SYNCHRONY FINANCIAL | |||||||||||||||||||||||||
FINANCIAL SUMMARY | |||||||||||||||||||||||||
(unaudited, in millions, except per share statistics) | |||||||||||||||||||||||||
Quarter Ended | |||||||||||||||||||||||||
Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | 1Q'20 vs. 1Q'19 | ||||||||||||||||||||
EARNINGS | |||||||||||||||||||||||||
Net interest income | $ | 3,890 | $ | 4,029 | $ | 4,389 | $ | 4,155 | $ | 4,226 | $ | (336 | ) | (8.0 | )% | ||||||||||
Retailer share arrangements | (926 | ) | (1,029 | ) | (1,016 | ) | (859 | ) | (954 | ) | 28 | (2.9 | )% | ||||||||||||
Provision for credit losses | 1,677 | 1,104 | 1,019 | 1,198 | 859 | 818 | 95.2 | % | |||||||||||||||||
Net interest income, after retailer share arrangements and provision for credit losses | 1,287 | 1,896 | 2,354 | 2,098 | 2,413 | (1,126 | ) | (46.7 | )% | ||||||||||||||||
Other income | 97 | 104 | 85 | 90 | 92 | 5 | 5.4 | % | |||||||||||||||||
Other expense | 1,002 | 1,079 | 1,064 | 1,059 | 1,043 | (41 | ) | (3.9 | )% | ||||||||||||||||
Earnings before provision for income taxes | 382 | 921 | 1,375 | 1,129 | 1,462 | (1,080 | ) | (73.9 | )% | ||||||||||||||||
Provision for income taxes | 96 | 190 | 319 | 276 | 355 | (259 | ) | (73.0 | )% | ||||||||||||||||
Net earnings | $ | 286 | $ | 731 | $ | 1,056 | $ | 853 | $ | 1,107 | $ | (821 | ) | (74.2 | )% | ||||||||||
Net earnings available to common stockholders | $ | 275 | $ | 731 | $ | 1,056 | $ | 853 | $ | 1,107 | $ | (832 | ) | (75.2 | )% | ||||||||||
COMMON SHARE STATISTICS | |||||||||||||||||||||||||
Basic EPS | $ | 0.45 | $ | 1.15 | $ | 1.60 | $ | 1.25 | $ | 1.57 | $ | (1.12 | ) | (71.3 | )% | ||||||||||
Diluted EPS | $ | 0.45 | $ | 1.15 | $ | 1.60 | $ | 1.24 | $ | 1.56 | $ | (1.11 | ) | (71.2 | )% | ||||||||||
Dividend declared per share | $ | 0.22 | $ | 0.22 | $ | 0.22 | $ | 0.21 | $ | 0.21 | $ | 0.01 | 4.8 | % | |||||||||||
Common stock price | $ | 16.09 | $ | 36.01 | $ | 34.09 | $ | 34.67 | $ | 31.90 | $ | (15.81 | ) | (49.6 | )% | ||||||||||
Book value per share | $ | 19.27 | $ | 23.31 | $ | 23.13 | $ | 22.03 | $ | 21.35 | $ | (2.08 | ) | (9.7 | )% | ||||||||||
Tangible common equity per share(1) | $ | 15.35 | $ | 19.50 | $ | 19.68 | $ | 18.60 | $ | 17.96 | $ | (2.61 | ) | (14.5 | )% | ||||||||||
Beginning common shares outstanding | 615.9 | 653.7 | 668.9 | 688.8 | 718.8 | (102.9 | ) | (14.3 | )% | ||||||||||||||||
Issuance of common shares | — | — | — | — | — | — | — | % | |||||||||||||||||
Stock-based compensation | 0.9 | 0.6 | 0.4 | 1.2 | 0.9 | — | — | % | |||||||||||||||||
Shares repurchased | (33.6 | ) | (38.4 | ) | (15.6 | ) | (21.1 | ) | (30.9 | ) | (2.7 | ) | 8.7 | % | |||||||||||
Ending common shares outstanding | 583.2 | 615.9 | 653.7 | 668.9 | 688.8 | (105.6 | ) | (15.3 | )% | ||||||||||||||||
Weighted average common shares outstanding | 604.9 | 633.7 | 658.3 | 683.6 | 706.3 | (101.4 | ) | (14.4 | )% | ||||||||||||||||
Weighted average common shares outstanding (fully diluted) | 607.4 | 637.7 | 661.7 | 686.5 | 708.9 | (101.5 | ) | (14.3 | )% | ||||||||||||||||
(1) Tangible Common Equity ("TCE") is a non-GAAP measure. For corresponding reconciliation of TCE to a GAAP financial measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures. | |||||||||||||||||||||||||
SYNCHRONY FINANCIAL | ||||||||||||||||||||||||||
SELECTED METRICS | ||||||||||||||||||||||||||
(unaudited, $ in millions) | ||||||||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||||||||
Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | 1Q'20 vs. 1Q'19 | |||||||||||||||||||||
PERFORMANCE METRICS | ||||||||||||||||||||||||||
Return on assets(1) | 1.1 | % | 2.7 | % | 3.9 | % | 3.3 | % | 4.3 | % | (3.2 | )% | ||||||||||||||
Return on equity(2) | 9.1 | % | 19.0 | % | 28.3 | % | 23.1 | % | 30.4 | % | (21.3 | )% | ||||||||||||||
Return on tangible common equity(3) | 11.6 | % | 23.0 | % | 33.4 | % | 27.4 | % | 35.8 | % | (24.2 | )% | ||||||||||||||
Net interest margin(4) | 15.15 | % | 15.01 | % | 16.29 | % | 15.75 | % | 16.08 | % | (0.93 | )% | ||||||||||||||
Efficiency ratio(5) | 32.7 | % | 34.8 | % | 30.8 | % | 31.3 | % | 31.0 | % | 1.7 | % | ||||||||||||||
Other expense as a % of average loan receivables, including held for sale | 4.77 | % | 5.01 | % | 4.66 | % | 4.78 | % | 4.71 | % | 0.06 | % | ||||||||||||||
Effective income tax rate | 25.1 | % | 20.6 | % | 23.2 | % | 24.4 | % | 24.3 | % | 0.8 | % | ||||||||||||||
CREDIT QUALITY METRICS | ||||||||||||||||||||||||||
Net charge-offs as a % of average loan receivables, including held for sale | 5.36 | % | 5.15 | % | 5.35 | % | 6.01 | % | 6.06 | % | (0.70 | )% | ||||||||||||||
