COVER PAGE
COVER PAGE - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-9700 | |
Entity Registrant Name | SCHWAB CHARLES CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-3025021 | |
Entity Address, Address Line One | 211 Main Street | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94105 | |
City Area Code | 415 | |
Local Phone Number | 667-7000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,282,287,840 | |
Entity Central Index Key | 0000316709 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Common Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock – $.01 par value per share | |
Trading Symbol | SCHW | |
Security Exchange Name | NYSE | |
Series C Preferred Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/40th ownership interest in a share of 6.00% Non-Cumulative Preferred Stock, Series C | |
Trading Symbol | SCHW PrC | |
Security Exchange Name | NYSE | |
Series D Preferred Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/40th ownership interest in a share of 5.95% Non-Cumulative Preferred Stock, Series D | |
Trading Symbol | SCHW PrD | |
Security Exchange Name | NYSE |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Net Revenues | |||||
Interest revenue | $ 1,892 | $ 1,755 | $ 5,817 | $ 4,766 | |
Interest expense | (261) | (228) | (896) | (569) | |
Net interest revenue | 1,631 | 1,527 | 4,921 | 4,197 | |
Other | 83 | 67 | 297 | 235 | |
Total net revenues | 2,711 | 2,579 | 8,115 | 7,463 | |
Expenses Excluding Interest | |||||
Compensation and benefits | 857 | 737 | 2,514 | 2,252 | |
Professional services | 168 | 164 | 516 | 476 | |
Occupancy and equipment | 144 | 124 | 408 | 368 | |
Advertising and market development | 71 | 70 | 217 | 220 | |
Communications | 63 | 59 | 187 | 179 | |
Depreciation and amortization | 88 | 78 | 255 | 226 | |
Regulatory fees and assessments | 30 | 57 | 92 | 158 | |
Other | 54 | 71 | 190 | 232 | |
Total expenses excluding interest | 1,475 | 1,360 | 4,379 | 4,111 | |
Income before taxes on income | 1,236 | 1,219 | 3,736 | 3,352 | |
Taxes on income | 285 | 296 | 884 | 780 | |
Net Income | 951 | 923 | 2,852 | 2,572 | |
Preferred stock dividends and other | [1] | 38 | 38 | 127 | 128 |
Net Income Available to Common Stockholders | $ 913 | $ 885 | $ 2,725 | $ 2,444 | |
Weighted-Average Common Shares Outstanding: | |||||
Basic (shares) | 1,300 | 1,351 | 1,320 | 1,349 | |
Diluted (shares) | [2] | 1,308 | 1,364 | 1,329 | 1,363 |
Earnings Per Common Shares Outstanding: | |||||
Basic (USD per share) | $ 0.70 | $ 0.66 | $ 2.06 | $ 1.81 | |
Diluted (USD per share) | [2] | $ 0.70 | $ 0.65 | $ 2.05 | $ 1.79 |
Antidilutive stock options and restricted stock awards excluded from the calculation of diluted EPS (in shares) | 17 | 11 | 18 | 12 | |
Asset management and administration fees [Member] | |||||
Net Revenues | |||||
Asset management and administration fees and Trading revenue | $ 825 | $ 809 | $ 2,366 | $ 2,474 | |
Trading revenue [Member] | |||||
Net Revenues | |||||
Asset management and administration fees and Trading revenue | $ 172 | $ 176 | $ 531 | $ 557 | |
[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 17 million and 11 million shares for the third quarters of 2019 and 2018 , respectively, and 18 million and 12 million shares for the first nine months of 2019 and 2018 , respectively. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 951 | $ 923 | $ 2,852 | $ 2,572 |
Change in net unrealized gain (loss) on available for sale securities: | ||||
Net unrealized gain (loss) | 51 | (43) | 496 | (184) |
Other reclassifications included in other revenue | (1) | 0 | (5) | 0 |
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale | 10 | 8 | 30 | 26 |
Other comprehensive income (loss), before tax | 60 | (35) | 521 | (158) |
Income tax effect | (15) | 9 | (125) | 39 |
Other comprehensive income (loss), net of tax | 45 | (26) | 396 | (119) |
Comprehensive Income | $ 996 | $ 897 | $ 3,248 | $ 2,453 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | |
Assets | |||
Cash and cash equivalents | $ 20,252 | [1] | $ 27,938 |
Cash and investments segregated and on deposit for regulatory purposes (including resale agreements of $9,707 at September 30, 2019 and $7,195 at December 31, 2018) | 16,164 | 13,563 | |
Receivables from brokers, dealers, and clearing organizations | 1,317 | 553 | |
Receivables from brokerage clients — net | 21,069 | 21,651 | |
Other securities owned — at fair value | 497 | 539 | |
Available for sale securities | 56,483 | 66,578 | |
Held to maturity securities | 140,194 | 144,009 | |
Bank loans — net | 16,895 | 16,609 | |
Equipment, office facilities, and property — net | 2,017 | 1,769 | |
Goodwill | 1,227 | 1,227 | |
Other assets | 2,872 | 2,046 | |
Total assets | 278,987 | 296,482 | |
Liabilities and Stockholders’ Equity | |||
Bank deposits | 209,327 | 231,423 | |
Payables to brokers, dealers, and clearing organizations | 1,736 | 1,831 | |
Payables to brokerage clients | 35,622 | 32,726 | |
Accrued expenses and other liabilities | 3,521 | 2,954 | |
Long-term debt | 7,427 | 6,878 | |
Total liabilities | 257,633 | 275,812 | |
Stockholders’ equity: | |||
Preferred stock — $.01 par value per share; aggregate liquidation preference of $2,850 | 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 | 4,640 | 4,499 | |
Retained earnings | 19,374 | 17,329 | |
Treasury stock, at cost — 198,611,926 shares at September 30, 2019 and 155,116,695 shares at December 31, 2018 | (5,612) | (3,714) | |
Accumulated other comprehensive income (loss) | 144 | (252) | |
Total stockholders’ equity | 21,354 | 20,670 | |
Total liabilities and stockholders’ equity | $ 278,987 | $ 296,482 | |
[1] | For more information on the nature of restrictions on restricted cash and cash equivalents, see Note 15. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Cash and investments segregated and on deposit for regulatory purposes, resale agreements | $ 9,707 | $ 7,195 |
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) | 198,611,926 | 155,116,695 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - 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] |
Increase (Decrease) in Stockholders' Equity | |||||||
Adoption of accounting standards | $ 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 | 2,572 | 2,572 | |||||
Other comprehensive income (loss), net of tax | (119) | (119) | |||||
Dividends declared on preferred stock | (117) | (117) | |||||
Dividends declared on common stock | (448) | (448) | |||||
Stock option exercises and other | 108 | (8) | 116 | ||||
Share-based compensation | 106 | 106 | |||||
Other | 40 | 33 | 7 | ||||
Ending balance (shares) at Sep. 30, 2018 | 1,488 | ||||||
Ending balance at Sep. 30, 2018 | 20,834 | 2,793 | $ 15 | 4,484 | 16,615 | (2,769) | (304) |
Beginning balance at Jun. 30, 2018 | 20,097 | 2,793 | $ 15 | 4,447 | 15,903 | (2,783) | (278) |
Beginning balance (shares) at Jun. 30, 2018 | 1,488 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 923 | 923 | |||||
Other comprehensive income (loss), net of tax | (26) | (26) | |||||
Dividends declared on preferred stock | (34) | (34) | |||||
Dividends declared on common stock | (177) | (177) | |||||
Stock option exercises and other | 9 | 0 | 9 | ||||
Share-based compensation | 28 | 28 | |||||
Other | 14 | 9 | 5 | ||||
Ending balance (shares) at Sep. 30, 2018 | 1,488 | ||||||
Ending balance at Sep. 30, 2018 | 20,834 | 2,793 | $ 15 | 4,484 | 16,615 | (2,769) | (304) |
Beginning balance at Dec. 31, 2018 | 20,670 | 2,793 | $ 15 | 4,499 | 17,329 | (3,714) | (252) |
Beginning balance (shares) at Dec. 31, 2018 | 1,488 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 2,852 | 2,852 | |||||
Other comprehensive income (loss), net of tax | 396 | 396 | |||||
Dividends declared on preferred stock | (115) | (115) | |||||
Dividends declared on common stock | (679) | (679) | |||||
Repurchase of common stock | (1,991) | (1,991) | |||||
Stock option exercises and other | 65 | (15) | 80 | ||||
Share-based compensation | 121 | 121 | |||||
Other | 35 | 35 | (13) | 13 | |||
Ending balance (shares) at Sep. 30, 2019 | 1,488 | ||||||
Ending balance at Sep. 30, 2019 | 21,354 | 2,793 | $ 15 | 4,640 | 19,374 | (5,612) | 144 |
Beginning balance at Jun. 30, 2019 | 21,320 | 2,793 | $ 15 | 4,599 | 18,680 | (4,866) | 99 |
Beginning balance (shares) at Jun. 30, 2019 | 1,488 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 951 | 951 | |||||
Other comprehensive income (loss), net of tax | 45 | 45 | |||||
Dividends declared on preferred stock | (34) | (34) | |||||
Dividends declared on common stock | (223) | (223) | |||||
Repurchase of common stock | (771) | (771) | |||||
Stock option exercises and other | 17 | (2) | 19 | ||||
Share-based compensation | 33 | 33 | |||||
Other | 16 | 10 | 0 | 6 | |||
Ending balance (shares) at Sep. 30, 2019 | 1,488 | ||||||
Ending balance at Sep. 30, 2019 | $ 21,354 | $ 2,793 | $ 15 | $ 4,640 | $ 19,374 | $ (5,612) | $ 144 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared on common stock (USD per share) | $ 0.17 | $ 0.13 | $ 0.51 | $ 0.33 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | ||
Cash Flows from Operating Activities | |||
Net income | $ 2,852 | $ 2,572 | |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||
Share-based compensation | 131 | 113 | |
Depreciation and amortization | 255 | 226 | |
Premium amortization, net, on available for sale and held to maturity securities | 282 | 276 | |
Other | 127 | 108 | |
Net change in: | |||
Investments segregated and on deposit for regulatory purposes | (858) | 6,973 | |
Receivables from brokers, dealers, and clearing organizations | (756) | (147) | |
Receivables from brokerage clients | 576 | (1,858) | |
Other securities owned | 42 | 39 | |
Other assets | (28) | (143) | |
Payables to brokers, dealers, and clearing organizations | (95) | 43 | |
Payables to brokerage clients | 2,896 | (3,392) | |
Accrued expenses and other liabilities | (403) | (155) | |
Net cash provided by (used for) operating activities | 5,021 | 4,655 | |
Cash Flows from Investing Activities | |||
Purchases of available for sale securities | (20,744) | (19,781) | |
Proceeds from sales of available for sale securities | 21,710 | 115 | |
Principal payments on available for sale securities | 18,374 | 12,091 | |
Purchases of held to maturity securities | (18,861) | (30,639) | |
Principal payments on held to maturity securities | 13,653 | 12,382 | |
Net change in bank loans | (338) | (86) | |
Purchases of equipment, office facilities, and property | (515) | (400) | |
Purchases of Federal Home Loan Bank stock | (2) | (156) | |
Proceeds from sales of Federal Home Loan Bank stock | 0 | 528 | |
Other investing activities | (18) | (74) | |
Net cash provided by (used for) investing activities | 13,259 | (26,020) | |
Cash Flows from Financing Activities | |||
Net change in bank deposits | [1] | (22,096) | 43,752 |
Net change in short-term borrowings | 0 | (15,000) | |
Issuance of long-term debt | 593 | 1,936 | |
Repayment of long-term debt | 0 | (906) | |
Dividends paid | (808) | (579) | |
Proceeds from stock options exercised | 65 | 108 | |
Repurchases of common stock | (1,964) | 0 | |
Other financing activities | (13) | (12) | |
Net cash provided by (used for) financing activities | (24,223) | 29,299 | |
Increase (Decrease) in Cash and Cash Equivalents, including Amounts Restricted | (5,943) | 7,934 | |
Cash and Cash Equivalents, including Amounts Restricted at Beginning of Year | 38,227 | 19,160 | |
Cash and Cash Equivalents, including Amounts Restricted at End of Period | [2] | 32,284 | 27,094 |
Non-cash investing activity: | |||
Securities purchased during the period but settled after period end | 0 | 221 | |
Non-cash financing activity: | |||
Extinguishment of finance lease obligation through an assignment agreement | 52 | 0 | |
Common stock repurchased during the period but settled after period end | 27 | 0 | |
Cash paid during the period for: | |||
Interest | 922 | 550 | |
Income taxes | 907 | 649 | |
Amounts included in the measurement of lease liabilities | [3] | 99 | |
Leased assets obtained in exchange for new operating lease liabilities | [3] | 87 | |
Transfers from other sweep features to bank sweep | $ 10,300 | $ 67,800 | |
[1] | Includes transfers from other sweep features to bank sweep of $10.3 billion and $ 67.8 billion for the nine months ended September 30, 2019 and 2018, respectively. | ||
[2] | For more information on the nature of restrictions on restricted cash and cash equivalents, see Note 15. | ||
[3] | These amounts are presented beginning in 2019 as part of the adoption of ASU 2016-02. See Notes 2 and 9 for additional information related to this adoption. |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2019 | Sep. 30, 2018 | |
Reconciliation of cash, cash equivalents and amounts reported within the balance sheet | |||
Cash and cash equivalents | [1] | $ 20,252 | $ 21,830 |
Restricted cash and cash equivalents amounts included in cash and investments segregated and on deposit for regulatory purposes | [1] | 12,032 | 5,264 |
Total cash and cash equivalents, including amounts restricted shown in the statement of cash flows | [1] | $ 32,284 | $ 27,094 |
[1] | For more information on the nature of restrictions on restricted cash and cash equivalents, see Note 15. |
Introduction and Basis of Prese
Introduction and Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
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 and engages, 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 for 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 2018 Form 10-K. The significant accounting policies are included in Note 2 in the 2018 Form 10-K. There have been no significant changes to these accounting policies during the first nine months of 2019 , except as described in Note 2 below. |
New Accounting Standards
New Accounting Standards | 9 Months Ended |
Sep. 30, 2019 | |
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) 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 (ROU) 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. Adoption provides for modified retrospective transition as of the beginning of the earliest comparative period presented in the financial statements in which the entity first applies the new standard or, optionally, through another transition method by which a cumulative-effect adjustment is recorded to retained earnings as of the beginning of the period of adoption. Certain transition relief is permitted if elected by the entity. January 1, 2019 The Company adopted the new lease accounting guidance as of January 1, 2019 under the optional transition method provided electing not to recast its comparative periods. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. The adoption resulted in a gross up of the consolidated balance sheet due to recognition of ROU assets and lease liabilities primarily related to the CS&Co leases of office space and branches. The amounts were based on the present value of our remaining operating lease payments. The Company’s ROU assets and related lease liabilities upon adoption were $596 million and $662 million, respectively. Further details on the impact of adoption are included below in this Note as well as in Note 9. 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. Adoption requires modified retrospective transition as of the beginning of the period of adoption through a cumulative-effect adjustment to retained earnings. January 1, 2019 The Company adopted this guidance as of January 1, 2019 using the modified retrospective method. Adoption resulted in an immaterial cumulative-effect adjustment to retained earnings as of the date of adoption. ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” This ASU amends hedge accounting guidance to better align hedge accounting with risk management activities, while reducing the complexity of applying and reporting on hedge accounting. In addition, for a closed pool of prepayable financial assets, entities will be able to hedge an amount that is not expected to be affected by prepayments, defaults and other events under the “last-of-layer” method. The guidance also permits a one-time reclassification of debt securities eligible to be hedged under the “last-of-layer” method from held to maturity (HTM) to available for sale (AFS) upon adoption. January 1, 2019 The Company adopted this ASU on January 1, 2019. As part of its adoption, the Company made a one-time election to reclassify a portion of its HTM securities eligible to be hedged under the “last-of-layer” method to AFS. As of January 1, 2019, the securities reclassified had a fair value of $8.8 billion and resulted in a net of tax increase to AOCI of $19 million. The adoption of this standard had no other impact on the Company’s financial statements. New Accounting Standards Not Yet Adopted 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 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 other-than-temporary impairment (OTTI) model for AFS debt securities by requiring the use of an allowance, rather than directly reducing the carrying value of the security, and eliminating consideration of the length of time such security has been in an unrealized loss position as a factor in concluding whether a credit loss exists. January 1, 2020 (early adoption permitted) The Company expects that its allowance for credit losses will increase when CECL is adopted, primarily due to an incremental allowance that will be recorded on its HTM corporate debt securities. The incremental allowance at adoption is expected to be immaterial, but the impact of adoption will depend on, among other things, the economic environment, the proportion of securities classified as AFS versus HTM, and the size and type of loan and securities portfolios held by the Company on the date of adoption. A large portion of the securities in the Company’s portfolio will have zero expectation of credit losses based on industry views and regulatory guidance for U.S. Treasury and U.S. agency mortgage-backed securities. Further, we expect to apply the practical expedient based on continuous collateral replenishment to the Company’s pledged asset lines (PALs) and margin loans. The Company has completed the development of credit loss estimation methods for loans and the securities in its portfolio that do not have zero expectation of credit losses, including corporate debt securities and structured products. We are continuing the development of CECL policies and processes and testing and validation of credit loss estimation methods. We have also completed the first of the two planned quarterly CECL parallel runs. Standard Description Required Date of Adoption Effects on the Financial Statements or Other Significant Matters ASU 2018-15, “Intangibles–Goodwill and Other–Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)” Aligns the criteria for capitalizing implementation costs for cloud computing arrangements (CCA) that are service contracts with internal-use software that is developed or purchased and CCAs that include an internal-use software license. This guidance requires that the capitalized implementation costs be recognized over the period of the CCA service contract, subject to impairment evaluation on an ongoing basis. The guidance prescribes the balance sheet, income statement, and statement of cash flow classification of the capitalized implementation costs and related amortization expense, and requires additional quantitative and qualitative disclosures. Adoption provides for retrospective or prospective application to all implementation costs incurred after the date of adoption. January 1, 2020 (early adoption permitted) Historically, Schwab has expensed implementation costs as they are incurred for CCAs that are service contracts. Therefore, adopting this guidance will change the Company’s accounting treatment for these types of implementation costs. The Company plans to adopt this guidance on a prospective basis and continues to evaluate the impacts of this guidance on its financial statements, including EPS. The cumulative effect of the changes made to our consolidated January 1, 2019 balance sheet for the adoption of ASU 2016-02, Leases (Topic 842) were as follows: Balance at Adjustments Due to ASU 2016-02 Balance at Assets Other assets (1) $ 2,046 $ 588 $ 2,634 Liabilities Accrued expenses and other liabilities (2) $ 2,954 $ 588 $ 3,542 (1) The adoption adjustment is comprised of two parts: 1) an increase of $596 million for the recognition of the January 1, 2019 ROU asset and 2) an $8 million decrease related to prepaid rent and initial direct costs, which were reclassified to the ROU asset upon adoption of ASU 2016-02. (2) The adoption adjustment is comprised of two parts: 1) an increase of $662 million for the recognition of the January 1, 2019 lease liability and 2) a $74 million decrease related to deferred rent and lease incentives, which were reclassified to the ROU asset upon adoption of ASU 2016-02. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
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 Nine Months Ended 2019 2018 2019 2018 Net interest revenue Interest revenue $ 1,892 $ 1,755 $ 5,817 $ 4,766 Interest expense (261 ) (228 ) (896 ) (569 ) Net interest revenue 1,631 1,527 4,921 4,197 Asset management and administration fees Mutual funds, ETFs, and CTFs (1) 445 446 1,287 1,419 Advice solutions 305 294 878 859 Other (1) 75 69 201 196 Asset management and administration fees 825 809 2,366 2,474 Trading revenue Commissions 159 155 477 501 Principal transactions 13 21 54 56 Trading revenue 172 176 531 557 Other 83 67 297 235 Total net revenues $ 2,711 $ 2,579 $ 8,115 $ 7,463 (1) Beginning in the first quarter of 2019, a change was made to move CTFs from other asset management and administration fees. Prior periods have been recast to reflect this change. For a summary of revenue provided by our reportable segments, see Note 16. The recognition of revenue is not impacted by the operating segment in which revenue is generated. Contract balances Receivables from contracts with customers within the scope of Accounting Standards Codification (ASC) 606, Revenue From Contracts With Customers (ASC 606) were $338 million at September 30, 2019 and $307 million at December 31, 2018 and were recorded in other assets on the condensed consolidated balance sheets. Schwab does not have any other significant contract assets or contract liability balances as of September 30, 2019 . Unsatisfied performance obligations |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2019 | |
