E*TRADE Financial Corporation Reports Monthly Activity for August 2013; Provides Updates to Its Loan
E*TRADE Financial Corporation Reports Monthly Activity for August 2013; Provides Updates to Its Loan Delinquencies
NEW YORK--(BUSINESS WIRE)-- E*TRADE Financial Corporation (NAS: ETFC) today released its Monthly Activity Report for August 2013.
Daily Average Revenue Trades ("DARTs") for August were 147,517, a five percent increase from July and a 21 percent increase from the year-ago period. The Company added 30,132 gross new brokerage accounts in August, ending the month with approximately 3.0 million brokerage accounts - an increase of 9,466 from July. Total accounts ended the month at approximately 4.6 million.
Net new brokerage assets were positive $1.1 billion in the month. During the month, customer security holdings decreased by one percent, or $0.8 billion, and brokerage-related cash ended the month unchanged at $36.8 billion. Bank-related cash and deposits also ended the month unchanged, at $6.5 billion. Customers were net buyers of approximately $1.0 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) increased nine percent from June 30, 2013 to August 31, 2013 and decreased 21 percent from July 31, 2013 to August 31, 2013, while total "at risk" delinquencies (30 to 179 days delinquent) increased four percent from June 30, 2013 to August 31, 2013 and decreased 17 percent from July 31, 2013 to August 31, 2013. Additional loan delinquency data is provided in the second table of this release.
The Company recently completed a servicer transfer of $1.6 billion in 1-4 family mortgages, prompted by changes to a servicer relationship. Servicer transfers typically create a temporary spike in delinquencies resulting from changes to borrower payment processes, which was demonstrated in July's increase in special mention delinquencies. Based on data received to date, and consistent with previous servicer transfers, the Company expects this temporary increase in delinquencies to revert to pre-transfer levels for the September reporting period.
Monthly Activity Data | ||||||||||||||||||
Aug-13 | Jul-13 | Aug-12 | % Chg. M/M | % Chg. Y/Y | ||||||||||||||
Trading days | 22.0 | 21.5 | 23.0 | N.M. | N.M. | |||||||||||||
DARTs | 147,517 | 140,898 | 121,570 | 4.7 % | 21.3 % | |||||||||||||
Gross new brokerage accounts | 30,132 | 25,030 | 33,303 | 20.4 % | (9.5)% | |||||||||||||
Gross new stock plan accounts | 26,827 | 20,310 | 26,649 | 32.1 % | 0.7 % | |||||||||||||
Gross new banking accounts | 803 | 852 | 1,365 | (5.8)% | (41.2)% | |||||||||||||
Total gross new accounts | 57,762 | 46,192 | 61,317 | 25.0 % | (5.8)% | |||||||||||||
Net new brokerage accounts | 9,466 | (1,859) | 18,034 | N.M. | N.M. | |||||||||||||
Net new stock plan accounts | 13,616 | 5,691 | 9,478 | N.M. | N.M. | |||||||||||||
Net new banking accounts | (2,432) | (2,497) | (2,507) | N.M. | N.M. | |||||||||||||
Net new accounts | 20,650 | 1,335 | 25,005 | N.M. | N.M. | |||||||||||||
End of period brokerage accounts | 2,970,338 | 2,960,872 | 2,888,276 | 0.3 % | 2.8 % | |||||||||||||
End of period stock plan accounts | 1,205,114 | 1,191,498 | 1,119,088 | 1.1 % | 7.7 % | |||||||||||||
End of period banking accounts | 408,667 | 411,099 | 440,296 | (0.6)% | (7.2)% | |||||||||||||
