A bank built around retirement-plan infrastructure
Charles Schwab Trust Bank is a relatively young institution inside a much older financial group. The parent’s 2019 annual report says it established the bank in 2018 as a Nevada-chartered savings bank to provide trust and custody services. The FDIC records July 2, 2018 as its establishment date and identifies the active institution under certificate 59108. Its current directory city is Westlake, Texas. A main-office address does not determine the state that issued the charter. [1] [2]
Three banks do not mean one balance sheet
The June 2026 parent filing continues to call Charles Schwab Trust Bank a Nevada state-chartered savings bank. It is distinct from Charles Schwab Bank, SSB and Charles Schwab Premier Bank, SSB. The filing describes Trust Bank’s assets as primarily investment securities and says it was well capitalized under applicable regulatory rules at June 30. That is a dated regulatory classification, not a promise about future returns or an assurance that all products offered by affiliated companies have deposit insurance. [3]
The service behind a workplace retirement account
For retirement plans using independent providers, Schwab’s service description assigns directed trust and custody to Charles Schwab Trust Bank, brokerage to Charles Schwab & Co., Inc., administration to the recordkeeper and investment-selection oversight to the adviser. That division of work matters: the institution safeguarding or processing plan assets is not necessarily the party selecting investments. The offering includes trading and recordkeeping connections and trust-and-custody reporting. Its value is administrative as well as financial, because a retirement plan needs reliable records and movement of assets across several providers. [4]
Deposits are only one kind of client property
The workplace disclosure identifies Charles Schwab Trust Bank as a provider of trust, custody and deposit services. It separately identifies brokerage and other service providers. A custody relationship and a deposit account therefore should not be treated as interchangeable. Securities held for a retirement plan remain investments with their own risks; calling the provider a bank does not turn those securities into insured deposits. The disclosure establishes legal roles, but does not provide a stand-alone count of Trust Bank clients or a trust-fee profit measure. [5]
The June balance sheet contained no loans
The bank-only FDIC data reported no gross or net loans at either June date. June 2026 securities were $9.207 billion, compared with $8.243 billion a year earlier; cash and balances due from depository institutions were $847.952 million. The table’s earnings figures cover January through June. The absence of a loan book explains why ordinary loan- comparisons offer little insight into this charter. It does not mean the bank has no interest-rate, investment, or operational risk. [6]
Scroll horizontally to see all columns.
| Bank-only measure | June 2026 | June 2025 |
|---|---|---|
| Assets | $10,508.989 million | $9,667.226 million |
| Deposits | $9,677.383 million | $8,855.589 million |
| Net loans | $0.000 million | $0.000 million |
| Book equity | $808.594 million | $783.648 million |
| Net income, January–June | $107.355 million | $95.708 million |
Cash placement creates funding and potential conflicts
The Cash Features Program disclosure identifies The Charles Schwab Corporation as the owner of three separate affiliated banks, including Trust Bank. It explains that banks may use swept deposits to fund investments and earn the difference between asset income and the interest credited to depositors. It also describes compensation for administrative services and the group’s financial incentives in cash placement. Those incentives are disclosed features of the arrangement; they are not evidence that any particular client was placed in an unsuitable product. The available cash feature depends on the account and program. [7]
A deposit-funded securities bank
June 2026 deposits included $1.507 billion of noninterest-bearing balances and an estimated $520.652 million above applicable deposit-insurance coverage. The bank reported no brokered deposits and no Federal Home Loan Bank advances. Its leverage capital ratio was 10.93%. These regulatory categories describe reported funding at one date, not the maturity or withdrawal behavior of every account. In a securities-heavy bank, changes in interest rates and customer cash choices can matter even when conventional loan losses are absent. [8]
A retirement savings option within the broader service
Schwab markets Bank Savings to retirement plans as a capital-preservation option associated with Charles Schwab Trust Bank. Its description also says custody fees are reduced for plans using that product as their only capital-preservation option. This connects deposit gathering to the economics of retirement-plan servicing, rather than to a conventional street-corner lending branch. The page is a product description, not evidence of the number of participating plans or a measured funding advantage. The available disclosures support the model but leave the separate contribution of trust fees and deposit spreads unresolved. [9]
Sources
- Charles Schwab: 2019 Form 10-K, establishment of Trust Bank in 2018Filing / reportBack to text: ↑
- FDIC institution directory: certificate 59108, October 2, 2026 indexOfficial sourceBack to text: ↑
- Charles Schwab: June 30, 2026 Form 10-Q, Trust Bank charter and regulatory statusFiling / reportBack to text: ↑
- Schwab Retirement Business Services: roles of bank, broker, recordkeeper and adviserSourceBack to text: ↑1↑2
- Schwab Workplace Financial Services: legal provider disclosuresSourceBack to text: ↑
- FDIC bank-only financials: certificate 59108, June 30, 2026 and June 30, 2025; dollar fields in thousandsOfficial sourceBack to text: ↑
- Schwab: Cash Features Program disclosure, affiliated banks and sweep-account economicsSourceBack to text: ↑
- FDIC bank-only funding and capital: certificate 59108, June 30, 2026 and June 30, 2025Official sourceBack to text: ↑
- Schwab: Bank Savings for retirement plansSourceBack to text: ↑