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: September 30, 2019 Amortized Gross Gross Fair Available for sale securities U.S. agency mortgage-backed securities $ 40,179 $ 299 $ 47 $ 40,431 U.S. Treasury securities 5,034 3 10 5,027 Asset-backed securities (1) 4,773 35 7 4,801 Corporate debt securities (2) 4,630 57 1 4,686 Certificates of deposit 1,000 4 — 1,004 Commercial paper (2,3) 520 1 — 521 Non-agency commercial mortgage-backed securities 13 — — 13 Total available for sale securities $ 56,149 $ 399 $ 65 $ 56,483 Held to maturity securities U.S. agency mortgage-backed securities $ 114,276 $ 1,974 $ 238 $ 116,012 Asset-backed securities (1) 18,323 74 38 18,359 Corporate debt securities (2) 4,659 58 2 4,715 U.S. state and municipal securities 1,306 107 — 1,413 Non-agency commercial mortgage-backed securities 1,136 28 — 1,164 U.S. Treasury securities 224 6 — 230 Certificates of deposit 200 — — 200 Foreign government agency securities 50 — — 50 Other 20 — — 20 Total held to maturity securities $ 140,194 $ 2,247 $ 278 $ 142,163 December 31, 2018 Available for sale securities U.S. agency mortgage-backed securities $ 25,594 $ 44 $ 82 $ 25,556 U.S. Treasury securities 18,410 — 108 18,302 Asset-backed securities (1) 10,086 14 15 10,085 Corporate debt securities (2) 7,477 10 20 7,467 Certificates of deposit 3,682 4 1 3,685 U.S. agency notes 900 — 2 898 Commercial paper (2,3) 522 — — 522 Foreign government agency securities 50 — 1 49 Non-agency commercial mortgage-backed securities 14 — — 14 Total available for sale securities $ 66,735 $ 72 $ 229 $ 66,578 Held to maturity securities U.S. agency mortgage-backed securities $ 118,064 $ 217 $ 2,188 $ 116,093 Asset-backed securities (1) 18,502 83 39 18,546 Corporate debt securities (2) 4,477 2 47 4,432 U.S. state and municipal securities 1,327 24 3 1,348 Non-agency commercial mortgage-backed securities 1,156 3 17 1,142 U.S. Treasury securities 223 — 6 217 Certificates of deposit 200 1 — 201 Foreign government agency securities 50 — 1 49 Other 10 — — 10 Total held to maturity securities $ 144,009 $ 330 $ 2,301 $ 142,038 (1) Approximately 43% and 36% of asset-backed securities held as of September 30, 2019 and December 31, 2018 , respectively, were Federal Family Education Loan Program Asset-Backed Securities. Asset-backed securities collateralized by credit card receivables represented approximately 42% of the asset-backed securities held as of September 30, 2019 and December 31, 2018 . (2) As of September 30, 2019 and December 31, 2018 , approximately 35% and 26% , 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 18% of the holdings of these securities were issued by institutions in the information technology industry as of September 30, 2019 and December 31, 2018 . (3) Included in cash and cash equivalents on the condensed consolidated balance sheets, but excluded from this table is $0.9 billion and $4.9 billion of AFS commercial paper as of September 30, 2019 and December 31, 2018 , respectively. These holdings have maturities of three months or less at the time of acquisition and an aggregate market value equal to amortized cost. On January 1, 2019 the Company transferred certain U.S. agency mortgage-backed securities with a fair value of $8.8 billion from the HTM category to the AFS category as permitted by ASU 2017-12. For additional information on the transfer, see Notes 2 and 14. At September 30, 2019 , our banking subsidiaries had pledged securities with a fair value of $26.8 billion as collateral to secure borrowing capacity on secured credit facilities with the FHLB (see Note 8). Certain banking subsidiaries also pledge investment securities as collateral to secure borrowing capacity at the Federal Reserve Bank discount window, and had pledged securities with a fair value of $8.3 billion as collateral for this facility at September 30, 2019 . CSB also pledges securities issued by federal agencies to secure certain trust deposits. The fair value of these pledged securities was $918 million at September 30, 2019 . 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 September 30, 2019 Fair Unrealized Fair Unrealized Fair Unrealized Available for sale securities U.S. agency mortgage-backed securities $ 12,063 $ 24 $ 6,317 $ 23 $ 18,380 $ 47 U.S. Treasury securities 377 — 3,161 10 3,538 10 Asset-backed securities 763 1 398 6 1,161 7 Corporate debt securities 149 1 499 — 648 1 Total $ 13,352 $ 26 $ 10,375 $ 39 $ 23,727 $ 65 Held to maturity securities U.S. agency mortgage-backed securities $ 11,838 $ 37 $ 20,897 $ 201 $ 32,735 $ 238 Asset-backed securities 7,638 34 556 4 8,194 38 Corporate debt securities 416 1 354 1 770 2 Total $ 19,892 $ 72 $ 21,807 $ 206 $ 41,699 $ 278 Total securities with unrealized losses (1) $ 33,244 $ 98 $ 32,182 $ 245 $ 65,426 $ 343 December 31, 2018 Available for sale securities U.S. agency mortgage-backed securities $ 9,529 $ 32 $ 4,257 $ 50 $ 13,786 $ 82 U.S. Treasury securities 4,951 6 7,037 102 11,988 108 Asset-backed securities 4,050 9 837 6 4,887 15 Corporate debt securities 3,561 19 254 1 3,815 20 Certificates of deposit 1,217 1 150 — 1,367 1 U.S. agency notes 195 — 304 2 499 2 Foreign government agency securities — — 49 1 49 1 Total $ 23,503 $ 67 $ 12,888 $ 162 $ 36,391 $ 229 Held to maturity securities U.S. agency mortgage-backed securities $ 29,263 $ 222 $ 56,435 $ 1,966 $ 85,698 $ 2,188 Asset-backed securities 6,795 35 376 4 7,171 39 Corporate debt securities 2,909 29 1,066 18 3,975 47 U.S. state and municipal securities 77 2 18 1 95 3 Non-agency commercial mortgage-backed securities 283 2 632 15 915 17 U.S. Treasury securities — — 218 6 218 6 Foreign government agency securities — — 49 1 49 1 Total $ 39,327 $ 290 $ 58,794 $ 2,011 $ 98,121 $ 2,301 Total securities with unrealized losses (2) $ 62,830 $ 357 $ 71,682 $ 2,173 $ 134,512 $ 2,530 (1) The number of investment positions with unrealized losses totaled 343 for AFS securities and 625 for HTM securities. (2) The number of investment positions with unrealized losses totaled 441 for AFS securities and 1,524 for HTM securities. At September 30, 2019 , substantially all rated securities in the investment portfolios were 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 on a quarterly basis as described in Note 2 in the 2018 Form 10-K. No amounts were recognized as OTTI in earnings or other comprehensive income during the nine months ended September 30, 2019 or the year ended December 31, 2018 . As of September 30, 2019 and December 31, 2018 , Schwab did not hold any securities on which OTTI was previously recognized. In the table below, mortgage-backed securities and other asset-backed securities have been allocated to maturity groupings based on final contractual maturities. As borrowers may have the right to call or prepay certain obligations underlying our investment securities, actual maturities may differ from the scheduled contractual maturities presented below. The maturities of AFS and HTM securities are as follows: September 30, 2019 Within After 1 year After 5 years After Total Available for sale securities U.S. agency mortgage-backed securities $ 51 $ 1,909 $ 11,061 $ 27,410 $ 40,431 U.S. Treasury securities 3,541 1,486 — — 5,027 Asset-backed securities 35 3,752 794 220 4,801 Corporate debt securities 1,100 3,415 171 — 4,686 Certificates of deposit 501 503 — — 1,004 Commercial paper 521 — — — 521 Non-agency commercial mortgage-backed securities — — — 13 13 Total fair value $ 5,749 $ 11,065 $ 12,026 $ 27,643 $ 56,483 Total amortized cost $ 5,743 $ 10,994 $ 11,996 $ 27,416 $ 56,149 Held to maturity securities U.S. agency mortgage-backed securities $ 663 $ 15,472 $ 35,048 $ 64,829 $ 116,012 Asset-backed securities — 3,227 7,940 7,192 18,359 Corporate debt securities 778 3,079 858 — 4,715 U.S. state and municipal securities — 99 452 862 1,413 Non-agency commercial mortgage-backed securities — 367 — 797 1,164 U.S. Treasury securities — — 230 — 230 Certificates of deposit 200 — — — 200 Foreign government agency securities — 50 — — 50 Other — — — 20 20 Total fair value $ 1,641 $ 22,294 $ 44,528 $ 73,700 $ 142,163 Total amortized cost $ 1,637 $ 21,989 $ 43,368 $ 73,200 $ 140,194 Proceeds and gross realized gains and losses from sales of AFS securities are as follows: Three Months Ended Nine Months Ended September 30, 2019 2018 2019 2018 Proceeds $ 5,436 $ — $ 21,710 $ 115 Gross realized gains 5 — 15 — Gross realized losses 4 — 10 — |
Bank Loans and Related Allowanc
Bank Loans and Related Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2019 | |
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: September 30, 2019 Current 30-59 days 60-89 days > 90 days past (3) Total past due Total Allowance Total First Mortgages (1,2) $ 10,607 $ 20 $ 2 $ 11 $ 33 $ 10,640 $ 10 $ 10,630 HELOCs (1,2) 1,208 3 1 8 12 1,220 4 1,216 Pledged asset lines 4,876 2 — — 2 4,878 — 4,878 Other 172 — — 2 2 174 3 171 Total bank loans $ 16,863 $ 25 $ 3 $ 21 $ 49 $ 16,912 $ 17 $ 16,895 December 31, 2018 First Mortgages (1,2) $ 10,349 $ 21 $ 2 $ 12 $ 35 $ 10,384 $ 14 $ 10,370 HELOCs (1,2) 1,493 3 1 8 12 1,505 5 1,500 Pledged asset lines 4,558 3 — — 3 4,561 — 4,561 Other 180 — — — — 180 2 178 Total bank loans $ 16,580 $ 27 $ 3 $ 20 $ 50 $ 16,630 $ 21 $ 16,609 (1) First Mortgages and HELOCs include unamortized premiums and discounts and direct origination costs of $71 million and $73 million at September 30, 2019 and December 31, 2018 , respectively. (2) At September 30, 2019 and December 31, 2018 , 46% and 47% , respectively, 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 September 30, 2019 or December 31, 2018 . At September 30, 2019 , CSB had pledged $10.8 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 both September 30, 2019 and December 31, 2018 . Changes in the allowance for loan losses were as follows: September 30, 2019 September 30, 2018 Three Months Ended First Mortgages HELOCs Other Total (1) First Mortgages HELOCs Other Total (1) Balance at beginning of period $ 12 $ 5 $ 2 $ 19 $ 17 $ 7 $ 2 $ 26 Charge-offs — — — — — — — — Recoveries — — — — — 1 — 1 Provision for loan losses (2 ) (1 ) 1 (2 ) — (1 ) — (1 ) Balance at end of period $ 10 $ 4 $ 3 $ 17 $ 17 $ 7 $ 2 $ 26 September 30, 2019 September 30, 2018 Nine Months Ended First Mortgages HELOCs Other Total (1) First Mortgages HELOCs Other Total (1) Balance at beginning of period $ 14 $ 5 $ 2 $ 21 $ 16 $ 8 $ 2 $ 26 Charge-offs — — — — — — (1 ) (1 ) Recoveries 1 1 — 2 — 2 — 2 Provision for loan losses (5 ) (2 ) 1 (6 ) 1 (3 ) 1 (1 ) Balance at end of period $ 10 $ 4 $ 3 $ 17 $ 17 $ 7 $ 2 $ 26 (1) All PALs were fully collateralized by securities with fair values in excess of borrowings as of each period presented. A summary of impaired bank loan-related assets is as follows: September 30, 2019 December 31, 2018 Nonaccrual loans (1) $ 21 $ 21 Other real estate owned (2) 2 3 Total nonperforming assets 23 24 Troubled debt restructurings 2 4 Total impaired assets $ 25 $ 28 (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 updated quarterly. 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 updated on a monthly basis by reference to a home price appreciation index. The credit quality indicators of the Company’s bank loan portfolio are detailed below: September 30, 2019 Balance Weighted Average Percent of First Mortgages Estimated Current LTV < 70% $ 9,574 776 0.03 % >70% – < 90% 1,061 770 0.28 % >90% – < 100% 4 756 — >100% 1 768 — Total $ 10,640 776 0.05 % HELOCs Estimated Current LTV (1) < 70% $ 1,157 769 0.25 % >70% – < 90% 58 751 0.83 % >90% – < 100% 3 716 5.06 % >100% 2 659 — Total $ 1,220 768 0.29 % Pledged asset lines Weighted-Average LTV (1) =70% $ 4,878 767 — December 31, 2018 Balance Weighted Average Percent of First Mortgages Estimated Current LTV < 70% $ 9,396 776 0.04 % >70% – < 90% 985 769 0.41 % >90% – < 100% 2 717 — >100% 1 753 — Total $ 10,384 775 0.07 % HELOCs Estimated Current LTV (1) < 70% $ 1,416 770 0.13 % >70% – < 90% 80 752 0.60 % >90% – < 100% 6 729 3.36 % >100% 3 702 — Total $ 1,505 769 0.17 % Pledged asset lines Weighted-Average LTV (1) =70% $ 4,561 766 — (1) Represents the LTV for the full line of credit (drawn and undrawn). September 30, 2019 First Mortgages HELOCs Year of origination Pre-2015 $ 1,815 $ 872 2015 889 85 2016 2,382 82 2017 2,137 90 2018 1,611 67 2019 1,806 24 Total $ 10,640 $ 1,220 Origination FICO <620 $ 4 $ — 620 – 679 76 6 680 – 739 1,624 236 > 740 8,936 978 Total $ 10,640 $ 1,220 Origination LTV < 70% $ 7,980 $ 869 >70% – < 90% 2,656 346 >90% – < 100% 4 5 Total $ 10,640 $ 1,220 December 31, 2018 First Mortgages HELOCs Year of origination Pre-2015 $ 2,387 $ 1,140 2015 1,050 106 2016 2,606 95 2017 2,366 99 2018 1,975 65 Total $ 10,384 $ 1,505 Origination FICO <620 $ 5 $ — 620 – 679 83 8 680 – 739 1,626 282 > 740 8,670 1,215 Total $ 10,384 $ 1,505 Origination LTV < 70% $ 7,815 $ 1,064 >70% – < 90% 2,564 434 >90% – < 100% 5 7 Total $ 10,384 $ 1,505 At September 30, 2019 , First Mortgage loans of $9.6 billion had adjustable interest rates. Substantially all of these mortgages have initial fixed interest rates for three to ten years and interest rates that adjust annually thereafter. Approximately 29% of the balance of these mortgages consisted of loans with interest-only payment terms. The interest rates on approximately 65% 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. The following table presents when current outstanding HELOCs will convert to amortizing loans: September 30, 2019 Balance Converted to an amortizing loan by period end $ 551 Within 1 year 52 > 1 year – 3 years 84 > 3 years – 5 years 170 > 5 years 363 Total $ 1,220 At September 30, 2019 , $1.0 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 September 30, 2019 , the borrowers on approximately 54% of HELOC loan balances outstanding only paid the minimum amount due. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2019 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities As of September 30, 2019 and December 31, 2018 , all of Schwab’s involvement with variable interest entities (VIEs) is through CSB’s Community Reinvestment Act (CRA)-related investments and most of those are related to Low-Income Housing Tax Credit (LIHTC) investments. As part of CSB’s community reinvestment initiatives, CSB invests in funds that make equity investments in multifamily affordable housing properties. CSB receives tax credits and other tax benefits for these investments. 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 is not the primary beneficiary, are summarized in the table below: September 30, 2019 December 31, 2018 Aggregate Aggregate Maximum Aggregate Aggregate Maximum LIHTC investments (1) $ 498 $ 298 $ 498 $ 338 $ 188 $ 338 Other CRA investments (2) 91 — 125 70 — 124 Total $ 589 $ 298 $ 623 $ 408 $ 188 $ 462 (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 HTM securities, bank loans – net, or other assets on the condensed consolidated balance sheets. Schwab’s maximum exposure to loss would result from the loss of the investments, including any committed amounts. 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 2019 and 2022 . During the nine months ended September 30, 2019 and year ended December 31, 2018 |
Bank Deposits
Bank Deposits | 9 Months Ended |
Sep. 30, 2019 | |
Banking and Thrift [Abstract] | |
Bank Deposits | Bank Deposits Bank deposits consist of interest-bearing and non-interest-bearing deposits as follows: September 30, 2019 December 31, 2018 Interest-bearing deposits: Deposits swept from brokerage accounts $ 191,456 $ 212,311 Checking 12,020 12,523 Savings and other 5,146 5,827 Total interest-bearing deposits 208,622 230,661 Non-interest-bearing deposits 705 762 Total bank deposits $ 209,327 $ 231,423 |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings CSC’s Senior Notes are unsecured obligations. 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 fixed-rate Senior Notes and quarterly for the floating-rate Senior Notes. The following table lists long-term debt by instrument outstanding as of September 30, 2019 and December 31, 2018 : Date of Principal Amount Outstanding Issuance September 30, 2019 December 31, 2018 Fixed-rate Senior Notes: 4.450% due July 22, 2020 07/22/10 $ 700 $ 700 3.250% due May 21, 2021 05/22/18 600 600 3.225% due September 1, 2022 08/29/12 256 256 2.650% due January 25, 2023 12/07/17 800 800 3.550% due February 1, 2024 10/31/18 500 500 3.000% due March 10, 2025 03/10/15 375 375 3.850% due May 21, 2025 05/22/18 750 750 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 4.000% due February 1, 2029 10/31/18 600 600 3.250% due May 22, 2029 05/22/19 600 — Floating-rate Senior Notes: Three-month LIBOR + 0.32% due May 21, 2021 05/22/18 600 600 Total Senior Notes 7,481 6,881 5.450% Finance lease obligation (1) 06/04/04 — 52 Unamortized discount — net (14 ) (15 ) Debt issuance costs (40 ) (40 ) Total long-term debt $ 7,427 $ 6,878 (1) The finance lease obligation was extinguished through an assignment agreement during the first quarter of 2019. Annual maturities on long-term debt outstanding at September 30, 2019 are as follows: Maturities 2019 $ — 2020 700 2021 1,200 2022 256 2023 800 Thereafter 4,525 Total maturities 7,481 Unamortized discount — net (14 ) Debt issuance costs (40 ) Total long-term debt $ 7,427 Short-term borrowings: Our banking subsidiaries maintain secured credit facilities with the FHLB. Amounts available under these facilities are dependent on the amount of our First Mortgages, HELOCs, and the fair value of certain of their investment securities that are pledged as collateral. As of September 30, 2019 and December 31, 2018 , the collateral pledged provided a total borrowing capacity of $35.2 billion and $35.5 billion , respectively, of which no amounts were outstanding at the end of either period. As a condition of the FHLB borrowings, we are required to hold FHLB stock, which was recorded in other assets on the condensed consolidated balance sheets. The investment in FHLB was $34 million at September 30, 2019 and $32 million at December 31, 2018 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases for corporate offices, branch locations, and server equipment and determines if an arrangement is a lease at inception. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The lease liability may include payments that depend on a rate or index (such as the Consumer Price Index), measured using the rate or index at the commencement date. Payments that vary because of changes in facts or circumstances occurring after the commencement date are considered variable. These payments are not recognized as part of the lease liability and are expensed in the period incurred. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. We have lease agreements with lease and non-lease components. For the majority of our leases (real estate leases), the Company has elected the practical expedient to account for the lease and non-lease components as a single lease component. We have not elected the practical expedient for equipment leases and account for lease and non-lease components separately for those classes of leases. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Our lease terms may include periods covered by options to extend when it is reasonably certain that we will exercise those options. The lease terms may also include periods covered by options to terminate when it is reasonably certain that we will not exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. The Company does not have any finance leases and had an immaterial amount of sublease income for all periods presented. The following table details the amounts and locations of lease assets and liabilities on the condensed consolidated balance sheet: Leases Balance Sheet Classification September 30, 2019 Assets Operating lease assets Other assets $ 596 Liabilities Operating lease liabilities Accrued expenses and other liabilities $ 665 The components of lease expense are as follows: Lease Cost Three Months Ended Nine Months Ended Operating lease cost (1) $ 34 $ 100 Variable lease cost (2) 8 25 (1) Includes short-term leases, which are immaterial. (2) Includes payments that are entirely variable and amounts that represent the difference between payments based on an index or rate that would be reflected in the lease liability and what is actually incurred. The following tables present supplemental lease information as of September 30, 2019 : Lease Term and Discount Rate Weighted-average remaining lease term (years) 7.18 Weighted-average discount rate 3.47 % Maturity of Lease Liabilities Operating Leases (1) 2019 $ 26 2020 136 2021 113 2022 92 2023 84 Thereafter 309 Total lease payments 760 Less: Interest 95 Present value of lease liabilities $ 665 (1) Operating lease payments exclude $41 million of legally binding minimum lease payments for leases signed but not yet commenced. These leases will commence between 2019 and 2020 with lease terms of five years to 20 years. In accordance with the disclosure requirements for our adoption of ASU 2016-02, the Company is presenting the operating leases commitment table as of December 31, 2018. The following table is unchanged from the disclosure in Note 14 in the 2018 Form 10-K: Operating Subleases Net 2019 $ 131 $ 4 $ 127 2020 125 4 121 2021 101 4 97 2022 79 2 77 2023 72 1 71 Thereafter 282 — 282 Total $ 790 $ 15 $ 775 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
