UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended July 31, 1998
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
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Commission File Number 1-4146-1
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NAVISTAR FINANCIAL CORPORATION
(Exact name of Registrant as specified in its charter)
Delaware 36-2472404
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
2850 West Golf Road Rolling Meadows, Illinois 60008
(Address of principal executive offices) (Zip Code)
Registrant's telephone number including area code 847-734-4000
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
APPLICABLE ONLY TO ISSUERS INVOLVED
IN BANKRUPTCY PROCEEDINGS DURING
THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15 (d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes No
APPLICABLE ONLY TO CORPORATE ISSUERS:
As of August 31, 1998, the number of shares outstanding of the registrant's
common stock was 1,600,000.
THE REGISTRANT IS A WHOLLY-OWNED SUBSIDIARY OF NAVISTAR INTERNATIONAL
TRANSPORTATION CORP. AND MEETS THE CONDITIONS SET FORTH IN GENERAL
INSTRUCTIONS H(1)(a) AND (b) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM
WITH THE REDUCED DISCLOSURE FORMAT.
<PAGE>
NAVISTAR FINANCIAL CORPORATION
AND SUBSIDIARIES
INDEX
Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements:
Statements of Consolidated Income and Retained Earnings --
Three Months and Nine Months Ended July 31, 1998 and 1997........ 2
Statements of Consolidated Financial Condition --
July 31, 1998; October 31, 1997; and July 31, 1997............... 3
Statements of Consolidated Cash Flow --
Nine Months Ended July 31, 1998 and 1997......................... 4
Notes to Consolidated Financial Statements....................... 5
Item 2. Management's Discussion and Analysis of Results of
Operations and Financial Condition........................... 7
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K................................. 11
Signature ............................................................. 11
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
NAVISTAR FINANCIAL CORPORATION AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED INCOME AND RETAINED EARNINGS (Unaudited)
(Millions of dollars)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
July 31 July 31
1998 1997 1998 1997
<S> <C> <C> <C> <C>
Revenue
Retail notes and lease financing...$ 40.0 $ 28.7 $ 99.8 $ 80.6
Wholesale notes..................... 13.2 9.3 33.0 27.8
Accounts............................ 8.5 8.7 25.2 23.0
Servicing fee income................ 5.2 5.1 15.9 15.2
Insurance premiums earned........... 8.5 8.4 24.4 24.9
Marketable securities............... 3.9 2.3 7.7 6.4
Total........................ 79.3 62.5 206.0 177.9
Expense
Cost of borrowing
Interest........................ 23.2 16.7 59.2 48.2
Other........................... 2.0 2.2 5.5 5.2
Total........................ 25.2 18.9 64.7 53.4
Credit, collection
and administrative................. 9.3 7.9 25.9 22.4
Provision for (recovery of) losses
on receivables.................... (2.6) 0.3 (1.4) 1.5
Insurance claims and underwriting... 10.6 9.2 27.7 26.8
Depreciation and other.............. 7.9 4.2 21.0 14.7
Total........................ 50.4 40.5 137.9 118.8
Income Before Taxes on Income......... 28.9 22.0 68.1 59.1
Taxes on Income....................... 11.2 8.6 26.3 23.0
Net Income 17.7 13.4 41.8 36.1
Retained Earnings
Beginning of period...............110.2 100.1 113.1 107.4
Dividends paid.................... 15.0 5.0 42.0 35.0
End of period....................$112.9 $108.5 $112.9 $108.5
</TABLE>
See Notes to Consolidated Financial Statements.
