false2023FYSCHWAB CHARLES CORP0000316709P3YP3Yhttp://fasb.org/us-gaap/2023#OtherExpenseshttp://fasb.org/us-gaap/2023#OtherAssetshttp://fasb.org/us-gaap/2023#OtherAssetshttp://fasb.org/us-gaap/2023#PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortizationhttp://fasb.org/us-gaap/2023#PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortizationhttp://fasb.org/us-gaap/2023#AccruedLiabilitiesCurrentAndNoncurrenthttp://fasb.org/us-gaap/2023#AccruedLiabilitiesCurrentAndNoncurrenthttp://fasb.org/us-gaap/2023#LongTermDebtAndCapitalLeaseObligationshttp://fasb.org/us-gaap/2023#LongTermDebtAndCapitalLeaseObligations1.002.502.501.001.00P1YP1Y35441732900003167092023-01-012023-12-310000316709us-gaap:CommonStockMember2023-01-012023-12-310000316709us-gaap:SeriesDPreferredStockMember2023-01-012023-12-310000316709schw:SeriesJPreferredStockMember2023-01-012023-12-3100003167092023-06-30iso4217:USD0000316709us-gaap:CommonStockMember2024-01-31xbrli:shares0000316709us-gaap:NonvotingCommonStockMember2024-01-3100003167092022-01-012022-12-3100003167092021-01-012021-12-310000316709schw:AssetManagementAndAdministrationServiceMember2023-01-012023-12-310000316709schw:AssetManagementAndAdministrationServiceMember2022-01-012022-12-310000316709schw:AssetManagementAndAdministrationServiceMember2021-01-012021-12-310000316709schw:TradingRevenueServiceMember2023-01-012023-12-310000316709schw:TradingRevenueServiceMember2022-01-012022-12-310000316709schw:TradingRevenueServiceMember2021-01-012021-12-310000316709schw:BankDepositAccountFeesMember2023-01-012023-12-310000316709schw:BankDepositAccountFeesMember2022-01-012022-12-310000316709schw:BankDepositAccountFeesMember2021-01-012021-12-310000316709us-gaap:ProductAndServiceOtherMember2023-01-012023-12-310000316709us-gaap:ProductAndServiceOtherMember2022-01-012022-12-310000316709us-gaap:ProductAndServiceOtherMember2021-01-012021-12-31iso4217:USDxbrli:shares00003167092023-12-3100003167092022-12-310000316709us-gaap:AssetPledgedAsCollateralMember2023-12-310000316709us-gaap:AssetPledgedAsCollateralMember2022-12-310000316709us-gaap:CommonStockMember2023-12-310000316709us-gaap:CommonStockMember2022-12-310000316709us-gaap:NonvotingCommonStockMember2023-12-310000316709us-gaap:NonvotingCommonStockMember2022-12-310000316709us-gaap:PreferredStockMember2020-12-310000316709us-gaap:CommonStockMemberus-gaap:CommonStockMember2020-12-310000316709us-gaap:NonvotingCommonStockMemberus-gaap:CommonStockMember2020-12-310000316709us-gaap:AdditionalPaidInCapitalMember2020-12-310000316709us-gaap:RetainedEarningsMember2020-12-310000316709us-gaap:TreasuryStockCommonMember2020-12-310000316709us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-3100003167092020-12-310000316709us-gaap:RetainedEarningsMember2021-01-012021-12-310000316709us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-12-310000316709us-gaap:PreferredStockMember2021-01-012021-12-310000316709us-gaap:AdditionalPaidInCapitalMember2021-01-012021-12-310000316709us-gaap:TreasuryStockCommonMember2021-01-012021-12-310000316709us-gaap:PreferredStockMember2021-12-310000316709us-gaap:CommonStockMemberus-gaap:CommonStockMember2021-12-310000316709us-gaap:NonvotingCommonStockMemberus-gaap:CommonStockMember2021-12-310000316709us-gaap:AdditionalPaidInCapitalMember2021-12-310000316709us-gaap:RetainedEarningsMember2021-12-310000316709us-gaap:TreasuryStockCommonMember2021-12-310000316709us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-3100003167092021-12-310000316709us-gaap:RetainedEarningsMember2022-01-012022-12-310000316709us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-12-310000316709us-gaap:PreferredStockMember2022-01-012022-12-310000316709us-gaap:CommonStockMemberus-gaap:TreasuryStockCommonMember2022-01-012022-12-310000316709us-gaap:CommonStockMember2022-01-012022-12-310000316709us-gaap:CommonStockMemberus-gaap:CommonStockMember2022-01-012022-12-310000316709us-gaap:NonvotingCommonStockMemberus-gaap:CommonStockMember2022-01-012022-12-310000316709us-gaap:NonvotingCommonStockMemberus-gaap:TreasuryStockCommonMember2022-01-012022-12-310000316709us-gaap:NonvotingCommonStockMember2022-01-012022-12-310000316709us-gaap:AdditionalPaidInCapitalMember2022-01-012022-12-310000316709us-gaap:TreasuryStockCommonMember2022-01-012022-12-310000316709us-gaap:PreferredStockMember2022-12-310000316709us-gaap:CommonStockMemberus-gaap:CommonStockMember2022-12-310000316709us-gaap:NonvotingCommonStockMemberus-gaap:CommonStockMember2022-12-310000316709us-gaap:AdditionalPaidInCapitalMember2022-12-310000316709us-gaap:RetainedEarningsMember2022-12-310000316709us-gaap:TreasuryStockCommonMember2022-12-310000316709us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310000316709us-gaap:RetainedEarningsMember2023-01-012023-12-310000316709us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-12-310000316709us-gaap:PreferredStockMember2023-01-012023-12-310000316709us-gaap:TreasuryStockCommonMember2023-01-012023-12-310000316709us-gaap:AdditionalPaidInCapitalMember2023-01-012023-12-310000316709us-gaap:PreferredStockMember2023-12-310000316709us-gaap:CommonStockMemberus-gaap:CommonStockMember2023-12-310000316709us-gaap:NonvotingCommonStockMemberus-gaap:CommonStockMember2023-12-310000316709us-gaap:AdditionalPaidInCapitalMember2023-12-310000316709us-gaap:RetainedEarningsMember2023-12-310000316709us-gaap:TreasuryStockCommonMember2023-12-310000316709us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-31schw:officeBranchschw:stateschw:segmentschw:receivableClass0000316709schw:EquipmentAndFurnitureMembersrt:MinimumMember2023-12-310000316709srt:MaximumMemberschw:EquipmentAndFurnitureMember2023-12-310000316709us-gaap:BuildingMember2023-12-310000316709schw:BuildingImprovementsAndLandImprovementsMember2023-12-310000316709us-gaap:SoftwareAndSoftwareDevelopmentCostsMembersrt:MinimumMember2023-12-310000316709srt:MaximumMemberus-gaap:SoftwareAndSoftwareDevelopmentCostsMember2023-12-31schw:thirdPartyPricingSource0000316709us-gaap:InvestmentPerformanceMember2023-01-012023-12-310000316709us-gaap:InvestmentPerformanceMember2022-01-012022-12-310000316709us-gaap:InvestmentPerformanceMember2021-01-012021-12-310000316709us-gaap:InvestmentAdviceMember2023-01-012023-12-310000316709us-gaap:InvestmentAdviceMember2022-01-012022-12-310000316709us-gaap:InvestmentAdviceMember2021-01-012021-12-310000316709us-gaap:FinancialServiceOtherMember2023-01-012023-12-310000316709us-gaap:FinancialServiceOtherMember2022-01-012022-12-310000316709us-gaap:FinancialServiceOtherMember2021-01-012021-12-310000316709schw:CommissionsMember2023-01-012023-12-310000316709schw:CommissionsMember2022-01-012022-12-310000316709schw:CommissionsMember2021-01-012021-12-310000316709schw:OrderFlowRevenueMember2023-01-012023-12-310000316709schw:OrderFlowRevenueMember2022-01-012022-12-310000316709schw:OrderFlowRevenueMember2021-01-012021-12-310000316709schw:PrincipalTransactionsMember2023-01-012023-12-310000316709schw:PrincipalTransactionsMember2022-01-012022-12-310000316709schw:PrincipalTransactionsMember2021-01-012021-12-310000316709us-gaap:RevenueFromContractWithCustomerMemberstpr:CAus-gaap:GeographicConcentrationRiskMemberschw:TDAmeritradeMember2023-01-012023-12-31xbrli:pure0000316709us-gaap:RevenueFromContractWithCustomerMemberstpr:CAus-gaap:GeographicConcentrationRiskMemberschw:TDAmeritradeMember2022-01-012022-12-310000316709us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2023-12-310000316709us-gaap:USTreasurySecuritiesMember2023-12-310000316709us-gaap:CorporateDebtSecuritiesMember2023-12-310000316709us-gaap:AssetBackedSecuritiesMember2023-12-310000316709us-gaap:ForeignGovernmentDebtSecuritiesMember2023-12-310000316709us-gaap:USStatesAndPoliticalSubdivisionsMember2023-12-310000316709schw:CommercialMortageBackedSecuritiesIssuedByPrivateEnterprisesMember2023-12-310000316709us-gaap:CertificatesOfDepositMember2023-12-310000316709us-gaap:OtherDebtSecuritiesMember2023-12-310000316709us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2022-12-310000316709us-gaap:USTreasurySecuritiesMember2022-12-310000316709us-gaap:AssetBackedSecuritiesMember2022-12-310000316709us-gaap:CorporateDebtSecuritiesMember2022-12-310000316709us-gaap:CertificatesOfDepositMember2022-12-310000316709us-gaap:ForeignGovernmentDebtSecuritiesMember2022-12-310000316709us-gaap:USStatesAndPoliticalSubdivisionsMember2022-12-310000316709schw:CommercialMortageBackedSecuritiesIssuedByPrivateEnterprisesMember2022-12-310000316709us-gaap:OtherDebtSecuritiesMember2022-12-310000316709schw:CorporateDebtSecuritiesIssuedByFinancialServicesIndustryMember2023-12-310000316709schw:CorporateDebtSecuritiesIssuedByFinancialServicesIndustryMember2022-12-310000316709us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMemberschw:FinancialInstrumentConcentrationRiskMemberus-gaap:AssetBackedSecuritiesMember2023-01-012023-12-310000316709us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMemberschw:FinancialInstrumentConcentrationRiskMemberus-gaap:AssetBackedSecuritiesMember2022-01-012022-12-310000316709schw:FinancialInstrumentConcentrationRiskMemberus-gaap:AssetBackedSecuritiesMemberus-gaap:CollateralizedCreditCardSecuritiesMember2023-01-012023-12-310000316709schw:FinancialInstrumentConcentrationRiskMemberus-gaap:AssetBackedSecuritiesMemberus-gaap:CollateralizedCreditCardSecuritiesMember2022-01-012022-12-310000316709us-gaap:CashAndCashEquivalentsMemberus-gaap:CommercialPaperMember2022-12-310000316709us-gaap:CashAndCashEquivalentsMemberus-gaap:CommercialPaperMember2023-12-310000316709us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2022-01-012022-12-310000316709us-gaap:FederalHomeLoanBankAdvancesMember2023-12-310000316709us-gaap:FederalReserveBankAdvancesMember2023-12-310000316709schw:FederalReserveBankTermFundingProgramBTFPMember2023-12-310000316709us-gaap:DepositsMember2023-12-310000316709us-gaap:AssetPledgedAsCollateralMemberus-gaap:SecuritiesSoldUnderAgreementsToRepurchaseMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2023-12-310000316709us-gaap:AssetPledgedAsCollateralMemberus-gaap:InterestRateSwapMember2023-12-310000316709us-gaap:FinancialAssetNotPastDueMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:FirstMortgageMember2023-12-310000316709us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:FirstMortgageMember2023-12-310000316709us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:FirstMortgageMember2023-12-310000316709us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:FirstMortgageMember2023-12-310000316709us-gaap:FinancialAssetPastDueMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:FirstMortgageMember2023-12-310000316709us-gaap:FirstMortgageMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310000316709us-gaap:HomeEquityMemberus-gaap:FinancialAssetNotPastDueMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310000316709us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:HomeEquityMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310000316709us-gaap:HomeEquityMemberus-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310000316709us-gaap:HomeEquityMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310000316709us-gaap:HomeEquityMemberus-gaap:FinancialAssetPastDueMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310000316709us-gaap:HomeEquityMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310000316709us-gaap:FinancialAssetNotPastDueMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310000316709us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310000316709us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310000316709us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310000316709us-gaap:FinancialAssetPastDueMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310000316709us-gaap:ResidentialPortfolioSegmentMember2023-12-310000316709schw:PledgedAssetLinesPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2023-12-310000316709schw:PledgedAssetLinesPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310000316709schw:PledgedAssetLinesPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310000316709schw:PledgedAssetLinesPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310000316709schw:PledgedAssetLinesPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2023-12-310000316709schw:PledgedAssetLinesPortfolioSegmentMember2023-12-310000316709us-gaap:FinancialAssetNotPastDueMemberschw:OtherPortfolioSegmentMember2023-12-310000316709us-gaap:FinancingReceivables30To59DaysPastDueMemberschw:OtherPortfolioSegmentMember2023-12-310000316709schw:OtherPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310000316709us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberschw:OtherPortfolioSegmentMember2023-12-310000316709us-gaap:FinancialAssetPastDueMemberschw:OtherPortfolioSegmentMember2023-12-310000316709schw:OtherPortfolioSegmentMember2023-12-310000316709us-gaap:FinancialAssetNotPastDueMember2023-12-310000316709us-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310000316709us-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310000316709us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310000316709us-gaap:FinancialAssetPastDueMember2023-12-310000316709us-gaap:FinancialAssetNotPastDueMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:FirstMortgageMember2022-12-310000316709us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:FirstMortgageMember2022-12-310000316709us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:FirstMortgageMember2022-12-310000316709us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:FirstMortgageMember2022-12-310000316709us-gaap:FinancialAssetPastDueMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:FirstMortgageMember2022-12-310000316709us-gaap:FirstMortgageMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310000316709us-gaap:HomeEquityMemberus-gaap:FinancialAssetNotPastDueMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310000316709us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:HomeEquityMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310000316709us-gaap:HomeEquityMemberus-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310000316709us-gaap:HomeEquityMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310000316709us-gaap:HomeEquityMemberus-gaap:FinancialAssetPastDueMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310000316709us-gaap:HomeEquityMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310000316709us-gaap:FinancialAssetNotPastDueMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310000316709us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310000316709us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310000316709us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310000316709us-gaap:FinancialAssetPastDueMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310000316709us-gaap:ResidentialPortfolioSegmentMember2022-12-310000316709schw:PledgedAssetLinesPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2022-12-310000316709schw:PledgedAssetLinesPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-12-310000316709schw:PledgedAssetLinesPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-12-310000316709schw:PledgedAssetLinesPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-12-310000316709schw:PledgedAssetLinesPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2022-12-310000316709schw:PledgedAssetLinesPortfolioSegmentMember2022-12-310000316709us-gaap:FinancialAssetNotPastDueMemberschw:OtherPortfolioSegmentMember2022-12-310000316709us-gaap:FinancingReceivables30To59DaysPastDueMemberschw:OtherPortfolioSegmentMember2022-12-310000316709schw:OtherPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-12-310000316709us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberschw:OtherPortfolioSegmentMember2022-12-310000316709us-gaap:FinancialAssetPastDueMemberschw:OtherPortfolioSegmentMember2022-12-310000316709schw:OtherPortfolioSegmentMember2022-12-310000316709us-gaap:FinancialAssetNotPastDueMember2022-12-310000316709us-gaap:FinancingReceivables30To59DaysPastDueMember2022-12-310000316709us-gaap:FinancingReceivables60To89DaysPastDueMember2022-12-310000316709us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-12-310000316709us-gaap:FinancialAssetPastDueMember2022-12-310000316709stpr:CAschw:LoansGeographicAreaMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:GeographicConcentrationRiskMember2023-01-012023-12-310000316709stpr:CAschw:LoansGeographicAreaMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:GeographicConcentrationRiskMember2022-01-012022-12-310000316709us-gaap:FirstMortgageMemberus-gaap:ResidentialPortfolioSegmentMember2023-01-012023-12-310000316709us-gaap:HomeEquityMemberus-gaap:ResidentialPortfolioSegmentMember2023-01-012023-12-310000316709us-gaap:ResidentialPortfolioSegmentMember2023-01-012023-12-310000316709schw:PledgedAssetLinesPortfolioSegmentMember2023-01-012023-12-310000316709schw:OtherPortfolioSegmentMember2023-01-012023-12-310000316709us-gaap:FirstMortgageMemberus-gaap:ResidentialPortfolioSegmentMember2021-12-310000316709us-gaap:HomeEquityMemberus-gaap:ResidentialPortfolioSegmentMember2021-12-310000316709us-gaap:ResidentialPortfolioSegmentMember2021-12-310000316709schw:PledgedAssetLinesPortfolioSegmentMember2021-12-310000316709schw:OtherPortfolioSegmentMember2021-12-310000316709us-gaap:FirstMortgageMemberus-gaap:ResidentialPortfolioSegmentMember2022-01-012022-12-310000316709us-gaap:HomeEquityMemberus-gaap:ResidentialPortfolioSegmentMember2022-01-012022-12-310000316709us-gaap:ResidentialPortfolioSegmentMember2022-01-012022-12-310000316709schw:PledgedAssetLinesPortfolioSegmentMember2022-01-012022-12-310000316709schw:OtherPortfolioSegmentMember2022-01-012022-12-310000316709us-gaap:FirstMortgageMemberus-gaap:ResidentialPortfolioSegmentMember2020-12-310000316709us-gaap:HomeEquityMemberus-gaap:ResidentialPortfolioSegmentMember2020-12-310000316709us-gaap:ResidentialPortfolioSegmentMember2020-12-310000316709schw:PledgedAssetLinesPortfolioSegmentMember2020-12-310000316709schw:OtherPortfolioSegmentMember2020-12-310000316709us-gaap:FirstMortgageMemberus-gaap:ResidentialPortfolioSegmentMember2021-01-012021-12-310000316709us-gaap:HomeEquityMemberus-gaap:ResidentialPortfolioSegmentMember2021-01-012021-12-310000316709us-gaap:ResidentialPortfolioSegmentMember2021-01-012021-12-310000316709schw:PledgedAssetLinesPortfolioSegmentMember2021-01-012021-12-310000316709schw:OtherPortfolioSegmentMember2021-01-012021-12-310000316709us-gaap:FinancialAssetOriginatedMemberus-gaap:FirstMortgageMemberschw:OriginationFicoScoreBelow620Member2023-12-310000316709us-gaap:HomeEquityMemberus-gaap:FinancialAssetOriginatedMemberschw:OriginationFicoScoreBelow620Member2023-12-310000316709us-gaap:FinancialAssetOriginatedMemberus-gaap:FirstMortgageMemberschw:OriginationFicoScore620Through679Member2023-12-310000316709us-gaap:HomeEquityMemberus-gaap:FinancialAssetOriginatedMemberschw:OriginationFicoScore620Through679Member2023-12-310000316709us-gaap:FinancialAssetOriginatedMemberschw:OriginationFicoScore680Through739Memberus-gaap:FirstMortgageMember2023-12-310000316709us-gaap:HomeEquityMemberus-gaap:FinancialAssetOriginatedMemberschw:OriginationFicoScore680Through739Member2023-12-310000316709schw:OriginationFicoScore740AndAboveMemberus-gaap:FinancialAssetOriginatedMemberus-gaap:FirstMortgageMember2023-12-310000316709us-gaap:HomeEquityMemberschw:OriginationFicoScore740AndAboveMemberus-gaap:FinancialAssetOriginatedMember2023-12-310000316709us-gaap:FinancialAssetOriginatedMemberus-gaap:FirstMortgageMember2023-12-310000316709us-gaap:HomeEquityMemberus-gaap:FinancialAssetOriginatedMember2023-12-310000316709schw:OriginationLoanToValueRatio70AndBelowMemberus-gaap:FinancialAssetOriginatedMemberus-gaap:FirstMortgageMember2023-12-310000316709us-gaap:HomeEquityMemberschw:OriginationLoanToValueRatio70AndBelowMemberus-gaap:FinancialAssetOriginatedMember2023-12-310000316709us-gaap:FinancialAssetOriginatedMemberus-gaap:FirstMortgageMemberschw:OriginationLoanToValueRatioGreaterThan70Through90Member2023-12-310000316709us-gaap:HomeEquityMemberus-gaap:FinancialAssetOriginatedMemberschw:OriginationLoanToValueRatioGreaterThan70Through90Member2023-12-310000316709us-gaap:FinancialAssetOriginatedMemberschw:OriginationLoanToValueRatioGreaterThan90Through100Memberus-gaap:FirstMortgageMember2023-12-310000316709us-gaap:HomeEquityMemberus-gaap:FinancialAssetOriginatedMemberschw:OriginationLoanToValueRatioGreaterThan90Through100Member2023-12-310000316709schw:UpdatedFICOScoreBelow620Memberus-gaap:FirstMortgageMember2023-12-310000316709schw:UpdatedFICOScoreBelow620Memberus-gaap:HomeEquityMember2023-12-310000316709schw:UpdatedFICOScore620Through679Memberus-gaap:FirstMortgageMember2023-12-310000316709us-gaap:HomeEquityMemberschw:UpdatedFICOScore620Through679Member2023-12-310000316709schw:UpdatedFICOScore680Through739Memberus-gaap:FirstMortgageMember2023-12-310000316709us-gaap:HomeEquityMemberschw:UpdatedFICOScore680Through739Member2023-12-310000316709schw:UpdatedFICOScore740AndAboveMemberus-gaap:FirstMortgageMember2023-12-310000316709schw:UpdatedFICOScore740AndAboveMemberus-gaap:HomeEquityMember2023-12-310000316709us-gaap:FirstMortgageMember2023-12-310000316709us-gaap:HomeEquityMember2023-12-310000316709schw:EstimatedCurrentLoanToValueRatio70AndBelowMemberus-gaap:FirstMortgageMember2023-12-310000316709us-gaap:HomeEquityMemberschw:EstimatedCurrentLoanToValueRatio70AndBelowMember2023-12-310000316709us-gaap:FirstMortgageMemberschw:EstimatedCurrentLoanToValueRatioGreaterThan70Through90Member2023-12-310000316709us-gaap:HomeEquityMemberschw:EstimatedCurrentLoanToValueRatioGreaterThan70Through90Member2023-12-310000316709us-gaap:FirstMortgageMemberschw:EstimatedCurrentLoanToValueRatioGreaterThan90Through100Member2023-12-310000316709us-gaap:HomeEquityMemberschw:EstimatedCurrentLoanToValueRatioGreaterThan90Through100Member2023-12-310000316709schw:EstimatedCurrentLoanToValueRatioGreaterThan100Memberus-gaap:FirstMortgageMember2023-12-310000316709us-gaap:HomeEquityMemberschw:EstimatedCurrentLoanToValueRatioGreaterThan100Member2023-12-310000316709us-gaap:FinancialAssetOriginatedMemberus-gaap:FirstMortgageMemberschw:OriginationFicoScoreBelow620Member2022-12-310000316709us-gaap:HomeEquityMemberus-gaap:FinancialAssetOriginatedMemberschw:OriginationFicoScoreBelow620Member2022-12-310000316709us-gaap:FinancialAssetOriginatedMemberus-gaap:FirstMortgageMemberschw:OriginationFicoScore620Through679Member2022-12-310000316709us-gaap:HomeEquityMemberus-gaap:FinancialAssetOriginatedMemberschw:OriginationFicoScore620Through679Member2022-12-310000316709us-gaap:FinancialAssetOriginatedMemberschw:OriginationFicoScore680Through739Memberus-gaap:FirstMortgageMember2022-12-310000316709us-gaap:HomeEquityMemberus-gaap:FinancialAssetOriginatedMemberschw:OriginationFicoScore680Through739Member2022-12-310000316709schw:OriginationFicoScore740AndAboveMemberus-gaap:FinancialAssetOriginatedMemberus-gaap:FirstMortgageMember2022-12-310000316709us-gaap:HomeEquityMemberschw:OriginationFicoScore740AndAboveMemberus-gaap:FinancialAssetOriginatedMember2022-12-310000316709us-gaap:FinancialAssetOriginatedMemberus-gaap:FirstMortgageMember2022-12-310000316709us-gaap:HomeEquityMemberus-gaap:FinancialAssetOriginatedMember2022-12-310000316709schw:OriginationLoanToValueRatio70AndBelowMemberus-gaap:FinancialAssetOriginatedMemberus-gaap:FirstMortgageMember2022-12-310000316709us-gaap:HomeEquityMemberschw:OriginationLoanToValueRatio70AndBelowMemberus-gaap:FinancialAssetOriginatedMember2022-12-310000316709us-gaap:FinancialAssetOriginatedMemberus-gaap:FirstMortgageMemberschw:OriginationLoanToValueRatioGreaterThan70Through90Member2022-12-310000316709us-gaap:HomeEquityMemberus-gaap:FinancialAssetOriginatedMemberschw:OriginationLoanToValueRatioGreaterThan70Through90Member2022-12-310000316709us-gaap:FinancialAssetOriginatedMemberschw:OriginationLoanToValueRatioGreaterThan90Through100Memberus-gaap:FirstMortgageMember2022-12-310000316709us-gaap:HomeEquityMemberus-gaap:FinancialAssetOriginatedMemberschw:OriginationLoanToValueRatioGreaterThan90Through100Member2022-12-310000316709schw:UpdatedFICOScoreBelow620Memberus-gaap:FirstMortgageMember2022-12-310000316709schw:UpdatedFICOScoreBelow620Memberus-gaap:HomeEquityMember2022-12-310000316709schw:UpdatedFICOScore620Through679Memberus-gaap:FirstMortgageMember2022-12-310000316709us-gaap:HomeEquityMemberschw:UpdatedFICOScore620Through679Member2022-12-310000316709schw:UpdatedFICOScore680Through739Memberus-gaap:FirstMortgageMember2022-12-310000316709us-gaap:HomeEquityMemberschw:UpdatedFICOScore680Through739Member2022-12-310000316709schw:UpdatedFICOScore740AndAboveMemberus-gaap:FirstMortgageMember2022-12-310000316709schw:UpdatedFICOScore740AndAboveMemberus-gaap:HomeEquityMember2022-12-310000316709us-gaap:FirstMortgageMember2022-12-310000316709us-gaap:HomeEquityMember2022-12-310000316709schw:EstimatedCurrentLoanToValueRatio70AndBelowMemberus-gaap:FirstMortgageMember2022-12-310000316709us-gaap:HomeEquityMemberschw:EstimatedCurrentLoanToValueRatio70AndBelowMember2022-12-310000316709us-gaap:FirstMortgageMemberschw:EstimatedCurrentLoanToValueRatioGreaterThan70Through90Member2022-12-310000316709us-gaap:HomeEquityMemberschw:EstimatedCurrentLoanToValueRatioGreaterThan70Through90Member2022-12-310000316709us-gaap:FirstMortgageMemberschw:EstimatedCurrentLoanToValueRatioGreaterThan90Through100Member2022-12-310000316709us-gaap:HomeEquityMemberschw:EstimatedCurrentLoanToValueRatioGreaterThan90Through100Member2022-12-310000316709schw:EstimatedCurrentLoanToValueRatioGreaterThan100Memberus-gaap:FirstMortgageMember2022-12-310000316709us-gaap:HomeEquityMemberschw:EstimatedCurrentLoanToValueRatioGreaterThan100Member2022-12-310000316709srt:MinimumMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:FirstMortgageMember2023-01-012023-12-310000316709srt:MaximumMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:FirstMortgageMember2023-01-012023-12-310000316709schw:HomeEquitySecuredBySecondLiensMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310000316709us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2023-12-310000316709us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2022-12-310000316709us-gaap:BuildingMember2022-12-310000316709us-gaap:TechnologyEquipmentMember2023-12-310000316709us-gaap:TechnologyEquipmentMember2022-12-310000316709us-gaap:LeaseholdImprovementsMember2023-12-310000316709us-gaap:LeaseholdImprovementsMember2022-12-310000316709us-gaap:LandMember2023-12-310000316709us-gaap:LandMember2022-12-310000316709us-gaap:ConstructionInProgressMember2023-12-310000316709us-gaap:ConstructionInProgressMember2022-12-310000316709us-gaap:PropertyPlantAndEquipmentOtherTypesMember2023-12-310000316709us-gaap:PropertyPlantAndEquipmentOtherTypesMember2022-12-310000316709schw:InvestorServicesMember2021-12-310000316709schw:AdvisorServicesMember2021-12-310000316709schw:InvestorServicesMember2022-01-012022-12-310000316709schw:AdvisorServicesMember2022-01-012022-12-310000316709schw:InvestorServicesMember2022-12-310000316709schw:AdvisorServicesMember2022-12-310000316709schw:InvestorServicesMember2023-01-012023-12-310000316709schw:AdvisorServicesMember2023-01-012023-12-310000316709schw:InvestorServicesMember2023-12-310000316709schw:AdvisorServicesMember2023-12-310000316709us-gaap:CustomerRelationshipsMember2023-12-310000316709us-gaap:CustomerRelationshipsMember2022-12-310000316709us-gaap:TechnologyBasedIntangibleAssetsMember2023-12-310000316709us-gaap:TechnologyBasedIntangibleAssetsMember2022-12-310000316709us-gaap:TradeNamesMember2023-12-310000316709us-gaap:TradeNamesMember2022-12-310000316709us-gaap:FederalHomeLoanBankAdvancesMember2023-12-310000316709us-gaap:FederalHomeLoanBankAdvancesMember2022-12-310000316709us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2023-01-012023-12-310000316709us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2022-01-012022-12-310000316709us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2021-01-012021-12-310000316709schw:LowIncomeHousingTaxCreditInvestmentsMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2023-12-310000316709schw:LowIncomeHousingTaxCreditInvestmentsMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2022-12-310000316709schw:OtherNonLowIncomeHousingTaxCreditInvestmentsMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2023-12-310000316709schw:OtherNonLowIncomeHousingTaxCreditInvestmentsMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2022-12-310000316709us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2023-12-310000316709us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2022-12-310000316709us-gaap:SeniorNotesMemberschw:TDAmeritradeHoldingMember2021-12-310000316709schw:TDAmeritradeHoldingMemberus-gaap:SeniorNotesMember2021-01-012021-12-310000316709schw:TDAmeritradeHoldingMemberus-gaap:SeniorNotesMember2021-12-310000316709us-gaap:SeniorNotesMemberschw:TDAmeritradeHoldingMember2023-12-31schw:debt_instrument0000316709us-gaap:SeniorNotesMemberschw:SeniorNotesDue2023Member2023-12-310000316709us-gaap:SeniorNotesMemberschw:SeniorNotesDue2023Member2022-12-310000316709us-gaap:SeniorNotesMemberschw:SeniorNotesDueFebruary2024Member2023-12-310000316709us-gaap:SeniorNotesMemberschw:SeniorNotesDueFebruary2024Member2022-12-310000316709us-gaap:SeniorNotesMemberschw:SeniorNotesDueMarch2024Member2023-12-310000316709us-gaap:SeniorNotesMemberschw:SeniorNotesDueMarch2024Member2022-12-310000316709schw:SeniorNotesDueApril2024Memberus-gaap:SeniorNotesMember2023-12-310000316709schw:SeniorNotesDueApril2024Memberus-gaap:SeniorNotesMember2022-12-310000316709us-gaap:SeniorNotesMemberschw:SeniorNotesDueMarch102025Member2023-12-310000316709us-gaap:SeniorNotesMemberschw:SeniorNotesDueMarch102025Member2022-12-310000316709us-gaap:SeniorNotesMemberschw:SeniorNotesDueMarch242025Member2023-12-310000316709us-gaap:SeniorNotesMemberschw:SeniorNotesDueMarch242025Member2022-12-310000316709schw:SeniorNotesDueApril2025Memberus-gaap:SeniorNotesMember2023-12-310000316709schw:SeniorNotesDueApril2025Memberus-gaap:SeniorNotesMember2022-12-310000316709us-gaap:SeniorNotesMemberschw:SeniorNotesDueMay2025Member2023-12-310000316709us-gaap:SeniorNotesMemberschw:SeniorNotesDueMay2025Member2022-12-310000316709us-gaap:SeniorNotesMemberschw:SeniorNotesDueFebruary2026Member2023-12-310000316709us-gaap:SeniorNotesMemberschw:SeniorNotesDueFebruary2026Member2022-12-310000316709schw