ETFC E TRADE Financial Corporation

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 21, 2016


E*TRADE Financial Corporation
(Exact name of registrant as specified in its charter)

(646) 521-4300
(Registrant’s telephone number, including area code)


Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

On January 21, 2016, the Company announced its fourth quarter and fiscal year earnings for 2015. A copy of the Company’s press release is attached hereto as Exhibit 99.1 and incorporated by reference herein.

The information furnished shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or incorporated by reference into any filing thereunder or under the Securities Act of 1933 unless expressly set forth by specific reference in such filing.

Additionally, the Company published an updated version of its investor presentation with data for the quarter ended December 31, 2015. The presentation is available on the Company’s corporate website, about.etrade.com .  

Investors should note that the Company announces material financial information in SEC filings, press releases and public conference calls. Based on guidance from the SEC, the Company may also use the Investor Relations section of its corporate website, about.etrade.com, to communicate with investors about the Company. It is possible that the financial and other information posted there could be deemed to be material information. The information on the Company’s corporate website is not part of this document.

 99.1     Earnings Press Release, dated January 21, 2016

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Exhibit 99.1

E*TRADE Financial Corporation Announces Fourth Quarter and Full Year 2015 Results

NEW YORK--(BUSINESS WIRE)--January 21, 2016--E*TRADE Financial Corporation (NASDAQ:ETFC):

Fourth Quarter Results

• Net income of $89 million, or $0.30 per diluted share
• Total net revenue of $454 million
• Allowance for loan losses of $353 million resulting in a benefit to provision for loan losses of $23 million
• Total operating expenses of $305 million, including a one-time charge to communications expense of $8 million and executive severance of $6 million
• Daily Average Revenue Trades (DARTs) of 147,000
• End of period margin receivables of $7.4 billion
• Net new brokerage accounts of 13,000 and an annualized attrition rate of 8.2 percent, excluding the impact of shutting down the Company’s global trading platform⁽¹⁾
• Net new brokerage assets of $2.8 billion; end of period total customer assets of $288 billion
• Utilized $50 million to repurchase 1.7 million shares at an average price of $30.10

Full Year 2015 Results

• Net income of $268 million, or $0.91 per diluted share
• Adjusted net income of $344 million⁽²⁾, or $1.17 per diluted share⁽²⁾, excluding charges related to the termination of wholesale funding obligations in the third quarter, an income tax benefit related to finalizing an IRS audit in the second quarter, and charges related to early extinguishment of corporate debt in the first quarter
• Total adjusted net revenue of $1.8 billion⁽²⁾, excluding $370 million of losses related to the termination of wholesale funding obligations
• Total operating expenses of $1.2 billion, including executive severance of $12 million, a $9 million charge related to a third party contract amendment, and an $8 million one-time charge to communications expense
• Benefit to provision for loan losses of $40 million
• DARTs of 155,000
• Net new brokerage accounts of 96,000 and an attrition rate of 8.9% excluding the impact of escheatment and shutting down the Company’s global trading platform⁽¹⁾
• Net new brokerage assets of $9.3 billion

E*TRADE Financial Corporation (NASDAQ:ETFC) today announced results for its fourth quarter ended December 31, 2015, reporting net income of $89 million, or $0.30 per diluted share. This compares to a net loss of $153 million, or $0.53 per diluted share, in the prior quarter, which includes pre-tax charges of $413 million related to the termination of wholesale funding obligations⁽²⁾. This also compares to net income of $41 million, or $0.14 per diluted share, in the fourth quarter of 2014, which includes a pre-tax loss of $59 million related to the early extinguishment of corporate debt⁽²⁾. Total net revenue was $454 million, compared to $73 million, or adjusted net revenue of $443 million⁽²⁾, in the prior quarter and $461 million in the fourth quarter of 2014. The fourth quarter also included an elevated tax rate of 43%, largely related to the impact of the prior quarter’s wholesale funding transaction on the full year pre-tax income and the associated impact on non-deductible items.