30+ days past due as a % of period-end loan receivables(6) | 4.24 | % | 4.44 | % | 4.47 | % | 4.43 | % | 4.92 | % | (0.68 | )% | ||||||||||||||
90+ days past due as a % of period-end loan receivables(6) | 2.10 | % | 2.15 | % | 2.07 | % | 2.16 | % | 2.51 | % | (0.41 | )% | ||||||||||||||
Net charge-offs | $ | 1,125 | $ | 1,109 | $ | 1,221 | $ | 1,331 | $ | 1,344 | $ | (219 | ) | (16.3 | )% | |||||||||||
Loan receivables delinquent over 30 days(6) | $ | 3,500 | $ | 3,874 | $ | 3,723 | $ | 3,625 | $ | 3,957 | $ | (457 | ) | (11.5 | )% | |||||||||||
Loan receivables delinquent over 90 days(6) | $ | 1,735 | $ | 1,877 | $ | 1,723 | $ | 1,768 | $ | 2,019 | $ | (284 | ) | (14.1 | )% | |||||||||||
Allowance for credit losses (period-end) | $ | 9,175 | $ | 5,602 | $ | 5,607 | $ | 5,809 | $ | 5,942 | $ | 3,233 | 54.4 | % | ||||||||||||
Allowance coverage ratio(7) | 11.13 | % | 6.42 | % | 6.74 | % | 7.10 | % | 7.39 | % | 3.74 | % | ||||||||||||||
BUSINESS METRICS | ||||||||||||||||||||||||||
Purchase volume(8)(9) | $ | 32,042 | $ | 40,212 | $ | 38,395 | $ | 38,291 | $ | 32,513 | $ | (471 | ) | (1.4 | )% | |||||||||||
Period-end loan receivables | $ | 82,469 | $ | 87,215 | $ | 83,207 | $ | 81,796 | $ | 80,405 | $ | 2,064 | 2.6 | % | ||||||||||||
Credit cards | $ | 79,832 | $ | 84,606 | $ | 79,788 | $ | 78,446 | $ | 77,251 | $ | 2,581 | 3.3 | % | ||||||||||||
Consumer installment loans | $ | 1,390 | $ | 1,347 | $ | 2,050 | $ | 1,983 | $ | 1,860 | $ | (470 | ) | (25.3 | )% | |||||||||||
Commercial credit products | $ | 1,203 | $ | 1,223 | $ | 1,317 | $ | 1,328 | $ | 1,256 | $ | (53 | ) | (4.2 | )% | |||||||||||
Other | $ | 44 | $ | 39 | $ | 52 | $ | 39 | $ | 38 | $ | 6 | 15.8 | % | ||||||||||||
Average loan receivables, including held for sale | $ | 84,428 | $ | 85,376 | $ | 90,556 | $ | 88,792 | $ | 89,903 | $ | (5,475 | ) | (6.1 | )% | |||||||||||
Period-end active accounts (in thousands)(9)(10) | 68,849 | 75,471 | 77,094 | 76,065 | 74,812 | (5,963 | ) | (8.0 | )% | |||||||||||||||||
Average active accounts (in thousands)(9)(10) | 72,078 | 73,734 | 76,695 | 75,525 | 77,132 | (5,054 | ) | (6.6 | )% | |||||||||||||||||
LIQUIDITY | ||||||||||||||||||||||||||
Liquid assets | ||||||||||||||||||||||||||
Cash and equivalents | $ | 13,704 | $ | 12,147 | $ | 11,461 | $ | 11,755 | $ | 12,963 | $ | 741 | 5.7 | % | ||||||||||||
Total liquid assets | $ | 19,225 | $ | 17,322 | $ | 15,201 | $ | 16,665 | $ | 17,360 | $ | 1,865 | 10.7 | % | ||||||||||||
Undrawn credit facilities | ||||||||||||||||||||||||||
Undrawn credit facilities | $ | 5,600 | $ | 6,050 | $ | 6,500 | $ | 7,050 | $ | 6,050 | $ | (450 | ) | (7.4 | )% | |||||||||||
Total liquid assets and undrawn credit facilities | $ | 24,825 | $ | 23,372 | $ | 21,701 | $ | 23,715 | $ | 23,410 | $ | 1,415 | 6.0 | % | ||||||||||||
Liquid assets % of total assets | 19.61 | % | 16.52 | % | 14.35 | % | 15.66 | % | 16.47 | % | 3.14 | % | ||||||||||||||
Liquid assets including undrawn credit facilities % of total assets | 25.32 | % | 22.30 | % | 20.48 | % | 22.29 | % | 22.21 | % | 3.11 | % | ||||||||||||||
(1) Return on assets represents net earnings as a percentage of average total assets. | ||||||||||||||||||||||||||
(2) Return on equity represents net earnings as a percentage of average total equity. | ||||||||||||||||||||||||||
(3) Return on tangible common equity represents net earnings available to common stockholders as a percentage of average tangible common equity. Tangible common equity ("TCE") is a non-GAAP measure. For corresponding reconciliation of TCE to a GAAP financial measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures. | ||||||||||||||||||||||||||
(4) Net interest margin represents net interest income divided by average interest-earning assets. | ||||||||||||||||||||||||||
(5) Efficiency ratio represents (i) other expense, divided by (ii) net interest income, plus other income, less retailer share arrangements. | ||||||||||||||||||||||||||
(6) Based on customer statement-end balances extrapolated to the respective period-end date. | ||||||||||||||||||||||||||
(7) Allowance coverage ratio represents allowance for credit losses divided by total period-end loan receivables. | ||||||||||||||||||||||||||
(8) Purchase volume, or net credit sales, represents the aggregate amount of charges incurred on credit cards or other credit product accounts less returns during the period. | ||||||||||||||||||||||||||
