SECURITIES PURCHASED UNDER RESALE AGREEMENTS

12 Months Ended

Dec. 31, 2013

SECURITIES PURCHASED UNDER RESALE AGREEMENTS

SECURITIES PURCHASED UNDER RESALE AGREEMENTS

NOTE 4—SECURITIES PURCHASED UNDER RESALE AGREEMENTS

Securities purchased under resale agreements (“resale agreements”) decreased to $1.30 billion as of December 31, 2013, compared with $1.45 billion at December 31, 2012. The decrease as of December 31, 2013 reflects pay downs and maturities of resale agreements of $600.0 million, offset by additions of $450.0 million entered into during 2013.

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 $21.2 million, $20.4 million, and $19.2 million, for the years ended December 31, 2013, 2012 and 2011, respectively.