Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
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 | 1,349,185,040 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | |||
Net Revenues | ||||
Interest revenue | $ 1,421 | $ 1,055 | ||
Interest expense | (158) | (55) | ||
Net interest revenue | 1,263 | 1,000 | ||
Asset management and administration fees | 851 | 823 | ||
Trading revenue | 201 | 192 | ||
Other | 83 | 66 | ||
Total net revenues | 2,398 | 2,081 | ||
Expenses Excluding Interest | ||||
Compensation and benefits | 770 | 701 | ||
Professional services | 156 | 133 | ||
Occupancy and equipment | 122 | 105 | ||
Advertising and market development | 73 | 71 | ||
Communications | 62 | 57 | ||
Depreciation and amortization | 73 | 65 | [1] | |
Regulatory fees and assessments | 51 | 44 | ||
Other | 89 | 62 | ||
Total expenses excluding interest | 1,396 | 1,238 | ||
Income before taxes on income | 1,002 | 843 | ||
Taxes on income | 219 | 279 | ||
Net Income | 783 | 564 | [1] | |
Preferred stock dividends and other | [2] | 37 | 39 | |
Net Income Available to Common Stockholders | $ 746 | $ 525 | ||
Weighted-Average Common Shares Outstanding: | ||||
Basic (shares) | 1,347 | 1,336 | ||
Diluted (shares) | [3] | 1,362 | 1,351 | |
Earnings Per Common Share: | ||||
Basic (USD per share) | $ 0.55 | $ 0.39 | ||
Diluted (USD per share) | 0.55 | 0.39 | ||
Dividends Declared Per Common Share (USD per share) | $ 0.10 | $ 0.08 | ||
[1] | Adjusted for the retrospective adoption of ASU 2016-18. See Note 2. | |||
[2] | Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested restricted stock units. | |||
[3] | Antidilutive stock options and restricted stock units excluded from the calculation of diluted EPS totaled 11 million and 10 million shares for the first quarters of 2018 and 2017, respectively. |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 783 | $ 564 | [1] |
Change in net unrealized gain (loss) on available for sale securities: | |||
Net unrealized gain (loss) | (108) | 52 | |
Reclassification of net unrealized loss transferred to held to maturity | 0 | 227 | |
Other reclassifications included in other revenue | 0 | (1) | |
Change in net unrealized gain (loss) on held to maturity securities: | |||
Reclassification of net unrealized loss transferred from available for sale | 0 | (227) | |
Amortization of amounts previously recorded upon transfer from available for sale | 9 | 2 | |
Other | 0 | (3) | |
Other comprehensive income (loss), before tax | (99) | 50 | |
Income tax effect | 24 | (19) | |
Other comprehensive income (loss), net of tax | (75) | 31 | |
Comprehensive Income | $ 708 | $ 595 | |
[1] | Adjusted for the retrospective adoption of ASU 2016-18. See Note 2. |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 14,145 | $ 14,217 |
Cash and investments segregated and on deposit for regulatory purposes (including resale agreements of $4,434 at March 31, 2018 and $6,596 at December 31, 2017) | 12,823 | 15,139 |
Receivables from brokers, dealers, and clearing organizations | 894 | 649 |
Receivables from brokerage clients — net | 21,153 | 20,576 |
Other securities owned — at fair value | 500 | 539 |
Available for sale securities | 51,827 | 49,995 |
Held to maturity securities (fair value — $123,463 at March 31, 2018 and $120,373 at December 31, 2017) | 125,683 | 120,926 |
Bank loans — net | 16,389 | 16,478 |
Equipment, office facilities, and property — net | 1,540 | 1,471 |
Goodwill | 1,227 | 1,227 |
Intangible assets — net | 101 | 108 |
Other assets | 2,038 | 1,949 |
Total assets | 248,320 | 243,274 |
Liabilities and Stockholders’ Equity | ||
Bank deposits | 190,184 | 169,656 |
Payables to brokers, dealers, and clearing organizations | 1,122 | 1,287 |
Payables to brokerage clients | 31,088 | 31,243 |
Accrued expenses and other liabilities | 2,468 | 2,810 |
Short-term borrowings | 0 | 15,000 |
Long-term debt | 4,128 | 4,753 |
Total liabilities | 228,990 | 224,749 |
Stockholders’ equity: | ||
Preferred stock — $.01 par value per share; aggregate liquidation preference of $2,850 at March 31, 2018 and December 31, 2017 | 2,793 | 2,793 |
Common stock — 3 billion shares authorized; $.01 par value per share; 1,487,543,446 shares issued | 15 | 15 |
Additional paid-in capital | 4,397 | 4,353 |
Retained earnings | 15,222 | 14,408 |
Treasury stock, at cost — 139,326,005 shares at March 31, 2018 and 142,210,890 shares at December 31, 2017 | (2,837) | (2,892) |
Accumulated other comprehensive income (loss) | (260) | (152) |
Total stockholders’ equity | 19,330 | 18,525 |
Total liabilities and stockholders’ equity | $ 248,320 | $ 243,274 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Cash and investments segregated and on deposit for regulatory purposes, resale agreements | $ 4,434 | $ 6,596 |
Held to maturity securities | $ 123,463 | $ 120,373 |
Preferred stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, aggregate liquidation preference | $ 2,850 | $ 2,850 |
Common stock, shares authorized (shares) | 3,000,000,000 | 3,000,000,000 |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (shares) | 1,487,543,446 | 1,487,543,446 |
Treasury stock (shares) | 139,326,005 | 142,210,890 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Stockholders' Equity Statement - USD ($) shares in Millions, $ in Millions | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock, at cost [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | |
Beginning balance at Dec. 31, 2016 | $ 16,421 | $ 2,783 | $ 15 | $ 4,267 | $ 12,649 | $ (3,130) | $ (163) | |
Beginning balance (shares) at Dec. 31, 2016 | 1,488 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 564 | [1] | 564 | |||||
Other comprehensive income (loss), net of tax | 31 | 31 | ||||||
Dividends declared on preferred stock | (37) | (37) | ||||||
Dividends declared on common stock | (107) | (107) | ||||||
Stock option exercises and other | 58 | (23) | 81 | |||||
Share-based compensation and related tax effects | 49 | 49 | ||||||
Other | 3 | 7 | 0 | (4) | ||||
Ending balance (shares) at Mar. 31, 2017 | 1,488 | |||||||
Ending balance at Mar. 31, 2017 | 16,982 | 2,783 | $ 15 | 4,300 | 13,069 | (3,053) | (132) | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Adoption of accounting standards (Note 2) | Accounting Standards Update 2014-09 and 2018-02 [Member] | 167 | 200 | (33) | |||||
Beginning balance at Dec. 31, 2017 | 18,525 | 2,793 | $ 15 | 4,353 | 14,408 | (2,892) | (152) | |
Beginning balance (shares) at Dec. 31, 2017 | 1,488 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 783 | 783 | ||||||
Other comprehensive income (loss), net of tax | (75) | (75) | ||||||
Dividends declared on preferred stock | (34) | (34) | ||||||
Dividends declared on common stock | (135) | (135) | ||||||
Stock option exercises and other | 49 | (12) | 61 | |||||
Share-based compensation and related tax effects | 47 | 47 | ||||||
Other | 3 | 9 | (6) | |||||
Ending balance (shares) at Mar. 31, 2018 | 1,488 | |||||||
Ending balance at Mar. 31, 2018 | $ 19,330 | $ 2,793 | $ 15 | $ 4,397 | $ 15,222 | $ (2,837) | $ (260) | |
[1] | Adjusted for the retrospective adoption of ASU 2016-18. See Note 2. |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | [1] | |
Cash Flows from Operating Activities | |||
Net income | $ 783 | $ 564 | |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||
Share-based compensation | 50 | 52 | |
Depreciation and amortization | 73 | 65 | |
Premium amortization, net, on available for sale securities and held to maturity securities | 96 | 72 | |
Other | 36 | 12 | |
Net change in: | |||
Investments segregated and on deposit for regulatory purposes | 853 | (550) | |
Receivables from brokers, dealers, and clearing organizations | (245) | 11 | |
Receivables from brokerage clients | (595) | 424 | |
Other securities owned | 39 | (115) | |
Other assets | (16) | 4 | |
Payables to brokers, dealers, and clearing organizations | (325) | (346) | |
Payables to brokerage clients | (155) | (1,627) | |
Accrued expenses and other liabilities | (346) | (143) | |
Net cash provided by (used for) operating activities | 248 | (1,577) | |
Cash Flows from Investing Activities | |||
Purchases of available for sale securities | (4,631) | (1,992) | |
Proceeds from sales of available for sale securities | 0 | 1,064 | |
Principal payments on available for sale securities | 2,695 | 3,067 | |
Purchases of held to maturity securities | (8,235) | (9,301) | |
Principal payments on held to maturity securities | 3,548 | 1,731 | |
Net change in bank loans | 74 | (134) | |
Purchases of equipment, office facilities, and property | (122) | (80) | |
Proceeds from sales of Federal Home Loan Bank stock | 172 | 64 | |
Other investing activities | (40) | (6) | |
Net cash provided by (used for) investing activities | (6,539) | (5,587) | |
Cash Flows from Financing Activities | |||
Net change in bank deposits | 20,528 | 3,435 | |
Net change in short-term borrowings | (15,000) | 600 | |
Issuance of long-term debt | 0 | 643 | |
Repayment of long-term debt | (627) | (2) | |
Dividends paid | (184) | (158) | |
Proceeds from stock options exercised and other | 49 | 58 | |
Other financing activities | (10) | (8) | |
Net cash provided by (used for) financing activities | 4,756 | 4,568 | |
Increase (Decrease) in Cash and Cash Equivalents, including Amounts Restricted | (1,535) | (2,596) | |
Cash and Cash Equivalents, including Amounts Restricted at Beginning of Period | 19,160 | 17,873 | |
Cash and Cash Equivalents, including Amounts Restricted at End of Period | 17,625 | 15,277 | |
Supplemental Cash Flow Information | |||
Interest | 169 | 75 | |
Income taxes | 3 | 8 | |
Non-cash investing activity: | |||
Securities purchased during the period but settled after period end | $ 160 | $ 581 | |
[1] | Adjusted for the retrospective adoption of ASU 2016-18. See Note 2. |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 | [1] |
Reconciliation of cash, cash equivalents and amounts reported within the balance sheet | |||
Cash and cash equivalents | $ 14,145 | $ 9,475 | |
Restricted cash and cash equivalents amounts included in Cash and investments segregated and on deposit for regulatory purposes | 3,480 | 5,802 | |
Total cash and cash equivalents, including amounts restricted shown in the statement of cash flows | $ 17,625 | $ 15,277 | |
[1] | Adjusted for the retrospective adoption of ASU 2016-18. See Note 2. |
Introduction and Basis of Prese
Introduction and Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Introduction and Basis of Presentation | Introduction and Basis of Presentation The Charles Schwab Corporation (CSC) is a savings and loan holding company engaged, through its subsidiaries, in wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. Significant business subsidiaries of CSC include the following: • Charles Schwab & Co., Inc. (CS&Co), a securities broker-dealer; • Charles Schwab Bank (CSB), a federal savings bank; and • Charles Schwab Investment Management, Inc. (CSIM), the investment advisor for Schwab’s proprietary mutual funds (Schwab Funds ® ) and Schwab’s exchange-traded funds (Schwab ETFs™). Unless otherwise indicated, the terms “Schwab,” “the Company,” “we,” “us,” or “our” mean CSC together with its consolidated subsidiaries. These unaudited condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the U.S. (GAAP), which require management to make certain estimates and assumptions that affect the reported amounts in the accompanying financial statements, and in the related disclosures. These estimates are based on information available as of the date of the condensed consolidated financial statements. While management makes its best judgment, actual amounts or results could differ from these estimates. In the opinion of management, all normal, recurring adjustments have been included for a fair statement of this interim financial information. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto, included in Schwab’s 2017 Form 10-K. The significant accounting policies are included in Note 2 in the 2017 Form 10-K. There have been no significant changes to these accounting policies during the first three months of 2018 , except as described in Note 2 below. Principles of Consolidation Schwab evaluates all entities in which it has financial interests for consolidation, except for money market funds, which are specifically excluded from consolidation guidance. When an entity is evaluated for consolidation, Schwab determines whether its interest in the entity constitutes a controlling financial interest under either the variable interest entity (VIE) model or a voting interest entity (VOE) model. In evaluating whether Schwab’s interest in a VIE is a controlling financial interest, we consider whether our involvement, in the context of the design, purpose, and risks of the VIE, as well as any involvement of related parties, provides us with (i) the power to direct the most significant activities of the VIE, and (ii) the obligation to absorb losses or receive benefits that are significant to the VIE. If both of these conditions exist, then Schwab would be the primary beneficiary of that VIE, and consolidate it. Based upon the assessments for all of our interests in VIEs, there are no cases where Schwab is the primary beneficiary; therefore, we are not required to consolidate any VIEs. Schwab consolidates all VOEs in which it has majority-voting interests. Investments in entities in which Schwab does not have a controlling financial interest are accounted for under the equity method of accounting when we have the ability to exercise significant influence over operating and financing decisions of the entity. Investments in entities for which Schwab does not have the ability to exercise significant influence are generally carried at cost and adjusted for impairment and observable price changes of the identical or similar investments of the same issuer (adjusted cost method), except for certain investments in qualified affordable housing projects which are accounted for under the proportional amortization method. All equity method, adjusted cost method, and proportional amortization method investments are included in other assets on the condensed consolidated balance sheets. |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | New Accounting Standards Adoption of New Accounting Standards Standard Description Date of Adoption Effects on the Financial Statements or Other Significant Matters Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers (Topic 606)” and related ASUs Clarifies that revenue from contracts with clients 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. January 1, 2018 The guidance does not apply to revenue earned from the Company’s loans and securities. Accordingly, net interest revenue was not impacted. The primary impact for the Company was the capitalization on the consolidated balance sheets of sales commissions paid to employees for obtaining new contracts with clients. These capitalized costs resulted in an asset of $219 million and a related deferred tax liability of $52 million upon adoption. The asset is being amortized to expense over time as the related revenues are recognized. ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10)” and ASU 2018-03, “Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10)” Requires: (i) equity investments to be measured at fair value, with changes in fair value recognized in net income, unless the equity method is applied or the equity investments do not have readily determinable fair values in which case a practical alternative may be elected; (ii) use of an exit price when measuring the fair value of financial instruments for disclosures; (iii) separate presentation of financial assets and liabilities by measurement category and form of instrument on the balance sheet or in the accompanying notes. January 1, 2018 The Company adopted this guidance on a prospective basis for its equity securities that do not have readily determinable fair values. No other significant changes resulted from adoption. Therefore, there was no material impact on the Company’s financial statements. Standard Description Date of Adoption Effects on the Financial Statements or Other Significant Matters ASU 2016-18, “Statement of Cash Flows (Topic 230) - Restricted Cash a Consensus of the Emerging Issues Task Force” Requires that the statement of cash flows explain the change during the period in the total cash and cash equivalents, including restricted cash and cash equivalents. January 1, 2018 The Company adopted this guidance on a retrospective basis. The Company has significant amounts of restricted cash and cash equivalents due to its business as a broker-dealer. ASU 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” Permits reclassification of the impacts on certain tax affected items included in AOCI that were adjusted through income from continuing operations rather than AOCI upon the effective date of the Tax Act. January 1, 2018 The Company early adopted this guidance as of the beginning of the quarter. The Company elected to reclassify the income tax effects of the Tax Act from items in AOCI into retained earnings. New Accounting Standards Not Yet Adopted Standard Description Required Date of Adoption Effects on the Financial Statements or Other Significant Matters ASU 2016-02, “Leases (Topic 842)” Amends the accounting for leases by lessees and lessors. The primary change from the new guidance is the recognition of right-of-use assets and lease liabilities by lessees for those leases classified as operating leases. Additional changes include accounting for lease origination and executory costs, required lessee reassessments during the lease term due to changes in circumstances, and expanded lease disclosures. January 1, 2019 The Company does not expect this guidance will have a material impact on its earnings per common share (EPS), but it will result in a gross up of the consolidated balance sheets due to recognition of right-of-use assets and lease liabilities based on the present value of remaining operating lease payments (see Note 13 in the 2017 10-K for the undiscounted rental commitments for operating leases). The Company is evaluating its adoption method due to a recently proposed ASU that provides an alternative adoption method. The Company is refining its methodology to estimate the right of use assets and lease liabilities and working on system updates to apply the lease accounting changes. The full population of contracts that may be subject to balance sheet recognition is still being evaluated, and is nearly complete. The Company has further work to perform related to disclosures. Standard Description Required Date of Adoption Effects on the Financial Statements or Other Significant Matters ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” Provides guidance for recognizing impairment of most debt instruments measured at amortized cost, including loans and held to maturity (HTM) debt securities. Requires estimating current expected credit losses (CECL) over the remaining life of an instrument or a portfolio of instruments with similar risk characteristics based on relevant information about past events, current conditions, and reasonable forecasts. The initial estimate of, and the subsequent changes in, CECL will be recognized as credit loss expense through current earnings and will be reflected as an allowance for credit losses offsetting the carrying value of the financial instrument(s) on the balance sheet. Amends the OTTI model for available for sale (AFS) debt securities by requiring the use of an allowance, rather than directly reducing the carrying value of the security, and eliminating consideration of the length of time such security has been in an unrealized loss position as a factor in concluding whether a credit loss exists. January 1, 2020 (early adoption permitted) The Company is currently evaluating the impact of this guidance on its financial statements, including EPS. Initial implementation work performed to date has focused on evaluating the Company’s impacted assets, including loans and investment securities. The Company has also been evaluating its current data and system capabilities and considering additional data sources and system enhancements. Additional work to be completed includes an in-depth analysis for each impacted asset type, selection of methods, and changes to policies and procedures. ASU 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities” Shortens the amortization period for the premium on certain callable debt securities to the earliest call date. The amendments are applicable to any purchased individual debt security with an explicit and noncontingent call feature with a fixed price on a preset date. ASU 2017-08 does not impact the accounting for callable debt securities held at a discount. January 1, 2019 (early adoption permitted) The Company is currently evaluating the impact of adopting this guidance on its financial statements, including EPS. The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of ASU 2014-09, “Revenue – Revenue from Contracts with Customers and ASU 2018-02, “Other Comprehensive Income – Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” were as follows: Balance at Adjustments Due to ASU 2014-09 Adjustments Due to ASU 2018-02 Balance at Assets Other assets (1) $ 1,949 $ 167 $ — $ 2,116 Stockholders ’ Equity Retained earnings 14,408 167 33 14,608 Accumulated other comprehensive income (152 ) — (33 ) (185 ) (1) Adjustment is comprised of an increase in capitalized contract costs of $219 million , partially offset by an increase in deferred tax liabilities of $52 million . In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on our condensed consolidated statement of income and condensed consolidated balance sheet were as follows: Three Months Ended March 31, 2018 Statement of Income As Reported Balances Without Adoption of ASU 2014-09 Effect of Change Expenses Excluding Interest Compensation and benefits $ 770 $ 781 $ (11 ) Taxes on income 219 216 3 Net Income 783 775 8 As of March 31, 2018 Balance Sheet As Reported Balances Without Adoption of ASU 2014-09 Effect of Change Assets Other assets (1) $ 2,038 $ 1,863 $ 175 Stockholders’ Equity Retained earnings 15,222 15,047 175 (1) Adjustment is comprised of an increase in capitalized contract costs of $230 million , partially offset by an increase in deferred tax liabilities of $55 million . |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregated Revenue Disaggregation of Schwab’s revenue by major source is as follows: Three Months Ended 2018 2017 Net interest revenue Interest revenue $ 1,421 $ 1,055 Interest expense (158 ) (55 ) Net interest revenue 1,263 1,000 Asset management and administration fees Mutual funds and ETF service fees 493 506 Advice Solutions 282 244 Other 76 73 Asset management and administration fees 851 823 Trading revenue Commissions 189 178 Principal transactions 12 14 Trading revenue 201 192 Other 83 66 Total net revenues $ 2,398 $ 2,081 For a summary of revenue provided by our reportable segments, see Note 17. The recognition of revenue is not impacted by the operating segment in which revenue is generated. Schwab does not have any significant contract balances as of March 31, 2018. Net interest revenue Net interest revenue, which is generated from financial instruments covered by various other areas of GAAP, is not within the scope of ASU 2014-09, and is included in the table above in order to reconcile to total net revenues per the condensed consolidated statement of income. Net interest revenue is the difference between interest generated on interest earning assets and interest paid on funding sources. Our primary interest earning assets include cash and cash equivalents; segregated cash and investments; margin loans, which constitute the majority of receivables from brokerage clients; investment securities; and bank loans. Revenue on interest earning assets is affected by various factors, such as the composition of assets, prevailing interest rates at the time of origination or purchase, changes in interest rates on floating rate securities, and changes in prepayment levels for mortgage related securities and loans. Fees earned on securities borrowing and lending activities, which are conducted by CS&Co on assets held in client brokerage accounts, are included in other interest revenue and expense. Asset management and administration fees The majority of asset management and administration fees are generated through our proprietary and third-party mutual fund and ETF offerings, as well as fee-based advisory solutions. Mutual fund and ETF service fees are charged for investment management, shareholder, and administration services provided to Schwab Funds ® and Schwab ETFs™, as well as recordkeeping, shareholder, and administration services provided to third-party funds. Advice Solutions fees are charged for brokerage and asset management services provided to Advice Solutions clients. Both Mutual fund and ETF service fees and Advice Solution fees are earned and recognized over time. Fees are generally based on a percentage of the daily value of assets under management and are collected on a monthly or quarterly basis. Trading revenue Substantially all trading revenue is generated through commissions earned for executing trades for clients in individual equities, options, fixed income securities, and certain third-party mutual funds and ETFs. This revenue is earned and collected at a point-in-time which is consistent with the timing that the trade execution services are performed. Other revenue Other revenue includes order flow revenue, other service fees, software fees from our portfolio management solutions, exchange processing fees, and nonrecurring gains. Generally, the most significant portion of other revenue is order flow revenue, which are payments received from execution venues to which CS&Co sends equity and option orders. Order flow revenue is recognized at the point-in-time that the trades are executed. Capitalized contract costs Deferred contract costs relate to sales commissions paid to employees for obtaining contracts with clients and are included in Other assets in the condensed consolidated balance sheets. These costs are amortized to expense on a straight-line basis over a period that is consistent with how the related revenue is recognized. At March 31, 2018 and January 1, 2018, we had $230 million and $219 million of deferred contract costs, respectively. Amortization expense related to deferred contract costs was $11 million for the first quarter of 2018 , which was recorded in Compensation and benefits expense. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The amortized cost, gross unrealized gains and losses, and fair value of AFS and HTM securities are as follows: March 31, 2018 Amortized Gross Gross Fair Available for sale securities: U.S. agency mortgage-backed securities $ 21,077 $ 49 $ 65 $ 21,061 U.S. Treasury securities 10,964 — 137 10,827 Asset-backed securities (1) 9,622 25 11 9,636 Corporate debt securities (2) 6,546 12 6 6,552 Certificates of deposit 1,790 2 1 1,791 U.S. agency notes 1,565 — 8 1,557 Commercial paper (2) 315 — — 315 Foreign government agency securities 50 — 2 48 Non-agency commercial mortgage-backed securities 40 — — 40 Total available for sale securities $ 51,969 $ 88 $ 230 $ 51,827 Held to maturity securities: U.S. agency mortgage-backed securities $ 103,967 $ 82 $ 2,377 $ 101,672 Asset-backed securities (1) 14,625 126 7 14,744 Corporate debt securities (2) 4,340 8 44 4,304 U.S. state and municipal securities 1,245 20 3 1,262 Non-agency commercial mortgage-backed securities 1,033 3 19 1,017 U.S. Treasury securities 223 — 8 215 Certificates of deposit 200 — — 200 Foreign government agency securities 50 — 1 49 Total held to maturity securities $ 125,683 $ 239 $ 2,459 $ 123,463 December 31, 2017 Available for sale securities: U.S. agency mortgage-backed securities $ 20,915 $ 53 $ 39 $ 20,929 U.S. Treasury securities 9,583 — 83 9,500 Asset-backed securities (1) 9,019 34 6 9,047 Corporate debt securities (2) 6,154 16 1 6,169 Certificates of deposit 2,040 2 1 2,041 U.S. agency notes 1,914 — 8 1,906 Commercial paper (2) 313 — — 313 Foreign government agency securities 51 — 1 50 Non-agency commercial mortgage-backed securities 40 — — 40 Total available for sale securities $ 50,029 $ 105 $ 139 $ 49,995 Held to maturity securities: U.S. agency mortgage-backed securities $ 101,197 $ 290 $ 1,034 $ 100,453 Asset-backed securities (1) 12,937 127 2 13,062 Corporate debt securities (2) 4,078 13 5 4,086 U.S. state and municipal securities 1,247 57 — 1,304 Non-agency commercial mortgage-backed securities 994 10 5 999 U.S. Treasury securities 223 — 3 220 Certificates of deposit 200 — — 200 Foreign government agency securities 50 — 1 49 Total held to maturity securities $ 120,926 $ 497 $ 1,050 $ 120,373 (1) Approximately 40 % and 42 % of Asset-backed securities held as of March 31, 2018 and December 31, 2017, respectively, were Federal Family Education Loan Program Asset-Backed Securities. Asset-backed securities collateralized by credit card receivables represented approximately 42 % and 40 % of the asset-backed securities held as of March 31, 2018 and December 31, 2017, respectively. (2) As of March 31, 2018 and December 31, 2017, approximately 38 % and 41 %, respectively, of the total AFS and HTM investments in Corporate debt securities and Commercial paper were issued by institutions in the financial services industry. Approximately 22 % of the holdings of these securities were issued by institutions in the information technology industry as of both March 31, 2018 and December 31, 2017. At March 31, 2018 , CSB had pledged securities with a fair value of $23.0 billion as collateral to secure borrowing capacity on a secured credit facility with the Federal Home Loan Bank of San Francisco (FHLB) (see Note 8). CSB also pledges certain investment securities as collateral to secure borrowing capacity at the Federal Reserve Bank discount window, and had pledged securities with a fair value of $2.5 billion as collateral for this facility at March 31, 2018 . CSB also pledges securities issued by federal agencies to secure certain trust deposits. The fair value of these pledged securities was $906 million at March 31, 2018 . Securities with unrealized losses, aggregated by category and period of continuous unrealized loss, are as follows: Less than 12 months 12 months or longer Total March 31, 2018 Fair Unrealized Fair Unrealized Fair Unrealized Available for sale securities: U.S. agency mortgage-backed securities $ 6,308 $ 52 $ 2,339 $ 13 $ 8,647 $ 65 U.S. Treasury securities 5,522 45 5,305 92 10,827 137 Asset-backed securities 1,594 7 422 4 2,016 11 Corporate debt securities 1,503 6 20 — 1,523 6 Certificates of deposit 1,019 1 — — 1,019 1 U.S. agency notes — — 1,557 8 1,557 8 Foreign government agency securities 48 2 — — 48 2 Total $ 15,994 $ 113 $ 9,643 $ 117 $ 25,637 $ 230 Held to maturity securities: U.S. agency mortgage-backed securities $ 60,892 $ 1,166 $ 24,742 $ 1,211 $ 85,634 $ 2,377 Asset-backed securities 1,249 7 100 — 1,349 7 Corporate debt securities 2,743 44 — — 2,743 44 U.S. state and municipal securities 96 3 — — 96 3 Non-agency commercial mortgage-backed securities 764 19 — — 764 19 U.S. Treasury securities 215 8 — — 215 8 Foreign government agency securities 49 1 — — 49 1 Total $ 66,008 $ 1,248 $ 24,842 $ 1,211 $ 90,850 $ 2,459 Total securities with unrealized losses (1) $ 82,002 $ 1,361 $ 34,485 $ 1,328 $ 116,487 $ 2,689 December 31, 2017 Available for sale securities: U.S. agency mortgage-backed securities $ 5,696 $ 21 $ 2,548 $ 18 $ 8,244 $ 39 U.S. Treasury securities 4,625 11 4,875 72 9,500 83 Asset-backed securities 904 3 424 3 1,328 6 Corporate debt securities 736 1 120 — 856 1 Certificates of deposit 799 1 — — 799 1 U.S. agency notes 99 — 1,807 8 1,906 8 Foreign government agency securities 50 1 — — 50 1 Total $ 12,909 $ 38 $ 9,774 $ 101 $ 22,683 $ 139 Held to maturity securities: U.S. agency mortgage-backed securities $ 42,102 $ 310 $ 24,753 $ 724 $ 66,855 $ 1,034 Asset-backed securities 1,124 2 72 — 1,196 2 Corporate debt securities 1,078 5 — — 1,078 5 Non-agency commercial mortgage-backed securities 607 5 — — 607 5 U.S. Treasury securities 220 3 — — 220 3 Foreign government agency securities 49 1 — — 49 1 Total $ 45,180 $ 326 $ 24,825 $ 724 $ 70,005 $ 1,050 Total securities with unrealized losses (2) $ 58,089 $ 364 $ 34,599 $ 825 $ 92,688 $ 1,189 (1) The number of investment positions with unrealized losses totaled 314 for AFS securities and 1,353 for HTM securities. (2) The number of investment positions with unrealized losses totaled 251 for AFS securities and 938 for HTM securities. At March 31, 2018 , substantially all securities in the investment portfolios were rated investment grade. U.S. agency mortgage-backed securities do not have explicit credit ratings; however, management considers these to be of the highest credit quality and rating given the guarantee of principal and interest by the U.S. government or U.S. government-sponsored enterprises. Management evaluates whether investment securities are other-than-temporarily impaired (OTTI) on a quarterly basis as described in Note 2 in the 2017 Form 10-K. No amounts were recognized as OTTI in earnings or other comprehensive income in 2018 or 2017. As of March 31, 2018 and December 31, 2017 , Schwab did not hold any securities on which OTTI was previously recognized. The maturities of AFS and HTM securities are as follows: March 31, 2018 Within After 1 year After 5 years After Total Available for sale securities: U.S. agency mortgage-backed securities (1) $ 35 $ 3,454 $ 7,846 $ 9,726 $ 21,061 U.S. Treasury securities 2,441 8,386 — — 10,827 Asset-backed securities 250 7,844 959 583 9,636 Corporate debt securities 3,183 3,369 — — 6,552 Certificates of deposit 772 1,019 — — 1,791 U.S. agency notes 1,310 247 — — 1,557 Commercial paper 315 — — — 315 Foreign government agency securities — 48 — — 48 Non-agency commercial mortgage-backed securities (1) — — — 40 40 Total fair value $ 8,306 $ 24,367 $ 8,805 $ 10,349 $ 51,827 Total amortized cost $ 8,315 $ 24,480 $ 8,819 $ 10,355 $ 51,969 Held to maturity securities: U.S. agency mortgage-backed securities (1) $ 418 $ 13,032 $ 30,343 $ 57,879 $ 101,672 Asset-backed securities — 1,046 7,356 6,342 14,744 Corporate debt securities 351 3,368 585 — 4,304 U.S. state and municipal securities — — 173 1,089 1,262 Non-agency commercial mortgage-backed securities (1) — 355 — 662 1,017 U.S. Treasury securities — — 215 — 215 Certificates of deposit — 200 — — 200 Foreign government agency securities — 49 — — 49 Total fair value $ 769 $ 18,050 $ 38,672 $ 65,972 $ 123,463 Total amortized cost $ 771 $ 18,270 $ 39,171 $ 67,471 $ 125,683 (1) Mortgage-backed securities have been allocated to maturity groupings based on final contractual maturities. Actual maturities will differ from final contractual maturities because borrowers on a certain portion of loans underlying these securities have the right to prepay their obligations. Proceeds and gross realized gains and losses from sales of AFS securities are as follows: Three Months Ended 2018 2017 Proceeds $ — $ 1,064 Gross realized gains — 1 |
Bank Loans and Related Allowanc
Bank Loans and Related Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Bank Loans and Related Allowance for Loan Losses | Bank Loans and Related Allowance for Loan Losses The composition of bank loans and delinquency analysis by loan type is as follows: March 31, 2018 Current 30-59 days 60-89 days >90 days past (3) Total past due Total Allowance Total First Mortgages (1,2) $ 10,041 $ 15 $ 3 $ 19 $ 37 $ 10,078 $ 17 $ 10,061 HELOCs (1,2) 1,781 4 1 10 15 1,796 7 1,789 Pledged asset lines 4,360 1 1 — 2 4,362 — 4,362 Other 180 — — — — 180 3 177 Total bank loans $ 16,362 $ 20 $ 5 $ 29 $ 54 $ 16,416 $ 27 $ 16,389 December 31, 2017 First Mortgages (1,2) $ 9,983 $ 14 $ 2 $ 17 $ 33 $ 10,016 $ 16 $ 10,000 HELOCs (1,2) 1,928 — 3 12 15 1,943 8 1,935 Pledged asset lines 4,361 4 4 — 8 4,369 — 4,369 Other 176 — — — — 176 2 174 Total bank loans $ 16,448 $ 18 $ 9 $ 29 $ 56 $ 16,504 $ 26 $ 16,478 (1) First Mortgages and HELOCs include unamortized premiums and discounts and direct origination costs of $75 million and $77 million at March 31, 2018 and December 31, 2017 , respectively. (2) At March 31, 2018 and December 31, 2017 , 48% of the First Mortgage and HELOC portfolios were concentrated in California. These loans have performed in a manner consistent with the portfolio as a whole. (3) There were no loans accruing interest that were contractually 90 days or more past due at March 31, 2018 or December 31, 2017 . At March 31, 2018 , CSB had pledged $11.1 billion of First Mortgages and HELOCs as collateral to secure borrowing capacity on a secured credit facility with the FHLB (see Note 8). Substantially all of the bank loans were collectively evaluated for impairment at March 31, 2018 and December 31, 2017 . Changes in the allowance for loan losses were as follows: March 31, 2018 March 31, 2017 First Mortgages HELOCs Other Total (1) First Mortgages HELOCs Other Total (1) Balance at beginning of period $ 16 $ 8 $ 2 $ 26 $ 17 $ 8 $ 1 $ 26 Provision for loan losses 1 (1 ) 1 1 — — — — Balance at end of period $ 17 $ 7 $ 3 $ 27 $ 17 $ 8 $ 1 $ 26 (1) All pledged asset lines (PALs) were fully collateralized by securities with fair values in excess of borrowings at March 31, 2018 and December 31, 2017 . A summary of impaired bank loan related assets is as follows: March 31, 2018 December 31, 2017 Nonaccrual loans (1) $ 29 $ 28 Other real estate owned (2) 2 3 Total nonperforming assets 31 31 Troubled debt restructurings 8 11 Total impaired assets $ 39 $ 42 (1) Nonaccrual loans include nonaccrual troubled debt restructurings. (2) Included in Other assets on the condensed consolidated balance sheets. Credit Quality In addition to monitoring delinquency, Schwab monitors the credit quality of First Mortgages and HELOCs by stratifying the portfolios by the following: • Year of origination; • Borrower FICO scores at origination (Origination FICO); • Updated borrower FICO scores (Updated FICO); • Loan-to-value (LTV) ratios at origination (Origination LTV); and • Estimated current LTV ratios (Estimated Current LTV). Borrowers’ FICO scores are provided by an independent third-party credit reporting service and were last updated in March 2018. The Origination LTV and Estimated Current LTV for a HELOC include any first lien mortgage outstanding on the same property at the time of the HELOC’s origination. The Estimated Current LTV for each loan is estimated by reference to a home price appreciation index. The credit quality indicators of the Company’s bank loan portfolio are detailed below: March 31, 2018 Balance Weighted Average Utilization (1) Percent of First Mortgages: Estimated Current LTV < 70% $ 9,114 778 N/A 0.08 % >70% – < 90% 955 770 N/A 0.58 % >90% – < 100% 6 713 N/A 6.11 % >100% 3 738 N/A 7.67 % Total $ 10,078 777 N/A 0.13 % HELOCs: Estimated Current LTV (2) < 70% $ 1,639 773 31 % 0.17 % >70% – < 90% 139 757 45 % 0.86 % >90% – < 100% 11 746 68 % 1.47 % >100% 7 714 72 % 8.46 % Total $ 1,796 771 32 % 0.26 % Pledged asset lines: Weighted-Average LTV (2) =70% $ 4,362 767 39 % — December 31, 2017 Balance Weighted Average Utilization (1) Percent of First Mortgages: Estimated Current LTV < 70% $ 9,046 775 N/A 0.09 % >70% – < 90% 961 769 N/A 0.46 % >90% – < 100% 5 714 N/A 10.49 % >100% 4 713 N/A 6.23 % Total $ 10,016 775 N/A 0.14 % HELOCs: Estimated Current LTV (2) < 70% $ 1,773 772 32 % 0.18 % >70% – < 90% 148 755 47 % 0.84 % >90% – < 100% 14 742 64 % 2.85 % >100% 8 718 72 % 4.91 % Total $ 1,943 770 33 % 0.27 % Pledged asset lines: Weighted-Average LTV (2) =70% $ 4,369 765 41 % — (1) The Utilization Rate is calculated using the outstanding balance divided by the associated total line of credit. (2) Represents the LTV for the full line of credit (drawn and undrawn). N/A Not applicable. March 31, 2018 First Mortgages HELOCs Year of origination Pre-2014 $ 2,570 $ 1,364 2014 499 105 2015 1,167 115 2016 2,813 101 2017 2,556 97 2018 473 14 Total $ 10,078 $ 1,796 Origination FICO <620 $ 6 $ 1 620 – 679 90 9 680 – 739 1,564 339 > 740 8,418 1,447 Total $ 10,078 $ 1,796 Origination LTV < 70% $ 7,627 $ 1,257 >70% – < 90% 2,445 530 >90% – < 100% 6 9 Total $ 10,078 $ 1,796 December 31, 2017 First Mortgages HELOCs Year of origination Pre-2014 $ 2,804 $ 1,496 2014 530 116 2015 1,218 128 2016 2,886 111 2017 2,578 92 Total $ 10,016 $ 1,943 Origination FICO <620 $ 6 $ 1 620 – 679 89 10 680 – 739 1,569 365 > 740 8,352 1,567 Total $ 10,016 $ 1,943 Origination LTV < 70% $ 7,569 $ 1,360 >70% – < 90% 2,441 574 >90% – < 100% 6 9 Total $ 10,016 $ 1,943 At March 31, 2018 , First Mortgage loans of $9.1 billion had adjustable interest rates. These mortgages have initial fixed interest rates for three to ten years and interest rates that adjust annually thereafter. Approximately 33% of the balance of these mortgages consisted of loans with interest-only payment terms. The interest rates on approximately 60% of the balance of these interest-only loans are not scheduled to reset for three or more years. Schwab’s mortgage loans do not include interest terms described as temporary introductory rates below current market rates. The HELOC product has a 30 -year loan term with an initial draw period of ten years from the date of origination. After the initial draw period, the balance outstanding at such time is converted to a 20 -year amortizing loan. The interest rate during the initial draw period, and the 20 -year amortizing period, is a floating rate based on the prime rate plus a margin. HELOCs that convert to an amortizing loan may experience higher delinquencies, and higher loss rates, than those in the initial draw period. The allowance for loan loss methodology takes this increased inherent risk into consideration. The following table presents when current outstanding HELOCs will convert to amortizing loans: March 31, 2018 Balance Converted to an amortizing loan by period end $ 451 Within 1 year 495 > 1 year – 3 years 168 > 3 years – 5 years 145 > 5 years 537 Total $ 1,796 At March 31, 2018 , $1.4 billion of the HELOC portfolio was secured by second liens on the associated properties. Second lien mortgage loans typically possess a higher degree of credit risk given the subordination to the first lien holder in the event of default. In addition to the credit monitoring activities described previously, Schwab also monitors credit risk by reviewing the delinquency status of the first lien loan on the associated property. At March 31, 2018 , the borrowers on approximately 36% of HELOC loan balances outstanding only paid the minimum amount due. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2018 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities As of March 31, 2018 and December 31, 2017 , all of Schwab’s involvement with variable interest entities (VIEs) is through CSB’s Community Reinvestment Act-related investments and most of those related to LIHTC investments. As part of CSB’s community reinvestment initiatives, CSB invests with other institutional investors in funds that make equity investments in multifamily affordable housing properties. CSB receives tax credits and other tax benefits for these investments. CSB’s LIHTC investments are accounted for using the proportional amortization method, which amortizes the cost of the investment over the period in which the investor expects to receive tax credits and other tax benefits, and the resulting amortization is included in taxes on income on the consolidated statements of income. Aggregate assets, liabilities, and maximum exposure to loss The aggregate assets, liabilities, and maximum exposure to loss from those VIEs in which Schwab holds a variable interest, but as to which we have concluded it is not the primary beneficiary, are summarized in the table below: March 31, 2018 December 31, 2017 Aggregate Aggregate Maximum Aggregate Aggregate Maximum LIHTC investments (1) $ 340 $ 217 $ 340 $ 304 $ 203 $ 304 Other CRA investments (2) 67 — 122 69 — 125 Total $ 407 $ 217 $ 462 $ 373 $ 203 $ 429 (1) Aggregate assets and aggregate liabilities are included in other assets and accrued expenses and other liabilities, respectively, on the condensed consolidated balance sheets. (2) Other CRA investments are recorded using either the adjusted cost method, equity method, or as HTM securities. Aggregate assets are included in other assets, HTM securities, or bank loans – net on the condensed consolidated balance sheets. Schwab’s maximum exposure to loss would result from the loss of the investments, including any committed amounts. During the three months ended March 31, 2018 and 2017 , Schwab did not provide or intend to provide financial or other support to the VIEs that it was not contractually required to provide. CSB’s funding of these remaining commitments is dependent upon the occurrence of certain conditions, and CSB expects to pay substantially all of these commitments between 2018 and 2021 . |
Bank Deposits
Bank Deposits | 3 Months Ended |
Mar. 31, 2018 | |
Banking and Thrift [Abstract] | |
