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 June 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 June 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 June 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.
Consolidated Balance Sheets - June 30, 1997 and December 31, 1996.
Consolidated Statements of Earnings - Three months and six months ended
June 30, 1997 and 1996.
Consolidated Statements of Cash Flows - Six months ended June 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>
JUNE 30,
(IN THOUSANDS) 1997 1996
-------- --------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 6,764 $ 5,781
Adjustments to reconcile net earnings to net cash from operating
activities:
Depreciation and amortization 1,575 1,066
Amortization of securities premiums and discounts 264 270
Provision for loan losses 1,357 900
Deferred income taxes 521
(Increase) in accrued income receivable (917) (299)
(Increase) in other assets (1,808) (1,990)
(Decrease) in other liabilities (606) (504)
-------- --------
Total operating adjustments (135) (36)
-------- --------
NET CASH FROM OPERATING ACTIVITIES 6,629 5,745
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Net (increase) in loans (62,568) (26,077)
Net decrease in federal funds sold 21,820 24,590
Available-for-sale securities:
Proceeds from maturities and principal repayments 18,739 41,846
Proceeds from sale of securities
Purchases of securities (15,147) (52,715)
Held-to-maturity securities:
Proceeds from maturities and principal repayments 4,122 9,092
Proceeds from sale of securities
Purchases of securities (15,139)
Purchase of premises and equipment (1,539) (7,894)
-------- --------
NET CASH (USED IN) INVESTING ACTIVITIES (49,712) (11,158)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (decrease) in non-interest bearing and savings deposits (24,891) (27,473)
Net increase (decrease) in time deposits (11,806) 7,510
Net increase (decrease) in federal funds purchased and repurchase agreements 25,556 (2,083)
Net increase in commercial paper 32,170 13,998
Net increase in other borrowed funds 12,712 7,018
Net increase (decrease) in long-term debt 9,800
Purchase of treasury stock (1) (2)
Payment for fractional shares on stock dividends (22) (25)
-------- --------
NET CASH FROM (USED IN) FINANCING ACTIVITIES 43,518 (1,057)
-------- --------
Net increase (decrease) in cash and due from banks 435 (6,470)
Cash and due from banks at beginning of year 47,934 42,006
-------- --------
Cash and due from banks at end of period $ 48,369 $ 35,536
======== ========
SUPPLEMENTAL DISCLOSURES
Cash paid during the year for:
Interest $ 16,897 $ 15,188
Income taxes 4,586 4,602
Unrealized securities gains (losses) net of tax 103 (1,631)
</TABLE>
<PAGE>
NATIONAL CITY BANCORPORATION
Notes to the Consolidated Financial Statements
The Consolidated Balance Sheet as of June 30, 1997, the Consolidated
Statements of Earnings for the three-month and six-month periods ended June 30,
1997 and 1996 and the Consolidated Statements of Cash Flows for the six-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 June
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 June 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 second quarter ended June 30, 1997 increased to
$3,471,000, up 18 percent over 1996 earnings of $2,942,000. Earnings per share
increased to $ .42 for the second quarter of 1997, an increase of 17 percent
over earnings per share of $ .36 in the second quarter of 1996. Net earnings for
the first six months of 1997 were $6,764,000, up 17 percent over 1996 earnings
of $5,781,000, and earnings per share increased to $.83 compared with $.71 for
the same period. Earnings information is summarized below:
Second Quarter Six Months
1997 1996 1997 1996
---- ---- ---- ----
Net income $3,471 $2,942 $6,764 $5,781
Earnings per share $ .42 $ .36 $ .83 $ .71
Return on average equity 11.32% 10.80% 11.25% 10.75%
Return on average assets 1.54% 1.50% 1.53% 1.48%
Net interest income for the second quarter was $10,732,000, up
$1,229,000 or 13 percent over the second quarter of 1996. Net interest income
for the first six months of 1997 was $21,111,000, an increase of $1,908,000 or
10 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 SECOND QUARTER 1996
Resulting from:
Interest On: Total Rates Volumes
----- ----- -------
Total Earning Assets $ 2,782 $ 348 $ 2,434
Total Interest Bearing Liabilities 1,538 268 1,270
----------------------------------
Change in Net Interest Income $ 1,244 $ 80 $ 1,164
==================================
NET INTEREST INCOME CHANGE FROM FIRST SIX MONTHS 1996
Resulting from:
Interest On: Total Rates Volumes
----- ----- -------
Total Earning Assets $ 4,323 $ (250) $ 4,573
Total Interest Bearing Liabilities 2,384 45 2,339
----------------------------------
Change in Net Interest Income $ 1,939 $ (295) $ 2,234
==================================
<PAGE>
The tax equivalent net interest margin for the quarter was 5.18 percent
compared with 5.28 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 14 percent over the second quarter of 1996.
