Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 26, 2016 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | SCHW | |
Entity Registrant Name | SCHWAB CHARLES CORP | |
Entity Central Index Key | 316,709 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,325,672,135 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Net Revenues: | |||||
Asset management and administration fees | [1] | $ 798 | $ 663 | $ 2,254 | $ 1,977 |
Interest revenue | 891 | 669 | 2,541 | 1,931 | |
Interest expense | (46) | (34) | (126) | (96) | |
Net interest revenue | 845 | 635 | 2,415 | 1,835 | |
Trading revenue | 190 | 228 | 623 | 658 | |
Other | 76 | 66 | 209 | 208 | |
Provision for loan losses | 5 | 5 | 5 | 11 | |
Total net revenues | 1,914 | 1,597 | 5,506 | 4,689 | |
Expenses Excluding Interest | |||||
Compensation and benefits | 609 | 548 | 1,837 | 1,669 | |
Professional services | 131 | 114 | 372 | 340 | |
Occupancy and equipment | 100 | 92 | 299 | 260 | |
Advertising and market development | 64 | 58 | 204 | 189 | |
Communications | 57 | 58 | 179 | 175 | |
Depreciation and amortization | 60 | 57 | 173 | 166 | |
Other | 99 | 87 | 273 | 256 | |
Total expenses excluding interest | 1,120 | 1,014 | 3,337 | 3,055 | |
Income before taxes on income | 794 | 583 | 2,169 | 1,634 | |
Taxes on income | 291 | 207 | 802 | 603 | |
Net Income | 503 | 376 | 1,367 | 1,031 | |
Preferred stock dividends and other | [2] | 33 | 11 | 99 | 45 |
Net Income Available to Common Stockholders | $ 470 | $ 365 | $ 1,268 | $ 986 | |
Weighted-Average Common Shares Outstanding: Basic | 1,324 | 1,316 | 1,322 | 1,315 | |
Weighted-Average Common Shares Outstanding: Diluted | 1,334 | 1,328 | 1,332 | 1,326 | |
Earnings Per Common Share: Basic | $ 0.36 | $ 0.28 | $ 0.96 | $ 0.75 | |
Earnings Per Common Share: Diluted | 0.35 | 0.28 | 0.95 | 0.74 | |
Dividends Declared Per Common Share | $ 0.07 | $ 0.06 | $ 0.20 | $ 0.18 | |
[1] | Includes fee waivers of $41 and $166 during the third quarters of 2016 and 2015, respectively and $193 and $519 during the first nine months of 2016 and 2015, respectively, relating to Schwab-sponsored money market funds. | ||||
[2] | Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested restricted stock units. |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Schwab Funds money market funds [Member] | ||||
Fee waivers | $ 41 | $ 166 | $ 193 | $ 519 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Condensed Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net income | $ 503 | $ 376 | $ 1,367 | $ 1,031 |
Change in net unrealized gain on securities available for sale: | ||||
Net unrealized gain (loss) | 77 | (249) | 266 | (233) |
Other reclassifications included in other revenue | (3) | |||
Other | 1 | |||
Other comprehensive income (loss), before tax | 77 | (249) | 264 | (233) |
Income tax effect | (29) | 94 | (99) | 87 |
Other comprehensive income (loss), net of tax | 48 | (155) | 165 | (146) |
Comprehensive Income | $ 551 | $ 221 | $ 1,532 | $ 885 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | [1] |
Assets | |||
Cash and cash equivalents | $ 10,431 | $ 11,978 | |
Cash and investments segregated and on deposit for regulatory purposes (including resale agreements of $9,425 at September 30, 2016 and $8,088 at December 31, 2015) | 20,077 | 19,598 | |
Receivables from brokers, dealers, and clearing organizations | 947 | 582 | |
Receivables from brokerage clients — net | 16,380 | 17,313 | |
Other securities owned — at fair value | 858 | 533 | |
Securities available for sale | 75,791 | 65,646 | |
Securities held to maturity (fair value — $67,843 at September 30, 2016 and $50,088 at December 31, 2015) | 66,056 | 50,007 | |
Bank loans — net | 14,858 | 14,334 | |
Equipment, office facilities, and property — net | 1,266 | 1,145 | |
Goodwill | 1,227 | 1,227 | |
Intangible assets — net | 154 | 181 | |
Other assets | 1,292 | 1,161 | |
Total assets | 209,337 | 183,705 | |
Liabilities and Stockholders' Equity | |||
Bank deposits | 149,630 | 129,502 | |
Payables to brokers, dealers, and clearing organizations | 3,497 | 2,588 | |
Payables to brokerage clients | 32,961 | 33,185 | |
Accrued expenses and other liabilities | 1,902 | 2,151 | |
Short-term borrowings | 3,001 | ||
Long-term debt | 2,876 | 2,877 | |
Total liabilities | 193,867 | 170,303 | |
Stockholders' equity: | |||
Preferred stock — $.01 par value per share; aggregate liquidation preference of $2,235 at September 30, 2016 and $1,485 at December 31, 2015 | 2,192 | 1,459 | |
Common stock — 3 billion shares authorized; $.01 par value per share; 1,487,543,446 shares issued | 15 | 15 | |
Additional paid-in capital | 4,254 | 4,152 | |
Retained earnings | 12,261 | 11,253 | |
Treasury stock, at cost — 163,516,791 shares at September 30, 2016 and 167,205,881 shares at December 31, 2015 | (3,283) | (3,343) | |
Accumulated other comprehensive income | 31 | (134) | |
Total stockholders' equity | 15,470 | 13,402 | |
Total liabilities and stockholders' equity | $ 209,337 | $ 183,705 | |
[1] | Adjusted for the retrospective adoption of ASU 2015-03. See "Notes - 2. New Accounting Standards" for additional information. |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Cash and investments segregated and on deposit for regulatory purposes, resale agreements | $ 9,425 | $ 8,088 |
Securities held to maturity, Fair Value | $ 67,843 | $ 50,088 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, aggregate liquidation preference | $ 2,235 | $ 1,485 |
Common stock, shares authorized | 3,000,000,000 | 3,000,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares issued | 1,487,543,446 | 1,487,543,446 |
Treasury stock, shares | 163,516,791 | 167,205,881 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | ||
Cash Flows from Operating Activities | |||
Net income | $ 1,367 | $ 1,031 | |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||
Provision for loan losses | (5) | (11) | |
Stock-based compensation | 101 | 98 | |
Depreciation and amortization | 173 | 166 | |
Premium amortization, net, on securities available for sale and securities held to maturity | 181 | 119 | |
Other | 25 | 7 | |
Net change in: | |||
Cash and investments segregated and on deposit for regulatory purposes | (479) | 3,538 | |
Receivables from brokers, dealers, and clearing organizations | (370) | (110) | |
Receivables from brokerage clients | 928 | (1,426) | |
Other securities owned | (325) | 46 | |
Other assets | (61) | (59) | |
Payables to brokers, dealers, and clearing organizations | (111) | 473 | |
Payables to brokerage clients | (224) | (3,265) | |
Accrued expenses and other liabilities | (226) | (253) | |
Net cash provided by operating activities | 974 | 354 | |
Cash Flows from Investing Activities | |||
Purchases of securities available for sale | (22,782) | (17,497) | |
Proceeds from sales of securities available for sale | 4,645 | 599 | |
Principal payments on securities available for sale | 8,652 | 5,172 | |
Purchases of securities held to maturity | (19,439) | (8,824) | |
Principal payments on securities held to maturity | 3,841 | 2,709 | |
Net increase in bank loans | (600) | (863) | |
Purchase of equipment, office facilities, and property | (272) | (204) | |
Purchases of Federal Home Loan Bank stock | (152) | ||
Proceeds from sales of Federal Home Loan Bank stock | 88 | 8 | |
Other investing activities | (25) | (18) | |
Net cash used for investing activities | (26,044) | (18,918) | |
Cash Flows from Financing Activities | |||
Net change in bank deposits | 20,128 | 16,202 | |
Proceeds from short-term borrowings | 8,505 | ||
Repayment of short-term borrowings | (5,504) | ||
Issuance of long-term debt | 998 | ||
Repayment of long-term debt | (5) | (6) | |
Net proceeds from preferred stock offerings | 725 | 581 | |
Dividends paid | (365) | (288) | |
Proceeds from stock options exercised and other | 31 | 67 | |
Other financing activities | 8 | 13 | |
Net cash provided by financing activities | 23,523 | 17,567 | |
Decrease in Cash and Cash Equivalents | (1,547) | (997) | |
Cash and Cash Equivalents at Beginning of Period | 11,978 | [1] | 11,363 |
Cash and Cash Equivalents at End of Period | 10,431 | 10,366 | |
Cash paid during the period for: | |||
Interest | 141 | 107 | |
Income taxes | 757 | 598 | |
Non-cash investing activity: | |||
Securities purchased during the period but settled after period end | $ 1,021 | $ 230 | |
[1] | Adjusted for the retrospective adoption of ASU 2015-03. See "Notes - 2. New Accounting Standards" for additional information. |
Introduction and Basis of Prese
Introduction and Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Introduction and Basis of Presentation [Abstract] | |
Introduction and Basis of Presentation | 1. Introduction and Basis of Presentation CSC is a savings and loan holding company engaged , through its subsidiaries, in wealth management, securities brokerage, banking, money management, custody, and financial advisory services. Schwab is a securities broker-dealer with over 330 domestic branch offices in 46 states, as well as a branch in each of the Commonwealth of Puerto Rico and London, England. In addition, Schwab serves clients in Hong Kong through one of CSC’s subsidiaries. Other subsidiaries include Schwab Bank, a federal savings bank, and CSIM, the investment advisor for Schwab’s proprietary mutual funds, which are referred to as the Schwab Funds ® , and for Schwab’s exchange-traded funds, which are referred to as the Schwab ETFs™. The accompanying unaudited condensed consolidated financial statements include CSC and its majority-owned subsidiaries (collectively , referred to as the Company). Intercompany balances and transactions have been eliminated. These condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the U.S., which require management to make certain estimates and assumptions that affect the reported amounts in the accompanying financial statements. Certain estimates relate to other-than-temporary impairment (OTTI) of securities available for sale and securities held to maturity, valuation of goodwill, allowance for loan losses, and legal and regulatory reserves. Actual results may differ from those estimates. These condensed consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the periods presented. These adjustments are of a normal recurring nature. The Company’s results for any interim period are not necessarily indicative of results for a full year or any other interim period. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the 2015 Form 10-K . The Company’s significant accounting policies are included in “Notes – 2. Summary of Significant Accounting Policies” in the 2015 Form 10-K . There have been no significant changes to these accounting policies during the first nine months of 2016. Principles of Consolidation The Company evaluates for consolidation all entities in which it has financial interests, except for money market funds which are specifically excluded from consolidation guidance. For an entity subject to consolidation, the Company evaluates whether the Company’s interest in the entity constitutes a controlling financial interest under either the variable interest entity (VIE) model or a voting interest entity (VOE) model. Based upon the Company’s assessments, the Company is not deemed to have a controlling financial interest in and, therefore, is not required to consolidate any VIEs. See “Notes – 5. Variable Interest Entities” for further information about VIEs. The Company consolidates all VOEs in which it has majority voting interests. For investments in entities in which the Company does not have a controlling financial interest, the Company accounts for those investments under the equity method of accounting when the Company has the ability to exercise significant influence over operating and financing decisions of the entity. Investments in entities for which the Company does not have the ability to exercise significant influence are generally carried at cost. Both equity method and cost method investments are included in other assets on the condensed consolidated balance sheets. |
New Accounting Standards
New Accounting Standards | 9 Months Ended |
Sep. 30, 2016 | |
New Accounting Standards [Abstract] | |
New Accounting Standards | 2. New Accounting Standards Adoption of New Accounting Standards On January 1, 2016, the Company adopted ASU 2015-02, “Consolidation (Topic 810),” which amends the analysis a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The new guidance is applicable to all entities but provides an exception for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds . The adoption of ASU 2015-02 did not have an impact on the Company’s consolidated financial statements or EPS as the new guidance did not change any existing consolidation conclusions reached in accordance with the previous guidance. On January 1, 2016, the Company adopted ASU 2015-03, “Interest – Imputation of Interest (Subtopic 835-30).” ASU 2015-03 requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. Previously, debt issuance costs were presented as a separate asset on the balance sheet. The guidance in ASU 2015-03 has been applied on a retrospective basis which requires the adjustment of all prior period consolidated balance sheets. The effect of the adoption on the Company’s December 31, 2015 consolidated balance sheet was to decrease other assets and total assets by $13 million and to decrease long-term debt and total liabilities by $13 million. A similar amount was also reclassified in the prior year. The Company considers the reclassifications immaterial. On January 1, 2016, the Company also adopted ASU 2015-05, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40),” which provides new guidance that clarifies customer’s accounting for fees paid in a cloud computing arrangement. Under the new guidance, if a cloud computing arrangement includes a software license, the customer shall account for the software license element of the arrangement consistent with the acquisition of other software licenses. If the cloud computing arrangement does not include a software license, the customer shall account for the arrangement as a service contract. The guidance applies to all new arrangements entered into after January 1, 2016. The adoption of ASU 2015-05 did not have an impact on the Company’s financial statements or EPS. New Accounting Standards Not Yet Adopted In May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which provides new guidance on revenue recognition. The guidance clarifies that revenue from contracts with customers should be recognized in a manner that depicts the timing of the related transfer of goods or performance of services at an amount that reflects the expected consideration. The new guidance will become effective January 1, 2018, with early adoption permitted as of January 1, 2017. Entities may elect either full or modified retrospective transition. Full retrospective transition will require a cumulative effect adjustment to retained earnings as of the earliest comparative period presented. Modified retrospective transition will require a cumulative effect adjustment to retained earnings as of the beginning of the reporting period in which the entity first applies the new guidance. The Company is currently evaluating the impact of this new guidance on its financial statements and EPS. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10),” which will become effective January 1, 2018. This new guidance addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The main provisions of the guidance include (i) most equity investments are to be measured at fair value with changes in fair value recognized in net income, except for those accounted for under the equity method or those that do not have readily determinable fair values for which a practical expedient can be elected, (ii) requires the use of an exit price notion when measuring the fair value of financial instruments for disclosure purposes, and (iii) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial instrument on the balance sheet or in the accompanying notes. The Company is currently evaluating the impact of this new guidance on its financial statements and EPS. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” which amends the accounting for leases by lessees and lessors. The primary change as a result of the new standard is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases. Additional changes include accounting for lease origination and executory costs, required lessee reassessments during the lease term due to changes in circumstances and expanded lease disclosures. ASU 2016-02 will become effective January 1, 2019, with early adoption permitted, and requires entities to apply the new guidance using a modified retrospective transition. Modified retrospective transition requires entities to apply the new guidance as of the beginning of the earliest comparative period presented in the financial statements in which the entity first applies the new standard. Certain transition reliefs are permitted if elected by the entity. The Company is currently evaluating the impact of this new guidance on its financial statements and EPS. In March 2016, the FASB issued ASU 2016-09, “Stock Compensation – Improvements to Employee Share-Based Payment Accounting (Topic 718)” which amends certain aspects of how an entity accounts for share-based payments to employees. The new guidance requires entities to recognize the income tax effects of share-based awards in the income statement when the awards vest or are settled, rather than recording such effects in additional paid-in capital. Entities will also be permitted to elect to account for forfeitures of share-based payments as they occur or continue with current practice which requires estimating the number of awards expected to be forfeited and adjusting the estimate when it is likely to change. ASU 2016-09 will become effective January 1, 2017, with early adoption permitted. The change in recognition of income tax effects of share-based awards will be applied prospectively. If an entity elects to account for forfeitures of share-based payments as they occur, such change will be applied using a modified retrospective transition method, with a cumulative-effect adjustment to retained earnings. The Company is currently evaluating the impact of this new guidance on its financial statements and EPS . In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” which provides new guidance for recognizing impairment of most debt instruments measured at amortized cost, including loans and held to maturity debt securities. The new guidance will require estimating expected credit losses (ECL) 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 ECL 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. The new guidance also amends the OTTI model for available for sale 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. ASU 2016-13 will become effective January 1, 2020, with early adoption permitted as of January 1, 2019. The new guidance will be applied 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 available for sale debt securities for which an OTTI had been recognized before the effective date. The Company is currently evaluating the impact of this new guidance on its financial statements and EPS. |
Securities Available for Sale a
Securities Available for Sale and Securities Held to Maturity | 9 Months Ended |
Sep. 30, 2016 | |
Securities Available for Sale and Securities Held to Maturity [Abstract] | |
