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Schwab Reports Second Quarter Results – Stocks News Feed

Core Net New Assets Total $108.8 Billion, a Second Quarter Record

Client Assets Reach a Record $7.57 Trillion

WESTLAKE, Texas–(BUSINESS WIRE)–#CharlesSchwab–The Charles Schwab Corporation announced today that its net income for the second quarter of 2021 was $1.3 billion, compared with $1.5 billion for the first quarter of 2021, and $671 million for the second quarter of 2020. Net income for the six months ended June 30, 2021 was $2.7 billion, compared with $1.5 billion for the year-earlier period. The company’s financial results include TD Ameritrade from closing on October 6, 2020 forward, as well as certain acquisition and integration-related costs and the amortization of acquired intangibles. For the second quarter and first half of 2021, these transaction-related expenses totaled $298 million and $571 million, respectively, on a pre-tax basis. In addition, the company’s second quarter of 2021 results included a non-deductible charge of $200 million, or $.10 per share, regarding a previously disclosed regulatory matter.


Schwab Reports Second Quarter Results - Stocks News Feed


Schwab Reports Second Quarter Results - Stocks News Feed



 

 

Three Months Ended

June 30,

 

%

 

Six Months Ended

June 30,

 

%

Financial Highlights (1)

 

2021

 

2020

 

Change

 

2021

 

2020

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues (in millions)

 

$

4,527

 

 

$

2,450

 

 

85%

 

$

9,242

 

 

$

5,067

 

 

82%

Net income (in millions)

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

$

1,265

 

 

$

671

 

 

89%

 

$

2,749

 

 

$

1,466

 

 

88%

Adjusted (2)

 

$

1,483

 

 

$

742

 

 

100%

 

$

3,173

 

 

$

1,569

 

 

102%

Diluted earnings per common share

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

$

.59

 

 

$

.48

 

 

23%

 

$

1.32

 

 

$

1.07

 

 

23%

Adjusted (2)

 

$

.70

 

 

$

.54

 

 

30%

 

$

1.55

 

 

$

1.14

 

 

36%

Pre-tax profit margin

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

38.0

%

 

36.2

%

 

 

 

39.8

%

 

38.2

%

 

 

Adjusted (2)

 

44.6

%

 

40.0

%

 

 

 

46.0

%

 

40.9

%

 

 

Return on average common stockholders’ equity (annualized)

 

10

%

 

10

%

 

 

 

10

%

 

12

%

 

 

Return on tangible common equity (annualized) (2)

 

20

%

 

12

%

 

 

 

21

%

 

15

%

 

 

Note: All per-share results are rounded to the nearest cent, based on weighted-average diluted common shares outstanding.

(1)

Approximate impact of the $200 million regulatory matter charge, included in other expense, on results for the three months ended June 30, 2021 is as follows: Diluted earnings per common share, $.10; pre-tax profit margin, 4.4%; return on average common stockholders’ equity, 1%; and return on tangible common equity, 3%.

(2)

Further details on non-GAAP financial measures and a reconciliation of such measures to GAAP reported results are included on pages 10-11 of this release.

CEO Walt Bettinger said, “Schwab’s strong business momentum is sustained by the power of our contemporary full-service model as it continues to attract new clients and deepen existing relationships. During the second quarter, signs of normalcy took root across the U.S. as vaccinations accelerated, social activities largely resumed, and people started returning to corporate offices. At the same time, equity markets continued their ascent, with both the S&P 500® and NASDAQ® achieving record highs during the quarter, while longer-term interest rates fluctuated as investors digested economic recovery data and recent Federal Reserve commentary. Against this evolving backdrop, we continued to support highly engaged investors even as activity levels moderated from the first quarter surge. Clients opened 1.7 million new brokerage accounts in the second quarter, representing our third consecutive quarter in excess of a million new accounts when excluding M&A activity. Daily trade volume averaged 6.0 million over the same period – a 28% slowdown on the heels of the record first quarter, yet a still-impressive 4% increase over the fourth quarter of 2020, when we included TD Ameritrade for the first time. At the same time, both independent advisors and individual clients contributed to our total core net new assets of $108.8 billion, up 133% from a year ago – the highest second quarter in our history and a particularly noteworthy result when considering the impact of seasonal tax-related outflows. Our first half core net new assets reached $257.0 billion, a total which is more than double the first half of 2020 and implies a year-to-date organic growth rate of 8%. Total client assets ended June at a record $7.57 trillion, up 7% from the prior record set three months earlier, and up 84% year-over-year.”

