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, 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 October 22, 1997, 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, 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 October 22, 1997
regarding certain of its unaudited
financial results for the three- and
nine-month periods ended September 30,
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: October 22, 1997 By:/s/ GEORGE W. SCHMIDT
George W. Schmidt
Controller and Assistant
Secretary
PAGE
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EXHIBIT INDEX
Exhibit
Number <PAGE>
Description <PAGE>
<PAGE>
99
<PAGE>
Earnings Release issued by American
General Finance Corporation on October 22,
1997 regarding certain of its unaudited
financial results for the three- and
nine-month periods ended September 30,
1997.
<PAGE>
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NEWS RELEASE
[LOGO]
American General Finance
A Subsidiary of American General Corporation
P. O. Box 59, Evansville, Indiana 47701
Contact: Bryan A. Binyon
Treasurer
812/468-5195
AMERICAN GENERAL FINANCE CORPORATION
REPORTS RESULTS FOR THIRD QUARTER 1997
HIGHLIGHTS:
Receivable growth
Improved charge-offs
Continued expense reduction
EVANSVILLE, IN, OCTOBER 22, 1997-American General Finance
Corporation reports third quarter 1997 operating earnings
increased to $43 million from $42 million for the second
quarter 1997.
The receivable portfolio grew by $119 million during the
third quarter. Portfolio growth efforts continued to
emphasize real estate which comprised more than 51% of
receivables at quarter end. The benefit of emphasizing a
stronger collateral product mix has been evidenced in
improving charge-offs. The percentage of receivables
charged-off in the third quarter of 1997 was 3.28%, a
significant improvement from the 3.83% and 3.70% of the
first two quarters of 1997 and the 5.42% of the same
quarter last year.
60+ day delinquency at September 30 was 3.85%, relatively
unchanged from year-end 1996 and improved from 4.29% a year
ago. AGFC's allowance at quarter end was 5.05% of
receivables, one of the highest in the industry.
The management actions taken over recent quarters continue
to result in improved credit quality and operating
earnings. The company remains focused on quality
growth, risk management technology, and operating
efficiency as the keys to growth in earnings.
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 $8.8 billion and
operates 1,311 offices in 40 states, Puerto Rico, and the
U.S. Virgin Islands. Products and services are provided to
more than two million American families. The company
offers consumer and home equity loans, retail sales
financing, and other credit-related products.
Certain information included in this news 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 Three Months For the Nine Months
Ended September 30 Ended September 30
1997 1996 1997 1996
Total Operating
Revenues $377 $422 $1,134 $1,287
Interest Expense 115 116 335 361
Operating Expenses 117 120 346 374
Provision for Finance Receivable
Losses 54 88 182 295
Insurance Benefits
and Losses 23 26 69 81
Total Expenses $309 $350 $932 $1,111
Pretax Operating
Earnings 68 72 202 176
Income Tax
Expense 25 25 74 64
Operating Earnings $43 $47 $128 $112
Loss on Sale of Non-Strategic
Assets - - (27) -
Net Realized Investment
Gains(Losses) - - - (1)
Net Income $43 $47 $101 $111
Finance Charge
Yield 16.82% 17.79% 16.95% 18.01%
Charge-off Ratio 3.28% 5.42% 3.61% 5.44%
Operating Return
on Assets 2.00% 2.01% 1.89% 1.62%
Operating Return
on Equity 13.29% 13.01% 12.84% 10.43%
AT: 9/30/97 9/30/96
Total Assets $8,770 $9,275
Real Estate Loans $3,761 $3,338
Non-Real Estate Loans 2,409 2,411
Retail Sales Finance 1,176 1,757
Credit Cards - 515
Total Net Finance
Receivables $7,346 8,021
Allowance for Finance
Receivable Losses 3Q97 3Q96
Balance at beginning
of period $376 $472
Provision for finance
receivable losses 54 88
Charge-offs, net of
recoveries (60) (105)
Balance at end of
period $370 $455
9/30/97 9/30/96
Allowance as a % of
Finance Receivables 5.05% 5.68%
9/30/97 12/31/96 9/30/96
60-Day+ Delinquency
Ratios 3.85% 3.84% 4.29%
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