Securities Available for Sale and Securities Held to Maturity | 3. Securities Available for Sale and Securities Held to Maturity The amortized cost, gross unrealized gains and losses, and fair value of securities available for sale and securities held to maturity are as follows: Gross Gross Amortized Unrealized Unrealized Fair September 30, 2016 Cost Gains Losses Value Securities available for sale: U.S. agency mortgage-backed securities $ 33,195 $ 219 $ 44 $ 33,370 Asset-backed securities 21,736 30 266 21,500 Corporate debt securities 10,067 54 2 10,119 U.S. Treasury securities 4,966 33 - 4,999 U.S. agency notes 2,206 - 1 2,205 Certificates of deposit 2,295 2 1 2,296 U.S. state and municipal securities 1,012 26 1 1,037 Commercial paper 214 - - 214 Non-agency commercial mortgage-backed securities 51 - - 51 Total securities available for sale $ 75,742 $ 364 $ 315 $ 75,791 Securities held to maturity: U.S. agency mortgage-backed securities $ 64,836 $ 1,738 $ 4 $ 66,570 Non-agency commercial mortgage-backed securities 997 43 - 1,040 U.S. Treasury securities 223 10 - 233 Total securities held to maturity $ 66,056 $ 1,791 $ 4 $ 67,843 December 31, 2015 Securities available for sale: U.S. agency mortgage-backed securities $ 22,014 $ 183 $ 48 $ 22,149 Asset-backed securities 21,784 7 306 21,485 Corporate debt securities 10,764 14 31 10,747 U.S. Treasury securities 5,719 2 17 5,704 U.S. agency notes 3,177 - 27 3,150 Certificates of deposit 1,685 1 3 1,683 U.S. state and municipal securities 414 10 - 424 Non-agency commercial mortgage-backed securities 298 1 - 299 Other securities 5 - - 5 Total securities available for sale $ 65,860 $ 218 $ 432 $ 65,646 Securities held to maturity: U.S. agency mortgage-backed securities $ 48,785 $ 391 $ 293 $ 48,883 Non-agency commercial mortgage-backed securities 999 6 20 985 U.S. Treasury securities 223 - 3 220 Total securities held to maturity $ 50,007 $ 397 $ 316 $ 50,088 Schwab Bank pledges securities issued by federal agencies to secure certain trust deposits. The fair value of these pledged securities was $170 million at September 30, 2016 . A summary of securities with unrealized losses, aggregated by category and period of continuous unrealized loss, is as follows: Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2016 Value Losses Value Losses Value Losses Securities available for sale: U.S. agency mortgage-backed securities $ 10,233 $ 21 $ 2,672 $ 23 $ 12,905 $ 44 Asset-backed securities 1,235 14 10,504 252 11,739 266 Corporate debt securities 758 1 882 1 1,640 2 U.S. agency notes 499 1 - - 499 1 Certificates of deposit 544 1 200 - 744 1 U.S. state and municipal securities 124 1 - - 124 1 Total $ 13,393 $ 39 $ 14,258 $ 276 $ 27,651 $ 315 Securities held to maturity: U.S. agency mortgage-backed securities $ 2,475 $ 4 $ - $ - $ 2,475 $ 4 Total $ 2,475 $ 4 $ - $ - $ 2,475 $ 4 Total securities with unrealized losses (1) $ 15,868 $ 43 $ 14,258 $ 276 $ 30,126 $ 319 December 31, 2015 Securities available for sale: U.S. agency mortgage-backed securities $ 8,541 $ 47 $ 813 $ 1 $ 9,354 $ 48 Asset-backed securities 17,127 240 2,743 66 19,870 306 Corporate debt securities 5,433 25 942 6 6,375 31 U.S. Treasury securities 5,010 17 - - 5,010 17 U.S. agency notes 1,281 10 1,547 17 2,828 27 Certificates of deposit 773 2 599 1 1,372 3 Total $ 38,165 $ 341 $ 6,644 $ 91 $ 44,809 $ 432 Securities held to maturity: U.S. agency mortgage-backed securities $ 24,219 $ 253 $ 1,842 $ 40 $ 26,061 $ 293 Non-agency commercial mortgage-backed securities 729 20 - - 729 20 U.S. Treasury securities 220 3 - - 220 3 Total $ 25,168 $ 276 $ 1,842 $ 40 $ 27,010 $ 316 Total securities with unrealized losses (2) $ 63,333 $ 617 $ 8,486 $ 131 $ 71,819 $ 748 (1) The number of investment positions with unrealized losses totaled 339 for securities available for sale and 24 for securities held to maturity. (2) The number of investment positions with unrealized losses totaled 409 for securities available for sale and 286 for securities held to maturity. Management evaluates whether securities available for sale and securities held to maturity are OTTI on a quarterly basis as described in “Notes – 2. Summary of Significant Accounting Policies” in the 2015 Form 10-K. The maturities of securities available for sale and securities held to maturity are as follows: After 1 year After 5 years Within through through After September 30, 2016 1 year 5 years 10 years 10 years Total Securities available for sale: U.S. agency mortgage-backed securities (1) $ - $ 3,417 $ 16,966 $ 12,987 $ 33,370 Asset-backed securities - 9,125 4,150 8,225 21,500 Corporate debt securities 2,233 7,886 - - 10,119 U.S. Treasury securities 200 4,592 207 - 4,999 U.S. agency notes - 2,205 - - 2,205 Certificates of deposit 876 1,420 - - 2,296 U.S. state and municipal securities - - 51 986 1,037 Commercial paper 214 - - - 214 Non-agency commercial mortgage-backed securities - - - 51 51 Total fair value $ 3,523 $ 28,645 $ 21,374 $ 22,249 $ 75,791 Total amortized cost $ 3,517 $ 28,473 $ 21,386 $ 22,366 $ 75,742 Securities held to maturity: U.S. agency mortgage-backed securities (1) $ - $ 4,201 $ 22,947 $ 39,422 $ 66,570 Non-agency commercial mortgage-backed securities (1) - - 376 664 1,040 U.S. Treasury securities - - 233 - 233 Total fair value $ - $ 4,201 $ 23,556 $ 40,086 $ 67,843 Total amortized cost $ - $ 4,019 $ 22,605 $ 39,432 $ 66,056 (1) Mortgage-backed securities have been allocated to maturity groupings based on final contractual maturities. Actual maturities will differ from final contractual maturities because borrowers on a certain portion of loans underlying these securities have the right to prepay their obligations. Proceeds and gross realized gains and losses from sales of securities available for sale are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Proceeds $ 571 $ 5 $ 4,645 $ 599 Gross realized gains - - 3 1 Gross realized losses - - - 1 |
Bank Loans and Related Allowanc
Bank Loans and Related Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2016 | |
Bank Loans and Related Allowance for Loan Losses [Abstract] | |
Bank Loans and Related Allowance for Loan Losses | 4. Bank Loans and Related Allowance for Loan Losses The composition of bank loans and delinquency analysis by loan segment is as follows: >90 days past Total past due Allowance Total 30-59 days 60-89 days due and other and other Total for loan bank September 30, 2016 Current past due past due nonaccrual loans nonaccrual loans loans losses loans - net Residential real estate mortgages $ 8,660 $ 8 $ 4 $ 15 $ 27 $ 8,687 $ 15 $ 8,672 Home equity loans and lines of credit 2,456 4 1 11 16 2,472 10 2,462 Pledged asset lines 3,644 - - 2 2 3,646 - 3,646 Other 79 - - - - 79 1 78 Total bank loans $ 14,839 $ 12 $ 5 $ 28 $ 45 $ 14,884 $ 26 $ 14,858 December 31, 2015 Residential real estate mortgages $ 8,304 $ 11 $ 1 $ 18 $ 30 $ 8,334 $ 20 $ 8,314 Home equity loans and lines of credit 2,720 4 1 10 15 2,735 11 2,724 Pledged asset lines 3,228 3 1 - 4 3,232 - 3,232 Other 64 - - - - 64 - 64 Total bank loans $ 14,316 $ 18 $ 3 $ 28 $ 49 $ 14,365 $ 31 $ 14,334 First Mortgages and HELOCs include unamortized premiums and discounts and direct origination costs of $78 million and $80 million at September 30, 2016 and December 31, 2015, respectively. The Company had commitments to extend credit related to unused HELOCs, PALs, and other lines of credit, which totaled $ 8.2 billion and $7.4 billion at September 30, 2016 and December 31, 2015, respectively. The Company had commitments to purchase First Mortgage loans of $898 million and $260 million at September 30, 2016 and December 31, 2015, respectively. All PALs were fully collateralized by securities with fair values in excess of borrowings at September 30, 2016 and December 31, 2015. Schwab Bank provides a co-branded loan origination program for Schwab Bank clients (the Program) with Quicken Loans, Inc. (Quicken Loans ® ). Pursuant to the Program, Quicken Loans originates and services First Mortgages and HELOCs for Schwab Bank clients. Under the Program, Schwab Bank purchases certain First Mortgages and HELOCs that are originated by Quicken Loans. Schwab Bank purchased First Mortgages of $858 million and $469 million during the third quarters of 2016 and 2015, respectively, and $2.1 billion and $1.5 billion during the first nine months of 2016 and 2015, respectively. Schwab purchased HELOCs with commitments of $93 million and $150 million during the third quarters of 2016 and 2015, respectively, and $315 million and $432 million during the first nine months of 2016 and 2015, respectively. Credit Quality Changes in the allowance for loan losses were as follows: Three Months Ended September 30, 2016 September 30, 2015 Residential Home equity Residential Home equity real estate loans and real estate loans and mortgages lines of credit Other Total mortgages lines of credit Total Balance at beginning of period $ 20 $ 10 $ 1 $ 31 $ 23 $ 13 $ 36 Charge-offs - - - - - - - Recoveries - - - - 1 - 1 Provision for loan losses (5) - - (5) (4) (2) (6) Balance at end of period $ 15 $ 10 $ 1 $ 26 $ 20 $ 11 $ 31 Nine Months Ended September 30, 2016 September 30, 2015 Residential Home equity Residential Home equity real estate loans and real estate loans and mortgages lines of credit Other Total mortgages lines of credit Total Balance at beginning of period $ 20 $ 11 $ - $ 31 $ 29 $ 13 $ 42 Charge-offs (1) - - (1) - (2) (2) Recoveries 1 - - 1 1 2 3 Provision for loan losses (5) (1) 1 (5) (10) (2) (12) Balance at end of period $ 15 $ 10 $ 1 $ 26 $ 20 $ 11 $ 31 Substantially all of the bank loans were collectively evaluated for impairment at September 30, 2016 and December 31, 2015. There were no loans accruing interest that were contractually 90 days or more past due at September 30, 2016 or December 31, 2015. Nonperforming assets, which include nonaccrual loans and other real estate owned, totaled $35 million and $36 million at September 30, 2016 and December 31, 2015, respectively. Impaired assets, which include nonaccrual loans, other real estate owned and troubled debt restructurings, totaled $48 million and $50 million at September 30, 2016 and December 31, 2015, respectively. Troubled debt restructurings wer e no t material at September 30, 2016 or December 31, 2015. In addition to monitoring delinquency, the Company monitors the credit quality of First Mortgages and HELOCs by stratifying the portfolios by the following: · y ear of origination ; · b orrower FICO scores at origination ( Origination FICO ); · updated borrower FICO scores (U pdated FICO ); · loan-to-value ratios at origination (O rigination LTV ); and · estimated current LTV ratios (E stimated Current LTV ). Borrowers’ FICO scores are provided by an independent third-party credit reporting service and were last updated in September 2016. 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 estimated by reference to a home price appreciation index. As of September 30, 2016 and December 31, 2015 , 48% of the Company’s HELOC and First Mortgage portfolio was concentrated in California. These loans have performed in a manner consistent with the portfolio as a whole. The credit quality indicators of the Company’s bank loan portfolio are detailed below. Weighted Percent of Average Utilization Loans on September 30, 2016 Balance Updated FICO Rate (1) Nonaccrual Status Residential real estate mortgages: Estimated Current LTV < 70% $ 7,994 775 N/A 0.02 % >70% – < 90% 645 766 N/A 0.18 % >90% – < 100% 22 732 N/A 3.48 % >100% 26 719 N/A 13.54 % Total $ 8,687 774 N/A 0.08 % Home equity loans and lines of credit: Estimated Current LTV < 70% $ 2,146 772 36 % 0.15 % >70% – < 90% 270 758 49 % 0.55 % >90% – < 100% 33 750 60 % 1.66 % >100% 23 737 65 % 3.05 % Total $ 2,472 770 37 % 0.24 % Pledged asset lines: Weighted-Average LTV =70% $ 3,646 763 47 % - (1) The Utilization Rate is calculated using the outstanding balance divided by the associated total line of credit. N/A Not applicable. Residential Home equity real estate loans and September 30, 2016 mortgages lines of credit Year of origination Pre-2012 $ 1,100 $ 1,766 2012 1,263 111 2013 1,950 206 2014 766 166 2015 1,599 155 2016 2,009 68 Total $ 8,687 $ 2,472 Origination FICO <620 $ 8 $ - 620 – 679 91 14 680 – 739 1,378 451 > 740 7,210 2,007 Total $ 8,687 $ 2,472 Origination LTV < 70% $ 6,410 $ 1,701 >70% – < 90% 2,267 757 >90% – < 100% 10 14 Total $ 8,687 $ 2,472 Weighted Percent of Average Utilization Loans on December 31, 2015 Balance Updated FICO Rate (1) Nonaccrual Status Residential real estate mortgages: Estimated Current LTV < 70% $ 7,508 774 N/A 0.03 % >70% – < 90% 759 764 N/A 0.31 % >90% – < 100% 37 736 N/A 5.54 % >100% 30 713 N/A 7.72 % Total $ 8,334 773 N/A 0.11 % Home equity loans and lines of credit: Estimated Current LTV < 70% $ 2,277 772 37 % 0.09 % >70% – < 90% 373 760 50 % 0.48 % >90% – < 100% 48 748 63 % 1.02 % >100% 37 739 67 % 1.79 % Total $ 2,735 770 39 % 0.18 % Pledged asset lines: Weighted-Average LTV =70% $ 3,232 764 49 % - (1) The Utilization Rate is calculated using the outstanding balance divided by the associated total line of credit. N/A Not applicable. Residential Home equity real estate loans and December 31, 2015 mortgages lines of credit Year of origination Pre-2012 $ 1,306 $ 2,048 2012 1,644 125 2013 2,450 232 2014 1,021 188 2015 1,913 142 Total $ 8,334 $ 2,735 Origination FICO <620 $ 10 $ - 620 – 679 88 16 680 – 739 1,381 498 > 740 6,855 2,221 Total $ 8,334 $ 2,735 Origination LTV < 70% $ 5,913 $ 1,858 >70% – < 90% 2,408 860 >90% – < 100% 13 17 Total $ 8,334 $ 2,735 |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2016 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | 5. Variable Interest Entities A VIE requires consolidation by the entity’s primary beneficiary. The Company evaluates all entities in which it has a financial interest to determine if the entity is a VIE and if so, whether the Company is the primary beneficiary. See the “Principles of Consolidation” section of “Notes – 1. Introduction and Basis of Presentation” in the 2015 Form 10-K, for discussion of the Company’s evaluations of VIEs and whether it is deemed to be the primary beneficiary of any VIEs in which it holds an interest. The Company was not the primary beneficiary of, and therefore, not required to consolidate any VIEs at September 30, 2016 and December 31, 2015. Community Reinvestment Act investments Schwab Bank is subject to the Community Reinvestment Act (CRA). The CRA is intended to encourage banks to help meet the credit needs of the communities in which they operate, including low and moderate income neighborhoods, consistent with safe and sound banking operations. As part of Schwab Bank’s community reinvestment initiatives, Schwab Bank invests with other institutional investors in funds that make equity investments in multifamily affordable housing properties. Schwab Bank receives tax credits and other tax benefits for these investments. Schwab Bank’s Low-Income Housing Tax Credit (LIHTC) investments are accounted for using the proportional amortization method. Amortization, tax credits, and other tax benefits recognized in relation to LIHTC investments are included in taxes on income on the condensed consolidated statements of income. As of September 30, 2016 and December 31, 2015, the majority of the Company’s VIEs related to Schwab Bank’s LIHTC investments. The carrying value of the LIHTC investments was $ 153 million and $104 million as of September 30, 2016 and December 31, 2015, respectively, which is included in other assets on the condensed consolidated balance sheets. Schwab Bank recorded liabilities of $ 110 million and $84 million for unfunded commitments related to LIHTC investments at September 30, 2016 and December 31, 2015, respectively, which are included in accrued expenses and other liabilities on the condensed consolidated balance sheets. Schwab Bank’s funding of these remaining commitments is dependent upon the occurrence of certain conditions and Schwab Bank expects to pay substantially all of these commitments between 2016 and 20 19 . Aggregate assets, liabilities and maximum exposure to loss The aggregate assets, liabilities, and maximum exposure to loss from those VIEs in which the Company holds a variable interest, but as to which the Company has concluded it is not the primary beneficiary, are summarized in the table below: September 30, 2016 December 31, 2015 Maximum Maximum Aggregate Aggregate exposure Aggregate Aggregate exposure assets liabilities to loss assets liabilities to loss LIHTC investments $ 153 $ 110 $ 153 $ 104 $ 84 $ 104 Other CRA investments (1) 55 - 65 57 - 66 Total $ 208 $ 110 $ 218 $ 161 $ 84 $ 170 (1) Other CRA investments are recorded using either the cost method or the equity method. Aggregate assets are included in either other assets or bank loans – net on the condensed consolidated balance sheets. The Company’s maximum exposure to loss would result from the loss of the investments, including any committed amounts. During the nine months ended September 30, 2016 and 2015, the Company did not provide or intend to provide financial or other support to the VIEs that it was not contractually required to provide. |
Bank Deposits
Bank Deposits | 9 Months Ended |
Sep. 30, 2016 | |
Bank Deposits [Abstract] | |
Bank Deposits | 6. Bank Deposits Bank deposits consist of interest-bearing and non-interest-bearing deposits as follows: September 30, December 31, 2016 2015 Interest-bearing deposits: Deposits swept from brokerage accounts $ 127,866 $ 108,137 Checking 13,543 12,822 Savings and other 7,643 7,896 Total interest-bearing deposits 149,052 128,855 Non-interest-bearing deposits 578 647 Total bank deposits $ 149,630 $ 129,502 |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2016 | |
Borrowings [Abstract] | |
Borrowings | 7. Borrowings Long-term debt was net of unamortized debt discounts/premiums and debt issuance costs of $25 million and $29 million at September 30, 2016 and December 31, 2015, respectively. September 30, December 31, 2016 2015 Senior Notes $ 2,556 $ 2,553 (1) Senior Medium-Term Notes 250 249 (1) Finance lease obligation 70 75 Total long-term debt $ 2,876 $ 2,877 (1) Balances as of December 31, 2015 have been recast as a result of the adoption of ASU 2015-03, to present debt issuance costs of $1 3 million as a direct deduction from the carrying amount of the associated debt liability, consistent with the recording of debt discounts. Annual maturities on long-term debt outstanding at September 30, 2016 are as follows: 2016 $ 2 2017 258 2018 908 2019 8 2020 709 Thereafter 1,016 Total maturities 2,901 Unamortized discount, net (14) Debt issuance costs (11) Total long-term debt $ 2,876 Short-term borrowings: Schwab Bank maintains a secured credit facility with the FHLB. At September 30, 2016 , $3.0 billion was outstanding under this facility with an additional $5.9 billion available based on the loans currently pledged there. As a condition of the borrowings, Schwab Bank purchased $152 million of FHLB stock, recorded at par, and sold $88 million of FHLB stock in the first nine months of 2016, with the net investment recorded in other assets on the condensed consolidated balance sheets. Schwab Bank sold $8 million of FHLB stock during the first nine months of 2015. No funds were drawn under this facility as of December 31, 2015. Amounts outstanding under this facility are included in short-term borrowings on the condensed consolidated balance sheets. CSC has authorization from its Board of Directors to issue Commercial Paper Notes not to exceed $1.5 billion. Management has set a current limit for the commercial paper program not to exceed the amount of the committed, unsecured credit facility, which was $750 million at September 30, 2016 . The maturities of the Commercial Paper Notes may vary, but are not to exceed 270 days from the date of issue. The commercial paper is not redeemable prior to maturity and cannot be voluntarily prepaid. The proceeds of the commercial paper program are to be used for general corporate purposes. CSC had no borrowings of Commercial Paper Notes outstanding at September 30, 2016 and December 31, 2015. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 8 . Commitments and Contingencies Guarantees and indemnifications: The Company 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. The Company partially satisfies the margin requirements by arranging unsecured standby LOCs, in favor of the Options Clearing Corporation, which are issued by several banks. At September 30, 2016 , the aggregate face amount of these LOCs totaled $295 million. There were no funds drawn under any of these LOCs at September 30, 2016 . In connection with its securities lending activities, the Company is required to provide collateral to certain brokerage clients. The Company satisfies the collateral requirements by providing cash as collateral. The Company 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. The Company’s liability under these arrangements is not quantifiable and may exceed the cash and securities it has posted as collatera l, but 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: The Company 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. The Company 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 certain matters in which there is a reasonable possibility that a material loss could be incurred or where the matter may otherwise be of significant interest to stockholders. Unless otherwise noted, the Company is unable to provide a reasonable estimate of any potential liability given the stage of proceedings in the matter. With respect to all other pending matters, based on current information and consultation with counsel, it does not appear reasonably possible that the outcome of any such matter would be material to the financial condition, operating results or cash flows of the Company. P redicting 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; potential opportunities for settlement and the status of any settlement discussions; and potential insurance coverage and indemnification. It may not be possible to reasonably estimate potential liability, if any, or 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. Total Bond Market Fund Litigation : On August 28, 2008, a class action lawsuit was filed in the U.S. District Court for the Northern District of California on behalf of investors in the Schwab Total Bond Market Fund™. The lawsuit, which allege d violations of state law and federal securities law in connection with the fund’s investment policy, name d CSIM, Schwab Investments (registrant and issuer of the fund’s shares) and certain current and former fund trustees as defendants. Allegations include that the fund improperly deviated from its stated investment objectives by investing in collateralized mortgage obligations (CMOs) and investing more than 25 % of fund assets in CMOs and mortgage-backed securities without obtaining a shareholder vote. Plaintiff seek s unspecified compensatory and rescission damages, unspecified equitable and injunctive relief, costs and attorneys’ fees. Plaintiff ’s federal securities law claim and certain of plaintiff ’s state law claims were dismissed. On August 8, 2011, the court dismissed plaintiff ’s remaining claims with prejudice. Plaintiff appealed to the Ninth Circuit, which issued a ruling on March 9, 2015 reversing the district court’s dismissal of the case and remanding the case for further proceedings . Plaintiff filed a fourth amended complaint on June 25, 2015 , and in decisions issued October 6, 2015 and February 23, 2016, the court dismissed all claims with prejudice. Plaintiff has appealed to the Ninth Circuit, where the case is again pending. Regulatory Matters : On April 16, 2012, optionsXpress, Inc. was charged by the SEC in an administrative proceeding alleging violations of its close-out obligations under Regulation SHO (short sale delivery rules) in connection with certain customer trading activity. Following trial, in a decision issued June 7, 2013, the judge held that optionsXpress, Inc. had violated Regulation SHO and aided and abetted fraudulent trading activity by its customer, and ordered optionsXpress, Inc. and the customer to pay disgorgement and penalties in an amount that would not be material. The Company appealed to the SEC, and in a decision issued August 18, 2016 and amended September 13, 2016, the SEC dismissed all fraud charges but affirmed the violations of Regulation SHO and the financial sanctions imposed by its administrative law judge . This matter is now concluded . |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Offsetting Assets and Liabilities [Abstract] | |
