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Name | Symbol | Market | Type |
---|---|---|---|
Schwab (Charles) Corp. Prfd C | NYSE:SCHWPC | NYSE | Preference Share |
Price Change | % Change | Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0 | - |
☒
|
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 6.00% Non-Cumulative Preferred Stock, Series C
|
SCHW PrC
|
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
|
|
|
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Item 1.
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23-24
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25-55
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Item 2.
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1-17
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Item 3.
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Item 4.
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Item 1.
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Item 1A.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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•
|
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™).
|
•
|
Maximizing our market valuation and stockholder returns over time; our belief that developing trusted relationships will translate into more client assets which drives revenue and, along with expense discipline and thoughtful capital management, generates earnings growth and builds stockholder value (see Introduction in Part I, Item 2);
|
•
|
Ongoing investments to drive efficiency and scale (see Overview);
|
•
|
Capital returns to stockholders (see Overview);
|
•
|
The acquisition of assets of
USAA’s Investment Management Company (USAA-IMCO) and entering into a referral agreement (see Overview);
|
•
|
2019 capital expenditures (see Results of Operations);
|
•
|
The phase-out of the use of LIBOR (see Risk Management);
|
•
|
The expected impact of new accounting standards not yet adopted (see New Accounting Standards in Part I, Item 1, Financial Information – Notes to Condensed Consolidated Financial Statements (Item 1) – Note 2);
|
•
|
The likelihood of indemnification and guarantee payment obligations (see Commitments and Contingencies in Item 1 – Note 10); and
|
•
|
The impact of legal proceedings and regulatory matters (see Commitments and Contingencies in Item 1 – Note 10 and Legal Proceedings in Part II, Item 1).
|
•
|
General market conditions, including the level of interest rates, equity valuations, and trading activity;
|
•
|
Our ability to attract and retain clients, develop trusted relationships, and grow client assets;
|
•
|
Client use of our advisory solutions and other products and services;
|
•
|
The level of client assets, including cash balances;
|
•
|
Competitive pressure on pricing, including deposit rates;
|
•
|
Client sensitivity to interest rates;
|
•
|
Regulatory guidance;
|
•
|
Capital and liquidity needs and management;
|
•
|
Our ability to manage expenses;
|
•
|
Our ability to develop and launch new products, services, and capabilities, as well as implement infrastructure, in a timely and successful manner;
|
•
|
The timing and the ability of us and USAA-IMCO to satisfy the closing conditions in the purchase agreement, including regulatory approvals and the implementation of conversion plans;
|
•
|
The timing of campus expansion work and technology projects;
|
•
|
Adverse developments in litigation or regulatory matters and any related charges; and
|
•
|
Potential breaches of contractual terms for which we have indemnification and guarantee obligations.
|
|
Three Months Ended
June 30, |
|
Percent
Change |
|
Six Months Ended
June 30, |
Percent
Change |
||||||||||||||
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
||||||||||||
Client Metrics
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net new client assets (in billions)
(1)
|
$
|
37.2
|
|
|
$
|
43.9
|
|
|
(15
|
)%
|
|
$
|
88.9
|
|
|
$
|
25.1
|
|
N/M
|
|
Core net new client assets (in billions)
|
$
|
37.2
|
|
|
$
|
53.4
|
|
|
(30
|
)%
|
|
$
|
88.9
|
|
|
$
|
119.0
|
|
(25
|
)%
|
Client assets (in billions, at quarter end)
|
$
|
3,702.4
|
|
|
$
|
3,397.0
|
|
|
9
|
%
|
|
|
|
|
|
|||||
Average client assets (in billions)
|
$
|
3,631.1
|
|
|
$
|
3,370.4
|
|
|
8
|
%
|
|
$
|
3,548.4
|
|
|
$
|
3,376.2
|
|
5
|
%
|
New brokerage accounts (in thousands)
|
386
|
|
|
384
|
|
|
1
|
%
|
|
772
|
|
|
827
|
|
(7
|
)%
|
||||
Active brokerage accounts (in thousands, at quarter end)
|
11,967
|
|
|
11,202
|
|
|
7
|
%
|
|
|
|
|
|
|||||||
Assets receiving ongoing advisory services (in billions,
at quarter end) |
$
|
1,938.2
|
|
|
$
|
1,768.7
|
|
|
10
|
%
|
|
|
|
|
|
|||||
Client cash as a percentage of client assets (at quarter end)
|
10.9
|
%
|
|
10.7
|
%
|
|
|
|
|
|
|
|
|
|||||||
Company Financial Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total net revenues
|
$
|
2,681
|
|
|
$
|
2,486
|
|
|
8
|
%
|
|
$
|
5,404
|
|
|
$
|
4,884
|
|
11
|
%
|
Total expenses excluding interest
|
1,445
|
|
|
1,355
|
|
|
7
|
%
|
|
2,904
|
|
|
2,751
|
|
6
|
%
|
||||
Income before taxes on income
|
1,236
|
|
|
1,131
|
|
|
9
|
%
|
|
2,500
|
|
|
2,133
|
|
17
|
%
|
||||
Taxes on income
|
299
|
|
|
265
|
|
|
13
|
%
|
|
599
|
|
|
484
|
|
24
|
%
|
||||
Net income
|
937
|
|
|
866
|
|
|
8
|
%
|
|
1,901
|
|
|
1,649
|
|
15
|
%
|
||||
Preferred stock dividends and other
|
50
|
|
|
53
|
|
|
(6
|
)%
|
|
89
|
|
|
90
|
|
(1
|
)%
|
||||
Net income available to common stockholders
|
$
|
887
|
|
|
$
|
813
|
|
|
9
|
%
|
|
$
|
1,812
|
|
|
$
|
1,559
|
|
16
|
%
|
Earnings per common share — diluted
|
$
|
.66
|
|
|
$
|
.60
|
|
|
10
|
%
|
|
$
|
1.35
|
|
|
$
|
1.14
|
|
18
|
%
|
Net revenue growth from prior year
|
8
|
%
|
|
17
|
%
|
|
|
|
|
11
|
%
|
|
16
|
%
|
|
|||||
Pre-tax profit margin
|
46.1
|
%
|
|
45.5
|
%
|
|
|
|
|
46.3
|
%
|
|
43.7
|
%
|
|
|||||
Return on average common stockholders’ equity
|
19
|
%
|
|
19
|
%
|
|
|
|
|
20
|
%
|
|
19
|
%
|
|
|||||
Expenses excluding interest as a percentage of average client
assets (annualized) |
0.16
|
%
|
|
0.16
|
%
|
|
|
|
0.17
|
%
|
|
0.16
|
%
|
|
||||||
Consolidated Tier 1 Leverage Ratio (at quarter end)
|
7.3
|
%
|
|
7.6
|
%
|
|
|
|
|
|
|
|
|
|
|
2019
|
|
2018
|
|||||||||||
Three Months Ended June 30,
|
Percent
Change |
|
Amount
|
|
% of
Total Net Revenues |
|
Amount
|
|
% of
Total Net Revenues |
|||||||
Net interest revenue
|
|
|
|
|
|
|
|
|
|
|||||||
Interest revenue
|
21
|
%
|
|
$
|
1,927
|
|
|
72
|
%
|
|
$
|
1,590
|
|
|
64
|
%
|
Interest expense
|
74
|
%
|
|
(318
|
)
|
|
(12
|
)%
|
|
(183
|
)
|
|
(7
|
)%
|
||
Net interest revenue
|
14
|
%
|
|
1,609
|
|
|
60
|
%
|
|
1,407
|
|
|
57
|
%
|
||
Asset management and administration fees
|
|
|
|
|
|
|
|
|
|
|||||||
Mutual funds, ETFs, and collective trust funds (CTFs)
(1)
|
(9
|
)%
|
|
428
|
|
|
16
|
%
|
|
469
|
|
|
19
|
%
|
||
Advice solutions
|
4
|
%
|
|
295
|
|
|
11
|
%
|
|
283
|
|
|
11
|
%
|
||
Other
(1)
|
2
|
%
|
|
63
|
|
|
2
|
%
|
|
62
|
|
|
3
|
%
|
||
Asset management and administration fees
|
(3
|
)%
|
|
786
|
|
|
29
|
%
|
|
814
|
|
|
33
|
%
|
||
Trading revenue
|
|
|
|
|
|
|
|
|
|
|||||||
Commissions
|
(1
|
)%
|
|
155
|
|
|
5
|
%
|
|
157
|
|
|
6
|
%
|
||
Principal transactions
|
(17
|
)%
|
|
19
|
|
|
1
|
%
|
|
23
|
|
|
1
|
%
|
||
Trading revenue
|
(3
|
)%
|
|
174
|
|
|
6
|
%
|
|
180
|
|
|
7
|
%
|
||
Other
|
32
|
%
|
|
112
|
|
|
5
|
%
|
|
85
|
|
|
3
|
%
|
||
Total net revenues
|
8
|
%
|
|
$
|
2,681
|
|
|
100
|
%
|
|
$
|
2,486
|
|
|
100
|
%
|
|
|
|
2019
|
|
2018
|
|||||||||||
Six Months Ended June 30,
|
Percent
Change |
|
Amount
|
|
% of
Total Net Revenues |
|
Amount
|
|
% of
Total Net Revenues |
|||||||
Net interest revenue
|
|
|
|
|
|
|
|
|
|
|||||||
Interest revenue
|
30
|
%
|
|
$
|
3,925
|
|
|
73
|
%
|
|
$
|
3,011
|
|
|
62
|
%
|
Interest expense
|
86
|
%
|
|
(635
|
)
|
|
(12
|
)%
|
|
(341
|
)
|
|
(7
|
)%
|
||
Net interest revenue
|
23
|
%
|
|
3,290
|
|
|
61
|
%
|
|
2,670
|
|
|
55
|
%
|
||
Asset management and administration fees
|
|
|
|
|
|
|
|
|
|
|||||||
Mutual funds, ETFs, and collective trust funds (CTFs)
(1)
|
(13
|
)%
|
|
842
|
|
|
16
|
%
|
|
973
|
|
|
20
|
%
|
||
Advice solutions
|
1
|
%
|
|
573
|
|
|
11
|
%
|
|
565
|
|
|
12
|
%
|
||
Other
(1)
|
(1
|
)%
|
|
126
|
|
|
2
|
%
|
|
127
|
|
|
2
|
%
|
||
Asset management and administration fees
|
(7
|
)%
|
|
1,541
|
|
|
29
|
%
|
|
1,665
|
|
|
34
|
%
|
||
Trading revenue
|
|
|
|
|
|
|
|
|
|
|||||||
Commissions
|
(8
|
)%
|
|
318
|
|
|
6
|
%
|
|
346
|
|
|
7
|
%
|
||
Principal transactions
|
17
|
%
|
|
41
|
|
|
1
|
%
|
|
35
|
|
|
1
|
%
|
||
Trading revenue
|
(6
|
)%
|
|
359
|
|
|
7
|
%
|
|
381
|
|
|
8
|
%
|
||
Other
|
27
|
%
|
|
214
|
|
|
3
|
%
|
|
168
|
|
|
3
|
%
|
||
Total net revenues
|
11
|
%
|
|
$
|
5,404
|
|
|
100
|
%
|
|
$
|
4,884
|
|
|
100
|
%
|
|
2019
|
|
2018
|
||||||||||||||||||
Three Months Ended June 30,
|
Average Balance
|
|
Interest Revenue/ Expense
|
|
Average Yield/ Rate