(9) Includes activity and accounts associated with loan receivables held for sale. | ||||||||||||||||||||||||||
(10) Active accounts represent credit card or installment loan accounts on which there has been a purchase, payment or outstanding balance in the current month. | ||||||||||||||||||||||||||
SYNCHRONY FINANCIAL | ||||||||||||||||||||||||||
STATEMENTS OF EARNINGS | ||||||||||||||||||||||||||
(unaudited, $ in millions) | ||||||||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||||||||
Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | 1Q'20 vs. 1Q'19 | |||||||||||||||||||||
Interest income: | ||||||||||||||||||||||||||
Interest and fees on loans | $ | 4,340 | $ | 4,492 | $ | 4,890 | $ | 4,636 | $ | 4,687 | $ | (347 | ) | (7.4 | )% | |||||||||||
Interest on cash and debt securities | 67 | 93 | 91 | 102 | 99 | (32 | ) | (32.3 | )% | |||||||||||||||||
Total interest income | 4,407 | 4,585 | 4,981 | 4,738 | 4,786 | (379 | ) | (7.9 | )% | |||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||
Interest on deposits | 356 | 383 | 411 | 397 | 375 | (19 | ) | (5.1 | )% | |||||||||||||||||
Interest on borrowings of consolidated securitization entities | 73 | 80 | 88 | 90 | 100 | (27 | ) | (27.0 | )% | |||||||||||||||||
Interest on senior unsecured notes | 88 | 93 | 93 | 96 | 85 | 3 | 3.5 | % | ||||||||||||||||||
Total interest expense | 517 | 556 | 592 | 583 | 560 | (43 | ) | (7.7 | )% | |||||||||||||||||
Net interest income | 3,890 | 4,029 | 4,389 | 4,155 | 4,226 | (336 | ) | (8.0 | )% | |||||||||||||||||
Retailer share arrangements | (926 | ) | (1,029 | ) | (1,016 | ) | (859 | ) | (954 | ) | 28 | (2.9 | )% | |||||||||||||
Provision for credit losses | 1,677 | 1,104 | 1,019 | 1,198 | 859 | 818 | 95.2 | % | ||||||||||||||||||
Net interest income, after retailer share arrangements and provision for credit losses | 1,287 | 1,896 | 2,354 | 2,098 | 2,413 | (1,126 | ) | (46.7 | )% | |||||||||||||||||
Other income: | ||||||||||||||||||||||||||
Interchange revenue | 161 | 192 | 197 | 194 | 165 | (4 | ) | (2.4 | )% | |||||||||||||||||
Debt cancellation fees | 69 | 64 | 64 | 69 | 68 | 1 | 1.5 | % | ||||||||||||||||||
Loyalty programs | (158 | ) | (181 | ) | (203 | ) | (192 | ) | (167 | ) | 9 | (5.4 | )% | |||||||||||||
Other | 25 | 29 | 27 | 19 | 26 | (1 | ) | (3.8 | )% | |||||||||||||||||
Total other income | 97 | 104 | 85 | 90 | 92 | 5 | 5.4 | % | ||||||||||||||||||
Other expense: | ||||||||||||||||||||||||||
Employee costs | 324 | 385 | 359 | 358 | 353 | (29 | ) | (8.2 | )% | |||||||||||||||||
Professional fees | 197 | 199 | 205 | 231 | 232 | (35 | ) | (15.1 | )% | |||||||||||||||||
Marketing and business development | 111 | 152 | 139 | 135 | 123 | (12 | ) | (9.8 | )% | |||||||||||||||||
Information processing | 123 | 122 | 127 | 123 | 113 | 10 | 8.8 | % | ||||||||||||||||||
Other | 247 | 221 | 234 | 212 | 222 | 25 | 11.3 | % | ||||||||||||||||||
Total other expense | 1,002 | 1,079 | 1,064 | 1,059 | 1,043 | (41 | ) | (3.9 | )% | |||||||||||||||||
Earnings before provision for income taxes | 382 | 921 | 1,375 | 1,129 | 1,462 | (1,080 | ) | (73.9 | )% | |||||||||||||||||
Provision for income taxes | 96 | 190 | 319 | 276 | 355 | (259 | ) | (73.0 | )% | |||||||||||||||||
Net earnings | $ | 286 | $ | 731 | $ | 1,056 | $ | 853 | $ | 1,107 | $ | (821 | ) | (74.2 | )% | |||||||||||
Net earnings available to common stockholders | $ | 275 | $ | 731 | $ | 1,056 | $ | 853 | $ | 1,107 | $ | (832 | ) | (75.2 | )% | |||||||||||
SYNCHRONY FINANCIAL | |||||||||||||||||||||||||
STATEMENTS OF FINANCIAL POSITION | |||||||||||||||||||||||||
(unaudited, $ in millions) | |||||||||||||||||||||||||
Quarter Ended | |||||||||||||||||||||||||
Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Mar 31, 2020 vs. Mar 31, 2019 | ||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash and equivalents | $ | 13,704 | $ | 12,147 | $ | 11,461 | $ | 11,755 | $ | 12,963 | $ | 741 | 5.7 | % | |||||||||||
Debt securities | 6,146 | 5,911 | 4,584 | 6,147 | 5,506 | 640 | 11.6 | % | |||||||||||||||||
Loan receivables: | |||||||||||||||||||||||||
Unsecuritized loans held for investment | 54,765 | 58,398 | 56,220 | 55,178 | 54,907 | (142 | ) | (0.3 | )% | ||||||||||||||||
Restricted loans of consolidated securitization entities | 27,704 | 28,817 | 26,987 | 26,618 | 25,498 | 2,206 | 8.7 | % | |||||||||||||||||
Total loan receivables | 82,469 | 87,215 | 83,207 | 81,796 | 80,405 | 2,064 | 2.6 | % | |||||||||||||||||
Less: Allowance for credit losses(1) | (9,175 | ) | (5,602 | ) | (5,607 | ) | (5,809 | ) | (5,942 | ) | (3,233 | ) | 54.4 | % | |||||||||||