:SeniorNotesDueMarch2026Memberus-gaap:SeniorNotesMember2023-12-310000316709schw:SeniorNotesDueMarch2026Memberus-gaap:SeniorNotesMember2022-12-310000316709us-gaap:SeniorNotesMemberschw:SeniorNotesDueMay2026Member2023-12-310000316709us-gaap:SeniorNotesMemberschw:SeniorNotesDueMay2026Member2022-12-310000316709us-gaap:SeniorNotesMemberschw:SeniorNotesDueMarch22027Member2023-12-310000316709us-gaap:SeniorNotesMemberschw:SeniorNotesDueMarch22027Member2022-12-310000316709us-gaap:SeniorNotesMemberschw:SeniorNotesDueMarch32027Member2023-12-310000316709us-gaap:SeniorNotesMemberschw:SeniorNotesDueMarch32027Member2022-12-310000316709us-gaap:SeniorNotesMemberschw:SeniorNotesDueApril2027Member2023-12-310000316709us-gaap:SeniorNotesMemberschw:SeniorNotesDueApril2027Member2022-12-310000316709schw:SeniorNotesDueJanuary2028Memberus-gaap:SeniorNotesMember2023-12-310000316709schw:SeniorNotesDueJanuary2028Memberus-gaap:SeniorNotesMember2022-12-310000316709schw:SeniorNotesDueMarch2028Memberus-gaap:SeniorNotesMember2023-12-310000316709schw:SeniorNotesDueMarch2028Memberus-gaap:SeniorNotesMember2022-12-310000316709schw:SeniorNotesDueFebruary2029Memberus-gaap:SeniorNotesMember2023-12-310000316709schw:SeniorNotesDueFebruary2029Memberus-gaap:SeniorNotesMember2022-12-310000316709us-gaap:SeniorNotesMemberschw:SeniorNotesDueMay2029Member2023-12-310000316709us-gaap:SeniorNotesMemberschw:SeniorNotesDueMay2029Member2022-12-310000316709us-gaap:SeniorNotesMemberschw:SeniorNotesDueOctober2029Member2023-12-310000316709us-gaap:SeniorNotesMemberschw:SeniorNotesDueOctober2029Member2022-12-310000316709us-gaap:SeniorNotesMemberschw:SeniorNotesDue2030Member2023-12-310000316709us-gaap:SeniorNotesMemberschw:SeniorNotesDue2030Member2022-12-310000316709schw:SeniorNotesDueMarch2031Memberus-gaap:SeniorNotesMember2023-12-310000316709schw:SeniorNotesDueMarch2031Memberus-gaap:SeniorNotesMember2022-12-310000316709us-gaap:SeniorNotesMemberschw:SeniorNotesDueMay2031Member2023-12-310000316709us-gaap:SeniorNotesMemberschw:SeniorNotesDueMay2031Member2022-12-310000316709schw:SeniorNotesDueDecember2031Memberus-gaap:SeniorNotesMember2023-12-310000316709schw:SeniorNotesDueDecember2031Memberus-gaap:SeniorNotesMember2022-12-310000316709us-gaap:SeniorNotesMemberschw:SeniorNotesDueMarch2032Member2023-12-310000316709us-gaap:SeniorNotesMemberschw:SeniorNotesDueMarch2032Member2022-12-310000316709schw:SeniorNotesDueAugust2026Memberus-gaap:SeniorNotesMember2023-12-310000316709schw:SeniorNotesDueAugust2026Memberus-gaap:SeniorNotesMember2022-12-310000316709schw:SecuredOvernightFinancingRateSOFRMemberus-gaap:SeniorNotesMemberschw:FloatingRateSeniorNotesDue2024Member2023-01-012023-12-310000316709us-gaap:SeniorNotesMemberschw:FloatingRateSeniorNotesDue2024Member2023-12-310000316709us-gaap:SeniorNotesMemberschw:FloatingRateSeniorNotesDue2024Member2022-12-310000316709schw:SecuredOvernightFinancingRateSOFRMemberus-gaap:SeniorNotesMemberschw:FloatingRateSeniorNotesDue2026Member2023-01-012023-12-310000316709us-gaap:SeniorNotesMemberschw:FloatingRateSeniorNotesDue2026Member2023-12-310000316709us-gaap:SeniorNotesMemberschw:FloatingRateSeniorNotesDue2026Member2022-12-310000316709schw:SecuredOvernightFinancingRateSOFRMemberschw:FloatingRateSeniorNotesDue2027Memberus-gaap:SeniorNotesMember2023-01-012023-12-310000316709schw:FloatingRateSeniorNotesDue2027Memberus-gaap:SeniorNotesMember2023-12-310000316709schw:FloatingRateSeniorNotesDue2027Memberus-gaap:SeniorNotesMember2022-12-310000316709us-gaap:SeniorNotesMemberschw:FixedToFloatingRateSeniorNotesDue2029Member2023-12-310000316709us-gaap:SeniorNotesMemberschw:FixedToFloatingRateSeniorNotesDue2029Member2022-12-310000316709us-gaap:SeniorNotesMemberschw:FixedToFloatingRateSeniorNotesDue2034Member2023-12-310000316709us-gaap:SeniorNotesMemberschw:FixedToFloatingRateSeniorNotesDue2034Member2022-12-310000316709us-gaap:SeniorNotesMemberschw:FixedToFloatingRateSeniorNotesDueAugust2034Member2023-12-310000316709us-gaap:SeniorNotesMemberschw:FixedToFloatingRateSeniorNotesDueAugust2034Member2022-12-310000316709us-gaap:SeniorNotesMemberschw:FixedToFloatingRateSeniorNotesDueNovember2029Member2023-12-310000316709us-gaap:SeniorNotesMemberschw:FixedToFloatingRateSeniorNotesDueNovember2029Member2022-12-310000316709us-gaap:SeniorNotesMember2023-12-310000316709us-gaap:SeniorNotesMember2022-12-310000316709schw:SeniorNotesDueApril2024Memberschw:TDAmeritradeHoldingMemberus-gaap:SeniorNotesMember2023-12-310000316709schw:SeniorNotesDueApril2024Memberschw:TDAmeritradeHoldingMemberus-gaap:SeniorNotesMember2022-12-310000316709schw:SeniorNotesDueApril2025Memberschw:TDAmeritradeHoldingMemberus-gaap:SeniorNotesMember2023-12-310000316709schw:SeniorNotesDueApril2025Memberschw:TDAmeritradeHoldingMemberus-gaap:SeniorNotesMember2022-12-310000316709schw:TDAmeritradeHoldingMemberus-gaap:SeniorNotesMemberschw:SeniorNotesDueApril2027Member2023-12-310000316709schw:TDAmeritradeHoldingMemberus-gaap:SeniorNotesMemberschw:SeniorNotesDueApril2027Member2022-12-310000316709schw:TDAmeritradeHoldingMemberus-gaap:SeniorNotesMemberschw:SeniorNotesDueOctober2029Member2023-12-310000316709schw:TDAmeritradeHoldingMemberus-gaap:SeniorNotesMemberschw:SeniorNotesDueOctober2029Member2022-12-310000316709schw:TDAmeritradeHoldingMemberus-gaap:SeniorNotesMember2023-12-310000316709schw:TDAmeritradeHoldingMemberus-gaap:SeniorNotesMember2022-12-310000316709schw:SecuredOvernightFinancingRateSOFRMemberus-gaap:SeniorNotesMembersrt:ScenarioForecastMemberschw:FixedToFloatingRateSeniorNotesDue2029Member2028-05-192028-05-190000316709schw:SecuredOvernightFinancingRateSOFRMemberus-gaap:SeniorNotesMembersrt:ScenarioForecastMemberschw:FixedToFloatingRateSeniorNotesDue2034Member2033-05-192033-05-190000316709schw:SecuredOvernightFinancingRateSOFRMemberschw:FixedToFloatingRateSeniorNotesDueAugust2034Memberus-gaap:SeniorNotesMembersrt:ScenarioForecastMember2033-08-242033-08-240000316709schw:SecuredOvernightFinancingRateSOFRMemberus-gaap:SeniorNotesMembersrt:ScenarioForecastMemberschw:FixedToFloatingRateSeniorNotesDueNovember2029Member2028-11-172028-11-170000316709us-gaap:FederalHomeLoanBankAdvancesMemberus-gaap:SecuredDebtMember2023-12-310000316709us-gaap:FederalHomeLoanBankAdvancesMemberus-gaap:SecuredDebtMember2022-12-310000316709us-gaap:CommercialPaperMembersrt:MaximumMember2023-01-012023-12-310000316709us-gaap:LineOfCreditMemberschw:UncommittedLinesOfCreditWithExternalBanksMember2023-12-310000316709us-gaap:LineOfCreditMemberschw:UncommittedLinesOfCreditWithExternalBanksMember2022-12-310000316709us-gaap:LineOfCreditMemberschw:SecuredUncommittedLinesOfCreditMember2023-12-310000316709us-gaap:LineOfCreditMemberschw:SecuredUncommittedLinesOfCreditMember2022-12-310000316709us-gaap:FederalReserveBankAdvancesMember2023-12-310000316709us-gaap:FederalReserveBankAdvancesMember2022-12-310000316709schw:FederalReserveBankTermFundingProgramBTFPMember2023-12-310000316709us-gaap:RepurchaseAgreementsMember2023-12-310000316709us-gaap:RepurchaseAgreementsMember2022-12-310000316709us-gaap:LineOfCreditMemberschw:TDAmeritradeClearingIncMember2023-12-310000316709us-gaap:LineOfCreditMemberschw:TDAmeritradeClearingIncMember2022-12-310000316709srt:MinimumMember2023-12-310000316709srt:MaximumMember2023-12-310000316709schw:HomeEquityLinesOfCreditPledgedAssetLinesAndOtherLinesOfCreditMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310000316709schw:HomeEquityLinesOfCreditPledgedAssetLinesAndOtherLinesOfCreditMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310000316709us-gaap:PerformanceGuaranteeMember2023-12-3100003167092021-07-0100003167092023-05-040000316709schw:TDAmeritradeIncMember2023-01-012023-12-31schw:clientTransitionGroup0000316709schw:TDAmeritradeIntegrationMembersrt:MinimumMember2023-12-310000316709srt:MaximumMemberschw:TDAmeritradeIntegrationMember2023-12-310000316709schw:TDAmeritradeIntegrationMember2023-01-012023-12-310000316709schw:TDAmeritradeIntegrationMember2022-01-012022-12-310000316709schw:TDAmeritradeIntegrationMember2021-01-012021-12-310000316709srt:MaximumMemberschw:TDAmeritradeIntegrationMember2023-01-012023-12-310000316709schw:InvestorServicesMemberschw:TDAmeritradeIntegrationMember2021-12-310000316709schw:AdvisorServicesMemberschw:TDAmeritradeIntegrationMember2021-12-310000316709schw:TDAmeritradeIntegrationMember2021-12-310000316709schw:InvestorServicesMemberschw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMemberschw:LaborAndRelatedExpenseMember2022-01-012022-12-310000316709schw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMemberschw:LaborAndRelatedExpenseMember2022-01-012022-12-310000316709schw:TDAmeritradeIntegrationMemberschw:LaborAndRelatedExpenseMember2022-01-012022-12-310000316709schw:InvestorServicesMemberschw:TDAmeritradeIntegrationMember2022-01-012022-12-310000316709schw:AdvisorServicesMemberschw:TDAmeritradeIntegrationMember2022-01-012022-12-310000316709schw:InvestorServicesMemberschw:TDAmeritradeIntegrationMember2022-12-310000316709schw:AdvisorServicesMemberschw:TDAmeritradeIntegrationMember2022-12-310000316709schw:TDAmeritradeIntegrationMember2022-12-310000316709schw:InvestorServicesMemberschw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMemberschw:LaborAndRelatedExpenseMember2023-01-012023-12-310000316709schw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMemberschw:LaborAndRelatedExpenseMember2023-01-012023-12-310000316709schw:TDAmeritradeIntegrationMemberschw:LaborAndRelatedExpenseMember2023-01-012023-12-310000316709schw:InvestorServicesMemberschw:TDAmeritradeIntegrationMember2023-01-012023-12-310000316709schw:AdvisorServicesMemberschw:TDAmeritradeIntegrationMember2023-01-012023-12-310000316709schw:InvestorServicesMemberschw:TDAmeritradeIntegrationMember2023-12-310000316709schw:AdvisorServicesMemberschw:TDAmeritradeIntegrationMember2023-12-310000316709schw:TDAmeritradeIntegrationMember2023-12-310000316709schw:InvestorServicesMemberus-gaap:FacilityClosingMemberschw:TDAmeritradeIntegrationMemberschw:LaborAndRelatedExpenseMember2023-01-012023-12-310000316709schw:InvestorServicesMemberschw:TDAmeritradeIntegrationMemberschw:LaborAndRelatedExpenseMember2023-01-012023-12-310000316709us-gaap:FacilityClosingMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMemberschw:LaborAndRelatedExpenseMember2023-01-012023-12-310000316709schw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMemberschw:LaborAndRelatedExpenseMember2023-01-012023-12-310000316709schw:InvestorServicesMemberschw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMemberschw:OccupancyAndEquipmentMember2023-01-012023-12-310000316709schw:InvestorServicesMemberus-gaap:FacilityClosingMemberschw:TDAmeritradeIntegrationMemberschw:OccupancyAndEquipmentMember2023-01-012023-12-310000316709schw:InvestorServicesMemberschw:TDAmeritradeIntegrationMemberschw:OccupancyAndEquipmentMember2023-01-012023-12-310000316709schw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMemberschw:OccupancyAndEquipmentMember2023-01-012023-12-310000316709us-gaap:FacilityClosingMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMemberschw:OccupancyAndEquipmentMember2023-01-012023-12-310000316709schw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMemberschw:OccupancyAndEquipmentMember2023-01-012023-12-310000316709schw:TDAmeritradeIntegrationMemberschw:OccupancyAndEquipmentMember2023-01-012023-12-310000316709schw:InvestorServicesMemberus-gaap:OtherOperatingIncomeExpenseMemberschw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMember2023-01-012023-12-310000316709schw:InvestorServicesMemberus-gaap:OtherOperatingIncomeExpenseMemberus-gaap:FacilityClosingMemberschw:TDAmeritradeIntegrationMember2023-01-012023-12-310000316709schw:InvestorServicesMemberus-gaap:OtherOperatingIncomeExpenseMemberschw:TDAmeritradeIntegrationMember2023-01-012023-12-310000316709us-gaap:OtherOperatingIncomeExpenseMemberschw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMember2023-01-012023-12-310000316709us-gaap:OtherOperatingIncomeExpenseMemberus-gaap:FacilityClosingMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMember2023-01-012023-12-310000316709us-gaap:OtherOperatingIncomeExpenseMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMember2023-01-012023-12-310000316709us-gaap:OtherOperatingIncomeExpenseMemberschw:TDAmeritradeIntegrationMember2023-01-012023-12-310000316709schw:InvestorServicesMemberschw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMember2023-01-012023-12-310000316709schw:InvestorServicesMemberus-gaap:FacilityClosingMemberschw:TDAmeritradeIntegrationMember2023-01-012023-12-310000316709schw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMember2023-01-012023-12-310000316709us-gaap:FacilityClosingMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMember2023-01-012023-12-310000316709schw:InvestorServicesMemberus-gaap:FacilityClosingMemberschw:TDAmeritradeIntegrationMemberschw:LaborAndRelatedExpenseMember2022-01-012022-12-310000316709schw:InvestorServicesMemberschw:TDAmeritradeIntegrationMemberschw:LaborAndRelatedExpenseMember2022-01-012022-12-310000316709us-gaap:FacilityClosingMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMemberschw:LaborAndRelatedExpenseMember2022-01-012022-12-310000316709schw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMemberschw:LaborAndRelatedExpenseMember2022-01-012022-12-310000316709schw:InvestorServicesMemberschw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMemberschw:OccupancyAndEquipmentMember2022-01-012022-12-310000316709schw:InvestorServicesMemberus-gaap:FacilityClosingMemberschw:TDAmeritradeIntegrationMemberschw:OccupancyAndEquipmentMember2022-01-012022-12-310000316709schw:InvestorServicesMemberschw:TDAmeritradeIntegrationMemberschw:OccupancyAndEquipmentMember2022-01-012022-12-310000316709schw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMemberschw:OccupancyAndEquipmentMember2022-01-012022-12-310000316709us-gaap:FacilityClosingMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMemberschw:OccupancyAndEquipmentMember2022-01-012022-12-310000316709schw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMemberschw:OccupancyAndEquipmentMember2022-01-012022-12-310000316709schw:TDAmeritradeIntegrationMemberschw:OccupancyAndEquipmentMember2022-01-012022-12-310000316709schw:InvestorServicesMemberschw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMember2022-01-012022-12-310000316709schw:InvestorServicesMemberus-gaap:FacilityClosingMemberschw:TDAmeritradeIntegrationMember2022-01-012022-12-310000316709schw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMember2022-01-012022-12-310000316709us-gaap:FacilityClosingMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMember2022-01-012022-12-310000316709schw:InvestorServicesMemberschw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMemberschw:LaborAndRelatedExpenseMember2021-01-012021-12-310000316709schw:InvestorServicesMemberus-gaap:FacilityClosingMemberschw:TDAmeritradeIntegrationMemberschw:LaborAndRelatedExpenseMember2021-01-012021-12-310000316709schw:InvestorServicesMemberschw:TDAmeritradeIntegrationMemberschw:LaborAndRelatedExpenseMember2021-01-012021-12-310000316709schw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMemberschw:LaborAndRelatedExpenseMember2021-01-012021-12-310000316709us-gaap:FacilityClosingMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMemberschw:LaborAndRelatedExpenseMember2021-01-012021-12-310000316709schw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMemberschw:LaborAndRelatedExpenseMember2021-01-012021-12-310000316709schw:TDAmeritradeIntegrationMemberschw:LaborAndRelatedExpenseMember2021-01-012021-12-310000316709schw:InvestorServicesMemberschw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMemberschw:OccupancyAndEquipmentMember2021-01-012021-12-310000316709schw:InvestorServicesMemberus-gaap:FacilityClosingMemberschw:TDAmeritradeIntegrationMemberschw:OccupancyAndEquipmentMember2021-01-012021-12-310000316709schw:InvestorServicesMemberschw:TDAmeritradeIntegrationMemberschw:OccupancyAndEquipmentMember2021-01-012021-12-310000316709schw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMemberschw:OccupancyAndEquipmentMember2021-01-012021-12-310000316709us-gaap:FacilityClosingMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMemberschw:OccupancyAndEquipmentMember2021-01-012021-12-310000316709schw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMemberschw:OccupancyAndEquipmentMember2021-01-012021-12-310000316709schw:TDAmeritradeIntegrationMemberschw:OccupancyAndEquipmentMember2021-01-012021-12-310000316709schw:InvestorServicesMemberschw:ProfessionalServicesMemberschw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMember2021-01-012021-12-310000316709schw:InvestorServicesMemberus-gaap:FacilityClosingMemberschw:ProfessionalServicesMemberschw:TDAmeritradeIntegrationMember2021-01-012021-12-310000316709schw:InvestorServicesMemberschw:ProfessionalServicesMemberschw:TDAmeritradeIntegrationMember2021-01-012021-12-310000316709schw:ProfessionalServicesMemberschw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMember2021-01-012021-12-310000316709us-gaap:FacilityClosingMemberschw:ProfessionalServicesMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMember2021-01-012021-12-310000316709schw:ProfessionalServicesMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMember2021-01-012021-12-310000316709schw:ProfessionalServicesMemberschw:TDAmeritradeIntegrationMember2021-01-012021-12-310000316709schw:InvestorServicesMemberus-gaap:OtherOperatingIncomeExpenseMemberschw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMember2021-01-012021-12-310000316709schw:InvestorServicesMemberus-gaap:OtherOperatingIncomeExpenseMemberus-gaap:FacilityClosingMemberschw:TDAmeritradeIntegrationMember2021-01-012021-12-310000316709schw:InvestorServicesMemberus-gaap:OtherOperatingIncomeExpenseMemberschw:TDAmeritradeIntegrationMember2021-01-012021-12-310000316709us-gaap:OtherOperatingIncomeExpenseMemberschw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMember2021-01-012021-12-310000316709us-gaap:OtherOperatingIncomeExpenseMemberus-gaap:FacilityClosingMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMember2021-01-012021-12-310000316709us-gaap:OtherOperatingIncomeExpenseMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMember2021-01-012021-12-310000316709us-gaap:OtherOperatingIncomeExpenseMemberschw:TDAmeritradeIntegrationMember2021-01-012021-12-310000316709schw:InvestorServicesMemberschw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMember2021-01-012021-12-310000316709schw:InvestorServicesMemberus-gaap:FacilityClosingMemberschw:TDAmeritradeIntegrationMember2021-01-012021-12-310000316709schw:InvestorServicesMemberschw:TDAmeritradeIntegrationMember2021-01-012021-12-310000316709schw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMember2021-01-012021-12-310000316709us-gaap:FacilityClosingMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMember2021-01-012021-12-310000316709schw:AdvisorServicesMemberschw:TDAmeritradeIntegrationMember2021-01-012021-12-310000316709schw:InvestorServicesMemberschw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMemberschw:LaborAndRelatedExpenseMember2020-10-062023-12-310000316709schw:InvestorServicesMemberus-gaap:FacilityClosingMemberschw:TDAmeritradeIntegrationMemberschw:LaborAndRelatedExpenseMember2020-10-062023-12-310000316709schw:InvestorServicesMemberschw:TDAmeritradeIntegrationMemberschw:LaborAndRelatedExpenseMember2020-10-062023-12-310000316709schw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMemberschw:LaborAndRelatedExpenseMember2020-10-062023-12-310000316709us-gaap:FacilityClosingMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMemberschw:LaborAndRelatedExpenseMember2020-10-062023-12-310000316709schw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMemberschw:LaborAndRelatedExpenseMember2020-10-062023-12-310000316709schw:TDAmeritradeIntegrationMemberschw:LaborAndRelatedExpenseMember2020-10-062023-12-310000316709schw:InvestorServicesMemberschw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMemberschw:OccupancyAndEquipmentMember2020-10-062023-12-310000316709schw:InvestorServicesMemberus-gaap:FacilityClosingMemberschw:TDAmeritradeIntegrationMemberschw:OccupancyAndEquipmentMember2020-10-062023-12-310000316709schw:InvestorServicesMemberschw:TDAmeritradeIntegrationMemberschw:OccupancyAndEquipmentMember2020-10-062023-12-310000316709schw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMemberschw:OccupancyAndEquipmentMember2020-10-062023-12-310000316709us-gaap:FacilityClosingMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMemberschw:OccupancyAndEquipmentMember2020-10-062023-12-310000316709schw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMemberschw:OccupancyAndEquipmentMember2020-10-062023-12-310000316709schw:TDAmeritradeIntegrationMemberschw:OccupancyAndEquipmentMember2020-10-062023-12-310000316709schw:InvestorServicesMemberschw:DepreciationDepletionAndAmortizationNonproductionMemberschw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMember2020-10-062023-12-310000316709schw:InvestorServicesMemberschw:DepreciationDepletionAndAmortizationNonproductionMemberus-gaap:FacilityClosingMemberschw:TDAmeritradeIntegrationMember2020-10-062023-12-310000316709schw:InvestorServicesMemberschw:DepreciationDepletionAndAmortizationNonproductionMemberschw:TDAmeritradeIntegrationMember2020-10-062023-12-310000316709schw:DepreciationDepletionAndAmortizationNonproductionMemberschw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMember2020-10-062023-12-310000316709schw:DepreciationDepletionAndAmortizationNonproductionMemberus-gaap:FacilityClosingMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMember2020-10-062023-12-310000316709schw:DepreciationDepletionAndAmortizationNonproductionMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMember2020-10-062023-12-310000316709schw:DepreciationDepletionAndAmortizationNonproductionMemberschw:TDAmeritradeIntegrationMember2020-10-062023-12-310000316709schw:InvestorServicesMemberschw:ProfessionalServicesMemberschw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMember2020-10-062023-12-310000316709schw:InvestorServicesMemberus-gaap:FacilityClosingMemberschw:ProfessionalServicesMemberschw:TDAmeritradeIntegrationMember2020-10-062023-12-310000316709schw:InvestorServicesMemberschw:ProfessionalServicesMemberschw:TDAmeritradeIntegrationMember2020-10-062023-12-310000316709schw:ProfessionalServicesMemberschw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMember2020-10-062023-12-310000316709us-gaap:FacilityClosingMemberschw:ProfessionalServicesMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMember2020-10-062023-12-310000316709schw:ProfessionalServicesMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMember2020-10-062023-12-310000316709schw:ProfessionalServicesMemberschw:TDAmeritradeIntegrationMember2020-10-062023-12-310000316709schw:InvestorServicesMemberus-gaap:OtherOperatingIncomeExpenseMemberschw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMember2020-10-062023-12-310000316709schw:InvestorServicesMemberus-gaap:OtherOperatingIncomeExpenseMemberus-gaap:FacilityClosingMemberschw:TDAmeritradeIntegrationMember2020-10-062023-12-310000316709schw:InvestorServicesMemberus-gaap:OtherOperatingIncomeExpenseMemberschw:TDAmeritradeIntegrationMember2020-10-062023-12-310000316709us-gaap:OtherOperatingIncomeExpenseMemberschw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMember2020-10-062023-12-310000316709us-gaap:OtherOperatingIncomeExpenseMemberus-gaap:FacilityClosingMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMember2020-10-062023-12-310000316709us-gaap:OtherOperatingIncomeExpenseMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMember2020-10-062023-12-310000316709us-gaap:OtherOperatingIncomeExpenseMemberschw:TDAmeritradeIntegrationMember2020-10-062023-12-310000316709schw:InvestorServicesMemberschw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMember2020-10-062023-12-310000316709schw:InvestorServicesMemberus-gaap:FacilityClosingMemberschw:TDAmeritradeIntegrationMember2020-10-062023-12-310000316709schw:InvestorServicesMemberschw:TDAmeritradeIntegrationMember2020-10-062023-12-310000316709schw:EmployeeSeveranceAndRetentionMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMember2020-10-062023-12-310000316709us-gaap:FacilityClosingMemberschw:TDAmeritradeIntegrationMemberschw:AdvisorServicesMember2020-10-062023-12-310000316709schw:AdvisorServicesMemberschw:TDAmeritradeIntegrationMember2020-10-062023-12-310000316709schw:TDAmeritradeIntegrationMember2020-10-062023-12-310000316709schw:OtherRestructuringPlanMember2023-12-310000316709schw:OtherRestructuringPlanMember2023-01-012023-12-310000316709schw:InvestorServicesMemberschw:OtherRestructuringPlanMember2022-12-310000316709schw:AdvisorServicesMemberschw:OtherRestructuringPlanMember2022-12-310000316709schw:OtherRestructuringPlanMember2022-12-310000316709schw:InvestorServicesMemberus-gaap:EmployeeSeveranceMemberschw:OtherRestructuringPlanMemberschw:LaborAndRelatedExpenseMember2023-01-012023-12-310000316709us-gaap:EmployeeSeveranceMemberschw:AdvisorServicesMemberschw:OtherRestructuringPlanMemberschw:LaborAndRelatedExpenseMember2023-01-012023-12-310000316709schw:OtherRestructuringPlanMemberschw:LaborAndRelatedExpenseMember2023-01-012023-12-310000316709schw:InvestorServicesMemberschw:OtherRestructuringPlanMember2023-01-012023-12-310000316709schw:AdvisorServicesMemberschw:OtherRestructuringPlanMember2023-01-012023-12-310000316709schw:InvestorServicesMemberschw:OtherRestructuringPlanMember2023-12-310000316709schw:AdvisorServicesMemberschw:OtherRestructuringPlanMember2023-12-310000316709schw:InvestorServicesMemberus-gaap:FacilityClosingMemberschw:OtherRestructuringPlanMemberschw:LaborAndRelatedExpenseMember2023-01-012023-12-310000316709schw:InvestorServicesMemberschw:OtherRestructuringPlanMemberschw:LaborAndRelatedExpenseMember2023-01-012023-12-310000316709us-gaap:FacilityClosingMemberschw:AdvisorServicesMemberschw:OtherRestructuringPlanMemberschw:LaborAndRelatedExpenseMember2023-01-012023-12-310000316709schw:AdvisorServicesMemberschw:OtherRestructuringPlanMemberschw:LaborAndRelatedExpenseMember2023-01-012023-12-310000316709schw:InvestorServicesMemberus-gaap:EmployeeSeveranceMemberschw:OtherRestructuringPlanMemberschw:OccupancyAndEquipmentMember2023-01-012023-12-310000316709schw:InvestorServicesMemberus-gaap:FacilityClosingMemberschw:OtherRestructuringPlanMemberschw:OccupancyAndEquipmentMember2023-01-012023-12-310000316709schw:InvestorServicesMemberschw:OtherRestructuringPlanMemberschw:OccupancyAndEquipmentMember2023-01-012023-12-310000316709us-gaap:EmployeeSeveranceMemberschw:AdvisorServicesMemberschw:OtherRestructuringPlanMemberschw:OccupancyAndEquipmentMember2023-01-012023-12-310000316709us-gaap:FacilityClosingMemberschw:AdvisorServicesMemberschw:OtherRestructuringPlanMemberschw:OccupancyAndEquipmentMember2023-01-012023-12-310000316709schw:AdvisorServicesMemberschw:OtherRestructuringPlanMemberschw:OccupancyAndEquipmentMember2023-01-012023-12-310000316709schw:OtherRestructuringPlanMemberschw:OccupancyAndEquipmentMember2023-01-012023-12-310000316709schw:InvestorServicesMemberus-gaap:EmployeeSeveranceMemberschw:ProfessionalServicesMemberschw:OtherRestructuringPlanMember2023-01-012023-12-310000316709schw:InvestorServicesMemberus-gaap:FacilityClosingMemberschw:ProfessionalServicesMemberschw:OtherRestructuringPlanMember2023-01-012023-12-310000316709schw:InvestorServicesMemberschw:ProfessionalServicesMemberschw:OtherRestructuringPlanMember2023-01-012023-12-310000316709us-gaap:EmployeeSeveranceMemberschw:ProfessionalServicesMemberschw:AdvisorServicesMemberschw:OtherRestructuringPlanMember2023-01-012023-12-310000316709us-gaap:FacilityClosingMemberschw:ProfessionalServicesMemberschw:AdvisorServicesMemberschw:OtherRestructuringPlanMember2023-01-012023-12-310000316709schw:ProfessionalServicesMemberschw:AdvisorServicesMemberschw:OtherRestructuringPlanMember2023-01-012023-12-310000316709schw:ProfessionalServicesMemberschw:OtherRestructuringPlanMember2023-01-012023-12-310000316709schw:InvestorServicesMemberus-gaap:OtherOperatingIncomeExpenseMemberus-gaap:EmployeeSeveranceMemberschw:OtherRestructuringPlanMember2023-01-012023-12-310000316709schw:InvestorServicesMemberus-gaap:OtherOperatingIncomeExpenseMemberus-gaap:FacilityClosingMemberschw:OtherRestructuringPlanMember2023-01-012023-12-310000316709schw:InvestorServicesMemberus-gaap:OtherOperatingIncomeExpenseMemberschw:OtherRestructuringPlanMember2023-01-012023-12-310000316709us-gaap:OtherOperatingIncomeExpenseMemberus-gaap:EmployeeSeveranceMemberschw:AdvisorServicesMemberschw:OtherRestructuringPlanMember2023-01-012023-12-310000316709us-gaap:OtherOperatingIncomeExpenseMemberus-gaap:FacilityClosingMemberschw:AdvisorServicesMemberschw:OtherRestructuringPlanMember2023-01-012023-12-310000316709us-gaap:OtherOperatingIncomeExpenseMemberschw:AdvisorServicesMemberschw:OtherRestructuringPlanMember2023-01-012023-12-310000316709us-gaap:OtherOperatingIncomeExpenseMemberschw:OtherRestructuringPlanMember2023-01-012023-12-310000316709schw:InvestorServicesMemberus-gaap:EmployeeSeveranceMemberschw:OtherRestructuringPlanMember2023-01-012023-12-310000316709schw:InvestorServicesMemberus-gaap:FacilityClosingMemberschw:OtherRestructuringPlanMember2023-01-012023-12-310000316709us-gaap:EmployeeSeveranceMemberschw:AdvisorServicesMemberschw:OtherRestructuringPlanMember2023-01-012023-12-310000316709us-gaap:FacilityClosingMemberschw:AdvisorServicesMemberschw:OtherRestructuringPlanMember2023-01-012023-12-310000316709us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-12-310000316709us-gaap:DebtSecuritiesMember2023-12-310000316709srt:MaximumMemberus-gaap:DebtSecuritiesMember2023-12-310000316709us-gaap:DebtSecuritiesMember2023-01-012023-12-310000316709us-gaap:InterestRateSwapMember2023-01-012023-12-310000316709us-gaap:SecuritiesFinancingTransactionFairValueMember2023-12-310000316709us-gaap:SecuritiesFinancingTransactionFairValueMember2022-12-310000316709us-gaap:InterestRateSwapMember2023-12-310000316709schw:SecuredUncommittedLinesOfCreditMember2023-12-310000316709schw:ResaleAndRepurchaseAgreementsMember2023-12-310000316709schw:ResaleAndRepurchaseAgreementsMember2022-12-310000316709us-gaap:SecuritiesSoldUnderAgreementsToRepurchaseMember2023-12-310000316709us-gaap:SecuritiesSoldUnderAgreementsToRepurchaseMember2022-12-310000316709schw:FulfillmentOfRequirementsWithOptionsClearingCorporationMember2023-12-310000316709schw:FulfillmentOfRequirementsWithOptionsClearingCorporationMember2022-12-310000316709schw:FulfillmentOfClientShortSalesMember2023-12-310000316709schw:FulfillmentOfClientShortSalesMember2022-12-310000316709schw:SecuritiesLendingToOtherBrokerDealersMember2023-12-310000316709schw:SecuritiesLendingToOtherBrokerDealersMember2022-12-310000316709schw:CollateralForSecuredShortTermBorrowingsMember2023-12-310000316709schw:CollateralForSecuredShortTermBorrowingsMember2022-12-310000316709schw:FullyPaidClientSecuritiesMember2023-12-310000316709schw:FullyPaidClientSecuritiesMember2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Member2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMember2023-12-310000316709us-gaap:USGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-12-310000316709us-gaap:USGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-12-310000316709us-gaap:USGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-12-310000316709us-gaap:USGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel1Member2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel3Member2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2023-12-310000316709us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-12-310000316709us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-12-310000316709us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-12-310000316709us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:AssetBackedSecuritiesMember2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:AssetBackedSecuritiesMember2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:AssetBackedSecuritiesMember2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2023-12-310000316709us-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-12-310000316709us-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-12-310000316709us-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-12-310000316709us-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueInputsLevel1Member2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:USStatesAndPoliticalSubdivisionsMember2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueInputsLevel3Member2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2023-12-310000316709schw:CommercialMortageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-12-310000316709schw:CommercialMortageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-12-310000316709schw:CommercialMortageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-12-310000316709schw:CommercialMortageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000316709us-gaap:CertificatesOfDepositMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-12-310000316709us-gaap:CertificatesOfDepositMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-12-310000316709us-gaap:CertificatesOfDepositMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-12-310000316709us-gaap:CertificatesOfDepositMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:OtherDebtSecuritiesMember2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:OtherDebtSecuritiesMember2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:OtherDebtSecuritiesMember2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherDebtSecuritiesMember2023-12-310000316709schw:EquityCorporateDebtAndOtherSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-12-310000316709schw:EquityCorporateDebtAndOtherSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-12-310000316709schw:EquityCorporateDebtAndOtherSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-12-310000316709schw:EquityCorporateDebtAndOtherSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberschw:MutualFundsAndExchangeTradedFundsEFTsMemberus-gaap:FairValueInputsLevel1Member2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberschw:MutualFundsAndExchangeTradedFundsEFTsMember2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberschw:MutualFundsAndExchangeTradedFundsEFTsMemberus-gaap:FairValueInputsLevel3Member2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberschw:MutualFundsAndExchangeTradedFundsEFTsMember2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberschw:StateAndMunicipalDebtObligationsMemberus-gaap:FairValueInputsLevel1Member2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberschw:StateAndMunicipalDebtObligationsMember2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberschw:StateAndMunicipalDebtObligationsMemberus-gaap:FairValueInputsLevel3Member2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberschw:StateAndMunicipalDebtObligationsMember2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberschw:OtherSecuritiesMemberus-gaap:FairValueInputsLevel1Member2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberschw:OtherSecuritiesMemberus-gaap:FairValueInputsLevel2Member2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberschw:OtherSecuritiesMemberus-gaap:FairValueInputsLevel3Member2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberschw:OtherSecuritiesMember2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberschw:OtherFinancialInstrumentsMemberus-gaap:FairValueInputsLevel1Member2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberschw:OtherFinancialInstrumentsMember2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberschw:OtherFinancialInstrumentsMemberus-gaap:FairValueInputsLevel3Member2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberschw:OtherFinancialInstrumentsMember2023-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Member2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel1Member2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CommercialPaperMember2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel3Member2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMember2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMember2022-12-310000316709us-gaap:USGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2022-12-310000316709us-gaap:USGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-12-310000316709us-gaap:USGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2022-12-310000316709us-gaap:USGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000316709us-gaap:CertificatesOfDepositMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2022-12-310000316709us-gaap:CertificatesOfDepositMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-12-310000316709us-gaap:CertificatesOfDepositMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2022-12-310000316709us-gaap:CertificatesOfDepositMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel1Member2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel3Member2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2022-12-310000316709us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2022-12-310000316709us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-12-310000316709us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2022-12-310000316709us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:AssetBackedSecuritiesMember2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:AssetBackedSecuritiesMember2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:AssetBackedSecuritiesMember2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2022-12-310000316709us-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2022-12-310000316709us-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-12-310000316709us-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2022-12-310000316709us-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueInputsLevel1Member2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:USStatesAndPoliticalSubdivisionsMember2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueInputsLevel3Member2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2022-12-310000316709schw:CommercialMortageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2022-12-310000316709schw:CommercialMortageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-12-310000316709schw:CommercialMortageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2022-12-310000316709schw:CommercialMortageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:OtherDebtSecuritiesMember2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:OtherDebtSecuritiesMember2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:OtherDebtSecuritiesMember2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherDebtSecuritiesMember2022-12-310000316709schw:EquityCorporateDebtAndOtherSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2022-12-310000316709schw:EquityCorporateDebtAndOtherSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-12-310000316709schw:EquityCorporateDebtAndOtherSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2022-12-310000316709schw:EquityCorporateDebtAndOtherSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberschw:MutualFundsAndExchangeTradedFundsEFTsMemberus-gaap:FairValueInputsLevel1Member2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberschw:MutualFundsAndExchangeTradedFundsEFTsMember2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberschw:MutualFundsAndExchangeTradedFundsEFTsMemberus-gaap:FairValueInputsLevel3Member2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberschw:MutualFundsAndExchangeTradedFundsEFTsMember2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberschw:StateAndMunicipalDebtObligationsMemberus-gaap:FairValueInputsLevel1Member2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberschw:StateAndMunicipalDebtObligationsMember2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberschw:StateAndMunicipalDebtObligationsMemberus-gaap:FairValueInputsLevel3Member2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberschw:StateAndMunicipalDebtObligationsMember2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberschw:OtherSecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberschw:OtherSecuritiesMemberus-gaap:FairValueInputsLevel2Member2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberschw:OtherSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberschw:OtherSecuritiesMember2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberschw:OtherFinancialInstrumentsMemberus-gaap:FairValueInputsLevel1Member2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberschw:OtherFinancialInstrumentsMember2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberschw:OtherFinancialInstrumentsMemberus-gaap:FairValueInputsLevel3Member2022-12-310000316709us-gaap:FairValueMeasurementsRecurringMemberschw:OtherFinancialInstrumentsMember2022-12-310000316709us-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310000316709us-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Member2023-12-310000316709us-gaap:FairValueInputsLevel2Memberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMember2023-12-310000316709us-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel3Member2023-12-310000316709us-gaap:PortionAtOtherThanFairValueFairValueDisclosureMember2023-12-310000316709us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2023-12-310000316709us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Member2023-12-310000316709us-gaap:FairValueInputsLevel2Memberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMember2023-12-310000316709us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel3Member2023-12-310000316709us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMember2023-12-310000316709us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:FirstMortgageMember2023-12-310000316709us-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:FirstMortgageMemberus-gaap:FairValueInputsLevel1Member2023-12-310000316709us-gaap:FairValueInputsLevel2Memberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:FirstMortgageMember2023-12-310000316709us-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:FirstMortgageMemberus-gaap:FairValueInputsLevel3Member2023-12-310000316709us-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:FirstMortgageMember2023-12-310000316709us-gaap:HomeEquityMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310000316709us-gaap:HomeEquityMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:FairValueInputsLevel1Member2023-12-310000316709us-gaap:HomeEquityMemberus-gaap:FairValueInputsLevel2Memberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310000316709us-gaap:HomeEquityMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:FairValueInputsLevel3Member2023-12-310000316709us-gaap:HomeEquityMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310000316709schw:PledgedAssetLinesPortfolioSegmentMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310000316709schw:PledgedAssetLinesPortfolioSegmentMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Member2023-12-310000316709schw:PledgedAssetLinesPortfolioSegmentMemberus-gaap:FairValueInputsLevel2Memberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMember2023-12-310000316709schw:PledgedAssetLinesPortfolioSegmentMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel3Member2023-12-310000316709schw:PledgedAssetLinesPortfolioSegmentMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMember2023-12-310000316709us-gaap:CarryingReportedAmountFairValueDisclosureMemberschw:OtherPortfolioSegmentMember2023-12-310000316709schw:OtherPortfolioSegmentMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Member2023-12-310000316709us-gaap:FairValueInputsLevel2Memberschw:OtherPortfolioSegmentMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMember2023-12-310000316709schw:OtherPortfolioSegmentMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel3Member2023-12-310000316709schw:OtherPortfolioSegmentMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMember2023-12-310000316709us-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-310000316709us-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Member2022-12-310000316709us-gaap:FairValueInputsLevel2Memberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMember2022-12-310000316709us-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel3Member2022-12-310000316709us-gaap:PortionAtOtherThanFairValueFairValueDisclosureMember2022-12-310000316709us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2022-12-310000316709us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Member2022-12-310000316709us-gaap:FairValueInputsLevel2Memberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMember2022-12-310000316709us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel3Member2022-12-310000316709us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMember2022-12-310000316709us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:FirstMortgageMember2022-12-310000316709us-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:FirstMortgageMemberus-gaap:FairValueInputsLevel1Member2022-12-310000316709us-gaap:FairValueInputsLevel2Memberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:FirstMortgageMember2022-12-310000316709us-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:FirstMortgageMemberus-gaap:FairValueInputsLevel3Member2022-12-310000316709us-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:FirstMortgageMember2022-12-310000316709us-gaap:HomeEquityMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310000316709us-gaap:HomeEquityMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:FairValueInputsLevel1Member2022-12-310000316709us-gaap:HomeEquityMemberus-gaap:FairValueInputsLevel2Memberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310000316709us-gaap:HomeEquityMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:FairValueInputsLevel3Member2022-12-310000316709us-gaap:HomeEquityMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310000316709schw:PledgedAssetLinesPortfolioSegmentMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-310000316709schw:PledgedAssetLinesPortfolioSegmentMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Member2022-12-310000316709schw:PledgedAssetLinesPortfolioSegmentMemberus-gaap:FairValueInputsLevel2Memberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMember2022-12-310000316709schw:PledgedAssetLinesPortfolioSegmentMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel3Member2022-12-310000316709schw:PledgedAssetLinesPortfolioSegmentMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMember2022-12-310000316709us-gaap:CarryingReportedAmountFairValueDisclosureMemberschw:OtherPortfolioSegmentMember2022-12-310000316709schw:OtherPortfolioSegmentMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Member2022-12-310000316709us-gaap:FairValueInputsLevel2Memberschw:OtherPortfolioSegmentMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMember2022-12-310000316709schw:OtherPortfolioSegmentMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel3Member2022-12-310000316709schw:OtherPortfolioSegmentMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMember2022-12-310000316709us-gaap:CommonStockMember2023-01-012023-12-310000316709us-gaap:CommonStockMember2022-01-012022-12-310000316709us-gaap:CommonStockMember2021-01-012021-12-310000316709schw:TDBankAffiliateMemberus-gaap:NonvotingCommonStockMember2022-08-012022-08-010000316709us-gaap:NonvotingCommonStockMemberschw:TDBankMember2023-12-310000316709us-gaap:CommonStockMember2022-07-270000316709us-gaap:CommonStockMember2022-07-260000316709us-gaap:NonvotingCommonStockMember2022-08-012022-08-010000316709us-gaap:CommonStockMember2023-12-310000316709schw:DepositarySharesMember2021-03-182021-03-180000316709schw:SeriesIPreferredStockMember2021-03-182021-03-180000316709schw:SeriesIPreferredStockMember2021-03-180000316709schw:DepositarySharesMember2021-03-180000316709schw:DepositarySharesMember2021-03-302021-03-300000316709schw:SeriesJPreferredStockMember2021-03-302021-03-300000316709schw:SeriesJPreferredStockMember2021-03-300000316709schw:DepositarySharesMember2021-03-300000316709us-gaap:SeriesCPreferredStockMember2021-06-012021-06-010000316709schw:DepositarySharesMember2021-06-012021-06-010000316709schw:DepositarySharesMember2021-06-010000316709schw:DepositarySharesMember2022-03-042022-03-040000316709schw:SeriesKPreferredStockMember2022-03-042022-03-040000316709schw:SeriesKPreferredStockMember2022-03-040000316709schw:DepositarySharesMember2022-03-040000316709us-gaap:SeriesAPreferredStockMember2022-11-012022-11-010000316709us-gaap:SeriesAPreferredStockMember2022-11-010000316709us-gaap:SeriesEPreferredStockMember2022-12-012022-12-010000316709schw:DepositarySharesMember2022-12-012022-12-010000316709schw:DepositarySharesMember2022-12-010000316709schw:DepositarySharesSeriesFPreferredStockMember2023-01-012023-12-310000316709schw:DepositarySharesSeriesGPreferredStockMember2023-01-012023-12-310000316709schw:DepositarySharesSeriesHPreferredStockMember2023-01-012023-12-310000316709schw:DepositarySharesSeriesIPreferredStockMember2023-01-012023-12-310000316709schw:SeriesFSeriesGSeriesHAndSeriesIPreferredStockMember2023-01-012023-12-310000316709us-gaap:SeriesDPreferredStockMember2023-12-310000316709us-gaap:SeriesDPreferredStockMember2022-12-310000316709schw:SeriesJPreferredStockMember2023-12-310000316709schw:SeriesJPreferredStockMember2022-12-310000316709us-gaap:SeriesFPreferredStockMember2023-12-310000316709us-gaap:SeriesFPreferredStockMember2022-12-310000316709us-gaap:SeriesFPreferredStockMember2023-01-012023-12-310000316709us-gaap:SeriesFPreferredStockMemberschw:LondonInterbankOfferedRateLIBOR1Member2023-01-012023-12-310000316709us-gaap:SeriesGPreferredStockMember2023-12-310000316709us-gaap:SeriesGPreferredStockMember2022-12-310000316709us-gaap:SeriesGPreferredStockMember2023-01-012023-12-310000316709us-gaap:SeriesGPreferredStockMemberus-gaap:UsTreasuryUstInterestRateMember2023-01-012023-12-310000316709us-gaap:SeriesHPreferredStockMember2023-12-310000316709us-gaap:SeriesHPreferredStockMember2022-12-310000316709us-gaap:SeriesHPreferredStockMember2023-01-012023-12-310000316709us-gaap:SeriesHPreferredStockMemberus-gaap:UsTreasuryUstInterestRateMember2023-01-012023-12-310000316709schw:SeriesIPreferredStockMember2023-12-310000316709schw:SeriesIPreferredStockMember2022-12-310000316709schw:SeriesIPreferredStockMember2023-01-012023-12-310000316709schw:SeriesIPreferredStockMemberus-gaap:UsTreasuryUstInterestRateMember2023-01-012023-12-310000316709schw:SeriesKPreferredStockMember2023-12-310000316709schw:SeriesKPreferredStockMember2022-12-310000316709schw:SeriesKPreferredStockMember2023-01-012023-12-310000316709schw:SeriesKPreferredStockMemberus-gaap:UsTreasuryUstInterestRateMember2023-01-012023-12-310000316709us-gaap:SeriesAPreferredStockMember2022-01-012022-12-310000316709us-gaap:SeriesAPreferredStockMember2021-01-012021-12-310000316709us-gaap:SeriesCPreferredStockMember2021-01-012021-12-310000316709us-gaap:SeriesDPreferredStockMember2022-01-012022-12-310000316709us-gaap:SeriesDPreferredStockMember2021-01-012021-12-310000316709us-gaap:SeriesEPreferredStockMember2022-01-012022-12-310000316709us-gaap:SeriesEPreferredStockMember2021-01-012021-12-310000316709us-gaap:SeriesFPreferredStockMember2022-01-012022-12-310000316709us-gaap:SeriesFPreferredStockMember2021-01-012021-12-310000316709us-gaap:SeriesGPreferredStockMember2022-01-012022-12-310000316709us-gaap:SeriesGPreferredStockMember2021-01-012021-12-310000316709us-gaap:SeriesHPreferredStockMember2022-01-012022-12-310000316709us-gaap:SeriesHPreferredStockMember2021-01-012021-12-310000316709schw:SeriesIPreferredStockMember2022-01-012022-12-310000316709schw:SeriesIPreferredStockMember2021-01-012021-12-310000316709schw:SeriesJPreferredStockMember2022-01-012022-12-310000316709schw:SeriesJPreferredStockMember2021-01-012021-12-310000316709schw:SeriesKPreferredStockMember2022-01-012022-12-310000316709schw:SeriesGSeriesHAndSeriesIPreferredStockMember2023-01-012023-12-310000316709us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-01-012021-12-310000316709schw:OtherReclassificationsIncludedInOtherRevenueFromSaleOfSecuritiesMember2021-01-012021-12-310000316709schw:OtherAccumulatedOtherComprehensiveIncomeLossMember2021-01-012021-12-310000316709us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-01-012022-12-310000316709schw:NetUnrealizedGainLossOnSecuritiesTransferredToHeldToMaturityMember2022-01-012022-12-310000316709schw:OtherReclassificationsIncludedInOtherRevenueFromSaleOfSecuritiesMember2022-01-012022-12-310000316709schw:NetUnrealizedGainLossOnSecuritiesTransferredFromAvailableForSaleMember2022-01-012022-12-310000316709schw:AmortizationOfHeldToMaturitySecuritiesTransferredFromAvailableForSaleAttributableToParentMember2022-01-012022-12-310000316709schw:OtherAccumulatedOtherComprehensiveIncomeLossMember2022-01-012022-12-310000316709us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-01-012023-12-310000316709schw:OtherReclassificationsIncludedInOtherRevenueFromSaleOfSecuritiesMember2023-01-012023-12-310000316709schw:AmortizationOfHeldToMaturitySecuritiesTransferredFromAvailableForSaleAttributableToParentMember2023-01-012023-12-310000316709schw:OtherAccumulatedOtherComprehensiveIncomeLossMember2023-01-012023-12-310000316709us-gaap:EmployeeStockOptionMember2023-01-012023-12-310000316709us-gaap:EmployeeStockOptionMember2022-01-012022-12-310000316709us-gaap:EmployeeStockOptionMember2021-01-012021-12-310000316709us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-12-310000316709us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-12-310000316709us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-12-310000316709us-gaap:EmployeeStockMember2023-01-012023-12-310000316709us-gaap:EmployeeStockMember2022-01-012022-12-310000316709us-gaap:EmployeeStockMember2021-01-012021-12-310000316709schw:ShareBasedPaymentArrangementOptionExercisedAndRestrictedStockUnitsRSUsVestedMember2023-01-012023-12-310000316709schw:ShareBasedPaymentArrangementOptionExercisedAndRestrictedStockUnitsRSUsVestedMember2022-01-012022-12-310000316709schw:ShareBasedPaymentArrangementOptionExercisedAndRestrictedStockUnitsRSUsVestedMember2021-01-012021-12-310000316709schw:A2022StockIncentivePlanMember2022-05-170000316709schw:A2022StockIncentivePlanMember2022-05-172022-05-170000316709schw:EmployeeStockPurchasePlanMember2023-12-310000316709schw:NonPerformanceBasedRestrictedStockUnitsRSUsMember2023-01-012023-12-310000316709schw:PerformanceBasedRestrictedStockUnitsRSUsMember2023-01-012023-12-310000316709schw:StockOptionPlanMember2023-01-012023-12-310000316709schw:StockOptionPlanMembersrt:MinimumMember2023-01-012023-12-310000316709schw:StockOptionPlanMembersrt:MaximumMember2023-01-012023-12-310000316709srt:MinimumMember2023-01-012023-12-310000316709srt:MaximumMember2023-01-012023-12-310000316709srt:MinimumMember2022-01-012022-12-310000316709srt:MaximumMember2022-01-012022-12-310000316709srt:MinimumMember2021-01-012021-12-310000316709srt:MaximumMember2021-01-012021-12-310000316709schw:NonPerformanceBasedRestrictedStockUnitsRSUsMembersrt:MinimumMember2023-01-012023-12-310000316709srt:MaximumMemberschw:NonPerformanceBasedRestrictedStockUnitsRSUsMember2023-01-012023-12-310000316709schw:NonPerformanceBasedRestrictedStockUnitsRSUsMember2022-12-310000316709schw:PerformanceBasedRestrictedStockUnitsRSUsMember2022-12-310000316709us-gaap:RestrictedStockUnitsRSUMember2022-12-310000316709schw:NonPerformanceBasedRestrictedStockUnitsRSUsMember2023-12-310000316709schw:PerformanceBasedRestrictedStockUnitsRSUsMember2023-12-310000316709us-gaap:RestrictedStockUnitsRSUMember2023-12-31schw:year0000316709schw:CharlesSchwabCorporationMember2023-12-310000316709schw:CharlesSchwabBankMember2023-12-310000316709schw:CharlesSchwabCorporationMember2022-12-310000316709schw:CharlesSchwabBankMember2022-12-310000316709schw:CharlesSchwabPremierBankSSBMember2023-12-310000316709schw:CharlesSchwabPremierBankSSBMember2022-12-310000316709schw:CharlesSchwabTrustBankMember2023-12-310000316709schw:CharlesSchwabTrustBankMember2022-12-310000316709schw:CharlesSchwabCoIncMember2023-12-310000316709schw:CharlesSchwabCoIncMember2022-12-310000316709schw:TDAmeritradeClearingIncMember2023-12-310000316709schw:TDAmeritradeClearingIncMember2022-12-310000316709schw:TDAmeritradeIncMember2023-12-310000316709schw:TDAmeritradeIncMember2022-12-310000316709us-gaap:SubsequentEventMemberschw:ReserveDepositMemberschw:CharlesSchwabCoIncMember2024-01-030000316709us-gaap:SubsequentEventMemberschw:ReserveDepositMemberschw:TDAmeritradeClearingIncMember2024-01-020000316709us-gaap:IntersegmentEliminationMember2022-01-012022-12-310000316709us-gaap:IntersegmentEliminationMember2021-01-012021-12-310000316709us-gaap:IntersegmentEliminationMember2023-01-012023-12-310000316709schw:InvestorServicesMember2021-01-012021-12-310000316709schw:AdvisorServicesMember2021-01-012021-12-310000316709schw:InvestorServicesMemberschw:AssetManagementAndAdministrationServiceMember2023-01-012023-12-310000316709schw:InvestorServicesMemberschw:AssetManagementAndAdministrationServiceMember2022-01-012022-12-310000316709schw:InvestorServicesMemberschw:AssetManagementAndAdministrationServiceMember2021-01-012021-12-310000316709schw:AssetManagementAndAdministrationServiceMemberschw:AdvisorServicesMember2023-01-012023-12-310000316709schw:AssetManagementAndAdministrationServiceMemberschw:AdvisorServicesMember2022-01-012022-12-310000316709schw:AssetManagementAndAdministrationServiceMemberschw:AdvisorServicesMember2021-01-012021-12-310000316709schw:InvestorServicesMemberschw:TradingRevenueServiceMember2023-01-012023-12-310000316709schw:InvestorServicesMemberschw:TradingRevenueServiceMember2022-01-012022-12-310000316709schw:InvestorServicesMemberschw:TradingRevenueServiceMember2021-01-012021-12-310000316709schw:TradingRevenueServiceMemberschw:AdvisorServicesMember2023-01-012023-12-310000316709schw:TradingRevenueServiceMemberschw:AdvisorServicesMember2022-01-012022-12-310000316709schw:TradingRevenueServiceMemberschw:AdvisorServicesMember2021-01-012021-12-310000316709schw:InvestorServicesMemberschw:BankDepositAccountFeesMember2023-01-012023-12-310000316709schw:InvestorServicesMemberschw:BankDepositAccountFeesMember2022-01-012022-12-310000316709schw:InvestorServicesMemberschw:BankDepositAccountFeesMember2021-01-012021-12-310000316709schw:AdvisorServicesMemberschw:BankDepositAccountFeesMember2023-01-012023-12-310000316709schw:AdvisorServicesMemberschw:BankDepositAccountFeesMember2022-01-012022-12-310000316709schw:AdvisorServicesMemberschw:BankDepositAccountFeesMember2021-01-012021-12-310000316709schw:InvestorServicesMemberus-gaap:ProductAndServiceOtherMember2023-01-012023-12-310000316709schw:InvestorServicesMemberus-gaap:ProductAndServiceOtherMember2022-01-012022-12-310000316709schw:InvestorServicesMemberus-gaap:ProductAndServiceOtherMember2021-01-012021-12-310000316709schw:AdvisorServicesMemberus-gaap:ProductAndServiceOtherMember2023-01-012023-12-310000316709schw:AdvisorServicesMemberus-gaap:ProductAndServiceOtherMember2022-01-012022-12-310000316709schw:AdvisorServicesMemberus-gaap:ProductAndServiceOtherMember2021-01-012021-12-31schw:stockClass0000316709us-gaap:NonvotingCommonStockMember2023-01-012023-12-310000316709us-gaap:CommonStockMember2021-01-012021-12-310000316709us-gaap:NonvotingCommonStockMember2021-01-012021-12-310000316709srt:ParentCompanyMember2023-01-012023-12-310000316709srt:ParentCompanyMember2022-01-012022-12-310000316709srt:ParentCompanyMember2021-01-012021-12-310000316709srt:ParentCompanyMemberus-gaap:ProductAndServiceOtherMember2023-01-012023-12-310000316709srt:ParentCompanyMemberus-gaap:ProductAndServiceOtherMember2022-01-012022-12-310000316709srt:ParentCompanyMemberus-gaap:ProductAndServiceOtherMember2021-01-012021-12-310000316709srt:ParentCompanyMember2023-12-310000316709srt:ParentCompanyMember2022-12-310000316709srt:ParentCompanyMember2021-12-310000316709srt:ParentCompanyMember2020-12-3100003167092023-10-012023-12-310000316709schw:JonathanMCraigMember2023-10-012023-12-310000316709schw:JonathanMCraigMember2023-12-310000316709schw:CarrieSchwabPomerantzMember2023-10-012023-12-310000316709schw:CarrieSchwabPomerantzTradingArrangementTotalSharesMemberschw:CarrieSchwabPomerantzMember2023-12-310000316709schw:NigelMurtaghMember2023-10-012023-12-310000316709schw:NigelMurtaghMember2023-12-310000316709schw:CarrieSchwabPomerantzTradingArrangementSharesToBeSoldByRelatedPartyTrustMemberschw:CarrieSchwabPomerantzMember2023-12-31

