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Fair Values of Assets and Liabilities
 3 Months Ended
Mar. 31, 2024
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, securities sold but not yet purchased, 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 fair values of securities sold but not yet purchased are based on quoted market prices or other observable market data. 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 2023 Form 10-K. The Company did not adjust prices received from the primary independent third-party pricing service at March 31, 2024 or December 31, 2023.

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:
March 31, 2024Level 1Level 2Level 3Balance at
Fair Value
Cash equivalents:
Money market funds$12,807 $— $— $12,807 
Total cash equivalents12,807 — — 12,807 
Investments segregated and on deposit for regulatory purposes:
U.S. Government securities— 13,780 — 13,780 
Total investments segregated and on deposit for regulatory purposes— 13,780 — 13,780 
Available for sale securities:
U.S. agency mortgage-backed securities— 60,171 — 60,171 
U.S. Treasury securities— 20,193 — 20,193 
Corporate debt securities— 11,368 — 11,368 
Asset-backed securities— 7,847 — 7,847 
Foreign government agency securities— 803 — 803 
U.S. state and municipal securities— 575 — 575 
Non-agency commercial mortgage-backed securities— 110 — 110 
Other— 19 — 19 
Total available for sale securities— 101,086 — 101,086 
Other assets:
Other securities owned:
Equity, corporate debt, and other securities1,165 63 — 1,228 
Mutual funds and ETFs865 — — 865 
State and municipal debt obligations— 31 — 31 
U.S. Government securities— 2 — 2 
Total other securities owned2,030 96 — 2,126 
Interest rate swaps— 1 — 1 
Total other assets2,030 97 — 2,127 
Total assets$14,837 $114,963 $— $129,800 
Accrued expenses and other liabilities:
Other$1,860 $34 $— $1,894 
Total accrued expenses and other liabilities1,860 34 — 1,894 
Total liabilities$1,860 $34 $— $1,894 
December 31, 2023Level 1Level 2Level 3Balance at
Fair Value
Cash equivalents:
Money market funds$14,573 $— $— $14,573 
Total cash equivalents14,573 — — 14,573 
Investments segregated and on deposit for regulatory purposes:
U.S. Government securities— 20,358 — 20,358 
Total investments segregated and on deposit for regulatory purposes— 20,358 — 20,358 
Available for sale securities:
U.S. agency mortgage-backed securities— 62,795 — 62,795 
U.S. Treasury securities— 21,471 — 21,471 
Corporate debt securities— 12,484 — 12,484 
Asset-backed securities— 9,087 — 9,087 
Foreign government agency securities— 1,002 — 1,002 
U.S. state and municipal securities— 579 — 579 
Non-agency commercial mortgage-backed securities— 109 — 109 
Certificates of deposit— 100 — 100 
Other— 19 — 19 
Total available for sale securities— 107,646 — 107,646 
Other assets:
Other securities owned:
Equity, corporate debt, and other securities992 73 — 1,065 
Mutual funds and ETFs795 — — 795 
State and municipal debt obligations— 27 — 27 
U.S. Government securities— 26 — 26 
Total other securities owned1,787 126 — 1,913 
Total other assets1,787 126 — 1,913 
Total assets $16,360 $128,130 $— $144,490 
Accrued expenses and other liabilities:
Other$1,644 $89 $— $1,733 
Total accrued expenses and other liabilities1,644 89 — 1,733 
Total liabilities$1,644 $89 $— $1,733 
Fair Value of Other Financial Instruments
The following tables present the fair value hierarchy for other financial instruments:
March 31, 2024Carrying
Amount		Level 1Level 2Level 3Balance at
Fair Value
Assets     
Cash and cash equivalents$18,945 $18,945 $— $— $18,945 
Cash and investments segregated and on deposit for
  regulatory purposes		12,080 2,735 9,345 — 12,080 
Receivables from brokerage clients — net71,118 — 71,118 — 71,118 
Held to maturity securities:  
U.S. agency mortgage-backed securities156,371 — 142,340 — 142,340 
Total held to maturity securities156,371 — 142,340 — 142,340 
Bank loans — net:     
First Mortgages26,174 — 23,198 — 23,198 
HELOCs454 — 484 — 484 
Pledged asset lines13,841 — 13,841 — 13,841 
Other314 — 314 — 314 
Total bank loans — net40,783 — 37,837 — 37,837 
Other assets5,706 — 5,706 — 5,706 
Liabilities     
Bank deposits$269,460 $— $269,460 $— $269,460 
Payables to brokerage clients84,005 — 84,005 — 84,005 
Accrued expenses and other liabilities7,750 — 7,750 — 7,750 
Other short-term borrowings8,405 — 8,405 — 8,405 
Federal Home Loan Bank borrowings24,000 — 24,000 — 24,000 
Long-term debt22,790 — 21,727 — 21,727 
December 31, 2023Carrying
Amount		Level 1Level 2Level 3Balance at
Fair Value
Assets     
Cash and cash equivalents$28,764 $28,764 $— $— $28,764 
Cash and investments segregated and on deposit for
  regulatory purposes		11,438 2,628 8,810 — 11,438 
Receivables from brokerage clients — net68,629 — 68,629 — 68,629 
Held to maturity securities:    
U.S. agency mortgage-backed securities159,452 — 147,091 — 147,091 
Total held to maturity securities159,452 — 147,091 — 147,091 
Bank loans — net:     
First Mortgages26,121 — 23,226 — 23,226 
HELOCs477 — 508 — 508 
Pledged asset lines13,548 — 13,548 — 13,548 
Other293 — 293 — 293 
Total bank loans — net40,439 — 37,575 — 37,575 
Other assets4,960 — 4,960 — 4,960 
Liabilities     
Bank deposits$289,953 $— $289,953 $— $289,953 
Payables to brokerage clients84,786 — 84,786 — 84,786 
Accrued expenses and other liabilities7,609 — 7,609 — 7,609 
Other short-term borrowings6,553 — 6,553 — 6,553 
Federal Home Loan Bank borrowings26,400 — 26,400 — 26,400 
Long-term debt26,043 — 25,000 — 25,000