eTrade 2011 Annual Report Download - page 92

Retail deposits—Balances of customer cash held at the Bank; excludes brokered certificates of deposit.
Return on average total assets—Annualized net income divided by average assets.
Return on average total shareholders’ equity—Annualized net income divided by average shareholders’
equity.
Risk-weighted assets—Primarily computed by the assignment of specific risk-weightings assigned by the
regulators to assets and off-balance sheet instruments for capital adequacy calculations.
S&P—Standard & Poor’s.
SEC—U.S. Securities and Exchange Commission.
Special mention loans—Loans where a borrower’s past credit history casts doubt on their ability to repay a
loan. Loans are classified as special mention when loans are between 30 and 89 days past due.
Stock plan trades—Trades that originate from our corporate services business, which provides software and
services to assist corporate customers in managing their equity compensation plans. The trades typically occur
when an employee of a corporate customer exercises a stock option or sells restricted stock.
Sweep deposit accounts—Accounts with the functionality to transfer brokerage cash balances to and from a
FDIC insured account at the banking subsidiaries.
Sub-prime—Defined as borrowers with FICO scores less than 620 at the time of origination.
Taxable equivalent interest adjustment—The operating interest income earned on certain assets is
completely or partially exempt from federal and/or state income tax. These tax-exempt instruments typically
yield lower returns than a taxable investment. To provide more meaningful comparison of yields and margins for
all interest-earning assets, the interest income earned on tax exempt assets is increased to make it fully equivalent
to interest income on other taxable investments. This adjustment is done for the analytic purposes in the net
enterprise interest income/spread calculation and is not made on the consolidated statement of income (loss), as
that is not permitted under GAAP.
Tier I capital—Adjusted equity capital used in the calculation of capital adequacy ratios. Tier I capital
equals: total shareholders’ equity, plus/(less) unrealized losses (gains) on available-for-sale securities and cash
flow hedges and qualifying restricted core capital elements, less disallowed servicing and deferred tax assets,
goodwill and certain other intangible assets.
Troubled Debt Restructuring (“TDR”)—A loan modification that involves granting an economic concession
to a borrower who is experiencing financial difficulty.
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