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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Charles Schwab Corporation | NYSE:SCHW | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
1.16 | 1.54% | 76.49 | 76.47 | 75.17 | 76.08 | 5,374,862 | 01:00:00 |
☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 94-3025021 | ||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock – $.01 par value per share | SCHW | New York Stock Exchange | ||||||
Depositary Shares, each representing a 1/40th ownership interest in a share of 5.95% Non-Cumulative Preferred Stock, Series D | SCHW PrD | New York Stock Exchange | ||||||
Depositary Shares, each representing a 1/40th ownership interest in a share of 4.450% Non-Cumulative Preferred Stock, Series J | SCHW PrJ | New York Stock Exchange |
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25-26 | ||||||||||||||
27-57 | ||||||||||||||
Item 2. | 1-19 | |||||||||||||
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Three Months Ended March 31, | Percent Change | ||||||||||||||||
2022 | 2021 | ||||||||||||||||
Client Metrics | |||||||||||||||||
Net new client assets (in billions) (1) | $ | 120.5 | $ | 133.8 | (10) | % | |||||||||||
Core net new client assets (in billions) | $ | 120.5 | $ | 148.2 | (19) | % | |||||||||||
Client assets (in billions, at quarter end) | $ | 7,862.1 | $ | 7,069.1 | 11 | % | |||||||||||
Average client assets (in billions) | $ | 7,766.4 | $ | 6,952.2 | 12 | % | |||||||||||
New brokerage accounts (in thousands) | 1,202 | 3,153 | (62) | % | |||||||||||||
Active brokerage accounts (in thousands, at quarter end) | 33,577 | 31,902 | 5 | % | |||||||||||||
Assets receiving ongoing advisory services (in billions, at quarter end) | $ | 3,943.5 | $ | 3,493.1 | 13 | % | |||||||||||
Client cash as a percentage of client assets (at quarter end) | 11.4 | % | 11.5 | % | |||||||||||||
Company Financial Information and Metrics | |||||||||||||||||
Total net revenues | $ | 4,672 | $ | 4,715 | (1) | % | |||||||||||
Total expenses excluding interest | 2,833 | 2,755 | 3 | % | |||||||||||||
Income before taxes on income | 1,839 | 1,960 | (6) | % | |||||||||||||
Taxes on income | 437 | 476 | (8) | % | |||||||||||||
Net income | 1,402 | 1,484 | (6) | % | |||||||||||||
Preferred stock dividends and other | 124 | 96 | 29 | % | |||||||||||||
Net income available to common stockholders | $ | 1,278 | $ | 1,388 | (8) | % | |||||||||||
Earnings per common share — diluted | $ | .67 | $ | .73 | (8) | % | |||||||||||
Net revenue growth from prior year | (1) | % | 80 | % | |||||||||||||
Pre-tax profit margin | 39.4 | % | 41.6 | % | |||||||||||||
Return on average common stockholders’ equity (annualized) | 12 | % | 12 | % | |||||||||||||
Expenses excluding interest as a percentage of average client assets (annualized) | 0.15 | % | 0.16 | % | |||||||||||||
Consolidated Tier 1 Leverage Ratio (at quarter end) | 6.1 | % | 6.4 | % | |||||||||||||
Non-GAAP Financial Measures (2) | |||||||||||||||||
Adjusted total expenses (3) | $ | 2,583 | $ | 2,482 | |||||||||||||
Adjusted diluted EPS | $ | .77 | $ | .84 | |||||||||||||
Return on tangible common equity | 26 | % | 24 | % |
2022 | 2021 | ||||||||||||||||||||||||||||
Three Months Ended March 31, | Percent Change | Amount | % of Total Net Revenues | Amount | % of Total Net Revenues | ||||||||||||||||||||||||
Net interest revenue | |||||||||||||||||||||||||||||
Interest revenue | 15 | % | $ | 2,319 | 50 | % | $ | 2,015 | 43 | % | |||||||||||||||||||
Interest expense | 31 | % | (136) | (3) | % | (104) | (2) | % | |||||||||||||||||||||
Net interest revenue | 14 | % | 2,183 | 47 | % | 1,911 | 41 | % | |||||||||||||||||||||
Asset management and administration fees | |||||||||||||||||||||||||||||
Mutual funds, exchange-traded funds (ETFs), and collective trust funds (CTFs) | 4 | % | 489 | 10 | % | 470 | 10 | % | |||||||||||||||||||||
Advice solutions | 6 | % | 496 | 11 | % | 468 | 10 | % | |||||||||||||||||||||
Other | 6 | % | 83 | 2 | % | 78 | 2 | % | |||||||||||||||||||||
Asset management and administration fees | 5 | % | 1,068 | 23 | % | 1,016 | 22 | % | |||||||||||||||||||||
Trading revenue | |||||||||||||||||||||||||||||
Commissions | (21) | % | 484 | 10 | % | 614 | 13 | % | |||||||||||||||||||||
Order flow revenue | (20) | % | 470 | 10 | % | 591 | 13 | % | |||||||||||||||||||||
Principal transactions | (18) | % | 9 | — | 11 | — | |||||||||||||||||||||||
Trading revenue | (21) | % | 963 | 20 | % | 1,216 | 26 | % | |||||||||||||||||||||
Bank deposit account fees | (16) | % | 294 | 6 | % | 351 | 7 | % | |||||||||||||||||||||
Other | (26) | % | 164 | 4 | % | 221 | 4 | % | |||||||||||||||||||||
Total net revenues | (1) | % | $ | 4,672 | 100 | % | $ | 4,715 | 100 | % |
2022 | 2021 | ||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | Average Balance | Interest Revenue/ Expense | Average Yield/Rate | Average Balance | Interest Revenue/ Expense | Average Yield/Rate | |||||||||||||||||||||||||||||
Interest-earning assets | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 72,465 | $ | 34 | 0.19 | % | $ | 38,898 | $ | 7 | 0.08 | % | |||||||||||||||||||||||
Cash and investments segregated | 51,913 | 15 | 0.11 | % | 48,149 | 10 | 0.08 | % | |||||||||||||||||||||||||||
Receivables from brokerage clients | 84,204 | 626 | 2.97 | % | 67,738 | 563 | 3.32 | % | |||||||||||||||||||||||||||
Available for sale securities (1,2) | 284,526 | 947 | 1.33 | % | 338,245 | 1,091 | 1.29 | % | |||||||||||||||||||||||||||
Held to maturity securities (1,2) | 103,416 | 378 | 1.46 | % | — | — | — | ||||||||||||||||||||||||||||
Bank loans | 35,852 | 187 | 2.10 | % | 24,476 | 139 | 2.27 | % | |||||||||||||||||||||||||||
Total interest-earning assets | 632,376 | 2,187 | 1.38 | % | 517,506 | 1,810 | 1.40 | % | |||||||||||||||||||||||||||
Securities lending revenue | 129 | 204 | |||||||||||||||||||||||||||||||||
Other interest revenue | 3 | 1 | |||||||||||||||||||||||||||||||||
Total interest-earning assets | $ | 632,376 | $ | 2,319 | 1.47 | % | $ | 517,506 | $ | 2,015 | 1.56 | % | |||||||||||||||||||||||
Funding sources | |||||||||||||||||||||||||||||||||||
Bank deposits | $ | 452,692 | $ | 16 | 0.01 | % | $ | 363,099 | $ | 13 | 0.01 | % | |||||||||||||||||||||||
Payables to brokerage clients | 105,929 | 2 | 0.01 | % | 87,339 | 2 | 0.01 | % | |||||||||||||||||||||||||||
Short-term borrowings (3) | 4,717 | 4 | 0.33 | % | 1,093 | — | 0.22 | % | |||||||||||||||||||||||||||
Long-term debt | 19,864 | 108 | 2.18 | % | 14,245 | 85 | 2.37 | % | |||||||||||||||||||||||||||
Total interest-bearing liabilities | 583,202 | 130 | 0.09 | % | 465,776 | 100 | 0.09 | % | |||||||||||||||||||||||||||
Non-interest-bearing funding sources | 49,174 | 51,730 | |||||||||||||||||||||||||||||||||
Securities lending expense | 7 | 5 | |||||||||||||||||||||||||||||||||
Other interest expense | (1) | (1) | |||||||||||||||||||||||||||||||||
Total funding sources | $ | 632,376 | $ | 136 | 0.09 | % | $ | 517,506 | $ | 104 | 0.08 | % | |||||||||||||||||||||||
Net interest revenue | $ | 2,183 | 1.38 | % | $ | 1,911 | 1.48 | % |
Three Months Ended March 31, | 2022 | 2021 | |||||||||||||||||||||||||||||||||
Average Client Assets | Revenue | Average Fee | Average Client Assets | Revenue | Average Fee | ||||||||||||||||||||||||||||||
Schwab money market funds before fee waivers | $ | 144,732 | $ | 102 | 0.29 | % | $ | 169,683 | $ | 122 | 0.29 | % | |||||||||||||||||||||||
Fee waivers | (54) | (78) | |||||||||||||||||||||||||||||||||
Schwab money market funds | $ | 144,732 | 48 | 0.13 | % | $ | 169,683 | 44 | 0.11 | % | |||||||||||||||||||||||||
Schwab equity and bond funds, ETFs, and CTFs | 456,326 | 97 | 0.09 | % | 377,282 | 86 | 0.09 | % | |||||||||||||||||||||||||||
Mutual Fund OneSource® and other non-transaction fee funds | 212,641 | 165 | 0.31 | % | 222,455 | 172 | 0.31 | % | |||||||||||||||||||||||||||
Other third-party mutual funds and ETFs | 872,212 | 179 | 0.08 | % | 849,409 | 168 | 0.08 | % | |||||||||||||||||||||||||||
Total mutual funds, ETFs, and CTFs (1) | $ | 1,685,911 | 489 | 0.12 | % | $ | 1,618,829 | 470 | 0.12 | % | |||||||||||||||||||||||||
Advice solutions (1) | |||||||||||||||||||||||||||||||||||
Fee-based | $ | 469,325 | 496 | 0.43 | % | $ | 424,629 | 468 | 0.45 | % | |||||||||||||||||||||||||
Non-fee-based | 90,335 | — | — | 84,767 | — | — | |||||||||||||||||||||||||||||
Total advice solutions | $ | 559,660 | 496 | 0.36 | % | $ | 509,396 | 468 | 0.37 | % | |||||||||||||||||||||||||
Other balance-based fees (2) | 616,679 | 67 | 0.04 | % | 576,562 | 64 | 0.05 | % | |||||||||||||||||||||||||||
Other (3) | 16 | 14 | |||||||||||||||||||||||||||||||||
Total asset management and administration fees | $ | 1,068 | $ | 1,016 |
Schwab Money Market Funds | Schwab Equity and Bond Funds, ETFs, and CTFs | Mutual Fund OneSource® and Other NTF funds | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||
Balance at beginning of period | $ | 146,509 | $ | 176,089 | $ | 454,864 | $ | 341,689 | $ | 234,940 | $ | 223,857 | |||||||||||||||||||||||
Net inflows (outflows) | (3,420) | (12,522) | 9,461 | 12,805 | (8,556) | (4,688) | |||||||||||||||||||||||||||||
Net market gains (losses) and other | 16 | 14 | (20,048) | 19,323 | 9,081 | 8,120 | |||||||||||||||||||||||||||||
Balance at end of period | $ | 143,105 | $ | 163,581 | $ | 444,277 | $ | 373,817 | $ | 235,465 | $ | 227,289 |
Three Months Ended March 31, | Percent Change | ||||||||||||||||
2022 | 2021 | ||||||||||||||||
Trading revenue | $ | 963 | $ | 1,216 | (21) | % | |||||||||||
