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

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

Daily Average Revenue Trades (“DARTs”) for August were 121,570, a five percent decrease from July and a 37 percent decrease from the year-ago period. The Company added 33,303 gross new brokerage accounts in August, ending the month with approximately 2.9 million brokerage accounts – an increase of 18,034 from July. Total accounts ended the month at approximately 4.4 million.

Net new brokerage assets were positive $1.1 billion in the month. During the month, customer security holdings increased by three percent, or $4.0 billion, and brokerage-related cash increased by $1.8 billion to $31.4 billion, as customers were net sellers of approximately $1.2 billion in securities. Bank-related cash and deposits ended the month unchanged, at $7.3 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 three percent from June 30, 2012 to August 31, 2012 and decreased six percent from July 31, 2012 to August 31, 2012, while total “at risk” delinquencies (30 to 179 days delinquent) decreased four percent from June 30, 2012 to August 31, 2012 and decreased six percent from July 31, 2012 to August 31, 2012. Additional loan delinquency data is provided in the second table of this release.

 

Monthly Activity Data

         
Aug-12 Jul-12 Aug-11 % Chg. M/M % Chg. Y/Y
 
 
Trading days 23.0 20.5 23.0 N.M. N.M.
 
DARTs 121,570 128,594 193,546 (5.5)% (37.2)%
 
Gross new brokerage accounts 33,303 22,432 36,105

48.5 %

(7.8)%
Gross new stock plan accounts 26,649 18,060 15,455

47.6 %

72.4 %

Gross new banking accounts   1,365     1,222     1,780  

11.7 %

(23.3)%
Total gross new accounts 61,317 41,714 53,340

47.0 %

15.0 %

 
Net new brokerage accounts 18,034 (4,363 ) 10,148 N.M. N.M.
Net new stock plan accounts 9,478 5,308 4,123 N.M. N.M.
Net new banking accounts   (2,507 )   (3,345 )   (6,002 ) N.M. N.M.
Net new accounts 25,005 (2,400 ) 8,269 N.M. N.M.
 
End of period brokerage accounts 2,888,276 2,870,242 2,770,837

0.6 %

4.2 %

End of period stock plan accounts 1,119,088 1,109,610 1,065,941

0.9 %

5.0 %

End of period banking accounts   440,296     442,803     475,629   (0.6)% (7.4)%
End of period total accounts 4,447,660 4,422,655 4,312,407

0.6 %

3.1 %

 

Customer Assets ($B)

Security holdings $ 139.3 $ 135.3 $ 119.9

3.0 %

16.2 %

Customer payables (cash) 5.8 5.3 5.3

9.4 %

9.4 %

Customer cash balances held by third parties 3.9 3.7 3.3

5.4 %

18.2 %

Unexercised stock plan customer options (vested)   22.3     21.4     18.9  

4.2 %

18.0 %

Customer assets in brokerage and stock plan accounts   171.3     165.7     147.4  

3.4 %

16.2 %

Sweep deposits 21.7 20.6 17.4

5.3 %

24.7 %

Savings, transaction and other   7.3     7.3     8.0  

0.0 %

(8.8)%
Customer assets in banking accounts   29.0     27.9     25.4  

3.9 %

14.2 %

Total customer assets $ 200.3 $ 193.6 $ 172.8

3.5 %

15.9 %

 
Net new brokerage assets ($B) (1) $ 1.1 $ 0.3 $ 1.6 N.M. N.M.
Net new banking assets ($B) (1)   0.0     (0.1 )   (0.4 ) N.M. N.M.
Net new customer assets ($B) (1) $ 1.1 $ 0.2 $ 1.2 N.M. N.M.
 
Brokerage related cash ($B) $ 31.4 $ 29.6 $ 26.0

6.1 %

20.8 %

Other customer cash and deposits ($B)   7.3     7.3     8.0  

0.0 %

(8.8)%
Total customer cash and deposits ($B) $ 38.7 $ 36.9 $ 34.0

4.9 %

13.8 %

 
Customer net (purchase) / sell activity ($B) $ 1.2 $ 0.2 $ (2.6 ) 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

           
Aug-12 Jul-12 Jun-12

% Chg. Aug 12 - Jul 12

% Chg. Jul 12 - Jun 12

% Chg. Aug 12 - Jun 12

One- to Four-Family ($MM)

 
Current $ 5,196 $ 5,249 $ 5,329 (1)% (2)% (2)%
30-89 days delinquent 222 237 227 (6)%

4 %

(2)%
90-179 days delinquent   108   116   119 (7)% (3)% (9)%
Total 30-179 days delinquent 330 353 346 (7)%

2 %

(5)%
180+ days delinquent   315   326   338 (3)% (4)% (7)%
Total delinquent loans (1)   645   679   684 (5)% (1)% (6)%
Gross loans receivable (2) $ 5,841 $ 5,928 $ 6,013 (1)% (1)% (3)%
 

Home Equity ($MM)

 
Current $ 4,388 $ 4,464 $ 4,543 (2)% (2)% (3)%
30-89 days delinquent 100 105 104 (5)%

1 %

(4)%
90-179 days delinquent   69   70   71 (1)% (1)% (3)%
Total 30-179 days delinquent 169 175 175 (3)%

0 %

(3)%
180+ days delinquent   42   41   43

2 %

(5)% (2)%
Total delinquent loans (1)   211   216   218 (2)% (1)% (3)%
Gross loans receivable (2) $ 4,599 $ 4,680 $ 4,761 (2)% (2)% (3)%
 

Consumer and Other ($MM)

 
Current $ 917 $ 934 $ 957 (2)% (2)% (4)%
30-89 days delinquent 17 20 18 (15)%

11 %

(6)%
90-179 days delinquent   4   4   3

0 %

33 %

33 %

Total 30-179 days delinquent 21 24 21 (13)%

14 %

0 %

180+ days delinquent   -   -   - N.M. N.M. N.M.
Total delinquent loans   21   24   21 (13)%

14 %

0 %

Gross loans receivable (2) $ 938 $ 958 $ 978 (2)% (2)% (4)%
 

Total Loans Receivable ($MM)

 
Current $ 10,501 $ 10,647 $ 10,829 (1)% (2)% (3)%
30-89 days delinquent 339 362 349 (6)%

4 %

(3)%
90-179 days delinquent   181   190   193 (5)% (2)% (6)%
Total 30-179 days delinquent 520 552 542 (6)%

2 %

(4)%
180+ days delinquent   357   367   381 (3)% (4)% (6)%
Total delinquent loans (1)   877   919   923 (5)% (0)% (5)%
Total gross loans receivable (2) $ 11,378 $ 11,566 $ 11,752 (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).

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