eTrade 2003 Annual Report Download - page 23

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Table of Contents
Index to Financial Statements
The following table shows the scheduled maturities, carrying values and current yields for the Bank’s available-for-sale and trading
investment portfolio at December 31, 2003 (dollars in thousands):
Deposits and Other Sources of Funds
After One But
Within Five Years
After Five But
Within
Ten Years
After Ten Years
Total
Balance
Due
Weighted
-
Average
Yield
Balance
Due
Weighted
-
Average
Yield
Balance Due
Weighted
-
Average
Yield
Balance
Due
Weighted
-
Average
Yield
Mortgage
-
backed securities:
Fannie Mae
$
—
—
%
$
—
—
%
$
2,860,218
5.06
%
$
2,860,218
5.06
%
CMO
—
—
%
60
6.50
%
2,649,455
5.25
%
2,649,515
5.25
%
Ginnie Mae
—
—
%
—
—
%
2,339,065
5.43
%
2,339,065
5.43
%
Freddie Mac
—
—
%
5
10.00
%
138,224
4.30
%
138,229
4.30
%
Private issuer and other
—
—
%
3,861
4.22
%
6,604
6.01
%
10,465
5.33
%
Total mortgage
-
backed securities
—
—
%
3,926
4.25
%
7,993,566
5.22
%
7,997,492
5.22
%
Investment securities:
Municipal bonds(1)
675
4.64
%
1,145
4.85
%
43,086
5.26
%
44,906
5.24
%
Corporate debt
16,136
6.88
%
10,688
6.88
%
95,759
2.64
%
122,583
3.53
%
Asset
-
backed
48,660
3.61
%
74,686
3.25
%
1,876,893
4.10
%
2,000,239
4.05
%
Publicly traded equity securities(2)
—
—
%
—
—
%
161,000
4.03
%
161,000
4.03
%
Other investments
—
—
%
85,152
4.38
%
1,065
—
%
86,217
4.28
%
Total investment (trading) securities
65,471
4.38
%
171,671
4.02
%
2,177,803
4.05
%
2,414,945
4.05
%
Total available-for-sale and trading
securities
$
65,471
$
175,597
$
10,171,369
$
10,412,437
(1) Yields on tax-exempt obligations are computed on a tax-equivalent basis.
(2)
Preferred stock in Freddie Mac and Fannie Mae, no stated maturity date.
The following table presents information about the Bank’s deposits by category (dollars in thousands):
In 2003, we introduced the E*TRADE FINANCIAL Sweep Deposit Account (“SDA”). The SDA is a sweep product that transfers
Brokerage Segment customer balances, previously held in money market funds not on our balance sheet, to the Banking Segment. The Bank
carries these balances as customer deposits in FDIC-insured money market accounts. The Banking Segment pays the Brokerage Segment a
negotiated fee on the average SDA balances, which is eliminated in consolidation.
15
Year Ended December 31,
2003
2002
2001
Average
Balance for
the Year
Percentage
of Deposits
Average
Rate
Average
Balance for
the Year
Percentage
of Deposits
Average
Rate
Average
Balance for
the Year
Percentage
of Deposits
Average
Rate
Money market
$
4,368,697
45.37
%
1.69
%
$
3,796,466
44.94
%
2.35
%
$
1,644,951
22.86
%
2.78
%
Sweep deposit account
877,322
9.11
0.15
%
—
—
—
%
—
—
—
%
Certificates of deposit
3,749,320
38.94
3.52
%
4,223,899
49.99
4.56
%
5,337,933
74.18
5.28
%
Brokered certificates of deposit
365,162
3.79
2.78
%
205,239
2.43
2.91
%
29,236
0.40
6.86
%
Demand accounts
267,763
2.78
0.93
%
222,953
2.64
1.12
%
183,530
2.55
1.44
%
Passbook savings
780
0.01
1.79
%
225
—
3.11
%
375
0.01
2.99
%
Total
$
9,629,044
100.00
%
$
8,448,782
100.00
%
$
7,196,025
100.00
%