SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 16, 1997
________________________ADVANTA Corp.____________________________
(Exact name of registrant as specified in its charter)
_______Delaware________ _____0-14120________ ______23-1462070__
(State or other jurisdic- (Commission File (IRS Employer
tion of incorporation or Number) Identification No.)
Organization)
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
<PAGE>
5. Other Events.
On April 16, 1997 Advanta Corporation announced its first quarter
financial results, for the period ending March 31, 1997. For the
quarter, Advanta achieved net revenues of $182.5 million, comprised
of $156.9 million in noninterest revenues, and $25.6 million in net
interest income. In the first quarter of 1996, Advanta reported net
revenues of $187.7 million. As previously announced, the Company
reported a loss of $19.8 million, or $0.43 per share, compared to
net income of $41 million, or $0.91 per share for the first quarter
of last year. Earnings for the fourth quarter of 1996 totaled $45
million, or $1.00 per share.
From March 1996, the Company's portfolio of managed receivables
increased by $2.4 billion, or 17%, to $16.5 billion. Since year-
end 1996, managed receivables grew $162 million or 1%, on the
strength of the Company's mortgage and leasing businesses.
Highlights for the first quarter include the following items, which
are consistent with the first quarter projections released on March
17:
Average managed credit card receivables posted a 16.7%
increase from the $10.6 billion in the year ago quarter. At the
close of March, ending managed credit card receivables were $12.2
billion, down 4.0% from the prior quarter.
The consolidated managed charge-off and delinquency rates were
5.3% and 5.5%, respectively. Charge-offs increased from the 3.9%
reported in the last quarter, while the delinquency rate was
slightly above the 5.4% for that period.
The first quarter charge-off and delinquency rates for managed
credit cards were 6.6% and 5.2%, respectively, as compared to 4.6%
and 5.0% for those measures in the prior quarter.
The Company added over 530,000 new credit card accounts during
the quarter compared to approximately 675,000 added in the first
quarter of 1996. Total credit card accounts now stand at over 6.1
million.
Due to the quarterly loss, return on common equity was a
negative 11.4% for the first quarter, as compared to 25.8% for the
1996 first quarter.
Managed net interest margin for the quarter rose to 7.05% from
6.89% in the fourth quarter, and 6.24% in the comparable period of
1996. Gains from the repricing of introductory rate credit cards
were partially offset by growth in the lower margin personal
finance and business services units.
The operating expense ratio increased 16 basis points to 3.2%
in the first quarter, slightly above the 3.1% and 2.8% seen in the
fourth and first quarters of 1996.
Any statements released by Advanta that are forward looking are
made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Investors are cautioned
that forward looking statements involve risks and uncertainties
which may affect the Company's business and prospects. At present,
the most significant among these risks and uncertainties are: (1)
the Company's managed net interest margin, which in turn is
affected by the Company's success in originating new credit card
accounts, receivables volume and initial pricing of new accounts,
impact of repricing existing accounts and account attrition, mix of
account types and interest rate fluctuations; (2) the level of
delinquencies and charge-offs; and (3) the level of expenses.
Earnings may also be affected by factors affecting consumer debt,
competitive pressures and ratings on debt of the Company and its
subsidiaries. Additional risks that may affect future performance
are detailed in the Company's filings with the SEC.
<PAGE>
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.
<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: April 16, 1997 By: /s/ Gene S. Schneyer
Gene S. Schneyer, Vice
President and Secretary
<PAGE>
Exhibit 99
ADVANTA AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
($ in millions, except per share data)
Three Months Ended % Change
March 31, 1997 versus
1997 1996 1996
OPERATING RESULTS
Net Revenues $182.5 $187.7 (2.8%)
Provision for Losses $ 60.4 $ 15.1 300.2%
Operating Expenses $148.8 $110.5 34.7%
Net Income (Loss) $(19.8) $ 41.0 NM
Earnings (Loss) Per Common Share $(0.43) $ .91 NM
Average Shares (Millions) 46.2 44.9 2.8%
Return on Common Equity (11.4%) 25.8% NM
Managed Net Interest Margin 7.05% 6.24% 13.0%
<PAGE>
Exhibit 99
ADVANTA AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
($ in millions, except per share data)
% Change
March 1997
March 31, December 31, March 31, versus
1997 1996 1996 March 1996
FINANCIAL CONDITION
Gross Receivables
- Owned $ 2,535 $ 2,656 $ 3,012 (15.8%)
- Managed $16,451 $16,289 $14,091 16.7%
Total Assets
- Owned $ 6,244 $ 5,584 $ 4,985 25.3%
- Managed $20,160 $19,217 $16,064 25.5%
Stockholders' Equity $ 837 $ 852 $ 710 17.8%
Book Value Per
Common Share $ 17.38 $ 18.06 $ 15.17 14.6%
Equity/Owned Assets 15.0% 17.1% 14.3% 5.3%
Equity/Managed Assets 4.7% 5.0% 4.4% 5.2%
CREDIT QUALITY
Net Charge-off Rate
Managed Credit Cards 6.6% 4.6% 3.2% 106.3%
Managed Personal Finance 0.6% 0.7% 0.7% (14.3%)
Total Managed Receivables 5.3% 3.9% 2.8% 89.3%
30+ Day Delinquency Rate
Managed Credit Cards 5.2% 5.0% 2.7% 92.6%
Managed Personal Finance 6.3% 7.1% 5.5% 14.5%
Total Managed Receivables 5.5% 5.4% 3.2% 71.9%
<PAGE>
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