|
|
Average Balance
|
|
Interest Revenue/ Expense
|
|
Average Yield/ Rate
|
||||||||||
Interest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
26,146
|
|
|
$
|
158
|
|
|
2.39
|
%
|
|
$
|
12,764
|
|
|
$
|
57
|
|
|
1.80
|
%
|
Cash and investments segregated
|
14,588
|
|
|
89
|
|
|
2.41
|
%
|
|
11,825
|
|
|
50
|
|
|
1.68
|
%
|
||||
Broker-related receivables
(1)
|
199
|
|
|
—
|
|
|
1.38
|
%
|
|
378
|
|
|
2
|
|
|
1.58
|
%
|
||||
Receivables from brokerage clients
|
19,423
|
|
|
217
|
|
|
4.42
|
%
|
|
19,775
|
|
|
204
|
|
|
4.09
|
%
|
||||
Available for sale securities
(2)
|
56,020
|
|
|
386
|
|
|
2.74
|
%
|
|
52,682
|
|
|
291
|
|
|
2.19
|
%
|
||||
Held to maturity securities
|
132,738
|
|
|
899
|
|
|
2.70
|
%
|
|
129,825
|
|
|
812
|
|
|
2.49
|
%
|
||||
Bank loans
|
16,560
|
|
|
148
|
|
|
3.58
|
%
|
|
16,530
|
|
|
138
|
|
|
3.32
|
%
|
||||
Total interest-earning assets
|
265,674
|
|
|
1,897
|
|
|
2.84
|
%
|
|
243,779
|
|
|
1,554
|
|
|
2.54
|
%
|
||||
Other interest revenue
|
|
|
30
|
|
|
|
|
|
|
36
|
|
|
|
||||||||
Total interest-earning assets
|
$
|
265,674
|
|
|
$
|
1,927
|
|
|
2.88
|
%
|
|
$
|
243,779
|
|
|
$
|
1,590
|
|
|
2.60
|
%
|
Funding sources
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank deposits
|
$
|
210,811
|
|
|
$
|
224
|
|
|
0.43
|
%
|
|
$
|
193,029
|
|
|
$
|
117
|
|
|
0.24
|
%
|
Payables to brokerage clients
|
23,034
|
|
|
24
|
|
|
0.42
|
%
|
|
21,729
|
|
|
14
|
|
|
0.26
|
%
|
||||
Short-term borrowings
(1)
|
3
|
|
|
—
|
|
|
2.68
|
%
|
|
1,429
|
|
|
7
|
|
|
1.94
|
%
|
||||
Long-term debt
|
7,090
|
|
|
63
|
|
|
3.58
|
%
|
|
4,961
|
|
|
43
|
|
|
3.47
|
%
|
||||
Total interest-bearing liabilities
|
240,938
|
|
|
311
|
|
|
0.52
|
%
|
|
221,148
|
|
|
181
|
|
|
0.33
|
%
|
||||
Non-interest-bearing funding sources
|
24,736
|
|
|
|
|
|
|
22,631
|
|
|
|
|
|
||||||||
Other interest expense
|
|
|
7
|
|
|
|
|
|
|
2
|
|
|
|
||||||||
Total funding sources
|
$
|
265,674
|
|
|
$
|
318
|
|
|
0.48
|
%
|
|
$
|
243,779
|
|
|
$
|
183
|
|
|
0.30
|
%
|
Net interest revenue
|
|
|
$
|
1,609
|
|
|
2.40
|
%
|
|
|
|
$
|
1,407
|
|
|
2.30
|
%
|
|
2019
|
|
2018
|
||||||||||||||||||
Six Months Ended June 30,
|
Average Balance
|
|
Interest Revenue/ Expense
|
|
Average Yield/ Rate
|
|
Average Balance
|
|
Interest Revenue/ Expense
|
|
Average Yield/ Rate
|
||||||||||
Interest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
25,568
|
|
|
$
|
309
|
|
|
2.41
|
%
|
|
$
|
14,912
|
|
|
$
|
123
|
|
|
1.65
|
%
|
Cash and investments segregated
|
14,075
|
|
|
172
|
|
|
2.43
|
%
|
|
12,891
|
|
|
98
|
|
|
1.51
|
%
|
||||
Broker-related receivables
|
228
|
|
|
2
|
|
|
2.15
|
%
|
|
333
|
|
|
3
|
|
|
1.47
|
%
|
||||
Receivables from brokerage clients
|
19,199
|
|
|
431
|
|
|
4.46
|
%
|
|
19,326
|
|
|
383
|
|
|
3.95
|
%
|
||||
Available for sale securities
(2)
|
61,407
|
|
|
837
|
|
|
2.72
|
%
|
|
51,533
|
|
|
531
|
|
|
2.06
|
%
|
||||
Held to maturity securities
|
132,583
|
|
|
1,815
|
|
|
2.73
|
%
|
|
125,641
|
|
|
1,533
|
|
|
2.44
|
%
|
||||
Bank loans
|
16,569
|
|
|
297
|
|
|
3.59
|
%
|
|
16,493
|
|
|
268
|
|
|
3.25
|
%
|
||||
Total interest-earning assets
|
269,629
|
|
|
3,863
|
|
|
2.86
|
%
|
|
241,129
|
|
|
2,939
|
|
|
2.43
|
%
|
||||
Other interest revenue
|
|
|
62
|
|
|
|
|
|
|
72
|
|
|
|
||||||||
Total interest-earning assets
|
$
|
269,629
|
|
|
$
|
3,925
|
|
|
2.90
|
%
|
|
$
|
241,129
|
|
|
$
|
3,011
|
|
|
2.49
|
%
|
Funding sources
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank deposits
|
$
|
215,374
|
|
|
$
|
450
|
|
|
0.42
|
%
|
|
$
|
185,052
|
|
|
$
|
181
|
|
|
0.20
|
%
|
Payables to brokerage clients
|
22,611
|
|
|
47
|
|
|
0.42
|
%
|
|
22,097
|
|
|
21
|
|
|
0.20
|
%
|
||||
Short-term borrowings
(1)
|
17
|
|
|
—
|
|
|
2.50
|
%
|
|
6,770
|
|
|
54
|
|
|
1.59
|
%
|
||||
Long-term debt
|
6,968
|
|
|
125
|
|
|
3.60
|
%
|
|
4,678
|
|
|
80
|
|
|
3.42
|
%
|
||||
Total interest-bearing liabilities
|
244,970
|
|
|
622
|
|
|
0.51
|
%
|
|
218,597
|
|
|
336
|
|
|
0.31
|
%
|
||||
Non-interest-bearing funding sources
|
24,659
|
|
|
|
|
|
|
22,532
|
|
|
|
|
|
||||||||
Other interest expense
|
|
|
13
|
|
|
|
|
|
|
5
|
|
|
|
||||||||
Total funding sources
|
$
|
269,629
|
|
|
$
|
635
|
|
|
0.47
|
%
|
|
$
|
241,129
|
|
|
$
|
341
|
|
|
0.28
|
%
|
Net interest revenue
|
|
|
$
|
3,290
|
|
|
2.43
|
%
|
|
|
|
$
|
2,670
|
|
|
2.21
|
%
|
Three Months Ended June 30,
|
2019
|
|
2018
|
||||||||||||||||||
Average
Client Assets |
|
Revenue
|
|
Average
Fee |
|
Average
Client Assets |
|
Revenue
|
|
Average
Fee |
|||||||||||
Schwab money market funds
|
$
|
161,998
|
|
|
$
|
123
|
|
|
0.30
|
%
|
|
$
|
139,968
|
|
|
$
|
147
|
|
|
0.42
|
%
|
Schwab equity and bond funds, ETFs, and CTFs
(1)
|
261,773
|
|
|
74
|
|
|
0.11
|
%
|
|
218,877
|
|
|
76
|
|
|
0.14
|
%
|
||||
Mutual Fund OneSource
®
and other non-transaction fee funds
|
192,227
|
|
|
152
|
|
|
0.32
|
%
|
|
217,867
|
|
|
175
|
|
|
0.32
|
%
|
||||
Other third-party mutual funds and ETFs
(2)
|
471,638
|
|
|
79
|
|
|
0.07
|
%
|
|
325,061
|
|
|
71
|
|
|
0.09
|
%
|
||||
Total mutual funds, ETFs and CTFs
(1,3)
|
$
|
1,087,636
|
|
|
428
|
|
|
0.16
|
%
|
|
$
|
901,773
|
|
|
469
|
|
|
0.21
|
%
|
||
Advice solutions
(3)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fee-based
|
$
|
243,050
|
|
|
295
|
|
|
0.49
|
%
|
|
$
|
225,879
|
|
|
283
|
|
|
0.50
|
%
|
||
Non-fee-based
|
69,274
|
|
|
—
|
|
|
—
|
|
|
62,109
|
|
|
—
|
|
|
—
|
|
||||
Total advice solutions
|
$
|
312,324
|
|
|
295
|
|
|
0.38
|
%
|
|
$
|
287,988
|
|
|
283
|
|
|
0.39
|
%
|
||
Other balance-based fees
(1,4)
|
408,929
|
|
|
54
|
|
|
0.05
|
%
|
|
372,029
|
|
|
51
|
|
|
0.05
|
%
|
||||
Other
(5)
|
|
|
9
|
|
|
|
|
|
|
11
|
|
|
|
||||||||
Total asset management and administration fees
|
|
|
$
|
786
|
|
|
|
|
|
|
$
|
814
|
|
|
|
|
2019
|
|
2018
|
||||||||||||||||||
Six Months Ended June 30,
|
Average
Client Assets |
|
Revenue
|
|
Average
Fee |
|
Average
Client Assets |
|
Revenue
|
|
Average
Fee |
||||||||||
Schwab money market funds
|
$
|
160,133
|
|
|
$
|
245
|
|
|
0.31
|
%
|
|
$
|
148,165
|
|
|
$
|
329
|
|
|
0.45
|
%
|
Schwab equity and bond funds, ETFs, and CTFs
(1)
|
253,048
|
|
|
144
|
|
|
0.11
|
%
|
|
215,153
|
|
|
150
|
|
|
0.14
|
%
|
||||
Mutual Fund OneSource
®
and other non-transaction fee funds
|
189,725
|
|
|
299
|
|
|
0.32
|
%
|
|
220,268
|
|
|
353
|
|
|
0.32
|
%
|
||||
Other third-party mutual funds and ETFs
(2)
|
462,050
|
|
|
154
|
|
|
0.07
|
%
|
|
322,391
|
|
|
141
|
|
|
0.09
|
%
|
||||
Total mutual funds, ETFs and CTFs
(1,3)
|
$
|
1,064,956
|
|
|
842
|
|
|
0.16
|
%
|
|
$
|
905,977
|
|
|
973
|
|
|
0.22
|
%
|
||
Advice solutions
(3)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fee-based
|
$
|
236,722
|
|
|
573
|
|
|
0.49
|
%
|
|
$
|
225,320
|
|
|
565
|
|
|
0.51
|
%
|
||
Non-fee-based
|
68,015
|
|
|
—
|
|
|
—
|
|
|
60,964
|
|
|
—
|
|
|
—
|
|
||||
Total advice solutions
|
$
|
304,737
|
|
|
573
|
|
|
0.38
|
%
|
|
$
|
286,284
|
|
|
565
|
|
|
0.40
|
%
|
||
Other balance-based fees
(1,4)
|
400,560
|
|
|
106
|
|
|
0.05
|
%
|
|
391,236
|
|
|
106
|
|
|
0.05
|
%
|
||||
Other
(5)
|
|
|
20
|
|
|
|
|
|
|
21
|
|
|
|
||||||||
Total asset management and administration fees
|
|
|
$
|
1,541
|
|
|
|
|
|
|
$
|
1,665
|
|
|
|
|
Schwab Money
Market Funds |
|
Schwab Equity and
Bond Funds, ETFs, and CTFs (1) |
|
Mutual Fund OneSource
®
and Other NTF funds |
||||||||||||||||||
Three Months Ended June 30,
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||
Balance at beginning of period
|
$
|
159,669
|
|
|
$
|
144,995
|
|
|
$
|
240,887
|
|
|
$
|
203,191
|
|
|
$
|
195,116
|
|
|
$
|
221,614
|
|
Net inflows (outflows)
|
7,539
|
|
|
(11,319
|
)
|
|
6,133
|
|
|
9,671
|
|
|
(4,937
|
)
|
|
(13,348
|
)
|
||||||
Net market gains (losses) and other
|
856
|
|
|
490
|
|
|
7,440
|
|
|
4,021
|
|
|
7,598
|
|
|
4,247
|
|
||||||
Balance at end of period
|
$
|
168,064
|
|
|
$
|
134,166
|
|
|
$
|
254,460
|
|
|
$
|
216,883
|
|
|
$
|
197,777
|
|
|
$
|
212,513
|
|
|
Schwab Money
Market Funds |
|
Schwab Equity and
Bond Funds, ETFs, and CTFs (1) |
|
Mutual Fund OneSource
®
and Other NTF funds |
||||||||||||||||||
Six Months Ended June 30,
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||
Balance at beginning of period
|
$
|
153,472
|
|
|
$
|
163,650
|
|
|
$
|
209,471
|
|
|
$
|
196,784
|
|
|
$
|
180,532
|
|
|
$
|
225,202
|
|
Net inflows (outflows)
|
12,691
|
|
|
(30,441
|
)
|
|
13,381
|
|
|
18,456
|
|
|
(11,143
|
)
|
|
(18,277
|
)
|
||||||
Net market gains (losses) and other
|
1,901
|
|
|
957
|
|
|
31,608
|
|
|
1,643
|
|
|
28,388
|
|
|
5,588
|
|
||||||
Balance at end of period
|
$
|
168,064
|
|
|
$
|
134,166
|
|
|
$
|
254,460
|
|
|
$
|
216,883
|
|
|
$
|
197,777
|
|
|
$
|
212,513
|
|
|
Three Months Ended June 30,
|
|
Percent
Change |
|
Six Months Ended
June 30, |
|
Percent
Change |
||||||||||||||
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||||||||||
Daily average revenue trades (DARTs) (in thousands)
|
392
|
|
|
376
|
|
|
4
