1
SUBJECT TO REVISION
SERIES TERM SHEET DATED OCTOBER 18, 1996
ADVANTA CREDIT CARD MASTER TRUST II
$432,500,000 CLASS A FLOATING RATE ASSET BACKED CERTIFICATES, SERIES 1996-E
$27,500,000 CLASS B FLOATING RATE ASSET BACKED CERTIFICATES, SERIES 1996-E
ADVANTA NATIONAL BANK USA
SELLER AND SERVICER
ADVANTA NATIONAL BANK
SELLER
------------------------
THE CLASS A FLOATING RATE ASSET BACKED CERTIFICATES, SERIES 1996-E (THE
"CLASS A CERTIFICATES") AND THE CLASS B FLOATING RATE ASSET BACKED CERTIFICATES,
SERIES 1996-E (THE "CLASS B CERTIFICATES" AND, TOGETHER WITH THE CLASS A
CERTIFICATES, THE "CERTIFICATES") REPRESENT INTERESTS IN THE ADVANTA CREDIT CARD
MASTER TRUST II (THE "TRUST") AND DO NOT REPRESENT INTERESTS IN OR OBLIGATIONS
OF ADVANTA CORP., ADVANTA NATIONAL BANK USA ("AUS"), ADVANTA NATIONAL BANK
("ANB" AND, TOGETHER WITH AUS, THE "BANKS") OR ANY AFFILIATE THEREOF. A
CERTIFICATE IS NOT A DEPOSIT AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE
CORPORATION (THE "FDIC"). THE RECEIVABLES ARE NOT INSURED OR GUARANTEED BY THE
FDIC OR ANY OTHER GOVERNMENTAL AGENCY OR INSTRUMENTALITY.
THIS SERIES TERM SHEET CONTAINS STRUCTURAL AND COLLATERAL INFORMATION ABOUT
THE CERTIFICATES, HOWEVER, THIS SERIES TERM SHEET DOES NOT CONTAIN COMPLETE
INFORMATION ABOUT THE OFFERING OF THE CERTIFICATES. THE INFORMATION PROVIDED
HEREIN IS PRELIMINARY AND WILL BE SUPERSEDED BY THE INFORMATION CONTAINED IN
THE PROSPECTUS SUPPLEMENT AND THE PROSPECTUS. PURCHASERS ARE URGED TO READ BOTH
THE PROSPECTUS SUPPLEMENT AND THE PROSPECTUS.
THIS SERIES TERM SHEET SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE
SOLICITATION OF AN OFFER TO BUY, NOR SHALL THERE BE ANY SALE OF THESE SECURITIES
IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR
TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH STATE.
SALES OF THE CERTIFICATES MAY NOT BE CONSUMMATED UNLESS THE PURCHASER HAS
RECEIVED BOTH THE PROSPECTUS SUPPLEMENT AND THE PROSPECTUS.
------------------------
UNDERWRITERS OF THE CLASS A CERTIFICATES
MERRILL LYNCH & CO. SALOMON BROTHERS INC
J.P. MORGAN & CO. UBS SECURITIES
BEAR, STEARNS & CO. INC. LEHMAN BROTHERS
------------------------
UNDERWRITER OF THE CLASS B CERTIFICATES
MERRILL LYNCH & CO.
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This Series Term Sheet will be superseded in its entirety by the
information appearing in the Prospectus Supplement, the Prospectus and the
Series 1996-E Supplement referred to below.
TRUST......................... The ADVANTA Credit Card Master Trust II (the
"Trust"). The property of the Trust includes
and will include a portfolio of receivables
(the "Receivables") generated or to be
generated from time to time under designated
MasterCard* and VISA* credit card accounts or
other consumer revolving credit card accounts
(the "Accounts" and, together with the
Receivables, the "Trust Portfolio") selected
from the portfolio of consumer revolving
credit card accounts owned by the Banks or
affiliates of the Banks (the "Advanta
Consumer Credit Card Portfolio"), all monies
due in payment of the Receivables, and
certain other property.
