
September 30, 2020	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale securities
U.S. agency mortgage-backed securities	$	251,323	$	7,223	$	280	$	258,266
Asset-backed securities (1)	19,320		177		176		19,321
Corporate debt securities (2)	13,192		388		—		13,580
U.S. Treasury securities	7,871		31		—		7,902
U.S. state and municipal securities	1,548		142		—		1,690
Non-agency commercial mortgage-backed securities	1,214		52		—		1,266
Certificates of deposit	500		1		—		501

Foreign government agency securities	1,209		2		1		1,210
Other	22		—		—		22
Total available for sale securities	$	296,199	$	8,016	$	457	$	303,758


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 49% and 43% of asset-backed securities held as of September 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 37% and 42% of the asset-backed securities held as of September 30, 2020 and December 31, 2019, respectively.

(2) As of September 30, 2020 approximately 47% 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 September 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 September 30, 2020, our banking subsidiaries had pledged securities with a fair value of $36.9 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 $7.6 billion as collateral for this facility at September 30, 2020. The Company also pledges securities issued by federal agencies to secure certain trust deposits. The fair value of these pledged securities was $1.3 billion at September 30, 2020.


	Less than 12 months				12 months or longer				Total

September 30, 2020	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available for sale securities

Asset-backed securities	$	4,053	$	83	$	3,993	$	93	$	8,046	$	176
U.S. agency mortgage-backed securities	41,247		266		5,852		14		47,099		280



Foreign government agency securities	658		1		—		—		658		1



Total	$	45,958	$	350	$	9,845	$	107	$	55,803	$	457


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 September 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.

For a description of management’s quarterly evaluation of AFS securities in unrealized loss positions see Note 2. No amounts were recognized as credit loss expense and no securities were written down to fair value through earnings for the nine months ended September 30, 2020. None of the Company’s AFS securities held as of September 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 $597 million of accrued interest receivable as of September 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 nine months ended September 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.


September 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	$	1,437	$	21,995	$	60,619	$	174,215	$	258,266
Asset-backed securities	10		6,402		4,469		8,440		19,321
Corporate debt securities	4,262		7,000		2,318		—		13,580
U.S. Treasury securities	7,559		343		—		—		7,902
U.S. state and municipal securities	—		104		765		821		1,690
Non-agency commercial mortgage-backed securities	—		—		—		1,266		1,266
Certificates of deposit	501		—		—		—		501

Foreign government agency securities	125		1,085		—		—		1,210
Other	—		—		—		22		22
Total fair value	$	13,894	$	36,929	$	68,171	$	184,764	$	303,758
Total amortized cost	$	13,820	$	35,591	$	65,043	$	181,745	$	296,199