Noninterest income for the second quarter was up $70,000, or 3 percent
when compared with 1996. Noninterest income for the first six months was
$5,460,000, which was $675,000 or 14 percent higher than 1996. The largest
contributors to this increase were service charges on deposit accounts, trust
fees, and a one-time contract cancellation fee.
Noninterest expense increased $236,000, or 4 percent for the second
quarter and $436,000, or 3 percent for the first six months. The categories with
the largest increases were occupancy and depreciation expense which was related
to the relocation of the Company offices from 75 South Fifth Street to 651
Nicollet Mall, in Gaviidae Common, during the first quarter of 1996.
The operating ratio improved to 52.23 percent for the second quarter of
1997, compared to 55.94 percent for the same period last year. The improvement
was due to the increase in net interest income and the relatively modest
increase in noninterest expense.
LOAN LOSS RESERVE:
Net loan charge-offs during the second quarter were $156,000, compared
with $5,000 for the same period last year. The loan loss provision was $567,000
for the second quarter, compared with $465,000 in the second 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 June 30, 1997, the allowance for loan losses was
$9,242,000, or 1.40 percent of loans, compared to 1.43 percent at December 31,
1996. Credit quality remains strong with non-performing assets at .2 percent of
loans outstanding. At quarter end the reserve coverage of non-performing assets
was 610 percent. Activity regarding the allowance is summarized below:
<PAGE>
(in thousands)
Second Quarter Six Months
1997 1996 1997 1996
---- ---- ---- ----
Balance beginning of period $8,831 $9,000 $8,511 $8,602
Provision charge to operating expense 567 465 1,357 900
Less net loan charge-offs (156) (5) (626) (42)
---------------------------------------
Balance June 30 $9,242 $9,460 $9,242 $9,460
=======================================
LIQUIDITY AND CAPITAL RESOURCES:
The Company's average total assets were $ 900.4 million for the
three-months ended June 30, 1997, up from $ 789.1 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 the Company's commercial finance subsidiary,
Diversified Business Credit, Inc. (DBCI). In addition to deposits and short-term
borrowings, the Company had long-term debt of $ 58 million at June 30, 1997,
principally 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:
June 30,
1997 1996
---- ----
RISK-BASED CAPITAL RATIOS
Tier I Capital 15.34% 15.75%
Tier II Capital 16.47% 17.00%
LEVERAGE RATIO 13.14% 13.84%
The Company paid a 10% stock dividend on June 5, 1997, to stockholders
of record May 5, 1997.
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
<PAGE>
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 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. Submission of matters to a vote of security holders.
Election of Directors:
At the annual stockholders' meeting held on April 21, 1997, the
stockholders re-elected Terry L. Andreas, Marvin Borman, Kenneth H.
Dahlberg, and Thomas E. Holloran as directors.
