UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended Commission File
June 30, 1995 Number 0-10869
FORT WAYNE NATIONAL CORPORATION
(Exact name of registrant as specified in its charter.)
INDIANA 35-1502812
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
110 West Berry Street
Post Office Box 110, Fort Wayne, Indiana 46801
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (219) 426-0555
Indicate by check mark whether the registrant(1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months,
and (2) has been subject to such filing requirements for the past
90 days.
YES [X] NO [ ]
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practical date:
Class Outstanding August 9, 1995
________________________________ ____________________________
Common Shares, Without Par Value 11,424,073
<PAGE>
<TABLE>
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
FORT WAYNE NATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Unaudited)
<CAPTION>
June 30 December 31
1995 1994
___________ ___________
(In thousands)
<S> <C> <C>
ASSETS
Cash and due from banks $ 157,858 $ 156,284
Federal funds sold and securities
purchased under agreements to resell 17,375 1,900
Interest-bearing deposits with banks 200 200
Investment securities 721,329 701,311
Loans 1,289,346 1,219,976
Less: Unearned income (3,046) (2,758)
Allowance for possible
loan losses (19,304) (21,795)
__________ __________
NET LOANS 1,266,996 1,195,423
Premises and equipment 32,929 32,756
Other assets 38,685 48,087
__________ __________
TOTAL ASSETS $2,235,372 $2,135,961
========== ==========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
LIABILITIES AND SHAREHOLDERS' EQUITY
<S> <C> <C>
Deposits:
Noninterest-bearing $ 263,665 $ 259,451
Interest-bearing 1,425,206 1,372,891
__________ __________
TOTAL DEPOSITS 1,688,871 1,632,342
Federal funds purchased and securities
sold under agreements to repurchase 254,072 255,010
Notes payable - U.S. Treasury and
other borrowings 43,808 21,884
Dividends payable 2,743 2,529
Accrued liabilities 15,971 16,547
Subordinated and other long-term notes 6,400 7,160
__________ __________
TOTAL LIABILITIES 2,011,865 1,935,472
Deferred gain on sale of premises 1,360 1,493
Shareholders' equity:
Preferred stock, without par value:
Class A Voting - 1,000,000 shares
authorized but unissued
Class B Nonvoting - 1,000,000 shares
authorized but unissued
Common stock, without par value:
Authorized shares: 20,000,000
Issued and outstanding shares -
1995 - 11,423,417; 1994 - 11,493,968 19,039 19,157
Capital surplus 31,439 31,618
Retained earnings 162,611 157,189
Unrealized gain (loss) on securities
available-for-sale 9,058 (8,968)
__________ __________
TOTAL SHAREHOLDERS' EQUITY 222,147 198,996
__________ __________
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY $2,235,372 $2,135,961
========== ==========
</TABLE>
<PAGE>
<TABLE>
FORT WAYNE NATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
<CAPTION>
Three Months Six Months
Ended June 30 Ended June 30
________________ ________________
1995 1994 1995 1994
_______ _______ _______ _______
(In thousands, except per share data)
<S> <C> <C> <C> <C>
INTEREST INCOME
Interest and fees on loans:
Taxable $28,280 $23,450 $54,769 $45,103
Tax-exempt 384 309 742 604
Interest and dividends on
investment securities:
Taxable 8,638 8,527 17,274 17,585
Tax-exempt 2,677 2,614 5,231 5,206
Interest on federal funds
sold and securities
purchased under agreements
to resell 60 61 180 109
Interest on deposits with
banks -- 6 2 13
_______ _______ _______ _______
TOTAL INTEREST INCOME 40,039 34,967 78,198 68,620
INTEREST EXPENSE
Interest on deposits 16,317 12,457 31,112 24,848
Interest on federal funds
purchased and securities
sold under agreements
to repurchase 3,449 2,193 6,513 3,738
Interest on notes payable -
U.S. Treasury and other
borrowings 291 197 588 398
Interest on subordinated and
other long-term notes 223 247 454 501
_______ _______ _______ _______
TOTAL INTEREST EXPENSE 20,280 15,094 38,667 29,485
_______ _______ _______ _______
NET INTEREST INCOME
BEFORE PROVISION FOR
POSSIBLE LOAN LOSSES 19,759 19,873 39,531 39,135
Provision for possible
loan losses 260 693 995 1,703
_______ _______ _______ _______
NET INTEREST INCOME AFTER
