eTrade 2004 Annual Report Download - page 24

Table of Contents
Index to Financial Statements
addition, we had unrealized trading assets appreciation of $2.5 million and $4.8 million for 2004 and 2003, respectively, and depreciation of
$0.9 million for 2002.
Our investments classified as available-for-sale are carried at estimated fair value with the unrealized gains and losses reflected as a
component of accumulated other comprehensive income. The following table shows the cost basis and fair value of our mortgage-backed
securities and investment portfolio that the Bank held and classified as available-for-sale (in thousands):
In addition to the available-for-sale investment securities listed in the preceding table, we had an investment in Federal Home Loan Bank
(“FHLB”) stock, as required of members of the FHLB System. The stock is recorded at cost, which approximates fair value. The balance of
FHLB stock was $92.0 million at December 31, 2004, $79.2 million at December 31, 2003 and $80.7 million at December 31, 2002.
The following table shows the scheduled maturities, carrying values and current yields for the Bank’s available-for-sale and trading
investment portfolio at December 31, 2004 (dollars in thousands):
18
December 31,
2004 2003 2002
Cost Basis Fair Value Cost Basis Fair Value Cost Basis Fair Value
Mortgage
-
backed securities
$
9,204,871
$
9,052,069
$
7,313,908
$
7,157,389
$
6,940,380
$
6,932,394
Investment securities:
Asset
-
backed securities
2,789,471
2,796,429
2,000,239
2,010,729
750,221
737,582
Municipal bonds
136,362
136,671
44,906
45,646
32,005
32,561
Corporate bonds
87,959
84,515
122,583
116,030
377,731
352,590
Other debt securities
79,467
74,700
86,217
79,637
1,093
939
Publicly traded equity securities
274,294
274,736
161,000
160,892
135,000
134,538
Total investment securities
3,367,553
3,367,051
2,414,945
2,412,934
1,296,050
1,258,210
Total available
-
for
-
sale securities
$
12,572,424
$
12,419,120
$
9,728,853
$
9,570,323
$
8,236,430
$
8,190,604
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
Mortgage
-
backed securities:
Federal National Mortgage Association
$
— —
%
$
— —
%
$
5,149,991
5.03
%
$
5,149,991
5.03
%
Government National Mortgage Association — —
%
— —
%
2,767,087
5.11
%
2,767,087
5.11
%
Federal Home Loan Mortgage Corporation
—
—
%
3
10.00
%
21,054
4.50
%
21,057
4.50
%
Collateralized mortgage obligations — —
%
— —
%
1,785,290
5.09
%
1,785,290
5.09
%
Private issuer and other
26
3.05
%
3,487
4.23
%
29,345
5.71
%
32,858
5.71
%
Total mortgage
-
backed securities
26
3.05
%
3,490
9,752,767
9,756,283
Investment securities:
Asset
-
backed securities
45,975
4.27
%
149,990
3.94
%
2,593,506
4.70
%
2,789,471
4.66
%
Municipal bonds
(1)
1,235
4.71
%
2,585
7.26
%
132,542
4.49
%
136,362
4.54
%
Corporate debt — —
%
— —
%
87,959
3.58
%
87,959
3.58
%
Other debt securities — —
%
79,467
4.38
%
— —
%
79,467
4.38
%
Publicly traded equity securities
(2)
—
—
%
—
—
%
274,294
5.13
%
274,294
5.13
%
Total investment securities
47,210
232,042
3,088,301
3,367,553
Total available
-
for
-
sale and trading securities
$
47,236
$
235,532
$
12,841,068
$
13,123,836
(1)
Yields on tax-exempt obligations are computed on a tax-equivalent basis.
(2)
Preferred stock in Freddie Mac and Fannie Mae, no stated maturity date.