Item 1. Condensed Consolidated Financial Statements

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Item 1. Condensed Consolidated Financial Statements

THE CHARLES SCHWAB CORPORATION

Condensed Consolidated Statements of Income

(In Millions, Except Per Share Amounts)

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Net Revenues
Interest revenue	$	4,146	$	3,787	$	8,108	$	7,544
Interest expense	(789)		(965)		(1,607)		(2,016)
Net interest revenue	3,357		2,822		6,501		5,528
Asset management and administration fees	1,825		1,570		3,584		3,100
Trading revenue	1,215		952		2,304		1,860
Bank deposit account fees	333		247		628		492
Other	342		260		537		470


Total net revenues	7,072		5,851		13,554		11,450
Expenses Excluding Interest
Compensation and benefits	1,790		1,536		3,602		3,208
Professional services	307		291		610		560
Occupancy and equipment	301		270		586		544
Advertising and market development	111		108		212		204
Communications	198		176		361		329
Depreciation and amortization	198		215		399		432
Amortization of acquired intangible assets	142		128		274		258
Regulatory fees and assessments	63		77		138		166
Other	293		247		515		491
Total expenses excluding interest	3,403		3,048		6,697		6,192
Income before taxes on income	3,669		2,803		6,857		5,258
Taxes on income	869		677		1,578		1,223
Net Income	2,800		2,126		5,279		4,035
Preferred stock dividends and other	119		149		201		262
Net Income Available to Common Stockholders	$	2,681	$	1,977	$	5,078	$	3,773
Weighted-Average Common Shares Outstanding:
Basic	1,735		1,817		1,740		1,819
Diluted	1,739		1,822		1,745		1,825

Earnings Per Common Shares Outstanding (1):
Basic	$	1.55	$	1.09	$	2.92	$	2.07
Diluted	$	1.54	$	1.08	$	2.91	$	2.07

(1) For additional information on earnings per common shares outstanding for both voting and nonvoting common stock, see Notes 15 and 17.

See Notes to Condensed Consolidated Financial Statements.

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THE CHARLES SCHWAB CORPORATION

Condensed Consolidated Statements of Comprehensive Income

(In Millions)

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Net income	$	2,800	$	2,126	$	5,279	$	4,035
Other comprehensive income (loss), before tax:
Change in net unrealized gain (loss) on available for sale securities:
Net unrealized gain (loss)	(10)		617		(2)		1,678

Other reclassifications included in other revenue	25		30		25		40
Change in net unrealized gain (loss) on held to maturity securities:

Amortization of amounts previously recorded upon transfer to held to maturity from available for sale	514		561		1,010		1,099
Change in net unrealized gain (loss) on derivatives designated as cash flow hedging instruments:
Net unrealized gain (loss)	(315)		(15)		(540)		(15)
Reclassifications included in interest revenue	22		17		40		17
Other	—		5		(2)		6
Other comprehensive income (loss), before tax	236		1,215		531		2,825
Income tax effect	(54)		(185)		(123)		(568)
Other comprehensive income (loss), net of tax	182		1,030		408		2,257
Comprehensive Income (Loss)	$	2,982	$	3,156	$	5,687	$	6,292

See Notes to Condensed Consolidated Financial Statements.

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THE CHARLES SCHWAB CORPORATION

Condensed Consolidated Balance Sheets

(In Millions, Except Per Share and Share Amounts)

(Unaudited)


	June 30, 2026		December 31, 2025
Assets
Cash and cash equivalents (including resale agreements of $600 at June 30, 2026)	$	40,580	$	46,030
Cash and investments segregated and on deposit for regulatory purposes (including resale agreements of $12,636 and $16,901 at June 30, 2026 and December 31, 2025, respectively)	33,011		42,931
Receivables from brokers, dealers, and clearing organizations	22,004		7,190
Receivables from brokerage clients — net	122,848		104,660
Available for sale securities (amortized cost of $66,312 and $66,225 at June 30, 2026 and December 31, 2025, respectively; including assets pledged of $760 and $281, respectively)	62,467		62,357
Held to maturity securities (including assets pledged of $3,933 and $1,270 at June 30, 2026 and December 31, 2025, respectively)	130,568		133,969
Bank loans — net	66,996		57,955
Equipment, office facilities, and property — net	3,659		3,091
Goodwill	12,290		11,951
Acquired intangible assets — net	7,283		7,233
Other assets	15,560		13,628
Total assets	$	517,266	$	490,995
Liabilities and Stockholders’ Equity
Bank deposits	$	249,682	$	255,747
Payables to brokers, dealers, and clearing organizations	43,826		25,689
Payables to brokerage clients	123,968		116,341
Accrued expenses and other liabilities	12,529		12,831
Other short-term borrowings	13,945		6,913
Federal Home Loan Bank borrowings	500		1,850
Long-term debt	22,669		22,199
Total liabilities	467,119		441,570
Stockholders’ equity:
Preferred stock — $.01 par value per share; aggregate liquidation preference of $6,315 and $6,871 at June 30, 2026 and December 31, 2025, respectively	6,213		6,763
Common stock — 3 billion shares authorized; $.01 par value per share; 2,074,188,875 issued at June 30, 2026 and December 31, 2025	21		21
Nonvoting common stock — 300 million shares authorized; $.01 par value per share; no shares issued at June 30, 2026 and December 31, 2025	—		—
Additional paid-in capital	28,179		27,996
Retained earnings	48,044		44,065
Treasury stock, at cost — 346,069,683 and 315,863,800 shares at June 30, 2026 and December 31, 2025, respectively	(21,735)		(18,437)
Accumulated other comprehensive loss	(10,575)		(10,983)
Total stockholders’ equity	50,147		49,425
Total liabilities and stockholders’ equity	$	517,266	$	490,995

See Notes to Condensed Consolidated Financial Statements.

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THE CHARLES SCHWAB CORPORATION

Condensed Consolidated Statements of Stockholders’ Equity

(In Millions)

(Unaudited)


													Accumulated Other Comprehensive Income (Loss)
	Preferred Stock		Common Stock			Additional Paid-in Capital	Retained Earnings		Treasury Stock, at cost		Total
	Shares		Amount
Balance at March 31, 2025	$	9,191	2,074	$	21		$	27,664	$	38,882	$	(12,626)	$	(13,621)	$	49,511
Net income	—		—	—			—		2,126		—		—		2,126
Other comprehensive income (loss), net of tax	—		—	—			—		—		—		1,030		1,030

Redemption of preferred stock	(2,428)		—	—			—		(30)		—		—		(2,458)

Dividends declared on preferred stock	—		—	—			—		(115)		—		—		(115)
Dividends declared on common stock — $.27 per share	—		—	—			—		(493)		—		—		(493)
Repurchase of common stock, inclusive of tax	—		—	—			—		—		(353)		—		(353)


Stock option exercises and other	—		—	—			34		—		36		—		70
Share-based compensation	—		—	—			65		—		—		—		65
Other	—		—	—			50		4		14		—		68
Balance at June 30, 2025	$	6,763	2,074	$	21		$	27,813	$	40,374	$	(12,929)	$	(12,591)	$	49,451

Balance at March 31, 2026	$	6,763	2,074	$	21		$	28,047	$	45,912	$	(20,752)	$	(10,757)	$	49,234
Net income	—		—	—			—		2,800		—		—		2,800
Other comprehensive income (loss), net of tax	—		—	—			—		—		—		182		182
Issuance of preferred stock, net	1,480		—	—			—		—		—		—		1,480
Redemption of preferred stock	(2,030)		—	—			—		(25)		—		—		(2,055)

Dividends declared on preferred stock	—		—	—			—		(82)		—		—		(82)
Dividends declared on common stock — $.32 per share	—		—	—			—		(561)		—		—		(561)
Repurchase of common stock, inclusive of tax	—		—	—			—		—		(1,008)		—		(1,008)


Stock option exercises and other	—		—	—			(7)		—		18		—		11
Share-based compensation	—		—	—			84		—		—		—		84
Other	—		—	—			55		—		7		—		62
Balance at June 30, 2026	$	6,213	2,074	$	21		$	28,179	$	48,044	$	(21,735)	$	(10,575)	$	50,147

Continued on following page.

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THE CHARLES SCHWAB CORPORATION

Condensed Consolidated Statements of Stockholders’ Equity

(In Millions)

(Unaudited)

Continued from previous page.


	Preferred Stock		Common Stock			Nonvoting Common Stock			Additional Paid-in Capital		Retained Earnings		Treasury Stock, at cost		Accumulated Other Comprehensive Income (Loss)		Total
	Shares		Amount	Shares		Amount
Balance at December 31, 2024	$	9,191	2,023	$	20	51	$	1	$	27,639	$	37,568	$	(11,196)	$	(14,848)	$	48,375
Net income	—		—	—		—	—		—		4,035		—		—		4,035
Other comprehensive income (loss), net of tax	—		—	—		—	—		—		—		—		2,257		2,257

Redemption of preferred stock	(2,428)		—	—		—	—		—		(30)		—		—		(2,458)

Dividends declared on preferred stock	—		—	—		—	—		—		(218)		—		—		(218)
Dividends declared on common stock — $.54 per share	—		—	—		—	—		—		(985)		—		—		(985)
Repurchase of common stock, inclusive of tax	—		—	—		—	—		—		—		(353)		—		(353)
Repurchase of nonvoting common stock, inclusive of tax	—		19	—		(19)	—		—		—		(1,512)		—		(1,512)
Conversion of nonvoting common stock to common stock	—		32	1		(32)	(1)		—		—		—		—		—
Stock option exercises and other	—		—	—		—	—		(89)		—		198		—		109
Share-based compensation	—		—	—		—	—		181		—		—		—		181
Other	—		—	—		—	—		82		4		(66)		—		20
Balance at June 30, 2025	$	6,763	2,074	$	21	—	$	—	$	27,813	$	40,374	$	(12,929)	$	(12,591)	$	49,451

Balance at December 31, 2025	$	6,763	2,074	$	21	—	$	—	$	27,996	$	44,065	$	(18,437)	$	(10,983)	$	49,425
Net income	—		—	—		—	—		—		5,279		—		—		5,279
Other comprehensive income (loss), net of tax	—		—	—		—	—		—		—		—		408		408
Issuance of preferred stock, net	1,480		—	—		—	—		—		—		—		—		1,480
Redemption of preferred stock	(2,030)		—	—		—	—		—		(25)		—		—		(2,055)

Dividends declared on preferred stock	—		—	—		—	—		—		(152)		—		—		(152)
Dividends declared on common stock — $.64 per share	—		—	—		—	—		—		(1,123)		—		—		(1,123)
Repurchase of common stock, inclusive of tax	—		—	—		—	—		—		—		(3,407)		—		(3,407)


Stock option exercises and other	—		—	—		—	—		(132)		—		190		—		58
Share-based compensation	—		—	—		—	—		211		—		—		—		211
Other	—		—	—		—	—		104		—		(81)		—		23
Balance at June 30, 2026	$	6,213	2,074	$	21	—	$	—	$	28,179	$	48,044	$	(21,735)	$	(10,575)	$	50,147

See Notes to Condensed Consolidated Financial Statements.

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THE CHARLES SCHWAB CORPORATION

Condensed Consolidated Statements of Cash Flows

(in Millions)

(Unaudited)


	Six Months Ended June 30,
	2026		2025
Cash Flows from Operating Activities
Net income	$	5,279	$	4,035
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Share-based compensation	230		198
Depreciation and amortization	399		432
Amortization of acquired intangible assets	274		258
Provision (benefit) for deferred income taxes	(20)		(40)
Premium amortization, net, on available for sale and held to maturity securities	321		351
Other	402		319
Net change in:
Investments segregated and on deposit for regulatory purposes	14,911		(7,403)
Receivables from brokers, dealers, and clearing organizations	(14,814)		(1,855)
Receivables from brokerage clients	(18,222)		2,551
Other assets	(2,099)		(665)
Payables to brokers, dealers, and clearing organizations	18,137		5,247
Payables to brokerage clients	7,627		7,796
Accrued expenses and other liabilities	(783)		(1,688)
Net cash provided by (used for) operating activities	11,642		9,536
Cash Flows from Investing Activities
Purchases of available for sale securities	(10,959)		(1,887)
Proceeds from sales of available for sale securities	6,091		4,205
Principal payments on available for sale securities	4,549		14,893
Purchases of held to maturity securities	(2,336)		(429)
Principal payments on held to maturity securities	6,527		8,047
Net change in bank loans	(9,065)		(5,230)
Cash paid for acquisition, net of cash acquired	(577)		—
Purchases of equipment, office facilities, and property	(325)		(245)
Purchases of FHLB stock	(21)		(317)
Proceeds from sales of FHLB stock	83		644
Purchases of Federal Reserve stock	(2)		(9)
Proceeds from sales of Federal Reserve stock	25		4
Other investing activities	(414)		(130)
Net cash provided by (used for) investing activities	(6,424)		19,546
Cash Flows from Financing Activities
Net change in bank deposits	(6,065)		(26,063)
Proceeds from FHLB borrowings	500		8,000
Repayments of FHLB borrowings	(1,850)		(15,700)
Proceeds from other short-term borrowings	39,612		20,359
Repayments of other short-term borrowings	(32,664)		(17,906)
Issuances of long-term debt	3,231		—
Repayments of long-term debt	(3,114)		(2,237)
Repurchases of common stock and nonvoting common stock	(3,377)		(1,833)
Net proceeds from preferred stock offerings	1,480		—
Redemption of preferred stock	(2,055)		(2,458)
Dividends paid	(1,275)		(1,203)
Proceeds from stock options exercised	58		109
Other financing activities	(158)		(95)
Net cash provided by (used for) financing activities	(5,677)		(39,027)
Increase (Decrease) in Cash and Cash Equivalents, including Amounts Restricted	(459)		(9,945)
Cash and Cash Equivalents, including Amounts Restricted at Beginning of Year	69,661		65,514
Cash and Cash Equivalents, including Amounts Restricted at End of Period	$	69,202	$	55,569

Continued on following page.

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THE CHARLES SCHWAB CORPORATION

Condensed Consolidated Statements of Cash Flows

(in Millions)

(Unaudited)

Continued from previous page.


	Six Months Ended June 30,
	2026		2025
Supplemental Cash Flow Information
Non-cash investing activity:




Changes in accrued equipment, office facilities, and property purchases	$	640	$	47

Non-cash financing activity:

Common stock repurchased during the period but settled after period end	$	—	$	17

Other Supplemental Cash Flow Information:
Cash paid during the year for:
Interest	$	1,841	$	2,497
Income taxes, net	$	1,792	$	818
Amounts included in the measurement of lease liabilities	$	122	$	127
Leased assets obtained in exchange for new operating lease liabilities	$	100	$	55


	June 30, 2026		June 30, 2025
Reconciliation of cash, cash equivalents and amounts reported within the balance sheet (1)
Cash and cash equivalents	$	40,580	$	32,195
Restricted cash and cash equivalents amounts included in cash and investments segregated and on deposit for regulatory purposes	28,622		23,374
Total cash and cash equivalents, including amounts restricted shown in the statement of cash flows	$	69,202	$	55,569

(1) For more information on the nature of restrictions on restricted cash and cash equivalents, see Note 18.