Affirmative Negative
Votes Votes Abstentions
Terry L. Andreas 6,765,877 21,601 586,993
Marvin Borman 6,777,686 9,792 586,993
Kenneth H. Dahlberg 6,767,918 19,560 586,993
Thomas E. Holloran 6,777,737 9,741 586,993
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 June
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: August 8, 1997 By: /S/ David L. Andreas
Chairman & Chief Executive Officer
Dated: August 8, 1997 By: /S/Thomas J. Freed
Secretary and Controller
(Principal Financial Officer)
[LOGO]
NATIONAL CITY
BANCORPORATION
1997
SECOND QUARTER
REPORT
SIX MONTHS
ENDED
JUNE 30, 1997
<PAGE>
NATIONAL CITY BANCORPORATION
CHANGE OF ADDRESS FOR SHAREHOLDER
National City Bank of Minneapolis
Stock Transfer Department
P.O. Box E1919
Minneapolis, Minnesota 55480-1919
PLEASE CHANGE MY ADDRESS TO:
Name___________________________________________________________________________
(PRINT NAME EXACTLY AS IT APPEARS ON STOCK CERTIFICATE)
Street ________________________________________________________________________
City __________________________________________________________________________
State__________________________________________ Zip Code ______________________
Date __________________________________________________________________________
Old Address
Street ________________________________________________________________________
City __________________________________________________________________________
State__________________________________________ Zip Code ______________________
Signature _____________________________________________________________________
<PAGE>
FINANCIAL HIGHLIGHTS
(in thousands except per share)
SECOND QUARTER ENDED
JUNE 30,
-------------------- PERCENT
1997 1996 CHANGE
------- ------- -------
EARNINGS:
Net interest income $10,732 $ 9,503 13%
Net earnings 3,471 2,942 18%
EARNINGS PER COMMON SHARE:
Net earnings $ 0.42 $ 0.36
SIX MONTHS ENDED
JUNE 30,
--------------------
1997 1996
------- -------
EARNINGS:
Net interest income $21,111 $19,203 10%
Net earnings 6,764 5,781 17%
EARNINGS PER COMMON SHARE:
Net earnings $0.83 $ 0.71
JUNE 30, DECEMBER 31,
1997 1996
-------- --------
BALANCE SHEET ITEMS
Total assets $950,241 $900,129 6%
Loans 659,072 596,504 10%
Deposits 482,933 519,631 (7)%
Stockholders' equity 124,856 118,013 6%
Book value per share 15.39 14.55
(adjusted for stock dividends)
<PAGE>
DIRECTORS OF NATIONAL CITY
BANCORPORATION
David L. Andreas
CHAIRMAN OF THE BOARD AND
CHIEF EXECUTIVE OFFICER
National City Bancorporation
Wendell R. Anderson*
OF COUNSEL
Larkin, Hoffman, Daly and
Lindgren Ltd.
L.W. Andreas
RETIRED CHAIRMAN OF
THE BOARD AND
CHIEF EXECUTIVE OFFICER
National City Bancorporation
Terry L. Andreas
CHAIRMAN OF THE BOARD
School for Field Studies
Beverly, Massachusetts
Marvin Borman*
PARTNER
Maslon, Edelman, Borman
and Brand
Kenneth H. Dahlberg
CHAIRMAN OF THE BOARD
Dahlberg, Inc.
John H. Daniels, Jr.*
PARTNER
Willeke and Daniels
Thomas E. Holloran*
PROFESSOR, GRADUATE PROGRAMS
IN MANAGEMENT
University of St. Thomas
C. Bernard Jacobs
RETIRED PRESIDENT AND
CHIEF EXECUTIVE OFFICER
National City Bancorporation
RETIRED CHAIRMAN OF THE BOARD
National City Bank
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
OFFICERS OF NATIONAL CITY
BANCORPORATION
David L. Andreas
CHAIRMAN OF THE BOARD AND
CHIEF EXECUTIVE OFFICER
Thomas J. Freed
SECRETARY AND CONTROLLER
PRINCIPAL OFFICERS OF
SUBSIDIARIES
DIVERSIFIED BUSINESS
CREDIT INC.