<PAGE>
NAVISTAR FINANCIAL CORPORATION AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED FINANCIAL CONDITION (Unaudited)
(Millions of dollars)
<TABLE>
<CAPTION>
July 31 October 31 July 31
1998 1997 1997
ASSETS
<S> <C> <C> <C>
Cash and Cash Equivalents................ $ 4.9 $ 10.7 $ 8.9
Marketable Securities.................... 110.0 114.2 115.6
Finance Receivables
Retail notes and lease financing..... 624.6 706.5 453.3
Wholesale notes...................... 66.6 45.7 179.9
Accounts............................. 316.5 471.0 336.8
1,007.7 1,223.2 970.0
Allowance for losses................. (10.3) (12.0) (9.3)
Finance Receivables, Net......... 997.4 1,211.2 960.7
Amounts Due from Sales of Receivables.... 259.9 233.3 219.3
Equipment on Operating Leases, Net....... 213.4 124.1 116.0
Repossessions............................ 16.3 13.0 24.5
Other Assets............................. 82.6 104.1 72.8
Total Assets............................. $1,684.5 $1,810.6 $1,517.8
LIABILITIES AND SHAREOWNER'S EQUITY
Short-Term Borrowings.................... $ 148.8 $ 141.0 $ 112.3
Net Payable to Affiliates................ 119.9 131.5 114.0
Other Liabilities........................ 48.2 59.8 51.8
Senior and Subordinated Debt............. 972.7 1,082.7 844.6
Dealers' Reserves........................ 24.0 22.2 22.5
Unpaid Insurance Claims
and Unearned Premiums.................. 84.7 85.6 89.5
Shareowner's Equity
Capital stock (Par value $1.00, 1,600,000
shares issued and outstanding)
and paid-in capital.............. 171.0 171.0 171.0
Retained Earnings.................... 112.9 113.1 108.5
Unrealized gains on
marketable securities.............. 2.3 3.7 3.6
Total......................... 286.2 287.8 283.1
Total Liabilities
and Shareowner's Equity............... $1,684.5 $1,810.6 $1,517.8
</TABLE>
See Notes to Consolidated Financial Statements.
<PAGE>
NAVISTAR FINANCIAL CORPORATION AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED CASH FLOW (Unaudited)
(Millions of dollars)
<TABLE>
<CAPTION>
Nine Months Ended
July 31
1998 1997
<S> <C> <C>
Cash Flow From Operations
Net income . . . . . . . . . . . . . . . . . . . . .$ 41.8 $ 36.1
Adjustments to reconcile net income to cash
provided from operations:
Gains on sales of receivables . . . . . . . . . . (15.3) (13.4)
Depreciation and amortization . . . . . . . . . . 25.0 16.4
Provision for (recovery of) losses on receivables. (1.4) 1.5
(Decrease)increase in net payable to affiliates. . (11.6) 89.5
Other . . . . . . . . . . . . . . . . . . . . . . (14.3) (20.8)
Total . . . . . . . . . . . . . . . . . . . . 24.2 109.3
Cash Flow From Investing Activities
Proceeds from sold retail notes . . . . . . . . . . . 931.9 938.1
Purchase of retail notes and lease receivables . . .(918.7) (677.3)
Principal collections on retail notes and
lease receivables . . . . . . . . . . . . . . . . . 68.5 43.3
Acquisitions under (over) cash collections of
wholesale notes and accounts receivable . . . . . 118.7 (28.7)
Purchase of marketable securities . . . . . . . . . . (33.2) (67.9)
Proceeds from sales and maturities of
marketable securities . . . . . . . . . . . . . . 37.8 86.0
Purchase of equipment leased to others . . . . . . . .(124.9) (50.2)
Sale of equipment leased to others . . . . . . . . . . 13.3 20.9
Total . . . . . . . . . . . . . . . . . . . . 93.4 264.2
Cash Flow From Financing Activities
Net increase in short-term borrowings . . . . . . . . 7.8 12.9
Net decrease in bank revolving credit facility usage . (48.0) (334.0)
Net decrease in asset-backed commercial
paper facility usage . . . . . . . . . . . . . . . (97.1) (173.0)
Proceeds from long-term debt . . . . . . . . . . . . . 91.5 176.4
Principal payments of long-term debt . . . . . . . . . (35.6) (18.6)
Dividends paid to Transportation . . . . . . . . . . . (42.0) (35.0)
Total . . . . . . . . . . . . . . . . . . . .(123.4) (371.3)
(Decrease) increase in Cash and Cash Equivalents . . . . (5.8) 2.2
Cash and Cash Equivalents at Beginning of Period . . . . 10.7 6.7
Cash and Cash Equivalents at End of Period . . . . . . $ 4.9 $ 8.9
Supplemental disclosure of cash flow information
Interest paid . . . . . . . . . . . . . . . . . . . $ 65.5 $ 49.5
Income taxes paid . . . . . . . . . . . . . . . . . $ 25.9 $ 22.1
</TABLE>
See Notes to Consolidated Financial Statements.