See Notes to Condensed Consolidated Financial Statements.

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THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)

1. Introduction and Basis of Presentation

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.

Principal business subsidiaries of CSC include the following:

Charles Schwab & Co., Inc. (CS&Co), incorporated in 1971, a securities broker-dealer;
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.

These unaudited condensed consolidated financial statements have been prepared in conformity with GAAP, which require management to make certain estimates and assumptions that affect the reported amounts in the accompanying financial statements and in the related disclosures. These estimates are based on information available as of the date of the condensed consolidated financial statements. While management makes its best judgment, actual amounts or results could differ from these estimates. In the opinion of management, all normal, recurring adjustments have been included for a fair statement of this interim financial information.

These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto, included in Schwab’s 2025 Form 10-K.

Significant accounting policies are included in Item 8 – Note 2 in the 2025 Form 10-K. There have been no significant changes to these accounting policies during the first six months of 2026.

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THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)

2. New Accounting Standards

Adoption of New Accounting Standards

The Company did not adopt any material new accounting standards during the six months ended June 30, 2026.

New Accounting Standards Not Yet Adopted


Standard	Description	Required Date of Adoption	Effects on the Financial Statements or Other Significant Matters
Accounting Standards Update (ASU) 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses”	Requires additional disclosures about certain expenses including, but not limited to, employee compensation, depreciation, amortization of intangible assets, and selling expenses. Also requires annual disclosure of how selling expenses are defined. Adoption allows retrospective or prospective application, with early adoption permitted.	January 1, 2027 (applies to the annual financial statements for 2027 and interim periods thereafter)	The Company is evaluating the impact of this guidance on its financial statement disclosures.
ASU 2025-06, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software”	Removes references to prescriptive and sequential software development stages. Requires an entity to begin capitalizing software costs when both of the following occur: 1) management has authorized and committed to funding the software project, and 2) it is probable that the project will be completed and the software will be used to perform the function intended. Adoption allows retrospective, prospective, or modified transition application, with early adoption permitted.	January 1, 2028	The Company is evaluating the impact of this guidance on its financial statements.
ASU 2025-09, “Derivatives and Hedging (Topic 815): Hedge Accounting Improvements”	Clarifies certain aspects of the guidance on hedge accounting and addresses several incremental hedge accounting issues arising from the global reference rate reform. Adoption should be applied on a prospective basis for all hedging relationships and may be elected for hedging relationships that exist as of the date of adoption. Upon adoption, entities will be permitted to modify certain critical terms of certain hedging relationships without dedesignating the hedge.	January 1, 2027	The Company is evaluating the impact of this guidance on its financial statements.

3. Business Acquisition

On March 2, 2026, the Company completed its acquisition of Forge Global Holdings, Inc. (Forge) for $636 million of cash and other consideration. Forge provides eligible investors with direct and indirect access to shares of private companies through direct share purchase, single company funds, and multicompany funds. The Company anticipates that incorporating Forge’s private company investment capabilities will enhance Schwab’s ability to meet the evolving needs of investors across our growing client base.

The Company accounted for the Forge acquisition as a business combination under GAAP and accordingly, the purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair values as of the date of acquisition. The determination of fair values requires management to make significant estimates and assumptions. The Company believes that the information available provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed, and consideration transferred; however, due to the timing of and limited time since the close of the acquisition, these estimates are provisional and may be adjusted upon the availability of new information regarding facts and circumstances which existed at the acquisition date. Any adjustments to the initial estimates of the fair values of the acquired assets and liabilities assumed will be recorded as adjustments to the respective assets and liabilities, with the residual amounts allocated to goodwill, in subsequent periods as prescribed in Accounting Standards Codification (ASC) 805 Business Combinations. During the three months ended June 30, 2026, we made measurement period adjustments to the purchase price allocation resulting in additions of $10 million, $4 million, and $6 million to our initial estimates of the fair value of acquired intangible assets, other

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THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)

assets, and accrued expenses and other liabilities, respectively, and a reduction of $8 million to our initial estimate of the fair value of goodwill.

The following table summarizes provisional information including the consideration transferred, fair value estimates of the assets acquired and liabilities assumed, and resulting goodwill as of the March 2, 2026 acquisition date, adjusted for the measurement period adjustments described above:


Fair value of assets acquired:
Cash and cash equivalents	$	39
Acquired intangible assets	320
Other assets	46
Total assets acquired	405
Fair value of liabilities assumed:
Accrued expenses and other liabilities	92

Total liabilities assumed	92
Fair value of net identifiable assets acquired	$	313

Consideration transferred	$	636
Plus: Fair value of noncontrolling interest acquired (1)	16
Less: Fair value of net identifiable assets acquired	(313)
Goodwill	$	339

(1) Subsequent to the acquisition date, Schwab purchased the equity interest attributable to the noncontrolling party resulting in the subsidiary becoming 100%-owned by Schwab as of March 31, 2026.

The provisional identifiable intangible assets of $320 million are subject to amortization. The following table summarizes the major classes of intangible assets acquired and their respective estimated fair values and weighted-average useful lives:


	Method Used to Estimate Fair Value	Fair Value		Weighted-Average Useful Life (Years)
Client relationships	Income Approach	$	215	9
Existing technology	Replacement Cost Approach	82		3
Data and trade names	Income Approach	23		6

Total acquired intangible assets		$	320

Goodwill recorded of $339 million, primarily attributable to the expanded product offerings and capabilities anticipated from the Forge acquisition, was assigned to the Investor Services segment and is not deductible for tax purposes.

The Company’s condensed consolidated statements of income include total net revenues and net loss attributable to the Forge acquisition of $40 million and $33 million, respectively, for the three months ended June 30, 2026 and $54 million and $39 million, respectively, for the period March 2, 2026 through June 30, 2026.

Certain Forge equity awards, whether vested or unvested, were assumed by the Company upon acquisition. The awards are subject to the same terms and conditions that were applicable immediately before the acquisition, except for performance-based restricted stock units which were converted into restricted stock units without performance conditions. The portion of the fair value of the replacement awards related to services provided prior to the acquisition of $13 million was accounted for as consideration transferred. The remaining portion was associated with future services and had a fair value of $37 million on the acquisition date. As of June 30, 2026, there was $14 million of unrecognized compensation cost related to these awards.

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THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)

4. Revenue Recognition

Disaggregation of Schwab’s revenue by major source is as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Net interest revenue
Cash and cash equivalents	$	278	$	305	$	566	$	633
Cash and investments segregated	374		506		771		918
Receivables from brokerage clients (1)	1,609		1,321		3,108		2,700
Available for sale securities	358		405		684		838
Held to maturity securities	570		602		1,137		1,224
Bank loans	693		518		1,320		1,011
Securities lending revenue	178		96		269		156
Other interest revenue (1,2)	86		34		253		64
Interest revenue	4,146		3,787		8,108		7,544
Bank deposits	(114)		(326)		(232)		(762)
Payables to brokers, dealers, and clearing organizations	(276)		(167)		(493)		(304)
Payables to brokerage clients (1)	(59)		(60)		(115)		(109)
Other short-term borrowings	(111)		(87)		(203)		(169)
Federal Home Loan Bank borrowings	(1)		(110)		(13)		(243)
Long-term debt	(228)		(206)		(429)		(418)

Other interest expense (1,2)	—		(9)		(122)		(11)
Interest expense	(789)		(965)		(1,607)		(2,016)
Net interest revenue	3,357		2,822		6,501		5,528
Asset management and administration fees
Mutual funds, ETFs, CTFs, and alternatives (3)	1,020		898		2,011		1,776
Managed investing solutions	707		589		1,381		1,158
Other (3)	98		83		192		166
Asset management and administration fees	1,825		1,570		3,584		3,100
Trading revenue
Commissions	528		431		1,017		862
Order flow revenue	624		466		1,184		909
Principal transactions	63		55		103		89
Trading revenue	1,215		952		2,304		1,860
Bank deposit account fees	333		247		628		492
Other	342		260		537		470

Total net revenues	$	7,072	$	5,851	$	13,554	$	11,450

(1) Beginning in the fourth quarter of 2025, interest revenue and expense from client margin loans and short credits related to client long/short strategies from which the Company earns a fixed net yield were moved from receivables from brokerage clients and payables to brokerage clients, respectively, to other interest revenue and other interest expense, respectively. Amounts for 2025 periods have been reclassified to reflect this change.

(2) Beginning in the second quarter of 2026, the net fixed yield earned on client long/short strategies is presented in other interest revenue; amounts for periods prior to the three months ended June 30, 2026 have not been recast as the impact of this change was not material.

(3) Beginning in the first quarter of 2026, alternative investments revenue was moved from other asset management and administration fees to mutual funds, ETFs, CTFs, and alternatives. Prior period amounts have been reclassified to reflect this change.

For a summary of revenue provided by our reportable segments, see Note 19. The recognition of revenue is not impacted by the operating segment in which revenue is generated.

Contract balances: Receivables from contracts with customers within the scope of ASC 606 Revenue From Contracts With Customers (ASC 606), are included in other assets on the condensed consolidated balance sheets, and totaled $928 million and $819 million at June 30, 2026 and December 31, 2025, respectively.

The Company had net contract assets of $182 million and $193 million at June 30, 2026 and December 31, 2025, respectively, related to the buy down of fixed-rate obligation amounts pursuant to the 2023 IDA agreement. These amounts are included in other assets on the condensed consolidated balance sheets and are amortized on a straight-line basis over the remaining

- 39 -

THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)

contractual term as a reduction to bank deposit account fee revenue. For additional discussion of the 2023 IDA agreement, see Note 11.

Unsatisfied performance obligations: We do not have any unsatisfied performance obligations other than those that are subject to an elective practical expedient under ASC 606. The practical expedient applies to and is elected for contracts where we recognize revenue at the amount to which we have the right to invoice for services performed.

5. Receivables from and Payables to Brokers, Dealers, and Clearing Organizations

Receivables from and payables to brokers, dealers, and clearing organizations are as follows:


	June 30, 2026		December 31, 2025
Receivables
Securities borrowed	$	19,027	$	4,797
Receivables from clearing organizations	2,855		2,327
Receivables for securities failed to deliver	94		42
Other receivables from broker-dealers	28		24
Receivables from brokers, dealers, and clearing organizations	$	22,004	$	7,190
Payables
Deposits for securities loaned	$	38,659	$	25,131
Broker-dealer repurchase agreements	3,500		50
Payables to clearing organizations	701		115
Other payables to broker-dealers	690		302
Payables for securities failed to receive	276		91
Payables to brokers, dealers, and clearing organizations	$	43,826	$	25,689

See Note 13 for additional information regarding securities lending and borrowing activities, and repurchase agreements.

- 40 -

THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)

6. Investment Securities

The amortized cost, gross unrealized gains and losses, and fair value of the Company’s AFS and HTM investment securities are as follows:


June 30, 2026	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale securities
U.S. agency mortgage-backed securities	$	40,938	$	—	$	3,197	$	37,741
U.S. Treasury securities	12,097		—		146		11,951
Corporate debt securities (1)	5,346		—		329		5,017
Asset-backed securities (2)	7,335		1		132		7,204
U.S. state and municipal securities	459		—		35		424

Non-agency commercial mortgage-backed securities	120		—		8		112


Other	21		—		3		18
Unallocated portfolio layer method (PLM) fair value basis adjustments (3)	(4)		—		(4)		—
Total available for sale securities (4)	$	66,312	$	1	$	3,846	$	62,467
Held to maturity securities
U.S. agency mortgage-backed securities	$	128,551	$	631	$	9,962	$	119,220




U.S. Treasury securities	2,017		—		31		1,986




Total held to maturity securities	$	130,568	$	631	$	9,993	$	121,206

December 31, 2025
Available for sale securities
U.S. agency mortgage-backed securities	$	44,585	$	—	$	3,151	$	41,434
U.S. Treasury securities	11,543		3		182		11,364
Corporate debt securities (1)	5,027		—		360		4,667
Asset-backed securities (2)	4,332		—		133		4,199
U.S. state and municipal securities	595		—		34		561


Non-agency commercial mortgage-backed securities	120		—		7		113


Other	21		—		2		19
Unallocated PLM fair value basis adjustments (3)	2		—		2		—
Total available for sale securities (4)	$	66,225	$	3	$	3,871	$	62,357
Held to maturity securities
U.S. agency mortgage-backed securities	$	133,563	$	1,732	$	9,646	$	125,649
U.S. Treasury securities	406		—		—		406
Total held to maturity securities	$	133,969	$	1,732	$	9,646	$	126,055

(1) As of June 30, 2026, approximately 28%, 25%, and 20% of total AFS corporate debt securities were issued by institutions in the information technology, consumer staples, and healthcare industries, respectively. As of December 31, 2025, approximately 28%, 27%, and 19% of total AFS corporate debt securities were issued by institutions in the information technology, consumer staples, and healthcare industries, respectively.

(2) As of June 30, 2026, approximately 38% and 33% of total AFS asset-backed securities were collateralized by Federal Family Education Loan Program asset-backed securities and credit card receivables, respectively. As of December 31, 2025, approximately 70% and 21% of total AFS asset-backed securities were collateralized by Federal Family Education Loan Program asset-backed securities and credit card receivables, respectively.

(3) This represents the amount of PLM fair value hedge basis adjustments related to AFS securities hedged in a closed portfolio. See Note 12 for more information on PLM hedge accounting.

(4) Included in cash and cash equivalents on the condensed consolidated balance sheets, but excluded from this table, is $2.0 billion of AFS U.S. Treasury securities as of December 31, 2025 (none as of June 30, 2026). These holdings had maturities of three months or less at the time of acquisition, and an aggregate market value equal to amortized cost.

At June 30, 2026, our banking subsidiaries had pledged investment securities with a fair value of $12.7 billion (collateral value of $11.8 billion) as collateral to secure borrowing capacity on secured credit facilities with the FHLB (see Note 10). Our banking subsidiaries also pledge investment securities as collateral to secure borrowing capacity at the Federal Reserve discount window, and had pledged securities with a fair value of $28.9 billion (collateral value of $28.0 billion) as collateral for this facility at June 30, 2026. The Company also pledges investment securities issued by federal agencies to secure certain trust deposits. The fair value and collateral value of these pledged securities was $1.6 billion at June 30, 2026.

