<PAGE>   1
                                    FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

(Mark One)

[X]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934

                  For the quarterly period ended MARCH 31, 1997

                                       OR

[ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934

                         Commission File Number 33-03790
                                                --------
  
                    CENTRAL FINANCIAL ACCEPTANCE CORPORATION
             (Exact name of registrant as specified in its charter)


           Delaware                                          95-4574983
-------------------------------                          ------------------
(State or other jurisdiction of                          (I.R.S. Employer
incorporation or organization)                           Identification No.)

                            5480 East Ferguson Drive
                           Commerce, California 90022
                    ----------------------------------------
                    (Address of principal executive offices)

                                 (213) 720-8600
              ----------------------------------------------------
              (Registrant's telephone number, including area code)

Indicate by check mark whether Registrant (1) has filed all reports 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
                          -----    -----

Number of shares outstanding as of May 14, 1997: 7,277,000.

<PAGE>   2

CENTRAL FINANCIAL ACCEPTANCE CORPORATION

                                    FORM 10-Q

                                      INDEX


<TABLE>
<CAPTION>
                                                                                                           Page No.
                                                                                                           --------

<S>                                                                                                             <C>
PART I.           FINANCIAL INFORMATION

Item 1.           Condensed Consolidated Financial Statements:

                  Condensed Consolidated Balance Sheets at  March 31, 1997 and December 31, 1996 ..............   1

                  Condensed Consolidated Statements of Operations for the Three Months Ended
                  March 31, 1997 and 1996......................................................................   2

                  Condensed Consolidated Statements of Cash Flows for the Three Months Ended
                  March  31, 1997 and 1996.....................................................................   3

                  Notes to Condensed Consolidated Financial Statements ........................................   4

Item 2.           Management's Discussion and Analysis of Financial Condition and Results of Operations........   8


PART II.          OTHER INFORMATION

Item 5.           Other Information............................................................................  12

Item 6.           Exhibits and Reports on Form 8-K.............................................................  12

Signatures.....................................................................................................  13
</TABLE>


<PAGE>   3

PART I.  FINANCIAL INFORMATION


ITEM 1.  CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

            CENTRAL FINANCIAL ACCEPTANCE CORPORATION AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEETS
                             (DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>
                                                         MARCH 31,    DECEMBER 31,
                                                           1997           1996
                                                       ------------   ------------
                        A S S E T S
<S>                                                    <C>            <C>         
Cash                                                   $      5,702   $      5,848
Consumer Finance receivables, net                           106,728        111,663
Automobile Finance receivables                                8,401          8,728
Other receivables                                             6,905          2,289
Prepaid expenses and other current assets                     1,978          1,673
Deferred income taxes                                         3,536          3,536
Property and equipment, net                                   4,377          3,425
Intangible asset, net                                         8,645          8,725
                                                       ------------   ------------
     Total assets                                      $    146,272   $    145,887
                                                       ============   ============

           LIABILITIES AND STOCKHOLDER'S EQUITY
Notes payable                                          $     72,541   $     74,024
Accrued expenses and other current liabilities                7,979          8,708
Income taxes payable                                          1,742            952
Long-term debt                                                  850            850
                                                       ------------   ------------
     Total liabilities                                       83,112         84,534
                                                       ------------   ------------
Commitments and contingencies
Stockholder's equity:
     Preferred stock, $.01 par value, 5,000,000
        shares authorized; no shares outstanding                 --             --
     Common stock, $.01 par value, 20,000,000 shares
        authorized; 7,277,000 shares
        issued and outstanding                                   73             73
     Paid-in capital                                         47,903         47,903
     Retained earnings                                       15,184         13,377
                                                       ------------   ------------
         Total stockholder's equity                          63,160         61,353
                                                       ------------   ------------
     Total liabilities and stockholder's equity        $    146,272   $    145,887
                                                       ============   ============
</TABLE>



            See notes to condensed consolidated financial statements.


