-----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, CMp8dJXc34PkQNjhKytYj6q8Yn63W0CJrK6G4JPdiyCk7E0FQg7vA1Q9U3JQxNkN GzIpbrtUxv0Allo2KRjljg== 0000950128-97-001005.txt : 19971016 0000950128-97-001005.hdr.sgml : 19971016 ACCESSION NUMBER: 0000950128-97-001005 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971015 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19971015 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: SEC FILE NUMBER: 001-09718 FILM NUMBER: 97696065 BUSINESS ADDRESS: STREET 1: ONE PNC PLAZA STREET 2: 249 FIFTH AVE CITY: PITTSBURGH STATE: PA ZIP: 15265 BUSINESS PHONE: 4127622281 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 CORP. 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 OCTOBER 15, 1997 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) PNC BANK CORP. (Exact name of registrant as specified in its charter) COMMISSION FILE NUMBER 1-9718 PENNSYLVANIA 25-1435979 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) ONE PNC PLAZA 249 FIFTH AVENUE PITTSBURGH, PENNSYLVANIA 15222-2707 (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 Third Quarter 1997 Financial Results On October 15, 1997, PNC Bank Corp. ("Corporation") reported results of operations for the three months and nine months ended September 30, 1997. A copy of the earnings press release issued by the Corporation is attached as Exhibit 99 and incorporated herein by reference. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits The exhibit listed on the Exhibit Index on page 3 of this Form 8-K is filed herewith. 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 15, 1997 By: /s/ ROBERT L. HAUNSCHILD ------------------------ Robert L. Haunschild Senior Vice President and Chief Financial Officer 2 3 EXHIBIT INDEX 99 Earnings press release issued by the Corporation on October 15, 1997, with respect to the results of operations for the three months and nine months ended September 30, 1997, is filed herewith. 3 EX-99 2 PNC BANK CORP. 1 Exhibit 99 CONTACTS: MEDIA: - ------ Jonathan Williams (412) 762-4550 pubrela@pncmail.com INVESTORS: - ---------- William H. Callihan (412) 762-8257 invrela@pncmail.com PNC BANK CORP. REPORTS EPS OF $0.83 FOR THE THIRD QUARTER 1997 PITTSBURGH, Oct. 15, 1997 -- PNC Bank Corp. (NYSE: PNC) today reported third quarter 1997 earnings of $0.83 per fully diluted share compared with $0.68 per fully diluted share in the third quarter of 1996. Net income was $262 million compared with $234 million in the year-earlier period. Returns on average common shareholders' equity and average assets were 20.11% and 1.47%, respectively, compared with 16.16% and 1.34% in the prior-year quarter. Results for 1996 include a charge for the one-time special assessment to recapitalize the Savings Association Insurance Fund ("SAIF"). Excluding the SAIF assessment, earnings totaled $256 million or $0.75 per fully diluted share for the third quarter of 1996. "Our third quarter results reflect continuing progress in the strategic transition of our organization," said Thomas H. O'Brien, chairman and chief executive officer. "We have demonstrated ongoing discipline in managing our traditional banking franchise while investing heavily in national, fee-driven businesses such as Asset Management, Capital Markets and Treasury Management. Noninterest income from these and other businesses now contributes 41% of total revenues." -more- 2 PNC Bank Corp. Reports EPS Of $0.83 For The Third Quarter 1997--Page 2 HIGHLIGHTS * Revenue increased 11% in the quarter-to-quarter comparison as the net interest margin widened to 3.89%. * Revenues from fee-based businesses grew 24% in the quarter-to-quarter comparison. * Loans outstanding to AAA members totaled $2.2 billion and positively impacted net interest margin during the third quarter. * Asset quality remained strong. Nonperforming assets were 0.73% of loans and foreclosed assets at Sept. 30, 1997, declining $48 million during the quarter and $107 million since last year. Net charge-offs were 0.54% of average loans. * On Oct. 2, 1997, the board of directors approved a 5.4% increase in the fourth quarter dividend to $0.39 per common share. INCOME STATEMENT REVIEW Taxable-equivalent net interest income increased $10 million to $627 million for the third quarter of 1997 and the net interest margin widened to 3.89% compared with 3.85% in the year-earlier