Loan receivables, net | 73,294 | 81,613 | 77,600 | 75,987 | 74,463 | (1,169 | ) | (1.6 | )% | ||||||||||||||||
Loan receivables held for sale | 5 | 725 | 8,182 | 8,096 | 8,052 | (8,047 | ) | (99.9 | )% | ||||||||||||||||
Goodwill | 1,078 | 1,078 | 1,078 | 1,078 | 1,076 | 2 | 0.2 | % | |||||||||||||||||
Intangible assets, net | 1,208 | 1,265 | 1,177 | 1,215 | 1,259 | (51 | ) | (4.1 | )% | ||||||||||||||||
Other assets | 2,603 | 2,087 | 1,861 | 2,110 | 2,065 | 538 | 26.1 | % | |||||||||||||||||
Total assets | $ | 98,038 | $ | 104,826 | $ | 105,943 | $ | 106,388 | $ | 105,384 | $ | (7,346 | ) | (7.0 | )% | ||||||||||
Liabilities and Equity | |||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||
Interest-bearing deposit accounts | $ | 64,302 | $ | 64,877 | $ | 65,677 | $ | 65,382 | $ | 63,787 | $ | 515 | 0.8 | % | |||||||||||
Non-interest-bearing deposit accounts | 313 | 277 | 295 | 263 | 273 | 40 | 14.7 | % | |||||||||||||||||
Total deposits | 64,615 | 65,154 | 65,972 | 65,645 | 64,060 | 555 | 0.9 | % | |||||||||||||||||
Borrowings: | |||||||||||||||||||||||||
Borrowings of consolidated securitization entities | 9,291 | 10,412 | 10,912 | 11,941 | 12,091 | (2,800 | ) | (23.2 | )% | ||||||||||||||||
Senior unsecured notes | 7,957 | 9,454 | 9,451 | 9,303 | 9,800 | (1,843 | ) | (18.8 | )% | ||||||||||||||||
Total borrowings | 17,248 | 19,866 | 20,363 | 21,244 | 21,891 | (4,643 | ) | (21.2 | )% | ||||||||||||||||
Accrued expenses and other liabilities | 4,205 | 4,718 | 4,488 | 4,765 | 4,724 | (519 | ) | (11.0 | )% | ||||||||||||||||
Total liabilities | 86,068 | 89,738 | 90,823 | 91,654 | 90,675 | (4,607 | ) | (5.1 | )% | ||||||||||||||||
Equity: | |||||||||||||||||||||||||
Preferred stock | 734 | 734 | — | — | — | 734 | NM | ||||||||||||||||||
Common stock | 1 | 1 | 1 | 1 | 1 | — | — | % | |||||||||||||||||
Additional paid-in capital | 9,523 | 9,537 | 9,520 | 9,500 | 9,489 | 34 | 0.4 | % | |||||||||||||||||
Retained earnings | 9,960 | 12,117 | 11,533 | 10,627 | 9,939 | 21 | 0.2 | % | |||||||||||||||||
Accumulated other comprehensive income: | (49 | ) | (58 | ) | (44 | ) | (43 | ) | (56 | ) | 7 | (12.5 | )% | ||||||||||||
Treasury stock | (8,199 | ) | (7,243 | ) | (5,890 | ) | (5,351 | ) | (4,664 | ) | (3,535 | ) | 75.8 | % | |||||||||||
Total equity | 11,970 | 15,088 | 15,120 | 14,734 | 14,709 | (2,739 | ) | (18.6 | )% | ||||||||||||||||
Total liabilities and equity | $ | 98,038 | $ | 104,826 | $ | 105,943 | $ | 106,388 | $ | 105,384 | $ | (7,346 | ) | (7.0 | )% | ||||||||||
(1) Effective January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments-Credit Losses ("CECL") that measures the allowance for credit losses based on management’s best estimate of expected credit losses for the life of our loan receivables. Prior periods presented reflect measurement of the allowance based on management’s estimate of probable incurred credit losses in accordance with the previous accounting guidance effective for those periods. | |||||||||||||||||||||||||
SYNCHRONY FINANCIAL | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
AVERAGE BALANCES, NET INTEREST INCOME AND NET INTEREST MARGIN | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(unaudited, $ in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest | Average | Interest | Average | Interest | Average | Interest | Average | Interest | Average | |||||||||||||||||||||||||||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||||||||||||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-earning cash and equivalents | $ | 12,902 | $ | 42 | 1.31 | % | $ | 16,269 | $ | 68 | 1.66 | % | $ | 10,947 | $ | 59 | 2.14 | % | $ | 10,989 | $ | 66 | 2.41 | % | $ | 11,033 | $ | 65 | 2.39 | % | ||||||||||||||||||||||||
Securities available for sale | 5,954 | 25 | 1.69 | % | 4,828 | 25 | 2.05 | % | 5,389 | 32 | 2.36 | % | 6,010 | 36 | 2.40 | % | 5,640 | 34 | 2.44 | % | ||||||||||||||||||||||||||||||||||
Loan receivables, including held for sale: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit cards | 81,716 | 4,272 | 21.03 | % | 81,960 | 4,409 | 21.34 | % | 87,156 | 4,807 | 21.88 | % | 85,488 | 4,557 | 21.38 | % | 86,768 | 4,611 | 21.55 | % | ||||||||||||||||||||||||||||||||||
Consumer installment loans | 1,432 | 35 | 9.83 | % | 2,058 | 48 | 9.25 | % | 2,022 | 48 | 9.42 | % | 1,924 | 44 | 9.17 | % | 1,844 | 42 | 9.24 | % | ||||||||||||||||||||||||||||||||||
Commercial credit products | 1,243 | 33 | 10.68 | % | 1,311 | 34 | 10.29 | % | 1,329 | 35 | 10.45 | % | 1,330 | 34 | 10.25 | % | 1,252 | 34 | 11.01 | % | ||||||||||||||||||||||||||||||||||
