SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10Q
Quarterly Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the quarter ended September 30, 1997 Commission file number 09426
NATIONAL CITY BANCORPORATION
(Exact name of registrant as specified in its charter)
Iowa 42-0316731
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) identification No.)
651 Nicollet Mall
Minneapolis, Minnesota 55402-1611
(Address of Principal (Zip Code)
Executive Offices)
Registrant's telephone number, including area code 612-904-8500
Indicate by check mark whether the registrant (1) has filed all reports
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes _X_ No ___
As of September 30, 1997, 8,110,836 shares of $1.25 par value common
stock of the registrant were outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
(1)National City Bancorporation's Quarterly Report to Stockholders for
the quarter ended September 30, 1997, is incorporated and made a part of Part I
of Form 10-Q.
<PAGE>
NATIONAL CITY BANCORPORATION
INDEX
Part I Financial Statements
The following data is incorporated by reference from National City
Bancorporation's Quarterly Report to Stockholders filed as Exhibit 19 hereto.
Consolidated Balance Sheets - September 30, 1997 and December 31, 1996.
Consolidated Statements of Earnings - Three months and nine months
ended September 30, 1997 and 1996.
Consolidated Statements of Cash Flows - Nine months ended September 30, 1997 and
1996 are included on page 2 of this report.
Notes to Consolidated Financial Statements are included on page 3 of this
report.
Management's Discussion and Analysis of Financial Condition and Results of
Operations is included on pages 4, 5, 6, and 7 of this report.
Part II. Other Information
Part II items requiring a response are included on page 8 of this report.
<PAGE>
NATIONAL CITY BANCORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
SEPTEMBER 30,
(IN THOUSANDS) 1997 1996
- ----------------------------------------------------------------------------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 11,075 $ 9,210
Adjustments to reconcile net earnings to net cash from operating
activities:
Depreciation and amortization 2,351 1,525
Amortization of securities premiums and discounts 328 388
Provision for loan losses 1,859 1,395
(Increase) decrease in accrued income receivable (546) 342
(Increase) decrease in other assets 213 (46)
(Decrease) in other liabilities (931) (3,943)
-------------------------
Total operating adjustments 3,274 (339)
-------------------------
NET CASH FROM OPERATING ACTIVITIES 14,349 8,871
-------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Net (increase) in loans (76,642) (43,475)
Net decrease in federal funds sold 38,370 10,350
Available-for-sale securities:
Proceeds from maturities and principal repayments 22,191 46,356
Purchases of securities (15,147) (52,715)
Held-to-maturity securities:
Proceeds from maturities and principal repayments 6,521 11,586
Purchases of securities (15,139) (9,000)
Purchase of premises and equipment (2,041) (8,353)
-------------------------
NET CASH (USED IN) INVESTING ACTIVITIES (41,887) (45,251)
-------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (decrease) in non-interest bearing and savings deposits (30,041) (21,659)
Net (decrease) in time deposits (22,413) (6,812)
Net increase in federal funds purchased and repurchase agreements 33,837 27,348
Net increase in commercial paper 39,607 29,193
Net increase in other borrowed funds 13,812 13,704
Net increase (decrease) in long-term debt 9,080 (200)
Purchase of treasury stock (852) (2)
Payment for fractional shares on stock dividends (22) (25)
-------------------------
NET CASH FROM FINANCING ACTIVITIES 43,008 41,547
-------------------------
Net increase in cash and due from banks 15,470 5,167
Cash and due from banks at beginning of year 47,934 42,006
-------------------------
Cash and due from banks at end of period $ 63,404 $ 47,173
=========================
SUPPLEMENTAL DISCLOSURES
Cash paid during the year for:
Interest $ 26,686 $ 23,582
Income taxes 7,101 5,771
Unrealized securities gains (losses) net of tax 578 (1,210)
</TABLE>
<PAGE>
NATIONAL CITY BANCORPORATION
Notes to the Consolidated Financial Statements
The Consolidated Balance Sheet as of September 30, 1997, the
Consolidated Statements of Earnings for the three-month and nine-month periods
ended September 30, 1997 and 1996 and the Consolidated Statements of Cash Flows
for the nine-month periods then ended have been prepared by the Company without
audit. In the opinion of management, all adjustments necessary to present fairly
the financial position, results of operations and cash flows at and for the
periods ended September 30, 1997 and 1996, respectively, have been made.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been omitted. These consolidated financial statements should be
read in conjunction with the financial statements and notes thereto included in
the Company's December 31, 1996 annual report to stockholders. The results of
operations for the period ended September 30, 1997 are not necessarily
indicative of the operating results for the full year.
