eTrade 2005 Annual Report Download - page 169

Table of Contents
The Sweep Deposit Account (“SDA”) is a sweep product that transfers brokerage customer balances. The Bank holds these funds as
customer deposits in Federal Deposit Insurance Corporation (“FDIC”)-insured Negotiable Order of Withdrawal (“NOW”) and money
market deposit accounts.
NOTE 15—SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER BORROWINGS BY BANK
SUBSIDIARY
The maturities of borrowings at December31, 2005 and total borrowings at December31, 2004 are shown below (dollars in thousands):
Repurchase
Agreement
Other Borrowings by
Bank Subsidiary
Total
Weighted
Average
InterestRate
FHLB
Advances
Other
Due in:
2006
$
9,746,122
$
1,910,000
$
5,440
$
11,661,562
4.20
%
2007
50,478
700,000
—
750,478
4.45
%
2008
—
50,000
—
50,000
3.82
%
2009
100,145
96,106
—
196,251
3.15
%
2010
—
100,000
—
100,000
4.38
%
Thereafter
1,204,797
1,000,000
305,046
2,509,843
3.80
%
Total borrowings at December 31, 2005
$
11,101,542
$
3,856,106
$
310,486
$
15,268,134
4.13
%
Total borrowings at December 31, 2004
$
9,897,191
$
1,487,841
$
272,891
$
11,657,923
2.17
%
Securities Sold Under Agreements to Repurchase
The Company sells securities under agreements to repurchase similar securities (“Repurchase Agreements”.) Repurchase Agreements
are collateralized by fixed- and variable-rate mortgage-backed securities or investment grade securities. Repurchase Agreements are
treated as financings for financial statement purposes and obligations to repurchase securities sold are reflected as borrowings in the
consolidated balance sheets. The brokers retain possession of the securities collateralizing the repurchase agreements until maturity.
At December31, 2005, there were no counterparties with whom the Company’s amount at risk exceeded 10% of its shareholders’ equity.
Other Borrowings by Bank Subsidiary
FHLB Advances
—The Company had $2.2 billion floating-rate and $1.7 billion fixed-rate FHLB advances at December31, 2005. The
floating-rate advances adjust quarterly based on the LIBOR. The Company is required to be a member of the FHLB System and
maintain a FHLB investment at least equal to the greater of: one percent of the unpaid principal balance of its residential mortgage
loans; one percent of 30 percent of its total assets; or one-twentieth of its outstanding FHLB advances. In addition, the Company must
maintain qualified collateral equal to 85 to 90 percent of its advances, depending on the collateral type. These advances are secured
with specific mortgage loans and mortgage-backed securities. At December31, 2005 and 2004, the Company pledged $9.3 billion and
$3.4 billion, respectively, of the one- to four-family first-mortgage loans, HELOCs and second mortgage loans as collateral.
Other
—ETB Holdings (“ETBH”) raises capital through the formation of trusts, which sell trust preferred stock in the capital markets.
The capital securities are mandatorily redeemable in whole at the due date, which is generally 30 years after issuance. Each trust issued
Floating Rate Cumulative Preferred Securities, at par with a liquidation amount of $1,000 per capital security. ETBH uses the proceeds
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2006. EDGAR Online, Inc.