eTrade 2011 Annual Report Download - page 70
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We evaluate the re-delinquency rates in order to monitor TDR performance. We also monitor the average
re-delinquency rates for TDRs twelve months after the modification occurred, which are based on cumulative
performance since the modification program began.
The following table shows the average re-delinquency rates for TDRs twelve months after the modification
occurred:
One- to Four
-Family Home Equity
December 31, 2011 29% 42%
September 30, 2011 28% 42%
June 30, 2011 31% 43%
March 31, 2011 36% 44%
December 31, 2010 42% 45%
Net Charge-offs
The following table provides an analysis of the allowance for loan losses and net charge-offs for the past
five years (dollars in millions):
Year Ended December 31,
2011 2010 2009 2008 2007
Allowance for loan losses, beginning of period $1,031.2 $1,182.7 $ 1,080.6 $ 508.2 $ 67.6
Provision for loan losses 440.6 779.4 1,498.1 1,583.7 640.1
Charge-offs:
One- to four-family (228.9) (302.6) (364.3) (138.0) (5.7)
Home equity (457.3) (600.0) (966.3) (820.2) (168.1)
Consumer and other (59.3) (80.3) (111.6) (84.8) (53.9)
Total charge-offs (745.5) (982.9) (1,442.2) (1,043.0) (227.7)
Recoveries:
One- to four-family 20.8 — — 0.4 0.5
Home equity 58.1 26.6 15.3 8.2 4.4
Consumer and other 17.6 25.4 30.9 23.1 23.3
Total recoveries 96.5 52.0 46.2 31.7 28.2
Net charge-offs (649.0) (930.9) (1,396.0) (1,011.3) (199.5)
Allowance for loan losses, end of period $ 822.8 $1,031.2 $ 1,182.7 $ 1,080.6 $ 508.2
Net charge-offs to average loans receivable outstanding 4.42% 5.10% 6.04% 3.64% 0.65%
The following table allocates the allowance for loan losses by loan category (dollars in millions):
December 31,
2011 2010 2009 2008 2007
Amount %(1) Amount %(1) Amount %(1) Amount %(1) Amount %(1)
One- to four-family $314.2 50.7% $ 389.6 51.0% $ 489.9 52.4% $ 185.2 51.3% $ 18.8 51.3%
Home equity 463.3 40.8 576.1 40.0 620.0 38.5 833.8 39.6 459.2 39.4
Consumer and other 45.3 8.5 65.5 9.0 72.8 9.1 61.6 9.1 30.2 9.3
Total allowance for
loan losses $822.8 100.0% $1,031.2 100.0% $1,182.7 100.0% $1,080.6 100.0% $508.2 100.0%
(1) Represents percentage of loans receivable in the category to total loans receivable, excluding premiums (discounts).
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