|
%
|
|
405
|
|
|
418
|
|
|
(3
|
)%
|
||||
Clients’ daily average trades (in thousands)
|
716
|
|
|
704
|
|
|
2
|
%
|
|
746
|
|
|
757
|
|
|
(1
|
)%
|
||||
Number of trading days
|
63.0
|
|
|
64.0
|
|
|
(2
|
)%
|
|
124.0
|
|
|
125.0
|
|
|
(1
|
)%
|
||||
Daily average revenue per revenue trade
|
$
|
6.94
|
|
|
$
|
7.30
|
|
|
(5
|
)%
|
|
$
|
7.07
|
|
|
$
|
7.27
|
|
|
(3
|
)%
|
Trading revenue
|
$
|
174
|
|
|
$
|
180
|
|
|
(3
|
)%
|
|
$
|
359
|
|
|
$
|
381
|
|
|
(6
|
)%
|
|
Three Months Ended
June 30, |
|
Percent
Change |
|
Six Months Ended
June 30, |
|
Percent
Change |
||||||||||||||
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||||||||||
Compensation and benefits
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Salaries and wages
|
$
|
476
|
|
|
$
|
419
|
|
|
14
|
%
|
|
$
|
952
|
|
|
$
|
830
|
|
|
15
|
%
|
Incentive compensation
|
198
|
|
|
210
|
|
|
(6
|
)%
|
|
414
|
|
|
422
|
|
|
(2
|
)%
|
||||
Employee benefits and other
|
133
|
|
|
116
|
|
|
15
|
%
|
|
291
|
|
|
263
|
|
|
11
|
%
|
||||
Total compensation and benefits
|
$
|
807
|
|
|
$
|
745
|
|
|
8
|
%
|
|
$
|
1,657
|
|
|
$
|
1,515
|
|
|
9
|
%
|
Professional services
|
178
|
|
|
156
|
|
|
14
|
%
|
|
348
|
|
|
312
|
|
|
12
|
%
|
||||
Occupancy and equipment
|
133
|
|
|
122
|
|
|
9
|
%
|
|
264
|
|
|
244
|
|
|
8
|
%
|
||||
Advertising and market development
|
77
|
|
|
77
|
|
|
—
|
|
|
146
|
|
|
150
|
|
|
(3
|
)%
|
||||
Communications
|
62
|
|
|
58
|
|
|
7
|
%
|
|
124
|
|
|
120
|
|
|
3
|
%
|
||||
Depreciation and amortization
|
84
|
|
|
75
|
|
|
12
|
%
|
|
167
|
|
|
148
|
|
|
13
|
%
|
||||
Regulatory fees and assessments
|
30
|
|
|
50
|
|
|
(40
|
)%
|
|
62
|
|
|
101
|
|
|
(39
|
)%
|
||||
Other
|
74
|
|
|
72
|
|
|
3
|
%
|
|
136
|
|
|
161
|
|
|
(16
|
)%
|
||||
Total expenses excluding interest
|
$
|
1,445
|
|
|
$
|
1,355
|
|
|
7
|
%
|
|
$
|
2,904
|
|
|
$
|
2,751
|
|
|
6
|
%
|
Expenses as a percentage of total net revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and benefits
|
30
|
%
|
|
30
|
%
|
|
|
|
31
|
%
|
|
31
|
%
|
|
|
||||||
Advertising and market development
|
3
|
%
|
|
3
|
%
|
|
|
|
3
|
%
|
|
3
|
%
|
|
|
||||||
Full-time equivalent employees (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
At quarter end
|
20.5
|
|
|
18.7
|
|
|
10
|
%
|
|
|
|
|
|
|
|||||||
Average
|
20.2
|
|
|
18.4
|
|
|
10
|
%
|
|
20.0
|
|
|
18.2
|
|
|
10
|
%
|
|
Investor Services
|
|
Advisor Services
|
|
Total
|
|||||||||||||||||||||||||||
Three Months Ended June 30,
|
Percent Change
|
|
2019
|
|
2018
|
|
Percent Change
|
|
2019
|
|
2018
|
|
Percent Change
|
|
2019
|
|
2018
|
|||||||||||||||
Net Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net interest revenue
|
9
|
%
|
|
$
|
1,154
|
|
|
$
|
1,063
|
|
|
32
|
%
|
|
$
|
455
|
|
|
$
|
344
|
|
|
14
|
%
|
|
$
|
1,609
|
|
|
$
|
1,407
|
|
Asset management and administration fees
|
(2
|
)%
|
|
560
|
|
|
569
|
|
|
(8
|
)%
|
|
226
|
|
|
245
|
|
|
(3
|
)%
|
|
786
|
|
|
814
|
|
||||||
Trading revenue
|
(4
|
)%
|
|
110
|
|
|
115
|
|
|
(2
|
)%
|
|
64
|
|
|
65
|
|
|
(3
|
)%
|
|
174
|
|
|
180
|
|
||||||
Other
|
3
|
%
|
|
67
|
|
|
65
|
|
|
125
|
%
|
|
45
|
|
|
20
|
|
|
32
|
%
|
|
112
|
|
|
85
|
|
||||||
Total net revenues
|
4
|
%
|
|
1,891
|
|
|
1,812
|
|
|
17
|
%
|
|
790
|
|
|
674
|
|
|
8
|
%
|
|
2,681
|
|
|
2,486
|
|
||||||
Expenses Excluding Interest
|
4
|
%
|
|
1,057
|
|
|
1,012
|
|
|
13
|
%
|
|
388
|
|
|
343
|
|
|
7
|
%
|
|
1,445
|
|
|
1,355
|
|
||||||
Income before taxes on income
|
4
|
%
|
|
$
|
834
|
|
|
$
|
800
|
|
|
21
|
%
|
|
$
|
402
|
|
|
$
|
331
|
|
|
9
|
%
|
|
$
|
1,236
|
|
|
$
|
1,131
|
|
|
Investor Services
|
|
Advisor Services
|
|
Total
|
|||||||||||||||||||||||||||
Six Months Ended June 30,
|
Percent Change
|
|
2019
|
|
2018
|
|
Percent Change
|
|
2019
|
|
2018
|
|
Percent Change
|
|
2019
|
|
2018
|
|||||||||||||||
Net Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net interest revenue
|
16
|
%
|
|
$
|
2,349
|
|
|
$
|
2,020
|
|
|
45
|
%
|
|
$
|
941
|
|
|
$
|
650
|
|
|
23
|
%
|
|
$
|
3,290
|
|
|
$
|
2,670
|
|
Asset management and administration fees
|
(6
|
)%
|
|
1,093
|
|
|
1,162
|
|
|
(11
|
)%
|
|
448
|
|
|
503
|
|
|
(7
|
)%
|
|
1,541
|
|
|
1,665
|
|
||||||
Trading revenue
|
(9
|
)%
|
|
221
|
|
|
242
|
|
|
(1
|
)%
|
|
138
|
|
|
139
|
|
|
(6
|
)%
|
|
359
|
|
|
381
|
|
||||||
Other
|
8
|
%
|
|
139
|
|
|
129
|
|
|
92
|
%
|
|
75
|
|
|
39
|
|
|
27
|
%
|
|
214
|
|
|
168
|
|
||||||
Total net revenues
|
7
|
%
|
|
3,802
|
|
|
3,553
|
|
|
20
|
%
|
|
1,602
|
|
|
1,331
|
|
|
11
|
%
|
|
5,404
|
|
|
4,884
|
|
||||||
Expenses Excluding Interest
|
3
|
%
|
|
2,119
|
|
|
2,054
|
|
|
13
|
%
|
|
785
|
|
|
697
|
|
|
6
|
%
|
|
2,904
|
|
|
2,751
|
|
||||||
Income before taxes on income
|
12
|
%
|
|
$
|
1,683
|
|
|
$
|
1,499
|
|
|
29
|
%
|
|
$
|
817
|
|
|
$
|
634
|
|
|
17
|
%
|
|
$
|
2,500
|
|
|
$
|
2,133
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||
Increase of 100 basis points
|
|
4.7
|
%
|
|
4.4
|
%
|
Decrease of 100 basis points
|
|
(4.1
|
)%
|
|
(4.9
|
)%
|
|
Average for the
Three Months Ended June 30, 2019 |
||
|
|||
Total eligible high quality liquid assets
|
$
|
53,897
|
|
Net cash outflows
|
$
|
48,673
|
|
LCR
|
111
|
%
|
June 30, 2019
|
Par
Outstanding |
|
Maturity
|
Weighted Average
Interest Rate |
Moody’s
|
Standard
& Poor’s |
Fitch
|
|||
Senior Notes
|
$
|
7,481
|
|
|
2020 - 2029
|
3.39%
|
A2
|
A
|
A
|
Issuance Date
|
Issuance Amount
|
Maturity Date
|
Interest Rate
|
|||
May 22, 2019
|
$
|
600
|
|
5/22/2029
|
3.250
|
%
|
|
June 30, 2019
(1)
|
December 31, 2018
|
|||||||||||||
|
CSC
|
|
CSB
|
|
CSC
|
|
CSB
|
||||||||
Total stockholders’ equity
|
$
|
21,320
|
|
|
$
|
15,870
|
|
|
$
|
20,670
|
|
|
$
|
15,615
|
|
Less:
|
|
|
|
|
|
|
|
||||||||
Preferred stock
|
2,793
|
|
|
—
|
|
|
2,793
|
|
|
—
|
|
||||
Common Equity Tier 1 Capital before regulatory adjustments
|
$
|
18,527
|
|
|
$
|
15,870
|
|
|
$
|
17,877
|
|
|
$
|
15,615
|
|
Less:
|
|
|
|
|
|
|
|
||||||||
Goodwill, net of associated deferred tax liabilities
|
$
|
1,188
|
|
|
$
|
13
|
|
|
$
|
1,188
|
|
|
$
|
13
|
|
Other intangible assets, net of associated deferred tax liabilities
|
113
|
|
|
—
|
|
|
125
|
|
|
—
|
|
||||
Deferred tax assets, net of valuation allowances and deferred tax liabilities
|
3
|
|
|
1
|
|
|
3
|
|
|
1
|
|
||||
AOCI adjustment
(1)
|
—
|
|
|
—
|
|
|
(252
|
)
|
|
(231
|
)
|
||||
Common Equity Tier 1 Capital
|
$
|
17,223
|
|
|
$
|
15,856
|
|
|
$
|
16,813
|
|
|
$
|
15,832
|
|
Tier 1 Capital
|
$
|
20,016
|
|
|
$
|
15,856
|
|
|
$
|
19,606
|
|
|
$
|
15,832
|
|
Total Capital
|
20,035
|
|
|
15,874
|
|
|
19,628
|
|
|
15,853
|
|
||||
Risk-Weighted Assets
|
83,881
|
|
|
69,998
|
|
|
95,441
|
|
|
80,513
|
|
||||
Total Leverage Exposure
(1)
|
280,655
|
|
|
220,642
|
|
|
N/A
|
|
|
N/A
|
|
||||
Common Equity Tier 1 Capital/Risk-Weighted Assets
|
20.5
|
%
|
|
22.7
|
%
|
|
17.6
|
%
|
|
19.7
|
%
|
||||
Tier 1 Capital/Risk-Weighted Assets
|
23.9
|
%
|
|
22.7
|
%
|
|
20.5
|
%
|
|
19.7
|
%
|
||||
Total Capital/Risk-Weighted Assets
|
23.9
|
%
|
|
22.7
|
%
|
|
20.6
|
%
|
|
19.7
|
%
|
||||
Tier 1 Leverage Ratio
|
7.3
|
%
|
|
7.4
|
%
|
|
7.1
|
%
|
|
7.2
|
%
|
||||
Supplementary Leverage Ratio
(1)
|
7.1
|
%
|
|
7.2
|
%
|
|
N/A
|
|
|
N/A
|
|
|
|
2019
|
|
2018
|
||||||||||||
Six Months Ended June 30,
|
|
Cash Paid
|
|
Per Share
Amount |
|
Cash Paid
|
|
Per Share
Amount |
||||||||
Common Stock
|
|
$
|
456
|
|
|
$
|
.34
|
|
|
$
|
271
|
|
|
$
|
.20
|
|
Series A Preferred Stock
(1)
|
|
14
|
|
|
35.00
|
|
|
14
|
|
|
35.00
|
|
||||
Series C Preferred Stock
(2)
|
|
18
|
|
|
30.00
|
|
|
18
|
|
|
30.00
|
|
||||
Series D Preferred Stock
(2)
|
|
22
|
|
|
29.76
|
|
|
22
|
|
|
29.76
|
|
||||
Series E Preferred Stock
(3)
|
|
14
|
|
|
2,312.50
|
|
|
14
|
|
|
2,312.50
|
|
||||
Series F Preferred Stock
(4)
|
|
13
|
|
|
2,500.00
|
|
|
15
|
|
|
2,930.56
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net Revenues
|
|
|
|
|
|
|
|
||||||||
Interest revenue
|
$
|
1,927
|
|
|
$
|
1,590
|
|
|
$
|
3,925
|
|
|
$
|
3,011
|
|
Interest expense
|
(318
|
)
|
|
(183
|
)
|
|
(635
|
)
|
|
(341
|
)
|
||||
Net interest revenue
|
1,609
|
|
|
1,407
|
|
|
3,290
|
|
|
2,670
|
|
||||
Asset management and administration fees
|
786
|
|
|
814
|
|
|
1,541
|
|
|
1,665
|
|
||||
Trading revenue
|
174
|
|
|
180
|
|
|
359
|
|
|
381
|
|
||||
Other
|
112
|
|
|
85
|
|
|
214
|
|
|
168
|
|
||||
Total net revenues
|
2,681
|
|
|
2,486
|
|
|
5,404
|
|
|
4,884
|
|
||||
Expenses Excluding Interest
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
807
|
|
|
745
|
|
|
1,657
|
|
|
1,515
|
|
||||
Professional services
|
178
|
|
|
156
|
|
|
348
|
|
|
312
|
|
||||
Occupancy and equipment
|
133
|
|
|
122
|
|
|
264
|
|
|
244
|
|
||||
Advertising and market development
|
77
|
|
|
77
|
|
|
146
|
|
|
150
|
|
||||
Communications
|
62
|
|
|
58
|
|
|
124
|
|
|
120
|
|
||||
Depreciation and amortization
|
84
|
|
|
75
|
|
|
167
|
|
|
148
|
|
||||
Regulatory fees and assessments
|
30
|
|
|
50
|
|
|
62
|
|
|
