<PAGE> 1
================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------
FORM 11-K
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 [NO FEE REQUIRED], FOR THE FISCAL YEAR ENDED DECEMBER 31, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 [NO FEE REQUIRED] for the transition period
from ______________to _______________
COMMISSION FILE NUMBER 0-14120
A. Full title of the plan and the address of the plan, if different from that
of the issuer named below:
ADVANTA CORP. EMPLOYEE SAVINGS PLAN
B. Name of issuer of the securities held pursuant to the plan and the address
of its principal executive office:
ADVANTA CORP.
WELSH AND MCKEAN ROADS
P.O. BOX 844
SPRING HOUSE, PA 19477-0844
================================================================================
<PAGE> 2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Committee which administers the Plan has duly caused this annual report to
be signed by the undersigned thereunto duly authorized.
Advanta Corp.
Employee Savings Plan
Dated: June 30, 1999 By: /s/ Philip M. Browne
-------------------------------------
Philip M. Browne
Member of the Committee Administering
the Plan
2
<PAGE> 3
ADVANTA CORP.
EMPLOYEE SAVINGS PLAN
INDEX TO FINANCIAL STATEMENTS AND SCHEDULES
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
FINANCIAL STATEMENTS:
Statements of Assets Available for Benefits
as of December 31, 1998 and 1997
Statements of Changes in Assets Available for Benefits for the Years Ended
December 31, 1998, 1997 and 1996
Notes to Financial Statements
SCHEDULES:
I - Schedule of Assets Held for Investment Purposes as of December 31,
1998.
II - Schedule of Reportable Transactions for the Year Ended December 31,
1998.
3
<PAGE> 4
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Advanta Corp. Employee Savings Plan
Compensation Committee:
We have audited the accompanying statements of assets available for benefits of
Advanta Corp. Employee Savings Plan as of December 31, 1998 and 1997, and the
related statements of changes in assets available for benefits for each of the
three years in the period ended December 31, 1998. These financial statements
and the schedules referred to below are the responsibility of the Plan's
management. Our responsibility is to express an opinion on these financial
statements and schedules based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the assets available for benefits of Advanta Corp.
Employee Savings Plan as of December 31, 1998 and 1997, and the changes in its
assets available for benefits for each of the three years in the period ended
December 31, 1998, in conformity with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of Assets Held
for Investment Purposes and Reportable Transactions are presented for purposes
of additional analysis and are not a required part of the basic financial
statements but are supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. The supplemental schedules have been
subjected to the auditing procedures applied in the audits of the basic
financial statements and, in our opinion, are fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
Philadelphia, PA Arthur Andersen LLP
June 23, 1999
4
<PAGE> 5
ADVANTA CORP.
EMPLOYEE SAVINGS PLAN
STATEMENTS OF ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
DECEMBER 31,
--------------------------------
1998 1997
----------- -----------
<S> <C> <C>
ASSETS
- ------
Cash $ 8,117 $ 8,192
Investments (Note 9):
Managed Investment Funds
T.Rowe Price Stable Value 5,365,337 6,334,571
Western Asset Management Core 677,041 462,288
Dodge and Cox Balanced 3,693,383 3,655,425
Vanguard Index Trust 500 10,211,235 6,580,109
Dodge and Cox Stock 4,180,879 4,165,892
Vanguard International Growth 2,169,424 2,339,159
Hancock Special Equities 1,937,267 2,468,575
Putnam New Opportunities 3,977,650 3,374,212
Common Stock Fund (Advanta Corp.
Common Stock, Class A and B) 2,240,713 12,387,483
Employer Contribution Receivable 1,268,880 1,810,744
Participant Loans Receivable
(Note 3) 1,122,983 2,020,290
----------- -----------
Total Assets Available for
Benefits $36,852,909 $45,606,940
=========== ===========
</TABLE>
The accompanying notes are an integral part of these statements.
5
<PAGE> 6
ADVANTA CORP.
EMPLOYEE SAVINGS PLAN
STATEMENTS OF CHANGES IN ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31,
-------------------------------------------------
1998 1997 1996
----------- ----------- -----------
<S> <C> <C> <C>
INCREASES:
Interest and Dividend Income $ 1,796,013 $ 1,387,291 $ 347,389
Tender Offer (Note 2) 2,927,418 0 0
Employee Contributions 5,343,308 6,509,310 4,882,761
Employer Contributions 2,591,743 3,496,542 2,545,390
Realized Gains on Investments 1,417,532 4,595,929 333,596
Net (Decrease) Increase in Fair
Market Value of Investments (929,826) (9,561,030) 4,116,079
----------- ----------- -----------
13,146,188 6,428,042 12,225,215
DECREASES:
Fleet Transaction (Note 2) 15,817,367 0 0
Distributions to Participants 6,082,852 5,274,753 1,512,188
Investor Advisory and Trustee Fee 0 208,586 229,190
----------- ----------- -----------
21,900,219 5,483,339 1,741,378
Net (Decreases)/Increases (8,754,031) 944,703 10,483,837
Assets Available for Benefits
beginning of year 45,606,940 44,662,237 34,178,400
----------- ----------- -----------
Assets Available for Benefits,
end of year $36,852,909 $45,606,940 $44,662,237
=========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these statements.
6
<PAGE> 7
ADVANTA CORP.