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 $842 million and $491 million during the third quarters of 2019 and 2018 , respectively, and $2.0 billion and $1.6 billion during the first nine months of 2019 and 2018 , respectively. CSB purchased HELOCs with commitments of $52 million and $104 million during the third quarters of 2019 and 2018 , respectively, and $180 million and $311 million during the first nine months of 2019 and 2018 , respectively. The Company’s commitments to extend credit on bank lines of credit and to purchase First Mortgages are as follows: September 30, 2019 December 31, 2018 Commitments to extend credit related to unused HELOCs, PALs, and other lines of credit $ 11,234 $ 11,046 Commitments to purchase First Mortgage loans 1,976 268 Total $ 13,210 $ 11,314 In the third quarter of 2019, volume in new and refinanced First Mortgages increased as a result of lower interest rates and enhancements to customer incentives, leading to additional purchases during the third quarter and an increase in commitments to purchase First Mortgages as of September 30, 2019. 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 September 30, 2019 , the aggregate face amount of these LOCs totaled $225 million . There were no funds drawn under any of these LOCs at September 30, 2019 . 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. Acquisition of USAA-IMCO: On July 25, 2019, the Company announced a definitive agreement to acquire assets of USAA-IMCO, including over one million brokerage and managed portfolio accounts with approximately $90 billion in client assets, for $1.8 billion in cash. The companies have also agreed to enter into a long-term referral agreement, effective at closing of the acquisition, that would make Schwab the exclusive wealth management and brokerage provider for USAA members. The transaction is expected to close in mid-2020, subject to satisfaction of closing conditions, including regulatory approvals and the implementation of conversion plans. 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; and potential opportunities for settlement and the status of any settlement discussions. 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 is a certain matter 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. 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 are vigorously contesting the lawsuit. |
Financial Instruments Subject t
Financial Instruments Subject to Off-Balance Sheet Credit Risk | 9 Months Ended |
Sep. 30, 2019 | |
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, we would be required to deposit cash and/or securities of an equal amount into our segregated reserve bank accounts in order to meet our 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 $860 million and $99 million at September 30, 2019 and December 31, 2018 , respectively. Substantially 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 September 30, 2019 and December 31, 2018 : Gross Gross Amounts Net Amounts Gross Amounts Not Offset in the Net Counterparty Collateral September 30, 2019 Assets Resale agreements (1) $ 9,707 $ — $ 9,707 $ — $ (9,707 ) (2) $ — Securities borrowed (3) 877 — 877 (871 ) (6 ) — Total $ 10,584 $ — $ 10,584 $ (871 ) $ (9,713 ) $ — Liabilities Securities loaned (4,5) $ 1,471 $ — $ 1,471 $ (871 ) $ (489 ) $ 111 Total $ 1,471 $ — $ 1,471 $ (871 ) $ (489 ) $ 111 December 31, 2018 Assets Resale agreements (1) $ 7,195 $ — $ 7,195 $ — $ (7,195 ) (2) $ — Securities borrowed (3) 101 — 101 (98 ) (3 ) — Total $ 7,296 $ — $ 7,296 $ (98 ) $ (7,198 ) $ — Liabilities Securities loaned (4,5) $ 1,184 $ — $ 1,184 $ (98 ) $ (975 ) $ 111 Total $ 1,184 $ — $ 1,184 $ (98 ) $ (975 ) $ 111 (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 September 30, 2019 and December 31, 2018 , the fair value of collateral received in connection with resale agreements that are available to be repledged or sold was $9.9 billion and $7.4 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 September 30, 2019 and December 31, 2018 . (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 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: September 30, 2019 December 31, 2018 Fair value of client securities available to be pledged $ 26,614 $ 26,628 Fair value of client securities pledged for: Fulfillment of requirements with the Options Clearing Corporation (1) 1,778 2,315 Fulfillment of client short sales 2,023 1,292 Securities lending to other broker-dealers 1,204 974 Total collateral pledged $ 5,005 $ 4,581 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 $139 million as of September 30, 2019 and $97 million as of December 31, 2018 . (1) |
Fair Values of Assets and Liabi
Fair Values of Assets and Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
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 three independent third-party 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 services 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 material differences in the amounts recorded. For a description of the fair value hierarchy and Schwab’s fair value methodologies, see Note 2 in the 2018 Form 10-K. We did not transfer any assets or liabilities between Level 1, Level 2, or Level 3 during the nine months ended September 30, 2019 , or the year ended December 31, 2018 . In addition, the Company did not adjust prices received from the primary independent third-party pricing service at September 30, 2019 or December 31, 2018 . 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: September 30, 2019 Level 1 Level 2 Level 3 Balance at Cash equivalents: Money market funds $ 4,193 $ — $ — $ 4,193 Commercial paper — 923 — 923 Total cash equivalents 4,193 923 — 5,116 Investments segregated and on deposit for regulatory purposes: Certificates of deposit — 1,951 — 1,951 U.S. Government securities — 1,605 — 1,605 Total investments segregated and on deposit for regulatory purposes — 3,556 — 3,556 Other securities owned: Equity and bond mutual funds 378 — — 378 State and municipal debt obligations — 32 — 32 Equity, U.S. Government and corporate debt, and other securities 3 74 — 77 Schwab Funds ® money market funds 10 — — 10 Total other securities owned 391 106 — 497 Available for sale securities: U.S. agency mortgage-backed securities — 40,431 — 40,431 U.S. Treasury securities — 5,027 — 5,027 Asset-backed securities — 4,801 — 4,801 Corporate debt securities — 4,686 — 4,686 Certificates of deposit — 1,004 — 1,004 Commercial paper — 521 — 521 Non-agency commercial mortgage-backed securities — 13 — 13 Total available for sale securities — 56,483 — 56,483 Total $ 4,584 $ 61,068 $ — $ 65,652 December 31, 2018 Level 1 Level 2 Level 3 Balance at Cash equivalents: Money market funds $ 3,429 $ — $ — $ 3,429 Commercial paper — 4,863 — 4,863 Total cash equivalents 3,429 4,863 — 8,292 Investments segregated and on deposit for regulatory purposes: Certificates of deposit — 1,396 — 1,396 U.S. Government securities — 3,275 — 3,275 Total investments segregated and on deposit for regulatory purposes — 4,671 — 4,671 Other securities owned: Equity and bond mutual funds 441 — — 441 State and municipal debt obligations — 39 — 39 Equity, U.S. Government and corporate debt, and other securities 3 30 — 33 Schwab Funds ® money market funds 26 — — 26 Total other securities owned 470 69 — 539 Available for sale securities: U.S. agency mortgage-backed securities — 25,556 — 25,556 U.S. Treasury securities — 18,302 — 18,302 Asset-backed securities — 10,085 — 10,085 Corporate debt securities — 7,467 — 7,467 Certificates of deposit — 3,685 — 3,685 U.S. agency notes — 898 — 898 Commercial paper — 522 — 522 Foreign government agency securities — 49 — 49 Non-agency commercial mortgage-backed securities — 14 — 14 Total available for sale securities — 66,578 — 66,578 Total $ 3,899 $ 76,181 $ — $ 80,080 Fair Value of Other Financial Instruments The following tables present the fair value hierarchy for other financial instruments: September 30, 2019 Carrying Level 1 Level 2 Level 3 Balance at Assets Cash and cash equivalents $ 15,136 $ — $ 15,136 $ — $ 15,136 Cash and investments segregated and on deposit for 12,595 — 12,595 — 12,595 Receivables from brokers, dealers, and clearing 1,317 — 1,317 — 1,317 Receivables from brokerage clients — net 21,061 — 21,061 — 21,061 Held to maturity securities: U.S. agency mortgage-backed securities 114,276 — 116,012 — 116,012 Asset-backed securities 18,323 — 18,359 — 18,359 Corporate debt securities 4,659 — 4,715 — 4,715 U.S. state and municipal securities 1,306 — 1,413 — 1,413 Non-agency commercial mortgage-backed securities 1,136 — 1,164 — 1,164 U.S. Treasury securities 224 — 230 — 230 Certificates of deposit 200 — 200 — 200 Foreign government agency securities 50 — 50 — 50 Other 20 — 20 — 20 Total held to maturity securities 140,194 — 142,163 — 142,163 Bank loans — net: First Mortgages 10,630 — 10,682 — 10,682 HELOCs 1,216 — 1,255 — 1,255 Pledged asset lines 4,878 — 4,878 — 4,878 Other 171 — 171 — 171 Total bank loans — net 16,895 — 16,986 — 16,986 Other assets 617 — 617 — 617 Total $ 207,815 $ — $ 209,875 $ — $ 209,875 Liabilities Bank deposits $ 209,327 $ — $ 209,327 $ — $ 209,327 Payables to brokers, dealers, and clearing organizations 1,736 — 1,736 — 1,736 Payables to brokerage clients 35,622 — 35,622 — 35,622 Accrued expenses and other liabilities 1,252 — 1,252 — 1,252 Long-term debt 7,427 — 7,771 — 7,771 Total $ 255,364 $ — $ 255,708 $ — $ 255,708 December 31, 2018 Carrying Level 1 Level 2 Level 3 Balance at Assets Cash and cash equivalents $ 19,646 $ — $ 19,646 $ — $ 19,646 Cash and investments segregated and on deposit for 8,886 — 8,886 — 8,886 Receivables from brokers, dealers, and clearing 553 — 553 — 553 Receivables from brokerage clients — net 21,641 — 21,641 — 21,641 Held to maturity securities: U.S. agency mortgage-backed securities 118,064 — 116,093 — 116,093 Asset-backed securities 18,502 — 18,546 — 18,546 Corporate debt securities 4,477 — 4,432 — 4,432 U.S. state and municipal securities 1,327 — 1,348 — 1,348 Non-agency commercial mortgage-backed securities 1,156 — 1,142 — 1,142 U.S. Treasury securities 223 — 217 — 217 Certificates of deposit 200 — 201 — 201 Foreign government agency securities 50 — 49 — 49 Other 10 — 10 — 10 Total held to maturity securities 144,009 — 142,038 — 142,038 Bank loans — net: First Mortgages 10,370 — 10,193 — 10,193 HELOCs 1,500 — 1,583 — 1,583 Pledged asset lines 4,561 — 4,561 — 4,561 Other 178 — 178 — 178 Total bank loans — net 16,609 — 16,515 — 16,515 Other assets 460 — 460 — 460 Total $ 211,804 $ — $ 209,739 $ — $ 209,739 Liabilities Bank deposits $ 231,423 $ — $ 231,423 $ — $ 231,423 Payables to brokers, dealers, and clearing organizations 1,831 — 1,831 — 1,831 Payables to brokerage clients 32,726 — 32,726 — 32,726 Accrued expenses and other liabilities 1,370 — 1,370 — 1,370 Long-term debt 6,878 — 6,827 — 6,827 Total $ 274,228 $ — $ 274,177 $ — $ 274,177 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity On January 30, 2019, CSC publicly announced that its Board of Directors authorized a new Share Repurchase Program to repurchase up to $4.0 billion of common stock. The share repurchase authorization does not have an expiration date. During the third quarter and first nine months of 2019, CSC repurchased 20 million and 49 million shares of its common stock under this authorization for $771 million and $2.0 billion , respectively. The Company’s preferred stock issued and outstanding is as follows: Liquidation Preference Per Share Dividend Rate in Effect at September 30, 2019 Earliest Redemption Date Date at Which Dividend Rate Becomes Floating Floating Annual Rate of Three-Month LIBOR plus: Shares Issued and Outstanding (in thousands) at Carrying Value at September 30, (1) December 31, 2018 (1) September 30, 2019 December 31, 2018 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. Dividends declared on the Company’s preferred stock are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Total Per Share Total Per Share Total Per Share Total Per Share Series A $ — $ — $ — $ — $ 14 $ 35.00 $ 14 $ 35.00 Series C 9 15.00 9 15.00 27 45.00 27 45.00 Series D 11 14.88 11 14.88 33 44.64 33 44.64 Series E 14 2,312.50 14 2,312.50 28 4,625.00 28 4,625.00 Series F — — — — 13 2,500.00 15 2,930.56 Total $ 34 $ 34 $ 115 $ 117 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The components of other comprehensive income (loss) are as follows: 2019 2018 Three Months Ended September 30, Before Tax Net of Before Tax Net of Change in net unrealized gain (loss) on available for sale securities: Net unrealized gain (loss) $ 51 $ (12 ) $ 39 $ (43 ) $ 11 $ (32 ) Other reclassifications included in other revenue (1 ) — (1 ) — — — Amortization of amounts previously recorded upon transfer to held to maturity 10 (3 ) 7 8 (2 ) 6 Other comprehensive income (loss) $ 60 $ (15 ) $ 45 $ (35 ) $ 9 $ (26 ) 2019 2018 Nine Months Ended September 30, Before Tax Net of Before Tax Net of Change in net unrealized gain (loss) on available for sale securities: Net unrealized gain (loss) $ 496 $ (119 ) $ 377 $ (184 ) $ 45 $ (139 ) Other reclassifications included in other revenue (5 ) 1 (4 ) — — — Amortization of amounts previously recorded upon transfer to held to maturity 30 (7 ) 23 26 (6 ) 20 Other comprehensive income (loss) $ 521 $ (125 ) $ 396 $ (158 ) $ 39 $ (119 ) AOCI balances are as follows: Total AOCI Balance at June 30, 2018 $ (278 ) Available for sale securities: Net unrealized gain (loss) (32 ) Held to maturity securities: Amortization of amounts previously recorded upon transfer to held to maturity from available for sale 6 Balance at September 30, 2018 $ (304 ) Balance at June 30, 2019 $ 99 Available for sale securities: Net unrealized gain (loss), excluding transfers to available for sale from held to maturity 39 Other reclassifications included in other revenue (1 ) Held to maturity securities: Amortization of amounts previously recorded upon transfer to held to maturity from available for sale 7 Balance at September 30, 2019 $ 144 Total AOCI Balance at December 31, 2017 $ (152 ) Adoption of accounting standards (33 ) Available for sale securities: Net unrealized gain (loss) (139 ) Held to maturity securities: Amortization of amounts previously recorded upon transfer to held to maturity from available for sale 20 Balance at September 30, 2018 $ (304 ) Balance at December 31, 2018 $ (252 ) Available for sale securities: Net unrealized gain (loss), excluding transfers to available for sale from held to maturity 358 Net unrealized gain on securities transferred to available for sale from held to maturity (1) 19 Other reclassifications included in other revenue (4 ) Held to maturity securities: Amortization of amounts previously recorded upon transfer to held to maturity from available for sale 23 Balance at September 30, 2019 $ 144 (1) As part of the adoption of ASU 2017-12, in the first quarter of 2019, the Company made a one-time election to transfer a portion of its HTM securities to AFS. The transfer resulted in a net of tax increase to AOCI of $19 million . See Notes 2 and 4 for additional discussion on the transfer of HTM securities to AFS. |
Regulatory Requirements
Regulatory Requirements | 9 Months Ended |
Sep. 30, 2019 | |
Banking and Thrift [Abstract] | |
Regulatory Requirements | Regulatory Requirements At September 30, 2019 , CSC and CSB met all of their respective capital requirements. The regulatory capital and ratios for CSC (consolidated) and CSB are as follows: Actual (1) Minimum to be Minimum Capital Requirement September 30, 2019 Amount Ratio Amount Ratio Amount Ratio (2) CSC Common Equity Tier 1 Risk-Based Capital $ 17,264 20.0 % N/A $ 3,877 4.5 % Tier 1 Risk-Based Capital 20,057 23.3 % N/A 5,170 6.0 % Total Risk-Based Capital 20,075 23.3 % N/A 6,893 8.0 % Tier 1 Leverage 20,057 7.3 % N/A 10,945 4.0 % Supplementary Leverage Ratio (1) 20,057 7.1 % N/A 8,418 3.0 % CSB Common Equity Tier 1 Risk-Based Capital $ 15,577 22.9 % $ 4,430 6.5 % $ 3,067 4.5 % Tier 1 Risk-Based Capital 15,577 22.9 % 5,452 8.0 % 4,089 6.0 % Total Risk-Based Capital 15,594 22.9 % 6,815 10.0 % 5,452 8.0 % Tier 1 Leverage 15,577 7.4 % 10,537 5.0 % 8,429 4.0 % Supplementary Leverage Ratio (1) 15,577 7.2 % N/A N/A 6,524 3.0 % December 31, 2018 CSC Common Equity Tier 1 Risk-Based Capital $ 16,813 17.6 % N/A $ 4,295 4.5 % Tier 1 Risk-Based Capital 19,606 20.5 % N/A 5,726 6.0 % Total Risk-Based Capital 19,628 20.6 % N/A 7,635 8.0 % Tier 1 Leverage 19,606 7.1 % N/A 11,058 4.0 % CSB Common Equity Tier 1 Risk-Based Capital $ 15,832 19.7 % $ 5,233 6.5 % $ 3,623 4.5 % Tier 1 Risk-Based Capital 15,832 19.7 % 6,441 8.0 % 4,831 6.0 % Total Risk-Based Capital 15,853 19.7 % 8,051 10.0 % 6,441 8.0 % Tier 1 Leverage 15,832 7.2 % 11,044 5.0 % 8,836 4.0 % (1) Beginning in 2019, CSC and CSB are subject to the “advanced approaches” framework under the Basel III capital rule. As a result, we are now required to include all components of AOCI in regulatory capital and report our supplementary leverage ratio, which is calculated as Tier 1 capital divided by total leverage exposure. Total leverage exposure includes all on-balance sheet assets and certain off-balance sheet exposures, including unused commitments. Prior to 2019, CSC and CSB elected to opt-out of the requirement to include most components of AOCI in Common Equity Tier 1 Capital; the amounts and ratios for December 31, 2018 are presented on this basis. (2) Under the Basel III capital rule, CSC and CSB are also required to maintain a capital conservation buffer and, beginning in 2019, a countercyclical capital buffer above the regulatory minimum risk-based capital ratios. The capital conservation buffer became 2.5% on January 1, 2019 (1.875% at December 31, 2018). At September 30, 2019 , the countercyclical capital buffer was zero percent. If either buffer falls below the minimum requirement, the Company would be subject to limits on capital distributions and discretionary bonus payments to executive officers. At September 30, 2019 the minimum capital requirement plus capital conservation buffer and countercyclical capital buffer for Common Equity Tier 1 Risk-Based Capital, Tier 1 Risk-Based Capital, and Total Risk-Based Capital ratios were 7.0%, 8.5%, and 10.5%, respectively. N/A Not applicable. Based on its regulatory capital ratios at September 30, 2019 , CSB is considered well capitalized (the highest category) under its respective regulatory capital rules. There are no conditions or events since September 30, 2019 that management believes have changed CSB’s capital category. In late 2017, Schwab acquired a federal savings bank charter which is now called Charles Schwab Premier Bank. At September 30, 2019 , the balance sheet of Charles Schwab Premier Bank consisted primarily of investment securities, and held total assets of $13.5 billion . Charles Schwab Premier Bank 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: September 30, 2019 December 31, 2018 Net Capital $ 2,235 $ 2,304 Minimum net capital required 0.250 0.250 2% of aggregate debit balances 440 436 Net Capital in excess of required net capital $ 1,795 $ 1,868 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 September 30, 2019 . 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 | 9 Months Ended |
Sep. 30, 2019 | |
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 tables: Investor Services Advisor Services Total Three Months Ended September 30, 2019 2018 2019 2018 2019 2018 Net Revenues Net interest revenue $ 1,182 $ 1,138 $ 449 $ 389 $ 1,631 $ 1,527 Asset management and administration fees 586 565 239 244 825 809 Trading revenue 108 112 64 64 172 176 Other 68 53 15 14 83 67 Total net revenues 1,944 1,868 767 711 2,711 2,579 Expenses Excluding Interest 1,070 1,015 405 345 1,475 1,360 Income before taxes on income $ 874 $ 853 $ 362 $ 366 $ 1,236 $ 1,219 Investor Services Advisor Services Total Nine Months Ended September 30, 2019 2018 2019 2018 2019 2018 Net Revenues Net interest revenue $ 3,531 $ 3,158 $ 1,390 $ 1,039 $ 4,921 $ 4,197 Asset management and administration fees 1,679 1,727 687 747 2,366 2,474 Trading revenue 329 354 202 203 531 557 Other 207 182 90 53 297 235 Total net revenues 5,746 5,421 2,369 2,042 8,115 7,463 Expenses Excluding Interest 3,189 3,069 1,190 1,042 4,379 4,111 Income before taxes on income $ 2,557 $ 2,352 $ 1,179 $ 1,000 $ 3,736 $ 3,352 |
New Accounting Standards (Polic
New Accounting Standards (Policy) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Basis of Presentation | 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 2018 Form 10-K. |
