-----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, P5wl2RzBJLaCLEuSupu8bpTsYFdlPMYfuDEMjxAox2+Mw73eyPZcN6WtUzPl9bAM 5RD4hxlsjM/ihTlxzKb6Tw== 0000950128-95-000108.txt : 199506300000950128-95-000108.hdr.sgml : 19950630 ACCESSION NUMBER: 0000950128-95-000108 CONFORMED SUBMISSION TYPE: 10-K/A PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950629 FILED AS OF DATE: 19950629 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PNC BANK CORP CENTRAL INDEX KEY: 0000713676 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 251435979 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-09718 FILM NUMBER: 95550869 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 10-K/A 1 PNC BANK 10-K/A 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K/A (Amendment No. 1) (Mark One) [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT 0F 1934 For the year ended December 31, 1994 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OF THE SECURITIES EXCHANGE ACT 0F 1934 For the transition period from ____________ to ____________ 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 35 Exhibit Index begins on page 34 2 By filing this amendment ("Amendment No. 1"), the undersigned registrant hereby amends its Annual Report on Form 10-K for the year ended December 31, 1994 ("1994 Form 10-K"), to include, as permitted by Rule 15d-21 under the Securities Exchange Act of 1934, as amended ("Exchange Act"), the financial statements and exhibits required by Form 11-K with respect to the PNC Bank Corp. Incentive Savings Plan ("Plan"), for the year ended December 31, 1994. In accordance with Rule 12b-15 of the Exchange Act, Item 14 of Part IV of the 1994 Form 10-K is hereby amended and restated to read in its entirety as follows: PART IV Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K The following consolidated financial statements and report of independent auditors of the Corporation, included in the Annual Report to Shareholders at the page indicated, are incorporated herein by reference:
PAGE OF FINANCIAL STATEMENTS ANNUAL REPORT - -------------------- ------------- Report of Ernst & Young LLP,Independent Auditors 45 Consolidated Balance Sheet as of December 31, 1994 and 1993 46 Consolidated Statement of Income for the three years ended December 31, 1994 47 Consolidated Statement of Changes in Shareholders' Equity for the three years ended December 31, 1994 48 Consolidated Statement of Cash Flows for the three years ended December 31, 1994 49 Notes to Consolidated Financial Statements 50 Selected Quarterly Financial Data 68
As permitted by Rule 15d-21 of the Exchange Act, the following financial statements of the Plan and report of independent auditors of the Plan are filed with Amendment No. 1 at the page indicated.
INDEX TO FINANCIAL STATEMENTS PAGE OF AMENDMENT NO.1 - ----------------------------------- -------------- Report of Independent Auditors 7 Statements of Net Assets Available for Plan Benefits 8 Statements of Changes in Net Assets Available for Plan Benefits 9 Notes to Financial Statements 10 Schedule of Assets Held for Investment 19 Schedule of Reportable Transactions 32
- 2 - 3 FINANCIAL STATEMENT SCHEDULES Not applicable. REPORTS ON FORM 8-K A Form 8-K dated as of October 19, 1994, was filed on October 21, 1994, pursuant to Item 5 to report the Corporation's consolidated financial results for the three months and nine months ended September 30, 1994. A Form 8-K dated as of November 23, 1994, was filed on December 7, 1994, pursuant to Item 5 to report two purported class action lawsuits commenced against the Corporation, its Chairman and Chief Executive Officer, and, in one case, its Senior Vice President and Chief Financial Officer, alleging purported violations of federal securities laws relating to disclosures regarding the Corporation's net interest income, interest rate risk, and future prospects and related matters. A Form 8-K was filed on, and dated as of, January 6, 1995, pursuant to Item 5 to report (i) certain actions taken by the Corporation to reduce its interest rate sensitivity; (ii) to announce a charge to earnings related to the cost of consolidating existing telephone banking centers and continued rationalization of the branch network; and (iii) the authorization by the Corporation's Board of Directors to purchase up to 24 million shares of the Corporation's common stock over the next two years. A Form 8-K dated as of January 13, 1995, was filed on January 23, 1995, pursuant to Item 5 to report (i) the Corporation's consolidated financial results for the three months and twelve months ended December 31, 1994; and (ii) the completion of the acquisition of Indian River. A Form 8-K dated as of February 28, 1995, was filed on March 14, 1995, pursuant to Item 5 to report (i) the completion of the acquisition of BlackRock; (ii) the completion of the acquisition of Brentwood; and (iii) the entering into a definitive agreement to acquire Chemical Bank New Jersey. No financial statements were filed with such reports. EXHIBITS The exhibits listed below are filed herewith or are incorporated herein by reference: 3.1 Articles of Incorporation of the Corporation, as amended, incorporated herein by reference to Exhibit 3.1 of the Annual Report on Form 10-K for the year ended December 31, 1993. 3.2 By-Laws of the Corporation, as amended, filed as Exhibit 3.2 to 1994 Form 10-K. 4.1 Instruments defining the rights of holders of long-term debt of the Corporation and its subsidiaries are not filed as Exhibits because the amount of debt under each instrument is less than 10 percent of the consolidated assets of the Corporation. The Corporation undertakes to file these instruments with the Commission on request. 4.2 Designation of Series: $1.80 Cumulative Convertible Preferred Stock -- Series A, incorporated herein as part of Exhibit 3.1. 4.3 Designation of Series: $1.80 Cumulative Convertible Preferred Stock -- Series B, incorporated herein as part of Exhibit 3.1. 4.4 Designation of Series: $1.60 Cumulative Convertible Preferred Stock -- Series C, incorporated herein as part of Exhibit 3.1. 4.5 Designation of Series: $1.80 Cumulative Convertible Preferred Stock -- Series D, incorporated herein as part of Exhibit 3.1.
