eTrade 2006 Annual Report Download - page 49
Download and view the complete annual report
Please find page 49 of the 2006 eTrade annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39 -
40 -
41 -
42 -
43 -
44 -
45 -
46 -
47 -
48 -
49 -
50 -
51 -
52 -
53 -
54 -
55 -
56 -
57 -
58 -
59 -
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
 |
 |
Available-for-Sale Mortgage-Backed and Investment Securities
Available-for-sale securities are summarized as follows (dollars in thousands):
December 31, Variance
2006 2005 2006 vs. 2005
Mortgage-backed securities:
Backed by U.S. government sponsored and Federal
agencies $ 9,109,307 $ 9,427,521 (3)%
Collateralized mortgage obligations and other 1,108,385 995,891 11 %
Total mortgage-backed securities 10,217,692 10,423,412 (2)%
Investment securities:
Asset-backed securities 2,161,728 1,365,754 58 %
Publicly traded equity securities:
Preferred stock 458,674 288,365 59 %
Corporate investments 24,139 147,400 (84)%
FHLB stock 244,212 198,700 23 %
Other 815,538 339,807 140 %
Total investment securities 3,704,291 2,340,026 58 %
Total available-for-sale securities $13,921,983 $12,763,438 9 %
Available-for-sale securities represented 26% and 29% of total assets at December 31, 2006 and 2005,
respectively. Available-for-sale securities increased 9% to $13.9 billion at December 31, 2006 compared to
December 31, 2005, due primarily to the growth in our asset-backed securities portfolio. We evaluate our
available-for-sale securities in light of changing market conditions and other factors and, where appropriate, take
steps intended to improve our overall position. We determined that we would not sell our mortgage-backed and
asset-backed securities at similar levels as 2005 because we focused on growing our balance sheet.
As interest rates increase, the fair value of fixed-rate available-for-sale securities decreases and vice versa.
The fair value of the portfolio will be adversely impacted in 2007 if long-term interest rates continue to rise. Net
unrealized gains and losses in available-for-sale securities are included in shareholders’ equity as accumulated
other comprehensive income or loss, net of tax.
Deposits
Deposits are summarized as follows (dollars in thousands):
December 31, Variance
2006 2005 2006 vs. 2005
Sweep deposit accounts $10,837,124 $ 7,733,267 40 %
Money market and savings accounts 7,634,241 4,635,866 65 %
Certificates of deposit(1) 4,737,253 2,703,605 75 %
Brokered certificates of deposit(2) 483,777 484,612 (0)%
Checking accounts 378,617 390,665 (3)%
Total deposits $24,071,012 $15,948,015 51 %
(1) Includes retail certificates of deposit including retail brokered certificates of deposit.
(2) Includes institutional certificates of deposit.
Deposits represented 49% and 39% of total liabilities at December 31, 2006 and 2005, respectively.
Deposits increased $8.1 billion to $24.1 billion at December 31, 2006 compared to December 31, 2005, driven by
46