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) 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 (ROU) 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. Adoption provides for modified retrospective transition as of the beginning of the earliest comparative period presented in the financial statements in which the entity first applies the new standard or, optionally, through another transition method by which a cumulative-effect adjustment is recorded to retained earnings as of the beginning of the period of adoption. Certain transition relief is permitted if elected by the entity. January 1, 2019 The Company adopted the new lease accounting guidance as of January 1, 2019 under the optional transition method provided electing not to recast its comparative periods. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. The adoption resulted in a gross up of the consolidated balance sheet due to recognition of ROU assets and lease liabilities primarily related to the CS&Co leases of office space and branches. The amounts were based on the present value of our remaining operating lease payments. The Company’s ROU assets and related lease liabilities upon adoption were $596 million and $662 million, respectively. Further details on the impact of adoption are included below in this Note as well as in Note 9. 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. Adoption requires modified retrospective transition as of the beginning of the period of adoption through a cumulative-effect adjustment to retained earnings. January 1, 2019 The Company adopted this guidance as of January 1, 2019 using the modified retrospective method. Adoption resulted in an immaterial cumulative-effect adjustment to retained earnings as of the date of adoption. ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” This ASU amends hedge accounting guidance to better align hedge accounting with risk management activities, while reducing the complexity of applying and reporting on hedge accounting. In addition, for a closed pool of prepayable financial assets, entities will be able to hedge an amount that is not expected to be affected by prepayments, defaults and other events under the “last-of-layer” method. The guidance also permits a one-time reclassification of debt securities eligible to be hedged under the “last-of-layer” method from held to maturity (HTM) to available for sale (AFS) upon adoption. January 1, 2019 The Company adopted this ASU on January 1, 2019. As part of its adoption, the Company made a one-time election to reclassify a portion of its HTM securities eligible to be hedged under the “last-of-layer” method to AFS. As of January 1, 2019, the securities reclassified had a fair value of $8.8 billion and resulted in a net of tax increase to AOCI of $19 million. The adoption of this standard had no other impact on the Company’s financial statements. New Accounting Standards Not Yet Adopted 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 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 other-than-temporary impairment (OTTI) model for AFS debt securities by requiring the use of an allowance, rather than directly reducing the carrying value of the security, and eliminating consideration of the length of time such security has been in an unrealized loss position as a factor in concluding whether a credit loss exists. January 1, 2020 (early adoption permitted) The Company expects that its allowance for credit losses will increase when CECL is adopted, primarily due to an incremental allowance that will be recorded on its HTM corporate debt securities. The incremental allowance at adoption is expected to be immaterial, but the impact of adoption will depend on, among other things, the economic environment, the proportion of securities classified as AFS versus HTM, and the size and type of loan and securities portfolios held by the Company on the date of adoption. A large portion of the securities in the Company’s portfolio will have zero expectation of credit losses based on industry views and regulatory guidance for U.S. Treasury and U.S. agency mortgage-backed securities. Further, we expect to apply the practical expedient based on continuous collateral replenishment to the Company’s pledged asset lines (PALs) and margin loans. The Company has completed the development of credit loss estimation methods for loans and the securities in its portfolio that do not have zero expectation of credit losses, including corporate debt securities and structured products. We are continuing the development of CECL policies and processes and testing and validation of credit loss estimation methods. We have also completed the first of the two planned quarterly CECL parallel runs. Standard Description Required Date of Adoption Effects on the Financial Statements or Other Significant Matters ASU 2018-15, “Intangibles–Goodwill and Other–Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)” Aligns the criteria for capitalizing implementation costs for cloud computing arrangements (CCA) that are service contracts with internal-use software that is developed or purchased and CCAs that include an internal-use software license. This guidance requires that the capitalized implementation costs be recognized over the period of the CCA service contract, subject to impairment evaluation on an ongoing basis. The guidance prescribes the balance sheet, income statement, and statement of cash flow classification of the capitalized implementation costs and related amortization expense, and requires additional quantitative and qualitative disclosures. Adoption provides for retrospective or prospective application to all implementation costs incurred after the date of adoption. January 1, 2020 (early adoption permitted) Historically, Schwab has expensed implementation costs as they are incurred for CCAs that are service contracts. Therefore, adopting this guidance will change the Company’s accounting treatment for these types of implementation costs. The Company plans to adopt this guidance on a prospective basis and continues to evaluate the impacts of this guidance on its financial statements, including EPS. |
New Accounting Standards (Table
New Accounting Standards (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of New Accounting Pronouncements | Adoption of New Accounting Standards Standard Description Date of Adoption Effects on the Financial Statements or Other Significant Matters Accounting Standards Update (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 (ROU) 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. Adoption provides for modified retrospective transition as of the beginning of the earliest comparative period presented in the financial statements in which the entity first applies the new standard or, optionally, through another transition method by which a cumulative-effect adjustment is recorded to retained earnings as of the beginning of the period of adoption. Certain transition relief is permitted if elected by the entity. January 1, 2019 The Company adopted the new lease accounting guidance as of January 1, 2019 under the optional transition method provided electing not to recast its comparative periods. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. The adoption resulted in a gross up of the consolidated balance sheet due to recognition of ROU assets and lease liabilities primarily related to the CS&Co leases of office space and branches. The amounts were based on the present value of our remaining operating lease payments. The Company’s ROU assets and related lease liabilities upon adoption were $596 million and $662 million, respectively. Further details on the impact of adoption are included below in this Note as well as in Note 9. 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. Adoption requires modified retrospective transition as of the beginning of the period of adoption through a cumulative-effect adjustment to retained earnings. January 1, 2019 The Company adopted this guidance as of January 1, 2019 using the modified retrospective method. Adoption resulted in an immaterial cumulative-effect adjustment to retained earnings as of the date of adoption. ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” This ASU amends hedge accounting guidance to better align hedge accounting with risk management activities, while reducing the complexity of applying and reporting on hedge accounting. In addition, for a closed pool of prepayable financial assets, entities will be able to hedge an amount that is not expected to be affected by prepayments, defaults and other events under the “last-of-layer” method. The guidance also permits a one-time reclassification of debt securities eligible to be hedged under the “last-of-layer” method from held to maturity (HTM) to available for sale (AFS) upon adoption. January 1, 2019 The Company adopted this ASU on January 1, 2019. As part of its adoption, the Company made a one-time election to reclassify a portion of its HTM securities eligible to be hedged under the “last-of-layer” method to AFS. As of January 1, 2019, the securities reclassified had a fair value of $8.8 billion and resulted in a net of tax increase to AOCI of $19 million. The adoption of this standard had no other impact on the Company’s financial statements. New Accounting Standards Not Yet Adopted 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 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 other-than-temporary impairment (OTTI) model for AFS debt securities by requiring the use of an allowance, rather than directly reducing the carrying value of the security, and eliminating consideration of the length of time such security has been in an unrealized loss position as a factor in concluding whether a credit loss exists. January 1, 2020 (early adoption permitted) The Company expects that its allowance for credit losses will increase when CECL is adopted, primarily due to an incremental allowance that will be recorded on its HTM corporate debt securities. The incremental allowance at adoption is expected to be immaterial, but the impact of adoption will depend on, among other things, the economic environment, the proportion of securities classified as AFS versus HTM, and the size and type of loan and securities portfolios held by the Company on the date of adoption. A large portion of the securities in the Company’s portfolio will have zero expectation of credit losses based on industry views and regulatory guidance for U.S. Treasury and U.S. agency mortgage-backed securities. Further, we expect to apply the practical expedient based on continuous collateral replenishment to the Company’s pledged asset lines (PALs) and margin loans. The Company has completed the development of credit loss estimation methods for loans and the securities in its portfolio that do not have zero expectation of credit losses, including corporate debt securities and structured products. We are continuing the development of CECL policies and processes and testing and validation of credit loss estimation methods. We have also completed the first of the two planned quarterly CECL parallel runs. Standard Description Required Date of Adoption Effects on the Financial Statements or Other Significant Matters ASU 2018-15, “Intangibles–Goodwill and Other–Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)” Aligns the criteria for capitalizing implementation costs for cloud computing arrangements (CCA) that are service contracts with internal-use software that is developed or purchased and CCAs that include an internal-use software license. This guidance requires that the capitalized implementation costs be recognized over the period of the CCA service contract, subject to impairment evaluation on an ongoing basis. The guidance prescribes the balance sheet, income statement, and statement of cash flow classification of the capitalized implementation costs and related amortization expense, and requires additional quantitative and qualitative disclosures. Adoption provides for retrospective or prospective application to all implementation costs incurred after the date of adoption. January 1, 2020 (early adoption permitted) Historically, Schwab has expensed implementation costs as they are incurred for CCAs that are service contracts. Therefore, adopting this guidance will change the Company’s accounting treatment for these types of implementation costs. The Company plans to adopt this guidance on a prospective basis and continues to evaluate the impacts of this guidance on its financial statements, including EPS. The cumulative effect of the changes made to our consolidated January 1, 2019 balance sheet for the adoption of ASU 2016-02, Leases (Topic 842) were as follows: Balance at Adjustments Due to ASU 2016-02 Balance at Assets Other assets (1) $ 2,046 $ 588 $ 2,634 Liabilities Accrued expenses and other liabilities (2) $ 2,954 $ 588 $ 3,542 (1) The adoption adjustment is comprised of two parts: 1) an increase of $596 million for the recognition of the January 1, 2019 ROU asset and 2) an $8 million decrease related to prepaid rent and initial direct costs, which were reclassified to the ROU asset upon adoption of ASU 2016-02. (2) The adoption adjustment is comprised of two parts: 1) an increase of $662 million for the recognition of the January 1, 2019 lease liability and 2) a $74 million decrease related to deferred rent and lease incentives, which were reclassified to the ROU asset upon adoption of ASU 2016-02. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 Nine Months Ended 2019 2018 2019 2018 Net interest revenue Interest revenue $ 1,892 $ 1,755 $ 5,817 $ 4,766 Interest expense (261 ) (228 ) (896 ) (569 ) Net interest revenue 1,631 1,527 4,921 4,197 Asset management and administration fees Mutual funds, ETFs, and CTFs (1) 445 446 1,287 1,419 Advice solutions 305 294 878 859 Other (1) 75 69 201 196 Asset management and administration fees 825 809 2,366 2,474 Trading revenue Commissions 159 155 477 501 Principal transactions 13 21 54 56 Trading revenue 172 176 531 557 Other 83 67 297 235 Total net revenues $ 2,711 $ 2,579 $ 8,115 $ 7,463 (1) Beginning in the first quarter of 2019, a change was made to move CTFs from other asset management and administration fees. Prior periods have been recast to reflect this change. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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: September 30, 2019 Amortized Gross Gross Fair Available for sale securities U.S. agency mortgage-backed securities $ 40,179 $ 299 $ 47 $ 40,431 U.S. Treasury securities 5,034 3 10 5,027 Asset-backed securities (1) 4,773 35 7 4,801 Corporate debt securities (2) 4,630 57 1 4,686 Certificates of deposit 1,000 4 — 1,004 Commercial paper (2,3) 520 1 — 521 Non-agency commercial mortgage-backed securities 13 — — 13 Total available for sale securities $ 56,149 $ 399 $ 65 $ 56,483 Held to maturity securities U.S. agency mortgage-backed securities $ 114,276 $ 1,974 $ 238 $ 116,012 Asset-backed securities (1) 18,323 74 38 18,359 Corporate debt securities (2) 4,659 58 2 4,715 U.S. state and municipal securities 1,306 107 — 1,413 Non-agency commercial mortgage-backed securities 1,136 28 — 1,164 U.S. Treasury securities 224 6 — 230 Certificates of deposit 200 — — 200 Foreign government agency securities 50 — — 50 Other 20 — — 20 Total held to maturity securities $ 140,194 $ 2,247 $ 278 $ 142,163 December 31, 2018 Available for sale securities U.S. agency mortgage-backed securities $ 25,594 $ 44 $ 82 $ 25,556 U.S. Treasury securities 18,410 — 108 18,302 Asset-backed securities (1) 10,086 14 15 10,085 Corporate debt securities (2) 7,477 10 20 7,467 Certificates of deposit 3,682 4 1 3,685 U.S. agency notes 900 — 2 898 Commercial paper (2,3) 522 — — 522 Foreign government agency securities 50 — 1 49 Non-agency commercial mortgage-backed securities 14 — — 14 Total available for sale securities $ 66,735 $ 72 $ 229 $ 66,578 Held to maturity securities U.S. agency mortgage-backed securities $ 118,064 $ 217 $ 2,188 $ 116,093 Asset-backed securities (1) 18,502 83 39 18,546 Corporate debt securities (2) 4,477 2 47 4,432 U.S. state and municipal securities 1,327 24 3 1,348 Non-agency commercial mortgage-backed securities 1,156 3 17 1,142 U.S. Treasury securities 223 — 6 217 Certificates of deposit 200 1 — 201 Foreign government agency securities 50 — 1 49 Other 10 — — 10 Total held to maturity securities $ 144,009 $ 330 $ 2,301 $ 142,038 (1) Approximately 43% and 36% of asset-backed securities held as of September 30, 2019 and December 31, 2018 , respectively, were Federal Family Education Loan Program Asset-Backed Securities. Asset-backed securities collateralized by credit card receivables represented approximately 42% of the asset-backed securities held as of September 30, 2019 and December 31, 2018 . (2) As of September 30, 2019 and December 31, 2018 , approximately 35% and 26% , 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 18% of the holdings of these securities were issued by institutions in the information technology industry as of September 30, 2019 and December 31, 2018 . (3) Included in cash and cash equivalents on the condensed consolidated balance sheets, but excluded from this table is $0.9 billion and $4.9 billion of AFS commercial paper as of September 30, 2019 and December 31, 2018 , respectively. These holdings have maturities of three months or less at the time of acquisition and an aggregate market value equal to amortized cost. |
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 September 30, 2019 Fair Unrealized Fair Unrealized Fair Unrealized Available for sale securities U.S. agency mortgage-backed securities $ 12,063 $ 24 $ 6,317 $ 23 $ 18,380 $ 47 U.S. Treasury securities 377 — 3,161 10 3,538 10 Asset-backed securities 763 1 398 6 1,161 7 Corporate debt securities 149 1 499 — 648 1 Total $ 13,352 $ 26 $ 10,375 $ 39 $ 23,727 $ 65 Held to maturity securities U.S. agency mortgage-backed securities $ 11,838 $ 37 $ 20,897 $ 201 $ 32,735 $ 238 Asset-backed securities 7,638 34 556 4 8,194 38 Corporate debt securities 416 1 354 1 770 2 Total $ 19,892 $ 72 $ 21,807 $ 206 $ 41,699 $ 278 Total securities with unrealized losses (1) $ 33,244 $ 98 $ 32,182 $ 245 $ 65,426 $ 343 December 31, 2018 Available for sale securities U.S. agency mortgage-backed securities $ 9,529 $ 32 $ 4,257 $ 50 $ 13,786 $ 82 U.S. Treasury securities 4,951 6 7,037 102 11,988 108 Asset-backed securities 4,050 9 837 6 4,887 15 Corporate debt securities 3,561 19 254 1 3,815 20 Certificates of deposit 1,217 1 150 — 1,367 1 U.S. agency notes 195 — 304 2 499 2 Foreign government agency securities — — 49 1 49 1 Total $ 23,503 $ 67 $ 12,888 $ 162 $ 36,391 $ 229 Held to maturity securities U.S. agency mortgage-backed securities $ 29,263 $ 222 $ 56,435 $ 1,966 $ 85,698 $ 2,188 Asset-backed securities 6,795 35 376 4 7,171 39 Corporate debt securities 2,909 29 1,066 18 3,975 47 U.S. state and municipal securities 77 2 18 1 95 3 Non-agency commercial mortgage-backed securities 283 2 632 15 915 17 U.S. Treasury securities — — 218 6 218 6 Foreign government agency securities — — 49 1 49 1 Total $ 39,327 $ 290 $ 58,794 $ 2,011 $ 98,121 $ 2,301 Total securities with unrealized losses (2) $ 62,830 $ 357 $ 71,682 $ 2,173 $ 134,512 $ 2,530 (1) The number of investment positions with unrealized losses totaled 343 for AFS securities and 625 for HTM securities. (2) The number of investment positions with unrealized losses totaled 441 for AFS securities and 1,524 |
Maturities of Securities Available for Sale and Securities Held to Maturity | The maturities of AFS and HTM securities are as follows: September 30, 2019 Within After 1 year After 5 years After Total Available for sale securities U.S. agency mortgage-backed securities $ 51 $ 1,909 $ 11,061 $ 27,410 $ 40,431 U.S. Treasury securities 3,541 1,486 — — 5,027 Asset-backed securities 35 3,752 794 220 4,801 Corporate debt securities 1,100 3,415 171 — 4,686 Certificates of deposit 501 503 — — 1,004 Commercial paper 521 — — — 521 Non-agency commercial mortgage-backed securities — — — 13 13 Total fair value $ 5,749 $ 11,065 $ 12,026 $ 27,643 $ 56,483 Total amortized cost $ 5,743 $ 10,994 $ 11,996 $ 27,416 $ 56,149 Held to maturity securities U.S. agency mortgage-backed securities $ 663 $ 15,472 $ 35,048 $ 64,829 $ 116,012 Asset-backed securities — 3,227 7,940 7,192 18,359 Corporate debt securities 778 3,079 858 — 4,715 U.S. state and municipal securities — 99 452 862 1,413 Non-agency commercial mortgage-backed securities — 367 — 797 1,164 U.S. Treasury securities — — 230 — 230 Certificates of deposit 200 — — — 200 Foreign government agency securities — 50 — — 50 Other — — — 20 20 Total fair value $ 1,641 $ 22,294 $ 44,528 $ 73,700 $ 142,163 Total amortized cost $ 1,637 $ 21,989 $ 43,368 $ 73,200 $ 140,194 |
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 Nine Months Ended September 30, 2019 2018 2019 2018 Proceeds $ 5,436 $ — $ 21,710 $ 115 Gross realized gains 5 — 15 — Gross realized losses 4 — 10 — |
Bank Loans and Related Allowa_2
Bank Loans and Related Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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: September 30, 2019 Current 30-59 days 60-89 days > 90 days past (3) Total past due Total Allowance Total First Mortgages (1,2) $ 10,607 $ 20 $ 2 $ 11 $ 33 $ 10,640 $ 10 $ 10,630 HELOCs (1,2) 1,208 3 1 8 12 1,220 4 1,216 Pledged asset lines 4,876 2 — — 2 4,878 — 4,878 Other 172 — — 2 2 174 3 171 Total bank loans $ 16,863 $ 25 $ 3 $ 21 $ 49 $ 16,912 $ 17 $ 16,895 December 31, 2018 First Mortgages (1,2) $ 10,349 $ 21 $ 2 $ 12 $ 35 $ 10,384 $ 14 $ 10,370 HELOCs (1,2) 1,493 3 1 8 12 1,505 5 1,500 Pledged asset lines 4,558 3 — — 3 4,561 — 4,561 Other 180 — — — — 180 2 178 Total bank loans $ 16,580 $ 27 $ 3 $ 20 $ 50 $ 16,630 $ 21 $ 16,609 (1) First Mortgages and HELOCs include unamortized premiums and discounts and direct origination costs of $71 million and $73 million at September 30, 2019 and December 31, 2018 , respectively. (2) At September 30, 2019 and December 31, 2018 , 46% and 47% , respectively, 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 September 30, 2019 or December 31, 2018 . |
Changes in Allowance for Loan Losses | Changes in the allowance for loan losses were as follows: September 30, 2019 September 30, 2018 Three Months Ended First Mortgages HELOCs Other Total (1) First Mortgages HELOCs Other Total (1) Balance at beginning of period $ 12 $ 5 $ 2 $ 19 $ 17 $ 7 $ 2 $ 26 Charge-offs — — — — — — — — Recoveries — — — — — 1 — 1 Provision for loan losses (2 ) (1 ) 1 (2 ) — (1 ) — (1 ) Balance at end of period $ 10 $ 4 $ 3 $ 17 $ 17 $ 7 $ 2 $ 26 September 30, 2019 September 30, 2018 Nine Months Ended First Mortgages HELOCs Other Total (1) First Mortgages HELOCs Other Total (1) Balance at beginning of period $ 14 $ 5 $ 2 $ 21 $ 16 $ 8 $ 2 $ 26 Charge-offs — — — — — — (1 ) (1 ) Recoveries 1 1 — 2 — 2 — 2 Provision for loan losses (5 ) (2 ) 1 (6 ) 1 (3 ) 1 (1 ) Balance at end of period $ 10 $ 4 $ 3 $ 17 $ 17 $ 7 $ 2 $ 26 (1) All PALs were fully collateralized by securities with fair values in excess of borrowings as of each period presented. |
Impaired Bank Loan Related Assets | A summary of impaired bank loan-related assets is as follows: September 30, 2019 December 31, 2018 Nonaccrual loans (1) $ 21 $ 21 Other real estate owned (2) 2 3 Total nonperforming assets 23 24 Troubled debt restructurings 2 4 Total impaired assets $ 25 $ 28 (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: September 30, 2019 Balance Weighted Average Percent of First Mortgages Estimated Current LTV < 70% $ 9,574 776 0.03 % >70% – < 90% 1,061 770 0.28 % >90% – < 100% 4 756 — >100% 1 768 — Total $ 10,640 776 0.05 % HELOCs Estimated Current LTV (1) < 70% $ 1,157 769 0.25 % >70% – < 90% 58 751 0.83 % >90% – < 100% 3 716 5.06 % >100% 2 659 — Total $ 1,220 768 0.29 % Pledged asset lines Weighted-Average LTV (1) =70% $ 4,878 767 — December 31, 2018 Balance Weighted Average Percent of First Mortgages Estimated Current LTV < 70% $ 9,396 776 0.04 % >70% – < 90% 985 769 0.41 % >90% – < 100% 2 717 — >100% 1 753 — Total $ 10,384 775 0.07 % HELOCs Estimated Current LTV (1) < 70% $ 1,416 770 0.13 % >70% – < 90% 80 752 0.60 % >90% – < 100% 6 729 3.36 % >100% 3 702 — Total $ 1,505 769 0.17 % Pledged asset lines Weighted-Average LTV (1) =70% $ 4,561 766 — (1) Represents the LTV for the full line of credit (drawn and undrawn). September 30, 2019 First Mortgages HELOCs Year of origination Pre-2015 $ 1,815 $ 872 2015 889 85 2016 2,382 82 2017 2,137 90 2018 1,611 67 2019 1,806 24 Total $ 10,640 $ 1,220 Origination FICO <620 $ 4 $ — 620 – 679 76 6 680 – 739 1,624 236 > 740 8,936 978 Total $ 10,640 $ 1,220 Origination LTV < 70% $ 7,980 $ 869 >70% – < 90% 2,656 346 >90% – < 100% 4 5 Total $ 10,640 $ 1,220 December 31, 2018 First Mortgages HELOCs Year of origination Pre-2015 $ 2,387 $ 1,140 2015 1,050 106 2016 2,606 95 2017 2,366 99 2018 1,975 65 Total $ 10,384 $ 1,505 Origination FICO <620 $ 5 $ — 620 – 679 83 8 680 – 739 1,626 282 > 740 8,670 1,215 Total $ 10,384 $ 1,505 Origination LTV < 70% $ 7,815 $ 1,064 >70% – < 90% 2,564 434 >90% – < 100% 5 7 Total $ 10,384 $ 1,505 |
