Charles Schwab 2013 Annual Report Download - page 75

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THE CHARLES SCHWAB CORPORATION
Notes to Consolidated Financial Statements
(Tabular Amounts in Millions, Except Per Share Data, Option Price Amounts, Ratios, or as Noted)
- 64 -
A summary of securities with unrealized losses, aggregated by category and period of continuous unrealized loss, is as
follows:
Less than 12 months
12 months or longer Total
Fair Unrealized Fair Unrealized Fair Unrealized
December 31, 2013 Value Losses Value Losses Value Losses
Securities available for sale:
U.S agency mortgage-backed securities $ 5,044 $ 47 $ 93 $ 2 $ 5,137 $ 49
Asset-backed securities 6,391 33 591 4 6,982 37
Corporate debt securities 1,802 14 499 1 2,301 15
U.S. agency notes 3,636 104 - - 3,636 104
Certificates of deposit - - 299 2 299 2
N
o
n
-agency residential mortgage-backed
securities 89 2 374 32 463 34
Total $ 16,962 $ 200 $ 1,856 $ 41 $ 18,818 $ 241
Securities held to maturity:
U.S. agency mortgage-backed securities $ 19,175 $ 698 $ 2,345 $ 223 $ 21,520 $ 921
N
o
n
-agency commercial mortgage-backed
securities 630 43 260 25 890 68
Total $ 19,805 $ 741 $ 2,605 $ 248 $ 22,410 $ 989
Total securities with unrealized losses (1) $ 36,767 $ 941 $ 4,461 $ 289 $ 41,228 $ 1,230
(1) The number of investment positions with unrealized losses totaled 273 for securities available for sale and 193 for
securities held to maturity.
Less than 12 months
12 months or longer Total
Fair Unrealized Fair Unrealized Fair Unrealized
December 31, 2012 Value Losses Value Losses Value Losses
Securities available for sale:
Asset-backed securities $ - $ - $ 801 $ 2 $ 801 $ 2
Corporate debt securities 878 2 - - 878 2
Certificates of deposit 599 1 - - 599 1
U.S. agency notes 2,102 3 - - 2,102 3
N
o
n
-agency residential mortgage-backed
securities 46 1 549 64 595 65
Total $ 3,625 $ 7 $ 1,350 $ 66 $ 4,975 $ 73
Securities held to maturity: 
U.S. agency mortgage-backed securities $ 2,680 $ 19 $ - $ - $ 2,680 $ 19
Other securities 240 1 - - 240 1
Total $ 2,920 $ 20 $ -$ - $ 2,920 $ 20
Total securities with unrealized losses (1) $ 6,545 $ 27 $ 1,350 $ 66 $ 7,895 $ 93
(1) The number of investment positions with unrealized losses totaled 139 for securities available for sale and 24 for
securities held to maturity.
Management evaluates whether securities available for sale and securities held to maturity are other-than-temporarily
impaired (OTTI) on a quarterly basis as described in note “2 – Summary of Significant Accounting Policies.”
Non-agency residential mortgage-backed securities include securities collateralized by loans that are considered to be
“Prime” (defined as loans to borrowers with a Fair Isaac Corporation (FICO) credit score of 620 or higher at origination), and
“Alt-A” (defined as Prime loans with reduced documentation at origination). Management determined that it does not expect
to recover all of the amortized cost of certain of its Alt-A and Prime residential mortgage-backed securities and therefore