☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 94-3025021 | ||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock – $.01 par value per share | SCHW | New York Stock Exchange | ||||||
Depositary Shares, each representing a 1/40th ownership interest in a share of 5.95% Non-Cumulative Preferred Stock, Series D | SCHW PrD | New York Stock Exchange | ||||||
Depositary Shares, each representing a 1/40th ownership interest in a share of 4.450% Non-Cumulative Preferred Stock, Series J | SCHW PrJ | New York Stock Exchange |
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December 31, 2021 | Square Footage | |||||||
(amounts in thousands) | Leased | Owned | ||||||
Location | ||||||||
Corporate headquarters: | ||||||||
Westlake, TX | 188 | 687 | ||||||
Service and other office space: | ||||||||
Denver, CO | — | 767 | ||||||
Phoenix, AZ | 32 | 728 | ||||||
Omaha, NE | 119 | 578 | ||||||
Austin, TX | — | 561 | ||||||
San Francisco, CA | 417 | — | ||||||
Southlake, TX | 13 | 375 | ||||||
St. Louis, MO | — | 319 | ||||||
Chicago, IL | 237 | — | ||||||
Jersey City, NJ | 208 | — | ||||||
Indianapolis, IN | — | 161 | ||||||
Orlando, FL | 159 | — | ||||||
Richfield, OH | — | 117 | ||||||
San Diego, CA | 111 | — | ||||||
El Paso, TX | — | 105 |
December 31, | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | |||||||||||||||||||||||||||||
The Charles Schwab Corporation | $ | 100 | $ | 131 | $ | 107 | $ | 125 | $ | 141 | $ | 227 | |||||||||||||||||||||||
Standard & Poor’s 500 Index | $ | 100 | $ | 122 | $ | 116 | $ | 153 | $ | 181 | $ | 233 | |||||||||||||||||||||||
Dow Jones U.S. Investment Services Index | $ | 100 | $ | 125 | $ | 110 | $ | 137 | $ | 161 | $ | 226 |
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 | |||||||||||||||||||
October: | |||||||||||||||||||||||
Share repurchase program (1) | — | $ | — | — | $ | 1,780 | |||||||||||||||||
Employee transactions (2) | 39 | $ | 74.16 | N/A | N/A | ||||||||||||||||||
November: | |||||||||||||||||||||||
Share repurchase program (1) | — | $ | — | — | $ | 1,780 | |||||||||||||||||
Employee transactions (2) | 614 | $ | 82.07 | N/A | N/A | ||||||||||||||||||
December: | |||||||||||||||||||||||
Share repurchase program (1) | — | $ | — | — | $ | 1,780 | |||||||||||||||||
Employee transactions (2) | 120 | $ | 80.73 | N/A | N/A | ||||||||||||||||||
Total: | |||||||||||||||||||||||
Share repurchase program (1) | — | $ | — | — | $ | 1,780 | |||||||||||||||||
Employee transactions (2) | 773 | $ | 81.46 | N/A | N/A |
Growth Rate 1-Year 2020-2021 | 2021 | 2020 | 2019 | ||||||||||||||||||||
Client Metrics | |||||||||||||||||||||||
Net new client assets (in billions) (1) | (74)% | $ | 516.2 | $ | 1,952.5 | $ | 222.8 | ||||||||||||||||
Core net new client assets (in billions) | 98% | $ | 558.2 | $ | 281.9 | $ | 211.7 | ||||||||||||||||
Client assets (in billions, at year end) | 22% | $ | 8,138.0 | $ | 6,691.7 | $ | 4,038.8 | ||||||||||||||||
Average client assets (in billions) | 64% | $ | 7,493.8 | $ | 4,579.0 | $ | 3,682.0 | ||||||||||||||||
New brokerage accounts (in thousands) (2) | (61)% | 7,306 | 18,627 | 1,568 | |||||||||||||||||||
Active brokerage accounts (in thousands, at year end) | 12% | 33,165 | 29,629 | 12,333 | |||||||||||||||||||
Assets receiving ongoing advisory services (in billions, at year end) | 23% | $ | 4,064.4 | $ | 3,300.1 | $ | 2,106.8 | ||||||||||||||||
Client cash as a percentage of client assets (at year end) | 10.9 | % | 12.3 | % | 11.3 | % | |||||||||||||||||
Company Financial Information and Metrics | |||||||||||||||||||||||
Total net revenues | 58% | $ | 18,520 | $ | 11,691 | $ | 10,721 | ||||||||||||||||
Total expenses excluding interest | 46% | 10,807 | 7,391 | 5,873 | |||||||||||||||||||
Income before taxes on income | 79% | 7,713 | 4,300 | 4,848 | |||||||||||||||||||
Taxes on income | 86% | 1,858 | 1,001 | 1,144 | |||||||||||||||||||
Net income | 77% | $ | 5,855 | $ | 3,299 | $ | 3,704 | ||||||||||||||||
Preferred stock dividends and other | 93% | 495 | 256 | 178 | |||||||||||||||||||
Net income available to common stockholders | 76% | $ | 5,360 | $ | 3,043 | $ | 3,526 | ||||||||||||||||
Earnings per common share — diluted (3) | 33% | $ | 2.83 | $ | 2.12 | $ | 2.67 | ||||||||||||||||
Net revenue growth from prior year | 58 | % | 9 | % | 6 | % | |||||||||||||||||
Pre-tax profit margin | 41.6 | % | 36.8 | % | 45.2 | % | |||||||||||||||||
Return on average common stockholders’ equity | 11 | % | 9 | % | 19 | % | |||||||||||||||||
Expenses excluding interest as a percentage of average client assets | 0.14 | % | 0.16 | % | 0.16 | % | |||||||||||||||||
Consolidated Tier 1 Leverage Ratio (at year end) | 6.2 | % | 6.3 | % | 7.3 | % | |||||||||||||||||
Non-GAAP Financial Measures (4) | |||||||||||||||||||||||
Adjusted total expenses (5) | $ | 9,724 | $ | 6,759 | $ | 5,820 | |||||||||||||||||
Adjusted diluted EPS (3) | $ | 3.25 | $ | 2.45 | $ | 2.70 | |||||||||||||||||
Return on tangible common equity | 22 | % | 15 | % | 21 | % |
Year Ended December 31, | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||||
Growth Rate 2020-2021 | Amount | % of Total Net Revenues | Amount | % of Total Net Revenues | Amount | % of Total Net Revenues | ||||||||||||||||||||||||||
Net interest revenue | ||||||||||||||||||||||||||||||||
Interest revenue | 30 | % | $ | 8,506 | 46 | % | $ | 6,531 | 56 | % | $ | 7,580 | 71 | % | ||||||||||||||||||
Interest expense | 14 | % | (476) | (3) | % | (418) | (4) | % | (1,064) | (10) | % | |||||||||||||||||||||
Net interest revenue | 31 | % | 8,030 | 43 | % | 6,113 | 52 | % | 6,516 | 61 | % | |||||||||||||||||||||
Asset management and administration fees | ||||||||||||||||||||||||||||||||
Mutual funds, ETFs, and collective trust funds (CTFs) | 11 | % | 1,961 | 11 | % | 1,770 | 15 | % | 1,747 | 16 | % | |||||||||||||||||||||
Advice solutions | 38 | % | 1,993 | 11 | % | 1,443 | 12 | % | 1,198 | 11 | % | |||||||||||||||||||||
Other | 22 | % | 320 | 1 | % | 262 | 3 | % | 266 | 3 | % | |||||||||||||||||||||
Asset management and administration fees | 23 | % | 4,274 | 23 | % | 3,475 | 30 | % | 3,211 | 30 | % | |||||||||||||||||||||
Trading revenue | ||||||||||||||||||||||||||||||||
Commissions | 177 | % | 2,050 | 11 | % | 739 | 6 | % | 549 | 5 | % | |||||||||||||||||||||
Order flow revenue | N/M | 2,053 | 11 | % | 621 | 6 | % | 135 | 1 | % | ||||||||||||||||||||||
Principal transactions | (13) | % | 49 | — | 56 | — | 68 | 1 | % | |||||||||||||||||||||||
Trading revenue | 193 | % | 4,152 | 22 | % | 1,416 | 12 | % | 752 | 7 | % | |||||||||||||||||||||
Bank deposit account fees | N/M | 1,315 | 7 | % | 355 | 3 | % | — | — | |||||||||||||||||||||||
Other | 126 | % | 749 | 5 | % | 332 | 3 | % | 242 | 2 | % | |||||||||||||||||||||
Total net revenues | 58 | % | $ | 18,520 | 100 | % | $ | 11,691 | 100 | % | $ | 10,721 | 100 | % |
Year Ended December 31, | 2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Average Balance | Interest Revenue/ Expense | Average Yield/ Rate | Average Balance | Interest Revenue/ Expense | Average Yield/ Rate | Average Balance | Interest Revenue/ Expense | Average Yield/ Rate | |||||||||||||||||||||||||||||||||||||||||||||
Interest-earning assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 40,325 | $ | 40 | 0.10 | % | $ | 39,052 | $ | 120 | 0.30 | % | $ | 23,512 | $ | 518 | 2.17 | % | |||||||||||||||||||||||||||||||||||
Cash and investments segregated | 43,942 | 24 | 0.05 | % | 34,100 | 141 | 0.41 | % | 15,694 | 345 | 2.17 | % | |||||||||||||||||||||||||||||||||||||||||
Receivables from brokerage clients | 77,768 | 2,455 | 3.11 | % | 28,058 | 848 | 2.97 | % | 19,270 | 821 | 4.20 | % | |||||||||||||||||||||||||||||||||||||||||
Available for sale securities (1,2) | 357,122 | 4,641 | 1.30 | % | 253,555 | 4,537 | 1.78 | % | 58,181 | 1,560 | 2.67 | % | |||||||||||||||||||||||||||||||||||||||||
Held to maturity securities (1,2) | — | — | — | — | — | — | 134,708 | 3,591 | 2.65 | % | |||||||||||||||||||||||||||||||||||||||||||
Bank loans | 28,789 | 620 | 2.15 | % | 20,932 | 545 | 2.60 | % | 16,832 | 584 | 3.47 | % | |||||||||||||||||||||||||||||||||||||||||
Total interest-earning assets | 547,946 | 7,780 | 1.41 | % | 375,697 | 6,191 | 1.64 | % | 268,197 | 7,419 | 2.75 | % | |||||||||||||||||||||||||||||||||||||||||
Securities lending revenue | 720 | 334 | 147 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other interest revenue | 6 | 6 | 14 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest-earning assets | $ | 547,946 | $ | 8,506 | 1.54 | % | $ | 375,697 | $ | 6,531 | 1.73 | % | $ | 268,197 | $ | 7,580 | 2.80 | % | |||||||||||||||||||||||||||||||||||
Funding sources | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Bank deposits | $ | 381,549 | $ | 54 | 0.01 | % | $ | 291,206 | $ | 93 | 0.03 | % | $ | 212,605 | $ | 700 | 0.33 | % | |||||||||||||||||||||||||||||||||||
Payables to brokerage clients | 91,667 | 9 | 0.01 | % | 46,347 | 12 | 0.02 | % | 24,353 | 79 | 0.33 | % | |||||||||||||||||||||||||||||||||||||||||
Short-term borrowings (3) | 3,040 | 9 | 0.30 | % | 89 | — | 0.20 | % | 17 | — | 2.36 | % | |||||||||||||||||||||||||||||||||||||||||
Long-term debt | 17,704 | 384 | 2.17 | % | 8,992 | 289 | 3.22 | % | 7,199 | 258 | 3.58 | % | |||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 493,960 | 456 | 0.09 | % | 346,634 | 394 | 0.11 | % | 244,174 | 1,037 | 0.42 | % | |||||||||||||||||||||||||||||||||||||||||
Non-interest-bearing funding sources | 53,986 | 29,063 | 24,023 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Securities lending expense | 24 | 33 | 38 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other interest expense | (4) | (9) | (11) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total funding sources | $ | 547,946 | $ | 476 | 0.09 | % | $ | 375,697 | $ | 418 | 0.11 | % | $ | 268,197 | $ | 1,064 | 0.39 | % | |||||||||||||||||||||||||||||||||||
Net interest revenue | $ | 8,030 | 1.45 | % | $ | 6,113 | 1.62 | % | $ | 6,516 | 2.41 | % |
Year Ended December 31, | 2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Average Client Assets | Revenue | Average Fee | Average Client Assets | Revenue | Average Fee | Average Client Assets | Revenue | Average Fee | |||||||||||||||||||||||||||||||||||||||||||||
Schwab money market funds before fee waivers | $ | 155,821 | $ | 457 | 0.29 | % | $ | 200,119 | $ | 605 | 0.30 | % | $ | 173,558 | $ | 525 | 0.30 | % | |||||||||||||||||||||||||||||||||||
Fee waivers | (326) | (127) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Schwab money market funds | 155,821 | 131 | 0.08 | % | 200,119 | 478 | 0.24 | % | 173,558 | 525 | 0.30 | % | |||||||||||||||||||||||||||||||||||||||||
Schwab equity and bond funds, ETFs, and CTFs | 423,999 | 380 | 0.09 | % | 301,598 | 300 | 0.10 | % | 267,213 | 298 | 0.11 | % | |||||||||||||||||||||||||||||||||||||||||
Mutual Fund OneSource® and other non- transaction fee funds | 229,342 | 724 | 0.32 | % | 192,464 | 599 | 0.31 | % | 191,552 | 606 | 0.32 | % | |||||||||||||||||||||||||||||||||||||||||
Other third-party mutual funds and ETFs (1,2) | 898,248 | 726 | 0.08 | % | 525,379 | 393 | 0.07 | % | 478,037 | 318 | 0.07 | % | |||||||||||||||||||||||||||||||||||||||||
Total mutual funds, ETFs, and CTFs (3) | $ | 1,707,410 | 1,961 | 0.11 | % | $ | 1,219,560 | 1,770 | 0.15 | % | $ | 1,110,360 | 1,747 | 0.16 | % | ||||||||||||||||||||||||||||||||||||||
Advice solutions (3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Fee-based | $ | 452,503 | 1,993 | 0.44 | % | $ | 306,010 | 1,443 | 0.47 | % | $ | 246,888 | 1,198 | 0.49 | % | ||||||||||||||||||||||||||||||||||||||
Non-fee-based | 89,911 | — | — | 73,161 | — | — | 70,191 | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Total advice solutions | $ | 542,414 | 1,993 | 0.37 | % | $ | 379,171 | 1,443 | 0.38 | % | $ | 317,079 | 1,198 | 0.38 | % | ||||||||||||||||||||||||||||||||||||||
Other balance-based fees (4) | 614,787 | 259 | 0.04 | % | 451,350 | 208 | 0.05 | % | 432,613 | 216 | 0.05 | % | |||||||||||||||||||||||||||||||||||||||||
Other (5) | 61 | 54 | 50 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total asset management and administration fees | $ | 4,274 | $ | 3,475 | $ | 3,211 |
Schwab Money | Schwab Equity and | Mutual Fund OneSource® | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Market Funds | Bond Funds, ETFs, and CTFs | and Other NTF Funds | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | 2021 | 2020 | 2019 | 2021 | 2020 | 2019 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 176,089 | $ | 200,826 | $ | 153,472 | $ | 341,689 | $ | 286,275 | $ | 209,471 | $ | 223,857 | $ | 202,068 | $ | 180,532 | ||||||||||||||||||||||||||||||||||||||
Net inflows (outflows) | (29,621) | (25,894) | 44,077 | 48,291 | 17,200 | 26,039 | (15,760) | (20,246) | (19,930) | |||||||||||||||||||||||||||||||||||||||||||||||
Net market gains (losses) and other | 41 | 1,157 | 3,277 | 64,884 | 38,214 | 50,765 | 26,843 | 42,035 | 41,466 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | 146,509 | $ | 176,089 | $ | 200,826 | $ | 454,864 | $ | 341,689 | $ | 286,275 | $ | 234,940 | $ | 223,857 | $ | 202,068 |
Year Ended December 31, | Growth Rate 2020-2021 | 2021 | 2020 | 2019 | |||||||||||||||||||
Trading Revenue | 193 | % | $ | 4,152 | $ | 1,416 | $ | 752 | |||||||||||||||
Clients' daily average trades (DATs) (in thousands) | 150 | % | 6,507.0 | 2,602.6 | 748.9 | ||||||||||||||||||
Number of trading days | — | 251.5 | 252.0 | 250.5 | |||||||||||||||||||
Revenue per trade (1) | 18 | % | $ | 2.54 | $ | 2.16 | $ | 4.01 |
Growth Rate 2020-2021 | 2021 | 2020 | 2019 | ||||||||||||||||||||
Compensation and benefits | |||||||||||||||||||||||
Salaries and wages | 31 | % | $ | 3,161 | $ | 2,416 | $ | 1,958 | |||||||||||||||
Incentive compensation | 55 | % | 1,443 | 932 | 804 | ||||||||||||||||||
Employee benefits and other | 40 | % | 846 | 606 | 558 | ||||||||||||||||||
Total compensation and benefits | 38 | % | $ | 5,450 | $ | 3,954 | $ | 3,320 | |||||||||||||||
Professional services | 18 | % | 994 | 843 | 702 | ||||||||||||||||||
Occupancy and equipment | 39 | % | 976 | 703 | 559 | ||||||||||||||||||
Advertising and market development | 49 | % | 485 | 326 | 307 | ||||||||||||||||||
Communications | 66 | % | 587 | 353 | 253 | ||||||||||||||||||
Depreciation and amortization | 33 | % | 549 | 414 | 322 | ||||||||||||||||||
Amortization of acquired intangible assets | N/M | 615 | 190 | 27 | |||||||||||||||||||
Regulatory fees and assessments | 69 | % | 275 | 163 | 122 | ||||||||||||||||||
Other | 97 | % | 876 | 445 | 261 | ||||||||||||||||||
Total expenses excluding interest | 46 | % | $ | 10,807 | $ | 7,391 | $ | 5,873 | |||||||||||||||
Expenses as a percentage of total net revenues | |||||||||||||||||||||||
Compensation and benefits | 29 | % | 34 | % | 31 | % | |||||||||||||||||
Advertising and market development | 3 | % | 3 | % | 3 | % | |||||||||||||||||
Full-time equivalent employees (in thousands) | |||||||||||||||||||||||
At year end | 4 | % | 33.4 | 32.0 | 19.7 | ||||||||||||||||||
Average | 36 | % | 32.5 | 23.9 | 20.0 |
Investor Services | Advisor Services | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Growth Rate 2020-2021 | 2021 | 2020 | 2019 | Growth Rate 2020-2021 | 2021 | 2020 | 2019 | Growth Rate 2020-2021 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest revenue | 38% | $ | 6,052 | $ | 4,391 | $ | 4,685 | 15% | $ | 1,978 | $ | 1,722 | $ | 1,831 | 31% | $ | 8,030 | $ | 6,113 | $ | 6,516 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset management and administration fees | 23% | 3,130 | 2,544 | 2,289 | 23% | 1,144 | 931 | 922 | 23% | 4,274 | 3,475 | 3,211 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trading revenue | N/M | 3,753 | 1,156 | 503 | 53% | 399 | 260 | 249 | 193% | 4,152 | 1,416 | 752 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bank deposit account fees | N/M | 964 | 255 | — | N/M | 351 | 100 | — | N/M | 1,315 | 355 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 115% | 562 | 262 | 146 | 167% | 187 | 70 | 96 | 126% | 749 | 332 | 242 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total net revenues | 68% | 14,461 | 8,608 | 7,623 | 32% | 4,059 | 3,083 | 3,098 | 58% | 18,520 | 11,691 | 10,721 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses Excluding Interest | 50% | 8,289 | 5,529 | 4,284 | 35% | 2,518 | 1,862 | 1,589 | 46% | 10,807 | 7,391 | 5,873 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income before taxes on income | 100% | $ | 6,172 | $ | 3,079 | $ | 3,339 | 26% | $ | 1,541 | $ | 1,221 | $ | 1,509 | 79% | $ | 7,713 | $ | 4,300 | $ | 4,848 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net new client assets (in billions) (1,2,3) | (82)% | $ | 200.9 | $ | 1,106.4 | $ | 115.6 | (63)% | $ | 315.3 | $ | 846.1 | $ | 107.2 | (74)% | $ | 516.2 | $ | 1,952.5 | $ | 222.8 |
December 31, | 2021 | 2020 | ||||||
Increase of 100 basis points | 14.1% | 14.2% | ||||||
Decrease of 100 basis points | (4.5)% | (4.3)% |
Description | Borrower | Outstanding | Available | ||||||||
Federal Home Loan Bank secured credit facilities | Banking subsidiaries | $ | — | $ | 63,476 | ||||||
Federal Reserve discount window | Banking subsidiaries | — | 11,957 | ||||||||
Uncommitted, unsecured lines of credit with various external banks | CSC, CS&Co | — | 1,522 | ||||||||
Unsecured commercial paper (1) | CSC | 3,006 | 1,994 | ||||||||
Committed, unsecured credit facility with various external banks | TDAC | — | 600 | ||||||||
Secured uncommitted lines of credit with various external banks (2) | TDAC | 1,850 | — |
Average for the | |||||
Three Months Ended December 31, 2021 | |||||
Total eligible HQLA | $ | 117,507 | |||
Net cash outflows | $ | 110,405 | |||
LCR | 106 | % |
Par Outstanding | Maturity | Weighted-Average Interest Rate | Moody’s | Standard & Poor’s | Fitch | |||||||||||||||
CSC Senior Notes | $ | 17,768 | 2022 - 2031 | 2.35% | A2 | A | A | |||||||||||||
TDA Holding Senior Notes | 963 | 2022 - 2029 | 3.06% | A2 | A | — | ||||||||||||||
Issuance Date | Issuance Amount | Maturity Date | Interest Rate | Interest Payable | ||||||||||
May 22, 2019 | $ | 600 | 5/22/2029 | 3.250% | Semi-annually | |||||||||
March 24, 2020 | $ | 600 | 3/24/2025 | 4.200% | Semi-annually | |||||||||
March 24, 2020 | $ | 500 | 3/22/2030 | 4.625% | Semi-annually | |||||||||
December 11, 2020 | $ | 1,250 | 3/11/2026 | 0.900% | Semi-annually | |||||||||
December 11, 2020 | $ | 750 | 3/11/2031 | 1.650% | Semi-annually | |||||||||
March 18, 2021 | $ | 1,250 | 3/18/2024 | SOFR (1) + 0.500% | Quarterly | |||||||||
March 18, 2021 | $ | 1,500 | 3/18/2024 | 0.750% | Semi-annually | |||||||||
March 18, 2021 | $ | 1,250 | 3/20/2028 | 2.000% | Semi-annually | |||||||||
