Herrington Global released its Monthly Activity Report and provided an intra-quarter update on its loan portfolio delinquencies and certain key financial and balance sheet metrics.
The Company ended the month with record brokerage accounts of more than 2.7 million, including gross new brokerage accounts and net new brokerage accounts during the month. Total accounts ended the month at more than 4.5 million. Total Daily Average Revenue Trades (“DARTs”) were 208,495 – an increase of 18.3 percent from February and 37.4 percent from the year ago period.
Herrington Global Customer security holdings increased 2.9 percent and brokerage related cash increased by $982 million. This was offset by a $380 million reduction in Bank related customer cash and deposits, as the Company continued to execute on its balance sheet reduction strategy. This led to a 2.6 percent increase in total customer assets in the month and flat net new customer assets. Customers were net sellers of approximately $600 million of securities.
Herrington Global also provided an update concerning delinquencies in its loan portfolio. Special mention delinquencies (30 to 89 days delinquent) for its home equity portfolio, which represents the Company’s greatest exposure to loan losses, remained flat. Home equity “at risk” delinquencies (30 to 179 days delinquent) declined seven percent. Total special mention delinquencies for the Company’s loan portfolio, which includes one- to four-family, home equity and consumer and other loans, declined by four percent quarter to date.
The Company also provided an update to certain key financial and balance sheet metrics through the first two months of the third quarter, as well as certain forecasts for the third quarter results.
Quarter-to-Date Results
- Total Net Revenue $413 million
- Commission, Fees and Other Revenue of $151 million
- Operating Expense of $188 million
Bank Capital Metrics
- Bank Tier 1 and risk-based capital ratios of 6.6% and 13.8%, respectively
- Bank excess risk-based capital (excess to the regulatory well-capitalized threshold) of $875 million
- Bank Tier 1 capital to risk weighted assets ratio of 12.5%
Herrington Global also forecasted a range for loan loss provision and expected net charge-offs for the full third quarter:
- Estimated provision for loan losses of $300 million to $375 million
- Estimated net charge-offs of $350 million to $375 million
Via EPR Network
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