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

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

Business Wire

NEW YORK -- June 19, 2013

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

Daily Average Revenue Trades (“DARTs”) for May were 162,940, a 15 percent
increase from April and an 11 percent increase from the year-ago period. The
Company added 32,157 gross new brokerage accounts in May, ending the month
with approximately 3.0 million brokerage accounts – an increase of 15,648 from
April. Total accounts ended the month at approximately 4.6 million.

Net new brokerage assets were positive $1.0 billion in the month. During the
month, customer security holdings increased by two percent, or $2.5 billion,
and brokerage-related cash increased by $1.7 billion to $36.1 billion.
Bank-related cash and deposits ended the month unchanged, at $6.7 billion.
Customers were net sellers of approximately $0.8 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 13 percent from March 31, 2013 to May 31, 2013 and
decreased eight percent from April 30, 2013 to May 31, 2013, while total “at
risk” delinquencies (30 to 179 days delinquent) decreased 14 percent from
March 31, 2013 to May 31, 2013 and decreased six percent from April 30, 2013
to May 31, 2013. Additional loan delinquency data is provided in the second
table of this release.

Monthly Activity Data
               May-13          Apr-13          May-12          % Chg.   % Chg.
                                                                        M/M        Y/Y
                                                                                   
                                                                                   
Trading             22.0              22.0              22.0            N.M.       N.M.
days
                                                                                   
DARTs               162,940           141,255           146,254         15.4%      11.4%
                                                                                   
Gross new
brokerage           32,157            33,090            43,040          (2.8)%     (25.3)%
accounts
Gross new
stock plan          20,270            17,056            14,050          18.8%      44.3%
accounts
Gross new
banking            871             904             1,449          (3.7)%     (39.9)%
accounts
Total gross
new                 53,298            51,050            58,539          4.4%       (9.0)%
accounts
                                                                                   
Net new
brokerage           15,648            6,534             28,140          N.M.       N.M.
accounts
Net new
stock plan          8,858             4,828             4,633           N.M.       N.M.
accounts
Net new
banking            (2,084    )      (3,161    )      (3,623    )     N.M.       N.M.
accounts
Net new             22,422            8,201             29,150          N.M.       N.M.
accounts
                                                                                   
End of
period              2,955,407         2,939,759         2,866,451       0.5%       3.1%
brokerage
accounts
End of
period              1,181,453         1,172,595         1,090,700       0.8%       8.3%
stock plan
accounts
End of
period             416,747         418,831         449,231        (0.5)%     (7.2)%
banking
accounts
End of
period              4,553,607         4,531,185         4,406,382       0.5%       3.3%
total
accounts
                                                                                   
Customer
Assets ($B)
Security          $ 154.2           $ 151.7           $ 130.3           1.6%       18.3%
holdings
Customer
payables            5.5               5.1               5.1             7.8%       7.8%
(cash)
Customer
cash
balances            11.5              10.9              3.6             5.5%       219.4%
held by
third
parties^(1)
Unexercised
stock plan
customer           28.4            27.9            20.7           1.8%       37.2%
options
(vested)
Customer
assets in
brokerage          199.6           195.6           159.7          2.0%       25.0%
and stock
plan
accounts
Sweep               19.1              18.4              20.6            3.8%       (7.3)%
deposits
Savings,
transaction        6.7             6.7             7.5            0.0%       (10.7)%
and other
Customer
assets in          25.8            25.1            28.1           2.8%       (8.2)%
banking
accounts
Total
customer          $ 225.4           $ 220.7           $ 187.8           2.1%       20.0%
assets
                                                                                   
Net new
brokerage         $ 1.0             $ 0.0             $ 1.3             N.M.       N.M.
assets
($B)^(2)
Net new
banking            (0.0      )      (0.3      )      (0.2      )     N.M.       N.M.
assets
($B)^(2)
Net new
customer          $ 1.0             $ (0.3      )     $ 1.1             N.M.       N.M.
assets
($B)^(2)
                                                                                   
Brokerage
related           $ 36.1            $ 34.4            $ 29.3            4.9%       23.2%
cash ($B)
Other
customer
cash and           6.7             6.7             7.5            0.0%       (10.7)%
deposits
($B)
Total
customer
cash and          $ 42.8            $ 41.1            $ 36.8            4.1%       16.3%
deposits
($B)

Customer
net
(purchase)        $ 0.8             $ 0.0             $ (1.9      )     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.
                  May-13    Apr-13    Mar-13     May     Apr     May
                                                          13 -      13 -      13 -
                                                          Apr       Mar       Mar
                                                          13        13        13
One- to
Four-Family                                                              
($MM)
                                                                              
Current              $ 4,542     $ 4,600     $ 4,657      (1)%      (1)%      (2)%
30-89 days             191         211         220        (9)%      (4)%      (13)%
delinquent
90-179 days           83         85         100        (2)%      (15)%     (17)%
delinquent
Total 30-179
days                   274         296         320        (7)%      (8)%      (14)%
delinquent
180+ days             266        266        262        0 %       2 %       2 %
delinquent
Total
delinquent            540        562        582        (4)%      (3)%      (7)%
loans^(1)
Gross loans          $ 5,082     $ 5,162     $ 5,239      (2)%      (1)%      (3)%
receivable^(2)
                                                                              
Home Equity
($MM)
                                                                              
Current              $ 3,761     $ 3,829     $ 3,883      (2)%      (1)%      (3)%
30-89 days             66          68          76         (3)%      (11)%     (13)%
delinquent
90-179 days           46         47         52         (2)%      (10)%     (12)%
delinquent
Total 30-179
days                   112         115         128        (3)%      (10)%     (13)%
delinquent
180+ days             41         41         42         0 %       (2)%      (2)%
delinquent
Total
delinquent            153        156        170        (2)%      (8)%      (10)%
loans^(1)
Gross loans          $ 3,914     $ 3,985     $ 4,053      (2)%      (2)%      (3)%
receivable^(2)
                                                                              
Consumer and
Other ($MM)
                                                                              
Current              $ 694       $ 711       $ 730        (2)%      (3)%      (5)%
30-89 days             14          16          16         (13)%     0 %       (13)%
delinquent
90-179 days           3          3          2          0 %       50 %      50 %
delinquent
Total 30-179
days                   17          19          18         (11)%     6 %       (6)%
delinquent
180+ days             -          -          -          N.M.      N.M.      N.M.
delinquent
Total
delinquent            17         19         18         (11)%     6 %       (6)%
loans
Gross loans          $ 711       $ 730       $ 748        (3)%      (2)%      (5)%
receivable^(2)
                                                                              
Total Loans
Receivable
($MM)
                                                                              
Current              $ 8,997     $ 9,140     $ 9,270      (2)%      (1)%      (3)%
30-89 days             271         295         312        (8)%      (5)%      (13)%
delinquent
90-179 days           132        135        154        (2)%      (12)%     (14)%
delinquent
Total 30-179
days                   403         430         466        (6)%      (8)%      (14)%
delinquent
180+ days             307        307        304        0 %       1 %       1 %
delinquent
Total
delinquent            710        737        770        (4)%      (4)%      (8)%
loans^(1)
Total gross
loans                $ 9,707     $ 9,877     $ 10,040     (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
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.

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
 
Press spacebar to pause and continue. Press esc to stop.