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Fair Values of Assets and Liabilities
 9 Months Ended
Sep. 30, 2022
Fair Value Disclosures [Abstract]  
Fair Values of Assets and Liabilities Fair Values of Assets and Liabilities
Assets and liabilities measured at fair value on a recurring basis

Schwab’s assets and liabilities measured at fair value on a recurring basis include: certain cash equivalents, certain investments segregated and on deposit for regulatory purposes, AFS securities, and certain other assets and accrued expenses and other liabilities. The Company uses the market approach to determine the fair value of assets and liabilities. When available, the Company uses quoted prices in active markets to measure the fair value of assets and liabilities. Quoted prices for investments in exchange-traded securities represent end-of-day close prices published by exchanges. Quoted prices for money market funds and other mutual funds represent reported net asset values. When utilizing market data and bid-ask spread, the Company uses the price within the bid-ask spread that best represents fair value. When quoted prices in active markets do not exist, the Company uses prices obtained from independent third-party pricing services to measure the fair value of investment assets. We generally obtain prices from three independent third-party pricing sources for assets recorded at fair value.

Our primary independent pricing service provides prices for our fixed income investments such as commercial paper; certificates of deposit; U.S. government and agency securities; state and municipal securities; corporate debt securities; asset-backed securities; foreign government agency securities; and non-agency commercial mortgage-backed securities. Such prices are based on observable trades, broker/dealer quotes, and discounted cash flows that incorporate observable information such as yields for similar types of securities (a benchmark interest rate plus observable spreads) and weighted-average maturity for the same or similar “to-be-issued” securities. We compare the prices obtained from the primary independent pricing service to the prices obtained from the additional independent pricing services to determine if the price obtained from the primary independent pricing service is reasonable. Schwab does not adjust the prices received from independent third-party pricing services unless such prices are inconsistent with the definition of fair value and result in material differences in the amounts recorded.

Liabilities measured at fair value on a recurring basis include repurchase liabilities related to client-held fractional shares of equities, ETFs, and other securities, which are included in other assets on the condensed consolidated balance sheets. The Company has elected the fair value option pursuant to ASC 825 Financial Instruments for the repurchase liabilities to match the measurement and accounting of the related client-held fractional shares. The fair values of the repurchase liabilities are based on quoted market prices or other observable market data consistent with the related client-held fractional shares. Gains and losses on client-held fractional shares offset the gains and losses on the corresponding repurchase liabilities, resulting in no impact to the consolidated statements of income. The Company’s liabilities to repurchase client-held fractional shares do not have credit risk, and, as a result, the Company has not recognized any gains or losses in the condensed consolidated statements of income or comprehensive income attributable to instrument-specific credit risk for these repurchase liabilities. The repurchase liabilities are included in accrued expenses and other liabilities on the condensed consolidated balance sheets.

