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 | ||||||
Item 1. | ||||||||||||||
32-33 | ||||||||||||||
34-70 | ||||||||||||||
Item 2. | 1-26 | |||||||||||||
Item 3. | 27 | |||||||||||||
Item 4. | ||||||||||||||
Item 1. | ||||||||||||||
Item 1A. | ||||||||||||||
Item 2. | ||||||||||||||
Item 3. | ||||||||||||||
Item 4. | ||||||||||||||
Item 5. | ||||||||||||||
Item 6. | 74-75 | |||||||||||||
Three Months Ended September 30, | Percent Change | Nine Months Ended September 30, | Percent Change | |||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||
Client Metrics | ||||||||||||||||||||||||||||||||
Net new client assets (in billions) (1) | $ | 51.2 | $ | 56.6 | (10) | % | $ | 261.8 | $ | 145.5 | 80 | % | ||||||||||||||||||||
Core net new client assets (in billions) | $ | 42.7 | $ | 56.6 | (25) | % | $ | 162.5 | $ | 145.5 | 12 | % | ||||||||||||||||||||
Client assets (in billions, at quarter end) | $ | 4,395.3 | $ | 3,768.4 | 17 | % | ||||||||||||||||||||||||||
Average client assets (in billions) | $ | 4,331.5 | $ | 3,736.1 | 16 | % | $ | 4,033.3 | $ | 3,611.0 | 12 | % | ||||||||||||||||||||
New brokerage accounts (in thousands) (2) | 592 | 363 | 63 | % | 2,853 | 1,135 | 151 | % | ||||||||||||||||||||||||
Active brokerage accounts (in thousands, at quarter end) | 14,393 | 12,118 | 19 | % | ||||||||||||||||||||||||||||
Assets receiving ongoing advisory services (in billions, at quarter end) | $ | 2,231.3 | $ | 1,977.9 | 13 | % | ||||||||||||||||||||||||||
Client cash as a percentage of client assets (at quarter end) | 12.8 | % | 11.4 | % | ||||||||||||||||||||||||||||
Company Financial Information and Metrics | ||||||||||||||||||||||||||||||||
Total net revenues | $ | 2,448 | $ | 2,711 | (10) | % | $ | 7,515 | $ | 8,115 | (7) | % | ||||||||||||||||||||
Total expenses excluding interest | 1,559 | 1,475 | 6 | % | 4,691 | 4,379 | 7 | % | ||||||||||||||||||||||||
Income before taxes on income | 889 | 1,236 | (28) | % | 2,824 | 3,736 | (24) | % | ||||||||||||||||||||||||
Taxes on income | 191 | 285 | (33) | % | 660 | 884 | (25) | % | ||||||||||||||||||||||||
Net income | 698 | 951 | (27) | % | 2,164 | 2,852 | (24) | % | ||||||||||||||||||||||||
Preferred stock dividends and other | 83 | 38 | 118 | % | 171 | 127 | 35 | % | ||||||||||||||||||||||||
Net income available to common stockholders | $ | 615 | $ | 913 | (33) | % | $ | 1,993 | $ | 2,725 | (27) | % | ||||||||||||||||||||
Earnings per common share — diluted | $ | .48 | $ | .70 | (31) | % | $ | 1.54 | $ | 2.05 | (25) | % | ||||||||||||||||||||
Net revenue growth from prior year | (10) | % | 5 | % | (7) | % | 9 | % | ||||||||||||||||||||||||
Pre-tax profit margin | 36.3 | % | 45.6 | % | 37.6 | % | 46.0 | % | ||||||||||||||||||||||||
Return on average common stockholders’ equity (annualized) | 10 | % | 20 | % | 12 | % | 20 | % | ||||||||||||||||||||||||
Expenses excluding interest as a percentage of average client assets (annualized) | 0.14 | % | 0.16 | % | 0.16 | % | 0.16 | % | ||||||||||||||||||||||||
Consolidated Tier 1 Leverage Ratio (at quarter end) | 5.7 | % | 7.3 | % | ||||||||||||||||||||||||||||
Non-GAAP Financial Measures (3) | ||||||||||||||||||||||||||||||||
Adjusted total expenses (4) | $ | 1,492 | $ | 1,465 | $ | 4,488 | $ | 4,351 | ||||||||||||||||||||||||
Adjusted diluted EPS | $ | .51 | $ | .70 | $ | 1.66 | $ | 2.07 | ||||||||||||||||||||||||
Return on tangible common equity | 12 | % | 21 | % | 14 | % | 22 | % |
2020 | 2019 | ||||||||||||||||||||||||||||
Three Months Ended September 30, | Percent Change | Amount | % of Total Net Revenues | Amount | % of Total Net Revenues | ||||||||||||||||||||||||
Net interest revenue | |||||||||||||||||||||||||||||
Interest revenue | (24) | % | $ | 1,432 | 59 | % | $ | 1,892 | 70 | % | |||||||||||||||||||
Interest expense | (66) | % | (89) | (4) | % | (261) | (10) | % | |||||||||||||||||||||
Net interest revenue | (18) | % | 1,343 | 55 | % | 1,631 | 60 | % | |||||||||||||||||||||
Asset management and administration fees | |||||||||||||||||||||||||||||
Mutual funds, exchange traded funds (ETFs), and collective trust funds (CTFs) | (5) | % | 423 | 17 | % | 445 | 16 | % | |||||||||||||||||||||
Advice solutions | 22 | % | 373 | 15 | % | 305 | 11 | % | |||||||||||||||||||||
Other | (15) | % | 64 | 3 | % | 75 | 3 | % | |||||||||||||||||||||
Asset management and administration fees | 4 | % | 860 | 35 | % | 825 | 30 | % | |||||||||||||||||||||
Trading revenue | |||||||||||||||||||||||||||||
Commissions | (32) | % | 108 | 4 | % | 159 | 6 | % | |||||||||||||||||||||
Principal transactions | (54) | % | 6 | — | 13 | — | |||||||||||||||||||||||
Order flow revenue (1) | 97 | % | 67 | 3 | % | 34 | 2 | % | |||||||||||||||||||||
Trading revenue (1) | (12) | % | 181 | 7 | % | 206 | 8 | % | |||||||||||||||||||||
Other (1) | 31 | % | 64 | 3 | % | 49 | 2 | % | |||||||||||||||||||||
Total net revenues | (10) | % | $ | 2,448 | 100 | % | $ | 2,711 | 100 | % |
2020 | 2019 | ||||||||||||||||||||||||||||
Nine Months Ended September 30, | Percent Change | Amount | % of Total Net Revenues | Amount | % of Total Net Revenues | ||||||||||||||||||||||||
Net interest revenue | |||||||||||||||||||||||||||||
Interest revenue | (20) | % | $ | 4,626 | 61 | % | $ | 5,817 | 72 | % | |||||||||||||||||||
Interest expense | (64) | % | (322) | (4) | % | (896) | (11) | % | |||||||||||||||||||||
Net interest revenue | (13) | % | 4,304 | 57 | % | 4,921 | 61 | % | |||||||||||||||||||||
Asset management and administration fees | |||||||||||||||||||||||||||||
Mutual funds, ETFs, and CTFs | 1 | % | 1,300 | 17 | % | 1,287 | 16 | % | |||||||||||||||||||||
Advice solutions | 14 | % | 999 | 13 | % | 878 | 11 | % | |||||||||||||||||||||
Other | (6) | % | 189 | 3 | % | 201 | 2 | % | |||||||||||||||||||||
Asset management and administration fees | 5 | % | 2,488 | 33 | % | 2,366 | 29 | % | |||||||||||||||||||||
Trading revenue | |||||||||||||||||||||||||||||
Commissions | (30) | % | 332 | 4 | % | 477 | 6 | % | |||||||||||||||||||||
Principal transactions | (33) | % | 36 | 1 | % | 54 | 1 | % | |||||||||||||||||||||
Order flow revenue (1) | 96 | % | 194 | 3 | % | 99 | 1 | % | |||||||||||||||||||||
Trading revenue (1) | (11) | % | 562 | 8 | % | 630 | 8 | % | |||||||||||||||||||||
Other (1) | (19) | % | 161 | 2 | % | 198 | 2 | % | |||||||||||||||||||||
Total net revenues | (7) | % | $ | 7,515 | 100 | % | $ | 8,115 | 100 | % |
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Average Balance | Interest Revenue/ Expense | Average Yield/Rate | Average Balance | Interest Revenue/ Expense | Average Yield/Rate | |||||||||||||||||||||||||||||
Interest-earning assets | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 32,628 | $ | 8 | 0.10 | % | $ | 22,288 | $ | 123 | 2.16 | % | |||||||||||||||||||||||
Cash and investments segregated | 33,214 | 14 | 0.16 | % | 16,140 | 92 | 2.25 | % | |||||||||||||||||||||||||||
Broker-related receivables (1) | 754 | — | 0.05 | % | 216 | 2 | 2.34 | % | |||||||||||||||||||||||||||
Receivables from brokerage clients | 21,242 | 125 | 2.31 | % | 19,438 | 205 | 4.13 | % | |||||||||||||||||||||||||||
Available for sale securities (2,3) | 276,081 | 1,103 | 1.59 | % | 53,487 | 366 | 2.71 | % | |||||||||||||||||||||||||||
Held to maturity securities (3) | — | — | — | 136,880 | 906 | 2.63 | % | ||||||||||||||||||||||||||||
Bank loans | 21,668 | 134 | 2.46 | % | 16,724 | 146 | 3.49 | % | |||||||||||||||||||||||||||
Total interest-earning assets | 385,587 | 1,384 | 1.43 | % | 265,173 | 1,840 | 2.75 | % | |||||||||||||||||||||||||||
Other interest revenue | 48 | 52 | |||||||||||||||||||||||||||||||||
Total interest-earning assets | $ | 385,587 | $ | 1,432 | 1.47 | % | $ | 265,173 | $ | 1,892 | 2.82 | % | |||||||||||||||||||||||
Funding sources | |||||||||||||||||||||||||||||||||||
Bank deposits | $ | 310,685 | $ | 12 | 0.02 | % | $ | 208,592 | $ | 166 | 0.32 | % | |||||||||||||||||||||||
Payables to brokerage clients | 40,169 | 1 | 0.01 | % | 25,080 | 21 | 0.33 | % | |||||||||||||||||||||||||||
Short-term borrowings (1) | 5 | — | 0.12 | % | 21 | — | 2.48 | % | |||||||||||||||||||||||||||
Long-term debt | 7,992 | 69 | 3.46 | % | 7,425 | 67 | 3.58 | % | |||||||||||||||||||||||||||
Total interest-bearing liabilities | 358,851 | 82 | 0.09 | % | 241,118 | 254 | 0.42 | % | |||||||||||||||||||||||||||
Non-interest-bearing funding sources | 26,736 | 24,055 | |||||||||||||||||||||||||||||||||
Other interest expense | 7 | 7 | |||||||||||||||||||||||||||||||||
Total funding sources | $ | 385,587 | $ | 89 | 0.09 | % | $ | 265,173 | $ | 261 | 0.39 | % | |||||||||||||||||||||||
Net interest revenue | $ | 1,343 | 1.38 | % | $ | 1,631 | 2.43 | % |
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | Average Balance | Interest Revenue/ Expense | Average Yield/Rate | Average Balance | Interest Revenue/ Expense | Average Yield/Rate | |||||||||||||||||||||||||||||
Interest-earning assets | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 40,410 | $ | 112 | 0.37 | % | $ | 24,506 | $ | 432 | 2.33 | % | |||||||||||||||||||||||
Cash and investments segregated | 30,162 | 128 | 0.56 | % | 14,771 | 264 | 2.36 | % | |||||||||||||||||||||||||||
Broker-related receivables | 638 | 2 | 0.60 | % | 225 | 4 | 2.21 | % | |||||||||||||||||||||||||||
Receivables from brokerage clients | 19,442 | 404 | 2.73 | % | 19,279 | 636 | 4.35 | % | |||||||||||||||||||||||||||
Available for sale securities (2,3) | 236,204 | 3,434 | 1.93 | % | 58,738 | 1,203 | 2.72 | % | |||||||||||||||||||||||||||
Held to maturity securities (3) | — | — | — | 134,031 | 2,721 | 2.70 | % | ||||||||||||||||||||||||||||
Bank loans | 20,248 | 411 | 2.70 | % | 16,621 | 443 | 3.56 | % | |||||||||||||||||||||||||||
Total interest-earning assets | 347,104 | 4,491 | 1.72 | % | 268,171 | 5,703 | 2.82 | % | |||||||||||||||||||||||||||
Other interest revenue | 135 | 114 | |||||||||||||||||||||||||||||||||
Total interest-earning assets | $ | 347,104 | $ | 4,626 | 1.77 | % | $ | 268,171 | $ | 5,817 | 2.88 | % | |||||||||||||||||||||||
Funding sources | |||||||||||||||||||||||||||||||||||
Bank deposits | $ | 275,860 | $ | 81 | 0.04 | % | $ | 213,089 | $ | 616 | 0.39 | % | |||||||||||||||||||||||
Payables to brokerage clients | 36,001 | 10 | 0.04 | % | 23,443 | 68 | 0.39 | % | |||||||||||||||||||||||||||
Short-term borrowings (1) | 16 | — | 0.29 | % | 18 | — | 2.49 | % | |||||||||||||||||||||||||||
Long-term debt | 8,014 | 212 | 3.53 | % | 7,122 | 192 | 3.59 | % | |||||||||||||||||||||||||||
Total interest-bearing liabilities | 319,891 | 303 | 0.13 | % | 243,672 | 876 | 0.48 | % | |||||||||||||||||||||||||||
Non-interest-bearing funding sources | 27,213 | 24,499 | |||||||||||||||||||||||||||||||||
Other interest expense | 19 | 20 | |||||||||||||||||||||||||||||||||
Total funding sources | $ | 347,104 | $ | 322 | 0.13 | % | $ | 268,171 | $ | 896 | 0.45 | % | |||||||||||||||||||||||
Net interest revenue | $ | 4,304 | 1.64 | % | $ | 4,921 | 2.43 | % |
Three Months Ended September 30, | 2020 | 2019 | |||||||||||||||||||||||||||||||||
Average Client Assets | Revenue | Average Fee | Average Client Assets | Revenue | Average Fee | ||||||||||||||||||||||||||||||
Schwab money market funds before fee waivers | $ | 199,822 | $ | 153 | 0.30 | % | $ | 177,892 | $ | 133 | 0.30 | % | |||||||||||||||||||||||
Fee waivers | (44) | — | |||||||||||||||||||||||||||||||||
Schwab money market funds | $ | 199,822 | 109 | 0.22 | % | $ | 177,892 | 133 | 0.30 | % | |||||||||||||||||||||||||
Schwab equity and bond funds, ETFs, and CTFs | 306,899 | 75 | 0.10 | % | 274,005 | 75 | 0.11 | % | |||||||||||||||||||||||||||
Mutual Fund OneSource® and other non-transaction fee funds | 197,809 | 154 | 0.31 | % | 192,409 | 153 | 0.32 | % | |||||||||||||||||||||||||||
Other third-party mutual funds and ETFs (1) | 469,822 | 85 | 0.07 | % | 486,285 | 84 | 0.07 | % | |||||||||||||||||||||||||||
Total mutual funds, ETFs, and CTFs (2) | $ | 1,174,352 | 423 | 0.14 | % | $ | 1,130,591 | 445 | 0.16 | % | |||||||||||||||||||||||||
Advice solutions (2) | |||||||||||||||||||||||||||||||||||
Fee-based | $ | 307,983 | 373 | 0.48 | % | $ | 251,591 | 305 | 0.48 | % | |||||||||||||||||||||||||
Non-fee-based | 73,850 | — | — | 71,195 | — | — | |||||||||||||||||||||||||||||
Total advice solutions | $ | 381,833 | 373 | 0.39 | % | $ | 322,786 | 305 | 0.37 | % | |||||||||||||||||||||||||
Other balance-based fees (3) | 443,929 | 51 | 0.05 | % | 421,241 | 56 | 0.05 | % | |||||||||||||||||||||||||||
Other (4) | 13 | 19 | |||||||||||||||||||||||||||||||||
Total asset management and administration fees | $ | 860 | $ | 825 |
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | Average Client Assets | Revenue | Average Fee | Average Client Assets | Revenue | Average Fee | |||||||||||||||||||||||||||||
Schwab money market funds before fee waivers | $ | 205,544 | $ | 469 | 0.30 | % | $ | 166,053 | $ | 378 | 0.30 | % | |||||||||||||||||||||||
Fee waivers | (59) | — | |||||||||||||||||||||||||||||||||
Schwab money market funds | $ | 205,544 | 410 | 0.27 | % | $ | 166,053 | 378 | 0.30 | % | |||||||||||||||||||||||||
Schwab equity and bond funds, ETFs, and CTFs | 290,759 | 219 | 0.10 | % | 260,034 | 219 | 0.11 | % | |||||||||||||||||||||||||||
Mutual Fund OneSource ® and other non-transaction fee funds | 187,153 | 436 | 0.31 | % | 190,847 | 452 | 0.32 | % | |||||||||||||||||||||||||||
Other third-party mutual funds and ETFs (1) | 446,007 | 235 | 0.07 | % | 469,901 | 238 | 0.07 | % | |||||||||||||||||||||||||||
Total mutual funds, ETFs, and CTFs (2) | $ | 1,129,463 | 1,300 | 0.15 | % | $ | 1,086,835 | 1,287 | 0.16 | % | |||||||||||||||||||||||||
Advice solutions (2) | |||||||||||||||||||||||||||||||||||
Fee-based | $ | 277,297 | 999 | 0.48 | % | $ | 241,678 | 878 | 0.49 | % | |||||||||||||||||||||||||
Non-fee-based | 71,438 | — | — | 69,136 | — | — | |||||||||||||||||||||||||||||
Total advice solutions | $ | 348,735 | 999 | 0.38 | % | $ | 310,814 | 878 | 0.38 | % | |||||||||||||||||||||||||
Other balance-based fees (3) | 428,191 | 150 | 0.05 | % | 407,762 | 162 | 0.05 | % | |||||||||||||||||||||||||||
Other (4) | 39 | 39 | |||||||||||||||||||||||||||||||||
Total asset management and administration fees | $ | 2,488 | $ | 2,366 |
Schwab Money Market Funds | Schwab Equity and Bond Funds, ETFs, and CTFs | Mutual Fund OneSource® and Other NTF funds | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||
Balance at beginning of period | $ | 211,558 | $ | 168,064 | $ | 273,346 | $ | 254,460 | $ | 192,999 | $ | 197,777 | |||||||||||||||||||||||
Net inflows (outflows) | (21,280) | 18,044 | 3,564 | 7,408 | (2,504) | (5,586) | |||||||||||||||||||||||||||||
Net market gains (losses) and other | 34 | 843 | 17,539 | 1,296 | 13,098 | 2,482 | |||||||||||||||||||||||||||||
Balance at end of period | $ | 190,312 | $ | 186,951 | $ | 294,449 | $ | 263,164 | $ | 203,593 | $ | 194,673 |
Schwab Money Market Funds | Schwab Equity and Bond Funds, ETFs, and CTFs | Mutual Fund OneSource® and Other NTF funds | |||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||
Balance at beginning of period | $ | 200,826 | $ | 153,472 | $ | 286,275 | $ | 209,471 | $ | 202,068 | $ | 180,532 | |||||||||||||||||||||||
Net inflows (outflows) | (11,665) | 30,735 | 8,679 | 20,789 | (17,557) | (16,729) | |||||||||||||||||||||||||||||
Net market gains (losses) and other | 1,151 | 2,744 | (505) | 32,904 | 19,082 | 30,870 | |||||||||||||||||||||||||||||
Balance at end of period | $ | 190,312 | $ | 186,951 | $ | 294,449 | $ | 263,164 | $ | 203,593 | $ | 194,673 |
Three Months Ended September 30, | Percent Change | Nine Months Ended September 30, | Percent Change | ||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Trading revenue (1) | $ | 181 | $ | 206 | (12) | % | $ | 562 | $ | 630 | (11) | % | |||||||||||||||||||||||
Clients’ daily average trades (DATs) (in thousands) | 1,460 | 718 | 103 | % | 1,539 | 737 | 109 | % | |||||||||||||||||||||||||||
Number of trading days | 64.0 | 63.5 | 1 | % | 189.0 | 187.5 | 1 | % | |||||||||||||||||||||||||||
Revenue per trade (2) | $ | 1.94 | $ | 4.52 | (57) | % | $ | 1.93 | $ | 4.56 | (58) | % |
Three Months Ended September 30, | Percent Change | Nine Months Ended September 30, | Percent Change | ||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Compensation and benefits | |||||||||||||||||||||||||||||||||||
Salaries and wages | $ | 532 | $ | 546 | (3) | % | $ | 1,557 | $ | 1,498 | 4 | % | |||||||||||||||||||||||
Incentive compensation | 179 | 183 | (2) | % | 587 | 597 | (2) | % | |||||||||||||||||||||||||||
Employee benefits and other | 129 | 128 | 1 | % | 412 | 419 | (2) | % | |||||||||||||||||||||||||||
Total compensation and benefits | $ | 840 | $ | 857 | (2) | % | $ | 2,556 | $ | 2,514 | 2 | % | |||||||||||||||||||||||
Professional services | 194 | 168 | 15 | % | 574 | 516 | 11 | % | |||||||||||||||||||||||||||
Occupancy and equipment | 155 | 144 | 8 | % | 449 | 408 | 10 | % | |||||||||||||||||||||||||||
Advertising and market development | 66 | 71 | (7) | % | 203 | 217 | (6) | % | |||||||||||||||||||||||||||
Communications | 73 | 63 | 16 | % | 226 | 187 | 21 | % | |||||||||||||||||||||||||||
Depreciation and amortization (1) | 97 | 82 | 18 | % | 284 | 235 | 21 | % | |||||||||||||||||||||||||||
Amortization of acquired intangible assets (1) | 25 | 6 | N/M | 43 | 20 | 115 | % | ||||||||||||||||||||||||||||
Regulatory fees and assessments | 36 | 30 | 20 | % | 106 | 92 | 15 | % | |||||||||||||||||||||||||||
Other | 73 | 54 | 35 | % | 250 | 190 | 32 | % | |||||||||||||||||||||||||||
Total expenses excluding interest | $ | 1,559 | $ | 1,475 | 6 | % | $ | 4,691 | $ | 4,379 | 7 | % | |||||||||||||||||||||||
Expenses as a percentage of total net revenues | |||||||||||||||||||||||||||||||||||
Compensation and benefits | 34 | % | 32 | % | 34 | % | 31 | % | |||||||||||||||||||||||||||
Advertising and market development | 3 | % | 3 | % | 3 | % | 3 | % | |||||||||||||||||||||||||||
Full-time equivalent employees (in thousands) | |||||||||||||||||||||||||||||||||||
At quarter end | 22.1 | 19.8 | 12 | % | |||||||||||||||||||||||||||||||
Average | 22.1 | 20.2 | 9 | % | 21.1 | 20.1 | 5 | % |
Investor Services | Advisor Services | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Percent Change | 2020 | 2019 | Percent Change | 2020 | 2019 | Percent Change | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||
Net Revenues | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest revenue | (20) | % | $ | 948 | $ | 1,182 | (12) | % | $ | 395 | $ | 449 | (18) | % | $ | 1,343 | $ | 1,631 | |||||||||||||||||||||||||||||||||||
Asset management and administration fees | 10 | % | 643 | 586 | (9) | % | 217 | 239 | 4 | % | 860 | 825 | |||||||||||||||||||||||||||||||||||||||||
Trading revenue (1) | (1) | % | 139 | 140 | (36) | % | 42 | 66 | (12) | % | 181 | 206 | |||||||||||||||||||||||||||||||||||||||||
Other (1) | 42 | % | 51 | 36 | — | 13 | 13 | 31 | % | 64 | 49 | ||||||||||||||||||||||||||||||||||||||||||
Total net revenues | (8) | % | 1,781 | 1,944 | (13) | % | 667 | 767 | (10) | % | 2,448 | 2,711 | |||||||||||||||||||||||||||||||||||||||||
Expenses Excluding Interest | 9 | % | 1,167 | 1,070 | (3) | % | 392 | 405 | 6 | % | 1,559 | 1,475 | |||||||||||||||||||||||||||||||||||||||||
Income before taxes on income | (30) | % | $ | 614 | $ | 874 | (24) | % | $ | 275 | $ | 362 | (28) | % | $ | 889 | $ | 1,236 | |||||||||||||||||||||||||||||||||||
Net New Client Assets (in billions) (2) | (26) | % | $ | 18.9 | $ | 25.4 | 4 | % | $ | 32.3 | $ | 31.2 | (10) | % | $ | 51.2 | $ | 56.6 |
Investor Services | Advisor Services | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | Percent Change | 2020 | 2019 | Percent Change | 2020 | 2019 | Percent Change | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||
Net Revenues | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest revenue | (14) | % | $ | 3,028 | $ | 3,531 | (8) | % | $ | 1,276 | $ | 1,390 | (13) | % | $ | 4,304 | $ | 4,921 | |||||||||||||||||||||||||||||||||||
Asset management and administration fees | 9 | % | 1,826 | 1,679 | (4) | % | 662 | 687 | 5 | % | 2,488 | 2,366 | |||||||||||||||||||||||||||||||||||||||||
Trading revenue (1) | (6) | % | 396 | 421 | (21) | % | 166 | 209 | (11) | % | 562 | 630 | |||||||||||||||||||||||||||||||||||||||||
Other (1) | 6 | % | 122 | 115 | (53) | % | 39 | 83 | (19) | % | 161 | 198 | |||||||||||||||||||||||||||||||||||||||||
Total net revenues | (7) | % | 5,372 | 5,746 | (10) | % | 2,143 | 2,369 | (7) | % | 7,515 | 8,115 | |||||||||||||||||||||||||||||||||||||||||
Expenses Excluding Interest | 9 | % | 3,489 | 3,189 | 1 | % | 1,202 | 1,190 | 7 | % | 4,691 | 4,379 | |||||||||||||||||||||||||||||||||||||||||
Income before taxes on income | (26) | % | $ | 1,883 | $ | 2,557 | (20) | % | $ | 941 | $ | 1,179 | (24) | % | $ | 2,824 | $ | 3,736 | |||||||||||||||||||||||||||||||||||
Net New Client Assets (in billions) (2) | 131 | % | $ | 167.2 | $ | 72.5 | 30 | % | $ | 94.6 | $ | 73.0 | 80 | % | $ | 261.8 | $ | 145.5 |
September 30, 2020 | December 31, 2019 | ||||||||||
Increase of 100 basis points | 13.9 | % | 4.8 | % | |||||||
Decrease of 100 basis points | (4.8) | % | (7.4) | % |
Description | Borrower | Outstanding | Available | ||||||||
Federal Home Loan Bank secured credit facility (1) | Banking subsidiaries | $ | — | $ | 45,461 | ||||||
Federal Reserve discount window (2) | Banking subsidiaries | — | 7,552 | ||||||||
Uncommitted, unsecured lines of credit with various external banks | CSC, CS&Co | — | 1,522 | ||||||||
Unsecured commercial paper | CSC | — | 750 | ||||||||
Committed, unsecured credit facility with various external banks | CSC | — | 700 | ||||||||
Average for the Three Months Ended September 30, 2020 | |||||
Total eligible high quality liquid assets | $ | 70,021 | |||
Net cash outflows | $ | 64,595 | |||
LCR | 108 | % |
September 30, 2020 | Par Outstanding | Maturity | Weighted Average Interest Rate | Moody’s | Standard & Poor’s | Fitch | ||||||||||||||
CSC Senior Notes | $ | 7,881 | 2021 - 2030 | 3.27% | A2 | A | A | |||||||||||||
Issuance Date | Issuance Amount | Maturity Date | Interest Rate | ||||||||
03/24/20 | $ | 600 | 03/24/25 | 4.200 | % | ||||||
03/24/20 | $ | 500 | 03/22/30 | 4.625 | % |
Date Issued and Sold | Net Proceeds | |||||||
Series G | April 30, 2020 | $ | 2,470 |
September 30, 2020 (1) | December 31, 2019 (1) | ||||||||||||||||||||||
CSC | CSB | CSC | CSB | ||||||||||||||||||||
Total stockholders’ equity | $ | 31,331 | $ | 21,606 | $ | 21,745 | $ | 14,832 | |||||||||||||||
Less: | |||||||||||||||||||||||
Preferred stock | 5,263 | — | 2,793 | — | |||||||||||||||||||
Common Equity Tier 1 Capital before regulatory adjustments | $ | 26,068 | $ | 21,606 | $ | 18,952 | $ | 14,832 | |||||||||||||||
Less: | |||||||||||||||||||||||
Goodwill, net of associated deferred tax liabilities | $ | 1,694 | $ | 13 | $ | 1,184 | $ | 13 | |||||||||||||||
Other intangible assets, net of associated deferred tax liabilities | 1,234 | — | 104 | — | |||||||||||||||||||
Deferred tax assets, net of valuation allowances and deferred tax liabilities | 16 | 11 | 4 | — | |||||||||||||||||||
AOCI adjustment (1) | 5,686 | 4,934 | — | — | |||||||||||||||||||
Common Equity Tier 1 Capital | $ | 17,438 | $ | 16,648 | $ | 17,660 | $ | 14,819 | |||||||||||||||
Tier 1 Capital | $ | 22,701 | $ | 16,648 | $ | 20,453 | $ | 14,819 | |||||||||||||||
Total Capital | 22,735 | 16,680 | 20,472 | 14,837 | |||||||||||||||||||
Risk-Weighted Assets | 109,364 | 87,019 | 90,512 | 71,521 | |||||||||||||||||||
Total Leverage Exposure | 408,295 | 302,520 | 286,813 | 216,582 | |||||||||||||||||||
Common Equity Tier 1 Capital/Risk-Weighted Assets | 15.9 | % | 19.1 | % | 19.5 | % | 20.7 | % | |||||||||||||||
Tier 1 Capital/Risk-Weighted Assets | 20.8 | % | 19.1 | % | 22.6 | % | 20.7 | % | |||||||||||||||
Total Capital/Risk-Weighted Assets | 20.8 | % | 19.2 | % | 22.6 | % | 20.7 | % | |||||||||||||||
Tier 1 Leverage Ratio | 5.7 | % | 5.6 | % | 7.3 | % | 7.1 | % | |||||||||||||||
Supplementary Leverage Ratio | 5.6 | % | 5.5 | % | 7.1 | % | 6.8 | % |
2020 | 2019 | ||||||||||||||||||||||
Nine Months Ended September 30, | Cash Paid | Per Share Amount | Cash Paid | Per Share Amount | |||||||||||||||||||
Common Stock | $ | 700 | $ | .54 | $ | 679 | $ | .51 | |||||||||||||||
Series A Preferred Stock (1) | 28 | 70.00 | 28 | 70.00 | |||||||||||||||||||
Series C Preferred Stock (2) | 27 | 45.00 | 27 | 45.00 | |||||||||||||||||||
Series D Preferred Stock (2) | 33 | 44.64 | 33 | 44.64 | |||||||||||||||||||
Series E Preferred Stock (3) | 28 | 4,625.00 | 28 | 4,625.00 | |||||||||||||||||||
Series F Preferred Stock (4) | 13 | 2,500.00 | 13 | 2,500.00 | |||||||||||||||||||
Series G Preferred Stock (5) | 45 | 1,806.60 | N/A | N/A |
October 6, 2020 | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | Total | |||||||||||||||||||||||||||
Long-term debt (1) | $ | 99 | $ | 1,509 | $ | 1,015 | $ | 1,395 | $ | 4,018 |
Non-GAAP Adjustment or Measure | Definition | Usefulness to Management and Investors | ||||||
Acquisition and integration-related costs and amortization of acquired intangible assets | Schwab adjusts certain GAAP financial measures to exclude the impact of acquisition and integration-related costs incurred as a result of the Company’s acquisitions, amortization of acquired intangible assets, and, where applicable, the income tax effect of these expenses. Adjustments made to exclude amortization of acquired intangible assets are reflective of all acquired intangible assets, which were recorded as part of purchase accounting. These acquired intangible assets contribute to the Company’s revenue generation. Amortization of acquired intangible assets will continue in future periods over their remaining useful lives. | We exclude acquisition and integration-related costs and amortization of acquired intangible assets for the purpose of calculating certain non-GAAP measures because we believe doing so provides additional transparency of Schwab’s ongoing operations, and may be useful in both evaluating the operating performance of the business and facilitating comparison of results with prior and future periods. Acquisition and integration-related costs fluctuate based on the timing of acquisitions and integration activities, thereby limiting comparability of results among periods, and are not representative of the costs of running the Company’s ongoing business. Amortization of acquired intangible assets is excluded because management does not believe it is indicative of the Company’s underlying operating performance. | ||||||
Return on tangible common equity | Return on tangible common equity represents annualized adjusted net income available to common stockholders as a percentage of average tangible common equity. Tangible common equity represents common equity less goodwill, acquired intangible assets – net, and related deferred tax liabilities. | Acquisitions typically result in the recognition of significant amounts of goodwill and acquired intangible assets. We believe return on tangible common equity may be useful to investors as a supplemental measure to facilitate assessing capital efficiency and returns relative to the composition of Schwab’s balance sheet. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||
Total expenses excluding interest (GAAP) | $ | 1,559 | $ | 1,475 | $ | 4,691 | $ | 4,379 | |||||||||
Acquisition and integration-related costs (1) | (42) | (4) | (160) | (8) | |||||||||||||
Amortization of acquired intangible assets | (25) | (6) | (43) | (20) | |||||||||||||
Adjusted total expenses (non-GAAP) | $ | 1,492 | $ | 1,465 | $ | 4,488 | $ | 4,351 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||
Amount | Diluted EPS | Amount | Diluted EPS | Amount | Diluted EPS | Amount | Diluted EPS | ||||||||||||||||||||||
Net income available to common stockholders (GAAP), Earnings per common share — diluted (GAAP) | $ | 615 | $ | .48 | $ | 913 | $ | .70 | $ | 1,993 | $ | 1.54 | $ | 2,725 | $ | 2.05 | |||||||||||||
Acquisition and integration-related costs | 42 | .03 | 4 | — | 160 | .12 | 8 | .01 | |||||||||||||||||||||
Amortization of acquired intangible assets | 25 | .02 | 6 | — | 43 | .03 | 20 | .02 | |||||||||||||||||||||
Income tax effects (1) | (16) | (.02) | (3) | — | (49) | (.03) | (7) | (.01) | |||||||||||||||||||||
Adjusted net income available to common stockholders (non-GAAP), Adjusted diluted EPS (non-GAAP) | $ | 666 | $ | .51 | $ | 920 | $ | .70 | $ | 2,147 | $ | 1.66 | $ | 2,746 | $ | 2.07 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||
Return on average common stockholders' equity (GAAP) | 10 | % | 20 | % | 12 | % | 20 | % | |||||||||
Average common stockholders' equity | $ | 25,810 | $ | 18,544 | $ | 22,511 | $ | 18,219 | |||||||||
Less: Average goodwill | (1,735) | (1,227) | (1,482) | (1,227) | |||||||||||||
Less: Average acquired intangible assets — net | (1,268) | (137) | (693) | (143) | |||||||||||||
Plus: Average deferred tax liabilities related to goodwill and acquired intangible assets — net | 67 | 67 | 67 | 67 | |||||||||||||
Average tangible common equity | $ | 22,874 | $ | 17,247 | $ | 20,403 | $ | 16,916 | |||||||||
Adjusted net income available to common stockholders (1) | $ | 666 | $ | 920 | $ | 2,147 | $ | 2,746 | |||||||||
Return on tangible common equity (non-GAAP) | 12 | % | 21 | % | 14 | % | 22 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net Revenues | |||||||||||||||||||||||
Interest revenue | $ | $ | $ | $ | |||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Net interest revenue | |||||||||||||||||||||||
Asset management and administration fees | |||||||||||||||||||||||
Trading revenue (1) | |||||||||||||||||||||||
Other (1) | |||||||||||||||||||||||
Total net revenues | |||||||||||||||||||||||
Expenses Excluding Interest | |||||||||||||||||||||||
Compensation and benefits | |||||||||||||||||||||||
Professional services | |||||||||||||||||||||||
Occupancy and equipment | |||||||||||||||||||||||
Advertising and market development | |||||||||||||||||||||||
Communications | |||||||||||||||||||||||
Depreciation and amortization (2) | |||||||||||||||||||||||
Amortization of acquired intangible assets (2) | |||||||||||||||||||||||
Regulatory fees and assessments | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total expenses excluding interest | |||||||||||||||||||||||
Income before taxes on income | |||||||||||||||||||||||
Taxes on income | |||||||||||||||||||||||
Net Income | |||||||||||||||||||||||
Preferred stock dividends and other (3) | |||||||||||||||||||||||
Net Income Available to Common Stockholders | $ | $ | $ | $ | |||||||||||||||||||
Weighted-Average Common Shares Outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted (4) | |||||||||||||||||||||||
Earnings Per Common Shares Outstanding: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted (4) | $ | $ | $ | $ | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
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 | |||||||||||||||||||||||
Other comprehensive income (loss), before tax | |||||||||||||||||||||||
Income tax effect | ( | ( | ( | ( | |||||||||||||||||||
Other comprehensive income (loss), net of tax | |||||||||||||||||||||||
Comprehensive Income | $ | $ | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Cash and investments segregated and on deposit for regulatory purposes (including resale agreements of $ | |||||||||||
Receivables from brokerage clients — net | |||||||||||
Available for sale securities (amortized cost of $ $ | |||||||||||
Held to maturity securities | |||||||||||
Bank loans — net | |||||||||||
Equipment, office facilities, and property — net | |||||||||||
Goodwill | |||||||||||
Acquired intangible assets — net (1) | |||||||||||
Other assets (1) | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||
Bank deposits | $ | $ | |||||||||
Payables to brokerage clients | |||||||||||
Accrued expenses and other liabilities | |||||||||||
Long-term debt | |||||||||||
Total liabilities | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred stock — $ and $ | |||||||||||
Common stock — shares issued | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Treasury stock, at cost — shares at December 31, 2019 | ( | ( | |||||||||
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 June 30, 2019 | $ | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | — | |||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||
Dividends declared on common stock — $ | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||
Stock option exercises and other | — | — | — | ( | — | — | |||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||
Other | — | — | — | — | |||||||||||||||||||||||||
Balance at September 30, 2019 | $ | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||
Balance at June 30, 2020 | $ | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | — | |||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||
Dividends declared on common stock — $ | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||
Stock option exercises and other | — | — | — | ( | — | — | |||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||
Other | — | — | — | — | |||||||||||||||||||||||||
Balance at September 30, 2020 | $ | $ | $ | $ | $ | ( | $ | $ |
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, 2018 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | — | |||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||
Dividends declared on common stock — $ | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||
