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Table of Contents
Index to Financial Statements
Realized Gains (Losses)
Realized gains and losses from the sales and other-than-temporary impairment of available-for-sale investment securities, including
mortgage-backed securities, are as follows (in thousands):
NOTE 7—OTHER INVESTMENTS
Year Ended December 31,
2004
2003
2002
Mortgage
-
backed securities:
Realized gains
$
105,876
$
138,781
$
90,693
Realized losses
(47,785
)
(47,046
)
(24,014
)
Impairment on purchased interest
-
only securities
(12,400
)
—
(
16,603
)
Net realized gains on mortgage-backed securities included in gain on
sales of loans held
-
for
-
sale and securities, net
$
45,691
$
91,735
$
50,076
Other bank investments:
Realized gains
$
17,801
$
22,951
$
6,586
Realized losses
(4,459
)
(6,300
)
(1,827
)
Impairment on asset
-
backed securities
(1,558
)
(2,198
)
—
Net realized gains included in gain on sales of loans held-for-sale and
securities, net
$
11,784
$
14,453
$
4,759
Corporate investments:
Realized gains
(1)
$
134,679
$
171,653
$
144
Realized losses
(2,145
)
(15,471
)
(3,582
)
Impairment charges
(2)
—
(
209
)
—
Net realized gains (losses) included in gain (loss) on sale and
impairment of investments
$
132,534
$
155,973
$
(3,438
)
(1)
The 2004 amount includes dividend income of $2.3 million.
(2)
The 2003 amount represents other-than-temporary declines in the value of certain available-for-sale corporate investments.
Other investments are composed of equity method and other investments. Investments in entities in which the Company owns between
20% and 50% or has the ability to exercise significant influence are generally accounted for using the equity method. Investments in securities
in which there is a less than 20% ownership and the Company does not exercise significant influence are carried at cost.
The carrying amounts of other investments are shown below (in thousands):
82
December 31,
2004
2003
Joint ventures
$
17,573
$
16,386
Venture capital funds
23,901
20,168
Other investments
4,795
12,718
Total other investments
$
46,269
$
49,272