- 3 - 4 10.1 Supplemental Executive Retirement Income and Disability Plan of the Corporation, incorporated herein by reference to Exhibit 10.2 of the Annual Report on Form 10-K for the year ended December 31, 1990 ("1990 Form 10-K").* 10.2 Supplemental Executive Life Insurance and Spouse's Benefit Plan of the Corporation, incorporated herein by reference to Exhibit 10.3 of the 1990 Form 10-K.* 10.3 Description of the Corporation's Senior Executive Compensation Plan, incorporated herein by reference to Exhibit 10.4 of the Annual Report on Form 10-K for the year ended December 31, 1992 ("1992 Form 10-K").* 10.4 1992 Long-Term Incentive Award Plan of the Corporation, incorporated herein by reference to Exhibit 4.3 of the Registration Statement on Form S-8 at File No. 33-54960.* 10.5 1992 Director Share Incentive Plan, incorporated herein by reference to Exhibit 10.6 of the 1992 Form 10-K.* 10.6 PNC Bank Corp. 1994 Annual Incentive Award Plan, filed as Exhibit 10.6 to 1994 Form 10-K.* 10.7 PNC Bank Corp. Directors Retirement Plan, filed as Exhibit 10.7 to 1994 Form 10-K.* 11 Calculation of Primary and Fully Diluted Earnings Per Share, filed as Exhibit 11 to 1994 Form 10-K. 12.1 Computation of Ratio of Earnings to Fixed Charges, filed as Exhibit 12.1 to 1994 Form 10-K. 12.2 Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Dividends, filed as Exhibit 12.2 to 1994 Form 10-K. 13 Annual Report to Shareholders for the year ended December 31, 1994, filed as Exhibit 13 to 1994 Form 10-K. Such Annual Report, except for those portions thereof that are expressly incorporated by reference herein, is furnished for information of the Securities and Exchange Commission only and is not deemed to be "filed" as part of the 1994 Form 10-K. 21 Schedule of Certain Subsidiaries of the Corporation, filed as Exhibit 21 to 1994 Form 10-K. 23.1 Consent of Ernst & Young LLP, independent auditors for the Corporation, filed as Exhibit 23 to 1994 Form 10-K. 23.2 Consent of Ernst & Young LLP, independent auditors for the Plan, filed herewith. 24 Powers of Attorney of certain directors of the Corporation, filed as Exhibit 24 to 1994 Form 10-K. 27 Financial Data Schedule, filed as Exhibit 27 to 1994 Form 10-K. - --------- * Management contract or compensatory plan.
- 4 - 5 Audited Financial Statements PNC Bank Corp. Incentive Savings Plan YEARS ENDED DECEMBER 31, 1994 AND 1993 WITH REPORT OF INDEPENDENT AUDITORS - 5 - 6 PNC Bank Corp. Incentive Savings Plan Audited Financial Statements Years ended December 31, 1994 and 1993 CONTENTS Report of Independent Auditors ............................................ 7 Audited Financial Statements Statements of Net Assets Available for Plan Benefits ...................... 8 Statements of Changes in Net Assets Available for Plan Benefits ........... 9 Notes to Financial Statements ............................................. 10 Schedule of Assets Held for Investment .................................... 19 Schedule of Reportable Transactions ....................................... 32
- 6 - 7 Report of Independent Auditors Administrative Committee PNC Bank Corp. Incentive Savings Plan We have audited the accompanying statements of net assets available for plan benefits of the PNC Bank Corp. Incentive Savings Plan (Plan) as of December 31, 1994 and 1993, and the related statements of changes in net assets available for plan benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for plan benefits of the Plan at December 31, 1994 and 1993, and the changes in its net assets available for plan benefits for the years then ended, in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplemental schedules of assets held for investment as of December 31, 1994 and reportable transactions for the year ended December 31, 1994, are presented for purposes of complying with the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974, and are not a required part of the basic financial statements. The supplemental schedules have been subjected to the auditing procedures applied in our audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. /s/ Ernst & Young LLP June 26, 1995 Pittsburgh, Pennsylvania - 7 - 8 PNC Bank Corp. Incentive Savings Plan Statements of Net Assets Available for Plan Benefits
DECEMBER 31 1994 1993 ----------------------------- ASSETS Investments at fair value: Common stock: PNC Bank Corp. (1994 cost--$235,167,672; 1993 cost--$232,917,549) $261,982,282 $365,889,775 Other (1993 cost--$39,358,667) -- 48,105,737 PNC Bank Corp. preferred stock (1994 cost-- $8,247; 1993 cost--$8,521) 29,638 39,433 Corporate debt securities (1993 cost--$5,868,247) -- 6,134,410 Short-term investment funds (1994 cost--$76,553,303; 1993 cost--$63,197,125) 76,553,303 63,197,125 U.S. Government and agency securities (1993 cost-- $28,635,836) -- 30,914,648 Registered investment companies (1994 cost-- $118,138,611; 1993 cost--$20,583,368) 117,510,777 22,581,591 Other (1993 cost--$566,605) -- 572,446 Participant loans, at current outstanding principal balance 24,551,533 21,661,680 ----------------------------- Total investments 480,627,533 559,096,845 Cash 1,132 -- Contribution receivable from employer 4,001,640 112,818 Accrued income 2,204,411 887,516 ----------------------------- Total assets 486,834,716 560,097,179 LIABILITIES ESOP note payable to PNC Bank Corp. 98,600,000 110,000,000 ----------------------------- Net assets available for plan benefits $388,234,716 $450,097,179 =============================
