eTrade 2012 Annual Report Download - page 97

Enterprise interest-bearing liabilities—Liabilities such as customer deposits, repurchase agreements, FHLB
advances and other borrowings, certain customer credit balances and securities loaned programs on which the
Company pays interest; excludes customer money market balances held by third parties.
Enterprise interest-earning assets—Consists of the primary interest-earning assets of the Company and
includes: loans, available-for-sale securities, held-to-maturity securities, margin receivables, trading securities,
securities borrowed balances and cash and investments required to be segregated under regulatory guidelines that
earn interest for the Company.
Enterprise net interest income—The taxable equivalent basis net operating interest income excluding
corporate interest income and corporate interest expense and interest earned on customer cash held by third
parties.
Enterprise net interest margin—The enterprise net operating interest income divided by total enterprise
interest-earning assets.
Enterprise net interest spread—The taxable equivalent rate earned on average enterprise interest-earning
assets less the rate paid on average enterprise interest-bearing liabilities, excluding corporate interest-earning
assets and liabilities and customer cash held by third parties.
Exchange-traded funds (“ETFs”)—A fund that invests in a group of securities and trades like an individual
stock on an exchange.
Fair value—The price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date.
Fair value hedge—A derivative instrument designated in a hedging relationship that mitigates exposure to
changes in the fair value of a recognized asset or liability or a firm commitment.
Fannie Mae—Federal National Mortgage Association.
FASB—Financial Accounting Standards Board.
FDIC—Federal Deposit Insurance Corporation.
Federal Reserve—Board of Governors of the Federal Reserve System.
FHLB—Federal Home Loan Bank.
FICO—Fair Isaac Credit Organization.
FINRA—Financial Industry Regulatory Authority.
Fixed charge coverage ratio—Net income before taxes, depreciation and amortization and corporate interest
expense divided by corporate interest expense. This ratio indicates the Company’s ability to satisfy fixed
financing expenses.
Forex—A type of trade that involves buying one currency while simultaneously selling another. Currencies
are traded in pairs consisting of a “base currency” and a “quote currency.”
Freddie Mac—Federal Home Loan Mortgage Corporation.
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