Discover 2009 Annual Report Download - page 118

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The following table presents interest and dividends on investment securities (dollars in thousands):
For the Years Ended
November 30,
2009 2008 2007
Taxable interest....................................................................................................................................................... $65,959 $48,787 $ 8,125
Tax exempt interest .................................................................................................................................................. 2,735 2,489 2,197
Dividends............................................................................................................................................................... — 69 180
Total income from investment securities .................................................................................................................... $68,694 $51,345 $10,502
5. Loan Receivables
Loan receivables consist of the following (dollars in thousands):
November 30,
2009 2008
Credit card loans:
Discover Card(1) ...................................................................................................................................................... $19,826,153 $23,348,134
Discover Business Card............................................................................................................................................. 404,149 466,173
Total credit card loans........................................................................................................................................... 20,230,302 23,814,307
Other consumer loans:
Personal loans......................................................................................................................................................... 1,394,379 1,028,093
Student loans .......................................................................................................................................................... 1,932,266 299,929
Other .................................................................................................................................................................... 68,137 74,282
Total other consumer loans .................................................................................................................................... 3,394,782 1,402,304
Total loan receivables............................................................................................................................................ 23,625,084 25,216,611
Allowance for loan losses ............................................................................................................................................. (1,757,899) (1,374,585)
Net loan receivables ............................................................................................................................................. $21,867,185 $23,842,026
(1) Amounts include $9.9 billion and $14.8 billion of the Company’s seller’s interest in credit card securitizations at November 30, 2009 and 2008, respectively. See Note 6: Credit Card
Securitization Activities for further information.
The following table provides changes in the Company’s allowance for credit card loan losses for the years ended
November 30, 2009, 2008 and 2007 (dollars in thousands):
For the Years Ended November 30,
2009 2008 2007
Balance at beginning of year ...................................................................................................................... $ 1,317,811 $ 750,786 $ 701,162
Additions:
Provision for loan losses .......................................................................................................................... 2,240,232 1,540,507 726,632
Deductions:
Charge-offs........................................................................................................................................... (2,096,573) (1,139,176) (837,210)
Recoveries ............................................................................................................................................ 185,616 165,694 160,202
Net charge-offs .................................................................................................................................. (1,910,957) (973,482) (677,008)
Balance at end of year ............................................................................................................................... $ 1,647,086 $ 1,317,811 $ 750,786
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