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Section 1: 8-K (FORM 8-K OF AMERICAN EXPRESS COMPANY)

 
 
 
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): August 15, 2016
 
 
AMERICAN EXPRESS COMPANY
 
(Exact name of registrant as specified in its charter)
 
 
 
New York
1-7657
13-4922250
(State or other jurisdiction of incorporation or organization)
(Commission File Number)
(IRS Employer Identification No.)
 
 
200 Vesey Street
New York, New York
10285
(Address of principal executive offices)
(Zip Code)
 
 
Registrant's telephone number, including area code: (212) 640-2000
 
 
Not Applicable
(Former name or former address, if changed since last report)
 
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
 


 

 
Item 7.01 Regulation FD Disclosure

American Express Company (the “Company”) is hereby furnishing below delinquency and write-off statistics for its U.S. Consumer Services (“USCS”) operating segment’s Card Member loans held for investment and its U.S. Small Business Card Member loans held for investment within its Global Commercial Services operating segment for the months ended May 31, June 30 and July 31, 2016.

Historical Card Member loan, delinquency and write-off statistics for USCS, U.S. Small Business and Card Members loans related to cobrand partnerships with Costco Wholesale Corporation in the U.S. and JetBlue Airways Corporation (the “HFS Portfolios”) are attached as Exhibit 99.1 to this Current Report on Form 8-K and are incorporated herein by reference.

American Express Company
U.S. Consumer Services and U.S. Small Business
Delinquency and Write-off Rate Statistics

As of and for the months ended May 31, June 30 and July 31, 2016

(Billions, except percentages)
 
 
 
   
May 31,
2016
   
June 30,
2016 (b)
   
July 31,
2016 (b)
 
USCS Card Member loans:
                 
Total loans held for investment
 
$
44.2
   
$
44.6
   
$
44.8
 
30 days past due loans as a % of total
   
0.9
%
   
1.1
%
   
1.1
%
Average loans held for investment
 
$
43.6
   
$
44.4
   
$
44.7
 
Net write-off rate – principal only (a)
   
1.6
%
   
1.3
%
   
1.6
%
                         
U.S. Small Business Card Member loans:
                       
Total loans held for investment
 
$
8.5
   
$
8.6
   
$
8.7
 
30 days past due loans as a % of total
   
1.0
%
   
1.1
%
   
1.1
%
Average loans held for investment
 
$
8.5
   
$
8.6
   
$
8.7
 
Net write-off rate – principal only (a)
   
1.3
%
   
1.2
%
   
1.5
%
                         
Total U.S. Consumer and Small Business Card Member loans held for investment
 
$
52.7
   
$
53.2
   
$
53.5
 

(a)
Net write-off rate based on principal only (i.e., excluding interest and /or fees).
(b)
Reflects the impact of U.S. Consumer and Small Business Card Member loans reclassified as Card Member loans held for investment from Card Member loans held for sale on the Consolidated Balance Sheets, which totaled $245 million and $214 million as of June 30 and July 31, 2016, respectively.  Excluding those loans, adjusted 30 days past due loans as a % of total, a non-GAAP measure, was 1.0% for both USCS and U.S. Small Business as of July 31, 2016 and the adjusted net write-off rate – principal only, a non-GAAP measure, was 1.4% and 1.2% for USCS and U.S. Small Business, respectively, as of July 31, 2016.

-2-

 
The statistics presented above provide information that is additional to the data reported by the American Express Credit Account Master Trust (the “Lending Trust”) in its monthly Form 10-D report filed with the Securities and Exchange Commission.  The Card Member loans that have been securitized through the Lending Trust do not possess identical characteristics with those of the USCS or U.S. Small Business Card Member loans held for investment.  The reported credit performance of the Lending Trust may, on a month-to-month basis, be better or worse as a result of, among other things, differences in the mix, vintage and aging of loans, including with respect to Card Member loans acquired by the Lending Trust on June 1, 2016 (none of which were past due at the time of acquisition), the performance of Card Member loans held for sale that had been securitized through the Lending Trust and included in the reported credit performance of the Lending Trust (prior to removal of those loans from the Lending Trust upon completion of the Costco portfolio sale) but were not included in the loans held for investment statistics, the use of end-of-period principal loan balances to calculate write-off statistics in the Lending Trust compared to the use of average loan balances over the reporting period used in the statistics of the USCS and U.S. Small Business Card Member loans held for investment, as well as other mechanics of the calculation for the Lending Trust net write-off rate, which is impacted by any additions to the Lending Trust within a particular period.

Set forth below is certain information regarding the credit performance of the Lending Trust for its three most recent monthly reporting periods, as reported in its Form 10-D report filed with respect to each such period.

