Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 31, 2017 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
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 | 1,339,119,476 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Net Revenues: | |||||
Asset management and administration fees | [1] | $ 845 | $ 757 | $ 1,668 | $ 1,456 |
Interest revenue | 1,127 | 840 | 2,182 | 1,650 | |
Interest expense | (74) | (42) | (129) | (80) | |
Net interest revenue | 1,053 | 798 | 2,053 | 1,570 | |
Trading revenue | 157 | 201 | 349 | 433 | |
Other | 75 | 70 | 141 | 133 | |
Provision for loan losses | 0 | 2 | 0 | 0 | |
Total net revenues | 2,130 | 1,828 | 4,211 | 3,592 | |
Expenses Excluding Interest | |||||
Compensation and benefits | 663 | 602 | 1,364 | 1,228 | |
Professional services | 144 | 125 | 277 | 241 | |
Occupancy and equipment | 107 | 101 | 212 | 199 | |
Advertising and market development | 71 | 70 | 142 | 140 | |
Communications | 58 | 62 | 115 | 122 | |
Depreciation and amortization | 66 | 57 | 131 | 113 | |
Other | 112 | 91 | 218 | 174 | |
Total expenses excluding interest | 1,221 | 1,108 | 2,459 | 2,217 | |
Income before taxes on income | 909 | 720 | 1,752 | 1,375 | |
Taxes on income | [2] | 334 | 268 | 613 | 511 |
Net Income | 575 | 452 | 1,139 | 864 | |
Preferred stock dividends and other | [3] | 45 | 46 | 84 | 66 |
Net Income Available to Common Stockholders | $ 530 | $ 406 | $ 1,055 | $ 798 | |
Weighted-Average Common Shares Outstanding: | |||||
Basic (shares) | 1,338 | 1,322 | 1,337 | 1,322 | |
Diluted (shares) | [4] | 1,351 | 1,333 | 1,351 | 1,331 |
Earnings Per Common Share: | |||||
Basic (USD per share) | $ 0.40 | $ 0.31 | $ 0.79 | $ 0.60 | |
Diluted (USD per share) | 0.39 | 0.30 | 0.78 | 0.60 | |
Dividends Declared Per Common Share (USD per share) | $ 0.08 | $ 0.07 | $ 0.16 | $ 0.13 | |
Fee waivers | $ 1 | $ 55 | $ 9 | $ 152 | |
[1] | Includes the effect of fee waivers of $1 million and $55 million during the second quarters of 2017 and 2016, respectively, and $9 million and $152 million during the first halves of 2017 and 2016, respectively, relating to Schwab-sponsored money market funds. | ||||
[2] | Includes the prospective adoption of ASU 2016-09 in 2017. See New Accounting Standards in Note 2 for additional information. | ||||
[3] | Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested restricted stock units. | ||||
[4] | Antidilutive stock options and restricted stock awards excluded from the calculation of diluted EPS totaled 9 million and 19 million shares for the second quarters of 2017 and 2016, respectively, and 10 million and 22 million shares for the first halves of 2017 and 2016, respectively. |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 575 | $ 452 | $ 1,139 | $ 864 |
Change in net unrealized gain (loss) on available for sale securities: | ||||
Net unrealized gain (loss) | 29 | 168 | 81 | 189 |
Reclassification of net unrealized loss transferred to held to maturity | 0 | 0 | 227 | 0 |
Other reclassifications included in other revenue | (6) | (3) | (7) | (3) |
Change in net unrealized gain (loss) on held to maturity securities: | ||||
Reclassification of net unrealized loss transferred from available for sale | 0 | 0 | (227) | 0 |
Amortization of amounts previously recorded upon transfer from available for sale | 9 | 0 | 11 | 0 |
Other | 0 | 0 | (3) | 1 |
Other comprehensive income (loss), before tax | 32 | 165 | 82 | 187 |
Income tax effect | (12) | (62) | (31) | (70) |
Other comprehensive income (loss), net of tax | 20 | 103 | 51 | 117 |
Comprehensive Income | $ 595 | $ 555 | $ 1,190 | $ 981 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 9,575 | $ 10,828 |
Cash and investments segregated and on deposit for regulatory purposes (including resale agreements of $7,588 at June 30, 2017 and $9,547 at December, 31, 2016) | 18,483 | 22,174 |
Receivables from brokers, dealers, and clearing organizations | 910 | 728 |
Receivables from brokerage clients — net | 17,993 | 17,155 |
Other securities owned — at fair value | 460 | 449 |
Available for sale securities | 45,634 | 77,365 |
Held to maturity securities (fair value — $107,446 at June 30, 2017 and $74,444 at December 31, 2016) | 107,610 | 75,203 |
Bank loans — net | 15,817 | 15,403 |
Equipment, office facilities, and property — net | 1,335 | 1,299 |
Goodwill | 1,227 | 1,227 |
Intangible assets — net | 125 | 144 |
Other assets | 1,432 | 1,408 |
Total assets | 220,601 | 223,383 |
Liabilities and Stockholders’ Equity | ||
Bank deposits | 162,300 | 163,454 |
Payables to brokers, dealers, and clearing organizations | 1,934 | 2,407 |
Payables to brokerage clients | 33,039 | 35,894 |
Accrued expenses and other liabilities | 2,021 | 2,331 |
Short-term borrowings | 300 | 0 |
Long-term debt | 3,518 | 2,876 |
Total liabilities | 203,112 | 206,962 |
Stockholders’ equity: | ||
Preferred stock — $.01 par value per share; aggregate liquidation preference of $2,835 at June 30, 2017 and December 31, 2016 | 2,783 | 2,783 |
Common stock — 3 billion shares authorized; $.01 par value per share; 1,487,543,446 shares issued | 15 | 15 |
Additional paid-in capital | 4,336 | 4,267 |
Retained earnings | 13,495 | 12,649 |
Treasury stock, at cost — 149,339,521 shares at June 30, 2017 and 154,793,560 shares at December 31, 2016 | (3,028) | (3,130) |
Accumulated other comprehensive income (loss) | (112) | (163) |
Total stockholders’ equity | 17,489 | 16,421 |
Total liabilities and stockholders’ equity | $ 220,601 | $ 223,383 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Cash and investments segregated and on deposit for regulatory purposes, resale agreements | $ 7,588 | $ 9,547 |
Held to maturity securities | $ 107,446 | $ 74,444 |
Preferred stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, aggregate liquidation preference (shares) | $ 2,835 | $ 2,835 |
Common stock, shares authorized (shares) | 3,000,000,000 | 3,000,000,000 |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (shares) | 1,487,543,446 | 1,487,543,446 |
Treasury stock (shares) | 149,339,521 | 154,793,560 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Stockholders' Equity Statement - USD ($) shares in Millions, $ in Millions | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock, at cost [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning balance at Dec. 31, 2015 | $ 13,402 | $ 1,459 | $ 15 | $ 4,152 | $ 11,253 | $ (3,343) | $ (134) |
Beginning balance (shares) at Dec. 31, 2015 | 1,488 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 864 | 864 | |||||
Other comprehensive income (loss), net of tax | 117 | 117 | |||||
Issuance of preferred stock | 730 | 730 | |||||
Dividends declared on preferred stock | (57) | (57) | |||||
Dividends declared on common stock | (173) | (173) | |||||
Stock option exercises and other | 19 | (14) | 33 | ||||
Share-based compensation and related tax effects | 76 | 76 | |||||
Other | 12 | 9 | (5) | 8 | |||
Ending balance (shares) at Jun. 30, 2016 | 1,488 | ||||||
Ending balance at Jun. 30, 2016 | 14,990 | 2,189 | $ 15 | 4,223 | 11,882 | (3,302) | (17) |
Beginning balance at Dec. 31, 2016 | 16,421 | 2,783 | $ 15 | 4,267 | 12,649 | (3,130) | (163) |
Beginning balance (shares) at Dec. 31, 2016 | 1,488 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 1,139 | 1,139 | |||||
Other comprehensive income (loss), net of tax | 51 | 51 | |||||
Dividends declared on preferred stock | (78) | (78) | |||||
Dividends declared on common stock | (215) | (215) | |||||
Stock option exercises and other | 72 | (26) | 98 | ||||
Share-based compensation and related tax effects | 79 | 79 | |||||
Other | 20 | 16 | 4 | ||||
Ending balance (shares) at Jun. 30, 2017 | 1,488 | ||||||
Ending balance at Jun. 30, 2017 | $ 17,489 | $ 2,783 | $ 15 | $ 4,336 | $ 13,495 | $ (3,028) | $ (112) |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash Flows from Operating Activities | ||
Net income | $ 1,139 | $ 864 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||
Provision for loan losses | 0 | 0 |
Share-based compensation | 84 | 75 |
Depreciation and amortization | 131 | 113 |
Premium amortization, net, on available for sale securities and held to maturity securities | 148 | 107 |
Other | 19 | 17 |
Net change in: | ||
Cash and investments segregated and on deposit for regulatory purposes | 3,691 | 1,005 |
Receivables from brokers, dealers, and clearing organizations | (180) | (431) |
Receivables from brokerage clients | (841) | 486 |
Other securities owned | (11) | 8 |
Other assets | (50) | (37) |
Payables to brokers, dealers, and clearing organizations | (473) | 153 |
Payables to brokerage clients | (2,855) | (506) |
Accrued expenses and other liabilities | (293) | (331) |
Net cash provided by (used for) operating activities | 509 | 1,523 |
Cash Flows from Investing Activities | ||
Purchases of available for sale securities | (3,077) | (16,598) |
Proceeds from sales of available for sale securities | 5,485 | 4,074 |
Principal payments on available for sale securities | 4,698 | 4,763 |
Purchases of held to maturity securities | (12,309) | (7,582) |
Principal payments on held to maturity securities | 4,469 | 2,198 |
Net increase in bank loans | (418) | (362) |
Purchases of equipment, office facilities, and property | (164) | (195) |
Purchases of Federal Home Loan Bank stock | (87) | (118) |
Proceeds from sales of Federal Home Loan Bank stock | 100 | 0 |
Other investing activities | (14) | (14) |
Net cash used for investing activities | (1,317) | (13,834) |
Cash Flows from Financing Activities | ||
Net change in bank deposits | (1,154) | 7,793 |
Net proceeds from short-term borrowings | 300 | 5,000 |
Issuance of long-term debt | 643 | 0 |
Repayment of long-term debt | (4) | (3) |
Net proceeds from preferred stock offering | 0 | 725 |
Dividends paid | (293) | (230) |
Proceeds from stock options exercised and other | 71 | 19 |
Other financing activities | (8) | 5 |
Net cash provided by financing activities | (445) | 13,309 |
Increase (Decrease) in Cash and Cash Equivalents | (1,253) | 998 |
Cash and Cash Equivalents at Beginning of Period | 10,828 | 11,978 |
Cash and Cash Equivalents at End of Period | 9,575 | 12,976 |
Cash paid during the period for: | ||
Interest | 117 | 74 |
Income taxes | 597 | 505 |
Non-cash investing activity: | ||
Securities purchased during the period but settled after period end | $ 0 | $ 651 |
Introduction and Basis of Prese
Introduction and Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Introduction and Basis of Presentation | Introduction and Basis of Presentation CSC is a savings and loan holding company engaged, through its subsidiaries, in wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. Schwab is a securities broker-dealer with over 340 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 investment securities, valuation of goodwill, allowance for loan losses, legal and regulatory reserves, and income taxes. 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 2016 Form 10-K. The Company’s significant accounting policies are included in Note 2 in the 2016 Form 10-K. There have been no significant changes to these accounting policies during the first six months of 2017 except as described in Note 2 below. 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 Note 5 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 | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | New Accounting Standards Adoption of New Accounting Standards On January 1, 2017, the Company adopted, on a prospective basis, ASU 2016-09, “Stock Compensation – Improvements to Employee Share-Based Payment Accounting (Topic 718)”, which requires entities to recognize the income tax effects for the difference between generally accepted accounting principles (GAAP) and federal income tax treatment (i.e., excess tax benefit or deficiency) 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. As a result, the Company’s tax expense was reduced by approximately $5 million and $ 36 million in the second quarter and first half of 2017 , respectively. Future effects will depend on the Company’s share price, restricted stock vesting, and the volume of equity incentive options exercised. For the purpose of recognizing compensation cost associated with share-based awards, ASU 2016-09 also provides entities with an accounting policy election to account for forfeitures of awards as they occur or continue with current practice of estimating forfeitures at the grant date to determine the number of awards expected to vest and adjusting that estimate as necessary. The Company has elected to continue to follow the current practice. 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 FASB has subsequently issued several amendments to the standard, including deferral of the effective date until January 1, 2018, clarification of principal versus agent considerations, narrow scope improvements and other technical corrections. 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 plans to adopt the revenue recognition guidance in the first quarter of 2018 using the modified retrospective method with a cumulative effect adjustment to opening retained earnings. The guidance does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other U.S. GAAP. Accordingly, the Company does not expect an impact to net interest revenue. The Company believes that the primary areas of potential impact of the guidance for the Company are (1) the impact on the income statement of the capitalization of costs to obtain a contract and (2) the presentation of certain revenue streams in the income statement (i.e., gross versus net reporting). With respect to the capitalization of costs to obtain a contract, the Company believes adoption of the standard will likely alter the timing, measurement and recognition of those costs in the income statement; however, the Company does not expect the impact to be material. The American Institute of Certified Public Accountants has formed sixteen industry task forces to help assess industry specific implementation issues. Preliminary conclusions reached by the Company may be impacted by the finalized task-force papers, which have yet to be released. The next phase of the Company’s implementation work will be to evaluate any changes that may be required to the Company’s applicable disclosures. While the total revenue may be impacted by the adoption of the guidance, net income will not be affected. 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 alternative 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 liabilities by measurement category and form of instrument on the balance sheet or in the accompanying notes. The Company does not expect the adoption of ASU 2016-01 will have a material impact 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 right-of-use 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 adoption of ASU 2016-02 will result in the Company recognizing a right-of-use asset and lease liability on the consolidated balance sheet based on the present value of remaining operating lease payments (see Note 14 of the Company’s 2016 Form 10-K for the undiscounted future annual minimum rental commitments for operating leases). The Company does not expect the adoption of ASU 2016-02 will have a material impact on its 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 HTM debt securities. The new guidance will require estimating expected credit losses (CECL) over the remaining life of an instrument or a portfolio of instruments with similar risk characteristics based on relevant information about past events, current conditions, and reasonable forecasts. The initial estimate of, and the subsequent changes in, CECL will be recognized as credit loss expense through current earnings and will be reflected as an allowance for credit losses offsetting the carrying value of the financial instrument(s) on the balance sheet. The new guidance also amends the OTTI model for AFS debt securities by requiring the use of an allowance, rather than directly reducing the carrying value of the security, and eliminating consideration of the length of time such security has been in an unrealized loss position as a factor in concluding whether a credit loss exists. 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 AFS 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. In March 2017, the FASB issued ASU 2017-08, “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities”, which shortens the amortization period for the premium on certain callable debt securities to the earliest call date. The amendments are applicable to any purchased individual debt security with an explicit and noncontingent call feature that is callable at a fixed price on a preset date. The amendments do not impact the accounting for callable debt securities held at a discount, which will continue to be accreted to maturity. ASU 2017-08 will become effective on January 1, 2019, with early adoption permitted including adoption in an interim period. The amendments will be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The Company is currently evaluating the impact of adopting ASU 2017-08 on its financial statements and EPS. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The amortized cost, gross unrealized gains and losses, and fair value of AFS and HTM securities are as follows: June 30, 2017 Amortized Cost Gross Unrealized Gains Gross Fair Value Available for sale securities: U.S. agency mortgage-backed securities $ 17,604 $ 56 $ 27 $ 17,633 Asset-backed securities 9,858 40 4 9,894 Corporate debt securities 6,603 23 1 6,625 U.S. Treasury securities 7,740 8 51 7,697 Certificates of deposit 1,620 2 — 1,622 U.S. agency notes 1,914 — 7 1,907 Commercial paper 214 — — 214 Non-agency commercial mortgage-backed securities 42 — — 42 Total available for sale securities $ 45,595 $ 129 $ 90 $ 45,634 Held to maturity securities: U.S. agency mortgage-backed securities $ 89,250 $ 499 $ 805 $ 88,944 Non-agency commercial mortgage-backed securities 995 12 3 1,004 Asset-backed securities 12,493 70 2 12,561 Corporate debt securities 3,181 23 — 3,204 U.S. Treasury securities 223 — 1 222 Commercial paper 100 — — 100 U.S. state and municipal securities 1,168 43 — 1,211 Certificates of deposit 200 — — 200 Total held to maturity securities $ 107,610 $ 647 $ 811 $ 107,446 December 31, 2016 Available for sale securities: U.S. agency mortgage-backed securities $ 33,167 $ 120 $ 92 $ 33,195 Asset-backed securities 20,520 29 214 20,335 Corporate debt securities 9,850 20 18 9,852 U.S. Treasury securities 8,679 3 59 8,623 Certificates of deposit 2,070 2 1 2,071 U.S. agency notes 1,915 — 8 1,907 U.S. state and municipal securities 1,167 2 46 1,123 Commercial paper 214 — — 214 Non-agency commercial mortgage-backed securities 45 — — 45 Total available for sale securities $ 77,627 $ 176 $ 438 $ 77,365 Held to maturity securities: U.S. agency mortgage-backed securities $ 72,439 $ 324 $ 1,086 $ 71,677 Non-agency commercial mortgage-backed securities 997 11 4 1,004 Asset-backed securities 941 — — 941 Corporate debt securities 436 — — 436 U.S. Treasury securities 223 — 4 219 Commercial paper 99 — — 99 U.S. state and municipal securities 68 1 1 68 Total held to maturity securities $ 75,203 $ 336 $ 1,095 $ 74,444 The increase in the HTM portfolio at June 30, 2017 compared to December 31, 2016 was primarily attributable to the transfer of $24.7 billion of investment securities from the AFS category to the HTM category during the first quarter of 2017 . These securities had a total net unrealized loss of $227 million before income tax in AOCI on the date of transfer. The transfer was made to mitigate the potential volatility in regulatory capital from changes in market values in the AFS securities portfolio and the related impact to AOCI once the Company crosses $250 billion in consolidated assets. The year after the Company surpasses $250 billion in consolidated assets, it can no longer exclude AOCI from regulatory capital. The transfer included U.S. agency mortgage-backed securities, asset-backed securities, corporate debt securities, and U.S. state and municipal securities. The unrealized holding gains and losses on the date of transfer are reported as a separate component of AOCI and as an adjustment to the purchase premium and discount on the securities transferred. The separate component of AOCI will be amortized or accreted into interest income over the remaining life of the securities transferred, offsetting the revised premium or discount amortization or accretion on the transferred assets . Schwab Bank pledges securities issued by federal agencies to secure certain trust deposits. The fair value of these pledged securities was $967 million at June 30, 2017 . 