Charles Schwab 2015 Annual Report Download - page 98
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THE CHARLES SCHWAB CORPORATION
Notes to Consolidated Financial Statements
(Tabular Amounts in Millions, Except Per Share Data, Option Price Amounts, Ratios, or as Noted)
- 78 -
Aggregate assets, liabilities and maximum exposure to loss
The aggregate assets, liabilities, and maximum exposure to loss from those VIEs in which the Company holds a variable
interest, but as to which the Company has concluded it is not the primary beneficiary, are summarized in the table below:
December 31, 2015 December 31, 2014
Maximum Maximum
Aggregate Aggregate exposure Aggregate Aggregate exposure
assets liabilities to loss assets liabilities to loss
LIHTC Investments (1) $ 104 $ 84 $ 104 $ 45 $ 40 $ 45
Other CRA Investments (2) 57 - 66 37 - 62
Total $ 161 $ 84 $ 170 $ 82 $ 40 $ 107
(1) LIHTC investments are recorded using the proportional amortization method.
(2) Other CRA investments are recorded using either the cost method or the equity method. Aggregate assets are included in
either other assets or bank loans – net on the consolidated balance sheets.
The Company’s maximum exposure to loss would result from the loss of the investments, including any committed amounts.
During the years ended December 31, 2015 and 2014, the Company did not provide or intend to provide financial or other
support to the VIEs that it was not contractually required to provide.
11. Bank Deposits
Bank deposits consist of interest-bearing and non-interest-bearing deposits as follows:
December 31, 2015 2014
Interest-bearing deposits:
Deposits swept from brokerage accounts $ 108,137 $ 82,101
Checking 12,822 12,318
Savings and other 7,896 7,832
Total interest-bearing deposits 128,855 102,251
N
on-interest-bearing deposits 647 564
Total bank deposits $ 129,502 $ 102,815
12. Payables to Brokers, Dealers, and Clearing Organizations
Payables to brokers, dealers, and clearing organizations include securities loaned of $2.2 billion and $1.5 billion at
December 31, 2015 and 2014, respectively. The cash collateral received from counterparties under securities lending
transactions was equal to or greater than the market value of the securities loaned at December 31, 2015 and 2014.
13. Payables to Brokerage Clients
The principal source of funding for Schwab’s margin lending is cash balances in brokerage client accounts, which are
included in payables to brokerage clients. Cash balances in interest-bearing brokerage client accounts were $26.6 billion and
$27.6 billion at December 31, 2015 and 2014, respectively. The average rate paid on cash balances in interest-bearing
brokerage client accounts was 0.01% in 2015 and 2014.