eTrade 2011 Annual Report Download - page 88

We also raise funds by selling securities under agreements to repurchase the same or similar securities. The
counterparties to these agreements hold the securities in custody. We treat repurchase agreements as borrowings
and secure them with designated fixed- and variable-rate securities. We also participate in the Federal Reserve
Bank’s term investment option and treasury, tax and loan borrowing programs. We use the proceeds from these
transactions to meet our cash flow or asset/liability matching needs.
The following table sets forth information regarding the weighted-average interest rates and the highest and
average month-end balances of borrowings (dollars in millions):
Ending
Balance
Weighted-
Average Rate
(1)
Maximum
Amount at
Month-End
Yearly Weighted-Average
Balance Rate
At or for the year ended December 31, 2011:
Securities sold under agreements to
repurchase $5,015.5 0.95% $5,891.6 $5,417.2 2.83%
FHLB advances and other borrowings (2) $2,732.5 3.19% $2,759.7 $2,741.1 3.87%
At or for the year ended December 31, 2010:
Securities sold under agreements to
repurchase $5,888.3 0.63% $6,458.1 $6,154.3 2.11%
FHLB advances and other borrowings (2) $2,731.4 3.09% $3,102.1 $2,754.3 4.33%
At or for the year ended December 31, 2009:
Securities sold under agreements to
repurchase $6,441.9 0.71% $7,177.9 $6,725.4 2.98%
FHLB advances and other borrowings (2) $2,745.3 3.12% $4,372.4 $3,392.0 4.38%
(1) Excludes hedging costs.
(2) Excludes other borrowings of the parent company of $4.4 million, $0.3 million and $1.6 million at December 31, 2011, 2010 and 2009,
respectively, which do not generate operating interest expense. These liabilities generate corporate interest expense.
GLOSSARY OF TERMS
Active accounts—Accounts with a balance of $25 or more or a trade in the last six months.
Active customers—Customers that have an account with a balance of $25 or more or a trade in the last six
months.
Active Trader—The customer group that includes those who execute 30 or more stock or options trades per
quarter.
Adjusted total assets—E*TRADE Bank-only assets composed of total assets plus/(less) unrealized losses
(gains) on available-for-sale securities, less disallowed deferred tax assets, goodwill and certain other intangible
assets.
Agency—U.S. Government sponsored and federal agencies, such as Federal National Mortgage Association,
Federal Home Loan Mortgage Corporation, Government National Mortgage Association, the Small Business
Administration and the Federal Home Loan Bank.
ALCO—Asset Liability Committee.
AML—Anti-Money Laundering.
APIC—Additional paid-in capital.
Average commission per trade—Total trading and investing segment commissions revenue divided by total
number of trades.
Average equity to average total assets—Average total shareholders’ equity divided by average total assets.
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