Attached files
file | filename |
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EX-4.1 - SYNCHRONYSERIES INDENTURE SUPPLEMENT - Synchrony Card Funding, LLC | tv503672_ex4-1.htm |
EX-4.6 - CLASS D(2018-1) TERMS DOCUMENT - Synchrony Card Funding, LLC | tv503672_ex4-6.htm |
EX-4.5 - CLASS C(2018-1) TERMS DOCUMENT - Synchrony Card Funding, LLC | tv503672_ex4-5.htm |
EX-4.4 - CLASS B(2018-1) TERMS DOCUMENT - Synchrony Card Funding, LLC | tv503672_ex4-4.htm |
EX-4.3 - RISK RETENTION AGREEMENT - Synchrony Card Funding, LLC | tv503672_ex4-3.htm |
EX-4.2 - CLASS A(2018-1) TERMS DOCUMENT - Synchrony Card Funding, LLC | tv503672_ex4-2.htm |
8-K - 8-K - Synchrony Card Funding, LLC | tv503672_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% |
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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 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% |
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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.