Converting to Amortizing Loans | The following table presents when current outstanding HELOCs will convert to amortizing loans: September 30, 2019 Balance Converted to an amortizing loan by period end $ 551 Within 1 year 52 > 1 year – 3 years 84 > 3 years – 5 years 170 > 5 years 363 Total $ 1,220 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 is not the primary beneficiary, are summarized in the table below: September 30, 2019 December 31, 2018 Aggregate Aggregate Maximum Aggregate Aggregate Maximum LIHTC investments (1) $ 498 $ 298 $ 498 $ 338 $ 188 $ 338 Other CRA investments (2) 91 — 125 70 — 124 Total $ 589 $ 298 $ 623 $ 408 $ 188 $ 462 (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 HTM securities, bank loans – net, or other assets on the condensed consolidated balance sheets. |
Bank Deposits (Tables)
Bank Deposits (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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: September 30, 2019 December 31, 2018 Interest-bearing deposits: Deposits swept from brokerage accounts $ 191,456 $ 212,311 Checking 12,020 12,523 Savings and other 5,146 5,827 Total interest-bearing deposits 208,622 230,661 Non-interest-bearing deposits 705 762 Total bank deposits $ 209,327 $ 231,423 |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt Including Unamortized Debt Discounts and Premiums | The following table lists long-term debt by instrument outstanding as of September 30, 2019 and December 31, 2018 : Date of Principal Amount Outstanding Issuance September 30, 2019 December 31, 2018 Fixed-rate Senior Notes: 4.450% due July 22, 2020 07/22/10 $ 700 $ 700 3.250% due May 21, 2021 05/22/18 600 600 3.225% due September 1, 2022 08/29/12 256 256 2.650% due January 25, 2023 12/07/17 800 800 3.550% due February 1, 2024 10/31/18 500 500 3.000% due March 10, 2025 03/10/15 375 375 3.850% due May 21, 2025 05/22/18 750 750 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 4.000% due February 1, 2029 10/31/18 600 600 3.250% due May 22, 2029 05/22/19 600 — Floating-rate Senior Notes: Three-month LIBOR + 0.32% due May 21, 2021 05/22/18 600 600 Total Senior Notes 7,481 6,881 5.450% Finance lease obligation (1) 06/04/04 — 52 Unamortized discount — net (14 ) (15 ) Debt issuance costs (40 ) (40 ) Total long-term debt $ 7,427 $ 6,878 (1) The finance lease obligation was extinguished through an assignment agreement during the first quarter of 2019. |
Annual Maturities on Long-term Debt Outstanding | Annual maturities on long-term debt outstanding at September 30, 2019 are as follows: Maturities 2019 $ — 2020 700 2021 1,200 2022 256 2023 800 Thereafter 4,525 Total maturities 7,481 Unamortized discount — net (14 ) Debt issuance costs (40 ) Total long-term debt $ 7,427 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Leases | The following table details the amounts and locations of lease assets and liabilities on the condensed consolidated balance sheet: Leases Balance Sheet Classification September 30, 2019 Assets Operating lease assets Other assets $ 596 Liabilities Operating lease liabilities Accrued expenses and other liabilities $ 665 |
Schedule of Lease Cost and Lease Term and Discount Rate | The components of lease expense are as follows: Lease Cost Three Months Ended Nine Months Ended Operating lease cost (1) $ 34 $ 100 Variable lease cost (2) 8 25 (1) Includes short-term leases, which are immaterial. (2) Includes payments that are entirely variable and amounts that represent the difference between payments based on an index or rate that would be reflected in the lease liability and what is actually incurred. The following tables present supplemental lease information as of September 30, 2019 : Lease Term and Discount Rate Weighted-average remaining lease term (years) 7.18 Weighted-average discount rate 3.47 % |
Schedule of Maturity of Lease Liabilities | Maturity of Lease Liabilities Operating Leases (1) 2019 $ 26 2020 136 2021 113 2022 92 2023 84 Thereafter 309 Total lease payments 760 Less: Interest 95 Present value of lease liabilities $ 665 (1) Operating lease payments exclude $41 million of legally binding minimum lease payments for leases signed but not yet commenced. These leases will commence between 2019 and 2020 with lease terms of five years to 20 years. |
Schedule of Maturity of Lease Liabilities, Before 842 | In accordance with the disclosure requirements for our adoption of ASU 2016-02, the Company is presenting the operating leases commitment table as of December 31, 2018. The following table is unchanged from the disclosure in Note 14 in the 2018 Form 10-K: Operating Subleases Net 2019 $ 131 $ 4 $ 127 2020 125 4 121 2021 101 4 97 2022 79 2 77 2023 72 1 71 Thereafter 282 — 282 Total $ 790 $ 15 $ 775 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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: September 30, 2019 December 31, 2018 Commitments to extend credit related to unused HELOCs, PALs, and other lines of credit $ 11,234 $ 11,046 Commitments to purchase First Mortgage loans 1,976 268 Total $ 13,210 $ 11,314 |
Financial Instruments Subject_2
Financial Instruments Subject to Off-Balance Sheet Credit Risk (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 and December 31, 2018 : Gross Gross Amounts Net Amounts Gross Amounts Not Offset in the Net Counterparty Collateral September 30, 2019 Assets Resale agreements (1) $ 9,707 $ — $ 9,707 $ — $ (9,707 ) (2) $ — Securities borrowed (3) 877 — 877 (871 ) (6 ) — Total $ 10,584 $ — $ 10,584 $ (871 ) $ (9,713 ) $ — Liabilities Securities loaned (4,5) $ 1,471 $ — $ 1,471 $ (871 ) $ (489 ) $ 111 Total $ 1,471 $ — $ 1,471 $ (871 ) $ (489 ) $ 111 December 31, 2018 Assets Resale agreements (1) $ 7,195 $ — $ 7,195 $ — $ (7,195 ) (2) $ — Securities borrowed (3) 101 — 101 (98 ) (3 ) — Total $ 7,296 $ — $ 7,296 $ (98 ) $ (7,198 ) $ — Liabilities Securities loaned (4,5) $ 1,184 $ — $ 1,184 $ (98 ) $ (975 ) $ 111 Total $ 1,184 $ — $ 1,184 $ (98 ) $ (975 ) $ 111 (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 September 30, 2019 and December 31, 2018 , the fair value of collateral received in connection with resale agreements that are available to be repledged or sold was $9.9 billion and $7.4 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 September 30, 2019 and December 31, 2018 . (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: September 30, 2019 December 31, 2018 Fair value of client securities available to be pledged $ 26,614 $ 26,628 Fair value of client securities pledged for: Fulfillment of requirements with the Options Clearing Corporation (1) 1,778 2,315 Fulfillment of client short sales 2,023 1,292 Securities lending to other broker-dealers 1,204 974 Total collateral pledged $ 5,005 $ 4,581 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 $139 million as of September 30, 2019 and $97 million as of December 31, 2018 . (1) Client securities pledged to fulfill client margin requirements for open option contracts established with the Options Clearing Corporation. |
Fair Values of Assets and Lia_2
Fair Values of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
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: September 30, 2019 Level 1 Level 2 Level 3 Balance at Cash equivalents: Money market funds $ 4,193 $ — $ — $ 4,193 Commercial paper — 923 — 923 Total cash equivalents 4,193 923 — 5,116 Investments segregated and on deposit for regulatory purposes: Certificates of deposit — 1,951 — 1,951 U.S. Government securities — 1,605 — 1,605 Total investments segregated and on deposit for regulatory purposes — 3,556 — 3,556 Other securities owned: Equity and bond mutual funds 378 — — 378 State and municipal debt obligations — 32 — 32 Equity, U.S. Government and corporate debt, and other securities 3 74 — 77 Schwab Funds ® money market funds 10 — — 10 Total other securities owned 391 106 — 497 Available for sale securities: U.S. agency mortgage-backed securities — 40,431 — 40,431 U.S. Treasury securities — 5,027 — 5,027 Asset-backed securities — 4,801 — 4,801 Corporate debt securities — 4,686 — 4,686 Certificates of deposit — 1,004 — 1,004 Commercial paper — 521 — 521 Non-agency commercial mortgage-backed securities — 13 — 13 Total available for sale securities — 56,483 — 56,483 Total $ 4,584 $ 61,068 $ — $ 65,652 December 31, 2018 Level 1 Level 2 Level 3 Balance at Cash equivalents: Money market funds $ 3,429 $ — $ — $ 3,429 Commercial paper — 4,863 — 4,863 Total cash equivalents 3,429 4,863 — 8,292 Investments segregated and on deposit for regulatory purposes: Certificates of deposit — 1,396 — 1,396 U.S. Government securities — 3,275 — 3,275 Total investments segregated and on deposit for regulatory purposes — 4,671 — 4,671 Other securities owned: Equity and bond mutual funds 441 — — 441 State and municipal debt obligations — 39 — 39 Equity, U.S. Government and corporate debt, and other securities 3 30 — 33 Schwab Funds ® money market funds 26 — — 26 Total other securities owned 470 69 — 539 Available for sale securities: U.S. agency mortgage-backed securities — 25,556 — 25,556 U.S. Treasury securities — 18,302 — 18,302 Asset-backed securities — 10,085 — 10,085 Corporate debt securities — 7,467 — 7,467 Certificates of deposit — 3,685 — 3,685 U.S. agency notes — 898 — 898 Commercial paper — 522 — 522 Foreign government agency securities — 49 — 49 Non-agency commercial mortgage-backed securities — 14 — 14 Total available for sale securities — 66,578 — 66,578 Total $ 3,899 $ 76,181 $ — $ 80,080 |
Fair Value of Other Financial Instruments | The following tables present the fair value hierarchy for other financial instruments: September 30, 2019 Carrying Level 1 Level 2 Level 3 Balance at Assets Cash and cash equivalents $ 15,136 $ — $ 15,136 $ — $ 15,136 Cash and investments segregated and on deposit for 12,595 — 12,595 — 12,595 Receivables from brokers, dealers, and clearing 1,317 — 1,317 — 1,317 Receivables from brokerage clients — net 21,061 — 21,061 — 21,061 Held to maturity securities: U.S. agency mortgage-backed securities 114,276 — 116,012 — 116,012 Asset-backed securities 18,323 — 18,359 — 18,359 Corporate debt securities 4,659 — 4,715 — 4,715 U.S. state and municipal securities 1,306 — 1,413 — 1,413 Non-agency commercial mortgage-backed securities 1,136 — 1,164 — 1,164 U.S. Treasury securities 224 — 230 — 230 Certificates of deposit 200 — 200 — 200 Foreign government agency securities 50 — 50 — 50 Other 20 — 20 — 20 Total held to maturity securities 140,194 — 142,163 — 142,163 Bank loans — net: First Mortgages 10,630 — 10,682 — 10,682 HELOCs 1,216 — 1,255 — 1,255 Pledged asset lines 4,878 — 4,878 — 4,878 Other 171 — 171 — 171 Total bank loans — net 16,895 — 16,986 — 16,986 Other assets 617 — 617 — 617 Total $ 207,815 $ — $ 209,875 $ — $ 209,875 Liabilities Bank deposits $ 209,327 $ — $ 209,327 $ — $ 209,327 Payables to brokers, dealers, and clearing organizations 1,736 — 1,736 — 1,736 Payables to brokerage clients 35,622 — 35,622 — 35,622 Accrued expenses and other liabilities 1,252 — 1,252 — 1,252 Long-term debt 7,427 — 7,771 — 7,771 Total $ 255,364 $ — $ 255,708 $ — $ 255,708 December 31, 2018 Carrying Level 1 Level 2 Level 3 Balance at Assets Cash and cash equivalents $ 19,646 $ — $ 19,646 $ — $ 19,646 Cash and investments segregated and on deposit for 8,886 — 8,886 — 8,886 Receivables from brokers, dealers, and clearing 553 — 553 — 553 Receivables from brokerage clients — net 21,641 — 21,641 — 21,641 Held to maturity securities: U.S. agency mortgage-backed securities 118,064 — 116,093 — 116,093 Asset-backed securities 18,502 — 18,546 — 18,546 Corporate debt securities 4,477 — 4,432 — 4,432 U.S. state and municipal securities 1,327 — 1,348 — 1,348 Non-agency commercial mortgage-backed securities 1,156 — 1,142 — 1,142 U.S. Treasury securities 223 — 217 — 217 Certificates of deposit 200 — 201 — 201 Foreign government agency securities 50 — 49 — 49 Other 10 — 10 — 10 Total held to maturity securities 144,009 — 142,038 — 142,038 Bank loans — net: First Mortgages 10,370 — 10,193 — 10,193 HELOCs 1,500 — 1,583 — 1,583 Pledged asset lines 4,561 — 4,561 — 4,561 Other 178 — 178 — 178 Total bank loans — net 16,609 — 16,515 — 16,515 Other assets 460 — 460 — 460 Total $ 211,804 $ — $ 209,739 $ — $ 209,739 Liabilities Bank deposits $ 231,423 $ — $ 231,423 $ — $ 231,423 Payables to brokers, dealers, and clearing organizations 1,831 — 1,831 — 1,831 Payables to brokerage clients 32,726 — 32,726 — 32,726 Accrued expenses and other liabilities 1,370 — 1,370 — 1,370 Long-term debt 6,878 — 6,827 — 6,827 Total $ 274,228 $ — $ 274,177 $ — $ 274,177 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Preferred Stock Issued and Outstanding | The Company’s preferred stock issued and outstanding is as follows: Liquidation Preference Per Share Dividend Rate in Effect at September 30, 2019 Earliest Redemption Date Date at Which Dividend Rate Becomes Floating Floating Annual Rate of Three-Month LIBOR plus: Shares Issued and Outstanding (in thousands) at Carrying Value at September 30, (1) December 31, 2018 (1) September 30, 2019 December 31, 2018 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. |
Dividends Declared | Dividends declared on the Company’s preferred stock are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Total Per Share Total Per Share Total Per Share Total Per Share Series A $ — $ — $ — $ — $ 14 $ 35.00 $ 14 $ 35.00 Series C 9 15.00 9 15.00 27 45.00 27 45.00 Series D 11 14.88 11 14.88 33 44.64 33 44.64 Series E 14 2,312.50 14 2,312.50 28 4,625.00 28 4,625.00 Series F — — — — 13 2,500.00 15 2,930.56 Total $ 34 $ 34 $ 115 $ 117 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Components of Other Comprehensive Income (Loss) | The components of other comprehensive income (loss) are as follows: 2019 2018 Three Months Ended September 30, Before Tax Net of Before Tax Net of Change in net unrealized gain (loss) on available for sale securities: Net unrealized gain (loss) $ 51 $ (12 ) $ 39 $ (43 ) $ 11 $ (32 ) Other reclassifications included in other revenue (1 ) — (1 ) — — — Amortization of amounts previously recorded upon transfer to held to maturity 10 (3 ) 7 8 (2 ) 6 Other comprehensive income (loss) $ 60 $ (15 ) $ 45 $ (35 ) $ 9 $ (26 ) 2019 2018 Nine Months Ended September 30, Before Tax Net of Before Tax Net of Change in net unrealized gain (loss) on available for sale securities: Net unrealized gain (loss) $ 496 $ (119 ) $ 377 $ (184 ) $ 45 $ (139 ) Other reclassifications included in other revenue (5 ) 1 (4 ) — — — Amortization of amounts previously recorded upon transfer to held to maturity 30 (7 ) 23 26 (6 ) 20 Other comprehensive income (loss) $ 521 $ (125 ) $ 396 $ (158 ) $ 39 $ (119 ) |
Accumulated Other Comprehensive Income Balances | AOCI balances are as follows: Total AOCI Balance at June 30, 2018 $ (278 ) Available for sale securities: Net unrealized gain (loss) (32 ) Held to maturity securities: Amortization of amounts previously recorded upon transfer to held to maturity from available for sale 6 Balance at September 30, 2018 $ (304 ) Balance at June 30, 2019 $ 99 Available for sale securities: Net unrealized gain (loss), excluding transfers to available for sale from held to maturity 39 Other reclassifications included in other revenue (1 ) Held to maturity securities: Amortization of amounts previously recorded upon transfer to held to maturity from available for sale 7 Balance at September 30, 2019 $ 144 Total AOCI Balance at December 31, 2017 $ (152 ) Adoption of accounting standards (33 ) Available for sale securities: Net unrealized gain (loss) (139 ) Held to maturity securities: Amortization of amounts previously recorded upon transfer to held to maturity from available for sale 20 Balance at September 30, 2018 $ (304 ) Balance at December 31, 2018 $ (252 ) Available for sale securities: Net unrealized gain (loss), excluding transfers to available for sale from held to maturity 358 Net unrealized gain on securities transferred to available for sale from held to maturity (1) 19 Other reclassifications included in other revenue (4 ) Held to maturity securities: Amortization of amounts previously recorded upon transfer to held to maturity from available for sale 23 Balance at September 30, 2019 $ 144 (1) As part of the adoption of ASU 2017-12, in the first quarter of 2019, the Company made a one-time election to transfer a portion of its HTM securities to AFS. The transfer resulted in a net of tax increase to AOCI of $19 million . See Notes 2 and 4 for additional discussion on the transfer of HTM securities to AFS. |
Regulatory Requirements (Tables
Regulatory Requirements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Banking and Thrift [Abstract] | |
Regulatory Capital and Ratios | The regulatory capital and ratios for CSC (consolidated) and CSB are as follows: Actual (1) Minimum to be Minimum Capital Requirement September 30, 2019 Amount Ratio Amount Ratio Amount Ratio (2) CSC Common Equity Tier 1 Risk-Based Capital $ 17,264 20.0 % N/A $ 3,877 4.5 % Tier 1 Risk-Based Capital 20,057 23.3 % N/A 5,170 6.0 % Total Risk-Based Capital 20,075 23.3 % N/A 6,893 8.0 % Tier 1 Leverage 20,057 7.3 % N/A 10,945 4.0 % Supplementary Leverage Ratio (1) 20,057 7.1 % N/A 8,418 3.0 % CSB Common Equity Tier 1 Risk-Based Capital $ 15,577 22.9 % $ 4,430 6.5 % $ 3,067 4.5 % Tier 1 Risk-Based Capital 15,577 22.9 % 5,452 8.0 % 4,089 6.0 % Total Risk-Based Capital 15,594 22.9 % 6,815 10.0 % 5,452 8.0 % Tier 1 Leverage 15,577 7.4 % 10,537 5.0 % 8,429 4.0 % Supplementary Leverage Ratio (1) 15,577 7.2 % N/A N/A 6,524 3.0 % December 31, 2018 CSC Common Equity Tier 1 Risk-Based Capital $ 16,813 17.6 % N/A $ 4,295 4.5 % Tier 1 Risk-Based Capital 19,606 20.5 % N/A 5,726 6.0 % Total Risk-Based Capital 19,628 20.6 % N/A 7,635 8.0 % Tier 1 Leverage 19,606 7.1 % N/A 11,058 4.0 % CSB Common Equity Tier 1 Risk-Based Capital $ 15,832 19.7 % $ 5,233 6.5 % $ 3,623 4.5 % Tier 1 Risk-Based Capital 15,832 19.7 % 6,441 8.0 % 4,831 6.0 % Total Risk-Based Capital 15,853 19.7 % 8,051 10.0 % 6,441 8.0 % Tier 1 Leverage 15,832 7.2 % 11,044 5.0 % 8,836 4.0 % (1) Beginning in 2019, CSC and CSB are subject to the “advanced approaches” framework under the Basel III capital rule. As a result, we are now required to include all components of AOCI in regulatory capital and report our supplementary leverage ratio, which is calculated as Tier 1 capital divided by total leverage exposure. Total leverage exposure includes all on-balance sheet assets and certain off-balance sheet exposures, including unused commitments. Prior to 2019, CSC and CSB elected to opt-out of the requirement to include most components of AOCI in Common Equity Tier 1 Capital; the amounts and ratios for December 31, 2018 are presented on this basis. (2) Under the Basel III capital rule, CSC and CSB are also required to maintain a capital conservation buffer and, beginning in 2019, a countercyclical capital buffer above the regulatory minimum risk-based capital ratios. The capital conservation buffer became 2.5% on January 1, 2019 (1.875% at December 31, 2018). At September 30, 2019 , the countercyclical capital buffer was zero percent. If either buffer falls below the minimum requirement, the Company would be subject to limits on capital distributions and discretionary bonus payments to executive officers. At September 30, 2019 the minimum capital requirement plus capital conservation buffer and countercyclical capital buffer for Common Equity Tier 1 Risk-Based Capital, Tier 1 Risk-Based Capital, and Total Risk-Based Capital ratios were 7.0%, 8.5%, and 10.5%, respectively. N/A Not applicable. |
Net Capital and Net Capital Requirements | Net capital and net capital requirements for CS&Co are as follows: September 30, 2019 December 31, 2018 Net Capital $ 2,235 $ 2,304 Minimum net capital required 0.250 0.250 2% of aggregate debit balances 440 436 Net Capital in excess of required net capital $ 1,795 $ 1,868 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Financial Information for Reportable Segments | Financial information for the segments is presented in the following tables: Investor Services Advisor Services Total Three Months Ended September 30, 2019 2018 2019 2018 2019 2018 Net Revenues Net interest revenue $ 1,182 $ 1,138 $ 449 $ 389 $ 1,631 $ 1,527 Asset management and administration fees 586 565 239 244 825 809 Trading revenue 108 112 64 64 172 176 Other 68 53 15 14 83 67 Total net revenues 1,944 1,868 767 711 2,711 2,579 Expenses Excluding Interest 1,070 1,015 405 345 1,475 1,360 Income before taxes on income $ 874 $ 853 $ 362 $ 366 $ 1,236 $ 1,219 Investor Services Advisor Services Total Nine Months Ended September 30, 2019 2018 2019 2018 2019 2018 Net Revenues Net interest revenue $ 3,531 $ 3,158 $ 1,390 $ 1,039 $ 4,921 $ 4,197 Asset management and administration fees 1,679 1,727 687 747 2,366 2,474 Trading revenue 329 354 202 203 531 557 Other 207 182 90 53 297 235 Total net revenues 5,746 5,421 2,369 2,042 8,115 7,463 Expenses Excluding Interest 3,189 3,069 1,190 1,042 4,379 4,111 Income before taxes on income $ 2,557 $ 2,352 $ 1,179 $ 1,000 $ 3,736 $ 3,352 |
New Accounting Standards (Detai
New Accounting Standards (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Operating lease right-of-use asset | $ 596 | ||||||
Operating lease liability | 665 | ||||||
Accumulated other comprehensive income (loss) | $ 144 | $ 99 | $ (252) | $ (304) | $ (278) | $ (152) | |
ASU 2016-02 [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Operating lease right-of-use asset | $ 596 | ||||||
Operating lease liability | 662 | ||||||
ASU 2017-12 [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Fair value of securities transferred from held to maturity | 8,800 | ||||||
Accumulated other comprehensive income (loss) | $ 19 |
New Accounting Standards (Cumul
New Accounting Standards (Cumulative Effect of Changes for the Adoption of ASU 2016-02) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Assets | |||
Other assets | $ 2,634 | $ 2,046 | |
Operating lease right-of-use asset | $ 596 | ||
Liabilities | |||
Accrued expenses and other liabilities | 3,542 | $ 2,954 | |
Operating lease liability | $ 665 | ||
ASU 2016-02 [Member] | |||
Assets | |||
Operating lease right-of-use asset | 596 | ||
Prepaid rent and initial direct costs | 8 | ||
Liabilities | |||
Operating lease liability | 662 | ||
Deferred rent and lease incentives | 74 | ||
ASU 2016-02 [Member] | Adjustments [Member] | |||
Assets | |||
Other assets | 588 | ||
Liabilities | |||
Accrued expenses and other liabilities | $ 588 |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregated Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Interest revenue | $ 1,892 | $ 1,755 | $ 5,817 | $ 4,766 |
Interest expense | (261) | (228) | (896) | (569) |
