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Fair Values of Assets and Liabilities | 6 Months Ended
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Jun. 30, 2025
Fair Value Disclosures [Abstract] |
Fair Values of Assets and Liabilities | Fair Values of Assets and Liabilities Assets and Liabilities Measured at Fair Value on a Recurring Basis Schwab’s assets and liabilities measured at fair value on a recurring basis include: certain cash equivalents, certain investments segregated and on deposit for regulatory purposes, AFS securities, certain other assets, interest rate swaps, and certain accrued expenses and other liabilities. The Company uses the market approach to determine the fair value of assets and liabilities. When available, the Company uses quoted prices in active markets to measure the fair value of assets and liabilities. Quoted prices for investments in exchange-traded securities represent end-of-day close prices published by exchanges. Quoted prices for money market funds and other mutual funds represent reported net asset values. When utilizing market data and bid-ask spread, the Company uses the price within the bid-ask spread that best represents fair value. When quoted prices in active markets do not exist, the Company uses prices obtained from independent third-party pricing services to measure the fair value of investment assets, and we generally obtain prices from three independent third-party pricing sources for such assets recorded at fair value. Our primary independent pricing service provides prices for our fixed income investments such as commercial paper; certificates of deposit; U.S. government and agency securities; state and municipal securities; corporate debt securities; asset-backed securities; foreign government agency securities; and non-agency commercial mortgage-backed securities. Such prices are based on observable trades, broker/dealer quotes, and discounted cash flows that incorporate observable information such as yields for similar types of securities (a benchmark interest rate plus observable spreads) and weighted-average maturity for the same or similar “to-be-issued” securities. We compare the prices obtained from the primary independent pricing service to the prices obtained from the additional independent pricing services to determine if the price obtained from the primary independent pricing service is reasonable. Schwab does not adjust the prices received from independent third-party pricing services unless such prices are inconsistent with the definition of fair value and result in material differences in the amounts recorded. Liabilities measured at fair value on a recurring basis include interest rate swaps, securities sold but not yet purchased, and repurchase liabilities related to client-held fractional shares of equities, ETFs, and other securities, which are included in other assets on the condensed consolidated balance sheets. The fair values of securities sold but not yet purchased are based on quoted market prices or other observable market data. The Company has elected the fair value option pursuant to ASC 825 Financial Instruments for the repurchase liabilities to match the measurement and accounting of the related client-held fractional shares. The fair values of the repurchase liabilities are based on quoted market prices or other observable market data consistent with the related client-held fractional shares. Unrealized gains and losses on client-held fractional shares offset the unrealized gains and losses on the corresponding repurchase liabilities, resulting in no impact to the condensed consolidated statements of income. The Company’s liabilities to repurchase client-held fractional shares do not have credit risk, and, as a result, the Company has not recognized any gains or losses in the condensed consolidated statements of income or comprehensive income attributable to instrument-specific credit risk for these repurchase liabilities. The repurchase liabilities are included in accrued expenses and other liabilities on the condensed consolidated balance sheets. The fair values of interest rate swaps are based on market observable interest rate yield curves. Fair value measurements are priced considering the coupon rate of the fixed leg of the contract and the variable coupon rate on the floating leg of the contract. Valuation is based on both spot and forward rates on the swap yield curve. See Note 11 for additional information on the Company’s interest rate swaps. For a description of the fair value hierarchy and Schwab’s fair value methodologies, see Item 8 – Note 2 in the 2024 Form 10-K. The Company did not adjust prices received from the primary independent third-party pricing service at June 30, 2025 or December 31, 2024. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables present the fair value hierarchy for assets and liabilities measured at fair value on a recurring basis:
June 30, 2025 | Level 1 |  | Level 2 |  | Level 3 |  | Balance at Fair Value
Cash equivalents: |  |  |  |  |  |  |
Money market funds | $ | 12,921 |  |  | $ | — |  |  | $ | — |  |  | $ | 12,921 |
Total cash equivalents | 12,921 |  |  | — |  |  | — |  |  | 12,921 |
Investments segregated and on deposit for regulatory purposes: |  |  |  |  |  |  |
U.S. government securities | — |  |  | 23,576 |  |  | — |  |  | 23,576 |
Total investments segregated and on deposit for regulatory purposes | — |  |  | 23,576 |  |  | — |  |  | 23,576 |
Available for sale securities: |  |  |  |  |  |  |
U.S. agency mortgage-backed securities | — |  |  | 46,290 |  |  | — |  |  | 46,290 |
U.S. Treasury securities | — |  |  | 9,391 |  |  | — |  |  | 9,391 |
Corporate debt securities | — |  |  | 6,241 |  |  | — |  |  | 6,241 |
Asset-backed securities | — |  |  | 4,674 |  |  | — |  |  | 4,674 |
U.S. state and municipal securities | — |  |  | 557 |  |  | — |  |  | 557 |
Foreign government agency securities | — |  |  | 329 |  |  | — |  |  | 329 |
Non-agency commercial mortgage-backed securities | — |  |  | 111 |  |  | — |  |  | 111 |
Other | — |  |  | 19 |  |  | — |  |  | 19 |
Total available for sale securities | — |  |  | 67,612 |  |  | — |  |  | 67,612 |
Other assets: |  |  |  |  |  |  |
Other securities owned: |  |  |  |  |  |  |
Equity, corporate debt, and other securities | 1,486 |  |  | 80 |  |  | — |  |  | 1,566 |
Mutual funds and ETFs | 1,102 |  |  | — |  |  | — |  |  | 1,102 |
State and municipal debt obligations | — |  |  | 41 |  |  | — |  |  | 41 |
U.S. government securities | — |  |  | 19 |  |  | — |  |  | 19 |
Total other securities owned | 2,588 |  |  | 140 |  |  | — |  |  | 2,728 |
Total other assets | 2,588 |  |  | 140 |  |  | — |  |  | 2,728 |
Total assets | $ | 15,509 |  |  | $ | 91,328 |  |  | $ | — |  |  | $ | 106,837 |
Accrued expenses and other liabilities: |  |  |  |  |  |  |
Interest rate swaps | $ | — |  |  | $ | 1 |  |  | $ | — |  |  | $ | 1 |
Other | 2,388 |  |  | 34 |  |  | — |  |  | 2,422 |
Total accrued expenses and other liabilities | 2,388 |  |  | 35 |  |  | — |  |  | 2,423 |
Total liabilities | $ | 2,388 |  |  | $ | 35 |  |  | $ | — |  |  | $ | 2,423 |
December 31, 2024 | Level 1 |  | Level 2 |  | Level 3 |  | Balance at Fair Value
Cash equivalents: |  |  |  |  |  |  |
Money market funds | $ | 11,005 |  |  | $ | — |  |  | $ | — |  |  | $ | 11,005 |
Total cash equivalents | 11,005 |  |  | — |  |  | — |  |  | 11,005 |
Investments segregated and on deposit for regulatory purposes: |  |  |  |  |  |  |
U.S. government securities | — |  |  | 25,740 |  |  | — |  |  | 25,740 |
Total investments segregated and on deposit for regulatory purposes | — |  |  | 25,740 |  |  | — |  |  | 25,740 |
Available for sale securities: |  |  |  |  |  |  |
U.S. agency mortgage-backed securities | — |  |  | 51,833 |  |  | — |  |  | 51,833 |
U.S. Treasury securities | — |  |  | 14,469 |  |  | — |  |  | 14,469 |
Corporate debt securities | — |  |  | 9,579 |  |  | — |  |  | 9,579 |
Asset-backed securities | — |  |  | 5,910 |  |  | — |  |  | 5,910 |
U.S. state and municipal securities | — |  |  | 549 |  |  | — |  |  | 549 |
Foreign government agency securities | — |  |  | 527 |  |  | — |  |  | 527 |
Non-agency commercial mortgage-backed securities | — |  |  | 109 |  |  | — |  |  | 109 |
Other | — |  |  | 18 |  |  | — |  |  | 18 |
Total available for sale securities | — |  |  | 82,994 |  |  | — |  |  | 82,994 |
Other assets: |  |  |  |  |  |  |
Other securities owned: |  |  |  |  |  |  |
Equity, corporate debt, and other securities | 1,395 |  |  | 73 |  |  | — |  |  | 1,468 |
Mutual funds and ETFs | 1,019 |  |  | — |  |  | — |  |  | 1,019 |
State and municipal debt obligations | — |  |  | 38 |  |  | — |  |  | 38 |
U.S. government securities | — |  |  | 18 |  |  | — |  |  | 18 |
Total other securities owned | 2,414 |  |  | 129 |  |  | — |  |  | 2,543 |
Total other assets | 2,414 |  |  | 129 |  |  | — |  |  | 2,543 |
Total assets | $ | 13,419 |  |  | $ | 108,863 |  |  | $ | — |  |  | $ | 122,282 |
Accrued expenses and other liabilities: |  |  |  |  |  |  |