“Closing the chapter on 2015, E*TRADE is in a better position than it has ever been,” said Paul Idzik, Chief Executive Officer. “Completing much of the foundational work, we turned our focus to customer-facing enhancements – providing a series of new tools and revamped functionality across our site, active trading platform, and mobile apps. We also covered significant ground on the financial side of things – embarking upon four major capital deployment actions during the year. We reduced corporate debt to target levels, repositioned our balance sheet by eliminating costly wholesale funding, began growing assets to maximize returns, and launched a share repurchase program. The totality of our efforts and progress are emblematic of our vastly improved state as an institution, and were reflected in our improved regulatory standing and investment grade credit ratings. Entering 2016 from a position of strength, we are focused on continuing to deliver for our customers and owners, and seizing opportunities to grow our franchise and deploy capital for their benefit.”

E*TRADE reported DARTs of 147,000 during the quarter, a decrease of 6 percent from the prior quarter and 13 percent versus the same quarter a year ago. DARTs for the full year were 155,000, down from 168,000 in 2014.

The Company ended the quarter with 3.2 million brokerage accounts, an increase of 13,000⁽¹⁾ from the prior quarter. This compared to 19,000⁽¹⁾ net new brokerage accounts in the third quarter and 17,000 in the fourth quarter of 2014. For the full year, the Company added 96,000 net new brokerage accounts⁽¹⁾. Brokerage account attrition for the fourth quarter was 8.2 percent annualized⁽¹⁾. For the full year, attrition was 8.9⁽¹⁾ percent compared to 8.7 percent in 2014.

The Company ended the quarter with $288 billion in total customer assets, compared with $277 billion at the end of the prior quarter and $290 billion a year ago.

During the quarter, customers added $2.8 billion in net new brokerage assets. Brokerage related cash increased by $1.5 billion to $41.7 billion during the fourth quarter as customers were net sellers of approximately $0.3 billion of securities. Margin receivables averaged $7.5 billion in the quarter, down 6 percent from the prior quarter and down 5 percent year over year, ending the quarter at $7.4 billion.

Corporate cash ended the quarter at $447 million⁽³⁾, an increase of $15 million from the prior quarter, as a $50 million dividend from E*TRADE Securities was offset by the utilization of $50 million to repurchase shares.

Net operating interest income⁽⁴⁾ for the fourth quarter was $285 million, up from $263 million in the prior quarter and $279 million a year ago. Fourth quarter results reflected a net interest spread of 2.88 percent on average interest-earning assets of $39.4 billion, compared with 2.58 percent on $40.4 billion in the prior quarter and 2.69 percent on $40.9 billion in the fourth quarter of 2014.

Commissions, fees and service charges⁽⁴⁾, and other revenue in the fourth quarter were $160 million, compared to $170 million in the prior quarter and $176 million in the fourth quarter of 2014. Average commission per trade for the quarter was $10.66, down from $10.87 in the prior quarter and $10.84 in the fourth quarter of 2014. Total net revenue in the quarter also included $9 million of net gains on securities and other. This compared with $10 million in the prior quarter and $6 million in the fourth quarter of 2014.

Total operating expenses in the quarter of $305 million increased $12 million sequentially and $11 million from the year ago period. Communications expense included a one-time third party contract charge of $8 million, and restructuring expense included executive severance of $6 million.

The Company’s total assets ended the quarter at $45.4 billion, an increase of $4.2 billion from the prior quarter. The increase was driven primarily by the movement of $3.7 billion of customer assets held at third party institutions onto the Company's balance sheet during the quarter.

The Company’s loan portfolio ended the quarter at $5.0 billion, contracting approximately $0.3 billion from the prior quarter. Net charge-offs in the quarter were $0 compared with $1 million in the prior quarter and $7 million in the fourth quarter of 2014. The allowance for loan losses ended the quarter at $353 million, down from $376 million in the prior quarter and $404 million in the fourth quarter of 2014. The decrease in the allowance resulted in a benefit to provision for loan losses of $23 million, which compared with a benefit of $25 million in the previous quarter and a provision of $10 million in the fourth quarter of 2014.

