-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, S7EBwUh/ZAw9lRlqLJbkc155fs0DJFN7lM2Xi9iybttFUU77gblhp1yvf0dPeXFA hh5/npW+yMuWS9koqVMfYQ== 0000950128-95-000185.txt : 19951020 0000950128-95-000185.hdr.sgml : 19951020 ACCESSION NUMBER: 0000950128-95-000185 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950930 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19951019 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: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09718 FILM NUMBER: 95581597 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 SEPTEMBER 26, 1995 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) 762-1553 (Registrant's telephone number, including area code) (Former name or former address, if changed since last report) 2 ITEM 5. OTHER EVENTS 1995 THIRD QUARTER FINANCIAL RESULTS On October 18, 1995, PNC Bank Corp. ("Corporation") reported results of operations for the three months and nine months ended September 30, 1995. A copy of the earnings press release issued by the Corporation is attached as Exhibit 99 and incorporated herein by reference. PROPOSED MERGER WITH MIDLANTIC CORPORATION On September 26, 1995, the Corporation received approval of the proposed merger ("Merger") with Midlantic Corporation ("Midlantic") from the Board of Governors of the Federal Reserve System ("Federal Reserve") under the Bank Holding Company Act of 1956, as amended (the "BHCA"). The BHCA provides that the Merger may not be consummated until the 30th day after Federal Reserve approval is received. On October 3, 1995, the Corporation also received approval of the Merger from the Commissioner of Banking of New Jersey under applicable provisions of New Jersey banking laws. At a Special Meeting of Shareholders to be held on Friday, November 17, 1995, shareholders of record of the Corporation at the close of business on September 29, 1995, will be asked to consider and vote upon the Merger, including, among other things, the issuance of up to 115,000,000 shares of the Corporation's common stock. ADDITIONAL DIRECTOR On October 5, 1995, Paul W. Chellgren, President and Chief Operating Officer of Ashland, Inc., was appointed to the Corporation's Board of Directors, increasing the number of directors to eighteen. As previously disclosed, there will be an additional four directors appointed to the Corporation's Board of Directors upon consummation of the Merger. 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: October 19, 1995 By /s/ ROBERT L. HAUNSCHILD -------------------------- Robert L. Haunschild Senior Vice President and Chief Financial Officer 3 4 EXHIBIT INDEX 99 A copy of the earnings press release issued by the Corporation on October 18, 1995, with respect to the results of operations for the three months and nine months ended September 30, 1995, is filed herewith. 4 EX-99 2 PNC BANK 8-K 1 Exhibit 99 CONTACTS: MEDIA: - ------ Jonathan Williams (412) 762-4550 INVESTORS: - ---------- William H. Callihan (412) 762-8257 PNC BANK CORP. EARNS $149.0 MILLION IN THIRD QUARTER PITTSBURGH, October 18, 1995 -- PNC Bank Corp. (NYSE: PNC) today reported 1995 third quarter net income of $149.0 million, or $0.64 per fully diluted share, compared with $188.0 million, or $0.79 per fully diluted share, a year ago. Return on average assets and return on average common shareholders' equity were 0.96 percent and 13.42 percent, respectively, in the third quarter of 1995, and the after-tax profit margin was 22.6 percent. Net income totaled $137.0 million, or $0.59 per fully diluted share, for the second quarter of 1995. For the first nine months of 1995, net income was $411.7 million or $1.77 per fully diluted share, compared with $581.5 million and $2.44, respectively, in the previous year. "Third quarter results are consistent with our expectations and characterized by a solid performance in our core businesses. Actions taken within the last year to reposition our balance sheet have had a stabilizing effect on net interest income and net interest margin," said Thomas H. O'Brien, chairman and chief executive officer. "We have received regulatory approval for our merger with Midlantic Corporation. This transaction, coupled with the acquisition of Chemical Bank New Jersey, will further strengthen our balance sheet by adding a stable base of core deposits and consumer assets; leverage our position in Philadelphia; and give us a significant presence in the attractive New Jersey marketplace." -more- 2 PNC Bank Corp. Earns $149.0 Million in Third Quarter -- Page 2 Taxable-equivalent net interest income totaled $372.8 million in the third quarter of 1995 compared with $503.2 million a year ago. The net interest margin was 2.61 percent compared with 3.45 percent in the third