Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 26, 2015 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | SCHW | |
Entity Registrant Name | SCHWAB CHARLES CORP | |
Entity Central Index Key | 316,709 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,316,523,363 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Net Revenues | |||||
Asset management and administration fees | $ 663 | $ 649 | $ 1,977 | $ 1,892 | |
Interest revenue | 669 | 600 | 1,931 | 1,767 | |
Interest expense | (34) | (27) | (96) | (79) | |
Net interest revenue | 635 | 573 | 1,835 | 1,688 | |
Trading revenue | 228 | 209 | 658 | 668 | |
Other | 66 | 120 | 208 | 253 | |
Provision for loan losses | 5 | 1 | 11 | 7 | |
Net impairment losses on securities | [1] | (1) | (1) | ||
Total net revenues | 1,597 | 1,551 | 4,689 | 4,507 | |
Expenses Excluding Interest | |||||
Compensation and benefits | 548 | 593 | 1,669 | 1,641 | |
Professional services | 114 | 117 | 340 | 335 | |
Occupancy and equipment | 92 | 82 | 260 | 242 | |
Advertising and market development | 58 | 59 | 189 | 187 | |
Communications | 58 | 55 | 175 | 168 | |
Depreciation and amortization | 57 | 49 | 166 | 145 | |
Other | 87 | 78 | 256 | 228 | |
Total expenses excluding interest | 1,014 | 1,033 | 3,055 | 2,946 | |
Income before taxes on income | 583 | 518 | 1,634 | 1,561 | |
Taxes on income | 207 | 197 | 603 | 590 | |
Net Income | 376 | 321 | 1,031 | 971 | |
Preferred stock dividends and other | [2] | 11 | 9 | 45 | 39 |
Net Income Available to Common Stockholders | $ 365 | $ 312 | $ 986 | $ 932 | |
Weighted-Average Common Shares Outstanding - Diluted | 1,328 | 1,316 | 1,326 | 1,313 | |
Earnings Per Common Share - Basic | $ 0.28 | $ 0.24 | $ 0.75 | $ 0.71 | |
Earnings Per Common Share - Diluted | $ 0.28 | $ 0.24 | $ 0.74 | $ 0.70 | |
[1] | There were no net impairment losses on securities for the three or nine months ended September 30, 2015. Net impairment losses on securities include total other-than-temporary impairment losses of $1 million recognized in other comprehensive income, net of $0 reclassified from other comprehensive income, for the three and nine months ended September 30, 2014. | ||||
[2] | Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested restricted stock units. |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2014 | Sep. 30, 2014 | |
Condensed Consolidated Statements of Income [Abstract] | ||
Total other-than-temporary impairment losses | $ 1 | $ 1 |
Impairment losses reclassified from other comprehensive income | $ 0 | $ 0 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net Income | $ 376 | $ 321 | $ 1,031 | $ 971 |
Change in net unrealized gain on securities available for sale: | ||||
Net unrealized (loss) gain | (249) | (25) | (233) | 260 |
Reclassification of impairment charges included in net impairment losses on securities | 1 | 1 | ||
Other reclassifications included in other revenue | (12) | (14) | ||
Other comprehensive income (loss), before tax | (249) | (36) | (233) | 247 |
Income tax effect | 94 | 13 | 87 | (93) |
Other comprehensive income (loss), net of tax | (155) | (23) | (146) | 154 |
Comprehensive Income | $ 221 | $ 298 | $ 885 | $ 1,125 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 10,366 | $ 11,363 |
Cash and investments segregated and on deposit for regulatory purposes (including resale agreements of $7,852 at September 30, 2015 and $10,186 at December 31, 2014) | 17,243 | 20,781 |
Receivables from brokers, dealers, and clearing organizations | 583 | 469 |
Receivables from brokerage clients — net | 17,089 | 15,669 |
Other securities owned — at fair value | 470 | 516 |
Securities available for sale | 66,354 | 54,783 |
Securities held to maturity (fair value — $41,297 at September 30, 2015 and $34,743 at December 31, 2014) | 40,534 | 34,389 |
Bank loans — net | 14,252 | 13,399 |
Equipment, office facilities, and property — net | 1,126 | 1,039 |
Goodwill | 1,227 | 1,227 |
Intangible assets — net | 192 | 227 |
Other assets | 966 | 780 |
Total assets | 170,402 | 154,642 |
Liabilities and Stockholders' Equity | ||
Bank deposits | 119,017 | 102,815 |
Payables to brokers, dealers, and clearing organizations | 2,707 | 2,004 |
Payables to brokerage clients | 31,040 | 34,305 |
Accrued expenses and other liabilities | 1,549 | 1,816 |
Long-term debt | 2,893 | 1,899 |
Total liabilities | 157,206 | 142,839 |
Stockholders' equity: | ||
Preferred stock — $.01 par value per share; aggregate liquidation preference of $1,485 at September 30, 2015 and $885 at December 31, 2014 | 1,457 | 872 |
Common stock — 3 billion shares authorized; $.01 par value per share; 1,487,543,446 shares issued | 15 | 15 |
Additional paid-in capital | 4,160 | 4,050 |
Retained earnings | 10,952 | 10,198 |
Treasury stock, at cost — 171,156,665 shares at September 30, 2015 and 176,821,202 shares at December 31, 2014 | (3,407) | (3,497) |
Accumulated other comprehensive income | 19 | 165 |
Total stockholders' equity | 13,196 | 11,803 |
Total liabilities and stockholders' equity | $ 170,402 | $ 154,642 |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Cash and investments segregated and on deposit for regulatory purposes, resale agreements | $ 7,852 | $ 10,186 |
Securities held to maturity, Fair Value | $ 41,297 | $ 34,743 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, aggregate liquidation preference | $ 1,485 | $ 885 |
Common stock, shares authorized | 3,000,000,000 | 3,000,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares issued | 1,487,543,446 | 1,487,543,446 |
Treasury stock, shares | 171,156,665 | 176,821,202 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | ||
Cash Flows from Operating Activities | |||
Net income | $ 1,031 | $ 971 | |
Adjustments to reconcile net income to net cash (used for) provided by operating activities: | |||
Provision for loan losses | (11) | (7) | |
Net impairment losses on securities | [1] | 1 | |
Stock-based compensation | 98 | 80 | |
Depreciation and amortization | 166 | 145 | |
Premium amortization, net, on securities available for sale and securities held to maturity | 119 | 91 | |
Other | 7 | (5) | |
Net change in: | |||
Cash and investments segregated and on deposit for regulatory purposes | 3,538 | 3,663 | |
Receivables from brokers, dealers, and clearing organizations | (110) | 56 | |
Receivables from brokerage clients | (1,426) | (1,469) | |
Other securities owned | 46 | (55) | |
Other assets | (59) | (49) | |
Payables to brokers, dealers, and clearing organizations | 473 | 389 | |
Payables to brokerage clients | (3,265) | (2,202) | |
Accrued expenses and other liabilities | (253) | (121) | |
Net cash provided by operating activities | 354 | 1,488 | |
Cash Flows from Investing Activities | |||
Purchases of securities available for sale | (17,497) | (10,556) | |
Proceeds from sales of securities available for sale | 599 | 5,724 | |
Principal payments on securities available for sale | 5,172 | 4,630 | |
Purchases of securities held to maturity | (8,824) | (5,612) | |
Principal payments on securities held to maturity | 2,709 | 1,948 | |
Net increase in bank loans | (863) | (672) | |
Purchase of equipment, office facilities, and property | (204) | (310) | |
Other investing activities | (10) | (8) | |
Net cash used for investing activities | (18,918) | (4,856) | |
Cash Flows from Financing Activities | |||
Net change in bank deposits | 16,202 | 4,373 | |
Issuance of long-term debt | 998 | ||
Repayment of long-term debt | (6) | (5) | |
Net proceeds from preferred stock offerings | 581 | ||
Dividends paid | (288) | (286) | |
Proceeds from stock options exercised and other | 67 | 138 | |
Other financing activities | 13 | 8 | |
Net cash provided by financing activities | 17,567 | 4,228 | |
Increase (Decrease) in Cash and Cash Equivalents | (997) | 860 | |
Cash and Cash Equivalents at Beginning of Period | 11,363 | 7,728 | |
Cash and Cash Equivalents at End of Period | 10,366 | 8,588 | |
Cash paid during the period for: | |||
Interest | 107 | 91 | |
Income taxes | 598 | 588 | |
Non-cash investing activity: | |||
Securities purchased during the period but settled after period end | $ 230 | $ 243 | |
[1] | There were no net impairment losses on securities for the three or nine months ended September 30, 2015. Net impairment losses on securities include total other-than-temporary impairment losses of $1 million recognized in other comprehensive income, net of $0 reclassified from other comprehensive income, for the three and nine months ended September 30, 2014. |
Introduction and Basis of Prese
Introduction and Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Introduction and Basis of Presentation [Abstract] | |
Introduction and Basis of Presentation | 1. Introduction and Basis of Presentation The Charles Schwab Corporation (CSC) is a savings and loan holding company engaged , through its subsidiaries, in wealth management, securities brokerage, banking, money management, and financial advisory services. Charles Schwab & Co., Inc. (Schwab) is a securities broker-dealer with over 325 domestic branch offices in 45 states , as well as a branch in each of the Commonwealth of Puerto Rico and London, England. In addition, Schwab serves clients in Hong Kong through one of CSC’s subsidiaries. Other subsidiaries include Charles Schwab Bank (Schwab Bank), a federal savings bank, and Charles Schwab Investment Management, Inc. (CSIM), the investment advisor for Schwab’s proprietary mutual funds, which are referred to as the Schwab Funds ® , and for Schwab’s exchange-traded funds, which are referred to as the Schwab ETFs™. The accompanying unaudited condensed consolidated financial statements include CSC and its majority-owned subsidiaries (collectively referred to as the Company). Intercompany balances and transactions have been eliminated. These condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (U.S.), which require management to make certain estimates and assumptions that affect the reported amounts in the accompanying financial statements. Certain estimates relate to valuation of goodwill, allowance for loan losses, legal and regulatory reserves, and other-than-temporary impairment (OTTI) of securities available for sale and securities held to maturity. Actual results may differ from those estimates. These condensed consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the periods presented. These adjustments are of a normal recurring nature. The Company’s results for any interim period are not necessarily indicative of results for a full year or any other interim period. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The Company’s significant accounting policies are included in “Notes – 2. Summary of Significant Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. There have been no significant changes to these accounting policies during the first nine months of 2015. Principles of Consolidation The Company accounts for investments in entities for which it owns a voting interest and for which it has the ability to exercise significant influence over operating and financing decisions using the equity method of accounting. Investments in entities for which the Company does not have the ability to exercise significant influence are generally carried at cost. Both equity method and cost method investments are included in other assets. The Company 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. For interests in entities other than the Company’s sponsored funds, the evaluation is based on a qualitative assessment of whether the Company is the primary beneficiary of the VIE. The primary beneficiary of a VIE has the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses of the VIE that potentially could be significant to the VIE or the right to receive benefits from the VIE that potentially could be significant to the VIE. The primary beneficiary determination for the Company’s sponsored funds is based on a quantitative assessment of whether the Company would absorb a majority of the VIE’s expected losses, receive a majority of the VIE’s expected residual returns, or both. Based upon the Company’s assessments, we have determined we are not the primary beneficiary of and, therefore, are not required to consolidate any VIEs. |
New Accounting Standards
New Accounting Standards | 9 Months Ended |
Sep. 30, 2015 | |
New Accounting Standards [Abstract] | |
New Accounting Standards | 2. New Accounting Standards Adoption of New Accounting Standards In January 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-04, “ Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40). ” ASU 2014-04 provides new guidance for creditors o f consumer mortgage loans, and was effective January 1, 2015. The guidance clarifies when physical possession of a property underlying a consumer mortgage loan transfers to the creditor, and therefore when a loan receivable should be derecognized and the real estate property underlying the loan should be recognized. The adoption of this new guidance in the first quarter of 2015 did not have an impact on the Company’s financial statements or earnings per common share (EPS) as the Company’s practice for recognizing foreclosed real estate was already consistent with the guidance . In August 2015, the FASB issued ASU 2015-15, “Interest – Imputation of Interest (Subtopic 835-30).” Pursuant to the Securities and Exchange Commission ( SEC ) Staff Announcement at the June 18, 2015 Emerging Issues Task Force meeting, ASU 2015-15 provides clarification to ASU 2015-03 (discussed below) of SEC Staff views on the presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements. The new guidance permits deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of a line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line of credit. The adoption of this new guidance in the third quarter of 2015 did not have an impact on the Company’s financial statements or EPS as the Company’s practice for recognizing debt issuance costs on line-of-credit arrangements was already consistent with the guidance. New Accounting Standards Not Yet Adopted In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606), ” which provides new guidance on revenue recognit ion and will become effective January 1, 2018 . The guidance clarifies that revenue from contracts with customers should be recognized in a manner that depicts the timing of the related transfer of goods or performance of services at an amount that reflects the expected consideration . The Company is currently evaluating the impact of this new guidance on its financial statements and EPS. In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810) ,” which amends the analysis a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The new guidance will become effective January 1, 2016, and is applicable to all entities but provides an exception for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. The Company is currently evaluating the impact of this new guidance on its financial statements and EPS. In April 2015, the FASB issued ASU 2015-03 , “Interest – Imputation of Interest (Subtopic 835-30).” The new guidance will require debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. Currently, debt issuance costs are presented as a separate asset. The new guidance , which will become effective January 1, 2016, will not impact the Company’s financial results or EPS as the change only affects the balance sheet presentation of debt issuance costs; recognition and measurement of debt issuance costs will not be affected. In April 2015, the FASB issued ASU 2015-05, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40),” which provides new guidance that clarifies customer’s accounting for fees paid in a cloud computing arrangement. Under the new guidance, if a cloud computing arrangement includes a software license, the customer shall account for the software license element of the arrangement consistent with the acquisition of other software licenses. If the cloud computing arrangement does not include a software license, the customer shall account for the arrangement as a service contract. The guidance will become effective January 1, 2016. The Company does not expect the new guidance will have a significant impact on its financial statements or EPS. |
Securities Available for Sale a
Securities Available for Sale and Securities Held to Maturity | 9 Months Ended |
Sep. 30, 2015 | |
Securities Available for Sale and Securities Held to Maturity [Abstract] | |
