
September 30, 2023	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale securities
U.S. agency mortgage-backed securities	$	73,518	$	—	$	8,657	$	64,861
U.S. Treasury securities	23,139		—		1,351		21,788
Asset-backed securities (1)	10,111		—		487		9,624
Corporate debt securities (2)	13,361		—		1,207		12,154
Certificates of deposit	100		—		1		99
Foreign government agency securities	1,034		—		49		985
U.S. state and municipal securities	636		—		81		555
Non-agency commercial mortgage-backed securities	208		—		20		188

Other	22		—		4		18
Unallocated portfolio layer method fair value basis adjustments (3)	(57)		—		(57)		—
Total available for sale securities (4)	$	122,072	$	—	$	11,800	$	110,272
Held to maturity securities
U.S. agency mortgage-backed securities	$	162,452	$	—	$	19,449	$	143,003









Total held to maturity securities	$	162,452	$	—	$	19,449	$	143,003


December 31, 2022	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale securities
U.S. agency mortgage-backed securities	$	85,994	$	—	$	8,306	$	77,688
U.S. Treasury securities	41,879		—		1,877		40,002
Asset-backed securities (1)	13,672		—		649		13,023
Corporate debt securities (2)	13,830		—		1,275		12,555

Certificates of deposit	2,245		—		14		2,231
Foreign government agency securities	1,033		—		64		969
U.S. state and municipal securities	713		—		75		638

Non-agency commercial mortgage-backed securities	473		—		23		450

Other	323		—		8		315
Total available for sale securities (4)	$	160,162	$	—	$	12,291	$	147,871
Held to maturity securities
U.S. agency mortgage-backed securities	$	173,074	$	1,442	$	15,580	$	158,936








Total held to maturity securities	$	173,074	$	1,442	$	15,580	$	158,936

(1) Approximately 61% and 57% of asset-backed securities held as of September 30, 2023 and December 31, 2022, respectively, were Federal Family Education Loan Program Asset-Backed Securities. Asset-backed securities collateralized by credit card receivables represented approximately 22% and 18% of the asset-backed securities held as of September 30, 2023 and December 31, 2022, respectively.

(4) Included in cash and cash equivalents on the condensed consolidated balance sheets, but excluded from this table is $48 million of AFS commercial paper as of December 31, 2022 (none as of September 30, 2023). These holdings have maturities of three months or less and an aggregate market value equal to amortized cost.

During 2022, the Company transferred a total of $188.6 billion of U.S. agency mortgage-backed securities with a total net pre-tax unrealized loss at the times of transfer of $18.2 billion from the AFS category to the HTM category. The transfer of these securities to the HTM category reduces the Company’s exposure to fluctuations in AOCI that can result from unrealized losses on AFS securities due to changes in market interest rates. The unrealized loss at the time of transfer is amortized over the remaining life of the security, offsetting the amortization of the security’s premium or discount, and resulting in no impact to net income. As of September 30, 2023, the total remaining unamortized loss on these securities transferred to HTM included in AOCI was $11.8 billion net of tax effect ($15.6 billion pre-tax).

At September 30, 2023, our banking subsidiaries had pledged investment securities with a value of $68.2 billion as collateral to secure borrowing capacity on secured credit facilities with the FHLB (see Note 8). Our banking subsidiaries pledge investment securities as collateral to secure borrowing capacity at the Federal Reserve discount window, and had pledged securities with a fair value of $7.2 billion as collateral for this facility at September 30, 2023. Beginning in 2023, our banking subsidiaries pledge investment securities as collateral to secure borrowing capacity at the Federal Reserve through the Bank Term Funding Program, and had pledged securities with a par value of $40.2 billion as collateral for this facility at September 30, 2023. The Company also pledges investment securities issued by federal agencies to secure certain trust deposits. The fair value of these pledged securities was $1.5 billion at September 30, 2023.

At September 30, 2023, our banking subsidiaries had pledged HTM and AFS securities as collateral under repurchase agreements with external financial institutions. HTM securities pledged were U.S. agency mortgage-backed securities with an aggregate amortized cost of $5.3 billion, and AFS securities pledged were U.S. agency mortgage-backed securities with an aggregate fair value of $1.8 billion. Securities pledged as collateral under these repurchase agreements may be sold, repledged, or otherwise used by the counterparties. See Notes 8 and 12 for additional information on these repurchase agreements.

