18. SECURITIES SOLD UNDER REPURCHASE AGREEMENTS
Securities sold under repurchase agreements totaled $1.02 billion and $1.08 billion as of December 31, 2011 and 2010, respectively. These balances included $25.2 million and $88.5 million in short-term repurchase agreements as of December 31, 2011 and December 31, 2010, respectively. The interest rates on these short-term repurchase agreements were 0.57% and 0.54% as of December 31, 2011 and December 31, 2010, respectively. The remaining repurchase agreements are long-term with interest rates that are largely fixed, ranging from 4.15% to 5.13% as of December 31, 2011. The counterparties have the right to a quarterly call for many of the repurchase agreements.
Long-term repurchase agreements are accounted for as collateralized financing transactions and recorded at the amounts at which the securities were sold. The collateral for these agreements consist of U.S. Government agency and U.S. Government sponsored enterprise debt and mortgage-backed securities. The Company may have to provide additional collateral for the repurchase agreements, as necessary.
The following table provides information on securities sold under repurchase agreements as of December 31, 2011 and 2010:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2011 |
|
December 31, 2010 |
|
Year of Maturity |
|
Amount |
|
Rate |
|
Amount |
|
Rate |
|
|
|
(Dollars in thousands)
|
|
2011 |
|
$ |
— |
|
|
— |
% |
$ |
88,545 |
|
|
0.54 |
% |
2012 |
|
|
25,208 |
|
|
0.57 |
% |
|
— |
|
|
— |
% |
2015 |
|
|
245,000 |
|
|
4.49 |
% |
|
245,000 |
|
|
4.49 |
% |
2016 |
|
|
700,000 |
|
|
4.91 |
% |
|
700,000 |
|
|
4.91 |
% |
2017 |
|
|
50,000 |
|
|
4.15 |
% |
|
50,000 |
|
|
4.15 |
% |
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
1,020,208 |
|
|
4.66 |
% |
$ |
1,083,545 |
|
|
4.42 |
% |
|
|
|
|
|
|
|
|
|
|
Total interest expense recorded on repurchase agreements amounted to $48.6 million, $49.0 million and $49.7 million for the years ended December 31, 2011, 2010 and 2009, respectively.
The Company also has master repurchase agreements with other major brokerage companies. The Company's available borrowing capacity from repurchase agreements totaled $979.8 million and $1.21 billion at December 31, 2011 and 2010, respectively. |