Item 16. Form 10-K Summary

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Item 16. Form 10-K Summary

None.

-134-

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 26, 2025.


			THE CHARLES SCHWAB CORPORATION
			(Registrant)

			BY:			/s/ Richard A. Wurster
						Richard A. Wurster,
						President 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 26, 2025.


Signature / Title						Signature / Title

/s/ Richard A. Wurster						/s/ Michael D. Verdeschi
Richard A. Wurster,						Michael D. Verdeschi,
President and Chief Executive Officer and Director (principal executive officer)						Managing Director and Chief Financial Officer (principal financial and accounting officer)

/s/ Charles R. Schwab						/s/ Walter W. Bettinger II
Charles R. Schwab, Co-Chairman of the Board						Walter W. Bettinger II, Co-Chairman of the Board

/s/ John K. Adams, Jr.						/s/ Marianne C. Brown
John K. Adams, Jr., Director						Marianne C. Brown, Director

/s/ Joan T. Dea						/s/ Christopher V. Dodds
Joan T. Dea, Director						Christopher V. Dodds, Director

/s/ Stephen A. Ellis						/s/ Frank C. Herringer
Stephen A. Ellis, Director						Frank C. Herringer, Director

/s/ Gerri K. Martin-Flickinger						/s/ Todd M. Ricketts
Gerri K. Martin-Flickinger, 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

- 135 -

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,	2024						2023						2022
	Average				Average		Average				Average		Average				Average
	Balance		Interest		Rate		Balance		Interest		Rate		Balance		Interest		Rate
Assets:
Cash and cash equivalents	$	29,676	$	1,539	5.10	%	$	37,846	$	1,894	4.94	%	$	57,163	$	812	1.40	%
Cash and investments segregated	28,450		1,443		4.99	%	28,259		1,355		4.73	%	49,430		691		1.38	%

Receivables from brokerage clients	70,811		5,420		7.53	%	61,914		4,793		7.64	%	75,614		3,321		4.33	%
Available for sale securities (1)	101,659		2,166		2.12	%	137,178		2,987		2.17	%	260,392		4,139		1.58	%
Held to maturity securities (1)	152,566		2,636		1.72	%	165,634		2,872		1.73	%	112,357		1,688		1.50	%
Bank loans (2)	42,255		1,867		4.42	%	40,234		1,664		4.14	%	38,816		1,083		2.79	%
Total interest-earning assets	425,417		15,071		3.51	%	471,065		15,565		3.28	%	593,772		11,734		1.96	%
Securities lending revenue			330						419						471
Other interest revenue			136						127						22
Total interest-earning assets	425,417		15,537		3.61	%	471,065		16,111		3.39	%	593,772		12,227		2.04	%
Non-interest-earning assets (3,4)	37,643						34,695						24,962
Total assets	$	463,060					$	505,760					$	618,734

Liabilities and Stockholders’ Equity:
Bank deposits	$	256,212	$	3,152	1.23	%	$	306,505	$	3,363	1.10	%	$	424,168	$	723	0.17	%
Payables to brokers, dealers, and clearing organizations (3,5)	8,522		372		4.30	%	4,477		147		3.23	%	5,884		48		0.81	%
Payables to brokerage clients	72,776		272		0.37	%	66,842		271		0.41	%	97,825		123		0.13	%
Other short-term borrowings	9,146		504		5.51	%	7,144		375		5.25	%	2,719		48		1.75	%
Federal Home Loan Bank borrowings	23,102		1,245		5.32	%	34,821		1,810		5.14	%	2,274		106		4.59	%
Long-term debt	23,083		846		3.66	%	22,636		715		3.16	%	20,714		498		2.40	%
Total interest-bearing liabilities (5)	392,841		6,391		1.62	%	442,425		6,681		1.51	%	553,584		1,546		0.28	%

Other interest expense			2						3						(1)
Non-interest-bearing liabilities (3,5,6)	25,651						25,802						21,712
Total liabilities (7)	418,492		6,393		1.49	%	468,227		6,684		1.41	%	575,296		1,545		0.26	%
Stockholders’ equity (3)	44,568						37,533						43,438
Total liabilities and stockholders’ equity	$	463,060					$	505,760					$	618,734

Net interest revenue			$	9,144					$	9,427					$	10,682
Net yield on interest-earning assets					2.12	%					1.98	%					1.78	%

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

(2) Includes average principal balances of nonaccrual loans.

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

(4) 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.

(5) Beginning in 2024, payables to brokers, dealers, and clearing organizations is presented separately from non-interest-bearing liabilities and included in total interest-bearing liabilities. This line item includes securities loaned and related interest expense. Prior period amounts have been reclassified to reflect this change.

