Investing in our communities - About Schwab

1 Investing in our communities Charles Schwab Bank is committed to Investing in the communities in which we work and live, and to helping people take ownership of their financial futures. Our commitment to supporting our local communities is guided by the Schwab principles of service, collaboration, innovation, and client loyalty to create and preserve sustainable outcomes that promote economic security. The Bank's Community Development Group support affordable housing, small business (CDG) oversees our Community Reinvestment and sustainable job creation, and financial Act program, which serves the credit needs education.

2 By collaborating with some of the of the communities in which we operate, most innovative and dedicated community including low- and moderate-income neighbor- partners, we are creating financial security hoods, consistent with safe and sound and stability for under-resourced families and operations. Our thoughtful program offers helping transform historically marginalized loans, investments, grants and services that communities in California and Nevada. Since its inception in 2004, Charles Schwab Bank has invested, lent and granted nearly $ billion to underserved communities , including: $1 billion to $46 million to $ million to $734 million home affordable housing small business financial education mortgage loans and job creation and other causes to low- and moderate-income households SALE.

3 2. Pathways to entrepreneurship The Bank supports the creation of sustainable jobs and businesses through our robust Community Development Financial Institution (CDFI) lending platform. CDFIs are specialized mission-driven financial intermediaries that take a market-based approach to delivering new sources of capital into lower-income and underserved neighborhoods that have historically lacked access to conventional financing. We actively seek CDFI partners that are pioneering innovation in the small business Founded in 1994, Opportunity Fund helps lending industry. In 2015, the Bank provided residents of underserved communities a $10 million loan used to support the micro by driving economic mobility and building and small business lending activities of the stronger communities through award-winning and innovative Opportunity entrepreneurship, education, and sound Fund, a leading microfinance provider in financial habits.

4 Opportunity Fund is a California. Opportunity Fund believes that California nonprofit corporation and CDFI. access to credit and a reason to save build whose mission is to create and sustain jobs pathways to entrepreneurship and education and businesses by providing micro and that break the cycle of poverty. small business loans and matched savings programs to low-income entrepreneurs and businesses located in low- and moderate- In 2016, the Opportunity Fund: income areas that cannot qualify for traditional Lent $65 million in 2,188 new bank loans. small business loans Created and sustained 31,494 jobs through its small business lending program Lent $31 million in community based real estate projects Granted $1 million in matching funds for 500 new savings accounts for low-income students pursuing a college degree 3.

5 Seeding savings for youth Federal Home Loan Bank of San Francisco competitive grant program to establish the Since day one, the Bank has been committed infrastructure to further scale online financial to making Investing more accessible and education opportunities in Reno and promoting financial literacy to help people Las Vegas. take ownership of their futures. The Bank's commitment to helping youth establish good financial habits led to a partnership with In 2016 MyPath: MyPath, a San Francisco-based nonprofit that Served 4,500 youth incorporates savings, banking and credit- building pathways to help under-resourced Partnered with 50+ employment partners and six credit unions youth open bank accounts and establish savings plans.

6 Operating in eightcities in Missouri, Nevada, Washington, and California Since 2011, the Bank has funded $265,000 Helped 96% of youth participants in grants to MyPath, including $45,000 in two reach their savings goal seed grants to further expand the program beyond the San Francisco Bay Area to Youth participants saved 34% of their income communities in Reno and Las Vegas, Nevada. MyPath also received two Bank-sponsored grant awards totaling $52,000 through a 4. Creating affordable housing opportunities A high priority for the Bank is addressing the persistent lack of affordable housing, particularly in high cost areas.

7 Even properties originally created to assist and house low- income renters can become unaffordable over time after affordability covenants, made in connection with the property's development, expire. As a result, long-time lower income residents are slowly displaced and families are forced to seek new housing, often in places far from their support network and places of employment. This cycle occurs repeatedly over time, particularly in gentrifying neighborhoods the purchase, HPET commits to maintaining in our nation's cities. long-term affordability and provides services to tenants to expand educational opportunities, To both create and preserve affordable housing provide financial security, and offer access to for lower income populations, the Bank seeks health and wellness resources.

8 Out innovative investments that deliver on our commitment to the communities in which To date, HPET has invested $67 million in 12. we live and work, such as our investment in multifamily residential properties, providing Housing Partnership Equity Trust (HPET). In 2,600 homes for low-income families. 2016, the Bank invested $10 million in HPET, a mission-driven private Real Estate Investment The Housing Partnership Equity Trust Trust. Formed in 2013 by 12 of the nation's has enabled nonprofit affordable housing strongest nonprofit affordable housing developers to: developers, HPET creates a perpetual capital source that can compete with for-profit Provide affordable housing to 2,600.

9 Investors to purchase multifamily residential families properties. Purchased 12 multifamily residential properties These nonprofit developers have always had an advantage due to their local market Secured 14 investors knowledge and presence, and having the Invested $67 million into Bank's capital available for rapid deployment preserving affordable housing opportunities helps them purchase properties that are located near jobs, schools, transportation, and other critical community services. Following 5. Brokerage Products: Not FDIC Insured No Bank Guarantee May Lose Value Charles Schwab Bank and Charles Schwab & Co.

10 , Inc. are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Brokerage products offered by Charles Schwab & Co., Inc. are not insured by the FDIC, are not deposits or obligations of Charles Schwab Bank, and are subject to investment risk, including the possible loss of principal invested. Charles Schwab & Co., Inc. does not solicit, offer, endorse, negotiate, or originate any mortgage loan products and is neither a licensed mortgage broker nor a licensed mortgage lender. Deposit and other lending products and services are offered by Charles Schwab Bank, Member FDIC and an Equal Housing Lender.