Securities Available for Sale and Securities Held to Maturity | 3. Securities Available for Sale and Securities Held to Maturity The amortized cost, gross unrealized gains and losses, and fair value of securities available for sale and securities held to maturity are as follows: Gross Gross Amortized Unrealized Unrealized Fair September 30, 2015 Cost Gains Losses Value Securities available for sale: U.S. agency mortgage-backed securities $ $ $ $ Asset-backed securities Corporate debt securities U.S. agency notes U.S. Treasury securities - Certificates of deposit Non-agency commercial mortgage-backed securities - U.S. state and municipal securities - Commercial Paper - - Other securities - - Total securities available for sale $ $ $ $ Securities held to maturity: U.S. agency mortgage-backed securities $ $ $ $ Non-agency commercial mortgage-backed securities U.S. Treasury securities - Total securities held to maturity $ $ $ $ Gross Gross Amortized Unrealized Unrealized Fair December 31, 2014 Cost Gains Losses Value Securities available for sale: Asset-backed securities $ $ $ $ U.S. agency mortgage-backed securities Corporate debt securities U.S. agency notes - U.S. Treasury securities Certificates of deposit - Non-agency commercial mortgage-backed securities - Other securities - - Total securities available for sale $ $ $ $ Securities held to maturity: U.S. agency mortgage-backed securities $ $ $ $ Non-agency commercial mortgage-backed securities Total securities held to maturity $ $ $ $ Schwab Bank pledges securities issued by federal agencies to secure certain trust deposits. The fair value of these pledged securities was $170 million at September 30, 2015 . A summary of securities with unrealized losses, aggregated by category and period of continuous unrealized loss, is as follows: Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2015 Value Losses Value Losses Value Losses Securities available for sale: U.S. agency mortgage-backed securities $ $ $ $ $ $ Asset-backed securities Corporate debt securities U.S. agency notes Certificates of deposit - - Total $ $ $ $ $ $ Securities held to maturity: U.S. agency mortgage-backed securities $ $ $ $ $ $ Non-agency commercial mortgage-backed securities - - Total $ $ $ $ $ $ Total securities with unrealized losses (1) $ $ $ $ $ $ (1) The number of investment positions with unrealized losses totaled 318 for securities available for sale and 67 f or securities held to maturity. Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2014 Value Losses Value Losses Value Losses Securities available for sale: Asset-backed securities $ $ $ $ $ $ U.S. agency mortgage-backed securities Corporate debt securities U.S. agency notes - - U.S. Treasury securities - - Total $ $ $ $ $ $ Securities held to maturity: U.S. agency mortgage-backed securities $ $ $ $ $ $ Non-agency commercial mortgage-backed securities - - Total $ $ $ $ $ $ Total securities with unrealized losses (1) $ $ $ $ $ $ (1) The number of investment positions with unrealized losses totaled 173 for securities available for sale and 111 for securities held to maturity. Management evaluates whether securities available for sale and securities held to maturity are OTTI on a quarterly basis as described in “N ote s – 2. Summary of Significant Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The matu rities of securities available for sale and securities held to maturity are as follows: After 1 year After 5 years Within through through After September 30, 2015 1 year 5 years 10 years 10 years Total Securities available for sale: U.S. agency mortgage-backed securities (1) $ - $ $ $ $ Asset-backed securities - Corporate debt securities - U.S. agency notes - - - U.S. Treasury securities - - Certificates of deposit - - Non-agency commercial mortgage-backed securities (1) - - - U.S. state and municipal securities - - - Commercial paper - - - Other securities - - - Total fair value $ $ $ $ $ Total amortized cost $ $ $ $ $ Securities held to maturity: U.S. agency mortgage-backed securities (1) $ - $ $ $ $ Non-agency commercial mortgage-backed securities (1) - - U.S. Treasury securities - - - Total fair value $ - $ $ $ $ Total amortized cost $ - $ $ $ $ (1) Mortgage-backed securities have been allocated to maturity groupings based on final contractual maturities. Actual maturities will differ from final contractual maturities because borrowers on a certain portion of loans underlying these securities have the right to prepay their obligations. Proceeds and gross realized gains from sales of securities ava ilable for sale are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Proceeds $ $ $ $ Gross realized gains - Gross realized losses - - - |
Bank Loans and Related Allowanc
Bank Loans and Related Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2015 | |
Bank Loans and Related Allowance for Loan Losses [Abstract] | |
Bank Loans and Related Allowance for Loan Losses | 4. Bank Loans and Related Allowance for Loan Losses The composition of bank loans by loan segment is as follows: September 30, December 31, 2015 2014 Residential real estate mortgages $ $ Home equity loans and lines of credit Personal loans secured by securities Other Total bank loans (1) Allowance for loan losses Total bank loans – net $ $ (1) Loans are evaluated for impairment by loan segment. The Company has commitments to extend credit related to unused home equity lines of credit (HELOCs), personal loans secured by securities, and other lines of credit, which totaled $ 7.2 billion and $6.7 billion at September 30, 2015 and December 31, 2014, respectively. All of the personal loans were fully collateralized by securities with fair values in excess of borrowings at September 30, 2015 and December 31, 2014. Schwab Bank provides a co-branded loan origination program for Schwab Bank clients (the Program) with Quicken Loans, Inc. (Quicken Loans ® ). Pursuant to the Program, Quicken Loans originates and services first lien residential real estate mortgage loans (First Mortgages) and HELOCs for Schwab Bank clients. Under the Program, Schwab Bank purchases certain First Mortgages and HELOCs that are originated by Quicken Loans. Schwab Bank purchased First Mortgages of $469 million and $371 million during the third quarters of 2015 and 2014, respectively and $1.5 billion and $989 million during the first nine months of 2015 and 2014, respectively. Schwab Bank purchased HELOCs with commitments of $150 million and $167 million during the third quarters of 2015 and 2014, respectively, and $432 million and $514 million during the first nine months of 2015 and 2014, respectively. Credit Quality Changes in the allowance for loan losses were as follows: Three Months Ended September 30, 2015 September 30, 2014 Residential Home Equity Residential Home Equity Real Estate Loans and Real Estate Loans and Mortgages Lines of Credit Total Mortgages Lines of Credit Total Balance at beginning of period $ $ $ $ $ $ Charge-offs - - - - - - Recoveries - - - - Provision for loan losses - Balance at end of period $ $ $ $ $ $ Nine Months Ended September 30, 2015 September 30, 2014 Residential Home Equity Residential Home Equity Real Estate Loans and Real Estate Loans and Mortgages Lines of Credit Total Mortgages Lines of Credit Total Balance at beginning of period $ $ $ $ $ $ Charge-offs - Recoveries Provision for loan losses Balance at end of period $ $ $ $ $ $ The delinquency and nonaccrual analysis by loan class is as follows: >90 days past Total past due 30-59 days 60-89 days due and other and other Total September 30, 2015 Current past due past due nonaccrual loans nonaccrual loans loans Residential real estate mortgages $ $ $ $ $ $ Home equity loans and lines of credit Personal loans secured by securities - - Other - - - - Total bank loans $ $ $ $ $ $ >90 days past Total past due 30-59 days 60-89 days due and other and other Total December 31, 2014 Current past due past due nonaccrual loans nonaccrual loans loans Residential real estate mortgages $ $ $ $ $ $ Home equity loans and lines of credit Personal loans secured by securities - - - - Other - - Total bank loans $ $ $ $ $ $ There were no loans accruing interest that were contractually 90 days or more past due at September 30, 2015 or December 31, 2014. Nonperforming assets, which include nonaccrual loans and other real estate owned, totaled $36 million and $44 million at September 30, 2015 and December 31, 2014, respectively. Troubled debt restructurings were not material at September 30, 2015 or December 31, 2014. In addition to monitoring delinquency, the Company monitors the credit quality of residential real estate mortgages and HELOCs by stratifying the portfolios by the year of origination, borrower FICO scores at origination (Origination FICO), updated borrower FICO scores (Updated FICO), loan-to-value (LTV) ratios at origination (Origination LTV), and estimated current LTV ratios (Estimated Current LTV), as presented in the following tables. Borrowers’ FICO scores are provided by an independent third-party credit reporting service and were last updated in September 2015. The Origination LTV and Estimated Current LTV ratios for a HELOC include any first lien mortgage outstanding on the same property at the time of the HELOC’s origination. The Estimated Current LTV for each loan is estimated by reference to a home price appreciation index. As of September 30, 2015 and December 31, 2014 , 48% of the Company’s HELOC and First Mortgage portfolio was concentrated in California. These loans have performed in a manner consistent with the portfolio as a whole. Weighted Percent of Loans Average Utilization that are on September 30, 2015 Balance Updated FICO Rate (1) Nonaccrual Status Residential real estate mortgages: Estimated Current LTV < 70% $ N/A % >70% – < 90% N/A % >90% – < 100% N/A % >100% N/A % Total $ N/A % Home equity loans and lines of credit: Estimated Current LTV < 70% $ % % >70% – < 90% % % >90% – < 100% % % >100% % % Total $ % % (1) The Utilization Rate is calculated using the outstanding HELOC balance divided by the associated total line of credit. N/A Not applicable. Residential Home Equity Real Estate Loans and September 30, 2015 Mortgages Lines of Credit Year of origination Pre-2011 $ $ 2011 2012 2013 2014 2015 Total $ $ Origination FICO <620 $ $ - 620 – 679 680 – 739 > 740 Total $ $ Origination LTV < 70% $ $ >70% – < 90% >90% – < 100% Total $ $ Weighted Percent of Loans Average Utilization that are on December 31, 2014 Balance Updated FICO Rate (1) Nonaccrual Status Residential real estate mortgages: Estimated Current LTV < 70% $ N/A % >70% – < 90% N/A % >90% – < 100% N/A % >100% N/A % Total $ N/A % Home equity loans and lines of credit: Estimated Current LTV < 70% $ % % >70% – < 90% % % >90% – < 100% % % >100% % % Total $ % % (1) The Utilization Rate is calculated using the outstanding HELOC balance divided by the associated total line of credit. N/A Not applicable. Residential Home Equity Real Estate Loans and December 31, 2014 Mortgages Lines of Credit Year of origination Pre-2011 $ $ 2011 2012 2013 2014 Total $ $ Origination FICO <620 $ $ - 620 – 679 680 – 739 > 740 Total $ $ Origination LTV < 70% $ $ >70% – < 90% >90% – < 100% Total $ $ |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2015 | |
Borrowings [Abstract] | |
Borrowings | 5. Borrowings Long-term debt, including unamortized debt discounts and premiums, where applicable, consists of the following: September 30, December 31, 2015 2014 Senior Notes $ $ Senior Medium-Term Notes, Series A Finance lease obligation Total long-term debt $ $ On March 10, 2015, CSC issued $625 million aggregate principal amount of Senior Notes that mature in 2018 and $375 million aggregate principal amount of Senior Notes that mature in 2025 . The Senior Notes due 2018 have a fixed interest rate of 1.50% with interest payable semi-annually. The Senior Notes due 2025 have a fixed interest rate of 3.00% with interest payable semi-annually. Annual maturities on long-term debt outstanding at September 30, 2015 are as follows: 2015 $ 2016 2017 2018 2019 Thereafter Total maturities Unamortized discount, net Total long-term debt $ |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 6 . Commitments and Contingencies The Company has clients that sell (i.e., write) listed option contracts that are cleared by the Options Clearing Corporation – a clearing house that establishes margin requirements on these transactions. The Company partially satisfies the margin requirements by arranging unsecured standby letter of credit agreements (LOCs), in favor of the Options Clearing Corporation, which are issued by multiple banks. At September 30, 2015 , the aggregate face amount of these LOCs totaled $280 million. There were no funds drawn under any of these LOCs at September 30, 2015 . In connection with its securities lending activities, the Company is required to provide collateral to certain brokerage clients. The Company satisfies the collateral requirements by providing cash as collateral . The Company also provides guarantees to securities clearing houses and exchanges under standard membership agreements, which require members to guarantee the performance of other members. Under the agreements, if another member becomes unable to satisfy its obligations to the clearing houses and exchanges, other members would be required to meet shortfalls. The Company’s liability under these arrangements is not quantifiable and may exceed the cash and securities it has posted as collateral. However, the potential requirement for the Company to make payments under these arrangements is remote. Accordingly, no liability has been recognized for these guarantees. The Company has recorded a liability of $63 million for unfunded commitments related to investments in qualified affordable housing projects at September 30, 2015 , which is included in accrued expenses and other liabilities on the balance sheet. These commitments are expected to be funded during the years from 2015 to 2020 . The Company also recorded a corresponding asset for the funded and unfunded investments in qualified affordable housing projects of $79 million at September 30, 2015 , which is included in other assets on the balance sheet. Legal contingencies: The Company is subject to claims and lawsuits in the ordinary course of business, including arbitrations, class actions and other litigation, some of which include claims for substantial or unspecified damages. The Company is also the subject of inquiries, investigations, and proceedings by regulatory and other governmental agencies. The Company believes it has strong defenses in all significant matters currently pending and is contesting liability and any damages claimed. Nevertheless, some of these matters may result in adverse judgments or awards, including penalties, injunctions or other relief, and the Company may also determine to settle a matter because of the uncertainty and risks of litigation. Described below are certain matters in which there is a reasonable possibility that a material loss could be incurred or where the matter may otherwise be of significant interest to stockholders. Unless otherwise noted, the Company is unable to provide a reasonable estimate of any potential liability given the stage of proceedings in the matter. With respect to all other pending matters, based on current information and consultation with counsel, it does not appear reasonably possible that the outcome of any such matter would be material to the financial condition, operating results or cash flows of the Company. However, predicting the outcome of a litigation or regulatory matter is inherently difficult, requiring significant judgment and evaluation of various factors, including the procedural status of the matter and any recent developments; prior experience and the experience of others in similar cases; available defenses, including potential opportunities to dispose of a case on the merits or procedural grounds before trial (e.g., motions to dismiss or for summary judgment); the progress of fact discovery; the opinions of counsel and experts regarding potential damages; potential opportunities for settlement and the status of any settlement discussions; and potential insurance coverage and indemnification. It may not be possible to reasonably estimate potential liability, if any, or a range of potential liability until the matter is closer to resolution – pending, for example, further proceedings, the outcome of key motions or appeals, or discussions among the parties. Numerous issues may have to be developed, such as discovery of important factual matters and determination of threshold legal issues, which may include novel or unsettled questions of law. Reserves are established or adjusted or further disclosure and estimates of potential loss are provided as the matter progresses and more information becomes available. Total Bond Market Fund Litigation : On August 28, 2008, a class action lawsuit was filed in the U.S. District Court for the Northern District of California on behalf of investors in the Schwab Total Bond Market Fund™. The lawsuit, which allege d violations of state law and federal securities law in connection with the fund’s investment policy, name d CSIM, Schwab Investments (registrant and issuer of the fund’s shares) and certain current and former fund trustees as defendants. Allegations include that the fund improperly deviated from its stated investment objectives by investing in collateralized mortgage obligations (CMOs) and investing more than 25 % of fund assets in CMOs and mortgage-backed securities without obtaining a shareholder vote. Plaintiff seek s unspecified compensatory and rescission damages, unspecified equitable and injunctive relief, costs and attorneys’ fees. Plaintiff ’s federal securities law claim and certain of plaintiff ’s state law claims were dismissed. On August 8, 2011, the court dismissed plaintiff ’s remaining claims with prejudice. Plaintiff appealed to the Ninth Circuit, which issued a ruling on March 9, 2015 reversing the district court’s dismissal of the case and remanding the case for further proceedings . A petition by defendants for U.S. Supreme Court review was denied on October 6, 2015. In the interim, defendants filed a fourth amended complaint on June 25, 2015. Defendants moved to dismiss and on October 6, 2015, the court dismissed with prejudice plaintiff’s contractual claims, but declined to dismiss certain of the claims for fiduciary breach, which remain pending. Other Regulatory Matters : On April 16, 2012, optionsXpress, Inc. was charged by the SEC in an administrative proceeding alleging violations of the firm’s close-out obligations under Regulation SHO (short sale delivery rules) in connection with certain customer trading activity. Following trial, in a decision issued June 7, 2013, the judge held that the firm had violated Regulation SHO and aided and abetted fraudulent trading activity by its customer, and ordered the firm and the customer to pay disgorgement and penalties in an amount which would not be material. The Company continues to dispute the allegations and is appealing the decision . |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
Offsetting Assets and Liabilities [Abstract] | |