<PAGE>
NAVISTAR FINANCIAL CORPORATION
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. The consolidated financial statements include the accounts of Navistar
Financial Corporation ("NFC") and its wholly-owned subsidiaries
("Corporation"). Navistar International Transportation Corp.
("Transportation"), which is wholly-owned by Navistar International
Corporation ("Navistar"), is the parent company of the Corporation.
The accompanying unaudited financial statements and notes have been
prepared in accordance with the accounting policies set forth in the
Corporation's 1997 Annual Report on Form 10-K and should be read in
conjunction with the Notes to the Consolidated Financial Statements
therein.
In the opinion of management, these interim financial statements reflect
all adjustments, consisting of normal recurring accruals, necessary to
present fairly the results of operations, financial condition and cash flow
for the interim periods presented. Interim results are not necessarily
indicative of results to be expected for the full year. Certain 1997
amounts have been reclassified to conform with the presentation used in the
1998 financial statements.
2. Finance receivable balances do not include receivables sold by the
Corporation to public and private investors with limited recourse
provisions. Outstanding sold receivable balances are as follows:
<TABLE>
<CAPTION>
July 31 October 31 July 31
1998 1997 1997
($ Millions)
<S> <C> <C> <C>
Retail notes . . . . . . . . . $1,670.7 $1,422.2 $1,634.6
Wholesale notes . . . . . . . 672.8 545.5 400.0
Total . . . . . . . . . . $2,343.5 $1,967.7 $2,034.6
</TABLE>
In the first three quarters of fiscal 1998, in two separate sales, the
Corporation sold a total of $1,001 million of retail notes, net of unearned
finance income, through Navistar Financial Retail Receivables Corporation,
to two individual owner trusts which, in turn, sold notes to investors.
Aggregate gains of $15.3 million were recognized on the sales. The proceeds
of $959 million, net of underwriting fees and credit enhancements, were
used by the Corporation for general working capital purposes.
In July 1998, Navistar Financial Securities Corporation, a wholly owned
subsidiary of the Corporation, issued a $200 million tranche of investor
certificates which matures in July 2008. The proceeds of $197 million, net
of underwriting fees and credit enhancements, were used for general working
capital purposes.
<PAGE>
NAVISTAR FINANCIAL CORPORATION
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
The allowance for losses on receivables is summarized as follows:
<TABLE>
<CAPTION>
July 31 October 31 July 31
1998 1997 1997
($ Millions)
<S> <C> <C> <C>
Allowance pertaining to:
Owned notes . . . . . . . . . $10.3 $12.0 $ 9.3
Sold notes . . . . . . . . . 14.4 12.5 15.2
Total . . . . . . . . . . $24.7 $24.5 $24.5
</TABLE>
3. The Corporation has entered into $450 million of forward treasury locks in
anticipation of a November 1998 sale of retail receivables. These hedge
agreements will be closed in conjunction with the pricing of the sale and
any resulting gain or loss will be included in the gain or loss on the sale
of receivables recognized in November 1998.