THE CERTIFICATES AND THE
COLLATERAL INTEREST........... The Class A Floating Rate Asset Backed
Certificates, Series 1996-E (the "Class A
Certificates") and the Class B Floating Rate
Asset Backed Certificates, Series 1996-E (the
"Class B Certificates," together with the
Class A Certificates, the "Certificates")
will represent a specified undivided interest
in the assets of the Trust allocated to the
Certificates (the "Investor Interest"). The
term "Class A Certificateholders" refers to
holders of the Class A Certificates, the term
"Class B Certificateholders" refers to
holders of the Class B Certificates, the term
"Certificateholders" refers to holders of the
Certificates, and the term "Series" refers to
any series of certificates issued by the
Trust, including the series ("Series 1996-E")
of which the Certificates form a part. The
Certificates will be issued pursuant to the
Amended and Restated Pooling and Servicing
Agreement dated as of December 1, 1993, as
amended and restated as of May 23, 1994, and
as amended by Amendment Number 1 dated as of
July 1, 1994, between Advanta National Bank
USA (formerly known as Colonial National Bank
USA) ("AUS"), as seller (in such capacity, a
"Seller") and servicer (in such capacity, the
"Servicer"), and Bankers Trust Company, as
trustee (the "Trustee"), as further amended
by Amendment Number 2 dated as of October 6,
1995 among AUS, as Seller and Servicer,
Advanta National Bank ("ANB" and, together
with AUS, the "Banks") as seller (in such
capacity, a "Seller" and together with AUS,
the "Sellers") and the Trustee (the "Master
Pooling and Servicing Agreement") and the
Series 1996-E Supplement thereto (the
"Supplement" and, together with the Master
Pooling and Servicing Agreement, the "Pooling
and Servicing Agreement" (unless the context
otherwise requires)). In addition, an
undivided interest in the Trust (the
"Collateral Interest") will be issued
concurrently with the issuance of the
Certificates as part of this Series 1996-E in
an initial amount of $40,000,000 (the
"Collateral Initial Investor Amount"). The
holder of the Collateral Interest is referred
to as the "Collateral Interest Holder."
The Trust's assets will be allocated among the
Investor Interest, the Collateral Interest,
the interests of the holders of other Series
and the interest of the holders of the seller
certificates (the "Sellers' Interest"). The
aggregate amount of Principal
- ---------------
* MasterCard and VISA are registered trademarks of MasterCard International
Incorporated and VISA USA, Inc., respectively.
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Receivables and amounts, if any, on deposit
in a Trust account maintained pursuant to the
Pooling and Servicing Agreement (the "Excess
Funding Account") allocated to the
Certificateholders and the Collateral
Interest (the "Invested Amount") will be
$450,000,000 (the "Initial Invested Amount")
on the date of the initial issuance of the
Certificates (the "Closing Date"). The
Invested Amount is subject to increase during
the Funding Period to the extent amounts are
withdrawn from the Pre-Funding Account and
paid to the Sellers in connection with an
increase in the amount of principal
Receivables in the Trust. The aggregate
amount of principal Receivables and amounts,
if any, on deposit in the Excess Funding
Account allocated to the Class A
Certificateholders (the "Class A Invested
Amount") will be $389,250,000 on the Closing
Date (the "Class A Initial Invested Amount").
The aggregate amount of principal Receivables
and amounts, if any, on deposit in the Excess
Funding Account allocated to the Class B
Certificateholders (the "Class B Invested
Amount") will be $24,750,000 on the Closing
Date (the "Class B Initial Invested Amount").
The aggregate amount of principal Receivables
and amounts, if any, on deposit in the Excess
Funding Account allocated to the Collateral
Interest (the "Collateral Invested Amount")
will be $36,000,000 on the Closing Date (the
"Collateral Initial Invested Amount"). During
the Funding Period, the Class A Invested
Amount, the Class B Invested Amount and the
Collateral Invested Amount may increase under
certain conditions as the Sellers' Interest
is increased until the Class A Invested
Amount is equal to $432,500,000, the Class B
Invested Amount is equal to $27,500,000 and
the Collateral Invested Amount is equal to
$40,000,000.
RECEIVABLES................... The aggregate amount of principal Receivables
and finance charge Receivables in the
Accounts as of September 30, 1996 equaled
$8,711,266,930 and $114,207,644,
respectively.
INTEREST...................... Class A Certificate Rate: One-month LIBOR plus
%, provided that the rate for the
initial Interest Period will be determined by
reference to a straight-line interpolation
(based on the actual number of days in the
initial Interest Period) between one-month
and two-month LIBOR.
Class B Certificate Rate: One-month LIBOR plus
%, provided that the rate for the
initial Interest Period will be determined by
reference to a straight-line interpolation
(based on the actual number of days in the
initial Interest Period) between one-month
and two-month LIBOR.