                                        1

<PAGE>   4

            CENTRAL FINANCIAL ACCEPTANCE CORPORATION AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                  (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)


<TABLE>
<CAPTION>
                                                                     THREE MONTHS ENDED
                                                                          MARCH 31,
                                                                 ---------------------------
                                                                     1997          1996
                                                                 ------------   ------------
<S>                                                              <C>            <C>         
Revenues:
     Interest income on consumer finance receivables             $      7,583   $      5,479
     Interest income on auto finance receivables                          416            260
     Travel services                                                    1,755            221
     Other income                                                       2,903          1,272
                                                                 ------------   ------------
         Total revenues                                                12,657          7,232

Costs and expenses:
     Operating expenses                                                 5,811          2,019
     Provision for credit losses                                        2,411          2,154
     Interest expense                                                   1,423          1,241
                                                                 ------------   ------------
         Total costs and expenses                                       9,645          5,414
                                                                 ------------   ------------

Income before discontinued operations &
     provision for income taxes                                         3,012          1,818
Provision for income taxes                                              1,205            727
Income from discontinued operations, (net of tax)                          --             12
                                                                 ------------   ------------

Net income                                                       $      1,807   $      1,103
                                                                 ============   ============
PER SHARE DATA:

     Earnings per share from continuing operations               $       0.25   $       0.21
     Earnings per share discontinued operations                            --             --
                                                                 ------------   ------------
     Earnings per share                                          $       0.25   $       0.21

     Weighted average common shares outstanding                         7,277          5,150

     Supplementary net income per share                                    --   $       0.19

     Supplementary weighted average number of common                       --          7,277
     shares outstanding
</TABLE>


            See notes to condensed consolidated financial statements.



                                        2

<PAGE>   5

            CENTRAL FINANCIAL ACCEPTANCE CORPORATION AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                             (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                               THREE MONTHS ENDED
                                                                                    MARCH 31,
                                                                           ----------------------------
                                                                               1997            1996
                                                                           ------------    ------------
<S>                                                                        <C>             <C>         
Cash flows from operating activities:
     Net income                                                            $      1,807    $      1,103

     Adjustments to reconcile net income to net cash
         provided by operating activities:
         Depreciation and amortization                                              159              34
         Provision for credit losses                                              2,411           2,154
     Changes in assets and liabilities:
         Prepaid expenses and other current assets                                 (305)            (52)
         Other receivables                                                       (4,616)              0
         Net assets of discontinued operations                                        0             160
         Accrued expenses and other current liabilities                              61            (654)
                                                                           ------------    ------------
         Net cash provided by (used in) operating activities                       (483)          2,745
                                                                           ------------    ------------
Cash flows from investing activities:
     Installment contracts (originated and acquired) collected, net               2,851           2,078
     Capital expenditures                                                        (1,031)            (58)
                                                                           ------------    ------------
         Net cash provided by investing activities                                1,820           2,020
                                                                           ------------    ------------
Cash flows from financing activities:
     Capital withdrawal                                                               0          (1,203)
     Net (repayments of) notes payable                                           (1,483)         (3,488)
                                                                           ------------    ------------
     Net cash used in financing activities                                       (1,483)         (4,691)
                                                                           ------------    ------------

Net increase (decrease) in cash                                                    (146)             74
Cash, beginning of period                                                         5,848              57
                                                                           ------------    ------------
Cash, end of period                                                        $      5,702    $        131
                                                                           ============    ============

Cash paid during the period for:
     Interest                                                              $      1,312    $      1,246
     Income taxes                                                          $        415    $      1,178
</TABLE>


            See notes to condensed consolidated financial statements.



                                        3

<PAGE>   6

            CENTRAL FINANCIAL ACCEPTANCE CORPORATION AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


1.   BASIS OF PRESENTATION AND NATURE OF OPERATIONS

     The accompanying condensed consolidated financial statements of Central
Financial Acceptance Corporation ("CFAC") have been prepared in accordance with
generally accepted accounting principles for interim financial information and
with the instructions to Rule 10-01 of Regulation S-X. Accordingly, they do not
include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion of
management, all adjustments (consisting of only normal recurring adjustments)
considered necessary for a fair presentation of the Company's financial
condition and operating results for the interim periods presented have been
included. Operating results for the quarter are not necessarily indicative of
the results that may be expected for the year ended December 31, 1997. These
interim financial statements should be read in conjunction with the year ended
December 31, 1996 financial statements and notes contained therein, filed with
the Securities and Exchange Commission.

