UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
Current
Report
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of
Report (Date of earliest event reported): November 19,
2009
CITIBANK
CREDIT CARD ISSUANCE TRUST
(Issuing
Entity in respect of the Notes)
(Exact
name of issuing entity as specified in its charter)
DELAWARE
|
333-145220-01
|
NOT
APPLICABLE
|
(State
or other jurisdiction of incorporation or organization)
|
(Commission
file number)
|
(I.R.S.
Employer Identification No.)
|
CITIBANK
CREDIT CARD MASTER TRUST I
(Issuing
Entity in respect of the Collateral Certificate)
(Exact
name of issuing entity as specified in its charter)
NEW
YORK
|
333-145220-02
|
NOT
APPLICABLE
|
(State
or other jurisdiction of incorporation or organization)
|
(Commission
file number)
|
(I.R.S.
Employer Identification No.)
|
CITIBANK
(SOUTH DAKOTA), NATIONAL ASSOCIATION
(Exact
name of depositor and sponsor as specified in its charter)
UNITED
STATES OF AMERICA
|
333-145220
|
46-0358360
|
(State
or other jurisdiction of incorporation or organization)
|
(Commission
file number)
|
(I.R.S.
Employer Identification No.)
|
701
East 60th Street, North
Sioux
Falls, South Dakota
|
57117
|
(Address
of principal executive offices of depositor and sponsor)
|
(Zip
Code)
|
Registrant's telephone number,
including area code: (605)
331-2626
(Former name or former address, if
changed since last report): Not
Applicable
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
[ ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))
Item
8.01 Other Events.
The following information relates to the credit card
receivables owned by Citibank Credit Card Master Trust I and the related credit
card accounts. Some of the terms used herein are used as defined in
the Glossary of Terms at the end of this Report.
Loss
and Delinquency Experience
The following table sets forth the loss experience for
cardholder payments on the credit card accounts for each of the periods shown on
a cash basis. The Net Loss percentage calculated for each period
below is obtained by dividing Net Losses by the Average Principal Receivables
Outstanding multiplied by a fraction, the numerator of which is the total number
of days in the applicable calendar year and the denominator of which is the
total number of days in the trust monthly reporting periods for the applicable
period (365/273 for the nine months ended September 25, 2009, 366/366 for the
year ended December 26, 2008, 365/365 for the year ended December 26, 2007 and
365/364 for the year ended December 26, 2006).
If accrued finance charge receivables that have been
written off were included in losses, Net Losses would be higher as an absolute
number and as a percentage of the average of principal and finance charge
receivables outstanding during the periods indicated. Average Principal
Receivables Outstanding is the average of principal receivables outstanding
during the periods indicated. There can be no assurance that the loss experience
for the receivables in the future will be similar to the historical experience
set forth below.
Loss
Experience for the Accounts
(Dollars
in Thousands)
Nine
Months Ended
September 25,
2009
|
Year
Ended
December 26,
2008
|
Year
Ended
December 26,
2007
|
Year
Ended
December 26,
2006
|
Average
Principal Receivables Outstanding
|
$75,444,635
|
$76,956,779
|
$73,675,752
|
$74,357,999
|
Gross
Charge-Offs
|
$6,043,547
|
$5,182,543
|
$3,577,964
|
$3,210,534
|
Recoveries
|
$413,834
|
$569,718
|
$670,501
|
$667,587
|
Net
Losses
|
$5,629,712
|
$4,612,825
|
$2,907,463
|
$2,542,947
|
Net
Losses as a Percentage of Average Principal Receivables
Outstanding
|
9.98%
|
5.99%
|
3.95%
|
3.43%
|
Net losses as a percentage of gross charge-offs for the
nine months ended September 25, 2009 were 93.15% and for each of the years ended
December 26, 2008, December 26, 2007 and December 26, 2006 were 89.01%, 81.26%
and 79.21%, respectively. Gross charge-offs are charge-offs before
recoveries and do not include the amount of any reductions in Average Principal
Receivables Outstanding due to fraud, returned goods, customer disputes or
various other miscellaneous write-offs. During the 45 trust monthly
reporting periods from January 2006 through September 2009, such reductions
ranged from 0.71% to 1.97% of the outstanding principal receivables as of the
end of the related trust monthly reporting period. The reduction of
receivables in this manner reduces only the seller's interest in the master
trust. Recoveries are collections received in respect of principal receivables
previously charged off as uncollectible. Net losses are gross charge-offs minus
recoveries.
2
In September 2009, Citibank (South Dakota), National
Association changed its bankruptcy loss recognition practice with respect to its
revolving credit card accounts. Under the new process, if Citibank
(South Dakota) receives notice that a cardholder had filed for bankruptcy or had
a bankruptcy petition filed against the cardholder, Citibank (South Dakota) will
charge off the receivables in the related account no later than 30 days after
receipt of such notification. Prior to this change in practice in September
2009, Citibank (South Dakota) charged off such receivables no later than 10 days
after receipt of such notification. The new process is within the
guidelines set forth by the Federal Financial Institutions Examination Council,
which requires that accounts be charged off within 60 days of notification. The
change was made to improve the accuracy in bankruptcy loss recognition and to
more closely align Citibank (South Dakota)'s practices with industry norms.
