SECURITIES SOLD UNDER REPURCHASE AGREEMENTS AND OTHER BORROWINGS

12 Months Ended

Dec. 31, 2013

SECURITIES SOLD UNDER REPURCHASE AGREEMENTS AND OTHER BORROWINGS

SECURITIES SOLD UNDER REPURCHASE AGREEMENTS AND OTHER BORROWINGS

NOTE 16—SECURITIES SOLD UNDER REPURCHASE AGREEMENTS AND OTHER BORROWINGS

Securities sold under repurchase agreements remained at $995.0 million as of December 31, 2013 and 2012, respectively. As of December 31, 2013, the Company did not modify any long-term repurchase agreements. In comparison, the Company modified $200.0 million and $150.0 million of long-term repurchase agreements during the first and fourth quarter of 2012, extending the term and reducing the rate of these agreements by 86 basis points and 195 basis points, respectively. As of December 31, 2013, all repurchase agreements are long-term with interest rates that are largely fixed, ranging from 2.49% 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, 2013 and 2012:

	December 31, 2013				December 31, 2012
	Amount			Rate	Amount		Rate
Year of Maturity	(Dollars in thousands)
2015	$	245,000		4.49%	$	245,000	4.49%
2016	250,000			5.01%	350,000		4.96%
2017	50,000			4.15%	50,000		4.15%
2022	350,000			3.51%	350,000		3.53%
2023	100,000			2.49%	—		—
Total	$		995,000	4.06%	$	995,000	4.30%

Total interest expense recorded on repurchase agreements amounted to $41.4 million, $46.2 million and $48.6 million for the years ended December 31, 2013, 2012 and 2011, respectively.

The Company also has master repurchase agreements with other major brokerage companies. The Company’s available borrowing capacity from repurchase agreements totaled $811.1 million and $1.19 billion at December 31, 2013 and 2012, respectively.

In 2013, there were no other borrowings. In comparison, other borrowings totaled $20.0 million as of December 31, 2012. 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%.