101
|
|
||||
Other
|
74
|
|
|
72
|
|
|
136
|
|
|
161
|
|
||||
Total expenses excluding interest
|
1,445
|
|
|
1,355
|
|
|
2,904
|
|
|
2,751
|
|
||||
Income before taxes on income
|
1,236
|
|
|
1,131
|
|
|
2,500
|
|
|
2,133
|
|
||||
Taxes on income
|
299
|
|
|
265
|
|
|
599
|
|
|
484
|
|
||||
Net Income
|
937
|
|
|
866
|
|
|
1,901
|
|
|
1,649
|
|
||||
Preferred stock dividends and other
(1)
|
50
|
|
|
53
|
|
|
89
|
|
|
90
|
|
||||
Net Income Available to Common Stockholders
|
$
|
887
|
|
|
$
|
813
|
|
|
$
|
1,812
|
|
|
$
|
1,559
|
|
Weighted-Average Common Shares Outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
1,328
|
|
|
1,350
|
|
|
1,331
|
|
|
1,349
|
|
||||
Diluted
(2)
|
1,337
|
|
|
1,364
|
|
|
1,340
|
|
|
1,363
|
|
||||
Earnings Per Common Shares Outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
.67
|
|
|
$
|
.60
|
|
|
$
|
1.36
|
|
|
$
|
1.16
|
|
Diluted
(2)
|
$
|
.66
|
|
|
$
|
.60
|
|
|
$
|
1.35
|
|
|
$
|
1.14
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income
|
$
|
937
|
|
|
$
|
866
|
|
|
$
|
1,901
|
|
|
$
|
1,649
|
|
Other comprehensive income (loss), before tax:
|
|
|
|
|
|
|
|
|
|
||||||
Change in net unrealized gain (loss) on available for sale securities:
|
|
|
|
|
|
|
|
|
|
||||||
Net unrealized gain (loss)
|
218
|
|
|
(33
|
)
|
|
445
|
|
|
(141
|
)
|
||||
Other reclassifications included in other revenue
|
(3
|
)
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
||||
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale
|
8
|
|
|
9
|
|
|
20
|
|
|
18
|
|
||||
Other comprehensive income (loss), before tax
|
223
|
|
|
(24
|
)
|
|
461
|
|
|
(123
|
)
|
||||
Income tax effect
|
(53
|
)
|
|
6
|
|
|
(110
|
)
|
|
30
|
|
||||
Other comprehensive income (loss), net of tax
|
170
|
|
|
(18
|
)
|
|
351
|
|
|
(93
|
)
|
||||
Comprehensive Income
|
$
|
1,107
|
|
|
$
|
848
|
|
|
$
|
2,252
|
|
|
$
|
1,556
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
24,199
|
|
|
$
|
27,938
|
|
Cash and investments segregated and on deposit for regulatory purposes (including resale
agreements of $8,134 at June 30, 2019 and $7,195 at December 31, 2018) |
14,146
|
|
|
13,563
|
|
||
Receivables from brokers, dealers, and clearing organizations
|
463
|
|
|
553
|
|
||
Receivables from brokerage clients — net
|
21,428
|
|
|
21,651
|
|
||
Other securities owned — at fair value
|
538
|
|
|
539
|
|
||
Available for sale securities
|
54,648
|
|
|
66,578
|
|
||
Held to maturity securities
|
138,326
|
|
|
144,009
|
|
||
Bank loans — net
|
16,639
|
|
|
16,609
|
|
||
Equipment, office facilities, and property — net
|
1,909
|
|
|
1,769
|
|
||
Goodwill
|
1,227
|
|
|
1,227
|
|
||
Other assets
|
2,798
|
|
|
2,046
|
|
||
Total assets
|
$
|
276,321
|
|
|
$
|
296,482
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|||
Bank deposits
|
$
|
208,375
|
|
|
$
|
231,423
|
|
Payables to brokers, dealers, and clearing organizations
|
4,622
|
|
|
1,831
|
|
||
Payables to brokerage clients
|
31,013
|
|
|
32,726
|
|
||
Accrued expenses and other liabilities
|
3,567
|
|
|
2,954
|
|
||
Long-term debt
|
7,424
|
|
|
6,878
|
|
||
Total liabilities
|
255,001
|
|
|
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
|
4,599
|
|
|
4,499
|
|
||
Retained earnings
|
18,680
|
|
|
17,329
|
|
||
Treasury stock, at cost — 179,039,218 shares at June 30, 2019 and 155,116,695
shares at December 31, 2018 |
(4,866
|
)
|
|
(3,714
|
)
|
||
Accumulated other comprehensive income (loss)
|
99
|
|
|
(252
|
)
|
||
Total stockholders’ equity
|
21,320
|
|
|
20,670
|
|
||
Total liabilities and stockholders’ equity
|
$
|
276,321
|
|
|
$
|
296,482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
|
|||||||||||||||
|
Preferred Stock
|
|
Common stock
|
|
Additional Paid-in Capital
|
|
Retained Earnings
|
|
Treasury Stock,
at cost |
|
Total
|
|||||||||||||||||||
|
|
Shares
|
|
Amount
|
||||||||||||||||||||||||||
Balance at March 31, 2018
|
$
|
2,793
|
|
|
1,488
|
|
|
$
|
15
|
|
|
$
|
4,397
|
|
|
$
|
15,222
|
|
|
$
|
(2,837
|
)
|
|
$
|
(260
|
)
|
|
$
|
19,330
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
866
|
|
|
—
|
|
|
—
|
|
|
866
|
|
|||||||
Other comprehensive income (loss), net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18
|
)
|
|
(18
|
)
|
|||||||
Dividends declared on preferred stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(49
|
)
|
|
—
|
|
|
—
|
|
|
(49
|
)
|
|||||||
Dividends declared on common stock — $.10 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(136
|
)
|
|
—
|
|
|
—
|
|
|
(136
|
)
|
|||||||
Stock option exercises and other
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
46
|
|
|
—
|
|
|
50
|
|
|||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
31
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31
|
|
|||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
23
|
|
|||||||
Balance at June 30, 2018
|
$
|
2,793
|
|
|
1,488
|
|
|
$
|
15
|
|
|
$
|
4,447
|
|
|
$
|
15,903
|
|
|
$
|
(2,783
|
)
|
|
$
|
(278
|
)
|
|
$
|
20,097
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance at March 31, 2019
|
$
|
2,793
|
|
|
1,488
|
|
|
$
|
15
|
|
|
$
|
4,548
|
|
|
$
|
18,017
|
|
|
$
|
(3,677
|
)
|
|
$
|
(71
|
)
|
|
$
|
21,625
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
937
|
|
|
—
|
|
|
—
|
|
|
937
|
|
|||||||
Other comprehensive income (loss), net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
170
|
|
|
170
|
|
|||||||
Dividends declared on preferred stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(47
|
)
|
|
—
|
|
|
—
|
|
|
(47
|
)
|
|||||||
Dividends declared on common stock — $.17 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(228
|
)
|
|
—
|
|
|
—
|
|
|
(228
|
)
|
|||||||
Repurchase of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,220
|
)
|
|
—
|
|
|
(1,220
|
)
|
|||||||
Stock option exercises and other
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|
22
|
|
|||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
35
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35
|
|
|||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
1
|
|
|
10
|
|
|
—
|
|
|
26
|
|
|||||||
Balance at June 30, 2019
|
$
|
2,793
|
|
|
1,488
|
|
|
$
|
15
|
|
|
$
|
4,599
|
|
|
$
|
18,680
|
|
|
$
|
(4,866
|
)
|
|
$
|
99
|
|
|
$
|
21,320
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
|
|||||||||||||||
|
Preferred Stock
|
|
Common stock
|
|
Additional Paid-in Capital
|
|
Retained Earnings
|
|
Treasury Stock,
at cost |
|
|
Total
|
||||||||||||||||||
|
|
Shares
|
|
Amount
|
|
|
|
|
|
|||||||||||||||||||||
Balance at December 31, 2017
|
$
|
2,793
|
|
|
1,488
|
|
|
$
|
15
|
|
|
$
|
4,353
|
|
|
$
|
14,408
|
|
|
$
|
(2,892
|
)
|
|
$
|
(152
|
)
|
|
$
|
18,525
|
|
Adoption of accounting standards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
200
|
|
|
—
|
|
|
(33
|
)
|
|
167
|
|
|||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,649
|
|
|
—
|
|
|
—
|
|
|
1,649
|
|
|||||||
Other comprehensive income (loss), net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(93
|
)
|
|
(93
|
)
|
|||||||
Dividends declared on preferred stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(83
|
)
|
|
—
|
|
|
—
|
|
|
(83
|
)
|
|||||||
Dividends declared on common stock — $.20 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(271
|
)
|
|
—
|
|
|
—
|
|
|
(271
|
)
|
|||||||
Stock option exercises and other
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
107
|
|
|
—
|
|
|
99
|
|
|||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
78
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
78
|
|
|||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
26
|
|
|||||||
Balance at June 30, 2018
|
$
|
2,793
|
|
|
1,488
|
|
|
$
|
15
|
|
|
$
|
4,447
|
|
|
$
|
15,903
|
|
|
$
|
(2,783
|
)
|
|
$
|
(278
|
)
|
|
$
|
20,097
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance at December 31, 2018
|
$
|
2,793
|
|
|
1,488
|
|
|
$
|
15
|
|
|
$
|
4,499
|
|
|
$
|
17,329
|
|
|
$
|
(3,714
|
)
|
|
$
|
(252
|
)
|
|
$
|
20,670
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,901
|
|
|
—
|
|
|
—
|
|
|
1,901
|
|
|||||||
Other comprehensive income (loss), net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
351
|
|
|
351
|
|
|||||||
Dividends declared on preferred stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(81
|
)
|
|
—
|
|
|
—
|
|
|
(81
|
)
|
|||||||
Dividends declared on common stock — $.34 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(456
|
)
|
|
—
|
|
|
—
|
|
|
(456
|
)
|
|||||||
Repurchase of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,220
|
)
|
|
—
|
|
|
(1,220
|
)
|
|||||||
Stock option exercises and other
|
—
|
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
61
|
|
|
—
|
|
|
48
|
|
|||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
88
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
88
|
|
|||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|
(13
|
)
|
|
7
|
|
|
—
|
|
|
19
|
|
|||||||
Balance at June 30, 2019
|
