EX-99.1 4 tv516694_ex99-1.htm COMPOSITION OF THE TRUST PORTFOLIO

 

Exhibit 99.1

 

Balance Reductions

 

The accounts in the trust portfolio may have balance reductions granted for a number of reasons, including merchandise refunds, returns, and fraudulent charges. For the twelve months ended February 28, 2019, the average monthly balance reduction rate for the accounts in the trust portfolio attributable to such returns and fraud was 1.36%.

 

The following information regarding the trust portfolio is as of February 28, 2019:

 

•        total transferred receivables: $5,317,448,518;

 

•        principal receivables: $5,112,634,206;

 

•        finance charge receivables: $204,814,312; and

 

•        total number of accounts designated to the trust portfolio: 4,714,678.

 

As of February 28, 2019:

 

•        the accounts designated for the trust portfolio had an average total receivable balance of approximately $1,128 and an average credit limit of approximately $6,163;

 

•        for accounts designated for the trust portfolio, the percentage of the aggregate total receivable balance to the aggregate total credit limit was 18.3%; and

 

•        the average age of the accounts designated for the trust portfolio was approximately 59 months.

 

The following tables summarize the trust portfolio by various criteria as of February 28, 2019 for each of the program partners included in the trust portfolio.

 

Please note that numbers and percentages presented in the tables in this section may not sum to the totals presented due to rounding.

 

For purposes of the tables in this section:

 

•        Total Receivables Outstanding is the sum of principal receivables and finance charge receivables (which includes fee receivables) included in the trust portfolio in the period indicated.

 

•        Number of Accounts is the number of accounts included in the trust portfolio as of the date or in the period indicated.

 

   

 

Composition by Program Partner of the Trust Portfolio

 

Program Partner

Total Receivables Outstanding

Percentage of
Total Receivables Outstanding

Number
of Accounts

Percentage
of Number
of Accounts

Sam's Club DC $1,334,340,074 25.1% 917,361 19.5%
Lowe's PLCC 1,096,882,153 20.6% 1,088,313 23.1%
TJX DC 712,727,052 13.4% 954,410 20.2%
Old Navy DC1 555,362,702 10.4% 458,520 9.7%
Gap DC & Banana Republic DC1 517,074,226 9.7% 522,643 11.1%
PayPal DC 472,565,846 8.9% 279,005 5.9%
BP DC 296,673,990 5.6% 254,306 5.4%
JCPenney DC 264,317,059 5.0% 174,256 3.7%
Dick's Sporting Goods DC

67,505,415

1.3%

65,864

1.4%

Total

$5,317,448,518

100.0%

4,714,678

100.0%

_____________

1 Old Navy, Gap and Banana Republic are currently affiliated retailers. On February 28, 2019, Gap Inc. announced plans to separate Old Navy into an independent, unaffiliated company.

 

 

Composition by Account Balance Range of the Trust Portfolio

 

Account Balance Range

Total Receivables Outstanding

Percentage of
Total Receivables Outstanding

Number
of Accounts

Percentage
of Number
of Accounts

Credit Balance $    (6,114,028) -0.1% 64,320 1.4%
No Balance - 0.0% 1,549,678 32.9%
$0.01-$500.00 227,386,131 4.3% 1,248,776 26.5%
$500.01-$1,000.00 311,941,690 5.9% 428,535 9.1%
$1,000.01-$2,000.00 745,973,858 14.0% 506,238 10.7%
$2,000.01-$3,000.00 757,102,479 14.2% 307,791 6.5%
$3,000.01-$4,000.00 657,741,120 12.4% 189,216 4.0%
$4,000.01-$5,000.00 630,373,311 11.9% 140,487 3.0%
$5,000.01-$6,000.00 584,595,507 11.0% 106,535 2.3%
$6,000.01-$7,000.00 407,011,891 7.7% 62,927 1.3%
$7,000.01-$8,000.00 332,103,161 6.2% 44,427 0.9%
$8,000.01-$9,000.00 218,989,819 4.1% 25,871 0.5%
$9,000.01-$10,000.00 185,179,563 3.5% 19,515 0.4%
$10,000.01-$15,000.00 197,836,548 3.7% 17,059 0.4%
$15,000.01-$20,000.00 34,306,757 0.6% 2,028 0.0%
$20,000.01 or  more