For a description of the fair value hierarchy and Schwab’s fair value methodologies, see Item 8 – Note 2 in the 2021 Form 10-K. The Company did not adjust prices received from the primary independent third-party pricing service at September 30, 2022 or December 31, 2021.
Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables present the fair value hierarchy for assets and liabilities measured at fair value on a recurring basis:
September 30, 2022Level 1Level 2Level 3Balance at
Fair Value
Cash equivalents:
Money market funds$16,825 $— $— $16,825 
Commercial paper— 287 — 287 
Total cash equivalents16,825 287 — 17,112 
Investments segregated and on deposit for regulatory purposes:
Certificates of deposit— 350 — 350 
U.S. Government securities— 24,622 — 24,622 
Total investments segregated and on deposit for regulatory purposes— 24,972 — 24,972 
Available for sale securities:
U.S. agency mortgage-backed securities— 163,005 — 163,005 
U.S. Treasury securities— 40,346 — 40,346 
Asset-backed securities— 14,820 — 14,820 
Corporate debt securities— 13,007 — 13,007 
U.S. state and municipal securities— 662 — 662 
Non-agency commercial mortgage-backed securities— 777 — 777 
Certificates of deposit— 2,524 — 2,524 
Foreign government agency securities— 1,064 — 1,064 
Other— 312 — 312 
Total available for sale securities— 236,517 — 236,517 
Other assets:
Equity, corporate debt, and other securities665 57 — 722 
Mutual funds and ETFs518 — — 518 
State and municipal debt obligations— 9 — 9 
U.S. Government securities— 25 — 25 
Total other assets1,183 91 — 1,274 
Total assets$18,008 $261,867 $— $279,875 
Accrued expenses and other liabilities$1,073 $42 $— $1,115 
Total liabilities$1,073 $42 $— $1,115 
December 31, 2021Level 1Level 2Level 3Balance at
Fair Value
Cash equivalents:
Money market funds$11,719 $— $— $11,719 
Total cash equivalents11,719 — — 11,719 
Investments segregated and on deposit for regulatory purposes:
Certificates of deposit— 350 — 350 
U.S. Government securities— 36,349 — 36,349 
Total investments segregated and on deposit for regulatory purposes— 36,699 — 36,699 
Available for sale securities:
U.S. agency mortgage-backed securities— 334,355 — 334,355 
U.S. Treasury securities— 21,282 — 21,282 
Asset-backed securities— 17,546 — 17,546 
Corporate debt securities— 12,344 — 12,344 
U.S. state and municipal securities— 1,687 — 1,687 
Non-agency commercial mortgage-backed securities— 1,190 — 1,190 
Certificates of deposit— 999 — 999 
Foreign government agency securities— 425 — 425 
Commercial paper — 200 — 200 
Other— 26 — 26 
Total available for sale securities— 390,054 — 390,054 
Other assets:
Equity, corporate debt, and other securities854 59 — 913 
Mutual funds and ETFs636 — — 636 
State and municipal debt obligations— 32 — 32 
U.S. Government securities— 3 — 3 
Total other assets1,490 94 — 1,584 
Total assets $13,209 $426,847 $— $440,056 
Accrued expenses and other liabilities$1,354 $45 $— $1,399 
Total liabilities$1,354 $45 $— $1,399 
Fair Value of Other Financial Instruments
The following tables present the fair value hierarchy for other financial instruments:
September 30, 2022Carrying
Amount		Level 1Level 2Level 3Balance at
Fair Value
Assets     
Cash and cash equivalents$29,374 $29,374 $— $— $29,374 
Cash and investments segregated and on deposit for
  regulatory purposes		19,115 5,488 13,627 — 19,115 
Receivables from brokerage clients — net73,848 — 73,848 — 73,848 
Held to maturity securities:  
U.S. agency mortgage-backed securities96,323 — 81,158 — 81,158 
Total held to maturity securities96,323 — 81,158 — 81,158 
Bank loans — net:     
First Mortgages24,652 — 21,694 — 21,694 
HELOCs606 — 670 — 670 
Pledged asset lines14,940 — 14,940 — 14,940 
Other181 — 181 — 181 
Total bank loans — net40,379 — 37,485 — 37,485 
Other assets3,121 — 3,121 — 3,121 
Liabilities     
Bank deposits$395,715 $— $395,715 $— $395,715 
Payables to brokerage clients110,012 — 110,012 — 110,012 
Accrued expenses and other liabilities6,487 — 6,487 — 6,487 
Short-term borrowings500 — 500 — 500 
Long-term debt20,768 — 18,864 — 18,864 
December 31, 2021Carrying
Amount		Level 1Level 2Level 3Balance at
Fair Value
Assets     
Cash and cash equivalents$51,256 $51,256 $— $— $51,256 
Cash and investments segregated and on deposit for
  regulatory purposes		17,246 4,151 13,095 — 17,246 
Receivables from brokerage clients — net90,560 — 90,560 — 90,560 
Bank loans — net:     
First Mortgages21,077 — 21,027 — 21,027 
HELOCs646 — 668 — 668 
Pledged asset lines12,709 — 12,709 — 12,709 
Other204 — 204 — 204 
Total bank loans — net34,636 — 34,608 — 34,608 
Other assets3,561 — 3,561 — 3,561 
Liabilities     
Bank deposits$443,778 $— $443,778 $— $443,778 
Payables to brokerage clients125,671 — 125,671 — 125,671 
Accrued expenses and other liabilities8,327 — 8,327 — 8,327 
Short-term borrowings4,855 — 4,855 — 4,855 
Long-term debt18,820 — 19,383 — 19,383