<PAGE>
NATIONAL CITY BANCORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
EARNINGS:
Net earnings for the third quarter ended September 30, 1997 increased
to $4,311,000, up 26 percent over 1996 earnings of $3,429,000. Earnings per
share increased to $ .54 for the third quarter of 1997,compared with earnings
per share of $ .43 in the third quarter of 1996. The increase was mainly
attributable to the receipt of a State of Minnesota tax refund for the years
1978 through 1981 totaling $1,369,000 including interest. The net after tax
effect was approximately $850,000. Net earnings for the first nine months of
1997 were $11,075,000, up 20 percent over 1996 earnings of $9,210,000, and
earnings per share increased to $1.37 compared with $1.14 for the same period.
Earnings information is summarized below:
- ----------------------------------------------------------------------------
Third Quarter Nine Months
1997 1996 1997 1996
-------- -------- -------- --------
Net income $ 4,311 $ 3,429 $ 11,075 $ 9,210
Earnings per share $ .54 $ .43 $ 1.37 $ 1.14
Return on average equity 13.59% 12.10% 12.16% 11.21%
Return on average assets 1.83% 1.68% 1.64% 1.55%
- ----------------------------------------------------------------------------
Net interest income for the third quarter was $11,243,000, up
$1,390,000 or 14 percent over the third quarter of 1996. Net interest income for
the first nine months of 1997 was $32,354,000, an increase of $3,298,000 or 11
percent over the same period of 1996. Fluctuations in net interest income can
result from changes in the volume of assets and liabilities as well as changes
in interest rates. The following table summarizes variances in net interest
income attributed to changes in balance sheet volumes and interest rates:
- -------------------------------------------------------------------------------
NET INTEREST INCOME CHANGE FROM THIRD QUARTER 1996
Resulting from:
Interest On: Total Rates Volumes
----- ----- -------
Total Earning Assets $ 3,171 $ 562 $ 2,609
Total Interest Bearing Liabilities 1,781 464 1,317
-------------------------------------
Change in Net Interest Income $ 1,390 $ 98 $ 1,292
=====================================
NET INTEREST INCOME CHANGE FROM FIRST NINE MONTHS 1996
Resulting from:
Interest On: Total Rates Volumes
----- ----- -------
Total Earning Assets $ 7,463 $ 252 $ 7,211
Total Interest Bearing Liabilities 4,165 504 3,661
-------------------------------------
Change in Net Interest Income $ 3,298 $ (252) $ 3,550
=====================================
-------------------------------------------------------------------------------
<PAGE>
The tax equivalent net interest margin for the quarter was 5.14 percent
compared with 5.25 percent for the same period last year. The net interest
margin is the product of many factors, including the yields on interest bearing
assets, the rates paid on interest bearing liabilities, and the mix of interest
bearing assets and liabilities. We continue to face strong competition for loans
in our market niche. Notwithstanding the competitive environment, loans
increased by 13 percent over the third quarter of 1996.
Noninterest income for the third quarter was $3,489,000 when compared
with $2,381,000 in 1996, an increase of 47 percent. Noninterest income for the
first nine months was $8,949,000, which was $1,783,000 or 25 percent higher than
1996. The largest single contributor to this increase in noninterest income was
a state income tax refund of $1,369,000 received in the third quarter. In
addition to the tax refund, service charges on deposit accounts, trust fees, and
a one-time contract cancellation fee, contributed to the nine-month increase.
Noninterest expense increased $1,116,000, or 18 percent for the third
quarter and $1,552,000, or 8 percent for the first nine months. The Company has
continued to invest in premises, equipment, and technology. Diversified Business
Credit, Inc. (DBCI), the Company's commercial finance subsidiary relocated its
offices during the third quarter. Other increases to noninterest expense related
to increased use of outside professional services and adjustments to
performance-based compensation.
The operating ratio improved to 48.53 percent for the third quarter of
1997, compared to 49.31 percent for the same period last year. The improvement
was due to the increases in net interest income and noninterest income,
partially offset by the increase in noninterest expense.
LOAN LOSS RESERVE:
There were net loan recoveries during the third quarter of $61,000,
compared with net loan charge-offs of $1,429,000 for the same period last year.
