v3.26.1
Fair Values of Assets and Liabilities
 3 Months Ended
Mar. 31, 2026
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 derivatives, 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 deposit; 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 derivatives 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. See Note 12 for additional information on the Company’s interest rate derivatives.

For a description of the fair value hierarchy and Schwab’s fair value methodologies, see Item 8 – Note 2 in the 2025 Form 10-K. The Company did not adjust prices received from the primary independent third-party pricing service at March 31, 2026 or December 31, 2025.

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, 2026Level 1Level 2Level 3Balance at
Fair Value
Cash equivalents:
Money market funds$21,565 $— $— $21,565 
Commercial paper— 291 — 291 
Total cash equivalents21,565 291 — 21,856 
Investments segregated and on deposit for regulatory purposes:
U.S. government securities— 18,865 — 18,865 
Total investments segregated and on deposit for regulatory purposes— 18,865 — 18,865 
Available for sale securities:
U.S. agency mortgage-backed securities— 39,691 — 39,691 
U.S. Treasury securities— 11,336 — 11,336 
Corporate debt securities— 4,785 — 4,785 
Asset-backed securities— 4,589 — 4,589 
U.S. state and municipal securities— 558 — 558 
Non-agency commercial mortgage-backed securities— 113 — 113 
Other— 18 — 18 
Total available for sale securities— 61,090 — 61,090 
Other assets:
Other securities owned:
Equity, corporate debt, and other securities1,705 83 — 1,788 
Mutual funds and ETFs1,310 — — 1,310 
State and municipal debt obligations— 25 — 25 
U.S. government securities— 5 — 5 
Total other securities owned3,015 113 — 3,128 
Interest rate swaps— 1 — 1 
Total other assets3,015 114 — 3,129 
Total assets$24,580 $80,360 $— $104,940 
Accrued expenses and other liabilities:
Interest rate swaps$— $2 $— $2 
Other2,807 33 — 2,840 
Total accrued expenses and other liabilities2,807 35 — 2,842 
Total liabilities$2,807 $35 $— $2,842 
December 31, 2025Level 1Level 2Level 3Balance at
Fair Value
Cash equivalents:
Money market funds$13,947 $— $— $13,947 
U.S. Treasury securities— 1,989 — 1,989 
Total cash equivalents13,947 1,989 — 15,936 
Investments segregated and on deposit for regulatory purposes:
U.S. government securities— 23,555 — 23,555 
Total investments segregated and on deposit for regulatory purposes— 23,555 — 23,555 
Available for sale securities:
U.S. agency mortgage-backed securities— 41,434 — 41,434 
U.S. Treasury securities— 11,364 — 11,364 
Corporate debt securities— 4,667 — 4,667 
Asset-backed securities— 4,199 — 4,199 
U.S. state and municipal securities— 561 — 561 
Non-agency commercial mortgage-backed securities— 113 — 113 
Other— 19 — 19 
Total available for sale securities— 62,357 — 62,357 
Other assets:
Other securities owned:
Equity, corporate debt, and other securities1,704 84 — 1,788 
Mutual funds and ETFs1,314 — — 1,314 
State and municipal debt obligations— 45 — 45 
U.S. government securities— 15 — 15 
Total other securities owned3,018 144 — 3,162 
Interest rate swaps— 1 — 1 
Total other assets3,018 145 — 3,163 
Total assets $16,965 $88,046 $— $105,011 
Accrued expenses and other liabilities:
Interest rate swaps$— $1 $— $1 
Other2,804 40 — 2,844 
Total accrued expenses and other liabilities2,804 41 — 2,845 
Total liabilities$2,804 $41 $— $2,845 
Fair Value of Other Financial Instruments

The following tables present the fair value hierarchy for other financial instruments:
March 31, 2026Carrying
Amount		Level 1Level 2Level 3Balance at
Fair Value
Assets     
Cash and cash equivalents$23,119 $16,719 $6,400 $— $23,119 
Cash and investments segregated and on deposit for
  regulatory purposes		20,848 2,898 17,950 — 20,848 
Receivables from brokers, dealers, and clearing organizations11,808 — 11,808 — 11,808 
Receivables from brokerage clients — net106,172 — 106,172 — 106,172 
Held to maturity securities:  
U.S. agency mortgage-backed securities131,155 — 122,539 — 122,539 
U.S. Treasury securities516 — 512 — 512 
Total held to maturity securities131,671 — 123,051 — 123,051 
Bank loans — net:     
First Mortgages31,240 — 29,346 — 29,346 
HELOCs421 — 415 — 415 
Pledged asset lines28,790 — 28,790 — 28,790 
Other421 — 421 — 421 
Total bank loans — net60,872 — 58,972 — 58,972 
Other assets676 — 676 — 676 
Liabilities     
Bank deposits$253,041 $— $253,041 $— $253,041 
Payables to brokers, dealers, and clearing organizations28,107 — 28,107 — 28,107 
Payables to brokerage clients117,986 — 117,986 — 117,986 
Accrued expenses and other liabilities1,470 — 1,470 — 1,470 
Other short-term borrowings12,486 — 12,486 — 12,486 
Long-term debt20,456 — 20,292 — 20,292 
December 31, 2025Carrying
Amount		Level 1Level 2Level 3Balance at
Fair Value
Assets     
Cash and cash equivalents$30,094 $30,094 $— $— $30,094 
Cash and investments segregated and on deposit for
  regulatory purposes		19,290 2,470 16,820 — 19,290 
Receivables from brokers, dealers, and clearing organizations7,190 — 7,190 — 7,190 
Receivables from brokerage clients — net104,625 — 104,625 — 104,625 
Held to maturity securities:    
U.S. agency mortgage-backed securities133,563 — 125,649 — 125,649 
U.S. Treasury securities406 — 406 — 406 
Total held to maturity securities133,969 — 126,055 — 126,055 
Bank loans — net:     
First Mortgages30,456 — 28,612 — 28,612 
HELOCs426 — 431 — 431 
Pledged asset lines26,603 — 26,603 — 26,603 
Other470 — 470 — 470 
Total bank loans — net57,955 — 56,116 — 56,116 
Other assets766 — 766 — 766 
Liabilities     
Bank deposits$255,747 $— $255,747 $— $255,747 
Payables to brokers, dealers, and clearing organizations25,689 — 25,689 — 25,689 
Payables to brokerage clients116,341 — 116,341 — 116,341 
Accrued expenses and other liabilities1,359 — 1,359 — 1,359 
Other short-term borrowings6,913 — 6,913 — 6,913 
Federal Home Loan Bank borrowings1,850 — 1,850 — 1,850 
Long-term debt22,162 — 22,059 — 22,059