EMPLOYEE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
(1) DESCRIPTION OF PLAN:
-------------------
The Advanta Corp. Employee Savings Plan (the "Plan"), as amended, was adopted
effective July 1, 1983 and is a defined contribution plan available to all
employees of Advanta Corp. (the "Company") and certain of its subsidiaries and
affiliates who have reached age 21 with one year of service. The Plan is subject
to the provisions of the Employee Retirement Income Security Act of 1974, as
amended (ERISA).
Participants may elect to defer a portion of their compensation before certain
taxes are deducted. The Company may elect to limit the maximum percentage a
participant may contribute to the extent it determines that such limitation is
necessary in order to comply with the rules for plan qualification under
Sections 401(a) and (k) of the Internal Revenue Code. An eligible participant
may elect to contribute up to 15% of his salary subject to the limits under
Section 401 of the Internal Revenue Code. The Company also makes matching
contributions to the Plan, a portion of which is made on a per pay period basis,
and the balance of which is made as of the end of the Plan year. Such employer
contributions are equal to 50% of each employee's contributions up to 5% of the
employee's compensation contributed to the Plan (as defined in the Plan). The
Company may make an additional matching contribution for the benefit of
participants who are employed as of the last day of the Plan year. Total
employer contributions in each of the Plan years 1998, 1997, and 1996 were 100%
of the first 5% of employees' compensation contributed to the Plan.
The Plan is subject to certain non-discrimination standards under Section 401(k)
of the Internal Revenue Code. In order to comply with these standards, certain
participants who are "highly compensated employees" (as defined in the Internal
Revenue Code) may have a portion of their contributions refunded to them after
the end of the Plan Year.
Because contributions made under Section 401 can not be included in the income
of participants when made, they are fully taxable when distributed unless rolled
over into another qualified plan or Individual Retirement Account (IRA).
Participants are fully vested as to employer and employee contribution accounts
at all times.
The Plan participants may invest their contributions in the following managed
investment funds and in shares of the Company's Class B common stock.
o T. Rowe Price Stable Value Fund: This fund invests primarily in insurance
contracts with a portion of the funds' assets in synthetic investment
contracts. The contract value of the investment contracts approximates
market value.
o Western Asset Management Core Fund: This fund seeks to provide moderate
7
<PAGE> 8
long-term return with moderate short-term volatility by investing in high-
quality bonds backed by the U.S. government or its agencies, or by
corporations with high credit ratings.
o Dodge and Cox Balanced Fund: This fund offers the benefit of asset
allocation and invests primarily in common stocks, convertible securities,
and corporate and government bonds.
o Vanguard Index Trust 500 Fund: This fund seeks to duplicate the return of
the Standard and Poor's 500 composite Stock Price Index by investing in the
stocks that make up the Standard & Poor's 500.
o Dodge and Cox Stock Fund: This fund invests primarily in stocks of large
companies representing different market sectors. In addition to stocks,
this fund may also invest in convertible securities and cash equivalents.
o Vanguard International Growth Fund: This fund invests primarily in common
stocks and securities convertible to common stocks of large companies with
international franchises located outside the United States with above
average growth potential.
o Hancock Special Equities Fund: This fund seeks to invest primarily in U.S.
common stocks in a diversified group of emerging growth companies focusing
on companies with above-average long-term capital growth potential.
o Putnam New Opportunities Fund: This fund seeks larger high-growth companies
investing primarily in U.S. common stocks but also may purchase foreign
securities, convertible securities, and warrants.
The Plan invests funds related to pending trades in a short-term money market
fund.
While it is the Company's intention to continue the Plan in operation
indefinitely, any termination of the Plan or discontinuance of contributions
will not result in the use or diversion of Plan assets for any purposes other
than the exclusive benefit of Plan participants and their beneficiaries.
(2) FLEET TRANSACTION:
-----------------
In accordance with the terms of a Contribution Agreement (the "Agreement") dated
as of October 28, 1997, as amended February 20, 1998, by and between the Company
and Fleet Financial Group, Inc. ("Fleet"), on February 20, 1998 the Company and
certain of its subsidiaries and Fleet and certain of its subsidiaries each
contributed certain assets and liabilities of their respective consumer credit
card businesses in exchange for an ownership interest in a newly formed Rhode
Island limited liability company, Fleet Credit Card LLC (the "Fleet
Transaction"). Subsequent to February 20,1998, Fleet Credit Card Services LP
became the successor in interest to the LLC. References to the LLC include its
successor in interest Fleet Credit Card Services LP.
Concurrently with the Fleet Transaction, the Company purchased 7,882,750 shares
of its Class A Common Stock and 12,482,850 of its Class B Common Stock at $40
per share net. Participants who held investments in Advanta Corp.'s Class A
Common Stock or Class B Common Stock in the Plan were eligible to tender their
respective shares at $40 per share, net. Participants reinvested the proceeds,
from shares purchased by the Company, into investment options that were
available under the Plan at that time.
8
<PAGE> 9
In connection with the Fleet Transaction, 1,405 participants were transferred to
Fleet Credit Card LLC. As a result, approximately $15.8 million of Plan assets
were transferred to Fleet's defined contribution plan on June 30, 1998.
