eTrade 2011 Annual Report Download - page 37

Year Ended December 31,
2011 2010 2009
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) $14,689.8 $ 692.1 4.71% $18,302.2 $ 879.0 4.80% $23,113.6 $1,138.1 4.92%
Margin receivables 5,374.8 221.7 4.13% 4,532.5 200.3 4.42% 3,103.5 138.5 4.46%
Available-for-sale securities 15,326.5 422.5 2.76% 13,275.9 387.5 2.92% 11,593.3 473.1 4.08%
Held-to-maturity securities 4,177.1 136.9 3.28% 1,085.8 35.9 3.31% — — —
Cash and equivalents 1,618.9 3.2 0.20% 2,414.3 5.4 0.22% 4,215.7 14.8 0.35%
Segregated cash and investments 915.6 0.9 0.10% 857.1 1.9 0.22% 1,785.7 4.2 0.23%
Securities borrowed and other 620.9 48.8 7.85% 662.9 29.4 4.43% 690.4 50.4 7.30%
Total enterprise interest-earning assets 42,723.6 1,526.1 3.57% 41,130.7 1,539.4 3.74% 44,502.2 1,819.1 4.09%
Non-operating interest-earning and non-
interest earning assets(2) 4,339.5 4,395.1 3,873.3
Total assets $47,063.1 $45,525.8 $48,375.5
Enterprise interest-bearing liabilities:
Retail deposits:
Sweep deposits $17,513.1 13.4 0.08% $14,014.4 10.1 0.07% $11,022.3 7.6 0.07%
Complete savings deposits 6,174.4 16.1 0.26% 7,577.0 28.6 0.38% 11,539.9 140.1 1.21%
Other money market and savings
deposits 1,071.5 2.5 0.23% 1,114.6 2.8 0.25% 1,243.7 5.9 0.47%
Checking deposits 783.2 0.8 0.10% 761.9 0.9 0.11% 797.5 3.0 0.37%
Certificates of deposit 270.7 7.3 2.70% 795.3 14.5 1.82% 1,750.4 45.2 2.58%
Brokered certificates of deposit 48.8 2.7 5.58% 115.3 5.9 5.14% 193.8 10.0 5.17%
Customer payables 5,456.3 8.6 0.16% 4,713.2 7.0 0.15% 4,662.9 8.8 0.19%
Securities sold under agreements to
repurchase 5,417.2 153.1 2.83% 6,154.3 129.6 2.11% 6,725.4 200.1 2.98%
Federal Home Loan Bank (“FHLB”)
advances and other borrowings 2,741.1 106.2 3.87% 2,754.3 119.3 4.33% 3,392.0 148.8 4.38%
Securities loaned and other 634.8 1.5 0.23% 622.4 1.6 0.26% 513.0 2.4 0.46%
Total enterprise interest-bearing
liabilities 40,111.1 312.2 0.78% 38,622.7 320.3 0.83% 41,840.9 571.9 1.37%
Non-operating interest-bearing and non-
interest bearing liabilities(3) 2,285.9 2,876.4 3,558.5
Total liabilities 42,397.0 41,499.1 45,399.4
Total shareholders’ equity 4,666.1 4,026.7 2,976.1
Total liabilities and shareholders’
equity $47,063.1 $45,525.8 $48,375.5
Excess of enterprise interest-earning
assets over enterprise interest-bearing
liabilities/Enterprise net interest
income/Spread $ 2,612.5 $1,213.9 2.79% $ 2,508.0 $1,219.1 2.91% $ 2,661.3 $1,247.2 2.72%
Reconciliation from enterprise net interest income to net operating interest income (dollars in millions):
Year Ended December 31,
2011 2010 2009
Enterprise net interest income $1,213.9 $1,219.1 $1,247.2
Taxable equivalent interest adjustment (1.2) (1.2) (2.1)
Customer cash held by third parties and other(4) 7.3 8.4 15.5
Net operating interest income $1,220.0 $1,226.3 $1,260.6
(1) Nonaccrual loans are included in the respective average loan balances. Income on such nonaccrual loans is recognized on a cash basis.
(2) Non-operating interest-earning and non-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.
(3) Non-operating interest-bearing and non-interest bearing liabilities consist of corporate debt and other liabilities that do not generate
operating interest expense. Some of these liabilities generate corporate interest expense.
(4) Includes interest earned on average customer assets of $3.7 billion, $3.1 billion and $2.9 billion for the years ended December 31, 2011,
2010 and 2009, respectively, held by parties outside the Company, including third party money market funds and sweep deposit accounts
at unaffiliated financial institutions.
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