UNITED STATES
SECURITIES  AND  EXCHANGE  COMMISSION
Washington, D.C. 20549

FORM  10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2023
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________ to ________
Commission File Number: 1-9700
THE  CHARLES  SCHWAB  CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
94-3025021
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
3000 Schwab Way, Westlake, TX  76262
(Address of principal executive offices and zip code)
Registrant’s telephone number, including area code:  (817) 859-5000
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock – $.01 par value per shareSCHWNew York Stock Exchange
Depositary Shares, each representing a 1/40th ownership interest in a share of 5.95% Non-Cumulative Preferred Stock, Series DSCHW PrDNew York Stock Exchange
Depositary Shares, each representing a 1/40th ownership interest in a share of 4.450% Non-Cumulative Preferred Stock, Series JSCHW PrJNew York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒   No ☐
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes ☐   No ☒
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒   No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒   No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer ☒                        Accelerated filer ☐
Non-accelerated filer ☐                        Smaller reporting company         
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐    No 

As of June 30, 2023, the aggregate market value of the voting stock held by non-affiliates of the registrant was $94.1 billion. For purposes of this information, the outstanding shares of Common Stock owned by directors and executive officers of the registrant were deemed to be shares of the voting stock held by affiliates.

As of January 31, 2024, 1,773,475,323 shares of $.01 par value Common Stock and 50,893,695 shares of $.01 par value Nonvoting Common Stock were outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Part III of this Form 10-K incorporates certain information contained in the registrant’s definitive proxy statement for its annual meeting of stockholders, to be held May 23, 2024, by reference to that document.



THE CHARLES SCHWAB CORPORATION

Annual Report On Form 10-K
For Fiscal Year Ended December 31, 2023

TABLE OF CONTENTS
Item 1.
Item 1A.
Item 1B.
Item 1C.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
Item 7.
Item 7A.
Item 8.
Item 9.
Item 9A.
Item 9B.
Item 9C.
  
Item 10.
Item 11.
Item 12.
Item 13.
Item 14.
 
Item 15.
Item 16.



THE CHARLES SCHWAB CORPORATION

PART I

Item 1.     Business

General Corporate Overview

The Charles Schwab Corporation (CSC) is a savings and loan holding company. CSC engages, through its subsidiaries (collectively referred to as Schwab or the Company), in wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. At December 31, 2023, Schwab had $8.52 trillion in client assets, 34.8 million active brokerage accounts, 5.2 million workplace plan participant accounts, and 1.8 million banking accounts.

Principal business subsidiaries of CSC include the following:

Charles Schwab & Co., Inc. (CS&Co), incorporated in 1971, a securities broker-dealer;
TD Ameritrade, Inc., an introducing securities broker-dealer;
TD Ameritrade Clearing, Inc. (TDAC), a securities broker-dealer that provides trade execution and clearing services to TD Ameritrade, Inc.;
Charles Schwab Bank, SSB (CSB), our principal banking entity; and
Charles Schwab Investment Management, Inc. (CSIM), the investment advisor for Schwab’s proprietary mutual funds (Schwab Funds®) and for Schwab’s exchange-traded funds (Schwab ETFs).

Unless otherwise indicated, the terms “Schwab,” “the Company,” “we,” “us,” or “our” mean CSC together with its consolidated subsidiaries.

Schwab provides financial services to individuals and institutional clients through two segments – Investor Services and Advisor Services. The Investor Services segment provides retail brokerage, investment advisory, and banking and trust services to individual investors, and retirement plan services, as well as other corporate brokerage services, to businesses and their employees. The Advisor Services segment provides custodial, trading, banking and trust, and support services, as well as retirement business services, to independent registered investment advisors (RIAs), independent retirement advisors, and recordkeepers. These services are further described in the segment discussion below.

Effective January 1, 2021, CSC changed the designation of its corporate headquarters from San Francisco, California to Westlake, Texas. The Company maintains a nationwide presence across a network of branches and operations centers, as well as several international locations, and our Westlake location provides a centrally located hub for the Company.

Business Strategy and Competitive Environment

Schwab was founded on the belief that all Americans deserve access to a better investing experience. Although much has changed in the intervening years, our purpose remains clear – to champion every client’s goals with passion and integrity. Guided by this purpose and our vision of creating the most trusted leader in investment services, management has adopted a strategy described as “Through Clients’ Eyes.”

This strategy emphasizes placing clients’ perspectives, needs, and desires at the forefront. Because investing plays a fundamental role in building financial security, we strive to deliver a better investing experience for our clients – individual investors and the people and institutions who serve them – by disrupting longstanding industry practices on their behalf and providing superior service. We also aim to offer a broad range of products and solutions to meet client needs with a focus on transparency, value, and trust. In addition, management works to couple Schwab’s scale and resources with ongoing expense discipline to keep costs low and ensure that products and solutions are affordable as well as responsive to client needs. In combination, these are the key elements of our “no trade-offs” approach to serving investors. We believe that following this strategy is the best way to maximize our market valuation and stockholder returns over time.

Management estimates that investable wealth in the United States (U.S.) (consisting of assets in defined contribution, retail wealth management and brokerage, and registered investment advisor channels, along with bank deposits) currently exceeds $65 trillion, which means the Company’s $8.52 trillion in client assets leaves substantial opportunity for growth. Our strategy is based on the principle that developing trusted relationships will translate into more assets from both new and existing clients, ultimately driving more revenue, and along with expense discipline and thoughtful capital management, will generate earnings growth and build long-term stockholder value.



- 1 -


THE CHARLES SCHWAB CORPORATION

Within Investor Services, our competition in serving individual investors spans brokerage, wealth management, and asset management firms, as well as banks, trust companies, financial technology companies, and retirement service providers. In the Advisor Services arena, we compete with institutional custodians, wirehouses, regional and independent broker-dealers, banks, and trust companies.

Across both segments, our key competitive advantages are:

Scale and Size of the Business – As one of the largest investment services firms in the U.S., we are able to spread operating costs and amortize new investments over a large base of clients, and harness the resources to evolve capabilities to meet client needs.
Operating Efficiency – Coupled with scale, our operating efficiency and sharing of infrastructure across different businesses creates a cost advantage that enables us to competitively price products and services while profitably serving clients of various sizes across multiple channels.
Operating Structure – Providing bank, wealth, and asset management services to broker-dealer clients helps serve a wider array of needs, thereby deepening relationships, enhancing the stability of client assets, and enabling diversified revenue streams.
Brand and Corporate Reputation – In an industry dependent on trust, Schwab’s reputation and brand across multiple constituents enable us to attract clients and employees while credibly introducing new products to the market.
Service Culture – Delivering a great client experience earns the trust and loyalty of clients and increases the likelihood that those clients will refer others.
Willingness to Disrupt – Management’s willingness to challenge the status quo, including our own business practices, to benefit clients fosters innovation and continuous improvement, which helps to attract more clients and assets.

Business Acquisition

Acquisition of TD Ameritrade

Effective October 6, 2020, the Company completed its acquisition of TD Ameritrade Holding Corporation, now TD Ameritrade Holding LLC (TDA Holding) and its consolidated subsidiaries (collectively referred to as “TD Ameritrade” or “TDA”). TD Ameritrade provides securities brokerage services, including trade execution, clearing services, and margin lending; and futures and foreign exchange trade execution services. TD Ameritrade has served individual retail investors and RIAs predominantly through the Internet, a national branch network, and relationships with RIAs. TD Ameritrade’s sources of net revenues have primarily consisted of trading revenue, net interest revenue, bank deposit account fees, and asset management and administration fees, which are reflected in our consolidated results. The acquisition of TD Ameritrade supports the Company’s ongoing efforts to enhance the client experience, to provide deeper resources for individual investors and RIAs including more robust trading capabilities, and to continue to improve our operating efficiency.

Over the course of 2023, the Company transitioned approximately $1.6 trillion in client assets across more than 15 million client accounts, including 7,000 RIAs, from TD Ameritrade to the Schwab platform across four transition groups. The Company has now completed the transition of RIAs and approximately 90% of all TD Ameritrade client accounts, and we expect to complete the remaining client transitions from TD Ameritrade to Schwab in a final transition group in May 2024. The Company has made significant progress in its efforts to reduce overlapping or redundant roles across the two firms and has largely completed the rationalization of CS&Co and TD Ameritrade, Inc. branch locations. Integration activities for the final client transition event and selective role reductions are expected to be completed in 2024. The TD Ameritrade broker-dealers, TD Ameritrade, Inc. and TDAC, will continue to serve their remaining clients prior to the final transition event, and the Company plans to subsequently wind-down the operations of the TD Ameritrade broker-dealers in 2024.

The Company has generally adopted Schwab platforms and systems, though we’ve leveraged certain material advantages in TD Ameritrade’s platforms, as exemplified by our comprehensive integration of TD Ameritrade’s thinkorswim® and thinkpipes® trading platforms, education, and tools into our offerings for retail and RIA clients. Recently, we launched Schwab Trading Powered by Ameritrade™, a reimagined trading experience made possible by the combination of the thinkorswim trading platform with Schwab’s trading capabilities on Schwab.com and Schwab Mobile. We have also incorporated TD Ameritrade Institutional’s customizable portfolio rebalancing solution, iRebal®, as part of our offering for independent advisor clients.




- 2 -


THE CHARLES SCHWAB CORPORATION

See Part II – Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations (Item 7) – Overview and Part II – Item 8 – Financial Statements and Supplementary Date (Item 8) – Note 15 for additional information on our integration of TD Ameritrade.

IDA Agreement

Concurrently with the execution of the Agreement and Plan of Merger, dated as of November 24, 2019, as amended (the Merger Agreement), CSC entered into an amended and restated insured deposit account agreement with TD Bank USA, National Association and TD Bank, National Association (together, the TD Depository Institutions) (the 2019 IDA agreement), which became effective October 6, 2020. On May 4, 2023, the Company executed the Second Amended and Restated Insured Deposit Account Agreement (2023 IDA agreement) with the TD Depository Institutions that replaced and superseded the 2019 IDA agreement. Consistent with the 2019 IDA agreement, in accordance with the 2023 IDA agreement, cash held in eligible brokerage client accounts is swept off-balance sheet to deposit accounts at the TD Depository Institutions. Schwab provides recordkeeping and support services to the TD Depository Institutions with respect to the deposit accounts for which Schwab receives an aggregate monthly fee. Under the 2023 IDA agreement, the service fee on client cash deposits held at the TD Depository Institutions remains at 15 basis points, as it was in the 2019 IDA agreement.

See Part II – Item 7 – Capital Management and Item 8 – Note 14 for additional information on the 2023 IDA agreement.

Products and Services

Schwab offers a broad range of products and services through intuitive end-to-end solutions, including robust digital capabilities, to address our clients’ varying investment and financial needs. Examples of these offerings include the following:

Brokerage – an array of full-feature brokerage accounts with equity and fixed income trading, margin lending, options trading, futures and forex trading, and cash management capabilities including certificates of deposit;
Mutual funds – third-party mutual funds through the Mutual Fund Marketplace®, including no-transaction-fee (NTF) mutual funds through the Mutual Fund OneSource® service, which also includes proprietary mutual funds, plus mutual fund trading and clearing services to broker-dealers;
Exchange-traded funds (ETFs) – an extensive offering of ETFs, including both proprietary and third-party ETFs;
Advice solutions – managed portfolios of both proprietary and third-party mutual funds and ETFs, separately managed accounts, customized personal advice for tailored portfolios, specialized planning, and full-time portfolio management;
Alternative investments – access to a variety of third-party alternative investments such as private equity and real estate on Schwab’s alternative investment platforms – Schwab Alternative Investment OneSource® and Schwab Alternative Investment Marketplace.
Banking – checking and savings accounts, first lien residential real estate mortgage loans (First Mortgages), home equity lines of credit (HELOCs), and pledged asset lines (PALs); and
Trust – trust custody services, personal trust reporting services, and administrative trustee services.

These investing products and services are made available through two business segments – Investor Services and Advisor Services. Schwab’s major sources of revenues are generated by both of the reportable segments, based on their respective levels of client assets and activity. Revenue is attributable to a reportable segment based on which segment has the primary responsibility for serving the client. The accounting policies of the reportable segments are the same as those described in Part II – Item 8 – Note 2.

Investor Services

Charles Schwab initially founded the Company 50 years ago to provide individual investors with access to the financial markets at a highly competitive cost. The Company has expanded offerings over time in response to client needs, aiming to provide a compelling and often disruptive solution in the marketplace. The Investor Services segment includes the following business units: Retail Investor; Workplace Financial Services, which includes Stock Plan Services, Retirement Plan Services, and Designated Brokerage Services (formerly included in the Compliance Solutions business unit, a portion of which was sold to a third-party in 2022); Mutual Fund Clearing Services; and Off-Platform Sales.

Through the Retail Investor business unit, we offer individual investors access to a broad set of products, tools, education, trading, and advisory solutions. We provide advice and guidance through various relationship models. And we offer award-winning and 24/7 service to all our clients, regardless of asset levels, via a multi-channel service delivery model, which includes online, mobile, telephone, and branch support.



