UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------
FORM 10-Q
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|X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 28, 1996
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 0-14804
----------------------
GENERAL ELECTRIC CAPITAL SERVICES, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 06-1109503
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
260 LONG RIDGE ROAD, STAMFORD, CONNECTICUT 06927
(Address of principal executive offices) (Zip Code)
(203) 357-4000
(Registrant's telephone number, including area code)
----------------------
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 (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes x No __
At November 8, 1996, 101 shares of common stock with a par value of $10,000 were
outstanding.
REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND (b)
OF FORM 10-Q AND IS THEREFORE FILING THIS FORM 10-Q WITH THE REDUCED DISCLOSURE
FORMAT.
<PAGE>
TABLE OF CONTENTS
PAGE
PART I - FINANCIAL INFORMATION.
Item 1. Financial Statements........................................... 1
Item 2. Management's Discussion and Analysis of Results of Operations.. 5
Exhibit 12. Computation of Ratio of Earnings to Fixed Charges and
Computation of Ratio of Earnings to Combined Fixed Charges and
Preferred Stock Dividends............................................. 7
PART II - OTHER INFORMATION.
Item 6. Exhibits and Reports on Form 8-K............................... 8
Signatures............................................................. 9
Index to Exhibits...................................................... 10
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES
CONDENSED STATEMENT OF CURRENT AND RETAINED EARNINGS
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
--------------------- ----------------------
(In millions) SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER
28, 1996 30, 1995 28, 1996 30, 1995
-------- -------- -------- --------
<S> <C> <C> <C> <C>
EARNED INCOME .................................................. $ 8,449 $ 7,099 $ 23,151 $ 19,268
-------- -------- -------- --------
EXPENSES
Interest ....................................................... 1,756 1,726 5,280 4,946
Operating and administrative ................................... 3,110 1,913 7,661 5,550
Insurance losses and policyholder and annuity benefits ......... 1,553 1,540 4,713 3,854
Provision for losses on financing receivables .................. 254 352 695 710
Depreciation and amortization of buildings and
equipment and equipment on operating leases ................... 559 491 1,579 1,434
Minority interest in net earnings of consolidated affiliates ... 38 29 120 82
-------- -------- -------- --------
7,270 6,051 20,048 16,576
-------- -------- -------- --------
EARNINGS
Earnings before income taxes ................................... 1,179 1,048 3,103 2,692
Provision for income taxes ..................................... (363) (337) (954) (850)
-------- -------- -------- --------
NET EARNINGS ................................................... 816 711 2,149 1,842
Dividends ...................................................... (284) (247) (748) (645)
Retained earnings at beginning of period ....................... 10,387 8,927 9,518 8,194
-------- -------- -------- --------
RETAINED EARNINGS AT END OF PERIOD ............................. $ 10,919 $ 9,391 $ 10,919 $ 9,391
======== ======== ======== ========
</TABLE>
See Notes to Condensed, Consolidated Financial Statements.
1
<PAGE>
ITEM 1. FINANCIAL STATEMENTS (Continued).
GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES
CONDENSED STATEMENT OF FINANCIAL POSITION
<TABLE>
<CAPTION>
(In millions) SEPTEMBER 28, DECEMBER 31,
1996 1995
------------- ------------
(UNAUDITED)
<S> <C> <C>
ASSETS
Cash and equivalents ................................... $ 3,522 $ 1,949
Investment securities .................................. 48,273 41,063
Financing receivables:
Time sales and loans, net of deferred income ....... 59,902 59,591
Investment in financing leases, net of
deferred income ................................... 37,269 36,200
-------- --------
97,171 95,791
Allowance for losses on financing receivables ...... (2,556) (2,519)
-------- --------
Financing receivables - net .................... 94,615 93,272
Other receivables - net ................................ 13,188 12,897
Equipment on operating leases (at cost), less
accumulated amortization of $5,336 and $4,670 ......... 15,813 13,793
Other assets ........................................... 28,928 22,755
-------- --------
TOTAL ASSETS ........................................... $204,339 $185,729
======== ========
LIABILITIES AND EQUITY
Short-term borrowings .................................. $ 71,610 $ 62,808
Long-term borrowings:
Senior .............................................. 46,191 47,794
Subordinated ........................................ 996 996
Insurance liabilities, reserves and annuity benefits ... 48,901 39,699
Other liabilities ...................................... 13,219 12,264
Deferred income taxes .................................. 7,245 6,872
-------- --------
Total liabilities ................................... 188,162 170,433
-------- --------
Minority interest in equity of consolidated affiliates . 2,589 2,522
-------- --------
Capital stock .......................................... 11 11
Additional paid-in capital ............................. 2,316 2,314
Retained earnings ...................................... 10,919 9,518
Unrealized gains on investment securities .............. 431 989
Foreign currency translation adjustments ............... (89) (58)
-------- --------
Total equity ........................................... 13,588 12,774
-------- --------
TOTAL LIABILITIES AND EQUITY ........................... $204,339 $185,729
======== ========
</TABLE>
See Notes to Condensed, Consolidated Financial Statements.