Offsetting Assets and Liabilities | 7. Offsetting Assets and Liabilities Resale and repurchase agreements: Schwab enters into collateralized resale agreements principally with other broker-dealers, which could result in losses in the event the counterparty fails to purchase the securities held as collateral for the cash advanced and the fair value of the securities declines. To mitigate this risk, Schwab requires that the counterparty deliver securities to a custodian, to be held as collateral, with a fair value in excess of the resale price. Schwab also sets standards for the credit quality of the counterparty, monitors the fair value of the underlying securities as compared to the related receivable, including accrued interest, and requires additional collateral where deemed appropriate. The fair value of collateral received in connection with resale agreements that are available to be repledged or sold was $8.0 billion a t September 30, 2015 and $10.4 billion at December 31, 2014. Schwab utilizes the collateral provided under these resale agreements to meet obligations under broker-dealer client protection rules, which place limitations on its ability to access such segregated securities. For Schwab to repledge or sell this collateral, it would be required to deposit cash and/or securities of an equal amount into its segregated reserve bank accounts in order to meet its segregated cash and investment requirement. The Company’s resale agreements are not subject to master netting arrangements. Securities lending: The Company loans client securities temporarily to other brokers in connection with its securities lending activities and receives cash as collateral for the securities loaned. Increases in security prices may cause the fair value of the securities loaned to exceed the amount of cash received as collateral. In the event the counterparty to these transactions does not return the loaned securities or provide additional cash collateral, the Company may be exposed to the risk of acquiring the securities at prevailing market prices in order to satisfy its client obligations. The Company mitigates this risk by requiring credit approvals for counterparties, monitoring the fair value of securities loaned, and requiring additional cash as collateral when necessary. The fair value of client securities pledged in securities lending transactions to other broker-dealers was $1.8 billion at September 30, 2015 an d $1.3 billion at December 31, 2014. The Company has also pledged a portion of its securities owned in connection with securities lending transactions to other broker-dealers. Additionally, the Company borrows securities from other broker-dealers to fulfill short sales by clients and delivers cash to the lender in exchange for the securities. The fair value of these borrowed securities was $33 million at September 30, 2015 an d $88 million at December 31, 2014. All of the Company’s securities lending transactions are subject to enforceable master netting arrangements with other broker-dealers. However, the Company does not net securities lending transactions and therefore, the Company’s securities loaned and securities borrowed are presented gross in the condensed consolidated balance sheets. The following table presents information about the Company’s resale agreements and securities lending activity to enable the users of the Company’s financial statements to evaluate the potential effect of rights of setoff between these recognized assets and recognized liabilities at September 30, 2015 and December 31, 2014. Gross Amounts Net Amounts Gross Amounts Not Offset in the Offset in the Presented in the Condensed Consolidated Gross Condensed Condensed Balance Sheet Assets/ Consolidated Consolidated Counterparty Net Liabilities Balance Sheet Balance Sheet Offsetting Collateral Amount September 30, 2015 Assets: Resale agreements (1) $ $ - $ $ - $ (2) $ - Securities borrowed (3) - - Total $ $ - $ $ $ $ - Liabilities: Securities loaned (4,5) $ $ - $ $ $ $ Total $ $ - $ $ $ $ December 31, 2014 Assets: Resale agreements (1) $ $ - $ $ - $ (2) $ - Securities borrowed (3) - Total $ $ - $ $ $ $ Liabilities: Securities loaned (4,5) $ $ - $ $ $ $ Total $ $ - $ $ $ $ (1) Included in cash and investments segregated and on deposit for regulatory purposes in the Company’s condensed consolidated balance sheets. (2) Actual collateral was greater than 102% of the related as sets. (3) Included in receivables from brokers, dealers, and clearing organizations in the Company’s condensed consolidated balance sheets. (4) Included in payables to brokers, dealers, and clearing organizations in the Company’s condensed consolidated balance sheets. (5) Securities loaned are predominantly comprised of equity securities with overnight and continuous remaining contractual maturities . |
Fair Values of Assets and Liabi
Fair Values of Assets and Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
Fair Values of Assets and Liabilities [Abstract] | |
Fair Values of Assets and Liabilities | 8. Fair Values of Assets and Liabilities Assets and liabilities recorded at fair value The Company uses the market and income approaches to determine the fair value of assets and liabilities. When available, the Company uses quoted prices in active markets to measure the fair value of assets and liabilities. When utilizing market data and bid-ask spread, the Company uses the price within the bid-ask spread that best represents fair value. When quoted prices do not exist, the Company uses prices obtained from independent third-party pricing services to measure the fair value of investment assets. The Company generally obtains prices from at least three independent pricing sources for assets recorded at fair value and may obtain up to five prices on assets with higher risk of limited observable information, such as non-agency residential mortgage-backed securities. The Company’s primary independent pricing service provides prices based on observable trades and discounted cash flows that incorporate observable information such as yields for similar types of securities (a benchmark interest rate plus observable spreads) and weighted-average maturity for the same or similar “to-be-issued” securities. The Company compares the prices obtained from its primary independent pricing service to the prices obtained from the additional independent pricing services to determine if the price obtained from the primary independent pricing service is reasonable. The Company does not adjust the prices received from independent third-party pricing services unless such prices are inconsistent with the definition of fair value and result in a material difference in the recorded amounts. Financial instruments not recorded at fair value Descriptions of the valuation methodologies and assumptions used to estimate the fair value of financial instruments not recorded at fair value are described below. The Company’s financial instruments not recorded at fair value but for which fair value can be approximated and disclosed include: · Cash and cash equivalents are short-term in nature and accordingly are recorded at amounts that approximate fair value. · Cash and investments segregated and on deposit for regulatory purposes include cash and securities purchased under resale agreements. Securities purchased under resale agreements are short-term in nature and are backed by collateral that both exceeds the carrying value of the resale agreement and is highly liquid in nature. Accordingly, the carrying value approximates fair value. · Receivables from/payables to brokers, dealers, and clearing organizations are recorded at contractual amounts and historically have been settled at those values and are short-term in nature, and therefore approximate fair value. · Receivables from/payables to brokerage clients — net are recorded at contractual amounts and historically have been settled at those values and are short-term in nature, and therefore approximate fair value. · Securities held to maturity – The fair values of securities held to maturity are obtained using an independent third-party pricing service similar to investment assets recorded at fair value as discussed above. · Bank loans – The fair values of the Company’s residential real estate mortgages and HELOCs are estimated based on prices of mortgage-backed securities collateralized by similar types of loans. Personal loans secured by securities are short-term, variable interest rate loans; accordingly, the carrying values of these loans approximate their fair values. · Financial instruments included in other assets primarily consist of cost method investments and Federal Home Loan Bank (FHLB) stock, whose carrying values approximate their fair values. FHLB stock is recorded at par, which approximates fair value. · Bank deposits have no stated maturity and are recorded at the amount payable on demand as of the balance sheet date. The Company considers the carrying value of these deposits to approximate their fair values. · Financial instruments included in accrued expenses and other liabilities consist of commercial paper, drafts payable and certain amounts due under contractual obligations which are short-term in nature and accordingly are recorded at amounts that approximate fair value. · Long-term debt – Except for the finance lease obligation, the fair values of long-term debt are estimated using indicative, non-binding quotes from independent brokers. The Company validates indicative prices for its debt through comparison to other independent non-binding quotes. The finance lease obligation is recorded at carrying value, which approximates fair value. For a description of the fair value hierarchy, see “Notes – 2. Summary of Significant Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. There were no significant changes in these policies and methodologies during the first nine months of 2015. The Company did not transfer any assets or liabilities between Level 1, Level 2, or Level 3 during the nine months ended September 30, 2015 , or the year ended December 31, 2014. In addition, the Company did not adjust prices received from the primary independent third-party pricing service at September 30, 2015 or December 31, 2014. Financial Instruments Recorded at Fair Value The following tables present the fair value hierarchy for assets measured at fair value. Liabilities recorded at fair value were not material, and therefore are not included in the following tables: Quoted Prices in Active Markets Significant Significant for Identical Other Observable Unobservable Assets Inputs Inputs Balance at September 30, 2015 (Level 1) (Level 2) (Level 3) Fair Value Cash equivalents: Money market funds $ $ - $ - $ Commercial paper - - Total cash equivalents - Investments segregated and on deposit for regulatory purposes: Certificates of deposit - - U.S. Government securities - - Total investments segregated and on deposit for regulatory purposes - - Other securities owned: Schwab Funds ® money market funds - - Equity and bond mutual funds - - State and municipal debt obligations - - Equity, U.S. Government and corporate debt, and other securities - Total other securities owned - Securities available for sale: U.S. agency mortgage-backed securities - - Asset-backed securities - - Corporate debt securities - - U.S. agency notes - - U.S. Treasury securities - - Certificates of deposit - - Non-agency commercial mortgage-backed securities - - U.S. state and municipal securities - - Commercial paper - - Other securities - - Total securities available for sale - - Total $ $ $ - $ Quoted Prices in Active Markets Significant Significant for Identical Other Observable Unobservable Assets Inputs Inputs Balance at December 31, 2014 (Level 1) (Level 2) (Level 3) Fair Value Cash equivalents: Money market funds $ $ - $ - $ Commercial paper - - Total cash equivalents - Investments segregated and on deposit for regulatory purposes: Certificates of deposit - - U.S. Government securities - - Total investments segregated and on deposit for regulatory purposes - - Other securities owned: Schwab Funds ® money market funds - - Equity and bond mutual funds - - State and municipal debt obligations - - Equity, U.S. Government and corporate debt, and other securities - Total other securities owned - Securities available for sale: Asset-backed securities - - U.S. agency mortgage-backed securities - - Corporate debt securities - - U.S. agency notes - - U.S. Treasury securities - - Certificates of deposit - - Non-agency commercial mortgage-backed securities - - Other securities - - Total securities available for sale - - Total $ $ $ - $ Financial Instruments Not Recorded at Fair Value The following tables present the fair value hierarchy for financial instruments not recorded at fair value: Quoted Prices in Active Markets Significant Significant for Identical Other Observable Unobservable Carrying Assets Inputs Inputs Balance at September 30, 2015 Amount (Level 1) (Level 2) (Level 3) Fair Value Assets: Cash and cash equivalents $ $ - $ $ - $ Cash and investments segregated and on deposit for regulatory purposes - - Receivables from brokers, dealers, and clearing organizations - - Receivables from brokerage clients – net - - Securities held to maturity: U.S. agency mortgage-backed securities - - Non-agency commercial mortgage-backed securities - - U.S. Treasury securities - - Total securities held to maturity - - Bank loans: (1) Residential real estate mortgages - - Home equity loans and lines of credit - - Personal loans secured by securities - - Other - - Total bank loans - - Other assets - - Total $ $ - $ $ - $ Liabilities: Bank deposits $ $ - $ $ - $ Payables to brokers, dealers, and clearing organizations - - Payables to brokerage clients - - Accrued expenses and other liabilities - - Long-term debt - - Total $ $ - $ $ - $ (1) The carrying value of bank loans excludes the allowance for loan losses of $31 million at September 30, 2015. Quoted Prices in Active Markets Significant Significant for Identical Other Observable Unobservable Carrying Assets Inputs Inputs Balance at December 31, 2014 Amount (Level 1) (Level 2) (Level 3) Fair Value Assets: Cash and cash equivalents $ $ - $ $ - $ Cash and investments segregated and on deposit for regulatory purposes - - Receivables from brokers, dealers, and clearing organizations - - Receivables from brokerage clients – net - - Securities held to maturity: U.S. agency mortgage-backed securities - - Non-agency commercial mortgage-backed securities - - Total securities held to maturity - - Bank loans: (1) Residential real estate mortgages - - Home equity loans and lines of credit - - Personal loans secured by securities - - Other - - Total bank loans - - Other assets - - Total $ $ - $ $ - $ Liabilities: Bank deposits $ $ - $ $ - $ Payables to brokers, dealers, and clearing organizations - - Payables to brokerage clients - - Accrued expenses and other liabilities - - Long-term debt - - Total $ $ - $ $ - $ (1) The carrying value of bank loans excludes the allowance for loan losses of $42 million at December 31, 2014. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | 9. Stockholders’ Equity See “Notes – 17. Stockholders’ Equity” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. There have been no significant changes to the Company’s stockholder’s equity with the exception of the issuance disclosed below. The Company did not issue any shares of common stock during the nine months ended September 30, 2015, or the year ended December 31, 2014. On August 3, 2015, the Company issued and sold 24 million depositary shares, each representing a 1/40 th ownership interest in a share of 6.00% non-cumulative perpetual preferred stock, Series C, $0.01 par value, with a liquidation preference of $1,000 per share (equivalent to $25 per depositary share) (Series C Preferred Stock). The Series C Preferred Stock has a fixed dividend rate of 6.00% . Net proceeds received from the sale were $581 million and are being used to support balance sheet growth, including the migration of certain client balances from sweep money market funds into Schwab Bank. Including the Series C issuance discussed above, the Company’s preferred stock issued and outstanding is as follows: September 30, 2015 December 31, 2014 Shares Shares Issued and Liquidation Issued and Liquidation Outstanding Preference Liquidation Carrying Outstanding Preference Liquidation Carrying (In thousands) Per Share Preference Value (In thousands) Per Share Preference Value Series A $ $ $ $ $ $ Series B Series C - - - - Total Preferred Stock $ $ $ $ |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2015 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | 10. Accumulated Other Comprehensive Income Accumulated other comprehensive income represents cumulative gains and losses that are not reflected in earnings. The components of other comprehensive income are as follows: Three Months Ended September 30, 2015 2014 Before Tax Net of Before Tax Net of Tax Effect Tax Tax Effect Tax Change in net unrealized gain on securities available for sale: Net unrealized (loss) gain $ $ $ $ $ $ Reclassification of impairment charges included in net impairment losses on securities - - - - Other reclassifications included in other revenue - - - Change in net unrealized (loss) gain on securities available for sale Other comprehensive (loss) income $ $ $ $ $ $ Nine Months Ended September 30, 2015 2014 Before Tax Net of Before Tax Net of Tax Effect Tax Tax Effect Tax Change in net unrealized gain on securities available for sale: Net unrealized (loss) gain $ $ $ $ $ $ Reclassification of impairment charges included in net impairment losses on securities - - - - Other reclassifications included in other revenue - - - Change in net unrealized (loss) gain on securities available for sale Other comprehensive (loss) income $ $ $ $ $ $ Accumulated other comprehensive income balances are as follows: Total Accumulated Other Comprehensive Income Balance at December 31, 2013 $ Net unrealized gain on securities available for sale Balance at September 30, 2014 $ Balance at December 31, 2014 $ Net unrealized loss on securities available for sale Balance at September 30, 2015 $ |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Common Share [Abstract] | |
