Average Enterprise Balance Sheet Data | Jun-08 | Mar-08 | Dec-07 | |||||||||||||||||||||||||||||||||
($ in thousands) | Average Balance | Operating Interest Inc./Exp. | Average Yield/Cost | Average Balance | Operating Interest Inc./Exp. | Average Yield/Cost | Average Balance | Operating Interest Inc./Exp. | Average Yield/Cost | |||||||||||||||||||||||||||
Enterprise interest-earning assets: | ||||||||||||||||||||||||||||||||||||
Loans, net(1) | $ | 28,225,411 | $ | 402,103 | 5.70 | % | $ | 29,925,013 | $ | 451,574 | 6.04 | % | $ | 31,911,892 | $ | 508,925 | 6.38 | % | ||||||||||||||||||
Margin receivables | 6,809,407 | 75,382 | 4.45 | % | 6,683,969 | 90,937 | 5.47 | % | 7,426,723 | 124,722 | 6.66 | % | ||||||||||||||||||||||||
Mortgage-backed and related available-for-sale securities | 8,643,520 | 98,587 | 4.56 | % | 9,281,381 | 110,072 | 4.74 | % | 11,820,948 | 150,820 | 5.10 | % | ||||||||||||||||||||||||
Available-for-sale investment securities | 132,572 | 2,148 | 6.48 | % | 169,848 | 2,835 | 6.67 | % | 3,262,363 | 54,235 | 6.65 | % | ||||||||||||||||||||||||
Trading securities | 528,495 | 9,151 | 6.93 | % | 572,817 | 10,708 | 7.48 | % | 91,437 | 2,012 | 8.80 | % | ||||||||||||||||||||||||
Cash and cash equivalents(2) | 2,367,936 | 17,777 | 3.02 | % | 1,468,776 | 13,833 | 3.79 | % | 726,675 | 8,574 | 4.68 | % | ||||||||||||||||||||||||
Stock borrow and other | 908,847 | 16,527 | 7.31 | % | 793,450 | 15,640 | 7.93 | % | 1,053,475 | 18,034 | 6.79 | % | ||||||||||||||||||||||||
Total average interest-earning assets | $ | 47,616,188 | $ | 621,675 | 5.23 | % | $ | 48,895,254 | $ | 695,599 | 5.70 | % | $ | 56,293,513 | $ | 867,322 | 6.15 | % | ||||||||||||||||||
Enterprise interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||
Retail deposits | $ | 26,077,330 | $ | 137,527 | 2.12 | % | $ | 25,383,594 | $ | 171,535 | 2.72 | % | $ | 26,759,763 | $ | 202,717 | 3.01 | % | ||||||||||||||||||
Brokered certificates of deposit | 1,132,630 | 14,184 | 5.04 | % | 1,229,811 | 15,169 | 4.96 | % | 738,659 | 9,369 | 5.03 | % | ||||||||||||||||||||||||
Customer payables | 4,561,706 | 7,949 | 0.70 | % | 4,348,906 | 9,910 | 0.92 | % | 5,340,382 | 14,999 | 1.11 | % | ||||||||||||||||||||||||
Repurchase agreements and other borrowings | 7,474,092 | 68,630 | 3.63 | % | 7,980,130 | 94,934 | 4.71 | % | 10,776,229 | 143,089 | 5.20 | % | ||||||||||||||||||||||||
FHLB advances | 4,629,974 | 51,609 | 4.41 | % | 5,974,084 | 70,802 | 4.69 | % | 8,433,904 | 107,259 | 4.98 | % | ||||||||||||||||||||||||
Stock loan and other | 1,143,405 | 3,254 | 1.14 | % | 1,679,887 | 10,640 | 2.55 | % | 1,601,877 | 12,321 | 3.05 | % | ||||||||||||||||||||||||
Total average interest-bearing liabilities | $ | 45,019,137 | $ | 283,153 | 2.51 | % | $ | 46,596,412 | $ | 372,990 | 3.20 | % | $ | 53,650,814 | $ | 489,754 | 3.59 | % | ||||||||||||||||||
Enterprise net interest spread(3) | $ | 338,522 | 2.72 | % | $ | 322,609 | 2.50 | % | $ | 377,568 | 2.56 | % | ||||||||||||||||||||||||
Reconciliation from Enterprise Net Interest Income to Consolidated Net Operating Interest Income |
Average Enterprise Balance Sheet Data | Sep-07 | Jun-07 | Mar-07 | |||||||||||||||||||||||||||||||||
($ in thousands) | Average Balance | Operating Interest Inc./Exp. | Average Yield/Cost | Average Balance | Operating Interest Inc./Exp. | Average Yield/Cost | Average Balance | Operating Interest Inc./Exp. | Average Yield/Cost | |||||||||||||||||||||||||||
Enterprise interest-earning assets: | ||||||||||||||||||||||||||||||||||||
Loans, net(1) | $ | 32,445,828 | $ | 528,193 | 6.51 | % | $ | 31,037,971 | $ | 497,517 | 6.41 | % | $ | 28,093,409 | $ | 451,399 | 6.43 | % | ||||||||||||||||||
Margin receivables | 7,348,376 | 133,791 | 7.22 | % | 6,772,898 | 123,317 | 7.30 | % | 6,573,401 | 120,319 | 7.42 | % | ||||||||||||||||||||||||
Mortgage-backed and related available-for-sale securities | 12,811,113 | 169,603 | 5.30 | % | 13,027,383 | 172,501 | 5.30 | % | 12,040,109 | 157,967 | 5.25 | % | ||||||||||||||||||||||||
Available-for-sale investment securities | 4,667,136 | 77,187 | 6.62 | % | 4,200,636 | 68,616 | 6.53 | % | 3,651,560 | 59,860 | 6.56 | % | ||||||||||||||||||||||||
Trading securities | 118,195 | 3,052 | 10.33 | % | 114,135 | 3,174 | 11.12 | % | 119,779 | 3,269 | 10.92 | % | ||||||||||||||||||||||||
Cash and cash equivalents(2) | 591,227 | 6,260 | 4.20 | % | 643,415 | 8,375 | 5.22 | % | 915,343 | 11,182 | 4.95 | % | ||||||||||||||||||||||||
Stock borrow and other | 1,042,589 | 19,849 | 7.55 | % | 983,382 | 18,411 | 7.51 | % | 756,882 | 12,968 | 6.95 | % | ||||||||||||||||||||||||
Total average interest-earning assets | $ | 59,024,464 | $ | 937,935 | 6.35 | % | $ | 56,779,820 | $ | 891,911 | 6.28 | % | $ | 52,150,483 | $ | 816,964 | 6.28 | % | ||||||||||||||||||
Enterprise interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||
Retail deposits | $ | 27,764,658 | $ | 216,426 | 3.09 | % | $ | 26,778,743 | $ | 200,081 | 3.00 | % | $ | 24,696,611 | $ | 177,329 | 2.91 | % | ||||||||||||||||||
Brokered certificates of deposit | 418,123 | 5,154 | 4.89 | % | 424,645 | 5,220 | 4.93 | % | 466,559 | 5,659 | 4.92 | % | ||||||||||||||||||||||||
Customer payables | 5,764,590 | 17,893 | 1.23 | % | 6,004,238 | 17,890 | 1.19 | % | 5,723,207 | 16,708 | 1.18 | % | ||||||||||||||||||||||||
Repurchase agreements and other borrowings | 12,582,907 | 165,925 | 5.16 | % | 13,558,998 | 175,337 | 5.12 | % | 12,137,872 | 159,031 | 5.24 | % | ||||||||||||||||||||||||
FHLB advances | 8,650,546 | 115,531 | 5.23 | % | 6,151,086 | 78,800 | 5.07 | % | 4,996,389 | 62,852 | 5.03 | % | ||||||||||||||||||||||||
Stock loan and other | 1,048,037 | 6,517 | 2.47 | % | 1,194,006 | 8,381 | 2.82 | % | 1,349,305 | 12,515 | 3.76 | % | ||||||||||||||||||||||||
Total average interest-bearing liabilities | $ | 56,228,861 | $ | 527,446 | 3.70 | % | $ | 54,111,716 | $ | 485,709 | 3.57 | % | $ | 49,369,943 | $ | 434,094 | 3.54 | % | ||||||||||||||||||
Enterprise net interest spread(3) | $ | 410,489 | 2.65 | % | $ | 406,202 | 2.71 | % | $ | 382,870 | 2.74 | % | ||||||||||||||||||||||||
Reconciliation from Enterprise Net Interest Income to Consolidated Net Operating Interest Income |
Average Enterprise Balance Sheet Data | Dec-06 | Sep-06 | Jun-06 | |||||||||||||||||||||||||||||||||
($ in thousands) | Average Balance | Operating Interest Inc./Exp. | Average Yield/Cost | Average Balance | OperatingInterest Inc./Exp. | Average Yield/Cost | Average Balance | Operating Interest Inc./Exp. | Average Yield/Cost | |||||||||||||||||||||||||||
Enterprise interest-earning assets: | ||||||||||||||||||||||||||||||||||||
Loans, net(1) | $ | 25,752,337 | $ | 415,360 | 6.45 | % | $ | 22,955,022 | $ | 364,744 | 6.36 | % | $ | 20,419,936 | $ | 303,499 | 5.95 | % | ||||||||||||||||||
Margin receivables | 6,430,118 | 119,213 | 7.36 | % | 6,485,166 | 121,085 | 7.41 | % | 6,839,327 | 121,044 | 7.10 | % | ||||||||||||||||||||||||
Mortgage-backed and related available-for-sale securities | 11,815,399 | 158,435 | 5.36 | % | 12,068,052 | 159,199 | 5.28 | % | 11,715,510 | 147,374 | 5.03 | % | ||||||||||||||||||||||||
Available-for-sale investment securities | 3,248,168 | 53,669 | 6.61 | % | 3,033,789 | 49,115 | 6.48 | % | 2,895,267 | 45,152 | 6.24 | % | ||||||||||||||||||||||||
Trading securities | 134,143 | 3,194 | 9.53 | % | 114,806 | 2,600 | 9.06 | % | 142,452 | 2,946 | 8.27 | % | ||||||||||||||||||||||||
Cash and cash equivalents(2) | 786,369 | 10,056 | 5.07 | % | 679,130 | 8,132 | 4.75 | % | 974,271 | 10,465 | 4.31 | % | ||||||||||||||||||||||||
Stock borrow and other | 846,388 | 14,234 | 6.67 | % | 552,794 | 10,815 | 7.76 | % | 592,875 | 10,358 | 7.01 | % | ||||||||||||||||||||||||
Total average interest-earning assets | $ | 49,012,922 | $ | 774,161 | 6.31 | % | $ | 45,888,759 | $ | 715,690 | 6.23 | % | $ | 43,579,638 | $ | 640,838 | 5.89 | % | ||||||||||||||||||
Enterprise interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||
Retail deposits | $ | 22,612,957 | $ | 159,889 | 2.81 | % | $ | 20,992,962 | $ | 141,035 | 2.67 | % | $ | 19,848,322 | $ | 115,062 | 2.33 | % | ||||||||||||||||||
