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Investment Securities | 6 Months Ended
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Jun. 30, 2025
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | Investment Securities The amortized cost, gross unrealized gains and losses, and fair value of the Company’s AFS and HTM investment securities are as follows:
June 30, 2025 |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Available for sale securities |  |  |  |  |  |  |  |
U.S. agency mortgage-backed securities |  | $ | 50,282 |  |  | $ | — |  |  | $ | 3,992 |  |  | $ | 46,290 |
U.S. Treasury securities |  | 9,674 |  |  | 1 |  |  | 284 |  |  | 9,391 |
Corporate debt securities (1) |  | 6,717 |  |  | — |  |  | 476 |  |  | 6,241 |
Asset-backed securities (2) |  | 4,852 |  |  | 1 |  |  | 179 |  |  | 4,674 |
U.S. state and municipal securities |  | 599 |  |  | — |  |  | 42 |  |  | 557 |
Foreign government agency securities |  | 329 |  |  | — |  |  | — |  |  | 329 |
Non-agency commercial mortgage-backed securities |  | 121 |  |  | — |  |  | 10 |  |  | 111 |
Other |  | 21 |  |  | — |  |  | 2 |  |  | 19 |
Unallocated portfolio layer method fair value basis adjustments (3) |  | 9 |  |  | — |  |  | 9 |  |  | — |
Total available for sale securities |  | $ | 72,604 |  |  | $ | 2 |  |  | $ | 4,994 |  |  | $ | 67,612 |
Held to maturity securities |  |  |  |  |  |  |  |
U.S. agency mortgage-backed securities |  | $ | 139,684 |  |  | $ | 1,442 |  |  | $ | 11,125 |  |  | $ | 130,001 |
Total held to maturity securities |  | $ | 139,684 |  |  | $ | 1,442 |  |  | $ | 11,125 |  |  | $ | 130,001 |
December 31, 2024 |  |  |  |  |  |  |  |
Available for sale securities |  |  |  |  |  |  |  |
U.S. agency mortgage-backed securities |  | $ | 57,262 |  |  | $ | — |  |  | $ | 5,429 |  |  | $ | 51,833 |
U.S. Treasury securities |  | 14,939 |  |  | 1 |  |  | 471 |  |  | 14,469 |
Corporate debt securities (1) |  | 10,166 |  |  | — |  |  | 587 |  |  | 9,579 |
Asset-backed securities (2) |  | 6,106 |  |  | — |  |  | 196 |  |  | 5,910 |
U.S. state and municipal securities |  | 603 |  |  | — |  |  | 54 |  |  | 549 |
Foreign government agency securities |  | 533 |  |  | — |  |  | 6 |  |  | 527 |
Non-agency commercial mortgage-backed securities |  | 121 |  |  | — |  |  | 12 |  |  | 109 |
Other |  | 21 |  |  | — |  |  | 3 |  |  | 18 |
Unallocated portfolio layer method fair value basis adjustments (3) |  | (47) |  |  | — |  |  | (47) |  |  | — |
Total available for sale securities |  | $ | 89,704 |  |  | $ | 1 |  |  | $ | 6,711 |  |  | $ | 82,994 |
Held to maturity securities |  |  |  |  |  |  |  |
U.S. agency mortgage-backed securities |  | $ | 146,453 |  |  | $ | 146 |  |  | $ | 13,994 |  |  | $ | 132,605 |
Total held to maturity securities |  | $ | 146,453 |  |  | $ | 146 |  |  | $ | 13,994 |  |  | $ | 132,605 |
(1) As of June 30, 2025 and December 31, 2024, approximately 26% and 35%, respectively, of the total AFS in corporate debt securities were issued by institutions in the financial services industry. Approximately 21% and 16% of the holdings of these securities were issued by institutions in the information technology industry as of June 30, 2025 and December 31, 2024, respectively. Approximately 20% and 18% of the holdings of these securities were issued by companies in the consumer staples industry as of June 30, 2025 and December 31, 2024, respectively. (2) Approximately 74% and 62% of asset-backed securities held as of June 30, 2025 and December 31, 2024, respectively, were Federal Family Education Loan Program Asset-Backed Securities. Asset-backed securities collateralized by credit card receivables represented approximately 19% and 25% of the asset-backed securities held as of June 30, 2025 and December 31, 2024, respectively. (3) This represents the amount of portfolio layer method (PLM) fair value hedge basis adjustments related to AFS securities hedged in a closed portfolio. See Note 11 for more information on PLM hedge accounting. At June 30, 2025, our banking subsidiaries had pledged investment securities with a fair value of $61.3 billion (collateral value of $56.9 billion) as collateral to secure borrowing capacity on secured credit facilities with the FHLB (see Note 9). Our banking subsidiaries also pledge investment securities as collateral to