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 June 30, 2017 Fair Unrealized Losses Fair Unrealized Fair Unrealized Available for sale securities: U.S. agency mortgage-backed securities $ 1,817 $ 6 $ 2,976 $ 21 $ 4,793 $ 27 Asset-backed securities 866 — 550 4 1,416 4 Corporate debt securities 867 1 303 — 1,170 1 U.S. Treasury securities 6,418 51 — — 6,418 51 U.S. agency notes 1,907 7 — — 1,907 7 Total $ 11,875 $ 65 $ 3,829 $ 25 $ 15,704 $ 90 Held to maturity securities: U.S. agency mortgage-backed securities $ 174 $ — $ 48,699 $ 805 $ 48,873 $ 805 Non-agency commercial mortgage-backed securities — — 535 3 535 3 Asset-backed securities 945 1 779 1 1,724 2 U.S. Treasury securities — — 222 1 222 1 Total $ 1,119 $ 1 $ 50,235 $ 810 $ 51,354 $ 811 Total securities with unrealized losses (1) $ 12,994 $ 66 $ 54,064 $ 835 $ 67,058 $ 901 December 31, 2016 Available for sale securities: U.S. agency mortgage-backed securities $ 14,816 $ 69 $ 2,931 $ 23 $ 17,747 $ 92 Asset-backed securities 1,670 13 9,237 201 10,907 214 Corporate debt securities 2,407 17 653 1 3,060 18 U.S. Treasury securities 6,926 59 — — 6,926 59 Certificates of deposit 474 — 100 1 574 1 U.S. agency notes 1,907 8 — — 1,907 8 U.S. state and municipal securities 956 46 — — 956 46 Total $ 29,156 $ 212 $ 12,921 $ 226 $ 42,077 $ 438 Held to maturity securities: U.S. agency mortgage-backed securities $ 51,361 $ 1,086 $ — $ — $ 51,361 $ 1,086 Non-agency commercial mortgage-backed securities 591 4 — — 591 4 U.S. Treasury securities 219 4 — — 219 4 U.S. state and municipal securities 14 1 — — 14 1 Total $ 52,185 $ 1,095 $ — $ — $ 52,185 $ 1,095 Total securities with unrealized losses (2) $ 81,341 $ 1,307 $ 12,921 $ 226 $ 94,262 $ 1,533 (1) The number of investment positions with unrealized losses totaled 205 for AFS securities and 625 for HTM securities. (2) The number of investment positions with unrealized losses totaled 627 for AFS securities and 612 for HTM securities. At June 30, 2017 , substantially all securities in the investment portfolios were rated investment grade. U.S. agency mortgage-backed securities do not have explicit credit ratings; however, management considers these to be of the highest credit quality and rating given the guarantee of principal and interest by the U.S. government-sponsored enterprises. Management evaluates whether investment securities are OTTI on a quarterly basis as described in Note 2 in the 2016 Form 10-K. The maturities of AFS and HTM securities are as follows: June 30, 2017 Within 1 year After 1 year through 5 years After 5 years through 10 years After 10 years Total Available for sale securities: U.S. agency mortgage-backed securities (1) $ 108 $ 1,884 $ 6,306 $ 9,335 $ 17,633 Asset-backed securities 23 8,019 1,126 726 9,894 Corporate debt securities 2,851 3,774 — — 6,625 U.S. Treasury securities 1,619 6,078 — — 7,697 Certificates of deposit 951 671 — — 1,622 U.S. agency notes 847 1,060 — — 1,907 Commercial paper 214 — — — 214 Non-agency commercial mortgage-backed securities (1) — — — 42 42 Total fair value $ 6,613 $ 21,486 $ 7,432 $ 10,103 $ 45,634 Total amortized cost $ 6,612 $ 21,476 $ 7,427 $ 10,080 $ 45,595 Held to maturity securities: U.S. agency mortgage-backed securities (1) $ — $ 9,695 $ 30,224 $ 49,025 $ 88,944 Non-agency commercial mortgage-backed securities (1) — — 363 641 1,004 Asset-backed securities — 1,019 5,395 6,147 12,561 Corporate debt securities — 3,204 — — 3,204 U.S. Treasury securities — — 222 — 222 Commercial paper 100 — — — 100 U.S. state and municipal securities — — 88 1,123 1,211 Certificates of deposit — 200 — — 200 Total fair value $ 100 $ 14,118 $ 36,292 $ 56,936 $ 107,446 Total amortized cost $ 100 $ 13,939 $ 36,222 $ 57,349 $ 107,610 (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 AFS securities are as follows: Three Months Ended Six Months Ended 2017 2016 2017 2016 Proceeds $ 4,421 $ 3,774 $ 5,485 $ 4,074 Gross realized gains 6 3 7 3 |
Bank Loans and Related Allowanc
Bank Loans and Related Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Bank Loans and Related Allowance for Loan Losses | Bank Loans and Related Allowance for Loan Losses The composition of bank loans and delinquency analysis by loan type is as follows: June 30, 2017 Current 30-59 days past due 60-89 days past due >90 days past due and other nonaccrual loans Total past due and other nonaccrual loans Total loans Allowance for loan losses Total bank loans - net Residential real estate mortgages $ 9,549 $ 14 $ 1 $ 17 $ 32 $ 9,581 $ 17 $ 9,564 Home equity loans and lines of credit 2,137 1 1 9 11 2,148 8 2,140 Pledged asset lines 4,000 1 — — 1 4,001 — 4,001 Other 113 — — — — 113 1 112 Total bank loans $ 15,799 $ 16 $ 2 $ 26 $ 44 $ 15,843 $ 26 $ 15,817 December 31, 2016 Residential real estate mortgages $ 9,100 $ 15 $ 3 $ 16 $ 34 $ 9,134 $ 17 $ 9,117 Home equity loans and lines of credit 2,336 2 2 10 14 2,350 8 2,342 Pledged asset lines 3,846 4 1 — 5 3,851 — 3,851 Other 94 — — — — 94 1 93 Total bank loans $ 15,376 $ 21 $ 6 $ 26 $ 53 $ 15,429 $ 26 $ 15,403 Residential real estate mortgages (First Mortgages) and home equity loans and lines of credit (HELOCs) include unamortized premiums and discounts and direct origination costs of $77 million and $78 million at June 30, 2017 and December 31, 2016 , respectively. The Company had commitments to extend credit related to unused HELOCs, pledged asset lines (PALs), and other lines of credit, which totaled $9.2 billion and $8.4 billion at June 30, 2017 and December 31, 2016 , respectively. The Company had commitments to purchase First Mortgage loans of $457 million and $466 million at June 30, 2017 and December 31, 2016 , respectively. All PALs were fully collateralized by securities with fair values in excess of borrowings at June 30, 2017 and December 31, 2016 . 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 $683 million and $691 million during the second quarters of 2017 and 2016 , respectively, and $1.3 billion and $1.2 billion during the first halves of 2017 and 2016, respectively. Schwab Bank purchased HELOCs with commitments of $111 million and $112 million during the second quarters of 2017 and 2016 , respectively, and $229 million and $222 million during the first halves of 2017 and 2016 , respectively. Credit Quality Changes in the allowance for loan losses were as follows: Three Months Ended June 30, 2017 June 30, 2016 Residential Home equity Other Total Residential Home equity Other Total Balance at beginning of period $ 17 $ 8 $ 1 $ 26 $ 21 $ 11 $ 1 $ 33 Charge-offs (1 ) (1 ) — (2 ) — — — — Recoveries 1 1 — 2 — — — — Provision for loan losses — — — — (1 ) (1 ) — (2 ) Balance at end of period $ 17 $ 8 $ 1 $ 26 $ 20 $ 10 $ 1 $ 31 Six Months Ended June 30, 2017 June 30, 2016 Residential Home equity Other Total Residential Home equity Other Total Balance at beginning of period $ 17 $ 8 $ 1 $ 26 $ 20 $ 11 $ — $ 31 Charge-offs (1 ) (1 ) — (2 ) (1 ) — — (1 ) Recoveries 1 1 — 2 1 — — 1 Provision for loan losses — — — — — (1 ) 1 — Balance at end of period $ 17 $ 8 $ 1 $ 26 $ 20 $ 10 $ 1 $ 31 Substantially all of the bank loans were collectively evaluated for impairment at June 30, 2017 and December 31, 2016 . There were no loans accruing interest that were contractually 90 days or more past due at June 30, 2017 or December 31, 2016 . Nonperforming assets, which include nonaccrual loans and other real estate owned, totaled $30 million and $31 million at June 30, 2017 and December 31, 2016 , respectively. Impaired assets, which include nonaccrual loans, other real estate owned and troubled debt restructurings, totaled $41 million and $45 million at June 30, 2017 and December 31, 2016 , respectively. Troubled debt restructurings were not material at June 30, 2017 or December 31, 2016 . In addition to monitoring delinquency, the Company monitors the credit quality of First Mortgages and HELOCs by stratifying the portfolios by the following: • Year of origination; • Borrower FICO scores at origination (Origination FICO); • Updated borrower FICO scores (Updated FICO); • Loan-to-value ratios at origination (Origination LTV); and • Estimated current LTV ratios (Estimated Current LTV). Borrowers’ FICO scores are provided by an independent third-party credit reporting service and were last updated in June 2017. 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 June 30, 2017 and December 31, 2016 , 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: June 30, 2017 Balance Weighted Average Utilization (1) Percent of Residential real estate mortgages: Estimated Current LTV < 70% $ 8,648 775 N/A 0.03 % >70% – < 90% 898 768 N/A 0.30 % >90% – < 100% 16 740 N/A 2.93 % >100% 19 698 N/A 17.07 % Total $ 9,581 774 N/A 0.09 % Home equity loans and lines of credit: Estimated Current LTV (2) < 70% $ 1,893 772 33 % 0.10 % >70% – < 90% 216 759 49 % 0.19 % >90% – < 100% 23 743 65 % 0.98 % >100% 16 730 73 % 8.87 % Total $ 2,148 770 35 % 0.19 % Pledged asset lines: Weighted-Average LTV (2) =70% $ 4,001 767 43 % — (1) The Utilization Rate is calculated using the outstanding balance divided by the associated total line of credit. (2) Represents the LTV for the full line of credit (drawn and undrawn). N/A Not applicable. June 30, 2017 Residential Home equity Year of origination Pre-2013 $ 1,808 $ 1,553 2013 1,534 169 2014 599 137 2015 1,351 140 2016 3,037 104 2017 1,252 45 Total $ 9,581 $ 2,148 Origination FICO <620 $ 7 $ — 620 – 679 85 11 680 – 739 1,491 396 > 740 7,998 1,741 Total $ 9,581 $ 2,148 Origination LTV < 70% $ 7,237 $ 1,491 >70% – < 90% 2,336 646 >90% – < 100% 8 11 Total $ 9,581 $ 2,148 December 31, 2016 Balance Weighted Average Utilization (1) Percent of Residential real estate mortgages: Estimated Current LTV < 70% $ 8,350 774 N/A 0.04 % >70% – < 90% 743 768 N/A 0.35 % >90% – < 100% 21 747 N/A 2.08 % >100% 20 709 N/A 14.50 % Total $ 9,134 773 N/A 0.10 % Home equity loans and lines of credit: Estimated Current LTV (2) < 70% $ 2,070 771 35 % 0.12 % >70% – < 90% 234 757 50 % 0.40 % >90% – < 100% 29 747 66 % 1.74 % >100% 17 728 70 % 3.73 % Total $ 2,350 769 36 % 0.20 % Pledged asset lines: Weighted-Average LTV (2) =70% $ 3,851 763 46 % — (1) The Utilization Rate is calculated using the outstanding balance divided by the associated total line of credit. (2) Represents the LTV for the full line of credit (drawn and undrawn). N/A Not applicable. December 31, 2016 Residential Home equity Year of origination Pre-2013 $ 2,136 $ 1,765 2013 1,746 193 2014 685 152 2015 1,458 146 2016 3,109 94 Total $ 9,134 $ 2,350 Origination FICO <620 $ 8 $ — 620 – 679 92 13 680 – 739 1,427 432 > 740 7,607 1,905 Total $ 9,134 $ 2,350 Origination LTV < 70% $ 6,865 $ 1,628 >70% – < 90% 2,260 709 >90% – < 100% 9 13 Total $ 9,134 $ 2,350 The Company’s bank loans include $8.6 billion of adjustable rate First Mortgage loans at June 30, 2017 . The Company’s adjustable rate mortgages have initial fixed interest rates for three to ten years and interest rates that adjust annually thereafter. Approximately 34% of these mortgages consisted of loans with interest-only payment terms. The interest rates on approximately 56% of these interest-only loans are not scheduled to reset for three or more years. The Company’s mortgage loans do not include interest terms described as temporary introductory rates below current market rates. The Company’s HELOC product has a 30 -year loan term with an initial draw period of ten years from the date of origination. After the initial draw period, the balance outstanding at such time is converted to a 20 -year amortizing loan. The interest rate during the initial draw period and the 20 -year amortizing period is a floating rate based on the prime rate plus a margin. HELOCs that convert to an amortizing loan may experience higher delinquencies and higher loss rates than those in the initial draw period. The Company’s allowance for loan loss methodology takes this increased inherent risk into consideration. The following table presents when current outstanding HELOCs will convert to amortizing loans: June 30, 2017 Balance Converted to an amortizing loan by period end $ 454 Within 1 year 316 > 1 year – 3 years 566 > 3 years – 5 years 158 > 5 years 654 Total $ 2,148 At June 30, 2017 , $1.7 billion of the HELOC portfolio was secured by second liens on the associated properties. Second lien mortgage loans typically possess a higher degree of credit risk given the subordination to the first lien holder in the event of default. In addition to the credit monitoring activities described previously, the Company also monitors credit risk by reviewing the delinquency status of the first lien loan on the associated property. At June 30, 2017 , approximately 38% of the HELOC borrowers that had a balance only paid the minimum amount of interest due. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2017 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | 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 Principles of Consolidation in Note 1 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 June 30, 2017 and December 31, 2016 . As of June 30, 2017 and December 31, 2016 , the majority of the Company’s VIEs related to Schwab Bank’s Low-Income Housing Tax Credit (LIHTC) investments. Schwab Bank’s 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 in the condensed consolidated statements of income. For further information on the Community Reinvestment Act (CRA) and Schwab Bank’s LIHTC investments, see Note 2 and Note 10 in the 2016 Form 10-K. The carrying value of the LIHTC investments was $213 million and $189 million as of June 30, 2017 and December 31, 2016 , respectively, which is included in other assets on the condensed consolidated balance sheets. Schwab Bank recorded liabilities of $145 million and $135 million for unfunded commitments related to LIHTC investments at June 30, 2017 and December 31, 2016 , 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 2017 and 2020 . 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: June 30, 2017 December 31, 2016 Aggregate Aggregate Maximum Aggregate Aggregate Maximum LIHTC investments $ 213 $ 145 $ 213 $ 189 $ 135 $ 189 Other CRA investments (1) 63 — 83 60 — 80 Total $ 276 $ 145 $ 296 $ 249 $ 135 $ 269 (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 six months ended June 30, 2017 and 2016 , 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 | 6 Months Ended |
Jun. 30, 2017 | |
Banking and Thrift [Abstract] | |
Bank Deposits | Bank Deposits Bank deposits consist of interest-bearing and non-interest-bearing deposits as follows: June 30, 2017 December 31, 2016 Interest-bearing deposits: Deposits swept from brokerage accounts $ 140,725 $ 141,146 Checking 13,504 13,842 Savings and other 7,495 7,792 Total interest-bearing deposits 161,724 162,780 Non-interest-bearing deposits 576 674 Total bank deposits $ 162,300 $ 163,454 |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Long-term debt was net of unamortized debt discounts/premiums and debt issuance costs of $27 million and $24 million at June 30, 2017 and December 31, 2016 , respectively. June 30, 2017 December 31, 2016 Senior Notes $ 3,204 $ 2,558 Medium-Term Notes 250 250 Finance lease obligation 64 68 Total long-term debt $ 3,518 $ 2,876 On March 2, 2017 , CSC issued $650 million aggregate principal amount of Senior Notes that mature in 2027 . The Senior Notes have a fixed interest rate of 3.200% with interest payable semi-annually. The Company’s long-term debt at June 30, 2017 had a weighted-average interest rate of 3.34% . Annual maturities on long-term debt outstanding at June 30, 2017 are as follows: 2017 $ 254 2018 908 2019 8 2020 709 2021 9 Thereafter 1,657 Total maturities 3,545 Unamortized discount, net (13 ) Debt issuance costs (14 ) Total long-term debt $ 3,518 Short-term borrowings: Schwab Bank maintains a secured credit facility with the Federal Home Loan Bank of San Francisco (FHLB). Amounts available under this facility are dependent on the amount of Schwab Bank’s First Mortgages, HELOCs, and the fair value of certain of Schwab Bank’s investment securities that are pledged as collateral. As a condition of the borrowings, Schwab Bank is required to hold FHLB stock, with the investment recorded in other assets on the condensed consolidated balance sheets. The investment in FHLB was $68 million at June 30, 2017 and $81 million at December 31, 2016 . No funds were drawn under this facility as of June 30, 2017 and December 31, 2016 . 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 June 30, 2017 . CSC had no Commercial Paper Notes outstanding at June 30, 2017 and December 31, 2016 . CSC and Schwab also have access to uncommitted, unsecured bank credit lines with several banks. Schwab had $300 million outstanding under these lines at June 30, 2017 and there were no borrowings outstanding under these lines at December 31, 2016 . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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 letter of credit agreements (LOCs), in favor of the Options Clearing Corporation, which are issued by several banks. At June 30, 2017 , the aggregate face amount of these LOCs totaled $295 million . There were no funds drawn under any of these LOCs at June 30, 2017 . 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 collateral. The potential requirement for the Company to make payments under these arrangements is remote. Accordingly, no liability has been recognized for these guarantees. Legal contingencies: 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. Predicting the outcome of a litigation or regulatory matter is inherently difficult, requiring significant judgment and evaluation of various factors, including the procedural status of the matter and any recent developments; prior experience and the experience of others in similar cases; available defenses, including potential opportunities to dispose of a case on the merits or procedural grounds before trial (e.g., motions to dismiss or for summary judgment); the progress of fact discovery; the opinions of counsel and experts regarding potential damages; 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 alleged violations of state law and federal securities law in connection with the fund’s investment policy, named 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 fundholder vote. Plaintiff seeks 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. |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 6 Months Ended |