     CFAC was formed in April 1996 and consummated its initial public offering
on July 2, 1996, when it sold 2.127 million shares of common stock, which
resulted in net proceeds to the Company of approximately $22.5 million. CFAC
was a wholly owned subsidiary of Banner's Central Electric, Inc. Banner's
Central Electric, Inc. is wholly owned by Banner Holdings, Inc. ("Holdings") and
is a consumer products retailer that provides its customers with financing for
the merchandise it sells. On June 24, 1996, CFAC, Banner's Central Electric,
Inc. and Holdings entered into an agreement (the "Reorganization Agreement")
whereby Holdings contributed to Banner its investments in certain wholly owned
subsidiaries, along with the subsidiaries' operations, (the "Holdings
Subsidiaries") and Banner's Central Electric, Inc. contributed to CFAC its
investments in the Holdings Subsidiaries and the finance portion of its consumer
products business, and cash in such amount so as to leave CFAC with $500,000 of
cash on hand. Pursuant to the Reorganization Agreement, the intercompany
accounts between CFAC, Banner's Central Electric, Inc. and Holdings that arose
as a result of the Reorganization Agreement and from other transactions, except
with respect to income taxes, were forgiven and reclassified as stockholder's
equity.

     In addition to the Reorganization Agreement, CFAC, Banner's Central
Electric, Inc. and Holdings entered into certain agreements for the purpose of
defining the ongoing relationships among them. The transactions and agreements
entered into pursuant to the Reorganization Agreement are referred to herein as
the "Reorganization." Management of CFAC believes that such agreements provide
for reasonable allocations of costs between the parties.

     The reorganization was accounted for at historical cost in a manner similar
to a pooling of interests. The accompanying condensed consolidated financial
statements reflect the combined historical operations of CFAC and its
subsidiaries as if the Reorganization had taken place at the beginning of the
periods presented, except for the contribution of cash in such amount so as to
leave CFAC with $500,000 upon the Reorganization. CFAC and its subsidiaries, as
reorganized, are referred to herein as "Central" or the "Company." Banner's
Central Electric, Inc., including the operations of Banner's Central Electric,
Inc. that remain after contributing the finance portion of its consumer products
business to CFAC, is referred to herein as "Banner."

     On August 1, 1996, the business of Central Auto Sales, Inc. (a wholly owned
subsidiary of CFAC) was sold to CFAC's parent company for net book value. The
condensed consolidated financial statements have been restated to reflect this
business as a discontinued operation.

     The Company (i) purchases and services consumer finance receivables
generated by the Company's customers for purchases of high quality brand name
consumer products, appliances and furniture sold by Banner, and by independent
retailers; (ii) provides financing for purchases of used automobiles sold by
Banner, (iii) provides small loans to its customers; (iv) originates and
services consumer finance receivables generated by the Company's customers for
purchases of airline tickets sold by the Company; and (v) provides insurance
products and insurance premium financing to its customers. The majority of the
Company's business is focused in Southern California, and the Company
experiences the highest demand for its financial products and services between
October and December.



                                        4

<PAGE>   7

            CENTRAL FINANCIAL ACCEPTANCE CORPORATION AND SUBSIDIARIES

         NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED


2.   SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES

         See Note 2 of Notes to Consolidated Financial Statements in Central
Financial Acceptance Corporation's Annual Report on 10-K for the year ended
December 31, 1996.

3.   ACQUISITIONS

     During 1996, the Company acquired the business of, and assumed the
leasehold interests to 80 travel locations, and 10 automobile insurance agencies
for an aggregate purchase price of approximately $7.5 million. Such acquisitions
were accounted for as purchases and the results of their operation are not
material from a financial point of view, and have been included since the
applicable acquisition dates.