- 41 -

THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)

At June 30, 2026, our banking subsidiaries had pledged HTM securities as collateral under repurchase agreements with external financial institutions and the FICC. HTM securities pledged were U.S. agency mortgage-backed securities with an aggregate amortized cost of $4.4 billion, of which $3.9 billion may be sold, repledged, or otherwise used by the counterparties. See Notes 10 and 13 for additional information on these repurchase agreements.

At June 30, 2026, the Company had pledged AFS securities consisting of U.S. Treasury securities with an aggregate fair value of $760 million as initial margin on interest rate swaps (see Notes 12 and 13). All of Schwab’s interest rate swaps are cleared through central counterparty (CCP) clearing houses which require the Company to post initial margin as collateral against potential losses. Initial margin is posted through futures commission merchants (FCM) which serve as the intermediary between the CCPs and Schwab. The FCM agreements governing our swaps allow for securities pledged as initial margin to be sold, repledged, or otherwise used by the FCM.

AFS investment securities with unrealized losses, aggregated by category and period of continuous unrealized loss, are as follows:


	Less than 12 months				12 months or longer				Total
June 30, 2026	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available for sale securities
U.S. agency mortgage-backed securities	$	82	$	1	$	37,618	$	3,196	$	37,700	$	3,197
U.S. Treasury securities	8,964		26		2,621		120		11,585		146
Corporate debt securities	405		2		4,591		327		4,996		329
Asset-backed securities	2,787		11		3,640		121		6,427		132
U.S. state and municipal securities (1)	25		—		399		35		424		35

Non-agency commercial mortgage-backed securities	—		—		112		8		112		8


Other	—		—		18		3		18		3
Total (2)	$	12,263	$	40	$	48,999	$	3,810	$	61,262	$	3,850


December 31, 2025
Available for sale securities
U.S. agency mortgage-backed securities (1)	$	4	$	—	$	41,394	$	3,151	$	41,398	$	3,151
U.S. Treasury securities (1)	1,558		—		5,424		182		6,982		182
Corporate debt securities	—		—		4,667		360		4,667		360
Asset-backed securities (1)	147		—		4,046		133		4,193		133

U.S. state and municipal securities	27		2		534		32		561		34

Non-agency commercial mortgage-backed securities	—		—		113		7		113		7
Other	—		—		19		2		19		2
Total (2)	$	1,736	$	2	$	56,197	$	3,867	$	57,933	$	3,869

(1) Amounts of unrealized losses less than 12 months were less than $500 thousand.

(2) For purposes of this table, unrealized losses on AFS securities excludes the unallocated PLM fair value hedge basis adjustments of $(4) million and $2 million at June 30, 2026 and December 31, 2025, respectively.

At June 30, 2026, substantially all rated securities in the investment portfolios were investment grade. U.S. agency mortgage-backed securities do not have explicit credit ratings; however, management considers these to be of the highest credit quality and rating given the guarantee of principal and interest by the U.S. government or U.S. government-sponsored enterprises.

For a description of management’s quarterly evaluation of AFS securities in unrealized loss positions, see Item 8 – Note 2 in the 2025 Form 10-K. No amounts were recognized as credit loss expense and no securities were written down to fair value through earnings for the six months ended June 30, 2026 and the year ended December 31, 2025. None of the Company’s AFS securities held as of June 30, 2026 and December 31, 2025 had an allowance for credit losses. HTM securities as of June 30, 2026 and December 31, 2025 were U.S. agency mortgage-backed securities and U.S. Treasury securities and therefore had no allowance for credit losses because expected nonpayment of the amortized cost basis is zero.

- 42 -

THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)

The Company had $381 million and $386 million of accrued interest for AFS and HTM securities as of June 30, 2026 and December 31, 2025, respectively. These amounts are excluded from the amortized cost basis and fair market value of AFS and HTM securities and included in other assets on the condensed consolidated balance sheets. There were no writeoffs of accrued interest receivable on AFS and HTM securities during the six months ended June 30, 2026, or for the year ended December 31, 2025.

The following table presents the Company’s estimated effective duration, which reflects anticipated future payments, by category at June 30, 2026:


			In years
Estimated effective duration, exclusive of derivatives:
AFS investment securities portfolio			2.3
AFS and HTM investment securities portfolios			3.6
Estimated effective duration, inclusive of derivatives (1):
AFS investment securities portfolio			1.9
AFS and HTM investment securities portfolios			3.5

(1) See Note 12 for additional discussion of the Company’s derivatives.

In the table below, mortgage-backed securities and other asset-backed securities have been allocated to maturity groupings based on final contractual maturities. As borrowers may have the right to call or prepay certain obligations underlying our investment securities, actual maturities may differ from the scheduled contractual maturities presented below.

The maturities of AFS and HTM investment securities are as follows:


June 30, 2026	Within 1 year		After 1 year through 5 years		After 5 years through 10 years		After 10 years		Total
Available for sale securities
U.S. agency mortgage-backed securities	$	1,124	$	6,756	$	23,687	$	6,174	$	37,741
U.S. Treasury securities	4,092		7,859		—		—		11,951
Corporate debt securities	1,064		3,953		—		—		5,017
Asset-backed securities	—		3,774		955		2,475		7,204
U.S. state and municipal securities	27		206		191		—		424

Non-agency commercial mortgage-backed securities	—		—		—		112		112


Other	—		—		—		18		18
Total fair value	$	6,307	$	22,548	$	24,833	$	8,779	$	62,467
Total amortized cost (1)	$	6,333	$	23,504	$	27,410	$	9,069	$	66,316

Held to maturity securities
U.S. agency mortgage-backed securities	$	626	$	27,980	$	24,460	$	66,154	$	119,220





U.S. Treasury securities	—		1,986		—		—		1,986



Total fair value	$	626	$	29,966	$	24,460	$	66,154	$	121,206
Total amortized cost	$	628	$	30,952	$	25,206	$	73,782	$	130,568

(1) For purposes of this table, the amortized cost of AFS securities excludes the unallocated PLM fair value hedge basis adjustments of $(4) million at June 30, 2026.

Proceeds and gross realized gains and losses from sales of AFS investment securities are as follows:


	Three Months Ended June 30,				Six Months Ended June 30,

	2026		2025		2026		2025
Proceeds	$	4,550	$	2,584	$	6,091	$	4,205
Gross realized gains	—		—		1		—
Gross realized losses	25		30		26		40

- 43 -

THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)

7. Bank Loans and Related Allowance for Credit Losses

The composition of bank loans and delinquency analysis by portfolio segment and class of financing receivable is as follows:


June 30, 2026	Current		30-59 days past due		60-89 days past due		>90 days past due and other nonaccrual loans (3)		Total past due and other nonaccrual loans		Total loans		Allowance for credit losses		Total bank loans — net
Residential real estate:
First Mortgages (1,2)	$	32,655	$	111	$	2	$	14	$	127	$	32,782	$	30	$	32,752
HELOCs (1,2)	420		1		—		2		3		423		1		422
Total residential real estate	33,075		112		2		16		130		33,205		31		33,174
Pledged asset lines	33,396		10		—		10		20		33,416		—		33,416
Other	411		1		—		—		1		412		6		406
Total bank loans	$	66,882	$	123	$	2	$	26	$	151	$	67,033	$	37	$	66,996

December 31, 2025
Residential real estate:
First Mortgages (1,2)	$	30,429	$	13	$	5	$	37	$	55	$	30,484	$	28	$	30,456
HELOCs (1,2)	423		1		—		3		4		427		1		426
Total residential real estate	30,852		14		5		40		59		30,911		29		30,882
Pledged asset lines	26,570		20		10		3		33		26,603		—		26,603
Other	477		—		—		—		—		477		7		470
Total bank loans	$	57,899	$	34	$	15	$	43	$	92	$	57,991	$	36	$	57,955

(1) First Mortgages and HELOCs include unamortized premiums and discounts and direct origination costs of $144 million and $131 million at June 30, 2026 and December 31, 2025, respectively.

(2) At June 30, 2026 and December 31, 2025, 40% and 41%, respectively, of the First Mortgage and HELOC portfolios were concentrated in California. These loans have performed in a manner consistent with the portfolio as a whole.

(3) There were no loans accruing interest that were contractually 90 days or more past due at June 30, 2026 or December 31, 2025. Bank-loan related nonperforming assets consisted of the nonaccrual loans presented here and loan modifications to borrowers experiencing financial difficulty were not material at both June 30, 2026 and December 31, 2025.

At June 30, 2026, CSB had pledged the full balance of First Mortgages and HELOCs pursuant to a blanket lien status collateral arrangement to secure borrowing capacity on a secured credit facility with the FHLB (see Note 10).

- 44 -

THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)

Changes in the allowance for credit losses on bank loans were as follows:


	First Mortgages		HELOCs		Total residential real estate		Pledged asset lines		Other		Total
Balance at March 31, 2025	$	14	$	1	$	15	$	—	$	6	$	21
Charge-offs	—		—		—		—		—		—
Recoveries	—		—		—		—		—		—
Provision for credit losses	1		—		1		—		—		1
Balance at June 30, 2025	$	15	$	1	$	16	$	—	$	6	$	22

Balance at March 31, 2026	$	29	$	1	$	30	$	—	$	6	$	36
Charge-offs	—		—		—		—		—		—
Recoveries	—		—		—		—		—		—
Provision for credit losses	1		—		1		—		—		1
Balance at June 30, 2026	$	30	$	1	$	31	$	—	$	6	$	37

Balance at December 31, 2024	$	14	$	1	$	15	$	—	$	6	$	21
Charge-offs	—		—		—		—		—		—
Recoveries	—		—		—		—		—		—
Provision for credit losses	1		—		1		—		—		1
Balance at June 30, 2025	$	15	$	1	$	16	$	—	$	6	$	22

Balance at December 31, 2025	$	28	$	1	$	29	$	—	$	7	$	36
Charge-offs	—		—		—		—		—		—
Recoveries	—		—		—		—		—		—
Provision for credit losses	2		—		2		—		(1)		1
Balance at June 30, 2026	$	30	$	1	$	31	$	—	$	6	$	37

Consistent with Schwab’s loan charge-off policy for PALs as disclosed in Item 8 – Note 2 of the 2025 Form 10-K, the Company charges off any unsecured balances no later than 90 days past due. As of June 30, 2026, substantially all PALs are also subject to the collateral maintenance practical expedient under ASC 326 Financial Instruments — Credit Losses. All PALs were fully collateralized by securities with fair values in excess of borrowings as of June 30, 2026 and December 31, 2025, and no allowance for credit losses for PALs as of those dates was required.

The U.S. economy experienced soft hiring and elevated core inflation at the end of the second quarter of 2026. Geopolitical unrest persists amid a backdrop of elevated uncertainty due to economic impacts of developing trade policy and a constrained energy supply. Management’s macroeconomic outlook reflects sustained current benchmark lending rates, with a softening labor market. Though higher mortgage rates are easing demand and reducing borrower affordability, we expect constrained housing supply to keep home prices relatively stable. Furthermore, credit quality metrics in the Company’s bank loans portfolio remain strong. As a result of these factors, we held projected loss rates constant at June 30, 2026, as compared to December 31, 2025.

Credit Quality

In addition to monitoring delinquency, Schwab monitors the credit quality of First Mortgages and HELOCs by stratifying the portfolios by the following:

Year of origination;
Borrower Fair Isaac Corporation (FICO) scores at origination (Origination FICO);
Refreshed borrower FICO scores (Refreshed FICO);
Loan-to-value (LTV) ratios at origination (Origination LTV); and
Estimated Refreshed LTV ratios (Estimated Refreshed LTV).

Borrowers’ FICO scores are provided by an independent third-party credit reporting service and are generally updated quarterly. The Origination LTV and Estimated Refreshed LTV for a HELOC include any first lien mortgage outstanding on the same property at the time of the HELOC’s origination. The Estimated Refreshed LTV for each loan is updated on a monthly basis by reference to a home price appreciation index.

- 45 -

THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)

The credit quality indicators of the Company’s First Mortgages and HELOCs are detailed below:


	First Mortgages Amortized Cost Basis by Origination Year
June 30, 2026	2026			2025			2024			2023			2022			pre-2022			Total First Mortgages			Revolving HELOCs amortized cost basis		HELOCs converted to term loans			Total HELOCs
Origination FICO
<620	$	1		$	—		$	1		$	—		$	2		$	2		$	6		$	—	$	—		$	—
620 – 679	30			18			12			3			22			44			129			2		1			3
680 – 739	362			496			242			194			639			1,424			3,357			51		23			74
≥740	4,068			4,945			2,139			1,389			4,370			12,379			29,290			265		81			346
Total	$	4,461		$	5,459		$	2,394		$	1,586		$	5,033		$	13,849		$	32,782		$	318	$	105		$	423
Origination LTV
≤70%	$	3,166		$	3,715		$	1,615		$	1,082		$	3,747		$	11,853		$	25,178		$	304	$	74		$	378
>70% – ≤90%	1,295			1,744			779			504			1,286			1,995			7,603			14		30			44
>90% – ≤100%	—			—			—			—			—			1			1			—		1			1
Total	$	4,461		$	5,459		$	2,394		$	1,586		$	5,033		$	13,849		$	32,782		$	318	$	105		$	423
Refreshed FICO
<620	$	1		$	5		$	3		$	5		$	24		$	42		$	80		$	2	$	4		$	6
620 – 679	32			58			22			25			61			167			365			9		7			16
680 – 739	384			475			216			142			453			1,091			2,761			43		15			58
≥740	4,044			4,921			2,153			1,414			4,495			12,549			29,576			264		79			343
Total	$	4,461		$	5,459		$	2,394		$	1,586		$	5,033		$	13,849		$	32,782		$	318	$	105		$	423
Estimated Refreshed LTV (1)
≤70%	$	3,167		$	3,855		$	1,825		$	1,380		$	4,652		$	13,783		$	28,662		$	316	$	105		$	421
>70% – ≤90%	1,294			1,601			566			201			352			64			4,078			2		—			2
>90% – ≤100%	—			3			3			5			29			2			42			—		—			—

Total	$	4,461		$	5,459		$	2,394		$	1,586		$	5,033		$	13,849		$	32,782		$	318	$	105		$	423
Gross charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—	$	—		$	—
Percent of Loans on Nonaccrual Status	0.01		%	0.01		%	0.10		%	0.01		%	0.06		%	0.05		%	0.04		%	—		2.12		%	0.47		%

(1) Represents the LTV for the full line of credit (drawn and undrawn) for revolving HELOCs.

