eTrade 2010 Annual Report Download - page 66
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The credit trends in acquisition channel, vintage and geographic location are summarized below as of
December 31, 2010 and 2009 (dollars in millions):
One- to
Four-Family Home Equity
December 31, December 31,
Acquisition Channel 2010 2009 2010 2009
Purchased from a third party $6,687.7 $ 8,660.2 $5,607.2 $6,803.9
Originated by the Company 1,482.6 1,906.9 803.1 965.8
Total mortgage loans receivable $8,170.3 $10,567.1 $6,410.3 $7,769.7
One- to
Four-Family Home Equity
December 31, December 31,
Vintage Year 2010 2009 2010 2009
2003 and prior $ 297.6 $ 438.4 $ 392.1 $ 550.1
2004 759.3 1,034.9 585.7 715.4
2005 1,713.4 2,219.1 1,615.8 1,898.5
2006 3,108.3 3,944.2 2,999.1 3,626.4
2007 2,276.6 2,904.2 805.0 963.8
2008 15.1 26.3 12.6 15.5
Total mortgage loans receivable $8,170.3 $10,567.1 $6,410.3 $7,769.7
One- to
Four-Family Home Equity
December 31, December 31,
Geographic Location 2010 2009 2010 2009
California $3,773.6 $ 4,829.6 $2,038.3 $2,472.8
New York 613.0 800.9 459.0 533.8
Florida 563.4 717.8 456.0 561.9
Virginia 338.1 438.6 278.0 327.9
Other states 2,882.2 3,780.2 3,179.0 3,873.3
Total mortgage loans receivable $8,170.3 $10,567.1 $6,410.3 $7,769.7
Approximately 40% of the Company’s real estate loans were concentrated in California at both
December 31, 2010 and 2009. No other state had concentrations of real estate loans that represented 10% or more
of the Company’s real estate portfolio.
Allowance for Loan Losses
The allowance for loan losses is management’s estimate of credit losses inherent in our loan portfolio as of
the balance sheet date. The estimate of the allowance for loan losses is based on a variety of quantitative and
qualitative factors, including the composition and quality of the portfolio; delinquency levels and trends; current
and historical charge-off and loss experience; current industry charge-off and loss experience; our historical loss
mitigation experience; the condition of the real estate market and geographic concentrations within the loan
portfolio; the interest rate climate; the overall availability of housing credit; and general economic conditions.
The allowance for loan losses is typically equal to management’s estimate of loan charge-offs in the twelve
months following the balance sheet date as well as the estimated charge-offs, including economic concessions to
borrowers, over the estimated remaining life of loans modified in TDRs.
The general allowance for loan losses also included a specific qualitative component to account for a variety
of economic and operational factors that are not directly considered in our quantitative loss model but are factors
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