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Investment Securities
 6 Months Ended
Jun. 30, 2020
Investments, Debt and Equity Securities [Abstract]  
Investment Securities Investment Securities

The amortized cost, gross unrealized gains and losses, and fair value of the Company’s investment securities are as follows:
June 30, 2020
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Available for sale securities
 
 
 
 
 
 
 
 
U.S. agency mortgage-backed securities
 
$
230,102

 
$
7,162

 
$
177

 
$
237,087

Asset-backed securities (1)
 
22,234

 
167

 
282

 
22,119

Corporate debt securities (2)
 
12,653

 
390

 
4

 
13,039

U.S. Treasury securities
 
4,733

 
38

 
—

 
4,771

U.S. state and municipal securities
 
1,489

 
131

 
—

 
1,620

Non-agency commercial mortgage-backed securities
 
1,214

 
40

 
—

 
1,254

Certificates of deposit
 
800

 
3

 
—

 
803

Commercial paper (2,3)
 
200

 
—

 
—

 
200

Foreign government agency securities
 
300

 
1

 
—

 
301

Other
 
22

 
—

 
—

 
22

Total available for sale securities
 
$
273,747

 
$
7,932

 
$
463

 
$
281,216

December 31, 2019
 
 
 
 
 
 
 
 
Available for sale securities
 
 
 
 
 
 
 
 
U.S. agency mortgage-backed securities
 
$
45,964

 
$
312

 
$
121

 
$
46,155

Corporate debt securities (2)
 
5,427

 
57

 
—

 
5,484

Asset-backed securities (1)
 
4,970

 
30

 
13

 
4,987

U.S. Treasury securities
 
3,387

 
3

 
6

 
3,384

Certificates of deposit
 
1,000

 
4

 
—

 
1,004

Commercial paper (2,3)
 
394

 
1

 
—

 
395

Non-agency commercial mortgage-backed securities
 
13

 
—

 
—

 
13

Total available for sale securities
 
$
61,155

 
$
407

 
$
140

 
$
61,422

Held to maturity securities
 
 
 
 
 
 
 
 
U.S. agency mortgage-backed securities
 
$
109,325

 
$
1,521

 
$
280

 
$
110,566

Asset-backed securities (1)
 
17,806

 
50

 
85

 
17,771

Corporate debt securities (2)
 
4,661

 
57

 
—

 
4,718

U.S. state and municipal securities
 
1,301

 
103

 
—

 
1,404

Non-agency commercial mortgage-backed securities
 
1,119

 
22

 
—

 
1,141

U.S. Treasury securities
 
223

 
5

 
—

 
228

Certificates of deposit
 
200

 
—

 
—

 
200

Foreign government agency securities
 
50

 
—

 
—

 
50

Other
 
21

 
—

 
—

 
21

Total held to maturity securities
 
$
134,706

 
$
1,758

 
$
365

 
$
136,099


(1) Approximately 41% and 43% of asset-backed securities held as of June 30, 2020 and December 31, 2019, respectively, were Federal Family Education Loan Program Asset-Backed Securities. Asset-backed securities collateralized by credit card receivables represented approximately 45% and 42% of the asset-backed securities held as of June 30, 2020 and December 31, 2019, respectively.
(2) As of June 30, 2020 approximately 49% of the total AFS, and as of December 31, 2019 approximately 32%, of the total AFS and HTM investments in corporate debt securities and commercial paper were issued by institutions in the financial services industry.
(3) Included in cash and cash equivalents on the condensed consolidated balance sheets, but excluded from this table is $2.5 billion of AFS commercial paper as of December 31, 2019 (none as of June 30, 2020). These holdings have maturities of three months or less and an aggregate market value equal to amortized cost.

In October 2019, the Federal Reserve issued a final enhanced prudential standards rule, and the Federal Reserve, the Office of the Comptroller of the Currency, and the FDIC jointly issued a final regulatory capital and liquidity rule. With total consolidated assets of $294.0 billion at December 31, 2019, CSC is designated as a Category III firm pursuant to the framework established by the final rules. Accordingly, the Company opted to exclude AOCI from its regulatory capital as permitted by the regulatory capital and liquidity rule beginning January 1, 2020. In accordance with ASC 320 and as of January 1, 2020, the Company transferred all of its investment securities designated as HTM to the AFS category without tainting our intent to hold other debt securities to maturity. At the date of transfer, these securities had a total amortized cost of $134.7 billion and a total net unrealized gain of $1.4 billion.

