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Table of Contents
Index to Financial Statements
Financial information for the Company’s reportable segments is presented in the following tables (in thousands):
122
Year Ended December 31, 2004
Brokerage
Banking
Eliminations
(1)
Total
Net revenues:
Commissions
$
349,539
$
—
$
—
$
349,539
Principal transactions
252,162
—
—
252,162
Interest income
177,362
968,411
—
1,145,773
Interest expense
(18,524
)
(491,931
)
—
(
510,455
)
Gain on sales of originated loans
—
71,561
—
71,561
Gain on sales of loans held-for-sale and
securities, net
—
57,853
—
57,853
Provision for loan losses
—
(
38,121
)
—
(
38,121
)
Other revenues
213,759
35,988
(50,073
)
199,674
Net revenues
974,298
603,761
(50,073
)
1,527,986
Expenses excluding interest:
Compensation and benefit
240,823
141,361
—
382,184
Occupancy and equipment
51,824
26,420
—
78,244
Communications
67,827
6,732
—
74,559
Professional services
42,036
28,790
—
70,826
Commissions, clearance and floor brokerage
156,801
13
—
156,814
Advertising and market development
44,088
71,658
(50,073
)
65,673
Servicing and other banking expenses
466
36,059
—
36,525
Fair value adjustments of financial derivatives
—
(
2,299
)
—
(
2,299
)
Depreciation and amortization
63,132
19,721
—
82,853
Amortization of other intangibles
18,335
8,564
—
26,899
Facility restructuring and other exit charges
7,565
8,592
—
16,157
Acquisition
-
related expenses
—
248
—
248
Other
56,904
37,159
—
94,063
Total expenses excluding interest
749,801
383,018
(50,073
)
1,082,746
Segment income
$
224,497
$
220,743
$
—
$
445,240
(1)
Reflects the elimination of an intercompany payment made by the banking segment to the brokerage segment related to the SDA product, which was initiated in 2003. Under this
relationship, the banking segment pays the brokerage segment a negotiated rate that approximates market on the average SDA balance. The banking segment reflects this payment as
marketing expense as it is a fee associated with deposit gathering activity and the brokerage segment reflects this payment as other revenue as it is a fee for access to customers.