Offsetting Assets and Liabilities | 9. Offsetting Assets and Liabilities Resale and repurchase 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 102% 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. At September 30, 2016 and December 31, 2015, the fair value of collateral received in connection with resale agreements that are available to be repledged or sold was $ 9.6 billion and $ 8.2 billion, respectively. Schwab utilizes the collateral provided under these resale agreements to meet obligations under broker-dealer client protection rules, which place limitations on its ability to access such segregated securities. For Schwab to repledge or sell this collateral, it would be required to deposit cash and/or securities of an equal amount into its segregated reserve bank accounts in order to meet its segregated cash and investment requirement. The Company’s resale agreements are not subject to master netting arrangements. Securities lending: The Company loans brokerage client securities temporarily to other brokers 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, the Company may be exposed to the risk of acquiring the securities at prevailing market prices in order to satisfy its client obligations. The Company mitigates this risk by requiring credit approvals for counterparties, monitoring the fair value of securities loaned, and requiring additional cash as collateral when necessary. The fair value of client securities pledged in securities lending transactions to other broker-dealers was $ 1.9 billion at September 30, 2016 and December 31, 2015. The Company has also pledged a portion of its securities owned in connection with securities lending transactions to other broker-dealers. Additionally, the Company borrows securities from other broker-dealers to fulfill short sales by brokerage clients and delivers cash to the lender in exchange for the securities. The fair value of these borrowed securities was $ 304 million at September 30, 2016 and $ 72 million at December 31, 2015. All of the Company’s securities lending transactions are subject to enforceable master netting arrangements with other broker-dealers; however, the Company does not net securities lending transactions. Therefore, the Company’s securities loaned and securities borrowed are presented gross in the condensed consolidated balance sheets. The following table presents information about the Company’s resale agreements and securities lending activity to enable the users of the Company’s financial statements to evaluate the potential effect of rights of setoff between these recognized assets and recognized liabilities at September 30, 2016 and December 31, 2015. Gross Amounts Net Amounts Gross Amounts Not Offset in the Offset in the Presented in the Condensed Consolidated Gross Condensed Condensed Balance Sheets Assets/ Consolidated Consolidated Counterparty Net Liabilities Balance Sheets Balance Sheets Offsetting Collateral Amount September 30, 2016 Assets: Resale agreements (1) $ 9,425 $ - $ 9,425 $ - $ (9,425) (2) $ - Securities borrowed (3) 632 - 632 (297) (334) 1 Total $ 10,057 $ - $ 10,057 $ (297) $ (9,759) $ 1 Liabilities: Securities loaned (4,5) $ 2,371 $ - $ 2,371 $ (297) $ (1,961) $ 113 Total $ 2,371 $ - $ 2,371 $ (297) $ (1,961) $ 113 December 31, 2015 Assets: Resale agreements (1) $ 8,088 $ - $ 8,088 $ - $ (8,088) (2) $ - Securities borrowed (3) 198 - 198 (70) (127) 1 Total $ 8,286 $ - $ 8,286 $ (70) $ (8,215) $ 1 Liabilities: Securities loaned (4,5) $ 2,233 $ - $ 2,233 $ (70) $ (1,990) $ 173 Total $ 2,233 $ - $ 2,233 $ (70) $ (1,990) $ 173 (1) Included in cash and investments segregated and on deposit for regulatory purposes in the Company’s condensed consolidated balance sheets. (2) Actual collateral was greater than or equal to 102% of the related assets. (3) Included in receivables from brokers, dealers, and clearing organizations in the Company’s condensed consolidated balance sheets. (4) Included in payables to brokers, dealers, and clearing organizations in the Company’s condensed consolidated balance sheets. (5) Securities loaned are predominantly comprised of equity securities held in client brokerage accounts with overnight and continuous remaining contractual maturities. |
Fair Values of Assets and Liabi
Fair Values of Assets and Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Fair Values of Assets and Liabilities [Abstract] | |
Fair Values of Assets and Liabilities | 10. Fair Values of Assets and Liabilities Assets and liabilities measured at fair value on a recurring basis The Company’s assets and liabilities measured at fair value on a recurring basis include certain cash equivalents, certain investments segregated and on deposit for regulatory purposes, other securities owned, and securities available for sale. The Company uses the market approach to determine the fair value of assets and liabilities. When available, the Company uses quoted prices in active markets to measure the fair value of assets and liabilities. When utilizing market data and bid-ask spread, the Company uses the price within the bid-ask spread that best represents fair value. When quoted prices do not exist, the Company uses prices obtained from independent third-party pricing services to measure the fair value of investment assets. The Company generally obtains prices from at least three independent pricing sources for assets recorded at fair value. The Company’s primary independent pricing service provides prices based on observable trades and discounted cash flows that incorporate observable information such as yields for similar types of securities (a benchmark interest rate plus observable spreads) and weighted-average maturity for the same or similar “to-be-issued” securities. The Company compares the prices obtained from its 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. The Company 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 a material difference in the recorded amounts. Fair value of other financial instruments Descriptions of the valuation methodologies and assumptions used to estimate the fair value of other financial instruments are described below. The Company’s financial instruments not recorded at fair value but for which fair value can be approximated and disclosed include: · Cash and cash equivalents are short-term in nature and accordingly are recorded at amounts that approximate fair value. · Cash and investments segregated and on deposit for regulatory purposes include cash and securities purchased under resale agreements. Securities purchased under resale agreements are short-term in nature and are backed by collateral that both exceeds the carrying value of the resale agreement and is highly liquid in nature. Accordingly, the carrying values of these financial instruments approximate their fair values. · Receivables from/payables to brokers, dealers, and clearing organizations are short-term in nature, recorded at contractual amounts and historically have been settled at those values. Accordingly, the carrying values of these financial instruments approximate their fair values. · Receivables from/payables to brokerage clients — net are short-term in nature, recorded at contractual amounts and historically have been settled at those values. Accordingly, the carrying values of these financial instruments approximate their fair values. · Securities held to maturity – The fair values of securities held to maturity are obtained using an independent third-party pricing service similar to investment assets recorded at fair value as discussed above. · Bank loans – The fair values of the Company’s First Mortgages and HELOCs are estimated based on prices of mortgage-backed securities collateralized by similar types of loans. PALs are non-purpose revolving lines of credit secured by eligible assets; accordingly, the carrying values of these loans approximate their fair values. · Financial instruments included in other assets primarily consist of LIHTC investments, cost method investments and FHLB stock, whose carrying values approximate their fair values. FHLB stock is recorded at par, which approximates its fair value. · Bank deposits have no stated maturity and are recorded at the amount payable on demand as of the balance sheet date. The Company considers the carrying values of these deposits to approximate their fair values. · Financial instruments included in accrued expenses and other liabilities consist of drafts payable and certain amounts due under contractual obligations, including unfunded LIHTC commitments. The carrying values of these instruments approximate their fair values. · Short-term borrowings consist of commercial paper and funds drawn on Schwab Bank’s secured credit facility with the Federal Home Loan Bank of San Francisco. Due to the short-term nature of these borrowings, carrying value approximates fair value. · Long-term debt – Except for the finance lease obligation, the fair values of long-term debt are estimated using indicative, non-binding quotes from independent brokers. The Company validates indicative prices for its debt through comparison to other independent non-binding quotes. The finance lease obligation is recorded at carrying value, which approximates fair value. · Firm commitments to extend credit – The Company extends credit to banking clients through HELOCs and PALs. The Company considers the fair value of these unused commitments to not be material because the interest rates earned on these balances are based on floating interest rates that reset monthly. For a description of the fair value hierarchy, see “Notes – 2. Summary of Significant Accounting Policies” in the 2015 Form 10-K . There were no significant changes in these policies and methodologies during the first nine months of 2016. The Company did not transfer any assets or liabilities between Level 1, Level 2, or Level 3 during the nine months ended September 30, 2016 , or the year ended December 31, 2015. In addition, the Company did not adjust prices received from the primary independent third-party pricing service at September 30, 2016 or December 31, 2015. 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: Quoted Prices in Active Markets Significant Significant for Identical Other Observable Unobservable Assets Inputs Inputs Balance at September 30, 2016 (Level 1) (Level 2) (Level 3) Fair Value Cash equivalents: Money market funds $ 852 $ - $ - $ 852 Commercial paper - 959 - 959 Total cash equivalents 852 959 - 1,811 Investments segregated and on deposit for regulatory purposes: Certificates of deposit - 3,099 - 3,099 U.S. Government securities - 3,512 - 3,512 Total investments segregated and on deposit for regulatory purposes - 6,611 - 6,611 Other securities owned: Schwab Funds ® money market funds 528 - - 528 Equity and bond mutual funds 217 15 - 232 State and municipal debt obligations - 55 - 55 Equity, U.S. Government and corporate debt, and other securities 2 41 - 43 Total other securities owned 747 111 - 858 Securities available for sale: U.S. agency mortgage-backed securities - 33,370 - 33,370 Asset-backed securities - 21,500 - 21,500 Corporate debt securities - 10,119 - 10,119 U.S. Treasury securities - 4,999 - 4,999 U.S. agency notes - 2,205 - 2,205 Certificates of deposit - 2,296 - 2,296 U.S. state and municipal securities - 1,037 - 1,037 Commercial paper - 214 - 214 Non-agency commercial mortgage-backed securities - 51 - 51 Total securities available for sale - 75,791 - 75,791 Total $ 1,599 $ 83,472 $ - $ 85,071 Quoted Prices in Active Markets Significant Significant for Identical Other Observable Unobservable Assets Inputs Inputs Balance at December 31, 2015 (Level 1) (Level 2) (Level 3) Fair Value Cash equivalents: Money market funds $ 1,968 $ - $ - $ 1,968 Commercial paper - 360 - 360 Total cash equivalents 1,968 360 - 2,328 Investments segregated and on deposit for regulatory purposes: Certificates of deposit - 3,430 - 3,430 U.S. Government securities - 4,517 - 4,517 Total investments segregated and on deposit for regulatory purposes - 7,947 - 7,947 Other securities owned: Schwab Funds ® money market funds 261 - - 261 Equity and bond mutual funds 205 - - 205 State and municipal debt obligations - 50 - 50 Equity, U.S. Government and corporate debt, and other securities 1 16 - 17 Total other securities owned 467 66 - 533 Securities available for sale: U.S. agency mortgage-backed securities - 22,149 - 22,149 Asset-backed securities - 21,485 - 21,485 Corporate debt securities - 10,747 - 10,747 U.S. Treasury securities - 5,704 - 5,704 U.S. agency notes - 3,150 - 3,150 Certificates of deposit - 1,683 - 1,683 U.S. state and municipal securities - 424 - 424 Non-agency commercial mortgage-backed securities - 299 - 299 Other securities - 5 - 5 Total securities available for sale - 65,646 - 65,646 Total $ 2,435 $ 74,019 $ - $ 76,454 Fair Value of Other Financial Instruments The following tables present the fair value hierarchy for other financial instruments: Quoted Prices in Active Markets Significant Significant for Identical Other Observable Unobservable Carrying Assets Inputs Inputs Balance at September 30, 2016 Amount (Level 1) (Level 2) (Level 3) Fair Value Assets: Cash and cash equivalents $ 8,620 $ - $ 8,620 $ - $ 8,620 Cash and investments segregated and on deposit for regulatory purposes 13,461 - 13,461 - 13,461 Receivables from brokers, dealers, and clearing organizations 947 - 947 - 947 Receivables from brokerage clients – net 16,377 - 16,377 - 16,377 Securities held to maturity: U.S. agency mortgage-backed securities 64,836 - 66,570 - 66,570 Non-agency commercial mortgage-backed securities 997 - 1,040 - 1,040 U.S. Treasury securities 223 - 233 - 233 Total securities held to maturity 66,056 - 67,843 - 67,843 Bank loans: (1) Residential real estate mortgages 8,687 - 8,797 - 8,797 Home equity loans and lines of credit 2,472 - 2,614 - 2,614 Pledged asset lines 3,646 - 3,646 - 3,646 Other 79 - 79 - 79 Total bank loans 14,884 - 15,136 - 15,136 Other assets 291 - 291 - 291 Total $ 120,636 $ - $ 122,675 $ - $ 122,675 Liabilities: Bank deposits $ 149,630 $ - $ 149,630 $ - $ 149,630 Payables to brokers, dealers, and clearing organizations 3,497 - 3,497 - 3,497 Payables to brokerage clients 32,961 - 32,961 - 32,961 Accrued expenses and other liabilities 880 - 880 - 880 Short-term borrowings 3,001 - 3,001 - 3,001 Long-term debt 2,876 - 3,024 - 3,024 Total $ 192,845 $ - $ 192,993 $ - $ 192,993 (1) The carrying value of bank loans excludes the allowance for loan losses of $26 million at September 30, 2016. Quoted Prices in Active Markets Significant Significant for Identical Other Observable Unobservable Carrying Assets Inputs Inputs Balance at December 31, 2015 Amount (Level 1) (Level 2) (Level 3) Fair Value Assets: Cash and cash equivalents $ 9,650 $ - $ 9,650 $ - $ 9,650 Cash and investments segregated and on deposit for regulatory purposes 11,647 - 11,647 - 11,647 Receivables from brokers, dealers, and clearing organizations 582 - 582 - 582 Receivables from brokerage clients – net 17,310 - 17,310 - 17,310 Securities held to maturity: U.S. agency mortgage-backed securities 48,785 - 48,883 - 48,883 Non-agency commercial mortgage-backed securities 999 - 985 - 985 U.S. Treasury securities 223 - 220 - 220 Total securities held to maturity 50,007 - 50,088 - 50,088 Bank loans: (1) Residential real estate mortgages 8,334 - 8,347 - 8,347 Home equity loans and lines of credit 2,735 - 2,857 - 2,857 Pledged asset lines 3,232 - 3,232 - 3,232 Other 64 - 64 - 64 Total bank loans 14,365 - 14,500 - 14,500 Other assets 184 - 184 - 184 Total $ 103,745 $ - $ 103,961 $ - $ 103,961 Liabilities: Bank deposits $ 129,502 $ - $ 129,502 $ - $ 129,502 Payables to brokers, dealers, and clearing organizations 2,588 - 2,588 - 2,588 Payables to brokerage clients 33,185 - 33,185 - 33,185 Accrued expenses and other liabilities 1,115 - 1,115 - 1,115 Long-term debt (2) 2,877 - 2,967 - 2,967 Total $ 169,267 $ - $ 169,357 $ - $ 169,357 (1) The carrying value of bank loans excludes the allowance for loan losses of $31 million at December 31, 2015. (2) The amounts as of December 31, 2015 have been recast as a result of the adoption of ASU 2015-03, to present debt issuance costs of $ 13 million as a direct deduction from the carrying amount of the associated debt liability, consistent with the recording of debt discounts. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | 11. Stockholders’ Equity There have been no significant changes to the Company’s stockholders’ equity with the exception of the issuance disclosed below. The Company did not issue any shares of common stock during the nine months ended September 30, 2016 , or the year ended December 31, 2015. On March 7, 2016, the Company issued and sold 30 million depositary shares, each representing a 1/40 th ownership interest in a share of 5.95% non-cumulative perpetual preferred stock, Series D, $0.01 par value, with a liquidation preference of $1,000 per share (equivalent to $25 per depositary share). The Series D Preferred Stock has a fixed dividend rate of 5.95 % . Including the Series D issuance discussed above, the Company’s preferred stock issued and outstanding is as follows: September 30, 2016 December 31, 2015 Shares Shares Issued and Liquidation Issued and Liquidation Outstanding Preference Liquidation Carrying Outstanding Preference Liquidation Carrying (In thousands) Per Share Preference Value (In thousands) Per Share Preference Value Series A 400 $ 1,000 $ 400 $ 397 400 $ 1,000 $ 400 $ 396 Series B 485 1,000 485 483 485 1,000 485 480 Series C 600 1,000 600 585 600 1,000 600 583 Series D 750 1,000 750 727 - - - - Total Preferred Stock 2,235 $ 2,235 $ 2,192 1,485 $ 1,485 $ 1,459 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | 12. Accumulated Other Comprehensive Income Accumulated other comprehensive income represents cumulative gains and losses that are not reflected in earnings. The components of other comprehensive income are as follows: Three Months Ended September 30, 2016 2015 Before Tax Net of Before Tax Net of Tax Effect Tax Tax Effect Tax Change in net unrealized gain on securities available for sale: Net unrealized gain (loss) $ 77 $ (29) $ 48 $ (249) $ 94 $ (155) Other reclassifications included in other revenue - - - - - - Change in net unrealized gain (loss) on securities available for sale 77 (29) 48 (249) 94 (155) Other comprehensive income (loss) $ 77 $ (29) $ 48 $ (249) $ 94 $ (155) Nine Months Ended September 30, 2016 2015 Before Tax Net of Before Tax Net of Tax Effect Tax Tax Effect Tax Change in net unrealized gain on securities available for sale: Net unrealized gain (loss) $ 266 $ (100) $ 166 $ (233) $ 87 $ (146) Other reclassifications included in other revenue (3) 1 (2) - - - Change in net unrealized gain (loss) on securities available for sale 263 (99) 164 (233) 87 (146) Other 1 - 1 - - - Other comprehensive income (loss) $ 264 $ (99) $ 165 $ (233) $ 87 $ (146) Accumulated other comprehensive income balances are as follows: Total Accumulated Other Comprehensive Income Balance at December 31, 2014 $ 165 Net unrealized loss on securities available for sale (146) Balance at September 30, 2015 $ 19 Balance at December 31, 2015 $ (134) Net unrealized gain on securities available for sale 164 Other 1 Balance at September 30, 2016 $ 31 |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Common Share [Abstract] | |
Earnings Per Common Share | 13. Earnings Per Common Share EPS is computed using the two-class method. Preferred stock dividends, and undistributed earnings and dividends allocated to participating securities are subtracted from net income in determining net income available to common stockholders. Basic EPS is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the period. The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if dilutive potential common shares had been issued. Dilutive potential common shares include, if dilutive, the effect of outstanding stock options and non-vested restricted stock awards and units. EPS under the basic and diluted computations is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Net income $ 503 $ 376 $ 1,367 $ 1,031 Preferred stock dividends and other (1) (33) (11) (99) (45) Net income available to common stockholders $ 470 $ 365 $ 1,268 $ 986 Weighted-average common shares outstanding — basic 1,324 1,316 1,322 1,315 Common stock equivalent shares related to stock incentive plans 10 12 10 11 Weighted-average common shares outstanding — diluted (2) 1,334 1,328 1,332 1,326 Basic EPS $ .36 $ .28 $ .96 $ .75 Diluted EPS $ .35 $ .28 $ .95 $ .74 (1) Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested restricted stock units. (2) Antidilutive stock options and restricted stock awards excluded from the calculation of diluted EPS totaled 17 million and 1 4 million shares for the third quarters of 2016 and 2015, respectively, and 21 million and 16 million shares for the first nine months of 2016 and 2015, respectively. |
Regulatory Requirements
Regulatory Requirements | 9 Months Ended |
Sep. 30, 2016 | |
Regulatory Requirements [Abstract] | |
