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Regulatory Requirements
6 Months Ended
Jun. 30, 2020
Banking and Thrift [Abstract]  
Regulatory Requirements Regulatory Requirements

At June 30, 2020, CSC and CSB met all of their respective capital requirements. The regulatory capital and ratios for CSC (consolidated) and CSB are as follows:

 
Actual (1)
 
Minimum to be
Well Capitalized
 
Minimum Capital Requirement
June 30, 2020
 
Amount
 
Ratio
 
Amount
 
Ratio
 
Amount
 
Ratio (2)
CSC
 
 
 
 
 
 
 
 
 
 
 
 
Common Equity Tier 1 Risk-Based Capital
 
$
16,992

 
15.8
%
 
N/A

 
 
 
$
4,826

 
4.5
%
Tier 1 Risk-Based Capital
 
22,255

 
20.8
%
 
N/A

 
 
 
6,435

 
6.0
%
Total Risk-Based Capital
 
22,288

 
20.8
%
 
N/A

 
 
 
8,580

 
8.0
%
Tier 1 Leverage
 
22,255

 
5.9
%
 
N/A

 
 
 
15,046

 
4.0
%
Supplementary Leverage Ratio
 
22,255

 
5.8
%
 
N/A

 
 
 
11,489

 
3.0
%
CSB
 
 
 
 
 
 
 
 
 
 
 
 
Common Equity Tier 1 Risk-Based Capital
 
$
16,055

 
18.9
%
 
$
5,528

 
6.5
%
 
$
3,827

 
4.5
%
Tier 1 Risk-Based Capital
 
16,055

 
18.9
%
 
6,804

 
8.0
%
 
5,103

 
6.0
%
Total Risk-Based Capital
 
16,087

 
18.9
%
 
8,505

 
10.0
%
 
6,804

 
8.0
%
Tier 1 Leverage
 
16,055

 
5.8
%
 
13,848

 
5.0
%
 
11,078

 
4.0
%
Supplementary Leverage Ratio
 
16,055

 
5.7
%
 
N/A

 
N/A

 
8,505

 
3.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
CSC
 
 
 
 
 
 
 
 
 
 
 
 
Common Equity Tier 1 Risk-Based Capital
 
$
17,660

 
19.5
%
 
N/A

 
 
 
$
4,073

 
4.5
%
Tier 1 Risk-Based Capital
 
20,453

 
22.6
%
 
N/A

 
 
 
5,431

 
6.0
%
Total Risk-Based Capital
 
20,472

 
22.6
%
 
N/A

 
 
 
7,241

 
8.0
%
Tier 1 Leverage
 
20,453

 
7.3
%
 
N/A

 
 
 
11,189

 
4.0
%
Supplementary Leverage Ratio
 
20,453

 
7.1
%
 
N/A

 
 
 
8,604

 
3.0
%
CSB
 
 
 
 
 
 
 
 
 
 
 
 
Common Equity Tier 1 Risk-Based Capital
 
$
14,819

 
20.7
%
 
$
4,649

 
6.5
%
 
$
3,218

 
4.5
%
Tier 1 Risk-Based Capital
 
14,819

 
20.7
%
 
5,722

 
8.0
%
 
4,291

 
6.0
%
Total Risk-Based Capital
 
14,837

 
20.7
%
 
7,152

 
10.0
%
 
5,722

 
8.0
%
Tier 1 Leverage
 
14,819

 
7.1
%
 
10,486

 
5.0
%
 
8,389

 
4.0
%
Supplementary Leverage Ratio
 
14,819

 
6.8
%
 
N/A

 
N/A

 
6,497

 
3.0
%
(1) In the interagency regulatory capital and liquidity rules adopted in October 2019, Category III banking organizations such as CSC were given the ability to opt-out of the inclusion of AOCI in regulatory capital, and CSC made this opt-out election as of January 1, 2020. Therefore, AOCI is excluded from the amounts and ratios presented as of March 31, 2020. In 2019, CSC and CSB were required to include all components of AOCI in regulatory capital; the amounts and ratios for December 31, 2019 are presented on this basis.
(2) Under the Basel III capital rule, CSC and CSB are also required to maintain a capital conservation buffer and a countercyclical capital buffer above the regulatory minimum risk-based capital ratios. The capital conservation buffer and countercyclical capital buffer were 2.5% and zero percent, respectively, for both periods presented. If either buffer falls below the minimum requirement, the Company would be subject to limits on capital distributions and discretionary bonus payments to executive officers. At June 30, 2020, the minimum capital requirement plus capital conservation buffer and countercyclical capital buffer for Common Equity Tier 1 Risk-Based Capital, Tier 1 Risk-Based Capital, and Total Risk-Based Capital ratios were 7.0%, 8.5%, and 10.5%, respectively.
N/A Not applicable.

Based on its regulatory capital ratios at June 30, 2020, CSB is considered well capitalized (the highest category) under its respective regulatory capital rules. There are no conditions or events since June 30, 2020 that management believes have changed CSB’s capital category.

At June 30, 2020, the balance sheets of CSPB and Charles Schwab Trust Bank (Trust Bank) consisted primarily of investment securities, and the entities held total assets of $26.0 billion and $11.2 billion, respectively. Based on their regulatory capital ratios, at June 30, 2020, CSPB and Trust Bank are considered well capitalized under their respective regulatory capital rules.
Net capital and net capital requirements for CS&Co are as follows:
 
 
June 30, 2020
 
December 31, 2019
Net Capital
 
$
2,041

 
$
3,700

Minimum net capital required
 
0.250

 
0.250

2% of aggregate debit balances
 
471

 
446

Net Capital in excess of required net capital
 
$
1,570

 
$
3,254


Pursuant to Rule 15c3-3 of the Securities Exchange Act of 1934 and other applicable regulations, Schwab had cash and investments segregated for the exclusive benefit of clients at June 30, 2020. The SEC Customer Protection Rule requires broker-dealers to segregate client fully-paid securities and cash balances not collateralizing margin positions and not swept to money market funds or bank deposit accounts. Amounts included in cash and investments segregated and on deposit for regulatory purposes represent actual balances on deposit. Cash and cash equivalents included in cash and investments segregated and on deposit for regulatory purposes are presented as part of Schwab’s cash balances in the condensed consolidated statements of cash flows.