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): February 22,
2010
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 (365/367 for the year ended December 28, 2009, 366/366 for the
year ended December 26, 2008 and 365/365 for the year ended December 26,
2007).
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)
Year
Ended
December 28, 2009
|
Year
Ended
December 26, 2008
|
Year
Ended
December 26,
2007
|
Average
Principal Receivables Outstanding
|
$75,724,189
|
$76,956,779
|
$73,675,752
|
Gross
Charge-Offs
|
$8,093,586
|
$5,182,543
|
$3,577,964
|
Recoveries
|
$580,545
|
$569,718
|
$670,501
|
Net
Losses
|
$7,513,042
|
$4,612,825
|
$2,907,463
|
Net
Losses as a Percentage of Average Principal Receivables
Outstanding
|
9.87%
|
5.99%
|
3.95%
|
Net losses as a percentage of gross
charge-offs for each of the years ended December 28, 2009, December 26, 2008 and
December 26, 2007 were 92.83%, 89.01% and 81.26%, 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 36 trust monthly reporting periods from
January 2007 through December 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 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
December 27, 2009
|
As
of
December 28, 2008
|
As
of
December 30, 2007
|
|
Number
of Days Delinquent
|
Delinquent
Amount
|
Percentage
|
Delinquent
Amount
|
Percentage
|
Delinquent
Amount
|
Percentage
|
||||||||||||||||
Up
to 34 days
|
$2,501,832
|
3.24%
|
$2,707,226
|
3.49%
|
$2,485,572
|
3.34%
|
||||||||||||||||
35
to 64 days
|
1,175,684
|
1.52
|
1,187,447
|
1.53
|
867,581
|
1.17
|
||||||||||||||||
65
to 94 days
|
972,112
|
1.26
|
919,345
|
1.18
|
637,074
|
0.86
|
||||||||||||||||
95
to 124 days
|
869,279
|
1.13
|
744,767
|
0.96
|
537,562
|
0.72
|
||||||||||||||||
125
to 154 days
|
791,797
|
1.03
|
648,960
|
0.84
|
433,883
|
0.58
|
||||||||||||||||
155
to 184 days
|
715,581
|
0.93
|
543,247
|
0.70
|
392,882
|
0.53
|
||||||||||||||||
Total
|
$7,026,285
|
9.11%
|
$6,750,992
|
8.70%
|
$5,354,554
|
7.20%
|
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 2009 compared
to 2007, 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 each
of the years ended December 28, 2009, December 26, 2008 and December 26, 2007
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 (365/367 for the year
ended December 28, 2009, 366/366 for the year ended December 26, 2008 and
365/365 for the year ended December 26, 2007).
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)
Year
Ended
December 28, 2009
|
Year
Ended
December 26, 2008
|
Year
Ended
December 26, 2007
|
|
Finance
Charges and Fees Paid
|
$13,692,050
|
$12,135,240
|
$12,870,801
|
Average
Revenue Yield
|
17.98%
|
15.77%
|
17.47%
|
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 first trust monthly reporting period in which the
discount percentage reaches zero.
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 December 27, 2009, 45.21% of the
accounts had a credit balance or otherwise had no payment due, 22.50% of the
cardholders paid their entire outstanding balance, 4.72% of the cardholders made
only the minimum payment due, and the remaining 27.57% 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
Year
Ended
December 28, 2009
|
Year
Ended
December 26, 2008
|
Year
Ended
December 26, 2007
|
|
Lowest
Month
|
16.75%
|
16.93%
|
20.09%
|
Highest
Month
|
19.87%
|
23.36%
|
24.14%
|
Average
of the Months in the Period
|
18.32%
|
20.48%
|
22.20%
|
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 December 27, 2009 included
$2,046,595,274 of finance charge receivables and $78,344,433,464 of principal
receivables – which
amounts include overdue finance charge receivables and overdue principal
receivables. As of December 27, 2009, there were 32,382,213 accounts. Included
within the accounts are inactive accounts that have no balance. The accounts had
an average principal receivable balance of $2,419 and an average credit limit of
$12,481. The average principal receivable balance in the accounts as a
percentage of the average credit limit with respect to the accounts was
approximately 19%. Approximately 91% of the accounts were opened before December
2007.
As of December 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 December 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
|
13.75%
|
14.77%
|
|
New
York
|
10.76%
|
9.68%
|
|
Texas
|
6.93%
|
8.46%
|
|
Florida
|
6.55%
|
6.33%
|
|
Illinois
|
5.19%
|
5.66%
|
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
December 27, 2009, approximately 1.94% 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 236,809 small business credit
card accounts designated to the master trust as of December 27, 2009 included
$32,987,973 of finance charge receivables and $1,523,838,471 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 December 27, 2009, the small
business credit card accounts designated to the master trust had an average
principal receivable balance of $6,435 and an average credit limit of $30,176.
The average principal receivable balance in the accounts as a percentage of the
average credit limit with respect to the accounts was approximately 21%.
