eTrade 2011 Annual Report Download - page 46
Download and view the complete annual report
Please find page 46 of the 2011 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.-
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
-
196
-
197
-
198
-
199
-
200
-
201
-
202
-
203
-
204
-
205
-
206
-
207
-
208
-
209
-
210
-
211
-
212
-
213
-
214
-
215
-
216
 |
 |
Average commission per trade decreased 1% to $11.21 for the year ended December 31, 2010 compared to
2009. The slight decrease in the average commission per trade was due primarily to the elimination of the $12.99
commission tier and the per share commission applied to market trades larger than 2,000 shares, which became
effective in the second quarter of 2010, partially offset by an improvement in the product and customer mix when
compared to 2009.
Fees and Service Charges
Fees and service charges decreased 26% to $142.4 million for the year ended December 31, 2010 compared
to 2009. The decrease was primarily due to the elimination of all account activity fees, which became effective in
the second quarter of 2010, and lower order flow revenue.
Principal Transactions
Principal transactions increased 17% to $103.4 million for the year ended December 31, 2010 compared to
2009. The increase in principal transactions was driven by an increase in the volume of orders from our third
party customers which was partially offset by a decrease in our average revenue earned per share traded when
compared to 2009.
Gains on Loans and Securities, Net
Gains on loans and securities, net were $166.2 million and $169.1 million for years ended December 31,
2010 and 2009, respectively, as shown in the following table (dollars in millions):
Variance
Year Ended December 31, 2010 vs. 2009
2010 2009 Amount %
Gains (losses) on loans, net $ 6.3 $ (12.5) $ 18.8 *
Gains on available-for-sale securities, net 160.7 173.2 (12.5) (7)%
Gains on trading securities, net 0.2 7.8 (7.6) (98)%
Hedge ineffectiveness (1.0) 0.6 (1.6) *
Gains on securities, net 159.9 181.6 (21.7) (12)%
Gains on loans and securities, net $166.2 $169.1 $ (2.9) (2)%
* Percentage not meaningful.
Net Impairment
We recognized $37.7 million and $89.1 million of net impairment during the years ended December 31,
2010 and 2009, respectively, on certain securities in our non-agency CMO portfolio due to continued
deterioration in the expected credit performance of the underlying loans in the securities. The gross OTTI and the
noncredit portion of OTTI, which was or had been previously recorded through other comprehensive income
(loss), are shown in the table below (dollars in millions):
Year Ended December 31,
2010 2009
Other-than-temporary impairment (“OTTI”) $(41.5) $(232.1)
Less: noncredit portion of OTTI recognized into other comprehensive
income (loss) (before tax) 3.8 143.0
Net impairment $(37.7) $ (89.1)
43