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Form 8-K AMERICAN EXPRESS CO For: Apr 15

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April 15, 2016 12:01 PM EDT
 
 
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): April 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 January 31, February 29 and March 31, 2016 and the three months ended March 31, 2016. Effective December 1, 2015, the Company reclassified the Card Member loans related to its cobrand partnerships with Costco Wholesale Corporation in the U.S. and JetBlue Airways Corporation (the “HFS Portfolios”) to Card Member loans held for sale on the Consolidated Balance Sheets and thus such loans are not reflected in the table below.

Historical Card Member loan, delinquency and write-off statistics for USCS, U.S. Small Business and 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 January 31, February 29 and March 31, 2016 and the three months ended March 31, 2016

(Billions, except percentages)
 
 
   
January 31,
2016
    
February 29,
2016
    
(Preliminary)
March 31,
 2016
    
(Preliminary)
Three months ended
March 31,
2016
  
USCS Card Member loans:
                
Total loans held for investment
  
$
42.5
    
$
41.7
    
$
42.4
    
$
42.4
  
30 days past due loans as a % of total
    
1.0
%
    
1.0
%
    
1.0
%
    
1.0
%
Average loans held for investment
  
$
43.0
    
$
42.1
    
$
42.1
    
$
42.5
  
Net write-off rate – principal only (a)
    
1.4
%
    
1.4
%
    
1.5
%
    
1.5
%
                                 
U.S. Small Business Card Member loans:
                                
Total loans held for investment
  
$
8.0
    
$
8.0
    
$
8.3
    
$
8.3
  
30 days past due loans as a % of total
    
1.0
%
    
1.1
%
    
1.0
%
    
1.0
%
Average loans held for investment
  
$
8.0
    
$
8.0
    
$
8.1
    
$
8.1
  
Net write-off rate – principal only (a)
    
1.4
%
    
1.4
%
    
1.4
%
    
1.4
%
                                 
Total U.S. Consumer and Small Business Card Member loans held for investment
  
$
50.5
    
$
49.7
    
$
50.7
    
$
50.7
  

(a)
Net write-off rate based on principal only (i.e., excluding interest and /or fees).

 
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 and vintage of loans, the performance of Card Member loans held for sale that have been securitized through the Lending Trust, but which are 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.

-2-
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)

   
January 1, 2016
through
January 31, 2016
    
February 1, 2016
through
February 29, 2016
    
March 1, 2016
through
March 31, 2016
  
             
Ending total principal balance
  
$
26.6
    
$
25.6
    
$
25.5
  
Defaulted amount
  
$
0.04
    
$
0.04
    
$
0.04
  
Annualized default rate, net of recoveries
    
1.2
%
    
1.4
%
    
1.2
%
Total 30+ days delinquent
  
$
0.2
    
$
0.2
    
$
0.2
  


-3-
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.

-4-

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: April 15, 2016

 
-5-

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.


-6-
U.S. Card Member Loans
  
Exhibit 99.1

Ending U.S. Card Member loans:
  
