eTrade 2004 Annual Report Download - page 23

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 $0.2 million at December 31, 2004, $0.1 million at
December 31, 2003, $0.2 million at December 31, 2002, $2.1 million at December 31, 2001 and $0.4 million at September 30, 2000.
Available-for-sale and trading securities
December 31,
September 30,
2000
2004 2003 2002 2001
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
$
2,812
33.65
%
$
2,360
36.23
%
$
3,343
46.91
%
$
8,716
79.06
%
$
10,554
99.81
%
Home equity lines of credit and second mortgage
15,158
31.11
3,117
16.83
649
4.93
115
0.29
29
0.10
Other
25
0.02
185
0.14
202
0.19
42
0.04
347
0.08
Total real estate loans
17,995
64.78
5,662
53.20
4,194
52.03
8,873
79.39
10,930
99.99
Consumer and other loans:
Recreational vehicle
11,343
22.06
11,386
25.43
9,480
18.98
—
2.49
— —
Marine
4,116
6.22
2,503
6.99
3,108
6.30
—
—
—
—
Automobile
4,195
5.01
11,876
12.94
8,190
20.57
11,001
17.97
—
0.01
Credit card
9,078
1.75
5,583
1.26
— — — — — —
Other
954
0.18
837
0.18
2,694
2.12
—
0.15
—
—
Total consumer and other loans
29,686
35.22
32,185
46.80
23,472
47.97
11,001
20.61
—
0.01
Total allowance for loan losses
$
47,681
100.00
%
$
37,847
100.00
%
$
27,666
100.00
%
$
19,874
100.00
%
$
10,930
100.00
%
Our portfolios of mortgage-backed securities and investments are classified into three categories in accordance with Statement of
Financial Accounting Standards (“SFAS”) No. 115, Accounting for Certain Investments in Debt and Equity Securities : trading, available-for-
sale or held-to-maturity . None of our mortgage-backed securities or other investments was classified as held-to-maturity during 2004, 2003 or
2002.
Our mortgage-backed securities portfolio is composed primarily of:
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 $566.9 million at December 31, 2004,
$821.2 million at December 31, 2003 and $391.8 million at December 31, 2002. The Bank had realized losses from the sales of trading assets
of $0.7 million and $21.5 million for 2004 and 2003, respectively, and realized gains of $3.9 million for 2002. In
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•
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.