At September 30, 2023, our banking subsidiaries had pledged AFS securities with an aggregate fair value of $180 million as initial margin on interest rate swaps (see Note 11). All of Schwab’s interest rate swaps are cleared through central counterparty (CCP) clearing houses which require the Company to post initial margin as collateral against potential losses.


	Less than 12 months				12 months or longer				Total

September 30, 2023	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available for sale securities
U.S. agency mortgage-backed securities	$	97	$	1	$	64,763	$	8,656	$	64,860	$	8,657
U.S. Treasury securities	1,493		2		20,295		1,349		21,788		1,351
Asset-backed securities	32		—		9,580		487		9,612		487
Corporate debt securities	—		—		12,155		1,207		12,155		1,207
Certificates of deposit	—		—		99		1		99		1
Foreign government agency securities	—		—		985		49		985		49
U.S. state and municipal securities	—		—		555		81		555		81
Non-agency commercial mortgage-backed securities	—		—		188		20		188		20

Other	—		—		18		4		18		4
Total (1)	$	1,622	$	3	$	108,638	$	11,854	$	110,260	$	11,857


December 31, 2022
Available for sale securities
U.S. agency mortgage-backed securities	$	34,938	$	2,025	$	42,558	$	6,281	$	77,496	$	8,306
U.S. Treasury securities	27,063		716		12,519		1,161		39,582		1,877
Asset-backed securities	6,717		217		6,299		432		13,016		649
Corporate debt securities	8,552		542		3,998		733		12,550		1,275
Certificates of deposit	2,033		10		196		4		2,229		14
Foreign government agency securities	756		50		214		14		970		64
U.S. state and municipal securities	482		31		157		44		639		75
Non-agency commercial mortgage-backed securities	443		23		—		—		443		23
Other	315		8		—		—		315		8
Total	$	81,299	$	3,622	$	65,941	$	8,669	$	147,240	$	12,291

(1) For purposes of this table, unrealized losses on AFS securities excludes the PLM fair value hedge basis adjustments of $57 million at September 30, 2023.

At September 30, 2023, 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 Item 8 – Note 2 in the 2022 Form 10-K. 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, 2023 and the year ended December 31, 2022. None of the Company’s AFS securities held as of September 30, 2023 and December 31, 2022 had an allowance for credit losses. All HTM securities as of September 30, 2023 and December 31, 2022 were U.S. agency mortgage-backed securities and therefore had no allowance for credit losses because expected nonpayment of the amortized cost basis is zero.

The Company had $566 million and $685 million of accrued interest for AFS and HTM securities as of September 30, 2023 and December 31, 2022, respectively. These amounts are excluded from the amortized cost basis and fair market value of AFS and HTM securities and included in other assets on the condensed consolidated balance sheets. There were no writeoffs of accrued interest receivable on AFS and HTM securities during the nine months ended September 30, 2023, or for the year ended December 31, 2022.

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. As of September 30, 2023, the estimated effective duration, which reflects anticipated future payments, of our total AFS and HTM investment securities portfolio is approximately 4.0 years. The estimated effective duration of our AFS investment securities portfolio is approximately 2.5 years as of September 30, 2023. Including the impact of the Company’s use of derivative instruments to manage changes in the fair values of our AFS investment portfolio, the effective duration of our total AFS and HTM investments securities as of September 30, 2023 is approximately 3.9 years and for our AFS investment securities is approximately 2.2 years (see Note 11).

The maturities of AFS and HTM investment securities are as follows:


September 30, 2023	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	$	494	$	12,620	$	11,503	$	40,244	$	64,861
U.S. Treasury securities	8,649		13,139		—		—		21,788
Asset-backed securities	—		2,755		1,209		5,660		9,624
Corporate debt securities	2,160		8,514		1,480		—		12,154
Certificates of deposit	99		—		—		—		99
Foreign government agency securities	488		497		—		—		985
U.S. state and municipal securities	—		46		387		122		555
Non-agency commercial mortgage-backed securities	—		—		—		188		188

Other	—		—		—		18		18
Total fair value	$	11,890	$	37,571	$	14,579	$	46,232	$	110,272
Total amortized cost (1)	$	12,128	$	40,565	$	16,667	$	52,769	$	122,129

Held to maturity securities
U.S. agency mortgage-backed securities	$	724	$	6,780	$	36,652	$	98,847	$	143,003









Total fair value	$	724	$	6,780	$	36,652	$	98,847	$	143,003
Total amortized cost	$	749	$	7,343	$	41,217	$	113,143	$	162,452