To disentangle subprocesses of verbal working memory deficits in schizophrenia, long EEG epochs (>10 s) were recorded from 13 patients and 17 healthy adults during a visual word serial position test. ERP generator patterns were summarized by temporal PCA from reference-free current source density (CSD) waveforms to sharpen 31-channel topographies. Patients showed poorer performance and reduced left inferior parietotemporal P3 source. Build-up of mid-frontal negative slow wave (SW) in controls during item encoding, integration, and active maintenance was absent in patients, whereas a sustained mid-frontal SW sink during the retention interval was comparable across groups. Mid-frontal SW sinks (encoding and retention periods) and posterior SW sinks and sources (encoding only) were related to performance in controls only. Data suggest disturbed processes in a frontal-parietotemporal network in schizophrenia, affecting encoding and early item storage.