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 14, 1997
-------------------------------
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
Quarterly 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 ended March 31, 1997 was $42.4 million compared to $48.4 million in
the corresponding 1996 period. The Company's income before income taxes for the
three months ended March 31, 1997 was $64.6 million compared to $74.2 million in
the corresponding 1996 period. The Company's revenues for the three months ended
March 31, 1997 were $383.7 million compared to $355.6 million in the
corresponding 1996 period.
At March 31, 1997 the Company had total debt consisting of certificates of
deposit of $131.6 million, short-term borrowings of $2,112.2 million and
long-term debt of $5,400.0 million. In addition the Company's total
stockholder's equity at March 31, 1997 was $1,280.7 million.
2
<PAGE>
- --------------------------------------------------------------------------------
COMMERCIAL CREDIT COMPANY
SELECTED FINANCIAL DATA
(In millions of dollars)
Three months ended
BUSINESS SEGMENT DATA March 31,
-------------------------
1997 1996
-------- --------
REVENUES:
Consumer Finance $ 376.3 $ 347.5
Corporate and Other 7.4 8.1
-------- --------
REVENUES $ 383.7 $ 355.6
======== ========
NET INCOME:
Consumer Finance $ 47.0 $ 55.5
Corporate and Other (4.6) (7.1)
-------- --------
NET INCOME $ 42.4 $ 48.4
======== ========
As of, and for, the
Three months ended
March 31,
--------------------------
1997 1996
--------- ---------
Net receivables
Real estate - secured loans $ 3,698.2 $ 3,010.6
Personal loans 3,257.2 3,011.3
Credit cards 972.2 807.4
Sales finance and other 519.0 478.1
--------- ---------
Consumer finance receivables,
net of unearned finance charges 8,446.6 7,307.4
Accrued interest receivable 51.7 44.6
Allowance for credit losses (250.9) (210.7)
--------- ---------
Consumer finance receivables, net $ 8,247.4 $ 7,141.3
========= =========
Average yield 14.65% 15.43%
Average net interest margin 8.17% 8.75%
Charge-off rate 2.95% 2.87%
60+ days past due as % of
receivables 2.25% 2.21%
Reserves as % of net receivables 2.97% 2.88%
3
<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.
COMMERCIAL CREDIT COMPANY
Dated: April 14, 1997 By /s/ William T. Bozarth
-----------------------------
William T. Bozarth
Vice President
4