As of December 31, 2015, the Company reported bank and consolidated Tier 1 leverage ratios of 9.7 percent⁽⁵⁾ and 9.0 percent⁽⁶⁾, compared with 9.2 percent⁽⁵⁾ and 8.5 percent⁽⁶⁾ in the previous quarter.

Historical metrics and financials can be found on the E*TRADE Financial corporate website at about.etrade.com.

The Company will host a conference call to discuss the results beginning at 5 p.m. ET today. This conference call will be available to domestic participants by dialing 800-682-8593 while international participants should dial +1 303-223-4395. A live audio webcast and replay of this conference call will also be available at about.etrade.com.

About E*TRADE Financial

E*TRADE Financial and its subsidiaries provide 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 (Member FINRA/SIPC). Bank products and services are offered by E*TRADE Bank, a Federal savings bank, Member FDIC, or its subsidiaries and affiliates. More information is available at www.etrade.com. ETFC-E

Important Notices

E*TRADE Financial, E*TRADE and the E*TRADE logo are trademarks or registered trademarks of E*TRADE Financial Corporation.

Forward-Looking Statements

The statements contained in this news release that are forward looking, including statements regarding continued growth in our business and the ability to drive value for our customers and owners are “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, and are subject to a number of uncertainties and risks. Actual results may differ materially from those indicated in the forward-looking statements. The uncertainties and risks include, but are not limited to, macro trends of the economy in general and the residential real estate market, market volatility, instability in the consumer credit markets and credit trends, increased mortgage loan delinquency and default rates, portfolio growth, portfolio seasoning and resolution through collections, sales or charge-offs, the uncertainty surrounding the foreclosure process, and the potential negative regulatory consequences resulting from the implementation of financial regulatory reform as well as from actions by or more restrictive policies or interpretations of the Federal Reserve and the Office of the Comptroller of the Currency or other regulators. Further information about these risks and uncertainties can be found in the annual, quarterly, and current reports on Form 10-K, Form 10-Q, and Form 8-K previously filed by E*TRADE Financial Corporation with the Securities and Exchange Commission (including information in these reports under the caption “Risk Factors”). Any forward-looking statement included in this release speaks only as of the date of this communication; the Company disclaims any obligation to update any information.

© 2016 E*TRADE Financial Corporation. All rights reserved.

Explanation of Non-GAAP Measures and Certain Metrics

Management believes that adjusting GAAP measures by excluding or including certain items is helpful to investors and analysts who may wish to use some or all of this information to analyze the Company’s current performance, prospects and valuation. Management uses this non-GAAP information internally to evaluate operating performance and in formulating the budget for future periods. Management believes that the non-GAAP measures and metrics discussed below are appropriate for evaluating the operating and liquidity performance of the Company.

Adjusted Net Revenue

Management believes that excluding the loss on termination of wholesale funding obligations from net revenue provides a useful additional measure of the Company’s ongoing operating performance because the charge is not directly related to our performance. See endnote (2) for a reconciliation of this non-GAAP measure to the comparable GAAP measure.

Adjusted Net Income and Adjusted EPS

Management believes that excluding the loss on termination of wholesale funding obligations, the income tax benefit related to finalizing an IRS audit, and the charge related to the early extinguishment of corporate debt from net income and EPS provides useful additional measures of the Company’s ongoing operating performance because the charges are not directly related to our performance. See endnote (2) for a reconciliation of these non-GAAP measures to the comparable GAAP measures.

Corporate Cash

Corporate cash represents cash held at the parent company as well as cash held in certain subsidiaries, not including bank and broker-dealer subsidiaries, that can distribute cash to the parent company without any regulatory approval or notification. The Company believes that corporate cash is a useful measure of the parent company’s liquidity as it is the primary source of capital above and beyond the capital deployed in regulated subsidiaries. See endnote (3) for a reconciliation of this non-GAAP measure to the comparable GAAP measure.