Stock option exercises and other | — | — | — | ( | — | — | |||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||
Other | — | — | — | ( | — | ||||||||||||||||||||||||
Balance at September 30, 2019 | $ | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||
Balance at December 31, 2019 | $ | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | — | |||||||||||||||||||||||
Issuance of preferred stock, net | — | — | — | — | — | — | |||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||
Dividends declared on common stock — $ | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||
Stock option exercises and other | — | — | — | ( | — | — | |||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||
Other | — | — | — | ( | — | ||||||||||||||||||||||||
Balance at September 30, 2020 | $ | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||
See Notes to Consolidated Financial Statements. |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
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 | |||||||||||
Amortization of acquired intangible assets | |||||||||||
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 brokerage clients | ( | ||||||||||
Other assets | ( | ( | |||||||||
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 | ( | ( | |||||||||
Cash acquired in acquisition, net of cash paid | |||||||||||
Purchases of equipment, office facilities, and property | ( | ( | |||||||||
Purchases of Federal Home Loan Bank stock | ( | ( | |||||||||
Purchases of Federal Reserve stock | ( | ||||||||||
Other investing activities | ( | ( | |||||||||
Net cash provided by (used for) investing activities | ( | ||||||||||
Cash Flows from Financing Activities | |||||||||||
Net change in bank deposits | ( | ||||||||||
Issuance of long-term debt | |||||||||||
Repayment of long-term debt | ( | ||||||||||
Net proceeds from preferred stock offerings | |||||||||||
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 Period | |||||||||||
Cash and Cash Equivalents, including Amounts Restricted at End of Period | $ | $ |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Supplemental Cash Flow Information | |||||||||||
Non-cash investing activity: | |||||||||||
Securities transferred from held to maturity to available for sale, at fair value | $ | $ | |||||||||
Additions of equipment, office facilities, and property | $ | $ | |||||||||
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 | $ | $ | |||||||||
Leased assets obtained in exchange for new operating lease liabilities | $ | $ | |||||||||
September 30, 2020 | September 30, 2019 | ||||||||||
Reconciliation of cash, cash equivalents and amounts reported within the balance sheet (1) | |||||||||||
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 | $ | $ |
Standard | Description | Date of Adoption | Effects on the Financial Statements or Other Significant Matters | ||||||||
Accounting Standards Update (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 other-than-temporary impairment (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 modified retrospective transition through 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 | The Company adopted CECL as of January 1, 2020 using the modified retrospective method. The adoption of CECL resulted in an immaterial increase in the Company’s allowance for credit losses and an increase in the liability for expected credit losses on commitments to extend credit, both primarily related to First Mortgages and HELOCs. The adoption impact was recorded as an adjustment to retained earnings as of the date of adoption. | ||||||||
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 | The Company adopted this guidance prospectively on January 1, 2020. As such, adoption had no impact on the Company’s financial statements. 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 going forward. |
Standard | Description | Required Date of Adoption | Effects on the Financial Statements or Other Significant Matters | ||||||||
ASU 2020-4, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” | Provides optional expedients and exceptions for applying existing accounting guidance to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met, including simplifying accounting analyses for contract modifications. This guidance only applies to the items listed above if they reference LIBOR or another reference rate expected to be discontinued because of reference rate reform and only for a limited period of time. When elected, the optional expedients for contract modifications must be applied consistently for all eligible contracts or eligible transactions subject to the same accounting guidance that would have otherwise been applied. Once elected, the amendments must be applied prospectively. | N/A. Effective March 12, 2020 through December 31, 2022 | The Company adopted this guidance prospectively as of October 1, 2020. There was no impact to the Company’s consolidated financial statements upon initial adoption. |
Fair value of consideration for TD Ameritrade outstanding common stock | $ | |||||||
Fair value of replaced TD Ameritrade equity awards attributable to pre-combination services (1) | ||||||||
Provisional purchase price | $ |
Purchase price | $ | ||||
Fair value of assets acquired: | |||||
Cash and cash equivalents | |||||
Cash and investments segregated and on deposit for regulatory purposes | |||||
Receivables from brokerage clients | |||||
Available for sale securities | |||||
Acquired intangible assets | |||||
Equipment, office facilities, and property | |||||
Other assets | |||||
Total assets acquired | |||||
Fair value of liabilities assumed: | |||||
Payables to brokerage clients | |||||
Accrued expenses and other liabilities | |||||
Long-term debt | |||||
Total liabilities assumed | |||||
Fair value of net identifiable assets acquired | |||||
Goodwill | $ |
Estimated Fair Value | Weighted-Average Estimated Useful Life (Years) | |||||||||||||
Equipment, office facilities and property | ||||||||||||||
Real property (1) | $ | |||||||||||||
Personal property (2) | ||||||||||||||
Construction in progress | N/A | |||||||||||||
Land | N/A | |||||||||||||
Total equipment, office facilities and property | $ | |||||||||||||
Acquired intangible assets | ||||||||||||||
Client relationships | $ | |||||||||||||
Existing technology | ||||||||||||||
Trade names | ||||||||||||||
Total acquired intangible assets | $ |
Purchase price | $ | ||||
Fair value of assets acquired: | |||||
Cash segregated and on deposit for regulatory purposes | |||||
Receivables from brokerage clients | |||||
Acquired intangible assets | |||||
Total assets acquired | |||||
Fair value of liabilities assumed: | |||||
Payables to brokerage clients | |||||
Total liabilities assumed | |||||
Fair value of net identifiable assets acquired | |||||
Goodwill | $ |
Estimated Fair Value | Weighted-Average Estimated Useful Life (years) | ||||||||||
Customer relationships | $ | ||||||||||
Brokerage referral agreement (1) | |||||||||||
Royalty-free license | |||||||||||
Total acquired intangible assets | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Total net revenues | $ | $ | $ | $ | |||||||||||||||||||
Net income | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||
Net interest revenue | ||||||||||||||||||||
Interest revenue | $ | $ | $ | $ | ||||||||||||||||
Interest expense | ( | ( | ( | ( | ||||||||||||||||
Net interest revenue | ||||||||||||||||||||
Asset management and administration fees | ||||||||||||||||||||
Mutual funds, ETFs, and CTFs | ||||||||||||||||||||
Advice solutions | ||||||||||||||||||||
Other | ||||||||||||||||||||
Asset management and administration fees | ||||||||||||||||||||
Trading revenue | ||||||||||||||||||||
Commissions | ||||||||||||||||||||
Principal transactions | ||||||||||||||||||||
Order flow revenue (1) | ||||||||||||||||||||
Trading revenue (1) | ||||||||||||||||||||
Other (1) | ||||||||||||||||||||
Total net revenues | $ | $ | $ | $ |
September 30, 2020 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||||
Available for sale securities | ||||||||||||||||||||||||||
U.S. agency mortgage-backed securities | $ | $ | $ | $ | ||||||||||||||||||||||
Asset-backed securities (1) | ||||||||||||||||||||||||||
Corporate debt securities (2) | ||||||||||||||||||||||||||
U.S. Treasury securities | ||||||||||||||||||||||||||
U.S. state and municipal securities | ||||||||||||||||||||||||||
Non-agency commercial mortgage-backed securities | ||||||||||||||||||||||||||
Certificates of deposit | ||||||||||||||||||||||||||
Foreign government agency securities | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Total available for sale securities | $ | $ | $ | $ | ||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||
Available for sale securities | ||||||||||||||||||||||||||
U.S. agency mortgage-backed securities | $ | $ | $ | $ | ||||||||||||||||||||||
Corporate debt securities (2) | ||||||||||||||||||||||||||
Asset-backed securities (1) | ||||||||||||||||||||||||||
U.S. Treasury securities | ||||||||||||||||||||||||||
Certificates of deposit | ||||||||||||||||||||||||||
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 | $ | $ | $ | $ |
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||
September 30, 2020 | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||||||||||||
Available for sale securities | |||||||||||||||||||||||||||||||||||
Asset-backed securities | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
U.S. agency mortgage-backed securities | |||||||||||||||||||||||||||||||||||
Foreign government agency securities | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||
Available for sale securities | |||||||||||||||||||||||||||||||||||
U.S. agency mortgage-backed securities | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Asset-backed securities | |||||||||||||||||||||||||||||||||||
U.S. Treasury securities | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Held to maturity securities | |||||||||||||||||||||||||||||||||||
U.S. agency mortgage-backed securities | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Asset-backed securities | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Total securities with unrealized losses | $ | $ | $ | $ | $ | $ |
September 30, 2020 | 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 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Asset-backed securities | |||||||||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||||||||
U.S. Treasury securities | |||||||||||||||||||||||||||||
U.S. state and municipal securities | |||||||||||||||||||||||||||||
Non-agency commercial mortgage-backed securities | |||||||||||||||||||||||||||||
Certificates of deposit | |||||||||||||||||||||||||||||
Foreign government agency securities | |||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Total fair value | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Total amortized cost | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Proceeds | $ | $ | $ | $ | |||||||||||||||||||
Gross realized gains | |||||||||||||||||||||||
Gross realized losses |
September 30, 2020 | 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 credit losses | Total bank loans – net | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||
First Mortgages (1,2) | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
HELOCs (1,2) | ||||||||||||||||||||||||||
Total residential real estate | ||||||||||||||||||||||||||
Pledged asset lines | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Total bank loans | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||
First Mortgages (1,2) | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
HELOCs (1,2) | ||||||||||||||||||||||||||
Total residential real estate | ||||||||||||||||||||||||||
Pledged asset lines | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Total bank loans | $ | $ | $ | $ | $ | $ | $ | $ |
September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | First Mortgages | HELOCs | Total residential real estate | Other | Total (1) | First Mortgages | HELOCs | Total residential real estate | Other | Total (1) | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
Provision for credit losses | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ |
September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended | First Mortgages | HELOCs | Total residential real estate | Other | Total (1) | First Mortgages | HELOCs | Total residential real estate | Other | Total (1) | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
Adoption of ASU 2016-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for credit losses | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||
Nonaccrual loans (1) | $ | $ | |||||||||
Other real estate owned (2) | |||||||||||
Total nonperforming assets | |||||||||||
Troubled debt restructurings | |||||||||||
Total nonperforming assets and troubled debt restructurings | $ | $ |
First Mortgages Amortized Cost Basis by Origination Year | ||||||||||||||||||||||||||||||||
September 30, 2020 | 2020 | 2019 | 2018 | 2017 | 2016 | pre-2016 | Total First Mortgages | Revolving HELOCs amortized cost basis | HELOCs converted to term loans | Total HELOCs | ||||||||||||||||||||||
Origination FICO | ||||||||||||||||||||||||||||||||
<620 | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||
620 – 679 | ||||||||||||||||||||||||||||||||
680 – 739 | ||||||||||||||||||||||||||||||||
≥740 | ||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||
Origination LTV | ||||||||||||||||||||||||||||||||
≤70% | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||
>70% – ≤90% | ||||||||||||||||||||||||||||||||
>90% – ≤100% | ||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||
Weighted Average Updated FICO | ||||||||||||||||||||||||||||||||
<620 | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||
620 – 679 | ||||||||||||||||||||||||||||||||
680 – 739 | ||||||||||||||||||||||||||||||||
≥740 | ||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||
Estimated Current LTV (1) | ||||||||||||||||||||||||||||||||
≤70% | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||
>70% – ≤90% | ||||||||||||||||||||||||||||||||
>90% – ≤100% | ||||||||||||||||||||||||||||||||
>100% | ||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||
Percent of Loans on Nonaccrual Status | % | % | % | % | % | % | % | % | % | % |
September 30, 2020 | Balance | Weighted Average Updated FICO | Percent of Loans on Nonaccrual Status | |||||||||||||||||
Pledged Asset Lines | ||||||||||||||||||||
Weighted-Average LTV (1) | ||||||||||||||||||||
=70% | $ |
First Mortgages Amortized Cost Basis by Origination Year | |||||||||||||||||||||||||||||
December 31, 2019 | 2019 | 2018 | 2017 | 2016 | pre-2016 | Total First Mortgages | Revolving HELOCs amortized cost basis | HELOCs converted to term loans | Total HELOCs | ||||||||||||||||||||
Origination FICO | |||||||||||||||||||||||||||||
<620 | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
620 – 679 | |||||||||||||||||||||||||||||
680 – 739 | |||||||||||||||||||||||||||||
≥740 | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Origination LTV | |||||||||||||||||||||||||||||
≤70% | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
>70% – ≤90% | |||||||||||||||||||||||||||||
>90% – ≤100% | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Weighted Average Updated FICO | |||||||||||||||||||||||||||||
<620 | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
620 – 679 | |||||||||||||||||||||||||||||
680 – 739 | |||||||||||||||||||||||||||||
≥740 | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Estimated Current LTV (1) | |||||||||||||||||||||||||||||
≤70% | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
>70% – ≤90% | |||||||||||||||||||||||||||||
>90% – ≤100% | |||||||||||||||||||||||||||||
>100% | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Percent of Loans on Nonaccrual Status | % | % | % | % | % | % | % | % | % |
December 31, 2019 | Balance | Weighted Average Updated FICO | Percent of Loans on Nonaccrual Status | |||||||||||||||||
Pledged Asset Lines | ||||||||||||||||||||
Weighted-Average LTV (1) | ||||||||||||||||||||
=70% | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
HELOCs converted to amortizing loans | $ | $ | $ | $ |
September 30, 2020 | Balance | |||||||
Converted to an amortizing loan by period end | $ | |||||||
Within 1 year | ||||||||
> 1 year – 3 years | ||||||||
> 3 years – 5 years | ||||||||
> 5 years | ||||||||
Total | $ |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
Aggregate assets | Aggregate liabilities | Maximum exposure to loss | Aggregate assets | Aggregate liabilities | Maximum exposure to loss | |||||||||||||||||||||||||||||||||
LIHTC investments (1) | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Other CRA investments (2) | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
September 30, 2020 | December 31, 2019 | |||||||||||||
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 | September 30, 2020 | December 31, 2019 | |||||||||
Fixed-rate Senior Notes: | |||||||||||
07/22/10 | $ | $ | |||||||||
05/22/18 | |||||||||||
08/29/12 | |||||||||||
12/07/17 | |||||||||||
10/31/18 | |||||||||||
03/10/15 | |||||||||||
03/24/20 | |||||||||||
05/22/18 | |||||||||||
11/13/15 | |||||||||||
03/02/17 | |||||||||||
12/07/17 | |||||||||||
10/31/18 | |||||||||||
05/22/19 | |||||||||||
03/24/20 | |||||||||||
Floating-rate Senior Notes: | |||||||||||
Three-month LIBOR + | 05/22/18 | ||||||||||
Total Senior Notes | |||||||||||
07/01/20 | |||||||||||
Unamortized discount — net | ( | ( | |||||||||
Debt issuance costs | ( | ( | |||||||||
Total long-term debt | $ | $ |
Maturities | |||||
2020 | $ | ||||
2021 | |||||
2022 | |||||
2023 | |||||
2024 | |||||
Thereafter | |||||
Total maturities | |||||
Unamortized discount — net | ( | ||||
Debt issuance costs | ( | ||||
Total long-term debt | $ |
Date of issuance | Principal Amount Outstanding | ||||||||||
Fixed-rate TDA Senior Notes: | |||||||||||
03/09/15 | $ | ||||||||||
11/01/18 | |||||||||||
10/22/14 | |||||||||||
04/27/17 | |||||||||||
08/16/19 | |||||||||||
Floating-rate TDA Senior Notes: | |||||||||||
Three-month LIBOR + | 11/01/18 | ||||||||||
Total TDA Senior Notes principal outstanding (1) | $ |
September 30, 2020 | December 31, 2019 | ||||||||||
Commitments to extend credit related to unused HELOCs, PALs, and other lines of credit | $ | $ | |||||||||
Commitments to purchase First Mortgage loans | |||||||||||
Total | $ | $ |
Gross Assets/ Liabilities | Gross Amounts Offset in the Condensed Consolidated Balance Sheets | Net Amounts Presented in the Condensed Consolidated Balance Sheets | Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets | Net Amount | |||||||||||||||||||||||||||||||||||||
Counterparty Offsetting | Collateral | ||||||||||||||||||||||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||
Resale agreements (1) | $ | $ | $ | $ | $ | ( | (2) | $ | |||||||||||||||||||||||||||||||||
Securities borrowed (3) | ( | ( | |||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||||
Securities loaned (4,5) | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||
Resale agreements (1) | $ | $ | $ | $ | $ | ( | (2) | $ | |||||||||||||||||||||||||||||||||
Securities borrowed (3) | ( | ( | |||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||||
Securities loaned (4,5) | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | ( | $ | ( | $ |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||
Fair value of client securities available to be pledged | $ | $ | ||||||||||||||||||||||||
Fair value of 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 | $ | $ |
September 30, 2020 | Level 1 | Level 2 | Level 3 | Balance at Fair Value | |||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Money market funds | $ | $ | $ | $ | |||||||||||||||||||
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 | |||||||||||||||||||||||
Available for sale securities: | |||||||||||||||||||||||
U.S. agency mortgage-backed securities | |||||||||||||||||||||||
Asset-backed securities | |||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||
U.S. Treasury securities | |||||||||||||||||||||||
U.S. state and municipal securities | |||||||||||||||||||||||
Non-agency commercial mortgage-backed securities | |||||||||||||||||||||||
Certificates of deposit | |||||||||||||||||||||||
Foreign government agency securities | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total available for sale securities | |||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||
Equity and bond mutual funds | |||||||||||||||||||||||
U.S. Government securities | |||||||||||||||||||||||
State and municipal debt obligations | |||||||||||||||||||||||
Equity, corporate debt, and other securities | |||||||||||||||||||||||
Total other assets | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
December 31, 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 | |||||||||||||||||||||||
Available for sale securities: | |||||||||||||||||||||||
U.S. agency mortgage-backed securities | |||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||
Asset-backed securities | |||||||||||||||||||||||
U.S. Treasury securities | |||||||||||||||||||||||
Certificates of deposit | |||||||||||||||||||||||
Commercial paper | |||||||||||||||||||||||
Non-agency commercial mortgage-backed securities | |||||||||||||||||||||||
Total available for sale securities | |||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||
Equity and bond mutual funds | |||||||||||||||||||||||
U.S. Government securities | |||||||||||||||||||||||
State and municipal debt obligations | |||||||||||||||||||||||
Equity, corporate debt, and other securities | |||||||||||||||||||||||
Total other assets | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
September 30, 2020 | 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 brokerage clients — net | |||||||||||||||||||||||||||||
Bank loans — net: | |||||||||||||||||||||||||||||
First Mortgages | |||||||||||||||||||||||||||||
HELOCs | |||||||||||||||||||||||||||||
Pledged asset lines | |||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Total bank loans — net | |||||||||||||||||||||||||||||
Other assets | |||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Bank deposits | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Payables to brokerage clients | |||||||||||||||||||||||||||||
Accrued expenses and other liabilities | |||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||
December 31, 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 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 | |||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Bank deposits | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Payables to brokerage clients | |||||||||||||||||||||||||||||
Accrued expenses and other liabilities | |||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||
Liquidation Preference Per Share | Dividend Rate in Effect at September 30, 2020 | Earliest Redemption Date | Date at Which Dividend Rate Becomes Floating or Resets | Floating Annual Rate of Three-Month LIBOR/ Term Five-Year Treasury plus (2): | ||||||||||||||||||||||||||||
Shares Issued and Outstanding (in thousands) at | Carrying Value at | |||||||||||||||||||||||||||||||
September 30, 2020 (1) | December 31, 2019 (1) | September 30, 2020 | December 31, 2019 | 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/Fixed-rate reset: | ||||||||||||||||||||||||||||||||
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 | % | |||||||||||||||||||||||||||
Series G | 04/30/20 | % | 06/01/25 | 06/01/25 | % | |||||||||||||||||||||||||||
Total preferred stock | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
Total Declared | Per Share Amount | Total Declared | Per Share Amount | Total Declared | Per Share Amount | Total Declared | Per Share Amount | |||||||||||||||||||||||||||||||||||||||||||
Series A | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Series C | ||||||||||||||||||||||||||||||||||||||||||||||||||
Series D | ||||||||||||||||||||||||||||||||||||||||||||||||||
Series E | ||||||||||||||||||||||||||||||||||||||||||||||||||
Series F | ||||||||||||||||||||||||||||||||||||||||||||||||||
Series G (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Three Months Ended September 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) | $ | $ | ( | $ | $ | $ | ( | $ |
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Nine Months Ended September 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 | |||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | $ | $ | ( | $ | $ | $ | ( | $ |
Total AOCI | |||||
Balance at June 30, 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 September 30, 2019 | $ | ||||
Balance at June 30, 2020 | $ | ||||
Available for sale securities: | |||||
Net unrealized gain (loss), excluding transfers to available for sale from held to maturity | |||||
Other reclassifications included in other revenue | ( | ||||
Balance at September 30, 2020 | $ |
Total AOCI | |||||
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 September 30, 2019 | $ | ||||
Balance at December 31, 2019 | $ | ||||
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 (2) | |||||
Other reclassifications included in other revenue | ( | ||||
Other | |||||
Balance at September 30, 2020 | $ |
Actual (1) | Minimum to be Well Capitalized | Minimum Capital Requirement | ||||||||||||||||||||||||||||||||||||
September 30, 2020 | 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 | % | 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 | % | N/A | N/A | % | ||||||||||||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||||||||||||||
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 | % | 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 | % | N/A | N/A | % | ||||||||||||||||||||||||||||||||||
September 30, 2020 | December 31, 2019 | |||||||||||||
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 September 30, | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||
Net Revenues | |||||||||||||||||||||||||||||||||||
Net interest revenue | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Asset management and administration fees | |||||||||||||||||||||||||||||||||||
Trading revenue (1) | |||||||||||||||||||||||||||||||||||
Other (1) | |||||||||||||||||||||||||||||||||||
Total net revenues | |||||||||||||||||||||||||||||||||||
Expenses Excluding Interest | |||||||||||||||||||||||||||||||||||
Income before taxes on income | $ | $ | $ | $ | $ | $ |
Investor Services | Advisor Services | Total | |||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||
Net Revenues | |||||||||||||||||||||||||||||||||||
Net interest revenue | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Asset management and administration fees | |||||||||||||||||||||||||||||||||||
Trading revenue (1) | |||||||||||||||||||||||||||||||||||
Other (1) | |||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||
July: | ||||||||||||||||||||||||||
Share repurchase program | — | $ | — | — | $ | 1,780 | ||||||||||||||||||||
Employee transactions (1) | 2 | $ | 33.75 | N/A | N/A | |||||||||||||||||||||
August: | ||||||||||||||||||||||||||
Share repurchase program | — | $ | — | — | $ | 1,780 | ||||||||||||||||||||
Employee transactions (1) | 2 | $ | 33.21 | N/A | N/A | |||||||||||||||||||||
September: | ||||||||||||||||||||||||||
Share repurchase program | — | $ | — | — | $ | 1,780 | ||||||||||||||||||||
Employee transactions (1) | 11 | $ | 35.84 | N/A | N/A | |||||||||||||||||||||
Total: | ||||||||||||||||||||||||||
Share repurchase program | — | $ | — | — | $ | 1,780 | ||||||||||||||||||||
Employee transactions (1) | 15 | $ | 35.22 | N/A | N/A |
Exhibit Number | Exhibit | |||||||
10.422 | ||||||||
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. | (3) | ||||||
101.SCH | Inline XBRL Taxonomy Extension Schema | (3) | ||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation | (3) | ||||||
101.DEF | Inline XBRL Extension Definition | (3) | ||||||
101.LAB | Inline XBRL Taxonomy Extension Label | (3) | ||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation | (3) | ||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |||||||
(1) | Furnished as an exhibit to this Quarterly Report on Form 10-Q. | |||||||
(2) | Management contract or compensatory plan. | |||||||
(3) | Attached as Exhibit 101 to this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020 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: | November 9, 2020 | /s/ Peter Crawford | |||||||||
Peter Crawford | |||||||||||
Executive Vice President and Chief Financial Officer |
Name of Recipient: | <first_name> <last_name> | ||||
Total Number of Shares Granted: | <shares_awarded> | ||||
Exercise Price per Share: | <award_price> | ||||
Grant Date: | <award_date> | ||||
Expiration Date: | <expire_date> | ||||
Vesting Schedule: | So long as you continue as a non-employee director on the Board of Directors of Schwab (“Board”) or the board of a subsidiary of Schwab or an employee of Schwab or its subsidiaries and subject to the terms of the Stock Option Agreement, you will acquire the right to exercise this option (become "vested" in this option) on the following dates and in the following amounts: | ||||
Number of Options on Vesting Date: <vesting_schedule> |
Tax Treatment | This option is a non-qualified stock option and is not intended to qualify as an incentive stock option under federal tax laws. | ||||
Vesting | This option becomes vested in installments as described in the Notice of Non-Employee Director Retainer Stock Option Grant. If you become a common-law employee of The Charles Schwab Corporation (“Schwab”) Schwab or its subsidiaries, then this option will continue to vest as described in the Notice of Non-Employee Director Retainer Stock Option Grant so long as you continue as either a non-employee director or an employee of Schwab or its subsidiaries. | ||||
Accelerated Vesting | This option will become fully exercisable if your service as a non-employee director terminates on account of your death, disability or retirement. If, prior to the date your service terminates, Schwab is subject to a “change in control” (as defined in [The Charles Schwab Corporation 2013 Stock Incentive Plan] (the “Plan”) document), this option will become fully exercisable immediately preceding the change in control. If the Compensation Committee (the “Compensation Committee”) of the Board of Directors (the “Board”) of Schwab determines that a change in control is likely to occur, Schwab will advise you and this option will become fully exercisable as of the date 10 days prior to the anticipated date of the change in control. | ||||
Definition of Disability | For all purposes of this Agreement, "disability" means that 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 Retirement | For all purposes of this Agreement, "retirement" means your resignation or removal from the Board or the board of a subsidiary of Schwab at any time after you have attained age 70 or completed 5 continuous years of service as a non-employee director on the Board and/or the board of a subsidiary of Schwab. Serving simultaneously for a year on the Board and the board of a subsidiary of Schwab is counted as one year total for purposes of determining years of service. If you serve on the Board and the board of a subsidiary of Schwab, you must leave both boards to qualify for retirement. | ||||
Exercise Procedures | You or your representative may exercise this option by following the procedures prescribed by Schwab. If this option is being exercised by your representative, your representative must furnish proof satisfactory to Schwab of your representative's right to exercise this option. After completing the prescribed procedures, Schwab will cause to be issued the shares of common stock of Schwab (“Shares”) purchased, which will be registered in the name of the person exercising this option. |
Forms of Payment | When you submit your notice of exercise, you must pay the option exercise price for the Shares you are purchasing. Payment may be made in one of the following forms: | ||||
•Cash in your Schwab brokerage account in an amount sufficient to cover the option exercise price of the Shares and the required tax withholding (this exercise method is sometimes referred to as “Exercise and Hold”). •Shares surrendered to Schwab. These Shares will be valued at their fair market value on the date when the new Shares are purchased. (This exercise method is sometimes referred to as a “Stock Swap.”) •By delivery (in a manner prescribed by Schwab) of an irrevocable direction to Charles Schwab & Co., Inc. to sell Shares (including Shares to be issued upon exercise of this option) and to deliver all or part of the sale proceeds to Schwab in payment of all or part of the exercise price. (This exercise method is sometimes referred to as “Exercise and Sell” or “Sell to Cover.”) | |||||
Term | This option expires no later than the 10th anniversary of the Grant Date but may expire earlier upon your termination of service, as described below. | ||||
