eTrade 2009 Annual Report Download - page 89

The following table shows the cost basis and fair value of our mortgage-backed and investment securities
portfolio that the Company held and classified as available-for-sale (dollars in millions):
December 31,
2009 2008 2007
Cost
Basis
Fair
Value
Cost
Basis
Fair
Value
Cost
Basis
Fair
Value
Residential mortgage-backed securities:
Agency mortgage-backed securities and CMOs $ 8,945.4 $ 8,966.9 $10,115.8 $10,110.8 $ 9,638.7 $ 9,330.1
Non-agency CMOs and other 590.2 375.1 920.5 602.4 1,170.3 1,123.3
Total residential mortgage-backed securities 9,535.6 9,342.0 11,036.3 10,713.2 10,809.0 10,453.4
Investment securities:
Debt securities:
Agency debentures 3,928.9 3,920.0 ————
Municipal bonds 42.5 39.0 100.7 79.6 320.5 314.3
Corporate bonds 25.4 17.8 25.5 12.8 36.6 35.3
Other debt securities ————78.8 77.3
Publicly traded equity securities:
Preferred stock(1) ————505.5 371.4
Corporate investments 0.2 0.9 0.5 0.5 1.5 1.3
Retained interest from securitizations ———— 1.02.0
Total investment securities 3,997.0 3,977.7 126.7 92.9 943.9 801.6
Total available-for-sale securities $13,532.6 $13,319.7 $11,163.0 $10,806.1 $11,752.9 $11,255.0
(1) On January 1, 2008, the Company elected the fair value option for preferred stock in accordance with fair value measurement accounting
guidance. As a result of this election, preferred stock was classified on the balance sheet as trading securities during 2008; however, in
the third quarter of 2008, all preferred stock positions were sold.
The following table shows the scheduled maturities, carrying values and current yields for the Company’s
available-for-sale investment portfolio at December 31, 2009 (dollars in millions):
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
Residential mortgage-backed
securities:
Agency mortgage-backed
securities and CMOs $— N/A $ 29.5 5.50% $257.2 4.02% $8,658.7 4.73% $ 8,945.4 4.71%
Non-agency CMOs and other — N/A — N/A 0.5 6.14% 589.7 4.67% 590.2 4.67%
Total residential
mortgage-backed
securities — 29.5 257.7 9,248.4 9,535.6
Investment securities:
Debt securities:
Agency debentures — N/A 3,253.0 2.44% 675.9 4.18% — N/A 3,928.9 2.74%
Municipal bonds(1) — N/A — N/A — N/A 42.5 4.78% 42.5 4.78%
Corporate bonds — N/A — N/A — N/A 25.4 0.83% 25.4 0.83%
Publicly traded equity
securities:
Corporate investments — N/A — N/A — N/A 0.2 N/A 0.2 N/A
Total investment
securities — 3,253.0 675.9 68.1 3,997.0
Total available-for-sale
securities $— $3,282.5 $933.6 $9,316.5 $13,532.6
(1) Yields on tax-exempt obligations are computed on a tax-equivalent basis.
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