Discover 2009 Annual Report Download - page 119

The following table provides changes in the Company’s allowance for other consumer 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.................................................................................................................................... $ 56,774 $ 9,139 $ 2,755
Additions:
Provision for loan losses ....................................................................................................................................... 122,173 55,108 7,255
Deductions:
Charge-offs........................................................................................................................................................ (69,080) (8,065) (1,882)
Recoveries.......................................................................................................................................................... 946 592 1,011
Net charge-offs................................................................................................................................................ (68,134) (7,473) (871)
Balance at end of year ............................................................................................................................................ $110,813 $56,774 $ 9,139
Information regarding net charge-offs of interest and fee revenues on credit card loans is as follows (dollars in
thousands):
For the Years Ended
November 30,
2009 2008 2007
Interest and fees accrued subsequently charged off, net of recoveries (recorded as a reduction of interest income)............. $465,283 $257,543 $175,383
Fees accrued subsequently charged off, net of recoveries (recorded as a reduction to other income)................................ $176,662 $108,976 $ 78,100
Information regarding loan receivables that are over 90 days delinquent and accruing interest and loan receivables
that are not accruing interest is as follows (dollars in thousands):
November 30,
2009 2008
Loans over 90 days delinquent and accruing interest.................................................................................................................. $522,190 $444,324
Loans not accruing interest..................................................................................................................................................... $190,086 $173,123
Geographical Distribution of Loans
The Company originates credit card and other consumer loans throughout the United States. The geographic
distribution of the Company’s loan receivables was as follows (dollars in thousands):
November 30, 2009 November 30, 2008
Loan
Receivables
Percentage
of Total
Loan
Receivables
Percentage
of Total
California ........................................................................................................................ $ 2,394,844 10.1% $ 2,650,647 10.5%
Texas .............................................................................................................................. 1,757,449 7.4 1,880,272 7.5
New York ........................................................................................................................ 1,560,028 6.6 1,638,237 6.5
Florida ............................................................................................................................ 1,485,592 6.3 1,636,415 6.5
Illinois ............................................................................................................................. 1,248,441 5.3 1,309,687 5.2
Pennsylvania .................................................................................................................... 1,188,116 5.0 1,171,156 4.6
Ohio............................................................................................................................... 987,649 4.2 1,067,503 4.2
New Jersey ...................................................................................................................... 860,802 3.6 894,581 3.5
Michigan ......................................................................................................................... 768,993 3.3 877,944 3.5
Georgia .......................................................................................................................... 725,391 3.1 770,987 3.1
Other states...................................................................................................................... 10,647,779 45.1 11,319,182 44.9
Loan receivables ............................................................................................................ $23,625,084 100.0% $25,216,611 100.0%
-107-