Termination of Service as a Non-Employee Director | This option will expire on the date three months following the date of your termination of service as a non-employee director if such service terminates for any reason other than on account of becoming a common-law employee of Schwab or its subsidiaries, death, disability or retirement. The terms “disability” and “retirement” are defined above. If you become an employee of Schwab or its subsidiaries, this option will expire on the date three months following the date you cease to be an employee of Schwab and its subsidiaries (other than by reason of disability, death or retirement). If you cease to be a non-employee director or an employee of Schwab and its subsidiaries by reason of your disability or death, then this option will expire on the first anniversary of the date of your death or disability. If you cease to be a non-employee director by reason of your retirement, then this option will expire on the 10th anniversary of the Grant Date. | ||||
Withholding Taxes and Stock Withholding | You will not be allowed to exercise this option unless you make arrangements acceptable to Schwab to pay any applicable withholding of income and employment taxes that may be due as a result of the option exercise. 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 (“withholding taxes”), is and remains your responsibility and may exceed the amount, if any, actually withheld by Schwab. | ||||
Restrictions on Exercise and Issuance or Transfer of Shares | You cannot exercise this option and no Shares may be issued under this option if the issuance of Shares at that time would violate any applicable law, regulation, or rule. Schwab may impose restrictions upon the sale, pledge, or other transfer of Shares (including the placement of appropriate legends on stock certificates) if, in the judgment of Schwab and its counsel, such restrictions are necessary or desirable to comply with applicable law, regulations, or rules. | ||||
No Stockholder Rights | You, or your estate or heirs, have no rights as a stockholder of Schwab until you have exercised this option by giving the required notice to Schwab and paying the exercise price. No adjustments are made for dividends or other rights if the applicable record date occurs before you exercise this option, except as described in the Plan. | ||||
No Right to Remain Director or Employee | Nothing in this Agreement will be construed as giving you the right to be retained as a director or an employee of Schwab and its subsidiaries. | ||||
Transfer of Option | In general, only you may exercise this option prior to your death. You may not assign, sell, transfer, pledge, encumber, or otherwise dispose of this option, except as provided below. For instance, you may not sell this option or use it as security for a loan. If you attempt to do any of these things, this option will immediately become invalid. You may dispose of this option in your will or in a beneficiary designation. 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 options will be exercisable by your estate. This option may not be assigned, transferred, pledged, encumbered, or otherwise disposed of in any settlement, judgment, decree or order (including approval of a property settlement agreement) that relates to the provision of child support, alimony payments, or marital property rights or domestic property rights. |
Limitation on Payments | If a payment from the Plan would constitute an excess parachute payment 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 Internal Revenue Code of 1986, as amended (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 Auditors (as defined below) in accordance with section 280G(d)(5) of the Code. | ||||
In the event that the independent auditors most recently selected by the Board (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 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. You may then elect, in your discretion, which and how much of the Payments will be eliminated or reduced (as long as after such election, the aggregate present value of the Payments equals the Reduced Amount). You will advise Schwab in writing of your election within 10 days of receipt of the notice. If you do not make such an election within the 10-day period, then Schwab may elect which and how much of the Payments will be eliminated or reduced (as long as after such election the aggregate present value of the Payments equals the Reduced Amount, and your election is consistent with any mandatory eliminations or reductions that apply under other agreements or the Plan). Schwab will notify you promptly of its election. 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 promptly as practicable following these determinations and elections, Schwab will pay or transfer to or for your benefit such amounts as are then due to you under the Plan and will promptly pay or transfer to or for your benefit in the future such amounts as become due to you under the Plan. | |||||
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, such Overpayment will be treated for all purposes as a loan to you that you will repay 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. | |||||
Plan Administration | The Plan administrator has discretionary authority to make all determinations related to this grant and to construe the terms of the Plan 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 Shares, the Compensation Committee shall adjust the number of Shares covered by this option and the exercise price per Share. | ||||
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 and the Plan constitute the entire understanding between you and Schwab regarding this option. Any prior agreements, commitments or negotiations concerning this option are superseded. This Agreement may be amended only by another written agreement, signed by both parties. If there is any inconsistency or conflict between any provision of this Agreement and the Plan, the terms of the Plan will control. |
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 continue as a non-employee director on the Board of Directors of Schwab (“Board”) or the board of a subsidiary of Schwab or an employee of Schwab or its subsidiaries 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 restriction below: | ||||
Number of Restricted Stock Units on Vesting Date: <vesting_schedule> |
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 Non-Employee Director Retainer Restricted Stock Unit Grant. (2) Your death. (3) Your disability. (4) Your separation from service, if the separation qualifies as a retirement. (5) A change in control. If you become a common-law employee of Schwab or a subsidiary of Schwab (“subsidiary” means a subsidiary corporation as defined in section 424(f) of the Internal Revenue Code of 1986, as amended (the “Code”)), then the Restricted Stock Units will continue to vest as described in the Notice of Non-Employee Director Retainer Restricted Stock Unit Grant so long as you continue as either a non-employee director or an employee of Schwab or its subsidiaries. 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 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. | |||||||
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. |
Definition of Retirement | For all purposes of this Agreement, "retirement" means your resignation or removal from the Board of Directors of Schwab (the “Board”) or a subsidiary of Schwab at any time after you have attained age 70 or completed 5 continuous years of service as a non-employee director on the Board and/or a subsidiary of Schwab. Serving simultaneously for a year on the Board and the board of a subsidiary of Schwab is counted as one year total for purposes of determining years of service. If you serve on the Board and the board of a subsidiary of Schwab, you must leave both boards to qualify for retirement. | |||||||
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 that qualifies as a retirement shall be distributed within 90 days of the separation from service. 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 assign, sell, transfer, pledge, encumber, 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. Restricted Stock Units may not be assigned, transferred, pledged, encumbered, or otherwise disposed of in any settlement, judgment, decree or order (including approval of a property settlement agreement) that relates to the provision of child support, alimony payments, or marital property rights or domestic property rights. | |||||||
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. | |||||||
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. 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 (“withholding taxes”), is and remains your responsibility and may exceed the amount, if any, actually withheld by Schwab. | |||||||
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 or Director | 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 Schwab 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 Schwab 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). 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 Non-Employee Director Retainer 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, the Notice of Non-Employee Director Retainer 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. |
Name of Recipient: | <first_name> <last_name> | ||||
Total Number of Shares Granted: | <shares_awarded> | ||||
Exercise Price per Share: | <award_price> | ||||
Grant Date: | <award_date> | ||||
Expiration Date: | <expire_date> | ||||
Vesting Schedule: | This option is fully vested and non-forfeitable at all times. |
Tax Treatment | This option is a non-qualified stock option and is not intended to qualify as an incentive stock option under federal tax laws. | ||||
Vesting | This option has been issued under The Charles Schwab Corporation 2013 Stock Incentive Plan (the “Plan”) pursuant to your deferral election under The Charles Schwab Corporation Directors’ Deferred Compensation Plan II (the "Deferred Compensation Plan") and is fully vested and non-forfeitable at all times. | ||||
Exercise Procedures | You or your representative may exercise this option by following the procedures prescribed by The Charles Schwab Corporation (“Schwab”). If this option is being exercised by your representative, your representative must furnish proof satisfactory to Schwab of your representative's right to exercise this option. After completing the prescribed procedures, Schwab will cause to be issued the shares of common stock of Schwab (“Shares”) purchased, which will be registered in the name of the person exercising this option. | ||||
Forms of Payment | When you submit your notice of exercise, you must pay the option exercise price for the Shares you are purchasing. Payment may be made in one of the following forms: | ||||
•Cash in your Schwab brokerage account in an amount sufficient to cover the option exercise price of the Shares and the required tax withholding (this exercise method is sometimes referred to as “Exercise and Hold”). •Shares are surrendered to Schwab. These shares will be valued at their fair market value on the date when the new Shares are purchased. (This exercise method is sometimes referred to as a “Stock Swap.”) •By delivery (in a manner prescribed by Schwab) of an irrevocable direction to Charles Schwab & Co., Inc. to sell Shares (including Shares to be issued upon exercise of this option) and to deliver all or part of the sale proceeds to Schwab in payment of all or part of the exercise price. (This exercise method is sometimes referred to as “Exercise and Sell” or “Sell to Cover.”) | |||||
Term | This option expires no later than the 10th anniversary of the Grant Date but may expire earlier upon your termination of service, as described below. |
Termination of Service as a Non-Employee Director | This option will expire on the date three months following the date of your termination of service as a non-employee director if such service terminates for any reason other than on account of becoming a common-law employee of Schwab or its subsidiaries, death, disability or retirement. The terms “disability” and “retirement” are defined below. If you become an employee of Schwab or its subsidiaries, this option will expire on the date three months following the date you cease to be an employee of Schwab and its subsidiaries (other than by reason of disability, death or retirement). If you cease to be a non-employee director or an employee of Schwab and its subsidiaries by reason of your disability or death, then this option will expire on the first anniversary of the date of your death or disability. If you cease to be a non-employee director by reason of your retirement, then this option will expire on the 10th anniversary of the Grant Date. | ||||
Definition of Disability | For all purposes of this Agreement, "disability" means that 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 Retirement | For all purposes of this Agreement, "retirement" means your resignation or removal from the Board of Directors of Schwab (“Board”) or the board of a subsidiary of Schwab at any time after you have attained age 70 or completed 5 continuous years of service as a non-employee director on the Board and/or the board of a subsidiary of Schwab. Serving simultaneously for a year on the Board and the board of a subsidiary of Schwab is counted as one year total for purposes of determining years of service. If you serve on the Board and the board of a subsidiary of Schwab, you must leave both boards to qualify for retirement. | ||||
Withholding Taxes and Stock Withholding | You will not be allowed to exercise this option unless you make arrangements acceptable to Schwab to pay any applicable withholding of income and employment taxes that may be due as a result of the option exercise. 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 (“withholding taxes”), is and remains your responsibility and may exceed the amount, if any, actually withheld by Schwab. | ||||
Restrictions on Exercise and Issuance or Transfer of Shares | You cannot exercise this option and no Shares may be issued under this option if the issuance of Shares at that time would violate any applicable law, regulation or rule. Schwab may impose restrictions upon the sale, pledge, or other transfer of Shares (including the placement of appropriate legends on stock certificates) if, in the judgment of Schwab and its counsel, such restrictions are necessary or desirable to comply with applicable law, regulations, or rules. | ||||
No Stockholder Rights | You, or your estate or heirs, have no rights as a stockholder of Schwab until you have exercised this option by giving the required notice to Schwab and paying the exercise price. No adjustments are made for dividends or other rights if the applicable record date occurs before you exercise this option, except as described in the Plan. | ||||
No Right to Remain Director or Employee | Nothing in this Agreement will be construed as giving you the right to be retained as a director or an employee of Schwab and its subsidiaries. | ||||
Transfer of Option | In general, only you may exercise this option prior to your death. You may not assign, sell, transfer, pledge, encumber, or otherwise dispose of this option, except as provided below. For instance, you may not sell this option or use it as security for a loan. If you attempt to do any of these things, this option will immediately become invalid. You may dispose of this option in your will or in a beneficiary designation. 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 options will be exercisable by your estate. This option may not be assigned, transferred, pledged, encumbered, or otherwise disposed of in any settlement, judgment, decree or order (including approval of a property settlement agreement) that relates to the provision of child support, alimony payments, or marital property rights or domestic property rights. | ||||
Plan Administration | The Plan administrator has discretionary authority to make all determinations related to this grant and to construe the terms of the Plan 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 Compensation Committee of the Board shall adjust the number of Shares covered by this option and the exercise price per Share. | ||||
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 and the Plan constitute the entire understanding between you and Schwab regarding this option. Any prior agreements, commitments or negotiations concerning this option are superseded. This Agreement may be amended only by another written agreement, signed by both parties. If there is any inconsistency or conflict between any provision of this Agreement and the Plan, the terms of the Plan will control. |
Name of Recipient: | |||||
Total Number of Restricted Stock Units Granted: | |||||
Grant Date: | |||||
Vesting Schedule: | These Restricted Stock Units are fully vested and non-forfeitable at all times. |
Vesting | These restricted stock units have been issued under The Charles Schwab Corporation 2013 Stock Incentive Plan (the “Plan”) pursuant to your deferral election under The Charles Schwab Corporation Directors’ Deferred Compensation Plan II (the "Deferred Compensation Plan") and are fully vested and non-forfeitable at all times. | ||||
Nature of Units | Your units are mere bookkeeping entries. They represent only The Charles Schwab Corporation’s (“Schwab’s”) unfunded and unsecured promise to issue shares of Schwab common stock (“Shares”) on a future date. As a holder of units, you have no rights other than the rights of a general creditor of Schwab. | ||||
Voting Rights and Dividend Equivalent Rights | Your units carry no voting or dividend rights. If Schwab pays cash dividends on Shares, any dividend equivalents paid on Restricted Stock Units shall be credited to you as additional Restricted Stock Units. Otherwise, you have no rights as a Schwab stockholder until your units are settled by issuing Shares. | ||||
Settlement of Units | Your units will be settled in accordance with the terms of the Deferred Compensation Plan. At the time of settlement, you will receive one Share for each unit. | ||||
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 distribution of the Shares. 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 (“withholding taxes”), is and remains your responsibility and may exceed the amount, if any, actually withheld by Schwab. | ||||
Other Terms and Conditions | Your units will be governed by all of the applicable terms and conditions of the Deferred Compensation Plan, which are made part of this Restricted Stock Unit Agreement (“Agreement”). | ||||
Restrictions on Restricted Stock | You may not assign, sell, transfer, pledge, encumber, or otherwise dispose of any Restricted Stock Units. Schwab will deliver Shares to you in accordance with the terms of |
Units | the Deferred Compensation Plan. Restricted Stock Units may not be assigned, transferred, pledged, encumbered, or otherwise disposed of in any settlement, judgment, decree or order (including approval of a property settlement agreement) that relates to the provision of child support, alimony payments, or marital property rights or domestic property rights. | ||||
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. | ||||
Restrictions on Resale | You agree not to sell any shares at a time when applicable laws, Schwab 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. | ||||
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 Non-Employee Director Deferred Compensation 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 Shares, the number of your units will be adjusted accordingly, as Schwab may determine pursuant to the Plan. | ||||
The Plan and Other Agreements | The text of the Plan and the Deferred Compensation Plan (the "Plans") are incorporated in this Agreement by reference. This Agreement and the Plans constitute the entire understanding between you and Schwab regarding these units. Any prior agreements, commitments or negotiations concerning these units are superseded. This Agreement may be amended only by another written agreement, signed by both parties. If there is any inconsistency or conflict between any provision of this Agreement and the Plans, the terms of the Plans will |
control. |
Date: | November 9, 2020 | /s/ Walter W. Bettinger II | |||||||||
Walter W. Bettinger II | |||||||||||
President and Chief Executive Officer |
Date: | November 9, 2020 | /s/ Peter Crawford | |||||||||
Peter Crawford | |||||||||||
Executive Vice President and Chief Financial Officer |
/s/ Walter W. Bettinger II | Date: | November 9, 2020 | |||||||||
Walter W. Bettinger II | |||||||||||
President and Chief Executive Officer |
/s/ Peter Crawford | Date: | November 9, 2020 | |||||||||
Peter Crawford | |||||||||||
Executive Vice President and Chief Financial Officer |
Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|||||||||
Net Revenues | ||||||||||||
Interest revenue | $ 1,432 | $ 1,892 | $ 4,626 | $ 5,817 | ||||||||
Interest expense | (89) | (261) | (322) | (896) | ||||||||
Net interest revenue | 1,343 | 1,631 | 4,304 | 4,921 | ||||||||
Other | [1] | 64 | 49 | 161 | 198 | |||||||
Total net revenues | 2,448 | 2,711 | 7,515 | 8,115 | ||||||||
Expenses Excluding Interest | ||||||||||||
Compensation and benefits | 840 | 857 | 2,556 | 2,514 | ||||||||
Professional services | 194 | 168 | 574 | 516 | ||||||||
Occupancy and equipment | 155 | 144 | 449 | 408 | ||||||||
Advertising and market development | 66 | 71 | 203 | 217 | ||||||||
Communications | 73 | 63 | 226 | 187 | ||||||||
Depreciation and amortization | [2] | 97 | 82 | 284 | 235 | |||||||
Amortization of acquired intangible assets | [2] | 25 | 6 | 43 | 20 | |||||||
Regulatory fees and assessments | 36 | 30 | 106 | 92 | ||||||||
Other | 73 | 54 | 250 | 190 | ||||||||
Total expenses excluding interest | 1,559 | 1,475 | 4,691 | 4,379 | ||||||||
Income before taxes on income | 889 | 1,236 | 2,824 | 3,736 | ||||||||
Taxes on income | 191 | 285 | 660 | 884 | ||||||||
Net Income | 698 | 951 | 2,164 | 2,852 | ||||||||
Preferred stock dividends and other | [3] | 83 | 38 | 171 | 127 | |||||||
Net Income Available to Common Stockholders | $ 615 | $ 913 | $ 1,993 | $ 2,725 | ||||||||
Weighted-Average Common Shares Outstanding: | ||||||||||||
Basic (shares) | 1,289 | 1,300 | 1,288 | 1,320 | ||||||||
Diluted (shares) | [4] | 1,294 | 1,308 | 1,294 | 1,329 | |||||||
Earnings Per Common Shares Outstanding: | ||||||||||||
Basic (USD per share) | $ 0.48 | $ 0.70 | $ 1.55 | $ 2.06 | ||||||||
Diluted (USD per share) | [4] | $ 0.48 | $ 0.70 | $ 1.54 | $ 2.05 | |||||||
Antidilutive stock options and restricted stock awards excluded from the calculation of diluted EPS (in shares) | 19 | 17 | 20 | 18 | ||||||||
Asset management and administration fees [Member] | ||||||||||||
Net Revenues | ||||||||||||
Asset management and administration fees and Trading revenue | $ 860 | $ 825 | $ 2,488 | $ 2,366 | ||||||||
Trading revenue [Member] | ||||||||||||
Net Revenues | ||||||||||||
Asset management and administration fees and Trading revenue | [1] | $ 181 | $ 206 | $ 562 | $ 630 | |||||||
|
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 698 | $ 951 | $ 2,164 | $ 2,852 |
Change in net unrealized gain (loss) on available for sale securities: | ||||
Net unrealized gain (loss) | 97 | 51 | 7,361 | 496 |
Other reclassifications included in other revenue | (3) | (1) | (3) | (5) |
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale | 0 | 10 | 0 | 30 |
Other | 0 | 0 | 1 | 0 |
Other comprehensive income (loss), before tax | 94 | 60 | 7,359 | 521 |
Income tax effect | (19) | (15) | (1,761) | (125) |
Other comprehensive income (loss), net of tax | 75 | 45 | 5,598 | 396 |
Comprehensive Income | $ 773 | $ 996 | $ 7,762 | $ 3,248 |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Cash and investments segregated and on deposit for regulatory purposes, resale agreements | $ 13,711 | $ 9,028 |
Available-for-sale, amortized cost | $ 296,199 | $ 61,155 |
Preferred stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, aggregate liquidation preference | $ 5,350 | $ 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) | 198,123,876 | 201,818,100 |
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] |
---|---|---|---|---|---|---|---|
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 | 2,852 | 2,852 | |||||
Other comprehensive income (loss), net of tax | 396 | 396 | |||||
Dividends declared on preferred stock | (115) | (115) | |||||
Dividends declared on common stock | (679) | (679) | |||||
Repurchase of common stock | (1,991) | (1,991) | |||||
Stock option exercises and other | 65 | (15) | 80 | ||||
Share-based compensation | 121 | 121 | |||||
Other | 35 | 35 | (13) | 13 | |||
Ending balance (shares) at Sep. 30, 2019 | 1,488 | ||||||
Ending balance at Sep. 30, 2019 | 21,354 | 2,793 | $ 15 | 4,640 | 19,374 | (5,612) | 144 |
Beginning balance at Jun. 30, 2019 | 21,320 | 2,793 | $ 15 | 4,599 | 18,680 | (4,866) | 99 |
Beginning balance (shares) at Jun. 30, 2019 | 1,488 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 951 | 951 | |||||
Other comprehensive income (loss), net of tax | 45 | 45 | |||||
Dividends declared on preferred stock | (34) | (34) | |||||
Dividends declared on common stock | (223) | (223) | |||||
Repurchase of common stock | (771) | (771) | |||||
Stock option exercises and other | 17 | (2) | 19 | ||||
Share-based compensation | 33 | 33 | |||||
Other | 16 | 10 | 0 | 6 | |||
Ending balance (shares) at Sep. 30, 2019 | 1,488 | ||||||
Ending balance at Sep. 30, 2019 | 21,354 | 2,793 | $ 15 | 4,640 | 19,374 | (5,612) | 144 |
Beginning balance at Dec. 31, 2019 | 21,745 | 2,793 | $ 15 | 4,656 | 19,960 | (5,767) | 88 |
Beginning balance (shares) at Dec. 31, 2019 | 1,488 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 2,164 | 2,164 | |||||
Other comprehensive income (loss), net of tax | 5,598 | 5,598 | |||||
Issuance of preferred stock, net | 2,470 | 2,470 | |||||
Dividends declared on preferred stock | (160) | (160) | |||||
Dividends declared on common stock | (700) | (700) | |||||
Stock option exercises and other | 35 | (13) | 48 | ||||
Share-based compensation | 123 | 123 | |||||
Other | 56 | 31 | (3) | 28 | |||
Ending balance (shares) at Sep. 30, 2020 | 1,488 | ||||||
Ending balance at Sep. 30, 2020 | 31,331 | 5,263 | $ 15 | 4,797 | 21,261 | (5,691) | 5,686 |
Beginning balance at Jun. 30, 2020 | 30,815 | 5,263 | $ 15 | 4,760 | 20,876 | (5,710) | 5,611 |
Beginning balance (shares) at Jun. 30, 2020 | 1,488 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 698 | 698 | |||||
Other comprehensive income (loss), net of tax | 75 | 75 | |||||
Dividends declared on preferred stock | (79) | (79) | |||||
Dividends declared on common stock | (234) | (234) | |||||
Stock option exercises and other | 6 | (3) | 9 | ||||
Share-based compensation | 32 | 32 | |||||
Other | 18 | 8 | 0 | 10 | |||
Ending balance (shares) at Sep. 30, 2020 | 1,488 | ||||||
Ending balance at Sep. 30, 2020 | $ 31,331 | $ 5,263 | $ 15 | $ 4,797 | $ 21,261 | $ (5,691) | $ 5,686 |
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared on common stock (USD per share) | $ 0.18 | $ 0.17 | $ 0.54 | $ 0.51 |
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions |
9 Months Ended | |||||
---|---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|||||
Cash Flows from Operating Activities | ||||||
Net income | $ 2,164 | $ 2,852 | ||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||||||
Share-based compensation | 124 | 131 | ||||
Depreciation and amortization | [1] | 284 | 235 | |||
Amortization of acquired intangible assets | [1] | 43 | 20 | |||
Premium amortization, net, on available for sale and held to maturity securities | 1,012 | 282 | ||||
Other | 250 | 127 | ||||
Net change in: | ||||||
Investments segregated and on deposit for regulatory purposes | (14,431) | (858) | ||||
Receivables from brokerage clients | (3,609) | 576 | ||||
Other assets | (556) | (742) | ||||
Payables to brokerage clients | 8,314 | 2,896 | ||||
Accrued expenses and other liabilities | 0 | (498) | ||||
Net cash provided by (used for) operating activities | (6,405) | 5,021 | ||||
Cash Flows from Investing Activities | ||||||
Purchases of available for sale securities | (146,865) | (20,744) | ||||
Proceeds from sales of available for sale securities | 2,895 | 21,710 | ||||
Principal payments on available for sale securities | 42,681 | 18,374 | ||||
Purchases of held to maturity securities | 0 | (18,861) | ||||
Principal payments on held to maturity securities | 0 | 13,653 | ||||
Net change in bank loans | (4,103) | (338) | ||||
Cash acquired in acquisition, net of cash paid | 2,756 | 0 | ||||
Purchases of equipment, office facilities, and property | (465) | (515) | ||||
Purchases of Federal Home Loan Bank stock | (12) | (2) | ||||
Purchases of Federal Reserve stock | (190) | 0 | ||||
Other investing activities | (142) | (18) | ||||
Net cash provided by (used for) investing activities | (103,445) | 13,259 | ||||
Cash Flows from Financing Activities | ||||||
Net change in bank deposits | 100,623 | (22,096) | ||||
Issuance of long-term debt | 1,089 | 593 | ||||
Repayment of long-term debt | (700) | 0 | ||||
Net proceeds from preferred stock offerings | 2,470 | 0 | ||||
Dividends paid | (874) | (808) | ||||
Proceeds from stock options exercised | 35 | 65 | ||||
Repurchases of common stock | 0 | (1,964) | ||||
Other financing activities | (8) | (13) | ||||
Net cash provided by (used for) financing activities | 102,635 | (24,223) | ||||
Increase (Decrease) in Cash and Cash Equivalents, including Amounts Restricted | (7,215) | (5,943) | ||||
Cash and Cash Equivalents, including Amounts Restricted at Beginning of Period | 45,577 | 38,227 | ||||
Cash and Cash Equivalents, including Amounts Restricted at End of Period | [2] | 38,362 | 32,284 | |||
Non-cash investing activity: | ||||||
Securities transferred from held to maturity to available for sale, at fair value | 136,099 | 8,771 | ||||
Additions of equipment, office facilities, and property | 76 | 29 | ||||
Non-cash financing activity: | ||||||
Extinguishment of finance lease obligation through an assignment agreement | 0 | 52 | ||||
Common stock repurchased during the period but settled after period end | 0 | 27 | ||||
Cash paid during the period for: | ||||||
Interest | 361 | 922 | ||||
Income taxes | 609 | 907 | ||||
Amounts included in the measurement of lease liabilities | 113 | 99 | ||||
Leased assets obtained in exchange for new operating lease liabilities | $ 152 | $ 87 | ||||
|
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions |
Sep. 30, 2020 |
Sep. 30, 2019 |
||
---|---|---|---|---|
Reconciliation of cash, cash equivalents and amounts reported within the balance sheet | ||||
Cash and cash equivalents | [1] | $ 27,465 | $ 20,252 | |
Restricted cash and cash equivalents amounts included in cash and investments segregated and on deposit for regulatory purposes | [1] | 10,897 | 12,032 | |
Total cash and cash equivalents, including amounts restricted shown in the statement of cash flows | [1] | $ 38,362 | $ 32,284 | |
|
Introduction and Basis of Presentation |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
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. Unless otherwise indicated, the terms “Schwab,” “the Company,” “we,” “us,” or “our” mean CSC together with its consolidated subsidiaries as of September 30, 2020. Principal business subsidiaries of CSC include the following: •Charles Schwab & Co., Inc. (CS&Co), a securities broker-dealer; •Charles Schwab Bank, SSB (CSB), our principal banking entity; 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™). Subsequent to September 30, 2020, the Company completed its previously announced acquisition of TD Ameritrade Holding Corporation and its consolidated subsidiaries (collectively referred to as “TD Ameritrade” or “TDA”), effective October 6, 2020. Upon completion of the acquisition, TD Ameritrade Holding Corporation (TDA Holding) became a wholly-owned subsidiary of CSC and the below became principal business subsidiaries of CSC: •TD Ameritrade, Inc., an introducing securities broker-dealer; and •TD Ameritrade Clearing, Inc. (TDAC), a securities broker-dealer that provides trade execution and clearing services on a fully-disclosed basis to TD Ameritrade, Inc. Unless otherwise noted, these condensed consolidated financial statements exclude the results of operations and financial condition of TD Ameritrade. See Notes 3 and 17 for additional information on our acquisition of TD Ameritrade. These unaudited condensed consolidated financial statements have been prepared in conformity with 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 2019 Form 10-K. Reclassifications: Certain prior period amounts have been reclassified to conform to the current period presentation. Beginning in the first quarter of 2020, order flow revenue was reclassified from other revenue to trading revenue in the condensed consolidated statements of income. Beginning in the second quarter of 2020, acquired intangible assets – net was reclassified from other assets and presented separately in the condensed consolidated balance sheets. Beginning in the third quarter of 2020, amortization of acquired intangible assets was reclassified from depreciation and amortization and presented separately in the condensed consolidated statements of income. Prior period amounts have been reclassified to reflect these changes. The significant accounting policies are included in Note 2 in the 2019 Form 10-K. There have been no significant changes to these accounting policies during the first nine months of 2020, except as described in Note 2 below.