May 13, 2021 | $ | 500 | 5/13/2026 | SOFR (1) + 0.520% | Quarterly | |||||||||
May 13, 2021 | $ | 1,000 | 5/13/2026 | 1.150% | Semi-annually | |||||||||
May 13, 2021 | $ | 750 | 5/13/2031 | 2.300% | Semi-annually | |||||||||
August 26, 2021 | $ | 850 | 12/1/2031 | 1.950% | Semi-annually |
Date Issued and Sold | Net Proceeds | |||||||
Series G | April 30, 2020 | $ | 2,470 | |||||
Series H | December 11, 2020 | $ | 2,470 | |||||
Series I | March 18, 2021 | $ | 2,222 | |||||
Series J | March 30, 2021 | $ | 584 |
December 31, | 2021 | 2020 | |||||||||||||||||||||
CSC | CSB | CSC | CSB | ||||||||||||||||||||
Total stockholders’ equity | $ | 56,261 | $ | 27,035 | $ | 56,060 | $ | 22,223 | |||||||||||||||
Less: | |||||||||||||||||||||||
Preferred stock | 9,954 | — | 7,733 | — | |||||||||||||||||||
Common Equity Tier 1 Capital before regulatory adjustments | $ | 46,307 | $ | 27,035 | $ | 48,327 | $ | 22,223 | |||||||||||||||
Less: | |||||||||||||||||||||||
Goodwill, net of associated deferred tax liabilities | $ | 11,857 | $ | 13 | $ | 11,897 | $ | 13 | |||||||||||||||
Other intangible assets, net of associated deferred tax liabilities | 7,579 | — | 8,103 | — | |||||||||||||||||||
Deferred tax assets, net of valuation allowances and deferred tax liabilities | 13 | 12 | 17 | 12 | |||||||||||||||||||
AOCI adjustment | (1,109) | (1,004) | 5,394 | 4,672 | |||||||||||||||||||
Common Equity Tier 1 Capital | $ | 27,967 | $ | 28,014 | $ | 22,916 | $ | 17,526 | |||||||||||||||
Tier 1 Capital | $ | 37,921 | $ | 28,014 | $ | 30,649 | $ | 17,526 | |||||||||||||||
Total Capital | 37,950 | 28,033 | 30,688 | 17,558 | |||||||||||||||||||
Risk-Weighted Assets | 141,969 | 104,409 | 123,881 | 91,062 | |||||||||||||||||||
Total Leverage Exposure | 614,466 | 400,532 | 491,469 | 325,437 | |||||||||||||||||||
Common Equity Tier 1 Capital/Risk-Weighted Assets | 19.7 | % | 26.8 | % | 18.5 | % | 19.2 | % | |||||||||||||||
Tier 1 Capital/Risk-Weighted Assets | 26.7 | % | 26.8 | % | 24.7 | % | 19.2 | % | |||||||||||||||
Total Capital/Risk-Weighted Assets | 26.7 | % | 26.8 | % | 24.8 | % | 19.3 | % | |||||||||||||||
Tier 1 Leverage Ratio | 6.2 | % | 7.1 | % | 6.3 | % | 5.5 | % | |||||||||||||||
Supplementary Leverage Ratio | 6.2 | % | 7.0 | % | 6.2 | % | 5.4 | % |
Date of Declaration | Quarterly Cash Increase Per Common Share | % Increase | New Quarterly Dividend Per Common Share | ||||||||||||||
January 30, 2020 | $ | 0.01 | 6 | % | $ | 0.18 | |||||||||||
Year Ended December 31, | 2021 | 2020 | |||||||||||||||||||||
Cash Paid | Per Share Amount | Cash Paid | Per Share Amount | ||||||||||||||||||||
Common and Nonvoting Common Stock | $ | 1,366 | $ | 0.72 | $ | 1,039 | $ | 0.72 | |||||||||||||||
Series A Preferred Stock (1) | 28 | 70.00 | 28 | 70.00 | |||||||||||||||||||
Series C Preferred Stock (2) | 18 | 30.00 | 36 | 60.00 | |||||||||||||||||||
Series D Preferred Stock (3) | 45 | 59.52 | 45 | 59.52 | |||||||||||||||||||
Series E Preferred Stock (4) | 28 | 4,625.00 | 28 | 4,625.00 | |||||||||||||||||||
Series F Preferred Stock (5) | 25 | 5,000.00 | 25 | 5,000.00 | |||||||||||||||||||
Series G Preferred Stock (6) | 134 | 5,375.00 | 79 | 3,150.35 | |||||||||||||||||||
Series H Preferred Stock (7) | 97 | 3,888.89 | N/A | N/A | |||||||||||||||||||
Series I Preferred Stock (8) | 63 | 2,811.11 | N/A | N/A | |||||||||||||||||||
Series J Preferred Stock (9) | 18 | 29.80 | N/A | N/A |
Non-GAAP Adjustment or Measure | Definition | Usefulness to Investors and Uses by Management | ||||||
Acquisition and integration-related costs and amortization of acquired intangible assets | Schwab adjusts certain GAAP financial measures to exclude the impact of acquisition and integration-related costs incurred as a result of the Company’s acquisitions, amortization of acquired intangible assets, and, where applicable, the income tax effect of these expenses. Adjustments made to exclude amortization of acquired intangible assets are reflective of all acquired intangible assets, which were recorded as part of purchase accounting. These acquired intangible assets contribute to the Company’s revenue generation. Amortization of acquired intangible assets will continue in future periods over their remaining useful lives. | We exclude acquisition and integration-related costs and amortization of acquired intangible assets for the purpose of calculating certain non-GAAP measures because we believe doing so provides additional transparency of Schwab’s ongoing operations, and is useful in both evaluating the operating performance of the business and facilitating comparison of results with prior and future periods. Acquisition and integration-related costs fluctuate based on the timing of acquisitions and integration activities, thereby limiting comparability of results among periods, and are not representative of the costs of running the Company’s ongoing business. Amortization of acquired intangible assets is excluded because management does not believe it is indicative of the Company’s underlying operating performance. | ||||||
Return on tangible common equity | Return on tangible common equity represents annualized adjusted net income available to common stockholders as a percentage of average tangible common equity. Tangible common equity represents common equity less goodwill, acquired intangible assets – net, and related deferred tax liabilities. | Acquisitions typically result in the recognition of significant amounts of goodwill and acquired intangible assets. We believe return on tangible common equity may be useful to investors as a supplemental measure to facilitate assessing capital efficiency and returns relative to the composition of Schwab’s balance sheet. |
Year Ended December 31, | ||||||||||||||
2021 | 2020 | 2019 | ||||||||||||
Total expenses excluding interest (GAAP) | $ | 10,807 | $ | 7,391 | $ | 5,873 | ||||||||
Acquisition and integration-related costs (1) | (468) | (442) | (26) | |||||||||||
Amortization of acquired intangible assets | (615) | (190) | (27) | |||||||||||
Adjusted total expenses (non-GAAP) | $ | 9,724 | $ | 6,759 | $ | 5,820 |
Year Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Amount | Diluted EPS | Amount | Diluted EPS | Amount | Diluted EPS | |||||||||||||||
Net income available to common stockholders (GAAP), Earnings per common share — diluted (GAAP) | $ | 5,360 | $ | 2.83 | $ | 3,043 | $ | 2.12 | $ | 3,526 | $ | 2.67 | ||||||||
Acquisition and integration-related costs | 468 | .25 | 442 | .31 | 26 | .02 | ||||||||||||||
Amortization of acquired intangible assets | 615 | .32 | 190 | .13 | 27 | .02 | ||||||||||||||
Income tax effects (1) | (268) | (.15) | (154) | (.11) | (13) | (.01) | ||||||||||||||
Adjusted net income available to common stockholders (non-GAAP), Adjusted diluted EPS (non-GAAP) | $ | 6,175 | $ | 3.25 | $ | 3,521 | $ | 2.45 | $ | 3,566 | $ | 2.70 |
Year Ended December 31, | ||||||||||||||
2021 | 2020 | 2019 | ||||||||||||
Return on average common stockholders’ equity (GAAP) | 11 | % | 9 | % | 19 | % | ||||||||
Average common stockholders’ equity | $ | 47,318 | $ | 33,640 | $ | 18,415 | ||||||||
Less: Average goodwill | (11,952) | (6,590) | (1,227) | |||||||||||
Less: Average acquired intangible assets — net | (9,685) | (5,059) | (140) | |||||||||||
Plus: Average deferred tax liabilities related to goodwill and acquired intangible assets — net | 1,919 | 1,005 | 67 | |||||||||||
Average tangible common equity | $ | 27,600 | $ | 22,996 | $ | 17,115 | ||||||||
Adjusted net income available to common stockholders (1) | $ | 6,175 | $ | 3,521 | $ | 3,566 | ||||||||
Return on tangible common equity (non-GAAP) | 22 | % | 15 | % | 21 | % |
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Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34) | ||||||||
Consolidated Statements of Income | |||||||||||||||||
(In Millions, Except Per Share Amounts) | |||||||||||||||||
Year Ended December 31, | 2021 | 2020 | 2019 | ||||||||||||||
Net Revenues | |||||||||||||||||
Interest revenue | $ | 8,506 | $ | 6,531 | $ | 7,580 | |||||||||||
Interest expense | (476) | (418) | (1,064) | ||||||||||||||
Net interest revenue | 8,030 | 6,113 | 6,516 | ||||||||||||||
Asset management and administration fees (1) | 4,274 | 3,475 | 3,211 | ||||||||||||||
Trading revenue | 4,152 | 1,416 | 752 | ||||||||||||||
Bank deposit account fees | 1,315 | 355 | — | ||||||||||||||
Other | 749 | 332 | 242 | ||||||||||||||
Total net revenues | 18,520 | 11,691 | 10,721 | ||||||||||||||
Expenses Excluding Interest | |||||||||||||||||
Compensation and benefits | 5,450 | 3,954 | 3,320 | ||||||||||||||
Professional services | 994 | 843 | 702 | ||||||||||||||
Occupancy and equipment | 976 | 703 | 559 | ||||||||||||||
Advertising and market development | 485 | 326 | 307 | ||||||||||||||
Communications | 587 | 353 | 253 | ||||||||||||||
Depreciation and amortization | 549 | 414 | 322 | ||||||||||||||
Amortization of acquired intangible assets | 615 | 190 | 27 | ||||||||||||||
Regulatory fees and assessments | 275 | 163 | 122 | ||||||||||||||
Other | 876 | 445 | 261 | ||||||||||||||
Total expenses excluding interest | 10,807 | 7,391 | 5,873 | ||||||||||||||
Income before taxes on income | 7,713 | 4,300 | 4,848 | ||||||||||||||
Taxes on income | 1,858 | 1,001 | 1,144 | ||||||||||||||
Net Income | 5,855 | 3,299 | 3,704 | ||||||||||||||
Preferred stock dividends and other | 495 | 256 | 178 | ||||||||||||||
Net Income Available to Common Stockholders | $ | 5,360 | $ | 3,043 | $ | 3,526 | |||||||||||
Weighted-Average Common Shares Outstanding: | |||||||||||||||||
Basic | 1,887 | 1,429 | 1,311 | ||||||||||||||
Diluted | 1,897 | 1,435 | 1,320 | ||||||||||||||
Earnings Per Common Shares Outstanding (2): | |||||||||||||||||
Basic | $ | 2.84 | $ | 2.13 | $ | 2.69 | |||||||||||
Diluted | $ | 2.83 | $ | 2.12 | $ | 2.67 | |||||||||||
Consolidated Statements of Comprehensive Income | |||||||||||||||||
(In Millions) | |||||||||||||||||
Year Ended December 31, | 2021 | 2020 | 2019 | ||||||||||||||
Net income | $ | 5,855 | $ | 3,299 | $ | 3,704 | |||||||||||
Other comprehensive income (loss), before tax: | |||||||||||||||||
Change in net unrealized gain (loss) on available for sale securities: | |||||||||||||||||
Net unrealized gain (loss) | (8,521) | 6,961 | 430 | ||||||||||||||
Other reclassifications included in other revenue | (4) | (4) | (6) | ||||||||||||||
Change in net unrealized gain (loss) on held to maturity securities: | |||||||||||||||||
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale | — | — | 36 | ||||||||||||||
Other | (11) | 8 | (14) | ||||||||||||||
Other comprehensive income (loss), before tax | (8,536) | 6,965 | 446 | ||||||||||||||
Income tax effect | 2,033 | (1,659) | (106) | ||||||||||||||
Other comprehensive income (loss), net of tax | (6,503) | 5,306 | 340 | ||||||||||||||
Comprehensive Income (Loss) | $ | (648) | $ | 8,605 | $ | 4,044 |
Consolidated Balance Sheets | |||||||||||
(In Millions, Except Per Share and Share Amounts) | |||||||||||
December 31, | 2021 | 2020 | |||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 62,975 | $ | 40,348 | |||||||
Cash and investments segregated and on deposit for regulatory purposes (including resale agreements of $13,096 and $14,904 at December 31, 2021 and 2020, respectively) | 53,949 | 50,399 | |||||||||
Receivables from brokerage clients — net | 90,565 | 64,440 | |||||||||
Available for sale securities (amortized cost of $391,482 and $330,248 at December 31, 2021 and 2020, respectively) | 390,054 | 337,400 | |||||||||
Bank loans — net | 34,636 | 23,813 | |||||||||
Equipment, office facilities, and property — net | 3,442 | 2,883 | |||||||||
Goodwill | 11,952 | 11,952 | |||||||||
Acquired intangible assets — net | 9,379 | 9,991 | |||||||||
Other assets | 10,318 | 7,783 | |||||||||
Total assets | $ | 667,270 | $ | 549,009 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Bank deposits | $ | 443,778 | $ | 358,022 | |||||||
Payables to brokerage clients | 125,671 | 104,201 | |||||||||
Accrued expenses and other liabilities | 17,791 | 17,094 | |||||||||
Short-term borrowings | 4,855 | — | |||||||||
Long-term debt | 18,914 | 13,632 | |||||||||
Total liabilities | 611,009 | 492,949 | |||||||||
Stockholders’ equity: | |||||||||||
Preferred stock — $.01 par value per share; aggregate liquidation preference of $10,100 and $7,850 at December 31, 2021 and 2020, respectively | 9,954 | 7,733 | |||||||||
Common stock — 3 billion shares authorized; $.01 par value per share; 1,994,895,180 shares issued at December 31, 2021 and 2020 | 20 | 20 | |||||||||
Nonvoting common stock — 300 million shares authorized; $.01 par value per share; 79,293,695 shares issued at December 31, 2021 and 2020 | 1 | 1 | |||||||||
Additional paid-in capital | 26,741 | 26,515 | |||||||||
Retained earnings | 25,992 | 21,975 | |||||||||
Treasury stock, at cost — 180,959,274 and 193,577,648 shares at December 31, 2021 and 2020, respectively | (5,338) | (5,578) | |||||||||
Accumulated other comprehensive income (loss) | (1,109) | 5,394 | |||||||||
Total stockholders’ equity | 56,261 | 56,060 | |||||||||
Total liabilities and stockholders’ equity | $ | 667,270 | $ | 549,009 |
Consolidated Statements of Stockholders’ Equity | |||||||||||||||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||||||||||||
Nonvoting Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Retained Earnings | Treasury Stock, at cost | ||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Total | |||||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | 2,793 | 1,488 | $ | 15 | — | $ | — | $ | 4,499 | $ | 17,329 | $ | (3,714) | $ | (252) | $ | 20,670 | |||||||||||||||||
Net income | — | — | — | — | — | — | 3,704 | — | — | 3,704 | |||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | — | — | — | 340 | 340 | |||||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | — | — | — | (161) | — | — | (161) | |||||||||||||||||||||||||
Dividends declared on common stock — $.68 per share | — | — | — | — | — | — | (899) | — | — | (899) | |||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | — | — | (2,220) | — | (2,220) | |||||||||||||||||||||||||
Stock option exercises and other | — | — | — | — | — | (56) | — | 174 | — | 118 | |||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | 171 | — | — | — | 171 | |||||||||||||||||||||||||
Other | — | — | — | — | — | 42 | (13) | (7) | — | 22 | |||||||||||||||||||||||||
Balance at December 31, 2019 | 2,793 | 1,488 | 15 | — | — | 4,656 | 19,960 | (5,767) | 88 | 21,745 | |||||||||||||||||||||||||
Net income | — | — | — | — | — | — | 3,299 | — | — | 3,299 | |||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | — | — | — | 5,306 | 5,306 | |||||||||||||||||||||||||
Acquisition of TD Ameritrade | — | 509 | 5 | 77 | 1 | 21,757 | — | (5) | — | 21,758 | |||||||||||||||||||||||||
Issuance of preferred stock, net | 4,940 | — | — | — | — | — | — | — | — | 4,940 | |||||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | — | — | — | (240) | — | — | (240) | |||||||||||||||||||||||||
Dividends declared on common stock — $.72 per share | — | — | — | — | — | — | (1,040) | — | — | (1,040) | |||||||||||||||||||||||||
Stock option exercises and other | — | — | — | — | — | (121) | — | 200 | — | 79 | |||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | 192 | — | — | — | 192 | |||||||||||||||||||||||||
Other | — | (2) | — | 2 | — | 31 | (4) | (6) | — | 21 | |||||||||||||||||||||||||
Balance at December 31, 2020 | 7,733 | 1,995 | 20 | 79 | 1 | 26,515 | 21,975 | (5,578) | 5,394 | 56,060 | |||||||||||||||||||||||||
Net income | — | — | — | — | — | — | 5,855 | — | — | 5,855 | |||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | — | — | — | (6,503) | (6,503) | |||||||||||||||||||||||||
Issuance of preferred stock, net | 2,806 | — | — | — | — | — | — | — | — | 2,806 | |||||||||||||||||||||||||
Redemption of preferred stock | (585) | — | — | — | — | — | (15) | — | — | (600) | |||||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | — | — | — | (456) | — | — | (456) | |||||||||||||||||||||||||
Dividends declared on common stock — $.72 per share | — | — | — | — | — | — | (1,367) | — | — | (1,367) | |||||||||||||||||||||||||
Stock option exercises and other | — | — | — | — | — | (84) | — | 305 | — | 221 | |||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | 229 | — | — | — | 229 | |||||||||||||||||||||||||
Other | — | — | — | — | — | 81 | — | (65) | — | 16 | |||||||||||||||||||||||||
Balance at December 31, 2021 | $ | 9,954 | 1,995 | $ | 20 | 79 | $ | 1 | $ | 26,741 | $ | 25,992 | $ | (5,338) | $ | (1,109) | $ | 56,261 |
Consolidated Statements of Cash Flows | |||||||||||
(In Millions) | |||||||||||
Year Ended December 31, | 2021 | 2020 | 2019 | ||||||||
Cash Flows from Operating Activities | |||||||||||
Net income | $ | 5,855 | $ | 3,299 | $ | 3,704 | |||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||||||||||
Share-based compensation | 254 | 204 | 183 | ||||||||
Depreciation and amortization | 549 | 414 | 322 | ||||||||
Amortization of acquired intangible assets | 615 | 190 | 27 | ||||||||
Provision (benefit) for deferred income taxes | 53 | (138) | 2 | ||||||||
Premium amortization, net, on available for sale securities | 2,346 | 1,586 | 446 | ||||||||
Other | 372 | 349 | 199 | ||||||||
Net change in: | |||||||||||
Investments segregated and on deposit for regulatory purposes | (3,398) | (10,208) | (977) | ||||||||
Receivables from brokerage clients | (26,168) | (14,609) | (125) | ||||||||
Other assets | (1,152) | 4 | (709) | ||||||||
Payables to brokerage clients | 21,470 | 22,909 | 6,494 | ||||||||
Accrued expenses and other liabilities | 1,322 | 2,852 | (241) | ||||||||
Net cash provided by (used for) operating activities | 2,118 | 6,852 | 9,325 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Purchases of available for sale securities | (171,732) | (202,171) | (31,815) | ||||||||
Proceeds from sales of available for sale securities | 13,306 | 4,801 | 24,495 | ||||||||
Principal payments on available for sale securities | 94,912 | 63,247 | 21,616 | ||||||||
Purchases of held to maturity securities | — | — | (19,441) | ||||||||
Principal payments on held to maturity securities | — | — | 19,606 | ||||||||
Net change in bank loans | (10,845) | (5,675) | (1,730) | ||||||||
Cash acquired in acquisitions, net of cash paid | — | 14,748 | — | ||||||||
Purchases of equipment, office facilities, and property | (916) | (631) | (708) | ||||||||
Purchases of Federal Home Loan Bank stock | — | (26) | (27) | ||||||||
Proceeds from sales of Federal Home Loan Bank stock | — | 32 | 24 | ||||||||
Purchases of Federal Reserve stock | (245) | (191) | — | ||||||||
