Item 16. Form 10-K Summary

None.

-138-

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 23, 2024.

			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 23, 2024.

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/ Frank C. Herringer
Mark A. Goldfarb, Director						Frank C. Herringer, Director
/s/ Brian M. Levitt						/s/ Gerri K. Martin-Flickinger
Brian M. Levitt, Director						Gerri K. Martin-Flickinger, Director
/s/ Bharat B. Masrani						/s/ Todd M. Ricketts
Bharat B. Masrani, Director						Todd M. Ricketts, Director
/s/ Charles A. Ruffel						/s/ Arun Sarin
Charles A. Ruffel, Director						Arun Sarin, Director
/s/ Carrie Schwab-Pomerantz						/s/ Paula A. Sneed
Carrie Schwab-Pomerantz, Director						Paula A. Sneed, Director

- 139 -

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,			2023									2022									2021
			Average						Average			Average						Average			Average						Average
			Balance			Interest			Rate			Balance			Interest			Rate			Balance			Interest			Rate
Assets:
Cash and cash equivalents			$	37,846		$	1,894		4.94		%	$	57,163		$	812		1.40		%	$	40,325		$	40		0.10		%
Cash and investments segregated			28,259			1,355			4.73		%	49,430			691			1.38		%	43,942			24			0.05		%
Receivables from brokerage clients			61,914			4,793			7.64		%	75,614			3,321			4.33		%	77,768			2,455			3.11		%
Available for sale securities (1,2)			137,178			2,987			2.17		%	260,392			4,139			1.58		%	357,122			4,641			1.30		%
Held to maturity securities (1,2)			165,634			2,872			1.73		%	112,357			1,688			1.50		%	—			—			—
Bank loans (3)			40,234			1,664			4.14		%	38,816			1,083			2.79		%	28,789			620			2.15		%
Total interest-earning assets			471,065			15,565			3.28		%	593,772			11,734			1.96		%	547,946			7,780			1.41		%
Securities lending revenue						419									471									720
Other interest revenue						127									22									6
Total interest-earning assets			471,065			16,111			3.39		%	593,772			12,227			2.04		%	547,946			8,506			1.54		%
Non-interest-earning assets (4,5)			34,695									24,962									41,930
Total assets			$	505,760								$	618,734								$	589,876
Liabilities and Stockholders’ Equity:
Bank deposits			$	306,505		$	3,363		1.10		%	$	424,168		$	723		0.17		%	$	381,549		$	54		0.01		%
Payables to brokerage clients			66,842			271			0.41		%	97,825			123			0.13		%	91,667			9			0.01		%
Other short-term borrowings (7)			7,144			375			5.25		%	2,719			48			1.75		%	3,040			9			0.30		%
Federal Home Loan Bank borrowings (6,7)			34,821			1,810			5.14		%	2,274			106			4.59		%	—			—			—
Long-term debt			22,636			715			3.16		%	20,714			498			2.40		%	17,704			384			2.17		%
Total interest-bearing liabilities			437,948			6,534			1.49		%	547,700			1,498			0.27		%	493,960			456			0.09		%
Securities lending expense						147									48									24
Other interest expense						3									(1)									(4)
Non-interest-bearing liabilities (4,8)			30,279									27,596									39,182
Total liabilities (9)			468,227			6,684			1.41		%	575,296			1,545			0.26		%	533,142			476			0.09		%
Stockholders’ equity (4)			37,533									43,438									56,734
Total liabilities and stockholders’ equity			$	505,760								$	618,734								$	589,876
Net interest revenue						$	9,427								$	10,682								$	8,030
Net yield on interest-earning assets									1.98		%							1.78		%							1.45		%

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

(2) During 2022, the Company transferred a portion of its investment securities designated as AFS to the HTM category, as described in Part II – Item 8 – Note 5.

(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) Average balance and interest revenue/expense was less than $500 thousand in the period or periods presented.

(7) Beginning in 2023, FHLB borrowings are presented separately from other short-term borrowings. Prior period amounts have been reclassified to reflect this change.