|
Summary of Significant Accounting Policies |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Changes and Error Corrections [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Cash and investments segregated and on deposit for regulatory purposes Pursuant to Rule 15c3-3 of the Securities Exchange Act of 1934 and other applicable regulations, Schwab maintains cash or qualified securities in segregated reserve accounts for the exclusive benefit of clients. Cash and investments segregated and on deposit for regulatory purposes include resale agreements, which are collateralized by U.S. Government and agency securities. Resale agreements are accounted for as collateralized financing transactions that are recorded at their contractual amounts plus accrued interest. The Company obtains collateral with a market value equal to or in excess of the principal amount loaned and accrued interest under resale agreements. Collateral is valued daily by the Company, with additional collateral obtained to ensure full collateralization. Cash and investments segregated also include certificates of deposit and U.S. Government securities. Certificates of deposit and U.S. Government securities are recorded at fair value. Schwab applies the practical expedient based on collateral maintenance provisions under Accounting Standards Codification (ASC) 326, Financial Instruments – Credit Losses, in estimating an allowance for credit losses for resale agreements. This practical expedient can be applied for financial assets with collateral maintenance provisions requiring the borrower to continually adjust the amount of the collateral securing the financial assets as a result of fair value changes in the collateral. In accordance with the practical expedient, when the Company reasonably expects that borrowers (or counterparties, as applicable) will replenish the collateral as required, there is no expectation of credit losses when the collateral’s fair value is greater than the amortized cost of the financial asset. If the amortized cost exceeds the fair value of collateral, then credit losses are estimated only on the unsecured portion. Receivables from brokerage clients Receivables from brokerage clients include margin loans to securities brokerage clients and other trading receivables from clients. Margin loans are collateralized by client securities and are carried at the amount receivable, net of an allowance for credit losses. Collateral is required to be maintained at specified minimum levels at all times. The Company monitors margin levels and requires clients to provide additional collateral, or reduce margin positions, to meet minimum collateral requirements if the fair value of the collateral changes. Schwab applies the practical expedient based on collateral maintenance provisions in estimating an allowance for credit losses for margin loans. An allowance for credit losses on unsecured or partially secured receivables from brokerage clients is estimated based on the aging of those receivables. Unsecured balances due to confirmed fraud are reserved immediately. The Company’s policy is to charge off any delinquent margin loans, including the accrued interest on such loans, no later than at 90 days past due. Accrued interest charged off is recognized as credit loss expense and is included in other expenses in the condensed consolidated statements of income. Clients with margin loans have agreed to allow Schwab to pledge collateralized securities in accordance with federal regulations. The collateral is not reflected in the consolidated financial statements. The allowance for credit losses for receivables from brokerage clients and related activity were immaterial for all periods presented. AFS investment securities AFS investment securities are recorded at fair value and unrealized gains and losses, other than losses related to credit factors, are reported, net of taxes, in AOCI included in stockholders’ equity. Realized gains and losses from sales of AFS investment securities are determined on a specific identification basis and are included in other revenue. An AFS investment security is impaired if the fair value of the security is less than its amortized cost basis. Management evaluates AFS debt investment securities with unrealized losses to determine whether the security impairment has resulted from a credit loss or other factors. This evaluation is performed quarterly on an individual security basis. The evaluation of whether credit loss exists is inherently judgmental. This evaluation considers multiple factors including: the financial condition of the issuer; the payment structure of the security; external credit ratings; our internal credit ratings; the security’s market implied credit spread; for asset-backed securities, the amount of credit support provided by the structure of the security to absorb credit losses on the underlying collateral; recent events specific to the issuer and the issuer’s industry; and whether all scheduled principal and interest payments have been received. If management determines that the impairment of an AFS debt investment security (or a portion of the impairment) is related to credit losses, an allowance for credit losses will be recorded for that security through a charge to earnings. The allowance for credit losses is measured as the difference between the amortized cost and the present value of expected cash flows and is limited to the difference between amortized cost and the fair value of the security. The Company estimates credit losses on a discounted cash flow basis using the security’s effective interest rate. Changes in the allowance for credit losses will be recorded through earnings in the period of the change. If it is determined that the Company intends to sell the impaired security or if it is more likely than not that the Company will be required to sell such security before any anticipated recovery of the amortized cost basis, any allowance for credit losses of that security will be written off and the amortized cost basis of the security will be written down to fair value with any incremental impairment recorded through earnings. The Company excludes accrued interest from the fair value and the amortized cost basis of the AFS debt investment securities for the purposes of identifying and measuring impairment of the securities. AFS debt investment securities are placed on nonaccrual status on a timely basis and any accrued interest receivable is reversed through interest income. Securities borrowed and securities loaned Securities borrowed transactions require Schwab to deliver cash to the lender in exchange for securities; the receivables from these transactions are included in other assets on the condensed consolidated balance sheets. For securities loaned, Schwab receives collateral in the form of cash in an amount equal to or greater than the market value of securities loaned; the payables from these transactions are included in accrued expenses and other liabilities on the condensed consolidated balance sheets. The market value of securities borrowed and loaned are monitored, with additional collateral obtained or refunded to ensure full collateralization. Fees received or paid are recorded in interest revenue or interest expense. Schwab applies the practical expedient based on collateral maintenance provisions in estimating an allowance for credit losses for securities borrowed receivables. Bank loans and related allowance for credit losses Bank loans are recorded at their contractual principal amounts and include unamortized direct origination costs or net purchase discounts or premiums. Direct origination costs and premiums and discounts are recognized in interest revenue using the effective interest method over the contractual life of the loan and are adjusted for actual prepayments. Additionally, management estimates an allowance for credit losses, which is deducted from the amortized cost basis of loans to arrive at the amount expected to be collected. The bank loan portfolio includes three portfolio segments: residential real estate, pledged asset lines (PALs), and other loans. We use these segments when developing and documenting our methodology for determining the allowance for credit losses. Residential real estate portfolio segment is divided into two classes of financing receivables for purposes of monitoring and assessing credit risk: First Mortgages and HELOCs. Schwab records an allowance for credit losses through a charge to earnings based on our estimate of current expected credit losses for the existing portfolio. We review the allowance for credit losses quarterly, taking into consideration current economic conditions, reasonable and supportable forecasts, the composition of the existing loan portfolio, past loss experience, and any other risks inherent in the portfolio to ensure that the allowance for credit losses is maintained at an appropriate level. PALs are collateralized by marketable securities with liquid markets. Credit lines are over-collateralized and borrowers are required to maintain collateral at specified levels at all times. The required collateral levels are determined based on the type of security pledged. Additionally, collateral market value is monitored on a daily basis and a borrower’s credit line may be reduced or collateral may be liquidated if the collateral is in danger of falling below specified levels. As such, the credit loss inherent within this portfolio is limited. Schwab applies the practical expedient based on collateral maintenance provisions in estimating an allowance for credit losses for PALs. The methodology to establish an allowance for credit losses for residential real estate portfolio segment utilizes statistical models that estimate prepayments, defaults, and expected losses for this portfolio segment based on predicted behavior of individual loans within the segment. The methodology also evaluates concentrations in the classes of financing receivables, including loan products within those classes, year of origination, and geographical distribution of collateral. Expected credit losses are forecast using a loan-level simulation of the delinquency status of the loans over the term of the loans. The simulation starts with the current relevant risk indicators, including the current delinquent status of each loan, the estimated current LTV ratio (Estimated Current LTV) of each loan, the term and structure of each loan, current key interest rates including U.S. Treasury and LIBOR rates, and borrower FICO scores. The more significant variables in the simulation include delinquency roll rates, loss severity, housing prices, interest rates, and unemployment rate. Delinquency roll rates (i.e., the rates at which loans transition through delinquency stages and ultimately result in a loss) are estimated from our historical loss experience adjusted for current trends and market information, which includes current and forecast conditions. Loss severity (i.e., loss given default) estimates are based on our historical loss experience and market trends, both current and forecast. The loss severity estimate used in the allowance for credit loss methodology for HELOCs is higher than that used in the methodology for First Mortgages. Housing price trends are derived from historical home price indices and econometric forecasts of future home values. Factors affecting the home price index include housing inventory, unemployment, interest rates, and inflation expectations. Interest rate projections are based on the current term structure of interest rates and historical volatilities to project various possible future interest rate paths. The unemployment rate forecast is typically based on the recent consensus of regularly published economic surveys. Linear interpolation is applied to revert to long-term trends after the reasonable and supportable forecast period. The methodology described above results in loss factors that are applied to the amortized cost basis of loans, exclusive of accrued interest receivable, to determine the allowance for credit losses for First Mortgages and HELOCs. Management also estimates a liability for expected credit losses on the Company’s commitments to extend credit related to unused HELOCs and commitments to purchase first mortgages. See Note 10 for additional information on these commitments. The liability is calculated by applying the loss factors described above to the commitments expected to be funded and is included in accrued expenses and other liabilities on the condensed consolidated balance sheets. The liability for expected credit losses on these commitments and related activity were immaterial for all periods presented. Schwab considers loan modifications in which it makes an economic concession to a borrower experiencing financial difficulty to be troubled debt restructurings (TDRs). Nonaccrual and Nonperforming loans First Mortgages, HELOCs, PALs, and other loans are considered past due when a payment is due and unpaid for 30 days. Loans are placed on nonaccrual status upon becoming 90 days past due as to interest or principal (unless the loans are well-secured and in the process of collection), or when the full timely collection of interest or principal becomes uncertain, including loans to borrowers who have filed for bankruptcy. HELOC loans secured by a second lien are placed on non-accrual status if the associated first lien is 90 days or more delinquent, regardless of the payment status of the HELOC. When a loan is placed on nonaccrual status, the accrued interest receivable is written off by reversing interest income and the loan is accounted for on the cash or cost recovery method until qualifying for return to accrual status. Generally, a nonaccrual loan may be returned to accrual status when all delinquent interest and principal is repaid and the borrower demonstrates a sustained period of performance, or when the loan is both well-secured and in the process of collection and collectability is no longer doubtful. Loans on nonaccrual status and other real estate owned are considered nonperforming assets. Loan Charge-Offs The Company charges off a loan in the period that it is deemed uncollectible and records a reduction in the allowance for credit losses and the loan balance. Our charge-off policy for First Mortgage and HELOC loans is to assess the value of the property when the loan has been delinquent for 180 days or has been discharged in bankruptcy proceedings, regardless of whether the property is in foreclosure, and charge-off the amount of the loan balance in excess of the estimated current value of the underlying property less estimated costs to sell. The Company’s policy for PALs is to charge off any delinquent loans no later than at 90 days past due. New Accounting Standards Adoption of New Accounting Standards
New Accounting Standards Not Yet Adopted
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Business Acquisitions |
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Business Acquisitions | Business Acquisitions TD Ameritrade Subsequent to September 30, 2020, Schwab completed its previously announced acquisition of TD Ameritrade effective October 6, 2020. As a result of the acquisition, TDA Holding became a wholly-owned subsidiary of CSC. TD Ameritrade provides securities brokerage services, including trade execution, clearing services, and margin lending, through its broker-dealer subsidiaries, and futures and foreign exchange trade execution services through its FCM and FDM subsidiary. TD Ameritrade also provides cash sweep and deposit account products through the IDA agreement, as well as bank deposit account agreements with other third-party depository institutions. The Company anticipates this transaction will add scale to help support the Company’s ongoing efforts to enhance the client experience, provide deeper resources for individual investors as well as RIAs, and continue to improve its operating efficiency. The acquisition brings together approximately $6 trillion in total client assets and 29 million brokerage accounts at the time closing. In exchange for each share of TD Ameritrade common stock, TD Ameritrade stockholders received 1.0837 shares of CSC common stock, except for TD Bank and its affiliates which received a portion in nonvoting common stock. In connection with the transaction, Schwab issued approximately 586 million common shares to TD Ameritrade stockholders consisting of approximately 509 million shares of common stock and 77 million shares of nonvoting common stock, as described below. For further details on the new class of nonvoting common stock, see Note 17. Provisional information regarding the acquisition that was available in the limited time since October 6, 2020 is provided below. Due to the timing of the close of the acquisition, certain information described in ASC 805, Business Combinations is not yet available and will be disclosed in subsequent periods. The fair value of the purchase price transferred upon completion of the acquisition included the fair value of CSC common stock and nonvoting common stock that was issued to TD Ameritrade stockholders, as well as the fair value of assumed TD Ameritrade equity awards attributable to pre-combination services. The provisional purchase price was calculated as follows:
(1) Share-based awards held by TD Ameritrade employees prior to the acquisition date were assumed by Schwab and converted into share-based awards with respect to CSC common stock, after giving effect to the exchange ratio of 1.0837. Such share-based awards are otherwise subject to the same terms and conditions as were applicable immediately before the merger, except for performance-based restricted stock units which were converted into time-based restricted stock units. The portion of the fair value of the share-based awards that relates to services performed by the employees prior to the acquisition date is included in the purchase price. The Company accounted for the TD Ameritrade acquisition as a business combination under GAAP and accordingly, the purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair values, except for certain exceptions to the recognition principle of acquisition accounting, such as leases, share-based payments, and income taxes, as of the date of acquisition. The determination of fair values requires management to make significant estimates and assumptions. The estimated fair values of the assets acquired and liabilities assumed are considered provisional and are based on currently available information. The Company believes that the information available provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed; however, these provisional estimates may be adjusted upon the availability of new information regarding facts and circumstances which existed at the acquisition date. The Company expects to finalize the valuation of assets and liabilities as soon as practicable, but not later than one year from the acquisition date. Any adjustments to the initial estimates of the fair value of the acquired assets and liabilities assumed will be recorded as adjustments to the respective assets and liabilities, with the residual amounts allocated to goodwill. The following table summarizes provisional information including the purchase price, fair values and estimates of the assets acquired and liabilities assumed, and resulting goodwill as of the October 6, 2020 acquisition date.
The provisional identifiable tangible and intangible assets of $466 million and $8.9 billion, respectively, are subject to depreciation and amortization. The following table summarizes the major classes of provisional tangible and intangible assets and their respective weighted-average estimated useful lives:
(1) Consists primarily of buildings. (2) Consists primarily of equipment and leasehold improvements. N/A Not applicable. The estimated fair values of real property, personal property, construction in progress, and land were determined using a sales comparison and cost approach, including consideration of functional and economic obsolescence. The Company estimated the weighted-average useful lives of the assets based on the current condition and expected future use of the assets. The estimated fair values of client relationships, existing technology, and trade names were estimated using a multi-period excess earnings approach, cost approach, and relief from royalty approach, respectively. The multi-period excess earnings method starts with a forecast of all of the expected future net cash flows associated with the asset, and the relief from royalty method starts with a forecast of the royalties saved by the Company because it owns the asset. The forecasts are then adjusted to present value by applying an appropriate discount rate that reflects the risks associated with the cash flow streams. The cost approach uses replacement cost as an indicator of fair value. Goodwill of $10.3 billion is primarily attributable to the scale, skill sets, operations, and synergies that can be leveraged to enable the combined company to build a stronger enterprise and will not be deductible for tax purposes. In connection with the TD Ameritrade acquisition, the Company incurred various professional fees and other costs such as advisory, legal, and accounting fees. In total, the Company incurred acquisition and integration-related costs of $42 million and $103 million for the three and nine months ended September 30, 2020, respectively, and $1 million for the nine months ended September 30, 2019, which are primarily included in professional services and compensation and benefits expense on the condensed consolidated statements of income. Upon completion of the acquisition on October 6, 2020, the Company also recognized professional services expense of $26 million for transaction advisory services received. See Notes 9, 10, 13, 15, and 17 for additional information on the TD Ameritrade acquisition. USAA-IMCO On May 26, 2020, the Company completed its acquisition of the assets of USAA-IMCO for $1.6 billion in cash. Along with the asset purchase agreement, the companies entered into a long-term referral agreement that makes Schwab the exclusive provider of wealth management and investment brokerage services for USAA members. The USAA-IMCO acquisition adds scale to the Company’s operations through the addition of over one million brokerage and managed portfolio accounts with approximately $80 billion in client assets at the acquisition date. The transaction also provides Schwab the opportunity to further expand our client base by serving USAA’s members through the long-term referral agreement. The Company accounted for the USAA-IMCO acquisition as a business combination under GAAP and accordingly, the purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair values as of the date of acquisition. The determination of fair values requires management to make significant estimates and assumptions. The estimated fair values of the assets acquired and liabilities assumed are considered provisional and are based on currently available information. The Company believes that the information available provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed; however, these provisional estimates may be adjusted upon the availability of new information regarding facts and circumstances which existed at the acquisition date. The Company expects to finalize the valuation of assets and liabilities as soon as practicable, but not later than one year from the acquisition date. During the three months ended September 30, 2020, we made a $43 million post-closing adjustment to the purchase price resulting in reductions of $9 million and $34 million to our initial estimate of the fair value of the intangible assets acquired and to goodwill, respectively. The following table summarizes the purchase price, provisional fair values of the assets acquired and liabilities assumed, and resulting goodwill as of the May 26, 2020 acquisition date, adjusted for the post-closing adjustments described above.
The provisional identifiable intangible assets of $1.1 billion are subject to amortization. The following table summarizes the major classes of intangible assets acquired and their respective weighted-average estimated useful lives.
(1) The brokerage referral agreement has an initial term of 5 years and is automatically renewable for -year increments thereafter. The estimated fair values of customer relationships, the brokerage referral agreement, and the royalty-free license were estimated using the multi-period excess earnings, with-and-without, and relief from royalty methods, respectively. The multi-period excess earnings method starts with a forecast of all of the expected future net cash flows associated with the asset, and the relief from royalty method starts with a forecast of the royalties saved by the Company because it owns the asset. The with-and-without method quantifies the difference between forecasted cash flows with the asset and without the asset. The forecasts are then adjusted to present value by applying an appropriate discount rate that reflects the risks associated with the cash flow streams. Goodwill recorded of $472 million, primarily attributable to the additional scale and anticipated synergies from the USAA-IMCO acquisition, was assigned to the Investor Services segment and will be deductible for tax purposes. The Company’s condensed consolidated statements of income include total net revenues and net loss attributable to the USAA-IMCO acquisition of $99 million and $4 million, respectively, for the three months ended September 30, 2020 and $138 million and $41 million, respectively, for the period May 26, 2020 through September 30, 2020. In connection with the acquisition, the Company agreed to reimburse USAA for certain contract termination fees and severance costs incurred by USAA. These costs totaled $20 million, after post-closing adjustments, for the nine months ended September 30, 2020 and are included in other expense on the condensed consolidated statements of income. Additionally, the Company incurred various professional fees and other costs related to the USAA-IMCO acquisition, such as advisory, legal, and accounting fees. In total, the Company incurred acquisition and integration-related costs of $4 million for the three months ended September 30, 2019, and $52 million and $7 million, after post-closing adjustments, for the nine months ended September 30, 2020 and 2019, respectively, which are primarily included in other expense, compensation and benefits, and professional services on the condensed consolidated statements of income. Acquisition and integration-related costs for the three months ended September 30, 2020 were immaterial. Pro Forma Financial Information (Unaudited) The following table presents unaudited pro forma financial information as if the USAA-IMCO acquisition had occurred on January 1, 2019. The unaudited pro forma results reflect adjustments for acquisition and integration-related costs, amortization of acquired intangible assets, and their related income tax effects, and do not reflect potential revenue growth or cost savings that may be realized as a result of the acquisition. Pro forma net income for the nine months ended September 30, 2020 excludes after-tax acquisition and integration-related costs of $39 million. These costs, and after-tax acquisition and integration-related costs of $10 million incurred in 2019, are included in pro forma net income for the nine months ended September 30, 2019. The unaudited pro forma financial information is presented for informational purposes only, and is not necessarily indicative of future operations or results had the USAA-IMCO acquisition been completed as of January 1, 2019.