- 3 -


THE CHARLES SCHWAB CORPORATION

We believe in the power of investing and the importance of planning in helping clients achieve their financial goals. At the core of our offer is our broad set of relationship models that help personalize the investing journey for our clients and offer them the choice of where, when, and how they do business with us. Financial Consultants, Active Trader Financial Consultants, and Wealth Consultants in Schwab’s branches and regional centers focus on building client relationships. We also have a range of roles to support clients with a broad set of specialized needs, including financial planning, managed investing, estate management, equity compensation and lending. Additionally, we have teams focused on supporting the advice and education needs of all our clients irrespective of asset levels at Schwab. To better meet the differentiated needs of our more affluent clients, we offer Schwab Private Client Services™ for clients with $1 million – $10 million and Schwab Private Wealth Services™ for clients with $10 million or more in total assets. Clients enrolled in these offerings have access to a dedicated relationship and service team, specialists, expedited processing, pricing discounts and product access.

Our advisory solutions span a broad range of discretionary and non-discretionary choices, with minimum investments starting as low as $5,000, making it accessible to a broad set of investors. Our premier advisory solution, Schwab Wealth Advisory™, features a personal advice relationship with a dedicated Wealth Advisor, supported by a team of wealth management professionals who provide individualized service, financial planning, a customized investment strategy developed in collaboration with the client, and ongoing guidance and execution. We offer referrals to independent RIAs in the Schwab Advisor Network® for clients seeking personalized portfolio management, financial planning, and wealth management solutions. We provide investors access to professional investment management in a diversified account that is invested exclusively in either mutual funds or ETFs through the Schwab Managed Portfolios™ and the Windhaven Investment Management® Strategies, or equity securities and ETFs through the ThomasPartners® Investment Management Strategies. Through our acquisition of Wasmer Schroeder in 2020, more than 20 fixed income strategies and separately managed account offerings have been made available to retail clients beginning in 2021, including two positive impact strategies and a multi-sector income strategy. We also refer investors who want to utilize a specific third-party money manager to direct a portion of their investment assets to the Schwab Managed Account program. Schwab Personalized Indexing® takes index investing a step further by allowing clients to own individual stocks that reflect the characteristics of an index in a professionally managed solution, enabling greater customization and tax efficiency. Schwab Intelligent Portfolios® is available for clients who are looking to have their assets professionally managed via a fully automated online investment advisory service. Schwab Intelligent Portfolios Premium®, a hybrid advisory service, offers clients an advisory service which combines our robo-advice technology with unlimited guidance provided by a CERTIFIED FINANCIAL PLANNER to make financial and investment planning more accessible to investors. Schwab Intelligent Income® is a low-cost solution designed to offer a simple, modern way to generate income from existing investment portfolios.

Further, given our belief in the importance of financial planning, we offer a broad set of planning capabilities addressing a variety of planning needs. Our solutions include simple, free digital retirement calculators, our complimentary digital Schwab Plan® available to all Schwab clients, as well as more complex planning solutions that are delivered by a Schwab representative who takes into account a client’s personal and financial goals to build a tailored financial plan.

To meet the specific needs of trading clients, Schwab offers integrated web-, mobile-, and software-based trading platforms, real-time market data, options trading, premium research, and multi-channel access, as well as sophisticated account and trade management features, risk management tools, and dedicated service support – all at highly competitive pricing. For example, clients that trade more actively can use these channels to access expert tools and extensive service capabilities – including experienced, knowledgeable teams of trading specialists, and integrated product offerings. In 2023, we introduced Schwab Trading Powered by Ameritrade™, which brings together the best of Schwab and Ameritrade’s trading platforms, comprehensive education and specialized service.

Schwab’s international business offers clients outside the U.S. the ability to invest in U.S. markets. For clients living inside the U.S., it offers multicurrency and foreign exchange trading. For all clients, it offers trading in foreign stocks. In addition, Schwab serves both foreign investors and non-English-speaking U.S. clients who wish to trade or invest in U.S. dollar-based securities.

We also offer clients a range of self-service education and support tools, providing quick and efficient access to a broad lineup of information, research, tools, and administrative services, which clients can access according to their needs. Educational tools include online and in-person workshops, live and on-demand webcasts, podcasts, interactive courses, and online information about investing. Additionally, we provide various online research and analysis tools that are designed to help clients achieve better investment outcomes. As an example of analysis tools available to clients, Schwab Equity Ratings® is a quantitative model-based stock rating system that provides all clients with ratings on approximately 3,000 stocks, assigning each equity a single grade: A, B, C, D, or F. Schwab Equity Ratings International®, an international ranking methodology, covers stocks of approximately 4,000 foreign companies. Another example of expanding access to investing includes Schwab Stock Slices™, a service which enables investors to purchase a single stock slice, or up to 30 different stock slices at once, from the S&P 500®,



- 4 -


THE CHARLES SCHWAB CORPORATION

commission-free through our online channels. We also offer Schwab Investing Themes™, a thematic investing offer that uses proprietary research and technology to identify trends, opportunities, and relevant companies and group them into themes in which clients can invest in just a few clicks.

We also offer equity compensation plan sponsors full-service recordkeeping for stock plans, stock options, restricted stock, performance shares, stock appreciation rights, and a full range of participant support services through our Stock Plan Services business unit. Specialized services for executive transactions and reporting, grant acceptance tracking, and other services are offered to employers to meet the needs of administering the reporting and compliance aspects of an equity compensation plan.

Retirement Plan Services offers a bundled 401(k) retirement plan product that provides retirement plan sponsors with extensive investment options, trustee or custodial services, and participant-level recordkeeping. Retirement plan design features, which increase plan efficiency and achieve employer goals, are also offered, such as automatic enrollment, automatic fund mapping at conversion, and automatic contribution increases. In addition to an open architecture investment platform, we offer access to low cost index mutual funds and ETFs. Individuals investing for retirement through 401(k) plans can take advantage of bundled offerings of multiple investment choices, education, and third-party advice. This third-party advice service is delivered online, by phone, or in person, including recommendations based on the core investment fund choices in their retirement plan and specific recommended savings rates. Services also include support for Roth 401(k) accounts, profit sharing, defined benefit plans, non-qualified plans, and Schwab Personal Choice Retirement Account®, a self-directed brokerage offering for retirement plans administered by Retirement Business Services within our Advisor Services segment.

Lastly, Mutual Fund Clearing Services provides open-end mutual fund trading, settlement, and related transactional services to banks, brokerage firms, and trust companies, and Off-Platform Sales offers proprietary mutual funds, ETFs, and collective trust funds (CTFs) outside the Company and not on the Schwab platform. They are included within the Investor Services segment given their leveraging of the products and services offered to individual investors.

Advisor Services

More than thirty years ago, Schwab supported a small group of entrepreneurial advisors who challenged the industry by creating independent firms. Through the Advisor Services segment, Schwab has become one of the largest providers of custodial, trading, banking, and support services to RIAs and their clients. We also provide retirement business services to independent retirement advisors and recordkeepers. Management believes that we can maintain our competitive position primarily through the efforts of our sales, support, technology, and business consulting teams, which are dedicated to helping RIAs grow, compete, and succeed in serving their clients. In addition to focusing on superior service, we utilize technology to provide RIAs with a highly-developed, scalable platform for administering their clients’ assets easily and efficiently. Advisor Services sponsors and hosts a variety of national, regional, local, and virtual events designed to help RIAs of all sizes and complexities identify and implement better ways to expand and efficiently manage their practices.

RIAs who custody client accounts at Schwab may use proprietary software that provides them with up-to-date client account information as well as trading capabilities. The Advisor Services website is the core platform for RIAs to conduct daily business activities online with Schwab, including viewing and managing client account information and accessing news and market information. The website provides account servicing capabilities for RIAs, including account opening, money movement, transfer of assets, trading, checking status, and communicating with our service team. The site provides multi-year archiving of statements, trade confirms, and tax reports, along with document search capabilities. We also provide access to integrations with third-party platforms, which support a variety of advisor needs including client relationship management, portfolio management systems, trade order management, and financial planning. As an example, we offer Schwab Advisor Portfolio Connect®, a simplified portfolio management solution that is available free of charge to advisors to manage Schwab accounts. It delivers core capabilities and features through an intuitive modern experience, without the need to download and reconcile data.

The Advisor Services website also provides interactive tools, educational content, and thought leadership for advisors turning independent. We offer a variety of services to help RIAs grow and manage their practices, including business, technology, and operations consulting on a range of topics critical to an RIA’s success, as well as an annual RIA benchmarking study to help firms understand key business metrics relative to peers. We also offer an array of services to help advisors establish their own independent practices through a robust prospect consulting offer. To support them throughout their transition, we offer access to business start-up and transition consultants, technology engineers, and dedicated service teams.

Schwab provides extensive educational materials, programs, and events to RIAs seeking to expand their knowledge of industry issues and trends, as well as sharpen their individual expertise and practice management skills. We conduct industry research on an ongoing basis, and hold a series of events and conferences every year to discuss topics of interest to RIAs, including business



- 5 -


THE CHARLES SCHWAB CORPORATION

strategies and best practices. Schwab sponsors and hosts the annual IMPACT® conference, which provides a national forum for the Company, RIAs, and other industry participants to gather and share information and insights, as well as a multitude of smaller events across the country each year.

RIAs and their clients have access to our broad range of products and services, including individual securities, mutual funds, ETFs, fixed income products, managed accounts, cash products, bank lending, and trust services. By functioning as the custodian, Schwab earns revenue associated with the underlying client assets, predominantly through net interest revenue and asset management and administration fees. In this capacity, we do not charge the RIA or end client a custody fee.

As part of our integration of TD Ameritrade, we have successfully added some of the best features from TD Ameritrade into our ongoing offerings. The Company recently launched the thinkpipes® trading platform, which offers real-time charting and efficient trading and allocation, into its ongoing offerings, as well as our customizable portfolio rebalancing solution, iRebal®, as part of our offering for RIA clients.

The Advisor Services segment also includes the Retirement Business Services business unit. Retirement Business Services provides trust, custody, brokerage, and software services to independent retirement plan advisors and independent recordkeepers. Through Retirement Business Services, retirement plan assets are held at Charles Schwab Trust Bank (Trust Bank) or trusteed by a separate, independent trustee, or through brokerage accounts at CS&Co. Retirement Business Services also offers the Schwab Personal Choice Retirement Account®, a self-directed brokerage offering for retirement plans. The Company and independent retirement plan providers work together to serve plan sponsors, combining the consulting and administrative expertise of the administrator with our investment, technology, brokerage, trust, and custodial services.

Sources of Net Revenues

Schwab’s largest sources of net revenues are net interest revenue, asset management and administration fees, trading revenue, and bank deposit account fees. These revenue streams are supported by the combination of our bank, broker-dealer, and asset management operating subsidiaries, each of which brings specific capabilities that enable us to provide clients with the products and services they are seeking.

Net interest revenue is the difference between interest generated on interest-earning assets and interest paid on funding sources. Schwab’s primary funding source for interest-earning assets is uninvested client cash balances held on our balance sheet as part of clients’ overall relationship with the Company. Schwab’s interest-earning assets are primarily comprised of high-quality fixed income securities, margin loans, and bank loans.

Asset management and administration fees are primarily earned from proprietary money market mutual funds, proprietary and third-party mutual funds and ETFs, and fee-based advisory solutions.

Trading revenue includes commissions earned for executing trades for clients in certain individual equities, options, futures, fixed income securities, and certain third-party mutual funds and ETFs; order flow revenue; and principal transactions revenue earned primarily from actions to support client trading in fixed income securities.

Bank deposit account fees are primarily recognized pursuant to the Company’s IDA agreement with the TD Depository Institutions. Under the IDA agreement, uninvested cash within eligible brokerage client accounts is swept off-balance sheet to deposit accounts at the TD Depository Institutions. Schwab provides recordkeeping and support services to the TD Depository Institutions for bank deposit account fees.

Regulation

As a participant in the securities, banking and financial services industries, Schwab is subject to extensive regulation under both federal and state laws by governmental agencies, supervisory authorities, and self-regulatory organizations (SROs). We are also subject to oversight by regulatory bodies in other countries in which we operate. These regulations affect our business operations and impose capital, client protection, and market conduct requirements.

Holding Company and Bank Regulation

CSC is a savings and loan holding company and is regulated, supervised, and examined by the Board of Governors of the Federal Reserve System (Federal Reserve). On March 16, 2021, CSC’s declaration electing to be treated as a Financial Holding Company (FHC) was deemed effective by the Federal Reserve. In addition to the activities that a savings and loan holding



- 6 -


THE CHARLES SCHWAB CORPORATION

company that has not elected to be treated as an FHC is permitted to conduct, an FHC may also engage in activities that are financial in nature or incidental to a financial activity (FHC Activities), including underwriting, dealing and making markets in securities, various insurance underwriting activities, and making merchant banking investments in non-financial companies.

The Federal Reserve has the authority to limit an FHC’s ability to conduct otherwise permissible FHC Activities if the FHC or any of its depository institution subsidiaries ceases to meet the applicable eligibility requirements, including requirements that the FHC and each of its depository institution subsidiaries maintain their status as “well-capitalized” and “well-managed.” If the Federal Reserve finds that an FHC fails to meet these requirements, the FHC and its subsidiaries may not commence any new FHC Activity, either de novo or through an acquisition, without prior Federal Reserve approval. The Federal Reserve may also impose any additional limitations or conditions on the conduct or activities of the FHC or any of its subsidiaries as it deems appropriate. If the FHC still fails to satisfy the applicable eligibility requirements 180 days after the Federal Reserve’s finding, the agency may require divestiture of all of the FHC’s depository institution subsidiaries or, alternatively, the FHC may elect to cease all of its FHC Activities. In addition, if any depository institution controlled by an FHC fails to maintain at least a “Satisfactory” rating under the Community Reinvestment Act of 1977 (CRA), the FHC and its subsidiaries are prohibited from engaging in additional FHC Activities. As a result of our election to be treated as an FHC and the election of our depository institution subsidiaries to be deemed savings associations under the Home Owners’ Loan Act (HOLA), a statutory prohibition limits those subsidiaries from making loans or other extensions of credit to any affiliate unless that affiliate engages, directly or indirectly, only in activities permissible under section 4(c) of the Bank Holding Company Act (BHC Act).

CSC’s three depository institution subsidiaries are CSB, CSC’s principal depository institution subsidiary, Charles Schwab Premier Bank, SSB (CSPB), and Trust Bank. CSB and CSPB are Texas-chartered savings banks headquartered in Westlake, Texas, and Trust Bank is a Nevada-chartered savings bank. Effective September 30, 2022, Trust Bank relocated its main office to Westlake, Texas and became a member of the Federal Reserve system. CSB and CSPB are currently regulated, supervised, and examined by the Federal Reserve, the Texas Department of Savings and Mortgage Lending (TDSML), the Consumer Financial Protection Bureau (CFPB), and the Federal Deposit Insurance Corporation (FDIC). Trust Bank is currently regulated, supervised, and examined by the Federal Reserve, the Nevada Financial Institutions Division, the CFPB, and the FDIC. CSC, CSB, CSPB, and Trust Bank are also subject to regulation and various requirements and restrictions under state and other federal laws.

This regulatory framework is designed to protect depositors and consumers, the safety and soundness of depository institutions and their holding companies, and the stability of the banking system as a whole. This framework affects the activities and investments of CSC and its subsidiaries and gives the regulatory authorities broad discretion in connection with their supervisory, examination and enforcement activities and policies. Below is a discussion of significant regulations.

Regulatory Capital and Liquidity Framework

Banking organizations are subject to the regulatory capital rules issued by the Federal Reserve and other U.S. banking regulators, including the Office of the Comptroller of the Currency and the FDIC. In addition to minimum risk-based capital requirements, banking organizations must hold additional capital, referred to as buffers, to avoid being subject to limits on capital distributions and discretionary bonus payments to executive officers.

The banking regulators have established four risk-based categories for determining the regulatory capital and liquidity requirements applicable to large U.S. banking organizations with $100 billion or more in total consolidated assets based on their total assets, cross-jurisdictional activity, weighted short-term wholesale funding, nonbank assets, and off-balance sheet exposure. CSC is generally subject to the requirements under Category III based on its total consolidated assets of between $250 billion and less than $700 billion and having less than $75 billion in cross-jurisdictional activity. If the average of our total consolidated assets for the four most recent calendar quarters is $700 billion or more, or the average of our cross-jurisdictional activity for the four most recent calendar quarters is $75 billion or more, we will move into Category II. As of December 31, 2023, CSC had total consolidated assets of approximately $493 billion and cross-jurisdictional activity of approximately $25 billion.

Capital requirements for Category III banking organizations include the generally applicable risk-based capital and Tier 1 leverage ratio requirements (the “standardized approach” framework), the minimum 3.0% supplementary leverage ratio, the stress capital buffer (CSC), the capital conservation buffer (banking subsidiaries), and the countercyclical capital buffer, which is currently 0%. As discussed below, starting in 2022, CSC, as a large savings and loan holding company became subject to the stress capital buffer requirement, which applies to risk-based capital ratios (Common Equity Tier 1 Capital, Tier 1 Capital, and Total Capital). Under the currently applicable revised capital requirements, Category III organizations are not subject to the “advanced approaches” regulatory capital framework and are permitted to opt out of including accumulated other comprehensive income (AOCI) in their regulatory capital calculations. CSC made this opt out election and excludes AOCI from its regulatory



- 7 -


THE CHARLES SCHWAB CORPORATION

capital. Category II organizations are not permitted to opt out of including AOCI in their regulatory capital calculations and have additional requirements for calculating risk-based capital ratios and risk-weighted assets.

In July 2023, the Federal Reserve, together with the Office of the Comptroller of the Currency and the FDIC, issued a notice of proposed rulemaking with amendments to the regulatory capital rules. Among other things, the proposed rules would require us to include AOCI in regulatory capital and to calculate our risk-weighted assets using a revised risk-based approach, a component of which is based on operational risk, phased in over a three-year transition period beginning July 1, 2025 and ending July 1, 2028. See Part II – Item 7 – Current Regulatory and Other Developments and Part II – Item 7 – Capital Management for additional information on these proposed regulatory changes.

Certain banking organizations with trading assets and trading liabilities above certain thresholds or greater than a certain percent of total assets are subject to the Market Risk Rule and must adjust their risk-based capital ratios to reflect a measure of market risk of their trading activities, perform calculations to measure market risk, including back-testing, and make regular quantitative and qualitative public disclosures. CSC is subject to the rule and the related Market Risk Rule required disclosures. CSC began incorporating market risk capital for the period ending December 31, 2022, and while CSC is required to make adjustments to its risk-weighted assets related to de minimis positions, those adjustments have not significantly impacted our risk-based capital ratios nor have they had a current impact on CSC’s activities.

The U.S. Liquidity Coverage Ratio (LCR) rule is designed to promote resiliency of the banking sector by requiring that certain large U.S. banking organizations (Covered Companies) maintain a liquidity risk profile which ensures that they have sufficient High Quality Liquid Assets (HQLA), such as central bank reserves, certain government securities, and eligible corporate debt that can be converted easily and quickly to cash, to survive a significant stress event lasting 30 days. The LCR rule requires Covered Companies, including Schwab, to maintain an amount of HQLA that are unencumbered and controlled by the Covered Company’s liquidity management function sufficient to meet a designated percentage of their total stressed net cash outflows over a prospective 30 calendar-day period, as calculated in accordance with the LCR rule. Schwab is subject to the LCR and public disclosure requirement on a consolidated basis. On a quarterly basis the Company is required to disclose the average daily LCR over the quarter, and the Company also discloses quantitative and qualitative information over certain portions of the Company’s LCR components. Under the LCR rule, Schwab is required to maintain HQLA to cover 100% of the total stressed net cash outflows on a daily basis. In addition, HQLA that are held at the Company’s bank subsidiaries in excess of the subsidiaries’ total net cash outflows, and are not transferable to non-bank affiliates, are excluded by rule from the Company’s eligible HQLA.

The final Net Stable Funding Ratio (NSFR) rule was jointly adopted by the Federal Reserve, the Office of the Comptroller of the Currency, and FDIC in 2020 to strengthen the resilience of large bank and savings and loan holding companies by requiring them to maintain a minimum level of stable funding based on the liquidity characteristics of the holding company’s assets, commitments, and derivative exposures over a one-year time horizon. The requirement is expressed as a ratio of a banking organization’s available stable funding (ASF) to its required stable funding (RSF). Under the NSFR rule, Schwab is required to maintain ASF in an amount equal to 100% of its RSF on an ongoing, daily basis. Beginning with the first and second quarters of 2023, banking organizations subject to the rule are required to publicly disclose their quarterly NSFRs on a semi-annual basis.

Capital Stress Testing

Under the current Federal Reserve capital stress testing rules, savings and loan holding companies that are Category III banking organizations and state member banks with total consolidated assets over $250 billion are required to disclose the results of company-run stress tests in even-numbered years. In the most recent cycle in 2022, CSC and CSB conducted company-run stress tests, reported the results of their stress testing to the Federal Reserve, and published a summary of their stress test results.

Pursuant to the Federal Reserve’s requirements, Category III savings and loan holding companies are also subject to an annual supervisory stress testing requirement in which the Federal Reserve conducts its own stress testing analysis to evaluate the ability of a holding company to absorb losses in specified economic and financial conditions over a nine-quarter planning horizon using such analytical techniques as the agency determines are appropriate. This supervisory stress testing requirement went into effect for CSC beginning with the 2022 stress testing cycle.

Pursuant to the Federal Reserve’s 2021 rule, savings and loan holding companies with total consolidated assets of $100 billion or more, including CSC, are subject to an annual Comprehensive Capital Analysis and Review (CCAR) process, which requires submission of an annual capital plan to the Federal Reserve. The rule also imposes a stress capital buffer requirement, floored at 2.5 percent of risk-weighted assets, that replaced CSC’s 2.5 percent capital conservation buffer. The capital plan requirement became effective for CSC with the 2022 CCAR cycle, and in June 2022, the Company received the results of the Federal



- 8 -


THE CHARLES SCHWAB CORPORATION

Reserve’s 2022 CCAR. These results included the Federal Reserve’s estimate of CSC’s minimum capital ratios under the supervisory severely adverse scenario for the nine-quarter horizon beginning December 31, 2021 and ending March 31, 2024. Based on these results, CSC’s calculated stress capital buffer was below the 2.5% minimum, resulting in a stress capital buffer at the 2.5% floor. This 2.5% stress capital buffer became applicable on October 1, 2022. Based on the results of the Federal Reserve’s 2023 CCAR, a 2.5% stress capital buffer continues to be applicable to Schwab for the four-quarter period that began October 1, 2023. See Part II – Item 8 – Note 23 for additional information regarding our capital requirements.

Additional Enhanced Prudential Standards

In addition to the capital stress testing regime discussed above, the Federal Reserve’s enhanced prudential standards rules also extend the applicability of certain additional enhanced prudential standards to large savings and loan holding companies, with the specific requirements tailored based on the same four-category framework utilized in the interagency regulatory capital and liquidity rules. These additional enhanced prudential standards, applicable to large U.S. bank holding companies under section 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), include: risk management and risk committee requirements; liquidity risk management, stress testing, and buffer requirements; and single counterparty credit limits. CSC was required to comply with these risk management and risk committee requirements, as well as the liquidity risk-management, stress testing, and buffer requirements commencing on January 1, 2021. The single counterparty credit limits went into effect for CSC on January 1, 2022.

In August 2023, the Federal Reserve, together with the Office of the Comptroller of the Currency and the FDIC, issued a proposed rulemaking on long-term debt requirements for certain large banking organizations. See Part II – Item 7 – Current Regulatory and Other Developments for discussion of the rule proposal.

Source of Strength

The Dodd-Frank Act codified the Federal Reserve’s long-held position that a depository institution holding company must serve as a source of financial strength for its subsidiary depository institutions, the so-called “source of strength doctrine.” In effect, the holding company may be compelled to commit resources to support the subsidiary depository institution in the event the subsidiary is in financial distress.

Insured Depository Institution Resolution Plans

The FDIC requires insured depository institutions with total consolidated assets of $50 billion or more to submit to the FDIC periodic plans providing for their resolution by the FDIC in the event of failure (resolution plans or so-called “living wills”) under the receivership and liquidation provisions of the Federal Deposit Insurance Act. Under this requirement, CSB has been required to file with the FDIC a periodic resolution plan demonstrating how the bank could be resolved in an orderly and timely manner in the event of receivership such that the FDIC would be able to: ensure that the bank’s depositors receive access to their deposits within one business day; maximize the net present value of the bank’s assets when disposed of; and minimize losses incurred by the bank’s creditors. In June 2021, the FDIC announced a modified resolution plan approach for insured depository institutions with total consolidated assets of $100 billion or more which established a three-year cycle submission frequency, streamlined content requirements, and placed enhanced emphasis on engagement with firms. CSB most recently submitted a resolution plan pursuant to these requirements in November 2022. In August 2023, the FDIC issued a proposal to revise its rule on insured depository institution resolution planning. The proposal would revise the requirements regarding the content and timing of resolution submissions. Covered insured depository institutions would be required to file their respective resolution plans or informational filings biennially with supplemental information to be provided in off-years, starting in 2025 if the rule is finalized as proposed. As a savings and loan holding company, CSC is not subject to a separate holding company resolution plan requirement.

Deposit Insurance Assessments

The FDIC’s Deposit Insurance Fund (DIF) provides insurance coverage for certain deposits, generally up to $250,000 per depositor per account ownership type, and is funded by quarterly assessments on insured depository institutions. The FDIC uses a risk-based deposit premium assessment system that, for large insured depository institutions with at least $10 billion in total consolidated assets, uses a scorecard method based on a number of factors, including the institution’s regulatory ratings, asset quality and brokered deposits. The deposit insurance assessment base is calculated as average consolidated total assets minus average tangible equity.




- 9 -


THE CHARLES SCHWAB CORPORATION

In October 2022, the FDIC adopted a final rule to increase the initial base deposit insurance assessment rates by two basis points, which became effective for the first quarterly assessment period of 2023. The FDIC has stated that this change is intended to raise the FDIC’s DIF reserve ratio to the minimum threshold within the FDIC’s established DIF restoration plan, and will remain in effect until the DIF reserve ratio meets the FDIC’s long-term goal of 2%. In November 2023, the FDIC approved a special assessment to recover losses incurred by the DIF in 2023; see Part II – Item 7 – Current Regulatory and Other Developments for additional information regarding the special assessment.