4.   EARNINGS PER COMMON SHARE

     Earnings per common share is computed by dividing net income by the average
number of common shares outstanding during the periods using the treasury stock
method. Stock options were not considered as dilutive in the earnings per share
calculation since they have less than 3% effect in the aggregate.

     Supplementary net income per share is based on the number of common shares
issued by the Company pursuant to the Reorganization and the number of shares
sold by the Company in its initial public offering, as if all such shares were
outstanding as of January 1, 1996, and also gives effect to a reduction of
interest expense, net of income tax expense, resulting from the reduction of
indebtedness upon application of the net proceeds of the proposed offering as if
it had occurred on January 1, 1996.

     The Financial Accounting Standards Board has issued Statement of Financial
Accounting Standards Number 128 (earnings per share) [SFAS 128] and Statement of
Financial Accounting Standards Number 129 (Disclosure of information about
Capital Structure) [SFAS 129]. The Company will be required to adopt SFAS 128
and SFAS 129 in fiscal year 1997. The Company does not expect that the adoption
of SFAS 128 and SFAS 129 will have a material effect on its financial position
or its results of operations in 1997.

5.   FINANCE AND OTHER RECEIVABLES

<TABLE>
<CAPTION>
                                                       CONSUMER                  AUTOMOBILE
                                                   FINANCE RECEIVABLES        FINANCE RECEIVABLES
                                               -------------------------   -------------------------
                                                 MARCH 31,   DECEMBER 31,   MARCH 31,    DECEMBER 31,
                                               -----------   -----------   -----------   -----------
                                                   1997         1996          1997           1996
                                               -----------   -----------   -----------   -----------
<S>                                            <C>           <C>           <C>           <C>        
Gross receivables                              $   127,972   $   134,477   $    10,421   $    11,002
Deferred interest                                   12,975        14,775         2,020         2,274
                                               -----------   -----------   -----------   -----------
Net receivable                                     114,997       119,702         8,401         8,728
Deferred administrative fee & insurance              1,149         1,253            --            --
Allowance for credit losses                          7,120         6,786            --            --
                                               -----------   -----------   -----------   -----------
                                               $   106,728   $   111,663   $     8,401   $     8,728
                                               ===========   ===========   ===========   ===========
</TABLE>

     Other receivables consist of commissions receivables from automobile
insurance companies of $260,000 and $101,000 at March 31, 1997 and December 31,
1996, respectively, receivables from insurance company for insurance products
sold of $964,000 and $2,188,000 at March 31, 1997 and December 31, 1996,
respectively, and $5,681,000 receivables from an affiliate at March 31, 1997,
which was repaid on April 15, 1997.



                                        5

<PAGE>   8

            CENTRAL FINANCIAL ACCEPTANCE CORPORATION AND SUBSIDIARIES

         NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED


6.   NOTES PAYABLE

     Notes payable consist of:

<TABLE>
<CAPTION>
                                                      MARCH  31,     DECEMBER 31,
                                                     ------------   ------------
                                                         1997           1996
                                                     ------------   ------------
<S>                                                  <C>            <C>         
Bank of America line of credit                       $     30,800   $     35,208
Wells Fargo line of credit                                 41,741         38,816
                                                     ------------   ------------
                                                     $     72,541   $     74,024
                                                     ============   ============
</TABLE>

     The Company has a credit agreement with Bank of America National Trust and
Savings Association (the "Bank of America Line of Credit") that, as amended,
provides for the issuance of notes up to $60,000,000, subject to an allowable
borrowing base. The amounts outstanding under these notes bear interest at rates
that are determined by the type of borrowing. Borrowings under the notes are
collateralized by certain receivables in the Company's consumer finance
receivable portfolio and Banner is a guarantor. The Bank of America Line of
Credit, as amended, matures on May 31, 1997 and contains certain restrictive
covenants that require, among other things, the maintenance of certain financial
ratios and amounts. The amount of unused credit under the facility was limited
by the allowable borrowing base and was approximately $1,066,000 at March 31,
1997 and $1,572,000 at December 31, 1996.

