-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, XbjNiFsAqSTgykGmF6w3204YrvsRUUd6PptZiUReBVEnnEZ59Q9sD/IrSrYw0Xmp 5yDklOhgA75hKqxUlZPykg== 0000950128-94-000123.txt : 19940726 0000950128-94-000123.hdr.sgml : 19940726 ACCESSION NUMBER: 0000950128-94-000123 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940616 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19940722 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PNC BANK CORP CENTRAL INDEX KEY: 0000713676 STANDARD INDUSTRIAL CLASSIFICATION: 6021 IRS NUMBER: 251435979 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09718 FILM NUMBER: 94539736 BUSINESS ADDRESS: STREET 1: ONE PNC PLAZA STREET 2: FIFTH AVE & WOOD ST CITY: PITTSBURGH STATE: PA ZIP: 15265 BUSINESS PHONE: 4127622666 MAIL ADDRESS: STREET 1: ONE PNC PLAZA STREET 2: FIFTH AVENUE & WOOD STREET CITY: PITTSBURGH STATE: PA ZIP: 15265 FORMER COMPANY: FORMER CONFORMED NAME: PNC BANK CORP /PA/ DATE OF NAME CHANGE: 19930428 FORMER COMPANY: FORMER CONFORMED NAME: PNC FINANCIAL CORP DATE OF NAME CHANGE: 19920703 8-K 1 PNC BANK 8-K 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 June 16, 1994 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) COMMISSION FILE NUMBER 1-9718 PNC BANK CORP. (Exact name of registrant as specified in its charter) PENNSYLVANIA 25-1435979 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) ONE PNC PLAZA FIFTH AVENUE AND WOOD STREET PITTSBURGH, PENNSYLVANIA 15265 (Address of principal executive offices) (Zip Code) (412) 762-3900 (Registrant's telephone number, including area code) (Former name or former address, if changed since last report) Page 1 of 10 Exhibit Index begins on page 4 2 ITEM 5. OTHER EVENTS SECOND QUARTER 1994 FINANCIAL RESULTS On July 19, 1994, PNC Bank Corp. ("Corporation") reported results of operations for the three months and six months ended June 30, 1994. Excerpts from the earnings press release issued by the Corporation are attached as Exhibit 99 and incorporated herein by reference. ACQUISITION OF BLACKROCK FINANCIAL MANAGEMENT L.P. On June 16, 1994, the Corporation entered into an agreement to acquire BlackRock Financial Management L.P. ("BlackRock") for approximately $240 million in cash and notes. BlackRock is a New York-based fixed income asset management firm with approximately $23 billion of assets under management. The Corporation estimates the acquisition will increase its total discretionary assets under management to approximately $75 billion and add approximately 20 percent to the Corporation's investment management and trust revenue. The transaction is expected to close in the fourth quarter of 1994, subject to receipt of regulatory and other approvals. ACQUISITION OF FIRST EASTERN CORP. Effective at the close of business on June 17, 1994, the Corporation acquired First Eastern Corp. ("First Eastern") for approximately $330 million in cash. First Eastern had assets of approximately $2 billion and deposits of approximately $1.8 billion. The acquisition expanded the Corporation's presence in northeastern Pennsylvania, resulting in a combined network spanning an 11-county region. ACQUISITION OF MORTGAGE SERVICING PORTFOLIO On June 23, 1994, the Corporation consummated its acquisition of a $10-billion residential mortgage servicing portfolio from Associates Corp. of North America, effective May 31, 1994. The purchase price totaled approximately $117 million, of which approximately $94 million was paid on June 23, 1994. The remainder of the purchase price is expected to be paid in the fourth quarter of 1994 upon the receipt of certain consents. The acquisition increased the size of the Corporation's mortgage servicing portfolio to approximately $46 billion. The portfolio will be serviced by the Corporation's existing mortgage servicing centers. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits The exhibit listed on the Exhibit Index on page 4 of this Form 8-K is filed herewith. 2 3 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. PNC BANK CORP. (REGISTRANT) Date: July 22, 1994 By /s/ Robert L. Haunschild -------------------------- Robert L. Haunschild SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER 3 4 EXHIBIT INDEX 99 Excerpts from the earnings press release issued by the Corporation on July 19, 1994, with respect to results of operations for the three months and six months ended June 30, 1994, filed herewith. 4 EX-99 2 PNC BANK 8-K 1 Exhibit 99 PNC BANK CORP. AND SUBSIDIARIES Consolidated Financial Highlights FINANCIAL PERFORMANCE ====================================================================================================================================