See accompanying notes. - 8 - 9 PNC Bank Corp. Incentive Savings Plan Statements of Changes in Net Assets Available for Plan Benefits
YEAR ENDED DECEMBER 31 1994 1993 ------------------------------ Additions: Investment income: Interest $ 5,445,713 $ 5,887,262 Dividends: PNC Bank Corp. 16,455,147 14,713,715 Other 4,976,152 2,030,261 ------------------------------ 26,877,012 22,631,238 Contributions (employer): Cash 8,683,382 19,257,119 PNC Bank Corp. Common Stock 4,100,738 107,680 Contributions (employee) 22,930,280 20,889,993 Contributions (rollover) 1,853,130 1,195,519 ------------------------------ Total additions 64,444,542 64,081,549 Deductions: Payments to participants or beneficiaries 33,282,068 43,593,288 ESOP note interest expense 3,937,737 4,881,729 Other -- 578,071 ------------------------------ Total deductions 37,219,805 49,053,088 Net realized and unrealized (depreciation) appreciation in fair value of investments (102,892,080) 13,113,492 Net assets received in connection with mergers 13,804,880 10,899,776 ------------------------------ Net (decrease) increase (61,862,463) 39,041,729 Net assets available for plan benefits at beginning of year 450,097,179 411,055,450 ------------------------------ Net assets available for plan benefits at end of year $388,234,716 $450,097,179 ==============================
See accompanying notes. - 9 - 10 PNC Bank Corp. Incentive Savings Plan Notes to Financial Statements December 31, 1994 1. SIGNIFICANT ACCOUNTING POLICIES VALUATION Marketable securities are stated at fair value. Securities are valued at the last public sale price of the securities listed on the New York Stock Exchange. If no sales were reported, and in the case of securities traded over the counter, the last bid price at the close of business is used. The value of any security not listed or quoted on any exchange is determined by the last closing bid price, reference to the bid price of any published quotations in common use, or by the quotation of a reputable broker. For certain investments that do not have an established fair value, such value is established based on the opinion of the trustee. The fair value of the participation units in the short-term investment funds and registered investment companies are based on quoted redemption values on the last business day of the plan year. Loans are valued at the amount of principal outstanding. RECLASSIFICATION Certain prior year amounts have been reclassified to conform to current year presentation. 2. DESCRIPTION OF THE PLAN PNC Bank Corp. (PNC Bank) is the sponsor of the Incentive Savings Plan (Plan). The Plan covers substantially all eligible salaried employees of PNC Bank and subsidiaries. The Plan allows participants to contribute from 1 to 15 percent of their biweekly base compensation on a pretax 401(k) basis. PNC Bank matches 100 percent of employee contributions up to 6 percent of base compensation, subject to Internal Revenue Service (IRS) limitations. Participants are fully vested in their balances, including the employer contributions. Plan income is allocated to participants based on an average participant investment balance, on a quarterly basis. - 10 - 11 PNC Bank Corp. Incentive Savings Plan Notes to Financial Statements (continued) 2. DESCRIPTION OF THE PLAN (CONTINUED) Participants in the Plan may invest any voluntary contributions and balances rolled over from any prior plans in any of four investment options: Fund A (a common stock fund), Fund B (an intermediate-term income fund), Fund C (a short-term income fund), and/or Fund D (PNC Bank common stock fund). At December 31, total participants in each fund were as follows:
1994 1993 --------------- Fund A 9,042 8,041 Fund B 7,739 7,184 Fund C 9,354 8,892 Fund D 14,353 13,604
Employer matching contributions for participants whose age is 55 years or under are made in PNC Bank common stock. Participants over age 55 can choose to have their matching contribution made in PNC Bank common stock or in cash to invest in the other three funds. Benefits to participants for withdrawals requested but not yet paid were $8,957,966 and $6,818,078 at December 31, 1994 and 1993, respectively. The Plan has a loan feature that allows participants to borrow against their balance in accordance with the loan policies established by the Administrative Committee. Such borrowings are reflected in the Loan Fund. At December 31, 1994, the Plan was committed to fund approximately $2.9 million in participant loans, of which approximately $1.1 million represents refinancings of existing loans. Under certain circumstances, the Plan permits withdrawals by participants. Although it has not expressed an interest to do so, PNC Bank has the right under the Plan to discontinue contributions at any time and to terminate the Plan subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). - 11 - 12 PNC Bank Corp. Incentive Savings Plan Notes to Financial Statements (continued) 2. DESCRIPTION OF THE PLAN (CONTINUED) The Plan includes a leveraged employee stock ownership plan (ESOP). In September 1989, the ESOP borrowed $140 million from PNC Bank and purchased approximately 7,350,000 shares of PNC Bank common stock through open market purchases. The unallocated shares of PNC Bank common stock are pledged as security on the ESOP note. The ESOP shares are used to match a portion of the PNC Bank's matching contributions to the Plan. PNC Bank is obligated to make annual contributions sufficient to fund principal and interest payments on the ESOP note net of investment income and realized gains and losses in the unallocated ESOP fund. Shares of PNC Bank common stock allocated to participants totaled 567,884 in 1994 and 572,335 in 1993. During 1993, the original ESOP note was replaced with medium-term fixed rate notes. The effective interest rate on the new fixed rate notes was 4.91% in 1994. Principal payments are due on an annual basis and interest payments are due on a semiannual basis. The following is a schedule of debt maturities: 1995 $ -- 1996 14,000,000 1997 16,900,000 1998 20,100,000 1999 23,900,000 2000 and thereafter 23,700,000 ----------- $98,600,000 ===========