Other investing activities | (143) | 15 | (56) | ||||||||
Net cash provided by (used for) investing activities | (75,663) | (125,851) | 11,964 | ||||||||
Cash Flows from Financing Activities | |||||||||||
Net change in bank deposits | 85,756 | 137,928 | (11,329) | ||||||||
Proceeds from commercial paper and secured lines of credit | 11,107 | 1,234 | 1,400 | ||||||||
Repayment of commercial paper and secured lines of credit | (6,255) | (1,234) | (1,400) | ||||||||
Issuance of long-term debt | 7,036 | 3,070 | 593 | ||||||||
Repayment of long-term debt | (1,822) | (700) | — | ||||||||
Repurchases of common stock | — | — | (2,220) | ||||||||
Net proceeds from preferred stock offerings | 2,806 | 4,940 | — | ||||||||
Redemption of preferred stock | (600) | — | — | ||||||||
Dividends paid | (1,822) | (1,280) | (1,060) | ||||||||
Proceeds from stock options exercised | 221 | 79 | 118 | ||||||||
Other financing activities | (104) | (55) | (41) | ||||||||
Net cash provided by (used for) financing activities | 96,323 | 143,982 | (13,939) | ||||||||
Increase (Decrease) in Cash and Cash Equivalents, including Amounts Restricted | 22,778 | 24,983 | 7,350 | ||||||||
Cash and Cash Equivalents, including Amounts Restricted at Beginning of Year | 70,560 | 45,577 | 38,227 | ||||||||
Cash and Cash Equivalents, including Amounts Restricted at End of Year | $ | 93,338 | $ | 70,560 | $ | 45,577 |
Year Ended December 31, | 2021 | 2020 | 2019 | ||||||||
Supplemental Cash Flow Information | |||||||||||
Non-cash investing activity: | |||||||||||
Securities transferred from held to maturity to available for sale, at fair value | $ | — | $ | 136,099 | $ | 8,771 | |||||
Additions of equipment, office facilities, and property | $ | 125 | $ | 110 | $ | 45 | |||||
Acquisition of TD Ameritrade | $ | — | $ | 21,758 | $ | — | |||||
Non-cash financing activity: | |||||||||||
Extinguishment of finance lease obligation through an assignment agreement | $ | — | $ | — | $ | 52 | |||||
Other Supplemental Cash Flow Information | |||||||||||
Cash paid during the period for: | |||||||||||
Interest | $ | 501 | $ | 434 | $ | 1,075 | |||||
Income taxes | $ | 2,053 | $ | 803 | $ | 1,199 | |||||
Amounts included in the measurement of lease liabilities | $ | 212 | $ | 163 | $ | 133 | |||||
Leased assets obtained in exchange for new operating lease liabilities | $ | 89 | $ | 160 | $ | 97 | |||||
Leased assets obtained in exchange for new finance lease liabilities | $ | 109 | $ | — | $ | — |
December 31, | 2021 | 2020 | 2019 | ||||||||
Reconciliation of cash, cash equivalents and amounts reported within the balance sheet (1) | |||||||||||
Cash and cash equivalents | $ | 62,975 | $ | 40,348 | $ | 29,345 | |||||
Restricted cash and cash equivalents amounts included in cash and investments segregated and on deposit for regulatory purposes | 30,363 | 30,212 | 16,232 | ||||||||
Total cash and cash equivalents, including amounts restricted shown in the statement of cash flows | $ | 93,338 | $ | 70,560 | $ | 45,577 |
All equipment types and furniture | 3 to 10 years | ||||
Buildings | 40 years | ||||
Building and land improvements | 20 years | ||||
Software | 3 to 10 years (1) | ||||
Leasehold improvements | Lesser of useful life or lease term |
Acquired intangible asset | Acquisition | Method | ||||||||||||
Client relationships | TD Ameritrade, USAA-IMCO | Multi-period excess earnings | ||||||||||||
Trade names | TD Ameritrade | Relief from royalty | ||||||||||||
Royalty-free license | USAA-IMCO | Relief from royalty | ||||||||||||
Brokerage referral agreement | USAA-IMCO | With-and-without | ||||||||||||
Existing technology | TD Ameritrade | Cost |
Fair value of consideration for TD Ameritrade outstanding common stock | $ | 21,664 | ||||||
Fair value of replaced TD Ameritrade equity awards attributable to pre-combination services (1) | 94 | |||||||
Purchase price | $ | 21,758 |
Purchase price | $ | 21,758 | |||
Fair value of assets acquired: | |||||
Cash and cash equivalents | 3,484 | ||||
Cash and investments segregated and on deposit for regulatory purposes | 14,236 | ||||
Receivables from brokerage clients | 28,009 | ||||
Available for sale securities | 1,779 | ||||
Acquired intangible assets | 8,880 | ||||
Equipment, office facilities, and property | 470 | ||||
Other assets | 3,088 | ||||
Total assets acquired | 59,946 | ||||
Fair value of liabilities assumed: | |||||
Payables to brokerage clients | 37,599 | ||||
Accrued expenses and other liabilities | 6,975 | ||||
Long-term debt | 3,829 | ||||
Total liabilities assumed | 48,403 | ||||
Fair value of net identifiable assets acquired | 11,543 | ||||
Goodwill | 10,215 |
Fair Value | Weighted-Average Useful Life (Years) | |||||||||||||
Equipment, office facilities, and property | ||||||||||||||
Real property (1) | $ | 226 | 37 | |||||||||||
Personal property (2) | 162 | 2 | ||||||||||||
Construction in progress | 49 | N/A | ||||||||||||
Land | 33 | N/A | ||||||||||||
Total equipment, office facilities, and property | $ | 470 | ||||||||||||
Acquired intangible assets | ||||||||||||||
Client relationships | $ | 8,700 | 20 | |||||||||||
Existing technology | 165 | 2 | ||||||||||||
Trade names | 15 | 2 | ||||||||||||
Total acquired intangible assets | $ | 8,880 |
Purchase price | $ | 1,581 | |||
Fair value of assets acquired: | |||||
Cash segregated and on deposit for regulatory purposes | 4,392 | ||||
Receivables from brokerage clients | 80 | ||||
Acquired intangible assets | 1,109 | ||||
Total assets acquired | 5,581 | ||||
Fair value of liabilities assumed: | |||||
Payables to brokerage clients | 4,472 | ||||
Total liabilities assumed | 4,472 | ||||
Fair value of net identifiable assets acquired | $ | 1,109 | |||
Goodwill | $ | 472 |
Fair Value | Weighted-Average Useful Life (Years) | ||||||||||
Customer relationships | $ | 962 | 18 | ||||||||
Brokerage referral agreement (1) | 142 | 20 | |||||||||
Royalty-free license | 5 | 7 | |||||||||
Total acquired intangible assets | $ | 1,109 |
Year Ended December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
Total net revenues | $ | 16,617 | $ | 16,897 | ||||||||||
Net income available to common stockholders | 4,617 | 5,121 |
Year Ended December 31, | 2021 | 2020 | 2019 | ||||||||||||||
Net interest revenue | |||||||||||||||||
Cash and cash equivalents | $ | 40 | $ | 120 | $ | 518 | |||||||||||
Cash and investments segregated | 24 | 141 | 345 | ||||||||||||||
Receivables from brokerage clients | 2,455 | 848 | 821 | ||||||||||||||
Available for sale securities | 4,641 | 4,537 | 1,560 | ||||||||||||||
Held to maturity securities | — | — | 3,591 | ||||||||||||||
Bank loans | 620 | 545 | 584 | ||||||||||||||
Securities lending revenue | 720 | 334 | 147 | ||||||||||||||
Other interest revenue | 6 | 6 | 14 | ||||||||||||||
Interest revenue | 8,506 | 6,531 | 7,580 | ||||||||||||||
Bank deposits | (54) | (93) | (700) | ||||||||||||||
Payables to brokerage clients | (9) | (12) | (79) | ||||||||||||||
Short-term borrowings | (9) | — | — | ||||||||||||||
Long-term debt | (384) | (289) | (258) | ||||||||||||||
Securities lending expense | (24) | (33) | (38) | ||||||||||||||
Other interest expense | 4 | 9 | 11 | ||||||||||||||
Interest expense | (476) | (418) | (1,064) | ||||||||||||||
Net interest revenue | 8,030 | 6,113 | 6,516 | ||||||||||||||
Asset management and administration fees | |||||||||||||||||
Mutual funds, ETFs, and CTFs | 1,961 | 1,770 | 1,747 | ||||||||||||||
Advice solutions | 1,993 | 1,443 | 1,198 | ||||||||||||||
Other | 320 | 262 | 266 | ||||||||||||||
Asset management and administration fees | 4,274 | 3,475 | 3,211 | ||||||||||||||
Trading revenue | |||||||||||||||||
Commissions | 2,050 | 739 | 549 | ||||||||||||||
Order flow revenue | 2,053 | 621 | 135 | ||||||||||||||
Principal transactions | 49 | 56 | 68 | ||||||||||||||
Trading revenue | 4,152 | 1,416 | 752 | ||||||||||||||
Bank deposit account fees | 1,315 | 355 | — | ||||||||||||||
Other | 749 | 332 | 242 | ||||||||||||||
Total net revenues | $ | 18,520 | $ | 11,691 | $ | 10,721 |
December 31, | 2021 | 2020 | |||||||||
Receivables | |||||||||||
Margin loans | $ | 87,365 | $ | 60,865 | |||||||
Other brokerage receivables | 3,200 | 3,575 | |||||||||
Receivables from brokerage clients — net (1) | $ | 90,565 | $ | 64,440 | |||||||
Payables | |||||||||||
Interest-bearing payables | $ | 107,551 | $ | 84,642 | |||||||
Non-interest-bearing payables | 18,120 | 19,559 | |||||||||
Payables to brokerage clients | $ | 125,671 | $ | 104,201 |
December 31, 2021 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||
Available for sale securities | |||||||||||||||||||||||
U.S. agency mortgage-backed securities | $ | 335,803 | $ | 3,141 | $ | 4,589 | $ | 334,355 | |||||||||||||||
U.S. Treasury securities | 21,394 | 13 | 125 | 21,282 | |||||||||||||||||||
Asset-backed securities (1) | 17,547 | 79 | 80 | 17,546 | |||||||||||||||||||
Corporate debt securities (2) | 12,310 | 143 | 109 | 12,344 | |||||||||||||||||||
U.S. state and municipal securities | 1,611 | 81 | 5 | 1,687 | |||||||||||||||||||
Non-agency commercial mortgage-backed securities | 1,170 | 20 | — | 1,190 | |||||||||||||||||||
Certificates of deposit | 1,000 | — | 1 | 999 | |||||||||||||||||||
Foreign government agency securities | 425 | — | — | 425 | |||||||||||||||||||
Commercial paper | 200 | — | — | 200 | |||||||||||||||||||
Other | 22 | 4 | — | 26 | |||||||||||||||||||
Total available for sale securities | $ | 391,482 | $ | 3,481 | $ | 4,909 | $ | 390,054 | |||||||||||||||
December 31, 2020 | |||||||||||||||||||||||
Available for sale securities | |||||||||||||||||||||||
U.S. agency mortgage-backed securities | $ | 283,911 | $ | 7,005 | $ | 563 | $ | 290,353 | |||||||||||||||
Asset-backed securities (1) | 18,808 | 174 | 84 | 18,898 | |||||||||||||||||||
Corporate debt securities (2) | 12,408 | 388 | — | 12,796 | |||||||||||||||||||
U.S. Treasury securities | 10,631 | 25 | — | 10,656 | |||||||||||||||||||
U.S. state and municipal securities | 1,544 | 153 | — | 1,697 | |||||||||||||||||||
Foreign government agency securities | 1,411 | 2 | — | 1,413 | |||||||||||||||||||
Non-agency commercial mortgage-backed securities | 1,213 | 52 | — | 1,265 | |||||||||||||||||||
Certificates of deposit | 300 | — | — | 300 | |||||||||||||||||||
Other | 22 | — | — | 22 | |||||||||||||||||||
Total available for sale securities | $ | 330,248 | $ | 7,799 | $ | 647 | $ | 337,400 |
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||
December 31, 2021 | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||||||||||||
Available for sale securities | |||||||||||||||||||||||||||||||||||
U.S. agency mortgage-backed securities | $ | 186,955 | $ | 3,216 | $ | 38,007 | $ | 1,373 | $ | 224,962 | $ | 4,589 | |||||||||||||||||||||||
U.S. Treasury securities | 16,658 | 125 | 21 | — | 16,679 | 125 | |||||||||||||||||||||||||||||
Asset-backed securities | 6,093 | 58 | 2,708 | 22 | 8,801 | 80 | |||||||||||||||||||||||||||||
Corporate debt securities | 4,713 | 99 | 197 | 10 | 4,910 | 109 | |||||||||||||||||||||||||||||
Certificates of deposit | 799 | 1 | — | — | 799 | 1 | |||||||||||||||||||||||||||||
U.S. state and municipal securities | 191 | 4 | 5 | 1 | 196 | 5 | |||||||||||||||||||||||||||||
Total | $ | 215,409 | $ | 3,503 | $ | 40,938 | $ | 1,406 | $ | 256,347 | $ | 4,909 | |||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||||||||
Available for sale securities | |||||||||||||||||||||||||||||||||||
U.S. agency mortgage-backed securities | $ | 61,706 | $ | 551 | $ | 4,774 | $ | 12 | $ | 66,480 | $ | 563 | |||||||||||||||||||||||
Asset-backed securities | 1,398 | 13 | 5,822 | 71 | 7,220 | 84 | |||||||||||||||||||||||||||||
Total | $ | 63,104 | $ | 564 | $ | 10,596 | $ | 83 | $ | 73,700 | $ | 647 | |||||||||||||||||||||||
December 31, 2021 | Within 1 year | After 1 year through 5 years | After 5 years through 10 years | After 10 years | Total | ||||||||||||||||||||||||
U.S. agency mortgage-backed securities | $ | 3,483 | $ | 20,916 | $ | 71,705 | $ | 238,251 | $ | 334,355 | |||||||||||||||||||
U.S. Treasury securities | 4,049 | 14,569 | 2,664 | — | 21,282 | ||||||||||||||||||||||||
Asset-backed securities | — | 4,922 | 3,003 | 9,621 | 17,546 | ||||||||||||||||||||||||
Corporate debt securities | 1,634 | 6,443 | 4,267 | — | 12,344 | ||||||||||||||||||||||||
U.S. state and municipal securities | 23 | 150 | 1,010 | 504 | 1,687 | ||||||||||||||||||||||||
Non-agency commercial mortgage-backed securities | — | — | — | 1,190 | 1,190 | ||||||||||||||||||||||||
Certificates of deposit | 300 | 699 | — | — | 999 | ||||||||||||||||||||||||
Foreign government agency securities | 101 | 324 | — | — | 425 | ||||||||||||||||||||||||
Commercial paper | 200 | — | — | — | 200 | ||||||||||||||||||||||||
Other | — | — | — | 26 | 26 | ||||||||||||||||||||||||
Total fair value | $ | 9,790 | $ | 48,023 | $ | 82,649 | $ | 249,592 | $ | 390,054 | |||||||||||||||||||
Total amortized cost | $ | 9,761 | $ | 47,336 | $ | 82,556 | $ | 251,829 | $ | 391,482 | |||||||||||||||||||
Weighted-average yield (1) | 1.28 | % | 1.89 | % | 1.78 | % | 1.11 | % | 1.35 | % | |||||||||||||||||||
Year Ended December 31, | 2021 | 2020 | 2019 | ||||||||||||||
Proceeds | $ | 13,306 | $ | 4,801 | $ | 24,495 | |||||||||||
Gross realized gains | 40 | 5 | 16 | ||||||||||||||
Gross realized losses | 36 | 1 | 10 |
December 31, 2021 | Current | 30-59 days past due | 60-89 days past due | >90 days past due and other nonaccrual loans (3) | Total past due and other nonaccrual loans | Total loans | Allowance for credit losses | Total bank loans – net | |||||||||||||||||||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||||||||||||||||||||
First Mortgages (1,2) | $ | 21,022 | $ | 41 | $ | 1 | $ | 26 | $ | 68 | $ | 21,090 | $ | 13 | $ | 21,077 | |||||||||||||||||||||||||||||||
HELOCs (1,2) | 637 | 2 | — | 9 | 11 | 648 | 2 | 646 | |||||||||||||||||||||||||||||||||||||||
Total residential real estate | 21,659 | 43 | 1 | 35 | 79 | 21,738 | 15 | 21,723 | |||||||||||||||||||||||||||||||||||||||
Pledged asset lines | 12,698 | 3 | 8 | — | 11 | 12,709 | — | 12,709 | |||||||||||||||||||||||||||||||||||||||
Other | 207 | — | — | — | — | 207 | 3 | 204 | |||||||||||||||||||||||||||||||||||||||
Total bank loans | $ | 34,564 | $ | 46 | $ | 9 | $ | 35 | $ | 90 | $ | 34,654 | $ | 18 | $ | 34,636 | |||||||||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||||||||||||||||||||
First Mortgages (1,2) | $ | 14,804 | $ | 27 | $ | 1 | $ | 72 | $ | 100 | $ | 14,904 | $ | 22 | $ | 14,882 | |||||||||||||||||||||||||||||||
HELOCs (1,2) | 823 | 1 | 1 | 17 | 19 | 842 | 5 | 837 | |||||||||||||||||||||||||||||||||||||||
Total residential real estate | 15,627 | 28 | 2 | 89 | 119 | 15,746 | 27 | 15,719 | |||||||||||||||||||||||||||||||||||||||
Pledged asset lines | 7,901 | 10 | 5 | — | 15 | 7,916 | — | 7,916 | |||||||||||||||||||||||||||||||||||||||
Other | 181 | — | — | — | — | 181 | 3 | 178 | |||||||||||||||||||||||||||||||||||||||
Total bank loans | $ | 23,709 | $ | 38 | $ | 7 | $ | 89 | $ | 134 | $ | 23,843 | $ | 30 | $ | 23,813 |
December 31, 2021 | December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||
First Mortgages | HELOCs | Total residential real estate | Other | Total | First Mortgages | HELOCs | Total residential real estate | Other | Total | First Mortgages | HELOCs | Total residential real estate | Other | Total | |||||||||||||||||||||||||||||||||
Balance at beginning of year | $ | 22 | $ | 5 | $ | 27 | $ | 3 | $ | 30 | $ | 11 | $ | 4 | $ | 15 | $ | 3 | $ | 18 | $ | 14 | $ | 5 | $ | 19 | 2 | $ | 21 | ||||||||||||||||||
Adoption of ASU 2016-13 | — | — | — | — | — | 1 | — | 1 | — | 1 | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Charge-offs | — | — | — | (1) | (1) | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Recoveries | — | 1 | 1 | — | 1 | 1 | — | 1 | — | 1 | 1 | 1 | 2 | — | 2 | ||||||||||||||||||||||||||||||||
Provision for credit losses | (9) | (4) | (13) | 1 | (12) | 9 | 1 | 10 | — | 10 | (4) | (2) | (6) | 1 | (5) | ||||||||||||||||||||||||||||||||
Balance at end of year | $ | 13 | $ | 2 | $ | 15 | $ | 3 | $ | 18 | $ | 22 | $ | 5 | $ | 27 | $ | 3 | $ | 30 | $ | 11 | $ | 4 | $ | 15 | $ | 3 | $ | 18 |
December 31, | 2021 | 2020 | |||||||||
Nonaccrual loans (1) | $ | 35 | $ | 89 | |||||||
Other real estate owned (2) | 1 | 1 | |||||||||
Total nonperforming assets | 36 | 90 | |||||||||
Troubled debt restructurings | — | 1 | |||||||||
Total nonperforming assets and troubled debt restructurings | $ | 36 | $ | 91 |
First Mortgages Amortized Cost Basis by Origination Year | ||||||||||||||||||||||||||||||||
December 31, 2021 | 2021 | 2020 | 2019 | 2018 | 2017 | pre-2017 | Total First Mortgages | Revolving HELOCs amortized cost basis | HELOCs converted to term loans | Total HELOCs | ||||||||||||||||||||||
Origination FICO | ||||||||||||||||||||||||||||||||
<620 | $ | 1 | $ | 1 | $ | — | $ | — | $ | — | $ | 1 | $ | 3 | $ | — | $ | — | $ | — | ||||||||||||
620 – 679 | 34 | 25 | 5 | 1 | 6 | 19 | 90 | — | 2 | 2 | ||||||||||||||||||||||
680 – 739 | 1,306 | 524 | 146 | 41 | 98 | 215 | 2,330 | 61 | 60 | 121 | ||||||||||||||||||||||
≥740 | 11,649 | 4,454 | 1,049 | 165 | 354 | 996 | 18,667 | 308 | 217 | 525 | ||||||||||||||||||||||
Total | $ | 12,990 | $ | 5,004 | $ | 1,200 | $ | 207 | $ | 458 | $ | 1,231 | $ | 21,090 | $ | 369 | $ | 279 | $ | 648 | ||||||||||||
Origination LTV | ||||||||||||||||||||||||||||||||
≤70% | $ | 11,234 | $ | 4,159 | $ | 948 | $ | 160 | $ | 351 | $ | 909 | $ | 17,761 | $ | 305 | $ | 199 | $ | 504 | ||||||||||||
>70% – ≤90% | 1,756 | 845 | 252 | 47 | 107 | 319 | 3,326 | 64 | 78 | 142 | ||||||||||||||||||||||
>90% – ≤100% | — | — | — | — | — | 3 | 3 | — | 2 | 2 | ||||||||||||||||||||||
Total | $ | 12,990 | $ | 5,004 | $ | 1,200 | $ | 207 | $ | 458 | $ | 1,231 | $ | 21,090 | $ | 369 | $ | 279 | $ | 648 | ||||||||||||
Weighted Average Updated FICO | ||||||||||||||||||||||||||||||||
<620 | $ | 5 | $ | 2 | $ | 1 | $ | — | $ | 2 | $ | 12 | $ | 22 | $ | 2 | $ | 6 | $ | 8 | ||||||||||||
620 – 679 | 96 | 69 | 19 | 7 | 8 | 30 | 229 | 6 | 14 | 20 | ||||||||||||||||||||||
680 – 739 | 1,265 | 421 | 115 | 24 | 53 | 149 | 2,027 | 51 | 39 | 90 | ||||||||||||||||||||||
≥740 | 11,624 | 4,512 | 1,065 | 176 | 395 | 1,040 | 18,812 | 310 | 220 | 530 | ||||||||||||||||||||||
Total | $ | 12,990 | $ | 5,004 | $ | 1,200 | $ | 207 | $ | 458 | $ | 1,231 | $ | 21,090 | $ | 369 | $ | 279 | $ | 648 | ||||||||||||
Estimated Current LTV (1) | ||||||||||||||||||||||||||||||||
≤70% | $ | 11,707 | $ | 4,961 | $ | 1,196 | $ | 206 | $ | 455 | $ | 1,229 | $ | 19,754 | $ | 368 | $ | 277 | $ | 645 | ||||||||||||