2
<PAGE>
ITEM 1. FINANCIAL STATEMENTS (Continued).
GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES
CONDENSED STATEMENT OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
----------------------
(IN MILLIONS) SEPTEMBER SEPTEMBER
28, 1996 30, 1995
--------- ---------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings ........................................... $ 2,149 $ 1,842
Adjustments to reconcile net earnings to cash
provided from operating activities:
Provision for losses on financing receivables ...... 695 710
Depreciation and amortization of buildings and
equipment and equipment on operating leases ....... 1,579 1,434
Other - net ........................................ 1,962 2,171
-------- --------
Cash provided from operating activities ......... 6,385 6,157
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Increase in loans to customers ......................... (38,262) (33,141)
Principal collections from customers ................... 39,080 31,415
Investment in assets on financing leases ............... (9,249) (10,703)
Principal collections on financing leases .............. 8,345 5,968
Net increase in credit card receivables ................ (950) (1,067)
Buildings and equipment and equipment on
operating leases:
- additions ........................................ (4,075) (4,214)
- dispositions ..................................... 683 2,074
Payments for principal businesses purchased, net of
cash acquired ......................................... (2,329) (3,236)
Proceeds from principal businesses disposed ............ -- 575
Purchases of investment securities by insurance
affiliates and annuity businesses ..................... (11,264) (10,153)
Dispositions and maturities of investment securities
by insurance affiliates and annuity businesses ........ 10,454 9,358
Other - net ............................................ (3,544) (1,552)
-------- --------
Cash used for investing activities ............... (11,111) (14,676)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in borrowings (maturities 90 days or less) .. 7,607 (6,535)
Newly issued debt
- short-term (maturities 91-365 days) .............. 3,693 1,862
- long-term senior ................................. 13,553 26,506
- long-term subordinated ........................... -- 298
Proceeds - non-recourse, leveraged lease debt .......... 505 257
Repayments and other reductions
- short-term (maturities 91-365 days) .............. (17,682) (11,336)
- long-term senior ................................. (780) (597)
Principal payments - non-recourse, leveraged lease debt. (227) (235)
Proceeds from sales of investment and annuity contracts. 2,154 1,124
Redemption of investment and annuity contracts ......... (1,901) (1,956)
Dividends paid ......................................... (748) (645)
Issuance of variable cumulative preferred stock by
consolidated affiliates ............................... 125 645
-------- --------
Cash provided from financing activities ......... 6,299 9,388
-------- --------
INCREASE IN CASH AND EQUIVALENTS ....................... 1,573 869
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD ............ 1,949 1,218
-------- --------
CASH AND EQUIVALENTS AT END OF PERIOD .................. $ 3,522 $ 2,087
======== ========
</TABLE>
See Notes to Condensed, Consolidated Financial Statements.
3
<PAGE>
ITEM 1. FINANCIAL STATEMENTS (Continued).
GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES
NOTES TO CONDENSED, CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. The accompanying condensed quarterly financial statements represent the
adding together of General Electric Capital Services, Inc. and all
majority-owned and controlled affiliates (collectively called "the
Corporation" or "GECS"). All significant transactions among the parent and
consolidated affiliates have been eliminated. Certain prior period data
have been reclassified to conform to the current period presentation.
2. The condensed, consolidated quarterly financial statements are unaudited.
These statements include all adjustments (consisting of normal recurring
accruals) considered necessary by management to present a fair statement
of the results of operations, financial position and cash flows. The
results reported in these condensed, consolidated financial statements
should not be regarded as necessarily indicative of results that may be
expected for the entire year.
3. Two newly issued accounting standards were adopted in the first quarter of
1996 and did not have a material effect on the financial position or
results of operations of the Corporation.
