Advanta Reports Second Quarter Results and Updates 2000 Guidance.Business Editors SPRING HOUSE, Pa.--(BUSINESS WIRE)--Aug. 2, 2000 Advanta Advanta is an American banking company. Currently, it controls two banks, Advanta Bank Corp and Advanta National Bank. The banking corporation is not associated with Advanta Energy Corp., an energy consulting practice based in California. 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) ) today announced results for the second quarter of 2000. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was $16.6 million, or $0.65 per share on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis for Class A and Class B shares combined, reflecting income for Advanta Mortgage that is essentially the same as a portfolio lender and excluding previously announced carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. adjustments made pursuant to agreements with the Office of the Comptroller of the Currency The Office of the Comptroller of the Currency (or OCC) was established by the National Currency Act of 1863 and serves to charter, regulate, and supervise all national banks and the federal branches and agencies of foreign banks in the United States. . While pro forma operating income for the Company was up 30% year on year before the carrying value adjustments, the Company reported a net loss for the quarter of $192.7 million or $7.64 per share. This was largely because Advanta National Bank ("ANB ANB American National Biography ANB American National Bank ANB Alaska Native Brotherhood ANB Arab National Bank ANb Agoraphobic Nosebleed (band) ANB Amarillo National Bank (Texas) ") recorded a $214 million non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. resulting from a reduction in the carrying value of its retained interests Retained interest (also colloquially known as a payout penalty) is future, currently unpaid, interest that some lenders add to the remaining principal of a loan to determine a payout figure in the event that the loan is terminated before the completion of the original term. in mortgage securitizations and a $22 million non-cash charge reflecting an increase in mortgage loan loss reserves. "We are disappointed that the impact of our agreements with bank regulators has obscured what were otherwise very solid operating results for the quarter," said Chairman and Chief Executive Officer Dennis Dennis is a male first name derived from the Greco-Roman name Dionysius meaning "servant of Dionysus", the Thracian god of wine, which is ultimately derived from the Greek Dios (Διος, "of Zeus") combined with Nysos or Nysa (Νυσα), where the Alter. "In fact, Advanta Business Cards achieved its highest income level for any quarter to date. And while there is heightened political and regulatory attention toward subprime lending  This article or section may deal primarily with the U.S. and may not present a worldwide view. , the demand
for non-conforming mortgage A non-conforming mortgage is a term in the United States for a residential mortgage that does not conform to the loan purchasing guidelines set by the Federal National Mortgage Association /Federal Home Loan Mortgage Corporation (Fannie Mae and Freddie Mac). loans remains strong."During the second half of the year, the Company expects pro forma operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before per share to be in the range of $0.90-$1.10. This primarily reflects the impact of the regulatory agreements on the businesses which operate through the Company's bank subsidiaries. In particular, this reflects lower mortgage loan originations 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. partially offset by Business Card results. The modified guidance also reflects that while Business Card will continue to grow, the Company does not anticipate maintaining the same levels of Business Card growth during the second half of the year as it achieved during the first half of the year. Together with the pro forma operating results of $1.28 through June June: see month. 30, 2000, the pro forma operating results for the full year are expected to be in the range of $2.18-$2.38 per diluted share, a 7% to 17% increase from the $2.04 earned in 1999. Net income for Advanta Business Cards was $14.8 million this quarter, assuming an effective tax rate of 38.5%. This represents a 73% increase over net income of $8.6 million reported for the first quarter of 2000 and a 206% increase over net income of $4.8 million for the second quarter of 1999. This increase is primarily due to growth in the number of accounts and receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed . Originations increased approximately 91% this quarter as compared to the quarter ended June 30, 1999. Managed receivables for Advanta Business Cards at the end of the quarter were $1.4 billion, an increase of 37% year to date and 61% over the second quarter of 1999. On a basis that is essentially the same as a portfolio lender, net income for Advanta Mortgage was $5.7 million excluding carrying value adjustments, as compared to $8.3 million for the quarter ended June 30, 1999. The decrease year on year is substantially due to lower mortgage loan volumes that resulted primarily from the implementation of the regulatory agreements. This was partially offset by higher yields on direct originations and an increase in subservicing revenues from growth in the subservicing portfolio. The weighted average yield of mortgage loans directly originated in the second quarter increased by 34 basis points over the first quarter. Subservicing revenues increased due to continued growth in the subservicing portfolio which was $13.6 billion at the end of the second quarter. As announced on July July: see month. 