Interest on the Certificates will be
distributed on the 15th day of each month or,
if such day is not a Business Day, on the
next succeeding Business Day (each, a
"Distribution Date"), commencing December 16,
1996, in an amount equal to the product of
(i) (a) the actual number of days in the
related Interest Period divided by 360, times
(b) the Class A Certificate Rate or Class B
Certificate Rate, as applicable, and (ii) the
outstanding principal amount of the Class A
Certificates or the outstanding principal
amount of the Class B Certificates, as
applicable, as of the preceding Record Date
(or, in the case of the December 1996
Distribution Date, as of the Closing Date).
"LIBOR" means the London interbank offered
quotations for one-month United States dollar
deposits prevailing on the related date that
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LIBOR is determined, provided that the rate
for the initial Interest Period will be
determined by reference to a straight-line
interpolation (based on the actual number of
days in the initial Interest Period) between
one-month and two-month LIBOR. The Trustee
will determine LIBOR on October 30, 1996 for
the period from the Closing Date through
December 15, 1996 and, for each Interest
Period thereafter, on the second Business Day
prior to every Distribution Date commencing
with the December 1996 Distribution Date. The
term "Interest Period" means, with respect to
any Distribution Date, the period from the
previous Distribution Date through the day
preceding such Distribution Date, except that
the initial Interest Period will be the
period from the Closing Date through December
15, 1996, the day preceding the initial
Distribution Date. The term "Business Day"
means any day other than a Saturday, Sunday
or a day on which banking institutions in New
York, New York, Claymont, Delaware, or
Philadelphia, Pennsylvania (or, with respect
to the determination of LIBOR, London,
England) or any other state in which the
principal executive offices of AUS, ANB or
any Additional Seller are located, are
authorized or obligated by law, executive
order or governmental decree to be closed.
THE CASH COLLATERAL ACCOUNT... A cash collateral account (the "Cash Collateral
Account") will be held in the name of the
Trustee for the benefit of the
Certificateholders and the Collateral
Interest Holder. The Cash Collateral Account
will have a beginning balance of $10,000,000
which may be increased (i) under certain
circumstances, and subject to certain
conditions described herein, in connection
with the application of collections of
principal Receivables to decrease the
Collateral Invested Amount and (ii) to the
extent certain collections allocable to
Series 1996-E are required to be deposited
therein. On each Distribution Date, the
amount available to be withdrawn from the
Cash Collateral Account to make payments with
respect to the Certificates (the "Available
Cash Collateral Amount") will be equal to the
least of (i) the amount on deposit in the
Cash Collateral Account, (ii) the Required
Enhancement Amount and (iii) the Invested
Amount.
AMOUNTS AVAILABLE AS
ENHANCEMENT................... On each Distribution Date, the amount of
enhancement (the "Enhancement") available to
the Certificateholders will equal the lesser
of (i) the sum of the Collateral Invested
Amount plus the Pre-Funded Amount allocable
to the Collateral Interest and the amount, if
any, on deposit in the Cash Collateral
Account (the "Available Enhancement Amount")
and (ii) the Required Enhancement Amount. The
"Required Enhancement Amount" with respect to
any Distribution Date means, subject to
certain limitations more fully described
herein, the greater of (i) the product of (a)
the sum of (I) the sum of the Class A
Invested Amount and the Pre-Funded Amount
allocable to the Class A Certificates and
(II) the sum of the Class B Invested Amount
and the Pre-Funded Amount allocable to the
Class B Certificates, each as of such
Distribution Date after taking into account
distributions made on such Distribution Date,
minus the amount of funds on deposit in the
Cash Collateral Account after taking into
account all deposits and withdrawals on such
Distribution Date, and (b) a fraction, the
numerator of which is 10% and the denominator
of which is the excess of 100% over 10% and
(ii) the sum of (A) the product of (I)
$500,000,000, (II) 1% and (III) a fraction
the
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numerator of which is equal to the Available
Cash Collateral Amount as of the immediately
preceding Distribution Date and the
denominator of which is the Total Enhancement
for such Distribution Date and (B) the
product of (I) $500,000,000, (II) 3% and
(III) a fraction the numerator of which is
equal to the Collateral Invested Amount as of
the immediately preceding Distribution Date
and the denominator of which is the Total
Enhancement for such Distribution Date,
subject to certain limitations. "Total
Enhancement" with respect to any Distribution
Date means the sum of the Available Cash
Collateral Amount and the Collateral Invested
Amount plus the Pre-Funded Amount allocable
to the Collateral Interest as of the
immediately preceding Distribution Date.