quarter of 1994. The declines reflect the costs of actions taken over the last year to downsize the balance sheet and reduce interest rate sensitivity. Net interest income and net interest margin in the second quarter of 1995 were $370.6 million and 2.58 percent, respectively. Average assets for the third quarter of 1995 totaled $61.7 billion compared with $62.0 billion in the third quarter last year. For the third quarter of 1995, average loans totaled $36.8 billion. Excluding acquisitions, average loans increased 6.4 percent compared with the third quarter of 1994. Average loans represented 64.5 percent of average earning assets compared with 59.2 percent a year ago. Noninterest income increased $56.2 million, or 24.3 percent, to $287.3 million in the third quarter of 1995 compared with the year-earlier period. Investment management and trust income increased $24.3 million, or 33.6 percent, to $96.7 million, due to the BlackRock acquisition, new business, and an increase in the value of managed assets. Discretionary assets totaled $85.9 billion at Sept. 30, 1995, compared with $50.1 billion a year ago. Service charges, fees and commissions decreased $3.4 million to $91.7 million in the third quarter of 1995 compared with the same quarter a year ago, primarily reflecting the impact of the Corporation's credit card alliance. Effective May 1, 1995, the Corporation entered into an alliance with third parties to provide certain administrative, marketing and data processing services for the Corporation's credit card business. The third parties receive the related fee income and incur associated operating expenses for such services. Excluding the effect of this alliance, service charges, fees and commissions increased 4.0 percent, or $3.5 million. Mortgage banking income decreased $27.6 million to $51.3 million during the third quarter of 1995 compared with the year-earlier period primarily due to lower gains on sales of servicing. -more- 3 PNC Bank Corp. Earns $149.0 Million in Third Quarter -- Page 3 Other noninterest income increased $18.6 million in the comparison. A $28.2 million gain on the sale of 12 branches located in Dayton, Ohio, was partially offset by lower venture capital income. The branch sale was initiated in connection with the ongoing rationalization of the Corporation's retail branch network. Noninterest expense decreased $3.1 million to $432.8 million for the third quarter of 1995 compared with the year-earlier period. Lower staff and Federal deposit insurance expenses were substantially offset in the comparison by the impact of acquisitions. Total assets and shareholders' equity were $61.2 billion and $4.5 billion, respectively, at Sept. 30, 1995 compared with $64.1 billion and $4.4 billion at Dec. 31, 1994. At Sept. 30, 1995, the leverage capital ratio was 6.45 percent, and Tier I and total risk-based capital ratios are estimated to be 8.3 percent and 11.9 percent, respectively. The Corporation's asset quality remained strong during the quarter. The allowance for credit losses was $943.3 million at Sept. 30, 1995, or 346 percent of nonperforming loans compared with 312 percent at June 30, 1995, and 281 percent at Sept. 30, 1994. Nonperforming assets declined $38.2 million during the quarter to $407.7 million at Sept. 30, 1995. The comparable amounts at June 30, 1995, and Sept. 30, 1994, were $445.9 million and $515.2 million, respectively. The ratio of nonperforming assets to total loans and foreclosed assets was 1.10 percent at Sept. 30, 1995, compared with 1.44 percent a year ago. Net charge-offs totaled $17.8 million in the third quarter of 1995 compared with $16.0 million in the year-earlier period. On July 10, 1995, PNC Bank Corp. entered into a definitive merger agreement with Midlantic Corporation, a regional bank holding company headquartered in Edison, N.J. At Sept. 30, 1995, Midlantic had assets and deposits of approximately $13.9 billion and $10.9 billion, respectively. The merger, which will be accounted for as a pooling of interests, is targeted to be completed by year-end 1995, pending approval by shareholders of both companies. -more- 4 PNC Bank Corp. Earns $149.0 Million in Third Quarter -- Page 4 Effective the close of business Oct. 6, 1995, the Corporation completed the acquisition of the southern and central New Jersey franchise of Chemical Bank for approximately $485 million in cash. The transaction added total assets of $3.2 billion and retail core deposits of $2.7 billion. PNC Bank Corp., headquartered in Pittsburgh, is one of the largest financial services organizations in the United States, with banking subsidiaries in Pennsylvania, New Jersey, Delaware, Ohio, Kentucky, Indiana, Massachusetts, and Florida. Its major businesses include corporate banking; consumer banking; mortgage banking; and asset management. [TABULAR MATERIAL FOLLOWS] 5 Page 5 PNC BANK CORP. AND SUBSIDIARIES Consolidated Financial Highlights
