eTrade 2012 Annual Report Download - page 93

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• Ginnie Mae participation certificates, guaranteed by the full faith and credit of the U.S.; and
• Collateralized mortgage obligations.
The majority of the investment securities portfolio is composed of agency debt securities guaranteed by the
Small Business Administration and agency debentures which are unsecured senior debt offered by Fannie Mae,
Freddie Mac and other government agencies.
Trading securities are carried at fair value with any realized or unrealized gains and losses reflected in our
consolidated statement of income (loss) as gains on loans and securities, net. Available-for-sale securities are
carried at fair value with the unrealized gains and losses reflected as a component of accumulated other
comprehensive loss. Held-to-maturity securities are carried at amortized cost based on the Company’s positive
intent and ability to hold these securities to maturity.
The following table shows the amortized cost and fair value of our mortgage-backed and investment
securities portfolio that the Company held and classified as available-for-sale and held-to-maturity (dollars in
millions):
December 31,
2012 2011 2010
Amortized
Cost Fair Value
Amortized
Cost Fair Value
Amortized
Cost Fair Value
Available-for-sale securities:
Residential mortgage-backed securities:
Agency mortgage-backed securities
and CMOs $11,881.2 $12,097.2 $13,772.1 $13,965.7 $13,017.8 $12,898.1
Non-agency CMOs 260.1 235.2 422.6 341.6 490.3 395.4
Total residential mortgage-backed
securities 12,141.3 12,332.4 14,194.7 14,307.3 13,508.1 13,293.5
Investment securities:
Agency debentures 516.0 528.0 743.3 731.2 1,324.5 1,269.6
Agency debt securities 525.4 546.8 541.0 554.2 187.6 187.5
Municipal bonds 30.2 31.3 42.3 41.1 42.4 37.3
Corporate bonds 5.5 4.5 25.4 17.7 25.3 17.8
Total investment securities 1,077.1 1,110.6 1,352.0 1,344.2 1,579.8 1,512.2
Total available-for-sale securities $13,218.4 $13,443.0 $15,546.7 $15,651.5 $15,087.9 $14,805.7
Held-to-maturity securities:
Residential mortgage-backed securities:
Agency mortgage-backed securities
and CMOs $ 7,887.5 $ 8,182.1 $ 5,296.5 $ 5,458.0 $ 1,928.6 $ 1,897.0
Investment securities:
Agency debentures 163.4 169.8 163.4 169.2 219.2 216.2
Agency debt securities 1,489.0 1,558.6 619.6 655.8 314.9 309.1
Total investment securities 1,652.4 1,728.4 783.0 825.0 534.1 525.3
Total held-to-maturity securities $ 9,539.9 $ 9,910.5 $ 6,079.5 $ 6,283.0 $ 2,462.7 $ 2,422.3
90