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Investment Securities
 9 Months Ended
Sep. 30, 2017
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
Investment Securities
The amortized cost, gross unrealized gains and losses, and fair value of AFS and HTM securities are as follows:
September 30, 2017
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Available for sale securities:
 
 
 
 
 
 
 
 
U.S. agency mortgage-backed securities
 
$
19,717

 
$
54

 
$
25

 
$
19,746

Asset-backed securities
 
9,960

 
40

 
4

 
9,996

Corporate debt securities
 
6,449

 
20

 
1

 
6,468

U.S. Treasury securities
 
7,741

 
7

 
49

 
7,699

Certificates of deposit
 
1,840

 
3

 
—

 
1,843

U.S. agency notes
 
1,913

 
—

 
6

 
1,907

Commercial paper
 
312

 
—

 
—

 
312

Non-agency commercial mortgage-backed securities
 
41

 
—

 
—

 
41

Foreign government agency securities
 
50

 
—

 
—

 
50

     Total available for sale securities
 
$
48,023

 
$
124

 
$
85

 
$
48,062

Held to maturity securities:
 
 
 
 
 
 
 
 
U.S. agency mortgage-backed securities
 
$
96,045

 
$
492

 
$
721

 
$
95,816

Non-agency commercial mortgage-backed securities
 
995

 
13

 
2

 
1,006

Asset-backed securities
 
12,237

 
100

 
1

 
12,336

Corporate debt securities
 
3,377

 
26

 
—

 
3,403

U.S. Treasury securities
 
223

 
—

 
1

 
222

U.S. state and municipal securities
 
1,249

 
50

 
—

 
1,299

Certificates of deposit
 
200

 
—

 
—

 
200

Foreign government agency securities
 
50

 
—

 
—

 
50

     Total held to maturity securities
 
$
114,376

 
$
681

 
$
725

 
$
114,332

December 31, 2016
 
 
 
 
 
 
 
 
Available for sale securities:
 
 
 
 
 
  
 
 
U.S. agency mortgage-backed securities
 
$
33,167

 
$
120

 
$
92

 
$
33,195

Asset-backed securities
 
20,520

 
29

 
214

 
20,335

Corporate debt securities
 
9,850

 
20

 
18

 
9,852

U.S. Treasury securities
 
8,679

 
3

 
59

 
8,623

Certificates of deposit
 
2,070

 
2

 
1

 
2,071

U.S. agency notes
 
1,915

 
—

 
8

 
1,907

U.S. state and municipal securities
 
1,167

 
2

 
46

 
1,123

Commercial paper
 
214

 
—

 
—

 
214

Non-agency commercial mortgage-backed securities
 
45

 
—

 
—

 
45

     Total available for sale securities
 
$
77,627

 
$
176

 
$
438

 
$
77,365

Held to maturity securities:
 
 
 
 
 
 
 
 
U.S. agency mortgage-backed securities
 
$
72,439

 
$
324

 
$
1,086

 
$
71,677

Non-agency commercial mortgage-backed securities
 
997

 
11

 
4

 
1,004

Asset-backed securities
 
941

 
—

 
—

 
941

Corporate debt securities
 
436

 
—

 
—

 
436

U.S. Treasury securities
 
223

 
—

 
4

 
219

Commercial paper
 
99

 
—

 
—

 
99

U.S. state and municipal securities
 
68

 
1

 
1

 
68

     Total held to maturity securities
 
$
75,203

 
$
336

 
$
1,095

 
$
74,444


The increase in the HTM portfolio at September 30, 2017 compared to December 31, 2016 was primarily attributable to the transfer of $24.7 billion of investment securities from the AFS category to the HTM category during the first quarter of 2017. These securities had a total net unrealized loss of $227 million before income tax in AOCI on the date of transfer. The transfer was made to mitigate the potential volatility in regulatory capital from changes in market values in the AFS securities portfolio and the related impact to AOCI once the Company crosses $250 billion in consolidated assets. The year after the Company surpasses $250 billion in consolidated assets, it can no longer exclude AOCI from regulatory capital. The transfer included U.S. agency mortgage-backed securities, asset-backed securities, corporate debt securities, and U.S. state and municipal securities. The unrealized holding gains and losses on the date of transfer are reported as a separate component of AOCI and as an adjustment to the purchase premium and discount on the securities transferred. The separate component of AOCI will be amortized or accreted into interest income over the remaining life of the securities transferred, offsetting the revised premium or discount amortization or accretion on the transferred assets.

Schwab Bank pledges securities issued by federal agencies to secure certain trust deposits. The fair value of these pledged securities was $936 million at September 30, 2017.

A summary of securities with unrealized losses, aggregated by category and period of continuous unrealized loss, is as follows:
 
Less than
 
12 months
 
 
 
 
 
12 months
 
or longer
 
Total
September 30, 2017
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Available for sale securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. agency mortgage-backed securities
$
3,254

 
$
6

 
$
2,805

 
$
19

 
$
6,059

 
$
25

Asset-backed securities
638

 
—

 
578

 
4

 
1,216

 
4

Corporate debt securities
990

 
1

 
153

 
—

 
1,143

 
1

U.S. Treasury securities
6,421

 
49

 
—

 
—

 
6,421

 
49

U.S. agency notes
1,409

 
5

 
498

 
1

 
1,907

 
6

Total
$
12,712

 
$
61

 
$
4,034

 
$
24

 
$
16,746

 
$
85

Held to maturity securities:
 

 
 

