v3.26.1
Investment Securities
 3 Months Ended
Mar. 31, 2026
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, 2026Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
Available for sale securities    
U.S. agency mortgage-backed securities$42,843 $— $3,152 $39,691 
U.S. Treasury securities11,512 — 176 11,336 
Corporate debt securities (1)
5,142 — 357 4,785 
Asset-backed securities (2)
4,723 — 134 4,589 
U.S. state and municipal securities591 — 33 558 
Non-agency commercial mortgage-backed securities120 — 7 113 
Other21 — 3 18 
Unallocated portfolio layer method (PLM) fair value basis adjustments (3)
(2)— (2)— 
Total available for sale securities (4)
$64,950 $— $3,860 $61,090 
Held to maturity securities    
U.S. agency mortgage-backed securities$131,155 $1,291 $9,907 $122,539 
U.S. Treasury securities516 — 4 512 
Total held to maturity securities$131,671 $1,291 $9,911 $123,051 
December 31, 2025
Available for sale securities
U.S. agency mortgage-backed securities$44,585 $— $3,151 $41,434 
U.S. Treasury securities11,543 3 182 11,364 
Corporate debt securities (1)
5,027 — 360 4,667 
Asset-backed securities (2)
4,332 — 133 4,199 
U.S. state and municipal securities595 — 34 561 
Non-agency commercial mortgage-backed securities120 — 7 113 
Other21 — 2 19 
Unallocated PLM fair value basis adjustments (3)
2 — 2 — 
Total available for sale securities (4)
$66,225 $3 $3,871 $62,357 
Held to maturity securities
U.S. agency mortgage-backed securities$133,563 $1,732 $9,646 $125,649 
U.S. Treasury securities406 — — 406 
Total held to maturity securities$133,969 $1,732 $9,646 $126,055 
(1) As of March 31, 2026, approximately 28%, 26%, and 21% of total AFS corporate debt securities were issued by institutions in the information technology, consumer staples, and healthcare industries, respectively. As of December 31, 2025, approximately 28%, 27%, and 19% of total AFS corporate debt securities were issued by institutions in the information technology, consumer staples, and healthcare industries, respectively.
(2) As of March 31, 2026, approximately 62% and 21% of total AFS asset-backed securities were collateralized by Federal Family Education Loan Program asset-backed securities and credit card receivables, respectively. As of December 31, 2025, approximately 70% and 21% of total AFS asset-backed securities were collateralized by Federal Family Education Loan Program asset-backed securities and credit card receivables, respectively.
(3) This represents the amount of PLM fair value hedge basis adjustments related to AFS securities hedged in a closed portfolio. See Note 12 for more information on PLM hedge accounting.
(4) Included in cash and cash equivalents on the condensed consolidated balance sheets, but excluded from this table, is $291 million of AFS commercial paper and $2.0 billion of AFS U.S. Treasury securities as of March 31, 2026 and December 31, 2025, respectively. These holdings had maturities of three months or less at the time of acquisition, and an aggregate market value equal to amortized cost.

At March 31, 2026, our banking subsidiaries had pledged investment securities with a fair value of $12.9 billion (collateral value of $12.0 billion) as collateral to secure borrowing capacity on secured credit facilities with the FHLB (see Note 10). 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 fair value of $29.7 billion (collateral value of $28.6 billion) as collateral for this facility at March 31, 2026. The Company also pledges investment securities issued by federal agencies to secure certain trust deposits. The fair value and collateral value of these pledged securities was $1.6 billion at March 31, 2026.
At March 31, 2026, our banking subsidiaries had pledged HTM securities as collateral under repurchase agreements with external financial institutions and the FICC. HTM securities pledged were U.S. agency mortgage-backed securities with an aggregate amortized cost of $3.1 billion, of which $2.6 billion may be sold, repledged, or otherwise used by the counterparties. See Notes 10 and 13 for additional information on these repurchase agreements.