>70% – ≤90% | 1,283 | 43 | 4 | 1 | 3 | 2 | 1,336 | 1 | 2 | 3 | ||||||||||||||||||||||
>90% – ≤100% | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
>100% | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total | $ | 12,990 | $ | 5,004 | $ | 1,200 | $ | 207 | $ | 458 | $ | 1,231 | $ | 21,090 | $ | 369 | $ | 279 | $ | 648 | ||||||||||||
Percent of Loans on Nonaccrual Status | 0.03 | % | 0.10 | % | 0.03 | % | 0.03 | % | 0.03 | % | 1.40 | % | 0.12 | % | 0.64 | % | 2.33 | % | 1.39 | % |
First Mortgages Amortized Cost Basis by Origination Year | |||||||||||||||||||||||||||||
December 31, 2020 | 2020 | 2019 | 2018 | 2017 | pre-2017 | Total First Mortgages | Revolving HELOCs amortized cost basis | HELOCs converted to term loans | Total HELOCs | ||||||||||||||||||||
Origination FICO | |||||||||||||||||||||||||||||
<620 | $ | 1 | $ | — | $ | — | $ | — | $ | 2 | $ | 3 | $ | — | $ | — | $ | — | |||||||||||
620 – 679 | 29 | 13 | 3 | 8 | 31 | 84 | 1 | 3 | 4 | ||||||||||||||||||||
680 – 739 | 794 | 355 | 105 | 181 | 419 | 1,854 | 82 | 80 | 162 | ||||||||||||||||||||
≥740 | 7,150 | 2,452 | 449 | 858 | 2,054 | 12,963 | 380 | 296 | 676 | ||||||||||||||||||||
Total | $ | 7,974 | $ | 2,820 | $ | 557 | $ | 1,047 | $ | 2,506 | $ | 14,904 | $ | 463 | $ | 379 | $ | 842 | |||||||||||
Origination LTV | |||||||||||||||||||||||||||||
≤70% | $ | 6,653 | $ | 2,211 | $ | 396 | $ | 793 | $ | 1,935 | $ | 11,988 | $ | 351 | $ | 269 | $ | 620 | |||||||||||
>70% – ≤90% | 1,321 | 609 | 161 | 254 | 568 | 2,913 | 112 | 107 | 219 | ||||||||||||||||||||
>90% – ≤100% | — | — | — | — | 3 | 3 | — | 3 | 3 | ||||||||||||||||||||
Total | $ | 7,974 | $ | 2,820 | $ | 557 | $ | 1,047 | $ | 2,506 | $ | 14,904 | $ | 463 | $ | 379 | $ | 842 | |||||||||||
Weighted Average Updated FICO | |||||||||||||||||||||||||||||
<620 | $ | 5 | $ | 2 | $ | 1 | $ | 4 | $ | 19 | $ | 31 | $ | 3 | $ | 9 | $ | 12 | |||||||||||
620 – 679 | 67 | 34 | 16 | 21 | 60 | 198 | 12 | 20 | 32 | ||||||||||||||||||||
680 – 739 | 784 | 252 | 66 | 121 | 281 | 1,504 | 58 | 55 | 113 | ||||||||||||||||||||
≥740 | 7,118 | 2,532 | 474 | 901 | 2,146 | 13,171 | 390 | 295 | 685 | ||||||||||||||||||||
Total | $ | 7,974 | $ | 2,820 | $ | 557 | $ | 1,047 | $ | 2,506 | $ | 14,904 | $ | 463 | $ | 379 | $ | 842 | |||||||||||
Estimated Current LTV (1) | |||||||||||||||||||||||||||||
≤70% | $ | 6,999 | $ | 2,582 | $ | 533 | $ | 1,034 | $ | 2,490 | $ | 13,638 | $ | 452 | $ | 368 | $ | 820 | |||||||||||
>70% – ≤90% | 975 | 238 | 24 | 13 | 16 | 1,266 | 11 | 9 | 20 | ||||||||||||||||||||
>90% – ≤100% | — | — | — | — | — | — | — | 1 | 1 | ||||||||||||||||||||
>100% | — | — | — | — | — | — | — | 1 | 1 | ||||||||||||||||||||
Total | $ | 7,974 | $ | 2,820 | $ | 557 | $ | 1,047 | $ | 2,506 | $ | 14,904 | $ | 463 | $ | 379 | $ | 842 | |||||||||||
Percent of Loans on Nonaccrual Status | 0.09 | % | 0.38 | % | 1.02 | % | 0.87 | % | 1.57 | % | 0.48 | % | 1.37 | % | 2.80 | % | 2.02 | % |
December 31, | 2021 | 2020 | |||||||||
HELOCs converted to amortizing loans | $ | 19 | $ | 26 |
December 31, 2021 | Balance | ||||
Converted to an amortizing loan by period end | $ | 279 | |||
Within 1 year | 16 | ||||
> 1 year – 3 years | 72 | ||||
> 3 years – 5 years | 65 | ||||
> 5 years | 216 | ||||
Total | $ | 648 |
December 31, | 2021 | 2020 | |||||||||
Software | $ | 2,524 | $ | 2,314 | |||||||
Buildings | 1,640 | 1,444 | |||||||||
Information technology and telecommunications equipment | 679 | 509 | |||||||||
Leasehold improvements | 462 | 455 | |||||||||
Construction in progress | 429 | 325 | |||||||||
Land | 208 | 208 | |||||||||
Other | 388 | 295 | |||||||||
Total equipment, office facilities, and property | 6,330 | 5,550 | |||||||||
Accumulated depreciation and amortization | (2,888) | (2,667) | |||||||||
Total equipment, office facilities, and property — net | $ | 3,442 | $ | 2,883 |
December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||
Gross Carrying Value | Accumulated Amortization | Net Carrying Value | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | ||||||||||||||||||||||||||||||
Client relationships | $ | 10,089 | $ | (908) | $ | 9,181 | $ | 10,089 | $ | (386) | $ | 9,703 | |||||||||||||||||||||||
Technology | 305 | (197) | 108 | 305 | (112) | 193 | |||||||||||||||||||||||||||||
Trade names | 116 | (26) | 90 | 113 | (18) | 95 | |||||||||||||||||||||||||||||
Total acquired intangible assets | $ | 10,510 | $ | (1,131) | $ | 9,379 | $ | 10,507 | $ | (516) | $ | 9,991 |
2022 | $ | 596 | |||
2023 | 534 | ||||
2024 | 518 | ||||
2025 | 512 | ||||
2026 | 508 | ||||
Thereafter | 6,630 | ||||
Total | $ | 9,298 |
Investor Services | Advisor Services | Total | |||||||||||||||
Balance at December 31, 2019 | $ | 1,096 | $ | 131 | $ | 1,227 | |||||||||||
Goodwill acquired in TD Ameritrade acquisition | 6,380 | 3,835 | 10,215 | ||||||||||||||
Goodwill acquired in other acquisitions | 494 | 16 | 510 | ||||||||||||||
December 31, 2020 | 7,970 | 3,982 | 11,952 | ||||||||||||||
Goodwill acquired and other changes during the period | — | — | — | ||||||||||||||
Balance at December 31, 2021 | $ | 7,970 | $ | 3,982 | $ | 11,952 |
December 31, | 2021 | 2020 | |||||||||
Other receivables from brokers, dealers, and clearing organizations | $ | 2,475 | $ | 1,748 | |||||||
Receivables — interest, dividends, and other | 1,615 | 1,180 | |||||||||
Other securities owned at fair value (1) | 1,584 | 687 | |||||||||
Other investments (2) | 1,526 | 1,019 | |||||||||
Operating lease ROU assets | 842 | 937 | |||||||||
Customer contract receivables (3) | 637 | 579 | |||||||||
Securities borrowed | 582 | 873 | |||||||||
Capitalized contract costs | 344 | 303 | |||||||||
Other | 713 | 457 | |||||||||
Total other assets | $ | 10,318 | $ | 7,783 |
December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||
Aggregate assets | Aggregate liabilities | Maximum exposure to loss | Aggregate assets | Aggregate liabilities | Maximum exposure to loss | ||||||||||||||||||||||||||||||
LIHTC investments (1) | $ | 915 | $ | 530 | $ | 915 | $ | 649 | $ | 344 | $ | 649 | |||||||||||||||||||||||
Other CRA investments (2) | 161 | — | 211 | 118 | — | 152 | |||||||||||||||||||||||||||||
Total | $ | 1,076 | $ | 530 | $ | 1,126 | $ | 767 | $ | 344 | $ | 801 |
December 31, | 2021 | 2020 | |||||||||
Interest-bearing deposits: | |||||||||||
Deposits swept from brokerage accounts | $ | 412,287 | $ | 332,513 | |||||||
Checking | 22,786 | 17,785 | |||||||||
Savings and other | 7,234 | 6,739 | |||||||||
Total interest-bearing deposits | 442,307 | 357,037 | |||||||||
Non-interest-bearing deposits | 1,471 | 985 | |||||||||
Total bank deposits | $ | 443,778 | $ | 358,022 |
Date of | Principal Amount Outstanding | ||||||||||
Issuance | 2021 | 2020 | |||||||||
CSC Fixed-rate Senior Notes: | |||||||||||
3.250% due May 21, 2021 | 05/22/18 | $ | — | $ | 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 | ||||||||
0.750% due March 18, 2024 | 03/18/21 | 1,500 | — | ||||||||
3.750% due April 1, 2024 (1) | 09/24/21 | 350 | — | ||||||||
3.000% due March 10, 2025 | 03/10/15 | 375 | 375 | ||||||||
4.200% due March 24, 2025 | 03/24/20 | 600 | 600 | ||||||||
3.625% due April 1, 2025 (1) | 09/24/21 | 418 | — | ||||||||
3.850% due May 21, 2025 | 05/22/18 | 750 | 750 | ||||||||
3.450% due February 13, 2026 | 11/13/15 | 350 | 350 | ||||||||
0.900% due March 11, 2026 | 12/11/20 | 1,250 | 1,250 | ||||||||
1.150% due May 13, 2026 | 05/13/21 | 1,000 | — | ||||||||
3.200% due March 2, 2027 | 03/02/17 | 650 | 650 | ||||||||
3.300% due April 1, 2027 (1) | 09/24/21 | 744 | — | ||||||||
3.200% due January 25, 2028 | 12/07/17 | 700 | 700 | ||||||||
2.000% due March 20, 2028 | 03/18/21 | 1,250 | — | ||||||||
4.000% due February 1, 2029 | 10/31/18 | 600 | 600 | ||||||||
3.250% due May 22, 2029 | 05/22/19 | 600 | 600 | ||||||||
2.750% due October 1, 2029 (1) | 09/24/21 | 475 | — | ||||||||
4.625% due March 22, 2030 | 03/24/20 | 500 | 500 | ||||||||
1.650% due March 11, 2031 | 12/11/20 | 750 | 750 | ||||||||
2.300% due May 13, 2031 | 05/13/21 | 750 | — | ||||||||
1.950% due December 1, 2031 | 08/26/21 | 850 | — | ||||||||
CSC Floating-rate Senior Notes: | |||||||||||
Three-month LIBOR + 0.32% due May 21, 2021 | 05/22/18 | — | 600 | ||||||||
SOFR + 0.500% due March 18, 2024 | 03/18/21 | 1,250 | — | ||||||||
SOFR + 0.520% due May 13, 2026 | 05/13/21 | 500 | — | ||||||||
Total CSC Senior Notes | 17,768 | 9,881 | |||||||||
TDA Holding Fixed-rate Senior Notes: | |||||||||||
2.950% due April 1, 2022 | 03/09/15 | 750 | 750 | ||||||||
3.750% due April 1, 2024 (1) | 11/01/18 | 50 | 400 | ||||||||
3.625% due April 1, 2025 (1) | 10/22/14 | 82 | 500 | ||||||||
3.300% due April 1, 2027 (1) | 04/27/17 | 56 | 800 | ||||||||
2.750% due October 1, 2029 (1) | 08/16/19 | 25 | 500 | ||||||||
TDA Holding Floating-rate Senior Notes: | |||||||||||
Three-month LIBOR + 0.43% due November 1, 2021 | 11/01/18 | — | 600 | ||||||||
Total TDA Holding Senior Notes | 963 | 3,550 | |||||||||
Finance lease liabilities | 94 | 6 | |||||||||
Unamortized premium — net | 180 | 249 | |||||||||
Debt issuance costs | (91) | (54) | |||||||||
Total long-term debt | $ | 18,914 | $ | 13,632 |
Maturities | |||||
2022 | $ | 1,036 | |||
2023 | 829 | ||||
2024 | 3,673 | ||||
2025 | 2,237 | ||||
2026 | 3,100 | ||||
Thereafter | 7,950 | ||||
Total maturities | 18,825 | ||||
Unamortized premium — net | 180 | ||||
Debt issuance costs | (91) | ||||
Total long-term debt | $ | 18,914 |
December 31, | 2021 | 2020 | ||||||||||||
Lease assets: | Balance Sheet Classification | |||||||||||||
Operating lease ROU assets | $ | 842 | $ | 937 | ||||||||||
Lease liabilities: | ||||||||||||||
Operating lease liabilities | $ | 932 | $ | 1,033 |
Year Ended December 31, | 2021 | 2020 | 2019 | ||||||||||||||
Lease Cost | |||||||||||||||||
Operating lease cost (1) | $ | 220 | $ | 166 | $ | 137 | |||||||||||
Variable lease cost (2) | 48 | 34 | 34 |
December 31, | 2021 | 2020 | |||||||||
Lease Term and Discount Rate | |||||||||||
Weighted-average remaining lease term (years) | 6.63 | 7.02 | |||||||||
Weighted-average discount rate | 2.48 | % | 2.86 | % |
Maturity of Lease Liabilities | Operating Leases (1) | ||||
2022 | $ | 191 | |||
2023 | 185 | ||||
2024 | 149 | ||||
2025 | 128 | ||||
2026 | 103 | ||||
Thereafter | 257 | ||||
Total lease payments | 1,013 | ||||
Less: Interest | 81 | ||||
Present value of lease liabilities | $ | 932 |
December 31, | 2021 | 2020 | ||||||
Commitments to extend credit related to unused HELOCs, PALs, and other lines of credit | $ | 6,193 | $ | 8,141 | ||||
Commitments to purchase First Mortgage loans | 1,824 | 1,917 | ||||||
Total | $ | 8,017 | $ | 10,058 |
Investor Services Employee Compensation and Benefits | Advisor Services Employee Compensation and Benefits | Total | |||||||||
Balance at December 31, 2019 | $ | — | $ | — | $ | — | |||||
Exit and other related liabilities assumed in business acquisition | 18 | 5 | 23 | ||||||||
Amounts recognized in expense (1) | 138 | 38 | 176 | ||||||||
Costs paid or otherwise settled | (70) | (19) | (89) | ||||||||
Balance at December 31, 2020 (2) | $ | 86 | $ | 24 | $ | 110 | |||||
Amounts recognized in expense (1) | 66 | 17 | 83 | ||||||||
Costs paid or otherwise settled | (124) | (34) | (158) | ||||||||
Balance at December 31, 2021 (2) | $ | 28 | $ | 7 | $ | 35 |
Investor Services | Advisor Services | ||||||||||||||||||||||
Employee Compensation and Benefits | Facility Exit Costs (1) | Investor Services Total | Employee Compensation and Benefits | Facility Exit Costs (1) | Advisor Services Total | Total | |||||||||||||||||
Compensation and benefits | $ | 66 | $ | — | $ | 66 | $ | 17 | $ | — | $ | 17 | $ | 83 | |||||||||
Occupancy and equipment | — | 18 | 18 | — | 4 | 4 | 22 | ||||||||||||||||
Professional services | — | 1 | 1 | — | — | — | 1 | ||||||||||||||||
Other | — | 2 | 2 | — | — | — | 2 | ||||||||||||||||
Total | $ | 66 | $ | 21 | $ | 87 | $ | 17 | $ | 4 | $ | 21 | $ | 108 |
Investor Services | Advisor Services | ||||||||||||||||||||||
Employee Compensation and Benefits | Facility Exit Costs (1) | Investor Services Total | Employee Compensation and Benefits | Facility Exit Costs (1) | Advisor Services Total | Total | |||||||||||||||||
Compensation and benefits | $ | 138 | $ | — | $ | 138 | $ | 38 | $ | — | $ | 38 | $ | 176 | |||||||||
Occupancy and equipment | — | 6 | 6 | — | 1 | 1 | 7 | ||||||||||||||||
Depreciation and amortization | — | 2 | 2 | — | 1 | 1 | 3 | ||||||||||||||||
Total | $ | 138 | $ | 8 | $ | 146 | $ | 38 | $ | 2 | $ | 40 | $ | 186 |
Investor Services | Advisor Services | ||||||||||||||||||||||
Employee Compensation and Benefits | Facility Exit Costs (1) | Investor Services Total | Employee Compensation and Benefits | Facility Exit Costs (1) | Advisor Services Total | Total | |||||||||||||||||
Compensation and benefits | $ | 204 | $ | — | $ | 204 | $ | 55 | $ | — | $ | 55 | $ | 259 | |||||||||
Occupancy and equipment | — | 24 | 24 | — | 5 | 5 | 29 | ||||||||||||||||
Depreciation and amortization | — | 2 | 2 | — | 1 | 1 | 3 | ||||||||||||||||
Professional services | — | 1 | 1 | — | — | — | 1 | ||||||||||||||||
Other | — | 2 | 2 | — | — | — | 2 | ||||||||||||||||
Total | $ | 204 | $ | 29 | $ | 233 | $ | 55 | $ | 6 | $ | 61 | $ | 294 |
Gross Assets/ Liabilities | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amounts Presented in the Consolidated Balance Sheets | Gross Amounts Not Offset in the Consolidated Balance Sheets | Net Amount | |||||||||||||||||||||||||||||||||||||
Counterparty Offsetting | Collateral | ||||||||||||||||||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||
Resale agreements (1) | $ | 13,096 | $ | — | $ | 13,096 | $ | — | $ | (13,096) | (2) | $ | — | ||||||||||||||||||||||||||||
Securities borrowed (3) | 582 | — | 582 | (383) | (195) | 4 | |||||||||||||||||||||||||||||||||||
Total | $ | 13,678 | $ | — | $ | 13,678 | $ | (383) | $ | (13,291) | $ | 4 | |||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||||
Securities loaned (4,5) | $ | 7,158 | $ | — | $ | 7,158 | $ | (383) | $ | (6,015) | $ | 760 | |||||||||||||||||||||||||||||
Secured short-term borrowings (6) | 1,850 | — | 1,850 | — | (1,850) | — | |||||||||||||||||||||||||||||||||||
Total | $ | 9,008 | $ | — | $ | 9,008 | $ | (383) | $ | (7,865) | $ | 760 | |||||||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||
Resale agreements (1) | $ | 14,904 | $ | — | $ | 14,904 | $ | — | $ | (14,904) | (2) | $ | — | ||||||||||||||||||||||||||||
Securities borrowed (3) | 873 | — | 873 | (673) | (195) | 5 | |||||||||||||||||||||||||||||||||||
Total | $ | 15,777 | $ | — | $ | 15,777 | $ | (673) | $ | (15,099) | $ | 5 | |||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||||
Securities loaned (4,5) | $ | 7,549 | $ | — | $ | 7,549 | $ | (673) | $ | (6,049) | $ | 827 | |||||||||||||||||||||||||||||
Total | $ | 7,549 | $ | — | $ | 7,549 | $ | (673) | $ | (6,049) | $ | 827 |
December 31, | 2021 | 2020 | ||||||
Fair value of client securities available to be pledged | $ | 120,306 | $ | 84,006 | ||||
Fair value of securities pledged for: | ||||||||
Fulfillment of requirements with the Options Clearing Corporation (1) | $ | 16,829 | $ | 10,222 | ||||
Fulfillment of client short sales | 5,934 | 6,274 | ||||||
Securities lending to other broker-dealers | 6,269 | 6,522 | ||||||
Collateral for short-term borrowings | 2,390 | — | ||||||
Total collateral pledged to third parties | $ | 31,422 | $ | 23,018 |
December 31, 2021 | Level 1 | Level 2 | Level 3 | Balance at Fair Value | ||||||||||
Cash equivalents: | ||||||||||||||
Money market funds | $ | 11,719 | $ | — | $ | — | $ | 11,719 | ||||||
Total cash equivalents | 11,719 | — | — | 11,719 | ||||||||||
Investments segregated and on deposit for regulatory purposes: | ||||||||||||||
Certificates of deposit | — | 350 | — | 350 | ||||||||||
U.S. Government securities | — | 36,349 | — | 36,349 | ||||||||||
Total investments segregated and on deposit for regulatory purposes | — | 36,699 | — | 36,699 | ||||||||||
Available for sale securities: | ||||||||||||||
U.S. agency mortgage-backed securities | — | 334,355 | — | 334,355 | ||||||||||
U.S. Treasury securities | — | 21,282 | — | 21,282 | ||||||||||
Asset-backed securities | — | 17,546 | — | 17,546 | ||||||||||
Corporate debt securities | — | 12,344 | — | 12,344 | ||||||||||
U.S. state and municipal securities | — | 1,687 | — | 1,687 | ||||||||||
Non-agency commercial mortgage-backed securities | — | 1,190 | — | 1,190 | ||||||||||
Certificates of deposit | — | 999 | — | 999 | ||||||||||
Foreign government agency securities | — | 425 | — | 425 | ||||||||||
Commercial paper | — | 200 | — | 200 | ||||||||||
Other | — | 26 | — | 26 | ||||||||||
Total available for sale securities | — | 390,054 | — | 390,054 | ||||||||||
Other assets: | ||||||||||||||
Equity, corporate debt, and other securities | 854 | 59 | — | 913 | ||||||||||
Mutual funds and ETFs | 636 | — | — | 636 | ||||||||||
State and municipal debt obligations | — | 32 | — | 32 | ||||||||||
U.S. Government securities | — | 3 | — | 3 | ||||||||||
Total other assets | 1,490 | 94 | — | 1,584 | ||||||||||
Total assets | $ | 13,209 | $ | 426,847 | $ | — | $ | 440,056 | ||||||
Accrued expenses and other liabilities | $ | 1,354 | $ | 45 | $ | — | $ | 1,399 | ||||||
Total liabilities | $ | 1,354 | $ | 45 | $ | — | $ | 1,399 |
December 31, 2020 | Level 1 | Level 2 | Level 3 | Balance at Fair Value | ||||||||||
Cash equivalents: | ||||||||||||||
Money market funds | $ | 11,159 | $ | — | $ | — | $ | 11,159 | ||||||
Total cash equivalents | 11,159 | — | — | 11,159 | ||||||||||
Investments segregated and on deposit for regulatory purposes: | ||||||||||||||
Certificates of deposit | — | 550 | — | 550 | ||||||||||
U.S. Government securities | — | 30,698 | — | 30,698 | ||||||||||
Total investments segregated and on deposit for regulatory purposes | — | 31,248 | — | 31,248 | ||||||||||
Available for sale securities: | ||||||||||||||
U.S. agency mortgage-backed securities | — | 290,353 | — | 290,353 | ||||||||||
Asset-backed securities | — | 18,898 | — | 18,898 | ||||||||||
Corporate debt securities | — | 12,796 | — | 12,796 | ||||||||||
U.S. Treasury securities | — | 10,656 | — | 10,656 | ||||||||||
U.S. state and municipal securities | — | 1,697 | — | 1,697 | ||||||||||
Foreign government agency securities | — | 1,413 | — | 1,413 | ||||||||||
Non-agency commercial mortgage-backed securities | — | 1,265 | — | 1,265 | ||||||||||
Certificates of deposit | — | 300 | — | 300 | ||||||||||
Other | — | 22 | — | 22 | ||||||||||
Total available for sale securities | — | 337,400 | — | 337,400 | ||||||||||
Other assets: | ||||||||||||||
Mutual funds and ETFs | 361 | — | — | 361 | ||||||||||
U.S. Government securities | — | 253 | — | 253 | ||||||||||
