eTrade 2002 Annual Report Download - page 172

Table of Contents
Index to Financial Statements
assets and Tangible Capital to tangible assets. As of December 31, 2002, the most recent date of notification, the OTS 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 and Tier I Capital to risk-weighted assets and Tier I Capital to adjusted total assets as set forth in the following table. There are
no conditions or events since that notification that management believes have changed the Bank’ s category. Management believes, as of
December 31, 2002, that the Bank meets all capital adequacy requirements to which it is subject. Events beyond management’ s control, such as
fluctuations in interest rates or a downturn in the economy in areas in which the Bank’ s loans or securities are concentrated, could adversely
affect future earnings and consequently, the Bank’ s ability to meet its future capital requirements.
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 CapitalizedUnder Prompt Corrective
Action Provisions
Amount Ratio Amount Ratio Amount Ratio
As of December 31, 2002:
Total Capital to risk-weighted
assets
$ 988,127 11.70 % >$ 675,608 >8.0 % >$ 844,510 >10.0 %
Tier I Capital to risk-weighted
assets
$ 960,627 11.37 % >$ 337,804 >4.0 % >$ 506,706 >6.0 %
Tier I Capital to adjusted total
assets
$ 960,627 5.67 % >$ 677,212 >4.0 % >$ 846,515 >5.0 %
As of December 31, 2001:
Total Capital to risk-weighted
assets
$ 836,866 11.52 % >$ 580,986 >8.0 % >$ 726,233 >10.0 %
Tier I Capital to risk-weighted
assets
$ 819,367 11.28 % >$ 290,493 >4.0 % >$ 435,740 >6.0 %
Tier I Capital to adjusted total
assets
$ 819,367 6.09 % >$ 538,381 >4.0 % >$ 672,976 >5.0 %
The Bank is also required by OTS regulations to maintain tangible capital of at least 1.50% of tangible assets. The Bank satisfied this
requirement at both December 31, 2002 and December 31, 2001.
The Bank is subject to certain restrictions on the amount of dividends it may declare without prior regulatory approval. At December 31, 2002,
approximately $195.2 million of the Bank’ s capital was available for dividend declaration.
26.LEASE ARRANGEMENTS
The Company has non-cancelable operating leases for facilities through 2013 and operating and capital leases for equipment through 2005.
Future minimum rental commitments under these leases at December 31, 2002 are as follows (in thousands):
Capital Leases Operating Leases
Fiscal years ending December 31:
2003 $ 3,674 $ 38,748
2004 766 34,391
2005 148 29,296
2006 — 28,452
2007 — 26,652
Thereafter — 92,512
Future minimum lease payments 4,588 $ 250,051
2003. EDGAR Online, Inc.