Cabela's 2013 Annual Report Download - page 63

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53
The following table shows the activity in our allowance for loan losses and charge off activity for the
years ended:
2013 2012 2011
(Dollars in Thousands)
Balance, beginning of year $ 65,600 $ 73,350 $ 90,900
Provision for loan losses 43,223 42,760 39,287
Charge-offs (72,959) (68,834) (75,599)
Recoveries 17,246 18,324 18,762
Net charge-offs (55,713) (50,510) (56,837)
Balance, end of year $ 53,110 $ 65,600 $ 73,350
Net charge-offs on credit card loans $ (55,713) $ (50,510) $ (56,837)
Charge-offs of accrued interest and fees (recorded as a
reduction in interest and fee income) (7,439) (7,293) (7,683)
Total net charge-offs including accrued interest and fees $ (63,152) $ (57,803) $ (64,520)
Net charge-offs, including accrued interest and fees, as a
percentage of average credit card loans, including accrued
interest and fees 1.80% 1.87% 2.35%
For 2013, net charge-offs as a percentage of average credit card loans decreased to 1.80%, down seven basis
points compared to 1.87% for 2012. We believe our charge-off levels remain well below industry averages. Our net
charge-off rates and allowance for loan losses have decreased due to improved outlooks in the quality of our credit
card portfolio evidenced by lower delinquencies, lower delinquency roll-rates, favorable charge-off trends, and
declining loan balances in our restructured loan portfolio.
Aging of Credit Cards Loans Outstanding
The following table shows our credit card loans outstanding at the end of 2013 and 2012 segregated by the
number of months passed since the accounts were opened.
2013 2012
Months Since Account Opened Loans
Outstanding Percentage
of Total Loans
Outstanding Percentage
of Total
(Dollars in Thousands)
6 months or less $ 171,206 4.3% $ 153,709 4.3%
7 – 12 months 170,840 4.3 126,586 3.6
13 – 24 months 336,250 8.4 318,397 9.0
25 – 36 months 330,048 8.3 265,345 7.4
37 – 48 months 273,569 6.9 281,501 7.9
49 – 60 months 287,381 7.2 292,506 8.2
61 – 72 months 291,419 7.3 323,986 9.1
73 – 84 months 324,751 8.1 266,641 7.4
More than 84 months 1,800,385 45.2 1,528,818 43.1
Total $ 3,985,849 100.0% $ 3,557,489 100.0%