State and municipal debt obligations | — | 37 | — | 37 | ||||||||||
Equity, corporate debt, and other securities | 7 | 29 | — | 36 | ||||||||||
Total other assets | 368 | 319 | — | 687 | ||||||||||
Total | $ | 11,527 | $ | 368,967 | $ | — | $ | 380,494 |
December 31, 2021 | Carrying Amount | Level 1 | Level 2 | Level 3 | Balance at Fair Value | ||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | 51,256 | $ | 51,256 | $ | — | $ | — | $ | 51,256 | |||||||
Cash and investments segregated and on deposit for regulatory purposes | 17,246 | 4,151 | 13,095 | — | 17,246 | ||||||||||||
Receivables from brokerage clients — net | 90,560 | — | 90,560 | — | 90,560 | ||||||||||||
Bank loans — net: | |||||||||||||||||
First Mortgages | 21,077 | — | 21,027 | — | 21,027 | ||||||||||||
HELOCs | 646 | — | 668 | — | 668 | ||||||||||||
Pledged asset lines | 12,709 | — | 12,709 | — | 12,709 | ||||||||||||
Other | 204 | — | 204 | — | 204 | ||||||||||||
Total bank loans — net | 34,636 | — | 34,608 | — | 34,608 | ||||||||||||
Other assets | 3,561 | — | 3,561 | — | 3,561 | ||||||||||||
Liabilities | |||||||||||||||||
Bank deposits | $ | 443,778 | $ | — | $ | 443,778 | $ | — | $ | 443,778 | |||||||
Payables to brokerage clients | 125,671 | — | 125,671 | — | 125,671 | ||||||||||||
Accrued expenses and other liabilities | 8,327 | — | 8,327 | — | 8,327 | ||||||||||||
Short-term borrowings | 4,855 | — | 4,855 | — | 4,855 | ||||||||||||
Long-term debt | 18,820 | — | 19,383 | — | 19,383 | ||||||||||||
December 31, 2020 | Carrying Amount | Level 1 | Level 2 | Level 3 | Balance at Fair Value | ||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | 29,189 | $ | 29,189 | $ | — | $ | — | $ | 29,189 | |||||||
Cash and investments segregated and on deposit for regulatory purposes | 19,143 | 4,212 | 14,931 | — | 19,143 | ||||||||||||
Receivables from brokerage clients — net | 64,436 | — | 64,436 | — | 64,436 | ||||||||||||
Bank loans — net: | |||||||||||||||||
First Mortgages | 14,882 | — | 15,305 | — | 15,305 | ||||||||||||
HELOCs | 837 | — | 838 | — | 838 | ||||||||||||
Pledged asset lines | 7,916 | — | 7,916 | — | 7,916 | ||||||||||||
Other | 178 | — | 178 | — | 178 | ||||||||||||
Total bank loans — net | 23,813 | — | 24,237 | — | 24,237 | ||||||||||||
Other assets | 2,883 | — | 2,883 | — | 2,883 | ||||||||||||
Liabilities | |||||||||||||||||
Bank deposits | $ | 358,022 | $ | — | $ | 358,022 | $ | — | $ | 358,022 | |||||||
Payables to brokerage clients | 104,201 | — | 104,201 | — | 104,201 | ||||||||||||
Accrued expenses and other liabilities | 8,263 | — | 8,263 | — | 8,263 | ||||||||||||
Long-term debt | 13,626 | — | 14,829 | — | 14,829 | ||||||||||||
Year Ended December 31, | 2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Total Declared (in millions) | Per Share Amount | Total Declared (in millions) | Per Share Amount | Total Declared (in millions) | Per Share Amount | ||||||||||||||||||||||||||||||
Series A | $ | 28.0 | $ | 70.00 | $ | 28.0 | $ | 70.00 | $ | 28.0 | $ | 70.00 | |||||||||||||||||||||||
Series C (1) | 18.0 | 30.00 | 36.0 | 60.00 | 36.0 | 60.00 | |||||||||||||||||||||||||||||
Series D | 44.6 | 59.52 | 44.6 | 59.52 | 44.6 | 59.52 | |||||||||||||||||||||||||||||
Series E | 27.8 | 4,625.00 | 27.8 | 4,625.00 | 27.8 | 4,625.00 | |||||||||||||||||||||||||||||
Series F | 25.0 | 5,000.00 | 25.0 | 5,000.00 | 25.0 | 5,000.00 | |||||||||||||||||||||||||||||
Series G (2) | 134.4 | 5,375.00 | 78.8 | 3,150.35 | N/A | N/A | |||||||||||||||||||||||||||||
Series H (3) | 97.2 | 3,888.89 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Series I (4) | 63.2 | 2,811.11 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Series J (5) | 17.9 | 29.80 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Total | $ | 456.1 | $ | 240.2 | $ | 161.4 |
Total AOCI | |||||
Balance at December 31, 2018 | $ | (252) | |||
Available for sale securities: | |||||
Net unrealized gain (loss) excluding transfers to available for sale from held to maturity, net of tax expense (benefit) of $96 | 309 | ||||
Net unrealized gain on securities transferred to available for sale from held to maturity, net of tax expense (benefit) of $6 (1) | 19 | ||||
Other reclassifications included in other revenue, net of tax expense (benefit) of $(1) | (5) | ||||
Held to maturity securities: | |||||
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale, net of tax expense (benefit) of $9 | 27 | ||||
Other, net of tax expense (benefit) of $(4) | (10) | ||||
Balance at December 31, 2019 | $ | 88 | |||
Available for sale securities: | |||||
Net unrealized gain (loss) excluding transfers to available for sale from held to maturity, net of tax expense (benefit) of $1,322 | 4,246 | ||||
Net unrealized gain on securities transferred to available for sale from held to maturity, net of tax expense (benefit) of $336 (2) | 1,057 | ||||
Other reclassifications included in other revenue, net of tax expense (benefit) of $(1) | (3) | ||||
Other, net of tax expense (benefit) of $2 | 6 | ||||
Balance at December 31, 2020 | $ | 5,394 | |||
Available for sale securities: | |||||
Net unrealized gain (loss), net of tax expense (benefit) of $(2,029) | (6,492) | ||||
Other reclassifications included in other revenue, net of tax expense (benefit) of $(1) | (3) | ||||
Other, net of tax expense (benefit) of $(3) | (8) | ||||
Balance at December 31, 2021 | $ | (1,109) |
Year Ended December 31, | 2021 | 2020 | 2019 | ||||||||||||||
Stock option expense | $ | 36 | $ | 36 | $ | 51 | |||||||||||
Restricted stock unit expense | 200 | 156 | 120 | ||||||||||||||
Employee stock purchase plan expense | 18 | 12 | 12 | ||||||||||||||
Total share-based compensation expense | $ | 254 | $ | 204 | $ | 183 | |||||||||||
Income tax benefit on share-based compensation expense (1) | $ | (60) | $ | (49) | $ | (44) |
Number of Options (In millions) | Weighted- Average Exercise Price per Share | Weighted- Average Remaining Contractual Life (in years) | Aggregate Intrinsic Value | ||||||||||||||||||||
Outstanding at December 31, 2020 | 24 | $ | 33.67 | 5.36 | $ | 452 | |||||||||||||||||
Granted | 2 | 64.49 | |||||||||||||||||||||
Exercised | (9) | 27.80 | |||||||||||||||||||||
Forfeited (1) | — | 45.99 | |||||||||||||||||||||
Expired (1) | — | 35.00 | |||||||||||||||||||||
Outstanding at December 31, 2021 | 17 | $ | 39.11 | 5.38 | $ | 782 | |||||||||||||||||
Vested and expected to vest at December 31, 2021 | 17 | $ | 39.09 | 5.38 | $ | 782 | |||||||||||||||||
Vested and exercisable at December 31, 2021 | 13 | $ | 34.93 | 4.54 | $ | 650 |
Year Ended December 31, | 2021 | 2020 | 2019 | ||||||||||||||
Weighted-average fair value of options granted per share | $ | 19.51 | $ | 11.56 | $ | 11.97 | |||||||||||
Cash received from options exercised | 221 | 79 | 118 | ||||||||||||||
Tax benefit realized on options exercised | 61 | 11 | 17 | ||||||||||||||
Aggregate intrinsic value of options exercised | 322 | 71 | 108 |
Number of Units (In millions) | Weighted- Average Grant Date Fair Value per Unit | ||||||||||
Outstanding at December 31, 2020 | 10 | $ | 40.85 | ||||||||
Granted | 4 | 64.18 | |||||||||
Vested | (4) | 41.25 | |||||||||
Forfeited | (1) | 45.63 | |||||||||
Outstanding at December 31, 2021 | 9 | $ | 49.69 |
December 31, | 2021 | 2020 | |||||||||
Projected benefit obligation at beginning of year | $ | 92 | $ | 83 | |||||||
Benefit cost (1) | 16 | 17 | |||||||||
Actuarial loss/(gain) (2) | 11 | (8) | |||||||||
Projected benefit obligation at end of year (3) | $ | 119 | $ | 92 |
Year Ended December 31, | 2021 | 2020 | 2019 | ||||||||||||||
Current: | |||||||||||||||||
Federal | $ | 1,507 | $ | 967 | $ | 958 | |||||||||||
State | 298 | 172 | 184 | ||||||||||||||
Total current | 1,805 | 1,139 | 1,142 | ||||||||||||||
Deferred: | |||||||||||||||||
Federal | 38 | (113) | 3 | ||||||||||||||
State | 15 | (25) | (1) | ||||||||||||||
Total deferred | 53 | (138) | 2 | ||||||||||||||
Taxes on income | $ | 1,858 | $ | 1,001 | $ | 1,144 |
December 31, | 2021 | 2020 | ||||||
Deferred tax assets: | ||||||||
Net unrealized loss on available for sale securities | $ | 347 | $ | — | ||||
Employee compensation, severance, and benefits | 237 | 271 | ||||||
Operating lease liabilities | 225 | 249 | ||||||
Reserves and allowances | 74 | 70 | ||||||
Debt fair value remeasurement | 47 | 67 | ||||||
State and local taxes | 40 | 37 | ||||||
Net operating loss carryforwards | 8 | 8 | ||||||
Total deferred tax assets | 978 | 702 | ||||||
Valuation allowance | (8) | (8) | ||||||
Deferred tax assets — net of valuation allowance | 970 | 694 | ||||||
Deferred tax liabilities: | ||||||||
Amortization of acquired intangible assets | (1,888) | (1,954) | ||||||
Net unrealized gain on available for sale securities | — | (1,686) | ||||||
Operating lease ROU assets | (210) | (233) | ||||||
Capitalized internal-use software development costs | (142) | (101) | ||||||
Other | (212) | (182) | ||||||
Total deferred tax liabilities | (2,452) | (4,156) | ||||||
Deferred tax asset/(liability) — net (1) | $ | (1,482) | $ | (3,462) |
Year Ended December 31, | 2021 | 2020 | 2019 | ||||||||||||||
Federal statutory income tax rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||||||||
State income taxes, net of federal tax benefit | 3.4 | 3.2 | 3.2 | ||||||||||||||
Equity compensation benefit | (1.2) | (0.3) | (0.5) | ||||||||||||||
Other | 0.9 | (0.6) | (0.1) | ||||||||||||||
Effective income tax rate | 24.1 | % | 23.3 | % | 23.6 | % |
December 31, | 2021 | 2020 | |||||||||
Balance at beginning of year | $ | 248 | $ | 101 | |||||||
Additions for tax positions related to the current year | 34 | 15 | |||||||||
Additions for tax positions related to prior years | 15 | 3 | |||||||||
Additions for current year acquisitions | — | 200 | |||||||||
Reductions for tax positions related to prior years | (15) | (7) | |||||||||
Reductions due to lapse of statute of limitations | (8) | (24) | |||||||||
Reductions for settlements with tax authorities | (3) | (40) | |||||||||
Balance at end of year | $ | 271 | $ | 248 |
Actual | Minimum to be Well Capitalized | Minimum Capital Requirement | |||||||||||||||||||||||||||||||||
December 31, 2021 | Amount | Ratio | Amount | Ratio | Amount | Ratio (1) | |||||||||||||||||||||||||||||
CSC | |||||||||||||||||||||||||||||||||||
Common Equity Tier 1 Risk-Based Capital | $ | 27,967 | 19.7 | % | N/A | $ | 6,389 | 4.5 | % | ||||||||||||||||||||||||||
Tier 1 Risk-Based Capital | 37,921 | 26.7 | % | N/A | 8,518 | 6.0 | % | ||||||||||||||||||||||||||||
Total Risk-Based Capital | 37,950 | 26.7 | % | N/A | 11,358 | 8.0 | % | ||||||||||||||||||||||||||||
Tier 1 Leverage | 37,921 | 6.2 | % | N/A | 24,346 | 4.0 | % | ||||||||||||||||||||||||||||
Supplementary Leverage Ratio | 37,921 | 6.2 | % | N/A | 18,434 | 3.0 | % | ||||||||||||||||||||||||||||
CSB | |||||||||||||||||||||||||||||||||||
Common Equity Tier 1 Risk-Based Capital | $ | 28,014 | 26.8 | % | $ | 6,787 | 6.5 | % | $ | 4,698 | 4.5 | % | |||||||||||||||||||||||
Tier 1 Risk-Based Capital | 28,014 | 26.8 | % | 8,353 | 8.0 | % | 6,265 | 6.0 | % | ||||||||||||||||||||||||||
Total Risk-Based Capital | 28,033 | 26.8 | % | 10,441 | 10.0 | % | 8,353 | 8.0 | % | ||||||||||||||||||||||||||
Tier 1 Leverage | 28,014 | 7.1 | % | 19,790 | 5.0 | % | 15,832 | 4.0 | % | ||||||||||||||||||||||||||
Supplementary Leverage Ratio | 28,014 | 7.0 | % | N/A | 12,016 | 3.0 | % | ||||||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||||||||
CSC | |||||||||||||||||||||||||||||||||||
Common Equity Tier 1 Risk-Based Capital | $ | 22,916 | 18.5 | % | N/A | $ | 5,575 | 4.5 | % | ||||||||||||||||||||||||||
Tier 1 Risk-Based Capital | 30,649 | 24.7 | % | N/A | 7,433 | 6.0 | % | ||||||||||||||||||||||||||||
Total Risk-Based Capital | 30,688 | 24.8 | % | N/A | 9,910 | 8.0 | % | ||||||||||||||||||||||||||||
Tier 1 Leverage | 30,649 | 6.3 | % | N/A | 19,396 | 4.0 | % | ||||||||||||||||||||||||||||
Supplementary Leverage Ratio | 30,649 | 6.2 | % | N/A | 14,744 | 3.0 | % | ||||||||||||||||||||||||||||
CSB | |||||||||||||||||||||||||||||||||||
Common Equity Tier 1 Risk-Based Capital | $ | 17,526 | 19.2 | % | $ | 5,919 | 6.5 | % | $ | 4,098 | 4.5 | % | |||||||||||||||||||||||
Tier 1 Risk-Based Capital | 17,526 | 19.2 | % | 7,285 | 8.0 | % | 5,464 | 6.0 | % | ||||||||||||||||||||||||||
Total Risk-Based Capital | 17,558 | 19.3 | % | 9,106 | 10.0 | % | 7,285 | 8.0 | % | ||||||||||||||||||||||||||
Tier 1 Leverage | 17,526 | 5.5 | % | 15,979 | 5.0 | % | 12,783 | 4.0 | % | ||||||||||||||||||||||||||
Supplementary Leverage Ratio | 17,526 | 5.4 | % | N/A | 9,763 | 3.0 | % |
December 31, | 2021 | 2020 | |||||||||
CS&Co | |||||||||||
Net capital | $ | 5,231 | $ | 3,117 | |||||||
Minimum dollar requirement(1) | 0.250 | 1.000 | |||||||||
2% of aggregate debit balances | 941 | 616 | |||||||||
Net capital in excess of required net capital | $ | 4,290 | $ | 2,501 | |||||||
TDAC | |||||||||||
Net capital | $ | 5,337 | $ | 4,040 | |||||||
Minimum dollar requirement | 1.500 | 1.500 | |||||||||
2% of aggregate debit balances | 1,007 | 748 | |||||||||
Net capital in excess of required net capital | $ | 4,330 | $ | 3,292 | |||||||
TD Ameritrade, Inc. | |||||||||||
Net capital | $ | 711 | $ | 350 | |||||||
Minimum dollar requirement | 0.250 | 0.250 | |||||||||
2% of aggregate debit balances | — | — | |||||||||
Net capital in excess of required net capital | $ | 711 | $ | 350 |
Investor Services | Advisor Services | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | 2021 | 2020 | 2019 | 2021 | 2020 | 2019 | 2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||
Net Revenues | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest revenue | $ | 6,052 | $ | 4,391 | $ | 4,685 | $ | 1,978 | $ | 1,722 | $ | 1,831 | $ | 8,030 | $ | 6,113 | $ | 6,516 | |||||||||||||||||||||||||||||||||||
Asset management and administration fees | 3,130 | 2,544 | 2,289 | 1,144 | 931 | 922 | 4,274 | 3,475 | 3,211 | ||||||||||||||||||||||||||||||||||||||||||||
Trading revenue | 3,753 | 1,156 | 503 | 399 | 260 | 249 | 4,152 | 1,416 | 752 | ||||||||||||||||||||||||||||||||||||||||||||
Bank deposit account fees | 964 | 255 | — | 351 | 100 | — | 1,315 | 355 | — | ||||||||||||||||||||||||||||||||||||||||||||
Other | 562 | 262 | 146 | 187 | 70 | 96 | 749 | 332 | 242 | ||||||||||||||||||||||||||||||||||||||||||||
Total net revenues | 14,461 | 8,608 | 7,623 | 4,059 | 3,083 | 3,098 | 18,520 | 11,691 | 10,721 | ||||||||||||||||||||||||||||||||||||||||||||
Expenses Excluding Interest | 8,289 | 5,529 | 4,284 | 2,518 | 1,862 | 1,589 | 10,807 | 7,391 | 5,873 | ||||||||||||||||||||||||||||||||||||||||||||
Income before taxes on income | $ | 6,172 | $ | 3,079 | $ | 3,339 | $ | 1,541 | $ | 1,221 | $ | 1,509 | $ | 7,713 | $ | 4,300 | $ | 4,848 | |||||||||||||||||||||||||||||||||||
Capital expenditures | $ | 771 | $ | 535 | $ | 507 | $ | 270 | $ | 206 | $ | 246 | $ | 1,041 | $ | 741 | $ | 753 | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | $ | 399 | $ | 288 | $ | 216 | $ | 150 | $ | 126 | $ | 106 | $ | 549 | $ | 414 | $ | 322 | |||||||||||||||||||||||||||||||||||
Amortization of acquired intangible assets | $ | 499 | $ | 149 | $ | 26 | $ | 116 | $ | 41 | $ | 1 | $ | 615 | $ | 190 | $ | 27 |
Year Ended December 31, | 2021 | 2020 | 2019 | |||||||||||||||||
Common Stock | Nonvoting Common Stock (1) | Common Stock | Nonvoting Common Stock (1) | Common Stock | Nonvoting Common Stock (1) | |||||||||||||||
Basic earnings per share: | ||||||||||||||||||||
Numerator | ||||||||||||||||||||
Net income | $ | 5,610 | $ | 245 | $ | 3,255 | $ | 44 | $ | 3,704 | N/A | |||||||||
Preferred stock dividends and other (2) | (474) | (21) | (253) | (3) | (178) | N/A | ||||||||||||||
Net income available to common stockholders | $ | 5,136 | $ | 224 | $ | 3,002 | $ | 41 | $ | 3,526 | N/A | |||||||||
Denominator | ||||||||||||||||||||
Weighted-average common shares outstanding — basic | 1,808 | 79 | 1,410 | 19 | 1,311 | N/A | ||||||||||||||
Basic earnings per share | $ | 2.84 | $ | 2.84 | $ | 2.13 | $ | 2.13 | $ | 2.69 | N/A | |||||||||
Diluted earnings per share: | ||||||||||||||||||||
Numerator | ||||||||||||||||||||
Net income available to common stockholders | $ | 5,136 | $ | 224 | $ | 3,002 | $ | 41 | $ | 3,526 | N/A | |||||||||
Reallocation of net income available to common stockholders as a result of conversion of nonvoting to voting shares | 224 | — | 41 | — | N/A | N/A | ||||||||||||||
Allocation of net income available to common stockholders: | $ | 5,360 | $ | 224 | $ | 3,043 | $ | 41 | $ | 3,526 | N/A | |||||||||
Denominator | ||||||||||||||||||||
Weighted-average common shares outstanding — basic | 1,808 | 79 | 1,410 | 19 | 1,311 | N/A | ||||||||||||||
Conversion of nonvoting shares to voting shares | 79 | — | 19 | — | N/A | N/A | ||||||||||||||
Common stock equivalent shares related to stock incentive plans | 10 | — | 6 | — | 9 | N/A | ||||||||||||||
Weighted-average common shares outstanding — diluted (3) | 1,897 | 79 | 1,435 | 19 | 1,320 | N/A | ||||||||||||||
Diluted earnings per share | $ | 2.83 | $ | 2.83 | $ | 2.12 | $ | 2.12 | $ | 2.67 | N/A |
Year Ended December 31, | 2021 | 2020 | 2019 | ||||||||||||||
Interest revenue | $ | 11 | $ | 38 | $ | 119 | |||||||||||
Interest expense | (355) | (273) | (248) | ||||||||||||||
Net interest expense | (344) | (235) | (129) | ||||||||||||||
Trading revenue | — | 1 | — | ||||||||||||||
Other revenue | (2) | (1) | (1) | ||||||||||||||
Expenses Excluding Interest: | |||||||||||||||||
Professional services | (17) | (68) | (24) | ||||||||||||||
Other expenses excluding interest | (125) | (85) | (83) | ||||||||||||||
Loss before income tax benefit and equity in net income of subsidiaries | (488) | (388) | (237) | ||||||||||||||
Income tax benefit/(expense) | 32 | 45 | (9) | ||||||||||||||
Loss before equity in net income of subsidiaries | (456) | (343) | (246) | ||||||||||||||
Equity in net income of subsidiaries: | |||||||||||||||||
Equity in undistributed net income/(distributions in excess of net income) of subsidiaries | 3,361 | 2,476 | (1,198) | ||||||||||||||
Dividends from bank subsidiaries | — | — | 4,915 | ||||||||||||||
Dividends from non-bank subsidiaries | 2,950 | 1,166 | 233 | ||||||||||||||
Net Income | 5,855 | 3,299 | 3,704 | ||||||||||||||
Preferred stock dividends and other (1) | 495 | 256 | 178 | ||||||||||||||
Net Income Available to Common Stockholders | $ | 5,360 | $ | 3,043 | $ | 3,526 |
December 31, | 2021 | 2020 | |||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 6,839 | $ | 4,654 | |||||||
Receivables from subsidiaries | 1,288 | 1,260 | |||||||||
Available for sale securities | 4,218 | 4,982 | |||||||||