Other | 37 | — | — | % | 47 | 1 | NM | 49 | — | — | % | 50 | 1 | NM | 39 | — | — | % | ||||||||||||||||||||||||||||||||||||
Total loan receivables, including held for sale | 84,428 | 4,340 | 20.67 | % | 85,376 | 4,492 | 20.87 | % | 90,556 | 4,890 | 21.42 | % | 88,792 | 4,636 | 20.94 | % | 89,903 | 4,687 | 21.14 | % | ||||||||||||||||||||||||||||||||||
Total interest-earning assets | 103,284 | 4,407 | 17.16 | % | 106,473 | 4,585 | 17.08 | % | 106,892 | 4,981 | 18.49 | % | 105,791 | 4,738 | 17.96 | % | 106,576 | 4,786 | 18.21 | % | ||||||||||||||||||||||||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | 1,450 | 1,326 | 1,374 | 1,271 | 1,335 | |||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses | (8,708 | ) | (5,593 | ) | (5,773 | ) | (5,911 | ) | (6,341 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Other assets | 4,696 | 3,872 | 3,920 | 3,752 | 3,729 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total non-interest-earning assets | (2,562 | ) | (395 | ) | (479 | ) | (888 | ) | (1,277 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 100,722 | $ | 106,078 | $ | 106,413 | $ | 104,903 | $ | 105,299 | ||||||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposit accounts | $ | 64,366 | $ | 356 | 2.22 | % | $ | 65,380 | $ | 383 | 2.32 | % | $ | 65,615 | $ | 411 | 2.49 | % | $ | 64,226 | $ | 397 | 2.48 | % | $ | 63,776 | $ | 375 | 2.38 | % | ||||||||||||||||||||||||
Borrowings of consolidated securitization entities | 9,986 | 73 | 2.94 | % | 10,831 | 80 | 2.93 | % | 11,770 | 88 | 2.97 | % | 11,785 | 90 | 3.06 | % | 13,407 | 100 | 3.02 | % | ||||||||||||||||||||||||||||||||||
Senior unsecured notes | 8,807 | 88 | 4.02 | % | 9,452 | 93 | 3.90 | % | 9,347 | 93 | 3.95 | % | 9,543 | 96 | 4.03 | % | 8,892 | 85 | 3.88 | % | ||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 83,159 | 517 | 2.50 | % | 85,663 | 556 | 2.58 | % | 86,732 | 592 | 2.71 | % | 85,554 | 583 | 2.73 | % | 86,075 | 560 | 2.64 | % | ||||||||||||||||||||||||||||||||||
Non-interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-interest-bearing deposit accounts | 299 | 281 | 283 | 271 | 286 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 4,672 | 4,906 | 4,570 | 4,260 | 4,148 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total non-interest-bearing liabilities | 4,971 | 5,187 | 4,853 | 4,531 | 4,434 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 88,130 | 90,850 | 91,585 | 90,085 | 90,509 | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total equity | 12,592 | 15,228 | 14,828 | 14,818 | 14,790 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 100,722 | $ | 106,078 | $ | 106,413 | $ | 104,903 | $ | 105,299 | ||||||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 3,890 | $ | 4,029 | $ | 4,389 | $ | 4,155 | $ | 4,226 | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate spread(1) | 14.66 | % | 14.50 | % | 15.78 | % | 15.23 | % | 15.57 | % | ||||||||||||||||||||||||||||||||||||||||||||
Net interest margin(2) | 15.15 | % | 15.01 | % | 16.29 | % | 15.75 | % | 16.08 | % | ||||||||||||||||||||||||||||||||||||||||||||
(1) Interest rate spread represents the difference between the yield on total interest-earning assets and the rate on total interest-bearing liabilities. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Net interest margin represents net interest income divided by average interest-earning assets. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
SYNCHRONY FINANCIAL | |||||||||||||||||||||||||
BALANCE SHEET STATISTICS | |||||||||||||||||||||||||
(unaudited, $ in millions, except per share statistics) | |||||||||||||||||||||||||
Quarter Ended | |||||||||||||||||||||||||
Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Mar 31, 2020 vs. Mar 31, 2019 | ||||||||||||||||||||
BALANCE SHEET STATISTICS | |||||||||||||||||||||||||
Total common equity | $ | 11,236 | $ | 14,354 | $ | 15,120 | $ | 14,734 | $ | 14,709 | $ | (3,473 | ) | (23.6 | )% | ||||||||||
Total common equity as a % of total assets | 11.46 | % | 13.69 | % | 14.27 | % | 13.85 | % | 13.96 | % | (2.50 | )% | |||||||||||||
Tangible assets | $ | 95,752 | $ | 102,483 | $ | 103,688 | $ | 104,095 | $ | 103,049 | $ | (7,297 | ) | (7.1 | )% | ||||||||||
Tangible common equity(1) | $ | 8,950 | $ | 12,011 | $ | 12,865 | $ | 12,441 | $ | 12,374 | $ | (3,424 | ) | (27.7 | )% | ||||||||||
Tangible common equity as a % of tangible assets(1) | 9.35 | % | 11.72 | % | 12.41 | % | 11.95 | % | 12.01 | % | (2.66 | )% | |||||||||||||
