Synchrony Card Funding, LLC - FORM 8-K - EX-99.1 - COMPOSITION OF THE TRUST PORTFOLIO - October 2, 2018

Attached files

file filename
EX-4.1 - SYNCHRONYSERIES INDENTURE SUPPLEMENT - Synchrony Card Funding, LLCtv503672_ex4-1.htm
EX-4.6 - CLASS D(2018-1) TERMS DOCUMENT - Synchrony Card Funding, LLCtv503672_ex4-6.htm
EX-4.5 - CLASS C(2018-1) TERMS DOCUMENT - Synchrony Card Funding, LLCtv503672_ex4-5.htm
EX-4.4 - CLASS B(2018-1) TERMS DOCUMENT - Synchrony Card Funding, LLCtv503672_ex4-4.htm
EX-4.3 - RISK RETENTION AGREEMENT - Synchrony Card Funding, LLCtv503672_ex4-3.htm
EX-4.2 - CLASS A(2018-1) TERMS DOCUMENT - Synchrony Card Funding, LLCtv503672_ex4-2.htm
8-K - 8-K - Synchrony Card Funding, LLCtv503672_8k.htm

 

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 nine months ended August 31, 2018, the average monthly balance reduction rate for the accounts in the trust portfolio attributable to such returns and fraud was 1.35%.

 

The following information regarding the trust portfolio is as of August 31, 2018:

 

•total transferred receivables: $5,635,567,996;

 

•principal receivables: $5,447,820,064;

 

•finance charge receivables: $187,747,932; and

 

•total number of accounts designated to the trust portfolio: 4,634,510.

 

As of August 31, 2018:

 

•the accounts designated for the trust portfolio had an average total receivable balance of approximately $1,216 and an average credit limit of approximately $6,026;

 

•for accounts designated for the trust portfolio, the percentage of the aggregate total receivable balance to the aggregate total credit limit was 20.2%; and

 

•the average age of the accounts designated for the trust portfolio was approximately 55 months.

 

The following tables summarize the trust portfolio by various criteria as of August 31, 2018 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 Dual Card   $1,388,280,334    24.6%    878,849    19.0% 
Lowe’s Private Label Credit Card    1,249,528,685    22.2%    1,090,539    23.5% 
Gap Family Dual Card1    1,105,637,066    19.6%    963,399    20.8% 
TJX Dual Card    734,713,095    13.0%    939,472    20.3% 
PayPal Dual Card    482,383,485    8.6%    277,547    6.0% 
BP Dual Card    328,753,049    5.8%    246,674    5.3% 
JCPenney Dual Card    273,927,276    4.9%    173,229    3.7% 
Dick's Sporting Goods Dual Card    72,345,005    1.3%    64,801    1.4% 
Total   $5,635,567,996    100.0%    4,634,510    100.0% 

_____________

1 Old Navy Dual Card, Gap Dual Card and Banana Republic Dual Card, which are affiliated retailers

 