     The Company has a credit agreement with Wells Fargo Bank National
Association (the "Wells Fargo Line of Credit") that, as amended on October 10,
1996, provides for the issuance of notes up to $50,000,000 subject to an
allowable borrowing base. The amounts outstanding under these notes bear
interest at rates that are determined by the type of borrowing. Borrowings under
the notes are collateralized by certain receivables in the Company's consumer
finance receivable portfolio and by the Company's automobile finance receivable
portfolio. The Wells Fargo Line of Credit, as amended, expires on May 30, 1997.
The credit facility contains certain restrictive covenants that require, among
other things, the maintenance of certain financial ratios and amounts. The
amount of unused credit under the facility was limited by the allowable
borrowing base and was approximately $1,005,000 and $6,624,000 at March 31, 1997
and December 31, 1996, respectively.

     The Company is currently negotiating for a new single line of credit to
replace the current Bank of America Line of Credit and Wells Fargo Line of
Credit. The Company believes its new line of credit will be in place by May 31,
1997, or, if not, that it will be able to renew the current Bank of America Line
of Credit and Wells Fargo Line of Credit until such time as the new line of
credit is finalized.

7.   LONG-TERM DEBT

     Long-term debt consists of a promissory note payable to a bank that bears
interest at the bank's reference rate. Interest is payable monthly and the
principal is due July 1998. The note is secured by a deed of trust.


8.   RELATED PARTY TRANSACTIONS


     In connection with its formation, the Company., Banner and Holdings,
entered into the Reorganization Agreement and certain other agreements (the
"Financing Agreement", the "Option Agreement", and the Operating Agreement").




                                        6

<PAGE>   9

            CENTRAL FINANCIAL ACCEPTANCE CORPORATION AND SUBSIDIARIES

         NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED


     The Financing Agreement, as amended, grants the Company exclusive right to
provide financing to Banner customers for a term of fifteen years from the date
of the Reorganization and provides that any contracts purchased pursuant to this
Agreement will be at face value less a transaction fee, which is subject to
renegotiation at six month intervals. The Agreement also provides that for the
years ended December 31, 1996 and 1997, up to $1.5 million of contracts
purchased can be returned to Banner at amortized principal balance. The Company
can terminate the Financing Agreement at any time upon one year's prior written
notice to Banner.

     In the accompanying condensed consolidated financial statements the
transaction fee was computed based upon 1.6% of average net receivables in the
Consumer Product Portfolio prior to July 2, 1996, and 2.5% thereafter. During
the first three months ended March 31, 1997, Banner sold approximately $9
million of Consumer Product Receivables, net of $.6 million which the Company
returned pursuant to the Financing Agreement.

     In August 1996, following CFAC's initial public offering, CFAC, Central
Auto Sales, Inc., Central Consumer Finance Company and Banner entered into an
Agreement to Transfer Business Operations (the "Automobile Financing
Agreement"), under which CFAC sold its used car sales business to Banner for
approximately its net book value, or $865,000. Under the provisions of the
Automobile Financing Agreement, Banner will operate the used car sales business
while the Company will have the exclusive right for a fifteen year period to
provide financing for all cars that Banner sells or to purchase automobile
finance contracts generated by Banner. In addition, all financing extended by
the Company on automobiles sold by Banner will be with full recourse back to
Banner in the event of default by the customer. Accordingly, Banner will not
provide any dealers discount for cars sold pursuant to the Automobile Financing
Agreement.

     Pursuant to the Option Agreement, Holdings granted the Company an option,
exercisable for a two-year period commencing one year from the date of the
Reorganization, to acquire all of the outstanding capital stock of Banner (the
"Option") at an exercise price equal to the book value of Banner for the month
ended immediately preceding the exercise. If the Company exercises the Option,
the exercise price is payable in cash or in shares of the Company's common
stock.

