eTrade 2002 Annual Report Download - page 125
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Table of Contents
Index to Financial Statements
Beginning with the acquisition of E*TRADE Mortgage in February 2001, the Company has actively engaged in the origination and sale of
mortgages. In addition, the Bank sells loans originated by correspondents and has from time to time sold other loans that were originally
purchased from others. A summary of these activities are presented below (in thousands):
Year Ended December31, Three MonthsEnded December31,
2000 Year Ended September30,
2000
2002 2001
Loans sold:
Correspondent $ 6,011,964 $ 3,449,137 $ 5,062 $ 232,209
Origination $ 5,999,900 $ 4,450,854 $ — $ —
Gains on sale of loans:
Correspondent loan sales $ 26,105 $ 24,306 $ — $ 3,554
Origination loan sales $ 128,506 $ 95,478 $ — $ —
During fiscal 2002, the Company reclassified approximately $2.6 billion of loans held-for-investments to held-for-sale. Through December 31,
2002, approximately 70% of these loans had been sold or paid off.
The following is the relative breakout of non-performing loans at December 31, 2002 and 2001 (in thousands):
December31,
2002 2001
First mortgage loans:
Secured by one-to four-family residences $ 22,497 $ 20,595
Secured by commercial real estate 81 —
Automobiles 2,277 91
Recreational vehicles 1,486 —
Marine 94 —
Other 53 —
Total $ 26,488 $ 20,686
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 been current as of December 31, 2002, additional income of $1.4 million would have been recognized in fiscal 2002 and $1.3
million in fiscal 2001, $0.2 million for the three months ended December 31, 2000 and $0.8 million for fiscal 2000. In fiscal 2002 $0.6 million
of interest was recognized on loans that were in non-accrual at December 31, 2002. As of December 31, 2002, there were no commitments to
lend additional funds to any of these borrowers.
Activity in the allowance for loan losses is summarized as follows (in thousands):
Year Ended December31, ThreeMonths Ended
December31, 2000 Year Ended
September30, 2000
2002 2001
Allowance for loan losses, beginning of
period
$ 19,874 $ 12,565 $ 10,930 $ 7,161
Provision for loan losses 14,664 7,476 1,647 4,003
Acquired through acquisitions 14,428 4,699 — —
2003. EDGAR Online, Inc.