Clients’ daily average trades (DATs) (in thousands) | 6,578 | 8,414 | (22) | % | |||||||||||||
Number of trading days | 62.0 | 61.0 | 2 | % | |||||||||||||
Revenue per trade (1) | $ | 2.36 | $ | 2.37 | — |
Three Months Ended March 31, | Percent Change | ||||||||||||||||
2022 | 2021 | ||||||||||||||||
Bank deposit account fees | $ | 294 | $ | 351 | (16) | % | |||||||||||
Average BDA balances | $ | 155,809 | $ | 166,750 | (7) | % | |||||||||||
Average net yield | 0.75 | % | 0.84 | % | |||||||||||||
Percentage of average BDA balances designated as: | |||||||||||||||||
Fixed-rate balances | 77 | % | 79 | % | |||||||||||||
Floating-rate balances | 23 | % | 21 | % |
Three Months Ended March 31, | Percent Change | ||||||||||||||||
2022 | 2021 | ||||||||||||||||
Compensation and benefits | |||||||||||||||||
Salaries and wages | $ | 853 | $ | 776 | 10 | % | |||||||||||
Incentive compensation | 417 | 409 | 2 | % | |||||||||||||
Employee benefits and other | 276 | 245 | 13 | % | |||||||||||||
Total compensation and benefits | $ | 1,546 | $ | 1,430 | 8 | % | |||||||||||
Professional services | 244 | 226 | 8 | % | |||||||||||||
Occupancy and equipment | 269 | 237 | 14 | % | |||||||||||||
Advertising and market development | 102 | 116 | (12) | % | |||||||||||||
Communications | 144 | 147 | (2) | % | |||||||||||||
Depreciation and amortization | 150 | 129 | 16 | % | |||||||||||||
Amortization of acquired intangible assets | 154 | 154 | — | ||||||||||||||
Regulatory fees and assessments | 68 | 78 | (13) | % | |||||||||||||
Other | 156 | 238 | (34) | % | |||||||||||||
Total expenses excluding interest | $ | 2,833 | $ | 2,755 | 3 | % | |||||||||||
Expenses as a percentage of total net revenues | |||||||||||||||||
Compensation and benefits | 33 | % | 30 | % | |||||||||||||
Advertising and market development | 2 | % | 2 | % | |||||||||||||
Full-time equivalent employees (in thousands) | |||||||||||||||||
At quarter end | 34.2 | 32.0 | 7 | % | |||||||||||||
Average | 33.9 | 32.1 | 6 | % |
Investor Services | Advisor Services | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | Percent Change | 2022 | 2021 | Percent Change | 2022 | 2021 | Percent Change | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Net Revenues | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest revenue | 8 | % | $ | 1,574 | $ | 1,454 | 33 | % | $ | 609 | $ | 457 | 14 | % | $ | 2,183 | $ | 1,911 | |||||||||||||||||||||||||||||||||||
Asset management and administration fees | 5 | % | 781 | 742 | 5 | % | 287 | 274 | 5 | % | 1,068 | 1,016 | |||||||||||||||||||||||||||||||||||||||||
Trading revenue | (23) | % | 844 | 1,097 | — | 119 | 119 | (21) | % | 963 | 1,216 | ||||||||||||||||||||||||||||||||||||||||||
Bank deposit account fees | (21) | % | 200 | 254 | (3) | % | 94 | 97 | (16) | % | 294 | 351 | |||||||||||||||||||||||||||||||||||||||||
Other | (29) | % | 127 | 178 | (14) | % | 37 | 43 | (26) | % | 164 | 221 | |||||||||||||||||||||||||||||||||||||||||
Total net revenues | (5) | % | 3,526 | 3,725 | 16 | % | 1,146 | 990 | (1) | % | 4,672 | 4,715 | |||||||||||||||||||||||||||||||||||||||||
Expenses Excluding Interest | 1 | % | 2,131 | 2,109 | 9 | % | 702 | 646 | 3 | % | 2,833 | 2,755 | |||||||||||||||||||||||||||||||||||||||||
Income before taxes on income | (14) | % | $ | 1,395 | $ | 1,616 | 29 | % | $ | 444 | $ | 344 | (6) | % | $ | 1,839 | $ | 1,960 | |||||||||||||||||||||||||||||||||||
Net New Client Assets (in billions) (1) | (16) | % | $ | 54.6 | $ | 65.1 | (4) | % | $ | 65.9 | $ | 68.7 | (10) | % | $ | 120.5 | $ | 133.8 |
March 31, 2022 | December 31, 2021 | ||||||||||
Increase of 100 basis points | 12.0 | % | 14.1 | % | |||||||
Decrease of 100 basis points | (8.0) | % | (4.5) | % |
Description | Borrower | Outstanding | Available | ||||||||
Federal Home Loan Bank secured credit facilities | Banking subsidiaries | $ | — | $ | 68,208 | ||||||
Federal Reserve discount window | Banking subsidiaries | — | 10,309 | ||||||||
Uncommitted, unsecured lines of credit with various external banks | CSC, CS&Co | — | 1,522 | ||||||||
Unsecured commercial paper | CSC | 2,386 | 2,614 | ||||||||
Committed, unsecured credit facility with various external banks (1) | TDAC | — | 600 | ||||||||
Secured uncommitted lines of credit with various external banks (2) | TDAC | 1,850 | — |
Average for the Three Months Ended March 31, 2022 | |||||
Total eligible HQLA | $ | 129,040 | |||
Net cash outflows | $ | 115,861 | |||
LCR | 111 | % |
March 31, 2022 | Par Outstanding | Maturity | Weighted Average Interest Rate | Moody’s | Standard & Poor’s | Fitch | ||||||||||||||
CSC Senior Notes | $ | 20,768 | 2022 - 2032 | 2.46% | A2 | A | A | |||||||||||||
TDA Holding Senior Notes | $ | 963 | 2022 - 2029 | 3.06% | A2 | A | — | |||||||||||||
Issuance Date | Issuance Amount | Maturity Date | Interest Rate | ||||||||
March 3, 2022 | $ | 500 | 03/03/2027 | SOFR (1) + 1.050% | |||||||
March 3, 2022 | $ | 1,500 | 03/03/2027 | 2.450% | |||||||
March 3, 2022 | $ | 1,000 | 03/03/2032 | 2.900% | |||||||
Date Issued and Sold | Net Proceeds | |||||||
Series K | March 4, 2022 | $ | 740 | |||||
March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||
CSC | CSB | CSC | CSB | ||||||||||||||||||||
Total stockholders’ equity | $ | 48,098 | $ | 21,036 | $ | 56,261 | $ | 27,035 | |||||||||||||||
Less: | |||||||||||||||||||||||
Preferred stock | 10,694 | — | 9,954 | — | |||||||||||||||||||
Common Equity Tier 1 Capital before regulatory adjustments | $ | 37,404 | $ | 21,036 | $ | 46,307 | $ | 27,035 | |||||||||||||||
Less: | |||||||||||||||||||||||
Goodwill, net of associated deferred tax liabilities | $ | 11,857 | $ | 13 | $ | 11,857 | $ | 13 | |||||||||||||||
Other intangible assets, net of associated deferred tax liabilities | 7,446 | — | 7,579 | — | |||||||||||||||||||
Deferred tax assets, net of valuation allowances and deferred tax liabilities | 27 | 25 | 13 | 12 | |||||||||||||||||||
AOCI adjustment (1) | (11,045) | (9,674) | (1,109) | (1,004) | |||||||||||||||||||
Common Equity Tier 1 Capital | $ | 29,119 | $ | 30,672 | $ | 27,967 | $ | 28,014 | |||||||||||||||
Tier 1 Capital | $ | 39,813 | $ | 30,672 | $ | 37,921 | $ | 28,014 | |||||||||||||||
Total Capital | 39,850 | 30,701 | 37,950 | 28,033 | |||||||||||||||||||
Risk-Weighted Assets | 154,355 | 113,108 | 141,969 | 104,409 | |||||||||||||||||||
Total Leverage Exposure | 653,783 | 435,882 | 614,466 | 400,532 | |||||||||||||||||||
Common Equity Tier 1 Capital/Risk-Weighted Assets | 18.9 | % | 27.1 | % | 19.7 | % | 26.8 | % | |||||||||||||||
Tier 1 Capital/Risk-Weighted Assets | 25.8 | % | 27.1 | % | 26.7 | % | 26.8 | % | |||||||||||||||
Total Capital/Risk-Weighted Assets | 25.8 | % | 27.1 | % | 26.7 | % | 26.8 | % | |||||||||||||||
Tier 1 Leverage Ratio | 6.1 | % | 7.1 | % | 6.2 | % | 7.1 | % | |||||||||||||||
Supplementary Leverage Ratio | 6.1 | % | 7.0 | % | 6.2 | % | 7.0 | % |
2022 | 2021 | ||||||||||||||||||||||
Three Months Ended March 31, | Cash Paid | Per Share Amount | Cash Paid | Per Share Amount | |||||||||||||||||||
Common and Nonvoting Common Stock | $ | 381 | $ | .20 | $ | 341 | $ | .18 | |||||||||||||||
Series A Preferred Stock (1) | 14 | 35.00 | 14 | 35.00 | |||||||||||||||||||
Series C Preferred Stock (2) | — | — | 9 | 15.00 | |||||||||||||||||||
Series D Preferred Stock (3) | 11 | 14.88 | 11 | 14.88 | |||||||||||||||||||
Series E Preferred Stock (4) | 14 | 2,312.50 | 14 | 2,312.50 | |||||||||||||||||||
Series F Preferred Stock (5) | — | — | — | — | |||||||||||||||||||
Series G Preferred Stock (3) | 34 | 1,343.75 | 34 | 1,343.75 | |||||||||||||||||||
Series H Preferred Stock (6) | 25 | 1,000.00 | 22 | 888.89 | |||||||||||||||||||
Series I Preferred Stock (7) | 23 | 1,000.00 | — | — | |||||||||||||||||||
Series J Preferred Stock (8) | 7 | 11.13 | — | — | |||||||||||||||||||
Series K Preferred Stock (9) | — | — | N/A | N/A |
Non-GAAP Adjustment or Measure | Definition | Usefulness to Investors and Uses by Management | ||||||
Acquisition and integration-related costs and amortization of acquired intangible assets | Schwab adjusts certain GAAP financial measures to exclude the impact of acquisition and integration-related costs incurred as a result of the Company’s acquisitions, amortization of acquired intangible assets, and, where applicable, the income tax effect of these expenses. Adjustments made to exclude amortization of acquired intangible assets are reflective of all acquired intangible assets, which were recorded as part of purchase accounting. These acquired intangible assets contribute to the Company’s revenue generation. Amortization of acquired intangible assets will continue in future periods over their remaining useful lives. | We exclude acquisition and integration-related costs and amortization of acquired intangible assets for the purpose of calculating certain non-GAAP measures because we believe doing so provides additional transparency of Schwab’s ongoing operations, and is useful in both evaluating the operating performance of the business and facilitating comparison of results with prior and future periods. Acquisition and integration-related costs fluctuate based on the timing of acquisitions and integration activities, thereby limiting comparability of results among periods, and are not representative of the costs of running the Company’s ongoing business. Amortization of acquired intangible assets is excluded because management does not believe it is indicative of the Company’s underlying operating performance. | ||||||
