eTrade 2004 Annual Report Download - page 105

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Table of Contents
Index to Financial Statements
At December 31, 2004, scheduled maturities of certificates of deposit and brokered certificates of deposit were as follows (in thousands):
Scheduled maturities of certificates of deposit and brokered certificates of deposit with denominations greater than or equal to $100,000
were as follows (in thousands):
Interest expense on deposits in the past three years is summarized as follows (in thousands):
Accrued interest payable on these deposits, which is included in accounts payable, accrued and other liabilities, was $5.1 million at
December 31, 2004 and $2.4 million at December 31, 2003.
E*TRADE FINANCIAL Sweep Deposit Account Relationship
< 1 Year
1-2 Years
2-3 Years
3-
4 Years
4-
5 Years
> 5 Years
Total
Less than 4.00%
$
1,222,790
$
249,064
$
100,362
$
79,552
$
10,471
$
8,675
$
1,670,914
4.00%
–
5.99%
109,150
108,078
133,842
4,627
60,559
9,814
426,070
6.00%
–
7.99%
249,966
3,393
1,135
1,249
666
1,059
257,468
8.00%
–
9.99%
—
—
—
—
36
9,902
9,938
Subtotal
$
1,581,906
$
360,535
$
235,339
$
85,428
$
71,732
$
29,450
2,364,390
Fair value adjustments
(129
)
Total certificates of deposit and brokered certificates of
deposit
$
2,364,261
December 31,
2004
2003
Three months or less
$
216,671
$
238,420
Three through six months
75,990
116,993
Six through twelve months
174,049
257,854
Over twelve months
237,533
367,979
Total
$
704,243
$
981,246
Year Ended December 31,
2004
2003
2002
Sweep deposit account
$
13,226
$
1,313
$
—
Money market accounts
47,288
73,620
89,082
Certificates of deposit
110,577
244,140
Brokered certificates of deposit
9,172
10,147
5,975
Passbook savings accounts
9
14
7
Checking accounts
2,408
2,496
2,501
Total
$
182,680
$
$
341,705
In 2003, the Company 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 sheets, to the banking segment. The
Bank holds these funds as customer deposits in FDIC-insured NOW (Negotiable Order of Withdrawal) and money market deposit accounts.
The banking segment pays the brokerage segment a negotiated fee on the average SDA balances, which is eliminated in consolidation.
96