period. These increases primarily resulted from a higher-yielding earning asset mix, which more than offset the cost of common share repurchases. Compared with the second quarter of 1997, net interest income increased $7 million and net interest margin was 5 basis points higher primarily due to the expiration of lower introductory credit card rates. The provision for credit losses was $20 million for the third quarter of 1997. No provision was recorded in the prior-year quarter. Noninterest income increased $97 million to $446 million in the third quarter of 1997 compared with $348 million in the year-earlier period. Growth in investment advisory, private banking and mutual fund servicing contributed to a $29 million or 23% increase in asset management fees. Managed assets increased to approximately $127 billion at Sept. 30, 1997 compared with $105 billion a year ago. Service fees increased $31 million or 21% primarily from growth in credit card, treasury management and consumer services. -more- 3 PNC Bank Corp. Reports EPS Of $0.83 For The Third Quarter 1997--Page 3 Mortgage banking revenue grew primarily due to higher marketing gains. Mortgage originations totaled $1.7 billion in the third quarter of 1997 compared with $1.3 billion in the year-earlier period. At Sept. 30, 1997, the corporation serviced approximately $41.0 billion of mortgages, including $31.3 billion serviced for others. Other noninterest income increased $36 million in the comparison primarily due to higher venture capital and asset securitization income. Noninterest expense increased $43 million to $639 million in the third quarter of 1997 largely due to $28 million of incremental costs associated with AAA and credit card-related initiatives. The remaining increase was attributable to higher incentive compensation commensurate with revenue growth and the cost of trust preferred capital securities. The efficiency ratio improved to 59.5% for the third quarter of 1997 compared with 61.7% a year ago. BALANCE SHEET REVIEW Total assets were $71.8 billion at Sept. 30, 1997. Average earning assets were substantially unchanged at $64.0 billion as loan growth was offset by continued securities portfolio reduction. Average securities declined $4.9 billion to $8.2 billion and represented 12.8% of average earning assets compared with 20.6% a year ago. Average loans grew approximately 9% to $53.2 billion, a $4.5 billion increase from the prior-year quarter. Growth in credit cards, residential mortgages and commercial loans were partially offset by reductions in indirect lending and the impact of loan securitizations. Loans represented 83.2% of average earning assets compared with 76.7% a year ago. Average interest-bearing funding increased $1.1 billion to $53.4 billion in the third quarter of 1997. Deposits represented 63.2% of total sources of funds for the third quarter of 1997 compared with 64.3% a year ago. During the third quarter of 1997, the corporation further diversified its funding base by initiating a $2.5 billion Euro medium-term bank note program. The corporation issued $500 million of bank notes under this program subsequent to quarter end. -more- 4 PNC Bank Corp. Reports EPS Of $0.83 For The Third Quarter 1997--Page 4 Shareholders' equity totaled $5.5 billion at Sept. 30, 1997. The leverage ratio was 7.5% and Tier I and total risk-based capital ratios are estimated to be 7.8% and 11.5%, respectively. During the third quarter of 1997, the corporation repurchased 3.3 million common shares. On Oct. 2, 1997, the board of directors approved a 5.4% increase in the common dividend to $0.39 per share. Nonperforming assets declined to $394 million at Sept. 30, 1997 compared with $442 million at June 30, 1997 and $501 million at Sept. 30, 1996. The ratio of nonperforming assets to total loans and foreclosed assets was 0.73% at Sept. 30, 1997, 0.83% at June 30, 1997 and 1.01% a year ago. The allowance for credit losses was $1.0 billion at Sept. 30, 1997 and represented 324% of nonperforming loans compared with 306% a year ago. Net charge-offs were $73 million or 0.54% of average loans in the third quarter of 1997 compared with $37 million and 0.30%, respectively, in the year-earlier period. The increase was primarily associated with higher credit card outstandings. YEAR TO DATE RESULTS Earnings per fully diluted share were $2.43 for the first nine months of 1997 compared with $2.08 for 1996. Net income increased 9% to $787 million for the first nine months of 1997 compared with $720 million a year ago. Returns on average common shareholders' equity and average assets were 19.93% and 1.49%, respectively, compared with 16.71% and 1.35%, respectively, for the first nine months of 1996. Excluding the one-time SAIF assessment, earnings for the first nine months of 1996 totaled $743 million or $2.15 per fully diluted share. 