Return on tangible common equity | Return on tangible common equity represents annualized adjusted net income available to common stockholders as a percentage of average tangible common equity. Tangible common equity represents common equity less goodwill, acquired intangible assets – net, and related deferred tax liabilities. | Acquisitions typically result in the recognition of significant amounts of goodwill and acquired intangible assets. We believe return on tangible common equity may be useful to investors as a supplemental measure to facilitate assessing capital efficiency and returns relative to the composition of Schwab’s balance sheet. |
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Total expenses excluding interest (GAAP) | $ | 2,833 | $ | 2,755 | ||||
Acquisition and integration-related costs (1) | (96) | (119) | ||||||
Amortization of acquired intangible assets | (154) | (154) | ||||||
Adjusted total expenses (non-GAAP) | $ | 2,583 | $ | 2,482 |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Amount | Diluted EPS | Amount | Diluted EPS | |||||||||||
Net income available to common stockholders (GAAP), Earnings per common share — diluted (GAAP) | $ | 1,278 | $ | .67 | $ | 1,388 | $ | .73 | ||||||
Acquisition and integration-related costs | 96 | .05 | 119 | .06 | ||||||||||
Amortization of acquired intangible assets | 154 | .08 | 154 | .08 | ||||||||||
Income tax effects (1) | (61) | (.03) | (67) | (.03) | ||||||||||
Adjusted net income available to common stockholders (non-GAAP), Adjusted diluted EPS (non-GAAP) | $ | 1,467 | $ | .77 | $ | 1,594 | $ | .84 |
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Return on average common stockholders’ equity (GAAP) | 12 | % | 12 | % | ||||
Average common stockholders’ equity | $ | 41,856 | $ | 46,691 | ||||
Less: Average goodwill | (11,952) | (11,952) | ||||||
Less: Average acquired intangible assets — net | (9,303) | (9,915) | ||||||
Plus: Average deferred tax liabilities related to goodwill and acquired intangible assets — net | 1,886 | 1,935 | ||||||
Average tangible common equity | $ | 22,487 | $ | 26,759 | ||||
Adjusted net income available to common stockholders (1) | $ | 1,467 | $ | 1,594 | ||||
Return on tangible common equity (non-GAAP) | 26 | % | 24 | % |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Net Revenues | |||||||||||
Interest revenue | $ | 2,319 | $ | 2,015 | |||||||
Interest expense | (136) | (104) | |||||||||
Net interest revenue | 2,183 | 1,911 | |||||||||
Asset management and administration fees (1) | 1,068 | 1,016 | |||||||||
Trading revenue | 963 | 1,216 | |||||||||
Bank deposit account fees | 294 | 351 | |||||||||
Other | 164 | 221 | |||||||||
Total net revenues | 4,672 | 4,715 | |||||||||
Expenses Excluding Interest | |||||||||||
Compensation and benefits | 1,546 | 1,430 | |||||||||
Professional services | 244 | 226 | |||||||||
Occupancy and equipment | 269 | 237 | |||||||||
Advertising and market development | 102 | 116 | |||||||||
Communications | 144 | 147 | |||||||||
Depreciation and amortization | 150 | 129 | |||||||||
Amortization of acquired intangible assets | 154 | 154 | |||||||||
Regulatory fees and assessments | 68 | 78 | |||||||||
Other | 156 | 238 | |||||||||
Total expenses excluding interest | 2,833 | 2,755 | |||||||||
Income before taxes on income | 1,839 | 1,960 | |||||||||
Taxes on income | 437 | 476 | |||||||||
Net Income | 1,402 | 1,484 | |||||||||
Preferred stock dividends and other | 124 | 96 | |||||||||
Net Income Available to Common Stockholders | $ | 1,278 | $ | 1,388 | |||||||
Weighted-Average Common Shares Outstanding: | |||||||||||
Basic | 1,894 | 1,882 | |||||||||
Diluted | 1,905 | 1,892 | |||||||||
Earnings Per Common Shares Outstanding (2): | |||||||||||
Basic | $ | .67 | $ | .74 | |||||||
Diluted | $ | .67 | $ | .73 | |||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Net income | $ | 1,402 | $ | 1,484 | |||||||
Other comprehensive income (loss), before tax: | |||||||||||
Change in net unrealized gain (loss) on available for sale securities: | |||||||||||
Net unrealized gain (loss) excluding transfers to held to maturity | (13,135) | (5,917) | |||||||||
Reclassification of net unrealized loss transferred to held to maturity | 2,429 | — | |||||||||
Other reclassifications included in other revenue | (12) | (10) | |||||||||
Change in net unrealized gain (loss) on held to maturity securities: | |||||||||||
Reclassification of net unrealized loss transferred from available for sale | (2,429) | — | |||||||||
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale | 92 | — | |||||||||
Other comprehensive income (loss), before tax | (13,055) | (5,927) | |||||||||
Income tax effect | 3,119 | 1,411 | |||||||||
Other comprehensive income (loss), net of tax | (9,936) | (4,516) | |||||||||
Comprehensive Income (Loss) | $ | (8,534) | $ | (3,032) |
March 31, 2022 | December 31, 2021 | ||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 91,126 | $ | 62,975 | |||||||
Cash and investments segregated and on deposit for regulatory purposes (including resale agreements of $14,011 at March 31, 2022 and $13,096 at December 31, 2021) | 54,445 | 53,949 | |||||||||
Receivables from brokerage clients — net | 84,070 | 90,565 | |||||||||
Available for sale securities (amortized cost of $284,195 at March 31, 2022 and $391,482 at December 31, 2021) | 272,049 | 390,054 | |||||||||
Held to maturity securities | 105,286 | — | |||||||||
Bank loans — net | 37,207 | 34,636 | |||||||||
Equipment, office facilities, and property — net | 3,499 | 3,442 | |||||||||
Goodwill | 11,952 | 11,952 | |||||||||
Acquired intangible assets — net | 9,227 | 9,379 | |||||||||
Other assets | 12,089 | 10,318 | |||||||||
Total assets | $ | 680,950 | $ | 667,270 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Bank deposits | $ | 465,827 | $ | 443,778 | |||||||
Payables to brokerage clients | 125,307 | 125,671 | |||||||||
Accrued expenses and other liabilities | 15,611 | 17,791 | |||||||||
Short-term borrowings | 4,234 | 4,855 | |||||||||
Long-term debt | 21,873 | 18,914 | |||||||||
Total liabilities | 632,852 | 611,009 | |||||||||
Stockholders’ equity: | |||||||||||
Preferred stock — $.01 par value per share; aggregate liquidation preference of $10,850 and $10,100 at March 31, 2022 and December 31, 2021, respectively | 10,694 | 9,954 | |||||||||
Common stock — 3 billion shares authorized; $.01 par value per share; 1,994,895,180 shares issued at March 31, 2022 and December 31, 2021 | 20 | 20 | |||||||||
Nonvoting common stock — 300 million shares authorized; $.01 par value per share; 79,293,695 shares issued at March 31, 2022 and December 31, 2021 | 1 | 1 | |||||||||
Additional paid-in capital | 26,826 | 26,741 | |||||||||
Retained earnings | 26,895 | 25,992 | |||||||||
Treasury stock, at cost — 178,779,573 shares at March 31, 2022 and 180,959,274 shares at December 31, 2021 | (5,293) | (5,338) | |||||||||
Accumulated other comprehensive income (loss) | (11,045) | (1,109) | |||||||||
Total stockholders’ equity | 48,098 | 56,261 | |||||||||
Total liabilities and stockholders’ equity | $ | 680,950 | $ | 667,270 |
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Nonvoting Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock, at cost | Total | ||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 7,733 | 1,995 | $ | 20 | 79 | $ | 1 | $ | 26,515 | $ | 21,975 | $ | (5,578) | $ | 5,394 | $ | 56,060 | ||||||||||||||
Net income | — | — | — | — | — | — | 1,484 | — | — | 1,484 | ||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | — | — | — | (4,516) | (4,516) | ||||||||||||||||||||||
Issuance of preferred stock, net | 2,806 | — | — | — | — | — | — | — | — | 2,806 | ||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | — | — | — | (90) | — | — | (90) | ||||||||||||||||||||||
Dividends declared on common stock — $.18 per share | — | — | — | — | — | — | (340) | — | — | (340) | ||||||||||||||||||||||
Stock option exercises and other | — | — | — | — | — | 8 | — | 89 | — | 97 | ||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | 98 | — | — | — | 98 | ||||||||||||||||||||||
Other | — | — | — | — | — | 8 | — | (13) | — | (5) | ||||||||||||||||||||||
Balance at March 31, 2021 | $ | 10,539 | 1,995 | $ | 20 | 79 | $ | 1 | $ | 26,629 | $ | 23,029 | $ | (5,502) | $ | 878 | $ | 55,594 | ||||||||||||||
Balance at December 31, 2021 | $ | 9,954 | 1,995 | $ | 20 | 79 | $ | 1 | $ | 26,741 | $ | 25,992 | $ | (5,338) | $ | (1,109) | $ | 56,261 | ||||||||||||||
Net income | — | — | — | — | — | — | 1,402 | — | — | 1,402 | ||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | — | — | — | (9,936) | (9,936) | ||||||||||||||||||||||
Issuance of preferred stock, net | 740 | — | — | — | — | — | — | — | — | 740 | ||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | — | — | — | (118) | — | — | (118) | ||||||||||||||||||||||
Dividends declared on common stock — $.20 per share | — | — | — | — | — | — | (381) | — | — | (381) | ||||||||||||||||||||||
Stock option exercises and other | — | — | — | — | — | (51) | — | 81 | — | 30 | ||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | 112 | — | — | — | 112 | ||||||||||||||||||||||
Other | — | — | — | — | — | 24 | — | (36) | — | (12) | ||||||||||||||||||||||
Balance at March 31, 2022 | $ | 10,694 | 1,995 | $ | 20 | 79 | $ | 1 | $ | 26,826 | $ | 26,895 | $ | (5,293) | $ | (11,045) | $ | 48,098 |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Cash Flows from Operating Activities | |||||||||||