At December 31, 1994, the ESOP held 4,568,333 unallocated shares of PNC Bank common stock with a market value of $96,506,035 and $1,793,661 in short-term investment funds. These assets will be used to match future participant contributions. 3. INVESTMENTS The Plan is comprised of investment funds representing both the employer's and the participants' contributions. Records are maintained to account for the noncontributory and the voluntary portion of each fund. - 12 - 13 PNC Bank Corp. Incentive Savings Plan Notes to Financial Statements (continued) 3. INVESTMENTS (CONTINUED) Net realized and unrealized (depreciation) appreciation in aggregate fair value of securities was as follows:
NET REALIZED AND UNREALIZED (DEPRECIATION) APPRECIATION IN FAIR VALUE FOR YEAR ENDED DECEMBER 31 ------------------------------ 1994 1993 ----------------------------- Common stock $ (98,058,741) $11,059,012 Preferred stock (9,612) 420 Corporate obligations (508,043) 152,902 U.S. Government and agency securities (1,770,357) 759,077 Collective funds (2,540,362) 1,142,081 Other (4,965) -- ----------------------------- $(102,892,080) $13,113,492 =============================
The fair values of individual investments that represent 5 percent or more of the Plan's net assets are as follows:
DECEMBER 31 1994 1993 ---------------------------- PNC Bank common stock $261,982,282 $365,889,775 PNC Money Market Portfolio Fund 76,553,303 63,197,125 PNC Index Equity Portfolio Fund 19,701,378 21,478,252 PNC Value Equity Portfolio Fund 23,877,171 -- PNC Managed Income Fund 23,252,746 --
- 13 - 14 PNC Bank Corp. Incentive Savings Plan Notes to Financial Statements (continued) 3. INVESTMENTS (CONTINUED) The net assets available for plan benefits for the Plan's investment funds were as follows: December 31, 1994
COMMON INTERMEDIATE- SHORT-TERM PNC BANK STOCK- TERM FIXED FIXED INCOME- CORP. STOCK- FUND A INCOME-FUND B FUND C FUND D ------------------------------------------------------------------- Investments at fair value: PNC Bank common stock $ -- $ -- $ -- $110,059,372 PNC Bank preferred stock -- -- -- 29,638 Short-term investment funds 7,717,236 3,868,123 54,366,600 8,405,457 Registered investment companies PNC Fund - Small Cap Growth Equity Portfolio 5,568,797 -- -- -- PNC Fund - International Equity Portfolio 16,456,280 -- -- -- PNC Fund - Small Cap Value Equity Portfolio 4,902,460 -- -- -- PNC Fund - Index Equity Portfolio 19,701,378 -- -- -- PNC Fund - Growth Equity Portfolio 8,733,812 -- -- -- PNC Fund - Intermediate Term Bond Portfolio -- 15,018,133 -- -- PNC Fund - Managed Income Portfolio -- 23,252,746 -- -- PNC Fund - Value Equity Portfolio 23,877,171 -- -- -- Participant loans -- -- -- -- ------------------------------------------------------------------- Total investments 86,957,134 42,139,002 54,366,600 118,494,467 Cash -- -- 1,132 -- Contribution receivable 49,455 52,745 74,551 3,824,889 Accrued income 32,715 16,413 251,370 1,875,645 Due to (from) fund (2,194,620) (966,637) 1,361,512 4,343,628 ------------------------------------------------------------------- Total assets 84,844,684 41,241,523 56,055,165 128,538,629 ESOP note payable -- -- -- -- ------------------------------------------------------------------- Net assets available for plan benefits $84,844,684 $ 41,241,523 $56,055,165 $128,538,629 ===================================================================
PNC PNC BANK CORP. BANK CORP. ALLOCATED UNALLOCATED LOAN ESOP FUND ESOP FUND FUND TOTAL ------------------------------------------------------------------ Investments at fair value: PNC Bank common stock $55,416,875 $ 96,506,035 $ -- $261,982,282 PNC Bank preferred stock -- -- -- 29,638 Short-term investment funds -- 1,793,661 402,226 76,553,303 Registered investment companies PNC Fund - Small Cap Growth Equity Portfolio -- -- -- 5,568,797 PNC Fund - International Equity Portfolio -- -- -- 16,456,280 PNC Fund - Small Cap Value Equity Portfolio -- -- -- 4,902,460 PNC Fund - Index Equity Portfolio -- -- -- 19,701,378 PNC Fund - Growth Equity Portfolio -- -- -- 8,733,812 PNC Fund - Intermediate Term Bond Portfolio -- -- -- 15,018,133 PNC Fund - Managed Income Portfolio -- -- -- 23,252,746 PNC Fund - Value Equity Portfolio -- -- -- 23,877,171 Participant loans -- -- 24,551,533 24,551,533 ------------------------------------------------------------------- Total investments 55,416,875 98,299,696 24,953,759 480,627,533 Cash -- -- -- 1,132 Contribution receivable -- -- -- 4,001,640 Accrued income 7,367 19,137 1,764 2,204,411 Due to (from) fund 3,547,204 (6,107,506) 16,419 -- ------------------------------------------------------------------- Total assets 58,971,446 92,211,327 24,971,942 486,834,716 ESOP note payable -- (98,600,000) -- (98,600,000) ------------------------------------------------------------------- Net assets available for plan benefits $58,971,446 $ (6,388,673) $24,971,942 $388,234,716 ===================================================================
