eTrade 2009 Annual Report Download - page 35

The following table presents enterprise average balance sheet data and enterprise income and expense data for our
operations, as well as the related net interest spread, yields and rates and has been prepared on the basis required by the
SEC’s Industry Guide 3, “Statistical Disclosure by Bank Holding Companies” (dollars in millions):
Year Ended December 31,
2009 2008 2007
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
Enterprise interest-earning assets:
Loans(1) $23,113.6 $1,138.1 4.92% $27,761.9 $1,587.8 5.72% $30,887.1 $1,986.0 6.43%
Margin receivables 3,103.5 138.5 4.46% 5,833.6 278.2 4.77% 7,033.6 502.1 7.14%
Available-for-sale mortgage-backed securities 10,365.7 436.9 4.22% 9,455.4 435.9 4.61% 12,425.4 650.9 5.24%
Available-for-sale investment securities 1,227.6 36.2 2.95% 141.2 9.4 6.63% 3,946.3 259.9 6.59%
Trading securities 21.4 2.6 12.02% 350.5 23.6 6.74% 110.8 11.5 10.38%
Cash and cash equivalents(2) 6,001.4 19.0 0.32% 2,546.3 60.6 2.38% 718.3 34.4 4.79%
Stock borrow and other 669.0 47.8 7.14% 762.5 53.7 7.04% 960.1 69.3 7.21%
Total enterprise interest-earning assets 44,502.2 1,819.1 4.09% 46,851.4 2,449.2 5.22% 56,081.6 3,514.1 6.27%
Non-operating interest-earning assets(3) 3,873.3 5,002.3 5,417.4
Total assets $48,375.5 $51,853.7 $61,499.0
Enterprise interest-bearing liabilities:
Retail deposits:
Sweep deposit accounts $11,022.3 7.6 0.07% $ 9,904.7 40.0 0.40% $11,044.2 102.1 0.92%
Complete savings accounts 11,539.9 140.1 1.21% 9,790.2 331.0 3.37% 6,426.5 313.3 4.87%
Certificates of deposit 1,750.4 45.2 2.58% 3,258.9 137.4 4.22% 4,509.7 224.7 4.98%
Other money market and savings accounts 1,243.7 5.9 0.47% 1,844.9 38.9 2.10% 4,138.6 150.8 3.64%
Checking accounts 797.5 3.0 0.37% 908.0 19.7 2.17% 390.1 5.7 1.46%
Brokered certificates of deposit 193.8 10.0 5.17% 976.1 48.9 5.01% 512.5 25.4 4.96%
Customer payables 4,662.9 8.8 0.19% 4,288.8 29.7 0.69% 5,707.2 67.5 1.18%
Repurchase agreements and other borrowings 7,216.8 216.3 3.00% 7,736.9 318.3 4.11% 12,261.1 643.4 5.25%
Federal Home Loan Bank (“FHLB”) advances 2,900.6 132.6 4.57% 4,667.4 218.9 4.69% 7,071.8 364.4 5.15%
Stock loan and other 513.0 2.4 0.46% 1,075.5 18.6 1.73% 1,298.3 39.7 3.06%
Total enterprise interest-bearing liabilities 41,840.9 571.9 1.37% 44,451.4 1,201.4 2.70% 53,360.0 1,937.0 3.63%
Non-operating interest-bearing liabilities(4) 3,558.5 4,706.3 4,002.6
Total liabilities 45,399.4 49,157.7 57,362.6
Total shareholders’ equity 2,976.1 2,696.0 4,136.4
Total liabilities and shareholders’ equity $48,375.5 $51,853.7 $61,499.0
Excess of enterprise interest-earning assets
over enterprise interest-bearing liabilities/
Enterprise net interest income/Spread $ 2,661.3 $1,247.2 2.72% $ 2,400.0 $1,247.8 2.52% $ 2,721.6 $1,577.1 2.64%
Reconciliation from enterprise net interest income to net operating interest income (dollars in millions):
Year Ended December 31,
2009 2008 2007
Enterprise net interest income(5) $1,247.2 $1,247.8 $1,577.1
Taxable equivalent interest adjustment (2.1) (9.1) (30.9)
Customer cash held by third parties and other(6) 15.5 29.3 37.4
Net operating interest income $1,260.6 $1,268.0 $1,583.6
(1) Nonaccrual loans are included in the respective average loan balances. Income on such nonaccrual loans is recognized on a cash basis.
(2) Includes segregated cash balances.
(3) Non-operating interest-earning assets consist of property and equipment, net, goodwill, other intangibles, net and other assets that do not
generate operating interest income. Some of these assets generate corporate interest income.
(4) Non-operating interest-bearing liabilities consist of corporate debt, accounts payable, accrued and other liabilities that do not generate operating
interest expense. Some of these liabilities generate corporate interest expense.
(5) Enterprise net interest income is taxable equivalent basis net operating interest income excluding corporate interest income and corporate interest
expense, stock conduit interest income and expense and interest earned on customer cash held by third parties. Management believes this
non-GAAP measure is useful to analysts and investors as it is a measure of the net operating interest income generated by our operations.
(6) Includes interest earned on average customer assets of $2.9 billion, $3.2 billion and $3.9 billion for the years ended December 31, 2009, 2008
and 2007, respectively, held by parties outside E*TRADE Financial, including third party money market funds and sweep deposit accounts at
unaffiliated financial institutions. Other consists of net operating interest earned on average stock conduit assets of $1.3 million for the year
ended December 31, 2007. There were not any stock conduit assets at December 31, 2009 or 2008.
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