Item 16. Form 10-K Summary

None.

-135-

THE CHARLES SCHWAB CORPORATION

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on February 24, 2023.

			THE CHARLES SCHWAB CORPORATION
			(Registrant)
			BY:			/s/ Walter W. Bettinger II
						Walter W. Bettinger II
						Co-Chairman of the Board and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities indicated, on February 24, 2023.

Signature / Title						Signature / Title
/s/ Walter W. Bettinger II						/s/ Peter Crawford
Walter W. Bettinger II,						Peter Crawford,
Co-Chairman of the Board and Chief Executive Officer (principal executive officer)						Managing Director and Chief Financial Officer (principal financial and accounting officer)
/s/ Charles R. Schwab						/s/ John K. Adams, Jr.
Charles R. Schwab, Co-Chairman of the Board						John K. Adams, Jr., Director
/s/ Marianne C. Brown						/s/ Joan T. Dea
Marianne C. Brown, Director						Joan T. Dea, Director
/s/ Christopher V. Dodds						/s/ Stephen A. Ellis
Christopher V. Dodds, Director						Stephen A. Ellis, Director
/s/ Mark A. Goldfarb						/s/ William S. Haraf
Mark A. Goldfarb, Director						William S. Haraf, Director
/s/ Frank C. Herringer						/s/ Brian M. Levitt
Frank C. Herringer, Director						Brian M. Levitt, Director
/s/ Gerri K. Martin-Flickinger						/s/ Bharat B. Masrani
Gerri K. Martin-Flickinger, Director						Bharat B. Masrani, Director
/s/ Todd M. Ricketts						/s/ Charles A. Ruffel
Todd M. Ricketts, Director						Charles A. Ruffel, Director
/s/ Arun Sarin						/s/ Carrie Schwab-Pomerantz
Arun Sarin, Director						Carrie Schwab-Pomerantz, Director
/s/ Paula A. Sneed
Paula A. Sneed, Director

- 136 -

THE CHARLES SCHWAB CORPORATION

SUPPLEMENTAL INFORMATION
Disclosure			Page
Average Balance Sheets and Net Interest Revenue			F-2
Analysis of Changes in Net Interest Revenue			F-3
Bank Loan Portfolio			F-4
Allowance for Credit Losses on Bank Loans			F-5
Bank Deposits			F-6

F-1

THE CHARLES SCHWAB CORPORATION

Supplemental Financial Data (Unaudited)

(Dollars in Millions)

As a savings and loan holding company, the Company provides the following supplemental information pursuant to Subpart 1400 of Regulation S-K. Other information required by Subpart 1400 of Regulation S-K is presented throughout this Annual Report on Form 10-K.

1. Average Balance Sheets and Net Interest Revenue

For the Year Ended December 31,			2022									2021									2020
			Average						Average			Average						Average			Average						Average
			Balance			Interest			Rate			Balance			Interest			Rate			Balance			Interest			Rate
Assets:
Cash and cash equivalents			$	57,163		$	812		1.40		%	$	40,325		$	40		0.10		%	$	39,052		$	120		0.30		%
Cash and investments segregated			49,430			691			1.38		%	43,942			24			0.05		%	34,100			141			0.41		%
Receivables from brokerage clients			75,614			3,321			4.33		%	77,768			2,455			3.11		%	28,058			848			2.97		%
Available for sale securities (1,2)			260,392			4,139			1.58		%	357,122			4,641			1.30		%	253,555			4,537			1.78		%
Held to maturity securities (1,2)			112,357			1,688			1.50		%	—			—			—			—			—			—
Bank loans (3)			38,816			1,083			2.79		%	28,789			620			2.15		%	20,932			545			2.60		%
Total interest-earning assets			593,772			11,734			1.96		%	547,946			7,780			1.41		%	375,697			6,191			1.64		%
Securities lending revenue						471									720									334
Other interest revenue						22									6									6
Total interest-earning assets			593,772			12,227			2.04		%	547,946			8,506			1.54		%	375,697			6,531			1.73		%
Non-interest-earning assets (4,5)			24,962									41,930									38,608
Total assets			$	618,734								$	589,876								$	414,305
Liabilities and Stockholders’ Equity:
Bank deposits			$	424,168		$	723		0.17		%	$	381,549		$	54		0.01		%	$	291,206		$	93		0.03		%
Payables to brokerage clients			97,825			123			0.13		%	91,667			9			0.01		%	46,347			12			0.02		%
Short-term borrowings (6)			4,993			154			3.07		%	3,040			9			0.30		%	89			—			0.20		%
Long-term debt			20,714			498			2.40		%	17,704			384			2.17		%	8,992			289			3.22		%
Total interest-bearing liabilities			547,700			1,498			0.27		%	493,960			456			0.09		%	346,634			394			0.11		%
Securities lending expense						48									24									33
Other interest expense						(1)									(4)									(9)
Non-interest-bearing liabilities (4,7)			27,596									39,182									32,486
Total liabilities (8)			575,296			1,545			0.26		%	533,142			476			0.09		%	379,120			418			0.11		%
Stockholders’ equity (4)			43,438									56,734									35,185
Total liabilities and stockholders’ equity			$	618,734								$	589,876								$	414,305
Net interest revenue						$	10,682								$	8,030								$	6,113
Net yield on interest-earning assets									1.78		%							1.45		%							1.62		%