Net income | $ | 1,402 | $ | 1,484 | |||||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||||||||||
Share-based compensation | 144 | 100 | |||||||||
Depreciation and amortization | 150 | 129 | |||||||||
Amortization of acquired intangible assets | 154 | 154 | |||||||||
Provision (benefit) for deferred income taxes | (19) | (16) | |||||||||
Premium amortization, net, on available for sale and held to maturity securities | 486 | 624 | |||||||||
Other | 98 | 92 | |||||||||
Net change in: | |||||||||||
Investments segregated and on deposit for regulatory purposes | (4,628) | 5,022 | |||||||||
Receivables from brokerage clients | 6,487 | (10,290) | |||||||||
Other assets | (59) | 109 | |||||||||
Payables to brokerage clients | (364) | (2,862) | |||||||||
Accrued expenses and other liabilities | (798) | 712 | |||||||||
Net cash provided by (used for) operating activities | 3,053 | (4,742) | |||||||||
Cash Flows from Investing Activities | |||||||||||
Purchases of available for sale securities | (30,710) | (41,658) | |||||||||
Proceeds from sales of available for sale securities | 9,521 | 6,605 | |||||||||
Principal payments on available for sale securities | 16,892 | 23,909 | |||||||||
Principal payments on held to maturity securities | 3,505 | — | |||||||||
Net change in bank loans | (2,493) | (1,780) | |||||||||
Purchases of equipment, office facilities, and property | (296) | (186) | |||||||||
Purchases of Federal Reserve stock | (27) | (10) | |||||||||
Other investing activities | (34) | (38) | |||||||||
Net cash provided by (used for) investing activities | (3,642) | (13,158) | |||||||||
Cash Flows from Financing Activities | |||||||||||
Net change in bank deposits | 22,049 | 11,876 | |||||||||
Proceeds from commercial paper and secured lines of credit | 1,148 | 3,250 | |||||||||
Repayment of commercial paper and secured lines of credit | (1,771) | (750) | |||||||||
Issuance of long-term debt | 2,971 | 3,970 | |||||||||
Net proceeds from preferred stock offerings | 740 | 2,806 | |||||||||
Dividends paid | (509) | (445) | |||||||||
Proceeds from stock options exercised | 30 | 97 | |||||||||
Other financing activities | (49) | (25) | |||||||||
Net cash provided by (used for) financing activities | 24,609 | 20,779 | |||||||||
Increase (Decrease) in Cash and Cash Equivalents, including Amounts Restricted | 24,020 | 2,879 | |||||||||
Cash and Cash Equivalents, including Amounts Restricted at Beginning of Period | 93,338 | 70,560 | |||||||||
Cash and Cash Equivalents, including Amounts Restricted at End of Period | $ | 117,358 | $ | 73,439 |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Supplemental Cash Flow Information | |||||||||||
Non-cash investing activity: | |||||||||||
Securities transferred from available for sale to held to maturity, at fair value | $ | 108,805 | $ | — | |||||||
Securities purchased during the period but settled after period end | $ | 15 | $ | — | |||||||
Changes in accrued equipment, office facilities, and property purchases | $ | (87) | $ | 23 | |||||||
Other Supplemental Cash Flow Information: | |||||||||||
Cash paid during the period for: | |||||||||||
Interest | $ | 153 | $ | 123 | |||||||
Income taxes | $ | 50 | $ | 37 | |||||||
Amounts included in the measurement of lease liabilities | $ | 53 | $ | 70 | |||||||
Leased assets obtained in exchange for new operating lease liabilities | $ | 140 | $ | 9 | |||||||
Leased assets obtained in exchange for new finance lease liabilities | $ | 5 | $ | 108 | |||||||
March 31, 2022 | March 31, 2021 | ||||||||||
Reconciliation of cash, cash equivalents and amounts reported within the balance sheet (1) | |||||||||||
Cash and cash equivalents | $ | 91,126 | $ | 48,182 | |||||||
Restricted cash and cash equivalents amounts included in cash and investments segregated and on deposit for regulatory purposes | 26,232 | 25,257 | |||||||||
Total cash and cash equivalents, including amounts restricted shown in the statement of cash flows | $ | 117,358 | $ | 73,439 |
Standard | Description | Required Date of Adoption | Effects on the Financial Statements or Other Significant Matters | ||||||||
Accounting Standards Update (ASU) 2022-02, “Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” | Troubled Debt Restructurings (TDRs) Eliminates the accounting guidance for TDRs. Rather than applying the specific guidance for TDRs, creditors will apply the recognition and measurement guidance for loan refinancings and restructurings to determine whether a modification results in a new loan or a continuation of an existing loan. The guidance requires enhanced disclosures for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Vintage Disclosures Requires that an entity disclose current-period gross writeoffs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost. Adoption provides for prospective application, with an option to apply the modified retrospective transition method for the change in recognition and measurement of TDRs. | January 1, 2023 | The Company is evaluating the impact of this guidance on its financial statements. |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Net interest revenue | |||||||||||
Cash and cash equivalents | $ | 34 | $ | 7 | |||||||
Cash and investments segregated | 15 | 10 | |||||||||
Receivables from brokerage clients | 626 | 563 | |||||||||
Available for sale securities | 947 | 1,091 | |||||||||
Held to maturity securities | 378 | — | |||||||||
Bank loans | 187 | 139 | |||||||||
Securities lending revenue | 129 | 204 | |||||||||
Other interest revenue | 3 | 1 | |||||||||
Interest revenue | 2,319 | 2,015 | |||||||||
Bank deposits | (16) | (13) | |||||||||
Payables to brokerage clients | (2) | (2) | |||||||||
Short-term borrowings | (4) | — | |||||||||
Long-term debt | (108) | (85) | |||||||||
Securities lending expense | (7) | (5) | |||||||||
Other interest expense | 1 | 1 | |||||||||
Interest expense | (136) | (104) | |||||||||
Net interest revenue | 2,183 | 1,911 | |||||||||
Asset management and administration fees | |||||||||||
Mutual funds, ETFs, and CTFs | 489 | 470 | |||||||||
Advice solutions | 496 | 468 | |||||||||
Other | 83 | 78 | |||||||||
Asset management and administration fees | 1,068 | 1,016 | |||||||||
Trading revenue | |||||||||||
Commissions | 484 | 614 | |||||||||
Order flow revenue | 470 | 591 | |||||||||
Principal transactions | 9 | 11 | |||||||||
Trading revenue | 963 | 1,216 | |||||||||
Bank deposit account fees | 294 | 351 | |||||||||
Other | 164 | 221 | |||||||||
Total net revenues | $ | 4,672 | $ | 4,715 |
March 31, 2022 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||||
Available for sale securities | ||||||||||||||||||||||||||
U.S. agency mortgage-backed securities | $ | 211,648 | $ | 279 | $ | 10,393 | $ | 201,534 | ||||||||||||||||||
U.S. Treasury securities | 32,839 | 1 | 1,007 | 31,833 | ||||||||||||||||||||||
Asset-backed securities (1) | 18,742 | 20 | 339 | 18,423 | ||||||||||||||||||||||
Corporate debt securities (2) | 15,241 | 15 | 648 | 14,608 | ||||||||||||||||||||||
U.S. state and municipal securities | 1,604 | 10 | 38 | 1,576 | ||||||||||||||||||||||
Non-agency commercial mortgage-backed securities | 1,166 | 3 | 8 | 1,161 | ||||||||||||||||||||||
Certificates of deposit | 1,300 | — | 4 | 1,296 | ||||||||||||||||||||||
Foreign government agency securities | 1,132 | — | 36 | 1,096 | ||||||||||||||||||||||
Commercial paper (3) | 200 | — | — | 200 | ||||||||||||||||||||||
Other | 323 | — | 1 | 322 | ||||||||||||||||||||||
Total available for sale securities | $ | 284,195 | $ | 328 | $ | 12,474 | $ | 272,049 | ||||||||||||||||||
Held to maturity securities | ||||||||||||||||||||||||||
U.S. agency mortgage-backed securities | $ | 105,286 | $ | — | $ | 6,137 | $ | 99,149 | ||||||||||||||||||
Total held to maturity securities | $ | 105,286 | $ | — | $ | 6,137 | $ | 99,149 |
December 31, 2021 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||||
Available for sale securities | ||||||||||||||||||||||||||
U.S. agency mortgage-backed securities | $ | 335,803 | $ | 3,141 | $ | 4,589 | $ | 334,355 | ||||||||||||||||||
U.S. Treasury securities | 21,394 | 13 | 125 | 21,282 | ||||||||||||||||||||||
Asset-backed securities (1) | 17,547 | 79 | 80 | 17,546 | ||||||||||||||||||||||
Corporate debt securities (2) | 12,310 | 143 | 109 | 12,344 | ||||||||||||||||||||||
U.S. state and municipal securities | 1,611 | 81 | 5 | 1,687 | ||||||||||||||||||||||
Non-agency commercial mortgage-backed securities | 1,170 | 20 | — | 1,190 | ||||||||||||||||||||||
Certificates of deposit | 1,000 | — | 1 | 999 | ||||||||||||||||||||||
Foreign government agency securities | 425 | — | — | 425 | ||||||||||||||||||||||
Commercial paper (3) | 200 | — | — | 200 | ||||||||||||||||||||||
Other | 22 | 4 | — | 26 | ||||||||||||||||||||||
Total available for sale securities | $ | 391,482 | $ | 3,481 | $ | 4,909 | $ | 390,054 | ||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||
March 31, 2022 | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||||||||||||
Available for sale securities | |||||||||||||||||||||||||||||||||||
U.S. agency mortgage-backed securities | $ | 122,317 | $ | 5,606 | $ | 52,554 | $ | 4,787 | $ | 174,871 | $ | 10,393 | |||||||||||||||||||||||
U.S. Treasury securities | 30,157 | 988 | 202 | 19 | 30,359 | 1,007 | |||||||||||||||||||||||||||||
Asset-backed securities | 11,869 | 282 | 2,984 | 57 | 14,853 | 339 | |||||||||||||||||||||||||||||
Corporate debt securities | 10,535 | 429 | 1,804 | 219 | 12,339 | 648 | |||||||||||||||||||||||||||||