FUNDING PERIOD................ During the period from and including the
Closing Date to but excluding the earlier of
(i) the commencement of the rapid
amortization period, (ii) the date on which
the Invested Amount first equals $500,000,000
and (iii) April 30, 1997 (the "Funding
Period"), the Pre-Funded Amount will be
maintained in a trust account to be
established with the Trustee (the
"Pre-Funding Account"). The "Pre-Funded
Amount" means the principal amount on deposit
in the Pre-Funding Account, which initially
will equal $50,000,000. Funds on deposit in
the Pre-Funding Account will be invested by
the Trustee in certain eligible investments.
During the Funding Period, funds on deposit in
the Pre-Funding Account will be withdrawn on
a monthly basis to the extent of any
increases in the Invested Amount as a result
of an increase in the amount of principal
Receivables in the Trust; provided, however,
that the Invested Amount will in no event
exceed $500,000,000 or increase by an amount
in excess of the Pre-Funded Amount
immediately prior to giving effect to such
increase. Should the Pre-Funded Amount be
greater than zero at the end of the Funding
Period, the amounts remaining on deposit in
the Pre-Funding Account will be payable pro
rata to the Class A Certificateholders, the
Class B Certificateholders and the Collateral
Interest Holder on the next succeeding
Distribution Date and result in a reduction
in the outstanding principal balance of the
Certificates and the Collateral Interest.
PRINCIPAL..................... The principal of the Class A Certificates and
the Class B Certificates is scheduled to be
paid on the Class A Expected Final Payment
Date and the Class B Expected Final Payment
Date, respectively, but may be paid earlier
or later, or monthly on each Distribution
Date, under certain circumstances.
CLASS A EXPECTED FINAL
DISTRIBUTION DATE........... The November 2001 Distribution Date.
CLASS B EXPECTED FINAL
DISTRIBUTION DATE........... The December 2001 Distribution Date.
SUBORDINATION OF THE CLASS B
CERTIFICATES AND THE
COLLATERAL INTEREST......... The Class B Certificates will be subordinated
to the extent necessary to fund certain
payments with respect to the Class A
Certificates. In addition, the Collateral
Interest will be subordinated to the extent
necessary to fund certain payments with
respect to the Certificates. If the
Collateral Invested Amount and the amount on
deposit in the Cash Collateral Account are
reduced to zero, the Class B
Certificateholders will bear directly
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the credit and other risks associated with
their undivided interest in the Trust. To the
extent the Class B Invested Amount is
reduced, and is not reinstated, the amount of
principal distributable to the Class B
Certificateholders will be reduced.
ERISA CONSIDERATIONS.......... Under the regulations issued by the Department
of Labor, the Trust's assets would not be
deemed "plan assets" of any employee benefit
plan holding interests in the Class A
Certificates if certain conditions are met,
such that the Class A Certificates would
constitute "publicly-offered securities,"
including that interests in the Class A
Certificates be held by at least 100 persons
independent of the Sellers and each other
upon completion of the public offering being
made hereby. The Class A underwriters expect,
although no assurance can be given, that
interests in the Class A Certificates will be
held by at least 100 such persons, and it is
anticipated that the other conditions of the
"publicly-offered security" exception
contained in the regulations will be met. If
the Trust's assets were deemed to be "plan
assets" of such a plan, there is uncertainty
as to whether existing exemptions from the
"prohibited transaction" rules of the
Employee Retirement Income Security Act of
1974, as amended ("ERISA"), would apply to
all transactions involving the Trust's
assets. Accordingly, employee benefit plans
contemplating purchasing interests in the
Class A Certificates should consult their
counsel before making a purchase.
The Class B underwriter currently does not
expect that the Class B Certificates will be
held by at least 100 such persons and,
therefore, does not expect that such Class B
Certificates will qualify as publicly-offered
securities under the regulation referred to
in the preceding paragraph. Accordingly, the
Class B Certificates may not be acquired by
(a) any employee benefit plan that is subject
to ERISA, (b) any plan or other arrangement
(including an individual retirement account
or Keogh plan) that is subject to Section
4975 of the Code, or (c) any entity whose
underlying assets include "plan assets" under
the regulation by reason of any such plan's
investment in the entity. By its acceptance
of a Class B Certificate, each Class B
Certificateholder will be deemed to have
represented and warranted that it is not
subject to the foregoing limitation.
