eTrade 2006 Annual Report Download - page 31

The following table presents enterprise average balance sheet data and enterprise income and expense data
for our operations, as well as the related net interest spread, and has been prepared on the same basis as our
disclosures with respect to E*TRADE Bank under the SEC’s Industry Guide 3, “Statistical Disclosure by Bank
Holding Companies” (dollars in thousands):
Year Ended December 31,
2006 2005 2004
Average
Balance
Operating
Interest
Inc./Exp.
Average
Yield /
Cost
Average
Balance
Operating
Interest
Inc./Exp.
Average
Yield /
Cost
Average
Balance
Operating
Interest
Inc./Exp.
Average
Yield /
Cost
Enterprise interest-earning
assets:
Loans, net $22,193,663 $1,364,873 6.15% $15,488,527 $ 828,717 5.35% $10,065,174 $ 490,550 4.87%
Margin receivables 6,679,510 474,500 7.10% 2,540,174 159,442 6.28% 2,048,411 116,533 5.69%
Mortgage-backed and related
available-for-sale securities 11,543,546 590,512 5.12% 9,421,988 401,782 4.26% 8,300,536 331,460 3.99%
Available-for-sale investment
securities 3,068,474 193,583 6.31% 2,715,985 140,041 5.16% 3,151,515 127,429 4.04%
Trading securities 132,454 11,388 8.60% 268,092 12,342 4.60% 712,819 22,692 3.18%
Cash and cash equivalents(1) 1,226,548 54,492 4.44% 1,509,313 46,331 3.07% 1,550,163 27,095 1.75%
Stock borrow and other 531,809 36,780 6.92% 441,189 20,942 4.75% 389,313 11,991 3.08%
Total enterprise interest-
earning assets $45,376,004 2,726,128 6.01% $32,385,268 1,609,597 4.97% $26,217,931 1,127,750 4.30%
Enterprise interest-bearing
liabilities:
Retail deposits(5) $20,407,534 506,491 2.48% $12,951,635 216,632 1.67% $11,720,333 173,508 1.48%
Brokered certificates of
deposit(6) 535,835 24,726 4.61% 450,441 15,680 3.48% 358,665 9,172 2.56%
Free credits 6,329,407 71,899 1.14% 3,375,608 19,034 0.56% 2,930,601 5,912 0.20%
Repurchase agreements and
other borrowings 10,980,134 549,085 5.00% 10,115,764 374,337 3.70% 8,139,736 259,196 3.18%
Federal Home Loan Bank
(“FHLB”) advances 3,488,184 165,545 4.75% 3,260,556 126,495 3.88% 1,168,519 50,055 4.28%
Stock loan and other 1,067,726 34,317 3.21% 464,303 7,838 1.69% 586,478 3,610 0.62%
Total enterprise interest-
bearing liabilities $42,808,820 1,352,063 3.16% $30,618,307 760,016 2.48% $24,904,332 501,453 2.01%
Enterprise net interest income/
spread $1,374,065 2.85% $ 849,581 2.49% $ 626,297 2.29%
Reconciliation from enterprise net interest income to net operating interest income (dollars in thousands):
Year Ended December 31,
2006 2005 2004
Enterprise net interest income(2) $ 1,374,065 $ 849,581 $626,297
Taxable equivalent interest
adjustment (19,297) (10,523) (7,013)
Stock conduit, net(3) 427 1,159 1,074
Customer cash held by third
parties(4) 44,837 30,883 14,784
Net operating interest income $ 1,400,032 $ 871,100 $635,142
(1) Includes segregated cash balances.
(2) Enterprise net interest income is taxable equivalent basis net operating interest income excluding corporate interest income and corporate
interest expense, stock conduit interest income and expense and interest earned on customer cash held by third parties. Management
believes this non-GAAP measure is useful to analysts and investors as it is a measure of the net operating interest income generated by
our operations.
(3) Net operating interest income earned on average stock conduit assets of $0.3 billion, $0.6 billion and $0.8 billion for the years ended
December 31, 2006, 2005 and 2004, respectively.
(4) Includes interest earned on average customer assets of $3.6 billion, $2.7 billion and $3.2 billion for the year ended December 31, 2006,
2005 and 2004, respectively, held by parties outside E*TRADE Financial, including third party money market funds and sweep deposit
accounts at unaffiliated financial institutions.
(5) Includes retail certificates of deposit including retail brokered certificates of deposit.
(6) Includes institutional certificates of deposit.
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