Mr. Bettinger added, “Our full-service model embraces an omni-channel approach – aiming to blend the best elements of human interaction and technology so that clients can access us where, when, and how they choose. Our branch network remains integral to our approach, and we successfully re-opened nearly all of our 406 branches, including 80 independent branches during the second quarter. Additionally, we continue to further diversify our offerings and push forward on our key strategic initiatives via our recent acquisitions. The TD Ameritrade integration is on track, and we’ve rolled out the newly combined Schwab Advisor Network® consisting of a nationwide array of independent advisory firms with a range of capabilities to serve the specialized needs of high and ultra-high net worth investors. Following the early 2021 launch of Wasmer SchroederTM Strategies, client demand has accelerated, with net inflows more than doubling sequentially to $2.2 billion in the second quarter. Finally, our referral program for USAA members has proven a steady source of new accounts with open rates of 5,000 per month on average. Entering the second half of 2021, our focus remains firmly on clients. As we help them work towards their financial goals, strive to meet their service expectations, and drive forward on all of our integration efforts, we are simultaneously building the future of modern wealth management.”

CFO Peter Crawford commented, “We continue to deliver solid financial performance through a combination of ongoing success with clients and sustained expense discipline. On the revenue front, net interest revenue grew 2% versus the first quarter of 2021 as modest growth in interest-earning assets, as well as higher bank and margin loan utilization, helped offset the Federal Reserve’s ongoing Zero Interest Rate Policy and persistent prepayment activity within our investment portfolio. In addition, strong asset gathering and sustained growth in advisory solution enrollments pushed asset management and administration fees up 3% sequentially. Trading revenue fell 21% as client activity stepped down from the dramatic surge of the prior quarter, but still remained quite strong relative to past levels. Total revenues contracted 4% quarter-over-quarter to $4.5 billion. Looking at expenses, typical compensation-related seasonality and the slowdown in client engagement from earlier in 2021 helped shape our second quarter spending as we concurrently worked to enhance service capacity and make progress on our integration efforts. Total GAAP expenses increased 2% sequentially to $2.8 billion for the quarter, including $144 million in acquisition and integration-related costs and $154 million in amortization of acquired intangibles. Exclusive of these items (1), adjusted total expenses were up 1%. The sequential increases in GAAP and adjusted expenses both reflect the $200 million regulatory matter charge. We once again effectively balanced near-term profitability with reinvestment for future growth. Our 38.0% pre-tax profit margin – 44.6% on an adjusted basis (1) – marked the 25th consecutive quarter in excess of 35%.”

Mr. Crawford concluded, “We maintained a consistent approach to balance sheet management during the second quarter as we continued to support organic growth and prepared for initial bank deposit account migrations, which have totaled $9.9 billion to date. We supplemented our funding mix in the second quarter by issuing $2.25 billion in long-term senior notes and repaying $1.2 billion in similar debt that matured in May. In addition, we redeemed our $600 million Series C preferred stock in June. Consolidated balance sheet assets were $575 billion at June 30th, up 2% from the first quarter, and our preliminary Tier 1 Leverage Ratio was flat at 6.4%. The company’s 10% return on equity and 20% ROTCE (1) for the quarter reflect our ability to sustain the healthy financial performance, strong balance sheet, and efficient capital management necessary to build long-term value for both clients and stockholders.”

(1) Further details on non-GAAP financial measures and a reconciliation of such measures to GAAP reported results are included on pages 10-11 of this release.

Commentary from the CFO

Periodically, our Chief Financial Officer provides insight and commentary regarding Schwab’s financial picture at: https://www.aboutschwab.com/cfo-commentary. The most recent commentary, which provides perspective on recent account activity was posted on May 14, 2021.