Bank Deposits | Bank Deposits Bank deposits consist of interest-bearing and non-interest-bearing deposits as follows: March 31, 2018 December 31, 2017 Interest-bearing deposits: Deposits swept from brokerage accounts $ 168,854 $ 148,212 Checking 13,530 13,388 Savings and other 6,925 7,264 Total interest-bearing deposits 189,309 168,864 Non-interest-bearing deposits 875 792 Total bank deposits $ 190,184 $ 169,656 |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings CSC’s Senior Notes are unsecured obligations and rank equally with the other unsecured senior debt. CSC may redeem some or all of the Senior Notes of each series prior to their maturity, subject to certain restrictions, and the payment of an applicable make-whole premium in certain instances. Interest is payable semi-annually for the Senior Notes. The following table lists long-term debt by instrument outstanding as of March 31, 2018 and December 31, 2017 . Date of Issuance Principal Amount Outstanding March 31, 2018 December 31, 2017 Fixed-rate Senior Notes: 1.500% due March 10, 2018 (1) 03/10/15 $ — $ 625 2.200% due July 25, 2018 07/25/13 275 275 4.450% due July 22, 2020 07/22/10 700 700 3.225% due September 1, 2022 08/29/12 256 256 2.650% due January 25, 2023 12/07/17 800 800 3.000% due March 10, 2025 03/10/15 375 375 3.450% due February 13, 2026 11/13/15 350 350 3.200% due March 2, 2027 03/02/17 650 650 3.200% due January 25, 2028 12/07/17 700 700 Total fixed-rate Senior Notes 4,106 4,731 5.450% Finance lease obligation (2) 06/04/04 59 61 Unamortized discount — net (14 ) (14 ) Debt issuance costs (23 ) (25 ) Total long-term debt $ 4,128 $ 4,753 (1) Redeemed on February 8, 2018. (2) Schwab has a finance lease obligation related to an office building and land under a 20 -year lease. The remaining finance lease obligation is being reduced by a portion of the lease payments over the remaining lease term through June 30, 2024. Annual maturities on long-term debt outstanding at March 31, 2018 are as follows: 2018 $ 281 2019 8 2020 709 2021 9 2022 266 Thereafter 2,892 Total maturities 4,165 Unamortized discount — net (14 ) Debt issuance costs (23 ) Total long-term debt $ 4,128 Short-term borrowings: CSB maintains a secured credit facility with the FHLB. Amounts available under this facility are dependent on the value of CSB’s First Mortgages, HELOCs, and the fair value of certain of CSB’s investment securities that are pledged as collateral. As of March 31, 2018 , the collateral pledged by CSB provided a total borrowing capacity of $31.4 billion of which no amounts were outstanding. As of December 31, 2017 , the collateral pledged by CSB provided a total borrowing capacity $32.3 billion , of which $15.0 billion , was outstanding. As a condition of the FHLB borrowings, CSB is required to hold FHLB stock, with the investment recorded in other assets on the condensed consolidated balance sheets. The investment in FHLB was $233 million at March 31, 2018 and $405 million at December 31, 2017 . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Loan Portfolio: CSB provides a co-branded loan origination program for CSB clients (the Program) with Quicken Loans, Inc. (Quicken Loans ® ). Pursuant to the Program, Quicken Loans originates and services First Mortgages and HELOCs for CSB clients. Under the Program, CSB purchases certain First Mortgages and HELOCs that are originated by Quicken Loans. CSB purchased First Mortgages of $513 million and $665 million during the first quarters of 2018 and 2017 , respectively. Schwab purchased HELOCs with commitments of $107 million and $118 million during the first quarters of 2018 and 2017 , respectively. The Company’s commitments to extend credit on bank lines of credit and to purchase First Mortgages are as follows: March 31, 2018 December 31, 2017 Commitments to extend credit related to unused HELOCs, PALs, and other lines of credit $ 10,555 $ 10,060 Commitments to purchase First Mortgage loans 377 308 Total $ 10,932 $ 10,368 Guarantees and indemnifications: Schwab has clients that sell (i.e., write) listed option contracts that are cleared by the Options Clearing Corporation – a clearing house that establishes margin requirements on these transactions. We partially satisfy the margin requirements by arranging unsecured standby letter of credit agreements (LOCs), in favor of the Options Clearing Corporation, which are issued by several banks. At March 31, 2018 , the aggregate face amount of these LOCs totaled $225 million . There were no funds drawn under any of these LOCs at March 31, 2018 . In connection with its securities lending activities, Schwab is required to provide collateral to certain brokerage clients. The Company satisfies the collateral requirements by providing cash as collateral. Schwab also provides guarantees to securities clearing houses and exchanges under standard membership agreements, which require members to guarantee the performance of other members. Under the agreements, if another member becomes unable to satisfy its obligations to the clearing houses and exchanges, other members would be required to meet shortfalls. Schwab’s liability under these arrangements is not quantifiable and may exceed the cash and securities it has posted as collateral. The potential requirement for the Company to make payments under these arrangements is remote. Accordingly, no liability has been recognized for these guarantees. Legal contingencies: Schwab is subject to claims and lawsuits in the ordinary course of business, including arbitrations, class actions and other litigation, some of which include claims for substantial or unspecified damages. The Company is also the subject of inquiries, investigations, and proceedings by regulatory and other governmental agencies. Predicting the outcome of a litigation or regulatory matter is inherently difficult, requiring significant judgment and evaluation of various factors, including the procedural status of the matter and any recent developments; prior experience and the experience of others in similar cases; available defenses, including potential opportunities to dispose of a case on the merits or procedural grounds before trial (e.g., motions to dismiss or for summary judgment); the progress of fact discovery; the opinions of counsel and experts regarding potential damages; potential opportunities for settlement and the status of any settlement discussions; and potential insurance coverage and indemnification. It may not be reasonably possible to estimate a range of potential liability until the matter is closer to resolution – pending, for example, further proceedings, the outcome of key motions or appeals, or discussions among the parties. Numerous issues may have to be developed, such as discovery of important factual matters and determination of threshold legal issues, which may include novel or unsettled questions of law. Reserves are established or adjusted or further disclosure and estimates of potential loss are provided as the matter progresses and more information becomes available. Schwab believes it has strong defenses in all significant matters currently pending and is contesting liability and any damages claimed. Nevertheless, some of these matters may result in adverse judgments or awards, including penalties, injunctions or other relief, and the Company may also determine to settle a matter because of the uncertainty and risks of litigation. Described below are 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. Total Bond Market Fund Litigation : On August 28, 2008, a class action lawsuit was filed in the U.S. District Court for the Northern District of California on behalf of investors in the Schwab Total Bond Market Fund ™ . The lawsuit, which alleged violations of state law and federal securities law in connection with the fund’s investment policy, named CSIM, Schwab Investments (registrant and issuer of the fund’s shares), and certain current and former fund trustees as defendants. Allegations include that the fund improperly deviated from its stated investment objectives by investing in collateralized mortgage obligations (CMOs) and investing more than 25% of fund assets in CMOs and mortgage-backed securities without obtaining a fundholder vote. Plaintiff seeks unspecified compensatory and rescission damages, unspecified equitable and injunctive relief, costs, and attorneys’ fees on behalf of a putative class of investors who held shares as of August 31, 2007, and a putative class of investors who purchased the shares between September 1, 2017 and February 27, 2009. Plaintiff’s federal securities law claim and certain of plaintiff’s state law claims were dismissed. On August 8, 2011, the court dismissed plaintiff’s remaining claims with prejudice. Plaintiff appealed to the Ninth Circuit, which issued a ruling on March 9, 2015 reversing the district court’s dismissal of the case and remanding the case for further proceedings. Plaintiff filed a fourth amended complaint on June 25, 2015, and in decisions issued October 6, 2015 and February 23, 2016, the court dismissed all claims with prejudice. Plaintiff has appealed to the Ninth Circuit, where the case remains pending. Crago Order Routing Litigation : On July 13, 2016, a securities class action lawsuit was filed in the U.S. District Court for the Northern District of California on behalf of a putative class of customers executing equity orders through CS&Co. The lawsuit names CS&Co and CSC as defendants and alleges that an agreement under which CS&Co routed orders to UBS Securities LLC between July 13, 2011 and December 31, 2014 violated CS&Co’s duty to seek best execution. Plaintiffs seek unspecified damages, interest, injunctive and equitable relief, and attorneys’ fees and costs. After a first amended complaint was dismissed with leave to amend, plaintiffs filed a second amended complaint on August 14, 2017. Defendants again moved to dismiss, and in a decision issued December 5, 2017, the court denied the motion. Defendants have answered the complaint to deny all allegations, and intend to vigorously contest the lawsuit. |
Financial Instruments Subject t
Financial Instruments Subject to Off-Balance Sheet Credit Risk | 3 Months Ended |
Mar. 31, 2018 | |
Offsetting [Abstract] | |
Financial Instruments Subject to Off-Balance Sheet Credit Risk | Financial Instruments Subject to Off-Balance Sheet Credit Risk Resale agreements: Schwab enters into collateralized resale agreements principally with other broker-dealers, which could result in losses in the event the counterparty fails to purchase the securities held as collateral for the cash advanced and the fair value of the securities declines. To mitigate this risk, Schwab requires that the counterparty deliver securities to a custodian, to be held as collateral, with a fair value at or in excess of the resale price. Schwab also sets standards for the credit quality of the counterparty, monitors the fair value of the underlying securities as compared to the related receivable, including accrued interest, and requires additional collateral where deemed appropriate. The collateral provided under these resale agreements is utilized to meet obligations under broker-dealer client protection rules, which place limitations on our ability to access such segregated securities. For Schwab to repledge or sell this collateral, 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. Schwab’s resale agreements are not subject to master netting arrangements. Securities lending: Schwab loans brokerage client securities temporarily to other brokers and clearing houses in connection with its securities lending activities and receives cash as collateral for the securities loaned. Increases in security prices may cause the fair value of the securities loaned to exceed the amount of cash received as collateral. In the event the counterparty to these transactions does not return the loaned securities or provide additional cash collateral, we may be exposed to the risk of acquiring the securities at prevailing market prices in order to satisfy our client obligations. Schwab mitigates this risk by requiring credit approvals for counterparties, monitoring the fair value of securities loaned, and requiring additional cash as collateral when necessary. We also borrow securities from other broker-dealers to fulfill short sales by brokerage clients and deliver cash to the lender in exchange for the securities. The fair value of these borrowed securities was $237 million and $215 million at March 31, 2018 and December 31, 2017 , respectively. All of our securities lending transactions are through a program with a clearing organization, which guarantees the return of cash to us and is subject to enforceable master netting arrangements with other broker-dealers; however, we do not net securities lending transactions. Therefore, the securities loaned and securities borrowed are presented gross in the condensed consolidated balance sheets. The following table presents information about our resale agreements and securities lending activity depicting the potential effect of rights of setoff between these recognized assets and recognized liabilities at March 31, 2018 and December 31, 2017 . Gross Amounts Not Offset in the Gross Gross Amounts Net Amounts Counterparty Collateral Net March 31, 2018 Assets: Resale agreements (1) $ 4,434 $ — $ 4,434 $ — $ (4,434 ) (2) $ — Securities borrowed (3) 241 — 241 (172 ) (68 ) 1 Total $ 4,675 $ — $ 4,675 $ (172 ) $ (4,502 ) $ 1 Liabilities: Securities loaned (4,5) $ 800 $ — $ 800 $ (172 ) $ (558 ) $ 70 Total $ 800 $ — $ 800 $ (172 ) $ (558 ) $ 70 December 31, 2017 Assets: Resale agreements (1) $ 6,596 $ — $ 6,596 $ — $ (6,596 ) (2) $ — Securities borrowed (3) 222 — 222 (199 ) (22 ) 1 Total $ 6,818 $ — $ 6,818 $ (199 ) $ (6,618 ) $ 1 Liabilities: Securities loaned (4,5) $ 966 $ — $ 966 $ (199 ) $ (670 ) $ 97 Total $ 966 $ — $ 966 $ (199 ) $ (670 ) $ 97 (1) Included in cash and investments segregated and on deposit for regulatory purposes in the condensed consolidated balance sheets. (2) Actual collateral was greater than or equal to 102% of the related assets. At March 31, 2018 and December 31, 2017 , the fair value of collateral received in connection with resale agreements that are available to be repledged or sold was $4.5 billion and $6.7 billion , respectively. (3) Included in receivables from brokers, dealers, and clearing organizations in the condensed consolidated balance sheets. (4) Included in payables to brokers, dealers, and clearing organizations in the condensed consolidated balance sheets. The cash collateral received from counterparties under securities lending transactions was equal to or greater than the market value of the securities loaned at March 31, 2018 and December 31, 2017 . (5) Securities loaned are predominantly comprised of equity securities held in client brokerage accounts with overnight and continuous remaining contractual maturities. Margin lending: Clients with margin loans have agreed to allow Schwab to pledge collateralized securities in their brokerage accounts in accordance with federal regulations. The following table summarizes the fair value of client securities that were available, under such regulations, that could have been used as collateral, and the amounts that we had pledged: March 31, 2018 December 31, 2017 Fair value of client securities available to be pledged $ 27,296 $ 25,905 Fair value of client securities pledged for: Fulfillment of requirements with the Options Clearing Corporation (1) 3,368 2,280 Fulfillment of client short sales 1,713 2,011 Securities lending to other broker-dealers 653 784 Total collateral pledged $ 5,734 $ 5,075 Note: Excludes amounts available and pledged for securities lending from fully-paid client securities. The fair value of fully-paid client securities available and pledged was $74 million as of March 31, 2018 and $78 million as of December 31, 2017 . (1) Client securities pledged to fulfill client margin requirements for open option contracts established with the Options Clearing Corporation. |
Fair Values of Assets and Liabi
Fair Values of Assets and Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Assets and Liabilities | Fair Values of Assets and Liabilities Assets and liabilities measured at fair value on a recurring basis Schwab’s assets and liabilities measured at fair value on a recurring basis include certain cash equivalents, certain investments segregated and on deposit for regulatory purposes, other securities owned, and AFS securities. The Company uses the market approach to determine the fair value of assets and liabilities. When available, the Company uses quoted prices in active markets to measure the fair value of assets and liabilities. When utilizing market data and bid-ask spread, the Company uses the price within the bid-ask spread that best represents fair value. When quoted prices do not exist, the Company uses prices obtained from independent third-party pricing services to measure the fair value of investment assets. We generally obtain prices from at least three independent pricing sources for assets recorded at fair value. Our 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. We compare the prices obtained from the primary independent pricing service to the prices obtained from the additional independent pricing sources to determine if the price obtained from the primary independent pricing service is reasonable. Schwab does not adjust the prices received from independent third-party pricing services unless such prices are inconsistent with the definition of fair value and result in a material difference in the recorded amounts. For a description of the fair value hierarchy and Schwab’s fair value methodologies, including the use of independent third-party pricing services, see Note 2 in the 2017 Form 10-K. We did not transfer any assets or liabilities between Level 1, Level 2, or Level 3 during the three months ended March 31, 2018 , or the year ended December 31, 2017 . In addition, the Company did not adjust prices received from the primary independent third-party pricing service at March 31, 2018 or December 31, 2017 . Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables present the fair value hierarchy for assets measured at fair value on a recurring basis. Liabilities recorded at fair value were not material, and therefore are not included in the following tables: March 31, 2018 Quoted Prices Significant Significant Balance at Cash equivalents: Money market funds $ 1,049 $ — $ — $ 1,049 Total cash equivalents 1,049 — — 1,049 Investments segregated and on deposit for regulatory purposes: Certificates of deposit — 2,147 — 2,147 U.S. Government securities — 3,661 — 3,661 Total investments segregated and on deposit for regulatory purposes — 5,808 — 5,808 Other securities owned: Equity and bond mutual funds 371 — — 371 Schwab Funds ® money market funds 59 — — 59 State and municipal debt obligations — 36 — 36 Equity, U.S. Government and corporate debt, and other securities 2 32 — 34 Total other securities owned 432 68 — 500 Available for sale securities: U.S. agency mortgage-backed securities — 21,061 — 21,061 U.S. Treasury securities — 10,827 — 10,827 Asset-backed securities — 9,636 — 9,636 Corporate debt securities — 6,552 — 6,552 Certificates of deposit — 1,791 — 1,791 U.S. agency notes — 1,557 — 1,557 Commercial paper — 315 — 315 Foreign government agency securities — 48 — 48 Non-agency commercial mortgage-backed securities — 40 — 40 Total available for sale securities — 51,827 — 51,827 Total $ 1,481 $ 57,703 $ — $ 59,184 December 31, 2017 Quoted Prices Significant Significant Balance at Cash equivalents: Money market funds $ 2,727 $ — $ — $ 2,727 Total cash equivalents 2,727 — — 2,727 Investments segregated and on deposit for regulatory purposes: Certificates of deposit — 2,198 — 2,198 U.S. Government securities — 3,658 — 3,658 Total investments segregated and on deposit for regulatory purposes — 5,856 — 5,856 Other securities owned: Equity and bond mutual funds 318 — — 318 Schwab Funds ® money market funds 135 — — 135 State and municipal debt obligations — 52 — 52 Equity, U.S. Government and corporate debt, and other securities 2 32 — 34 Total other securities owned 455 84 — 539 Available for sale securities: U.S. agency mortgage-backed securities — 20,929 — 20,929 U.S. Treasury securities — 9,500 — 9,500 Asset-backed securities — 9,047 — 9,047 Corporate debt securities — 6,169 — 6,169 Certificates of deposit — 2,041 — 2,041 U.S. agency notes — 1,906 — 1,906 Commercial paper — 313 — 313 Foreign government agency securities — 50 — 50 Non-agency commercial mortgage-backed securities — 40 — 40 Total available for sale securities — 49,995 — 49,995 Total $ 3,182 $ 55,935 $ — $ 59,117 Fair Value of Other Financial Instruments The following tables present the fair value hierarchy for other financial instruments: March 31, 2018 Carrying Quoted Prices Significant Significant Balance at Assets: Cash and cash equivalents $ 13,096 $ — $ 13,096 $ — $ 13,096 Cash and investments segregated and on deposit for regulatory purposes 7,002 — 7,002 — 7,002 Receivables from brokers, dealers, and clearing organizations 894 — 894 — 894 Receivables from brokerage clients — net 21,144 — 21,144 — 21,144 Held to maturity securities: U.S. agency mortgage-backed securities 103,967 — 101,672 — 101,672 Asset-backed securities 14,625 — 14,744 — 14,744 Corporate debt securities 4,340 — 4,304 — 4,304 U.S. state and municipal securities 1,245 — 1,262 — 1,262 Non-agency commercial mortgage-backed securities 1,033 — 1,017 — 1,017 U.S. Treasury securities 223 — 215 — 215 Certificates of deposit 200 — 200 — 200 Foreign government agency securities 50 — 49 — 49 Total held to maturity securities 125,683 — 123,463 — 123,463 Bank loans — net: First Mortgages 10,061 — 9,865 — 9,865 HELOCs 1,789 — 1,834 — 1,834 Pledged asset lines 4,362 — 4,362 — 4,362 Other 177 — 177 — 177 Total bank loans — net 16,389 — 16,238 — 16,238 Other assets 656 — 656 — 656 Total $ 184,864 $ — $ 182,493 $ — $ 182,493 Liabilities: Bank deposits $ 190,184 $ — $ 190,184 $ — $ 190,184 Payables to brokers, dealers, and clearing organizations 1,122 — 1,122 — 1,122 Payables to brokerage clients 31,088 — 31,088 — 31,088 Accrued expenses and other liabilities 1,173 — 1,173 — 1,173 Long-term debt 4,128 — 4,077 — 4,077 Total $ 227,695 $ — $ 227,644 $ — $ 227,644 December 31, 2017 Carrying Quoted Prices Significant Significant Balance at Assets: Cash and cash equivalents $ 11,490 $ — $ 11,490 $ — $ 11,490 Cash and investments segregated and on deposit for regulatory purposes 9,277 — 9,277 — 9,277 Receivables from brokers, dealers, and clearing organizations 649 — 649 — 649 Receivables from brokerage clients — net 20,568 — 20,568 — 20,568 Held to maturity securities: U.S. agency mortgage-backed securities 101,197 — 100,453 — 100,453 Asset-backed securities 12,937 — 13,062 — 13,062 Corporate debt securities 4,078 — 4,086 — 4,086 U.S. state and municipal securities 1,247 — 1,304 — 1,304 Non-agency commercial mortgage-backed securities 994 — 999 — 999 U.S. Treasury securities 223 — 220 — 220 Certificates of deposit 200 — 200 — 200 Foreign government agency securities 50 — 49 — 49 Total held to maturity securities 120,926 — 120,373 — 120,373 Bank loans — net: First Mortgages 10,000 — 9,917 — 9,917 HELOCs 1,935 — 2,025 — 2,025 Pledged asset lines 4,369 — 4,369 — 4,369 Other 174 — 174 — 174 Total bank loans — net 16,478 — 16,485 — 16,485 Other assets 781 — 781 — 781 Total $ 180,169 $ — $ 179,623 $ — $ 179,623 Liabilities: Bank deposits $ 169,656 $ — $ 169,656 $ — $ 169,656 Payables to brokers, dealers, and clearing organizations 1,287 — 1,287 — 1,287 Payables to brokerage clients 31,243 — 31,243 — 31,243 Accrued expenses and other liabilities 1,463 — 1,463 — 1,463 Short-term borrowings 15,000 — 15,000 — 15,000 Long-term debt 4,753 — 4,811 — 4,811 Total $ 223,402 $ — $ 223,460 $ — $ 223,460 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity The Company’s preferred stock issued and outstanding is as follows: Shares Issued and Outstanding (In thousands) at Liquidation Preference Per Share Carrying Value at Dividend Rate in Effect at March 31, 2018 Earliest Redemption Date Date at Which Dividend Rate Becomes Floating Floating Annual Rate of Three-Month LIBOR plus: March 31, 2018 (1) December 31, 2017 (1) March 31, 2018 December 31, 2017 Issue Date Fixed-rate: Series C 600 600 $ 1,000 $ 585 $ 585 08/03/15 6.000 % 12/01/20 N/A N/A Series D 750 750 1,000 728 728 03/07/16 5.950 % 06/01/21 N/A N/A Fixed-to-floating-rate: Series A 400 400 1,000 397 397 01/26/12 7.000 % 02/01/22 02/01/22 4.820 % Series E 6 6 100,000 591 591 10/31/16 4.625 % 03/01/22 03/01/22 3.315 % Series F 5 5 100,000 492 492 10/31/17 5.000 % 12/01/27 12/01/27 2.575 % Total preferred stock 1,761 1,761 $ 2,793 $ 2,793 (1) Represented by depositary shares, except for Series A. N/A Not applicable. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income Accumulated other comprehensive income (AOCI) represents cumulative gains and losses that are not reflected in earnings. The components of other comprehensive income (loss) are as follows: Three Months Ended March 31, 2018 2017 Before Tax Net of Before Tax Net of Change in net unrealized gain (loss) on available for sale securities: Net unrealized gain (loss) $ (108 ) $ 26 $ (82 ) $ 52 $ (19 ) $ 33 Reclassification of net unrealized loss on securities transferred to held to maturity (1) — — — 227 (85 ) 142 Other reclassifications included in other revenue — — — (1 ) — (1 ) Change in net unrealized gain (loss) on held to maturity securities: Reclassification of net unrealized loss on securities transferred from available for sale (1) — — — (227 ) 85 (142 ) Amortization of amounts previously recorded upon transfer from available for sale 9 (2 ) 7 2 (1 ) 1 Other — — — (3 ) 1 (2 ) Other comprehensive income (loss) $ (99 ) $ 24 $ (75 ) $ 50 $ (19 ) $ 31 (1) See Note 5 in the 2017 10-K for discussion of the transfer of securities from the AFS category to the HTM category during the first quarter of 2017. AOCI balances are as follows: Total Balance at December 31, 2016 $ (163 ) Available for sale securities: Net unrealized gain (loss) 33 Reclassification of net unrealized loss on securities transferred to held to maturity 142 Other reclassifications included in other revenue (1 ) Held to maturity securities: Reclassification of net unrealized loss on securities transferred from available for sale (142 ) Amortization of amounts previously recorded upon transfer to held to maturity from available for sale 1 Other (2 ) Balance at March 31, 2017 $ (132 ) Balance at December 31, 2017 $ (152 ) Adoption of accounting standards (Note 2) (33 ) Available for sale securities: Net unrealized gain (loss) (82 ) Held to maturity securities: Amortization of amounts previously recorded upon transfer to held to maturity from available for sale 7 Balance at March 31, 2018 $ (260 ) |