Three months ended Nine months ended September 30 September 30 ------------------------- --------------------------- 1995 1994 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------------ FINANCIAL PERFORMANCE (Dollars in thousands, except per share data) Net interest income (taxable-equivalent basis) $372,796 $503,240 $1,135,535 $1,510,407 Net income 149,046 187,998 411,685 581,532 Fully diluted earnings per common share .64 .79 1.77 2.44 Return on average total assets .96% 1.20% .89% 1.29% Return on average common shareholders' equity 13.42 17.15 12.61 18.04 Net interest margin 2.61 3.45 2.64 3.57 After-tax profit margin 22.58 25.60 21.39 26.10 Overhead ratio 65.57 59.36 67.36 57.49 SELECTED AVERAGE BALANCES (In millions) Assets $61,716 $61,988 $61,775 $60,204 Earnings assets 57,099 58,275 57,255 56,518 Loans, net of unearned income 36,824 34,494 36,116 33,025 Securities 18,805 22,422 19,848 21,844 Deposits 34,252 33,982 33,702 32,665 Borrowings 13,294 11,346 13,299 11,284 Shareholders' equity 4,425 4,360 4,384 4,320 ==================================================================================================================================
September 30 June 30 December 31 September 30 1995 1995 1994 1994 - ------------------------------------------------------------------------------------------------------------------------------------ SELECTED RATIOS Capital Leverage 6.45% 6.29% 6.59% 6.82% Common shareholders' equity to total assets 7.33 7.04 6.82 6.92 Average common shareholders' equity to average total assets 7.07 7.03 7.09 7.14 Asset quality Net charge-offs to average loans .22 .23 .29 .27 Nonperforming loans to total loans .74 .84 .90 1.03 Nonperforming assets to total loans and foreclosed assets 1.10 1.21 1.25 1.44 Allowance for credit losses to total loans 2.56 2.62 2.83 2.89 Allowance for credit losses to nonperforming loans 346.28 311.53 314.17 281.35 Book value per common share As reported $19.62 $19.37 $18.76 $18.87 Excluding net unrealized securities losses 19.82 19.55 19.26 19.46 ===================================================================================================================================
-more- 6 PNC BANK CORP. AND SUBSIDIARIES Page 6 Condensed Consolidated Statement of Income
Three months ended Nine months ended September 30 September 30 -------------------------- --------------------------- In thousands, except per share data 1995 1994 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------------ INTEREST INCOME Loans and fees on loans $749,019 $652,127 $2,194,025 $1,818,974 Securities 262,974 335,117 841,761 947,572 Other 27,481 20,325 70,410 71,121 - ------------------------------------------------------------------------------------------------------------------------------------ Total interest income 1,039,474 1,007,569 3,106,196 2,837,667 INTEREST EXPENSE Deposits 329,378 249,532 941,996 664,777 Borrowed funds 210,868 131,161 629,735 338,394 Notes and debentures 134,435 131,921 423,370 349,241 - ------------------------------------------------------------------------------------------------------------------------------------ Total interest expense 674,681 512,614 1,995,101 1,352,412 - ------------------------------------------------------------------------------------------------------------------------------------ Net interest income 364,793 494,955 1,111,095 1,485,255 Provision for credit losses 10,078 60,123 - ------------------------------------------------------------------------------------------------------------------------------------ Net interest income less provision for credit losses 364,793 484,877 1,111,095 1,425,132 NONINTEREST INCOME Investment management and trust 96,657 72,354 273,306 218,815 Service charges, fees and commissions 91,717 95,094 272,125 275,135 Mortgage banking 51,333 78,911 146,653 159,274 Net securities gains (losses) 44 (44,202) 9,080 (13,895) Other 47,536 28,942 88,270 78,561 - ------------------------------------------------------------------------------------------------------------------------------------ Total noninterest income 287,287 231,099 789,434 717,890 NONINTEREST EXPENSE Staff expense 204,841 208,128 611,289 618,999 Net occupancy and equipment 69,314 67,880 206,073 200,022 Other 158,647 159,905 479,222 462,033 - ------------------------------------------------------------------------------------------------------------------------------------ Total noninterest expense 432,802 435,913 1,296,584 1,281,054 - ------------------------------------------------------------------------------------------------------------------------------------ Income