Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 29, 2019 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-11921 | |
Entity Registrant Name | E*TRADE Financial Corporation | |
Entity Central Index Key | 0001015780 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-2844166 | |
Entity Address, Address Line One | 11 Times Square | |
Entity Address, Address Line Two | 32nd Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10036 | |
City Area Code | 646 | |
Local Phone Number | 521-4300 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | ETFC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 225,915,870 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF INCOME - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue: | ||||
Interest income | $ 521 | $ 514 | $ 1,636 | $ 1,471 |
Interest expense | (66) | (48) | (199) | (107) |
Net interest income | 455 | 466 | 1,437 | 1,364 |
Gains (losses) on securities and other, net | 16 | 17 | (37) | 42 |
Other revenue | 11 | 12 | 35 | 34 |
Total non-interest income | 312 | 254 | 770 | 774 |
Total net revenue | 767 | 720 | 2,207 | 2,138 |
Provision (benefit) for loan losses | (12) | (34) | (32) | (74) |
Non-interest expense: | ||||
Compensation and benefits | 167 | 157 | 499 | 469 |
Advertising and market development | 41 | 45 | 143 | 152 |
Clearing and servicing | 36 | 28 | 98 | 94 |
Professional services | 27 | 23 | 75 | 70 |
Occupancy and equipment | 34 | 29 | 98 | 89 |
Communications | 26 | 30 | 70 | 89 |
Depreciation and amortization | 23 | 25 | 65 | 70 |
FDIC insurance premiums | 3 | 8 | 11 | 26 |
Amortization of other intangibles | 16 | 12 | 46 | 34 |
Restructuring and acquisition-related activities | 2 | 4 | 2 | 6 |
Losses on early extinguishment of debt | 0 | 4 | 0 | 4 |
Other non-interest expenses | 24 | 15 | 65 | 56 |
Total non-interest expense | 399 | 380 | 1,172 | 1,159 |
Income before income tax expense | 380 | 374 | 1,067 | 1,053 |
Income tax expense | 106 | 89 | 284 | 271 |
Net income | 274 | 285 | 783 | 782 |
Preferred stock dividends | 20 | 24 | 40 | 36 |
Net income available to common shareholders | $ 254 | $ 261 | $ 743 | $ 746 |
Basic earnings per common share (in dollars per share) | $ 1.08 | $ 1.01 | $ 3.08 | $ 2.84 |
Diluted earnings per common share (in dollars per share) | $ 1.08 | $ 1 | $ 3.07 | $ 2.82 |
Basic (in thousands) | 235,829 | 259,498 | 241,657 | 263,292 |
Diluted (in thousands) | 236,313 | 260,661 | 242,199 | 264,433 |
Commissions [Member] | ||||
Non-interest Income | ||||
Revenue | $ 122 | $ 117 | $ 365 | $ 375 |
Fees and service charges [Member] | ||||
Non-interest Income | ||||
Revenue | $ 163 | $ 108 | $ 407 | $ 323 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 274 | $ 285 | $ 783 | $ 782 |
Available-for-sale securities: | ||||
Unrealized gains (losses), net | 43 | (86) | 219 | (265) |
Reclassification into earnings, net | (9) | (8) | 32 | (23) |
Transfer of held-to-maturity securities to available-for-sale securities | 0 | 0 | 0 | 6 |
Net change from available-for-sale securities | 34 | (94) | 251 | (282) |
Other comprehensive income (loss) | 34 | (94) | 251 | (282) |
Comprehensive income | $ 308 | $ 191 | $ 1,034 | $ 500 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and equivalents | $ 493 | $ 2,333 |
Cash segregated under federal or other regulations | 1,365 | 1,011 |
Available-for-sale securities | 21,020 | 23,153 |
Held-to-maturity securities (fair value of $21,912 and $21,491 at September 30, 2019 and December 31, 2018, respectively) | 21,542 | 21,884 |
Margin receivables | 9,859 | 9,560 |
Loans receivable, net (net of allowance for loan losses of $27 and $37 at September 30, 2019 and December 31, 2018, respectively) | 1,747 | 2,103 |
Receivables from brokers, dealers and clearing organizations | 1,038 | 760 |
Property and equipment, net | 338 | 281 |
Goodwill | 2,485 | 2,485 |
Other intangibles, net | 446 | 491 |
Other assets | 1,374 | 942 |
Total assets | 61,707 | 65,003 |
Liabilities: | ||
Deposits | 40,382 | 45,313 |
Customer payables | 11,183 | 10,117 |
Payables to brokers, dealers and clearing organizations | 1,091 | 948 |
Corporate debt | 1,410 | 1,409 |
Other liabilities | 1,072 | 654 |
Total liabilities | 55,138 | 58,441 |
Commitments and contingencies (see Note 14) | ||
Shareholders’ equity: | ||
Preferred stock, $0.01 par value, 1,000,000 shares authorized, 403,000 shares issued and outstanding at both September 30, 2019 and December 31, 2018; aggregate liquidation preference of $700 at both September 30, 2019 and December 31, 2018 | 689 | 689 |
Common stock, $0.01 par value, 400,000,000 shares authorized, 226,795,480 and 246,495,174 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively | 2 | 2 |
Additional paid-in-capital | 4,578 | 5,462 |
Retained earnings | 1,324 | 684 |
Accumulated other comprehensive loss | (24) | (275) |
Total shareholders’ equity | 6,569 | 6,562 |
Total liabilities and shareholders’ equity | $ 61,707 | $ 65,003 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEET (Parentheticals) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Held-to-maturity securities, fair value | $ 21,912 | $ 21,491 |
Allowance for loan losses | $ 27 | $ 37 |
Shareholders’ equity: | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 403,000 | 403,000 |
Preferred stock, shares outstanding (in shares) | 403,000 | 403,000 |
Preferred stock, liquidation preference, value | $ 700 | $ 700 |
Common stock par value | $ 0.01 | $ 0.01 |
Common stock shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock shares issued (in shares) | 226,795,480 | 246,495,174 |
Common stock shares outstanding (in shares) | 226,795,480 | 246,495,174 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss | Preferred Class A | Preferred Class ARetained Earnings (Accumulated Deficit) | Preferred Class B | Preferred Class BRetained Earnings (Accumulated Deficit) |
Balance, at Dec. 31, 2017 | $ 6,931 | $ 689 | $ 3 | $ 6,582 | $ (317) | $ (26) | ||||
Balance, (in shares) at Dec. 31, 2017 | 267 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Cumulative effect of accounting change | Hedge accounting adoption | 7 | (7) | ||||||||
Cumulative effect of accounting change | Reclassification of tax effects due to federal tax reform | 14 | (14) | ||||||||
Net income | 247 | 247 | ||||||||
Other comprehensive income (loss) | (129) | (129) | ||||||||
Preferred stock dividend declared | $ (12) | $ (12) | ||||||||
Repurchases of common stock | (140) | (140) | ||||||||
Repurchases of common stock, shares | (3) | |||||||||
Share-based compensation | 10 | 10 | ||||||||
Other common stock activity, shares | 1 | |||||||||
Other common stock activity | (18) | (18) | ||||||||
Balance, at Mar. 31, 2018 | 6,889 | 689 | $ 3 | 6,434 | (61) | (176) | ||||
Balance, (in shares) at Mar. 31, 2018 | 265 | |||||||||
Balance, at Dec. 31, 2017 | 6,931 | 689 | $ 3 | 6,582 | (317) | (26) | ||||
Balance, (in shares) at Dec. 31, 2017 | 267 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 782 | |||||||||
Other comprehensive income (loss) | (282) | |||||||||
Preferred stock dividend declared | (36) | |||||||||
Balance, at Sep. 30, 2018 | 6,766 | 689 | $ 3 | 5,953 | 450 | (329) | ||||
Balance, (in shares) at Sep. 30, 2018 | 257 | |||||||||
Balance, at Mar. 31, 2018 | 6,889 | 689 | $ 3 | 6,434 | (61) | (176) | ||||
Balance, (in shares) at Mar. 31, 2018 | 265 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 250 | 250 | ||||||||
Other comprehensive income (loss) | (59) | (59) | ||||||||
Repurchases of common stock | (189) | (189) | ||||||||
Repurchases of common stock, shares | (3) | |||||||||
Share-based compensation | 12 | 12 | ||||||||
Balance, at Jun. 30, 2018 | 6,903 | 689 | $ 3 | 6,257 | 189 | (235) | ||||
Balance, (in shares) at Jun. 30, 2018 | 262 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 285 | 285 | ||||||||
Other comprehensive income (loss) | (94) | (94) | ||||||||
Preferred stock dividend declared | (12) | (12) | $ (12) | $ (12) | ||||||
Repurchases of common stock | (309) | (309) | ||||||||
Repurchases of common stock, shares | (5) | |||||||||
Share-based compensation | 13 | 13 | ||||||||
Other common stock activity | (8) | (8) | ||||||||
Balance, at Sep. 30, 2018 | 6,766 | 689 | $ 3 | 5,953 | 450 | (329) | ||||
Balance, (in shares) at Sep. 30, 2018 | 257 | |||||||||
Balance, at Dec. 31, 2018 | 6,562 | 689 | $ 2 | 5,462 | 684 | (275) | ||||
Balance, (in shares) at Dec. 31, 2018 | 246 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 290 | 290 | ||||||||
Other comprehensive income (loss) | 105 | 105 | ||||||||
Common stock dividends ($0.14 per share) | (35) | (35) | ||||||||
Preferred stock dividend declared | (12) | (12) | (8) | (8) | ||||||
Repurchases of common stock | (120) | (120) | ||||||||
Repurchases of common stock, shares | (2) | |||||||||
Share-based compensation | 13 | 13 | ||||||||
Other common stock activity, shares | 1 | |||||||||
Other common stock activity | (13) | (13) | ||||||||
Balance, at Mar. 31, 2019 | 6,782 | 689 | $ 2 | 5,342 | 919 | (170) | ||||
Balance, (in shares) at Mar. 31, 2019 | 245 | |||||||||
Balance, at Dec. 31, 2018 | 6,562 | 689 | $ 2 | 5,462 | 684 | (275) | ||||
Balance, (in shares) at Dec. 31, 2018 | 246 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 783 | |||||||||
Other comprehensive income (loss) | 251 | |||||||||
Preferred stock dividend declared | (40) | |||||||||
Balance, at Sep. 30, 2019 | 6,569 | 689 | $ 2 | 4,578 | 1,324 | (24) | ||||
Balance, (in shares) at Sep. 30, 2019 | 227 | |||||||||
Balance, at Mar. 31, 2019 | 6,782 | 689 | $ 2 | 5,342 | 919 | (170) | ||||
Balance, (in shares) at Mar. 31, 2019 | 245 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 219 | 219 | ||||||||
Other comprehensive income (loss) | 112 | 112 | ||||||||
Common stock dividends ($0.14 per share) | (34) | (34) | ||||||||
Repurchases of common stock | (222) | (222) | ||||||||
Repurchases of common stock, shares | (5) | |||||||||
Share-based compensation | 13 | 13 | ||||||||
Balance, at Jun. 30, 2019 | 6,870 | 689 | $ 2 | 5,133 | 1,104 | (58) | ||||
Balance, (in shares) at Jun. 30, 2019 | 240 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 274 | 274 | ||||||||
Other comprehensive income (loss) | 34 | 34 | ||||||||
Common stock dividends ($0.14 per share) | (34) | (34) | ||||||||
Preferred stock dividend declared | $ (12) | $ (12) | $ (8) | $ (8) | ||||||
Repurchases of common stock | (566) | (566) | ||||||||
Repurchases of common stock, shares | (13) | |||||||||
Share-based compensation | 12 | 12 | ||||||||
Other common stock activity | (1) | (1) | ||||||||
Balance, at Sep. 30, 2019 | $ 6,569 | $ 689 | $ 2 | $ 4,578 | $ 1,324 | $ (24) | ||||
Balance, (in shares) at Sep. 30, 2019 | 227 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | ||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | |
Dividend per share [Abstract] | |||||
Dividends declared per common share | $ 0.14 | $ 0.14 | $ 0.14 | $ 0 | $ 0 |
Preferred Class A [Member] | |||||
Dividend per share [Abstract] | |||||
Preferred stock dividend declared, per share | 29.38 | 0 | 29.38 | 29.38 | 29.38 |
Preferred Class B [Member] | |||||
Dividend per share [Abstract] | |||||
Preferred stock dividend declared, per share | $ 2,650 | $ 0 | $ 2,650 | $ 4,107.50 | $ 0 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 783 | $ 782 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision (benefit) for loan losses | (32) | (74) |
Depreciation and amortization (including amortization and accretion on investment securities) | 168 | 192 |
(Gains) losses on securities and other, net | 37 | (42) |
Losses on early extinguishment of debt | 0 | (4) |
Share-based compensation | 38 | 35 |
Deferred tax expense | 206 | 253 |
Other | (1) | 10 |
Net effect of changes in assets and liabilities: | ||
(Increase) decrease in receivables from brokers, dealers and clearing organizations | (278) | 392 |
Increase in margin receivables | (299) | (2,113) |
(Increase) decrease in other assets | (189) | 349 |
Increase in payables to brokers, dealers and clearing organizations | 143 | 303 |
Increase in customer payables | 1,066 | 1,085 |
(Decrease) increase in other liabilities | (673) | 47 |
Net cash provided by operating activities | 969 | 1,223 |
Cash flows from investing activities: | ||
Purchases of available-for-sale securities | (7,456) | (6,966) |
Proceeds from sales of available-for-sale securities | 9,720 | 6,293 |
Proceeds from maturities of and principal payments on available-for-sale securities | 1,174 | 1,555 |
Purchases of held-to-maturity securities | (3,860) | (3,684) |
Proceeds from maturities of and principal payments on held-to-maturity securities | 4,176 | 1,781 |
Proceeds from sales of loans | 0 | 30 |
Decrease in loans receivable | 376 | 451 |
Capital expenditures for property and equipment | (117) | (78) |
Securities purchased under agreement to resell | (250) | 0 |
Proceeds from sale of real estate owned and repossessed assets | 10 | 19 |
Acquisitions, net of cash acquired | 0 | (36) |
Net cash flow from derivative contracts | (196) | 200 |
Other | (28) | (32) |
Net cash provided by (used in) investing activities | 3,549 | (467) |
Cash flows from financing activities: | ||
Decrease in deposits | (4,931) | (458) |
Common stock dividends | (103) | 0 |
Preferred stock dividends | (40) | (36) |
Net increase in advances from FHLB | 0 | 50 |
Proceeds from issuance of senior notes | 0 | 420 |
Payments on trust preferred securities | 0 | (413) |
Repurchases of common stock | (908) | (638) |
Other | (22) | (32) |
Net cash used in financing activities | (6,004) | (1,107) |
Decrease in cash, cash equivalents and segregated cash | (1,486) | (351) |
Cash, cash equivalents and segregated cash, beginning of period | 3,344 | 1,803 |
Cash, cash equivalents and segregated cash, end of period | 1,858 | 1,452 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||
Cash and equivalents, end of period | 493 | 596 |
Segregated cash, end of period | 1,365 | 856 |
Cash, cash equivalents and segregated cash, end of period | 1,858 | 1,452 |
Supplemental disclosures: | ||
Cash paid for interest | 199 | 106 |
Cash paid for income taxes, net of refunds | 52 | 9 |
Right-of-use assets recognized upon adoption of new lease standard | 193 | 0 |
Right-of-use assets obtained during the period | 36 | 0 |
Non-cash investing and financing activities: | ||
Transfers from loans to other real estate owned and repossessed assets | 13 | 13 |
Transfer of available-for-sale securities to held-to-maturity securities | 0 | 1,161 |
Transfer of held-to-maturity securities to available-for-sale securities | $ 0 | $ 4,672 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1—ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization E*TRADE Financial Corporation is a financial services company that provides brokerage and related products and services for traders, investors, stock plan administrators and participants, and RIAs. The Company also provides investor-focused banking products, including sweep deposit accounts insured by the FDIC, to customers. The Company's most significant, wholly-owned subsidiaries are described below: • E*TRADE Securities is a registered broker-dealer that clears and settles customer transactions • E*TRADE Bank is a federally chartered savings bank that provides FDIC insurance on certain qualifying amounts of customer deposits and provides other banking and cash management capabilities • E*TRADE Savings Bank, a subsidiary of E*TRADE Bank, is a federally chartered savings bank that provides FDIC insurance on certain qualifying amounts of customer deposits and provides custody solutions for RIAs • E*TRADE Financial Corporate Services is a provider of software and services for managing equity compensation plans to our corporate clients • E*TRADE Futures is a registered non-clearing FCM that provides retail futures transaction capabilities for our customers • E*TRADE Capital Management is an RIA that provides investment advisory services for our customers Basis of Presentation The condensed consolidated financial statements, also referred to herein as the consolidated financial statements, include the accounts of the Company and its majority-owned subsidiaries as determined under the voting interest model. Entities in which the Company has the ability to exercise significant influence but in which the Company does not possess control are generally accounted for by the equity method. Entities in which the Company does not have the ability to exercise significant influence are generally carried at cost. The Company also evaluates its initial and continuing involvement with certain entities to determine if the Company is required to consolidate the entities under the variable interest entity (VIE) model. This evaluation is based on a qualitative assessment of whether the Company is the primary beneficiary of a VIE, which requires the Company to possess both: 1) the power to direct the activities that most significantly impact the economic performance of the VIE; and 2) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. There are no investments in which the Company represents the primary beneficiary of a VIE; therefore, there are no consolidated VIEs included for all periods presented. The Company's consolidated financial statements are prepared in accordance with GAAP. Intercompany accounts and transactions are eliminated in consolidation. These consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary to present fairly the financial position, results of operations and cash flows for the periods presented and should be read in conjunction with our 2018 Annual Report . Use of Estimates Preparing the Company's consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and related notes for the periods presented. Actual results could differ from management’s estimates. Certain significant accounting policies are critical because they are based on estimates and assumptions that require complex and subjective judgments by management including the allowance for loan losses, valuation and impairment of goodwill and acquired intangible assets, and income taxes. Management also makes estimates in recognizing accrued operating expenses and other liabilities. These liabilities are impacted by estimates for litigation and regulatory matters as well as estimates related to general operating expenses, such as incentive compensation and market data usage within communications expense. Management estimates reflect the liabilities deemed probable at the balance sheet date as determined as part of the Company's ongoing evaluations based on available information. Adoption of New Accounting Standards Accounting for Leases In February 2016, the FASB amended the guidance on accounting for leases. The new guidance required lessees to recognize right-of-use (ROU) assets and lease liabilities on the balance sheet for the rights and obligations created by all qualifying leases. The recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee remains substantially unchanged and depends on classification as a finance or operating lease. The Company adopted the new guidance beginning on January 1, 2019 and elected to use the effective date as the date of initial application. As such, restated financial information and the additional disclosures required under the new standard will not be provided for the comparative periods presented. The new guidance also requires quantitative and qualitative disclosures that provide information about the amounts related to leasing arrangements recorded in the consolidated financial statements. For further information, see Note 10—Lease Arrangements . The Company elected to apply the "package of practical expedients," which permits it to not reassess prior conclusions on existing leases regarding lease identification, lease classification and initial direct costs. In addition, the Company has elected to apply the short-term lease exception for lease arrangements with maximum lease terms of 12 months or less. The Company elected to not apply the use-of-hindsight practical expedient, and the practical expedient relating to land easements is not applicable. Adoption of the standard did not have a material impact on the Company’s results of operations or cash flows. At adoption, the Company recognized lease liabilities of $211 million , representing the present value of the remaining minimum fixed lease payments based on the incremental borrowing rates as of December 31, 2018 . Changes in lease liabilities are based on current period interest expense and cash payments. The Company also recognized ROU assets of $193 million at adoption, which represents the measurement of the lease liabilities, prepaid lease payments made to lessors, initial direct costs incurred by the Company and lease incentives received. Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes In October 2018, the FASB amended the guidance on hedge accounting. The amended guidance adds the OIS rate based on the SOFR to the list of permitted benchmark interest rates for hedge accounting purposes. The amended guidance became effective on January 1, 2019, and the Company adopted the guidance on a prospective basis for qualifying new or redesignated hedging relationships entered into on or after the date of adoption. The adoption did not have a material impact on the Company's financial condition, results of operations or cash flows. New Accounting Standards Not Yet Adopted Accounting for Credit Losses In June 2016, the FASB amended the guidance on accounting for credit losses and has subsequently issued clarifications and improvements. The amended guidance requires measurement of an allowance for credit losses for financial instruments, including loans and debt securities, and other commitments to extend credit held at the reporting date. For financial assets measured at amortized cost, factors such as historical performance, current conditions, and reasonable and supportable forecasts, including expected charge-off recoveries, will be used to estimate expected credit losses. The amended guidance will also result in credit losses on impaired available-for-sale debt securities being recorded through an allowance for credit losses. The FASB issued additional amended guidance during the second quarter of 2019 that clarified that the CECL standard allows for subsequent increases in the fair value of collateral for collateral-dependent loans to be recognized up to the amount previously charged-off. A loan is considered to be collateral-dependent when foreclosure is probable or when repayment is expected to be provided substantially through the sale of the underlying collateral when the borrower is experiencing financial difficulty. Additional amended transition guidance issued during the second quarter of 2019 allows entities to elect the fair value option on certain financial instruments, on an instrument-by-instrument basis; however, this fair value option election does not apply to held-to-maturity debt securities. The new guidance will be effective for interim and annual periods beginning January 1, 2020 and early adoption is permitted. The Company has continued to make progress in developing credit loss estimation methods for the mortgage loan portfolio. The Company does not expect that credit losses for the investment security portfolio, margin receivables, securities-based lending activities and other financial assets held at amortized cost will be material based on its current analysis and industry views. As of September 30, 2019, the Company expects to recognize an after-tax benefit related to mortgage loans of approximately $75 to $100 million as an adjustment to opening retained earnings at adoption on January 1, 2020. The expected benefit relates to the fair value of the underlying collateral for mortgage loans that were determined to be collateral-dependent and previously written down to the fair value of the underlying collateral. This adoption impact will be presented on the balance sheet as a “negative allowance” associated with these loans. When estimating the fair value of collateral, property valuations for these one- to four- family and home equity loans are based on the most recent "as is" property valuation data available, which may include appraisals, broker price opinions, automated valuation models or updated values using home price indices. These property valuations are then reduced for qualifying estimated costs to sell. These costs do not include carrying costs or other disallowed adjustments, such as estimates for prolonged foreclosure proceedings associated with certain jurisdictions. The expected impact includes the expected credit losses related to the remaining mortgage loans. The Company employed a probability of default and loss given default model for determining the CECL allowance for these mortgage loans, which utilized prepayment forecasts, loan amortization calculations, and other internally derived and externally sourced data and assumptions. Key inputs for the forecast included US home prices and unemployment data. The CECL impact for this portfolio is not expected to be material based on the seasoning of the Company’s mortgage loan portfolio and the credit quality of the remaining loans. The Company utilized an externally provided macroeconomic forecast over the remaining life of the loans. This forecast includes a forward-looking view of macroeconomic factors over the next two to five years, after which the macroeconomic factors revert to externally provided long-term equilibrium values, rates, or patterns that do not include specific predictions for the economy. The Company's focus for the remainder of 2019 will be the continued development and refinement of its credit loss estimation methods, the development of policies and procedures in support of implementation, testing and validation of credit loss estimation methods, and the completion of parallel runs of credit loss modeling. The Company's evaluation of the impact of the guidance contemplates the recent performance of the run-off legacy mortgage and consumer loan portfolio and the credit profile of the current investment securities portfolio; however, the impact will depend on the current and expected macroeconomic conditions and the nature and characteristics of financial assets held by the Company on the date of adoption. Simplifying the Test for Goodwill Impairment In January 2017, the FASB amended the guidance to simplify the test for goodwill impairment by eliminating Step 2 from the goodwill impairment test. The amended guidance requires the Company to perform its annual goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge would be recognized at the amount by which the carrying amount exceeds the fair value of the reporting unit; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Income tax effects resulting from any tax deductible goodwill should be considered when measuring the goodwill impairment loss, if applicable. The Company will still have the option to perform a qualitative assessment to conclude whether it is more likely than not that the carrying amount of the Company exceeds its fair value. The guidance will be effective for interim and annual periods beginning January 1, 2020, and must be applied prospectively. Early adoption is permitted. Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract In August 2018, the FASB amended the guidance on accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. The amended guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new guidance will be effective for interim and annual periods beginning on January 1, 2020, and should be applied either retrospectively or prospectively. The Company will adopt prospectively and is currently finalizing modifications to the accounting processes necessary for adoption. Codification Improvements Related to Credit Losses, Financial Instruments, Derivatives and Hedging In April 2019, the FASB clarified recently released guidance related to credit losses, financial instruments, derivatives and hedging. The FASB has an ongoing project on its agenda for improving the FASB's Accounting Standards Codification or correcting its unintended application. The guidance will be effective for interim and annual periods beginning January 1, 2020. The Company is currently evaluating the impact of these clarifications on the Company's financial condition, results of operations and cash flows. |
Net Revenue
Net Revenue | 9 Months Ended |
Sep. 30, 2019 | |
Revenues [Abstract] | |
NET REVENUE DISCLOSURE | NOTE 2—NET REVENUE The following table presents the significant components of total net revenue (dollars in millions): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net interest income $ 455 $ 466 $ 1,437 $ 1,364 Commissions 122 117 365 375 Fees and service charges 163 108 407 323 Gains (losses) on securities and other, net 16 17 (37 ) 42 Other revenue 11 12 35 34 Total net revenue (1) $ 767 $ 720 $ 2,207 $ 2,138 (1) Contract balances and transaction price allocated to remaining performance obligations were not material for the periods presented. In October 2019, we announced the elimination of retail commissions for online US listed stock, ETF, and options trades. We also reduced the options contract charge to $0.65 per contract for all traders while maintaining our active trader pricing at $0.50 per contract. Interest Income and Interest Expense The following table presents the significant components of interest income and interest expense (dollars in millions): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Interest income: Cash and equivalents $ 2 $ 2 $ 8 $ 7 Cash segregated under federal or other regulations 7 4 19 11 Investment securities 324 315 1,057 908 Margin receivables 120 130 376 351 Loans 25 32 81 98 Broker-related receivables and other 5 4 12 12 Subtotal interest income 483 487 1,553 1,387 Other interest revenue (1) 38 27 83 84 Total interest income 521 514 1,636 1,471 Interest expense: Sweep deposits 11 14 49 23 Savings deposits 27 2 65 3 Customer payables 7 8 24 13 Broker-related payables and other 2 3 4 7 Other borrowings 1 6 7 21 Corporate debt 14 13 42 32 Subtotal interest expense 62 46 191 99 Other interest expense (2) 4 2 8 8 Total interest expense 66 48 199 107 Net interest income $ 455 $ 466 $ 1,437 $ 1,364 (1) Other interest revenue is earned on certain securities loaned balances. Interest expense incurred on other securities loaned balances is presented on the broker-related payables and other line item above. (2) Other interest expense is incurred on certain securities borrowed balances. Interest income earned on other securities borrowed balances is presented on the broker-related receivables and other line item above. Fees and Service Charges The following table presents the significant components of fees and service charges (dollars in millions): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Fees and service charges: Money market funds and sweep deposits revenue $ 62 $ 18 $ 106 $ 53 Order flow revenue 46 40 134 130 Advisor management and custody fees 19 19 56 46 Mutual fund service fees 13 13 38 36 Foreign exchange revenue 8 7 24 21 Reorganization fees 5 3 18 10 Other fees and service charges 10 8 31 27 Total fees and service charges $ 163 $ 108 $ 407 $ 323 |
Fair Value Disclosures