PROVISION FOR POSSIBLE
LOAN LOSSES 19,499 19,180 38,536 37,432
NONINTEREST INCOME
Fiduciary fees 2,447 2,264 4,819 4,447
Service charges on deposit
accounts 1,229 1,122 2,318 2,167
Other service charges 726 1,000 1,501 1,853
Net securities gains (losses) -- (1) 11 --
Other income 574 413 1,056 688
_______ _______ _______ _______
TOTAL NONINTEREST INCOME 4,976 4,798 9,705 9,155
NONINTEREST EXPENSE
Salaries and wages 6,104 5,877 12,426 11,441
Employee benefits 1,445 1,524 3,073 3,127
Net Occupancy 1,301 1,162 2,659 2,570
Equipment expense 1,006 988 2,033 1,952
FDIC assessment 914 885 1,860 1,817
Other expense 4,585 3,962 8,576 7,476
_______ _______ _______ _______
TOTAL NONINTEREST EXPENSE 15,355 14,398 30,627 28,383
_______ _______ _______ _______
INCOME BEFORE INCOME TAXES 9,120 9,580 17,614 18,204
Applicable income taxes 2,498 2,972 4,771 5,532
_______ _______ _______ _______
NET INCOME $ 6,622 $ 6,608 $12,843 $12,672
======= ======= ======= =======
Net income per share $ .58 $ .57 $ 1.12 $ 1.10
======= ======= ======= =======
</TABLE>
<PAGE>
<TABLE>
FORT WAYNE NATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
Six Months
Ended June 30
1995 1994
________ ________
(In thousands)
<CAPTION>
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 12,843 $ 12,672
Adjustments to reconcile net
income to net cash provided by
operating activities:
Provision for possible loan losses 995 1,703
Net accretion and amortization
of investment securities -- 195
Net accretion and amortization
of loans (14) (2)
Provision for depreciation and
amortization of premises and
equipment 1,733 1,687
Deferred income taxes 1,424 (416)
Amortization of deferred gain
on sale of premises (133) (133)
Gain on sale of investment
securities (14) (42)
Loss on sale of investment
securities 3 42
Loans originated for resale (2,789) (14,359)
Unrealized gain on loans held
for sale (31) --
Proceeds from sales of loans 3,078 30,701
Net (gain) loss on sale of loans (52) 375
Net loss on sale of premises
and equipment 13 9
(Increase)decrease in other assets (4,305) 310
Decrease in other liabilities (576) (1,261)
________ ________
NET CASH PROVIDED BY OPERATING
ACTIVITIES 12,175 31,481
INVESTING ACTIVITIES
Net increase in federal funds sold
and securities purchased under
agreements to resell (15,475) (725)
Net increase in interest-bearing
deposits with banks -- (99)
Proceeds from sales of investment
securities 650 6,389
Proceeds from maturities of
investment securities 85,593 166,672
Purchases of investment securities (75,941) (118,632)
Net increase in loans (72,760) (85,023)
Proceeds from disposals of premises
and equipment 30 45
Purchase of premises and equipment (1,949) (1,681)
________ ________
NET CASH USED IN INVESTING ACTIVITIES (79,852) (33,054)
FINANCING ACTIVITIES
Net increase (decrease) in deposits 56,529 (316)
Net increase in short-term borrowings 20,986 12,755
Principal payment on long-term debt (760) (760)
Cash dividends paid (5,059) (4,738)
Proceeds from exercise of stock options 381 466
Repurchase of common stock (2,826) --
________ ________
NET CASH PROVIDED BY FINANCING
ACTIVITIES 69,251 7,407
________ ________
INCREASE IN CASH AND CASH EQUIVALENTS 1,574 5,834
Cash and cash equivalents at beginning
of period 156,284 134,446
________ ________
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $157,858 $140,280
======== ========
</TABLE>
<PAGE>
FORT WAYNE NATIONAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Principals of Consolidation
The financial statements are consolidated statements of Fort
Wayne National Corporation(the Company) and its wholly-
owned subsidiaries. All significant intercompany accounts
and transactions have been eliminated. A description of all
significant accounting policies is included in the 1994 Annual
Report to Shareholders.
The accompanying unaudited consolidated financial statements have
been prepared in accordance with generally accepted accounting
principals for interim financial reporting. In the opinion of
management, all adjustments considered necessary for a fair
presentation of the operating results for the three-month and
six-month periods ended June 30, 1995 and 1994 have been made.
