0000004962-16-000213.txt : 20161115 0000004962-16-000213.hdr.sgml : 20161115 20161115120152 ACCESSION NUMBER: 0000004962-16-000213 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20161115 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20161115 DATE AS OF CHANGE: 20161115 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERICAN EXPRESS CO CENTRAL INDEX KEY: 0000004962 STANDARD INDUSTRIAL CLASSIFICATION: FINANCE SERVICES [6199] IRS NUMBER: 134922250 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-07657 FILM NUMBER: 161998611 BUSINESS ADDRESS: STREET 1: 200 VESEY STREET STREET 2: 50TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10285 BUSINESS PHONE: 2126402000 MAIL ADDRESS: STREET 1: 200 VESEY STREET STREET 2: 50TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10285 8-K 1 creditstatnov2016.htm 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): November 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 and its U.S. Small Business Card Member loans within its Global Commercial Services operating segment for the months ended August 31, September 30 and October 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 August 31, September 30 and October 31, 2016

(Billions, except percentages)
   
August 31,
2016 (b)
    
September 30,
2016 (b)
    
October 31,
 2016 (b)
  
USCS Card Member loans:
                  
Total loans
  
$
45.0
    
$
44.9
    
$
45.5
  
30 days past due loans as a % of total
    
1.1
%
    
1.1
%
    
1.1
%
Average loans
  
$
44.9
    
$
45.0
    
$
45.2
  
Net write-off rate – principal only (a)
    
1.6
%
    
1.6
%
    
1.6
%
                         
U.S. Small Business Card Member loans:
                        
Total loans
  
$
8.8
    
$
9.0
    
$
9.2
  
30 days past due loans as a % of total
    
1.1
%
    
1.1
%
    
1.1
%
Average loans
  
$
8.8
    
$
8.9
    
$
9.1
  
Net write-off rate – principal only (a)
    
1.6
%
    
1.6
%
    
1.5
%
                         
Total U.S. Consumer and Small Business Card Member loans
  
$
53.8
    
$
53.9
    
$
54.7
  

(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 $184 million, $160 million and $143 million as of August 31, September 30 and October 31, 2016, respectively.  Excluding those loans, adjusted 30 days past due loans as a % of total, a non-GAAP measure, was 1.1% and 1.0% for USCS and U.S. Small Business, respectively, as of October 31, 2016 and the adjusted net write-off rate – principal only, a non-GAAP measure, was 1.5% and 1.4% for USCS and U.S. Small Business, respectively, as of October 31, 2016.


 
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.  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 the performance of Card Member loans reclassified as Card Member loans held for investment from Card Member loans held for sale on the Consolidated Balance Sheet, 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, 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)

   
August 1, 2016
through
August 31, 2016
    
September 1, 2016
through
September 30, 2016
    
October 1, 2016
through
October 31, 2016
  
                   
Ending total principal balance
  
$
24.4
    
$
24.1
    
$
 24.2   
Defaulted amount
  
$
0.04
    
$
0.03
    
$
 0.04   
Annualized default rate, net of recoveries
    
1.0
%
    
1.0
%
  
 
  1.1 %
Total 30+ days delinquent
  
$
0.2
    
$
0.2
    
$
 0.2   


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.
 
-3-
 
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: November 15, 2016

-4-

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.

 
-5-
 
 EX-99.1 2 exhibit99_1.htm EXHIBIT 99.1
 
U.S. Card Member Loans
  
Exhibit 99.1
 
Ending U.S. Card Member loans:
  
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
    
Aug. 31,
2016
    
Sept. 30,
2016
    
Oct. 31,
2016
  
U.S. Consumer
                                                                              
Loans held for investment
  
$
52,551
    
$
53,818
    
$
43,496
    
$
42,474
    
$
41,697
    
$
42,432
    
$
42,965
    
$
44,174
    
$
44,594
    
$
44,785
    
$
45,049
    
$
44,857
    
$
45,519
  
Loans held for investment related to Costco and JetBlue*
    
12,055
      
12,329
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total loans held for investment excluding loans related to Costco and JetBlue
  
$
40,496
    
$
41,489
    
$
43,496
    
$
42,474
    
$
41,697
    
$
42,432
    
$
42,965
    
$
44,174
    
$
44,594
    
$
44,785
    
$
45,049
    
$
44,857
    
$
45,519
  
Total loans held for investment, growth versus prior year
    
7
%
    
7
%
    
(18
)%
    
(17
)%
    
(15
)%
    
(16
)%
    
(15
)%
    
(15
)%
    
(14
)%
    
(14
)%
    
(14
)%
    
(14
)%
    
(13
)%
Total loans held for investment excluding loans related to Costco and JetBlue, growth versus prior year
    
