Investment Securities

The amortized cost, gross unrealized gains and losses, and fair value of AFS and HTM securities are as follows:



March 31, 2019	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale securities
U.S. agency mortgage-backed securities	$	31,010	$	154	$	72	$	31,092
U.S. Treasury securities	10,343		1		69		10,275
Asset-backed securities ⁽¹⁾	8,423		22		6		8,439
Corporate debt securities ⁽²⁾	6,499		37		4		6,532
Certificates of deposit	3,138		8		—		3,146
U.S. agency notes	250		—		1		249
Commercial paper ^(2,3)	209		—		—		209
Foreign government agency securities	50		—		—		50
Non-agency commercial mortgage-backed securities	13		—		—		13
Total available for sale securities	$	59,935	$	222	$	152	$	60,005
Held to maturity securities
U.S. agency mortgage-backed securities	$	106,532	$	536	$	1,146	$	105,922
Asset-backed securities ⁽¹⁾	18,465		67		27		18,505
Corporate debt securities ⁽²⁾	4,479		12		14		4,477
U.S. state and municipal securities	1,313		69		—		1,382
Non-agency commercial mortgage-backed securities	1,145		10		5		1,150
U.S. Treasury securities	223		—		2		221
Certificates of deposit	200		1		—		201
Foreign government agency securities	50		—		1		49
Other	13		—		—		13
Total held to maturity securities	$	132,420	$	695	$	1,195	$	131,920



December 31, 2018
Available for sale securities
U.S. agency mortgage-backed securities	$	25,594	$	44	$	82	$	25,556
U.S. Treasury securities	18,410		—		108		18,302
Asset-backed securities ⁽¹⁾	10,086		14		15		10,085
Corporate debt securities ⁽²⁾	7,477		10		20		7,467
Certificates of deposit	3,682		4		1		3,685
U.S. agency notes	900		—		2		898
Commercial paper ^(2,3)	522		—		—		522
Foreign government agency securities	50		—		1		49
Non-agency commercial mortgage-backed securities	14		—		—		14
Total available for sale securities	$	66,735	$	72	$	229	$	66,578
Held to maturity securities
U.S. agency mortgage-backed securities	$	118,064	$	217	$	2,188	$	116,093
Asset-backed securities ⁽¹⁾	18,502		83		39		18,546
Corporate debt securities ⁽²⁾	4,477		2		47		4,432
U.S. state and municipal securities	1,327		24		3		1,348
Non-agency commercial mortgage-backed securities	1,156		3		17		1,142
U.S. Treasury securities	223		—		6		217
Certificates of deposit	200		1		—		201
Foreign government agency securities	50		—		1		49
Other	10		—		—		10
Total held to maturity securities	$	144,009	$	330	$	2,301	$	142,038

⁽¹⁾Approximately 39% and 36% of asset-backed securities held as of March 31, 2019 and December 31, 2018, respectively, were Federal Family Education Loan Program Asset-Backed Securities. Asset-backed securities collateralized by credit card receivables represented approximately 41% and 42% of the asset-backed securities held as of March 31, 2019 and December 31, 2018, respectively.

⁽²⁾As of March 31, 2019 and December 31, 2018, approximately 25% and 26%, respectively, of the total AFS and HTM investments in corporate debt securities and commercial paper were issued by institutions in the financial services industry. Approximately 14% and 18% of the holdings of these securities were issued by institutions in the information technology industry as of March 31, 2019 and December 31, 2018, respectively.

⁽³⁾ Included in cash and cash equivalents on the condensed consolidated balance sheets, but excluded from this table is $4.3 billion and $4.9 billion of AFS commercial paper as of March 31, 2019 and December 31, 2018, respectively. These holdings have maturities of three months or less and an aggregate market value equal to amortized cost.

On January 1, 2019 the Company transferred certain U.S. agency mortgage-backed securities with a fair value of $8.8 billion from the HTM category to the AFS category as permitted by ASU 2017-12. For additional information on the transfer, see Notes 2 and 14.

At March 31, 2019, our banking subsidiaries had pledged securities with a fair value of $27.9 billion as collateral to secure borrowing capacity on secured credit facilities with the FHLB (see Note 8). Certain banking subsidiaries also pledge investment securities as collateral to secure borrowing capacity at the Federal Reserve Bank discount window, and had pledged securities with a fair value of $8.4 billion as collateral for this facility at March 31, 2019. CSB also pledges securities issued by federal agencies to secure certain trust deposits. The fair value of these pledged securities was $916 million at March 31, 2019.

