SPRING HOUSE, PA. - Advanta Corp. Monday announced that its bank subsidiary, Advanta National Bank, signed an agreement with the Comptroller of the Currency, which could result in writedowns of more than $214 million in the second quarter.

The OCC had expressed serious concern over a range of Advanta National Bank's practices, including capital levels, credit risk, and collection.

Specifically, Advanta reported that the agreement would result in the carrying value of its contractual mortgage servicing rights being reduced by $13 million; the carrying value of its subordinated trust assets being reduced by $201 million; and its allowances for loan losses being increased by $22 million. The adjustments will be reflected in Advanta's second quarter earnings report, which will be released Wednesday.

After the announcement, Fitch reduced Advanta Corp.'s ratings from BB to B-plus on its senior debt and from B-plus to B-minus on its preferred stock. Fitch also cut Advanta National Bank's certificates of deposit and unsecured debt ratings. Advanta Corp.'s stock was down 25 cents late Monday, to $11.375.

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