Investment in non-bank subsidiaries | 34,377 | 29,550 | |||||||||
Investment in bank subsidiaries | 30,720 | 25,548 | |||||||||
Other assets | 357 | 371 | |||||||||
Total assets | $ | 77,799 | $ | 66,365 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Accrued expenses and other liabilities | $ | 618 | $ | 458 | |||||||
Payables to subsidiaries | 80 | 34 | |||||||||
Short-term borrowings | 3,005 | — | |||||||||
Long-term debt | 17,835 | 9,813 | |||||||||
Total liabilities | 21,538 | 10,305 | |||||||||
Stockholders’ equity | 56,261 | 56,060 | |||||||||
Total liabilities and stockholders’ equity | $ | 77,799 | $ | 66,365 |
Year Ended December 31, | 2021 | 2020 | 2019 | ||||||||||||||
Cash Flows from Operating Activities | |||||||||||||||||
Net income | $ | 5,855 | $ | 3,299 | $ | 3,704 | |||||||||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||||||||||||||||
Dividends in excess of (equity in undistributed) earnings of subsidiaries | (3,361) | (2,476) | 1,198 | ||||||||||||||
Other | 21 | 41 | 9 | ||||||||||||||
Net change in: | |||||||||||||||||
Other assets | 76 | (65) | 57 | ||||||||||||||
Accrued expenses and other liabilities | 112 | 34 | 34 | ||||||||||||||
Net cash provided by (used for) operating activities | 2,703 | 833 | 5,002 | ||||||||||||||
Cash Flows from Investing Activities | |||||||||||||||||
Due from (to) subsidiaries — net | 211 | 46 | (122) | ||||||||||||||
Increase in investments in subsidiaries | (10,926) | (2,172) | (1,783) | ||||||||||||||
Repayments (advances) of subordinated loan to CS&Co | — | — | 185 | ||||||||||||||
Purchases of available for sale securities | (8,002) | (5,397) | (1,141) | ||||||||||||||
Proceeds from sales of available for sale securities | 2 | 2 | 181 | ||||||||||||||
Principal payments on available for sale securities | 8,754 | 2,395 | 994 | ||||||||||||||
Net cash provided by (used for) investing activities | (9,961) | (5,126) | (1,686) | ||||||||||||||
Cash Flows from Financing Activities | |||||||||||||||||
Issuance of long-term debt | 7,036 | 3,070 | 593 | ||||||||||||||
Repayment of long-term debt | (1,200) | (700) | — | ||||||||||||||
Issuance of commercial paper | 8,253 | 1,234 | 1,400 | ||||||||||||||
Repayments of commercial paper | (5,250) | (1,234) | (1,400) | ||||||||||||||
Repurchases of common stock | — | — | (2,220) | ||||||||||||||
Net proceeds from preferred stock offerings | 2,806 | 4,940 | — | ||||||||||||||
Redemption of preferred stock | (600) | — | — | ||||||||||||||
Dividends paid | (1,822) | (1,280) | (1,060) | ||||||||||||||
Proceeds from stock options exercised and other | 220 | 79 | 118 | ||||||||||||||
Other financing activities | — | (1) | — | ||||||||||||||
Net cash provided by (used for) financing activities | 9,443 | 6,108 | (2,569) | ||||||||||||||
Increase (Decrease) in Cash and Cash Equivalents | 2,185 | 1,815 | 747 | ||||||||||||||
Cash and Cash Equivalents at Beginning of Year | 4,654 | 2,839 | 2,092 | ||||||||||||||
Cash and Cash Equivalents at End of Year | $ | 6,839 | $ | 4,654 | $ | 2,839 | |||||||||||
Supplemental Cash Flow Information | |||||||||||||||||
Non-Cash Investing and Financing Activity | |||||||||||||||||
Exchange of TDA Holding-issued senior notes for CSC-issued senior notes | $ | 1,987 | $ | — | $ | — |
/s/ DELOITTE & TOUCHE LLP |
Executive Officers of the Registrant | |||||||||||
Name | Age | Title | |||||||||
Charles R. Schwab | 84 | Chairman of the Board | |||||||||
Walter W. Bettinger II | 61 | Chief Executive Officer | |||||||||
Richard A. Wurster | 48 | President | |||||||||
Bernard J. Clark | 63 | Managing Director, Head of Advisor Services | |||||||||
Jonathan M. Craig | 50 | Managing Director, Head of Investor Services & Marketing | |||||||||
Peter B. Crawford | 53 | Managing Director, Chief Financial Officer | |||||||||
Joseph R. Martinetto | 59 | Managing Director, Chief Operating Officer | |||||||||
Peter J. Morgan III | 57 | Managing Director, General Counsel | |||||||||
Nigel J. Murtagh | 58 | Managing Director, Chief Risk Officer |
Exhibit Number | Exhibit | |||||||
2.1 | ||||||||
2.2 | ||||||||
3.11 | ||||||||
3.11(i) | ||||||||
3.14 | ||||||||
3.14(i) | ||||||||
3.15 | ||||||||
3.18 | ||||||||
3.19 | ||||||||
3.20 | ||||||||
3.21 | ||||||||
3.22 | ||||||||
3.23 | ||||||||
3.24 | ||||||||
3.25 | ||||||||
4.3 | ||||||||
4.4 | ||||||||
4.5 |
Exhibit Number | Exhibit | |||||||
4.6 | ||||||||
4.7 | ||||||||
4.8 | ||||||||
4.9 | ||||||||
4.10 | ||||||||
4.11 | Neither the Registrant nor its subsidiaries are parties to any instrument with respect to long-term debt for which securities authorized thereunder exceed 10% of the total assets of the Registrant and its subsidiaries on a consolidated basis. Copies of instruments with respect to long-term debt of lesser amounts will be provided to the SEC upon request. | |||||||
10.4 | Form of Release Agreement dated as of March 31, 1987 among BAC, Registrant, Schwab Holdings, Inc., Charles Schwab & Co., Inc., and former shareholders of Schwab Holdings, Inc., filed as the identically-numbered exhibit to Registrant’s Registration Statement No. 33-16192 on Form S-1 and incorporated herein by reference. | |||||||
10.57 | Registration Rights and Stock Restriction Agreement, dated as of March 31, 1987, between the Registrant and the holders of the Common Stock, filed as Exhibit 4.23 to Registrant’s Registration Statement No. 33-16192 on Form S-1 and incorporated herein by reference. | |||||||
10.72 | ||||||||
10.271 | (2) | |||||||
10.272 | (2) | |||||||
10.314 | (2) | |||||||
10.338 | (2) | |||||||
10.349 | (2) | |||||||
10.362 | (2) | |||||||
10.389 | The Charles Schwab Corporation Corporate Executive Bonus Plan, restated to include amendments approved at the Annual Meeting of Stockholders on May 13, 2015, as amended and restated as of December 13, 2017, filed as Exhibit 10.389 to the Registrant’s Form 10-K for the year ended December 31, 2017, and incorporated herein by reference. | (2) | ||||||
10.402 | (2) | |||||||
10.403 | (2) | |||||||
Exhibit Number | Exhibit | |||||||
10.404 | (2) | |||||||
10.405 | ||||||||
10.406 | ||||||||
10.407 | ||||||||
10.407(i) | Consent, Agreement and Joinder to the Amended and Restated IDA Agreement, dated as of October 6, 2020, by and among Charles Schwab & Co., Inc., TD Ameritrade, Inc., TD Ameritrade Clearing, Inc. and TD Ameritrade Trust Company, filed as Exhibit 10.1 to TD Ameritrade Holding Corporation’s Form 8-K dated October 6, 2020, and incorporated herein by reference. | |||||||
10.407(ii) | ||||||||
10.408 | (2) | |||||||
10.409 | (2) | |||||||
10.410 | (2) | |||||||
10.412 | (2) | |||||||
10.413 | (2) | |||||||
10.414 | (2) | |||||||
10.415 | (2) | |||||||
10.418 | ||||||||
10.419 | ||||||||
10.420 |
Exhibit Number | Exhibit | |||||||
10.423 | (2) | |||||||
10.424 | (2) | |||||||
10.425 | Third Amendment, dated as of September 27, 2021, to Credit Agreement dated April 21, 2017, among TD Ameritrade Clearing, Inc., the lenders party thereto and JP Morgan Chase Bank, N.A., as administrative agent, filed as Exhibit 10.425 to the Registrants’ Form 10-Q for the quarter ended September 30, 2021, and incorporated herein by reference. | |||||||
10.426 | (2) | |||||||
10.427 | (2) | |||||||
10.428 | (2) | |||||||
21.1 | ||||||||
23.1 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | (1) | |||||||
32.2 | (1) | |||||||
101.INS | Inline XBRL Instance Document | (3) | ||||||
101.SCH | Inline XBRL Taxonomy Extension Schema | (3) | ||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation | (3) | ||||||
101.DEF | Inline XBRL Extension Definition | (3) | ||||||
101.LAB | Inline XBRL Taxonomy Extension Label | (3) | ||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation | (3) | ||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |||||||
(1) | Furnished as an exhibit to this annual report on Form 10-K. | |||||||
(2) | Management contract or compensatory plan. | |||||||
(3) | Attached as Exhibit 101 to this Annual Report on Form 10-K for the annual period ended December 31, 2021, are the following materials formatted in XBRL (Extensible Business Reporting Language) (i) the Consolidated Statements of Income, (ii) the Consolidated Statements of Comprehensive Income, (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Cash Flows, (v) the Consolidated Statements of Stockholders’ Equity, and (vi) Notes to Consolidated Financial Statements. |
THE CHARLES SCHWAB CORPORATION | ||||||||
(Registrant) | ||||||||
BY: | /s/ Walter W. Bettinger II | |||||||
Walter W. Bettinger II | ||||||||
Chief Executive Officer |
Signature / Title | Signature / Title | |||||||
/s/ Walter W. Bettinger II | /s/ Peter Crawford | |||||||
Walter W. Bettinger II, | Peter Crawford, | |||||||
Chief Executive Officer and Director | Managing Director, Executive Vice President, and Chief Financial Officer (principal financial and accounting officer) | |||||||
/s/ Charles R. Schwab | /s/ John K. Adams, Jr. | |||||||
Charles R. Schwab, Chairman of the Board | John K. Adams, Jr., Director | |||||||
/s/ Marianne C. Brown | /s/ Joan T. Dea | |||||||
Marianne C. Brown, Director | Joan T. Dea, Director | |||||||
/s/ Christopher V. Dodds | /s/ Stephen A. Ellis | |||||||
Christopher V. Dodds, Director | Stephen A. Ellis, Director | |||||||
/s/ Mark A. Goldfarb | /s/ William S. Haraf | |||||||
Mark A. Goldfarb, Director | William S. Haraf, Director | |||||||
/s/ Frank C. Herringer | /s/ Brian M. Levitt | |||||||
Frank C. Herringer, Director | Brian M. Levitt, Director | |||||||
/s/ Gerri K. Martin-Flickinger | /s/ Bharat B. Masrani | |||||||
Gerri K. Martin-Flickinger, Director | Bharat B. Masrani, Director | |||||||
/s/ Todd M. Ricketts | /s/ Charles A. Ruffel | |||||||
Todd M. Ricketts, Director | Charles A. Ruffel, Director | |||||||
/s/ Arun Sarin | /s/ Paula A. Sneed | |||||||
Arun Sarin, Director | Paula A. Sneed, Director |
SUPPLEMENTAL INFORMATION | |||||
Disclosure | Page | ||||
Average Balance Sheets and Net Interest Revenue | F-2 | ||||
Analysis of Changes in Net Interest Revenue | F-3 | ||||
Bank Loan Portfolio | F-4 | ||||
Allowance for Credit Losses on Bank Loans | F-4 - F5 | ||||
Bank Deposits | F-5 | ||||
For the Year Ended December 31, | 2021 | 2020 | 2019 | ||||||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | ||||||||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 40,325 | $ | 40 | 0.10 | % | $ | 39,052 | $ | 120 | 0.30 | % | $ | 23,512 | $ | 518 | 2.17 | % | |||||||||||
Cash and investments segregated | 43,942 | 24 | 0.05 | % | 34,100 | 141 | 0.41 | % | 15,694 | 345 | 2.17 | % | |||||||||||||||||
Receivables from brokerage clients | 77,768 | 2,455 | 3.11 | % | 28,058 | 848 | 2.97 | % | 19,270 | 821 | 4.20 | % | |||||||||||||||||
Available for sale securities (1,2) | 357,122 | 4,641 | 1.30 | % | 253,555 | 4,537 | 1.78 | % | 58,181 | 1,560 | 2.67 | % | |||||||||||||||||
Held to maturity securities (2) | — | — | — | — | — | — | 134,708 | 3,591 | 2.65 | % | |||||||||||||||||||
Bank loans (3) | 28,789 | 620 | 2.15 | % | 20,932 | 545 | 2.60 | % | 16,832 | 584 | 3.47 | % | |||||||||||||||||
Total interest-earning assets | 547,946 | 7,780 | 1.41 | % | 375,697 | 6,191 | 1.64 | % | 268,197 | 7,419 | 2.75 | % | |||||||||||||||||
Securities lending revenue | 720 | 334 | 147 | ||||||||||||||||||||||||||
Other interest revenue | 6 | 6 | 14 | ||||||||||||||||||||||||||
Total interest-earning assets | 547,946 | 8,506 | 1.54 | % | 375,697 | 6,531 | 1.73 | % | 268,197 | 7,580 | 2.80 | % | |||||||||||||||||
Non-interest-earning assets (4,5) | 41,930 | 38,608 | 11,559 | ||||||||||||||||||||||||||
Total assets | $ | 589,876 | $ | 414,305 | $ | 279,756 | |||||||||||||||||||||||
Liabilities and Stockholders’ Equity: | |||||||||||||||||||||||||||||
Bank deposits | $ | 381,549 | $ | 54 | 0.01 | % | $ | 291,206 | $ | 93 | 0.03 | % | $ | 212,605 | $ | 700 | 0.33 | % | |||||||||||
Payables to brokerage clients | 91,667 | 9 | 0.01 | % | 46,347 | 12 | 0.02 | % | 24,353 | 79 | 0.33 | % | |||||||||||||||||
Short-term borrowings (6) | 3,040 | 9 | 0.30 | % | 89 | — | 0.20 | % | 17 | — | 2.36 | % | |||||||||||||||||
Long-term debt | 17,704 | 384 | 2.17 | % | 8,992 | 289 | 3.22 | % | 7,199 | 258 | 3.58 | % | |||||||||||||||||
Total interest-bearing liabilities | 493,960 | 456 | 0.09 | % | 346,634 | 394 | 0.11 | % | 244,174 | 1,037 | 0.42 | % | |||||||||||||||||
Securities lending expense | 24 | 33 | 38 | ||||||||||||||||||||||||||
Other interest expense | (4) | (9) | (11) | ||||||||||||||||||||||||||
Non-interest-bearing liabilities (4,7) | 39,182 | 32,486 | 14,170 | ||||||||||||||||||||||||||
Total liabilities (8) | 533,142 | 476 | 0.09 | % | 379,120 | 418 | 0.11 | % | 258,344 | 1,064 | 0.39 | % | |||||||||||||||||
Stockholders’ equity (4) | 56,734 | 35,185 | 21,412 | ||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 589,876 | $ | 414,305 | $ | 279,756 | |||||||||||||||||||||||
Net interest revenue | $ | 8,030 | $ | 6,113 | $ | 6,516 | |||||||||||||||||||||||
Net yield on interest-earning assets | 1.45 | % | 1.62 | % | 2.41 | % |
2021 Compared to 2020 Increase (Decrease) Due to Change in: | 2020 Compared to 2019 Increase (Decrease) Due to Change in: | ||||||||||||||||||||||||||||||||||
Average Volume | Average Rate | Total | Average Volume | Average Rate | Total | ||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents (1) | $ | 4 | $ | (84) | $ | (80) | $ | 337 | $ | (735) | $ | (398) | |||||||||||||||||||||||
Cash and investments segregated | 40 | (157) | (117) | 399 | (603) | (204) | |||||||||||||||||||||||||||||
Receivables from brokerage clients | 1,476 | 131 | 1,607 | 369 | (342) | 27 | |||||||||||||||||||||||||||||
Available for sale securities (2,3) | 1,843 | (1,739) | 104 | 5,237 | (2,260) | 2,977 | |||||||||||||||||||||||||||||
Held to maturity securities (3) | — | — | — | (3,591) | — | (3,591) | |||||||||||||||||||||||||||||
Bank loans (4) | 204 | (129) | 75 | 142 | (181) | (39) | |||||||||||||||||||||||||||||
Securities lending revenue | — | 386 | 386 | — | 187 | 187 | |||||||||||||||||||||||||||||
Other interest revenue | — | — | — | — | (8) | (8) | |||||||||||||||||||||||||||||
Total interest-earning assets | $ | 3,567 | $ | (1,592) | $ | 1,975 | $ | 2,893 | $ | (3,942) | $ | (1,049) | |||||||||||||||||||||||
Interest-bearing sources of funds: | |||||||||||||||||||||||||||||||||||
Bank deposits | $ | 27 | $ | (66) | $ | (39) | $ | 259 | $ | (866) | $ | (607) | |||||||||||||||||||||||
Payables to brokerage clients | 9 | (12) | (3) | 73 | (140) | (67) | |||||||||||||||||||||||||||||
Short-term borrowings | 6 | 3 | 9 | 2 | (2) | — | |||||||||||||||||||||||||||||
Long-term debt | 281 | (186) | 95 | 64 | (33) | 31 | |||||||||||||||||||||||||||||
Securities lending expense | — | (9) | (9) | — | (5) | (5) | |||||||||||||||||||||||||||||
Other interest expense | — | 5 | 5 | — | 2 | 2 | |||||||||||||||||||||||||||||
Total sources on which interest is paid | 323 | (265) | 58 | 398 | (1,044) | (646) | |||||||||||||||||||||||||||||
Change in net interest revenue | $ | 3,244 | $ | (1,327) | $ | 1,917 | $ | 2,495 | $ | (2,898) | $ | (403) |
December 31, 2021 | Within 1 year | After 1 year through 5 years | After 5 years through 15 years | After 15 years | Total | ||||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||
First Mortgages | $ | — | $ | 4 | $ | 1,575 | $ | 19,511 | $ | 21,090 | |||||||||||||||||||
HELOCs | 295 | 137 | 216 | — | 648 | ||||||||||||||||||||||||
Total residential real estate | 295 | 141 | 1,791 | 19,511 | 21,738 | ||||||||||||||||||||||||
Pledged asset lines | 11,373 | 1,336 | — | — | 12,709 | ||||||||||||||||||||||||
Other | 5 | 197 | 5 | — | 207 | ||||||||||||||||||||||||
Total | $ | 11,673 | $ | 1,674 | $ | 1,796 | $ | 19,511 | $ | 34,654 |
December 31, 2021 | After 1 year through 5 years | After 5 years through 15 years | After 15 years | ||||||||||||||
Loans with floating or adjustable interest rates | |||||||||||||||||
Residential real estate: | |||||||||||||||||
First Mortgages | $ | — | $ | 32 | $ | 17,058 | |||||||||||
HELOCs | 137 | 216 | — | ||||||||||||||
Total residential real estate | 137 | 248 | 17,058 | ||||||||||||||
Pledged asset lines | 1,336 | — | — | ||||||||||||||
Other | 1 | 2 | — | ||||||||||||||
Total loans with floating or adjustable interest rates | 1,474 | 250 | 17,058 | ||||||||||||||
Loans with predetermined interest rates | |||||||||||||||||
Residential real estate: | |||||||||||||||||
First Mortgages | $ | 4 | $ | 1,543 | $ | 2,453 | |||||||||||
HELOCs | — | — | — | ||||||||||||||
Total residential real estate | 4 | 1,543 | 2,453 | ||||||||||||||
Pledged asset lines | — | — | — | ||||||||||||||
Other | 196 | 3 | — | ||||||||||||||
Total loans with predetermined interest rates | 200 | 1,546 | 2,453 | ||||||||||||||
Total | $ | 1,674 | $ | 1,796 | $ | 19,511 |
December 31, | 2021 | 2020 | |||||||||
Allowance for credit losses to total year-end loans | 0.05 | % | 0.13 | % | |||||||
Nonaccrual loans to total year-end loans | 0.10 | % | 0.37 | % | |||||||
Allowance for credit losses to total nonaccrual year-end loans | 51 | % | 34 | % |
Year ended December 31, | 2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Average loans | Net charge-offs (recoveries) to average loans | Average loans | Net charge-offs (recoveries) to average loans | Average loans | Net charge-offs (recoveries) to average loans | ||||||||||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||||||||
First Mortgages | $ | 17,673 | — | $ | 13,635 | (.01) | % | $ | 10,610 | (.01) | % | ||||||||||||||||||||||||
HELOCs | 731 | (.14) | % | 981 | — | 1,306 | (.08) | % | |||||||||||||||||||||||||||
Total residential real estate | 18,404 | (.01) | % | 14,616 | (.01) | % | 11,916 | (.02) | % | ||||||||||||||||||||||||||
Pledged asset lines | 10,201 | — | 6,125 | — | 4,746 | — | |||||||||||||||||||||||||||||
Other | 184 | .54 | % | 191 | — | 170 | — | ||||||||||||||||||||||||||||
Total | $ | 28,789 | — | $ | 20,932 | — | $ | 16,832 | (.01) | % |
December 31, | 2021 | 2020 | |||||||||||||||||||||
Allowance for Credit Losses | Percent of loans to total loans | Allowance for Credit Losses | Percent of loans to total loans | ||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
First Mortgages | $ | 13 | 60 | % | $ | 22 | 62 | % | |||||||||||||||
HELOCs | 2 | 2 | % | 5 | 4 | % | |||||||||||||||||
Total residential real estate | 15 | 62 | % | 27 | 66 | % | |||||||||||||||||
Pledged asset lines | — | 37 | % | — | 33 | % | |||||||||||||||||
Other | 3 | 1 | % | 3 | 1 | % | |||||||||||||||||
Total | $ | 18 | 100 | % | $ | 30 | 100 | % |
December 31, | 2021 | 2020 | |||||||||||||||
Amount | Rate | Amount | Rate | ||||||||||||||
Analysis of average daily deposits: | |||||||||||||||||