At March 31, 2026, the Company had pledged AFS securities consisting of U.S. Treasury securities with an aggregate fair value of $648 million as initial margin on interest rate swaps (see Notes 12 and 13). 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.

AFS investment securities with unrealized losses, aggregated by category and period of continuous unrealized loss, are as follows:
Less than 12 months12 months or longerTotal
March 31, 2026Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
Available for sale securities      
U.S. agency mortgage-backed securities (1)
$21 $— $39,669 $3,152 $39,690 $3,152 
U.S. Treasury securities5,720 15 5,314 161 11,034 176 
Corporate debt securities (1)
60 — 4,660 357 4,720 357 
Asset-backed securities629 2 3,845 132 4,474 134 
U.S. state and municipal securities31 2 527 31 558 33 
Non-agency commercial mortgage-backed securities— — 113 7 113 7 
Other— — 18 3 18 3 
Total (2)
$6,461 $19 $54,146 $3,843 $60,607 $3,862 
December 31, 2025   
Available for sale securities   
U.S. agency mortgage-backed securities (1)
$4 $— $41,394 $3,151 $41,398 $3,151 
U.S. Treasury securities (1)
1,558 — 5,424 182 6,982 182 
Corporate debt securities— — 4,667 360 4,667 360 
Asset-backed securities (1)
147 — 4,046 133 4,193 133 
U.S. state and municipal securities27 2 534 32 561 34 
Non-agency commercial mortgage-backed securities— — 113 7 113 7 
Other— — 19 2 19 2 
Total (2)
$1,736 $2 $56,197 $3,867 $57,933 $3,869 
(1) Amounts of unrealized losses less than 12 months 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 $(2) million and $2 million at March 31, 2026 and December 31, 2025, respectively.

At March 31, 2026, 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 2025 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, 2026 and the year ended December 31, 2025. None of the Company’s AFS securities held as of March 31, 2026 and December 31, 2025 had an allowance for credit losses. HTM securities as of March 31, 2026 and December 31, 2025 were U.S. agency mortgage-backed securities and U.S. Treasury securities and therefore had no allowance for credit losses because expected nonpayment of the amortized cost basis is zero.
The Company had $398 million and $386 million of accrued interest for AFS and HTM securities as of March 31, 2026 and December 31, 2025, 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, 2026, or for the year ended December 31, 2025.

The following table presents the Company’s estimated effective duration, which reflects anticipated future payments, by category at March 31, 2026:
In years
Estimated effective duration, exclusive of derivatives:
AFS investment securities portfolio
2.3
AFS and HTM investment securities portfolios3.7
Estimated effective duration, inclusive of derivatives (1):
AFS investment securities portfolio
2.0
AFS and HTM investment securities portfolios3.6
(1) See Note 12 for additional discussion of 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, 2026Within
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 $1,352 $6,654 $22,346 $9,339 $39,691 
U.S. Treasury securities4,610 6,524 202 — 11,336 
Corporate debt securities848 3,780 157 — 4,785 
Asset-backed securities124 1,391 358 2,716 4,589 
U.S. state and municipal securities3 293 258 4 558 
Non-agency commercial mortgage-backed securities— — — 113 113 
Other — — — 18 18 
Total fair value$6,937 $18,642 $23,321 $12,190 $61,090 
Total amortized cost (1)
$6,997 $19,610 $25,525 $12,820 $64,952 
Held to maturity securities     
U.S. agency mortgage-backed securities 
$583 $26,928 $21,139 $73,889 $122,539 
U.S. Treasury securities— 512 — — 512 
Total fair value$583 $27,440 $21,139 $73,889 $123,051 
Total amortized cost$583 $28,230 $21,747 $81,111 $131,671 
(1) For purposes of this table, the amortized cost of AFS securities excludes the unallocated PLM fair value hedge basis adjustments of $(2) million at March 31, 2026.

Proceeds and gross realized gains and losses from sales of AFS investment securities are as follows:
Three Months Ended
March 31,
20262025
Proceeds$1,541 $1,621 
Gross realized gains1 — 
Gross realized losses1 10