Three months ended Six months ended June 30 June 30 ------------------------- ------------------------- IN THOUSANDS, EXCEPT PER SHARE DATA AND RATIOS 1994 1993 1994 1993 - - ------------------------------------------------------------------------------------------------------------------------------------ Net interest income (taxable-equivalent basis) $501,363 $466,134 $1,007,167 $929,702 Income before cumulative effect of changes in accounting principles 187,845 169,142 393,534 356,153 Net income 187,845 169,142 393,534 336,760 Earnings per common share Before cumulative effect of changes in accounting principles Primary .79 .71 1.66 1.50 Fully diluted .79 .71 1.65 1.49 Net income Primary .79 .71 1.66 1.42 Fully diluted .79 .71 1.65 1.41 Cash dividends declared per common share .32 .285 .64 .57 Average common shares outstanding Primary 237,241 236,561 236,974 236,241 Fully diluted 239,086 238,751 238,887 238,545 Net interest margin 3.58% 3.96% 3.63% 4.04% Returns before cumulative effect of changes in accounting principles Return on average total assets 1.26 1.35 1.34 1.47 Return on average common shareholders' equity 17.70 17.59 18.51 18.76 Returns based on net income Return on average total assets 1.26 1.35 1.34 1.39 Return on average common shareholders' equity 17.70 17.59 18.51 17.73 Average shareholders' equity to average total assets 7.16 7.71 7.25 7.84 Net charge-offs to average loans .35 .76 .32 .76 Provision for credit losses to net charge-offs 87.45 112.08 97.47 120.72 After-tax profit margin 25.75 25.61 26.34 23.98 Overhead ratio 57.33 52.25 56.57 52.13 ==================================================================================================================================
PERIOD-END RATIOS ==================================================================================================================================== June 30 December 31 June 30 1994 1993 1993 - - ------------------------------------------------------------------------------------------------------------------------------------ Capital Leverage 6.99% 7.85% 7.80% Common shareholders' equity to total assets 6.77 6.93 7.32 Asset quality Nonperforming loans to total loans 1.11 1.15 1.81 Nonperforming assets to total loans and foreclosed assets 1.55 1.65 2.63 Nonperforming assets to total assets .85 .89 1.25 Allowance for credit losses to total loans 2.97 2.92 3.60 Allowance for credit losses to nonperforming loans 267.09 253.12 199.57 Book value per common share As reported $18.37 $18.34 $16.84 Excluding net unrealized securities gains/losses 19.02 17.96 16.84 ===================================================================================================================================
5 2 PNC BANK CORP. AND SUBSIDIARIES Condensed Consolidated Statement of Income
==================================================================================================================================== Three months ended Six months ended June 30 June 30 ----------------------------- ----------------------------- IN THOUSANDS 1994 1993 1994 1993 - - ------------------------------------------------------------------------------------------------------------------------------------ INTEREST INCOME Loans and fees on loans $594,011 $475,335 $1,166,847 $961,554 Securities 316,647 315,936 612,455 614,433 Other 24,336 9,205 50,796 18,042 - - ------------------------------------------------------------------------------------------------------------------------------------ Total interest income 934,994 800,476 1,830,098 1,594,029 - - ------------------------------------------------------------------------------------------------------------------------------------ INTEREST EXPENSE Deposits 217,512 188,536 417,516 387,713 Borrowed funds 110,574 98,827 207,311 187,350 Notes and debentures 113,949 57,467 214,971 109,629 - - ------------------------------------------------------------------------------------------------------------------------------------ Total interest expense 442,035 344,830 839,798 684,692 - - ------------------------------------------------------------------------------------------------------------------------------------ Net interest income 492,959 455,646 990,300 909,337 Provision for credit losses 25,030 53,814 50,045 115,231 - - ------------------------------------------------------------------------------------------------------------------------------------ Net interest income less provision for credit losses 467,929 401,832 940,255 794,106 - - ------------------------------------------------------------------------------------------------------------------------------------ NONINTEREST INCOME Investment management and trust 73,494 69,093 146,461 135,366 Service charges, fees and commissions 92,205 87,904 180,041 169,349 Mortgage banking 42,658 9,082 80,363 16,976 Net securities gains (losses) (85) 6,616 30,307 111,777 Other 19,968 21,739 49,619 41,247 - - ------------------------------------------------------------------------------------------------------------------------------------ Total noninterest income 228,240 194,434 486,791 474,715 - - ------------------------------------------------------------------------------------------------------------------------------------ NONINTEREST EXPENSE Staff expense 203,972 169,936 410,871 346,340 Net occupancy and equipment 66,860 54,773 132,142 113,092 Other 147,463 120,439 302,128 272,731 - - ------------------------------------------------------------------------------------------------------------------------------------ Total noninterest expense 418,295 345,148 845,141 732,163 - - ------------------------------------------------------------------------------------------------------------------------------------ Income before income taxes and cumulative effect of changes in accounting principles 277,874 251,118 581,905 536,658 Applicable income taxes 90,029 81,976 188,371 180,505 - - ------------------------------------------------------------------------------------------------------------------------------------ Income before cumulative effect of changes in accounting principles 187,845 169,142 393,534 356,153 Cumulative effect of changes in accounting principles, net of tax benefit of $5,343 (19,393) - - ------------------------------------------------------------------------------------------------------------------------------------ Net income $187,845 $169,142 $393,534 $336,760 ====================================================================================================================================
6 3 PNC BANK CORP. AND SUBSIDIARIES Other Financial Data
NET INTEREST MARGIN ==================================================================================================================================== THREE MONTHS ENDED June 30 March 31 June 30 TAXABLE-EQUIVALENT BASIS 1994 1994 1993 - - ------------------------------------------------------------------------------------------------------------------------------------ Book-basis yield on earning assets 6.48% 6.23% 6.60% Effect of loan fees .11 .14 .13 Taxable-equivalent adjustment .06 .06 .09 - - ------------------------------------------------------------------------------------------------------------------------------------ Taxable-equivalent yield on earning assets 6.65 6.43 6.82 Rate on interest-bearing liabilities 3.90 3.69 3.83 - - ------------------------------------------------------------------------------------------------------------------------------------ Interest rate spread 2.75 2.74 2.99 Net benefit of interest rate swaps .28 .41 .38 Net benefit of noninterest-bearing funds .55 .53 .59 - - ------------------------------------------------------------------------------------------------------------------------------------ Net interest margin 3.58% 3.68% 3.96% ====================================================================================================================================
NONINTEREST INCOME ====================================================================================================================================
Three months ended Six months ended June 30 June 30 ------------------------------------ ----------------------------------- IN THOUSANDS 1994 1993 1994 1993 - - ------------------------------------------------------------------------------------------------------------------------------------ Investment management and trust Trust $49,406 $47,394 $98,805 $92,187 Mutual funds 24,088 21,699 47,656 43,179 - - ------------------------------------------------------------------------------------------------------------------------------------ Total investment management and trust 73,494 69,093 146,461 135,366 - - ------------------------------------------------------------------------------------------------------------------------------------ Service charges, fees and commissions Deposit account and corporate services 42,484 39,593 82,225 78,072 Credit card and merchant services 13,878 13,634 26,797 26,545 Brokerage 8,545 9,799 17,223 17,517 Corporate finance 10,547 9,724 21,227 18,305 Other services 16,751 15,154 32,569 28,910 - - ------------------------------------------------------------------------------------------------------------------------------------ Total service charges, fees and commissions 92,205 87,904 180,041 169,349 - - ------------------------------------------------------------------------------------------------------------------------------------ Mortgage banking Servicing 42,270 6,737 77,292 13,031 Marketing 388 2,345 3,071 3,945 - - ------------------------------------------------------------------------------------------------------------------------------------ Total mortgage banking 42,658 9,082 80,363 16,976 - - ------------------------------------------------------------------------------------------------------------------------------------ Net securities gains (losses) (85) 6,616 30,307 111,777 Other 19,968 21,739 49,619 41,247 - - ------------------------------------------------------------------------------------------------------------------------------------ Total $228,240 $194,434 $486,791 $474,715 ====================================================================================================================================
NONINTEREST EXPENSE ====================================================================================================================================
