eTrade 2009 Annual Report Download - page 87

Lending Activities
The following table presents the balance and associated percentage of each major loan category in our
portfolio (dollars in millions):
December 31,
2009 2008 2007 2006 2005
Balance % Balance % Balance % Balance % Balance %
One- to four-family $10,567.1 52.4% $12,979.8 51.3% $15,607.4 51.5% $11,150.0 42.4% $ 7,178.9 37.3%
Home equity 7,769.7 38.5 10,017.2 39.6 11,901.3 39.2 11,809.1 44.8 8,106.9 42.1
Consumer and
other: 1,841.3 9.1 2,298.6 9.1 2,823.3 9.3 3,372.9 12.8 3,966.1 20.6
Total loans 20,178.1 100.0% 25,295.6 100.0% 30,332.0 100.0% 26,332.0 100.0% 19,251.9 100.0%
Adjustments:
Premiums
(discounts)
and deferred
fees on loans 171.6 236.8 315.5 391.8 323.7
Allowance for
loan losses (1,182.7) (1,080.6) (508.1) (67.6) (63.3)
Total
adjustments (1,011.1) (843.8) (192.6) 324.2 260.4
Loans, net(1)(2) $19,167.0 $24,451.8 $30,139.4 $26,656.2 $19,512.3
(1) Excludes loans held-for-sale of $7.9 million at December 31, 2009. The third party company providing this product performs all
processing and underwriting of these loans and is responsible for the credit risk associated with these loans, which minimizes our
assumption of any of the typical risks commonly associated with mortgage lending. There is a short period of time after closing of the
loans in which we record the originated loan as held-for-sale prior to the third party company purchasing the loan.
(2) Includes loans held-for-sale, principally one- to four-family real estate loans of $0.1 billion, $0.3 billion and $0.1 billion at December 31
2007, 2006, and 2005, respectively. There were no loans held-for-sale at December 31, 2008. Loans held-for-sale are accounted for at
lower of cost or fair value with adjustments recorded in the gains (losses) on loans and securities, net line item and are not considered in
the allowance for loan losses.
The following table shows the contractual maturities of our loan portfolio at December 31, 2009, including
scheduled principal repayments. This table does not, however, include any estimate of prepayments. These
prepayments could significantly shorten the average loan lives and cause the actual timing of the loan repayments
to differ from those shown in the following table (dollars in millions):
Due in(1)
< 1 Year 1-5 Years > 5 Years Total
One- to four-family $173.8 $ 807.2 $ 9,586.1 $10,567.1
Home equity 448.3 2,088.3 5,233.1 7,769.7
Consumer and other 243.4 545.1 1,052.8 1,841.3
Total loans(2) $865.5 $3,440.6 $15,872.0 $20,178.1
(1) Estimated scheduled principal repayments are calculated using weighted-average interest rate and weighted-average remaining maturity
of each loan portfolio.
(2) Excludes loans held-for-sale of $7.9 million at December 31, 2009. The third party company providing this product performs all
processing and underwriting of these loans and is responsible for the credit risk associated with these loans, which minimizes our
assumption of any of the typical risks commonly associated with mortgage lending. There is a short period of time after closing of the
loans in which we record the originated loan as held-for-sale prior to the third party company purchasing the loan.
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