(3) PARTICIPANT LOANS:
-----------------
As provided for in the Plan document, loans are available to participants under
certain specified conditions. The principal amount of a Plan loan to a
participant may not exceed the lesser of $50,000 (reduced by the maximum amount
of any Plan loans outstanding anytime during the preceding year) or 50% of a
participant's accrued equity in the Plan. Plan loans are generally limited to a
term of five years (or, in the case of a loan used to finance the acquisition of
a principal residence, fifteen years) and bear an interest rate charged by
commercial lenders for a comparable loan on the date the loan request is
approved. Plan loans are collateralized by the participant's accrued benefit in
the Plan.
(4) BASIS OF ACCOUNTING:
-------------------
The accompanying financial statements have been prepared using the accrual basis
of accounting.
(5) USE OF ESTIMATES:
----------------
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets available for benefits and changes
therein. Actual results could differ from those estimates.
(6) PARTICIPANT ACCOUNTS:
--------------------
Effective July 1, 1997, the Plan was amended. Pursuant to the amendments to the
Plan, the investment options that existed at December 31, 1996 were replaced
with new investment options. Plan participants may invest their contributions
and employer contributions in one or more of the following investment options:
any of eight investment portfolios managed by investment advisory firms (See
Note 1) and the Common Stock Fund. In addition, in July 1997, Wilmington Trust
Company replaced PW Trust Company as Trustee of the Plan.
Separate accounts are maintained for each participant in each investment fund.
Investment gains and losses in each of the funds described above were allocated
to the participants in the ratio of each participant's account balance
(including employee contributions and employer matching contributions) to the
total account balance in each fund.
(7) ADMINISTRATIVE EXPENSES:
-----------------------
Prior to July 1, 1997, all expenses of administration of the Plan and other fees
incident to the management of the Plan were paid for by the Company, except for
9
<PAGE> 10
brokerage commissions, investment advisory fees, trustee fees and transfer
taxes, if any. Effective July 1, 1997, the Company also pays for trustee fees.
(8) UNREALIZED GAINS AND LOSSES:
---------------------------
Unrealized investment gains and losses, which are reported as the net
increase/decrease in the fair market value of investments in the accompanying
financial statements, represent the net change in the unrealized
appreciation/depreciation in the investment portfolio from the beginning to the
end of the year.
(9) INVESTMENTS:
-----------
Investments held by the Plan at December 31, 1998 are summarized in
Schedule I. The carrying values of individual investments that represent more
than 5% of the Plan's net assets as of December 31, 1998 and 1997 are as
follows:
<TABLE>
<CAPTION>
1998 1997
---- ----
<S> <C> <C>
T. Rowe Price Stable Value Fund $ 5,365,337 $ 6,334,571
Dodge and Cox Balanced Fund 3,693,383 3,655,425
Vanguard Index Trust 500 Fund 10,211,235 6,580,109
Dodge and Cox Stock Fund 4,180,879 4,165,892
Vanguard International Growth Fund 2,169,424 2,339,159
Hancock Special Equities Fund 1,937,267 2,468,575
Putnam New Opportunities Fund 3,977,650 3,374,212
Common Stock Fund 2,240,713 12,387,483
</TABLE>
All investments are stated at market value on the statement of net assets.
Market value for the investments is based on quoted market prices or dealer
quotes.
(10) FEDERAL INCOME TAXES:
--------------------
The Internal Revenue Service issued a determination letter dated December 30,
1994 stating that the Plan was designed in accordance with applicable Internal
Revenue Code requirements as of that date. The Plan has been amended since
receiving the determination letter. However, the Plan administrator and
management believe that the Plan is currently designed and being operated in
compliance with the applicable requirements of the Internal Revenue Code.
Therefore, they believe that the Plan was qualified and the related trust was
tax-exempt for the years ended December 31, 1998, 1997, and 1996.
(11) DISTRIBUTIONS TO PARTICIPANTS:
-----------------------------
There were no distributions payable as of year-end 1998 and 1997.