Regulatory Requirements | 14 . Regulatory Requirements CSC is a savings and loan holding company and Schwab Bank, CSC’s depository institution subsidiary, is a federal savings bank. CSC is subject to examination, supervision, and regulation by the Federal Reserve. Schwab Bank is subject to examination, supervision, and regulation by the OCC, as its primary regulator, the FDIC, as its deposit insurer, and the CFPB. CSC is required to serve as a source of strength for Schwab Bank. Schwab Bank is subject to various requirements and restrictions under federal and state laws, including regulatory capital requirements and requirements that restrict and govern the terms of affiliate transactions, such as extensions of credit to, or asset purchases from CSC or its other subsidiaries by Schwab Bank. In addition, Schwab Bank is required to provide notice to and may be required to obtain approval of the OCC and the Federal Reserve to declare dividends to CSC. The federal banking agencies have broad powers to enforce these regulations, including the power to terminate deposit insurance, impose substantial fines and other civil and criminal penalties, and appoint a conservator or receiver. Under the Federal Deposit Insurance Act, Schwab Bank could be subject to restrictive actions if it were to fall within one of the lowest three of five capital categories. CSC and Schwab Bank are required to maintain minimum capital levels as specified in federal banking regulations. Failure to meet the minimum levels could result in certain mandatory, and possibly additional discretionary actions by the regulators that, if undertaken, could have a direct material effect on CSC and Schwab Bank. At September 30, 2016 , both CSC and Schwab Bank met all of their respective capital requirements. Certain events, such as growth in bank deposits and regulatory discretion, could adversely affect CSC’s or Schwab Bank’s ability to meet future capital requirements. The regulatory capital and ratios for CSC and Schwab Bank are as follows: Minimum to be Minimum Capital Actual Well Capitalized Requirement September 30, 2016 Amount Ratio Amount Ratio Amount Ratio CSC Common Equity Tier 1 Risk-Based Capital $ 12,015 18.0 % N/A $ 3,006 4.5 % Tier 1 Risk-Based Capital 14,207 21.3 % N/A 4,008 6.0 % Total Risk-Based Capital 14,234 21.3 % N/A 5,343 8.0 % Tier 1 Leverage 14,207 7.1 % N/A 7,996 4.0 % Schwab Bank Common Equity Tier 1 Risk-Based Capital $ 11,142 18.8 % $ 3,843 6.5 % $ 2,660 4.5 % Tier 1 Risk-Based Capital 11,142 18.8 % 4,730 8.0 % 3,547 6.0 % Total Risk-Based Capital 11,168 18.9 % 5,912 10.0 % 4,730 8.0 % Tier 1 Leverage 11,142 7.0 % 7,910 5.0 % 6,328 4.0 % December 31, 2015 CSC Common Equity Tier 1 Risk-Based Capital $ 10,851 18.2 % N/A $ 2,681 4.5 % Tier 1 Risk-Based Capital 12,310 20.7 % N/A 3,575 6.0 % Total Risk-Based Capital 12,342 20.7 % N/A 4,766 8.0 % Tier 1 Leverage 12,310 7.1 % N/A 6,912 4.0 % Schwab Bank Common Equity Tier 1 Risk-Based Capital $ 9,314 18.1 % $ 3,349 6.5 % $ 2,318 4.5 % Tier 1 Risk-Based Capital 9,314 18.1 % 4,121 8.0 % 3,091 6.0 % Total Risk-Based Capital 9,345 18.1 % 5,152 10.0 % 4,121 8.0 % Tier 1 Leverage 9,314 7.1 % 6,594 5.0 % 5,275 4.0 % N/A Not applicable. Based on its regulatory capital ratios at September 30, 2016 , Schwab Bank is considered well capitalized (the highest category) under their respective regulatory capital rules. There are no conditions or events since September 30, 2016 that management believes have changed Schwab Bank’s capital category. Beginning on January 1, 2016, CSC and Schwab Bank became subject to a new capital conservation buffer requirement of .625% of risk-weighted assets, increasing each year by .625% until fully implemented at 2.5% of risk-weighted assets in January 2019. The capital conservation buffer is in addition to the minimum risk-based capital requirements described above. Failure to maintain the capital conservation buffer would limit an entity’s ability to make capital distributions and discretionary bonus payments to executive officers. At September 30, 2016 , both CSC’s and Schwab Bank’s capital levels exceeded the fully implemented capital conservation buffer requirement. CSC’s principal broker-dealers are Schwab and optionsXpress, Inc. Schwab and optionsXpress, Inc. are both subject to Rule 15c3-1 under the Securities Exchange Act of 1934 (the Uniform Net Capital Rule). Schwab and optionsXpress, Inc. compute net capital under the alternative method permitted by the Uniform Net Capital Rule. This method requires the maintenance of minimum net capital, as defined, of the greater of 2% of aggregate debit balances arising from client transactions or a minimum dollar requirement ($ 250,000 ), which is based on the type of business conducted by the broker-dealer. Under the alternative method, a broker-dealer may not repay subordinated borrowings, pay cash dividends, or make any unsecured advances or loans to its parent company or employees if such payment would result in a net capital amount of less than 5 % of aggregate debit balances or less than 120 % of its minimum dollar requirement. optionsXpress, Inc. is also subject to Commodity Futures Trading Commission Regulation 1.17 (Reg. 1.17) under the Commodity Exchange Act, which also requires the maintenance of minimum net capital. optionsXpress, Inc., as a futures commission merchant, is required to maintain minimum net capital equal to the greater of its net capital requirement under Reg. 1.17 ($ 1 million), or the sum of 8% of the total risk margin requirements for all positions carried in client accounts and 8 % of the total risk margin requirements for all positions carried in non-client accounts (as defined in Reg. 1.17). Net capital and net capital requirements for Schwab and optionsXpress, Inc. are as follows: Net Capital Minimum 2% of in Excess of Net Capital Aggregate Required September 30, 2016 Net Capital Required Debit Balances Net Capital Schwab $ 1,890 $ 0.250 $ 344 $ 1,546 optionsXpress, Inc. 269 1 7 262 December 31, 2015 Schwab $ 1,746 $ 0.250 $ 358 $ 1,388 optionsXpress, Inc. 244 1 7 237 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2016 | |
Segment Information [Abstract] | |
Segment Information | 15. Segment Information The Company’s two reportable segments are Investor Services and Advisor Services. The Company structures its operating segments according to its clients and the services provided to those clients. The Investor Services segment provides retail brokerage and banking services, retirement plan services, and other corporate brokerage services. The Advisor Services segment provides custodial, trading, and support services as well as retirement business services. Revenues and expenses are attributed to the Company’s two segments based on which segment services the client. The Company evaluates the performance of its 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 Company’s reportable segments is presented in the following table s : Investor Services (1) Advisor Services (1) Total Three Months Ended September 30, 2016 2015 2016 2015 2016 2015 Net Revenues: Asset management and administration fees $ 550 $ 461 $ 248 $ 202 $ 798 $ 663 Net interest revenue 654 534 191 101 845 635 Trading revenue 123 148 67 80 190 228 Other 56 45 20 21 76 66 Provision for loan losses 4 4 1 1 5 5 Total net revenues 1,387 1,192 527 405 1,914 1,597 Expenses Excluding Interest 847 762 273 252 1,120 1,014 Income before taxes on income $ 540 $ 430 $ 254 $ 153 $ 794 $ 583 Investor Services (1) Advisor Services (1) Total Nine Months Ended September 30, 2016 2015 2016 2015 2016 2015 Net Revenues: Asset management and administration fees $ 1,536 $ 1,372 $ 718 $ 605 $ 2,254 $ 1,977 Net interest revenue 1,895 1,568 520 267 2,415 1,835 Trading revenue 395 428 228 230 623 658 Other 153 146 56 62 209 208 Provision for loan losses 4 10 1 1 5 11 Total net revenues 3,983 3,524 1,523 1,165 5,506 4,689 Expenses Excluding Interest 2,518 2,308 819 747 3,337 3,055 Income before taxes on income $ 1,465 $ 1,216 $ 704 $ 418 $ 2,169 $ 1,634 (1) The Corporate Brokerage Retirement Services business was transferred from the Investor Services segment to the Advisor Services segment in the fourth quarter of 2015. Prior period information has been recast to reflect these changes. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Event [Abstract] | |
Subsequent Event | 16. Subsequent Event On October 31, 2016, the Company issued and sold 600,000 depositary shares, each representing a 1/100 th ownership interest in a share of fixed-to-floating rate non-cumulative perpetual preferred stock, Series E, $0.01 par value, with a liquidation preference of $100,000 per share (equivalent to $1,000 per depositary share). The Series E Preferred Stock has a fixed dividend rate of 4.625% through February 28, 2022, payable semi-annually, and thereafter at a floating rate of three-month LIBOR plus a fixed spread of 3.315% , payable quarterly. Net proceeds received from the sale were $591 million and are being used to support balance sheet growth, including the migration of certain client balances from sweep money market funds into Schwab Bank. |
New Accounting Standards (Polic
New Accounting Standards (Policy) | 9 Months Ended |
Sep. 30, 2016 | |
New Accounting Standards [Abstract] | |
Adoption of New Accounting Standards | Adoption of New Accounting Standards On January 1, 2016, the Company adopted ASU 2015-02, “Consolidation (Topic 810),” which amends the analysis a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The new guidance is applicable to all entities but provides an exception for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds . The adoption of ASU 2015-02 did not have an impact on the Company’s consolidated financial statements or EPS as the new guidance did not change any existing consolidation conclusions reached in accordance with the previous guidance. On January 1, 2016, the Company adopted ASU 2015-03, “Interest – Imputation of Interest (Subtopic 835-30).” ASU 2015-03 requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. Previously, debt issuance costs were presented as a separate asset on the balance sheet. The guidance in ASU 2015-03 has been applied on a retrospective basis which requires the adjustment of all prior period consolidated balance sheets. The effect of the adoption on the Company’s December 31, 2015 consolidated balance sheet was to decrease other assets and total assets by $13 million and to decrease long-term debt and total liabilities by $13 million. A similar amount was also reclassified in the prior year. The Company considers the reclassifications immaterial. On January 1, 2016, the Company also adopted ASU 2015-05, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40),” which provides new guidance that clarifies customer’s accounting for fees paid in a cloud computing arrangement. Under the new guidance, if a cloud computing arrangement includes a software license, the customer shall account for the software license element of the arrangement consistent with the acquisition of other software licenses. If the cloud computing arrangement does not include a software license, the customer shall account for the arrangement as a service contract. The guidance applies to all new arrangements entered into after January 1, 2016. The adoption of ASU 2015-05 did not have an impact on the Company’s financial statements or EPS. |
New Accounting Standards Not Yet Adopted | New Accounting Standards Not Yet Adopted In May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which provides new guidance on revenue recognition. The guidance clarifies that revenue from contracts with customers should be recognized in a manner that depicts the timing of the related transfer of goods or performance of services at an amount that reflects the expected consideration. The new guidance will become effective January 1, 2018, with early adoption permitted as of January 1, 2017. Entities may elect either full or modified retrospective transition. Full retrospective transition will require a cumulative effect adjustment to retained earnings as of the earliest comparative period presented. Modified retrospective transition will require a cumulative effect adjustment to retained earnings as of the beginning of the reporting period in which the entity first applies the new guidance. The Company is currently evaluating the impact of this new guidance on its financial statements and EPS. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10),” which will become effective January 1, 2018. This new guidance addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The main provisions of the guidance include (i) most equity investments are to be measured at fair value with changes in fair value recognized in net income, except for those accounted for under the equity method or those that do not have readily determinable fair values for which a practical expedient can be elected, (ii) requires the use of an exit price notion when measuring the fair value of financial instruments for disclosure purposes, and (iii) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial instrument on the balance sheet or in the accompanying notes. The Company is currently evaluating the impact of this new guidance on its financial statements and EPS. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” which amends the accounting for leases by lessees and lessors. The primary change as a result of the new standard is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases. Additional changes include accounting for lease origination and executory costs, required lessee reassessments during the lease term due to changes in circumstances and expanded lease disclosures. ASU 2016-02 will become effective January 1, 2019, with early adoption permitted, and requires entities to apply the new guidance using a modified retrospective transition. Modified retrospective transition requires entities to apply the new guidance as of the beginning of the earliest comparative period presented in the financial statements in which the entity first applies the new standard. Certain transition reliefs are permitted if elected by the entity. The Company is currently evaluating the impact of this new guidance on its financial statements and EPS. In March 2016, the FASB issued ASU 2016-09, “Stock Compensation – Improvements to Employee Share-Based Payment Accounting (Topic 718)” which amends certain aspects of how an entity accounts for share-based payments to employees. The new guidance requires entities to recognize the income tax effects of share-based awards in the income statement when the awards vest or are settled, rather than recording such effects in additional paid-in capital. Entities will also be permitted to elect to account for forfeitures of share-based payments as they occur or continue with current practice which requires estimating the number of awards expected to be forfeited and adjusting the estimate when it is likely to change. ASU 2016-09 will become effective January 1, 2017, with early adoption permitted. The change in recognition of income tax effects of share-based awards will be applied prospectively. If an entity elects to account for forfeitures of share-based payments as they occur, such change will be applied using a modified retrospective transition method, with a cumulative-effect adjustment to retained earnings. The Company is currently evaluating the impact of this new guidance on its financial statements and EPS . In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” which provides new guidance for recognizing impairment of most debt instruments measured at amortized cost, including loans and held to maturity debt securities. The new guidance will require estimating expected credit losses (ECL) 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 ECL 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. The new guidance also amends the OTTI model for available for sale 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. ASU 2016-13 will become effective January 1, 2020, with early adoption permitted as of January 1, 2019. The new guidance will be applied 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 available for sale debt securities for which an OTTI had been recognized before the effective date. The Company is currently evaluating the impact of this new guidance on its financial statements and EPS. |
Securities Available for Sale25
Securities Available for Sale and Securities Held to Maturity (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Securities Available for Sale and Securities Held to Maturity [Abstract] | |
Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Securities Available for Sale and Securities Held to Maturity | Gross Gross Amortized Unrealized Unrealized Fair September 30, 2016 Cost Gains Losses Value Securities available for sale: U.S. agency mortgage-backed securities $ 33,195 $ 219 $ 44 $ 33,370 Asset-backed securities 21,736 30 266 21,500 Corporate debt securities 10,067 54 2 10,119 U.S. Treasury securities 4,966 33 - 4,999 U.S. agency notes 2,206 - 1 2,205 Certificates of deposit 2,295 2 1 2,296 U.S. state and municipal securities 1,012 26 1 1,037 Commercial paper 214 - - 214 Non-agency commercial mortgage-backed securities 51 - - 51 Total securities available for sale $ 75,742 $ 364 $ 315 $ 75,791 Securities held to maturity: U.S. agency mortgage-backed securities $ 64,836 $ 1,738 $ 4 $ 66,570 Non-agency commercial mortgage-backed securities 997 43 - 1,040 U.S. Treasury securities 223 10 - 233 Total securities held to maturity $ 66,056 $ 1,791 $ 4 $ 67,843 December 31, 2015 Securities available for sale: U.S. agency mortgage-backed securities $ 22,014 $ 183 $ 48 $ 22,149 Asset-backed securities 21,784 7 306 21,485 Corporate debt securities 10,764 14 31 10,747 U.S. Treasury securities 5,719 2 17 5,704 U.S. agency notes 3,177 - 27 3,150 Certificates of deposit 1,685 1 3 1,683 U.S. state and municipal securities 414 10 - 424 Non-agency commercial mortgage-backed securities 298 1 - 299 Other securities 5 - - 5 Total securities available for sale $ 65,860 $ 218 $ 432 $ 65,646 Securities held to maturity: U.S. agency mortgage-backed securities $ 48,785 $ 391 $ 293 $ 48,883 Non-agency commercial mortgage-backed securities 999 6 20 985 U.S. Treasury securities 223 - 3 220 Total securities held to maturity $ 50,007 $ 397 $ 316 $ 50,088 |
Securities with Unrealized Losses, Aggregated by Category and Period of Continuous Unrealized Loss | Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2016 Value Losses Value Losses Value Losses Securities available for sale: U.S. agency mortgage-backed securities $ 10,233 $ 21 $ 2,672 $ 23 $ 12,905 $ 44 Asset-backed securities 1,235 14 10,504 252 11,739 266 Corporate debt securities 758 1 882 1 1,640 2 U.S. agency notes 499 1 - - 499 1 Certificates of deposit 544 1 200 - 744 1 U.S. state and municipal securities 124 1 - - 124 1 Total $ 13,393 $ 39 $ 14,258 $ 276 $ 27,651 $ 315 Securities held to maturity: U.S. agency mortgage-backed securities $ 2,475 $ 4 $ - $ - $ 2,475 $ 4 Total $ 2,475 $ 4 $ - $ - $ 2,475 $ 4 Total securities with unrealized losses (1) $ 15,868 $ 43 $ 14,258 $ 276 $ 30,126 $ 319 December 31, 2015 Securities available for sale: U.S. agency mortgage-backed securities $ 8,541 $ 47 $ 813 $ 1 $ 9,354 $ 48 Asset-backed securities 17,127 240 2,743 66 19,870 306 Corporate debt securities 5,433 25 942 6 6,375 31 U.S. Treasury securities 5,010 17 - - 5,010 17 U.S. agency notes 1,281 10 1,547 17 2,828 27 Certificates of deposit 773 2 599 1 1,372 3 Total $ 38,165 $ 341 $ 6,644 $ 91 $ 44,809 $ 432 Securities held to maturity: U.S. agency mortgage-backed securities $ 24,219 $ 253 $ 1,842 $ 40 $ 26,061 $ 293 Non-agency commercial mortgage-backed securities 729 20 - - 729 20 U.S. Treasury securities 220 3 - - 220 3 Total $ 25,168 $ 276 $ 1,842 $ 40 $ 27,010 $ 316 Total securities with unrealized losses (2) $ 63,333 $ 617 $ 8,486 $ 131 $ 71,819 $ 748 (1) The number of investment positions with unrealized losses totaled 339 for securities available for sale and 24 for securities held to maturity. (2) The number of investment positions with unrealized losses totaled 409 for securities available for sale and 286 for securities held to maturity. |
Maturities of Securities Available for Sale and Securities Held to Maturity | After 1 year After 5 years Within through through After September 30, 2016 1 year 5 years 10 years 10 years Total Securities available for sale: U.S. agency mortgage-backed securities (1) $ - $ 3,417 $ 16,966 $ 12,987 $ 33,370 Asset-backed securities - 9,125 4,150 8,225 21,500 Corporate debt securities 2,233 7,886 - - 10,119 U.S. Treasury securities 200 4,592 207 - 4,999 U.S. agency notes - 2,205 - - 2,205 Certificates of deposit 876 1,420 - - 2,296 U.S. state and municipal securities - - 51 986 1,037 Commercial paper 214 - - - 214 Non-agency commercial mortgage-backed securities - - - 51 51 Total fair value $ 3,523 $ 28,645 $ 21,374 $ 22,249 $ 75,791 Total amortized cost $ 3,517 $ 28,473 $ 21,386 $ 22,366 $ 75,742 Securities held to maturity: U.S. agency mortgage-backed securities (1) $ - $ 4,201 $ 22,947 $ 39,422 $ 66,570 Non-agency commercial mortgage-backed securities (1) - - 376 664 1,040 U.S. Treasury securities - - 233 - 233 Total fair value $ - $ 4,201 $ 23,556 $ 40,086 $ 67,843 Total amortized cost $ - $ 4,019 $ 22,605 $ 39,432 $ 66,056 (1) Mortgage-backed securities have been allocated to maturity groupings based on final contractual maturities. Actual maturities will differ from final contractual maturities because borrowers on a certain portion of loans underlying these securities have the right to prepay their obligations. |
Proceeds and Gross Realized Gains And Losses from Sales of Securities Available for Sale | Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Proceeds $ 571 $ 5 $ 4,645 $ 599 Gross realized gains - - 3 1 Gross realized losses - - - 1 |
Bank Loans and Related Allowa26
Bank Loans and Related Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Bank Loans and Related Allowance for Loan Losses [Abstract] | |
Composition of Bank Loans and Delinquency Analysis by Loan Segment | >90 days past Total past due Allowance Total 30-59 days 60-89 days due and other and other Total for loan bank September 30, 2016 Current past due past due nonaccrual loans nonaccrual loans loans losses loans - net Residential real estate mortgages $ 8,660 $ 8 $ 4 $ 15 $ 27 $ 8,687 $ 15 $ 8,672 Home equity loans and lines of credit 2,456 4 1 11 16 2,472 10 2,462 Pledged asset lines 3,644 - - 2 2 3,646 - 3,646 Other 79 - - - - 79 1 78 Total bank loans $ 14,839 $ 12 $ 5 $ 28 $ 45 $ 14,884 $ 26 $ 14,858 December 31, 2015 Residential real estate mortgages $ 8,304 $ 11 $ 1 $ 18 $ 30 $ 8,334 $ 20 $ 8,314 Home equity loans and lines of credit 2,720 4 1 10 15 2,735 11 2,724 Pledged asset lines 3,228 3 1 - 4 3,232 - 3,232 Other 64 - - - - 64 - 64 Total bank loans $ 14,316 $ 18 $ 3 $ 28 $ 49 $ 14,365 $ 31 $ 14,334 |
Changes in Allowance for Loan Losses | Three Months Ended September 30, 2016 September 30, 2015 Residential Home equity Residential Home equity real estate loans and real estate loans and mortgages lines of credit Other Total mortgages lines of credit Total Balance at beginning of period $ 20 $ 10 $ 1 $ 31 $ 23 $ 13 $ 36 Charge-offs - - - - - - - Recoveries - - - - 1 - 1 Provision for loan losses (5) - - (5) (4) (2) (6) Balance at end of period $ 15 $ 10 $ 1 $ 26 $ 20 $ 11 $ 31 Nine Months Ended September 30, 2016 September 30, 2015 Residential Home equity Residential Home equity real estate loans and real estate loans and mortgages lines of credit Other Total mortgages lines of credit Total Balance at beginning of period $ 20 $ 11 $ - $ 31 $ 29 $ 13 $ 42 Charge-offs (1) - - (1) - (2) (2) Recoveries 1 - - 1 1 2 3 Provision for loan losses (5) (1) 1 (5) (10) (2) (12) Balance at end of period $ 15 $ 10 $ 1 $ 26 $ 20 $ 11 $ 31 |
