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): July 20, 1994
________________________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.)
Brandywine Corporate Center, 650 Naamans Road, Claymont, Delaware
(Address of principal executive offices)
19703
(Zip Code)
Registrant's telephone number, including area code: (302) 791-4400
<PAGE>
Item 5. Other Events.
On July 20, 1994 Advanta Corp. announced record quarterly
earnings for the second quarter 1994 with net income of $25.8
million and earnings per share of $.63, increases of 39% and 37%,
respectively, over the $18.5 million and $.46 per share (before
extraordinary item) results for the second quarter 1993. Earnings
for the first quarter 1994 totalled $24.9 million or $.61 per
share. From June 1993, the Company's portfolio of managed
receivables increased by $1.8 billion or 44% to $5.9 billion at
June 30, 1994. Earnings per share for all periods reflect the
October 15, 1993 three-for-two stock split.
During the quarter, the Company sold $150 million of credit card
relationships. The gain on the transaction was fully offset by an
increase in marketing and developmental expenditures and an increase
in the general loan loss reserves.
Highlights for the second quarter include the following items:
Managed credit card receivables at June 30 of $4.5 billion
posted a 55% increase over the $2.9 billion level last June.
The managed credit card 30+ day delinquency rate fell to 2.0%,
from 2.9% in the second quarter last year.
The charge-off rate on managed credit cards dropped to 2.7%,
compared to 4.0% a year ago.
The Company added over 344,000 new credit card accounts during
the quarter compared to 249,000 in the second quarter of 1993.
The managed net interest margin for the quarter fell to 6.95%
from 7.38% in the first quarter, and 7.72% in the comparable
period of 1993 due to introductory pricing on credit cards and
a lag in the repricing from the multiple changes in the prime
rate during the quarter.
Item 7. Financial Statements and Exhibits
(c) Exhibits.
The following exhibits are filed as part of this Report on
Form 8-K:
27 Financial Data Schedules.
99 Selected summary financial data.
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<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.
Advanta Corp.
Date: July 20, 1994 By: /s/ Gene S. Schneyer
Gene S. Schneyer, Vice
President and Secretary
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
27 Financial Data Schedules.
99 Selected summary
financial data.
<PAGE>
ADVANTA AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Dollars in millions except per share data)
Three Months Ended % Change
June 30, 1994 versus
1994 1993 1993
OPERATING RESULTS
Net Revenues(1) $ 97.7 $ 77.0 27%
Provision for Losses $ 15.4 $ 6.4 143%
Operating Expenses $ 60.0 $ 41.7 44%
Net Income
Before Extraordinary Item $ 25.8 $ 18.5 39%
After Extraordinary Item $ 25.8 $ 17.2 50%
Earnings Per Common Share(2)
Before Extraordinary Item $ .63 $ .46 37%
After Extraordinary Item $ .63 $ .43 47%
Average Shares 41.2 40.3 2%
Return on Equity 27.23% 24.09% 13%
Managed Net Interest Margin 6.95% 7.72% (10%)
Six Months Ended % Change
June 30, 1994 versus
1994 1993 1993
OPERATING RESULTS
Net Revenues(1) $192.0 $149.9 28%
Provision for Losses $ 22.3 $ 13.5 64%
Operating Expenses $108.4 $ 81.7 33%
Net Income
Before Extraordinary Item $ 50.7 $ 34.6 46%
After Extraordinary Item $ 50.7 $ 33.3 52%
Earnings Per Common Share(2)
Before Extraordinary Item $ 1.23 $ 0.90 37%
After Extraordinary Item $ 1.23 $ 0.87 41%
Average Shares 41.0 38.2 7%
Return on Equity 27.49% 28.30% (3%)
Managed Net Interest Margin 7.15% 7.73% (7%)
(1) Excludes $18.4 million gain on sale of credit card relationships.
(2) 1993 per share amounts have been adjusted to reflect the three-
for-two stock split effective October 15, 1993.
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<PAGE>
ADVANTA AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Dollars in millions except per share data)
% Change
June 1994
June 30, March 31, June 30, versus
1994 1994 1993 June 1993
FINANCIAL CONDITION
Gross Receivables
- Owned $1,330 $1,405 $1,181 13%
- Managed $5,933 $5,411 $4,118 44%
Total Assets
- Owned $2,192 $2,325 $2,050 7%
- Managed $6,795 $6,331 $4,987 36%
Deposits $1,041 $1,144 $1,242 (16%)
Stockholders' Equity $ 389 $ 364 $ 298 31%
Book Value Per
Common Share(1) $ 9.88 $ 9.32 $ 7.75 27%
Equity/Owned Assets 17.76% 15.67% 14.54% 22%
CREDIT QUALITY
Reserves as a % of
Impaired Assets
Owned Credit Cards 186.0% 185.9% 191.7% (3%)
Owned Mortgages 31.1% 30.9% 34.1% (9%)
Owned Receivables 103.1% 119.7% 155.8% (34%)
Net Charge-off Rate
Managed Credit Cards 2.7% 2.7% 4.0% (32%)
Managed Mortgages(2) 1.8% 1.7% 1.0% 80%
Managed Receivables 2.5% 2.5% 3.2% (21%)
30+ Day Delinquency Rate
Managed Credit Cards 2.0% 2.3% 2.9% (31%)
Managed Mortgages 5.6% 5.9% 7.0% (19%)
Managed Receivables 2.9% 3.3% 4.2% (31%)
(1) 1993 per share amounts reflect the three-for-two stock split
effective October 15, 1993.
(2) Restated for June 1993 to exclude interest advances on
serviced mortgage portfolio to be consistent with presentation of
owned portfolio.
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