Fair Value Disclosures | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | NOTE 3—FAIR VALUE DISCLOSURES Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company may use various valuation approaches, including market, income and/or cost approaches. The fair value hierarchy requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is a market-based measure considered from the perspective of a market participant. Accordingly, even when market assumptions are not readily available, the Company’s own assumptions reflect those that market participants would use in pricing the asset or liability at the measurement date. The fair value measurement accounting guidance describes the following three levels used to classify fair value measurements: • Level 1 - unadjusted quoted prices in active markets for identical assets or liabilities that are accessible by the Company • Level 2 - quoted prices for similar assets and liabilities in an active market, quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly • Level 3 - unobservable inputs that are significant to the fair value of the assets or liabilities The availability of observable inputs can vary and in certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to a fair value measurement requires judgment and consideration of factors specific to the asset or liability. Recurring Fair Value Measurement Techniques Agency Debt and Mortgage-backed Securities The Company’s agency mortgage-backed securities portfolio is comprised of debt securities which are guaranteed by US government sponsored enterprises and federal agencies. The fair value of agency mortgage-backed securities was determined using a market approach with quoted market prices, recent transactions and spread data for identical or similar instruments. Agency mortgage-backed securities were categorized in Level 2 of the fair value hierarchy. The fair value measurements of agency debentures and other agency debt securities were determined using market and income approaches along with the Company’s own trading activities for identical or similar instruments and were categorized in Level 2 of the fair value hierarchy. US Treasuries The Company's fair value level classification of US Treasuries is based on the original maturity dates of the securities and whether the securities are the most recent issuances of a given maturity. US Treasuries with original maturities less than one year are classified as Level 1. US Treasuries with original maturities greater than one year are classified as Level 1 if they represent the most recent issuance of a given maturity; otherwise, these securities are classified as Level 2. Non-agency Debt Securities The Company's non-agency debt securities include senior classes of commercial mortgage-backed securities and asset-backed securities collateralized by credit card, automobile loan and student loan receivables. The fair value of non-agency debt securities was determined using a market approach with recent transactions and spread data for identical or similar instruments. Non-agency debt securities were categorized in Level 2 of the fair value hierarchy. The Company sold its municipal bonds during the three months ended March 31, 2019. As of December 31, 2018, these securities were valued using a market approach with pricing service valuations corroborated by recent market transactions for identical or similar bonds and were categorized in Level 2 of the fair value hierarchy. Publicly Traded Equity Securities The fair value measurements of the Company's publicly traded equity securities were classified as Level 1 of the fair value hierarchy as they were based on quoted prices in active markets. Nonrecurring Fair Value Measurement Techniques Certain other assets are recorded at fair value on a nonrecurring basis: 1) one- to four-family and home equity loans in which the amount of the loan balance in excess of the estimated current value of the underlying property less estimated selling costs has been charged-off; and 2) real estate owned that is carried at the lower of the property’s carrying value or fair value less estimated selling costs. Loans Receivable Loans that have been delinquent for 180 days or that are in bankruptcy and certain troubled debt restructuring (TDR) loan modifications are charged-off based on the estimated current value of the underlying property less estimated selling costs. Property valuations for these one- to four-family and home equity loans are based on the most recent "as is" property valuation data available, which may include appraisals, broker price opinions, automated valuation models or updated values using home price indices. Real Estate Owned Property valuations for real estate owned are based on the lowest value of the most recent property valuation data available, which may include appraisals, listing prices or approved offer prices. Nonrecurring fair value measurements on one- to four-family loans, home equity loans and real estate owned were classified as Level 3 of the fair value hierarchy as the valuations included unobservable inputs that were significant to the fair value. The following table presents additional information about significant unobservable inputs used in the valuation of assets measured at fair value on a nonrecurring basis that were categorized in Level 3 of the fair value hierarchy: Unobservable Inputs Average Range September 30, 2019: Loans receivable: One- to four-family Appraised value $ 742,000 $92,000 - $2,700,000 Home equity Appraised value $ 405,200 $115,000 - $1,440,000 Real estate owned Appraised value $ 387,500 $30,000 - $1,050,000 December 31, 2018: Loans receivable: One- to four-family Appraised value $ 594,700 $17,000 - $2,000,000 Home equity Appraised value $ 397,700 $73,000 - $1,060,000 Real estate owned Appraised value $ 329,500 $57,900 - $900,000 Recurring and Nonrecurring Fair Value Measurements The following tables present the significant components of assets and liabilities measured at fair value (dollars in millions): Level 1 Level 2 Level 3 Total Fair Value September 30, 2019: Recurring fair value measurements: Assets Available-for-sale securities: Agency mortgage-backed securities $ — $ 18,514 $ — $ 18,514 Agency debentures — 673 — 673 US Treasuries — 1,349 — 1,349 Non-agency asset-backed securities — 369 — 369 Non-agency mortgage-backed securities — 114 — 114 Other — 1 — 1 Total available-for-sale securities — 21,020 — 21,020 Publicly traded equity securities (1) 7 — — 7 Total assets measured at fair value on a recurring basis (2) $ 7 $ 21,020 $ — $ 21,027 Nonrecurring fair value measurements: Loans receivable, net: One- to four-family $ — $ — $ 13 $ 13 Home equity — — 4 4 Total loans receivable — — 17 17 Other assets: Real estate owned — — 12 12 Total assets measured at fair value on a nonrecurring basis (3) $ — $ — $ 29 $ 29 (1) Consists of investments in a mutual fund related to the Community Reinvestment Act (CRA). (2) Assets measured at fair value on a recurring basis represented 34% of the Company’s total assets at September 30, 2019 . (3) Represents the fair value of assets prior to deducting estimated selling costs that were carried on the consolidated balance sheet at September 30, 2019 , and for which a fair value measurement was recorded during the period. Level 1 Level 2 Level 3 Total December 31, 2018: Recurring fair value measurements: Assets Available-for-sale securities: Agency mortgage-backed securities $ — $ 22,162 $ — $ 22,162 Agency debentures — 839 — 839 Agency debt securities — 139 — 139 Municipal bonds — 12 — 12 Other — 1 — 1 Total available-for-sale securities — 23,153 — 23,153 Derivative assets (1) — 1 — 1 Publicly traded equity securities (2) 7 — — 7 Total assets measured at fair value on a recurring basis (3) $ 7 $ 23,154 $ — $ 23,161 Nonrecurring fair value measurements: Loans receivable, net: One- to four-family $ — $ — $ 17 $ 17 Home equity — — 6 6 Total loans receivable — — 23 23 Other assets: Real estate owned — — 10 10 Total assets measured at fair value on a nonrecurring basis (4) $ — $ — $ 33 $ 33 (1) All derivative assets were interest rate contracts at December 31, 2018. Information related to derivative instruments is detailed in Note 7—Derivative Instruments and Hedging Activities . (2) Consists of investments in a mutual fund related to the CRA. At December 31, 2018, these equity securities are included in other assets on the consolidated balance sheet as a result of the adoption of amended accounting guidance. (3) Assets measured at fair value on a recurring basis represented 36% of the Company’s total assets at December 31, 2018. (4) Represents the fair value of assets prior to deducting estimated selling costs that were carried on the consolidated balance sheet at December 31, 2018, and for which a fair value measurement was recorded during the period. Gains and losses on assets measured at fair value on a nonrecurring basis were not material for the periods presented. Recurring Fair Value Measurements Categorized within Level 3 For the periods presented, no assets or liabilities measured at fair value on a recurring basis were categorized within Level 3 of the fair value hierarchy. The Company had no transfers between levels during the periods presented. Fair Value of Financial Instruments Not Carried at Fair Value The following tables present the carrying values, fair values and fair value hierarchy level classification of financial instruments that are not carried at fair value on the consolidated balance sheet (dollars in millions): September 30, 2019 Carrying Value Level 1 Level 2 Level 3 Total Fair Value Assets Cash and equivalents $ 493 $ 493 $ — $ — $ 493 Cash segregated under federal or other regulations $ 1,365 $ 1,365 $ — $ — $ 1,365 Held-to-maturity securities: Agency mortgage-backed securities $ 19,563 $ — $ 19,880 $ — $ 19,880 Agency debentures 327 — 333 — 333 Agency debt securities 1,652 — 1,699 — 1,699 Total held-to-maturity securities $ 21,542 $ — $ 21,912 $ — $ 21,912 Margin receivables (1) $ 9,859 $ — $ 9,859 $ — $ 9,859 Loans receivable, net: One- to four-family $ 860 $ — $ — $ 897 $ 897 Home equity 661 — — 701 701 Consumer 84 — — 83 83 Securities-based lending 142 — 142 — 142 Total loans receivable, net (2) $ 1,747 $ — $ 142 $ 1,681 $ 1,823 Receivables from brokers, dealers and clearing organizations (1) $ 1,038 $ — $ 1,038 $ — $ 1,038 Other assets (1)(3) $ 357 $ — $ 357 $ — $ 357 Liabilities Deposits $ 40,382 $ — $ 40,382 $ — $ 40,382 Customer payables $ 11,183 $ — $ 11,183 $ — $ 11,183 Payables to brokers, dealers and clearing organizations $ 1,091 $ — $ 1,091 $ — $ 1,091 Corporate debt $ 1,410 $ — $ 1,484 $ — $ 1,484 (1) The fair value of securities that the Company received as collateral in connection with margin receivables and securities borrowing activities, including the fully paid lending program, where the Company is permitted to sell or re-pledge the securities, was $14.0 billion at September 30, 2019 . Of this amount, $2.3 billion had been pledged or sold in connection with securities loaned and deposits with clearing organizations at September 30, 2019 . (2) The carrying value of loans receivable, net includes the allowance for loan losses of $27 million and loans that are recorded at fair value on a nonrecurring basis at September 30, 2019 . (3) Includes $250 million of securities purchased under agreements to resell and $107 million of securities borrowing from customers under the fully paid lending program. The fair value of the securities that the Company received as collateral for securities purchased under agreements to resell was $258 million at September 30, 2019 . December 31, 2018 Carrying Level 1 Level 2 Level 3 Total Assets Cash and equivalents $ 2,333 $ 2,333 $ — $ — $ 2,333 Cash segregated under federal or other regulations $ 1,011 $ 1,011 $ — $ — $ 1,011 Held-to-maturity securities: Agency mortgage-backed securities $ 18,085 $ — $ 17,748 $ — $ 17,748 Agency debentures 1,824 — 1,808 — 1,808 Agency debt securities 1,975 — 1,935 — 1,935 Total held-to-maturity securities $ 21,884 $ — $ 21,491 $ — $ 21,491 Margin receivables (1) $ 9,560 $ — $ 9,560 $ — $ 9,560 Loans receivable, net: One- to four-family $ 1,069 $ — $ — $ 1,099 $ 1,099 Home equity 810 — — 825 825 Consumer 117 — — 115 115 Securities-based lending 107 — 107 — 107 Total loans receivable, net (2) $ 2,103 $ — $ 107 $ 2,039 $ 2,146 Receivables from brokers, dealers and clearing organizations (1) $ 760 $ — $ 760 $ — $ 760 Other assets (1)(3) $ 36 $ — $ 36 $ — $ 36 Liabilities Deposits $ 45,313 $ — $ 45,313 $ — $ 45,313 Customer payables $ 10,117 $ — $ 10,117 $ — $ 10,117 Payables to brokers, dealers and clearing organizations $ 948 $ — $ 948 $ — $ 948 Corporate debt $ 1,409 $ — $ 1,372 $ — $ 1,372 (1) The fair value of securities that the Company received as collateral in connection with margin receivables and securities borrowing activities, including the fully paid lending program, where the Company is permitted to sell or re-pledge the securities, was $12.9 billion at December 31, 2018. Of this amount, $2.3 billion had been pledged or sold in connection with securities loaned and deposits with clearing organizations at December 31, 2018. (2) The carrying value of loans receivable, net includes the allowance for loan losses of $37 million and loans that are recorded at fair value on a nonrecurring basis at December 31, 2018. (3) The $36 million in other assets at December 31, 2018 represents securities borrowing from customers under the fully paid lending program. Fair Value of Commitments and Contingencies In the normal course of business, the Company makes various commitments to extend credit and incur contingent liabilities that are not reflected in the consolidated balance sheet. Changes in the economy or interest rates may influence the impact that these commitments and contingencies have on the Company in the future. The Company does not estimate the fair value of those commitments. Information related to such commitments and contingent liabilities is included in Note 14—Commitments, Contingencies and Other Regulatory Matters . |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Offsetting Assets and Liabilities [Abstract] | |
Offsetting Assets and Liabilities [Text Block] | NOTE 4—OFFSETTING ASSETS AND LIABILITIES Securities Purchased Under Agreements to Resell Securities purchased under agreements to resell are treated as collateralized financing transactions and are recorded at their contractual amounts plus accrued interest. For financial statement purposes, the Company does not offset securities purchased under agreements to resell transactions with securities sold under agreements to repurchase. The Company obtains securities as collateral from the counterparty with a market value in excess of the principal amount loaned. This activity could result in losses if the counterparty fails to repurchase the securities held as collateral for the cash advanced and the market value of the securities declines. The Company continuously monitors the collateral value and obtains additional collateral from the counterparty in an effort to ensure full collateralization. Securities Lending Transactions Securities borrowed and securities loaned transactions are recorded at the amount of cash collateral delivered to or received from the counterparty plus accrued interest. For financial statement purposes, the Company does not offset securities borrowing and securities lending transactions. These activities are generally transacted under master agreements that are widely used by counterparties and that may allow for net settlements of payments in the normal course, as well as offsetting of all contracts with a given counterparty in the event of bankruptcy or default of one of the two parties to the transaction. The Company is required to deliver cash to the lender for securities borrowed whereas the Company receives collateral in the form of cash for securities loaned. These activities both require cash in an amount generally in excess of the market value of the securities and have overnight or continuous remaining contractual maturities. Securities lending transactions expose the Company to counterparty credit risk and market risk. To manage the counterparty risk, the Company maintains internal standards for approving counterparties, reviews and analyzes the credit rating of each counterparty, and monitors its positions with each counterparty on an ongoing basis. In addition, for certain of the Company's securities lending transactions, the Company uses a program with a clearing organization that guarantees the return of collateral. The Company monitors the market value of the securities borrowed and loaned using collateral arrangements that require additional collateral to be obtained from or excess collateral to be returned to the counterparties based on changes in market value, in an effort to maintain specified collateral levels. The following table presents information about these transactions to enable the users of the Company’s consolidated financial statements to evaluate the potential effect of rights of set-off between these recognized assets and liabilities (dollars in millions): Gross Amounts Not Offset in the Consolidated Balance Sheet Gross Amounts of Recognized Assets and Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts Presented in the Consolidated Balance Sheet (1)(2) Financial Instruments Collateral Received or Pledged (Including Cash) Net Amount September 30, 2019: Assets: Securities purchased under agreements to resell (3) $ 250 $ — $ 250 $ — $ (250 ) $ — Securities borrowed (4) 728 — 728 (76 ) (629 ) 23 Total $ 978 $ — $ 978 $ (76 ) $ (879 ) $ 23 Liabilities: Securities loaned (5) $ 1,028 $ — $ 1,028 $ (76 ) $ (862 ) $ 90 Total $ 1,028 $ — $ 1,028 $ (76 ) $ (862 ) $ 90 December 31, 2018: Assets: Securities borrowed (4) $ 176 $ — $ 176 $ (104 ) $ (61 ) $ 11 Total $ 176 $ — $ 176 $ (104 ) $ (61 ) $ 11 Liabilities: Securities loaned (5) $ 887 $ — $ 887 $ (104 ) $ (700 ) $ 83 Total $ 887 $ — $ 887 $ (104 ) $ (700 ) $ 83 (1) Securities purchased under agreements to resell are included in the other assets line item in the consolidated balance sheet. (2) The vast majority of the net amount of cash collateral paid for securities borrowed are reflected in the receivables from brokers, dealers and clearing organizations line item while the cash collateral paid for securities borrowed under the fully paid lending program are reflected in other assets. Cash collateral received for securities loaned are reflected in the payables to brokers, dealers and clearing organizations line item in the consolidated balance sheet. (3) Over-collateralized at September 30, 2019, as the market value of the securities received by the Company was $258 million . (4) Included in the gross amounts of cash collateral paid for securities borrowed was $501 million and $65 million at September 30, 2019 and December 31, 2018 , respectively, transacted through a program with a clearing organization, which guarantees the return of cash to the Company. For presentation purposes, these amounts presented are based on the counterparties under the Company’s master securities loan agreements. (5) Included in the gross amounts of cash collateral received for securities loaned was $593 million and $543 million at September 30, 2019 and December 31, 2018 , respectively, transacted through a program with a clearing organization, which guarantees the return of securities to the Company. For presentation purposes, these amounts presented are based on the counterparties under the Company’s master securities loan agreements. Derivative Transactions At September 30, 2019, all of the derivatives that the Company utilized in its hedging activities were subject to derivatives clearing agreements (centrally cleared derivatives contracts). These cleared derivatives contracts enable clearing by a derivatives clearing organization through a clearing member. Under the contracts, the clearing member typically has a one-way right to offset all contracts in the event of the Company's default or bankruptcy. Collateral exchanged under these contracts is not included in the preceding table as the contracts may not qualify as master netting agreements. For financial statement purposes, the Company does not offset derivatives assets and derivative liabilities. See Note 7—Derivative Instruments and Hedging Activities for additional information. |
Available-for-Sale and Held-to-
Available-for-Sale and Held-to-Maturity Securities | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
AVAILABLE-FOR-SALE AND HELD-TO-MATURITY SECURITIES | NOTE 5—AVAILABLE-FOR-SALE AND HELD-TO-MATURITY SECURITIES The following table presents the amortized cost and fair value of available-for-sale and held-to-maturity securities (dollars in millions): Amortized Cost Gross Unrealized / Unrecognized Gains Gross Unrealized / Unrecognized Losses Fair Value September 30, 2019: Available-for-sale securities: Agency mortgage-backed securities $ 17,464 $ 1,095 $ (45 ) $ 18,514 Agency debentures 639 34 — 673 US Treasuries 1,287 73 (11 ) 1,349 Non-agency asset-backed securities (1) 368 2 (1 ) 369 Non-agency mortgage-backed securities 108 6 — 114 Other 1 — — 1 Total available-for-sale securities $ 19,867 $ 1,210 $ (57 ) $ 21,020 Held-to-maturity securities: Agency mortgage-backed securities $ 19,563 $ 359 $ (42 ) $ 19,880 Agency debentures 327 6 — 333 Other agency debt securities 1,652 48 (1 ) 1,699 Total held-to-maturity securities $ 21,542 $ 413 $ (43 ) $ 21,912 December 31, 2018: Available-for-sale securities: Agency mortgage-backed securities $ 22,140 $ 327 $ (305 ) $ 22,162 Agency debentures 833 13 (7 ) 839 Other agency debt securities 140 1 (2 ) 139 Municipal bonds 12 — — 12 Other 1 — — 1 Total available-for-sale securities $ 23,126 $ 341 $ (314 ) $ 23,153 Held-to-maturity securities: Agency mortgage-backed securities $ 18,085 $ 26 $ (363 ) $ 17,748 Agency debentures 1,824 — (16 ) 1,808 Other agency debt securities 1,975 4 (44 ) 1,935 Total held-to-maturity securities $ 21,884 $ 30 $ (423 ) $ 21,491 (1) Non-agency ABS collateralized by credit card, automobile loan and student loan receivables represented approximately 61% , 21% and 18% , respectively, of the non-agency ABS held at September 30, 2019. Contractual Maturities The following table presents the contractual maturities of all available-for-sale and held-to-maturity debt securities (dollars in millions): September 30, 2019 Amortized Cost Fair Value Available-for-sale debt securities: Due within one year $ 103 $ 103 Due within one to five years 311 314 Due within five to ten years 9,464 10,391 Due after ten years 9,989 10,212 Total available-for-sale debt securities $ 19,867 $ 21,020 Held-to-maturity debt securities: Due within one year $ 23 $ 23 Due within one to five years 2,094 2,133 Due within five to ten years 3,137 3,236 Due after ten years 16,288 16,520 Total held-to-maturity debt securities $ 21,542 $ 21,912 At September 30, 2019 and December 31, 2018 , the Company had pledged $7.4 billion and $6.3 billion , respectively, of held-to-maturity debt securities, and $520 million and $151 million , respectively, of available-for-sale securities, as collateral for FHLB advances, derivatives and other purposes. Investments with Unrealized or Unrecognized Losses The following table presents the fair value and unrealized or unrecognized losses on available-for-sale and held-to-maturity securities, and the length of time that individual securities have been in a continuous unrealized or unrecognized loss position (dollars in millions): Less than 12 Months 12 Months or More Total Fair Value Unrealized / Unrecognized Losses Fair Value Unrealized / Unrecognized Losses Fair Value Unrealized / Unrecognized Losses September 30, 2019: Available-for-sale securities: Agency mortgage-backed securities $ 843 $ (4 ) $ 3,118 $ (41 ) $ 3,961 $ (45 ) US Treasuries 429 (11 ) — — 429 (11 ) Non-agency asset-backed securities 203 (1 ) — — 203 (1 ) Total temporarily impaired available-for-sale securities $ 1,475 $ (16 ) $ 3,118 $ (41 ) $ 4,593 $ (57 ) Held-to-maturity securities: Agency mortgage-backed securities $ 403 $ (3 ) $ 4,166 $ (39 ) $ 4,569 $ (42 ) Agency debentures — — 35 — 35 — Other agency debt securities — — 143 (1 ) 143 (1 ) Total temporarily impaired held-to-maturity securities $ 403 $ (3 ) $ 4,344 $ (40 ) $ 4,747 $ (43 ) December 31, 2018: Available-for-sale securities: Agency mortgage-backed securities $ 2,945 $ (34 ) $ 7,826 $ (271 ) $ 10,771 $ (305 ) Agency debentures 383 (1 ) 116 (6 ) 499 (7 ) Other agency debt securities — — 30 (2 ) 30 (2 ) Municipal bonds — — 9 — 9 — Other 1 — — — 1 — Total temporarily impaired available-for-sale securities $ 3,329 $ (35 ) $ 7,981 $ (279 ) $ 11,310 $ (314 ) Held-to-maturity securities: Agency mortgage-backed securities $ 2,802 $ (31 ) $ 11,587 $ (332 ) $ 14,389 $ (363 ) Agency debentures 776 (2 ) 666 (14 ) 1,442 (16 ) Other agency debt securities 97 (1 ) 1,487 (43 ) 1,584 (44 ) Total temporarily impaired held-to-maturity securities $ 3,675 $ (34 ) $ 13,740 $ (389 ) $ 17,415 $ (423 ) The Company does not believe that any individual unrealized loss in the available-for-sale portfolio or unrecognized loss in the held-to-maturity portfolio represents an other-than-temporary impairment as of September 30, 2019 or through the date of this report. The Company does not intend to sell the debt securities in an unrealized or unrecognized loss position and it is not more likely than not that the Company will be required to sell the debt securities before the anticipated recovery of its remaining amortized cost of the debt securities in an unrealized or unrecognized loss position. There were no impairment losses recognized in earnings on available-for-sale or held-to-maturity securities during the nine months ended September 30, 2019 and 2018 . Gains (Losses) on Securities and Other, Net The following table presents the components of gains (losses) on securities and other, net (dollars in millions): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Gains (losses) on available-for-sale securities, net: Gains on available-for-sale securities (1)(2) $ 14 $ 65 $ 40 $ 87 Losses on available-for-sale securities (1)(2) — (54 ) (80 ) (54 ) Subtotal 14 11 (40 ) 33 Equity method investment income and other (3) 2 6 3 9 Gains (losses) on securities and other, net $ 16 $ 17 $ (37 ) $ 42 (1) In June 2019, the Company repositioned its balance sheet through the sales of $4.5 billion of lower-yielding investment securities. These sales enabled the reduction of our balance sheet size and the Company moved $6.6 billion of deposits to third-party banks generating additional capital capacity to support future share repurchases. Gains (losses) on securities and other, net for the nine months ended September 30, 2019 includes $80 million of losses related to these sales. (2) In August 2018, the Company sold available-for-sale securities and reinvested the sale proceeds in agency-backed securities at current market rates. A subset of these securities had been purchased in lower interest rate environments and were in unrealized loss positions at the time of sale. As both the change in intent related to these securities and the sale of these securities occurred within the same reporting period, the Company presented the losses on the sale of these securities within the gains on securities and other, net line item. (3) Includes a $5 million gain on the sale of our Chicago Stock Exchange investment for the three and nine months ended September 30, 2018. |
Loans Receivable, Net
Loans Receivable, Net | 9 Months Ended |
Sep. 30, 2019 | |
Loans and Leases Receivable Disclosure [Abstract] | |