The loan loss provision was $502,000 for the third quarter, compared with
$495,000 in the third quarter of 1996. The provision is based on management's
continuing evaluation of the loan portfolio, including estimates and appraisals
of collateral values, and current economic conditions. At September 30, 1997,
the allowance for loan losses was $9,805,000, or 1.46 percent of loans, compared
to 1.43 percent at December 31, 1996. Credit quality remains strong with
non-performing assets at .4 percent of loans outstanding. At quarter end the
reserve coverage of non-performing assets was 328 percent. Activity regarding
the allowance is summarized below:
<PAGE>
- --------------------------------------------------------------------------------
(in thousands)
Third Quarter Nine Months
1997 1996 1997 1996
---- ---- ---- ----
Balance beginning of period $9,242 $9,460 $8,511 $8,602
Provision charge to operating expense 502 495 1,859 1,395
Less net loan charge-offs 61 (1,429) (565) (1,471)
----------------------------------------
Balance September 30 $9,805 $8,526 $9,805 $8,526
========================================
- --------------------------------------------------------------------------------
LIQUIDITY AND CAPITAL RESOURCES:
The Company's average total assets were $ 933.3 million for the
three-months ended September 30, 1997, up from $ 813.3 million for the same
period in 1996. The majority of the increase is attributable to loans to
businesses. The Company continues to fund asset growth from various liability
sources, including interest bearing deposits, short-term borrowings, retention
of earnings, and noninterest bearing deposits. Short-term borrowings include
commercial paper which is used to fund the loans of DBCI. In addition to
deposits and short-term borrowings, the Company had long-term debt of $ 57
million at September 30, 1997, in the form of senior notes, which were also used
to fund the loans of DBCI.
The Company continues to maintain a capital position that exceeds
regulatory risk-based and leverage ratio capital requirements. The required
risk-based ratio is 8 percent and the required leverage ratio is 3 to 5 percent.
The following table shows the Company's capital ratios:
- --------------------------------------------------------------------------
September 30,
1997 1996
---- ----
RISK-BASED CAPITAL RATIOS
Tier I Capital 16.01% 15.77%
Tier II Capital 17.23% 16.94%
LEVERAGE RATIO 13.45% 13.53%
- --------------------------------------------------------------------------
PRIVATE SECURITIES LITIGATION REFORM ACT:
The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward-looking statements. Certain information included in this
Form 10-Q and other material filed or to be filed by the Company with the
Securities and Exchange Commission (as well as information included in oral
statements or other written statements made or to be made by the Company)
contains statements that are forward-looking, such as statements relating to
plans for future expansion and other business development activities as well as
other capital spending, financing sources and the effects of regulation and
competition. Such forward-looking information involves important risks and
uncertainties that could significantly affect anticipated results in the future
and, accordingly, such results may differ from those expressed in any
forward-looking statements
<PAGE>
made by or on behalf of the Company. These risks and uncertainties include, but
are not limited to, those relating to development and construction activities,
dependence on existing management, leverage and debt service (including
sensitivity to fluctuations in interest rates), domestic or global economic
conditions, changes in federal or state tax laws or the administration of such
laws, litigation or claims, as well as all other risks and uncertainties
described in the Company's filings.
<PAGE>
NATIONAL CITY BANCORPORATION
Part II Other Information
Item 4. None
Item 6. Exhibits and reports of Form 8-K.
Exhibit index:
Number Description
------ -----------
19 Quarterly Report to Stockholders
27 Financial Data Schedule
There were no reports on Form 8-K filed for the three months ended
September 30, 1997.
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.
NATIONAL CITY BANCORPORATION
Dated: November 7, 1997 By: /S/David L. Andreas
------------------- -------------------------------------
Chairman & Chief Executive Officer
Dated: November 7, 1997 By: /S/Thomas J. Freed
------------------- -------------------------------------
Secretary and Chief Financial Officer
NATIONAL CITY
BANCORPORATION
1997
THIRD QUARTER
REPORT
NINE MONTHS
ENDED
SEPTEMBER 30, 1997
<PAGE>
TO OUR STOCKHOLDERS:
Net earnings were $4,311,000 for the third quarter of 1997, up 26 percent,
compared with $3,429,000 in the third quarter of 1996. Earnings per share
increased to $0.54 compared with $0.43 in the third quarter of 1996. For the
nine-month period ending September 30, 1997, net earnings increased to
$11,075,000 or $1.37 per share from $9,210,000 and $1.14 per share for the same
period last year.