- 46 -

THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)


	First Mortgages Amortized Cost Basis by Origination Year
December 31, 2025	2025			2024			2023			2022			pre-2022			Total First Mortgages			Revolving HELOCs amortized cost basis			HELOCs converted to term loans			Total HELOCs
Origination FICO
<620	$	—		$	1		$	—		$	3		$	2		$	6		$	—		$	—		$	—
620 – 679	23			16			4			23			49			115			—			1			1
680 – 739	526			272			219			667			1,508			3,192			52			24			76
≥740	5,480			2,534			1,573			4,546			13,038			27,171			260			90			350
Total	$	6,029		$	2,823		$	1,796		$	5,239		$	14,597		$	30,484		$	312		$	115		$	427
Origination LTV
≤70%	$	4,105		$	1,925		$	1,216		$	3,891		$	12,473		$	23,610		$	296		$	80		$	376
>70% – ≤90%	1,924			898			580			1,348			2,123			6,873			16			34			50
>90% – ≤100%	—			—			—			—			1			1			—			1			1
Total	$	6,029		$	2,823		$	1,796		$	5,239		$	14,597		$	30,484		$	312		$	115		$	427
Refreshed FICO
<620	$	8		$	4		$	3		$	36		$	55		$	106		$	3		$	3		$	6
620 – 679	59			31			25			61			140			316			5			6			11
680 – 739	570			227			153			483			1,157			2,590			48			20			68
≥740	5,392			2,561			1,615			4,659			13,245			27,472			256			86			342
Total	$	6,029		$	2,823		$	1,796		$	5,239		$	14,597		$	30,484		$	312		$	115		$	427
Estimated Refreshed LTV (1)
≤70%	$	3,877		$	1,989		$	1,450		$	4,696		$	14,483		$	26,495		$	310		$	115		$	425
>70% – ≤90%	2,148			829			342			537			114			3,970			2			—			2
>90% – ≤100%	4			5			4			6			—			19			—			—			—

Total	$	6,029		$	2,823		$	1,796		$	5,239		$	14,597		$	30,484		$	312		$	115		$	427
Gross charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Percent of Loans on Nonaccrual Status	0.01		%	0.01		%	0.11		%	0.10		%	0.20		%	0.12		%	0.16		%	1.80		%	0.70		%

(1) Represents the LTV for the full line of credit (drawn and undrawn) for revolving HELOCs.

At June 30, 2026, $28.5 billion of First Mortgage loans had adjustable interest rates. Substantially all of these mortgages have initial fixed interest rates for three to ten years and interest rates that typically adjust every six to twelve months pursuant to the terms of the loan thereafter. Approximately 22% of the balance of these mortgages consisted of loans with interest-only payment terms. The interest rates on approximately 62% of the balance of these interest-only loans are not scheduled to reset for three or more years.

At June 30, 2026 and December 31, 2025, Schwab had $255 million and $223 million, respectively, of accrued interest on bank loans, which is excluded from the amortized cost basis of bank loans and included in other assets on the condensed consolidated balance sheets.

The HELOC product has a 30-year loan term with an initial draw period of ten years from the date of origination. After the initial draw period, the balance outstanding at such time is converted to a 20-year amortizing loan. The interest rate during the initial draw period and the 20-year amortizing period is a floating-rate based on the prime rate plus a margin.

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THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)

The following table presents when current outstanding HELOCs will convert to amortizing loans:


June 30, 2026	Balance
Converted to an amortizing loan by period end (1)	$	105
Within 1 year	18
> 1 year – 3 years	31
> 3 years – 5 years	63
> 5 years	206
Total	$	423

(1) Includes $2 million and $5 million of HELOCs converted to amortizing loans during the three and six months ended June 30, 2026, respectively.

At June 30, 2026, $324 million of the HELOC portfolio was secured by second liens on the associated properties. Second lien mortgage loans typically possess a higher degree of credit risk given the subordination to the first lien holder in the event of default. In addition to the credit monitoring activities described previously, Schwab also monitors credit risk by reviewing the delinquency status of the first lien loan on the associated property. At June 30, 2026, the borrowers on approximately 61% of HELOC loan balances outstanding only paid the minimum amount due.

8. Variable Interest Entities

As of June 30, 2026 and December 31, 2025, substantially all of Schwab’s involvement with variable interest entities (VIEs) is through CSB’s Community Reinvestment Act (CRA) related investments and most of these are related to Low-Income Housing Tax Credit (LIHTC) investments. As part of CSB’s community reinvestment initiatives, CSB invests in funds that make equity investments in multifamily affordable housing properties and receives tax credits and other tax benefits for these investments. During the three months ended June 30, 2026 and 2025, CSB recorded amortization of $68 million and $47 million, respectively, and recognized tax credits and other tax benefits of $89 million and $65 million, respectively, associated with these investments. During the six months ended June 30, 2026 and 2025, CSB recorded amortization of $127 million and $94 million, respectively, and recognized tax credits and other tax benefits of $166 million and $126 million, respectively, associated with these investments. The amortization, as well as the tax credits and other tax benefits, are included in taxes on income on the condensed consolidated statements of income. Tax credits and other tax benefits are reflected as cash flows from operating activities on the condensed consolidated statements of cash flows.

Aggregate assets, aggregate liabilities, and maximum exposure to loss

The aggregate assets, aggregate liabilities, and maximum exposure to loss from those VIEs in which Schwab holds a variable interest, but is not the primary beneficiary, are summarized in the table below:


	June 30, 2026						December 31, 2025
	Aggregate assets		Aggregate liabilities		Maximum exposure to loss		Aggregate assets		Aggregate liabilities		Maximum exposure to loss
LIHTC investments (1)	$	2,446	$	1,360	$	2,446	$	2,084	$	1,111	$	2,084
Other investments (2)	249		—		352		250		—		342
Total	$	2,695	$	1,360	$	2,798	$	2,334	$	1,111	$	2,426

(1) Aggregate assets and aggregate liabilities are included in other assets and accrued expenses and other liabilities, respectively, on the condensed consolidated balance sheets.

(2) Other investments include non-LIHTC CRA investments that are accounted for as loans at amortized cost, equity method investments, AFS securities, or using the adjusted cost method. Aggregate assets are included in AFS securities, bank loans — net, or other assets on the condensed consolidated balance sheets.

Schwab’s maximum exposure to loss would result from the loss of the investments, including any committed amounts. Schwab’s funding of these remaining commitments is dependent upon the occurrence of certain conditions, and Schwab expects to pay substantially all of these commitments between 2026 and 2029. During the six months ended June 30, 2026 and year ended December 31, 2025, Schwab did not provide or intend to provide financial or other support to the VIEs that it was not contractually required to provide.

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THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)

9. Bank Deposits

Bank deposits consist of interest-bearing and non-interest-bearing deposits as follows:


	June 30, 2026		December 31, 2025
Interest-bearing deposits:
Deposits swept from brokerage accounts	$	228,347	$	232,410
Checking	16,008		16,473
Time certificates of deposit (1)	283		2,000
Savings and other	3,545		3,637
Total interest-bearing deposits	248,183		254,520
Non-interest-bearing deposits	1,499		1,227
Total bank deposits	$	249,682	$	255,747

(1) Time certificates of deposit consist of brokered CDs. The weighted-average interest rates on outstanding time certificates of deposit at June 30, 2026 and December 31, 2025 were 3.90% and 4.03%, respectively. As of June 30, 2026 and December 31, 2025, there were no time deposits that were in excess of FDIC insurance limits or otherwise uninsured.

Time certificates of deposit outstanding at June 30, 2026 mature in July 2026.

10. Borrowings

CSC Senior Notes: CSC’s Senior Notes are unsecured obligations. CSC may redeem some or all of the Senior Notes of each series prior to their maturity, subject to certain restrictions, and the payment of an applicable make-whole premium in certain instances. Interest is payable semi-annually for the fixed-rate Senior Notes and quarterly for the floating-rate Senior Notes. Interest for the fixed-to-floating rate Senior Notes is payable semi-annually during the fixed-rate period of the notes and quarterly during the floating-rate period of the notes.

Ameritrade Holding LLC Senior Notes: Ameritrade Holding LLC’s Senior Notes are unsecured obligations. Ameritrade Holding LLC may redeem some or all of the Senior Notes of each series prior to their maturity, subject to certain restrictions, and the payment of an applicable make-whole premium in certain instances. Interest is payable semi-annually for the fixed-rate Senior Notes.

Other Finance Liabilities: CS&Co entered into a third-party long-term software licensing agreement during the second quarter of 2026 for $633 million. In accordance with ASC 350 Intangibles — Goodwill and Other, CS&Co recorded the multi-year software license as an asset within equipment, office facilities, and property — net, and the corresponding liability as long-term debt on the consolidated balance sheets. An initial debt payment of $49 million was made during the second quarter of 2026, and future payments are due annually through March 2033.

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THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)

The following table lists long-term debt by instrument outstanding as of June 30, 2026 and December 31, 2025:


	Date of Issuance	Principal Amount Outstanding
	June 30, 2026	December 31, 2025
CSC Fixed-rate Senior Notes:










3.450% due February 13, 2026	11/13/15	$	—	$	350
0.900% due March 11, 2026	12/11/20	—		1,250
1.150% due May 13, 2026	05/13/21	—		1,000
5.875% due August 24, 2026	08/24/23	1,000		1,000
3.200% due March 2, 2027	03/02/17	650		650
2.450% due March 3, 2027	03/03/22	1,500		1,500
3.300% due April 1, 2027	09/24/21	744		744
3.200% due January 25, 2028	12/07/17	700		700
2.000% due March 20, 2028	03/18/21	1,250		1,250
4.000% due February 1, 2029	10/31/18	600		600
3.250% due May 22, 2029	05/22/19	600		600
2.750% due October 1, 2029	09/24/21	475		475
4.625% due March 22, 2030	03/24/20	500		500
1.650% due March 11, 2031	12/11/20	750		750
2.300% due May 13, 2031	05/13/21	750		750
1.950% due December 1, 2031	08/26/21	850		850
2.900% due March 3, 2032	03/03/22	1,000		1,000
CSC Floating-rate Senior Notes:


SOFR + 0.520% due May 13, 2026	05/13/21	—		500
SOFR + 1.050% due March 3, 2027	03/03/22	500		500
CSC Fixed-to-Floating rate Senior Notes (1):
5.643% due May 19, 2029	05/19/23	1,200		1,200
4.603% due July 27, 2029	06/25/26	1,000		—
6.196% due November 17, 2029	11/17/23	1,300		1,300
4.744% due May 21, 2030	05/21/26	1,000		—
4.343% due November 14, 2031	11/14/25	1,000		1,000
5.853% due May 19, 2034	05/19/23	1,300		1,300
6.136% due August 24, 2034	08/24/23	1,350		1,350
4.914% due November 14, 2036	11/14/25	1,000		1,000
5.493% due May 21, 2037	05/21/26	1,250		—
Total CSC Senior Notes		22,269		22,119
Ameritrade Holding LLC Fixed-rate Senior Notes:



3.300% due April 1, 2027	04/27/17	56		56
2.750% due October 1, 2029	08/16/19	25		25


Total Ameritrade Holding LLC Senior Notes		81		81
Finance lease liabilities		23		37
Other finance liabilities (2)		592		—
Unamortized premium — net		24		33
Debt issuance costs		(89)		(82)
Fair value hedging basis adjustments (3)		(231)		11
Total long-term debt		$	22,669	$	22,199

(1) Interest rates presented are those in effect at June 30, 2026. See table below for additional information regarding future interest rates on fixed-to-floating rate Senior Notes.

(2) This represents the total liability, including imputed interest, related to a software licensing agreement entered into during the second quarter of 2026.

(3) This represents the amount of fair value hedge basis adjustments related to Senior Notes hedged. See Note 12 for more information on hedging of Senior Notes.

- 50 -

THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)

The following table details the changes in future interest rates on fixed-to-floating rate Senior Notes as of June 30, 2026:


Maturity Date	Fixed Semi-annual Interest Rate	Date of Issuance	Floating Quarterly Interest Rate	Interest Rate Reset Date
May 19, 2029	5.643%	05/19/23	SOFR + 2.210%	05/19/28
July 27, 2029	4.603%	06/25/26	SOFR + 0.622%	07/27/28
November 17, 2029	6.196%	11/17/23	SOFR + 1.878%	11/17/28
May 21, 2030	4.744%	05/21/26	SOFR + 0.780%	05/21/29
November 14, 2031	4.343%	11/14/25	SOFR + 0.940%	11/14/30
May 19, 2034	5.853%	05/19/23	SOFR + 2.500%	05/19/33
August 24, 2034	6.136%	08/24/23	SOFR + 2.010%	08/24/33
November 14, 2036	4.914%	11/14/25	SOFR + 1.230%	11/14/35
May 21, 2037	5.493%	05/21/26	SOFR+ 1.280%	05/21/36

Annual maturities on all long-term debt outstanding at June 30, 2026 are as follows:


	Maturities
2026	$	1,010
2027	3,493
2028	1,999
2029	5,268
2030	1,579
Thereafter	9,616
Total maturities	22,965
Unamortized premium — net	24
Debt issuance costs	(89)
Fair value hedging basis adjustments (1)	(231)
Total long-term debt	$	22,669

(1) This represents the amount of fair value hedge basis adjustments related to long-term debt hedged. See Note 12 for more information on hedging of long-term debt.

FHLB borrowings: Our banking subsidiaries maintain secured credit facilities with the FHLB. Amounts available under these facilities are dependent on the amount of bank loans and the value of certain investment securities that are pledged as collateral. There was $500 million and $1.9 billion outstanding under these facilities as of June 30, 2026 and December 31, 2025, respectively, and these borrowings had a weighted-average interest rate of 3.79% and 3.90%, respectively. As of June 30, 2026 and December 31, 2025, the collateral pledged provided additional borrowing capacity of $32.8 billion and $74.2 billion, respectively.

Other short-term borrowings: Total other short-term borrowings outstanding at June 30, 2026 and December 31, 2025 were $13.9 billion and $6.9 billion, respectively, and had a weighted-average interest rate of 3.25% and 4.09%, respectively. Additional information regarding our other short-term borrowings facilities is described below.

The Company may engage with external financial institutions and the FICC in repurchase agreements collateralized by investment securities as another source of short-term liquidity. The Company had $4.3 billion and $1.3 billion outstanding pursuant to such repurchase agreements at June 30, 2026 and December 31, 2025, respectively. Repurchase agreements outstanding at June 30, 2026 mature between July 2026 and August 2026.

Our banking subsidiaries have access to funding through the Federal Reserve discount window. Amounts available are dependent upon the value of certain investment securities that are pledged as collateral. As of June 30, 2026 and December 31, 2025, our collateral pledged provided total borrowing capacity of $28.0 billion and $29.3 billion, respectively, of which no amounts were outstanding at the end of either period.

