million in the third quarter, including $7.9 million of income from its mortgage unit.

Net income for the corporation was off 5.3% from a year earlier.

The company last year reported $10.1 million of mortgage income in the third quarter, the last time it used gain-on-sale accounting.

Had it used the more conservative portfolio-lender accounting method at the time, it would have reported only $7.6 million in mortgage income.

Advanta said the average yield on its mortgage loans increased by 65 basis points over the second quarter, reflecting higher interest rates and a rising percentage of loans derived from direct-to-consumer channels, which typically have better yields.

The company attributed a rise in mortgage income from $5.8 million in the second quarter to expense cutting.

It also logged a $1.7 million increase in its provision for credit losses.

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