Forward-Looking Statements

This press release contains forward-looking statements relating to business momentum; growth in the client base, accounts and assets; investments and acquisitions to improve service capacity and the client experience, expand products, services and offerings to meet client needs, diversify revenues, and drive scale and efficiency; strategic initiatives; integration of TD Ameritrade; client demand for Wasmer Schroeder Strategies; USAA referral program; financial performance; expense discipline; the liability and related charge for the pending regulatory matter; balancing near-term profitability with reinvestment for future growth; balance sheet strength; capital management; and long-term value for clients and stockholders. These forward-looking statements reflect management’s expectations as of the date hereof. Achievement of these expectations and objectives is subject to risks and uncertainties that could cause actual results to differ materially from the expressed expectations.

Important factors that may cause such differences include, but are not limited to, the company’s ability to attract and retain clients and registered investment advisors and grow those relationships and client assets; develop and launch new and enhanced products, services, and capabilities, as well as enhance its infrastructure and capacity, in a timely and successful manner; hire talent; support client activity levels; successfully implement integration strategies and plans; monetize client assets; and manage expenses. Other important factors include general market conditions, including equity valuations, trading activity, the level of interest rates – which can impact money market fund fee waivers, and credit spreads; market volatility; client use of the company’s advisory solutions and other products and services; client sensitivity to rates; level of client assets, including cash balances; capital and liquidity needs and management; the transfer of Bank Deposit Account balances; balance sheet cash; the scope and duration of the COVID-19 pandemic and actions taken by governmental authorities to contain the spread of the virus and the economic impact; adverse developments in the resolution and settlement amount of the pending regulatory matter; and other factors set forth in the company’s most recent reports on Form 10-K and Form 10-Q.

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 32.3 million active brokerage accounts, 2.1 million corporate retirement plan participants, 1.6 million banking accounts, and approximately $7.57 trillion in client assets. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiaries, Charles Schwab & Co., Inc., TD Ameritrade, Inc., and TD Ameritrade Clearing, Inc., (members SIPC, https://www.sipc.org), and their affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent, fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at https://www.aboutschwab.com.

TD Ameritrade, Inc. and TD Ameritrade Clearing, Inc. are separate but affiliated companies and subsidiaries of TD Ameritrade Holding Corporation. TD Ameritrade Holding Corporation is a wholly owned subsidiary of The Charles Schwab Corporation. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank.

THE CHARLES SCHWAB CORPORATION

Consolidated Statements of Income

(In millions, except per share amounts)

(Unaudited)

   

 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

 

2021

 

2020

 

2021

 

2020

Net Revenues

 

 

 

 

 

 

 

 

Interest revenue

 

$

2,068

 

 

$

1,486

 

 

$

4,083

 

 

$

3,194

 

Interest expense

 

(121)

 

 

(97)

 

 

(225)

 

 

(233)

 

Net interest revenue

 

1,947

 

 

1,389

 

 

3,858

 

 

2,961

 

Asset management and administration fees (1)

 

1,047

 

 

801

 

 

2,063

 

 

1,628

 

Trading revenue

 

955

 

 

193

 

 

2,171

 

 

381

 

Bank deposit account fees

 

337

 

 

 

 

688

 

 

 

Other

 

241

 

 

67

 

 

462

 

 

97

 

Total net revenues

 

4,527

 

 

2,450

 

 

9,242

 

 

5,067

 

Expenses Excluding Interest

 

 

 

 

 

 

 

 

Compensation and benefits

 

1,318

 

 

819

 

 

2,748

 

 

1,716

 

Professional services

 

247

 

 

198

 

 

473

 

 

380

 

Occupancy and equipment

 

239

 

 

152

 

 

476

 

 

294

 

Advertising and market development

 

128

 

 

70

 

 

244

 

 

137

 

Communications

 

166

 

 

78

 

 

313

 

 

153

 

Depreciation and amortization (2)

 

135

 

 

97

 

 

264

 

 

187

 

Amortization of acquired intangible assets (2)