9
%
    
9
%
    
10
%
    
11
%
    
12
%
    
12
%
    
12
%
    
13
%
    
14
%
    
14
%
    
12
%
    
12
%
     12
%
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:
  
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
    
Aug. 31,
2016
    
Sept. 30,
2016
    
Oct. 31,
2016
  
U.S. Small Business
                                                                              
Loans held for investment
  
$
10,195
    
$
10,126
    
$
7,951
    
$
8,042
    
$
7,970
    
$
8,268
    
$
8,438
    
$
8,530
    
$
8,644
    
$
8,740
    
$
8,781
    
$
9,013
    
$
9,209
  
Loans held for investment related to Costco and JetBlue*
    
2,288
      
2,295
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total loans held for investment excluding loans related to Costco and JetBlue
  
$
7,907
    
$
7,831
    
$
7,951
    
$
8,042
    
$
7,970
    
$
8,268
    
$
8,438
    
$
8,530
    
$
8,644
    
$
8,740
    
$
8,781
    
$
9,013
    
$
9,209
  
Total loans held for investment, growth versus prior year
    
10
%
    
8
%
    
(16
)%
    
(15
)%
    
(15
)%
    
(14
)%
    
(14
)%
    
(15
)%
    
(13
)%
    
(12
)%
    
(12
)%
    
(10
)%
    
(10
)%
Total loans held for investment excluding loans related to Costco and JetBlue, growth versus prior year
    
13
%
    
12
%
    
13
%
    
13
%
    
12
%
    
13
%
    
14
%
    
13
%
    
15
%
    
16
%
    
16
%
    
17
%
    
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:
  
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
    
Aug. 31,
2016
    
Sept. 30,
2016
    
Oct. 31,
2016
  
Total U.S. Consumer and Small Business
                                                                              
Loans held for investment
  
$
62,746
    
$
63,944
    
$
51,446
    
$
50,516
    
$
49,666
    
$
50,699
    
$
51,403
    
$
52,704
    
$
53,238
    
$
53,525
    
$
53,829
    
$
53,870
    
$
54,728
  
Loans held for investment related to Costco and JetBlue*
    
14,343
      
14,624
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total loans held for investment excluding loans related to Costco and JetBlue
  
$
48,404
    
$
49,320
    
$
51,446
    
$
50,516
    
$
49,666
    
$
50,699
    
$
51,403
    
$
52,704
    
$
53,238
    
$
53,525
    
$
53,829
    
$
53,870
    
$
54,728
  
Total loans held for investment, growth versus prior year
    
8
%
    
7
%
    
(18
)%
    
(16
)%
    
(15
)%
    
(15
)%
    
(15
)%
    
(15
)%
    
(14
)%
    
(13
)%
    
(14
)%
    
(13
)%
    
(13
)%
Total loans held for investment excluding loans related to Costco and JetBlue, growth versus prior year
    
10
%
    
10
%
    
10
%
    
11
%
    
12
%
    
12
%
    
12
%
    
13
%
    
14
%
    
14
%
    
13
%
    
13
%
     13
%
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:**
  
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
    
Aug. 31,
2016
    
Sept. 30,
2016
    
Oct. 31, 2016
  
U.S. Consumer
                                                                              
30 days past due loans as a % of total loans
    
1.0
%
    
1.0
%
    
1.0
%
    
1.0
%
    
1.0
%
    
1.0
%
    
0.9
%
    
0.9
%
    
1.1
%
    
1.1
%
    
1.1
%
    
1.1
%
    
1.1
%
Net write-off rate - principal only
    
1.4
%
    
1.5
%
    
1.4
%
    
1.4
%
    
1.4
%
    
1.5
%
    
1.5
%
    
1.6
%
    
1.3
%
    
1.6
%
    
1.6
%
    
1.6
%
    
1.6
%
                                                                                                         
U.S. Small Business
                                                                                                        
30 days past due loans as a % of total loans
    
1.0
%
    
1.0
%
    
1.1
%
    
1.0
%
    
1.1
%
    
1.0
%
    
1.0
%
    
1.0
%
    
1.1
%
    
1.1
%
    
1.1
%
    
1.1
%
    
1.1
%
Net write-off rate - principal only
    
1.3
%
    
1.2
%
    
1.2
%
    
1.4
%
    
1.4
%
    
1.4
%
    
1.4
%
    
1.3
%
    
1.2
%
    
1.5
%
    
1.6
%
    
1.6
%
     1.5
%

 
**
All credit metrics for total loans held for investment. Costco and JetBlue loans reclassified as held for sale as of December 2015.
 
 
 
 
 
-4-