U.S. state and municipal securities | 761 | 33 | 38 | 5 | 799 | 38 | |||||||||||||||||||||||||||||
Non-agency commercial mortgage-backed securities | 281 | 8 | — | — | 281 | 8 | |||||||||||||||||||||||||||||
Certificates of deposit | 1,296 | 4 | — | — | 1,296 | 4 | |||||||||||||||||||||||||||||
Foreign government agency securities | 1,096 | 36 | — | — | 1,096 | 36 | |||||||||||||||||||||||||||||
Other | 299 | 1 | — | — | 299 | 1 | |||||||||||||||||||||||||||||
Total | $ | 178,611 | $ | 7,387 | $ | 57,582 | $ | 5,087 | $ | 236,193 | $ | 12,474 | |||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||||||||
U.S. agency mortgage-backed securities | $ | 186,955 | $ | 3,216 | $ | 38,007 | $ | 1,373 | $ | 224,962 | $ | 4,589 | |||||||||||||||||||||||
U.S. Treasury securities | 16,658 | 125 | 21 | — | 16,679 | 125 | |||||||||||||||||||||||||||||
Asset-backed securities | 6,093 | 58 | 2,708 | 22 | 8,801 | 80 | |||||||||||||||||||||||||||||
Corporate debt securities | 4,713 | 99 | 197 | 10 | 4,910 | 109 | |||||||||||||||||||||||||||||
Certificates of deposit | 799 | 1 | — | — | 799 | 1 | |||||||||||||||||||||||||||||
U.S. state and municipal securities | 191 | 4 | 5 | 1 | 196 | 5 | |||||||||||||||||||||||||||||
Total | $ | 215,409 | $ | 3,503 | $ | 40,938 | $ | 1,406 | $ | 256,347 | $ | 4,909 | |||||||||||||||||||||||
March 31, 2022 | Within 1 year | After 1 year through 5 years | After 5 years through 10 years | After 10 years | Total | ||||||||||||||||||||||||
U.S. agency mortgage-backed securities | $ | 2,728 | $ | 15,269 | $ | 40,423 | $ | 143,114 | $ | 201,534 | |||||||||||||||||||
U.S. Treasury securities | 5,250 | 24,070 | 2,513 | — | 31,833 | ||||||||||||||||||||||||
Asset-backed securities | — | 6,647 | 2,906 | 8,870 | 18,423 | ||||||||||||||||||||||||
Corporate debt securities | 1,157 | 9,705 | 3,746 | — | 14,608 | ||||||||||||||||||||||||
U.S. state and municipal securities | 54 | 117 | 955 | 450 | 1,576 | ||||||||||||||||||||||||
Non-agency commercial mortgage-backed securities | — | — | — | 1,161 | 1,161 | ||||||||||||||||||||||||
Certificates of deposit | 500 | 796 | — | — | 1,296 | ||||||||||||||||||||||||
Foreign government agency securities | 100 | 996 | — | — | 1,096 | ||||||||||||||||||||||||
Commercial paper | 200 | — | — | — | 200 | ||||||||||||||||||||||||
Other | 100 | 199 | — | 23 | 322 | ||||||||||||||||||||||||
Total fair value | $ | 10,089 | $ | 57,799 | $ | 50,543 | $ | 153,618 | $ | 272,049 | |||||||||||||||||||
Total amortized cost | $ | 10,094 | $ | 59,019 | $ | 53,598 | $ | 161,484 | $ | 284,195 | |||||||||||||||||||
Held to maturity securities | |||||||||||||||||||||||||||||
U.S. agency mortgage-backed securities | $ | 653 | $ | 5,099 | $ | 20,215 | $ | 73,182 | $ | 99,149 | |||||||||||||||||||
Total fair value | $ | 653 | $ | 5,099 | $ | 20,215 | $ | 73,182 | $ | 99,149 | |||||||||||||||||||
Total amortized cost | $ | 655 | $ | 5,282 | $ | 21,473 | $ | 77,876 | $ | 105,286 | |||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Proceeds | $ | 9,521 | $ | 6,605 | |||||||
Gross realized gains | 115 | 20 | |||||||||
Gross realized losses | 103 | 10 |
March 31, 2022 | Current | 30-59 days past due | 60-89 days past due | >90 days past due and other nonaccrual loans (3) | Total past due and other nonaccrual loans | Total loans | Allowance for credit losses | Total bank loans – net | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||
First Mortgages (1,2) | $ | 22,653 | $ | 15 | $ | — | $ | 23 | $ | 38 | $ | 22,691 | $ | 23 | $ | 22,668 | ||||||||||
HELOCs (1,2) | 607 | 2 | — | 7 | 9 | 616 | 2 | 614 | ||||||||||||||||||
Total residential real estate | 23,260 | 17 | — | 30 | 47 | 23,307 | 25 | 23,282 | ||||||||||||||||||
Pledged asset lines | 13,696 | 12 | 8 | — | 20 | 13,716 | — | 13,716 | ||||||||||||||||||
Other | 212 | — | — | — | — | 212 | 3 | 209 | ||||||||||||||||||
Total bank loans | $ | 37,168 | $ | 29 | $ | 8 | $ | 30 | $ | 67 | $ | 37,235 | $ | 28 | $ | 37,207 | ||||||||||
December 31, 2021 | ||||||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||
First Mortgages (1,2) | $ | 21,022 | $ | 41 | $ | 1 | $ | 26 | $ | 68 | $ | 21,090 | $ | 13 | $ | 21,077 | ||||||||||
HELOCs (1,2) | 637 | 2 | — | 9 | 11 | 648 | 2 | 646 | ||||||||||||||||||
Total residential real estate | 21,659 | 43 | 1 | 35 | 79 | 21,738 | 15 | 21,723 | ||||||||||||||||||
Pledged asset lines | 12,698 | 3 | 8 | — | 11 | 12,709 | — | 12,709 | ||||||||||||||||||
Other | 207 | — | — | — | — | 207 | 3 | 204 | ||||||||||||||||||
Total bank loans | $ | 34,564 | $ | 46 | $ | 9 | $ | 35 | $ | 90 | $ | 34,654 | $ | 18 | $ | 34,636 |
March 31, 2022 | March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | First Mortgages | HELOCs | Total residential real estate | Other | Total | First Mortgages | HELOCs | Total residential real estate | Other | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 13 | $ | 2 | $ | 15 | $ | 3 | $ | 18 | $ | 22 | $ | 5 | $ | 27 | $ | 3 | $ | 30 | |||||||||||||||||||||||||||||||||||||||
Charge-offs | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Provision for credit losses | 10 | — | 10 | — | 10 | (10) | (2) | (12) | — | (12) | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | 23 | $ | 2 | $ | 25 | $ | 3 | $ | 28 | $ | 12 | $ | 3 | $ | 15 | $ | 3 | $ | 18 |
March 31, 2022 | December 31, 2021 | ||||||||||
Nonaccrual loans (1) | $ | 30 | $ | 35 | |||||||
Other real estate owned (2) | — | 1 | |||||||||
Total nonperforming assets | 30 | 36 | |||||||||
Troubled debt restructurings | — | — | |||||||||
Total nonperforming assets and troubled debt restructurings | $ | 30 | $ | 36 |
First Mortgages Amortized Cost Basis by Origination Year | ||||||||||||||||||||||||||||||||
March 31, 2022 | 2022 | 2021 | 2020 | 2019 | 2018 | pre-2018 | Total First Mortgages | Revolving HELOCs amortized cost basis | HELOCs converted to term loans | Total HELOCs | ||||||||||||||||||||||
Origination FICO | ||||||||||||||||||||||||||||||||
<620 | $ | — | $ | 1 | $ | 1 | $ | — | $ | — | $ | 1 | $ | 3 | $ | — | $ | — | $ | — | ||||||||||||
620 – 679 | 13 | 32 | 23 | 3 | 1 | 21 | 93 | — | 2 | 2 | ||||||||||||||||||||||
680 – 739 | 303 | 1,297 | 466 | 132 | 37 | 266 | 2,501 | 58 | 56 | 114 | ||||||||||||||||||||||
≥740 | 2,064 | 11,614 | 4,158 | 919 | 140 | 1,199 | 20,094 | 298 | 202 | 500 | ||||||||||||||||||||||
Total | $ | 2,380 | $ | 12,944 | $ | 4,648 | $ | 1,054 | $ | 178 | $ | 1,487 | $ | 22,691 | $ | 356 | $ | 260 | $ | 616 | ||||||||||||
Origination LTV | ||||||||||||||||||||||||||||||||
≤70% | $ | 1,939 | $ | 11,193 | $ | 3,860 | $ | 847 | $ | 140 | $ | 1,110 | $ | 19,089 | $ | 298 | $ | 185 | $ | 483 | ||||||||||||
>70% – ≤90% | 441 | 1,751 | 788 | 207 | 38 | 374 | 3,599 | 58 | 73 | 131 | ||||||||||||||||||||||
>90% – ≤100% | — | — | — | — | — | 3 | 3 | — | 2 | 2 | ||||||||||||||||||||||
Total | $ | 2,380 | $ | 12,944 | $ | 4,648 | $ | 1,054 | $ | 178 | $ | 1,487 | $ | 22,691 | $ | 356 | $ | 260 | $ | 616 | ||||||||||||
Updated FICO | ||||||||||||||||||||||||||||||||
<620 | $ | — | $ | 11 | $ | 11 | $ | 1 | $ | 1 | $ | 13 | $ | 37 | $ | 1 | $ | 6 | $ | 7 | ||||||||||||
620 – 679 | 27 | 114 | 46 | 10 | 8 | 49 | 254 | 8 | 13 | 21 | ||||||||||||||||||||||
680 – 739 | 302 | 1,118 | 373 | 110 | 23 | 166 | 2,092 | 46 | 38 | 84 | ||||||||||||||||||||||
≥740 | 2,051 | 11,701 | 4,218 | 933 | 146 | 1,259 | 20,308 | 301 | 203 | 504 | ||||||||||||||||||||||
Total | $ | 2,380 | $ | 12,944 | $ | 4,648 | $ | 1,054 | $ | 178 | $ | 1,487 | $ | 22,691 | $ | 356 | $ | 260 | $ | 616 | ||||||||||||
Estimated Current LTV (1) | ||||||||||||||||||||||||||||||||
≤70% | $ | 1,953 | $ | 12,107 | $ | 4,624 | $ | 1,050 | $ | 178 | $ | 1,483 | $ | 21,395 | $ | 356 | $ | 258 | $ | 614 | ||||||||||||
>70% – ≤90% | 427 | 837 | 24 | 4 | — | 4 | 1,296 | — | 1 | 1 | ||||||||||||||||||||||
>90% – ≤100% | — | — | — | — | — | — | — | — | 1 | 1 | ||||||||||||||||||||||
>100% | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total | $ | 2,380 | $ | 12,944 | $ | 4,648 | $ | 1,054 | $ | 178 | $ | 1,487 | $ | 22,691 | $ | 356 | $ | 260 | $ | 616 | ||||||||||||
Percent of Loans on Nonaccrual Status | 0.02 | % | 0.02 | % | 0.10 | % | 0.01 | % | 0.02 | % | 1.03 | % | 0.10 | % | 0.51 | % | 1.89 | % | 1.14 | % |
First Mortgages Amortized Cost Basis by Origination Year | |||||||||||||||||||||||||||||
December 31, 2021 | 2021 | 2020 | 2019 | 2018 | pre-2018 | Total First Mortgages | Revolving HELOCs amortized cost basis | HELOCs converted to term loans | Total HELOCs | ||||||||||||||||||||
Origination FICO | |||||||||||||||||||||||||||||
<620 | $ | 1 | $ | 1 | $ | — | $ | — | $ | 1 | $ | 3 | $ | — | $ | — | $ | — | |||||||||||
620 – 679 | 34 | 25 | 5 | 1 | 25 | 90 | — | 2 | 2 | ||||||||||||||||||||
680 – 739 | 1,306 | 524 | 146 | 41 | 313 | 2,330 | 61 | 60 | 121 | ||||||||||||||||||||
≥740 | 11,649 | 4,454 | 1,049 | 165 | 1,350 | 18,667 | 308 | 217 | 525 | ||||||||||||||||||||
Total | $ | 12,990 | $ | 5,004 | $ | 1,200 | $ | 207 | $ | 1,689 | $ | 21,090 | $ | 369 | $ | 279 | $ | 648 | |||||||||||
Origination LTV | |||||||||||||||||||||||||||||
≤70% | $ | 11,234 | $ | 4,159 | $ | 948 | $ | 160 | $ | 1,260 | $ | 17,761 | $ | 305 | $ | 199 | $ | 504 | |||||||||||
>70% – ≤90% | 1,756 | 845 | 252 | 47 | 426 | 3,326 | 64 | 78 | 142 | ||||||||||||||||||||
>90% – ≤100% | — | — | — | — | 3 | 3 | — | 2 | 2 | ||||||||||||||||||||
Total | $ | 12,990 | $ | 5,004 | $ | 1,200 | $ | 207 | $ | 1,689 | $ | 21,090 | $ | 369 | $ | 279 | $ | 648 | |||||||||||