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. PNC Bank Corp.'s businesses include consumer banking, private banking, corporate banking, mortgage banking, real estate banking and asset management. Visit PNC Bank on the World Wide Web at www.pncbank.com [TABULAR MATERIAL FOLLOWS] 5 PNC BANK CORP. AND SUBSIDIARIES Page 5 Consolidated Financial Highlights
Three months ended Nine months ended September 30 September 30 ------------------------------------------------------------- 1997 1996 1997 1996 - ------------------------------------------------------------------------------------------------------------------------------------ FINANCIAL PERFORMANCE (in thousands, except per share data) Revenue Net interest income (taxable-equivalent basis) $627,431 $616,938 $1,885,295 $1,852,972 Noninterest income 445,650 348,374 1,304,173 1,006,521 Total revenue 1,073,081 965,312 3,189,468 2,859,493 Net income 261,595 233,953 786,979 720,323 Per common share Fully diluted earnings .83 .68 2.43 2.08 Cash dividends declared .37 .35 1.11 1.05 SELECTED RATIOS Return on Average common shareholders' equity 20.11% 16.16% 19.93% 16.71% Average assets 1.47 1.34 1.49 1.35 Net interest margin 3.89 3.85 3.91 3.77 After-tax profit margin 24.38 24.24 24.67 25.19 Efficiency ratio 59.51 61.68 60.00 60.34 Net charge-offs to average loans .54 .30 .49 .29
September 30 June 30 December 31 September 30 1997 1997 1996 1996 - ------------------------------------------------------------------------------------------------------------------------------------ BALANCE SHEET DATA (in millions) Assets $71,828 $71,973 $73,260 $69,662 Earning assets 64,208 64,297 65,439 62,533 Loans, net of unearned income 53,651 53,497 51,798 49,443 Securities 8,000 8,396 11,917 11,243 Deposits 44,788 45,216 45,676 45,430 Borrowed funds 19,052 19,066 19,604 16,650 Shareholders' equity 5,476 5,384 5,869 5,798 Common shareholders' equity 5,161 5,068 5,553 5,781 CAPITAL RATIOS Leverage 7.46% 7.35% 7.70% 7.18% Common shareholders' equity to assets 7.18 7.04 7.58 8.30 ASSET QUALITY RATIOS Nonperforming assets to loans and foreclosed assets .73 .83 .88 1.01 Allowance for credit losses to loans 1.91 2.01 2.25 2.33 Allowance for credit losses to nonperforming loans 324.25 310.34 334.40 306.11 Book value per common share $16.92 $16.51 $17.13 $17.23 ====================================================================================================================================
-more- 6 PNC BANK CORP. AND SUBSIDIARIES Page 6 Consolidated Statement of Income
Three months ended Nine months ended September 30 September 30 -------------------------------------------------------- In thousands, except per share data 1997 1996 1997 1996 - ------------------------------------------------------------------------------------------------------------------------------- INTEREST INCOME Loans and fees on loans $1,101,508 $979,050 $3,236,193 $2,931,715 Securities 125,347 207,729 420,587 677,422 Other 43,489 29,851 112,880 105,973 ------------ ------------ ------------ ------------- Total interest income 1,270,344 1,216,630 3,769,660 3,715,110 INTEREST EXPENSE Deposits 372,860 350,912 1,087,015 1,073,786 Borrowed funds 277,567 256,788 819,628 814,757 ------------ ------------ ------------ ------------- Total interest expense 650,427 607,700 1,906,643 1,888,543 ------------ ------------ ------------ ------------- Net interest income 619,917 608,930 1,863,017 1,826,567 Provision for credit losses 20,000 45,000 ------------ ------------ ------------ ------------- Net interest income less provision for credit losses 599,917 608,930 1,818,017 1,826,567 NONINTEREST INCOME Asset management 150,805 122,299 436,395 367,691 Service fees 175,146 144,446 519,664 408,313 Mortgage banking 46,551 34,400 110,745 106,140 Other 75,805 39,507 210,230 109,808 ------------ ------------ ------------ ------------- Total noninterest income before