Earnings Per Common Share | 11. Earnings Per Common Share Basic EPS is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the period. The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if dilutive potential common shares had been issued. Dilutive potential common shares include , if dilutive, the effect of outstanding stock options and unvested restricted stock awards and units. EPS under the basic and diluted computations is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Net income $ $ $ $ Preferred stock dividends and other (1) Net income available to common stockholders $ $ $ $ Weighted-average common shares outstanding — basic Common stock equivalent shares related to stock incentive plans Weighted-average common shares outstanding — diluted (2) Basic EPS $ .28 $ .24 $ .75 $ .71 Diluted EPS $ .28 $ .24 $ .74 $ .70 (1) Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested restricted stock units. (2) Antidilutive stock options and restricted stock awards excluded from the calculation of diluted EPS totaled 14 million and 12 million shares for the third quarters of 2015 and 2014, respectively, and 16 million and 18 million shares for the first nine months of 2015 and 2014, respectively. |
Regulatory Requirements
Regulatory Requirements | 9 Months Ended |
Sep. 30, 2015 | |
Regulatory Requirements [Abstract] | |
Regulatory Requirements | 12 . Regulatory Requirements CSC is a savings and loan holding company and Schwab Bank, CSC’s depository institution subsidiary, is a federal savings bank. CSC is subject to supervision and regulation by the Board of Governors of the Federal Reserve System (Federal Reserve). Schwab Bank is subject to supervision and regulation by the Office of the Comptroller of the Currency (OCC), as its primary regulator, the Federal Deposit Insurance Corporation, as its deposit insurer, and the Consumer Financial Protection Bureau. CSC is required to serve as a source of strength for Schwab Bank. Prior to January 1, 2015, CSC, as a savings and loan holding company, was not subject to certain statutory capital requirements. Beginning on January 1, 2015, CSC became subject to new capital requirements set by the Federal Reserve . Schwab Bank is subject to regulation and supervision and to various requirements and restrictions under federal and state laws, including regulatory capital guidelines. Among other things, these requirements also restrict and govern the terms of affiliate transactions, such as extensions of credit and repayment of loans between Schwab Bank and CSC or CSC’s other subsidiaries. In addition, Schwab Bank is required to provide notice to and may be required to obtain approval of the OCC and the Federal Reserve to declare dividends to CSC. The federal banking agencies have broad powers to enforce these regulations, including the power to terminate deposit insurance, impose substantial fines and other civil and criminal penalties, and appoint a conservator or receiver. Under the Federal Deposit Insurance Act, Schwab Bank could be subject to restrictive actions if it were to fall within one of the lowest three of five capital categories. CSC and Schwab Bank are required to maintain minimum capital levels as specified in federal banking laws and regulations. Failure to meet the minimum levels could result in certain mandatory and possibly additional discretionary actions by the regulators that, if undertaken, could have a direct material effect on CSC and Schwab Bank. At September 30, 2015 , CSC and Schwab Bank met the capital level requirements. The regulatory capital and ratios for CSC and Schwab Bank are as follows: Minimum to be Minimum Capital Actual Well Capitalized Requirement September 30, 2015 Amount Ratio Amount Ratio Amount Ratio CSC (1) Common Equity Tier 1 Risk-Based Capital $ % N/A $ % Tier 1 Risk-Based Capital $ % N/A $ % Total Risk-Based Capital $ % N/A $ % Tier 1 Leverage $ % N/A $ % Schwab Bank Common Equity Tier 1 Risk-Based Capital $ % $ % $ % Tier 1 Risk-Based Capital $ % $ % $ % Total Risk-Based Capital $ % $ % $ % Tier 1 Leverage $ % $ % $ % (1) The ratios above reflect the impact, as of September 30, 2015, of a change in approach related to the risk-weighting of the majority of the Company’s margin loan portfolio in accordance with the Basel III rules which became effective in the first quarter of this year. N/A Not applicable. Based on its regulatory capital ratios at September 30, 2015 , Schwab Bank is considered well capitalized (the highest category) pursuant to banking regulatory guidelines. There are no conditions or events since September 30, 2015 that management believes have changed Schwab Bank’s capital category. CSC’s principal U.S. broker-dealers are Schwab and optionsXpress, Inc. Schwab and optionsXpress, Inc. are both subject to Rule 15c3-1 under the Securities Exchange Act of 1934 (the Uniform Net Capital Rule). Schwab and optionsXpress, Inc. compute net capital under the alternative method permitted by the Uniform Net Capital Rule. This method requires the maintenance of minimum net capital, as defined, of the greater of 2% of aggregate debit balances arising from client transactions or a minimum dollar requirement ($ 250,000 ), which is based on the type of business conducted by the broker-dealer. Under the alternative method, a broker-dealer may not repay subordinated borrowings, pay cash dividends, or make any unsecured advances or loans to its parent company or employees if such payment would result in a net capital amount of less than 5 % of aggregate debit balances or less than 120 % of its minimum dollar requirement. optionsXpress, Inc. is also subject to Commodity Futures Trading Commission Regulation 1.17 (Reg. 1.17) under the Commodity Exchange Act, which also requires the maintenance of minimum net capital. optionsXpress, Inc., as a futures commission merchant, is required to maintain minimum net capital equal to the greater of its net capital requirement under Reg. 1.17 ($ 1 million), or the sum of 8% of the total risk margin requirements for all positions carried in client accounts and 8 % of the total risk margin requirements for all positions carried in non-client accounts (as defined in Reg. 1.17). Net capital and net capital requirements for Schwab and optionsXpress, Inc. are as follows: Net Capital Net Capital % of Minimum 2% of in Excess of in Excess of 5% Aggregate Net Capital Aggregate Required of Aggregate September 30, 2015 Net Capital Debit Balances Required Debit Balances Net Capital Debit Balances Schwab $ % $ $ $ $ optionsXpress, Inc. $ % $ $ $ $ |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Information [Abstract] | |
Segment Information | 13 . Segment Information The Company’s two reportable segments are Investor Services and Advisor Services. The Company structures its operating segments according to its clients and the services provided to those clients. The Investor Services segment provides retail brokerage and banking services to individual investors, retirement plan services, and corporate brokerage services. The Advisor Services segment provides custodial, trading, and support services to independent investment advisors, and retirement business services to independent retirement plan advisors and recordkeepers whose plan assets are held at Schwab Bank. Revenues and expenses are allocated to the Company’s two segments based on which segment services the client. The Company evaluates the performance of its segments on a pre-tax basis, excluding extraordinary or significant non-recurring items and results of discontinued operations. Segment assets and liabilities are not used for evaluating segment performance or in deciding how to allocate resources to segments. There are no revenues from transactions between the segments. Financial information for the Company’s reportable segments is presented in the following tables : Investor Services Advisor Services Unallocated Total Three Months Ended September 30, 2015 2014 2015 2014 2015 2014 2015 2014 Net Revenues: Asset management and administration fees $ $ $ $ $ - $ - $ $ Net interest revenue - - Trading revenue - - Other - Provision for loan losses - - - Net impairment losses on securities - - - - - - Total net revenues - Expenses Excluding Interest - Income before taxes on income $ $ $ $ $ - $ $ $ Investor Services Advisor Services Unallocated Total Nine Months Ended September 30, 2015 2014 2015 2014 2015 2014 2015 2014 Net Revenues: Asset management and administration fees $ $ $ $ $ - $ - $ $ Net interest revenue - - Trading revenue - - Other - Provision for loan losses - - Net impairment losses on securities - - - - - - Total net revenues - Expenses Excluding Interest - Income before taxes on income $ $ $ $ $ - $ $ $ |
Securities Available for Sale21
Securities Available for Sale and Securities Held to Maturity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Securities Available for Sale and Securities Held to Maturity [Abstract] | |
Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Securities Available for Sale and Securities Held to Maturity | Gross Gross Amortized Unrealized Unrealized Fair September 30, 2015 Cost Gains Losses Value Securities available for sale: U.S. agency mortgage-backed securities $ $ $ $ Asset-backed securities Corporate debt securities U.S. agency notes U.S. Treasury securities - Certificates of deposit Non-agency commercial mortgage-backed securities - U.S. state and municipal securities - Commercial Paper - - Other securities - - Total securities available for sale $ $ $ $ Securities held to maturity: U.S. agency mortgage-backed securities $ $ $ $ Non-agency commercial mortgage-backed securities U.S. Treasury securities - Total securities held to maturity $ $ $ $ Gross Gross Amortized Unrealized Unrealized Fair December 31, 2014 Cost Gains Losses Value Securities available for sale: Asset-backed securities $ $ $ $ U.S. agency mortgage-backed securities Corporate debt securities U.S. agency notes - U.S. Treasury securities Certificates of deposit - Non-agency commercial mortgage-backed securities - Other securities - - Total securities available for sale $ $ $ $ Securities held to maturity: U.S. agency mortgage-backed securities $ $ $ $ Non-agency commercial mortgage-backed securities Total securities held to maturity $ $ $ $ |
Securities with Unrealized Losses, Aggregated by Category and Period of Continuous Unrealized Loss | Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2015 Value Losses Value Losses Value Losses Securities available for sale: U.S. agency mortgage-backed securities $ $ $ $ $ $ Asset-backed securities Corporate debt securities U.S. agency notes Certificates of deposit - - Total $ $ $ $ $ $ Securities held to maturity: U.S. agency mortgage-backed securities $ $ $ $ $ $ Non-agency commercial mortgage-backed securities - - Total $ $ $ $ $ $ Total securities with unrealized losses (1) $ $ $ $ $ $ (1) The number of investment positions with unrealized losses totaled 318 for securities available for sale and 67 f or securities held to maturity. Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2014 Value Losses Value Losses Value Losses Securities available for sale: Asset-backed securities $ $ $ $ $ $ U.S. agency mortgage-backed securities Corporate debt securities U.S. agency notes - - U.S. Treasury securities - - Total $ $ $ $ $ $ Securities held to maturity: U.S. agency mortgage-backed securities $ $ $ $ $ $ Non-agency commercial mortgage-backed securities - - Total $ $ $ $ $ $ Total securities with unrealized losses (1) $ $ $ $ $ $ (1) The number of investment positions with unrealized losses totaled 173 for securities available for sale and 111 for securities held to maturity. |
Maturities of Securities Available for Sale and Securities Held to Maturity | After 1 year After 5 years Within through through After September 30, 2015 1 year 5 years 10 years 10 years Total Securities available for sale: U.S. agency mortgage-backed securities (1) $ - $ $ $ $ Asset-backed securities - Corporate debt securities - U.S. agency notes - - - U.S. Treasury securities - - Certificates of deposit - - Non-agency commercial mortgage-backed securities (1) - - - U.S. state and municipal securities - - - Commercial paper - - - Other securities - - - Total fair value $ $ $ $ $ Total amortized cost $ $ $ $ $ Securities held to maturity: U.S. agency mortgage-backed securities (1) $ - $ $ $ $ Non-agency commercial mortgage-backed securities (1) - - U.S. Treasury securities - - - Total fair value $ - $ $ $ $ Total amortized cost $ - $ $ $ $ (1) Mortgage-backed securities have been allocated to maturity groupings based on final contractual maturities. Actual maturities will differ from final contractual maturities because borrowers on a certain portion of loans underlying these securities have the right to prepay their obligations. |
Proceeds and Gross Realized Gains and Losses from Sales of Securities Available for Sale | Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Proceeds $ $ $ $ Gross realized gains - Gross realized losses - - - |
Bank Loans and Related Allowa22
Bank Loans and Related Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Bank Loans and Related Allowance for Loan Losses [Abstract] | |
Composition of Bank Loans by Loan Segment | September 30, December 31, 2015 2014 Residential real estate mortgages $ $ Home equity loans and lines of credit Personal loans secured by securities Other Total bank loans (1) Allowance for loan losses Total bank loans – net $ $ (1) Loans are evaluated for impairment by loan segment. |
Changes in Allowance for Loan Losses | Three Months Ended September 30, 2015 September 30, 2014 Residential Home Equity Residential Home Equity Real Estate Loans and Real Estate Loans and Mortgages Lines of Credit Total Mortgages Lines of Credit Total Balance at beginning of period $ $ $ $ $ $ Charge-offs - - - - - - Recoveries - - - - Provision for loan losses - Balance at end of period $ $ $ $ $ $ Nine Months Ended September 30, 2015 September 30, 2014 Residential Home Equity Residential Home Equity Real Estate Loans and Real Estate Loans and Mortgages Lines of Credit Total Mortgages Lines of Credit Total Balance at beginning of period $ $ $ $ $ $ Charge-offs - Recoveries Provision for loan losses Balance at end of period $ $ $ $ $ $ |
Delinquency Analysis by Loan Class | >90 days past Total past due 30-59 days 60-89 days due and other and other Total September 30, 2015 Current past due past due nonaccrual loans nonaccrual loans loans Residential real estate mortgages $ $ $ $ $ $ Home equity loans and lines of credit Personal loans secured by securities - - Other - - - - Total bank loans $ $ $ $ $ $ >90 days past Total past due 30-59 days 60-89 days due and other and other Total December 31, 2014 Current past due past due nonaccrual loans nonaccrual loans loans Residential real estate mortgages $ $ $ $ $ $ Home equity loans and lines of credit Personal loans secured by securities - - - - Other - - Total bank loans $ $ $ $ $ $ |
Credit Quality of Residential Real Estate Mortgages and HELOCs by Reviewing FICO Scores at Origination, Current FICO Scores, Loan-To-Value Ratio | Weighted Percent of Loans Average Utilization that are on September 30, 2015 Balance Updated FICO Rate (1) Nonaccrual Status Residential real estate mortgages: Estimated Current LTV < 70% $ N/A % >70% – < 90% N/A % >90% – < 100% N/A % >100% N/A % Total $ N/A % Home equity loans and lines of credit: Estimated Current LTV < 70% $ % % >70% – < 90% % % >90% – < 100% % % >100% % % Total $ % % (1) The Utilization Rate is calculated using the outstanding HELOC balance divided by the associated total line of credit. N/A Not applicable. Residential Home Equity Real Estate Loans and September 30, 2015 Mortgages Lines of Credit Year of origination Pre-2011 $ $ 2011 2012 2013 2014 2015 Total $ $ Origination FICO <620 $ $ - 620 – 679 680 – 739 > 740 Total $ $ Origination LTV < 70% $ $ >70% – < 90% >90% – < 100% Total $ $ Weighted Percent of Loans Average Utilization that are on December 31, 2014 Balance Updated FICO Rate (1) Nonaccrual Status Residential real estate mortgages: Estimated Current LTV < 70% $ N/A % >70% – < 90% N/A % >90% – < 100% N/A % >100% N/A % Total $ N/A % Home equity loans and lines of credit: Estimated Current LTV < 70% $ % % >70% – < 90% % % >90% – < 100% % % >100% % % Total $ % % (1) The Utilization Rate is calculated using the outstanding HELOC balance divided by the associated total line of credit. N/A Not applicable. Residential Home Equity Real Estate Loans and December 31, 2014 Mortgages Lines of Credit Year of origination Pre-2011 $ $ 2011 2012 2013 2014 Total $ $ Origination FICO <620 $ $ - 620 – 679 680 – 739 > 740 Total $ $ Origination LTV < 70% $ $ >70% – < 90% >90% – < 100% Total $ $ |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Borrowings [Abstract] | |
Long-term Debt Including Unamortized Debt Discounts and Premiums | September 30, December 31, 2015 2014 Senior Notes $ $ Senior Medium-Term Notes, Series A Finance lease obligation Total long-term debt $ $ |
Annual Maturities on Long-term Debt Outstanding | 2015 $ 2016 2017 2018 2019 Thereafter Total maturities Unamortized discount, net Total long-term debt $ |
Offsetting Assets and Liabili24
Offsetting Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Offsetting Assets and Liabilities [Abstract] | |