Updated FICO | |||||||||||||||||||||||||||||
<620 | $ | 5 | $ | 2 | $ | 1 | $ | — | $ | 14 | $ | 22 | $ | 2 | $ | 6 | $ | 8 | |||||||||||
620 – 679 | 96 | 69 | 19 | 7 | 38 | 229 | 6 | 14 | 20 | ||||||||||||||||||||
680 – 739 | 1,265 | 421 | 115 | 24 | 202 | 2,027 | 51 | 39 | 90 | ||||||||||||||||||||
≥740 | 11,624 | 4,512 | 1,065 | 176 | 1,435 | 18,812 | 310 | 220 | 530 | ||||||||||||||||||||
Total | $ | 12,990 | $ | 5,004 | $ | 1,200 | $ | 207 | $ | 1,689 | $ | 21,090 | $ | 369 | $ | 279 | $ | 648 | |||||||||||
Estimated Current LTV (1) | |||||||||||||||||||||||||||||
≤70% | $ | 11,707 | $ | 4,961 | $ | 1,196 | $ | 206 | $ | 1,684 | $ | 19,754 | $ | 368 | $ | 277 | $ | 645 | |||||||||||
>70% – ≤90% | 1,283 | 43 | 4 | 1 | 5 | 1,336 | 1 | 2 | 3 | ||||||||||||||||||||
>90% – ≤100% | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
>100% | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Total | $ | 12,990 | $ | 5,004 | $ | 1,200 | $ | 207 | $ | 1,689 | $ | 21,090 | $ | 369 | $ | 279 | $ | 648 | |||||||||||
Percent of Loans on Nonaccrual Status | 0.03 | % | 0.10 | % | 0.03 | % | 0.03 | % | 1.03 | % | 0.12 | % | 0.64 | % | 2.33 | % | 1.39 | % |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
HELOCs converted to amortizing loans | $ | 2 | $ | 9 |
March 31, 2022 | Balance | |||||||
Converted to an amortizing loan by period end | $ | 260 | ||||||
Within 1 year | 22 | |||||||
> 1 year – 3 years | 60 | |||||||
> 3 years – 5 years | 62 | |||||||
> 5 years | 212 | |||||||
Total | $ | 616 |
March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||
Aggregate assets | Aggregate liabilities | Maximum exposure to loss | Aggregate assets | Aggregate liabilities | Maximum exposure to loss | |||||||||||||||||||||||||||||||||
LIHTC investments (1) | $ | 914 | $ | 516 | $ | 914 | $ | 915 | $ | 530 | $ | 915 | ||||||||||||||||||||||||||
Other CRA investments (2) | 181 | — | 207 | 161 | — | 211 | ||||||||||||||||||||||||||||||||
Total | $ | 1,095 | $ | 516 | $ | 1,121 | $ | 1,076 | $ | 530 | $ | 1,126 |
March 31, 2022 | December 31, 2021 | |||||||||||||
Interest-bearing deposits: | ||||||||||||||
Deposits swept from brokerage accounts | $ | 434,008 | $ | 412,287 | ||||||||||
Checking | 23,343 | 22,786 | ||||||||||||
Savings and other | 7,347 | 7,234 | ||||||||||||
Total interest-bearing deposits | 464,698 | 442,307 | ||||||||||||
Non-interest-bearing deposits | 1,129 | 1,471 | ||||||||||||
Total bank deposits | $ | 465,827 | $ | 443,778 |
Date of Issuance | Principal Amount Outstanding | ||||||||||
March 31, 2022 | December 31, 2021 | ||||||||||
CSC Fixed-rate Senior Notes: | |||||||||||
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 | ||||||||
0.750% due March 18, 2024 | 03/18/21 | 1,500 | 1,500 | ||||||||
3.750% due April 1, 2024 | 09/24/21 | 350 | 350 | ||||||||
3.000% due March 10, 2025 | 03/10/15 | 375 | 375 | ||||||||
4.200% due March 24, 2025 | 03/24/20 | 600 | 600 | ||||||||
3.625% due April 1, 2025 | 09/24/21 | 418 | 418 | ||||||||
3.850% due May 21, 2025 | 05/22/18 | 750 | 750 | ||||||||
3.450% due February 13, 2026 | 11/13/15 | 350 | 350 | ||||||||
0.900% due March 11, 2026 | 12/11/20 | 1,250 | 1,250 | ||||||||
1.150% due May 13, 2026 | 05/13/21 | 1,000 | 1,000 | ||||||||
3.200% due March 2, 2027 | 03/02/17 | 650 | 650 | ||||||||
2.450% due March 3, 2027 | 03/03/22 | 1,500 | — | ||||||||
3.300% due April 1, 2027 | 09/24/21 | 744 | 744 | ||||||||
3.200% due January 25, 2028 | 12/07/17 | 700 | 700 | ||||||||
2.000% due March 20, 2028 | 03/18/21 | 1,250 | 1,250 | ||||||||
4.000% due February 1, 2029 | 10/31/18 | 600 | 600 | ||||||||
3.250% due May 22, 2029 | 05/22/19 | 600 | 600 | ||||||||
2.750% due October 1, 2029 | 09/24/21 | 475 | 475 | ||||||||
4.625% due March 22, 2030 | 03/24/20 | 500 | 500 | ||||||||
1.650% due March 11, 2031 | 12/11/20 | 750 | 750 | ||||||||
2.300% due May 13, 2031 | 05/13/21 | 750 | 750 | ||||||||
1.950% due December 1, 2031 | 08/26/21 | 850 | 850 | ||||||||
2.900% due March 3, 2032 | 03/03/22 | 1,000 | — | ||||||||
CSC Floating-rate Senior Notes: | |||||||||||
SOFR + 0.500% due March 18, 2024 | 03/18/21 | 1,250 | 1,250 | ||||||||
SOFR + 0.520% due May 13, 2026 | 05/13/21 | 500 | 500 | ||||||||
SOFR + 1.050% due March 3, 2027 | 03/03/22 | 500 | — | ||||||||
Total CSC Senior Notes | 20,768 | 17,768 | |||||||||
TDA Holding Fixed-rate Senior Notes: | |||||||||||
2.950% due April 1, 2022 | 03/09/15 | 750 | 750 | ||||||||
3.750% due April 1, 2024 | 11/01/18 | 50 | 50 | ||||||||
3.625% due April 1, 2025 | 10/22/14 | 82 | 82 | ||||||||
3.300% due April 1, 2027 | 04/27/17 | 56 | 56 | ||||||||
2.750% due October 1, 2029 | 08/16/19 | 25 | 25 | ||||||||
Total TDA Holding Senior Notes | 963 | 963 | |||||||||
Finance lease liabilities | 91 | 94 | |||||||||
Unamortized premium — net | 162 | 180 | |||||||||
Debt issuance costs | (111) | (91) | |||||||||
Total long-term debt | $ | 21,873 | $ | 18,914 |
Maturities | |||||
2022 | $ | 1,028 | |||
2023 | 832 | ||||
2024 | 3,675 | ||||
2025 | 2,237 | ||||
2026 | 3,100 | ||||
Thereafter | 10,950 | ||||
Total maturities | 21,822 | ||||
Unamortized premium— net | 162 | ||||
Debt issuance costs | (111) | ||||
Total long-term debt | $ | 21,873 |
March 31, 2022 | December 31, 2021 | ||||||||||
Commitments to extend credit related to unused HELOCs, PALs, and other lines of credit | $ | 5,898 | $ | 6,193 | |||||||
Commitments to purchase First Mortgage loans | 1,577 | 1,824 | |||||||||
Total | $ | 7,475 | $ | 8,017 |
Investor Services Employee Compensation and Benefits | Advisor Services Employee Compensation and Benefits | Total | |||||||||||||||
Balance at December 31, 2021 | $ | 28 | $ | 7 | $ | 35 | |||||||||||
Amounts recognized in expense (1) | 8 | 2 | 10 | ||||||||||||||
Costs paid or otherwise settled | (4) | (1) | (5) | ||||||||||||||
Balance at March 31, 2022 (2) | $ | 32 | $ | 8 | $ | 40 |
Investor Services Employee Compensation and Benefits | Advisor Services Employee Compensation and Benefits | Total | |||||||||||||||
Balance at December 31, 2020 | $ | 86 | $ | 24 | $ | 110 | |||||||||||
Amounts recognized in expense (1) | 22 | 6 | 28 | ||||||||||||||
Costs paid or otherwise settled | (52) | (15) | (67) | ||||||||||||||
Balance at March 31, 2021 (2) | $ | 56 | $ | 15 | $ | 71 |
Investor Services | Advisor Services | ||||||||||||||||||||||||||||||||||||||||
Employee Compensation and Benefits | Facility Exit Costs (1) | Investor Services Total | Employee Compensation and Benefits | Facility Exit Costs (1) | Advisor Services Total | Total | |||||||||||||||||||||||||||||||||||
Compensation and benefits | $ | 8 | $ | — | $ | 8 | $ | 2 | $ | — | $ | 2 | $ | 10 | |||||||||||||||||||||||||||
Occupancy and equipment | — | 1 | 1 | — | 1 | 1 | 2 | ||||||||||||||||||||||||||||||||||
Total | $ | 8 | $ | 1 | $ | 9 | $ | 2 | $ | 1 | $ | 3 | $ | 12 |
Investor Services | Advisor Services | ||||||||||||||||||||||||||||||||||||||||
Employee Compensation and Benefits | Facility Exit Costs (1) | Investor Services Total | Employee Compensation and Benefits | Facility Exit Costs (1) | Advisor Services Total | Total | |||||||||||||||||||||||||||||||||||
Compensation and benefits | $ | 22 | $ | — | $ | 22 | $ | 6 | $ | — | $ | 6 | $ | 28 | |||||||||||||||||||||||||||
Occupancy and equipment | — | 10 | 10 | — | 3 | 3 | 13 | ||||||||||||||||||||||||||||||||||
Professional services | — | 1 | 1 | — | — | — | 1 | ||||||||||||||||||||||||||||||||||
Other | — | 1 | 1 | — | — | — | 1 | ||||||||||||||||||||||||||||||||||
Total | $ | 22 | $ | 12 | $ | 34 | $ | 6 | $ | 3 | $ | 9 | $ | 43 |
Investor Services | Advisor Services | ||||||||||||||||||||||||||||||||||||||||
Employee Compensation and Benefits | Facility Exit Costs (1) | Investor Services Total | Employee Compensation and Benefits | Facility Exit Costs (1) | Advisor Services Total | Total | |||||||||||||||||||||||||||||||||||
Compensation and benefits | $ | 212 | $ | — | $ | 212 | $ | 57 | $ | — | $ | 57 | $ | 269 | |||||||||||||||||||||||||||
Occupancy and equipment | — | 25 | 25 | — | 6 | 6 | 31 | ||||||||||||||||||||||||||||||||||
Depreciation and amortization | — | 2 | 2 | — | 1 | 1 | 3 | ||||||||||||||||||||||||||||||||||
Professional services | — | 1 | 1 | — | — | — | 1 | ||||||||||||||||||||||||||||||||||
Other | — | 2 | 2 | — | — | — | 2 | ||||||||||||||||||||||||||||||||||
Total | $ | 212 | $ | 30 | $ | 242 | $ | 57 | $ | 7 | $ | 64 | $ | 306 |
Gross Assets/ Liabilities | Gross Amounts Offset in the Condensed Consolidated Balance Sheets | Net Amounts Presented in the Condensed Consolidated Balance Sheets | Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets | Net Amount | |||||||||||||||||||||||||||||||||||||
Counterparty Offsetting | Collateral | ||||||||||||||||||||||||||||||||||||||||
March 31, 2022 | |||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||
Resale agreements (1) | $ | 14,011 | $ | — | $ | 14,011 | $ | — | $ | (14,011) | (2) | $ | — | ||||||||||||||||||||||||||||
Securities borrowed (3) | 570 | — | 570 | (361) | (202) | 7 | |||||||||||||||||||||||||||||||||||
Total | $ | 14,581 | $ | — | $ | 14,581 | $ | (361) | $ | (14,213) | $ | 7 | |||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||||
Securities loaned (4,5) | $ | 7,221 | $ | — | $ | 7,221 | $ | (361) | $ | (6,040) | $ | 820 | |||||||||||||||||||||||||||||
Secured short-term borrowings (6) | 1,850 | — | 1,850 | — | (1,850) | — | |||||||||||||||||||||||||||||||||||
Total | $ | 9,071 | $ | — | $ | 9,071 | $ | (361) | $ | (7,890) | $ | 820 | |||||||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||