10
<PAGE> 11
(12) The schedules of allocation of assets available for benefits to investment
funds as of December 31, 1998 and 1997 are as follows:
<TABLE>
<CAPTION>
DECEMBER 31, 1998
--------------------------------------------------------
WESTERN
T. ROWE ASSET
PRICE MANAGEMENT DODGE AND COX
ASSETS CASH STABLE VALUE CORE BALANCED
- ------ ---- ------------ ---------- --------
<S> <C> <C> <C> <C>
Cash $8,117 $ -- $ -- $ --
Investments:
Managed Investment Funds
T. Rowe Price Stable Value -- 5,365,337 -- --
Western Asset Management Core -- -- 677,041 --
Dodge and Cox Balanced -- -- -- 3,693,383
Vanguard Index Trust 500 -- -- -- --
Dodge and Cox Stock -- -- -- --
Vanguard International Growth -- -- -- --
Hancock Special Equities -- -- -- --
Putnam New Opportunities -- -- -- --
Common Stock Fund (Advanta Corp. Common
Stock Class A and B) -- -- -- --
Employer Contribution Receivable -- 157,678 29,115 118,062
Participant Loans Receivable -- -- -- --
------ ---------- -------- ----------
Total Assets Available
For Benefits $8,117 $5,523,015 $706,156 $3,811,445
====== ========== ======== ==========
</TABLE>
11
<PAGE> 12
(12) CONTINUED
<TABLE>
<CAPTION>
DECEMBER 31, 1998
----------------------------------------------------------------
VANGUARD HANCOCK
VANGUARD INDEX DODGE AND INTERNATIONAL SPECIAL
ASSETS TRUST 500 COX STOCK GROWTH EQUITIES
- ------ --------- --------- ------ --------
<S> <C> <C> <C> <C>
Cash $ -- $ -- $ -- $ --
Investments:
Managed Investment Funds
T. Rowe Price Stable
Value -- -- -- --
Western Asset Management Core -- -- -- --
Dodge and Cox Balanced -- -- -- --
Vanguard Index Trust 500 10,211,235 -- -- --
Dodge and Cox Stock -- 4,180,879 -- --
Vanguard International
Growth -- -- 2,169,424 --
Hancock Special Equities -- -- -- 1,937,267
Putnam New Opportunities -- -- -- --
Common Stock Fund (Advanta
Corp. Common Stock
Class A and B) -- -- -- --
Employer Contribution
Receivable 339,703 155,111 92,445 85,369
Participant Loans
Receivable -- -- -- --
----------- ---------- ---------- ----------
Total Assets Available
For Benefits $10,550,938 $4,335,990 $2,261,869 $2,022,636
=========== ========== ========== ==========
</TABLE>
12
<PAGE> 13
(12) CONTINUED
<TABLE>
<CAPTION>
DECEMBER 31, 1998
---------------------------------------------------------------
COMMON PARTICIPANT
PUTNAM NEW STOCK LOANS
ASSETS OPPORTUNITIES FUND RECEIVABLE TOTAL
- ------ ------------- ---- ---------- -----
<S> <C> <C> <C> <C>
Cash $ -- $ -- $ -- $ 8,117
Investments:
Managed Investment Funds
T. Rowe Price Stable
Value -- -- -- 5,365,337
Western Asset Management Core -- -- -- 677,041
Dodge and Cox Balanced -- -- -- 3,693,383
Vanguard Index Trust 500 -- -- -- 10,211,235
Dodge and Cox Stock -- -- -- 4,180,879
Vanguard International
Growth -- -- -- 2,169,424
Hancock Special Equities -- -- -- 1,937,267
Putnam New Opportunities 3,977,650 -- -- 3,977,650
Common Stock Fund (Advanta
Corp. Common Stock
Class A and B) -- 2,240,713 -- 2,240,713
Employer Contribution
Receivable 156,625 134,772 -- 1,268,880
Participant Loans
Receivable -- -- 1,122,983 1,122,983
---------- ---------- ---------- -----------
Total Assets Available
For Benefits $4,134,275 $2,375,485 $1,122,983 $36,852,909
========== ========== ========== ===========
</TABLE>
13
<PAGE> 14
(12) CONTINUED
<TABLE>
<CAPTION>
DECEMBER 31, 1997
----------------------------------------------------------
T. ROWE WESTERN
PRICE ASSET DODGE AND
STABLE MANAGEMENT COX
ASSETS CASH VALUE CORE BALANCED
- ------ ---- ----- ---- --------
<S> <C> <C> <C> <C>
Cash $8,192 $ -- $ -- $ --
Investments:
Managed Investment Funds
T. Rowe Price Stable Value -- 6,334,571 -- --
Western Asset Mgmt. Core -- -- 462,288 --
Dodge & Cox Balanced -- -- -- 3,655,425
Vanguard Index Trust 500 -- -- -- --
Dodge & Cox Stock -- -- -- --
Vanguard International
Growth -- -- -- --
Hancock Special Equities -- -- -- --
Putnam New Opportunities -- -- -- --
Common Stock Fund (Advanta Corp. Common
Stock Class A and B) -- -- -- --
Employer Contribution
Receivable -- 345,395 26,223 136,768
Participant Loans
Receivable -- -- -- --
------ ---------- ---------- ----------
Total Assets Available
For Benefits $8,192 $6,679,966 $ 488,511 $3,792,193
====== ========== ========== ==========
</TABLE>
14
<PAGE> 15
(12) CONTINUED
<TABLE>
<CAPTION>
DECEMBER 31, 1997
-------------------------------------------------------------
VANGUARD VANGUARD HANCOCK
INDEX TRUST DODGE AND INTERNATIONAL SPECIAL
ASSETS 500 COX STOCK GROWTH EQUITIES
- ------ --- --------- ------ --------
<S> <C> <C> <C> <C>
Cash $ -- $ -- $ -- $ --
Investments:
Managed Investment Funds
T.Rowe Price Stable Value -- -- -- --
Western Asset Mgmt Core -- -- -- --
Dodge & Cox Balanced -- -- -- --
Vanguard Index Trust 500 6,580,109 -- -- --