While the effect of this change reduced the master trust's net credit loss rate
for the September 2009 and October 2009 trust monthly reporting periods, such
change did not have a material impact on the Loss Experience for the Accounts
for the Nine Months Ended September 25, 2009 and it is expected that such change
will not have a material impact on the Loss Experience for the Accounts for the
Year Ended December 28, 2009.
The following table sets forth the delinquency
experience for cardholder payments on the credit card accounts as of each of the
dates shown. The Delinquent Amount includes both principal
receivables and finance charge receivables. The percentages are the result of
dividing the Delinquent Amount by the average of principal and finance charge
receivables outstanding during the periods indicated. There can be no assurance
that the delinquency experience for the receivables in the future will be
similar to the historical experience set forth below.
Delinquency
Experience for the Accounts
(Dollars
in Thousands)
As
of
September 27,
2009
|
As
of
December 28,
2008
|
As
of
December 30,
2007
|
As
of
December 31,
2006
|
|
Number
of Days
Delinquent
|
Delinquent
Amount
|
Percentage
|
Delinquent
Amount
|
Percentage
|
Delinquent
Amount
|
Percentage
|
Delinquent
Amount
|
Percentage
|
Up
to 34 days
|
$2,733,259
|
3.56%
|
$2,707,226
|
3.49%
|
$2,485,572
|
3.34%
|
$2,207,754
|
2.94%
|
35
to 64 days
|
1,234,286
|
1.61
|
1,187,447
|
1.53
|
867,581
|
1.17
|
731,372
|
0.97
|
65
to 94 days
|
947,275
|
1.23
|
919,345
|
1.18
|
637,074
|
0.86
|
531,616
|
0.71
|
95
to 124 days
|
794,822
|
1.04
|
744,767
|
0.96
|
537,562
|
0.72
|
437,786
|
0.58
|
125
to 154 days
|
701,183
|
0.91
|
648,960
|
0.84
|
433,883
|
0.58
|
369,219
|
0.49
|
155
to 184 days
|
663,500
|
0.86
|
543,247
|
0.70
|
392,882
|
0.53
|
336,001
|
0.45
|
Total
|
$7,074,325
|
9.21%
|
$6,750,992
|
8.70%
|
$5,354,554
|
7.20%
|
$4,613,748
|
6.14%
|
The global financial and economic
crisis has had and will continue to have an adverse effect on the assets of the
master trust. The economic recession and rising unemployment have resulted in
significant increases in net losses and delinquencies for 2008 and the first
nine months of 2009 compared to 2007 and 2006, and there could be further
increases in net losses and delinquencies in future periods. If conditions in
the general economy deteriorate further, net losses and delinquencies could
increase significantly.
3
Revenue
Experience
The revenues for the credit card accounts from finance
charges, fees paid by cardholders and interchange for the nine months ended
September 25, 2009 and for each of the years ended December 26, 2008, December
26, 2007 and December 26, 2006 are set forth in the following
table. The revenue experience in this table is presented on a cash
basis before deduction for charge-offs. Average Revenue Yield calculated for
each period below is obtained by dividing Finance Charges and Fees Paid by
Average Principal Receivables Outstanding multiplied by a fraction, the
numerator of which is the total number of days in the applicable calendar year
and the denominator of which is the total number of days in the trust monthly
reporting periods for the applicable period (365/273 for the nine months ended
September 25, 2009, 366/366 for the year ended December 26, 2008, 365/365 for
the year ended December 26, 2007 and 365/364 for the year ended December 26,
2006).
Revenues from finance charges, fees and interchange will
be affected by numerous factors, including the periodic finance charge on the
credit card receivables, the amount of any annual membership fee, other fees
paid by cardholders, the amount, if any, of principal receivables that is
discounted and treated as finance charge receivables, the percentage of
cardholders who pay off their balances in full each month and do not incur
periodic finance charges on purchases, the percentage of credit card accounts
bearing finance charges at promotional rates and changes in the level of
delinquencies on the receivables.
Revenue
Experience for the Accounts
(Dollars
in Thousands)
Nine
Months
Ended
September 25,
2009
|
Year
Ended
December 26,
2008
|
Year
Ended
December 26,
2007
|
Year
Ended
December 26,
2006
|
|
Finance
Charges and Fees Paid
|
$10,161,155
|
$12,135,240
|
$12,870,801
|
$12,720,292
|
Average
Revenue Yield
|
18.01%
|
15.77%
|
17.47%
|
17.15%
|
The revenues from periodic finance charges and fees --
other than annual fees -- depend in part upon the collective preference of
cardholders to use their credit cards as revolving debt instruments for
purchases and cash advances and to pay account balances over several months --
as opposed to convenience use, where cardholders pay off their entire balance
each month, thereby avoiding periodic finance charges on their purchases -- and
upon other card-related services for which the cardholder pays a fee. Revenues
from periodic finance charges and fees also depend on the types of charges and
fees assessed on the credit card accounts. Accordingly, revenues will be
affected by future changes in the types of charges and fees assessed on the
accounts and in the types of additional accounts added from time to time. These
revenues could be adversely affected by future changes in fees and charges
assessed on the accounts and other factors.
