eTrade 2010 Annual Report Download - page 130

Download and view the complete annual report

Please find page 130 of the 2010 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.

Page out of 195

  • 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

Within the securities portfolio, the highest concentration of credit risk is the non-agency CMO portfolio.
The Company concluded that approximately $387.3 million of non-agency CMO securities for the year ended
December 31, 2010 were other-than-temporarily impaired as a result of deterioration in the expected credit
performance of the underlying loans in the securities. The following table shows the components of net
impairment for the periods presented (dollars in thousands):
Year Ended December 31,
2010 2009(1) 2008
Other-than-temporary impairment (“OTTI”) $(41,510) $(232,139) $(95,010)
Less: noncredit portion of OTTI recognized in other
comprehensive income (loss) (before tax) 3,840 143,044 —
Net impairment $(37,670) $ (89,095) $(95,010)
(1) The Company adopted the amended guidance for the recognition and presentation of OTTI for debt securities on April 1, 2009.
Gains (Losses) on Loans and Securities, Net
The detailed components of the gains (losses) on loans and securities, net line item on the consolidated
statement of loss are as follows (dollars in thousands):
Year Ended December 31,
2010 2009 2008
Gains (losses) on loans, net $ 6,266 $ (12,496) $ (783)
Gains (losses) on securities, net
Gains on available-for-sale securities and other
investments 160,952 203,619 49,397
Losses on available-for-sale securities and other
investments (187) (30,441) (17,007)
Gains (losses) on trading securities, net 162 7,845 (134,297)
Hedge ineffectiveness (981) 579 2,217
Gains (losses) on securities, net 159,946 181,602 (99,690)
Gains (losses) on loans and securities, net $166,212 $169,106 $(100,473)
NOTE 7—LOANS, NET
Loans, net are summarized as follows (dollars in thousands):
December 31,
2010 2009
Loans held-for-sale $ 5,471 $ 7,865
Loans receivable, net:
One- to four-family 8,170,329 10,567,129
Home equity 6,410,311 7,769,711
Consumer and other 1,443,398 1,841,317
Total loans receivable 16,024,038 20,178,157
Unamortized premiums, net 129,050 171,649
Allowance for loan losses (1,031,169) (1,182,738)
Total loans receivable, net 15,121,919 19,167,068
Total loans, net $15,127,390 $19,174,933
127