Money market and other savings deposits | $ | 349,665 | 0.01 | % | $ | 271,534 | 0.03 | % | |||||||||
TD BANK USA, NATIONAL ASSOCIATION | |||||
By: | /s/ Gregory Braca | ||||
Name: Gregory Braca | |||||
Title: President & CEO | |||||
TD BANK, NATIONAL ASSOCIATION | |||||
By: | /s/ Gregory Braca | ||||
Name: Gregory Braca | |||||
Title: President & CEO | |||||
THE CHARLES SCHWAB CORPORATION | |||||
By: | /s/ Peter Crawford | ||||
Name: Peter Crawford | |||||
Title: Executive Vice President and Chief Financial Officer | |||||
TD AMERITRADE, INC. | |||||
By: | /s/ Michael Asmus | ||||
Name: Michael Asmus | |||||
Title: Treasurer | |||||
TD AMERITRADE CLEARING, INC. | |||||
By: | /s/ Michael Asmus | ||||
Name: Michael Asmus | |||||
Title: Treasurer |
TD AMERITRADE TRUST COMPANY | |||||
By: | /s/ Michael Asmus | ||||
Name: Michael Asmus | |||||
Title: Treasurer | |||||
CHARLES SCHWAB & CO., INC. | |||||
By: | /s/ Peter Crawford | ||||
Name: Peter Crawford | |||||
Title: Executive Vice President and Chief Financial Officer | |||||
Payment for Units | No payment is required for the Restricted Stock Units that you are receiving. Restricted Stock Units are an unfunded and unsecured obligation of The Charles Schwab Corporation (“Schwab”). | ||||
Vesting | Subject to the provisions of this Restricted Stock Unit Agreement (“Agreement”), a Restricted Stock Unit becomes vested and distributable as of the earliest of the following: (1) The applicable Vesting Date for the Restricted Stock Unit indicated in the Notice of Restricted Stock Unit Grant. (2) Your death. (3) Your disability. (4) Your separation from service, if the separation qualifies as a retirement or a severance eligible termination (provided that vesting shall occur upon a severance eligible termination only to the extent provided in The Charles Schwab Severance Pay Plan (or any successor plan)). (5) A change in control. Unvested units will be considered “Restricted Stock Units.” If your service terminates for any reason, then your Restricted Stock Units will be forfeited to the extent that they have not vested on or before the termination date and do not vest as a result of the termination. This means that the Restricted Stock Units will immediately revert to Schwab. You will receive no payment for Restricted Stock Units that are forfeited. Schwab determines when your service terminates for this purpose. For all purposes of this Agreement, “service” means continuous employment as a common-law employee of Schwab or a parent corporation or subsidiary of Schwab, and “subsidiary” means a subsidiary corporation as defined in section 424(f) of the Internal Revenue Code of 1986, as amended (the “Code”). | ||||
Definition of Fair Market Value | “Fair market value” means the average of the high and low price of a Share (as defined below) as reported on the New York Stock Exchange on the applicable determination date. | ||||
Definition of Disability | For all purposes of this Agreement, “disability” means that you have a disability that qualifies as such under section 409A of |
the Code and due to which you have been determined to be eligible for benefits under Schwab’s long-term disability plan or if you are not covered by Schwab’s long-term disability plan, you are unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which has lasted, or can be expected to last, for a continuous period of not less than 12 months or which can be expected to result in death as determined by Schwab in its sole discretion. | |||||
Definition of Retirement | If you are an employee of Schwab and its subsidiaries, “retirement” means a separation from service for any reason other than death at any time after the earlier of when you attain age 55, but only if, at the time of your separation, you have been credited with at least 10 years of service or when you attain age 65, but only if, at the time of your termination, you have been credited with at least 5 years of service. The phrase “years of service” above has the same meaning given to it under The SchwabPlan Retirement Savings and Investment Plan (or any successor plan). | ||||
Definition of Severance Eligible Termination | For all purposes of this Agreement, "severance eligible termination" means a separation from service entitling you to severance benefits when you have signed your Severance Agreement under The Charles Schwab Severance Pay Plan (or any successor plan). | ||||
Definition of Change in Control | For all purposes of this Agreement, "change in control" means an event that qualifies as a change in control event under section 409A of the Code and as a change in control as defined in [The Charles Schwab Corporation 2013 Stock Incentive Plan] (the “Plan”). | ||||
Definition of Separation From Service | For all purposes of this Agreement, "separation from service" means a separation from service as defined under section 409A of the Code. | ||||
Payment of Shares | Any vested Restricted Stock Units will be paid in shares of common stock of Schwab (“Shares”) as provided herein. Shares that have become vested and distributable under this Agreement shall be distributed as follows: (1) Shares that vest and become distributable on a Vesting Date shall be distributed within 30 days of the Vesting Date. |
(2) Shares that vest and become distributable on death, disability or a change in control, shall be distributable within 90 days of such event. | |||||
(3) Shares that vest and become distributable on a separation from service (either a retirement or a severance eligible termination) shall be distributed within 90 days of the separation from service. Generally, for severance eligible terminations, the distribution date shall be the “termination date” specified in the notice under The Charles Schwab Severance Pay Plan. Notwithstanding the foregoing, if at the time of your separation from service, you are a “specified employee”, you will receive your Shares six months after your separation from service. “Specified Employee” means a “specified employee” within the meaning of section 409A of the Code and any regulatory guidance promulgated thereunder, provided that in determining the compensation of individuals for this purpose, the definition of compensation in Treas. Reg. § 1.415(c)-2(d)(2) shall be used. | |||||
Restrictions on Restricted Stock Units | You may not assign, sell, transfer, pledge, encumber, or otherwise dispose of any Restricted Stock Units without Schwab’s written consent. Schwab will deliver Shares to you only after the Restricted Stock Units vest and after all other terms and conditions in this Agreement have been satisfied. Restricted Stock Units may not be assigned, transferred, pledged, encumbered, or otherwise disposed of in any settlement, judgment, decree or order (including approval of a property settlement agreement) that relates to the provision of child support, alimony payments, or marital property rights or domestic property rights. | ||||
Delivery of Shares After Death | In the event that Shares are distributable upon your death, the Shares will be delivered to your beneficiary or beneficiaries. You may designate one or more beneficiaries by filing a beneficiary designation form with Schwab. You may change your beneficiary designation by filing a new form with Schwab at any time prior to your death. If you do not designate a beneficiary or if your designated beneficiary predeceases you, then your Shares will be delivered to your estate. | ||||
Cancellation of Restricted Stock Units | To the fullest extent permitted by applicable laws, these Restricted Stock Units will immediately be cancelled and will expire in the event that Schwab terminates your employment on account of conduct contrary to the best interests of Schwab, including, without limitation, conduct constituting a violation of law or Schwab policy, fraud, theft, conflict of interest, |
dishonesty or harassment. The determination whether your employment has been terminated on account of conduct inimical to the best interests of Schwab shall be made by Schwab in its sole discretion, and will be entitled to deference upon any review. | |||||
Restrictions on Resale | You agree not to sell any Shares at a time when applicable laws, Schwab’s policies, or an agreement between Schwab and its underwriters prohibit a sale. This restriction will apply as long as your service continues and for such period of time after the termination of your service as Schwab may specify. | ||||
Withholding Taxes | Shares will not be distributed unless you have made acceptable arrangements to pay any applicable withholding taxes that may be due as a result of the vesting and or the distribution of the Shares. These arrangements may include withholding Shares. Schwab may withhold the number of whole Shares, valued at the fair market value on the applicable date, required to satisfy such applicable withholding taxes. Schwab will round up to the next whole Share to cover the applicable withholding taxes, and any amounts in excess of the applicable withholding taxes resulting from rounding up to the next whole Share will be added to your federal income tax withholdings. In the event you do not elect to pay applicable withholding taxes in cash, Schwab shall withhold Shares as noted above. While Schwab will withhold to satisfy applicable withholding taxes, you acknowledge that, regardless of any action taken by Schwab, the ultimate liability for all income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items related to your participation in the Plan and legally applicable to you, is and remains your responsibility and may exceed the amount, if any, actually withheld by Schwab. Applicable withholding taxes due on the distribution of Shares subject to this award following termination of employment will be withheld as noted above, unless you have made acceptable arrangements to pay any applicable withholding taxes in cash. If you elect to pay applicable withholding taxes due upon the distribution of Shares in cash, you are responsible for having sufficient funds in your Schwab brokerage account to cover the applicable withholding taxes at the time they are due. Any withholding taxes due prior to distribution of Shares (e.g., under section 3121(v)(2) of the Code upon retirement eligibility) shall be paid by accelerating the vesting of and withholding of Shares payable in connection with such Restricted Stock Units for participants other than executive officers of Schwab (i.e., individuals holding the office of Executive Vice President or above), who shall pay such |
withholding taxes in cash upon Schwab’s request. Prior to the distribution of Shares, the number of Shares accelerated and withheld for withholding taxes will be rounded down to the next whole Share, and any amounts of less than the fair market value of a Share will be deducted from your pay to cover the applicable withholding taxes due prior to distribution of Shares. Participants may not make any election as to the payment of withholding taxes due prior to the distribution of Shares (e.g., under section 3121(v)(2) of the Code upon retirement eligibility). | |||||
No Stockholder Rights | Your Restricted Stock Units carry no voting or other stockholder rights. You have no rights as a Schwab stockholder until your Restricted Stock Units are settled by issuing Shares. | ||||
Contribution of Par Value | On your behalf, Schwab will contribute to its capital an amount equal to the par value of the Shares issued to you. | ||||
Dividend Equivalent Rights | If Schwab pays cash dividends on Shares, you will receive cash equal to the dividend per Share multiplied by the number of unvested Restricted Stock Units. Each such payment shall be made as soon as practicable following the payment of the actual dividend, but in no event beyond March 15 of the year following the year the actual dividend is paid. | ||||
No Right to Remain Employee | Nothing in this Agreement will be construed as giving you the right to be retained as an employee, contingent worker, or director of Schwab and its subsidiaries for any specific duration or at all. | ||||
Limitation on Payments | If a payment from the Plan would constitute an excess parachute payment under section 280G of the Code or if there have been certain securities law violations, then your grant may be reduced or forfeited and you may be required to disgorge any profit that you have realized from your grant. If a disqualified individual receives a payment or transfer under the Plan that would constitute an excess parachute payment under section 280G of the Code, such payment will be reduced, as described below. Generally, someone is a “disqualified individual” under section 280G if he or she is (a) an officer of Schwab, (b) a member of the group consisting of the highest paid 1% of the employees of Schwab or, if less, the highest paid 250 employees of Schwab, or (c) a 1% stockholder of Schwab. For purposes of this section on “Limitation on Payments,” the term “Schwab” will include affiliated corporations to the extent |
determined by the independent auditors most recently selected by the Board of Directors (the “Auditors”) in accordance with section 280G(d)(5) of the Code. In the event that the Auditors determine that any payment or transfer in the nature of compensation to or for your benefit, whether paid or payable (or transferred or transferable) pursuant to the terms of the Plan or otherwise (a “Payment”), would be nondeductible for federal income tax purposes because of the provisions concerning “excess parachute payments” in section 280G of the Code, then the aggregate present value of all Payments will be reduced (but not below zero) to the Reduced Amount (as defined below); provided, however, that the Compensation Committee (the “Compensation Committee”) of the Board of Directors may specify in writing that the grant will not be so reduced and will not be subject to reduction under this section. For this purpose, the “Reduced Amount” will be the amount, expressed as a present value, which maximizes the aggregate present value of the Payments without causing any Payment to be nondeductible by Schwab because of section 280G of the Code. If the Auditors determine that any Payment would be nondeductible because of section 280G of the Code, then Schwab will promptly give you notice to that effect and a copy of the detailed calculation of the Reduced Amount. The Auditors will determine which and how much of the Payments will be eliminated or reduced (such that the aggregate present value of the Payments equals the Reduced Amount and is consistent with any mandatory eliminations or reductions that apply under other agreements or the Plan). Schwab will notify you promptly of the Auditor’s determination. Present value will be determined in accordance with section 280G(d)(4) of the Code. The Auditors’ determinations will be binding upon you and Schwab and will be made within 60 days of the date when a Payment becomes payable or transferable. As a result of uncertainty in the application of section 280G of the Code at the time of an initial determination by the Auditors, it is possible that Payments will have been made by Schwab that should not have been made (an “Overpayment”) or that additional Payments that will not have been made by Schwab could have been made (an “Underpayment”) consistent in each case with the calculation of the Reduced Amount. In the event the Auditors, based upon the assertion of a deficiency by the Internal Revenue Service against you or Schwab that the Auditors believe has a high probability of success, determine |
that an Overpayment has been made, the amount of such Overpayment will be paid by you to Schwab on demand, together with interest at the applicable federal rate provided in section 7872(f)(2) of the Code. However, no amount will be payable by you to Schwab if and to the extent that such payment would not reduce the amount that is subject to taxation under section 4999 of the Code. In the event the Auditors determine that an Underpayment has occurred, such Underpayment will promptly be paid or transferred by Schwab to or for your benefit, together with interest at the applicable federal rate provided in section 7872(f)(2) of the Code, provided that no such Underpayment related to Shares distributable under this Agreement shall be paid beyond the deadline for making such payments under section 409A of the Code. | |||||
Plan Administration | The Plan administrator has discretionary authority to make all determinations related to this grant and to construe the terms of the Plan, the Notice of Restricted Stock Unit Grant and this Agreement. The Plan administrator’s determinations are conclusive and binding on all persons, and they are entitled to deference upon any review. | ||||
Adjustments | In the event of a stock split, a stock dividend or a similar change in the Shares, the number of Restricted Stock Units that remain subject to forfeiture will be adjusted accordingly. | ||||
Severability | In the event that any provision of this Agreement is held invalid or unenforceable, the provision will be severable from, and such invalidity or unenforceability will not be construed to have any effect on, the remaining provisions of this Agreement. | ||||
Applicable Law | This Agreement will be interpreted and enforced under the laws of the State of Delaware (without regard to their choice-of-law provisions), as such laws are applied to contracts entered into and performed in Delaware. | ||||
The Plan and Other Agreements | The text of the Plan is incorporated in this Agreement by reference. This Agreement (including the Additional Terms and Conditions for Non-U.S. Recipients and the Country-Specific Provisions), the Notice of Restricted Stock Unit Grant, and the Plan constitute the entire understanding between you and Schwab regarding this grant. Any prior agreements, commitments or negotiations concerning this grant are superseded. This Agreement may be amended only by another written agreement, signed by both parties and approved by the Compensation Committee. If there is any inconsistency or conflict between any provision of this Agreement and the Plan, the terms of the Plan will control. |
Payment for Units | No payment is required for the Restricted Stock Units that you are receiving. Restricted Stock Units are an unfunded and unsecured obligation of The Charles Schwab Corporation (“Schwab”). | ||||
Vesting | Subject to the provisions of this Restricted Stock Unit Agreement (“Agreement”), a Restricted Stock Unit becomes vested and distributable as of the earliest of the following: | ||||