Credit Quality Indicators of Bank Loan Portfolio | Weighted Percent of Average Utilization Loans on September 30, 2016 Balance Updated FICO Rate (1) Nonaccrual Status Residential real estate mortgages: Estimated Current LTV < 70% $ 7,994 775 N/A 0.02 % >70% – < 90% 645 766 N/A 0.18 % >90% – < 100% 22 732 N/A 3.48 % >100% 26 719 N/A 13.54 % Total $ 8,687 774 N/A 0.08 % Home equity loans and lines of credit: Estimated Current LTV < 70% $ 2,146 772 36 % 0.15 % >70% – < 90% 270 758 49 % 0.55 % >90% – < 100% 33 750 60 % 1.66 % >100% 23 737 65 % 3.05 % Total $ 2,472 770 37 % 0.24 % Pledged asset lines: Weighted-Average LTV =70% $ 3,646 763 47 % - (1) The Utilization Rate is calculated using the outstanding balance divided by the associated total line of credit. N/A Not applicable. Residential Home equity real estate loans and September 30, 2016 mortgages lines of credit Year of origination Pre-2012 $ 1,100 $ 1,766 2012 1,263 111 2013 1,950 206 2014 766 166 2015 1,599 155 2016 2,009 68 Total $ 8,687 $ 2,472 Origination FICO <620 $ 8 $ - 620 – 679 91 14 680 – 739 1,378 451 > 740 7,210 2,007 Total $ 8,687 $ 2,472 Origination LTV < 70% $ 6,410 $ 1,701 >70% – < 90% 2,267 757 >90% – < 100% 10 14 Total $ 8,687 $ 2,472 Weighted Percent of Average Utilization Loans on December 31, 2015 Balance Updated FICO Rate (1) Nonaccrual Status Residential real estate mortgages: Estimated Current LTV < 70% $ 7,508 774 N/A 0.03 % >70% – < 90% 759 764 N/A 0.31 % >90% – < 100% 37 736 N/A 5.54 % >100% 30 713 N/A 7.72 % Total $ 8,334 773 N/A 0.11 % Home equity loans and lines of credit: Estimated Current LTV < 70% $ 2,277 772 37 % 0.09 % >70% – < 90% 373 760 50 % 0.48 % >90% – < 100% 48 748 63 % 1.02 % >100% 37 739 67 % 1.79 % Total $ 2,735 770 39 % 0.18 % Pledged asset lines: Weighted-Average LTV =70% $ 3,232 764 49 % - (1) The Utilization Rate is calculated using the outstanding balance divided by the associated total line of credit. N/A Not applicable. Residential Home equity real estate loans and December 31, 2015 mortgages lines of credit Year of origination Pre-2012 $ 1,306 $ 2,048 2012 1,644 125 2013 2,450 232 2014 1,021 188 2015 1,913 142 Total $ 8,334 $ 2,735 Origination FICO <620 $ 10 $ - 620 – 679 88 16 680 – 739 1,381 498 > 740 6,855 2,221 Total $ 8,334 $ 2,735 Origination LTV < 70% $ 5,913 $ 1,858 >70% – < 90% 2,408 860 >90% – < 100% 13 17 Total $ 8,334 $ 2,735 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Variable Interest Entities [Abstract] | |
Aggregate Assets, Liabilities and Maximum Exposure to Loss | September 30, 2016 December 31, 2015 Maximum Maximum Aggregate Aggregate exposure Aggregate Aggregate exposure assets liabilities to loss assets liabilities to loss LIHTC investments $ 153 $ 110 $ 153 $ 104 $ 84 $ 104 Other CRA investments (1) 55 - 65 57 - 66 Total $ 208 $ 110 $ 218 $ 161 $ 84 $ 170 (1) Other CRA investments are recorded using either the cost method or the equity method. Aggregate assets are included in either other assets or bank loans – net on the condensed consolidated balance sheets. |
Bank Deposits (Tables)
Bank Deposits (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Bank Deposits [Abstract] | |
Deposits from Banking Clients Consisting of Interest Bearing and Noninterest Bearing Deposits | September 30, December 31, 2016 2015 Interest-bearing deposits: Deposits swept from brokerage accounts $ 127,866 $ 108,137 Checking 13,543 12,822 Savings and other 7,643 7,896 Total interest-bearing deposits 149,052 128,855 Non-interest-bearing deposits 578 647 Total bank deposits $ 149,630 $ 129,502 |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Borrowings [Abstract] | |
Long-term Debt Including Unamortized Debt Discounts and Premiums | September 30, December 31, 2016 2015 Senior Notes $ 2,556 $ 2,553 (1) Senior Medium-Term Notes 250 249 (1) Finance lease obligation 70 75 Total long-term debt $ 2,876 $ 2,877 (1) Balances as of December 31, 2015 have been recast as a result of the adoption of ASU 2015-03, to present debt issuance costs of $1 3 million as a direct deduction from the carrying amount of the associated debt liability, consistent with the recording of debt discounts. |
Annual Maturities on Long-term Debt Outstanding | 2016 $ 2 2017 258 2018 908 2019 8 2020 709 Thereafter 1,016 Total maturities 2,901 Unamortized discount, net (14) Debt issuance costs (11) Total long-term debt $ 2,876 |
Offsetting Assets and Liabili30
Offsetting Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Offsetting Assets and Liabilities [Abstract] | |
Offsetting Assets and Liabilities | Gross Amounts Net Amounts Gross Amounts Not Offset in the Offset in the Presented in the Condensed Consolidated Gross Condensed Condensed Balance Sheets Assets/ Consolidated Consolidated Counterparty Net Liabilities Balance Sheets Balance Sheets Offsetting Collateral Amount September 30, 2016 Assets: Resale agreements (1) $ 9,425 $ - $ 9,425 $ - $ (9,425) (2) $ - Securities borrowed (3) 632 - 632 (297) (334) 1 Total $ 10,057 $ - $ 10,057 $ (297) $ (9,759) $ 1 Liabilities: Securities loaned (4,5) $ 2,371 $ - $ 2,371 $ (297) $ (1,961) $ 113 Total $ 2,371 $ - $ 2,371 $ (297) $ (1,961) $ 113 December 31, 2015 Assets: Resale agreements (1) $ 8,088 $ - $ 8,088 $ - $ (8,088) (2) $ - Securities borrowed (3) 198 - 198 (70) (127) 1 Total $ 8,286 $ - $ 8,286 $ (70) $ (8,215) $ 1 Liabilities: Securities loaned (4,5) $ 2,233 $ - $ 2,233 $ (70) $ (1,990) $ 173 Total $ 2,233 $ - $ 2,233 $ (70) $ (1,990) $ 173 (1) Included in cash and investments segregated and on deposit for regulatory purposes in the Company’s condensed consolidated balance sheets. (2) Actual collateral was greater than or equal to 102% of the related assets. (3) Included in receivables from brokers, dealers, and clearing organizations in the Company’s condensed consolidated balance sheets. (4) Included in payables to brokers, dealers, and clearing organizations in the Company’s condensed consolidated balance sheets. (5) Securities loaned are predominantly comprised of equity securities held in client brokerage accounts with overnight and continuous remaining contractual maturities. |
Fair Values of Assets and Lia31
Fair Values of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Values of Assets and Liabilities [Abstract] | |
Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value on a Recurring Basis | Quoted Prices in Active Markets Significant Significant for Identical Other Observable Unobservable Assets Inputs Inputs Balance at September 30, 2016 (Level 1) (Level 2) (Level 3) Fair Value Cash equivalents: Money market funds $ 852 $ - $ - $ 852 Commercial paper - 959 - 959 Total cash equivalents 852 959 - 1,811 Investments segregated and on deposit for regulatory purposes: Certificates of deposit - 3,099 - 3,099 U.S. Government securities - 3,512 - 3,512 Total investments segregated and on deposit for regulatory purposes - 6,611 - 6,611 Other securities owned: Schwab Funds ® money market funds 528 - - 528 Equity and bond mutual funds 217 15 - 232 State and municipal debt obligations - 55 - 55 Equity, U.S. Government and corporate debt, and other securities 2 41 - 43 Total other securities owned 747 111 - 858 Securities available for sale: U.S. agency mortgage-backed securities - 33,370 - 33,370 Asset-backed securities - 21,500 - 21,500 Corporate debt securities - 10,119 - 10,119 U.S. Treasury securities - 4,999 - 4,999 U.S. agency notes - 2,205 - 2,205 Certificates of deposit - 2,296 - 2,296 U.S. state and municipal securities - 1,037 - 1,037 Commercial paper - 214 - 214 Non-agency commercial mortgage-backed securities - 51 - 51 Total securities available for sale - 75,791 - 75,791 Total $ 1,599 $ 83,472 $ - $ 85,071 Quoted Prices in Active Markets Significant Significant for Identical Other Observable Unobservable Assets Inputs Inputs Balance at December 31, 2015 (Level 1) (Level 2) (Level 3) Fair Value Cash equivalents: Money market funds $ 1,968 $ - $ - $ 1,968 Commercial paper - 360 - 360 Total cash equivalents 1,968 360 - 2,328 Investments segregated and on deposit for regulatory purposes: Certificates of deposit - 3,430 - 3,430 U.S. Government securities - 4,517 - 4,517 Total investments segregated and on deposit for regulatory purposes - 7,947 - 7,947 Other securities owned: Schwab Funds ® money market funds 261 - - 261 Equity and bond mutual funds 205 - - 205 State and municipal debt obligations - 50 - 50 Equity, U.S. Government and corporate debt, and other securities 1 16 - 17 Total other securities owned 467 66 - 533 Securities available for sale: U.S. agency mortgage-backed securities - 22,149 - 22,149 Asset-backed securities - 21,485 - 21,485 Corporate debt securities - 10,747 - 10,747 U.S. Treasury securities - 5,704 - 5,704 U.S. agency notes - 3,150 - 3,150 Certificates of deposit - 1,683 - 1,683 U.S. state and municipal securities - 424 - 424 Non-agency commercial mortgage-backed securities - 299 - 299 Other securities - 5 - 5 Total securities available for sale - 65,646 - 65,646 Total $ 2,435 $ 74,019 $ - $ 76,454 |
Fair Value of Other Financial Instruments | Quoted Prices in Active Markets Significant Significant for Identical Other Observable Unobservable Carrying Assets Inputs Inputs Balance at September 30, 2016 Amount (Level 1) (Level 2) (Level 3) Fair Value Assets: Cash and cash equivalents $ 8,620 $ - $ 8,620 $ - $ 8,620 Cash and investments segregated and on deposit for regulatory purposes 13,461 - 13,461 - 13,461 Receivables from brokers, dealers, and clearing organizations 947 - 947 - 947 Receivables from brokerage clients – net 16,377 - 16,377 - 16,377 Securities held to maturity: U.S. agency mortgage-backed securities 64,836 - 66,570 - 66,570 Non-agency commercial mortgage-backed securities 997 - 1,040 - 1,040 U.S. Treasury securities 223 - 233 - 233 Total securities held to maturity 66,056 - 67,843 - 67,843 Bank loans: (1) Residential real estate mortgages 8,687 - 8,797 - 8,797 Home equity loans and lines of credit 2,472 - 2,614 - 2,614 Pledged asset lines 3,646 - 3,646 - 3,646 Other 79 - 79 - 79 Total bank loans 14,884 - 15,136 - 15,136 Other assets 291 - 291 - 291 Total $ 120,636 $ - $ 122,675 $ - $ 122,675 Liabilities: Bank deposits $ 149,630 $ - $ 149,630 $ - $ 149,630 Payables to brokers, dealers, and clearing organizations 3,497 - 3,497 - 3,497 Payables to brokerage clients 32,961 - 32,961 - 32,961 Accrued expenses and other liabilities 880 - 880 - 880 Short-term borrowings 3,001 - 3,001 - 3,001 Long-term debt 2,876 - 3,024 - 3,024 Total $ 192,845 $ - $ 192,993 $ - $ 192,993 (1) The carrying value of bank loans excludes the allowance for loan losses of $26 million at September 30, 2016. Quoted Prices in Active Markets Significant Significant for Identical Other Observable Unobservable Carrying Assets Inputs Inputs Balance at December 31, 2015 Amount (Level 1) (Level 2) (Level 3) Fair Value Assets: Cash and cash equivalents $ 9,650 $ - $ 9,650 $ - $ 9,650 Cash and investments segregated and on deposit for regulatory purposes 11,647 - 11,647 - 11,647 Receivables from brokers, dealers, and clearing organizations 582 - 582 - 582 Receivables from brokerage clients – net 17,310 - 17,310 - 17,310 Securities held to maturity: U.S. agency mortgage-backed securities 48,785 - 48,883 - 48,883 Non-agency commercial mortgage-backed securities 999 - 985 - 985 U.S. Treasury securities 223 - 220 - 220 Total securities held to maturity 50,007 - 50,088 - 50,088 Bank loans: (1) Residential real estate mortgages 8,334 - 8,347 - 8,347 Home equity loans and lines of credit 2,735 - 2,857 - 2,857 Pledged asset lines 3,232 - 3,232 - 3,232 Other 64 - 64 - 64 Total bank loans 14,365 - 14,500 - 14,500 Other assets 184 - 184 - 184 Total $ 103,745 $ - $ 103,961 $ - $ 103,961 Liabilities: Bank deposits $ 129,502 $ - $ 129,502 $ - $ 129,502 Payables to brokers, dealers, and clearing organizations 2,588 - 2,588 - 2,588 Payables to brokerage clients 33,185 - 33,185 - 33,185 Accrued expenses and other liabilities 1,115 - 1,115 - 1,115 Long-term debt (2) 2,877 - 2,967 - 2,967 Total $ 169,267 $ - $ 169,357 $ - $ 169,357 (1) The carrying value of bank loans excludes the allowance for loan losses of $31 million at December 31, 2015. (2) The amounts as of December 31, 2015 have been recast as a result of the adoption of ASU 2015-03, to present debt issuance costs of $ 13 million as a direct deduction from the carrying amount of the associated debt liability, consistent with the recording of debt discounts. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity [Abstract] | |
Preferred Stock Issued and Outstanding | September 30, 2016 December 31, 2015 Shares Shares Issued and Liquidation Issued and Liquidation Outstanding Preference Liquidation Carrying Outstanding Preference Liquidation Carrying (In thousands) Per Share Preference Value (In thousands) Per Share Preference Value Series A 400 $ 1,000 $ 400 $ 397 400 $ 1,000 $ 400 $ 396 Series B 485 1,000 485 483 485 1,000 485 480 Series C 600 1,000 600 585 600 1,000 600 583 Series D 750 1,000 750 727 - - - - Total Preferred Stock 2,235 $ 2,235 $ 2,192 1,485 $ 1,485 $ 1,459 |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
Components of Other Comprehensive Income (Loss) | Three Months Ended September 30, 2016 2015 Before Tax Net of Before Tax Net of Tax Effect Tax Tax Effect Tax Change in net unrealized gain on securities available for sale: Net unrealized gain (loss) $ 77 $ (29) $ 48 $ (249) $ 94 $ (155) Other reclassifications included in other revenue - - - - - - Change in net unrealized gain (loss) on securities available for sale 77 (29) 48 (249) 94 (155) Other comprehensive income (loss) $ 77 $ (29) $ 48 $ (249) $ 94 $ (155) Nine Months Ended September 30, 2016 2015 Before Tax Net of Before Tax Net of Tax Effect Tax Tax Effect Tax Change in net unrealized gain on securities available for sale: Net unrealized gain (loss) $ 266 $ (100) $ 166 $ (233) $ 87 $ (146) Other reclassifications included in other revenue (3) 1 (2) - - - Change in net unrealized gain (loss) on securities available for sale 263 (99) 164 (233) 87 (146) Other 1 - 1 - - - Other comprehensive income (loss) $ 264 $ (99) $ 165 $ (233) $ 87 $ (146) |
Accumulated Other Comprehensive Income Balances | Total Accumulated Other Comprehensive Income Balance at December 31, 2014 $ 165 Net unrealized loss on securities available for sale (146) Balance at September 30, 2015 $ 19 Balance at December 31, 2015 $ (134) Net unrealized gain on securities available for sale 164 Other 1 Balance at September 30, 2016 $ 31 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Common Share [Abstract] | |
EPS under Basic and Diluted Computations | Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Net income $ 503 $ 376 $ 1,367 $ 1,031 Preferred stock dividends and other (1) (33) (11) (99) (45) Net income available to common stockholders $ 470 $ 365 $ 1,268 $ 986 Weighted-average common shares outstanding — basic 1,324 1,316 1,322 1,315 Common stock equivalent shares related to stock incentive plans 10 12 10 11 Weighted-average common shares outstanding — diluted (2) 1,334 1,328 1,332 1,326 Basic EPS $ .36 $ .28 $ .96 $ .75 Diluted EPS $ .35 $ .28 $ .95 $ .74 (1) Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested restricted stock units. (2) Antidilutive stock options and restricted stock awards excluded from the calculation of diluted EPS totaled 17 million and 1 4 million shares for the third quarters of 2016 and 2015, respectively, and 21 million and 16 million shares for the first nine months of 2016 and 2015, respectively. |
Regulatory Requirements (Tables
Regulatory Requirements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Regulatory Requirements [Abstract] | |
Regulatory Capital and Ratios | Minimum to be Minimum Capital Actual Well Capitalized Requirement September 30, 2016 Amount Ratio Amount Ratio Amount Ratio CSC Common Equity Tier 1 Risk-Based Capital $ 12,015 18.0 % N/A $ 3,006 4.5 % Tier 1 Risk-Based Capital 14,207 21.3 % N/A 4,008 6.0 % Total Risk-Based Capital 14,234 21.3 % N/A 5,343 8.0 % Tier 1 Leverage 14,207 7.1 % N/A 7,996 4.0 % Schwab Bank Common Equity Tier 1 Risk-Based Capital $ 11,142 18.8 % $ 3,843 6.5 % $ 2,660 4.5 % Tier 1 Risk-Based Capital 11,142 18.8 % 4,730 8.0 % 3,547 6.0 % Total Risk-Based Capital 11,168 18.9 % 5,912 10.0 % 4,730 8.0 % Tier 1 Leverage 11,142 7.0 % 7,910 5.0 % 6,328 4.0 % December 31, 2015 CSC Common Equity Tier 1 Risk-Based Capital $ 10,851 18.2 % N/A $ 2,681 4.5 % Tier 1 Risk-Based Capital 12,310 20.7 % N/A 3,575 6.0 % Total Risk-Based Capital 12,342 20.7 % N/A 4,766 8.0 % Tier 1 Leverage 12,310 7.1 % N/A 6,912 4.0 % Schwab Bank Common Equity Tier 1 Risk-Based Capital $ 9,314 18.1 % $ 3,349 6.5 % $ 2,318 4.5 % Tier 1 Risk-Based Capital 9,314 18.1 % 4,121 8.0 % 3,091 6.0 % Total Risk-Based Capital 9,345 18.1 % 5,152 10.0 % 4,121 8.0 % Tier 1 Leverage 9,314 7.1 % 6,594 5.0 % 5,275 4.0 % N/A Not applicable. |
Net Capital and Net Capital Requirements for Schwab and optionsXpress, Inc. | Net Capital Minimum 2% of in Excess of Net Capital Aggregate Required September 30, 2016 Net Capital Required Debit Balances Net Capital Schwab $ 1,890 $ 0.250 $ 344 $ 1,546 optionsXpress, Inc. 269 1 7 262 December 31, 2015 Schwab $ 1,746 $ 0.250 $ 358 $ 1,388 optionsXpress, Inc. 244 1 7 237 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Information [Abstract] | |
Financial Information for Reportable Segments | Investor Services (1) Advisor Services (1) Total Three Months Ended September 30, 2016 2015 2016 2015 2016 2015 Net Revenues: Asset management and administration fees $ 550 $ 461 $ 248 $ 202 $ 798 $ 663 Net interest revenue 654 534 191 101 845 635 Trading revenue 123 148 67 80 190 228 Other 56 45 20 21 76 66 Provision for loan losses 4 4 1 1 5 5 Total net revenues 1,387 1,192 527 405 1,914 1,597 Expenses Excluding Interest 847 762 273 252 1,120 1,014 Income before taxes on income $ 540 $ 430 $ 254 $ 153 $ 794 $ 583 Investor Services (1) Advisor Services (1) Total Nine Months Ended September 30, 2016 2015 2016 2015 2016 2015 Net Revenues: Asset management and administration fees $ 1,536 $ 1,372 $ 718 $ 605 $ 2,254 $ 1,977 Net interest revenue 1,895 1,568 520 267 2,415 1,835 Trading revenue 395 428 228 230 623 658 Other 153 146 56 62 209 208 Provision for loan losses 4 10 1 1 5 11 Total net revenues 3,983 3,524 1,523 1,165 5,506 4,689 Expenses Excluding Interest 2,518 2,308 819 747 3,337 3,055 Income before taxes on income $ 1,465 $ 1,216 $ 704 $ 418 $ 2,169 $ 1,634 (1) The Corporate Brokerage Retirement Services business was transferred from the Investor Services segment to the Advisor Services segment in the fourth quarter of 2015. Prior period information has been recast to reflect these changes. |
Introduction and Basis of Pre37
Introduction and Basis of Presentation (Details) | Sep. 30, 2016stateitem |
Introduction and Basis of Presentation [Abstract] | |
Minimum number of domestic branch offices | item | 330 |
States with domestic branch offices | state | 46 |
New Accounting Standards (Detai
New Accounting Standards (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other assets | $ 1,292 | $ 1,161 | [1] |
Total assets | 209,337 | 183,705 | [1] |
Long-term debt | 2,876 | 2,877 | [1] |
Total liabilities | $ 193,867 | 170,303 | [1] |
Accounting Standards Update 2015-03 [Member] | Restatement Adjustment [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other assets | (13) | ||
Total assets | (13) | ||
Long-term debt | (13) | ||
Total liabilities | $ (13) | ||
[1] | Adjusted for the retrospective adoption of ASU 2015-03. See "Notes - 2. New Accounting Standards" for additional information. |
Securities Available for Sale39
Securities Available for Sale and Securities Held to Maturity (Narrative) (Details) $ in Millions | Sep. 30, 2016USD ($) |
Securities Available for Sale and Securities Held to Maturity [Abstract] | |
Fair value of pledged securities | $ 170 |
Securities Available for Sale40
Securities Available for Sale and Securities Held to Maturity (Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Securities Available for Sale) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Securities available for sale, Amortized Cost | $ 75,742 | $ 65,860 | |
Securities available for sale Gross Unrealized Gains | 364 | 218 | |
Securities available for sale Gross Unrealized Losses | 315 | 432 | |
Securities available for sale, Fair Value | 75,791 | 65,646 | [1] |
U.S. agency mortgage-backed securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Securities available for sale, Amortized Cost | 33,195 | 22,014 | |
Securities available for sale Gross Unrealized Gains | 219 | 183 | |
Securities available for sale Gross Unrealized Losses | 44 | 48 | |
Securities available for sale, Fair Value | 33,370 | 22,149 | |
Asset-backed securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Securities available for sale, Amortized Cost | 21,736 | 21,784 | |
Securities available for sale Gross Unrealized Gains | 30 | 7 | |
Securities available for sale Gross Unrealized Losses | 266 | 306 | |
Securities available for sale, Fair Value | 21,500 | 21,485 | |
Corporate debt securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Securities available for sale, Amortized Cost | 10,067 | 10,764 | |
Securities available for sale Gross Unrealized Gains | 54 | 14 | |
Securities available for sale Gross Unrealized Losses | 2 | 31 | |
Securities available for sale, Fair Value | 10,119 | 10,747 | |
U.S. Treasury securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Securities available for sale, Amortized Cost | 4,966 | 5,719 | |
Securities available for sale Gross Unrealized Gains | 33 | 2 | |
Securities available for sale Gross Unrealized Losses | 17 | ||
Securities available for sale, Fair Value | 4,999 | 5,704 | |
U.S. agency notes [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Securities available for sale, Amortized Cost | 2,206 | 3,177 | |
Securities available for sale Gross Unrealized Losses | 1 | 27 | |
Securities available for sale, Fair Value | 2,205 | 3,150 | |
Certificates of deposit [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Securities available for sale, Amortized Cost | 2,295 | 1,685 | |
Securities available for sale Gross Unrealized Gains | 2 | 1 | |
Securities available for sale Gross Unrealized Losses | 1 | 3 | |
Securities available for sale, Fair Value | 2,296 | 1,683 | |
U.S. state and municipal securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Securities available for sale, Amortized Cost | 1,012 | 414 | |
Securities available for sale Gross Unrealized Gains | 26 | 10 | |
Securities available for sale Gross Unrealized Losses | 1 | ||
Securities available for sale, Fair Value | 1,037 | 424 | |
Commercial paper [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Securities available for sale, Amortized Cost | 214 | ||