2. Shareholders' Equity and Per Share Data
Net income per share is based on weighted average shares
outstanding of 11,449,759 and 11,475,397 for the three months
ended June 30, 1995 and 1994, respectively and 11,473,884 and
11,471,700 for the six months ended June 30, 1995 and 1994,
respectively.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
FORT WAYNE NATIONAL CORPORATION
Management's Discussion and Analysis of Financial Condition and
Results of Operations Financial Condition
Financial Condition
Total assets of the Company increased $99 million at June 30,
1995 when compared to December 31, 1994. Average daily assets
for the second quarter of 1995 of $2.153 billion were $68
million over the average for the first quarter of 1995. For the
first six months of 1995, average daily assets were $2.119
billion compared to $2.092 billion for the same period in 1994.
Loan growth increased in the second quarter of 1995. Loans, net
of unearned income, as of June 30, 1995 were $69 million over the
amount outstanding on December 31, 1994 and $65 million over
March 31, 1995. Commercial and industrial loans increased $43
million in the second quarter and $58 million from December 31,
1994. As mortgage rates fell somewhat during the second quarter,
residential mortgages outstanding grew $4 million from March 31,
1995. Other consumer loans, including home equity borrowings and
credit cards increased $14 million in the second quarter and are
consistent with the level outstanding at December 31, 1994.
During the second quarter of 1995, the Company entered into a new
agreement with an outside credit card processor. The Company had
previously owned 50% of the outstanding card balances. The new
agreement allowed the Company to purchase and own 100% of the
balances. This increased the amount of credit card balances
outstanding over $7 million to a total of $13 million.
Average loans outstanding also continued to increase. For the
second quarter of 1995, loans averaged $1.264 billion, a $53
million increase from the first quarter of 1995. For the six
months ended June 30, 1995, loans outstanding averaged $1.238
billion compared to $1.159 billion for the same period in 1994.
With the adoption on January 1, 1994 of Financial Accounting
Standards Board Statement 115, "Accounting for Certain
Investments in Debt and Equity Securities", the Company
identified the entire investment portfolio as available-for-sale.
<PAGE>
All subsequent purchases have also been classified as available-
for-sale. The net unrealized gain, net of taxes, on securities
available-for-sale increased $18 million from December 31, 1994
to June 30, 1995.
The investment portfolio, excluding the market valuation
adjustment, decreased $10 million from December 31, 1994 as the
Company allowed maturing securities to be used to meet the
previously mentioned increase in loan demand. On average for the
first six months of 1995 excluding the market valuation
adjustment, the investment portfolio was $41 million under the
same period last year.
Federal funds sold increased $15 million as of June 30, 1995
compared to year-end 1994. However, average federal funds for
the first six months of 1995 has been relatively consistent with
the same period in 1994.
The Company's total deposits increased $57 million at June 30,
1995 when compared to December 31, 1994. Average total deposits
for the second quarter of 1995 are up $29 million from the first
quarter 1995 after having decreased $25 million in the first
quarter of 1995 from the fourth quarter of 1994. For the six
months ended June 30, 1995, average deposits totaled $1.623
billion compared to $1.618 billion for the same period in 1994.
Competition for deposits remains intense not just from other
commercial banks but also from other entities offering mutual
funds, annuities, and other investment alternatives.
Unfortunately, these other entities are not subject to the same
regulations as financial institutions.
While deposits for the year have been relatively flat, the
Company has realized a shift among the various deposit
categories. During 1992 and 1993, when interest rates were
historically low, short-term deposits gained favor as the
depositor did not perceive a sufficient premium to extend
maturities. Now, as rates have increased, depositors are
beginning to again extend their maturities. For the six months
ended June 30, 1995, average short-term deposits including
interest-bearing checking and other money market deposits
decreased $18 million while other time deposits, excluding
deposits of $100,000 or more, increased $25 million over the same
period in 1994.
<PAGE>
Short-term borrowings, including federal funds purchased and
securities sold under agreements to repurchase, and notes
payable, increased $21 million at June 30, 1995 from December 31,
1994. On average, short-term borrowings for the first six months
of 1995 were $23 million over the same period in 1994 as
commercial depositors increased their use of the Company's cash
management services.
