E*TRADE Bank (merged into Morgan Stanley Private Bank)

FDIC-insured bank with its head office in Arlington, Virginia, established in 1933 according to the FDIC.
Merged. E*TRADE Bank merged into Morgan Stanley Private Bank on (FDIC: affiliated institution merger (pooling) (i.e. corporate reorganization). Its data ends with the Call Report for ; figures on this page are from that report or earlier.

E*TRADE Bank reported total assets of $79.1 bn at Q4 2021, its last Call Report before it merged into Morgan Stanley Private Bank. The CET1 capital ratio at E*TRADE Bank was 50.28%, and the uninsured share of E*TRADE Bank was 17.51%. Source: FDIC Call Reports.

Key takeaways

  • Since , E*TRADE Bank has taken over one institution; the latest was E*TRADE Savings Bank on (FDIC Call Reports).
Total assets
$79.1 bn
A year earlier (Q4 2020): $62.8 bn
CET1 capital ratio
50.28%
A year earlier (Q4 2020): 41.76%
Return on equity
2.75%
A year earlier (Q4 2020): 0.67%
Uninsured share of deposits
17.51%
A year earlier (Q4 2020): 19.02%

What sets E*TRADE Bank apart

How large is E*TRADE Bank?

The balance sheet of E*TRADE Bank at : assets $79.1 bn, deposits $72.1 bn, net loans $25.9 bn (loans equal to 35.93% of deposits). Securities make up 60.3% of total assets at E*TRADE Bank. Since , when E*TRADE Bank held $35.7 bn, its assets grew 121.5%. In the year to , deposits at E*TRADE Bank rose 31.7% while its total assets rose 26.1%. At , E*TRADE Bank employed 9 full-time equivalent staff across 1 office, about $8.8 bn of assets per employee and $72.1 bn of deposits per office.

How much funding at E*TRADE Bank is uninsured?

At E*TRADE Bank, uninsured deposits (above the FDIC limit) made up 17.51% of domestic deposits at (-1.51 pp on a year earlier). In dollars, E*TRADE Bank estimated $12.6 bn of uninsured deposits.

Key facts, Q4 2021

MetricValueA year earlierUS rank
Total deposits$72.1 bn$54.7 bn (Q4 2020)
Net loans and leases$25.9 bn$1.7 bn (Q4 2020)
Loan-to-deposit ratio35.93%3.10% (Q4 2020)
Tier 1 leverage ratio8.00%7.61% (Q4 2020)
Total risk-based capital ratio50.28%41.76% (Q4 2020)
Net interest margin1.08%0.28% (Q4 2020)
Return on assets (ROA)0.24%0.05% (Q4 2020)
Efficiency ratio70.28%84.04% (Q4 2020)
Unrealized gain/loss on held-to-maturity securitiesLoss of $888.8 mnTurned from a gain into a loss
Unrealized gain/loss on available-for-sale securitiesLoss of $76.1 mnTurned from a gain into a loss
Noncurrent loans to total loans0.00%17.69% (Q4 2020)
Net charge-offs to average loans0.00%0.01% (Q4 2020)

US rank of E*TRADE Bank: 1 = highest unless marked 1 = lowest.

Balance sheet

E*TRADE Bank: assets, deposits and loans

USD bn
Total assets, deposits and net loans of E*TRADE Bank each quarter; total assets were $79.1 bn at Q4 2021-$3.1bn$18.8bn$40.7bn$62.6bn$84.5bn20172018201920202021Total assets$79.1bnDeposits$72.1bnNet loans$25.9bnTotal assets, deposits and net loans of E*TRADE Bank each quarter; total assets were $79.1 bn at Q4 2021-$3.1bn$26.1bn$55.3bn$84.5bn20182020
  • Total assets $79.1bn
  • Deposits $72.1bn
  • Net loans $25.9bn
to . FDIC Call Reports.

Capital and securities

The CET1 ratio of E*TRADE Bank stood at 50.28% in , +8.52 pp year on year. Low and high at E*TRADE Bank since : 33.30% () to 53.81% (). Equity capital of E*TRADE Bank at : $6.9 bn, or 8.7% of total assets. E*TRADE Bank also reported a total capital ratio of 50.28% for , and a tier 1 leverage ratio of 8.00%.

On held-to-maturity securities, E*TRADE Bank carried an unrealized loss of $888.8 mn at , equal to 12.9% of equity capital. The loss turned from a gain into a loss over the year. Its deepest point: $912.8 mn in . The available-for-sale portfolio of E*TRADE Bank showed an unrealized loss of $76.1 mn at ; the loss turned from a gain into a loss over the year.

E*TRADE Bank: capital ratios

Percent
CET1, total risk-based capital and tier 1 leverage ratios of E*TRADE Bank, Q1 2016 to Q4 20214.3%17%30%44%57%20172018201920202021Total capital50%CET150%Tier 1 leverage8.0%CET1, total risk-based capital and tier 1 leverage ratios of E*TRADE Bank, Q1 2016 to Q4 20214.3%22%39%57%20182020
  • Total capital 50%
  • CET1 50%
  • Tier 1 leverage 8.0%
to . FDIC Call Reports.

