eTrade 2009 Annual Report Download - page 133
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NOTE 7—LOANS, NET
Loans, net are summarized as follows (dollars in thousands):
December 31,
2009 2008
Loans held-for-sale $ 7,865 $ —
Loans receivable, net:
One- to four-family 10,567,129 12,979,844
Home equity 7,769,711 10,017,183
Consumer and other 1,841,317 2,298,670
Total loans receivable 20,178,157 25,295,697
Unamortized premiums, net 171,649 236,766
Allowance for loan losses (1,182,738) (1,080,611)
Total loans receivable, net 19,167,068 24,451,852
Total loans, net $19,174,933 $24,451,852
In addition to these loans, the Company had $34.2 million in commitments to originate loans at
December 31, 2009. The Company had $7.9 million in commitments to sell loans and no commitments to
purchase loans at December 31, 2009 (See Note 22—Commitments, Contingencies, and Other Regulatory
Matters).
The following table shows the percentage of adjustable and fixed-rate loans in the Company’s portfolio
(dollars in thousands):
December 31, 2009 December 31, 2008
$ Amount % of Total $ Amount % of Total
Adjustable rate loans:
One- to four-family $ 7,916,259 39.2% $ 9,705,494 38.4%
Home equity 5,770,779 28.6 7,287,615 28.8
Consumer and other 214,086 1.1 299,966 1.2
Total adjustable rate loans 13,901,124 68.9 17,293,075 68.4
Fixed rate loans 6,284,898 31.1 8,002,622 31.6
Total loans(1) $20,186,022 100.0% $25,295,697 100.0%
(1) Includes the principal balance of held-for-sale loans of $7.9 million at December 31, 2009. There were no held-for-sale loans at
December 31, 2008.
The weighted-average remaining maturity of mortgage loans secured by one- to four-family residences was
316 and 326 months at December 31, 2009 and 2008, respectively. Additionally, all mortgage loans outstanding
at December 31, 2009 and 2008 in the held-for-investment portfolio were serviced by other companies.
Activity in the allowance for loan losses is summarized as follows (dollars in thousands):
Year Ended December 31,
2009 2008 2007
Allowance for loan losses, beginning of period $ 1,080,611 $ 508,164 $ 67,628
Provision for loan losses 1,498,112 1,583,666 640,078
Charge-offs (1,442,187) (1,043,015) (227,679)
Recoveries 46,202 31,796 28,137
Net charge-offs (1,395,985) (1,011,219) (199,542)
Allowance for loan losses, end of period $ 1,182,738 $ 1,080,611 $ 508,164
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