E*TRADE Reports Q4 EPS of $(0.11) vs. $.04

E*TRADE Financial Corporation ETFC today announced results for its fourth quarter ended December 31, 2010, reporting a net loss of $24 million, or $0.11 loss per share, compared with net income of $8 million, or $0.03 income per share, in the prior quarter and a net loss of $67 million, or $0.36 loss per share, in the fourth quarter of 2009. The fourth quarter results include an increase to the qualitative component of the loan loss reserve of approximately $60 million which the company does not expect to recur as it does not expect to increase the reserve percentage in future periods. For the year ended December 31, 2010, the company reported a net loss of $28 million, or $0.13 loss per share, compared to a net loss of $1.3 billion, or $11.85 loss per share, a year ago. The year ended December 31, 2009 included a $968 million pre-tax non-cash charge for corporate debt extinguished in relation to the company's $1.74 billion debt exchange, which had an after-tax impact of approximately $773 million, or $7.06 loss per share(1). Excluding the impact of this item, the company reported a net loss of $525 million, or $4.79 loss per share for the year ended December 31, 2009(1).