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

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

Business Wire

NEW YORK -- March 13, 2013

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.    % Chg.
                                                                      M/M         Y/Y
                                                                                  
                                                                                  
Trading           19.0              21.0              20.0            N.M.        N.M.
days
                                                                                  
DARTs             152,154           153,580           168,973         (0.9 )%     (10.0 )%
                                                                                  
Gross new
brokerage         31,123            31,286            39,023          (0.5 )%     (20.2 )%
accounts
Gross new
stock plan        21,256            21,310            19,406          (0.3 )%     9.5   %
accounts
Gross new
banking          933             980             1,695          (4.8 )%     (45.0 )%
accounts
Total gross
new               53,312            53,576            60,124          (0.5 )%     (11.3 )%
accounts
                                                                                  
Net new
brokerage         9,941             9,127             18,120          N.M.        N.M.
accounts
Net new
stock plan        8,258             9,114             7,608           N.M.        N.M.
accounts
Net new
banking          (2,122    )      (2,841    )      (3,184    )     N.M.        N.M.
accounts
Net new           16,077            15,400            22,544          N.M.        N.M.
accounts
                                                                                  
End of
period            2,922,259         2,912,318         2,811,173       0.3  %      4.0   %
brokerage
accounts
End of
period            1,164,966         1,156,708         1,096,256       0.7  %      6.3   %
stock plan
accounts
End of
period           424,309         426,431         457,906        (0.5 )%     (7.3  )%
banking
accounts
End of
period            4,511,534         4,495,457         4,365,335       0.4  %      3.3   %
total
accounts
                                                                                  
Customer
Assets ($B)
Security        $ 144.9           $ 143.8           $ 133.7           0.8  %      8.4   %
holdings
Customer
payables          4.9               5.1               5.7             (3.9 )%     (14.0 )%
(cash)
Customer
cash
balances          9.5               9.3               3.7             2.2  %      156.8 %
held by
third
parties^(1)
Unexercised
stock plan
customer         25.5            25.2            23.3           1.2  %      9.4   %
options
(vested)
Customer
assets in
brokerage        184.8           183.4           166.4          0.8  %      11.1  %
and stock
plan
accounts
Sweep             19.8              19.8              21.2            0.0  %      (6.6  )%
deposits
Savings,
transaction      6.9             6.9             7.9            0.0  %      (12.7 )%
and other
Customer
assets in        26.7            26.7            29.1           0.0  %      (8.2  )%
banking
accounts
Total
customer        $ 211.5           $ 210.1           $ 195.5           0.7  %      8.2   %
assets
                                                                                  
Net new
brokerage       $ 0.9             $ 1.0             $ 1.9             N.M.        N.M.
assets
($B)^(2)
Net new
banking          (0.0      )      (0.2      )      0.1            N.M.        N.M.
assets
($B)^(2)
Net new
customer        $ 0.9             $ 0.8             $ 2.0             N.M.        N.M.
assets
($B)^(2)
                                                                                  
Brokerage
related         $ 34.2            $ 34.2            $ 30.6            0.0  %      11.8  %
cash ($B)
Other
customer
cash and         6.9             6.9             7.9            0.0  %      (12.7 )%
deposits
($B)
Total
customer
cash and        $ 41.1            $ 41.1            $ 38.5            0.0  %      6.8   %
deposits
($B)
                                                                                  
Customer
net
(purchase)      $ (0.9      )     $ (0.3      )     $ 0.0             N.M.        N.M.
/ sell
activity
($B)

(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

                                                          % Chg.     % Chg.     % Chg.
                 Feb-13     Jan-13     Dec-12     Feb 13   Jan 13   Feb 13
                                                          -          -          -
                                                          Jan 13     Dec 12     Dec 12
One- to
Four-Family
($MM)
                                                                                
Current            $ 4,734      $ 4,799      $ 4,858      (1  )%     (1  )%     (3  )%
30-89 days           211          216          233        (2  )%     (7  )%     (9  )%
delinquent
90-179 days         93          100         95         (7  )%     5   %      (2  )%
delinquent
Total 30-179
days                 304          316          328        (4  )%     (4  )%     (7  )%
delinquent
180+ days           272         274         279        (1  )%     (2  )%     (3  )%
delinquent
Total
delinquent          576         590         607        (2  )%     (3  )%     (5  )%
loans^(1)
Gross loans        $ 5,310      $ 5,389      $ 5,465      (1  )%     (1  )%     (3  )%
receivable^(2)
                                                                                
Home Equity
($MM)
                                                                                
Current            $ 3,947      $ 4,004      $ 4,065      (1  )%     (2  )%     (3  )%
30-89 days           84           85           90         (1  )%     (6  )%     (7  )%
delinquent
90-179 days         57          60          64         (5  )%     (6  )%     (11 )%
delinquent
Total 30-179
days                 141          145          154        (3  )%     (6  )%     (8  )%
delinquent
180+ days           42          41          41         2   %      0   %      2   %
delinquent
Total
delinquent          183         186         195        (2  )%     (5  )%     (6  )%
loans^(1)
Gross loans        $ 4,130      $ 4,190      $ 4,260      (1  )%     (2  )%     (3  )%
receivable^(2)
                                                                                
Consumer and
Other ($MM)
                                                                                
Current            $ 791        $ 812        $ 829        (3  )%     (2  )%     (5  )%
30-89 days           17           17           19         0   %      (11 )%     (11 )%
delinquent
90-179 days         4           5           6          (20 )%     (17 )%     (33 )%
delinquent
Total 30-179
days                 21           22           25         (5  )%     (12 )%     (16 )%
delinquent
180+ days           -           -           -          N.M.       N.M.       N.M.
delinquent
Total
delinquent          21          22          25         (5  )%     (12 )%     (16 )%
loans
Gross loans        $ 812        $ 834        $ 854        (3  )%     (2  )%     (5  )%
receivable^(2)
                                                                                
Total Loans
Receivable
($MM)
                                                                                
Current            $ 9,472      $ 9,615      $ 9,752      (1  )%     (1  )%     (3  )%
30-89 days           312          318          342        (2  )%     (7  )%     (9  )%
delinquent
90-179 days         154         165         165        (7  )%     0   %      (7  )%
delinquent
Total 30-179
days                 466          483          507        (4  )%     (5  )%     (8  )%
delinquent
180+ days           314         315         320        (0  )%     (2  )%     (2  )%
delinquent
Total
delinquent          780         798         827        (2  )%     (4  )%     (6  )%
loans^(1)
Total gross
loans              $ 10,252     $ 10,413     $ 10,579     (2  )%     (2  )%     (3  )%
receivable^(2)

(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.

Contact:

E*TRADE Financial Media Relations
646-521-4418
mediainq@etrade.com
or
E*TRADE Financial Investor Relations
Brett Goodman, 646-521-4406
brett.goodman@etrade.com
 
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