SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
the Securities Exchange Act of 1934
Date of Report: June 24, 1997
PROVIDIAN FINANCIAL CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 1-12897 94-2933952
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(State of incorporation) (Commission File No.) (IRS Employer
Identification No.)
201 Mission Street
San Francisco, California 94105
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(Address of Principal Executive Offices)
Registrant's telephone number, including area code: (415) 543-0404
Providian Bancorp, Inc.
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(Former name or former address, if changed since last report)
Item 5. Other Events.
On June 10, 1997, the shares of the Common Stock of the registrant were
distributed by its corporate parent, Providian Corporation, to the shareholders
of Providian Corporation in a spin-off transaction (the "Distribution"). On
February 4, 1997, a subsidiary trust of the registrant issued $160 million of
capital securities. The attached exhibit provides certain additional pro forma
financial information regarding the registrant, giving effect to the
Distribution and the issuance of the capital securities.
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits.
(c) Exhibits. Exhibit 99.1
Pro Forma Condensed Statement of Income of Providian Financial
Corporation and Subsidiaries
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 hereunto duly authorized.
PROVIDIAN FINANCIAL CORPORATION
By: /s/ David Petrini
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Name: David Petrini
Title: Senior Vice President
and Chief Financial Officer
Date: June 24, 1997
Index to Exhibits
Exhibit Number and Designation
99.1 Pro Forma Condensed Statement of Income of Providian Financial
Corporation and Subsidiaries
PRO FORMA CONDENSED STATEMENT OF INCOME
PROVIDIAN FINANCIAL CORPORATION AND SUBSIDIARIES
The following tables present the unaudited pro forma condensed
statement of income for each of the four quarters ended March 31, June 30,
September 30 and December 31, 1996 and for the year ended December 31, 1996 for
Providian Financial Corporation, giving effect to the Distribution and to the
issuance of $160 million in liquidation amount of mandatorily redeemable
preferred securities (the "Capital Securities") by Providian Capital I, a
subsidiary trust of Providian Financial Corporation that was formed in January
1997 for the sole purpose of issuing the Capital Securities (and certain Common
Securities of Providian Capital I owned by Providian Financial Corporation) and
investing the proceeds in 9.525% Junior Subordinated Deferrable interest
Debentures issued by Providian Financial Corporation. The pro forma condensed
statement of income was prepared assuming that the Distribution and the sale of
the Capital Securities had occurred on January 1, 1996, as noted in the
Footnotes to the Pro Forma Condensed Statement of Income.
The unaudited pro forma condensed statement of income presented below
does not purport to represent what the results of operations would actually have
been if the pro forma adjustments had occurred on the dates referred to be above
or to be indicative of the future results of operations of Providian Financial
Corporation. The pro forma adjustments are based upon available information and
certain assumptions that the registrant believes are reasonable. The pro forma
condensed statement of income should be read in conjunction with the historical
financial statements of the registrant and the related notes thereto contained
in the registrant's registration statement on Form 10 filed under the Securities
Exchange Act of 1934, as amended.
<PAGE>
<TABLE>
PROVIDIAN FINANCIAL CORPORATION
PRO FORMA CONDENSED STATEMENT OF INCOME
Quarterly/Annual Summary
(Dollars in thousands)
Quarter Ended March 31, 1996 Quarter Ended June 30, 1996
As Pro Forma Pro Forma As Pro Forma Pro Forma
Reported Adjustments Results Reported Adjustments Results
-------- ----------- --------- -------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
Interest Income:
Consumer Loans ....................... $133,111 $133,111 $138,423 $138,423
Other ................................ 5,238 5,238 5,699 5,699
------- ------- ------- -------
Total Interest Income ............. 138,349 138,349 144,122 144,122
Interest Expense:
Deposits ............................. 31,362 31,362 35,415 35,415
Borrowings ........................... 13,890 $(753) (1) 13,137 14,221 $(756) (1) 13,465
------ ---- ------ ------ ---- ------
Total Interest Expense ............ 45,252 (753) 44,499 49,636 (756) 48,880
------ ---- ------ ------ ---- ------
Net interest income ..................... 93,097 93,850 94,486 95,242
Provision for loan losses ............... 28,351 28,351 23,831 23,831
Non-Interest Income ..................... 90,570 90,570 89,975 89,975
(960) (2) (960) (2)
593 (3) 593 (3)
4,000 (4) 4,000 (4)
----- -----
Non-Interest Expense .................... 98,488 3,633 102,121 97,936 3,633 101,569
------ ------- ------- ------ ----- -------