Tangible Book Value per Share

Tangible book value per share represents shareholders’ equity less goodwill (net of related deferred tax liability) and other intangible assets divided by common stock outstanding. The Company believes that tangible book value per share is a measure of the Company’s capital strength. See endnote (10) for a reconciliation of this non-GAAP measure to the comparable GAAP measure.

EBITDA

EBITDA represents net income (loss) before taxes, depreciation and amortization and corporate interest expense. Management believes that EBITDA provides a useful additional measure of the Company’s performance by excluding certain non-cash charges and expenses that are not directly related to the performance of the business. See the table entitled “Key Performance Metrics” for a reconciliation of this non-GAAP measure to the comparable GAAP measure.

Adjusted EBITDA

Adjusted EBITDA represents net income (loss) before taxes, depreciation and amortization, corporate interest expense, and the loss on termination of wholesale funding obligations. Management believes that adjusted EBITDA provides a useful additional measure of the Company’s performance by excluding certain non-cash charges and expenses, including the loss on termination of wholesale funding obligations, that are not directly related to the performance of the business. See the table entitled “Key Performance Metrics” for a reconciliation of these non-GAAP measures to the comparable GAAP measure.

EBITDA Interest Coverage and Adjusted EBITDA Interest Coverage

EBITDA interest coverage represents EBITDA divided by corporate interest expense. Adjusted EBITDA interest coverage represents adjusted EBITDA divided by corporate interest expense. Management believes that by excluding the charges and expenses that are excluded from EBITDA and adjusted EBITDA, EBITDA interest coverage and adjusted EBITDA interest coverage provide a useful additional measure of the Company’s ability to continue to meet interest obligations and liquidity needs. See endnote (12) for a calculation of this non-GAAP measure on a GAAP basis.

E*TRADE Bank Tier 1 Common Ratio and E*TRADE Financial Capital Ratios

Prior to Basel III becoming effective for the Company on January 1, 2015, E*TRADE Financial capital ratios, including Tier 1 leverage, Tier 1 risk-based capital and total risk-based capital ratios, were based on the Federal Reserve regulatory minimum well-capitalized threshold then applicable to bank holding companies. E*TRADE Bank’s and E*TRADE Financial’s Tier 1 common ratios were defined as the Tier 1 capital less elements of Tier 1 capital that are not in the form of common equity, such as trust preferred securities, divided by total risk-weighted assets. Management believes these capital ratios are an important measure of E*TRADE Bank’s and E*TRADE Financial’s capital strength. See endnotes (5) and (6) for reconciliations of these non-GAAP measures to the comparable GAAP measures.

It is important to note these metrics and other non-GAAP measures may involve judgment by management and should be considered in addition to, not as substitutes for, or superior to, net income, consolidated statements of cash flows, or other measures of financial performance prepared in accordance with GAAP. For additional information on the adjustments to these non-GAAP measures, please see the Company’s financial statements and “Management’s Discussion and Analysis of Results of Operations and Financial Condition” that will be included in the periodic report the Company expects to file with the SEC with respect to the financial periods discussed herein.

ENDNOTES

(1) Net new brokerage accounts and end of period brokerage accounts were impacted by the closure of 3,007 and 16,818 accounts related to the shutdown of the Company’s global trading platform in the fourth and third quarters of 2015, respectively. For the full year 2015, net new and end of period brokerage accounts were impacted by the closure of 23,150 accounts related to the shutdown of the Company's global trading platform and the closure of 3,484 accounts related to the escheatment of unclaimed property.

(2) The following table provides a reconciliation of net revenue, net income and EPS after adjusting for the loss on termination of wholesale funding obligations in the third quarter 2015 and charges related to the early extinguishment of corporate debt in the fourth quarter 2014 to GAAP net revenue, net income and EPS (dollars in millions, except for per share amounts):

(a) Total net revenue of $73 million for the third quarter of 2015 includes a $370 million loss related to the termination of wholesale funding obligations. Excluding this loss, adjusted net revenue would have been $443 million.

(b) Adjusted net income per share for the third quarter 2015 is calculated based on 295,148 diluted shares (in thousands).