LOANS RECEIVABLE, NET | NOTE 6—LOANS RECEIVABLE, NET The following table presents loans receivable disaggregated by delinquency status (dollars in millions): Days Past Due Current 30-89 90-179 180+ Total Unamortized Premiums, Net Allowance for Loans Losses Loans Receivable, Net September 30, 2019: One- to four-family $ 777 $ 37 $ 8 $ 39 $ 861 $ 5 $ (6 ) $ 860 Home equity 633 21 9 17 680 — (19 ) 661 Consumer 83 2 — — 85 1 (2 ) 84 Securities-based lending (1) 142 — — — 142 — — 142 Total loans receivable $ 1,635 $ 60 $ 17 $ 56 $ 1,768 $ 6 $ (27 ) $ 1,747 December 31, 2018: One- to four-family $ 958 $ 48 $ 9 $ 56 $ 1,071 $ 7 $ (9 ) $ 1,069 Home equity 774 25 13 24 836 — (26 ) 810 Consumer 117 1 — — 118 1 (2 ) 117 Securities-based lending (1) 107 — — — 107 — — 107 Total loans receivable $ 1,956 $ 74 $ 22 $ 80 $ 2,132 $ 8 $ (37 ) $ 2,103 (1) E*TRADE Line of Credit is a securities-based lending product where customers can borrow against the market value of their securities pledged as collateral. The unused credit line amount totaled $310 million and $173 million as of September 30, 2019 and December 31, 2018, respectively. At September 30, 2019 , the Company pledged $1.3 billion and $0.1 billion of loans as collateral to the FHLB and Federal Reserve Bank of Richmond, respectively. At December 31, 2018 , the Company pledged $1.6 billion and $0.1 billion of loans as collateral to the FHLB and Federal Reserve Bank of Richmond, respectively. Credit Quality and Concentrations of Credit Risk The Company tracks and reviews factors to predict and monitor credit risk in its mortgage loan portfolio on an ongoing basis. The following tables present the distribution of the Company’s mortgage loan portfolios by credit quality indicator (dollars in millions): One- to Four-Family Home Equity September 30, December 31, September 30, December 31, Current LTV/CLTV (1) 2019 2018 2019 2018 <=80% $ 706 $ 823 $ 393 $ 454 80%-100% 102 165 169 215 100%-120% 31 45 77 110 >120% 22 38 41 57 Total mortgage loans receivable $ 861 $ 1,071 $ 680 $ 836 Average estimated current LTV/CLTV (2) 62 % 66 % 77 % 80 % Average LTV/CLTV at loan origination (3) 70 % 70 % 82 % 82 % (1) Current CLTV calculations for home equity loans are based on the maximum available line for HELOCs and outstanding principal balance for HEILs. For home equity loans in the second lien position, the original balance of the first lien loan at origination date and updated valuations on the property underlying the loan are used to calculate CLTV. Current property value estimates are updated on a quarterly basis. (2) The average estimated current LTV/CLTV ratio reflects the outstanding balance at the balance sheet date and the maximum available line for HELOCs, divided by the estimated current value of the underlying property. (3) Average LTV/CLTV at loan origination calculations are based on LTV/CLTV at time of purchase for one- to four-family purchased loans, HEILs and the maximum available line for HELOCs. One- to Four-Family Home Equity September 30, December 31, September 30, December 31, Current FICO 2019 2018 2019 2018 >=720 $ 498 $ 617 $ 357 $ 442 719 - 700 68 89 63 78 699 - 680 66 80 58 70 679 - 660 45 66 48 56 659 - 620 69 79 62 80 <620 115 140 92 110 Total mortgage loans receivable $ 861 $ 1,071 $ 680 $ 836 One- to four-family loans include loans with an interest-only period, followed by an amortizing period. At September 30, 2019 , 100% of these loans were amortizing. The home equity loan portfolio consists of HEILs and HELOCs. HEILs are primarily fully amortizing loans that do not offer the option of an interest-only payment. The majority of HELOCs had an interest only draw period at origination and converted to amortizing loans at the end of the draw period. At September 30, 2019 , nearly 100% of the HELOC portfolio had converted from the interest-only draw period. The weighted average age of our mortgage and consumer loans receivable was 13.5 and 12.8 years at September 30, 2019 and December 31, 2018 , respectively. Approximately 32% and 33% of the Company’s mortgage loans receivable were concentrated in California at September 30, 2019 and December 31, 2018, respectively. Approximately 10% of the Company's mortgage loans receivable were concentrated in New York at both September 30, 2019 and December 31, 2018 . No other state had concentrations of mortgage loans that represented 10% or more of the Company’s mortgage loans receivable at September 30, 2019 or December 31, 2018 . At September 30, 2019 , 23% and 22% of the Company’s past-due mortgage loans were concentrated in California and New York, respectively. No other state had concentrations of past-due mortgage loans that represented 10% or more of the Company's past-due mortgage loans. At September 30, 2019 , 42% and 10% of the Company’s impaired mortgage loans were concentrated in California and New York, respectively. No other state had concentrations of impaired mortgage loans that represented 10% or more of the Company's impaired mortgage loans. Nonperforming Loans The Company classifies loans as nonperforming when they are no longer accruing interest. The following table presents nonperforming loans by loan portfolio (dollars in millions): September 30, 2019 December 31, 2018 One- to four-family $ 118 $ 139 Home equity 58 71 Total nonperforming loans receivable $ 176 $ 210 The Company held $13 million of real estate owned that was acquired through foreclosure or through a deed in lieu of foreclosure or similar legal agreement at September 30, 2019 and December 31, 2018, respectively. The Company held $33 million and $51 million of loans for which formal foreclosure proceedings were in process at September 30, 2019 and December 31, 2018, respectively. Allowance for Loan Losses The allowance for loan losses is management’s estimate of probable losses inherent in the loan portfolio at the balance sheet date, as well as the forecasted losses, including economic concessions to borrowers, over the estimated remaining life of loans modified as TDRs. The general allowance for loan losses includes a qualitative component to account for a variety of factors that present additional uncertainty that may not be fully considered in the quantitative loss model but are factors we believe may impact the level of credit losses. The following table presents the allowance for loan losses by loan portfolio (dollars in millions): September 30, 2019 One- to Four-Family Home Equity Consumer Total (1) General reserve: Quantitative component $ 1 $ 3 $ 2 $ 6 Qualitative component — (1 ) — (1 ) Specific valuation allowance 5 17 — 22 Total allowance for loan losses $ 6 $ 19 $ 2 $ 27 Allowance as a % of loans receivable (2) 0.7 % 2.8 % 1.6 % 1.5 % December 31, 2018 One- to Four-Family Home Equity Consumer Total (1) General reserve: Quantitative component $ 4 $ 6 $ 2 $ 12 Qualitative component — 1 — 1 Specific valuation allowance 5 19 — 24 Total allowance for loan losses $ 9 $ 26 $ 2 $ 37 Allowance as a % of loans receivable (2) 0.8 % 3.1 % 1.0 % 1.7 % (1) Securities-based lending loans were fully collateralized by cash and securities with fair values in excess of borrowings at both September 30, 2019 and December 31, 2018, respectively. (2) Allowance as a percentage of loans receivable is calculated based on the gross loans receivable including net unamortized premiums for each respective category. The following table presents a roll forward by loan portfolio of the allowance for loan losses (dollars in millions): Three Months Ended September 30, 2019 One- to Four-Family Home Equity Consumer Total Allowance for loan losses, beginning of period $ 9 $ 19 $ 2 $ 30 Provision (benefit) for loan losses (5 ) (6 ) (1 ) (12 ) Charge-offs (1) — — — — Recoveries 2 6 1 9 Net (charge-offs) recoveries 2 6 1 9 Allowance for loan losses, end of period (2) $ 6 $ 19 $ 2 $ 27 Three Months Ended September 30, 2018 One- to Four-Family Home Equity Consumer Total Allowance for loan losses, beginning of period $ 16 $ 36 $ 2 $ 54 Provision (benefit) for loan losses (6 ) (28 ) — (34 ) Charge-offs (1) — — (1 ) (1 ) Recoveries (3) 2 19 1 22 Net (charge-offs) recoveries 2 19 — 21 Allowance for loan losses, end of period (2) $ 12 $ 27 $ 2 $ 41 Nine Months Ended September 30, 2019 One- to Four-Family Home Equity Consumer Total Allowance for loan losses, beginning of period $ 9 $ 26 $ 2 $ 37 Provision (benefit) for loan losses (8 ) (24 ) — (32 ) Charge-offs (1) — — (2 ) (2 ) Recoveries 5 17 2 24 Net (charge-offs) recoveries 5 17 — 22 Allowance for loan losses, end of period (2) $ 6 $ 19 $ 2 $ 27 Nine Months Ended September 30, 2018 One- to Home Consumer Total Allowance for loan losses, beginning of period $ 24 $ 46 $ 4 $ 74 Provision (benefit) for loan losses (17 ) (56 ) (1 ) (74 ) Charge-offs (1) (1 ) — (3 ) (4 ) Recoveries (3) 6 37 2 45 Net (charge-offs) recoveries 5 37 (1 ) 41 Allowance for loan losses, end of period (2) $ 12 $ 27 $ 2 $ 41 (1) Includes benefits resulting from recoveries of partial charge-offs due to principal paydowns or payoffs for the periods presented. The benefits included in the charge-offs line item exceeded other charge-offs for both one-to-four family and home equity loan portfolios during the three months ended September 30, 2018 and 2019, respectively, and for the nine months ended September 30, 2019. The benefits included in the charge-offs line item exceeded other charge-offs for the home equity loan portfolio during the nine months ended September 30, 2018. (2) Securities-based lending loans were fully collateralized by cash and securities with fair values in excess of borrowings for both the three and nine months ended September 30, 2019 and September 30, 2018 , respectively. (3) Includes $10 million of recoveries recognized during the three months ended September 30, 2018 and $15 million of recoveries recognized during the nine months ended September 30, 2018 related to the sale of previously charged-off home equity loans. Total loans receivable designated as held-for-investment decreased $0.4 billion during the nine months ended September 30, 2019 . The allowance for loan losses was $27 million , or 1.5% of total loans receivable, as of September 30, 2019 compared to $37 million , or 1.7% of total loans receivable, as of December 31, 2018 . Net recoveries for the nine months ended September 30, 2019 were $22 million compared to $41 million in the same period in 2018 . The benefit for loan losses was $32 million for the nine months ended September 30, 2019 . The timing and magnitude of the provision (benefit) for loan losses is affected by many factors that could result in variability. These benefits reflected better than expected performance of our portfolio as well as recoveries in excess of prior expectations, including sales of charged-off loans and recoveries of previous charge-offs, as applicable, that were not included in our loss estimates. The following table presents the total recorded investment in loans receivable and allowance for loan losses by loans that have been collectively evaluated for impairment and those that have been individually evaluated for impairment by loan portfolio (dollars in millions): Recorded Investment Allowance for Loan Losses September 30, December 31, September 30, December 31, 2019 2018 2019 2018 Collectively evaluated for impairment: One- to four-family $ 694 $ 891 $ 1 $ 4 Home equity 561 698 2 7 Consumer 86 119 2 2 Securities-based lending 142 107 — — Total collectively evaluated for impairment 1,483 1,815 5 13 Individually evaluated for impairment: One- to four-family 172 187 5 5 Home equity 119 138 17 19 Total individually evaluated for impairment 291 325 22 24 Total $ 1,774 $ 2,140 $ 27 $ 37 Impaired Loans—Troubled Debt Restructurings The Company considers a loan to be impaired when it meets the definition of a TDR. Delinquency status is the primary measure the Company uses to evaluate the performance of loans modified as TDRs. The Company classifies loans as nonperforming when they are no longer accruing interest. The recorded investment in loans modified as TDRs includes the charge-offs related to certain loans that were written down to estimated current value of the underlying property less estimated selling costs. The following table presents a summary of the Company’s recorded investment in TDRs that were on accrual and nonaccrual status, further disaggregated by delinquency status (dollars in millions): Nonaccrual TDRs Accrual TDRs (1) Current (2) 30-89 Days Delinquent 90-179 Days Delinquent 180+ Days Delinquent Total Recorded Investment in TDRs (3)(4) September 30, 2019: One- to four-family $ 83 $ 60 $ 10 $ 2 $ 17 $ 172 Home equity 78 22 7 3 9 119 Total $ 161 $ 82 $ 17 $ 5 $ 26 $ 291 December 31, 2018: One- to four-family $ 87 $ 61 $ 12 $ 4 $ 23 $ 187 Home equity 90 23 8 5 12 138 Total $ 177 $ 84 $ 20 $ 9 $ 35 $ 325 (1) Represents loans modified as TDRs that are current and have made six or more consecutive payments. (2) Represents loans modified as TDRs that are current but have not yet made six consecutive payments, bankruptcy loans and certain junior lien TDRs that have a delinquent senior lien. (3) Total recorded investment in TDRs includes premium (discount), as applicable, and is net of charge-offs, which were $48 million and $102 million for one-to four-family and home equity loans, respectively, as of September 30, 2019 and $55 million and $121 million , respectively, as of December 31, 2018 . (4) Total recorded investment in TDRs at September 30, 2019 consisted of $231 million of loans modified as TDRs and $60 million of loans that have been charged off due to bankruptcy notification. Total recorded investment in TDRs at December 31, 2018 consisted of $253 million of loans modified as TDRs and $72 million of loans that have been charged off due to bankruptcy notification. The following table presents the monthly average recorded investment and interest income recognized both on a cash and accrual basis for the Company's TDRs (dollars in millions): Average Recorded Investment Interest Income Recognized Three Months Ended September 30, Three Months Ended September 30, 2019 2018 2019 2018 One- to four-family $ 175 $ 198 $ 2 $ 2 Home equity 122 148 2 4 Total $ 297 $ 346 $ 4 $ 6 Average Recorded Investment Interest Income Recognized Nine Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 One- to four-family $ 179 $ 205 $ 6 $ 6 Home equity 129 156 8 10 Total $ 308 $ 361 $ 14 $ 16 The following table presents detailed information related to the Company’s TDRs and specific valuation allowances (dollars in millions): September 30, 2019 December 31, 2018 Recorded Investment in TDRs Specific Valuation Allowance Net Investment in TDRs Recorded Investment in TDRs Specific Valuation Allowance Net Investment in TDRs With a recorded allowance: One- to four-family $ 47 $ 5 $ 42 $ 50 $ 5 $ 45 Home equity $ 52 $ 17 $ 35 $ 60 $ 19 $ 41 Without a recorded allowance: (1) One- to four-family $ 125 $ — $ 125 $ 137 $ — $ 137 Home equity $ 67 $ — $ 67 $ 78 $ — $ 78 Total: One- to four-family $ 172 $ 5 $ 167 $ 187 $ 5 $ 182 Home equity $ 119 $ 17 $ 102 $ 138 $ 19 $ 119 (1) Represents loans where the discounted cash flow analysis or collateral value is equal to or exceeds the recorded investment in the loan. The following table presents the number of loans and post-modification balances immediately after being modified by major class (dollars in millions): Three Months Ended Interest Rate Reduction Number of Re-age/ Other with Other (1) Total September 30, 2019: One- to four-family 7 $ 4 $ — $ 1 $ 5 Home equity 15 1 — — 1 Total 22 $ 5 $ — $ 1 $ 6 September 30, 2018: One- to four-family 11 $ 2 $ — $ 2 $ 4 Home equity 15 — — 1 1 Total 26 $ 2 $ — $ 3 $ 5 Nine Months Ended Interest Rate Reduction Number of Re-age/ Other with Other (1) Total September 30, 2019: One- to four-family 23 $ 6 $ — $ 4 $ 10 Home equity 35 2 — — 2 Total 58 $ 8 $ — $ 4 $ 12 September 30, 2018: One- to four-family 46 $ 14 $ — $ 6 $ 20 Home equity 75 4 1 1 6 Total 121 $ 18 $ 1 $ 7 $ 26 (1) Amounts represent loans whose terms were modified in a manner that did not result in an interest rate reduction, including re-aged loans, extensions, and loans with capitalized interest. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | NOTE 7—DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Presentation on the Consolidated Balance Sheet Hedging Instruments The Company utilizes fair value hedges to offset exposure to changes in value of certain fixed-rate assets. The following table presents a summary of the fair value of derivatives as reported in the consolidated balance sheet (dollars in millions): Fair Value Notional Asset (1) Liability Net (2) September 30, 2019: Interest rate contracts: Fair value hedges (3) $ 10,643 $ — $ — $ — Total derivatives designated as hedging instruments (4) $ 10,643 $ — $ — $ — December 31, 2018: Interest rate contracts: Fair value hedges $ 9,763 $ 1 $ — $ 1 Total derivatives designated as hedging instruments (4) $ 9,763 $ 1 $ — $ 1 (1) Reflected in the other assets line item on the consolidated balance sheet. (2) Represents net fair value of derivative instruments for disclosure purposes only. (3) As of September 30, 2019, there are no bilateral derivative contracts. (4) All derivatives were designated as hedging instruments at September 30, 2019 and December 31, 2018 . The consolidated balance sheet and the table above exclude derivative assets of $5 million and $175 million at September 30, 2019 and December 31, 2018 , respectively and derivative liabilities of $772 million and $131 million for the same periods. These contracts were executed through a central clearing organization and were settled by variation margin payments. Credit Risk As all of the derivatives that the Company utilizes in its hedging activities at September 30, 2019 are subject to derivatives clearing agreements (cleared derivatives contracts), the credit risk associated with these cleared derivatives contracts is largely mitigated by the daily variation margin exchanged with counterparties. For other derivative contracts, the Company also monitors collateral requirements through credit support agreements, which reduce risk by permitting the netting of transactions with the same counterparty upon the occurrence of certain events. During the nine months ended September 30, 2019 , the consideration of counterparty credit risk did not result in an adjustment to the valuation of the Company’s derivative instruments. Hedged Assets The following table presents the cumulative basis adjustments related to the carrying amount of hedged assets in fair value hedging relationships (dollars in millions): Cumulative Amount of Fair Value Hedging Basis Adjustment Included in Carrying Amount of Hedged Assets (2) Carrying Amount of Hedged Assets (1) Total Discontinued September 30, 2019: Available-for-sale securities (3) $ 13,386 $ 891 $ (274 ) December 31, 2018: Available-for-sale securities (3) $ 13,203 $ (10 ) $ (385 ) (1) The carrying amount includes the impact of basis adjustments on active fair value hedges and the impact of basis adjustments from previously discontinued fair value hedges. (2) Represents the increase (decrease) to the carrying amount of hedged assets. The discontinued portion of the cumulative amount of fair value hedging basis adjustments is amortized into net interest income using the effective interest method over the expected remaining life of the hedged items. (3) Includes the amortized cost basis of closed portfolios of prepayable securities designated in hedging relationships in which the hedged item is the last layer of principal expected to be remaining throughout the hedge term. As of September 30, 2019 and December 31, 2018, respectively, the amortized cost basis of this portfolio was $45 million and $810 million , the amount of the designated hedged items was $30 million and $192 million and the cumulative basis adjustments associated with these hedges was $1 million and $6 million . Presentation on the Consolidated Statement of Income The following table presents the effects of fair value hedge accounting on the consolidated statement of income (dollars in millions): Interest Income Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Total interest income $ 521 $ 514 $ 1,636 $ 1,471 Effects of fair value hedging on total interest income (1)(2) Agency debentures: Amounts recognized as interest accruals on derivatives — (1 ) — (4 ) Changes in fair value of hedged items 30 (8 ) 61 (74 ) Changes in fair value of derivatives (29 ) 8 (61 ) 74 Net loss on fair value hedging relationships - agency debentures 1 (1 ) — (4 ) Agency mortgage-backed securities: Amounts recognized as interest accruals on derivatives (3 ) 1 1 (14 ) Amortization of basis adjustments from discontinued hedges 8 7 27 16 Changes in fair value of hedged items 258 (88 ) 946 (416 ) Changes in fair value of derivatives (260 ) 83 (946 ) 403 Net gain (loss) on fair value hedging relationships - agency mortgage-backed securities 3 3 28 (11 ) Total net gain (loss) on fair value hedging relationships $ 4 $ 2 $ 28 $ (15 ) (1) Excludes interest income accruals on hedged items and amounts recognized upon the sale of securities attributable to fair value hedge accounting. (2) Excludes interest on variation margin related to centrally cleared derivative contracts. |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2019 | |
Deposits [Abstract] | |
DEPOSITS | NOTE 8—DEPOSITS The following table presents the significant components of deposits (dollars in millions): September 30, 2019 December 31, 2018 Sweep deposits $ 30,778 $ 39,322 Savings deposits (1) 7,964 4,133 Other deposits (2) 1,640 1,858 Total deposits $ 40,382 $ 45,313 (1) Includes $6.3 billion and $2.0 billion of deposits at September 30, 2019 , and December 31, 2018, respectively, in our Premium Savings Account product. (2) Includes checking deposits, money market deposits and certificates of deposit. As of September 30, 2019 and December 31, 2018 , the Company had $183 million and $193 million in non-interest bearing deposits, respectively. The Company moved $6.6 billion of deposits to third-party banks in June 2019 as part of the Company's balance sheet repositioning. See Note 5—Available-for-Sale and Held-to-Maturity Securities for additional information. |
Other Borrowings and Corporate
Other Borrowings and Corporate Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
CORPORATE DEBT AND OTHER BORROWINGS | NOTE 9—OTHER BORROWINGS AND CORPORATE DEBT Other Borrowings The following table presents the Company's external lines of credit at September 30, 2019 (dollars in millions): Description Maturity Date Borrower Outstanding Available Senior unsecured, committed revolving credit facility (1) June 2024 ETFC $ — $ 300 FHLB secured credit facility Determined at trade ETB $ — $ 7,290 Federal Reserve Bank discount window Overnight ETB $ — $ 1,131 Senior unsecured, committed revolving credit facility (2) June 2020 ETS $ — $ 600 Secured, committed lines of credit June 2020 ETS $ — $ 175 Unsecured, uncommitted lines of credit June 2020 ETS $ — $ 50 Unsecured, uncommitted lines of credit None ETS $ — $ 75 Secured, uncommitted lines of credit None ETS $ — $ 425 (1) On June 21, 2019, the Company entered into a new five year, $300 million senior unsecured committed revolving credit facility, which replaced its three year senior unsecured committed revolving credit facility entered into on June 23, 2017. The senior unsecured committed revolving credit facility contains certain covenants, including maintenance covenants related to the Company's interest coverage, leverage and regulatory net capital ratios with which the Company was in compliance at September 30, 2019 . (2) On June 21, 2019, E*TRADE Securities entered into a 364-day, $600 million senior unsecured committed revolving credit facility, which replaced its 364-day senior unsecured committed revolving credit facility entered into on June 22, 2018. The senior unsecured committed revolving credit facility contains certain covenants, including maintenance covenants related to E*TRADE Securities' minimum consolidated tangible net worth and regulatory net capital ratio with which the Company was in compliance at September 30, 2019 . Corporate Debt The following tables present the significant components of E*TRADE Financial's corporate debt (dollars in millions): Face Value Discount Net September 30, 2019: Interest-bearing notes: 2.95% Senior Notes, due 2022 $ 600 $ (3 ) $ 597 3.80% Senior Notes, due 2027 400 (3 ) 397 4.50% Senior Notes, due 2028 420 (4 ) 416 Total corporate debt $ 1,420 $ (10 ) $ 1,410 December 31, 2018: Interest-bearing notes: 2.95% Senior Notes, due 2022 $ 600 $ (4 ) $ 596 3.80% Senior Notes, due 2027 400 (3 ) 397 4.50% Senior Notes, due 2028 420 (4 ) 416 Total corporate debt $ 1,420 $ (11 ) $ 1,409 |
Lease Arrangements
Lease Arrangements | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
LEASE ARRANGEMENTS | NOTE 10—LEASE ARRANGEMENTS The Company enters into non-cancelable operating leases for its corporate offices, retail branches and other facilities. These leases have remaining terms ranging from less than one to 12 years , and the weighted-average remaining lease term for these leases is 8.7 years . Most leases include one or more options to renew, with renewal terms that can extend the lease term up to 10 years . Only those renewal terms that the Company is reasonably certain of exercising are included in the calculation of the lease liability. Leases that have not yet commenced at September 30, 2019 will have an immaterial impact on the Company's right-of-use assets and lease liabilities. Certain lease agreements include rental payments based on power usage or that adjust periodically for inflation or costs incurred by the lessor. None of the Company's current lease agreements contain material residual value guarantees or material restrictive covenants. The following table presents balance sheet information related to the Company's classification of ROU assets and operating lease liabilities (dollars in millions): Classification September 30, 2019 Operating lease assets, net Other assets $ 211 Operating lease liabilities Other liabilities $ 243 The Company utilizes incremental borrowing rates to determine the present value of lease payments for each lease. As the Company's leases do not provide an implicit rate, the incremental borrowing rate estimates are based on the terms of each lease as well as the interest rate environment at the later of the adoption date of January 1, 2019, lease commencement date or lease remeasurement date. The incremental borrowing rate has also been adjusted to reflect a secured rate. A weighted-average discount rate of 4.3% was used to calculate the lease liability balances for the Company's operating leases. Leases with an initial term of twelve months or less are not recorded on the balance sheet; lease expense for these leases is recognized on a straight-line basis over the lease term. The Company has elected not to separate lease and non-lease components for all property leases for the purposes of calculating ROU assets and lease liabilities. Cash paid for amounts included in the measurement of operating lease liabilities was $8 million and $21 million for the three and nine months ended September 30, 2019 . The following table presents the significant components of lease expense (dollars in millions): Classification Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease cost (1) Occupancy and Equipment $ 10 $ 26 Variable lease cost Occupancy and Equipment — 2 Net lease expense (2) $ 10 $ 28 (1) Includes short-term lease costs which are not material. (2) Net of sublease income which is not material. The following table presents the maturities of lease liabilities (dollars in millions): Operating Leases Years ending December 31, 2019 (1) $ 8 2020 37 2021 36 2022 32 2023 33 Thereafter 149 Total lease payments 295 Imputed interest (52 ) Present value of lease liabilities $ 243 (1) Excludes maturities during the nine months ended September 30, 2019 . The Company executed a sale-leaseback transaction on its Alpharetta, Georgia office in 2014. The transaction was initially accounted for as a financing as it did not qualify for sale accounting. The Company evaluated this transaction as part of the adoption of the new lease guidance in 2019 and concluded that it did not qualify for sale accounting and should continue to be accounted for as a financing. The office building is included in the property and equipment, net line item and the related financing obligation is included in the other liabilities line item in the Company's consolidated balance sheet. Future minimum lease payments and sublease proceeds to be received under the lease are $26 million and $10 million , respectively. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 11—SHAREHOLDERS' EQUITY Preferred Stock The following table presents the preferred stock outstanding (in millions except total shares outstanding and per share data): Carrying Value at Description Issuance Date Per Annum Dividend Rate Total Shares Outstanding Liquidation Preference per Share September 30, 2019 December 31, 2018 Series A Fixed-to-Floating Rate Non-Cumulative 8/25/2016 5.875% to, but excluding, 9/15/2026; 3-mo LIBOR + 4.435% thereafter 400,000 $ 1,000 $ 394 $ 394 Series B Fixed-to-Floating Rate Non-Cumulative 12/6/2017 5.30% to, but excluding, 3/15/2023; 3-mo LIBOR + 3.16% thereafter 3,000 $ 100,000 295 295 Total 403,000 $ 689 $ 689 Dividend on Preferred Stock The following table presents the cash dividend paid on preferred stock (in millions except per share data): Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 Declaration Date Record Date Payment Date Dividend per Share Dividend Paid Declaration Date Record Date Payment Date Dividend per Share Dividend Paid Series A (1) 2/7/2019 2/28/2019 3/15/2019 $ 29.38 $ 12 2/8/2018 2/28/2018 3/15/2018 $ 29.38 $ 12 7/25/2019 8/30/2019 9/16/2019 $ 29.38 12 7/26/2018 8/31/2018 9/17/2018 $ 29.38 12 Series B (1) 2/7/2019 2/28/2019 3/15/2019 $ 2,650.00 8 7/25/2019 8/30/2019 9/16/2019 $ 2,650.00 8 7/26/2018 8/31/2018 9/17/2018 $ 4,107.50 12 Total $ 40 $ 36 (1) Dividends are non-cumulative and payable semi-annually, if declared. Common Stock Dividend on Common Stock The following table presents the cash dividend paid on common stock (in millions except per share data): Nine Months Ended September 30, 2019 Declaration Date Record Date Payment Date Dividend per Share Dividend Paid 1/23/2019 2/1/2019 2/15/2019 $ 0.14 $ 35 4/16/2019 5/13/2019 5/20/2019 $ 0.14 34 7/17/2019 8/19/2019 8/26/2019 $ 0.14 34 Total $ 103 On October 16, 2019, the Company declared a cash dividend for the third quarter of $0.14 per share on its outstanding shares of common stock. The dividend is payable on November 15, 2019, to shareholders of record as of the close of business on November 8, 2019. Share Repurchases During the three months ended September 30, 2019, the Company completed its prior $1 billion share repurchase program with the repurchase of 3.6 million shares of common stock for a total of $157 million . In July 2019, the Company announced that its Board of Directors has authorized a new $1.5 billion share repurchase program. During the three months ended September 30, 2019, the Company repurchased 9.8 million shares of common stock for a total of $409 million under this new repurchase program. As of October 29, 2019 , the Company had subsequently repurchased an additional 0.9 million shares of common stock at an average price of $40.88 . The Company accounts for share repurchases retired after repurchase by allocating the excess repurchase price over par to additional paid-in-capital. Other Common Stock Activity Other common stock activity includes shares withheld to pay taxes for share-based compensation, employee stock purchase plan and other activity. Accumulated Other Comprehensive Loss The following table presents after-tax changes in each component of accumulated other comprehensive loss (dollars in millions): 2019 2018 Accumulated other comprehensive loss, beginning of period (1) $ (275 ) $ (26 ) Other comprehensive income (loss) before reclassifications 112 (128 ) Amounts reclassified from accumulated other comprehensive loss (7 ) (7 ) Transfer of held-to-maturity securities to available-for-sale securities (2) — 6 Net change 105 (129 ) Cumulative effect of hedge accounting adoption — (7 ) Reclassification of tax effects due to federal tax reform — (14 ) Balance, March 31, $ (170 ) $ (176 ) Other comprehensive income (loss) before reclassifications 64 (51 ) Amounts reclassified from accumulated other comprehensive loss 48 (8 ) Net change 112 (59 ) Balance, June 30, $ (58 ) $ (235 ) Other comprehensive income (loss) before reclassifications 43 (86 ) Amounts reclassified from accumulated other comprehensive loss (9 ) (8 ) Net change 34 (94 ) Accumulated other comprehensive loss, end of period (1) $ (24 ) $ (329 ) (1) The accumulated other comprehensive loss balances and activities were related to available-for-sale securities in both periods. (2) Securities with a carrying value of $4.7 billion and related unrealized pre-tax gain of $7 million , or $6 million net of tax, were transferred from held-to-maturity securities to available-for-sale securities during the three months ended March 31, 2018, as part of a one-time transition election for early adopting the new derivatives and hedge accounting guidance. The following table presents other comprehensive income (loss) activity and the related tax effect (dollars in millions): Three Months Ended September 30, 2019 2018 Before Tax Tax Effect After Tax Before Tax Tax Effect After Tax Other comprehensive income (loss) Available-for-sale securities: Unrealized gains (losses), net $ 58 $ (15 ) $ 43 $ (112 ) $ 26 $ (86 ) Reclassification into earnings, net (12 ) 3 (9 ) (11 ) 3 (8 ) Net change from available-for-sale securities 46 (12 ) 34 (123 ) 29 (94 ) Other comprehensive income (loss) $ 46 $ (12 ) $ 34 $ (123 ) $ 29 $ (94 ) Nine Months Ended September 30, 2019 2018 Before Tax Tax Effect After Tax Before Tax Tax Effect After Tax Other comprehensive income (loss) Available-for-sale securities: Unrealized gains (losses), net $ 294 $ (75 ) $ 219 $ (353 ) $ 88 $ (265 ) Reclassification into earnings, net 43 (11 ) 32 (32 ) 9 (23 ) Transfer of held-to-maturity securities to available-for-sale securities — — — 7 (1 ) 6 Net change from available-for-sale securities 337 (86 ) 251 (378 ) 96 (282 ) Other comprehensive income (loss) $ 337 $ (86 ) $ 251 $ (378 ) $ 96 $ (282 ) The following table presents the consolidated statement of income line items impacted by reclassifications out of accumulated other comprehensive loss (dollars in millions): Accumulated Other Comprehensive Loss Components Amounts Reclassified from Accumulated Other Comprehensive Loss Affected Line Items in the Consolidated Statement of Income Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Available-for-sale securities: $ 13 $ 12 $ (41 ) $ 34 Gains (losses) on securities and other, net (1 ) (1 ) (2 ) (2 ) Interest income 12 11 (43 ) 32 Reclassification into earnings, before tax (3 ) (3 ) 11 (9 ) Income tax benefit (expense) $ 9 $ 8 $ (32 ) $ 23 Reclassification into earnings, net |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 12—EARNINGS PER SHARE Net income available to common shareholders, or net income less preferred stock dividends, represents the numerator used in the computation of basic and diluted earnings per common share. The denominators used in the computation of basic and diluted earnings per common share are basic and diluted weighted average common shares outstanding, respectively. Basic weighted average common shares outstanding were 235.8 million and 241.7 million for the three and nine months ended September 30, 2019 , respectively, compared to 259.5 million and 263.3 million for the same periods in 2018. The difference between basic and diluted weighted average common shares outstanding includes the weighted-average dilutive impact of securities, including restricted stock units and awards, dividend equivalent units, employee stock purchase plan shares and stock options, as well as the weighted-average dilutive impact of convertible debentures. This activity represented 0.5 million shares for both the three and nine months ended September 30, 2019 , compared to 1.2 million and 1.1 million shares for the same periods in 2018, respectively. This resulted in diluted weighted average common shares outstanding of 236.3 million and 242.2 million for the three and nine months ended September 30, 2019 , respectively, compared to 260.7 million and 264.4 million |
