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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) July 30, 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
Commercial Credit Company (the "Company") is offering for sale to the public
its 6 1/2% Notes due August 1, 2004. In connection with that offer, the
Company is including in this Current Report on Form 8-K the following
financial information.
RESULTS OF OPERATIONS
Earnings in the second quarter of 1997 were lower than the 1996 second
quarter, as expected -- driven by a higher provision for loan losses.
However, earnings in the 1997 second quarter increased from the 1997 first
quarter, as the loss rate declined and interest-bearing assets reached a new
high. The net income of the Company for the three months and six months
ended June 30, 1997 was $51.1 million and $93.5 million, respectively,
compared to $54.3 million and $102.7 million, respectively, in the
corresponding 1996 periods. The Company's income before income taxes for the
three months and six months ended June 30, 1997 was $77.9 million and $142.5
million, respectively, compared to $82.3 million and $156.5 million,
respectively, in the corresponding 1996 periods. The Company's revenues for
the three months and six months ended June 30, 1997 were $398.6 million and
$772.3 million, respectively, compared to $357.9 million and $713.5 million,
respectively, in the corresponding 1996 periods.
At June 30, 1997 the Company had total debt consisting of certificates of
deposit of $122.2 million, short-term borrowings of $2,811.6 million and
long-term debt of $5,400.0 million. In addition the Company's total
stockholder's equity at June 30, 1997 was $1,303.0 million.
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COMMERCIAL CREDIT COMPANY
SELECTED FINANCIAL DATA
(In millions of dollars)
Three months ended Six months ended
BUSINESS SEGMENT DATA June 30, June 30,
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1997 1996 1997 1996
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REVENUES:
Consumer Finance $388.9 $347.9 $755.2 $695.4
Corporate and Other 9.7 10.0 17.1 18.1
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REVENUES $398.6 $357.9 $772.3 $713.5
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NET INCOME:
Consumer Finance $ 53.8 $ 60.5 $100.8 $116.0
Corporate and Other (2.7) (6.2) (7.3) (13.3)
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NET INCOME $ 51.1 $ 54.3 $ 93.5 $102.7
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Average yield 14.42% 15.40% 14.53% 15.41%
Average net interest margin 7.93% 8.82% 8.04% 8.78%
Charge-off rate 2.82% 2.92% 2.88% 2.89%
As of June 30,
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1997 1996
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Net receivables
Real estate - secured loans $3,992.4 $3,105.8
Personal loans 3,328.0 3,038.2
Credit cards 1,166.3 849.5
Sales finance and other 554.7 469.7
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Consumer finance receivables,
net of unearned finance charges 9,041.4 7,463.2
Accrued interest receivable 56.0 44.7
Allowance for credit losses (263.4) (217.6)
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Consumer finance receivables, net $8,834.0 $7,290.3
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60+ days past due as % of
receivables 2.14% 2.18%
Reserves as % of net receivables 2.91% 2.92%
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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.
COMMERCIAL CREDIT COMPANY
Dated: July 30, 1997 By /s/ William T. Bozarth
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William T. Bozarth
Vice President