Brokered certificates of deposit | 524,934 | 6,464 | 4.89 | % | 618,681 | 7,453 | 4.78 | % | 577,068 | 6,696 | 4.65 | % | ||||||||||||||||||||||||
Customer payables | 5,832,936 | 16,962 | 1.15 | % | 5,339,127 | 15,649 | 1.16 | % | 5,986,183 | 14,663 | 0.98 | % | ||||||||||||||||||||||||
Repurchase agreements and other borrowings | 11,870,171 | 157,625 | 5.20 | % | 11,586,260 | 150,837 | 5.09 | % | 10,580,283 | 129,103 | 4.83 | % | ||||||||||||||||||||||||
FHLB advances | 4,456,304 | 56,849 | 4.99 | % | 3,583,663 | 43,950 | 4.80 | % | 2,842,198 | 32,207 | 4.48 | % | ||||||||||||||||||||||||
Stock loan and other | 1,176,498 | 10,016 | 3.38 | % | 1,283,026 | 11,617 | 3.59 | % | 1,133,694 | 8,487 | 3.00 | % | ||||||||||||||||||||||||
Total average interest-bearing liabilities | $ | 46,473,800 | $ | 407,805 | 3.46 | % | $ | 43,403,719 | $ | 370,541 | 3.36 | % | $ | 40,967,748 | $ | 306,218 | 2.98 | % | ||||||||||||||||||
Enterprise net interest spread(3) | $ | 366,356 | 2.85 | % | $ | 345,149 | 2.87 | % | $ | 334,620 | 2.91 | % | ||||||||||||||||||||||||
Reconciliation from Enterprise Net Interest Income to Consolidated Net Operating Interest Income |
Average Enterprise Balance Sheet Data | Mar-06 | |||||||||||
($ in thousands) | Average Balance | Operating Interest Inc./Exp. | Average Yield/Cost | |||||||||
Enterprise interest-earning assets: | ||||||||||||
Loans, net(1) | $ | 19,571,064 | $ | 281,270 | 5.75 | % | ||||||
Margin receivables | 6,371,386 | 103,198 | 6.57 | % | ||||||||
Mortgage-backed and related available-for-sale securities | 10,555,616 | 125,504 | 4.76 | % | ||||||||
Available-for-sale investment securities | 2,357,391 | 35,190 | 5.97 | % | ||||||||
Trading securities | 138,660 | 2,648 | 7.64 | % | ||||||||
Cash and cash equivalents(2) | 1,279,552 | 13,386 | 4.24 | % | ||||||||
Stock borrow and other | 652,473 | 9,469 | 5.89 | % | ||||||||
Total average interest-earning assets | $ | 40,926,142 | $ | 570,665 | 5.59 | % | ||||||
Enterprise interest-bearing liabilities: | ||||||||||||
Retail deposits | $ | 18,120,089 | $ | 90,505 | 2.03 | % | ||||||
Brokered certificates of deposit | 420,600 | 4,113 | 3.97 | % | ||||||||
Customer payables | 6,383,907 | 14,775 | 0.94 | % | ||||||||
Repurchase agreements and other borrowings | 9,855,018 | 111,520 | 4.53 | % | ||||||||
FHLB advances | 3,054,111 | 32,539 | 4.26 | % | ||||||||
Stock loan and other | 669,753 | 4,197 | 2.54 | % | ||||||||
Total average interest-bearing liabilities | $ | 38,503,478 | $ | 257,649 | 2.69 | % | ||||||
Enterprise net interest spread(3) | $ | 313,016 | 2.90 | % | ||||||||
Reconciliation from Enterprise Net Interest Income to Consolidated Net Operating Interest Income |
Three Months Ended | ||||||||||||||||||||||||||||||||||||||||
($ in thousands) | Jun-08 | Mar-08 | Dec-07 | Sep-07 | Jun-07 | Mar-07 | Dec-06 | Sep-06 | Jun-06 | Mar-06 | ||||||||||||||||||||||||||||||
Enterprise net interest income | $ | 338,522 | $ | 322,609 | $ | 377,568 | $ | 410,489 | $ | 406,202 | $ | 382,870 | $ | 366,356 | $ | 345,149 | $ | 334,620 | $ | 313,016 | ||||||||||||||||||||
Less: Taxable equivalent adjustment(4) | (3,205 | ) | (3,698 | ) | (7,537 | ) | (8,523 | ) | (7,487 | ) | (7,320 | ) | (6,353 | ) | (5,246 | ) | (4,306 | ) | (3,392 | ) | ||||||||||||||||||||
Plus : Customer cash held by third parties and other(5) | 7,447 | 7,460 | 8,898 | 9,476 | 9,017 | 9,946 | 11,205 | 11,504 | 10,831 | 12,131 | ||||||||||||||||||||||||||||||
Consolidated net operating interest income | $ | 342,764 | $ | 326,371 | $ | 378,929 | $ | 411,442 | $ | 407,732 | $ | 385,496 | $ | 371,208 | $ | 351,407 | $ | 341,145 | $ | 321,755 | ||||||||||||||||||||
(1) Excludes loans to customers on margin. | |||||||||||||||||||
(2) Includes segregated cash balances. | |||||||||||||||||||
(3) Enterprise net interest spread is the taxable equivalent rate earned on average enterprise interest-earning assets less the rate paid on average enterprise interest-bearing liabilities, excluding corporate interest-earning assets and liabilities, stock conduit and customer cash held by third parties. | |||||||||||||||||||
(4) Gross-up for tax-exempt securities and loans. | |||||||||||||||||||
(5) Includes interest earned on average customer assets of $3.4 billion, $3.3 billion, $3.8 billion, $4.1 billion, $4.0 billion, $3.9 billion, $3.8 billion, $3.6 billion, $3.4 billion and $3.6 billion for the quarters ended June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006, respectively, held by parties outside E*TRADE FINANCIAL, including third party money market funds and sweep deposit accounts at unaffiliated financial institutions. Other consists of net operating interest income earned on average stock conduit assets of $0.01 million, $0.4 million, $2.2 million, $2.7 million, $13.1 million, $26.5 million, $362.4 million and $824.0 million for the quarters ended March 31, 2008, December 31, 2007, June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006, respectively. There were not any stock conduit assets at June 30, 2008 and September 30 |
Consolidated Income Statement Quarterly History Q106-Q208 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | Mar-06 | Jun-06 | Sep-06 | Dec-06 | Mar-07 | Jun-07 | Sep-07 | Dec-07 | Mar-08 | Jun-08 | 2006 | 2007 | YTD 2008 | |||||||||||||||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating interest income | $ | 589,663 | $ | 654,622 | $ | 725,023 | $ | 781,003 | $ | 820,934 | $ | 894,451 | $ | 938,979 | $ | 868,691 | $ | 699,591 | $ | 626,074 | $ | 2,750,311 | $ | 3,523,055 | $ | 1,325,665 | ||||||||||||||||||||||||||
Operating interest expense | (267,908 | ) | (313,477 | ) | (373,616 | ) | (409,795 | ) | (435,438 | ) | (486,719 | ) | (527,537 | ) | (489,762 | ) | (373,220 | ) | (283,310 | ) | (1,364,796 | ) | (1,939,456 | ) | (656,530 | ) | ||||||||||||||||||||||||||
Net operating interest income | 321,755 | 341,145 | 351,407 | 371,208 | 385,496 | 407,732 | 411,442 | 378,929 | 326,371 | 342,764 | 1,385,515 | 1,583,599 | 669,135 | |||||||||||||||||||||||||||||||||||||||
Commission | 168,389 | 159,803 | 127,413 | 141,471 | 151,804 | 162,682 | 180,622 | 168,534 | 122,255 | 122,235 | 597,076 | 663,642 | 244,490 | |||||||||||||||||||||||||||||||||||||||
Fees and service charges | 53,069 | 53,090 | 53,983 | 59,735 | 54,055 | 59,379 | 57,838 | 59,295 | 54,941 | 50,962 | 219,877 | 230,567 | 105,903 | |||||||||||||||||||||||||||||||||||||||
Principal transactions | 30,692 | 31,590 | 22,680 | 25,174 | 29,632 | 27,377 | 20,734 | 24,437 | 20,490 | 18,392 | 110,136 | 102,180 | 38,882 | |||||||||||||||||||||||||||||||||||||||
Gain (loss) on loans and securities, net | 2,559 | 8,823 | 4,171 | 5,647 | 11,598 | 636 | (201,130 | ) | (2,276,578 | ) | (8,567 | ) | (15,707 | ) | 21,200 | (2,465,474 | ) | (24,274 | ) | |||||||||||||||||||||||||||||||||
Other revenue | 7,678 | 9,134 | 8,522 | 9,508 | 9,598 | 11,050 | 12,614 | 13,950 | 13,604 | 13,691 | 34,842 | 47,212 | 27,295 | |||||||||||||||||||||||||||||||||||||||
Total non-interest income (expense) | 262,387 | 262,440 | 216,769 | 241,535 | 256,687 | 261,124 | 70,678 | (2,010,362 | ) | 202,723 | 189,573 | 983,131 | (1,421,873 | ) | 392,296 | |||||||||||||||||||||||||||||||||||||
Total net revenue | 584,142 | 603,585 | 568,176 | 612,743 | 642,183 | 668,856 | 482,120 | (1,631,433 | ) | 529,094 | 532,337 | 2,368,646 | 161,726 | 1,061,431 | ||||||||||||||||||||||||||||||||||||||
Provision for loan losses | 10,197 | 10,270 | 12,547 | 11,956 | 21,186 | 30,045 | 186,536 | 402,311 | 233,871 | 319,121 | 44,970 | 640,078 | 552,992 | |||||||||||||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and benefits | 106,311 | 115,486 | 100,680 | 106,467 | 114,732 | 110,652 | 110,092 | 99,309 | 123,128 | 96,082 | 428,944 | 434,785 | 219,210 | |||||||||||||||||||||||||||||||||||||||
Clearing and servicing | 61,701 | 62,461 | 60,157 | 60,024 | 63,547 | 70,093 | 74,809 | 61,750 | 44,885 | 46,122 | 244,343 | 270,199 | 91,007 | |||||||||||||||||||||||||||||||||||||||