before income taxes 219,278 280,063 603,945 861,968 Applicable income taxes 70,232 92,065 192,260 280,436 - ------------------------------------------------------------------------------------------------------------------------------------ Net income $149,046 $187,998 $411,685 $581,532 ==================================================================================================================================== EARNINGS PER COMMON SHARE Primary $.65 $.79 $1.78 $2.45 Fully diluted .64 .79 1.77 2.44 CASH DIVIDENDS DECLARED PER COMMON SHARE .35 .32 1.05 .96 AVERAGE COMMON SHARES OUTSTANDING Primary 229,837 236,914 230,869 236,954 Fully diluted 231,875 238,735 233,087 238,807 ====================================================================================================================================
-more- 7 PNC BANK CORP. AND SUBSIDIARIES Page 7 Details of Net Interest Income
Three months ended Nine months ended September 30 September 30 Taxable-equivalent basis ----------------------------- ----------------------------- In thousands 1995 1994 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------------ Net interest income before swaps and caps Interest income $1,063,809 $978,784 $3,173,738 $2,739,946 Loan fees 19,421 19,543 54,913 54,321 Taxable-equivalent adjustment 8,003 8,285 24,440 25,152 - ------------------------------------------------------------------------------------------------------------------------------------ Total interest income 1,091,233 1,006,612 3,253,091 2,819,419 Interest expense 669,010 527,250 1,977,352 1,428,949 - ------------------------------------------------------------------------------------------------------------------------------------ Net interest income before swaps and caps 422,223 479,362 1,275,739 1,390,470 Effect of swaps and caps on Interest income (43,756) 9,242 (122,455) 43,400 Interest expense 5,671 (14,636) 17,749 (76,537) - ------------------------------------------------------------------------------------------------------------------------------------ Total swaps and caps (49,427) 23,878 (140,204) 119,937 - ------------------------------------------------------------------------------------------------------------------------------------ Net interest income $372,796 $503,240 $1,135,535 $1,510,407 ====================================================================================================================================
Three months ended Taxable-equivalent basis September 30 June 30 March 31 December 31 September 30 In thousands 1995 1995 1995 1994 1994 - ------------------------------------------------------------------------------------------------------------------------------------ Net interest income before swaps and caps Interest income $1,063,809 $1,065,165 $1,044,764 $1,026,612 $978,784 Loan fees 19,421 18,922 16,570 15,011 19,543 Taxable-equivalent adjustment 8,003 8,243 8,194 8,371 8,285 - ------------------------------------------------------------------------------------------------------------------------------------ Total interest income 1,091,233 1,092,330 1,069,528 1,049,994 1,006,612 Interest expense 669,010 671,750 636,592 598,060 527,250 - ------------------------------------------------------------------------------------------------------------------------------------ Net interest income before swaps and caps 422,223 420,580 432,936 451,934 479,362 Effect of swaps and caps on Interest income (43,756) (41,448) (37,251) (17,478) 9,242 Interest expense 5,671 8,561 3,517 1,734 (14,636) - ------------------------------------------------------------------------------------------------------------------------------------ Total swaps and caps (49,427) (50,009) (40,768) (19,212) 23,878 - ------------------------------------------------------------------------------------------------------------------------------------ Net interest income $372,796 $370,571 $392,168 $432,722 $503,240 ====================================================================================================================================
-more- 8 PNC BANK CORP. AND SUBSIDIARIES Page 8 Details of Net Interest Margin