33,020,709

0.6%

1,275

0.0%

Total

$5,317,448,518

100.0%

4,714,678

100.0%

 

   

 

Composition by Credit Limit Range of the Trust Portfolio

 

Credit Limit Range

Total Receivables Outstanding

Percentage
of Total Receivables Outstanding

Number of
Accounts

Percentage
of Number
of Accounts

$0.01-$500.00 $     20,281,629 0.4% 133,446 2.8%
$500.01-$1,000.00 50,912,055 1.0% 131,573 2.8%
$1,000.01-$2,000.00 275,906,431 5.2% 482,462 10.2%
$2,000.01-$3,000.00 409,137,888 7.7% 555,241 11.8%
$3,000.01-$4,000.00 379,131,835 7.1% 491,599 10.4%
$4,000.01-$5,000.00 495,814,307 9.3% 457,422 9.7%
$5,000.01-$6,000.00 614,327,153 11.6% 400,918 8.5%
$6,000.01-$7,000.00 420,247,358 7.9% 306,855 6.5%
$7,000.01-$8,000.00 642,573,323 12.1% 408,779 8.7%
$8,000.01-$9,000.00 364,323,312 6.9% 264,557 5.6%
$9,000.01-$10,000.00 752,051,326 14.1% 449,225 9.5%
$10,000.01-$20,000.00 795,716,024 15.0% 599,196 12.7%
$20,000.01 or more

97,025,878

1.8%

33,405

0.7%

Total

$5,317,448,518

100.0%

4,714,678

100.0%

 

 

Composition by Account Age Range of the Trust Portfolio

 

Account Age Range

Total Receivables Outstanding

Percentage of
Total Receivables Outstanding

Number
of Accounts

Percentage
of Number
of Accounts

Up to 6 Months $                      - 0.0% - 0.0%
6 Months to 12 Months - 0.0% - 0.0%
Over 12 Months to 24 Months 670,841,541 12.6% 809,323 17.2%
Over 24 Months to 36 Months 1,187,852,786 22.3% 975,521 20.7%
Over 36 Months to 48 Months 821,071,598 15.4% 698,938 14.8%
Over 48 Months to 60 Months 927,093,165 17.4% 729,608 15.5%
Over 60 Months to 72 Months 634,969,037 11.9% 513,033 10.9%
Over 72 Months to 84 Months 341,483,890 6.4% 308,812 6.6%
Over 84 Months to 96 Months 205,086,378 3.9% 182,276 3.9%
Over 96 Months to 108 Months 120,848,309 2.3% 98,186 2.1%
Over 108 Months to 120 Months 37,291,756 0.7% 44,092 0.9%
Over 120 Months

370,910,058

7.0%

354,889

7.5%

Total

$5,317,448,518

100.0%

4,714,678

100.0%

 

   

 

Except for the applicable states listed below, no state accounted for more than 5% of the number of accounts or 5% of the total receivables balances, as applicable, as of February 28, 2019 for each of the program partners included in the trust portfolio. Since the largest number of cardholders (based on billing addresses) whose accounts are designated for the trust portfolio were in the five states listed below, adverse economic conditions affecting cardholders residing in those areas could affect timely payment by the related cardholders of amounts due on the accounts and, accordingly, the rate of delinquencies and losses for the trust portfolio.

 

Composition by Billing Address of the Trust Portfolio

 

Billing Address

Total Receivables Outstanding

Percentage of
Total Receivables Outstanding

Number
of Accounts

Percentage
of Number
of Accounts

California $   457,039,012 8.6% 436,713 9.3%
Texas 438,911,916 8.3% 342,142 7.3%
Florida 384,565,462 7.2% 341,986 7.3%
New York 339,926,237 6.4% 331,793 7.0%
Pennsylvania 265,993,589 5.0% 253,054 5.4%
Other

3,431,012,302

64.5%

3,008,990

63.8%

Total

$5,317,448,518

100.0%

4,714,678

100.0%

 

 

 

Composition by Delinquency Status of the Trust Portfolio

 

