Regulatory Requirements |
Regulatory Requirements
At March 31, 2017, both CSC and Schwab Bank met all of their respective capital requirements. Certain events, such as growth in bank deposits and regulatory discretion, could adversely affect CSC’s or Schwab Bank’s ability to meet future capital requirements. The regulatory capital and ratios for CSC and Schwab Bank are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | Actual | | Minimum to be Well Capitalized | | Minimum Capital Requirement | March 31, 2017 | | Amount | | Ratio | | Amount | | Ratio | | Amount | | Ratio | CSC | | | | | | | | | | | | | Common Equity Tier 1 Risk-Based Capital | | $ | 13,094 |
| | 18.3 | % | | N/A |
| | | | $ | 3,212 |
| | 4.5 | % | Tier 1 Risk-Based Capital | | 15,877 |
| | 22.2 | % | | N/A |
| | | | 4,283 |
| | 6.0 | % | Total Risk-Based Capital | | 15,905 |
| | 22.3 | % | | N/A |
| | | | 5,710 |
| | 8.0 | % | Tier 1 Leverage | | 15,877 |
| | 7.1 | % | | N/A |
| | | | 8,915 |
| | 4.0 | % | Schwab Bank | | | | | | | | | | | | | Common Equity Tier 1 Risk-Based Capital | | $ | 12,496 |
| | 19.7 | % | | $ | 4,132 |
| | 6.5 | % | | $ | 2,861 |
| | 4.5 | % | Tier 1 Risk-Based Capital | | 12,496 |
| | 19.7 | % | | 5,086 |
| | 8.0 | % | | 3,814 |
| | 6.0 | % | Total Risk-Based Capital | | 12,522 |
| | 19.7 | % | | 6,357 |
| | 10.0 | % | | 5,086 |
| | 8.0 | % | Tier 1 Leverage | | 12,496 |
| | 7.0 | % | | 8,912 |
| | 5.0 | % | | 7,130 |
| | 4.0 | % | December 31, 2016 | | | | | | | | | | | | | CSC | | | | | | | | | | | | | Common Equity Tier 1 Risk-Based Capital | | $ | 12,574 |
| | 18.4 | % | | N/A |
| | | | $ | 3,068 |
| | 4.5 | % | Tier 1 Risk-Based Capital | | 15,357 |
| | 22.5 | % | | N/A |
| | | | 4,091 |
| | 6.0 | % | Total Risk-Based Capital | | 15,384 |
| | 22.6 | % | | N/A |
| | | | 5,454 |
| | 8.0 | % | Tier 1 Leverage | | 15,357 |
| | 7.2 | % | | N/A |
| | | | 8,516 |
| | 4.0 | % | Schwab Bank | | | | | | | | | | | | | Common Equity Tier 1 Risk-Based Capital | | $ | 11,878 |
| | 19.8 | % | | $ | 3,894 |
| | 6.5 | % | | $ | 2,696 |
| | 4.5 | % | Tier 1 Risk-Based Capital | | 11,878 |
| | 19.8 | % | | 4,793 |
| | 8.0 | % | | 3,595 |
| | 6.0 | % | Total Risk-Based Capital | | 11,904 |
| | 19.9 | % | | 5,992 |
| | 10.0 | % | | 4,793 |
| | 8.0 | % | Tier 1 Leverage | | 11,878 |
| | 7.0 | % | | 8,456 |
| | 5.0 | % | | 6,765 |
| | 4.0 | % |
N/A Not applicable. Based on its regulatory capital ratios at March 31, 2017, Schwab Bank is considered well capitalized (the highest category) under its respective regulatory capital rules. There are no conditions or events since March 31, 2017 that management believes have changed Schwab Bank’s capital category. At March 31, 2017, both CSC’s and Schwab Bank’s capital levels exceeded the fully implemented capital conservation buffer requirement. Net capital and net capital requirements for Schwab and optionsXpress are as follows: | | | | | | | | | | | | | | | | | | March 31, 2017 | | Net Capital | | Minimum Net Capital Required | | 2% of Aggregate Debit Balances | | Net Capital in Excess of Required Capital | Schwab | | $ | 1,896 |
| | $ | 0.250 |
| | $ | 350 |
| | $ | 1,546 |
| optionsXpress | | 285 |
| | 1 |
| | 7 |
| | 278 |
| December 31, 2016 | | | | | | | | | Schwab | | $ | 1,846 |
| | $ | 0.250 |
| | $ | 355 |
| | $ | 1,491 |
| optionsXpress | | 269 |
| | 1 |
| | 8 |
| | 261 |
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