(1) Amounts calculated based on amortized cost.

(2) In January 2022 and November 2022, the Company transferred a portion of its investment securities designated as AFS to the HTM category, as described in Item 8 – Note 6.

(3) Includes average principal balances of nonaccrual loans.

(4) Average balance calculation based on month end balances.

(5) Non-interest-earning assets include equipment, office facilities, and property – net, goodwill, acquired intangible assets – net, and other assets that do not generate interest income.

(6) Interest revenue or expense was less than $500 thousand in the period or periods presented.

(7) Non-interest-bearing liabilities consist of other liabilities that do not generate interest expense.

(8)Average rate calculation based on total funding sources.

F-2

THE CHARLES SCHWAB CORPORATION

Supplemental Financial Data (Unaudited)

(Dollars in Millions)

2. Analysis of Changes in Net Interest Revenue

An analysis of the year-to-year changes in the categories of interest revenue and interest expense resulting from changes in volume and rate is as follows:

			2022 Compared to 2021 Increase (Decrease) Due to Change in:																		2021 Compared to 2020 Increase (Decrease) Due to Change in:
			Average Volume						Average Rate						Total						Average Volume						Average Rate						Total
Interest-earning assets:
Cash and cash equivalents (1)			$	17					$	755					$	772					$	4					$	(84)					$	(80)
Cash and investments segregated			3						664						667						40						(157)						(117)
Receivables from brokerage clients			(67)						933						866						1,476						131						1,607
Available for sale securities (2,3)			(2,945)						2,443						(502)						1,843						(1,739)						104
Held to maturity securities (2,3)			1,688						—						1,688						—						—						—
Bank loans (4)			216						247						463						204						(129)						75
Securities lending revenue			—						(249)						(249)						—						386						386
Other interest revenue			—						16						16						—						—						—
Total interest-earning assets			$	(1,088)					$	4,809					$	3,721					$	3,567					$	(1,592)					$	1,975
Interest-bearing sources of funds:
Bank deposits			$	4					$	665					$	669					$	27					$	(66)					$	(39)
Payables to brokerage clients			1						113						114						9						(12)						(3)
Short-term borrowings			6						139						145						6						3						9
Long-term debt			65						49						114						281						(186)						95
Securities lending expense			—						24						24						—						(9)						(9)
Other interest expense			—						3						3						—						5						5
Total sources on which interest is paid			76						993						1,069						323						(265)						58
Change in net interest revenue			$	(1,164)					$	3,816					$	2,652					$	3,244					$	(1,327)					$	1,917

Note: Changes that are not due solely to volume or rate have been allocated to rate.

(1) Includes deposits with banks and short-term investments.

(2) Amounts have been calculated based on amortized cost.

(3) In January 2022 and November 2022, the Company transferred a portion of its investment securities designated as AFS to the HTM category, as described in Item 8 - Note 6.

(4) Includes average principal balances of nonaccrual loans.

F-3

THE CHARLES SCHWAB CORPORATION

Supplemental Financial Data (Unaudited)

(Dollars in Millions)

3. Bank Loan Portfolio

The maturities of the bank loan portfolio are described below:

December 31, 2022			Within 1 year						After 1 year through 5 years						After 5 years through 15 years						After 15 years						Total
Residential real estate:
First Mortgages			$	—					$	15					$	1,500					$	23,683					$	25,198
HELOCs			—						—						82						515						597
Total residential real estate			—						15						1,582						24,198						25,795
Pledged asset lines			13,934						658						—						—						14,592
Other			6						183						2						—						191
Total			$	13,940					$	856					$	1,584					$	24,198					$	40,578

Note: Maturities in the above table are based upon the contractual terms of the loans. The maturities for HELOCs are based on 30-year loan terms, with an initial draw period of ten years, followed by a 20-year amortizing period.