Brokered Deposits

The FDIC’s amended brokered deposits rule became effective April 1, 2021, which established a new framework for determining whether deposits made through arrangements between third parties and depository institutions constitute brokered deposits and more specifically to clarify the circumstances under which broker-dealers that place deposits with depository institutions through brokerage sweep arrangements, such as CS&Co and TDAC, qualify for the “primary purpose exception” from the definition of a deposit broker. Under this framework, the FDIC established a “25 percent” business relationship designated exception where a broker-dealer or other third-party may qualify for the primary purpose exception by filing a notice with the FDIC indicating that less than 25 percent of its customer assets under administration for a particular business line are placed at depository institutions. Funds swept by our broker-dealer subsidiaries to CSB and Schwab’s other depository institution subsidiaries continue to qualify for the primary purpose exception under this framework.

Community Reinvestment Act

The CRA requires the primary federal bank regulatory agency for each of Schwab’s depository institution subsidiaries to assess the subsidiary’s record in meeting the credit needs of the communities served by the bank, including low- and moderate-income neighborhoods and persons. Institutions are assigned one of four ratings (“outstanding,” “satisfactory,” “needs to improve,” or “substantial noncompliance”). The failure of an institution to receive at least a “satisfactory” rating could inhibit the institution or its holding company from undertaking certain activities, including acquisitions or opening branch offices. In October 2023, the Federal Reserve, together with the Office of the Comptroller of the Currency and the FDIC, issued a final rule that makes extensive revisions to the regulations implementing the CRA. See Part II – Item 7 – Current Regulatory and Other Developments for additional information.

Volcker Rule

CSC and its subsidiaries are subject to the Volcker Rule, which generally prohibits proprietary trading or acquiring or retaining an ownership interest in, sponsoring, or having certain relationships with hedge funds and private equity funds, subject to certain exemptions, in each case as the applicable terms are defined in the Volcker Rule and the implementing regulations.

Consumer Financial Protection

The CFPB has broad rulemaking, supervisory and enforcement authority for a wide range of federal consumer protection laws relating to financial products. The CFPB has examination and primary enforcement authority over depository institutions with $10 billion or more in consolidated total assets.

Financial Services Regulation

Bank Secrecy Act of 1970 and USA PATRIOT Act of 2001

CSC and its subsidiaries that conduct financial services activities are subject to the Bank Secrecy Act of 1970 (BSA), as amended by the USA PATRIOT Act of 2001, which requires financial institutions to develop and implement programs reasonably designed to achieve compliance with these regulations. The BSA and USA PATRIOT Act include a variety of monitoring, recordkeeping and reporting requirements (such as currency transaction reporting and suspicious activity reporting), as well as identity verification and client due diligence requirements which are intended to detect, report and/or prevent money laundering and the financing of terrorism. In addition, CSC and various subsidiaries of the Company are subject to U.S. sanctions programs administered by the Office of Foreign Assets Control.




- 10 -


THE CHARLES SCHWAB CORPORATION

Broker-Dealer, Futures Commission Merchant (FCM), Forex Dealer Member (FDM), and Investment Advisor Regulation

Our principal broker-dealer subsidiaries, CS&Co, TD Ameritrade, Inc., and TDAC, are each registered as a broker-dealer with the U.S. Securities and Exchange Commission (SEC or Commission), the fifty states, the District of Columbia, the U.S. Virgin Islands, and the Commonwealth of Puerto Rico. CS&Co, CSIM, and certain of our other subsidiaries are registered as investment advisors with the SEC. Charles Schwab Futures and Forex LLC (CSFF) is registered as an FCM and FDM with the Commodity Futures Trading Commission (CFTC).

Much of the regulation of broker-dealers has been delegated to SROs. Our principal broker-dealers are each members of the Financial Industry Regulatory Authority, Inc. (FINRA) and the Municipal Securities Rulemaking Board (MSRB). In addition, CS&Co and TDAC are members of Nasdaq Stock Market, Cboe EDGX, and MEMX LLC. In addition to the SEC, the primary regulators of our principal broker-dealers are FINRA and, for municipal securities, the MSRB. The National Futures Association (NFA) is the primary regulator for CSFF’s futures, commodities, and forex trading activities.

The principal purpose of regulating these entities is the protection of clients and securities markets. The regulations cover all aspects of the securities business, including, among other things, sales and trading practices, publication of research, margin lending, uses and safekeeping of clients’ funds and securities, capital adequacy, recordkeeping and reporting, fee arrangements, order flow revenue from securities exchanges and market makers, disclosure to clients, fiduciary duties, and the conduct of directors, officers, and employees.

Our principal broker-dealer entities are subject to Rule 15c3-1 under the Securities Exchange Act of 1934 (the Uniform Net Capital Rule) and related SRO requirements. The CFTC and NFA also impose net capital requirements. The Uniform Net Capital Rule specifies minimum capital requirements intended to ensure the general financial soundness and liquidity of broker-dealers. CSC itself is not a registered broker-dealer and it is not subject to the Uniform Net Capital Rule.

The Uniform Net Capital Rule prohibits broker-dealers from paying cash dividends, making unsecured advances or loans or repaying subordinated loans if such payment would result in a net capital amount of less than 5% of aggregate debit balances or less than 120% of its minimum dollar requirement.

In addition to net capital requirements, as a self-clearing broker-dealer, CS&Co, and as a clearing broker-dealer, TDAC, are subject to cash deposit and collateral requirements with clearing houses, such as the Depository Trust & Clearing Corporation and Options Clearing Corporation, which may fluctuate significantly from time to time based upon the nature and size of clients’ trading activity and market volatility.

The structure and regulation of the securities markets have a significant impact on the Company’s business and operations, including its sources of net revenues. See Part II – Item 7 – Current Regulatory and Other Developments for proposed regulatory changes, including in regard to equity market structure.

As a result of our operations in countries outside the U.S., we are also subject to rules and regulations issued by certain foreign authorities, including the Financial Conduct Authority in the United Kingdom, the Securities and Futures Commission in Hong Kong, the Monetary Authority of Singapore in Singapore, and the Ministry of Finance in the People’s Republic of China.

Human Capital

We believe that hiring people who share our corporate purpose of helping clients achieve their financial goals is an essential element of executing our “Through Clients’ Eyes” strategy, and we seek to attract, retain, and motivate the talent Schwab needs to successfully serve our clients and grow our business. As of December 31, 2023, Schwab had full-time, part-time, and temporary employees, and persons employed on a contract basis, that represented the equivalent of approximately 33,000 full-time employees.

Schwab offers a compensation package that rewards both employee and company performance. The package encompasses an array of compensation components in addition to base pay including performance-based incentive pay, equity awards, recognition awards, and a range of health and wellness benefits. We also offer benefits and resources designed to help our employees achieve their financial goals, including a 401(k) plan, an employee stock purchase plan, financial planning consultations, and disability and life insurance options. In addition, Schwab offers programs to help with employee career growth including mentorship, development, and leadership programs as well as reimbursement for qualified business-related education and training. We also encourage and empower employees to volunteer in the communities where we live and work, offering paid time off for every employee to volunteer in his or her community. The Company offers a hybrid work and



- 11 -


THE CHARLES SCHWAB CORPORATION

flexibility approach to work arrangements that is designed to balance the importance our employees place on workplace flexibility with the benefits of in-person interactions to train and learn from one another, build human connections, and maintain Schwab’s culture as we serve our clients.

We know that through workplace diversity, we gain a wider range of perspectives and experiences, which supports our strategy and helps us better serve our clients. We focus on attracting a diversity of talent by maintaining a strong employer brand and expanding where and how we meet prospective employees. We recruit from underrepresented communities through targeted campus recruiting, scholarship programs, and partnerships with professional organizations. For Schwab employees, we support a number of Employee Resource Groups (ERGs) which are employee-driven and provide support, leadership development opportunities, and connection. Our ERGs are centered around employees who share characteristics or life experiences and are committed to enhancing diversity and inclusion at Schwab. Additionally, our leaders are explicitly responsible for creating an environment where all people can do their best work, and for fostering the development of high-performance teams that recognize the value of diverse perspectives, skills, and backgrounds. We regularly request feedback from our employees through surveys.

Available Information

Schwab files annual, quarterly, and current reports, proxy statements, and other information with the SEC. The SEC filings are available to the public over the internet on the SEC’s website at https://www.sec.gov.

On our website, https://www.aboutschwab.com, we post the following filings after they are electronically filed with or furnished to the SEC: annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934. In addition, we post to the website the Dodd-Frank stress test results, our regulatory capital disclosures based on Basel III, our average LCR, and our average NSFR.

All such filings are available free of charge either on our website or by request via email (investor.relations@schwab.com), or mail (Charles Schwab Investor Relations at 211 Main Street, San Francisco, CA 94105).

Item 1A.     Risk Factors

We face a variety of risks that may affect our operations, financial results, or stock price and many of those risks are driven by factors that we cannot control or predict. The following discussion addresses those risks that management believes are the most significant, although there may be other risks that could arise, or may prove to be more significant than expected, that may affect our operations or financial results.

For a discussion of our risk management governance and processes, including operational risk, compliance risk, credit risk, market risk, and liquidity risk, see Risk Management and Capital Management in Part II – Item 7. For additional information regarding cybersecurity risk, see Item 1C. Cybersecurity.

Economic and Market Risks

Developments in the business, economic, and geopolitical environment could negatively impact our business.

Our business can be adversely affected by the general environment – economic, corporate, securities market, regulatory, and geopolitical developments all play a role in client asset valuations, trading activity, interest rates, and overall investor engagement, and are outside of our control. Deterioration in the housing and credit markets and decreases in securities valuations negatively impact our results of operations and capital resources.

The monetary policies of the Federal Reserve, which regulates the supply of money and credit in the United States, have a significant effect on our operating results. Actions taken by the Federal Reserve, including changes in its target funds rate and its own balance sheet management, are difficult to predict and can affect our financial results, including net interest revenue and bank deposit account fees. These policies can have implications for clients’ allocation to cash as we experienced in 2022 and 2023, and higher or lower client cash balances have an impact on our capital requirements, as well as liquidity implications if such changes in allocation are sudden. Investor sentiment and market and trading dynamics can affect client preferences and security selection, and can impact transactions and asset-based revenues.



- 12 -


THE CHARLES SCHWAB CORPORATION

A significant change in client cash allocations could negatively impact our income.

We rely heavily on client cash balances to generate revenue. Cash awaiting investment in a portion of our client brokerage accounts is swept to our banking subsidiaries and those bank deposits are then used to extend loans to clients and purchase investment securities. We also sweep a portion of such cash to the TD Depository Institutions pursuant to the 2023 IDA agreement, through which we earn bank deposit account fees. A significant reduction in our clients’ allocation to cash, a change in the allocation of that cash, or a transfer of cash away from the Company, would likely reduce our income. As a result of the rapid increases in short-term interest rates in 2022 and 2023, the Company saw a significant decrease in clients’ asset allocation to sweep cash and greater client investment in higher-yielding alternatives at Schwab such as fixed income investments and proprietary purchased money market funds. To help facilitate these changes in client cash allocations, the Company has utilized higher-cost supplemental funding sources, which has negatively impacted the Company’s net income.

Significant interest rate changes could affect our profitability.

The direction and level of interest rates are important factors in our earnings. A decline in interest rates may have a negative impact on our net interest revenue and our bank deposit account fee revenue. The Company’s interest-earning assets include significant holdings of investment securities, which include fixed- and floating-rate debt securities, including substantial holdings of mortgage-backed securities, as well as mortgages. The Company could be adversely affected by a decline in interest rates if the rates that the Company earns on interest-earning assets decline more than the rates that the Company pays on its funding sources, or if prepayment rates increase on the mortgages and mortgage-backed securities that the Company holds. A low interest rate environment may also have a negative impact on our asset management and administration fee revenues when we have to waive a portion of our management fees, as we experienced in 2020 and 2021, for certain Schwab-sponsored money market mutual funds in order to continue providing a positive return to clients. A decline in interest rates may also negatively impact our bank deposit account fee revenue, which is earned primarily pursuant to the 2023 IDA agreement.

A rise in interest rates may cause our funding costs to increase if market conditions or the competitive environment induces us to raise our interest rates to avoid losing deposits, or replace deposits with higher-cost funding sources without offsetting increases in yields on interest-earning assets, which can reduce the benefit of higher market interest rates to our net interest revenue, as we experienced in 2022 and 2023. The rapid increases in market interest rates recently experienced have also contributed to increased unrealized losses on our investment securities portfolios. Increased unrealized losses on investment securities or other assets on our balance sheet can reduce market or client confidence in us, which could limit our ability to attract new client assets and accounts or result in the transfer of client assets and accounts from the Company.

A rise in interest rates may also reduce our bank deposit account fee revenue, as clients may reallocate assets out of bank deposit account balances and into higher-yielding investment alternatives, as we experienced in 2022 and 2023. The 2023 IDA agreement involves certain commitments, including the maintenance of prescribed minimum and maximum IDA balances, that limit our ability to respond to changes in interest rates and may impact our profitability and bank deposit account fee revenue. The bank deposit account fee revenue that we earn related to the IDA agreement may be less than the net interest revenue that we could have earned if the deposit balances were swept to our banking subsidiaries rather than the TD Depository Institutions. When we are permitted to reduce the IDA balances, we can only move the balances to our banking subsidiaries if we have sufficient capital.

Problems encountered by other financial institutions and responsive measures to manage such problems could adversely affect financial markets generally, could have an adverse effect on our financial position or results of operations, and have indirect adverse effects on us.

Concerns regarding the soundness or creditworthiness of other financial institutions can cause substantial disruption within the financial markets and have negative impacts for us and our industry, including reductions in availability of liquidity, higher borrowing costs, and higher costs of capital. Such concerns regarding one or more financial institutions may also advance public concerns regarding Schwab or the financial services industry more broadly, which could harm our reputation and adversely affect our results of operations and financial condition, even if underlying matters impacting other financial institutions are of limited or no direct applicability to us. Financial institutions are interrelated through trading, clearing, or other relationships, and, as a result, concerns about the financial condition of one or more institutions could lead to significant market-wide liquidity and credit problems, losses, or defaults by other institutions. This risk may adversely affect financial intermediaries, such as broker-dealers, banks, clearing houses, securities exchanges, market makers, and others, with which we interact on a daily basis, and therefore, could adversely affect us.

- 13 -


THE CHARLES SCHWAB CORPORATION

Events affecting the financial services industry may also result in potentially adverse changes to laws or regulations governing banks and savings and loan holding companies or result in the imposition of restrictions through supervisory or enforcement activities, including higher capital or liquidity requirements, which could have a material impact on our business. Following the failure of several U.S. banks in 2023, the U.S. federal banking agencies proposed rules that would significantly impact our regulatory capital requirements, including requiring us to include AOCI in regulatory capital, as well as rules that would require minimum levels of eligible long-term debt at CSC and our banking subsidiaries. As a result of increased regulatory expectations regarding capital requirements applicable to the Company, we have been taking, and continue to take, measures to increase our capital, including the cessation of share repurchases. In addition, the cost of resolving the recent bank failures has resulted in increased FDIC costs and may prompt the FDIC to further increase its premiums or to issue additional special assessments, which could have a material negative impact on our profitability and our business.

Liquidity Risk

A significant decrease in our liquidity could negatively affect our business as well as reduce client confidence in us.

Maintaining adequate liquidity is crucial to our business operations, including transaction settlement, custody requirements, and lending commitments, among other liquidity needs. We meet our liquidity needs primarily from working capital and cash generated by client activity as well as external financing. Fluctuations in client cash or deposit balances, as well as market conditions or changes in regulatory treatment of client deposits, may affect our ability to meet our liquidity needs. A reduction in our liquidity position could reduce client confidence in us, which could result in the transfer out of client assets and accounts, or could cause us to fail to satisfy our liquidity requirements, including the LCR. In addition, if our broker-dealer or depository institution subsidiaries fail to meet regulatory capital guidelines, or if a depository institution subsidiary is unable to obtain regulatory approval, when required, to declare a dividend, regulators could limit the subsidiaries’ ability to upstream funds to CSC or limit their operations, which could reduce CSC’s liquidity and adversely affect its ability to repay debt, pay dividends on CSC’s preferred stock and common stock, repurchase its shares, or redeem its preferred stock. In addition, CSC may need to provide additional funding to such subsidiaries.

Factors which may adversely affect our liquidity position include CS&Co and TDAC having temporary liquidity demands due to timing differences between brokerage transaction settlements and the availability of segregated cash balances, fluctuations in cash held in banking or brokerage client accounts, such as the significant client reallocation from sweep cash to higher-yielding investments that we experienced in 2022 and 2023 in response to rapid interest rate increases, a dramatic increase in our lending activities (including margin, mortgage-related, and personal lending), increased capital requirements, changes in regulatory guidance or interpretations, other regulatory changes, or a loss of market or client confidence in us resulting in unanticipated withdrawals of client funds. As a member firm of securities and derivatives clearing houses, we are required to deposit cash, stock and/or government securities for margin requirements and to clearing funds. The margin requirements may fluctuate significantly from time to time based upon the nature and size of clients’ trading activity and market volatility, and member firms like us have been required to deposit additional funds. Clearing houses could also require additional funds from member firms if a clearing member defaults on its obligations to the clearing house in an amount larger than its own margin and clearing fund deposits.

When available cash is not sufficient for our liquidity needs, we may be required to seek external financing. During periods of disruptions in the credit and capital markets, potential sources of external financing could be reduced, and borrowing costs could increase. Although CSC, CS&Co, and TDAC maintain uncommitted, unsecured bank credit lines and CSC has a commercial paper issuance program, as well as a universal shelf registration statement filed with the SEC which can be used to sell securities, financing may not be available on acceptable terms or at all due to market conditions or disruptions in the credit markets. In addition, a downgrade in the Company’s credit ratings could increase its borrowing costs and limit its access to the capital markets.

When short-term interest rates rapidly increase, as they did in 2022 and 2023, client movement of certain cash balances out of our sweep features and into higher-yielding alternatives generally increases. When these outflows outpace excess cash on hand and cash generated by maturities and paydowns on our investment and loan portfolios, as they did in 2022 and 2023, we may need to rely on temporary supplemental funding, such as advances under Federal Home Loan Bank (FHLB) secured credit facilities, borrowings under repurchase agreements with external financial institutions, issuances of brokered certificates of deposit (CDs), or other sources of funding, which have higher costs and could be subject to limitations on availability. In addition, to access new FHLB advances or roll over existing advances, our banking subsidiaries must maintain positive tangible capital, as defined by the Federal Housing Finance Agency. Larger unrealized losses on our available for sale (AFS) portfolio due to higher market interest rates negatively impact our capital position inclusive of AOCI, including our tangible capital.

- 14 -


THE CHARLES SCHWAB CORPORATION

Compliance Risks

Extensive regulatory supervision of our businesses may subject us to significant penalties or limitations on business activities.

As a participant in the securities, banking, and financial services industries, we are subject to extensive regulation under federal, state, and foreign laws by governmental agencies, supervisory authorities and SROs. The costs and uncertainty related to complying with such regulations continue to increase. These regulations affect our business operations and impose capital, client protection, and market conduct requirements on us as well as restrictions on the activities that we are allowed to conduct. We become subject to increasing regulatory scrutiny as we grow.

Regulators have broad discretion in connection with their supervisory and enforcement activities and examination policies, and could prevent us from pursuing our business strategy. Regulators could also limit our ability to grow, including adding assets, launching new products, making acquisitions, and undertaking strategic investments. Our banking regulators could require CSC and/or our banking subsidiaries to hold more capital, increase liquidity, or limit their ability to pay dividends or CSC’s ability to repurchase or redeem shares. Despite our efforts to comply with applicable legal requirements, there are a number of risks, particularly in areas where applicable laws or regulations may be unclear or where regulators could revise their previous guidance. Any enforcement actions or other proceedings brought by our regulators against us or our affiliates, officers or employees could result in fines, penalties, cease and desist orders, enforcement actions, suspension, disqualification or expulsion, or other disciplinary sanctions, including limitations on our business activities, any of which could harm our reputation and adversely affect our results of operations and financial condition.

While we maintain systems and procedures designed to ensure that we comply with applicable laws and regulations, violations could occur. In addition, some legal/regulatory frameworks provide for the imposition of fines or penalties for noncompliance even though the noncompliance was inadvertent or unintentional and even though systems and procedures reasonably designed to prevent violations were in place at the time. There may be other negative consequences resulting from a finding of noncompliance, including restrictions on certain activities. Such a finding may also damage our reputation and our relationships with our regulators and could restrict the ability of institutional investment managers to invest in our securities.

Legislation or changes in rules and regulations could negatively affect our business and financial results.

New legislation, rules, regulations and guidance, or changes in the interpretation or enforcement of existing federal, state, foreign and SRO rules, regulations and guidance, including changes relating to mutual funds, money market funds, standards of conduct with clients, conflicts of interest, regulatory treatment of deposit accounts, CRA, changes in required minimum capital and capital structure, and changes in equity market structure, including rules relating to order routing and order-related revenues, may directly affect our operations and profitability or our specific business lines. Recently, the SEC has proposed or adopted a number of new rules, and these new or proposed rules involve sweeping changes that could require significant shifts in industry operations and practices, thereby increasing uncertainty for markets and investors. The U.S. federal banking agencies have recently proposed rules regarding regulatory capital and long-term debt, and compliance with these proposed rules may result in increased costs and reduce our net income. In addition, the U.S. Department of Labor recently proposed rules to significantly broaden the definition of “fiduciary” under the Employee Retirement Income Security Act of 1974, which, among other requirements, would subject broker-dealers who provide non-discretionary investment advice to retirement plans to a “best interest” standard. Our profitability could also be affected by rules and regulations that impact the business and financial communities generally, including changes to the laws governing taxation, electronic commerce, client privacy and security of client data. In addition, the rules and regulations could result in limitations on the lines of business we conduct, modifications to our business practices, more stringent capital and liquidity requirements, increased deposit insurance assessments or additional costs and could limit our ability to return capital to stockholders. These changes may also require us to invest significant management attention and resources to evaluate and make necessary changes to our compliance, risk management, treasury, and operations functions.

Failure to meet capital adequacy and liquidity guidelines could affect our financial condition.

CSC, together with its banking, broker-dealer, and FCM/FDM subsidiaries, must meet certain capital and liquidity standards, subject to qualitative judgments by regulators about the adequacy of our capital and our internal assessment of our capital needs. The Uniform Net Capital Rule limits the ability of our broker-dealer entities to transfer capital to CSC and other affiliates. New regulatory capital, liquidity, capital planning, and stress testing requirements may limit or otherwise restrict how we utilize our capital, including paying dividends, stock repurchases, and redemptions, and may require us to increase our capital and/or liquidity or to limit our growth. Failure by either CSC or its banking subsidiaries to meet minimum capital requirements could
- 15 -


THE CHARLES SCHWAB CORPORATION

result in certain mandatory and additional discretionary actions by regulators that, if undertaken, could have a negative impact on us. In addition, failure by CSC or our banking subsidiaries to maintain a sufficient amount of capital to satisfy their stress capital buffer (CSC) or capital conservation buffer (banking subsidiaries) and countercyclical capital buffer requirements would result in restrictions on our ability to make capital distributions and discretionary cash bonus payments to executive officers. Any requirement that we increase our regulatory capital, replace certain capital instruments which presently qualify as Tier 1 Capital, or increase regulatory capital ratios or liquidity, could require us to liquidate assets, deleverage or otherwise change our business and/or investment plans, which may adversely affect our financial results. Issuing additional common stock would dilute the ownership of existing stockholders.

CSC is subject to the CCAR process, which requires submission of an annual capital plan, and determination of CSC’s stress capital buffer. The plan must include a description of all planned capital actions, including dividends or stock repurchases, over a nine-quarter planning horizon beginning with the first quarter of the calendar year the capital plan is submitted. CSC’s risk-based capital ratios must exceed the regulatory minimum plus the stress capital buffer. The stress capital buffer could make us subject to progressively more stringent constraints on capital actions if we approach our minimum ratios. This could lead to restrictions on our ability to pay or increase dividends or otherwise return capital to stockholders.

If the average of CSC’s total consolidated assets for four consecutive calendar quarters reaches $700 billion, or if the average of cross-jurisdictional activity for four consecutive calendar quarters reaches $75 billion, CSC will become subject to more stringent Category II requirements, including annual stress testing, the advanced approaches framework, and the inability to opt out of including AOCI in regulatory capital calculations. At December 31, 2023, CSC had approximately $493 billion in total assets and cross-jurisdictional activity of approximately $25 billion. See also Part II – Item 7 – Current Regulatory and Other Developments for discussion of regulatory proposals that could, among other things, require the Company to include AOCI in its regulatory capital calculations.

We are subject to litigation and regulatory investigations and proceedings and may not be successful in defending against claims or proceedings.

The financial services industry faces significant litigation and regulatory risks. We are subject to claims and lawsuits in the ordinary course of business, including arbitrations, class actions and other litigation, some of which include claims for substantial or unspecified damages. We are also the subject of inquiries, investigations, and proceedings by regulatory and other governmental agencies.

Litigation and arbitration claims include those brought by our clients and the clients of third-party advisors whose assets are custodied with us. Claims from clients of third-party advisors may allege losses due to investment decisions made by the third-party advisors or the advisors’ misconduct. Litigation claims also include claims from third parties alleging infringement of their intellectual property rights (e.g., patents). Such litigation can require the expenditure of significant company resources. If we were found to have infringed on a third-party patent, or other intellectual property rights, we could incur substantial damages, and in some circumstances could be enjoined from using certain technology, or providing certain products or services.

Actions brought against us may result in settlements, awards, injunctions, fines, penalties or other results adverse to us, including reputational harm. Even if we are successful in defending against these actions, the defense of such matters may result in us incurring significant expenses. We may also determine that it is in the Company’s best interests to settle a matter, such as to avoid protracted litigation, even though the Company may have strong defenses. A substantial judgment, settlement, fine, or penalty could be material to our operating results or cash flows for a particular future period, depending on our results for that period. In market downturns and periods of heightened volatility, the volume of legal claims and amount of damages sought in litigation and regulatory proceedings against financial services companies have historically increased.

Operational Risk

Security breaches of our systems, or those of our clients or third parties, may subject us to significant liability and damage our reputation.