Jun. 30, 2017 | |
Offsetting [Abstract] | |
Offsetting Assets and Liabilities | 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 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. 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 and clearing houses in connection with its securities lending activities and receives cash as collateral for the securities loaned. Increases in security prices may cause the fair value of the securities loaned to exceed the amount of cash received as collateral. In the event the counterparty to these transactions does not return the loaned securities or provide additional cash collateral, 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 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 $426 million at June 30, 2017 and $213 million at December 31, 2016 . 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 June 30, 2017 and December 31, 2016 . Gross Amounts Not Offset in the Gross Gross Amounts Net Amounts Counterparty Collateral Net June 30, 2017 Assets: Resale agreements (1) $ 7,588 $ — $ 7,588 $ — $ (7,588 ) (2) $ — Securities borrowed (3) 584 — 584 (345 ) (237 ) 2 Total $ 8,172 $ — $ 8,172 $ (345 ) $ (7,825 ) $ 2 Liabilities: Securities loaned (4,5) $ 1,684 $ — $ 1,684 $ (345 ) $ (1,210 ) $ 129 Total $ 1,684 $ — $ 1,684 $ (345 ) $ (1,210 ) $ 129 December 31, 2016 Assets: Resale agreements (1) $ 9,547 $ — $ 9,547 $ — $ (9,547 ) (2) $ — Securities borrowed (3) 393 — 393 (200 ) (189 ) 4 Total $ 9,940 $ — $ 9,940 $ (200 ) $ (9,736 ) $ 4 Liabilities: Securities loaned (4,5) $ 1,996 $ — $ 1,996 $ (200 ) $ (1,660 ) $ 136 Total $ 1,996 $ — $ 1,996 $ (200 ) $ (1,660 ) $ 136 (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. At June 30, 2017 and December 31, 2016 , the fair value of collateral received in connection with resale agreements that are available to be repledged or sold was $7.7 billion and $9.8 billion , respectively. (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. Margin lending: Clients with margin loans have agreed to allow the Company to pledge collateralized securities in their brokerage accounts in accordance with federal regulations. The following table summarizes the fair value of client securities available, under such regulations, for the Company to utilize as collateral, and the amounts pledged by the Company: June 30, 2017 December 31, 2016 Fair value of client securities available to be pledged $ 23,023 $ 21,516 Fair value of client securities pledged for: Securities lending to other broker-dealers 1,295 1,626 Fulfillment of client short sales 2,225 2,048 Fulfillment of requirements with the Options Clearing Corporation (1) 1,969 1,519 Total collateral pledged $ 5,489 $ 5,193 Note: Excludes amounts available and pledged for securities lending from fully-paid client securities. The fair value of fully-paid client securities available and pledged was $104 million as of June 30, 2017 and $58 million as of December 31, 2016 . (1) Client securities pledged to fulfill client margin requirements for open option contracts established with the Options Clearing Corporation. |
Fair Values of Assets and Liabi
Fair Values of Assets and Liabilities | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Assets and Liabilities | Fair Values of Assets and Liabilities Assets and liabilities measured at fair value on a recurring basis 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 AFS securities. The Company uses the market approach to determine the fair value of assets and liabilities. When available, the Company uses quoted prices in active markets to measure the fair value of assets and liabilities. When utilizing market data and bid-ask spread, the Company uses the price within the bid-ask spread that best represents fair value. When quoted prices do not exist, the Company uses prices obtained from independent third-party pricing services to measure the fair value of investment assets. 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. • HTM securities – The fair values of HTM securities 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, borrowings on Schwab’s uncommitted, unsecured bank credit lines, 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 Note 2 in the 2016 Form 10-K. There were no significant changes in these policies and methodologies during the first six months of 2017 . The Company did not transfer any assets or liabilities between Level 1, Level 2, or Level 3 during the six months ended June 30, 2017 , or the year ended December 31, 2016 . In addition, the Company did not adjust prices received from the primary independent third-party pricing service at June 30, 2017 or December 31, 2016 . 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: June 30, 2017 Quoted Prices Significant Significant Balance at Cash equivalents: Money market funds $ 1,670 $ — $ — $ 1,670 Total cash equivalents 1,670 — — 1,670 Investments segregated and on deposit for regulatory purposes: Certificates of deposit — 2,026 — 2,026 U.S. Government securities — 5,256 — 5,256 Total investments segregated and on deposit for regulatory purposes — 7,282 — 7,282 Other securities owned: Equity and bond mutual funds 300 — — 300 Schwab Funds ® money market funds 78 — — 78 State and municipal debt obligations — 41 — 41 Equity, U.S. Government and corporate debt, and 2 39 — 41 Total other securities owned 380 80 — 460 Available for sale securities: U.S. agency mortgage-backed securities — 17,633 — 17,633 Asset-backed securities — 9,894 — 9,894 Corporate debt securities — 6,625 — 6,625 U.S. Treasury securities — 7,697 — 7,697 Certificates of deposit — 1,622 — 1,622 U.S. agency notes — 1,907 — 1,907 Commercial paper — 214 — 214 Non-agency commercial mortgage-backed securities — 42 — 42 Total available for sale securities — 45,634 — 45,634 Total $ 2,050 $ 52,996 $ — $ 55,046 December 31, 2016 Quoted Prices Significant Significant Balance at Cash equivalents: Money market funds $ 1,514 $ — $ — $ 1,514 Total cash equivalents 1,514 — — 1,514 Investments segregated and on deposit for regulatory purposes: Certificates of deposit — 2,525 — 2,525 U.S. Government securities — 6,111 — 6,111 Total investments segregated and on deposit for regulatory purposes — 8,636 — 8,636 Other securities owned: Equity and bond mutual funds 272 — — 272 Schwab Funds ® money market funds 108 — — 108 State and municipal debt obligations — 41 — 41 Equity, U.S. Government and corporate debt, and 2 26 — 28 Total other securities owned 382 67 — 449 Available for sale securities: U.S. agency mortgage-backed securities — 33,195 — 33,195 Asset-backed securities — 20,335 — 20,335 Corporate debt securities — 9,852 — 9,852 U.S. Treasury securities — 8,623 — 8,623 Certificates of deposit — 2,071 — 2,071 U.S. agency notes — 1,907 — 1,907 U.S. state and municipal securities — 1,123 — 1,123 Commercial paper — 214 — 214 Non-agency commercial mortgage-backed securities — 45 — 45 Total available for sale securities — 77,365 — 77,365 Total $ 1,896 $ 86,068 $ — $ 87,964 Fair Value of Other Financial Instruments The following tables present the fair value hierarchy for other financial instruments: June 30, 2017 Carrying Quoted Prices Significant Significant Balance at Assets: Cash and cash equivalents $ 7,905 $ — $ 7,905 $ — $ 7,905 Cash and investments segregated and on deposit for regulatory purposes 11,196 — 11,196 — 11,196 Receivables from brokers, dealers, and clearing organizations 910 — 910 — 910 Receivables from brokerage clients – net 17,990 — 17,990 — 17,990 Held to maturity securities: U.S. agency mortgage-backed securities 89,250 — 88,944 — 88,944 Non-agency commercial mortgage-backed securities 995 — 1,004 — 1,004 Asset-backed securities 12,493 — 12,561 — 12,561 Corporate debt securities 3,181 — 3,204 — 3,204 U.S. Treasury securities 223 — 222 — 222 Commercial paper 100 — 100 — 100 U.S. state and municipal securities 1,168 — 1,211 — 1,211 Certificates of deposit 200 — 200 — 200 Total held to maturity securities 107,610 — 107,446 — 107,446 Bank loans – net: Residential real estate mortgages 9,564 — 9,541 — 9,541 Home equity loans and lines of credit 2,140 — 2,249 — 2,249 Pledged asset lines 4,001 — 4,001 — 4,001 Other 112 — 112 — 112 Total bank loans – net 15,817 — 15,903 — 15,903 Other assets 337 — 337 — 337 Total $ 161,765 $ — $ 161,687 $ — $ 161,687 Liabilities: Bank deposits $ 162,300 $ — $ 162,300 $ — $ 162,300 Payables to brokers, dealers, and clearing organizations 1,934 — 1,934 — 1,934 Payables to brokerage clients 33,039 — 33,039 — 33,039 Accrued expenses and other liabilities 911 — 911 — 911 Short-term borrowings 300 — 300 — 300 Long-term debt 3,518 — 3,591 — 3,591 Total $ 202,002 $ — $ 202,075 $ — $ 202,075 December 31, 2016 Carrying Quoted Prices Significant Significant Balance at Assets: Cash and cash equivalents $ 9,314 $ — $ 9,314 $ — $ 9,314 Cash and investments segregated and on deposit for regulatory purposes 13,533 — 13,533 — 13,533 Receivables from brokers, dealers, and clearing organizations 728 — 728 — 728 Receivables from brokerage clients – net 17,151 — 17,151 — 17,151 Held to maturity securities: U.S. agency mortgage-backed securities 72,439 — 71,677 — 71,677 Non-agency commercial mortgage-backed securities 997 — 1,004 — 1,004 Asset-backed securities 941 — 941 — 941 Corporate debt securities 436 — 436 — 436 U.S. Treasury securities 223 — 219 — 219 Commercial paper 99 — 99 — 99 U.S. state and municipal securities 68 — 68 — 68 Total held to maturity securities 75,203 — 74,444 — 74,444 Bank loans – net: Residential real estate mortgages 9,117 — 9,064 — 9,064 Home equity loans and lines of credit 2,342 — 2,458 — 2,458 Pledged asset lines 3,851 — 3,851 — 3,851 Other 93 — 94 — 94 Total bank loans – net 15,403 — 15,467 — 15,467 Other assets 328 — 328 — 328 Total $ 131,660 $ — $ 130,965 $ — $ 130,965 Liabilities: Bank deposits $ 163,454 $ — $ 163,454 $ — $ 163,454 Payables to brokers, dealers, and clearing organizations 2,407 — 2,407 — 2,407 Payables to brokerage clients 35,894 — 35,894 — 35,894 Accrued expenses and other liabilities 1,169 — 1,169 — 1,169 Long-term debt 2,876 — 2,941 — 2,941 Total $ 205,800 $ — $ 205,865 $ — $ 205,865 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity The Company’s preferred stock issued and outstanding is as follows: June 30, 2017 December 31, 2016 Shares Liquidation Liquidation Carrying Shares Liquidation Liquidation Carrying Series A 400 $ 1,000 $ 400 $ 397 400 $ 1,000 $ 400 $ 397 Series B 485 1,000 485 482 485 1,000 485 482 Series C 600 1,000 600 585 600 1,000 600 585 Series D 750 1,000 750 728 750 1,000 750 728 Series E 6 100,000 600 591 6 100,000 600 591 Total Preferred Stock 2,241 $ 2,835 $ 2,783 2,241 $ 2,835 $ 2,783 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | 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 June 30, 2017 2016 Before Tax Net of Before Tax Net of Change in net unrealized gain (loss) on available for sale securities: Net unrealized gain (loss) $ 29 $ (11 ) $ 18 $ 168 $ (63 ) $ 105 Other reclassifications included in other revenue (6 ) 3 (3 ) (3 ) 1 (2 ) Change in net unrealized gain (loss) on held to maturity securities: Amortization of amounts previously recorded upon transfer from available for sale 9 (4 ) 5 — — — Other comprehensive income (loss) $ 32 $ (12 ) $ 20 $ 165 $ (62 ) $ 103 Six Months Ended June 30, 2017 2016 Before Tax Net of Before Tax Net of Change in net unrealized gain (loss) on available for sale securities: Net unrealized gain (loss) $ 81 $ (30 ) $ 51 $ 189 $ (71 ) $ 118 Reclassification of net unrealized loss on securities transferred to held to maturity (1) 227 (85 ) 142 — — — Other reclassifications included in other revenue (7 ) 3 (4 ) (3 ) 1 (2 ) Change in net unrealized gain (loss) on held to maturity securities: Reclassification of net unrealized loss on securities transferred from available for sale (1) (227 ) 85 (142 ) — — — Amortization of amounts previously recorded upon transfer from available for sale 11 (5 ) 6 — — — Other (3 ) 1 (2 ) 1 — 1 Other comprehensive income (loss) $ 82 $ (31 ) $ 51 $ 187 $ (70 ) $ 117 (1) See Note 3 for discussion of the transfer of securities from the AFS category to the HTM category during the first quarter of 2017. Accumulated other comprehensive income balances are as follows: Total Balance at December 31, 2015 $ (134 ) Net unrealized gain (loss) on available for sale securities 116 Other 1 Balance at June 30, 2016 $ (17 ) Balance at December 31, 2016 $ (163 ) Available for sale securities: Net unrealized gain (loss) 51 Reclassification of net unrealized loss on securities transferred to held to maturity 142 Other reclassifications included in other revenue (4 ) Held to maturity securities: Reclassification of net unrealized loss on securities transferred from available for sale (142 ) Amortization of amounts previously recorded upon transfer to held to maturity from available for sale 6 Other (2 ) Balance at June 30, 2017 $ (112 ) |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share EPS under the basic and diluted computations is as follows: Three Months Ended Six Months Ended 2017 2016 2017 2016 Net income $ 575 $ 452 $ 1,139 $ 864 Preferred stock dividends and other (1) (45 ) (46 ) (84 ) (66 ) Net income available to common stockholders $ 530 $ 406 $ 1,055 $ 798 Weighted-average common shares outstanding — basic 1,338 1,322 1,337 1,322 Common stock equivalent shares related to stock incentive plans 13 11 14 9 Weighted-average common shares outstanding — diluted (2) 1,351 1,333 1,351 1,331 Basic EPS $ .40 $ .31 $ .79 $ .60 Diluted EPS $ .39 $ .30 $ .78 $ .60 (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 9 million and 19 million shares for the second quarters of 2017 and 2016 , respectively, and 10 million and 22 million shares for the first halves of 2017 and 2016, respectively. |
Regulatory Requirements
Regulatory Requirements | 6 Months Ended |
Jun. 30, 2017 | |
Banking and Thrift [Abstract] | |
Regulatory Requirements | Regulatory Requirements At June 30, 2017 , 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: Actual Minimum to be Minimum Capital Requirement June 30, 2017 Amount Ratio Amount Ratio Amount Ratio CSC Common Equity Tier 1 Risk-Based Capital $ 13,589 19.5 % N/A $ 3,133 4.5 % Tier 1 Risk-Based Capital 16,372 23.5 % N/A 4,177 6.0 % Total Risk-Based Capital 16,400 23.6 % N/A 5,570 8.0 % Tier 1 Leverage 16,372 7.4 % N/A 8,843 4.0 % Schwab Bank Common Equity Tier 1 Risk-Based Capital $ 12,987 21.0 % $ 4,015 6.5 % $ 2,779 4.5 % Tier 1 Risk-Based Capital 12,987 21.0 % 4,941 8.0 % 3,706 6.0 % Total Risk-Based Capital 13,014 21.1 % 6,176 10.0 % 4,941 8.0 % Tier 1 Leverage 12,987 7.3 % 8,934 5.0 % 7,148 4.0 % December 31, 2016 CSC Common Equity Tier 1 Risk-Based Capital $ 12,574 18.4 % N/A $ 3,068 4.5 % Tier 1 Risk-Based Capital 15,357 22.5 % N/A 4,091 6.0 % Total Risk-Based Capital 15,384 22.6 % N/A 5,454 8.0 % Tier 1 Leverage 15,357 7.2 % N/A 8,516 4.0 % Schwab Bank Common Equity Tier 1 Risk-Based Capital $ 11,878 19.8 % $ 3,894 6.5 % $ 2,696 4.5 % Tier 1 Risk-Based Capital 11,878 19.8 % 4,793 8.0 % 3,595 6.0 % Total Risk-Based Capital 11,904 19.9 % 5,992 10.0 % 4,793 8.0 % Tier 1 Leverage 11,878 7.0 % 8,456 5.0 % 6,765 4.0 % N/A Not applicable. Based on its regulatory capital ratios at June 30, 2017 , Schwab Bank is considered well capitalized (the highest category) under its respective regulatory capital rules. There are no conditions or events since June 30, 2017 that management believes have changed Schwab Bank’s capital category. At June 30, 2017 , both CSC’s and Schwab Bank’s capital levels exceeded the fully implemented capital conservation buffer requirement. Net capital and net capital requirements for Schwab and optionsXpress are as follows: June 30, 2017 Net Capital Minimum Net Capital Required 2% of Aggregate Debit Balances Net Capital in Excess of Required Capital Schwab $ 1,951 $ 0.250 $ 385 $ 1,566 optionsXpress 290 1 7 283 December 31, 2016 Schwab $ 1,846 $ 0.250 $ 355 $ 1,491 optionsXpress 269 1 8 261 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | 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, banking, and support services as well as retirement business services. Revenues and expenses are allocated to the Company’s two segments based on which segment services the client. Management 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: Investor Services Advisor Services Total Three Months Ended June 30, 2017 2016 2017 2016 2017 2016 Net Revenues: Asset management and administration fees $ 582 $ 514 $ 263 $ 243 $ 845 $ 757 Net interest revenue 795 628 258 170 1,053 798 Trading revenue 98 129 59 72 157 201 Other 55 51 20 19 75 70 Provision for loan losses — 2 — — — 2 Total net revenues 1,530 1,324 600 504 2,130 1,828 Expenses Excluding Interest 914 834 307 274 1,221 1,108 Income before taxes on income $ 616 $ 490 $ 293 $ 230 $ 909 $ 720 Investor Services Advisor Services Total Six Months Ended June 30, 2017 2016 2017 2016 2017 2016 Net Revenues: Asset management and administration fees $ 1,148 $ 986 $ 520 $ 470 $ 1,668 $ 1,456 Net interest revenue 1,548 1,241 505 329 2,053 1,570 Trading revenue 217 272 132 161 349 433 Other 105 97 36 36 141 133 Provision for loan losses — — — — — — Total net revenues 3,018 2,596 1,193 996 4,211 3,592 Expenses Excluding Interest 1,844 1,671 615 546 2,459 2,217 Income before taxes on income $ 1,174 $ 925 $ 578 $ 450 $ 1,752 $ 1,375 |
New Accounting Standards (Polic
