eTrade 2008 Annual Report Download - page 79

The following table shows the cost basis and fair value of our mortgage-backed and investment securities
portfolio that the Company held and classified as available-for-sale (dollars in thousands):
December 31,
2008 2007 2006
Cost
Basis
Fair
Value
Cost
Basis
Fair
Value
Cost
Basis
Fair
Value
Mortgage-backed securities:
Backed by U.S. Government sponsored and federal
agencies $10,115,865 $10,110,813 $ 9,638,676 $ 9,330,129 $ 9,375,444 $ 9,109,307
Collateralized mortgage obligations and other 920,474 602,376 1,170,360 1,123,255 1,127,650 1,108,385
Total mortgage-backed securities 11,036,339 10,713,189 10,809,036 10,453,384 10,503,094 10,217,692
Investment securities:
Asset-backed securities ————2,163,538 2,161,728
Municipal bonds 100,706 79,606 320,521 314,348 620,261 632,747
Corporate bonds 25,454 12,801 36,557 35,279 105,692 104,518
Other debt securities — — 78,836 77,291 80,623 74,880
Publicly traded equity securities:
Preferred stock(1) — — 505,498 371,404 455,801 458,674
Corporate investments 532 498 1,460 1,271 12,040 24,139
Retained interest from securitizations — — 980 2,071 2,930 3,393
Total investment securities 126,692 92,905 943,852 801,664 3,440,885 3,460,079
Total available-for-sale securities $11,163,031 $10,806,094 $11,752,888 $11,255,048 $13,943,979 $13,677,771
(1) On January 1, 2008, the Company elected the fair value option for preferred stock in accordance with SFAS No. 159. As a result of this
election, preferred stock was classified on the balance sheet as trading securities during 2008; however, in the third quarter of 2008, all
preferred stock positions were sold.
The following table shows the scheduled maturities, carrying values and current yields for the Company’s
available-for-sale investment portfolio at December 31, 2008 (dollars in thousands):
Within One Year
After One But
Within Five Years
After Five But
Within Ten Years After Ten Years Total
Balance
Due
Weighted
Average
Yield
Balance
Due
Weighted
Average
Yield
Balance
Due
Weighted
Average
Yield
Balance
Due
Weighted
Average
Yield
Balance
Due
Weighted
Average
Yield
Mortgage-backed
securities:
Backed by U.S.
Government sponsored
and federal agencies $— N/A $— N/A $22,065 4.50% $10,093,800 5.18% $10,115,865 5.18%
Collateralized mortgage
obligations and other — N/A 15 8.33% 53,325 4.71% 867,134 5.40% 920,474 5.36%
Total mortgage-backed
securities — 15 75,390 10,960,934 11,036,339
Investment securities:
Municipal bonds(1) 6 1.50% 1 2.00% 2 2.00% 100,697 4.62% 100,706 4.62%
Corporate bonds 21 2.80% 18 1.48% 3 3.58% 25,412 4.95% 25,454 4.95%
Publicly traded equity
securities
Corporate investments(2) — N/A — N/A — N/A 532 (9.69)% 532 (9.69)%
Total investment
securities 27 19 5 126,641 126,692
Total
available-for-sale
securities $ 27 $ 34 $75,395 $11,087,575 $11,163,031
(1) Yields on tax-exempt obligations are computed on a tax-equivalent basis.
(2) Corporate investments have no stated maturity date.
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