eTrade 2009 Annual Report Download - page 72

Nonperforming Assets
We classify loans as nonperforming when they are 90 days past due. The following table shows the
comparative data for nonperforming loans and assets (dollars in millions):
Year Ended December 31,
2009 2008 2007 2006 2005
One- to four-family $ 1,229.7 $ 593.1 $ 181.3 $ 33.6 $ 17.4
Home equity 250.6 341.2 229.5 32.2 9.6
Consumer and other 6.7 7.8 7.6 8.9 7.0
Total nonperforming loans 1,487.0 942.1 418.4 74.7 34.0
Real estate owned (“REO”) and other repossessed assets, net 115.7 108.1 45.9 12.9 6.5
Total nonperforming assets, net $ 1,602.7 $1,050.2 $ 464.3 $ 87.6 $ 40.5
Nonperforming loans receivable as a percentage of gross
loans receivable 7.31% 3.69% 1.37% 0.28% 0.17%
One- to four-family allowance for loan losses as a
percentage of one- to four-family nonperforming loans
receivable 39.84% 31.22% 10.39% 23.10% 27.93%
Home equity allowance for loan losses as a percentage of
home equity nonperforming loans receivable 247.46% 244.34% 200.05% 98.31% 272.25%
Consumer and other allowance for loan losses as a
percentage of consumer and other nonperforming loans
receivable 1082.29% 790.72% 396.71% 316.61% 461.31%
Total allowance for loan losses as a percentage of total
nonperforming loans receivable 79.54% 114.70% 121.44% 90.52% 186.24%
During the year ended December 31, 2009, our nonperforming assets, net increased $552.5 million to $1.6
billion when compared to December 31, 2008. The increase was attributed primarily to a $522.7 million increase
in our one- to four-family loans delinquent in excess of 180 days for the year ended December 31, 2009 when
compared to December 31, 2008. This increase was due primarily to the extensive amount of time it takes to
foreclose on a property in the current real estate market.
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