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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) January 26, 1998
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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
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Results of Operations
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The net income of Commercial Credit Company ("the Company") for the three months
and year ended December 31, 1997 was $65.1 million and $240.1 million,
respectively, compared to $46.5 million and $195.8 million, respectively, in the
corresponding 1996 periods. The Company's income before income taxes for the
three months and year ended December 31, 1997 was $100.2 million and $369.8
million, respectively, compared to $69.7 million and $297.0 million,
respectively, in the corresponding 1996 periods. The Company's revenues for the
three months and year ended December 31, 1997 were $484.9 million and $1,741.1
million, respectively, compared to $370.1 million and $1,441.1 million,
respectively, in the corresponding 1996 periods.
At December 31, 1997 the Company had total debt consisting of certificates of
deposit of $57.3 million, short-term borrowings of $3,871.6 million and
long-term debt of $6,300.0 million. In addition the Company's total
stockholder's equity at December 31, 1997 was $1,854.4 million.
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COMMERCIAL CREDIT COMPANY
SELECTED FINANCIAL DATA
(In millions of dollars)
Three months ended Year ended
Business Segment Data December 31, December 31,
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1997 1996 1997 1996
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Revenues:
Consumer Finance $482.2 $363.1 $1,684.7 $1,408.9
Corporate and Other 2.7 7.0 56.4 32.2
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Revenues $484.9 $370.1 $1,741.1 $1,441.1
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Net Income:
Consumer Finance $ 69.8 $ 52.0 $ 235.7 $ 221.8
Corporate and Other (4.7) (5.5) 4.4 (26.0)
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Net Income $ 65.1 $ 46.5 $ 240.1 $ 195.8
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Average yield 14.68% 15.00% 14.58% 15.24%
Average net interest margin 8.31% 8.45% 8.14% 8.64%
Charge-off rate 2.42% 2.95% 2.65% 2.91%
As of December 31,
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1997 1996
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Net receivables
Real estate - secured loans $ 5,107.6 $3,456.7
Personal loans 3,922.2 3,199.6
Credit cards (1) 1,164.6 907.1
Sales finance and other 857.0 507.7
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Consumer finance receivables,
net of unearned finance charges 11,051.4 8,071.1
Accrued interest receivable 85.6 52.7
Allowance for credit losses (321.4) (239.3)
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Consumer finance receivables, net $10,815.6 $7,884.5
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60+ days past due as % of
receivables 2.35% 2.38%
Reserves as % of net receivables 2.91% 2.97%
(1) At December 31, 1997, excludes $186 million held for securitization.
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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: January 26, 1998 By /s/ William T. Bozarth
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William T. Bozarth
Vice President
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