In March 2009, Citibank (South Dakota) began applying a
dynamic discount percentage to the principal receivables in the credit card
accounts designated to the master trust. The dynamic discount
percentage will range from zero to 3.00% based on the level of excess spread and
is initially 1.00%. The dynamic discount percentage for each trust
monthly reporting period will be disclosed in the monthly Distribution Report on
Form 10-D filed with the Securities and Exchange Commission by Citibank Credit
Card Issuance Trust. Instituting the discount recharacterizes that
percentage of principal collections as finance charge collections and thereby
increases the revenue yield of the accounts. Assuming that the
principal payment rate is 15% and all other revenue components remain the same,
a 1.00% discount adds approximately 1.80% in revenue yield for a given
month. This discounting will remain in effect until the later of (1)
the trust monthly reporting period in which the discount percentage reaches zero
and (2) the first trust monthly reporting period in 2010.
4
Cardholder
Monthly Payment Rates
The following table sets forth the highest and lowest
cardholder monthly payment rates for the credit card accounts during any month
in the periods shown and the average of the cardholder monthly payment rates for
all months during the periods shown, in each case calculated as a percentage of
the total beginning account balances for that month.
Monthly
payment rates on the credit card receivables may vary because, among other
things, a cardholder may fail to make a required payment, may only make the
minimum required payment or may pay the entire outstanding balance. Monthly
payment rates on the receivables may also vary due to seasonal purchasing and
payment habits of cardholders. Monthly payment rates include amounts that are
treated as payments of principal receivables and finance charge receivables with
respect to the accounts under the pooling and servicing agreement. In addition,
the amount of outstanding receivables and the rates of payments, delinquencies,
charge-offs and new borrowings on the accounts depend on a variety of factors
including seasonal variations, the availability of other sources of credit,
general economic conditions, tax laws, consumer spending and borrowing patterns
and the terms of the accounts, which may change. Cardholder monthly
payment rates are calculated on the balances of those cardholder accounts that
have an amount due. Cardholder accounts with a zero balance or a
credit balance are excluded from these calculations.
As of the
most recent related billing date prior to September 27, 2009, 46.32% of the
accounts had a credit balance or otherwise had no payment due, 22.04% of the
cardholders paid their entire outstanding balance, 4.57% of the cardholders made
only the minimum payment due, and the remaining 27.07% of the cardholders paid
an amount either less than the minimum due (including no payment) or greater
than the minimum due, but less than the entire outstanding balance.
Cardholder
Monthly Payment Rates for the Accounts
Nine
Months
Ended
September 25,
2009
|
Year
Ended
December 26,
2008
|
Year
Ended
December 26,
2007
|
Year
Ended
December 26,
2006
|
|
Lowest
Month
|
16.75%
|
16.93%
|
20.09%
|
20.21%
|
Highest
Month
|
19.87%
|
23.36%
|
24.14%
|
24.14%
|
Average
of the Months in the Period
|
18.32%
|
20.48%
|
22.20%
|
21.96%
|
Interchange
Credit card-issuing banks participating in the
MasterCard International, VISA and American Express systems receive interchange
or similar fee income – referred to herein as interchange – as compensation for
performing issuer functions, including taking credit risk, absorbing certain
fraud losses and funding receivables for a limited period before initial
billing. Under the MasterCard International, VISA and American
Express systems, interchange in connection with cardholder charges for
merchandise and services is passed from banks or other entities which clear the
transactions for merchants to credit card-issuing banks. Interchange
generally ranges from approximately 1% to 2% of the transaction amount. Citibank
(South Dakota) is required to transfer to the master trust interchange
attributed to cardholder charges for merchandise and services in the accounts.
In general, interchange is allocated to the master trust on the basis of the
ratio that the amount of cardholder charges for merchandise and services in the
accounts bears to the total amount of cardholder charges for merchandise and
services in the portfolio of credit card accounts maintained by Citibank (South
Dakota). MasterCard International, VISA and American Express may change the
amount of interchange reimbursed to banks issuing their credit
cards.
5
The
Credit Card Receivables
The receivables in the credit card accounts designated
to the master trust as of September 27, 2009 included $2,093,978,983 of finance
charge receivables and $76,914,578,250 of principal receivables – which
amounts include overdue finance charge receivables and overdue principal
receivables. As of September 27, 2009, there were 33,102,539 accounts. Included
within the accounts are inactive accounts that have no balance. The accounts had
an average principal receivable balance of $2,324 and an average credit limit of
$12,675. The average principal receivable balance in the accounts as a
percentage of the average credit limit with respect to the accounts was
approximately 18%. Approximately 90% of the accounts were opened before
September 2007.
As of September 27, 2009, approximately 99.84% of the
credit card receivables in the master trust represented obligations of
cardholders with billing addresses in the United States. Of the accounts, as of
September 27, 2009, approximately the following percentages related to
cardholders with billing addresses in the following states:
Percentage
of Total
Number of
Accounts
|
Percentage
of Total
Outstanding
Receivables
|
||
California
|
13.78%
|
14.84%
|
|
New
York
|
10.70%
|
9.66%
|
|
Texas
|
6.87%
|
8.33%
|
|
Florida
|
6.50%
|
6.38%
|
|
Illinois
|
5.18%
|
5.61%
|
Since the
largest number of cardholders’ billing addresses were in California, New York,
Texas, Florida and Illinois, adverse changes in the business or economic
conditions in these states could have an adverse effect on the performance of
the receivables. No other state represents more than 5% of the number
of accounts or outstanding receivables.