net securities gains (losses) 448,307 340,652 1,277,034 991,952 Net securities gains (losses) (2,657) 7,722 27,139 14,569 ------------ ------------ ------------ ------------- Total noninterest income 445,650 348,374 1,304,173 1,006,521 NONINTEREST EXPENSE Staff expense 298,974 277,761 895,836 840,699 Net occupancy and equipment 90,704 90,229 271,769 275,694 Amortization 48,459 29,012 117,817 80,738 Other 187,229 198,390 598,157 528,229 Distributions on capital securities 13,192 30,015 ------------ ------------ ------------ ------------- Total noninterest expense 638,558 595,392 1,913,594 1,725,360 Income before income taxes 407,009 361,912 1,208,596 1,107,728 Applicable income taxes 145,414 127,959 421,617 387,405 ------------ ------------ ------------ ------------- Net income $261,595 $233,953 $786,979 $720,323 - ------------------------------------------------------------------------------------------------------------------------------- Net income applicable to common shareholders $257,813 $234,803 $775,649 $722,897 EARNINGS PER COMMON SHARE Primary $.83 $.69 $2.46 $2.10 Fully diluted .83 .68 2.43 2.08 CASH DIVIDENDS DECLARED PER COMMON SHARE .37 .35 1.11 1.05 AVERAGE COMMON SHARES OUTSTANDING Primary 308,049 340,535 314,603 342,143 Fully diluted 312,253 345,173 319,040 346,958 ===============================================================================================================================
-more- 7 PNC BANK CORP. AND SUBSIDIARIES Page 7 Details of Net Interest Income
Three months ended Nine months ended NET INTEREST INCOME September 30 September 30 Taxable-equivalent basis -------------------------------------------------------- In thousands 1997 1996 1997 1996 - ------------------------------------------------------------------------------------------------------------------------------- Interest income Loans $1,107,250 $985,235 $3,253,317 $2,951,177 Securities 127,053 209,526 425,541 684,196 Other interest-earning assets 43,555 29,877 113,080 106,142 ------------ ------------ ------------ ------------- Total interest income 1,277,858 1,224,638 3,791,938 3,741,515 Interest expense Deposits 372,860 350,912 1,087,015 1,073,786 Borrowed funds 277,567 256,788 819,628 814,757 ------------ ------------ ------------ ------------- Total interest expense 650,427 607,700 1,906,643 1,888,543 ------------ ------------ ------------ ------------- Net interest income $627,431 $616,938 $1,885,295 $1,852,972 ===============================================================================================================================
Taxable-equivalent basis September 30 June 30 March 31 December 31 September 30 Three months ended - in thousands 1997 1997 1997 1996 1996 - ------------------------------------------------------------------------------------------------------------------------------- Interest income Loans $1,107,250 $1,084,532 $1,061,535 $1,017,982 $985,235 Securities 127,053 140,618 157,870 183,013 209,526 Other interest-earning assets 43,555 39,416 30,109 30,533 29,877 ----------- ------------ ------------ ------------ ------------- Total interest income 1,277,858 1,264,566 1,249,514 1,231,528 1,224,638 Interest expense Deposits 372,860 368,000 346,155 354,985 350,912 Borrowed funds 277,567 275,985 266,076 250,906 256,788 ----------- ------------ ------------ ------------ ------------- Total interest expense 650,427 643,985 612,231 605,891 607,700 ----------- ------------ ------------ ------------ ------------- Net interest income $627,431 $620,581 $637,283 $625,637 $616,938 ===============================================================================================================================
-more- 8 PNC BANK CORP. AND SUBSIDIARIES Page 8 Details of Net Interest Margin NET INTEREST MARGIN
Three months ended Nine months ended September 30 September 30 ----------------------------------------------------- Taxable-equivalent basis 1997 1996 1997 1996 - ------------------------------------------------------------------------------------------------------------------------------- Rates earned/paid Yield on earning assets Loans 8.23% 8.01% 8.21% 8.02% Securities 6.17 6.39 6.23 6.41 Other interest-earning assets 6.83 6.87 6.75 6.54 ------------ ------------ ------------ ------------- Total yield on earning assets 7.92 7.64 7.87 7.62 Rate on interest-bearing liabilities Deposits 4.23 4.01 4.16 4.06 Borrowed funds 5.92 5.83 5.84 5.74 ------------ ------------ ------------ ------------- Total rate on interest-bearing liabilities 4.82 4.60 4.74 4.64 ------------ ------------ ------------ ------------- Interest rate spread 3.10 3.04 3.13 2.98 Impact of noninterest-bearing sources .79 .81 .78 .79 ------------ ------------ ------------ ------------- Net interest margin 3.89% 3.85% 3.91% 3.77% ===============================================================================================================================
