eTrade 2000 Annual Report Download - page 42

interest expense in fiscal 1999 reflects an increase in the average interest-bearing banking liabilities offset by a decrease in the average
cost of the borrowings. Average interest-bearing banking liabilities increased 140% from fiscal 1999 to fiscal 2000 and 92% from
fiscal 1998 to fiscal 1999. The average cost increased to 6.29% in fiscal 2000 from 5.69% in fiscal 1999, which decreased from 6.08%
in fiscal 1998.
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The following table presents average balance data and income and expense data for our banking operations and the related interest
yields and rates for the three years ended September 30, 2000, 1999 and 1998. The table also presents information with respect to net
interest margin, an indicator of profitability. Another indicator of profitability is net interest spread, which is the difference between
the weighted average yield earned on interest-earning banking assets and weighted average rate paid on interest-bearing banking
liabilities. Interest income includes the incremental tax benefit of tax exempt income.
Fiscal 2000 Fiscal 1999 Fiscal 1998
Average
Balance
Interest
Inc./Exp.
Average
Yield/Cost
Average
Balance
Interest
Inc./Exp.
Average
Yield/Cost
Average
Balance
Interest
Inc./Exp.
Average
Yield/Cost
(dollars in thousands)
Interest-earning banking
assets:
Loans receivable, net $ 3,165,908 $ 252,982 7.99 % $ 1,288,221 $ 97,427 7.56 % $ 663,913 $ 51,166 7.71 %
Interest bearing deposits 59,708 3,466 5.81 % 27,624 1,307 4.73 % 8,339 499 5.98 %
Mortgage-backed and
related
available-for-sale
securities
2,884,474 217,448 7.54 % 1,184,003 77,493 6.55 % 492,077 34,474 7.01 %
Available-for-sale
investment securities
228,007 16,125 7.15 % 211,342 13,233 6.43 % 157,381 10,072 6.40 %
Investment in FHLB
stock
62,511 4,847 7.75 % 25,001 1,876 7.50 % 11,651 870 7.47 %
Trading securities 26,210 1,900 7.25 % 15,001 1,104 7.36 % 19,760 1,477 7.47 %
Total interest-earning
banking assets
6,426,818 $ 496,768 7.73 % 2,751,192 $ 192,440 7.01 % 1,353,121 $ 98,558 7.28 %
Non-interest-earning
banking assets
206,554 107,025 52,841
Total banking assets $ 6,633,372 $ 2,858,217 $ 1,405,962
Interest-bearing banking
liabilities:
Retail deposits $ 3,228,692 $ 197,748 6.12 % $ 1,390,957 $ 79,404 5.71 % $ 753,352 $ 45,016 5.98 %
Brokered callable
certificates of deposit
88,601 5,825 6.56 % 67,071 4,449 6.63 % 54,491 3,638 6.68 %
FHLB advances 1,225,783 78,171 6.27 % 473,849 25,809 5.37 % 219,487 13,022 5.85 %
Other borrowings 1,471,435 96,566 6.46 % 549,090 30,184 5.42 % 242,412 14,149 5.76 %
Subordinated debt, net — — — % 19,911 2,359 11.85 % 29,880 3,526 11.80 %
Total interest-bearing
banking liabilities
6,014,511 $ 378,310 6.29 % 2,500,878 $ 142,205 5.69 % 1,299,662 $ 79,351 6.08 %
Non-interest-bearing
banking liabilities
115,280 28,256 19,312
Total banking liabilities 6,129,791 2,529,134 1,318,934
Trust preferred securities — 33,847 20,599
Total banking
shareowners’ equity
503,581 295,236 66,429
Total banking liabilities
and shareowners’
equity
$ 6,633,372 $ 2,858,217 $ 1,405,962
Excess of interest-earning
banking assets over
interest-bearing banking
liabilities/net interest
income
$ 412,307 $ 118,458 $ 250,314 $ 50,235 $ 53,459 $ 19,207
Net interest spread 1.44 % 1.32 % 1.20 %
Net interest margin (net
yield on interest-earning
banking assets)
1.85 % 1.83 % 1.42 %
Ratio of interest-earning
banking assets to
interest-bearing banking
liabilities
106.86 % 110.01 % 104.12 %
Return on average total
banking assets
(0.08 )
%
0.09 % 0.10 %
Return on average net
banking assets
(1.10 )
%
0.79 % 2.07 %
Equity to total banking
assets
7.59 % 10.33 % 4.72 %
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2002. EDGAR Online, Inc.