Statement of Financial Accounting Standards (SFAS) No. 121, Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to be
Disposed Of, requires that certain long-lived assets be reviewed for
impairment when events or circumstances indicate that the carrying amounts
of the assets may not be recoverable. If such review indicates that the
carrying amount of an asset exceeds the sum of its expected future cash
flows, the asset's carrying value is written down to fair value.
Long-lived assets to be disposed of are reported at the lower of carrying
amount or fair value less cost to sell.
SFAS No. 122, Accounting for Mortgage Servicing Rights, requires that
capitalized rights to service mortgage loans be assessed for impairment by
individual risk stratum by comparing each stratum's carrying amount with
its fair value. Strata are based on the predominant risk characteristics
of the underlying loans, which include loan type and note rate. Fair
values are estimated based on discounted anticipated future net cash flows
considering market consensus for loan prepayment predictions and other
economic factors. To the extent that the carrying value of mortgage
servicing rights exceeds fair value by individual stratum, the resulting
impairment is recognized in earnings through a valuation allowance.
4
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS.
OVERVIEW
Net earnings for the first nine months of 1996 were $2,149 million, a $307
million (17%) increase over the first nine months of 1995.
Earnings of the lending, leasing and equipment management businesses are
significantly influenced by the level of invested assets, the related financing
spreads (the excess of rates earned - yields - over rates on borrowings) and the
quality of those assets. The Corporation's increase in net earnings principally
resulted from a higher average level of invested assets, partially offset by a
decrease in financing spreads as the decrease in borrowing rates was outpaced by
a decrease in yields.
The specialty insurance businesses, principally GE Global Insurance Holding
Corporation ("GIH"), also contributed to the increase in net earnings primarily
due to increased premium and investment income resulting from the 1995
acquisitions of the Frankona and Aachen Reinsurance Groups. These increases were
partially offset by increases in reserves for insurance losses and other
expenses, also primarily related to the acquisitions.
OPERATING RESULTS
EARNED INCOME from all sources increased $3,883 million (20%) to $23,151 million
for the first nine months of 1996, compared with $19,268 million in the first
nine months of 1995.
Earned income from the specialized financing, mid-market financing, consumer
services and equipment management businesses increased $2,786 million (20%) over
the comparable prior-year period. These increases principally reflect a higher
average level of invested assets, resulting from both origination volume and
acquisitions of portfolios and businesses, higher consumer insurance premiums
arising from acquisitions in 1995 and 1996 and increased personal computer
equipment sales associated with the acquisitions of Ameridata Technologies, Inc.
("Ameridata") and CompuNet Computer AG ("CompuNet") during the third quarter of
1996. Earned income from the specialty insurance businesses increased $1,087
million (20%) to $6,535 million for the first nine months of 1996 compared with
the first nine months of 1995. The increase primarily reflected increased
premium and investment income resulting from the acquisitions of Frankona and
Aachen and earnings growth in other insurance businesses from both origination
volume and acquisitions, partially offset by a slight decrease in GIH's domestic
net premiums earned.
INTEREST EXPENSE for the first nine months of 1996 was $5,280 million, 7% higher
than for the first nine months of 1995. The increase reflected the effects of
higher average borrowings used to finance asset growth, partially offset by the
effects of lower interest rates. The composite interest rate on borrowings for
the first nine months of 1996 was 6.26% compared with 6.79% in the first nine
months of 1995.
OPERATING AND ADMINISTRATIVE EXPENSES were $7,661 million for the first nine
months of 1996, a 38% increase over the first nine months of 1995. The increase
primarily reflected costs associated with businesses and portfolios acquired
over the past year and higher investment levels. Included in the increase are
costs of personal computer equipment sold associated with the acquisitions of
Ameridata and CompuNet during the third quarter of 1996.
INSURANCE LOSSES AND POLICYHOLDER AND ANNUITY BENEFITS increased 22% to $4,713
million for the first nine months of 1996, compared with $3,854 million for the
first nine months of 1995. The increase primarily resulted from the acquisitions
of Frankona, Aachen and other insurance businesses in 1995 and 1996.
PROVISION FOR LOSSES ON FINANCING RECEIVABLES decreased to $695 million for the
first nine months of 1996 from $710 million for the first nine months of 1995.
These provisions principally related to private-label and bank credit cards
which are discussed below under Portfolio Quality. The decrease reflected the
effects of sales of receivables and loan repayments, partially offset by
increases for private-label and bank credit cards.
5
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF
OPERATIONS (Continued).