     The Operating Agreement provides, among other things, that Banner, Holdings
or their affiliates are obligated to provide to the Company, and the Company is
obligated to utilize, certain services, including accounting, management
information systems and employee benefits. If such services involve an
allocation of expenses, such allocation shall be made on a reasonable basis. To
the extent that such services directly relate to the finance portion of the
consumer products business contributed by Banner to the Company, or to the
extent that other costs are incurred by Banner, Holdings or their affiliates
that directly relate to the Company, the Company is obligated to pay Banner's,
Holdings' or their affiliates' actual cost of providing such services or
incurring such costs. Employee benefit expenses are allocated to the Company
based on the ratio of actual payroll expenses of employees in the consumer
products business contributed by Banner to the Company compared to total actual
payroll expenses of Banner before such allocation. Accounting expenses are
allocated 50% to the Company. The operating costs of Banner's management
information systems function are allocated initially 50% to the Company for a
period of five years, subject to adjustment from time to time to reflect
changing costs and usage. Except for management information systems services,
the Operating Agreement continues until terminated by either the Company,
Holdings or Banner upon one year's prior written notice. Termination may be made
on a service-by-service basis or in total.




                                        7

<PAGE>   10

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS


     Certain statements in this Report on Form 10-Q constitute "forward-looking
statements" under the Private Securities Litigation Reform Act of 1995 which
involve risks and uncertainties. The Company'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,
credit quality, economic conditions, competition in the geographic and business
areas in which the Company conducts its operations, fluctuations in interest
rates and government regulation. For additional information concerning these
factors, see "Item 1. Business -- Business Considerations and Certain Factors
that May Affect Future Results of Operations and Stock Price" contained in the
Company's Annual Report on Form 10-K for the year ended December 31, 1996.

     The following sets forth certain information relating to the Company's
financial trends, credit quality and delinquency experienced for the Company's
consumer finance receivable portfolio, for the periods presented.

<TABLE>
<CAPTION>
                                                                           THREE MONTHS ENDED
                                                                                MARCH 31,
                                                                      ------------------------------
                                                                          1997               1996
                                                                      ------------      ------------
<S>                                                                   <C>               <C>         
FINANCIAL TRENDS (000's omitted)

Gross receivables (at end of period)                                  $    127,972      $    102,114
Deferred interest (at end of period)                                        12,975            10,972
                                                                      ------------      ------------
Net receivables (at end of period)                                         114,997            91,142

Deferred administrative fees & insurance (at end of period)                  1,149               905
Allowance for credit  losses (at end of period)                              7,120             5,648
                                                                      ------------      ------------

Net carrying value                                                    $    106,728      $     84,589
                                                                      ============      ============

Average net receivables                                               $    118,543      $     94,081

Average interest bearing liabilities(1)                                     72,307            61,856

Administrative fee income                                                      466               414

Total interest income(2)                                                     7,583             5,479
Total interest expense                                                       1,423             1,241
                                                                      ------------      ------------
Net interest income before provision for credit losses                       6,160             4,238

Net provision for credit losses                                              2,411             2,154

Net write-off's                                                             2,077             1,460

Average interest rate on average net receivables                              25.6%             23.3%
Average interest rate on interest bearing liabilities                          7.9%              8.0%
                                                                      ------------      ------------

Net interest spread                                                           17.7%             15.3%
                                                                      ============      ============
</TABLE>


(1)      The amounts represent borrowings and related interest expense on the
         Company's lines of credit, excluding amounts related to the Company's
         other borrowings.

(2)      The amounts represent interest income on consumer finance receivables,
         excluding administrative fees, late charges and other charges, which
         are included in the Condensed Consolidated Statements of Operations.




                                        8

<PAGE>   11

<TABLE>
<CAPTION>
                                                                            THREE MONTHS ENDED
                                                                                 MARCH 31,
                                                                       ------------------------------
                                                                           1997              1996
                                                                       ------------      ------------
<S>                                                                    <C>               <C>         
CREDIT QUALITY (000's omitted)

Average net receivables                                                $    118,543      $     94,081

Net provision for credit losses                                               2,411             2,154

Net write-off's                                                               2,077             1,460

Provision for credit losses as a % of average net receivables                   8.1%              9.2%

Net write-off's as a % of average net receivables                               7.0%              6.2%

END OF PERIOD (000's omitted)

Net receivables                                                        $    114,997      $     91,142
Allowance for credit losses                                                   7,120             5,648
Allowance for credit losses as a % of net receivables                           6.2%              6.2%


