eTrade 2009 Annual Report Download - page 129

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In the normal course of business, the Company makes various commitments to extend credit and incur
contingent liabilities that are not reflected in the consolidated balance sheet. Changes in the economy or interest
rates may influence the impact that these commitments and contingencies have on the Company in the future.
The Company does not estimate the fair value of those commitments. The Company has the right to cancel these
commitments in certain circumstances and has closed a significant amount of lines of credit in recent periods. As
of December 31, 2009, the Company had $1.3 billion of unfunded commitments to extend credit. Information
related to such commitments and contingent liabilities is detailed in Note 22—Commitments, Contingencies and
Other Regulatory Matters.
NOTE 6—AVAILABLE-FOR-SALE MORTGAGE-BACKED AND INVESTMENT SECURITIES
The amortized cost basis and fair value of available-for-sale mortgage-backed and investment securities are
shown in the following tables (dollars in thousands):
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses Fair Value
December 31, 2009:
Residential mortgage-backed securities:
Agency mortgage-backed securities and CMOs $ 8,945,396 $85,184 $ (63,704) $ 8,966,876
Non-agency CMOs and other 590,215 17 (215,069) 375,163
Total residential mortgage-backed
securities 9,535,611 85,201 (278,773) 9,342,039
Investment securities:
Debt securities:
Agency debentures 3,928,927 5,883 (14,799) 3,920,011
Municipal bonds 42,474 — (3,484) 38,990
Corporate bonds 25,422 6 (7,605) 17,823
Total debt securities 3,996,823 5,889 (25,888) 3,976,824
Publicly traded equity securities:
Corporate investments 173 676 — 849
Total investment securities 3,996,996 6,565 (25,888) 3,977,673
Total available-for-sale securities $13,532,607 $91,766 $(304,661) $13,319,712
December 31, 2008:
Residential mortgage-backed securities:
Agency mortgage-backed securities $10,115,865 $82,663 $ (87,715) $10,110,813
Non-agency CMOs and other 920,474 14 (318,112) 602,376
Total residential mortgage-backed
securities 11,036,339 82,677 (405,827) 10,713,189
Investment securities:
Debt securities:
Municipal bonds 100,706 1 (21,101) 79,606
Corporate bonds 25,454 14 (12,667) 12,801
Total debt securities 126,160 15 (33,768) 92,407
Publicly traded equity securities:
Corporate investments 532 285 (319) 498
Total investment securities 126,692 300 (34,087) 92,905
Total available-for-sale securities $11,163,031 $82,977 $(439,914) $10,806,094
126