 

154

 

 

12

 

 

308

 

 

18

 

Regulatory fees and assessments

 

66

 

 

36

 

 

144

 

 

70

 

Other

 

355

 

 

100

 

 

593

 

 

177

 

Total expenses excluding interest

 

2,808

 

 

1,562

 

 

5,563

 

 

3,132

 

Income before taxes on income

 

1,719

 

 

888

 

 

3,679

 

 

1,935

 

Taxes on income

 

454

 

 

217

 

 

930

 

 

469

 

Net Income

 

1,265

 

 

671

 

 

2,749

 

 

1,466

 

Preferred stock dividends and other

 

148

 

 

50

 

 

244

 

 

88

 

Net Income Available to Common Stockholders

 

$

1,117

 

 

$

621

 

 

$

2,505

 

 

$

1,378

 

Weighted-Average Common Shares Outstanding:

 

 

 

 

 

 

 

 

Basic

 

1,886

 

 

1,288

 

 

1,884

 

 

1,287

 

Diluted

 

1,896

 

 

1,294

 

 

1,894

 

 

1,294

 

Earnings Per Common Shares Outstanding (3):

 

 

 

 

 

 

 

 

Basic

 

$

.59

 

 

$

.48

 

 

$

1.33

 

 

$

1.07

 

Diluted

 

$

.59

 

 

$

.48

 

 

$

1.32

 

 

$

1.07

 

(1)

Includes fee waivers of $85 million and $163 million for the three and six months ended June 30, 2021, respectively, and $15 million for the three and six months ended June 30, 2020.

(2)

Beginning in the third quarter of 2020, amortization of acquired intangible assets was reclassified from depreciation and amortization. Prior periods have been reclassified to reflect this change.

(3)

For the three and six months ended June 30, 2021, the Company had voting and nonvoting common stock outstanding. As the participation rights, including dividend and liquidation rights, are identical between the voting and nonvoting stock classes, basic and diluted earnings per share are the same for each class.

THE CHARLES SCHWAB CORPORATION

Financial and Operating Highlights

(Unaudited)

 

 

Q2-21 % change

 

 

2021

 

2020

 

 

vs.

 

vs.

 

 

Second

 

First

 

Fourth

 

Third

 

Second

(In millions, except per share amounts and as noted)

 

Q2-20

 

Q1-21

 

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Quarter

Net Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest revenue

 

40

%

 

2

%

 

 

$

1,947

 

 

$

1,911

 

 

$

1,809

 

 

$

1,343

 

 

$

1,389

 

Asset management and administration fees

 

31

%

 

3

%

 

 

1,047

 

 

1,016

 

 

987

 

 

860

 

 

801

 

Trading revenue

 

N/M

 

(21)

%

 

 

955

 

 

1,216

 

 

854

 

 

181

 

 

193

 

Bank deposit account fees

 

N/M

 

(4)

%

 

 

337

 

 

351

 

 

355

 

 

 

 

 

Other

 

N/M

 

9

%

 

 

241

 

 

221

 

 

171

 

 

64

 

 

67

 

Total net revenues

 

85

%

 

(4)

%

 

 

4,527

 

 

4,715

 

 

4,176

 

 

2,448

 

 

2,450

 

Expenses Excluding Interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

61

%

 

(8)

%

 

 

1,318

 

 

1,430

 

 

1,398

 

 

840

 

 

819

 

Professional services

 

25

%

 

9

%

 

 

247

 

 

226

 

 

269

 

 

194

 

 

198

 

Occupancy and equipment

 

57

%

 

1

%

 

 

239

 

 

237

 

 

254

 

 

155

 

 

152

 

Advertising and market development

 

83

%

 

10

%

 

 

128

 

 

116

 

 

123

 

 

66

 

 

70

 

Communications

 

113

%

 

13

%

 

 

166

 

 

147

 

 

127

 

 

73

 

 

78

 

Depreciation and amortization (1)

 

39

%

 

5

%

 

 

135

 

 

129

 

 

130

 

 

97

 

 

97

 

Amortization of acquired intangible assets (1)