End of period total accounts | 4,584,119 | 4,563,469 | 4,447,660 | 0.5 % | 3.1 % | |||||||||||||
Customer Assets ($B) | ||||||||||||||||||
Security holdings | $ | 158.3 | $ | 159.1 | $ | 139.3 | (0.5)% | 13.6 % | ||||||||||
Customer payables (cash) | 5.4 | 5.6 | 5.8 | (3.6)% | (6.9)% | |||||||||||||
Customer cash balances held by third parties(1) | 12.0 | 11.8 | 3.9 | 1.7 % | 207.7 % | |||||||||||||
Unexercised stock plan customer options (vested) | 30.7 | 31.7 | 22.3 | (3.2)% | 37.7 % | |||||||||||||
Customer assets in brokerage and stock plan accounts | 206.4 | 208.2 | 171.3 | (0.9)% | 20.5 % | |||||||||||||
Sweep deposits | 19.4 | 19.4 | 21.7 | 0.0 % | (10.6)% | |||||||||||||
Savings, transaction and other | 6.5 | 6.5 | 7.3 | 0.0 % | (11.0)% | |||||||||||||
Customer assets in banking accounts | 25.9 | 25.9 | 29.0 | 0.0 % | (10.7)% | |||||||||||||
Total customer assets | $ | 232.3 | $ | 234.1 | $ | 200.3 | (0.8)% | 16.0 % | ||||||||||
Net new brokerage assets ($B)(2) | $ | 1.1 | $ | 0.6 | $ | 1.1 | 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) | $ | 1.1 | $ | 0.5 | $ | 1.1 | N.M. | N.M. | ||||||||||
Brokerage related cash ($B) | $ | 36.8 | $ | 36.8 | $ | 31.4 | 0.0 % | 17.2 % | ||||||||||
Other customer cash and deposits ($B) | 6.5 | 6.5 | 7.3 | 0.0 % | (11.0)% | |||||||||||||
Total customer cash and deposits ($B) | $ | 43.3 | $ | 43.3 | $ | 38.7 | 0.0 % | 11.9 % | ||||||||||
Customer net (purchase) / sell activity ($B) | $ | (1.0) | $ | 0.9 | $ | 1.2 | 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 | |||||||||||||||||||||
Aug-13 | Jul-13 | Jun-13 | % Chg. | % Chg. | % Chg. | ||||||||||||||||
One- to Four-Family ($MM) | |||||||||||||||||||||
Current | $ | 4,305 | $ | 4,309 | $ | 4,495 | (0)% | (4)% | (4)% | ||||||||||||
30-89 days delinquent | 216 | 296 | 187 | (27)% | 58% | 16% | |||||||||||||||
90-179 days delinquent | 70 | 74 | 76 | (5)% | (3)% | (8)% | |||||||||||||||
Total 30-179 days delinquent | 286 | 370 | 263 | (23)% | 41% | 9% | |||||||||||||||
180+ days delinquent | 243 | 252 | 262 | (4)% | (4)% | (7)% | |||||||||||||||
Total delinquent loans(1) | 529 | 622 | 525 | (15)% | 18% | 1% | |||||||||||||||
Gross loans receivable(2) | $ | 4,834 | $ | 4,931 | $ | 5,020 | (2)% | (2)% | (4)% | ||||||||||||
Home Equity ($MM) | |||||||||||||||||||||
Current | $ | 3,555 | $ | 3,621 | $ | 3,689 | (2)% | (2)% | (4)% | ||||||||||||
30-89 days delinquent | 66 | 67 | 70 | (1)% | (4)% | (6)% | |||||||||||||||
90-179 days delinquent | 38 | 39 | 42 | (3)% | (7)% | (10)% | |||||||||||||||
Total 30-179 days delinquent | 104 | 106 | 112 | (2)% | (5)% | (7)% | |||||||||||||||
180+ days delinquent | 39 | 41 | 41 | (5)% | 0% | (5)% | |||||||||||||||
Total delinquent loans(1) | 143 | 147 | 153 | (3)% | (4)% | (7)% | |||||||||||||||
Gross loans receivable(2) | $ | 3,698 | $ | 3,768 | $ | 3,842 | (2)% | (2)% | (4)% | ||||||||||||
Consumer and Other ($MM) | |||||||||||||||||||||
Current | $ | 648 | $ | 666 | $ | 681 | (3)% | (2)% | (5)% | ||||||||||||
30-89 days delinquent | 12 | 11 | 12 | 9% | (8)% | 0% | |||||||||||||||
90-179 days delinquent | 2 | 2 | 2 | 0% | 0% | 0% | |||||||||||||||
Total 30-179 days delinquent | 14 | 13 | 14 | 8% | (7)% | 0% | |||||||||||||||
180+ days delinquent | - | - | - | N.M. | N.M. | N.M. | |||||||||||||||
Total delinquent loans | 14 | 13 | 14 | 8% | |||||||||||||||||