Our business involves the secure processing, storage, and transmission of confidential information about our clients and us. Information security risks for financial institutions are increasing, in part because of the use of the internet and mobile and cloud technologies to conduct financial transactions, and the increased sophistication and activities, including the use of artificial intelligence technologies, of organized crime, activists, hackers and other external parties, including foreign state actors. Our systems and those of other financial institutions, as well as those of our third-party service providers, have been and will continue to be the target of cyber attacks, malicious code, computer viruses, ransomware, and denial of service attacks that could
- 16 -


THE CHARLES SCHWAB CORPORATION

result in unauthorized access, misuse, loss or destruction of data (including confidential client information), account takeovers, unavailability of service or other events. Despite our efforts to ensure the integrity of our systems, we may not be able to anticipate or to implement effective preventive measures against all security breaches of these types, especially because the techniques used change frequently or are not recognized until launched, and because security attacks can originate from a wide variety of sources. Data security breaches may also result from non-technical means, for example, employee misconduct.

Given the high volume of transactions that we process, the large number of clients, counterparties and third-party service providers with which we do business, including cloud service providers, and the increasing sophistication of cyber attacks, a cyber attack could occur and persist for an extended period of time before being detected. The extent of a particular cyber attack and the steps we may need to take to investigate the attack may not be immediately clear, and it may take a significant amount of time before an investigation is completed and full and reliable information about the attack is known. During such time we would not necessarily know the extent of the harm or how best to remediate it, and certain errors or actions could be repeated or compounded before they are discovered and remediated, all or any of which would further increase the costs and consequences of a cyber attack.

Security breaches, including breaches of our security measures or those of our third-party service providers or clients, could result in a violation of applicable privacy and other laws and could subject us to significant liability or loss that may not be covered by insurance, actions by our regulators, damage to our reputation, or a loss of confidence in our security measures which could harm our business. We may be required to expend significant additional resources to modify our protective measures or to investigate and remediate vulnerabilities or other exposures. We may also be required to pay ransom to threat actors to restore or prevent dissemination of data.

We also face risk related to external fraud involving the misappropriation and use of clients’ user names, passwords or other personal information to gain access to our clients’ financial accounts. This could occur from the compromise of clients’ personal electronic devices or as a result of a data security breach at an unrelated company where clients’ personal information is taken and then made available to fraudsters. Additionally, data exposure can result from a failure to adequately destroy data during system or asset decommissioning, which might result in client or Company information being made available to external parties in error. Such risks have grown in recent years due to the increased sophistication and activities of organized crime and other external parties, including foreign state-sponsored parties. Losses reimbursed to clients under our guarantee against unauthorized account activity could have a negative impact on our business, financial condition and results of operations.

Technology and operational failures or errors and other operational risks could subject us to losses, litigation, regulatory actions, and reputational damage.

We must process, record and monitor a large number of transactions and our operations are highly dependent on the integrity of our technology systems and our ability to make timely enhancements and additions to our systems. System interruptions, errors or downtime can result from a variety of causes, including changes in client use patterns, technological failure, changes to our systems, linkages with third-party systems and power failures and can have a significant impact on our business and operations. Our systems are vulnerable to disruptions from human error, execution errors, errors in models such as those used for asset management, capital planning and management, risk management, stress testing and compliance, employee misconduct, unauthorized trading, external fraud, computer viruses, distributed denial of service attacks, cyber attacks, terrorist attacks, natural disaster, extreme weather, power outage, capacity constraints, software flaws, events impacting key business partners and vendors, and similar events. For example, we and other financial institutions have been the target of various denial of service attacks that have, in certain circumstances, made websites, mobile applications and email unavailable for periods of time. Cloud technologies are critical to the operation of our systems and platforms and our reliance on cloud technologies is growing. Cloud service disruptions may lead to delays in accessing data that is important to our businesses and may hinder our clients’ access to our platforms. It could take an extended period of time to restore full functionality to our technology or other operating systems in the event of an unforeseen occurrence, which could affect our ability to process and settle client transactions. Despite our efforts to identify areas of risk, oversee operational areas involving risk, and implement policies and procedures designed to manage these risks, there can be no assurance that we will not suffer unexpected losses, reputational damage or regulatory action due to technology or other operational failures or errors, including those of our vendors or other third parties.

While we devote substantial attention and resources to the reliability, capacity and scalability of our systems, we occasionally experience extraordinary trading volumes, which have caused and could cause our computer systems to operate at unacceptably slow speeds or even fail, affecting our ability to process client transactions and potentially resulting in some clients’ orders being executed at prices they did not anticipate. Disruptions in service and slower system response times could result in substantial losses, decreased client satisfaction, reputational damage, and regulatory inquiries. We are also dependent on the integrity and performance of securities exchanges, clearing houses, market makers, dealers, and other intermediaries to which client orders are
- 17 -


THE CHARLES SCHWAB CORPORATION

routed for execution and settlement. System failures and constraints and transaction errors at such intermediaries could result in delays and erroneous or unanticipated execution prices and cancelled orders, cause substantial losses for us and for our clients, and subject us to claims from our clients for damages, and cause reputational harm.

Certain events could increase our client service and processing times due to staffing shortages, remote work or the temporary loss of services from outsourced service providers, such as occurred during the COVID-19 pandemic. We consider service quality to be an important part of the client experience and our failure to meet client expectations could result in decreased client satisfaction.

We take steps to prevent and detect fraud but the ways that fraudulent activity is attempted is continuously evolving. Although we monitor for new types of fraud, there may be a delay in recognizing the fraud is happening. Besides potential losses, shutting down fraudulent activity often requires a balance with client experience. Instances of fraud might negatively impact our reputation and client confidence in the Company, in addition to any direct losses that might result from such instances.

Our investment management operations may subject us to fiduciary or other legal liability for client losses.

Fund and trust management and administration are complex activities and include functions such as recordkeeping and accounting, security pricing, corporate actions, compliance with investment restrictions, daily net asset value computations, account reconciliations, and required distributions to fund shareholders. Failure to properly perform operational tasks, or the misrepresentation of our services and products could subject us to regulatory sanctions, penalties, or litigation, and result in reputational damage, liability to clients, and the termination of investment management or administration agreements, and the withdrawal of assets under our management.

In the management and administration of funds and client accounts, we use quantitative models and other tools and resources to support investment decisions and processes, including those related to risk assessment, portfolio management, trading and hedging activities and product valuations. Errors in the design, function, or underlying assumptions used in these models and tools, particularly if we fail to detect the errors over an extended period, could subject us to claims of a breach of fiduciary duty and potentially large liabilities for make-whole payments, litigation, and/or regulatory fines.

We rely on outsourced service providers to perform key functions.

We rely on external service providers to perform certain key technology, cloud infrastructure, processing, servicing, and support functions. These service providers face technology, operating, business, and economic risks, and any significant failures by them, including the improper use or disclosure of our confidential client, employee, or company information, could cause us to incur losses and could harm our reputation. An interruption in or the cessation of service by any external service provider as a result of systems failures, capacity constraints, financial difficulties, natural disasters, extreme weather, power outage, public health crises, political developments, war, international disputes, or for any other reason, and our inability to make alternative arrangements in a timely manner could disrupt our operations, impact our ability to offer certain products and services, and result in financial losses to us. We temporarily lost the services from some of our outsourced service providers during the COVID-19 pandemic which contributed to increased client service response and processing times. Following Russia’s invasion of Ukraine, we had to replace certain vendor resources which added incremental complexity in earlier phases of our TD Ameritrade conversion work. Switching to an alternative service provider may require a transition period and result in less efficient operations.

We rely on financial intermediaries to execute and settle client orders and transactions with financial intermediaries are a significant source of revenue.

We rely on market makers, dealers, securities exchanges, clearing houses, and other financial intermediaries to execute and settle our clients’ orders. In addition, payments received from market makers and exchanges in connection with the execution of client equity and options trades, and from dealers and other counterparties in connection with securities lending, account for significant revenue. The unwillingness or inability of any of these parties to perform their usual functions coupled with the unavailability of alternative arrangements could result in our clients’ orders not getting executed or settled. This may be due to market volatility, uneconomic trading conditions, capacity constraints, financial constraints, system failures, unanticipated trading halts invoked by securities exchanges, market closures, or other reasons. Our inability to get client orders executed or settled because of the unwillingness or inability of these parties to perform their usual functions could result in client dissatisfaction and reputational harm and expose us to client claims for damages.
- 18 -


THE CHARLES SCHWAB CORPORATION

Credit Risk

We may suffer significant losses from our credit exposures.

Our businesses are subject to the risk that a client, counterparty or issuer will fail to perform its contractual obligations, or that the value of collateral held to secure obligations will prove to be inadequate. While we have policies and procedures designed to manage this risk, the policies and procedures may not be fully effective. Our exposure mainly results from margin lending, clients’ options and futures trading, securities lending, mortgage lending, pledged asset lending, our role as a counterparty in financial contracts and investing activities, and indirectly from the investing activities of certain of the proprietary funds that the Company sponsors.

When clients purchase securities on margin, borrow on lines of credit collateralized by securities, or trade options or futures, we are subject to the risk that clients may default on their obligations when the value of the securities and cash in their accounts falls below the amount of clients’ indebtedness. Our margin, options and futures business has materially increased as a result of our TD Ameritrade acquisition, and market liquidity represents an increased risk. Abrupt changes in securities valuations and the failure of clients to meet margin calls could result in substantial losses, especially if there is a lack of liquidity.

We have exposure to credit risk associated with our investments. Those investments are subject to price fluctuations. Loss of value of securities can negatively affect earnings if management determines that such loss of value has resulted from a credit loss. The evaluation of whether a credit loss exists is a matter of judgment, which includes the assessment of multiple factors. If management determines that a security’s decline in fair value is the result of a credit loss, an allowance for credit losses on the security will be recorded and a corresponding loss will be recognized in current earnings. Even if a decline in fair value of a security is not determined to have resulted from a credit loss, if we were ever forced to sell the security sooner than intended prior to maturity due to liquidity needs, we would have to recognize any unrealized losses at that time.

Our bank loans primarily consist of First Mortgages, PALs, and HELOCs. Increases in delinquency and default rates, housing and stock price declines, increases in the unemployment rate, and other economic factors, can result in increases in allowances for credit losses and related credit loss expense, as well as write downs on such loans.

Heightened credit exposures to specific counterparties or instruments can increase our risk of loss. Examples include:

Large positions in financial instruments collateralized by assets with similar economic characteristics or in securities of a single issuer or industry;
Mortgage loans and HELOCs to banking clients which are secured by properties in the same geographic region; and
Client margins, options or futures, pledged assets, and securities lending activities collateralized by or linked to securities of a single issuer, index, or industry.

The Company sponsors a number of proprietary money market mutual funds and other proprietary funds. Although the Company has no obligation to do so, the Company may decide for competitive or other reasons to provide credit, liquidity or other support to our funds in the event of significant declines in valuation of fund holdings or significant redemption activity that exceeds available liquidity. Such support could cause the Company to take significant charges, could reduce the Company’s liquidity and, in certain situations, could, with respect to proprietary funds other than money market mutual funds, result in the Company having to consolidate one or more funds in its financial statements. If the Company were to choose not to provide credit, liquidity or other support in such a situation, the Company could suffer reputational damage and its business could be adversely affected.

Risks Related to Our TD Ameritrade Integration

We are working to complete one of the largest brokerage account conversions and could experience unanticipated issues.

As part of our integration of TD Ameritrade, the Company expects to complete the remaining client transitions from TD Ameritrade to Schwab in a final transition group in May of 2024. This final transition group includes our most active trader accounts which drive significant revenue for TD Ameritrade and are, therefore, important to the revenue of the combined company. Although we have undertaken extensive planning and testing, the account transitions are complicated and we could experience issues which cause the final transition group or the remaining integration work to be delayed, or negatively impact the client experience. Such issues could adversely impact client retention, integration-related costs, the timing for realizing synergies including those dependent on the wind-down of the operations of the TD Ameritrade broker-dealers, our reputation, and compliance with regulatory requirements.
- 19 -


THE CHARLES SCHWAB CORPORATION

We have experienced unanticipated issues earlier in the integration process that added complexity to our conversion work, including a need to increase capacity of our systems earlier in the integration process beyond our original technology build-out plan and other complexities of technology development. Though technology development to support the remaining client account transitions is now substantially complete, unanticipated issues could arise, including in relation to the wind-down of certain technology used by our broker-dealer subsidiaries.

In connection with the completed 2023 transitions, the Company experienced attrition in client assets from former TD Ameritrade retail accounts and RIAs that was within our initial estimates when we announced the acquisition. It is possible that the remaining integration process could result in the loss of clients, including to a greater degree than previously planned or experienced in relation to the 2023 client account conversions.

We expect to continue to incur significant costs in 2024 to finish combining the operations of Schwab and TD Ameritrade, including workforce, technology-related, and facilities consolidation costs. Additional unanticipated costs may be incurred in the integration process. If we are not able to successfully transition the remaining client accounts, and complete planned technology wind-down activities, within the anticipated time frames, the anticipated cost savings and other benefits of the merger may not be realized fully or may take longer to realize than expected.

Other Business Risks

Potential strategic transactions could have a negative impact on our financial position.

We evaluate potential strategic transactions, including business combinations, acquisitions, and dispositions. Any such transaction could have a material impact on our financial position, results of operations, or cash flows. The process of evaluating, negotiating, effecting, and integrating any such strategic transaction may divert management’s attention from other business concerns, and might cause the loss of key clients, employees, and business partners. Moreover, integrating businesses and systems may result in unforeseen expenditures as well as numerous risks and uncertainties, including the need to integrate operational, financial, and management information systems and management controls, integrate relationships with clients and business partners, and manage facilities and employees in different geographic areas. The integration process could result in the disruption of ongoing businesses or changes to inconsistent standards, controls, procedures and policies that could adversely affect our ability to maintain relationships with clients, employees, outsourced service providers and vendors. In addition, an acquisition may cause us to assume liabilities or become subject to litigation or regulatory proceedings or require the amortization of a large amount of acquired intangible assets. Further, we may not realize the anticipated benefits from an acquisition (including without limitation the acquisition of TD Ameritrade) in a timely manner or at all, and any future acquisition could be dilutive to our current stockholders’ percentage ownership or to earnings per common share (EPS).

Our acquisitions and dispositions are typically subject to closing conditions, including regulatory approvals and the absence of material adverse changes in the business, operations or financial condition of the entity or part of an entity being acquired or sold. To the extent we enter into an agreement to buy or sell an entity or part of an entity, there can be no guarantee that the transaction will close when expected, or at all. If a material transaction does not close, our stock price could decline.

Our industry is highly competitive and characterized by aggressive price competition.

We operate in a highly competitive environment with a broad array of competitors from large integrated banks to venture-capital backed private companies. We continually monitor our pricing in relation to competitors and periodically adjust interest rates on deposits and loans, fees for advisory services, expense ratios on mutual funds and ETFs, trade commission rates, and other pricing and incentives to sustain our competitive position. Increased price competition from other financial services firms to attract clients, such as reduced commissions, higher deposit rates, reduced mutual fund or ETF expense ratios, or the increased use of incentives, could impact our results of operations and financial condition.

We face competition in hiring and retaining qualified employees.

The market for qualified personnel in our business is highly competitive. At various times, different functions and roles are in especially high demand in the market, compelling us to pay more to attract talent. Our ability to continue to compete effectively will depend upon our ability to attract new employees and retain existing employees while managing compensation costs.

- 20 -


THE CHARLES SCHWAB CORPORATION

Our stock price has fluctuated historically, and may continue to fluctuate.

Our stock price can be volatile. Among the factors that may affect the volatility of our stock price are the following:

Speculation in the investment community or the press about, or actual changes in, our competitive position, organizational structure, executive team, operations, financial condition, financial reporting and results, expense discipline, strategic transactions, the expected benefits from our TD Ameritrade acquisition, or ratings from third parties;
The announcement of new products, services, acquisitions, or dispositions by us or our competitors;
Increases or decreases in revenue or earnings, changes in earnings estimates by the investment community, and variations between estimated financial results and actual financial results;
Business metrics, such as client cash and net new client assets; and
Sales of a substantial number of shares of our common stock by large stockholders.

Changes in the stock market generally, or as it concerns our industry, as well as geopolitical, corporate, regulatory, business, and economic factors may also affect our stock price.

Future sales of CSC’s equity securities may adversely affect the market price of CSC’s common stock and result in dilution.

CSC’s certificate of incorporation authorizes CSC’s Board of Directors, among other things, to issue additional shares of common or preferred stock or securities convertible or exchangeable into equity securities, without stockholder approval. CSC may issue additional equity or convertible securities to raise additional capital or for other purposes. The issuance of any additional equity or convertible securities could be substantially dilutive to holders of CSC’s common stock and may adversely affect the market price of CSC’s common stock.

Our ongoing relationships with The Toronto-Dominion Bank and its affiliates could have a negative impact on us.

Although our acquisition of TD Ameritrade was structured such that completion of the merger would not result in CSC either (i) being deemed to be “controlled” (as that term is interpreted by the Federal Reserve under the BHC Act or HOLA) by The Toronto-Dominion Bank (TD Bank) or (ii) being deemed to be in “control” of any of TD Bank’s depository institutions, changes in circumstances could trigger presumptions of control under the Federal Reserve’s regulations. This could occur if TD Bank and its affiliates own more than 9.9% of Schwab common stock, as interpreted in accordance with the applicable rules of the Federal Reserve. While the Stockholder Agreement between CSC and TD Bank prohibits TD Bank and its affiliates from exceeding the 9.9% threshold, it could happen unintentionally. This presumption of control could also be triggered if the revenue generated to either us or to any of the TD Bank depository institutions exceeds a certain percentage. The Stockholder Agreement contains provisions to address such situations.

Item 1B.     Unresolved Staff Comments

None.

Item 1C.     Cybersecurity

Information security, including cybersecurity, is the risk of unauthorized access, use, disclosure, disruption, modification, recording or destruction of the firm’s information or systems. As a large company in the financial services industry, we do business with a large number of clients, counterparties, and third-party service providers, and the nature of Schwab’s business involves the secure processing, storage, and transmission of confidential information about our clients and us. We process, record, and monitor a high volume of transactions, and our operations are highly dependent on the integrity of our technology systems. As a result, we face extensive cybersecurity risks. It is through a combination of specialized internal and external teams, coupled with security software tools, that Schwab identifies, assesses, and manages material cybersecurity risk, and implements and enhances over time our cybersecurity policies, procedures, and strategies to reduce risk. We also maintain processes and procedures for identifying and investigating cybersecurity threats and remediation should an incident occur. Though the impact of prior cybersecurity events experienced by the Company has not been material to the Company’s strategy, results of operations, or financial condition, we continue to face increasing cybersecurity risks.

- 21 -


THE CHARLES SCHWAB CORPORATION

CSC’s Board of Directors oversees management’s processes for risk management, and the Risk Committee of the Board of Directors assists the Board in fulfilling its oversight responsibilities with respect to managing risks, including cybersecurity risks. Integrated within the Company’s overall enterprise risk management program, Schwab has an established information security program that knits together complementary tools, controls, and technologies to protect systems, client accounts and data. We continuously monitor the systems and work collaboratively with government agencies, law enforcement, and other financial institutions to address potential threats. We deploy advanced monitoring systems to identify suspicious activity and deter unauthorized access by internal or external actors. We also maintain policies, standards, and procedures, which apply to employees, contractors, and third parties, regarding the standard of care expected with all data, whether the data is internal company information, employee information, or non-public client information. This includes limiting the number of employees who have access to clients’ personal information and internal authentication measures enforced to protect against the unauthorized use of employee credentials. All employees who handle sensitive information are trained in privacy and security. Schwab also engages with external firms specializing in discrete areas of cybersecurity to assess the Company’s practices, vulnerabilities, and overall cyber risk posture.

Schwab’s corporate cybersecurity program is led by our Chief Information Security Officer (CISO), who reports to our Chief Information Officer (CIO). The current CISO has been in his role for several years, and is responsible for our overall cybersecurity strategy, security engineering, security operations, cyber threat detection and incident response, and technology risk and compliance. Our CISO has extensive experience assessing and managing cybersecurity risk, and is supported by a cybersecurity organization comprised of hundreds of professionals, many of whom hold various certifications such as Certified Information Systems Security Professional, Certified Information Security Manager, and Certified in Risk and Information System Control. Our CISO and CIO attend meetings of and present to the Risk Committee of CSC’s Board of Directors on our prevention, detection, mitigation, and remediation efforts of our cybersecurity program. We also have an escalation process in place to inform senior management and the Board of Directors of material cybersecurity incidents in a timely manner.

See Item 1A. Risk Factors for additional information on cybersecurity risk. See also Part II – Item 7 – Risk Management for additional information on the Company’s Enterprise Risk Management Framework, including further discussion of the Company’s risk governance and the management of related risks.

Item 2.     Properties

As part of our real estate energy management program, Schwab incorporates sustainable practices and procedures to guide our facilities’ design, materials, and building technologies. A summary of Schwab’s significant locations is presented in the following table.
December 31, 2023Square Footage
(amounts in thousands)LeasedOwned
Location
Corporate headquarters:
Westlake, TX22 795 
Service and other office space:
Phoenix, AZ67 728 
Denver, CO— 767 
Omaha, NE— 578 
Austin, TX— 561 
San Francisco, CA417 — 
Southlake, TX13 375 
St. Louis, MO— 375 
Chicago, IL223 — 
Jersey City, NJ208 — 
Indianapolis, IN— 161 
Orlando, FL159 — 
Richfield, OH— 117 
El Paso, TX— 105 

The square footage amounts presented in the table above are net of space that has been subleased to third parties. Our corporate headquarters, data centers, offices, and service centers support both of our segments.
- 22 -


THE CHARLES SCHWAB CORPORATION

During 2023, the Company continued its integration of TD Ameritrade and engaged in certain other cost reduction efforts, including to decrease its real estate footprint. As part of these actions, the Company’s use of certain of the above locations was decreased in 2023, including Jersey City, NJ and San Francisco, CA, and certain additional reductions in the Company’s real estate footprint are expected in 2024. See Part II – Item 8 – Notes 7, 13, and 15 for additional information.

As of December 31, 2023, the Company had more than 380 domestic branch offices in 48 states and the District of Columbia, as well as locations in Puerto Rico, the United Kingdom, Hong Kong, and Singapore. Substantially all branch offices are located in leased premises.

Item 3.     Legal Proceedings

For a discussion of legal proceedings, see Part II – Item 8 – Note 14.

Item 4.     Mine Safety Disclosures

Not applicable.


- 23 -


THE CHARLES SCHWAB CORPORATION

PART II


Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities

Market Information

CSC’s common stock is listed on The New York Stock Exchange under the ticker symbol SCHW. The number of common stockholders of record as of January 31, 2024, was 5,045. The closing market price per share on that date was $62.92.

The following graph shows a five-year comparison of cumulative total returns for CSC’s common stock, the Standard & Poor’s® 500 Index, and the Dow Jones U.S. Investment Services Index, each of which assumes an initial investment of $100 and reinvestment of dividends.

Graph to Insert Item 5.jpg

December 31,201820192020202120222023
The Charles Schwab Corporation$100 $116 $132 $212 $212 $178 
Standard & Poor’s 500 Index$100 $131 $156 $200 $164 $207 
Dow Jones U.S. Investment Services Index$100 $124 $147 $206 $185 $209 

Securities Authorized for Issuance Under Equity Compensation Plans

For information relating to compensation plans under which our equity securities are authorized for issuance, see Item 8 – Note 21 and Part III – Item 12.

Issuer Purchases of Equity Securities

On July 27, 2022, CSC publicly announced that its Board of Directors terminated its prior repurchase authorization and replaced it with a new authorization to repurchase up to $15.0 billion of common stock. The authorization does not have an expiration date. See also Item 8 – Note 19.
- 24 -


THE CHARLES SCHWAB CORPORATION

The following table summarizes purchases made by or on behalf of CSC of its common stock for each calendar month in the fourth quarter of 2023 (in millions, except number of shares, which are in thousands, and per share amounts):
MonthTotal Number of Shares PurchasedAverage
Price Paid
per Share
Total Number of Shares Purchased as Part of Publicly Announced ProgramApproximate Dollar Value of Shares That May Yet Be Purchased Under the Publicly Announced Program
October:
Share repurchase program
— $— — $8,723 
Employee transactions (1)
94 $53.78 N/AN/A
November:
Share repurchase program
— $— — $8,723 
Employee transactions (1)
318 $53.20 N/AN/A
December:
Share repurchase program
— $— — $8,723 
Employee transactions (1)
$63.61 N/AN/A
Total:
Share repurchase program
— $— — $8,723 
Employee transactions (1)
414 $53.37 N/AN/A
(1) Includes restricted shares withheld (under the terms of grants under employee stock incentive plans) to offset tax withholding obligations that occur upon vesting and release of restricted shares. CSC may receive shares delivered or attested to pay the exercise price and/or to satisfy tax withholding obligations by employees who exercise stock options granted under employee stock incentive plans, which are commonly referred to as stock swap exercises.
N/A Not applicable.

Item 6.     Reserved


- 25 -


THE CHARLES SCHWAB CORPORATION
Management’s Discussion and Analysis of Financial Condition and Results of Operations
(Tabular Amounts in Millions, Except Ratios, or as Noted)

Item 7.    Management’s Discussion and Analysis of Financial Condition and Results of Operations


FORWARD-LOOKING STATEMENTS

In addition to historical information, this Annual Report on Form 10-K contains “forward-looking statements” within the meaning of Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are identified by words such as “believe,” “anticipate,” “expect,” “intend,” “plan,” “will,” “may,” “estimate,” “appear,” “could,” “would,” “expand,” “aim,” “maintain,” “continue,” “seek,” and other similar expressions. In addition, any statements that refer to expectations, projections, or other characterizations of future events or circumstances are forward-looking statements.