Other | $ | 2,161 |  |  | $ | 37 |  |  | $ | — |  |  | $ | 2,198 |
Total accrued expenses and other liabilities | 2,161 |  |  | 37 |  |  | — |  |  | 2,198 |
Total liabilities | $ | 2,161 |  |  | $ | 37 |  |  | $ | — |  |  | $ | 2,198 |
Fair Value of Other Financial Instruments The following tables present the fair value hierarchy for other financial instruments:
June 30, 2025 | Carrying Amount |  | Level 1 |  | Level 2 |  | Level 3 |  | Balance at Fair Value
Assets |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 19,274 |  |  | $ | 19,274 |  |  | $ | — |  |  | $ | — |  |  | $ | 19,274 |
Cash and investments segregated and on deposit for regulatory purposes | 21,899 |  |  | 2,429 |  |  | 19,470 |  |  | — |  |  | 21,899 |
Receivables from brokers, dealers, and clearing organizations | 4,304 |  |  | — |  |  | 4,304 |  |  | — |  |  | 4,304 |
Receivables from brokerage clients — net | 82,724 |  |  | — |  |  | 82,724 |  |  | — |  |  | 82,724 |
Held to maturity securities: |  |  |  |  |  |  |  |  |
U.S. agency mortgage-backed securities | 139,684 |  |  | — |  |  | 130,001 |  |  | — |  |  | 130,001 |
Total held to maturity securities | 139,684 |  |  | — |  |  | 130,001 |  |  | — |  |  | 130,001 |
Bank loans — net: |  |  |  |  |  |  |  |  |
First Mortgages | 28,527 |  |  | — |  |  | 26,234 |  |  | — |  |  | 26,234 |
HELOCs | 422 |  |  | — |  |  | 443 |  |  | — |  |  | 443 |
Pledged asset lines | 21,038 |  |  | — |  |  | 21,038 |  |  | — |  |  | 21,038 |
Other | 418 |  |  | — |  |  | 418 |  |  | — |  |  | 418 |
Total bank loans — net | 50,405 |  |  | — |  |  | 48,133 |  |  | — |  |  | 48,133 |
Other assets | 1,067 |  |  | — |  |  | 1,067 |  |  | — |  |  | 1,067 |
Liabilities |  |  |  |  |  |  |  |  |
Bank deposits | $ | 233,058 |  |  | $ | — |  |  | $ | 233,058 |  |  | $ | — |  |  | $ | 233,058 |
Payables to brokers, dealers, and clearing organizations | 18,584 |  |  | — |  |  | 18,584 |  |  | — |  |  | 18,584 |
Payables to brokerage clients | 109,355 |  |  | — |  |  | 109,355 |  |  | — |  |  | 109,355 |
Accrued expenses and other liabilities | 1,346 |  |  | — |  |  | 1,346 |  |  | — |  |  | 1,346 |
Other short-term borrowings | 8,472 |  |  | — |  |  | 8,472 |  |  | — |  |  | 8,472 |
Federal Home Loan Bank borrowings | 9,000 |  |  | — |  |  | 9,000 |  |  | — |  |  | 9,000 |
Long-term debt | 20,171 |  |  | — |  |  | 19,859 |  |  | — |  |  | 19,859 |
December 31, 2024 | Carrying Amount |  | Level 1 |  | Level 2 |  | Level 3 |  | Balance at Fair Value
Assets |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 31,078 |  |  | $ | 31,078 |  |  | $ | — |  |  | $ | — |  |  | $ | 31,078 |
Cash and investments segregated and on deposit for regulatory purposes | 12,416 |  |  | 2,401 |  |  | 10,015 |  |  | — |  |  | 12,416 |
Receivables from brokers, dealers, and clearing organizations | 2,440 |  |  | — |  |  | 2,440 |  |  | — |  |  | 2,440 |
Receivables from brokerage clients — net | 85,343 |  |  | — |  |  | 85,343 |  |  | — |  |  | 85,343 |
Held to maturity securities: |  |  |  |  |  |  |  |  |
U.S. agency mortgage-backed securities | 146,453 |  |  | — |  |  | 132,605 |  |  | — |  |  | 132,605 |
Total held to maturity securities | 146,453 |  |  | — |  |  | 132,605 |  |  | — |  |  | 132,605 |
Bank loans — net: |  |  |  |  |  |  |  |  |
First Mortgages | 27,375 |  |  | — |  |  | 24,336 |  |  | — |  |  | 24,336 |
HELOCs | 423 |  |  | — |  |  | 441 |  |  | — |  |  | 441 |
Pledged asset lines | 17,024 |  |  | — |  |  | 17,024 |  |  | — |  |  | 17,024 |
Other | 393 |  |  | — |  |  | 393 |  |  | — |  |  | 393 |
Total bank loans — net | 45,215 |  |  | — |  |  | 42,194 |  |  | — |  |  | 42,194 |
Other assets | 1,405 |  |  | — |  |  | 1,405 |  |  | — |  |  | 1,405 |
Liabilities |  |  |  |  |  |  |  |  |
Bank deposits | $ | 259,121 |  |  | $ | — |  |  | $ | 259,121 |  |  | $ | — |  |  | $ | 259,121 |
Payables to brokers, dealers, and clearing organizations | 13,336 |  |  | — |  |  | 13,336 |  |  | — |  |  | 13,336 |
Payables to brokerage clients | 101,559 |  |  | — |  |  | 101,559 |  |  | — |  |  | 101,559 |
Accrued expenses and other liabilities | 1,076 |  |  | — |  |  | 1,076 |  |  | — |  |  | 1,076 |
Other short-term borrowings | 5,999 |  |  | — |  |  | 5,999 |  |  | — |  |  | 5,999 |
Federal Home Loan Bank borrowings | 16,700 |  |  | — |  |  | 16,700 |  |  | — |  |  | 16,700 |
Long-term debt | 22,379 |  |  | — |  |  | 21,621 |  |  | — |  |  | 21,621 |

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
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