Three months ended Six months ended June 30 June 30 ------------------------------------ ----------------------------------- IN THOUSANDS 1994 1993 1994 1993 - - ------------------------------------------------------------------------------------------------------------------------------------ Compensation $164,610 $139,054 $329,402 $279,403 Employee benefits 39,362 30,882 81,469 66,937 - - ------------------------------------------------------------------------------------------------------------------------------------ Total staff expense 203,972 169,936 410,871 346,340 - - ------------------------------------------------------------------------------------------------------------------------------------ Net occupancy 34,142 28,536 66,562 58,203 Equipment 32,718 26,237 65,580 54,889 Amortization of intangible assets 18,270 4,662 37,830 15,366 Federal deposit insurance 18,163 16,467 36,339 32,932 Taxes other than income 10,782 9,781 21,878 18,610 Other 100,248 89,529 206,081 205,823 - - ------------------------------------------------------------------------------------------------------------------------------------ Total $418,295 $345,148 $845,141 $732,163 ====================================================================================================================================
7 4 PNC BANK CORP. AND SUBSIDIARIES Condensed Consolidated Balance Sheet
==================================================================================================================================== June 30 December 31 June 30 IN MILLIONS, EXCEPT SHARE DATA 1994 1993 1993 - - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Cash and due from banks $1,989 $1,817 $2,353 Short-term investments 672 856 451 Loans held for sale 804 1,392 397 Securities available for sale, fair value of $5,791 on June 30, 1993 7,236 11,388 5,679 Investment securities, fair value of $15,233, $11,716 and $18,590 15,971 11,672 18,159 Loans, net of unearned income of $218, $222 and $223 34,860 33,308 25,434 Allowance for credit losses (1,036) (972) (917) - - ------------------------------------------------------------------------------------------------------------------------------------ Net loans 33,824 32,336 24,517 - - ------------------------------------------------------------------------------------------------------------------------------------ Other 3,471 2,619 2,262 - - ------------------------------------------------------------------------------------------------------------------------------------ Total assets $63,967 $62,080 $53,818 ==================================================================================================================================== LIABILITIES Deposits Noninterest-bearing $6,257 $7,057 $6,172 Interest-bearing 26,692 26,058 22,331 - - ------------------------------------------------------------------------------------------------------------------------------------ Total deposits 32,949 33,115 28,503 - - ------------------------------------------------------------------------------------------------------------------------------------ Borrowed funds 13,402 11,662 11,511 Notes and debentures 11,437 9,585 6,333 Other 1,830 3,393 3,510 - - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 59,618 57,755 49,857 - - ------------------------------------------------------------------------------------------------------------------------------------ SHAREHOLDERS' EQUITY Realized shareholders' equity 4,503 4,237 3,961 Net unrealized securities gains (losses) (154) 88 - - ------------------------------------------------------------------------------------------------------------------------------------ Total shareholders' equity 4,349 4,325 3,961 - - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities and shareholders' equity $63,967 $62,080 $53,818 ==================================================================================================================================== COMMON SHAREHOLDERS' EQUITY $4,330 $4,305 $3,940 COMMON SHARES OUTSTANDING 235,660,470 234,705,237 233,909,151 ====================================================================================================================================
8 5 PNC BANK CORP. AND SUBSIDIARIES Condensed Consolidated Average Balance Sheet
==================================================================================================================================== Three months ended Six months ended June 30 June 30 ------------------------------------ ----------------------------------- IN MILLIONS 1994 1993 1994 1993 - - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Interest-earning assets Securities $21,859 $21,184 $21,550 $20,088 Loans, net of unearned income Commercial 12,075 10,705 11,714 10,641 Real estate project 1,736 1,876 1,730 1,901 Real estate mortgage 8,981 3,892 9,018 3,960 Consumer 8,617 7,858 8,534 7,831 Other 1,122 853 1,282 866 - - ------------------------------------------------------------------------------------------------------------------------------------ Total loans, net of