Advertising and market development | 30,392 | 27,409 | 20,811 | 27,404 | 42,044 | 32,897 | 25,190 | 38,544 | 57,448 | 42,737 | 106,016 | 138,675 | 100,185 | |||||||||||||||||||||||||||||||||||||||
Communications | 29,691 | 26,026 | 23,721 | 23,550 | 24,019 | 23,655 | 25,254 | 25,419 | 25,094 | 24,500 | 102,988 | 98,347 | 49,594 | |||||||||||||||||||||||||||||||||||||||
Professional services | 26,293 | 21,589 | 19,077 | 23,181 | 23,062 | 22,589 | 19,252 | 34,290 | 23,645 | 25,749 | 90,140 | 99,193 | 49,394 | |||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 18,096 | 18,190 | 17,885 | 17,020 | 18,861 | 19,566 | 21,618 | 23,153 | 21,653 | 20,385 | 71,191 | 83,198 | 42,038 | |||||||||||||||||||||||||||||||||||||||
Occupancy and equipment | 18,389 | 18,158 | 19,766 | 20,566 | 21,435 | 20,791 | 21,143 | 21,820 | 20,498 | 21,698 | 76,879 | 85,189 | 42,196 | |||||||||||||||||||||||||||||||||||||||
Amortization of other intangibles | 11,318 | 11,972 | 12,087 | 10,829 | 10,268 | 10,187 | 10,485 | 9,532 | 10,910 | 9,135 | 46,206 | 40,472 | 20,045 | |||||||||||||||||||||||||||||||||||||||
Impairment of goodwill | - | - | - | - | - | - | - | 101,208 | - | - | - | 101,208 | - | |||||||||||||||||||||||||||||||||||||||
Facility restructuring and other exit activities | (505 | ) | 2,878 | 15,212 | 5,279 | 192 | (2,114 | ) | 5,037 | 24,068 | 10,566 | 12,433 | 22,864 | 27,183 | 22,999 | |||||||||||||||||||||||||||||||||||||
Other | 27,828 | 29,328 | 43,038 | 29,596 | 30,604 | 71,506 | 42,599 | 50,675 | 16,506 | 19,702 | 129,790 | 195,384 | 36,208 | |||||||||||||||||||||||||||||||||||||||
Total operating expenses | 329,514 | 333,497 | 332,434 | 323,916 | 348,764 | 379,822 | 355,479 | 489,768 | 354,333 | 318,543 | 1,319,361 | 1,573,833 | 672,876 | |||||||||||||||||||||||||||||||||||||||
Income (loss) before other income (expense), income taxes and discontinued operations | 244,431 | 259,818 | 223,195 | 276,871 | 272,233 | 258,989 | (59,895 | ) | (2,523,512 | ) | (59,110 | ) | (105,327 | ) | 1,004,315 | (2,052,185 | ) | (164,437 | ) | |||||||||||||||||||||||||||||||||
Income (loss) before other income (expense), income taxes and discontinued operations, excluding restructuring | 243,926 | 262,696 | 238,407 | 282,150 | 272,425 | 256,875 | (54,858 | ) | (2,499,444 | ) | (48,544 | ) | (92,894 | ) | 1,027,179 | (2,025,002 | ) | (141,438 | ) | |||||||||||||||||||||||||||||||||
% to revenue | 41.8 | % | 43.0 | % | 39.3 | % | 45.2 | % | 42.4 | % | 38.7 | % | N.M | N.M. | N.M. | N.M. | 42.4 | % | N.M. | N.M. | ||||||||||||||||||||||||||||||||
% to revenue excluding restructuring | 41.8 | % | 43.5 | % | 42.0 | % | 46.0 | % | 42.4 | % | 38.4 | % | N.M | N.M. | N.M. | N.M. | 43.4 | % | N.M. | N.M. | ||||||||||||||||||||||||||||||||
Corporate interest income | 1,961 | 2,188 | 1,942 | 2,342 | 1,705 | 1,001 | 1,018 | 2,031 | 2,426 | 1,806 | 8,433 | 5,755 | 4,232 | |||||||||||||||||||||||||||||||||||||||
Corporate interest expense | (40,508 | ) | (36,114 | ) | (37,964 | ) | (37,910 | ) | (37,791 | ) | (37,866 | ) | (37,365 | ) | (59,460 | ) | (95,241 | ) | (90,249 | ) | (152,496 | ) | (172,482 | ) | (185,490 | ) | ||||||||||||||||||||||||||
Gain (loss) on sales of investments, net | 17,616 | 15,290 | 26,991 | 10,899 | 19,756 | 17,267 | (18 | ) | (1,025 | ) | 502 | 18 | 70,796 | 35,980 | 520 | |||||||||||||||||||||||||||||||||||||
Gain (loss) on early extinguishment of debt | (135 | ) | (568 | ) | - | (476 | ) | - | 31 | (37 | ) | (13 | ) | (2,851 | ) | 12,935 | (1,179 | ) | (19 | ) | 10,084 | |||||||||||||||||||||||||||||||
Equity in income (loss) of investments and venture funds | (1,007 | ) | 189 | 2,519 | 750 | 8,095 | (840 | ) | (741 | ) | 1,151 | 4,699 | (1,594 | ) | 2,451 | 7,665 | 3,105 | |||||||||||||||||||||||||||||||||||
Total other income (expense) | (22,073 | ) | (19,015 | ) | (6,512 | ) | (24,395 | ) | (8,235 | ) | (20,407 | ) | (37,143 | ) | (57,316 | ) | (90,465 | ) | (77,084 | ) | (71,995 | ) | (123,101 | ) | (167,549 | ) | ||||||||||||||||||||||||||
Income (loss) before income taxes, discontinued operations and cumulative effect of accounting change | 222,358 | 240,803 | 216,683 | 252,476 | 263,998 | 238,582 | (97,038 | ) | (2,580,828 | ) | (149,575 | ) | (182,411 | ) | 932,320 | (2,175,286 | ) | (331,986 | ) | |||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 78,940 | 84,754 | 66,649 | 75,046 | 93,504 | 80,894 | (38,206 | ) | (869,141 | ) | (56,648 | ) | (62,968 | ) | 305,389 | (732,949 | ) | (119,616 | ) | |||||||||||||||||||||||||||||||||
Net income (loss) from continuing operations | 143,418 | 156,049 | 150,034 | 177,430 | 170,494 | 157,688 | (58,832 | ) | (1,711,687 | ) | (92,927 | ) | (119,443 | ) | 626,931 | (1,442,337 | ) | (212,370 | ) | |||||||||||||||||||||||||||||||||
Gain (loss) from discontinued operations | (947 | ) | 435 | 3,215 | (775 | ) | (1,084 | ) | 1,441 | 384 | (158 | ) | 1,734 | 24,884 | 1,928 | 583 | 26,618 | |||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 142,471 | $ | 156,484 | $ | 153,249 | $ | 176,655 | $ | 169,410 | $ | 159,129 | $ | (58,448 | ) | $ | (1,711,845 | ) | $ | (91,193 | ) | $ | (94,559 | ) | $ | 628,859 | $ | (1,441,754 | ) | $ | (185,752 | ) | ||||||||||||||||||||
Diluted earnings (loss) per share | $ | 0.33 | $ | 0.36 | $ | 0.35 | $ | 0.40 | $ | 0.39 | $ | 0.37 | $ | (0.14 | ) | $ | (3.98 | ) | $ | (0.20 | ) | $ | (0.19 | ) | $ | 1.44 | $ | (3.40 | ) | $ | (0.39 | ) | ||||||||||||||||||||
(1) All periods have been represented for the discontinued operations relating to E*TRADE Professional, Canadian brokerage business and lending business. |
Retail Segment Quarterly History Q106-Q208 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | Mar-06 | Jun-06 | Sep-06 | Dec-06 | Mar-07 | Jun-07 | Sep-07 | Dec-07 | Mar-08 | Jun-08 | 2006 | 2007 | YTD 2008 | |||||||||||||||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating interest income | $ | 313,220 | $ | 366,003 | $ | 390,430 | $ | 424,549 | $ | 445,195 | $ | 487,648 | $ | 525,864 | $ | 497,814 | $ | 416,421 | $ | 404,078 | $ | 1,494,202 | $ | 1,956,521 | $ | 820,499 | ||||||||||||||||||||||||||
Operating interest expense | (110,057 | ) | (140,410 | ) | (172,711 | ) | (200,562 | ) | (222,392 | ) | (243,111 | ) | (273,492 | ) | (254,969 | ) | (209,378 | ) | (183,385 | ) | (623,740 | ) | (993,964 | ) | (392,763 | ) | ||||||||||||||||||||||||||
Net operating interest income | 203,163 | 225,593 | 217,719 | 223,987 | 222,803 | 244,537 | 252,372 | 242,845 | 207,043 | 220,693 | 870,462 | 962,557 | 427,736 | |||||||||||||||||||||||||||||||||||||||
Commission | 130,245 | 121,884 | 96,229 | 110,105 | 117,302 | 122,133 | 135,721 | 145,060 | 121,669 | 122,124 | 458,463 | 520,216 | 243,793 | |||||||||||||||||||||||||||||||||||||||
Fees and service charges | 49,907 | 48,655 | 48,171 | 55,304 | 50,058 | 53,263 | 56,380 | 58,981 | 52,802 | 50,989 | 202,037 | 218,682 | 103,791 | |||||||||||||||||||||||||||||||||||||||
Gain (loss) on loans and securities, net | 1,627 | 1,377 | 238 | 173 | 176 | 102 | (98 | ) | - | (2 | ) | 18 | 3,415 | 180 | 16 | |||||||||||||||||||||||||||||||||||||
Other revenue | 7,817 | 9,397 | 8,488 | 9,654 | 9,730 | 11,142 | 9,810 | 9,971 | 9,677 | 10,284 | 35,356 | 40,653 | 19,961 | |||||||||||||||||||||||||||||||||||||||
Total non-interest income | 189,596 | 181,313 | 153,126 | 175,236 | 177,266 | 186,640 | 201,813 | 214,012 | 184,146 | 183,415 | 699,271 | 779,731 | 367,561 | |||||||||||||||||||||||||||||||||||||||
Total net revenue | 392,759 | 406,906 | 370,845 | 399,223 | 400,069 | 431,177 | 454,185 | 456,857 | 391,189 | 404,108 | 1,569,733 | 1,742,288 | 795,297 | |||||||||||||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and benefits | 62,214 | 70,932 | 67,890 | 68,880 | 72,069 | 72,088 | 74,379 | 69,779 | 84,089 | 74,503 | 269,916 | 288,315 | 158,592 | |||||||||||||||||||||||||||||||||||||||
Clearing and servicing | 14,781 | 17,295 | 16,527 | 16,219 | 17,694 | 19,372 | 20,481 | 19,697 | 16,604 | 19,966 | 64,822 | 77,244 | 36,570 | |||||||||||||||||||||||||||||||||||||||