 

N/M

 

 

 

 

154

 

 

154

 

 

147

 

 

25

 

 

12

 

Regulatory fees and assessments

 

83

%

 

(15)

%

 

 

66

 

 

78

 

 

57

 

 

36

 

 

36

 

Other

 

N/M

 

49

%

 

 

355

 

 

238

 

 

195

 

 

73

 

 

100

 

Total expenses excluding interest

 

80

%

 

2

%

 

 

2,808

 

 

2,755

 

 

2,700

 

 

1,559

 

 

1,562

 

Income before taxes on income

 

94

%

 

(12)

%

 

 

1,719

 

 

1,960

 

 

1,476

 

 

889

 

 

888

 

Taxes on income

 

109

%

 

(5)

%

 

 

454

 

 

476

 

 

341

 

 

191

 

 

217

 

Net Income

 

89

%

 

(15)

%

 

 

$

1,265

 

 

$

1,484

 

 

$

1,135

 

 

$

698

 

 

$

671

 

Preferred stock dividends and other

 

196

%

 

54

%

 

 

148

 

 

96

 

 

85

 

 

83

 

 

50

 

Net Income Available to Common Stockholders

 

80

%

 

(20)

%

 

 

$

1,117

 

 

$

1,388

 

 

$

1,050

 

 

$

615

 

 

$

621

 

Earnings per common share (2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

23

%

 

(20)

%

 

 

$

.59

 

 

$

.74

 

 

$

.57

 

 

$

.48

 

 

$

.48

 

Diluted

 

23

%

 

(19)

%

 

 

$

.59

 

 

$

.73

 

 

$

.57

 

 

$

.48

 

 

$

.48

 

Dividends declared per common share

 

 

 

 

 

 

$

.18

 

 

$

.18

 

 

$

.18

 

 

$

.18

 

 

$

.18

 

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

46

%

 

 

 

 

1,886

 

 

1,882

 

 

1,848

 

 

1,289

 

 

1,288

 

Diluted

 

47

%

 

 

 

 

1,896

 

 

1,892

 

 

1,855

 

 

1,294

 

 

1,294

 

Performance Measures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax profit margin

 

 

 

 

 

 

38.0

%

 

41.6

%

 

35.3

%

 

36.3

%

 

36.2

%

Return on average common stockholders’ equity (annualized) (3)

 

 

 

 

 

 

10

%

 

12

%

 

11

%

 

10

%

 

10

%

Financial Condition (at quarter end, in billions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

(10)

%

 

(38)

%

 

 

$

30.3

 

 

$

48.6

 

 

$

40.3

 

 

$

27.5

 

 

$

33.6

 

Cash and investments segregated

 

20

%

 

(1)

%

 

 

39.9

 

 

40.4

 

 

50.4

 

 

29.6

 

 

33.2

 

Receivables from brokerage clients — net

 

N/M

 

10

%

 

 

82.2

 

 

74.7

 

 

64.4

 

 

25.4

 

 

21.4

 

Available for sale securities

 

28

%

 

5

%

 

 

359.6

 

 

341.6

 

 

337.4

 

 

303.8

 

 

281.2

 

Bank loans — net

 

38

%

 

14

%

 

 

28.9

 

 

25.4

 

 

23.8

 

 

22.3

 

 

20.9

 

Total assets

 

43

%

 

2

%

 

 

574.5

 

 

563.5

 

 

549.0

 

 

419.4

 

 

400.5

 

Bank deposits

 

22

%

 

 

 

 

368.6

 

 

369.9

 

 

358.0

 

 

320.7

 

 

301.6

 

Payables to brokerage clients

 

110

%

 

4

%

 

 

105.0

 

 

101.3

 

 

104.2

 

 

52.0

 

 

50.1

 

Short-term borrowings

 

N/M

 

40

%

 

 

3.5

 

 

2.5

 

 

 

 

 

 

 

Long-term debt

 

120

%

 

6

%

 

 

18.7

 

 

17.7

 

 

13.6

 

 

7.8

 

 

8.5

 

Stockholders’ equity

 

87

%

 

