<PAGE>
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) October 14, 1996
---------------------------
Commercial Credit Company
- -----------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 1-6594 52-0883351
--------------- ------------- -------------
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
300 Saint Paul Place, Baltimore, Maryland 21202
- -----------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(410) 332-3000
- -----------------------------------------------------------------------------
(Registrant's telephone number, including area code)
<PAGE>
COMMERCIAL CREDIT COMPANY
Current Report on Form 8-K
Item 5. OTHER EVENTS
RESULTS OF OPERATIONS
Despite strong growth in receivables; year-to-year earnings were lower, as
expected -- driven by a higher provision for loan losses. The net income of
Commercial Credit Company (the "Company") for the three months and nine months
ended September 30, 1996 was $46.6 million and $149.3 million, respectively,
compared to $60.9 million and $162.2 million, respectively, in the corresponding
1995 periods. The Company's income before income taxes for the three months and
nine months ended September 30, 1996 was $70.8 million and $227.3 million,
respectively, compared to $90.6 million and $248.1 million, respectively, in the
corresponding 1995 periods. The Company's revenues for the three months and
nine months ended September 30, 1996 were $357.5 million and $1,071.0 million,
respectively, compared to $355.7 million and $1,036.2 million, respectively, in
the corresponding 1995 periods.
At September 30, 1996 the Company had total debt consisting of certificates of
deposit of $125.6 million, short-term borrowings of $1,828.7 million and
long-term debt of $5,300.0 million. In addition the Company's total
stockholder's equity at September 30, 1996 was $1,222.6 million.
<PAGE>
COMMERCIAL CREDIT COMPANY
SELECTED FINANCIAL DATA
(In millions of dollars)
<TABLE>
<CAPTION>
Three months ended Nine months ended
BUSINESS SEGMENT DATA September 30, September 30,
- --------------------- ------------------ -----------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
REVENUES:
Consumer Finance $ 350.4 $ 343.0 $ 1,045.8 $ 1,003.4
Corporate and Other 7.1 12.7 25.2 32.8
------ ------ ------- -------
REVENUES $ 357.5 $ 355.7 $ 1,071.0 $ 1,036.2
------ ------ ------- -------
------ ------ ------- -------
NET INCOME:
Consumer Finance $ 53.8 $ 65.1 $ 169.8 $ 180.6
Corporate and Other (7.2) (4.2) (20.5) (18.4)
------ ------ ------- -------
NET INCOME $ 46.6 $ 60.9 $ 149.3 $ 162.2
------ ------ ------- -------
------ ------ ------- -------
<CAPTION>
As of, and for, the As of, and for, the
three months ended nine months ended
CONSUMER FINANCE OPERATIONS September 30, September 30,
- --------------------------- -------------------- -------------------
1996 1995 1996 1995
---- ---- ---- ----
Net receivables
Real estate - secured loans $ 3,306.7 $ 2,927.8 $ 3,306.7 $ 2,927.8
Personal loans 3,120.7 3,045.7 3,120.7 3,045.7
Credit cards 832.2 723.6 832.2 723.6
Sales finance and other 478.7 448.6 478.7 448.6
------ ------ ------- -------
Consumer finance receivables
net of unearned finance charges 7,738.3 7,145.7 7,738.3 7,145.7
Accrued interest receivable 46.6 41.2 46.6 41.2
Allowance for credit losses (225.7) (188.9) (225.7) (188.9)
------ ------ ------- -------
Consumer finance receivables, net $ 7,559.2 $ 6,998.0 $ 7,559.2 $ 6,998.0
------ ------ ------- -------
------ ------ ------- -------
Average yield 15.17% 15.77% 15.33% 15.59%
Average net interest margin 8.59% 8.86% 8.72% 8.73%
Charge-off rate 2.91% 2.24% 2.90% 2.18%
60+ days past due as % of
receivables 2.31% 1.97% 2.31% 1.97%
Reserves as % of net receivables 2.92% 2.64% 2.92% 2.64%
</TABLE>
<PAGE>
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.
Dated: October 15, 1996 COMMERCIAL CREDIT COMPANY
By /s/ William T. Bozarth
-------------------------
William T. Bozarth
Vice President
<PAGE>
October 15, 1996
VIA ELECTRONIC TRANSMISSION
Filer Support, EDGAR
Securities and Exchange Commission
Operations Center, Stop 0-7
6432 General Green Way
Alexandria, VA 22312
Re: COMMERCIAL CREDIT COMPANY
CURRENT REPORT ON FORM 8-K
Ladies and Gentlemen:
Transmitted herewith on behalf of Commercial Credit Company (the
"Company"), is a Current Report on Form 8-K dated October 14, 1996. No exhibits
are being filed with the Report.
Please feel free to call me at (212) 816-4959 if you have any comments
or questions regarding the Current Report.
Thank you.
Very truly yours,
/s/ Shelley J. Dropkin
Shelley J. Dropkin