Advertising and market development | 28,672 | 25,387 | 19,421 | 25,521 | 40,383 | 31,353 | 25,125 | 38,521 | 57,436 | 42,748 | 99,001 | 135,382 | 100,184 | |||||||||||||||||||||||||||||||||||||||
Communications | 27,308 | 23,261 | 20,954 | 20,702 | 21,176 | 20,920 | 22,471 | 22,640 | 23,529 | 23,264 | 92,225 | 87,207 | 46,793 | |||||||||||||||||||||||||||||||||||||||
Professional services | 20,986 | 16,654 | 10,555 | 13,547 | 13,312 | 14,577 | 12,817 | 22,456 | 14,790 | 15,423 | 61,742 | 63,162 | 30,213 | |||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 13,973 | 14,023 | 13,580 | 13,277 | 14,336 | 14,791 | 15,629 | 17,410 | 16,874 | 16,430 | 54,853 | 62,166 | 33,304 | |||||||||||||||||||||||||||||||||||||||
Occupancy and equipment | 17,003 | 16,347 | 18,262 | 17,287 | 18,626 | 17,924 | 18,292 | 20,898 | 19,415 | 20,492 | 68,899 | 75,740 | 39,907 | |||||||||||||||||||||||||||||||||||||||
Amortization of other intangibles | 9,859 | 9,814 | 9,913 | 10,002 | 9,619 | 9,536 | 9,370 | 9,372 | 8,777 | 8,743 | 39,588 | 37,897 | 17,520 | |||||||||||||||||||||||||||||||||||||||
Facility restructuring and other exit activities | 123 | 2,818 | 15,244 | 5,730 | 476 | (1,456 | ) | 427 | 6,408 | 182 | 5,725 | 23,915 | 5,855 | 5,907 | ||||||||||||||||||||||||||||||||||||||
Other | 18,481 | 20,336 | 32,760 | 20,030 | 18,380 | 29,656 | 30,849 | 36,011 | 26,394 | 6,438 | 91,607 | 114,896 | 32,832 | |||||||||||||||||||||||||||||||||||||||
Total operating expenses | 213,400 | 216,867 | 225,106 | 211,195 | 226,071 | 228,761 | 229,840 | 263,192 | 268,090 | 233,732 | 866,568 | 947,864 | 501,822 | |||||||||||||||||||||||||||||||||||||||
Segment income | $ | 179,359 | $ | 190,039 | $ | 145,739 | $ | 188,028 | $ | 173,998 | $ | 202,416 | $ | 224,345 | $ | 193,665 | $ | 123,099 | $ | 170,376 | $ | 703,165 | $ | 794,424 | $ | 293,475 | ||||||||||||||||||||||||||
Segment income, excluding restructuring | $ | 179,482 | $ | 192,857 | $ | 160,983 | $ | 193,758 | $ | 174,474 | $ | 200,960 | $ | 224,772 | $ | 200,073 | $ | 123,281 | $ | 176,101 | $ | 727,080 | $ | 800,279 | $ | 299,382 | ||||||||||||||||||||||||||
% to revenue | 45.7 | % | 46.7 | % | 39.3 | % | 47.1 | % | 43.5 | % | 46.9 | % | 49.4 | % | 42.4 | % | 31.5 | % | 42.2 | % | 44.8 | % | 45.6 | % | 36.9 | % | ||||||||||||||||||||||||||
% to revenue excluding restructuring | 45.7 | % | 47.4 | % | 43.4 | % | 48.5 | % | 43.6 | % | 46.6 | % | 49.5 | % | 43.8 | % | 31.5 | % | 43.6 | % | 46.3 | % | 45.9 | % | 37.6 | % | ||||||||||||||||||||||||||
(1) All periods have been represented for the discontinued operations relating to E*TRADE Professional, Canadian brokerage business and lending business. |
Institutional Segment Quarterly History Q106-Q208 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | Mar-06 | Jun-06 | Sep-06 | Dec-06 | Mar-07 | Jun-07 | Sep-07 | Dec-07 | Mar-08 | Jun-08 | 2006 | 2007 | YTD 2008 | |||||||||||||||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating interest income | $ | 453,199 | $ | 502,824 | $ | 575,866 | $ | 629,813 | $ | 670,831 | $ | 741,305 | $ | 787,253 | $ | 722,274 | $ | 590,384 | $ | 531,841 | $ | 2,161,702 | $ | 2,921,663 | $ | 1,122,225 | ||||||||||||||||||||||||||
Operating interest expense | (334,607 | ) | (387,272 | ) | (442,178 | ) | (482,592 | ) | (508,138 | ) | (578,110 | ) | (628,183 | ) | (586,190 | ) | (471,056 | ) | (409,770 | ) | (1,646,649 | ) | (2,300,621 | ) | (880,826 | ) | ||||||||||||||||||||||||||
Net operating interest income | 118,592 | 115,552 | 133,688 | 147,221 | 162,693 | 163,195 | 159,070 | 136,084 | 119,328 | 122,071 | 515,053 | 621,042 | 241,399 | |||||||||||||||||||||||||||||||||||||||
Commission | 38,144 | 37,919 | 31,184 | 31,366 | 34,502 | 40,549 | 44,901 | 23,474 | 586 | 111 | 138,613 | 143,426 | 697 | |||||||||||||||||||||||||||||||||||||||
Fees and service charges | 5,435 | 6,214 | 6,434 | 7,283 | 6,177 | 8,572 | 4,045 | 2,825 | 4,064 | 2,451 | 25,366 | 21,619 | 6,515 | |||||||||||||||||||||||||||||||||||||||
Principal transactions | 30,692 | 31,590 | 22,680 | 25,174 | 29,632 | 27,377 | 20,734 | 24,437 | 20,490 | 18,392 | 110,136 | 102,180 | 38,882 | |||||||||||||||||||||||||||||||||||||||
Gain (loss) on loans and securities, net | 932 | 7,446 | 3,933 | 5,474 | 11,422 | 534 | (201,032 | ) | (2,276,578 | ) | (8,565 | ) | (15,725 | ) | 17,785 | (2,465,654 | ) | (24,290 | ) | |||||||||||||||||||||||||||||||||
Other revenue | 87 | (22 | ) | 164 | 16 | 10 | 52 | 2,948 | 4,083 | 3,943 | 3,420 | 245 | 7,093 | 7,363 | ||||||||||||||||||||||||||||||||||||||
Total non-interest income (expense) | 75,290 | 83,147 | 64,395 | 69,313 | 81,743 | 77,084 | (128,404 | ) | (2,221,759 | ) | 20,518 | 8,649 | 292,145 | (2,191,336 | ) | 29,167 | ||||||||||||||||||||||||||||||||||||
Total net revenue | 193,882 | 198,699 | 198,083 | 216,534 | 244,436 | 240,279 | 30,666 | (2,085,675 | ) | 139,846 | 130,720 | 807,198 | (1,570,294 | ) | 270,566 | |||||||||||||||||||||||||||||||||||||
Provision for loan losses | 10,197 | 10,270 | 12,547 | 11,956 | 21,186 | 30,045 | 186,536 | 402,311 | 233,871 | 319,121 | 44,970 | 640,078 | 552,992 | |||||||||||||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and benefits | 44,097 | 44,554 | 32,790 | 37,587 | 42,663 | 38,564 | 35,713 | 29,530 | 39,039 | 21,579 | 159,028 | 146,470 | 60,618 | |||||||||||||||||||||||||||||||||||||||
Clearing and servicing | 49,419 | 47,186 | 44,382 | 46,819 | 48,175 | 53,321 | 57,059 | 44,668 | 30,222 | 28,647 | 187,806 | 203,223 | 58,869 | |||||||||||||||||||||||||||||||||||||||
Advertising and market development | 1,720 | 2,022 | 1,390 | 1,883 | 1,661 | 1,544 | 65 | 23 | 12 | (11 | ) | 7,015 | 3,293 | 1 | ||||||||||||||||||||||||||||||||||||||
Communications | 2,383 | 2,765 | 2,767 | 2,848 | 2,843 | 2,735 | 2,783 | 2,779 | 1,565 | 1,236 | 10,763 | 11,140 | 2,801 | |||||||||||||||||||||||||||||||||||||||
Professional services | 5,307 | 4,935 | 8,522 | 9,634 | 9,750 | 8,012 | 6,435 | 11,834 | 8,855 | 10,326 | 28,398 | 36,031 | 19,181 | |||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 4,123 | 4,167 | 4,305 | 3,743 | 4,525 | 4,775 | 5,989 | 5,743 | 4,779 | 3,955 | 16,338 | 21,032 | 8,734 | |||||||||||||||||||||||||||||||||||||||
Occupancy and equipment | 1,386 | 1,811 | 1,504 | 3,279 | 2,809 | 2,867 | 2,851 | 922 | 1,083 | 1,206 | 7,980 | 9,449 | 2,289 | |||||||||||||||||||||||||||||||||||||||
Amortization of other intangibles | 1,459 | 2,158 | 2,174 | 827 | 649 | 651 | 1,115 | 160 | 2,133 | 392 | 6,618 | 2,575 | 2,525 | |||||||||||||||||||||||||||||||||||||||
Impairment of goodwill | - | - | - | - | - | - | - | 101,208 | - | - | - | 101,208 | - | |||||||||||||||||||||||||||||||||||||||
Facility restructuring and other exit activities | (628 | ) | 60 | (32 | ) | (451 | ) | (284 | ) | (658 | ) | 4,610 | 17,660 | 10,384 | 6,708 | (1,051 | ) | 21,328 | 17,092 | |||||||||||||||||||||||||||||||||
Other | 9,347 | 8,992 | 10,278 | 9,566 | 12,224 | 41,850 | 11,750 | 14,664 | (9,888 | ) | 13,264 | 38,183 | 80,488 | 3,376 | ||||||||||||||||||||||||||||||||||||||
Total operating expenses | 118,613 | 118,650 | 108,080 | 115,735 | 125,015 | 153,661 | 128,370 | 229,191 | 88,184 | 87,302 | 461,078 | 636,237 | 175,486 | |||||||||||||||||||||||||||||||||||||||
Segment income (loss) | $ | 65,072 | $ | 69,779 | $ | 77,456 | $ | 88,843 | $ | 98,235 | $ | 56,573 | $ | (284,240 | ) | $ | (2,717,177 | ) | $ | (182,209 | ) | $ | (275,703 | ) | $ | 301,150 | $ | (2,846,609 | ) | $ | (457,912 | ) | ||||||||||||||||||||
Segment income (loss), excluding restructuring | $ | 64,444 | $ | 69,839 | $ | 77,424 | $ | 88,392 | $ | 97,951 | $ | 55,915 | $ | (279,630 | ) | $ | (2,699,517 | ) | $ | (171,825 | ) | $ | (268,995 | ) | $ | 300,099 | $ | (2,825,281 | ) | $ | (440,820 | ) | ||||||||||||||||||||
% to revenue | 33.6 | % | 35.1 | % | 39.1 | % | 41.0 | % | 40.2 | % | 23.5 | % | N.M. | N.M. | N.M. | N.M. | 37.3 | % | N.M. | N.M. | ||||||||||||||||||||||||||||||||