New Accounting Standards (Policy) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Adoption of New Accounting Standards and New Accounting Standards Not Yet Adopted | Adoption of New Accounting Standards On January 1, 2017, the Company adopted, on a prospective basis, ASU 2016-09, “Stock Compensation – Improvements to Employee Share-Based Payment Accounting (Topic 718)”, which requires entities to recognize the income tax effects for the difference between generally accepted accounting principles (GAAP) and federal income tax treatment (i.e., excess tax benefit or deficiency) 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. As a result, the Company’s tax expense was reduced by approximately $5 million and $ 36 million in the second quarter and first half of 2017 , respectively. Future effects will depend on the Company’s share price, restricted stock vesting, and the volume of equity incentive options exercised. For the purpose of recognizing compensation cost associated with share-based awards, ASU 2016-09 also provides entities with an accounting policy election to account for forfeitures of awards as they occur or continue with current practice of estimating forfeitures at the grant date to determine the number of awards expected to vest and adjusting that estimate as necessary. The Company has elected to continue to follow the current practice. 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 FASB has subsequently issued several amendments to the standard, including deferral of the effective date until January 1, 2018, clarification of principal versus agent considerations, narrow scope improvements and other technical corrections. 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 plans to adopt the revenue recognition guidance in the first quarter of 2018 using the modified retrospective method with a cumulative effect adjustment to opening retained earnings. The guidance does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other U.S. GAAP. Accordingly, the Company does not expect an impact to net interest revenue. The Company believes that the primary areas of potential impact of the guidance for the Company are (1) the impact on the income statement of the capitalization of costs to obtain a contract and (2) the presentation of certain revenue streams in the income statement (i.e., gross versus net reporting). With respect to the capitalization of costs to obtain a contract, the Company believes adoption of the standard will likely alter the timing, measurement and recognition of those costs in the income statement; however, the Company does not expect the impact to be material. The American Institute of Certified Public Accountants has formed sixteen industry task forces to help assess industry specific implementation issues. Preliminary conclusions reached by the Company may be impacted by the finalized task-force papers, which have yet to be released. The next phase of the Company’s implementation work will be to evaluate any changes that may be required to the Company’s applicable disclosures. While the total revenue may be impacted by the adoption of the guidance, net income will not be affected. 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 alternative 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 liabilities by measurement category and form of instrument on the balance sheet or in the accompanying notes. The Company does not expect the adoption of ASU 2016-01 will have a material impact 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 right-of-use 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 adoption of ASU 2016-02 will result in the Company recognizing a right-of-use asset and lease liability on the consolidated balance sheet based on the present value of remaining operating lease payments (see Note 14 of the Company’s 2016 Form 10-K for the undiscounted future annual minimum rental commitments for operating leases). The Company does not expect the adoption of ASU 2016-02 will have a material impact on its 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 HTM debt securities. The new guidance will require estimating expected credit losses (CECL) over the remaining life of an instrument or a portfolio of instruments with similar risk characteristics based on relevant information about past events, current conditions, and reasonable forecasts. The initial estimate of, and the subsequent changes in, CECL will be recognized as credit loss expense through current earnings and will be reflected as an allowance for credit losses offsetting the carrying value of the financial instrument(s) on the balance sheet. The new guidance also amends the OTTI model for AFS debt securities by requiring the use of an allowance, rather than directly reducing the carrying value of the security, and eliminating consideration of the length of time such security has been in an unrealized loss position as a factor in concluding whether a credit loss exists. 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 AFS 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. In March 2017, the FASB issued ASU 2017-08, “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities”, which shortens the amortization period for the premium on certain callable debt securities to the earliest call date. The amendments are applicable to any purchased individual debt security with an explicit and noncontingent call feature that is callable at a fixed price on a preset date. The amendments do not impact the accounting for callable debt securities held at a discount, which will continue to be accreted to maturity. ASU 2017-08 will become effective on January 1, 2019, with early adoption permitted including adoption in an interim period. The amendments will be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The Company is currently evaluating the impact of adopting ASU 2017-08 on its financial statements and EPS. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Securities Available for Sale and Securities Held to Maturity | The amortized cost, gross unrealized gains and losses, and fair value of AFS and HTM securities are as follows: June 30, 2017 Amortized Cost Gross Unrealized Gains Gross Fair Value Available for sale securities: U.S. agency mortgage-backed securities $ 17,604 $ 56 $ 27 $ 17,633 Asset-backed securities 9,858 40 4 9,894 Corporate debt securities 6,603 23 1 6,625 U.S. Treasury securities 7,740 8 51 7,697 Certificates of deposit 1,620 2 — 1,622 U.S. agency notes 1,914 — 7 1,907 Commercial paper 214 — — 214 Non-agency commercial mortgage-backed securities 42 — — 42 Total available for sale securities $ 45,595 $ 129 $ 90 $ 45,634 Held to maturity securities: U.S. agency mortgage-backed securities $ 89,250 $ 499 $ 805 $ 88,944 Non-agency commercial mortgage-backed securities 995 12 3 1,004 Asset-backed securities 12,493 70 2 12,561 Corporate debt securities 3,181 23 — 3,204 U.S. Treasury securities 223 — 1 222 Commercial paper 100 — — 100 U.S. state and municipal securities 1,168 43 — 1,211 Certificates of deposit 200 — — 200 Total held to maturity securities $ 107,610 $ 647 $ 811 $ 107,446 December 31, 2016 Available for sale securities: U.S. agency mortgage-backed securities $ 33,167 $ 120 $ 92 $ 33,195 Asset-backed securities 20,520 29 214 20,335 Corporate debt securities 9,850 20 18 9,852 U.S. Treasury securities 8,679 3 59 8,623 Certificates of deposit 2,070 2 1 2,071 U.S. agency notes 1,915 — 8 1,907 U.S. state and municipal securities 1,167 2 46 1,123 Commercial paper 214 — — 214 Non-agency commercial mortgage-backed securities 45 — — 45 Total available for sale securities $ 77,627 $ 176 $ 438 $ 77,365 Held to maturity securities: U.S. agency mortgage-backed securities $ 72,439 $ 324 $ 1,086 $ 71,677 Non-agency commercial mortgage-backed securities 997 11 4 1,004 Asset-backed securities 941 — — 941 Corporate debt securities 436 — — 436 U.S. Treasury securities 223 — 4 219 Commercial paper 99 — — 99 U.S. state and municipal securities 68 1 1 68 Total held to maturity securities $ 75,203 $ 336 $ 1,095 $ 74,444 |
Securities with Unrealized Losses, Aggregated by Category and Period of Continuous Unrealized Loss | 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 June 30, 2017 Fair Unrealized Losses Fair Unrealized Fair Unrealized Available for sale securities: U.S. agency mortgage-backed securities $ 1,817 $ 6 $ 2,976 $ 21 $ 4,793 $ 27 Asset-backed securities 866 — 550 4 1,416 4 Corporate debt securities 867 1 303 — 1,170 1 U.S. Treasury securities 6,418 51 — — 6,418 51 U.S. agency notes 1,907 7 — — 1,907 7 Total $ 11,875 $ 65 $ 3,829 $ 25 $ 15,704 $ 90 Held to maturity securities: U.S. agency mortgage-backed securities $ 174 $ — $ 48,699 $ 805 $ 48,873 $ 805 Non-agency commercial mortgage-backed securities — — 535 3 535 3 Asset-backed securities 945 1 779 1 1,724 2 U.S. Treasury securities — — 222 1 222 1 Total $ 1,119 $ 1 $ 50,235 $ 810 $ 51,354 $ 811 Total securities with unrealized losses (1) $ 12,994 $ 66 $ 54,064 $ 835 $ 67,058 $ 901 December 31, 2016 Available for sale securities: U.S. agency mortgage-backed securities $ 14,816 $ 69 $ 2,931 $ 23 $ 17,747 $ 92 Asset-backed securities 1,670 13 9,237 201 10,907 214 Corporate debt securities 2,407 17 653 1 3,060 18 U.S. Treasury securities 6,926 59 — — 6,926 59 Certificates of deposit 474 — 100 1 574 1 U.S. agency notes 1,907 8 — — 1,907 8 U.S. state and municipal securities 956 46 — — 956 46 Total $ 29,156 $ 212 $ 12,921 $ 226 $ 42,077 $ 438 Held to maturity securities: U.S. agency mortgage-backed securities $ 51,361 $ 1,086 $ — $ — $ 51,361 $ 1,086 Non-agency commercial mortgage-backed securities 591 4 — — 591 4 U.S. Treasury securities 219 4 — — 219 4 U.S. state and municipal securities 14 1 — — 14 1 Total $ 52,185 $ 1,095 $ — $ — $ 52,185 $ 1,095 Total securities with unrealized losses (2) $ 81,341 $ 1,307 $ 12,921 $ 226 $ 94,262 $ 1,533 (1) The number of investment positions with unrealized losses totaled 205 for AFS securities and 625 for HTM securities. (2) The number of investment positions with unrealized losses totaled 627 for AFS securities and 612 for HTM securities. |
Maturities of Securities Available for Sale and Securities Held to Maturity | The maturities of AFS and HTM securities are as follows: June 30, 2017 Within 1 year After 1 year through 5 years After 5 years through 10 years After 10 years Total Available for sale securities: U.S. agency mortgage-backed securities (1) $ 108 $ 1,884 $ 6,306 $ 9,335 $ 17,633 Asset-backed securities 23 8,019 1,126 726 9,894 Corporate debt securities 2,851 3,774 — — 6,625 U.S. Treasury securities 1,619 6,078 — — 7,697 Certificates of deposit 951 671 — — 1,622 U.S. agency notes 847 1,060 — — 1,907 Commercial paper 214 — — — 214 Non-agency commercial mortgage-backed securities (1) — — — 42 42 Total fair value $ 6,613 $ 21,486 $ 7,432 $ 10,103 $ 45,634 Total amortized cost $ 6,612 $ 21,476 $ 7,427 $ 10,080 $ 45,595 Held to maturity securities: U.S. agency mortgage-backed securities (1) $ — $ 9,695 $ 30,224 $ 49,025 $ 88,944 Non-agency commercial mortgage-backed securities (1) — — 363 641 1,004 Asset-backed securities — 1,019 5,395 6,147 12,561 Corporate debt securities — 3,204 — — 3,204 U.S. Treasury securities — — 222 — 222 Commercial paper 100 — — — 100 U.S. state and municipal securities — — 88 1,123 1,211 Certificates of deposit — 200 — — 200 Total fair value $ 100 $ 14,118 $ 36,292 $ 56,936 $ 107,446 Total amortized cost $ 100 $ 13,939 $ 36,222 $ 57,349 $ 107,610 (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 | Proceeds and gross realized gains and losses from sales of AFS securities are as follows: Three Months Ended Six Months Ended 2017 2016 2017 2016 Proceeds $ 4,421 $ 3,774 $ 5,485 $ 4,074 Gross realized gains 6 3 7 3 |
Bank Loans and Related Allowa25
Bank Loans and Related Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Composition of Bank Loans and Delinquency Analysis by Loan Segment | The composition of bank loans and delinquency analysis by loan type is as follows: June 30, 2017 Current 30-59 days past due 60-89 days past due >90 days past due and other nonaccrual loans Total past due and other nonaccrual loans Total loans Allowance for loan losses Total bank loans - net Residential real estate mortgages $ 9,549 $ 14 $ 1 $ 17 $ 32 $ 9,581 $ 17 $ 9,564 Home equity loans and lines of credit 2,137 1 1 9 11 2,148 8 2,140 Pledged asset lines 4,000 1 — — 1 4,001 — 4,001 Other 113 — — — — 113 1 112 Total bank loans $ 15,799 $ 16 $ 2 $ 26 $ 44 $ 15,843 $ 26 $ 15,817 December 31, 2016 Residential real estate mortgages $ 9,100 $ 15 $ 3 $ 16 $ 34 $ 9,134 $ 17 $ 9,117 Home equity loans and lines of credit 2,336 2 2 10 14 2,350 8 2,342 Pledged asset lines 3,846 4 1 — 5 3,851 — 3,851 Other 94 — — — — 94 1 93 Total bank loans $ 15,376 $ 21 $ 6 $ 26 $ 53 $ 15,429 $ 26 $ 15,403 |
Changes in Allowance for Loan Losses | Changes in the allowance for loan losses were as follows: Three Months Ended June 30, 2017 June 30, 2016 Residential Home equity Other Total Residential Home equity Other Total Balance at beginning of period $ 17 $ 8 $ 1 $ 26 $ 21 $ 11 $ 1 $ 33 Charge-offs (1 ) (1 ) — (2 ) — — — — Recoveries 1 1 — 2 — — — — Provision for loan losses — — — — (1 ) (1 ) — (2 ) Balance at end of period $ 17 $ 8 $ 1 $ 26 $ 20 $ 10 $ 1 $ 31 Six Months Ended June 30, 2017 June 30, 2016 Residential Home equity Other Total Residential Home equity Other Total Balance at beginning of period $ 17 $ 8 $ 1 $ 26 $ 20 $ 11 $ — $ 31 Charge-offs (1 ) (1 ) — (2 ) (1 ) — — (1 ) Recoveries 1 1 — 2 1 — — 1 Provision for loan losses — — — — — (1 ) 1 — Balance at end of period $ 17 $ 8 $ 1 $ 26 $ 20 $ 10 $ 1 $ 31 |
Credit Quality Indicators of Bank Loan Portfolio | The credit quality indicators of the Company’s bank loan portfolio are detailed below: June 30, 2017 Balance Weighted Average Utilization (1) Percent of Residential real estate mortgages: Estimated Current LTV < 70% $ 8,648 775 N/A 0.03 % >70% – < 90% 898 768 N/A 0.30 % >90% – < 100% 16 740 N/A 2.93 % >100% 19 698 N/A 17.07 % Total $ 9,581 774 N/A 0.09 % Home equity loans and lines of credit: Estimated Current LTV (2) < 70% $ 1,893 772 33 % 0.10 % >70% – < 90% 216 759 49 % 0.19 % >90% – < 100% 23 743 65 % 0.98 % >100% 16 730 73 % 8.87 % Total $ 2,148 770 35 % 0.19 % Pledged asset lines: Weighted-Average LTV (2) =70% $ 4,001 767 43 % — (1) The Utilization Rate is calculated using the outstanding balance divided by the associated total line of credit. (2) Represents the LTV for the full line of credit (drawn and undrawn). N/A Not applicable. June 30, 2017 Residential Home equity Year of origination Pre-2013 $ 1,808 $ 1,553 2013 1,534 169 2014 599 137 2015 1,351 140 2016 3,037 104 2017 1,252 45 Total $ 9,581 $ 2,148 Origination FICO <620 $ 7 $ — 620 – 679 85 11 680 – 739 1,491 396 > 740 7,998 1,741 Total $ 9,581 $ 2,148 Origination LTV < 70% $ 7,237 $ 1,491 >70% – < 90% 2,336 646 >90% – < 100% 8 11 Total $ 9,581 $ 2,148 December 31, 2016 Balance Weighted Average Utilization (1) Percent of Residential real estate mortgages: Estimated Current LTV < 70% $ 8,350 774 N/A 0.04 % >70% – < 90% 743 768 N/A 0.35 % >90% – < 100% 21 747 N/A 2.08 % >100% 20 709 N/A 14.50 % Total $ 9,134 773 N/A 0.10 % Home equity loans and lines of credit: Estimated Current LTV (2) < 70% $ 2,070 771 35 % 0.12 % >70% – < 90% 234 757 50 % 0.40 % >90% – < 100% 29 747 66 % 1.74 % >100% 17 728 70 % 3.73 % Total $ 2,350 769 36 % 0.20 % Pledged asset lines: Weighted-Average LTV (2) =70% $ 3,851 763 46 % — (1) The Utilization Rate is calculated using the outstanding balance divided by the associated total line of credit. (2) Represents the LTV for the full line of credit (drawn and undrawn). N/A Not applicable. December 31, 2016 Residential Home equity Year of origination Pre-2013 $ 2,136 $ 1,765 2013 1,746 193 2014 685 152 2015 1,458 146 2016 3,109 94 Total $ 9,134 $ 2,350 Origination FICO <620 $ 8 $ — 620 – 679 92 13 680 – 739 1,427 432 > 740 7,607 1,905 Total $ 9,134 $ 2,350 Origination LTV < 70% $ 6,865 $ 1,628 >70% – < 90% 2,260 709 >90% – < 100% 9 13 Total $ 9,134 $ 2,350 |
Converting to Amortizing Loans | The following table presents when current outstanding HELOCs will convert to amortizing loans: June 30, 2017 Balance Converted to an amortizing loan by period end $ 454 Within 1 year 316 > 1 year – 3 years 566 > 3 years – 5 years 158 > 5 years 654 Total $ 2,148 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Variable Interest Entities [Abstract] | |
Aggregate Assets, Liabilities and Maximum Exposure to Loss | The aggregate assets, liabilities, and maximum exposure to loss from those VIEs in which 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: June 30, 2017 December 31, 2016 Aggregate Aggregate Maximum Aggregate Aggregate Maximum LIHTC investments $ 213 $ 145 $ 213 $ 189 $ 135 $ 189 Other CRA investments (1) 63 — 83 60 — 80 Total $ 276 $ 145 $ 296 $ 249 $ 135 $ 269 (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) | 6 Months Ended |
Jun. 30, 2017 | |
Banking and Thrift [Abstract] | |
Deposits from Banking Clients Consisting of Interest Bearing and Noninterest Bearing Deposits | Bank deposits consist of interest-bearing and non-interest-bearing deposits as follows: June 30, 2017 December 31, 2016 Interest-bearing deposits: Deposits swept from brokerage accounts $ 140,725 $ 141,146 Checking 13,504 13,842 Savings and other 7,495 7,792 Total interest-bearing deposits 161,724 162,780 Non-interest-bearing deposits 576 674 Total bank deposits $ 162,300 $ 163,454 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-term Debt Including Unamortized Debt Discounts and Premiums | Long-term debt was net of unamortized debt discounts/premiums and debt issuance costs of $27 million and $24 million at June 30, 2017 and December 31, 2016 , respectively. June 30, 2017 December 31, 2016 Senior Notes $ 3,204 $ 2,558 Medium-Term Notes 250 250 Finance lease obligation 64 68 Total long-term debt $ 3,518 $ 2,876 |
Annual Maturities on Long-term Debt Outstanding | Annual maturities on long-term debt outstanding at June 30, 2017 are as follows: 2017 $ 254 2018 908 2019 8 2020 709 2021 9 Thereafter 1,657 Total maturities 3,545 Unamortized discount, net (13 ) Debt issuance costs (14 ) Total long-term debt $ 3,518 |
Offsetting Assets and Liabili29
Offsetting Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Offsetting [Abstract] | |
Offsetting Assets and Liabilities | 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 June 30, 2017 and December 31, 2016 . Gross Amounts Not Offset in the Gross Gross Amounts Net Amounts Counterparty Collateral Net June 30, 2017 Assets: Resale agreements (1) $ 7,588 $ — $ 7,588 $ — $ (7,588 ) (2) $ — Securities borrowed (3) 584 — 584 (345 ) (237 ) 2 Total $ 8,172 $ — $ 8,172 $ (345 ) $ (7,825 ) $ 2 Liabilities: Securities loaned (4,5) $ 1,684 $ — $ 1,684 $ (345 ) $ (1,210 ) $ 129 Total $ 1,684 $ — $ 1,684 $ (345 ) $ (1,210 ) $ 129 December 31, 2016 Assets: Resale agreements (1) $ 9,547 $ — $ 9,547 $ — $ (9,547 ) (2) $ — Securities borrowed (3) 393 — 393 (200 ) (189 ) 4 Total $ 9,940 $ — $ 9,940 $ (200 ) $ (9,736 ) $ 4 Liabilities: Securities loaned (4,5) $ 1,996 $ — $ 1,996 $ (200 ) $ (1,660 ) $ 136 Total $ 1,996 $ — $ 1,996 $ (200 ) $ (1,660 ) $ 136 (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. At June 30, 2017 and December 31, 2016 , the fair value of collateral received in connection with resale agreements that are available to be repledged or sold was $7.7 billion and $9.8 billion , respectively. (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. |