Regulatory Requirements
Regulatory Requirements | 9 Months Ended |
Sep. 30, 2019 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
REGULATORY REQUIREMENTS | NOTE 13—REGULATORY REQUIREMENTS Broker-Dealer and FCM Capital Requirements The Company's US broker-dealer, E*TRADE Securities, is subject to the Uniform Net Capital Rule under the Securities Exchange Act of 1934 administered by the SEC and FINRA, which requires the maintenance of minimum net capital. The minimum net capital requirements can be met under either the Aggregate Indebtedness method or the Alternative method. Under the Aggregate Indebtedness method, a broker-dealer is required to maintain net capital equal to or in excess of the greater of 6 2/3% of its aggregate indebtedness, as defined, or a minimum dollar amount. E*TRADE Securities has elected the Alternative method, under which it is required to maintain net capital equal to the greater of $250,000 or 2% of aggregate debit balances arising from customer transactions. The Company's FCM, E*TRADE Futures, is subject to CFTC net capital requirements, including the maintenance of adjusted net capital equal to or in excess of the greater of (1) $1,000,000 , (2) the FCM's risk-based capital requirement, computed as 8% of the total risk margin requirements for all positions carried in customer and non-customer accounts, or (3) the amount of adjusted net capital required by the NFA. At September 30, 2019 and December 31, 2018 , all of the Company’s broker-dealer and FCM subsidiaries met applicable minimum net capital requirements. The following table presents a summary of the minimum net capital requirements and excess capital for the Company’s broker-dealer and FCM subsidiaries (dollars in millions): Required Net Capital Net Capital Excess Net Capital September 30, 2019: E*TRADE Securities (1) $ 221 $ 1,348 $ 1,127 E*TRADE Futures 2 27 25 Total (2) $ 223 $ 1,375 $ 1,152 December 31, 2018: E*TRADE Securities $ 209 $ 1,294 $ 1,085 E*TRADE Futures 1 26 25 International broker-dealer — 18 18 Total $ 210 $ 1,338 $ 1,128 (1) E*TRADE Securities paid dividends of $660 million to the parent company during the nine months ended September 30, 2019 . (2) The Company's international broker-dealer de-registered and entered into voluntary liquidation in May 2019. The international broker-dealer was not subject to minimum net capital requirements at September 30, 2019 . Bank Capital Requirements E*TRADE Financial and its bank subsidiaries, E*TRADE Bank and E*TRADE Savings Bank, are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can trigger certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the financial condition and results of operations of these entities. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, these entities must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. In addition, the Company's bank subsidiaries may not pay dividends to the parent company without the non-objection, or in certain cases the approval, of their regulators, and any loans by the bank subsidiaries to the parent company or its other non-bank subsidiaries are subject to various quantitative, arm’s length, collateralization and other requirements. The capital amounts and classifications of these entities are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require these entities to meet minimum Tier 1 leverage, Common Equity Tier 1 capital, Tier 1 risk-based capital and Total risk-based capital ratios. Events beyond management's control, such as deterioration in credit markets, could adversely affect future earnings and their ability to meet future capital requirements. E*TRADE Financial, E*TRADE Bank and E*TRADE Savings Bank were categorized as "well capitalized" under the regulatory framework for prompt corrective action for the periods presented in the following table (dollars in millions): September 30, 2019 December 31, 2018 Actual Well Capitalized Minimum Capital Excess Capital Actual Well Capitalized Minimum Capital Excess Capital Amount Ratio Amount Ratio Amount Amount Ratio Amount Ratio Amount E*TRADE Financial (1) Tier 1 leverage $ 4,044 6.9 % $ 2,940 5.0 % $ 1,104 $ 4,097 6.6 % $ 3,101 5.0 % $ 996 Common Equity Tier 1 $ 3,355 31.4 % $ 695 6.5 % $ 2,660 $ 3,408 31.1 % $ 713 6.5 % $ 2,695 Tier 1 risk-based $ 4,044 37.8 % $ 855 8.0 % $ 3,189 $ 4,097 37.3 % $ 877 8.0 % $ 3,220 Total risk-based $ 4,079 38.2 % $ 1,069 10.0 % $ 3,010 $ 4,143 37.8 % $ 1,097 10.0 % $ 3,046 E*TRADE Bank (1)(2) Tier 1 leverage $ 3,404 7.4 % $ 2,292 5.0 % $ 1,112 $ 3,484 7.1 % $ 2,461 5.0 % $ 1,023 Common Equity Tier 1 $ 3,404 37.2 % $ 595 6.5 % $ 2,809 $ 3,484 34.9 % $ 650 6.5 % $ 2,834 Tier 1 risk-based $ 3,404 37.2 % $ 732 8.0 % $ 2,672 $ 3,484 34.9 % $ 800 8.0 % $ 2,684 Total risk-based $ 3,431 37.5 % $ 916 10.0 % $ 2,515 $ 3,521 35.2 % $ 999 10.0 % $ 2,522 E*TRADE Savings Bank (1) Tier 1 leverage $ 1,472 41.9 % $ 176 5.0 % $ 1,296 $ 1,456 26.6 % $ 273 5.0 % $ 1,183 Common Equity Tier 1 $ 1,472 213.0 % $ 45 6.5 % $ 1,427 $ 1,456 169.4 % $ 56 6.5 % $ 1,400 Tier 1 risk-based $ 1,472 213.0 % $ 56 8.0 % $ 1,416 $ 1,456 169.4 % $ 69 8.0 % $ 1,387 Total risk-based $ 1,472 213.0 % $ 69 10.0 % $ 1,403 $ 1,456 169.4 % $ 86 10.0 % $ 1,370 (1) Basel III includes a capital conservation buffer that limits a banking organization’s ability to make capital distributions and discretionary bonus payments to executive officers if a banking organization fails to maintain a Common Equity Tier 1 capital conservation buffer of more than 2.5% , on a fully phased-in basis, of total risk-weighted assets above each of the following minimum risk-based capital ratio requirements: Common Equity Tier 1 capital ( 4.5% ), Tier 1 risk-based capital ( 6.0% ), and Total risk-based capital ( 8.0% ). This requirement was effective beginning on January 1, 2016, and became fully phased-in on January 1, 2019. (2) E*TRADE Bank paid dividends of $535 million to the parent company during the three months ended September 30, 2019. |
Commitments, Contingencies and
Commitments, Contingencies and Other Regulatory Matters | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND OTHER REGULATORY MATTERS | NOTE 14—COMMITMENTS, CONTINGENCIES AND OTHER REGULATORY MATTERS The Company reviews its lawsuits, regulatory inquiries and other legal proceedings on an ongoing basis and provides disclosure and records loss contingencies in accordance with the loss contingencies accounting guidance. The Company establishes an accrual for losses at management's best estimate when it assesses that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company monitors these matters for developments that would affect the likelihood of a loss and the accrued amount, if any, and adjusts the amount as appropriate. Litigation Matters On October 27, 2000, Ajaxo, Inc. (Ajaxo) filed a complaint in the Superior Court for the State of California, County of Santa Clara. Ajaxo sought damages and certain non-monetary relief for the Company’s alleged breach of a non-disclosure agreement with Ajaxo pertaining to certain wireless technology that Ajaxo offered the Company as well as damages and other relief against the Company for their alleged misappropriation of Ajaxo’s trade secrets. Following a jury trial, a judgment was entered in 2003 in favor of Ajaxo against the Company for $1 million for breach of the Ajaxo non-disclosure agreement. The trial court subsequently denied Ajaxo’s requests for additional damages and relief following which Ajaxo appealed. Although the Company paid Ajaxo the full amount due on the above-described judgment, the case was remanded back to the trial court by the California Court of Appeals, and on May 30, 2008, a jury returned a verdict in favor of the Company denying all claims raised and demands for damages against the Company. After various appeals the case was again remanded back to the trial court. Following the third trial in this matter, in a Judgment and Statement of Decision filed September 16, 2015, the Court denied all claims for royalties by Ajaxo. Ajaxo’s post-trial motions were denied. Ajaxo has appealed to the Court of Appeals, Sixth District. The Company will continue to defend itself vigorously in this matter. On May 13, 2019, a FINRA Dispute Resolution Statement of Claim was received on behalf of an E*TRADE customer and the customer's limited liability company. The Statement of Claim alleges that E*TRADE Securities and E*TRADE Capital Management violated Section 10(b) of the Securities Exchange Act, committed common law fraud, breached fiduciary duties, breached contractual duties, failed to supervise, and were negligent in the maintenance of the LLC’s accounts. The claim relates to margin liquidations from the LLC's accounts in February 2018. The Company intends to defend itself vigorously in this matter. In addition to the matters described above, the Company is subject to various legal proceedings and claims that arise in the normal course of business. In each pending matter, the Company contests liability or the amount of claimed damages. In view of the inherent difficulty of predicting the outcome of such matters, particularly in cases where claimants seek substantial or indeterminate damages, or where investigation or discovery have yet to be completed, the Company is unable to estimate a range of reasonably possible losses on its remaining outstanding legal proceedings; however, the Company believes any losses, both individually or in the aggregate, should not be reasonably likely to have a material adverse effect on the consolidated financial condition or results of operations of the Company. An unfavorable outcome in any matter could have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows. In addition, even if the ultimate outcomes are resolved in the Company’s favor, the defense of such litigation could entail considerable cost or the diversion of the efforts of management, either of which could have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows. Regulatory Matters The securities, futures, foreign currency and banking industries are subject to extensive regulation under federal, state and applicable international laws. From time to time, the Company has been threatened with or named as a defendant in lawsuits, arbitrations and administrative claims involving securities, banking and other matters. The Company is also subject to periodic regulatory examinations and inspections. Compliance and trading problems that are reported to regulators, such as the SEC, FINRA, NASDAQ, CFTC, NFA, FDIC, Federal Reserve Bank of Richmond, OCC, or the CFPB by dissatisfied customers or others are investigated by such regulators, and may, if pursued, result in formal claims being filed against the Company by customers or disciplinary action being taken against the Company or its employees by regulators. Any such claims or disciplinary actions that are decided against the Company could have a material impact on the financial results of the Company or any of its subsidiaries. Insurance The Company maintains insurance coverage that management believes is reasonable and prudent. The principal insurance coverage it maintains covers commercial general liability; property damage; hardware/software damage; cyber liability; directors and officers; employment practices liability; certain criminal acts against the Company; and errors and omissions. The Company believes that such insurance coverage is adequate for the purpose of its business. The Company’s ability to maintain this level of insurance coverage in the future, however, is subject to the availability of affordable insurance in the marketplace. Commitments In the normal course of business, the Company makes various commitments to extend credit and incur contingent liabilities that are not reflected in the consolidated balance sheet. Significant changes in the economy or interest rates may influence the impact that these commitments and contingencies have on the Company in the future. The Company’s equity method, cost method and other investments are generally limited liability investments in partnerships, companies and other similar entities, including tax credit partnerships and community development entities, which are not required to be consolidated. The Company had $53 million in unfunded contingent investment commitments with respect to these investments at September 30, 2019 . At September 30, 2019 , the Company had $15 million of certificates of deposit scheduled to mature in less than one year. Guarantees In prior periods when the Company sold loans, the Company provided guarantees to investors purchasing mortgage loans, which are considered standard representations and warranties within the mortgage industry. The primary guarantees are that: the mortgage and the mortgage note have been duly executed and each is the legal, valid and binding obligation of the Company, enforceable in accordance with its terms; the mortgage has been duly acknowledged and recorded and is valid; and the mortgage and the mortgage note are not subject to any right of rescission, set-off, counterclaim or defense, including, without limitation, the defense of usury, and no such right of rescission, set-off, counterclaim or defense has been asserted with respect thereto. The Company is responsible for the guarantees on loans sold. If these claims prove to be untrue, the investor can require the Company to repurchase the loan and return all loan purchase and servicing release premiums. Management does not believe the potential liability exposure will have a material impact on the Company’s results of operations, cash flows or financial condition due to the nature of the standard representations and warranties, which have resulted in a minimal amount of loan repurchases. |
Organization, Basis of Presen_2
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization E*TRADE Financial Corporation is a financial services company that provides brokerage and related products and services for traders, investors, stock plan administrators and participants, and RIAs. The Company also provides investor-focused banking products, including sweep deposit accounts insured by the FDIC, to customers. The Company's most significant, wholly-owned subsidiaries are described below: • E*TRADE Securities is a registered broker-dealer that clears and settles customer transactions • E*TRADE Bank is a federally chartered savings bank that provides FDIC insurance on certain qualifying amounts of customer deposits and provides other banking and cash management capabilities • E*TRADE Savings Bank, a subsidiary of E*TRADE Bank, is a federally chartered savings bank that provides FDIC insurance on certain qualifying amounts of customer deposits and provides custody solutions for RIAs • E*TRADE Financial Corporate Services is a provider of software and services for managing equity compensation plans to our corporate clients • E*TRADE Futures is a registered non-clearing FCM that provides retail futures transaction capabilities for our customers • E*TRADE Capital Management is an RIA that provides investment advisory services for our customers |
Basis of Accounting | Basis of Presentation The condensed consolidated financial statements, also referred to herein as the consolidated financial statements, include the accounts of the Company and its majority-owned subsidiaries as determined under the voting interest model. Entities in which the Company has the ability to exercise significant influence but in which the Company does not possess control are generally accounted for by the equity method. Entities in which the Company does not have the ability to exercise significant influence are generally carried at cost. The Company also evaluates its initial and continuing involvement with certain entities to determine if the Company is required to consolidate the entities under the variable interest entity (VIE) model. This evaluation is based on a qualitative assessment of whether the Company is the primary beneficiary of a VIE, which requires the Company to possess both: 1) the power to direct the activities that most significantly impact the economic performance of the VIE; and 2) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. There are no investments in which the Company represents the primary beneficiary of a VIE; therefore, there are no consolidated VIEs included for all periods presented. The Company's consolidated financial statements are prepared in accordance with GAAP. Intercompany accounts and transactions are eliminated in consolidation. These consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary to present fairly the financial position, results of operations and cash flows for the periods presented and should be read in conjunction with our 2018 Annual Report . |
Use of Estimates | Use of Estimates Preparing the Company's consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and related notes for the periods presented. Actual results could differ from management’s estimates. Certain significant accounting policies are critical because they are based on estimates and assumptions that require complex and subjective judgments by management including the allowance for loan losses, valuation and impairment of goodwill and acquired intangible assets, and income taxes. Management also makes estimates in recognizing accrued operating expenses and other liabilities. These liabilities are impacted by estimates for litigation and regulatory matters as well as estimates related to general operating expenses, such as incentive compensation and market data usage within communications expense. Management estimates reflect the liabilities deemed probable at the balance sheet date as determined as part of the Company's ongoing evaluations based on available information. |
New accounting pronouncements (policy) | Adoption of New Accounting Standards Accounting for Leases In February 2016, the FASB amended the guidance on accounting for leases. The new guidance required lessees to recognize right-of-use (ROU) assets and lease liabilities on the balance sheet for the rights and obligations created by all qualifying leases. The recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee remains substantially unchanged and depends on classification as a finance or operating lease. The Company adopted the new guidance beginning on January 1, 2019 and elected to use the effective date as the date of initial application. As such, restated financial information and the additional disclosures required under the new standard will not be provided for the comparative periods presented. The new guidance also requires quantitative and qualitative disclosures that provide information about the amounts related to leasing arrangements recorded in the consolidated financial statements. For further information, see Note 10—Lease Arrangements . The Company elected to apply the "package of practical expedients," which permits it to not reassess prior conclusions on existing leases regarding lease identification, lease classification and initial direct costs. In addition, the Company has elected to apply the short-term lease exception for lease arrangements with maximum lease terms of 12 months or less. The Company elected to not apply the use-of-hindsight practical expedient, and the practical expedient relating to land easements is not applicable. Adoption of the standard did not have a material impact on the Company’s results of operations or cash flows. At adoption, the Company recognized lease liabilities of $211 million , representing the present value of the remaining minimum fixed lease payments based on the incremental borrowing rates as of December 31, 2018 . Changes in lease liabilities are based on current period interest expense and cash payments. The Company also recognized ROU assets of $193 million at adoption, which represents the measurement of the lease liabilities, prepaid lease payments made to lessors, initial direct costs incurred by the Company and lease incentives received. Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes In October 2018, the FASB amended the guidance on hedge accounting. The amended guidance adds the OIS rate based on the SOFR to the list of permitted benchmark interest rates for hedge accounting purposes. The amended guidance became effective on January 1, 2019, and the Company adopted the guidance on a prospective basis for qualifying new or redesignated hedging relationships entered into on or after the date of adoption. The adoption did not have a material impact on the Company's financial condition, results of operations or cash flows. New Accounting Standards Not Yet Adopted Accounting for Credit Losses In June 2016, the FASB amended the guidance on accounting for credit losses and has subsequently issued clarifications and improvements. The amended guidance requires measurement of an allowance for credit losses for financial instruments, including loans and debt securities, and other commitments to extend credit held at the reporting date. For financial assets measured at amortized cost, factors such as historical performance, current conditions, and reasonable and supportable forecasts, including expected charge-off recoveries, will be used to estimate expected credit losses. The amended guidance will also result in credit losses on impaired available-for-sale debt securities being recorded through an allowance for credit losses. The FASB issued additional amended guidance during the second quarter of 2019 that clarified that the CECL standard allows for subsequent increases in the fair value of collateral for collateral-dependent loans to be recognized up to the amount previously charged-off. A loan is considered to be collateral-dependent when foreclosure is probable or when repayment is expected to be provided substantially through the sale of the underlying collateral when the borrower is experiencing financial difficulty. Additional amended transition guidance issued during the second quarter of 2019 allows entities to elect the fair value option on certain financial instruments, on an instrument-by-instrument basis; however, this fair value option election does not apply to held-to-maturity debt securities. The new guidance will be effective for interim and annual periods beginning January 1, 2020 and early adoption is permitted. The Company has continued to make progress in developing credit loss estimation methods for the mortgage loan portfolio. The Company does not expect that credit losses for the investment security portfolio, margin receivables, securities-based lending activities and other financial assets held at amortized cost will be material based on its current analysis and industry views. As of September 30, 2019, the Company expects to recognize an after-tax benefit related to mortgage loans of approximately $75 to $100 million as an adjustment to opening retained earnings at adoption on January 1, 2020. The expected benefit relates to the fair value of the underlying collateral for mortgage loans that were determined to be collateral-dependent and previously written down to the fair value of the underlying collateral. This adoption impact will be presented on the balance sheet as a “negative allowance” associated with these loans. When estimating the fair value of collateral, property valuations for these one- to four- family and home equity loans are based on the most recent "as is" property valuation data available, which may include appraisals, broker price opinions, automated valuation models or updated values using home price indices. These property valuations are then reduced for qualifying estimated costs to sell. These costs do not include carrying costs or other disallowed adjustments, such as estimates for prolonged foreclosure proceedings associated with certain jurisdictions. The expected impact includes the expected credit losses related to the remaining mortgage loans. The Company employed a probability of default and loss given default model for determining the CECL allowance for these mortgage loans, which utilized prepayment forecasts, loan amortization calculations, and other internally derived and externally sourced data and assumptions. Key inputs for the forecast included US home prices and unemployment data. The CECL impact for this portfolio is not expected to be material based on the seasoning of the Company’s mortgage loan portfolio and the credit quality of the remaining loans. The Company utilized an externally provided macroeconomic forecast over the remaining life of the loans. This forecast includes a forward-looking view of macroeconomic factors over the next two to five years, after which the macroeconomic factors revert to externally provided long-term equilibrium values, rates, or patterns that do not include specific predictions for the economy. The Company's focus for the remainder of 2019 will be the continued development and refinement of its credit loss estimation methods, the development of policies and procedures in support of implementation, testing and validation of credit loss estimation methods, and the completion of parallel runs of credit loss modeling. The Company's evaluation of the impact of the guidance contemplates the recent performance of the run-off legacy mortgage and consumer loan portfolio and the credit profile of the current investment securities portfolio; however, the impact will depend on the current and expected macroeconomic conditions and the nature and characteristics of financial assets held by the Company on the date of adoption. Simplifying the Test for Goodwill Impairment In January 2017, the FASB amended the guidance to simplify the test for goodwill impairment by eliminating Step 2 from the goodwill impairment test. The amended guidance requires the Company to perform its annual goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge would be recognized at the amount by which the carrying amount exceeds the fair value of the reporting unit; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Income tax effects resulting from any tax deductible goodwill should be considered when measuring the goodwill impairment loss, if applicable. The Company will still have the option to perform a qualitative assessment to conclude whether it is more likely than not that the carrying amount of the Company exceeds its fair value. The guidance will be effective for interim and annual periods beginning January 1, 2020, and must be applied prospectively. Early adoption is permitted. Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract In August 2018, the FASB amended the guidance on accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. The amended guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new guidance will be effective for interim and annual periods beginning on January 1, 2020, and should be applied either retrospectively or prospectively. The Company will adopt prospectively and is currently finalizing modifications to the accounting processes necessary for adoption. Codification Improvements Related to Credit Losses, Financial Instruments, Derivatives and Hedging In April 2019, the FASB clarified recently released guidance related to credit losses, financial instruments, derivatives and hedging. The FASB has an ongoing project on its agenda for improving the FASB's Accounting Standards Codification or correcting its unintended application. The guidance will be effective for interim and annual periods beginning January 1, 2020. The Company is currently evaluating the impact of these clarifications on the Company's financial condition, results of operations and cash flows. |
Net Revenue (Tables)
Net Revenue (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenues [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table presents the significant components of fees and service charges (dollars in millions): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Fees and service charges: Money market funds and sweep deposits revenue $ 62 $ 18 $ 106 $ 53 Order flow revenue 46 40 134 130 Advisor management and custody fees 19 19 56 46 Mutual fund service fees 13 13 38 36 Foreign exchange revenue 8 7 24 21 Reorganization fees 5 3 18 10 Other fees and service charges 10 8 31 27 Total fees and service charges $ 163 $ 108 $ 407 $ 323 The following table presents the significant components of total net revenue (dollars in millions): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net interest income $ 455 $ 466 $ 1,437 $ 1,364 Commissions 122 117 365 375 Fees and service charges 163 108 407 323 Gains (losses) on securities and other, net 16 17 (37 ) 42 Other revenue 11 12 35 34 Total net revenue (1) $ 767 $ 720 $ 2,207 $ 2,138 (1) Contract balances and transaction price allocated to remaining performance obligations were not material for the periods presented. |
Interest Income and Interest Expense Disclosure | The following table presents the significant components of interest income and interest expense (dollars in millions): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Interest income: Cash and equivalents $ 2 $ 2 $ 8 $ 7 Cash segregated under federal or other regulations 7 4 19 11 Investment securities 324 315 1,057 908 Margin receivables 120 130 376 351 Loans 25 32 81 98 Broker-related receivables and other 5 4 12 12 Subtotal interest income 483 487 1,553 1,387 Other interest revenue (1) 38 27 83 84 Total interest income 521 514 1,636 1,471 Interest expense: Sweep deposits 11 14 49 23 Savings deposits 27 2 65 3 Customer payables 7 8 24 13 Broker-related payables and other 2 3 4 7 Other borrowings 1 6 7 21 Corporate debt 14 13 42 32 Subtotal interest expense 62 46 191 99 Other interest expense (2) 4 2 8 8 Total interest expense 66 48 199 107 Net interest income $ 455 $ 466 $ 1,437 $ 1,364 (1) Other interest revenue is earned on certain securities loaned balances. Interest expense incurred on other securities loaned balances is presented on the broker-related payables and other line item above. (2) Other interest expense is incurred on certain securities borrowed balances. Interest income earned on other securities borrowed balances is presented on the broker-related receivables and other line item above. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Inputs, Assets, Quantitative Information | The following table presents additional information about significant unobservable inputs used in the valuation of assets measured at fair value on a nonrecurring basis that were categorized in Level 3 of the fair value hierarchy: Unobservable Inputs Average Range September 30, 2019: Loans receivable: One- to four-family Appraised value $ 742,000 $92,000 - $2,700,000 Home equity Appraised value $ 405,200 $115,000 - $1,440,000 Real estate owned Appraised value $ 387,500 $30,000 - $1,050,000 December 31, 2018: Loans receivable: One- to four-family Appraised value $ 594,700 $17,000 - $2,000,000 Home equity Appraised value $ 397,700 $73,000 - $1,060,000 Real estate owned Appraised value $ 329,500 $57,900 - $900,000 |
