Regulatory Requirements

3 Months Ended

Mar. 31, 2024

Regulatory Capital Requirements Under Banking Regulations [Abstract]

Regulatory Requirements

Regulatory Requirements

At March 31, 2024, CSC and its banking subsidiaries met all of their respective capital requirements. Regulatory capital and ratios for CSC (consolidated) and CSB are as follows:

	Actual				Minimum to be Well Capitalized				Minimum Capital Requirement
March 31, 2024	Amount		Ratio		Amount		Ratio		Amount		Ratio (1)
CSC
Common Equity Tier 1 Risk-Based Capital	$	32,407	26.7	%	N/A				$	5,460	4.5	%
Tier 1 Risk-Based Capital	41,598		34.3	%	N/A				7,280		6.0	%
Total Risk-Based Capital	41,635		34.3	%	N/A				9,706		8.0	%
Tier 1 Leverage	41,598		8.8	%	N/A				18,845		4.0	%
Supplementary Leverage Ratio	41,598		8.8	%	N/A				14,231		3.0	%
CSB
Common Equity Tier 1 Risk-Based Capital	$	31,944	39.3	%	$	5,282	6.5	%	$	3,657	4.5	%
Tier 1 Risk-Based Capital	31,944		39.3	%	6,501		8.0	%	4,876		6.0	%
Total Risk-Based Capital	31,977		39.4	%	8,126		10.0	%	6,501		8.0	%
Tier 1 Leverage	31,944		10.4	%	15,343		5.0	%	12,275		4.0	%
Supplementary Leverage Ratio	31,944		10.3	%	N/A				9,270		3.0	%
December 31, 2023
CSC
Common Equity Tier 1 Risk-Based Capital	$	31,411	24.5	%	N/A				$	5,770	4.5	%
Tier 1 Risk-Based Capital	40,602		31.7	%	N/A				7,694		6.0	%
Total Risk-Based Capital	40,645		31.7	%	N/A				10,258		8.0	%
Tier 1 Leverage	40,602		8.5	%	N/A				19,043		4.0	%
Supplementary Leverage Ratio	40,602		8.5	%	N/A				14,379		3.0	%
CSB
Common Equity Tier 1 Risk-Based Capital	$	31,777	37.9	%	$	5,448	6.5	%	$	3,771	4.5	%
Tier 1 Risk-Based Capital	31,777		37.9	%	6,705		8.0	%	5,029		6.0	%
Total Risk-Based Capital	31,816		38.0	%	8,381		10.0	%	6,705		8.0	%
Tier 1 Leverage	31,777		10.1	%	15,793		5.0	%	12,634		4.0	%
Supplementary Leverage Ratio	31,777		10.0	%	N/A				9,540		3.0	%

(1) Under risk-based capital rules, CSC and CSB are also required to maintain additional capital buffers above the regulatory minimum risk-based capital ratios. As of March 31, 2024, CSC was subject to a stress capital buffer of 2.5%. In addition, CSB is required to maintain a capital conservation buffer of 2.5%. CSC and CSB are also required to maintain a countercyclical capital buffer above the regulatory minimum risk-based capital ratios, which was zero for both periods presented. If a buffer falls below the minimum requirement, CSC and CSB would be subject to increasingly strict limits on capital distributions and discretionary bonus payments to executive officers. At March 31, 2024, the minimum capital ratio requirements for both CSC and CSB, inclusive of their respective buffers, were 7.0%, 8.5%, and 10.5% for Common Equity Tier 1 Risk-Based Capital, Tier 1 Risk-Based Capital, and Total Risk-Based Capital, respectively.

N/A Not applicable.

Based on its regulatory capital ratios at March 31, 2024, CSB is considered well capitalized (the highest category) under its respective regulatory capital rules. There are no conditions or events since March 31, 2024 that management believes have changed CSB’s capital category.

At March 31, 2024, the balance sheets of Charles Schwab Premier Bank, SSB (CSPB) and Charles Schwab Trust Bank (Trust Bank) consisted primarily of investment securities, and the entities held total assets of $26.0 billion and $10.2 billion, respectively. Based on their regulatory capital ratios, at March 31, 2024, CSPB and Trust Bank are considered well capitalized under their respective regulatory capital rules.

Net capital and net capital requirements for CS&Co, TDAC, and TD Ameritrade, Inc., are as follows:

	March 31, 2024		December 31, 2023
CS&Co
Net capital	$	6,227	$	5,629
Minimum dollar requirement	0.250		0.250
2% of aggregate debit balances	1,146		1,069
Net capital in excess of required net capital	$	5,081	$	4,560
TDAC
Net capital	$	3,144	$	3,634
Minimum dollar requirement	1.500		1.500
2% of aggregate debit balances	506		440
Net capital in excess of required net capital	$	2,638	$	3,194
TD Ameritrade, Inc.
Net capital	$	566	$	444
Minimum dollar requirement	0.250		0.250
2% of aggregate debit balances	—		—
Net capital in excess of required net capital	$	566	$	444

Pursuant to the SEC’s Customer Protection Rule and other applicable regulations, Schwab had cash and investments segregated for the exclusive benefit of clients at March 31, 2024. The SEC’s 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.