Dodge & Cox Stock -- 4,165,892 -- --
Vanguard International
Growth -- -- 2,339,159 --
Hancock Special Equities -- -- -- 2,468,575
Putnam New Opportunities -- -- -- --
Common Stock Fund (Advanta
Corp. Common Stock
Class A and B) -- -- -- --
Employer Contribution
Receivable 338,784 200,200 152,474 130,714
Participant Loans
Receivable -- -- -- --
---------- ---------- ---------- ----------
Total Assets Available
For Benefits $6,918,893 $4,366,092 $2,491,633 $2,599,289
========== ========== ========== ==========
</TABLE>
15
<PAGE> 16
(12) CONTINUED
<TABLE>
<CAPTION>
DECEMBER 31, 1997
------------------------------------------------------------------
PUTNAM PARTICIPANT
NEW COMMON LOANS
ASSETS OPPORTUNITIES STOCK FUND RECEIVABLE TOTAL
- ------ ------------- ---------- ---------- -----
<S> <C> <C> <C> <C>
Cash $ -- $ -- $ -- $ 8,192
Investments:
Managed Investment Funds
T. Rowe Price Stable Value -- -- -- 6,334,571
Western Asset Mgmt. Core -- -- -- 462,288
Dodge & Cox Balanced -- -- -- 3,655,425
Vanguard Index Trust 500 -- -- -- 6,580,109
Dodge & Cox Stock -- -- -- 4,165,892
Vanguard International
Growth -- -- -- 2,339,159
Hancock Special Equities -- -- -- 2,468,575
Putnam New Opportunities 3,374,212 -- -- 3,374,212
Common Stock Fund (Advanta
Corp. Common Stock
Class A and B) -- 12,387,483 -- 12,387,483
Employer Contribution
Receivable 194,517 285,669 -- 1,810,744
Participant Loans
Receivable -- -- 2,020,290 2,020,290
----------- ----------- ----------- -----------
Total Assets Available
For Benefits $ 3,568,729 $12,673,152 $ 2,020,290 $45,606,940
=========== =========== =========== ===========
</TABLE>
16
<PAGE> 17
(13) The schedules of allocation of plan income and changes in assets available
for benefits to investment funds for the years ended December 31, 1998 and
1997 are as follows:
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1998
-------------------------------------------
WESTERN
T. ROWE PRICE ASSET
STABLE MANAGEMENT
CASH VALUE CORE
---- ----- ----
<S> <C> <C> <C>
INCREASES:
Interest and Dividend
Income $ 2,846 $ 382,239 $ 68,192
Tender Offer -- 1,240,684 159,890
Employee
Contributions -- 626,962 103,919
Employer
Contributions -- 349,939 55,273
Realized Gains
(Losses) on
Investments -- -- (2,714)
Net (Decrease)
Increase in
Fair Market Value
of Investments -- -- (17,724)
------- ----------- --------
2,846 2,599,824 366,836
DECREASES:
Fleet Transaction -- 2,838,736 337,843
Distributions to
Participants (930) 1,575,300 46,433
Investor Advisory
and Trustee Fees -- -- --
------- ----------- --------
(930) 4,414,036 384,276
Net (Decrease)
Increase 3,776 (1,814,212) (17,440)
Interfund Transfers (3,878) 584,745 235,913
Net Loans Issued 27 72,516 (828)
Assets Available
for Benefits,
beginning of year 8,192 6,679,966 488,511
------- ----------- --------
Assets Available
for Benefits, end of
year $ 8,117 $ 5,523,015 $706,156
======= =========== ========
</TABLE>
17
<PAGE> 18
(13) CONTINUED
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1998
-------------------------------------------------------------------
VANGUARD VANGUARD
DODGE & COX INDEX TRUST DODGE & INTERNATIONAL
BALANCED 500 COX STOCK GROWTH
-------- --- --------- ------
<S> <C> <C> <C> <C>
INCREASES:
Interest and Dividend
Income $ 347,580 $ 175,349 $ 420,479 $ 42,736
Tender Offer 573,963 2,535,273 850,754 247,500
Employee
Contributions 471,899 1,347,231 681,912 392,688
Employer
Contributions 236,102 642,487 320,033 192,986
Realized Gains
(Losses) on
Investments (9,897) 704,674 (22,247) (18,615)
Net (Decrease)
Increase in
Fair Market Value
of Investments (73,918) 1,592,672 (140,425) 392,231
---------- ----------- ---------- ----------
1,545,729 6,997,686 2,110,506 1,249,526
DECREASES:
Fleet Transaction 1,074,255 3,617,164 1,677,999 1,299,213
Distributions to
Participants 485,030 1,265,154 438,179 452,235
Investor Advisory
and Trustee Fees -- -- -- --
---------- ----------- ---------- ----------
1,559,285 4,882,318 2,116,178 1,751,448
Net (Decrease)
Increase (13,556) 2,115,368 (5,672) (501,922)
Interfund Transfers 45,495 1,530,301 (8,616) 262,346
Net Loans Issued (12,687) (13,624) (15,814) 9,812
Assets Available
for Benefits,
beginning of year 3,792,193 6,918,893 4,366,092 2,491,633
Assets Available ---------- ----------- ---------- ----------
for Benefits, end
of year $3,811,445 $10,550,938 $4,335,990 $2,261,869
========== =========== ========== ==========
</TABLE>
18
<PAGE> 19
(13) CONTINUED
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1998
-----------------------------------------------
HANCOCK PUTNAM
SPECIAL NEW COMMON STOCK
EQUITIES OPPORTUNITIES FUND
-------- ------------- ----
<S> <C> <C> <C>
INCREASES:
Interest and
Dividend Income $ 28,446 $ 122,615 $ 68,374
