eTrade 2010 Annual Report Download - page 36

The following table presents enterprise average balance sheet data and enterprise income and expense data for our
operations, as well as the related net interest spread, yields and rates and has been prepared on the basis required by the
SEC’s Industry Guide 3, “Statistical Disclosure by Bank Holding Companies” (dollars in millions):
Year Ended December 31,
2010 2009 2008
Average
Balance
Operating
Interest
Inc./Exp.
Average
Yield/
Cost
Average
Balance
Operating
Interest
Inc./Exp.
Average
Yield/
Cost
Average
Balance
Operating
Interest
Inc./Exp.
Average
Yield/
Cost
Enterprise interest-earning assets:
Loans(1) $18,302.2 $879.0 4.80% $23,113.6 $1,138.1 4.92% $27,761.9 $1,587.8 5.72%
Margin receivables 4,532.5 200.3 4.42% 3,103.5 138.5 4.46% 5,833.6 278.2 4.77%
Available-for-sale mortgage-backed
securities 9,901.1 305.6 3.09% 10,365.7 436.9 4.22% 9,455.4 435.9 4.61%
Available-for-sale investment securities 3,374.8 81.9 2.43% 1,227.6 36.2 2.95% 141.2 9.4 6.63%
Held-to-maturity securities 1,085.8 35.9 3.31% — — — — — —
Cash and equivalents 2,414.3 5.4 0.22% 4,215.7 14.8 0.35% 2,239.1 55.3 2.47%
Segregated cash and investments 857.1 1.9 0.22% 1,785.7 4.2 0.23% 307.2 5.3 1.73%
Securities borrowed and other 662.9 29.4 4.43% 690.4 50.4 7.30% 1,113.0 77.3 6.95%
Total enterprise interest-earning assets 41,130.7 1,539.4 3.74% 44,502.2 1,819.1 4.09% 46,851.4 2,449.2 5.22%
Non-operating interest-earning and
non-interest-earning assets(2) 4,395.1 3,873.3 5,002.3
Total assets $45,525.8 $48,375.5 $51,853.7
Enterprise interest-bearing liabilities:
Retail deposits:
Sweep deposits $14,014.4 10.1 0.07% $11,022.3 7.6 0.07% $9,904.7 40.0 0.40%
Complete savings deposits 7,577.0 28.6 0.38% 11,539.9 140.1 1.21% 9,790.2 331.0 3.37%
Other money market and savings deposits 1,114.6 2.8 0.25% 1,243.7 5.9 0.47% 1,844.9 38.9 2.10%
Certificates of deposit 795.3 14.5 1.82% 1,750.4 45.2 2.58% 3,258.9 137.4 4.22%
Checking deposits 761.9 0.9 0.11% 797.5 3.0 0.37% 908.0 19.7 2.17%
Brokered certificates of deposit 115.3 5.9 5.14% 193.8 10.0 5.17% 976.1 48.9 5.01%
Customer payables 4,713.2 7.0 0.15% 4,662.9 8.8 0.19% 4,288.8 29.7 0.69%
Securities sold under agreements to
repurchase 6,154.3 129.6 2.11% 6,725.4 200.1 2.98% 7,284.0 291.6 4.00%
Federal Home Loan Bank (“FHLB”)
advances and other borrowings 2,754.3 119.3 4.33% 3,392.0 148.8 4.38% 5,120.3 245.6 4.80%
Securities loaned and other 622.4 1.6 0.26% 513.0 2.4 0.46% 1,075.5 18.6 1.73%
Total enterprise interest-bearing liabilities 38,622.7 320.3 0.83% 41,840.9 571.9 1.37% 44,451.4 1,201.4 2.70%
Non-operating interest-bearing and
non-interest-bearing liabilities(3) 2,876.4 3,558.5 4,706.3
Total liabilities 41,499.1 45,399.4 49,157.7
Total shareholders’ equity 4,026.7 2,976.1 2,696.0
Total liabilities and shareholders’
equity $45,525.8 $48,375.5 $51,853.7
Excess of enterprise interest-earning assets
over enterprise interest-bearing liabilities/
Enterprise net interest income/Spread $2,508.0 $1,219.1 2.91% $2,661.3 $1,247.2 2.72% $2,400.0 $1,247.8 2.52%
Reconciliation from enterprise net interest income to net operating interest income (dollars in millions):
Year Ended December 31,
2010 2009 2008
Enterprise net interest income $1,219.1 $1,247.2 $1,247.8
Taxable equivalent interest adjustment (1.2) (2.1) (9.1)
Customer cash held by third parties and other(4) 8.4 15.5 29.3
Net operating interest income $1,226.3 $1,260.6 $1,268.0
(1) Nonaccrual loans are included in the respective average loan balances. Income on such nonaccrual loans is recognized on a cash basis.
(2) Non-operating interest-earning and non-interest-earning assets consist of property and equipment, net, goodwill, other intangibles, net and other
assets that do not generate operating interest income. Some of these assets generate corporate interest income.
(3) Non-operating interest-bearing and non-interest-bearing liabilities consist of corporate debt and other liabilities that do not generate operating
interest expense. Some of these liabilities generate corporate interest expense.
(4) Includes interest earned on average customer assets of $3.1 billion, $2.9 billion and $3.2 billion for the years ended December 31, 2010, 2009
and 2008, respectively, held by parties outside the Company, including third party money market funds and sweep deposit accounts at
unaffiliated financial institutions.
33