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   $(5,938,661)   -0.1%    66,935    1.4% 
No Balance    -    0.0%    1,094,391    23.6% 
$0.01-$500.00    269,528,926    4.8%    1,426,841    30.8% 
$500.01-$1,000.00    368,396,416    6.5%    506,768    10.9% 
$1,000.01-$2,000.00    849,413,023    15.1%    577,505    12.5% 
$2,000.01-$3,000.00    831,184,950    14.7%    338,305    7.3% 
$3,000.01-$4,000.00    697,066,854    12.4%    200,772    4.3% 
$4,000.01-$5,000.00    653,470,421    11.6%    145,714    3.1% 
$5,000.01-$6,000.00    595,165,437    10.6%    108,538    2.3% 
$6,000.01-$7,000.00    403,729,185    7.2%    62,465    1.3% 
$7,000.01-$8,000.00    321,859,923    5.7%    43,092    0.9% 
$8,000.01-$9,000.00    208,130,584    3.7%    24,581    0.5% 
$9,000.01-$10,000.00    172,073,706    3.1%    18,143    0.4% 
$10,000.01-$15,000.00    192,593,134    3.4%    16,585    0.4% 
$15,000.01-$20,000.00    39,715,974    0.7%    2,351    0.1% 
$20,000.01 or  more    39,178,125    0.7%    1,524    0.0% 
Total   $5,635,567,996    100.0%    4,634,510    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   $22,471,607    0.4%    119,542    2.6% 
$500.01-$1,000.00    57,018,300    1.0%    133,100    2.9% 
$1,000.01-$2,000.00    311,389,913    5.5%    492,602    10.6% 
$2,000.01-$3,000.00    454,075,443    8.1%    580,783    12.5% 
$3,000.01-$4,000.00    409,731,407    7.3%    504,702    10.9% 
$4,000.01-$5,000.00    530,930,539    9.4%    460,975    9.9% 
$5,000.01-$6,000.00    642,890,305    11.4%    395,556    8.5% 
$6,000.01-$7,000.00    444,724,980    7.9%    303,707    6.6% 
$7,000.01-$8,000.00    650,535,608    11.5%    385,453    8.3% 
$8,000.01-$9,000.00    382,665,560    6.8%    256,226    5.5% 
$9,000.01-$10,000.00    765,878,822    13.6%    415,838    9.0% 
$10,000.01-$20,000.00    847,535,637    15.0%    554,214    12.0% 
$20,000.01 or more    115,719,876    2.1%    31,812    0.7% 
Total   $5,635,567,996    100.0%    4,634,510    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   253,023,737    4.5%    285,235    6.2% 
Over 12 Months to 24 Months   810,671,287    14.4%    900,166    19.4% 
Over 24 Months to 36 Months   1,308,038,410    23.2%    929,946    20.1% 
Over 36 Months to 48 Months   856,164,109    15.2%    672,717    14.5% 
Over 48 Months to 60 Months   941,975,399    16.7%    647,848    14.0% 
Over 60 Months to 72 Months   496,694,336    8.8%    402,862    8.7% 
Over 72 Months to 84 Months   283,109,269    5.0%    232,822    5.0% 
Over 84 Months to 96 Months   157,706,765    2.8%    124,102    2.7% 
Over 96 Months to 108 Months   90,134,042    1.6%    69,591    1.5% 
Over 108 Months to 120 Months   48,369,471    0.9%    47,216    1.0% 
Over 120 Months   389,681,171    6.9%    322,005    6.9% 
Total   $5,635,567,996    100.0%    4,634,510    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 August 31, 2018 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   $477,054,847    8.5%    430,098    9.3% 
Texas    458,865,909    8.1%    335,549    7.2% 
Florida    401,183,083    7.1%    331,166    7.1% 
New York    356,854,992    6.3%    328,031    7.1% 
Pennsylvania    284,310,640    5.0%    249,782    5.4% 
Other    3,657,298,526    64.9%    2,959,884    63.9% 
Total   $5,635,567,996    100.0%    4,634,510    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   $5,392,137,542    95.7%    4,526,867    97.7% 
1 – 29 Days    140,811,615    2.5%    72,376    1.6% 
30 – 59 Days    41,725,112    0.7%    16,766    0.4% 
60 – 89 Days    23,130,353    0.4%    7,603    0.2% 
90 – 119 Days    15,371,121    0.3%    4,562    0.1% 
120 – 149 Days    13,390,726    0.2%    3,912    0.1% 
150 or More Days    9,001,528    0.2%    2,424    0.1% 
Total   $5,635,567,996    100.0%    4,634,510    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 August 31, 2018, 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   $198,066,378    3.5% 
600-659    696,201,616    12.4% 
660-719    2,234,296,469    39.6% 
720 and above    2,499,281,151    44.3% 
No score    7,722,383    0.1% 
Total   $5,635,567,996    100.0% 

 

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

 

Trust Portfolio - Cardholder Monthly Payment Rates

 

   Eight Months Ended
August 31,		  

One Month Ended

December 31,

 
   2018   2017 
Lowest Month    18.17%    21.90% 
Highest Month    22.76%    21.90% 
Monthly Average    20.60%    21.90% 

 

 

 

 

Trust Portfolio - Payment Status1

 

   Percentage of Accounts 
   Eight Billing Cycles Ended
August 31, 2018		   One Billing Cycle Ended in
December, 2017		 
Less than Minimum Payment    6.65%    6.61% 
Minimum Payment    14.24%    12.01% 
Greater than Minimum Payment, Less than Full Payment    41.71%    39.20% 
Full Payment or Greater than Full Payment    37.40%    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.