Approximately 82.73% of the accounts were opened before December 2007. Of the
accounts, as of December 27, 2009, approximately 25.50% of the receivables
related to obligors with billing addresses in California and 16.14% in
Texas. No other state represents more than 10% of the outstanding
receivables. As of December 27, 2009, 83.97% of the receivables in
the accounts related to obligors whose FICO score is greater than 660, and
93.90% 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 December 27, 2009, 9.19% of the small business credit card
accounts had a credit balance or otherwise had no payment due, 60.65% of the
obligors paid their entire outstanding balance, 2.24% of the obligors made only
the minimum payment due, and the remaining 27.93% 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
December 31, 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 December 31, 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 December 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…........................…..
|
263,871
|
0.81%
|
$ (57,709,065)
|
-0.07%
|
||||
No
Balance ….............................…..
|
14,531,802
|
44.88
|
0
|
0.00
|
||||
Less
than or equal to $500.00.............
|
4,239,701
|
13.09
|
812,075,686
|
1.01
|
||||
$500.01
to $1,000.00..........................
|
1,935,846
|
5.98
|
1,427,096,899
|
1.78
|
||||
$1,000.01
to $2,000.00.......................
|
2,473,041
|
7.64
|
3,627,083,444
|
4.51
|
||||
$2,000.01
to $3,000.00.......................
|
1,670,494
|
5.16
|
4,137,997,024
|
5.15
|
||||
$3,000.01
to $4,000.00...............…....
|
1,218,361
|
3.76
|
4,241,732,314
|
5.28
|
||||
$4,000.01
to $5,000.00.......................
|
941,981
|
2.91
|
4,226,768,444
|
5.26
|
||||
$5,000.01
to $6,000.00....................
|
735,117
|
2.27
|
4,032,966,132
|
5.02
|
||||
$6,000.01
to $7,000.00.......................
|
604,785
|
1.87
|
3,924,245,261
|
4.88
|
||||
$7,000.01
to $8,000.00.......................
|
499,624
|
1.54
|
3,740,989,930
|
4.65
|
||||
$8,000.01
to $9,000.00.......................
|
429,457
|
1.33
|
3,646,138,904
|
4.54
|
||||
$9,000.01
to $10,000.00.....................
|
368,647
|
1.14
|
3,499,698,355
|
4.35
|
||||
$10,000.01
to $15,000.00...................
|
1,163,713
|
3.59
|
14,214,894,048
|
17.68
|
||||
$15,000.01
to $20,000.00...................
|
625,755
|
1.93
|
10,821,237,603
|
13.46
|
||||
Over
$20,000.00.................………...
|
680,018
|
2.10
|
18,095,813,760
|
22.50
|
||||
Total...............................................
|
32,382,213
|
100.00%
|
$80,391,028,738
|
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............
|
1,742,102
|
5.38%
|
$ 87,693,111
|
0.11%
|
|||
$500.01
to $1,000.00.........................
|
775,332
|
2.39
|
210,157,237
|
0.26
|
|||
$1,000.01
to $2,000.00......................
|
1,613,392
|
4.98
|
856,868,795
|
1.07
|
|||
$2,000.01
to $3,000.00......................
|
1,509,724
|
4.66
|
1,360,461,307
|
1.69
|
|||
$3,000.01
to $4,000.00..........…........
|
1,392,183
|
4.30
|
1,518,592,727
|
1.89
|
|||
$4,000.01
to $5,000.00......................
|
1,659,336
|
5.12
|
1,939,906,373
|
2.41
|
|||
$5,000.01
to $6,000.00......................
|
1,441,305
|
4.45
|
1,814,790,238
|
2.26
|
|||
$6,000.01
to $7,000.00......................
|
1,475,753
|
4.56
|
2,015,607,008
|
2.51
|
|||
$7,000.01
to $8,000.00......................
|
1,658,154
|
5.12
|
2,093,573,713
|
2.60
|
|||
$8,000.01
to $9,000.00......................
|
1,573,820
|
4.86
|
2,336,648,720
|
2.91
|
|||
$9,000.01
to $10,000.00....................
|
1,668,701
|
5.15
|
2,534,052,643
|
3.15
|
|||
$10,000.01
to $15,000.00..................
|
6,150,344
|
18.99
|
12,002,516,995
|
14.93
|
|||
$15,000.01
to $20,000.00..................
|
3,330,984
|
10.29
|
10,423,916,364
|
12.97
|
|||
Over
$20,000.00......…......................
|
6,391,083
|
19.75
|
41,196,243,507
|
51.24
|
|||
Total..........................................
|
32,382,213
|
100.00%
|
$80,391,028,738
|
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…..........................................
|
31,392,938
|
96.94%
|
$73,364,743,891
|
91.27%
|
|||
Up
to 34 days delinquent...................
|
421,653
|
1.30
|
2,501,832,182
|
3.11
|
|||
35
to 64 days delinquent..................