Tender Offer 304,709 757,894 (3,743,249)
Employee
Contributions 392,386 717,180 609,131
Employer
Contributions 176,347 312,581 305,995
Realized Gains
(Losses) on
Investments 17,114 345,849 403,368
Net (Decrease)
Increase in
Fair Market Value
of Investments (138,647) 481,215 (3,025,230)
---------- ---------- -----------
780,355 2,737,334 (5,381,611)
DECREASES:
Fleet Transaction 977,455 1,722,069 1,475,343
Distributions to
Participants 444,229 771,490 510,265
Investor Advisory
and Trustee Fees -- -- --
---------- ---------- -----------
1,421,684 2,493,559 1,985,608
Net (Decrease)
Increase (641,329) 243,775 (7,367,219)
Interfund Transfers 28,987 305,920 (2,981,213)
Net Loans Issued 35,689 15,851 50,765
Assets Available
for Benefits,
beginning of year 2,599,289 3,568,729 12,673,152
Assets Available ---------- ---------- -----------
for Benefits, end
of year $2,022,636 $4,134,275 $ 2,375,485
========== ========== ===========
</TABLE>
19
<PAGE> 20
(13) CONTINUED
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1998
------------------------------------
PARTICIPANT
LOANS
RECEIVABLE TOTAL
---------- -----
<S> <C> <C>
INCREASES:
Interest and
Dividend Income $ 137,157 $ 1,796,013
Tender Offer -- 2,927,418
Employee
Contributions -- 5,343,308
Employer
Contributions -- 2,591,743
Realized Gains
(Losses) on
Investments -- 1,417,532
Net (Decrease)
Increase in
Fair Market Value
of Investments -- (929,826)
---------- -----------
137,157 13,146,188
DECREASES:
Fleet Transaction 797,290 15,817,367
Distributions to
Participants 95,467 6,082,852
Investor Advisory
and Trustee Fees -- --
---------- -----------
892,757 21,900,219
Net (Decrease)
Increase (755,600) (8,754,031)
Interfund Transfers -- --
Net Loans Issued (141,707) --
Assets Available
for Benefits,
beginning of year 2,020,290 45,606,940
---------- -----------
Assets Available
for Benefits, end
of year $1,122,983 $36,852,909
========== ===========
</TABLE>
20
<PAGE> 21
(13) Continued
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1997
------------------------------------------------------------------
STRATEGIC
BALANCED GROWTH/
CASH GIC PORTFOLIO VALUE
---- --- --------- -----
<S> <C> <C> <C> <C>
INCREASES:
Interest and Dividend
Income $ 27,999 $ 150 $ 173 $ 243
Employee
Contributions -- 342,045 413,153 561,968
Employer
Contributions -- 66,712 100,901 130,025
Realized Gains
(Losses) on
Investments -- 158,785 947,230 1,424,943
Net (Decrease) Increase in
Fair Market Value
of Investments -- (1,779) (4,546) 573
--------- ----------- ----------- -----------
27,999 565,913 1,456,911 2,117,752
DECREASES:
Distributions to
Participants 407,367 224,666 172,473 276,044
Investor Advisory
and Trustee Fees -- 12,537 39,191 50,169
--------- ----------- ----------- -----------
407,367 237,203 211,664 326,213
Net (Decrease)
Increase (379,368) 328,710 1,245,247 1,791,539
Interfund Transfers 56,954 (3,642,255) (5,262,847) (6,509,460)
Net Loans Issued 115 (75,018) (56,636) (41,992)
Assets Available
for Benefits,
beginning of year 330,491 3,388,563 4,074,236 4,759,913
--------- ----------- ----------- -----------
Assets Available
for Benefits, end
of year $ 8,192 $ -- $ -- $ --
========= =========== =========== ===========
</TABLE>
21
<PAGE> 22
(13) CONTINUED
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1997
---------------------------------------------------------------------
INTERNATIONAL STRATEGIC T. ROWE PRICE WESTERN ASSET
EQUITY GROWTH STABLE FUND MANAGEMENT CORE
------ ------ ----------- ---------
<S> <C> <C> <C> <C>
INCREASES:
Interest and Dividend
Income $ 126 $ 311 $ 165,376 $ 23,884
Employee
Contributions 305,349 540,307 629,244 39,375
Employer
Contributions 72,326 183,884 574,282 37,882
Realized Gains
(Losses) on
Investments 443,122 1,781,212 -- (31)
Net (Decrease) Increase in
Fair Market Value
of Investments 11,850 36,906 -- (1,399)
----------- ----------- ----------- -----------
832,773 2,542,620 1,368,902 99,711
DECREASES:
Distributions to
Participants 89,631 349,702 1,517,119 (1,123)
Investor Advisory
and Trustee Fees 23,107 65,997 -- --
----------- ----------- ----------- -----------
112,738 415,699 1,517,119 (1,123)
Net (Decrease)
Increase 720,035 2,126,921 (148,217) 100,834
Interfund Transfers (3,253,549) (8,742,251) 6,834,093 399,825
Net Loans Issued (39,707) (71,977) (5,910) (12,148)
Assets Available
for Benefits,
beginning of year 2,573,221 6,687,307 -- --
----------- ----------- ----------- -----------
Assets Available
for Benefits, end
of year $ -- $ -- $ 6,679,966 $ 488,511
=========== =========== =========== ===========
</TABLE>
22
<PAGE> 23
(13) CONTINUED
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1997
-------------------------------------------------------------------