unearned income 32,531 25,184 32,278 25,199 - - ------------------------------------------------------------------------------------------------------------------------------------ Other earning assets 1,672 707 1,797 746 - - ------------------------------------------------------------------------------------------------------------------------------------ Total interest-earning assets 56,062 47,075 55,625 46,033 - - ------------------------------------------------------------------------------------------------------------------------------------ Other 3,563 3,077 3,672 2,946 - - ------------------------------------------------------------------------------------------------------------------------------------ Total assets $59,625 $50,152 $59,297 $48,979 ==================================================================================================================================== LIABILITIES Interest-bearing liabilities Deposits $26,128 $22,712 $25,923 $22,874 Borrowed funds 10,967 11,485 11,253 10,821 Notes and debentures 11,030 5,578 10,589 5,163 - - ------------------------------------------------------------------------------------------------------------------------------------ Total interest-bearing liabilities 48,125 39,775 47,765 38,858 - - ------------------------------------------------------------------------------------------------------------------------------------ Noninterest-bearing deposits 6,124 5,379 6,073 5,216 Other 1,108 1,129 1,160 1,064 - - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 55,357 46,283 54,998 45,138 - - ------------------------------------------------------------------------------------------------------------------------------------ SHAREHOLDERS' EQUITY 4,268 3,869 4,299 3,841 - - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities and shareholders' equity $59,625 $50,152 $59,297 $48,979 ==================================================================================================================================== COMMON SHAREHOLDERS' EQUITY $4,248 $3,847 $4,279 $3,818 ====================================================================================================================================
9 6 PNC BANK CORP. AND SUBSIDIARIES Credit Quality Data
NONPERFORMING ASSETS ==================================================================================================================================== June 30 December 31 June 30 IN MILLIONS 1994 1993 1993 - - ------------------------------------------------------------------------------------------------------------------------------------ Nonaccrual loans Commercial $232 $181 $237 Real estate project 72 91 184 Real estate mortgage 80 84 32 - - ------------------------------------------------------------------------------------------------------------------------------------ Total nonaccrual loans 384 356 453 - - ------------------------------------------------------------------------------------------------------------------------------------ Restructured loans 4 28 6 - - ------------------------------------------------------------------------------------------------------------------------------------ Total nonperforming loans 388 384 459 - - ------------------------------------------------------------------------------------------------------------------------------------ Foreclosed assets Real estate project 93 108 172 Real estate mortgage 33 42 8 Other 30 20 36 - - ------------------------------------------------------------------------------------------------------------------------------------ Total foreclosed assets 156 170 216 - - ------------------------------------------------------------------------------------------------------------------------------------ Total $544 $554 $675 ====================================================================================================================================
ALLOWANCE FOR CREDIT LOSSES ====================================================================================================================================
Three months ended Six months ended June 30 June 30 ------------------------------------ ----------------------------------- IN MILLIONS 1994 1993 1994 1993 - - ------------------------------------------------------------------------------------------------------------------------------------ Beginning balance $980 $911 $972 $897 Charge-offs (44) (64) (81) (127) Recoveries 15 16 30 32 - - ------------------------------------------------------------------------------------------------------------------------------------ Net charge-offs (29) (48) (51) (95) Provision for credit losses 25 54 50 115 Acquisitions 60 65 - - ------------------------------------------------------------------------------------------------------------------------------------ Ending balance $1,036 $917 $1,036 $917 ====================================================================================================================================
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