eTrade 2012 Annual Report Download - page 61

The deposits balance is a component of the total customer cash and deposits balance reported as a customer
activity metric of $41.0 billion and $35.5 billion at December 31, 2012 and 2011, respectively. The total
customer cash and deposits balance is summarized as follows (dollars in millions):
Variance
December 31, 2012 vs. 2011
2012 2011 Amount %
Deposits $28,392.5 $26,460.0 $1,932.5 7%
Less: brokered certificates of deposit (11.2) (33.2) 22.0 (66)%
Retail deposits 28,381.3 26,426.8 1,954.5 7%
Customer payables 4,964.9 5,590.9 (626.0) (11)%
Customer cash balances held by third parties and other 7,644.2 3,520.1 4,124.1 117%
Total customer cash and deposits $40,990.4 $35,537.8 $5,452.6 15%
The decrease in customer payables during the year ended December 31 2012 was primarily due to
deleveraging initiatives as $0.9 billion was transferred off of the balance sheet to third parties during the fourth
quarter of 2012. The increase in customer cash balances held by third parties and other was also related to
deleveraging initiatives and consisted of sweep deposits and customer payables that were transferred off of the
balance sheet during the year ended December 31, 2012 in addition to customer cash that is being directed to
third party money funds upon new account opening.
Wholesale Borrowings
Wholesale borrowings, which consist of securities sold under agreements to repurchase and FHLB advances
and other borrowings, are summarized as follows (dollars in millions):
Variance
December 31, 2012 vs. 2011
2012 2011 Amount %
Securities sold under agreements to repurchase $4,454.7 $5,015.5 $ (560.8) (11)%
FHLB advances $ 831.7 $2,302.7 $(1,471.0) (64)%
Subordinated debentures 427.7 427.6 0.1 0%
Other 1.5 6.6 (5.1) (77)%
Total FHLB advances and other borrowings $1,260.9 $2,736.9 $(1,476.0) (54)%
Total wholesale borrowings $5,715.6 $7,752.4 $(2,036.8) (26)%
Wholesale borrowings represented 13% and 18% of total liabilities at December 31, 2012 and 2011,
respectively. Securities sold under agreements to repurchase and FHLB advances are the primary wholesale
funding sources of the Bank. The decline in wholesale borrowings of $2.0 billion during the year ended
December 31, 2012 was driven by decreases of $1.5 billion in FHLB advances and $560.8 million in securities
sold under agreements to repurchase. These decreases included $1.5 billion as part of our deleveraging
initiatives, $1.1 billion of which were early terminations of the wholesale borrowings that resulted in
approximately $78 million of losses on early extinguishment of debt during the year ended December 31, 2012.
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