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Fair Values of Assets and Liabilities
 9 Months Ended
Sep. 30, 2023
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, certain other assets, interest rate swaps and certain 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, and we generally obtain prices from three independent third-party pricing sources for such assets recorded at fair value.

Our primary independent pricing service provides prices for our fixed income investments such as commercial paper; certificates of deposits; 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 interest rate swaps and 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. Unrealized gains and losses on client-held fractional shares offset the unrealized gains and losses on the corresponding repurchase liabilities, resulting in no impact to the condensed 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.

The fair values of interest rate swaps are based on market observable interest rate yield curves. Fair value measurements are priced considering the coupon rate of the fixed leg of the contract and the variable coupon rate on the floating leg of the contract. Valuation is based on both spot and forward rates on the swap yield curve. The Company validates its valuations with counterparty quotations from CCPs. See Note 11 for additional information on the Company’s interest rate swaps.
For a description of the fair value hierarchy and Schwab’s fair value methodologies, see Item 8 – Note 2 in the 2022 Form 10-K. The Company did not adjust prices received from the primary independent third-party pricing service at September 30, 2023 or December 31, 2022.

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, 2023Level 1Level 2Level 3Balance at
Fair Value
Cash equivalents:
Money market funds$12,744 $— $— $12,744 
Total cash equivalents12,744 — — 12,744 
Investments segregated and on deposit for regulatory purposes:
U.S. Government securities— 11,368 — 11,368 
Certificates of deposit— 950 — 950 
Total investments segregated and on deposit for regulatory purposes— 12,318 — 12,318 
Available for sale securities:
U.S. agency mortgage-backed securities— 64,861 — 64,861 
U.S. Treasury securities— 21,788 — 21,788 
Asset-backed securities— 9,624 — 9,624 
Corporate debt securities— 12,154 — 12,154 
Certificates of deposit— 99 — 99 
Foreign government agency securities— 985 — 985 
U.S. state and municipal securities— 555 — 555 
Non-agency commercial mortgage-backed securities— 188 — 188 
Other— 18 — 18 
Total available for sale securities— 110,272 — 110,272 
Other assets:
Other securities owned at fair value:
Equity, corporate debt, and other securities877 59 — 936 
Mutual funds and ETFs677 — — 677 
State and municipal debt obligations— 11 — 11 
U.S. Government securities— 2 — 2 
Total other securities owned at fair value1,554 72 — 1,626 
Interest rate swaps— 3 — 3 
Total other assets1,554 75 — 1,629 
Total assets$14,298 $122,665 $— $136,963 
Accrued expenses and other liabilities:
Other$1,396 $37 $— $1,433 
Total accrued expenses and other liabilities1,396 37 — 1,433 
Total liabilities$1,396 $37 $— $1,433 
December 31, 2022Level 1Level 2Level 3Balance at
Fair Value
Cash equivalents:
Money market funds$14,007 $— $— $14,007 
Commercial paper— 48 — 48 
Total cash equivalents14,007 48 — 14,055 
Investments segregated and on deposit for regulatory purposes:
U.S. Government securities— 23,645 — 23,645 
Certificates of deposit— 1,000 — 1,000 
Total investments segregated and on deposit for regulatory purposes— 24,645 — 24,645 
Available for sale securities:
U.S. agency mortgage-backed securities— 77,688 — 77,688 
U.S. Treasury securities— 40,002 — 40,002 
Asset-backed securities— 13,023 — 13,023 
Corporate debt securities— 12,555 — 12,555 
Certificates of deposit— 2,231 — 2,231 
Foreign government agency securities— 969 — 969 
U.S. state and municipal securities— 638 — 638 
Non-agency commercial mortgage-backed securities— 450 — 450 
Other— 315 — 315 
Total available for sale securities— 147,871 — 147,871 
Other assets:
Other securities owned at fair value:
Equity, corporate debt, and other securities755 55 — 810 
Mutual funds and ETFs596 — — 596 
State and municipal debt obligations— 25 — 25 
U.S. Government securities— 1 — 1 
Total other securities owned at fair value1,351 81 — 1,432 
Total other assets1,351 81 — 1,432 
Total assets $15,358 $172,645 $— $188,003 
Accrued expenses and other liabilities:
Other$1,218 $43 $— $1,261 
Total accrued expenses and other liabilities1,218 43 — 1,261 
Total liabilities$1,218 $43 $— $1,261 
Fair Value of Other Financial Instruments
The following tables present the fair value hierarchy for other financial instruments:
September 30, 2023Carrying
Amount		Level 1Level 2Level 3Balance at
Fair Value
Assets     
Cash and cash equivalents$20,507 $20,507 $— $— $20,507 
Cash and investments segregated and on deposit for
  regulatory purposes		6,201 3,201 3,000 — 6,201 
Receivables from brokerage clients — net69,034 — 69,034 — 69,034 
Held to maturity securities:  
U.S. agency mortgage-backed securities162,452 — 143,003 — 143,003 
Total held to maturity securities162,452 — 143,003 — 143,003 
Bank loans — net:     
First Mortgages26,009 — 22,420 — 22,420 
HELOCs491 — 545 — 545 
Pledged asset lines13,538 — 13,538 — 13,538 
Other289 — 289 — 289 
Total bank loans — net40,327 — 36,792 — 36,792 
Other assets5,105 — 5,105 — 5,105 
Liabilities     
Bank deposits$284,408 $— $284,408 $— $284,408 
Payables to brokerage clients72,818 — 72,818 — 72,818 
Accrued expenses and other liabilities7,061 — 7,061 — 7,061 
Other short-term borrowings7,550 — 7,550 — 7,550 
Federal Home Loan Bank borrowings31,800 — 31,800 — 31,800 
Long-term debt24,758 — 22,632 — 22,632 
December 31, 2022Carrying
Amount		Level 1Level 2Level 3Balance at
Fair Value
Assets     
Cash and cash equivalents$26,140 $26,140 $— $— $26,140 
Cash and investments segregated and on deposit for
  regulatory purposes		18,288 6,156 12,132 — 18,288 
Receivables from brokerage clients — net66,573 — 66,573 — 66,573 
Held to maturity securities:    
U.S. agency mortgage-backed securities173,074 — 158,936 — 158,936 
Total held to maturity securities173,074 — 158,936 — 158,936 
Bank loans — net:     
First Mortgages25,132 — 22,201 — 22,201 
HELOCs593 — 657 — 657 
Pledged asset lines14,592 — 14,592 — 14,592 
Other188 — 188 — 188 
Total bank loans — net40,505 — 37,638 — 37,638 
Other assets3,788 — 3,788 — 3,788 
Liabilities     
Bank deposits$366,724 $— $366,724 $— $366,724 
Payables to brokerage clients97,438 — 97,438 — 97,438 
Accrued expenses and other liabilities5,584 — 5,584 — 5,584 
Other short-term borrowings4,650 — 4,650 — 4,650 
Federal Home Loan Bank borrowings12,400 — 12,400 — 12,400 
Long-term debt20,760 — 19,108 — 19,108