Offsetting Assets and Liabilities | Gross Amounts Net Amounts Gross Amounts Not Offset in the Offset in the Presented in the Condensed Consolidated Gross Condensed Condensed Balance Sheet Assets/ Consolidated Consolidated Counterparty Net Liabilities Balance Sheet Balance Sheet Offsetting Collateral Amount September 30, 2015 Assets: Resale agreements (1) $ $ - $ $ - $ (2) $ - Securities borrowed (3) - - Total $ $ - $ $ $ $ - Liabilities: Securities loaned (4,5) $ $ - $ $ $ $ Total $ $ - $ $ $ $ December 31, 2014 Assets: Resale agreements (1) $ $ - $ $ - $ (2) $ - Securities borrowed (3) - Total $ $ - $ $ $ $ Liabilities: Securities loaned (4,5) $ $ - $ $ $ $ Total $ $ - $ $ $ $ (1) Included in cash and investments segregated and on deposit for regulatory purposes in the Company’s condensed consolidated balance sheets. (2) Actual collateral was greater than 102% of the related as sets. (3) Included in receivables from brokers, dealers, and clearing organizations in the Company’s condensed consolidated balance sheets. (4) Included in payables to brokers, dealers, and clearing organizations in the Company’s condensed consolidated balance sheets. (5) Securities loaned are predominantly comprised of equity securities with overnight and continuous remaining contractual maturities . |
Fair Values of Assets and Lia25
Fair Values of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Values of Assets and Liabilities [Abstract] | |
Fair Value Hierarchy for Assets Measured at Fair Value | Quoted Prices in Active Markets Significant Significant for Identical Other Observable Unobservable Assets Inputs Inputs Balance at September 30, 2015 (Level 1) (Level 2) (Level 3) Fair Value Cash equivalents: Money market funds $ $ - $ - $ Commercial paper - - Total cash equivalents - Investments segregated and on deposit for regulatory purposes: Certificates of deposit - - U.S. Government securities - - Total investments segregated and on deposit for regulatory purposes - - Other securities owned: Schwab Funds ® money market funds - - Equity and bond mutual funds - - State and municipal debt obligations - - Equity, U.S. Government and corporate debt, and other securities - Total other securities owned - Securities available for sale: U.S. agency mortgage-backed securities - - Asset-backed securities - - Corporate debt securities - - U.S. agency notes - - U.S. Treasury securities - - Certificates of deposit - - Non-agency commercial mortgage-backed securities - - U.S. state and municipal securities - - Commercial paper - - Other securities - - Total securities available for sale - - Total $ $ $ - $ Quoted Prices in Active Markets Significant Significant for Identical Other Observable Unobservable Assets Inputs Inputs Balance at December 31, 2014 (Level 1) (Level 2) (Level 3) Fair Value Cash equivalents: Money market funds $ $ - $ - $ Commercial paper - - Total cash equivalents - Investments segregated and on deposit for regulatory purposes: Certificates of deposit - - U.S. Government securities - - Total investments segregated and on deposit for regulatory purposes - - Other securities owned: Schwab Funds ® money market funds - - Equity and bond mutual funds - - State and municipal debt obligations - - Equity, U.S. Government and corporate debt, and other securities - Total other securities owned - Securities available for sale: Asset-backed securities - - U.S. agency mortgage-backed securities - - Corporate debt securities - - U.S. agency notes - - U.S. Treasury securities - - Certificates of deposit - - Non-agency commercial mortgage-backed securities - - Other securities - - Total securities available for sale - - Total $ $ $ - $ |
Fair Value Hierarchy for Financial Instruments Not Recorded at Fair Value | Quoted Prices in Active Markets Significant Significant for Identical Other Observable Unobservable Carrying Assets Inputs Inputs Balance at September 30, 2015 Amount (Level 1) (Level 2) (Level 3) Fair Value Assets: Cash and cash equivalents $ $ - $ $ - $ Cash and investments segregated and on deposit for regulatory purposes - - Receivables from brokers, dealers, and clearing organizations - - Receivables from brokerage clients – net - - Securities held to maturity: U.S. agency mortgage-backed securities - - Non-agency commercial mortgage-backed securities - - U.S. Treasury securities - - Total securities held to maturity - - Bank loans: (1) Residential real estate mortgages - - Home equity loans and lines of credit - - Personal loans secured by securities - - Other - - Total bank loans - - Other assets - - Total $ $ - $ $ - $ Liabilities: Bank deposits $ $ - $ $ - $ Payables to brokers, dealers, and clearing organizations - - Payables to brokerage clients - - Accrued expenses and other liabilities - - Long-term debt - - Total $ $ - $ $ - $ (1) The carrying value of bank loans excludes the allowance for loan losses of $31 million at September 30, 2015. Quoted Prices in Active Markets Significant Significant for Identical Other Observable Unobservable Carrying Assets Inputs Inputs Balance at December 31, 2014 Amount (Level 1) (Level 2) (Level 3) Fair Value Assets: Cash and cash equivalents $ $ - $ $ - $ Cash and investments segregated and on deposit for regulatory purposes - - Receivables from brokers, dealers, and clearing organizations - - Receivables from brokerage clients – net - - Securities held to maturity: U.S. agency mortgage-backed securities - - Non-agency commercial mortgage-backed securities - - Total securities held to maturity - - Bank loans: (1) Residential real estate mortgages - - Home equity loans and lines of credit - - Personal loans secured by securities - - Other - - Total bank loans - - Other assets - - Total $ $ - $ $ - $ Liabilities: Bank deposits $ $ - $ $ - $ Payables to brokers, dealers, and clearing organizations - - Payables to brokerage clients - - Accrued expenses and other liabilities - - Long-term debt - - Total $ $ - $ $ - $ (1) The carrying value of bank loans excludes the allowance for loan losses of $42 million at December 31, 2014. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity [Abstract] | |
Preferred Stock Issued and Outstanding | September 30, 2015 December 31, 2014 Shares Shares Issued and Liquidation Issued and Liquidation Outstanding Preference Liquidation Carrying Outstanding Preference Liquidation Carrying (In thousands) Per Share Preference Value (In thousands) Per Share Preference Value Series A $ $ $ $ $ $ Series B Series C - - - - Total Preferred Stock $ $ $ $ |
Accumulated Other Comprehensi27
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accumulated Other Comprehensive Income [Abstract] | |
Components of Other Comprehensive Income | Three Months Ended September 30, 2015 2014 Before Tax Net of Before Tax Net of Tax Effect Tax Tax Effect Tax Change in net unrealized gain on securities available for sale: Net unrealized (loss) gain $ $ $ $ $ $ Reclassification of impairment charges included in net impairment losses on securities - - - - Other reclassifications included in other revenue - - - Change in net unrealized (loss) gain on securities available for sale Other comprehensive (loss) income $ $ $ $ $ $ Nine Months Ended September 30, 2015 2014 Before Tax Net of Before Tax Net of Tax Effect Tax Tax Effect Tax Change in net unrealized gain on securities available for sale: Net unrealized (loss) gain $ $ $ $ $ $ Reclassification of impairment charges included in net impairment losses on securities - - - - Other reclassifications included in other revenue - - - Change in net unrealized (loss) gain on securities available for sale Other comprehensive (loss) income $ $ $ $ $ $ |
Accumulated Other Comprehensive Income Balances | Total Accumulated Other Comprehensive Income Balance at December 31, 2013 $ Net unrealized gain on securities available for sale Balance at September 30, 2014 $ Balance at December 31, 2014 $ Net unrealized loss on securities available for sale Balance at September 30, 2015 $ |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Common Share [Abstract] | |
EPS under Basic and Diluted Computations | Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Net income $ $ $ $ Preferred stock dividends and other (1) Net income available to common stockholders $ $ $ $ Weighted-average common shares outstanding — basic Common stock equivalent shares related to stock incentive plans Weighted-average common shares outstanding — diluted (2) Basic EPS $ .28 $ .24 $ .75 $ .71 Diluted EPS $ .28 $ .24 $ .74 $ .70 (1) Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested restricted stock units. (2) Antidilutive stock options and restricted stock awards excluded from the calculation of diluted EPS totaled 14 million and 12 million shares for the third quarters of 2015 and 2014, respectively, and 16 million and 18 million shares for the first nine months of 2015 and 2014, respectively. |
Regulatory Requirements (Tables
Regulatory Requirements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Regulatory Requirements [Abstract] | |
Regulatory Capital and Ratios | Minimum to be Minimum Capital Actual Well Capitalized Requirement September 30, 2015 Amount Ratio Amount Ratio Amount Ratio CSC (1) Common Equity Tier 1 Risk-Based Capital $ % N/A $ % Tier 1 Risk-Based Capital $ % N/A $ % Total Risk-Based Capital $ % N/A $ % Tier 1 Leverage $ % N/A $ % Schwab Bank Common Equity Tier 1 Risk-Based Capital $ % $ % $ % Tier 1 Risk-Based Capital $ % $ % $ % Total Risk-Based Capital $ % $ % $ % Tier 1 Leverage $ % $ % $ % (1) The ratios above reflect the impact, as of September 30, 2015, of a change in approach related to the risk-weighting of the majority of the Company’s margin loan portfolio in accordance with the Basel III rules which became effective in the first quarter of this year. N/A Not applicable. |
Net Capital and Net Capital Requirements for Schwab and optionsXpress, Inc. | Net Capital Net Capital % of Minimum 2% of in Excess of in Excess of 5% Aggregate Net Capital Aggregate Required of Aggregate September 30, 2015 Net Capital Debit Balances Required Debit Balances Net Capital Debit Balances Schwab $ % $ $ $ $ optionsXpress, Inc. $ % $ $ $ $ |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Information [Abstract] | |
Financial Information for Reportable Segments | Investor Services Advisor Services Unallocated Total Three Months Ended September 30, 2015 2014 2015 2014 2015 2014 2015 2014 Net Revenues: Asset management and administration fees $ $ $ $ $ - $ - $ $ Net interest revenue - - Trading revenue - - Other - Provision for loan losses - - - Net impairment losses on securities - - - - - - Total net revenues - Expenses Excluding Interest - Income before taxes on income $ $ $ $ $ - $ $ $ Investor Services Advisor Services Unallocated Total Nine Months Ended September 30, 2015 2014 2015 2014 2015 2014 2015 2014 Net Revenues: Asset management and administration fees $ $ $ $ $ - $ - $ $ Net interest revenue - - Trading revenue - - Other - Provision for loan losses - - Net impairment losses on securities - - - - - - Total net revenues - Expenses Excluding Interest - Income before taxes on income $ $ $ $ $ - $ $ $ |
Introduction and Basis of Pre31
Introduction and Basis of Presentation (Details) | Sep. 30, 2015stateitem |
Introduction and Basis of Presentation [Abstract] | |
Minimum number of domestic branch offices | item | 325 |
States with domestic branch offices | 45 |
Securities Available for Sale32
Securities Available for Sale and Securities Held to Maturity (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2015 | ||
Securities Available for Sale and Securities Held to Maturity [Abstract] | ||||
Fair value of pledged securities | $ 170 | |||
Net impairment losses on securities | [1] | $ 1 | $ 1 | |
[1] | There were no net impairment losses on securities for the three or nine months ended September 30, 2015. Net impairment losses on securities include total other-than-temporary impairment losses of $1 million recognized in other comprehensive income, net of $0 reclassified from other comprehensive income, for the three and nine months ended September 30, 2014. |
Securities Available for Sale33
Securities Available for Sale and Securities Held to Maturity (Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Securities Available for Sale) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, Amortized Cost | $ 66,324 | $ 54,520 |
Securities available for sale Gross Unrealized Gains | 312 | 346 |
Securities available for sale Gross Unrealized Losses | 282 | 83 |
Securities available for sale | 66,354 | 54,783 |
U.S. agency mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, Amortized Cost | 22,000 | 18,487 |
Securities available for sale Gross Unrealized Gains | 248 | 242 |
Securities available for sale Gross Unrealized Losses | 16 | 12 |
Securities available for sale | 22,232 | 18,717 |
Asset-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, Amortized Cost | 22,080 | 19,320 |
Securities available for sale Gross Unrealized Gains | 13 | 64 |
Securities available for sale Gross Unrealized Losses | 244 | 18 |
Securities available for sale | 21,849 | 19,366 |
Corporate debt securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, Amortized Cost | 10,413 | 8,023 |
Securities available for sale Gross Unrealized Gains | 25 | 30 |
Securities available for sale Gross Unrealized Losses | 14 | 8 |
Securities available for sale | 10,424 | 8,045 |
U.S. agency notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, Amortized Cost | 5,140 | 3,839 |
Securities available for sale Gross Unrealized Gains | 2 | |
Securities available for sale Gross Unrealized Losses | 5 | 44 |
Securities available for sale | 5,137 | 3,795 |
U.S. Treasury securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, Amortized Cost | 4,218 | 2,993 |
Securities available for sale Gross Unrealized Gains | 17 | 2 |
Securities available for sale Gross Unrealized Losses | 1 | |
Securities available for sale | 4,235 | 2,994 |
Certificates of deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, Amortized Cost | 1,924 | 1,533 |
Securities available for sale Gross Unrealized Gains | 1 | 1 |
Securities available for sale Gross Unrealized Losses | 3 | |
Securities available for sale | 1,922 | 1,534 |
U.S. state and municipal securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, Amortized Cost | 168 | |
Securities available for sale Gross Unrealized Gains | 2 | |
Securities available for sale | 170 | |
Non-agency commercial mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, Amortized Cost | 300 | 310 |
Securities available for sale Gross Unrealized Gains | 4 | 7 |
Securities available for sale | 304 | 317 |
Commercial paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, Amortized Cost | 75 | |
Securities available for sale | 75 | |
Other securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, Amortized Cost | 6 | 15 |
Securities available for sale | $ 6 | $ 15 |
Securities Available for Sale34
Securities Available for Sale and Securities Held to Maturity (Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Securities Held to Maturity) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, Amortized Cost | $ 40,534 | $ 34,389 |
Securities held to maturity, Gross Unrealized Gains | 804 | 542 |
Securities held to maturity, Gross Unrealized Losses | 41 | 188 |
Securities held to maturity, Fair Value | 41,297 | 34,743 |
U.S. agency mortgage-backed securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, Amortized Cost | 39,311 | 33,388 |
Securities held to maturity, Gross Unrealized Gains | 790 | 531 |
Securities held to maturity, Gross Unrealized Losses | 36 | 174 |
Securities held to maturity, Fair Value | 40,065 | 33,745 |
Non-agency commercial mortgage-backed securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, Amortized Cost | 1,000 | 1,001 |
Securities held to maturity, Gross Unrealized Gains | 13 | 11 |
Securities held to maturity, Gross Unrealized Losses | 5 | 14 |
Securities held to maturity, Fair Value | 1,008 | $ 998 |
U.S. Treasury securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, Amortized Cost | 223 | |
Securities held to maturity, Gross Unrealized Gains | 1 | |
Securities held to maturity, Fair Value | $ 224 |
Securities Available for Sale35
Securities Available for Sale and Securities Held to Maturity (Available For Sale Securities with Unrealized Losses, Aggregated by Category and Period of Continuous Unrealized Loss) (Details) $ in Millions | Sep. 30, 2015USD ($)security | Dec. 31, 2014USD ($)security |
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available for sale Less than 12 months Fair Value | $ 26,943 | $ 11,028 |
Securities available for sale Less than 12 months Unrealized Losses | 247 | 25 |
Securities available for sale 12 months or longer Fair Value | 4,802 | 6,807 |
Securities available for sale 12 months or longer Unrealized Losses | 35 | 58 |
Total Securities available for sale with unrealized losses Total Fair Value | 31,745 | 17,835 |
Total Securities available for sale with unrealized losses Total Unrealized Losses | $ 282 | $ 83 |
Number of available for sale securities in unrealized loss positions | security | 318 | 173 |
U.S. agency mortgage-backed securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available for sale Less than 12 months Fair Value | $ 6,208 | $ 2,247 |
Securities available for sale Less than 12 months Unrealized Losses | 13 | 5 |
Securities available for sale 12 months or longer Fair Value | 887 | 1,767 |
Securities available for sale 12 months or longer Unrealized Losses | 3 | 7 |
Total Securities available for sale with unrealized losses Total Fair Value | 7,095 | 4,014 |
Total Securities available for sale with unrealized losses Total Unrealized Losses | 16 | 12 |
Asset-backed securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available for sale Less than 12 months Fair Value | 14,588 | 5,754 |
Securities available for sale Less than 12 months Unrealized Losses | 217 | 15 |
Securities available for sale 12 months or longer Fair Value | 1,473 | 792 |
Securities available for sale 12 months or longer Unrealized Losses | 27 | 3 |
Total Securities available for sale with unrealized losses Total Fair Value | 16,061 | 6,546 |
Total Securities available for sale with unrealized losses Total Unrealized Losses | 244 | 18 |
Corporate debt securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available for sale Less than 12 months Fair Value | 4,302 | 1,781 |