$
|
2,793
|
|
|
1,488
|
|
|
$
|
15
|
|
|
$
|
4,599
|
|
|
$
|
18,680
|
|
|
$
|
(4,866
|
)
|
|
$
|
99
|
|
|
$
|
21,320
|
|
|
Six Months Ended
June 30, |
||||||
|
2019
|
|
2018
|
||||
Cash Flows from Operating Activities
|
|
|
|
|
|||
Net income
|
$
|
1,901
|
|
|
$
|
1,649
|
|
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
|
|
|
|
|
|||
Share-based compensation
|
95
|
|
|
83
|
|
||
Depreciation and amortization
|
167
|
|
|
148
|
|
||
Premium amortization, net, on available for sale and held to maturity securities
|
159
|
|
|
187
|
|
||
Other
|
65
|
|
|
77
|
|
||
Net change in:
|
|
|
|
|
|
||
Investments segregated and on deposit for regulatory purposes
|
(889
|
)
|
|
4,852
|
|
||
Receivables from brokers, dealers, and clearing organizations
|
96
|
|
|
(375
|
)
|
||
Receivables from brokerage clients
|
219
|
|
|
(1,796
|
)
|
||
Other securities owned
|
1
|
|
|
14
|
|
||
Other assets
|
(82
|
)
|
|
(124
|
)
|
||
Payables to brokers, dealers, and clearing organizations
|
(120
|
)
|
|
(45
|
)
|
||
Payables to brokerage clients
|
(1,713
|
)
|
|
(896
|
)
|
||
Accrued expenses and other liabilities
|
(280
|
)
|
|
(394
|
)
|
||
Net cash provided by (used for) operating activities
|
(381
|
)
|
|
3,380
|
|
||
Cash Flows from Investing Activities
|
|
|
|
||||
Purchases of available for sale securities
|
(5,767
|
)
|
|
(11,961
|
)
|
||
Proceeds from sales of available for sale securities
|
16,274
|
|
|
115
|
|
||
Principal payments on available for sale securities
|
12,306
|
|
|
6,957
|
|
||
Purchases of held to maturity securities
|
(10,469
|
)
|
|
(22,212
|
)
|
||
Principal payments on held to maturity securities
|
8,466
|
|
|
7,474
|
|
||
Net change in bank loans
|
(59
|
)
|
|
(110
|
)
|
||
Purchases of equipment, office facilities, and property
|
(310
|
)
|
|
(253
|
)
|
||
Purchases of Federal Home Loan Bank stock
|
(2
|
)
|
|
(141
|
)
|
||
Proceeds from sales of Federal Home Loan Bank stock
|
—
|
|
|
528
|
|
||
Other investing activities
|
9
|
|
|
(51
|
)
|
||
Net cash provided by (used for) investing activities
|
20,448
|
|
|
(19,654
|
)
|
||
Cash Flows from Financing Activities
|
|
|
|
||||
Net change in bank deposits
(1)
|
(23,048
|
)
|
|
30,266
|
|
||
Net change in short-term borrowings
|
—
|
|
|
(15,000
|
)
|
||
Issuance of long-term debt
|
593
|
|
|
1,936
|
|
||
Repayment of long-term debt
|
—
|
|
|
(904
|
)
|
||
Dividends paid
|
(537
|
)
|
|
(354
|
)
|
||
Proceeds from stock options exercised
|
48
|
|
|
99
|
|
||
Repurchases of common stock
|
(1,155
|
)
|
|
—
|
|
||
Other financing activities
|
(13
|
)
|
|
(11
|
)
|
||
Net cash provided by (used for) financing activities
|
(24,112
|
)
|
|
16,032
|
|
||
Increase (Decrease) in Cash and Cash Equivalents, including Amounts Restricted
|
(4,045
|
)
|
|
(242
|
)
|
||
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
|
$
|
34,182
|
|
|
$
|
18,918
|
|
|
|
Six Months Ended
June 30, |
||||||
|
|
2019
|
|
2018
|
||||
Supplemental Cash Flow Information
|
|
|
|
|
||||
Non-cash investing activity:
|
|
|
|
|
||||
Securities purchased during the period but settled after period end
|
|
$
|
2,910
|
|
|
$
|
2,077
|
|
Non-cash financing activity:
|
|
|
|
|
||||
Extinguishment of finance lease obligation through an assignment agreement
|
|
$
|
52
|
|
|
$
|
—
|
|
Common stock repurchased during the period but settled after period end
|
|
$
|
65
|
|
|
$
|
—
|
|
Other Supplemental Cash Flow Information
|
|
|
|
|
||||
Cash paid during the period for:
|
|
|
|
|
||||
Interest
|
|
$
|
625
|
|
|
$
|
305
|
|
Income taxes
|
|
$
|
641
|
|
|
$
|
482
|
|
Amounts included in the measurement of lease liabilities
(2)
|
|
$
|
65
|
|
|
N/A
|
|
|
Leased assets obtained in exchange for new operating lease liabilities
(2)
|
|
$
|
65
|
|
|
N/A
|
|
|
|
|
|
|
|
||||
|
|
June 30, 2019
|
|
June 30, 2018
|
||||
Reconciliation of cash, cash equivalents and amounts reported within the balance sheet
(3)
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
24,199
|
|
|
$
|
13,250
|
|
Restricted cash and cash equivalents amounts included in cash and investments segregated
and on deposit for regulatory purposes |
|
9,983
|
|
|
5,668
|
|
||
Total cash and cash equivalents, including amounts restricted shown in the
statement of cash flows |
|
$
|
34,182
|
|
|
$
|
18,918
|
|
•
|
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™).
|
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” (ASU 2017-12)
|
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.
|
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 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.
Adoption requires a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the entity applies the new guidance except that a prospective transition is required for AFS debt securities for which an OTTI has been recognized prior to the effective date. |
January 1, 2020 (early adoption permitted)
|
The Company continues to evaluate the impact of this guidance on its financial statements. 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 extent of the impact of adoption will depend on, among other things, the economic environment 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 certain government agency-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 substantially developed its credit loss estimation methods for the securities in its portfolio that do not have zero expectation of credit losses, including corporate debt securities and structured products. Our focus during the remainder of 2019 is on continuing the development of policies and processes that will be required to implement CECL, testing and validation of credit loss estimation methods, and performance of CECL parallel runs.
|
|
|
|
|
|
|
|
|
|
|
Balance at
December 31, 2018 |
|
Adjustments Due to ASU 2016-02
|
|
Balance at
January 1, 2019 |
||||||
Assets
|
|
|
|
|
|
|
||||||
Other assets
(1)
|
|
$
|
2,046
|
|
|
$
|
588
|
|
|
$
|
2,634
|
|
Liabilities
|
|
|
|
|
|
|
||||||
Accrued expenses and other liabilities
(2)
|
|
$
|
2,954
|
|
|
$
|
588
|
|
|
$
|
3,542
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
|||||||||||
|
2019
|
2018
|
|
2019
|
2018
|
|||||||||
Net interest revenue
|
|
|
|
|
|
|
||||||||
Interest revenue
|
$
|
1,927
|
|
|
$
|
1,590
|
|
|
$
|
3,925
|
|
$
|
3,011
|
|
Interest expense
|
(318
|
)
|
|
(183
|
)
|
|
(635
|
)
|
(341
|
)
|
||||
Net interest revenue
|
1,609
|
|
|
1,407
|
|
|
3,290
|
|
2,670
|
|
||||
Asset management and administration fees
|
|
|
|
|
|
|
||||||||
Mutual funds, ETFs, and CTFs
(1)
|
428
|
|
|
469
|
|
|
842
|
|
973
|
|
||||
Advice solutions
|
295
|
|
|
283
|
|
|
573
|
|
565
|
|
||||
Other
(1)
|
63
|
|
|
62
|
|
|
126
|
|
127
|
|
||||
Asset management and administration fees
|
786
|
|
|
814
|
|
|
1,541
|
|
1,665
|
|
||||
Trading revenue
|
|
|
|
|
|
|
||||||||
Commissions
|
155
|
|
|
157
|
|
|
318
|
|
346
|
|
||||
Principal transactions
|
19
|
|
|
23
|
|
|
41
|
|
35
|
|
||||
Trading revenue
|
174
|
|
|
180
|
|
|
359
|
|
381
|
|
||||
Other
|
112
|
|
|
85
|
|
|
214
|
|
168
|
|
||||
Total net revenues
|
$
|
2,681
|
|
|
$
|
2,486
|
|
|
$
|
5,404
|
|
$
|
4,884
|
|
June 30, 2019
|
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
||||||||
Available for sale securities
|
|
|
|
|
|
|
|
|
||||||||
U.S. agency mortgage-backed securities
|
|
$
|
32,773
|
|
|
$
|
263
|
|
|
$
|
49
|
|
|
$
|
32,987
|
|
U.S. Treasury securities
|
|
7,352
|
|
|
4
|
|
|
23
|
|
|
7,333
|
|
||||
Asset-backed securities
(1)
|
|
6,055
|
|
|
37
|
|
|
7
|
|
|
6,085
|
|
||||
Corporate debt securities
(2)
|
|
5,378
|
|
|
53
|
|
|
—
|
|
|
5,431
|
|
||||
Certificates of deposit
|
|
2,120
|
|
|
6
|
|
|
—
|
|
|
2,126
|
|
||||
U.S. agency notes
|
|
250
|
|
|
—
|
|
|
—
|
|
|
250
|
|
||||
Commercial paper
(2,3)
|
|
422
|
|
|
—
|
|
|
—
|
|
|
422
|
|
||||
Non-agency commercial mortgage-backed securities
|
|
14
|
|
|
—
|
|
|
—
|
|
|
14
|
|
||||
Total available for sale securities
|
|
$
|
54,364
|
|
|
$
|
363
|
|
|
$
|
79
|
|
|
$
|
54,648
|
|
Held to maturity securities
|
|
|
|
|
|
|
|
|
||||||||
U.S. agency mortgage-backed securities
|
|
$
|
112,570
|
|
|
$
|
1,380
|
|
|
$
|
417
|
|
|
$
|
113,533
|
|
Asset-backed securities
(1)
|
|
18,218
|
|
|
75
|
|
|
32
|
|
|
18,261
|
|
||||
Corporate debt securities
(2)
|
|
4,593
|
|
|
43
|
|
|
3
|
|
|
4,633
|
|
||||
U.S. state and municipal securities
|
|
1,310
|
|
|
93
|
|
|
—
|
|
|
1,403
|
|
||||
Non-agency commercial mortgage-backed securities
|
|
1,143
|
|
|
24
|
|
|
—
|
|
|
1,167
|
|
||||
U.S. Treasury securities
|
|
223
|
|
|
4
|
|
|
—
|
|
|
227
|
|
||||
Certificates of deposit
|
|
200
|
|
|
1
|
|
|
—
|
|
|
201
|
|
||||
Foreign government agency securities
|
|
50
|
|
|
—
|
|
|
—
|
|
|
50
|
|
||||
Other
|
|
19
|
|
|
—
|
|
|
—
|
|
|
19
|
|
||||
Total held to maturity securities
|
|
$
|
138,326
|
|
|
$
|
1,620
|
|
|
$
|
452
|
|
|
$
|
139,494
|
|
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
|
|
|
Less than
|
|
12 months
|