DEPRECIATION AND AMORTIZATION OF BUILDINGS AND EQUIPMENT AND EQUIPMENT ON
OPERATING LEASES increased $145 million (10%) to $1,579 million for the first
nine months of 1996 compared with $1,434 million for the first nine months of
1995. The increase principally reflected higher levels of equipment on operating
leases as a result of portfolio growth and acquisitions.
PROVISION FOR INCOME TAXES was $954 million for the first nine months of 1996
(an effective tax rate of 31%), compared with $850 million for the first nine
months of 1995 (an effective tax rate of 32%). The higher provision for income
taxes reflected increased pre-tax earnings. The decrease in the 1996 effective
tax rate resulted primarily from increased tax credits and a decrease in foreign
taxes.
PORTFOLIO QUALITY
THE PORTFOLIO OF FINANCING RECEIVABLES, before allowance for losses, increased
to $97.2 billion at September 28, 1996 from $95.8 billion at the end of 1995.
Financing receivables are the Corporation's largest asset and the primary source
of revenues. Related allowances for losses at September 28, 1996, aggregated
$2.6 billion (2.63% of receivables - the same level as at the end of 1995) and
are, in management's judgment, appropriate given the risk profile of the
portfolio. A discussion about the quality of certain elements of the portfolio
of financing receivables follows. "Nonearning receivables" are those that are 90
days or more delinquent; "reduced earning receivables" are receivables whose
terms have been restructured to a below-market yield.
CONSUMER RECEIVABLES, primarily credit card and personal loans and auto loans
and leases, were $43.6 billion at September 28, 1996, an increase of $1.6
billion from the end of 1995. Nonearning and reduced earning receivables
increased to $812 million at September 28, 1996, from $671 million at December
31, 1995. Write-offs of consumer receivables increased to $622 million for the
first nine months of 1996, compared with $469 million for the first nine months
of 1995. This increase was primarily attributable to higher average receivable
balances resulting from a combination of origination volume and acquisitions of
businesses and portfolios and higher delinquencies consistent with overall
industry experience.
COMMERCIAL REAL ESTATE LOANS classified as financing receivables were $13.0
billion at September 28, 1996, a decrease of $0.4 billion from year-end 1995.
Nonearning and reduced earning receivables increased to $185 million at
September 28, 1996, from $179 million at December 31, 1995. Write-offs of
commercial real estate loans were $33 million for the first nine months of 1996,
compared with $102 million for the first nine months of 1995. At September 28,
1996, the commercial real estate portfolio also included, in other assets, $2.3
billion of assets acquired for resale from various financial institutions (the
same as at year-end 1995) and $2.0 billion of investments in real estate
ventures ($1.7 billion at year-end 1995).
OTHER FINANCING RECEIVABLES, totaling $40.6 billion at September 28, 1996 ($40.4
billion at December 31, 1995), consisted of a diverse commercial, industrial and
equipment loan and lease portfolio. Nonearning and reduced-earning receivables
were $286 million at September 28, 1996, compared with $285 million at year-end
1995.
Loans and leases to commercial airlines amounted to $8.5 billion at September
28, 1996, up from $8.3 billion at the end of 1995.
OTHER MATTERS
As 1996 progresses, management continues to believe that vigilant attention to
risk management and controllership and a strong focus on complete satisfaction
of customer needs position it to deal effectively with the increasing
competition in an ever-changing global economy.
6
<PAGE>
EXHIBIT 12
GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED
STOCK DIVIDENDS
NINE MONTHS ENDED SEPTEMBER 28, 1996
(Unaudited)
<TABLE>
<CAPTION>
RATIO OF
EARNINGS TO
COMBINED
FIXED
RATIO OF CHARGES AND
EARNINGS PREFERRED
TO FIXED STOCK
(Dollar amounts in millions) CHARGES DIVIDENDS
-------- -----------
<S> <C> <C>
Net earnings ........................................... $ 2,149 $ 2,149
Provision for income taxes ............................. 954 954
Minority interest in net earnings of consolidated
affiliates ............................................ 120 120
-------- --------
Earnings before provision for income taxes and
minority interest ..................................... 3,223 3,223
-------- --------
Fixed charges:
Interest ............................................ 5,329 5,329
One-third of rentals ................................ 129 129
-------- --------
Total fixed charges .................................... 5,458 5,458
-------- --------
Less capitalized interest, net of amortization ......... 26 26
-------- --------
Earnings before provision for income taxes and
minority interest plus fixed charges .................. $ 8,655 $ 8,655
======== ========
Ratio of earnings to fixed charges ..................... 1.59
========
Preferred stock dividend requirements .................. $ --
Ratio of earnings before provision for income taxes to
net earnings .......................................... 1.44
Preferred stock dividend on pre-tax basis .............. --
Fixed charges .......................................... 5,458
--------
Total fixed charges and preferred stock dividend
requirements .......................................... $ 5,458
========
Ratio of earnings to combined fixed charges and
preferred stock dividends ............................. 1.59
========
</TABLE>
For purposes of computing the ratios, fixed charges consist of interest on all
indebtedness and one-third of rentals, which management believes is a reasonable
approximation of the interest factor of such rentals.