Summary of the Fair Value of Client Securities Available to Utilize as Collateral and Amounts Pledged | The following table summarizes the fair value of client securities available, under such regulations, for the Company to utilize as collateral, and the amounts pledged by the Company: June 30, 2017 December 31, 2016 Fair value of client securities available to be pledged $ 23,023 $ 21,516 Fair value of client securities pledged for: Securities lending to other broker-dealers 1,295 1,626 Fulfillment of client short sales 2,225 2,048 Fulfillment of requirements with the Options Clearing Corporation (1) 1,969 1,519 Total collateral pledged $ 5,489 $ 5,193 Note: Excludes amounts available and pledged for securities lending from fully-paid client securities. The fair value of fully-paid client securities available and pledged was $104 million as of June 30, 2017 and $58 million as of December 31, 2016 . (1) Client securities pledged to fulfill client margin requirements for open option contracts established with the Options Clearing Corporation. |
Fair Values of Assets and Lia30
Fair Values of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy for 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: June 30, 2017 Quoted Prices Significant Significant Balance at Cash equivalents: Money market funds $ 1,670 $ — $ — $ 1,670 Total cash equivalents 1,670 — — 1,670 Investments segregated and on deposit for regulatory purposes: Certificates of deposit — 2,026 — 2,026 U.S. Government securities — 5,256 — 5,256 Total investments segregated and on deposit for regulatory purposes — 7,282 — 7,282 Other securities owned: Equity and bond mutual funds 300 — — 300 Schwab Funds ® money market funds 78 — — 78 State and municipal debt obligations — 41 — 41 Equity, U.S. Government and corporate debt, and 2 39 — 41 Total other securities owned 380 80 — 460 Available for sale securities: U.S. agency mortgage-backed securities — 17,633 — 17,633 Asset-backed securities — 9,894 — 9,894 Corporate debt securities — 6,625 — 6,625 U.S. Treasury securities — 7,697 — 7,697 Certificates of deposit — 1,622 — 1,622 U.S. agency notes — 1,907 — 1,907 Commercial paper — 214 — 214 Non-agency commercial mortgage-backed securities — 42 — 42 Total available for sale securities — 45,634 — 45,634 Total $ 2,050 $ 52,996 $ — $ 55,046 December 31, 2016 Quoted Prices Significant Significant Balance at Cash equivalents: Money market funds $ 1,514 $ — $ — $ 1,514 Total cash equivalents 1,514 — — 1,514 Investments segregated and on deposit for regulatory purposes: Certificates of deposit — 2,525 — 2,525 U.S. Government securities — 6,111 — 6,111 Total investments segregated and on deposit for regulatory purposes — 8,636 — 8,636 Other securities owned: Equity and bond mutual funds 272 — — 272 Schwab Funds ® money market funds 108 — — 108 State and municipal debt obligations — 41 — 41 Equity, U.S. Government and corporate debt, and 2 26 — 28 Total other securities owned 382 67 — 449 Available for sale securities: U.S. agency mortgage-backed securities — 33,195 — 33,195 Asset-backed securities — 20,335 — 20,335 Corporate debt securities — 9,852 — 9,852 U.S. Treasury securities — 8,623 — 8,623 Certificates of deposit — 2,071 — 2,071 U.S. agency notes — 1,907 — 1,907 U.S. state and municipal securities — 1,123 — 1,123 Commercial paper — 214 — 214 Non-agency commercial mortgage-backed securities — 45 — 45 Total available for sale securities — 77,365 — 77,365 Total $ 1,896 $ 86,068 $ — $ 87,964 |
Fair Value of Other Financial Instruments | The following tables present the fair value hierarchy for other financial instruments: June 30, 2017 Carrying Quoted Prices Significant Significant Balance at Assets: Cash and cash equivalents $ 7,905 $ — $ 7,905 $ — $ 7,905 Cash and investments segregated and on deposit for regulatory purposes 11,196 — 11,196 — 11,196 Receivables from brokers, dealers, and clearing organizations 910 — 910 — 910 Receivables from brokerage clients – net 17,990 — 17,990 — 17,990 Held to maturity securities: U.S. agency mortgage-backed securities 89,250 — 88,944 — 88,944 Non-agency commercial mortgage-backed securities 995 — 1,004 — 1,004 Asset-backed securities 12,493 — 12,561 — 12,561 Corporate debt securities 3,181 — 3,204 — 3,204 U.S. Treasury securities 223 — 222 — 222 Commercial paper 100 — 100 — 100 U.S. state and municipal securities 1,168 — 1,211 — 1,211 Certificates of deposit 200 — 200 — 200 Total held to maturity securities 107,610 — 107,446 — 107,446 Bank loans – net: Residential real estate mortgages 9,564 — 9,541 — 9,541 Home equity loans and lines of credit 2,140 — 2,249 — 2,249 Pledged asset lines 4,001 — 4,001 — 4,001 Other 112 — 112 — 112 Total bank loans – net 15,817 — 15,903 — 15,903 Other assets 337 — 337 — 337 Total $ 161,765 $ — $ 161,687 $ — $ 161,687 Liabilities: Bank deposits $ 162,300 $ — $ 162,300 $ — $ 162,300 Payables to brokers, dealers, and clearing organizations 1,934 — 1,934 — 1,934 Payables to brokerage clients 33,039 — 33,039 — 33,039 Accrued expenses and other liabilities 911 — 911 — 911 Short-term borrowings 300 — 300 — 300 Long-term debt 3,518 — 3,591 — 3,591 Total $ 202,002 $ — $ 202,075 $ — $ 202,075 December 31, 2016 Carrying Quoted Prices Significant Significant Balance at Assets: Cash and cash equivalents $ 9,314 $ — $ 9,314 $ — $ 9,314 Cash and investments segregated and on deposit for regulatory purposes 13,533 — 13,533 — 13,533 Receivables from brokers, dealers, and clearing organizations 728 — 728 — 728 Receivables from brokerage clients – net 17,151 — 17,151 — 17,151 Held to maturity securities: U.S. agency mortgage-backed securities 72,439 — 71,677 — 71,677 Non-agency commercial mortgage-backed securities 997 — 1,004 — 1,004 Asset-backed securities 941 — 941 — 941 Corporate debt securities 436 — 436 — 436 U.S. Treasury securities 223 — 219 — 219 Commercial paper 99 — 99 — 99 U.S. state and municipal securities 68 — 68 — 68 Total held to maturity securities 75,203 — 74,444 — 74,444 Bank loans – net: Residential real estate mortgages 9,117 — 9,064 — 9,064 Home equity loans and lines of credit 2,342 — 2,458 — 2,458 Pledged asset lines 3,851 — 3,851 — 3,851 Other 93 — 94 — 94 Total bank loans – net 15,403 — 15,467 — 15,467 Other assets 328 — 328 — 328 Total $ 131,660 $ — $ 130,965 $ — $ 130,965 Liabilities: Bank deposits $ 163,454 $ — $ 163,454 $ — $ 163,454 Payables to brokers, dealers, and clearing organizations 2,407 — 2,407 — 2,407 Payables to brokerage clients 35,894 — 35,894 — 35,894 Accrued expenses and other liabilities 1,169 — 1,169 — 1,169 Long-term debt 2,876 — 2,941 — 2,941 Total $ 205,800 $ — $ 205,865 $ — $ 205,865 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Preferred Stock Issued and Outstanding | The Company’s preferred stock issued and outstanding is as follows: June 30, 2017 December 31, 2016 Shares Liquidation Liquidation Carrying Shares Liquidation Liquidation Carrying Series A 400 $ 1,000 $ 400 $ 397 400 $ 1,000 $ 400 $ 397 Series B 485 1,000 485 482 485 1,000 485 482 Series C 600 1,000 600 585 600 1,000 600 585 Series D 750 1,000 750 728 750 1,000 750 728 Series E 6 100,000 600 591 6 100,000 600 591 Total Preferred Stock 2,241 $ 2,835 $ 2,783 2,241 $ 2,835 $ 2,783 |
Accumulated Other Comprehensi32
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Components of Other Comprehensive Income (Loss) | 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 June 30, 2017 2016 Before Tax Net of Before Tax Net of Change in net unrealized gain (loss) on available for sale securities: Net unrealized gain (loss) $ 29 $ (11 ) $ 18 $ 168 $ (63 ) $ 105 Other reclassifications included in other revenue (6 ) 3 (3 ) (3 ) 1 (2 ) Change in net unrealized gain (loss) on held to maturity securities: Amortization of amounts previously recorded upon transfer from available for sale 9 (4 ) 5 — — — Other comprehensive income (loss) $ 32 $ (12 ) $ 20 $ 165 $ (62 ) $ 103 Six Months Ended June 30, 2017 2016 Before Tax Net of Before Tax Net of Change in net unrealized gain (loss) on available for sale securities: Net unrealized gain (loss) $ 81 $ (30 ) $ 51 $ 189 $ (71 ) $ 118 Reclassification of net unrealized loss on securities transferred to held to maturity (1) 227 (85 ) 142 — — — Other reclassifications included in other revenue (7 ) 3 (4 ) (3 ) 1 (2 ) Change in net unrealized gain (loss) on held to maturity securities: Reclassification of net unrealized loss on securities transferred from available for sale (1) (227 ) 85 (142 ) — — — Amortization of amounts previously recorded upon transfer from available for sale 11 (5 ) 6 — — — Other (3 ) 1 (2 ) 1 — 1 Other comprehensive income (loss) $ 82 $ (31 ) $ 51 $ 187 $ (70 ) $ 117 (1) See Note 3 for discussion of the transfer of securities from the AFS category to the HTM category during the first quarter of 2017. |
Accumulated Other Comprehensive Income Balances | Accumulated other comprehensive income balances are as follows: Total Balance at December 31, 2015 $ (134 ) Net unrealized gain (loss) on available for sale securities 116 Other 1 Balance at June 30, 2016 $ (17 ) Balance at December 31, 2016 $ (163 ) Available for sale securities: Net unrealized gain (loss) 51 Reclassification of net unrealized loss on securities transferred to held to maturity 142 Other reclassifications included in other revenue (4 ) Held to maturity securities: Reclassification of net unrealized loss on securities transferred from available for sale (142 ) Amortization of amounts previously recorded upon transfer to held to maturity from available for sale 6 Other (2 ) Balance at June 30, 2017 $ (112 ) |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
EPS under Basic and Diluted Computations | EPS under the basic and diluted computations is as follows: Three Months Ended Six Months Ended 2017 2016 2017 2016 Net income $ 575 $ 452 $ 1,139 $ 864 Preferred stock dividends and other (1) (45 ) (46 ) (84 ) (66 ) Net income available to common stockholders $ 530 $ 406 $ 1,055 $ 798 Weighted-average common shares outstanding — basic 1,338 1,322 1,337 1,322 Common stock equivalent shares related to stock incentive plans 13 11 14 9 Weighted-average common shares outstanding — diluted (2) 1,351 1,333 1,351 1,331 Basic EPS $ .40 $ .31 $ .79 $ .60 Diluted EPS $ .39 $ .30 $ .78 $ .60 (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 9 million and 19 million shares for the second quarters of 2017 and 2016 , respectively, and 10 million and 22 million shares for the first halves of 2017 and 2016, respectively. |
Regulatory Requirements (Tables
Regulatory Requirements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Banking and Thrift [Abstract] | |
Regulatory Capital and Ratios | The regulatory capital and ratios for CSC and Schwab Bank are as follows: Actual Minimum to be Minimum Capital Requirement June 30, 2017 Amount Ratio Amount Ratio Amount Ratio CSC Common Equity Tier 1 Risk-Based Capital $ 13,589 19.5 % N/A $ 3,133 4.5 % Tier 1 Risk-Based Capital 16,372 23.5 % N/A 4,177 6.0 % Total Risk-Based Capital 16,400 23.6 % N/A 5,570 8.0 % Tier 1 Leverage 16,372 7.4 % N/A 8,843 4.0 % Schwab Bank Common Equity Tier 1 Risk-Based Capital $ 12,987 21.0 % $ 4,015 6.5 % $ 2,779 4.5 % Tier 1 Risk-Based Capital 12,987 21.0 % 4,941 8.0 % 3,706 6.0 % Total Risk-Based Capital 13,014 21.1 % 6,176 10.0 % 4,941 8.0 % Tier 1 Leverage 12,987 7.3 % 8,934 5.0 % 7,148 4.0 % December 31, 2016 CSC Common Equity Tier 1 Risk-Based Capital $ 12,574 18.4 % N/A $ 3,068 4.5 % Tier 1 Risk-Based Capital 15,357 22.5 % N/A 4,091 6.0 % Total Risk-Based Capital 15,384 22.6 % N/A 5,454 8.0 % Tier 1 Leverage 15,357 7.2 % N/A 8,516 4.0 % Schwab Bank Common Equity Tier 1 Risk-Based Capital $ 11,878 19.8 % $ 3,894 6.5 % $ 2,696 4.5 % Tier 1 Risk-Based Capital 11,878 19.8 % 4,793 8.0 % 3,595 6.0 % Total Risk-Based Capital 11,904 19.9 % 5,992 10.0 % 4,793 8.0 % Tier 1 Leverage 11,878 7.0 % 8,456 5.0 % 6,765 4.0 % N/A Not applicable. |
Net Capital and Net Capital Requirements for Schwab and optionsXpress, Inc. | Net capital and net capital requirements for Schwab and optionsXpress are as follows: June 30, 2017 Net Capital Minimum Net Capital Required 2% of Aggregate Debit Balances Net Capital in Excess of Required Capital Schwab $ 1,951 $ 0.250 $ 385 $ 1,566 optionsXpress 290 1 7 283 December 31, 2016 Schwab $ 1,846 $ 0.250 $ 355 $ 1,491 optionsXpress 269 1 8 261 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Financial Information for Reportable Segments | Financial information for the Company’s reportable segments is presented in the following table: Investor Services Advisor Services Total Three Months Ended June 30, 2017 2016 2017 2016 2017 2016 Net Revenues: Asset management and administration fees $ 582 $ 514 $ 263 $ 243 $ 845 $ 757 Net interest revenue 795 628 258 170 1,053 798 Trading revenue 98 129 59 72 157 201 Other 55 51 20 19 75 70 Provision for loan losses — 2 — — — 2 Total net revenues 1,530 1,324 600 504 2,130 1,828 Expenses Excluding Interest 914 834 307 274 1,221 1,108 Income before taxes on income $ 616 $ 490 $ 293 $ 230 $ 909 $ 720 Investor Services Advisor Services Total Six Months Ended June 30, 2017 2016 2017 2016 2017 2016 Net Revenues: Asset management and administration fees $ 1,148 $ 986 $ 520 $ 470 $ 1,668 $ 1,456 Net interest revenue 1,548 1,241 505 329 2,053 1,570 Trading revenue 217 272 132 161 349 433 Other 105 97 36 36 141 133 Provision for loan losses — — — — — — Total net revenues 3,018 2,596 1,193 996 4,211 3,592 Expenses Excluding Interest 1,844 1,671 615 546 2,459 2,217 Income before taxes on income $ 1,174 $ 925 $ 578 $ 450 $ 1,752 $ 1,375 |
Introduction and Basis of Pre36
Introduction and Basis of Presentation (Details) | Jun. 30, 2017stateoffice |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of domestic branch offices, more than | office | 340 |
States with domestic branch offices | state | 46 |
New Accounting Standards (Detai
New Accounting Standards (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Tax expense | [1] | $ (334) | $ (268) | $ (613) | $ (511) |
Accounting Standards Update 2016-09 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Tax expense | $ 5 | $ 36 | |||
[1] | Includes the prospective adoption of ASU 2016-09 in 2017. See New Accounting Standards in Note 2 for additional information. |
Investment Securities (Amortize
Investment Securities (Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Securities Available for Sale and Held to Maturity Securities) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Available for sale securities: | ||
Amortized Cost | $ 45,595 | $ 77,627 |
Gross Unrealized Gains | 129 | 176 |
Gross Unrealized Losses | 90 | 438 |
Fair Value | 45,634 | 77,365 |
Held to maturity securities: | ||
Amortized Cost | 107,610 | 75,203 |
Gross Unrealized Gains | 647 | 336 |
Gross Unrealized Losses | 811 | 1,095 |
Fair Value | 107,446 | 74,444 |
U.S. agency mortgage-backed securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 17,604 | 33,167 |
Gross Unrealized Gains | 56 | 120 |
Gross Unrealized Losses | 27 | 92 |
Fair Value | 17,633 | 33,195 |
Held to maturity securities: | ||
Amortized Cost | 89,250 | 72,439 |
Gross Unrealized Gains | 499 | 324 |
Gross Unrealized Losses | 805 | 1,086 |
Fair Value | 88,944 | 71,677 |
Asset-backed securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 9,858 | 20,520 |
Gross Unrealized Gains | 40 | 29 |
Gross Unrealized Losses | 4 | 214 |
Fair Value | 9,894 | 20,335 |
Held to maturity securities: | ||
Amortized Cost | 12,493 | 941 |
Gross Unrealized Gains | 70 | 0 |
Gross Unrealized Losses | 2 | 0 |
Fair Value | 12,561 | 941 |
Corporate debt securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 6,603 | 9,850 |
Gross Unrealized Gains | 23 | 20 |
Gross Unrealized Losses | 1 | 18 |
Fair Value | 6,625 | 9,852 |
Held to maturity securities: | ||
Amortized Cost | 3,181 | 436 |
Gross Unrealized Gains | 23 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 3,204 | 436 |
U.S. Treasury securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 7,740 | 8,679 |
Gross Unrealized Gains | 8 | 3 |
Gross Unrealized Losses | 51 | 59 |
Fair Value | 7,697 | 8,623 |
Held to maturity securities: | ||
Amortized Cost | 223 | 223 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 1 | 4 |
Fair Value | 222 | 219 |
U.S. agency notes [Member] | ||
Available for sale securities: | ||
Amortized Cost | 1,914 | 1,915 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 7 | 8 |
Fair Value | 1,907 | 1,907 |
Certificates of deposit [Member] | ||
Available for sale securities: | ||
Amortized Cost | 1,620 | 2,070 |
Gross Unrealized Gains | 2 | 2 |
Gross Unrealized Losses | 0 | 1 |
Fair Value | 1,622 | 2,071 |
Held to maturity securities: | ||
Amortized Cost | 200 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 200 | |
U.S. state and municipal securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 1,167 | |
Gross Unrealized Gains | 2 | |
Gross Unrealized Losses | 46 | |
Fair Value | 1,123 | |
Held to maturity securities: | ||
Amortized Cost | 1,168 | 68 |
Gross Unrealized Gains | 43 | 1 |
Gross Unrealized Losses | 0 | 1 |
Fair Value | 1,211 | 68 |
Commercial paper [Member] | ||
Available for sale securities: | ||
Amortized Cost | 214 | 214 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 214 | 214 |
Held to maturity securities: | ||
Amortized Cost | 100 | 99 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 100 | 99 |
Non-agency commercial mortgage-backed securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 42 | 45 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 42 | 45 |
Held to maturity securities: | ||
Amortized Cost | 995 | 997 |
Gross Unrealized Gains | 12 | 11 |
Gross Unrealized Losses | 3 | 4 |
Fair Value | $ 1,004 | $ 1,004 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Debt securities transferred from AFS to HTM | $ 24,700 | ||
Unrealized loss on transferred securities | 227 | ||
Consolidated assets | 220,601 | $ 223,383 | |
Fair value of pledged securities | $ 967 | ||
Scenario, Forecast [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Consolidated assets | $ 250,000 |
Investment Securities (Availabl
Investment Securities (Available For Sale and Held to Maturity Securities with Unrealized Losses, Aggregated by Category and Period of Continuous Unrealized Loss) (Details) $ in Millions | Jun. 30, 2017USD ($)security | Dec. 31, 2016USD ($)security |
Available for sale securities: | ||
Less than 12 months Fair Value | $ 11,875 | $ 29,156 |
Less than 12 months Unrealized Losses | 65 | 212 |
12 months or longer Fair Value | 3,829 | 12,921 |
12 months or longer Unrealized Losses | 25 | 226 |
Total Fair Value | 15,704 | 42,077 |
Total Unrealized Losses | 90 | 438 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 1,119 | 52,185 |
Less than 12 months Unrealized Losses | 1 | 1,095 |
12 months or longer Fair Value | 50,235 | 0 |
12 months or longer Unrealized Losses | 810 | 0 |
Total Fair Value | 51,354 | 52,185 |
Total Unrealized Losses | 811 | 1,095 |
Total securities with unrealized losses | ||
Less than 12 months Fair Value | 12,994 | 81,341 |
Less than 12 months Unrealized Losses | 66 | 1,307 |
12 months or longer Fair Value | 54,064 | 12,921 |
12 months or longer Unrealized Losses | 835 | 226 |
Total Fair Value | 67,058 | 94,262 |
Total Unrealized Losses | $ 901 | $ 1,533 |
Number of available for sale securities in unrealized loss positions | security | 205 | 627 |
Number of held to maturity securities in unrealized loss positions | security | 625 | 612 |
U.S. agency mortgage-backed securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | $ 1,817 | $ 14,816 |
