eTrade 2012 Annual Report Download - page 154

NOTE 11—SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND FHLB ADVANCES
AND OTHER BORROWINGS
Securities sold under agreements to repurchase, FHLB advances and other borrowings at December 31,
2012 and 2011 are shown in the following table (dollars in thousands):
FHLB Advances and
Other Borrowings
Repurchase
Agreements(1)
FHLB
Advances Other Total
Weighted
Average
Interest Rate
Years Ending December 31,
2013 $3,402,433 $ 170,000 $ 1,238 $3,573,671 0.45%
2014 352,228 — 210 352,438 0.75%
2015 200,000 100,000 — 300,000 1.28%
2016 200,000 250,000 — 450,000 1.68%
2017 300,000 400,000 — 700,000 0.76%
Thereafter — — 427,719 427,719 2.99%
Subtotal 4,454,661 920,000 429,167 5,803,828 0.83%
Fair value hedge adjustments — 37,121 — 37,121
Deferred costs — (125,372) — (125,372)
Total other borrowings
at December 31, 2012 $4,454,661 $ 831,749 $429,167 $5,715,577 0.83%
Total other borrowings
at December 31, 2011 $5,015,499 $2,302,695 $434,240 $7,752,434 1.74%
(1) The maximum amount at any month end for repurchase agreements was $5.0 billion and $5.9 billion for the year ended December 31,
2012 and 2011.
Securities Sold Under Agreements to Repurchase
Repurchase agreements are collateralized by fixed- and variable-rate mortgage-backed securities or
investment grade securities. The brokers retain possession of the securities collateralizing the repurchase
agreements until maturity of the repurchase agreement. At December 31, 2012, there were no counterparties with
whom the Company’s amount of risk exceeded 10% of its shareholders’ equity. During the year ended
December 31, 2012, the Company paid down in advance of maturity $100 million of its fixed-rate repurchase
agreements for which losses on early extinguishment of debt of $8.2 million was recorded. This loss was
recorded in the gains (losses) on early extinguishment of debt line item in the consolidated statement of income
(loss). The Company did not have any similar transactions for the years ended December 31, 2011 and 2010.
Below is a summary of repurchase agreements and collateral associated with the repurchase agreements at
December 31, 2012 (dollars in thousands):
Collateral
Repurchase Agreements
U.S. Government Sponsored
Enterprise Obligations
Contractual Maturity
Weighted
Average
Interest Rate Amount Amortized Cost Fair Value
Up to 30 days 0.42% $2,009,097 $2,104,931 $2,155,853
30 to 90 days 0.64% 682,633 712,991 730,216
Over 90 days 1.04% 1,762,931 1,848,053 1,892,702
Total 0.70% $4,454,661 $4,665,975 $4,778,771
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