CSC has the ability to issue up to $5.0 billion of commercial paper notes with maturities of up to 270 days. There was $2.5 billion gross par value before discount of $16 million outstanding at June 30, 2026, and $1.9 billion gross par value before discount of $32 million outstanding at December 31, 2025. At the end of the first quarter of 2026, CS&Co received authorization from its Board of Directors to issue up to $10.0 billion of unsecured commercial paper notes with maturities of up to 270 days. There was $4.9 billion gross par value before discount of $48 million outstanding as of June 30, 2026. CSC and

- 51 -

THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)

CS&Co also have access to unsecured uncommitted lines of credit with external banks with total borrowing capacity of $1.9 billion; no amounts were outstanding as of June 30, 2026 or December 31, 2025.

CS&Co maintains secured uncommitted lines of credit, under which CS&Co may borrow on a short-term basis and pledge either client margin securities or firm securities as collateral, based on the terms of the agreements. There was $2.3 billion and $3.8 billion outstanding at June 30, 2026 and December 31, 2025, respectively, pursuant to these agreements.

Annual maturities on other short-term borrowings outstanding at June 30, 2026 are as follows:


	2026		2027		Total
FHLB borrowings	$	500	$	—	$	500
Other short-term borrowings	13,219		726		13,945
Total	$	13,719	$	726	$	14,445

11. Commitments and Contingencies

Loan portfolio: CSB provides a co-branded loan origination program for CSB clients (the Program) with Rocket Mortgage, LLC. Pursuant to the Program, Rocket Mortgage, LLC originates and services First Mortgages and HELOCs for CSB clients. Under the Program, CSB purchases certain First Mortgages and HELOCs that are originated by Rocket Mortgage, LLC. CSB purchased First Mortgages of $2.6 billion and $1.7 billion during the second quarter of 2026 and 2025, respectively, and $4.6 billion and $2.7 billion during the first six months of 2026 and 2025, respectively. CSB purchased HELOCs with commitments of $71 million and $79 million during the second quarter of 2026 and 2025, respectively, and $133 million and $129 million during the first six months of 2026 and 2025, respectively.

The Company’s commitments to extend credit on lines of credit and to purchase First Mortgages are as follows:


	June 30, 2026		December 31, 2025
Commitments to extend credit related to unused HELOCs and other lines of credit	$	1,868	$	1,793
Commitments to purchase First Mortgage loans	1,464		925
Total	$	3,332	$	2,718

Guarantees and indemnifications: Schwab has clients that sell (i.e., write) listed option contracts that are cleared by the Options Clearing Corporation – a clearing house that establishes margin requirements on these transactions. We satisfy the margin requirements of these transactions through pledging certain client securities. For additional information on these pledged securities, refer to Note 13. In connection with its securities lending activities, Schwab is required to provide collateral to certain brokerage clients. The Company satisfies the collateral requirements by providing cash as collateral.

The Company also provides guarantees to securities clearing houses and exchanges under standard membership agreements, which require members to guarantee the performance of other members. Under the agreements, if another member becomes unable to satisfy its obligations to the clearing houses and exchanges, other members would be required to meet shortfalls. The Company’s liability under these arrangements is not quantifiable and may exceed the amounts it has posted as collateral. The Company also engages third-party firms to clear clients’ futures and options on futures transactions and to facilitate clients’ foreign exchange trading, and has agreed to indemnify these firms for any losses that they may incur from the client transactions introduced to them by the Company. The potential requirement for the Company to make payments under these arrangements is remote. Accordingly, no liability has been recognized for these guarantees and indemnifications.

IDA agreement: The 2023 IDA agreement with the TD Depository Institutions specifies responsibilities, including certain contingent obligations, of the Company. Pursuant to the 2023 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 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 is 15 basis points. The Company’s ability to migrate these balances to its balance sheet is dependent on multiple factors including having sufficient capital levels to sustain these incremental deposits and certain binding limitations specified in the 2023 IDA agreement.

The 2023 IDA agreement extends the term to sweep balances to the TD Depository Institutions through July 1, 2034, and requires that Schwab maintain certain minimum and maximum insured deposit account balances (IDA balances). Pursuant to

- 52 -

THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)

the terms of the agreement, after September 10, 2025, withdrawals of balances are permitted at Schwab’s discretion, subject to an obligation to maintain IDA balances above a minimum of $60 billion, with a maximum of $90 billion. In accordance with the agreement, Schwab moved $3.0 billion of BDA balances to its balance sheet during the first six months of 2026.

Designation of deposit balances for investment in fixed- or floating-rate instruments under the 2023 IDA agreement is at Schwab’s sole discretion with certain limitations on the amount of fixed-rate obligation amounts. If IDA balances decline below the required IDA balance minimum as described above, Schwab would be required to make a nonperformance payment to the TD Depository Institutions pursuant to the terms of the 2023 IDA agreement.

As of June 30, 2026, the total ending IDA balance was $70.7 billion, of which $59.8 billion was fixed-rate obligation amounts and $10.9 billion was floating-rate obligation amounts. As of December 31, 2025, the total ending IDA balance was $76.3 billion, of which $59.6 billion was fixed-rate obligation amounts and $16.7 billion was floating-rate obligation amounts.

Legal contingencies: Schwab is 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. The Company is also the subject of inquiries, investigations, and proceedings by regulatory and other governmental agencies.

Predicting the outcome of a litigation or regulatory matter is inherently difficult, requiring significant judgment and evaluation of various factors, including the procedural status of the matter and any recent developments; prior experience and the experience of others in similar cases; available defenses, including potential opportunities to dispose of a case on the merits or procedural grounds before trial (e.g., motions to dismiss or for summary judgment); the progress of fact discovery; the opinions of counsel and experts regarding potential damages; and potential opportunities for settlement and the status of any settlement discussions. It may not be reasonably possible to estimate a range of potential liability until the matter is closer to resolution – pending, for example, further proceedings, the outcome of key motions or appeals, or discussions among the parties. Numerous issues may have to be developed, such as discovery of important factual matters and determination of threshold legal issues, which may include novel or unsettled questions of law. Reserves are established or adjusted or further disclosure and estimates of potential loss are provided as the matter progresses and more information becomes available.

Schwab believes it has strong defenses in all significant matters currently pending and is contesting liability and any damages claimed. Nevertheless, some of these matters may result in adverse judgments or awards, including penalties, injunctions or other relief, and the Company may also determine to settle a matter because of the uncertainty and risks of litigation. Described below are any matters in which there is a reasonable possibility that a material loss could be incurred or where the matter may otherwise be of significant interest to stockholders. Unless otherwise noted, the Company is unable to provide a reasonable estimate of any potential liability given the stage of proceedings in the matter. With respect to all other pending matters, based on current information and consultation with counsel, it does not appear reasonably possible that the outcome of any such matter would be material to the financial condition, operating results, or cash flows of the Company.

Corrente Antitrust Litigation: On June 6, 2022, CSC was sued in the U.S. District Court for the Eastern District of Texas on behalf of a putative class of customers who purchased or sold securities through CS&Co or TD Ameritrade, Inc. (now part of CS&Co) from October 26, 2020 to the present. The lawsuit alleges that CSC’s acquisition of Ameritrade violated Section 7 of the Clayton Act because it has resulted in an anticompetitive market for the execution of retail customer orders. Plaintiffs seek unspecified damages, as well as injunctive and other relief. A motion by the Company to dismiss the lawsuit was denied by the court on February 24, 2023. On December 12, 2024, the parties filed a joint stipulation proposing a settlement of the lawsuit on a class basis under which defendants would commit to certain non-monetary undertakings and payments of plaintiffs’ attorneys’ fees and costs in an amount that would be immaterial. The court granted final approval of the settlement on November 24, 2025, and certain objectors to the settlement have appealed the decision to the Fifth Circuit Court of Appeals.

12. Derivative Instruments and Hedging Activities

Risk Management Objective of Using Derivatives

The Company utilizes derivative instruments to manage interest rate risk exposures that arise from business activities related to changes in fair values or the receipt and payment of future known and uncertain cash amounts due to changes in interest rates. The Company uses derivative instruments to manage changes in the fair values of, as well as changes in the amounts and/or timing of known or expected cash receipts and payments related to, our AFS investment portfolio, margin loans, PALs, and Senior Notes.

- 53 -

THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)

For a description of how the Company accounts for derivative instruments, see Item 8 – Note 2 in the 2025 Form 10-K. For additional information on the basis of presentation for derivative instruments on the Company’s condensed consolidated balance sheets and related offsetting considerations, see Note 13. Cash flows associated with derivative instruments are reflected as cash flows from operating activities in the condensed consolidated statements of cash flows consistent with the treatment and nature of the items being hedged.

Fair Value Hedges of Interest Rate Risk

The Company is exposed to changes in the fair value of its fixed-rate AFS securities and Senior Notes, as well as its fixed-to-floating rate Senior Notes during the fixed-rate period, due to changes in benchmark interest rates. The Company uses cleared interest rate swaps to manage its exposure to changes in fair value of these instruments attributable to changes in the designated benchmark interest rate. Cleared interest rate swaps designated as fair value hedges of AFS securities involve the payment of fixed-rate amounts to a CCP in exchange for the Company receiving floating-rate payments over the life of the agreements. Cleared interest rate swaps designated as fair value hedges of Senior Notes involve the receipt of fixed-rate amounts from a CCP in exchange for the Company’s floating-rate payments over the life of the agreements.

Cash Flow Hedges of Interest Rate Risk

The Company uses cleared interest rate swaps designated as cash flows hedges as part of its interest rate risk management strategy to add stability to interest revenue and to manage its exposure to interest rate movements. Interest rate swaps designated as cash flow hedges involve the receipt of fixed-rate amounts from a CCP in exchange for the Company’s floating-rate payments over the life of the agreements. Such derivatives are used to hedge the variable cash flows associated with Schwab’s margin loans and PALs.

Notional Amounts of Derivative Instruments

The Company had outstanding interest rate swaps with aggregate notional amounts of $61.6 billion and $42.2 billion at June 30, 2026 and December 31, 2025, respectively, that were designated as fair value hedges of interest rate risk. The Company had outstanding interest rate swaps with aggregate notional amounts of $77.1 billion and $18.7 billion at June 30, 2026 and December 31, 2025, respectively, that were designated as cash flow hedges of interest rate risk.

The notional amount is the basis upon which the pay-fixed/receive-float and receive-fixed/pay-float payments are determined; however, the amount is not exchanged. While the notional amounts give an indication of the volume of our derivative activity, they do not necessarily provide information on the amount of the underlying exposure being hedged. For example, we may enter into multiple hedges covering different periods of time but relating to the same underlying principal balances to hedge interest receipts or payments on AFS securities, margin loans, PALs, and Senior Notes. As a result, at certain times the combined notional amount of hedges may exceed the underlying principal balances.

As of June 30, 2026, through its cash flow hedges, the Company hedged interest receipts on $20.0 billion of margin loans with a total outstanding notional of $43.6 billion, and interest receipts on $24.8 billion of PALs with a total outstanding notional of $33.5 billion. As of June 30, 2026, through fair value hedges, the Company hedged $21.8 billion of Senior Notes with a total outstanding notional amount of $50.3 billion and $11.3 billion of AFS securities with a total outstanding notional amount of $11.3 billion.

Fair Values of Derivative Instruments

The table below presents the gross fair values of the Company’s interest rate swaps designated as hedging instruments on the condensed consolidated balance sheets:


	June 30, 2026				December 31, 2025
	Assets		Liabilities		Assets		Liabilities
Interest rate swaps (1,2)	$	—	$	2	$	1	$	1

(1) Derivative assets are included in other assets and derivative liabilities are included in accrued expenses and other liabilities on the condensed consolidated balance sheets. Derivative assets as of June 30, 2026 were less than $500 thousand.

(2) Includes reductions related to variation margin settlements. Settlements on derivative positions cleared through CCPs are reflected as reductions to the associated derivative asset and liability balances. As of June 30, 2026, there was a $80 million reduction of derivative assets and a $693 million reduction of derivative liabilities related to variation margin settlements. As of December 31, 2025, there was a $93 million reduction of derivative assets and a $21 million reduction of derivative liabilities related to variation margin settlements.

- 54 -

THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)

Effects of Fair Value Hedge Accounting

The following amounts are included on the condensed consolidated balance sheets related to fair value hedges:


	Carrying Amount of the Hedged Assets/(Liabilities)				Cumulative Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets and Liabilities
	June 30, 2026		December 31, 2025		June 30, 2026		December 31, 2025
Line item in which the hedged item is included:
Available for sale securities (1,2)	$	11,245	$	12,249	$	(67)	$	(16)
Long-term debt (3)	(21,468)		(20,726)		235		(6)

(1) Includes the amortized cost basis of AFS securities included in PLM hedging relationships. At June 30, 2026 and December 31, 2025, the amortized cost basis of the closed portfolios used in these hedging relationships was $685 million and $1.1 billion, respectively, of which $416 million and $771 million was designated in a portfolio layer hedging relationship at June 30, 2026 and December 31, 2025, respectively. The cumulative basis adjustments associated with these hedging relationships were a reduction of $4 million and an increase of $2 million of the amortized cost basis of the closed portfolios at June 30, 2026 and December 31, 2025, respectively.

(2) Excludes the amortized cost and fair value hedging adjustment of AFS securities for which hedge accounting has been discontinued. The cumulative amount of fair value hedging adjustments remaining for these securities was a reduction of the amortized cost basis of $73 million and $26 million at June 30, 2026 and December 31, 2025, respectively, which are recorded in AFS securities on the condensed consolidated balance sheets and amortized to interest revenue as a yield adjustment over the lives of the securities.

(3) Excludes the carrying amount and fair value hedging adjustment of long-term debt for which hedge accounting has been discontinued. The cumulative amount of fair value hedging adjustments remaining for long-term debt was an increase of the carrying amount of $4 million and $5 million at June 30, 2026 and December 31, 2025, respectively, which is recorded in long-term debt on the condensed consolidated balance sheets and amortized to interest expense over the lives of the borrowings.

The table below presents the effect of the Company’s interest rate swaps designated as fair value hedges on the condensed consolidated statements of income:


	Location and Amount of Gain (Loss) Recognized in Income
	Interest Revenue				Interest Expense
Three Months Ended June 30,	2026		2025		2026		2025
Gain (loss) on fair value hedging relationships:
Hedged items	$	(76)	$	94	$	134	$	9
Derivatives designated as hedging instruments (1)	76		(94)		(134)		(9)

Six Months Ended June 30,	2026		2025		2026		2025
Gain (loss) on fair value hedging relationships:
Hedged items	$	(107)	$	255	$	241	$	(16)
Derivatives designated as hedging instruments (1)	107		(255)		(241)		18

(1) Interest revenue excludes net gain (loss) from periodic interest accruals and receipts (payments) of $1 million and $2 million for the three and six months ended June 30, 2026, respectively, and $14 million and $32 million for the three and six months ended June 30, 2025, respectively. Interest expense excludes net gain (loss) from periodic interest accruals and receipts (payments) of $(11) million and $(6) million for the three and six months ended June 30, 2026, respectively, and $(14) million and $(24) million for the three and six months ended June 30, 2025, respectively.