These forward-looking statements, which reflect management’s beliefs, objectives, and expectations as of the date hereof, are estimates based on the best judgment of Schwab’s senior management. These statements relate to, among other things:

Maximizing our market valuation and stockholder returns over time; our belief that developing trusted relationships will translate into more client assets which drives revenue and, along with expense discipline and thoughtful capital management, generates earnings growth and builds stockholder value; and maintaining our competitive position (see Business Strategy and Competitive Environment, and Products and Services in Part I – Item 1);
The impact from adjustments related to the Market Risk Rule (see Regulation in Part I – Item 1);
Expected benefits from the TD Ameritrade acquisition; expected timing for the TD Ameritrade client transitions; deal-related asset attrition; and cost estimates and timing, including acquisition and integration-related costs, capital expenditures, cost synergies, and exit and other related costs (see Business Acquisition in Part I – Item 1; Overview –Integration of TD Ameritrade in Part II – Item 7; and Exit and Other Related Liabilities in Part II – Item 8 – Note 15);
Actions to streamline our operations and our expectation of incremental run-rate cost savings and the timing and amount of associated exit and related costs (see Overview – Other in Part II – Item 7; and Exit and Other Related Liabilities in Part II – Item 8 – Note 15);
The outcome and impact of legal proceedings and regulatory matters (see Legal Proceedings in Part I – Item 3; and Commitments and Contingencies in Part II – Item 8 – Note 14);
Anticipated expenses and investments to support business growth and growth in our client base (see Overview and Results of Operations – Total Expenses Excluding Interest in Part II – Item 7);
The expected impact of proposed and final rules (see Regulation in Part I – Item 1; and Current Regulatory and Other Developments in Part II – Item 7);
Net interest revenue; the adjustment of rates paid on client-related liabilities; and outstanding balances and the use of supplemental funding (see Results of Operations – Net Interest Revenue in Part II – Item 7);
Capital expenditures (see Results of Operations – Total Expenses Excluding Interest in Part II – Item 7);
Impact from the phase-out of LIBOR (see Risk Management – Phase-out of LIBOR in Part II – Item 7);
Management of interest rate risk; the impact of changes in interest rates on net interest margin and revenue, bank deposit account fee revenue, economic value of equity, and liability and asset duration (see Risk Management in Part II – Item 7);
Sources and uses of liquidity and capital; and Tier 1 Leverage Ratio operating objective (see Liquidity Risk, Capital Management, Regulatory Capital Requirements, and Dividends in Part II – Item 7);
Capital management; the return of capital to stockholders; the migration of IDA balances to our balance sheet; expectations about capital requirements, including AOCI, and meeting those requirements; and plans regarding capital and dividends (see Capital Management – Regulatory Capital Requirements in Part II – Item 7; and Commitments and Contingencies in Part II – Item 8 – Note 14);
The expected impact of new accounting standards not yet adopted (see Summary of Significant Accounting Policies in Part II – Item 8 – Note 2); and
The likelihood of indemnification and guarantee payment obligations and clients failing to fulfill contractual obligations (see Commitments and Contingencies in Part II – Item 8 – Note 14 and Financial Instruments Subject to Off-Balance Sheet Credit Risk – Client Trade Settlement in Note 17).

Achievement of the expressed beliefs, objectives and expectations described in these statements is subject to certain risks and uncertainties that could cause actual results to differ materially from the expressed beliefs, objectives, and expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this Annual Report on Form 10-K or, in the case of documents incorporated by reference, as of the date of those documents.
- 26 -


THE CHARLES SCHWAB CORPORATION
Management’s Discussion and Analysis of Financial Condition and Results of Operations
(Tabular Amounts in Millions, Except Ratios, or as Noted)

Important factors that may cause actual results to differ include, but are not limited to:
General market conditions, including the level of interest rates and equity market valuations;
Our ability to attract and retain clients, develop trusted relationships, and grow client assets;
Client use of our advisory and lending solutions and other products and services;
The level of client assets, including cash balances;
Client sensitivity to deposit rates;
Competitive pressure on pricing, including deposit rates;
The level and mix of client trading activity, including daily average trades, margin balances, and balance sheet cash;
Regulatory guidance and adverse impacts from new or changed legislation, rulemaking or regulatory expectations;
Capital and liquidity needs and management;
Our ability to manage expenses;
Our ability to attract and retain talent;
Our ability to develop and launch new and enhanced products, services, and capabilities, as well as enhance our infrastructure, in a timely and successful manner;
Our ability to monetize client assets;
Our ability to support client activity levels;
The risk that expected cost synergies and other benefits from the TD Ameritrade acquisition may not be fully realized or may take longer to realize than expected and that integration-related expenses may be higher than expected;
Increased compensation and other costs due to inflationary pressures;
The ability to successfully implement integration strategies and plans relating to TD Ameritrade, including client account transitions;
The timing and scope of integration-related and other technology projects;
Real estate and workforce decisions;
Client cash allocations;
Migrations of bank deposit account balances (BDA balances);
Balance sheet positioning relative to changes in interest rates;
Interest earning asset mix and growth;
Our ability to access and use supplemental funding sources;
Prepayment levels for mortgage-backed securities;
Adverse developments in litigation or regulatory matters and any related charges; and
Potential breaches of contractual terms for which we have indemnification and guarantee obligations.

Certain of these factors, as well as general risk factors affecting the Company, are discussed in greater detail in Risk Factors in Part I – Item 1A.

GLOSSARY OF TERMS

Active brokerage accounts: Brokerage accounts with activity within the preceding 270 days.

Accumulated Other Comprehensive Income (AOCI): A component of stockholders’ equity which primarily includes unrealized gains and losses on AFS securities and securities transferred from the AFS category to the held to maturity (HTM) category.

Asset-backed securities: Debt securities backed by financial assets such as loans or receivables.

Assets receiving ongoing advisory services: Market value of all client assets custodied at the Company under the guidance of an independent advisor or enrolled in one of Schwab’s advice solutions at the end of the reporting period.

Bank deposit account balances (BDA balances): Clients’ uninvested cash balances held off-balance sheet in deposit accounts at unconsolidated third-party financial institutions, pursuant to the IDA agreement and agreements formerly in effect with other third-party financial institutions. Average BDA balances represent the daily average balance for the reporting period.

Basel III: Global regulatory standards on bank capital adequacy and liquidity issued by the Basel Committee on Banking Supervision.

Basis point: One basis point equals 1/100th of 1%, or 0.01%.
- 27 -


THE CHARLES SCHWAB CORPORATION
Management’s Discussion and Analysis of Financial Condition and Results of Operations
(Tabular Amounts in Millions, Except Ratios, or as Noted)

Client assets: The market value, as of the end of the reporting period, of all client assets in our custody, BDA balances, and proprietary products, which includes both cash and securities. Average client assets are the daily average client asset balance for the reporting period.

Client cash as a percentage of client assets: Calculated as the value, at the end of the reporting period, of all money market fund balances, bank deposits excluding brokered CDs issued by CSB, Schwab One® balances, BDA balances, and certain cash equivalents divided by client assets.

Common Equity Tier 1 (CET1) Capital: The sum of common stock and related surplus net of treasury stock, retained earnings, AOCI, and qualifying minority interests, less applicable regulatory adjustments and deductions. As a Category III banking organization, CSC has elected to exclude AOCI from CET1 Capital.

Common Equity Tier 1 Risk-Based Capital Ratio: The ratio of CET1 Capital to total risk-weighted assets as of the end of the period.

Core net new client assets: Net new client assets before significant one-time inflows or outflows, such as acquisitions/divestitures or extraordinary flows (generally greater than $10 billion) relating to a specific client, and activity from off-platform brokered CDs issued by CSB. These flows may span multiple reporting periods. 

Customer Protection Rule: Refers to Rule 15c3-3 of the Securities Exchange Act of 1934.

Daily Average Trades (DATs): Includes daily average revenue trades by clients, trades by clients in asset-based pricing relationships, and all commission-free trades.

Delinquency roll rates: The rates at which loans transition through delinquency stages, ultimately resulting in a loss. Schwab considers a loan to be delinquent if it is 30 days or more past due.

Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act): Regulatory reform legislation containing numerous provisions which expanded prudential regulation of large financial services companies.

Duration: Duration is typically used to measure the expected change in value of a financial instrument for a 1% change in interest rates, expressed in years.
 
First Mortgages: Refers to first lien residential real estate mortgage loans.

Full-time equivalent employees: Represents the total number of hours worked divided by a 40-hour work week for the following categories: full-time, part-time, and temporary employees and persons employed on a contract basis.

High Quality Liquid Assets (HQLA): HQLA is defined by the Federal Reserve, but includes assets that are actively traded and readily convertible to cash in times of stress.

Interest-bearing liabilities: Primarily includes bank deposits, payables to brokerage clients, Federal Home Loan Bank borrowings, other short-term borrowings, and long-term debt on which Schwab pays interest.

Interest-earning assets: Primarily includes cash and cash equivalents, cash and investments segregated, receivables from brokerage clients, investment securities, and bank loans on which Schwab earns interest.

Investment grade: Defined as a rating equivalent to a Moody’s Investors Service (Moody’s) rating of “Baa3” or higher, or a Standard & Poor’s Rating Group (Standard & Poor’s) or Fitch Ratings, Ltd (Fitch) rating of “BBB-” or higher.

Liquidity Coverage Ratio (LCR): The ratio of HQLA to projected net cash outflows during a 30-day stress scenario.

Loan-To-Value (LTV) ratio: Calculated as the principal amount of a loan divided by the value of the collateral securing the loan.

- 28 -


THE CHARLES SCHWAB CORPORATION
Management’s Discussion and Analysis of Financial Condition and Results of Operations
(Tabular Amounts in Millions, Except Ratios, or as Noted)

Margin loans: Money borrowed against the value of certain stocks, bonds, and mutual funds in a client portfolio. The borrowed money can be used to purchase additional securities or to meet short-term financial needs.

Master netting arrangement: An agreement between two counterparties that have multiple contracts with each other that provides for net settlement of all contracts through a single cash payment in the event of default or termination of any one contract.

Mortgage-backed securities: A type of asset-backed security that is secured by a mortgage or group of mortgages.

Net interest margin: Net interest revenue (annualized for interim periods) divided by average interest-earning assets.

Net new client assets: Total inflows of client cash and securities to Schwab less client outflows. Inflows include dividends and interest; outflows include commissions and fees. Capital gains distributions are excluded.

Net Stable Funding Ratio (NSFR): The ratio of the amount of available stable funding relative to the amount of required stable funding.

New brokerage accounts: All brokerage accounts opened during the period, as well as any accounts added via acquisition.

Nonperforming assets: The total of nonaccrual loans and other real estate owned.

Order flow revenue: Payments received from trade execution venues to which our broker-dealer subsidiaries send equity and option orders.

Pledged Asset Line® (PAL): A non-purpose revolving line of credit from a banking subsidiary secured by eligible assets held in a separate pledged brokerage account maintained at CS&Co.

Return on average common stockholders’ equity: Calculated as net income available to common stockholders (annualized for interim periods) divided by average common stockholders’ equity.

Risk-weighted assets: Computed by assigning specific risk-weightings to assets and off-balance sheet instruments for capital adequacy calculations.

Tier 1 Capital: The sum of CET1 Capital and additional Tier 1 Capital instruments and related surplus, less applicable adjustments and deductions.

Tier 1 Leverage Ratio: End-of-period Tier 1 Capital divided by adjusted average total consolidated assets for the period.

Trading days: Days in which the markets/exchanges are open for the buying and selling of securities. Early market closures are counted as half-days.

U.S. federal banking agencies: Refers to the Federal Reserve, the Office of the Comptroller of the Currency, the FDIC, and the CFPB.

Uniform Net Capital Rule: Refers to Rule 15c3-1 under the Securities Exchange Act of 1934, which specifies minimum capital requirements that are intended to ensure the general financial soundness and liquidity of broker-dealers at all times.
- 29 -


THE CHARLES SCHWAB CORPORATION
Management’s Discussion and Analysis of Financial Condition and Results of Operations
(Tabular Amounts in Millions, Except Ratios, or as Noted)

OVERVIEW

Management focuses on several client activity and financial metrics in evaluating Schwab’s financial position and operating performance. We believe that metrics relating to net new and total client assets, as well as client cash levels and utilization of advisory services, offer perspective on our business momentum and client engagement. Data on new and total client brokerage accounts provides additional perspective on our ability to attract and retain new business. Total net revenue growth, pre-tax profit margin, EPS, return on average common stockholders’ equity, and the Consolidated Tier 1 Leverage Ratio provide broad indicators of Schwab’s overall financial health, operating efficiency, and ability to generate acceptable returns. Total expenses excluding interest as a percentage of average client assets is a measure of operating efficiency.

Results for the years ended December 31, 2023, 2022, and 2021 are as follows:
Percent Change 2022-2023202320222021
Client Metrics
Net new client assets (in billions) (1)
(17)%$337.2 $406.9 $516.2 
Core net new client assets (in billions)(29)%$305.7 $427.7 $558.2 
Client assets (in billions, at year end)21%$8,516.6 $7,049.8 $8,138.0 
Average client assets (in billions)7%$7,793.8 $7,292.8 $7,493.8 
New brokerage accounts (in thousands)
(6)%3,806 4,044 7,306 
Active brokerage accounts (in thousands, at year end)3%34,838 33,758 33,165 
Assets receiving ongoing advisory services (in billions, at year end)18%$4,338.8 $3,673.2 $4,064.4 
Client cash as a percentage of client assets (at year end) (2)
10.5 %12.2 %10.9 %
Company Financial Information and Metrics
Total net revenues(9)%$18,837 $20,762 $18,520 
Total expenses excluding interest10%12,459 11,374 10,807 
Income before taxes on income(32)%6,378 9,388 7,713 
Taxes on income(41)%1,311 2,205 1,858 
Net income(29)%$5,067 $7,183 $5,855 
Preferred stock dividends and other(24)%418 548 495 
Net income available to common stockholders(30)%$4,649 $6,635 $5,360 
Earnings per common share — diluted(27)%$2.54 $3.50 $2.83 
Net revenue growth from prior year(9)%12 %58 %
Pre-tax profit margin33.9 %45.2 %41.6 %
Return on average common stockholders’ equity16 %18 %11 %
Expenses excluding interest as a percentage of average client assets0.16 %0.16 %0.14 %
Consolidated Tier 1 Leverage Ratio (at year end)8.5 %7.2 %6.2 %
Non-GAAP Financial Measures (3)
Adjusted total expenses (4)
$11,029 $10,386 $9,724 
Adjusted diluted EPS$3.13 $3.90 $3.25 
Return on tangible common equity54 %42 %22 %
(1) 2023 includes net inflows of $32.5 billion from off-platform brokered CDs issued by CSB and $12.0 billion from a mutual fund clearing services client and outflows of $13.0 billion from an international relationship. 2022 includes outflows of $20.8 billion from certain mutual fund clearing services clients. 2021 includes outflows of $42.0 billion from certain mutual fund clearing services clients.
(2) Beginning in 2023, client cash as a percentage of client assets excludes brokered CDs issued by CSB. Prior periods have been recast to reflect this change.
(3) Beginning in 2023, adjustments made to GAAP financial measures also include restructuring costs. See Non-GAAP Financial Measures for further details and a reconciliation of such measures to GAAP reported results.
(4) Adjusted total expenses is a non-GAAP financial measure adjusting total expenses excluding interest. See Non-GAAP Financial Measures.

2023 Compared to 2022

Through an uneven environment in 2023, with shifting views on the trajectory of the U.S. economy, persistent geopolitical unrest, and turmoil beginning early in the year within the banking sector, our “no trade-offs” value proposition continued to
- 30 -


THE CHARLES SCHWAB CORPORATION
Management’s Discussion and Analysis of Financial Condition and Results of Operations
(Tabular Amounts in Millions, Except Ratios, or as Noted)

resonate with investors. The Federal Reserve raised the Federal Funds rate four times in the first three quarters of 2023 for a total of 100 basis points before holding rates unchanged since July. Although equity markets were volatile during 2023,
ultimate returns were strong with the S&P 500® rising 24% and the NASDAQ Composite® increasing 43%. Investor sentiment was also volatile throughout 2023; strongly bearish in the first quarter before recovering in the second, then declining again in the third quarter. Investor sentiment recovered significantly in the fourth quarter to end the year with a solid bullish viewpoint.

Despite this mixed sentiment, our clients remained engaged with the markets and with Schwab. Clients entrusted us with $305.7 billion in core net new assets in 2023. Total client assets reached $8.52 trillion as of December 31, 2023, rising 21% from year-end 2022 as a result of asset gathering and market gains, partially offset by some expected deal-related attrition from clients originating at TD Ameritrade. Trading volume declined somewhat from the prior year, as DATs were 5.4 million in 2023, down 9% from 2022. Clients opened 3.8 million new brokerage accounts, bringing active brokerage accounts to 34.8 million at year-end, up 3% year-over-year. Clients sought to take advantage of higher market interest rates in 2023, and we saw significant client cash reallocation from our sweep products into higher-yielding alternatives offered by Schwab. While bank sweep deposits and payables to brokerage clients decreased by a total of $126.1 billion during 2023, client assets invested in Schwab’s proprietary money market funds and fixed income securities increased by a total of $383.8 billion.

Schwab’s financial performance during 2023 reflected the challenges of navigating a market environment shaped by the Federal Reserve’s interest rate tightening policy and the follow-on effects stemming from the regional banking crisis beginning in March. Schwab’s net income totaled $5.1 billion in 2023 and diluted EPS was $2.54, down 29% and 27%, respectively, from the prior year. Adjusted diluted EPS (1) was $3.13 in 2023, down 20% from $3.90 in 2022.

Total net revenues were $18.8 billion in 2023, down 9% from the prior year as client cash realignment activity impacted our net interest revenue. Net interest revenue was $9.4 billion in 2023, down 12% from the prior year, as the benefits of rising rates were more than offset by increased utilization of higher-cost supplemental funding and lower interest-earning assets. Asset management and administration fees totaled $4.8 billion in 2023, rising 13% from 2022, primarily as a result of growth in money market funds, as well as improvement in equity markets and growth in our other proprietary fund products, partially offset by lower balances of certain third-party funds. Trading revenue was $3.2 billion in 2023, down 12% from 2022, due primarily to mix of client trading activity and overall lower trading volume. Bank deposit account fee revenue was $705 million in 2023, down 50% from the prior year due to lower average BDA balances and lower net yields, as well as $97 million in one-time breakage fees related to ending our arrangements with certain third-party banks in the first quarter of 2023. BDA balances totaled $97.5 billion at December 31, 2023, down 23% from year-end 2022 due primarily to client cash allocation decisions.

Total expenses excluding interest were $12.5 billion in 2023, increasing 10% from 2022. This increase was due primarily to restructuring charges incurred in the second half of 2023, higher regulatory fees and assessments due primarily to an increase in FDIC assessments including the recognition of a $172 million special assessment in the fourth quarter, as well as higher expenses for compensation and benefits and depreciation and amortization, due primarily to growth in average headcount and investment in technology to support growth in our client base and the TD Ameritrade integration. Adjusted total expenses (1) were $11.0 billion in 2023, higher by 6% from 2022. Acquisition and integration-related costs were $401 million in 2023, up 2% from 2022, and amortization of acquired intangibles was $534 million, down 10% from 2022 as certain assets from the TD Ameritrade acquisition were fully amortized beginning in the fourth quarter of 2022. Beginning in the third quarter of 2023, adjusted total expenses (1) also excludes restructuring costs, which totaled $495 million in 2023, related to efforts to achieve run-rate cost savings in preparation for post-integration of TD Ameritrade.

Return on average common stockholders’ equity was 16% for 2023, down from 18% in 2022. Return on tangible common equity (1) (ROTCE) was 54% in 2023, up from 42% in 2022. These changes primarily reflected lower average stockholders’ equity and lower net income in 2023. Average stockholders’ equity was lower in 2023 due to a year-over-year decrease in average AOCI driven by unrealized losses on our AFS investment securities portfolio and securities transferred from AFS to HTM in 2022 (see Item 8 – Note 5).

Throughout 2023, the Company continued its diligent approach to balance sheet management and sought to prioritize flexibility. During 2023, we issued $6.2 billion in senior notes to prepare for upcoming maturities as well as provide additional liquidity during the larger TD Ameritrade conversion weekends. Total balance sheet assets decreased 11% from year-end 2022 to $493.2 billion at December 31, 2023, due primarily to client cash realignment amid the higher interest rate environment. To assist in facilitating these client cash movements from sweep products to high-yielding cash and fixed income alternatives, the

(1) Adjusted diluted EPS, adjusted total expenses, and return on tangible common equity are non-GAAP financial measures. See Non-GAAP Financial Measures for further details and a reconciliation of such measures to GAAP reported results.
- 31 -


THE CHARLES SCHWAB CORPORATION
Management’s Discussion and Analysis of Financial Condition and Results of Operations
(Tabular Amounts in Millions, Except Ratios, or as Noted)

Company utilized supplemental funding sources, including FHLB borrowings and issuances of brokered CDs. As realignment activity significantly decreased in the second half of the year, by year-end, we reduced the total outstanding balance of such supplemental sources by approximately 18% from the peak balances reached in May 2023. Driven by a combination of the Company’s net income and also a smaller balance sheet in 2023, our consolidated Tier 1 Leverage Ratio increased to 8.5% as of year-end.

2022 Compared to 2021

Schwab’s 2022 financial results reflected strong performance against a challenging economic backdrop. Our clients faced a very difficult environment throughout the year, encountering inflation and global economic concerns, with Russia’s invasion of Ukraine exacerbating the impact. Equity markets suffered their worst year since 2008, with the S&P 500® and NASDAQ Composite® contracting 19% and 33%, respectively, in 2022, while investor sentiment remained bearish throughout the year. At the same time, the Federal Reserve raised short-term rates at the fastest pace in 40 years, ultimately increasing the Fed Funds rate seven times to reach an upper bound of 4.50% in December. Additionally, uncertainty around future macroeconomic growth increased in the second half of the year, weighing on longer-term rates and leading to an inverted yield curve.

Through these challenges, clients continued to turn to Schwab for help in achieving their financial goals. Core net new assets in 2022 totaled $427.7 billion, representing an organic growth rate of 5%, which included significant tax-related outflows in April. Total client assets were $7.05 trillion at December 31, 2022, down 13% from year-end 2021, as market value declines of approximately $1.5 trillion in client assets more than offset the Company’s continued asset gathering during the year. DATs in 2022 were 5.9 million, down 9% from the prior year, as trading volume subsided from the extraordinary levels seen in 2021. New brokerage accounts were also down from the prior year, as clients opened 4.0 million new brokerage accounts in 2022; active brokerage accounts totaled 33.8 million at December 31, 2022, up 2% from year-end 2021.

Schwab’s financial performance in 2022 reflected the resiliency of our diversified financial model in a challenging macroeconomic environment and impacts from higher market interest rates. Net income totaled $7.2 billion in 2022 and diluted EPS was $3.50, representing year-over-year growth of 23% and 24%, respectively. Adjusted diluted EPS (1) was $3.90 in 2022, up from $3.25 in 2021.

Total net revenues rose 12% year-over-year to $20.8 billion in 2022. Net interest revenue increased to $10.7 billion, rising 33% from 2021 as significantly higher market rates more than offset the impact of balance sheet contraction due to client cash allocation decisions. Asset management and administration fees totaled $4.2 billion in 2022, down 1% year-over-year as lower market valuations throughout the year offset the benefit of lower money market fund fee waivers. Trading revenue declined by 12% to $3.7 billion in 2022, due to lower DATs relative to the extraordinary trading volume seen in 2021 and changes in mix of client trading activity. Bank deposit account fee revenue was $1.4 billion in 2022, up 7% from 2021 as higher average net yields more than offset lower average BDA balances. BDA balances totaled $126.6 billion at December 31, 2022, down 20% from year-end 2021, reflecting client cash allocation decisions and migrations to our balance sheet.

Total expenses excluding interest amounted to $11.4 billion in 2022, increasing 5% from 2021, and adjusted total expenses (1) were $10.4 billion, up 7% from the prior year. These increases reflected higher compensation and benefits expense and higher occupancy and equipment expense, as we continued to invest in our people and technology to support ongoing growth in our client base. These increases were partially offset by lower other expense, which included a charge of approximately $200 million in 2021 for a regulatory matter settled in 2022. Acquisition and integration-related costs and amortization of acquired intangibles were $392 million and $596 million, respectively, in 2022, compared with $468 million and $615 million, respectively, in 2021.

Return on average common stockholders’ equity grew to 18% in 2022 from 11% in 2021, while ROTCE (1) increased to 42% in 2022 compared with 22% in 2021. The increases in both return on average common stockholders’ equity and ROTCE were due primarily to lower stockholders’ equity and growth in net income. Stockholders’ equity declined in 2022 primarily due to a significant decrease in AOCI, as higher market interest rates resulted in larger unrealized losses on our AFS investment securities portfolio. In January and November 2022, the Company transferred $108.8 billion and $79.8 billion, respectively, of investment securities from the AFS category to the HTM category (see Capital Management and Item 8 – Note 5).

(1) Adjusted diluted EPS, adjusted total expenses, and return on tangible common equity are non-GAAP financial measures. See Non-GAAP Financial Measures for further details and a reconciliation of such measures to GAAP reported results.


- 32 -


THE CHARLES SCHWAB CORPORATION
Management’s Discussion and Analysis of Financial Condition and Results of Operations
(Tabular Amounts in Millions, Except Ratios, or as Noted)

The Company continued its diligent approach to balance sheet management in 2022, maintaining appropriate capital and liquidity to support client activity and returning excess capital to stockholders. As market rates rose from near-zero levels at the
beginning of the year, clients allocated a growing portion of their assets to higher-yielding cash and fixed income alternatives.

Total balance sheet assets decreased 17% year-over-year to $551.8 billion at December 31, 2022 as a result of these client cash allocation decisions and unrealized losses on AFS securities, both resulting primarily from higher market interest rates. To facilitate these client cash movements, we took steps to enhance our liquidity by limiting new portfolio investments to help build available cash and utilizing supplemental funding sources including FHLB advances and brokered CDs.

We increased our common stock dividend by 22% during 2022, and implemented a $15 billion share repurchase authorization in July. Repurchases under this new authorization totaled 47 million shares for $3.4 billion in 2022. The Company issued $750 million in preferred stock in the first quarter of 2022, and redeemed a total of $1.0 billion of preferred stock during the second half of the year. Inclusive of these actions, the Company’s Tier 1 Leverage Ratio finished the year at 7.2%.

Integration of TD Ameritrade

The Company has made significant progress in its integration of TD Ameritrade. Over the course of 2023, the Company transitioned approximately $1.6 trillion in client assets across more than 15 million client accounts, including 7,000 RIAs, from TD Ameritrade to the Schwab platform across four transition groups. The Company has now completed the transition of RIAs and approximately 90% of all TD Ameritrade client accounts. In connection with the completed 2023 transitions, we have experienced some deal-related attrition of client assets from retail accounts and RIAs, which have been below our initial estimates when we announced the acquisition. The Company expects to complete the remaining client transitions from TD Ameritrade to Schwab in a final transition group in May 2024.

The Company continues to expect total acquisition and integration-related costs and capital expenditures will be between $2.4 billion and $2.5 billion. The Company’s estimates of the nature, amounts, and timing of recognition of acquisition and integration-related costs remain subject to change based on certain factors, including the duration and complexity of the remaining integration process and the continued uncertain