|
|
|
|
||||||||||||||||
|
12 months
|
|
or longer
|
|
Total
|
||||||||||||||||||
June 30, 2019
|
Fair
Value |
|
Unrealized
Losses |
|
Fair
Value |
|
Unrealized
Losses |
|
Fair
Value |
|
Unrealized
Losses |
||||||||||||
Available for sale securities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. agency mortgage-backed securities
|
$
|
7,393
|
|
|
$
|
28
|
|
|
$
|
6,082
|
|
|
$
|
21
|
|
|
$
|
13,475
|
|
|
$
|
49
|
|
U.S. Treasury securities
|
22
|
|
|
—
|
|
|
5,645
|
|
|
23
|
|
|
5,667
|
|
|
23
|
|
||||||
Asset-backed securities
|
453
|
|
|
1
|
|
|
526
|
|
|
6
|
|
|
979
|
|
|
7
|
|
||||||
Total
|
$
|
7,868
|
|
|
$
|
29
|
|
|
$
|
12,253
|
|
|
$
|
50
|
|
|
$
|
20,121
|
|
|
$
|
79
|
|
Held to maturity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. agency mortgage-backed securities
|
$
|
6,433
|
|
|
$
|
24
|
|
|
$
|
41,952
|
|
|
$
|
393
|
|
|
$
|
48,385
|
|
|
$
|
417
|
|
Asset-backed securities
|
7,388
|
|
|
32
|
|
|
287
|
|
|
—
|
|
|
7,675
|
|
|
32
|
|
||||||
Corporate debt securities
|
589
|
|
|
2
|
|
|
596
|
|
|
1
|
|
|
1,185
|
|
|
3
|
|
||||||
Total
|
$
|
14,410
|
|
|
$
|
58
|
|
|
$
|
42,835
|
|
|
$
|
394
|
|
|
$
|
57,245
|
|
|
$
|
452
|
|
Total securities with unrealized losses
(1)
|
$
|
22,278
|
|
|
$
|
87
|
|
|
$
|
55,088
|
|
|
$
|
444
|
|
|
$
|
77,366
|
|
|
$
|
531
|
|
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
|
|
June 30, 2019
|
Within
1 year |
|
After 1 year
through 5 years |
|
After 5 years
through 10 years |
|
After
10 years |
|
Total
|
||||||||||
Available for sale securities
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. agency mortgage-backed securities
|
$
|
35
|
|
|
$
|
1,234
|
|
|
$
|
11,605
|
|
|
$
|
20,113
|
|
|
$
|
32,987
|
|
U.S. Treasury securities
|
4,432
|
|
|
2,901
|
|
|
—
|
|
|
—
|
|
|
7,333
|
|
|||||
Asset-backed securities
|
—
|
|
|
4,791
|
|
|
1,001
|
|
|
293
|
|
|
6,085
|
|
|||||
Corporate debt securities
|
1,631
|
|
|
3,800
|
|
|
—
|
|
|
—
|
|
|
5,431
|
|
|||||
Certificates of deposit
|
921
|
|
|
1,205
|
|
|
—
|
|
|
—
|
|
|
2,126
|
|
|||||
U.S. agency notes
|
250
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
250
|
|
|||||
Commercial paper
|
422
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
422
|
|
|||||
Non-agency commercial mortgage-backed securities
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
14
|
|
|||||
Total fair value
|
$
|
7,691
|
|
|
$
|
13,931
|
|
|
$
|
12,606
|
|
|
$
|
20,420
|
|
|
$
|
54,648
|
|
Total amortized cost
|
$
|
7,692
|
|
|
$
|
13,863
|
|
|
$
|
12,588
|
|
|
$
|
20,221
|
|
|
$
|
54,364
|
|
Held to maturity securities
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. agency mortgage-backed securities
|
$
|
156
|
|
|
$
|
15,464
|
|
|
$
|
34,066
|
|
|
$
|
63,847
|
|
|
$
|
113,533
|
|
Asset-backed securities
|
—
|
|
|
2,300
|
|
|
8,802
|
|
|
7,159
|
|
|
18,261
|
|
|||||
Corporate debt securities
|
847
|
|
|
3,098
|
|
|
688
|
|
|
—
|
|
|
4,633
|
|
|||||
U.S. state and municipal securities
|
—
|
|
|
98
|
|
|
379
|
|
|
926
|
|
|
1,403
|
|
|||||
Non-agency commercial mortgage-backed securities
|
—
|
|
|
366
|
|
|
—
|
|
|
801
|
|
|
1,167
|
|
|||||
U.S. Treasury securities
|
—
|
|
|
—
|
|
|
227
|
|
|
—
|
|
|
227
|
|
|||||
Certificates of deposit
|
201
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
201
|
|
|||||
Foreign government agency securities
|
—
|
|
|
50
|
|
|
—
|
|
|
—
|
|
|
50
|
|
|||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
19
|
|
|||||
Total fair value
|
$
|
1,204
|
|
|
$
|
21,376
|
|
|
$
|
44,162
|
|
|
$
|
72,752
|
|
|
$
|
139,494
|
|
Total amortized cost
|
$
|
1,203
|
|
|
$
|
21,138
|
|
|
$
|
43,371
|
|
|
$
|
72,614
|
|
|
$
|
138,326
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended June 30,
|
||||||||||||
|
|
||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Proceeds
|
$
|
5,622
|
|
|
$
|
115
|
|
|
$
|
16,274
|
|
|
$
|
115
|
|
Gross realized gains
|
7
|
|
|
—
|
|
|
10
|
|
|
—
|
|
||||
Gross realized losses
|
4
|
|
|
—
|
|
|
6
|
|
|
—
|
|
June 30, 2019
|
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 loan losses |
Total
bank loans – net |
||||||||||||||||
First Mortgages
(1,2)
|
$
|
10,458
|
|
$
|
16
|
|
$
|
2
|
|
$
|
11
|
|
$
|
29
|
|
$
|
10,487
|
|
$
|
12
|
|
$
|
10,475
|
|
HELOCs
(1,2)
|
1,297
|
|
2
|
|
1
|
|
8
|
|
11
|
|
1,308
|
|
5
|
|
1,303
|
|
||||||||
Pledged asset lines
|
4,692
|
|
1
|
|
2
|
|
—
|
|
3
|
|
4,695
|
|
—
|
|
4,695
|
|
||||||||
Other
|
168
|
|
—
|
|
—
|
|
—
|
|
—
|
|
168
|
|
2
|
|
166
|
|
||||||||
Total bank loans
|
$
|
16,615
|
|
$
|
19
|
|
$
|
5
|
|
$
|
19
|
|
$
|
43
|
|
$
|
16,658
|
|
$
|
19
|
|
$
|
16,639
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
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
|
|
|
June 30, 2019
|
|
June 30, 2018
|
||||||||||||||||||||||||||||
Three Months Ended
|
First Mortgages
|
|
HELOCs
|
|
Other
|
|
Total
(1)
|
|
First Mortgages
|
|
HELOCs
|
|
Other
|
|
Total
(1)
|
||||||||||||||||
Balance at beginning of period
|
$
|
14
|
|
|
$
|
5
|
|
|
$
|
2
|
|
|
$
|
21
|
|
|
$
|
17
|
|
|
$
|
7
|
|
|
$
|
3
|
|
|
$
|
27
|
|
Charge-offs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||||
Recoveries
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||||
Provision for loan losses
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||||||
Balance at end of period
|
$
|
12
|
|
|
$
|
5
|
|
|
$
|
2
|
|
|
$
|
19
|
|
|
$
|
17
|
|
|
$
|
7
|
|
|
$
|
2
|
|
|
$
|
26
|
|
|
June 30, 2019
|
|
June 30, 2018
|
||||||||||||||||||||||||||||
Six 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
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||||
Provision for loan losses
|
(3
|
)
|
|
(1
|
)
|
|
—
|
|
|
(4
|
)
|
|
1
|
|
|
(2
|
)
|
|
1
|
|
|
—
|
|
||||||||
Balance at end of period
|
$
|
12
|
|
|
$
|
5
|
|
|
$
|
2
|
|
|
$
|
19
|
|
|
$
|
17
|
|
|
$
|
7
|
|
|
$
|
2
|
|
|
$
|
26
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Nonaccrual loans
(1)
|
$
|
19
|
|
|
$
|
21
|
|
Other real estate owned
(2)
|
2
|
|
|
3
|
|
||
Total nonperforming assets
|
21
|
|
|
24
|
|
||
Troubled debt restructurings
|
2
|
|
|
4
|
|
||
Total impaired assets
|
$
|
23
|
|
|
$
|
28
|
|
•
|
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).
|
June 30, 2019
|
|
Balance
|
|
Weighted Average
Updated FICO |
|
Percent of
Loans that are on Nonaccrual Status |
||||
First Mortgages
|
|
|
|
|
|
|
||||
Estimated Current LTV
|
|
|
|
|
|
|
||||
<
70%
|
|
$
|
9,499
|
|
|
776
|
|
|
0.03
|
%
|
>70% –
<
90%
|
|
986
|
|
|
770
|
|
|
0.31
|
%
|
|
>90% –
<
100%
|
|
1
|
|
|
675
|
|
|
—
|
|
|
>100%
|
|
1
|
|
|
753
|
|
|
—
|
|
|
Total
|
|
$
|
10,487
|
|
|
776
|
|
|
0.06
|
%
|
HELOCs
|
|
|
|
|
|
|
||||
Estimated Current LTV
(1)
|
|
|
|
|
|
|
||||
<
70%
|
|
$
|
1,235
|
|
|
769
|
|
|
0.20
|
%
|
>70% –
<
90%
|
|
65
|
|
|
751
|
|
|
0.86
|
%
|
|
>90% –
<
100%
|
|
5
|
|
|
726
|
|
|
2.56
|
%
|
|
>100%
|
|
3
|
|
|
687
|
|
|
6.28
|
%
|
|
Total
|
|
$
|
1,308
|
|
|
768
|
|
|
0.25
|
%
|
Pledged asset lines
|
|
|
|
|
|
|
|
|||
Weighted-Average LTV
(1)
|
|
|
|
|
|
|
|
|||
=70%
|
|
$
|
4,695
|
|
|
765
|
|
|
0.02
|
%
|
December 31, 2018
|
|
Balance
|
|
Weighted Average
Updated FICO |
|
Percent of
Loans that are on Nonaccrual Status |
||||
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
|
|
|
—
|
|
June 30, 2019
|
|
First Mortgages
|
|
HELOCs
|
||||
Year of origination
|
|
|
|
|
|
|||
Pre-2015
|
|
$
|
1,992
|
|
|
$
|
947
|
|
2015
|
|
951
|
|
|
92
|
|
||
2016
|
|
2,469
|
|
|
85
|
|
||
2017
|
|
2,235
|
|
|
96
|
|
||
2018
|
|
1,782
|
|
|
70
|
|
||
2019
|
|
1,058
|
|
|
18
|
|
||
Total
|
|
$
|
10,487
|
|
|
$
|
1,308
|
|
Origination FICO
|
|
|
|
|
|
|
||
<620
|
|
$
|
4
|
|
|
$
|
—
|
|
620 – 679
|
|
78
|
|
|
7
|
|
||
680 – 739
|
|
1,622
|
|
|
251
|
|
||
>
740
|
|
8,783
|
|
|
1,050
|
|
||
Total
|
|
$
|
10,487
|
|
|
$
|
1,308
|
|
Origination LTV
|
|
|
|
|
||||
<
70%
|
|
$
|
7,880
|
|
|
$
|
928
|
|
>70% –
<
90%
|
|
2,603
|
|
|
374
|
|
||
>90% –
<
100%
|
|
4
|
|
|
6
|
|
||
Total
|
|
$
|
10,487
|
|
|
$
|
1,308
|
|
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
|
|
June 30, 2019
|
|
Balance
|
||
Converted to an amortizing loan by period end
|
|
$
|
591
|
|
Within 1 year
|
|
58
|
|
|
> 1 year – 3 years
|
|
90
|
|
|
> 3 years – 5 years
|
|
173
|
|
|
> 5 years
|
|
396
|
|
|
Total
|
|
$
|
1,308
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
|
Aggregate
assets |
|
Aggregate
liabilities |
|
Maximum
exposure to loss |
|
Aggregate
assets |
|
Aggregate
liabilities |
|
Maximum
exposure to loss |
||||||||||||
LIHTC investments
(1)
|
|
$
|
453
|
|
|
$
|
266
|
|
|
$
|
453
|
|
|
$
|
338
|
|
|
$
|
188
|
|
|
$
|
338
|
|
Other CRA investments
(2)
|
|
87
|
|
|
—
|
|
|
124
|
|
|
70
|
|
|
—
|
|
|
124
|
|
||||||
Total
|
|
$
|
540
|
|
|
$
|
266
|
|
|
$
|
577
|
|
|
$
|
408
|
|
|
$
|
188
|
|
|
$
|
462
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Interest-bearing deposits:
|
|
|
|
|
||||
Deposits swept from brokerage accounts
|
|
$
|
190,491
|
|
|
$
|
212,311
|
|