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Revenue Recognition |
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Revenue Recognition | Revenue Recognition Disaggregated Revenue Disaggregation of Schwab’s revenue by major source is as follows:
(1) Beginning in the first quarter of 2020, order flow revenue was reclassified from other revenue to trading revenue. Prior period amounts have been reclassified 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 ASC 606, Revenue From Contracts With Customers (ASC 606) were $357 million at September 30, 2020 and $356 million at December 31, 2019 and were recorded in other assets on the condensed consolidated balance sheets. Schwab did not have any other significant contract assets or contract liability balances as of September 30, 2020 or December 31, 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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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Investment Securities The amortized cost, gross unrealized gains and losses, and fair value of the Company’s investment securities are as follows:
(1) Approximately 49% and 43% of asset-backed securities held as of September 30, 2020 and December 31, 2019, respectively, were Federal Family Education Loan Program Asset-Backed Securities. Asset-backed securities collateralized by credit card receivables represented approximately 37% and 42% of the asset-backed securities held as of September 30, 2020 and December 31, 2019, respectively. (2) As of September 30, 2020 approximately 47% of the total AFS, and as of December 31, 2019 approximately 32%, of the total AFS and HTM investments in corporate debt securities and commercial paper were issued by institutions in the financial services industry. (3) Included in cash and cash equivalents on the condensed consolidated balance sheets, but excluded from this table is $2.5 billion of AFS commercial paper as of December 31, 2019 (none as of September 30, 2020). These holdings have maturities of three months or less and an aggregate market value equal to amortized cost. In October 2019, the Federal Reserve issued a final enhanced prudential standards rule, and the Federal Reserve, the Office of the Comptroller of the Currency, and the FDIC jointly issued a final regulatory capital and liquidity rule. With total consolidated assets of $294.0 billion at December 31, 2019, CSC is designated as a Category III firm pursuant to the framework established by the final rules. Accordingly, the Company opted to exclude AOCI from its regulatory capital as permitted by the regulatory capital and liquidity rule beginning January 1, 2020. In accordance with ASC 320 and as of January 1, 2020, the Company transferred all of its investment securities designated as HTM to the AFS category without tainting our intent to hold other debt securities to maturity. At the date of transfer, these securities had a total amortized cost of $134.7 billion and a total net unrealized gain of $1.4 billion. At September 30, 2020, our banking subsidiaries had pledged securities with a fair value of $36.9 billion as collateral to secure borrowing capacity on secured credit facilities with the Federal Home Loan Bank (FHLB) (see Note 9). Our banking subsidiaries also pledge investment securities as collateral to secure borrowing capacity at the Federal Reserve discount window, and had pledged securities with a fair value of $7.6 billion as collateral for this facility at September 30, 2020. The Company also pledges securities issued by federal agencies to secure certain trust deposits. The fair value of these pledged securities was $1.3 billion at September 30, 2020. Securities with unrealized losses, aggregated by category and period of continuous unrealized loss, are as follows:
At September 30, 2020, 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. For a description of management’s quarterly evaluation of AFS securities in unrealized loss positions see Note 2. No amounts were recognized as credit loss expense and no securities were written down to fair value through earnings for the nine months ended September 30, 2020. None of the Company’s AFS securities held as of September 30, 2020 had an allowance for credit losses. No amounts were recognized as OTTI in earnings or other comprehensive income during the year ended December 31, 2019, and as of December 31, 2019, Schwab did not hold any securities on which OTTI was previously recognized. The Company had $597 million of accrued interest receivable as of September 30, 2020 for AFS securities, and $471 million of accrued interest receivable for AFS and HTM securities as of December 31, 2019. These amounts are excluded from the amortized cost basis of AFS and HTM securities and included in other assets on the condensed consolidated balance sheets. There were no write-offs of accrued interest receivable on AFS securities during the nine months ended September 30, 2020, or write-offs of accrued interest receivable on AFS securities or HTM securities during the year ended December 31, 2019. In the table below, mortgage-backed securities and other asset-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 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 Credit Losses |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bank Loans and Related Allowance for Credit Losses | Bank Loans and Related Allowance for Credit Losses The composition of bank loans and delinquency analysis by portfolio segment and class of financing receivable is as follows:
(1) First Mortgages and HELOCs include unamortized premiums and discounts and direct origination costs of $75 million and $74 million at September 30, 2020 and December 31, 2019, respectively. (2) At September 30, 2020 and December 31, 2019, 45% 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 September 30, 2020 or December 31, 2019. At September 30, 2020, CSB had pledged $13.6 billion of First Mortgages and HELOCs as collateral to secure borrowing capacity on a secured credit facility with the FHLB (see Note 9). Changes in the allowance for credit losses on bank loans were as follows:
Note: Substantially all of the bank loans were collectively evaluated for impairment at December 31, 2019. (1) All PALs were fully collateralized by securities with fair values in excess of borrowings as of each period presented. Although uncertainty around the economic outlook persists due to the ongoing COVID-19 pandemic, credit quality metrics and overall performance of the bank loan portfolios remained strong. Management’s reasonable and supportable forecast period extends through 2024, with limited growth in home prices anticipated over the near term and a return to full employment not expected until 2024. During the third quarter of 2020, continued strong credit quality metrics and a modestly improved macroeconomic outlook relative to June 30, 2020 produced a stable projection of loss rates. The ACL has increased from January 1, 2020 to September 30, 2020, primarily due to growth in mortgage loan origination during the first nine months of 2020, driven by the continued low interest rate environment. A summary of bank loan-related nonperforming assets and troubled debt restructurings 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: •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). 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) for revolving HELOCs.
(1) Represents the LTV for the full line of credit (drawn and undrawn).
(1) Represents the LTV for the full line of credit (drawn and undrawn) for revolving HELOCs.
(1) Represents the LTV for the full line of credit (drawn and undrawn). At September 30, 2020, First Mortgage loans of $12.6 billion had adjustable interest rates. Substantially all of these mortgages have initial fixed interest rates for to ten years and interest rates that adjust annually thereafter. Approximately 26% of the balance of these mortgages consisted of loans with interest-only payment terms. The interest rates on approximately 76% of the balance of these interest-only loans are not scheduled to reset for or more years. Schwab’s mortgage loans do not include interest terms described as temporary introductory rates below current market rates. At September 30, 2020 and December 31, 2019, Schwab had $45 million and $46 million, respectively, of accrued interest on bank loans, which is excluded from the amortized cost basis of bank loans and included in other assets on the condensed consolidated balance sheets. 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 HELOCs converted to amortizing loans during each period presented:
The following table presents when current outstanding HELOCs will convert to amortizing loans:
At September 30, 2020, $731 million 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 September 30, 2020, the borrowers on approximately 53% 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 [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities | Variable Interest Entities As of September 30, 2020 and December 31, 2019, 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 LIHTC investments. As part of CSB’s community reinvestment initiatives, CSB invests in funds that make equity investments in multifamily affordable housing properties and 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 accounted for as loans at amortized cost, equity method investments, AFS securities, or using the adjusted cost method. Aggregate assets are included in AFS securities, bank loans – net, or other assets on the condensed consolidated balance sheets. Schwab’s maximum exposure to loss would result from the loss of the investments, including any committed amounts. CSB’s funding of these remaining commitments is dependent upon the occurrence of certain conditions, and CSB expects to pay substantially all of these commitments between 2020 and 2023. During the nine months ended September 30, 2020 and year ended December 31, 2019, Schwab did not provide or intend to provide financial or other support to the VIEs that it was not contractually required to provide.
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Bank Deposits |
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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 September 30, 2020 and December 31, 2019.
(1) Matured on July 22, 2020. Annual maturities on all long-term debt outstanding at September 30, 2020 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 September 30, 2020 and December 31, 2019, the collateral pledged provided a total borrowing capacity of $45.5 billion and $34.2 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 $47 million and $35 million at September 30, 2020 and December 31, 2019, respectively. Additionally, our banking subsidiaries have access to funding through the Federal Reserve discount window. Amounts available are dependent upon the fair value of certain investment securities that are pledged as collateral. As of September 30, 2020 and December 31, 2019, the collateral pledged provided total borrowing capacity of $7.6 billion and $8.5 billion, respectively, of which no amounts were outstanding at the end of either period. During the first quarter of 2020, CSB and CSPB became members of the Federal Reserve. As a condition of our Federal Reserve membership, we are required to hold Federal Reserve stock, which totaled $190 million at September 30, 2020. TDA Senior Notes As of October 6, 2020, the effective date of our acquisition of TD Ameritrade, TD Ameritrade’s debt outstanding was recognized at provisional fair value and with no change in existing terms. The TD Ameritrade debt outstanding on the acquisition date included $3.6 billion par value of TDA Senior Notes. These notes are unsecured obligations. TDA Holding may redeem some or all of the TDA 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 TDA Senior Notes and quarterly for the floating-rate TDA Senior Notes. The following table details the TDA Senior Notes outstanding as of October 6, 2020.
(1) The TDA Senior Notes were recorded at fair value as of the date of acquisition on October 6, 2020. See Note 3.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 $1.6 billion and $842 million during the third quarters of 2020 and 2019, respectively, and $6.5 billion and $2.0 billion during the first nine months of 2020 and 2019, respectively. CSB purchased HELOCs with commitments of $122 million and $52 million during the third quarters of 2020 and 2019, respectively, and $362 million and $180 million during the first nine months of 2020 and 2019, 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 September 30, 2020, the aggregate face amount of these LOCs totaled $15 million. There were no funds drawn under any of these LOCs at September 30, 2020. 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. At September 30, 2020, amounts posted as collateral with such clearing houses and exchanges included $242 million of U.S. Treasury securities, which are included in other assets on the condensed consolidated balance sheet. 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 are matters in which there is a reasonable possibility of a material loss, or where the matter may otherwise be of significant interest to stockholders. Unless 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 are vigorously contesting the lawsuit. TD Ameritrade Acquisition Litigation: As disclosed previously, Schwab and TD Ameritrade have been responding to a lawsuit challenging the acquisition which was filed on May 12, 2020 in the Delaware Court of Chancery (Hawkes v. Bettino et al.) on behalf of a proposed class of TD Ameritrade’s stockholders, excluding, among others, TD Bank. The complaint names as defendants each member of the TD Ameritrade board of directors at the time the acquisition was approved, as well as TD Bank and Schwab. On June 11, 2020, plaintiff dismissed a claim that had sought to enjoin voting on or consummation of the acquisition. Still pending are separate claims asserted in the complaint for breach of fiduciary duty by certain members of the TD Ameritrade board, TD Bank, and against Schwab for aiding and abetting such breaches, the allegation being that the amendment of the Insured Deposit Account Agreement TD Bank negotiated directly with Schwab allowed TD Bank to divert merger consideration from TD Ameritrade’s minority public stockholders. Plaintiff seeks to recover monetary damages, costs and attorneys’ fees. Schwab and the other defendants consider the allegations to be entirely without merit and are contesting the remaining claims in the lawsuit. Acquisition of TD Ameritrade Effective October 6, 2020, the Company acquired TD Ameritrade. The contractual obligations of TD Ameritrade at the time of acquisition are primarily comprised of the TDA Senior Notes, as detailed in Note 9. TD Ameritrade’s broker-dealer and FCM/FDM subsidiaries’ operations include the execution, settlement, and financing of various client securities, options, futures and foreign exchange transactions. These activities may expose TD Ameritrade to credit risk and losses in the event the clients are unable to fulfill their contractual obligations. Similar to Schwab, TD Ameritrade is a member of and provides guarantees to securities clearing houses and exchanges under standard membership agreements. TD Ameritrade also engages third-party firms to clear its clients’ futures and options on futures transactions and to facilitate clients’ foreign exchange trading. TD Ameritrade has agreed to indemnify these firms for any loss that they may incur from the client transactions introduced to them by TD Ameritrade. As of the effective date of the acquisition, TD Ameritrade’s legal contingencies include a variety of litigation claims and demands and regulatory investigations and other government proceedings, including, among other things, a putative class action regarding the routing of client orders as discussed below. Ford Order Routing Litigation: On September 15, 2014, TDA Holding, TD Ameritrade, Inc. and its former CEO, Frederick J. Tomczyk, were sued on behalf of a putative class of TD Ameritrade, Inc. clients alleging that defendants failed to seek best execution and made misrepresentations and omissions regarding its order routing practices. Plaintiffs seek unspecified damages and injunctive and other relief. On September 14, 2018, the District Court granted plaintiff’s motion for class certification, and defendants petitioned for an immediate appeal of the District Court’s class certification decision. The U.S. Court of Appeals, 8th Circuit, granted defendants’ petition on December 18, 2018, and a decision on defendants’ appeal is pending. Defendants are vigorously contesting the lawsuit, and the Company is unable to predict the outcome or the potential loss, if any, that may result.
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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 $503 million and $719 million at September 30, 2020 and December 31, 2019, respectively. Most of our securities lending transactions are through a program with a clearing organization, which guarantees the return of cash to us. Our securities lending transactions are 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.
(1) Included in cash and investments segregated and on deposit for regulatory purposes in the condensed consolidated balance sheets. (2) Actual collateral was greater than or equal to the value of the related assets. At September 30, 2020 and December 31, 2019, the fair value of collateral received in connection with resale agreements that are available to be repledged or sold was $13.9 billion and $9.2 billion, respectively. (3) Included in other assets in the condensed consolidated balance sheets. (4) Included in accrued expenses and other liabilities 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 September 30, 2020 and December 31, 2019. (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 collateralized 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, as well as the fair value of securities that we had pledged under such regulations and from securities borrowed transactions:
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 $162 million as of September 30, 2020 and $142 million as of December 31, 2019. (1) 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 |
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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, AFS securities, and certain other assets. 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. Quoted prices for investments in exchange-traded securities represent end-of-day close prices published by exchanges. Quoted prices for money market funds and other mutual funds represent reported net asset values. 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 in active markets 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 for our fixed income investments such as commercial paper; certificates of deposit; U.S. government and agency securities; state and municipal securities; corporate debt securities; asset-backed securities; foreign government agency securities; and non-agency commercial mortgage-backed securities. Such prices are based on observable trades, broker/dealer quotes, 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 Item 8 – Note 2 in the 2019 Form 10-K. The Company did not adjust prices received from the primary independent third-party pricing service at September 30, 2020 or December 31, 2019. 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 April 30, 2020, the Company issued and sold 2,500,000 depositary shares, each representing a 1/100th ownership interest in a share of 5.375% fixed-rate reset non-cumulative perpetual preferred stock, Series G, $0.01 par value per share, with a liquidation preference of $100,000 per share (equivalent to $1,000 per Depositary Share). The net proceeds of the offering were approximately $2.47 billion, after deducting the underwriting discount and offering expenses. On January 30, 2019, CSC publicly announced that its Board of Directors authorized a share repurchase program to repurchase up to $4.0 billion of common stock. The share repurchase authorization does not have an expiration date. There were no repurchases of CSC’s common stock under this authorization during the nine months ended September 30, 2020. During the three and nine months ended September 30, 2019, CSC repurchased 20 million and 49 million shares of its common stock under this authorization for $771 million and $2.0 billion, respectively. The Company’s preferred stock issued and outstanding is as follows:
(1) Represented by depositary shares, except for Series A. (2) The Series G dividend rate resets on each -year anniversary beginning on June 1, 2025 based on the -year Treasury rate; Series G is only redeemable on reset dates. The dividend rates for all other series of preferred stock will float based on LIBOR. N/A Not applicable. Dividends declared on the Company’s preferred stock are as follows:
(1) Series G preferred stock was issued on April 30, 2020. Dividends are paid quarterly, and the first dividend was paid on September 1, 2020. Subsequent to September 30, 2020, the Company’s acquisition of TD Ameritrade, effective October 6, 2020, resulted in significant equity issuances. Please see Notes 3 and 17 for additional information on the TD Ameritrade acquisition.
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Accumulated Other Comprehensive Income |
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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) In the first quarter of 2019, the Company made an election to transfer a portion of its HTM securities to AFS as part of its adoption of ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities”. The transfer resulted in a net of tax increase to AOCI of $19 million. (2) On January 1, 2020, the Company transferred all of its investment securities designated as HTM to the AFS category. The transfer resulted in a net of tax increase to AOCI of $1.1 billion. See Note 5 for additional discussion on the 2020 transfer of HTM securities to AFS.
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Regulatory Requirements |
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Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Requirements | Regulatory Requirements At September 30, 2020, CSC and CSB met all of their respective capital requirements. The regulatory capital and ratios for CSC (consolidated) and CSB are as follows:
(1) In the interagency regulatory capital and liquidity rules adopted in October 2019, Category III banking organizations such as CSC were given the ability to opt-out of the inclusion of AOCI in regulatory capital, and CSC made this opt-out election as of January 1, 2020. Therefore, AOCI is excluded from the amounts and ratios presented as of September 30, 2020. In 2019, CSC and CSB were required to include all components of AOCI in regulatory capital; the amounts and ratios for December 31, 2019 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 a countercyclical capital buffer above the regulatory minimum risk-based capital ratios. The capital conservation buffer and countercyclical capital buffer were 2.5% and zero percent, respectively, for both periods presented. 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 September 30, 2020, 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 September 30, 2020, CSB is considered well capitalized (the highest category) under its respective regulatory capital rules. There are no conditions or events since September 30, 2020 that management believes have changed CSB’s capital category. At September 30, 2020, the balance sheets of CSPB and Charles Schwab Trust Bank (Trust Bank) consisted primarily of investment securities, and the entities held total assets of $28.3 billion and $11.7 billion, respectively. Based on their regulatory capital ratios, at September 30, 2020, CSPB and Trust Bank are considered well capitalized under their respective regulatory capital rules. On July 1, 2020, CS&Co registered as an FCM with the CFTC. On July 26, 2020, Charles Schwab Futures, Inc., a wholly-owned subsidiary of CSC, transferred its futures business and all of its assets and liabilities to CS&Co. This transfer was accounted for as a common control transaction and did not have an impact on the condensed consolidated financial statements. Net capital and net capital requirements for CS&Co are as follows:
Pursuant to Rule 15c3-3 of the Securities Exchange Act of 1934 and other applicable regulations, Schwab had cash and investments segregated for the exclusive benefit of clients at September 30, 2020. 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 condensed consolidated statements of cash flows. Certain subsidiaries of TD Ameritrade are also subject to regulatory capital requirements, including TD Ameritrade’s principal securities broker-dealers, TD Ameritrade, Inc. and TDAC, as well as its FCM and FDM entity, TDAFF. As of October 6, 2020, the effective date of the acquisition, TD Ameritrade, Inc., TDAC, and TDAFF were in compliance with their respective regulatory capital requirements. See Notes 3 and 17 for additional information on our acquisition of TD Ameritrade.
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Segment Information |
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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 attributed 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 table:
(1) Beginning in the first quarter of 2020, order flow revenue was reclassified from other revenue to trading revenue. Prior period amounts have been reclassified to reflect this change.
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Subsequent Events |
9 Months Ended |
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Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 6, 2020, the Company completed its acquisition of TD Ameritrade, pursuant to the merger agreement. As a result of the acquisition, TDA Holding became a wholly-owned subsidiary of CSC. The Company issued approximately 586 million common shares to TD Ameritrade stockholders in the acquisition, including shares of a new, nonvoting class of CSC common stock. Immediately prior to the acquisition, on October 6, 2020, the Company amended its certificate of incorporation to create the nonvoting class of common stock with 300 million shares authorized for issuance and to increase the number of authorized shares of capital stock by the same amount. Additionally, in conjunction with the acquisition on October 6, 2020, the stockholder agreement with TD Bank, the registration rights agreement with TD Bank and Charles R. Schwab, and the amended and restated IDA agreement with the TD Depository Institutions, as further detailed in Part I – Item 1 of our 2019 Form 10-K, became effective. Under the amended IDA agreement, which replaced the previous IDA agreement between the TD Depository Institutions and TD Ameritrade, the TD Depository Institutions make available to Schwab customers FDIC-insured (up to specified limits) money market deposit accounts. Schwab provides marketing, recordkeeping and support services to the TD Depository Institutions with respect to the money market deposit accounts for which Schwab receives an aggregate monthly fee, determined by reference to certain yields, less a service fee on client cash deposits held at the TD Depository Institutions, FDIC deposit assessments, and interest on deposits paid to customers (on a net basis, the “sweep arrangement fee”). Though unlikely, in the event the sweep arrangement fee computation were to result in a negative amount in any given month, Schwab would be required to pay the TD Depository Institutions. Under the terms of the amended IDA agreement, the service fee on client cash deposits held at the TD Depository Institutions was reduced to 15 basis points from the 25 basis points paid by TD Ameritrade under its previous IDA agreement. Additionally, the previous IDA agreement had floors in place which enabled TD Ameritrade to carve-out up to $20 billion of IDA deposits designated as floating-rate investments from the applicable service fee during specified low-rate environments. Under the amended IDA agreement, the renegotiated 15 basis point rate will be applied across all designated fixed and floating IDA balances. The sweep arrangement fee received by Schwab under the amended IDA agreement, as well as bank deposit account agreements with other third-party depository institutions, will be included in a new revenue line item in our consolidated statement of income titled bank deposit account fees. Under the amended IDA agreement, there will be an initial period during which the amounts swept to the TD Depository Institutions will solely be composed of customer funds from the TD Ameritrade subsidiary broker-dealers. Following this initial period, CSC’s subsidiary broker-dealers can sweep client funds to money market deposit accounts at the TD Depository Institutions, subject to certain limits. Beginning July 1, 2021, CSC’s subsidiary broker-dealers, including the TD Ameritrade broker-dealers, will have the option to reduce deposit balances swept to the TD Depository Institutions by up to $10 billion over each 12-month period, subject to certain limits and adjustments. Such limits and adjustments include Schwab’s obligation to move all of the uninsured IDA sweep balances on July 1, 2021 to its balance sheet or to other third-party depository institutions, which will count against the optional reduction amount, and the requirement that Schwab can only move floating IDA balances. Schwab’s initial reduction will also be affected by the net change in IDA sweep balances between the effective date of the amended IDA agreement and June 30, 2021. In addition, Schwab is also required to maintain a minimum $50 billion IDA balance through June 2031 and at least 80% of the IDA balances must be designated as fixed-rate obligations through June 2026. The amended IDA agreement will have an initial expiration date of July 1, 2031, subject to automatic renewal for a -year term if not terminated by either CSC or the TD Depository Institutions two years prior to the expiration date. For further details surrounding the amended IDA agreement, see Part I – Item 1 of our 2019 Form 10-K. Pursuant to the merger agreement, CSC issued approximately 177 million shares of common stock and approximately 77 million shares of nonvoting common stock to TD Bank and its affiliates on October 6, 2020. Those shares of common stock and nonvoting common stock were issued in reliance upon an exemption from registration afforded by Section 4(a)(2) of the Securities Act. Following this issuance, TD Bank exchanged an aggregate of approximately 2 million shares of CSC common stock for an equal number of shares of CSC nonvoting common stock and held approximately 79 million shares of nonvoting common stock as of October 31, 2020. TD Bank and its affiliates are not permitted to own more than 9.9% of CSC common stock. This limit is interpreted in accordance with the applicable rules of the Federal Reserve and includes shares of CSC common stock deemed to be beneficially owned directly or indirectly by TD Bank and its affiliates. See Notes 3, 9, 10, 13, and 15 for additional information on the TD Ameritrade acquisition.
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Summary of Significant Accounting Policies (Policy) |
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Accounting Changes and Error Corrections [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | These unaudited condensed consolidated financial statements have been prepared in conformity with 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 2019 Form 10-K.
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Reclassifications | Reclassifications: Certain prior period amounts have been reclassified to conform to the current period presentation. Beginning in the first quarter of 2020, order flow revenue was reclassified from other revenue to trading revenue in the condensed consolidated statements of income. Beginning in the second quarter of 2020, acquired intangible assets – net was reclassified from other assets and presented separately in the condensed consolidated balance sheets. Beginning in the third quarter of 2020, amortization of acquired intangible assets was reclassified from depreciation and amortization and presented separately in the condensed consolidated statements of income. Prior period amounts have been reclassified to reflect these changes. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Loss, Financial Instrument | Cash and investments segregated and on deposit for regulatory purposes Pursuant to Rule 15c3-3 of the Securities Exchange Act of 1934 and other applicable regulations, Schwab maintains cash or qualified securities in segregated reserve accounts for the exclusive benefit of clients. Cash and investments segregated and on deposit for regulatory purposes include resale agreements, which are collateralized by U.S. Government and agency securities. Resale agreements are accounted for as collateralized financing transactions that are recorded at their contractual amounts plus accrued interest. The Company obtains collateral with a market value equal to or in excess of the principal amount loaned and accrued interest under resale agreements. Collateral is valued daily by the Company, with additional collateral obtained to ensure full collateralization. Cash and investments segregated also include certificates of deposit and U.S. Government securities. Certificates of deposit and U.S. Government securities are recorded at fair value. Schwab applies the practical expedient based on collateral maintenance provisions under Accounting Standards Codification (ASC) 326, Financial Instruments – Credit Losses, in estimating an allowance for credit losses for resale agreements. This practical expedient can be applied for financial assets with collateral maintenance provisions requiring the borrower to continually adjust the amount of the collateral securing the financial assets as a result of fair value changes in the collateral. In accordance with the practical expedient, when the Company reasonably expects that borrowers (or counterparties, as applicable) will replenish the collateral as required, there is no expectation of credit losses when the collateral’s fair value is greater than the amortized cost of the financial asset. If the amortized cost exceeds the fair value of collateral, then credit losses are estimated only on the unsecured portion. Receivables from brokerage clients Receivables from brokerage clients include margin loans to securities brokerage clients and other trading receivables from clients. Margin loans are collateralized by client securities and are carried at the amount receivable, net of an allowance for credit losses. Collateral is required to be maintained at specified minimum levels at all times. The Company monitors margin levels and requires clients to provide additional collateral, or reduce margin positions, to meet minimum collateral requirements if the fair value of the collateral changes. Schwab applies the practical expedient based on collateral maintenance provisions in estimating an allowance for credit losses for margin loans. An allowance for credit losses on unsecured or partially secured receivables from brokerage clients is estimated based on the aging of those receivables. Unsecured balances due to confirmed fraud are reserved immediately. The Company’s policy is to charge off any delinquent margin loans, including the accrued interest on such loans, no later than at 90 days past due. Accrued interest charged off is recognized as credit loss expense and is included in other expenses in the condensed consolidated statements of income. Clients with margin loans have agreed to allow Schwab to pledge collateralized securities in accordance with federal regulations. The collateral is not reflected in the consolidated financial statements. The allowance for credit losses for receivables from brokerage clients and related activity were immaterial for all periods presented. AFS investment securities AFS investment securities are recorded at fair value and unrealized gains and losses, other than losses related to credit factors, are reported, net of taxes, in AOCI included in stockholders’ equity. Realized gains and losses from sales of AFS investment securities are determined on a specific identification basis and are included in other revenue. An AFS investment security is impaired if the fair value of the security is less than its amortized cost basis. Management evaluates AFS debt investment securities with unrealized losses to determine whether the security impairment has resulted from a credit loss or other factors. This evaluation is performed quarterly on an individual security basis. The evaluation of whether credit loss exists is inherently judgmental. This evaluation considers multiple factors including: the financial condition of the issuer; the payment structure of the security; external credit ratings; our internal credit ratings; the security’s market implied credit spread; for asset-backed securities, the amount of credit support provided by the structure of the security to absorb credit losses on the underlying collateral; recent events specific to the issuer and the issuer’s industry; and whether all scheduled principal and interest payments have been received. If management determines that the impairment of an AFS debt investment security (or a portion of the impairment) is related to credit losses, an allowance for credit losses will be recorded for that security through a charge to earnings. The allowance for credit losses is measured as the difference between the amortized cost and the present value of expected cash flows and is limited to the difference between amortized cost and the fair value of the security. The Company estimates credit losses on a discounted cash flow basis using the security’s effective interest rate. Changes in the allowance for credit losses will be recorded through earnings in the period of the change. If it is determined that the Company intends to sell the impaired security or if it is more likely than not that the Company will be required to sell such security before any anticipated recovery of the amortized cost basis, any allowance for credit losses of that security will be written off and the amortized cost basis of the security will be written down to fair value with any incremental impairment recorded through earnings. The Company excludes accrued interest from the fair value and the amortized cost basis of the AFS debt investment securities for the purposes of identifying and measuring impairment of the securities. AFS debt investment securities are placed on nonaccrual status on a timely basis and any accrued interest receivable is reversed through interest income. Securities borrowed and securities loaned Securities borrowed transactions require Schwab to deliver cash to the lender in exchange for securities; the receivables from these transactions are included in other assets on the condensed consolidated balance sheets. For securities loaned, Schwab receives collateral in the form of cash in an amount equal to or greater than the market value of securities loaned; the payables from these transactions are included in accrued expenses and other liabilities on the condensed consolidated balance sheets. The market value of securities borrowed and loaned are monitored, with additional collateral obtained or refunded to ensure full collateralization. Fees received or paid are recorded in interest revenue or interest expense. Schwab applies the practical expedient based on collateral maintenance provisions in estimating an allowance for credit losses for securities borrowed receivables. Bank loans and related allowance for credit losses Bank loans are recorded at their contractual principal amounts and include unamortized direct origination costs or net purchase discounts or premiums. Direct origination costs and premiums and discounts are recognized in interest revenue using the effective interest method over the contractual life of the loan and are adjusted for actual prepayments. Additionally, management estimates an allowance for credit losses, which is deducted from the amortized cost basis of loans to arrive at the amount expected to be collected. The bank loan portfolio includes three portfolio segments: residential real estate, pledged asset lines (PALs), and other loans. We use these segments when developing and documenting our methodology for determining the allowance for credit losses. Residential real estate portfolio segment is divided into two classes of financing receivables for purposes of monitoring and assessing credit risk: First Mortgages and HELOCs. Schwab records an allowance for credit losses through a charge to earnings based on our estimate of current expected credit losses for the existing portfolio. We review the allowance for credit losses quarterly, taking into consideration current economic conditions, reasonable and supportable forecasts, the composition of the existing loan portfolio, past loss experience, and any other risks inherent in the portfolio to ensure that the allowance for credit losses is maintained at an appropriate level. PALs are collateralized by marketable securities with liquid markets. Credit lines are over-collateralized and borrowers are required to maintain collateral at specified levels at all times. The required collateral levels are determined based on the type of security pledged. Additionally, collateral market value is monitored on a daily basis and a borrower’s credit line may be reduced or collateral may be liquidated if the collateral is in danger of falling below specified levels. As such, the credit loss inherent within this portfolio is limited. Schwab applies the practical expedient based on collateral maintenance provisions in estimating an allowance for credit losses for PALs. The methodology to establish an allowance for credit losses for residential real estate portfolio segment utilizes statistical models that estimate prepayments, defaults, and expected losses for this portfolio segment based on predicted behavior of individual loans within the segment. The methodology also evaluates concentrations in the classes of financing receivables, including loan products within those classes, year of origination, and geographical distribution of collateral. Expected credit losses are forecast using a loan-level simulation of the delinquency status of the loans over the term of the loans. The simulation starts with the current relevant risk indicators, including the current delinquent status of each loan, the estimated current LTV ratio (Estimated Current LTV) of each loan, the term and structure of each loan, current key interest rates including U.S. Treasury and LIBOR rates, and borrower FICO scores. The more significant variables in the simulation include delinquency roll rates, loss severity, housing prices, interest rates, and unemployment rate. Delinquency roll rates (i.e., the rates at which loans transition through delinquency stages and ultimately result in a loss) are estimated from our historical loss experience adjusted for current trends and market information, which includes current and forecast conditions. Loss severity (i.e., loss given default) estimates are based on our historical loss experience and market trends, both current and forecast. The loss severity estimate used in the allowance for credit loss methodology for HELOCs is higher than that used in the methodology for First Mortgages. Housing price trends are derived from historical home price indices and econometric forecasts of future home values. Factors affecting the home price index include housing inventory, unemployment, interest rates, and inflation expectations. Interest rate projections are based on the current term structure of interest rates and historical volatilities to project various possible future interest rate paths. The unemployment rate forecast is typically based on the recent consensus of regularly published economic surveys. Linear interpolation is applied to revert to long-term trends after the reasonable and supportable forecast period. The methodology described above results in loss factors that are applied to the amortized cost basis of loans, exclusive of accrued interest receivable, to determine the allowance for credit losses for First Mortgages and HELOCs. Management also estimates a liability for expected credit losses on the Company’s commitments to extend credit related to unused HELOCs and commitments to purchase first mortgages. See Note 10 for additional information on these commitments. The liability is calculated by applying the loss factors described above to the commitments expected to be funded and is included in accrued expenses and other liabilities on the condensed consolidated balance sheets. The liability for expected credit losses on these commitments and related activity were immaterial for all periods presented. Schwab considers loan modifications in which it makes an economic concession to a borrower experiencing financial difficulty to be troubled debt restructurings (TDRs). Nonaccrual and Nonperforming loans First Mortgages, HELOCs, PALs, and other loans are considered past due when a payment is due and unpaid for 30 days. Loans are placed on nonaccrual status upon becoming 90 days past due as to interest or principal (unless the loans are well-secured and in the process of collection), or when the full timely collection of interest or principal becomes uncertain, including loans to borrowers who have filed for bankruptcy. HELOC loans secured by a second lien are placed on non-accrual status if the associated first lien is 90 days or more delinquent, regardless of the payment status of the HELOC. When a loan is placed on nonaccrual status, the accrued interest receivable is written off by reversing interest income and the loan is accounted for on the cash or cost recovery method until qualifying for return to accrual status. Generally, a nonaccrual loan may be returned to accrual status when all delinquent interest and principal is repaid and the borrower demonstrates a sustained period of performance, or when the loan is both well-secured and in the process of collection and collectability is no longer doubtful. Loans on nonaccrual status and other real estate owned are considered nonperforming assets. Loan Charge-Offs The Company charges off a loan in the period that it is deemed uncollectible and records a reduction in the allowance for credit losses and the loan balance. Our charge-off policy for First Mortgage and HELOC loans is to assess the value of the property when the loan has been delinquent for 180 days or has been discharged in bankruptcy proceedings, regardless of whether the property is in foreclosure, and charge-off the amount of the loan balance in excess of the estimated current value of the underlying property less estimated costs to sell. The Company’s policy for PALs is to charge off any delinquent loans no later than at 90 days past due.