Net interest revenue | 1,631 | 1,527 | 4,921 | 4,197 |
Other | 83 | 67 | 297 | 235 |
Total net revenues | 2,711 | 2,579 | 8,115 | 7,463 |
Mutual funds, ETFs, and CTFs [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Asset management and administration fees and Trading revenue | 445 | 446 | 1,287 | 1,419 |
Advice solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Asset management and administration fees and Trading revenue | 305 | 294 | 878 | 859 |
Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Asset management and administration fees and Trading revenue | 75 | 69 | 201 | 196 |
Asset management and administration fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Asset management and administration fees and Trading revenue | 825 | 809 | 2,366 | 2,474 |
Commissions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Asset management and administration fees and Trading revenue | 159 | 155 | 477 | 501 |
Principal Transactions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Asset management and administration fees and Trading revenue | 13 | 21 | 54 | 56 |
Trading revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Asset management and administration fees and Trading revenue | $ 172 | $ 176 | $ 531 | $ 557 |
Revenue Recognition (Capitalize
Revenue Recognition (Capitalized Contract Costs and Contract Balances) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Receivables from contracts with customers | $ 338 | $ 307 |
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 | Sep. 30, 2019 | Dec. 31, 2018 |
Available for sale securities: | ||
Amortized Cost | $ 56,149 | $ 66,735 |
Gross Unrealized Gains | 399 | 72 |
Gross Unrealized Losses | 65 | 229 |
Fair Value | 56,483 | 66,578 |
Held to maturity securities: | ||
Amortized Cost | 140,194 | 144,009 |
Gross Unrealized Gains | 2,247 | 330 |
Gross Unrealized Losses | 278 | 2,301 |
Fair Value | 142,163 | 142,038 |
U.S. agency mortgage-backed securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 40,179 | 25,594 |
Gross Unrealized Gains | 299 | 44 |
Gross Unrealized Losses | 47 | 82 |
Fair Value | 40,431 | 25,556 |
Held to maturity securities: | ||
Amortized Cost | 114,276 | 118,064 |
Gross Unrealized Gains | 1,974 | 217 |
Gross Unrealized Losses | 238 | 2,188 |
Fair Value | 116,012 | 116,093 |
U.S. Treasury securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 5,034 | 18,410 |
Gross Unrealized Gains | 3 | 0 |
Gross Unrealized Losses | 10 | 108 |
Fair Value | 5,027 | 18,302 |
Held to maturity securities: | ||
Amortized Cost | 224 | 223 |
Gross Unrealized Gains | 6 | 0 |
Gross Unrealized Losses | 0 | 6 |
Fair Value | 230 | 217 |
Asset-backed securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 4,773 | 10,086 |
Gross Unrealized Gains | 35 | 14 |
Gross Unrealized Losses | 7 | 15 |
Fair Value | 4,801 | 10,085 |
Held to maturity securities: | ||
Amortized Cost | 18,323 | 18,502 |
Gross Unrealized Gains | 74 | 83 |
Gross Unrealized Losses | 38 | 39 |
Fair Value | 18,359 | 18,546 |
Corporate debt securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 4,630 | 7,477 |
Gross Unrealized Gains | 57 | 10 |
Gross Unrealized Losses | 1 | 20 |
Fair Value | 4,686 | 7,467 |
Held to maturity securities: | ||
Amortized Cost | 4,659 | 4,477 |
Gross Unrealized Gains | 58 | 2 |
Gross Unrealized Losses | 2 | 47 |
Fair Value | 4,715 | 4,432 |
Certificates of deposit [Member] | ||
Available for sale securities: | ||
Amortized Cost | 1,000 | 3,682 |
Gross Unrealized Gains | 4 | 4 |
Gross Unrealized Losses | 0 | 1 |
Fair Value | 1,004 | 3,685 |
Held to maturity securities: | ||
Amortized Cost | 200 | 200 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 200 | 201 |
U.S. agency notes [Member] | ||
Available for sale securities: | ||
Amortized Cost | 900 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 2 | |
Fair Value | 898 | |
U.S. state and municipal securities [Member] | ||
Held to maturity securities: | ||
Amortized Cost | 1,306 | 1,327 |
Gross Unrealized Gains | 107 | 24 |
Gross Unrealized Losses | 0 | 3 |
Fair Value | 1,413 | 1,348 |
Commercial paper [Member] | ||
Available for sale securities: | ||
Amortized Cost | 520 | 522 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 521 | 522 |
Available-for-sale securities, current | 900 | 4,900 |
Foreign government agency securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 50 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 1 | |
Fair Value | 49 | |
Held to maturity securities: | ||
Amortized Cost | 50 | 50 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 1 |
Fair Value | 50 | 49 |
Non-agency commercial mortgage-backed securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 13 | 14 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 13 | 14 |
Held to maturity securities: | ||
Amortized Cost | 1,136 | 1,156 |
Gross Unrealized Gains | 28 | 3 |
Gross Unrealized Losses | 0 | 17 |
Fair Value | 1,164 | 1,142 |
Other [Member] | ||
Held to maturity securities: | ||
Amortized Cost | 20 | 10 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 20 | $ 10 |
Federal Family Education Loan Program (FFELP) Guaranteed Loans [Member] | ||
Held to maturity securities: | ||
Asset-backed securities percentage | 43.00% | 36.00% |
Collateralized Credit Card Securities [Member] | ||
Held to maturity securities: | ||
Asset-backed securities percentage | 42.00% | 42.00% |
Corporate debt securities issued by financial services industry [Member] | ||
Held to maturity securities: | ||
AFS and HTM securities percentage | 35.00% | 26.00% |
Corporate debt securities, information technology [Member] | ||
Held to maturity securities: | ||
AFS and HTM securities percentage | 18.00% | 18.00% |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) - USD ($) | Jan. 01, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
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 | 918,000,000 | ||
Federal Reserve Bank Advances [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Fair value of pledged securities | 8,300,000,000 | ||
Federal Home Loan Bank of San Francisco [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Fair value of pledged securities | $ 26,800,000,000 | ||
ASU 2017-12 [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Fair value of securities transferred from held to maturity | $ 8,800,000,000 |
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 | Sep. 30, 2019USD ($)security | Dec. 31, 2018USD ($)security |
Available for sale securities: | ||
Less than 12 months Fair Value | $ 13,352 | $ 23,503 |
Less than 12 months Unrealized Losses | 26 | 67 |
12 months or longer Fair Value | 10,375 | 12,888 |
12 months or longer Unrealized Losses | 39 | 162 |
Total Fair Value | 23,727 | 36,391 |
Total Unrealized Losses | 65 | 229 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 19,892 | 39,327 |
Less than 12 months Unrealized Losses | 72 | 290 |
12 months or longer Fair Value | 21,807 | 58,794 |
12 months or longer Unrealized Losses | 206 | 2,011 |
Total Fair Value | 41,699 | 98,121 |
Total Unrealized Losses | 278 | 2,301 |
Total securities with unrealized losses | ||
Less than 12 months Fair Value | 33,244 | 62,830 |
Less than 12 months Unrealized Losses | 98 | 357 |
12 months or longer Fair Value | 32,182 | 71,682 |
12 months or longer Unrealized Losses | 245 | 2,173 |
Total Fair Value | 65,426 | 134,512 |
Total Unrealized Losses | $ 343 | $ 2,530 |
Number of available for sale securities in unrealized loss positions | security | 343 | 441 |
Number of held to maturity securities in unrealized loss positions | security | 625 | 1,524 |
U.S. agency mortgage-backed securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | $ 12,063 | $ 9,529 |
Less than 12 months Unrealized Losses | 24 | 32 |
12 months or longer Fair Value | 6,317 | 4,257 |
12 months or longer Unrealized Losses | 23 | 50 |
Total Fair Value | 18,380 | 13,786 |
Total Unrealized Losses | 47 | 82 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 11,838 | 29,263 |
Less than 12 months Unrealized Losses | 37 | 222 |
12 months or longer Fair Value | 20,897 | 56,435 |
12 months or longer Unrealized Losses | 201 | 1,966 |
Total Fair Value | 32,735 | 85,698 |
Total Unrealized Losses | 238 | 2,188 |
U.S. Treasury securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 377 | 4,951 |
Less than 12 months Unrealized Losses | 0 | 6 |
12 months or longer Fair Value | 3,161 | 7,037 |
12 months or longer Unrealized Losses | 10 | 102 |
Total Fair Value | 3,538 | 11,988 |
Total Unrealized Losses | 10 | 108 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 0 | |
Less than 12 months Unrealized Losses | 0 | |
12 months or longer Fair Value | 218 | |
12 months or longer Unrealized Losses | 6 | |
Total Fair Value | 218 | |
Total Unrealized Losses | 6 | |
Asset-backed securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 763 | 4,050 |
Less than 12 months Unrealized Losses | 1 | 9 |
12 months or longer Fair Value | 398 | 837 |
12 months or longer Unrealized Losses | 6 | 6 |
Total Fair Value | 1,161 | 4,887 |
Total Unrealized Losses | 7 | 15 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 7,638 | 6,795 |
Less than 12 months Unrealized Losses | 34 | 35 |
12 months or longer Fair Value | 556 | 376 |
12 months or longer Unrealized Losses | 4 | 4 |
Total Fair Value | 8,194 | 7,171 |
Total Unrealized Losses | 38 | 39 |
Corporate debt securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 149 | 3,561 |
Less than 12 months Unrealized Losses | 1 | 19 |
12 months or longer Fair Value | 499 | 254 |
12 months or longer Unrealized Losses | 0 | 1 |
Total Fair Value | 648 | 3,815 |
Total Unrealized Losses | 1 | 20 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 416 | 2,909 |
Less than 12 months Unrealized Losses | 1 | 29 |
12 months or longer Fair Value | 354 | 1,066 |
12 months or longer Unrealized Losses | 1 | 18 |
Total Fair Value | 770 | 3,975 |
Total Unrealized Losses | $ 2 | 47 |
U.S. state and municipal securities [Member] | ||
Held to maturity securities: | ||
Less than 12 months Fair Value | 77 | |
Less than 12 months Unrealized Losses | 2 | |
12 months or longer Fair Value | 18 | |
12 months or longer Unrealized Losses | 1 | |
Total Fair Value | 95 | |
Total Unrealized Losses | 3 | |
Certificates of deposit [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 1,217 | |
Less than 12 months Unrealized Losses | 1 | |
12 months or longer Fair Value | 150 | |
12 months or longer Unrealized Losses | 0 | |
Total Fair Value | 1,367 | |
Total Unrealized Losses | 1 | |
Non-agency commercial mortgage-backed securities [Member] | ||
Held to maturity securities: | ||
Less than 12 months Fair Value | 283 | |
Less than 12 months Unrealized Losses | 2 | |
12 months or longer Fair Value | 632 | |
12 months or longer Unrealized Losses | 15 | |
Total Fair Value | 915 | |
Total Unrealized Losses | 17 | |
U.S. agency notes [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 195 | |
Less than 12 months Unrealized Losses | 0 | |
12 months or longer Fair Value | 304 | |
12 months or longer Unrealized Losses | 2 | |
Total Fair Value | 499 | |
Total Unrealized Losses | 2 | |
Foreign government agency securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 0 | |
Less than 12 months Unrealized Losses | 0 | |
12 months or longer Fair Value | 49 | |
12 months or longer Unrealized Losses | 1 | |
Total Fair Value | 49 | |
Total Unrealized Losses | 1 | |
Held to maturity securities: | ||
Less than 12 months Fair Value | 0 | |
Less than 12 months Unrealized Losses | 0 | |
12 months or longer Fair Value | 49 | |
12 months or longer Unrealized Losses | 1 | |
Total Fair Value | 49 | |
Total Unrealized Losses | $ 1 |
Investment Securities (Maturiti
Investment Securities (Maturities of Securities Available for Sale and Held to Maturity) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Available for sale securities, fair value | ||
Within 1 year | $ 5,749 | |
After 1 year through 5 years | 11,065 | |
After 5 years through 10 years | 12,026 | |
After 10 years | 27,643 | |
Fair Value | 56,483 | $ 66,578 |
Available for sale securities, amortized cost | ||
Within 1 year | 5,743 | |
After 1 year through 5 years | 10,994 | |
After 5 years through 10 years | 11,996 | |
After 10 years | 27,416 | |
Amortized Cost | 56,149 | 66,735 |
Held to maturity securities, fair value | ||
Within 1 year | 1,641 | |
After 1 year through 5 years | 22,294 | |
After 5 years through 10 years | 44,528 | |
After 10 years | 73,700 | |
Fair Value | 142,163 | 142,038 |
Held to maturity securities, amortized cost | ||
Within 1 year | 1,637 | |
After 1 year through 5 years | 21,989 | |
After 5 years through 10 years | 43,368 | |
After 10 years | 73,200 | |
Amortized Cost | 140,194 | 144,009 |
U.S. agency mortgage-backed securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 51 | |
After 1 year through 5 years | 1,909 | |
After 5 years through 10 years | 11,061 | |
After 10 years | 27,410 | |
Fair Value | 40,431 | 25,556 |
Available for sale securities, amortized cost | ||
Amortized Cost | 40,179 | 25,594 |
Held to maturity securities, fair value | ||
Within 1 year | 663 | |
After 1 year through 5 years | 15,472 | |
After 5 years through 10 years | 35,048 | |
After 10 years | 64,829 | |
Fair Value | 116,012 | 116,093 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 114,276 | 118,064 |
U.S. Treasury securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 3,541 | |
After 1 year through 5 years | 1,486 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 5,027 | 18,302 |
Available for sale securities, amortized cost | ||
Amortized Cost | 5,034 | 18,410 |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 230 | |
After 10 years | 0 | |
Fair Value | 230 | 217 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 224 | 223 |
Asset-backed securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 35 | |
After 1 year through 5 years | 3,752 | |
After 5 years through 10 years | 794 | |
After 10 years | 220 | |
Fair Value | 4,801 | 10,085 |
Available for sale securities, amortized cost | ||
Amortized Cost | 4,773 | 10,086 |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 3,227 | |
After 5 years through 10 years | 7,940 | |
After 10 years | 7,192 | |
Fair Value | 18,359 | 18,546 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 18,323 | 18,502 |
Corporate debt securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 1,100 | |
After 1 year through 5 years | 3,415 | |
After 5 years through 10 years | 171 | |
After 10 years | 0 | |
Fair Value | 4,686 | 7,467 |
Available for sale securities, amortized cost | ||
Amortized Cost | 4,630 | 7,477 |
Held to maturity securities, fair value | ||
Within 1 year | 778 | |
After 1 year through 5 years | 3,079 | |
After 5 years through 10 years | 858 | |
After 10 years | 0 | |
Fair Value | 4,715 | 4,432 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 4,659 | 4,477 |
Certificates of deposit [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 501 | |
After 1 year through 5 years | 503 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 1,004 | 3,685 |
Available for sale securities, amortized cost | ||
Amortized Cost | 1,000 | 3,682 |
Held to maturity securities, fair value | ||
Within 1 year | 200 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 200 | 201 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 200 | 200 |
U.S. state and municipal securities [Member] | ||
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 99 | |
After 5 years through 10 years | 452 | |
After 10 years | 862 | |
Fair Value | 1,413 | 1,348 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 1,306 | 1,327 |
Commercial paper [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 521 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 521 | 522 |
Available for sale securities, amortized cost | ||
Amortized Cost | 520 | 522 |
Foreign government agency securities [Member] | ||
Available for sale securities, fair value | ||
Fair Value | 49 | |
Available for sale securities, amortized cost | ||
Amortized Cost | 50 | |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 50 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 50 | 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 | 13 | |
Fair Value | 13 | 14 |
Available for sale securities, amortized cost | ||
Amortized Cost | 13 | 14 |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 367 | |
After 5 years through 10 years | 0 | |
After 10 years | 797 | |
Fair Value | 1,164 | 1,142 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 1,136 | 1,156 |
Other [Member] | ||
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 0 | |
After 10 years | 20 | |
Fair Value | 20 | 10 |
Held to maturity securities, amortized cost | ||
Amortized Cost | $ 20 | $ 10 |
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales of available for sale securities | $ 5,436 | $ 0 | $ 21,710 | $ 115 |
Gross realized gains | 5 | 0 | 15 | 0 |
Gross realized losses | $ 4 | $ 0 | $ 10 | $ 0 |
Bank Loans and Related Allowa_3
Bank Loans and Related Allowance for Loan Losses (Composition of Bank Loans and Delinquency Analysis by Loan Segment) (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Financing Receivable, Past Due [Line Items] | ||||||
Current | $ 16,863,000,000 | $ 16,580,000,000 | ||||
Past due and other nonaccrual loans | 49,000,000 | 50,000,000 | ||||
Total loans | 16,912,000,000 | 16,630,000,000 | ||||
Allowance for loan losses | 17,000,000 | 21,000,000 | $ 19,000,000 | $ 26,000,000 | $ 26,000,000 | $ 26,000,000 |
Total bank loans – net | 16,895,000,000 | 16,609,000,000 | ||||
Loans 90 days past due and still accruing | 0 | 0 | ||||
30-59 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 25,000,000 | 27,000,000 | ||||
60-89 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 3,000,000 | 3,000,000 | ||||
More Than 90 Days Past Due and Other Nonaccrual Loans [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 21,000,000 | 20,000,000 | ||||
First Mortgage [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Current | 10,607,000,000 | 10,349,000,000 | ||||
Past due and other nonaccrual loans | 33,000,000 | 35,000,000 | ||||
Total loans | 10,640,000,000 | 10,384,000,000 | ||||
Allowance for loan losses | 10,000,000 | 14,000,000 | 12,000,000 | 17,000,000 | 17,000,000 | 16,000,000 |
Total bank loans – net | 10,630,000,000 | 10,370,000,000 | ||||
First Mortgage [Member] | 30-59 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 20,000,000 | 21,000,000 | ||||
First Mortgage [Member] | 60-89 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 2,000,000 | 2,000,000 | ||||
First Mortgage [Member] | More Than 90 Days Past Due and Other Nonaccrual Loans [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 11,000,000 | 12,000,000 | ||||
HELOCs [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Current | 1,208,000,000 | 1,493,000,000 | ||||
Past due and other nonaccrual loans | 12,000,000 | 12,000,000 | ||||
Total loans | 1,220,000,000 | 1,505,000,000 | ||||
Allowance for loan losses | 4,000,000 | 5,000,000 | 5,000,000 | 7,000,000 | 7,000,000 | 8,000,000 |
Total bank loans – net | 1,216,000,000 | 1,500,000,000 | ||||
HELOCs [Member] | 30-59 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 3,000,000 | 3,000,000 | ||||
HELOCs [Member] | 60-89 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 1,000,000 | 1,000,000 | ||||
HELOCs [Member] | More Than 90 Days Past Due and Other Nonaccrual Loans [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 8,000,000 | 8,000,000 | ||||
Pledged asset lines [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Current | 4,876,000,000 | 4,558,000,000 | ||||
Past due and other nonaccrual loans | 2,000,000 | 3,000,000 | ||||
Total loans | 4,878,000,000 | 4,561,000,000 | ||||
Allowance for loan losses | 0 | 0 | ||||
Total bank loans – net | 4,878,000,000 | 4,561,000,000 | ||||
Pledged asset lines [Member] | 30-59 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 2,000,000 | 3,000,000 | ||||
Pledged asset lines [Member] | 60-89 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 0 | 0 | ||||
Pledged asset lines [Member] | More Than 90 Days Past Due and Other Nonaccrual Loans [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 0 | 0 | ||||
Other [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Current | 172,000,000 | 180,000,000 | ||||
Past due and other nonaccrual loans | 2,000,000 | 0 | ||||
Total loans | 174,000,000 | 180,000,000 | ||||
Allowance for loan losses | 3,000,000 | 2,000,000 | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 |
Total bank loans – net | 171,000,000 | 178,000,000 | ||||
Other [Member] | 30-59 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 0 | 0 | ||||
Other [Member] | 60-89 Days Past Due [Member] | ||||||
Financing Receivable, 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, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 2,000,000 | 0 | ||||
First Mortgage and HELOC [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Unamortized premiums and discounts and direct origination costs | $ 71,000,000 | $ 73,000,000 | ||||
First Mortgage and HELOC [Member] | Loans, Geographic Area [Member] | California [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Concentration risk percentage | 46.00% | 47.00% |
Bank Loans and Related Allowa_4
Bank Loans and Related Allowance for Loan Losses (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total bank loans | $ 16,912 | $ 16,630 |
First Mortgage and HELOC [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 10,800 | |
Adjustable Rate First Mortgage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Bank loans | $ 9,600 | |
Percent of loans with interest-only payments | 29.00% | |
Percent of interest only adjustable rate | 65.00% | |
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 | $ 1,220 | $ 1,505 |
Percent of loan balance outstanding, borrowers paid only minimum due | 54.00% | |
Home Equity Secured By Second Liens [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total bank loans | $ 1,000 |
Bank Loans and Related Allowa_5
Bank Loans and Related Allowance for Loan Losses (Changes in Allowance for Loan Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | $ 19 | $ 26 | $ 21 | $ 26 |
Charge-offs | 0 | 0 | 0 | (1) |
Recoveries | 0 | 1 | 2 | 2 |
Provision for loan losses | (2) | (1) | (6) | (1) |
Balance at end of period | 17 | 26 | 17 | 26 |
First Mortgage [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 12 | 17 | 14 | 16 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 1 | 0 |