- 14 - 15 PNC Bank Corp. Incentive Savings Plan Notes to Financial Statements (continued) 3. INVESTMENTS (CONTINUED) December 31, 1993
COMMON INTERMEDIATE- SHORT-TERM PNC BANK STOCK- TERM FIXED FIXED INCOME- CORP. STOCK- FUND A INCOME-FUND B FUND C FUND D ------------------------------------------------------------------ Investments at fair value: Common stock: PNC Bank $ -- $ -- $ -- $155,765,635 Other 48,105,737 -- -- -- PNC Bank preferred stock -- -- -- 39,433 Corporate Debt Securities -- 6,134,410 -- -- Short-term investment funds 5,138,462 857,353 51,021,486 2,901,292 U.S. Government and agency securities -- 30,914,648 -- -- Registered investment companies PNC Fund - Index Equity Portfolio 21,478,252 -- -- -- PNC Fund - Short-Term Bond Portfolio -- 1,103,339 -- -- Other investments -- 472,446 100,000 -- Participant loans -- -- -- -- ------------------------------------------------------------------ Total investments 74,722,451 39,482,196 51,121,486 158,706,360 Contribution receivable from employer 36,832 28,028 47,958 -- Accrued income 98,716 631,679 134,712 9,504 Due to (from) fund 11,156 68,468 35,187 1,656,559 ------------------------------------------------------------------ Total assets 74,869,155 40,210,371 51,339,343 160,372,423 ESOP note payable -- -- -- -- ------------------------------------------------------------------ Net assets available for plan benefits $74,869,155 $40,210,371 $51,339,343 $160,372,423 ==================================================================
PNC PNC BANK CORP. BANK CORP. ALLOCATED UNALLOCATED LOAN ESOP FUND ESOP FUND FUND TOTAL ------------------------------------------------------------------ Investments at fair value: Common stock: PNC Bank $58,424,328 $ 151,699,812 $ -- $ 365,889,775 Other -- -- -- 48,105,737 PNC Bank preferred stock -- -- -- 39,433 Corporate Debt Securities -- -- -- 6,134,410 Short-term investment funds -- 2,882,834 395,698 63,197,125 U.S. Government and agency securities -- -- -- 30,914,648 Registered investment companies PNC Fund - Index Equity Portfolio -- -- -- 21,478,252 PNC Fund - Short-Term Bond Portfolio -- -- -- 1,103,339 Other investments -- -- -- 572,446 Participant loans -- -- 21,661,680 21,661,680 ------------------------------------------------------------------ Total investments 58,424,328 154,582,646 22,057,378 559,096,845 Contribution receivable from employer -- -- -- 112,818 Accrued income 2,866 9,342 697 887,516 Due to (from) fund 3,473,684 (5,116,852) (128,202) -- ------------------------------------------------------------------ Total assets 61,900,878 149,475,136 21,929,873 560,097,179 ESOP note payable -- (110,000,000) -- (110,000,000) ------------------------------------------------------------------ Net assets available for plan benefits $61,900,878 $ 39,475,136 $21,929,873 $ 450,097,179 ==================================================================
- 15 - 16 PNC Bank Corp. Incentive Savings Plan Notes to Financial Statements (continued) 3. INVESTMENTS (CONTINUED) The changes in net assets available for plan benefits for the Plan's investment funds were as follows: Year ended December 31, 1994
COMMON INTERMEDIATE- SHORT-TERM PNC BANK STOCK- TERM FIXED FIXED INCOME- CORP. STOCK- FUND A INCOME-FUND B FUND C FUND D --------------------------------------------------------------------- Net assets available for plan benefits at December 31, 1993 $ 74,869,155 $ 40,210,371 $51,339,343 $ 160,372,423 Additions: Interest and dividends 3,735,759 2,746,838 2,165,379 7,149,082 Contributions: Employer 379,285 273,114 415,983 4,100,738 Employee 8,523,507 4,297,217 4,604,632 5,504,924 Rollover 736,161 483,623 241,548 391,798 Deductions: Payments to participants or beneficiaries (5,657,217) (3,810,151) (6,106,363) (14,237,379) Net transfers 1,551,666 (2,023,907) (2,390,922) (258,471) ESOP activity: Interest expense -- -- -- -- Other ESOP activity -- -- -- 3,460,972 Net realized and unrealized depreciation (1,663,564) (3,639,287) -- (40,891,136) Acquisitions 2,369,932 2,703,705 5,785,565 2,945,678 --------------------------------------------------------------------- Net assets available for plan benefits at December 31, 1994 $ 84,844,684 $ 41,241,523 $56,055,165 $ 128,538,629 =====================================================================
PNC PNC BANK CORP. BANK CORP. ALLOCATED UNALLOCATED LOAN ESOP FUND ESOP FUND FUND TOTAL --------------------------------------------------------------------- Net assets available for plan benefits at December 31, 1993 $ 61,900,878 $ 39,475,136 $21,929,873 $ 450,097,179 Additions: Interest and dividends 2,917,633 6,702,346 1,459,975 26,877,012 Contributions: Employer -- 7,615,000 -- 12,784,120 Employee -- -- -- 22,930,280 Rollover -- -- -- 1,853,130 Deductions: Payments to participants or beneficiaries (1,931,421) -- (1,539,537) (33,282,068) Net transfers 1,599,616 (1,599,613) 3,121,631 -- ESOP activity: Interest expense -- (3,937,737) -- (3,937,737) Other ESOP activity 14,982,094 (18,443,066) -- -- Net realized and unrealized depreciation (20,497,354) (36,200,739) -- (102,892,080) Acquisitions -- -- -- 13,804,880 --------------------------------------------------------------------- Net assets available for plan benefits at December 31, 1994 $ 58,971,446 $ (6,388,673) $24,971,942 $ 388,234,716 =====================================================================