Taxes on Income
Taxes on Income | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Taxes on Income | Taxes on Income On December 22, 2017, the Tax Act was signed into law. Among other things, the Tax Act lowered the federal corporate income tax rate from 35% to 21%, effective for tax years including or commencing January 1, 2018. In connection with our initial analysis of the impact of the Tax Act, Schwab’s effective tax rate for the three months ended March 31, 2018, was 21.9% compared to 33.1% for the same period in 2017. Also as a result of the Tax Act, Schwab recognized a $46 million one-time non-cash charge to taxes on income in the fourth quarter of 2017 associated with the remeasurement of net deferred tax assets and other tax adjustments related to the Tax Act. While we were able to make a reasonable estimate of the impact of the reduction in the corporate tax rate in the fourth quarter of 2017, our accounting for various elements of the Tax Act may be affected by clarifications of the Tax Act and other related analysis including, but not limited to, bonus depreciation that will allow for immediate expensing of qualified property and the state tax effect of adjustments made to federal temporary differences. As such, the impact of the Tax Act is an estimate pending further information and the analysis noted. Schwab did not record any material measurement-period adjustments related to the Tax Act during the first quarter of 2018. We are continuing to gather additional information to complete the accounting for estimated items and expect to complete the accounting within the prescribed measurement period. As of January 1, 2018, Schwab adopted new accounting guidance that decreased AOCI and increased retained earnings by $33 million for the reclassification of certain impacts of the Tax Act as described in Note 2. |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share EPS under the basic and diluted computations is as follows: Three Months Ended 2018 2017 Net income $ 783 $ 564 Preferred stock dividends and other (1) (37 ) (39 ) Net income available to common stockholders $ 746 $ 525 Weighted-average common shares outstanding — basic 1,347 1,336 Common stock equivalent shares related to stock incentive plans 15 15 Weighted-average common shares outstanding — diluted (2) 1,362 1,351 Basic EPS $ .55 $ .39 Diluted EPS $ .55 $ .39 (1) Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested restricted stock units. (2) Antidilutive stock options and restricted stock units excluded from the calculation of diluted EPS totaled 11 million and 10 million shares for the first quarters of 2018 and 2017 , respectively. |
Regulatory Requirements
Regulatory Requirements | 3 Months Ended |
Mar. 31, 2018 | |
Banking and Thrift [Abstract] | |
Regulatory Requirements | Regulatory Requirements At March 31, 2018 , Schwab and CSB met all of their respective capital requirements. The regulatory capital and ratios for CSC (consolidated) and CSB are as follows: Actual Minimum to be Minimum Capital Requirement March 31, 2018 Amount Ratio Amount Ratio Amount Ratio CSC Common Equity Tier 1 Risk-Based Capital $ 15,535 19.8 % N/A $ 3,537 4.5 % Tier 1 Risk-Based Capital 18,328 23.3 % N/A 4,717 6.0 % Total Risk-Based Capital 18,372 23.4 % N/A 6,289 8.0 % Tier 1 Leverage 18,328 7.5 % N/A 9,832 4.0 % CSB Common Equity Tier 1 Risk-Based Capital $ 14,093 20.7 % $ 4,435 6.5 % $ 3,070 4.5 % Tier 1 Risk-Based Capital 14,093 20.7 % 5,458 8.0 % 4,094 6.0 % Total Risk-Based Capital 14,121 20.7 % 6,823 10.0 % 5,458 8.0 % Tier 1 Leverage 14,093 7.0 % 10,133 5.0 % 8,107 4.0 % December 31, 2017 CSC Common Equity Tier 1 Risk-Based Capital $ 14,630 19.3 % N/A $ 3,414 4.5 % Tier 1 Risk-Based Capital 17,423 23.0 % N/A 4,552 6.0 % Total Risk-Based Capital 17,452 23.0 % N/A 6,069 8.0 % Tier 1 Leverage 17,423 7.6 % N/A 9,218 4.0 % CSB Common Equity Tier 1 Risk-Based Capital $ 13,355 20.1 % $ 4,324 6.5 % $ 2,993 4.5 % Tier 1 Risk-Based Capital 13,355 20.1 % 5,321 8.0 % 3,991 6.0 % Total Risk-Based Capital 13,382 20.1 % 6,652 10.0 % 5,321 8.0 % Tier 1 Leverage 13,355 7.1 % 9,462 5.0 % 7,569 4.0 % N/A Not applicable. At March 31, 2018 , CSB is considered well capitalized (the highest category) under its regulatory capital rules. At March 31, 2018 , both CSC’s and CSB’s capital levels exceeded the fully implemented capital conservation buffer requirement. Certain events, such as growth in bank deposits and regulatory discretion, could adversely affect our ability to meet future capital requirements. In late 2017, Schwab acquired a federal savings bank charter and changed the name to Charles Schwab Signature Bank (CSSB). At March 31, 2018, CSSB’s balance sheet consisted primarily of investment securities with total assets of $6.5 billion . CSSB is subject to similar regulatory guidelines and requirements, and seeks to maintain a Tier 1 Leverage Ratio similar to CSB. Net capital and net capital requirements for CS&Co are as follows: March 31, 2018 December 31, 2017 Net Capital $ 2,211 $ 2,118 Minimum net capital required 0.250 0.250 2% of aggregate debit balances 459 435 Net Capital in excess of required net capital $ 1,752 $ 1,683 In accordance with the SEC Customer Protection Rule, CS&Co had portions of its cash and investments segregated for the exclusive benefit of clients at March 31, 2018 . The SEC Customer Protection Rule requires broker-dealers to segregate client fully paid securities and cash balances not collateralizing margin positions and not swept to money market funds or bank deposit accounts. Amounts included in cash and investments segregated and on deposit for regulatory purposes represent actual balances on deposit. Cash and cash equivalents included in cash and investments segregated and on deposit for regulatory purposes are presented as part of Schwab’s cash balances in the consolidated statements of cash flows. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Schwab’s two reportable segments are Investor Services and Advisor Services. Schwab structures the operating segments according to its clients and the services provided to those clients. The Investor Services segment provides retail brokerage and banking services to individual investors and retirement plan services, as well as other corporate brokerage services, to businesses and their employees. The Advisor Services segment provides custodial, trading, banking, and support services, as well as retirement business services to independent RIAs, independent retirement advisors, and recordkeepers. Revenues and expenses are allocated to the two segments based on which segment services the client. Management evaluates the performance of the segments on a pre-tax basis. Segment assets and liabilities are not used for evaluating segment performance or in deciding how to allocate resources to segments. There are no revenues from transactions between the segments. Financial information for the segments is presented in the following table: Investor Services Advisor Services Total Three Months Ended March 31, 2018 2017 2018 2017 2018 2017 Net Revenues: Net interest revenue $ 957 $ 753 $ 306 $ 247 $ 1,263 $ 1,000 Asset management and administration fees 593 566 258 257 851 823 Trading revenue 127 119 74 73 201 192 Other 64 50 19 16 83 66 Total net revenues 1,741 1,488 657 593 2,398 2,081 Expenses Excluding Interest 1,042 930 354 308 1,396 1,238 Income before taxes on income $ 699 $ 558 $ 303 $ 285 $ 1,002 $ 843 |
New Accounting Standards (Polic
New Accounting Standards (Policy) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
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, asset management, custody, and financial advisory services. Significant business subsidiaries of CSC include the following: • Charles Schwab & Co., Inc. (CS&Co), a securities broker-dealer; • Charles Schwab Bank (CSB), a federal savings bank; and • Charles Schwab Investment Management, Inc. (CSIM), the investment advisor for Schwab’s proprietary mutual funds (Schwab Funds ® ) and Schwab’s exchange-traded funds (Schwab ETFs™). Unless otherwise indicated, the terms “Schwab,” “the Company,” “we,” “us,” or “our” mean CSC together with its consolidated subsidiaries. These unaudited condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the U.S. (GAAP), which require management to make certain estimates and assumptions that affect the reported amounts in the accompanying financial statements, and in the related disclosures. These estimates are based on information available as of the date of the condensed consolidated financial statements. While management makes its best judgment, actual amounts or results could differ from these estimates. In the opinion of management, all normal, recurring adjustments have been included for a fair statement of this interim financial information. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto, included in Schwab’s 2017 Form 10-K. |
Principles of Consolidation | Principles of Consolidation Schwab evaluates all entities in which it has financial interests for consolidation, except for money market funds, which are specifically excluded from consolidation guidance. When an entity is evaluated for consolidation, Schwab determines whether its interest in the entity constitutes a controlling financial interest under either the variable interest entity (VIE) model or a voting interest entity (VOE) model. In evaluating whether Schwab’s interest in a VIE is a controlling financial interest, we consider whether our involvement, in the context of the design, purpose, and risks of the VIE, as well as any involvement of related parties, provides us with (i) the power to direct the most significant activities of the VIE, and (ii) the obligation to absorb losses or receive benefits that are significant to the VIE. If both of these conditions exist, then Schwab would be the primary beneficiary of that VIE, and consolidate it. Based upon the assessments for all of our interests in VIEs, there are no cases where Schwab is the primary beneficiary; therefore, we are not required to consolidate any VIEs. Schwab consolidates all VOEs in which it has majority-voting interests. Investments in entities in which Schwab does not have a controlling financial interest are accounted for under the equity method of accounting when we have the ability to exercise significant influence over operating and financing decisions of the entity. Investments in entities for which Schwab does not have the ability to exercise significant influence are generally carried at cost and adjusted for impairment and observable price changes of the identical or similar investments of the same issuer (adjusted cost method), except for certain investments in qualified affordable housing projects which are accounted for under the proportional amortization method. All equity method, adjusted cost method, and proportional amortization method investments are included in other assets on the condensed consolidated balance sheets. |
Adoption of New Accounting Standards and New Accounting Standards Not Yet Adopted | Adoption of New Accounting Standards Standard Description Date of Adoption Effects on the Financial Statements or Other Significant Matters Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers (Topic 606)” and related ASUs Clarifies that revenue from contracts with clients 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. January 1, 2018 The guidance does not apply to revenue earned from the Company’s loans and securities. Accordingly, net interest revenue was not impacted. The primary impact for the Company was the capitalization on the consolidated balance sheets of sales commissions paid to employees for obtaining new contracts with clients. These capitalized costs resulted in an asset of $219 million and a related deferred tax liability of $52 million upon adoption. The asset is being amortized to expense over time as the related revenues are recognized. ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10)” and ASU 2018-03, “Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10)” Requires: (i) equity investments to be measured at fair value, with changes in fair value recognized in net income, unless the equity method is applied or the equity investments do not have readily determinable fair values in which case a practical alternative may be elected; (ii) use of an exit price when measuring the fair value of financial instruments for disclosures; (iii) separate presentation of financial assets and liabilities by measurement category and form of instrument on the balance sheet or in the accompanying notes. January 1, 2018 The Company adopted this guidance on a prospective basis for its equity securities that do not have readily determinable fair values. No other significant changes resulted from adoption. Therefore, there was no material impact on the Company’s financial statements. Standard Description Date of Adoption Effects on the Financial Statements or Other Significant Matters ASU 2016-18, “Statement of Cash Flows (Topic 230) - Restricted Cash a Consensus of the Emerging Issues Task Force” Requires that the statement of cash flows explain the change during the period in the total cash and cash equivalents, including restricted cash and cash equivalents. January 1, 2018 The Company adopted this guidance on a retrospective basis. The Company has significant amounts of restricted cash and cash equivalents due to its business as a broker-dealer. ASU 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” Permits reclassification of the impacts on certain tax affected items included in AOCI that were adjusted through income from continuing operations rather than AOCI upon the effective date of the Tax Act. January 1, 2018 The Company early adopted this guidance as of the beginning of the quarter. The Company elected to reclassify the income tax effects of the Tax Act from items in AOCI into retained earnings. New Accounting Standards Not Yet Adopted Standard Description Required Date of Adoption Effects on the Financial Statements or Other Significant Matters ASU 2016-02, “Leases (Topic 842)” Amends the accounting for leases by lessees and lessors. The primary change from the new guidance is the recognition of right-of-use assets and lease liabilities by lessees for those leases classified as operating leases. Additional changes include accounting for lease origination and executory costs, required lessee reassessments during the lease term due to changes in circumstances, and expanded lease disclosures. January 1, 2019 The Company does not expect this guidance will have a material impact on its earnings per common share (EPS), but it will result in a gross up of the consolidated balance sheets due to recognition of right-of-use assets and lease liabilities based on the present value of remaining operating lease payments (see Note 13 in the 2017 10-K for the undiscounted rental commitments for operating leases). The Company is evaluating its adoption method due to a recently proposed ASU that provides an alternative adoption method. The Company is refining its methodology to estimate the right of use assets and lease liabilities and working on system updates to apply the lease accounting changes. The full population of contracts that may be subject to balance sheet recognition is still being evaluated, and is nearly complete. The Company has further work to perform related to disclosures. Standard Description Required Date of Adoption Effects on the Financial Statements or Other Significant Matters ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” Provides guidance for recognizing impairment of most debt instruments measured at amortized cost, including loans and held to maturity (HTM) debt securities. Requires estimating current expected credit losses (CECL) over the remaining life of an instrument or a portfolio of instruments with similar risk characteristics based on relevant information about past events, current conditions, and reasonable forecasts. The initial estimate of, and the subsequent changes in, CECL will be recognized as credit loss expense through current earnings and will be reflected as an allowance for credit losses offsetting the carrying value of the financial instrument(s) on the balance sheet. Amends the OTTI model for available for sale (AFS) debt securities by requiring the use of an allowance, rather than directly reducing the carrying value of the security, and eliminating consideration of the length of time such security has been in an unrealized loss position as a factor in concluding whether a credit loss exists. January 1, 2020 (early adoption permitted) The Company is currently evaluating the impact of this guidance on its financial statements, including EPS. Initial implementation work performed to date has focused on evaluating the Company’s impacted assets, including loans and investment securities. The Company has also been evaluating its current data and system capabilities and considering additional data sources and system enhancements. Additional work to be completed includes an in-depth analysis for each impacted asset type, selection of methods, and changes to policies and procedures. ASU 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities” Shortens the amortization period for the premium on certain callable debt securities to the earliest call date. The amendments are applicable to any purchased individual debt security with an explicit and noncontingent call feature with a fixed price on a preset date. ASU 2017-08 does not impact the accounting for callable debt securities held at a discount. January 1, 2019 (early adoption permitted) The Company is currently evaluating the impact of adopting this guidance on its financial statements, including EPS. |
New Accounting Standards (Table
New Accounting Standards (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of New Accounting Pronouncements | The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of ASU 2014-09, “Revenue – Revenue from Contracts with Customers and ASU 2018-02, “Other Comprehensive Income – Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” were as follows: Balance at Adjustments Due to ASU 2014-09 Adjustments Due to ASU 2018-02 Balance at Assets Other assets (1) $ 1,949 $ 167 $ — $ 2,116 Stockholders ’ Equity Retained earnings 14,408 167 33 14,608 Accumulated other comprehensive income (152 ) — (33 ) (185 ) (1) Adjustment is comprised of an increase in capitalized contract costs of $219 million , partially offset by an increase in deferred tax liabilities of $52 million . In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on our condensed consolidated statement of income and condensed consolidated balance sheet were as follows: Three Months Ended March 31, 2018 Statement of Income As Reported Balances Without Adoption of ASU 2014-09 Effect of Change Expenses Excluding Interest Compensation and benefits $ 770 $ 781 $ (11 ) Taxes on income 219 216 3 Net Income 783 775 8 As of March 31, 2018 Balance Sheet As Reported Balances Without Adoption of ASU 2014-09 Effect of Change Assets Other assets (1) $ 2,038 $ 1,863 $ 175 Stockholders’ Equity Retained earnings 15,222 15,047 175 (1) Adjustment is comprised of an increase in capitalized contract costs of $230 million , partially offset by an increase in deferred tax liabilities of $55 million . |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Schwab's Revenue | Disaggregation of Schwab’s revenue by major source is as follows: Three Months Ended 2018 2017 Net interest revenue Interest revenue $ 1,421 $ 1,055 Interest expense (158 ) (55 ) Net interest revenue 1,263 1,000 Asset management and administration fees Mutual funds and ETF service fees 493 506 Advice Solutions 282 244 Other 76 73 Asset management and administration fees 851 823 Trading revenue Commissions 189 178 Principal transactions 12 14 Trading revenue 201 192 Other 83 66 Total net revenues $ 2,398 $ 2,081 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Securities Available for Sale and Securities Held to Maturity | The amortized cost, gross unrealized gains and losses, and fair value of AFS and HTM securities are as follows: March 31, 2018 Amortized Gross Gross Fair Available for sale securities: U.S. agency mortgage-backed securities $ 21,077 $ 49 $ 65 $ 21,061 U.S. Treasury securities 10,964 — 137 10,827 Asset-backed securities (1) 9,622 25 11 9,636 Corporate debt securities (2) 6,546 12 6 6,552 Certificates of deposit 1,790 2 1 1,791 U.S. agency notes 1,565 — 8 1,557 Commercial paper (2) 315 — — 315 Foreign government agency securities 50 — 2 48 Non-agency commercial mortgage-backed securities 40 — — 40 Total available for sale securities $ 51,969 $ 88 $ 230 $ 51,827 Held to maturity securities: U.S. agency mortgage-backed securities $ 103,967 $ 82 $ 2,377 $ 101,672 Asset-backed securities (1) 14,625 126 7 14,744 Corporate debt securities (2) 4,340 8 44 4,304 U.S. state and municipal securities 1,245 20 3 1,262 Non-agency commercial mortgage-backed securities 1,033 3 19 1,017 U.S. Treasury securities 223 — 8 215 Certificates of deposit 200 — — 200 Foreign government agency securities 50 — 1 49 Total held to maturity securities $ 125,683 $ 239 $ 2,459 $ 123,463 December 31, 2017 Available for sale securities: U.S. agency mortgage-backed securities $ 20,915 $ 53 $ 39 $ 20,929 U.S. Treasury securities 9,583 — 83 9,500 Asset-backed securities (1) 9,019 34 6 9,047 Corporate debt securities (2) 6,154 16 1 6,169 Certificates of deposit 2,040 2 1 2,041 U.S. agency notes 1,914 — 8 1,906 Commercial paper (2) 313 — — 313 Foreign government agency securities 51 — 1 50 Non-agency commercial mortgage-backed securities 40 — — 40 Total available for sale securities $ 50,029 $ 105 $ 139 $ 49,995 Held to maturity securities: U.S. agency mortgage-backed securities $ 101,197 $ 290 $ 1,034 $ 100,453 Asset-backed securities (1) 12,937 127 2 13,062 Corporate debt securities (2) 4,078 13 5 4,086 U.S. state and municipal securities 1,247 57 — 1,304 Non-agency commercial mortgage-backed securities 994 10 5 999 U.S. Treasury securities 223 — 3 220 Certificates of deposit 200 — — 200 Foreign government agency securities 50 — 1 49 Total held to maturity securities $ 120,926 $ 497 $ 1,050 $ 120,373 (1) Approximately 40 % and 42 % of Asset-backed securities held as of March 31, 2018 and December 31, 2017, respectively, were Federal Family Education Loan Program Asset-Backed Securities. Asset-backed securities collateralized by credit card receivables represented approximately 42 % and 40 % of the asset-backed securities held as of March 31, 2018 and December 31, 2017, respectively. (2) As of March 31, 2018 and December 31, 2017, approximately 38 % and 41 %, respectively, of the total AFS and HTM investments in Corporate debt securities and Commercial paper were issued by institutions in the financial services industry. Approximately 22 % of the holdings of these securities were issued by institutions in the information technology industry as of both March 31, 2018 and December 31, 2017. |
