eTrade 2000 Annual Report Download - page 81

4,183,684 2,161,670
Less allowance for loan losses (10,930 ) (7,161 )
Loans receivable-net $ 4,172,754 $ 2,154,509
Loans receivable held for sale are $95.4 million and $89.9 million at September 30, 2000 and 1999, respectively.
The largest concentrations of mortgage loans are located in California, New York and New Jersey, representing 30.0%, 7.3% and
5.3%, respectively, of the portfolio at September 30, 2000. Adjustable rate mortgages (ARM) composed 62.4%, or $2.6 billion, of the
gross loan portfolio as of September 30, 2000, while fixed rate loans represented the remaining $1.6 billion. This is compared to an
ARM/fixed ratio of 36.1%/63.9% at September 30, 1999. The weighted average maturity of mortgage loans secured by one- to
four-family residences is 329 months as of September 30, 2000. Additionally, all loans outstanding at September 30, 2000 and 1999
were serviced by other companies and as of September 30, 2000, the Company had commitments to purchase $21 million of fixed rate
and $496 million of adjustable rate mortgage loans.
The following is the relative breakout of non-performing loans, those delinquent greater than 90 days, at September 30, 2000 and
1999 (in thousands):
September 30,
2000 1999
First mortgage loans:
Secured by one- to four-family residences $ 11,391 $ 7,595
Secured by commercial real estate 657 664
Home equity lines of credit and second mortgage loans — 21
Other — 60
Total $ 12,048 $ 8,340
Interest income is not accrued for loans classified as non-performing and any income accrued through the initial 90 day delinquency is
reversed. Had these loans performed during 2000, 1999 and 1998 additional income of $845,000, $550,000 and $597,000 would have
been recognized, respectively. As of September 30, 2000 and 1999, there were no commitments to lend additional funds to these
borrowers.
Activity in the allowance for loan losses is summarized as follows (in thousands):
Years Ending September 30,
2000 1999 1998
Allowance for loan losses, beginning of the year $ 7,161 $ 4,715 $ 3,594
Provision for loan losses 4,003 2,783 905
Loan loss allowance acquired in the acquisition of DFC — — 724
Charge-offs, net (234 ) (337 ) (457 )
Allowance for loan losses, end of year $ 10,930 $ 7,161 $ 4,766
88
The table below presents impaired loans (in thousands):
Total
Recorded
Investment
in Impaired
Loans
Amount of
Specific
Reserves
Amount of
Recorded
Investment
Net of
Specific
Reserves
September 30, 2000:
Impaired loans:
Secured by one- to four-family residences $ 2,056 $ (88 ) $ 1,968
Secured by commercial real estate 657 (303 ) 354
Total $ 2,713 $ (391 ) $ 2,322
September 30, 1999:
Impaired loans:
2002. EDGAR Online, Inc.