% to revenue excluding restructuring | 33.2 | % | 35.1 | % | 39.1 | % | 40.8 | % | 40.1 | % | 23.3 | % | N.M. | N.M. | N.M. | N.M. | 37.2 | % | N.M. | N.M. | ||||||||||||||||||||||||||||||||
(1) All periods have been represented for the discontinued operations relating to the Canadian brokerage business. |
Key Performance Metrics(1)(2) | Qtr ended 6/30/08 | Qtr ended 3/31/08 | Qtr ended 12/31/07 | Qtr ended 9/30/07 | Qtr ended 6/30/07 | Qtr ended 3/31/07 | Qtr ended 12/31/06 | Qtr ended 9/30/06 | Qtr ended 6/30/06 | Qtr ended 3/31/06 | ||||||||||||||||||||||||||||||
Corporate Metrics(3) | ||||||||||||||||||||||||||||||||||||||||
Operating margin %(4) | ||||||||||||||||||||||||||||||||||||||||
Consolidated | N.M. | N.M. | N.M. | N.M. | 39 | % | 42 | % | 45 | % | 39 | % | 43 | % | 42 | % | ||||||||||||||||||||||||
Retail | 42 | % | 31 | % | 42 | % | 49 | % | 47 | % | 43 | % | 47 | % | 39 | % | 47 | % | 46 | % | ||||||||||||||||||||
Institutional | N.M. | N.M. | N.M. | N.M. | 24 | % | 40 | % | 41 | % | 39 | % | 35 | % | 34 | % | ||||||||||||||||||||||||
Employees | 3,453 | 3,565 | 3,757 | 3,880 | 4,027 | 4,217 | 4,126 | 4,180 | 4,140 | 3,823 | ||||||||||||||||||||||||||||||
Consultants and other | 243 | 302 | 305 | 229 | 240 | 266 | 358 | 455 | 565 | 702 | ||||||||||||||||||||||||||||||
Total headcount | 3,696 | 3,867 | 4,062 | 4,109 | 4,267 | 4,483 | 4,484 | 4,635 | 4,705 | 4,525 | ||||||||||||||||||||||||||||||
Revenue per headcount | $ | 144,031 | $ | 136,823 | N.M. | $ | 117,333 | $ | 156,751 | $ | 143,248 | $ | 136,651 | $ | 122,584 | $ | 128,286 | $ | 129,092 | |||||||||||||||||||||
Revenue per compensation and benefits dollar | $ | 5.54 | $ | 4.30 | N.M. | $ | 4.38 | $ | 6.04 | $ | 5.60 | $ | 5.76 | $ | 5.64 | $ | 5.23 | $ | 5.49 | |||||||||||||||||||||
Book value per share | $ | 4.91 | $ | 5.80 | $ | 6.14 | $ | 9.69 | $ | 10.19 | $ | 10.19 | $ | 9.84 | $ | 9.44 | $ | 9.03 | $ | 8.61 | ||||||||||||||||||||
Tangible book value per share | $ | 0.42 | $ | 0.57 | $ | 0.84 | $ | 3.66 | $ | 4.17 | $ | 4.22 | $ | 3.87 | $ | 3.44 | $ | 3.11 | $ | 2.58 | ||||||||||||||||||||
Free cash ($MM) | $ | 922.4 | $ | 1,061.1 | $ | 860.8 | $ | 503.5 | $ | 431.7 | $ | 464.7 | $ | 525.8 | $ | 580.1 | $ | 650.8 | $ | 650.7 | ||||||||||||||||||||
Enterprise net interest spread (basis points)(5) | 272 | 250 | 256 | 265 | 271 | 274 | 285 | 287 | 291 | 290 | ||||||||||||||||||||||||||||||
Enterprise interest-earning assets, average ($MM)(6) | $ | 47,616 | $ | 48,895 | $ | 56,294 | $ | 59,024 | $ | 56,780 | $ | 52,150 | $ | 49,013 | $ | 45,889 | $ | 43,580 | $ | 40,926 | ||||||||||||||||||||
Earnings before interest, taxes, depreciation & amortization ("EBITDA") ($MM) | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) from continuing operations | $ | (119.4 | ) | $ | (92.9 | ) | $ | (1,711.7 | ) | $ | (58.8 | ) | $ | 157.7 | $ | 170.5 | $ | 177.4 | $ | 150.0 | $ | 156.0 | $ | 143.4 | ||||||||||||||||
Tax expense (benefit) | (63.0 | ) | $ | (56.6 | ) | $ | (869.1 | ) | $ | (38.2 | ) | $ | 80.9 | $ | 93.5 | $ | 75.0 | $ | 66.6 | $ | 84.8 | $ | 78.9 | |||||||||||||||||
Depreciation & amortization | 29.5 | 32.6 | 32.7 | 32.1 | 29.8 | 29.1 | 27.8 | 30.0 | 30.2 | 29.4 | ||||||||||||||||||||||||||||||
Corporate interest expense | 90.2 | 95.2 | 59.5 | 37.4 | 37.9 | 37.8 | 37.9 | 38.0 | 36.1 | 40.5 | ||||||||||||||||||||||||||||||
EBITDA | $ | (62.7 | ) | $ | (21.7 | ) | $ | (2,488.6 | ) | $ | (27.5 | ) | $ | 306.3 | $ | 330.9 | $ | 318.1 | $ | 284.6 | $ | 307.1 | $ | 292.2 | ||||||||||||||||
Interest coverage | (0.7 | ) | (0.2 | ) | (41.8 | ) | (0.7 | ) | 8.1 | 8.8 | 8.4 | 7.5 | 8.5 | 7.2 | ||||||||||||||||||||||||||
Discontinued operations ($MM) | ||||||||||||||||||||||||||||||||||||||||
Lending loss, net of tax | $ | (4.6 | ) | $ | (1.0 | ) | $ | (8.6 | ) | $ | (5.7 | ) | $ | (2.8 | ) | $ | (4.5 | ) | N.A. | N.A. | N.A. | N.A. | ||||||||||||||||||
Canada income, net of tax | 5.4 | 2.7 | 8.4 | 6.1 | 4.2 | 3.4 | N.A. | N.A. | N.A. | N.A. | ||||||||||||||||||||||||||||||
Canada - benefit of excess tax basis over book basis | 24.1 | - | - | - | - | - | N.A. | N.A. | N.A. | N.A. | ||||||||||||||||||||||||||||||
Income from discontinued operations, net of tax | $ | 24.9 | $ | 1.7 | $ | (0.2 | ) | $ | 0.4 | $ | 1.4 | $ | (1.1 | ) | N.A. | N.A. | N.A. | N.A. | ||||||||||||||||||||||
Bank earnings before taxes and before credit losses(7) | $ | 203.9 | $ | 182.7 | $ | 196.9 | $ | 225.0 | $ | 209.6 | $ | 178.4 | $ | 171.8 | $ | 149.7 | $ | 142.0 | $ | 122.2 | ||||||||||||||||||||
Retail Metrics(3) | ||||||||||||||||||||||||||||||||||||||||
Trading days | 64.0 | 61.0 | 63.0 | 62.5 | 63.0 | 61.0 | 62.5 | 62.5 | 63.0 | 62.0 | ||||||||||||||||||||||||||||||
Daily Average Revenue Trades ("DARTs") | ||||||||||||||||||||||||||||||||||||||||
US | 151,102 | 155,706 | 179,298 | 161,459 | 141,606 | 141,238 | 132,716 | 116,459 | 142,621 | 159,199 | ||||||||||||||||||||||||||||||
International | 21,212 | 24,849 | 24,626 | 23,952 | 19,020 | 19,931 | 15,597 | 13,274 | 16,579 | 16,271 | ||||||||||||||||||||||||||||||
DARTS from continuing operations | 172,314 | 180,555 | 203,924 | 185,411 | 160,626 | 161,169 | 148,313 | 129,733 | 159,200 | 175,470 | ||||||||||||||||||||||||||||||
DARTS from discontinued operations | - | 10,169 | 10,142 | 8,974 | 8,496 | 8,867 | 7,313 | 5,397 | 6,402 | 5,689 | ||||||||||||||||||||||||||||||
Total DARTs | 172,314 | 190,724 | 214,066 | 194,385 | 169,122 | 170,036 | 155,626 | 135,130 | 165,602 | 181,159 | ||||||||||||||||||||||||||||||
Total trades from continuing operations (MM) | 11.0 | 11.0 | 12.8 | 11.6 | 10.1 | 9.8 | 9.3 | 8.1 | 10.0 | 10.9 | ||||||||||||||||||||||||||||||
Total trades from discontinued operations (MM) | - | 0.6 | 0.7 | 0.5 | 0.6 | 0.6 | 0.4 | 0.3 | 0.4 | 0.3 | ||||||||||||||||||||||||||||||
Total trades (MM) | 11.0 | 11.6 | 13.5 | 12.1 | 10.7 | 10.4 | 9.7 | 8.4 | 10.4 | 11.2 | ||||||||||||||||||||||||||||||
Average commission per trade from continuing operations | $ | 11.07 | $ | 11.05 | $ | 11.29 | $ | 11.71 | $ | 12.07 | $ | 11.93 | $ | 11.88 | $ | 11.87 | $ | 12.15 | $ | 11.97 | ||||||||||||||||||||
Average commission per trade from discontinued operations | - | 10.83 | 11.56 | 11.71 | 11.30 | 11.10 | 11.90 | 13.85 | 14.09 | 15.93 | ||||||||||||||||||||||||||||||
Total average commission per trade | $ | 11.07 | $ | 11.04 | $ | 11.30 | $ | 11.71 | $ | 12.03 | $ | 11.89 | $ | 11.88 | $ | 11.95 | $ | 12.23 | $ | 12.10 | ||||||||||||||||||||
End of period margin debt from continuing operations ($B) | $ | 7.15 | $ | 6.46 | $ | 6.99 | $ | 7.38 | $ | 7.27 | $ | 6.82 | $ | 6.79 | $ | 6.26 | $ | 6.98 | $ | 6.70 | ||||||||||||||||||||
End of period margin debt from discontinued operations ($B) | - | 0.24 | 0.27 | 0.25 | 0.25 | 0.21 | 0.21 | 0.16 | 0.17 | 0.11 | ||||||||||||||||||||||||||||||
Total end of period margin debt ($B) | $ | 7.15 | $ | 6.70 | $ | 7.26 | $ | 7.63 | $ | 7.52 | $ | 7.03 | $ | 7.00 | $ | 6.42 | $ | 7.15 | $ | 6.81 | ||||||||||||||||||||
Average margin debt from continuing operations ($B) | $ | 6.86 | $ | 6.73 | $ | 7.51 | $ | 7.45 | $ | 6.89 | $ | 6.70 | $ | 6.54 | $ | 6.50 | $ | 6.85 | $ | 6.52 | ||||||||||||||||||||
Average margin debt from discontinued operations ($B) | - | 0.26 | 0.28 | 0.26 | 0.24 | 0.21 | 0.18 | 0.16 | 0.14 | 0.11 | ||||||||||||||||||||||||||||||
Total average margin debt ($B) | $ | 6.86 | $ | 6.99 | $ | 7.79 | $ | 7.71 | $ | 7.13 | $ | 6.91 | $ | 6.72 | $ | 6.66 | $ | 6.99 | $ | 6.63 | ||||||||||||||||||||
Gross new investing/trading accounts | 175,472 | 175,402 | 178,523 | 163,478 | 187,670 | 151,775 | 140,350 | 134,721 | 163,133 | 178,138 | ||||||||||||||||||||||||||||||
Gross new deposit/lending accounts | 56,211 | 119,294 | 90,338 | 94,174 | 103,307 | 137,569 | 69,564 | 57,270 | 65,733 | 51,933 | ||||||||||||||||||||||||||||||
Closed accounts | (201,794 | ) | (216,488 | ) | (256,322 | ) | (182,163 | ) | (193,589 | ) | (190,016 | ) | (223,363 | ) | (153,522 | ) | (196,274 | ) | (185,795 | ) | ||||||||||||||||||||