CERTIFICATE RATINGS........... It is a condition to the issuance of the Class
A Certificates that they be rated in the
highest rating category by at least one
nationally recognized rating agency.
It is a condition to the issuance of the Class
B Certificates that they be rated in one of
the three highest rating categories by at
least one nationally recognized rating
agency.
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COMPOSITION AND HISTORICAL PERFORMANCE
OF THE ADVANTA CONSUMER CREDIT CARD PORTFOLIO
DELINQUENCIES AND LOSS EXPERIENCE
The following tables set forth the delinquency and loss experience for each
of the periods shown for the Advanta Consumer Credit Card Portfolio. As of
September 30, 1996, the Advanta Consumer Credit Card Portfolio included
receivables from accounts the receivables of which were transferred to trusts
similar to the Trust in an aggregate amount equal to $2.14 billion ("Prior
Securitizations"). As of September 30, 1996, the Advanta Consumer Credit Card
Portfolio also included approximately $8,825 million of receivables from
accounts the receivables of which were transferred by the Banks to the Trust.
Additional Accounts have been designated for inclusion in the Trust from time to
time (the "Master Trust II Sales"). The Accounts in the Trust Portfolio have
been selected from accounts in the Advanta Consumer Credit Card Portfolio based
on certain eligibility criteria specified in the Pooling and Servicing
Agreement. There can be no assurance that the delinquency and loss experience
for the Receivables will be similar to the historical experience set forth
below.
DELINQUENCY EXPERIENCE
ADVANTA CONSUMER CREDIT CARD PORTFOLIO
(DOLLARS IN THOUSANDS)
AS OF
SEPTEMBER AS OF DECEMBER 31,
30, ------------------------------------
1996 1995 1994 1993
----------- ---------- ---------- ----------
Receivables Outstanding(1)(2).................. $12,708,603 $9,984,291 $6,535,664 $3,922,086
Receivables Contractually Delinquent as a
Percentage of Receivables Outstanding:
30-59 days................................... 1.47% 1.12% 0.89% 0.96%
60-89 days................................... 0.88 0.57 0.44 0.54
90 or more days.............................. 1.55 0.95 0.71 0.89
----------- ---------- ---------- ----------
Total................................ 3.90% 2.64% 2.04% 2.39%
=========== ========== ========== ==========
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(1) Includes the receivables transferred in connection with the Prior
Securitizations and Master Trust II Sales.
(2) Receivables Outstanding consists of all amounts due from cardholders as
posted to the accounts.
LOSS EXPERIENCE
ADVANTA CONSUMER CREDIT CARD PORTFOLIO
(DOLLARS IN THOUSANDS)
NINE MONTHS
ENDED
SEPTEMBER YEAR ENDED DECEMBER 31,
30, ------------------------------------
1996 1995 1994 1993
----------- ---------- ---------- ----------
Average Receivables Outstanding(1)(2)...... $11,968,353 $7,677,833 $4,675,005 $3,012,060
Gross Losses(3)............................ 317,555 205,715 126,557 115,835
Recoveries................................. 11,760 12,874 11,339 9,869
Net Losses................................. 305,795 192,841 115,218 105,966
Net Losses as a Percentage of Average
Receivables Outstanding.................. 3.41%(4)(5) 2.51% 2.46% 3.52%
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(1) Includes the receivables transferred in connection with the Prior
Securitizations and Master Trust II Sales.
(2) Average Receivables Outstanding is the sum of receivables outstanding at the
beginning and end of each month during the period indicated, divided by
twice the number of months in the period indicated.
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(3) Total Gross Losses are presented net of adjustments made pursuant to AUS's
normal servicing procedures, including removal of incorrect or disputed
finance charges and reversal of annual cardholder fees on cardholder
accounts which have been closed. Losses do not include accrued finance
charges that have been written off or fraud losses.
(4) Annualized.
(5) In August 1996 the Banks adopted a new charge-off methodology related to
bankrupt credit card accounts.
COMPOSITION OF THE ACCOUNTS IN THE TRUST PORTFOLIO
The Receivables (including those which will be conveyed to the trust during
the period from this Series Term Sheet through the Closing Date) as of September
30, 1996 totalled $9,325,586,348 in 4,262,713 accounts. The Accounts had an
average credit limit of $6,068. The percentage of the aggregate total Receivable
balance to the aggregate total credit limit was 36.1%. The average age of the
Accounts was approximately 19.2 months.