The interest sensitivity of loans with contractual maturities in excess of one year is as follows:

December 31, 2022			After 1 year through 5 years						After 5 years through 15 years						After 15 years
Loans with floating or adjustable interest rates
Residential real estate:
First Mortgages			$	—					$	36					$	20,425
HELOCs			—						82						515
Total residential real estate			—						118						20,940
Pledged asset lines			658						—						—
Other			1						—						—
Total loans with floating or adjustable interest rates			659						118						20,940
Loans with predetermined interest rates
Residential real estate:
First Mortgages			$	15					$	1,464					$	3,258
HELOCs			—						—						—
Total residential real estate			15						1,464						3,258
Pledged asset lines			—						—						—
Other			182						2						—
Total loans with predetermined interest rates			197						1,466						3,258
Total			$	856					$	1,584					$	24,198

Note: Maturities in the above table are based upon the contractual terms of the loans. The maturities for HELOCs are based on 30-year loan terms, with an initial draw period of ten years, followed by a 20-year amortizing period.

F-4

THE CHARLES SCHWAB CORPORATION

Supplemental Financial Data (Unaudited)

(Dollars in Millions)

4. Allowance for Credit Losses on Bank Loans

The following table presents several credit ratios related to the Company’s bank loans portfolio. See Item 8 – Note 7 for the values underlying these ratios:

December 31,			2022						2021
Allowance for credit losses to total year-end loans			0.18		%				0.05		%
Nonaccrual loans to total year-end loans			0.06		%				0.10		%
Allowance for credit losses to total nonaccrual year-end loans			317		%				51		%

The following table presents information regarding average loans outstanding during the period and the ratio of net charge-offs (recoveries) during the period to average loans outstanding:

Year Ended December 31,			2022												2021												2020
			Average loans						Net charge-offs (recoveries) to average loans						Average loans						Net charge-offs (recoveries) to average loans						Average loans						Net charge-offs (recoveries) to average loans
Residential real estate:
First Mortgages			$	23,639					—						$	17,673					—						$	13,635					(.01)		%
HELOCs			617						(.16)		%				731						(.14)		%				981						—
Total residential real estate			24,256						—						18,404						(.01)		%				14,616						(.01)		%
Pledged asset lines			14,360						.03		%				10,201						—						6,125						—
Other			200						—						184						.54		%				191						—
Total			$	38,816					.01		%				$	28,789					—						$	20,932					—

The increase in the Company’s average loan portfolio in the periods presented has been driven by growth in First Mortgages and PALs. Growth in these loan types is due in large part to overall growth in Schwab’s client base and net new client assets during the periods presented, as well as the low interest rate environment observed from 2020 through early 2022. The increase in the ratios of the allowance for credit losses to year-end loans and nonaccrual loans is primarily due to an increase in the allowance for credit losses due to higher modeled projections of loss rates as a result of macroeconomic factors as discussed in Item 8 – Note 7 and lower nonaccrual First Mortgages outstanding.

The following table presents the allocation of the allowance for credit losses for bank loans and loans by category as a percentage of total bank loans:

December 31,			2022												2021
			Allowance for Credit Losses						Percent of loans to total loans						Allowance for Credit Losses						Percent of loans to total loans
Residential real estate:
First Mortgages			$	66					63		%				$	13					60		%
HELOCs			4						1		%				2						2		%
Total residential real estate			70						64		%				15						62		%
Pledged asset lines			—						36		%				—						37		%
Other			3						—						3						1		%
Total			$	73					100		%				$	18					100		%

F-5

THE CHARLES SCHWAB CORPORATION

Supplemental Financial Data (Unaudited)

(Dollars in Millions)

5. Bank Deposits

The following table presents the average amount of and the average rate paid on deposit categories that are in excess of ten percent of average total bank deposits:

Year Ended December 31,			2022									2021
			Amount			Rate						Amount			Rate
Analysis of average daily deposits:
Money market and other savings deposits			$	367,426		0.17		%				$	349,665		0.01		%
Interest-bearing demand deposits (1)			56,306			0.15		%
Total			$	423,732								$	349,665

(1) Interest-bearing demand deposits did not exceed ten percent of average total bank deposits for the year ended December 31, 2021.

As of December 31, 2022 and 2021, uninsured bank deposits totaled approximately $68.9 billion and $134.8 billion, respectively. As of December 31, 2022, the Company’s bank deposits did not include any time deposits that were in excess of FDIC insurance limits or were otherwise uninsured.

F-6