Capital One 1996 Annual Report Download - page 29

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Table 5 Delinquencies(1)
December 31
1996 1995 1994 1993 1992
% of % of % of % of % of
Total Total Total Total Total
(dollars in thousands) Loans Loans Loans Loans Loans Loans Loans Loans Loans Loans
Reported:
Loans outstanding $ 4,343,902 100.00% $ 2,921,679 100.00% $2,228,455 100.00% $1,862,744 100.00% $1,304,560 100.00%
Loans delinquent:
30-59 days 96,819 2.23 65,711 2.25 29,032 1.30 19,186 1.03 21,525 1.65
60-89 days 55,679 1.28 38,311 1.31 14,741 .66 10,618 .57 11,089 .85
90 or more days 111,791 2.57 79,694 2.73 24,445 1.10 18,255 .98 23,352 1.79
Total $ 264,289 6.08% $ 183,716 6.29% $ 68,218 3.06% $ 48,059 2.58% $ 55,966 4.29%
Managed:
Loans outstanding $12,803,969 100.00% $10,445,480 100.00% $7,378,455 100.00% $4,832,400 100.00% $1,984,560 100.00%
Loans delinquent:
30-59 days 279,787 2.19 165,306 1.58 90,733 1.23 46,391 .96 40,088 2.02
60-89 days 162,668 1.27 92,665 .89 45,277 .61 25,128 .52 21,433 1.08
90 or more days 356,700 2.78 181,243 1.73 81,720 1.11 43,975 .91 43,661 2.20
Total $ 799,155 6.24% $ 439,214 4.20% $ 217,730 2.95% $ 115,494 2.39% $ 105,182 5.30%
(1) Includes consumer loans held for securitization.
Capital One 27
Delinquencies
Table 5 shows the Company’s consumer loan delinquency
trends for the periods presented as reported for finan-
cial statement purposes and on a managed basis. The
entire balance of an account is contractually delinquent if
the minimum payment is not received by the billing date.
However, the Company generally continues to accrue inter-
est until the loan is charged off. Delinquencies not only
have the potential to impact earnings in the form of net
charge-offs, they also are costly in terms of the personnel
and other resources dedicated to resolving them.
The 30-plus day delinquency rate for the reported con-
sumer loan portfolio decreased to 6.08% as of December 31,
1996, from 6.29% as of December 31, 1995. The modest
decrease in 1996 reported delinquency reflects the securiti-
zation of certain second generation receivables in 1996.
The delinquency rate for the total managed consumer
loan portfolio was 6.24% of related loans as of December
31, 1996, up from 4.20% as of December 31, 1995, while the
dollar amount of delinquent managed consumer loans
increased approximately $359.9 million. The managed
portfolio’s delinquency rate as of December 31, 1996 princi-
pally reflected the continued seasoning of accounts and
consumer loan balances, the increased presence of second
generation products and general economic trends in
consumer credit performance.
‘94
Managed Net Charge-Off
and 30+ Day
Delinquency Rate
‘95 ‘96
■ Net Charge-off Rate
■ Delinquency Rate
1.48%
2.25%
4.24%
2.95%
4.20%
6.24%