eTrade 2007 Annual Report Download - page 49
Download and view the complete annual report
Please find page 49 of the 2007 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
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
-
185
-
186
-
187
-
188
-
189
-
190
-
191
-
192
-
193
-
194
-
195
-
196
-
197
-
198
-
199
-
200
-
201
-
202
-
203
-
204
-
205
-
206
-
207
-
208
-
209
-
210
 |
 |
Deposits
Deposits are summarized as follows (dollars in thousands):
December 31,
Variance
2007 vs. 2006
2007 2006 Amount %
Sweep deposit accounts $10,112,123 $10,837,124 $ (725,001) (7)%
Money market and savings accounts 10,028,115 7,634,241 2,393,874 31 %
Certificates of deposit(1) 4,156,674 4,737,253 (580,579) (12)%
Brokered certificates of deposit(2) 1,092,225 483,777 608,448 126 %
Checking accounts 495,618 378,617 117,001 31 %
Total deposits $25,884,755 $24,071,012 $1,813,743 8 %
(1) Includes retail brokered certificates of deposit.
(2) Includes institutional brokered certificates of deposit.
Deposits represented 48% and 49% of total liabilities at December 31, 2007 and 2006, respectively.
Deposits increased $1.8 billion to $25.9 billion at December 31, 2007 compared to December 31, 2006, driven by
a $2.4 billion increase in money market and savings accounts. Deposits generally provide us the benefit of lower
interest costs, compared with wholesale funding alternatives.
During the first three quarters of 2007, the deposits balance increased $5.1 billion, primarily the result of the
growth in our Complete Savings Account. This product created measurable growth in cash from new and existing
customers; however, during the fourth quarter of 2007, we experienced a disruption in our customer base and the
customer deposit balances began to decline. We believe this disruption was due to the uncertainty surrounding
the Company in connection with the credit related losses in our institutional segment. While we continue to
anticipate credit related losses, primarily in our home equity loan portfolio, we believe our retail customer base
has stabilized, and will return to growth in 2008.
The deposits balance is a component of the total customer cash and deposits balance reported as a customer
activity metric of $33.6 billion for the year ended December 31, 2007. The total customer cash and deposits
balance is summarized as follows (dollars in thousands):
December 31,
Variance
2007 vs. 2006
2007 2006 Amount %
Deposits $25,884,755 $24,071,012 $1,813,743 8 %
Less: brokered certificates of deposit (1,092,225) (483,777) (608,448) 126 %
Deposits excluding brokered certificates of
deposit 24,792,530 23,587,235 1,205,295 5 %
Customer payables 5,514,675 6,182,672 (667,997) (11)%
Customer cash balances held by third parties
and other 3,286,212 3,819,860 (533,648) (14)%
Total customer cash and deposits $33,593,417 $33,589,767 $ 3,650 0 %
46