- 16 - 17 PNC Bank Corp. Incentive Savings Plan Notes to Financial Statements (continued) 3. INVESTMENTS (CONTINUED) Year ended December 31, 1993
COMMON INTERMEDIATE- SHORT-TERM PNC BANK STOCK- TERM FIXED FIXED INCOME- CORP. STOCK- FUND A INCOME-FUND B FUND C FUND D -------------------------------------------------------------------- Net assets available for plan benefits at December 31, 1992 $63,638,602 $ 36,043,537 $ 58,872,388 $155,688,607 Additions: Interest and dividends 2,129,796 2,469,705 1,732,255 6,288,509 Contributions: Employer 310,953 227,374 418,800 107,680 Employee 6,330,784 3,782,203 5,157,880 5,619,126 Rollover 476,369 304,357 71,788 343,005 Deductions: Payments to participants or beneficiaries (5,911,660) (3,680,956) (12,298,840) (19,631,917) Net transfers 1,891,174 (482,259) (6,384,354) 2,963,389 ESOP activity: Interest expense -- -- -- -- Other ESOP activity -- -- -- 48,180 Other -- -- -- -- Net realized and unrealized appreciation 5,494,419 880,658 -- 2,989,964 Acquisitions 508,718 665,752 3,769,426 5,955,880 -------------------------------------------------------------------- Net assets available for plan benefits at December 31, 1993 $74,869,155 $ 40,210,371 $ 51,339,343 $160,372,423 ====================================================================
PNC PNC BANK CORP. BANK CORP. ALLOCATED UNALLOCATED LOAN ESOP FUND ESOP FUND FUND TOTAL -------------------------------------------------------------------- Net assets available for plan benefits at December 31, 1992 $44,080,514 $ 33,663,414 $ 19,068,388 $411,055,450 Additions: Interest and dividends 1,672,651 6,979,883 1,358,439 22,631,238 Contributions: Employer -- 18,299,992 -- 19,364,799 Employee -- -- -- 20,889,993 Rollover -- -- -- 1,195,519 Deductions: Payments to participants or beneficiaries (1,322,315) -- (747,600) (43,593,288) Net transfers (2,486,698) 1,670,031 2,828,717 -- ESOP activity: Interest expense -- (4,881,729) -- (4,881,729) Other ESOP activity 19,308,995 (19,357,175) -- -- Other -- -- (578,071) (578,071) Net realized and unrealized appreciation 647,731 3,100,720 -- 13,113,492 Acquisitions -- -- -- 10,899,776 -------------------------------------------------------------------- Net assets available for plan benefits at December 31, 1993 $61,900,878 $ 39,475,136 $ 21,929,873 $450,097,179 ====================================================================
- 17 - 18 PNC Bank Corp. Incentive Savings Plan Notes to Financial Statements (Continued) 4. TRANSACTIONS WITH PARTIES-IN-INTEREST The Investment Management and Trust Division of PNC Bank, N.A., a wholly owned subsidiary of PNC Bank, administers the Plan assets, maintains discretionary investment power, and is the safekeeping agent. PNC Bank pays administrative costs incurred by the Plan. The Investment Management and Trust Division of PNC Bank, Ohio, N.A., a wholly owned subsidiary of PNC Bank, administers the ESOP assets of the Plan. The Plan also holds shares in PNC Bank, N.A. sponsored registered investment company mutual funds. 5. INCOME TAX STATUS The Plan has received a favorable letter of determination from the IRS which states that the Plan qualifies under Section 401(a) of the Internal Revenue Code (Code) and is exempt from taxation under Section 501(a) of the Code. The Plan Administrator is not aware of any events or actions that have occurred in the operation of the Plan that would result in its disqualification. - 18 - 19 PNC Bank Corp. Incentive Savings Plan Schedule of Assets Held for Investment December 31, 1994 COMMON STOCK-FUND A
IDENTITY OF ISSUE, BORROWER, DESCRIPTION OF OR SIMILAR ENTITY INVESTMENT COST FAIR VALUE - --------------------------------------------------------------------------------------------- Registered Investment Companies - ------------------------------- The PNC Fund - Small Cap Growth Equity Portfolio Fund 093 Institutional Class 508,102 units $ 4,917,978 $ 5,568,797 The PNC Fund - International Equity Portfolio Fund 065 Institutional Class 1,314,399 units 16,899,654 16,456,280 The PNC Fund - Small Cap Value Portfolio Fund 046 Institutional Class 386,020 units 5,245,014 4,902,460 The PNC Fund - Index Equity Portfolio Fund 045 Institutional Class 1,837,815 units 18,505,111 19,701,378 The PNC Fund - Growth Equity Portfolio Fund 029 Institutional Class 872,509 units 8,585,383 8,733,812 The PNC Fund - Value Equity Portfolio Fund 089 Institutional Class 2,120,530 units 24,389,852 23,877,171 Interest Bearing Cash - --------------------- PNC Money Market Institutional Class 7,717,236 units 7,717,236 7,717,236 -------------------------------- TOTAL COMMON STOCK - FUND A 86,260,228 86,957,134
- 19 - 20 Schedule of Assets Held for Investment (continued) INTERMEDIATE-TERM FIXED INCOME-FUND B
IDENTITY OF ISSUE, BORROWER, DESCRIPTION OF OR SIMILAR ENTITY INVESTMENT COST FAIR VALUE - --------------------------------------------------------------------------------------------- Registered Investment Companies - ------------------------------- The PNC Fund - Intermediate Term Bond Portfolio Fund 090 Institutional Class 1,687,431 units 15,498,473 15,018,133 The PNC Fund - Managed Income Portfolio Fund 013 Institutional Class 2,404,627 units 24,097,146 23,252,746 Interest Bearing Cash - --------------------- PNC Money Market Institutional Class 3,868,123 units 3,868,123 3,868,123 ------------------------------- TOTAL INTERMEDIATE-TERM FIXED INCOME-FUND B 43,463,742 42,139,002
