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-13Jul-13Aug-12% Chg. M/M% Chg. Y/Y
Trading days22.021.523.0N.M.N.M.
DARTs147,517140,898121,5704.7 %21.3 %
Gross new brokerage accounts30,13225,03033,30320.4 %(9.5)%
Gross new stock plan accounts26,82720,31026,64932.1 %0.7 %
Gross new banking accounts 803 852 1,365(5.8)%(41.2)%
Total gross new accounts57,76246,19261,31725.0 %(5.8)%
Net new brokerage accounts9,466(1,859)18,034N.M.N.M.
Net new stock plan accounts13,6165,6919,478N.M.N.M.
Net new banking accounts (2,432) (2,497) (2,507)N.M.N.M.
Net new accounts20,6501,33525,005N.M.N.M.
End of period brokerage accounts2,970,3382,960,8722,888,2760.3 %2.8 %
End of period stock plan accounts1,205,1141,191,4981,119,0881.1 %7.7 %
End of period banking accounts 408,667 411,099 440,296(0.6)%(7.2)%
End of period total accounts4,584,1194,563,4694,447,6600.5 %3.1 %

Customer Assets ($B)

Security holdings$158.3$159.1$139.3(0.5)%13.6 %
Customer payables (cash)

Customer cash balances held by third parties(1) %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 deposits19.419.421.70.0 %(10.6)%
Savings, transaction and other 6.5 6.5 7.30.0 %(11.0)%
Customer assets in banking accounts 25.9 25.9 29.00.0 %(10.7)%
Total customer assets$232.3$234.1$200.3(0.8)%16.0 %

Net new brokerage assets ($B)(2)


Net new banking assets ($B)(2)

 (0.0) (0.1) 0.0N.M.N.M.

Net new customer assets ($B)(2)

Brokerage related cash ($B)$36.8$36.8$31.40.0 %17.2 %
Other customer cash and deposits ($B) 6.5 6.5 7.30.0 %(11.0)%
Total customer cash and deposits ($B)$43.3$43.3$38.70.0 %11.9 %
Customer net (purchase) / sell activity ($B)$(1.0)$0.9$1.2N.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.


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Loan Delinquency Data


% Chg.
Aug 13 -
Jul 13

% Chg.
Jul 13 -
Jun 13

% Chg.
Aug 13 -
Jun 13

One- to Four-Family ($MM)

30-89 days delinquent216296187(27)%58%16%
90-179 days delinquent 70 74 76(5)%(3)%(8)%
Total 30-179 days delinquent286370263(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)


Home Equity ($MM)

30-89 days delinquent666770(1)%(4)%(6)%
90-179 days delinquent 38 39 42(3)%(7)%(10)%
Total 30-179 days delinquent104106112(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)


Consumer and Other ($MM)

30-89 days delinquent1211129%(8)%0%
90-179 days delinquent 2 2 20%0%0%
Total 30-179 days delinquent1413148%(7)%0%
180+ days delinquent - - -N.M.N.M.N.M.
Total delinquent loans 14 13 148%