Resale agreements (1) | $ | 13,096 | $ | — | $ | 13,096 | $ | — | $ | (13,096) | (2) | $ | — | ||||||||||||||||||||||||||||
Securities borrowed (3) | 582 | — | 582 | (383) | (195) | 4 | |||||||||||||||||||||||||||||||||||
Total | $ | 13,678 | $ | — | $ | 13,678 | $ | (383) | $ | (13,291) | $ | 4 | |||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||||
Securities loaned (4,5) | $ | 7,158 | $ | — | $ | 7,158 | $ | (383) | $ | (6,015) | $ | 760 | |||||||||||||||||||||||||||||
Secured short-term borrowings (6) | 1,850 | — | 1,850 | — | (1,850) | — | |||||||||||||||||||||||||||||||||||
Total | $ | 9,008 | $ | — | $ | 9,008 | $ | (383) | $ | (7,865) | $ | 760 |
March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Fair value of client securities available to be pledged | $ | 111,343 | $ | 120,306 | ||||||||||||||||||||||
Fair value of securities pledged for: | ||||||||||||||||||||||||||
Fulfillment of requirements with the Options Clearing Corporation (1) | $ | 16,442 | $ | 16,829 | ||||||||||||||||||||||
Fulfillment of client short sales | 6,320 | 5,934 | ||||||||||||||||||||||||
Securities lending to other broker-dealers | 6,144 | 6,269 | ||||||||||||||||||||||||
Collateral for short-term borrowings | 2,253 | 2,390 | ||||||||||||||||||||||||
Total collateral pledged to third parties | $ | 31,159 | $ | 31,422 |
March 31, 2022 | Level 1 | Level 2 | Level 3 | Balance at Fair Value | |||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Money market funds | $ | 15,112 | $ | — | $ | — | $ | 15,112 | |||||||||||||||
Commercial paper | — | 4,587 | — | 4,587 | |||||||||||||||||||
Total cash equivalents | 15,112 | 4,587 | — | 19,699 | |||||||||||||||||||
Investments segregated and on deposit for regulatory purposes: | |||||||||||||||||||||||
Certificates of deposit | — | 349 | — | 349 | |||||||||||||||||||
U.S. Government securities | — | 35,707 | — | 35,707 | |||||||||||||||||||
Total investments segregated and on deposit for regulatory purposes | — | 36,056 | — | 36,056 | |||||||||||||||||||
Available for sale securities: | |||||||||||||||||||||||
U.S. agency mortgage-backed securities | — | 201,534 | — | 201,534 | |||||||||||||||||||
U.S. Treasury securities | — | 31,833 | — | 31,833 | |||||||||||||||||||
Asset-backed securities | — | 18,423 | — | 18,423 | |||||||||||||||||||
Corporate debt securities | — | 14,608 | — | 14,608 | |||||||||||||||||||
U.S. state and municipal securities | — | 1,576 | — | 1,576 | |||||||||||||||||||
Non-agency commercial mortgage-backed securities | — | 1,161 | — | 1,161 | |||||||||||||||||||
Certificates of deposit | — | 1,296 | — | 1,296 | |||||||||||||||||||
Foreign government agency securities | — | 1,096 | — | 1,096 | |||||||||||||||||||
Commercial paper | — | 200 | — | 200 | |||||||||||||||||||
Other | — | 322 | — | 322 | |||||||||||||||||||
Total available for sale securities | — | 272,049 | — | 272,049 | |||||||||||||||||||
Other assets: | |||||||||||||||||||||||
Equity, corporate debt, and other securities | 865 | 59 | — | 924 | |||||||||||||||||||
Mutual funds and ETFs | 603 | — | — | 603 | |||||||||||||||||||
State and municipal debt obligations | — | 7 | — | 7 | |||||||||||||||||||
U.S. Government securities | — | 4 | — | 4 | |||||||||||||||||||
Total other assets | 1,468 | 70 | — | 1,538 | |||||||||||||||||||
Total assets | $ | 16,580 | $ | 312,762 | $ | — | $ | 329,342 | |||||||||||||||
Accrued expenses and other liabilities | $ | 1,331 | $ | 48 | $ | — | $ | 1,379 | |||||||||||||||
Total liabilities | $ | 1,331 | $ | 48 | $ | — | $ | 1,379 |
December 31, 2021 | Level 1 | Level 2 | Level 3 | Balance at Fair Value | |||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Money market funds | $ | 11,719 | $ | — | $ | — | $ | 11,719 | |||||||||||||||
Total cash equivalents | 11,719 | — | — | 11,719 | |||||||||||||||||||
Investments segregated and on deposit for regulatory purposes: | |||||||||||||||||||||||
Certificates of deposit | — | 350 | — | 350 | |||||||||||||||||||
U.S. Government securities | — | 36,349 | — | 36,349 | |||||||||||||||||||
Total investments segregated and on deposit for regulatory purposes | — | 36,699 | — | 36,699 | |||||||||||||||||||
Available for sale securities: | |||||||||||||||||||||||
U.S. agency mortgage-backed securities | — | 334,355 | — | 334,355 | |||||||||||||||||||
U.S. Treasury securities | — | 21,282 | — | 21,282 | |||||||||||||||||||
Asset-backed securities | — | 17,546 | — | 17,546 | |||||||||||||||||||
Corporate debt securities | — | 12,344 | — | 12,344 | |||||||||||||||||||
U.S. state and municipal securities | — | 1,687 | — | 1,687 | |||||||||||||||||||
Non-agency commercial mortgage-backed securities | — | 1,190 | — | 1,190 | |||||||||||||||||||
Certificates of deposit | — | 999 | — | 999 | |||||||||||||||||||
Foreign government agency securities | — | 425 | — | 425 | |||||||||||||||||||
Commercial paper | — | 200 | — | 200 | |||||||||||||||||||
Other | — | 26 | — | 26 | |||||||||||||||||||
Total available for sale securities | — | 390,054 | — | 390,054 | |||||||||||||||||||
Other assets: | |||||||||||||||||||||||
Equity, corporate debt, and other securities | 854 | 59 | — | 913 | |||||||||||||||||||
Mutual funds and ETFs | 636 | — | — | 636 | |||||||||||||||||||
State and municipal debt obligations | — | 32 | — | 32 | |||||||||||||||||||
U.S. Government securities | — | 3 | — | 3 | |||||||||||||||||||
Total other assets | 1,490 | 94 | — | 1,584 | |||||||||||||||||||
Total assets | $ | 13,209 | $ | 426,847 | $ | — | $ | 440,056 | |||||||||||||||
Accrued expenses and other liabilities | $ | 1,354 | $ | 45 | $ | — | $ | 1,399 | |||||||||||||||
Total liabilities | $ | 1,354 | $ | 45 | $ | — | $ | 1,399 |
March 31, 2022 | Carrying Amount | Level 1 | Level 2 | Level 3 | Balance at Fair Value | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 71,427 | $ | 71,427 | $ | — | $ | — | $ | 71,427 | |||||||||||||||||||
Cash and investments segregated and on deposit for regulatory purposes | 18,385 | 4,376 | 14,009 | — | 18,385 | ||||||||||||||||||||||||
Receivables from brokerage clients — net | 84,065 | — | 84,065 | — | 84,065 | ||||||||||||||||||||||||
Held to maturity securities: | |||||||||||||||||||||||||||||
U.S. agency mortgage-backed securities | 105,286 | — | 99,149 | — | 99,149 | ||||||||||||||||||||||||
Total held to maturity securities | 105,286 | — | 99,149 | — | 99,149 | ||||||||||||||||||||||||
Bank loans — net: | |||||||||||||||||||||||||||||
First Mortgages | 22,668 | — | 21,421 | — | 21,421 | ||||||||||||||||||||||||
HELOCs | 614 | — | 637 | — | 637 | ||||||||||||||||||||||||
Pledged asset lines | 13,716 | — | 13,716 | — | 13,716 | ||||||||||||||||||||||||
Other | 209 | — | 209 | — | 209 | ||||||||||||||||||||||||
Total bank loans — net | 37,207 | — | 35,983 | — | 35,983 | ||||||||||||||||||||||||
Other assets | 3,828 | — | 3,828 | — | 3,828 | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Bank deposits | $ | 465,827 | $ | — | $ | 465,827 | $ | — | $ | 465,827 | |||||||||||||||||||
Payables to brokerage clients | 125,307 | — | 125,307 | — | 125,307 | ||||||||||||||||||||||||
Accrued expenses and other liabilities | 8,492 | — | 8,492 | — | 8,492 | ||||||||||||||||||||||||
Short-term borrowings | 4,234 | — | 4,234 | — | 4,234 | ||||||||||||||||||||||||
Long-term debt | 21,782 | — | 21,257 | — | 21,257 | ||||||||||||||||||||||||
December 31, 2021 | Carrying Amount | Level 1 | Level 2 | Level 3 | Balance at Fair Value | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 51,256 | $ | 51,256 | $ | — | $ | — | $ | 51,256 | |||||||||||||||||||
Cash and investments segregated and on deposit for regulatory purposes | 17,246 | 4,151 | 13,095 | — | 17,246 | ||||||||||||||||||||||||
Receivables from brokerage clients — net | 90,560 | — | 90,560 | — | 90,560 | ||||||||||||||||||||||||
Bank loans — net: | |||||||||||||||||||||||||||||
First Mortgages | 21,077 | — | 21,027 | — | 21,027 | ||||||||||||||||||||||||
HELOCs | 646 | — | 668 | — | 668 | ||||||||||||||||||||||||
Pledged asset lines | 12,709 | — | 12,709 | — | 12,709 | ||||||||||||||||||||||||
Other | 204 | — | 204 | — | 204 | ||||||||||||||||||||||||
Total bank loans — net | 34,636 | — | 34,608 | — | 34,608 | ||||||||||||||||||||||||
Other assets | 3,561 | — | 3,561 | — | 3,561 | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Bank deposits | $ | 443,778 | $ | — | $ | 443,778 | $ | — | $ | 443,778 | |||||||||||||||||||
Payables to brokerage clients | 125,671 | — | 125,671 | — | 125,671 | ||||||||||||||||||||||||
Accrued expenses and other liabilities | 8,327 | — | 8,327 | — | 8,327 | ||||||||||||||||||||||||
Short-term borrowings | 4,855 | — | 4,855 | — | 4,855 | ||||||||||||||||||||||||
Long-term debt | 18,820 | — | 19,383 | — | 19,383 | ||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||
Total Declared | Per Share Amount | Total Declared | Per Share Amount | |||||||||||||||||||||||
Series A | $ | 5.0 | $ | 12.70 | $ | — | $ | — | ||||||||||||||||||
Series C (1) | — | — | 9.0 | 15.00 | ||||||||||||||||||||||
Series D | 11.2 | 14.88 | 11.2 | 14.88 | ||||||||||||||||||||||
Series E | 13.9 | 2,312.50 | 13.9 | 2,312.50 | ||||||||||||||||||||||
Series F | — | — | — | — | ||||||||||||||||||||||
Series G | 33.6 | 1,343.75 | 33.6 | 1,343.75 | ||||||||||||||||||||||
Series H | 25.0 | 1,000.00 | 22.2 | 888.89 | ||||||||||||||||||||||
Series I (2) | 22.5 | 1,000.00 | — | — | ||||||||||||||||||||||
Series J (3) | 6.7 | 11.13 | — | — | ||||||||||||||||||||||
