-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, V8JMoxoB97zk6gz+GVSicjxPfCGX9EgQr9yWVPupXDONvMpiUULi1c6A/b/1DMOX RFtv+cWdgPhXfUKByYNvbg== 0000096638-96-000031.txt : 19961021 0000096638-96-000031.hdr.sgml : 19961021 ACCESSION NUMBER: 0000096638-96-000031 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19961018 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: ADVANTA CORP CENTRAL INDEX KEY: 0000096638 STANDARD INDUSTRIAL CLASSIFICATION: PERSONAL CREDIT INSTITUTIONS [6141] IRS NUMBER: 231462070 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-14120 FILM NUMBER: 96644943 BUSINESS ADDRESS: STREET 1: 650 NAAMANS RD STREET 2: BRANDYWINE CORP CTR CITY: CLAYMONT STATE: DE ZIP: 19703 BUSINESS PHONE: 2156574000 MAIL ADDRESS: STREET 1: BRANDYWINE CORPORATE CENTER STREET 2: 650 NAAMANS ROAD CITY: CLAYMONT STATE: DE ZIP: 19703 FORMER COMPANY: FORMER CONFORMED NAME: TSO FINANCIAL CORP DATE OF NAME CHANGE: 19880306 FORMER COMPANY: FORMER CONFORMED NAME: TEACHERS SERVICE ORGANIZATION INC DATE OF NAME CHANGE: 19850812 8-K 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 17, 1996 ________________________ADVANTA Corp.____________________________ (Exact name of registrant as specified in its charter) _______Delaware__________ _____0-14120________ ______23-1462070__ (State or other jurisdic- (Commission File (IRS Employer Identi- tion of incorporation) Number) fication No.) Welsh and McKean Roads, P.O. Box 844, Spring House, PA (Address of principal executive offices) 19477 (Zip Code) Registrant's telephone number, including area code: (215) 657-4000 Five Horsham Business Center, 300 Welsh Road, Horsham, PA 19044 (Former name or former address, if changed since last report) 5. Other Events. On October 17, 1996 Advanta Corporation announced earnings for the third quarter 1996 with net income of $44.4 million and earnings per share of $.98, increases of 27% and 21%, respectively, over the $34.9 million and $.81 per share results reported for the third quarter 1995. Earnings for the second quarter 1996 totalled $45.1 million or $1.00 per share. From September 30, 1995, the Company's portfolio of managed receivables increased by $5.5 billion or 53% to $15.8 billion at September 30, 1996. Highlights for the third quarter include the following items: Managed credit card receivables at September 30 of $12.7 billion posted a 53% increase over the $8.3 billion level last September. Total managed assets expanded to $18.4 billion at September 30, a 54% increase over the year ago amount. In the third quarter, the Company adopted a new charge-off methodology relating to credit card bankruptcies which provides for an investigative period following notification of the bankruptcy petition of up to 90-days (rather than up to 30-days) prior to charge-off. The longer investigative period, which is consistent with others in the industry, had an approximate $24 million net positive impact for the quarter. The charge-off rate on managed credit cards was 3.7% for the quarter, compared to 3.3% in the prior quarter and above the 2.7% of a year ago. The managed credit card 30+ day delinquency rate was 3.9%, above the 2.9% registered at June 30, and above the 2.3% of the year ago period. The third quarter 1996 figures reflect the adoption of the new bankruptcy charge-off methodology described above. The Company's credit card asset quality statistics continue to be better than industry averages. The Company originated approximately 157,000 new credit card accounts during the quarter compared to 263,000 accounts during the comparable quarter 1995 and 505,000 opened in the second quarter of 1996. Managed net interest margin increased to 6.19%, above the 5.84% recorded in the second quarter, and the 5.64% posted in the comparable period of 1995. During the third quarter, 