Checking
|
|
11,971
|
|
|
12,523
|
|
||
Savings and other
|
|
5,189
|
|
|
5,827
|
|
||
Total interest-bearing deposits
|
|
207,651
|
|
|
230,661
|
|
||
Non-interest-bearing deposits
|
|
724
|
|
|
762
|
|
||
Total bank deposits
|
|
$
|
208,375
|
|
|
$
|
231,423
|
|
|
Date of
|
Principal Amount Outstanding
|
|||||
|
Issuance
|
June 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
|
|
(15
|
)
|
(15
|
)
|
||
Debt issuance costs
|
|
(42
|
)
|
(40
|
)
|
||
Total long-term debt
|
|
$
|
7,424
|
|
$
|
6,878
|
|
|
Maturities
|
||
2019
|
$
|
—
|
|
2020
|
700
|
|
|
2021
|
1,200
|
|
|
2022
|
256
|
|
|
2023
|
800
|
|
|
Thereafter
|
4,525
|
|
|
Total maturities
|
7,481
|
|
|
Unamortized discount — net
|
(15
|
)
|
|
Debt issuance costs
|
(42
|
)
|
|
Total long-term debt
|
$
|
7,424
|
|
Leases
|
Balance Sheet Classification
|
June 30, 2019
|
||
Assets
|
|
|
||
Operating lease assets
|
Other assets
|
$
|
601
|
|
Liabilities
|
|
|
|
|
Operating lease liabilities
|
Accrued expenses and other liabilities
|
$
|
670
|
|
Lease Cost
|
Three Months Ended June 30, 2019
|
|
Six Months Ended June 30, 2019
|
||||
Operating lease cost
(1)
|
$
|
33
|
|
|
$
|
66
|
|
Variable lease cost
(2)
|
$
|
6
|
|
|
$
|
17
|
|
Lease Term and Discount Rate
|
|
|
Weighted-average remaining lease term (years)
|
7.30
|
|
Weighted-average discount rate
|
3.50
|
%
|
Maturity of Lease Liabilities
|
Operating Leases
(1)
|
||
2019
|
$
|
60
|
|
2020
|
132
|
|
|
2021
|
109
|
|
|
2022
|
88
|
|
|
2023
|
80
|
|
|
After 2023
|
299
|
|
|
Total lease payments
|
768
|
|
|
Less: Interest
|
98
|
|
|
Present value of lease liabilities
|
$
|
670
|
|
|
Operating
Leases |
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
|
|
|
June 30, 2019
|
|
December 31, 2018
|
|
|||
Commitments to extend credit related to unused HELOCs, PALs, and other lines of credit
|
$
|
11,582
|
|
|
$
|
11,046
|
|
Commitments to purchase First Mortgage loans
|
640
|
|
|
268
|
|
||
Total
|
$
|
12,222
|
|
|
$
|
11,314
|
|
|
|
|
|
|
|
|
|
Gross Amounts Not Offset in the
Condensed Consolidated Balance Sheets |
|
|
|||||||||||||||
|
|
Gross
Assets/ Liabilities |
|
Gross Amounts
Offset in the Condensed Consolidated Balance Sheets |
|
Net Amounts
Presented in the Condensed Consolidated Balance Sheets |
|
Counterparty
Offsetting |
|
Collateral
|
|
Net
Amount |
|||||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Resale agreements
(1)
|
|
$
|
8,134
|
|
|
$
|
—
|
|
|
$
|
8,134
|
|
|
$
|
—
|
|
|
$
|
(8,134
|
)
|
(2)
|
|
$
|
—
|
|
Securities borrowed
(3)
|
|
78
|
|
|
—
|
|
|
78
|
|
|
(78
|
)
|
|
—
|
|
|
|
—
|
|
||||||
Total
|
|
$
|
8,212
|
|
|
$
|
—
|
|
|
$
|
8,212
|
|
|
$
|
(78
|
)
|
|
$
|
(8,134
|
)
|
|
|
$
|
—
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities loaned
(4,5)
|
|
$
|
1,554
|
|
|
$
|
—
|
|
|
$
|
1,554
|
|
|
$
|
(78
|
)
|
|
$
|
(1,362
|
)
|
|
|
$
|
114
|
|
Total
|
|
$
|
1,554
|
|
|
$
|
—
|
|
|
$
|
1,554
|
|
|
$
|
(78
|
)
|
|
$
|
(1,362
|
)
|
|
|
$
|
114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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
|
|
|
|
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Fair value of client securities available to be pledged
|
|
$
|
27,036
|
|
|
$
|
26,628
|
|
||||
Fair value of client securities pledged for:
|
|
|
|
|
||||||||
Fulfillment of requirements with the Options Clearing Corporation
(1)
|
|
1,716
|
|
|
2,315
|
|
||||||
Fulfillment of client short sales
|
|
2,052
|
|
|
1,292
|
|
||||||
Securities lending to other broker-dealers
|
|
1,248
|
|
|
974
|
|
||||||
Total collateral pledged
|
|
$
|
5,016
|
|
|
$
|
4,581
|
|
(1)
|
Client securities pledged to fulfill client margin requirements for open option contracts established with the Options Clearing Corporation.
|
June 30, 2019
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Balance at
Fair Value |
||||||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Money market funds
|
$
|
1,568
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,568
|
|
Commercial paper
|
—
|
|
|
1,281
|
|
|
—
|
|
|
1,281
|
|
||||
Total cash equivalents
|
1,568
|
|
|
1,281
|
|
|
—
|
|
|
2,849
|
|
||||
Investments segregated and on deposit for regulatory purposes:
|
|
|
|
|
|
|
|
||||||||
Certificates of deposit
|
—
|
|
|
1,602
|
|
|
—
|
|
|
1,602
|
|
||||
U.S. Government securities
|
—
|
|
|
1,502
|
|
|
—
|
|
|
1,502
|
|
||||
Total investments segregated and on deposit for regulatory purposes
|
—
|
|
|
3,104
|
|
|
—
|
|
|
3,104
|
|
||||
Other securities owned:
|
|
|
|
|
|
|
|
||||||||
Equity and bond mutual funds
|
433
|
|
|
—
|
|
|
—
|
|
|
433
|
|
||||
State and municipal debt obligations
|
—
|
|
|
26
|
|
|
—
|
|
|
26
|
|
||||
Equity, U.S. Government and corporate debt, and other securities
|
5
|
|
|
65
|
|
|
—
|
|
|
70
|
|
||||
Schwab Funds
®
money market funds
|
9
|
|
|
—
|
|
|
—
|
|
|
9
|
|
||||
Total other securities owned
|
447
|
|
|
91
|
|
|
—
|
|
|
538
|
|
||||
Available for sale securities:
|
|
|
|
|
|
|
|
||||||||
U.S. agency mortgage-backed securities
|
—
|
|
|
32,987
|
|
|
—
|
|
|
32,987
|
|
||||
U.S. Treasury securities
|
—
|
|
|
7,333
|
|
|
—
|
|
|
7,333
|
|
||||
Asset-backed securities
|
—
|
|
|
6,085
|
|
|
—
|
|
|
6,085
|
|
||||
Corporate debt securities
|
—
|
|
|
5,431
|
|
|
—
|
|
|
5,431
|
|
||||
Certificates of deposit
|
—
|
|
|
2,126
|
|
|
—
|
|
|
2,126
|
|
||||
U.S. agency notes
|
—
|
|
|
250
|
|
|
—
|
|
|
250
|
|
||||
Commercial paper
|
—
|
|
|
422
|
|
|
—
|
|
|
422
|
|
||||
Non-agency commercial mortgage-backed securities
|
—
|
|
|
14
|
|
|
—
|
|
|
14
|
|
||||
Total available for sale securities
|
—
|
|
|
54,648
|
|
|
—
|
|
|
54,648
|
|
||||
Total
|
$
|
2,015
|
|
|
$
|
59,124
|
|
|
$
|
—
|
|
|
$
|
61,139
|
|
December 31, 2018
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Balance at
Fair Value |
||||||||
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
|
|
June 30, 2019
|
Carrying
Amount |
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Balance at
Fair Value |
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
21,350
|
|
|
$
|
—
|
|
|
$
|
21,350
|
|
|
$
|
—
|
|
|
$
|
21,350
|
|
Cash and investments segregated and on deposit for
regulatory purposes |
11,026
|
|
|
—
|
|
|
11,026
|
|
|
—
|
|
|
11,026
|
|
|||||
Receivables from brokers, dealers, and clearing
organizations |
463
|
|
|
—
|
|
|
463
|
|
|
—
|
|
|
463
|
|
|||||
Receivables from brokerage clients — net
|
21,418
|
|
|
—
|
|
|
21,418
|
|
|
—
|
|
|
21,418
|
|
|||||
Held to maturity securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. agency mortgage-backed securities
|
112,570
|
|
|
—
|
|
|
113,533
|
|
|
—
|
|
|
113,533
|
|
|||||
Asset-backed securities
|
18,218
|
|
|
—
|
|
|
18,261
|
|
|
—
|
|
|
18,261
|
|
|||||
Corporate debt securities
|
4,593
|
|
|
—
|
|
|
4,633
|
|
|
—
|
|
|
4,633
|
|
|||||
U.S. state and municipal securities
|
1,310
|
|
|
—
|
|
|
1,403
|
|
|
—
|
|
|
1,403
|
|
|||||
Non-agency commercial mortgage-backed securities
|
1,143
|
|
|
—
|
|
|
1,167
|
|
|
—
|
|
|
1,167
|
|
|||||
U.S. Treasury securities
|
223
|
|
|
—
|
|
|
227
|
|
|
—
|
|
|
227
|
|
|||||
Certificates of deposit
|
200
|
|
|
—
|
|
|
201
|
|
|
—
|
|
|
201
|
|
|||||
Foreign government agency securities
|
50
|
|
|
—
|
|
|
50
|
|
|
—
|
|
|
50
|
|
|||||
Other
|
19
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
19
|
|
|||||
Total held to maturity securities
|
138,326
|
|
|
—
|
|
|
139,494
|
|
|
—
|
|
|
139,494
|
|
|||||
Bank loans — net:
|
|
|
|
|
|
|
|
|
|
||||||||||
First Mortgages
|
10,475
|
|
|
—
|
|
|
10,490
|
|
|
—
|
|
|
10,490
|
|
|||||
HELOCs
|
1,303
|
|
|
—
|
|
|
1,390
|
|
|
—
|
|
|
1,390
|
|
|||||
Pledged asset lines
|
4,695
|
|
|
—
|
|
|
4,695
|
|
|
—
|
|
|
4,695
|
|
|||||
Other
|
166
|
|
|
—
|
|
|
166
|
|
|
—
|
|
|
166
|
|
|||||
Total bank loans — net
|
16,639
|
|
|
—
|
|
|
16,741
|
|
|
—
|
|
|
16,741
|
|
|||||
Other assets
|
580
|
|
|
—
|
|
|
580
|
|
|
—
|
|
|
580
|
|
|||||
Total
|
$
|
209,802
|
|
|
$
|
—
|
|
|
$
|
211,072
|
|
|
$
|
—
|
|
|
$
|
211,072
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank deposits
|
$
|
208,375
|
|
|
$
|
—
|
|
|
$
|
208,375
|
|
|
$
|
—
|
|
|
$
|
208,375
|
|
Payables to brokers, dealers, and clearing organizations
|
4,622
|
|
|
—
|
|
|
4,622
|
|
|
—
|
|
|
4,622
|
|
|||||
Payables to brokerage clients
|
31,013
|
|
|
—
|
|
|
31,013
|
|
|
—
|
|
|
31,013
|
|
|||||
Accrued expenses and other liabilities
|
1,307
|
|
|
—
|
|
|
1,307
|
|
|
—
|
|
|
1,307
|
|
|||||
Long-term debt
|
7,424
|
|
|
—
|
|
|
7,695
|
|
|
—
|
|
|
7,695
|
|
|||||
Total
|
$
|
252,741
|
|
|
$
|
—
|
|
|
$
|
253,012
|
|
|
$
|
—
|
|
|
$
|
253,012
|
|
December 31, 2018
|
Carrying
Amount |
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Balance at
Fair Value |
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
19,646
|
|
|
$
|
—
|
|
|
$
|
19,646
|
|
|
$
|
—
|
|
|
$
|
19,646
|
|
Cash and investments segregated and on deposit for
regulatory purposes |
8,886
|
|
|
—
|
|
|
8,886
|
|
|
—
|
|