Income before income taxes .............. 56,828 (2,880) 53,948 62,694 (2,877) 59,817
------ ------- ------ ------ ------- ------
286 (1) 287 (1)
365 (2) 365 (2)
(225) (3) (225) (3)
(1,520) (4) (1,520) (4)
------- -------
Income tax expense....................... 21,420 (1,094) 20,326 23,810 (1,093) 22,717
------- ------- ------ ------ ------- ------
Net Income .............................. $35,408 $(1,786) $33,622 $38,884 $(1,784) $37,100
====== ======= ====== ====== ======= ======
Weighted Average Number of Common Shares Outstanding ......... 93,890 93,490
Net income per common and common equivalent share............. $0.36 $0.40
<PAGE>
(Dollars in thousands)
Quarter Ended September 30, 1996 Quarter Ended December 31, 1996
As Pro Forma Pro Forma As Pro Forma Pro Forma
Reported Adjustments Results Reported Adjustments Results
-------- ----------- --------- -------- ---------- --------
<S> <C> <C> <C> <C> <C> <C>
Interest Income:
Consumer Loans ....................... $145,852 $145,852 $156,949 $156,949
Other ................................ 5,455 5,455 5,266 5,266
------- ------- ------- ------
Total Interest Income ............. 151,307 151,307 162,215 162,215
Interest Expense:
Deposits ............................. 31,882 31,882 43,032 43,032
Borrowings ........................... 14,211 $(674) (1) 13,537 6,354 $(656) (1) 5,698
------ ----- ------ ------ ----- ------
Total Interest Expense ............ 46,093 (674) 45,419 49,386 (656) 48,730
------ ----- ------ ------ ----- ------
Net Interest Income ..................... 105,214 105,888 112,829 113,485
Provision for loan losses ............... 37,510 37,510 36,887 36,887
Non-Interest Income ..................... 108,152 108,152 123,311 123,311
(959) (2) (959) (2)
593 (3) 593 (3)
4,000 (4) 4,000 (4)
----- -----
Non-Interest Expense .................... 111,586 3,634 115,220 125,794 3,634 129,428
------- ----- ------- ------- ----- -------
Income before income taxes .............. 64,270 (2,960) 61,310 73,459 (2,978) 70,481
------ ------- ------ ------ ------- ------
256 (1) 250 (1)
364 (2) 364 (2)
(225) (3) (225) (3)
(1,520) (4) (1,519) (4)
------- -------
Income tax expense....................... 24,353 (1,125) 23,228 27,902 (1,130) 26,772
------- ------- ------ ------ ------- ------
Net Income .............................. $39,917 $(1,835) $38,082 $45,557 $(1,848) $43,709
====== ======= ====== ====== ======= ======
Weighted Average Number of Common Shares Outstanding ......... 93,571 93,705
Net income per common and common equivalent share............. $0.41 $0.46
<PAGE>
(Dollars in thousands)
Year Ended December 31, 1996
As Pro Forma Pro Forma
Reported Adjustments Results
-------- ----------- ---------
<S> <C> <C> <C>
Interest Income:
Consumer Loans ....................... $574,335 $574,335
Other ................................ 21,658 21,658
------- -------
Total Interest Income ............. 595,993 595,993
Interest Expense:
Deposits ............................. 141,691 141,691
Borrowings ........................... 48,676 (2,839) (1) 45,837
------- ------- -------
Total Interest Expense ............ 190,367 (2,839) 187,528
------ ------- -------
Net interest income ..................... 405,626 408,465
Provision for loan losses ............... 126,579 126,579
Non-Interest Income ..................... 412,008 412,008
(3,838) (2)
2,372 (3)
16,000 (4)
------
Non-Interest Expense .................... 433,804 14,534 448,338
------- ------ -------
Income before income taxes .............. 257,251 (11,695) 245,556
------- -------- -------
1,079 (1)
1,458 (2)
(901) (3)
(6,079) (4)
-------
Income tax expense....................... 97,485 (4,443) 93,042
------ ------- ------
Net Income .............................. $159,766 $(7,252) $152,514
======= ======= =======
Weighted Average Number of Common Shares Outstanding ......... 93,664
Net income per common and common equivalent share............. $1.63
</TABLE>
FOOTNOTES TO ADDITIONAL PRO FORMA CONDENSED STATEMENT OF INCOME
(1) Reflects the repayment of borrowings by Providian Financial Corporation
from affiliates that will no longer be affiliates after the Distribution.
The adjustment assumes that such repayment was funded from the proceeds of
Capital Securities issued on a pro forma basis as of January 1, 1996.
(2) Reflects the reimbursement by Providian Corporation of certain previously
recognized employee costs incurred by Providian Financial Corporation on
behalf of Providian Corporation as required under the terms of the Employee
Benefits Agreement in connection with the Distribution.
(3) Reflects additional administrative expenses (executive salaries,
professional services, business taxes and other expenses) which are
estimated to be incurred by Providian Financial Corporation as a publicly
held, stand-alone entity.
(4) Reflects, as of January 1, 1996, the issuance of $160 million in
liquidation amount of Capital Securities of Providian Capital I, a
subsidiary trust of Providian Financial Corporation, that was formed in
January 1997 for the sole purpose of issuing the Capital Securities.