31, consistent with an agreement with the OCC OCC See: Options Clearing Corporation OCC See Options Clearing Corporation (OCC). , the Company calculated ANB's retained interests in mortgage securitizations at June 30 using an 18% discount rate on the interest-only strip Interest-only strip (IO) A security based solely on the interest payments from a pool of mortgages, Treasury bonds, or other bonds. Once the principal on the mortgages or bonds has been repaid, interest payments stop, and the value of the IO falls to zero. ("I/O (Input/Output) The transfer of data between the CPU and a peripheral device. Every transfer is an output from one device and an input to another. See PC input/output. I/O - Input/Output ") and subordinated trust assets, a 15% discount rate on the contractual mortgage servicing Mortgage servicing The collection of monthly payments and penalties, record keeping, payment of insurance and taxes, and possible settlement of default , involved with a mortgage loan. rights ("CMSR CMSR Centro Mondialità Sviluppo Reciproco (Italian) CMSR Compiled Military Service Record CMSR Configuration Management Status Report "), a prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. rate that represents the average prepayment experience for the six months ended February February: see month. 29, 2000 and cumulative loss rates as a percentage of original principal balance of 6% on closed end mortgage loans and 8% for HELOC HELOC Home Equity Line Of Credit (open end) mortgage loans. ANB recorded a $214 million non-cash charge to reduce the June 30 carrying value of its retained interests in mortgage securitizations. Also pursuant to the agreement with the OCC, ANB recorded a $22 million non-cash charge to increase its allowance for loan losses at June 30, 2000. After giving effect to the terms of the agreement with the OCC, ANB's on-balance sheet allowance for loan losses will represent 8.66% of total outstanding mortgage loans held for investment and the estimated liabilities for anticipated charge-offs, netted against the I/O and subordinated trust assets, will represent 8.21% of outstanding off-balance sheet mortgage loans at June 30, 2000. For the period from April 1, 2000 through June 30, 2000, cash collections received by the securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. trusts on ANB's retained interests related to mortgage securitization transactions completed prior to January January: see month. 1, 2000 aggregated approximately $21.3 million, or approximately 30% to 40% of the adjusted carrying value of the retained interests on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis. At June 30, 2000, the carrying value of retained interests in mortgage securitizations at the Company's other subsidiaries have been calculated using assumptions comparable to those used for ANB. In response to the regulatory agreements announced June 2, the Company also modified its charge-off Eliminate or write off. The term charge-off is used to describe the process of removing from the records of a company something that was once regarded as an asset but has subsequently become worthless. policy for delinquent delinquent 1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent. DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty. mortgages to 180 days. On a pro forma basis, using the prior quarter's methodology, the charge-off rate was 1.28% as compared to 1.14% for first quarter 2000. The 14 basis point increase predominately reflects an increase in the average age of the mortgage portfolio. Advanta generated approximately $30 million of cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses , after considering key mortgage non-cash income and expense items and the cash impact of mortgage loan originations. During the second quarter, the Company financed, with parent and bank funds, loan receivables on its books totaling $1.7 billion. Advanta ended the quarter with over $900 million in total liquidity. During the second quarter, the Company renewed a $250 million mortgage warehouse line for an additional one year term, and elected to retire a $250 million mortgage commercial paper facility that was used infrequently in·fre·quent adj. 1. Not occurring regularly; occasional or rare: an infrequent guest. 2. . In addition, the Company renewed a $280 million business card commercial paper facility and added a new $200 million business card facility. At June 30, 2000, the Company had available approximately $1.4 billion in unused warehouse lines and commercial paper conduit conduit /con·du·it/ (kon´doo-it) channel. ileal conduit the surgical anastomosis of the ureters to one end of a detached segment of ileum, the other end being used to form a stoma on the facilities. In July, the Company's $2 billion shelf registration statement for Business Card securitizations became effective, adding significant funding capacity for that business. The Company continues to evaluate strategic alternatives for its Mortgage and Leasing businesses with the goal of maximizing shareholder value. President Bill Rosoff stated, "We are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op at the response to our initiation of this process. We have entered into preliminary discussions with a number of parties concerning our Mortgage