Three months ended Nine months ended September 30 September 30 ----------------------- ---------------------- Taxable-equivalent basis 1995 1994 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------------ Interest rate spread before swaps and caps Book-basis yield on earning assets 7.38% 6.69% 7.37% 6.48% Effect of loan fees .14 .13 .13 .13 Taxable-equivalent adjustment .06 .06 .06 .06 - ------------------------------------------------------------------------------------------------------------------------------------ Taxable-equivalent yield on earning assets 7.58 6.88 7.56 6.67 Rate on interest-bearing liabilities 5.34 4.16 5.29 3.93 - ------------------------------------------------------------------------------------------------------------------------------------ Interest rate spread before swaps and caps 2.24 2.72 2.27 2.74 Effect of Noninterest-bearing sources .71 .55 .69 .52 Interest rate swaps and caps on Interest income (.30) .06 (.28) .10 Interest expense .04 (.12) .04 (.21) - ------------------------------------------------------------------------------------------------------------------------------------ Total swaps and caps (.34) .18 (.32) .31 - ------------------------------------------------------------------------------------------------------------------------------------ Net interest margin 2.61% 3.45% 2.64% 3.57% ====================================================================================================================================
Three-months ended September 30 June 30 March 31 December 31 September 30 Taxable-equivalent basis 1995 1995 1995 1994 1994 - ------------------------------------------------------------------------------------------------------------------------------------ Interest rate spread before swaps and caps Book-basis yield on earnings assets 7.38% 7.42% 7.29% 6.91% 6.69% Effect of loan fees .14 .13 .11 .10 .13 Taxable-equivalent adjustment .06 .06 .06 .06 .06 - ------------------------------------------------------------------------------------------------------------------------------------ Taxable-equivalent yield on earnings assets 7.58 7.61 7.46 7.07 6.88 Rate on interest-bearing liabilities 5.34 5.37 5.13 4.64 4.16 - ------------------------------------------------------------------------------------------------------------------------------------ Interest rate spread before swaps and caps 2.24 2.24 2.33 2.43 2.72 Effect of Noninterest-bearing sources .71 .69 .67 .62 .55 Interest rate swaps and caps on Interest income (.30) (.28) (.25) (.12) .06 Interest expense .04 .07 .03 .01 (.12) - ------------------------------------------------------------------------------------------------------------------------------------ Total swaps and caps (.34) (.35) (.28) (.13) .18 - ------------------------------------------------------------------------------------------------------------------------------------ Net interest margin 2.61% 2.58% 2.72% 2.92% 3.45% ====================================================================================================================================
-more- 9 PNC BANK CORP. AND SUBSIDIARIES Page 9 Details of Noninterest Income
NONINTEREST INCOME Three months ended Nine months ended September 30 September 30 --------------------------------- ------------------------------- In thousands 1995 1994 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------------ Investment management and trust Trust $60,229 $47,853 $173,425 $146,658 Mutual funds 36,428 24,501 99,881 72,157 - ------------------------------------------------------------------------------------------------------------------------------------ Total investment management and trust 96,657 72,354 273,306 218,815 Service charges, fees and commissions Deposit account and corporate services 40,808 41,931 119,146 124,156 Credit card and merchant services 8,459 13,723 32,728 40,520 Corporate finance 11,543 12,075 33,795 33,302 Brokerage 11,175 9,306 31,236 26,529 Other services 19,732 18,059 55,220 50,628 - ------------------------------------------------------------------------------------------------------------------------------------ Total service charges, fees and commissions 91,717 95,094 272,125 275,135 Mortgage banking Servicing 30,200 32,439 91,084 93,140 Sales of servicing 10,745 34,747 32,675 51,338 Marketing 10,388 11,725 22,894 14,796 - ------------------------------------------------------------------------------------------------------------------------------------ Total mortgage banking 51,333 78,911 146,653 159,274 Other 47,536 28,942 88,270 78,561 - ------------------------------------------------------------------------------------------------------------------------------------ Total noninterest income before securities transactions 287,243 275,301 780,354 731,785 Net securities gains (losses) 44 (44,202) 9,080 (13,895) - ------------------------------------------------------------------------------------------------------------------------------------ Total $287,287 $231,099 $789,434 $717,890 ====================================================================================================================================
