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Investment Securities
 12 Months Ended
Dec. 31, 2023
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 AFS and HTM investment securities are as follows:
December 31, 2023Amortized
Cost		Gross Unrealized
Gains		Gross Unrealized
Losses		Fair
Value
Available for sale securities
U.S. agency mortgage-backed securities$69,173 $— $6,378 $62,795 
U.S. Treasury securities22,459 1 989 21,471 
Corporate debt securities (1)
13,344 — 860 12,484 
Asset-backed securities (2)
9,465 — 378 9,087 
Foreign government agency securities1,035 — 33 1,002 
U.S. state and municipal securities634 — 55 579 
Non-agency commercial mortgage-backed securities123 — 14 109 
Certificates of deposit100 — — 100 
Other22 — 3 19 
Unallocated portfolio layer method fair value basis adjustments (3)
(19)— (19)— 
Total available for sale securities (4)
$116,336 $1 $8,691 $107,646 
Held to maturity securities
U.S. agency mortgage-backed securities$159,452 $1,435 $13,796 $147,091 
Total held to maturity securities$159,452 $1,435 $13,796 $147,091 
December 31, 2022
Available for sale securities
U.S. agency mortgage-backed securities$85,994 $— $8,306 $77,688 
U.S. Treasury securities41,879 — 1,877 40,002 
Asset-backed securities (2)
13,672 — 649 13,023 
Corporate debt securities (1)
13,830 — 1,275 12,555 
Certificates of deposit2,245 — 14 2,231 
Foreign government agency securities1,033 — 64 969 
U.S. state and municipal securities713 — 75 638 
Non-agency commercial mortgage-backed securities
473 — 23 450 
Other323 — 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) As of December 31, 2023 and 2022, approximately 36% and 37%, respectively, of the total AFS corporate debt securities were issued by institutions in the financial services industry.
(2) Approximately 61% and 57% of asset-backed securities held as of December 31, 2023 and 2022, respectively, were Federal Family Education Loan Program Asset-Backed Securities. Asset-backed securities collateralized by credit card receivables represented approximately 24% and 18% of the asset-backed securities held as of December 31, 2023 and 2022, respectively.
(3) This represents the amount of PLM basis adjustments related to AFS securities hedged in a closed portfolio. See Notes 2 and 16 for more information on PLM hedge accounting.
(4) Included in cash and cash equivalents on the consolidated balance sheets, but excluded from this table, is $48 million of AFS commercial paper as of December 31, 2022 (none as of December 31, 2023). These holdings have maturities of three months or less at the time of acquisition, 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 December 31, 2023, the total remaining unamortized loss on these securities transferred to HTM included in AOCI was $11.5 billion net of tax effect ($15.0 billion pre-tax).
At December 31, 2023, our banking subsidiaries had pledged investment securities with a value of $70.1 billion as collateral to secure borrowing capacity on secured credit facilities with the FHLB (see Note 12). 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 value of $6.2 billion as collateral for this facility at December 31, 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 $39.2 billion as collateral for this facility at December 31, 2023. The Company also pledges investment securities issued by federal agencies to secure certain trust deposits. The value of these pledged securities was $1.6 billion at December 31, 2023.

At December 31, 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 $3.7 billion, and AFS securities pledged were U.S. agency mortgage-backed securities with an aggregate fair value of $1.5 billion. Securities pledged as collateral under these repurchase agreements may be sold, repledged, or otherwise used by the counterparties. See Notes 2, 12, and 17 for additional information on these repurchase agreements.

At December 31, 2023, our banking subsidiaries had pledged AFS securities consisting of U.S. Treasury securities with an aggregate fair value of $195 million as initial margin on interest rate swaps (see Notes 16 and 17). All of Schwab’s interest rate swaps are cleared through CCPs which require the Company to post initial margin as collateral against potential losses. Initial margin is posted through futures commission merchants (FCM) which serve as the intermediary between CCPs and Schwab. The FCM agreements governing our swaps allow for securities pledged as initial margin to be sold, repledged, or otherwise used by the FCM.