As of
September 27, 2009, approximately 1.85% of the credit card receivables in the
master trust related to small business revolving credit card accounts originated
by Citibank (South Dakota). The receivables in the 221,513 small business credit
card accounts designated to the master trust as of September 27, 2009 included
$33,472,541 of finance charge receivables and $1,429,751,557 of principal
receivables – which amounts include overdue finance charge receivables and
overdue principal receivables.
Citibank (South Dakota) issues its small business credit
cards to business owners who agree to use the cards for business purposes. With
respect to substantially all accounts, both the individual business owner and
the business are jointly and severally liable for all charges and balances on
the account. For the remainder of the accounts, only the individual business
owner is liable. The small business credit card accounts generally have higher
receivables balances, credit limits and monthly payment rates than the other
accounts designated to the master trust, taken as a whole. In
addition, interchange generated on the receivables in these accounts is
generally higher than the interchange generated on the receivables in the other
accounts designated to the master trust.
6
As of September 27, 2009, the small business credit card
accounts designated to the master trust had an average principal receivable
balance of $6,454 and an average credit limit of $31,641. The average principal
receivable balance in the accounts as a percentage of the average credit limit
with respect to the accounts was approximately 20%. Approximately 84.79% of the
accounts were opened before September 2007. Of the accounts, as of September 27,
2009, approximately 25.38% of the receivables related to obligors with billing
addresses in California and 16.12% in Texas. No other state
represents more than 10% of the outstanding receivables. As of
September 27, 2009, 82.90% of the receivables in the accounts related to
obligors whose FICO score is greater than 660, and 92.77% of the receivables had
a “current” payment status as of the most recent related billing
date.
As of the most recent related billing date prior to
September 27, 2009, 5.38% of the small business credit card accounts had a
credit balance or otherwise had no payment due, 62.97% of the obligors paid
their entire outstanding balance, 2.46% of the obligors made only the minimum
payment due, and the remaining 29.20% of the obligors paid an amount either less
than the minimum due (including no payment) or greater than the minimum due, but
less than the entire outstanding balance.
As of
September 30, 2009, approximately 20% of the credit card receivables in the
master trust related to credit cards issued under the Citibank/American Airlines
AAdvantage co-brand program. Cardholders in the AAdvantage program
receive benefits for the amounts charged on their AAdvantage cards, including
frequent flyer miles in American Airline's frequent traveler program. Conditions
that adversely affect the airline industry or American Airlines could affect the
usage and payment patterns of the AAdvantage program cards. In addition,
termination of the AAdvantage program could have an adverse effect on the
payment rates and excess spread reported by the master trust. However, we do not
expect any such termination to affect the integrity or sustainability of master
trust cash flows. As of September 30, 2009, no other co-brand or affinity
program of Citibank (South Dakota) accounted for more than 1% of the credit card
receivables in the master trust.
The credit card accounts include receivables which, in
accordance with the servicer's normal servicing policies, were charged-off as
uncollectible. However, for purposes of calculation of the amount of principal
receivables and finance charge receivables in the master trust for any date, the
balance of the charged-off receivables is zero and the master trust owns only
the right to receive recoveries on these receivables.
The following tables summarize the credit card accounts
designated to the master trust as of September 27, 2009 by various criteria.
References to "Receivables Outstanding" in these tables include both finance
charge receivables and principal receivables. Because the composition of the
accounts will change in the future, these tables are not necessarily indicative
of the future composition of the accounts.
Credit balances presented in the following table are a
result of cardholder payments and credit adjustments applied in excess of a
credit card account's unpaid balance. Accounts which have a credit balance are
included because receivables may be generated in these accounts in the future.
Credit card accounts which have no balance are included because receivables may
be generated in these accounts in the future.
7
Composition
of Accounts by Account Balance
Percentage
|
Percentage
|
|||||||
of
Total
|
of
Total
|
|||||||
Number
of
|
Number
of
|
Receivables
|
Receivables
|
|||||
Account
Balance
|
Accounts
|
Accounts
|
Outstanding
|
Outstanding
|
||||
Credit
Balance…........................…..
|
277,996
|
0.84%
|
$ (59,819,641)
|
-0.08%
|
||||
No
Balance ….............................…..
|
15,374,439
|
46.46
|
0
|
0.00
|
||||
Less
than or equal to $500.00.............
|
4,402,303
|
13.30
|
827,237,470
|
1.05
|
||||
$500.01
to $1,000.00..........................
|
1,921,591
|
5.80
|
1,414,312,547
|
1.79
|
||||
$1,000.01
to $2,000.00.......................
|
2,401,141
|
7.25
|
3,517,052,745
|
4.45
|
||||
$2,000.01
to $3,000.00.......................
|
1,611,309
|
4.87
|
3,990,985,268
|
5.05
|
||||
$3,000.01
to $4,000.00...............…....
|
1,173,159
|
3.54
|
4,083,195,843
|
5.17
|
||||
$4,000.01
to $5,000.00.......................
|
910,746
|
2.75
|
4,087,260,150
|
5.17
|
||||
$5,000.01
to $6,000.00....................
|
714,594
|
2.16
|
3,920,513,588
|
4.96
|
||||
$6,000.01
to $7,000.00.......................
|
587,074
|
1.77
|
3,809,210,925
|
4.82
|
||||
$7,000.01
to $8,000.00.......................
|
490,571
|
1.48
|
3,673,309,617
|
4.65
|
||||
$8,000.01
to $9,000.00.......................
|
422,352
|
1.28
|
3,585,896,349
|
4.54
|
||||
$9,000.01
to $10,000.00.....................