- 20 - 21 Schedule of Assets Held for Investment (continued) SHORT-TERM FIXED INCOME-FUND C
IDENTITY OF ISSUE, BORROWER, DESCRIPTION OF OR SIMILAR ENTITY INVESTMENT COST FAIR VALUE - --------------------------------------------------------------------------------------------- Interest Bearing Cash - --------------------- PNC Money Market Institutional Class 54,366,600 units 54,366,600 54,366,600 ------------------------------- TOTAL SHORT-TERM FIXED INCOME-FUND C 54,366,600 54,366,600
- 21 - 22 Schedule of Assets Held for Investment (continued) PNC BANK CORP. STOCK-FUND D
IDENTITY OF ISSUE, BORROWER, DESCRIPTION OF OR SIMILAR ENTITY INVESTMENT COST FAIR VALUE - --------------------------------------------------------------------------------------------- Common Stock - ------------ PNC Bank Corp. 5,209,911 shares 95,881,945 110,059,372 Preferred Stock - --------------- PNC Bank Corp. 812 shares 8,247 29,638 Interest Bearing Cash - --------------------- PNC Money Market Institutional Class 8,405,457 units 8,405,457 8,405,457 -------------------------------- TOTAL PNC BANK CORP. STOCK-FUND D 104,295,649 118,494,467
- 22 - 23 Schedule of Assets Held for Investment (continued) ESOP ACCOUNT
IDENTITY OF ISSUE, BORROWER, DESCRIPTION OF OR SIMILAR ENTITY INVESTMENT COST FAIR VALUE - --------------------------------------------------------------------------------------------- Common Stock - ------------ PNC Bank Corp.: Allocated Account 2,623,284 shares 52,661,108 55,416,875 Unallocated Account 4,568,333 shares 86,624,619 96,506,035 Interest Bearing Cash - --------------------- PNC Money Market Institutional Class 1,793,661 units 1,793,661 1,793,661 ------------------------------- TOTAL ESOP ACCOUNT 141,079,388 153,716,571
- 23 - 24 Schedule of Assets Held for Investment (continued) LOAN FUND
IDENTITY OF ISSUE, BORROWER, DESCRIPTION OF OR SIMILAR ENTITY INVESTMENT COST FAIR VALUE - --------------------------------------------------------------------------------------------- PARTICIPANT LOANS Installment Loans - ----------------- 89-02 550,800 par Effective January, 1989 10.50% 148 148 89-05 890,900 par Effective May, 1989 11.50% 19,634 19,634 89-09 1,472,600 par Effective September, 1989 10.50% 47 47 89-11 348,800 par Effective November, 1989 10.50% 6,577 6,577 89-12 262,800 par Effective December, 1989 10.50% 218 218 90-01 328,500 par Effective January, 1990 10.50% 7,296 7,296 90-02 603,800 par Effective February, 1990 10.00% 3,266 3,266 90-03 464,800 par Effective March, 1990 10.00% 1,221 1,221 90-04 408,900 par Effective April, 1990 10.00% 10,955 10,955
- 24 - 25 Schedule of Assets Held for Investment (continued)
IDENTITY OF ISSUE, BORROWER, DESCRIPTION OF OR SIMILAR ENTITY INVESTMENT COST FAIR VALUE - --------------------------------------------------------------------------------------------- 90-05 700,300 par Effective May, 1990 10.00% 8,619 8,619 90-06 537,100 par Effective June, 1990 10.00% 11,180 11,180 90-07 489,100 par Effective July, 1990 10.00% 3,832 3,832 90-08 559,800 par Effective August, 1990 10.00% 11,673 11,673 90-09 979,000 par Effective September, 1990 10.00% 9,010 9,010 90-10 423,000 par Effective October, 1990 10.00% 5,194 5,194 90-11 442,500 par Effective November, 1990 10.00% 4,150 4,150 90-12 232,200 par Effective December, 1990 10.00% 5,138 5,138 BOD-90 595,341 par Effective January, 1991 At Various Rates 6,266 6,266 91-01 418,100 par Effective January, 1991 10.00% 20,794 20,794
- 25 - 26 Schedule of Assets Held for Investment (continued)
IDENTITY OF ISSUE, BORROWER, DESCRIPTION OF OR SIMILAR ENTITY INVESTMENT COST FAIR VALUE - --------------------------------------------------------------------------------------------- 91-02 643,300 par Effective February, 1991 9.50% 6,248 6,248 91-03 714,000 par Effective March, 1991 9.00% 21,277 21,277 91-04 572,900 par Effective April, 1991 9.00% 11,192 11,192 91-05 1,270,800 par Effective May, 1991 9.00% 39,378 39,378 91-06 955,200 par Effective June, 1991 8.50% 35,033 35,033 91-07 955,200 par Effective July, 1991 8.5% 41,178 41,178 91-08 1,507,100 par Effective August, 1991 8.50% 56,321 56,321 91-09 1,579,700 par Effective September, 1991 8.50% 91,271 91,271 91-12 2,235,000 par Effective December, 1991 8.00% 126,147 126,147 92-03 3,962,900 par Effective March, 1992 6.50% 541,559 541,559
- 26 - 27 Schedule of Assets Held for Investment (continued)
IDENTITY OF ISSUE, BORROWER, DESCRIPTION OF OR SIMILAR ENTITY INVESTMENT COST FAIR VALUE - --------------------------------------------------------------------------------------------- 92-06 3,931,400 par Effective June, 1992 6.50% 463,481 463,481 92-09 4,333,500 par Effective September, 1992 6.50% 731,557 731,557 92-12 2,505,000 par Effective December, 1992 6.00% 475,808 475,808 93-03 3,459,000 par Effective March, 1993 6.00% 949,461 949,461 93-06 4,122,800 par Effective June, 1993 6.00% 1,356,636 1,356,636 93-09 4,677,500 par Effective September, 1993 6.00% 2,138,723 2,138,723 93-12 3,370,500 par Effective December, 1993 6.00% 2,397,537 2,397,537 94-03 4,357,400 par Effective March, 1994 6.00% 3,418,301 3,418,301 94-06 4,602,200 par Effective June, 1994 6.25% 3,967,291 3,967,291 94-09 4,999,100 par Effective September, 1994 7.25% 4,715,977 4,715,977 ------------------------------ 21,719,594 21,719,594
- 27 - 28 Schedule of Assets Held for Investment (continued)
