SECURITIES SOLD UNDER REPURCHASE AGREEMENTS AND OTHER BORROWINGS

12 Months Ended

Dec. 31, 2012

SECURITIES SOLD UNDER REPURCHASE AGREEMENTS AND OTHER BORROWINGS

SECURITIES SOLD UNDER REPURCHASE AGREEMENTS AND OTHER BORROWINGS

16. SECURITIES SOLD UNDER REPURCHASE AGREEMENTS AND OTHER BORROWINGS

Securities sold under repurchase agreements totaled $995.0 million and $1.02 billion as of December 31, 2012 and 2011, respectively. As of December 31, 2012, there was no short-term repurchase agreement outstanding. In comparison, there was $25.2 million of short-term repurchase agreements included in the December 31, 2011 balance. The interest rate on these short-term repurchase agreements was 0.57% as of December 31, 2011. During the first and fourth quarter of 2012, the Company modified $200.0 million and $150.0 million of long-term repurchase agreements, extending the term and reducing the rate of these agreements by 86 basis points and 195 basis points, respectively. As of December 31, 2012, all repurchase agreements are long-term with interest rates that are largely fixed, ranging from 2.54% to 5.01%. 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, 2012 and 2011:

	December 31, 2012			December 31, 2011
Year of Maturity	Amount		Rate	Amount		Rate
	(Dollars in thousands)
2012	$	—	—%	$	25,208	0.57%
2015	245,000		4.49%	245,000		4.49%
2016	350,000		4.96%	700,000		4.91%
2017	50,000		4.15%	50,000		4.15%
2022	350,000		3.53%	—		—%
Total	$	995,000	4.30%	$	1,020,208	4.66%

Total interest expense recorded on repurchase agreements amounted to $46.2 million, $48.6 million and $49.0 million for the years ended December 31, 2012, 2011 and 2010, respectively.

The Company also has master repurchase agreements with other major brokerage companies. The Company’s available borrowing capacity from repurchase agreements totaled $1.19 billion and $979.8 million at December 31, 2012 and 2011, respectively.

Other borrowings totaled $20.0 million as of December 31, 2012.  As of December 31, 2011, there were no other borrowings outstanding. The $20.0 million borrowing was a short term borrowing in the Company’s Hong Kong office with a maturity of two days and an annual rate of 0.25%.