DELINQUENCY EXPERIENCE (000's omitted)

Past due accounts (gross receivables)
31-60 days                                                             $      3,297      $      2,178
61 days or more                                                               6,360             3,115

Accounts with payments 31 days or more past due
as a percentage of end of period gross receivables                              7.5%              5.2%
</TABLE>

AUTOMOBILE FINANCE PORTFOLIO

      At March 31, 1997 and March 31, 1996, the gross receivable of this
portfolio was $10.4 million and $7.7 million, respectively; the net receivable
was $8.4 million and $5.9 million, respectively.


                                        9

<PAGE>   12

THREE MONTHS ENDED MARCH 31, 1997 COMPARED WITH THE RESULTS OF OPERATIONS FOR
THE THREE MONTHS ENDED MARCH 31, 1996.

     Total revenues in the three months ended March 31, 1997 increased to $12.7
million from $7.2 million in the three months ended March 31, 1996, an increase
of $5.4 million or 75.0%.

     Interest income on the consumer finance receivables portfolio in the three
months ended March 31, 1997 increased to $7.6 million from $5.5 million in the
three months ended March 31, 1996, an increase of $2.1 million or 38.4%. This
increase was primarily attributable to an increase in the consumer finance
receivable portfolio which averaged $118.5 million in the three months ended
March 31, 1997, compared to $94.1 million in the three months ended March 31,
1996. The average interest rate the Company charged on this portfolio increased
to 25.6% for the three months ended March 31, 1997, compared to 23.3% for the
three months ended March 31, 1996.

      Interest income on the automobile finance receivables portfolio in the
three months ended March 31, 1997 increased to $0.4 million from $0.3 million in
the three months ended March 31, 1996. This increase was due to an increase in
the Automobile Finance Receivables which averaged $8.6 million in the three
months ended March 31, 1997, compared to $4.9 million in the three months ended
March 31, 1996.

      Other income for the three months ended March 31, 1997 increased to $2.9
million from $1.3 million in the three months ended March 31, 1996, an increase
of $1.6 million. Other income in the three months ended March 31, 1997 includes
an increase of $0.1 million in administrative fee income earned on small loans,
a $0.3 million increase in late and extension charges, a $0.1 million increase
in transaction fees charged on consumer product installment contracts, and an
increase of $.7 million in commissions and broker fees income from sales of
automobile insurance contracts and $.04 million in income from the sale of
credit life, accident and health and property insurance.

      Operating expenses in the three months ended March 31, 1997 increased to
$5.8 million from $2.0 million in the three months ended March 31, 1996, an
increase of $3.8 million. Of this increase, $1.7 million is attributable to
operating costs and expenses incurred in connection with the sale of airline
tickets and $0.8 million incurred in the sale of auto insurance, which business
commenced in July 1996. The remaining increase of $1.3 million was primarily due
to the expansion of the small loan business and unaffiliated retailer business,
including an increase in the number of employees and related payroll expenses.

     The provision for credit losses in the three months ended March 31, 1997
increased to $2.4 million from $2.2 million in the three months ended March 31,
1996, an increase of $.3 million or 11.9%. This increase was primarily due to
the growth experienced by the Company in its unaffiliated third party retailers
receivable portfolio, and to higher levels of delinquencies and write-off's.

     Interest expense in the three months ended March 31, 1997 increased to $1.4
million from $1.2 million in the three months ended March 31, 1996. This
increase was due to an increase in the amounts borrowed on the lines of credit
which averaged $72.3 million in the three months ended March 31, 1997, compared
to $61.9 million in the three months ended March 31, 1996.

     As a result of the foregoing factors, net income in the three months ended
March 31, 1997 increased to $1.8 million from $1.1 million in the three months
ended March 31, 1996, an increase of $.7 million or 63.8%.



                                       10

<PAGE>   13

LIQUIDITY AND CAPITAL RESOURCES

     The Company has historically financed its operations through the cash flow
generated from operations, borrowings under its Lines of Credit, and from
periodic contributions to capital made by Holdings and related entities.