The following tables summarize the Trust Portfolio (including receivables
which will be conveyed to the trust during the period from this Series Term
Sheet through the Closing Date) by various criteria as of the close of business
on September 30, 1996. Because the future composition of the Trust Portfolio may
change over time, these tables are not necessarily indicative of future results.
COMPOSITION BY ACCOUNT BALANCE
TRUST PORTFOLIO
PERCENTAGE
OF TOTAL PERCENTAGE
NUMBER OF NUMBER OF OF TOTAL
ACCOUNT BALANCE ACCOUNTS ACCOUNTS RECEIVABLES RECEIVABLES
- ------------------------------------------ --------- --------- -------------- -----------
Credit balance............................ 74,447 1.7% $ (6,435,381) -0.1%
$0.00..................................... 1,309,251 30.7 0 0.0
$0.01 to $1,000.00........................ 679,668 15.9 248,815,744 2.7
$1,000.01 to $2,500.00.................... 570,687 13.4 999,912,641 10.7
$2,500.01 to $5,000.00.................... 946,064 22.2 3,590,423,675 38.5
$5,000.01 to $7,500.00.................... 538,210 12.7 3,260,150,317 35.0
Over $7,500.00............................ 144,386 3.4 1,232,719,352 13.2
--------- ----- -------------- -----
Total..................................... 4,262,713 100.0% $9,325,586,348 100.0%
========= ===== ============== =====
COMPOSITION BY CREDIT LIMIT
TRUST PORTFOLIO
PERCENTAGE
OF TOTAL PERCENTAGE
NUMBER OF NUMBER OF OF TOTAL
CREDIT LIMIT BALANCE ACCOUNTS ACCOUNTS RECEIVABLES RECEIVABLES
- ------------------------------------------ --------- --------- -------------- -----------
$0.00 to $1,000.00........................ 121,466 2.8% $ 15,139,334 0.2%
$1,000.01 to $2,500.00.................... 310,682 7.3 298,717,937 3.2
$2,500.01 to $5,000.00.................... 1,156,437 27.1 2,276,798,854 24.4
$5,000.01 to $7,500.00.................... 1,684,712 39.6 3,895,254,066 41.8
Over $7,500.00............................ 989,416 23.2 2,839,676,157 30.4
--------- ----- -------------- -----
Total..................................... 4,262,713 100.0% $9,325,586,348 100.0%
========= ===== ============== =====
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COMPOSITION BY PERIOD OF DELINQUENCY
TRUST PORTFOLIO
PERCENTAGE
OF TOTAL PERCENTAGE
PERIOD OF DELINQUENCY NUMBER OF NUMBER OF OF TOTAL
(DAYS CONTRACTUALLY DELINQUENT) ACCOUNTS ACCOUNTS RECEIVABLES RECEIVABLES
- ------------------------------------------ --------- ---------- -------------- -----------
Not Delinquent............................ 4,018,495 94.3% $8,420,384,096 90.3%
1 to 29 days.............................. 157,136 3.6 562,828,520 6.0
30 to 59 days............................. 34,916 0.8 130,730,692 1.4
60 to 89 days............................. 19,486 0.5 76,663,635 0.8
90 to 119 days............................ 12,931 0.3 52,128,344 0.6
120 to 149 days........................... 9,409 0.2 38,457,590 0.4
150 to 179 days........................... 8,037 0.2 34,016,485 0.4
180 or more............................... 2,303 0.1 10,376,986 0.1
--------- ----- -------------- -----
Total..................................... 4,262,713 100.0% $9,325,586,348 100.0%
========= ===== ============== =====
COMPOSITION BY ACCOUNT AGE
TRUST PORTFOLIO
PERCENTAGE
OF TOTAL PERCENTAGE
AGE NUMBER OF NUMBER OF OF TOTAL
(IN MONTHS) ACCOUNTS ACCOUNTS RECEIVABLES RECEIVABLES
- ------------------------------------------ --------- --------- -------------- -----------
0 to 6 months............................. 432,117 10.1% $1,484,574,186 15.9%
Over 6 to 12 months....................... 1,143,143 26.8 2,868,551,215 30.8
Over 12 to 24 months...................... 1,598,608 37.6 3,062,848,572 32.8
Over 24 to 36 months...................... 692,071 16.2 1,352,776,238 14.5
Over 36 to 48 months...................... 38,207 0.9 61,934,351 0.7
Over 48 to 60 months...................... 14,651 0.3 18,261,146 0.2
Over 60 to 84 months...................... 206,788 4.9 277,072,348 3.0
Over 84 months............................ 137,128 3.2 199,568,292 2.1
--------- ----- -------------- -----
Total..................................... 4,262,713 100.0% $9,325,586,348 100.0%
========= ===== ============== =====