Provision for loan losses | (2) | 0 | (5) | 1 |
Balance at end of period | 10 | 17 | 10 | 17 |
HELOCs [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 5 | 7 | 5 | 8 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 1 | 1 | 2 |
Provision for loan losses | (1) | (1) | (2) | (3) |
Balance at end of period | 4 | 7 | 4 | 7 |
Other [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 2 | 2 | 2 | 2 |
Charge-offs | 0 | 0 | 0 | (1) |
Recoveries | 0 | 0 | 0 | 0 |
Provision for loan losses | 1 | 0 | 1 | 1 |
Balance at end of period | $ 3 | $ 2 | $ 3 | $ 2 |
Bank Loans and Related Allowa_6
Bank Loans and Related Allowance for Loan Losses (Impaired Assets) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings | $ 2 | $ 4 |
Total impaired assets | 25 | 28 |
Nonperforming Financial Instruments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonperforming assets | 23 | 24 |
Nonperforming Financial Instruments [Member] | Nonaccrual Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonperforming assets | 21 | 21 |
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 Allowa_7
Bank Loans and Related Allowance for Loan Losses (Credit Quality Indicators of Bank Loan Portfolio) (Details) $ in Millions | Sep. 30, 2019USD ($)credit_rating | Dec. 31, 2018USD ($)credit_rating |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | $ 16,912 | $ 16,630 |
First Mortgage [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | $ 10,640 | $ 10,384 |
Weighted Average Updated FICO | credit_rating | 776 | 775 |
Percent of Loans on Nonaccrual Status | 0.05% | 0.07% |
First Mortgage [Member] | Origination FICO Score Below 620 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | $ 4 | $ 5 |
First Mortgage [Member] | Origination FICO Score 620 Through 679 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 76 | 83 |
First Mortgage [Member] | Origination FICO Score 680 Through 739 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 1,624 | 1,626 |
First Mortgage [Member] | Origination FICO Score 740 and Above [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 8,936 | 8,670 |
First Mortgage [Member] | Year of origination Pre 2015 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 1,815 | 2,387 |
First Mortgage [Member] | Year of origination 2015 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 889 | 1,050 |
First Mortgage [Member] | Year of origination 2016 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 2,382 | 2,606 |
First Mortgage [Member] | Year of origination 2017 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 2,137 | 2,366 |
First Mortgage [Member] | Year of origination 2018 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 1,611 | 1,975 |
First Mortgage [Member] | Year of origination 2019 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 1,806 | |
First Mortgage [Member] | Estimated Current LTV 70% and Below [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | $ 9,574 | $ 9,396 |
Weighted Average Updated FICO | credit_rating | 776 | 776 |
Percent of Loans on Nonaccrual Status | 0.03% | 0.04% |
First Mortgage [Member] | Estimated Current LTV Greater Than 70% through 90% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | $ 1,061 | $ 985 |
Weighted Average Updated FICO | credit_rating | 770 | 769 |
Percent of Loans on Nonaccrual Status | 0.28% | 0.41% |
First Mortgage [Member] | Estimated Current LTV Greater Than 90% through 100% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | $ 4 | $ 2 |
Weighted Average Updated FICO | credit_rating | 756 | 717 |
Percent of Loans on Nonaccrual Status | 0.00% | 0.00% |
First Mortgage [Member] | Estimated Current LTV Greater Than 100% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | $ 1 | $ 1 |
Weighted Average Updated FICO | credit_rating | 768 | 753 |
Percent of Loans on Nonaccrual Status | 0.00% | 0.00% |
First Mortgage [Member] | Origination Loan to Value Ratio 70% and Below [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | $ 7,980 | $ 7,815 |
First Mortgage [Member] | Origination Loan to Value Ratio Greater Than 70% Through 90% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 2,656 | 2,564 |
First Mortgage [Member] | Origination Loan to Value Ratio Greater Than 90% Through 100% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 4 | 5 |
HELOCs [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | $ 1,220 | $ 1,505 |
Weighted Average Updated FICO | credit_rating | 768 | 769 |
Percent of Loans on Nonaccrual Status | 0.29% | 0.17% |
HELOCs [Member] | Origination FICO Score Below 620 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | $ 0 | $ 0 |
HELOCs [Member] | Origination FICO Score 620 Through 679 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 6 | 8 |
HELOCs [Member] | Origination FICO Score 680 Through 739 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 236 | 282 |
HELOCs [Member] | Origination FICO Score 740 and Above [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 978 | 1,215 |
HELOCs [Member] | Year of origination Pre 2015 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 872 | 1,140 |
HELOCs [Member] | Year of origination 2015 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 85 | 106 |
HELOCs [Member] | Year of origination 2016 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 82 | 95 |
HELOCs [Member] | Year of origination 2017 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 90 | 99 |
HELOCs [Member] | Year of origination 2018 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 67 | 65 |
HELOCs [Member] | Year of origination 2019 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 24 | |
HELOCs [Member] | Estimated Current LTV 70% and Below [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | $ 1,157 | $ 1,416 |
Weighted Average Updated FICO | credit_rating | 769 | 770 |
Percent of Loans on Nonaccrual Status | 0.25% | 0.13% |
HELOCs [Member] | Estimated Current LTV Greater Than 70% through 90% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | $ 58 | $ 80 |
Weighted Average Updated FICO | credit_rating | 751 | 752 |
Percent of Loans on Nonaccrual Status | 0.83% | 0.60% |
HELOCs [Member] | Estimated Current LTV Greater Than 90% through 100% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | $ 3 | $ 6 |
Weighted Average Updated FICO | credit_rating | 716 | 729 |
Percent of Loans on Nonaccrual Status | 5.06% | 3.36% |
HELOCs [Member] | Estimated Current LTV Greater Than 100% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | $ 2 | $ 3 |
Weighted Average Updated FICO | credit_rating | 659 | 702 |
Percent of Loans on Nonaccrual Status | 0.00% | 0.00% |
HELOCs [Member] | Origination Loan to Value Ratio 70% and Below [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | $ 869 | $ 1,064 |
HELOCs [Member] | Origination Loan to Value Ratio Greater Than 70% Through 90% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 346 | 434 |
HELOCs [Member] | Origination Loan to Value Ratio Greater Than 90% Through 100% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 5 | 7 |
Pledged asset lines [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 4,878 | 4,561 |
Pledged asset lines [Member] | Weighted Average Loan to Value Ratio =70% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | $ 4,878 | $ 4,561 |
Weighted Average Updated FICO | credit_rating | 767 | 766 |
Percent of Loans on Nonaccrual Status | 0.00% | 0.00% |
Bank Loans and Related Allowa_8
Bank Loans and Related Allowance for Loan Losses (Convert to Amortizing Loans) (Details) - HELOCs [Member] $ in Millions | Sep. 30, 2019USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Converted to an amortizing loan by period end | $ 551 |
Within 1 year | 52 |
1 year – 3 years | 84 |
3 years – 5 years | 170 |
5 years | 363 |
Total | $ 1,220 |
Variable Interest Entities (Agg
Variable Interest Entities (Aggregate Assets, Liabilities and Maximum Exposure to Loss) (Details) - Variable Interest Entity, Not Primary Beneficiary [Member] - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||
Aggregate assets | $ 589 | $ 408 |
Aggregate liabilities | 298 | 188 |
Maximum exposure to loss | 623 | 462 |
LIHTC Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Aggregate assets | 498 | 338 |
Aggregate liabilities | 298 | 188 |
Maximum exposure to loss | 498 | 338 |
Other CRA Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Aggregate assets | 91 | 70 |
Aggregate liabilities | 0 | 0 |
Maximum exposure to loss | $ 125 | $ 124 |
Bank Deposits (Details)
Bank Deposits (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Interest-bearing deposits: | ||
Deposits swept from brokerage accounts | $ 191,456 | $ 212,311 |
Checking | 12,020 | 12,523 |
Savings and other | 5,146 | 5,827 |
Total interest-bearing deposits | 208,622 | 230,661 |
Non-interest-bearing deposits | 705 | 762 |
Total bank deposits | $ 209,327 | $ 231,423 |
Borrowings (Long-term Debt Incl
Borrowings (Long-term Debt Including Unamortized Debt Discounts and Premiums) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 5.45% | |
Senior Notes | $ 7,481 | $ 6,881 |
Finance lease obligation | 0 | 52 |
Unamortized discount — net | (14) | (15) |
Debt issuance costs | (40) | (40) |
Total long-term debt | $ 7,427 | 6,878 |
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 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.25% | |
Senior Notes | $ 600 | 600 |
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 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.55% | |
Senior Notes | $ 500 | 500 |
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 May 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.85% | |
Senior Notes | $ 750 | 750 |
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 |
Senior Notes [Member] | Senior Notes Due 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 4.00% | |
Senior Notes | $ 600 | 600 |
Senior Notes [Member] | Senior Notes Due May 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.25% | |
Senior Notes | $ 600 | 0 |
Senior Notes [Member] | Floating Rate Senior Notes Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 600 | $ 600 |
Senior Notes [Member] | Floating Rate Senior Notes Due 2021 [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread rate | 0.32% |
Borrowings (Annual Maturities o
Borrowings (Annual Maturities on Long-term Debt Outstanding) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
2019 | $ 0 | |
2020 | 700 | |
2021 | 1,200 | |
2022 | 256 | |
2023 | 800 | |
Thereafter | 4,525 | |
Total maturities | 7,481 | |
Unamortized discount, net | (14) | $ (15) |
Debt issuance costs | (40) | (40) |
Total long-term debt | $ 7,427 | $ 6,878 |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) - Federal Home Loan Bank Advances [Member] - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Line of Credit Facility [Line Items] | ||
FHLB stock | $ 34,000,000 | $ 32,000,000 |
Secured Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, current borrowing capacity | 35,200,000,000 | 35,500,000,000 |
Amounts outstanding | $ 0 | $ 0 |
Leases (Leases) (Details)
Leases (Leases) (Details) $ in Millions | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Operating lease assets | $ 596 |
Operating lease liabilities | $ 665 |
Leases (Lease Cost) (Details)
Leases (Lease Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 34 | $ 100 |
Variable lease cost | $ 8 | $ 25 |
Leases (Lease Term and Discount
Leases (Lease Term and Discount Rate) (Details) | Sep. 30, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term (years) | 7 years 2 months 4 days |
Weighted-average discount rate | 3.47% |
Leases (Maturity of Lease Liabi
Leases (Maturity of Lease Liabilities) (Details) $ in Millions | Sep. 30, 2019USD ($) |
Lessor, Lease, Description [Line Items] | |
2019 | $ 26 |
2020 | 136 |
2021 | 113 |
2022 | 92 |
2023 | 84 |
Thereafter | 309 |
Total lease payments | 760 |
Less: Interest | 95 |
Operating lease liability | 665 |
Lease not yet commenced | $ 41 |
Minimum [Member] | |
Lessor, Lease, Description [Line Items] | |
Lease not yet commenced, term | 5 years |
Maximum [Member] | |
Lessor, Lease, Description [Line Items] | |
Lease not yet commenced, term | 20 years |
Leases (Maturity of Lease Lia_2
Leases (Maturity of Lease Liabilities Before 842) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Operating Leases | |
2019 | $ 131 |
2020 | 125 |
2021 | 101 |
2022 | 79 |
2023 | 72 |
Thereafter | 282 |
Total | 790 |
Subleases | |
2019 | 4 |
2020 | 4 |
2021 | 4 |
2022 | 2 |
2023 | 1 |
Thereafter | 0 |
Total | 15 |
Net | |
2019 | 127 |
2020 | 121 |
2021 | 97 |
2022 | 77 |
2023 | 71 |
Thereafter | 282 |
Total | $ 775 |
Commitments and Contingencies_2
Commitments and Contingencies (Commitments to Extend/Purchase) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Commitments to purchase | $ 13,210 | $ 11,314 | |||
First Mortgage [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Purchased during period | $ 842 | $ 491 | 2,000 | $ 1,600 | |
Commitments to purchase | 1,976 | 268 | |||
HELOCs [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Purchased during period | 52 | $ 104 | 180 | $ 311 | |
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 | $ 11,234 | $ 11,234 | $ 11,046 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) account in Millions | Jul. 25, 2019USD ($)account | Sep. 30, 2019USD ($) |
Loss Contingencies [Line Items] | ||
Aggregate face amount of letter of credit agreements | $ 225,000,000 | |
Number of brokerage and managed portfolio accounts acquired | account | 1,000,000 | |
Client assets acquired | $ 90,000,000,000 | |
Payments to acquire businesses | $ 1,800,000,000 | |
Performance Guarantee [Member] | ||
Loss Contingencies [Line Items] | ||
Liability for guarantees | 0 | |
Margin Requirements [Member] | ||
Loss Contingencies [Line Items] | ||
Funds drawn under LOC's | $ 0 |
Financial Instruments Subject_3
Financial Instruments Subject to Off-Balance Sheet Credit Risk (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
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 | $ 860 | $ 99 |
Financial Instruments Subject_4
Financial Instruments Subject to Off-Balance Sheet Credit Risk (Offsetting Assets and Liabilities) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Resale agreements | ||
Gross Assets | $ 9,707 | $ 7,195 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 9,707 | 7,195 |
Counterparty Offsetting | 0 | 0 |
Collateral | (9,707) | (7,195) |
Net Amount | 0 | 0 |
Securities borrowed | ||
Gross Assets | 877 | 101 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 877 | 101 |
Counterparty Offsetting | (871) | (98) |
Collateral | (6) | (3) |
Net Amount | 0 | 0 |
Total Gross Assets | 10,584 | 7,296 |
Total Assets, Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | 0 |
Total Assets, Net Amounts Presented in the Condensed Consolidated Balance Sheets | 10,584 | 7,296 |
Total Assets, Gross Amounts Not Offset in the Consolidated Balance Sheet, Counterparty Offsetting | (871) | (98) |
Total Assets, Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral | (9,713) | (7,198) |
Total Assets, Net Amount | 0 | 0 |
Securities loaned | ||
Gross Liabilities | 1,471 | 1,184 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 1,471 | 1,184 |
Counterparty Offsetting | (871) | (98) |
Collateral | (489) | (975) |
Net Amount | 111 | 111 |
Total Gross Liabilities | 1,471 | 1,184 |
Total Liabilities, Net Amounts Presented in the Consolidated Balance Sheet | 1,471 | 1,184 |
Total Liabilities, Gross Amounts Not Offset in the Consolidated Balance Sheet, Counterparty Offsetting | (871) | (98) |
Total Liabilities, Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral | (489) | (975) |
Total Liabilities, Net Amount | 111 | 111 |
Offsetting Assets [Line Items] | ||
Fair value of client securities available to be pledged | $ 26,614 | $ 26,628 |
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 | $ 9,900 | $ 7,400 |
Financial Instruments Subject_5
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 | Sep. 30, 2019 | Dec. 31, 2018 |
Securities Financing Transaction [Line Items] | ||
Fair value of client securities available to be pledged | $ 26,614 | $ 26,628 |
Total collateral pledged | 5,005 | 4,581 |
Fulfillment of Requirements with the Options Clearing Corporation [Member] | ||
Securities Financing Transaction [Line Items] | ||
Total collateral pledged | 1,778 | 2,315 |
Fulfillment of Client Short Sales [Member] | ||
Securities Financing Transaction [Line Items] | ||
Total collateral pledged | 2,023 | 1,292 |
Securities Lending to Other Broker-Dealers [Member] | ||
Securities Financing Transaction [Line Items] | ||
Total collateral pledged | 1,204 | 974 |
Fully Paid Client Securities [Member] | ||
Securities Financing Transaction [Line Items] | ||
Total collateral pledged | $ 139 | $ 97 |
Fair Values of Assets and Lia_3
Fair Values of Assets and Liabilities (Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | $ 497 | $ 539 |
Available for sale securities | 56,483 | 66,578 |
Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 521 | 522 |
Certificates of deposit [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 1,004 | 3,685 |
U.S. agency mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 40,431 | 25,556 |
U.S. Treasury securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 5,027 | 18,302 |
Asset-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 4,801 | 10,085 |
Corporate debt securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 4,686 | 7,467 |
U.S. agency notes [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 898 | |
Foreign government agency securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 49 | |
Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 13 | 14 |
Fair Value, Recurring [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 5,116 | 8,292 |
Investments segregated and on deposit for regulatory purposes | 3,556 | 4,671 |
Other securities owned | 497 | 539 |
Available for sale securities | 56,483 | 66,578 |
Total | 65,652 | 80,080 |
Fair Value, Recurring [Member] | Money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 4,193 | 3,429 |
Fair Value, Recurring [Member] | Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 923 | 4,863 |
Available for sale securities | 521 | 522 |
Fair Value, Recurring [Member] | Certificates of deposit [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 1,951 | 1,396 |
Available for sale securities | 1,004 | 3,685 |
Fair Value, Recurring [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 | 1,605 | 3,275 |
Fair Value, Recurring [Member] | Equity and bond mutual funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 378 | 441 |
Fair Value, Recurring [Member] | State and municipal debt obligations [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 32 | 39 |
Fair Value, Recurring [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 | 77 | 33 |
Fair Value, Recurring [Member] | Schwab Funds money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 10 | 26 |
Fair Value, Recurring [Member] | U.S. agency mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 40,431 | 25,556 |
Fair Value, Recurring [Member] | U.S. Treasury securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 5,027 | 18,302 |
Fair Value, Recurring [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 4,801 | 10,085 |
Fair Value, Recurring [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 4,686 | 7,467 |
Fair Value, Recurring [Member] | U.S. agency notes [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 898 | |
Fair Value, Recurring [Member] | Foreign government agency securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 49 | |
Fair Value, Recurring [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 13 | 14 |
Fair Value, Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 4,193 | 3,429 |
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Other securities owned | 391 | 470 |
Available for sale securities | 0 | 0 |
Total | 4,584 | 3,899 |
Fair Value, Recurring [Member] | Level 1 [Member] | Money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 4,193 | 3,429 |
Fair Value, Recurring [Member] | Level 1 [Member] | Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Available for sale securities | 0 | 0 |
Fair Value, Recurring [Member] | 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, Recurring [Member] | 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, Recurring [Member] | Level 1 [Member] | Equity and bond mutual funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 378 | 441 |
Fair Value, Recurring [Member] | 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, Recurring [Member] | 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 | 3 | 3 |
Fair Value, Recurring [Member] | Level 1 [Member] | Schwab Funds money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 10 | 26 |
Fair Value, Recurring [Member] | 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, Recurring [Member] | 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, Recurring [Member] | 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, Recurring [Member] | 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, Recurring [Member] | Level 1 [Member] | U.S. agency notes [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | |
Fair Value, Recurring [Member] | Level 1 [Member] | Foreign government agency securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | |
Fair Value, Recurring [Member] | 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, Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 923 | 4,863 |
Investments segregated and on deposit for regulatory purposes | 3,556 | 4,671 |
Other securities owned | 106 | 69 |
Available for sale securities | 56,483 | 66,578 |
Total | 61,068 | 76,181 |
Fair Value, Recurring [Member] | Level 2 [Member] | Money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Fair Value, Recurring [Member] | Level 2 [Member] | Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 923 | 4,863 |
Available for sale securities | 521 | 522 |
Fair Value, Recurring [Member] | 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 | 1,951 | 1,396 |
Available for sale securities | 1,004 | 3,685 |
Fair Value, Recurring [Member] | 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 | 1,605 | 3,275 |
Fair Value, Recurring [Member] | 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, Recurring [Member] | Level 2 [Member] | State and municipal debt obligations [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 32 | 39 |