3

%

 

 

57.5

 

 

55.6

 

 

56.1

 

 

31.3

 

 

30.8

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Full-time equivalent employees (at quarter end, in thousands)

 

49

%

 

2

%

 

 

32.5

 

 

32.0

 

 

32.0

 

 

22.1

 

 

21.8

 

Capital expenditures — purchases of equipment, office facilities, and

property, net (in millions)

 

33

%

 

8

%

 

 

$

225

 

 

$

209

 

 

$

200

 

 

$

122

 

 

$

169

 

Expenses excluding interest as a percentage of average client assets

(annualized)

 

 

 

 

 

 

0.15

%

 

0.16

%

 

0.17

%

 

0.14

%

 

0.16

%

Clients’ Daily Average Trades (DATs) (in thousands)

 

N/M

 

(28)

%

 

 

6,042

 

 

8,414

 

 

5,796

 

 

1,460

 

 

1,619

 

Number of Trading Days

 

 

 

3

%

 

 

63.0

 

 

61.0

 

 

63.0

 

 

64.0

 

 

63.0

 

Revenue Per Trade (4)

 

33

%

 

6

%

 

 

$

2.51

 

 

$

2.37

 

 

$

2.34

 

 

$

1.94

 

 

$

1.89

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note: The above table reflects the recognition of TD Ameritrade’s assets acquired and liabilities assumed at provisional fair value as of October 6, 2020. Results of operations and metrics are inclusive of TD Ameritrade beginning October 6, 2020.

(1)

Beginning in the third quarter of 2020, amortization of acquired intangible assets was reclassified from depreciation and amortization. Prior periods have been reclassified to reflect this change.

(2)

Beginning in the fourth quarter of 2020, the Company had voting and nonvoting common stock outstanding. As the participation rights, including dividend and liquidation rights, are identical between the voting and nonvoting stock classes, basic and diluted earnings per share are the same for each class.

(3)

Return on average common stockholders’ equity is calculated using net income available to common stockholders divided by average common stockholders’ equity.

(4)

Revenue per trade is calculated as trading revenue divided by DATs multiplied by the number of trading days.

N/M Not meaningful. Percentage changes greater than 200% are presented as not meaningful.

THE CHARLES SCHWAB CORPORATION

Net Interest Revenue Information

(In millions, except ratios or as noted)

(Unaudited)

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

Average

Balance

 

Interest

Revenue/

Expense

 

Average

Yield/

Rate

 

 

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

 

$

41,913

 

 

$

9

 

 

0.07

%

 

 

$

56,553

 

 

$

19

 

 

0.13

%

 

 

$

40,414

 

 

$

16

 

 

0.08

%

 

 

$

44,343

 

 

$

104

 

 

0.46

%

Cash and investments segregated

 

41,037

 

 

4

 

 

0.04

%

 

 

33,521

 

 

27

 

 

0.32

%

 

 

44,573

 

 

14

 

 

0.06

%

 

 

28,619

 

 

114

 

 

0.79

%

Receivables from brokerage clients

 

75,737

 

 

609

 

 

3.18

%

 

 

17,915

 

 

111

 

 

2.44

%

 

 

71,760

 

 

1,172

 

 

3.25

%

 

 

18,533

 

 

279

 

 

2.97

%

Available for sale securities (1)

 

344,719

 

 

1,103

 

 

1.28

%

 

 

234,346

 

 

1,146

 

 

1.95

%

 

 

341,500

 

 

2,194

 

 

1.28

%

 

 

216,045

 

 

2,331

 

 

2.15

%

Bank loans

 

27,234

 

 

148

 

 

2.18

%

 

 

20,163

 

 

133

 

 

2.63

%

 

 

25,862

 

 

287

 

 

2.22

%

 

 

19,530

 

 

277

 

 

2.84

%

Total interest-earning assets

 

530,640

 

 

1,873

 

 

1.40

%

 

 

362,498

 

 

1,436

 

 

1.58

%

 

 

524,109

 

 

3,683

 

 

1.40

%

 

 

327,070

 

 

3,105

 

 

