Advanta Reduces Deposit Liabilities by $389.7 Million.Business Editors SPRING HOUSE, Pa.--(BUSINESS WIRE)--June 28, 2001 Advanta Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ADVNB; ADVNA ADVNA Advanta Corporation (stock symbol) ), capitalizing on its large cash position, announced today that its wholly-owned subsidiary Advanta National Bank has sold $389.7 million of deposit liabilities to E*TRADE Bank, a wholly-owned subsidiary of E*TRADE Group, Inc. (NYSE NYSE See: New York Stock Exchange :ET). "Advanta received more than $1 billion in cash from the sale of our mortgage business in February. Given our large cash position, removing these deposits from our balance sheet has many benefits," said William Rosoff, President. "Most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , the deposit sale reduces net interest expense and excess liquidity." The Company expects that the sale of deposits will reduce net interest expense related to the Advanta National Bank portfolio by over $7 million. After recording a $2.9 million pretax loss pretax loss A loss reported before tax benefits are considered. on the transaction for the second quarter of 2001, which is an effective acceleration of net interest expense that otherwise would have been incurred during future quarters, the net savings to Advanta will be in excess of $4 million. The deposit sale also furthers Advanta's previously announced and ongoing plan to reduce debt. After closing the deposit sale, the Company has reduced debt and deposits by approximately $870 million since March 31, 2001. Advanta is a highly focused financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company which has been providing innovative financial solutions since 1951. Advanta leverages its first-class direct marketing and information based expertise to develop state-of-the-art data warehousing and statistical modeling tools that identify potential customers and new target markets. Over the past five years, it has used these distinctive capabilities to become one of the nation's largest issuers of MasterCard business credit cards to small businesses. Learn more about Advanta at www.advanta.com. This Press Release contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The most significant among these risks and uncertainties are factors that may impact the Company's net savings due to the sale of deposits, including: (1) the Company's managed net interest margin; (2) interest rate fluctuations; (3) the effects of government regulation, including restrictions and limitations imposed by banking laws, regulators, examinations, and the agreements between the Company's bank subsidiaries and their regulators; (4) the amount and cost of financing available to the Company; and (5) the ratings on the debt of the Company and its subsidiaries. Additional risks that may affect the Company's future performance are detailed in the Company's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and its Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. . |
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