eTrade 2011 Annual Report Download - page 133

experiencing financial difficulty a TDR. The various types of economic concessions that may be granted
typically consist of interest rate reductions, maturity date extensions, principal forgiveness or a combination of
these concessions. Upon being classified as a TDR, such loan is categorized as an impaired loan and impairment
is measured on an individual basis. Once a loan is modified as a TDR, the loan is considered impaired until
maturity regardless of whether the borrower performs under the modified terms.
Both one- to four-family and home equity TDRs, including trial modifications, are accounted for as
nonaccrual loans at the time of modification and return to accrual status after six consecutive payments are made
in accordance with the modified terms. The Company currently does not have an active TDR program for
consumer and other loans; therefore, there are no reported TDRs for consumer and other loans. TDRs are
classified as nonperforming until six consecutive payments have been made. At December 31, 2011 and 2010,
the unpaid principal balance in one- to four-family TDRs was $968.2 million and $546.4 million, respectively.
For home equity loans, the recorded investment in TDRs represents the unpaid principal balance.
The following table shows a summary of the Company’s recorded investment in TDRs that were on accrual
and non-accrual status, in addition to the recorded investment of TDRs as of December 31, 2011 and 2010
(dollars in thousands):
Nonaccrual TDRs
Accrual TDRs(1) Current(2)
30-89 Days
Delinquent
90+ Days
Delinquent
Recorded
Investment in TDRs
December 31, 2011
One- to four-family $516,314 $250,989 $ 88,195 $117,455 $ 972,953
Home equity 279,031 72,578 51,433 42,897 445,939
Total $795,345 $323,567 $139,628 $160,352 $1,418,892
December 31, 2010
One- to four-family $229,605 $190,597 $ 55,447 $ 72,893 $ 548,542
Home equity 279,315 109,355 56,742 42,917 488,329
Total $508,920 $299,952 $112,189 $115,810 $1,036,871
(1) Represents TDRs that are current and have made six or more consecutive payments.
(2) Represents current TDRs that have not yet made six consecutive payments.
The following table shows the average recorded investment and interest income recognized both on a cash
and accrual basis for the Company’s TDRs during the years ended December 31, 2011, 2010, and 2009 (dollars
in thousands):
Average Recorded Investment Interest Income Recognized
December 31, December 31,
2011 2010 2009 2011 2010 2009
One- to four-family $ 770,943 $399,306 $117,635 $27,034 $13,498 $5,487
Home equity 455,422 460,892 192,202 9,981 5,209 1,309
Total $1,226,365 $860,198 $309,837 $37,015 $18,707 $6,796
130