eTrade 2000 Annual Report Download - page 43

The following table allocates the period-to-period changes in our various categories of banking-related interest and expense between
changes due to (1) changes in asset/liability volume, calculated by multiplying the change in average asset/liability volume of the
related interest-earning banking asset or interest-bearing banking liability category by the prior year’ s interest rate, and (2) changes in
interest rate, calculated by multiplying changes in interest rate by the prior year’ s asset/liability volume. Changes due to changes in
rate-volume, which is calculated as the change in interest rate multiplied by changes in asset/liability volume, have been allocated
proportionately between changes in asset/liability volume and changes in interest rate.
Fiscal 2000 vs. Fiscal 1999 Fiscal 1999 vs. Fiscal 1998
Increase (Decrease) Due To Increase (Decrease) Due To
Volume Rate Total Volume Rate Total
(in thousands)
Interest earning banking assets:
Loans receivable, net $ 142,007 $ 13,549 $ 155,556 $ 47,198 $ (937 ) $ 46,261
Interest bearing deposits 1,518 641 2,159 888 (80 ) 808
Mortgage-backed and related
available-for-sale securities
111,297 28,658 139,955 45,130 (2,111 ) 43,019
Available-for-sale investment
securities
1,045 1,848 2,893 3,374 (213 ) 3,161
Investment in FHLB stock 2,814 157 2,971 1,002 4 1,006
Trading securities 825 (30 ) 795 (351 ) (22 ) (373 )
Total interest-earning banking assets 259,506 44,823 304,329 97,241 (3,359 ) 93,882
Interest-bearing banking liabilities:
Time deposits 106,509 11,836 118,345 36,421 (2,033 ) 34,388
Brokered callable certificates of
deposit
1,428 (52 ) 1,376 834 (23 ) 811
FHLB advances 40,954 11,408 52,362 13,760 (973 ) 12,787
Other borrowings 50,703 15,679 66,382 16,808 (773 ) 16,035
Subordinated debt, net (2,359 ) — (2,359 ) (1,181 ) 14 (1,167 )
Total interest-bearing banking
liabilities
197,235 38,871 236,106 66,642 (3,788 ) 62,854
Change in net interest income $ 62,271 $ 5,952 $ 68,223 $ 30,599 $ 429 $ 31,028
Global and Institutional
Global and institutional revenues increased 34% from fiscal 1999 to fiscal 2000 and 17% from fiscal 1998 to fiscal 1999. Global and
institutional revenues are comprised primarily of revenues from TIR’ s and VERSUS’ operations, as well as retail brokerage-related
transaction revenue from our international subsidiaries. TIR’ s global and institutional revenues increased to $130.6 million in fiscal
2000, up 22% from $106.9 million for fiscal 1999, which was up 20% from $88.8 million in fiscal 1998. VERSUS’ global and
institutional revenues increased to $26.3million in fiscal 2000, up 98% from $13.3 million for fiscal 1999, which was up 32% from
$10.0 million in fiscal 1998. The overall increases in fiscal 2000 and 1999 are primarily attributable to strong market conditions in
Asia and Europe and the emerging on-line brokerage market in Canada. The acquisition of several of our international affi liates in
fiscal 2000 also resulted in increasing global and institutional revenues in fiscal 2000 as compared to fiscal 1999. TIR’ s revenues are
largely comprised of commissions from institutional transaction executions. For fiscal 2000, approximately 72% of TIR’ s transactions
were from outside the U.S. and approximately 73% were from cross-border transactions.
Other
Other revenues increased 166% from fiscal 1999 to fiscal 2000 and 44% from fiscal 1998 to fiscal 1999. For the past two years, other
revenues increased primarily due to the growth of the Business Solutions Group revenue, mutual fund revenues, revenues from fees
charged for advertising on our Web site, investment banking revenue, gains on the sale of banking-related loans and securities, and
brokerage and banking-related fees for services. Furthermore, with the acquisition of E*TRADE Access in May 2000, accounted for
under the purchase method, other revenues for the second half of fiscal 2000 include ATM transaction fees.
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Provision for loan losses
The provision for loan losses recorded reflects increases in our allowance for loan losses based upon management’ s review and
2002. EDGAR Online, Inc.