Series K (4) | — | — | — | — | ||||||||||||||||||||||
Total | $ | 117.9 | $ | 89.9 |
Total AOCI | |||||
Balance at December 31, 2020 | $ | 5,394 | |||
Available for sale securities: | |||||
Net unrealized gain (loss), net of tax expense (benefit) of $(1,409) | (4,508) | ||||
Other reclassifications included in other revenue, net of tax expense (benefit) of $(2) | (8) | ||||
Balance at March 31, 2021 | $ | 878 | |||
Balance at December 31, 2021 | $ | (1,109) | |||
Available for sale securities: | |||||
Net unrealized gain (loss), excluding transfers to held to maturity, net of tax expense (benefit) of $(3,137) | (9,998) | ||||
Net unrealized loss on securities transferred to held to maturity, net of tax expense (benefit) of $579 (1) | 1,850 | ||||
Other reclassifications included in other revenue, net of tax expense (benefit) of $(3) | (9) | ||||
Held to maturity securities: | |||||
Net unrealized loss on securities transferred from available for sale, net of tax expense (benefit) of $(579) (1) | (1,850) | ||||
Amortization of amounts previously recorded upon transfer from available for sale, net of tax expense (benefit) of $21 | 71 | ||||
Balance at March 31, 2022 | $ | (11,045) |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Common Stock | Nonvoting Common Stock | Common Stock | Nonvoting Common Stock | |||||||||||
Basic earnings per share: | ||||||||||||||
Numerator | ||||||||||||||
Net income | $ | 1,344 | $ | 58 | $ | 1,422 | $ | 62 | ||||||
Preferred stock dividends and other (1) | (119) | (5) | (92) | (4) | ||||||||||
Net income available to common stockholders | $ | 1,225 | $ | 53 | $ | 1,330 | $ | 58 | ||||||
Denominator | ||||||||||||||
Weighted-average common shares outstanding — basic | 1,815 | 79 | 1,803 | 79 | ||||||||||
Basic earnings per share | $ | .67 | $ | .67 | $ | .74 | $ | .74 | ||||||
Diluted earnings per share: | ||||||||||||||
Numerator | ||||||||||||||
Net income available to common stockholders | $ | 1,225 | $ | 53 | $ | 1,330 | $ | 58 | ||||||
Reallocation of net income available to common stockholders as a result of conversion of nonvoting to voting shares | 53 | — | 58 | — | ||||||||||
Allocation of net income available to common stockholders: | $ | 1,278 | $ | 53 | $ | 1,388 | $ | 58 | ||||||
Denominator | ||||||||||||||
Weighted-average common shares outstanding — basic | 1,815 | 79 | 1,803 | 79 | ||||||||||
Conversion of nonvoting shares to voting shares | 79 | — | 79 | — | ||||||||||
Common stock equivalent shares related to stock incentive plans | 11 | — | 10 | — | ||||||||||
Weighted-average common shares outstanding — diluted (2) | 1,905 | 79 | 1,892 | 79 | ||||||||||
Diluted earnings per share | $ | .67 | $ | .67 | $ | .73 | $ | .73 |
Actual | Minimum to be Well Capitalized | Minimum Capital Requirement | ||||||||||||||||||||||||||||||||||||
March 31, 2022 | Amount | Ratio | Amount | Ratio | Amount | Ratio (1) | ||||||||||||||||||||||||||||||||
CSC | ||||||||||||||||||||||||||||||||||||||
Common Equity Tier 1 Risk-Based Capital | $ | 29,119 | 18.9 | % | N/A | $ | 6,946 | 4.5 | % | |||||||||||||||||||||||||||||
Tier 1 Risk-Based Capital | 39,813 | 25.8 | % | N/A | 9,261 | 6.0 | % | |||||||||||||||||||||||||||||||
Total Risk-Based Capital | 39,850 | 25.8 | % | N/A | 12,348 | 8.0 | % | |||||||||||||||||||||||||||||||
Tier 1 Leverage | 39,813 | 6.1 | % | N/A | 25,937 | 4.0 | % | |||||||||||||||||||||||||||||||
Supplementary Leverage Ratio | 39,813 | 6.1 | % | N/A | 19,613 | 3.0 | % | |||||||||||||||||||||||||||||||
CSB | ||||||||||||||||||||||||||||||||||||||
Common Equity Tier 1 Risk-Based Capital | $ | 30,672 | 27.1 | % | $ | 7,352 | 6.5 | % | $ | 5,090 | 4.5 | % | ||||||||||||||||||||||||||
Tier 1 Risk-Based Capital | 30,672 | 27.1 | % | 9,049 | 8.0 | % | 6,786 | 6.0 | % | |||||||||||||||||||||||||||||
Total Risk-Based Capital | 30,701 | 27.1 | % | 11,311 | 10.0 | % | 9,049 | 8.0 | % | |||||||||||||||||||||||||||||
Tier 1 Leverage | 30,672 | 7.1 | % | 21,581 | 5.0 | % | 17,265 | 4.0 | % | |||||||||||||||||||||||||||||
Supplementary Leverage Ratio | 30,672 | 7.0 | % | N/A | 13,076 | 3.0 | % | |||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||
CSC | ||||||||||||||||||||||||||||||||||||||
Common Equity Tier 1 Risk-Based Capital | $ | 27,967 | 19.7 | % | N/A | $ | 6,389 | 4.5 | % | |||||||||||||||||||||||||||||
Tier 1 Risk-Based Capital | 37,921 | 26.7 | % | N/A | 8,518 | 6.0 | % | |||||||||||||||||||||||||||||||
Total Risk-Based Capital | 37,950 | 26.7 | % | N/A | 11,358 | 8.0 | % | |||||||||||||||||||||||||||||||
Tier 1 Leverage | 37,921 | 6.2 | % | N/A | 24,346 | 4.0 | % | |||||||||||||||||||||||||||||||
Supplementary Leverage Ratio | 37,921 | 6.2 | % | N/A | 18,434 | 3.0 | % | |||||||||||||||||||||||||||||||
CSB | ||||||||||||||||||||||||||||||||||||||
Common Equity Tier 1 Risk-Based Capital | $ | 28,014 | 26.8 | % | $ | 6,787 | 6.5 | % | $ | 4,698 | 4.5 | % | ||||||||||||||||||||||||||
Tier 1 Risk-Based Capital | 28,014 | 26.8 | % | 8,353 | 8.0 | % | 6,265 | 6.0 | % | |||||||||||||||||||||||||||||
Total Risk-Based Capital | 28,033 | 26.8 | % | 10,441 | 10.0 | % | 8,353 | 8.0 | % | |||||||||||||||||||||||||||||
Tier 1 Leverage | 28,014 | 7.1 | % | 19,790 | 5.0 | % | 15,832 | 4.0 | % | |||||||||||||||||||||||||||||
Supplementary Leverage Ratio | 28,014 | 7.0 | % | N/A | 12,016 | 3.0 | % | |||||||||||||||||||||||||||||||
March 31, 2022 | December 31, 2021 | |||||||||||||
CS&Co | ||||||||||||||
Net capital | $ | 5,156 | $ | 5,231 | ||||||||||
Minimum dollar requirement | 0.250 | 0.250 | ||||||||||||
2% of aggregate debit balances | 918 | 941 | ||||||||||||
Net capital in excess of required net capital | $ | 4,238 | $ | 4,290 | ||||||||||
TDAC | ||||||||||||||
Net capital | $ | 5,325 | $ | 5,337 | ||||||||||
Minimum dollar requirement | 1.500 | 1.500 | ||||||||||||
2% of aggregate debit balances | 903 | 1,007 | ||||||||||||
Net capital in excess of required net capital | $ | 4,422 | $ | 4,330 | ||||||||||
TD Ameritrade, Inc. | ||||||||||||||
Net capital | $ | 679 | $ | 711 | ||||||||||
Minimum dollar requirement | 0.250 | 0.250 | ||||||||||||
2% of aggregate debit balances | — | — | ||||||||||||
Net capital in excess of required net capital | $ | 679 | $ | 711 |
Investor Services | Advisor Services | Total | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||
Net Revenues | |||||||||||||||||||||||||||||||||||
Net interest revenue | $ | 1,574 | $ | 1,454 | $ | 609 | $ | 457 | $ | 2,183 | $ | 1,911 | |||||||||||||||||||||||
Asset management and administration fees | 781 | 742 | 287 | 274 | 1,068 | 1,016 | |||||||||||||||||||||||||||||
Trading revenue | 844 | 1,097 | 119 | 119 | 963 | 1,216 | |||||||||||||||||||||||||||||
Bank deposit account fees | 200 | 254 | 94 | 97 | 294 | 351 | |||||||||||||||||||||||||||||
Other | 127 | 178 | 37 | 43 | 164 | 221 | |||||||||||||||||||||||||||||
Total net revenues | 3,526 | 3,725 | 1,146 | 990 | 4,672 | 4,715 | |||||||||||||||||||||||||||||
Expenses Excluding Interest | 2,131 | 2,109 | 702 | 646 | 2,833 | 2,755 | |||||||||||||||||||||||||||||
Income before taxes on income | $ | 1,395 | $ | 1,616 | $ | 444 | $ | 344 | $ | 1,839 | $ | 1,960 |
Month | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Publicly Announced Program | ||||||||||||||||||||||
January: | ||||||||||||||||||||||||||
Share repurchase program | — | $ | — | — | $ | 1,780 | ||||||||||||||||||||
Employee transactions (1) | 84 | $ | 95.08 | N/A | N/A | |||||||||||||||||||||
February: | ||||||||||||||||||||||||||
Share repurchase program | — | $ | — | — | $ | 1,780 | ||||||||||||||||||||
Employee transactions (1) | 3 | $ | 89.40 | N/A | N/A | |||||||||||||||||||||
March: | ||||||||||||||||||||||||||
Share repurchase program | — | $ | — | — | $ | 1,780 | ||||||||||||||||||||
Employee transactions (1) | 436 | $ | 80.16 | N/A | N/A | |||||||||||||||||||||
Total: | ||||||||||||||||||||||||||
Share repurchase program | — | $ | — | — | $ | 1,780 | ||||||||||||||||||||
Employee transactions (1) | 523 | $ | 82.61 | N/A | N/A |
Exhibit Number | Exhibit | |||||||
3.26 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | (1) | |||||||
32.2 | (1) | |||||||
101.INS | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | (2) | ||||||
101.SCH | Inline XBRL Taxonomy Extension Schema | (2) | ||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation | (2) | ||||||
101.DEF | Inline XBRL Extension Definition | (2) | ||||||
101.LAB | Inline XBRL Taxonomy Extension Label | (2) | ||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation | (2) | ||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |||||||
(1) | Furnished as an exhibit to this Quarterly Report on Form 10-Q. | |||||||
(2) | Attached as Exhibit 101 to this Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2022 are the following materials formatted in Inline XBRL (Extensible Business Reporting Language) (i) the Condensed Consolidated Statements of Income, (ii) the Condensed Consolidated Statements of Comprehensive Income, (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statements of Stockholders’ Equity, (v) the Condensed Consolidated Statements of Cash Flows, and (vi) Notes to Condensed Consolidated Financial Statements. |
THE CHARLES SCHWAB CORPORATION | |||||||||||
(Registrant) | |||||||||||
Date: | May 9, 2022 | /s/ Peter Crawford | |||||||||
Peter Crawford | |||||||||||
Managing Director and Chief Financial Officer |
1 Year Charles Schwab Chart |
1 Month Charles Schwab Chart |
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