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GEOGRAPHIC DISTRIBUTION OF ACCOUNTS AND RECEIVABLES
TRUST PORTFOLIO*
PERCENTAGE
NUMBER OF TOTAL PERCENTAGE
OF NUMBER OF OF TOTAL
STATE ACCOUNTS ACCOUNTS RECEIVABLES RECEIVABLES
- ------------------------------------------ --------- --------- -------------- -----------
Alabama................................... 50,888 1.2% $ 106,119,590 1.1%
Alaska.................................... 7,005 0.2 18,488,877 0.2
Arizona................................... 60,282 1.4 138,172,961 1.5
Arkansas.................................. 35,969 0.8 84,198,031 0.9
California................................ 618,967 14.5 1,451,439,634 15.6
Colorado.................................. 75,256 1.8 161,185,927 1.7
Connecticut............................... 58,075 1.4 126,560,172 1.4
Delaware.................................. 14,501 0.3 31,187,916 0.3
District of Columbia...................... 8,628 0.2 19,038,432 0.2
Florida................................... 258,185 6.1 555,142,182 6.0
Georgia................................... 92,086 2.2 201,617,426 2.2
Hawaii.................................... 15,018 0.4 34,319,635 0.4
Idaho..................................... 18,370 0.4 39,198,575 0.4
Illinois.................................. 178,983 4.2 365,295,049 3.9
Indiana................................... 91,836 2.2 192,556,499 2.1
Iowa...................................... 48,535 1.1 94,687,274 1.0
Kansas.................................... 41,910 1.0 98,365,908 1.1
Kentucky.................................. 41,949 1.0 84,786,742 0.9
Louisiana................................. 54,881 1.3 111,677,837 1.2
Maine..................................... 960 0.0 2,302,108 0.0
Maryland.................................. 93,716 2.2 207,363,629 2.2
Massachusetts............................. 115,256 2.7 243,898,067 2.6
Michigan.................................. 146,193 3.4 327,829,588 3.5
Minnesota................................. 93,033 2.2 187,058,789 2.0
Mississippi............................... 27,139 0.6 55,849,656 0.6
Missouri.................................. 82,963 1.9 182,300,561 2.0
Montana................................... 12,897 0.3 26,214,504 0.3
Nebraska.................................. 25,062 0.6 51,936,240 0.6
Nevada.................................... 31,441 0.7 76,808,723 0.8
New Hampshire............................. 19,531 0.5 43,359,302 0.5
New Jersey................................ 160,101 3.8 341,164,314 3.7
New Mexico................................ 22,438 0.5 49,439,163 0.5
New York.................................. 343,442 8.1 776,727,179 8.3
North Carolina............................ 86,403 2.0 177,170,932 1.9
North Dakota.............................. 9,451 0.2 18,888,705 0.2
Ohio...................................... 166,456 3.9 348,386,195 3.7
Oklahoma.................................. 47,012 1.1 109,747,317 1.2
Oregon.................................... 52,617 1.2 112,128,540 1.2
Pennsylvania.............................. 184,562 4.3 363,705,980 3.9
Rhode Island.............................. 18,199 0.4 39,399,461 0.4
South Carolina............................ 41,596 1.0 85,755,393 0.9
South Dakota.............................. 9,704 0.2 19,752,368 0.2
Tennessee................................. 75,922 1.8 155,991,581 1.7
Texas..................................... 273,439 6.4 656,886,526 7.0
Utah...................................... 26,456 0.6 52,587,803 0.6
Vermont................................... 8,927 0.2 18,816,010 0.2
Virginia.................................. 101,743 2.4 218,735,423 2.3
Washington................................ 91,414 2.1 210,508,967 2.2
West Virginia............................. 19,724 0.5 40,360,031 0.4
Wisconsin................................. 89,204 2.1 178,601,185 1.9
Wyoming................................... 7,524 0.2 16,688,238 0.2
All Others................................ 6,864 0.2 15,185,203 0.2
--------- ----- -------------- -----
Total..................................... 4,262,713 100.0% $9,325,586,348 100.0%
========= ===== ============== =====
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* All data as of September 30, 1996.
