eTrade 2005 Annual Report Download - page 86

Table of Contents
Increases and decreases in interest income and interest expense result from changes in average balances (volume) of interest-earning
banking assets and liabilities, as well as changes in average interest rates (rate.) The following table shows the effect that these factors
had on the interest earned on our interest-earning banking assets and the interest incurred on our interest-bearing banking liabilities.
The effect of changes in volume is determined by multiplying the change in volume by the previous year’s average yield/cost.
Similarly, the effect of rate changes is calculated by multiplying the change in average yield/cost by the previous year’s volume.
Changes applicable to both volume and rate have been allocated proportionately (in thousands):
2005 Compared to 2004
Increase (Decrease) Due To
2004 Compared to 2003
Increase (Decrease) Due To
Volume
Rate
Total
Volume
Rate
Total
Interest-earning banking
assets:
Loans, net
$
286,205
$
51,962
$
338,167
$
117,505
$
(10,960
)
$
106,545
Mortgage-backed and related
available-for-sale securities
46,805
23,517
70,322
63,159
12,499
75,658
Available-for-sale investment
securities
(22,977
)
31,923
8,946
42,058
(5,360
)
36,698
Trading securities
(17,841
)
7,491
(10,350
)
7,167
(634
)
6,533
Other
1,018
928
1,946
(2,256
)
1,326
(930
)
Total interest-earning banking
assets
(1)
293,210
115,821
409,031
227,633
(3,129
)
224,504
Interest-bearing banking
liabilities:
Retail deposits
19,287
23,837
43,124
(16,844
)
(72,665
)
(89,509
)
Brokered certificates of deposit
2,699
3,809
6,508
(177
)
(798
)
(975
)
Repurchase agreements and
other borrowings
69,040
46,101
115,141
65,125
33,990
99,115
FHLB advances
81,585
(5,145
)
76,440
10,122
(2,646
)
7,476
Total interest-bearing banking
liabilities
172,611
68,602
241,213
58,226
(42,119
)
16,107
Change in net interest income
$
120,599
$
47,219
$
167,818
$
169,407
$
38,990
$
208,397
(1)
Amount includes a taxable equivalent increase in interest income of $10.5 million, $7.0 million and $2.4 million in 2005, 2004 and 2003, respectively.
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2006. EDGAR Online, Inc.