Charge-offs and late payments peaked in the summer of 2010 and have dropped steadily since then.
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To keep those profits coming--and hold CapitalSource's charge-offs steady at 0.27% of loans--Delaney plays hardball.
Providian lent extensively to sub-prime (high-risk) consumers and has been bitten by extraordinarily high charge-offs and delinquent loans.
Consumers' card balances these days are high, and another economic downturn would presumably spell another round of loan charge-offs.
Tight credit controls--net charge-offs are only 4.7% of the portfolio--helped AmeriCredit survive the 1997 meltdown of the subprime lending industry.
Sure, we know that credit conditions have improved, but even CEO Jamie Dimon said that delinquencies and charge-offs remained unacceptably high.
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But it's going to take a long while: At JPMorgan and other banks, charge-offs and non-performing assets are increasing and won't peak anytime soon.
Along with the increasing earnings, we are also seeing a stabilization of real estate markets, with a leveling off of non-performing loans, and charge-offs.
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Another decline in charge-offs and late payments shows that issuers and borrowers are still conservative with lending and borrowing, even with interest rates at historic lows.
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Amex's charge-offs of debt deemed unrecoverable have climbed in a few months from unusually low levels to well above the historic average of 4.8% of balances outstanding.
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In our mortgage business, while charge-offs and delinquencies have improved, credit costs still remain at abnormally high levels and continue to be a significant drag on our returns.
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These charge-offs were higher year-over-year at 60% of insured institutions.
Even through the recession, CDFI portfolios performed as well as or better than mainstream financial institutions, with CDFI annual net charge-offs lower in both 2008 and 2009 than FDIC-insured institutions.
Any credit program will have some percentage of charge-offs.
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And although they are 14 points off the all-important play-offs, Ian McGeechan's men still believe they can repeat their traditional late-season charge.
The following season, he completed his transformation of the club in his first full season in charge by finishing third in the Championship and guiding Watford into the Premier League via the play-offs.
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