eTrade 2000 Annual Report Download - page 82

Secured by one- to four-family residences $ 1,138 $ (113 ) $ 1,025
Secured by commercial real estate 664 (293 ) 371
Total $ 1,802 $ (406 ) $ 1,396
The average recorded investment in impaired loans for the years ended September 30, 2000 and 1999 was $2.1 million and $1.4
million, respectively. The Company’ s charge-off policy for impaired loans is consistent with its charge-off policy for other loans;
impaired loans are charged-off when, in the opinion of management, all principal and interest due on the impaired loan will not be
fully collected. Consistent with the Company’ s method for non-accrual loans, payments received on impaired loans are recognized as
interest income or applied to principal when it is doubtful that full payment will be collected. For the years ended September 30, 2000
and 1999, the Company had no restructured loans. 7. INVESTMENTS
Investments are comprised of trading and available-for-sale debt and equity securities, as defined under the provisions of SFAS No.
115, Accounting for Certain Investments in Debt and Equity Securities. Also included in investments are investments in entities in
which the Company owns between 20% and 50%, which are accounted for under the equity method.
The carrying amounts of investments are shown below (in thousands):
September 30,
2000 1999
Trading securities $ 3,867 $ 38,269
Available-for-sale investment securities 841,002 684,055
Equity method and other investments 140,349 106,505
Total investments $ 985,218 $ 828,829
For the years ended September 30, 2000, 1999 and 1998, the Company recognized $4.1 million, $1.4 million and $569,000,
respectively, in realized gains from the sale of trading assets, as well as $195,000, ($1.3 million) and ($612,000), respectively, in
unrealized appreciation (depreciation) of trading assets.
The cost basis and estimated fair values of available-for-sale investment securities at September 30, 2000 and 1999 are shown below
(in thousands):
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Values
September 30, 2000:
Equity securities $ 36,189 $ 186,302 $ (2,779 ) $ 219,712
Corporate bonds 288,245 2,739 (10,117 ) 280,867
US Government obligations 33,255 18 (427 ) 32,846
Money market funds 191,506 175 (315 ) 191,366
Commercial paper 66,617 61 (110 ) 66,568
Municipal bonds 15,005 40 (1,099 ) 13,946
Other investments 35,979 11 (293 ) 35,697
Total $ 666,796 $ 189,346 $ (15,140 ) $ 841,002
September 30, 1999:
Equity securities $ 42,971 $ 282,297 $ (50 ) $ 325,218
Corporate bonds 157,530 235 (7,723 ) 150,042
US Government obligations 59,541 360 (426 ) 59,475
Money market funds 58,250 489 (236 ) 58,503
Commercial paper 46,499 391 (188 ) 46,702
Municipal bonds 30,539 126 (1,275 ) 29,390
Other investments 14,882 8 (165 ) 14,725
Total $ 410,212 $ 283,906 $ (10,063 ) $ 684,055
89
The contractual maturities of available-for-sale debt securities at September 30, 2000 are shown below (in thousands):
2002. EDGAR Online, Inc.