eTrade 2008 Annual Report Download - page 133

NOTE 14—SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER
BORROWINGS
The maturities of borrowings at December 31, 2008 and total borrowings at December 31, 2008 and 2007
are shown below (dollars in thousands):
Repurchase
Agreements
Other Borrowings
Total
Weighted
Average
Interest Rate
FHLB
Advances Other
Years Ending December 31,
2009 $4,730,601 $1,850,000 $ 21,228 $ 6,601,829 2.89%
2010 1,350,678 150,000 1,357 1,502,035 3.84%
2011 — — 111 111 4.69%
2012 100,000 350,000 — 450,000 4.60%
2013 100,000 100,000 — 200,000 4.49%
Thereafter 1,100,000 1,453,600 427,481 2,981,081 4.12%
Total borrowings at December 31,
2008 $7,381,279 $3,903,600 $450,177 $11,735,056 3.42%
Total borrowings at December 31,
2007 $8,932,693 $6,967,406 $479,098 $16,379,197 4.98%
Securities Sold Under Agreements to Repurchase
The Company sells repurchase agreements which are collateralized by fixed- and variable-rate mortgage-
backed securities or investment grade securities. Repurchase agreements are treated as secured borrowings for
financial statement purposes and obligations to repurchase securities sold are reflected as borrowings in the
consolidated balance sheet. The brokers retain possession of the securities collateralizing the repurchase
agreements until maturity. At December 31, 2008, the Company had $312.2 million and $268.5 million of
collateral in excess of the repurchase agreement liability with Cantor Fitzgerald and Citigroup, respectively. The
weighted average maturity of the repurchase agreements with these counterparties was approximately one year
and six years for Cantor Fitzgerald and Citigroup, respectively. There were no other counterparties in which the
amount of collateral in excess of the repurchase agreement liability exceeded 10% of shareholders’ equity.
Below is a summary of repurchase agreements and collateral associated with the repurchase agreements at
December 31, 2008 (dollars in thousands):
Repurchase Agreements
Collateral
U.S. Government Sponsored
Enterprise Obligations
Collateralized Mortgage
Obligations and Other
Contractual Maturity
Weighted
Average
Interest Rate Amount Amortized Cost Fair Value Amortized Cost Fair Value
Up to 30 days 2.84% $3,017,075 $3,146,230 $3,144,535 $ — $ —
30 to 90 days 2.24% 746,948 881,621 867,950 — —
Over 90 days 3.28% 3,617,256 3,975,995 3,959,534 463,358 325,354
Total 2.99% $7,381,279 $8,003,846 $7,972,019 $463,358 $325,354
Other Borrowings
FHLB Advances—The Company had $0.3 billion floating-rate and $3.6 billion fixed-rate FHLB advances at
December 31, 2008. The floating-rate advances adjust quarterly based on the LIBOR. As a condition of its
membership in the FHLB Atlanta, the Company is required to maintain a FHLB stock investment currently equal
to the lesser of: a percentage of 0.2% of total Bank assets; or a dollar cap amount of $25 million. Additionally,
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