Fair Value Measurements, Recurring and Nonrecurring | Level 1 Level 2 Level 3 Total December 31, 2018: Recurring fair value measurements: Assets Available-for-sale securities: Agency mortgage-backed securities $ — $ 22,162 $ — $ 22,162 Agency debentures — 839 — 839 Agency debt securities — 139 — 139 Municipal bonds — 12 — 12 Other — 1 — 1 Total available-for-sale securities — 23,153 — 23,153 Derivative assets (1) — 1 — 1 Publicly traded equity securities (2) 7 — — 7 Total assets measured at fair value on a recurring basis (3) $ 7 $ 23,154 $ — $ 23,161 Nonrecurring fair value measurements: Loans receivable, net: One- to four-family $ — $ — $ 17 $ 17 Home equity — — 6 6 Total loans receivable — — 23 23 Other assets: Real estate owned — — 10 10 Total assets measured at fair value on a nonrecurring basis (4) $ — $ — $ 33 $ 33 (1) All derivative assets were interest rate contracts at December 31, 2018. Information related to derivative instruments is detailed in Note 7—Derivative Instruments and Hedging Activities . (2) Consists of investments in a mutual fund related to the CRA. At December 31, 2018, these equity securities are included in other assets on the consolidated balance sheet as a result of the adoption of amended accounting guidance. (3) Assets measured at fair value on a recurring basis represented 36% of the Company’s total assets at December 31, 2018. (4) Represents the fair value of assets prior to deducting estimated selling costs that were carried on the consolidated balance sheet at December 31, 2018, and for which a fair value measurement was recorded during the period. The following tables present the significant components of assets and liabilities measured at fair value (dollars in millions): Level 1 Level 2 Level 3 Total Fair Value September 30, 2019: Recurring fair value measurements: Assets Available-for-sale securities: Agency mortgage-backed securities $ — $ 18,514 $ — $ 18,514 Agency debentures — 673 — 673 US Treasuries — 1,349 — 1,349 Non-agency asset-backed securities — 369 — 369 Non-agency mortgage-backed securities — 114 — 114 Other — 1 — 1 Total available-for-sale securities — 21,020 — 21,020 Publicly traded equity securities (1) 7 — — 7 Total assets measured at fair value on a recurring basis (2) $ 7 $ 21,020 $ — $ 21,027 Nonrecurring fair value measurements: Loans receivable, net: One- to four-family $ — $ — $ 13 $ 13 Home equity — — 4 4 Total loans receivable — — 17 17 Other assets: Real estate owned — — 12 12 Total assets measured at fair value on a nonrecurring basis (3) $ — $ — $ 29 $ 29 (1) Consists of investments in a mutual fund related to the Community Reinvestment Act (CRA). (2) Assets measured at fair value on a recurring basis represented 34% of the Company’s total assets at September 30, 2019 . (3) Represents the fair value of assets prior to deducting estimated selling costs that were carried on the consolidated balance sheet at September 30, 2019 , and for which a fair value measurement was recorded during the period. |
Fair Value, by Balance Sheet Grouping | The following tables present the carrying values, fair values and fair value hierarchy level classification of financial instruments that are not carried at fair value on the consolidated balance sheet (dollars in millions): September 30, 2019 Carrying Value Level 1 Level 2 Level 3 Total Fair Value Assets Cash and equivalents $ 493 $ 493 $ — $ — $ 493 Cash segregated under federal or other regulations $ 1,365 $ 1,365 $ — $ — $ 1,365 Held-to-maturity securities: Agency mortgage-backed securities $ 19,563 $ — $ 19,880 $ — $ 19,880 Agency debentures 327 — 333 — 333 Agency debt securities 1,652 — 1,699 — 1,699 Total held-to-maturity securities $ 21,542 $ — $ 21,912 $ — $ 21,912 Margin receivables (1) $ 9,859 $ — $ 9,859 $ — $ 9,859 Loans receivable, net: One- to four-family $ 860 $ — $ — $ 897 $ 897 Home equity 661 — — 701 701 Consumer 84 — — 83 83 Securities-based lending 142 — 142 — 142 Total loans receivable, net (2) $ 1,747 $ — $ 142 $ 1,681 $ 1,823 Receivables from brokers, dealers and clearing organizations (1) $ 1,038 $ — $ 1,038 $ — $ 1,038 Other assets (1)(3) $ 357 $ — $ 357 $ — $ 357 Liabilities Deposits $ 40,382 $ — $ 40,382 $ — $ 40,382 Customer payables $ 11,183 $ — $ 11,183 $ — $ 11,183 Payables to brokers, dealers and clearing organizations $ 1,091 $ — $ 1,091 $ — $ 1,091 Corporate debt $ 1,410 $ — $ 1,484 $ — $ 1,484 (1) The fair value of securities that the Company received as collateral in connection with margin receivables and securities borrowing activities, including the fully paid lending program, where the Company is permitted to sell or re-pledge the securities, was $14.0 billion at September 30, 2019 . Of this amount, $2.3 billion had been pledged or sold in connection with securities loaned and deposits with clearing organizations at September 30, 2019 . (2) The carrying value of loans receivable, net includes the allowance for loan losses of $27 million and loans that are recorded at fair value on a nonrecurring basis at September 30, 2019 . (3) Includes $250 million of securities purchased under agreements to resell and $107 million of securities borrowing from customers under the fully paid lending program. The fair value of the securities that the Company received as collateral for securities purchased under agreements to resell was $258 million at September 30, 2019 December 31, 2018 Carrying Level 1 Level 2 Level 3 Total Assets Cash and equivalents $ 2,333 $ 2,333 $ — $ — $ 2,333 Cash segregated under federal or other regulations $ 1,011 $ 1,011 $ — $ — $ 1,011 Held-to-maturity securities: Agency mortgage-backed securities $ 18,085 $ — $ 17,748 $ — $ 17,748 Agency debentures 1,824 — 1,808 — 1,808 Agency debt securities 1,975 — 1,935 — 1,935 Total held-to-maturity securities $ 21,884 $ — $ 21,491 $ — $ 21,491 Margin receivables (1) $ 9,560 $ — $ 9,560 $ — $ 9,560 Loans receivable, net: One- to four-family $ 1,069 $ — $ — $ 1,099 $ 1,099 Home equity 810 — — 825 825 Consumer 117 — — 115 115 Securities-based lending 107 — 107 — 107 Total loans receivable, net (2) $ 2,103 $ — $ 107 $ 2,039 $ 2,146 Receivables from brokers, dealers and clearing organizations (1) $ 760 $ — $ 760 $ — $ 760 Other assets (1)(3) $ 36 $ — $ 36 $ — $ 36 Liabilities Deposits $ 45,313 $ — $ 45,313 $ — $ 45,313 Customer payables $ 10,117 $ — $ 10,117 $ — $ 10,117 Payables to brokers, dealers and clearing organizations $ 948 $ — $ 948 $ — $ 948 Corporate debt $ 1,409 $ — $ 1,372 $ — $ 1,372 (1) The fair value of securities that the Company received as collateral in connection with margin receivables and securities borrowing activities, including the fully paid lending program, where the Company is permitted to sell or re-pledge the securities, was $12.9 billion at December 31, 2018. Of this amount, $2.3 billion had been pledged or sold in connection with securities loaned and deposits with clearing organizations at December 31, 2018. (2) The carrying value of loans receivable, net includes the allowance for loan losses of $37 million and loans that are recorded at fair value on a nonrecurring basis at December 31, 2018. (3) The $36 million in other assets at December 31, 2018 represents securities borrowing from customers under the fully paid lending program. |
Offsetting Assets and Liabili_2
Offsetting Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Offsetting Assets and Liabilities [Abstract] | |
Offsetting Assets and Liabilities [Table Text Block] | The following table presents information about these transactions to enable the users of the Company’s consolidated financial statements to evaluate the potential effect of rights of set-off between these recognized assets and liabilities (dollars in millions): Gross Amounts Not Offset in the Consolidated Balance Sheet Gross Amounts of Recognized Assets and Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts Presented in the Consolidated Balance Sheet (1)(2) Financial Instruments Collateral Received or Pledged (Including Cash) Net Amount September 30, 2019: Assets: Securities purchased under agreements to resell (3) $ 250 $ — $ 250 $ — $ (250 ) $ — Securities borrowed (4) 728 — 728 (76 ) (629 ) 23 Total $ 978 $ — $ 978 $ (76 ) $ (879 ) $ 23 Liabilities: Securities loaned (5) $ 1,028 $ — $ 1,028 $ (76 ) $ (862 ) $ 90 Total $ 1,028 $ — $ 1,028 $ (76 ) $ (862 ) $ 90 December 31, 2018: Assets: Securities borrowed (4) $ 176 $ — $ 176 $ (104 ) $ (61 ) $ 11 Total $ 176 $ — $ 176 $ (104 ) $ (61 ) $ 11 Liabilities: Securities loaned (5) $ 887 $ — $ 887 $ (104 ) $ (700 ) $ 83 Total $ 887 $ — $ 887 $ (104 ) $ (700 ) $ 83 (1) Securities purchased under agreements to resell are included in the other assets line item in the consolidated balance sheet. (2) The vast majority of the net amount of cash collateral paid for securities borrowed are reflected in the receivables from brokers, dealers and clearing organizations line item while the cash collateral paid for securities borrowed under the fully paid lending program are reflected in other assets. Cash collateral received for securities loaned are reflected in the payables to brokers, dealers and clearing organizations line item in the consolidated balance sheet. (3) Over-collateralized at September 30, 2019, as the market value of the securities received by the Company was $258 million . (4) Included in the gross amounts of cash collateral paid for securities borrowed was $501 million and $65 million at September 30, 2019 and December 31, 2018 , respectively, transacted through a program with a clearing organization, which guarantees the return of cash to the Company. For presentation purposes, these amounts presented are based on the counterparties under the Company’s master securities loan agreements. (5) Included in the gross amounts of cash collateral received for securities loaned was $593 million and $543 million at September 30, 2019 and December 31, 2018 , respectively, transacted through a program with a clearing organization, which guarantees the return of securities to the Company. For presentation purposes, these amounts presented are based on the counterparties under the Company’s master securities loan agreements. |
Available-for-Sale and Held-t_2
Available-for-Sale and Held-to-Maturity Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments Securities | The following table presents the amortized cost and fair value of available-for-sale and held-to-maturity securities (dollars in millions): Amortized Cost Gross Unrealized / Unrecognized Gains Gross Unrealized / Unrecognized Losses Fair Value September 30, 2019: Available-for-sale securities: Agency mortgage-backed securities $ 17,464 $ 1,095 $ (45 ) $ 18,514 Agency debentures 639 34 — 673 US Treasuries 1,287 73 (11 ) 1,349 Non-agency asset-backed securities (1) 368 2 (1 ) 369 Non-agency mortgage-backed securities 108 6 — 114 Other 1 — — 1 Total available-for-sale securities $ 19,867 $ 1,210 $ (57 ) $ 21,020 Held-to-maturity securities: Agency mortgage-backed securities $ 19,563 $ 359 $ (42 ) $ 19,880 Agency debentures 327 6 — 333 Other agency debt securities 1,652 48 (1 ) 1,699 Total held-to-maturity securities $ 21,542 $ 413 $ (43 ) $ 21,912 December 31, 2018: Available-for-sale securities: Agency mortgage-backed securities $ 22,140 $ 327 $ (305 ) $ 22,162 Agency debentures 833 13 (7 ) 839 Other agency debt securities 140 1 (2 ) 139 Municipal bonds 12 — — 12 Other 1 — — 1 Total available-for-sale securities $ 23,126 $ 341 $ (314 ) $ 23,153 Held-to-maturity securities: Agency mortgage-backed securities $ 18,085 $ 26 $ (363 ) $ 17,748 Agency debentures 1,824 — (16 ) 1,808 Other agency debt securities 1,975 4 (44 ) 1,935 Total held-to-maturity securities $ 21,884 $ 30 $ (423 ) $ 21,491 (1) Non-agency ABS collateralized by credit card, automobile loan and student loan receivables represented approximately 61% , 21% and 18% , respectively, of the non-agency ABS held at September 30, 2019. |
Investments Classified by Contractual Maturity Date | The following table presents the contractual maturities of all available-for-sale and held-to-maturity debt securities (dollars in millions): September 30, 2019 Amortized Cost Fair Value Available-for-sale debt securities: Due within one year $ 103 $ 103 Due within one to five years 311 314 Due within five to ten years 9,464 10,391 Due after ten years 9,989 10,212 Total available-for-sale debt securities $ 19,867 $ 21,020 Held-to-maturity debt securities: Due within one year $ 23 $ 23 Due within one to five years 2,094 2,133 Due within five to ten years 3,137 3,236 Due after ten years 16,288 16,520 Total held-to-maturity debt securities $ 21,542 $ 21,912 |
Schedule of Unrealized Loss on Investments | The following table presents the fair value and unrealized or unrecognized losses on available-for-sale and held-to-maturity securities, and the length of time that individual securities have been in a continuous unrealized or unrecognized loss position (dollars in millions): Less than 12 Months 12 Months or More Total Fair Value Unrealized / Unrecognized Losses Fair Value Unrealized / Unrecognized Losses Fair Value Unrealized / Unrecognized Losses September 30, 2019: Available-for-sale securities: Agency mortgage-backed securities $ 843 $ (4 ) $ 3,118 $ (41 ) $ 3,961 $ (45 ) US Treasuries 429 (11 ) — — 429 (11 ) Non-agency asset-backed securities 203 (1 ) — — 203 (1 ) Total temporarily impaired available-for-sale securities $ 1,475 $ (16 ) $ 3,118 $ (41 ) $ 4,593 $ (57 ) Held-to-maturity securities: Agency mortgage-backed securities $ 403 $ (3 ) $ 4,166 $ (39 ) $ 4,569 $ (42 ) Agency debentures — — 35 — 35 — Other agency debt securities — — 143 (1 ) 143 (1 ) Total temporarily impaired held-to-maturity securities $ 403 $ (3 ) $ 4,344 $ (40 ) $ 4,747 $ (43 ) December 31, 2018: Available-for-sale securities: Agency mortgage-backed securities $ 2,945 $ (34 ) $ 7,826 $ (271 ) $ 10,771 $ (305 ) Agency debentures 383 (1 ) 116 (6 ) 499 (7 ) Other agency debt securities — — 30 (2 ) 30 (2 ) Municipal bonds — — 9 — 9 — Other 1 — — — 1 — Total temporarily impaired available-for-sale securities $ 3,329 $ (35 ) $ 7,981 $ (279 ) $ 11,310 $ (314 ) Held-to-maturity securities: Agency mortgage-backed securities $ 2,802 $ (31 ) $ 11,587 $ (332 ) $ 14,389 $ (363 ) Agency debentures 776 (2 ) 666 (14 ) 1,442 (16 ) Other agency debt securities 97 (1 ) 1,487 (43 ) 1,584 (44 ) Total temporarily impaired held-to-maturity securities $ 3,675 $ (34 ) $ 13,740 $ (389 ) $ 17,415 $ (423 ) |
Gains on Securities and Other, Net | The following table presents the components of gains (losses) on securities and other, net (dollars in millions): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Gains (losses) on available-for-sale securities, net: Gains on available-for-sale securities (1)(2) $ 14 $ 65 $ 40 $ 87 Losses on available-for-sale securities (1)(2) — (54 ) (80 ) (54 ) Subtotal 14 11 (40 ) 33 Equity method investment income and other (3) 2 6 3 9 Gains (losses) on securities and other, net $ 16 $ 17 $ (37 ) $ 42 (1) In June 2019, the Company repositioned its balance sheet through the sales of $4.5 billion of lower-yielding investment securities. These sales enabled the reduction of our balance sheet size and the Company moved $6.6 billion of deposits to third-party banks generating additional capital capacity to support future share repurchases. Gains (losses) on securities and other, net for the nine months ended September 30, 2019 includes $80 million of losses related to these sales. (2) In August 2018, the Company sold available-for-sale securities and reinvested the sale proceeds in agency-backed securities at current market rates. A subset of these securities had been purchased in lower interest rate environments and were in unrealized loss positions at the time of sale. As both the change in intent related to these securities and the sale of these securities occurred within the same reporting period, the Company presented the losses on the sale of these securities within the gains on securities and other, net line item. (3) Includes a $5 million gain on the sale of our Chicago Stock Exchange investment for the three and nine months ended September 30, 2018. |
Loans Receivable, Net (Tables)
Loans Receivable, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Total Loans Receivable, Net | The following table presents loans receivable disaggregated by delinquency status (dollars in millions): Days Past Due Current 30-89 90-179 180+ Total Unamortized Premiums, Net Allowance for Loans Losses Loans Receivable, Net September 30, 2019: One- to four-family $ 777 $ 37 $ 8 $ 39 $ 861 $ 5 $ (6 ) $ 860 Home equity 633 21 9 17 680 — (19 ) 661 Consumer 83 2 — — 85 1 (2 ) 84 Securities-based lending (1) 142 — — — 142 — — 142 Total loans receivable $ 1,635 $ 60 $ 17 $ 56 $ 1,768 $ 6 $ (27 ) $ 1,747 December 31, 2018: One- to four-family $ 958 $ 48 $ 9 $ 56 $ 1,071 $ 7 $ (9 ) $ 1,069 Home equity 774 25 13 24 836 — (26 ) 810 Consumer 117 1 — — 118 1 (2 ) 117 Securities-based lending (1) 107 — — — 107 — — 107 Total loans receivable $ 1,956 $ 74 $ 22 $ 80 $ 2,132 $ 8 $ (37 ) $ 2,103 (1) E*TRADE Line of Credit is a securities-based lending product where customers can borrow against the market value of their securities pledged as collateral. The unused credit line amount totaled $310 million and $173 million as of September 30, 2019 and December 31, 2018, respectively. |
Credit Quality Indicators for Loan Portfolio | The following tables present the distribution of the Company’s mortgage loan portfolios by credit quality indicator (dollars in millions): One- to Four-Family Home Equity September 30, December 31, September 30, December 31, Current LTV/CLTV (1) 2019 2018 2019 2018 <=80% $ 706 $ 823 $ 393 $ 454 80%-100% 102 165 169 215 100%-120% 31 45 77 110 >120% 22 38 41 57 Total mortgage loans receivable $ 861 $ 1,071 $ 680 $ 836 Average estimated current LTV/CLTV (2) 62 % 66 % 77 % 80 % Average LTV/CLTV at loan origination (3) 70 % 70 % 82 % 82 % (1) Current CLTV calculations for home equity loans are based on the maximum available line for HELOCs and outstanding principal balance for HEILs. For home equity loans in the second lien position, the original balance of the first lien loan at origination date and updated valuations on the property underlying the loan are used to calculate CLTV. Current property value estimates are updated on a quarterly basis. (2) The average estimated current LTV/CLTV ratio reflects the outstanding balance at the balance sheet date and the maximum available line for HELOCs, divided by the estimated current value of the underlying property. (3) Average LTV/CLTV at loan origination calculations are based on LTV/CLTV at time of purchase for one- to four-family purchased loans, HEILs and the maximum available line for HELOCs. One- to Four-Family Home Equity September 30, December 31, September 30, December 31, Current FICO 2019 2018 2019 2018 >=720 $ 498 $ 617 $ 357 $ 442 719 - 700 68 89 63 78 699 - 680 66 80 58 70 679 - 660 45 66 48 56 659 - 620 69 79 62 80 <620 115 140 92 110 Total mortgage loans receivable $ 861 $ 1,071 $ 680 $ 836 |
Loans by Delinquency Category and Non-Performing Loans | The following table presents nonperforming loans by loan portfolio (dollars in millions): September 30, 2019 December 31, 2018 One- to four-family $ 118 $ 139 Home equity 58 71 Total nonperforming loans receivable $ 176 $ 210 |
Loans Receivable, Allowance for Loan Losses | The following table presents the total recorded investment in loans receivable and allowance for loan losses by loans that have been collectively evaluated for impairment and those that have been individually evaluated for impairment by loan portfolio (dollars in millions): Recorded Investment Allowance for Loan Losses September 30, December 31, September 30, December 31, 2019 2018 2019 2018 Collectively evaluated for impairment: One- to four-family $ 694 $ 891 $ 1 $ 4 Home equity 561 698 2 7 Consumer 86 119 2 2 Securities-based lending 142 107 — — Total collectively evaluated for impairment 1,483 1,815 5 13 Individually evaluated for impairment: One- to four-family 172 187 5 5 Home equity 119 138 17 19 Total individually evaluated for impairment 291 325 22 24 Total $ 1,774 $ 2,140 $ 27 $ 37 The following table presents a roll forward by loan portfolio of the allowance for loan losses (dollars in millions): Three Months Ended September 30, 2019 One- to Four-Family Home Equity Consumer Total Allowance for loan losses, beginning of period $ 9 $ 19 $ 2 $ 30 Provision (benefit) for loan losses (5 ) (6 ) (1 ) (12 ) Charge-offs (1) — — — — Recoveries 2 6 1 9 Net (charge-offs) recoveries 2 6 1 9 Allowance for loan losses, end of period (2) $ 6 $ 19 $ 2 $ 27 Three Months Ended September 30, 2018 One- to Four-Family Home Equity Consumer Total Allowance for loan losses, beginning of period $ 16 $ 36 $ 2 $ 54 Provision (benefit) for loan losses (6 ) (28 ) — (34 ) Charge-offs (1) — — (1 ) (1 ) Recoveries (3) 2 19 1 22 Net (charge-offs) recoveries 2 19 — 21 Allowance for loan losses, end of period (2) $ 12 $ 27 $ 2 $ 41 Nine Months Ended September 30, 2019 One- to Four-Family Home Equity Consumer Total Allowance for loan losses, beginning of period $ 9 $ 26 $ 2 $ 37 Provision (benefit) for loan losses (8 ) (24 ) — (32 ) Charge-offs (1) — — (2 ) (2 ) Recoveries 5 17 2 24 Net (charge-offs) recoveries 5 17 — 22 Allowance for loan losses, end of period (2) $ 6 $ 19 $ 2 $ 27 Nine Months Ended September 30, 2018 One- to Home Consumer Total Allowance for loan losses, beginning of period $ 24 $ 46 $ 4 $ 74 Provision (benefit) for loan losses (17 ) (56 ) (1 ) (74 ) Charge-offs (1) (1 ) — (3 ) (4 ) Recoveries (3) 6 37 2 45 Net (charge-offs) recoveries 5 37 (1 ) 41 Allowance for loan losses, end of period (2) $ 12 $ 27 $ 2 $ 41 (1) Includes benefits resulting from recoveries of partial charge-offs due to principal paydowns or payoffs for the periods presented. The benefits included in the charge-offs line item exceeded other charge-offs for both one-to-four family and home equity loan portfolios during the three months ended September 30, 2018 and 2019, respectively, and for the nine months ended September 30, 2019. The benefits included in the charge-offs line item exceeded other charge-offs for the home equity loan portfolio during the nine months ended September 30, 2018. (2) Securities-based lending loans were fully collateralized by cash and securities with fair values in excess of borrowings for both the three and nine months ended September 30, 2019 and September 30, 2018 , respectively. (3) Includes $10 million of recoveries recognized during the three months ended September 30, 2018 and $15 million of recoveries recognized during the nine months ended September 30, 2018 related to the sale of previously charged-off home equity loans. The following table presents the allowance for loan losses by loan portfolio (dollars in millions): September 30, 2019 One- to Four-Family Home Equity Consumer Total (1) General reserve: Quantitative component $ 1 $ 3 $ 2 $ 6 Qualitative component — (1 ) — (1 ) Specific valuation allowance 5 17 — 22 Total allowance for loan losses $ 6 $ 19 $ 2 $ 27 Allowance as a % of loans receivable (2) 0.7 % 2.8 % 1.6 % 1.5 % December 31, 2018 One- to Four-Family Home Equity Consumer Total (1) General reserve: Quantitative component $ 4 $ 6 $ 2 $ 12 Qualitative component — 1 — 1 Specific valuation allowance 5 19 — 24 Total allowance for loan losses $ 9 $ 26 $ 2 $ 37 Allowance as a % of loans receivable (2) 0.8 % 3.1 % 1.0 % 1.7 % (1) Securities-based lending loans were fully collateralized by cash and securities with fair values in excess of borrowings at both September 30, 2019 and December 31, 2018, respectively. (2) Allowance as a percentage of loans receivable is calculated based on the gross loans receivable including net unamortized premiums for each respective category. |
Impaired Financing Receivables | The following table presents detailed information related to the Company’s TDRs and specific valuation allowances (dollars in millions): September 30, 2019 December 31, 2018 Recorded Investment in TDRs Specific Valuation Allowance Net Investment in TDRs Recorded Investment in TDRs Specific Valuation Allowance Net Investment in TDRs With a recorded allowance: One- to four-family $ 47 $ 5 $ 42 $ 50 $ 5 $ 45 Home equity $ 52 $ 17 $ 35 $ 60 $ 19 $ 41 Without a recorded allowance: (1) One- to four-family $ 125 $ — $ 125 $ 137 $ — $ 137 Home equity $ 67 $ — $ 67 $ 78 $ — $ 78 Total: One- to four-family $ 172 $ 5 $ 167 $ 187 $ 5 $ 182 Home equity $ 119 $ 17 $ 102 $ 138 $ 19 $ 119 (1) Represents loans where the discounted cash flow analysis or collateral value is equal to or exceeds the recorded investment in the loan. The following table presents a summary of the Company’s recorded investment in TDRs that were on accrual and nonaccrual status, further disaggregated by delinquency status (dollars in millions): Nonaccrual TDRs Accrual TDRs (1) Current (2) 30-89 Days Delinquent 90-179 Days Delinquent 180+ Days Delinquent Total Recorded Investment in TDRs (3)(4) September 30, 2019: One- to four-family $ 83 $ 60 $ 10 $ 2 $ 17 $ 172 Home equity 78 22 7 3 9 119 Total $ 161 $ 82 $ 17 $ 5 $ 26 $ 291 December 31, 2018: One- to four-family $ 87 $ 61 $ 12 $ 4 $ 23 $ 187 Home equity 90 23 8 5 12 138 Total $ 177 $ 84 $ 20 $ 9 $ 35 $ 325 (1) Represents loans modified as TDRs that are current and have made six or more consecutive payments. (2) Represents loans modified as TDRs that are current but have not yet made six consecutive payments, bankruptcy loans and certain junior lien TDRs that have a delinquent senior lien. (3) Total recorded investment in TDRs includes premium (discount), as applicable, and is net of charge-offs, which were $48 million and $102 million for one-to four-family and home equity loans, respectively, as of September 30, 2019 and $55 million and $121 million , respectively, as of December 31, 2018 . (4) Total recorded investment in TDRs at September 30, 2019 consisted of $231 million of loans modified as TDRs and $60 million of loans that have been charged off due to bankruptcy notification. Total recorded investment in TDRs at December 31, 2018 consisted of $253 million of loans modified as TDRs and $72 million of loans that have been charged off due to bankruptcy notification. The following table presents the monthly average recorded investment and interest income recognized both on a cash and accrual basis for the Company's TDRs (dollars in millions): Average Recorded Investment Interest Income Recognized Three Months Ended September 30, Three Months Ended September 30, 2019 2018 2019 2018 One- to four-family $ 175 $ 198 $ 2 $ 2 Home equity 122 148 2 4 Total $ 297 $ 346 $ 4 $ 6 Average Recorded Investment Interest Income Recognized Nine Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 One- to four-family $ 179 $ 205 $ 6 $ 6 Home equity 129 156 8 10 Total $ 308 $ 361 $ 14 $ 16 |
Troubled Debt Restructurings - Modifications | The following table presents the number of loans and post-modification balances immediately after being modified by major class (dollars in millions): Three Months Ended Interest Rate Reduction Number of Re-age/ Other with Other (1) Total September 30, 2019: One- to four-family 7 $ 4 $ — $ 1 $ 5 Home equity 15 1 — — 1 Total 22 $ 5 $ — $ 1 $ 6 September 30, 2018: One- to four-family 11 $ 2 $ — $ 2 $ 4 Home equity 15 — — 1 1 Total 26 $ 2 $ — $ 3 $ 5 Nine Months Ended Interest Rate Reduction Number of Re-age/ Other with Other (1) Total September 30, 2019: One- to four-family 23 $ 6 $ — $ 4 $ 10 Home equity 35 2 — — 2 Total 58 $ 8 $ — $ 4 $ 12 September 30, 2018: One- to four-family 46 $ 14 $ — $ 6 $ 20 Home equity 75 4 1 1 6 Total 121 $ 18 $ 1 $ 7 $ 26 (1) Amounts represent loans whose terms were modified in a manner that did not result in an interest rate reduction, including re-aged loans, extensions, and loans with capitalized interest. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) - Fair Value Hedging [Member] | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Fair Value Amounts of Derivatives Designated as Hedging Instruments | The following table presents a summary of the fair value of derivatives as reported in the consolidated balance sheet (dollars in millions): Fair Value Notional Asset (1) Liability Net (2) September 30, 2019: Interest rate contracts: Fair value hedges (3) $ 10,643 $ — $ — $ — Total derivatives designated as hedging instruments (4) $ 10,643 $ — $ — $ — December 31, 2018: Interest rate contracts: Fair value hedges $ 9,763 $ 1 $ — $ 1 Total derivatives designated as hedging instruments (4) $ 9,763 $ 1 $ — $ 1 (1) Reflected in the other assets line item on the consolidated balance sheet. (2) Represents net fair value of derivative instruments for disclosure purposes only. (3) As of September 30, 2019, there are no bilateral derivative contracts. (4) All derivatives were designated as hedging instruments at September 30, 2019 and December 31, 2018 . |
Cumulative Basis Adjustments Fair Value Hedges | The following table presents the cumulative basis adjustments related to the carrying amount of hedged assets in fair value hedging relationships (dollars in millions): Cumulative Amount of Fair Value Hedging Basis Adjustment Included in Carrying Amount of Hedged Assets (2) Carrying Amount of Hedged Assets (1) Total Discontinued September 30, 2019: Available-for-sale securities (3) $ 13,386 $ 891 $ (274 ) December 31, 2018: Available-for-sale securities (3) $ 13,203 $ (10 ) $ (385 ) (1) The carrying amount includes the impact of basis adjustments on active fair value hedges and the impact of basis adjustments from previously discontinued fair value hedges. (2) Represents the increase (decrease) to the carrying amount of hedged assets. The discontinued portion of the cumulative amount of fair value hedging basis adjustments is amortized into net interest income using the effective interest method over the expected remaining life of the hedged items. (3) Includes the amortized cost basis of closed portfolios of prepayable securities designated in hedging relationships in which the hedged item is the last layer of principal expected to be remaining throughout the hedge term. As of September 30, 2019 and December 31, 2018, respectively, the amortized cost basis of this portfolio was $45 million and $810 million , the amount of the designated hedged items was $30 million and $192 million and the cumulative basis adjustments associated with these hedges was $1 million and $6 million . |
Schedule of Effect of Derivatives designated as Fair Value Hedges and Related Hedged Items | The following table presents the effects of fair value hedge accounting on the consolidated statement of income (dollars in millions): Interest Income Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Total interest income $ 521 $ 514 $ 1,636 $ 1,471 Effects of fair value hedging on total interest income (1)(2) Agency debentures: Amounts recognized as interest accruals on derivatives — (1 ) — (4 ) Changes in fair value of hedged items 30 (8 ) 61 (74 ) Changes in fair value of derivatives (29 ) 8 (61 ) 74 Net loss on fair value hedging relationships - agency debentures 1 (1 ) — (4 ) Agency mortgage-backed securities: Amounts recognized as interest accruals on derivatives (3 ) 1 1 (14 ) Amortization of basis adjustments from discontinued hedges 8 7 27 16 Changes in fair value of hedged items 258 (88 ) 946 (416 ) Changes in fair value of derivatives (260 ) 83 (946 ) 403 Net gain (loss) on fair value hedging relationships - agency mortgage-backed securities 3 3 28 (11 ) Total net gain (loss) on fair value hedging relationships $ 4 $ 2 $ 28 $ (15 ) (1) Excludes interest income accruals on hedged items and amounts recognized upon the sale of securities attributable to fair value hedge accounting. (2) Excludes interest on variation margin related to centrally cleared derivative contracts. |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Deposits [Abstract] | |
Deposit Liabilities, Type | The following table presents the significant components of deposits (dollars in millions): September 30, 2019 December 31, 2018 Sweep deposits $ 30,778 $ 39,322 Savings deposits (1) 7,964 4,133 Other deposits (2) 1,640 1,858 Total deposits $ 40,382 $ 45,313 (1) Includes $6.3 billion and $2.0 billion of deposits at September 30, 2019 , and December 31, 2018, respectively, in our Premium Savings Account product. (2) Includes checking deposits, money market deposits and certificates of deposit. As of September 30, 2019 and December 31, 2018 , the Company had $183 million and $193 million in non-interest bearing deposits, respectively. |
Other Borrowings and Corporat_2
