E*TRADE Financial Corporation Reports Monthly Activity For February 2013; Provides Updates To Its Loan Delinquencies

E*TRADE Financial Corporation (NASDAQ: ETFC) today released its Monthly Activity Report for February 2013.

Daily Average Revenue Trades (“DARTs”) for February were 152,154, a one percent decrease from January and a 10 percent decrease from the year-ago period. The Company added 31,123 gross new brokerage accounts in February, ending the month with approximately 2.9 million brokerage accounts – an increase of 9,941 from January. Total accounts ended the month at approximately 4.5 million.

Net new brokerage assets were positive $0.9 billion in the month. During the month, customer security holdings increased by one percent, or $1.1 billion, and brokerage-related cash ended the month unchanged, at $34.2 billion, while customers were net buyers of approximately $0.9 billion in securities. Bank-related cash and deposits ended the month unchanged, at $6.9 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 nine percent from December 31, 2012 to February 28, 2013 and decreased two percent from January 31, 2013 to February 28, 2013, while total “at risk” delinquencies (30 to 179 days delinquent) decreased eight percent from December 31, 2012 to February 28, 2013 and decreased four percent from January 31, 2013 to February 28, 2013. Additional loan delinquency data is provided in the second table of this release.

Monthly Activity Data
    Feb-13     Jan-13     Feb-12     % Chg. M/M     % Chg. Y/Y
 
 
Trading days 19.0 21.0 20.0 N.M. N.M.
 
DARTs 152,154 153,580 168,973 (0.9 )% (10.0 )%
 
Gross new brokerage accounts 31,123 31,286 39,023 (0.5 )% (20.2 )%
Gross new stock plan accounts 21,256 21,310 19,406 (0.3 )% 9.5 %
Gross new banking accounts   933     980     1,695   (4.8 )% (45.0 )%
Total gross new accounts 53,312 53,576 60,124 (0.5 )% (11.3 )%
 
Net new brokerage accounts 9,941 9,127 18,120 N.M. N.M.
Net new stock plan accounts 8,258 9,114 7,608 N.M. N.M.
Net new banking accounts   (2,122 )   (2,841 )   (3,184 ) N.M. N.M.
Net new accounts 16,077 15,400 22,544 N.M. N.M.
 
End of period brokerage accounts 2,922,259 2,912,318 2,811,173 0.3 % 4.0 %
End of period stock plan accounts 1,164,966 1,156,708 1,096,256 0.7 % 6.3 %
End of period banking accounts   424,309     426,431     457,906   (0.5 )% (7.3 )%
End of period total accounts 4,511,534 4,495,457 4,365,335 0.4 % 3.3 %
 

Customer Assets ($B)
Security holdings $ 144.9 $ 143.8 $ 133.7 0.8 % 8.4 %
Customer payables (cash) 4.9 5.1 5.7 (3.9 )% (14.0 )%
Customer cash balances held by third parties(1) 9.5 9.3 3.7 2.2 % 156.8 %
Unexercised stock plan customer options (vested)   25.5     25.2     23.3   1.2 % 9.4 %
Customer assets in brokerage and stock plan accounts   184.8     183.4     166.4   0.8 % 11.1 %
Sweep deposits 19.8 19.8 21.2 0.0 % (6.6 )%
Savings, transaction and other   6.9     6.9     7.9   0.0 % (12.7 )%
Customer assets in banking accounts   26.7     26.7     29.1   0.0 % (8.2 )%
Total customer assets $ 211.5 $ 210.1 $ 195.5 0.7 % 8.2 %
 
Net new brokerage assets ($B)(2) $ 0.9 $ 1.0 $ 1.9 N.M. N.M.
Net new banking assets ($B)(2)   (0.0 )   (0.2 )   0.1   N.M. N.M.
Net new customer assets ($B)(2) $ 0.9 $ 0.8 $ 2.0 N.M. N.M.
 
Brokerage related cash ($B) $ 34.2 $ 34.2 $ 30.6 0.0 % 11.8 %
Other customer cash and deposits ($B)   6.9     6.9     7.9   0.0 % (12.7 )%
Total customer cash and deposits ($B) $ 41.1 $ 41.1 $ 38.5 0.0 % 6.8 %
 
Customer net (purchase) / sell activity ($B) $ (0.9 ) $ (0.3 ) $ 0.0 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
    Feb-13     Jan-13     Dec-12    

% Chg. Feb 13 - Jan 13
   

% Chg. Jan 13 - Dec 12
   

% Chg. Feb 13 - Dec 12

One- to Four-Family ($MM)
 
Current $ 4,734 $ 4,799 $ 4,858 (1 )% (1 )% (3 )%
30-89 days delinquent 211 216 233 (2 )% (7 )% (9 )%
90-179 days delinquent   93   100   95 (7 )% 5 % (2 )%
Total 30-179 days delinquent 304 316 328 (4 )% (4 )% (7 )%
180+ days delinquent   272   274   279 (1 )% (2 )% (3 )%
Total delinquent loans(1)   576   590   607 (2 )% (3 )% (5 )%
Gross loans receivable(2) $ 5,310 $ 5,389 $ 5,465 (1 )% (1 )% (3 )%
 

Home Equity ($MM)
 
Current $ 3,947 $ 4,004 $ 4,065 (1 )% (2 )% (3 )%
30-89 days delinquent 84 85 90 (1 )% (6 )% (7 )%
90-179 days delinquent   57   60   64 (5 )% (6 )% (11 )%
Total 30-179 days delinquent 141 145 154 (3 )% (6 )% (8 )%
180+ days delinquent   42   41   41 2 % 0 % 2 %
Total delinquent loans(1)   183   186   195 (2 )% (5 )% (6 )%
Gross loans receivable(2) $ 4,130 $ 4,190 $ 4,260 (1 )% (2 )% (3 )%
 

Consumer and Other ($MM)
 
Current $ 791 $ 812 $ 829 (3 )% (2 )% (5 )%
30-89 days delinquent 17 17 19 0 % (11 )% (11 )%
90-179 days delinquent   4   5   6 (20 )% (17 )% (33 )%
Total 30-179 days delinquent 21 22 25 (5 )% (12 )% (16 )%
180+ days delinquent   -   -   - N.M. N.M. N.M.
Total delinquent loans   21   22   25 (5 )% (12 )% (16 )%
Gross loans receivable(2) $ 812 $ 834 $ 854 (3 )% (2 )% (5 )%
 

Total Loans Receivable ($MM)
 
Current $ 9,472 $ 9,615 $ 9,752 (1 )% (1 )% (3 )%
30-89 days delinquent 312 318 342 (2 )% (7 )% (9 )%
90-179 days delinquent   154   165   165 (7 )% 0 % (7 )%
Total 30-179 days delinquent 466 483 507 (4 )% (5 )% (8 )%
180+ days delinquent   314   315   320 (0 )% (2 )% (2 )%
Total delinquent loans(1)   780   798   827 (2 )% (4 )% (6 )%
Total gross loans receivable(2) $ 10,252 $ 10,413 $ 10,579 (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© 2013 E*TRADE Financial Corporation. All rights reserved.

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