The following table provides a reconciliation of net revenue, net income and EPS for the full year after adjusting for the loss on termination of wholesale funding obligations in the third quarter 2015, the income tax benefit related to finalizing an IRS audit in the second quarter 2015, and the charges related to the early extinguishment of corporate debt in the first quarter 2015 and fourth quarter 2014, respectively, to GAAP net revenue, net income and EPS (dollars in millions, except for per share amounts):

(a) Total net revenue of $1.4 billion for the full year 2015 includes a $370 million loss related to the termination of wholesale funding obligations. Excluding this loss, adjusted net revenue would have been $1.8 billion.

(3) The following table provides a reconciliation of GAAP consolidated cash and equivalents to corporate cash at period end (dollars in millions):

(a) U.S. broker-dealers' cash include E*TRADE Securities and E*TRADE Clearing. Prior to the move of E*TRADE Securities and E*TRADE Clearing out from under E*TRADE Bank in the first and third quarters of 2015, respectively, related cash was included in the “Bank cash” line item.

(4) Beginning in the first quarter of 2015, the Company reclassified the revenue earned on customer assets held by third parties from operating interest income to fees and service charges. In the fourth quarter of 2015, the Company updated the presentation of its consolidated balance sheet line items as follows:

• Reclassified certain receivables from other assets to receivables from brokers, dealers, and clearing organizations;
• Reclassified its investment in FHLB stock to other assets;
• Reclassified its net deferred tax assets from other assets to deferred tax assets, net;
• Reclassified certain payables from other liabilities to payables to the brokers, dealers, and clearing organizations;
• Renamed FHLB advances and other borrowings to other borrowings; and
• Reclassified securities sold under agreements to repurchase to other borrowings.

Prior periods have been reclassified to conform to the current period presentation.

(5) E*TRADE Bank’s Tier 1 leverage, Tier 1 risk-based capital, total risk-based capital and Common Equity Tier 1 ratios are preliminary for the current period. Prior to Basel III becoming effective for E*TRADE Bank on January 1, 2015, E*TRADE Bank’s Tier 1 common ratio was a non-GAAP measure that management believes is an important measure of capital strength. E*TRADE Bank’s capital ratios are calculated as follows (dollars in millions):

(a) Amounts presented for E*TRADE Bank exclude E*TRADE Securities as of February 1, 2015 and E*TRADE Clearing as of July 1, 2015.

(b) Common Equity Tier 1 capital under Basel III replaced Tier 1 common capital. Prior to Basel III becoming effective, E*TRADE Bank’s Tier 1 common ratio was 25.7% as of December 31, 2014.

(c) As of December 31, 2015 and September 30, 2015, E*TRADE Bank’s Tier 1 Leverage ratio was calculated using average total assets. Prior to Basel III becoming effective for E*TRADE Bank, E*TRADE Bank’s Tier 1 Leverage ratio was calculated using end of period total assets.

(d) Under the regulatory guidelines for risk-based capital, on-balance sheet assets and credit equivalent amounts of derivatives and off-balance sheet items are assigned to one of several broad risk categories according to the obligor or, if relevant, the guarantor or the nature of any collateral. The aggregate dollar amount in each risk category is then multiplied by the risk weight associated with that category. The resulting weighted values from each of the risk categories are aggregated for determining total risk-weighted assets.

(6) E*TRADE Financial’s Tier 1 leverage, Tier 1 risk-based capital, total risk-based capital and Common Equity Tier 1 ratios are preliminary for the current period. Prior to Basel III becoming effective for E*TRADE Financial on January 1, 2015, E*TRADE Financial’s capital ratios were non-GAAP measures and based on the Federal Reserve’s well-capitalized requirements as management believes these ratios are an important measure of the Company's capital strength and managed capital against ratios then applicable to bank holding companies in preparation for the application of these requirements. E*TRADE Financial’s capital ratios are calculated as follows (dollars in millions):

(a) As a result of applying the transition provisions under Basel III, the Company included 25% of the TRUPs in the calculation of E*TRADE Financial’s Tier 1 capital and 75% of the TRUPs in the calculation of E*TRADE Financial’s total capital. Prior to Basel III becoming effective for E*TRADE Financial, the Company included 100% of the TRUPs in E*TRADE Financial’s Tier 1 capital due to the regulatory agencies’ delay in the implementation of the TRUPs phase-out until January 1, 2015.

