Regulatory Requirements

9 Months Ended

Sep. 30, 2017

Banking and Thrift [Abstract]

Regulatory Requirements

Regulatory Requirements

At September 30, 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
September 30, 2017	Amount		Ratio		Amount		Ratio		Amount		Ratio
CSC
Common Equity Tier 1 Risk-Based Capital	$	14,128	19.6	%	N/A				$	3,242	4.5	%
Tier 1 Risk-Based Capital	16,911		23.5	%	N/A				4,322		6.0	%
Total Risk-Based Capital	16,939		23.5	%	N/A				5,763		8.0	%
Tier 1 Leverage	16,911		7.7	%	N/A				8,802		4.0	%
Schwab Bank
Common Equity Tier 1 Risk-Based Capital	$	12,862	20.0	%	$	4,171	6.5	%	$	2,888	4.5	%
Tier 1 Risk-Based Capital	12,862		20.0	%	5,134		8.0	%	3,850		6.0	%
Total Risk-Based Capital	12,889		20.1	%	6,417		10.0	%	5,134		8.0	%
Tier 1 Leverage	12,862		7.2	%	8,923		5.0	%	7,138		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 September 30, 2017, Schwab Bank is considered well capitalized (the highest category) under its respective regulatory capital rules. There are no conditions or events since September 30, 2017 that management believes have changed Schwab Bank’s capital category. At September 30, 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:

September 30, 2017	Net Capital		Minimum Net Capital Required		2% of Aggregate Debit Balances		Net Capital in Excess of Required Capital
Schwab	$	1,974	$	0.250	$	394	$	1,580
optionsXpress	295		1		7		288
December 31, 2016
Schwab	$	1,846	$	0.250	$	355	$	1,491
optionsXpress	269		1		8		261