ETFC E TRADE Financial Corporation

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.

(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

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