Effects of Cash Flow Hedge Accounting

The table below presents the effect of the Company’s interest rate swaps designated as cash flow hedges on AOCI (pre-tax) and the condensed consolidated statements of income:


	Three Months Ended June 30, 2026		Six Months Ended June 30, 2026		Three and Six Months Ended June 30, 2025
AOCI at beginning of period	$	(158)	$	49	$	—
Gain (loss) recognized in other comprehensive income (1)	(315)		(540)		(15)
Realized (gain) loss reclassified from AOCI to interest revenue	22		40		17
AOCI at end of period	$	(451)	$	(451)	$	2

(1) Included in net unrealized gain (loss) on derivatives designated as cash flow hedging instruments on the condensed consolidated statements of comprehensive income.

For the twelve months following June 30, 2026, the Company expects to reclassify from AOCI into interest revenue approximately $197 million of pre-tax losses.

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THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)

13. Financial Instruments Subject to Off-Balance Sheet Credit Risk

Resale agreements: CS&Co enters into collateralized resale agreements principally with other broker-dealers to meet obligations related to customer protection under SEC Rule 15c3-3. These collateralized resale agreements could result in losses in the event the counterparty fails to purchase the securities held as collateral for the cash advanced and the fair value of the securities declines. To mitigate this risk, CS&Co requires that the counterparty deliver securities to a custodian, to be held as collateral, with a fair value at or in excess of the resale price. CS&Co also sets standards for the credit quality of the counterparty, monitors the fair value of the underlying securities as compared to the related receivable, including accrued interest, and requires additional collateral where deemed appropriate. The collateral provided under these resale agreements is utilized to meet obligations under broker-dealer client protection rules, which place limitations on our ability to access such segregated securities. For CS&Co to repledge or sell this collateral, we would be required to deposit cash and/or securities of an equal amount into our segregated reserve bank accounts in order to meet our segregated cash and investments requirement. Amounts related to these resale agreements are included in cash and investments segregated and on deposit for regulatory purposes in the condensed consolidated balance sheets.

Schwab’s banking subsidiaries also enter into collateralized resale agreements with the FICC in which they buy securities and agree to resell these securities at a future date at an agreed upon price. Schwab receives collateral with a fair value equal to or in excess of the carrying value of the related receivables, including accrued interest, and requires additional collateral where deemed appropriate. Schwab is permitted by contract to repledge or sell collateral received under these resale agreements. In order to repledge or sell this collateral, the banking subsidiaries would be required to deposit additional securities of an equal amount with the custodian to replace the collateral received and maintain the net position. The ability to repledge or sell collateral maintained by the custodian in conjunction with collateralized resale agreements is subject to operational limitations, which may restrict Schwab’s use of the securities. There were no securities repledged or sold under these arrangements as of June 30, 2026 and December 31, 2025. Amounts recognized pursuant to these arrangements are presented gross in the condensed consolidated balance sheet and are included in cash and cash equivalents or other assets in the condensed consolidated balance sheets based upon the maturity date of the transaction. The Company’s collateralized resale agreements are considered to be enforceable master netting arrangements; however, we do not net these arrangements.

Securities lending: Schwab loans brokerage client securities temporarily to other broker-dealers and clearing houses in connection with its securities lending activities and receives cash as collateral for the securities loaned. Increases in security prices may cause the fair value of the securities loaned to exceed the amount of cash received as collateral. In the event a counterparty to these transactions does not return the loaned securities or provide additional cash collateral, we may be exposed to the risk of acquiring the securities at prevailing market prices in order to satisfy our client obligations. Schwab mitigates this risk by requiring credit approvals for counterparties, monitoring the fair value of securities loaned, and requiring additional cash as collateral when necessary. In addition, most of our securities lending transactions are through a program with a clearing organization, which guarantees the return of collateral to us. We also borrow securities from other broker-dealers to fulfill short sales by brokerage clients and deliver cash to the lender in exchange for the securities. The fair value of these borrowed securities was $18.6 billion and $4.6 billion at June 30, 2026 and December 31, 2025, respectively. Our securities lending transactions are subject to enforceable master netting arrangements with other broker-dealers; however, we do not net securities lending transactions. Therefore, amounts related to securities borrowed and securities loaned are presented gross in the condensed consolidated balance sheets and are included in receivables from brokers, dealers, and clearing organizations and payables to brokers, dealers, and clearing organizations, respectively, in the condensed consolidated balance sheets.

Repurchase agreements: Schwab’s banking subsidiaries enter into collateralized repurchase agreements with external financial institutions and the FICC in which they sell securities and agree to repurchase these securities on a specified future date at a stated repurchase price. These repurchase agreements are collateralized by investment securities with a fair value equal to or in excess of the secured borrowing liability. CS&Co also enters into collateralized repurchase agreements with external financial institutions in which CS&Co utilizes qualifying securities in client margin accounts as collateral. These repurchase agreements are collateralized by client margin securities with a fair value equal to or in excess of the secured borrowing liability. Client margin securities are transferred to an independent agent on behalf of CS&Co and the counterparty, who assumes the responsibility of receiving eligible securities and assigning these securities to the counterparty. Decreases in security prices posted as collateral for repurchase agreements may require Schwab to transfer cash and/or additional securities deemed acceptable by the counterparty. To mitigate this risk, Schwab monitors the fair value of underlying securities pledged as collateral compared to the related liability. Our collateralized repurchase agreements with each external financial institution are considered to be enforceable master netting arrangements. However, we do not net these arrangements. As such, the secured borrowings associated with these collateralized repurchase agreements are presented gross in the condensed consolidated balance sheets. Repurchase agreements at Schwab’s banking subsidiaries are included in other short-term borrowings in the

- 56 -

THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)

consolidated balance sheets and repurchase agreements at CS&Co are included in payables to brokers, dealers, and clearing organizations in the condensed consolidated balance sheets.

Interest rate swaps: Schwab uses interest rate swaps to manage certain interest rate risk exposures. Schwab’s interest rate swaps are cleared through CCPs which require the Company to post initial margin as collateral against potential losses. Schwab pledges investment securities as collateral in order to meet the CCP’s initial margin requirements. Initial margin is posted through FCMs which serve as the intermediary between CCPs and Schwab. Our interest rate swaps are subject to enforceable master netting arrangements allowing a right of setoff within each FCM-CCP relationship; however, we do not net these positions. Therefore, interest rate swaps are presented gross in the condensed consolidated balance sheets. Derivative assets are included in other assets and derivative liabilities are included in accrued expenses and other liabilities in the condensed consolidated balance sheets. See Note 12 for additional information on the Company’s interest rate swaps.

The following table presents information about our interest rate swaps, resale agreements, securities lending, repurchase agreements, and other activity depicting the potential effect of rights of setoff between these recognized assets and liabilities. Collateral disclosed in the table below is limited to the amount of the related recognized asset or liability for each counterparty, even when the collateral value exceeds the gross asset or liability value:


	Gross Assets/ Liabilities		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts Presented in the Condensed Consolidated Balance Sheets		Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets					Net Amount
			Counterparty Offsetting		Collateral
June 30, 2026
Assets
Resale agreements	$	13,236	$	—	$	13,236	$	—	$	(13,236)	(1)	$	—
Securities borrowed	19,027		—		19,027		(9,723)		(9,132)			172
Interest rate swaps	—		—		—		—		—		(2)	—
Total	$	32,263	$	—	$	32,263	$	(9,723)	$	(22,368)		$	172
Liabilities

Repurchase agreements (3)	$	7,810	$	—	$	7,810	$	—	$	(7,810)	(4)	$	—
Securities loaned (5)	38,659		—		38,659		(9,723)		(28,316)			620
Secured short-term borrowings (6)	2,300		—		2,300		—		(2,300)			—
Interest rate swaps	2		—		2		—		(2)		(2)	—
Total	$	48,771	$	—	$	48,771	$	(9,723)	$	(38,428)		$	620

December 31, 2025
Assets
Resale agreements	$	16,901	$	—	$	16,901	$	—	$	(16,901)	(1)	$	—
Securities borrowed	4,797		—		4,797		(3,069)		(1,677)			51
Interest rate swaps	1		—		1		—		—		(2)	1
Total	$	21,699	$	—	$	21,699	$	(3,069)	$	(18,578)		$	52
Liabilities
Repurchase agreements (3)	$	1,301	$	—	$	1,301	$	—	$	(1,301)	(4)	$	—
Securities loaned (5)	25,131		—		25,131		(3,069)		(21,137)			925
Secured short-term borrowings (6)	3,800		—		3,800		—		(3,800)			—
Interest rate swaps	1		—		1		—		—		(2)	1
Total	$	30,233	$	—	$	30,233	$	(3,069)	$	(26,238)		$	926

(1) At June 30, 2026 and December 31, 2025, the fair value of collateral received in connection with resale agreements that was available to be repledged or sold was $13.5 billion and $17.2 billion, respectively.

(2) At June 30, 2026 and December 31, 2025, the fair value of initial margin pledged as collateral related to interest rate swaps was $760 million and $281 million, respectively. See Notes 6 and 12 for additional information.

(3) At June 30, 2026 and December 31, 2025, repurchase agreements outstanding at CS&Co had continuous contractual maturities of 35-125 days.

(4) At June 30, 2026 and December 31, 2025, the fair value of collateral pledged in connection with repurchase agreements at the Company’s banking subsidiaries was $4.5 billion and $1.3 billion, respectively. See Note 10 for additional information. At June 30, 2026 and December 31, 2025, collateral pledged for repurchase agreements outstanding at CS&Co was comprised of equity securities held in client brokerage accounts. See table below for fair value of client margin securities held in client brokerage accounts pledged as collateral.

(5) Securities loaned are predominantly comprised of equity securities held in client brokerage accounts. At June 30, 2026, $27.2 billion of securities loaned had overnight and continuous remaining contractual maturities and $11.5 billion of securities loaned had contractual maturities of 35-95 days. At December 31, 2025, $15.0 billion of securities loaned had overnight and continuous remaining contractual maturities and $10.1 billion of securities loaned had contractual maturities of 35-95 days.

(6) Included in other short-term borrowings in the condensed consolidated balance sheets. At June 30, 2026 and December 31, 2025, collateral pledged for secured short-term borrowings was comprised of equity securities held in client brokerage accounts. See below for amount of collateral pledged and Note 10 for additional information.

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THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)

Clients with margin loans have agreed to allow Schwab to pledge collateralized securities in their brokerage accounts in accordance with federal regulations. As of June 30, 2026 and December 31, 2025, the fair value of client securities available to be pledged under these regulations was $228.2 billion and $155.5 billion, respectively. The Company may also pledge collateral obtained through securities borrowed transactions. The following table summarizes the fair value of client margin securities and securities obtained from securities borrowed transactions that we had pledged to third parties:


	June 30, 2026		December 31, 2025
Fair value of securities pledged for:
Fulfillment of requirements with the Options Clearing Corporation (1)	$	52,440	$	34,791
Fulfillment of client short sales	51,886		16,196
Securities lending to other broker-dealers	37,482		23,867
Collateral for secured short-term borrowings	2,484		4,376
Collateral for repurchase agreements	3,937		56
Total collateral pledged to third parties	$	148,229	$	79,286

Note: Excludes amounts available and pledged for securities lending from fully-paid client securities. The fair value of fully-paid client securities available and pledged was $265 million and $217 million at June 30, 2026 and December 31, 2025, respectively.

(1) Securities pledged to fulfill client margin requirements for open option contracts established with the Options Clearing Corporation.

14. Fair Values of Assets and Liabilities

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Schwab’s assets and liabilities measured at fair value on a recurring basis include certain cash equivalents, certain investments segregated and on deposit for regulatory purposes, AFS securities, certain other assets, interest rate derivatives, and certain accrued expenses and other liabilities. The Company uses the market approach to determine the fair value of assets and liabilities. When available, the Company uses quoted prices in active markets to measure the fair value of assets and liabilities. Quoted prices for investments in exchange-traded securities represent end-of-day close prices published by exchanges. Quoted prices for money market funds and other mutual funds represent reported net asset values. When utilizing market data and bid-ask spread, the Company uses the price within the bid-ask spread that best represents fair value. When quoted prices in active markets do not exist, the Company uses prices obtained from independent third-party pricing services to measure the fair value of investment assets, and we generally obtain prices from three independent third-party pricing sources for such assets recorded at fair value.

Our primary independent pricing service provides prices for our fixed income investments such as commercial paper; certificates of deposit; U.S. government and agency securities; state and municipal securities; corporate debt securities; asset-backed securities; foreign government agency securities; and non-agency commercial mortgage-backed securities. Such prices are based on observable trades, broker/dealer quotes, and discounted cash flows that incorporate observable information such as yields for similar types of securities (a benchmark interest rate plus observable spreads) and weighted-average maturity for the same or similar “to-be-issued” securities. We compare the prices obtained from the primary independent pricing service to the prices obtained from the additional independent pricing services to determine if the price obtained from the primary independent pricing service is reasonable. Schwab does not adjust the prices received from independent third-party pricing services unless such prices are inconsistent with the definition of fair value and result in material differences in the amounts recorded.

Liabilities measured at fair value on a recurring basis include interest rate swaps, securities sold but not yet purchased, and repurchase liabilities related to client-held fractional shares of equities, ETFs, and other securities, which are included in other assets on the condensed consolidated balance sheets. The fair values of securities sold but not yet purchased are based on quoted market prices or other observable market data. The Company has elected the fair value option pursuant to ASC 825 Financial Instruments for the repurchase liabilities to match the measurement and accounting of the related client-held fractional shares. The fair values of the repurchase liabilities are based on quoted market prices or other observable market data consistent with the related client-held fractional shares. Unrealized gains and losses on client-held fractional shares offset the unrealized gains and losses on the corresponding repurchase liabilities, resulting in no impact to the condensed consolidated statements of income. The Company’s liabilities to repurchase client-held fractional shares do not have credit risk, and, as a result, the Company has not recognized any gains or losses in the condensed consolidated statements of income or comprehensive income attributable to instrument-specific credit risk for these repurchase liabilities. The repurchase liabilities are included in accrued expenses and other liabilities on the condensed consolidated balance sheets.

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THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)

The fair values of interest rate derivatives are based on market observable interest rate yield curves. Fair value measurements are priced considering the coupon rate of the fixed leg of the contract and the variable coupon rate on the floating leg of the contract. Valuation is based on both spot and forward rates on the swap yield curve. See Note 12 for additional information on the Company’s interest rate derivatives.

