eTrade 2005 Annual Report Download - page 71

Table of Contents
The increase in the SDA was driven equally by organic growth of existing customer balances and conversions from money market
funds. The increase in money market accounts was the result of our focused attention to sales and retention efforts for these
customers, as well as the overall impact of E*TRADE Complete Cash Optimizer. E*TRADE Complete Cash Optimizer enables
customers to determine the optimal use of their funds and has resulted in higher money market and certificate of deposit balances. The
SDA, money market accounts and certificates of deposit generally provide us the benefit of lower interest costs, compared with
wholesale funding. The increases in the balances of these accounts are the product of the core customer relationship that we maintain
within our retail segment. The increase in certificates of deposit reflects the renewed customer interest in the product as a result of
focused retention efforts coupled with a higher overall interest rates offered in this product.
Average deposits increased by $1.3 billion in 2005 compared to 2004. Average rates paid increased slightly as market interest rates
increased throughout 2005. The table below shows average deposit and rates paid for the three years ending (dollars in thousands):
Year Ended December31,
2005
2004
2003
Average
Balance for
the Year
Percentage
of Total
Average
Rate
Average
Balance for
the Year
Percentage
of Total
Average
Rate
Average
Balancefor
the Year
Percentage
of Total
Average
Rate
Sweep deposit
account
$
6,683,454
50
%
0.54
%
$
5,008,953
42
%
0.26
%
$
877,322
9
%
0.15
%
Money market and
savings accounts
3,604,326
27
2.47
%
3,792,778
31
1.25
%
4,369,477
45
1.69
%
Certificates of
deposit
2,276,709
17
3.90
%
2,564,914
21
4.31
%
3,749,320
39
3.52
%
Brokered certificates
of deposit
450,441
3
3.48
%
358,665
3
2.56
%
365,162
4
2.78
%
Checking accounts
387,146
3
0.69
%
353,688
3
0.68
%
267,763
3
0.93
%
Total average
deposits
$
13,402,076
100
%
1.73
%
$
12,078,998
100
%
1.51
%
$
9,629,044
100
%
2.84
%
Securities Sold Under Agreements to Repurchase and Other Borrowings by Bank Subsidiary
Securities sold under agreements to repurchase and other borrowings by Bank subsidiary are summarized as follows (in thousands):
As of December31,
Variance
2005
2004
2005vs.2004
Securities sold under agreements to repurchase
$
11,101,542
$
9,897,191
12
%
FHLB advances
$
3,856,106
$
1,487,841
159
%
Subordinated debentures
305,046
255,300
19
%
Other
5,440
17,591
(69
)
%
Total other borrowings by Bank subsidiary
$
4,166,592
$
1,760,732
137
%
Securities sold under agreements to repurchase increased by 12% compared to December31, 2004. These borrowings coupled with

2006. EDGAR Online, Inc.