Taxable-equivalent basis September 30 June 30 March 31 December 31 September 30 Three months ended 1997 1997 1997 1996 1996 - -------------------------------------------------------------------------------------------------------------------------------- Rates earned/paid Yield on earning assets Loans 8.23% 8.19% 8.20% 8.07% 8.01% Securities 6.17 6.21 6.27 6.32 6.39 Other interest-earning assets 6.83 6.76 6.68 6.84 6.87 ------------ ------------ ------------ ------------- ------------ Total yield on earning assets 7.92 7.85 7.86 7.71 7.64 Rate on interest-bearing liabilities Deposits 4.23 4.18 4.06 4.05 4.01 Borrowed funds 5.92 5.88 5.76 5.79 5.83 ------------ ------------ ------------ ------------- ------------ Total rate on interest-bearing liabilities 4.82 4.77 4.66 4.62 4.60 ------------ ------------ ------------ ------------- ------------ Interest rate spread 3.10 3.08 3.20 3.09 3.04 Impact of noninterest-bearing sources .79 .76 .78 .83 .81 ------------ ------------ ------------ ------------- ------------ Net interest margin 3.89% 3.84% 3.98% 3.92% 3.85% ================================================================================================================================
-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 1997 1996 1997 1996 - ------------------------------------------------------------------------------------------------------------------------------- Asset management Asset management and trust $115,197 $92,569 $332,596 $280,266 Mutual fund servicing 35,608 29,730 103,799 87,425 ---------------------------------------------------- Total asset management 150,805 122,299 436,395 367,691 Service fees Deposit 78,406 74,104 239,081 212,025 Credit card and merchant services 23,292 5,656 64,356 14,856 Corporate finance and capital markets 18,480 19,645 56,162 49,166 Consumer 19,533 16,602 54,818 44,430 Brokerage 14,138 12,432 40,111 41,418 Insurance 10,421 7,712 29,226 21,356 Other 10,876 8,295 35,910 25,062 ---------------------------------------------------- Total service fees 175,146 144,446 519,664 408,313 Mortgage banking Servicing 30,316 29,361 85,728 88,842 Marketing 15,552 4,339 22,665 15,616 Sale of servicing 683 700 2,352 1,682 ---------------------------------------------------- Total mortgage banking 46,551 34,400 110,745 106,140 Other 75,805 39,507 210,230 109,808 ---------------------------------------------------- Total noninterest income before net securities gains (losses) 448,307 340,652 1,277,034 991,952 Net securities gains (losses) (2,657) 7,722 27,139 14,569 ---------------------------------------------------- Total $445,650 $348,374 $1,304,173 $1,006,521 ===============================================================================================================================
September 30 June 30 March 31 December 31 September 30 Three months ended - in thousands 1997 1997 1997 1996 1996 - ------------------------------------------------------------------------------------------------------------------------------- Asset management Asset management and trust $115,197 $110,500 $106,899 $97,588 $92,569 Mutual fund servicing 35,608 35,518 32,673 31,460 29,730 ----------------------------------------------------------------- Total asset management 150,805 146,018 139,572 129,048 122,299 Service fees Deposit 78,406 79,817 80,858 77,571 74,104 Credit card and merchant services 23,292 21,960 19,104 14,903 5,656 Corporate finance and capital markets 18,480 21,090 16,592 16,449 19,645 Consumer 19,533 17,988 17,297 19,246 16,602 Brokerage 14,138 12,731 13,242 12,392 12,432 Insurance 10,421 9,659 9,146 8,706 7,712 Other 10,876 13,852 11,182 8,778 8,295 ----------------------------------------------------------------- Total service fees 175,146 177,097 167,421 158,045 144,446 Mortgage banking Servicing 30,316 27,963 27,449 30,064 29,361 Marketing 