Securities with Unrealized Losses, Aggregated by Category and Period of Continuous Unrealized Loss | Securities with unrealized losses, aggregated by category and period of continuous unrealized loss, are as follows: Less than 12 months 12 months or longer Total March 31, 2018 Fair Unrealized Fair Unrealized Fair Unrealized Available for sale securities: U.S. agency mortgage-backed securities $ 6,308 $ 52 $ 2,339 $ 13 $ 8,647 $ 65 U.S. Treasury securities 5,522 45 5,305 92 10,827 137 Asset-backed securities 1,594 7 422 4 2,016 11 Corporate debt securities 1,503 6 20 — 1,523 6 Certificates of deposit 1,019 1 — — 1,019 1 U.S. agency notes — — 1,557 8 1,557 8 Foreign government agency securities 48 2 — — 48 2 Total $ 15,994 $ 113 $ 9,643 $ 117 $ 25,637 $ 230 Held to maturity securities: U.S. agency mortgage-backed securities $ 60,892 $ 1,166 $ 24,742 $ 1,211 $ 85,634 $ 2,377 Asset-backed securities 1,249 7 100 — 1,349 7 Corporate debt securities 2,743 44 — — 2,743 44 U.S. state and municipal securities 96 3 — — 96 3 Non-agency commercial mortgage-backed securities 764 19 — — 764 19 U.S. Treasury securities 215 8 — — 215 8 Foreign government agency securities 49 1 — — 49 1 Total $ 66,008 $ 1,248 $ 24,842 $ 1,211 $ 90,850 $ 2,459 Total securities with unrealized losses (1) $ 82,002 $ 1,361 $ 34,485 $ 1,328 $ 116,487 $ 2,689 December 31, 2017 Available for sale securities: U.S. agency mortgage-backed securities $ 5,696 $ 21 $ 2,548 $ 18 $ 8,244 $ 39 U.S. Treasury securities 4,625 11 4,875 72 9,500 83 Asset-backed securities 904 3 424 3 1,328 6 Corporate debt securities 736 1 120 — 856 1 Certificates of deposit 799 1 — — 799 1 U.S. agency notes 99 — 1,807 8 1,906 8 Foreign government agency securities 50 1 — — 50 1 Total $ 12,909 $ 38 $ 9,774 $ 101 $ 22,683 $ 139 Held to maturity securities: U.S. agency mortgage-backed securities $ 42,102 $ 310 $ 24,753 $ 724 $ 66,855 $ 1,034 Asset-backed securities 1,124 2 72 — 1,196 2 Corporate debt securities 1,078 5 — — 1,078 5 Non-agency commercial mortgage-backed securities 607 5 — — 607 5 U.S. Treasury securities 220 3 — — 220 3 Foreign government agency securities 49 1 — — 49 1 Total $ 45,180 $ 326 $ 24,825 $ 724 $ 70,005 $ 1,050 Total securities with unrealized losses (2) $ 58,089 $ 364 $ 34,599 $ 825 $ 92,688 $ 1,189 (1) The number of investment positions with unrealized losses totaled 314 for AFS securities and 1,353 for HTM securities. (2) The number of investment positions with unrealized losses totaled 251 for AFS securities and 938 for HTM securities. |
Maturities of Securities Available for Sale and Securities Held to Maturity | The maturities of AFS and HTM securities are as follows: March 31, 2018 Within After 1 year After 5 years After Total Available for sale securities: U.S. agency mortgage-backed securities (1) $ 35 $ 3,454 $ 7,846 $ 9,726 $ 21,061 U.S. Treasury securities 2,441 8,386 — — 10,827 Asset-backed securities 250 7,844 959 583 9,636 Corporate debt securities 3,183 3,369 — — 6,552 Certificates of deposit 772 1,019 — — 1,791 U.S. agency notes 1,310 247 — — 1,557 Commercial paper 315 — — — 315 Foreign government agency securities — 48 — — 48 Non-agency commercial mortgage-backed securities (1) — — — 40 40 Total fair value $ 8,306 $ 24,367 $ 8,805 $ 10,349 $ 51,827 Total amortized cost $ 8,315 $ 24,480 $ 8,819 $ 10,355 $ 51,969 Held to maturity securities: U.S. agency mortgage-backed securities (1) $ 418 $ 13,032 $ 30,343 $ 57,879 $ 101,672 Asset-backed securities — 1,046 7,356 6,342 14,744 Corporate debt securities 351 3,368 585 — 4,304 U.S. state and municipal securities — — 173 1,089 1,262 Non-agency commercial mortgage-backed securities (1) — 355 — 662 1,017 U.S. Treasury securities — — 215 — 215 Certificates of deposit — 200 — — 200 Foreign government agency securities — 49 — — 49 Total fair value $ 769 $ 18,050 $ 38,672 $ 65,972 $ 123,463 Total amortized cost $ 771 $ 18,270 $ 39,171 $ 67,471 $ 125,683 (1) Mortgage-backed securities have been allocated to maturity groupings based on final contractual maturities. Actual maturities will differ from final contractual maturities because borrowers on a certain portion of loans underlying these securities have the right to prepay their obligations. |
Proceeds and Gross Realized Gains And Losses from Sales of Securities Available for Sale | Proceeds and gross realized gains and losses from sales of AFS securities are as follows: Three Months Ended 2018 2017 Proceeds $ — $ 1,064 Gross realized gains — 1 |
Bank Loans and Related Allowa30
Bank Loans and Related Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Composition of Bank Loans and Delinquency Analysis by Loan Segment | The composition of bank loans and delinquency analysis by loan type is as follows: March 31, 2018 Current 30-59 days 60-89 days >90 days past (3) Total past due Total Allowance Total First Mortgages (1,2) $ 10,041 $ 15 $ 3 $ 19 $ 37 $ 10,078 $ 17 $ 10,061 HELOCs (1,2) 1,781 4 1 10 15 1,796 7 1,789 Pledged asset lines 4,360 1 1 — 2 4,362 — 4,362 Other 180 — — — — 180 3 177 Total bank loans $ 16,362 $ 20 $ 5 $ 29 $ 54 $ 16,416 $ 27 $ 16,389 December 31, 2017 First Mortgages (1,2) $ 9,983 $ 14 $ 2 $ 17 $ 33 $ 10,016 $ 16 $ 10,000 HELOCs (1,2) 1,928 — 3 12 15 1,943 8 1,935 Pledged asset lines 4,361 4 4 — 8 4,369 — 4,369 Other 176 — — — — 176 2 174 Total bank loans $ 16,448 $ 18 $ 9 $ 29 $ 56 $ 16,504 $ 26 $ 16,478 (1) First Mortgages and HELOCs include unamortized premiums and discounts and direct origination costs of $75 million and $77 million at March 31, 2018 and December 31, 2017 , respectively. (2) At March 31, 2018 and December 31, 2017 , 48% of the First Mortgage and HELOC portfolios were concentrated in California. These loans have performed in a manner consistent with the portfolio as a whole. (3) There were no loans accruing interest that were contractually 90 days or more past due at March 31, 2018 or December 31, 2017 . |
Changes in Allowance for Loan Losses | Changes in the allowance for loan losses were as follows: March 31, 2018 March 31, 2017 First Mortgages HELOCs Other Total (1) First Mortgages HELOCs Other Total (1) Balance at beginning of period $ 16 $ 8 $ 2 $ 26 $ 17 $ 8 $ 1 $ 26 Provision for loan losses 1 (1 ) 1 1 — — — — Balance at end of period $ 17 $ 7 $ 3 $ 27 $ 17 $ 8 $ 1 $ 26 (1) All pledged asset lines (PALs) were fully collateralized by securities with fair values in excess of borrowings at March 31, 2018 and December 31, 2017 . |
Impaired Bank Loan Related Assets | A summary of impaired bank loan related assets is as follows: March 31, 2018 December 31, 2017 Nonaccrual loans (1) $ 29 $ 28 Other real estate owned (2) 2 3 Total nonperforming assets 31 31 Troubled debt restructurings 8 11 Total impaired assets $ 39 $ 42 (1) Nonaccrual loans include nonaccrual troubled debt restructurings. (2) Included in Other assets on the condensed consolidated balance sheets. |
Credit Quality Indicators of Bank Loan Portfolio | The credit quality indicators of the Company’s bank loan portfolio are detailed below: March 31, 2018 Balance Weighted Average Utilization (1) Percent of First Mortgages: Estimated Current LTV < 70% $ 9,114 778 N/A 0.08 % >70% – < 90% 955 770 N/A 0.58 % >90% – < 100% 6 713 N/A 6.11 % >100% 3 738 N/A 7.67 % Total $ 10,078 777 N/A 0.13 % HELOCs: Estimated Current LTV (2) < 70% $ 1,639 773 31 % 0.17 % >70% – < 90% 139 757 45 % 0.86 % >90% – < 100% 11 746 68 % 1.47 % >100% 7 714 72 % 8.46 % Total $ 1,796 771 32 % 0.26 % Pledged asset lines: Weighted-Average LTV (2) =70% $ 4,362 767 39 % — December 31, 2017 Balance Weighted Average Utilization (1) Percent of First Mortgages: Estimated Current LTV < 70% $ 9,046 775 N/A 0.09 % >70% – < 90% 961 769 N/A 0.46 % >90% – < 100% 5 714 N/A 10.49 % >100% 4 713 N/A 6.23 % Total $ 10,016 775 N/A 0.14 % HELOCs: Estimated Current LTV (2) < 70% $ 1,773 772 32 % 0.18 % >70% – < 90% 148 755 47 % 0.84 % >90% – < 100% 14 742 64 % 2.85 % >100% 8 718 72 % 4.91 % Total $ 1,943 770 33 % 0.27 % Pledged asset lines: Weighted-Average LTV (2) =70% $ 4,369 765 41 % — (1) The Utilization Rate is calculated using the outstanding balance divided by the associated total line of credit. (2) Represents the LTV for the full line of credit (drawn and undrawn). N/A Not applicable. March 31, 2018 First Mortgages HELOCs Year of origination Pre-2014 $ 2,570 $ 1,364 2014 499 105 2015 1,167 115 2016 2,813 101 2017 2,556 97 2018 473 14 Total $ 10,078 $ 1,796 Origination FICO <620 $ 6 $ 1 620 – 679 90 9 680 – 739 1,564 339 > 740 8,418 1,447 Total $ 10,078 $ 1,796 Origination LTV < 70% $ 7,627 $ 1,257 >70% – < 90% 2,445 530 >90% – < 100% 6 9 Total $ 10,078 $ 1,796 December 31, 2017 First Mortgages HELOCs Year of origination Pre-2014 $ 2,804 $ 1,496 2014 530 116 2015 1,218 128 2016 2,886 111 2017 2,578 92 Total $ 10,016 $ 1,943 Origination FICO <620 $ 6 $ 1 620 – 679 89 10 680 – 739 1,569 365 > 740 8,352 1,567 Total $ 10,016 $ 1,943 Origination LTV < 70% $ 7,569 $ 1,360 >70% – < 90% 2,441 574 >90% – < 100% 6 9 Total $ 10,016 $ 1,943 |
Converting to Amortizing Loans | The following table presents when current outstanding HELOCs will convert to amortizing loans: March 31, 2018 Balance Converted to an amortizing loan by period end $ 451 Within 1 year 495 > 1 year – 3 years 168 > 3 years – 5 years 145 > 5 years 537 Total $ 1,796 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Variable Interest Entities [Abstract] | |
Aggregate Assets, Liabilities and Maximum Exposure to Loss | The aggregate assets, liabilities, and maximum exposure to loss from those VIEs in which Schwab holds a variable interest, but as to which we have concluded it is not the primary beneficiary, are summarized in the table below: March 31, 2018 December 31, 2017 Aggregate Aggregate Maximum Aggregate Aggregate Maximum LIHTC investments (1) $ 340 $ 217 $ 340 $ 304 $ 203 $ 304 Other CRA investments (2) 67 — 122 69 — 125 Total $ 407 $ 217 $ 462 $ 373 $ 203 $ 429 (1) Aggregate assets and aggregate liabilities are included in other assets and accrued expenses and other liabilities, respectively, on the condensed consolidated balance sheets. (2) Other CRA investments are recorded using either the adjusted cost method, equity method, or as HTM securities. Aggregate assets are included in other assets, HTM securities, or bank loans – net on the condensed consolidated balance sheets. |
Bank Deposits (Tables)
Bank Deposits (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Banking and Thrift [Abstract] | |
Deposits from Banking Clients Consisting of Interest Bearing and Noninterest Bearing Deposits | Bank deposits consist of interest-bearing and non-interest-bearing deposits as follows: March 31, 2018 December 31, 2017 Interest-bearing deposits: Deposits swept from brokerage accounts $ 168,854 $ 148,212 Checking 13,530 13,388 Savings and other 6,925 7,264 Total interest-bearing deposits 189,309 168,864 Non-interest-bearing deposits 875 792 Total bank deposits $ 190,184 $ 169,656 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt Including Unamortized Debt Discounts and Premiums | The following table lists long-term debt by instrument outstanding as of March 31, 2018 and December 31, 2017 . Date of Issuance Principal Amount Outstanding March 31, 2018 December 31, 2017 Fixed-rate Senior Notes: 1.500% due March 10, 2018 (1) 03/10/15 $ — $ 625 2.200% due July 25, 2018 07/25/13 275 275 4.450% due July 22, 2020 07/22/10 700 700 3.225% due September 1, 2022 08/29/12 256 256 2.650% due January 25, 2023 12/07/17 800 800 3.000% due March 10, 2025 03/10/15 375 375 3.450% due February 13, 2026 11/13/15 350 350 3.200% due March 2, 2027 03/02/17 650 650 3.200% due January 25, 2028 12/07/17 700 700 Total fixed-rate Senior Notes 4,106 4,731 5.450% Finance lease obligation (2) 06/04/04 59 61 Unamortized discount — net (14 ) (14 ) Debt issuance costs (23 ) (25 ) Total long-term debt $ 4,128 $ 4,753 (1) Redeemed on February 8, 2018. (2) Schwab has a finance lease obligation related to an office building and land under a 20 -year lease. The remaining finance lease obligation is being reduced by a portion of the lease payments over the remaining lease term through June 30, 2024. |
Annual Maturities on Long-term Debt Outstanding | Annual maturities on long-term debt outstanding at March 31, 2018 are as follows: 2018 $ 281 2019 8 2020 709 2021 9 2022 266 Thereafter 2,892 Total maturities 4,165 Unamortized discount — net (14 ) Debt issuance costs (23 ) Total long-term debt $ 4,128 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments to Purchase or Sell | The Company’s commitments to extend credit on bank lines of credit and to purchase First Mortgages are as follows: March 31, 2018 December 31, 2017 Commitments to extend credit related to unused HELOCs, PALs, and other lines of credit $ 10,555 $ 10,060 Commitments to purchase First Mortgage loans 377 308 Total $ 10,932 $ 10,368 |
Financial Instruments Subject35
Financial Instruments Subject to Off-Balance Sheet Credit Risk (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Offsetting [Abstract] | |
Offsetting Assets and Liabilities | The following table presents information about our resale agreements and securities lending activity depicting the potential effect of rights of setoff between these recognized assets and recognized liabilities at March 31, 2018 and December 31, 2017 . Gross Amounts Not Offset in the Gross Gross Amounts Net Amounts Counterparty Collateral Net March 31, 2018 Assets: Resale agreements (1) $ 4,434 $ — $ 4,434 $ — $ (4,434 ) (2) $ — Securities borrowed (3) 241 — 241 (172 ) (68 ) 1 Total $ 4,675 $ — $ 4,675 $ (172 ) $ (4,502 ) $ 1 Liabilities: Securities loaned (4,5) $ 800 $ — $ 800 $ (172 ) $ (558 ) $ 70 Total $ 800 $ — $ 800 $ (172 ) $ (558 ) $ 70 December 31, 2017 Assets: Resale agreements (1) $ 6,596 $ — $ 6,596 $ — $ (6,596 ) (2) $ — Securities borrowed (3) 222 — 222 (199 ) (22 ) 1 Total $ 6,818 $ — $ 6,818 $ (199 ) $ (6,618 ) $ 1 Liabilities: Securities loaned (4,5) $ 966 $ — $ 966 $ (199 ) $ (670 ) $ 97 Total $ 966 $ — $ 966 $ (199 ) $ (670 ) $ 97 (1) Included in cash and investments segregated and on deposit for regulatory purposes in the condensed consolidated balance sheets. (2) Actual collateral was greater than or equal to 102% of the related assets. At March 31, 2018 and December 31, 2017 , the fair value of collateral received in connection with resale agreements that are available to be repledged or sold was $4.5 billion and $6.7 billion , respectively. (3) Included in receivables from brokers, dealers, and clearing organizations in the condensed consolidated balance sheets. (4) Included in payables to brokers, dealers, and clearing organizations in the condensed consolidated balance sheets. The cash collateral received from counterparties under securities lending transactions was equal to or greater than the market value of the securities loaned at March 31, 2018 and December 31, 2017 . (5) Securities loaned are predominantly comprised of equity securities held in client brokerage accounts with overnight and continuous remaining contractual maturities. |
Summary of the Fair Value of Client Securities Available to Utilize as Collateral and Amounts Pledged | The following table summarizes the fair value of client securities that were available, under such regulations, that could have been used as collateral, and the amounts that we had pledged: March 31, 2018 December 31, 2017 Fair value of client securities available to be pledged $ 27,296 $ 25,905 Fair value of client securities pledged for: Fulfillment of requirements with the Options Clearing Corporation (1) 3,368 2,280 Fulfillment of client short sales 1,713 2,011 Securities lending to other broker-dealers 653 784 Total collateral pledged $ 5,734 $ 5,075 Note: Excludes amounts available and pledged for securities lending from fully-paid client securities. The fair value of fully-paid client securities available and pledged was $74 million as of March 31, 2018 and $78 million as of December 31, 2017 . (1) Client securities pledged to fulfill client margin requirements for open option contracts established with the Options Clearing Corporation. |
Fair Values of Assets and Lia36
Fair Values of Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present the fair value hierarchy for assets measured at fair value on a recurring basis. Liabilities recorded at fair value were not material, and therefore are not included in the following tables: March 31, 2018 Quoted Prices Significant Significant Balance at Cash equivalents: Money market funds $ 1,049 $ — $ — $ 1,049 Total cash equivalents 1,049 — — 1,049 Investments segregated and on deposit for regulatory purposes: Certificates of deposit — 2,147 — 2,147 U.S. Government securities — 3,661 — 3,661 Total investments segregated and on deposit for regulatory purposes — 5,808 — 5,808 Other securities owned: Equity and bond mutual funds 371 — — 371 Schwab Funds ® money market funds 59 — — 59 State and municipal debt obligations — 36 — 36 Equity, U.S. Government and corporate debt, and other securities 2 32 — 34 Total other securities owned 432 68 — 500 Available for sale securities: U.S. agency mortgage-backed securities — 21,061 — 21,061 U.S. Treasury securities — 10,827 — 10,827 Asset-backed securities — 9,636 — 9,636 Corporate debt securities — 6,552 — 6,552 Certificates of deposit — 1,791 — 1,791 U.S. agency notes — 1,557 — 1,557 Commercial paper — 315 — 315 Foreign government agency securities — 48 — 48 Non-agency commercial mortgage-backed securities — 40 — 40 Total available for sale securities — 51,827 — 51,827 Total $ 1,481 $ 57,703 $ — $ 59,184 December 31, 2017 Quoted Prices Significant Significant Balance at Cash equivalents: Money market funds $ 2,727 $ — $ — $ 2,727 Total cash equivalents 2,727 — — 2,727 Investments segregated and on deposit for regulatory purposes: Certificates of deposit — 2,198 — 2,198 U.S. Government securities — 3,658 — 3,658 Total investments segregated and on deposit for regulatory purposes — 5,856 — 5,856 Other securities owned: Equity and bond mutual funds 318 — — 318 Schwab Funds ® money market funds 135 — — 135 State and municipal debt obligations — 52 — 52 Equity, U.S. Government and corporate debt, and other securities 2 32 — 34 Total other securities owned 455 84 — 539 Available for sale securities: U.S. agency mortgage-backed securities — 20,929 — 20,929 U.S. Treasury securities — 9,500 — 9,500 Asset-backed securities — 9,047 — 9,047 Corporate debt securities — 6,169 — 6,169 Certificates of deposit — 2,041 — 2,041 U.S. agency notes — 1,906 — 1,906 Commercial paper — 313 — 313 Foreign government agency securities — 50 — 50 Non-agency commercial mortgage-backed securities — 40 — 40 Total available for sale securities — 49,995 — 49,995 Total $ 3,182 $ 55,935 $ — $ 59,117 |
Fair Value of Other Financial Instruments | The following tables present the fair value hierarchy for other financial instruments: March 31, 2018 Carrying Quoted Prices Significant Significant Balance at Assets: Cash and cash equivalents $ 13,096 $ — $ 13,096 $ — $ 13,096 Cash and investments segregated and on deposit for regulatory purposes 7,002 — 7,002 — 7,002 Receivables from brokers, dealers, and clearing organizations 894 — 894 — 894 Receivables from brokerage clients — net 21,144 — 21,144 — 21,144 Held to maturity securities: U.S. agency mortgage-backed securities 103,967 — 101,672 — 101,672 Asset-backed securities 14,625 — 14,744 — 14,744 Corporate debt securities 4,340 — 4,304 — 4,304 U.S. state and municipal securities 1,245 — 1,262 — 1,262 Non-agency commercial mortgage-backed securities 1,033 — 1,017 — 1,017 U.S. Treasury securities 223 — 215 — 215 Certificates of deposit 200 — 200 — 200 Foreign government agency securities 50 — 49 — 49 Total held to maturity securities 125,683 — 123,463 — 123,463 Bank loans — net: First Mortgages 10,061 — 9,865 — 9,865 HELOCs 1,789 — 1,834 — 1,834 Pledged asset lines 4,362 — 4,362 — 4,362 Other 177 — 177 — 177 Total bank loans — net 16,389 — 16,238 — 16,238 Other assets 656 — 656 — 656 Total $ 184,864 $ — $ 182,493 $ — $ 182,493 Liabilities: Bank deposits $ 190,184 $ — $ 190,184 $ — $ 190,184 Payables to brokers, dealers, and clearing organizations 1,122 — 1,122 — 1,122 Payables to brokerage clients 31,088 — 31,088 — 31,088 Accrued expenses and other liabilities 1,173 — 1,173 — 1,173 Long-term debt 4,128 — 4,077 — 4,077 Total $ 227,695 $ — $ 227,644 $ — $ 227,644 December 31, 2017 Carrying Quoted Prices Significant Significant Balance at Assets: Cash and cash equivalents $ 11,490 $ — $ 11,490 $ — $ 11,490 Cash and investments segregated and on deposit for regulatory purposes 9,277 — 9,277 — 9,277 Receivables from brokers, dealers, and clearing organizations 649 — 649 — 649 Receivables from brokerage clients — net 20,568 — 20,568 — 20,568 Held to maturity securities: U.S. agency mortgage-backed securities 101,197 — 100,453 — 100,453 Asset-backed securities 12,937 — 13,062 — 13,062 Corporate debt securities 4,078 — 4,086 — 4,086 U.S. state and municipal securities 1,247 — 1,304 — 1,304 Non-agency commercial mortgage-backed securities 994 — 999 — 999 U.S. Treasury securities 223 — 220 — 220 Certificates of deposit 200 — 200 — 200 Foreign government agency securities 50 — 49 — 49 Total held to maturity securities 120,926 — 120,373 — 120,373 Bank loans — net: First Mortgages 10,000 — 9,917 — 9,917 HELOCs 1,935 — 2,025 — 2,025 Pledged asset lines 4,369 — 4,369 — 4,369 Other 174 — 174 — 174 Total bank loans — net 16,478 — 16,485 — 16,485 Other assets 781 — 781 — 781 Total $ 180,169 $ — $ 179,623 $ — $ 179,623 Liabilities: Bank deposits $ 169,656 $ — $ 169,656 $ — $ 169,656 Payables to brokers, dealers, and clearing organizations 1,287 — 1,287 — 1,287 Payables to brokerage clients 31,243 — 31,243 — 31,243 Accrued expenses and other liabilities 1,463 — 1,463 — 1,463 Short-term borrowings 15,000 — 15,000 — 15,000 Long-term debt 4,753 — 4,811 — 4,811 Total $ 223,402 $ — $ 223,460 $ — $ 223,460 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Preferred Stock Issued and Outstanding | The Company’s preferred stock issued and outstanding is as follows: Shares Issued and Outstanding (In thousands) at Liquidation Preference Per Share Carrying Value at Dividend Rate in Effect at March 31, 2018 Earliest Redemption Date Date at Which Dividend Rate Becomes Floating Floating Annual Rate of Three-Month LIBOR plus: March 31, 2018 (1) December 31, 2017 (1) March 31, 2018 December 31, 2017 Issue Date Fixed-rate: Series C 600 600 $ 1,000 $ 585 $ 585 08/03/15 6.000 % 12/01/20 N/A N/A Series D 750 750 1,000 728 728 03/07/16 5.950 % 06/01/21 N/A N/A Fixed-to-floating-rate: Series A 400 400 1,000 397 397 01/26/12 7.000 % 02/01/22 02/01/22 4.820 % Series E 6 6 100,000 591 591 10/31/16 4.625 % 03/01/22 03/01/22 3.315 % Series F 5 5 100,000 492 492 10/31/17 5.000 % 12/01/27 12/01/27 2.575 % Total preferred stock 1,761 1,761 $ 2,793 $ 2,793 (1) Represented by depositary shares, except for Series A. N/A Not applicable. |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Components of Other Comprehensive Income (Loss) | Accumulated other comprehensive income (AOCI) represents cumulative gains and losses that are not reflected in earnings. The components of other comprehensive income (loss) are as follows: Three Months Ended March 31, 2018 2017 Before Tax Net of Before Tax Net of Change in net unrealized gain (loss) on available for sale securities: Net unrealized gain (loss) $ (108 ) $ 26 $ (82 ) $ 52 $ (19 ) $ 33 Reclassification of net unrealized loss on securities transferred to held to maturity (1) — — — 227 (85 ) 142 Other reclassifications included in other revenue — — — (1 ) — (1 ) Change in net unrealized gain (loss) on held to maturity securities: Reclassification of net unrealized loss on securities transferred from available for sale (1) — — — (227 ) 85 (142 ) Amortization of amounts previously recorded upon transfer from available for sale 9 (2 ) 7 2 (1 ) 1 Other — — — (3 ) 1 (2 ) Other comprehensive income (loss) $ (99 ) $ 24 $ (75 ) $ 50 $ (19 ) $ 31 (1) See Note 5 in the 2017 10-K for discussion of the transfer of securities from the AFS category to the HTM category during the first quarter of 2017. |
Accumulated Other Comprehensive Income Balances | AOCI balances are as follows: Total Balance at December 31, 2016 $ (163 ) Available for sale securities: Net unrealized gain (loss) 33 Reclassification of net unrealized loss on securities transferred to held to maturity 142 Other reclassifications included in other revenue (1 ) Held to maturity securities: Reclassification of net unrealized loss on securities transferred from available for sale (142 ) Amortization of amounts previously recorded upon transfer to held to maturity from available for sale 1 Other (2 ) Balance at March 31, 2017 $ (132 ) Balance at December 31, 2017 $ (152 ) Adoption of accounting standards (Note 2) (33 ) Available for sale securities: Net unrealized gain (loss) (82 ) Held to maturity securities: Amortization of amounts previously recorded upon transfer to held to maturity from available for sale 7 Balance at March 31, 2018 $ (260 ) |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
