eTrade 2008 Annual Report Download - page 77

Lending Activities
The following table presents the balance and associated percentage of each major loan category in our
portfolio (dollars in thousands):
December 31,
2008 2007 2006 2005 2004
Balance % Balance % Balance % Balance % Balance %
One- to four-family $12,979,844 51.3% $15,607,427 51.5% $11,149,958 42.4% $ 7,178,897 37.3% $ 3,914,187 33.6%
Home equity 10,017,183 39.6 11,901,324 39.2 11,809,069 44.8 8,106,894 42.1 3,621,835 31.1
Consumer and other loans:
Recreational vehicle 1,570,116 6.2 1,910,454 6.3 2,292,356 8.7 2,692,055 14.0 2,567,891 22.1
Marine 424,595 1.7 526,580 1.7 651,764 2.5 752,645 3.9 724,125 6.2
Commercial 214,084 0.9 272,156 0.9 219,008 0.8 89,098 0.5 3,012 0.0
Credit card 85,851 0.3 90,764 0.3 128,583 0.5 188,600 1.0 203,169 1.8
Other 4,024 0.0 23,334 0.1 81,239 0.3 243,726 1.2 599,870 5.2
Total consumer and other
loans 2,298,670 9.1 2,823,288 9.3 3,372,950 12.8 3,966,124 20.6 4,098,067 35.3
Total loans 25,295,697 100.0% 30,332,039 100.0% 26,331,977 100.0% 19,251,915 100.0% 11,634,089 100.0%
Adjustments:
Premiums (discounts) and
deferred fees on loans 236,766 315,507 391,844 323,637 198,627
Allowance for loan losses (1,080,611) (508,164) (67,628) (63,286) (47,681)
Total adjustments (843,845) (192,657) 324,216 260,351 150,946
Loans, net(1) $24,451,852 $30,139,382 $26,656,193 $19,512,266 $11,785,035
(1) Includes loans held-for-sale, principally one- to four-family real estate loans. These loans were $0.1 billion, $0.3 billion, $0.1 billion and
$0.3 billion at December 31, 2007, 2006, 2005 and 2004, respectively. There were no loans held-for-sale at December 31, 2008. Loans
held-for-sale are accounted for at lower of cost or fair value with adjustments recorded in the gain (loss) on loans and securities, net line
item and are not considered in the allowance for loan losses.
Approximately 39% and 38% of the Company’s real estate loans were concentrated in California at
December 31, 2008 and 2007, respectively. No other state had concentrations of real estate loans that represented
10% or more of the Company’s real estate portfolio.
The following table shows the contractual maturities of our loan portfolio at December 31, 2008, including
scheduled principal repayments. This table does not, however, include any estimate of prepayments. These
prepayments could significantly shorten the average loan lives and cause the actual timing of the loan repayments
to differ from those shown in the following table (dollars in thousands):
Due in(1)
< 1 Year 1-5 Years > 5 Years Total
One- to four-family $193,882 $ 905,289 $11,880,673 $12,979,844
Home equity 305,146 1,413,884 8,298,153 10,017,183
Consumer and other loans:
Recreational vehicle 92,449 429,891 1,047,776 1,570,116
Marine 23,661 110,757 290,177 424,595
Commercial 73,971 140,113 — 214,084
Credit card 85,851 — — 85,851
Other 3,721 285 18 4,024
Total consumer and other loans 279,653 681,046 1,337,971 2,298,670
Total loans $778,681 $3,000,219 $21,516,797 $25,295,697
(1) Estimated scheduled principal repayments are calculated using weighted-average interest rate and weighted-average remaining maturity
of each loan portfolio.
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