Less than 12 months Unrealized Losses | 6 | 69 |
12 months or longer Fair Value | 2,976 | 2,931 |
12 months or longer Unrealized Losses | 21 | 23 |
Total Fair Value | 4,793 | 17,747 |
Total Unrealized Losses | 27 | 92 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 174 | 51,361 |
Less than 12 months Unrealized Losses | 0 | 1,086 |
12 months or longer Fair Value | 48,699 | 0 |
12 months or longer Unrealized Losses | 805 | 0 |
Total Fair Value | 48,873 | 51,361 |
Total Unrealized Losses | 805 | 1,086 |
Asset-backed securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 866 | 1,670 |
Less than 12 months Unrealized Losses | 0 | 13 |
12 months or longer Fair Value | 550 | 9,237 |
12 months or longer Unrealized Losses | 4 | 201 |
Total Fair Value | 1,416 | 10,907 |
Total Unrealized Losses | 4 | 214 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 945 | |
Less than 12 months Unrealized Losses | 1 | |
12 months or longer Fair Value | 779 | |
12 months or longer Unrealized Losses | 1 | |
Total Fair Value | 1,724 | |
Total Unrealized Losses | 2 | |
Corporate debt securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 867 | 2,407 |
Less than 12 months Unrealized Losses | 1 | 17 |
12 months or longer Fair Value | 303 | 653 |
12 months or longer Unrealized Losses | 0 | 1 |
Total Fair Value | 1,170 | 3,060 |
Total Unrealized Losses | 1 | 18 |
U.S. Treasury securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 6,418 | 6,926 |
Less than 12 months Unrealized Losses | 51 | 59 |
12 months or longer Fair Value | 0 | 0 |
12 months or longer Unrealized Losses | 0 | 0 |
Total Fair Value | 6,418 | 6,926 |
Total Unrealized Losses | 51 | 59 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 0 | 219 |
Less than 12 months Unrealized Losses | 0 | 4 |
12 months or longer Fair Value | 222 | 0 |
12 months or longer Unrealized Losses | 1 | 0 |
Total Fair Value | 222 | 219 |
Total Unrealized Losses | 1 | 4 |
U.S. agency notes [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 1,907 | 1,907 |
Less than 12 months Unrealized Losses | 7 | 8 |
12 months or longer Fair Value | 0 | 0 |
12 months or longer Unrealized Losses | 0 | 0 |
Total Fair Value | 1,907 | 1,907 |
Total Unrealized Losses | 7 | 8 |
Certificates of deposit [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 474 | |
Less than 12 months Unrealized Losses | 0 | |
12 months or longer Fair Value | 100 | |
12 months or longer Unrealized Losses | 1 | |
Total Fair Value | 574 | |
Total Unrealized Losses | 1 | |
Non-agency commercial mortgage-backed securities [Member] | ||
Held to maturity securities: | ||
Less than 12 months Fair Value | 0 | 591 |
Less than 12 months Unrealized Losses | 0 | 4 |
12 months or longer Fair Value | 535 | 0 |
12 months or longer Unrealized Losses | 3 | 0 |
Total Fair Value | 535 | 591 |
Total Unrealized Losses | $ 3 | 4 |
U.S. state and municipal securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 956 | |
Less than 12 months Unrealized Losses | 46 | |
12 months or longer Fair Value | 0 | |
12 months or longer Unrealized Losses | 0 | |
Total Fair Value | 956 | |
Total Unrealized Losses | 46 | |
Held to maturity securities: | ||
Less than 12 months Fair Value | 14 | |
Less than 12 months Unrealized Losses | 1 | |
12 months or longer Fair Value | 0 | |
12 months or longer Unrealized Losses | 0 | |
Total Fair Value | 14 | |
Total Unrealized Losses | $ 1 |
Investment Securities (Maturiti
Investment Securities (Maturities of Securities Available for Sale and Held to Maturity) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Available for sale securities, fair value | ||
Within 1 year | $ 6,613 | |
After 1 year through 5 years | 21,486 | |
After 5 years through 10 years | 7,432 | |
After 10 years | 10,103 | |
Fair Value | 45,634 | $ 77,365 |
Available for sale securities, amortized cost | ||
Within 1 year | 6,612 | |
After 1 year through 5 years | 21,476 | |
After 5 years through 10 years | 7,427 | |
After 10 years | 10,080 | |
Amortized Cost | 45,595 | 77,627 |
Held to maturity securities, fair value | ||
Within 1 year | 100 | |
After 1 year through 5 years | 14,118 | |
After 5 years through 10 years | 36,292 | |
After 10 years | 56,936 | |
Fair Value | 107,446 | 74,444 |
Held to maturity securities, amortized cost | ||
Within 1 year | 100 | |
After 1 year through 5 years | 13,939 | |
After 5 years through 10 years | 36,222 | |
After 10 years | 57,349 | |
Amortized Cost | 107,610 | 75,203 |
U.S. agency mortgage-backed securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 108 | |
After 1 year through 5 years | 1,884 | |
After 5 years through 10 years | 6,306 | |
After 10 years | 9,335 | |
Fair Value | 17,633 | 33,195 |
Available for sale securities, amortized cost | ||
Amortized Cost | 17,604 | 33,167 |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 9,695 | |
After 5 years through 10 years | 30,224 | |
After 10 years | 49,025 | |
Fair Value | 88,944 | 71,677 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 89,250 | 72,439 |
Asset-backed securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 23 | |
After 1 year through 5 years | 8,019 | |
After 5 years through 10 years | 1,126 | |
After 10 years | 726 | |
Fair Value | 9,894 | 20,335 |
Available for sale securities, amortized cost | ||
Amortized Cost | 9,858 | 20,520 |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 1,019 | |
After 5 years through 10 years | 5,395 | |
After 10 years | 6,147 | |
Fair Value | 12,561 | 941 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 12,493 | 941 |
Corporate debt securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 2,851 | |
After 1 year through 5 years | 3,774 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 6,625 | 9,852 |
Available for sale securities, amortized cost | ||
Amortized Cost | 6,603 | 9,850 |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 3,204 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 3,204 | 436 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 3,181 | 436 |
U.S. Treasury securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 1,619 | |
After 1 year through 5 years | 6,078 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 7,697 | 8,623 |
Available for sale securities, amortized cost | ||
Amortized Cost | 7,740 | 8,679 |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 222 | |
After 10 years | 0 | |
Fair Value | 222 | 219 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 223 | 223 |
Certificates of deposit [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 951 | |
After 1 year through 5 years | 671 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 1,622 | 2,071 |
Available for sale securities, amortized cost | ||
Amortized Cost | 1,620 | 2,070 |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 200 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 200 | |
Held to maturity securities, amortized cost | ||
Amortized Cost | 200 | |
U.S. agency notes [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 847 | |
After 1 year through 5 years | 1,060 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 1,907 | 1,907 |
Available for sale securities, amortized cost | ||
Amortized Cost | 1,914 | 1,915 |
U.S. state and municipal securities [Member] | ||
Available for sale securities, fair value | ||
Fair Value | 1,123 | |
Available for sale securities, amortized cost | ||
Amortized Cost | 1,167 | |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 88 | |
After 10 years | 1,123 | |
Fair Value | 1,211 | 68 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 1,168 | 68 |
Commercial paper [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 214 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 214 | 214 |
Available for sale securities, amortized cost | ||
Amortized Cost | 214 | 214 |
Held to maturity securities, fair value | ||
Within 1 year | 100 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 100 | 99 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 100 | 99 |
Non-agency commercial mortgage-backed securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 0 | |
After 10 years | 42 | |
Fair Value | 42 | 45 |
Available for sale securities, amortized cost | ||
Amortized Cost | 42 | 45 |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 363 | |
After 10 years | 641 | |
Fair Value | 1,004 | 1,004 |
Held to maturity securities, amortized cost | ||
Amortized Cost | $ 995 | $ 997 |
Investment Securities (Proceeds
Investment Securities (Proceeds and Gross Realized Gains And Losses from Sales of Securities Available for Sale) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds | $ 4,421 | $ 3,774 | $ 5,485 | $ 4,074 |
Gross realized gains | $ 6 | $ 3 | $ 7 | $ 3 |
Bank Loans and Related Allowa43
Bank Loans and Related Allowance for Loan Losses (Composition of Bank Loans and Delinquency Analysis by Loan Segment) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Current | $ 15,799 | $ 15,376 | ||||
Past due and other nonaccrual loans | 44 | 53 | ||||
Total loans | 15,843 | 15,429 | ||||
Allowance for loan losses | 26 | $ 26 | 26 | $ 31 | $ 33 | $ 31 |
Total bank loans — net | 15,817 | 15,403 | ||||
30-59 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 16 | 21 | ||||
60-89 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 2 | 6 | ||||
>90 Days Past Due And Other Nonaccrual Loans [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 26 | 26 | ||||
Residential real estate mortgages [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Current | 9,549 | 9,100 | ||||
Past due and other nonaccrual loans | 32 | 34 | ||||
Total loans | 9,581 | 9,134 | ||||
Allowance for loan losses | 17 | 17 | 17 | 20 | 21 | 20 |
Total bank loans — net | 9,564 | 9,117 | ||||
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 | 14 | 15 | ||||
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 | 1 | 3 | ||||
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 | 17 | 16 | ||||
Home equity loans and lines of credit [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Current | 2,137 | 2,336 | ||||
Past due and other nonaccrual loans | 11 | 14 | ||||
Total loans | 2,148 | 2,350 | ||||
Allowance for loan losses | 8 | 8 | 8 | 10 | 11 | 11 |
Total bank loans — net | 2,140 | 2,342 | ||||
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 | 1 | 2 | ||||
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 | 2 | ||||
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 | 9 | 10 | ||||
Pledged Asset Lines [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Current | 4,000 | 3,846 | ||||
Past due and other nonaccrual loans | 1 | 5 | ||||
Total loans | 4,001 | 3,851 | ||||
Allowance for loan losses | 0 | 0 | ||||
Total bank loans — net | 4,001 | 3,851 | ||||
Pledged Asset Lines [Member] | 30-59 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 1 | 4 | ||||
Pledged Asset Lines [Member] | 60-89 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 0 | 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 | 0 | 0 | ||||
Other [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Current | 113 | 94 | ||||
Past due and other nonaccrual loans | 0 | 0 | ||||
Total loans | 113 | 94 | ||||
Allowance for loan losses | 1 | $ 1 | 1 | $ 1 | $ 1 | $ 0 |
Total bank loans — net | 112 | 93 | ||||
Other [Member] | 30-59 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 0 | 0 | ||||
Other [Member] | 60-89 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 0 | 0 | ||||
Other [Member] | >90 Days Past Due And Other Nonaccrual Loans [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | $ 0 | $ 0 |
Bank Loans and Related Allowa44
Bank Loans and Related Allowance for Loan Losses (Narrative) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017USD ($)loan | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)loan | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Commitments to extend credit related to unused HELOCs, PALs, and other lines of credit | $ 9,200 | $ 9,200 | $ 8,400 | ||
Commitments to purchase First Mortgage loans | $ 457 | $ 466 | |||
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 | $ 30 | $ 30 | $ 31 | ||
Impaired assets, which include nonaccrual loans, other real estate owned and troubled debt restructurings | 41 | 41 | 45 | ||
Secured by second liens | 15,843 | 15,843 | 15,429 | ||
Adjustable Rate First Mortgage [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Bank loans | 8,600 | $ 8,600 | |||
Percent of loans with interest-only payments | 34.00% | ||||
Percent of interest only adjustable rate | 56.00% | ||||
Adjustable Rate First Mortgage [Member] | Minimum [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Fixed rate interest rate period | 3 years | ||||
Interest-only reset period | 3 years | ||||
Adjustable Rate First Mortgage [Member] | Maximum [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Fixed rate interest rate period | 10 years | ||||
First Mortgage and Home Equity Loans and Lines of Credit [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unamortized premiums and discounts and direct origination costs | 77 | $ 77 | $ 78 | ||
First Mortgage and Home Equity Loans and Lines of Credit [Member] | California [Member] | Loans, Geographic Area [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration risk percentage | 48.00% | 48.00% | |||
First Mortgage [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Purchased first mortgages and HELOCs | 683 | $ 691 | $ 1,300 | $ 1,200 | |
Home Equity Loans and Lines of Credit [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Purchased first mortgages and HELOCs | 111 | $ 112 | $ 229 | $ 222 | |
Loan term | 30 years | ||||
Initial draw period | 10 years | ||||
Converting to amortizing loans period | 20 years | ||||
Secured by second liens | $ 2,148 | $ 2,148 | $ 2,350 | ||
Percent of minimum interest paid | 38.00% | 38.00% | |||
Home Equity Secured By Second Liens [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Secured by second liens | $ 1,700 | $ 1,700 |
Bank Loans and Related Allowa45
Bank Loans and Related Allowance for Loan Losses (Changes in Allowance for Loan Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | $ 26 | $ 33 | $ 26 | $ 31 |
Charge-offs | (2) | 0 | (2) | (1) |
Recoveries | 2 | 0 | 2 | 1 |
Provision for loan losses | 0 | (2) | 0 | 0 |
Balance at end of period | 26 | 31 | 26 | 31 |
Residential real estate mortgages [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 17 | 21 | 17 | 20 |
Charge-offs | (1) | 0 | (1) | (1) |
Recoveries | 1 | 0 | 1 | 1 |
Provision for loan losses | 0 | (1) | 0 | 0 |
Balance at end of period | 17 | 20 | 17 | 20 |
Home equity loans and lines of credit [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 8 | 11 | 8 | 11 |
Charge-offs | (1) | 0 | (1) | 0 |
Recoveries | 1 | 0 | 1 | 0 |
Provision for loan losses | 0 | (1) | 0 | (1) |
Balance at end of period | 8 | 10 | 8 | 10 |
Other [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 1 | 1 | 1 | 0 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision for loan losses | 0 | 0 | 0 | 1 |
Balance at end of period | $ 1 | $ 1 | $ 1 | $ 1 |
Bank Loans and Related Allowa46
Bank Loans and Related Allowance for Loan Losses (Credit Quality Indicators of Bank Loan Portfolio) (Details) $ in Millions | Jun. 30, 2017USD ($)credit_rating | Dec. 31, 2016USD ($)credit_rating |
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 15,843 | $ 15,429 |
Residential real estate mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 9,581 | $ 9,134 |
Weighted Average Updated FICO | credit_rating | 774 | 773 |
Percent of Loans on Nonaccrual Status | 0.09% | 0.10% |
Residential real estate mortgages [Member] | Origination FICO Score Below 620 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 7 | $ 8 |
Residential real estate mortgages [Member] | Origination FICO Score 620 Through 679 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 85 | 92 |
Residential real estate mortgages [Member] | Origination FICO Score 680 Through 739 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,491 | 1,427 |
Residential real estate mortgages [Member] | Origination FICO Score 740 And Above [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 7,998 | 7,607 |
Residential real estate mortgages [Member] | Year of origination Pre 2013 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,808 | 2,136 |
Residential real estate mortgages [Member] | Year of origination 2013 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,534 | 1,746 |
Residential real estate mortgages [Member] | Year of origination 2014 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 599 | 685 |
Residential real estate mortgages [Member] | Year of origination 2015 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,351 | 1,458 |
Residential real estate mortgages [Member] | Year of origination 2016 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 3,037 | 3,109 |
Residential real estate mortgages [Member] | Year of origination 2017 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,252 | |
Residential real estate mortgages [Member] | Estimated Current LTV 70% And Below [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 8,648 | $ 8,350 |
Weighted Average Updated FICO | credit_rating | 775 | 774 |
Percent of Loans on Nonaccrual Status | 0.03% | 0.04% |
Residential real estate mortgages [Member] | Estimated Current LTV Greater Than 70% through 90% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 898 | $ 743 |
Weighted Average Updated FICO | credit_rating | 768 | 768 |
Percent of Loans on Nonaccrual Status | 0.30% | 0.35% |
Residential real estate mortgages [Member] | Estimated Current LTV Greater Than 90% through 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 16 | $ 21 |
Weighted Average Updated FICO | credit_rating | 740 | 747 |
Percent of Loans on Nonaccrual Status | 2.93% | 2.08% |
Residential real estate mortgages [Member] | Estimated Current LTV Greater Than 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 19 | $ 20 |
Weighted Average Updated FICO | credit_rating | 698 | 709 |
Percent of Loans on Nonaccrual Status | 17.07% | 14.50% |
Residential real estate mortgages [Member] | Origination Loan To Value Ratio 70% And Below [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 7,237 | $ 6,865 |
Residential real estate mortgages [Member] | Origination Loan to Value Ratio Greater Than 70% Through 90% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 2,336 | 2,260 |
Residential real estate mortgages [Member] | Origination Loan to Value Ratio Greater Than 90% Through 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 8 | 9 |
Home equity loans and lines of credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 2,148 | $ 2,350 |
Weighted Average Updated FICO | credit_rating | 770 | 769 |
Utilization Rate | 35.00% | 36.00% |
Percent of Loans on Nonaccrual Status | 0.19% | 0.20% |
Home equity loans and lines of credit [Member] | Origination FICO Score Below 620 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 0 | $ 0 |
Home equity loans and lines of credit [Member] | Origination FICO Score 620 Through 679 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 11 | 13 |