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

(9)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:

			2023 Compared to 2022 Increase (Decrease) Due to Change in:																		2022 Compared to 2021 Increase (Decrease) Due to Change in:
			Average Volume						Average Rate						Total						Average Volume						Average Rate						Total
Interest-earning assets:
Cash and cash equivalents (1)			$	(270)					$	1,352					$	1,082					$	17					$	755					$	772
Cash and investments segregated			(292)						956						664						3						664						667
Receivables from brokerage clients			(593)						2,065						1,472						(67)						933						866
Available for sale securities (2,3)			(1,947)						795						(1,152)						(2,945)						2,443						(502)
Held to maturity securities (2,3)			799						385						1,184						1,688						—						1,688
Bank loans (4)			40						541						581						216						247						463
Securities lending revenue			—						(52)						(52)						—						(249)						(249)
Other interest revenue			—						105						105						—						16						16
Total interest-earning assets			$	(2,263)					$	6,147					$	3,884					$	(1,088)					$	4,809					$	3,721
Interest-bearing sources of funds:
Bank deposits			$	(200)					$	2,840					$	2,640					$	4					$	665					$	669
Payables to brokerage clients			(40)						188						148						1						113						114
Other short-term borrowings (5)			77						250						327						(100)						139						39
Federal Home Loan Bank borrowings (5)			1,494						210						1,704						106						—						106
Long-term debt			46						171						217						65						49						114
Securities lending expense			—						99						99						—						24						24
Other interest expense			—						4						4						—						3						3
Total sources on which interest is paid			1,377						3,762						5,139						76						993						1,069
Change in net interest revenue			$	(3,640)					$	2,385					$	(1,255)					$	(1,164)					$	3,816					$	2,652

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) During 2022, the Company transferred a portion of its investment securities designated as AFS to the HTM category, as described in Part II – Item 8 – Note 5.

(4) Includes average principal balances of nonaccrual loans.

(5) Beginning in 2023, FHLB borrowings are presented separately from other short-term borrowings. Prior period amounts have been reclassified to reflect this change.

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 as follows:

December 31, 2023			Within 1 year						After 1 year through 5 years						After 5 years through 15 years						After 15 years						Total
Residential real estate:
First Mortgages			$	—					$	37					$	1,358					$	24,758					$	26,153
HELOCs			—						—						113						366						479
Total residential real estate			—						37						1,471						25,124						26,632
Pledged asset lines			13,303						245						—						—						13,548
Other			7						266						24						—						297
Total			$	13,310					$	548					$	1,495					$	25,124					$	40,477

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, 2023			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			$	—					$	45					$	21,488
HELOCs			—						113						366
Total residential real estate			—						158						21,854
Pledged asset lines			245						—						—
Other			—						—						—
Total loans with floating or adjustable interest rates			245						158						21,854
Loans with predetermined interest rates:
Residential real estate:
First Mortgages			$	37					$	1,313					$	3,270
HELOCs			—						—						—
Total residential real estate			37						1,313						3,270
Pledged asset lines			—						—						—
Other			266						24						—
Total loans with predetermined interest rates			303						1,337						3,270
Total			$	548					$	1,495					$	25,124

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 Part II – Item 8 – Note 6 for the values underlying these ratios:

December 31,			2023						2022
Allowance for credit losses to total year-end loans			0.09		%				0.18		%
Nonaccrual loans to total year-end loans			0.04		%				0.06		%
Allowance for credit losses to total nonaccrual year-end loans			253		%				317		%

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,			2023												2022												2021
			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			$	25,748					$	—					$	23,639					—						$	17,673					—
HELOCs			525						—						617						(.16)		%				731						(.14)		%
Total residential real estate			26,273						—						24,256						—						18,404						(.01)		%
Pledged asset lines			13,727						—						14,360						.03		%				10,201						—
Other			234						—						200						—						184						.54		%
Total			$	40,234					$	—					$	38,816					.01		%				$	28,789					—

The increase in the Company’s average loan portfolio in the periods presented has been driven by growth in First Mortgages and PALs, with a slight decrease in PALs in 2023. 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 a low interest rate environment observed through early 2022. The decrease in the ratios of the allowance for credit losses to year-end loans and nonaccrual loans is primarily due to a decrease in the allowance for credit losses resulting from a decrease in projected loss rates and improved credit quality metrics in the Company’s bank loans portfolio in recent years as discussed in Part II – Item 8 – Note 6 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,			2023												2022
			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			$	32					65		%				$	66					63		%
HELOCs			2						1		%				4						1		%
Total residential real estate			34						66		%				70						64		%
Pledged asset lines			—						33		%				—						36		%
Other			4						1		%				3						—
Total			$	38					100		%				$	73					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,			2023									2022
			Amount			Rate						Amount			Rate
Analysis of average daily deposits:
Money market and other savings deposits			$	233,091		0.59		%				$	367,426		0.17		%
Interest-bearing demand deposits			37,386			0.41		%				56,306			0.15		%
Time certificates of deposit (1)			36,028			5.08		%
Total			$	306,505								$	423,732

(1) Time certificates of deposit did not exceed ten percent of average total bank deposits for the year ended December 31, 2022.

As of December 31, 2023 and 2022, uninsured bank deposits totaled approximately $34.5 billion and $68.9 billion, respectively. As of December 31, 2023 and 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