Jan. 31,
2015
    
Feb. 28,
2015
    
Mar. 31,
2015
    
Apr. 30,
2015
    
May 31,
2015
    
Jun. 30,
2015
    
Jul. 31,
2015
    
Aug. 31,
2015
    
Sept. 30,
2015
    
Oct. 31,
2015
    
Nov. 30,
2015
    
Dec. 31,
2015
    
Jan. 31,
2016
    
Feb. 29,
2016
    
(Preliminary)
Mar. 31,
2016
  
U.S. Consumer
                                                            
Loans held for investment
  
$
50,915
    
$
49,151
    
$
50,261
    
$
50,536
    
$
51,821
    
$
51,812
    
$
51,851
    
$
52,661
    
$
52,160
    
$
52,551
    
$
53,818
    
$
43,496
    
$
42,474
    
$
41,697
    
$
42,432
  
Loans held for investment related to Costco and JetBlue*
    
12,509
      
11,869
      
12,236
      
12,231
      
12,648
      
12,582
      
12,476
      
12,579
      
12,164
      
12,055
      
12,329
      
-
      
-
      
-
      
-
  
Total loans held for investment excluding loans related to Costco and JetBlue
  
$
38,406
    
$
37,282
    
$
38,024
    
$
38,305
    
$
39,173
    
$
39,230
    
$
39,375
    
$
40,082
    
$
39,996
    
$
40,496
    
$
41,489
    
$
43,496
    
$
42,474
    
$
41,697
    
$
42,432
  
Total loans held for investment, growth versus prior year
    
8
%
    
7
%
    
7
%
    
7
%
    
7
%
    
7
%
    
6
%
    
7
%
    
7
%
    
7
%
    
7
%
    
(18)
%
    
(17)
%
    
(15)
%
    
(16)
%
Total loans held for investment excluding loans related to Costco and JetBlue, growth versus prior year
    
7
%
    
7
%
    
7
%
    
7
%
    
7
%
    
7
%
    
7
%
    
8
%
    
8
%
    
9
%
    
9
%
    
10
%
    
11
%
    
12
%
    
12
%
Loans held for sale related to Costco and JetBlue*
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
12,755
    
$
11,789
    
$
10,901
    
$
9,745
  

* Note: Costco and JetBlue loans reclassified as held for sale as of December 2015. On March 18, 2016, the sale of the JetBlue portfolio was completed.
-1-
 
   Ending U.S. Card
   Member loans:
  
Jan. 31,
2015
    
Feb. 28,
2015
    
Mar. 31,
2015
    
Apr. 30,
2015
    
May 31,
2015
    
Jun. 30,
2015
    
Jul. 31,
2015
    
Aug. 31,
2015
    
Sept. 30,
2015
    
Oct. 31,
2015
    
Nov. 30,
2015
    
Dec. 31,
2015
    
Jan. 31,
2016
    
Feb. 29,
2016
    
(Preliminary)
Mar. 31,
2016
  
U.S. Small Business
                                                           
Loans held for investment
  
$
9,473
    
$
9,378
    
$
9,669
    
$
9,765
    
$
10,014
    
$
9,919
    
$
9,917
    
$
9,970
    
$
9,973
    
$
10,195
    
$
10,126
    
$
7,951
    
$
8,042
    
$
7,970
    
$
8,268
  
Loans held for investment related to Costco and JetBlue*
    
2,346
      
2,262
      
2,359
      
2,366
      
2,446
      
2,413
      
2,387
      
2,377
      
2,292
      
2,288
      
2,295
      
-
      
-
      
-
      
-
  
Total loans held for investment excluding loans related to Costco and JetBlue
  
$
7,128
    
$
7,116
    
$
7,309
    
$
7,398
    
$
7,568
    
$
7,505
    
$
7,531
    
$
7,594
    
$
7,681
    
$
7,907
    
$
7,831
    
$
7,951
    
$
8,042
    
$
7,970
    
$
8,268
  
Total loans held for investment, growth versus prior year
    
9
%
    
9
%
    
9
%
    
8
%
    
9
%
    
9
%
    
9
%
    
8
%
    
9
%
    
10
%
    
8
%
    
(16)
%
    
(15)
%
    
(15)
%
    
(14)
%
Total loans held for investment excluding loans related to Costco and JetBlue, growth versus prior year
    
9
%
    
9
%
    
9
%
    
10
%
    
10
%
    
10
%
    
10
%
    
10
%
    
12
%
    
13
%
    
12
%
    
13
%
    
13
%
    
12
%
    
13
%
Loans held for sale related to Costco and JetBlue*
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
2,345
    
$
2,200
    
$
2,063
    
$
2,032
  

* Note: Costco and JetBlue loans reclassified as held for sale as of December 2015. On March 18, 2016, the sale of the JetBlue portfolio was completed.
-2-
 
   Ending U.S. Card
   Member loans:
  