15,552 3,692 3,421 8,022 4,339 Sale of servicing 683 494 1,175 9,446 700 ----------------------------------------------------------------- Total mortgage banking 46,551 32,149 32,045 47,532 34,400 Other 75,805 64,773 69,652 46,399 39,507 ----------------------------------------------------------------- Total noninterest income before net securities gains (losses) 448,307 420,037 408,690 381,024 340,652 Net securities gains (losses) (2,657) 13,370 16,426 7,555 7,722 ----------------------------------------------------------------- Total $445,650 $433,407 $425,116 $388,579 $348,374 ===============================================================================================================================
-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 1997 1996 1997 1996 - ------------------------------------------------------------------------------------------------------------------------------- Staff expense Compensation $250,833 $232,161 $739,130 $694,936 Employee benefits 48,141 45,600 156,706 145,763 ---------------------------------------------------- Total staff expense 298,974 277,761 895,836 840,699 Net occupancy 46,221 47,530 139,532 147,294 Equipment 44,483 42,699 132,237 128,400 Goodwill amortization 13,110 13,244 39,652 39,182 Other amortization 35,349 15,768 78,165 41,556 Taxes other than income 13,879 12,972 42,746 40,993 Distributions on capital securities 13,192 30,015 Other 173,350 185,418 555,411 487,236 ---------------------------------------------------- Total $638,558 $595,392 $1,913,594 $1,725,360 ===============================================================================================================================
September 30 June 30 March 31 December 31 September 30 Three months ended - in thousands 1997 1997 1997 1996 1996 - ------------------------------------------------------------------------------------------------------------------------------- Staff expense Compensation $250,833 $243,602 $244,695 $234,690 $232,161 Employee benefits 48,141 50,559 58,006 34,543 45,600 ----------------------------------------------------------------- Total staff expense 298,974 294,161 302,701 269,233 277,761 Net occupancy 46,221 46,071 47,240 49,681 47,530 Equipment 44,483 45,710 42,044 43,274 42,699 Goodwill amortization 13,110 13,274 13,268 15,118 13,244 Other amortization 35,349 26,253 16,563 21,583 15,768 Taxes other than income 13,879 13,832 15,035 12,360 12,972 Distributions on capital securities 13,192 9,867 6,956 1,391 Other 173,350 189,664 192,397 173,850 185,418 ----------------------------------------------------------------- Total $638,558 $638,832 $636,204 $586,490 $595,392 ===============================================================================================================================
-more- 11 PNC BANK CORP. AND SUBSIDIARIES Page 11 Consolidated Balance Sheet
September 30 December 31 September 30 In millions 1997 1996 1996 - ---------------------------------------------------------------------------------------------------------------------------------- ASSETS Cash and due from banks $3,460 $4,016 $3,611 Short-term investments 1,084 774 920 Loans held for sale 1,398 941 915 Securities available for sale 8,000 11,917 11,243 Loans, net of unearned income of $382, $385 and $347 53,651 51,798 49,443 Allowance for credit losses (1,027) (1,166) (1,152) --------------------------------------- Net loans 52,624 50,632 48,291 Other 5,262 4,980 4,682 -------------------------- ------------ Total assets $71,828 $73,260 $69,662 ======================================= LIABILITIES Deposits Noninterest-bearing $9,914 $10,937 $10,900 Interest-bearing 34,874 34,739 34,530 --------------------------------------- Total deposits 44,788 45,676 45,430 Borrowed funds Bank notes and senior debt 10,469 8,093 7,902 Federal funds purchased 1,739 3,933 1,793 Repurchase agreements 889 645 909 Other borrowed funds 4,257 5,576 4,689 Subordinated debt 1,698 1,357 1,357 --------------------------------------- Total borrowed funds 19,052 19,604 16,650 Other 1,862 1,761 1,784 --------------------------------------- Total liabilities 65,702 67,041 63,864 Mandatorily redeemable capital securities of subsidiary trusts 650 350 SHAREHOLDERS' EQUITY Preferred stock 7 7 1 Common stock 1,740 1,726 1,717 Capital surplus 1,024 939 590 Retained earnings 4,499 4,075 3,931 Deferred benefit expense (61) (60) (77) Net unrealized securities losses (35) (67) (115) Common stock held in treasury (1,698) (751) (249) -------------------------- ------------ Total shareholders' equity 5,476 5,869 5,798 -------------------------- ------------ Total liabilities, capital securities and shareholders' equity $71,828 $73,260 $69,662 ==================================================================================================================================
