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Investment Securities
 9 Months Ended
Sep. 30, 2019
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, 2019
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Available for sale securities
 
 
 
 
 
 
 
 
U.S. agency mortgage-backed securities
 
$
40,179

 
$
299

 
$
47

 
$
40,431

U.S. Treasury securities
 
5,034

 
3

 
10

 
5,027

Asset-backed securities (1)
 
4,773

 
35

 
7

 
4,801

Corporate debt securities (2)
 
4,630

 
57

 
1

 
4,686

Certificates of deposit
 
1,000

 
4

 
—

 
1,004

Commercial paper (2,3)
 
520

 
1

 
—

 
521

Non-agency commercial mortgage-backed securities
 
13

 
—

 
—

 
13

Total available for sale securities
 
$
56,149

 
$
399

 
$
65

 
$
56,483

Held to maturity securities
 
 
 
 
 
 
 
 
U.S. agency mortgage-backed securities
 
$
114,276

 
$
1,974

 
$
238

 
$
116,012

Asset-backed securities (1)
 
18,323

 
74

 
38

 
18,359

Corporate debt securities (2)
 
4,659

 
58

 
2

 
4,715

U.S. state and municipal securities
 
1,306

 
107

 
—

 
1,413

Non-agency commercial mortgage-backed securities
 
1,136

 
28

 
—

 
1,164

U.S. Treasury securities
 
224

 
6

 
—

 
230

Certificates of deposit
 
200

 
—

 
—

 
200

Foreign government agency securities
 
50

 
—

 
—

 
50

Other
 
20

 
—

 
—

 
20

Total held to maturity securities
 
$
140,194

 
$
2,247

 
$
278

 
$
142,163

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 43% and 36% of asset-backed securities held as of September 30, 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 42% of the asset-backed securities held as of September 30, 2019 and December 31, 2018.
(2) As of September 30, 2019 and December 31, 2018, approximately 35% 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 18% of the holdings of these securities were issued by institutions in the information technology industry as of September 30, 2019 and December 31, 2018.
(3) Included in cash and cash equivalents on the condensed consolidated balance sheets, but excluded from this table is $0.9 billion and $4.9 billion of AFS commercial paper as of September 30, 2019 and December 31, 2018, respectively. These holdings have maturities of three months or less at the time of acquisition 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 September 30, 2019, our banking subsidiaries had pledged securities with a fair value of $26.8 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 $8.3 billion as collateral for this facility at September 30, 2019. CSB also pledges securities issued by federal agencies to secure certain trust deposits. The fair value of these pledged securities was $918 million at September 30, 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
 
 
 
September 30, 2019
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Available for sale securities
 
 
 
 
 
 
 
 
 
 
 
U.S. agency mortgage-backed securities
$
12,063

 
$
24

 
$
6,317

 
$
23

 
$
18,380

 
$
47

U.S. Treasury securities
377

 
—

 
3,161

 
10

 
3,538

 
10

Asset-backed securities
763

 
1

 
398

 
6

 
1,161

 
7

Corporate debt securities
149

 
1

 
499

 
—

 
648

 
1

Total
$
13,352

 
$
26

 
$
10,375

 
$
39

 
$
23,727

 
$
65

Held to maturity securities
 

 
 

 
 

 
 

 
 

 
 

U.S. agency mortgage-backed securities
$
11,838

 
$
37

 
$
20,897

 
$
201

 
$
32,735

 
$
238

Asset-backed securities
7,638

 
34

 
556

 
4

 
8,194

 
38

Corporate debt securities
416

 
1

 
354

 
1

 
770

 
2

Total
$
19,892

 
$
72

 
$
21,807

 
$
206

 
$
41,699

 
$
278

Total securities with unrealized losses (1)
$
33,244

 
$
98

 
$
32,182

 
$
245

 
$
65,426

 
$
343

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 343 for AFS securities and 625 for HTM securities.
(2) The number of investment positions with unrealized losses totaled 441 for AFS securities and 1,524 for HTM securities.

At September 30, 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 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 nine months ended September 30, 2019 or the year ended December 31, 2018. As of September 30, 2019 and December 31, 2018, Schwab did not hold any securities on which OTTI was previously recognized.

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 securities are as follows:
September 30, 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
$
51

 
$
1,909

 
$
11,061

 
$
27,410

 
$
40,431

U.S. Treasury securities
3,541

 
1,486

 
—

 
—

 
5,027

Asset-backed securities
35

 
3,752

 
794

 
220

 
4,801

Corporate debt securities
1,100

 
3,415

 
171

 
—

 
4,686

Certificates of deposit
501

 
503

 
—

 
—

 
1,004

Commercial paper
521

 
—

 
—

 
—

 
521

Non-agency commercial mortgage-backed securities
—

 
—

 
—

 
13

 
13

Total fair value
$
5,749

 
$
11,065

 
$
12,026

 
$
27,643

 
$
56,483

Total amortized cost
$
5,743

 
$
10,994

 
$
11,996

 
$
27,416

 
$
56,149

Held to maturity securities
 
 
 
 
 
 
 
 
 
U.S. agency mortgage-backed securities
$
663

 
$
15,472

 
$
35,048

 
$
64,829

 
$
116,012

Asset-backed securities
—

 
3,227

 
7,940

 
7,192

 
18,359

Corporate debt securities
778

 
3,079

 
858

 
—

 
4,715

U.S. state and municipal securities
—

 
99

 
452

 
862

 
1,413

Non-agency commercial mortgage-backed securities
—

 
367

 
—

 
797

 
1,164

U.S. Treasury securities
—

 
—

 
230

 
—

 
230

Certificates of deposit
200

 
—

 
—

 
—

 
200

Foreign government agency securities
—

 
50

 
—

 
—

 
50

Other
—

 
—

 
—

 
20

 
20

Total fair value
$
1,641

 
$
22,294

 
$
44,528

 
$
73,700

 
$
142,163

Total amortized cost
$
1,637

 
$
21,989

 
$
43,368

 
$
73,200

 
$
140,194



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,
 
 
 
2019
 
2018
 
2019
 
2018
Proceeds
$
5,436

 
$
—

 
$
21,710

 
$
115

Gross realized gains
5

 
—

 
15

 
—

Gross realized losses
4

 
—

 
10

 
—