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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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Summary of Significant Accounting Policies (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
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Business Acquisitions (Tables) |
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Schedule of Equity Interest Issued | The provisional purchase price was calculated as follows:
(1) Share-based awards held by TD Ameritrade employees prior to the acquisition date were assumed by Schwab and converted into share-based awards with respect to CSC common stock, after giving effect to the exchange ratio of 1.0837. Such share-based awards are otherwise subject to the same terms and conditions as were applicable immediately before the merger, except for performance-based restricted stock units which were converted into time-based restricted stock units. The portion of the fair value of the share-based awards that relates to services performed by the employees prior to the acquisition date is included in the purchase price.
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Schedule of Purchase Price | The following table summarizes provisional information including the purchase price, fair values and estimates of the assets acquired and liabilities assumed, and resulting goodwill as of the October 6, 2020 acquisition date.
The following table summarizes the purchase price, provisional fair values of the assets acquired and liabilities assumed, and resulting goodwill as of the May 26, 2020 acquisition date, adjusted for the post-closing adjustments described above.
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Schedule Of Tangible Assets Acquired | The following table summarizes the major classes of provisional tangible and intangible assets and their respective weighted-average estimated useful lives:
(1) Consists primarily of buildings. (2) Consists primarily of equipment and leasehold improvements. N/A Not applicable.
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Schedule of Intangible Assets Acquired | The following table summarizes the major classes of provisional tangible and intangible assets and their respective weighted-average estimated useful lives:
(1) Consists primarily of buildings. (2) Consists primarily of equipment and leasehold improvements. N/A Not applicable. The following table summarizes the major classes of intangible assets acquired and their respective weighted-average estimated useful lives.
(1) The brokerage referral agreement has an initial term of 5 years and is automatically renewable for -year increments thereafter.
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Schedule of Pro Forma Information | The unaudited pro forma financial information is presented for informational purposes only, and is not necessarily indicative of future operations or results had the USAA-IMCO acquisition been completed as of January 1, 2019.
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Revenue Recognition (Tables) |
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Disaggregation of Schwab's Revenue | Disaggregation of Schwab’s revenue by major source is as follows:
(1) Beginning in the first quarter of 2020, order flow revenue was reclassified from other revenue to trading revenue. Prior period amounts have been reclassified to reflect this change.
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Investment Securities (Tables) |
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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 the Company’s investment securities are as follows:
(1) Approximately 49% and 43% of asset-backed securities held as of September 30, 2020 and December 31, 2019, respectively, were Federal Family Education Loan Program Asset-Backed Securities. Asset-backed securities collateralized by credit card receivables represented approximately 37% and 42% of the asset-backed securities held as of September 30, 2020 and December 31, 2019, respectively. (2) As of September 30, 2020 approximately 47% of the total AFS, and as of December 31, 2019 approximately 32%, of the total AFS and HTM investments in corporate debt securities and commercial paper were issued by institutions in the financial services industry. (3) Included in cash and cash equivalents on the condensed consolidated balance sheets, but excluded from this table is $2.5 billion of AFS commercial paper as of December 31, 2019 (none as of September 30, 2020). 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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Securities with Unrealized Losses, Aggregated by Category and Period of Continuous Unrealized Loss |
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Maturities of Securities Available for Sale and Securities Held to Maturity | The maturities of AFS 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 Credit Losses (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Composition of Bank Loans and Delinquency Analysis by Loan Segment | The composition of bank loans and delinquency analysis by portfolio segment and class of financing receivable is as follows:
(1) First Mortgages and HELOCs include unamortized premiums and discounts and direct origination costs of $75 million and $74 million at September 30, 2020 and December 31, 2019, respectively. (2) At September 30, 2020 and December 31, 2019, 45% 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 September 30, 2020 or December 31, 2019.
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Changes in Allowance for Credit Losses on Bank Loans | Changes in the allowance for credit losses on bank loans were as follows:
Note: Substantially all of the bank loans were collectively evaluated for impairment at December 31, 2019. (1) All PALs were fully collateralized by securities with fair values in excess of borrowings as of each period presented.
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Bank Loan-related Nonperforming Assets and Troubled Debt Restructurings | A summary of bank loan-related nonperforming assets and troubled debt restructurings 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) for revolving HELOCs.
(1) Represents the LTV for the full line of credit (drawn and undrawn).
(1) Represents the LTV for the full line of credit (drawn and undrawn) for revolving HELOCs.
(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 HELOCs converted to amortizing loans during each period presented:
The following table presents when current outstanding HELOCs will convert to amortizing loans:
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Variable Interest Entities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 accounted for as loans at amortized cost, equity method investments, AFS securities, or using the adjusted cost method. Aggregate assets are included in AFS securities, bank loans – net, or other assets on the condensed consolidated balance sheets.
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Bank Deposits (Tables) |
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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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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt Including Unamortized Debt Discounts and Premiums | The following table lists long-term debt by instrument outstanding as of September 30, 2020 and December 31, 2019.
(1) Matured on July 22, 2020. The following table details the TDA Senior Notes outstanding as of October 6, 2020.
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Annual Maturities on Long-term Debt Outstanding | Annual maturities on all long-term debt outstanding at September 30, 2020 are as follows:
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Commitments and Contingencies (Tables) |
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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.
(1) Included in cash and investments segregated and on deposit for regulatory purposes in the condensed consolidated balance sheets. (2) Actual collateral was greater than or equal to the value of the related assets. At September 30, 2020 and December 31, 2019, the fair value of collateral received in connection with resale agreements that are available to be repledged or sold was $13.9 billion and $9.2 billion, respectively. (3) Included in other assets in the condensed consolidated balance sheets. (4) Included in accrued expenses and other liabilities 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 September 30, 2020 and December 31, 2019. (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, as well as the fair value of securities that we had pledged under such regulations and from securities borrowed transactions:
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 $162 million as of September 30, 2020 and $142 million as of December 31, 2019. (1) 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:
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Stockholders' Equity (Tables) |
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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. (2) The Series G dividend rate resets on each -year anniversary beginning on June 1, 2025 based on the -year Treasury rate; Series G is only redeemable on reset dates. The dividend rates for all other series of preferred stock will float based on LIBOR. N/A Not applicable.
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Dividends Declared | Dividends declared on the Company’s preferred stock are as follows:
(1) Series G preferred stock was issued on April 30, 2020. Dividends are paid quarterly, and the first dividend was paid on September 1, 2020.
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Accumulated Other Comprehensive Income (Tables) |
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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) In the first quarter of 2019, the Company made an election to transfer a portion of its HTM securities to AFS as part of its adoption of ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities”. The transfer resulted in a net of tax increase to AOCI of $19 million. (2) On January 1, 2020, the Company transferred all of its investment securities designated as HTM to the AFS category. The transfer resulted in a net of tax increase to AOCI of $1.1 billion. See Note 5 for additional discussion on the 2020 transfer of HTM securities to AFS.
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Regulatory Requirements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Capital and Ratios | The regulatory capital and ratios for CSC (consolidated) and CSB are as follows:
(1) In the interagency regulatory capital and liquidity rules adopted in October 2019, Category III banking organizations such as CSC were given the ability to opt-out of the inclusion of AOCI in regulatory capital, and CSC made this opt-out election as of January 1, 2020. Therefore, AOCI is excluded from the amounts and ratios presented as of September 30, 2020. In 2019, CSC and CSB were required to include all components of AOCI in regulatory capital; the amounts and ratios for December 31, 2019 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 a countercyclical capital buffer above the regulatory minimum risk-based capital ratios. The capital conservation buffer and countercyclical capital buffer were 2.5% and zero percent, respectively, for both periods presented. 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 September 30, 2020, 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) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Information for Reportable Segments | Financial information for the segments is presented in the following table:
(1) Beginning in the first quarter of 2020, order flow revenue was reclassified from other revenue to trading revenue. Prior period amounts have been reclassified to reflect this change.
|
Business Acquisitions (TD Ameritrade Narrative) (Details) account in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Oct. 06, 2020
USD ($)
account
shares
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
|
Dec. 31, 2019
USD ($)
|
|
Business Acquisition [Line Items] | |||||
Goodwill | $ 1,737 | $ 1,737 | $ 1,227 | ||
TD Ameritrade [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquisition costs | $ 42 | $ 103 | $ 1 | ||
TD Ameritrade [Member] | Subsequent Event [Member] | |||||
Business Acquisition [Line Items] | |||||
Total client assets | $ 6,000,000 | ||||
Total number of portfolio accounts | account | 29 | ||||
Conversion of shares (in shares) | shares | 1.0837 | ||||
Number of shares issued in acquisition (in shares) | shares | 586,000,000 | ||||
Equipment, office facilities, and property | $ 466 | ||||
Estimated Fair Value | 8,880 | ||||
Goodwill | 10,264 | ||||
Professional services expense | $ 26 | ||||
TD Ameritrade [Member] | Common Stock [Member] | Subsequent Event [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of shares issued in acquisition (in shares) | shares | 509,000,000 | ||||
TD Ameritrade [Member] | Common Stock [Member] | Subsequent Event [Member] | TD Bank [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of shares issued in acquisition (in shares) | shares | 177,000,000 | ||||
TD Ameritrade [Member] | Common Stock - Nonvoting [Member] | Subsequent Event [Member] | TD Bank [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of shares issued in acquisition (in shares) | shares | 77,000,000 |
Business Acquisitions (Equity Interest Issued) (Details) - TD Ameritrade [Member] - Subsequent Event [Member] $ in Millions |
Oct. 06, 2020
USD ($)
shares
|
---|---|
Business Acquisition [Line Items] | |
Fair value of consideration for TD Ameritrade outstanding common stock | $ 21,664 |
Fair value of replaced TD Ameritrade equity awards attributable to pre-combination services | 94 |
Purchase price | $ 21,758 |
Conversion of shares (in shares) | shares | 1.0837 |
Business Acquisitions (Purchase Price) (Details) - USD ($) $ in Millions |
Oct. 06, 2020 |
May 26, 2020 |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|---|---|
Fair value of liabilities assumed: | ||||
Goodwill | $ 1,737 | $ 1,227 | ||
TD Ameritrade [Member] | Subsequent Event [Member] | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 21,758 | |||
Fair value of assets acquired: | ||||
Cash and cash equivalents | 3,484 | |||
Cash and investments segregated and on deposit for regulatory purposes | 14,236 | |||
Receivables from brokerage clients | 28,009 | |||
Available for sale securities | 1,779 | |||
Acquired intangible assets | 8,880 | |||
Equipment, office facilities, and property | 466 | |||
Other assets | 3,061 | |||
Total assets acquired | 59,915 | |||
Fair value of liabilities assumed: | ||||
Payables to brokerage clients | 37,602 | |||
Accrued expenses and other liabilities | 6,990 | |||
Long-term debt | 3,829 | |||
Total liabilities assumed | 48,421 | |||
Fair value of net identifiable assets acquired | 11,494 | |||
Goodwill | $ 10,264 | |||
USAA-IMCO [Member] | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 1,581 | |||
Fair value of assets acquired: | ||||
Cash and investments segregated and on deposit for regulatory purposes | 4,392 | |||
Receivables from brokerage clients | 80 | |||
Acquired intangible assets | 1,109 | |||
Total assets acquired | 5,581 | |||
Fair value of liabilities assumed: | ||||
Payables to brokerage clients | 4,472 | |||
Total liabilities assumed | 4,472 | |||
Fair value of net identifiable assets acquired | 1,109 | |||
Goodwill | $ 472 |
Business Acquisitions (Tangible and Intangible Assets Acquired) (Details) - USD ($) $ in Millions |
Oct. 06, 2020 |
May 26, 2020 |
---|---|---|
TD Ameritrade [Member] | Subsequent Event [Member] | ||
Business Acquisition [Line Items] | ||
Equipment, office facilities, and property | $ 466 | |
Estimated Fair Value | 8,880 | |
USAA-IMCO [Member] | ||
Business Acquisition [Line Items] | ||
Estimated Fair Value | $ 1,109 | |
Customer relationships [Member] | TD Ameritrade [Member] | Subsequent Event [Member] | ||
Business Acquisition [Line Items] | ||
Estimated Fair Value | $ 8,700 | |
Weighted-Average Estimated Useful Life (years) | 20 years | |
Customer relationships [Member] | USAA-IMCO [Member] | ||
Business Acquisition [Line Items] | ||
Estimated Fair Value | $ 962 | |
Weighted-Average Estimated Useful Life (years) | 18 years | |
Existing Technology [Member] | TD Ameritrade [Member] | Subsequent Event [Member] | ||
Business Acquisition [Line Items] | ||
Estimated Fair Value | $ 165 | |
Weighted-Average Estimated Useful Life (years) | 2 years | |
Trade name [Member] | TD Ameritrade [Member] | Subsequent Event [Member] | ||
Business Acquisition [Line Items] | ||
Estimated Fair Value | $ 15 | |
Weighted-Average Estimated Useful Life (years) | 2 years | |
Brokerage referral agreement [Member] | USAA-IMCO [Member] | ||
Business Acquisition [Line Items] | ||
Estimated Fair Value | $ 142 | |
Weighted-Average Estimated Useful Life (years) | 20 years | |
Initial term | 5 years | |
Renewal period | 1 year | |
Royalty-free license [Member] | USAA-IMCO [Member] | ||
Business Acquisition [Line Items] | ||
Estimated Fair Value | $ 5 | |
Weighted-Average Estimated Useful Life (years) | 7 years | |
Real Property [Member] | TD Ameritrade [Member] | Subsequent Event [Member] | ||
Business Acquisition [Line Items] | ||
Equipment, office facilities, and property | $ 226 | |
Weighted-Average Estimated Useful Life (Years) | 37 years | |
Personal Property [Member] | TD Ameritrade [Member] | Subsequent Event [Member] | ||
Business Acquisition [Line Items] | ||
Equipment, office facilities, and property | $ 162 | |
Weighted-Average Estimated Useful Life (Years) | 2 years | |
Construction in Progress [Member] | TD Ameritrade [Member] | Subsequent Event [Member] | ||
Business Acquisition [Line Items] | ||
Equipment, office facilities, and property | $ 49 | |
Land [Member] | TD Ameritrade [Member] | Subsequent Event [Member] | ||
Business Acquisition [Line Items] | ||
Equipment, office facilities, and property | $ 29 |
Business Acquisitions (Pro Forma Information) (Details) - USAA-IMCO [Member] - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Business Acquisition [Line Items] | ||||
Total net revenues | $ 2,448 | $ 2,796 | $ 7,618 | $ 8,369 |
Net income | $ 613 | 906 | 1,949 | 2,631 |
Acquisition costs | $ 4 | $ 52 | $ 7 |
Business Acquisitions (USAA-IMCO Narrative) (Details) account in Millions, $ in Millions |
3 Months Ended | 4 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|---|
May 26, 2020
USD ($)
account
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
|
Dec. 31, 2019
USD ($)
|
|
Business Acquisition [Line Items] | |||||||
Goodwill | $ 1,737 | $ 1,737 | $ 1,737 | $ 1,227 | |||
USAA-IMCO [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price | $ 1,581 | ||||||
Number of brokerage and managed portfolio accounts acquired | account | 1,000,000 | ||||||
Client assets acquired | $ 80,000 | ||||||
Adjustment to intangible assets | 9 | ||||||
Adjustment to purchase price | 43 | ||||||
Adjustment to goodwill | 34 | ||||||
Intangible assets acquired | 1,109 | ||||||
Goodwill | $ 472 | ||||||
Net revenue | 99 | 138 | |||||
Net loss | $ 4 | $ 41 | |||||
Termination fee | 20 | ||||||
Acquisition costs | $ 4 | 52 | $ 7 | ||||
After-tax acquisition and integration-related costs | $ 39 | $ 10 |
Revenue Recognition (Disaggregated Revenue) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|||
Disaggregation of Revenue [Line Items] | ||||||
Interest revenue | $ 1,432 | $ 1,892 | $ 4,626 | $ 5,817 | ||
Interest expense | (89) | (261) | (322) | (896) | ||
Net interest revenue | 1,343 | 1,631 | 4,304 | 4,921 | ||
Other | [1] | 64 | 49 | 161 | 198 | |
Total net revenues | 2,448 | 2,711 | 7,515 | 8,115 | ||
Mutual funds, ETFs, and CTFs [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Asset management and administration fees and Trading revenue | 423 | 445 | 1,300 | 1,287 | ||
Advice solutions [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Asset management and administration fees and Trading revenue | 373 | 305 | 999 | 878 | ||
Other [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Asset management and administration fees and Trading revenue | 64 | 75 | 189 | 201 | ||
Asset management and administration fees [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Asset management and administration fees and Trading revenue | 860 | 825 | 2,488 | 2,366 | ||
Commissions [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Asset management and administration fees and Trading revenue | 108 | 159 | 332 | 477 | ||
Principal Transactions [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Asset management and administration fees and Trading revenue | 6 | 13 | 36 | 54 | ||
Order Flow Revenue [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Asset management and administration fees and Trading revenue | 67 | 34 | 194 | 99 | ||
Trading revenue [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Asset management and administration fees and Trading revenue | [1] | $ 181 | $ 206 | $ 562 | $ 630 | |
|
Revenue Recognition (Capitalized Contract Costs and Contract Balances) (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Receivables from contracts with customers | $ 357 | $ 356 |
Investment Securities (Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Securities Available for Sale and Held to Maturity Securities) (Details) - USD ($) |
Sep. 30, 2020 |
Jan. 01, 2020 |
Dec. 31, 2019 |
---|---|---|---|
Available for sale securities: | |||
Amortized Cost | $ 296,199,000,000 | $ 61,155,000,000 | |
Gross Unrealized Gains | 8,016,000,000 | 407,000,000 | |
Gross Unrealized Losses | 457,000,000 | 140,000,000 | |
Fair Value | 303,758,000,000 | 61,422,000,000 | |
Held to maturity securities: | |||
Amortized Cost | 0 | $ 134,700,000,000 | 134,706,000,000 |
Gross Unrealized Gains | $ 1,400,000,000 | 1,758,000,000 | |
Gross Unrealized Losses | 365,000,000 | ||
Fair Value | 136,099,000,000 | ||
U.S. agency mortgage-backed securities [Member] | |||
Available for sale securities: | |||
Amortized Cost | 251,323,000,000 | 45,964,000,000 | |
Gross Unrealized Gains | 7,223,000,000 | 312,000,000 | |
Gross Unrealized Losses | 280,000,000 | 121,000,000 | |
Fair Value | 258,266,000,000 | 46,155,000,000 | |
Held to maturity securities: | |||
Amortized Cost | 109,325,000,000 | ||
Gross Unrealized Gains | 1,521,000,000 | ||
Gross Unrealized Losses | 280,000,000 | ||
Fair Value | 110,566,000,000 | ||
Asset-backed securities [Member] | |||
Available for sale securities: | |||
Amortized Cost | 19,320,000,000 | 4,970,000,000 | |
Gross Unrealized Gains | 177,000,000 | 30,000,000 | |
Gross Unrealized Losses | 176,000,000 | 13,000,000 | |
Fair Value | 19,321,000,000 | 4,987,000,000 | |
Held to maturity securities: | |||
Amortized Cost | 17,806,000,000 | ||
Gross Unrealized Gains | 50,000,000 | ||
Gross Unrealized Losses | 85,000,000 | ||
Fair Value | 17,771,000,000 | ||
Corporate debt securities [Member] | |||
Available for sale securities: | |||
Amortized Cost | 13,192,000,000 | 5,427,000,000 | |
Gross Unrealized Gains | 388,000,000 | 57,000,000 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 13,580,000,000 | 5,484,000,000 | |
Held to maturity securities: | |||
Amortized Cost | 4,661,000,000 | ||
Gross Unrealized Gains | 57,000,000 | ||
Gross Unrealized Losses | 0 | ||
Fair Value | 4,718,000,000 | ||
U.S. Treasury securities [Member] | |||
Available for sale securities: | |||
Amortized Cost | 7,871,000,000 | 3,387,000,000 | |
Gross Unrealized Gains | 31,000,000 | 3,000,000 | |
Gross Unrealized Losses | 0 | 6,000,000 | |
Fair Value | 7,902,000,000 | 3,384,000,000 | |
Held to maturity securities: | |||
Amortized Cost | 223,000,000 | ||
Gross Unrealized Gains | 5,000,000 | ||
Gross Unrealized Losses | 0 | ||
Fair Value | 228,000,000 | ||
U.S. state and municipal securities [Member] | |||
Available for sale securities: | |||
Amortized Cost | 1,548,000,000 | ||
Gross Unrealized Gains | 142,000,000 | ||
Gross Unrealized Losses | 0 | ||
Fair Value | 1,690,000,000 | ||
Held to maturity securities: | |||
Amortized Cost | 1,301,000,000 | ||
Gross Unrealized Gains | 103,000,000 | ||
Gross Unrealized Losses | 0 | ||
Fair Value | 1,404,000,000 | ||
Non-agency commercial mortgage-backed securities [Member] | |||
Available for sale securities: | |||
Amortized Cost | 1,214,000,000 | 13,000,000 | |
Gross Unrealized Gains | 52,000,000 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 1,266,000,000 | 13,000,000 | |
Held to maturity securities: | |||
Amortized Cost | 1,119,000,000 | ||
Gross Unrealized Gains | 22,000,000 | ||
Gross Unrealized Losses | 0 | ||
Fair Value | 1,141,000,000 | ||
Certificates of deposit [Member] | |||
Available for sale securities: | |||
Amortized Cost | 500,000,000 | 1,000,000,000 | |
Gross Unrealized Gains | 1,000,000 | 4,000,000 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 501,000,000 | 1,004,000,000 | |
Held to maturity securities: | |||
Amortized Cost | 200,000,000 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | 0 | ||
Fair Value | 200,000,000 | ||
Commercial paper [Member] | |||
Available for sale securities: | |||
Amortized Cost | 394,000,000 | ||
Gross Unrealized Gains | 1,000,000 | ||
Gross Unrealized Losses | 0 | ||
Fair Value | 395,000,000 | ||
Available-for-sale securities, current | 0 | 2,500,000,000 | |
Foreign government agency securities [Member] | |||
Available for sale securities: | |||
Amortized Cost | 1,209,000,000 | ||
Gross Unrealized Gains | 2,000,000 | ||
Gross Unrealized Losses | 1,000,000 | ||
Fair Value | 1,210,000,000 | ||
Held to maturity securities: | |||
Amortized Cost | 50,000,000 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | 0 | ||
Fair Value | 50,000,000 | ||
Other [Member] | |||
Available for sale securities: | |||
Amortized Cost | 22,000,000 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | 0 | ||
Fair Value | $ 22,000,000 | ||
Held to maturity securities: | |||
Amortized Cost | 21,000,000 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | 0 | ||
Fair Value | $ 21,000,000 | ||
Federal Family Education Loan Program (FFELP) Guaranteed Loans [Member] | |||
Held to maturity securities: | |||
Asset-backed securities percentage | 49.00% | 43.00% | |
Collateralized Credit Card Securities [Member] | |||
Held to maturity securities: | |||
Asset-backed securities percentage | 37.00% | 42.00% | |
Corporate debt securities issued by financial services industry [Member] | |||
Held to maturity securities: | |||
AFS and HTM securities percentage | 47.00% | 32.00% |
Investment Securities (Narrative) (Details) - USD ($) |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2020 |
Dec. 31, 2019 |
Jan. 01, 2020 |
|
Schedule of Held-to-maturity Securities [Line Items] | |||
Consolidated assets | $ 419,355,000,000 | $ 294,005,000,000 | |
Held to maturity securities amortized cost | 0 | 134,706,000,000 | $ 134,700,000,000 |
Unrealized gain | 1,758,000,000 | $ 1,400,000,000 | |
Available-for-sale, written down to fair value | 0 | ||
Writedown to fair value | 0 | ||
Available-for-sale, allowance for credit loss | 0 | ||
OTTI recognized in earnings or other comprehensive income | 0 | ||
Accrued interest for AFS securities | 597,000,000 | ||
Accrued interest for AFS and HTM securities | 471,000,000 | ||
Write-offs of accrued interest receivable on AFS securities | 0 | 0 | |
Write-offs of accrued interest receivable on HTM securities | $ 0 | ||
Deposits [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Fair value of pledged securities | 1,300,000,000 | ||
Federal Reserve Bank Advances [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Fair value of pledged securities | 7,600,000,000 | ||
Federal Home Loan Bank of San Francisco [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Fair value of pledged securities | $ 36,900,000,000 |
Investment Securities (Available For Sale and Held to Maturity Securities with Unrealized Losses, Aggregated by Category and Period of Continuous Unrealized Loss) (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Available for sale securities: | ||
Less than 12 months Fair Value | $ 45,958 | $ 17,493 |
Less than 12 months Unrealized Losses | 350 | 100 |
12 months or longer Fair Value | 9,845 | 8,133 |
12 months or longer Unrealized Losses | 107 | 40 |
Total Fair Value | 55,803 | 25,626 |
Total Unrealized Losses | 457 | 140 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 23,690 | |
Less than 12 months Unrealized Losses | 163 | |
12 months or longer Fair Value | 21,808 | |
12 months or longer Unrealized Losses | 202 | |
Total Fair Value | 45,498 | |
Total Unrealized Losses | 365 | |
Total securities with unrealized losses | ||
Less than 12 months Fair Value | 41,183 | |
Less than 12 months Unrealized Losses | 263 | |
12 months or longer Fair Value | 29,941 | |
12 months or longer Unrealized Losses | 242 | |
Total Fair Value | 71,124 | |
Total Unrealized Losses | 505 | |
Asset-backed securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 4,053 | 960 |
Less than 12 months Unrealized Losses | 83 | 6 |
12 months or longer Fair Value | 3,993 | 298 |
12 months or longer Unrealized Losses | 93 | 7 |
Total Fair Value | 8,046 | 1,258 |
Total Unrealized Losses | 176 | 13 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 7,507 | |
Less than 12 months Unrealized Losses | 63 | |
12 months or longer Fair Value | 2,898 | |
12 months or longer Unrealized Losses | 22 | |
Total Fair Value | 10,405 | |
Total Unrealized Losses | 85 | |
U.S. agency mortgage-backed securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 41,247 | 16,023 |
Less than 12 months Unrealized Losses | 266 | 94 |
12 months or longer Fair Value | 5,852 | 6,592 |
12 months or longer Unrealized Losses | 14 | 27 |
Total Fair Value | 47,099 | 22,615 |
Total Unrealized Losses | 280 | 121 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 16,183 | |
Less than 12 months Unrealized Losses | 100 | |
12 months or longer Fair Value | 18,910 | |
12 months or longer Unrealized Losses | 180 | |
Total Fair Value | 35,093 | |
Total Unrealized Losses | 280 | |
Foreign government agency securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 658 | |
Less than 12 months Unrealized Losses | 1 | |
12 months or longer Fair Value | 0 | |
12 months or longer Unrealized Losses | 0 | |
Total Fair Value | 658 | |
Total Unrealized Losses | $ 1 | |
U.S. Treasury securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 510 | |
Less than 12 months Unrealized Losses | 0 | |
12 months or longer Fair Value | 1,243 | |
12 months or longer Unrealized Losses | 6 | |
Total Fair Value | 1,753 | |
Total Unrealized Losses | $ 6 |
Investment Securities (Maturities of Securities Available for Sale and Held to Maturity) (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Available for sale securities, fair value | ||
Within 1 year | $ 13,894 | |
After 1 year through 5 years | 36,929 | |
After 5 years through 10 years | 68,171 | |
After 10 years | 184,764 | |
Fair Value | 303,758 | $ 61,422 |
Available for sale securities, amortized cost | ||
Within 1 year | 13,820 | |
After 1 year through 5 years | 35,591 | |
After 5 years through 10 years | 65,043 | |
After 10 years | 181,745 | |
Amortized Cost | 296,199 | 61,155 |
U.S. agency mortgage-backed securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 1,437 | |