AFS investment 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
December 31, 2023Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
Available for sale securities      
U.S. agency mortgage-backed securities (1)
$1 $— $62,794 $6,378 $62,795 $6,378 
U.S. Treasury securities— — 19,450 989 19,450 989 
Corporate debt securities— — 12,484 860 12,484 860 
Asset-backed securities (1)
29 — 9,058 378 9,087 378 
Foreign government agency securities— — 1,002 33 1,002 33 
U.S. state and municipal securities— — 579 55 579 55 
Non-agency commercial mortgage-backed securities— — 109 14 109 14 
Other— — 19 3 19 3 
Total (2)
$30 $— $105,495 $8,710 $105,525 $8,710 
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 securities27,063 716 12,519 1,161 39,582 1,877 
Asset-backed securities6,717 217 6,299 432 13,016 649 
Corporate debt securities8,552 542 3,998 733 12,550 1,275 
Certificates of deposit2,033 10 196 4 2,229 14 
Foreign government agency securities756 50 214 14 970 64 
U.S. state and municipal securities482 31 157 44 639 75 
Non-agency commercial mortgage-backed securities443 23 — — 443 23 
Other315 8 — — 315 8 
Total$81,299 $3,622 $65,941 $8,669 $147,240 $12,291 
(1) Unrealized losses less than 12 months amounts were less than $500 thousand.
(2) For purposes of this table, unrealized losses on AFS securities excludes the unallocated PLM fair value hedge basis adjustments of $19 million at December 31, 2023.
At December 31, 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 Note 2. No amounts were recognized as credit loss expense and no securities were written down to fair value through earnings for the years ended December 31, 2023 and 2022. None of the Company’s AFS securities held as of December 31, 2023 and 2022 had an allowance for credit losses. All HTM securities as of December 31, 2023 and 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 $565 million and $685 million of accrued interest receivable for AFS and HTM securities as of December 31, 2023 and 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 consolidated balance sheets. There were no write-offs of accrued interest receivable on AFS and HTM securities during the years ended December 31, 2023 or 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 December 31, 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 December 31, 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 December 31, 2023 is approximately 3.9 years and for our AFS investment securities is approximately 2.2 years (see Note 16).

The maturities of AFS and HTM investment securities are as follows:
December 31, 2023Within
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 $798 $11,126 $10,650 $40,221 $62,795 
U.S. Treasury securities9,142 12,329 — — 21,471 
Corporate debt securities2,708 8,306 1,470 — 12,484 
Asset-backed securities— 2,443 1,290 5,354 9,087 
Foreign government agency securities495 507 — — 1,002 
U.S. state and municipal securities— 71 396 112 579 
Non-agency commercial mortgage-backed securities — — — 109 109 
Certificates of deposit100 — — — 100 
Other— — — 19 19 
Total fair value$13,243 $34,782 $13,806 $45,815 $107,646 
Total amortized cost (1)
$13,427 $36,943 $15,345 $50,640 $116,355 
Weighted-average yield (2)
1.82 %1.84 %1.87 %2.62 %2.18 %
Held to maturity securities     
U.S. agency mortgage-backed securities $1,217 $7,765 $37,584 $100,525 $147,091 
Total fair value$1,217 $7,765 $37,584 $100,525 $147,091 
Total amortized cost$1,248 $8,198 $40,139 $109,867 $159,452 
Weighted-average yield (2)
2.61 %1.98 %1.76 %1.73 %1.75 %
(1) For purposes of this table, the amortized cost of AFS securities excludes the unallocated PLM fair value hedge basis adjustments of $19 million at December 31, 2023.
(2) The weighted-average yield is computed using the amortized cost at December 31, 2023.
Proceeds and gross realized gains and losses from sales of AFS investment securities are as follows:
Year Ended December 31,202320222021
Proceeds$8,465 $24,704 $13,306 
Gross realized gains1 157 40 
Gross realized losses62 166 36