Tangible common equity per share(1) | $ | 15.35 | $ | 19.50 | $ | 19.68 | $ | 18.60 | $ | 17.96 | $ | (2.61 | ) | (14.5 | )% | ||||||||||
REGULATORY CAPITAL RATIOS(2)(3) | |||||||||||||||||||||||||
Basel III - CECL Transition | Basel III | ||||||||||||||||||||||||
Total risk-based capital ratio(4) | 16.5 | % | 16.3 | % | 15.8 | % | 15.6 | % | 15.8 | % | |||||||||||||||
Tier 1 risk-based capital ratio(5) | 15.2 | % | 15.0 | % | 14.5 | % | 14.3 | % | 14.5 | % | |||||||||||||||
Tier 1 leverage ratio(6) | 12.3 | % | 12.6 | % | 12.6 | % | 12.4 | % | 12.3 | % | |||||||||||||||
Common equity Tier 1 capital ratio | 14.3 | % | 14.1 | % | 14.5 | % | 14.3 | % | 14.5 | % | |||||||||||||||
(1) Tangible common equity ("TCE") is a non-GAAP measure. We believe TCE is a more meaningful measure of the net asset value of the Company to investors. For corresponding reconciliation of TCE to a GAAP financial measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures. | |||||||||||||||||||||||||
(2) Regulatory capital ratios at March 31, 2020 are preliminary and therefore subject to change. | |||||||||||||||||||||||||
(3) Capital ratios at March 31, 2020 reflect election to delay for two years an estimate of CECL’s effect on regulatory capital in accordance with the interim final rule issued by U.S. banking agencies in March 2020. | |||||||||||||||||||||||||
(4) Total risk-based capital ratio is the ratio of total risk-based capital divided by risk-weighted assets. | |||||||||||||||||||||||||
(5) Tier 1 risk-based capital ratio is the ratio of Tier 1 capital divided by risk-weighted assets. | |||||||||||||||||||||||||
(6) Tier 1 leverage ratio is the ratio of Tier 1 capital divided by total average assets, after certain adjustments. Tier 1 leverage ratios are based upon the use of daily averages for all periods presented. | |||||||||||||||||||||||||
SYNCHRONY FINANCIAL | |||||||||||||||||||||||||
PLATFORM RESULTS | |||||||||||||||||||||||||
(unaudited, $ in millions) | |||||||||||||||||||||||||
Quarter Ended | |||||||||||||||||||||||||
Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | 1Q'20 vs. 1Q'19 | ||||||||||||||||||||
RETAIL CARD | |||||||||||||||||||||||||
Purchase volume(1)(2) | $ | 24,008 | $ | 30,968 | $ | 29,282 | $ | 29,530 | $ | 24,660 | $ | (652 | ) | (2.6 | )% | ||||||||||
Period-end loan receivables | $ | 52,390 | $ | 56,387 | $ | 52,697 | $ | 52,307 | $ | 51,572 | $ | 818 | 1.6 | % | |||||||||||
Average loan receivables, including held for sale | $ | 53,820 | $ | 54,505 | $ | 60,660 | $ | 59,861 | $ | 60,964 | $ | (7,144 | ) | (11.7 | )% | ||||||||||
Average active accounts (in thousands)(2)(3) | 53,018 | 54,662 | 58,082 | 57,212 | 58,632 | (5,614 | ) | (9.6 | )% | ||||||||||||||||
Interest and fees on loans | $ | 3,037 | $ | 3,143 | $ | 3,570 | $ | 3,390 | $ | 3,454 | $ | (417 | ) | (12.1 | )% | ||||||||||
Other income | $ | 59 | $ | 77 | $ | 65 | $ | 59 | $ | 76 | $ | (17 | ) | (22.4 | )% | ||||||||||
Retailer share arrangements | $ | (904 | ) | $ | (988 | ) | $ | (998 | ) | $ | (836 | ) | $ | (940 | ) | $ | 36 | (3.8 | )% | ||||||
PAYMENT SOLUTIONS | |||||||||||||||||||||||||
Purchase volume(1)(2) | $ | 5,375 | $ | 6,402 | $ | 6,281 | $ | 5,948 | $ | 5,249 | $ | 126 | 2.4 | % | |||||||||||
Period-end loan receivables | $ | 19,973 | $ | 20,528 | $ | 20,478 | $ | 19,766 | $ | 19,379 | $ | 594 | 3.1 | % | |||||||||||
Average loan receivables, including held for sale | $ | 20,344 | $ | 20,701 | $ | 20,051 | $ | 19,409 | $ | 19,497 | $ | 847 | 4.3 | % | |||||||||||
Average active accounts (in thousands)(2)(3) | 12,681 | 12,713 | 12,384 | 12,227 | 12,406 | 275 | 2.2 | % | |||||||||||||||||
Interest and fees on loans | $ | 706 | $ | 737 | $ | 721 | $ | 685 | $ | 686 | $ | 20 | 2.9 | % | |||||||||||
Other income | $ | 13 | $ | 4 | $ | (1 | ) | $ | 11 | $ | 1 | $ | 12 | NM | |||||||||||
Retailer share arrangements | $ | (18 | ) | $ | (37 | ) | $ | (15 | ) | $ | (21 | ) | $ | (12 | ) | $ | (6 | ) | 50.0 | % | |||||
CARECREDIT | |||||||||||||||||||||||||
Purchase volume(1) | $ | 2,659 | $ | 2,842 | $ | 2,832 | $ | 2,813 | $ | 2,604 | $ | 55 | 2.1 | % | |||||||||||
Period-end loan receivables | $ | 10,106 | $ | 10,300 | $ | 10,032 | $ | 9,723 | $ | 9,454 | $ | 652 | 6.9 | % | |||||||||||
Average loan receivables, including held for sale | $ | 10,264 | $ | 10,170 | $ | 9,845 | $ | 9,522 | $ | 9,442 | $ | 822 | 8.7 | % | |||||||||||
Average active accounts (in thousands)(3) | 6,379 | 6,359 | 6,229 | 6,086 | 6,094 | 285 | 4.7 | % | |||||||||||||||||
