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 22, 1996
AMERICAN GENERAL FINANCE CORPORATION
(Exact Name of Registrant as Specified in Charter)
Indiana 1-6155 35-0416090
(State or Other (Commission File (IRS Employer
Jurisdiction of Number) Identification
Incorporation) No.)
601 N.W. Second Street, Evansville, IN 47708
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code:
(812) 424-8031
Item 5. Other Events.
On October 22, 1996, American General Finance Corporation
(the "Company") issued an Earnings Release announcing certain
unaudited financial results of the Company for the three- and
nine-month periods ended September 30, 1996.
Item 7. Financial Statements, Pro Forma Financial
Information and Exhibits.
(c) Exhibits. The following Exhibit is filed as part of
this Report:
Exhibit
Number Description
99 Earnings Release issued by American General
Finance Corporation on October 22, 1996
regarding certain of its unaudited
financial results for the three- and
nine-month periods ended September 30,
1996.
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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
thereunto duly authorized.
AMERICAN GENERAL FINANCE CORPORATION
Dated:October 23, 1996 By: /s/ GEORGE W. SCHMIDT
George W. Schmidt
Controller and Assistant Secretary
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EXHIBIT INDEX
Exhibit
Number Description
99 Earnings Release issued by American
General Finance Corporation on October 22,
1996 regarding certain of its unaudited
financial results for the three- and
nine-month periods ended September 30,
1996.
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P.O.Box 59
Evansville, IN 47701 CONTACT:
Bryan A. Binyon
Treasurer
812/468-5195
AMERICAN GENERAL FINANCE CORPORATION
REPORTS RESULTS FOR THIRD QUARTER 1996
HIGHLIGHTS:
- - Receivables grow by more than $160 million
- - Real estate receivables increase to 42% of the
portfolio
- - Earnings increase from prior quarter
- - Allowance remains strong at 5.7% of net finance
receivables
EVANSVILLE, IN, OCTOBER 22, 1996.--American General Finance
Corporation's third quarter of 1996 produced net income of
$47 million compared to last quarter's $34 million and
third quarter 1995 net income of $56 million (which
included a $15 million non-recurring reduction in state
income taxes). The improved quarterly results reflect
continuing progress in the company's restructuring efforts,
partially offset by increased credit quality pressures
which are being experienced industry-wide.
During 1996, management's focus on rebalancing the
receivable portfolio credit risk has resulted in more than
$500 million of real estate receivables growth and lower
volumes in previously fast-growing non-real estate, retail
sales finance, private label and credit card receivables.
Total finance receivables increased $163 million in the
third quarter. At the end of the third quarter, real
estate secured receivables accounted for 42% of the
portfolio, compared to 34% at year-end 1995.
Since late 1995, credit quality has been significantly
impacted by certain liquidating private label and credit
card portfolios. Although discontinued, these
underperforming portfolios continued to affect total credit
quality results with increased delinquencies and
charge-offs during the third quarter. In contrast,
delinquencies and charge-offs in the company's core
branch-based lending operations have been relatively stable
since year-end 1995.
Total portfolio, 60-day+ delinquencies were 4.29% at the
end of the third quarter compared to 4.01% at the end of
the second quarter and 4.15% at year-end 1995.
Third-quarter total portfolio charge-offs were 5.4%,
comparable to the prior two quarters. The company continues
to maintain a conservative outlook by maintaining the
allowance for losses at 5.7% of net finance receivables at
the end of the third quarter.
While delinquencies and charge-offs are expected to remain
above historical levels for the near term, management
continues to implement improvement programs to address the
credit quality issues that resulted from the rapid growth
in 1994 and early 1995. These programs are focused on
continued improvements in underwriting, intensified
collections, and significant investments in risk
management technology.
American General Finance Corporation and its subsidiaries
are engaged in the consumer finance and related credit
insurance business. The company, headquartered in
Evansville, Indiana, has assets of $9.3 billion and
operates 1,368 offices in 39 states, Puerto Rico, and the
U.S. Virgin Islands. Products and services are provided to
over 3 million low-to-middle income American families. The
company offers direct consumer and home equity loans,
retail sales financing, credit cards, and credit and
non-credit insurance.
Certain information included in this press release is
forward looking and involves risks and uncertainties,
including general economic and competitive conditions that
could significantly impact expected results. Investors are
also directed to other risks and uncertainties discussed in
documents filed by the company with the Securities and
Exchange Commission.
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FINANCIAL HIGHLIGHTS: AGFC
(Dollars in Millions, Annualized Percentages)
<TABLE>
<S> <C> <C> <C> <C>
Quarter Quarter Nine Months NineMonths
Ended Ended Ended Ended
9-30-96 9-30-95 9-30-96 9-30-95
Revenues:
Finance Charges $350 $384 $1,066 $1,111
Insurance 52 55 155 166
Other 21 20 65 61
Total Revenues $423 $459 $1,286 $1,338
Net Income $ 47 $ 56 $ 111 $ 182
Finance Charge Yield 17.79% 18.20% 18.01% 18.03%
Charge-Off Ratio 5.42% 3.22% 5.44% 2.99%
Return on Assets 2.05% 2.35% 1.61% 2.59%
Return on Equity 13.02% 15.55% 10.27% 17.22%
</TABLE>
<TABLE>
<S> <C> <C>
At: 9/30/96 12/31/95
Total Assets $9,275 $9,485
Real Estate Loans $3,338 $2,817
Non-Real Estate Loans 2,411 2,694
Retail Sales Contracts 973 1,189
Private Label 784 943
Credit Cards 515 558
Total Net Finance Receivables $8,021 $8,201
</TABLE>
<TABLE>
Allowance for Finance Receivable Losses
<S> <C> <C> <C>
YTD
3Q96 1996 1995
Balance at beginning of period $472 $482 $226
Provision for finance receivable losses 89 296 574
Charge-offs, net of recoveries (106) (323) (311)
Other - - (7)
Balance at end of period $455 $455 $482
</TABLE>
<TABLE>
<S> <C> <C>
60-Day+ Delinquency Ratios 9/30/96 12/31/95
Real Estate Loans 2.10% 2.01%
Non-Real Estate Loans 6.70 6.37
Retail Sales Contracts 3.12 3.01
Private Label 6.29 4.77
Credit Cards 5.63 4.85
Total 4.29% 4.15%
</TABLE>
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Writer's Direct No.
(713) 831-1933
October 23, 1996
DELIVERY VIA EDGAR
Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street, N.W.
Washington, D.C. 20549-1004
Re: American General Finance Corporation (the "Company")
(File No. 1-6155)
Current Report on Form 8-K
Gentlemen:
On behalf of the Company, an indirect, wholly-owned subsidiary
of American General Corporation, we submit herewith for filing with
the Securities and Exchange Commission via EDGAR, pursuant to Section
13 of the Securities Exchange Act of 1934, as amended, the Company's
Current Report on Form 8-K dated October 22, 1996.
Very truly yours,
/s/ PAULA G. PAYNE
Paula G. Payne
Senior Counsel
Enclosure
cc: The New York Stock Exchange, Inc.
Arizona Corporation Commission
