eTrade 2004 Annual Report Download - page 90

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Table of Contents
Index to Financial Statements
Based on its evaluation, the Company recorded an other-than-temporary charge of $14.0 million for 2004, for its asset- and mortgage-
backed securities and interest-only securities. The Company also recognized $4.4 million of other-than-temporary impairments for 2004, from
retained beneficial interests in securitized receivables held by a subsidiary, ETCF Asset Funding Corporation.
Publicly Traded Equity Securities
Publicly traded equity securities include investments in preferred stock of Fannie Mae, Freddie Mac, Softbank investment Corporation
(“SBI”) and Archipelago Holdings, Incorporated (“Archipelago”). Fair value of Fannie Mae was $187.6 million and $136.3 million at
December 31, 2004 and 2003, respectively, with an unrealized loss of $0.7 million and an unrealized gain of $1.3 million, in 2004 and 2003,
respectively. Fair value of Freddie Mac was $87.0 million and $24.6 million at December 31, 2004 and 2003, respectively, with an unrealized
gain of $1.1 million and an unrealized loss of $1.4 million, in 2004 and 2003, respectively. Fair value of SBI was $78.6 million and $216.8
million at December 31, 2004 and 2003, with unrealized gains of $66.3 million and $178.4 million respectively. Fair value of Archipelago was
$11.3 million at December 31, 2004 with unrealized gain of $5.6 million. During 2004 and 2003, the Company recognized gains of
$130.6 million and $151.7 million, respectively on sales of SBI, reducing its ownership from 9.07% to 2.93%.
Contractual Maturities
The contractual maturities of available-for-sale debt securities, including mortgage-backed securities, at December 31, 2004 are shown
below (in thousands):
The Company pledged $10.1 billion at December 31, 2004 and $5.7 billion at December 31, 2003 of mortgage-backed securities as
collateral for repurchase agreements, short-term borrowings, derivative instruments and FHLB advances.
81
Amortized
Cost
Estimated
Fair Values
Due within one year
$
61
$
56
Due within one to five years
47,695
47,824
Due within five to ten years
235,653
231,702
Due after ten years
12,015,443
11,865,524
Total
$
12,298,852
$
12,145,106