ETRADE Bank is a subsidiary of ETRADE Financial Group, which is a publicly traded (NASDAQ:ETFC) institution, and offers a narrow selection of depository products and loans. The bank offers an Internet-driven approach to depository banking, but also has retail centers in metropolitan areas across the United States. The ETRADE name is widely known as an active stock and bond trading platform accessible to everyday consumers and investors, and therefore positions its checking account offering as a tool to use moving funds back and forth to trading accounts. The bank offers free quick money transfers between accounts to facilitate this operation.
There are no savings, money market, or CD accounts offered by the bank, but on its lending side there is access to mortgage and refinance loans. The sole checking account offer could also be used by itself as a way for consumers to conveniently bank online. It comes with a free Visa debit card, free Bill Pay services, and free ATM refunds on any ATM used to withdrawal money from the account. There is no monthly service fee on this checking account as long as customers obey minimum account balance requirements, which tend to be higher than average.
ETRADE Bank online banking offers consumers a sophisticated platform on which customers can manage their accounts. Free fund transfers, bill pay, account management, and access to investing opportunities are all features of the bank’s web-based system. ETRADE also gives complete protection guarantee that prevents customers from being financially responsible for any unauthorized use of their accounts. ETRADE’s mobile banking apps offer comprehensive features unlike many other apps in the banking world. Barcode scanning allows investors to instantly turn their material receipts into company research; educational videos, including CNBC video on demand, are available for learning purposes; performance charts offer investors tangible metrics right on their smartphones. In addition to these trading functions, the mobile apps offer easy account management, Bill Pay, and fund transfers for banking customers.
ETRADE Bank was originally established in 1933 as the Metropolitan Federal Savings and Loan Association. In 1989 it changed its organization type to a stock savings bank and changed its name to the Metropolitan Bank for Savings. In 2001 the bank changed its name for the last time to ETRADE. Its headquarters are in Arlington, Virginia, where it was originally established.
E-trade is convenient. However, I am unhappy with the low interest rates on the savings. As with many other banks the annual rate is very low. I have found better luck with a credit union lately. Another item that I was unhappy with is I would get inactive account notices on my kids savings about every 6 months. I was not making a lot of transactions on these accounts and I kept having to add some funds every so often to keep them from closing the account without authorization from me. I am since planning on changing banks because this was just too irritating. I clearly had an active account because I have all my accounts under the same log-in the on-line information on a regular basis.
The Texas Ratio is an indicator of how much funds a bank has available compared to the total value of loans considered at risk. As of December 31, 2013 E*TRADE Bank had $756.89 million in non-current loans and owned real-estate with $6.19 billion in equity and loan loss allowances on hand to cover it. This gives E*TRADE Bank a Texas Ratio of 12.22% which is above average. Any bank with a Texas Ratio near or greater than 100% is considered at risk.
The Texas Ratio for E*TRADE Bank decreased slightly from 15.61% as of December 31, 2012 to 12.22% as of December 31, 2013, resulting in a positive change of 21.71%.This indicates that the balance sheet and financial strength for E*TRADE Bank has improved slightly in recent periods.
In the past year, E*TRADE Bank has decreased its total deposits by -$819.09 million, resulting in -2.42% growth for the year. A strong track record of growth is an indicator of consumer confidence and the bank's ability to strengthen its balance sheet. The growth E*TRADE Bank has shown is average.
Both FDIC and NCUA consider capitalization levels of banks and credit unions to be of high importance. Higher capitalization allows for a greater buffer when cover loans that may fail in the future. E*TRADE Bank has $45.08 billion in assets with $6.19 billion in equity, resulting in a capitalization level of 13.74%, which is excellent.
|FDIC Certificate #||30746|
|Assets and Liabilities|
|Equity Capital||$5.74 billion|
|Loan Loss Allowance||$452.96 million|
|Unbacked Noncurrent Loans||$707.02 million|
|Real Estate Owned||$49.88 million|
|Historic Data - December 2012|
|Equity Capital||$5.70 billion|
|Loan Loss Allowance||$480.75 million|
|Unbacked Noncurrent Loans||$707.02 million|
|Real Estate Owned||$65.28 million|
|Profit Margin - Quarterly|
|Net Interest Margin||2.43%|
|Return on Assets||0.77%|
|Return on Equity||5.97%|
|Interest Income||$1.21 billion|
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