37% of the managed credit card portfolio consisted of receivables in their introductory rate period; these accounts will contractually reprice upward over the course of the next three quarters. The operating expense ratio increased to 3.00% from 2.75% recorded in the prior quarter, and was above the year ago measure of 2.72%. Included in the operating expense ratio is spending on new technology, research and talent to support future growth and opportunities. During the third quarter, a company in the portfolio of Advanta's venture capital affiliate, Advanta Partners, completed its IPO. This company, RMH Teleservices, Inc., is a leading provider of outbound teleservices to major corporations in the insurance and financial services industries. Income from this transaction was offset by reserves and expense accruals. Item 7. Financial Statements and Exhibits. (c) Exhibits. The following exhibit is filed as part of this Report on Form 8-K. 27 Financial Data Schedules. 99 Selected summary financial data. 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. Advanta Corp. Date: October 17, 1996 By ________________________ Gene S. Schneyer, Vice President and Secretary ADVANTA AND SUBSIDIARIES FINANCIAL HIGHLIGHTS ($ in millions, except per share data) Three Months Ended % Change September 30, 1996 versus 1996 1995 1995 OPERATING RESULTS Net Revenues $232.8 $151.2 54% Provision for Losses $ 24.2 $ 10.6 129% Operating Expenses $141.3 $ 86.3 64% Net Income $ 44.4 $ 34.9 27% Earnings Per Common Share $ .98 $ .81 21% Average Shares 45.2 43.1 5% Return on Common Equity 25.0% 25.7% (3%) Managed Net Interest Margin 6.19% 5.64% 10% Nine Months Ended % Change September 30, 1996 versus 1996 1995 1995 OPERATING RESULTS Net Revenues (A) $610.1 $430.5 42% Provision for Losses $ 67.0 $ 28.1 138% Operating Expenses $379.2 $248.3 53% Net Income $130.5 $ 99.1 32% Earnings Per Common Share $ 2.89 $ 2.35 23% Average Shares 45.1 42.1 7% Return on Common Equity 26.0% 26.1% (1%) Managed Net Interest Margin 6.08% 5.85% 4% (A) Excludes $33.8 million gain on sale of credit card relationships in the second quarter of 1996. ADVANTA AND SUBSIDIARIES FINANCIAL HIGHLIGHTS ($ in millions, except per share data) % Change Sept. 1996 Sept. 30, June 30, Sept.30, versus 1996 1996 1995 Sept. 1995 FINANCIAL CONDITION Managed Receivables* Credit Cards $12,711 $12,679 $ 8,287 53% Mortgage Loans $ 2,334 $ 2,092 $ 1,673 40% Business Loans (A) $ 725 $ 610 $ 344 111% Other Loans $ 27 $ 12 $ 7 279% Total Managed Receivables $15,797 $15,393 $ 10,311 53% Total Managed Assets $18,357 $18,184 $ 11,938 54% Stockholders' Equity $ 798 $ 755 $ 635 26% Book Value Per Common Share $ 17.14 $ 16.13 $ 13.49 27% Equity/Managed Assets 4.35% 4.15% 5.32% (18%) Reserve for Credit Losses $ 77.6 $ 70.9 $ 40.3 93% Customer Accounts 5,854,627 5,829,247 4,512,216 30% CREDIT QUALITY Managed Net Charge-off Rate Credit Cards (B) 3.7% 3.3% 2.7% Mortgages 0.7% 0.7% 0.9% Business Loans (A) 1.9% 2.1% 1.7% Total Receivables (C) 3.2% 2.9% 2.3% Managed 30+ Day Delinquency Rate Credit Cards (B) 3.9% 2.9% 2.3% Mortgages 5.4% 5.3% 4.9% Business Loans (A) 6.7% 6.8% 8.1% Total Receivables (C) 4.2% 3.4% 3.0% (A) Includes Leases and Business Cards beginning in 1996. (B) Third quarter 1996 figures reflect the adoption of a new charge-off methodology. Without this change, managed credit card charge-off and delinquency rates for the third quarter 1996 would have been 4.6% and 3.7%, respectively. (C) Third quarter 1996 figures reflect the adoption of a new charge-off methodology. Without this charge, total managed charge- off and delinquency rates for the third quarter 1996 would have been 4.0% and 4.0%, respectively. * Managed figures combine both owned and securitized receivables. EX-27 2
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