Home equity loans and lines of credit [Member] | Origination FICO Score 680 Through 739 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 396 | 432 |
Home equity loans and lines of credit [Member] | Origination FICO Score 740 And Above [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,741 | 1,905 |
Home equity loans and lines of credit [Member] | Year of origination Pre 2013 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,553 | 1,765 |
Home equity loans and lines of credit [Member] | Year of origination 2013 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 169 | 193 |
Home equity loans and lines of credit [Member] | Year of origination 2014 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 137 | 152 |
Home equity loans and lines of credit [Member] | Year of origination 2015 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 140 | 146 |
Home equity loans and lines of credit [Member] | Year of origination 2016 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 104 | 94 |
Home equity loans and lines of credit [Member] | Year of origination 2017 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 45 | |
Home equity loans and lines of credit [Member] | Estimated Current LTV 70% And Below [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 1,893 | $ 2,070 |
Weighted Average Updated FICO | credit_rating | 772 | 771 |
Utilization Rate | 33.00% | 35.00% |
Percent of Loans on Nonaccrual Status | 0.10% | 0.12% |
Home equity loans and lines of credit [Member] | Estimated Current LTV Greater Than 70% through 90% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 216 | $ 234 |
Weighted Average Updated FICO | credit_rating | 759 | 757 |
Utilization Rate | 49.00% | 50.00% |
Percent of Loans on Nonaccrual Status | 0.19% | 0.40% |
Home equity loans and lines of credit [Member] | Estimated Current LTV Greater Than 90% through 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 23 | $ 29 |
Weighted Average Updated FICO | credit_rating | 743 | 747 |
Utilization Rate | 65.00% | 66.00% |
Percent of Loans on Nonaccrual Status | 0.98% | 1.74% |
Home equity loans and lines of credit [Member] | Estimated Current LTV Greater Than 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 16 | $ 17 |
Weighted Average Updated FICO | credit_rating | 730 | 728 |
Utilization Rate | 73.00% | 70.00% |
Percent of Loans on Nonaccrual Status | 8.87% | 3.73% |
Home equity loans and lines of credit [Member] | Origination Loan To Value Ratio 70% And Below [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 1,491 | $ 1,628 |
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 | 646 | 709 |
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 | 11 | 13 |
Pledged asset lines [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 4,001 | 3,851 |
Pledged asset lines [Member] | Weighted Average Loan to Value Ratio =70% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 4,001 | $ 3,851 |
Weighted Average Updated FICO | credit_rating | 767 | 763 |
Utilization Rate | 43.00% | 46.00% |
Percent of Loans on Nonaccrual Status | 0.00% | 0.00% |
Bank Loans and Related Allowa47
Bank Loans and Related Allowance for Loan Losses (Convert to Amortizing Loans) (Details) - Home equity loans and lines of credit [Member] $ in Millions | Jun. 30, 2017USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Converted to an amortizing loan by period end | $ 454 |
Within 1 year | 316 |
1 year – 3 years | 566 |
3 years – 5 years | 158 |
5 years | 654 |
Total | $ 2,148 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Variable Interest Entity [Line Items] | ||
Accrued expenses and other liabilities | $ 2,021 | $ 2,331 |
LIHTC Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Investment carrying value | 213 | 189 |
Accrued expenses and other liabilities | $ 145 | $ 135 |
LIHTC Investments [Member] | Minimum [Member] | ||
Variable Interest Entity [Line Items] | ||
Commitment, expected payment date | 2,017 | |
LIHTC Investments [Member] | Maximum [Member] | ||
Variable Interest Entity [Line Items] | ||
Commitment, expected payment date | 2,020 |
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 | Jun. 30, 2017 | Dec. 31, 2016 |
Variable Interest Entity [Line Items] | ||
Aggregate assets | $ 276 | $ 249 |
Aggregate liabilities | 145 | 135 |
Maximum exposure to loss | 296 | 269 |
LIHTC Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Aggregate assets | 213 | 189 |
Aggregate liabilities | 145 | 135 |
Maximum exposure to loss | 213 | 189 |
Other CRA Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Aggregate assets | 63 | 60 |
Aggregate liabilities | 0 | 0 |
Maximum exposure to loss | $ 83 | $ 80 |
Bank Deposits (Details)
Bank Deposits (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Interest-bearing deposits: | ||
Deposits swept from brokerage accounts | $ 140,725 | $ 141,146 |
Checking | 13,504 | 13,842 |
Savings and other | 7,495 | 7,792 |
Total interest-bearing deposits | 161,724 | 162,780 |
Non-interest-bearing deposits | 576 | 674 |
Total bank deposits | $ 162,300 | $ 163,454 |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) - USD ($) | Jun. 30, 2017 | Mar. 02, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||
Unamortized debt discounts/premiums and debt issuance costs | $ 27,000,000 | $ 24,000,000 | |
Weighted average interest rate on long-term debt | 3.34% | ||
Commercial paper [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 1,500,000,000 | ||
Commercial paper | 0 | 0 | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 750,000,000 | ||
FHLB [Member] | Secured Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Funds drawn under LOC's | 0 | 0 | |
Schwab Bank [Member] | FHLB [Member] | |||
Debt Instrument [Line Items] | |||
Investment in FHLB | 68,000,000 | 81,000,000 | |
Charles Schwab & Co. [Member] | |||
Debt Instrument [Line Items] | |||
Current borrowing capacity | $ 300,000,000 | $ 0 | |
Senior Notes Due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes issued | $ 650,000,000 | ||
Fixed interest rate | 3.20% |
Borrowings (Long-term Debt Incl
Borrowings (Long-term Debt Including Unamortized Debt Discounts and Premiums) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
Senior Notes | $ 3,204 | $ 2,558 |
Medium-Term Notes | 250 | 250 |
Finance lease obligation | 64 | 68 |
Total long-term debt | $ 3,518 | $ 2,876 |
Borrowings (Annual Maturities o
Borrowings (Annual Maturities on Long-term Debt Outstanding) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
2,017 | $ 254 | |
2,018 | 908 | |
2,019 | 8 | |
2,020 | 709 | |
2,021 | 9 | |
Thereafter | 1,657 | |
Total maturities | 3,545 | |
Unamortized discount, net | (13) | |
Debt issuance costs | (14) | |
Total long-term debt | $ 3,518 | $ 2,876 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Jun. 30, 2017 | Aug. 28, 2008 |
Loss Contingencies [Line Items] | ||
Aggregate face amount of letter of credit agreements | $ 295,000,000 | |
Performance Guarantee [Member] | ||
Loss Contingencies [Line Items] | ||
Liability for guarantees | 0 | |
Margin Requirements [Member] | ||
Loss Contingencies [Line Items] | ||
Funds drawn under LOC's | $ 0 | |
Bond Market Fund Litigation [Member] | ||
Loss Contingencies [Line Items] | ||
Alleged minimum percentage of fund assets invested in CMOs and mortgage-backed securities without obtaining shareholder vote | 25.00% |
Offsetting Assets and Liabili55
Offsetting Assets and Liabilities (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Securities Financing Transaction, Fair Value [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value of borrowed securities from other broker-dealers to fulfill short sales by clients | $ 426 | $ 213 |
Offsetting Assets and Liabili56
Offsetting Assets and Liabilities (Offsetting Assets and Liabilities) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Resale agreements | ||
Gross Assets | $ 7,588 | $ 9,547 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 7,588 | 9,547 |
Counterparty Offsetting | 0 | 0 |
Collateral | (7,588) | (9,547) |
Resale agreements, Net Amount | 0 | 0 |
Securities borrowed | ||
Gross Assets | 584 | 393 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 584 | 393 |
Counterparty Offsetting | (345) | (200) |
Collateral | (237) | (189) |
Net Amount | 2 | 4 |
Total Gross Assets | 8,172 | 9,940 |
Total Assets, Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | 0 |
Total Assets, Net Amounts Presented in the Condensed Consolidated Balance Sheets | 8,172 | 9,940 |
Total Assets, Gross Amounts Not Offset in the Consolidated Balance Sheet, Counterparty Offsetting | (345) | (200) |
Total Assets, Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral | (7,825) | (9,736) |
Total Assets, Net Amount | 2 | 4 |
Securities loaned | ||
Gross Liabilities | 1,684 | 1,996 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 1,684 | 1,996 |
Counterparty Offsetting | (345) | (200) |
Collateral | (1,210) | (1,660) |
Net Amount | 129 | 136 |
Total Gross Liabilities | 1,684 | 1,996 |
Total Liabilities, Net Amounts Presented in the Consolidated Balance Sheet | 1,684 | 1,996 |
Total Liabilities, Gross Amounts Not Offset in the Consolidated Balance Sheet, Counterparty Offsetting | (345) | (200) |
Total Liabilities, Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral | (1,210) | (1,660) |
Total Liabilities, Net Amount | 129 | 136 |
Offsetting Assets [Line Items] | ||
Fair value of client securities available to be pledged | $ 23,023 | $ 21,516 |
Resale And Repurchase Agreements [Member] | ||
Offsetting Assets [Line Items] | ||
Percentage of collateral to related assets | 102.00% | 102.00% |
Fair value of client securities available to be pledged | $ 7,700 | $ 9,800 |
Offsetting Assets and Liabili57
Offsetting Assets and Liabilities (Summary of the Fair Value of Client Securities Available to Utilize as Collateral and Amounts Pledged) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Securities Financing Transaction [Line Items] | ||
Fair value of client securities available to be pledged | $ 23,023 | $ 21,516 |
Fair value of client securities pledged | 5,489 | 5,193 |
Securities Lending to Other Broker-Dealers [Member] | ||
Securities Financing Transaction [Line Items] | ||
Fair value of client securities pledged | 1,295 | 1,626 |
Fulfillment of Client Short Sales [Member] | ||
Securities Financing Transaction [Line Items] | ||
Fair value of client securities pledged | 2,225 | 2,048 |
Fulfillment of Requirements with Options Clearing Corporation [Member] | ||
Securities Financing Transaction [Line Items] | ||
Fair value of client securities pledged | 1,969 | 1,519 |
Fully Paid Client Securities [Member] | ||
Securities Financing Transaction [Line Items] | ||
Fair value of client securities pledged | $ 104 | $ 58 |
Fair Values of Assets and Lia58
Fair Values of Assets and Liabilities (Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | $ 460 | $ 449 |
Available for sale securities | 45,634 | 77,365 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,670 | 1,514 |
Investments segregated and on deposit for regulatory purposes | 7,282 | 8,636 |
Other securities owned | 460 | 449 |
Available for sale securities | 45,634 | 77,365 |
Total | 55,046 | 87,964 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,670 | 1,514 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Certificates of deposit [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 2,026 | 2,525 |
Available for sale securities | 1,622 | 2,071 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | U.S. Government securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 5,256 | 6,111 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Equity and bond mutual funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 300 | 272 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Schwab Funds money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 78 | 108 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | State and municipal debt obligations [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 41 | 41 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Equity, U.S. Government and corporate debt, and other securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 41 | 28 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | U.S. agency mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 17,633 | 33,195 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 9,894 | 20,335 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 6,625 | 9,852 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | U.S. Treasury securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 7,697 | 8,623 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | U.S. agency notes [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 1,907 | 1,907 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | U.S. state and municipal securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 1,123 | |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 214 | 214 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 42 | 45 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,670 | 1,514 |
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Other securities owned | 380 | 382 |
Available for sale securities | 0 | 0 |
Total | 2,050 | 1,896 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,670 | 1,514 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Certificates of deposit [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Government securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity and bond mutual funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 300 | 272 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Schwab Funds money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 78 | 108 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | State and municipal debt obligations [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity, U.S. Government and corporate debt, and other securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 2 | 2 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. agency mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasury securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. agency notes [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. state and municipal securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Investments segregated and on deposit for regulatory purposes | 7,282 | 8,636 |
Other securities owned | 80 | 67 |
Available for sale securities | 45,634 | 77,365 |
Total | 52,996 | 86,068 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Certificates of deposit [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 2,026 | 2,525 |
Available for sale securities | 1,622 | 2,071 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Government securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 5,256 | 6,111 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Equity and bond mutual funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Schwab Funds money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | State and municipal debt obligations [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 41 | 41 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Equity, U.S. Government and corporate debt, and other securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 39 | 26 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. agency mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 17,633 | 33,195 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 9,894 | 20,335 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 6,625 | 9,852 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 7,697 | 8,623 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. agency notes [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 1,907 | 1,907 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. state and municipal securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 1,123 | |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 214 | 214 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 42 | 45 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Other securities owned | 0 | 0 |
Available for sale securities | 0 | 0 |
Total | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | Money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | Certificates of deposit [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Government securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | Equity and bond mutual funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | Schwab Funds money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | State and municipal debt obligations [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | Equity, U.S. Government and corporate debt, and other securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. agency mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Treasury securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. agency notes [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. state and municipal securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $ 0 | $ 0 |
Fair Values of Assets and Lia59
Fair Values of Assets and Liabilities (Fair Value of Other Financial Instruments) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Assets: | ||
Held to maturity securities | $ 107,446 | $ 74,444 |
Carrying Amount [Member] | ||
Assets: | ||
Cash and cash equivalents | 7,905 | 9,314 |
Cash and investments segregated and on deposit for regulatory purposes | 11,196 | 13,533 |
Receivables from brokers, dealers, and clearing organizations | 910 | 728 |
Receivables from brokerage clients – net | 17,990 | 17,151 |
Held to maturity securities | 107,610 | 75,203 |
Bank loans – net | 15,817 | 15,403 |
Other assets | 337 | 328 |
Total | 161,765 | 131,660 |
Liabilities: | ||
Bank deposits | 162,300 | 163,454 |
Payables to brokers, dealers, and clearing organizations | 1,934 | 2,407 |
Payables to brokerage clients | 33,039 | 35,894 |
Accrued expenses and other liabilities | 911 | 1,169 |
Short-term borrowings | 300 | |
Long-term debt | 3,518 | 2,876 |
Total | 202,002 | 205,800 |
Carrying Amount [Member] | Residential real estate mortgages [Member] | ||
Assets: | ||
Bank loans – net | 9,564 | 9,117 |
Carrying Amount [Member] | Home equity loans and lines of credit [Member] | ||
Assets: | ||
Bank loans – net | 2,140 | 2,342 |
Carrying Amount [Member] | Pledged Asset Lines [Member] | ||
Assets: | ||
Bank loans – net | 4,001 | 3,851 |
Carrying Amount [Member] | Other [Member] | ||
Assets: | ||
Bank loans – net | 112 | 93 |
Carrying Amount [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 89,250 | 72,439 |
Carrying Amount [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 995 | 997 |
Carrying Amount [Member] | Asset-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 12,493 | 941 |
Carrying Amount [Member] | Corporate debt securities [Member] | ||
Assets: | ||
Held to maturity securities | 3,181 | 436 |
Carrying Amount [Member] | U.S. Treasury securities [Member] | ||
Assets: | ||
Held to maturity securities | 223 | 223 |
Carrying Amount [Member] | Commercial paper [Member] | ||
Assets: | ||
Held to maturity securities | 100 | 99 |