At June 30, 2020, our banking subsidiaries had pledged securities with a fair value of $36.7 billion as collateral to secure borrowing capacity on secured credit facilities with the Federal Home Loan Bank (FHLB) (see Note 9). Our banking
subsidiaries also pledge investment securities as collateral to secure borrowing capacity at the Federal Reserve discount window, and had pledged securities with a fair value of $8.8 billion as collateral for this facility at June 30, 2020. The Company also pledges securities issued by federal agencies to secure certain trust deposits. The fair value of these pledged securities was $1.1 billion at June 30, 2020.

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
 
 
 
June 30, 2020
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Available for sale securities
 
 
 
 
 
 
 
 
 
 
 
Asset-backed securities
$
5,888

 
$
162

 
$
3,604

 
$
120

 
$
9,492

 
$
282

U.S. agency mortgage-backed securities
24,528

 
138

 
9,687

 
39

 
34,215

 
177

Corporate debt securities
928

 
4

 
—

 
—

 
928

 
4

Total
$
31,344

 
$
304

 
$
13,291

 
$
159

 
$
44,635

 
$
463

December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Available for sale securities
 
 
 
 
  
 
 
 
 
 
 
U.S. agency mortgage-backed securities
$
16,023

 
$
94

 
$
6,592

 
$
27

 
$
22,615

 
$
121

Asset-backed securities
960

 
6

 
298

 
7

 
1,258

 
13

U.S. Treasury securities
510

 
—

 
1,243

 
6

 
1,753

 
6

Total
$
17,493

 
$
100

 
$
8,133

 
$
40

 
$
25,626

 
$
140

Held to maturity securities
 

 
 

 
 

 
 

 
 

 
 

U.S. agency mortgage-backed securities
$
16,183

 
$
100

 
$
18,910

 
$
180

 
$
35,093

 
$
280

Asset-backed securities
7,507

 
63

 
2,898

 
22

 
10,405

 
85

Total
$
23,690

 
$
163

 
$
21,808

 
$
202

 
$
45,498

 
$
365

Total securities with unrealized losses
$
41,183

 
$
263

 
$
29,941

 
$
242

 
$
71,124

 
$
505


At June 30, 2020, 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.

Please refer to Note 2 for a description of management’s quarterly evaluation of AFS securities in unrealized loss positions. No amounts were recognized as credit loss expense and no securities were written down to fair value through earnings for the six months ended June 30, 2020. None of the Company’s AFS securities held as of June 30, 2020 had an allowance for credit losses. No amounts were recognized as OTTI in earnings or other comprehensive income during the year ended December 31, 2019, and as of December 31, 2019, Schwab did not hold any securities on which OTTI was previously recognized.

The Company had $594 million of accrued interest receivable as of June 30, 2020 for AFS securities, and $471 million of accrued interest receivable for AFS and HTM securities as of December 31, 2019. These amounts are excluded from the amortized cost basis of AFS and HTM securities and included in other assets on the condensed consolidated balance sheets. There were no write-offs of accrued interest receivable on AFS securities during the six months ended June 30, 2020, or write-offs of accrued interest receivable on AFS securities or HTM securities during the year ended December 31, 2019.
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 securities are as follows:
June 30, 2020
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
$
1,090

 
$
22,122

 
$
55,851

 
$
158,024

 
$
237,087

Asset-backed securities
60

 
8,183

 
5,700

 
8,176

 
22,119

Corporate debt securities
2,750

 
8,628

 
1,661

 
—

 
13,039

U.S. Treasury securities
3,943

 
828

 
—

 
—

 
4,771

U.S. state and municipal securities
—

 
103

 
631

 
886

 
1,620

Non-agency commercial mortgage-backed securities
—

 
—

 
—

 
1,254

 
1,254

Certificates of deposit
803

 
—

 
—

 
—

 
803

Commercial paper
200

 
—

 
—

 
—

 
200

Foreign government agency securities
—

 
301

 
—

 
—

 
301

Other
—

 
—

 
—

 
22

 
22

Total fair value
$
8,846

 
$
40,165

 
$
63,843

 
$
168,362

 
$
281,216

Total amortized cost
$
25,912

 
$
36,951

 
$
57,237

 
$
153,647

 
$
273,747



Proceeds and gross realized gains and losses from sales of AFS securities are as follows:
 
Three Months Ended
June 30,
 
Six Months Ended June 30,
 
 
 
2020
 
2019
 
2020
 
2019
Proceeds
$
1

 
$
5,622

 
$
70

 
$
16,274

Gross realized gains
—

 
7

 
—

 
10

Gross realized losses
—

 
4

 
—

 
6