Securities available for sale, Fair Value | 214 | ||
Non-agency commercial mortgage-backed securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Securities available for sale, Amortized Cost | 51 | 298 | |
Securities available for sale Gross Unrealized Gains | 1 | ||
Securities available for sale, Fair Value | $ 51 | 299 | |
Other securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Securities available for sale, Amortized Cost | 5 | ||
Securities available for sale, Fair Value | $ 5 | ||
[1] | Adjusted for the retrospective adoption of ASU 2015-03. See "Notes - 2. New Accounting Standards" for additional information. |
Securities Available for Sale41
Securities Available for Sale and Securities Held to Maturity (Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Securities Held to Maturity) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Securities held to maturity, Amortized Cost | $ 66,056 | $ 50,007 | [1] |
Securities held to maturity, Gross Unrealized Gains | 1,791 | 397 | |
Securities held to maturity, Gross Unrealized Losses | 4 | 316 | |
Securities held to maturity, Fair Value | 67,843 | 50,088 | |
U.S. agency mortgage-backed securities [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Securities held to maturity, Amortized Cost | 64,836 | 48,785 | |
Securities held to maturity, Gross Unrealized Gains | 1,738 | 391 | |
Securities held to maturity, Gross Unrealized Losses | 4 | 293 | |
Securities held to maturity, Fair Value | 66,570 | 48,883 | |
Non-agency commercial mortgage-backed securities [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Securities held to maturity, Amortized Cost | 997 | 999 | |
Securities held to maturity, Gross Unrealized Gains | 43 | 6 | |
Securities held to maturity, Gross Unrealized Losses | 20 | ||
Securities held to maturity, Fair Value | 1,040 | 985 | |
U.S. Treasury securities [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Securities held to maturity, Amortized Cost | 223 | 223 | |
Securities held to maturity, Gross Unrealized Gains | 10 | ||
Securities held to maturity, Gross Unrealized Losses | 3 | ||
Securities held to maturity, Fair Value | $ 233 | $ 220 | |
[1] | Adjusted for the retrospective adoption of ASU 2015-03. See "Notes - 2. New Accounting Standards" for additional information. |
Securities Available for Sale42
Securities Available for Sale and Securities Held to Maturity (Available For Sale Securities with Unrealized Losses, Aggregated by Category and Period of Continuous Unrealized Loss) (Details) $ in Millions | Sep. 30, 2016USD ($)security | Dec. 31, 2015USD ($)security |
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available for sale Less than 12 months Fair Value | $ 13,393 | $ 38,165 |
Securities available for sale Less than 12 months Unrealized Losses | 39 | 341 |
Securities available for sale 12 months or longer Fair Value | 14,258 | 6,644 |
Securities available for sale 12 months or longer Unrealized Losses | 276 | 91 |
Total Securities available for sale with unrealized losses Total Fair Value | 27,651 | 44,809 |
Total Securities available for sale with unrealized losses Total Unrealized Losses | $ 315 | $ 432 |
Number of available for sale securities in unrealized loss positions | security | 339 | 409 |
U.S. agency mortgage-backed securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available for sale Less than 12 months Fair Value | $ 10,233 | $ 8,541 |
Securities available for sale Less than 12 months Unrealized Losses | 21 | 47 |
Securities available for sale 12 months or longer Fair Value | 2,672 | 813 |
Securities available for sale 12 months or longer Unrealized Losses | 23 | 1 |
Total Securities available for sale with unrealized losses Total Fair Value | 12,905 | 9,354 |
Total Securities available for sale with unrealized losses Total Unrealized Losses | 44 | 48 |
Asset-backed securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available for sale Less than 12 months Fair Value | 1,235 | 17,127 |
Securities available for sale Less than 12 months Unrealized Losses | 14 | 240 |
Securities available for sale 12 months or longer Fair Value | 10,504 | 2,743 |
Securities available for sale 12 months or longer Unrealized Losses | 252 | 66 |
Total Securities available for sale with unrealized losses Total Fair Value | 11,739 | 19,870 |
Total Securities available for sale with unrealized losses Total Unrealized Losses | 266 | 306 |
Corporate debt securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available for sale Less than 12 months Fair Value | 758 | 5,433 |
Securities available for sale Less than 12 months Unrealized Losses | 1 | 25 |
Securities available for sale 12 months or longer Fair Value | 882 | 942 |
Securities available for sale 12 months or longer Unrealized Losses | 1 | 6 |
Total Securities available for sale with unrealized losses Total Fair Value | 1,640 | 6,375 |
Total Securities available for sale with unrealized losses Total Unrealized Losses | 2 | 31 |
U.S. Treasury securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available for sale Less than 12 months Fair Value | 5,010 | |
Securities available for sale Less than 12 months Unrealized Losses | 17 | |
Total Securities available for sale with unrealized losses Total Fair Value | 5,010 | |
Total Securities available for sale with unrealized losses Total Unrealized Losses | 17 | |
U.S. agency notes [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available for sale Less than 12 months Fair Value | 499 | 1,281 |
Securities available for sale Less than 12 months Unrealized Losses | 1 | 10 |
Securities available for sale 12 months or longer Fair Value | 1,547 | |
Securities available for sale 12 months or longer Unrealized Losses | 17 | |
Total Securities available for sale with unrealized losses Total Fair Value | 499 | 2,828 |
Total Securities available for sale with unrealized losses Total Unrealized Losses | 1 | 27 |
Certificates of deposit [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available for sale Less than 12 months Fair Value | 544 | 773 |
Securities available for sale Less than 12 months Unrealized Losses | 1 | 2 |
Securities available for sale 12 months or longer Fair Value | 200 | 599 |
Securities available for sale 12 months or longer Unrealized Losses | 1 | |
Total Securities available for sale with unrealized losses Total Fair Value | 744 | 1,372 |
Total Securities available for sale with unrealized losses Total Unrealized Losses | 1 | $ 3 |
U.S. state and municipal securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available for sale Less than 12 months Fair Value | 124 | |
Securities available for sale Less than 12 months Unrealized Losses | 1 | |
Total Securities available for sale with unrealized losses Total Fair Value | 124 | |
Total Securities available for sale with unrealized losses Total Unrealized Losses | $ 1 |
Securities Available for Sale43
Securities Available for Sale and Securities Held to Maturity (Held To Maturity Securities with Unrealized Losses, Aggregated by Category and Period of Continuous Unrealized Loss) (Details) $ in Millions | Sep. 30, 2016USD ($)security | Dec. 31, 2015USD ($)security |
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity Less than 12 months Fair Value | $ 2,475 | $ 25,168 |
Securities held to maturity Less than 12 months Unrealized Losses | 4 | 276 |
Securities held to maturity 12 months or longer Fair Value | 1,842 | |
Securities held to maturity 12 months or longer Unrealized Losses | 40 | |
Total Securities held to maturity with unrealized losses Total Fair Value | 2,475 | 27,010 |
Total Securities held to maturity with unrealized losses Total Unrealized Losses | $ 4 | $ 316 |
Number of held to maturity securities in unrealized loss positions | security | 24 | 286 |
U.S. agency mortgage-backed securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity Less than 12 months Fair Value | $ 2,475 | $ 24,219 |
Securities held to maturity Less than 12 months Unrealized Losses | 4 | 253 |
Securities held to maturity 12 months or longer Fair Value | 1,842 | |
Securities held to maturity 12 months or longer Unrealized Losses | 40 | |
Total Securities held to maturity with unrealized losses Total Fair Value | 2,475 | 26,061 |
Total Securities held to maturity with unrealized losses Total Unrealized Losses | $ 4 | 293 |
Non-agency commercial mortgage-backed securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity Less than 12 months Fair Value | 729 | |
Securities held to maturity Less than 12 months Unrealized Losses | 20 | |
Total Securities held to maturity with unrealized losses Total Fair Value | 729 | |
Total Securities held to maturity with unrealized losses Total Unrealized Losses | 20 | |
U.S. Treasury securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity Less than 12 months Fair Value | 220 | |
Securities held to maturity Less than 12 months Unrealized Losses | 3 | |
Total Securities held to maturity with unrealized losses Total Fair Value | 220 | |
Total Securities held to maturity with unrealized losses Total Unrealized Losses | $ 3 |
Securities Available for Sale44
Securities Available for Sale and Securities Held to Maturity (Securities with Unrealized Losses, Aggregated by Category and Period of Continuous Unrealized Loss) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Securities Available for Sale and Securities Held to Maturity [Abstract] | ||
Securities available for sale Less than 12 months Fair Value | $ 13,393 | $ 38,165 |
Securities available for sale Less than 12 months Unrealized Losses | 39 | 341 |
Securities available for sale 12 months or longer Fair Value | 14,258 | 6,644 |
Securities available for sale 12 months or longer Unrealized Losses | 276 | 91 |
Total Securities available for sale with unrealized losses Total Fair Value | 27,651 | 44,809 |
Total Securities available for sale with unrealized losses Total Unrealized Losses | 315 | 432 |
Securities held to maturity Less than 12 months Fair Value | 2,475 | 25,168 |
Securities held to maturity Less than 12 months Unrealized Losses | 4 | 276 |
Securities held to maturity 12 months or longer Fair Value | 1,842 | |
Securities held to maturity 12 months or longer Unrealized Losses | 40 | |
Total Securities held to maturity with unrealized losses Total Fair Value | 2,475 | 27,010 |
Total Securities held to maturity with unrealized losses Total Unrealized Losses | 4 | 316 |
Securities Less than 12 months Fair Value | 15,868 | 63,333 |
Securities Less than 12 months Unrealized Losses | 43 | 617 |
Securities 12 months or longer Fair Value | 14,258 | 8,486 |
Securities 12 months or longer Unrealized Losses | 276 | 131 |
Total securities with unrealized losses Total Fair Value | 30,126 | 71,819 |
Total securities with unrealized losses Total Unrealized Losses | $ 319 | $ 748 |
Securities Available for Sale45
Securities Available for Sale and Securities Held to Maturity (Maturities of Securities Available for Sale) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Securities available for sale, Within 1 year | $ 3,523 | ||
Securities available for sale, After 1 year through 5 years | 28,645 | ||
Securities available for sale, After 5 years through 10 years | 21,374 | ||
Securities available for sale, After 10 years | 22,249 | ||
Securities available for sale, Fair Value | 75,791 | $ 65,646 | [1] |
Securities available for sale, Within 1 year amortized cost | 3,517 | ||
Securities available for sale, After 1 year through 5 years amortized cost | 28,473 | ||
Securities available for sale, After 5 years through 10 years amortized cost | 21,386 | ||
Securities available for sale, After 10 years amortized cost | 22,366 | ||
Securities available for sale, Amortized Cost | 75,742 | 65,860 | |
U.S. agency mortgage-backed securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Securities available for sale, After 1 year through 5 years | 3,417 | ||
Securities available for sale, After 5 years through 10 years | 16,966 | ||
Securities available for sale, After 10 years | 12,987 | ||
Securities available for sale, Fair Value | 33,370 | 22,149 | |
Securities available for sale, Amortized Cost | 33,195 | 22,014 | |
Asset-backed securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Securities available for sale, After 1 year through 5 years | 9,125 | ||
Securities available for sale, After 5 years through 10 years | 4,150 | ||
Securities available for sale, After 10 years | 8,225 | ||
Securities available for sale, Fair Value | 21,500 | 21,485 | |
Securities available for sale, Amortized Cost | 21,736 | 21,784 | |
Corporate debt securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Securities available for sale, Within 1 year | 2,233 | ||
Securities available for sale, After 1 year through 5 years | 7,886 | ||
Securities available for sale, Fair Value | 10,119 | 10,747 | |
Securities available for sale, Amortized Cost | 10,067 | 10,764 | |
U.S. Treasury securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Securities available for sale, Within 1 year | 200 | ||
Securities available for sale, After 1 year through 5 years | 4,592 | ||
Securities available for sale, After 5 years through 10 years | 207 | ||
Securities available for sale, Fair Value | 4,999 | 5,704 | |
Securities available for sale, Amortized Cost | 4,966 | 5,719 | |
U.S. agency notes [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Securities available for sale, After 1 year through 5 years | 2,205 | ||
Securities available for sale, Fair Value | 2,205 | 3,150 | |
Securities available for sale, Amortized Cost | 2,206 | 3,177 | |
Certificates of deposit [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Securities available for sale, Within 1 year | 876 | ||
Securities available for sale, After 1 year through 5 years | 1,420 | ||
Securities available for sale, Fair Value | 2,296 | 1,683 | |
Securities available for sale, Amortized Cost | 2,295 | 1,685 | |
U.S. state and municipal securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Securities available for sale, After 5 years through 10 years | 51 | ||
Securities available for sale, After 10 years | 986 | ||
Securities available for sale, Fair Value | 1,037 | 424 | |
Securities available for sale, Amortized Cost | 1,012 | 414 | |
Commercial paper [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Securities available for sale, Within 1 year | 214 | ||
Securities available for sale, Fair Value | 214 | ||
Securities available for sale, Amortized Cost | 214 | ||
Non-agency commercial mortgage-backed securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Securities available for sale, After 10 years | 51 | ||
Securities available for sale, Fair Value | 51 | 299 | |
Securities available for sale, Amortized Cost | $ 51 | $ 298 | |
[1] | Adjusted for the retrospective adoption of ASU 2015-03. See "Notes - 2. New Accounting Standards" for additional information. |
Securities Available for Sale46
Securities Available for Sale and Securities Held to Maturity (Maturities of Securities Held to Maturity) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Securities held to maturity, Within 1 year | |||
Securities held to maturity, After 1 year through 5 years | 4,201 | ||
Securities held to maturity, After 5 years through 10 years | 23,556 | ||
Securities held to maturity, After 10 years | 40,086 | ||
Securities held to maturity, Fair Value | 67,843 | $ 50,088 | |
Securities held to maturity, Within 1 year amortized cost | |||
Securities held to maturity, After 1 year through 5 years amortized cost | 4,019 | ||
Securities held to maturity, After 5 years through 10 years amortized cost | 22,605 | ||
Securities held to maturity, After 10 years amortized cost | 39,432 | ||
Securities held to maturity, Amortized Cost | 66,056 | 50,007 | [1] |
U.S. agency mortgage-backed securities [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Securities held to maturity, Within 1 year | |||
Securities held to maturity, After 1 year through 5 years | 4,201 | ||
Securities held to maturity, After 5 years through 10 years | 22,947 | ||
Securities held to maturity, After 10 years | 39,422 | ||
Securities held to maturity, Fair Value | 66,570 | 48,883 | |
Securities held to maturity, Amortized Cost | 64,836 | 48,785 | |
Non-agency commercial mortgage-backed securities [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Securities held to maturity, After 5 years through 10 years | 376 | ||
Securities held to maturity, After 10 years | 664 | ||
Securities held to maturity, Fair Value | 1,040 | 985 | |
Securities held to maturity, Amortized Cost | 997 | 999 | |
U.S. Treasury securities [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Securities held to maturity, After 5 years through 10 years | 233 | ||
Securities held to maturity, Fair Value | 233 | 220 | |
Securities held to maturity, Amortized Cost | $ 223 | $ 223 | |
[1] | Adjusted for the retrospective adoption of ASU 2015-03. See "Notes - 2. New Accounting Standards" for additional information. |
Securities Available for Sale47
Securities Available for Sale and Securities Held to Maturity (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, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Securities Available for Sale and Securities Held to Maturity [Abstract] | ||||
Proceeds | $ 571 | $ 5 | $ 4,645 | $ 599 |
Gross realized gains | $ 3 | 1 | ||
Gross realized losses | $ 1 |
Bank Loans and Related Allowa48
Bank Loans and Related Allowance for Loan Losses (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016USD ($)loan | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)loan | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($)loan | |
Loans Receivable [Line Items] | |||||
Commitments to extend credit related to unused HELOCs, PALs, and other lines of credit | $ 8,200 | $ 8,200 | $ 7,400 | ||
Commitments to purchase First Mortgage loans | $ 898 | $ 260 | |||
Number of loans accruing interest contractually 90 days or more past due | loan | 0 | 0 | 0 | ||
Nonperforming assets, including nonaccrual loans and other real estate owned | $ 35 | $ 35 | $ 36 | ||
Impaired assets, which include nonaccrual loans, other real estate owned and troubled debt restructurings | 48 | 48 | 50 | ||
First Mortgage [Member] | |||||
Loans Receivable [Line Items] | |||||
Purchased first mortgages and HELOCs | 858 | $ 469 | 2,100 | $ 1,500 | |
Home equity loans and lines of credit [Member] | |||||
Loans Receivable [Line Items] | |||||
Purchased first mortgages and HELOCs | 93 | $ 150 | 315 | $ 432 | |
First Mortgage and Home Equity Loans and Lines of Credit [Member] | |||||
Loans Receivable [Line Items] | |||||
Unamortized premiums and discounts and direct origination costs | $ 78 | $ 78 | $ 80 | ||
First Mortgage and Home Equity Loans and Lines of Credit [Member] | California [Member] | Loans, Geographic Area [Member] | |||||
Loans Receivable [Line Items] | |||||
Concentration risk percentage | 48.00% | 48.00% |
Bank Loans and Related Allowa49
Bank Loans and Related Allowance for Loan Losses (Composition of Bank Loans and Delinquency Analysis by Loan Segment) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Current | $ 14,839 | $ 14,316 | |||||
Past due and other nonaccrual loans | 45 | 49 | |||||
Total loans | 14,884 | 14,365 | |||||
Allowance for loan losses | 26 | $ 31 | 31 | $ 31 | $ 36 | $ 42 | |
Total bank loans — net | 14,858 | 14,334 | [1] | ||||
30-59 Days Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Past due and other nonaccrual loans | 12 | 18 | |||||
60-89 Days Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Past due and other nonaccrual loans | 5 | 3 | |||||
>90 Days Past Due And Other Nonaccrual Loans [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Past due and other nonaccrual loans | 28 | 28 | |||||
Residential real estate mortgages [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Current | 8,660 | 8,304 | |||||
Past due and other nonaccrual loans | 27 | 30 | |||||
Total loans | 8,687 | 8,334 | |||||
Allowance for loan losses | 15 | 20 | 20 | 20 | 23 | 29 | |
Total bank loans — net | 8,672 | 8,314 | |||||
Residential real estate mortgages [Member] | 30-59 Days Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Past due and other nonaccrual loans | 8 | 11 | |||||
Residential real estate mortgages [Member] | 60-89 Days Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Past due and other nonaccrual loans | 4 | 1 | |||||
Residential real estate mortgages [Member] | >90 Days Past Due And Other Nonaccrual Loans [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Past due and other nonaccrual loans | 15 | 18 | |||||
Home equity loans and lines of credit [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Current | 2,456 | 2,720 | |||||
Past due and other nonaccrual loans | 16 | 15 | |||||
Total loans | 2,472 | 2,735 | |||||
Allowance for loan losses | 10 | 10 | 11 | $ 11 | $ 13 | $ 13 | |
Total bank loans — net | 2,462 | 2,724 | |||||
Home equity loans and lines of credit [Member] | 30-59 Days Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Past due and other nonaccrual loans | 4 | 4 | |||||
Home equity loans and lines of credit [Member] | 60-89 Days Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Past due and other nonaccrual loans | 1 | 1 | |||||
Home equity loans and lines of credit [Member] | >90 Days Past Due And Other Nonaccrual Loans [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Past due and other nonaccrual loans | 11 | 10 | |||||
Pledged asset lines [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Current | 3,644 | 3,228 | |||||
Past due and other nonaccrual loans | 2 | 4 | |||||
Total loans | 3,646 | 3,232 | |||||
Total bank loans — net | 3,646 | 3,232 | |||||
Pledged asset lines [Member] | 30-59 Days Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Past due and other nonaccrual loans | 3 | ||||||
Pledged asset lines [Member] | 60-89 Days Past Due [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Past due and other nonaccrual loans | 1 | ||||||
Pledged asset lines [Member] | >90 Days Past Due And Other Nonaccrual Loans [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Past due and other nonaccrual loans | 2 | ||||||
Other [Member] | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Current | 79 | 64 | |||||
Total loans | 79 | 64 | |||||
Allowance for loan losses | 1 | $ 1 | |||||
Total bank loans — net | $ 78 | $ 64 | |||||
[1] | Adjusted for the retrospective adoption of ASU 2015-03. See "Notes - 2. New Accounting Standards" for additional information. |