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

(7)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:


	2024 Compared to 2023 Increase (Decrease) Due to Change in:						2023 Compared to 2022 Increase (Decrease) Due to Change in:
	Average Volume		Average Rate		Total		Average Volume		Average Rate		Total
Interest-earning assets:
Cash and cash equivalents (1)	$	(404)	$	49	$	(355)	$	(270)	$	1,352	$	1,082
Cash and investments segregated	9		79		88		(292)		956		664
Receivables from brokerage clients	680		(53)		627		(593)		2,065		1,472
Available for sale securities (2)	(771)		(50)		(821)		(1,947)		795		(1,152)
Held to maturity securities (2)	(226)		(10)		(236)		799		385		1,184
Bank loans (3)	84		119		203		40		541		581
Securities lending revenue	—		(89)		(89)		—		(52)		(52)
Other interest revenue	—		9		9		—		105		105
Total interest-earning assets	$	(628)	$	54	$	(574)	$	(2,263)	$	6,147	$	3,884
Interest-bearing sources of funds:
Bank deposits	$	(553)	$	342	$	(211)	$	(200)	$	2,840	$	2,640
Payables to brokers, dealers, and clearing organizations (4)	131		94		225		(11)		110		99
Payables to brokerage clients	24		(23)		1		(40)		188		148
Other short-term borrowings	105		24		129		77		250		327
Federal Home Loan Bank borrowings	(602)		37		(565)		1,494		210		1,704
Long-term debt	14		117		131		46		171		217

Other interest expense	—		(1)		(1)		—		4		4
Total sources on which interest is paid (4)	(881)		590		(291)		1,366		3,773		5,139
Change in net interest revenue (4)	$	253	$	(536)	$	(283)	$	(3,629)	$	2,374	$	(1,255)

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) Includes average principal balances of nonaccrual loans.

(4) Beginning in 2024, payables to brokers, dealers, and clearing organizations is presented separately within total sources on which interest is paid. This line item includes securities loaned and related interest expense. 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, 2024	Within 1 year		After 1 year through 5 years		After 5 years through 15 years		After 15 years		Total
Residential real estate:
First Mortgages	$	—	$	32	$	1,215	$	26,142	$	27,389
HELOCs	—		—		94		330		424
Total residential real estate	—		32		1,309		26,472		27,813
Pledged asset lines	16,726		298		—		—		17,024
Other	7		330		59		3		399
Total	$	16,733	$	660	$	1,368	$	26,475	$	45,236

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, 2024	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	$	—	$	39	$	22,973
HELOCs	—		94		330
Total residential real estate	—		133		23,303
Pledged asset lines	298		—		—
Other	1		—		—
Total loans with floating or adjustable interest rates	299		133		23,303
Loans with predetermined interest rates:
Residential real estate:
First Mortgages	32		1,177		3,169
HELOCs	—		—		—
Total residential real estate	32		1,177		3,169
Pledged asset lines	—		—		—
Other	329		58		3
Total loans with predetermined interest rates	361		1,235		3,172
Total	$	660	$	1,368	$	26,475

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 7 for the values underlying these ratios:


December 31,	2024		2023
Allowance for credit losses to total year-end loans	0.05	%	0.09	%
Nonaccrual loans to total year-end loans	0.08	%	0.04	%
Allowance for credit losses to total nonaccrual year-end loans	60	%	253	%

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,	2024			2023			2022
	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	$	26,531	—	$	25,748	—	$	23,639	—
HELOCs	446		—	525		—	617		(.16)	%
Total residential real estate	26,977		—	26,273		—	24,256		—
Pledged asset lines	14,924		—	13,727		—	14,360		.03	%
Other	354		—	234		—	200		—
Total	$	42,255	—	$	40,234	—	$	38,816	.01	%

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. Although nonaccrual First Mortgages outstanding increased in 2024 compared to 2023, the ratios of the allowance for credit losses to year-end loans and nonaccrual loans decreased primarily due to the 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 7.

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,	2024				2023
	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	$	14	61	%	$	32	65	%
HELOCs	1		1	%	2		1	%
Total residential real estate	15		62	%	34		66	%
Pledged asset lines	—		38	%	—		33	%
Other	6		—		4		1	%
Total	$	21	100	%	$	38	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,	2024				2023
	Amount		Rate		Amount		Rate
Analysis of average daily deposits:
Money market and other savings deposits	$	200,074	0.56	%	$	233,091	0.59	%
Time certificates of deposit	37,390		5.22	%	36,028		5.08	%
Interest-bearing demand deposits (1)	—		—		37,386		0.41	%
Total	$	237,464			$	306,505

(1) Interest-bearing demand deposits did not exceed ten percent of average total bank deposits for the year ended December 31, 2024.

As of December 31, 2024 and 2023, uninsured bank deposits totaled approximately $32.7 billion and $34.5 billion, respectively. As of December 31, 2024 and 2023, the Company’s bank deposits did not include any time deposits that were in excess of FDIC insurance limits or otherwise uninsured.

F-6

Previous: Item 15. Exhibits and Financial Statement Schedules