eTrade 2003 Annual Report Download - page 83

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Table of Contents
Index to Financial Statements
Interest income is not accrued for loans classified as nonperforming and any income accrued through the initial 90-day delinquency is
reversed. Had these loans been current at December 31, 2003, the Company would have recognized $1.1 million, $1.4 million and $1.3 million
of additional income in 2003, in 2002 and in 2001, respectively. During 2003, the Company recognized $0.2 million of interest on loans that
were in nonaccrual at December 31, 2003. At December 31, 2003, there were no commitments to lend additional funds to any of these
borrowers.
Activity in the allowance for loan losses is summarized as follows (in thousands):
Impaired loans, which consist of nonaccrual loan secured by one-to-four family residences, are presented in the following table (in
thousands):
The average recorded investment in impaired loans was $2.5 million for 2003 and $2.6 million for 2002.
NOTE 8—PROPERTY AND EQUIPMENT, NET
Year Ended December 31,
2003
2002
2001
Allowance for loan losses, beginning of year
$
27,666
$
19,874
$
12,565
Provision for loan losses
38,523
14,664
7,476
Acquired through acquisitions
2,748
14,428
4,699
Charge
-
offs
(53,734
)
(31,962
)
(5,568
)
Recoveries
22,644
10,662
702
Allowance for loan losses, end of year
$
37,847
$
27,666
$
19,874
Total Recorded
Investment in
Impaired Loans
Amount of
Specific
Allowance
Amount of Recorded
Investment Net of
Specific Allowance
December 31, 2003
$
3,140
$
(136
)
$
3,004
December 31, 2002
$
3,429
$
(166
)
$
3,263
Property and equipment, net consists of the following (in thousands):
Depreciation and amortization expense related to property and equipment was $94.7 million for 2003, $108.5 million for 2002 and $136.0
million for 2001.
Included in equipment and transportation, software, buildings and furniture and fixtures, are capital leases (gross), of $13.5 million at
December 31, 2003 and $45.9 million December 31, 2002. Total accumulated amortization of these leases was $7.4 million at December 31,
2003 and $39.1 million at December 31, 2002.
70
December 31,
2003
2002
Equipment and transportation
$
217,734
$
210,308
Software
296,069
300,304
Leasehold improvements
77,994
109,794
Buildings
73,827
73,827
Land
7,233
8,097
Furniture and fixtures
9,080
8,786
Total property and equipment, gross
681,937
711,116
Less accumulated depreciation and amortization
(380,679
)
(340,172
)
Total property and equipment, net
$
301,258
$
370,944