business and have begun the due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. process. We are also encouraged by the number of inquiries and level of interest from highly qualified parties with respect to our Leasing business." Advanta management will hold a conference call with analysts and institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. today, August 2, 2000, at 9:00 am Eastern time. The call will be broadcast simultaneously over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the through http://www.advanta.com or http://www.vcall.com. To listen to the live call, please go to the web site at least fifteen minutes early to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. , and install any necessary audio software. For those unable to listen to the live broadcast, replays will be available shortly after the call on the Vcall site. Advanta (www.advanta.comhttp://www.advanta.com) 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 with over 2,900 employees, servicing over $26 billion of assets, including approximately $12.4 billion in managed assets and approximately $13.6 billion in assets serviced for third parties. Advanta provides consumers and small businesses with targeted financial products and services, including non-conforming mortgages, business credit cards, equipment leases, insurance and deposit products. The Company is also one of the largest servicers of non-conforming mortgages for third parties in the country. Advanta has leveraged its first-class direct marketing and information based expertise to develop state-of-the-art data warehousing See data warehouse. data warehousing - data warehouse and statistical modeling tools that identify potential customers and new target markets. Advanta created one of the first automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. and sales engines in the non-conforming mortgage industry. The Company also offers its customers and business partners a broad range of self-service financial solutions and other services on the Internet. Advanta was named one of the 500 Most Admired ad·mire v. ad·mired, ad·mir·ing, ad·mires v.tr. 1. To regard with pleasure, wonder, and approval. 2. To have a high opinion of; esteem or respect. 3. Companies in America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. in FORTUNE Magazine's most recent annual survey. In June 2000, American Banker American Banker is a daily newspaper covering the financial services industry. Founded in 1835 and based in New York, American Banker's 70 reporters and editors in six cities monitor developments and breaking news affecting banks. ranked Advanta Bank Corp. third among the top 100 community banks in the nation in terms of return on average assets. This Press Release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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: (1) the Company's managed net interest margin; (2) competitive pressures; (3) factors that affect the level of delinquencies and charge-offs, including a deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. of general economic conditions; (4) the rate of prepayments Prepayments Payments made in excess of scheduled mortgage principal repayments. ; (5) interest rate fluctuations; (6) the level of expenses; (7) managed and sub-serviced receivables volume; (8) the timing of the securitizations of the Company's receivables; (9) the level of insurance policy renewals; (10) 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 respective regulators; (11) relationships with significant vendors, business partners and customers; (12) the amount and cost of financing available to the Company; (13) the ratings on the debt of the Company and its subsidiaries; (14) the ability to attract and retain key personnel and customers; and (15) the results of the evaluation of strategic alternatives. 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. .
Advanta Corp.
Supplemental Consolidating Income Statement
(in thousands)
Three Months Ended June 30, 2000
----------------------------------------------------
Advanta Advanta
Advanta Business Leasing
Mortgage Cards Services Other(a) Total
--------- --------- --------- --------- ------
Revenues:
Interest
income $ 48,844 $ 19,136 $ 3,599 $ 14,945 $ 86,524
Securitization
income (196,037) 17,994 (2,564) -- (180,607)
Servicing
revenues 36,220 4,546 1,765 -- 42,531
Other
revenues, net 2,513 16,721 3,790 1,327 24,351
--------- --------- --------- --------- ---------
Total revenues (108,460) 58,397 6,590 16,272 (27,201)
--------- --------- --------- --------- ---------
Expenses:
Operating
expenses 62,616 21,470 9,033 1,650 94,769
Interest
expense 27,063 7,545 3,108 14,014 51,730
Provision
for credit
losses 21,385 5,050 1,025 -- 27,460
Minority int
in inc. of
consolidated
sub 1,776 276 168 -- 2,220
--------- --------- --------- --------- ---------
Total expenses 112,840 34,341 13,334 15,664 176,179
--------- --------- --------- --------- ---------
Income (loss)
before income
taxes (221,300) 24,056 (6,744) 608 (203,380)
Income
tax expense
(benefit) (5,953) (5,367) 3,902 (3,267) (10,685)
--------- --------- --------- --------- ---------
Net income
(loss) $(215,347) $ 29,423(b) $(10,646) $ 3,875 $(192,695)
========= ========= ========= ========= =========
(a) Other includes insurance operations and investment activities
not attributable to other segments.
(b) Advanta Business Cards would have an effective tax rate of 38.5%
on a stand-alone basis, resulting in net income of $14,794.
Advanta Corp.
