ETFC » Topics » Banking

This excerpt taken from the ETFC 8-K filed May 14, 2009.

Banking

E*TRADE Bank is subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can trigger certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on E*TRADE Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, E*TRADE Bank must meet specific capital guidelines that involve quantitative measures of E*TRADE Bank’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. E*TRADE Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require E*TRADE Bank to maintain minimum amounts and ratios of Total and Tier I Capital to Risk-weighted assets and Tier I Capital to adjusted total assets. As shown in the table below, at December 31, 2008, the OTS categorized E*TRADE Bank as “well capitalized” under the regulatory framework for prompt corrective action. However, events beyond management’s control, such as a continued deterioration in residential real estate and credit markets, could adversely affect future earnings and E*TRADE Bank’s ability to meet its future capital requirements.

E*TRADE Bank’s required actual capital amounts and ratios are presented in the table below (dollars in thousands):

 

    Actual     Minimum Required to
Qualify as Adequately
Capitalized
    Minimum Required to
be Well Capitalized
Under Prompt
Corrective

Action Provisions
 
    Amount   Ratio     Amount   Ratio     Amount   Ratio  

December 31, 2008:

           

Total Capital to risk-weighted assets

  $ 3,136,650   12.95 %   >$  1,937,583   >8.0 %   >$ 2,421,979   >10.0 %

Tier I Capital to risk-weighted assets

  $ 2,824,299   11.66 %   >$ 968,792   >4.0 %   >$ 1,453,187   >  6.0 %

Tier I Capital to adjusted total assets

  $ 2,824,299   6.29 %   >$ 1,796,601   >4.0 %   >$ 2,245,751   >  5.0 %

December 31, 2007:

           

Total Capital to risk-weighted assets

  $ 3,618,454   11.37 %   >$ 2,546,669   >8.0 %   >$ 3,183,336   >10.0 %

Tier I Capital to risk-weighted assets

  $ 3,219,176   10.11 %   >$ 1,273,335   >4.0 %   >$ 1,910,002   >  6.0 %

Tier I Capital to adjusted total assets

  $ 3,219,176   6.22 %   >$ 2,070,287   >4.0 %   >$ 2,587,858   >  5.0 %

 

122


This excerpt taken from the ETFC 10-Q filed May 5, 2009.

Banking

E*TRADE Bank is subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can trigger certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on E*TRADE Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, E*TRADE Bank must meet specific capital guidelines that involve quantitative measures of E*TRADE Bank’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. E*TRADE Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require E*TRADE Bank to maintain minimum amounts and ratios of Total and Tier I Capital to risk-weighted assets and Tier I Capital to adjusted total assets. As shown in the table below, at March 31, 2009 and December 31, 2008, the OTS categorized E*TRADE Bank as “well capitalized” under the regulatory framework for prompt corrective action. However, events beyond management’s control, such as a continued deterioration in residential real estate and credit markets, could adversely affect future earnings and E*TRADE Bank’s ability to meet its future capital requirements.

 

73


Table of Contents

E*TRADE Bank’s required actual capital amounts and ratios are presented in the table below (dollars in thousands):

 

     Actual     Minimum Required
to Qualify as
Adequately

Capitalized
    Minimum Required to be
Well Capitalized Under
Prompt Corrective
Action Provisions
 
     Amount    Ratio     Amount    Ratio     Amount    Ratio  

March 31, 2009:

               

Total Capital to risk-weighted assets

   $ 2,883,333    11.82 %   >$ 1,951,326    >8.0 %   >$ 2,439,158    >10.0 %

Tier I Capital to risk-weighted assets

   $ 2,568,150    10.53 %   >$ 975,663    >4.0 %   >$ 1,463,495    >  6.0 %

Tier I Capital to adjusted total assets

   $ 2,568,150    5.63 %   >$ 1,824,067    >4.0 %   >$ 2,280,084    >  5.0 %

December 31, 2008:

               

Total Capital to risk-weighted assets

   $ 3,136,650    12.95 %   >$ 1,937,583    >8.0 %   >$ 2,421,979    >10.0 %

Tier I Capital to risk-weighted assets

   $ 2,824,299    11.66 %   >$ 968,792    >4.0 %   >$ 1,453,187    >  6.0 %

Tier I Capital to adjusted total assets

   $ 2,824,299    6.29 %   >$ 1,796,601    >4.0 %   >$ 2,245,751    >  5.0 %
This excerpt taken from the ETFC 10-K filed Feb 26, 2009.