Three months ended September 30 June 30 March 31 December 31 September 30 In thousands 1995 1995 1995 1994 1994 - ------------------------------------------------------------------------------------------------------------------------------------ Investment management and trust Trust $60,229 $62,229 $50,967 $47,402 $47,853 Mutual funds 36,428 35,280 28,173 25,835 24,501 - ------------------------------------------------------------------------------------------------------------------------------------ Total investment management and trust 96,657 97,509 79,140 73,237 72,354 Service charges, fees and commissions Deposit account and corporate services 40,808 38,796 39,542 40,064 41,931 Credit card and merchant services 8,459 10,094 14,175 15,500 13,723 Corporate finance 11,543 11,545 10,707 11,414 12,075 Brokerage 11,175 10,818 9,243 9,010 9,306 Other services 19,732 17,731 17,757 19,023 18,059 - ------------------------------------------------------------------------------------------------------------------------------------ Total service charges, fees and commissions 91,717 88,984 91,424 95,011 95,094 Mortgage banking Servicing 30,200 29,761 31,123 28,636 32,439 Sales of servicing 10,745 9,672 12,258 9,235 34,747 Marketing 10,388 11,237 1,269 1,403 11,725 - ------------------------------------------------------------------------------------------------------------------------------------ Total mortgage banking 51,333 50,670 44,650 39,274 78,911 Other 47,536 20,089 20,645 18,253 28,942 - ------------------------------------------------------------------------------------------------------------------------------------ Total noninterest income before securities transactions 287,243 257,252 235,859 225,775 275,301 Net securities gains (losses) 44 7,782 1,254 (121,024) (44,202) - ------------------------------------------------------------------------------------------------------------------------------------ Total $287,287 $265,034 $237,113 $104,751 $231,099 ====================================================================================================================================
-more- 10 PNC BANK CORP. AND SUBSIDIARIES Page 10 Details of Noninterest Expense
NONINTEREST EXPENSE Three months ended Nine months ended September 30 September 30 -------------------------------- --------------------------------- In thousands 1995 1994 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------------ Compensation $169,858 $168,433 $500,065 $497,835 Employee benefits 34,983 39,695 111,224 121,164 - ------------------------------------------------------------------------------------------------------------------------------------ Total staff expense 204,841 208,128 611,289 618,999 Net occupancy 35,013 34,545 104,725 101,107 Equipment 34,301 33,335 101,348 98,915 Amortization of intangible assets 23,230 21,648 66,416 59,478 Federal deposit insurance 1,885 18,406 38,534 54,745 Taxes other than income 12,046 11,533 36,451 33,411 Other 121,486 108,318 337,821 314,399 - ------------------------------------------------------------------------------------------------------------------------------------ Total $432,802 $435,913 $1,296,584 $1,281,054 ====================================================================================================================================
Three months ended September 30 June 30 March 31 December 31 September 30 In thousands 1995 1995 1995 1994 1994 - ------------------------------------------------------------------------------------------------------------------------------------ Compensation $169,858 $167,100 $163,107 $188,507 $168,433 Employee benefits 34,983 37,490 38,751 28,166 39,695 - ------------------------------------------------------------------------------------------------------------------------------------ Total staff expense 204,841 204,590 201,858 216,673 208,128 Net occupancy 35,013 35,008 34,704 46,606 34,545 Equipment 34,301 32,901 34,146 33,809 33,335 Amortization of intangible assets 23,230 22,040 21,146 22,759 21,648 Federal deposit insurance 1,885 18,273 18,376 19,157 18,406 Taxes other than income 12,046 12,348 12,057 10,816 11,533 Other 121,486 101,243 115,092 138,861 108,318 - ------------------------------------------------------------------------------------------------------------------------------------ Total $432,802 $426,403 $437,379 $488,681 $435,913 ====================================================================================================================================
- more - 11 PNC BANK CORP. AND SUBSIDIARIES Page 11 Condensed Consolidated Balance Sheet