Reconciliation of Advanta Mortgage to
Portfolio Lender Earnings Format Before Valuation Adjustments
(in thousands)
Three Months Ended June 30, 2000
-------------------------------------------
Advanta
Mortgage
as a
Portfolio
Lender
Advanta Pro Forma Before
Mortgage as & Other Valuation
Reported Adjustments Adjustments
(g)
----------- ------------ ------------
Revenues:
Interest
income $ 48,844 $185,174 (a) $ 234,018
Securitization
income (196,037) 196,037 (b) --
Servicing
revenues 36,220 (14,306) (c) 21,914
Other
revenues, net 2,513 -- 2,513
--------- --------- ---------
Total revenues (108,460) 366,905 258,445
--------- --------- ---------
Expenses:
Operating
expenses 62,616 1,869 (d) 64,485
Interest
expense 27,063 131,926 (a) 158,989
Provision
for credit
losses 21,385 2,575 (e) 23,960
Minority
interest
in income
of
consolidated
subsidiary 1,776 -- 1,776
--------- --------- ---------
Total expenses 112,840 136,370 249,210
--------- --------- ---------
Income
(loss) before
income taxes (221,300) 230,535 9,235
Income
tax expense
(benefit) (5,953) 9,508 3,555
--------- --------- ---------
Net income
(loss) $(215,347) $ 221,027 $ 5,680
--------- --------- ---------
Pro Forma
Pro Consolidated
Forma Before
Remaining Valuation
Businesses (f) Adjustments
-------------- --------------
Revenues:
Interest
income $ 37,680 $ 271,698
Securitization
income 15,430 15,430
Servicing
revenues 6,311 28,225
Other
revenues, net 21,630 24,143
--------- ---------
Total revenues 81,051 339,496
--------- ---------
Expenses:
Operating
expenses 32,153 96,638
Interest
expense 24,667 183,656
Provision
for credit
losses 6,075 30,035
Minority
interest
in income
of
consolidated
subsidiary 444 2,220
--------- ---------
Total expenses 63,339 312,549
--------- ---------
Income
(loss) before
income taxes 17,712 26,947
Income
tax expense
(benefit) 6,819 10,374
--------- ---------
Net income
(loss) $ 10,893 $ 16,573
--------- ---------
Footnotes for pro forma adjustments:
(a) Represents the adjustment to interest income and interest
expense as if the securitized mortgage loans were still owned
by Advanta and remained on the balance sheet for the period
presented.
(b) Represents the reclassification of net gains or losses
recognized on the sale of mortgage loans for the period.
(c) Represents the reclassification of servicing revenues on
securitized mortgage loans for the period presented.
(d) Represents the reclassification of securitization
costs incurred by Advanta.
(e) Represents the amount by which the provision for credit losses
would have increased had the securitized mortgage loans
remained on the balance sheet and the provision for credit
losses on securitized receivables been equal to actual reported
charge-offs.
(f) Adjusted to exclude the pretax gains associated with Advanta
Partners investments of $10,914 in the three months ending
March 31, 2000 and the pretax reduction in the valuation of
Advanta's retained interests in leasing securitizations of
$9,500 during the three months ended March 31, 2000. Also
adjusted income tax expense to normalized rate of 38.5%.
(g) Adjusted to exclude carrying value adjustments to retained
interests in securitizations, including contractual mortgage
servicing rights, and loan loss reserves. Also adjusted income
tax expense to normalized rate of 38.5%.
Advanta Corp.