4. In June 1998, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 133, "Accounting for Derivative
Instruments and Hedging Activities", to establish accounting and reporting
standards for derivative instruments. This statement requires recognition
of all derivative instruments in the statement of financial position as
either assets or liabilities, measured at fair value, and is effective for
fiscal years beginning after June 15, 1999. This statement additionally
requires changes in the fair value of derivatives to be recorded each
period in current earnings or comprehensive income depending on the
intended use of the derivatives. The Corporation is currently assessing
the impact of this statement on its results of operations, financial
condition and cash flows.
<PAGE>
NAVISTAR FINANCIAL CORPORATION
AND SUBSIDIARIES
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
AND FINANCIAL CONDITION
Certain statements under this caption constitute "forward-looking statements"
under the Securities Reform Act, which involve risks and uncertainties. Navistar
Financial Corporation's actual results may differ significantly from the results
discussed in such forward-looking statements. Factors that might cause such a
difference include, but are not limited to, those discussed under the heading
"Business Outlook".
Financing Volume
In the first nine months of fiscal 1998 industry retail sales for Class 5
through 8 trucks was approximately 14% higher than 1997. The Corporation's
retail financing acquisitions during the first nine months of fiscal 1998,
including retail notes and finance and operating leases, were $1,044 million,
44% higher than 1997. The increase is primarily the result of the strong truck
industry demand and an increase in the Corporation's finance market share of new
International trucks sold in the U.S. from 13.3% in 1997 to 16.5% in fiscal
1998. Serviced retail notes and lease financing balances were $2,514 million and
$2,208 million at July 31, 1998 and 1997, respectively.
In spite of the continued strong liquidity in the commercial financing market,
the Corporation provided 94% of the wholesale financing of new trucks sold to
Transportation's dealers during the first nine months of fiscal 1998 and 1997.
Serviced wholesale note balances were $854 million at July 31, 1998, a 32%
increase compared to July 31, 1997 due to the strong industry demand.
Results of Operations
The components of net income for the three and nine month periods ended July 31
are as follows:
<TABLE>
<CAPTION.
Three Months Nine Months
Ended July 31 Ended July 31
1998 1997 1998 1997
<S> <C> <C> <C> <C>
Income before income taxes:
Finance operations. . . . . . . . . . . $27.3 $20.5 $63.9 $54.9
Insurance operations. . . . . . . . . . 1.6 1.5 4.2 4.2
Income before taxes. . . . . . . . . 28.9 22.0 68.1 59.1
Taxes on income . . . . . . . . . . . . . 11.2 8.6 26.3 23.0
Net income . . . . . . . . . . . . . $17.7 $13.4 $41.8 $36.1
</TABLE>
1998 pretax income was $29 million for the third quarter and $68 million fiscal
year to date, $7 million and $9 million higher than the respective periods in
1997. The improvements were primarily a result of higher wholesale financing
balances in response to strong industry demand, loss recoveries on retail notes
and higher gains on sales of receivables offset, in part, by lower financing
margins primarily due to the highly competitive commercial financing market.
<PAGE>
NAVISTAR FINANCIAL CORPORATION
AND SUBSIDIARIES
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
AND FINANCIAL CONDITION (continued)
Results of Operations (continued)
Finance Operations:
Retail note and lease revenue increased $19 million to $100 million in the first
nine months of 1998 compared to 1997. The increase is primarily the result of
higher average finance receivables due to an increase in Transportation's retail
sales and an increase in operating lease balances due to a shift toward lease
financing. Included in retail note and lease revenue is operating lease revenue
of $32 million and $21 million in 1998 and 1997, respectively. For operating
leases, the Corporation recognizes the entire lease payment as revenue and
records depreciation expense on the assets under lease.
Wholesale note revenue was $33 million in the first nine months of 1998 compared
to $28 million in fiscal 1997 due primarily to the higher level of wholesale
financing activity.