secure borrowing capacity at the Federal Reserve discount window, and had pledged securities with a fair value of $31.1 billion (collateral value of $29.9 billion) as collateral for this facility at June 30, 2025. The Company also pledges investment securities issued by federal agencies to secure certain trust deposits. The fair value and collateral value of these pledged securities was $1.7 billion at June 30, 2025. At June 30, 2025, our banking subsidiaries had pledged HTM securities as collateral under repurchase agreements with external financial institutions and the FICC. HTM securities pledged were U.S. agency mortgage-backed securities with an aggregate amortized cost of $6.2 billion, of which $5.2 billion may be sold, repledged, or otherwise used by the counterparties. See Notes 9 and 12 for additional information on these repurchase agreements. At June 30, 2025, the Company had pledged AFS securities consisting of U.S. Treasury securities with an aggregate fair value of $225 million as initial margin on interest rate swaps (see Notes 11 and 12). All of Schwab’s interest rate swaps are cleared through central counterparty (CCP) clearing houses which require the Company to post initial margin as collateral against potential losses. Initial margin is posted through futures commission merchants (FCM) which serve as the intermediary between the CCPs and Schwab. The FCM agreements governing our swaps allow for securities pledged as initial margin to be sold, repledged, or otherwise used by the FCM. AFS securities with unrealized losses, aggregated by category and period of continuous unrealized loss, are as follows:
| Less than 12 months |  | 12 months or longer |  | Total
June 30, 2025 | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Available for sale securities |  |  |  |  |  |  |  |  |  |  |
U.S. agency mortgage-backed securities (1) | $ | 1 |  |  | $ | — |  |  | $ | 46,254 |  |  | $ | 3,992 |  |  | $ | 46,255 |  |  | $ | 3,992 |
U.S. Treasury securities | 2,024 |  |  | 1 |  |  | 6,994 |  |  | 283 |  |  | 9,018 |  |  | 284 |
Corporate debt securities | — |  |  | — |  |  | 6,241 |  |  | 476 |  |  | 6,241 |  |  | 476 |
Asset-backed securities | 119 |  |  | 1 |  |  | 4,324 |  |  | 178 |  |  | 4,443 |  |  | 179 |
U.S. state and municipal securities | 27 |  |  | 3 |  |  | 530 |  |  | 39 |  |  | 557 |  |  | 42 |
Non-agency commercial mortgage-backed securities | — |  |  | — |  |  | 111 |  |  | 10 |  |  | 111 |  |  | 10 |
Other | — |  |  | — |  |  | 19 |  |  | 2 |  |  | 19 |  |  | 2 |
Total (2) | $ | 2,171 |  |  | $ | 5 |  |  | $ | 64,473 |  |  | $ | 4,980 |  |  | $ | 66,644 |  |  | $ | 4,985 |
December 31, 2024 |  |  |  |  |  |  |  |  |  |  |
Available for sale securities |  |  |  |  |  |  |  |  |  |  |
U.S. agency mortgage-backed securities | $ | — |  |  | $ | — |  |  | $ | 51,833 |  |  | $ | 5,429 |  |  | $ | 51,833 |  |  | $ | 5,429 |
U.S. Treasury securities (1) | 243 |  |  | — |  |  | 12,727 |  |  | 471 |  |  | 12,970 |  |  | 471 |
Corporate debt securities | — |  |  | — |  |  | 9,579 |  |  | 587 |  |  | 9,579 |  |  | 587 |
Asset-backed securities (1) | 12 |  |  | — |  |  | 5,888 |  |  | 196 |  |  | 5,900 |  |  | 196 |
U.S. state and municipal securities | — |  |  | — |  |  | 549 |  |  | 54 |  |  | 549 |  |  | 54 |
Foreign government agency securities | — |  |  | — |  |  | 527 |  |  | 6 |  |  | 527 |  |  | 6 |
Non-agency commercial mortgage-backed securities | — |  |  | — |  |  | 109 |  |  | 12 |  |  | 109 |  |  | 12 |
Other | — |  |  | — |  |  | 18 |  |  | 3 |  |  | 18 |  |  | 3 |
Total (2) | $ | 255 |  |  | $ | — |  |  | $ | 81,230 |  |  | $ | 6,758 |  |  | $ | 81,485 |  |  | $ | 6,758 |
(1) Unrealized losses less than 12 months amounts were less than $500 thousand. (2) For purposes of this table, unrealized losses on AFS securities excludes the unallocated PLM fair value hedge basis adjustments of $9 million and $(47) million at June 30, 2025 and December 31, 2024, respectively. At June 30, 2025, substantially all rated securities in the investment portfolios were investment grade. U.S. agency mortgage-backed securities do not have explicit credit ratings; however, management considers these to be of the highest credit quality and rating given the guarantee of principal and interest by the U.S. government or U.S. government-sponsored