-more- 12 PNC BANK CORP. AND SUBSIDIARIES Page 12 Consolidated Average Balance Sheet Data
Three months ended Nine months ended September 30 September 30 ----------------------------------------------------- In millions 1997 1996 1997 1996 - ------------------------------------------------------------------------------------------------------------------------------- ASSETS Interest-earning assets Securities $8,216 $13,097 $9,113 $14,214 Loans, net of unearned income Consumer Credit card 3,871 1,007 3,475 991 Other consumer 10,996 12,047 11,352 12,231 ---------------------------------------------------- Total consumer 14,867 13,054 14,827 13,222 Residential mortgage 13,503 12,325 13,152 11,944 Commercial 18,394 17,049 18,268 16,997 Commercial real estate 4,486 4,712 4,536 4,809 Other 1,952 1,573 1,868 1,853 ---------------------------------------------------- Total loans, net of unearned income 53,202 48,713 52,651 48,825 Other interest-earning assets 2,536 1,735 2,229 2,157 ---------------------------------------------------- Total interest-earning assets 63,954 63,545 63,993 65,196 Noninterest-earning assets 6,627 6,001 6,575 6,038 ---------------------------------------------------- Total assets $70,581 $69,546 $70,568 $71,234 ==================================================== LIABILITIES Interest-bearing liabilities Deposits $34,952 $34,794 $34,934 $35,348 Borrowed funds 18,484 17,558 18,584 18,719 ---------------------------------------------------- Total interest-bearing liabilities 53,436 52,352 53,518 54,067 Noninterest-bearing deposits 9,654 9,922 9,585 9,866 Other 1,460 1,506 1,469 1,535 ---------------------------------------------------- Total liabilities 64,550 63,780 64,572 65,468 Mandatorily redeemable capital securities of subsidiary trusts 650 498 SHAREHOLDERS' EQUITY 5,381 5,766 5,498 5,766 ---------------------------------------------------- Total liabilities, capital securities and shareholders' equity $70,581 $69,546 $70,568 $71,234 ===============================================================================================================================
-more- 13 PNC BANK CORP. AND SUBSIDIARIES Page 13 Consolidated Balance Sheet Data AVERAGE BALANCES
September 30 June 30 March 31 December 31 September 30 Three months ended - in millions 1997 1997 1997 1996 1996 - -------------------------------------------------------------------------------------------------------------------------------- ASSETS Interest-earning assets Securities $8,216 $9,055 $10,089 $11,569 $13,097 Loans, net of unearned income Consumer Credit card 3,871 3,502 3,043 1,683 1,007 Other consumer 10,996 11,239 11,827 12,084 12,047 ----------------------------------------------------------------- Total consumer 14,867 14,741 14,870 13,767 13,054 Residential mortgage 13,503 13,164 12,781 12,361 12,325 Commercial 18,394 18,494 17,916 17,584 17,049 Commercial real estate 4,486 4,530 4,591 4,630 4,712 Other 1,952 1,884 1,764 1,631 1,573 ----------------------------------------------------------------- Total loans, net of unearned income 53,202 52,813 51,922 49,973 48,713 Other interest-earning assets 2,536 2,333 1,814 1,780 1,735 ----------------------------------------------------------------- Total interest-earning assets 63,954 64,201 63,825 63,322 63,545 Noninterest-earning assets 6,627 6,620 6,476 6,214 6,001 ----------------------------------------------------------------- Total assets $70,581 $70,821 $70,301 $69,536 $69,546 ================================================================= LIABILITIES Interest-bearing liabilities Deposits $34,952 $35,313 $34,533 $34,829 $34,794 Borrowed funds 18,484 18,675 18,594 17,110 17,558 ----------------------------------------------------------------- Total interest-bearing liabilities 53,436 53,988 53,127 51,939 52,352 Noninterest-bearing deposits 9,654 9,501 9,600 10,003 9,922 Other 1,460 1,480 1,466 1,501 1,506 ----------------------------------------------------------------- Total liabilities 64,550 64,969 64,193 63,443 63,780 Mandatorily redeemable capital securities of subsidiary 650 492 350 76 trusts SHAREHOLDERS' EQUITY 5,381 5,360 5,758 6,017 5,766 ----------------------------------------------------------------- Total liabilities, capital securities and shareholders' equity $70,581 $70,821 $70,301 $69,536 $69,546 ================================================================================================================================