IDENTITY OF ISSUE, BORROWER, DESCRIPTION OF OR SIMILAR ENTITY INVESTMENT COST FAIR VALUE - --------------------------------------------------------------------------------------------- Mortgage Loans - -------------- 89-01-M 15,000 par Effective January, 1989 10.50% 7,756 7,756 89-03CFC-M 41,300 par Effective February, 1989 10.50% 14,336 14,336 CFC88-M 349,104 par Effective February, 1989 At various rates 12,080 12,080 89-03-M 19,700 par Effective March, 1989 11.50% 3,584 3,584 89-04-M 42,900 par Effective April, 1989 11.50% 8,020 8,020 89-05-M 59,700 par Effective May, 1989 11.50% 1,464 1,464 89-06-M 85,300 par Effective June, 1989 11.50% 8,093 8,093 89-09-M 119,900 par Effective September, 1989 10.50% 37,784 37,784 90-02-M 12,800 par Effective February, 1990 10.00% 3,471 3,471 90-03-M 88,100 par Effective March, 1990 10.00% 30,287 30,287
- 28 - 29 Schedule of Assets Held for Investment (continued)
IDENTITY OF ISSUE, BORROWER, DESCRIPTION OF OR SIMILAR ENTITY INVESTMENT COST FAIR VALUE - --------------------------------------------------------------------------------------------- 90-04-M 66,600 par Effective April, 1990 10.00% 22,595 22,595 90-05-M 38,700 par Effective May, 1990 10.00% 10,423 10,423 90-06-M 41,000 par Effective June, 1990 10.00% 19,342 19,342 90-07-M 49,500 par Effective July, 1990 10.00% 6,746 6,746 90-08-M 80,200 par Effective August, 1990 10.00% 66,232 66,232 90-12-M 11,200 par Effective December, 1990 10.00% 9,641 9,641 91-02-M 83,400 par Effective February, 1991 9.50% 60,576 60,576 91-03-M 58,700 par Effective March, 1991 9.00% 29,010 29,010 91-04-M 59,000 par Effective April, 1991 9.00% 34,974 34,974 91-05-M 57,000 par Effective May, 1991 9.00% 4,596 4,596
- 29 - 30 Schedule of Assets Held for Investment (continued)
IDENTITY OF ISSUE, BORROWER, DESCRIPTION OF OR SIMILAR ENTITY INVESTMENT COST FAIR VALUE - --------------------------------------------------------------------------------------------- 91-07-M 118,700 par Effective July, 1991 8.50% 52,644 52,644 91-08-M 60,100 par Effective August, 1991 8.50% 33,010 33,010 91-09-M 42,800 par Effective September, 1991 8.50% 20,629 20,629 91-12-M 92,200 par Effective December, 1991 8.00% 48,204 48,204 92-03-M 504,700 par Effective March, 1992 6.50% 317,136 317,136 92-06-M 347,100 par Effective June, 1992 At various rates 222,756 222,756 92-09-M 287,300 par Effective September, 1992 6.50% 218,644 218,644 92-12-M 148,700 par Effective December, 1992 6.00% 114,552 114,552 93-03-M 203,200 par Effective March, 1993 6.00% 166,374 166,374 93-06-M 309,100 par Effective June, 1993 6.00% 196,553 196,553
- 30 - 31 Schedule of Assets Held for Investment (continued)
IDENTITY OF ISSUE, BORROWER, DESCRIPTION OF OR SIMILAR ENTITY INVESTMENT COST FAIR VALUE - --------------------------------------------------------------------------------------------- 93-09-M 379,300 par Effective June, 1993 6.00% 359,005 359,005 93-12-M 185,600 par Effective December, 1993 6.00% 178,019 178,019 94-03-M 194,600 par Effective March, 1994 6.00% 232,584 232,584 94-06-M 252,100 par Effective June, 1994 6.25% 210,930 210,930 94-09-M 70,800 par Effective September, 1994 7.25% 69,889 69,889 -------------------------------- 2,831,939 2,831,939 Short-Term Investment Funds - --------------------------- PNC Money Market Portfolio 402,226 units 402,226 402,226 -------------------------------- TOTAL LOAN FUND 24,953,759 24,953,759 -------------------------------- TOTAL PNC BANK CORP. INCENTIVE SAVINGS PLAN $454,419,366 $480,627,533 ================================
- 31 - 32 PNC Bank Corp. Incentive Savings Plan Schedule of Reportable Transactions Year Ended December 31, 1994
FAIR VALUE COST OF ASSETS ON NET PURCHASE SELLING OF TRANSACTION GAIN DESCRIPTION OF ASSETS PRICE PRICE ASSETS DATE (LOSS) - --------------------------------------------------------------------------------------------------------------- Category (iii)--Series of securities transactions in excess of 5% of the fair value of Plan assets - --------------------------------------------------------------------------------------------------------------- PNC Money Market Portfolio #1 - Institutional Class --------------------------------------------------- 22,140,458 units $22,140,458 $22,140,458 $22,140,458 $ -- 29,300,910 units $29,300,910 29,300,910 29,300,910 -- PNC Bank Corp. Common Stock --------------------------- 635,494 shares 17,606,755 17,606,755 17,606,755 -- 591,642 shares 16,689,357 10,976,709 16,689,357 5,712,648
There were no category (i), (ii) or (iv) reportable transactions during 1994. - 32 - 33 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, PNC Bank Corp. has duly caused this amendment to be signed on its behalf by the undersigned, thereunto duly authorized. PNC BANK CORP. (REGISTRANT) Date: June 29, 1995 By /s/ Robert L. Haunschild --------------------------- Robert L. Haunschild SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER - 33 - 34 EXHIBIT INDEX
Page of Amendment No. 1 --------------- 23.2 Consent of Independent Auditors, filed herewith. 35
- 34 - EX-23.2 2 PNC BANK 10-K/A 1 Exhibit 23.2 CONSENT OF INDEPENDENT AUDITORS We consent to the incorporation by reference in the Registration Statement (Form S-8, Number 33-25140) pertaining to the PNC Bank Corp. Incentive Savings Plan and in the related Prospectus of our report dated June 26, 1995 with respect to the financial statements and schedules of the PNC Bank Corp. Incentive Savings Plan included in this Annual Report on Form 10-K/A (Amendment No. 1) for the year ended December 31, 1994. /s/ ERNST & YOUNG LLP Pittsburgh, Pennsylvania June 28, 1995 - 35 - -----END PRIVACY-ENHANCED MESSAGE-----