eTrade 2009 Annual Report Download - page 75

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During the year ended December 31, 2009, special mention loans decreased by $230.6 million to $804.5
million. This decrease was largely due to a decrease in home equity special mention loans. The decrease in home
equity special mention loans includes the impact of our loan modification programs in which borrowers who
were 30 to 89 days past due were made current(1). While our level of special mention loans can fluctuate
significantly in any given period, we believe the decrease we observed in 2009 is an encouraging sign regarding
the future credit performance of this portfolio.
The following graph illustrates the special mention loans by quarter:
Special Mention Loans Trend
$0
$200
$400
$600
$800
$1,000
$1,200
Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09
Quarter ended
Special mention loans (dollars in millions)
One- to four-family Home equity Consumer and other Total
(1) Loans modified as TDRs are accounted for as nonaccrual loans at the time of modification and return to accrual status after six
consecutive payments are made in accordance with the modified terms.
72