DODGE AND VANGUARD VANGUARD
COX INDEX TRUST DODGE AND INTERNATIONAL
BALANCED 500 COX STOCK GROWTH
-------- --- --------- ------
<S> <C> <C> <C> <C>
INCREASES:
Interest and Dividend
Income $ 216,906 $ 94,707 $ 265,857 $ 99,522
Employee
Contributions 320,992 562,225 367,542 318,929
Employer
Contributions 200,407 470,524 288,332 222,925
Realized Gains
(Losses) on
Investments 1,935 9,103 2,773 (24,082)
Net (Decrease) Increase in
Fair Market Value
of Investments (118,215) 235,571 (207,479) (360,558)
---------- ---------- ---------- ----------
622,025 1,372,130 717,025 256,736
DECREASES:
Distributions to
Participants 26,287 419,481 172,862 167,853
Investor Advisory
and Trustee Fees -- -- -- --
---------- ---------- ---------- ----------
26,287 419,481 172,862 167,853
Net (Decrease)
Increase 595,738 952,649 544,163 88,883
Interfund Transfers 3,214,495 5,969,570 3,840,979 2,425,432
Net Loans Issued (18,040) (3,326) (19,050) (22,682)
Assets Available
for Benefits,
beginning of year -- -- -- --
---------- ---------- ---------- ----------
Assets Available
for Benefits, end
of year $3,792,193 $6,918,893 $4,366,092 $2,491,633
========== ========== ========== ==========
</TABLE>
23
<PAGE> 24
(13) Continued
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1997
---------------------------------------------
HANCOCK PUTNAM COMMON
SPECIAL NEW STOCK
EQUITIES OPPORTUNITIES FUND
-------- ------------- ----
<S> <C> <C> <C>
INCREASES:
Interest and
Dividend Income $ -- $ 73,101 $ 254,796
Employee
Contributions 254,940 338,533 1,514,708
Employer
Contributions 192,187 284,161 671,994
Realized Gains
(Losses) on
Investments 18,954 11,819 (179,834)
Net (Decrease) Increase
in Fair Market Value
of Investments 94,083 128,358 (9,374,395)
---------- ---------- -----------
560,164 835,972 (7,112,731)
DECREASES:
Distributions to
Participants 165,478 126,316 974,958
Investor Advisory
and Trustee Fees -- -- 17,585
---------- ---------- -----------
165,478 126,316 992,543
Net (Decrease)
Increase 394,686 709,656 (8,105,274)
Interfund Transfers 2,233,765 2,882,821 (447,572)
Net Loans Issued (29,162) (23,748) (138,330)
Assets Available
for Benefits,
beginning of year -- -- 21,364,328
---------- ---------- -----------
Assets Available
for Benefits, end
of year $2,599,289 $3,568,729 $12,673,152
========== ========== ===========
</TABLE>
24
<PAGE> 25
(13) Continued
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1997
------------------------------------
PARTICIPANT
LOANS
RECEIVABLE TOTAL
---------- -----
<S> <C> <C>
INCREASES:
Interest and
Dividend Income $ 164,140 $ 1,387,291
Employee
Contributions -- 6,509,310
Employer
Contributions -- 3,496,542
Realized Gains
(Losses) on
Investments -- 4,595,929
Net (Decrease) Increase
in Fair Market Value
of Investments -- (9,561,030)
---------- -----------
164,140 6,428,042
DECREASES:
Distributions to
Participants 185,639 5,274,753
Investor Advisory
and Trustee Fees -- 208,586
---------- -----------
185,639 5,483,339
Net (Decrease)
Increase (21,449) 944,703
Interfund Transfers -- --
Net Loans Issued 557,611 --
Assets Available
for Benefits,
beginning of year 1,484,178 44,662,237
---------- -----------
Assets Available
for Benefits, end
of year $2,020,290 $45,606,940
========== ===========
</TABLE>
25
<PAGE> 26
SCHEDULE I
ADVANTA CORP.
EMPLOYEE SAVINGS PLAN
EIN 23-1462070
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1998
<TABLE>
<CAPTION>
MARKET
COST VALUE
---- -----
<S> <C> <C>
Cash $ 8,117 $ 8,117
Managed Investment Funds
T. Rowe Price Stable Value: 5,365,337 5,365,337
Market value per share $1.00
Western Asset Management Core: 696,164 677,041
Market value per share $11.12
Dodge and Cox Balanced: 3,885,515 3,693,383
Market value per share $65.22
Vanguard Index Trust 500: 8,382,992 10,211,235
Market value per share $113.95
Dodge and Cox Stock: 4,528,783 4,180,879
Market value per share $90.70
Vanguard International Growth: 2,137,751 2,169,424
Market value per share $18.77
Hancock Special Equities: 1,981,836 1,937,267
Market value per share $24.72
Putnam New Opportunities: 3,368,077 3,977,650
Market value per share $58.43
*Advanta Corp. Common Stock Fund 3,854,634 2,240,713
Class A: market value $13.25 per share
Class B: market value $11.06 per share
Participant Loans Receivable,
Bearing interest from 7.5% to 10.5% 1,122,983 1,122,983
----------- -----------
$35,332,189 $35,584,029
=========== ===========
</TABLE>
*Party-in-interest to the Plan
26
<PAGE> 27
ADVANTA CORP.
EMPLOYEE SAVINGS PLAN
EIN 23-1462070
SCHEDULE II
ITEM 27d- SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1998
Transactions set forth below are those which involve an amount in excess of 5%
of the market value of the Plan's assets at the beginning of the year.