September 30 December 31 September 30 In millions, except share data 1995 1994 1994 - ----------------------------------------------------------------------------------------------------------------------------------- ASSETS Cash and due from banks $2,124 $2,592 $1,938 Short-term investments 637 809 782 Loans held for sale 901 487 517 Securities available for sale 2,228 3,457 4,985 Investment securities, fair value of $15,787, $16,233 and $17,113 16,035 17,464 17,976 Loans, net of unearned income of $225, $240 and $223 36,815 35,407 35,700 Allowance for credit losses (943) (1,002) (1,030) - ----------------------------------------------------------------------------------------------------------------------------------- Net loans 35,872 34,405 34,670 Other 3,421 4,931 3,136 - ----------------------------------------------------------------------------------------------------------------------------------- Total assets $61,218 $64,145 $64,004 =================================================================================================================================== LIABILITIES Deposits Noninterest-bearing $6,496 $6,992 $6,572 Interest-bearing 26,517 28,019 26,997 - ----------------------------------------------------------------------------------------------------------------------------------- Total deposits 33,013 35,011 33,569 Borrowed funds 12,683 11,608 12,375 Notes and debentures 9,616 11,754 11,839 Other 1,402 1,378 1,775 - ----------------------------------------------------------------------------------------------------------------------------------- Total liabilities 56,714 59,751 59,558 - ----------------------------------------------------------------------------------------------------------------------------------- SHAREHOLDERS' EQUITY Realized shareholders' equity 4,549 4,513 4,584 Net unrealized securities losses (45) (119) (138) - ----------------------------------------------------------------------------------------------------------------------------------- Total shareholders' equity 4,504 4,394 4,446 - ----------------------------------------------------------------------------------------------------------------------------------- Total liabilities and shareholders' equity $61,218 $64,145 $64,004 =================================================================================================================================== COMMON SHAREHOLDERS' EQUITY $4,486 $4,375 $4,427 COMMON SHARES OUTSTANDING 228,598,590 233,248,508 234,565,250 ===================================================================================================================================
-more- 12 PNC BANK CORP. AND SUBSIDIARIES Page 12 Condensed Consolidated Average Balance Sheet
Three months ended Nine months ended September 30 September 30 ------------------------------------ ----------------------------------- In millions 1995 1994 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Interest-earning assets Short-term investments $518 $744 $635 $821 Securities available for sale 2,445 5,488 3,009 7,810 Investment securities 16,360 16,934 16,839 14,034 Loans, net of unearned income Commercial 12,660 12,454 12,425 11,963 Real estate project 1,713 1,621 1,666 1,693 Real estate mortgage 11,761 9,836 11,345 9,293 Consumer 9,088 8,993 9,039 8,689 Other 1,602 1,590 1,641 1,387 - ------------------------------------------------------------------------------------------------------------------------------------ Total loans, net of unearned income 36,824 34,494 36,116 33,025 Other interest-earning assets 952 615 656 828 - ------------------------------------------------------------------------------------------------------------------------------------ Total interest-earning assets 57,099 58,275 57,255 56,518 Other 4,617 3,713 4,520 3,686 - ------------------------------------------------------------------------------------------------------------------------------------ Total assets $61,716 $61,988 $61,775 $60,204 ==================================================================================================================================== LIABILITIES Interest-bearing liabilities Deposits $27,800 $27,657 $27,391 $26,507 Borrowed funds 13,294 11,346 13,299 11,284 Notes and debentures 8,459 11,358 9,132 10,848 - ------------------------------------------------------------------------------------------------------------------------------------ Total interest-bearing liabilities 49,553 50,361 49,822 48,639 Noninterest-bearing deposits 6,452 6,325 6,311 6,158 Other 1,286 942 1,258 1,087 - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 57,291 57,628 57,391 55,884 - ------------------------------------------------------------------------------------------------------------------------------------ SHAREHOLDERS' EQUITY 4,425 4,360 4,384 4,320 - ---------------------------------------------------------------------------------------------------------------------------------- Total liabilities and shareholders' equity $61,716 $61,988 $61,775 $60,204 ==================================================================================================================================== COMMON SHAREHOLDERS' EQUITY $4,407 $4,341 $4,366 $4,300 ====================================================================================================================================