Borrowing costs increased $11 million to $65 million during the first nine
months of 1998 primarily as a result of higher average receivable funding
requirements. The Corporation's weighted average interest rate on all debt
increased to 6.4% from 6.3% in the first nine months of 1997.
Credit, collection and administrative expenses increased to $26 million during
the first nine months of 1998 from $22 million in 1997. The increase in 1998 was
primarily due to employee related costs.
Provision for losses on receivables was a net recovery of $1 million for the
first nine months of fiscal 1998, a $3 million improvement compared to 1997
which is primarily due to loss recoveries related to one large obligor.
Depreciation and other expenses during the first nine months of 1998 was $21
million compared to $15 million in the comparable period of 1997. The increase
is primarily the result of a larger investment in equipment under operating
leases.
Insurance Operations:
Harco National Insurance Company's pretax income in the first three quarters of
fiscal 1998 was comparable to that of 1997. Gains on sales of investments and
favorable loss experience in the liability lines were offset by a slight
decrease in earned premium revenue and increased operating expenses.
<PAGE>
NAVISTAR FINANCIAL CORPORATION
AND SUBSIDIARIES
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
AND FINANCIAL CONDITION (continued)
Liquidity and Funds Management
The Corporation's operations are substantially dependent upon the production and
sale of Transportation's truck products in the United States. The Corporation
has traditionally obtained the funds to provide financing to Transportation's
dealers and retail customers from sales of receivables, issuance of commercial
paper, short and long-term bank borrowings, medium and long-term debt issues and
equity capital. The Corporation's current debt ratings have made sales of
finance receivables the most economical source of funding. The Corporation's
insurance operation generates its funds through internal operations and has no
external borrowings.
In January 1998, Moody's, Standard and Poors and Duff and Phelps raised the
Corporation's senior debt ratings from Ba2, BB and BB+ to Ba1, BB+ and BBB-,
respectively, while the subordinated debt ratings were also raised from B1, B+
and BB to Ba3, BB- and BB+, respectively.
Operations provided $24 million in cash in the first nine months of 1998 as net
income was partially offset by lower accounts payable and other activities.
Investing activities provided $93 million in cash during this period as proceeds
from sold notes and cash collections exceeded the purchase of receivables and
equipment leased to others. The Corporation used cash provided by operations and
investing activities to reduce outstanding debt balances and to pay dividends of
$42 million to Transportation.
Receivable sales were a significant source of funding in 1998 and 1997. Through
the asset-backed public market, the Corporation has been able to fund fixed rate
retail note receivables at rates offered to companies with investment grade
ratings. During the first nine months of fiscal 1998 and 1997 the Corporation
sold $1,001 million and $987 million, respectively, of retail notes, through
Navistar Financial Retail Receivables Corporation ("NFRRC"), a wholly-owned
subsidiary, to owner trusts which, in turn, sold notes and certificates to
investors. The amount remaining under NFRRC's shelf registration as of July 31,
1998 was $472 million. On August 28, 1998, NFRRC filed a shelf registration with
the Securities and Exchange Commission (SEC) providing for the issuance of an
additional $2,500 million of asset-backed securities. Upon acceptance of the
additional shelf registration by the SEC, NFRRC will have $2,972 million
available for the issuance of asset-backed securities.
In July 1998, Navistar Financial Securities Corporation, a wholly-owned
subsidiary of the Corporation, issued a $200 million tranche of investor
certificates which matures in July 2008. At July 31, 1998, the Corporation has a
revolving wholesale note trust that provides for the funding of $700 million of
wholesale notes. All eligible wholesale notes are sold to the trust.
At July 31, 1998, available funding under the amended and restated credit
facility and the asset-backed commercial paper facility was $716 million, of
which $149 million provided funding backup for the outstanding short-term debt.
The remaining $567 million, when combined with unrestricted cash and cash
equivalents, made $572 million available to fund the general business purposes
of the Corporation.