E*TRADE Bank: unrealized securities gains and losses

USD bn
Unrealized gains and losses on available-for-sale and held-to-maturity securities of E*TRADE Bank, Q1 2016 to Q4 2021-$1.1bn-$365mn$332mn$1.0bn$1.7bn20172018201920202021Available for sale-$76mnHeld to maturity-$889mnUnrealized gains and losses on available-for-sale and held-to-maturity securities of E*TRADE Bank, Q1 2016 to Q4 2021-$1.1bn-$133mn$797mn$1.7bn20182020
  • Available for sale -$76mn
  • Held to maturity -$889mn
to . FDIC Call Reports.

Profitability and loan quality

For the year to , E*TRADE Bank earned a return on equity of 2.75%; return on assets: 0.24%. Net interest margin at E*TRADE Bank: 1.08%, +0.80 pp in a year. E*TRADE Bank net income: $178.3 mn, up 578.4% year on year. The efficiency ratio of E*TRADE Bank was 70.28%: about 70 cents cost per revenue dollar, against 59 cents at the median peer.

At , noncurrent loans were 0.00% of total loans at E*TRADE Bank; net charge-offs: 0.00% of average loans. Gross loans and leases at E*TRADE Bank: $25.9 bn at , against $1.7 bn at .

E*TRADE Bank: profitability

Percent, annualized
Return on equity, net interest margin and return on assets of E*TRADE Bank, Q1 2016 to Q4 2021-1.0%3.8%8.7%14%18%20172018201920202021Return on equity2.8%Net interest margin1.1%Return on assets0.2%Return on equity, net interest margin and return on assets of E*TRADE Bank, Q1 2016 to Q4 2021-1.0%5.4%12%18%20182020
  • Return on equity 2.8%
  • Net interest margin 1.1%
  • Return on assets 0.2%
to . FDIC Call Reports.

Peer group of E*TRADE Bank

The peer group of E*TRADE Bank is the 6 banks nearest to it by total assets at : 3 larger and 3 smaller. Of the peers, 1 shares the charter type of E*TRADE Bank (federal savings bank) and 0 have head offices in Virginia. Against them, E*TRADE Bank shows CET1 ratio 50.28% against a peer median of 12.61%, return on equity 2.75% against a peer median of 15.50% and uninsured deposit share 17.51% against a peer median of 55.73%.

BankCharterStateTotal assetsCET1 ratioReturn on equityUninsured share
Zions BancorporationNational bankUT$93.2 bn10.18%14.44%58.98%
First Horizon BankState member bankTN$88.8 bn10.75%12.96%52.55%
Synchrony BankFederal savings bankUT$86.1 bn16.94%35.21%11.87%
E*TRADE BankFederal savings bankVA$79.1 bn50.28%2.75%17.51%
People's United BankNational bankCT$64.5 bn12.93%8.22%48.07%
Banco Popular de Puerto RicoState member bankPR$64.2 bn17.64%19.31%58.92%
East West BankState member bankCA$60.8 bn12.28%16.56%67.03%

. FDIC Call Reports.

Last eight quarters

Two years at E*TRADE Bank, to : assets $50.3 bn to $79.1 bn, deposits $42.6 bn to $72.1 bn, equity $3.5 bn to $6.9 bn. Staff 124 to 9.

MetricQ1 2020Q2 2020Q3 2020Q4 2020Q1 2021Q2 2021Q3 2021Q4 2021
Total assets$50.3 bn$50.9 bn$51.6 bn$62.8 bn$79.8 bn$77.9 bn$77.7 bn$79.1 bn
Total deposits$42.6 bn$44.1 bn$45.6 bn$54.7 bn$72.6 bn$70.6 bn$70.4 bn$72.1 bn
Bank equity capital$3.5 bn$3.8 bn$3.9 bn$4.8 bn$6.9 bn$7.0 bn$6.9 bn$6.9 bn
CET1 ratio35.80%34.94%36.34%41.76%51.61%53.10%53.81%50.28%
Return on equity (ROE)11.05%11.20%11.05%0.67%9.27%5.63%3.46%2.75%
Uninsured share of domestic deposits16.07%16.91%19.05%19.02%15.80%15.53%16.65%17.51%
Full-time equivalent employees12412112212211410779
Number of offices11111111

FDIC Call Reports.

Mergers and acquisitions

The FDIC history of E*TRADE Bank, oldest first; figures before and after each event are not like for like.

  1. . Absorbed E*TRADE Savings Bank (FDIC certificate 58119).
  2. . Merged into Morgan Stanley Private Bank, National Association (FDIC certificate 34221).

Large one-quarter moves at E*TRADE Bank

  • Total assets at E*TRADE Bank changed by +27.1% in the quarter to 2021-03-31, with no FDIC structure event in that quarter.

Questions and identifiers

What were the total assets of E*TRADE Bank?

E*TRADE Bank reported $79.1 bn at in its Call Report.

Is E*TRADE Bank the same as its holding company?

No. This page covers E*TRADE Bank, FDIC certificate 30746; MORGAN STANLEY (as reported to the FDIC), its holding company, reports separately to the Federal Reserve.

Is E*TRADE Bank profitable?

E*TRADE Bank reported net income of $178.3 mn for the year to ; annualized return on equity: 2.75%. So yes: E*TRADE Bank made a profit over these months.

When is data for E*TRADE Bank next updated?

E*TRADE Bank no longer files Call Reports; its data ends at .

Where can I check the figures for E*TRADE Bank?

In the FDIC BankFind Suite record for certificate 30746, and in the Call Reports of E*TRADE Bank (RSSD ID 370271) at the FFIEC Central Data Repository.