Third quarter net interest income was $11,243,000, which was higher by
$1,390,000, or 14 percent, than in the third quarter of 1996. The improvement
was primarily attributable to an increase in average loans, which were up $81.9
million, or 14 percent from the third quarter of 1996. The growth in loans
occurred mainly in commercial lending at both subsidiaries, National City Bank
of Minneapolis and Diversified Business Credit, Inc. The net interest margin
was 5.14 percent for the third quarter compared with 5.25 percent for the same
period last year. Non-interest income for the third quarter was $1,108,000 or 46
percent more than the third quarter of 1996. Noninterest income included a
$1,369,000 income tax refund from the State of Minnesota with an after tax
effect of $850,000. Noninterest expense for the third quarter was $1,116,000 or
18 percent more than the third quarter of 1996 due to expenses related to
continued investment in premises, equipment, and technology and increased
performancebased compensation expenses.
There were net loan recoveries for the third quarter of $61,000. Additional loss
provisions of $502,000 were added to the reserve during the quarter. As a
result, the Company's reserve for loan losses at quarter-end was $9,805,000 or
1.46 percent of loans outstanding compared to $8,511,000 and 1.43 percent at
December 31, 1996. Nonperforming assets, those loans which were 90 days past due
or on which interest is no longer expected to be earned, were $3.0 million or
.44 percent of total loans at September 30, 1997 compared with $3.2 million or
.54 percent of total loans at December 31, 1996. The reserve coverage of these
nonperforming assets was 328 percent.
Current news and other information about your Company can now be found on the
internet at
http://www.shareholdernews.com/NCBM
The site includes our current stock price, press releases, and a link to
Securities and Exchange Commission filings.
/s/ David L. Andreas
David L. Andreas
Chairman of the Board and
Chief Executive Officer
<PAGE>
NATIONAL CITY BANCORPORATION AND SUBSIDIARIES
<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEETS
(in thousands) September 30, December 31,
1997 1996
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Cash and due from banks ..................................... $ 63,404 $ 47,934
Federal funds sold and resale agreements .................... 21,750 60,120
Available-for-sale securities:
U.S. Treasury ........................................... 23,983 23,903
U.S. Government agencies ................................ 9,855 9,661
Mortgage-backed ......................................... 88,001 94,671
Other securities ........................................ 4,955 4,955
----------- -----------
Total available-for-sale securities ................ 126,794 133,190
Held-to-maturity securities:
Mortgage-backed ......................................... 40,117 31,254
Other securities ........................................ 251
----------- -----------
Total held-to-maturity securities .................. 40,117 31,505
(approximate market value: 1997$40,644; 1996$31,812)
Loans ....................................................... 673,146 596,504
Less allowance for loan losses .......................... (9,805) (8,511)
----------- -----------
Net loans ........................................... 663,341 587,993
Bank premises & equipment ................................... 11,806 11,798
Accrued interest receivable ................................. 6,852 6,306
Customer acceptance liability ............................... 327 787
Other assets ................................................ 20,283 20,496
----------- -----------
Total assets ....................................... $ 954,674 $ 900,129
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest bearing ..................................... $ 122,064 $ 162,895
Interest bearing ........................................ 345,113 356,736
----------- -----------
Total deposits ..................................... 467,177 519,631
Federal funds purchased and repurchase agreements ........... 130,477 96,640
Commercial paper ............................................ 137,714 98,107
Other short-term borrowed funds ............................. 25,178 11,366
Acceptances outstanding ..................................... 327 787
Other liabilities ........................................... 8,010 7,665
Long-term debt .............................................. 57,000 47,920
----------- -----------
Total liabilities .................................. 825,883 782,116
Stockholders' equity:
Common stock, par value $1.25
Authorized shares: 20,000,000
Issued shares: 1997 -- 8,110,836; 1996 -- 7,374,520 10,139 9,218
Additional paid-in capital .............................. 94,756 79,199