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SUMMARY OF MONTHLY PAYMENT RATES
The following table sets forth the highest and lowest cardholder monthly
payment rates for the Advanta Consumer Credit Card Portfolio during any month in
the periods shown and the average of the cardholder monthly payment rates for
all months during the period shown, in each case calculated as a percentage of
total opening monthly account balances during the periods shown. Payments shown
in the table include amounts which would be deemed payments of principal
Receivables and finance charge Receivables with respect to the Accounts.
MONTHLY PAYMENT RATES
ADVANTA CONSUMER CREDIT CARD PORTFOLIO
NINE MONTHS
ENDED YEAR ENDED DECEMBER 31,
SEPTEMBER 30, -------------------------
1996 1995 1994 1993
------------- ----- ----- -----
Lowest................................................. 8.52% 9.29% 11.55% 13.22%
Highest................................................ 10.23% 12.42% 14.25% 15.57%
Monthly Average........................................ 9.36% 10.73% 12.98% 14.39%
RECEIVABLE YIELD CONSIDERATIONS
The yield on the Advanta Consumer Credit Card Portfolio for the nine months
ended September 30, 1996 and for each of the three years in the period ended
December 31, 1995 is set forth in the following table. The historical yield
figures in the table are calculated on an accrual basis. Collections on the
Receivables will be on a cash basis and may not reflect the historical yield
experience in the table. For example, during periods of increasing
delinquencies, accrual yields may exceed cash yields as amounts collected on
credit card receivables lag behind amounts accrued and billed to cardholders.
Conversely, as delinquencies decrease, cash yields may exceed accrual yields as
amounts collected in a current period may include amounts accrued during prior
periods. Yield on both an accrual and a cash basis will be affected by numerous
factors, including the finance charges on the Receivables, the amount of the
annual cardholder fee and other fees and charges, changes in the delinquency
rate on the Receivables and the percentage of cardholders who pay their balances
in full each month and do not incur finance charges. There can be no assurance
that the revenue from finance charges and fees for the Receivables will be
similar to the historical experience set forth below. See "Risk Factors" in the
Prospectus.
REVENUE FROM FINANCE CHARGES AND FEES
ADVANTA CONSUMER CREDIT CARD PORTFOLIO(1)
NINE MONTHS
ENDED YEAR ENDED DECEMBER 31,
SEPTEMBER 30, -------------------------------
1996(2) 1995(2) 1994(2) 1993(2)
------------- ------- ------- -------
Average Monthly Accrued Fees and
Charges(3)(4).................................... $ 31.21 $27.03 $22.98 $21.62
Average Account Balance(5)......................... 2,928 2,435 2,044 1,761
Yield From Fees and Charges(3)(4).................. 12.79%(6) 13.32% 13.49% 14.73%
- ---------------
(1) The figures shown do not include revenue attributable to Interchange.
(2) Includes the receivables transferred in connection with the Prior
Securitizations and Master Trust II Sales.
(3) Fees and Charges are comprised of finance charges, annual cardholder fees
and certain other service charges.
(4) Average Monthly Accrued Fees and Charges and Yield from Fees and Charges are
presented net of adjustments made pursuant to AUS's normal servicing
procedures, including removal of incorrect or disputed finance charges and
reversal of finance charges accrued on charged off accounts.
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(5) Average Account Balance includes purchases, cash advances and billed and
unpaid finance and other charges, and is calculated based on the average of
the opening monthly account balances for accounts with balances during the
periods shown.
(6) Annualized.
The yield for the Advanta Consumer Credit Card Portfolio shown in the above
table is comprised of three components: finance charges, annual cardholder fees
and other service charges, such as late charges. The yield related to annual
cardholder fees (on those accounts which assess such fees) and other service
charges varies with the type and volume of activity in, and the balance of each
account. The Banks currently assess annual cardholder fees of $10 to $50 for
certain of its credit card accounts. Most accounts originated since March 1987
do not carry an annual cardholder fee. As account balances increase, an annual
cardholder fee, which remains constant, represents a smaller percentage of the
aggregate account balance.
The decline in portfolio yield demonstrated in the above table is the
result of the Banks' focus on the direct solicitation of low rate, prime rate
and London interbank offered rate based, no annual fee credit card accounts and
the fluctuations in the prime rate during the period shown. Certain of the most
recently originated credit card accounts have a lower introductory rate which
might have the effect of lowering finance charge income on such accounts below
the level indicated in the above table. The Trust Portfolio contains a greater
proportion of receivables arising under such accounts than does the Advanta
Consumer Credit Card Portfolio.
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