eTrade 2000 Annual Report Download - page 95

The table below summarizes the minimum capital requirements for the Company’ s U.S. brokerage subsidiary companies (in
thousands):
September 30, 2000 September 30, 1999
Required
Net Capital
Net Capital Excess
Net Capital
Required
Net Capital
Net Capital Excess
Net Capital
TIR Securities, Inc $ 250 $ 1,161 $ 911 $ 82 $ 2,289 $ 2,207
TIR Investor Select, Inc $ 5 $ 351 $ 346 $ 5 $ 254 $ 249
Marquette Securities, Inc $ 250 $ 536 $ 286 $ 250 $ 445 $ 195
E*TRADE Capital Markets, Inc $ 113 $ 21,774 $ 21,661 $ 190 $ 17,310 $ 17,120
VERSUS Brokerage Services (U.S.),
Inc.
$ 100 $ 233 $ 133 $ 100 $ 233 $ 133
The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet
minimum capital requirements can initiate certain mandatory—and possibly additional discretionary—actions by regulators that, if
undertaken, could have a direct material effect on the Bank’ s financial
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statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific
capital guidelines that involve quantitative measures of the Bank’ s assets, liabilities, and certain off-balance-sheet items as calculated
under regulatory accounting practices. The Bank’ s capital amounts and classification are also subject to qualitative judgments by the
regulators about components, risk weightings, and other factors.
Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios
of total and Tier I capital to risk-weighted assets and of Tier I capital to average assets. Management believes, as of September 30,
2000, that the Bank meets all capital adequacy requirements to which it is subject. As of September 30, 2000 and 1999, the Office of
Thrift Supervision categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be
categorized as well capitalized the Bank must maintain minimum total risk-based, Tier I risk-based and Tier I leverage ratios as set
forth in the following table. There are no conditions or events since that notification that management believes have changed the
institution’ s category.
The Bank’ s actual capital amounts and ratios are presented in the table below (dollars in thousands):
Actual Required for Capital
Adequacy Purposes
Required to be Well
Capitalized Under
Prompt Corrective
Action Provisions
Amount Ratio Amount Ratio Amount Ratio
As of September 30, 2000:
Core Capital (to adjusted tangible assets) $ 582,058 6.5 % >
$
359,874 > 4.0 % $ 449,843 > 5.0 %
Tangible Capital (to tangible assets) $ 582,058 6.5 % >
$
134,953 > 1.5 % N/A N/A
Tier I Capital (to risk weighted assets) $ 582,058 16.8 % N/A N/A $ 207,890 > 6.0 %
Total Capital (to risk weighted assets) $ 592,597 17.1 % >
$
277,186 > 8.0 % $ 346,483 > 10.0 %
As of September 30, 1999:
Core Capital (to adjusted tangible assets) $ 440,469 11.2 % >
$
157,320 > 4.0 % >$ 196,651 > 5.0 %
Tangible Capital (to tangible assets) $ 440,469 11.2 % >
$
58,995 > 1.5 % N/A N/A
Tier I Capital (to risk weighted assets) $ 440,469 25.9 % N/A N/A >$ 101,768 > 6.0 %
Total Capital (to risk weighted assets) $ 447,170 26.3 % >
$
135,691 > 8.0 % >$ 169,614 > 10.0 %
2002. EDGAR Online, Inc.