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

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

Daily Average Revenue Trades (“DARTs”) for November were 163,411, a two percent increase from October and a 26 percent increase from the year-ago period. The Company added 29,355 gross new brokerage accounts in November, ending the month with approximately 3.0 million brokerage accounts – an increase of 11,907 from October.

Net new brokerage assets were $1.3 billion in the month. During the month, customer security holdings increased by three percent, or $5.2 billion, and brokerage-related cash increased by $0.7 billion to $39.3 billion. Bank-related cash and deposits ended the month unchanged, at $6.4 billion. Customers were net buyers of approximately $0.3 billion in securities during the month.

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 one percent from September 30, 2013 to November 30, 2013 and decreased seven percent from October 31, 2013 to November 30, 2013, while total “at risk” delinquencies (30 to 179 days delinquent) decreased one percent from September 30, 2013 to November 30, 2013 and decreased five percent from October 31, 2013 to November 30, 2013. Additional loan delinquency data is provided in the second table of this release.

Monthly Activity Data
                   
 
Nov-13 Oct-13 Nov-12 % Chg. M/M % Chg. Y/Y
 
 
Trading days 19.5 23.0 20.5 N.M. N.M.
 
DARTs 163,411 159,703 130,202 2.3 % 25.5 %
 
Gross new brokerage accounts 29,355 30,276 26,312 (3.0 )% 11.6 %
Gross new stock plan accounts 27,740 19,324 27,360 43.6 % 1.4 %
Gross new banking accounts   773     735     782   5.2 % (1.2 )%
Total gross new accounts 57,868 50,335 54,454 15.0 % 6.3 %
 
Net new brokerage accounts 11,907 3,193 7,361 N.M. N.M.
Net new stock plan accounts 11,388 (2,836 ) 16,423 N.M. N.M.
Net new banking accounts   (3,031 )   (3,274 )   (2,315 ) N.M. N.M.
Net new accounts 20,264 (2,917 ) 21,469 N.M. N.M.
 
End of period brokerage accounts 2,990,942 2,979,035 2,895,060 0.4 % 3.3 %
End of period stock plan accounts 1,213,244 1,201,856 1,137,514 0.9 % 6.7 %
End of period banking accounts   400,115     403,146     431,961   (0.8 )% (7.4 )%
End of period total accounts 4,604,301 4,584,037 4,464,535 0.4 % 3.1 %
 

Customer Assets ($B)
Security holdings $ 174.4 $ 169.2 $ 139.9 3.1 % 24.7 %
Customer payables (cash) 6.3 6.1 5.6 3.3 % 12.5 %
Customer assets held by third parties(1) 13.5 13.1 6.0 3.1 % 125.0 %
Unexercised stock plan customer options (vested)   34.4     33.6     22.1   2.4 % 55.7 %
Customer assets in brokerage and stock plan accounts   228.6     222.0     173.6   3.0 % 31.7 %
Sweep deposits 19.5 19.4 20.3 0.5 % (3.9 )%
Savings, transaction and other   6.4     6.4     7.1   0.0 % (9.9 )%
Customer assets in banking accounts   25.9     25.8     27.4   0.4 % (5.5 )%
Total customer assets $ 254.5 $ 247.8 $ 201.0 2.7 % 26.6 %
 
Net new brokerage assets ($B)(2) $ 1.3 $ 1.0 $ 0.8 N.M. N.M.
Net new banking assets ($B)(2)   0.0     (0.1 )   (0.0 ) N.M. N.M.
Net new customer assets ($B)(2) $ 1.3 $ 0.9 $ 0.8 N.M. N.M.
 
Brokerage related cash ($B) $ 39.3 $ 38.6 $ 31.9 1.8 % 23.2 %
Other customer cash and deposits ($B)   6.4     6.4     7.1   0.0 % (9.9 )%
Total customer cash and deposits ($B) $ 45.7 $ 45.0 $ 39.0 1.6 % 17.2 %
 
Customer net purchase activity ($B) $ (0.3 ) $ (0.7 ) $ (0.3 ) N.M. N.M.

(1) Customer assets 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-13 Oct-13 Sep-13

% Chg.Nov 13 -Oct 13

% Chg.Oct 13 -Sep 13

% Chg.Nov 13 -Sep 13

One- to Four-Family ($MM)
 
Current $ 4,077 $ 4,127 $ 4,226 (1 )% (2 )% (4 )%
30-89 days delinquent 199 217 197 (8 )% 10 % 1 %
90-179 days delinquent   71   74   71 (4 )% 4 % 0 %
Total 30-179 days delinquent 270 291 268 (7 )% 9 % 1 %
180+ days delinquent   226   237   239 (5 )% (1 )% (5 )%
Total delinquent loans(1)   496   528   507 (6 )% 4 % (2 )%
Gross loans receivable(2) $ 4,573 $ 4,655 $ 4,733 (2 )% (2 )% (3 )%
 

Home Equity ($MM)
 
Current $ 3,387 $ 3,441 $ 3,498 (2 )% (2 )% (3 )%
30-89 days delinquent 64 66 69 (3 )% (4 )% (7 )%
90-179 days delinquent   40   38   38 5 % 0 % 5 %
Total 30-179 days delinquent 104 104 107 0 % (3 )% (3 )%
180+ days delinquent   38   38   38 0 % 0 % 0 %
Total delinquent loans(1)   142   142   145 0 % (2 )% (2 )%
Gross loans receivable(2) $ 3,529 $ 3,583 $ 3,643 (2 )% (2 )% (3 )%
 

Consumer and Other ($MM)
 
Current $ 607 $ 619 $ 633 (2 )% (2 )% (4 )%
30-89 days delinquent 13 13 12 0 % 8 % 8 %
90-179 days delinquent   1   2   3 (50 )% (33 )% (67 )%
Total 30-179 days delinquent 14 15 15 (7 )% 0 % (7 )%
180+ days delinquent   -   -   - N.M. N.M. N.M.
Total delinquent loans   14   15   15 (7 )% 0 % (7 )%
Gross loans receivable(2) $ 621 $ 634 $ 648 (2 )% (2 )% (4 )%
 

Total Loans Receivable ($MM)
 
Current $ 8,071 $ 8,187 $ 8,357 (1 )% (2 )% (3 )%
30-89 days delinquent 276 296 278 (7 )% 6 % (1 )%
90-179 days delinquent   112   114   112 (2 )% 2 % 0 %
Total 30-179 days delinquent 388 410 390 (5 )% 5 % (1 )%
180+ days delinquent   264   275   277 (4 )% (1 )% (5 )%
Total delinquent loans(1)   652   685   667 (5 )% 3 % (2 )%
Total gross loans receivable(2) $ 8,723 $ 8,872 $ 9,024 (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 corporate website at https://about.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.

Copyright Business Wire 2010

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