(b) Common Equity Tier 1 capital under Basel III replaced Tier 1 common capital. E*TRADE Financial’s Tier 1 common ratio was 17.1% as of December 31, 2014.

(c) Under the regulatory guidelines for risk-based capital, on-balance sheet assets and credit equivalent amounts of derivatives and off-balance sheet items are assigned to one of several broad risk categories according to the obligor or, if relevant, the guarantor or the nature of any collateral. The aggregate dollar amount in each risk category is then multiplied by the risk weight associated with that category. The resulting weighted values from each of the risk categories are aggregated for determining total risk-weighted assets.

(7) Reflects elimination of transactions between Trading and Investing and Balance Sheet Management segments, which includes deposit and intercompany transfer pricing arrangements.

(8) Amounts and percentages may not calculate due to rounding.

(9) Operating margin is the percentage of net revenue that results in income before other income (expense) and income taxes. The percentage is calculated by dividing income before other income (expense) and income taxes by total net revenue.

(10) The following tables provide a reconciliation of GAAP book value and book value per share to non-GAAP tangible book value and tangible book value per share at period end (dollars in millions, except per share amounts):

(11) 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.

(12) The interest coverage ratio calculated based on the Company’s net income to its corporate interest expense was 5.9, (10.9), and 1.5 for the three months ended December 31, 2015, September 30, 2015, and December 31, 2014, respectively. The adjusted interest coverage ratio calculated based on the Company’s adjusted net income to its corporate interest expense was 5.9, 7.0, and 2.9 for the three months ended December 31, 2015, September 30, 2015, and December 31, 2014, respectively.

(13) E*TRADE Bank net income is calculated as follows (dollars in millions):

(14) The brokerage account attrition rate is calculated by dividing attriting brokerage accounts, which are gross new brokerage accounts less net new brokerage accounts, by total brokerage accounts at the previous period end. This rate is presented on an annualized basis.

(15) Customer assets held by third parties are held outside E*TRADE Financial and include money market funds and sweep deposit accounts at unaffiliated financial institutions. Customer assets held by third parties are not reflected in the Company’s consolidated balance sheet and are not immediately available for liquidity purposes. We transferred $3.7 billion of money market funds and sweep deposits back onto our balance sheet during the fourth quarter 2015. The following table provides details of customer assets held by third parties (dollars in billions):

(16) 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.

(17) 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. The following table shows the total amount of charge-offs on loans that are still held by the Company at the end of the periods presented (dollars in millions):

(18) Includes unpaid principal balances and premiums (discounts).

(19) The TDR loan performance detail is a subset of the Company’s total loan performance. TDRs include loan modifications performed under the Company’s modification programs and loans that have been charged-off due to bankruptcy notification.

(20) Beginning on January 1, 2015, regulatory capital for E*TRADE Bank and E*TRADE Financial was calculated under the Basel III Standardized Approach, subject to transition provisions.

(21) Modifications are a subset of TDRs, and represent loan modifications performed under the Company’s modification programs. They do not include loans that have been charged-off due to the Company receiving notification of bankruptcy if the loan has not been modified previously by the Company. The following table shows the reconciliation of total TDRs that had a modification and those for which the Company received a notification of bankruptcy (dollars in millions):

(22) The total expected losses on modifications includes both the previously recorded charge-offs and the specific valuation allowance.

(23) Includes loans held-for-sale and excludes loans to customers on margin.

CONTACT:
E*TRADE Media Relations
Thayer Fox, 646-521-4418
thayer.fox@etrade.com
or
E*TRADE Investor Relations
Brett Goodman, 646-521-4406
brett.goodman@etrade.com