Capital Resources
The Federal Reserve Board standards classify capital into two
categories, called Tier I and Tier II. The Company is required
to maintain a certain amount of capital in each category based on
"risk-adjusted" assets. The capital guidelines require a
combined Tier I and Tier II ratio of 8.0% with at least a 4.0%
Tier I capital ratio. In addition, the Federal Reserve Board
requires a minimum Tier I leverage ratio of 4.0%. Tier I
leverage ratio is defined as Tier I capital divided by total
assets less goodwill. The Company's risk-based capital ratios
continue to exceed minimum regulatory requirements as shown in
the following table (in thousands of dollars). This performance
is attributed to the low level of risk-weighted assets in both
the loan and investment portfolios.
<PAGE>
<TABLE>
RISK-BASED CAPITAL
<CAPTION>
JUNE 30, 1995 DEC 31, 1994 JUNE 30, 1994
_____________ ____________ _____________
(DOLLARS IN THOUSANDS)
<S> <C> <C> <C>
Tier I Capital $ 210,912 $ 205,671 $ 196,914
Tier II Capital 17,982 16,036 16,365
____________ ____________ ____________
Total Tier I and
Tier II Capital $ 228,894 $ 221,707 $ 213,279
============ ============ ============
Risk-weighted Assets $ 1,438,712 $ 1,283,057 $ 1,309,400
============ ============ ============
Tier I Capital Ratio 14.66% 16.03% 15.04%
Tier II Capital Ratio 1.25% 1.25% 1.25%
____________ ____________ ____________
Total Tier I and
Tier II Capital
Ratio 15.91% 17.28% 16.29%
============ ============ ============
Tier I Leverage Ratio 9.44% 9.64% 9.32%
============ ============ ============
</TABLE>
Management has reviewed current recommendations by the regulatory
authorities, including pending requirements under the Federal
Deposit Insurance Corporation Improvement Act (FDICIA). It is
the opinion of management that the adoption of these regulations
would not have a material effect on the liquidity, capital
resources, or operations of the Company.
<PAGE>
Results of Operations
Net income for the second quarter of 1995 amounted to $6.622
million or $.58 per share, relatively flat with the $6.608
million or $.57 per share for the second quarter of 1994. For
the first six months of 1995, net income was $12.843 million or
$1.12 per share compared to $12.672 million of $1.10 per share
for the same period in 1994.
The net interest margin, measured on a fully taxable equivalent
basis, was 4.32% for the second quarter of 1995, a decrease of 13
basis points from the 4.45% in the first quarter of 1995. For
the year, the net interest margin averaged 4.38% compared to
4.42% for 1994. Competition for loans continued to be extremely
keen the Company's market place. In addition, in an effort to
increase deposits, the Company increased certain deposit rates
and held other deposit rates constant even though the general
level of interest rates declined during the quarter.
The Company uses interest rate futures contracts as a part of its
overall interest rate management. These contracts represent
commitments to sell a specified instrument at a future date and
at a specified price. The notional amount of these futures
contracts used for hedging deposit liability accounts amounted to
$486 million at June 30, 1995 compared to $458 million at
December 31, 1994. The open position of the interest rate
futures contracts at June 30, 1995 was a $727,000 loss
indicating a decline in rates since the hedges were placed.
The allowance for possible loan losses represents management's
estimate of potential credit losses associated with the loan
portfolio, including all off-balance sheet lending commitments.
While the balance is only an estimate, management does perform a
systematic analysis in determining the adequacy of the allowance
for possible loan losses and, consequently, the annual provision
charged to earnings. Factors considered by management to
determine the adequacy of the allowance for possible loan losses
include: changes in policies and procedures, including
underwriting standards and collection, charge-off and recovery
practices; changes in national and local economic and business
conditions and developments, including the condition of various
market segments; changes in the experience, ability, and depth of
the lending management; the identification of any concentrations
<PAGE>
of credit, and changes in the level of such concentrations; and
the effect of external factors such as competition and legal and
regulatory requirements. Accordingly, the possibility exists
that changes may be required in future periods due to the dynamic
economic environment and its possible impact on the financial
stability of the Company's borrowers.
The allowance for possible loan losses amounted to $19.3 million
at June 30, 1995, a decrease of $2.5 million from the $21.8
million at December 31, 1994 and $3.3 million less than the $22.6
million at June 30, 1994. This resulted in a ratio of the
allowance to total loans outstanding at June 30, 1995 of 1.50%, a
decrease from the 1.79% as of December 31, 1994.
The Company's nonperforming loans, including nonaccrual, past due
90 days, and restructured loans are summarized as follows (in
thousands of dollars).