Net new accounts from continuing operations | 29,889 | 78,208 | 12,539 | 75,489 | 97,388 | 99,328 | (13,449 | ) | 38,469 | 32,592 | 44,276 | |||||||||||||||||||||||||||||
Net new accounts from discontinued operations | - | (16,400 | ) | (5,504 | ) | (13,314 | ) | 3,288 | 19,546 | 14,289 | 12,448 | 8,887 | 6,380 | |||||||||||||||||||||||||||
Net new accounts | 29,889 | 61,808 | 7,035 | 62,175 | 100,676 | 118,874 | 840 | 50,917 | 41,479 | 50,656 | ||||||||||||||||||||||||||||||
End of period investing/trading accounts | 3,519,378 | 3,506,506 | 3,507,655 | 3,545,816 | 3,534,252 | 3,499,986 | 3,500,842 | 3,526,587 | 3,521,186 | 3,531,795 | ||||||||||||||||||||||||||||||
End of period deposit/lending accounts | 875,959 | 858,942 | 779,585 | 728,885 | 664,960 | 601,838 | 501,654 | 489,358 | 456,290 | 413,089 | ||||||||||||||||||||||||||||||
End of period accounts from continuing operations | 4,395,337 | 4,365,448 | 4,287,240 | 4,274,701 | 4,199,212 | 4,101,824 | 4,002,496 | 4,015,945 | 3,977,476 | 3,944,884 | ||||||||||||||||||||||||||||||
End of period accounts from discontinued operations | - | 412,790 | 429,190 | 434,694 | 448,008 | 444,720 | 425,174 | 410,885 | 398,437 | 389,550 | ||||||||||||||||||||||||||||||
End of period total accounts | 4,395,337 | 4,778,238 | 4,716,430 | 4,709,395 | 4,647,220 | 4,546,544 | 4,427,670 | 4,426,830 | 4,375,913 | 4,334,434 | ||||||||||||||||||||||||||||||
Account Segmentation Detail(8) | ||||||||||||||||||||||||||||||||||||||||
Retail accounts within target segment(9) | 935,730 | 922,139 | 944,456 | 972,904 | 931,472 | 870,195 | 832,935 | N.A. | N.A. | N.A. | ||||||||||||||||||||||||||||||
Other retail accounts(10) | 2,440,794 | 2,414,695 | 2,288,024 | 2,248,086 | 2,208,768 | 2,180,399 | 2,108,469 | N.A. | N.A. | N.A. | ||||||||||||||||||||||||||||||
Corporate Services accounts | 1,018,813 | 1,028,614 | 1,054,760 | 1,053,711 | 1,058,972 | 1,051,230 | 1,061,092 | N.A. | N.A. | N.A. | ||||||||||||||||||||||||||||||
End of period accounts from continuing operations | 4,395,337 | 4,365,448 | 4,287,240 | 4,274,701 | 4,199,212 | 4,101,824 | 4,002,496 | N.A. | N.A. | N.A. | ||||||||||||||||||||||||||||||
End of period accounts from discontinued operations | - | 412,790 | 429,190 | 434,694 | 448,008 | 444,720 | 425,174 | N.A. | N.A. | N.A. | ||||||||||||||||||||||||||||||
End of period total accounts | 4,395,337 | 4,778,238 | 4,716,430 | 4,709,395 | 4,647,220 | 4,546,544 | 4,427,670 | N.A. | N.A. | N.A. | ||||||||||||||||||||||||||||||
Net new customers from continuing operations | 21,597 | 43,223 | 92 | 25,178 | 39,252 | 14,870 | (59,822 | ) | (10,928 | ) | 2,459 | (20,969 | ) | |||||||||||||||||||||||||||
Net new customers from discontinued operations and other (11) | (536,954 | ) | 17,160 | 4,500 | 2,243 | 11,941 | 22,230 | 54,939 | 40,137 | 8,581 | 6,298 | |||||||||||||||||||||||||||||
Total net new customers (11) | (515,357 | ) | 60,383 | 4,592 | 27,421 | 51,193 | 37,100 | (4,883 | ) | 29,209 | 11,040 | (14,671 | ) | |||||||||||||||||||||||||||
End of period total customers(11) | 3,105,300 | 3,620,657 | 3,560,274 | 3,555,682 | 3,528,261 | 3,477,068 | 3,439,968 | 3,444,851 | 3,415,642 | 3,404,602 | ||||||||||||||||||||||||||||||
End of period assets per customer | $ | 52,172 | $ | 46,508 | $ | 53,361 | $ | 61,320 | $ | 60,323 | $ | 57,659 | $ | 56,659 | $ | 53,632 | $ | 52,741 | $ | 56,403 | ||||||||||||||||||||
Consolidated net revenue per customer | $ | 171 | $ | 146 | $ | (458 | ) | $ | 136 | $ | 190 | $ | 185 | $ | 178 | $ | 165 | $ | 177 | $ | 172 | |||||||||||||||||||
Consolidated segment income (loss) per customer | $ | (34 | ) | $ | (16 | ) | $ | (709 | ) | $ | (17 | ) | $ | 73 | $ | 78 | $ | 80 | $ | 65 | $ | 76 | $ | 72 | ||||||||||||||||
Products per customer(12) | 2.4 | 2.1 | 2.1 | 2.1 | 2.1 | 2.1 | 2.1 | 2.1 | 2.1 | 2.1 | ||||||||||||||||||||||||||||||
Customer Assets ($B) | ||||||||||||||||||||||||||||||||||||||||
Security holdings | $ | 105.9 | $ | 105.4 | $ | 120.2 | $ | 138.5 | $ | 136.4 | $ | 130.2 | $ | 127.3 | $ | 120.8 | $ | 119.0 | $ | 125.4 | ||||||||||||||||||||
Customer payables (cash)(13) | 4.4 | 4.4 | 4.6 | 6.0 | 5.6 | 5.5 | 5.6 | 5.4 | 5.2 | 6.6 | ||||||||||||||||||||||||||||||
Customer cash balances held by third parties | 3.2 | 3.3 | 3.3 | 4.0 | 4.1 | 3.9 | 3.8 | 3.9 | 3.9 | 3.8 | ||||||||||||||||||||||||||||||
Unexercised Corporate Services customer options (vested) | 22.4 | 24.5 | 32.1 | 36.0 | 34.7 | 31.0 | 31.0 | 29.8 | 28.4 | 34.4 | ||||||||||||||||||||||||||||||
Customer assets in investing/trading accounts | 135.9 | 137.6 | 160.2 | 184.5 | 180.8 | 170.6 | 167.7 | 159.9 | 156.5 | 170.2 | ||||||||||||||||||||||||||||||
Sweep deposit accounts | 9.8 | 10.0 | 10.1 | 11.5 | 11.0 | 10.8 | 10.8 | 10.4 | 10.5 | 10.1 | ||||||||||||||||||||||||||||||
Transaction accounts | 13.0 | 12.5 | 10.5 | 12.8 | 11.7 | 10.3 | 8.0 | 6.8 | 6.1 | 5.7 | ||||||||||||||||||||||||||||||
CDs | 3.3 | 3.7 | 4.2 | 4.3 | 4.6 | 4.7 | 4.8 | 4.6 | 4.0 | 3.1 | ||||||||||||||||||||||||||||||
Customer assets in deposit accounts | 26.1 | 26.2 | 24.8 | 28.6 | 27.3 | 25.8 | 23.6 | 21.8 | 20.6 | 18.9 | ||||||||||||||||||||||||||||||
Customer assets from continuing operations | 162.0 | 163.8 | 185.0 | 213.1 | 208.1 | 196.4 | 191.3 | 181.7 | 177.1 | 189.1 | ||||||||||||||||||||||||||||||
Customer assets from discontinued operations | - | 4.6 | 5.0 | 4.9 | 4.7 | 4.1 | 3.6 | 3.1 | 3.0 | 2.9 | ||||||||||||||||||||||||||||||
Total customer assets | $ | 162.0 | $ | 168.4 | $ | 190.0 | $ | 218.0 | $ | 212.8 | $ | 200.5 | $ | 194.9 | $ | 184.8 | $ | 180.1 | $ | 192.0 | ||||||||||||||||||||
Net new customer assets from continuing operations ($B)(14) | $ | 1.8 | $ | 0.3 | $ | (16.4 | ) | $ | 1.1 | $ | 1.5 | $ | 2.4 | N.A. | N.A. | N.A. | N.A. | |||||||||||||||||||||||
Net new customer assets from discontinued operations and other ($B)(14) | (0.9 | ) | - | (0.1 | ) | - | 0.1 | 0.5 | N.A. | N.A. | N.A. | N.A. | ||||||||||||||||||||||||||||
Net new customer assets ($B)(14) | $ | 0.9 | $ | 0.3 | $ | (16.5 | ) | $ | 1.1 | $ | 1.6 | $ | 2.9 | N.A. | N.A. | N.A. | N.A. | |||||||||||||||||||||||
Total customer cash and deposits from continuing operations ($B) | $ | 33.7 | $ | 33.9 | $ | 32.7 | $ | 38.6 | $ | 37.0 | $ | 35.2 | $ | 33.0 | $ | 31.1 | $ | 29.7 | $ | 29.3 | ||||||||||||||||||||
Total customer cash and deposits from discontinued operations ($B) | - | 1.0 | 0.9 | 1.0 | 0.9 | 0.8 | 0.6 | 0.5 | 0.4 | 0.5 | ||||||||||||||||||||||||||||||
Total customer cash and deposits ($B) | $ | 33.7 | $ | 34.9 | $ | 33.6 | $ | 39.6 | $ | 37.9 | $ | 36.0 | $ | 33.6 | $ | 31.6 | $ | 30.1 | $ | 29.8 | ||||||||||||||||||||
Unexercised Corporate Services client options (unvested) ($B) | $ | 21.5 | $ | 20.2 | $ | 27.5 | $ | 27.2 | $ | 24.8 | $ | 20.5 | $ | 19.8 | $ | 18.7 | $ | 16.5 | $ | 21.8 | ||||||||||||||||||||
Institutional | ||||||||||||||||||||||||||||||||||||||||
Market Making | ||||||||||||||||||||||||||||||||||||||||
Equity shares traded (MM) | 36,999 | 33,503 | 37,781 | 46,389 | 59,988 | 47,425 | 41,645 | 54,472 | 69,537 | 90,871 | ||||||||||||||||||||||||||||||
Average revenue capture per 1,000 equity shares | $ | 0.466 | $ | 0.566 | $ | 0.586 | $ | 0.415 | $ | 0.433 | $ | 0.576 | $ | 0.551 | $ | 0.382 | $ | 0.387 | $ | 0.277 | ||||||||||||||||||||
% of Bulletin Board equity shares to total equity shares | 88.2 | % | 87.8 | % | 85.8 | % | 88.9 | % | 91.3 | % | 89.7 | % | 87.9 | % | 92.5 | % | 92.7 | % | 94.1 | % | ||||||||||||||||||||
Capital Ratios | ||||||||||||||||||||||||||||||||||||||||
Tier 1 Capital Ratio(15) | 6.73 | % | 6.78 | % | 6.22 | % | 5.88 | % | 6.15 | % | 6.24 | % | 6.07 | % | 5.80 | % | 5.85 | % | 6.03 | % | ||||||||||||||||||||
Risk Weighted Capital Ratio(15) | 12.24 | % | 12.36 | % | 11.37 | % | 10.55 | % | 10.58 | % | 10.48 | % | 10.55 | % | 10.61 | % | 11.01 | % | 11.21 | % | ||||||||||||||||||||
Excess E*TRADE Bank risk-based capital(15) | $ | 644.0 | $ | 695.3 | $ | 435.1 | $ | 192.6 | $ | 199.0 | $ | 161.9 | $ | 134.2 | $ | 136.4 | $ | 205.6 | $ | 227.6 | ||||||||||||||||||||