For a description of the fair value hierarchy and Schwab’s fair value methodologies, see Item 8 – Note 2 in the 2025 Form 10-K. The Company did not adjust prices received from the primary independent third-party pricing service at June 30, 2026 or December 31, 2025.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables present the fair value hierarchy for assets and liabilities measured at fair value on a recurring basis:


June 30, 2026	Level 1		Level 2		Level 3		Balance at Fair Value
Cash equivalents:
Money market funds	$	18,504	$	—	$	—	$	18,504


Total cash equivalents	18,504		—		—		18,504
Investments segregated and on deposit for regulatory purposes:
U.S. government securities	—		17,827		—		17,827

Total investments segregated and on deposit for regulatory purposes	—		17,827		—		17,827
Available for sale securities:
U.S. agency mortgage-backed securities	—		37,741		—		37,741
U.S. Treasury securities	—		11,951		—		11,951
Corporate debt securities	—		5,017		—		5,017
Asset-backed securities	—		7,204		—		7,204
U.S. state and municipal securities	—		424		—		424

Non-agency commercial mortgage-backed securities	—		112		—		112



Other	—		18		—		18
Total available for sale securities	—		62,467		—		62,467
Other assets:
Other securities owned:
Equity, corporate debt, and other securities	2,028		113		—		2,141
Mutual funds and ETFs	1,533		—		—		1,533
State and municipal debt obligations	—		48		—		48
U.S. government securities	—		16		—		16
Total other securities owned	3,561		177		—		3,738

Total other assets	3,561		177		—		3,738
Total assets	$	22,065	$	80,471	$	—	$	102,536
Accrued expenses and other liabilities:
Interest rate swaps	$	—	$	2	$	—	$	2
Other	3,263		53		—		3,316
Total accrued expenses and other liabilities	3,263		55		—		3,318
Total liabilities	$	3,263	$	55	$	—	$	3,318

- 59 -

THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)


December 31, 2025	Level 1		Level 2		Level 3		Balance at Fair Value
Cash equivalents:
Money market funds	$	13,947	$	—	$	—	$	13,947
U.S. Treasury securities	—		1,989		—		1,989
Total cash equivalents	13,947		1,989		—		15,936
Investments segregated and on deposit for regulatory purposes:
U.S. government securities	—		23,555		—		23,555

Total investments segregated and on deposit for regulatory purposes	—		23,555		—		23,555
Available for sale securities:
U.S. agency mortgage-backed securities	—		41,434		—		41,434
U.S. Treasury securities	—		11,364		—		11,364
Corporate debt securities	—		4,667		—		4,667
Asset-backed securities	—		4,199		—		4,199
U.S. state and municipal securities	—		561		—		561

Non-agency commercial mortgage-backed securities	—		113		—		113


Other	—		19		—		19
Total available for sale securities	—		62,357		—		62,357
Other assets:
Other securities owned:
Equity, corporate debt, and other securities	1,704		84		—		1,788
Mutual funds and ETFs	1,314		—		—		1,314
State and municipal debt obligations	—		45		—		45
U.S. government securities	—		15		—		15
Total other securities owned	3,018		144		—		3,162
Interest rate swaps	—		1		—		1
Total other assets	3,018		145		—		3,163
Total assets	$	16,965	$	88,046	$	—	$	105,011
Accrued expenses and other liabilities:
Interest rate swaps	$	—	$	1	$	—	$	1
Other	2,804		40		—		2,844
Total accrued expenses and other liabilities	2,804		41		—		2,845
Total liabilities	$	2,804	$	41	$	—	$	2,845

- 60 -

THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)

Fair Value of Other Financial Instruments

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


June 30, 2026	Carrying Amount		Level 1		Level 2		Level 3		Balance at Fair Value
Assets
Cash and cash equivalents	$	22,076	$	21,476	$	600	$	—	$	22,076
Cash and investments segregated and on deposit for regulatory purposes	15,143		2,543		12,600		—		15,143
Receivables from brokers, dealers, and clearing organizations	22,004		—		22,004		—		22,004
Receivables from brokerage clients — net	122,799		—		122,799		—		122,799
Held to maturity securities:
U.S. agency mortgage-backed securities	128,551		—		119,220		—		119,220




U.S. Treasury securities	2,017		—		1,986		—		1,986




Total held to maturity securities	130,568		—		121,206		—		121,206
Bank loans — net:
First Mortgages	32,752		—		30,748		—		30,748
HELOCs	422		—		417		—		417
Pledged asset lines	33,416		—		33,416		—		33,416
Other	406		—		406		—		406
Total bank loans — net	66,996		—		64,987		—		64,987
Other assets	684		—		684		—		684

Liabilities
Bank deposits	$	249,682	$	—	$	249,682	$	—	$	249,682
Payables to brokers, dealers, and clearing organizations	43,826		—		43,826		—		43,826
Payables to brokerage clients	123,968		—		123,968		—		123,968
Accrued expenses and other liabilities	1,655		—		1,655		—		1,655
Other short-term borrowings	13,945		—		13,945		—		13,945
Federal Home Loan Bank borrowings	500		—		500		—		500
Long-term debt	22,054		—		22,014		—		22,014

- 61 -

THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)


December 31, 2025	Carrying Amount		Level 1		Level 2		Level 3		Balance at Fair Value
Assets
Cash and cash equivalents	$	30,094	$	30,094	$	—	$	—	$	30,094
Cash and investments segregated and on deposit for regulatory purposes	19,290		2,470		16,820		—		19,290
Receivables from brokers, dealers, and clearing organizations	7,190		—		7,190		—		7,190
Receivables from brokerage clients — net	104,625		—		104,625		—		104,625
Held to maturity securities:
U.S. agency mortgage-backed securities	133,563		—		125,649		—		125,649




U.S. Treasury securities	406		—		406		—		406



Total held to maturity securities	133,969		—		126,055		—		126,055
Bank loans — net:
First Mortgages	30,456		—		28,612		—		28,612
HELOCs	426		—		431		—		431
Pledged asset lines	26,603		—		26,603		—		26,603
Other	470		—		470		—		470
Total bank loans — net	57,955		—		56,116		—		56,116
Other assets	766		—		766		—		766

Liabilities
Bank deposits	$	255,747	$	—	$	255,747	$	—	$	255,747
Payables to brokers, dealers, and clearing organizations	25,689		—		25,689		—		25,689
Payables to brokerage clients	116,341		—		116,341		—		116,341
Accrued expenses and other liabilities	1,359		—		1,359		—		1,359
Other short-term borrowings	6,913		—		6,913		—		6,913
Federal Home Loan Bank borrowings	1,850		—		1,850		—		1,850
Long-term debt	22,162		—		22,059		—		22,059

15. Stockholders’ Equity

Common and Nonvoting Common Stock

During the three and six months ended June 30, 2026, CSC repurchased 11.2 million and 35.5 million shares, respectively, of its common stock under its $20.0 billion share repurchase authorization for $1.0 billion and $3.4 billion, respectively. As of June 30, 2026 approximately $11.1 billion remained on the $20.0 billion authorization.

On February 12, 2025, TD Group US Holdings LLC, an affiliate of TD Bank, completed a secondary public offering of the Company’s common shares through which TD Group US Holdings LLC sold 133.8 million shares of the Company’s common stock and 31.7 million shares of the Company’s nonvoting common stock, which automatically converted into common stock. The offering was completed at a price of $79.25 per share, for an aggregate amount of $13.1 billion. The Company did not receive any of the proceeds from this sale.

Concurrent with the completion of the secondary offering, and pursuant to a repurchase agreement dated February 9, 2025, the Company repurchased directly from TD Group US Holdings LLC its remaining 19.2 million shares of nonvoting common stock at a price of $77.982 per share for an aggregate repurchase amount of $1.5 billion, which settled on February 12, 2025. The shares of nonvoting common stock automatically converted into common stock upon repurchase and transferred to treasury stock, reducing the number of shares outstanding. These shares were purchased under CSC’s previous $15.0 billion share repurchase authorization.

Through the completion of the secondary offering and the Company’s repurchase of nonvoting common stock, TD Bank disposed of all of its common shares of CSC and as of February 12, 2025, the Company had no remaining nonvoting common stock outstanding.

CSC repurchased an additional 3.9 million shares of its common stock for $351 million during the three months ended June 30, 2025 under its previous $15.0 billion authorization.

- 62 -

THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)

Common stock repurchases, net of issuances, are subject to a nondeductible excise tax which is recognized as a direct and incremental cost associated with these transactions. The tax is recorded as part of the cost basis of the treasury stock repurchased, resulting in no impact to the condensed consolidated statements of income.

Preferred Stock

On June 1, 2026, the Company redeemed all of the 20,554 outstanding shares of its fixed-rate reset non-cumulative perpetual preferred stock, Series I, and the corresponding 2,055,433 depositary shares, each representing a 1/100th interest in a share of the Series I preferred stock. The depositary shares were redeemed at a redemption price of $1,000 per depositary share for a total of $2.1 billion. The difference between the total redemption price and the prior carrying value of the Series I preferred stock resulted in a $25 million deemed dividend that was included in the calculation of EPS.

On April 22, 2026, the Company issued and sold 1,500,000 depositary shares, each representing a 1/100th ownership interest in a share of 6.100% fixed-rate reset non-cumulative perpetual preferred stock, Series L, $.01 par value per share, with a liquidation preference of $100,000 per share (equivalent of $1,000 per depositary share). The net proceeds of the offering were approximately $1.5 billion, after deducting the underwriting discount and offering expenses.

On June 2, 2025, the Company redeemed all of the 24,580 outstanding shares of its fixed-rate reset non-cumulative perpetual preferred stock, Series G, and the corresponding 2,457,964 depositary shares, each representing a 1/100th interest in a share of the Series G preferred stock. The depositary shares were redeemed at a redemption price of $1,000 per depositary share for a total of $2.5 billion. The difference between the total redemption and the prior carrying value of the Series G preferred stock resulted in a $30 million deemed dividend that was included in the calculation of EPS.

The Company’s preferred stock issued and outstanding is as follows:


			Liquidation Preference Per Share							Dividend Rate in Effect at June 30, 2026		Earliest Redemption Date	Date at Which Dividend Rate Resets or Becomes Floating	Reset / Floating Rate	Margin Over Reset / Floating Rate
	Shares Issued and Outstanding (in ones) at		Carrying Value at
	June 30, 2026 (1)	December 31, 2025 (1)	June 30, 2026		December 31, 2025		Issue Date
Fixed-rate:
Series D	750,000	750,000	$	1,000	$	728	$	728	03/07/16	5.95	%	06/01/21	N/A	N/A	N/A
Series J	600,000	600,000	1,000		584		584		03/30/21	4.450	%	06/01/26	N/A	N/A	N/A
Fixed-to-floating rate/Fixed-rate reset:
Series F	4,884	4,884	100,000		481		481		10/31/17	5.000	%	12/01/27	12/01/27	3M LIBOR (2)	2.575	%

Series H (3)	22,267	22,267	100,000		2,200		2,200		12/11/20	4.000	%	12/01/30	12/01/30	10-Year Treasury	3.079	%
Series I (4)	—	20,554	—		—		2,030		03/18/21	—		—	—	—	—
Series K (5)	7,500	7,500	100,000		740		740		03/04/22	5.000	%	06/01/27	06/01/27	5-Year Treasury	3.256	%
Series L (5,6)	15,000	—	100,000		1,480		—		04/22/26	6.100	%	06/01/31	06/01/31	5-Year Treasury	2.250	%
Total preferred stock	1,399,651	1,405,205			$	6,213	$	6,763

(1) Represented by depositary shares.

(2) The reset/floating rate for Series F will be determined by the calculation agent prior to the commencement of the floating rate period using what the calculation agent determines to be the industry-accepted substitute or successor base rate to LIBOR.

(3) The dividend rate for Series H resets on each ten-year anniversary from the first reset date.

(4) Series I was redeemed on June 1, 2026.

(5) The dividend rate for Series K and Series L resets on each five-year anniversary from the first reset date.

(6) The Series L dividend rate resets on each five-year anniversary beginning on June 1, 2031 based on a five-year treasury rate, representing the average yields on actively traded U.S. Treasury securities adjusted to constant maturity for five-year maturities. Series L is only redeemable on divided payment dates on or after the first reset date.

N/A Not applicable.

- 63 -

THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)

Dividends declared on the Company’s preferred stock are as follows:


	Three Months Ended June 30,								Six Months Ended June 30,
	2026				2025				2026				2025
	Total Declared		Per Share Amount		Total Declared		Per Share Amount		Total Declared		Per Share Amount		Total Declared		Per Share Amount

Series D (1)	$	11.1	$	14.88	$	11.1	$	14.88	$	22.3	$	29.76	$	22.3	$	29.76

Series F (2)	12.2		2,500.00		12.2		2,500.00		12.2		2,500.00		12.2		2,500.00
Series G (3)	—		—		33.0		1,343.75		—		—		66.0		2,687.50
Series H (1)	22.2		1,000.00		22.2		1,000.00		44.5		2,000.00		44.5		2,000.00
Series I (4)	20.6		1,000.00		20.6		1,000.00		41.2		2,000.00		41.2		2,000.00
Series J (1)	6.7		11.13		6.7		11.13		13.4		22.26		13.4		22.26
Series K (1)	9.5		1,250.00		9.5		1,250.00		18.8		2,500.00		18.8		2,500.00
Series L (5)	—		—		—		—		—		—		—		—
Total	$	82.3			$	115.3			$	152.4			$	218.4

(1) Dividends paid quarterly.

(2) Dividends paid semi-annually until December 1, 2027 and quarterly thereafter.

(3) Series G was redeemed on June 2, 2025. Prior to redemption, dividends were paid quarterly. The final dividend was paid on June 2, 2025.

(4) Series I was redeemed on June 1, 2026. Prior to redemption, dividends were paid quarterly. The final dividend was paid on June 1, 2026.

(5) Series L was issued on April 22, 2026. Dividends are paid quarterly. The first dividend payment will be on September 1, 2026.