Delinquency Status

Total Receivables Outstanding

Percentage of
Total Receivables Outstanding

Number
of Accounts

Percentage
of Number
of Accounts

Current, Credit and Zero Balance $4,992,946,431 93.9% 4,592,286 97.4%
1 – 29 Days 146,324,846 2.8% 67,662 1.4%
30 – 59 Days 45,835,259 0.9% 15,825 0.3%
60 – 89 Days 38,284,530 0.7% 11,852 0.3%
90 – 119 Days 34,482,989 0.6% 10,073 0.2%
120 – 149 Days 31,709,083 0.6% 9,086 0.2%
150 or More Days

27,865,380

0.5%

7,894

0.2%

Total

$5,317,448,518

100.0%

4,714,678

100.0%

 

Composition by FICO® Credit Score

 

A FICO® credit score is a measurement derived from a proprietary credit scoring method owned by Fair, Isaac & Company to determine the likelihood that credit users will pay their credit obligations in accordance with the terms of their accounts. Although Fair, Isaac & Company discloses only limited information about the variables it uses to assess credit risk, those variables likely include, but are not limited to, debt level, credit history, payment patterns (including delinquency experience) and level of utilization of available credit. FICO® credit scores range from 300 to 850, and a borrower with a higher score is statistically expected to be less likely to default in payment than a borrower with a lower score.

 

   

 

FICO® credit scores for any one individual may be determined by up to three independent credit bureaus. In determining whether to grant credit to a potential account holder, the bank uses a FICO® credit score as reported by one of the three major credit bureaus. Therefore, certain FICO® credit scores for an individual account holder based upon information collected by other credit bureaus could be different from the FICO® credit score used by the bank.

 

FICO® credit scores are based on independent, third-party information, the accuracy of which we cannot verify. FICO® credit scores were not developed specifically for use in connection with credit card accounts, but for consumer credit products in general. The bank does not use standardized credit scores, such as a FICO® credit score, alone to determine the credit limit or other terms that are approved or applied on an account. Rather, each application is scored based on the applicant’s credit bureau report using industry and proprietary credit models and bankruptcy scorecards.

 

FICO® credit scores of an individual may change over time, depending on the conduct of the individual, including the individual’s usage of his or her available credit, and changes in credit score technology used by Fair, Isaac & Company. To the extent available, FICO® credit scores are generally obtained at origination of the account and at least quarterly thereafter. Because the composition of the accounts designated for the trust may change over time, this table is not necessarily indicative of FICO® credit scores at origination of the accounts or the composition of the accounts in the trust at any specific time thereafter.

 

The following table reflects receivables as of February 28, 2019, and the composition of accounts by FICO® credit score as most recently refreshed:

 

Composition by FICO® Credit Score Range of the Trust Portfolio

 

FICO® Credit Score Range(1)

Total
Receivables
Outstanding

Percentage
of Total Receivables

Outstanding

Less than or equal to 599 $   295,083,626 5.5%
600-659 690,212,513 13.0%
660-719 2,109,034,610 39.7%
720 and above 2,214,845,251 41.7%
No score

8,272,518

0.2%

Total

$5,317,448,518

100.0%

_______________

(1)FICO® is a federally registered trademark of Fair, Isaac & Company

 

 

Trust Portfolio - Cardholder Monthly Payment Rates

 

 

Twelve Months Ended
February 28,

Calendar Year

One Month Ended

December 31,

 

2019

2018

2017

Lowest Month 18.98% 18.17% 21.90%
Highest Month 20.73% 22.76% 21.90%
Monthly Average 19.86% 20.53% 21.90%

 

   

 

Trust Portfolio - Payment Status1

 

 

Percentage of Accounts

 

Twelve Billing Cycles
Ended
February 28, 2019

Twelve Billing Cycles
Ended in
December, 2018

One Billing Cycle
Ended in
December, 2017

Less than Minimum Payment 7.88% 7.01% 6.61%
Minimum Payment 14.78% 14.08% 12.01%
Greater than Minimum Payment, Less than Full Payment 39.17% 39.99% 39.20%
Full Payment or Greater than Full Payment 38.17% 38.91% 42.18%

_______________

1 The data for accounts that are added or removed from the trust may be excluded or included, respectively, for up to two months after the date of such add or removal.

 

We cannot assure you that the cardholder monthly payment rates or the payment experience for the selected portfolio or trust portfolio in the future will be similar to the historical experience set forth in the tables above. In addition, the amount of collections of receivables may vary from month to month due to seasonal variations, general economic conditions, payment habits of individual cardholders and changes in minimum payment formulas.