eTrade 2012 Annual Report Download - page 59

securities borrowed balances we hold as an asset. The excess represents customer cash that we are required by
our regulators to segregate for the exclusive benefit of our brokerage customers.
Securities
Trading, available-for-sale and held-to-maturity securities are summarized as follows (dollars in millions):
Variance
December 31, 2012 vs. 2011
2012 2011 Amount %
Trading securities $ 101.3 $ 54.4 $ 46.9 86%
Available-for-sale securities:
Residential mortgage-backed securities:
Agency mortgage-backed securities and CMOs $12,097.2 $13,965.7 $(1,868.5) (13)%
Non-agency CMOs 235.2 341.6 (106.4) (31)%
Total residential mortgage-backed securities 12,332.4 14,307.3 (1,974.9) (14)%
Investment securities 1,110.6 1,344.2 (233.6) (17)%
Total available-for-sale securities $13,443.0 $15,651.5 $(2,208.5) (14)%
Held-to-maturity securities:
Residential mortgage-backed securities:
Agency mortgage-backed securities and CMOs $ 7,887.5 $ 5,296.5 $ 2,591.0 49%
Investment securities 1,652.4 783.0 869.4 111%
Total held-to-maturity securities $ 9,539.9 $ 6,079.5 $ 3,460.4 57%
Total securities $23,084.2 $21,785.4 $ 1,298.8 6%
Securities represented 49% and 45% of total assets at December 31, 2012 and 2011, respectively. The
decline in available-for-sale securities during the year ended December 31, 2012 was due primarily to a decrease
of $1.9 billion in agency mortgage-backed securities and CMOs. We sold agency mortgage-backed securities and
CMOs to reduce asset balances driven primarily by the reduction of $2.0 billion in wholesale borrowings, $1.5
billion of which was due to deleveraging initiatives.
The increase in held-to-maturity securities was due primarily to an increase of $2.6 billion in agency
mortgage-backed securities and CMOs. The purchases of securities were driven primarily by the increase in
customer deposits during the first nine months of 2012, which we invested in available-for-sale and held-to-
maturity securities.
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