eTrade 2002 Annual Report Download - page 28

Table of Contents
Index to Financial Statements
The following table classifies certificates of deposit of $100,000 or more, by time remaining until maturity, as of December 31, 2002 (in
thousands):
Certificates of Deposit
Three months or less $ 169,564
Three through six months 142,625
Six through twelve months 411,613
Over twelve months 398,370
Total $ 1,122,172
Borrowings
Although deposits represent a significant component of our current funds, we also borrow from the FHLB and sell securities under repurchase
agreements.
We are a member of the FHLB system, which, among other things, functions in a reserve credit capacity for savings institutions. This
membership requires us to own capital stock in the FHLB. It also authorizes us to apply for advances on the security of FHLB stock and various
home mortgages and other assets—principally securities that are obligations of, or guaranteed by, the United States government—provided that
we meet certain creditworthiness standards. As of December 31, 2002, our outstanding advances from the FHLB totaled $1.31billion at interest
rates ranging from 1.4% to 6.96% and at a weighted average rate of 1.89%.
We also borrow funds by selling securities to nationally recognized investment banking firms under agreements to repurchase the same
securities. The investment banking firms hold the securities in custody. We treat repurchase agreements as borrowings and secure them with
designated fixed- and variable-rate securities. We also participate in the Federal Reserve Bank’ s special direct investment and treasury, tax and
loan borrowing programs. We use the proceeds of these transactions to meet our cash flow or asset/liability matching needs.
The following table presents information regarding repurchase agreements and other short-term borrowings for the dates indicated (dollars in
thousands):
December31, September30, 2000
2002 2001
Weighted average balance during the year $ 3,835,442 $ 3,180,272 $ 1,471,435
Weighted average interest rate during the year 3.91 % 5.94 % 6.39 %
Maximum month-end balance during the year $ 6,623,010 $ 4,162,231 $ 2,173,410
Mortgage-backed securities underlying the agreements
as of the end of the year:
Carrying value, including accrued interest $ 5,472,384 $ 1,815,738 $ 1,303,517
Estimated market value $ 5,452,720 $ 1,807,115 $ 1,289,313
Other securities and mortgage loans underlying the
agreements as of the end of the year:
Carrying value, including accrued interest $ 400,736 $ 1,185,707 $ 648,433
Estimated market value $ 398,857 $ 1,179,834 $ 644,317
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