Carrying Amount [Member] | U.S. state and municipal securities [Member] | ||
Assets: | ||
Held to maturity securities | 1,168 | 68 |
Carrying Amount [Member] | Certificates of deposit [Member] | ||
Assets: | ||
Held to maturity securities | 200 | |
Portion at Other than Fair Value Measurement [Member] | ||
Assets: | ||
Cash and cash equivalents | 7,905 | 9,314 |
Cash and investments segregated and on deposit for regulatory purposes | 11,196 | 13,533 |
Receivables from brokers, dealers, and clearing organizations | 910 | 728 |
Receivables from brokerage clients – net | 17,990 | 17,151 |
Held to maturity securities | 107,446 | 74,444 |
Bank loans – net | 15,903 | 15,467 |
Other assets | 337 | 328 |
Total | 161,687 | 130,965 |
Liabilities: | ||
Bank deposits | 162,300 | 163,454 |
Payables to brokers, dealers, and clearing organizations | 1,934 | 2,407 |
Payables to brokerage clients | 33,039 | 35,894 |
Accrued expenses and other liabilities | 911 | 1,169 |
Short-term borrowings | 300 | |
Long-term debt | 3,591 | 2,941 |
Total | 202,075 | 205,865 |
Portion at Other than Fair Value Measurement [Member] | Residential real estate mortgages [Member] | ||
Assets: | ||
Bank loans – net | 9,541 | 9,064 |
Portion at Other than Fair Value Measurement [Member] | Home equity loans and lines of credit [Member] | ||
Assets: | ||
Bank loans – net | 2,249 | 2,458 |
Portion at Other than Fair Value Measurement [Member] | Pledged Asset Lines [Member] | ||
Assets: | ||
Bank loans – net | 4,001 | 3,851 |
Portion at Other than Fair Value Measurement [Member] | Other [Member] | ||
Assets: | ||
Bank loans – net | 112 | 94 |
Portion at Other than Fair Value Measurement [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 88,944 | 71,677 |
Portion at Other than Fair Value Measurement [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 1,004 | 1,004 |
Portion at Other than Fair Value Measurement [Member] | Asset-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 12,561 | 941 |
Portion at Other than Fair Value Measurement [Member] | Corporate debt securities [Member] | ||
Assets: | ||
Held to maturity securities | 3,204 | 436 |
Portion at Other than Fair Value Measurement [Member] | U.S. Treasury securities [Member] | ||
Assets: | ||
Held to maturity securities | 222 | 219 |
Portion at Other than Fair Value Measurement [Member] | Commercial paper [Member] | ||
Assets: | ||
Held to maturity securities | 100 | 99 |
Portion at Other than Fair Value Measurement [Member] | U.S. state and municipal securities [Member] | ||
Assets: | ||
Held to maturity securities | 1,211 | 68 |
Portion at Other than Fair Value Measurement [Member] | Certificates of deposit [Member] | ||
Assets: | ||
Held to maturity securities | 200 | |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Cash and investments segregated and on deposit for regulatory purposes | 0 | 0 |
Receivables from brokers, dealers, and clearing organizations | 0 | 0 |
Receivables from brokerage clients – net | 0 | 0 |
Held to maturity securities | 0 | 0 |
Bank loans – net | 0 | 0 |
Other assets | 0 | 0 |
Total | 0 | 0 |
Liabilities: | ||
Bank deposits | 0 | 0 |
Payables to brokers, dealers, and clearing organizations | 0 | 0 |
Payables to brokerage clients | 0 | 0 |
Accrued expenses and other liabilities | 0 | 0 |
Short-term borrowings | 0 | |
Long-term debt | 0 | 0 |
Total | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Residential real estate mortgages [Member] | ||
Assets: | ||
Bank loans – net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Home equity loans and lines of credit [Member] | ||
Assets: | ||
Bank loans – net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Pledged Asset Lines [Member] | ||
Assets: | ||
Bank loans – net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other [Member] | ||
Assets: | ||
Bank loans – net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Asset-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate debt securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasury securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commercial paper [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. state and municipal securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Certificates of deposit [Member] | ||
Assets: | ||
Held to maturity securities | 0 | |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Cash and cash equivalents | 7,905 | 9,314 |
Cash and investments segregated and on deposit for regulatory purposes | 11,196 | 13,533 |
Receivables from brokers, dealers, and clearing organizations | 910 | 728 |
Receivables from brokerage clients – net | 17,990 | 17,151 |
Held to maturity securities | 107,446 | 74,444 |
Bank loans – net | 15,903 | 15,467 |
Other assets | 337 | 328 |
Total | 161,687 | 130,965 |
Liabilities: | ||
Bank deposits | 162,300 | 163,454 |
Payables to brokers, dealers, and clearing organizations | 1,934 | 2,407 |
Payables to brokerage clients | 33,039 | 35,894 |
Accrued expenses and other liabilities | 911 | 1,169 |
Short-term borrowings | 300 | |
Long-term debt | 3,591 | 2,941 |
Total | 202,075 | 205,865 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Residential real estate mortgages [Member] | ||
Assets: | ||
Bank loans – net | 9,541 | 9,064 |
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 – net | 2,249 | 2,458 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Pledged Asset Lines [Member] | ||
Assets: | ||
Bank loans – net | 4,001 | 3,851 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other [Member] | ||
Assets: | ||
Bank loans – net | 112 | 94 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 88,944 | 71,677 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 1,004 | 1,004 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Asset-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 12,561 | 941 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate debt securities [Member] | ||
Assets: | ||
Held to maturity securities | 3,204 | 436 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury securities [Member] | ||
Assets: | ||
Held to maturity securities | 222 | 219 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Commercial paper [Member] | ||
Assets: | ||
Held to maturity securities | 100 | 99 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. state and municipal securities [Member] | ||
Assets: | ||
Held to maturity securities | 1,211 | 68 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Certificates of deposit [Member] | ||
Assets: | ||
Held to maturity securities | 200 | |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Cash and investments segregated and on deposit for regulatory purposes | 0 | 0 |
Receivables from brokers, dealers, and clearing organizations | 0 | 0 |
Receivables from brokerage clients – net | 0 | 0 |
Held to maturity securities | 0 | 0 |
Bank loans – net | 0 | 0 |
Other assets | 0 | 0 |
Total | 0 | 0 |
Liabilities: | ||
Bank deposits | 0 | 0 |
Payables to brokers, dealers, and clearing organizations | 0 | 0 |
Payables to brokerage clients | 0 | 0 |
Accrued expenses and other liabilities | 0 | 0 |
Short-term borrowings | 0 | |
Long-term debt | 0 | 0 |
Total | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Residential real estate mortgages [Member] | ||
Assets: | ||
Bank loans – net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Home equity loans and lines of credit [Member] | ||
Assets: | ||
Bank loans – net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Pledged Asset Lines [Member] | ||
Assets: | ||
Bank loans – net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other [Member] | ||
Assets: | ||
Bank loans – net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Asset-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Corporate debt securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Treasury securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Commercial paper [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. state and municipal securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | $ 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Certificates of deposit [Member] | ||
Assets: | ||
Held to maturity securities | $ 0 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Class of Stock [Line Items] | ||
Shares Issued (in shares) | 2,241 | 2,241 |
Shares Outstanding (in shares) | 2,241 | 2,241 |
Liquidation Preference | $ 2,835 | $ 2,835 |
Carrying Value | $ 2,783 | $ 2,783 |
Series A Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares Issued (in shares) | 400 | 400 |
Shares Outstanding (in shares) | 400 | 400 |
Liquidation Preference Per Share (USD per share) | $ 1,000 | $ 1,000 |
Liquidation Preference | $ 400 | $ 400 |
Carrying Value | $ 397 | $ 397 |
Series B Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares Issued (in shares) | 485 | 485 |
Shares Outstanding (in shares) | 485 | 485 |
Liquidation Preference Per Share (USD per share) | $ 1,000 | $ 1,000 |
Liquidation Preference | $ 485 | $ 485 |
Carrying Value | $ 482 | $ 482 |
Series C Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares Issued (in shares) | 600 | 600 |
Shares Outstanding (in shares) | 600 | 600 |
Liquidation Preference Per Share (USD per share) | $ 1,000 | $ 1,000 |
Liquidation Preference | $ 600 | $ 600 |
Carrying Value | $ 585 | $ 585 |
Series D Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares Issued (in shares) | 750 | 750 |
Shares Outstanding (in shares) | 750 | 750 |
Liquidation Preference Per Share (USD per share) | $ 1,000 | $ 1,000 |
Liquidation Preference | $ 750 | $ 750 |
Carrying Value | $ 728 | $ 728 |
Series E Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares Issued (in shares) | 6 | 6 |
Shares Outstanding (in shares) | 6 | 6 |
Liquidation Preference Per Share (USD per share) | $ 100,000 | $ 100,000 |
Liquidation Preference | $ 600 | $ 600 |
Carrying Value | $ 591 | $ 591 |
Accumulated Other Comprehensi61
Accumulated Other Comprehensive Income (Components of Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Other comprehensive income (loss) before tax | ||||
Net unrealized gain (loss) | $ 29 | $ 168 | $ 81 | $ 189 |
Reclassification of net unrealized loss on securities transferred to held to maturity | 0 | 0 | 227 | 0 |
Other reclassifications included in other revenue | (6) | (3) | (7) | (3) |
Change in net unrealized gain (loss) on held to maturity securities: | ||||
Reclassification of net unrealized loss on securities transferred from available for sale | 0 | 0 | (227) | 0 |
Amortization of amounts previously recorded upon transfer from available for sale | 9 | 0 | 11 | 0 |
Other | 0 | 0 | (3) | 1 |
Other comprehensive income (loss), before tax | 32 | 165 | 82 | 187 |
Other comprehensive income (loss), tax effect | ||||
Net unrealized gain (loss) | (11) | (63) | (30) | (71) |
Reclassification of net unrealized loss on securities transferred to held to maturity | (85) | 0 | ||
Other reclassifications included in other revenue | 3 | 1 | 3 | 1 |
Change in net unrealized gain (loss) on held to maturity securities: | ||||
Reclassification of net unrealized loss on securities transferred from available for sale (1) | 85 | 0 | ||
Amortization of amounts previously recorded upon transfer from available for sale | (4) | 0 | (5) | 0 |
Other | 1 | 0 | ||
Other comprehensive (loss) income, tax effect | (12) | (62) | (31) | (70) |
Other comprehensive income (loss), net of tax | ||||
Net unrealized gain (loss) | 18 | 105 | 51 | 118 |
Reclassification of net unrealized loss on securities transferred to held to maturity | 142 | 0 | ||
Other reclassifications included in other revenue | (3) | (2) | (4) | (2) |
Change in net unrealized gain (loss) on held to maturity securities: | ||||
Reclassification of net unrealized loss on securities transferred from available for sale | (142) | 0 | ||
Amortization of amounts previously recorded upon transfer from available for sale | 5 | 0 | 6 | 0 |
Other | (2) | 1 | ||
Other comprehensive income (loss), net of tax | $ 20 | $ 103 | $ 51 | $ 117 |
Accumulated Other Comprehensi62
Accumulated Other Comprehensive Income (Accumulated Other Comprehensive Income Balances) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated Other Comprehensive Income | ||||
Beginning Balance | $ (163) | $ (134) | ||
Other net changes | $ 20 | $ 103 | 51 | 117 |
Ending Balance | $ (112) | $ (17) | (112) | (17) |
Net unrealized gain (loss) on available for sale securities [Member] | ||||
Accumulated Other Comprehensive Income | ||||
Other net changes | 51 | 116 | ||
Other [Member] | ||||
Accumulated Other Comprehensive Income | ||||
Other net changes | (2) | $ 1 | ||
Reclassification of Securities Transferred to Held to Maturity [Member] | ||||
Accumulated Other Comprehensive Income | ||||
Other net changes | 142 | |||
Other Reclassifications in Other Revenue [Member] | ||||
Accumulated Other Comprehensive Income | ||||
Other net changes | (4) | |||
Reclassification of Securities Transferred from Available for Sale [Member] | ||||
Accumulated Other Comprehensive Income | ||||
Other net changes | (142) | |||
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale [Member] | ||||
Accumulated Other Comprehensive Income | ||||
Other net changes | $ 6 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Earnings Per Share [Abstract] | |||||
Net income | $ 575 | $ 452 | $ 1,139 | $ 864 | |
Preferred stock dividends and other | [1] | (45) | (46) | (84) | (66) |
Net Income Available to Common Stockholders | $ 530 | $ 406 | $ 1,055 | $ 798 | |
Weighted-average common shares outstanding — basic (shares) | 1,338 | 1,322 | 1,337 | 1,322 | |
Common stock equivalent shares related to stock incentive plans (shares) | 13 | 11 | 14 | 9 | |
Weighted-average common shares outstanding — diluted (shares) | [2] | 1,351 | 1,333 | 1,351 | 1,331 |
Basic EPS (USD per share) | $ 0.40 | $ 0.31 | $ 0.79 | $ 0.60 | |
Diluted EPS (USD per share) | $ 0.39 | $ 0.30 | $ 0.78 | $ 0.60 | |
Antidilutive stock options and restricted stock awards excluded from the calculation of diluted EPS (in shares) | 9 | 19 | 10 | 22 | |
[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 9 million and 19 million shares for the second quarters of 2017 and 2016, respectively, and 10 million and 22 million shares for the first halves of 2017 and 2016, respectively. |
Regulatory Requirements (Regula
Regulatory Requirements (Regulatory Capital and Ratios) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
CSC [Member] | ||
Common Equity Tier 1 Risk-Based Capital | ||
Actual Amount | $ 13,589 | $ 12,574 |
Actual Ratio | 19.50% | 18.40% |
Minimum Capital Requirement Amount | $ 3,133 | $ 3,068 |
Minimum Capital Requirement Ratio | 4.50% | 4.50% |
Tier 1 Risk-Based Capital | ||
Actual Amount | $ 16,372 | $ 15,357 |
Actual Ratio | 23.50% | 22.50% |
Minimum Capital Requirement Amount | $ 4,177 | $ 4,091 |
Minimum Capital Requirement Ratio | 6.00% | 6.00% |
Total Risk-Based Capital | ||
Actual Amount | $ 16,400 | $ 15,384 |
Actual Ratio | 23.60% | 22.60% |
Minimum Capital Requirement Amount | $ 5,570 | $ 5,454 |
Minimum Capital Requirement Ratio | 8.00% | 8.00% |
Tier 1 Leverage | ||
Actual Amount | $ 16,372 | $ 15,357 |
Actual Ratio | 7.40% | 7.20% |
Minimum Capital Requirement Amount | $ 8,843 | $ 8,516 |
Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Schwab Bank [Member] | ||
Common Equity Tier 1 Risk-Based Capital | ||
Actual Amount | $ 12,987 | $ 11,878 |
Actual Ratio | 21.00% | 19.80% |
Minimum to be Well Capitalized Amount | $ 4,015 | $ 3,894 |
Minimum to be Well Capitalized Ratio | 6.50% | 6.50% |
Minimum Capital Requirement Amount | $ 2,779 | $ 2,696 |
Minimum Capital Requirement Ratio | 4.50% | 4.50% |
Tier 1 Risk-Based Capital | ||
Actual Amount | $ 12,987 | $ 11,878 |
Actual Ratio | 21.00% | 19.80% |
Minimum to be Well Capitalized Amount | $ 4,941 | $ 4,793 |
Minimum to be Well Capitalized Ratio | 8.00% | 8.00% |
Minimum Capital Requirement Amount | $ 3,706 | $ 3,595 |
Minimum Capital Requirement Ratio | 6.00% | 6.00% |
Total Risk-Based Capital | ||
Actual Amount | $ 13,014 | $ 11,904 |
Actual Ratio | 21.10% | 19.90% |
Minimum to be Well Capitalized Amount | $ 6,176 | $ 5,992 |
Minimum to be Well Capitalized Ratio | 10.00% | 10.00% |
Minimum Capital Requirement Amount | $ 4,941 | $ 4,793 |
Minimum Capital Requirement Ratio | 8.00% | 8.00% |
Tier 1 Leverage | ||
Actual Amount | $ 12,987 | $ 11,878 |
Actual Ratio | 7.30% | 7.00% |
Minimum to be Well Capitalized Amount | $ 8,934 | $ 8,456 |
Minimum to be Well Capitalized Ratio | 5.00% | 5.00% |
Minimum Capital Requirement Amount | $ 7,148 | $ 6,765 |
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 | Jun. 30, 2017 | Dec. 31, 2016 |
Schwab [Member] | ||
Compliance with Regulatory Capital Requirements for Broker Dealers [Line Items] | ||
Net Capital | $ 1,951,000 | $ 1,846,000 |
Minimum Net Capital Required | 250 | 250 |
2% of Aggregate Debit Balances | 385,000 | 355,000 |
Net Capital in Excess of Required Capital | 1,566,000 | 1,491,000 |
OptionsXpress [Member] | ||
Compliance with Regulatory Capital Requirements for Broker Dealers [Line Items] | ||
Net Capital | 290,000 | 269,000 |
Minimum Net Capital Required | 1,000 | 1,000 |
2% of Aggregate Debit Balances | 7,000 | 8,000 |
Net Capital in Excess of Required Capital | $ 283,000 | $ 261,000 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2017segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information (Financial
Segment Information (Financial Information for Reportable Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Net Revenues: | |||||
Asset management and administration fees | [1] | $ 845 | $ 757 | $ 1,668 | $ 1,456 |
Net interest revenue | 1,053 | 798 | 2,053 | 1,570 | |
Trading revenue | 157 | 201 | 349 | 433 | |
Other | 75 | 70 | 141 | 133 | |
Provision for loan losses | 0 | 2 | 0 | 0 | |
Total net revenues | 2,130 | 1,828 | 4,211 | 3,592 | |
Expenses Excluding Interest | 1,221 | 1,108 | 2,459 | 2,217 | |
Income before taxes on income | 909 | 720 | 1,752 | 1,375 | |
Investor Services [Member] | |||||
Net Revenues: | |||||
Asset management and administration fees | 582 | 514 | 1,148 | 986 | |
Net interest revenue | 795 | 628 | 1,548 | 1,241 | |
Trading revenue | 98 | 129 | 217 | 272 | |
Other | 55 | 51 | 105 | 97 | |
Provision for loan losses | 0 | 2 | 0 | 0 | |
Total net revenues | 1,530 | 1,324 | 3,018 | 2,596 | |
Expenses Excluding Interest | 914 | 834 | 1,844 | 1,671 | |
Income before taxes on income | 616 | 490 | 1,174 | 925 | |
Advisor Services [Member] | |||||
Net Revenues: | |||||
Asset management and administration fees | 263 | 243 | 520 | 470 | |
Net interest revenue | 258 | 170 | 505 | 329 | |
Trading revenue | 59 | 72 | 132 | 161 | |
Other | 20 | 19 | 36 | 36 | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Total net revenues | 600 | 504 | 1,193 | 996 | |
Expenses Excluding Interest | 307 | 274 | 615 | 546 | |
Income before taxes on income | $ 293 | $ 230 | $ 578 | $ 450 | |
[1] | Includes the effect of fee waivers of $1 million and $55 million during the second quarters of 2017 and 2016, respectively, and $9 million and $152 million during the first halves of 2017 and 2016, respectively, relating to Schwab-sponsored money market funds. |