eTrade 2007 Annual Report Download - page 71

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 (dollars in thousands):
December 31,
2007 2006 2005
Cost
Basis
Fair
Value
Cost
Basis
Fair
Value
Cost
Basis
Fair
Value
Mortgage-backed securities:
Backed by U.S. Government sponsored and
Federal Agencies $ 9,638,676 $ 9,330,129 $ 9,375,444 $ 9,109,307 $ 9,687,666 $ 9,427,521
Collateralized mortgage obligations and other 1,170,360 1,123,255 1,127,650 1,108,385 1,014,582 995,891
Total mortgage-backed securities 10,809,036 10,453,384 10,503,094 10,217,692 10,702,248 10,423,412
Investment securities:
Asset-backed securities — — 2,163,538 2,161,728 1,376,315 1,365,754
Municipal bonds 320,521 314,348 620,261 632,747 168,682 169,684
Corporate bonds 36,557 35,279 105,692 104,518 74,931 72,760
Other debt securities 78,836 77,291 80,623 74,880 78,989 73,485
Publicly traded equity securities:
Preferred stock 505,498 371,404 455,801 458,674 290,240 288,365
Corporate investments 1,460 1,271 12,040 24,139 53,152 147,400
Retained interest from securitizations 980 2,071 2,930 3,393 22,444 23,878
Total investment securities 943,852 801,664 3,440,885 3,460,079 2,064,753 2,141,326
Total available-for-sale securities $11,752,888 $11,255,048 $13,943,979 $13,677,771 $12,767,001 $12,564,738
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, 2007 (dollars in thousands):
Within One Year
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
Balance
Due
Weighted
Average
Yield
Mortgage-backed securities:
Backed by U.S. Government
sponsored and Federal
agencies $ — N/A $— N/A $ — N/A $ 9,638,676 5.06% $ 9,638,676 5.06%
Collateralized mortgage
obligations and other — N/A 28 8.33% 169 9.79% 1,170,163 5.42% 1,170,360 5.42%
Total mortgage-backed
securities — 28 169 10,808,839 10,809,036
Investment securities:
Municipal bonds(1) 266 3.24% 211 2.56% 12 4.06% 320,032 4.59% 320,521 4.59%
Corporate debt 11,211 2.38% — N/A — N/A 25,346 5.71% 36,557 4.69%
Other debt securities 609 3.47% 249 4.00% 77,978 4.38% — N/A 78,836 4.37%
Publicly traded equity securities
Preferred stock(2) — N/A — N/A — N/A 505,498 5.42% 505,498 5.42%
Corporate investments(3) — N/A — N/A — N/A 1,460 4.42% 1,460 4.42%
Retained interests from
securitizations — N/A — N/A — N/A 980 2.00% 980 2.00%
Total investment securities 12,086 460 77,990 853,316 943,852
Total available-for-sale
securities $12,086 $488 $78,159 $11,662,155 $11,752,888
(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.
(3) Corporate investments, no stated maturity date.
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