enterprises. For a description of management’s quarterly evaluation of AFS securities in unrealized loss positions, see Item 8 – Note 2 in the 2024 Form 10-K. No amounts were recognized as credit loss expense and no securities were written down to fair value through earnings for the six months ended June 30, 2025 and the year ended December 31, 2024. None of the Company’s AFS securities held as of June 30, 2025 and December 31, 2024 had an allowance for credit losses. All HTM securities as of June 30, 2025 and December 31, 2024 were U.S. agency mortgage-backed securities and therefore had no allowance for credit losses because expected nonpayment of the amortized cost basis is zero. The Company had $388 million and $455 million of accrued interest for AFS and HTM securities as of June 30, 2025 and December 31, 2024, respectively. These amounts are excluded from the amortized cost basis and fair market value of AFS and HTM securities and included in other assets on the condensed consolidated balance sheets. There were no writeoffs of accrued interest receivable on AFS and HTM securities during the six months ended June 30, 2025, or for the year ended December 31, 2024. The following table presents the Company’s estimated effective duration, which reflects anticipated future payments, by category at June 30, 2025:
| In years
Estimated effective duration, exclusive of derivatives: |
AFS investment securities portfolio | 2.5
AFS and HTM investment securities portfolio | 4.0
Estimated effective duration, inclusive of derivatives (1): |
AFS investment securities portfolio | 2.0
AFS and HTM investment securities portfolio | 3.8
(1) See Note 11 for additional discussion of the Company’s derivatives. In the table below, mortgage-backed securities and other asset-backed securities have been allocated to maturity groupings based on final contractual maturities. As borrowers may have the right to call or prepay certain obligations underlying our investment securities, actual maturities may differ from the scheduled contractual maturities presented below. The maturities of AFS and HTM investment securities are as follows:
June 30, 2025 | Within 1 year |  | After 1 year through 5 years |  | After 5 years through 10 years |  | After 10 years |  | Total
Available for sale securities |  |  |  |  |  |  |  |  |
U.S. agency mortgage-backed securities | $ | 348 |  |  | $ | 8,449 |  |  | $ | 10,857 |  |  | $ | 26,636 |  |  | $ | 46,290 |
U.S. Treasury securities | 4,811 |  |  | 4,580 |  |  | — |  |  | — |  |  | 9,391 |
Corporate debt securities | 1,531 |  |  | 3,589 |  |  | 1,121 |  |  | — |  |  | 6,241 |
Asset-backed securities | 135 |  |  | 490 |  |  | 953 |  |  | 3,096 |  |  | 4,674 |
U.S. state and municipal securities | 2 |  |  | 221 |  |  | 324 |  |  | 10 |  |  | 557 |
Foreign government agency securities | 329 |  |  | — |  |  | — |  |  | — |  |  | 329 |
Non-agency commercial mortgage-backed securities | — |  |  | — |  |  | — |  |  | 111 |  |  | 111 |
Other | — |  |  | — |  |  | — |  |  | 19 |  |  | 19 |
Total fair value | $ | 7,156 |  |  | $ | 17,329 |  |  | $ | 13,255 |  |  | $ | 29,872 |  |  | $ | 67,612 |
Total amortized cost (1) | $ | 7,226 |  |  | $ | 18,351 |  |  | $ | 14,338 |  |  | $ | 32,680 |  |  | $ | 72,595 |
Held to maturity securities |  |  |  |  |  |  |  |  |
U.S. agency mortgage-backed securities | $ | 390 |  |  | $ | 16,952 |  |  | $ | 28,376 |  |  | $ | 84,283 |  |  | $ | 130,001 |
Total fair value | $ | 390 |  |  | $ | 16,952 |  |  | $ | 28,376 |  |  | $ | 84,283 |  |  | $ | 130,001 |
Total amortized cost | $ | 394 |  |  | $ | 17,507 |  |  | $ | 29,655 |  |  | $ | 92,128 |  |  | $ | 139,684 |
(1) For purposes of this table, the amortized cost of AFS securities excludes the unallocated PLM fair value hedge basis adjustments of $9 million at June 30, 2025. Proceeds and gross realized gains and losses from sales of AFS investment securities are as follows:
| Three Months Ended June 30, |  |  |  | Six Months Ended June 30,
| 2025 |  | 2024 |  |  |  |  |  | 2025 |  | 2024
Proceeds | $ | 2,584 |  |  | $ | 854 |  |  |  |  |  |  | $ | 4,205 |  |  | $ | 2,043 |
Gross realized gains | — |  |  | — |  |  |  |  |  |  | — |  |  | — |
Gross realized losses | 30 |  |  | 10 |  |  |  |  |  |  | 40 |  |  | 20 |

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