Bank Loans and Related Allowa50
Bank Loans and Related Allowance for Loan Losses (Changes in Allowance for Loan Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance at beginning of period | $ 31 | $ 36 | $ 31 | $ 42 |
Charge-offs | (1) | (2) | ||
Recoveries | 1 | 1 | 3 | |
Provision for loan losses | (5) | (6) | (5) | (12) |
Balance at end of period | 26 | 31 | 26 | 31 |
Residential real estate mortgages [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance at beginning of period | 20 | 23 | 20 | 29 |
Charge-offs | (1) | |||
Recoveries | 1 | 1 | 1 | |
Provision for loan losses | (5) | (4) | (5) | (10) |
Balance at end of period | 15 | 20 | 15 | 20 |
Home equity loans and lines of credit [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance at beginning of period | 10 | 13 | 11 | 13 |
Charge-offs | (2) | |||
Recoveries | 2 | |||
Provision for loan losses | (2) | (1) | (2) | |
Balance at end of period | 10 | $ 11 | 10 | $ 11 |
Other [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance at beginning of period | 1 | |||
Charge-offs | ||||
Recoveries | ||||
Provision for loan losses | 1 | |||
Balance at end of period | $ 1 | $ 1 |
Bank Loans and Related Allowa51
Bank Loans and Related Allowance for Loan Losses (Credit Quality Indicators of Bank Loan Portfolio) (Details) $ in Millions | Sep. 30, 2016USD ($)item | Dec. 31, 2015USD ($)item |
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 14,884 | $ 14,365 |
Residential real estate mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 8,687 | $ 8,334 |
Weighted Average Updated FICO | item | 774 | 773 |
Percent of Loans on Nonaccrual Status | 0.08% | 0.11% |
Residential real estate mortgages [Member] | Origination FICO Score Below 620 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 8 | $ 10 |
Residential real estate mortgages [Member] | Origination FICO Score 620 Through 679 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 91 | 88 |
Residential real estate mortgages [Member] | Origination FICO Score 680 Through 739 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,378 | 1,381 |
Residential real estate mortgages [Member] | Origination FICO Score 740 And Above [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 7,210 | 6,855 |
Residential real estate mortgages [Member] | Year of origination Pre 2012 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,100 | 1,306 |
Residential real estate mortgages [Member] | Year of origination 2012 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,263 | 1,644 |
Residential real estate mortgages [Member] | Year of origination 2013 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,950 | 2,450 |
Residential real estate mortgages [Member] | Year of origination 2014 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 766 | 1,021 |
Residential real estate mortgages [Member] | Year of origination 2015 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,599 | 1,913 |
Residential real estate mortgages [Member] | Year of origination 2016 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 2,009 | |
Residential real estate mortgages [Member] | Estimated Current LTV 70% And Below [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 7,994 | $ 7,508 |
Weighted Average Updated FICO | item | 775 | 774 |
Percent of Loans on Nonaccrual Status | 0.02% | 0.03% |
Residential real estate mortgages [Member] | Estimated Current LTV Greater Than 70% through 90% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 645 | $ 759 |
Weighted Average Updated FICO | item | 766 | 764 |
Percent of Loans on Nonaccrual Status | 0.18% | 0.31% |
Residential real estate mortgages [Member] | Estimated Current LTV Greater Than 90% through 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 22 | $ 37 |
Weighted Average Updated FICO | item | 732 | 736 |
Percent of Loans on Nonaccrual Status | 3.48% | 5.54% |
Residential real estate mortgages [Member] | Estimated Current LTV Greater Than 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 26 | $ 30 |
Weighted Average Updated FICO | item | 719 | 713 |
Percent of Loans on Nonaccrual Status | 13.54% | 7.72% |
Residential real estate mortgages [Member] | Origination Loan To Value Ratio 70% And Below [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 6,410 | $ 5,913 |
Residential real estate mortgages [Member] | Origination Loan to Value Ratio Greater Than 70% Through 90% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 2,267 | 2,408 |
Residential real estate mortgages [Member] | Origination Loan to Value Ratio Greater Than 90% Through 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 10 | 13 |
Home equity loans and lines of credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 2,472 | $ 2,735 |
Weighted Average Updated FICO | item | 770 | 770 |
Utilization Rate | 37.00% | 39.00% |
Percent of Loans on Nonaccrual Status | 0.24% | 0.18% |
Home equity loans and lines of credit [Member] | Origination FICO Score 620 Through 679 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 14 | $ 16 |
Home equity loans and lines of credit [Member] | Origination FICO Score 680 Through 739 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 451 | 498 |
Home equity loans and lines of credit [Member] | Origination FICO Score 740 And Above [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 2,007 | 2,221 |
Home equity loans and lines of credit [Member] | Year of origination Pre 2012 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,766 | 2,048 |
Home equity loans and lines of credit [Member] | Year of origination 2012 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 111 | 125 |
Home equity loans and lines of credit [Member] | Year of origination 2013 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 206 | 232 |
Home equity loans and lines of credit [Member] | Year of origination 2014 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 166 | 188 |
Home equity loans and lines of credit [Member] | Year of origination 2015 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 155 | 142 |
Home equity loans and lines of credit [Member] | Year of origination 2016 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 68 | |
Home equity loans and lines of credit [Member] | Estimated Current LTV 70% And Below [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 2,146 | $ 2,277 |
Weighted Average Updated FICO | item | 772 | 772 |
Utilization Rate | 36.00% | 37.00% |
Percent of Loans on Nonaccrual Status | 0.15% | 0.09% |
Home equity loans and lines of credit [Member] | Estimated Current LTV Greater Than 70% through 90% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 270 | $ 373 |
Weighted Average Updated FICO | item | 758 | 760 |
Utilization Rate | 49.00% | 50.00% |
Percent of Loans on Nonaccrual Status | 0.55% | 0.48% |
Home equity loans and lines of credit [Member] | Estimated Current LTV Greater Than 90% through 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 33 | $ 48 |
Weighted Average Updated FICO | item | 750 | 748 |
Utilization Rate | 60.00% | 63.00% |
Percent of Loans on Nonaccrual Status | 1.66% | 1.02% |
Home equity loans and lines of credit [Member] | Estimated Current LTV Greater Than 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 23 | $ 37 |
Weighted Average Updated FICO | item | 737 | 739 |
Utilization Rate | 65.00% | 67.00% |
Percent of Loans on Nonaccrual Status | 3.05% | 1.79% |
Home equity loans and lines of credit [Member] | Origination Loan To Value Ratio 70% And Below [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 1,701 | $ 1,858 |
Home equity loans and lines of credit [Member] | Origination Loan to Value Ratio Greater Than 70% Through 90% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 757 | 860 |
Home equity loans and lines of credit [Member] | Origination Loan to Value Ratio Greater Than 90% Through 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 14 | 17 |
Pledged asset lines [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 3,646 | 3,232 |
Pledged asset lines [Member] | Weighted Average Loan to Value Ratio =70% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 3,646 | $ 3,232 |
Weighted Average Updated FICO | item | 763 | 764 |
Utilization Rate | 47.00% | 49.00% |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2015 | ||
Variable Interest Entity [Line Items] | |||
Accrued expenses and other liabilities | $ 1,902 | $ 2,151 | [1] |
LIHTC Investments [Member] | |||
Variable Interest Entity [Line Items] | |||
Investment carrying value | 153 | 104 | |
Accrued expenses and other liabilities | $ 110 | $ 84 | |
LIHTC Investments [Member] | Minimum [Member] | |||
Variable Interest Entity [Line Items] | |||
Commitment, expected payment date | 2,016 | ||
LIHTC Investments [Member] | Maximum [Member] | |||
Variable Interest Entity [Line Items] | |||
Commitment, expected payment date | 2,019 | ||
[1] | Adjusted for the retrospective adoption of ASU 2015-03. See "Notes - 2. New Accounting Standards" for additional information. |
Variable Interest Entities (Agg
Variable Interest Entities (Aggregate Assets, Liabilities and Maximum Exposure to Loss) (Details) - Variable Interest Entity, Not Primary Beneficiary [Member] - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Variable Interest Entity [Line Items] | ||
Aggregate assets | $ 208 | $ 161 |
Aggregate liabilities | 110 | 84 |
Maximum exposure to loss | 218 | 170 |
LIHTC Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Aggregate assets | 153 | 104 |
Aggregate liabilities | 110 | 84 |
Maximum exposure to loss | 153 | 104 |
Other CRA Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Aggregate assets | 55 | 57 |
Maximum exposure to loss | $ 65 | $ 66 |
Bank Deposits (Deposits from Ba
Bank Deposits (Deposits from Banking Clients Consisting of Interest Bearing and Noninterest Bearing Deposits) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Interest-bearing deposits: | |||
Deposits swept from brokerage accounts | $ 127,866 | $ 108,137 | |
Checking | 13,543 | 12,822 | |
Savings and other | 7,643 | 7,896 | |
Total interest-bearing deposits | 149,052 | 128,855 | |
Non-interest-bearing deposits | 578 | 647 | |
Total bank deposits | $ 149,630 | $ 129,502 | [1] |
[1] | Adjusted for the retrospective adoption of ASU 2015-03. See "Notes - 2. New Accounting Standards" for additional information. |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Unamortized debt discounts/premiums and debt issuance costs | $ 25,000,000 | $ 29,000,000 | |
Purchase of FHLB stock | 152,000,000 | ||
FHLB stock sold | 88,000,000 | $ 8,000,000 | |
Secured Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Funds drawn under LOC's | 3,000,000,000 | 0 | |
Line of credit facility, remaining borrowing capacity | 5,900,000,000 | ||
Commercial paper [Member] | |||
Debt Instrument [Line Items] | |||
Funds drawn under LOC's | 0 | $ 0 | |
Line of credit facility, maximum borrowing capacity | 1,500,000,000 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 750,000,000 | ||
Maximum [Member] | Commercial paper [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, expiration period | 270 days | ||
Schwab Bank [Member] | |||
Debt Instrument [Line Items] | |||
Purchase of FHLB stock | $ 152,000,000 | ||
FHLB stock sold | $ 88,000,000 | $ 8,000,000 |
Borrowings (Long-term Debt Incl
Borrowings (Long-term Debt Including Unamortized Debt Discounts and Premiums) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Borrowings [Abstract] | |||
Senior Notes | $ 2,556 | $ 2,553 | |
Senior Medium-Term Notes | 250 | 249 | |
Finance lease obligation | 70 | 75 | |
Total long-term debt | 2,876 | 2,877 | [1] |
Debt issuance costs | $ 11 | $ 13 | |
[1] | Adjusted for the retrospective adoption of ASU 2015-03. See "Notes - 2. New Accounting Standards" for additional information. |
Borrowings (Annual Maturities o
Borrowings (Annual Maturities on Long-term Debt Outstanding) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Borrowings [Abstract] | |||
2,016 | $ 2 | ||
2,017 | 258 | ||
2,018 | 908 | ||
2,019 | 8 | ||
2,020 | 709 | ||
Thereafter | 1,016 | ||
Total maturities | 2,901 | ||
Unamortized discount, net | (14) | ||
Debt issuance costs | (11) | $ (13) | |
Total long-term debt | $ 2,876 | $ 2,877 | [1] |
[1] | Adjusted for the retrospective adoption of ASU 2015-03. See "Notes - 2. New Accounting Standards" for additional information. |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Aug. 28, 2008 |
Standby letters of credit [Member] | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Aggregate face amount of letter of credit agreements | $ 295 | |
Performance Guarantee [Member] | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Liability for guarantees | 0 | |
Bond Market Fund Litigation [Member] | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Alleged minimum percentage of fund assets invested in CMOs and mortgage-backed securities without obtaining shareholder vote | 25.00% | |
Margin Requirements [Member] | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Funds drawn under LOC's | $ 0 |
Offsetting Assets and Liabili59
Offsetting Assets and Liabilities (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Resale And Repurchase Agreements [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Percentage of collateral to related assets | 102.00% | |
Fair value of Schwab's client securities that can be pledged | $ 9,600 | $ 8,200 |
Securities Financing Transaction, Fair Value [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Fair value of client securities pledged in securities lending transactions to other broker-dealers | 1,900 | 1,900 |
Fair value of borrowed securities from other broker-dealers to fulfill short sales by clients | $ 304 | $ 72 |
Offsetting Assets and Liabili60
Offsetting Assets and Liabilities (Offsetting Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Offsetting Assets and Liabilities [Abstract] | ||
Resale agreements, Gross Asset | $ 9,425 | $ 8,088 |
Resale agreements, Net Amounts Presented in the Consolidated Balance Sheet | 9,425 | 8,088 |
Resale agreements, Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral | (9,425) | (8,088) |
Resale agreements, Net Amount | 0 | 0 |
Securities borrowed, Gross Asset | 632 | 198 |
Securities borrowed, Net Amounts Presented in the Consolidated Balance Sheet | 632 | 198 |
Securities borrowed, Gross Amounts Not Offset in the Consolidated Balance Sheet, Counterparty Offsetting | (297) | (70) |
Securities borrowed, Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral | (334) | (127) |
Securities borrowed, Net Amount | 1 | 1 |
Total Gross Assets | 10,057 | 8,286 |
Total Assets, Net Amounts Presented in the Consolidated Balance Sheet | 10,057 | 8,286 |
Total Assets, Gross Amounts Not Offset in the Consolidated Balance Sheet, Counterparty Offsetting | (297) | (70) |
Total Assets, Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral | (9,759) | (8,215) |
Total Assets, Net Amount | $ 1 | $ 1 |
Offsetting Assets and Liabili61
Offsetting Assets and Liabilities (Offsetting Liabilities) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Offsetting Liabilities [Line Items] | ||
Securities loaned, Gross Liabilities | $ 2,371 | $ 2,233 |
Securities loaned, Net Amounts Presented in the Consolidated Balance Sheet | 2,371 | 2,233 |
Securities loaned, Gross Amounts Not Offset in the Consolidated Balance Sheet, Counterparty Offsetting | (297) | (70) |
Securities loaned, Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral | (1,961) | (1,990) |
Securities loaned, Net Amount | 113 | 173 |
Total Gross Liabilities | 2,371 | 2,233 |
Total Liabilities, Net Amounts Presented in the Consolidated Balance Sheet | 2,371 | 2,233 |
Total Liabilities, Gross Amounts Not Offset in the Consolidated Balance Sheet, Counterparty Offsetting | (297) | (70) |
Total Liabilities, Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral | (1,961) | (1,990) |
Total Liabilities, Net Amount | $ 113 | $ 173 |
Resale And Repurchase Agreements [Member] | ||
Offsetting Liabilities [Line Items] | ||
Percentage of collateral to related assets | 102.00% |
Fair Values of Assets and Lia62
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, 2016 | Dec. 31, 2015 | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other securities owned | $ 858 | $ 533 | [1] |
Securities available for sale | 75,791 | 65,646 | [1] |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 1,811 | 2,328 | |
Investments segregated and on deposit for regulatory purposes | 6,611 | 7,947 | |
Other securities owned | 858 | 533 | |
Securities available for sale | 75,791 | 65,646 | |
Total | 85,071 | 76,454 | |
Fair Value, Measurements, Recurring [Member] | Money market funds [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 852 | 1,968 | |
Fair Value, Measurements, Recurring [Member] | Commercial paper [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 959 | 360 | |
Securities available for sale | 214 | ||
Fair Value, Measurements, Recurring [Member] | Certificates of deposit [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments segregated and on deposit for regulatory purposes | 3,099 | 3,430 | |
Securities available for sale | 2,296 | 1,683 | |
Fair Value, Measurements, Recurring [Member] | U.S. Government securities [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments segregated and on deposit for regulatory purposes | 3,512 | 4,517 | |
Fair Value, Measurements, Recurring [Member] | Schwab Funds money market funds [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other securities owned | 528 | 261 | |
Fair Value, Measurements, Recurring [Member] | Equity and bond mutual funds [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other securities owned | 232 | 205 | |
Fair Value, Measurements, Recurring [Member] | State and municipal debt obligations [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other securities owned | 55 | 50 | |
Fair Value, Measurements, Recurring [Member] | Equity, U.S. Government and corporate debt, and other securities [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other securities owned | 43 | 17 | |
Fair Value, Measurements, Recurring [Member] | U.S. agency mortgage-backed securities [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 33,370 | 22,149 | |
Fair Value, Measurements, Recurring [Member] | Asset-backed securities [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 21,500 | 21,485 | |
Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 10,119 | 10,747 | |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury securities [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 4,999 | 5,704 | |
Fair Value, Measurements, Recurring [Member] | U.S. agency notes [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 2,205 | 3,150 | |
Fair Value, Measurements, Recurring [Member] | U.S. state and municipal securities [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 1,037 | 424 | |
Fair Value, Measurements, Recurring [Member] | Non-agency commercial mortgage-backed securities [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 51 | 299 | |
Fair Value, Measurements, Recurring [Member] | Other securities [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 5 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 852 | 1,968 | |
Other securities owned | 747 | 467 | |
Total | 1,599 | 2,435 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Money market funds [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 852 | 1,968 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Schwab Funds money market funds [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other securities owned | 528 | 261 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Equity and bond mutual funds [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other securities owned | 217 | 205 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Equity, U.S. Government and corporate debt, and other securities [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other securities owned | 2 | 1 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 959 | 360 | |
Investments segregated and on deposit for regulatory purposes | 6,611 | 7,947 | |
Other securities owned | 111 | 66 | |
Securities available for sale | 75,791 | 65,646 | |
Total | 83,472 | 74,019 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Commercial paper [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 959 | 360 | |
Securities available for sale | 214 | ||
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Certificates of deposit [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments segregated and on deposit for regulatory purposes | 3,099 | 3,430 | |
Securities available for sale | 2,296 | 1,683 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Government securities [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments segregated and on deposit for regulatory purposes | 3,512 | 4,517 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Equity and bond mutual funds [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other securities owned | 15 | ||
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | State and municipal debt obligations [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other securities owned | 55 | 50 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Equity, U.S. Government and corporate debt, and other securities [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other securities owned | 41 | 16 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. agency mortgage-backed securities [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 33,370 | 22,149 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Asset-backed securities [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 21,500 | 21,485 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 10,119 | 10,747 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Treasury securities [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 4,999 | 5,704 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. agency notes [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 2,205 | 3,150 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. state and municipal securities [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 1,037 | 424 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Non-agency commercial mortgage-backed securities [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | $ 51 | 299 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Other securities [Member] | Fair Value [Member] | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | $ 5 | ||
