eTrade 2010 Annual Report Download - page 54
Download and view the complete annual report
Please find page 54 of the 2010 eTrade annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44 -
45 -
46 -
47 -
48 -
49 -
50 -
51 -
52 -
53 -
54 -
55 -
56 -
57 -
58 -
59 -
60 -
61 -
62 -
63 -
64 -
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
-
185
-
186
-
187
-
188
-
189
-
190
-
191
-
192
-
193
-
194
-
195
 |
 |
Securities
Trading, available-for-sale and held-to-maturity securities are summarized as follows (dollars in millions):
Variance
December 31, 2010 vs. 2009
2010 2009 Amount %
Trading securities $ 62.2 $ 38.3 $ 23.9 62%
Available-for-sale securities:
Residential mortgage-backed securities:
Agency mortgage-backed securities and CMOs $12,898.1 $ 8,966.9 $ 3,931.2 44%
Non-agency CMOs 395.4 375.1 20.3 5%
Total residential mortgage-backed securities 13,293.5 9,342.0 3,951.5 42%
Investment securities 1,512.2 3,977.7 (2,465.5) (62)%
Total available-for-sale securities $14,805.7 $13,319.7 $ 1,486.0 11%
Held-to-maturity securities:
Agency mortgage-backed securities and CMOs $ 1,928.6 $ — $ 1,928.6 *
Investment securities 534.1 — 534.1 *
Total held-to-maturity securities $ 2,462.7 $ — $ 2,462.7 *
Total securities $17,330.6 $13,358.0 $ 3,972.6 30%
* Percentage not meaningful.
Securities represented 37% and 28% of total assets at December 31, 2010 and 2009, respectively. The
increase in securities classified as available-for-sale was due primarily to the purchase of $3.9 billion in agency
mortgage-backed securities and CMOs, partially offset by the sale or call of agency debentures. We also
purchased $2.5 billion of agency mortgage-backed securities and CMOs and investment securities during the
year ended December 31, 2010 and classified them as held-to-maturity securities to better match the investment
of customer sweep deposits.
Loans, Net
Loans, net are summarized as follows (dollars in millions):
Variance
December 31, 2010 vs. 2009
2010 2009 Amount %
Loans held-for-sale $ 5.5 $ 7.9 $ (2.4) (30)%
One- to four-family 8,170.3 10,567.1 (2,396.8) (23)%
Home equity 6,410.3 7,769.7 (1,359.4) (17)%
Consumer and other 1,443.4 1,841.3 (397.9) (22)%
Unamortized premiums, net 129.1 171.6 (42.5) (25)%
Allowance for loan losses (1,031.2) (1,182.7) 151.5 (13)%
Total loans, net $15,127.4 $19,174.9 $(4,047.5) (21)%
Loans, net decreased 21% to $15.1 billion at December 31, 2010 from $19.2 billion at December 31, 2009.
This decline was due primarily to our strategy of reducing balance sheet risk by allowing our loan portfolio to
pay down, which we plan to do for the foreseeable future. In addition, during the second quarter of 2010, we
securitized or sold approximately $232 million of our one- to four-family loans through transactions with Fannie
Mae, which resulted in a gain of $6.5 million. For the foreseeable future, we do not plan to securitize or sell any
of our remaining one- to four-family loans in our held-for-investment portfolio.
51