Unrealized gains (losses) net of tax effect ............. 172 (405)
Retained earnings ....................................... 24,575 30,001
----------- -----------
Subtotal ........................................... 129,642 118,013
Less common stock in treasury at cost:
1997 -- 33,387 shares; 1996 -- 16 shares ................ (851)
----------- -----------
Total stockholders' equity ......................... 128,791 118,013
----------- -----------
Total liabilities and stockholders' equity ......... $ 954,674 $ 900,129
=========== ===========
</TABLE>
<PAGE>
NATIONAL CITY BANCORPORATION AND SUBSIDIARIES
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands except per share) Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INTEREST INCOME
Interest and fees on loans ................................ $ 17,199 $ 14,660 $ 48,892 $ 42,816
Interest on federal funds sold & resale agreements ........ 491 90 1,087 414
Interest and dividends on securities: ..................... 2,873 2,642 8,499 7,785
----------- ----------- ----------- -----------
Total interest income ............................ 20,563 17,392 58,478 51,015
INTEREST EXPENSE
Interest on deposits ...................................... 4,401 3,668 12,147 10,754
Interest on short-term borrowed funds ..................... 3,922 3,061 11,156 8,770
Interest on long-term debt ................................ 997 810 2,821 2,435
----------- ----------- ----------- -----------
Total interest expense ........................... 9,320 7,539 26,124 21,959
----------- ----------- ----------- -----------
Net interest income .............................. 11,243 9,853 32,354 29,056
Provision for loan losses ................................. 502 495 1,859 1,395
----------- ----------- ----------- -----------
Net interest income after provision for loan losses ....... 10,741 9,358 30,495 27,661
NONINTEREST INCOME
Service charges on deposit accounts ....................... 496 520 1,678 1,529
Fees for other customer services .......................... 420 425 1,258 1,405
Trust fees ................................................ 1,031 1,095 3,544 3,346
State income tax refund ................................... 1,369 1,369
Other ..................................................... 173 341 1,100 886
----------- ----------- ----------- -----------
Total noninterest income ......................... 3,489 2,381 8,949 7,166
NONINTEREST EXPENSES
Salaries and employee benefits ............................ 4,013 3,527 11,651 11,159
Net occupancy expense ..................................... 788 704 2,332 2,164
Equipment rentals, depreciation & maintenance ............. 890 687 2,662 2,054
Other ..................................................... 1,458 1,115 4,530 4,246
----------- ----------- ----------- -----------
Total noninterest expense ........................ 7,149 6,033 21,175 19,623
----------- ----------- ----------- -----------
Earnings before taxes ..................................... 7,081 5,706 18,269 15,204
Applicable income taxes ................................... 2,770 2,277 7,194 5,994
----------- ----------- ----------- -----------
Net earnings ..................................... $ 4,311 $ 3,429 $ 11,075 $ 9,210
=========== =========== =========== ===========
Net earnings per common share .................................. $ 0.54 $ 0.43 $ 1.37 $ 1.14
Average common and common equivalent shares outstanding ........ 8,088,698 8,111,246 8,103,387 8,111,265
</TABLE>
<PAGE>
NATIONAL CITY BANCORPORATION
CHANGE OF ADDRESS FOR SHAREHOLDER
National City Bank of Minneapolis
Stock Transfer Department
P.O. Box 1919
Minneapolis, Minnesota 55480-1919
PLEASE CHANGE MY ADDRESS TO:
Name
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(PRINT NAME EXACTLY AS IT APPEARS ON STOCK CERTIFICATE)
Street
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City
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State Zip Code
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Date
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Old Address
Street
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City
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State Zip Code
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Signature
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<PAGE>
DIRECTORS OF NATIONAL CITY OFFICERS OF NATIONAL CITY
BANCORPORATION BANCORPORATION
David L. Andreas David L. Andreas
CHAIRMAN OF THE BOARD AND CHAIRMAN OF THE BOARD AND
CHIEF EXECUTIVE OFFICER CHIEF EXECUTIVE OFFICER
National City Bancorporation
Thomas J. Freed
Wendell R. Anderson* SECRETARY AND
OF COUNSEL CHIEF FINANCIAL OFFICER
Larkin, Hoffman, Daly and
Lindgren Ltd. PRINCIPAL OFFICERS OF
SUBSIDIARIES
L.W. Andreas
RETIRED CHAIRMAN OF DIVERSIFIED BUSINESS
THE BOARD AND CREDIT INC.