After 1 year through 5 years | 21,995 | |
After 5 years through 10 years | 60,619 | |
After 10 years | 174,215 | |
Fair Value | 258,266 | 46,155 |
Available for sale securities, amortized cost | ||
Amortized Cost | 251,323 | 45,964 |
Asset-backed securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 10 | |
After 1 year through 5 years | 6,402 | |
After 5 years through 10 years | 4,469 | |
After 10 years | 8,440 | |
Fair Value | 19,321 | 4,987 |
Available for sale securities, amortized cost | ||
Amortized Cost | 19,320 | 4,970 |
Corporate debt securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 4,262 | |
After 1 year through 5 years | 7,000 | |
After 5 years through 10 years | 2,318 | |
After 10 years | 0 | |
Fair Value | 13,580 | 5,484 |
Available for sale securities, amortized cost | ||
Amortized Cost | 13,192 | 5,427 |
U.S. Treasury securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 7,559 | |
After 1 year through 5 years | 343 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 7,902 | 3,384 |
Available for sale securities, amortized cost | ||
Amortized Cost | 7,871 | 3,387 |
U.S. state and municipal securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 104 | |
After 5 years through 10 years | 765 | |
After 10 years | 821 | |
Fair Value | 1,690 | |
Available for sale securities, amortized cost | ||
Amortized Cost | 1,548 | |
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 | 1,266 | |
Fair Value | 1,266 | 13 |
Available for sale securities, amortized cost | ||
Amortized Cost | 1,214 | 13 |
Certificates of deposit [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 501 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 501 | 1,004 |
Available for sale securities, amortized cost | ||
Amortized Cost | 500 | $ 1,000 |
Foreign government agency securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 125 | |
After 1 year through 5 years | 1,085 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 1,210 | |
Available for sale securities, amortized cost | ||
Amortized Cost | 1,209 | |
Other [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 | 22 | |
Fair Value | 22 | |
Available for sale securities, amortized cost | ||
Amortized Cost | $ 22 |
Investment Securities (Proceeds and Gross Realized Gains And Losses from Sales of Securities Available for Sale) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds | $ 2,825 | $ 5,436 | $ 2,895 | $ 21,710 |
Gross realized gains | 4 | 5 | 4 | 15 |
Gross realized losses | $ 1 | $ 4 | $ 1 | $ 10 |
Bank Loans and Related Allowance for Credit Losses (Composition of Bank Loans and Delinquency Analysis by Loan Segment) (Details) - USD ($) |
9 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2020 |
Dec. 31, 2019 |
Jun. 30, 2020 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Dec. 31, 2018 |
|
Financing Receivable, Past Due [Line Items] | ||||||
Current | $ 22,243,000,000 | $ 18,173,000,000 | ||||
Past due and other nonaccrual loans | 73,000,000 | 57,000,000 | ||||
Total loans | 22,316,000,000 | 18,230,000,000 | ||||
Allowance for credit losses | 30,000,000 | 18,000,000 | $ 30,000,000 | $ 17,000,000 | $ 19,000,000 | $ 21,000,000 |
Total bank loans – net | 22,286,000,000 | 18,212,000,000 | ||||
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 | 24,000,000 | 30,000,000 | ||||
60-89 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 7,000,000 | 5,000,000 | ||||
More Than 90 Days Past Due and Other Nonaccrual Loans [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 42,000,000 | 22,000,000 | ||||
Residential Real Estate [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Current | 15,192,000,000 | 12,770,000,000 | ||||
Past due and other nonaccrual loans | 62,000,000 | 51,000,000 | ||||
Total loans | 15,254,000,000 | 12,821,000,000 | ||||
Allowance for credit losses | 27,000,000 | 15,000,000 | 26,000,000 | 14,000,000 | 17,000,000 | 19,000,000 |
Total bank loans – net | 15,227,000,000 | 12,806,000,000 | ||||
Residential Real Estate [Member] | 30-59 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 20,000,000 | 26,000,000 | ||||
Residential Real Estate [Member] | 60-89 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 1,000,000 | 5,000,000 | ||||
Residential Real Estate [Member] | More Than 90 Days Past Due and Other Nonaccrual Loans [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 41,000,000 | 20,000,000 | ||||
First Mortgage [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Total loans | 14,340,000,000 | 11,704,000,000 | ||||
First Mortgage [Member] | Residential Real Estate [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Current | 14,294,000,000 | 11,665,000,000 | ||||
Past due and other nonaccrual loans | 46,000,000 | 39,000,000 | ||||
Total loans | 14,340,000,000 | 11,704,000,000 | ||||
Allowance for credit losses | 21,000,000 | 11,000,000 | 22,000,000 | 10,000,000 | 12,000,000 | 14,000,000 |
Total bank loans – net | 14,319,000,000 | 11,693,000,000 | ||||
First Mortgage [Member] | Residential Real Estate [Member] | 30-59 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 19,000,000 | 24,000,000 | ||||
First Mortgage [Member] | Residential Real Estate [Member] | 60-89 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 1,000,000 | 4,000,000 | ||||
First Mortgage [Member] | Residential Real Estate [Member] | More Than 90 Days Past Due and Other Nonaccrual Loans [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 26,000,000 | 11,000,000 | ||||
HELOCs [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Total loans | 914,000,000 | 1,117,000,000 | ||||
HELOCs [Member] | Residential Real Estate [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Current | 898,000,000 | 1,105,000,000 | ||||
Past due and other nonaccrual loans | 16,000,000 | 12,000,000 | ||||
Total loans | 914,000,000 | 1,117,000,000 | ||||
Allowance for credit losses | 6,000,000 | 4,000,000 | 4,000,000 | 4,000,000 | 5,000,000 | 5,000,000 |
Total bank loans – net | 908,000,000 | 1,113,000,000 | ||||
HELOCs [Member] | Residential Real Estate [Member] | 30-59 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 1,000,000 | 2,000,000 | ||||
HELOCs [Member] | Residential Real Estate [Member] | 60-89 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 0 | 1,000,000 | ||||
HELOCs [Member] | Residential Real Estate [Member] | More Than 90 Days Past Due and Other Nonaccrual Loans [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 15,000,000 | 9,000,000 | ||||
Pledged asset lines [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Current | 6,875,000,000 | 5,202,000,000 | ||||
Past due and other nonaccrual loans | 10,000,000 | 4,000,000 | ||||
Total loans | 6,885,000,000 | 5,206,000,000 | ||||
Allowance for credit losses | 0 | 0 | ||||
Total bank loans – net | 6,885,000,000 | 5,206,000,000 | ||||
Pledged asset lines [Member] | 30-59 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 4,000,000 | 4,000,000 | ||||
Pledged asset lines [Member] | 60-89 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 6,000,000 | 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 | 176,000,000 | 201,000,000 | ||||
Past due and other nonaccrual loans | 1,000,000 | 2,000,000 | ||||
Total loans | 177,000,000 | 203,000,000 | ||||
Allowance for credit losses | 3,000,000 | 3,000,000 | $ 4,000,000 | $ 3,000,000 | $ 2,000,000 | $ 2,000,000 |
Total bank loans – net | 174,000,000 | 200,000,000 | ||||
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 | 1,000,000 | 2,000,000 | ||||
First Mortgage and HELOC [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Unamortized premiums and discounts and direct origination costs | $ 75,000,000 | $ 74,000,000 | ||||
First Mortgage and HELOC [Member] | Loans, Geographic Area [Member] | California [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Concentration risk percentage | 45.00% | 45.00% |
Bank Loans and Related Allowance for Credit Losses (Narrative) (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Dec. 31, 2019 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued interest | $ 45 | $ 46 |
Total bank loans | 22,316 | 18,230 |
First Mortgage and HELOC [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 13,600 | |
Adjustable Rate First Mortgage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Bank loans | $ 12,600 | |
Percent of loans with interest-only payments | 26.00% | |
Percent of interest only adjustable rate | 76.00% | |
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 | $ 914 | $ 1,117 |
Percent of loan balance outstanding, borrowers paid only minimum due | 53.00% | |
Home Equity Secured By Second Liens [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total bank loans | $ 731 |
Bank Loans and Related Allowance for Credit Losses (Changes in Allowance for Credit Losses) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | $ 30 | $ 19 | $ 18 | $ 21 |
Recoveries | 1 | 2 | ||
Provision for loan losses | 0 | (2) | 10 | (6) |
Balance at end of period | 30 | 17 | 30 | 17 |
Adoption of ASU 2016-13 [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 1 | 0 | ||
Residential Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 26 | 17 | 15 | 19 |
Recoveries | 1 | 2 | ||
Provision for loan losses | 1 | (3) | 10 | (7) |
Balance at end of period | 27 | 14 | 27 | 14 |
Residential Real Estate [Member] | Adoption of ASU 2016-13 [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 1 | 0 | ||
First Mortgage [Member] | Residential Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 22 | 12 | 11 | 14 |
Recoveries | 1 | 1 | ||
Provision for loan losses | (1) | (2) | 8 | (5) |
Balance at end of period | 21 | 10 | 21 | 10 |
First Mortgage [Member] | Residential Real Estate [Member] | Adoption of ASU 2016-13 [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 1 | 0 | ||
HELOCs [Member] | Residential Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 4 | 5 | 4 | 5 |
Recoveries | 0 | 1 | ||
Provision for loan losses | 2 | (1) | 2 | (2) |
Balance at end of period | 6 | 4 | 6 | 4 |
HELOCs [Member] | Residential Real Estate [Member] | Adoption of ASU 2016-13 [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 0 | 0 | ||
Other [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 4 | 2 | 3 | 2 |
Recoveries | 0 | 0 | ||
Provision for loan losses | (1) | 1 | 0 | 1 |
Balance at end of period | $ 3 | $ 3 | 3 | 3 |
Other [Member] | Adoption of ASU 2016-13 [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | $ 0 | $ 0 |
Bank Loans and Related Allowance for Credit Losses (Nonperforming Assets and Troubled Debt Restructuring) (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonperforming assets | $ 22,316 | $ 18,230 |
Troubled debt restructurings | 1 | 2 |
Total nonperforming assets and troubled debt restructurings | 44 | 25 |
Nonperforming Financial Instruments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonperforming assets | 43 | 23 |
Nonperforming Financial Instruments [Member] | Nonaccrual Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 42 | 22 |
Nonperforming Financial Instruments [Member] | Other Real Estate Owned [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonperforming assets | $ 1 | $ 1 |
Bank Loans and Related Allowance for Credit Losses (Credit Quality Indicators of Bank Loan Portfolio) (Details) $ in Millions |
Sep. 30, 2020
USD ($)
credit_rating
|
Dec. 31, 2019
USD ($)
credit_rating
|
---|---|---|
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 22,316 | $ 18,230 |
First Mortgage [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 6,091 | |
2019 | 3,256 | 4,002 |
2018 | 718 | 1,284 |
2017 | 1,283 | 1,911 |
2016 | 1,466 | 2,149 |
Pre-2016 | 1,526 | 2,358 |
Total loans | $ 14,340 | $ 11,704 |
Percent of Loans on Nonaccrual Status | ||
2020 | 0.09% | |
2019 | 0.05% | 0.04% |
2018 | 0.01% | 0.04% |
2017 | 0.15% | 0.04% |
2016 | 0.17% | 0.08% |
Pre-2016 | 0.99% | 0.25% |
Percent of Loans on Nonaccrual Status | 0.18% | 0.09% |
First Mortgage [Member] | Financial Asset Originated [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | $ 6,091 | |
2019 | 3,256 | $ 4,002 |
2018 | 718 | 1,284 |
2017 | 1,283 | 1,911 |
2016 | 1,466 | 2,149 |
Pre-2016 | 1,526 | 2,358 |
Total loans | 14,340 | 11,704 |
First Mortgage [Member] | Origination Loan to Value Ratio 70% and Below [Member] | Financial Asset Originated [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 5,064 | |
2019 | 2,552 | 3,104 |
2018 | 506 | 906 |
2017 | 967 | 1,427 |
2016 | 1,243 | 1,812 |
Pre-2016 | 1,081 | 1,679 |
Total loans | 11,413 | 8,928 |
First Mortgage [Member] | Origination Loan to Value Ratio Greater Than 70% Through 90% [Member] | Financial Asset Originated [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 1,027 | |
2019 | 704 | 898 |
2018 | 212 | 378 |
2017 | 316 | 484 |
2016 | 223 | 337 |
Pre-2016 | 442 | 676 |
Total loans | 2,924 | 2,773 |
First Mortgage [Member] | Origination Loan to Value Ratio Greater Than 90% Through 100% [Member] | Financial Asset Originated [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
2016 | 0 | 0 |
Pre-2016 | 3 | 3 |
Total loans | 3 | 3 |
First Mortgage [Member] | Estimated Current Loan To Value Ratio 70% and Below [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 5,198 | |
2019 | 2,802 | 3,125 |
2018 | 650 | 1,018 |
2017 | 1,251 | 1,790 |
2016 | 1,457 | 2,119 |
Pre-2016 | 1,512 | 2,330 |
Total loans | 12,870 | 10,382 |
First Mortgage [Member] | Estimated Current Loan To Value Ratio Greater Than 70% Through 90% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 893 | |
2019 | 454 | 877 |
2018 | 68 | 265 |
2017 | 32 | 121 |
2016 | 9 | 30 |
Pre-2016 | 13 | 27 |
Total loans | 1,469 | 1,320 |
First Mortgage [Member] | Estimated Current LTV Greater Than 90% Through 100% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | 0 |
2018 | 0 | 1 |
2017 | 0 | 0 |
2016 | 0 | 0 |
Pre-2016 | 0 | 1 |
Total loans | 0 | 2 |
First Mortgage [Member] | Estimated Current LTV Greater Than 100% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
2016 | 0 | 0 |
Pre-2016 | 1 | 0 |
Total loans | 1 | 0 |
First Mortgage [Member] | Origination FICO Score Below 620 [Member] | Financial Asset Originated [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
2016 | 0 | 0 |
Pre-2016 | 2 | 3 |
Total loans | 2 | 3 |
First Mortgage [Member] | Origination FICO Score 620 Through 679 [Member] | Financial Asset Originated [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 22 | |
2019 | 14 | 12 |
2018 | 4 | 6 |
2017 | 11 | 14 |
2016 | 17 | 20 |
Pre-2016 | 17 | 25 |
Total loans | 85 | 77 |
First Mortgage [Member] | Origination FICO Score 680 Through 739 [Member] | Financial Asset Originated [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 626 | |
2019 | 405 | 478 |
2018 | 132 | 220 |
2017 | 214 | 304 |
2016 | 200 | 290 |
Pre-2016 | 287 | 421 |
Total loans | 1,864 | 1,713 |
First Mortgage [Member] | Origination FICO Score 740 and Above [Member] | Financial Asset Originated [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 5,443 | |
2019 | 2,837 | 3,512 |
2018 | 582 | 1,058 |
2017 | 1,058 | 1,593 |
2016 | 1,249 | 1,839 |
Pre-2016 | 1,220 | 1,909 |
Total loans | 12,389 | 9,911 |
First Mortgage [Member] | Weighted Average Updated FICO Score Below 620 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 6 | |
2019 | 4 | 5 |
2018 | 2 | 4 |
2017 | 3 | 5 |
2016 | 1 | 3 |
Pre-2016 | 18 | 25 |
Total loans | 34 | 42 |
First Mortgage [Member] | Wighted Average Updated FICO Score 620 Through 679 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 47 | |
2019 | 37 | 45 |
2018 | 18 | 36 |
2017 | 24 | 32 |
2016 | 20 | 26 |
Pre-2016 | 38 | 68 |
Total loans | 184 | 207 |
First Mortgage [Member] | Weighted Average Updated FICO Score 680 Through 739 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 514 | |
2019 | 300 | 474 |
2018 | 92 | 153 |
2017 | 148 | 213 |
2016 | 129 | 199 |
Pre-2016 | 196 | 307 |
Total loans | 1,379 | 1,346 |
First Mortgage [Member] | Weighted Average Updated FICO Score 740 and Above [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 5,524 | |
2019 | 2,915 | 3,478 |
2018 | 606 | 1,091 |
2017 | 1,108 | 1,661 |
2016 | 1,316 | 1,921 |
Pre-2016 | 1,274 | 1,958 |
Total loans | 12,743 | 10,109 |
HELOCs [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Revolving HELOCs amortized cost basis | 498 | 611 |
HELOCs converted to term loans | 416 | 506 |
Total loans | $ 914 | $ 1,117 |
Percent of Loans on Nonaccrual Status | ||
Revolving HELOCs amortized cost basis | 0.63% | 0.19% |
HELOCs converted to term loans | 2.74% | 1.57% |
Percent of Loans on Nonaccrual Status | 1.64% | 0.83% |
HELOCs [Member] | Financial Asset Originated [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Revolving HELOCs amortized cost basis | $ 498 | $ 611 |
HELOCs converted to term loans | 416 | 506 |
Total loans | 914 | 1,117 |
HELOCs [Member] | Origination Loan to Value Ratio 70% and Below [Member] | Financial Asset Originated [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Revolving HELOCs amortized cost basis | 368 | 444 |
HELOCs converted to term loans | 294 | 354 |
Total loans | 662 | 798 |
HELOCs [Member] | Origination Loan to Value Ratio Greater Than 70% Through 90% [Member] | Financial Asset Originated [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Revolving HELOCs amortized cost basis | 130 | 167 |
HELOCs converted to term loans | 118 | 147 |
Total loans | 248 | 314 |
HELOCs [Member] | Origination Loan to Value Ratio Greater Than 90% Through 100% [Member] | Financial Asset Originated [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Revolving HELOCs amortized cost basis | 0 | 0 |
HELOCs converted to term loans | 4 | 5 |
Total loans | 4 | 5 |
HELOCs [Member] | Estimated Current Loan To Value Ratio 70% and Below [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Revolving HELOCs amortized cost basis | 478 | 578 |
HELOCs converted to term loans | 400 | 478 |
Total loans | 878 | 1,056 |
HELOCs [Member] | Estimated Current Loan To Value Ratio Greater Than 70% Through 90% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Revolving HELOCs amortized cost basis | 20 | 33 |
HELOCs converted to term loans | 13 | 23 |
Total loans | 33 | 56 |
HELOCs [Member] | Estimated Current LTV Greater Than 90% Through 100% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Revolving HELOCs amortized cost basis | 0 | 0 |
HELOCs converted to term loans | 2 | 3 |
Total loans | 2 | 3 |
HELOCs [Member] | Estimated Current LTV Greater Than 100% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Revolving HELOCs amortized cost basis | 0 | 0 |
HELOCs converted to term loans | 1 | 2 |
Total loans | 1 | 2 |
HELOCs [Member] | Origination FICO Score Below 620 [Member] | Financial Asset Originated [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Revolving HELOCs amortized cost basis | 0 | 0 |
HELOCs converted to term loans | 0 | 0 |
Total loans | 0 | 0 |
HELOCs [Member] | Origination FICO Score 620 Through 679 [Member] | Financial Asset Originated [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Revolving HELOCs amortized cost basis | 1 | 1 |
HELOCs converted to term loans | 3 | 4 |
Total loans | 4 | 5 |
HELOCs [Member] | Origination FICO Score 680 Through 739 [Member] | Financial Asset Originated [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Revolving HELOCs amortized cost basis | 91 | 114 |
HELOCs converted to term loans | 88 | 105 |
Total loans | 179 | 219 |
HELOCs [Member] | Origination FICO Score 740 and Above [Member] | Financial Asset Originated [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Revolving HELOCs amortized cost basis | 406 | 496 |
HELOCs converted to term loans | 325 | 397 |
Total loans | 731 | 893 |
HELOCs [Member] | Weighted Average Updated FICO Score Below 620 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Revolving HELOCs amortized cost basis | 3 | 6 |
HELOCs converted to term loans | 11 | 15 |
Total loans | 14 | 21 |
HELOCs [Member] | Wighted Average Updated FICO Score 620 Through 679 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Revolving HELOCs amortized cost basis | 15 | 18 |
HELOCs converted to term loans | 22 | 22 |
Total loans | 37 | 40 |
HELOCs [Member] | Weighted Average Updated FICO Score 680 Through 739 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Revolving HELOCs amortized cost basis | 65 | 92 |
HELOCs converted to term loans | 61 | 80 |
Total loans | 126 | 172 |
HELOCs [Member] | Weighted Average Updated FICO Score 740 and Above [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Revolving HELOCs amortized cost basis | 415 | 495 |
HELOCs converted to term loans | 322 | 389 |
Total loans | 737 | 884 |
Pledged Asset Lines [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 6,885 | 5,206 |
Pledged Asset Lines [Member] | Weighted Average Loan to Value Ratio =70% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 6,885 | $ 5,206 |
Percent of Loans on Nonaccrual Status | ||
Percent of Loans on Nonaccrual Status | 0.00% | 0.00% |
Weighted Average Updated FICO | credit_rating | 772 | 766 |
Bank Loans and Related Allowance for Credit Losses (Convert to Amortizing Loans) (Details) - HELOCs [Member] - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
HELOCs converted to amortizing loans | $ 9 | $ 13 | $ 25 | $ 41 |
Converted to an amortizing loan by period end | 416 | 416 | ||
Within 1 year | 37 | 37 | ||
1 year – 3 years | 83 | 83 | ||
3 years – 5 years | 112 | 112 | ||
5 years | 266 | 266 | ||
Total | $ 914 | $ 914 |
Variable Interest Entities (Aggregate Assets, Liabilities and Maximum Exposure to Loss) (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Variable Interest Entity [Line Items] | ||
Total assets | $ 419,355 | $ 294,005 |
Liabilities | 388,024 | 272,260 |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Total assets | 699 | 636 |
Liabilities | 292 | 275 |
Maximum exposure to loss | 734 | 670 |
Variable Interest Entity, Not Primary Beneficiary [Member] | LIHTC Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Total assets | 583 | 516 |
Liabilities | 292 | 275 |
Maximum exposure to loss | 583 | 516 |
Variable Interest Entity, Not Primary Beneficiary [Member] | Other CRA Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Total assets | 116 | 120 |
Liabilities | 0 | 0 |
Maximum exposure to loss | $ 151 | $ 154 |
Bank Deposits (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Interest-bearing deposits: | ||
Deposits swept from brokerage accounts | $ 298,344 | $ 201,531 |
Checking | 15,508 | 12,650 |
Savings and other | 6,131 | 5,168 |
Total interest-bearing deposits | 319,983 | 219,349 |
Non-interest-bearing deposits | 734 | 745 |
Total bank deposits | $ 320,717 | $ 220,094 |
Borrowings (Long-term Debt Including Unamortized Debt Discounts and Premiums) (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Dec. 31, 2019 |
|
Debt Instrument [Line Items] | ||
Senior Notes | $ 7,881 | $ 7,481 |
Unamortized discount — net | (12) | (14) |
Debt issuance costs | (40) | (37) |
Total long-term debt | $ 7,836 | 7,430 |
0.6100% Finance Lease Obligation [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 0.61% | |
Finance lease obligation | $ 7 | 0 |
Senior Notes [Member] | Senior Notes Due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 4.45% | |
Senior Notes | $ 0 | 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 March 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 4.20% | |
Senior Notes | $ 600 | 0 |
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 | 600 |
Senior Notes [Member] | Senior Notes Due 2030 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 4.625% | |
Senior Notes | $ 500 | 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 |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Debt Disclosure [Abstract] | ||
2020 | $ 0 | |
2021 | 1,200 | |
2022 | 256 | |
2023 | 807 | |
2024 | 500 | |
Thereafter | 5,125 | |
Total maturities | 7,888 | |
Unamortized discount — net | (12) | $ (14) |
Debt issuance costs | (40) | (37) |
Total long-term debt | $ 7,836 | $ 7,430 |
Borrowings (Narrative) (Details) - USD ($) |
Oct. 06, 2020 |
Sep. 30, 2020 |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|---|---|
Line of Credit Facility [Line Items] | ||||
Federal Reserve Bank stock | $ 190,000,000 | |||
Senior Notes | $ 7,881,000,000 | $ 7,481,000,000 | ||
Federal Home Loan Bank Advances [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Amounts outstanding | 0 | 0 | ||
FHLB stock | 47,000,000 | 35,000,000 | ||
Total borrowing capacity | 7,600,000,000 | 8,500,000,000 | ||
Federal Home Loan Bank Advances [Member] | Secured Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, current borrowing capacity | 45,500,000,000 | 34,200,000,000 | ||
Amounts outstanding | $ 0 | $ 0 | ||
Senior Notes [Member] | TD Ameritrade [Member] | Subsequent Event [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Senior Notes | $ 3,550,000,000 |
Borrowings (TDA Senior Notes Outstanding) (Details) - USD ($) $ in Millions |
Oct. 06, 2020 |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Senior Notes | $ 7,881 | $ 7,481 | |
Senior Notes [Member] | TD Ameritrade [Member] | Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 3,550 | ||
Senior Notes [Member] | Senior Notes Due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 256 | 256 | |
Fixed Interest Rate | 3.225% | ||
Senior Notes [Member] | Senior Notes Due 2022 [Member] | TD Ameritrade [Member] | Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 750 | ||
Fixed Interest Rate | 2.95% | ||
Senior Notes [Member] | Senior Notes Due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 500 | 500 | |
Fixed Interest Rate | 3.55% | ||
Senior Notes [Member] | Senior Notes Due 2024 [Member] | TD Ameritrade [Member] | Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 400 | ||
Fixed Interest Rate | 3.75% | ||
Senior Notes [Member] | Senior Notes Due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 375 | 375 | |
Fixed Interest Rate | 3.00% | ||
Senior Notes [Member] | Senior Notes Due 2025 [Member] | TD Ameritrade [Member] | Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 500 | ||
Fixed Interest Rate | 3.625% | ||
Senior Notes [Member] | Senior Notes Due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 650 | 650 | |
Fixed Interest Rate | 3.20% | ||
Senior Notes [Member] | Senior Notes Due 2027 [Member] | TD Ameritrade [Member] | Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 800 | ||
Fixed Interest Rate | 3.30% | ||
Senior Notes [Member] | Senior Notes Due 2029 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 600 | 600 | |
Fixed Interest Rate | 4.00% | ||
Senior Notes [Member] | Senior Notes Due 2029 [Member] | TD Ameritrade [Member] | Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 500 | ||
Fixed Interest Rate | 2.75% | ||
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] | TD Ameritrade [Member] | Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 600 | ||
Basis spread rate | 0.43% |
Commitments and Contingencies (Commitments to Extend/Purchase) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Commitments to purchase | $ 11,022 | $ 12,274 | |||
First Mortgage [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Purchased during period | $ 1,600 | $ 842 | 6,500 | $ 2,000 | |
Commitments to purchase | 2,238 | 1,521 | |||
HELOCs [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Purchased during period | 122 | $ 52 | 362 | $ 180 | |
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 | $ 8,784 | $ 8,784 | $ 10,753 |
Commitments and Contingencies (Details) |
Sep. 30, 2020
USD ($)
|
---|---|
Loss Contingencies [Line Items] | |
Aggregate face amount of letter of credit agreements | $ 15,000,000 |
Performance Guarantee [Member] | |
Loss Contingencies [Line Items] | |
Liability for guarantees | 0 |
U.S. Treasury securities [Member] | |
Loss Contingencies [Line Items] | |
U.S. Treasury securities posted as collateral | 242,000,000 |
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 |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
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 | $ 503 | $ 719 |
Financial Instruments Subject to Off-Balance Sheet Credit Risk (Offsetting Assets and Liabilities) (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Resale agreements | ||
Gross Assets | $ 13,711 | $ 9,028 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 13,711 | 9,028 |
Counterparty Offsetting | 0 | 0 |
Collateral | (13,711) | (9,028) |
Net Amount | 0 | 0 |
Securities borrowed | ||
Gross Assets | 516 | 735 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 516 | 735 |
Counterparty Offsetting | (507) | (730) |
Collateral | (8) | (5) |
Net Amount | 1 | 0 |
Total Gross Assets | 14,227 | 9,763 |
Total Assets, Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | 0 |
Total Assets, Net Amounts Presented in the Condensed Consolidated Balance Sheets | 14,227 | 9,763 |
Total Assets, Gross Amounts Not Offset in the Consolidated Balance Sheet, Counterparty Offsetting | (507) | (730) |
Total Assets, Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral | (13,719) | (9,033) |
Total Assets, Net Amount | 1 | 0 |
Securities loaned | ||
Gross Liabilities | 1,432 | 1,251 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 1,432 | 1,251 |
Counterparty Offsetting | (507) | (730) |
Collateral | (789) | (445) |
Net Amount | 136 | 76 |
Total Gross Liabilities | 1,432 | 1,251 |
Total Liabilities, Net Amounts Presented in the Consolidated Balance Sheet | 1,432 | 1,251 |
Total Liabilities, Gross Amounts Not Offset in the Consolidated Balance Sheet, Counterparty Offsetting | (507) | (730) |
Total Liabilities, Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral | (789) | (445) |
Total Liabilities, Net Amount | 136 | 76 |
Offsetting Assets [Line Items] | ||
Fair value of client securities available to be pledged | 31,828 | 26,685 |
Resale And Repurchase Agreements [Member] | ||
Offsetting Assets [Line Items] | ||
Fair value of client securities available to be pledged | $ 13,900 | $ 9,200 |
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 |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Securities Financing Transaction [Line Items] | ||
Fair value of client securities available to be pledged | $ 31,828 | $ 26,685 |
Total collateral pledged | 8,891 | 5,481 |
Fulfillment of Requirements with the Options Clearing Corporation [Member] | ||
Securities Financing Transaction [Line Items] | ||
Total collateral pledged | 4,808 | 2,171 |
Fulfillment of Client Short Sales [Member] | ||
Securities Financing Transaction [Line Items] | ||
Total collateral pledged | 2,964 | 2,293 |
Securities Lending to Other Broker-Dealers [Member] | ||
Securities Financing Transaction [Line Items] | ||
Total collateral pledged | 1,119 | 1,017 |
Fully Paid Client Securities [Member] | ||
Securities Financing Transaction [Line Items] | ||
Total collateral pledged | $ 162 | $ 142 |
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 |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | $ 303,758 | $ 61,422 |
Certificates of deposit [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 501 | 1,004 |
U.S. agency mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 258,266 | 46,155 |
Asset-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 19,321 | 4,987 |
Corporate debt securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 13,580 | 5,484 |
U.S. Treasury securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 7,902 | 3,384 |
U.S. state and municipal securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 1,690 | |
Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 1,266 | 13 |
Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 395 | |
Foreign government agency securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 1,210 | |
Other [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 22 | |
Fair Value, Recurring [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 3,757 | 7,677 |
Investments segregated and on deposit for regulatory purposes | 14,074 | 8,627 |
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 303,758 | 61,422 |
Other assets | 781 | 718 |
Total | 322,370 | 78,444 |
Fair Value, Recurring [Member] | Money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 3,757 | 5,179 |
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 | 901 | 1,351 |
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 501 | 1,004 |
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 | 13,173 | 7,276 |
Other assets | 276 | 202 |
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 (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 258,266 | 46,155 |
Fair Value, Recurring [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 19,321 | 4,987 |
Fair Value, Recurring [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 13,580 | 5,484 |
Fair Value, Recurring [Member] | U.S. Treasury securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 7,902 | 3,384 |
Fair Value, Recurring [Member] | U.S. state and municipal securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 1,690 | |
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 (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 1,266 | 13 |
Fair Value, Recurring [Member] | Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2,498 | |
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 395 | |
Fair Value, Recurring [Member] | Foreign government agency securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 1,210 | |
Fair Value, Recurring [Member] | Other [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 22 | |
Fair Value, Recurring [Member] | Equity and bond mutual funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets | 352 | 442 |
Fair Value, Recurring [Member] | State and municipal debt obligations [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets | 22 | 47 |
Fair Value, Recurring [Member] | Equity, corporate debt, and other securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets | 131 | 27 |
Fair Value, Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 3,757 | 5,179 |
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 0 | 0 |
Other assets | 446 | 447 |
Total | 4,203 | 5,626 |
Fair Value, Recurring [Member] | Level 1 [Member] | Money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 3,757 | 5,179 |
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 (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 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 |
Other assets | 0 | 0 |
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 (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 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 (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 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 (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 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 (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 0 | 0 |
Fair Value, Recurring [Member] | Level 1 [Member] | U.S. state and municipal securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 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 (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 0 | 0 |
Fair Value, Recurring [Member] | Level 1 [Member] | Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 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 (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 0 | |
Fair Value, Recurring [Member] | Level 1 [Member] | Other [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 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 assets | 352 | 442 |
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 assets | 0 | 0 |
Fair Value, Recurring [Member] | Level 1 [Member] | Equity, corporate debt, and other securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets | 94 | 5 |
Fair Value, Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 2,498 |
Investments segregated and on deposit for regulatory purposes | 14,074 | 8,627 |
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 303,758 | 61,422 |
Other assets | 335 | 271 |
Total | 318,167 | 72,818 |
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] | Certificates of deposit [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 901 | 1,351 |
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 501 | 1,004 |
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 | 13,173 | 7,276 |
Other assets | 276 | 202 |
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 (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 258,266 | 46,155 |
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 (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 19,321 | 4,987 |
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 (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 13,580 | 5,484 |
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 (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 7,902 | 3,384 |
Fair Value, Recurring [Member] | Level 2 [Member] | U.S. state and municipal securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 1,690 | |
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 (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 1,266 | 13 |
Fair Value, Recurring [Member] | Level 2 [Member] | Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2,498 | |
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 395 | |
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 (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 1,210 | |
Fair Value, Recurring [Member] | Level 2 [Member] | Other [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 22 | |
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 assets | 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 assets | 22 | 47 |
Fair Value, Recurring [Member] | Level 2 [Member] | Equity, corporate debt, and other securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets | 37 | 22 |
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 |
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 0 | 0 |
Other assets | 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] | 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 (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 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 |
Other assets | 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 (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 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 (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 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 (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 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 (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 0 | 0 |
Fair Value, Recurring [Member] | Level 3 [Member] | U.S. state and municipal securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 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 (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 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 | |
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 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 (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 0 | |
Fair Value, Recurring [Member] | Level 3 [Member] | Other [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities (amortized cost of $296,199 at September 30, 2020 and $61,155 at December 31, 2019) | 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 assets | 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 assets | 0 | 0 |
Fair Value, Recurring [Member] | Level 3 [Member] | Equity, corporate debt, and other securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets | $ 0 | $ 0 |
Fair Values of Assets and Liabilities (Fair Value of Other Financial Instruments) (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Assets | ||
Held to maturity securities | $ 136,099 | |
U.S. agency mortgage-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 110,566 | |
Asset-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 17,771 | |
Corporate debt securities [Member] | ||
Assets | ||
Held to maturity securities | 4,718 | |
U.S. state and municipal securities [Member] | ||
Assets | ||
Held to maturity securities | 1,404 | |
Non-agency commercial mortgage-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 1,141 | |
U.S. Treasury securities [Member] | ||
Assets | ||
Held to maturity securities | 228 | |
Certificates of deposit [Member] | ||
Assets | ||
Held to maturity securities | 200 | |
Foreign government agency securities [Member] | ||
Assets | ||
Held to maturity securities | 50 | |
Carrying Amount [Member] | ||
Assets | ||
Cash and cash equivalents | $ 23,708 | 21,668 |
Cash and investments segregated and on deposit for regulatory purposes | 15,494 | 11,807 |
Receivables from brokerage clients — net | 25,438 | 21,763 |
Held to maturity securities | 134,706 | |
Bank loans – net | 22,286 | 18,212 |
Other assets | 1,617 | 1,014 |
Liabilities | ||
Bank deposits | 320,717 | 220,094 |
Payables to brokerage clients | 52,006 | 39,220 |
Accrued expenses and other liabilities | 2,208 | 1,882 |
Long-term debt | 7,829 | 7,430 |
Carrying Amount [Member] | First Mortgage [Member] | ||
Assets | ||
Bank loans – net | 14,319 | 11,693 |
Carrying Amount [Member] | HELOCs [Member] | ||
Assets | ||
Bank loans – net | 908 | 1,113 |
Carrying Amount [Member] | Pledged asset lines [Member] | ||
Assets | ||
Bank loans – net | 6,885 | 5,206 |
Carrying Amount [Member] | Other [Member] | ||
Assets | ||
Bank loans – net | 174 | 200 |
Carrying Amount [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 109,325 | |
Carrying Amount [Member] | Asset-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 17,806 | |
Carrying Amount [Member] | Corporate debt securities [Member] | ||
Assets | ||
Held to maturity securities | 4,661 | |
Carrying Amount [Member] | U.S. state and municipal securities [Member] | ||
Assets | ||
Held to maturity securities | 1,301 | |
Carrying Amount [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 1,119 | |
Carrying Amount [Member] | U.S. Treasury securities [Member] | ||
Assets | ||
Held to maturity securities | 223 | |
Carrying Amount [Member] | Certificates of deposit [Member] | ||
Assets | ||
Held to maturity securities | 200 | |
Carrying Amount [Member] | Foreign government agency securities [Member] | ||
Assets | ||
Held to maturity securities | 50 | |
Carrying Amount [Member] | Other [Member] | ||
Assets | ||
Held to maturity securities | 21 | |
Portion at Other than Fair Value Measurement [Member] | ||
Assets | ||
Cash and cash equivalents | 23,708 | 21,668 |
Cash and investments segregated and on deposit for regulatory purposes | 15,494 | 11,807 |
Receivables from brokerage clients — net | 25,438 | 21,763 |
Held to maturity securities | 136,099 | |
Bank loans – net | 22,692 | 18,198 |
Other assets | 1,617 | 1,014 |
Liabilities | ||
Bank deposits | 320,717 | 220,094 |
Payables to brokerage clients | 52,006 | 39,220 |
Accrued expenses and other liabilities | 2,208 | 1,882 |
Long-term debt | 8,717 | 7,775 |
Portion at Other than Fair Value Measurement [Member] | First Mortgage [Member] | ||
Assets | ||
Bank loans – net | 14,733 | 11,639 |
Portion at Other than Fair Value Measurement [Member] | HELOCs [Member] | ||
Assets | ||
Bank loans – net | 900 | 1,153 |
Portion at Other than Fair Value Measurement [Member] | Pledged asset lines [Member] | ||
Assets | ||
Bank loans – net | 6,885 | 5,206 |
Portion at Other than Fair Value Measurement [Member] | Other [Member] | ||
Assets | ||
Bank loans – net | 174 | 200 |
Portion at Other than Fair Value Measurement [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 110,566 | |
Portion at Other than Fair Value Measurement [Member] | Asset-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 17,771 | |
Portion at Other than Fair Value Measurement [Member] | Corporate debt securities [Member] | ||
Assets | ||
Held to maturity securities | 4,718 | |
Portion at Other than Fair Value Measurement [Member] | U.S. state and municipal securities [Member] | ||
Assets | ||
Held to maturity securities | 1,404 | |
Portion at Other than Fair Value Measurement [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 1,141 | |
Portion at Other than Fair Value Measurement [Member] | U.S. Treasury securities [Member] | ||
Assets | ||
Held to maturity securities | 228 | |
Portion at Other than Fair Value Measurement [Member] | Certificates of deposit [Member] | ||
Assets | ||
Held to maturity securities | 200 | |
Portion at Other than Fair Value Measurement [Member] | Foreign government agency securities [Member] | ||
Assets | ||
Held to maturity securities | 50 | |
Portion at Other than Fair Value Measurement [Member] | Other [Member] | ||
Assets | ||
Held to maturity securities | 21 | |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | ||
Assets | ||
Cash and cash equivalents | 23,708 | 21,668 |
Cash and investments segregated and on deposit for regulatory purposes | 1,772 | 2,792 |
Receivables from brokerage clients — net | 0 | 0 |
Held to maturity securities | 0 | |
Bank loans – net | 0 | 0 |
Other assets | 0 | 0 |
Liabilities | ||
Bank deposits | 0 | 0 |
Payables to brokerage clients | 0 | 0 |
Accrued expenses and other liabilities | 0 | 0 |
Long-term debt | 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 | |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | Asset-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 0 | |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | Corporate debt securities [Member] | ||
Assets | ||
Held to maturity securities | 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 | |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 0 | |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | U.S. Treasury securities [Member] | ||
Assets | ||
Held to maturity securities | 0 | |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | Certificates of deposit [Member] | ||
Assets | ||
Held to maturity securities | 0 | |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | Foreign government agency securities [Member] | ||
Assets | ||
Held to maturity securities | 0 | |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | Other [Member] | ||
Assets | ||
Held to maturity securities | 0 | |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Cash and investments segregated and on deposit for regulatory purposes | 13,722 | 9,015 |
Receivables from brokerage clients — net | 25,438 | 21,763 |
Held to maturity securities | 136,099 | |
Bank loans – net | 22,692 | 18,198 |
Other assets | 1,617 | 1,014 |
Liabilities | ||
Bank deposits | 320,717 | 220,094 |
Payables to brokerage clients | 52,006 | 39,220 |
Accrued expenses and other liabilities | 2,208 | 1,882 |
Long-term debt | 8,717 | 7,775 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | First Mortgage [Member] | ||
Assets | ||
Bank loans – net | 14,733 | 11,639 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | HELOCs [Member] | ||
Assets | ||
Bank loans – net | 900 | 1,153 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | Pledged asset lines [Member] | ||
Assets | ||
Bank loans – net | 6,885 | 5,206 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | Other [Member] | ||
Assets | ||
Bank loans – net | 174 | 200 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 110,566 | |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | Asset-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 17,771 | |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | Corporate debt securities [Member] | ||
Assets | ||
Held to maturity securities | 4,718 | |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | U.S. state and municipal securities [Member] | ||
Assets | ||
Held to maturity securities | 1,404 | |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 1,141 | |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | U.S. Treasury securities [Member] | ||
Assets | ||
Held to maturity securities | 228 | |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | Certificates of deposit [Member] | ||
Assets | ||
Held to maturity securities | 200 | |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | Foreign government agency securities [Member] | ||
Assets | ||
Held to maturity securities | 50 | |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | Other [Member] | ||
Assets | ||
Held to maturity securities | 21 | |
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 brokerage clients — net | 0 | 0 |
Held to maturity securities | 0 | |
Bank loans – net | 0 | 0 |
Other assets | 0 | 0 |
Liabilities | ||
Bank deposits | 0 | 0 |
Payables to brokerage clients | 0 | 0 |
Accrued expenses and other liabilities | 0 | 0 |
Long-term debt | 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 | |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | Asset-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 0 | |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | Corporate debt securities [Member] | ||
Assets | ||
Held to maturity securities | 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 | |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 0 | |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | U.S. Treasury securities [Member] | ||
Assets | ||
Held to maturity securities | 0 | |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | Certificates of deposit [Member] | ||
Assets | ||
Held to maturity securities | 0 | |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | Foreign government agency securities [Member] | ||
Assets | ||
Held to maturity securities | 0 | |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | Other [Member] | ||
Assets | ||
Held to maturity securities | $ 0 |
Stockholders' Equity (Narrative) (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Apr. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
Jan. 30, 2019 |
|
Class of Stock [Line Items] | ||||||
Preferred stock, par value (USD per share) | $ 0.01 | $ 0.01 | ||||
Shares repurchased | $ 771,000,000 | $ 1,991,000,000 | ||||
Common Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Share repurchase, authorized amount | $ 4,000,000,000.0 | |||||
Shares repurchased (in shares) | 20,000,000 | 0 | 49,000,000 | |||
Shares repurchased | $ 771,000,000 | $ 2,000,000,000.0 | ||||
Depositary Shares [Member] | ||||||
Class of Stock [Line Items] | ||||||
Number of shares issued (in shares) | 2,500,000 | |||||
Ownership interest in Class G shares | 1.00% | |||||
Liquidation preference per share (USD per share) | $ 1,000 | |||||
Series G Preferred Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Fixed rate | 5.375% | 5.375% | ||||
Preferred stock, par value (USD per share) | $ 0.01 | |||||
Liquidation preference per share (USD per share) | $ 100,000 | $ 100,000 | ||||
Proceeds from offering | $ 2,470,000,000 |
Stockholders' Equity (Preferred Stock Issued and Outstanding) (Details) - USD ($) $ / shares in Units, $ in Millions |
9 Months Ended | ||
---|---|---|---|
Apr. 30, 2020 |
Sep. 30, 2020 |
Dec. 31, 2019 |
|
Class of Stock [Line Items] | |||
Shares issued (in shares) | 1,786,000 | 1,761,000 | |
Shares outstanding (in shares) | 1,786,000 | 1,761,000 | |
Carrying Value | $ 5,263 | $ 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% | ||
Series G Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Shares issued (in shares) | 25,000 | 0 | |
Shares outstanding (in shares) | 25,000 | 0 | |
Liquidation preference per share (USD per share) | $ 100,000 | $ 100,000 | |
Carrying Value | $ 2,470 | $ 0 | |
Dividend Rate in Effect | 5.375% | 5.375% | |
Dividend term | 5 years | ||
Series G Preferred Stock [Member] | Treasury Rate [Member] | |||
Class of Stock [Line Items] | |||
Floating Annual Rate | 4.971% | ||
Dividend term | 5 years |
Stockholders' Equity (Dividends Declared) (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Class of Stock [Line Items] | ||||
Dividends declared | $ 79.2 | $ 34.0 | $ 159.9 | $ 114.7 |
Series A Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Dividends declared | $ 0.0 | $ 0.0 | $ 14.0 | $ 14.0 |
Dividends declared, per share amount (USD per share) | $ 0 | $ 0 | $ 35.00 | $ 35.00 |
Series C Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Dividends declared | $ 9.0 | $ 9.0 | $ 27.0 | $ 27.0 |
Dividends declared, per share amount (USD per share) | $ 15.00 | $ 15.00 | $ 45.00 | $ 45.00 |
Series D Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Dividends declared | $ 11.2 | $ 11.2 | $ 33.5 | $ 33.5 |
Dividends declared, per share amount (USD per share) | $ 14.88 | $ 14.88 | $ 44.64 | $ 44.64 |
Series E Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Dividends declared | $ 13.8 | $ 13.8 | $ 27.7 | $ 27.7 |
Dividends declared, per share amount (USD per share) | $ 2,312.50 | $ 2,312.50 | $ 4,625.00 | $ 4,625.00 |
Series F Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Dividends declared | $ 0.0 | $ 0.0 | $ 12.5 | $ 12.5 |
Dividends declared, per share amount (USD per share) | $ 0 | $ 0 | $ 2,500.00 | $ 2,500.00 |
Series G Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Dividends declared | $ 45.2 | $ 0.0 | $ 45.2 | $ 0.0 |
Dividends declared, per share amount (USD per share) | $ 1,806.60 | $ 0 | $ 1,806.60 | $ 0 |
Accumulated Other Comprehensive Income (Components of Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Other comprehensive income (loss) before tax | ||||
Net unrealized gain (loss) | $ 97 | $ 51 | $ 7,361 | $ 496 |
Other reclassifications included in other revenue | (3) | (1) | (3) | (5) |
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale | 0 | 10 | 0 | 30 |
Other | 0 | 0 | 1 | 0 |
Other comprehensive income (loss), before tax | 94 | 60 | 7,359 | 521 |
Tax Effect | ||||
Net unrealized gain (loss) | (20) | (12) | (1,762) | (119) |
Other reclassifications included in other revenue | 1 | 0 | 1 | 1 |
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale | 0 | (3) | 0 | (7) |
Other | 0 | 0 | ||
Other comprehensive income (loss) | (19) | (15) | (1,761) | (125) |
Net of Tax | ||||
Net unrealized gain (loss) | 77 | 39 | 5,599 | 377 |
Other reclassifications included in other revenue | (2) | (1) | (2) | (4) |
Amortization of amounts previously recorded upon transfer from available for sale | 0 | 7 | 0 | 23 |
Other | 1 | 0 | ||
Other comprehensive income (loss), net of tax | $ 75 | $ 45 | $ 5,598 | $ 396 |
Accumulated Other Comprehensive Income (Accumulated Other Comprehensive Income Balances) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Mar. 31, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Accumulated Other Comprehensive Income | |||||
Beginning Balance | $ 5,611 | $ 99 | $ (252) | $ 88 | $ (252) |
Other net changes | 75 | 45 | 5,598 | 396 | |
Ending Balance | 5,686 | 144 | 5,686 | 144 | |
Net unrealized gain (loss), excluding transfers to available for sale from held to maturity [Member] | |||||
Accumulated Other Comprehensive Income | |||||
Other net changes | 77 | 39 | 4,542 | 358 | |
Net unrealized gain on securities transferred to available for sale from held to maturity [Member] | |||||
Accumulated Other Comprehensive Income | |||||
Other net changes | $ 19 | 1,057 | 19 | ||
Other reclassifications included in other revenue [Member] | |||||
Accumulated Other Comprehensive Income | |||||
Other net changes | $ (2) | (1) | (2) | (4) | |
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale [Member] | |||||
Accumulated Other Comprehensive Income | |||||
Other net changes | $ 7 | $ 23 | |||
Other [Member] | |||||
Accumulated Other Comprehensive Income | |||||
Other net changes | $ 1 |
Regulatory Requirements (Regulatory Capital and Ratios) (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
CSC [Member] | ||
Common Equity Tier 1 Risk-Based Capital | ||
Actual Amount | $ 17,438 | $ 17,660 |
Actual Ratio | 15.90% | 19.50% |
Minimum Capital Requirement Amount | $ 4,921 | $ 4,073 |
Minimum Capital Requirement Ratio | 4.50% | 4.50% |
Tier 1 Risk-Based Capital | ||
Actual Amount | $ 22,701 | $ 20,453 |
Actual Ratio | 20.80% | 22.60% |
Minimum Capital Requirement Amount | $ 6,562 | $ 5,431 |
Minimum Capital Requirement Ratio | 6.00% | 6.00% |
Total Risk-Based Capital | ||
Actual Amount | $ 22,735 | $ 20,472 |
Actual Ratio | 20.80% | 22.60% |
Minimum Capital Requirement Amount | $ 8,749 | $ 7,241 |
Minimum Capital Requirement Ratio | 8.00% | 8.00% |
Tier 1 Leverage | ||
Actual Amount | $ 22,701 | $ 20,453 |
Actual Ratio | 5.70% | 7.30% |
Minimum Capital Requirement Amount | $ 16,071 | $ 11,189 |
Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Supplemental Leverage Ratio | ||
Actual Amount | $ 22,701 | $ 20,453 |
Actual Ratio | 5.60% | 7.10% |
Minimum Capital Requirement Amount | $ 12,249 | $ 8,604 |
Minimum Capital Requirement Ratio | 3.00% | 3.00% |
CSB [Member] | ||
Common Equity Tier 1 Risk-Based Capital | ||
Actual Amount | $ 16,648 | $ 14,819 |
Actual Ratio | 19.10% | 20.70% |
Minimum to be Well Capitalized Amount | $ 5,656 | $ 4,649 |
Minimum to be Well Capitalized Ratio | 6.50% | 6.50% |
Minimum Capital Requirement Amount | $ 3,916 | $ 3,218 |
Minimum Capital Requirement Ratio | 4.50% | 4.50% |
Tier 1 Risk-Based Capital | ||
Actual Amount | $ 16,648 | $ 14,819 |
Actual Ratio | 19.10% | 20.70% |
Minimum to be Well Capitalized Amount | $ 6,962 | $ 5,722 |
Minimum to be Well Capitalized Ratio | 8.00% | 8.00% |
Minimum Capital Requirement Amount | $ 5,221 | $ 4,291 |
Minimum Capital Requirement Ratio | 6.00% | 6.00% |
Total Risk-Based Capital | ||
Actual Amount | $ 16,680 | $ 14,837 |
Actual Ratio | 19.20% | 20.70% |
Minimum to be Well Capitalized Amount | $ 8,702 | $ 7,152 |
Minimum to be Well Capitalized Ratio | 10.00% | 10.00% |
Minimum Capital Requirement Amount | $ 6,962 | $ 5,722 |
Minimum Capital Requirement Ratio | 8.00% | 8.00% |
Tier 1 Leverage | ||
Actual Amount | $ 16,648 | $ 14,819 |
Actual Ratio | 5.60% | 7.10% |
Minimum to be Well Capitalized Amount | $ 14,813 | $ 10,486 |
Minimum to be Well Capitalized Ratio | 5.00% | 5.00% |
Minimum Capital Requirement Amount | $ 11,850 | $ 8,389 |
Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Supplemental Leverage Ratio | ||
Actual Amount | $ 16,648 | $ 14,819 |
Actual Ratio | 5.50% | 6.80% |
Minimum Capital Requirement Amount | $ 9,076 | $ 6,497 |
Minimum Capital Requirement Ratio | 3.00% | 3.00% |
Regulatory Requirements (Narrative) (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total assets | $ 419,355 | $ 294,005 |
Charles Schwab Premier Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total assets | 28,300 | |
Trust Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total assets | $ 11,700 |
Regulatory Requirements (Net Capital and Net Capital Requirements) (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Banking and Thrift [Abstract] | ||
Net Capital | $ 2,166,000 | $ 3,700,000 |
Minimum net capital required | 1,000 | 250 |
2% of aggregate debit balances | 595,000 | 446,000 |
Net Capital in excess of required net capital | $ 1,571,000 | $ 3,254,000 |
Segment Information (Narrative) (Details) |
9 Months Ended |
---|---|
Sep. 30, 2020
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information (Financial Information for Reportable Segments) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|||
Net Revenues | ||||||
Net interest revenue | $ 1,343 | $ 1,631 | $ 4,304 | $ 4,921 | ||
Other | [1] | 64 | 49 | 161 | 198 | |
Total net revenues | 2,448 | 2,711 | 7,515 | 8,115 | ||
Expenses Excluding Interest | 1,559 | 1,475 | 4,691 | 4,379 | ||
Income before taxes on income | 889 | 1,236 | 2,824 | 3,736 | ||
Asset management and administration fees [Member] | ||||||
Net Revenues | ||||||
Asset management and administration fees and Trading revenue | 860 | 825 | 2,488 | 2,366 | ||
Trading revenue [Member] | ||||||
Net Revenues | ||||||
Asset management and administration fees and Trading revenue | [1] | 181 | 206 | 562 | 630 | |
Investor Services [Member] | ||||||
Net Revenues | ||||||
Net interest revenue | 948 | 1,182 | 3,028 | 3,531 | ||
Other | 51 | 36 | 122 | 115 | ||
Total net revenues | 1,781 | 1,944 | 5,372 | 5,746 | ||
Expenses Excluding Interest | 1,167 | 1,070 | 3,489 | 3,189 | ||
Income before taxes on income | 614 | 874 | 1,883 | 2,557 | ||
Investor Services [Member] | Asset management and administration fees [Member] | ||||||
Net Revenues | ||||||
Asset management and administration fees and Trading revenue | 643 | 586 | 1,826 | 1,679 | ||
Investor Services [Member] | Trading revenue [Member] | ||||||
Net Revenues | ||||||
Asset management and administration fees and Trading revenue | 139 | 140 | 396 | 421 | ||
Advisor Services [Member] | ||||||
Net Revenues | ||||||
Net interest revenue | 395 | 449 | 1,276 | 1,390 | ||
Other | 13 | 13 | 39 | 83 | ||
Total net revenues | 667 | 767 | 2,143 | 2,369 | ||
Expenses Excluding Interest | 392 | 405 | 1,202 | 1,190 | ||
Income before taxes on income | 275 | 362 | 941 | 1,179 | ||
Advisor Services [Member] | Asset management and administration fees [Member] | ||||||
Net Revenues | ||||||
Asset management and administration fees and Trading revenue | 217 | 239 | 662 | 687 | ||
Advisor Services [Member] | Trading revenue [Member] | ||||||
Net Revenues | ||||||
Asset management and administration fees and Trading revenue | $ 42 | $ 66 | $ 166 | $ 209 | ||
|
Subsequent Events (Details) - USD ($) |
Oct. 06, 2020 |
Oct. 31, 2020 |
Oct. 05, 2020 |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|---|---|---|
Subsequent Event [Line Items] | |||||
Common stock, shares authorized (shares) | 3,000,000,000 | 3,000,000,000 | |||
Insured Deposit Account Agreement Member [Member] | TD and its affiliates [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Basis spread on variable rate | 0.15% | 0.25% | |||
Floating rate investment floor | $ 20,000,000,000 | ||||
Reduction in deposit balance over 12 month period | 10,000,000,000 | ||||
Floor amount | $ 50,000,000,000 | ||||
Percentage of fixed rate investments | 80.00% | ||||
Renewal term | 5 years | ||||
Prior written notice period for termination | 2 years | ||||
Common Stock - Nonvoting [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Common stock, shares authorized (shares) | 300,000,000 | ||||
TD Ameritrade [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Number of shares issued in acquisition (in shares) | 586,000,000 | ||||
TD Ameritrade [Member] | Common Stock [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Number of shares issued in acquisition (in shares) | 509,000,000 | ||||
TD Ameritrade [Member] | Common Stock [Member] | TD Bank [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Number of shares issued in acquisition (in shares) | 177,000,000 | ||||
Maximum percentage common stock interest | 9.90% | ||||
TD Ameritrade [Member] | Common Stock - Nonvoting [Member] | TD Bank [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Number of shares issued in acquisition (in shares) | 77,000,000 | ||||
Number of shares exchanged (in shares) | 2,000,000 | ||||
Number of shares held (in shares) | 79,000,000 |
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