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The following table shows the scheduled maturities, carrying values and current yields for the Company’s
available-for-sale and held-to-maturity investment portfolio at December 31, 2010 (dollars in millions):
Within One Year One to Five Years Five to 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
Available-for-sale securities:
Residential mortgage-backed
securities:
Agency mortgage-backed
securities and CMOs $— — $ — — $468.3 3.37% $12,549.5 3.74% $13,017.8 3.73%
Non-agency CMOs — — — — 0.4 4.06% 489.9 4.44% 490.3 4.43%
Total residential
mortgage-backed
securities — — 468.7 13,039.4 13,508.1
Investment securities:
Debt securities:
Agency debentures — — 464.4 2.12% 185.0 4.13% 675.1 6.30% 1,324.5 4.29%
Other agency debt
securities — — — — 79.4 4.11% 108.2 3.13% 187.6 3.54%
Municipal bonds(1) — — — — — — 42.4 4.78% 42.4 4.78%
Corporate bonds — — — — — — 25.3 0.83% 25.3 0.83%
Total investment
securities — 464.4 264.4 851.0 1,579.8
Total available-for-sale
securities $— $464.4 $733.1 $13,890.4 $15,087.9
Held-to-maturity securities:
Residential mortgage-backed
securities:
Agency mortgage-backed
securities and CMOs $— — $ 6.0 2.50% $572.6 3.81% $ 1,350.0 3.92% $ 1,928.6 3.89%
Investment securities:
Debt securities:
Agency debentures — — 219.2 2.00% — — — — 219.2 2.00%
Other agency debt
securities — — — — 150.0 3.22% 164.9 3.65% 314.9 3.44%
Total investment
securities — 219.2 150.0 164.9 534.1
Total held-to-maturity
securities $— $225.2 $722.6 $ 1,514.9 $ 2,462.7
(1) Yields on tax-exempt obligations are computed on a tax-equivalent basis.
Borrowings
Deposits represent our most significant source of funding. In addition, we borrow from the FHLB and sell
securities under repurchase agreements.
We are a member of, and own capital stock in, the FHLB system. The FHLB provides us with reserve credit
capacity and authorizes us to apply for advances based on the security of pledged home mortgages and other
assets—principally securities that are obligations of, or guaranteed by, the U.S. Government—provided we meet
certain creditworthiness standards. At December 31, 2010, our outstanding advances from the FHLB totaled $2.3
billion at interest rates ranging from 0.18% to 5.56% and at a weighted-average rate of 3.13%.
We also raise funds by selling securities under agreements to repurchase the same or similar securities. The
counterparties to these agreements hold the securities in custody. We treat repurchase agreements as borrowings
and secure them with designated fixed- and variable-rate securities. We also participate in the Federal Reserve
Bank’s term investment option and treasury, tax and loan borrowing programs. We use the proceeds from these
transactions to meet our cash flow or asset/liability matching needs.
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