Loans receivable ($MM) | ||||||||||||||||||||||||||||||||||||||||
Average loans receivable | $ | 28,211 | $ | 29,890 | $ | 31,841 | $ | 32,272 | $ | 30,802 | $ | 27,837 | $ | 25,500 | $ | 22,780 | $ | 20,289 | $ | 19,482 | ||||||||||||||||||||
Ending loans receivable, net | $ | 26,960 | $ | 28,425 | $ | 30,039 | $ | 32,390 | $ | 31,484 | $ | 29,672 | $ | 26,373 | $ | 23,215 | $ | 20,872 | $ | 19,549 | ||||||||||||||||||||
One- to Four- Family | ||||||||||||||||||||||||||||||||||||||||
Loan performance detail ($MM) | ||||||||||||||||||||||||||||||||||||||||
Current | $ | 12,231 | $ | 14,033 | $ | 15,083 | $ | 16,558 | $ | 15,472 | $ | 13,178 | $ | 10,755 | $ | 8,837 | N.A. | N.A. | ||||||||||||||||||||||
30-89 days delinquent | 368 | 363 | 297 | 250 | 203 | 201 | 135 | 94 | N.A. | N.A. | ||||||||||||||||||||||||||||||
90-179 days delinquent | 192 | 151 | 120 | 62 | 38 | 24 | 19 | 25 | N.A. | N.A. | ||||||||||||||||||||||||||||||
180+ days delinquent | 180 | 141 | 61 | 53 | 28 | 23 | 15 | N.A. | N.A. | N.A. | ||||||||||||||||||||||||||||||
Total delinquent loans | 740 | 655 | 478 | 365 | 269 | 248 | 169 | 119 | N.A. | N.A. | ||||||||||||||||||||||||||||||
Gross loans receivable(16) | $ | 13,971 | $ | 14,688 | $ | 15,561 | $ | 16,923 | $ | 15,741 | $ | 13,426 | $ | 10,924 | $ | 8,956 | N.A. | N.A. | ||||||||||||||||||||||
Credit Quality and Reserve Metrics | ||||||||||||||||||||||||||||||||||||||||
Special mention loans (30-89 days delinquent) as a % of gross loans receivable | 2.63 | % | 2.47 | % | 1.91 | % | 1.47 | % | 1.29 | % | 1.50 | % | 1.23 | % | 1.04 | % | N.A. | N.A. | ||||||||||||||||||||||
Nonperforming loans (90+ days delinquent) as a % of gross loans receivable | 2.66 | % | 1.99 | % | 1.17 | % | 0.68 | % | 0.42 | % | 0.35 | % | 0.31 | % | 0.28 | % | N.A. | N.A. | ||||||||||||||||||||||
Total delinquent loans (30+ days delinquent) as a % of gross loans receivable | 5.30 | % | 4.46 | % | 3.07 | % | 2.15 | % | 1.71 | % | 1.85 | % | 1.54 | % | 1.32 | % | N.A. | N.A. | ||||||||||||||||||||||
Allowance for loan losses as a % of gross loans receivable | 0.37 | % | 0.28 | % | 0.12 | % | 0.06 | % | 0.02 | % | 0.02 | % | 0.07 | % | 0.07 | % | N.A. | N.A. | ||||||||||||||||||||||
Allowance for loan losses as a % of nonperforming loans | 14.03 | % | 14.17 | % | 10.39 | % | 8.11 | % | 5.43 | % | 7.04 | % | 23.10 | % | 23.80 | % | N.A. | N.A. | ||||||||||||||||||||||
Net charge-offs as a % of average loans receivable (annualized) | 0.91 | % | 0.38 | % | 0.10 | % | 0.01 | % | 0.00 | % | 0.02 | % | 0.01 | % | (0.00 | )% | N.A. | N.A. | ||||||||||||||||||||||
Provision as a % of average loans receivable (annualized) | 1.21 | % | 0.98 | % | 0.33 | % | 0.15 | % | 0.01 | % | (0.13 | )% | 0.08 | % | 0.02 | % | N.A. | N.A. | ||||||||||||||||||||||
Home Equity | ||||||||||||||||||||||||||||||||||||||||
Loan performance detail ($MM) | ||||||||||||||||||||||||||||||||||||||||
Current | $ | 10,454 | $ | 11,029 | $ | 11,603 | $ | 12,262 | $ | 12,391 | $ | 12,849 | $ | 11,955 | $ | 10,625 | N.A. | N.A. | ||||||||||||||||||||||
30-89 days delinquent | 282 | 277 | 291 | 253 | 181 | 141 | 101 | 48 | N.A. | N.A. | ||||||||||||||||||||||||||||||
90-179 days delinquent | 250 | 222 | 186 | 117 | 70 | 42 | 21 | 24 | N.A. | N.A. | ||||||||||||||||||||||||||||||
180+ days delinquent | 55 | 63 | 44 | 34 | 28 | 21 | 11 | N.A. | N.A. | N.A. | ||||||||||||||||||||||||||||||
Total delinquent loans | 587 | 562 | 521 | 404 | 279 | 204 | 133 | 72 | N.A. | N.A. | ||||||||||||||||||||||||||||||
Gross loans receivable(16) | $ | 11,041 | $ | 11,591 | $ | 12,124 | $ | 12,666 | $ | 12,670 | $ | 13,053 | $ | 12,088 | $ | 10,697 | N.A. | N.A. | ||||||||||||||||||||||
Credit Quality and Reserve Metrics | ||||||||||||||||||||||||||||||||||||||||
Special mention loans (30-89 days delinquent) as a % of gross loans receivable | 2.56 | % | 2.39 | % | 2.41 | % | 1.99 | % | 1.42 | % | 1.08 | % | 0.83 | % | 0.45 | % | N.A. | N.A. | ||||||||||||||||||||||
Nonperforming loans (90+ days delinquent) as a % of gross loans receivable | 2.76 | % | 2.46 | % | 1.89 | % | 1.19 | % | 0.77 | % | 0.48 | % | 0.27 | % | 0.22 | % | N.A. | N.A. | ||||||||||||||||||||||
Total delinquent loans (30+ days delinquent) as a % of gross loans receivable | 5.32 | % | 4.85 | % | 4.30 | % | 3.19 | % | 2.19 | % | 1.56 | % | 1.10 | % | 0.67 | % | N.A. | N.A. | ||||||||||||||||||||||
Allowance for loan losses as a % of gross loans receivable | 4.95 | % | 4.23 | % | 3.79 | % | 1.38 | % | 0.40 | % | 0.31 | % | 0.26 | % | 0.29 | % | N.A. | N.A. | ||||||||||||||||||||||
Allowance for loan losses as a % of nonperforming loans | 179.32 | % | 172.18 | % | 200.05 | % | 115.69 | % | 51.11 | % | 64.61 | % | 98.31 | % | 131.54 | % | N.A. | N.A. | ||||||||||||||||||||||
Net charge-offs as a % of average loans receivable (annualized) | 7.18 | % | 5.02 | % | 2.94 | % | 1.46 | % | 0.49 | % | 0.37 | % | 0.20 | % | 0.13 | % | N.A. | N.A. | ||||||||||||||||||||||
Provision as a % of average loans receivable (annualized) | 9.14 | % | 6.09 | % | 12.11 | % | 5.45 | % | 0.78 | % | 0.67 | % | 0.22 | % | 0.21 | % | N.A. | N.A. | ||||||||||||||||||||||
Consumer and Other | ||||||||||||||||||||||||||||||||||||||||
Loan performance detail ($MM) | ||||||||||||||||||||||||||||||||||||||||
Current | $ | 2,553 | $ | 2,682 | $ | 2,830 | $ | 2,985 | $ | 3,133 | $ | 3,242 | $ | 3,396 | $ | 3,601 | N.A. | N.A. | ||||||||||||||||||||||
30-89 days delinquent | 23 | 23 | 24 | 17 | 12 | 13 | 23 | 25 | N.A. | N.A. | ||||||||||||||||||||||||||||||
90-179 days delinquent | 7 | 6 | 7 | 7 | 3 | 6 | 9 | 6 | N.A. | N.A. | ||||||||||||||||||||||||||||||
180+ days delinquent | 1 | 1 | 1 | 1 | - | - | - | N.A. | N.A. | N.A. | ||||||||||||||||||||||||||||||
Total delinquent loans | 31 | 30 | 32 | 25 | 15 | 19 | 32 | 31 | N.A. | N.A. | ||||||||||||||||||||||||||||||
Gross loans receivable(16) | $ | 2,584 | $ | 2,712 | $ | 2,862 | $ | 3,010 | $ | 3,148 | $ | 3,261 | $ | 3,428 | $ | 3,632 | N.A. | N.A. | ||||||||||||||||||||||
Credit Quality and Reserve Metrics | ||||||||||||||||||||||||||||||||||||||||
Special mention loans (30-89 days delinquent) as a % of gross loans receivable | 0.88 | % | 0.84 | % | 0.83 | % | 0.63 | % | 0.39 | % | 0.39 | % | 0.69 | % | 0.69 | % | N.A. | N.A. | ||||||||||||||||||||||
Nonperforming loans (90+ days delinquent) as a % of gross loans receivable | 0.30 | % | 0.26 | % | 0.27 | % | 0.25 | % | 0.11 | % | 0.18 | % | 0.26 | % | 0.16 | % | N.A. | N.A. | ||||||||||||||||||||||
Total delinquent loans (30+ days delinquent) as a % of gross loans receivable | 1.18 | % | 1.11 | % | 1.10 | % | 0.88 | % | 0.50 | % | 0.57 | % | 0.95 | % | 0.85 | % | N.A. | N.A. | ||||||||||||||||||||||
Allowance for loan losses as a % of gross loans receivable | 1.45 | % | 1.24 | % | 1.05 | % | 0.82 | % | 0.70 | % | 0.73 | % | 0.82 | % | 0.90 | % | N.A. | N.A. | ||||||||||||||||||||||
Allowance for loan losses as a % of nonperforming loans | 482.78 | % | 471.56 | % | 396.71 | % | 332.30 | % | 630.11 | % | 400.72 | % | 316.61 | % | 567.76 | % | N.A. | N.A. | ||||||||||||||||||||||
Net charge-offs as a % of average loans receivable (annualized) | 2.01 | % | 1.74 | % | 1.11 | % | 0.92 | % | 0.83 | % | 1.03 | % | 0.91 | % | 0.70 | % | N.A. | N.A. | ||||||||||||||||||||||
Provision as a % of average loans receivable (annualized) | 2.57 | % | 2.24 | % | 1.87 | % | 1.25 | % | 0.61 | % | 0.51 | % | 0.38 | % | 0.72 | % | N.A. | N.A. | ||||||||||||||||||||||
Total Loans Receivable | ||||||||||||||||||||||||||||||||||||||||
Loan performance detail ($MM) | ||||||||||||||||||||||||||||||||||||||||
Current | $ | 26,238 | $ | 27,744 | $ | 29,516 | $ | 31,805 | $ | 30,996 | $ | 29,269 | $ | 26,106 | $ | 23,063 | $ | 20,764 | $ | 19,430 | ||||||||||||||||||||
30-89 days delinquent | 673 | 663 | 612 | 520 | 396 | 355 | 259 | 167 | 129 | 142 | ||||||||||||||||||||||||||||||
90-179 days delinquent | 449 | 379 | 313 | 186 | 111 | 72 | 49 | 55 | 46 | 41 | ||||||||||||||||||||||||||||||
180+ days delinquent | 236 | 205 | 106 | 88 | 56 | 44 | 26 | N.A. | N.A. | N.A. | ||||||||||||||||||||||||||||||
