E*TRADE Financial Corporation Reports Monthly Activity for November 2012; Provides Updates to Its Loan Delinquencies

NEW YORK--()--E*TRADE Financial Corporation (NASDAQ: ETFC) today released its Monthly Activity Report for November 2012.

Daily Average Revenue Trades (“DARTs”) for November were 130,202, a five percent increase from October and an eight percent decrease from the year-ago period. The Company added 26,312 gross new brokerage accounts in November, ending the month with approximately 2.9 million brokerage accounts – an increase of 7,361 from October. Total accounts ended the month at approximately 4.5 million.

Net new brokerage assets were positive $0.8 billion in the month. During the month, customer security holdings increased by one percent, or $1.3 billion, and brokerage-related cash increased by $0.2 billion to $31.9 billion, while customers were net buyers of approximately $0.3 billion in securities. Bank-related cash and deposits ended the month unchanged, at $7.1 billion.

The Company also updated delinquency statistics in its loan portfolio. For the Company’s entire loan portfolio; total special mention delinquencies (30 to 89 days delinquent) increased three percent from September 30, 2012 to November 30, 2012 and decreased two percent from October 31, 2012 to November 30, 2012, while total “at risk” delinquencies (30 to 179 days delinquent) increased two percent from September 30, 2012 to November 30, 2012 and decreased two percent from October 31, 2012 to November 30, 2012. Additional loan delinquency data is provided in the second table of this release.

                       

Monthly Activity Data

Nov-12 Oct-12 Nov-11 % Chg. M/M % Chg. Y/Y
 
 
Trading days 20.5 21.0 20.5 N.M. N.M.
 
DARTs 130,202 124,246 141,361 4.8 % (7.9)%
 
Gross new brokerage accounts 26,312 23,365 24,541 12.6 % 7.2 %
Gross new stock plan accounts 27,360 14,164 11,383 93.2 % 140.4 %
Gross new banking accounts   782   857   1,391 (8.8)% (43.8)%
Total gross new accounts 54,454 38,386 37,315 41.9 % 45.9 %
 
Net new brokerage accounts 7,361 (5,153) 207 N.M. N.M.
Net new stock plan accounts 16,423 2,251 (781) N.M. N.M.
Net new banking accounts   (2,315)   (3,608)   (3,541) N.M. N.M.
Net new accounts 21,469 (6,510) (4,115) N.M. N.M.
 
End of period brokerage accounts 2,895,060 2,887,699 2,772,187 0.3 % 4.4 %
End of period stock plan accounts 1,137,514 1,121,091 1,062,904 1.5 % 7.0 %
End of period banking accounts   431,961   434,276   466,024 (0.5)% (7.3)%
End of period total accounts 4,464,535 4,443,066 4,301,115 0.5 % 3.8 %
 

Customer Assets ($B)

Security holdings $ 139.9 $ 138.6 $ 120.1 0.9 % 16.5 %
Customer payables (cash) 5.6 5.5 5.1 1.8 % 9.8 %
Customer cash balances held by third parties(1) 6.0 5.9 3.3 1.7 % 81.8 %
Unexercised stock plan customer options (vested)   22.1   21.3   19.1 3.8 % 15.7 %
Customer assets in brokerage and stock plan accounts   173.6   171.3   147.6 1.3 % 17.6 %
Sweep deposits 20.3 20.3 17.9 0.0 % 13.4 %
Savings, transaction and other   7.1   7.1   7.8 0.0 % (9.0)%
Customer assets in banking accounts   27.4   27.4   25.7 0.0 % 6.6 %
Total customer assets $ 201.0 $ 198.7 $ 173.3 1.2 % 16.0 %
 
Net new brokerage assets ($B)(2) $ 0.8 $ 0.3 $ 0.6 N.M. N.M.
Net new banking assets ($B)(2)   (0.0)   (0.1)   (0.1) N.M. N.M.
Net new customer assets ($B)(2) $ 0.8 $ 0.2 $ 0.5 N.M. N.M.
 
Brokerage related cash ($B) $ 31.9 $ 31.7 $ 26.3 0.6 % 21.3 %
Other customer cash and deposits ($B)   7.1   7.1   7.8 0.0 % (9.0)%
Total customer cash and deposits ($B) $ 39.0 $ 38.8 $ 34.1 0.5 % 14.4 %
 
Customer net (purchase) / sell activity ($B) $ (0.3) $ (1.3) $ (1.6) N.M. N.M.

