American Express 2015 Annual Report Download - page 91

We held the following deposits as of December 31:
TABLE 24: CUSTOMER DEPOSITS
(Billions) 2015 2014
U.S. retail deposits:
Savings accounts — Direct ............................................................... $29.0 $26.2
Certificates of deposit: (a)
Direct ............................................................................... 0.3 0.3
Third-party (brokered) ................................................................. 13.9 7.8
Sweep accounts — Third-party (brokered) .................................................. 10.9 9.0
Other retail deposits:
Non-U.S. deposits and U.S. non-interest bearing ............................................. 0.2 0.2
Card Member credit balances — U.S. and non-U.S. ............................................ 0.7 0.7
Total customer deposits ................................................................... $55.0 $44.2
(a) The weighted average remaining maturity and weighted average rate at issuance on the total portfolio of U.S. retail CDs, issued through direct
and third-party programs, were 30.7 months and 1.69 percent, respectively, as of December 31, 2015.
LONG-TERM DEBT PROGRAMS
During 2015, we and our subsidiaries issued unsecured debt and asset-backed securities with maturities ranging
from 2 to 5 years. These amounts included approximately $6.6 billion of unsecured debt and $1.0 billion of AAA-rated
securitization certificates and notes. During the year, we retained approximately $0.1 billion of subordinated
securities, as the pricing for these securities were not attractive compared to our other sources of financing available.
Our 2015 debt issuances were as follows:
TABLE 25: DEBT ISSUANCES
(Billions)
American Express Credit Corporation:
Fixed Rate Senior Notes (weighted-average coupon of 2.26%) ......................................... $4.9
Floating Rate Senior Notes (3-month LIBOR plus 80 basis points on average) ............................ 1.7
American Express Credit Account Master Trust: (a)
Floating Rate Senior Certificates (1-month LIBOR plus 29 basis points on average) ....................... 1.0
Total ............................................................................................. $ 7.6
(a) Issuances from the American Express Credit Account Master Trust (the Lending Trust) do not include $0.1 billion of subordinated securities
retained by us during the year.
ASSET SECURITIZATION PROGRAMS
We periodically securitize Card Member receivables and loans arising from our card business, as the securitization
market provides us with cost-effective funding. Securitization of Card Member receivables and loans is accomplished
through the transfer of those assets to a trust, which in turn issues securities collateralized by the transferred assets
to third-party investors. The proceeds from issuance are distributed to us, through our wholly owned subsidiaries, as
consideration for the transferred assets.
The receivables and loans being securitized are reported as Card Member receivables and loans on our
Consolidated Balance Sheets, with a portion also included in Card Member loans and receivables HFS, and the related
securities issued to third-party investors are reported as long-term debt.
Under the respective terms of the securitization trust agreements, the occurrence of certain triggering events
associated with the performance of the assets of each trust could result in payment of trust expenses, establishment
of reserve funds, or in a worst-case scenario, early amortization of investor securities. During the twelve months ended
December 31, 2015, no such triggering events occurred.
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