Other Borrowings and Corporate Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Other Borrowings | The following table presents the Company's external lines of credit at September 30, 2019 (dollars in millions): Description Maturity Date Borrower Outstanding Available Senior unsecured, committed revolving credit facility (1) June 2024 ETFC $ — $ 300 FHLB secured credit facility Determined at trade ETB $ — $ 7,290 Federal Reserve Bank discount window Overnight ETB $ — $ 1,131 Senior unsecured, committed revolving credit facility (2) June 2020 ETS $ — $ 600 Secured, committed lines of credit June 2020 ETS $ — $ 175 Unsecured, uncommitted lines of credit June 2020 ETS $ — $ 50 Unsecured, uncommitted lines of credit None ETS $ — $ 75 Secured, uncommitted lines of credit None ETS $ — $ 425 (1) On June 21, 2019, the Company entered into a new five year, $300 million senior unsecured committed revolving credit facility, which replaced its three year senior unsecured committed revolving credit facility entered into on June 23, 2017. The senior unsecured committed revolving credit facility contains certain covenants, including maintenance covenants related to the Company's interest coverage, leverage and regulatory net capital ratios with which the Company was in compliance at September 30, 2019 . (2) On June 21, 2019, E*TRADE Securities entered into a 364-day, $600 million senior unsecured committed revolving credit facility, which replaced its 364-day senior unsecured committed revolving credit facility entered into on June 22, 2018. The senior unsecured committed revolving credit facility contains certain covenants, including maintenance covenants related to E*TRADE Securities' minimum consolidated tangible net worth and regulatory net capital ratio with which the Company was in compliance at September 30, 2019 . |
Schedule of Corporate Debt Instruments | The following tables present the significant components of E*TRADE Financial's corporate debt (dollars in millions): Face Value Discount Net September 30, 2019: Interest-bearing notes: 2.95% Senior Notes, due 2022 $ 600 $ (3 ) $ 597 3.80% Senior Notes, due 2027 400 (3 ) 397 4.50% Senior Notes, due 2028 420 (4 ) 416 Total corporate debt $ 1,420 $ (10 ) $ 1,410 December 31, 2018: Interest-bearing notes: 2.95% Senior Notes, due 2022 $ 600 $ (4 ) $ 596 3.80% Senior Notes, due 2027 400 (3 ) 397 4.50% Senior Notes, due 2028 420 (4 ) 416 Total corporate debt $ 1,420 $ (11 ) $ 1,409 |
Lease Arrangements (Tables)
Lease Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lessee, Leases Assets Liabilities and Terms [Table Text Block] | The following table presents balance sheet information related to the Company's classification of ROU assets and operating lease liabilities (dollars in millions): Classification September 30, 2019 Operating lease assets, net Other assets $ 211 Operating lease liabilities Other liabilities $ 243 |
Lease, Cost [Table Text Block] | The following table presents the significant components of lease expense (dollars in millions): Classification Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease cost (1) Occupancy and Equipment $ 10 $ 26 Variable lease cost Occupancy and Equipment — 2 Net lease expense (2) $ 10 $ 28 (1) Includes short-term lease costs which are not material. (2) Net of sublease income which is not material. |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following table presents the maturities of lease liabilities (dollars in millions): Operating Leases Years ending December 31, 2019 (1) $ 8 2020 37 2021 36 2022 32 2023 33 Thereafter 149 Total lease payments 295 Imputed interest (52 ) Present value of lease liabilities $ 243 (1) Excludes maturities during the nine months ended September 30, 2019 . |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Schedule of Accumulated Other Comprehensive Loss | The following table presents after-tax changes in each component of accumulated other comprehensive loss (dollars in millions): 2019 2018 Accumulated other comprehensive loss, beginning of period (1) $ (275 ) $ (26 ) Other comprehensive income (loss) before reclassifications 112 (128 ) Amounts reclassified from accumulated other comprehensive loss (7 ) (7 ) Transfer of held-to-maturity securities to available-for-sale securities (2) — 6 Net change 105 (129 ) Cumulative effect of hedge accounting adoption — (7 ) Reclassification of tax effects due to federal tax reform — (14 ) Balance, March 31, $ (170 ) $ (176 ) Other comprehensive income (loss) before reclassifications 64 (51 ) Amounts reclassified from accumulated other comprehensive loss 48 (8 ) Net change 112 (59 ) Balance, June 30, $ (58 ) $ (235 ) Other comprehensive income (loss) before reclassifications 43 (86 ) Amounts reclassified from accumulated other comprehensive loss (9 ) (8 ) Net change 34 (94 ) Accumulated other comprehensive loss, end of period (1) $ (24 ) $ (329 ) (1) The accumulated other comprehensive loss balances and activities were related to available-for-sale securities in both periods. (2) Securities with a carrying value of $4.7 billion and related unrealized pre-tax gain of $7 million , or $6 million net of tax, were transferred from held-to-maturity securities to available-for-sale securities during the three months ended March 31, 2018, as part of a one-time transition election for early adopting the new derivatives and hedge accounting guidance. |
Components of Other Comprehensive Income (Loss) | The following table presents other comprehensive income (loss) activity and the related tax effect (dollars in millions): Three Months Ended September 30, 2019 2018 Before Tax Tax Effect After Tax Before Tax Tax Effect After Tax Other comprehensive income (loss) Available-for-sale securities: Unrealized gains (losses), net $ 58 $ (15 ) $ 43 $ (112 ) $ 26 $ (86 ) Reclassification into earnings, net (12 ) 3 (9 ) (11 ) 3 (8 ) Net change from available-for-sale securities 46 (12 ) 34 (123 ) 29 (94 ) Other comprehensive income (loss) $ 46 $ (12 ) $ 34 $ (123 ) $ 29 $ (94 ) Nine Months Ended September 30, 2019 2018 Before Tax Tax Effect After Tax Before Tax Tax Effect After Tax Other comprehensive income (loss) Available-for-sale securities: Unrealized gains (losses), net $ 294 $ (75 ) $ 219 $ (353 ) $ 88 $ (265 ) Reclassification into earnings, net 43 (11 ) 32 (32 ) 9 (23 ) Transfer of held-to-maturity securities to available-for-sale securities — — — 7 (1 ) 6 Net change from available-for-sale securities 337 (86 ) 251 (378 ) 96 (282 ) Other comprehensive income (loss) $ 337 $ (86 ) $ 251 $ (378 ) $ 96 $ (282 ) |
Reclassification out of Accumulated Other Comprehensive Loss | The following table presents the consolidated statement of income line items impacted by reclassifications out of accumulated other comprehensive loss (dollars in millions): Accumulated Other Comprehensive Loss Components Amounts Reclassified from Accumulated Other Comprehensive Loss Affected Line Items in the Consolidated Statement of Income Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Available-for-sale securities: $ 13 $ 12 $ (41 ) $ 34 Gains (losses) on securities and other, net (1 ) (1 ) (2 ) (2 ) Interest income 12 11 (43 ) 32 Reclassification into earnings, before tax (3 ) (3 ) 11 (9 ) Income tax benefit (expense) $ 9 $ 8 $ (32 ) $ 23 Reclassification into earnings, net |
Preferred Stock | |
Schedule of Stock by Class | The following table presents the preferred stock outstanding (in millions except total shares outstanding and per share data): Carrying Value at Description Issuance Date Per Annum Dividend Rate Total Shares Outstanding Liquidation Preference per Share September 30, 2019 December 31, 2018 Series A Fixed-to-Floating Rate Non-Cumulative 8/25/2016 5.875% to, but excluding, 9/15/2026; 3-mo LIBOR + 4.435% thereafter 400,000 $ 1,000 $ 394 $ 394 Series B Fixed-to-Floating Rate Non-Cumulative 12/6/2017 5.30% to, but excluding, 3/15/2023; 3-mo LIBOR + 3.16% thereafter 3,000 $ 100,000 295 295 Total 403,000 $ 689 $ 689 |
Dividends Declared and Paid | The following table presents the cash dividend paid on preferred stock (in millions except per share data): Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 Declaration Date Record Date Payment Date Dividend per Share Dividend Paid Declaration Date Record Date Payment Date Dividend per Share Dividend Paid Series A (1) 2/7/2019 2/28/2019 3/15/2019 $ 29.38 $ 12 2/8/2018 2/28/2018 3/15/2018 $ 29.38 $ 12 7/25/2019 8/30/2019 9/16/2019 $ 29.38 12 7/26/2018 8/31/2018 9/17/2018 $ 29.38 12 Series B (1) 2/7/2019 2/28/2019 3/15/2019 $ 2,650.00 8 7/25/2019 8/30/2019 9/16/2019 $ 2,650.00 8 7/26/2018 8/31/2018 9/17/2018 $ 4,107.50 12 Total $ 40 $ 36 (1) Dividends are non-cumulative and payable semi-annually, if declared. |
Common Stock | |
Dividends Declared and Paid | The following table presents the cash dividend paid on common stock (in millions except per share data): Nine Months Ended September 30, 2019 Declaration Date Record Date Payment Date Dividend per Share Dividend Paid 1/23/2019 2/1/2019 2/15/2019 $ 0.14 $ 35 4/16/2019 5/13/2019 5/20/2019 $ 0.14 34 7/17/2019 8/19/2019 8/26/2019 $ 0.14 34 Total $ 103 |
Regulatory Requirements (Tables
Regulatory Requirements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Schedule Of Subsidiary Compliance With Regulatory Capital Requirements | The following table presents a summary of the minimum net capital requirements and excess capital for the Company’s broker-dealer and FCM subsidiaries (dollars in millions): Required Net Capital Net Capital Excess Net Capital September 30, 2019: E*TRADE Securities (1) $ 221 $ 1,348 $ 1,127 E*TRADE Futures 2 27 25 Total (2) $ 223 $ 1,375 $ 1,152 December 31, 2018: E*TRADE Securities $ 209 $ 1,294 $ 1,085 E*TRADE Futures 1 26 25 International broker-dealer — 18 18 Total $ 210 $ 1,338 $ 1,128 (1) E*TRADE Securities paid dividends of $660 million to the parent company during the nine months ended September 30, 2019 . (2) The Company's international broker-dealer de-registered and entered into voluntary liquidation in May 2019. The international broker-dealer was not subject to minimum net capital requirements at September 30, 2019 . |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | E*TRADE Financial, E*TRADE Bank and E*TRADE Savings Bank were categorized as "well capitalized" under the regulatory framework for prompt corrective action for the periods presented in the following table (dollars in millions): September 30, 2019 December 31, 2018 Actual Well Capitalized Minimum Capital Excess Capital Actual Well Capitalized Minimum Capital Excess Capital Amount Ratio Amount Ratio Amount Amount Ratio Amount Ratio Amount E*TRADE Financial (1) Tier 1 leverage $ 4,044 6.9 % $ 2,940 5.0 % $ 1,104 $ 4,097 6.6 % $ 3,101 5.0 % $ 996 Common Equity Tier 1 $ 3,355 31.4 % $ 695 6.5 % $ 2,660 $ 3,408 31.1 % $ 713 6.5 % $ 2,695 Tier 1 risk-based $ 4,044 37.8 % $ 855 8.0 % $ 3,189 $ 4,097 37.3 % $ 877 8.0 % $ 3,220 Total risk-based $ 4,079 38.2 % $ 1,069 10.0 % $ 3,010 $ 4,143 37.8 % $ 1,097 10.0 % $ 3,046 E*TRADE Bank (1)(2) Tier 1 leverage $ 3,404 7.4 % $ 2,292 5.0 % $ 1,112 $ 3,484 7.1 % $ 2,461 5.0 % $ 1,023 Common Equity Tier 1 $ 3,404 37.2 % $ 595 6.5 % $ 2,809 $ 3,484 34.9 % $ 650 6.5 % $ 2,834 Tier 1 risk-based $ 3,404 37.2 % $ 732 8.0 % $ 2,672 $ 3,484 34.9 % $ 800 8.0 % $ 2,684 Total risk-based $ 3,431 37.5 % $ 916 10.0 % $ 2,515 $ 3,521 35.2 % $ 999 10.0 % $ 2,522 E*TRADE Savings Bank (1) Tier 1 leverage $ 1,472 41.9 % $ 176 5.0 % $ 1,296 $ 1,456 26.6 % $ 273 5.0 % $ 1,183 Common Equity Tier 1 $ 1,472 213.0 % $ 45 6.5 % $ 1,427 $ 1,456 169.4 % $ 56 6.5 % $ 1,400 Tier 1 risk-based $ 1,472 213.0 % $ 56 8.0 % $ 1,416 $ 1,456 169.4 % $ 69 8.0 % $ 1,387 Total risk-based $ 1,472 213.0 % $ 69 10.0 % $ 1,403 $ 1,456 169.4 % $ 86 10.0 % $ 1,370 (1) Basel III includes a capital conservation buffer that limits a banking organization’s ability to make capital distributions and discretionary bonus payments to executive officers if a banking organization fails to maintain a Common Equity Tier 1 capital conservation buffer of more than 2.5% , on a fully phased-in basis, of total risk-weighted assets above each of the following minimum risk-based capital ratio requirements: Common Equity Tier 1 capital ( 4.5% ), Tier 1 risk-based capital ( 6.0% ), and Total risk-based capital ( 8.0% ). This requirement was effective beginning on January 1, 2016, and became fully phased-in on January 1, 2019. (2) E*TRADE Bank paid dividends of $535 million to the parent company during the three months ended September 30, 2019. |
Organization, Basis of Presen_3
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Details - Adoption of New Accounting Standards) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease liabilities | $ 243 | |
Operating lease assets | 211 | |
Accounting Standards Update2018-11 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease liabilities | $ 211 | |
Operating lease assets | $ 193 | |
Accounting Standards Update 2016-13 [Member] | Minimum [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect of accounting change | 75 | |
Accounting Standards Update 2016-13 [Member] | Maximum [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect of accounting change | $ 100 |
Net Revenue (Details - Total Re
Net Revenue (Details - Total Revenue) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Oct. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||||
Net interest income | $ 455,000,000 | $ 466,000,000 | $ 1,437,000,000 | $ 1,364,000,000 | |
Gains (losses) on securities and other, net | 16,000,000 | 17,000,000 | (37,000,000) | 42,000,000 | |
Other revenue | 11,000,000 | 12,000,000 | 35,000,000 | 34,000,000 | |
Revenues | 767,000,000 | 720,000,000 | 2,207,000,000 | 2,138,000,000 | |
Options contract [Member] | Subsequent Event [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract rate | $ 0.65 | ||||
Active trader pricing [Member] | Subsequent Event [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract rate | $ 0.50 | ||||
Commissions [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 122,000,000 | 117,000,000 | 365,000,000 | 375,000,000 | |
Fees and service charges [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 163,000,000 | $ 108,000,000 | $ 407,000,000 | $ 323,000,000 |
Net Revenue (Details - Interest
Net Revenue (Details - Interest Income and Interest Expense) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest income: | ||||
Cash and equivalents | $ 2 | $ 2 | $ 8 | $ 7 |
Cash segregated under federal or other regulations | 7 | 4 | 19 | 11 |
Investment securities | 324 | 315 | 1,057 | 908 |
Margin receivables | 120 | 130 | 376 | 351 |
Loans | 25 | 32 | 81 | 98 |
Broker-related receivables and other | 5 | 4 | 12 | 12 |
Subtotal interest income | 483 | 487 | 1,553 | 1,387 |
Other interest revenue(1) | 38 | 27 | 83 | 84 |
Total interest income | 521 | 514 | 1,636 | 1,471 |
Interest expense: | ||||
Sweep deposits | 11 | 14 | 49 | 23 |
Savings deposits | 27 | 2 | 65 | 3 |
Customer payables | 7 | 8 | 24 | 13 |
Broker-related payables and other | 2 | 3 | 4 | 7 |
Other borrowings | 1 | 6 | 7 | 21 |
Corporate debt | 14 | 13 | 42 | 32 |
Subtotal interest expense | 62 | 46 | 191 | 99 |
Other interest expense(2) | 4 | 2 | 8 | 8 |
Total interest expense | 66 | 48 | 199 | 107 |
Net interest income | $ 455 | $ 466 | $ 1,437 | $ 1,364 |
Net Revenue (Details - Fees and
Net Revenue (Details - Fees and Service Charges) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Money market funds and sweep deposits revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 62 | $ 18 | $ 106 | $ 53 |
Order flow revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 46 | 40 | 134 | 130 |
Advisor management and custody fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 19 | 19 | 56 | 46 |
Mutual fund service fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 13 | 13 | 38 | 36 |
Foreign exchange revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 8 | 7 | 24 | 21 |
Reorganization fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 5 | 3 | 18 | 10 |
Other fees and service charges [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 10 | 8 | 31 | 27 |
Fees and service charges [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 163 | $ 108 | $ 407 | $ 323 |
Fair Value Disclosures (Details
Fair Value Disclosures (Details - Inputs) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total mortgage loans receivable | $ 1,768,000,000 | $ 2,132,000,000 |
Real Estate Owned | 13,000,000 | 13,000,000 |
Average [Member] | Level 3 [Member] | Fair Value, Nonrecurring [Member] | Measurement Input, Appraised Value [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real Estate Owned | 387,500 | 329,500 |
Maximum [Member] | Level 3 [Member] | Fair Value, Nonrecurring [Member] | Measurement Input, Appraised Value [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real Estate Owned | 1,050,000 | 900,000 |
Minimum [Member] | Level 3 [Member] | Fair Value, Nonrecurring [Member] | Measurement Input, Appraised Value [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real Estate Owned | 30,000 | 57,900 |
One- To Four-Family [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total mortgage loans receivable | 861,000,000 | 1,071,000,000 |
One- To Four-Family [Member] | Average [Member] | Level 3 [Member] | Fair Value, Nonrecurring [Member] | Measurement Input, Appraised Value [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total mortgage loans receivable | 742,000 | 594,700 |
One- To Four-Family [Member] | Maximum [Member] | Level 3 [Member] | Fair Value, Nonrecurring [Member] | Measurement Input, Appraised Value [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total mortgage loans receivable | 2,700,000 | 2,000,000 |
One- To Four-Family [Member] | Minimum [Member] | Level 3 [Member] | Fair Value, Nonrecurring [Member] | Measurement Input, Appraised Value [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total mortgage loans receivable | 92,000 | 17,000 |
Home Equity [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total mortgage loans receivable | 680,000,000 | 836,000,000 |
Home Equity [Member] | Average [Member] | Level 3 [Member] | Fair Value, Nonrecurring [Member] | Measurement Input, Appraised Value [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total mortgage loans receivable | 405,200 | 397,700 |
Home Equity [Member] | Maximum [Member] | Level 3 [Member] | Fair Value, Nonrecurring [Member] | Measurement Input, Appraised Value [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total mortgage loans receivable | 1,440,000 | 1,060,000 |
Home Equity [Member] | Minimum [Member] | Level 3 [Member] | Fair Value, Nonrecurring [Member] | Measurement Input, Appraised Value [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total mortgage loans receivable | $ 115,000 | $ 73,000 |
Fair Value Disclosures (Detai_2
Fair Value Disclosures (Details - Recurring and Nonrecurring) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, fair value | $ 21,020,000 | $ 23,153,000 |
Assets measured at fair value on recurring basis percentage of total assets | 34.00% | 36.00% |
Fair Value, Transfers Between Level 1 and Level 2 and Level 3, Description and Policy (Textuals) [Abstract] | ||
Fair value, assets, Level 1 to Level 2 transfers, amount | $ 0 | $ 0 |
Fair value, assets, Level 2 to Level 1 transfers, amount | 0 | 0 |
Fair value, liabilities, Level 1 to Level 2 transfers, amount | 0 | 0 |
Fair value, liabilities, Level 2 to Level 1 transfers, amount | 0 | 0 |
Asset transfer into Level 3 | 0 | 0 |
Asset transfer out of Level 3 | 0 | 0 |
Liability transfer into Level 3 | 0 | 0 |
Liability transfer out of Level 3 | 0 | 0 |
Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, fair value | 21,020,000 | 23,153,000 |
Publicly traded equity securities | 7,000 | 7,000 |
Derivative assets | 1,000 | |
Total assets measured at fair value | 21,027,000 | 23,161,000 |
Fair Value, Nonrecurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total loans receivable | 17,000 | 23,000 |
Real estate owned | 12,000 | 10,000 |
Total assets measured at fair value | 29,000 | 33,000 |
Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Publicly traded equity securities | 7,000 | 7,000 |
Total assets measured at fair value | 7,000 | 7,000 |
Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, fair value | 21,020,000 | 23,153,000 |
Derivative assets | 1,000 | |
Total assets measured at fair value | 21,020,000 | 23,154,000 |
Level 3 [Member] | Fair Value, Nonrecurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total loans receivable | 17,000 | 23,000 |
Real estate owned | 12,000 | 10,000 |
Total assets measured at fair value | 29,000 | 33,000 |
One- To Four-Family [Member] | Loans Receivable [Member] | Fair Value, Nonrecurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total loans receivable | 13,000 | 17,000 |
One- To Four-Family [Member] | Loans Receivable [Member] | Level 3 [Member] | Fair Value, Nonrecurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total loans receivable | 13,000 | 17,000 |
Home Equity [Member] | Loans Receivable [Member] | Fair Value, Nonrecurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total loans receivable | 4,000 | 6,000 |
Home Equity [Member] | Loans Receivable [Member] | Level 3 [Member] | Fair Value, Nonrecurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total loans receivable | 4,000 | 6,000 |
Agency mortgage-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, fair value | 18,514,000 | 22,162,000 |
Agency mortgage-backed securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, fair value | 18,514,000 | 22,162,000 |
Agency mortgage-backed securities [Member] | Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, fair value | 18,514,000 | 22,162,000 |
Agency debentures [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, fair value | 673,000 | 839,000 |
Agency debentures [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, fair value | 673,000 | 839,000 |
Agency debentures [Member] | Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, fair value | 673,000 | 839,000 |
US Treasuries [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, fair value | 1,349,000 | |
US Treasuries [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, fair value | 1,349,000 | |
US Treasuries [Member] | Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, fair value | 1,349,000 | |
Non-agency asset-backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, fair value | 369,000 | |
Non-agency asset-backed securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, fair value | 369,000 | |
Non-agency asset-backed securities [Member] | Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, fair value | 369,000 | |
Other agency debt securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, fair value | 139,000 | |
Other agency debt securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, fair value | 139,000 | |
Other agency debt securities [Member] | Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, fair value | 139,000 | |
Municipal bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, fair value | 12,000 | |
Municipal bonds [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, fair value | 12,000 | |
Municipal bonds [Member] | Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, fair value | 12,000 | |
Non-agency mortgage backed securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, fair value | 114,000 | |
Non-agency mortgage backed securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, fair value | 114,000 | |
Non-agency mortgage backed securities [Member] | Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, fair value | 114,000 | |
Other [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, fair value | 1,000 | 1,000 |
Other [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, fair value | 1,000 | 1,000 |
Other [Member] | Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, fair value | $ 1,000 | $ 1,000 |
Fair Value Disclosures (Detai_3
Fair Value Disclosures (Details - Level 3) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Level 3 recurring assets | $ 0 | $ 0 |
Level 3 recurring liabilities | $ 0 | $ 0 |
Fair Value Disclosures (Detai_4
Fair Value Disclosures (Details - FV of Financial Instruments) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Cash and equivalents | $ 493 | $ 2,333 | $ 596 | |||
Cash segregated under federal or other regulations | 1,365 | 1,011 | 856 | |||
Total held-to-maturity securities | 21,542 | 21,884 | ||||
Margin receivables | 9,859 | 9,560 | ||||
Total loans receivable, net | 1,747 | 2,103 | ||||
Receivables from brokers, dealers and clearing organizations | 1,038 | 760 | ||||
Deposits | 40,382 | 45,313 | ||||
Customer payables | 11,183 | 10,117 | ||||
Payables to brokers, dealers and clearing organizations | 1,091 | 948 | ||||
Corporate debt | 1,410 | 1,409 | ||||
Disclosure Endnotes [Abstract] | ||||||
Customer Securities for which Entity has Right to Sell or Repledge, Fair Value | 14,000 | 12,900 | ||||
Customer Securities for which Entity has Right to Sell or Repledge, Fair Value of Securities Sold or Repledged | 2,300 | 2,300 | ||||
Allowance for loan losses | 27 | $ 30 | 37 | 41 | $ 54 | $ 74 |
Securities purchased under agreement to resell | 250 | |||||
Securities borrowed | 728 | 176 | ||||
Securities purchased under agreement to resell, fair value of collateral | 258 | |||||
Carrying Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Cash and equivalents | 493 | 2,333 | ||||
Cash segregated under federal or other regulations | 1,365 | 1,011 | ||||
Total held-to-maturity securities | 21,542 | 21,884 | ||||
Margin receivables | 9,859 | 9,560 | ||||
Total loans receivable, net | 1,747 | 2,103 | ||||
Receivables from brokers, dealers and clearing organizations | 1,038 | 760 | ||||
Other assets | 357 | 36 | ||||
Deposits | 40,382 | 45,313 | ||||
Customer payables | 11,183 | 10,117 | ||||
Payables to brokers, dealers and clearing organizations | 1,091 | 948 | ||||
Corporate debt | 1,410 | 1,409 | ||||
Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Cash and equivalents | 493 | 2,333 | ||||
Cash segregated under federal or other regulations | 1,365 | 1,011 | ||||
Total held-to-maturity securities | 21,912 | 21,491 | ||||
Margin receivables | 9,859 | 9,560 | ||||
Total loans receivable, net | 1,823 | 2,146 | ||||
Receivables from brokers, dealers and clearing organizations | 1,038 | 760 | ||||
Other assets | 357 | 36 | ||||
Deposits | 40,382 | 45,313 | ||||
Customer payables | 11,183 | 10,117 | ||||
Payables to brokers, dealers and clearing organizations | 1,091 | 948 | ||||
Corporate debt | 1,484 | 1,372 | ||||
One- To Four-Family [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total loans receivable, net | 860 | 1,069 | ||||
Disclosure Endnotes [Abstract] | ||||||
Allowance for loan losses | 6 | 9 | 9 | 12 | 16 | 24 |
One- To Four-Family [Member] | Carrying Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total loans receivable, net | 860 | 1,069 | ||||
One- To Four-Family [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total loans receivable, net | 897 | 1,099 | ||||
Home Equity [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total loans receivable, net | 661 | 810 | ||||
Disclosure Endnotes [Abstract] | ||||||
Allowance for loan losses | 19 | 19 | 26 | 27 | 36 | 46 |
Home Equity [Member] | Carrying Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total loans receivable, net | 661 | 810 | ||||
Home Equity [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total loans receivable, net | 701 | 825 | ||||
Consumer and other [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total loans receivable, net | 84 | 117 | ||||
Disclosure Endnotes [Abstract] | ||||||
Allowance for loan losses | 2 | $ 2 | 2 | $ 2 | $ 2 | $ 4 |
Consumer and other [Member] | Carrying Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total loans receivable, net | 84 | 117 | ||||
Consumer and other [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total loans receivable, net | 83 | 115 | ||||
Securities-based lending [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total loans receivable, net | 142 | 107 | ||||
Disclosure Endnotes [Abstract] | ||||||
Allowance for loan losses | 0 | 0 | ||||
Securities-based lending [Member] | Carrying Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total loans receivable, net | 142 | 107 | ||||
Securities-based lending [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total loans receivable, net | 142 | 107 | ||||
Fully paid lending program [Member] | ||||||
Disclosure Endnotes [Abstract] | ||||||
Securities borrowed | 107 | 36 | ||||
Agency mortgage-backed securities [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total held-to-maturity securities | 19,563 | 18,085 | ||||
Agency mortgage-backed securities [Member] | Carrying Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total held-to-maturity securities | 19,563 | 18,085 | ||||
Agency mortgage-backed securities [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total held-to-maturity securities | 19,880 | 17,748 | ||||
Agency debentures [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total held-to-maturity securities | 327 | 1,824 | ||||
Agency debentures [Member] | Carrying Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total held-to-maturity securities | 327 | 1,824 | ||||
Agency debentures [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total held-to-maturity securities | 333 | 1,808 | ||||
Other agency debt securities [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total held-to-maturity securities | 1,652 | 1,975 | ||||
Other agency debt securities [Member] | Carrying Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total held-to-maturity securities | 1,652 | 1,975 | ||||
Other agency debt securities [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total held-to-maturity securities | 1,699 | 1,935 | ||||
Level 1 [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Cash and equivalents | 493 | 2,333 | ||||
Cash segregated under federal or other regulations | 1,365 | 1,011 | ||||
Level 2 [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total held-to-maturity securities | 21,912 | 21,491 | ||||
Margin receivables | 9,859 | 9,560 | ||||
Total loans receivable, net | 142 | 107 | ||||
Receivables from brokers, dealers and clearing organizations | 1,038 | 760 | ||||
Other assets | 357 | 36 | ||||
Deposits | 40,382 | 45,313 | ||||
Customer payables | 11,183 | 10,117 | ||||
Payables to brokers, dealers and clearing organizations | 1,091 | 948 | ||||
Corporate debt | 1,484 | 1,372 | ||||
Level 2 [Member] | Securities-based lending [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total loans receivable, net | 142 | 107 | ||||
Level 2 [Member] | Agency mortgage-backed securities [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total held-to-maturity securities | 19,880 | 17,748 | ||||
Level 2 [Member] | Agency debentures [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total held-to-maturity securities | 333 | 1,808 | ||||
Level 2 [Member] | Other agency debt securities [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total held-to-maturity securities | 1,699 | 1,935 | ||||
Level 3 [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total loans receivable, net | 1,681 | 2,039 | ||||
Level 3 [Member] | One- To Four-Family [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total loans receivable, net | 897 | 1,099 | ||||
Level 3 [Member] | Home Equity [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total loans receivable, net | 701 | 825 | ||||
Level 3 [Member] | Consumer and other [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total loans receivable, net | $ 83 | $ 115 |
Offsetting Assets and Liabili_3
Offsetting Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Offsetting Assets [Abstract] | ||
