SCHWAB CHARLES CORPSCHW

SCHWAB CHARLES CORP Fair Value Disclosure

10-KFiled Feb 25, 20264 min read
Fair Values of Assets and Liabilities
For a description of the fair value hierarchy and Schwab’s fair value methodologies, including the use of independent third-party pricing services, see Note 2. The Company did not adjust prices received from the primary independent third-party pricing services at December 31, 2025 or 2024.

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:
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 
December 31, 2024Level 1Level 2Level 3Balance at
Fair Value
Cash equivalents:
Money market funds$11,005 $— $— $11,005 
Total cash equivalents11,005 — — 11,005 
Investments segregated and on deposit for regulatory purposes:
U.S. government securities— 25,740 — 25,740 
Total investments segregated and on deposit for regulatory purposes— 25,740 — 25,740 
Available for sale securities:
U.S. agency mortgage-backed securities— 51,833 — 51,833 
U.S. Treasury securities— 14,469 — 14,469 
Corporate debt securities— 9,579 — 9,579 
Asset-backed securities— 5,910 — 5,910 
U.S. state and municipal securities— 549 — 549 
Foreign government agency securities— 527 — 527 
Non-agency commercial mortgage-backed securities— 109 — 109 
Other— 18 — 18 
Total available for sale securities— 82,994 — 82,994 
Other assets:
Other securities owned:
Equity, corporate debt, and other securities1,395 73 — 1,468 
Mutual funds and ETFs1,019 — — 1,019 
State and municipal debt obligations— 38 — 38 
U.S. government securities— 18 — 18 
Total other securities owned2,414 129 — 2,543 
Total other assets2,414 129 — 2,543 
Total assets$13,419 $108,863 $— $122,282 
Accrued expenses and other liabilities:
Other$2,161 $37 $— $2,198 
Total accrued expenses and other liabilities2,161 37 — 2,198 
Total liabilities$2,161 $37 $— $2,198 
 
Fair Value of Other Financial Instruments

The following tables present the fair value hierarchy for other financial instruments:
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 purposes19,290 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 

December 31, 2024Carrying
Amount		Level 1Level 2Level 3Balance at
Fair Value
Assets
Cash and cash equivalents$31,078 $31,078 $— $— $31,078 
Cash and investments segregated and on deposit for regulatory purposes12,416 2,401 10,015 — 12,416 
Receivables from brokers, dealers, and clearing organizations2,440 — 2,440 — 2,440 
Receivables from brokerage clients — net85,343 — 85,343 — 85,343 
Held to maturity securities:
U.S. agency mortgage-backed securities146,453 — 132,605 — 132,605 
Total held to maturity securities146,453 — 132,605 — 132,605 
Bank loans — net:
First Mortgages27,375 — 24,336 — 24,336 
HELOCs423 — 441 — 441 
Pledged asset lines17,024 — 17,024 — 17,024 
Other393 — 393 — 393 
Total bank loans — net45,215 — 42,194 — 42,194 
Other assets1,405 — 1,405 — 1,405 
Liabilities
Bank deposits$259,121 $— $259,121 $— $259,121 
Payables to brokers, dealers, and clearing organizations13,336 — 13,336 — 13,336 
Payables to brokerage clients101,559 — 101,559 — 101,559 
Accrued expenses and other liabilities1,076 — 1,076 — 1,076 
Other short-term borrowings5,999 — 5,999 — 5,999 
Federal Home Loan Bank borrowings16,700 — 16,700 16,700 
Long-term debt22,379 — 21,621 — 21,621 
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Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 26, 2025
2023Feb 23, 2024
2022Feb 24, 2023
2021Feb 24, 2022
2020Feb 24, 2021
2019Feb 26, 2020
2018Feb 22, 2019
2017Feb 22, 2018
2016Feb 23, 2017
2015Feb 24, 2016

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.

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