Jan. 31,
2015
    
Feb. 28,
2015
    
Mar. 31,
2015
    
Apr. 30,
2015
    
May 31,
2015
    
Jun. 30,
2015
    
Jul. 31,
2015
    
Aug. 31,
2015
    
Sept. 30,
2015
    
Oct. 31,
2015
    
Nov. 30,
2015
    
Dec. 31,
2015
    
Jan. 31,
2016
    
Feb. 29,
2016
    
(Preliminary)
Mar. 31,
2016
  
Total U.S. Consumer and Small Business
                                                            
Loans held for investment
  
$
60,388
    
$
58,529
    
$
59,929
    
$
60,301
    
$
61,835
    
$
61,731
    
$
61,768
    
$
62,631
    
$
62,133
    
$
62,746
    
$
63,944
    
$
51,446
    
$
50,516
    
$
49,666
    
$
50,699
  
Loans held for investment related to Costco and JetBlue*
    
14,855
      
14,131
      
14,596
      
14,597
      
15,095
      
14,996
      
14,863
      
14,955
      
14,456
      
14,343
      
14,624
      
-
      
-
      
-
      
-
  
Total loans held for investment excluding loans related to Costco and JetBlue
  
$
45,533
    
$
44,398
    
$
45,334
    
$
45,703
    
$
46,740
    
$
46,735
    
$
46,905
    
$
47,676
    
$
47,677
    
$
48,404
    
$
49,320
    
$
51,446
    
$
50,516
    
$
49,666
    
$
50,699
  
Total loans held for investment, growth versus prior year
    
8
%
    
8
%
    
7
%
    
7
%
    
7
%
    
7
%
    
7
%
    
7
%
    
7
%
    
8
%
    
7
%
    
(18)
%
    
(16)
%
    
(15)
%
    
(15)
%
Total loans held for investment excluding loans related to Costco and JetBlue, growth versus prior year
    
7
%
    
7
%
    
7
%
    
7
%
    
8
%
    
8
%
    
8
%
    
8
%
    
9
%
    
10
%
    
10
%
    
10
%
    
11
%
    
12
%
    
12
%
Loans held for sale related to Costco and JetBlue*
    $
-
      $
-
      $
-
      $
-
      $
-
      $
-
      $
-
      $
-
      $
-
      $
-
      $
-
      $
15,100
      $
13,988
      $
12,964
      $
11,777
  

* Note: Costco and JetBlue loans reclassified as held for sale as of December 2015. On March 18, 2016, the sale of the JetBlue portfolio was completed.
-3-
Delinquency and Write-off Rate Statistics:**
  
Jan. 31,
2015
    
Feb. 28,
2015
    
Mar. 31,
2015
    
Apr. 30,
2015
    
May 31,
2015
    
Jun. 30,
2015
    
Jul. 31,
2015
    
Aug. 31,
2015
    
Sept. 30,
2015
    
Oct. 31,
2015
    
Nov. 30,
2015
    
Dec. 31,
2015
    
Jan. 31,
2016
    
Feb. 29,
2016
    
(Preliminary)
Mar. 31,
2016
  
U.S. Consumer
                                                            
30 days past due loans as a % of total loans
  
 
1.0
%
    
1.0
%
    
0.9
%
    
0.9
%
    
0.9
%
    
0.9
%
    
0.9
%
    
0.9
%
    
1.0
%
    
1.0
%
    
1.0
%
    
1.0
%
    
1.0
%
    
1.0
%
    
1.0
%
Net write-off rate - principal only
    
1.5
%
    
1.6
%
    
1.5
%
    
1.5
%
    
1.3
%
    
1.3
%
    
1.3
%
    
1.3
%
    
1.2
%
    
1.4
%
    
1.5
%
    
1.4
%
    
1.4
%
    
1.4
%
    
1.5
%
U.S. Small Business
                                                                                                                        
30 days past due loans as a % of total loans
    
1.0
%
    
1.0
%
    
1.0
%
    
1.0
%
    
0.9
%
    
0.9
%
    
0.9
%
    
0.9
%
    
1.0
%
    
1.0
%
    
1.0
%
    
1.1
%
    
1.0
%
    
1.1
%
    
1.0
%
Net write-off rate - principal only
  
 
1.4
%
    
1.4
%
    
1.2
%
    
1.3
%
    
1.3
%
    
1.2
%
    
1.4
%
    
1.4
%
    
1.1
%
    
1.3
%
    
1.2
%
    
1.2
%
    
1.4
%
    
1.4
%
    
1.4
%

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

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