7
<PAGE>
PART II--OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a. EXHIBITS.
Exhibit 12. Computation of ratio of earnings to fixed charges and
computation of ratio of earnings to combined fixed charges and
preferred stock dividends.
Exhibit 27. Financial Data Schedule (filed electronically only).
b. REPORTS ON FORM 8-K.
None.
8
<PAGE>
SIGNATURES
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.
GENERAL ELECTRIC CAPITAL SERVICES, INC.
(Registrant)
Date: November 11, 1996 By: /s/ J.A. Parke
------------------------------------------
J.A. Parke, Senior Vice President, Finance
(Principal Financial Officer)
Date: November 11, 1996 By: /s/ J.C. Amble
------------------------------------------
J.C. Amble, Vice President and Controller
(Principal Accounting Officer)
9
<PAGE>
GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES
INDEX TO EXHIBITS
EXHIBIT NO. PAGE NO.
12 Computation of ratio of earnings to fixed charges and
computation of ratio of earnings to combined fixed
charges and preferred stock dividends................. 7
27 Financial Data Schedule (filed electronically only)
10
EXHIBIT 12
GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED
STOCK DIVIDENDS
NINE MONTHS ENDED SEPTEMBER 28, 1996
(Unaudited)
<TABLE>
<CAPTION>
RATIO OF
EARNINGS TO
COMBINED
FIXED
RATIO OF CHARGES AND
EARNINGS PREFERRED
TO FIXED STOCK
(Dollar amounts in millions) CHARGES DIVIDENDS
-------- -----------
<S> <C> <C>
Net earnings ........................................... $ 2,149 $ 2,149
Provision for income taxes ............................. 954 954
Minority interest in net earnings of consolidated
affiliates ............................................ 120 120
-------- --------
Earnings before provision for income taxes and
minority interest ..................................... 3,223 3,223
-------- --------
Fixed charges:
Interest ............................................ 5,329 5,329
One-third of rentals ................................ 129 129
-------- --------
Total fixed charges .................................... 5,458 5,458
-------- --------
Less capitalized interest, net of amortization ......... 26 26
-------- --------
Earnings before provision for income taxes and
minority interest plus fixed charges .................. $ 8,655 $ 8,655
======== ========
Ratio of earnings to fixed charges ..................... 1.59
========
Preferred stock dividend requirements .................. $ --
Ratio of earnings before provision for income taxes to
net earnings .......................................... 1.44
Preferred stock dividend on pre-tax basis .............. --
Fixed charges .......................................... 5,458
--------
Total fixed charges and preferred stock dividend
requirements .......................................... $ 5,458
========
Ratio of earnings to combined fixed charges and
preferred stock dividends ............................. 1.59
========
</TABLE>
For purposes of computing the ratios, fixed charges consist of interest on all
indebtedness and one-third of rentals, which management believes is a reasonable
approximation of the interest factor of such rentals.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 28, 1996, AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS
</LEGEND>
<CIK> 0000797463
<NAME> GENERAL ELECTRIC CAPITAL SERVICES, INC.
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-28-1996
<CASH> 3,522
<SECURITIES> 48,273
<RECEIVABLES> 97,171
<ALLOWANCES> 2,556
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 24,328
<DEPRECIATION> 6,512
<TOTAL-ASSETS> 204,339
<CURRENT-LIABILITIES> 0
<BONDS> 47,187
0
10
<COMMON> 1
<OTHER-SE> 13,577
<TOTAL-LIABILITY-AND-EQUITY> 204,339
<SALES> 0
<TOTAL-REVENUES> 23,151
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 7,661
<LOSS-PROVISION> 695
<INTEREST-EXPENSE> 5,280
<INCOME-PRETAX> 3,103
<INCOME-TAX> 954
<INCOME-CONTINUING> 2,149
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,149
<EPS-PRIMARY> 0.00
<EPS-DILUTED> 0.00
</TABLE>
