eTrade 2002 Annual Report Download - page 67

Table of Contents
Index to Financial Statements
In our banking operations, we seek to maintain a stable funding source for future periods in part by attracting core deposit accounts, which are
accounts that tend to be relatively stable even in a changing interest rate environment. Typically, time deposit accounts, transactional accounts
and accounts that maintain a relatively high balance provide a relatively stable source of funding. At December 31, 2002, our average retail
banking deposit account balance was approximately $20,000 and our banking customers maintained an average of 1.6accounts. Savings and
transactional deposits increased from $2.9 billion at December 31, 2001 to $4.3billion at December 31, 2002, an increase of 48%. Retail
certificates of deposit decreased from $5.2 billion at December31, 2001 to $3.7 billion at December 31, 2002, or 29%. Brokered certificates of
deposit increased from none at December 31, 2001 to $0.4 billion at December 31, 2002.
We also rely on borrowed funds in our banking operations, such as FHLB advances and securities sold under agreements to repurchase, to
provide liquidity. Total banking-related borrowings increased 73% from $4.2billion at December 31, 2001 to $7.2 billion at December 31,
2002. At December 31, 2002, ETFC had approximately $2.9 billion in additional borrowing capacity.
Contractual Obligations
The following summarizes our contractual obligations at December 31, 2002, and the effect such obligations are expected to have on our
liquidity and cash flow in future periods (dollars in thousands):
Due in Fiscal
2003 2004 2005 2006 2007 Thereafter Total
General obligations:
Convertible subordinated notes(1) $ 44,157 $ 44,157 $ 44,157 $ 44,157 $ 403,377 $ 335,969 $ 915,974
Operating lease payments 38,748 34,391 29,296 28,452 26,652 92,512 250,051
Venture capital funding commitments(2) 14,200 31,825 — — — — 46,025
Facilities offered for sublease less estimated future sublease income(3) 47,692 5,778 3,690 3,620 3,029 5,313 69,122
Capital lease payments 3,674 766 148 — — — 4,588
Acquisition-related employment agreements 1,880 — — — — — 1,880
Total general obligations(4) 150,351 116,917 77,291 76,229 433,058 433,794 1,287,640
Banking obligations:
Mandatorily redeemable preferred securities(1) 8,903 9,079 9,079 9,079 9,079 209,103 254,322
Certificates of deposit(5)(6) 2,691,260 811,627 558,870 166,207 133,988 102,190 4,464,142
Borrowings by bank subsidiary(6) 6,479,455 479,527 161,806 110,186 50,000 — 7,280,974
Purchases of loans 601,141 — — — — — 601,141
Originations of loans(7) 1,341,917 — — — — — 1,341,917
Commitments to sell securities (130,460 ) — — — — — (130,460 )
Commitments to purchase securities 241,682 — — — — — 241,682
Total banking obligations 11,233,898 1,300,233 729,755 285,472 193,067 311,293 14,053,718
Total contractual obligations $ 11,384,249 $ 1,417,150 $ 807,046 $ 361,701 $ 626,125 $ 745,087 $ 15,341,358
(1) Includes annual interest or dividend payments; does not assume early redemption under current call provisions.
(2) Estimated based on investment plans of the venture capital funds.
(3) Included in the facilities restructuring accrual.
2003. EDGAR Online, Inc.