1.89

%

Securities lending revenue (2)

 

 

 

194

 

 

 

 

 

 

 

49

 

 

 

 

 

 

 

398

 

 

 

 

 

 

 

86

 

 

 

Other interest revenue (2)

 

 

 

1

 

 

 

 

 

 

 

1

 

 

 

 

 

 

 

2

 

 

 

 

 

 

 

3

 

 

 

Total interest-earning assets (3)

 

$

530,640

 

 

$

2,068

 

 

1.55

%

 

 

$

362,498

 

 

$

1,486

 

 

1.63

%

 

 

$

524,109

 

 

$

4,083

 

 

1.55

%

 

 

$

327,070

 

 

$

3,194

 

 

1.94

%

Funding sources

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bank deposits

 

$

368,026

 

 

$

13

 

 

0.01

%

 

 

$

288,990

 

 

$

12

 

 

0.02

%

 

 

$

365,576

 

 

$

26

 

 

0.01

%

 

 

$

258,256

 

 

$

69

 

 

0.05

%

Payables to brokerage clients

 

87,367

 

 

2

 

 

0.01

%

 

 

37,500

 

 

1

 

 

0.01

%

 

 

87,353

 

 

4

 

 

0.01

%

 

 

33,894

 

 

9

 

 

0.05

%

Short-term borrowings (4)

 

3,245

 

 

3

 

 

0.33

%

 

 

39

 

 

 

 

0.24

%

 

 

2,175

 

 

3

 

 

0.30

%

 

 

21

 

 

 

 

0.31

%

Long-term debt

 

18,349

 

 

97

 

 

2.12

%

 

 

8,524

 

 

77

 

 

3.60

%

 

 

16,308

 

 

182

 

 

2.23

%

 

 

8,025

 

 

143

 

 

3.57

%

Total interest-bearing liabilities

 

476,987

 

 

115

 

 

0.10

%

 

 

335,053

 

 

90

 

 

0.11

%

 

 

471,412

 

 

215

 

 

0.09

%

 

 

300,196

 

 

221

 

 

0.15

%

Non-interest-bearing funding sources (3)

 

53,653

 

 

 

 

 

 

 

27,445

 

 

 

 

 

 

 

52,697

 

 

 

 

 

 

 

26,874

 

 

 

 

 

Securities lending expense (2)

 

 

 

7

 

 

 

 

 

 

 

9

 

 

 

 

 

 

 

12

 

 

 

 

 

 

 

16

 

 

 

Other interest expense (2)

 

 

 

(1)

 

 

 

 

 

 

 

(2)

 

 

 

 

 

 

 

(2)

 

 

 

 

 

 

 

(4)

 

 

 

Total funding sources (3)

 

$

530,640

 

 

$

121

 

 

0.09

%

 

 

$

362,498

 

 

$

97

 

 

0.10

%

 

 

$

524,109

 

 

$

225

 

 

0.08

%

 

 

$

327,070

 

 

$

233

 

 

0.14

%

Net interest revenue

 

 

 

$

1,947

 

 

1.46

%

 

 

 

 

$

1,389

 

 

1.53

%

 

 

 

 

$

3,858

 

 

1.47

%

 

 

 

 

$

2,961

 

 

1.80

%

(1)

Amounts have been calculated based on amortized cost.

(2)

Beginning in the fourth quarter of 2020, securities lending revenue has been reclassified from broker-related receivables and other revenue. Securities lending expense has been reclassified from other expense. Prior period amounts have been reclassified to reflect this change.

(3)

Beginning in the fourth quarter of 2020, broker-related receivables were removed from total interest-earning assets and netted against non-interest-bearing funding sources, resulting in an immaterial reduction to total interest-earning assets and total funding sources. Prior period amounts have been reclassified to reflect this change.

(4)

Interest revenue or expense was less than $500 thousand in the period or periods presented.

Contacts

MEDIA:

Mayura Hooper

Charles Schwab

Phone: 415-667-1525

INVESTORS/ANALYSTS:

Jeff Edwards

Charles Schwab

Phone: 415-667-1524

Read full story here


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