     For the three months ended March 31, 1997, net cash utilized in operating
activities totalled $0.5 million, while investing activities provided $1.8
million of cash flow. During this period the Company paid down $1.5 million of
notes payable.

     Currently, the Company funds its lending activities and operations in part
with borrowings under the Bank of America Line of Credit and Wells Fargo Line of
Credit. Borrowings under the Bank of America Line of Credit may be used only to
finance the Company's consumer product finance business. Banner and CFAC are
each guarantors under the Bank of America Line of Credit. The amount of credit
available at any one time under the Bank of America Line of Credit is limited to
75% of certain eligible contracts in the Company's consumer finance receivable
portfolio. As of March 31, 1997, the total amount available to the Company under
the Bank of America Line of Credit was $31.9 million, of which $30.8 million was
outstanding. The Bank of America Line of Credit was amended as of April 30,
1997, to extend the expiration date to May 31, 1997. Borrowings under the Wells
Fargo Line of Credit may be used only to finance the Company's travel finance,
auto finance and small loan businesses. The amount of credit available at any
one time under the Wells Fargo Line of Credit is limited to 75% of eligible
contracts. As of March 31, 1997, the total amount available to the Company under
the Wells Fargo Line of Credit, as amended as of April 30,1997 to extend the
expiration date to May 30, 1997, was $42.7 million, of which approximately $41.7
million was outstanding. The Company is currently negotiating for a new single
line of credit to replace the current Bank of America Line of Credit and Wells
Fargo Line of Credit. The Company believes its new line of credit will be in
place by May 31, 1997, or, if not, that it will be able to renew the current
Bank of America Line of Credit and Wells Fargo Line of Credit until such time as
the new line of credit is finalized.

     The Company requires substantial capital to finance its business.
Consequently, the Company's ability to grow and the future of its operations
will be affected by the availability of financing and the terms thereof. The
amount of debt the Company requires from time to time depends on the Company's
needs for cash, as determined by its operating performance and its ability to
borrow under the terms of its various loan agreements. The Company intends to
meet its short-term liquidity needs with cash flow from operations and
borrowings under its lines of credit. However, there can be no assurance that
the Company will have access to financing sources necessary to sustain its
operation and its growth plans, or that such financing will be available to the
Company on favorable terms.



                                       11

<PAGE>   14

PART II.  OTHER INFORMATION

ITEM 5.   OTHER INFORMATION

         None.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         10.32    Amendment Number Three to Third Amended and Restated Loan
                  Agreement dated as of April 30, 1997 among the financial
                  institutions named therein, Central Installment Credit
                  Corporation and Banner's Central Electric, Inc.

         10.33    Extension of Maturity Date to credit agreement dated as of
                  April 28, 1997, by and between Central Consumer Finance
                  Company and Wells Fargo Bank NTSA.

         27.1     Financial Data Schedule

         (b)      Reports

                  No reports on Form 8-K were required to be filed by the
                  Company during the three month period ended March 31, 1997.




                                       12

<PAGE>   15

                                   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.


                                     CENTRAL FINANCIAL ACCEPTANCE CORPORATION



May 14, 1997                         /S/ GARY M. CYPRES
                                     -------------------------------------------
                                     Gary M. Cypres
                                     Chairman of the Board, Chief Executive
                                     Officer and President




May 14, 1997                         /S/ NEAL E. GOWER
                                     -------------------------------------------
                                     Neal E. Gower
                                     Principal Accounting Officer



                                       13

<PAGE>   16

INDEX TO EXHIBITS

<TABLE>
<CAPTION>
Exhibit
Number        Description
------        -----------
<S>           <C>
10.32         Amendment Number Three to Third Amended and Restated Loan
              Agreement dated as of April 30, 1997 among the financial
              institutions named therein, Central Installment Credit Corporation
              and Banner's Central Electric, Inc.

10.33         Extension of Maturity Date to credit agreement dated as of April
              28, 1997, by and between Central Consumer Finance Company and
              Wells Fargo Bank NTSA.

27.1          Financial Data Schedule
</TABLE>