CHIEF EXECUTIVE OFFICER
National City Bancorporation David L. Andreas
CHAIRMAN OF THE BOARD
Terry L. Andreas
CHAIRMAN OF THE BOARD Robert L. Olson
School for Field Studies PRESIDENT AND
Beverly, Massachusetts CHIEF EXECUTIVE OFFICER
Marvin Borman* Janet L. Pomeroy
PARTNER SENIOR VICE PRESIDENT
Maslon, Edelman, Borman
and Brand NATIONAL CITY BANK
OF MINNEAPOLIS
Kenneth H. Dahlberg
CHAIRMAN OF THE BOARD David C. Malmberg
Dahlberg, Inc. NON-EXECUTIVE CHAIRMAN
OF THE BOARD
John H. Daniels, Jr.*
PARTNER David L. Andreas
Willeke and Daniels PRESIDENT AND
CHIEF EXECUTIVE OFFICER
Thomas E. Holloran*
PROFESSOR, GRADUATE PROGRAMS William J. Klein
IN MANAGEMENT EXECUTIVE VICE PRESIDENT
University of St. Thomas CLIENT SERVICES
C. Bernard Jacobs Thomas J. Freed
RETIRED PRESIDENT AND SENIOR VICE PRESIDENT AND
CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER
National City Bancorporation
RETIRED CHAIRMAN OF THE Donald W. Kjonaas
BOARD SENIOR VICE PRESIDENT
National City Bank OPERATIONS
David C. Malmberg
NON-EXECUTIVE CHAIRMAN
OF THE BOARD
National City Bank
Walter E. Meadley, Jr.
RETIRED VICE CHAIRMAN
OF THE BOARD
National City Bank
Roger H. Scherer*
CHAIRMAN OF THE BOARD
Scherer Bros. Lumber Company
*Members of the Audit Committee
<PAGE>
FINANCIAL HIGHLIGHTS
(in thousands except per share)
THIRD QUARTER ENDED
SEPTEMBER 30,
--------------------------- PERCENT
1997 1996 CHANGE
---------- -------- -------
EARNINGS:
Net interest income $ 11,243 $ 9,853 14%
Net earnings 4,311 3,429 26%
EARNINGS PER COMMON SHARE:
Net earnings* $ 0.54 $ 0.43
NINE MONTHS ENDED
SEPTEMBER 30,
---------------------------
1997 1996
---------- --------
EARNINGS:
Net interest income $ 32,354 $ 29,056 11%
Net earnings 11,075 9,210 20%
EARNINGS PER COMMON SHARE:
Net earnings* $ 1.37 $ 1.14
SEPTEMBER 30, DECEMBER 31,
1997 1996
------------- ------------
BALANCE SHEET ITEMS
Total assets $954,674 $900,129 6%
Loans 673,146 596,504 13%
Deposits 467,177 519,631 (10)%
Stockholders' equity 128,791 118,013 9%
Book value per share* 15.94 14.55
- ----------------------
*(adjusted for stock dividends)
<PAGE>
NATIONAL CITY BANCORPORATION
651 Nicollet Mall
Minneapolis, Minnesota 55402-1611
Telephone 612-904-8503
<TABLE> <S> <C>
<ARTICLE> 9
<CIK> 0000069968
<NAME> NATIONAL CITY BANCORP
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 63,404
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 21,750
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 126,794
<INVESTMENTS-CARRYING> 40,117
<INVESTMENTS-MARKET> 40,644
<LOANS> 673,146
<ALLOWANCE> 9,805
<TOTAL-ASSETS> 954,674
<DEPOSITS> 467,177
<SHORT-TERM> 293,369
<LIABILITIES-OTHER> 8,010
<LONG-TERM> 57,000
<COMMON> 10,139
0
0
<OTHER-SE> 118,652
<TOTAL-LIABILITIES-AND-EQUITY> 954,674
<INTEREST-LOAN> 17,199
<INTEREST-INVEST> 2,873
<INTEREST-OTHER> 491
<INTEREST-TOTAL> 20,563
<INTEREST-DEPOSIT> 4,401
<INTEREST-EXPENSE> 4,919
<INTEREST-INCOME-NET> 11,243
<LOAN-LOSSES> 502
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 7,149
<INCOME-PRETAX> 7,081
<INCOME-PRE-EXTRAORDINARY> 7,081
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,311
<EPS-PRIMARY> 0.54
<EPS-DILUTED> 0.54
<YIELD-ACTUAL> 5.17
<LOANS-NON> 866
<LOANS-PAST> 2,127
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 17,509
<ALLOWANCE-OPEN> 9,242
<CHARGE-OFFS> 158
<RECOVERIES> 219
<ALLOWANCE-CLOSE> 9,805
<ALLOWANCE-DOMESTIC> 1,470
<ALLOWANCE-FOREIGN> 67
<ALLOWANCE-UNALLOCATED> 8,268
</TABLE>