Interest and fees on loans | $ | 597 | $ | 612 | $ | 599 | $ | 561 | $ | 547 | $ | 50 | 9.1 | % | |||||||||||
Other income | $ | 25 | $ | 23 | $ | 21 | $ | 20 | $ | 15 | $ | 10 | 66.7 | % | |||||||||||
Retailer share arrangements | $ | (4 | ) | $ | (4 | ) | $ | (3 | ) | $ | (2 | ) | $ | (2 | ) | $ | (2 | ) | 100.0 | % | |||||
TOTAL SYF | |||||||||||||||||||||||||
Purchase volume(1)(2) | $ | 32,042 | $ | 40,212 | $ | 38,395 | $ | 38,291 | $ | 32,513 | $ | (471 | ) | (1.4 | )% | ||||||||||
Period-end loan receivables | $ | 82,469 | $ | 87,215 | $ | 83,207 | $ | 81,796 | $ | 80,405 | $ | 2,064 | 2.6 | % | |||||||||||
Average loan receivables, including held for sale | $ | 84,428 | $ | 85,376 | $ | 90,556 | $ | 88,792 | $ | 89,903 | $ | (5,475 | ) | (6.1 | )% | ||||||||||
Average active accounts (in thousands)(2)(3) | 72,078 | 73,734 | 76,695 | 75,525 | 77,132 | (5,054 | ) | (6.6 | )% | ||||||||||||||||
Interest and fees on loans | $ | 4,340 | $ | 4,492 | $ | 4,890 | $ | 4,636 | $ | 4,687 | $ | (347 | ) | (7.4 | )% | ||||||||||
Other income | $ | 97 | $ | 104 | $ | 85 | $ | 90 | $ | 92 | $ | 5 | 5.4 | % | |||||||||||
Retailer share arrangements | $ | (926 | ) | $ | (1,029 | ) | $ | (1,016 | ) | $ | (859 | ) | $ | (954 | ) | $ | 28 | (2.9 | )% | ||||||
(1) Purchase volume, or net credit sales, represents the aggregate amount of charges incurred on credit cards or other credit product accounts less returns during the period. | |||||||||||||||||||||||||
(2) Includes activity and balances associated with loan receivables held for sale. | |||||||||||||||||||||||||
(3) Active accounts represent credit card or installment loan accounts on which there has been a purchase, payment or outstanding balance in the current month. | |||||||||||||||||||||||||
SYNCHRONY FINANCIAL | |||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES AND CALCULATIONS OF REGULATORY MEASURES(1) | |||||||||||||||||||
(unaudited, $ in millions, except per share statistics) | |||||||||||||||||||
Quarter Ended | |||||||||||||||||||
Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||||||||||
COMMON EQUITY AND REGULATORY CAPITAL MEASURES(2) | |||||||||||||||||||
GAAP Total equity | $ | 11,970 | $ | 15,088 | $ | 15,120 | $ | 14,734 | $ | 14,709 | |||||||||
Less: Preferred stock | (734 | ) | (734 | ) | — | — | — | ||||||||||||
Less: Goodwill | (1,078 | ) | (1,078 | ) | (1,078 | ) | (1,078 | ) | (1,076 | ) | |||||||||
Less: Intangible assets, net | (1,208 | ) | (1,265 | ) | (1,177 | ) | (1,215 | ) | (1,259 | ) | |||||||||
Tangible common equity | $ | 8,950 | $ | 12,011 | $ | 12,865 | $ | 12,441 | $ | 12,374 | |||||||||
Add: CECL transition amount | 2,417 | — | — | — | — | ||||||||||||||
Adjustments for certain deferred tax liabilities and certain items in accumulated comprehensive income (loss) | 304 | 319 | 290 | 283 | 287 | ||||||||||||||
Common equity Tier 1 | $ | 11,671 | $ | 12,330 | $ | 13,155 | $ | 12,724 | $ | 12,661 | |||||||||
Preferred stock | 734 | 734 | — | — | — | ||||||||||||||
Tier 1 capital | $ | 12,405 | $ | 13,064 | $ | 13,155 | $ | 12,724 | $ | 12,661 | |||||||||
Add: Allowance for credit losses includible in risk-based capital | 1,082 | 1,147 | 1,190 | 1,169 | 1,152 | ||||||||||||||
Total Risk-based capital | $ | 13,487 | $ | 14,211 | $ | 14,345 | $ | 13,893 | $ | 13,813 | |||||||||
ASSET MEASURES(2) | |||||||||||||||||||
Total average assets | $ | 100,722 | $ | 106,078 | $ | 106,413 | $ | 104,903 | $ | 105,299 | |||||||||
Adjustments for: | |||||||||||||||||||
Add: CECL transition amount | 2,417 | — | — | — | — | ||||||||||||||
Disallowed goodwill and other disallowed intangible assets (net of related deferred tax liabilities) and other | (2,010 | ) | (2,059 | ) | (1,975 | ) | (2,003 | ) | (2,039 | ) | |||||||||
Total assets for leverage purposes | $ | 101,129 | $ | 104,019 | $ | 104,438 | $ | 102,900 | $ | 103,260 | |||||||||
Risk-weighted assets | $ | 81,639 | $ | 87,302 | $ | 90,772 | $ | 88,890 | $ | 87,331 | |||||||||
CECL FULLY PHASED-IN CAPITAL MEASURES | |||||||||||||||||||
Tier 1 capital | $ | 12,405 | $ | 13,064 | $ | 13,155 | $ | 12,724 | $ | 12,661 | |||||||||
Less: CECL transition adjustment | (2,417 | ) | — | — | — | — | |||||||||||||
Tier 1 capital (CECL fully phased-in) | $ | 9,988 | $ | 13,064 | $ | 13,155 | $ | 12,724 | $ | 12,661 | |||||||||
Add: Allowance for credit losses | 9,175 | 5,602 | 5,607 | 5,809 | 5,942 | ||||||||||||||
Tier 1 capital (CECL fully phased-in) + Reserves for credit losses | $ | 19,163 | $ | 18,666 | $ | 18,762 | $ | 18,533 | $ | 18,603 | |||||||||