EPS under Basic and Diluted Computations | EPS under the basic and diluted computations is as follows: Three Months Ended 2018 2017 Net income $ 783 $ 564 Preferred stock dividends and other (1) (37 ) (39 ) Net income available to common stockholders $ 746 $ 525 Weighted-average common shares outstanding — basic 1,347 1,336 Common stock equivalent shares related to stock incentive plans 15 15 Weighted-average common shares outstanding — diluted (2) 1,362 1,351 Basic EPS $ .55 $ .39 Diluted EPS $ .55 $ .39 (1) Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested restricted stock units. (2) Antidilutive stock options and restricted stock units excluded from the calculation of diluted EPS totaled 11 million and 10 million shares for the first quarters of 2018 and 2017 , respectively. |
Regulatory Requirements (Tables
Regulatory Requirements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Banking and Thrift [Abstract] | |
Regulatory Capital and Ratios | The regulatory capital and ratios for CSC (consolidated) and CSB are as follows: Actual Minimum to be Minimum Capital Requirement March 31, 2018 Amount Ratio Amount Ratio Amount Ratio CSC Common Equity Tier 1 Risk-Based Capital $ 15,535 19.8 % N/A $ 3,537 4.5 % Tier 1 Risk-Based Capital 18,328 23.3 % N/A 4,717 6.0 % Total Risk-Based Capital 18,372 23.4 % N/A 6,289 8.0 % Tier 1 Leverage 18,328 7.5 % N/A 9,832 4.0 % CSB Common Equity Tier 1 Risk-Based Capital $ 14,093 20.7 % $ 4,435 6.5 % $ 3,070 4.5 % Tier 1 Risk-Based Capital 14,093 20.7 % 5,458 8.0 % 4,094 6.0 % Total Risk-Based Capital 14,121 20.7 % 6,823 10.0 % 5,458 8.0 % Tier 1 Leverage 14,093 7.0 % 10,133 5.0 % 8,107 4.0 % December 31, 2017 CSC Common Equity Tier 1 Risk-Based Capital $ 14,630 19.3 % N/A $ 3,414 4.5 % Tier 1 Risk-Based Capital 17,423 23.0 % N/A 4,552 6.0 % Total Risk-Based Capital 17,452 23.0 % N/A 6,069 8.0 % Tier 1 Leverage 17,423 7.6 % N/A 9,218 4.0 % CSB Common Equity Tier 1 Risk-Based Capital $ 13,355 20.1 % $ 4,324 6.5 % $ 2,993 4.5 % Tier 1 Risk-Based Capital 13,355 20.1 % 5,321 8.0 % 3,991 6.0 % Total Risk-Based Capital 13,382 20.1 % 6,652 10.0 % 5,321 8.0 % Tier 1 Leverage 13,355 7.1 % 9,462 5.0 % 7,569 4.0 % N/A Not applicable. |
Net Capital and Net Capital Requirements | Net capital and net capital requirements for CS&Co are as follows: March 31, 2018 December 31, 2017 Net Capital $ 2,211 $ 2,118 Minimum net capital required 0.250 0.250 2% of aggregate debit balances 459 435 Net Capital in excess of required net capital $ 1,752 $ 1,683 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Financial Information for Reportable Segments | Financial information for the segments is presented in the following table: Investor Services Advisor Services Total Three Months Ended March 31, 2018 2017 2018 2017 2018 2017 Net Revenues: Net interest revenue $ 957 $ 753 $ 306 $ 247 $ 1,263 $ 1,000 Asset management and administration fees 593 566 258 257 851 823 Trading revenue 127 119 74 73 201 192 Other 64 50 19 16 83 66 Total net revenues 1,741 1,488 657 593 2,398 2,081 Expenses Excluding Interest 1,042 930 354 308 1,396 1,238 Income before taxes on income $ 699 $ 558 $ 303 $ 285 $ 1,002 $ 843 |
New Accounting Standards (Detai
New Accounting Standards (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Jan. 01, 2018 |
ASU 2014-09 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Capitalized costs | $ 219 | |
Deferred tax liability | $ 55 | 52 |
ASU 2018-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Retained earnings | $ 33 |
New Accounting Standards (Recla
New Accounting Standards (Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Assets | |||||
Other assets | $ 2,038 | $ 2,116 | $ 1,949 | ||
Equity | |||||
Retained earnings | 15,222 | 14,608 | 14,408 | ||
Accumulated other comprehensive income (loss) | (260) | (185) | $ (152) | $ (132) | $ (163) |
Capitalized contract cost | 230 | 219 | |||
Accounting Standards Update 2014-09 and 2018-02 [Member] | |||||
Equity | |||||
Capitalized contract cost | 219 | ||||
Deferred tax liability | 52 | ||||
ASU 2014-09 [Member] | |||||
Equity | |||||
Capitalized contract cost | 230 | ||||
Deferred tax liability | $ 55 | 52 | |||
ASU 2014-09 [Member] | Adjustments [Member] | |||||
Assets | |||||
Other assets | 167 | ||||
Equity | |||||
Retained earnings | 167 | ||||
Accumulated other comprehensive income (loss) | 0 | ||||
ASU 2018-02 [Member] | Adjustments [Member] | |||||
Assets | |||||
Other assets | 0 | ||||
Equity | |||||
Retained earnings | 33 | ||||
Accumulated other comprehensive income (loss) | $ (33) |
New Accounting Standards (State
New Accounting Standards (Statement of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Expenses Excluding Interest | |||
Compensation and benefits | $ 770 | $ 701 | |
Taxes on income | 219 | 279 | |
Net income | 783 | $ 564 | [1] |
Balances Without Adoption of ASC 606 [Member] | ASU 2014-09 [Member] | |||
Expenses Excluding Interest | |||
Compensation and benefits | 781 | ||
Taxes on income | 216 | ||
Net income | 775 | ||
Effect of Change Higher/(Lower) [Member] | ASU 2014-09 [Member] | |||
Expenses Excluding Interest | |||
Compensation and benefits | (11) | ||
Taxes on income | 3 | ||
Net income | $ 8 | ||
[1] | Adjusted for the retrospective adoption of ASU 2016-18. See Note 2. |
New Accounting Standards (Balan
New Accounting Standards (Balance Sheet) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Assets | |||
Other assets | $ 2,038 | $ 2,116 | $ 1,949 |
Stockholders’ Equity | |||
Retained earnings | 15,222 | 14,608 | $ 14,408 |
Capitalized contract cost | 230 | 219 | |
ASU 2014-09 [Member] | |||
Stockholders’ Equity | |||
Capitalized contract cost | 230 | ||
Deferred tax liability | 55 | $ 52 | |
Balances Without Adoption of ASC 606 [Member] | ASU 2014-09 [Member] | |||
Assets | |||
Other assets | 1,863 | ||
Stockholders’ Equity | |||
Retained earnings | 15,047 | ||
Effect of Change Higher/(Lower) [Member] | ASU 2014-09 [Member] | |||
Assets | |||
Other assets | 175 | ||
Stockholders’ Equity | |||
Retained earnings | $ 175 |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregated Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Interest revenue | $ 1,421 | $ 1,055 |
Interest expense | (158) | (55) |
Net interest revenue | 1,263 | 1,000 |
Asset management and administration fees | 851 | 823 |
Trading revenue | 201 | 192 |
Other | 83 | 66 |
Total net revenues | 2,398 | 2,081 |
Mutual funds and ETF service fees [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Asset management and administration fees | 493 | 506 |
Advice Solutions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Asset management and administration fees | 282 | 244 |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Asset management and administration fees | 76 | 73 |
Commissions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Trading revenue | 189 | 178 |
Principal Transactions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Trading revenue | $ 12 | $ 14 |
Revenue Recognition (Capitalize
Revenue Recognition (Capitalized Contract Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Jan. 01, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred contract cost | $ 230 | $ 219 |
Amortization expense | $ 11 |
Investment Securities (Amortize
Investment Securities (Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Securities Available for Sale and Held to Maturity Securities) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Available for sale securities: | ||
Amortized Cost | $ 51,969 | $ 50,029 |
Gross Unrealized Gains | 88 | 105 |
Gross Unrealized Losses | 230 | 139 |
Fair Value | 51,827 | 49,995 |
Held to maturity securities: | ||
Amortized Cost | 125,683 | 120,926 |
Gross Unrealized Gains | 239 | 497 |
Gross Unrealized Losses | 2,459 | 1,050 |
Fair Value | 123,463 | 120,373 |
U.S. agency mortgage-backed securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 21,077 | 20,915 |
Gross Unrealized Gains | 49 | 53 |
Gross Unrealized Losses | 65 | 39 |
Fair Value | 21,061 | 20,929 |
Held to maturity securities: | ||
Amortized Cost | 103,967 | 101,197 |
Gross Unrealized Gains | 82 | 290 |
Gross Unrealized Losses | 2,377 | 1,034 |
Fair Value | 101,672 | 100,453 |
U.S. Treasury securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 10,964 | 9,583 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 137 | 83 |
Fair Value | 10,827 | 9,500 |
Held to maturity securities: | ||
Amortized Cost | 223 | 223 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 8 | 3 |
Fair Value | 215 | 220 |
Asset-backed securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 9,622 | 9,019 |
Gross Unrealized Gains | 25 | 34 |
Gross Unrealized Losses | 11 | 6 |
Fair Value | 9,636 | 9,047 |
Held to maturity securities: | ||
Amortized Cost | 14,625 | 12,937 |
Gross Unrealized Gains | 126 | 127 |
Gross Unrealized Losses | 7 | 2 |
Fair Value | 14,744 | 13,062 |
Corporate debt securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 6,546 | 6,154 |
Gross Unrealized Gains | 12 | 16 |
Gross Unrealized Losses | 6 | 1 |
Fair Value | 6,552 | 6,169 |
Held to maturity securities: | ||
Amortized Cost | 4,340 | 4,078 |
Gross Unrealized Gains | 8 | 13 |
Gross Unrealized Losses | 44 | 5 |
Fair Value | $ 4,304 | $ 4,086 |
AFS and HTM securities percentage | 38.00% | 41.00% |
Certificates of deposit [Member] | ||
Available for sale securities: | ||
Amortized Cost | $ 1,790 | $ 2,040 |
Gross Unrealized Gains | 2 | 2 |
Gross Unrealized Losses | 1 | 1 |
Fair Value | 1,791 | 2,041 |
Held to maturity securities: | ||
Amortized Cost | 200 | 200 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 200 | 200 |
U.S. agency notes [Member] | ||
Available for sale securities: | ||
Amortized Cost | 1,565 | 1,914 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 8 | 8 |
Fair Value | 1,557 | 1,906 |
Commercial paper [Member] | ||
Available for sale securities: | ||
Amortized Cost | 315 | 313 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 315 | 313 |
U.S. state and municipal securities [Member] | ||
Held to maturity securities: | ||
Amortized Cost | 1,245 | 1,247 |
Gross Unrealized Gains | 20 | 57 |
Gross Unrealized Losses | 3 | 0 |
Fair Value | 1,262 | 1,304 |
Non-agency commercial mortgage-backed securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 40 | 40 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 40 | 40 |
Held to maturity securities: | ||
Amortized Cost | 1,033 | 994 |
Gross Unrealized Gains | 3 | 10 |
Gross Unrealized Losses | 19 | 5 |
Fair Value | 1,017 | 999 |
Foreign government agency securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 50 | 51 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 2 | 1 |
Fair Value | 48 | 50 |
Held to maturity securities: | ||
Amortized Cost | 50 | 50 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 1 | 1 |
Fair Value | $ 49 | $ 49 |
Federal Family Education Loan Program (FFELP) Guaranteed Loans [Member] | ||
Held to maturity securities: | ||
Asset-backed securities percentage | 40.00% | 42.00% |
Collateralized Credit Card Securities [Member] | ||
Held to maturity securities: | ||
Asset-backed securities percentage | 42.00% | 40.00% |
Corporate Debt Securities, Information Technology [Member] | ||
Held to maturity securities: | ||
AFS and HTM securities percentage | 22.00% | 22.00% |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Schedule of Held-to-maturity Securities [Line Items] | ||
OTTI recognized in earnings or other comprehensive income | $ 0 | $ 0 |
Deposits [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair value of pledged securities | 906,000,000 | |
Federal Reserve Bank Advances [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair value of pledged securities | 2,500,000,000 | |
Federal Home Loan Bank of San Francisco [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair value of pledged securities | $ 23,000,000,000 |
Investment Securities (Availabl
Investment Securities (Available For Sale and Held to Maturity Securities with Unrealized Losses, Aggregated by Category and Period of Continuous Unrealized Loss) (Details) $ in Millions | Mar. 31, 2018USD ($)security | Dec. 31, 2017USD ($)security |
Available for sale securities: | ||
Less than 12 months Fair Value | $ 15,994 | $ 12,909 |
Less than 12 months Unrealized Losses | 113 | 38 |
12 months or longer Fair Value | 9,643 | 9,774 |
12 months or longer Unrealized Losses | 117 | 101 |
Total Fair Value | 25,637 | 22,683 |
Total Unrealized Losses | 230 | 139 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 66,008 | 45,180 |
Less than 12 months Unrealized Losses | 1,248 | 326 |
12 months or longer Fair Value | 24,842 | 24,825 |
12 months or longer Unrealized Losses | 1,211 | 724 |
Total Fair Value | 90,850 | 70,005 |
Total Unrealized Losses | 2,459 | 1,050 |
Total securities with unrealized losses | ||
Less than 12 months Fair Value | 82,002 | 58,089 |
Less than 12 months Unrealized Losses | 1,361 | 364 |
12 months or longer Fair Value | 34,485 | 34,599 |
12 months or longer Unrealized Losses | 1,328 | 825 |
Total Fair Value | 116,487 | 92,688 |
Total Unrealized Losses | $ 2,689 | $ 1,189 |
Number of available for sale securities in unrealized loss positions | security | 314 | 251 |
Number of held to maturity securities in unrealized loss positions | security | 1,353 | 938 |
U.S. agency mortgage-backed securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | $ 6,308 | $ 5,696 |
Less than 12 months Unrealized Losses | 52 | 21 |
12 months or longer Fair Value | 2,339 | 2,548 |
12 months or longer Unrealized Losses | 13 | 18 |
Total Fair Value | 8,647 | 8,244 |
Total Unrealized Losses | 65 | 39 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 60,892 | 42,102 |
Less than 12 months Unrealized Losses | 1,166 | 310 |
12 months or longer Fair Value | 24,742 | 24,753 |
12 months or longer Unrealized Losses | 1,211 | 724 |
Total Fair Value | 85,634 | 66,855 |
Total Unrealized Losses | 2,377 | 1,034 |
U.S. Treasury securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 5,522 | 4,625 |
Less than 12 months Unrealized Losses | 45 | 11 |
12 months or longer Fair Value | 5,305 | 4,875 |
12 months or longer Unrealized Losses | 92 | 72 |
Total Fair Value | 10,827 | 9,500 |
Total Unrealized Losses | 137 | 83 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 215 | 220 |
Less than 12 months Unrealized Losses | 8 | 3 |
12 months or longer Fair Value | 0 | 0 |
12 months or longer Unrealized Losses | 0 | 0 |
Total Fair Value | 215 | 220 |
Total Unrealized Losses | 8 | 3 |
Asset-backed securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 1,594 | 904 |
Less than 12 months Unrealized Losses | 7 | 3 |
12 months or longer Fair Value | 422 | 424 |
12 months or longer Unrealized Losses | 4 | 3 |
Total Fair Value | 2,016 | 1,328 |
Total Unrealized Losses | 11 | 6 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 1,249 | 1,124 |
Less than 12 months Unrealized Losses | 7 | 2 |
12 months or longer Fair Value | 100 | 72 |
12 months or longer Unrealized Losses | 0 | 0 |
Total Fair Value | 1,349 | 1,196 |
Total Unrealized Losses | 7 | 2 |
Corporate debt securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 1,503 | 736 |
Less than 12 months Unrealized Losses | 6 | 1 |
12 months or longer Fair Value | 20 | 120 |
12 months or longer Unrealized Losses | 0 | 0 |
Total Fair Value | 1,523 | 856 |
Total Unrealized Losses | 6 | 1 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 2,743 | 1,078 |
Less than 12 months Unrealized Losses | 44 | 5 |
12 months or longer Fair Value | 0 | 0 |
12 months or longer Unrealized Losses | 0 | 0 |
Total Fair Value | 2,743 | 1,078 |
Total Unrealized Losses | 44 | 5 |
U.S. state and municipal securities [Member] | ||
Held to maturity securities: | ||
Less than 12 months Fair Value | 96 | |
Less than 12 months Unrealized Losses | 3 | |
12 months or longer Fair Value | 0 | |
12 months or longer Unrealized Losses | 0 | |
Total Fair Value | 96 | |
Total Unrealized Losses | 3 | |
Certificates of deposit [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 1,019 | 799 |
Less than 12 months Unrealized Losses | 1 | 1 |
12 months or longer Fair Value | 0 | 0 |
12 months or longer Unrealized Losses | 0 | 0 |
Total Fair Value | 1,019 | 799 |
Total Unrealized Losses | 1 | 1 |
U.S. agency notes [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 0 | 99 |
Less than 12 months Unrealized Losses | 0 | 0 |
12 months or longer Fair Value | 1,557 | 1,807 |
12 months or longer Unrealized Losses | 8 | 8 |
Total Fair Value | 1,557 | 1,906 |
Total Unrealized Losses | 8 | 8 |
Foreign government agency securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 48 | 50 |
Less than 12 months Unrealized Losses | 2 | 1 |
12 months or longer Fair Value | 0 | 0 |
12 months or longer Unrealized Losses | 0 | 0 |
Total Fair Value | 48 | 50 |
Total Unrealized Losses | 2 | 1 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 49 | 49 |
Less than 12 months Unrealized Losses | 1 | 1 |
12 months or longer Fair Value | 0 | 0 |
12 months or longer Unrealized Losses | 0 | 0 |
Total Fair Value | 49 | 49 |
Total Unrealized Losses | 1 | 1 |
Non-agency commercial mortgage-backed securities [Member] | ||
Held to maturity securities: | ||
Less than 12 months Fair Value | 764 | 607 |
Less than 12 months Unrealized Losses | 19 | 5 |
12 months or longer Fair Value | 0 | 0 |
12 months or longer Unrealized Losses | 0 | 0 |
Total Fair Value | 764 | 607 |
Total Unrealized Losses | $ 19 | $ 5 |
Investment Securities (Maturiti
Investment Securities (Maturities of Securities Available for Sale and Held to Maturity) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Available for sale securities, fair value | ||
Within 1 year | $ 8,306 | |
After 1 year through 5 years | 24,367 | |
After 5 years through 10 years | 8,805 | |
After 10 years | 10,349 | |
Fair Value | 51,827 | $ 49,995 |
Available for sale securities, amortized cost | ||
Within 1 year | 8,315 | |
After 1 year through 5 years | 24,480 | |
After 5 years through 10 years | 8,819 | |
After 10 years | 10,355 | |
Amortized Cost | 51,969 | 50,029 |
Held to maturity securities, fair value | ||
Within 1 year | 769 | |
After 1 year through 5 years | 18,050 | |
After 5 years through 10 years | 38,672 | |
After 10 years | 65,972 | |
Fair Value | 123,463 | 120,373 |
Held to maturity securities, amortized cost | ||
Within 1 year | 771 | |
After 1 year through 5 years | 18,270 | |
After 5 years through 10 years | 39,171 | |
After 10 years | 67,471 | |
Amortized Cost | 125,683 | 120,926 |
U.S. agency mortgage-backed securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 35 | |
After 1 year through 5 years | 3,454 | |
After 5 years through 10 years | 7,846 | |
After 10 years | 9,726 | |
Fair Value | 21,061 | 20,929 |
Available for sale securities, amortized cost | ||
Amortized Cost | 21,077 | 20,915 |
Held to maturity securities, fair value | ||
Within 1 year | 418 | |
After 1 year through 5 years | 13,032 | |
After 5 years through 10 years | 30,343 | |
After 10 years | 57,879 | |
Fair Value | 101,672 | 100,453 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 103,967 | 101,197 |
U.S. Treasury securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 2,441 | |
After 1 year through 5 years | 8,386 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 10,827 | 9,500 |
Available for sale securities, amortized cost | ||
Amortized Cost | 10,964 | 9,583 |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 215 | |
After 10 years | 0 | |
Fair Value | 215 | 220 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 223 | 223 |
Asset-backed securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 250 | |
After 1 year through 5 years | 7,844 | |
After 5 years through 10 years | 959 | |
After 10 years | 583 | |
Fair Value | 9,636 | 9,047 |
Available for sale securities, amortized cost | ||
Amortized Cost | 9,622 | 9,019 |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 1,046 | |
After 5 years through 10 years | 7,356 | |
After 10 years | 6,342 | |
Fair Value | 14,744 | 13,062 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 14,625 | 12,937 |
Corporate debt securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 3,183 | |
After 1 year through 5 years | 3,369 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 6,552 | 6,169 |
Available for sale securities, amortized cost | ||
Amortized Cost | 6,546 | 6,154 |
Held to maturity securities, fair value | ||
Within 1 year | 351 | |
After 1 year through 5 years | 3,368 | |
After 5 years through 10 years | 585 | |
After 10 years | 0 | |
Fair Value | 4,304 | 4,086 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 4,340 | 4,078 |
Certificates of deposit [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 772 | |
After 1 year through 5 years | 1,019 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 1,791 | 2,041 |
Available for sale securities, amortized cost | ||
Amortized Cost | 1,790 | 2,040 |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 200 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 200 | 200 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 200 | 200 |
U.S. agency notes [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 1,310 | |
After 1 year through 5 years | 247 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 1,557 | 1,906 |
Available for sale securities, amortized cost | ||
Amortized Cost | 1,565 | 1,914 |
U.S. state and municipal securities [Member] | ||
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 173 | |
After 10 years | 1,089 | |
Fair Value | 1,262 | 1,304 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 1,245 | 1,247 |
Commercial paper [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 315 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 315 | 313 |
Available for sale securities, amortized cost | ||
Amortized Cost | 315 | 313 |
Foreign government agency securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 48 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 48 | 50 |
Available for sale securities, amortized cost | ||
Amortized Cost | 50 | 51 |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 49 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 49 | 49 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 50 | 50 |
Non-agency commercial mortgage-backed securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 0 | |
After 10 years | 40 | |
Fair Value | 40 | 40 |
Available for sale securities, amortized cost | ||
Amortized Cost | 40 | 40 |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 355 | |
After 5 years through 10 years | 0 | |
After 10 years | 662 | |
Fair Value | 1,017 | 999 |
Held to maturity securities, amortized cost | ||
Amortized Cost | $ 1,033 | $ 994 |
Investment Securities (Proceeds
Investment Securities (Proceeds and Gross Realized Gains And Losses from Sales of Securities Available for Sale) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds | $ 0 | $ 1,064 | [1] |
Gross realized gains | $ 0 | $ 1 | |
[1] | Adjusted for the retrospective adoption of ASU 2016-18. See Note 2. |
Bank Loans and Related Allowa53
Bank Loans and Related Allowance for Loan Losses (Composition of Bank Loans and Delinquency Analysis by Loan Segment) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | $ 16,362,000,000 | $ 16,448,000,000 | ||
Past due and other nonaccrual loans | 54,000,000 | 56,000,000 | ||
Total loans | 16,416,000,000 | 16,504,000,000 | ||
Allowance for loan losses | 27,000,000 | 26,000,000 | $ 26,000,000 | $ 26,000,000 |
Total bank loans - net | 16,389,000,000 | 16,478,000,000 | ||
Loans 90 days past due and still accruing | 0 | 0 | ||
30-59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 20,000,000 | 18,000,000 | ||
60-89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 5,000,000 | 9,000,000 | ||
More Than 90 Days Past Due and Other Nonaccrual Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 29,000,000 | 29,000,000 | ||
First Mortgage [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 10,041,000,000 | 9,983,000,000 | ||
Past due and other nonaccrual loans | 37,000,000 | 33,000,000 | ||
Total loans | 10,078,000,000 | 10,016,000,000 | ||