Securities Purchased under Agreements to Resell, Gross | $ 250 | |
Securities Purchased under Agreements to Resell, Liability | 0 | |
Securities Purchased under Agreements to Resell | 250 | |
Securities Purchased under Agreements to Resell, Financial Instruments, Not Offset | 0 | |
Securities Purchased under Agreements to Resell, Collateral Received, Not Offset | (250) | |
Securities Purchased under Agreements to Resell, Amount Offset Against Collateral | 0 | |
Securities Borrowed, Gross | 728 | $ 176 |
Securities Borrowed, Liability | 0 | 0 |
Securities Borrowed | 728 | 176 |
Securities Borrowed, Financial Instruments, Not Offset | (76) | (104) |
Securities Borrowed, Collateral Received, Not Offset | (629) | (61) |
Securities Borrowed, Net | 23 | 11 |
Total, Gross | 978 | |
Total, Liability | 0 | |
Total | 978 | |
Total, Financial Instruments, Not Offset | (76) | |
Total, Collateral Received, Not Offset | (879) | |
Total, Net | 23 | |
Offsetting Liabilities [Abstract] | ||
Securities Loaned, Gross | 1,028 | 887 |
Securities Loaned, Asset | 0 | 0 |
Securities Loaned | 1,028 | 887 |
Securities Loaned, Financial Instruments, Not Offset | (76) | (104) |
Securities Loaned, Collateral Pledged, Not Offset | (862) | (700) |
Securities Loaned, Net | 90 | 83 |
Offsetting Assets [Line Items] | ||
Securities Purchased under Agreements to Resell, Fair Value of Collateral | 258 | |
Exchange Cleared [Member] | ||
Offsetting Assets [Line Items] | ||
Cash Collateral Paid for Securities Borrowed, at Carrying Value | 501 | 65 |
Cash Collateral Received for Securities Loaned, at Carrying Value | $ 593 | $ 543 |
Available-for-Sale Securities (
Available-for-Sale Securities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | $ 19,867 | $ 23,126 |
Available-for-sale debt securities, accumulated gross unrealized gain, before tax | 1,210 | 341 |
Available-for-sale debt securities, accumulated gross unrealized loss, before tax | (57) | (314) |
Available-for-sale debt securities, fair value | $ 21,020 | 23,153 |
Credit card receivable [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Percentage of asset backed securities collateral | 61.00% | |
Auto loan receivable [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Percentage of asset backed securities collateral | 21.00% | |
Student loan receivable [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Percentage of asset backed securities collateral | 18.00% | |
Agency mortgage-backed securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | $ 17,464 | 22,140 |
Available-for-sale debt securities, accumulated gross unrealized gain, before tax | 1,095 | 327 |
Available-for-sale debt securities, accumulated gross unrealized loss, before tax | (45) | (305) |
Available-for-sale debt securities, fair value | 18,514 | 22,162 |
Agency debentures [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 639 | 833 |
Available-for-sale debt securities, accumulated gross unrealized gain, before tax | 34 | 13 |
Available-for-sale debt securities, accumulated gross unrealized loss, before tax | 0 | (7) |
Available-for-sale debt securities, fair value | 673 | 839 |
US Treasuries [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 1,287 | |
Available-for-sale debt securities, accumulated gross unrealized gain, before tax | 73 | |
Available-for-sale debt securities, accumulated gross unrealized loss, before tax | (11) | |
Available-for-sale debt securities, fair value | 1,349 | |
Non-agency asset-backed securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 368 | |
Available-for-sale debt securities, accumulated gross unrealized gain, before tax | 2 | |
Available-for-sale debt securities, accumulated gross unrealized loss, before tax | (1) | |
Available-for-sale debt securities, fair value | 369 | |
Other agency debt securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 140 | |
Available-for-sale debt securities, accumulated gross unrealized gain, before tax | 1 | |
Available-for-sale debt securities, accumulated gross unrealized loss, before tax | (2) | |
Available-for-sale debt securities, fair value | 139 | |
Non-agency mortgage backed securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 108 | |
Available-for-sale debt securities, accumulated gross unrealized gain, before tax | 6 | |
Available-for-sale debt securities, accumulated gross unrealized loss, before tax | 0 | |
Available-for-sale debt securities, fair value | 114 | |
Municipal bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 12 | |
Available-for-sale debt securities, accumulated gross unrealized gain, before tax | 0 | |
Available-for-sale debt securities, accumulated gross unrealized loss, before tax | 0 | |
Available-for-sale debt securities, fair value | 12 | |
Other [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 1 | 1 |
Available-for-sale debt securities, accumulated gross unrealized gain, before tax | 0 | 0 |
Available-for-sale debt securities, accumulated gross unrealized loss, before tax | 0 | 0 |
Available-for-sale debt securities, fair value | $ 1 | $ 1 |
Held-to-Maturity Securities (De
Held-to-Maturity Securities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, amortized cost | $ 21,542 | $ 21,884 |
Held-to-maturity securities, gross unrecognized gains | 413 | 30 |
Held-to-maturity securities, gross unrecognized losses | (43) | (423) |
Held-to-maturity securities, fair value | 21,912 | 21,491 |
Agency mortgage-backed securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, amortized cost | 19,563 | 18,085 |
Held-to-maturity securities, gross unrecognized gains | 359 | 26 |
Held-to-maturity securities, gross unrecognized losses | (42) | (363) |
Held-to-maturity securities, fair value | 19,880 | 17,748 |
Agency debentures [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, amortized cost | 327 | 1,824 |
Held-to-maturity securities, gross unrecognized gains | 6 | 0 |
Held-to-maturity securities, gross unrecognized losses | 0 | (16) |
Held-to-maturity securities, fair value | 333 | 1,808 |
Other agency debt securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, amortized cost | 1,652 | 1,975 |
Held-to-maturity securities, gross unrecognized gains | 48 | 4 |
Held-to-maturity securities, gross unrecognized losses | (1) | (44) |
Held-to-maturity securities, fair value | $ 1,699 | $ 1,935 |
Available-for-Sale and Held-t_3
Available-for-Sale and Held-to-Maturity Securities (Details - Maturity) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Available-for-Sale Securities, Debt Maturities [Abstract] | ||
Available-for-sale securities, due within one year, amortized cost | $ 103 | |
Available-for-sale securities, due within one to five years, amortized cost | 311 | |
Available-for-sale securities, due within five to ten years, amortized cost | 9,464 | |
Available-for-sale securities, due after ten years, amortized cost | 9,989 | |
Available-for-sale debt securities, amortized cost basis | 19,867 | $ 23,126 |
Available-for-sale securities, due within one year, fair value | 103 | |
Available-for-sale securities, due within one to five years, fair value | 314 | |
Available-for-sale securities, due within five to ten years, fair value | 10,391 | |
Available-for-sale securities, due after ten years, fair value | 10,212 | |
Available-for-sale securities, fair value | 21,020 | 23,153 |
Held-to-Maturity Securities, Debt Maturities [Abstract] | ||
Held-to-maturity securities, due within one year, amortized cost | 23 | |
Held-to-maturity securities, due within one to five years, amortized cost | 2,094 | |
Held-to-maturity securities, due within five to ten years, amortized cost | 3,137 | |
Held-to-maturity securities, due after ten years, amortized cost | 16,288 | |
Held-to-maturity securities, amortized cost | 21,542 | 21,884 |
Held-to-maturity securities, due within one year, fair value | 23 | |
Held-to-maturity securities, due within one to five years, fair value | 2,133 | |
Held-to-maturity securities, due within five to ten years, fair value | 3,236 | |
Held-to-maturity securities, due after ten years, fair value | 16,520 | |
Held-to-maturity securities, fair value | 21,912 | 21,491 |
Collateral Pledged [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Held-to-maturity debt securities pledged as collateral | 7,400 | 6,300 |
Available-for-sale debt securities pledged as collateral | $ 520 | $ 151 |
Available-for-Sale and Held-t_4
Available-for-Sale and Held-to-Maturity Securities (Details - OTTI) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 1,475 | $ 3,329 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 3,118 | 7,981 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 4,593 | 11,310 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (16) | (35) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (41) | (279) |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | (57) | (314) |
Schedule of Held-to-maturity Securities [Line Items] | ||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 403 | 3,675 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 4,344 | 13,740 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 4,747 | 17,415 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (3) | (34) |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (40) | (389) |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | (43) | (423) |
Agency mortgage-backed securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 843 | 2,945 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 3,118 | 7,826 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 3,961 | 10,771 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (4) | (34) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (41) | (271) |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | (45) | (305) |
Schedule of Held-to-maturity Securities [Line Items] | ||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 403 | 2,802 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 4,166 | 11,587 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 4,569 | 14,389 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (3) | (31) |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (39) | (332) |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | (42) | (363) |
Agency debentures [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 383 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 116 | |
Debt Securities, Available-for-sale, Unrealized Loss Position | 499 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (1) | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (6) | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | (7) | |
Schedule of Held-to-maturity Securities [Line Items] | ||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 0 | 776 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 35 | 666 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 35 | 1,442 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | (2) |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | (14) |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | 0 | (16) |
US Treasuries [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 429 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 0 | |
Debt Securities, Available-for-sale, Unrealized Loss Position | 429 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (11) | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | (11) | |
Non-agency asset-backed securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 203 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 0 | |
Debt Securities, Available-for-sale, Unrealized Loss Position | 203 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (1) | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | (1) | |
Other agency debt securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 0 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 30 | |
Debt Securities, Available-for-sale, Unrealized Loss Position | 30 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (2) | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | (2) | |
Schedule of Held-to-maturity Securities [Line Items] | ||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 0 | 97 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 143 | 1,487 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 143 | 1,584 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | (1) |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1) | (43) |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | $ (1) | (44) |
Municipal bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 0 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 9 | |
Debt Securities, Available-for-sale, Unrealized Loss Position | 9 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 0 | |
Other [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 1 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 0 | |
Debt Securities, Available-for-sale, Unrealized Loss Position | 1 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | $ 0 |
Available-for-Sale and Held-t_5
Available-for-Sale and Held-to-Maturity Securities (Details - Other) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |||||
Net impairment | $ 0 | $ 0 | |||
Components of gains (losses) on securities and other, net | |||||
Debt Securities, Available-for-sale, Realized Gain | $ 14 | $ 65 | 40 | 87 | |
Debt Securities, Available-for-sale, Realized Loss | 0 | (54) | (80) | (54) | |
Debt Securities, Available-for-sale, Realized Gain (Loss) | 14 | 11 | (40) | 33 | |
Equity method investment income and other(3) | 2 | 6 | 3 | 9 | |
Gains (losses) on securities and other, net | $ 16 | 17 | $ (37) | 42 | |
Investment securities, amount sold | $ 4,500 | ||||
Deposits transferred to third-party banks | $ 6,600 | ||||
Equity method investment, realized gain on disposal | $ 5 | $ 5 |
Loans Receivable, Net (Details
Loans Receivable, Net (Details - Aging) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Past Due [Line Items] | ||||||
Loans receivable, Current | $ 1,635 | $ 1,956 | ||||
Total mortgage loans receivable | 1,768 | 2,132 | ||||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | 6 | 8 | ||||
Loans and Leases Receivable, Allowance | (27) | $ (30) | (37) | $ (41) | $ (54) | $ (74) |
Total loans receivable, net | 1,747 | 2,103 | ||||
Loans Receivable, Net [Abstract] | ||||||
Loans Pledged Federal Home Loan Bank | 1,300 | 1,600 | ||||
Loans Pledged Federal Reserve Bank | 100 | 100 | ||||
Financing Receivables, 30 To 89 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Financing Receivable, Past Due | 60 | 74 | ||||
Financing Receivables, 90 To 179 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Financing Receivable, Past Due | 17 | 22 | ||||
Financing Receivables, Equal to Greater than 180 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Financing Receivable, Past Due | 56 | 80 | ||||
E TRADE Line of Credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Unused Commitments to Extend Credit | 310 | 173 | ||||
One- To Four-Family [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Loans receivable, Current | 777 | 958 | ||||
Total mortgage loans receivable | 861 | 1,071 | ||||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | 5 | 7 | ||||
Loans and Leases Receivable, Allowance | (6) | (9) | (9) | (12) | (16) | (24) |
Total loans receivable, net | 860 | 1,069 | ||||
One- To Four-Family [Member] | Financing Receivables, 30 To 89 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Financing Receivable, Past Due | 37 | 48 | ||||
One- To Four-Family [Member] | Financing Receivables, 90 To 179 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Financing Receivable, Past Due | 8 | 9 | ||||
One- To Four-Family [Member] | Financing Receivables, Equal to Greater than 180 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Financing Receivable, Past Due | 39 | 56 | ||||
Home Equity [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Loans receivable, Current | 633 | 774 | ||||
Total mortgage loans receivable | 680 | 836 | ||||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | 0 | 0 | ||||
Loans and Leases Receivable, Allowance | (19) | (19) | (26) | (27) | (36) | (46) |
Total loans receivable, net | 661 | 810 | ||||
Home Equity [Member] | Financing Receivables, 30 To 89 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Financing Receivable, Past Due | 21 | 25 | ||||
Home Equity [Member] | Financing Receivables, 90 To 179 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Financing Receivable, Past Due | 9 | 13 | ||||
Home Equity [Member] | Financing Receivables, Equal to Greater than 180 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Financing Receivable, Past Due | 17 | 24 | ||||
Consumer and other [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Loans receivable, Current | 83 | 117 | ||||
Total mortgage loans receivable | 85 | 118 | ||||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | 1 | 1 | ||||
Loans and Leases Receivable, Allowance | (2) | $ (2) | (2) | $ (2) | $ (2) | $ (4) |
Total loans receivable, net | 84 | 117 | ||||
Consumer and other [Member] | Financing Receivables, 30 To 89 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Financing Receivable, Past Due | 2 | 1 | ||||
Consumer and other [Member] | Financing Receivables, 90 To 179 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Financing Receivable, Past Due | 0 | 0 | ||||
Consumer and other [Member] | Financing Receivables, Equal to Greater than 180 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Financing Receivable, Past Due | 0 | 0 | ||||
Securities-based lending [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Loans receivable, Current | 142 | 107 | ||||
Total mortgage loans receivable | 142 | 107 | ||||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | 0 | 0 | ||||
Loans and Leases Receivable, Allowance | 0 | 0 | ||||
Total loans receivable, net | 142 | 107 | ||||
Securities-based lending [Member] | Financing Receivables, 30 To 89 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Financing Receivable, Past Due | 0 | 0 | ||||
Securities-based lending [Member] | Financing Receivables, 90 To 179 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Financing Receivable, Past Due | 0 | 0 | ||||
Securities-based lending [Member] | Financing Receivables, Equal to Greater than 180 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Financing Receivable, Past Due | $ 0 | $ 0 |
Loans Receivable, Net (Detail_2
Loans Receivable, Net (Details - Credit Quality) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | $ 1,768 | $ 2,132 |
Average Age, Financing Receivable | 13 years 6 months | 12 years 9 months 18 days |
Greater Than 10% of Loans States Other than California and New York, Count | 0 | 0 |
Greater Than 10% of Past Due Loans, States Other than California and New York, Count | 0 | |
Greater Than 10% of Impaired Loans, States Other than California and New York, Count | 0 | |
One- To Four-Family [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | $ 861 | $ 1,071 |
Average estimated current LTV/CLTV | 62.00% | 66.00% |
Average LTV/CLTV at loan origination | 70.00% | 70.00% |
One- To Four-Family [Member] | FICO Score, Greater than 720 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | $ 498 | $ 617 |
One- To Four-Family [Member] | FICO Score, 719 to 700 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 68 | 89 |
One- To Four-Family [Member] | FICO Score, 699 to 680 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 66 | 80 |
One- To Four-Family [Member] | FICO Score, 679 to 660 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 45 | 66 |
One- To Four-Family [Member] | FICO Score, 659 to 620 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 69 | 79 |
One- To Four-Family [Member] | FICO Score, Less than 620 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 115 | 140 |
One- To Four-Family [Member] | Debt-to-Value Ratio, Less than 80 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 706 | 823 |
One- To Four-Family [Member] | Debt-to-Value Ratio, 80 to 100 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 102 | 165 |
One- To Four-Family [Member] | LTV 100 to 120 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 31 | 45 |
One- To Four-Family [Member] | LTV Greater than 120 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 22 | 38 |
Home Equity [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | $ 680 | $ 836 |
Average estimated current LTV/CLTV | 77.00% | 80.00% |
Average LTV/CLTV at loan origination | 82.00% | 82.00% |
Home Equity [Member] | FICO Score, Greater than 720 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | $ 357 | $ 442 |
Home Equity [Member] | FICO Score, 719 to 700 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 63 | 78 |
Home Equity [Member] | FICO Score, 699 to 680 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 58 | 70 |
Home Equity [Member] | FICO Score, 679 to 660 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 48 | 56 |
Home Equity [Member] | FICO Score, 659 to 620 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 62 | 80 |
Home Equity [Member] | FICO Score, Less than 620 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 92 | 110 |
Home Equity [Member] | Debt-to-Value Ratio, Less than 80 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 393 | 454 |
Home Equity [Member] | Debt-to-Value Ratio, 80 to 100 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 169 | 215 |
Home Equity [Member] | LTV 100 to 120 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 77 | 110 |
Home Equity [Member] | LTV Greater than 120 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 41 | 57 |
Consumer and other [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | $ 85 | $ 118 |
One- To Four-Family and Home Equity Benchmark [Member] | Financing Receivables, State, Risk [Member] | CALIFORNIA | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 32.00% | 33.00% |
One- To Four-Family and Home Equity Benchmark [Member] | Financing Receivables, State, Risk [Member] | NEW YORK | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 10.00% | 10.00% |
Home Equity Line of Credit Benchmark [Member] | Interest only, Already Amortizing | Maximum [Member] | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 100.00% | |
One- To Four-Family Benchmark [Member] | Interest only, Already Amortizing | Maximum [Member] | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 100.00% | |
Past due mortgage loans [Member] | Financing Receivables, State, Risk [Member] | CALIFORNIA | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 23.00% | |
Past due mortgage loans [Member] | Financing Receivables, State, Risk [Member] | NEW YORK | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 22.00% | |
Impaired mortgage loans [Member] | Financing Receivables, State, Risk [Member] | CALIFORNIA | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 42.00% | |
Impaired mortgage loans [Member] | Financing Receivables, State, Risk [Member] | NEW YORK | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 10.00% |
Loans Receivable, Net (Detail_3
Loans Receivable, Net (Details - Nonperforming Loans) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Other Real Estate, Foreclosed Assets, and Repossessed Assets [Abstract] | ||
Real Estate Acquired Through Foreclosure | $ 13 | $ 13 |
Mortgage Loans in Process of Foreclosure, Amount | 33 | 51 |
Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Nonaccrual | 176 | 210 |
Nonperforming Financial Instruments [Member] | One- To Four-Family [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Nonaccrual | 118 | 139 |
Nonperforming Financial Instruments [Member] | Home Equity [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Nonaccrual | $ 58 | $ 71 |
Loans Receivable, Net (Detail_4
Loans Receivable, Net (Details - Allowance Qualitative and Quantitative Components) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Quantitative component | $ 6 | $ 12 | ||||
Qualitative component | (1) | 1 | ||||
Specific valuation allowance | 22 | 24 | ||||
Total allowance for loan losses | $ 27 | $ 30 | $ 37 | $ 41 | $ 54 | $ 74 |
Allowance as a % of loans receivable(2) | 1.50% | 1.70% | ||||
One- To Four-Family [Member] | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Quantitative component | $ 1 | $ 4 | ||||
Qualitative component | 0 | 0 | ||||
Specific valuation allowance | 5 | 5 | ||||
Total allowance for loan losses | $ 6 | 9 | $ 9 | 12 | 16 | 24 |
Allowance as a % of loans receivable(2) | 0.70% | 0.80% | ||||
Home Equity [Member] | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Quantitative component | $ 3 | $ 6 | ||||
Qualitative component | (1) | 1 | ||||
Specific valuation allowance | 17 | 19 | ||||
Total allowance for loan losses | $ 19 | 19 | $ 26 | 27 | 36 | 46 |
Allowance as a % of loans receivable(2) | 2.80% | 3.10% | ||||
Consumer and other [Member] | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Quantitative component | $ 2 | $ 2 | ||||
Qualitative component | 0 | 0 | ||||
Specific valuation allowance | 0 | 0 | ||||
Total allowance for loan losses | $ 2 | $ 2 | $ 2 | $ 2 | $ 2 | $ 4 |
Allowance as a % of loans receivable(2) | 1.60% | 1.00% |
Loans Receivable, Net (Detail_5
Loans Receivable, Net (Details - Allowance) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Losses, Additional Information [Line Items] | |||||
Allowance for loan losses, beginning of period | $ 30 | $ 54 | $ 37 | $ 74 | |
Provision (benefit) for loan losses | (12) | (34) | (32) | (74) | |
Charge-offs | 0 | (1) | (2) | (4) | |
Recoveries | 9 | 22 | 24 | 45 | |
Net (charge-offs) recoveries | 9 | 21 | 22 | 41 | |
Allowance for loan losses, end of period | 27 | 41 | 27 | 41 | |
Recovery from the sale of previously charged-off loans | 10 | 15 | |||
Provision (benefit) for loan losses | $ (12) | (34) | $ (32) | (74) | |
Allowance as a percentage of total loans receivable | 1.50% | 1.50% | 1.70% | ||
One- To Four-Family [Member] | |||||
Financing Receivable, Allowance for Credit Losses, Additional Information [Line Items] | |||||
Allowance for loan losses, beginning of period | $ 9 | 16 | $ 9 | 24 | |
Provision (benefit) for loan losses | (5) | (6) | (8) | (17) | |
Charge-offs | 0 | 0 | 0 | (1) | |
Recoveries | 2 | 2 | 5 | 6 | |
Net (charge-offs) recoveries | 2 | 2 | 5 | 5 | |
Allowance for loan losses, end of period | 6 | 12 | 6 | 12 | |
Provision (benefit) for loan losses | $ (5) | (6) | $ (8) | (17) | |
Allowance as a percentage of total loans receivable | 0.70% | 0.70% | 0.80% | ||
Home Equity [Member] | |||||
Financing Receivable, Allowance for Credit Losses, Additional Information [Line Items] | |||||
Allowance for loan losses, beginning of period | $ 19 | 36 | $ 26 | 46 | |
Provision (benefit) for loan losses | (6) | (28) | (24) | (56) | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 6 | 19 | 17 | 37 | |
Net (charge-offs) recoveries | 6 | 19 | 17 | 37 | |
Allowance for loan losses, end of period | 19 | 27 | 19 | 27 | |
Provision (benefit) for loan losses | $ (6) | (28) | $ (24) | (56) | |
Allowance as a percentage of total loans receivable | 2.80% | 2.80% | 3.10% | ||
Consumer and other [Member] | |||||
Financing Receivable, Allowance for Credit Losses, Additional Information [Line Items] | |||||
Allowance for loan losses, beginning of period | $ 2 | 2 | $ 2 | 4 | |
Provision (benefit) for loan losses | (1) | 0 | 0 | (1) | |
Charge-offs | 0 | (1) | (2) | (3) | |
Recoveries | 1 | 1 | 2 | 2 | |
Net (charge-offs) recoveries | 1 | 0 | 0 | (1) | |
Allowance for loan losses, end of period | 2 | 2 | 2 | 2 | |
Provision (benefit) for loan losses | $ (1) | $ 0 | $ 0 | $ (1) | |
Allowance as a percentage of total loans receivable | 1.60% | 1.60% | 1.00% | ||
Held-for-investment [Member] | |||||
Financing Receivable, Allowance for Credit Losses, Additional Information [Line Items] | |||||
Increase (Decrease) in Finance Receivables | $ (400) |
Loans Receivable, Net (Detail_6
Loans Receivable, Net (Details - Allowance Evaluation for Impairment) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Losses, Additional Information [Line Items] | ||||||
Loans collectively evaluated for impairment, recorded investment | $ 1,483 | $ 1,815 | ||||
Loans individually evaluated for impairment, recorded investment | 291 | 325 | ||||
Total recorded investment in loans receivable | 1,774 | 2,140 | ||||
Loans collectively evaluated for impairment, allowance for loan losses | 5 | 13 | ||||
Loans individually evaluated for impairment, allowance for loan losses | 22 | 24 | ||||
Allowance for loan losses | 27 | $ 30 | 37 | $ 41 | $ 54 | $ 74 |
One- To Four-Family [Member] | ||||||
Financing Receivable, Allowance for Credit Losses, Additional Information [Line Items] | ||||||
Loans collectively evaluated for impairment, recorded investment | 694 | 891 | ||||
Loans individually evaluated for impairment, recorded investment | 172 | 187 | ||||
Loans collectively evaluated for impairment, allowance for loan losses | 1 | 4 | ||||
Loans individually evaluated for impairment, allowance for loan losses | 5 | 5 | ||||
Allowance for loan losses | 6 | 9 | 9 | 12 | 16 | 24 |
Home Equity [Member] | ||||||
Financing Receivable, Allowance for Credit Losses, Additional Information [Line Items] | ||||||
Loans collectively evaluated for impairment, recorded investment | 561 | 698 | ||||
Loans individually evaluated for impairment, recorded investment | 119 | 138 | ||||
Loans collectively evaluated for impairment, allowance for loan losses | 2 | 7 | ||||
Loans individually evaluated for impairment, allowance for loan losses | 17 | 19 | ||||
Allowance for loan losses | 19 | 19 | 26 | 27 | 36 | 46 |
Consumer and other [Member] | ||||||
Financing Receivable, Allowance for Credit Losses, Additional Information [Line Items] | ||||||
Loans collectively evaluated for impairment, recorded investment | 86 | 119 | ||||
Loans collectively evaluated for impairment, allowance for loan losses | 2 | 2 | ||||
Allowance for loan losses | 2 | $ 2 | 2 | $ 2 | $ 2 | $ 4 |
Securities-based lending [Member] | ||||||
Financing Receivable, Allowance for Credit Losses, Additional Information [Line Items] | ||||||
Loans collectively evaluated for impairment, recorded investment | 142 | 107 | ||||
Loans collectively evaluated for impairment, allowance for loan losses | 0 | 0 | ||||
Allowance for loan losses | $ 0 | $ 0 |
Loans Receivable, Net (Detail_7
Loans Receivable, Net (Details - TDRs Accrual and Nonaccrual) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in TDRs | $ 291 | $ 325 |
Financing Receivable, Troubled Debt Restructurings, Modifications, Total1 | 231 | 253 |
Financing Receivable, Troubled Debt Restructurings, Bankruptcy Notifications | 60 | 72 |
Performing Financial Instruments [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in TDRs | 161 | 177 |
Nonperforming Financial Instruments [Member] | FinancingReceivablesNonAccrualCurrent [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in TDRs | 82 | 84 |
Nonperforming Financial Instruments [Member] | Financing Receivables, 30 To 89 Days Past Due [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in TDRs | 17 | 20 |
Nonperforming Financial Instruments [Member] | Financing Receivables, 90 To 179 Days Past Due [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in TDRs | 5 | 9 |
Nonperforming Financial Instruments [Member] | Financing Receivables, Equal to Greater than 180 Days Past Due [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in TDRs | 26 | 35 |
One- To Four-Family [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in TDRs | 172 | 187 |
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | 48 | 55 |
One- To Four-Family [Member] | Performing Financial Instruments [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in TDRs | 83 | 87 |
One- To Four-Family [Member] | Nonperforming Financial Instruments [Member] | FinancingReceivablesNonAccrualCurrent [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in TDRs | 60 | 61 |