(1) Customer cash balances held by third parties are held outside E*TRADE Financial and include money market funds and sweep deposit accounts at unaffiliated financial institutions.

(2) Net new customer assets are total inflows to all new and existing customer accounts less total outflows from all closed and existing customer accounts. The net new banking assets and net new brokerage assets metrics treat asset flows between E*TRADE entities in the same manner as unrelated third party accounts.

                           

Loan Delinquency Data

Nov-12 Oct-12 Sep-12

% Chg.
Nov 12 -
Oct 12

% Chg.
Oct 12 -
Sep 12

% Chg.
Nov 12 -
Sep 12

One- to Four-Family ($MM)

 
Current $ 4,943 $ 5,005 $ 5,122 (1)% (2)% (3)%
30-89 days delinquent 222 231 210 (4)% 10 % 6 %
90-179 days delinquent   110   115   108 (4)% 6 % 2 %
Total 30-179 days delinquent 332 346 318 (4)% 9 % 4 %
180+ days delinquent   287   294   300 (2)% (2)% (4)%
Total delinquent loans(1)   619   640   618 (3)% 4 % 0 %
Gross loans receivable(2) $ 5,562 $ 5,645 $ 5,740 (1)% (2)% (3)%
 

Home Equity ($MM)

 
Current $ 4,135 $ 4,206 $ 4,277 (2)% (2)% (3)%
30-89 days delinquent 94 93 99 1 % (6)% (5)%
90-179 days delinquent   62   65   65 (5)% 0 % (5)%
Total 30-179 days delinquent 156 158 164 (1)% (4)% (5)%
180+ days delinquent   43   44   42 (2)% 5 % 2 %
Total delinquent loans(1)   199   202   206 (1)% (2)% (3)%
Gross loans receivable(2) $ 4,334 $ 4,408 $ 4,483 (2)% (2)% (3)%
 

Consumer and Other ($MM)

 
Current $ 847 $ 869 $ 892 (3)% (3)% (5)%
30-89 days delinquent 22 20 18 10 % 11 % 22 %
90-179 days delinquent   4   3   3 33 % 0 % 33 %
Total 30-179 days delinquent 26 23 21 13 % 10 % 24 %
180+ days delinquent   -   -   - N.M. N.M. N.M.
Total delinquent loans   26   23   21 13 % 10 % 24 %
Gross loans receivable(2) $ 873 $ 892 $ 913 (2)% (2)% (4)%
 

Total Loans Receivable ($MM)

 
Current $ 9,925 $ 10,080 $ 10,291 (2)% (2)% (4)%
30-89 days delinquent 338 344 327 (2)% 5 % 3 %
90-179 days delinquent   176   183   176 (4)% 4 % 0 %
Total 30-179 days delinquent 514 527 503 (2)% 5 % 2 %
180+ days delinquent   330   338   342 (2)% (1)% (4)%
Total delinquent loans(1)   844   865   845 (2)% 2 % (0)%
Total gross loans receivable(2) $ 10,769 $ 10,945 $ 11,136 (2)% (2)% (3)%

(1) Delinquent loans include charge-offs for loans that are in bankruptcy or are 180 days past due which have been written down to their expected recovery value.

(2) Includes unpaid principal balances and premiums (discounts).

Historical metrics and financials can be found on E*TRADE Financial’s investor relations website at https://investor.etrade.com.

About E*TRADE Financial

The E*TRADE Financial family of companies provides financial services including online brokerage and related banking products and services to retail investors. Specific business segments include Trading and Investing and Balance Sheet Management. Securities products and services are offered by E*TRADE Securities LLC (Member FINRA/SIPC). Bank products and services are offered by E*TRADE Bank, a Federal savings bank, Member FDIC, or its subsidiaries. More information is available at www.etrade.com.

Important Notices

E*TRADE Financial, E*TRADE and the E*TRADE logo are trademarks or registered trademarks of E*TRADE Financial Corporation. ETFC-G

© 2012 E*TRADE Financial Corporation. All rights reserved.

Contacts

E*TRADE Financial Media Relations Contact
Robert Horton, 646-521-4418
mediainq@etrade.com
or
E*TRADE Financial Investor Relations Contact
Brett Goodman, 646-521-4406
brett.goodman@etrade.com

Sharing

Contacts

E*TRADE Financial Media Relations Contact
Robert Horton, 646-521-4418
mediainq@etrade.com
or
E*TRADE Financial Investor Relations Contact
Brett Goodman, 646-521-4406
brett.goodman@etrade.com