Allowance for loan losses | 17,000,000 | 16,000,000 | 17,000,000 | 17,000,000 |
Total bank loans - net | 10,061,000,000 | 10,000,000,000 | ||
First Mortgage [Member] | 30-59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 15,000,000 | 14,000,000 | ||
First Mortgage [Member] | 60-89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 3,000,000 | 2,000,000 | ||
First Mortgage [Member] | More Than 90 Days Past Due and Other Nonaccrual Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 19,000,000 | 17,000,000 | ||
HELOCs [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 1,781,000,000 | 1,928,000,000 | ||
Past due and other nonaccrual loans | 15,000,000 | 15,000,000 | ||
Total loans | 1,796,000,000 | 1,943,000,000 | ||
Allowance for loan losses | 7,000,000 | 8,000,000 | 8,000,000 | 8,000,000 |
Total bank loans - net | 1,789,000,000 | 1,935,000,000 | ||
HELOCs [Member] | 30-59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 4,000,000 | 0 | ||
HELOCs [Member] | 60-89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 1,000,000 | 3,000,000 | ||
HELOCs [Member] | More Than 90 Days Past Due and Other Nonaccrual Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 10,000,000 | 12,000,000 | ||
Pledged asset lines [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 4,360,000,000 | 4,361,000,000 | ||
Past due and other nonaccrual loans | 2,000,000 | 8,000,000 | ||
Total loans | 4,362,000,000 | 4,369,000,000 | ||
Allowance for loan losses | 0 | 0 | ||
Total bank loans - net | 4,362,000,000 | 4,369,000,000 | ||
Pledged asset lines [Member] | 30-59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 1,000,000 | 4,000,000 | ||
Pledged asset lines [Member] | 60-89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 1,000,000 | 4,000,000 | ||
Pledged asset lines [Member] | More Than 90 Days Past Due and Other Nonaccrual Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 0 | 0 | ||
Other [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 180,000,000 | 176,000,000 | ||
Past due and other nonaccrual loans | 0 | 0 | ||
Total loans | 180,000,000 | 176,000,000 | ||
Allowance for loan losses | 3,000,000 | 2,000,000 | $ 1,000,000 | $ 1,000,000 |
Total bank loans - net | 177,000,000 | 174,000,000 | ||
Other [Member] | 30-59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 0 | 0 | ||
Other [Member] | 60-89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 0 | 0 | ||
Other [Member] | More Than 90 Days Past Due and Other Nonaccrual Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 0 | 0 | ||
First Mortgage and HELOC [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unamortized premiums and discounts and direct origination costs | $ 75,000,000 | $ 77,000,000 | ||
First Mortgage and HELOC [Member] | Loans, Geographic Area [Member] | California [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Concentration risk percentage | 48.00% | 48.00% |
Bank Loans and Related Allowa54
Bank Loans and Related Allowance for Loan Losses (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total bank loans | $ 16,416 | $ 16,504 |
First Mortgage and HELOC [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 11,100 | |
Adjustable Rate First Mortgage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Bank loans | $ 9,100 | |
Percent of loans with interest-only payments | 33.00% | |
Percent of interest only adjustable rate | 60.00% | |
Adjustable Rate First Mortgage [Member] | Minimum [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fixed rate interest rate period | 3 years | |
Interest-only reset period | 3 years | |
Adjustable Rate First Mortgage [Member] | Maximum [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fixed rate interest rate period | 10 years | |
HELOCs [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan term | 30 years | |
Initial draw period | 10 years | |
Converting to amortizing loans period | 20 years | |
Total bank loans | $ 1,796 | $ 1,943 |
Percent of loan balance outstanding, borrowers paid only minimum due | 36.00% | |
Home Equity Secured By Second Liens [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total bank loans | $ 1,400 |
Bank Loans and Related Allowa55
Bank Loans and Related Allowance for Loan Losses (Changes in Allowance for Loan Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | $ 26 | $ 26 |
Provision for loan losses | 1 | 0 |
Balance at end of period | 27 | 26 |
First Mortgage [Member] | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 16 | 17 |
Provision for loan losses | 1 | 0 |
Balance at end of period | 17 | 17 |
HELOCs [Member] | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 8 | 8 |
Provision for loan losses | (1) | 0 |
Balance at end of period | 7 | 8 |
Other [Member] | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 2 | 1 |
Provision for loan losses | 1 | 0 |
Balance at end of period | $ 3 | $ 1 |
Bank Loans and Related Allowa56
Bank Loans and Related Allowance for Loan Losses (Impaired Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings | $ 8 | $ 11 |
Total impaired assets | 39 | 42 |
Nonperforming Financial Instruments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonperforming assets | 31 | 31 |
Nonperforming Financial Instruments [Member] | Nonaccrual Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonperforming assets | 29 | 28 |
Nonperforming Financial Instruments [Member] | Other Real Estate Owned [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonperforming assets | $ 2 | $ 3 |
Bank Loans and Related Allowa57
Bank Loans and Related Allowance for Loan Losses (Credit Quality Indicators of Bank Loan Portfolio) (Details) $ in Millions | Mar. 31, 2018USD ($)credit_rating | Dec. 31, 2017USD ($)credit_rating |
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 16,416 | $ 16,504 |
First Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 10,078 | $ 10,016 |
Weighted Average Updated FICO | credit_rating | 777 | 775 |
Percent of Loans on Nonaccrual Status | 0.13% | 0.14% |
First Mortgage [Member] | Origination FICO Score Below 620 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 6 | $ 6 |
First Mortgage [Member] | Origination FICO Score 620 Through 679 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 90 | 89 |
First Mortgage [Member] | Origination FICO Score 680 Through 739 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,564 | 1,569 |
First Mortgage [Member] | Origination FICO Score 740 and Above [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 8,418 | 8,352 |
First Mortgage [Member] | Year of origination Pre 2014 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 2,570 | 2,804 |
First Mortgage [Member] | Year of origination 2014 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 499 | 530 |
First Mortgage [Member] | Year of origination 2015 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,167 | 1,218 |
First Mortgage [Member] | Year of origination 2016 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 2,813 | 2,886 |
First Mortgage [Member] | Year of origination 2017 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 2,556 | 2,578 |
First Mortgage [Member] | Year of origination 2018 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 473 | |
First Mortgage [Member] | Estimated Current LTV 70% and Below [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 9,114 | $ 9,046 |
Weighted Average Updated FICO | credit_rating | 778 | 775 |
Percent of Loans on Nonaccrual Status | 0.08% | 0.09% |
First Mortgage [Member] | Estimated Current LTV Greater Than 70% through 90% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 955 | $ 961 |
Weighted Average Updated FICO | credit_rating | 770 | 769 |
Percent of Loans on Nonaccrual Status | 0.58% | 0.46% |
First Mortgage [Member] | Estimated Current LTV Greater Than 90% through 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 6 | $ 5 |
Weighted Average Updated FICO | credit_rating | 713 | 714 |
Percent of Loans on Nonaccrual Status | 6.11% | 10.49% |
First Mortgage [Member] | Estimated Current LTV Greater Than 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 3 | $ 4 |
Weighted Average Updated FICO | credit_rating | 738 | 713 |
Percent of Loans on Nonaccrual Status | 7.67% | 6.23% |
First Mortgage [Member] | Origination Loan to Value Ratio 70% and Below [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 7,627 | $ 7,569 |
First Mortgage [Member] | Origination Loan to Value Ratio Greater Than 70% Through 90% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 2,445 | 2,441 |
First Mortgage [Member] | Origination Loan to Value Ratio Greater Than 90% Through 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 6 | 6 |
HELOCs [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 1,796 | $ 1,943 |
Weighted Average Updated FICO | credit_rating | 771 | 770 |
Utilization Rate | 32.00% | 33.00% |
Percent of Loans on Nonaccrual Status | 0.26% | 0.27% |
HELOCs [Member] | Origination FICO Score Below 620 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 1 | $ 1 |
HELOCs [Member] | Origination FICO Score 620 Through 679 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 9 | 10 |
HELOCs [Member] | Origination FICO Score 680 Through 739 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 339 | 365 |
HELOCs [Member] | Origination FICO Score 740 and Above [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,447 | 1,567 |
HELOCs [Member] | Year of origination Pre 2014 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,364 | 1,496 |
HELOCs [Member] | Year of origination 2014 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 105 | 116 |
HELOCs [Member] | Year of origination 2015 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 115 | 128 |
HELOCs [Member] | Year of origination 2016 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 101 | 111 |
HELOCs [Member] | Year of origination 2017 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 97 | 92 |
HELOCs [Member] | Year of origination 2018 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 14 | |
HELOCs [Member] | Estimated Current LTV 70% and Below [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 1,639 | $ 1,773 |
Weighted Average Updated FICO | credit_rating | 773 | 772 |
Utilization Rate | 31.00% | 32.00% |
Percent of Loans on Nonaccrual Status | 0.17% | 0.18% |
HELOCs [Member] | Estimated Current LTV Greater Than 70% through 90% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 139 | $ 148 |
Weighted Average Updated FICO | credit_rating | 757 | 755 |
Utilization Rate | 45.00% | 47.00% |
Percent of Loans on Nonaccrual Status | 0.86% | 0.84% |
HELOCs [Member] | Estimated Current LTV Greater Than 90% through 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 11 | $ 14 |
Weighted Average Updated FICO | credit_rating | 746 | 742 |
Utilization Rate | 68.00% | 64.00% |
Percent of Loans on Nonaccrual Status | 1.47% | 2.85% |
HELOCs [Member] | Estimated Current LTV Greater Than 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 7 | $ 8 |
Weighted Average Updated FICO | credit_rating | 714 | 718 |
Utilization Rate | 72.00% | 72.00% |
Percent of Loans on Nonaccrual Status | 8.46% | 4.91% |
HELOCs [Member] | Origination Loan to Value Ratio 70% and Below [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 1,257 | $ 1,360 |
HELOCs [Member] | Origination Loan to Value Ratio Greater Than 70% Through 90% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 530 | 574 |
HELOCs [Member] | Origination Loan to Value Ratio Greater Than 90% Through 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 9 | 9 |
Pledged asset lines [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 4,362 | 4,369 |
Pledged asset lines [Member] | Weighted Average Loan to Value Ratio =70% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 4,362 | $ 4,369 |
Weighted Average Updated FICO | credit_rating | 767 | 765 |
Utilization Rate | 39.00% | 41.00% |
Percent of Loans on Nonaccrual Status | 0.00% | 0.00% |
Bank Loans and Related Allowa58
Bank Loans and Related Allowance for Loan Losses (Convert to Amortizing Loans) (Details) - HELOCs [Member] $ in Millions | Mar. 31, 2018USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Converted to an amortizing loan by period end | $ 451 |
Within 1 year | 495 |
1 year – 3 years | 168 |
3 years – 5 years | 145 |
5 years | 537 |
Total | $ 1,796 |
Variable Interest Entities (Agg
Variable Interest Entities (Aggregate Assets, Liabilities and Maximum Exposure to Loss) (Details) - Variable Interest Entity, Not Primary Beneficiary [Member] - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Aggregate assets | $ 407 | $ 373 |
Aggregate liabilities | 217 | 203 |
Maximum exposure to loss | 462 | 429 |
LIHTC Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Aggregate assets | 340 | 304 |
Aggregate liabilities | 217 | 203 |
Maximum exposure to loss | 340 | 304 |
Other CRA Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Aggregate assets | 67 | 69 |
Aggregate liabilities | 0 | 0 |
Maximum exposure to loss | $ 122 | $ 125 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - LIHTC Investments [Member] | 3 Months Ended |
Mar. 31, 2018 | |
Minimum [Member] | |
Variable Interest Entity [Line Items] | |
Commitment, expected payment date | 2,018 |
Maximum [Member] | |
Variable Interest Entity [Line Items] | |
Commitment, expected payment date | 2,021 |
Bank Deposits (Details)
Bank Deposits (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Interest-bearing deposits: | ||
Deposits swept from brokerage accounts | $ 168,854 | $ 148,212 |
Checking | 13,530 | 13,388 |
Savings and other | 6,925 | 7,264 |
Total interest-bearing deposits | 189,309 | 168,864 |
Non-interest-bearing deposits | 875 | 792 |
Total bank deposits | $ 190,184 | $ 169,656 |
Borrowings (Long-term Debt Incl
Borrowings (Long-term Debt Including Unamortized Debt Discounts and Premiums) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Senior Notes | $ 4,106 | $ 4,731 |
Unamortized discount — net | (14) | (14) |
Debt issuance costs | (23) | (25) |
Total long-term debt | $ 4,128 | 4,753 |
Lease term | 20 years | |
Senior Notes [Member] | Senior Notes Due March 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 1.50% | |
Senior Notes | $ 0 | 625 |
Senior Notes [Member] | Senior Notes Due July 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 2.20% | |
Senior Notes | $ 275 | 275 |
Senior Notes [Member] | Senior Notes Due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 4.45% | |
Senior Notes | $ 700 | 700 |
Senior Notes [Member] | Senior Notes Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.225% | |
Senior Notes | $ 256 | 256 |
Senior Notes [Member] | Senior Notes Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 2.65% | |
Senior Notes | $ 800 | 800 |
Senior Notes [Member] | Senior Notes Due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.00% | |
Senior Notes | $ 375 | 375 |
Senior Notes [Member] | Senior Notes Due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.45% | |
Senior Notes | $ 350 | 350 |
Senior Notes [Member] | Senior Notes Due 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.20% | |
Senior Notes | $ 650 | 650 |
Senior Notes [Member] | Senior Notes Due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.20% | |
Senior Notes | $ 700 | 700 |
Finance lease obligation [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 5.45% | |
Finance lease obligation | $ 59 | $ 61 |
Borrowings (Annual Maturities o
Borrowings (Annual Maturities on Long-term Debt Outstanding) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
2,018 | $ 281 | |
2,019 | 8 | |
2,020 | 709 | |
2,021 | 9 | |
2,022 | 266 | |
Thereafter | 2,892 | |
Total maturities | 4,165 | |
Unamortized discount, net | (14) | $ (14) |
Debt issuance costs | (23) | (25) |
Total long-term debt | $ 4,128 | $ 4,753 |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) - Federal Home Loan Bank Advances [Member] - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
CSB [Member] | ||
Line of Credit Facility [Line Items] | ||
FHLB stock | $ 233 | $ 405 |
Secured Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, current borrowing capacity | 31,400 | 32,300 |
Borrowings on line of credit | $ 0 | $ 15,000 |
Commitments and Contingencies65
Commitments and Contingencies (Commitments to Extend/Purchase) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Commitments to purchase | $ 10,932 | $ 10,368 | |
First Mortgage [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Payments to acquire loans | 513 | $ 665 | |
Commitments to purchase | 377 | 308 | |
HELOCs [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Payments to acquire loans | 107 | $ 118 | |
Home Equity Loans and Lines of Credit Pledged Asset Lines and Other Lines of Credit [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Commitments to extend credit related to unused HELOCs, PALs, and other lines of credit | $ 10,555 | $ 10,060 |
Commitments and Contingencies66
Commitments and Contingencies (Details) - USD ($) | Mar. 31, 2018 | Aug. 28, 2008 |
Loss Contingencies [Line Items] | ||
Aggregate face amount of letter of credit agreements | $ 225,000,000 | |
Performance Guarantee [Member] | ||
Loss Contingencies [Line Items] | ||
Liability for guarantees | 0 | |
Margin Requirements [Member] | ||
Loss Contingencies [Line Items] | ||
Funds drawn under LOC's | $ 0 | |
Bond Market Fund Litigation [Member] | CMOs and Mortgage-backed Securities [Member] | ||
Loss Contingencies [Line Items] | ||
Alleged minimum percentage of fund assets invested in CMOs and mortgage-backed securities without obtaining shareholder vote, more than | 25.00% |
Financial Instruments Subject67
Financial Instruments Subject to Off-Balance Sheet Credit Risk (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Securities Financing Transaction, Fair Value [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value of borrowed securities from other broker-dealers to fulfill short sales by clients | $ 237 | $ 215 |
Financial Instruments Subject68
Financial Instruments Subject to Off-Balance Sheet Credit Risk (Offsetting Assets and Liabilities) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Resale agreements | ||
Gross Assets | $ 4,434 | $ 6,596 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 4,434 | 6,596 |
Counterparty Offsetting | 0 | 0 |
Collateral | (4,434) | (6,596) |
Net Amount | 0 | 0 |
Securities borrowed | ||
Gross Assets | 241 | 222 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 241 | 222 |
Counterparty Offsetting | (172) | (199) |
Collateral | (68) | (22) |
Net Amount | 1 | 1 |
Total Gross Assets | 4,675 | 6,818 |
Total Assets, Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | 0 |
Total Assets, Net Amounts Presented in the Condensed Consolidated Balance Sheets | 4,675 | 6,818 |
Total Assets, Gross Amounts Not Offset in the Consolidated Balance Sheet, Counterparty Offsetting | (172) | (199) |
Total Assets, Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral | (4,502) | (6,618) |
Total Assets, Net Amount | 1 | 1 |
Securities loaned | ||
Gross Liabilities | 800 | 966 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 800 | 966 |
Counterparty Offsetting | (172) | (199) |
Collateral | (558) | (670) |
Net Amount | 70 | 97 |
Total Gross Liabilities | 800 | 966 |
Total Liabilities, Net Amounts Presented in the Consolidated Balance Sheet | 800 | 966 |
Total Liabilities, Gross Amounts Not Offset in the Consolidated Balance Sheet, Counterparty Offsetting | (172) | (199) |
Total Liabilities, Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral | (558) | (670) |
Total Liabilities, Net Amount | 70 | 97 |
Offsetting Assets [Line Items] | ||
Fair value of client securities available to be pledged | $ 27,296 | $ 25,905 |
Resale And Repurchase Agreements [Member] | ||
Offsetting Assets [Line Items] | ||
Percentage of collateral to related assets | 102.00% | 102.00% |
Fair value of client securities available to be pledged | $ 4,500 | $ 6,700 |
Financial Instruments Subject69
Financial Instruments Subject to Off-Balance Sheet Credit Risk (Summary of the Fair Value of Client Securities Available to Utilize as Collateral and Amounts Pledged) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Securities Financing Transaction [Line Items] | ||
Fair value of client securities available to be pledged | $ 27,296 | $ 25,905 |
Total collateral pledged | 5,734 | 5,075 |
Fulfillment of Requirements with the Options Clearing Corporation [Member] | ||
Securities Financing Transaction [Line Items] | ||
Total collateral pledged | 3,368 | 2,280 |
Fulfillment of Client Short Sales [Member] | ||
Securities Financing Transaction [Line Items] | ||
Total collateral pledged | 1,713 | 2,011 |
Securities Lending to Other Broker-Dealers [Member] | ||
Securities Financing Transaction [Line Items] | ||
Total collateral pledged | 653 | 784 |
Fully Paid Client Securities [Member] | ||
Securities Financing Transaction [Line Items] | ||
Total collateral pledged | $ 74 | $ 78 |
Fair Values of Assets and Lia70
Fair Values of Assets and Liabilities (Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | $ 500 | $ 539 |
Available for sale securities | 51,827 | 49,995 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,049 | 2,727 |
Investments segregated and on deposit for regulatory purposes | 5,808 | 5,856 |
Other securities owned | 500 | 539 |
Available for sale securities | 51,827 | 49,995 |
Total | 59,184 | 59,117 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,049 | 2,727 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Certificates of deposit [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 2,147 | 2,198 |
Available for sale securities | 1,791 | 2,041 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | U.S. Government securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 3,661 | 3,658 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Equity and bond mutual funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 371 | 318 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Schwab Funds money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 59 | 135 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | State and municipal debt obligations [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 36 | 52 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Equity, U.S. Government and corporate debt, and other securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 34 | 34 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | U.S. agency mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 21,061 | 20,929 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | U.S. Treasury securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 10,827 | 9,500 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 9,636 | 9,047 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 6,552 | 6,169 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | U.S. agency notes [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 1,557 | 1,906 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 315 | 313 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Foreign government agency securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 48 | 50 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 40 | 40 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,049 | 2,727 |
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Other securities owned | 432 | 455 |
Available for sale securities | 0 | 0 |
Total | 1,481 | 3,182 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,049 | 2,727 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Certificates of deposit [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Government securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity and bond mutual funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 371 | 318 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Schwab Funds money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 59 | 135 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | State and municipal debt obligations [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity, U.S. Government and corporate debt, and other securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 2 | 2 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. agency mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasury securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. agency notes [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Foreign government agency securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Investments segregated and on deposit for regulatory purposes | 5,808 | 5,856 |
