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Fair Values of Assets and Liabilities
 9 Months Ended
Sep. 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 September 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:
September 30, 2025Level 1Level 2Level 3Balance at
Fair Value
Cash equivalents:
Money market funds$10,954 $— $— $10,954 
Total cash equivalents10,954 — — 10,954 
Investments segregated and on deposit for regulatory purposes:
U.S. government securities— 22,910 — 22,910 
Total investments segregated and on deposit for regulatory purposes— 22,910 — 22,910 
Available for sale securities:
U.S. agency mortgage-backed securities— 44,456 — 44,456 
U.S. Treasury securities— 7,786 — 7,786 
Corporate debt securities— 5,091 — 5,091 
Asset-backed securities— 4,281 — 4,281 
U.S. state and municipal securities— 562 — 562 
Non-agency commercial mortgage-backed securities— 113 — 113 
Other— 19 — 19 
Total available for sale securities— 62,308 — 62,308 
Other assets:
Other securities owned:
Equity, corporate debt, and other securities1,637 106 — 1,743 
Mutual funds and ETFs1,219 — — 1,219 
State and municipal debt obligations— 38 — 38 
U.S. government securities— 13 — 13 
Total other securities owned2,856 157 — 3,013 
Total other assets2,856 157 — 3,013 
Total assets$13,810 $85,375 $— $99,185 
Accrued expenses and other liabilities:
Other$2,647 $35 $— $2,682 
Total accrued expenses and other liabilities2,647 35 — 2,682 
Total liabilities$2,647 $35 $— $2,682 
December 31, 2024Level 1Level 2Level 3Balance at
Fair Value
Cash equivalents:
Money market funds$11,005 $— $— $11,005 
Total cash equivalents11,005 — — 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 securities1,395 73 — 1,468 
Mutual funds and ETFs1,019 — — 1,019 
State and municipal debt obligations— 38 — 38 
U.S. government securities— 18 — 18 
Total other securities owned2,414 129 — 2,543 
Total other assets2,414 129 — 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 liabilities2,161 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:
September 30, 2025Carrying
Amount		Level 1Level 2Level 3Balance at
Fair Value
Assets     
Cash and cash equivalents$19,618 $19,618 $— $— $19,618 
Cash and investments segregated and on deposit for
  regulatory purposes		24,729 2,594 22,135 — 24,729 
Receivables from brokers, dealers, and clearing organizations4,728 — 4,728 — 4,728 
Receivables from brokerage clients — net93,754 — 93,754 — 93,754 
Held to maturity securities:  
U.S. agency mortgage-backed securities136,693 — 128,259 — 128,259 
Total held to maturity securities136,693 — 128,259 — 128,259 
Bank loans — net:     
First Mortgages29,346 — 27,134 — 27,134 
HELOCs420 — 438 — 438 
Pledged asset lines23,390 — 23,390 — 23,390 
Other414 — 413 — 413 
Total bank loans — net53,570 — 51,375 — 51,375 
Other assets723 — 723 — 723 
Liabilities     
Bank deposits$239,057 $— $239,057 $— $239,057 
Payables to brokers, dealers, and clearing organizations22,407 — 22,407 — 22,407 
Payables to brokerage clients115,397 — 115,397 — 115,397 
Accrued expenses and other liabilities1,359 — 1,359 — 1,359 
Other short-term borrowings6,541 — 6,541 — 6,541 
Federal Home Loan Bank borrowings850 — 850 — 850 
Long-term debt20,169 — 20,002 — 20,002 
December 31, 2024Carrying
Amount		Level 1Level 2Level 3Balance 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 organizations2,440 — 2,440 — 2,440 
Receivables from brokerage clients — net85,343 — 85,343 — 85,343 
Held to maturity securities:    
U.S. agency mortgage-backed securities146,453 — 132,605 — 132,605 
Total held to maturity securities146,453 — 132,605 — 132,605 
Bank loans — net:     
First Mortgages27,375 — 24,336 — 24,336 
HELOCs423 — 441 — 441 
Pledged asset lines17,024 — 17,024 — 17,024 
Other393 — 393 — 393 
Total bank loans — net45,215 — 42,194 — 42,194 
Other assets1,405 — 1,405 — 1,405 
Liabilities     
Bank deposits$259,121 $— $259,121 $— $259,121 
Payables to brokers, dealers, and clearing organizations13,336 — 13,336 — 13,336 
Payables to brokerage clients101,559 — 101,559 — 101,559 
Accrued expenses and other liabilities1,076 — 1,076 — 1,076 
Other short-term borrowings5,999 — 5,999 — 5,999 
Federal Home Loan Bank borrowings16,700 — 16,700 — 16,700 
Long-term debt22,379 — 21,621 — 21,621