Discover 2015 Annual Report Download - page 119

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The following table presents interest on investment securities (dollars in millions):
For the Years Ended December 31,
2015 2014 2013
Taxable interest ................................................................................................................... $ 49 $ 66 $ 73
Tax exempt interest .............................................................................................................. — 1 1
Total income from investment securities ............................................................................... $ 49 $ 67 $ 74
Other Investments
As a part of the Company's community reinvestment initiatives, the Company has made equity investments in
certain limited partnerships and limited liability companies that finance the construction and rehabilitation of affordable
rental housing, as well as stimulate economic development in low to moderate income communities. These investments
are accounted for using the equity method of accounting, and are recorded within other assets, and the related
commitment for future investments is recorded in accrued expenses and other liabilities within the consolidated
statements of financial condition. The portion of each investment's operating results allocable to the Company is
recorded in other expense within the consolidated statements of income. The Company earns a return primarily through
the receipt of tax credits allocated to the affordable housing projects and the community revitalization projects. These
investments are not consolidated as the Company does not have a controlling financial interest in the entities. As of
December 31, 2015 and 2014, the Company had outstanding investments in these entities of $328 million and $325
million, respectively, and related contingent liabilities of $57 million and $51 million, respectively. Of the above
outstanding equity investments, the Company had $238 million and $201 million, respectively, of investments related to
affordable housing projects, which had $57 million and $38 million related contingent liabilities as of December 31,
2015 and 2014, respectively.
5. Loan Receivables
The Company has three loan portfolio segments: credit card loans, other loans and PCI student loans.
The Company's classes of receivables within the three portfolio segments are depicted in the table below (dollars
in millions):
December 31,
2015 2014
Loan receivables
Credit card loans(1) .................................................................................................................................... $ 57,896 $ 56,128
Other loans
Personal loans ....................................................................................................................................... 5,490 5,007
Private student loans .............................................................................................................................. 5,647 4,850
Mortgage loans held for sale(2) ................................................................................................................ — 122
Other(3) ................................................................................................................................................. 236 202
Total other loans ................................................................................................................................ 11,373 10,181
Purchased credit-impaired loans(4) ............................................................................................................... 3,116 3,660
Total loan receivables ........................................................................................................................ 72,385 69,969
Allowance for loan losses .............................................................................................................................. (1,869) (1,746)
Net loan receivables ...................................................................................................................... $ 70,516 $ 68,223
(1) Amounts include $21.6 billion and $21.7 billion underlying investors’ interest in trust debt at December 31, 2015 and 2014, respectively, and $7.2 billion and $8.6
billion in seller's interest at December 31, 2015 and 2014, respectively. See Note 6: Credit Card and Student Loan Securitization Activities for further information.
(2) On June 16, 2015, the Company announced that it was closing the mortgage origination business, as disclosed in Note 3: Business Dispositions. Pursuant to that
announcement, the Company sold all mortgage loans held for sale in its portfolio and ceased originating new mortgages.
(3) Other includes home equity loans.
(4) Amounts include $1.7 billion and $2.0 billion of loans pledged as collateral against the notes issued from the Student Loan Corporation ("SLC") securitization trusts
at December 31, 2015 and 2014, respectively. See Note 6: Credit Card and Student Loan Securitization Activities.