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) January 21, 1997
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Commercial Credit Company
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(Exact name of registrant as specified in its charter)
Delaware 1-6594 52-0883351
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
300 Saint Paul Place, Baltimore, Maryland 21202
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(Address of principal executive offices) (Zip Code)
(410) 332-3000
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(Registrant's telephone number, including area code)
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COMMERCIAL CREDIT COMPANY
Current Report on Form 8-K
Item 5. Other Events
Results of Operations
Despite strong growth in receivables during the second half of 1996,
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 year ended December 31, 1996 was $46.5 million and $195.8
million, respectively, compared to $57.7 million and $219.9 million,
respectively, in the corresponding 1995 periods. The Company's income before
income taxes for the three months and year ended December 31, 1996 was $69.7
million and $297.0 million, respectively, compared to $85.9 million and $334.0
million, respectively, in the corresponding 1995 periods. The Company's revenues
for the three months and year ended December 31, 1996 were $370.1 million and
$1,441.1 million, respectively, compared to $356.2 million and $1,392.4 million,
respectively, in the corresponding 1995 periods.
At December 31, 1996 the Company had total debt consisting of certificates of
deposit of $102.3 million, short-term borrowings of $1,481.6 million and
long-term debt of $5,750.0 million. In addition the Company's total
stockholder's equity at December 31, 1996 was $1,274.5 million.
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COMMERCIAL CREDIT COMPANY
SELECTED FINANCIAL DATA
(In millions of dollars)
<TABLE>
<CAPTION>
Three months ended Year ended
Business Segment Data December 31, December 31,
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1996 1995 1996 1995
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<S> <C> <C> <C> <C>
Revenues:
Consumer Finance $ 363.1 $ 347.9 $ 1,408.9 $ 1,351.3
Corporate and Other 7.0 8.3 32.2 41.1
============= ============= ============= =============
Revenues $ 370.1 $ 356.2 $ 1,441.1 $ 1,392.4
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Net Income:
Consumer Finance $ 52.0 $ 64.6 $ 221.8 $ 245.2
Corporate and Other (5.5) (6.9) (26.0) (25.3)
============= ============= ============= =============
Net Income $ 46.5 $ 57.7 $ 195.8 $ 219.9
============= ============= ============= =============
<CAPTION>
As of, and for, the As of, and for, the
Three months ended Year ended
December 31, December 31,
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1996 1995 1996 1995
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<S> <C> <C> <C> <C>
Net receivables
Real estate - secured loans $3,456.7 $2,957.1 $3,456.7 $2,957.1
Personal loans 3,199.6 3,051.0 3,199.6 3,051.0
Credit cards 907.1 761.8 907.1 761.8
Sales finance and other 507.7 468.2 507.7 468.2
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Consumer finance receivables
net of unearned finance charges 8,071.1 7,238.1 8,071.1 7,238.1
Accrued interest receivable 52.7 46.9 52.7 46.9
Allowance for credit losses (239.3) (192.5) (239.3) (192.5)
============= ============= ============= =============
Consumer finance receivables, net $7,884.5 $7,092.5 $7,884.5 $7,092.5
============= ============= ============= =============
Average yield 15.00% 15.78% 15.24% 15.64%
Average net interest margin 8.45% 8.97% 8.64% 8.79%
Charge-off rate 2.95% 2.58% 2.91% 2.28%
60+ days past due as % of
receivables 2.38% 2.14% 2.38% 2.14%
Reserves as % of net receivables 2.97% 2.66% 2.97% 2.66%
</TABLE>
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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.
Dated: January 21, 1997 COMMERCIAL CREDIT COMPANY
By /s/ William T. Bozarth
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William T. Bozarth
Vice President