<PAGE>
NAVISTAR FINANCIAL CORPORATION
AND SUBSIDIARIES
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
AND FINANCIAL CONDITION (continued)
Year 2000
The Corporation has identified all significant applications that will require
modification to ensure Year 2000 compliance. Internal and external resources are
being used to make the required modifications and test Year 2000 compliance. The
Corporation plans to complete the modifications and testing process of all
significant applications by July 1999, which is prior to any anticipated impact
on its operating systems. The total cost of the Year 2000 project has not been
and is not anticipated to be material to the Corporation's financial position or
results of operations and will be funded through operating cash flows.
The costs of the project and the date on which the Corporation believes it will
complete the Year 2000 modifications are based on management's best estimates,
which were derived utilizing numerous assumptions of future events, including
the continued availability of certain resources, third party modification plans
and other factors. However, there can be no guarantee that these estimates will
be achieved and actual results could differ materially from those anticipated.
Specific factors that might cause such material differences include, but are not
limited to, the availability and cost of personnel trained in this area, the
ability to locate and correct all relevant computer codes and similar
uncertainties.
New Accounting Standards
In June 1998, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 133, "Accounting for Derivative Instruments
and Hedging Activities", to establish accounting and reporting standards for
derivative instruments. This statement requires recognition of all derivative
instruments in the statement of financial position as either assets or
liabilities, measured at fair value, and is effective for fiscal years
beginning after June 15, 1999. This statement additionally requires changes
in the fair value of derivatives to be recorded each period in current
earnings or comprehensive income depending on the intended use of the
derivatives. The Corporation is currently assessing the impact of this
statement on its results of operations, financial condition and cash flows.
Business Outlook
Navistar forecasts industry demand for fiscal 1998 for Class 5 through 8 trucks
to increase approximately 12% over 1997 levels. The competitive commercial
financing market will continue to put pressure on the Corporation's retail and
wholesale financing activity and margins.
Management believes that collections on the outstanding receivables portfolio
plus cash available from the Corporation's various funding sources will permit
Navistar Financial to meet the financing requirements of Transportation's
dealers and retail customers through 1998 and beyond.
<PAGE>
NAVISTAR FINANCIAL CORPORATION
AND SUBSIDIARIES
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
No reports on Form 8-K were filed during the nine months ended
July 31, 1998.
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.
Navistar Financial Corporation
(Registrant)
Date September 11, 1998 /s/P. E. Cochran
P. E. Cochran
Vice President and Controller
(Principal Accounting Officer)
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
STATEMENT OF CONSOLIDATED INCOME AND RETAINED EARNINGS AND THE STATEMENT
OF CONSOLIDATED FINANCIAL CONDITION AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> OCT-31-1998<F1>
<PERIOD-END> JUL-31-1998
<CASH> 4,900
<SECURITIES> 110,000
<RECEIVABLES> 1,007,700
<ALLOWANCES> (10,300)
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 14,100
<DEPRECIATION> (8,900)
<TOTAL-ASSETS> 1,684,500
<CURRENT-LIABILITIES> 0
<BONDS> 972,700
0
0
<COMMON> 171,000
<OTHER-SE> 115,200
<TOTAL-LIABILITY-AND-EQUITY> 1,684,500
<SALES> 0
<TOTAL-REVENUES> 79,300
<CGS> 0
<TOTAL-COSTS> 21,900
<OTHER-EXPENSES> 7,900
<LOSS-PROVISION> (2,600)
<INTEREST-EXPENSE> 23,200
<INCOME-PRETAX> 28,900
<INCOME-TAX> (11,200)
<INCOME-CONTINUING> 17,700
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 17,700
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>THE CORPORATION'S STATEMENT OF FINANCIAL CONDITION IS UNCLASSIFIED;
THEREFORE, THE DISTINCTION BETWEEN CURRENT AND LONG-TERM ASSETS AND
LIABILITIES IS NOT AVAILABLE.
</FN>
</TABLE>