LOAN PORTFOLIO
September 30 June 30 March 31 December 31 September 30 Period ended - in millions 1997 1997 1997 1996 1996 - -------------------------------------------------------------------------------------------------------------------------------- Consumer Credit card $3,861 $3,693 $3,345 $2,776 $1,077 Other consumer 11,206 10,983 11,356 12,092 12,264 Residential mortgage 13,280 13,494 13,056 12,703 12,642 Commercial 19,088 18,789 18,517 18,062 17,484 Commercial real estate Commercial mortgage 2,158 2,357 2,397 2,467 2,544 Real estate project 2,159 2,123 2,137 2,157 2,090 Other 2,281 2,450 2,154 1,926 1,689 ----------------------------------------------------------------- Total loans 54,033 53,889 52,962 52,183 49,790 Unearned income (382) (392) (387) (385) (347) ----------------------------------------------------------------- Loans, net of unearned income $53,651 $53,497 $52,575 $51,798 $49,443 ================================================================================================================================
-more- 14 PNC BANK CORP. AND SUBSIDIARIES Page 14 Asset Quality Data ALLOWANCE FOR CREDIT LOSSES
September 30 June 30 March 31 December 31 September 30 Three months ended - in millions 1997 1997 1997 1996 1996 - -------------------------------------------------------------------------------------------------------------------------------- Beginning balance $1,075 $1,119 $1,166 $1,152 $1,189 Charge-offs Consumer Credit card (53) (55) (46) (23) (16) Other consumer (25) (25) (30) (28) (23) ----------------------------------------------------------------- Total consumer (78) (80) (76) (51) (39) Residential mortgage (3) (3) (2) (2) (3) Commercial (11) (10) (10) (17) (9) Commercial real estate (3) (3) (1) (9) (4) ----------------------------------------------------------------- Total charge-offs (95) (96) (89) (79) (55) Recoveries Consumer Credit card 4 9 7 2 2 Other consumer 9 9 9 9 8 ----------------------------------------------------------------- Total consumer 13 18 16 11 10 Residential mortgage 1 1 Commercial 7 18 9 7 7 Commercial real estate 2 1 3 3 1 ----------------------------------------------------------------- Total recoveries 22 37 29 22 18 ----------------------------------------------------------------- Net charge-offs (73) (59) (60) (57) (37) Provision for credit losses 20 15 10 Acquisitions 5 3 71 ----------------------------------------------------------------- Ending balance $1,027 $1,075 $1,119 $1,166 $1,152 ================================================================================================================================
NONPERFORMING ASSETS
September 30 June 30 March 31 December 31 September 30 Period ended - in millions 1997 1997 1997 1996 1996 - -------------------------------------------------------------------------------------------------------------------------------- Nonaccrual loans Commercial $142 $155 $135 $156 $176 Commercial real estate Commercial mortgage 94 106 113 109 118 Real estate project 28 33 24 25 21 Consumer 6 5 5 6 5 Residential mortgage 45 46 45 51 54 ----------------------------------------------------------------- Total nonaccrual loans 315 345 322 347 374 Restructured loans 2 1 1 2 3 ----------------------------------------------------------------- Total nonperforming loans 317 346 323 349 377 Foreclosed assets Commercial real estate 37 55 66 71 79 Residential mortgage 23 23 24 22 22 Other 17 18 16 17 23 ----------------------------------------------------------------- Total foreclosed assets 77 96 106 110 124 ----------------------------------------------------------------- Total nonperforming assets $394 $442 $429 $459 $501 ================================================================================================================================
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