Securities available for sale Less than 12 months Unrealized Losses | 13 | 4 |
Securities available for sale 12 months or longer Fair Value | 590 | 552 |
Securities available for sale 12 months or longer Unrealized Losses | 1 | 4 |
Total Securities available for sale with unrealized losses Total Fair Value | 4,892 | 2,333 |
Total Securities available for sale with unrealized losses Total Unrealized Losses | 14 | 8 |
U.S. agency notes [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available for sale Less than 12 months Fair Value | 748 | |
Securities available for sale Less than 12 months Unrealized Losses | 1 | |
Securities available for sale 12 months or longer Fair Value | 1,852 | 3,696 |
Securities available for sale 12 months or longer Unrealized Losses | 4 | 44 |
Total Securities available for sale with unrealized losses Total Fair Value | 2,600 | 3,696 |
Total Securities available for sale with unrealized losses Total Unrealized Losses | 5 | 44 |
Certificates of deposit [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available for sale Less than 12 months Fair Value | 1,097 | |
Securities available for sale Less than 12 months Unrealized Losses | 3 | |
Total Securities available for sale with unrealized losses Total Fair Value | 1,097 | |
Total Securities available for sale with unrealized losses Total Unrealized Losses | $ 3 | |
U.S. Treasury securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available for sale Less than 12 months Fair Value | 1,246 | |
Securities available for sale Less than 12 months Unrealized Losses | 1 | |
Total Securities available for sale with unrealized losses Total Fair Value | 1,246 | |
Total Securities available for sale with unrealized losses Total Unrealized Losses | $ 1 |
Securities Available for Sale36
Securities Available for Sale and Securities Held to Maturity (Held To Maturity Securities with Unrealized Losses, Aggregated by Category and Period of Continuous Unrealized Loss) (Details) $ in Millions | Sep. 30, 2015USD ($)security | Dec. 31, 2014USD ($)security |
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity Less than 12 months Fair Value | $ 6,128 | $ 264 |
Securities held to maturity Less than 12 months Unrealized Losses | 29 | 1 |
Securities held to maturity 12 months or longer Fair Value | 1,924 | 11,075 |
Securities held to maturity 12 months or longer Unrealized Losses | 12 | 187 |
Total Securities held to maturity with unrealized losses Total Fair Value | 8,052 | 11,339 |
Total Securities held to maturity with unrealized losses Total Unrealized Losses | $ 41 | $ 188 |
Number of held to maturity securities in unrealized loss positions | security | 67 | 111 |
U.S. agency mortgage-backed securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity Less than 12 months Fair Value | $ 5,460 | $ 264 |
Securities held to maturity Less than 12 months Unrealized Losses | 24 | 1 |
Securities held to maturity 12 months or longer Fair Value | 1,924 | 10,415 |
Securities held to maturity 12 months or longer Unrealized Losses | 12 | 173 |
Total Securities held to maturity with unrealized losses Total Fair Value | 7,384 | 10,679 |
Total Securities held to maturity with unrealized losses Total Unrealized Losses | 36 | 174 |
Non-agency commercial mortgage-backed securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity Less than 12 months Fair Value | 668 | |
Securities held to maturity Less than 12 months Unrealized Losses | 5 | |
Securities held to maturity 12 months or longer Fair Value | 660 | |
Securities held to maturity 12 months or longer Unrealized Losses | 14 | |
Total Securities held to maturity with unrealized losses Total Fair Value | 668 | 660 |
Total Securities held to maturity with unrealized losses Total Unrealized Losses | $ 5 | $ 14 |
Securities Available for Sale37
Securities Available for Sale and Securities Held to Maturity (Securities with Unrealized Losses, Aggregated by Category and Period of Continuous Unrealized Loss) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Securities Available for Sale and Securities Held to Maturity [Abstract] | ||
Securities available for sale Less than 12 months Fair Value | $ 26,943 | $ 11,028 |
Securities available for sale Less than 12 months Unrealized Losses | 247 | 25 |
Securities available for sale 12 months or longer Fair Value | 4,802 | 6,807 |
Securities available for sale 12 months or longer Unrealized Losses | 35 | 58 |
Total Securities available for sale with unrealized losses Total Fair Value | 31,745 | 17,835 |
Total Securities available for sale with unrealized losses Total Unrealized Losses | 282 | 83 |
Securities held to maturity Less than 12 months Fair Value | 6,128 | 264 |
Securities held to maturity Less than 12 months Unrealized Losses | 29 | 1 |
Securities held to maturity 12 months or longer Fair Value | 1,924 | 11,075 |
Securities held to maturity 12 months or longer Unrealized Losses | 12 | 187 |
Total Securities held to maturity with unrealized losses Total Fair Value | 8,052 | 11,339 |
Total Securities held to maturity with unrealized losses Total Unrealized Losses | 41 | 188 |
Securities Less than 12 months Fair Value | 33,071 | 11,292 |
Securities Less than 12 months Unrealized Losses | 276 | 26 |
Securities 12 months or longer Fair Value | 6,726 | 17,882 |
Securities 12 months or longer Unrealized Losses | 47 | 245 |
Total securities with unrealized losses Total Fair Value | 39,797 | 29,174 |
Total securities with unrealized losses Total Unrealized Losses | $ 323 | $ 271 |
Securities Available for Sale38
Securities Available for Sale and Securities Held to Maturity (Maturities of Securities Available for Sale) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, Within 1 year | $ 3,995 | |
Securities available for sale, After 1 year through 5 years | 25,822 | |
Securities available for sale, After 5 years through 10 years | 13,518 | |
Securities available for sale, After 10 years | 23,019 | |
Securities available for sale, Fair Value | 66,354 | $ 54,783 |
Securities available for sale, Within 1 year amortized cost | 3,990 | |
Securities available for sale, After 1 year through 5 years amortized cost | 25,792 | |
Securities available for sale, After 5 years through 10 years amortized cost | 13,437 | |
Securities available for sale, After 10 years amortized cost | 23,105 | |
Securities available for sale, Amortized Cost | 66,324 | 54,520 |
U.S. agency mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, After 1 year through 5 years | 1,220 | |
Securities available for sale, After 5 years through 10 years | 9,977 | |
Securities available for sale, After 10 years | 11,035 | |
Securities available for sale, Fair Value | 22,232 | 18,717 |
Securities available for sale, Amortized Cost | 22,000 | 18,487 |
Asset-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, After 1 year through 5 years | 6,934 | |
Securities available for sale, After 5 years through 10 years | 3,411 | |
Securities available for sale, After 10 years | 11,504 | |
Securities available for sale, Fair Value | 21,849 | 19,366 |
Securities available for sale, Amortized Cost | 22,080 | 19,320 |
Corporate debt securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, Within 1 year | 2,469 | |
Securities available for sale, After 1 year through 5 years | 7,825 | |
Securities available for sale, After 5 years through 10 years | 130 | |
Securities available for sale, Fair Value | 10,424 | 8,045 |
Securities available for sale, Amortized Cost | 10,413 | 8,023 |
U.S. agency notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, After 1 year through 5 years | 5,137 | |
Securities available for sale, Fair Value | 5,137 | 3,795 |
Securities available for sale, Amortized Cost | 5,140 | 3,839 |
U.S. Treasury securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, Within 1 year | 501 | |
Securities available for sale, After 1 year through 5 years | 3,734 | |
Securities available for sale, Fair Value | 4,235 | 2,994 |
Securities available for sale, Amortized Cost | 4,218 | 2,993 |
Certificates of deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, Within 1 year | 950 | |
Securities available for sale, After 1 year through 5 years | 972 | |
Securities available for sale, Fair Value | 1,922 | 1,534 |
Securities available for sale, Amortized Cost | 1,924 | 1,533 |
U.S. state and municipal securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, After 10 years | 170 | |
Securities available for sale, Fair Value | 170 | |
Securities available for sale, Amortized Cost | 168 | |
Non-agency commercial mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, After 10 years | 304 | |
Securities available for sale, Fair Value | 304 | 317 |
Securities available for sale, Amortized Cost | 300 | 310 |
Commercial paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, Within 1 year | 75 | |
Securities available for sale, Fair Value | 75 | |
Securities available for sale, Amortized Cost | 75 | |
Other securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, After 10 years | 6 | |
Securities available for sale, Fair Value | 6 | 15 |
Securities available for sale, Amortized Cost | $ 6 | $ 15 |
Securities Available for Sale39
Securities Available for Sale and Securities Held to Maturity (Maturities of Securities Held to Maturity) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, Within 1 year | ||
Securities held to maturity, After 1 year through 5 years | $ 1,997 | |
Securities held to maturity, After 5 years through 10 years | 18,569 | |
Securities held to maturity, After 10 years | 20,731 | |
Securities held to maturity, Fair Value | $ 41,297 | $ 34,743 |
Securities held to maturity, Within 1 year amortized cost | ||
Securities held to maturity, After 1 year through 5 years amortized cost | $ 1,910 | |
Securities held to maturity, After 5 years through 10 years amortized cost | 18,129 | |
Securities held to maturity, After 10 years amortized cost | 20,495 | |
Securities held to maturity, Amortized Cost | $ 40,534 | 34,389 |
U.S. agency mortgage-backed securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, Within 1 year | ||
Securities held to maturity, After 1 year through 5 years | $ 1,997 | |
Securities held to maturity, After 5 years through 10 years | 17,980 | |
Securities held to maturity, After 10 years | 20,088 | |
Securities held to maturity, Fair Value | 40,065 | 33,745 |
Securities held to maturity, Amortized Cost | 39,311 | 33,388 |
Non-agency commercial mortgage-backed securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, After 5 years through 10 years | 365 | |
Securities held to maturity, After 10 years | 643 | |
Securities held to maturity, Fair Value | 1,008 | 998 |
Securities held to maturity, Amortized Cost | 1,000 | $ 1,001 |
U.S. Treasury securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, After 5 years through 10 years | 224 | |
Securities held to maturity, Fair Value | 224 | |
Securities held to maturity, Amortized Cost | $ 223 |
Securities Available for Sale40
Securities Available for Sale and Securities Held to Maturity (Proceeds and Gross Realized Gains and Losses from Sales of Securities Available for Sale) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Securities Available for Sale and Securities Held to Maturity [Abstract] | ||||
Proceeds | $ 5 | $ 3,679 | $ 599 | $ 5,724 |
Gross realized gains | $ 12 | 1 | $ 14 | |
Gross realized losses | $ 1 |
Bank Loans and Related Allowa41
Bank Loans and Related Allowance for Loan Losses (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015USD ($)loan | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)loan | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($)loan | |
Loans Receivable [Line Items] | |||||
Commitments to extend credit related to unused home equity lines of credit, personal loans secured by securities, and other lines of credit | $ 7,200 | $ 7,200 | $ 6,700 | ||
Number of loans accruing interest contractually 90 days or more past due | loan | 0 | 0 | 0 | ||
Nonperforming assets, including nonaccrual loans and other real estate owned | $ 36 | $ 36 | $ 44 | ||
First Mortgage [Member] | |||||
Loans Receivable [Line Items] | |||||
Purchased first mortgages and HELOCs | 469 | $ 371 | 1,500 | $ 989 | |
Home Equity Loans and Lines of Credit [Member] | |||||
Loans Receivable [Line Items] | |||||
Purchased first mortgages and HELOCs | $ 150 | $ 167 | $ 432 | $ 514 | |
First Mortgage and Home Equity Loans and Lines of Credit [Member] | California [Member] | Loans, Geographic Area [Member] | |||||
Loans Receivable [Line Items] | |||||
Concentration risk percentage | 48.00% | 48.00% |
Bank Loans and Related Allowa42
Bank Loans and Related Allowance for Loan Losses (Composition of Bank Loans by Loan Segment) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Bank loans | $ 14,283 | $ 13,441 | ||||
Allowance for loan losses | (31) | $ (36) | (42) | $ (40) | $ (41) | $ (48) |
Total bank loans — net | 14,252 | 13,399 | ||||
Residential Real Estate Mortgages [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Bank loans | 8,274 | 8,127 | ||||
Allowance for loan losses | (20) | (23) | (29) | (28) | (28) | (34) |
Home Equity Loans and Lines of Credit [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Bank loans | 2,787 | 2,955 | ||||
Allowance for loan losses | (11) | $ (13) | (13) | $ (12) | $ (13) | $ (14) |
Personal loans secured by securities [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Bank loans | 3,166 | 2,320 | ||||
Other [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Bank loans | $ 56 | $ 39 |
Bank Loans and Related Allowa43
Bank Loans and Related Allowance for Loan Losses (Changes in Allowance for Loan Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance at beginning of period | $ 36 | $ 41 | $ 42 | $ 48 |
Charge-offs | (2) | (3) | ||
Recoveries | 1 | 3 | 2 | |
Provision for loan losses | (6) | (1) | (12) | (7) |
Balance at end of period | 31 | 40 | 31 | 40 |
Residential Real Estate Mortgages [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance at beginning of period | 23 | 28 | 29 | 34 |
Charge-offs | (1) | |||
Recoveries | 1 | 1 | 1 | |
Provision for loan losses | (4) | (10) | (6) | |
Balance at end of period | 20 | 28 | 20 | 28 |
Home Equity Loans and Lines of Credit [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance at beginning of period | 13 | 13 | 13 | 14 |
Charge-offs | (2) | (2) | ||
Recoveries | 2 | 1 | ||
Provision for loan losses | (2) | (1) | (2) | (1) |
Balance at end of period | $ 11 | $ 12 | $ 11 | $ 12 |
Bank Loans and Related Allowa44
Bank Loans and Related Allowance for Loan Losses (Delinquency Analysis by Loan Class) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 14,230 | $ 13,392 |
Past due and other nonaccrual loans | 53 | 49 |
Total loans | 14,283 | 13,441 |
30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due and other nonaccrual loans | 22 | 11 |
60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due and other nonaccrual loans | 3 | 3 |
>90 Days Past Due And Other Nonaccrual Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due and other nonaccrual loans | 28 | 35 |
Residential Real Estate Mortgages [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 8,238 | 8,092 |
Past due and other nonaccrual loans | 36 | 35 |
Total loans | 8,274 | 8,127 |
Residential Real Estate Mortgages [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due and other nonaccrual loans | 16 | 9 |
Residential Real Estate Mortgages [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due and other nonaccrual loans | 1 | 2 |
Residential Real Estate Mortgages [Member] | >90 Days Past Due And Other Nonaccrual Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due and other nonaccrual loans | 19 | 24 |
Home Equity Loans and Lines of Credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 2,772 | 2,942 |
Past due and other nonaccrual loans | 15 | 13 |
Total loans | 2,787 | 2,955 |
Home Equity Loans and Lines of Credit [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due and other nonaccrual loans | 4 | 1 |
Home Equity Loans and Lines of Credit [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due and other nonaccrual loans | 2 | 1 |
Home Equity Loans and Lines of Credit [Member] | >90 Days Past Due And Other Nonaccrual Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due and other nonaccrual loans | 9 | 11 |
Personal loans secured by securities [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 3,164 | 2,320 |
Past due and other nonaccrual loans | 2 | |
Total loans | 3,166 | 2,320 |
Personal loans secured by securities [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due and other nonaccrual loans | 2 | |
Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 56 | 38 |
Past due and other nonaccrual loans | 1 | |
Total loans | $ 56 | 39 |
Other [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due and other nonaccrual loans | $ 1 |
Bank Loans and Related Allowa45
Bank Loans and Related Allowance for Loan Losses (Credit Quality of Residential Real Estate Mortgages and HELOCs by Reviewing FICO Scores at Origination, Current FICO Scores, Loan-To-Value Ratio) (Details) $ in Millions | Sep. 30, 2015USD ($)item | Dec. 31, 2014USD ($)item |
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | $ 14,283 | $ 13,441 |
Residential Real Estate Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | $ 8,274 | $ 8,127 |
Weighted Average Updated FICO | item | 774 | 773 |
Percent of Loans that are on Nonaccrual Status | 0.14% | 0.18% |
Home Equity Loans and Lines of Credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | $ 2,787 | $ 2,955 |
Weighted Average Updated FICO | item | 770 | 769 |
Utilization Rate | 39.00% | 39.00% |
Percent of Loans that are on Nonaccrual Status | 0.13% | 0.20% |
Year of origination Pre 2011 [Member] | Residential Real Estate Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | $ 934 | $ 1,119 |
Year of origination Pre 2011 [Member] | Home Equity Loans and Lines of Credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | 2,003 | 2,244 |