[1] | Adjusted for the retrospective adoption of ASU 2015-03. See "Notes - 2. New Accounting Standards" for additional information. |
Fair Values of Assets and Lia63
Fair Values of Assets and Liabilities (Fair Value of Other Financial Instruments) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Assets: | ||||||
Securities held to maturity | $ 67,843 | $ 50,088 | ||||
Liabilities: | ||||||
Allowance for loan losses | 26 | $ 31 | 31 | $ 31 | $ 36 | $ 42 |
Debt issuance costs | 11 | 13 | ||||
Residential real estate mortgages [Member] | ||||||
Liabilities: | ||||||
Allowance for loan losses | 15 | 20 | 20 | 20 | 23 | 29 |
Home equity loans and lines of credit [Member] | ||||||
Liabilities: | ||||||
Allowance for loan losses | 10 | 10 | 11 | $ 11 | $ 13 | $ 13 |
Other [Member] | ||||||
Liabilities: | ||||||
Allowance for loan losses | 1 | $ 1 | ||||
Carrying Amount, Portion at Other than Fair Value Measurement [Member] | ||||||
Assets: | ||||||
Cash and cash equivalents | 8,620 | 9,650 | ||||
Cash and investments segregated and on deposit for regulatory purposes | 13,461 | 11,647 | ||||
Receivables from brokers, dealers, and clearing organizations | 947 | 582 | ||||
Receivables from brokerage clients - net | 16,377 | 17,310 | ||||
Securities held to maturity | 66,056 | 50,007 | ||||
Bank loans | 14,884 | 14,365 | ||||
Other assets | 291 | 184 | ||||
Total | 120,636 | 103,745 | ||||
Liabilities: | ||||||
Bank deposits | 149,630 | 129,502 | ||||
Payables to brokers, dealers, and clearing organizations | 3,497 | 2,588 | ||||
Payables to brokerage clients. | 32,961 | 33,185 | ||||
Accrued expenses and other liabilities | 880 | 1,115 | ||||
Short-term borrowings | 3,001 | |||||
Long-term debt | 2,876 | 2,877 | ||||
Total | 192,845 | 169,267 | ||||
Carrying Amount, Portion at Other than Fair Value Measurement [Member] | Residential real estate mortgages [Member] | ||||||
Assets: | ||||||
Bank loans | 8,687 | 8,334 | ||||
Carrying Amount, Portion at Other than Fair Value Measurement [Member] | Home equity loans and lines of credit [Member] | ||||||
Assets: | ||||||
Bank loans | 2,472 | 2,735 | ||||
Carrying Amount, Portion at Other than Fair Value Measurement [Member] | Pledged asset lines [Member] | ||||||
Assets: | ||||||
Bank loans | 3,646 | 3,232 | ||||
Carrying Amount, Portion at Other than Fair Value Measurement [Member] | U.S. agency mortgage-backed securities [Member] | ||||||
Assets: | ||||||
Securities held to maturity | 64,836 | 48,785 | ||||
Carrying Amount, Portion at Other than Fair Value Measurement [Member] | Non-agency commercial mortgage-backed securities [Member] | ||||||
Assets: | ||||||
Securities held to maturity | 997 | 999 | ||||
Carrying Amount, Portion at Other than Fair Value Measurement [Member] | U.S. Treasury securities [Member] | ||||||
Assets: | ||||||
Securities held to maturity | 223 | 223 | ||||
Carrying Amount, Portion at Other than Fair Value Measurement [Member] | Other securities [Member] | Other [Member] | ||||||
Assets: | ||||||
Bank loans | 79 | 64 | ||||
Portion at Other than Fair Value Measurement [Member] | ||||||
Assets: | ||||||
Cash and cash equivalents | 8,620 | 9,650 | ||||
Cash and investments segregated and on deposit for regulatory purposes | 13,461 | 11,647 | ||||
Receivables from brokers, dealers, and clearing organizations | 947 | 582 | ||||
Receivables from brokerage clients - net | 16,377 | 17,310 | ||||
Securities held to maturity | 67,843 | 50,088 | ||||
Bank loans | 15,136 | 14,500 | ||||
Other assets | 291 | 184 | ||||
Total | 122,675 | 103,961 | ||||
Liabilities: | ||||||
Bank deposits | 149,630 | 129,502 | ||||
Payables to brokers, dealers, and clearing organizations | 3,497 | 2,588 | ||||
Payables to brokerage clients. | 32,961 | 33,185 | ||||
Accrued expenses and other liabilities | 880 | 1,115 | ||||
Short-term borrowings | 3,001 | |||||
Long-term debt | 3,024 | 2,967 | ||||
Total | 192,993 | 169,357 | ||||
Portion at Other than Fair Value Measurement [Member] | Residential real estate mortgages [Member] | ||||||
Assets: | ||||||
Bank loans | 8,797 | 8,347 | ||||
Portion at Other than Fair Value Measurement [Member] | Home equity loans and lines of credit [Member] | ||||||
Assets: | ||||||
Bank loans | 2,614 | 2,857 | ||||
Portion at Other than Fair Value Measurement [Member] | Pledged asset lines [Member] | ||||||
Assets: | ||||||
Bank loans | 3,646 | 3,232 | ||||
Portion at Other than Fair Value Measurement [Member] | U.S. agency mortgage-backed securities [Member] | ||||||
Assets: | ||||||
Securities held to maturity | 66,570 | 48,883 | ||||
Portion at Other than Fair Value Measurement [Member] | Non-agency commercial mortgage-backed securities [Member] | ||||||
Assets: | ||||||
Securities held to maturity | 1,040 | 985 | ||||
Portion at Other than Fair Value Measurement [Member] | U.S. Treasury securities [Member] | ||||||
Assets: | ||||||
Securities held to maturity | 233 | 220 | ||||
Portion at Other than Fair Value Measurement [Member] | Other securities [Member] | Other [Member] | ||||||
Assets: | ||||||
Bank loans | 79 | 64 | ||||
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||||
Assets: | ||||||
Cash and cash equivalents | 8,620 | 9,650 | ||||
Cash and investments segregated and on deposit for regulatory purposes | 13,461 | 11,647 | ||||
Receivables from brokers, dealers, and clearing organizations | 947 | 582 | ||||
Receivables from brokerage clients - net | 16,377 | 17,310 | ||||
Securities held to maturity | 67,843 | 50,088 | ||||
Bank loans | 15,136 | 14,500 | ||||
Other assets | 291 | 184 | ||||
Total | 122,675 | 103,961 | ||||
Liabilities: | ||||||
Bank deposits | 149,630 | 129,502 | ||||
Payables to brokers, dealers, and clearing organizations | 3,497 | 2,588 | ||||
Payables to brokerage clients. | 32,961 | 33,185 | ||||
Accrued expenses and other liabilities | 880 | 1,115 | ||||
Short-term borrowings | 3,001 | |||||
Long-term debt | 3,024 | 2,967 | ||||
Total | 192,993 | 169,357 | ||||
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Residential real estate mortgages [Member] | ||||||
Assets: | ||||||
Bank loans | 8,797 | 8,347 | ||||
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Home equity loans and lines of credit [Member] | ||||||
Assets: | ||||||
Bank loans | 2,614 | 2,857 | ||||
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Pledged asset lines [Member] | ||||||
Assets: | ||||||
Bank loans | 3,646 | 3,232 | ||||
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. agency mortgage-backed securities [Member] | ||||||
Assets: | ||||||
Securities held to maturity | 66,570 | 48,883 | ||||
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Non-agency commercial mortgage-backed securities [Member] | ||||||
Assets: | ||||||
Securities held to maturity | 1,040 | 985 | ||||
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury securities [Member] | ||||||
Assets: | ||||||
Securities held to maturity | 233 | 220 | ||||
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other securities [Member] | Other [Member] | ||||||
Assets: | ||||||
Bank loans | $ 79 | $ 64 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - $ / shares | Mar. 07, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Class of Stock [Line Items] | |||
Preferred stock, par value | $ 0.01 | $ 0.01 | |
Series D Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Depositary shares issued | 30,000,000 | ||
Depositary shares preferred stock ownership interest (per share) | 2.50% | ||
Fixed dividend rate on preferred stock | 5.95% | ||
Preferred stock, par value | $ 0.01 | ||
Preferred stock liquidation preference (per share) | 1,000 | $ 1,000 | |
Depositary share, liquidation preference equivalent (per share) | $ 25 | ||
Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Shares issued | 0 | 0 | |
Series A Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock liquidation preference (per share) | $ 1,000 | $ 1,000 | |
Series B Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock liquidation preference (per share) | 1,000 | 1,000 | |
Series C Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock liquidation preference (per share) | $ 1,000 | $ 1,000 |
Stockholders' Equity (Preferred
Stockholders' Equity (Preferred Stock Issued and Outstanding) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Sep. 30, 2016 | Mar. 07, 2016 | Dec. 31, 2015 | |
Class of Stock [Line Items] | ||||
Shares Issued and Outstanding | 2,235 | 1,485 | ||
Liquidation Preference | $ 2,235 | $ 1,485 | ||
Carrying Value | $ 2,192 | $ 1,459 | [1] | |
Series A Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Shares Issued and Outstanding | 400 | 400 | ||
Preferred stock liquidation preference (per share) | $ 1,000 | $ 1,000 | ||
Liquidation Preference | $ 400 | $ 400 | ||
Carrying Value | $ 397 | $ 396 | ||
Series B Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Shares Issued and Outstanding | 485 | 485 | ||
Preferred stock liquidation preference (per share) | $ 1,000 | $ 1,000 | ||
Liquidation Preference | $ 485 | $ 485 | ||
Carrying Value | $ 483 | $ 480 | ||
Series C Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Shares Issued and Outstanding | 600 | 600 | ||
Preferred stock liquidation preference (per share) | $ 1,000 | $ 1,000 | ||
Liquidation Preference | $ 600 | $ 600 | ||
Carrying Value | $ 585 | $ 583 | ||
Series D Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Shares Issued and Outstanding | 750 | |||
Preferred stock liquidation preference (per share) | $ 1,000 | $ 1,000 | ||
Liquidation Preference | $ 750 | |||
Carrying Value | $ 727 | |||
[1] | Adjusted for the retrospective adoption of ASU 2015-03. See "Notes - 2. New Accounting Standards" for additional information. |
Accumulated Other Comprehensi66
Accumulated Other Comprehensive Income (Components of Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Change in net unrealized gain (loss) on securities available for sale: | ||||
Net unrealized gain (loss) | $ 77 | $ (249) | $ 266 | $ (233) |
Other reclassifications included in other revenue | (3) | |||
Change in net unrealized gain (loss) on securities available for sale | 77 | (249) | 263 | (233) |
Other | 1 | |||
Other comprehensive income (loss), before tax | 77 | (249) | 264 | (233) |
Change in net unrealized gain (loss) on securities available for sale: | ||||
Net unrealized gain (loss) | (29) | 94 | (100) | 87 |
Other reclassifications included in other revenue | 1 | |||
Change in net unrealized gain on securities available for sale | (29) | 94 | (99) | 87 |
Other | ||||
Other comprehensive (loss) income, tax effect | (29) | 94 | (99) | 87 |
Change in net unrealized gain on securities available for sale: | ||||
Net unrealized gain (loss) | 48 | (155) | 166 | (146) |
Other reclassifications included in other revenue | (2) | |||
Change in net unrealized gain on securities available for sale | 48 | (155) | 164 | (146) |
Other | 1 | |||
Other comprehensive income (loss), net of tax | $ 48 | $ (155) | $ 165 | $ (146) |
Accumulated Other Comprehensi67
Accumulated Other Comprehensive Income (Accumulated Other Comprehensive Income Balances) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Accumulated Other Comprehensive Income [Line Items] | |||||
Beginning Balance | $ (134) | [1] | $ 165 | ||
Other net changes | $ 48 | $ (155) | 165 | (146) | |
Ending Balance | $ 31 | $ 19 | 31 | 19 | |
Net Unrealized Gain On Securities Available For Sale [Member] | |||||
Accumulated Other Comprehensive Income [Line Items] | |||||
Other net changes | 164 | $ (146) | |||
Other [Member] | |||||
Accumulated Other Comprehensive Income [Line Items] | |||||
Other net changes | $ 1 | ||||
[1] | Adjusted for the retrospective adoption of ASU 2015-03. See "Notes - 2. New Accounting Standards" for additional information. |
Earnings Per Common Share (EPS
Earnings Per Common Share (EPS under Basic and Diluted Computations) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Earnings Per Common Share [Abstract] | |||||
Net income | $ 503 | $ 376 | $ 1,367 | $ 1,031 | |
Preferred stock dividends and other | [1] | (33) | (11) | (99) | (45) |
Net income available to common stockholders | $ 470 | $ 365 | $ 1,268 | $ 986 | |
Weighted Average Common Shares Outstanding - Basic | 1,324 | 1,316 | 1,322 | 1,315 | |
Common stock equivalent shares related to stock incentive plans | 10 | 12 | 10 | 11 | |
Weighted-average common shares outstanding — diluted | 1,334 | 1,328 | 1,332 | 1,326 | |
Basic EPS | $ 0.36 | $ 0.28 | $ 0.96 | $ 0.75 | |
Diluted EPS | $ 0.35 | $ 0.28 | $ 0.95 | $ 0.74 | |
Antidilutive stock options and restricted stock awards excluded from the calculation of diluted EPS | 17 | 14 | 21 | 16 | |
[1] | Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested restricted stock units. |
Regulatory Requirements (Narrat
Regulatory Requirements (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2016 | Jan. 31, 2019 | Jan. 01, 2016 | Dec. 31, 2015 | |
Compliance with Regulatory Capital Requirements for Broker Dealers [Line Items] | ||||
Required capital conservation buffer of risk-weighted assets | 0.625% | |||
Capital convservation buffer of risk-weighted assets annual increase | 0.625% | |||
Percentage of aggregate debit balances required as minimum net capital | 2.00% | |||
Net capital under the alternative method permitted by the Uniform Net Capital Rule | This method requires the maintenance of minimum net capital, as defined, of the greater of 2% of aggregate debit balances arising from client transactions or a minimum dollar requirement ($250,000), which is based on the type of business conducted by the broker-dealer. Under the alternative method, a broker-dealer may not repay subordinated borrowings, pay cash dividends, or make any unsecured advances or loans to its parent company or employees if such payment would result in a net capital amount of less than 5% of aggregate debit balances or less than 120% of its minimum dollar requirement. | |||
Percentage of net capital to aggregate debit balances required for a broker-dealer to repay subordinated borrowings, pay cash dividends, or make any unsecured advances or loans to its parent company or employees | 5.00% | |||
Percentage of net capital to the Company's minimum dollar requirement required for a broker-dealer to repay subordinated borrowings, pay cash dividends, or make any unsecured advances or loans to its parent company or employees | 120.00% | |||
Description of Net Capital Requirements under Commodity Exchange Act | optionsXpress, Inc. is also subject to Commodity Futures Trading Commission Regulation 1.17 (Reg. 1.17) under the Commodity Exchange Act, which also requires the maintenance of minimum net capital. optionsXpress, Inc., as a futures commission merchant, is required to maintain minimum net capital equal to the greater of its net capital requirement under Reg. 1.17 ($1 million), or the sum of 8% of the total risk margin requirements for all positions carried in client accounts and 8% of the total risk margin requirements for all positions carried in non-client accounts (as defined in Reg. 1.17). | |||
Net capital required for optionsXpress, Inc. under Reg 1.17 of the Commodity Exchange Act | $ 1,000 | |||
Minimum percentage of the total risk margin requirements for all positions carried in customer accounts to be added to the minimum percentage of the total risk margin requirements for all positions carried in non-customer accounts for optionsXpress, Inc. minimum net capital calculation | 8.00% | |||
Minimum percentage of the total risk margin requirements for all positions carried in non-customer accounts to be added to the minimum percentage of the total risk margin requirements for all positions carried in customer accounts for optionsXpress, Inc. minimum net capital calculation | 8.00% | |||
Scenario, Forecast [Member] | ||||
Compliance with Regulatory Capital Requirements for Broker Dealers [Line Items] | ||||
Required capital conservation buffer of risk-weighted assets | 2.50% | |||
Schwab [Member] | ||||
Compliance with Regulatory Capital Requirements for Broker Dealers [Line Items] | ||||
Minimum capital requirement | $ 250 | $ 250 |
Regulatory Requirements (Regula
Regulatory Requirements (Regulatory Capital and Ratios) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
CSC [Member] | ||
Common Equity Tier 1 Risk-Based Capital | ||
Actual Amount | $ 12,015 | $ 10,851 |
Minimum Capital Requirement | $ 3,006 | $ 2,681 |
Actual Ratio | 18.00% | 18.20% |
Minimum Capital Requirement Ratio | 4.50% | 4.50% |
Tier 1 Risk-Based Capital | ||
Actual Amount | $ 14,207 | $ 12,310 |
Minimum Capital Requirement Amount | $ 4,008 | $ 3,575 |
Actual Ratio | 21.30% | 20.70% |
Minimum Capital Requirement Ratio | 6.00% | 6.00% |
Total Risk-Based Capital | ||
Actual Amount | $ 14,234 | $ 12,342 |
Minimum Capital Requirement Amount | $ 5,343 | $ 4,766 |
Actual Ratio | 21.30% | 20.70% |
Minimum Capital Requirement Ratio | 8.00% | 8.00% |
Tier 1 Leverage | ||
Actual Amount | $ 14,207 | $ 12,310 |
Minimum Capital Requirement Amount | $ 7,996 | $ 6,912 |
Actual Ratio | 7.10% | 7.10% |
Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Schwab Bank [Member] | ||
Common Equity Tier 1 Risk-Based Capital | ||
Actual Amount | $ 11,142 | $ 9,314 |
Minimum to be Well Capitalized | 3,843 | 3,349 |
Minimum Capital Requirement | $ 2,660 | $ 2,318 |
Actual Ratio | 18.80% | 18.10% |
Minimum to be Well Capitalized Ratio | 6.50% | 6.50% |
Minimum Capital Requirement Ratio | 4.50% | 4.50% |
Tier 1 Risk-Based Capital | ||
Actual Amount | $ 11,142 | $ 9,314 |
Minimum to be Well Capitalized Amount | 4,730 | 4,121 |
Minimum Capital Requirement Amount | $ 3,547 | $ 3,091 |
Actual Ratio | 18.80% | 18.10% |
Minimum to be Well Capitalized Ratio | 8.00% | 8.00% |
Minimum Capital Requirement Ratio | 6.00% | 6.00% |
Total Risk-Based Capital | ||
Actual Amount | $ 11,168 | $ 9,345 |
Minimum to be Well Capitalized Amount | 5,912 | 5,152 |
Minimum Capital Requirement Amount | $ 4,730 | $ 4,121 |
Actual Ratio | 18.90% | 18.10% |
Minimum to be Well Capitalized Ratio | 10.00% | 10.00% |
Minimum Capital Requirement Ratio | 8.00% | 8.00% |
Tier 1 Leverage | ||
Actual Amount | $ 11,142 | $ 9,314 |
Minimum to be Well Capitalized Amount | 7,910 | 6,594 |
Minimum Capital Requirement Amount | $ 6,328 | $ 5,275 |
Actual Ratio | 7.00% | 7.10% |
Minimum to be Well Capitalized Ratio | 5.00% | 5.00% |
Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Regulatory Requirements (Net Ca
Regulatory Requirements (Net Capital and Net Capital Requirements for Schwab and optionsXpress, Inc) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schwab [Member] | ||
Compliance with Regulatory Capital Requirements for Broker Dealers [Line Items] | ||
Net Capital | $ 1,890,000 | $ 1,746,000 |
Minimum Net Capital Required | 250 | 250 |
2% of Aggregate Debit Balances | 344,000 | 358,000 |
Net Capital in Excess of Required Net Capital | 1,546,000 | 1,388,000 |
OptionsXpress, Inc. [Member] | ||
Compliance with Regulatory Capital Requirements for Broker Dealers [Line Items] | ||
Net Capital | 269,000 | 244,000 |
Minimum Net Capital Required | 1,000 | 1,000 |
2% of Aggregate Debit Balances | 7,000 | 7,000 |
Net Capital in Excess of Required Net Capital | $ 262,000 | $ 237,000 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2016segment | |
Segment Information [Abstract] | |
Number of reportable segments | 2 |
Segment Information (Financial
Segment Information (Financial Information for Reportable Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Net Revenues: | |||||
Asset management and administration fees | [1] | $ 798 | $ 663 | $ 2,254 | $ 1,977 |
Net interest revenue | 845 | 635 | 2,415 | 1,835 | |
Trading revenue | 190 | 228 | 623 | 658 | |
Other | 76 | 66 | 209 | 208 | |
Provision for loan losses | 5 | 5 | 5 | 11 | |
Total net revenues | 1,914 | 1,597 | 5,506 | 4,689 | |
Expenses Excluding Interest | 1,120 | 1,014 | 3,337 | 3,055 | |
Income before taxes on income | 794 | 583 | 2,169 | 1,634 | |
Investor Services [Member] | |||||
Net Revenues: | |||||
Asset management and administration fees | 550 | 461 | 1,536 | 1,372 | |
Net interest revenue | 654 | 534 | 1,895 | 1,568 | |
Trading revenue | 123 | 148 | 395 | 428 | |
Other | 56 | 45 | 153 | 146 | |
Provision for loan losses | 4 | 4 | 4 | 10 | |
Total net revenues | 1,387 | 1,192 | 3,983 | 3,524 | |
Expenses Excluding Interest | 847 | 762 | 2,518 | 2,308 | |
Income before taxes on income | 540 | 430 | 1,465 | 1,216 | |
Advisor Services [Member] | |||||
Net Revenues: | |||||
Asset management and administration fees | 248 | 202 | 718 | 605 | |
Net interest revenue | 191 | 101 | 520 | 267 | |
Trading revenue | 67 | 80 | 228 | 230 | |
Other | 20 | 21 | 56 | 62 | |
Provision for loan losses | 1 | 1 | 1 | 1 | |
Total net revenues | 527 | 405 | 1,523 | 1,165 | |
Expenses Excluding Interest | 273 | 252 | 819 | 747 | |
Income before taxes on income | $ 254 | $ 153 | $ 704 | $ 418 | |
[1] | Includes fee waivers of $41 and $166 during the third quarters of 2016 and 2015, respectively and $193 and $519 during the first nine months of 2016 and 2015, respectively, relating to Schwab-sponsored money market funds. |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 |
Subsequent Event [Line Items] | ||||
Preferred stock, par value | $ 0.01 | $ 0.01 | ||
Net proceeds from issuance of preferred stock offerings | $ 725 | $ 581 | ||
Subsequent Event [Member] | Series E Preferred Stock [Member] | ||||
Subsequent Event [Line Items] | ||||
Preferred stock dividend rate | 4.625% | |||
Preferred stock, par value | $ 0.01 | |||
Preferred stock liquidation preference (per share) | 100,000 | |||
Depositary share, liquidation preference equivalent (per share) | $ 1,000 | |||
Fixed dividend rate on preferred stock | 4.625% | |||
Net proceeds from issuance of preferred stock offerings | $ 591 | |||
Subsequent Event [Member] | LIBOR [Member] | Series E Preferred Stock [Member] | ||||
Subsequent Event [Line Items] | ||||
Floating rate on 3-month LIBOR plus | 3.315% | |||
Depositary Shares [Member] | Subsequent Event [Member] | Series E Preferred Stock [Member] | ||||
Subsequent Event [Line Items] | ||||
Shares issued | 600,000 | |||
Depositary shares preferred stock ownership interest (per share) | 1.00% |