eTrade 2004 Annual Report Download - page 47

Table of Contents
Index to Financial Statements
fund balances to the Bank, which were previously held in money market funds not on our balance sheets. On average, our retail banking
customers maintained 1.49 accounts with a balance of $20,370 at December 31, 2004. Savings and transactional deposits increased from
$316.8 million at December 31, 2003 to $431.0 million at December 31, 2004, a 36% increase. Retail certificates of deposit decreased from
$3.2 billion at December 31, 2003 to $2.1 billion at December 31, 2004, or 36%. Brokered certificates of deposit increased from $292.5 million
at December 31, 2003 to $294.6 million at December 31, 2004 or 1%.
We also rely on borrowed funds, such as FHLB advances and securities sold under agreements to repurchase to provide liquidity for the
Bank. Total banking-related borrowings increased 80% from $6.5 billion at December 31, 2003 to $11.7 billion at December 31, 2004. At
December 31, 2004, the Bank had approximately $6.2 billion in additional borrowing capacity.
Contractual Obligations
The following summarizes our contractual obligations at December 31, 2004 and the effect such obligations are expected to have on our
liquidity and cash flow in future periods (dollars in thousands):
At December 31, 2004, the Bank also had commitments of $1.5 billion of unused lines of credit available to customers under HELOCs
and $1.5 billion of unused credit card lines. Since these lines may be used at the customers’ discretion, there are no scheduled maturities or
payments.
41
Due in
Thereafter
Total
2005 2006 2007 2008 2009
General obligations:
Convertible and senior notes
(1)
$
42,287
$
42,287
$
217,268
$
31,177
$
31,177
$
445,553
$
809,749
Operating lease payments
22,185
21,793
21,042
20,176
18,110
29,649
132,955
Venture capital funding commitments
(2)
11,425
10,000
9,750
— — —
31,175
Facility consolidation obligations
(3)
9,927
8,272
5,201
3,818
3,003
1,787
32,008
Capital lease payments
163
— — — — —
163
Other commitments
(4)
26,200
— — — — —
26,200
Total general obligations
112,187
82,352
253,261
55,171
52,290
476,989
1,032,250
Banking obligations:
Mandatorily redeemable preferred securities
(1)
15,776
15,776
15,776
15,776
15,776
624,329
703,209
Certificates of deposit
(5)(6)
1,639,196
385,203
248,345
94,032
73,275
31,318
2,471,369
Other borrowings by bank subsidiary
(6)
10,264,844
335,247
276,884
234,642
222,723
336,698
11,671,038
Loan commitments:
Originate loans
(7)
566,941
— — — — —
566,941
Purchase loans
178,248
—
—
—
—
—
178,248
Sell mortgages
(92,451
)
— — — — — (
92,451
)
Security commitments:
Purchase securities
372,014
—
—
—
—
—
372,014
Sell securities
(856,059
)
— — — — — (
856,059
)
Total banking obligations
12,088,509
736,226
541,005
344,450
311,774
992,345
15,014,309
Total contractual obligations
$
12,200,696
$
818,578
$
794,266
$
399,621
$
364,064
$
1,469,334
$
16,046,559
(1)
Includes annual interest or dividend payments; does not assume early redemption under current call provisions.
(2)
Estimated based on investment plans of the venture capital funds.
(3)
Included in the facilities restructuring accrual.
(4)
Payments related to litigation and acquisitions.
(5)
Does not include demand deposit, money market or passbook savings accounts, as there are no maturities and/or scheduled contractual payments.
(6)
Includes annual interest based on the contractual features of each transaction, using market rates at December 31, 2004. Interest rates were assumed to remain flat over the life of all
adjustable rate instruments.
(7)
Contains optional commitment to originate.