eTrade 2009 Annual Report Download - page 56
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billion. We believe this transaction is in line with our overall strategy of reducing our balance sheet and growing
our brokerage business as the customers being sold are primarily not affiliated with an active broker account.
The deposits balance is a component of the total customer cash and deposits balance reported as a customer
activity metric of $33.8 billion and $32.3 billion at December 31, 2009 and 2008, respectively. The total
customer cash and deposits balance is summarized as follows (dollars in millions):
December 31,
Variance
2009 vs. 2008
2009 2008 Amount %
Deposits $25,597.7 $26,136.2 $ (538.5) (2)%
Less: brokered certificates of deposit (129.3) (438.2) 308.9 (70)%
Retail deposits 25,468.4 25,698.0 (229.6) (1)%
Customer payables 5,234.2 3,753.3 1,480.9 39%
Customer cash balances held by third parties and other 3,132.8 2,805.1 327.7 12%
Total customer cash and deposits $33,835.4 $32,256.4 $1,579.0 5%
Wholesale Borrowings
Wholesale borrowings, which consist of securities sold under agreements to repurchase and other
borrowings are summarized as follows (dollars in millions):
December 31,
Variance
2009 vs. 2008
2009 2008 Amount %
Securities sold under agreements to repurchase $6,441.9 $ 7,381.3 $ (939.4) (13)%
FHLB advances $2,303.6 $ 3,903.6 $(1,600.0) (41)%
Subordinated debentures 427.4 427.3 0.1 0%
Other 15.9 22.9 (7.0) (31)%
Total other borrowings $2,746.9 $ 4,353.8 $(1,606.9) (37)%
Total wholesale borrowings $9,188.8 $11,735.1 $(2,546.3) (22)%
Wholesale borrowings represented 21% and 26% of total liabilities at December 31, 2009 and 2008,
respectively. The decrease in wholesale borrowings of $2.5 billion during the year ended December 31, 2009 was
due primarily to the early termination of certain FHLB advances that resulted in a loss on early extinguishment of
debt of $50.6 million and a decrease in securities sold under agreements to repurchase. FHLB advances coupled
with securities sold under agreements to repurchase are the primary wholesale funding sources of the Bank. As a
result, we expect these balances to fluctuate over time as our deposits and our interest-earning assets fluctuate.
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