|
163,749
|
0.51
|
1,175,683,536
|
1.46
|
|||
65
to 94 days delinquent..................
|
124,867
|
0.39
|
972,112,306
|
1.21
|
|||
95
to 124 days delinquent..................
|
105,783
|
0.33
|
869,278,724
|
1.08
|
|||
125
to 154 days delinquent...............
|
91,779
|
0.28
|
791,796,756
|
0.98
|
|||
155
to 184 days delinquent................
|
81,444
|
0.25
|
715,581,343
|
0.89
|
|||
Total.........................................
|
32,382,213
|
100.00%
|
$80,391,028,738
|
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..........
|
477,525
|
1.47%
|
$ 1,015,244,644
|
1.26%
|
|||||
Over
6 months to 12 months.............
|
504,179
|
1.56
|
1,133,789,212
|
1.41
|
|||||
Over
12 months to 24 months...........
|
2,093,383
|
6.46
|
4,233,477,661
|
5.27
|
|||||
Over
24 months to 36 months...........
|
2,417,928
|
7.47
|
4,346,383,983
|
5.41
|
|||||
Over
36 months to 48 months...........
|
2,322,944
|
7.17
|
4,523,321,025
|
5.63
|
|||||
Over
48 months to 60 months...........
|
2,733,552
|
8.44
|
4,608,566,109
|
5.73
|
|||||
Over
60 months.................................
|
21,832,702
|
67.43
|
60,530,246,104
|
75.29
|
|||||
Total.........................................
|
32,382,213
|
100.00%
|
$80,391,028,738
|
100.00%
|
9
The
following table sets forth the composition of accounts by FICO®*
score as of December 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
December 27, 2009, 72.81% 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
........……………………………....
|
6,002,163
|
18.53%
|
$ 470,668,750
|
0.59%
|
|||
001
to 599 ……………....................
|
2,003,611
|
6.19
|
9,906,667,010
|
12.31
|
|||
600
to 639 ……………....................
|
1,201,639
|
3.71
|
5,874,361,211
|
7.31
|
|||
640
to 660 …………….................
|
1,035,279
|
3.20
|
5,602,607,489
|
6.97
|
|||
661
to 679 ……………....................
|
1,232,081
|
3.80
|
7,026,111,797
|
8.74
|
|||
680
to 699 …………........................
|
1,627,691
|
5.03
|
8,948,736,606
|
11.13
|
|||
700
to 719 …………........................
|
2,051,783
|
6.34
|
10,096,271,248
|
12.56
|
|||
720
to 739 …………........................
|
2,292,838
|
7.08
|
9,170,749,973
|
11.41
|
|||
740
to 759 …………........................
|
2,606,201
|
8.05
|
7,738,392,044
|
9.63
|
|||
760
to 800 ……………....................
|
6,836,902
|
21.11
|
10,929,298,944
|
13.59
|
|||
801
and above ........…......................
|
5,492,025
|
16.96
|
4,627,163,666
|
5.76
|
|||
Total
........................................
|
32,382,213
|
100.00%
|
$80,391,028,738
|
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
December 27, 2009, less than 33% 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.
In
general, each month billing statements are sent to cardholders. 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 10.74% to 21.74%. A small
portion of the credit card accounts have a non-variable periodic finance
charge imposed on purchase balances ranging from 13.99% to
24.99%;
|
·
|
the
periodic finance charge imposed on balances in most credit card accounts
for cash advances is the sum of the Prime Rate and 21.99%;
and
|
·
|
if
a cardholder fails to make a payment by the due date under their credit
card agreement, the periodic finance charge assessed on new transactions
can be increased up to the sum of the Prime Rate and 26.74%, with 45 days
advance notice. If a cardholder fails to make a payment for
more than 60 days after the due date under their credit card agreement,
the periodic finance charge assessed on existing balances in their account
can be increased up to the sum of the Prime Rate and 26.74%, with 45 days
advance notice.
|
11
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.
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 5.0% of the amount of the
cash advance, subject to a minimum fee of
$10;
|
·
|
a
balance transfer fee of 5.0% of the amount transferred to the account,
subject to a minimum fee of $10, 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; and
|
·
|
a
stop payment fee of $39.
|
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 generally
are applied to balances associated with higher periodic rates before balances
associated with lower periodic rates.
Recent
Lump Additions and Removal
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 those lump additions made since January 2007
(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 2007
Percentage
|
|||||||
Amount
of
|
Amount
of
|
of
Outstanding
|
|||||
Finance
Charge
|
Principal
|
Total
|
Principal
|
||||
Lump Addition Date
|
Receivables
|
Receivables
|
Receivables
|
Receivables
|
|||
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%
|
|||
December
26, 2009
|
$27,034,270
|
$1,389,298,732
|
$1,416,333,002
|
1.83%
|
Citibank
(South Dakota) removed 1,060,105 inactive, zero balance accounts from the master
trust in a lump removal on December 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: February
22, 2010
16