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Investment Securities
 3 Months Ended
Mar. 31, 2024
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:
March 31, 2024Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
Available for sale securities    
U.S. agency mortgage-backed securities$66,573 $— $6,402 $60,171 
U.S. Treasury securities21,095 — 902 20,193 
Corporate debt securities (1)
12,232 — 864 11,368 
Asset-backed securities (2)
8,166 — 319 7,847 
Foreign government agency securities831 — 28 803 
U.S. state and municipal securities632 — 57 575 
Non-agency commercial mortgage-backed securities123 — 13 110 
Other22 — 3 19 
Unallocated portfolio layer method fair value basis adjustments (3)
(47)— (47)— 
Total available for sale securities
$109,627 $— $8,541 $101,086 
Held to maturity securities    
U.S. agency mortgage-backed securities$156,371 $402 $14,433 $142,340 
Total held to maturity securities$156,371 $402 $14,433 $142,340 
December 31, 2023
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
$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 
(1) As of March 31, 2024 and December 31, 2023, approximately 34% and 36%, respectively, of the total AFS in corporate debt securities were issued by institutions in the financial services industry.
(2) Approximately 57% and 61% of asset-backed securities held as of March 31, 2024 and December 31, 2023, respectively, were Federal Family Education Loan Program Asset-Backed Securities. Asset-backed securities collateralized by credit card receivables represented approximately 27% and 24% of the asset-backed securities held as of March 31, 2024 and December 31, 2023, respectively.
(3) This represents the amount of PLM basis adjustments related to AFS securities hedged in a closed portfolio. See Note 11 for more information on PLM hedge accounting.
At March 31, 2024, 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 also pledge investment securities as collateral to secure borrowing capacity at the Federal Reserve discount window, and had pledged securities with a value of $32.9 billion as collateral for this facility at March 31, 2024. 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 March 31, 2024.

At March 31, 2024, 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 $6.7 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 8 and 12 for additional information on these repurchase agreements.

At March 31, 2024, our banking subsidiaries had pledged AFS securities consisting of U.S. Treasury securities with an aggregate fair value of $191 million as initial margin on interest rate swaps (see Notes 11 and 12). 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. Initial margin is posted through futures commission merchants (FCM) which serve as the intermediary between the 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.

Securities with unrealized losses, aggregated by category and period of continuous unrealized loss, of AFS investment securities are as follows:
Less than 12 months12 months or longerTotal
March 31, 2024Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
Available for sale securities      
U.S. agency mortgage-backed securities (1)
$1 $— $60,171 $6,402 $60,172 $6,402 
U.S. Treasury securities754 1 18,447 901 19,201 902 
Corporate debt securities— — 11,193 864 11,193 864 
Asset-backed securities (1)
22 — 7,676 319 7,698 319 
Foreign government agency securities— — 803 28 803 28 
U.S. state and municipal securities— — 575 57 575 57 
Non-agency commercial mortgage-backed securities— — 110 13 110 13 
Other— — 19 3 19 3 
Total (2)
$777 $1 $98,994 $8,587 $99,771 $8,588 
December 31, 2023   
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 
(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 $47 million and
$19 million at March 31, 2024, and December 31, 2023, respectively.
At March 31, 2024, 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 2023 Form 10-K. No amounts were recognized as credit loss expense and no securities were written down to fair value through earnings for the three months ended March 31, 2024 and the year ended December 31, 2023. None of the Company’s AFS securities held as of March 31, 2024 and December 31, 2023 had an allowance for credit losses. All HTM securities as of March 31, 2024 and December 31, 2023 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 $531 million and $565 million of accrued interest for AFS and HTM securities as of March 31, 2024 and December 31, 2023, 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 three months ended March 31, 2024, or for the year ended December 31, 2023.
The following table presents the Company’s estimated effective duration, which reflects anticipated future payments, by category at March 31, 2024:
In years
Estimated effective duration, exclusive of derivatives:
AFS investment securities portfolio
2.4
AFS and HTM investment securities portfolio3.9
Estimated effective duration, inclusive of derivatives (1):
AFS investment securities portfolio
2.1
AFS and HTM investment securities portfolio3.8
(1) See Note 11 for additional discussion on the Company’s derivatives.

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.

The maturities of AFS and HTM investment securities are as follows:
March 31, 2024Within
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$1,263 $10,067 $10,252 $38,589 $60,171 
U.S. Treasury securities9,982 10,211 — — 20,193 
Corporate debt securities4,406 5,514 1,448 — 11,368 
Asset-backed securities10 2,444 1,229 4,164 7,847 
Foreign government agency securities492 311 — — 803 
U.S. state and municipal securities— 97 386 92 575 
Non-agency commercial mortgage-backed securities— — — 110 110 
Other — — — 19 19 
Total fair value$16,153 $28,644 $13,315 $42,974 $101,086 
Total amortized cost (1)
$16,423 $30,576 $14,883 $47,792 $109,674 
Held to maturity securities     
U.S. agency mortgage-backed securities$1,076 $8,012 $36,508 $96,744 $142,340 
Total fair value$1,076 $8,012 $36,508 $96,744 $142,340 
Total amortized cost$1,099 $8,522 $39,472 $107,278 $156,371 
(1) For purposes of this table, the amortized cost of AFS securities excludes the unallocated PLM fair value hedge basis adjustments of $47 million at March 31, 2024.

Proceeds and gross realized gains and losses from sales of AFS investment securities are as follows:
Three Months Ended
March 31,
20242023
Proceeds$1,189 $1,051 
Gross realized gains— — 
Gross realized losses10 9