American Express Credit Account Master Trust

(Billions, except percentages)
   
May 1, 2016
through
May 31, 2016
   
June 1, 2016
through
June 30, 2016 (a)
   
July 1, 2016
through
July 31, 2016
 
                   
Ending total principal balance
 
$
25.7
   
$
24.7
   
$
24.5
 
Defaulted amount
 
$
0.04
   
$
0.04
   
$
0.03
 
Annualized default rate, net of recoveries
   
1.3
%
   
1.0
%
   
1.0
%
Total 30+ days delinquent
 
$
0.2
   
$
0.2
   
$
0.2
 

(a)
Reflects the acquisition of $3.0 billion of Card Member loans by the Lending Trust on June 1, 2016 and the removal of $3.6 billion of Card Member loans from the Lending Trust on June 17, 2016 in connection with the sale of the Costco portfolio.


EXHIBIT

99.1 Historical information relating to Card Member loan, delinquency and write-off statistics for USCS, U.S. Small Business and the HFS Portfolios.
 
 
 
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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



AMERICAN EXPRESS COMPANY
(REGISTRANT)
 
 
By:
/s/ Carol V. Schwartz
Name: Carol V. Schwartz
Title: Secretary



Date: August 15, 2016
 
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EXHIBIT INDEX
 
 
Exhibit
Description
 
99.1
 
Historical information relating to Card Member loan, delinquency and write-off statistics for USCS, U.S. Small Business and the HFS Portfolios.

 
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Section 2: EX-99.1 (EXHIBIT 99.1)

 
U.S. Card Member Loans
 
Exhibit 99.1
 
Ending U.S. Card Member loans:
 
Jul. 31,
2015
   
Aug. 31,
2015
   
Sept. 30,
2015
   
Oct. 31,
2015
   
Nov. 30,
2015
   
Dec. 31,
2015
   
Jan. 31,
2016
   
Feb. 29,
2016
   
Mar. 31,
2016
   
Apr. 30,
2016
   
May 31,
2016
   
Jun. 30,
2016
   
Jul. 31,
2016
 
U.S. Consumer
                                                                             
Loans held for investment
 
$
51,851
   
$
52,661
   
$
52,160
   
$
52,551
   
$
53,818
   
$
43,496
   
$
42,474
   
$
41,697
   
$
42,432
   
$
42,965
   
$
44,174
   
$
44,594
   
$
44,785
 
Loans held for investment related to Costco and JetBlue*
   
12,476
     
12,579
     
12,164
     
12,055
     
12,329
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
 
Total loans held for investment excluding loans related to Costco and JetBlue
 
$
39,375    
$
40,082
   
$
39,996
   
$
40,496
   
$
41,489
   
$
43,496
   
$
42,474
   
$
41,697
   
$
42,432
   
$
42,965
   
$
44,174
   
$
44,594
   
$
44,785
 
Total loans held for investment, growth versus prior year
   
6
%
   
7
%
   
7
%
   
7
%
   
7
%
   
(18
)%
   
(17
)%
   
(15
)%
   
(16
)%
   
(15
)%
   
(15
)%
   
(14
)%
   
(14
)%
Total loans held for investment excluding loans related to Costco and JetBlue, growth versus prior year
   
7
%
   
8
%
   
8
%
   
9
%
   
9
%
   
10
%
   
11
%
   
12
%
   
12
%
   
12
%
   
13
%
   
14
%
   
14
%
Loans held for sale related to Costco and JetBlue*
 
$
-
   
$
-
   
$
-
   
$
-
   
$
-
   
$
12,755
   
$
11,789
   
$
10,901
   
$
9,745
   
$
9,603
   
$
9,582
   
$
-
   
$
-
 
 
 
 
*
Note: Costco and JetBlue loans reclassified as held for sale as of December 2015. The Costco and JetBlue portfolios were sold as of June 17, 2016 and March 18, 2016, respectively.
-1-

 
Ending U.S. Card Member loans:
 
Jul. 31,
2015
   
Aug. 31,
2015
   
Sept. 30,
2015
   
Oct. 31,
2015
   
Nov. 30,
2015
   
Dec. 31,
2015
   
Jan. 31,
2016
   
Feb. 29,
2016
   
Mar. 31,
2016
   
Apr. 30,
2016
   
May 31,
2016
   
Jun. 30,
2016
   
Jul. 31,
2016
 
U.S. Small Business
                                                                             
Loans held for investment
 
$
9,917
   
$
9,970
   
$
9,973
   
$
10,195
   
$
10,126
   
$
7,951
   
$
8,042
   
$
7,970
   
$
8,268
   
$
8,438
   
$
8,530
   
$
8,644
   
$
8,740
 
Loans held for investment related to Costco and JetBlue*
   
2,387
     
2,377
     
2,292
     
2,288
     
2,295
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
 
Total loans held for investment excluding loans related to Costco and JetBlue
 
$
7,531
   
$
7,594
   
$
7,681
   
$
7,907
   
$
7,831
   
$
7,951
   
$
8,042
   
$
7,970
   
$
8,268
   
$
8,438
   
$
8,530
   
$
8,644
   
$
8,740
 
Total loans held for investment, growth versus prior year
   
9
%
   
8
%
   
9
%
   
10
%
   
8
%
   
(16
)%
   
(15
)%
   
(15
)%
   
(14
)%
   
(14
)%
   
(15
)%
   
(13
)%
   
(12
)%
Total loans held for investment excluding loans related to Costco and JetBlue, growth versus prior year
   