 
 

 
 

 
 

 
 

U.S. agency mortgage-backed securities
$
2,386

 
$
90

 
$
47,136

 
$
631

 
$
49,522

 
$
721

Non-agency commercial mortgage-backed securities
—

 
—

 
491

 
2

 
491

 
2

Asset-backed securities
409

 
—

 
672

 
1

 
1,081

 
1

U.S. Treasury securities
—

 
—

 
222

 
1

 
222

 
1

Total
$
2,795

 
$
90

 
$
48,521

 
$
635

 
$
51,316

 
$
725

Total securities with unrealized losses (1)
$
15,507

 
$
151

 
$
52,555

 
$
659

 
$
68,062

 
$
810

December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
Available for sale securities:
 
 
 
 
  
 
 
 
 
 
 
U.S. agency mortgage-backed securities
$
14,816

 
$
69

 
$
2,931

 
$
23

 
$
17,747

 
$
92

Asset-backed securities
1,670

 
13

 
9,237

 
201

 
10,907

 
214

Corporate debt securities
2,407

 
17

 
653

 
1

 
3,060

 
18

U.S. Treasury securities
6,926

 
59

 
—

 
—

 
6,926

 
59

Certificates of deposit
474

 
—

 
100

 
1

 
574

 
1

U.S. agency notes
1,907

 
8

 
—

 
—

 
1,907

 
8

U.S. state and municipal securities
956

 
46

 
—

 
—

 
956

 
46

Total
$
29,156

 
$
212

 
$
12,921

 
$
226

 
$
42,077

 
$
438

Held to maturity securities:
 

 
 

 
 

 
 

 
 

 
 

U.S. agency mortgage-backed securities
$
51,361

 
$
1,086

 
$
—

 
$
—

 
$
51,361

 
$
1,086

Non-agency commercial mortgage-backed securities
591

 
4

 
—

 
—

 
591

 
4

U.S. Treasury securities
219

 
4

 
—

 
—

 
219

 
4

U.S. state and municipal securities
14

 
1

 
—

 
—

 
14

 
1

Total
$
52,185

 
$
1,095

 
$
—

 
$
—

 
$
52,185

 
$
1,095

Total securities with unrealized losses (2)
$
81,341

 
$
1,307

 
$
12,921

 
$
226

 
$
94,262

 
$
1,533

(1) The number of investment positions with unrealized losses totaled 212 for AFS securities and 698 for HTM securities.
(2) The number of investment positions with unrealized losses totaled 627 for AFS securities and 612 for HTM securities.

At September 30, 2017, substantially all securities in the investment portfolios were rated 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-sponsored enterprises.
Management evaluates whether investment securities are OTTI on a quarterly basis as described in Note 2 in the 2016
Form 10-K.

The maturities of AFS and HTM securities are as follows:
September 30, 2017
 
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 (1)
 
$
83

 
$
2,390

 
$
6,646

 
$
10,627

 
$
19,746

Asset-backed securities
 
—

 
8,096

 
1,243

 
657

 
9,996

Corporate debt securities
 
3,381

 
3,087

 
—

 
—

 
6,468

U.S. Treasury securities
 
2,069

 
5,630

 
—

 
—

 
7,699

Certificates of deposit
 
876

 
967

 
—

 
—

 
1,843

U.S. agency notes
 
847

 
1,060

 
—

 
—

 
1,907

Commercial paper
 
312

 
—

 
—

 
—

 
312

Non-agency commercial mortgage-backed securities (1)
 
—

 
—

 
—

 
41

 
41

Foreign government agency securities
 
—

 
50

 
—

 
—

 
50

Total fair value
 
$
7,568

 
$
21,280

 
$
7,889

 
$
11,325

 
$
48,062

Total amortized cost
 
$
7,563

 
$
21,278

 
$
7,881

 
$
11,301

 
$
48,023

Held to maturity securities:
 
 
 
 
 
 
 
 
 
 
U.S. agency mortgage-backed securities (1)
 
$
303

 
$
11,401

 
$
29,606

 
$
54,506

 
$
95,816

Non-agency commercial mortgage-backed securities (1)
 
—

 
—

 
364

 
642

 
1,006

Asset-backed securities
 
—

 
1,016

 
5,364

 
5,956

 
12,336

Corporate debt securities
 
250

 
3,153

 
—

 
—

 
3,403

U.S. Treasury securities
 
—

 
—

 
222

 
—

 
222

U.S. state and municipal securities
 
—

 
—

 
98

 
1,201

 
1,299

Certificates of deposit
 
—

 
200

 
—

 
—

 
200

Foreign government agency securities
 
—

 
50

 
—

 
—

 
50

Total fair value
 
$
553

 
$
15,820

 
$
35,654

 
$
62,305

 
$
114,332

Total amortized cost
 
$
553

 
$
15,672

 
$
35,558

 
$
62,593

 
$
114,376

(1) Mortgage-backed securities have been allocated to maturity groupings based on final contractual maturities. Actual maturities will differ from final contractual maturities because borrowers on a certain portion of loans underlying these securities have the right to prepay their obligations.

Proceeds and gross realized gains and losses from sales of AFS securities are as follows:

 
Three Months Ended
September 30,
Nine Months Ended
September 30,

 

 
2017
 
2016
2017
 
2016
Proceeds
 
$
288

 
$
571

$
5,773

 
$
4,645

Gross realized gains
 
—

 
—

7

 
3

Gross realized losses
 
—

 
—

—

 
—