eTrade 2012 Annual Report Download - page 94

Download and view the complete annual report

Please find page 94 of the 2012 eTrade annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 253

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213
  • 214
  • 215
  • 216
  • 217
  • 218
  • 219
  • 220
  • 221
  • 222
  • 223
  • 224
  • 225
  • 226
  • 227
  • 228
  • 229
  • 230
  • 231
  • 232
  • 233
  • 234
  • 235
  • 236
  • 237
  • 238
  • 239
  • 240
  • 241
  • 242
  • 243
  • 244
  • 245
  • 246
  • 247
  • 248
  • 249
  • 250
  • 251
  • 252
  • 253

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, 2012 (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 $— — $ 66.6 3.59% $ 635.2 2.35% $11,179.4 3.31% $11,881.2 3.26%
Non-agency CMOs — — — — — — 260.1 3.18% 260.1 3.18%
Total residential
mortgage-backed
securities — 66.6 635.2 11,439.5 12,141.3
Investment securities:
Agency debentures — — — — 32.0 5.18% 484.0 3.08% 516.0 3.19%
Agency debt securities — — — — 406.1 3.02% 119.3 2.79% 525.4 2.97%
Municipal bonds(1) — — — — — — 30.2 4.80% 30.2 4.80%
Corporate bonds — — — — — — 5.5 0.81% 5.5 0.81%
Total investment
securities — — 438.1 639.0 1,077.1
Total available-for-sale
securities $— $ 66.6 $1,073.3 $12,078.5 $13,218.4
Held-to-maturity securities:
Residential mortgage-backed
securities:
Agency mortgage-backed
securities and CMOs $— — $159.1 2.62% $2,109.3 3.17% $ 5,619.1 3.52% $ 7,887.5 3.41%
Investment securities:
Agency debentures — — 163.4 2.00% — — — — 163.4 2.00%
Agency debt securities — — 0.1 4.50% 786.4 3.01% 702.5 2.75% 1,489.0 2.89%
Total investment
securities — 163.5 786.4 702.5 1,652.4
Total held-to-maturity
securities $— $322.6 $2,895.7 $ 6,321.6 $ 9,539.9
(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, 2012, outstanding advances from the FHLB totaled
$920.0 million at interest rates ranging from 0.28% to 0.76% and at a weighted-average rate of 0.47%.
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
91