|
364,052
|
1.10
|
3,455,906,522
|
4.37
|
||||
$10,000.01
to $15,000.00...................
|
1,155,686
|
3.49
|
14,123,378,688
|
17.88
|
||||
$15,000.01
to $20,000.00...................
|
625,276
|
1.89
|
10,812,109,135
|
13.68
|
||||
Over
$20,000.00.................………...
|
670,250
|
2.02
|
17,768,008,027
|
22.50
|
||||
Total...............................................
|
33,102,539
|
100.00%
|
$79,008,557,233
|
100.00%
|
Composition
of Accounts by Credit Limit
Percentage
|
Percentage
|
||||||
of
Total
|
of
Total
|
||||||
Number
of
|
Number
of
|
Receivables
|
Receivables
|
||||
Credit
Limit
|
Accounts
|
Accounts
|
Outstanding
|
Outstanding
|
|||
Less
than or equal to $500.00............
|
1,194,094
|
3.61%
|
$ 83,385,072
|
0.11%
|
|||
$500.01
to $1,000.00.........................
|
805,667
|
2.43
|
202,351,470
|
0.26
|
|||
$1,000.01
to $2,000.00......................
|
1,652,723
|
4.99
|
806,327,744
|
1.02
|
|||
$2,000.01
to $3,000.00......................
|
1,559,085
|
4.71
|
1,302,549,418
|
1.65
|
|||
$3,000.01
to $4,000.00..........…........
|
1,430,372
|
4.32
|
1,432,703,795
|
1.81
|
|||
$4,000.01
to $5,000.00......................
|
1,729,679
|
5.23
|
1,835,863,771
|
2.32
|
|||
$5,000.01
to $6,000.00......................
|
1,509,433
|
4.56
|
1,728,149,938
|
2.19
|
|||
$6,000.01
to $7,000.00......................
|
1,542,771
|
4.66
|
1,910,002,591
|
2.42
|
|||
$7,000.01
to $8,000.00......................
|
1,733,485
|
5.24
|
1,965,228,486
|
2.49
|
|||
$8,000.01
to $9,000.00......................
|
1,652,959
|
4.99
|
2,233,975,631
|
2.83
|
|||
$9,000.01
to $10,000.00....................
|
1,753,430
|
5.30
|
2,429,320,755
|
3.07
|
|||
$10,000.01
to $15,000.00..................
|
6,432,338
|
19.44
|
11,540,134,955
|
14.61
|
|||
$15,000.01
to $20,000.00..................
|
3,499,434
|
10.56
|
10,325,690,265
|
13.06
|
|||
Over
$20,000.00......…......................
|
6,607,069
|
19.96
|
41,212,873,342
|
52.16
|
|||
Total..........................................
|
33,102,539
|
100.00%
|
$79,008,557,233
|
100.00%
|
8
Accounts presented in the table below as "Current"
include accounts on which the minimum payment has not been received before the
next billing date following the issuance of the related
bill.
Composition
of Accounts by Payment Status
Percentage
|
Percentage
|
||||||
of
Total
|
of
Total
|
||||||
Number
of
|
Number
of
|
Receivables
|
Receivables
|
||||
Payment
Status
|
Accounts
|
Accounts
|
Outstanding
|
Outstanding
|
|||
Current…..........................................
|
32,091,055
|
96.94%
|
$71,934,230,915
|
91.04%
|
|||
Up
to 34 days delinquent...................
|
453,476
|
1.37
|
2,733,259,324
|
3.46
|
|||
35
to 64 days delinquent..................
|
174,594
|
0.53
|
1,234,285,880
|
1.56
|
|||
65
to 94 days delinquent..................
|
125,845
|
0.38
|
947,275,471
|
1.20
|
|||
95
to 124 days delinquent..................
|
97,910
|
0.30
|
794,822,490
|
1.01
|
|||
125
to 154 days delinquent...............
|
83,167
|
0.25
|
701,183,329
|
0.89
|
|||
155
to 184 days delinquent................
|
76,492
|
0.23
|
663,499,824
|
0.84
|
|||
Total.........................................
|
33,102,539
|
100.00%
|
$79,008,557,233
|
100.00%
|
Composition
of Accounts by Age
Percentage
|
Percentage
|
||||||||
of
Total
|
of
Total
|
||||||||
Number
of
|
Number
of
|
Receivables
|
Receivables
|
||||||
Age
|
Accounts
|
Accounts
|
Outstanding
|
Outstanding
|
|||||
Less
than or equal to 6 months..........
|
315,765
|
0.95%
|
$ 696,774,660
|
0.88%
|
|||||
Over
6 months to 12 months.............
|
468,993
|
1.42
|
859,652,740
|
1.09
|
|||||
Over
12 months to 24 months...........
|
2,562,027
|
7.74
|
4,796,411,343
|
6.07
|
|||||
Over
24 months to 36 months...........
|
2,254,064
|
6.81
|
4,012,247,660
|
5.08
|
|||||
Over
36 months to 48 months...........
|
2,552,922
|
7.71
|
4,868,006,361
|
6.16
|
|||||
Over
48 months to 60 months...........
|
2,857,314
|
8.63
|
4,654,471,467
|
5.89
|
|||||
Over
60 months.................................
|
22,091,454
|
66.74
|
59,120,993,002
|
74.83
|
|||||
Total.........................................