<TABLE>
<CAPTION>
IDENTITY DESCRIPTION PURCHASE SELLING COST NET GAIN NUMBER OF
OF PARTY OF ASSET PRICE PRICE OF ASSET OR (LOSS) TRANSACTIONS
-------- ----------- --------- ------- -------- --------- ------------
<S> <C> <C> <C> <C> <C> <C>
Single:
- -------
Vanguard Index 500 Mutual Fund $ 2,535,273 $ -- $ 2,535,273 $ -- 1
EB Short Term MM
F/Directed Money Market 5,720,883 -- 5,720,883 -- 1
----------- ----------- ----------- ----------
Total $ 8,256,156 $ -- $ 8,256,156 $ --
=========== =========== =========== ==========
T. Rowe Price
Stable Value Mutual Fund $2,838,736 $2,838,736 $2,838,736 $ -- 1
Vanguard Index 500 Mutual Fund 3,149,726 3,617,164 3,149,726 467,438 1
EB Short Term MM
F/Directed Money Market 5,657,497 5,657,497 5,657,497 -- 1
----------- ----------- ----------- ----------
Total $11,645,959 $12,113,397 $11,645,959 $ 467,438
=========== =========== =========== ==========
</TABLE>
27
<PAGE> 28
ADVANTA CORP.
EMPLOYEE SAVINGS PLAN
EIN 23-1462070
SCHEDULE II
ITEM 27d- SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1998
Transactions set forth below are those which involve an amount in excess of 5%
of the market value of the Plan's assets at the beginning of the year.
<TABLE>
<CAPTION>
IDENTITY DESCRIPTION PURCHASE SELLING COST NET GAIN NUMBER OF
OF PARTY OF ASSET PRICE PRICE OF ASSET OR (LOSS) TRANSACTIONS
-------- ----------- --------- ------- -------- --------- ------------
<S> <C> <C> <C> <C> <C> <C>
Series:
- -------
Advanta Corp CL B Common Stock $ 772,375 $ -- $ 772,375 $ -- 52
Dodge and Cox Balanced Mutual Fund 2,138,453 -- 2,138,453 -- 100
John Hancock
Special Equities Mutual Fund 1,245,612 -- 1,245,612 -- 90
Vanguard
International Growth Mutual Fund 1,420,235 -- 1,420,235 -- 93
Dodge and Cox
Stock Fund Mutual Fund 2,811,868 -- 2,811,868 -- 104
Putnam New
Opportunities Mutual Fund 2,607,597 -- 2,607,597 -- 122
T. Rowe Price
Stable Value Mutual Fund 4,794,134 -- 4,794,134 -- 83
Vanguard
Index 500 Mutual Fund 7,169,882 -- 7,169,882 -- 156
EB Short Term MM
F/Directed Money Market 14,360,740 -- 14,360,740 -- 125
----------- ----------- ----------- -----------
Total $37,320,896 $ -- $37,320,896 $ --
=========== =========== =========== ===========
</TABLE>
28
<PAGE> 29
ADVANTA CORP.
EMPLOYEE SAVINGS PLAN
EIN 23-1462070
SCHEDULE II
ITEM 27d- SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1998
Transactions set forth below are those which involve an amount in excess of 5%
of the market value of the Plan's assets at the beginning of the year.
<TABLE>
<CAPTION>
IDENTITY DESCRIPTION PURCHASE SELLING COST NET GAIN NUMBER OF
OF PARTY OF ASSET PRICE PRICE OF ASSET OR (LOSS) TRANSACTIONS
-------- ----------- --------- ------- -------- --------- ------------
<S> <C> <C> <C> <C> <C> <C>
Series:
- -------
Advanta Corp CL B Common Stock $ 3,009,760 $ 2,819,921 $ 3,009,760 $(189,839) 130
Dodge and Cox Balanced Mutual Fund 2,026,578 2,016,680 2,026,578 (9,898) 84
John Hancock Special
Equities Mutual Fund 1,638,269 1,655,383 1,638,269 17,114 87
Vanguard
International Growth Mutual Fund 1,982,202 1,963,587 1,982,202 (18,615) 89
Dodge & Cox Stock Mutual Fund 2,656,449 2,634,202 2,656,449 (22,247) 93
Putnam New
Opportunities Mutual Fund 2,484,907 2,830,755 2,484,907 345,848 83
T. Rowe Price
Stable Value Mutual Fund 5,763,368 5,763,368 5,763,368 -- 97
Vanguard
Index 500 Mutual Fund 5,129,956 5,834,630 5,129,956 704,674 92
EB Short Term MM
F/Directed Money Market 14,361,908 14,361,908 14,361,908 -- 98
----------- ----------- ----------- ---------
Total $39,053,397 $39,880,434 $39,053,397 $ 827,037
=========== =========== =========== =========
</TABLE>
29
<PAGE> 30
EXHIBIT INDEX
-------------
EXHIBIT NO. DOCUMENT
- ----------- --------
1 Consent of Independent Public Accountants
31
<PAGE> 1
EXHIBIT I
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation of our
report included in this Form 11-K, into the Company's previously filed Form S-8
Registration Statements File Nos. 33-10790, 33-47308, 33-50209, 333-01681 and
333-04471.
Philadelphia, PA Arthur Andersen LLP
June 29, 1999
32