Highlights
(in thousands)
Three Months Ended
--------------------------------------------------
Percent
Change
From
ORIGINATIONS June 30, March 31, June 30, Prior
------------ 2000 2000 1999 Quarter
------------ ------------ ------------ -------
Direct $ 301,393 $ 380,040 $ 407,880 -20.7%
Broker 198,277 183,254 199,889 8.2
Other indirect 3,238 1,454 119,920 122.7
------------ ------------ ------------ -------
Total Advanta
Mortgage
loans $ 502,908 $ 564,748 $ 727,689 -11.0%
Business
credit
cards $ 900,381 $ 747,587 $ 471,239 20.4%
Leases 88,437 109,082 113,384 -18.9
SECURITIZATION/
SALES VOLUME
Advanta
Mortgage $ 477,238 $ 483,944 $ 706,639 -1.4%
Business credit
cards 0 157,067 0 -100.0
Leases 126,960 107,253 105,909 18.4
------------ ------------ ------------ -------
Total
securitization/
sales volume $ 604,198 $ 748,264 $ 812,548 -19.3%
AVERAGE MANAGED
RECEIVABLES
Mortgage loans $ 8,413,993 $ 8,346,321 $ 8,267,715 0.8%
Business credit
cards 1,319,434 1,120,635 866,732 17.7
Leases 802,661 805,404 692,356 -0.3
Auto loans 67,105 77,445 140,560 -13.4
Other loans 19,939 20,752 17,019 -3.9
------------ ------------ ------------ -------
Total average
managed
receivables $ 10,623,132 $ 10,370,557 $ 9,984,382 2.4%
Total average
serviced
receivables $ 24,000,185 $ 22,877,022 $ 19,185,050 4.9%
ENDING MANAGED
RECEIVABLES
Mortgage loans $ 8,381,881 $ 8,390,122 $ 8,293,166 -0.1%
Business credit
cards 1,428,732 1,226,210 886,237 16.5
Leases 820,265 821,258 744,123 -0.1
Auto loans 56,796 74,652 122,836 -23.9
Other loans 21,689 19,521 17,187 11.1
------------ ------------ ------------ -------
Total managed
receivables $ 10,709,363 $ 10,531,763 $ 10,063,549 1.7%
Total serviced
receivables $ 24,360,406 $ 23,607,975 $ 19,503,445 3.2%
IO AND CMSR
ROLLFORWARD
Beginning
balance $ 206,538 $ 208,277 $ 271,876
Retained IO on
sales, net 33,819 18,663 41,036
Hedge impact (2,913) (1,918) (20,819)
Interest income 21,409 20,346 7,970
Cash received (36,552) (38,830) (42,966)
Additional
reserves (234,200) -- (10,000)
Other, net -- -- (26)
------------ ------------ ------------
Subtotal (11,899) 206,538 247,071
------------ ------------ ------------
Reclass of IO
reserves to
subordinated
trust assets 97,171 -- --
------------ ------------ ------------
Ending balance $ 85,272 $ 206,538 $ 247,071
------------ ------------ ------------
Advanta Corp.
Highlights (continued)
(in thousands, except per share data)
Three Months Ended
-------------------------------------------
Percent
Change
From
June 30, March 31, June 30, Prior
2000 2000 1999 Quarter
--------- --------- --------- ---------
EARNINGS
--------
As a % of
average managed
receivables:
Operating
expenses 3.37% 3.45% 3.25% -2.3%
Charge-offs:
New
methodology
(a) 2.69
Prior
methodology 1.86 1.84 1.46 1.1
Efficiency ratio 62.01 60.81 66.46 2.0
Basic earnings
(loss) per
common share $ (7.64) $ 0.68 $ 0.49 N/M
Diluted earnings
(loss) per
common share $ (7.64) $ 0.67 $ 0.49 N/M
Return on
average common
equity (142.13)% 11.37% 8.94% N/M
COMMON STOCK DATA
-----------------
Weighted average
common shares
used to
compute:
Basic earnings
per common
share 25,232 24,785 23,163 1.8%
Diluted earnings
per common share 25,232 25,384 23,373 -0.6
Ending shares
outstanding 27,237 27,280 25,445 -0.2
Stock price:
Class A
High $ 21.000 $ 21.875 $ 18.250 -4.0
Low 10.875 16.875 9.625 -35.6
Closing 12.188 20.313 18.063 -40.0
Class B
High 15.125 15.500 14.750 -2.4
Low 7.750 11.500 7.594 -32.6
Closing 8.500 14.484 13.563 -41.3
Cash dividends
declared
Class A $ 0.063 $ 0.063 $ 0.063 0.0
Class B 0.076 0.076 0.076 0.0
Book value per
common share $ 16.08 $ 23.68 $ 22.39(b) -32.1
(a) Beginning in the second quarter of 2000, charge-off and delinquency delinquency Criminal behaviour carried out by a juvenile. Young males make up the bulk of the delinquent population (about 80% in the U.S.) in all countries in which the behaviour is reported. statistics reflect the adoption of new charge-off policies for mortgage loans and leases. Mortgage loans are generally charged-off at the earlier of foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. or 180 days delinquent. The previous policy was the earlier of foreclosure or 12 months delinquent. Leases are generally charged-off at 121 days delinquent, however the timing of the delinquency measurement was changed from mid-month to month end in the second quarter of 2000. Cumulative catch-up catch-up n. 1. An approach or strategy intended to overcome a disadvantage or lead: The competition will be playing catch-up for the rest of the season. 2. adjustments included in second quarter charge-off amounts are not annualized when calculating the annualized charge-off rate under the new methodologies. (b) Assumes conversion of the Class B Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. for periods prior to September 1999. -Statistical Supplement Available Upon Request- |
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