eTrade 2012 Annual Report Download - page 107

E*TRADE FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME (LOSS)
(In thousands, except per share amounts)
Year Ended December 31,
2012 2011 2010
Revenue:
Operating interest income $ 1,371,098 $ 1,532,339 $ 1,546,713
Operating interest expense (286,033) (312,380) (320,430)
Net operating interest income 1,085,065 1,219,959 1,226,283
Commissions 377,843 436,243 431,000
Fees and service charges 122,170 130,452 142,377
Principal transactions 93,156 105,359 103,346
Gains on loans and securities, net 200,366 120,233 166,212
Other-than-temporary impairment (“OTTI”) (19,799) (9,190) (41,510)
Less: noncredit portion of OTTI recognized into (out of) other
comprehensive income (loss) (before tax) 2,874 (5,717) 3,840
Net impairment (16,925) (14,907) (37,670)
Other revenues 37,821 39,260 46,327
Total non-interest income 814,431 816,640 851,592
Total net revenue 1,899,496 2,036,599 2,077,875
Provision for loan losses 354,637 440,614 779,412
Operating expense:
Compensation and benefits 352,725 333,646 325,044
Advertising and market development 139,451 145,172 132,150
Clearing and servicing 128,635 147,052 147,493
FDIC insurance premiums 117,240 105,442 77,728
Professional services 86,321 89,672 81,177
Occupancy and equipment 74,346 68,840 70,915
Communications 73,054 67,335 73,342
Depreciation and amortization 90,616 89,583 87,931
Amortization of other intangibles 25,183 26,151 28,475
Facility restructuring and other exit activities 7,689 7,706 14,346
Other operating expenses 66,825 154,305 103,976
Total operating expense 1,162,085 1,234,904 1,142,577
Income before other income (expense) and income tax expense (benefit) 382,774 361,081 155,886
Other income (expense):
Corporate interest income 90 702 6,188
Corporate interest expense (179,877) (177,829) (167,130)
Gains on sales of investments, net 18 44 2,655
Gains (losses) on early extinguishment of debt (335,261) 3,091 —
Equity in income (loss) of investments and venture funds 1,292 (1,759) (740)
Total other income (expense) (513,738) (175,751) (159,027)
Income (loss) before income tax expense (benefit) (130,964) 185,330 (3,141)
Income tax expense (benefit) (18,381) 28,629 25,331
Net income (loss) $ (112,583) $ 156,701 $ (28,472)
Basic earnings (loss) per share $ (0.39) $ 0.59 $ (0.13)
Diluted earnings (loss) per share $ (0.39) $ 0.54 $ (0.13)
Shares used in computation of per share data:
Basic 285,748 267,291 211,302
Diluted 285,748 289,822 211,302
See accompanying notes to consolidated financial statements
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