SECURITIES PURCHASED UNDER RESALE AGREEMENTS

12 Months Ended

Dec. 31, 2012

SECURITIES PURCHASED UNDER RESALE AGREEMENTS

SECURITIES PURCHASED UNDER RESALE AGREEMENTS

4. SECURITIES PURCHASED UNDER RESALE AGREEMENTS

Securities purchased under resale agreements (“resale agreements”) increased to $1.45 billion as of December 31, 2012, compared with $786.4 million at December 31, 2011. The increase as of December 31, 2012 reflects additions of resale agreements of $1.40 billion entered into during 2012 offset with pay downs and maturities of $736.4 million.

Resale agreements are recorded at the amounts at which the securities were acquired. The Company’s policy is to obtain possession of securities purchased under resale agreements that are equal to or greater than the principal amount loaned. The market value of the underlying securities, which collateralize the related receivable on resale agreements, is monitored, including accrued interest. Additional collateral may be requested from the counterparty when determined to be appropriate.

Total interest income on resale agreements amounted to $20.4 million, $19.2 million, and $14.2 million, for the years ended December 31, 2012, 2011 and 2010, respectively.