Some CC notes from yahoo:
no profitability in 08
apparently they held a large position [over 300 million $$] in fanny mae which got clobbered for a big loss.
and this post has a nice summary:
ETFC Conference Call Summary 8 minutes ago
The Good:
--Total Net Revenue of $532 million.
-- Total Retail Customers increased 22,000 from the prior quarter, up 90,000 from the previous year.
-- Total Accounts increased 30,000 for the quarter and 196,000 from the previous year.
-- Target segment accounts increased 14,000 versus the prior quarter, up 4,000 from the previous year.
-- Total DARTs (customer trades) declined 5 percent quarter over quarter, but increased 7 percent over the year ago period.
--Undrawn home equity lines have been reduced from over $7 billion last year to approximately $3.7 billion as of the end of June (49% reduction).
--Total delinquencies increased by 9 percent or $111 million during the quarter, representing the slowest increase in four quarters.
--Home equity loan delinquencies increased by 4 percent or $25 million during the quarter, down from an increase of 8 percent in the prior quarter.
--At the end of the second quarter, excess risk-based Bank capital totaled approximately $620 million. The Company expects to have such excess capital at the Bank of approximately $700 - $800 million by year-end.
--Continued to effect debt-for-equity exchanges, extinguishing $96 million in debt in the second quarter and $121 million since the beginning of the year. These exchanges represent $9 million in annualized coupon savings and continue to serve as a shareholder friendly way to reduce the overhang of debt at the holding company.
The Bad:
-- $319 million in Provision for Loan Losses (net loss of $94.6 million or .19 cents a share for the quarter).
--Provision for loan losses increased by $85 million quarter over quarter, driven primarily by an increase in home equity-related charge-offs. Total allowance for loan losses increased to $636 million, as provision exceeded charge-offs by $70
million during the quarter. The Company increased its allowance for loan losses across all three categories of its loan portfolio.
--As previously disclosed, the Company has a long-standing investment in preferred equity of Fannie Mae and Freddie Mac. As of June 30, 2008, these positions had a market value of $330 million. Subsequent to the close of the second quarter, these securities experienced record price declines and volatility. Based upon concerns about continuing market instability and potential government-led plans that could materially further impact the value of the securities, the majority of them were liquidated during July with a resulting pre-tax loss of $83 million, which is net of hedges and will be reflected in the Company's third quarter results. As of Monday, July 21, 2008, the remaining position, approximately $150 million, had a third-quarter-to-date market-value loss of approximately $40 million. The Company's strong bias is to continue to reduce this remaining exposure, as ownership of such securities is no longer in line with the Company's strategic objectives.
--"While the current economic environment may impede our expectations to return to profitability from continuing operations this year, we are executing well on our Turnaround Plan and continue to make progress toward returning to profitability,"
stated Mr. Layton.
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