Year of origination 2011 [Member] | Residential Real Estate Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | 459 | 588 |
Year of origination 2011 [Member] | Home Equity Loans and Lines of Credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | 118 | 137 |
Year of origination 2012 [Member] | Residential Real Estate Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | 1,766 | 2,107 |
Year of origination 2012 [Member] | Home Equity Loans and Lines of Credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | 130 | 147 |
Year of origination 2013 [Member] | Residential Real Estate Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | 2,617 | 3,047 |
Year of origination 2013 [Member] | Home Equity Loans and Lines of Credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | 242 | 250 |
Year of origination 2014 [Member] | Residential Real Estate Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | 1,087 | 1,266 |
Year of origination 2014 [Member] | Home Equity Loans and Lines of Credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | 189 | 177 |
Year of origination 2015 [Member] | Residential Real Estate Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | 1,411 | |
Year of origination 2015 [Member] | Home Equity Loans and Lines of Credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | 105 | |
Origination FICO Score Below 620 [Member] | Residential Real Estate Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | 10 | 10 |
Origination FICO Score 620 Through 679 [Member] | Residential Real Estate Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | 89 | 97 |
Origination FICO Score 620 Through 679 [Member] | Home Equity Loans and Lines of Credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | 16 | 18 |
Origination FICO Score 680 Through 739 [Member] | Residential Real Estate Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | 1,371 | 1,366 |
Origination FICO Score 680 Through 739 [Member] | Home Equity Loans and Lines of Credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | 511 | 549 |
Origination FICO Score 740 And Above [Member] | Residential Real Estate Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | 6,804 | 6,654 |
Origination FICO Score 740 And Above [Member] | Home Equity Loans and Lines of Credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | 2,260 | 2,388 |
Origination Loan To Value Ratio 70% And Below [Member] | Residential Real Estate Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | 5,802 | 5,572 |
Origination Loan To Value Ratio 70% And Below [Member] | Home Equity Loans and Lines of Credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | 1,886 | 1,979 |
Origination Loan to Value Ratio Greater Than 70% Through 90% [Member] | Residential Real Estate Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | 2,459 | 2,538 |
Origination Loan to Value Ratio Greater Than 70% Through 90% [Member] | Home Equity Loans and Lines of Credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | 884 | 955 |
Origination Loan to Value Ratio Greater Than 90% Through 100% [Member] | Residential Real Estate Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | 13 | 17 |
Origination Loan to Value Ratio Greater Than 90% Through 100% [Member] | Home Equity Loans and Lines of Credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | 17 | 21 |
Estimated Current LTV 70% And Below [Member] | Residential Real Estate Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | $ 7,428 | $ 7,131 |
Weighted Average Updated FICO | item | 775 | 774 |
Percent of Loans that are on Nonaccrual Status | 0.06% | 0.04% |
Estimated Current LTV 70% And Below [Member] | Home Equity Loans and Lines of Credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | $ 2,267 | $ 2,282 |
Weighted Average Updated FICO | item | 773 | 773 |
Utilization Rate | 37.00% | 36.00% |
Percent of Loans that are on Nonaccrual Status | 0.05% | 0.08% |
Estimated Current LTV Greater Than 70% through 90% [Member] | Residential Real Estate Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | $ 767 | $ 882 |
Weighted Average Updated FICO | item | 765 | 765 |
Percent of Loans that are on Nonaccrual Status | 0.44% | 0.50% |
Estimated Current LTV Greater Than 70% through 90% [Member] | Home Equity Loans and Lines of Credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | $ 413 | $ 526 |
Weighted Average Updated FICO | item | 762 | 762 |
Utilization Rate | 49.00% | 48.00% |
Percent of Loans that are on Nonaccrual Status | 0.35% | 0.34% |
Estimated Current LTV Greater Than 90% through 100% [Member] | Residential Real Estate Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | $ 45 | $ 61 |
Weighted Average Updated FICO | item | 742 | 740 |
Percent of Loans that are on Nonaccrual Status | 3.93% | 2.95% |
Estimated Current LTV Greater Than 90% through 100% [Member] | Home Equity Loans and Lines of Credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | $ 57 | $ 81 |
Weighted Average Updated FICO | item | 749 | 749 |
Utilization Rate | 58.00% | 61.00% |
Percent of Loans that are on Nonaccrual Status | 0.74% | 1.67% |
Estimated Current LTV Greater Than 100% [Member] | Residential Real Estate Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | $ 34 | $ 53 |
Weighted Average Updated FICO | item | 729 | 726 |
Percent of Loans that are on Nonaccrual Status | 5.48% | 10.95% |
Estimated Current LTV Greater Than 100% [Member] | Home Equity Loans and Lines of Credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Bank loans | $ 50 | $ 66 |
Weighted Average Updated FICO | item | 746 | 742 |
Utilization Rate | 65.00% | 63.00% |
Percent of Loans that are on Nonaccrual Status | 0.90% | 1.54% |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) | Mar. 10, 2015USD ($) |
Senior Notes Due 2018 [Member] | |
Debt Instrument [Line Items] | |
Issued Senior Notes | $ 625,000,000 |
Debt instrument maturity year | 2,018 |
Interest rate | 1.50% |
Senior Notes Due 2025 [Member] | |
Debt Instrument [Line Items] | |
Issued Senior Notes | $ 375,000,000 |
Debt instrument maturity year | 2,025 |
Interest rate | 3.00% |
Borrowings (Long-term Debt Incl
Borrowings (Long-term Debt Including Unamortized Debt Discounts and Premiums) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Borrowings [Abstract] | ||
Senior Notes | $ 2,566 | $ 1,567 |
Senior Medium-Term Notes, Series A | 250 | 249 |
Finance lease obligation | 77 | 83 |
Total long-term debt | $ 2,893 | $ 1,899 |
Borrowings (Annual Maturities o
Borrowings (Annual Maturities on Long-term Debt Outstanding) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Borrowings [Abstract] | ||
2,015 | $ 352 | |
2,016 | 7 | |
2,017 | 258 | |
2,018 | 908 | |
2,019 | 8 | |
Thereafter | 1,375 | |
Total maturities | 2,908 | |
Unamortized discount, net | (15) | |
Total long-term debt | $ 2,893 | $ 1,899 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Aug. 28, 2008 | |
Commitments and Contingencies Disclosure [Line Items] | ||
Amount of commitment qualified affordable housing project investments | $ 63 | |
Amount of investment in qualified affordable housing projects | 79 | |
Standby letters of credit [Member] | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Aggregate face amount of letter of credit agreements | 280 | |
Performance Guarantee [Member] | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Liability for guarantees | 0 | |
Bond Market Fund Litigation [Member] | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Alleged minimum percentage of fund assets invested in CMOs and mortgage-backed securities without obtaining shareholder vote | 25.00% | |
Margin Requirements [Member] | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Funds drawn under LOC's | $ 0 | |
Minimum [Member] | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Commitment to investments in qualified affordable housing project, payment period | 2,015 | |
Maximum [Member] | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Commitment to investments in qualified affordable housing project, payment period | 2,020 |
Offsetting Assets and Liabili50
Offsetting Assets and Liabilities (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Resale And Repurchase Agreements [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Fair value of Schwab's client securities pledged to fulfill the short sales | $ 8,000 | $ 10,400 |
Securities Financing Transaction, Fair Value [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Fair value of client securities pledged in securities lending transactions to other broker-dealers | 1,800 | 1,300 |
Fair value of borrowed securities from other broker-dealers to fulfill short sales by clients | $ 33 | $ 88 |
Offsetting Assets and Liabili51
Offsetting Assets and Liabilities (Offsetting Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Offsetting Assets and Liabilities [Abstract] | ||
Resale agreements, Gross Asset | $ 7,852 | $ 10,186 |
Resale agreements, Net Amounts Presented in the Consolidated Balance Sheet | 7,852 | 10,186 |
Resale agreements, Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral | (7,852) | (10,186) |
Resale agreements, Net Amount | 0 | 0 |
Securities borrowed, Gross Asset | 148 | 187 |
Securities borrowed, Net Amounts Presented in the Consolidated Balance Sheet | 148 | 187 |
Securities borrowed, Gross Amounts Not Offset in the Consolidated Balance Sheet, Counterparty Offsetting | (24) | (69) |
Securities borrowed, Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral | (124) | (117) |
Securities borrowed, Net Amount | 0 | 1 |
Total Gross Assets | 8,000 | 10,373 |
Total Assets, Net Amounts Presented in the Consolidated Balance Sheet | 8,000 | 10,373 |
Total Assets, Gross Amounts Not Offset in the Consolidated Balance Sheet, Counterparty Offsetting | (24) | (69) |
Total Assets, Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral | (7,976) | (10,303) |
Total Assets, Net Amount | $ 0 | $ 1 |
Offsetting Assets and Liabili52
Offsetting Assets and Liabilities (Offsetting Liabilities) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Offsetting Assets and Liabilities [Abstract] | ||
Securities loaned, Gross Liabilities | $ 2,088 | $ 1,477 |
Securities loaned, Net Amounts Presented in the Consolidated Balance Sheet | 2,088 | 1,477 |
Securities loaned, Gross Amounts Not Offset in the Consolidated Balance Sheet, Counterparty Offsetting | (24) | (69) |
Securities loaned, Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral | (1,944) | (1,293) |
Securities loaned, Net Amount | 120 | 115 |
Total Gross Liabilities | 2,088 | 1,477 |
Total Liabilities, Net Amounts Presented in the Consolidated Balance Sheet | 2,088 | 1,477 |
Total Liabilities, Gross Amounts Not Offset in the Consolidated Balance Sheet, Counterparty Offsetting | (24) | (69) |
Total Liabilities, Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral | (1,944) | (1,293) |
Total Liabilities, Net Amount | $ 120 | $ 115 |
Percentage of collateral to related assets | 102.00% |
Fair Values of Assets and Lia53
Fair Values of Assets and Liabilities (Fair Value Hierarchy for Assets Measured at Fair Value) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | $ 470 | $ 516 |
Securities available for sale | 66,354 | 54,783 |
Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2,060 | 2,174 |
Investments segregated and on deposit for regulatory purposes | 4,977 | 6,311 |
Other securities owned | 470 | 516 |
Securities available for sale | 66,354 | 54,783 |
Total | 73,861 | 63,784 |
Money market funds [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,575 | 2,142 |
Commercial paper [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 485 | 32 |
Securities available for sale | 75 | |
Certificates of deposit [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 3,151 | 4,125 |
Securities available for sale | 1,922 | 1,534 |
U.S. Government securities [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 1,826 | 2,186 |
Schwab Funds money market funds [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 202 | 224 |
Equity and bond mutual funds [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 200 | 215 |
State and municipal debt obligations [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 44 | 51 |
Equity, U.S. Government and corporate debt, and other securities [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 24 | 26 |
Asset-backed securities [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 21,849 | 19,366 |
U.S. agency mortgage-backed securities [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 22,232 | 18,717 |
Corporate debt securities [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 10,424 | 8,045 |
U.S. agency notes [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 5,137 | 3,795 |
U.S. Treasury securities [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 4,235 | 2,994 |
U.S. state and municipal securities | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 170 | |
Non-agency commercial mortgage-backed securities [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 304 | 317 |
Other securities [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 6 | 15 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,575 | 2,142 |
Other securities owned | 404 | 441 |
Total | 1,979 | 2,583 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money market funds [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,575 | 2,142 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Schwab Funds money market funds [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 202 | 224 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity and bond mutual funds [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 200 | 215 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity, U.S. Government and corporate debt, and other securities [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 2 | 2 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 485 | 32 |
Investments segregated and on deposit for regulatory purposes | 4,977 | 6,311 |
Other securities owned | 66 | 75 |
Securities available for sale | 66,354 | 54,783 |
Total | 71,882 | 61,201 |
Significant Other Observable Inputs (Level 2) [Member] | Commercial paper [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 485 | 32 |
Securities available for sale | 75 | |
Significant Other Observable Inputs (Level 2) [Member] | Certificates of deposit [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 3,151 | 4,125 |
Securities available for sale | 1,922 | 1,534 |
Significant Other Observable Inputs (Level 2) [Member] | U.S. Government securities [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 1,826 | 2,186 |
Significant Other Observable Inputs (Level 2) [Member] | State and municipal debt obligations [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 44 | 51 |
Significant Other Observable Inputs (Level 2) [Member] | Equity, U.S. Government and corporate debt, and other securities [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 22 | 24 |
Significant Other Observable Inputs (Level 2) [Member] | Asset-backed securities [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 21,849 | 19,366 |
Significant Other Observable Inputs (Level 2) [Member] | U.S. agency mortgage-backed securities [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 22,232 | 18,717 |
Significant Other Observable Inputs (Level 2) [Member] | Corporate debt securities [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 10,424 | 8,045 |
Significant Other Observable Inputs (Level 2) [Member] | U.S. agency notes [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 5,137 | 3,795 |
Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury securities [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 4,235 | 2,994 |
Significant Other Observable Inputs (Level 2) [Member] | U.S. state and municipal securities | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 170 | |
Significant Other Observable Inputs (Level 2) [Member] | Non-agency commercial mortgage-backed securities [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 304 | 317 |
Significant Other Observable Inputs (Level 2) [Member] | Other securities [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 6 | $ 15 |
Fair Values of Assets and Lia54
Fair Values of Assets and Liabilities (Fair Value Hierarchy for Financial Instruments Not Recorded at Fair Value) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Assets: | ||||||
Securities held to maturity | $ 41,297 | $ 34,743 | ||||
Liabilities: | ||||||
Allowance for loan losses | 31 | $ 36 | 42 | $ 40 | $ 41 | $ 48 |
Residential Real Estate Mortgages [Member] | ||||||
Liabilities: | ||||||
Allowance for loan losses | 20 | 23 | 29 | 28 | 28 | 34 |
Home Equity Loans and Lines of Credit [Member] | ||||||
Liabilities: | ||||||
Allowance for loan losses | 11 | $ 13 | 13 | $ 12 | $ 13 | $ 14 |
Carrying Amount, Portion at Other than Fair Value Measurement [Member] | ||||||
Assets: | ||||||
Cash and cash equivalents | 8,306 | 9,189 | ||||
Cash and investments segregated and on deposit for regulatory purposes | 12,262 | 14,466 | ||||
Receivables from brokers, dealers, and clearing organizations | 583 | 469 | ||||
Receivables from brokerage clients - net | 17,086 | 15,666 | ||||
Securities held to maturity | 40,534 | 34,389 | ||||
Bank loans | 14,283 | 13,441 | ||||
Other assets | 147 | 76 | ||||
Total | 93,201 | 87,696 | ||||
Liabilities: | ||||||
Bank deposits | 119,017 | 102,815 | ||||
Payables to brokers, dealers, and clearing organizations | 2,707 | 2,004 | ||||
Payables to brokerage clients | 31,040 | 34,305 | ||||
Accrued expenses and other liabilities | 637 | 687 | ||||
Long-term debt | 2,893 | 1,899 | ||||
Total | 156,294 | 141,710 | ||||
Carrying Amount, Portion at Other than Fair Value Measurement [Member] | Residential Real Estate Mortgages [Member] | ||||||
Assets: | ||||||
Bank loans | 8,274 | 8,127 | ||||
Carrying Amount, Portion at Other than Fair Value Measurement [Member] | Home Equity Loans and Lines of Credit [Member] | ||||||
