E*TRADE Financial Corporation Reports Monthly Activity For February 2012; Provides Updates To Its Loan Delinquencies

E*TRADE Financial Corporation (NASDAQ: ETFC) today released its Monthly Activity Report for February 2012.

Daily Average Revenue Trades (“DARTs”) for February were 168,973, a 16 percent increase from January and a nine percent decrease from the year-ago period. The company added 39,023 gross new brokerage accounts in February, ending the month with approximately 2.8 million brokerage accounts – an increase of 18,120 from January. Total accounts ended the month at approximately 4.4 million.

Net new brokerage assets were positive $1.9 billion in the month. During the month, customer security holdings increased by six percent, or $7.2 billion, and brokerage-related cash increased by $1.6 billion to $30.6 billion, while customers were net sellers of approximately $30 million in securities. Bank-related cash and deposits increased by $0.1 billion, ending the month at $7.9 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) decreased 12% from December 31, 2011 to February 29, 2012 and decreased nine percent from January 31, 2012 to February 29, 2012, while total “at risk” delinquencies (30 to 179 days delinquent) decreased eight percent from December 31, 2011 to February 29, 2012 and decreased six percent from January 31, 2012 to February 29, 2012. Additional loan delinquency data is provided in the second table of this release.

Monthly Activity Data
			Feb-12					Jan-12					Feb-11					% Chg. M/M				% Chg. Y/Y
Trading days				20.0					20.0					19.0				N.M.				N.M.
DARTs				168,973					145,390					185,717				16.2 %				(9.0)%
Gross new brokerage accounts				39,023					30,298					37,109				28.8 %				5.2 %
Gross new stock plan accounts				19,406					29,569					12,121				(34.4)%				60.1 %
Gross new banking accounts				1,695					1,525					1,846				11.1 %				(8.2)%
Total gross new accounts				60,124					61,392					51,076				(2.1)%				17.7 %
Net new brokerage accounts				18,120					10,041					18,343				N.M.				N.M.
Net new stock plan accounts				7,608					18,234					176				N.M.				N.M.
Net new banking accounts				(3,184	)				(2,478	)				(4,927	)			N.M.				N.M.
Net new accounts				22,544					25,797					13,592				N.M.				N.M.
End of period brokerage accounts				2,811,173					2,793,053					2,715,158				0.6 %				3.5 %
End of period stock plan accounts				1,096,256					1,088,648					1,064,901				0.7 %				2.9 %
End of period banking accounts				457,906					461,090					503,795				(0.7)%				(9.1)%
End of period total accounts				4,365,335					4,342,791					4,283,854				0.5 %				1.9 %
Customer Assets ($B)
Security holdings			$	133.7				$	126.5				$	129.7				5.7 %				3.1 %
Customer payables (cash)				5.7					6.1					5.3				(6.6)%				7.5 %
Customer cash balances held by third parties				3.7					3.6					3.5				2.8 %				5.7 %
Unexercised stock plan customer options (vested)				23.3					22.1					24.8				5.4 %				(6.0)%
Customer assets in brokerage and stock plan accounts				166.4					158.3					163.3				5.1 %				1.9 %
Sweep deposits				21.2					19.3					17.1				9.8 %				24.0 %
Savings, transaction and other				7.9					7.8					8.9				1.3 %				(11.2)%
Customer assets in banking accounts				29.1					27.1					26.0				7.4 %				11.9 %
Total customer assets			$	195.5				$	185.4				$	189.3				5.4 %				3.3 %
Net new brokerage assets ($B) (1)			$	1.9				$	0.7				$	1.4				N.M.				N.M.
Net new banking assets ($B) (1)				0.1					(0.1	)				0.1				N.M.				N.M.
Net new customer assets ($B) (1)			$	2.0				$	0.6				$	1.5				N.M.				N.M.
Brokerage related cash ($B)			$	30.6				$	29.0				$	25.9				5.5 %				18.1 %
Other customer cash and deposits ($B)				7.9					7.8					8.9				1.3 %				(11.2)%
Total customer cash and deposits ($B)			$	38.5				$	36.8				$	34.8				4.6 %				10.6 %
Customer net (purchase) / sell activity ($B)			$	0.0				$	0.9				$	(0.8	)			N.M.				N.M.

(1) 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
			Feb-12				Jan-12				Dec-11				% Chg. Feb 12 - Jan 12			% Chg. Jan 12 - Dec 11			% Chg. Feb 12 - Dec 11
One- to Four-Family ($MM)
Current			$	5,606			$	5,656			$	5,756			(1)%			(2)%			(3)%
30-89 days delinquent				260				293				295			(11)%			(1)%			(12)%
90-179 days delinquent				129				134				136			(4)%			(1)%			(5)%
Total 30-179 days delinquent				389				427				431			(9)%			(1)%			(10)%
180+ days delinquent				427				447				458			(4)%			(2)%			(7)%
Total delinquent loans (1)				816				874				889			(7)%			(2)%			(8)%
Gross loans receivable (2)			$	6,422			$	6,530			$	6,645			(2)%			(2)%			(3)%
Home Equity ($MM)
Current			$	4,908			$	4,988			$	5,073			(2)%			(2)%			(3)%
30-89 days delinquent				132				143				154			(8)%			(7)%			(14)%
90-179 days delinquent				107				100				100			7 %			0 %			7 %
Total 30-179 days delinquent				239				243				254			(2)%			(4)%			(6)%
180+ days delinquent				51				55				58			(7)%			(5)%			(12)%
Total delinquent loans (1)				290				298				312			(3)%			(4)%			(7)%
Gross loans receivable (2)			$	5,198			$	5,286			$	5,385			(2)%			(2)%			(3)%
Consumer and Other ($MM)
Current			$	1,043			$	1,082			$	1,104			(4)%			(2)%			(6)%
30-89 days delinquent				20				19				18			5 %			6 %			11 %
90-179 days delinquent				4				4				4			0 %			0 %			0 %
Total 30-179 days delinquent				24				23				22			4 %			5 %			9 %
180+ days delinquent				-				-				-			N.M.			N.M.			N.M.
Total delinquent loans				24				23				22			4 %			5 %			9 %
Gross loans receivable (2)			$	1,067			$	1,105			$	1,126			(3)%			(2)%			(5)%
Total Loans Receivable ($MM)
Current			$	11,557			$	11,726			$	11,933			(1)%			(2)%			(3)%
30-89 days delinquent				412				455				467			(9)%			(3)%			(12)%
90-179 days delinquent				240				238				240			1 %			(1)%			0 %
Total 30-179 days delinquent				652				693				707			(6)%			(2)%			(8)%
180+ days delinquent				478				502				516			(5)%			(3)%			(7)%
Total delinquent loans				1,130				1,195				1,223			(5)%			(2)%			(8)%
Gross loans receivable (2)			$	12,687			$	12,921			$	13,156			(2)%			(2)%			(4)%

(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.

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