Other securities owned | 68 | 84 |
Available for sale securities | 51,827 | 49,995 |
Total | 57,703 | 55,935 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Certificates of deposit [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 2,147 | 2,198 |
Available for sale securities | 1,791 | 2,041 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Government securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 3,661 | 3,658 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Equity and bond mutual funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Schwab Funds money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | State and municipal debt obligations [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 36 | 52 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Equity, U.S. Government and corporate debt, and other securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 32 | 32 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. agency mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 21,061 | 20,929 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 10,827 | 9,500 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 9,636 | 9,047 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 6,552 | 6,169 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. agency notes [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 1,557 | 1,906 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 315 | 313 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Foreign government agency securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 48 | 50 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 40 | 40 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Other securities owned | 0 | 0 |
Available for sale securities | 0 | 0 |
Total | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | Money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | Certificates of deposit [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Government securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | Equity and bond mutual funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | Schwab Funds money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | State and municipal debt obligations [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | Equity, U.S. Government and corporate debt, and other securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. agency mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Treasury securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. agency notes [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | Foreign government agency securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $ 0 | $ 0 |
Fair Values of Assets and Lia71
Fair Values of Assets and Liabilities (Fair Value of Other Financial Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Held to maturity securities | $ 123,463 | $ 120,373 |
Carrying Amount [Member] | ||
Assets: | ||
Cash and cash equivalents | 13,096 | 11,490 |
Cash and investments segregated and on deposit for regulatory purposes | 7,002 | 9,277 |
Receivables from brokers, dealers, and clearing organizations | 894 | 649 |
Receivables from brokerage clients — net | 21,144 | 20,568 |
Held to maturity securities | 125,683 | 120,926 |
Bank loans – net | 16,389 | 16,478 |
Other assets | 656 | 781 |
Total | 184,864 | 180,169 |
Liabilities: | ||
Bank deposits | 190,184 | 169,656 |
Payables to brokers, dealers, and clearing organizations | 1,122 | 1,287 |
Payables to brokerage clients | 31,088 | 31,243 |
Accrued expenses and other liabilities | 1,173 | 1,463 |
Short-term borrowings | 15,000 | |
Long-term debt | 4,128 | 4,753 |
Total | 227,695 | 223,402 |
Carrying Amount [Member] | First Mortgage [Member] | ||
Assets: | ||
Bank loans – net | 10,061 | 10,000 |
Carrying Amount [Member] | HELOCs [Member] | ||
Assets: | ||
Bank loans – net | 1,789 | 1,935 |
Carrying Amount [Member] | Pledged asset lines [Member] | ||
Assets: | ||
Bank loans – net | 4,362 | 4,369 |
Carrying Amount [Member] | Other [Member] | ||
Assets: | ||
Bank loans – net | 177 | 174 |
Carrying Amount [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 103,967 | 101,197 |
Carrying Amount [Member] | Asset-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 14,625 | 12,937 |
Carrying Amount [Member] | Corporate debt securities [Member] | ||
Assets: | ||
Held to maturity securities | 4,340 | 4,078 |
Carrying Amount [Member] | U.S. state and municipal securities [Member] | ||
Assets: | ||
Held to maturity securities | 1,245 | 1,247 |
Carrying Amount [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 1,033 | 994 |
Carrying Amount [Member] | Certificates of deposit [Member] | ||
Assets: | ||
Held to maturity securities | 200 | 200 |
Carrying Amount [Member] | Foreign government agency securities [Member] | ||
Assets: | ||
Held to maturity securities | 50 | 50 |
Carrying Amount [Member] | U.S. Treasury securities [Member] | ||
Assets: | ||
Held to maturity securities | 223 | 223 |
Portion at Other than Fair Value Measurement [Member] | ||
Assets: | ||
Cash and cash equivalents | 13,096 | 11,490 |
Cash and investments segregated and on deposit for regulatory purposes | 7,002 | 9,277 |
Receivables from brokers, dealers, and clearing organizations | 894 | 649 |
Receivables from brokerage clients — net | 21,144 | 20,568 |
Held to maturity securities | 123,463 | 120,373 |
Bank loans – net | 16,238 | 16,485 |
Other assets | 656 | 781 |
Total | 182,493 | 179,623 |
Liabilities: | ||
Bank deposits | 190,184 | 169,656 |
Payables to brokers, dealers, and clearing organizations | 1,122 | 1,287 |
Payables to brokerage clients | 31,088 | 31,243 |
Accrued expenses and other liabilities | 1,173 | 1,463 |
Short-term borrowings | 15,000 | |
Long-term debt | 4,077 | 4,811 |
Total | 227,644 | 223,460 |
Portion at Other than Fair Value Measurement [Member] | First Mortgage [Member] | ||
Assets: | ||
Bank loans – net | 9,865 | 9,917 |
Portion at Other than Fair Value Measurement [Member] | HELOCs [Member] | ||
Assets: | ||
Bank loans – net | 1,834 | 2,025 |
Portion at Other than Fair Value Measurement [Member] | Pledged asset lines [Member] | ||
Assets: | ||
Bank loans – net | 4,362 | 4,369 |
Portion at Other than Fair Value Measurement [Member] | Other [Member] | ||
Assets: | ||
Bank loans – net | 177 | 174 |
Portion at Other than Fair Value Measurement [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 101,672 | 100,453 |
Portion at Other than Fair Value Measurement [Member] | Asset-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 14,744 | 13,062 |
Portion at Other than Fair Value Measurement [Member] | Corporate debt securities [Member] | ||
Assets: | ||
Held to maturity securities | 4,304 | 4,086 |
Portion at Other than Fair Value Measurement [Member] | U.S. state and municipal securities [Member] | ||
Assets: | ||
Held to maturity securities | 1,262 | 1,304 |
Portion at Other than Fair Value Measurement [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 1,017 | 999 |
Portion at Other than Fair Value Measurement [Member] | Certificates of deposit [Member] | ||
Assets: | ||
Held to maturity securities | 200 | 200 |
Portion at Other than Fair Value Measurement [Member] | Foreign government agency securities [Member] | ||
Assets: | ||
Held to maturity securities | 49 | 49 |
Portion at Other than Fair Value Measurement [Member] | U.S. Treasury securities [Member] | ||
Assets: | ||
Held to maturity securities | 215 | 220 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Cash and investments segregated and on deposit for regulatory purposes | 0 | 0 |
Receivables from brokers, dealers, and clearing organizations | 0 | 0 |
Receivables from brokerage clients — net | 0 | 0 |
Held to maturity securities | 0 | 0 |
Bank loans – net | 0 | 0 |
Other assets | 0 | 0 |
Total | 0 | 0 |
Liabilities: | ||
Bank deposits | 0 | 0 |
Payables to brokers, dealers, and clearing organizations | 0 | 0 |
Payables to brokerage clients | 0 | 0 |
Accrued expenses and other liabilities | 0 | 0 |
Short-term borrowings | 0 | |
Long-term debt | 0 | 0 |
Total | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | First Mortgage [Member] | ||
Assets: | ||
Bank loans – net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | HELOCs [Member] | ||
Assets: | ||
Bank loans – net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Pledged asset lines [Member] | ||
Assets: | ||
Bank loans – net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other [Member] | ||
Assets: | ||
Bank loans – net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Asset-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate debt securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. state and municipal securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Certificates of deposit [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Foreign government agency securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasury securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Cash and cash equivalents | 13,096 | 11,490 |
Cash and investments segregated and on deposit for regulatory purposes | 7,002 | 9,277 |
Receivables from brokers, dealers, and clearing organizations | 894 | 649 |
Receivables from brokerage clients — net | 21,144 | 20,568 |
Held to maturity securities | 123,463 | 120,373 |
Bank loans – net | 16,238 | 16,485 |
Other assets | 656 | 781 |
Total | 182,493 | 179,623 |
Liabilities: | ||
Bank deposits | 190,184 | 169,656 |
Payables to brokers, dealers, and clearing organizations | 1,122 | 1,287 |
Payables to brokerage clients | 31,088 | 31,243 |
Accrued expenses and other liabilities | 1,173 | 1,463 |
Short-term borrowings | 15,000 | |
Long-term debt | 4,077 | 4,811 |
Total | 227,644 | 223,460 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | First Mortgage [Member] | ||
Assets: | ||
Bank loans – net | 9,865 | 9,917 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | HELOCs [Member] | ||
Assets: | ||
Bank loans – net | 1,834 | 2,025 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Pledged asset lines [Member] | ||
Assets: | ||
Bank loans – net | 4,362 | 4,369 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other [Member] | ||
Assets: | ||
Bank loans – net | 177 | 174 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 101,672 | 100,453 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Asset-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 14,744 | 13,062 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate debt securities [Member] | ||
Assets: | ||
Held to maturity securities | 4,304 | 4,086 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. state and municipal securities [Member] | ||
Assets: | ||
Held to maturity securities | 1,262 | 1,304 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 1,017 | 999 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Certificates of deposit [Member] | ||
Assets: | ||
Held to maturity securities | 200 | 200 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Foreign government agency securities [Member] | ||
Assets: | ||
Held to maturity securities | 49 | 49 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury securities [Member] | ||
Assets: | ||
Held to maturity securities | 215 | 220 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Cash and investments segregated and on deposit for regulatory purposes | 0 | 0 |
Receivables from brokers, dealers, and clearing organizations | 0 | 0 |
Receivables from brokerage clients — net | 0 | 0 |
Held to maturity securities | 0 | 0 |
Bank loans – net | 0 | 0 |
Other assets | 0 | 0 |
Total | 0 | 0 |
Liabilities: | ||
Bank deposits | 0 | 0 |
Payables to brokers, dealers, and clearing organizations | 0 | 0 |
Payables to brokerage clients | 0 | 0 |
Accrued expenses and other liabilities | 0 | 0 |
Short-term borrowings | 0 | |
Long-term debt | 0 | 0 |
Total | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | First Mortgage [Member] | ||
Assets: | ||
Bank loans – net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | HELOCs [Member] | ||
Assets: | ||
Bank loans – net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Pledged asset lines [Member] | ||
Assets: | ||
Bank loans – net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other [Member] | ||
Assets: | ||
Bank loans – net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Asset-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Corporate debt securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. state and municipal securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Certificates of deposit [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Foreign government agency securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Treasury securities [Member] | ||
Assets: | ||
Held to maturity securities | $ 0 | $ 0 |
Stockholders' Equity (Preferred
Stockholders' Equity (Preferred Stock Issued and Outstanding) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Class of Stock [Line Items] | ||
Shares issued (in shares) | 1,761,000 | 1,761,000 |
Shares outstanding (in shares) | 1,761,000 | 1,761,000 |
Carrying Value | $ 2,793 | $ 2,793 |
Series C Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares issued (in shares) | 600,000 | 600,000 |
Shares outstanding (in shares) | 600,000 | 600,000 |
Liquidation preference per share (USD per share) | $ 1,000 | |
Carrying Value | $ 585 | $ 585 |
Dividend Rate in Effect | 6.00% | |
Series D Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares issued (in shares) | 750,000 | 750,000 |
Shares outstanding (in shares) | 750,000 | 750,000 |
Liquidation preference per share (USD per share) | $ 1,000 | |
Carrying Value | $ 728 | $ 728 |
Dividend Rate in Effect | 5.95% | |
Series A Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares issued (in shares) | 400,000 | 400,000 |
Shares outstanding (in shares) | 400,000 | 400,000 |
Liquidation preference per share (USD per share) | $ 1,000 | |
Carrying Value | $ 397 | $ 397 |
Dividend Rate in Effect | 7.00% | |
Series A Preferred Stock [Member] | LIBOR [Member] | ||
Class of Stock [Line Items] | ||
Floating Annual Rate | 4.82% | |
Series E Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares issued (in shares) | 6,000 | 6,000 |
Shares outstanding (in shares) | 6,000 | 6,000 |
Liquidation preference per share (USD per share) | $ 100,000 | |
Carrying Value | $ 591 | $ 591 |
Dividend Rate in Effect | 4.625% | |
Series E Preferred Stock [Member] | LIBOR [Member] | ||
Class of Stock [Line Items] | ||
Floating Annual Rate | 3.315% | |
Series F Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares issued (in shares) | 5,000 | 5,000 |
Shares outstanding (in shares) | 5,000 | 5,000 |
Liquidation preference per share (USD per share) | $ 100,000 | |
Carrying Value | $ 492 | $ 492 |
Dividend Rate in Effect | 5.00% | |
Series F Preferred Stock [Member] | LIBOR [Member] | ||
Class of Stock [Line Items] | ||
Floating Annual Rate | 2.575% |
Accumulated Other Comprehensi73
Accumulated Other Comprehensive Income (Components of Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other comprehensive income (loss) before tax | ||
Net unrealized gain (loss) | $ (108) | $ 52 |
Reclassification of net unrealized loss on securities transferred to held to maturity | 0 | 227 |
Other reclassifications included in other revenue | 0 | (1) |
Change in net unrealized gain (loss) on held to maturity securities: | ||
Reclassification of net unrealized loss on securities transferred from available for sale | 0 | (227) |
Amortization of amounts previously recorded upon transfer from available for sale | 9 | 2 |
Other | 0 | (3) |
Other comprehensive income (loss), before tax | (99) | 50 |
Tax Effect | ||
Net unrealized gain (loss) | 26 | (19) |
Reclassification of net unrealized loss on securities transferred to held to maturity | 0 | (85) |
Other reclassifications included in other revenue | 0 | 0 |
Change in net unrealized gain (loss) on held to maturity securities: | ||
Reclassification of net unrealized loss on securities transferred from available for sale (1) | 0 | 85 |
Amortization of amounts previously recorded upon transfer from available for sale | (2) | (1) |
Other | 0 | 1 |
Other comprehensive income (loss) | 24 | (19) |
Net of Tax | ||
Net unrealized gain (loss) | (82) | 33 |
Reclassification of net unrealized loss on securities transferred to held to maturity | 0 | 142 |
Other reclassifications included in other revenue | 0 | (1) |
Change in net unrealized gain (loss) on held to maturity securities: | ||
Reclassification of net unrealized loss on securities transferred from available for sale | 0 | (142) |
Amortization of amounts previously recorded upon transfer from available for sale | 7 | 1 |
Other | 0 | (2) |
Other comprehensive income (loss), net of tax | $ (75) | $ 31 |
Accumulated Other Comprehensi74
Accumulated Other Comprehensive Income (Accumulated Other Comprehensive Income Balances) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income | ||
Beginning Balance | $ (152) | $ (163) |
Other net changes | (75) | 31 |
Ending Balance | (260) | (132) |
Net unrealized gain (loss) on available for sale securities [Member] | ||
Accumulated Other Comprehensive Income | ||
Other net changes | (82) | 33 |
Reclassification of Securities Transferred to Held to Maturity [Member] | ||
Accumulated Other Comprehensive Income | ||
Other net changes | 142 | |
Other Reclassifications in Other Revenue Available for Sale Securities [Member] | ||
Accumulated Other Comprehensive Income | ||
Other net changes | (1) | |
Reclassification of Securities Transferred from Available for Sale [Member] | ||
Accumulated Other Comprehensive Income | ||
Other net changes | (142) | |
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale [Member] | ||
Accumulated Other Comprehensive Income | ||
Other net changes | 7 | 1 |
Other [Member] | ||
Accumulated Other Comprehensive Income | ||
Other net changes | $ (2) | |
Adoption of New Accounting Standards [Member] | ASU 2018-02 [Member] | ||
Accumulated Other Comprehensive Income | ||
Other net changes | $ (33) |
Taxes on Income (Details)
Taxes on Income (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Effective tax rate | 21.90% | 33.10% | ||
One-time non-cash charge to taxes on income | $ 46 | |||
ASU 2018-02 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Retained earnings | $ 33 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | |||
Earnings Per Share [Abstract] | ||||
Net income | $ 783 | $ 564 | [1] | |
Preferred stock dividends and other | [2] | (37) | (39) | |
Net Income Available to Common Stockholders | $ 746 | $ 525 | ||
Weighted-average common shares outstanding — basic (shares) | 1,347 | 1,336 | ||
Common stock equivalent shares related to stock incentive plans (shares) | 15 | 15 | ||
Weighted-average common shares outstanding — diluted (shares) | [3] | 1,362 | 1,351 | |
Basic EPS (USD per share) | $ 0.55 | $ 0.39 | ||
Diluted EPS (USD per share) | $ 0.55 | $ 0.39 | ||
Antidilutive stock options and restricted stock awards excluded from the calculation of diluted EPS (in shares) | 11 | 10 | ||
[1] | Adjusted for the retrospective adoption of ASU 2016-18. See Note 2. | |||
[2] | Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested restricted stock units. | |||
[3] | Antidilutive stock options and restricted stock units excluded from the calculation of diluted EPS totaled 11 million and 10 million shares for the first quarters of 2018 and 2017, respectively. |
Regulatory Requirements (Regula
Regulatory Requirements (Regulatory Capital and Ratios) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
CSC [Member] | ||
Common Equity Tier 1 Risk-Based Capital | ||
Actual Amount | $ 15,535 | $ 14,630 |
Actual Ratio | 19.80% | 19.30% |
Minimum Capital Requirement Amount | $ 3,537 | $ 3,414 |
Minimum Capital Requirement Ratio | 4.50% | 4.50% |
Tier 1 Risk-Based Capital | ||
Actual Amount | $ 18,328 | $ 17,423 |
Actual Ratio | 23.30% | 23.00% |
Minimum Capital Requirement Amount | $ 4,717 | $ 4,552 |
Minimum Capital Requirement Ratio | 6.00% | 6.00% |
Total Risk-Based Capital | ||
Actual Amount | $ 18,372 | $ 17,452 |
Actual Ratio | 23.40% | 23.00% |
Minimum Capital Requirement Amount | $ 6,289 | $ 6,069 |
Minimum Capital Requirement Ratio | 8.00% | 8.00% |
Tier 1 Leverage | ||
Actual Amount | $ 18,328 | $ 17,423 |
Actual Ratio | 7.50% | 7.60% |
Minimum Capital Requirement Amount | $ 9,832 | $ 9,218 |
Minimum Capital Requirement Ratio | 4.00% | 4.00% |
CSB [Member] | ||
Common Equity Tier 1 Risk-Based Capital | ||
Actual Amount | $ 14,093 | $ 13,355 |
Actual Ratio | 20.70% | 20.10% |
Minimum to be Well Capitalized Amount | $ 4,435 | $ 4,324 |
Minimum to be Well Capitalized Ratio | 6.50% | 6.50% |
Minimum Capital Requirement Amount | $ 3,070 | $ 2,993 |
Minimum Capital Requirement Ratio | 4.50% | 4.50% |
Tier 1 Risk-Based Capital | ||
Actual Amount | $ 14,093 | $ 13,355 |
Actual Ratio | 20.70% | 20.10% |
Minimum to be Well Capitalized Amount | $ 5,458 | $ 5,321 |
Minimum to be Well Capitalized Ratio | 8.00% | 8.00% |
Minimum Capital Requirement Amount | $ 4,094 | $ 3,991 |
Minimum Capital Requirement Ratio | 6.00% | 6.00% |
Total Risk-Based Capital | ||
Actual Amount | $ 14,121 | $ 13,382 |
Actual Ratio | 20.70% | 20.10% |
Minimum to be Well Capitalized Amount | $ 6,823 | $ 6,652 |
Minimum to be Well Capitalized Ratio | 10.00% | 10.00% |
Minimum Capital Requirement Amount | $ 5,458 | $ 5,321 |
Minimum Capital Requirement Ratio | 8.00% | 8.00% |
Tier 1 Leverage | ||
Actual Amount | $ 14,093 | $ 13,355 |
Actual Ratio | 7.00% | 7.10% |
Minimum to be Well Capitalized Amount | $ 10,133 | $ 9,462 |
Minimum to be Well Capitalized Ratio | 5.00% | 5.00% |
Minimum Capital Requirement Amount | $ 8,107 | $ 7,569 |
Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Regulatory Requirements (Narrat
Regulatory Requirements (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total assets | $ 248,320 | $ 243,274 |
CSSB [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total assets | $ 6,500 |
Regulatory Requirements (Net Ca
Regulatory Requirements (Net Capital and Net Capital Requirements) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Banking and Thrift [Abstract] | ||
Net Capital | $ 2,211,000 | $ 2,118,000 |
Minimum net capital required | 250 | 250 |
2% of aggregate debit balances | 459,000 | 435,000 |
Net Capital in excess of required net capital | $ 1,752,000 | $ 1,683,000 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2018segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information (Financial
Segment Information (Financial Information for Reportable Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net Revenues | ||
Net interest revenue | $ 1,263 | $ 1,000 |
Asset management and administration fees | 851 | 823 |
Trading revenue | 201 | 192 |
Other | 83 | 66 |
Total net revenues | 2,398 | 2,081 |
Expenses Excluding Interest | 1,396 | 1,238 |
Income before taxes on income | 1,002 | 843 |
Investor Services [Member] | ||
Net Revenues | ||
Net interest revenue | 957 | 753 |
Asset management and administration fees | 593 | 566 |
Trading revenue | 127 | 119 |
Other | 64 | 50 |
Total net revenues | 1,741 | 1,488 |
Expenses Excluding Interest | 1,042 | 930 |
Income before taxes on income | 699 | 558 |
Advisor Services [Member] | ||
Net Revenues | ||
Net interest revenue | 306 | 247 |
Asset management and administration fees | 258 | 257 |
Trading revenue | 74 | 73 |
Other | 19 | 16 |
Total net revenues | 657 | 593 |
Expenses Excluding Interest | 354 | 308 |
Income before taxes on income | $ 303 | $ 285 |