Assets: | ||||||
Bank loans | 2,787 | 2,955 | ||||
Carrying Amount, Portion at Other than Fair Value Measurement [Member] | Personal loans secured by securities [Member] | ||||||
Assets: | ||||||
Bank loans | 3,166 | 2,320 | ||||
Carrying Amount, Portion at Other than Fair Value Measurement [Member] | Other [Member] | ||||||
Assets: | ||||||
Bank loans | 56 | 39 | ||||
Carrying Amount, Portion at Other than Fair Value Measurement [Member] | U.S. agency mortgage-backed securities [Member] | ||||||
Assets: | ||||||
Securities held to maturity | 39,311 | 33,388 | ||||
Carrying Amount, Portion at Other than Fair Value Measurement [Member] | Non-agency commercial mortgage-backed securities [Member] | ||||||
Assets: | ||||||
Securities held to maturity | 1,000 | 1,001 | ||||
Carrying Amount, Portion at Other than Fair Value Measurement [Member] | U.S. Treasury securities [Member] | ||||||
Assets: | ||||||
Securities held to maturity | 223 | |||||
Portion at Other than Fair Value Measurement [Member] | ||||||
Assets: | ||||||
Cash and cash equivalents | 8,306 | 9,189 | ||||
Cash and investments segregated and on deposit for regulatory purposes | 12,262 | 14,466 | ||||
Receivables from brokers, dealers, and clearing organizations | 583 | 469 | ||||
Receivables from brokerage clients - net | 17,086 | 15,666 | ||||
Securities held to maturity | 41,297 | 34,743 | ||||
Bank loans | 14,401 | 13,542 | ||||
Other assets | 147 | 76 | ||||
Total | 94,082 | 88,151 | ||||
Liabilities: | ||||||
Bank deposits | 119,017 | 102,815 | ||||
Payables to brokers, dealers, and clearing organizations | 2,707 | 2,004 | ||||
Payables to brokerage clients | 31,040 | 34,305 | ||||
Accrued expenses and other liabilities | 637 | 687 | ||||
Long-term debt | 2,993 | 2,010 | ||||
Total | 156,394 | 141,821 | ||||
Portion at Other than Fair Value Measurement [Member] | Residential Real Estate Mortgages [Member] | ||||||
Assets: | ||||||
Bank loans | 8,308 | 8,158 | ||||
Portion at Other than Fair Value Measurement [Member] | Home Equity Loans and Lines of Credit [Member] | ||||||
Assets: | ||||||
Bank loans | 2,871 | 3,026 | ||||
Portion at Other than Fair Value Measurement [Member] | Personal loans secured by securities [Member] | ||||||
Assets: | ||||||
Bank loans | 3,166 | 2,320 | ||||
Portion at Other than Fair Value Measurement [Member] | Other [Member] | ||||||
Assets: | ||||||
Bank loans | 56 | 38 | ||||
Portion at Other than Fair Value Measurement [Member] | U.S. agency mortgage-backed securities [Member] | ||||||
Assets: | ||||||
Securities held to maturity | 40,065 | 33,745 | ||||
Portion at Other than Fair Value Measurement [Member] | Non-agency commercial mortgage-backed securities [Member] | ||||||
Assets: | ||||||
Securities held to maturity | 1,008 | 998 | ||||
Portion at Other than Fair Value Measurement [Member] | U.S. Treasury securities [Member] | ||||||
Assets: | ||||||
Securities held to maturity | 224 | |||||
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||||
Assets: | ||||||
Cash and cash equivalents | 8,306 | 9,189 | ||||
Cash and investments segregated and on deposit for regulatory purposes | 12,262 | 14,466 | ||||
Receivables from brokers, dealers, and clearing organizations | 583 | 469 | ||||
Receivables from brokerage clients - net | 17,086 | 15,666 | ||||
Securities held to maturity | 41,297 | 34,743 | ||||
Bank loans | 14,401 | 13,542 | ||||
Other assets | 147 | 76 | ||||
Total | 94,082 | 88,151 | ||||
Liabilities: | ||||||
Bank deposits | 119,017 | 102,815 | ||||
Payables to brokers, dealers, and clearing organizations | 2,707 | 2,004 | ||||
Payables to brokerage clients | 31,040 | 34,305 | ||||
Accrued expenses and other liabilities | 637 | 687 | ||||
Long-term debt | 2,993 | 2,010 | ||||
Total | 156,394 | 141,821 | ||||
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Residential Real Estate Mortgages [Member] | ||||||
Assets: | ||||||
Bank loans | 8,308 | 8,158 | ||||
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Home Equity Loans and Lines of Credit [Member] | ||||||
Assets: | ||||||
Bank loans | 2,871 | 3,026 | ||||
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Personal loans secured by securities [Member] | ||||||
Assets: | ||||||
Bank loans | 3,166 | 2,320 | ||||
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other [Member] | ||||||
Assets: | ||||||
Bank loans | 56 | 38 | ||||
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. agency mortgage-backed securities [Member] | ||||||
Assets: | ||||||
Securities held to maturity | 40,065 | 33,745 | ||||
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Non-agency commercial mortgage-backed securities [Member] | ||||||
Assets: | ||||||
Securities held to maturity | 1,008 | $ 998 | ||||
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury securities [Member] | ||||||
Assets: | ||||||
Securities held to maturity | $ 224 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 03, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Class of Stock [Line Items] | |||
Shares issued | 0 | 0 | |
Preferred stock, par value | $ 0.01 | $ 0.01 | |
Preferred stock, aggregate liquidation preference | $ 1,485 | $ 885 | |
Net proceeds from issuance of preferred stock offerings | $ 581 | ||
Series C Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Depositary shares issued | 24,000,000 | ||
Depositary shares preferred stock ownership interest (per share) | 2.50% | ||
Fixed dividend rate on preferred stock | 6.00% | ||
Preferred stock, par value | $ 0.01 | ||
Preferred stock liquidation preference (per share) | 1,000 | $ 1,000 | |
Depositary share, liquidation preference equivalent (per share) | $ 25 | ||
Preferred stock, aggregate liquidation preference | $ 600 | ||
Net proceeds from issuance of preferred stock offerings | $ 581 |
Stockholders' Equity (Preferred
Stockholders' Equity (Preferred Stock Issued and Outstanding) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Sep. 30, 2015 | Aug. 03, 2015 | Dec. 31, 2014 |
Class of Stock [Line Items] | |||
Shares Issued and Outstanding | 1,485 | 885 | |
Liquidation Preference | $ 1,485 | $ 885 | |
Carrying Value | $ 1,457 | $ 872 | |
Series A Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Shares Issued and Outstanding | 400 | 400 | |
Preferred stock liquidation preference (per share) | $ 1,000 | $ 1,000 | |
Liquidation Preference | $ 400 | $ 400 | |
Carrying Value | $ 396 | $ 395 | |
Series B Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Shares Issued and Outstanding | 485 | 485 | |
Preferred stock liquidation preference (per share) | $ 1,000 | $ 1,000 | |
Liquidation Preference | $ 485 | $ 485 | |
Carrying Value | $ 479 | $ 477 | |
Series C Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Shares Issued and Outstanding | 600 | ||
Preferred stock liquidation preference (per share) | $ 1,000 | $ 1,000 | |
Liquidation Preference | $ 600 | ||
Carrying Value | $ 582 |
Accumulated Other Comprehensi57
Accumulated Other Comprehensive Income (Components of Other Comprehensive (Loss) Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Change in net unrealized gain on Securities available for sale: | ||||
Net unrealized (loss) gain | $ (249) | $ (25) | $ (233) | $ 260 |
Reclassification of impairment charges included in net impairment losses on securities | 1 | 1 | ||
Other reclassifications included in other revenue | (12) | (14) | ||
Change in net unrealized (loss) gain on securities available for sale | (249) | (36) | (233) | 247 |
Other comprehensive income (loss), before tax | (249) | (36) | (233) | 247 |
Change in net unrealized gain on Securities available for sale: | ||||
Net unrealized (loss) gain | 94 | 9 | 87 | (97) |
Reclassification of impairment charges included in net impairment losses on securities | (1) | (1) | ||
Other reclassifications included in other revenue | 5 | 5 | ||
Change in net unrealized (loss) gain on securities available for sale | 94 | 13 | 87 | (93) |
Other comprehensive (loss) income, tax effect | 94 | 13 | 87 | (93) |
Change in net unrealized gain on securities available for sale: | ||||
Net unrealized (loss) gain | (155) | (16) | (146) | 163 |
Other reclassifications included in other revenue | (7) | (9) | ||
Change in net unrealized (loss) gain on securities available for sale | (155) | (23) | (146) | 154 |
Other comprehensive income (loss), net of tax | $ (155) | $ (23) | $ (146) | $ 154 |
Accumulated Other Comprehensi58
Accumulated Other Comprehensive Income (Accumulated Other Comprehensive Income Balances) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income [Abstract] | ||||
Beginning Balance | $ 165 | $ 9 | ||
Change in net unrealized (loss) gain on securities available for sale | $ (155) | $ (23) | (146) | 154 |
Reclassification of impairment charges included in earnings | 1 | 1 | ||
Ending Balance | $ 19 | $ 163 | $ 19 | $ 163 |
Earnings Per Common Share (EPS
Earnings Per Common Share (EPS under Basic and Diluted Computations) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Earnings Per Common Share [Abstract] | |||||
Net income | $ 376 | $ 321 | $ 1,031 | $ 971 | |
Preferred stock dividends and other | [1] | (11) | (9) | (45) | (39) |
Net income available to common stockholders | $ 365 | $ 312 | $ 986 | $ 932 | |
Weighted-average common shares outstanding — basic | 1,316 | 1,304 | 1,315 | 1,302 | |
Common stock equivalent shares related to stock incentive plans | 12 | 12 | 11 | 11 | |
Weighted-average common shares outstanding — diluted | 1,328 | 1,316 | 1,326 | 1,313 | |
Basic EPS | $ 0.28 | $ 0.24 | $ 0.75 | $ 0.71 | |
Diluted EPS | $ 0.28 | $ 0.24 | $ 0.74 | $ 0.70 | |
Antidilutive stock options and restricted stock awards excluded from the calculation of diluted EPS | 14 | 12 | 16 | 18 | |
[1] | Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested restricted stock units. |
Regulatory Requirements (Narrat
Regulatory Requirements (Narrative) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Compliance with Regulatory Capital Requirements for Broker Dealers [Line Items] | |
Percentage of aggregate debit balances required as minimum net capital | 2.00% |
Net capital under the alternative method permitted by the Uniform Net Capital Rule | This method requires the maintenance of minimum net capital, as defined, of the greater of 2% of aggregate debit balances arising from client transactions or a minimum dollar requirement ($250,000), which is based on the type of business conducted by the broker-dealer. Under the alternative method, a broker-dealer may not repay subordinated borrowings, pay cash dividends, or make any unsecured advances or loans to its parent company or employees if such payment would result in a net capital amount of less than 5% of aggregate debit balances or less than 120% of its minimum dollar requirement. |
Percentage of net capital to aggregate debit balances required for a broker-dealer to repay subordinated borrowings, pay cash dividends, or make any unsecured advances or loans to its parent company or employees | 5.00% |
Percentage of net capital to the Company's minimum dollar requirement required for a broker-dealer to repay subordinated borrowings, pay cash dividends, or make any unsecured advances or loans to its parent company or employees | 120.00% |
Description of Net Capital Requirements under Commodity Exchange Act | optionsXpress, Inc. is also subject to Commodity Futures Trading Commission Regulation 1.17 (Reg. 1.17) under the Commodity Exchange Act, which also requires the maintenance of minimum net capital. optionsXpress, Inc., as a futures commission merchant, is required to maintain minimum net capital equal to the greater of its net capital requirement under Reg. 1.17 ($1 million), or the sum of 8% of the total risk margin requirements for all positions carried in client accounts and 8% of the total risk margin requirements for all positions carried in non-client accounts (as defined in Reg. 1.17). |
Net capital required for optionsXpress, Inc. under Reg 1.17 of the Commodity Exchange Act | $ 1,000 |
Minimum percentage of the total risk margin requirements for all positions carried in customer accounts to be added to the minimum percentage of the total risk margin requirements for all positions carried in non-customer accounts for optionsXpress, Inc. minimum net capital calculation | 8.00% |
Minimum percentage of the total risk margin requirements for all positions carried in non-customer accounts to be added to the minimum percentage of the total risk margin requirements for all positions carried in customer accounts for optionsXpress, Inc. minimum net capital calculation | 8.00% |
Schwab [Member] | |
Compliance with Regulatory Capital Requirements for Broker Dealers [Line Items] | |
Minimum capital requirement | $ 250 |
Regulatory Requirements (Regula
Regulatory Requirements (Regulatory Capital and Ratios) (Details) $ in Millions | Sep. 30, 2015USD ($) |
CSC [Member] | |
Common Equity Tier 1 Risk-Based Capital | |
Actual Amount | $ 10,490 |
Minimum Capital Requirement | $ 2,585 |
Actual Ratio | 18.30% |
Minimum Capital Requirement Ratio | 4.50% |
Tier 1 Risk-Based Capital | |
Actual Amount | $ 11,947 |
Minimum Capital Requirement Amount | $ 3,446 |
Actual Ratio | 20.80% |
Minimum Capital Requirement Ratio | 6.00% |
Total Risk-Based Capital | |
Actual Amount | $ 11,979 |
Minimum Capital Requirement Amount | $ 4,595 |
Actual Ratio | 20.90% |
Minimum Capital Requirement Ratio | 8.00% |
Tier 1 Leverage | |
Actual Amount | $ 11,947 |
Minimum Capital Requirement Amount | $ 6,592 |
Actual Ratio | 7.30% |
Minimum Capital Requirement Ratio | 4.00% |
Schwab Bank [Member] | |
Common Equity Tier 1 Risk-Based Capital | |
Actual Amount | $ 8,830 |
Minimum to be Well Capitalized | 3,240 |
Minimum Capital Requirement | $ 2,243 |
Actual Ratio | 17.70% |
Minimum to be Well Capitalized Ratio | 6.50% |
Minimum Capital Requirement Ratio | 4.50% |
Tier 1 Risk-Based Capital | |
Actual Amount | $ 8,830 |
Minimum to be Well Capitalized Amount | 3,988 |
Minimum Capital Requirement Amount | $ 2,991 |
Actual Ratio | 17.70% |
Minimum to be Well Capitalized Ratio | 8.00% |
Minimum Capital Requirement Ratio | 6.00% |
Total Risk-Based Capital | |
Actual Amount | $ 8,861 |
Minimum to be Well Capitalized Amount | 4,985 |
Minimum Capital Requirement Amount | $ 3,988 |
Actual Ratio | 17.80% |
Minimum to be Well Capitalized Ratio | 10.00% |
Minimum Capital Requirement Ratio | 8.00% |
Tier 1 Leverage | |
Actual Amount | $ 8,830 |
Minimum to be Well Capitalized Amount | 6,247 |
Minimum Capital Requirement Amount | $ 4,997 |
Actual Ratio | 7.10% |
Minimum to be Well Capitalized Ratio | 5.00% |
Minimum Capital Requirement Ratio | 4.00% |
Regulatory Requirements (Net Ca
Regulatory Requirements (Net Capital and Net Capital Requirements for Schwab and optionsXpress, Inc) (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Schwab [Member] | |
Compliance with Regulatory Capital Requirements for Broker Dealers [Line Items] | |
Net Capital | $ 1,755,000 |
% of Aggregate Debit Balances | 9.00% |
Minimum Net Capital Required | $ 250 |
2% of Aggregate Debit Balances | 371,000 |
Net Capital in Excess of Required Net Capital | 1,384,000 |
Net Capital in Excess of 5% of Aggregate Debit Balances | 828,000 |
OptionsXpress, Inc. [Member] | |
Compliance with Regulatory Capital Requirements for Broker Dealers [Line Items] | |
Net Capital | $ 242,000 |
% of Aggregate Debit Balances | 58.00% |
Minimum Net Capital Required | $ 1,000 |
2% of Aggregate Debit Balances | 8,000 |
Net Capital in Excess of Required Net Capital | 234,000 |
Net Capital in Excess of 5% of Aggregate Debit Balances | $ 221,000 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2015segment | |
Segment Information [Abstract] | |
Number of reportable segments | 2 |
Segment Information (Financial
Segment Information (Financial Information for Reportable Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Net Revenues | |||||
Asset management and administration fees | $ 663 | $ 649 | $ 1,977 | $ 1,892 | |
Net interest revenue | 635 | 573 | 1,835 | 1,688 | |
Trading revenue | 228 | 209 | 658 | 668 | |
Other | 66 | 120 | 208 | 253 | |
Provision for loan losses | 5 | 1 | 11 | 7 | |
Net impairment losses on securities | [1] | (1) | (1) | ||
Total net revenues | 1,597 | 1,551 | 4,689 | 4,507 | |
Expenses Excluding Interest | 1,014 | 1,033 | 3,055 | 2,946 | |
Income before taxes on income | 583 | 518 | 1,634 | 1,561 | |
Investor Services [Member] | |||||
Net Revenues | |||||
Asset management and administration fees | 470 | 455 | 1,398 | 1,324 | |
Net interest revenue | 533 | 513 | 1,568 | 1,512 | |
Trading revenue | 151 | 144 | 437 | 460 | |
Other | 47 | 57 | 149 | 155 | |
Provision for loan losses | 4 | 1 | 10 | 6 | |
Net impairment losses on securities | (1) | (1) | |||
Total net revenues | 1,205 | 1,169 | 3,562 | 3,456 | |
Expenses Excluding Interest | 772 | 741 | 2,336 | 2,213 | |
Income before taxes on income | 433 | 428 | 1,226 | 1,243 | |
Advisor Services [Member] | |||||
Net Revenues | |||||
Asset management and administration fees | 193 | 194 | 579 | 568 | |
Net interest revenue | 102 | 60 | 267 | 176 | |
Trading revenue | 77 | 65 | 221 | 208 | |
Other | 19 | 18 | 59 | 53 | |
Provision for loan losses | 1 | 1 | 1 | ||
Total net revenues | 392 | 337 | 1,127 | 1,006 | |
Expenses Excluding Interest | 242 | 224 | 719 | 665 | |
Income before taxes on income | $ 150 | 113 | $ 408 | 341 | |
Unallocated [Member] | |||||
Net Revenues | |||||
Other | 45 | 45 | |||
Total net revenues | 45 | 45 | |||
Expenses Excluding Interest | 68 | 68 | |||
Income before taxes on income | $ (23) | $ (23) | |||
[1] | There were no net impairment losses on securities for the three or nine months ended September 30, 2015. Net impairment losses on securities include total other-than-temporary impairment losses of $1 million recognized in other comprehensive income, net of $0 reclassified from other comprehensive income, for the three and nine months ended September 30, 2014. |