Total delinquent loans | 1,358 | 1,247 | 1,031 | 794 | 563 | 471 | 334 | 222 | 175 | 183 | ||||||||||||||||||||||||||||||
Total gross loans receivable (16) | $ | 27,596 | $ | 28,991 | $ | 30,547 | $ | 32,599 | $ | 31,559 | $ | 29,740 | $ | 26,440 | $ | 23,285 | $ | 20,939 | $ | 19,613 | ||||||||||||||||||||
Credit Quality and Reserve Metrics | ||||||||||||||||||||||||||||||||||||||||
Special mention loans (30-89 days delinquent) as a % of gross loans receivable | 2.44 | % | 2.29 | % | 2.00 | % | 1.60 | % | 1.25 | % | 1.19 | % | 0.98 | % | 0.72 | % | 0.62 | % | 0.72 | % | ||||||||||||||||||||
Nonperforming loans (90+ days delinquent) as a % of gross loans receivable | 2.48 | % | 2.02 | % | 1.02 | % | 0.84 | % | 0.53 | % | 0.39 | % | 0.28 | % | 0.24 | % | 0.22 | % | 0.21 | % | ||||||||||||||||||||
Total delinquent loans (30+ days delinquent) as a % of gross loans receivable | 4.92 | % | 4.30 | % | 3.37 | % | 2.44 | % | 1.78 | % | 1.58 | % | 1.26 | % | 0.96 | % | 0.84 | % | 0.93 | % | ||||||||||||||||||||
Allowance for loan losses as a % of gross loans receivable | 2.30 | % | 1.95 | % | 1.66 | % | 0.64 | % | 0.24 | % | 0.23 | % | 0.26 | % | 0.30 | % | 0.32 | % | 0.33 | % | ||||||||||||||||||||
Allowance for loan losses as a % of nonperforming loans | 92.95 | % | 96.84 | % | 121.44 | % | 76.24 | % | 45.34 | % | 58.68 | % | 90.52 | % | 127.57 | % | 144.45 | % | 158.79 | % | ||||||||||||||||||||
Net charge-offs as a % of average loans receivable (annualized) | 3.53 | % | 2.36 | % | 1.30 | % | 0.66 | % | 0.29 | % | 0.30 | % | 0.22 | % | 0.17 | % | 0.15 | % | 0.18 | % | ||||||||||||||||||||
Provision as a % of average loans receivable (annualized) | 4.52 | % | 3.13 | % | 5.05 | % | 2.31 | % | 0.39 | % | 0.30 | % | 0.19 | % | 0.22 | % | 0.20 | % | 0.21 | % | ||||||||||||||||||||
(1) Amounts and percentages may not calculate due to rounding. | ||||||||||||||||||||||||||||||||||||||||
(2) The unaudited information is presented to provide additional disclosure surrounding metrics from discontinued operations to historical periods. Because this information is unaudited and not in its final format, figures included are subject to change. | ||||||||||||||||||||||||||||||||||||||||
(3) Data has been reclassified to reflect discontinued operations related to the Canadian brokerage business and lending business. | ||||||||||||||||||||||||||||||||||||||||
(4) Operating margin is the percentage of net revenue that results in net income (loss) before other income (expense), income taxes and discontinued operations. The percentage is calculated by dividing our income (loss) before other income (expense), | ||||||||||||||||||||||||||||||||||||||||
income taxes and discontinued operations by our total net revenue. | ||||||||||||||||||||||||||||||||||||||||
(5) Enterprise net interest spread is the taxable equivalent rate earned on average enterprise interest-earning assets less the rate paid on average enterprise interest-bearing liabilities, excluding corporate interest-earning assets and liabilities, stoc | ||||||||||||||||||||||||||||||||||||||||
(6) Enterprise interest-earning assets consists of the primary interest-earning assets of the Company and includes: loans receivable, mortgage-backed and available-for-sale securities, margin loans, stock borrow balances, and cash required to be segregat | ||||||||||||||||||||||||||||||||||||||||
that earn interest for the Company. | ||||||||||||||||||||||||||||||||||||||||
(7) Bank earnings before taxes and before credit losses represents the pre-tax earnings of E*TRADE Bank Holding Company ("ETBH" or "Bank") before discontinued operations, gain (loss) on securities, net and provision for loan losses. | ||||||||||||||||||||||||||||||||||||||||
This metric shows the amount of earnings that the Bank, after accruing for the interest expense on its trust preferred securities, generates each quarter prior to credit related losses, primarily provision and gain (loss) on securities. Management believe | ||||||||||||||||||||||||||||||||||||||||
to investors and analysts as it is an indicator of the level of credit related losses the Bank can absorb without causing a decline in E*TRADE Bank's excess risk based capital (a). Below is a reconciliation of Bank earnings before taxes and before credit | ||||||||||||||||||||||||||||||||||||||||
income taxes and discontinued operations: | ||||||||||||||||||||||||||||||||||||||||
6/30/08 | 3/31/08 | 12/31/07 | 9/30/07 | 6/30/07 | 3/31/07 | 12/31/06 | 9/30/06 | 6/30/06 | 3/31/06 | |||||||||||||||||||||||||||||||
Income (loss) before income taxes and discontinued operations | (182,411 | ) | (149,575 | ) | (2,580,828 | ) | (97,038 | ) | 238,582 | 263,998 | 252,476 | 216,683 | 240,803 | 222,358 | ||||||||||||||||||||||||||
Add back: | ||||||||||||||||||||||||||||||||||||||||
Non-bank (income) loss before tax and discontinued operations(b) | 51,736 | 90,285 | (125 | ) | (63,174 | ) | (53,177 | ) | (90,746 | ) | (85,645 | ) | (65,412 | ) | (97,508 | ) | (93,816 | ) | ||||||||||||||||||||||
Provision for loan losses | 319,121 | 233,871 | 402,311 | 186,536 | 30,045 | 21,186 | 11,956 | 12,547 | 10,270 | 10,197 | ||||||||||||||||||||||||||||||
(Gain) loss on securities, net(c) | 15,422 | 8,069 | 2,274,355 | 198,723 | (5,870 | ) | (16,079 | ) | (7,030 | ) | (14,132 | ) | (11,563 | ) | (16,516 | ) | ||||||||||||||||||||||||
Impairment of goodwill | - | - | 101,208 | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Bank earnings before taxes and before credit losses | 203,868 | 182,650 | 196,921 | 225,047 | 209,580 | 178,359 | 171,757 | 149,686 | 142,002 | 122,223 | ||||||||||||||||||||||||||||||
(a) Excess risk based capital is the excess capital that E*TRADE Bank has compared to the regulatory minimum well-capitalized threshold. | ||||||||||||||||||||||||||||||||||||||||
(b) Non-bank income (loss) represents all of the Company's subsidiaries including Corporate and Brokerage, but excluding the Bank. | ||||||||||||||||||||||||||||||||||||||||
(c) Gain (loss) on securities, net is included in the Gain (loss) on loans and securities, net line item on the consolidated statement of income (loss). | ||||||||||||||||||||||||||||||||||||||||
(8) Data prior to Q4 2006 is not available. | ||||||||||||||||||||||||||||||||||||||||
(9) Target segment accounts are accounts held by customers with over $50,000 in assets and/or generating 30 or more trades per quarter. | ||||||||||||||||||||||||||||||||||||||||
(10) Other retail accounts are accounts that (a) were opened less than 90 days prior to the end of the relevant quarter; (b) only include a lending relationship or (c) that otherwise do not meet the definition of a target segment account. | ||||||||||||||||||||||||||||||||||||||||
(11) Net new customers from discontinued operations and other consists of customers related to our discontinued operations and the impact of an improvement in our customer identification methodology implemented during the second quarter of 2008. End of pe | ||||||||||||||||||||||||||||||||||||||||
(12) Products per customer increased in Q208 due to the impact of customers related to our discontinued operations and an improvement in our customer identification methodology implemented during the second quarter of 2008. | ||||||||||||||||||||||||||||||||||||||||
(13) Excludes customer payables (cash) from discontinued operations. | ||||||||||||||||||||||||||||||||||||||||
(14) Net new customer assets are total inflows to all new and existing customer accounts less total outflows from all closed and existing customer and closed accounts. Data prior to Q107 is not available. In Q208, net new customer assets from discontinued | ||||||||||||||||||||||||||||||||||||||||
(15) Q2 2008 estimate. Quarters beginning in Q107 include the results of E*TRADE Clearing, LLC, which became an operating subsidiary of E*TRADE Bank in Q1 2007. | ||||||||||||||||||||||||||||||||||||||||
(16) Includes unpaid principal balances and premiums (discounts). |