eTrade 2005 Annual Report Download - page 64

Table of Contents
The following table presents the allowance for loan losses by major loan category (dollars in thousands):
Consumer & Other
Real Estate
Total
Allowance
Allowancesas%
ofConsumerandOther
Loans Receivable
Allowance
Allowancesas%
of Real Estate
LoansReceivable
Allowance
Allowancesas%
of Total
LoansReceivable
December31, 2005
$
32,379
0.80
%
$
30,907
0.20
%
$
63,286
0.32
%
December31, 2004
$
29,686
0.72
%
$
17,995
0.24
%
$
47,681
0.41
%
The allowance as a percentage of total loans receivable declined in 2005. The lower percentage resulted from a change in the mix of
assets. Our loan portfolio shifted to a higher percentage of mortgage loans, which generally incur lower losses than consumer loans.
Mortgage loans represented 79% of total loans receivable, net at the end of 2005, up from 64% at the end of 2004. The increase in the
allowance allocated to the consumer loans portfolio was the result of an increase in nonperforming RV and marine loans.
The following table provides an analysis of the allowance for loan losses during the past five years (dollars in thousands):
Year Ended December31,
2005
2004
2003
2002
2001
Allowance for loan losses—beginning of year
$
47,681
$
37,847
$
27,666
$
19,874
$
12,565
Loan charge-offs:
Real estate
(936
)
(186
)
(364
)
(460
)
(94
)
HELOC, second mortgage and other
(3,929
)
(1,464
)
(75
)
—
(79
)
RV
(20,592
)
(18,419
)
(20,341
)
(3,456
)
—
Marine
(8,009
)
(6,003
)
(7,369
)
—
—
Automobile
(5,915
)
(13,796
)
(22,695
)
(28,046
)
(5,395
)
Credit card
(17,286
)
(10,313
)
(919
)
—
—
Other
(180
)
(160
)
(1,971
)
—
—
Total loan charge-offs
(56,847
)
(50,341
)
(53,734
)
(31,962
)
(5,568
)
Loan recoveries:
Real estate
234
—
223
30
29
HELOC, second mortgage and other
526
310
—
—
4
RV
7,848
9,088
9,738
—
—
Marine
3,960
3,225
3,806
—
—
Automobile
5,382
7,464
8,335
10,632
669
Credit card
380
141
1
—
—
Other
106
279
541
—
—
Total recoveries
18,436
20,507
22,644
10,662
702
Net charge-offs
(38,411
)
(29,834
)
(31,090
)
(21,300
)
(4,866
)

2006. EDGAR Online, Inc.