Three months ended September 30 June 30 March 31 December 31 September 30 In thousands 1995 1995 1995 1994 1994 - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Interest-earning assets Securities available for sale $2,445 $2,967 $3,626 $5,172 $5,488 Investment securities 16,360 16,891 17,277 17,751 16,934 Loans, net of unearned income 36,824 36,191 35,315 34,955 34,494 Other interest-earning assets 1,470 1,171 1,230 1,295 1,359 - ------------------------------------------------------------------------------------------------------------------------------------ Total interest-earning assets 57,099 57,220 57,448 59,173 58,275 Other 4,617 4,698 4,245 3,779 3,713 - ------------------------------------------------------------------------------------------------------------------------------------ Total assets $61,716 $61,918 $61,693 $62,952 $61,988 ==================================================================================================================================== LIABILITIES Interest-bearing liabilities Deposits $27,800 $27,425 $26,937 $26,943 $27,657 Borrowed funds 13,294 13,281 13,328 11,642 11,346 Notes and debentures 8,459 9,213 9,736 12,593 11,358 - ------------------------------------------------------------------------------------------------------------------------------------ Total interest-bearing liabilities 49,553 49,919 50,001 51,178 50,361 Noninterest-bearing deposits 6,452 6,362 6,115 6,466 6,325 Other 1,286 1,268 1,220 922 942 - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 57,291 57,549 57,336 58,566 57,628 - ------------------------------------------------------------------------------------------------------------------------------------ SHAREHOLDERS' EQUITY 4,425 4,369 4,357 4,386 4,360 - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities and shareholders' equity $61,716 $61,918 $61,693 $62,952 $61,988 ====================================================================================================================================
-more- 13 PNC BANK CORP. AND SUBSIDIARIES Page 13 Asset Quality Data
ALLOWANCE FOR CREDIT LOSSES Three months ended Nine months ended September 30 September 30 ---------------------------- ---------------------------- In millions 1995 1994 1995 1994 - ---------------------------------------------------------------------------------------------------------------------------------- Beginning balance $961 $1,036 $1,002 $972 Charge-offs (33) (39) (107) (120) Recoveries 15 23 47 53 - ---------------------------------------------------------------------------------------------------------------------------------- Net charge-offs (18) (16) (60) (67) Provision for credit losses 10 60 Acquisitions 1 65 - ---------------------------------------------------------------------------------------------------------------------------------- Ending balance $943 $1,030 $943 $1,030 ==================================================================================================================================
NONPERFORMING ASSETS September 30 March 31 December 31 September 30 In millions 1995 1995 1994 1994 - ---------------------------------------------------------------------------------------------------------------------------------- Nonaccrual loans Commercial $93 $110 $143 $176 Real estate project 82 95 70 79 Real estate mortgage Commercial 40 44 44 57 Residential 53 52 53 50 - ---------------------------------------------------------------------------------------------------------------------------------- Total nonaccrual loans 268 301 310 362 Restructured loans 5 7 9 4 - ---------------------------------------------------------------------------------------------------------------------------------- Total nonperforming loans 273 308 319 366 Foreclosed assets Real estate project 87 88 77 91 Real estate mortgage Commercial 3 4 5 5 Residential 24 25 21 26 Other 21 21 24 27 - ---------------------------------------------------------------------------------------------------------------------------------- Total foreclosed assets 135 138 127 149 - ---------------------------------------------------------------------------------------------------------------------------------- Total $408 $446 $446 $515 ==================================================================================================================================
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