|
33,102,539
|
100.00%
|
$79,008,557,233
|
100.00%
|
9
The
following table sets forth the composition of accounts by FICO®*
score as of September 27, 2009. A FICO score is a measurement determined by
Fair, Isaac & Company using information collected by major credit bureaus to
assess credit risk. A credit report is generally obtained from one or
more credit bureaus for each application for a new account. Once a
customer has been issued a card, Citibank (South Dakota) refreshes the FICO
score on most accounts on a monthly basis. Citibank (South Dakota) generally
does not refresh the FICO scores of accounts with a zero balance that have been
determined to be inactive, accounts in forbearance or workout programs and
certain other categories of accounts. A FICO score of zero indicates
that the FICO score of an account has not been refreshed for one of these
reasons or that the customer did not have enough credit history for a FICO score
to be calculated.
As of
September 27, 2009, 71.77% of the receivables in the master trust related to
obligors whose FICO score is greater than 660.
Composition
of Accounts by FICO Score
Percentage
|
Percentage
|
||||||
of
Total
|
of
Total
|
||||||
Number
of
|
Number
of
|
Receivables
|
Receivables
|
||||
FICO Score
|
Accounts
|
Accounts
|
Outstanding
|
Outstanding
|
|||
0
........……………………………....
|
6,482,870
|
19.58%
|
$ 579,679,919
|
0.73%
|
|||
001
to 599 ……………....................
|
2,006,567
|
6.06
|
9,714,453,289
|
12.30
|
|||
600
to 639 ……………....................
|
1,255,390
|
3.79
|
6,133,919,910
|
7.76
|
|||
640
to 660 …………….................
|
1,075,810
|
3.25
|
5,873,357,514
|
7.43
|
|||
661
to 679 ……………....................
|
1,265,201
|
3.82
|
7,189,248,503
|
9.10
|
|||
680
to 699 …………........................
|
1,655,057
|
5.00
|
8,997,833,828
|
11.39
|
|||
700
to 719 …………........................
|
2,069,309
|
6.25
|
9,885,939,264
|
12.51
|
|||
720
to 739 …………........................
|
2,313,874
|
6.99
|
8,929,240,157
|
11.30
|
|||
740
to 759 …………........................
|
2,625,157
|
7.93
|
7,471,224,296
|
9.46
|
|||
760
to 800 ……………....................
|
6,913,783
|
20.90
|
10,206,072,763
|
12.92
|
|||
801
and above ........…......................
|
5,439,521
|
16.43
|
4,027,587,790
|
5.10
|
|||
Total
........................................
|
33,102,539
|
100.00%
|
$79,008,557,233
|
100.00%
|
---------------------
* FICO® is a
registered trademark of Fair, Isaac & Company.
Static
Pool Information
Static
pool information is information relating to the master trust receivables,
organized by year of origination of each related credit card
account. Static pool information for the master trust receivables was
not stored on our computer systems before January 2006, and cannot be produced
without unreasonable effort and expense. Static pool information
concerning losses, delinquencies, revenue yield and payment rate for the master
trust receivables has been stored since January 2006 and can be found at www.citigroup.com/citigroup/citibankmastertrust/staticpool. This
information is presented in monthly increments and will be updated
quarterly. The static pool information on the website is organized by
year of origination of the applicable account for each of the five most recent
years, and for accounts originated more than five years ago. As of
September 27, 2009, less than 34% of the accounts were originated within the
last five years. Because static pool information has only been stored
since January 2006, the full array of static pool information will not be
available until 2011. There can be no assurance that the loss,
delinquency, revenue yield and payment rate experience for the receivables in
the future will be similar to the historical experience set forth on the
website.
10
A
copy of the information contained on the website as of the date of this Form 8-K
may be obtained by any person free of charge upon request to Citibank (South
Dakota), as servicer, 701 East 60th Street, North, Sioux Falls, South Dakota
57117, telephone number (605) 331-1567.
Billing
and Payments
The
credit card accounts have different billing and payment structures, including
different periodic finance charges and fees. The following information reflects
the current billing and payment characteristics of the accounts.
Each
month, billing statements are sent to cardholders who had activity during the
immediately preceding billing period. To the extent a cardholder has
a balance due, the cardholder must make a minimum payment equal to the sum of
any amount which is past due plus any amount which is in excess of the credit
limit and, for most accounts, the greatest of the following:
·
|
the
new balance on the billing statement if it is less than $20, or $20, if
the new balance is at least $20;
|
·
|
1%
of the new balance plus the amount of any billed finance charges and any
billed late fee; and
|
·
|
1.5%
of the new balance.
|
A periodic finance charge is imposed on the credit card
accounts. The periodic finance charge imposed on balances for purchases and cash
advances for a majority of the accounts is calculated by multiplying (1) the
daily balances for each day during the billing cycle by (2) the applicable daily
periodic finance charge rate, and summing the results for each day in the
billing period. The daily balance is calculated by taking the previous day's
balance, adding any new purchases or cash advances and fees, adding the daily
finance charge on the previous day's balance, and subtracting any payments or
credits. Cash advances are included in the daily balance from the date the
advances are made. Purchases are included in the daily balance generally from
the date of purchase. Periodic finance charges are not imposed in most
circumstances on purchase amounts if all balances shown in the previous billing
statement are paid in full by the due date indicated on the
statement.