One- To Four-Family [Member] | Nonperforming Financial Instruments [Member] | Financing Receivables, 30 To 89 Days Past Due [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in TDRs | 10 | 12 |
One- To Four-Family [Member] | Nonperforming Financial Instruments [Member] | Financing Receivables, 90 To 179 Days Past Due [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in TDRs | 2 | 4 |
One- To Four-Family [Member] | Nonperforming Financial Instruments [Member] | Financing Receivables, Equal to Greater than 180 Days Past Due [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in TDRs | 17 | 23 |
Home Equity [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in TDRs | 119 | 138 |
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | 102 | 121 |
Home Equity [Member] | Performing Financial Instruments [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in TDRs | 78 | 90 |
Home Equity [Member] | Nonperforming Financial Instruments [Member] | FinancingReceivablesNonAccrualCurrent [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in TDRs | 22 | 23 |
Home Equity [Member] | Nonperforming Financial Instruments [Member] | Financing Receivables, 30 To 89 Days Past Due [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in TDRs | 7 | 8 |
Home Equity [Member] | Nonperforming Financial Instruments [Member] | Financing Receivables, 90 To 179 Days Past Due [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in TDRs | 3 | 5 |
Home Equity [Member] | Nonperforming Financial Instruments [Member] | Financing Receivables, Equal to Greater than 180 Days Past Due [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in TDRs | $ 9 | $ 12 |
Loans Receivable, Net (Detail_8
Loans Receivable, Net (Details - TDRs Average Investment and Income) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Financing Receivable, Impaired [Line Items] | ||||
TDRs, Average Recorded Investment | $ 297 | $ 346 | $ 308 | $ 361 |
TDRs, Interest Income Recognized | 4 | 6 | 14 | 16 |
One- To Four-Family [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
TDRs, Average Recorded Investment | 175 | 198 | 179 | 205 |
TDRs, Interest Income Recognized | 2 | 2 | 6 | 6 |
Home Equity [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
TDRs, Average Recorded Investment | 122 | 148 | 129 | 156 |
TDRs, Interest Income Recognized | $ 2 | $ 4 | $ 8 | $ 10 |
Loans Receivable, Net (Detail_9
Loans Receivable, Net (Details - TDRs Specific Valuation Allowance) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Impaired Financing Receivable With And With No Related Allowance [Line Items] | ||
Specific valuation allowance | $ 22 | $ 24 |
One- To Four-Family [Member] | ||
Impaired Financing Receivable With And With No Related Allowance [Line Items] | ||
Impaired Financing Receivable, With Related Allowance, Recorded Investment | 47 | 50 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 125 | 137 |
Impaired Financing Receivable, Recorded Investment | 172 | 187 |
Specific valuation allowance | 5 | 5 |
Impaired Financing Receivable, with Related Allowance, Net Investment | 42 | 45 |
Impaired Financing Receivable, with No Related Allowance, Net Investment | 125 | 137 |
Impaired Financing Receivables, Net Investment, Total | 167 | 182 |
Home Equity [Member] | ||
Impaired Financing Receivable With And With No Related Allowance [Line Items] | ||
Impaired Financing Receivable, With Related Allowance, Recorded Investment | 52 | 60 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 67 | 78 |
Impaired Financing Receivable, Recorded Investment | 119 | 138 |
Specific valuation allowance | 17 | 19 |
Impaired Financing Receivable, with Related Allowance, Net Investment | 35 | 41 |
Impaired Financing Receivable, with No Related Allowance, Net Investment | 67 | 78 |
Impaired Financing Receivables, Net Investment, Total | $ 102 | $ 119 |
Loans Receivable, Net (Detai_10
Loans Receivable, Net (Details - Modifications Types and Financial Impact) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($)loan | Sep. 30, 2018USD ($)loan | Sep. 30, 2019USD ($)loan | Sep. 30, 2018USD ($)loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Financing Receivable, Modifications, Number of Contracts | loan | 22 | 26 | 58 | 121 |
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ 6 | $ 5 | $ 12 | $ 26 |
Re-Age Extension or Interest Capitalization with Interest Rate Reduction [Member] | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Financing Receivable, Troubled Debt Restructuring, Postmodification | 5 | 2 | 8 | 18 |
Other with Interest Rate Reduction [Member] | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Financing Receivable, Troubled Debt Restructuring, Postmodification | 0 | 0 | 0 | 1 |
Other without Interest Rate Reduction [Member] | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ 1 | $ 3 | $ 4 | $ 7 |
One- To Four-Family [Member] | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Financing Receivable, Modifications, Number of Contracts | loan | 7 | 11 | 23 | 46 |
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ 5 | $ 4 | $ 10 | $ 20 |
One- To Four-Family [Member] | Re-Age Extension or Interest Capitalization with Interest Rate Reduction [Member] | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Financing Receivable, Troubled Debt Restructuring, Postmodification | 4 | 2 | 6 | 14 |
One- To Four-Family [Member] | Other with Interest Rate Reduction [Member] | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Financing Receivable, Troubled Debt Restructuring, Postmodification | 0 | 0 | 0 | 0 |
One- To Four-Family [Member] | Other without Interest Rate Reduction [Member] | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ 1 | $ 2 | $ 4 | $ 6 |
Home Equity [Member] | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Financing Receivable, Modifications, Number of Contracts | loan | 15 | 15 | 35 | 75 |
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ 1 | $ 1 | $ 2 | $ 6 |
Home Equity [Member] | Re-Age Extension or Interest Capitalization with Interest Rate Reduction [Member] | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Financing Receivable, Troubled Debt Restructuring, Postmodification | 1 | 0 | 2 | 4 |
Home Equity [Member] | Other with Interest Rate Reduction [Member] | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Financing Receivable, Troubled Debt Restructuring, Postmodification | 0 | 0 | 0 | 1 |
Home Equity [Member] | Other without Interest Rate Reduction [Member] | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ 0 | $ 1 | $ 0 | $ 1 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Details - Fair Value of Derivatives) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative, Collateral [Abstract] | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral | $ 5 | $ 175 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 772 | 131 |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 10,643 | 9,763 |
Derivative Asset | 0 | 1 |
Derivative liability | 0 | 0 |
Derivative Asset (Liability), Net | 0 | 1 |
Fair Value Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 10,643 | 9,763 |
Derivative Asset | 0 | 1 |
Derivative liability | 0 | 0 |
Derivative Asset (Liability), Net | $ 0 | $ 1 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities (Details - Cumulative Basis Adjustments) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Summary of Dervative Instruments By Hedge Designation [Abstract] | ||
Carrying Amount of Hedged Assets | $ 13,386 | $ 13,203 |
Cumulative amount of basis adjustment included in total carrying amount of fair value hedges | 891 | (10) |
Cumulative amount of basis adjustment included in carrying amount of discontinued fair value hedges | (274) | (385) |
Closed Portfolio and Beneficial Interest Last of Layer Amortized Cost [Abstract] | ||
Prepayable Financial Asset Closed Portfolio, Last-of-Layer, Amortized Cost | 45 | 810 |
Amount Representing Hedged Items Designated as Last-of-Layer | 30 | 192 |
Cumulative Basis Adjustment Associated with Hedged Items Designated as Last-of-Layer | $ 1 | $ 6 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities (Details - Fair Value Hedge) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total interest income | $ 521 | $ 514 | $ 1,636 | $ 1,471 |
Interest Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total interest income | 521 | 514 | 1,636 | 1,471 |
Net gain (loss) on fair value hedging relationships | 4 | 2 | 28 | (15) |
Agency debentures [Member] | Interest Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts recognized as interest settlements on derivatives | 0 | (1) | 0 | (4) |
Changes in fair value of hedged item | 30 | (8) | 61 | (74) |
Changes in fair value of derivatives | (29) | 8 | (61) | 74 |
Net gain (loss) on fair value hedging relationships | 1 | (1) | 0 | (4) |
Agency mortgage-backed securities [Member] | Interest Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts recognized as interest settlements on derivatives | (3) | 1 | 1 | (14) |
Amortization of basis adjustment | 8 | 7 | 27 | 16 |
Changes in fair value of hedged item | 258 | (88) | 946 | (416) |
Changes in fair value of derivatives | (260) | 83 | (946) | 403 |
Net gain (loss) on fair value hedging relationships | $ 3 | $ 3 | $ 28 | $ (11) |
Deposits (Details)
Deposits (Details) - USD ($) $ in Millions | 1 Months Ended | ||
Jun. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Deposits By Type [Abstract] | |||
Sweep deposits | $ 30,778 | $ 39,322 | |
Savings deposits(1) | 7,964 | 4,133 | |
Other deposits(2) | 1,640 | 1,858 | |
Total deposits | 40,382 | 45,313 | |
Deposits Textuals [Abstract] | |||
Premium Savings Account deposits | 6,300 | 2,000 | |
Non-interest-bearing deposits | $ 183 | $ 193 | |
Deposits transferred to third-party banks | $ 6,600 |
Other Borrowings and Corporat_3
Other Borrowings and Corporate Debt (Details - Other Borrowings) $ in Millions | Sep. 30, 2019USD ($) |
Revolving Credit Facility [Member] | Parent Company [Member] | June 2024 Maturity [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Fair Value of Amount Outstanding | $ 0 |
Line of Credit Facility, Maximum Borrowing Capacity | 300 |
Revolving Credit Facility [Member] | E TRADE Securities [Member] | June 2020 Maturity [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Fair Value of Amount Outstanding | 0 |
Line of Credit Facility, Maximum Borrowing Capacity | 600 |
FHLB secured credit facility [Member] | E TRADE Bank [Member] | Determined at Trade [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Fair Value of Amount Outstanding | 0 |
Line of Credit Facility, Maximum Borrowing Capacity | 7,290 |
Federal Reserve Bank discount window [Member] | E TRADE Bank [Member] | Overnight [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Fair Value of Amount Outstanding | 0 |
Line of Credit Facility, Maximum Borrowing Capacity | 1,131 |
Secured Committed Line of Credit [Member] | E TRADE Securities [Member] | June 2020 Maturity [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Fair Value of Amount Outstanding | 0 |
Line of Credit Facility, Maximum Borrowing Capacity | 175 |
Unsecured Uncommitted Line of Credit [Member] | E TRADE Securities [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Fair Value of Amount Outstanding | 0 |
Line of Credit Facility, Maximum Borrowing Capacity | 75 |
Unsecured Uncommitted Line of Credit [Member] | E TRADE Securities [Member] | June 2020 Maturity [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Fair Value of Amount Outstanding | 0 |
Line of Credit Facility, Maximum Borrowing Capacity | 50 |
Secured Uncommitted Line of Credit [Member] | E TRADE Securities [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Fair Value of Amount Outstanding | 0 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 425 |
Other Borrowings and Corporat_4
Other Borrowings and Corporate Debt (Details - Corporate Debt) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Total corporate debt | $ 1,410 | $ 1,409 |
Corporate Debt Securities [Member] | ||
Debt Instrument [Line Items] | ||
Face Value | 1,420 | 1,420 |
Unamortized discount | (10) | (11) |
Total corporate debt | 1,410 | 1,409 |
Senior Notes Interest Bearing Two And Nine Five Percent [Member] | Corporate Debt Securities [Member] | ||
Debt Instrument [Line Items] | ||
Face Value | 600 | 600 |
Unamortized discount | (3) | (4) |
Total corporate debt | $ 597 | $ 596 |
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||
Debt instrument maturity year | 2022 | 2022 |
Debt instrument, interest rate, stated percentage | 2.95% | 2.95% |
Senior Notes Interest Bearing Three And Eight Percent [Member] | Corporate Debt Securities [Member] | ||
Debt Instrument [Line Items] | ||
Face Value | $ 400 | $ 400 |
Unamortized discount | (3) | (3) |
Total corporate debt | $ 397 | $ 397 |
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||
Debt instrument maturity year | 2027 | 2027 |
Debt instrument, interest rate, stated percentage | 3.80% | 3.80% |
Senior Notes Interest Bearing Four And Five Percent [Member] | Corporate Debt Securities [Member] | ||
Debt Instrument [Line Items] | ||
Face Value | $ 420 | $ 420 |
Unamortized discount | (4) | (4) |
Total corporate debt | $ 416 | $ 416 |
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||
Debt instrument maturity year | 2028 | 2028 |
Debt instrument, interest rate, stated percentage | 4.50% | 4.50% |
Lease Arrangements (Details)
Lease Arrangements (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Weighted average remaining lease term | 8 years 8 months 12 days | 8 years 8 months 12 days |
Future minimum lease payments | $ 26 | $ 26 |
Sublease proceeds | $ 10 | $ 10 |
Lease, Cost [Abstract] | ||
Weighted average discount rate | 4.30% | 4.30% |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 8 | $ 21 |
Minimum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, operating lease, term of contract | 1 year | 1 year |
Maximum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, operating lease, term of contract | 12 years | 12 years |
Lessee, operating lease, renewal term | 10 years | 10 years |
Lease Arrangements Lease Arrang
Lease Arrangements Lease Arrangements (Details - Lease Assets and Liabilities) $ in Millions | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Operating lease assets, net | $ 211 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets |
Operating lease liabilities | $ 243 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilities |
Lease Arrangements Lease Arra_2
Lease Arrangements Lease Arrangements (Details - Lease Cost) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 10 | $ 26 |
Variable lease cost | 0 | 2 |
Net lease expense | $ 10 | $ 28 |
Lease Arrangements Lease Arra_3
Lease Arrangements Lease Arrangements (Details - Maturity of Lease Liabilities) $ in Millions | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 8 |
2020 | 37 |
2021 | 36 |
2022 | 32 |
2023 | 33 |
Thereafter | 149 |
Total lease payments | 295 |
Imputed interest | (52) |
Present value of lease liabilities | $ 243 |
Shareholders' Equity (Details -
Shareholders' Equity (Details - Stock) - USD ($) $ / shares in Units, $ in Millions | Oct. 16, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Class of Stock [Line Items] | |||||||||
Preferred stock, shares outstanding | 403,000 | 403,000 | 403,000 | ||||||
Preferred stock, amount outstanding | $ 689 | $ 689 | $ 689 | ||||||
Preferred stock dividend declared | $ 40 | $ 36 | |||||||
Dividends declared per common share | $ 0.14 | $ 0.14 | $ 0.14 | $ 0 | $ 0 | ||||
Common stock dividends | $ 34 | $ 34 | $ 35 | ||||||
Series A Preferred Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred stock, dividend rate, percentage | 5.875% | ||||||||
Preferred stock, shares outstanding | 400,000 | 400,000 | |||||||
Preferred stock, liquidation preference per share | $ 1,000 | $ 1,000 | |||||||
Preferred stock, amount outstanding | $ 394 | $ 394 | 394 | ||||||
Dividends payable, date declared | Jul. 25, 2019 | Feb. 7, 2019 | Jul. 26, 2018 | Feb. 8, 2018 | |||||
Dividends payable, date of record | Aug. 30, 2019 | Feb. 28, 2019 | Aug. 31, 2018 | Feb. 28, 2018 | |||||
Dividends payable, date to be paid | Sep. 16, 2019 | Mar. 15, 2019 | Sep. 17, 2018 | Mar. 15, 2018 | |||||
Preferred stock dividend declared, per share | $ 29.38 | $ 29.38 | $ 29.38 | $ 29.38 | |||||
Preferred stock dividend declared | $ 12 | $ 12 | $ 12 | $ 12 | |||||
Series A Preferred Stock [Member] | LIBOR [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred stock, basis spread on variable rate | 4.435% | 4.435% | |||||||
Series B Preferred Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred stock, dividend rate, percentage | 5.30% | ||||||||
Preferred stock, shares outstanding | 3,000 | 3,000 | |||||||
Preferred stock, liquidation preference per share | $ 100,000 | $ 100,000 | |||||||
Preferred stock, amount outstanding | $ 295 | $ 295 | $ 295 | ||||||
Dividends payable, date declared | Jul. 25, 2019 | Feb. 7, 2019 | Jul. 26, 2018 | ||||||
Dividends payable, date of record | Aug. 30, 2019 | Feb. 28, 2019 | Aug. 31, 2018 | ||||||
Dividends payable, date to be paid | Sep. 16, 2019 | Mar. 15, 2019 | Sep. 17, 2018 | ||||||
Preferred stock dividend declared, per share | $ 2,650 | $ 2,650 | $ 4,107.50 | ||||||
Preferred stock dividend declared | $ 8 | $ 8 | $ 12 | ||||||
Series B Preferred Stock [Member] | LIBOR [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred stock, basis spread on variable rate | 3.16% | 3.16% | |||||||
Common Stock | |||||||||
Dividends payable, date declared | Jul. 17, 2019 | Apr. 16, 2019 | Jan. 23, 2019 | ||||||
Dividends payable, date of record | Aug. 19, 2019 | May 13, 2019 | Feb. 1, 2019 | ||||||
Dividends payable, date to be paid | Aug. 26, 2019 | May 20, 2019 | Feb. 15, 2019 | ||||||
Dividends declared per common share | $ 0.14 | $ 0.14 | $ 0.14 | ||||||
Common stock dividends | $ 34 | $ 34 | $ 35 | $ 103 | |||||
Common Stock | Subsequent Event [Member] | |||||||||
Dividends payable, date declared | Oct. 16, 2019 | ||||||||
Dividends payable, date of record | Nov. 8, 2019 | ||||||||
Dividends payable, date to be paid | Nov. 15, 2019 | ||||||||
Dividends declared per common share | $ 0.14 |
Shareholders' Equity (Details_2
Shareholders' Equity (Details - Share Repurchases) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Oct. 29, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jul. 31, 2019 |
Repurchases of common stock | $ 566 | $ 222 | $ 120 | $ 309 | $ 189 | $ 140 | ||
Common Stock | ||||||||
Repurchases of common stock, shares | 13 | 5 | 2 | 5 | 3 | 3 | ||
Common Stock | Current share repurchase program [Member] | ||||||||
Repurchases of stock, authorized amount | $ 1,500 | |||||||
Repurchases of common stock, shares | 9.8 | |||||||
Repurchases of common stock | $ 409 | |||||||
Common Stock | Prior share repurchase program [Member] | ||||||||
Repurchases of stock, authorized amount | $ 1,000 | |||||||
Repurchases of common stock, shares | 3.6 | |||||||
Repurchases of common stock | $ 157 | |||||||
Common Stock | Subsequent Event [Member] | Current share repurchase program [Member] | ||||||||
Repurchases of common stock, shares | 0.9 | |||||||
Average repurchase price | $ 40.88 |
Shareholders' Equity (Details_3
Shareholders' Equity (Details - Accumulated Other Comprehensive Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning balance, | $ (275) | $ (275) | ||||||
Transfer of held-to-maturity securities to available-for-sale securities | $ 0 | $ 0 | 0 | $ 6 | ||||
Other comprehensive income (loss) | 34 | $ 112 | 105 | (94) | $ (59) | $ (129) | 251 | (282) |
Ending balance, | (24) | (24) | ||||||
Transfer of held-to-maturity securities to available-for-sale securities | 4,700 | 0 | 4,672 | |||||
Other comprehensive income, transfers from held-to-maturity to available-for-sale securities, before tax | 7 | 0 | 7 | |||||
Transfer of held-to-maturity securities to available-for-sale securities | 0 | 0 | 0 | 6 | ||||
Available-for-sale securities | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning balance, | (58) | (170) | (275) | (235) | (176) | (26) | (275) | (26) |
Other comprehensive income (loss), before reclassifications | 43 | 64 | 112 | (86) | (51) | (128) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (9) | 48 | (7) | (8) | (8) | (7) | ||
Transfer of held-to-maturity securities to available-for-sale securities | 0 | 6 | ||||||
Other comprehensive income (loss) | 34 | 112 | 105 | (94) | (59) | (129) | ||
Ending balance, | $ (24) | $ (58) | (170) | $ (329) | $ (235) | (176) | $ (24) | $ (329) |
Transfer of held-to-maturity securities to available-for-sale securities | 0 | 6 | ||||||
Available-for-sale securities | Hedge accounting adoption | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Cumulative effect of accounting change | 0 | (7) | ||||||
Available-for-sale securities | Reclassification of tax effects due to federal tax reform | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Cumulative effect of accounting change | $ 0 | $ (14) |
Shareholders' Equity (Details_4
Shareholders' Equity (Details - Other Comprehensive Income Activity) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Available-for-sale securities, before tax | ||||||||
Unrealized gains (losses), before tax | $ 58 | $ (112) | $ 294 | $ (353) | ||||
Reclassification into earnings, before tax | (12) | (11) | 43 | (32) | ||||
Other comprehensive income, transfers from held-to-maturity to available-for-sale securities, before tax | $ 7 | 0 | 7 | |||||
Net change from available-for-sale securities, before tax | 46 | (123) | 337 | (378) | ||||
Available-for-sale securities, tax effect | ||||||||
Unrealized gains (losses), tax effect | (15) | 26 | (75) | 88 | ||||
Reclassification into earnings, tax effect | (3) | (3) | 11 | (9) | ||||
Other comprehensive income, transfers from held-to-maturity to available-for-sale securities, tax effect | 0 | (1) | ||||||
Net change from available-for-sale securities, tax effect | (12) | 29 | (86) | 96 | ||||
Available-for-sale securities, after tax | ||||||||
Unrealized gains (losses), after tax | 43 | (86) | 219 | (265) | ||||
Reclassification into earnings, after tax | 9 | 8 | (32) | 23 | ||||
Transfer of held-to-maturity securities to available-for-sale securities | 0 | 0 | 0 | 6 | ||||
Net change from available-for-sale securities | 34 | (94) | 251 | (282) | ||||
Other comprehensive income (loss), before tax | 46 | (123) | 337 | (378) | ||||
Other comprehensive income (loss), tax effect | (12) | 29 | (86) | 96 | ||||
Other comprehensive income (loss) | $ 34 | $ 112 | $ 105 | $ (94) | $ (59) | $ (129) | $ 251 | $ (282) |
Shareholders' Equity (Details_5
Shareholders' Equity (Details - Reclassification Out Of Accumulated Other Comprehensive Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Gains (losses) on securities and other, net | $ 16 | $ 17 | $ (37) | $ 42 | ||||
Interest income | 521 | 514 | 1,636 | 1,471 | ||||
Reclassification into earnings, net | 380 | 374 | 1,067 | 1,053 | ||||
Income tax (expense) benefit | (106) | (89) | (284) | (271) | ||||
Other Non-interest expense | (24) | (15) | (65) | (56) | ||||
Net income | 274 | $ 219 | $ 290 | 285 | $ 250 | $ 247 | 783 | 782 |
Available-for-sale securities | Reclassification out of Accumulated Other Comprehensive Income (Loss) | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Gains (losses) on securities and other, net | 13 | 12 | (41) | 34 | ||||
Interest income | (1) | (1) | (2) | (2) | ||||
Reclassification into earnings, net | 12 | 11 | (43) | 32 | ||||
Income tax (expense) benefit | (3) | (3) | 11 | (9) | ||||
Net income | $ 9 | $ 8 | $ (32) | $ 23 |
Earnings per Share (Details)
Earnings per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Basic weighted-average shares outstanding | 235,829 | 259,498 | 241,657 | 263,292 |
Restricted stock and options | 500 | 1,200 | 500 | 1,100 |
Diluted weighted-average shares outstanding | 236,313 | 260,661 | 242,199 | 264,433 |
Regulatory Requirements (Detail
Regulatory Requirements (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Broker Dealer Subsidiaries Net Capital [Line Items] | |||
Minimum percentage of net capital required for broker dealer subsidiary aggregate indebtedness | 6.67% | 6.67% | |
Total Net Capital [Abstract] | |||
Total Required Net Capital | $ 223,000,000 | $ 223,000,000 | $ 210,000,000 |
Total Net Capital | 1,375,000,000 | 1,375,000,000 | 1,338,000,000 |
Total Excess Net Capital | 1,152,000,000 | 1,152,000,000 | 1,128,000,000 |
E TRADE Securities [Member] | |||
Broker Dealer Subsidiaries Net Capital [Line Items] | |||
Capital requirement of consolidated broker-dealer subsidiary electing alternative method | $ 250,000 | $ 250,000 | |
Minimum percentage of aggregate debit balances to calculate net capital | 2.00% | 2.00% | |
Broker-Dealer, Minimum Net Capital Required, Alternative Standard [Abstract] | |||
Broker-Dealer, Minimum Net Capital Required, Alternative Standard | $ 221,000,000 | $ 221,000,000 | 209,000,000 |
Broker-Dealer, Net Capital | 1,348,000,000 | 1,348,000,000 | 1,294,000,000 |
Broker-Dealer, Excess Net Capital, Alternative Standard | $ 1,127,000,000 | 1,127,000,000 | 1,085,000,000 |
Total Net Capital [Abstract] | |||
Dividends from subsidiaries paid to parent company | $ 660,000,000 | ||
E TRADE Futures [Member] | |||
Broker Dealer Subsidiaries Net Capital [Line Items] | |||
Minimum percentage of total risk margin requirements to calculate net capital | 8.00% | 8.00% | |
Futures Commission Merchant, Commodity Exchange Act, Excess Net Capital [Abstract] | |||
Futures Commission Merchant, Commodity Exchange Act, Required Net Capital | $ 2,000,000 | $ 2,000,000 | 1,000,000 |
Futures Commission Merchant, Commodity Exchange Act, Adjusted Net Capital | 27,000,000 | 27,000,000 | 26,000,000 |
Futures Commission Merchant, Commodity Exchange Act, Excess Net Capital | 25,000,000 | 25,000,000 | 25,000,000 |
E TRADE Futures [Member] | Minimum [Member] | |||
Futures Commission Merchant, Commodity Exchange Act, Excess Net Capital [Abstract] | |||
Futures Commission Merchant, Commodity Exchange Act, Required Net Capital | 1,000,000 | $ 1,000,000 | |
International broker-dealer [Member] | |||
Total Net Capital [Abstract] | |||
Total Required Net Capital | 0 | ||
Total Net Capital | 18,000,000 | ||
Total Excess Net Capital | $ 18,000,000 | ||
E TRADE Bank [Member] | |||
Total Net Capital [Abstract] | |||
Dividends from subsidiaries paid to parent company | $ 535,000,000 |
Regulatory Requirements - Bank
Regulatory Requirements - Bank Capital Requirements (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Total risk-based capital [Abstract] | ||
Minimum percentage of Common Equity Tier 1 capital conservation buffer | 2.50% | |
Minimum [Member] | Capital conservation buffer [Member] | ||
Common equity Tier I capital [Abstract] | ||
Common Equity Tier 1 Capital Required To Be Well Capitalized To Risk Weighted Assets | 4.50% | |
Tier I risk based capital [Abstract] | ||
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 6.00% | |
Total risk-based capital [Abstract] | ||
Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | |
Parent Company [Member] | ||
Tier I leverage [Abstract] | ||
Tier 1 Leverage Capital | $ 4,044 | $ 4,097 |
Tier 1 Leverage Capital to Average Assets | 6.90% | 6.60% |
Tier 1 Leverage Capital Required to be Well Capitalized | $ 2,940 | $ 3,101 |
Tier 1 Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% | 5.00% |
Excess Tier 1 Leverage Capital | $ 1,104 | $ 996 |
Common equity Tier I capital [Abstract] | ||
Common Equity Tier 1 Capital | $ 3,355 | $ 3,408 |
Common Equity Tier 1 Capital to Risk Weighted Assets | 31.40% | 31.10% |
Common Equity Tier 1 Capital Required To Be Well Capitalized | $ 695 | $ 713 |
Common Equity Tier 1 Capital Required To Be Well Capitalized To Risk Weighted Assets | 6.50% | 6.50% |
Excess Common Equity Tier 1 Capital To Be Well Capitalized | $ 2,660 | $ 2,695 |
Tier I risk based capital [Abstract] | ||
Tier One Risk Based Capital | $ 4,044 | $ 4,097 |
Tier One Risk Based Capital to Risk Weighted Assets | 37.80% | 37.30% |
Tier One Risk Based Capital Required to be Well Capitalized | $ 855 | $ 877 |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | 8.00% |
Excess Tier One Risk Based Capital to be Well Capitalized | $ 3,189 | $ 3,220 |
Total risk-based capital [Abstract] | ||
Capital | $ 4,079 | $ 4,143 |
Capital to Risk Weighted Assets | 38.20% | 37.80% |
Capital Required to be Well Capitalized | $ 1,069 | $ 1,097 |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% |
Excess capital | $ 3,010 | $ 3,046 |
E TRADE Bank [Member] | ||
Tier I leverage [Abstract] | ||
Tier 1 Leverage Capital | $ 3,404 | $ 3,484 |
Tier 1 Leverage Capital to Average Assets | 7.40% | 7.10% |
Tier 1 Leverage Capital Required to be Well Capitalized | $ 2,292 | $ 2,461 |
Tier 1 Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% | 5.00% |
Excess Tier 1 Leverage Capital | $ 1,112 | $ 1,023 |
Common equity Tier I capital [Abstract] | ||
Common Equity Tier 1 Capital | $ 3,404 | $ 3,484 |
Common Equity Tier 1 Capital to Risk Weighted Assets | 37.20% | 34.90% |
Common Equity Tier 1 Capital Required To Be Well Capitalized | $ 595 | $ 650 |
Common Equity Tier 1 Capital Required To Be Well Capitalized To Risk Weighted Assets | 6.50% | 6.50% |
Excess Common Equity Tier 1 Capital To Be Well Capitalized | $ 2,809 | $ 2,834 |
Tier I risk based capital [Abstract] | ||
Tier One Risk Based Capital | $ 3,404 | $ 3,484 |
Tier One Risk Based Capital to Risk Weighted Assets | 37.20% | 34.90% |
Tier One Risk Based Capital Required to be Well Capitalized | $ 732 | $ 800 |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | 8.00% |
Excess Tier One Risk Based Capital to be Well Capitalized | $ 2,672 | $ 2,684 |
Total risk-based capital [Abstract] | ||
Capital | $ 3,431 | $ 3,521 |
Capital to Risk Weighted Assets | 37.50% | 35.20% |
Capital Required to be Well Capitalized | $ 916 | $ 999 |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% |
Excess capital | $ 2,515 | $ 2,522 |
Dividends from subsidiaries paid to parent company | 535 | |
E TRADE Savings Bank | ||
Tier I leverage [Abstract] | ||
Tier 1 Leverage Capital | $ 1,472 | $ 1,456 |
Tier 1 Leverage Capital to Average Assets | 41.90% | 26.60% |
Tier 1 Leverage Capital Required to be Well Capitalized | $ 176 | $ 273 |
Tier 1 Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% | 5.00% |
Excess Tier 1 Leverage Capital | $ 1,296 | $ 1,183 |
Common equity Tier I capital [Abstract] | ||
Common Equity Tier 1 Capital | $ 1,472 | $ 1,456 |
Common Equity Tier 1 Capital to Risk Weighted Assets | 213.00% | 169.40% |
Common Equity Tier 1 Capital Required To Be Well Capitalized | $ 45 | $ 56 |
Common Equity Tier 1 Capital Required To Be Well Capitalized To Risk Weighted Assets | 6.50% | 6.50% |
Excess Common Equity Tier 1 Capital To Be Well Capitalized | $ 1,427 | $ 1,400 |
Tier I risk based capital [Abstract] | ||
Tier One Risk Based Capital | $ 1,472 | $ 1,456 |
Tier One Risk Based Capital to Risk Weighted Assets | 213.00% | 169.40% |
Tier One Risk Based Capital Required to be Well Capitalized | $ 56 | $ 69 |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | 8.00% |
Excess Tier One Risk Based Capital to be Well Capitalized | $ 1,416 | $ 1,387 |
Total risk-based capital [Abstract] | ||
Capital | $ 1,472 | $ 1,456 |
Capital to Risk Weighted Assets | 213.00% | 169.40% |
Capital Required to be Well Capitalized | $ 69 | $ 86 |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% |
Excess capital | $ 1,403 | $ 1,370 |
Commitments, Contingencies an_2
Commitments, Contingencies and Other Regulatory Matters (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2003 | Sep. 30, 2019 | |
Loss Contingencies [Line Items] | ||
Commitments to fund partnerships | $ 53 | |
Time deposit maturities, next rolling twelve months | $ 15 | |
Axajo Complaint [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Damages Awarded, Value | $ 1 |