- 64 -

THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)

16. Accumulated Other Comprehensive Income

AOCI represents cumulative gains and losses that are not reflected in earnings. AOCI balances and the components of other comprehensive income (loss) are as follows:


	Total AOCI
Balance at March 31, 2025	$	(13,621)
Available for sale securities:
Net unrealized gain (loss), net of tax expense (benefit) of $116	501
Other reclassifications included in other revenue, net of tax expense (benefit) of $8	22
Held to maturity securities:
Amortization of amounts previously recorded upon transfer from available for sale, net of tax expense (benefit) of $61	500
Derivatives designated as cash flow hedging instruments:
Net unrealized gain (loss), net of tax expense (benefit) of $(4)	(11)
Reclassifications included in interest revenue, net of tax expense (benefit) of $4	13
Other (1)	5
Balance at June 30, 2025	$	(12,591)

Balance at March 31, 2026	$	(10,757)
Available for sale securities:
Net unrealized gain (loss), net of tax expense (benefit) of $(4)	(6)
Other reclassifications included in other revenue, net of tax expense (benefit) of $6	19
Held to maturity securities:
Amortization of amounts previously recorded upon transfer from available for sale, net of tax expense (benefit) of $121	393
Derivatives designated as cash flow hedging instruments:
Net unrealized gain (loss), net of tax expense (benefit) of $(74)	(241)
Reclassifications included in interest revenue, net of tax expense (benefit) of $5	17

Balance at June 30, 2026	$	(10,575)

Balance at December 31, 2024	$	(14,848)
Available for sale securities:
Net unrealized gain (loss), net of tax expense (benefit) of $369	1,309

Other reclassifications included in other revenue, net of tax expense (benefit) of $10	30
Held to maturity securities:

Amortization of amounts previously recorded upon transfer from available for sale, net of tax expense (benefit) of $189	910
Derivatives designated as cash flow hedging instruments:
Net unrealized gain (loss), net of tax expense (benefit) of $(4)	(11)
Reclassifications included in interest revenue, net of tax expense (benefit) of $4	13
Other (1)	6
Balance at June 30, 2025	$	(12,591)

Balance at December 31, 2025	$	(10,983)
Available for sale securities:
Net unrealized gain (loss), net of tax expense (benefit) of $(2)	—

Other reclassifications included in other revenue, net of tax expense (benefit) of $6	19
Held to maturity securities:

Amortization of amounts previously recorded upon transfer from available for sale, net of tax expense (benefit) of $238	772
Derivatives designated as cash flow hedging instruments:
Net unrealized gain (loss), net of tax expense (benefit) of $(128)	(412)
Reclassifications included in interest revenue, net of tax expense (benefit) of $9	31
Other (1)	(2)
Balance at June 30, 2026	$	(10,575)

(1) Tax expense (benefit) was less than $500 thousand.

As of June 30, 2026, the total remaining unamortized loss on securities transferred from AFS to HTM included in AOCI was $7.3 billion net of tax effect ($9.6 billion pre-tax). This loss is being amortized over the remaining lives of the securities, offsetting amortization of the securities’ premiums or discounts, and resulting in no impact to net income.

- 65 -

THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)

17. Earnings Per Common Share

As described in Note 15, TD Bank disposed of all of its common shares of CSC during the first quarter of 2025, including its holdings of nonvoting common stock. As of February 12, 2025, the Company had no remaining nonvoting common stock outstanding.

For details regarding the computations of basic and diluted EPS for the periods presented below, see Item 8 – Note 25 in the 2025 Form 10-K.

EPS under the basic and diluted computations for the three and six months ended June 30, 2026 is as follows:


	Three Months Ended June 30,		Six Months Ended June 30,
	2026
Net income	$	2,800	$	5,279
Preferred stock dividends and other (1)	(119)		(201)
Net income available to common stockholders	$	2,681	$	5,078
Weighted-average common shares outstanding — basic	1,735		1,740









Common stock equivalent shares related to stock incentive plans	4		5
Weighted-average common shares outstanding — diluted (2)	1,739		1,745
Basic earnings per share	$	1.55	$	2.92
Diluted earnings per share	$	1.54	$	2.91

(1) Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested participating restricted stock units.

(2) Antidilutive stock options and restricted stock units excluded from the calculation of diluted EPS totaled 10 million and 12 million for the three and six months ended June 30, 2026, respectively.

The computations of basic and diluted EPS for the three and six months ended June 30, 2025 are as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
	2025
	Common Stock		Nonvoting Common Stock		Consolidated Common Stock		Common Stock		Nonvoting Common Stock		Consolidated Common Stock
Basic earnings per share:
Numerator
Net income	$	2,126	$	—	$	2,126	$	4,017	$	18	$	4,035
Preferred stock dividends and other (1)	(149)		—		(149)		(261)		(1)		(262)
Net income available to common stockholders	$	1,977	$	—	$	1,977	$	3,756	$	17	$	3,773
Denominator
Weighted-average common shares outstanding — basic	1,817		—		1,817		1,807		51		1,819
Basic earnings per share	$	1.09	$	—	$	1.09	$	2.07	$	.33	$	2.07
Diluted earnings per share:
Numerator
Net income available to common stockholders	$	1,977	$	—	$	1,977	$	3,756	$	17	$	3,773
Reallocation of net income available to common stockholders as a result of conversion of nonvoting to voting shares	—		—		—		17		—		—
Allocation of net income available to common stockholders	$	1,977	$	—	$	1,977	$	3,773	$	17	$	3,773
Denominator
Weighted-average common shares outstanding — basic	1,817		—		1,817		1,807		51		1,819
Conversion of nonvoting shares to voting shares	—		—		—		12		—		—
Common stock equivalent shares related to stock incentive plans	5		—		5		6		—		6
Weighted-average common shares outstanding — diluted (2)	1,822		—		1,822		1,825		51		1,825
Diluted earnings per share	$	1.08	$	—	$	1.08	$	2.07	$	.33	$	2.07

(1) Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested restricted stock units.

(2) Antidilutive stock options and restricted stock units excluded from the calculation of diluted EPS totaled 9 million and 13 million for the three and six months ended June 30, 2025, respectively.

- 66 -

THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)

18. Regulatory Requirements

At June 30, 2026, CSC and its banking subsidiaries met all of their respective capital requirements. Regulatory capital and ratios for CSC (consolidated) and CSB are as follows:


	Actual				Minimum to be Well Capitalized				Minimum Capital Requirement
June 30, 2026	Amount		Ratio		Amount		Ratio		Amount		Ratio (1)
CSC
Common Equity Tier 1 Risk-Based Capital	$	36,538	24.4	%	N/A				$	6,751	4.5	%
Tier 1 Risk-Based Capital	42,751		28.5	%	N/A				9,002		6.0	%
Total Risk-Based Capital	42,792		28.5	%	N/A				12,002		8.0	%
Tier 1 Leverage	42,751		8.7	%	N/A				19,589		4.0	%
Supplementary Leverage Ratio	42,751		8.6	%	N/A				14,852		3.0	%
CSB
Common Equity Tier 1 Risk-Based Capital	$	27,085	30.1	%	$	5,840	6.5	%	$	4,043	4.5	%
Tier 1 Risk-Based Capital	27,085		30.1	%	7,188		8.0	%	5,391		6.0	%
Total Risk-Based Capital	27,124		30.2	%	8,985		10.0	%	7,188		8.0	%
Tier 1 Leverage	27,085		10.7	%	12,711		5.0	%	10,169		4.0	%





Supplementary Leverage Ratio	27,085		10.5	%	N/A				7,710		3.0	%

December 31, 2025
CSC
Common Equity Tier 1 Risk-Based Capital	$	36,081	30.4	%	N/A				$	5,345	4.5	%
Tier 1 Risk-Based Capital	42,844		36.1	%	N/A				7,127		6.0	%
Total Risk-Based Capital	42,894		36.1	%	N/A				9,503		8.0	%
Tier 1 Leverage	42,844		9.3	%	N/A				18,499		4.0	%
Supplementary Leverage Ratio	42,844		9.2	%	N/A				13,974		3.0	%
CSB
Common Equity Tier 1 Risk-Based Capital	$	28,126	35.9	%	$	5,088	6.5	%	$	3,523	4.5	%
Tier 1 Risk-Based Capital	28,126		35.9	%	6,262		8.0	%	4,697		6.0	%
Total Risk-Based Capital	28,163		36.0	%	7,828		10.0	%	6,262		8.0	%
Tier 1 Leverage	28,126		11.1	%	12,641		5.0	%	10,113		4.0	%
Supplementary Leverage Ratio	28,126		11.0	%	N/A				7,649		3.0	%

(1) Under risk-based capital rules, CSC and CSB are also required to maintain additional capital buffers above the regulatory minimum risk-based capital ratios. As of June 30, 2026 and December 31, 2025, CSC was subject to a stress capital buffer of 2.5% and CSB was required to maintain a capital conservation buffer of 2.5%. CSC and CSB are also required to maintain a countercyclical capital buffer above the regulatory minimum risk-based capital ratios, which was zero for both periods presented. If a buffer falls below the minimum requirement, CSC and CSB would be subject to increasingly strict limits on capital distributions and discretionary bonus payments to executive officers. At June 30, 2026 and December 31, 2025, the minimum capital ratio requirements for both CSC and CSB, inclusive of their respective buffers, were 7.0%, 8.5%, and 10.5% for Common Equity Tier 1 Risk-Based Capital, Tier 1 Risk-Based Capital, and Total Risk-Based Capital, respectively.

N/A Not applicable.

Based on its regulatory capital ratios at June 30, 2026 and December 31, 2025, CSB is considered well capitalized (the highest category) under its respective regulatory capital rules. There are no conditions or events since June 30, 2026 that management believes have changed CSB’s capital category.

CSC’s other banking subsidiaries are CSPB and Charles Schwab Trust Bank (Trust Bank). CSPB is a Texas-chartered state savings bank that provides banking and custody services, and Trust Bank is a Nevada state-chartered savings bank that provides trust and custody services. At June 30, 2026 and December 31, 2025, the balance sheets of CSPB and Trust Bank consisted primarily of investment securities. At June 30, 2026 and December 31, 2025, CSPB held total assets of $26.6 billion and $27.0 billion, respectively, and Trust Bank held total assets of $10.5 billion and $10.4 billion, respectively. Based on their regulatory capital ratios at June 30, 2026 and December 31, 2025, CSPB and Trust Bank are considered well capitalized under their respective regulatory capital rules.

- 67 -

THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)

As a securities broker-dealer, CS&Co is subject to the SEC’s Uniform Net Capital Rule. Net capital and net capital requirements for CS&Co are as follows:


	June 30, 2026		December 31, 2025
Net capital	$	16,124	$	13,188
Minimum dollar requirement	0.250		0.250
2% of aggregate debit balances	3,546		2,559
Net capital in excess of required net capital	12,578		10,629

Pursuant to the SEC’s Customer Protection Rule and other applicable regulations, Schwab had cash and investments segregated for the exclusive benefit of clients at June 30, 2026. The SEC’s Customer Protection Rule requires broker-dealers to segregate client fully-paid securities and cash balances not collateralizing margin positions and not swept to money market funds or bank deposit accounts. Amounts included in cash and investments segregated and on deposit for regulatory purposes represent actual balances on deposit. Cash and cash equivalents included in cash and investments segregated and on deposit for regulatory purposes are presented as part of Schwab’s cash balances in the condensed consolidated statements of cash flows.

19. Segment Information

Schwab’s two reportable segments are Investor Services and Advisor Services. Schwab structures the operating segments according to its clients and the services provided to those clients. The Investor Services segment provides retail brokerage, investment advisory, and banking and trust services to individual investors, retirement plan and business 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 to independent RIAs, independent retirement advisors, and recordkeepers. Revenues and expenses are attributed to the two segments based on which segment services the client. Schwab’s chief operating decision makers (CODMs) are the President and Chief Executive Officer, and the Managing Director and Chief Financial Officer.

The accounting policies of the segments are the same as those described in Item 8 – Note 2 in the 2025 Form 10-K. For the computation of its segment information, Schwab utilizes an activity-based costing model to allocate traditional income statement line item expenses (e.g., compensation and benefits, depreciation and amortization, and professional services) to the business activities driving segment expenses (e.g., client service, opening new accounts, or business development) and a funds transfer pricing methodology to allocate certain revenues.

The CODMs evaluate the performance of the segments on a pre-tax basis and use income before taxes on income to allocate resources, including employees and capital, to the segments during the annual budgeting process. The CODMs consider budget-to-actual variances on a monthly basis when making decisions about allocating resources to the segments throughout the year. Segment assets and liabilities are not used for evaluating segment performance or in deciding how to allocate resources to segments. There are no revenues from transactions between the segments.

- 68 -

THE CHARLES SCHWAB CORPORATION

Notes to Condensed Consolidated Financial Statements

(Tabular Amounts in Millions, Except Per Share Data, Ratios, or as Noted)

(Unaudited)

Financial information for the segments is presented in the following table:


	Investor Services				Advisor Services				Total
Three Months Ended June 30,	2026		2025		2026		2025		2026		2025
Net Revenues
Net interest revenue	$	2,575	$	2,244	$	782	$	578	$	3,357	$	2,822
Asset management and administration fees	1,349		1,144		476		426		1,825		1,570
Trading revenue	1,087		852		128		100		1,215		952
Bank deposit account fees	257		194		76		53		333		247
Other	260		201		82		59		342		260
Total net revenues	5,528		4,635		1,544		1,216		7,072		5,851
Expenses Excluding Interest
Compensation and benefits	1,399		1,191		391		345		1,790		1,536
Professional services	249		231		58		60		307		291
Occupancy and equipment	237		212		64		58		301		270
Advertising and market development	86		70		25		38		111		108
Communications	130		120		68		56		198		176
Depreciation and amortization	150		162		48		53		198		215
Amortization of acquired intangible assets	119		104		23		24		142		128
Regulatory fees and assessments	47		62		16		15		63		77
Other	246		209		47		38		293		247
Total expenses excluding interest	2,663		2,361		740		687		3,403		3,048
Income before taxes on income	$	2,865	$	2,274	$	804	$	529	$	3,669	$	2,803

Six Months Ended June 30,
Net Revenues
Net interest revenue	$	5,000	$	4,402	$	1,501	$	1,126	$	6,501	$	5,528
Asset management and administration fees	2,643		2,258		941		842		3,584		3,100
Trading revenue	2,067		1,657		237		203		2,304		1,860
Bank deposit account fees	483		385		145		107		628		492
Other	412		378		125		92		537		470
Total net revenues	10,605		9,080		2,949		2,370		13,554		11,450
Expenses Excluding Interest
Compensation and benefits	2,798		2,476		804		732		3,602		3,208
Professional services	498		445		112		115		610		560
Occupancy and equipment	460		427		126		117		586		544
Advertising and market development	165		134		47		70		212		204
Communications	243		233		118		96		361		329
Depreciation and amortization	303		327		96		105		399		432
Amortization of acquired intangible assets	228		210		46		48		274		258
Regulatory fees and assessments	106		132		32		34		138		166
Other	430		411		85		80		515		491
Total expenses excluding interest	5,231		4,795		1,466		1,397		6,697		6,192
Income before taxes on income	$	5,374	$	4,285	$	1,483	$	973	$	6,857	$	5,258

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