|
8,886
|
|
|||||
Receivables from brokers, dealers, and clearing
organizations |
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
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||||||||||
|
|
Total
(in millions) |
|
Per Share
Amount |
|
Total
(in millions) |
|
Per Share
Amount |
|
Total
(in millions) |
|
Per Share
Amount |
|
Total
(in millions) |
|
Per Share
Amount |
||||||||||||||||
Series A
|
|
$
|
14
|
|
|
$
|
35.00
|
|
|
$
|
14
|
|
|
$
|
35.00
|
|
|
$
|
14
|
|
|
$
|
35.00
|
|
|
$
|
14
|
|
|
$
|
35.00
|
|
Series C
|
|
9
|
|
|
15.00
|
|
|
9
|
|
|
15.00
|
|
|
18
|
|
|
30.00
|
|
|
18
|
|
|
30.00
|
|
||||||||
Series D
|
|
11
|
|
|
14.88
|
|
|
11
|
|
|
14.88
|
|
|
22
|
|
|
29.76
|
|
|
22
|
|
|
29.76
|
|
||||||||
Series E
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
2,312.50
|
|
|
14
|
|
|
2,312.50
|
|
||||||||
Series F
|
|
13
|
|
|
2,500.00
|
|
|
15
|
|
|
2,930.56
|
|
|
13
|
|
|
2,500.00
|
|
|
15
|
|
|
2,930.56
|
|
||||||||
Total
|
|
$
|
47
|
|
|
|
|
$
|
49
|
|
|
|
|
$
|
81
|
|
|
|
|
$
|
83
|
|
|
|
|
2019
|
|
2018
|
||||||||||||||||||||
Three Months Ended June 30,
|
Before
Tax |
|
Tax
Effect |
|
Net of
Tax |
|
Before
Tax |
|
Tax
Effect |
|
Net of
Tax |
||||||||||||
Change in net unrealized gain (loss) on available for sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net unrealized gain (loss)
|
$
|
218
|
|
|
$
|
(53
|
)
|
|
$
|
165
|
|
|
$
|
(33
|
)
|
|
$
|
8
|
|
|
$
|
(25
|
)
|
Other reclassifications included in other revenue
|
(3
|
)
|
|
1
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale
|
8
|
|
|
(1
|
)
|
|
7
|
|
|
9
|
|
|
(2
|
)
|
|
7
|
|
||||||
Other comprehensive income (loss)
|
$
|
223
|
|
|
$
|
(53
|
)
|
|
$
|
170
|
|
|
$
|
(24
|
)
|
|
$
|
6
|
|
|
$
|
(18
|
)
|
|
2019
|
|
2018
|
||||||||||||||||||||
Six Months Ended June 30,
|
Before
Tax |
|
Tax
Effect |
|
Net of
Tax |
|
Before
Tax |
|
Tax
Effect |
|
Net of
Tax |
||||||||||||
Change in net unrealized gain (loss) on available for sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net unrealized gain (loss)
|
$
|
445
|
|
|
$
|
(107
|
)
|
|
$
|
338
|
|
|
$
|
(141
|
)
|
|
$
|
34
|
|
|
$
|
(107
|
)
|
Other reclassifications included in other revenue
|
(4
|
)
|
|
1
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale
|
20
|
|
|
(4
|
)
|
|
16
|
|
|
18
|
|
|
(4
|
)
|
|
14
|
|
||||||
Other comprehensive income (loss)
|
$
|
461
|
|
|
$
|
(110
|
)
|
|
$
|
351
|
|
|
$
|
(123
|
)
|
|
$
|
30
|
|
|
$
|
(93
|
)
|
|
Total AOCI
|
||
Balance at March 31, 2018
|
$
|
(260
|
)
|
Available for sale securities:
|
|
||
Net unrealized gain (loss)
|
(25
|
)
|
|
Held to maturity securities:
|
|
||
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale
|
7
|
|
|
Balance at June 30, 2018
|
$
|
(278
|
)
|
|
|
||
Balance at March 31, 2019
|
$
|
(71
|
)
|
Available for sale securities:
|
|
||
Net unrealized gain (loss), excluding transfers to available for sale from held to maturity
|
165
|
|
|
Other reclassifications included in other revenue
|
(2
|
)
|
|
Held to maturity securities:
|
|
||
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale
|
7
|
|
|
Balance at June 30, 2019
|
$
|
99
|
|
|
Total AOCI
|
||
Balance at December 31, 2017
|
$
|
(152
|
)
|
Adoption of accounting standards
|
(33
|
)
|
|
Available for sale securities:
|
|
||
Net unrealized gain (loss)
|
(107
|
)
|
|
Held to maturity securities:
|
|
||
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale
|
14
|
|
|
Balance at June 30, 2018
|
$
|
(278
|
)
|
|
|
||
Balance at December 31, 2018
|
$
|
(252
|
)
|
Available for sale securities:
|
|
||
Net unrealized gain (loss), excluding transfers to available for sale from held to maturity
|
319
|
|
|
Net unrealized gain on securities transferred to available for sale from held to maturity
(1)
|
19
|
|
|
Other reclassifications included in other revenue
|
(3
|
)
|
|
Held to maturity securities:
|
|
||
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale
|
16
|
|
|
Balance at June 30, 2019
|
$
|
99
|
|
|
|
Actual
(1)
|
|
Minimum to be
Well Capitalized |
|
Minimum Capital Requirement
|
|||||||||||||||
June 30, 2019
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
(2)
|
|||||||||
CSC
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Common Equity Tier 1 Risk-Based Capital
|
|
$
|
17,223
|
|
|
20.5
|
%
|
|
N/A
|
|
|
|
|
$
|
3,775
|
|
|
4.5
|
%
|
||
Tier 1 Risk-Based Capital
|
|
20,016
|
|
|
23.9
|
%
|
|
N/A
|
|
|
|
|
5,033
|
|
|
6.0
|
%
|
||||
Total Risk-Based Capital
|
|
20,035
|
|
|
23.9
|
%
|
|
N/A
|
|
|
|
|
6,710
|
|
|
8.0
|
%
|
||||
Tier 1 Leverage
|
|
20,016
|
|
|
7.3
|
%
|
|
N/A
|
|
|
|
|
10,969
|
|
|
4.0
|
%
|
||||
Supplementary Leverage Ratio
(1)
|
|
20,016
|
|
|
7.1
|
%
|
|
N/A
|
|
|
|
|
8,420
|
|
|
3.0
|
%
|
||||
CSB
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Common Equity Tier 1 Risk-Based Capital
|
|
$
|
15,856
|
|
|
22.7
|
%
|
|
$
|
4,550
|
|
|
6.5
|
%
|
|
$
|
3,150
|
|
|
4.5
|
%
|
Tier 1 Risk-Based Capital
|
|
15,856
|
|
|
22.7
|
%
|
|
5,600
|
|
|
8.0
|
%
|
|
4,200
|
|
|
6.0
|
%
|
|||
Total Risk-Based Capital
|
|
15,874
|
|
|
22.7
|
%
|
|
7,000
|
|
|
10.0
|
%
|
|
5,600
|
|
|
8.0
|
%
|
|||
Tier 1 Leverage
|
|
15,856
|
|
|
7.4
|
%
|
|
10,719
|
|
|
5.0
|
%
|
|
8,576
|
|
|
4.0
|
%
|
|||
Supplementary Leverage Ratio
(1)
|
|
15,856
|
|
|
7.2
|
%
|
|
N/A
|
|
|
N/A
|
|
|
6,619
|
|
|
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
|
%
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Net Capital
|
|
$
|
2,346
|
|
|
$
|
2,304
|
|
Minimum net capital required
|
|
0.250
|
|
|
0.250
|
|
||
2% of aggregate debit balances
|
|
424
|
|
|
436
|
|
||
Net Capital in excess of required net capital
|
|
$
|
1,922
|
|
|
$
|
1,868
|
|
|
Investor Services
|
|
Advisor Services
|
|
Total
|
||||||||||||||||||
Three Months Ended June 30,
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||
Net Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest revenue
|
$
|
1,154
|
|
|
$
|
1,063
|
|
|
$
|
455
|
|
|
$
|
344
|
|
|
$
|
1,609
|
|
|
$
|
1,407
|
|
Asset management and administration fees
|
560
|
|
|
569
|
|
|
226
|
|
|
245
|
|
|
786
|
|
|
814
|
|
||||||
Trading revenue
|
110
|
|
|
115
|
|
|
64
|
|
|
65
|
|
|
174
|
|
|
180
|
|
||||||
Other
|
67
|
|
|
65
|
|
|
45
|
|
|
20
|
|
|
112
|
|
|
85
|
|
||||||
Total net revenues
|
1,891
|
|
|
1,812
|
|
|
790
|
|
|
674
|
|
|
2,681
|
|
|
2,486
|
|
||||||
Expenses Excluding Interest
|
1,057
|
|
|
1,012
|
|
|
388
|
|
|
343
|
|
|
1,445
|
|
|
1,355
|
|
||||||
Income before taxes on income
|
$
|
834
|
|
|
$
|
800
|
|
|
$
|
402
|
|
|
$
|
331
|
|
|
$
|
1,236
|
|
|
$
|
1,131
|
|
|
Investor Services
|
|
Advisor Services
|
|
Total
|
||||||||||||||||||
Six Months Ended June 30,
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||
Net Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest revenue
|
$
|
2,349
|
|
|
$
|
2,020
|
|
|
$
|
941
|
|
|
$
|
650
|
|
|
$
|
3,290
|
|
|
$
|
2,670
|
|
Asset management and administration fees
|
1,093
|
|
|
1,162
|
|
|
448
|
|
|
503
|
|
|
1,541
|
|
|
1,665
|
|
||||||
Trading revenue
|
221
|
|
|
242
|
|
|
138
|
|
|
139
|
|
|
359
|
|
|
381
|
|
||||||
Other
|
139
|
|
|
129
|
|
|
75
|
|
|
39
|
|
|
214
|
|
|
168
|
|
||||||
Total net revenues
|
3,802
|
|
|
3,553
|
|
|
1,602
|
|
|
1,331
|
|
|
5,404
|
|
|
4,884
|
|
||||||
Expenses Excluding Interest
|
2,119
|
|
|
2,054
|
|
|
785
|
|
|
697
|
|
|
2,904
|
|
|
2,751
|
|
||||||
Income before taxes on income
|
$
|
1,683
|
|
|
$
|
1,499
|
|
|
$
|
817
|
|
|
$
|
634
|
|
|
$
|
2,500
|
|
|
$
|
2,133
|
|
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
|
||||||
April:
|
|
|
|
|
|
|
|
|
||||||
Share repurchase program
|
|
437
|
|
|
$
|
45.74
|
|
|
437
|
|
|
$
|
3,980
|
|
Employee transactions
(1)
|
|
4
|
|
|
$
|
43.88
|
|
|
N/A
|
|
|
N/A
|
|
|
May:
|
|
|
|
|
|
|
|
|
||||||
Share repurchase program
|
|
9,876
|
|
|
$
|
43.51
|
|
|
9,876
|
|
|
$
|
3,550
|
|
Employee transactions
(1)
|
|
5
|
|
|
$
|
45.45
|
|
|
N/A
|
|
|
N/A
|
|
|
June:
|
|
|
|
|
|
|
|
|
||||||
Share repurchase program
|
|
18,794
|
|
|
$
|
40.95
|
|
|
18,794
|
|
|
$
|
2,780
|
|
Employee transactions
(1)
|
|
8
|
|
|
$
|
41.90
|
|
|
N/A
|
|
|
N/A
|
|
|
Total:
|
|
|
|
|
|
|
|
|
||||||
Share repurchase program
|
|
29,107
|
|
|
$
|
41.91
|
|
|
29,107
|
|
|
$
|
2,780
|
|
Employee Transactions
(1)
|
|
17
|
|
|
$
|
43.39
|
|
|
N/A
|
|
|
N/A
|
|
Exhibit
Number
|
Exhibit
|
|
|
|
|
|
|
10.395
|
(1)
|
||
|
|
|
|
10.396
|
(1)
|
||
|
|
|
|
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 – the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
(2)
|
|
|
|
|
|
(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
June 30, 2019 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:
|
August 7, 2019
|
|
/s/ Peter Crawford
|
|
|
|
Peter Crawford
|
|
|
|
Executive Vice President and Chief Financial Officer
|
1 Year Schwab (Charles) Corp. Prfd C Chart |
1 Month Schwab (Charles) Corp. Prfd C Chart |
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