10
%
   
10
%
   
12
%
   
13
%
   
12
%
   
13
%
   
13
%
   
12
%
   
13
%
   
14
%
   
13
%
   
15
%
   
16
%
Loans held for sale related to Costco and JetBlue*
 
$
-
   
$
-
   
$
-
   
$
-
   
$
-
   
$
2,345
   
$
2,200
   
$
2,063
   
$
2,032
   
$
2,024
   
$
2,008
   
$
-
   
$
-
 
 
*
Note: Costco and JetBlue loans reclassified as held for sale as of December 2015. The Costco and JetBlue portfolios were sold as of June 17, 2016 and March 18, 2016, respectively.
 
 
-2-

Ending U.S. Card Member loans:
 
Jul. 31,
2015
   
Aug. 31,
2015
   
Sept. 30,
2015
   
Oct. 31,
2015
   
Nov. 30,
2015
   
Dec. 31,
2015
   
Jan. 31,
2016
   
Feb. 29,
2016
   
Mar. 31,
2016
   
Apr. 30,
2016
   
May 31,
2016
   
Jun. 30,
2016
   
Jul. 31,
2016
 
Total U.S. Consumer and Small Business
                                                                             
Loans held for investment
 
$
61,768
   
$
62,631
   
$
62,133
   
$
62,746
   
$
63,944
   
$
51,446
   
$
50,516
   
$
49,666
   
$
50,699
   
$
51,403
   
$
52,704
   
$
53,238
   
$
53,525
 
Loans held for investment related to Costco and JetBlue*
   
14,863
     
14,955
     
14,456
     
14,343
     
14,624
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
 
Total loans held for investment excluding loans related to Costco and JetBlue
 
$
46,905
   
$
47,676
   
$
47,677
   
$
48,404
   
$
49,320
   
$
51,446
   
$
50,516
   
$
49,666
   
$
50,699
   
$
51,403
   
$
52,704
   
$
53,238
   
$
53,525
 
Total loans held for investment, growth versus prior year
   
7
%
   
7
%
   
7
%
   
8
%
   
7
%
   
(18
)%
   
(16
)%
   
(15
)%
   
(15
)%
   
(15
)%
   
(15
)%
   
(14
)%
   
(13
)%
Total loans held for investment excluding loans related to Costco and JetBlue, growth versus prior year
   
8
%
   
8
%
   
9
%
   
10
%
   
10
%
   
10
%
   
11
%
   
12
%
   
12
%
   
12
%
   
13
%
   
14
%
   
14
%
Loans held for sale related to Costco and JetBlue*
  $     $     $     $     $      $ 15,100      $
13,988
    $
12,964
   
$
11,777
   
$
11,627
   
$
11,590
   
$
-
   
$
-
 

 
 
*
Note: Costco and JetBlue loans reclassified as held for sale as of December 2015. The Costco and JetBlue portfolios were sold as of June 17, 2016 and March 18, 2016, respectively.
 
-3-


Delinquency and Write-off Rate Statistics:**
 
Jul. 31,
2015
   
Aug. 31,
2015
   
Sept. 30,
2015
   
Oct. 31,
2015
   
Nov. 30,
2015
   
Dec. 31,
2015
   
Jan. 31,
2016
   
Feb. 29,
2016
   
Mar. 31,
2016
   
Apr. 30,
2016
   
May 31,
2016
   
Jun. 30,
2016
   
Jul. 31,
2016
 
U.S. Consumer
                                                                             
30 days past due loans as a % of total loans
   
0.9
%
   
0.9
%
   
1.0
%
   
1.0
%
   
1.0
%
   
1.0
%
   
1.0
%
   
1.0
%
   
1.0
%
   
0.9
%
   
0.9
%
   
1.1
%
   
1.1
%
Net write-off rate - principal only
   
1.3
%
   
1.3
%
   
1.2
%
   
1.4
%
   
1.5
%
   
1.4
%
   
1.4
%
   
1.4
%
   
1.5
%
   
1.5
%
   
1.6
%
   
1.3
%
   
1.6
%
                                                                                                         
U.S. Small Business
                                                                                                       
30 days past due loans as a % of total loans
   
0.9
%
   
0.9
%
   
1.0
%
   
1.0
%
   
1.0
%
   
1.1
%
   
1.0
%
   
1.1
%
   
1.0
%
   
1.0
%
   
1.0
%
   
1.1
%
   
1.1
%
Net write-off rate - principal only
   
1.4
%
   
1.4
%
   
1.1
%
   
1.3
%
   
1.2
%
   
1.2
%
   
1.4
%
   
1.4
%
   
1.4
%
   
1.4
%
   
1.3
%
   
1.2
%
   
1.5
%

 
**
All credit metrics for total loans held for investment. Costco and JetBlue loans reclassified as held for sale as of December 2015.
 
 
 
 
 
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