Fair Value, Recurring [Member] | 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 | 74 | 30 |
Fair Value, Recurring [Member] | 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, Recurring [Member] | 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 | 40,431 | 25,556 |
Fair Value, Recurring [Member] | Level 2 [Member] | U.S. Treasury securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 5,027 | 18,302 |
Fair Value, Recurring [Member] | Level 2 [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 4,801 | 10,085 |
Fair Value, Recurring [Member] | Level 2 [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 4,686 | 7,467 |
Fair Value, Recurring [Member] | Level 2 [Member] | U.S. agency notes [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 898 | |
Fair Value, Recurring [Member] | Level 2 [Member] | Foreign government agency securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 49 | |
Fair Value, Recurring [Member] | 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 | 13 | 14 |
Fair Value, Recurring [Member] | 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, Recurring [Member] | Level 3 [Member] | Money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Fair Value, Recurring [Member] | Level 3 [Member] | Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Available for sale securities | 0 | 0 |
Fair Value, Recurring [Member] | 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, Recurring [Member] | 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, Recurring [Member] | 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, Recurring [Member] | 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, Recurring [Member] | 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, Recurring [Member] | 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, Recurring [Member] | 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, Recurring [Member] | 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, Recurring [Member] | 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, Recurring [Member] | 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, Recurring [Member] | Level 3 [Member] | U.S. agency notes [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | |
Fair Value, Recurring [Member] | Level 3 [Member] | Foreign government agency securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | |
Fair Value, Recurring [Member] | 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 Lia_4
Fair Values of Assets and Liabilities (Fair Value of Other Financial Instruments) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Held to maturity securities | $ 142,163 | $ 142,038 |
U.S. agency mortgage-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 116,012 | 116,093 |
Asset-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 18,359 | 18,546 |
Corporate debt securities [Member] | ||
Assets | ||
Held to maturity securities | 4,715 | 4,432 |
U.S. state and municipal securities [Member] | ||
Assets | ||
Held to maturity securities | 1,413 | 1,348 |
Non-agency commercial mortgage-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 1,164 | 1,142 |
U.S. Treasury securities [Member] | ||
Assets | ||
Held to maturity securities | 230 | 217 |
Certificates of deposit [Member] | ||
Assets | ||
Held to maturity securities | 200 | 201 |
Foreign government agency securities [Member] | ||
Assets | ||
Held to maturity securities | 50 | 49 |
Carrying Amount [Member] | ||
Assets | ||
Cash and cash equivalents | 15,136 | 19,646 |
Cash and investments segregated and on deposit for regulatory purposes | 12,595 | 8,886 |
Receivables from brokers, dealers, and clearing organizations | 1,317 | 553 |
Receivables from brokerage clients — net | 21,061 | 21,641 |
Held to maturity securities | 140,194 | 144,009 |
Bank loans – net | 16,895 | 16,609 |
Other assets | 617 | 460 |
Total | 207,815 | 211,804 |
Liabilities | ||
Bank deposits | 209,327 | 231,423 |
Payables to brokers, dealers, and clearing organizations | 1,736 | 1,831 |
Payables to brokerage clients | 35,622 | 32,726 |
Accrued expenses and other liabilities | 1,252 | 1,370 |
Long-term debt | 7,427 | 6,878 |
Total | 255,364 | 274,228 |
Carrying Amount [Member] | First Mortgage [Member] | ||
Assets | ||
Bank loans – net | 10,630 | 10,370 |
Carrying Amount [Member] | HELOCs [Member] | ||
Assets | ||
Bank loans – net | 1,216 | 1,500 |
Carrying Amount [Member] | Pledged asset lines [Member] | ||
Assets | ||
Bank loans – net | 4,878 | 4,561 |
Carrying Amount [Member] | Other [Member] | ||
Assets | ||
Bank loans – net | 171 | 178 |
Carrying Amount [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 114,276 | 118,064 |
Carrying Amount [Member] | Asset-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 18,323 | 18,502 |
Carrying Amount [Member] | Corporate debt securities [Member] | ||
Assets | ||
Held to maturity securities | 4,659 | 4,477 |
Carrying Amount [Member] | U.S. state and municipal securities [Member] | ||
Assets | ||
Held to maturity securities | 1,306 | 1,327 |
Carrying Amount [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 1,136 | 1,156 |
Carrying Amount [Member] | U.S. Treasury securities [Member] | ||
Assets | ||
Held to maturity securities | 224 | 223 |
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] | Other [Member] | ||
Assets | ||
Held to maturity securities | 20 | 10 |
Portion at Other than Fair Value Measurement [Member] | ||
Assets | ||
Cash and cash equivalents | 15,136 | 19,646 |
Cash and investments segregated and on deposit for regulatory purposes | 12,595 | 8,886 |
Receivables from brokers, dealers, and clearing organizations | 1,317 | 553 |
Receivables from brokerage clients — net | 21,061 | 21,641 |
Held to maturity securities | 142,163 | 142,038 |
Bank loans – net | 16,986 | 16,515 |
Other assets | 617 | 460 |
Total | 209,875 | 209,739 |
Liabilities | ||
Bank deposits | 209,327 | 231,423 |
Payables to brokers, dealers, and clearing organizations | 1,736 | 1,831 |
Payables to brokerage clients | 35,622 | 32,726 |
Accrued expenses and other liabilities | 1,252 | 1,370 |
Long-term debt | 7,771 | 6,827 |
Total | 255,708 | 274,177 |
Portion at Other than Fair Value Measurement [Member] | First Mortgage [Member] | ||
Assets | ||
Bank loans – net | 10,682 | 10,193 |
Portion at Other than Fair Value Measurement [Member] | HELOCs [Member] | ||
Assets | ||
Bank loans – net | 1,255 | 1,583 |
Portion at Other than Fair Value Measurement [Member] | Pledged asset lines [Member] | ||
Assets | ||
Bank loans – net | 4,878 | 4,561 |
Portion at Other than Fair Value Measurement [Member] | Other [Member] | ||
Assets | ||
Bank loans – net | 171 | 178 |
Portion at Other than Fair Value Measurement [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 116,012 | 116,093 |
Portion at Other than Fair Value Measurement [Member] | Asset-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 18,359 | 18,546 |
Portion at Other than Fair Value Measurement [Member] | Corporate debt securities [Member] | ||
Assets | ||
Held to maturity securities | 4,715 | 4,432 |
Portion at Other than Fair Value Measurement [Member] | U.S. state and municipal securities [Member] | ||
Assets | ||
Held to maturity securities | 1,413 | 1,348 |
Portion at Other than Fair Value Measurement [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 1,164 | 1,142 |
Portion at Other than Fair Value Measurement [Member] | U.S. Treasury securities [Member] | ||
Assets | ||
Held to maturity securities | 230 | 217 |
Portion at Other than Fair Value Measurement [Member] | Certificates of deposit [Member] | ||
Assets | ||
Held to maturity securities | 200 | 201 |
Portion at Other than Fair Value Measurement [Member] | Foreign government agency securities [Member] | ||
Assets | ||
Held to maturity securities | 50 | 49 |
Portion at Other than Fair Value Measurement [Member] | Other [Member] | ||
Assets | ||
Held to maturity securities | 20 | 10 |
Portion at Other than Fair Value Measurement [Member] | 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 |
Long-term debt | 0 | 0 |
Total | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | First Mortgage [Member] | ||
Assets | ||
Bank loans – net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | HELOCs [Member] | ||
Assets | ||
Bank loans – net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | Pledged asset lines [Member] | ||
Assets | ||
Bank loans – net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | Other [Member] | ||
Assets | ||
Bank loans – net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | 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] | Level 1 [Member] | Asset-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | Corporate debt securities [Member] | ||
Assets | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | 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] | 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] | Level 1 [Member] | U.S. Treasury securities [Member] | ||
Assets | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | Certificates of deposit [Member] | ||
Assets | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | Foreign government agency securities [Member] | ||
Assets | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | Other [Member] | ||
Assets | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | ||
Assets | ||
Cash and cash equivalents | 15,136 | 19,646 |
Cash and investments segregated and on deposit for regulatory purposes | 12,595 | 8,886 |
Receivables from brokers, dealers, and clearing organizations | 1,317 | 553 |
Receivables from brokerage clients — net | 21,061 | 21,641 |
Held to maturity securities | 142,163 | 142,038 |
Bank loans – net | 16,986 | 16,515 |
Other assets | 617 | 460 |
Total | 209,875 | 209,739 |
Liabilities | ||
Bank deposits | 209,327 | 231,423 |
Payables to brokers, dealers, and clearing organizations | 1,736 | 1,831 |
Payables to brokerage clients | 35,622 | 32,726 |
Accrued expenses and other liabilities | 1,252 | 1,370 |
Long-term debt | 7,771 | 6,827 |
Total | 255,708 | 274,177 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | First Mortgage [Member] | ||
Assets | ||
Bank loans – net | 10,682 | 10,193 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | HELOCs [Member] | ||
Assets | ||
Bank loans – net | 1,255 | 1,583 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | Pledged asset lines [Member] | ||
Assets | ||
Bank loans – net | 4,878 | 4,561 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | Other [Member] | ||
Assets | ||
Bank loans – net | 171 | 178 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 116,012 | 116,093 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | Asset-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 18,359 | 18,546 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | Corporate debt securities [Member] | ||
Assets | ||
Held to maturity securities | 4,715 | 4,432 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | U.S. state and municipal securities [Member] | ||
Assets | ||
Held to maturity securities | 1,413 | 1,348 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 1,164 | 1,142 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | U.S. Treasury securities [Member] | ||
Assets | ||
Held to maturity securities | 230 | 217 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | Certificates of deposit [Member] | ||
Assets | ||
Held to maturity securities | 200 | 201 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | Foreign government agency securities [Member] | ||
Assets | ||
Held to maturity securities | 50 | 49 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | Other [Member] | ||
Assets | ||
Held to maturity securities | 20 | 10 |
Portion at Other than Fair Value Measurement [Member] | 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 |
Long-term debt | 0 | 0 |
Total | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | First Mortgage [Member] | ||
Assets | ||
Bank loans – net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | HELOCs [Member] | ||
Assets | ||
Bank loans – net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | Pledged asset lines [Member] | ||
Assets | ||
Bank loans – net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | Other [Member] | ||
Assets | ||
Bank loans – net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | 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] | Level 3 [Member] | Asset-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | Corporate debt securities [Member] | ||
Assets | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | 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] | 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] | Level 3 [Member] | U.S. Treasury securities [Member] | ||
Assets | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | Certificates of deposit [Member] | ||
Assets | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | Foreign government agency securities [Member] | ||
Assets | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | Other [Member] | ||
Assets | ||
Held to maturity securities | $ 0 | $ 0 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) shares in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Jan. 30, 2019 | |
Class of Stock [Line Items] | |||
Shares repurchased | $ 771,000,000 | $ 1,991,000,000 | |
Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Share repurchase, authorized amount | $ 4,000,000,000 | ||
Shares repurchased (in shares) | 20 | 49 | |
Shares repurchased | $ 771,000,000 | $ 2,000,000,000 |
Stockholders' Equity (Preferred
Stockholders' Equity (Preferred Stock Issued and Outstanding) (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
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% |
Stockholders' Equity (Dividends
Stockholders' Equity (Dividends Declared) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Class of Stock [Line Items] | ||||
Dividends declared | $ 34 | $ 34 | $ 115 | $ 117 |
Series A Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Dividends declared | $ 0 | $ 0 | $ 14 | $ 14 |
Dividends declared, per share amount (USD per share) | $ 0 | $ 0 | $ 35 | $ 35 |
Series C Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Dividends declared | $ 9 | $ 9 | $ 27 | $ 27 |
Dividends declared, per share amount (USD per share) | $ 15 | $ 15 | $ 45 | $ 45 |
Series D Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Dividends declared | $ 11 | $ 11 | $ 33 | $ 33 |
Dividends declared, per share amount (USD per share) | $ 14.88 | $ 14.88 | $ 44.64 | $ 44.64 |
Series E Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Dividends declared | $ 14 | $ 14 | $ 28 | $ 28 |
Dividends declared, per share amount (USD per share) | $ 2,312.50 | $ 2,312.50 | $ 4,625 | $ 4,625 |
Series F Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Dividends declared | $ 0 | $ 0 | $ 13 | $ 15 |
Dividends declared, per share amount (USD per share) | $ 0 | $ 0 | $ 2,500 | $ 2,930.56 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Components of Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other comprehensive income (loss) before tax | ||||
Net unrealized gain (loss) | $ 51 | $ (43) | $ 496 | $ (184) |
Other reclassifications included in other revenue | (1) | 0 | (5) | 0 |
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale | 10 | 8 | 30 | 26 |
Other comprehensive income (loss), before tax | 60 | (35) | 521 | (158) |
Tax Effect | ||||
Net unrealized gain (loss) | (12) | 11 | (119) | 45 |
Other reclassifications included in other revenue | 0 | 0 | 1 | 0 |
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale | (3) | (2) | (7) | (6) |
Other comprehensive income (loss) | (15) | 9 | (125) | 39 |
Net of Tax | ||||
Net unrealized gain (loss) | 39 | (32) | 377 | (139) |
Other reclassifications included in other revenue | (1) | 0 | (4) | 0 |
Amortization of amounts previously recorded upon transfer from available for sale | 7 | 6 | 23 | 20 |
Other comprehensive income (loss), net of tax | $ 45 | $ (26) | $ 396 | $ (119) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Accumulated Other Comprehensive Income Balances) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accumulated Other Comprehensive Income | ||||
Beginning Balance | $ 99 | $ (278) | $ (252) | $ (152) |
Other net changes | 45 | (26) | 396 | (119) |
Ending Balance | 144 | (304) | 144 | (304) |
Adoption of accounting standards [Member] | ASU 2018-02 [Member] | ||||
Accumulated Other Comprehensive Income | ||||
Other net changes | (33) | |||
Net unrealized gain (loss) on available for sale securities [Member] | ||||
Accumulated Other Comprehensive Income | ||||
Other net changes | 39 | (32) | 358 | (139) |
Net unrealized gain on securities transferred to available for sale from held to maturity [Member] | ||||
Accumulated Other Comprehensive Income | ||||
Other net changes | 19 | |||
Other reclassifications included in other revenue [Member] | ||||
Accumulated Other Comprehensive Income | ||||
Other net changes | (1) | (4) | ||
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale [Member] | ||||
Accumulated Other Comprehensive Income | ||||
Other net changes | $ 7 | $ 6 | $ 23 | $ 20 |
Regulatory Requirements (Regula
Regulatory Requirements (Regulatory Capital and Ratios) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
CSC [Member] | ||
Common Equity Tier 1 Risk-Based Capital | ||
Actual Amount | $ 17,264 | $ 16,813 |
Actual Ratio | 20.00% | 17.60% |
Minimum Capital Requirement Amount | $ 3,877 | $ 4,295 |
Minimum Capital Requirement Ratio | 4.50% | 4.50% |
Tier 1 Risk-Based Capital | ||
Actual Amount | $ 20,057 | $ 19,606 |
Actual Ratio | 23.30% | 20.50% |
Minimum Capital Requirement Amount | $ 5,170 | $ 5,726 |
Minimum Capital Requirement Ratio | 6.00% | 6.00% |
Total Risk-Based Capital | ||
Actual Amount | $ 20,075 | $ 19,628 |
Actual Ratio | 23.30% | 20.60% |
Minimum Capital Requirement Amount | $ 6,893 | $ 7,635 |
Minimum Capital Requirement Ratio | 8.00% | 8.00% |
Tier 1 Leverage | ||
Actual Amount | $ 20,057 | $ 19,606 |
Actual Ratio | 7.30% | 7.10% |
Minimum Capital Requirement Amount | $ 10,945 | $ 11,058 |
Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Supplemental Leverage Ratio | ||
Actual Amount | $ 20,057 | |
Actual Ratio | 7.10% | |
Minimum Capital Requirement Amount | $ 8,418 | |
Minimum Capital Requirement Ratio | 3.00% | |
CSB [Member] | ||
Common Equity Tier 1 Risk-Based Capital | ||
Actual Amount | $ 15,577 | $ 15,832 |
Actual Ratio | 22.90% | 19.70% |
Minimum to be Well Capitalized Amount | $ 4,430 | $ 5,233 |
Minimum to be Well Capitalized Ratio | 6.50% | 6.50% |
Minimum Capital Requirement Amount | $ 3,067 | $ 3,623 |
Minimum Capital Requirement Ratio | 4.50% | 4.50% |
Tier 1 Risk-Based Capital | ||
Actual Amount | $ 15,577 | $ 15,832 |
Actual Ratio | 22.90% | 19.70% |
Minimum to be Well Capitalized Amount | $ 5,452 | $ 6,441 |
Minimum to be Well Capitalized Ratio | 8.00% | 8.00% |
Minimum Capital Requirement Amount | $ 4,089 | $ 4,831 |
Minimum Capital Requirement Ratio | 6.00% | 6.00% |
Total Risk-Based Capital | ||
Actual Amount | $ 15,594 | $ 15,853 |
Actual Ratio | 22.90% | 19.70% |
Minimum to be Well Capitalized Amount | $ 6,815 | $ 8,051 |
Minimum to be Well Capitalized Ratio | 10.00% | 10.00% |
Minimum Capital Requirement Amount | $ 5,452 | $ 6,441 |
Minimum Capital Requirement Ratio | 8.00% | 8.00% |
Tier 1 Leverage | ||
Actual Amount | $ 15,577 | $ 15,832 |
Actual Ratio | 7.40% | 7.20% |
Minimum to be Well Capitalized Amount | $ 10,537 | $ 11,044 |
Minimum to be Well Capitalized Ratio | 5.00% | 5.00% |
Minimum Capital Requirement Amount | $ 8,429 | $ 8,836 |
Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Supplemental Leverage Ratio | ||
Actual Amount | $ 15,577 | |
Actual Ratio | 7.20% | |
Minimum Capital Requirement Amount | $ 6,524 | |
Minimum Capital Requirement Ratio | 3.00% |
Regulatory Requirements (Narrat
Regulatory Requirements (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total assets | $ 278,987 | $ 296,482 |
Charles Schwab Premier Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total assets | $ 13,500 |
Regulatory Requirements (Net Ca
Regulatory Requirements (Net Capital and Net Capital Requirements) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
Net Capital | $ 2,235,000 | $ 2,304,000 |
Minimum net capital required | 250 | 250 |
2% of aggregate debit balances | 440,000 | 436,000 |
Net Capital in excess of required net capital | $ 1,795,000 | $ 1,868,000 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2019segment | |
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net Revenues | ||||
Net interest revenue | $ 1,631 | $ 1,527 | $ 4,921 | $ 4,197 |
Other | 83 | 67 | 297 | 235 |
Total net revenues | 2,711 | 2,579 | 8,115 | 7,463 |
Expenses Excluding Interest | 1,475 | 1,360 | 4,379 | 4,111 |
Income before taxes on income | 1,236 | 1,219 | 3,736 | 3,352 |
Asset management and administration fees [Member] | ||||
Net Revenues | ||||
Asset management and administration fees and Trading revenue | 825 | 809 | 2,366 | 2,474 |
Trading revenue [Member] | ||||
Net Revenues | ||||
Asset management and administration fees and Trading revenue | 172 | 176 | 531 | 557 |
Investor Services [Member] | ||||
Net Revenues | ||||
Net interest revenue | 1,182 | 1,138 | 3,531 | 3,158 |
Other | 68 | 53 | 207 | 182 |
Total net revenues | 1,944 | 1,868 | 5,746 | 5,421 |
Expenses Excluding Interest | 1,070 | 1,015 | 3,189 | 3,069 |
Income before taxes on income | 874 | 853 | 2,557 | 2,352 |
Investor Services [Member] | Asset management and administration fees [Member] | ||||
Net Revenues | ||||
Asset management and administration fees and Trading revenue | 586 | 565 | 1,679 | 1,727 |
Investor Services [Member] | Trading revenue [Member] | ||||
Net Revenues | ||||
Asset management and administration fees and Trading revenue | 108 | 112 | 329 | 354 |
Advisor Services [Member] | ||||
Net Revenues | ||||
Net interest revenue | 449 | 389 | 1,390 | 1,039 |
Other | 15 | 14 | 90 | 53 |
Total net revenues | 767 | 711 | 2,369 | 2,042 |
Expenses Excluding Interest | 405 | 345 | 1,190 | 1,042 |
Income before taxes on income | 362 | 366 | 1,179 | 1,000 |
Advisor Services [Member] | Asset management and administration fees [Member] | ||||
Net Revenues | ||||
Asset management and administration fees and Trading revenue | 239 | 244 | 687 | 747 |
Advisor Services [Member] | Trading revenue [Member] | ||||
Net Revenues | ||||
Asset management and administration fees and Trading revenue | $ 64 | $ 64 | $ 202 | $ 203 |