(1) The applicable Vesting Date for the Restricted Stock Unit indicated in the Notice of Restricted Stock Unit Grant. | |||||
(2) Your death. | |||||
(3) Your disability. | |||||
(4) Your separation from service due to a severance eligible termination under The Charles Schwab Severance Pay Plan (or any successor plan)). | |||||
(5) A change in control. | |||||
Unvested units will be considered “Restricted Stock Units.” If your service terminates for any reason, then your Restricted Stock Units will be forfeited to the extent that they have not vested on or before the termination date and do not vest as a result of the termination. This means that the Restricted Stock Units will immediately revert to Schwab. You will receive no payment for Restricted Stock Units that are forfeited. Schwab determines when your service terminates for this purpose. For all purposes of this Agreement, “service” means continuous employment as a common-law employee of Schwab or a parent corporation or subsidiary of Schwab, and “subsidiary” means a subsidiary corporation as defined in section 424(f) of the Internal Revenue Code of 1986, as amended (the “Code”). | |||||
Retirement | Restricted Stock Units subject to this grant will not vest upon retirement. | ||||
Definition of Fair Market Value | “Fair market value” means the average of the high and low price of a Share (as defined below) as reported on the New York Stock Exchange on the applicable determination date. |
Definition of Disability | For all purposes of this Agreement, "disability" means that you have a disability that qualifies as such under section 409A of the Code and due to which you have been determined to be eligible for benefits under Schwab’s long-term disability plan or if you are not covered by Schwab’s long-term disability plan, you are unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which has lasted, or can be expected to last, for a continuous period of not less than 12 months or which can be expected to result in death as determined by Schwab in its sole discretion. | ||||
Definition of Severance Eligible Termination | For all purposes of this Agreement, "severance eligible termination" means a separation from service entitling you to severance benefits when you have signed your Severance Agreement under The Charles Schwab Severance Pay Plan (or any successor plan). | ||||
Definition of Change in Control | For all purposes of this Agreement, "change in control" means an event that qualifies as a change in control event under section 409A of the Code and as a change in control as defined in [The Charles Schwab Corporation 2013 Stock Incentive Plan] (the “Plan”). | ||||
Definition of Separation From Service | For all purposes of this Agreement, "separation from service" means a separation from service as defined under section 409A of the Code. | ||||
Payment of Shares | Any vested Restricted Stock Units will be paid in shares of common stock of Schwab (“Shares”) as provided herein. Shares that have become vested and distributable under this Agreement shall be distributed as follows: (1) Shares that vest and become distributable on a Vesting Date shall be distributed within 30 days of the Vesting Date. (2) Shares that vest and become distributable on death, disability or a change in control, shall be distributable within 90 days of such event. (3) Shares that vest and become distributable on a separation from service due to a severance eligible termination shall be distributed within 90 days of the separation from service. Generally, the distribution date shall be the "termination date" specified in the notice under The Charles Schwab Severance Pay Plan. Notwithstanding the foregoing, if at the time of your separation from service, you are a “specified employee”, you will receive your Shares six months after your separation from service. "Specified Employee" means a "specified employee" |
within the meaning of section 409A of the Code and any regulatory guidance promulgated thereunder, provided that in determining the compensation of individuals for this purpose, the definition of compensation in Treas. Reg. § 1.415(c)-2(d)(2) shall be used. | |||||
Restrictions on Restricted Stock Units | You may not assign, sell, transfer, pledge, encumber, or otherwise dispose of any Restricted Stock Units without Schwab’s written consent. Schwab will deliver Shares to you only after the Restricted Stock Units vest and after all other terms and conditions in this Agreement have been satisfied. Restricted Stock Units may not be assigned, transferred, pledged, encumbered, or otherwise disposed of in any settlement, judgment, decree or order (including approval of a property settlement agreement) that relates to the provision of child support, alimony payments, or marital property rights or domestic property rights. | ||||
Delivery of Shares After Death | In the event that Shares are distributable upon your death, the Shares will be delivered to your beneficiary or beneficiaries. You may designate one or more beneficiaries by filing a beneficiary designation form with Schwab. You may change your beneficiary designation by filing a new form with Schwab at any time prior to your death. If you do not designate a beneficiary or if your designated beneficiary predeceases you, then your Shares will be delivered to your estate. | ||||
Cancellation of Restricted Stock Units | To the fullest extent permitted by applicable laws, these Restricted Stock Units will immediately be cancelled and will expire in the event that Schwab terminates your employment on account of conduct contrary to the best interests of Schwab, including, without limitation, conduct constituting a violation of law or Schwab policy, fraud, theft, conflict of interest, dishonesty or harassment. The determination whether your employment has been terminated on account of conduct inimical to the best interests of Schwab shall be made by Schwab in its sole discretion, and will be entitled to deference upon any review. | ||||
Restrictions on Resale | You agree not to sell any Shares at a time when applicable laws, Schwab’s policies, or an agreement between Schwab and its underwriters prohibit a sale. This restriction will apply as long as your service continues and for such period of time after the termination of your service as Schwab may specify. | ||||
Withholding Taxes | Shares will not be distributed unless you have made acceptable arrangements to pay any applicable withholding taxes that may |
be due as a result of the vesting and or the distribution of the Shares. These arrangements may include withholding Shares. Schwab may withhold the number of whole Shares, valued at the fair market value on the applicable date, required to satisfy such applicable withholding taxes. Schwab will round up to the next whole Share to cover the applicable withholding taxes, and any amounts in excess of the applicable withholding taxes resulting from rounding up to the next whole Share will be added to your federal income tax withholdings. In the event you do not elect to pay applicable withholding taxes in cash, Schwab shall withhold Shares as noted above. While Schwab will withhold to satisfy applicable withholding taxes, you acknowledge that, regardless of any action taken by Schwab, the ultimate liability for all income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items related to your participation in the Plan and legally applicable to you, is and remains your responsibility and may exceed the amount, if any, actually withheld by Schwab. Applicable withholding taxes due on the distribution of Shares subject to this award following termination of employment will be withheld as noted above, unless you have made acceptable arrangements to pay any applicable withholding taxes in cash. If you elect to pay applicable withholding taxes due upon the distribution of Shares in cash, you are responsible for having sufficient funds in your Schwab brokerage account to cover the applicable withholding taxes at the time they are due. | |||||
No Stockholder Rights | Your Restricted Stock Units carry no voting or other stockholder rights. You have no rights as a Schwab stockholder until your Restricted Stock Units are settled by issuing Shares. | ||||
Contribution of Par Value | On your behalf, Schwab will contribute to its capital an amount equal to the par value of the Shares issued to you. | ||||
Dividend Equivalent Rights | If Schwab pays cash dividends on Shares, you will receive cash equal to the dividend per Share multiplied by the number of unvested Restricted Stock Units. Each such payment shall be made as soon as practicable following the payment of the actual dividend, but in no event beyond March 15 of the year following the year the actual dividend is paid. | ||||
No Right to Remain Employee | Nothing in this Agreement will be construed as giving you the right to be retained as an employee, contingent worker, or director of Schwab and its subsidiaries for any specific duration or at all. |
Limitation on Payments | If a payment from the Plan would constitute an excess parachute payment under section 280G of the Code or if there have been certain securities law violations, then your grant may be reduced or forfeited and you may be required to disgorge any profit that you have realized from your grant. If a disqualified individual receives a payment or transfer under the Plan that would constitute an excess parachute payment under section 280G of the Code, such payment will be reduced, as described below. Generally, someone is a “disqualified individual” under section 280G if he or she is (a) an officer of Schwab, (b) a member of the group consisting of the highest paid 1% of the employees of Schwab or, if less, the highest paid 250 employees of Schwab, or (c) a 1% stockholder of Schwab. For purposes of this section on “Limitation on Payments,” the term “Schwab" will include affiliated corporations to the extent determined by the independent auditors most recently selected by the Board of Directors (the “Auditors”) in accordance with section 280G(d)(5) of the Code. In the event that the Auditors determine that any payment or transfer in the nature of compensation to or for your benefit, whether paid or payable (or transferred or transferable) pursuant to the terms of the Plan or otherwise (a “Payment”), would be nondeductible for federal income tax purposes because of the provisions concerning “excess parachute payments” in section 280G of the Code, then the aggregate present value of all Payments will be reduced (but not below zero) to the Reduced Amount (as defined below); provided, however, that the Compensation Committee (the “Compensation Committee”) of the Board of Directors may specify in writing that the grant will not be so reduced and will not be subject to reduction under this section. For this purpose, the “Reduced Amount” will be the amount, expressed as a present value, which maximizes the aggregate present value of the Payments without causing any Payment to be nondeductible by Schwab because of section 280G of the Code. If the Auditors determine that any Payment would be nondeductible because of section 280G of the Code, then Schwab will promptly give you notice to that effect and a copy of the detailed calculation of the Reduced Amount. The Auditors will determine which and how much of the Payments will be eliminated or reduced (such that the aggregate present value of the Payments equals the Reduced Amount and is consistent with any mandatory eliminations or reductions that apply under other agreements or the Plan). Schwab will notify |
you promptly of the Auditor's determination. Present value will be determined in accordance with section 280G(d)(4) of the Code. The Auditors’ determinations will be binding upon you and Schwab and will be made within 60 days of the date when a Payment becomes payable or transferable. As a result of uncertainty in the application of section 280G of the Code at the time of an initial determination by the Auditors, it is possible that Payments will have been made by Schwab that should not have been made (an “Overpayment”) or that additional Payments that will not have been made by Schwab could have been made (an “Underpayment”) consistent in each case with the calculation of the Reduced Amount. In the event the Auditors, based upon the assertion of a deficiency by the Internal Revenue Service against you or Schwab that the Auditors believe has a high probability of success, determine that an Overpayment has been made, the amount of such Overpayment will be paid by you to Schwab on demand, together with interest at the applicable federal rate provided in section 7872(f)(2) of the Code. However, no amount will be payable by you to Schwab if and to the extent that such payment would not reduce the amount that is subject to taxation under section 4999 of the Code. In the event the Auditors determine that an Underpayment has occurred, such Underpayment will promptly be paid or transferred by Schwab to or for your benefit, together with interest at the applicable federal rate provided in section 7872(f)(2) of the Code, provided that no such Underpayment related to Shares distributable under this Agreement shall be paid beyond the deadline for making such payments under section 409A of the Code. | |||||
Plan Administration | The Plan administrator has discretionary authority to make all determinations related to this grant and to construe the terms of the Plan, the Notice of Restricted Stock Unit Grant and this Agreement. The Plan administrator’s determinations are conclusive and binding on all persons, and they are entitled to deference upon any review. | ||||
Adjustments | In the event of a stock split, a stock dividend or a similar change in the Shares, the number of Restricted Stock Units that remain subject to forfeiture will be adjusted accordingly. | ||||
Severability | In the event that any provision of this Agreement is held invalid or unenforceable, the provision will be severable from, and such invalidity or unenforceability will not be construed to have any effect on, the remaining provisions of this Agreement. |
Applicable Law | This Agreement will be interpreted and enforced under the laws of the State of Delaware (without regard to their choice-of-law provisions), as such laws are applied to contracts entered into and performed in Delaware. | ||||
The Plan and Other Agreements | The text of the Plan is incorporated in this Agreement by reference. This Agreement (including the Additional Terms and Conditions for Non-U.S. Recipients and the Country-Specific Provisions), the Notice of Restricted Stock Unit Grant, and the Plan constitute the entire understanding between you and Schwab regarding this grant. Any prior agreements, commitments or negotiations concerning this grant are superseded. This Agreement may be amended only by another written agreement, signed by both parties and approved by the Compensation Committee. If there is any inconsistency or conflict between any provision of this Agreement and the Plan, the terms of the Plan will control. |
Subsidiaries of the Registrant | ||
Pursuant to Item 601 (b)(21)(ii) of Regulation S-K, certain subsidiaries of the Registrant have been omitted which, considered in the aggregate as a single subsidiary, would not constitute a significant subsidiary (as defined in Rule 1-02(w) of Regulation S-X) as of December 31, 2021. | ||
Charles Schwab & Co., Inc., a California corporation | ||
Charles Schwab Bank, SSB, at Texas-chartered state savings bank | ||
Charles Schwab Futures and Forex LLC, a Delaware limited liability company | ||
Charles Schwab Investment Advisory, Inc., a Delaware corporation | ||
Charles Schwab Investment Management, Inc., a Delaware corporation | ||
Charles Schwab Premier Bank, SSB, a Texas-chartered state savings bank | ||
Charles Schwab Trust Bank, a Nevada-chartered state savings bank | ||
Schwab Holdings, Inc., a Delaware corporation | ||
Schwab Private Client Investment Advisory, Inc., a Delaware corporation | ||
Schwab Retirement Plan Services, Inc., an Ohio corporation | ||
TD Ameritrade Clearing, Inc., a Nebraska corporation | ||
TD Ameritrade Holding Corporation, a Delaware corporation | ||
TD Ameritrade, Inc., a New York corporation | ||
TD Ameritrade Investment Management, LLC, a Delaware limited liability company | ||
TD Ameritrade Online Holdings Corp., a Delaware corporation |
Registration Statement No. 333-251156 | (Debt Securities, Preferred Stock, Depositary Shares, Common Stock, Purchase Contracts, Warrants, and Units Consisting of Two or More Securities) |
Registration Statement No. 333-237064 | (TD Ameritrade Holding Corporation Long-Term Incentive Plan) | ||||
Registration Statement No. 333-205862 | (The Charles Schwab Corporation 2013 Stock Incentive Plan) | ||||
Registration Statement No. 333-192893 | (The Charles Schwab Corporation Financial Consultant Career Achievement Award Program) | ||||
Registration Statement No. 333-189553 | (The Charles Schwab Corporation 2013 Stock Incentive Plan) | ||||
Registration Statement No. 333-175862 | (The Charles Schwab Corporation 2004 Stock Incentive Plan) | ||||
Registration Statement No. 333-144303 | (The Charles Schwab Corporation Employee Stock Purchase Plan) | ||||
Registration Statement No. 333-131502 | (The Charles Schwab Corporation Deferred Compensation Plan II) | ||||
Registration Statement No. 333-101992 | (The Charles Schwab Corporation 2004 Stock Incentive Plan) | ||||
Registration Statement No. 333-71322 | (The SchwabPlan Retirement Savings and Investment Plan) | ||||
Registration Statement No. 333-63448 | (The Charles Schwab Corporation 2004 Stock Incentive Plan) | ||||
Registration Statement No. 333-47107 | (The Charles Schwab Corporation 2004 Stock Incentive Plan) | ||||
Registration Statement No. 333-44793 | (The Charles Schwab Profit Sharing and Employee Stock Ownership Plan) |
/s/ Deloitte & Touche LLP | ||
Dallas, Texas | ||
February 24, 2022 |
Date: | February 24, 2022 | /s/ Walter W. Bettinger II | |||||||||
Walter W. Bettinger II | |||||||||||
Chief Executive Officer |
Date: | February 24, 2022 | /s/ Peter Crawford | |||||||||
Peter Crawford | |||||||||||
Managing Director, Executive Vice President, and Chief Financial Officer |
/s/ Walter W. Bettinger II | Date: | February 24, 2022 | |||||||||
Walter W. Bettinger II | |||||||||||
Chief Executive Officer |
/s/ Peter Crawford | Date: | February 24, 2022 | |||||||||
Peter Crawford | |||||||||||
Managing Director, Executive Vice President, and Chief Financial Officer |