As of the date of this Form 8-K:
·
|
the
periodic finance charge imposed on balances in most credit card accounts
for purchases is the Prime Rate, as published in The Wall Street Journal,
plus a percentage ranging from 7.99% to 13.99%, with minimum rates varying
by account (the lowest minimum rate equal to the greater of 13.99% or the
sum of the Prime Rate and 7.99%);
|
·
|
the
periodic finance charge imposed on balances in most credit card accounts
for cash advances is the greater of 21.99% or the sum of the Prime Rate
and 16.99%; and
|
·
|
if
a cardholder defaults under their credit card agreement, the periodic
finance charge assessed on all balances in their account can be increased
up to the greater of 29.99% or the sum of the Prime Rate and
23.99%.
|
Promotional
rates are offered from time to time to attract new cardholders and to promote
balance transfers from other credit card issuers and the periodic finance charge
on a limited number of accounts may be greater or less than those generally
assessed on the accounts.
11
Most of the accounts are subject to additional fees,
including:
·
|
a
late fee if the cardholder does not make the required minimum payment by
the payment date shown on the monthly billing statement. The
late fee is $15 on balances up to $100, $29 on balances of $100 up to $250
and $39 on balances of $250 and
over;
|
·
|
a
cash advance fee which is generally equal to 3.0% of the amount of the
cash advance, subject to a minimum fee of
$5;
|
·
|
a
balance transfer fee of 3.0% of the amount transferred to the account,
subject to a minimum fee of $5, unless otherwise disclosed in a particular
offer;
|
·
|
a
fee on purchases made outside the United States, whether in U.S. dollars
or a foreign currency, which is generally equal to 3.0% of the amount of
the purchase, after its conversion into U.S.
dollars;
|
·
|
a
returned payment fee of $39;
|
·
|
a
returned check fee of $39;
|
·
|
a
stop payment fee of $39; and
|
·
|
a
fee of $39 for each billing period with respect to each account that has
at any time during the related billing cycle an outstanding balance over
the credit limit established for that
account.
|
During
the fourth quarter of 2009, Citibank (South Dakota) has been mailing to certain
cardholders a notice of account change in terms to take effect following
expiration of a 45-day notice period. The notified cardholders will see an
increase in their periodic finance charges and certain fees – e.g., cash advance
and balance transfer fees. For most of these accounts the periodic
finance charge will increase by 4% to 5%. Nearly all notified
cardholders will have the opportunity to earn back a portion of their increase
based on their account activity. Cardholders will have the right to opt out of
the new terms and pay down their current balances under their existing rates and
terms. Most cardholders who opt out also will be able to continue to
use their card to make new purchases at the old rate until the card
expires.
There can be no assurance that periodic finance charges,
fees and other charges will remain at current levels in the
future.
Payments by cardholders on the accounts are processed
and applied first to all minimum amounts due. Payments in excess of
the minimum amount due are applied to balances associated with low periodic
rates before balances associated with higher periodic rates.
Recent
Lump Additions and Removals
Citibank
(South Dakota) may from time to time transfer credit card receivables to the
master trust in lump additions by designating additional accounts to the master
trust. The table below presents the date, amount and percentage of
the master trust portfolio of lump additions made since January 2006 by Citibank
(South Dakota) and in certain cases, prior to its merger on October 1, 2006 into
Citibank (South Dakota), by Citibank (Nevada) (calculated based on the principal
amount of the lump addition and the balance of principal receivables in the
master trust as of the end of its monthly reporting period immediately preceding
the specified lump addition date).
12
Lump
Additions of Receivables Since January 2006
Percentage
|
|||||||
Amount
of
|
Amount
of
|
of
Outstanding
|
|||||
Finance
Charge
|
Principal
|
Total
|
Principal
|
||||
Lump Addition
Date
|
Receivables
|
Receivables
|
Receivables
|
Receivables
|
|||
February
25, 2006
|
$24,569,274
|
$1,878,564,812
|
$1,903,134,086
|
2.55%
|
|||
May
27, 2006
|
$7,383,089
|
$672,979,694
|
$680,362,783
|
0.90%
|
|||
July
29, 2006
|
$10,640,178
|
$880,847,144
|
$891,487,322
|
1.18%
|
|||
October
28, 2006
|
$13,091,964
|
$1,133,884,957
|
$1,146,976,921
|
1.56%
|
|||
January
27, 2007
|
$10,085,067
|
$771,145,898
|
$781,230,965
|
1.06%
|
|||
March
24, 2007
|
$18,095,653
|
$1,330,256,568
|
$1,348,352,221
|
1.83%
|
|||
June
23, 2007
|
$18,279,572
|
$1,453,294,765
|
$1,471,574,337
|
2.01%
|
|||
August
25, 2007
|
$10,179,745
|
$958,015,899
|
$968,195,644
|
1.31%
|
|||
September
29, 2007
|
$7,872,578
|
$1,714,749,869
|
$1,722,622,447
|
2.31%
|
|||
November
24, 2007
|
$6,893,425
|
$940,661,454
|
$947,554,879
|
1.25%
|
|||
March
29, 2008
|
$17,911,489
|
$1,234,692,881
|
$1,252,604,370
|
1.63%
|
|||
May
24, 2008
|
$6,784,413
|
$562,509,400
|
$569,293,813
|
0.73%
|
|||
June
28, 2008
|
$8,369,659
|
$924,879,210
|
$933,248,869
|
1.19%
|
|||
July
26, 2008
|
$4,797,729
|
$314,459,115
|
$319,256,844
|
0.41%
|
|||
September
27, 2008
|
$9,666,066
|
$682,465,956
|
$692,132,022
|
0.89%
|
|||
December
27, 2008
|
$15,951,494
|
$959,774,428
|
$975,725,922
|
1.24%
|
|||
March
28, 2009
|
$30,094,590
|
$1,443,311,222
|
$1,473,405,812
|
1.97%
|
|||
May
30, 2009
|
$4,817,064
|
$227,239,927
|
$232,056,991
|
0.30%
|
|||
June
13, 2009
|
$31,644,334
|
$1,448,182,055
|
$1,479,826,389
|
1.93%
|
|||
September
26, 2009
|
$48,789,788
|
$1,441,935,893
|
$1,490,725,681
|
1.90%
|
The
information in this Form 8-K relating to the loss experience, revenue experience
and cardholder monthly payment rates for the accounts for the nine months ended
September 25, 2009 does not reflect the experience of the accounts designated to
the master trust in the lump addition of receivables made on September 26, 2009.