<PAGE>
<TABLE>
NONPERFORMING ASSET TABLE
<CAPTION>
JUNE 30, 1995 DEC 31, 1994 JUNE 30, 1994
_____________ ____________ _____________
(DOLLARS IN THOUSANDS)
<S> <C> <C> <C>
Nonaccrual Loans $ 6,557 $ 11,282 $ 12,644
90 Days Past Due 1,186 944 1,045
Restructured -- 8,750 928
____________ ____________ ____________
Total Nonperforming
Loans $ 7,743 $ 20,976 $ 14,617
============ ============ ============
Nonperforming Loans
as a Percent of
Total Loans
Outstanding .60% 1.72% 1.21%
============ ============ ============
Other Real Estate 360 631 549
____________ ____________ ____________
Total Nonperforming
Assets $ 8,103 $ 21,607 $ 15,166
============ ============ ============
Nonperforming Assets
as a Percent of
Total Assets .36% 1.01% 1.26%
============ ============ ============
</TABLE>
As of December 31, 1994, the Company had reported an additional
$5.9 million of loans where management was closely monitoring the
borrower's ability to comply with payment terms. While none of
these loans were classified as past due or nonaccrual as of June
30, 1995, subsequent to June 30, 1995 $3.2 million of the $5.9
million were classified as nonaccrual. Management is still
closely monitoring the remaining $2.7 million.
<PAGE>
Total nonperforming loans decreased $13.2 million at June 30,
1995 when compared to December 31, 1994 and $6.9 million from
June 30, 1994. The primary reason for this change was the
decrease in restructured loans. An $8 million loan classified as
restructured as of December 31, 1994 has subsequently
demonstrated sufficient performance under the new terms to now be
classified as performing.
Another reason for the decrease in nonperforming is that the
Company charged off $3 million of a nonaccrual loan during the
second quarter of 1995. The remaining portion of this loan is
still classified as nonaccrual and constitutes the majority of
the total nonaccrual balance. Excluding this transaction, net
charge-offs for the second quarter amounted to $246,000, very
comparable to the $240,000 during the first quarter of 1995.
As a result of management's quarterly loan review of the adequacy
of the allowance for possible loan losses, the Company provided
$260,000 for possible loan losses. This level is less than the
$735,000 provided in the first quarter of 1995 and less than the
$693,000 provided in the same quarter in 1994. In connection
with the charge-off of $3 million on the above mentioned
nonaccrual loan, the Company agreed to fund certain operating
expenses related to the loan collateral on behalf of the
borrower. The payment of these expenses were required to be
recognized as part of the Company's operating expenses. However,
such anticipated expenses had previously been provided for
through the allowance for possible loan losses. Accordingly, the
Company reduced the provision and related allowance for possible
loan losses in the second quarter by the amount of the expenses
($450,000) that were recognized as part of other operating
expense.
The Company's noninterest income for the second quarter of 1995
increased $178,000 from the second quarter of 1994. For the
period ended June 30, 1995, noninterest income of $9.7 million
was $550,000 or 6% above the prior year's results. Both
fiduciary fees and service charges on deposit accounts increased.
Other service charges decreased as income from the Company's
life insurance company decreased. In addition, the Company has
eliminated intra company charges for data processing services.
Other income, however, increased $368,000 from 1994. In 1994,
the Company realized $375,000 of losses on sold loans while
during the same period in 1995, the Company realized gains of
$80,000.
<PAGE>
Noninterest expense also increased $957,000 or approximately 7%
during the second quarter of 1995 compared to the second quarter
of 1994. For the six months ended June 30, 1995, noninterest
expense increased $2.2 million or approximately 8%.
Salaries and wages increased $985,000 or 9% for the first six
months of 1995 compared to the same period in 1994. Staffing
levels associated primarily with the continued conversion of
application software and the new platform automation project have
increased during the year. In addition, deferred compensation
relating to loan originations decreased $137,000 in 1995 from
1994. However, employee benefit expense for the same period
decreased relating to an accrual adjustment of $114,000 for
pension expense.
While net occupancy expense for the second quarter of 1995 was
12% higher than the second quarter of 1994, for the six months
ended June 30, 1995, net occupancy expense increased
approximately 3% from the same period in 1994. No new facilities
were opened during this period. However, the Company will be
assuming additional space in its main office headquarters during
the second half of 1995 to expand the loan and trust division.
