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 23, 1997
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
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Item 5. Other Events.
On April 23, 1997, American General Finance Corporation
(the "Company") issued an Earnings Release announcing certain
unaudited financial results of the Company for the
three-month period ended March 31, 1997.
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 April 23, 1997
regarding certain of its unaudited
financial results for the three-month
period ended March 31, 1997.
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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: April 24, 1997 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 April 23,
1997 regarding certain of its unaudited
financial results for the three-month
period ended March 31, 1997.
NEWS RELEASE
[LOGO] CONTACT:
American General Finance Bryan A. Binyon,
A Subsidiary of American General Treasurer
Corporation American General Finance
P. O. Box 59, 812/468-5195
Evansville, Indiana 47701
AMERICAN GENERAL FINANCE CORPORATION
ANNOUNCES IMPROVED FIRST QUARTER RESULTS
HIGHLIGHTS:
Net income up 40%
Real estate loans exceed 50% of portfolio
Charge-offs and delinquencies improve
EVANSVILLE, IN, APRIL 23, 1997 American General Finance
Corporation reports first quarter 1997 net income of $42 million, a
40% increase over $30 million for the same period last year.
The improved quarterly results reflect the company's success in
stabilizing receivable credit quality during a period of industry-
wide credit deterioration.
Credit quality improvements were driven by the increased portion of
lower risk, real estate loans in the total receivables portfolio and lower
charge-offs in non-real estate and retail sales finance receivables. Real
estate loan volume generated through the branches increased real estate
loans to 51% of the total portfolio at the end of the first quarter, up from
49% at year-end 1996 and 36% from the end of the first quarter of 1996.
Total portfolio 60-day+ delinquencies at the end of the first quarter
were 3.77%, down from 3.84% at year-end 1996 and the peak of 4.29%
experienced at the end of the third quarter of 1996. The total portfolio
charge-off rate for the first quarter was 3.83%, down from first quarter
1996 charge-off of 5.53% including (and 4.62% excluding) the charge-
offs associated with finance receivable product lines now classified as
held for sale.
Management expects the action programs implemented in 1996 and
throughout 1997 will continue to improve results during the downturn
in credit quality being experienced by the finance industry. With a
lower risk portfolio, stronger branch management resources, and
increased use of risk management technology, American General Finance
is positioned for dependable, long-term profitability.
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 1,340 offices in 40 states, Puerto Rico, and the
U.S. Virgin Islands. Products and services are provided to 2.5
million low-to-middle income American families. The company offers
direct consumer and home equity loans, retail sales financing, and
other credit-related products.
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.
American General Finance Corporation
FINANCIAL HIGHLIGHTS:
(Dollars in Millions, Annualized Percentages)
For the Quarter Ended March 31, 1997 1996
Revenues:
Finance Charges $312 $362
Insurance 47 51
Other 21 22
Total Revenue $380 $435
Net Income $42 $30
Finance Charge Yield 17.07% 18.13%
Charge-off Ratio 3.83% 5.53%
Return on Assets 1.78% 1.28%
Return on Equity 12.35% 8.23%
At: 3/31/97 3/31/96
Total Assets $9,294 $9,055
Real Estate Loans $3,707 $2,781
Non-Real Estate Loans 2,310 2,529
Retail Sales Finance 1,250 1,970
Credit Cards - 541
Total Net Finance Receivables $7,267 $7,821
Assets Held for Sale $634 $0
Allowance for Finance Receivable Losses 1Q97 1Q96
Balance at beginning of period $385 $482
Provision for finance receivable losses 66 107
Charge-offs, net of recoveries (71) (112)
Balance at end of period $380 $477
60-Day+ Delinquency Ratios 3/31/97 12/31/96 3/31/96
Real Estate Loans 2.30% 2.23% 2.20%
Non-Real Estate Loans 6.39 6.43 6.07
Retail Sales Finance 2.90 3.01 3.68
Credit Cards - - 4.78
Total 3.77% 3.84% 4.05%