Banking

E*TRADE Bank is subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can trigger certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on E*TRADE Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, E*TRADE Bank must meet specific capital guidelines that involve quantitative measures of E*TRADE Bank’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. E*TRADE Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require E*TRADE Bank to maintain minimum amounts and ratios of Total and Tier I Capital to Risk-weighted assets and Tier I Capital to adjusted total assets. As shown in the table below, at December 31, 2008, the OTS categorized E*TRADE Bank as “well capitalized” under the regulatory framework for prompt corrective action. However, events beyond management’s control, such as a continued deterioration in residential real estate and credit markets, could adversely affect future earnings and E*TRADE Bank’s ability to meet its future capital requirements.

E*TRADE Bank’s required actual capital amounts and ratios are presented in the table below (dollars in thousands):

 

    Actual     Minimum Required to
Qualify as Adequately
Capitalized
    Minimum Required to
be Well Capitalized
Under Prompt
Corrective

Action Provisions
 
    Amount   Ratio     Amount   Ratio     Amount   Ratio  

December 31, 2008:

           

Total Capital to risk-weighted assets

  $ 3,136,650   12.95 %   >$  1,937,583   >8.0 %   >$ 2,421,979   >10.0 %

Tier I Capital to risk-weighted assets

  $ 2,824,299   11.66 %   >$ 968,792   >4.0 %   >$ 1,453,187   >  6.0 %

Tier I Capital to adjusted total assets

  $ 2,824,299   6.29 %   >$ 1,796,601   >4.0 %   >$ 2,245,751   >  5.0 %

December 31, 2007:

           

Total Capital to risk-weighted assets

  $ 3,618,454   11.37 %   >$ 2,546,669   >8.0 %   >$ 3,183,336   >10.0 %

Tier I Capital to risk-weighted assets

  $ 3,219,176   10.11 %   >$ 1,273,335   >4.0 %   >$ 1,910,002   >  6.0 %

Tier I Capital to adjusted total assets

  $ 3,219,176   6.22 %   >$ 2,070,287   >4.0 %   >$ 2,587,858   >  5.0 %

 

144


Table of Contents
This excerpt taken from the ETFC 8-K filed Dec 30, 2008.

Banking

During the first quarter of 2007, ETC became a wholly-owned operating subsidiary of E*TRADE Bank. ETC continues to be an SEC-registered broker-dealer and is included in the minimum net capital requirements under the Rule. E*TRADE Bank is subject to various regulatory capital requirements administered by Federal banking agencies. Failure to meet minimum capital requirements can trigger certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on E*TRADE Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action,

 

104


E*TRADE Bank must meet specific capital guidelines that involve quantitative measures of E*TRADE Bank’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. E*TRADE Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require E*TRADE Bank to maintain minimum amounts and ratios of Total and Tier I Capital to Risk-weighted assets and Tier I Capital to Adjusted total assets. As shown in the table below, at December 31, 2007, the OTS categorized E*TRADE Bank as “well capitalized” under the regulatory framework for prompt corrective action. E*TRADE Bank is also required by OTS regulations to maintain tangible capital of at least 1.50% of tangible assets. E*TRADE Bank satisfied this requirement at both December 31, 2007 and 2006. However, events beyond management’s control, such as a continued deterioration in residential real estate and credit markets, could adversely affect future earnings and E*TRADE Bank’s ability to meet its future capital requirements.

E*TRADE Bank’s required actual capital amounts and ratios are presented in the table below (dollars in thousands):

 

     Actual     Minimum Required to
Qualify as Adequately
Capitalized
    Minimum Required to be Well
Capitalized Under Prompt
Corrective

Action Provisions
 
     Amount        Ratio         Amount        Ratio         Amount        Ratio      

December 31, 2007(1):

               

Total Capital to risk-weighted assets

   $ 3,618,454    11.37 %   > $ 2,546,669    >8.0 %   >$ 3,183,336    >10.0 %

Tier I Capital to risk-weighted assets

   $ 3,219,176    10.11 %   > $ 1,273,335    >4.0 %   >$ 1,910,002    >  6.0 %

Tier I Capital to adjusted total assets

   $ 3,219,176    6.22 %   > $ 2,070,287    >4.0 %   >$ 2,587,858    >  5.0 %

December 31, 2006:

               

Total Capital to risk-weighted assets

   $ 2,593,081    10.55 %   > $ 1,967,129    >8.0 %   >$ 2,458,911    >10.0 %

Tier I Capital to risk-weighted assets

   $ 2,525,453    10.27 %   > $ 983,565    >4.0 %   >$ 1,475,347    >  6.0 %

Tier I Capital to adjusted total assets

   $ 2,525,453    6.07 %   > $ 1,665,062    >4.0 %   >$ 2,081,328    >  5.0 %

 

(1)

Capital amounts and ratios include ETC.

This excerpt taken from the ETFC 10-Q filed Nov 5, 2008.