Risk-weighted assets | $ | 81,639 | $ | 87,302 | $ | 90,772 | $ | 88,890 | $ | 87,331 | |||||||||
Less: CECL transition adjustment | (2,204 | ) | — | — | — | — | |||||||||||||
Risk-weighted assets (CECL fully phased-in) | $ | 79,435 | $ | 87,302 | $ | 90,772 | $ | 88,890 | $ | 87,331 | |||||||||
TANGIBLE COMMON EQUITY PER SHARE | |||||||||||||||||||
GAAP book value per share | $ | 19.27 | $ | 23.31 | $ | 23.13 | $ | 22.03 | $ | 21.35 | |||||||||
Less: Goodwill | (1.85 | ) | (1.75 | ) | (1.65 | ) | (1.61 | ) | (1.56 | ) | |||||||||
Less: Intangible assets, net | (2.07 | ) | (2.06 | ) | (1.80 | ) | (1.82 | ) | (1.83 | ) | |||||||||
Tangible common equity per share | $ | 15.35 | $ | 19.50 | $ | 19.68 | $ | 18.60 | $ | 17.96 | |||||||||
(1) Regulatory measures at March 31, 2020 are presented on an estimated basis. | |||||||||||||||||||
(2) Capital ratios at March 31, 2020 reflect election to delay for two years an estimate of CECL’s effect on regulatory capital in accordance with the interim final rule issued by U.S. banking agencies in March 2020. | |||||||||||||||||||
SYNCHRONY FINANCIAL | |||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES (Continued) | |||||||||||||||||||
(unaudited, $ in millions, except per share statistics) | |||||||||||||||||||
Quarter Ended | |||||||||||||||||||
Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||||||||||
ALLOWANCE FOR LOAN LOSSES (1) | |||||||||||||||||||
Allowance for credit losses | $ | 9,175 | N/A | N/A | N/A | N/A | |||||||||||||
Less: Impact from CECL(2) | (3,122 | ) | — | — | — | — | |||||||||||||
Allowance for loan losses(1) | $ | 6,053 | $ | 5,602 | $ | 5,607 | $ | 5,809 | $ | 5,942 | |||||||||
ALLOWANCE FOR LOAN LOSSES AS A % OF PERIOD-END LOAN RECEIVABLES | |||||||||||||||||||
Allowance for credit losses as a % of period-end loan receivables | 11.13 | % | N/A | N/A | N/A | N/A | |||||||||||||
Less: Impact from CECL(2) | (3.79 | )% | — | % | — | % | — | % | — | % | |||||||||
Allowance for loan losses as a % of period-end loan receivables | 7.34 | % | 6.42 | % | 6.74 | % | 7.10 | % | 7.39 | % | |||||||||
CORE PURCHASE VOLUME | |||||||||||||||||||
Purchase Volume | $ | 32,042 | $ | 40,212 | $ | 38,395 | $ | 38,291 | $ | 32,513 | |||||||||
Less: Walmart and Yamaha Purchase volume | — | (267 | ) | (2,381 | ) | (2,512 | ) | (2,151 | ) | ||||||||||
Core Purchase volume | $ | 32,042 | $ | 39,945 | $ | 36,014 | $ | 35,779 | $ | 30,362 | |||||||||
CORE LOAN RECEIVABLES | |||||||||||||||||||
Loan receivables | $ | 82,469 | $ | 87,215 | $ | 83,207 | $ | 81,796 | $ | 80,405 | |||||||||
Less: Walmart and Yamaha Loan receivables | — | (3 | ) | (872 | ) | (1,188 | ) | (1,420 | ) | ||||||||||
Core Loan receivables | $ | 82,469 | $ | 87,212 | $ | 82,335 | $ | 80,608 | $ | 78,985 | |||||||||
Retail Card Loan receivables | $ | 52,390 | $ | 56,387 | $ | 52,697 | $ | 52,307 | $ | 51,572 | |||||||||
Less: Walmart Loan receivables | — | — | (112 | ) | (431 | ) | (692 | ) | |||||||||||
Core Loan receivables | $ | 52,390 | $ | 56,387 | $ | 52,585 | $ | 51,876 | $ | 50,880 | |||||||||
Payment Solutions Loan receivables | $ | 19,973 | $ | 20,528 | $ | 20,478 | $ | 19,766 | $ | 19,379 | |||||||||
Less: Yamaha Loan receivables | — | (3 | ) | (760 | ) | (757 | ) | (728 | ) | ||||||||||
Core Loan receivables | $ | 19,973 | $ | 20,525 | $ | 19,718 | $ | 19,009 | $ | 18,651 | |||||||||
CORE AVERAGE ACTIVE ACCOUNTS (in thousands) | |||||||||||||||||||
Average active accounts (in thousands) | 72,078 | 73,734 | 76,695 | 75,525 | 77,132 | ||||||||||||||
Less: Walmart and Yamaha average Active accounts (in thousands) | — | (1,777 | ) | (7,001 | ) | (7,215 | ) | (7,618 | ) | ||||||||||
Core Average active accounts (in thousands) | 72,078 | 71,957 | 69,694 | 68,310 | 69,514 | ||||||||||||||
CORE INTEREST AND FEES ON LOANS | |||||||||||||||||||
Interest and fees on loans | $ | 4,340 | $ | 4,492 | $ | 4,890 | $ | 4,636 | $ | 4,687 | |||||||||
Less: Walmart and Yamaha Interest and fees on loans | — | (69 | ) | (531 | ) | (520 | ) | (549 | ) | ||||||||||
Core Interest and fees on loans | $ | 4,340 | $ | 4,423 | $ | 4,359 | $ | 4,116 | $ | 4,138 | |||||||||
(1) Beginning in 1Q'20, allowance for loan losses is calculated based upon accounting standards no longer effective, and as such is a Non-GAAP measure. | |||||||||||||||||||
(2) Impact from CECL reflects the additional allowance for credit losses recorded in accordance with ASC 2016-13, as compared to the allowance for credit losses required had the prior accounting guidance been applied. | |||||||||||||||||||