eTrade 2003 Annual Report Download - page 21

Table of Contents
Index to Financial Statements
The following table allocates the allowance for loan losses by loan category. This allocation does not necessarily restrict the use of the
allowance for loan losses to the categories shown below (dollars in thousands):
The preceding table includes specific reserves related to nonperforming loans totaling $0.1 million at December 31, 2003, $0.2 million at
December 31, 2002, $2.1 million at December 31, 2001, $0.4 million at September 30, 2000 and $0.4 million at September 30, 1999.
Available-for-sale and trading securities
December 31, September 30,
2003
2002 2001 2000 1999
Amount
% of
Loans in
Category
to Total
Loans
Amount
% of
Loans in
Category
to Total
Loans
Amount
% of
Loans in
Category
to Total
Loans
Amount
% of
Loans in
Category
to Total
Loans
Amount
% of
Loans in
Category
to Total
Loans
Real estate loans:
One-to four-family $
2,360
36.23
%
$
3,343
46.92
%
$
8,716
79.06
%
$
10,554
99.81
%
$
7,055
99.67
%
Home equity lines of credit and second
mortgage
3,117
16.83
649
4.93
115
0.29
29
0.10
9
0.05
Multi-family — — — —
3
—
3
0.01
23
0.06
Commercial
184
0.14
201
0.19
30
0.03
336
0.06
53
0.14
Mixed-use and land
1
—
1
—
9
0.01
8
0.01
17
0.05
Total real estate loans
5,662
53.20
4,194
52.04
8,873
79.39
10,930
99.99
7,157
99.97
Consumer loans:
Recreational vehicle
11,386
25.43
9,480
18.98
— — — — — —
Automobile
11,876
12.94
8,190
20.57
11,001
20.46
—
—
—
—
Marine
2,503
6.99
3,108
6.30
— — — — — —
Credit card
5,583
1.26
— — — — — — — —
Lease financing
493
0.03
511
0.04
—
—
—
—
—
—
Other consumer
344
0.15
2,183
2.07
—
0.15
—
0.01
4
0.03
Total consumer loans
32,185
46.80
23,472
47.96
11,001
20.61
—
0.01
4
0.03
Total allowance for loan losses $
37,847
100.00
%
$
27,666
100.00
%
$
19,874
100.00
%
$
10,930
100.00
%
$
7,161
100.00
%
We have portfolios of mortgage-backed securities and investments, which we classify in one of three categories: trading, available-for-
sale or held-to-maturity in accordance with Statement of Financial Accounting Standards (“SFAS”) No. 115, Accounting for Certain
Investments in Debt and Equity Securities.
None of our mortgage-backed securities or other investments were classified as held-to-maturity
during 2003, 2002 or 2001.
Our portfolio of mortgage-backed securities is primarily composed of the following:
We buy and hold mortgage-backed trading securities principally for the purpose of selling them in the near term. These securities are
carried at market value and any realized or unrealized gains and losses are reflected in our consolidated statements of operations as gain on
sales of loans held-for-sale and securities, net. The amount of trading securities the Bank held was $821.2 million at December 31, 2003,
$391.8 million at December 31,
13
•
privately insured mortgage pass-through securities;
•
Government National Mortgage Association (“Ginnie Mae”) participation certificates, guaranteed by the full faith and credit of the
United States;
•
Federal National Mortgage Association (“Fannie Mae”) participation certificates, guaranteed by Fannie Mae;
•
Federal Home Loan Mortgage Corporation (“Freddie Mac”) participation certificates, guaranteed by Freddie Mac; and
•
securities issued by other non-agency organizations.