eTrade 2006 Annual Report Download - page 60

Distribution of Assets, Liabilities and Shareholder’s Equity; Interest Rates and Operating Interest Differential
The following table presents average balance data and operating interest income and expense data for our
banking operations, as well as the related interest yields and rates and interest spread (dollars in thousands):
Year Ended December 31,
2006 2005 2004
Average
Balance
Operating
Interest
Inc./Exp.
Average
Yield /
Cost
Average
Balance
Operating
Interest
Inc./Exp.
Average
Yield /
Cost
Average
Balance
Operating
Interest
Inc./Exp.
Average
Yield /
Cost
Interest-earning banking assets:
Loans, net(1) $22,193,663 $1,364,873 6.15% $15,488,527 $ 828,717 5.35% $10,065,174 $490,550 4.87%
Mortgage-backed and related
available-for-sale securities 11,543,546 590,512 5.12% 9,421,988 401,782 4.26% 8,300,536 331,460 3.99%
Available-for-sale investment
securities 3,068,474 193,583 6.31% 2,715,985 140,041 5.16% 3,151,515 127,429 4.04%
Trading securities 132,454 11,388 8.60% 268,092 12,342 4.60% 712,819 22,692 3.18%
Other 45,460 2,115 4.65% 53,252 1,566 2.94% 101,622 3,286 3.23%
Total interest-earning
banking assets(2) 36,983,597 2,162,471 5.85% 27,947,844 1,384,448 4.95% 22,331,666 975,417 4.37%
Non-interest-earning banking
assets 552,664 451,161 489,282
Total banking assets $37,536,261 $28,399,005 $22,820,948
Interest-bearing banking liabilities:
Retail deposits:
Sweep deposit accounts $10,393,857 87,714 0.84% $ 6,683,454 36,147 0.54% $ 5,008,953 13,226 0.26%
Money market and savings
accounts 5,806,811 231,602 3.99% 3,604,326 89,073 2.47% 3,792,778 47,297 1.25%
Certificates of deposit(5) 3,851,463 183,828 4.77% 2,276,709 88,733 3.90% 2,564,914 110,577 4.31%
Checking accounts 355,403 3,347 1.10% 387,146 2,679 0.69% 353,688 2,408 0.68%
Brokered certificates of
deposit(6) 535,835 24,726 4.61% 450,441 15,680 3.48% 358,665 9,172 2.56%
Repurchase agreements and
other borrowings 10,980,134 549,085 5.00% 10,115,764 374,337 3.70% 8,139,736 259,196 3.18%
FHLB advances 3,488,184 165,545 4.75% 3,260,556 126,495 3.88% 1,168,519 50,055 4.28%
Total interest-bearing
banking liabilities 35,411,687 1,245,847 3.52% 26,778,396 733,144 2.73% 21,387,253 491,931 2.30%
Non-interest-bearing banking
liabilities 355,026 308,719 345,553
Total banking liabilities 35,766,713 27,087,115 21,732,806
Total banking
shareholder’s equity 1,769,548 1,311,890 1,088,142
Total banking liabilities
and shareholder’s equity $37,536,261 $28,399,005 $22,820,948
Excess of interest-earning banking
assets over interest-bearing
banking liabilities/net operating
interest income $ 1,571,910 $ 916,624 $ 1,169,448 $ 651,304 $ 944,413 $483,486
Bank net operating interest:
Spread 2.33% 2.22% 2.07%
Margin (net yield on interest-
earning banking assets) 2.48% 2.33% 2.17%
Ratio of interest-earning banking
assets to interest-bearing
banking liabilities 104.44% 104.37% 104.42%
Return on average:(3)(4)
Total banking assets 1.03% 1.04% 0.90%
Total banking shareholder’s
equity 21.86% 22.41% 19.08%
Average equity to average total
banking assets 4.71% 4.62% 4.77%
(1) Nonaccrual loans are included in the respective average loan balances. Income on such nonaccrual loans is recognized on a cash basis.
(2) Amount includes a taxable equivalent increase in operating interest income of $19.3 million, $10.5 million and $7.0 million for 2006,
2005 and 2004, respectively.
(3) Ratio calculations exclude discontinued operations.
(4) Ratio calculations are based on stand alone Bank results.
(5) Includes retail certificates of deposit including retail brokered certificates of deposit.
(6) Includes institutional certificates of deposit.
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