eTrade 2012 Annual Report Download - page 96

Average equity to average total assets—Average total shareholders’ equity divided by average total assets.
Bank—ETB Holdings, Inc. (“ETBH”), the entity that is our bank holding company and parent to E*TRADE
Bank.
Basis point—One one-hundredth of a percentage point.
BCBS—International Basel Committee on Banking Supervision.
BOLI—Bank-Owned Life Insurance.
Brokerage account attrition rate—Attriting brokerage accounts, which are gross new brokerage accounts
less net new brokerage accounts, divided by total brokerage accounts at the previous period end.
CAMELS rating—A U.S. supervisory rating of a bank’s overall condition. The components of the rating
consist of Capital adequacy, Asset quality, Management, Earnings, Liquidity and Sensitivity to market risk.
Cash flow hedge—A derivative instrument designated in a hedging relationship that mitigates exposure to
variability in expected future cash flows attributable to a particular risk.
CFPB—Consumer Financial Protection Bureau.
Charge-off—The result of removing a loan or portion of a loan from an entity’s balance sheet because the
loan is considered to be uncollectible.
CLTV—Combined loan-to-value.
CMOs—Collateralized mortgage obligations.
Corporate cash—Cash held at the parent company as well as cash held in certain subsidiaries that can
distribute cash to the parent company without any regulatory approval.
Customer assets—Market value of all customer assets held by the Company including security holdings,
customer cash and deposits and vested unexercised options.
Customer cash and deposits—Customer cash, deposits, customer payables and money market balances,
including those held by third parties.
Daily average revenue trades (“DARTs”)—Total revenue trades in a period divided by the number of
trading days during that period.
Derivative—A financial instrument or other contract, the price of which is directly dependent upon the
value of one or more underlying securities, interest rates or any agreed upon pricing index. Derivatives cover a
wide assortment of financial contracts, including forward contracts, options and swaps.
DIF—Depositors Insurance Fund.
Economic Value of Equity (“EVE”)—The present value of expected cash inflows from existing assets,
minus the present value of expected cash outflows from existing liabilities, plus the expected cash inflows and
outflows from existing derivatives and forward commitments. This calculation is performed for E*TRADE Bank.
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