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
March 31, 2019	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available for sale securities
U.S. agency mortgage-backed securities	$	9,897	$	40	$	5,204	$	32	$	15,101	$	72
U.S. Treasury securities	1,139		1		8,509		68		9,648		69
Asset-backed securities	1,586		1		761		5		2,347		6
Corporate debt securities	802		2		544		2		1,346		4
U.S. agency notes	—		—		249		1		249		1
Total	$	13,424	$	44	$	15,267	$	108	$	28,691	$	152
Held to maturity securities
U.S. agency mortgage-backed securities	$	6,515	$	28	$	64,563	$	1,118	$	71,078	$	1,146
Asset-backed securities	7,285		25		376		2		7,661		27
Corporate debt securities	743		4		2,383		10		3,126		14
Non-agency commercial mortgage-backed securities	—		—		697		5		697		5
U.S. Treasury securities	—		—		221		2		221		2
Foreign government agency securities	—		—		50		1		50		1
Total	$	14,543	$	57	$	68,290	$	1,138	$	82,833	$	1,195
Total securities with unrealized losses ⁽¹⁾	$	27,967	$	101	$	83,557	$	1,246	$	111,524	$	1,347



December 31, 2018
Available for sale securities
U.S. agency mortgage-backed securities	$	9,529	$	32	$	4,257	$	50	$	13,786	$	82
U.S. Treasury securities	4,951		6		7,037		102		11,988		108
Asset-backed securities	4,050		9		837		6		4,887		15
Corporate debt securities	3,561		19		254		1		3,815		20
Certificates of deposit	1,217		1		150		—		1,367		1
U.S. agency notes	195		—		304		2		499		2
Foreign government agency securities	—		—		49		1		49		1
Total	$	23,503	$	67	$	12,888	$	162	$	36,391	$	229
Held to maturity securities
U.S. agency mortgage-backed securities	$	29,263	$	222	$	56,435	$	1,966	$	85,698	$	2,188
Asset-backed securities	6,795		35		376		4		7,171		39
Corporate debt securities	2,909		29		1,066		18		3,975		47
U.S. state and municipal securities	77		2		18		1		95		3
Non-agency commercial mortgage-backed securities	283		2		632		15		915		17
U.S. Treasury securities	—		—		218		6		218		6
Foreign government agency securities	—		—		49		1		49		1
Total	$	39,327	$	290	$	58,794	$	2,011	$	98,121	$	2,301
Total securities with unrealized losses ⁽²⁾	$	62,830	$	357	$	71,682	$	2,173	$	134,512	$	2,530

⁽¹⁾The number of investment positions with unrealized losses totaled 412 for AFS securities and 1,302 for HTM securities.

⁽²⁾The number of investment positions with unrealized losses totaled 441 for AFS securities and 1,524 for HTM securities.

At March 31, 2019, 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.

Management evaluates whether investment securities are other-than-temporarily impaired (OTTI) on a quarterly basis as described in Note 2 in the 2018 Form 10-K. No amounts were recognized as OTTI in earnings or other comprehensive income during the three months ended March 31, 2019 or the year ended December 31, 2018. As of March 31, 2019 and December 31, 2018, Schwab did not hold any securities on which OTTI was previously recognized.

In the table below, mortgage-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 securities are as follows:



March 31, 2019	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	$	96	$	2,434	$	12,315	$	16,247	$	31,092
U.S. Treasury securities	6,289		3,986		—		—		10,275
Asset-backed securities	5		7,284		841		309		8,439
Corporate debt securities	1,471		5,061		—		—		6,532
Certificates of deposit	1,439		1,707		—		—		3,146
U.S. agency notes	249		—		—		—		249
Commercial paper	209		—		—		—		209
Foreign government agency securities	—		50		—		—		50
Non-agency commercial mortgage-backed securities	—		—		—		13		13
Total fair value	$	9,758	$	20,522	$	13,156	$	16,569	$	60,005
Total amortized cost	$	9,773	$	20,516	$	13,179	$	16,467	$	59,935
Held to maturity securities
U.S. agency mortgage-backed securities	$	205	$	15,176	$	32,437	$	58,104	$	105,922
Asset-backed securities	—		2,362		8,896		7,247		18,505
Corporate debt securities	705		3,180		592		—		4,477
U.S. state and municipal securities	—		92		345		945		1,382
Non-agency commercial mortgage-backed securities	—		362		—		788		1,150
U.S. Treasury securities	—		—		221		—		221
Certificates of deposit	201		—		—		—		201
Foreign government agency securities	—		49		—		—		49
Other	—		—		—		13		13
Total fair value	$	1,111	$	21,221	$	42,491	$	67,097	$	131,920
Total amortized cost	$	1,114	$	21,212	$	42,433	$	67,661	$	132,420

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



	Three Months Ended March 31,
	Three Months Ended March 31,
	2019		2018
Proceeds	$	10,652	$	—
Gross realized gains	3		—
Gross realized losses	2		—