For the six months ended June 30, 1995, equipment expense also
increased 4%. The Company continues to expand its computer
hardware and upgrade its software. Therefore, it is anticipated
that equipment expense will continue to increase in the later
half of 1995.
While FDIC insurance expense for the six months ended June 30,
1995 was relatively consistent with the six months ended June 30,
1994, it is believed the Federal Deposit Insurance Corporation
insurance fund met its mandated level of 1.25% of insured
deposits sometime in the second quarter of 1995. Therefore, the
Company expects its FDIC insurance expense will be reduced from
the current rate of $.23 per $100 of insured deposits to $.04 per
$100 of insured deposits for well-capitalized banks. This
reduction in the FDIC insurance premium would reduce the
Company's annual costs by approximately $3 million, based upon
the deposits as of June 30, 1995.
<PAGE>
Other noninterest expense grew $623,000 or approximately 16%
during the second quarter of 1995 compared to the second quarter
of 1994. Three-quarters of the increase related to the
previously mentioned funding of certain operating expenses on
behalf of a single borrower. For the six months ended June 30,
1995, other expense increased $1.1 million or 15%. Over 60% of
the increase is the result of a teller loss recognized in the
first quarter along with the loan expense in the second quarter.
Excluding these transactions, other expense would have increased
at an anticipated level of approximately 5%.
Applicable income taxes for the six months ended June 30, 1995
decreased $761,000 as a result of a decrease in taxable income
along with a change in estimate in connection with the
calculation of the Company's overall income tax accruals.
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
This item is inapplicable or is omitted pursuant to
the instructions to Part II.
Item 2. Changes in Securities.
This item is inapplicable or is omitted pursuant to
the instructions to Part II.
Item 3. Defaults on Senior Securities.
This item is inapplicable or is omitted pursuant to
the instructions to Part II.
Item 4. Submission of Matters to a Vote of Security Holders.
This item is inapplicable or is omitted pursuant to
the instructions to Part II.
Item 5. Other Information.
This item is inapplicable or is omitted pursuant to
the instructions to Part II.
Item 6. Exhibits and Reports on Form 8-K
a.) Exhibits
Exhibit 11 - Statement Re Computation of Earnings
Per Share.
b.) Reports on Form 8-K
No Form 8-K was filed during the second quarter
of 1995.
<PAGE>
FORT WAYNE NATIONAL CORPORATION
SIGNATURES
Pursuant to the requirement 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.
FORT WAYNE NATIONAL CORPORATION
REGISTRANT
August 11, 1995 Jackson R. Lehman
Date Jackson R. Lehman
Chairman of the Board and
Chief Executive Officer
August 11, 1995 Stephen R. Gillig
Date Stephen R. Gillig
Executive Vice President,
Secretary, and Treasurer
<TABLE>
EXHIBIT 11
FORT WAYNE NATIONAL CORPORATION AND SUBSIDIARIES
STATEMENT RE COMPUTATION OF EARNINGS PER SHARE
(Unaudited)
<CAPTION>
Three Months Six Months
Ended June 30 Ended June 30
________________ ________________
1995 1994 1995 1994
_______ _______ _______ _______
(In thousands, except per share data)
<S> <C> <C> <C> <C>
PRIMARY
Average shares outstanding 11,450 11,475 11,474 11,472
Net effect of dilutive
stock options -- based on
the treasury stock method
using average market price 30 36 18 33
_______ _______ _______ _______
TOTAL 11,480 11,511 11,492 11,505
======= ======= ======= =======
Net income $ 6,622 $ 6,608 $12,843 $12,672
======= ======= ======= =======
Earnings per share $ .58 $ .57 $ 1.12 $ 1.10
======= ======= ======= =======
FULLY DILUTED
Average shares outstanding 11,450 11,475 11,474 11,472
Net effect of dilutive
stock options -- based on
the treasury stock method
using the higher of the
end of the period market
price or average market
price 35 36 35 33
_______ _______ _______ _______
TOTAL 11,485 11,511 11,509 11,505
======= ======= ======= =======
Net income $ 6,622 $ 6,608 $12,843 $12,672
======= ======= ======= =======
Earnings per share $ .58 $ .57 $ 1.12 $ 1.10
======= ======= ======= =======
<FN>
Note - Average shares outstanding were used for earnings per
share amounts included in the Company's financial
statements since the dilutive effect of stock options
granted were less than 3%.
</TABLE>