If the September lump addition accounts were reflected, the loss experience,
revenue experience and cardholder monthly payment rates set forth in their
respective tables above would not be materially different.
Citibank
(South Dakota) removed 102,287 accounts consisting of $214,410,219 of principal
receivables and $3,920,046 of finance charge receivables from the master trust
in a lump removal on August 29, 2009 and removed 540,611 inactive, zero balance
accounts from the master trust in a lump removal on September 19,
2009.
13
GLOSSARY
OF TERMS
"accounts"
means the portfolio of revolving credit card accounts established and
supplemented in accordance with the pooling and servicing
agreement.
"additional
accounts" consist of newly originated eligible accounts to be included as
accounts and accounts relating to any lump additions.
"eligible
accounts" An "eligible account" is defined to mean a revolving
credit card account owned by Citibank (South Dakota), any additional seller or
any other affiliate thereof which, as of the master trust cut-off date in 1991
with respect to an initial account or as of the additional cut-off date with
respect to an additional account: (a) is in existence and maintained by Citibank
(South Dakota), the additional seller or the other affiliate; (b) is payable in
United States dollars; (c) in the case of the initial accounts, has a cardholder
who has provided, as his most recent billing address, an address located in the
United States or its territories or possessions or a military address; (d) has a
cardholder who has not been identified by Citibank (South Dakota), the
additional seller or the other affiliate in its computer files as being involved
in a voluntary or involuntary bankruptcy proceeding; (e) has not been identified
as an account with respect to which the related card has been lost or stolen;
(f) has not been sold or pledged to any other party except for any sale to any
seller, additional seller or other affiliate; (g) does not have receivables
which have been sold or pledged to any other party other than any sale to any
seller, additional seller or other affiliate; and (h) in the case of the initial
accounts, is a VISA or MasterCard revolving credit card
account.
"finance
charge receivables" consist of periodic finance charges, annual
membership fees, cash advance fees and late charges on amounts charged for
merchandise and services and some other fees designated by Citibank (South
Dakota), as well as amounts, if any, representing a discount from the face
amount of principal receivables that are treated as finance charge receivables
in accordance with the pooling and servicing agreement. In addition,
some interchange attributed to cardholder charges for merchandise and services
in the accounts will be treated as finance charge
receivables.
"lump
addition" means the designation of additional eligible accounts to be
included as accounts pursuant to Section 2.09(a) or (b) of the pooling and
servicing agreement.
"master
trust" means Citibank Credit Card Master Trust I.
"pooling
and servicing agreement" means the Amended and Restated Pooling and
Servicing Agreement dated as of October 5, 2001, between Citibank (South
Dakota), National Association, as Seller, Servicer, and successor by merger to
Citibank (Nevada), National Association, as Seller, and Deutsche Bank Trust
Company Americas, as trustee, including all amendments
thereto.
"principal
receivables" consist of amounts charged by cardholders for merchandise
and services, amounts advanced to cardholders as cash advances and some fees
billed to cardholders on the accounts, minus the portion, if any, of principal
receivables which represents a discount from the face amount thereof that
Citibank (South Dakota) has designated to be treated as finance charge
receivables in accordance with the pooling and servicing
agreement.
"receivables"
means all amounts shown on the servicer's records as amounts payable by the
person or persons obligated to make payments with respect to the
accounts.
"Receivables
Outstanding" as defined on page 7.
14
# #
#
Certain statements contained herein are "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act.
These statements are based on the current expectations of Citibank (South
Dakota), National Association and are subject to uncertainty and changes in
circumstances. Forward-looking statements involve risks, uncertainties and
assumptions. Actual results may differ materially from those
expressed in these forward-looking statements. In particular,
forward-looking statements contained herein are based on certain estimates of
cardholder preferences, industry competition, general economic conditions and
other matters which cannot be predicted with certainty. You should
not put undue reliance on any forward-looking
statements.
15
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
CITIBANK (SOUTH DAKOTA),
NATIONAL ASSOCIATION,
|
as
Depositor of Citibank Credit Card Issuance
Trust
|
|
and
Citibank Credit Card Master Trust I
|
(Registrant)
By: /s/ Douglas
C. Morrison
Douglas
C. Morrison
Vice
President
Dated: November
19, 2009
16