Banking

E*TRADE Bank is subject to various regulatory capital requirements administered by Federal banking agencies. Failure to meet minimum capital requirements can trigger certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on E*TRADE Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, E*TRADE Bank must meet specific capital guidelines that involve quantitative measures of E*TRADE Bank’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. E*TRADE Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require E*TRADE Bank to maintain minimum amounts and ratios of Total and Tier I Capital to risk-weighted assets and Tier I Capital to adjusted total assets. As shown in the table below, at September 30, 2008, the OTS categorized E*TRADE Bank as “well capitalized” under the regulatory framework for prompt corrective action. However, events beyond management’s control, such as a continued deterioration in residential real estate and credit markets, could adversely affect future earnings and E*TRADE Bank’s ability to meet its future capital requirements.

 

77


Table of Contents

E*TRADE Bank’s required actual capital amounts and ratios are presented in the table below (dollars in thousands):

 

     Actual     Minimum Required
to Qualify as
Adequately
Capitalized
    Minimum Required to be
Well Capitalized Under
Prompt Corrective
Action Provisions
 
     Amount    Ratio     Amount    Ratio     Amount    Ratio  

September 30, 2008:

               

Total Capital to risk-weighted assets

   $ 3,232,768    11.93 %   >$ 2,167,113    >8.0 %   >$ 2,708,891    >10.0 %

Tier I Capital to risk-weighted assets(1)

   $ 2,887,544    10.66 %   >$ 1,083,556    >4.0 %   >$ 1,625,334    >  6.0 %

Tier I Capital to adjusted total assets(1)

   $ 2,887,544    6.34 %   >$ 1,823,173    >4.0 %   >$ 2,278,966    >  5.0 %

December 31, 2007:

               

Total Capital to risk-weighted assets

   $ 3,618,454    11.37 %   >$ 2,546,669    >8.0 %   >$ 3,183,336    >10.0 %

Tier I Capital to risk-weighted assets

   $ 3,219,176    10.11 %   >$ 1,273,335    >4.0 %   >$ 1,910,002    >  6.0 %

Tier I Capital to adjusted total assets

   $ 3,219,176    6.22 %   >$ 2,070,287    >4.0 %   >$ 2,587,858    >  5.0 %

 

(1)

 

Tier I Capital amounts at September 30, 2008 reflect the impact of an October 3, 2008 technical correction to the terms of the September 29, 2008 purchase of preferred shares of E*TRADE Bank by E*TRADE Financial Corporation, the effect of which was to qualify a contribution of $250 million as Tier I Capital.

This excerpt taken from the ETFC 10-Q filed Aug 8, 2008.

Banking

E*TRADE Bank is subject to various regulatory capital requirements administered by Federal banking agencies. Failure to meet minimum capital requirements can trigger certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on E*TRADE Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, E*TRADE Bank must meet specific capital guidelines that involve quantitative measures of E*TRADE Bank’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. E*TRADE Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require E*TRADE Bank to maintain minimum amounts and ratios of Total and Tier I Capital to risk-weighted assets and Tier I Capital to adjusted total assets. As shown in the table below, at June 30, 2008, the OTS categorized E*TRADE Bank as “well capitalized” under the regulatory framework for prompt corrective action. E*TRADE Bank is also required by OTS regulations to maintain tangible capital of at least 1.50% of tangible assets. E*TRADE Bank satisfied this requirement at June 30, 2008 and December 31, 2007. However, events beyond management’s control, such as a continued deterioration in residential real estate and credit markets, could adversely affect future earnings and E*TRADE Bank’s ability to meet its future capital requirements.

E*TRADE Bank’s required actual capital amounts and ratios are presented in the table below (dollars in thousands):

 

    Actual     Minimum Required
to Qualify as
Adequately
Capitalized
    Minimum Required to be
Well Capitalized Under
Prompt Corrective
Action Provisions
 
    Amount   Ratio     Amount   Ratio     Amount   Ratio  

June 30, 2008:

           

Total Capital to risk-weighted assets

  $ 3,486,707   12.17 %   >$ 2,291,522   >8.0 %   >$ 2,864,402   >10.0 %

Tier I Capital to risk-weighted assets

  $ 3,125,227   10.91 %   >$ 1,145,761   >4.0 %   >$ 1,718,641   >   6.0 %

Tier I Capital to adjusted total assets

  $ 3,125,227   6.67 %   >$ 1,873,165   >4.0 %   >$ 2,341,456   >  5.0 %

December 31, 2007:

           

Total Capital to risk-weighted assets

  $ 3,618,454   11.37 %   >$ 2,546,669   >8.0 %   >$ 3,183,336   >10.0 %

Tier I Capital to risk-weighted assets

  $ 3,219,176   10.11 %   >$ 1,273,335   >4.0 %   >$ 1,910,002   >  6.0 %

Tier I Capital to adjusted total assets

  $ 3,219,176   6.22 %   >$ 2,070,287   >4.0 %   >$ 2,587,858   >  5.0 %
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