David L. Andreas
CHAIRMAN OF THE BOARD
Robert L. Olson
PRESIDENT AND
CHIEF EXECUTIVE OFFICER
NATIONAL CITY BANK
OF MINNEAPOLIS
David C. Malmberg
NON-EXECUTIVE CHAIRMAN
OF THE BOARD
David L. Andreas
PRESIDENT AND
CHIEF EXECUTIVE OFFICER
William J. Klein
EXECUTIVE VICE PRESIDENT
CLIENT SERVICES
Craig E. Cina
SENIOR VICE PRESIDENT
MARKETING
Thomas J. Freed
SENIOR VICE PRESIDENT AND
CHIEF FINANCIAL OFFICER
Donald W. Kjonaas
SENIOR VICE PRESIDENT
OPERATIONS
Claudith Washington
SENIOR VICE PRESIDENT
HUMAN RESOURCES
<PAGE>
NATIONAL CITY BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Cash and due from banks $ 48,369 $ 47,934
Federal funds sold and resale agreements 38,300 60,120
Available-for-sale securities:
U.S. Treasury 23,928 23,903
U.S. Government agencies 9,868 9,661
Mortgage-backed 90,766 94,671
Other securities 4,955 4,955
--------- ---------
Total available-for-sale securities 129,517 133,190
Held-to-maturity securities:
Mortgage-backed 42,308 31,254
Other securities 203 251
--------- ---------
Total held-to-maturity securities 42,511 31,505
(approximate market value: 1997-$42,764; 1996-$31,812)
Loans 659,072 596,504
Less allowance for loan losses (9,242) (8,511)
--------- ---------
Net loans 649,830 587,993
Premises and equipment 11,974 11,798
Accrued interest receivable 7,223 6,306
Customer acceptance liability 213 787
Other assets 22,304 20,496
--------- ---------
Total assets $ 950,241 $ 900,129
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest bearing $ 137,542 $ 162,895
Interest bearing 345,391 356,736
--------- ---------
Total deposits 482,933 519,631
Federal funds purchased and repurchase agreements 122,196 96,640
Commercial paper 130,277 98,107
Other short-term borrowed funds 24,078 11,366
Acceptances outstanding 213 787
Other liabilities 7,968 7,665
Long-term debt 57,720 47,920
--------- ---------
Total liabilities 825,385 782,116
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 (303) (405)
Retained earnings 20,264 30,001
--------- ---------
Subtotal 124,856 118,013
Less common stock in treasury at cost:
1997 -- 5 shares; 1996 -- 16 shares
--------- ---------
Total stockholders' equity 124,856 118,013
--------- ---------
Total liabilities and stockholders' equity $ 950,241 $ 900,129
========= =========
</TABLE>
<PAGE>
NATIONAL CITY BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands except per share)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1997 1996 1997 1996
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INTEREST INCOME
Interest and fees on loans $ 16,360 $ 14,050 $ 31,693 $ 28,156
Interest on federal funds sold & resale agreements 338 112 596 324
Interest and dividends on securities: 2,810 2,579 5,626 5,143
---------- ---------- ---------- ----------
Total interest income 19,508 16,741 37,915 33,623
INTEREST EXPENSE
Interest on deposits 3,883 3,493 7,746 7,086
Interest on short-term borrowed funds 3,911 2,941 7,234 5,709
Interest on long-term debt 982 804 1,824 1,625
---------- ---------- ---------- ----------
Total interest expense 8,776 7,238 16,804 14,420
---------- ---------- ---------- ----------
Net interest income 10,732 9,503 21,111 19,203
Provision for loan losses 567 465 1,357 900
---------- ---------- ---------- ----------
Net interest income after provision for loan losses 10,165 9,038 19,754 18,303
NONINTEREST INCOME
Service charges on deposit accounts 527 521 1,182 1,009
Fees for other customer services 466 507 838 980
Trust fees 1,229 1,102 2,513 2,251
Other 258 280 927 545
---------- ---------- ---------- ----------
Total noninterest income 2,480 2,410 5,460 4,785
NONINTEREST EXPENSES
Salaries and employee benefits 3,759 3,731 7,638 7,632
Net occupancy expense 780 785 1,544 1,460
Equipment rentals, depreciation & maintenance 880 688 1,772 1,367
Other 1,481 1,460 3,072 3,131
---------- ---------- ---------- ----------
Total noninterest expense 6,900 6,664 14,026 13,590
---------- ---------- ---------- ----------
Earnings before taxes 5,745 4,784 11,188 9,498
Applicable income taxes 2,274 1,842 4,424 3,717
---------- ---------- ---------- ----------
Net earnings $ 3,471 $ 2,942 $ 6,764 $ 5,781
========== ========== ========== ==========
Net earnings per common share $ 0.42 $ 0.36 $ 0.83 $ 0.71
Average common and common equivalent shares outstanding 8,110,840 8,111,250 8,110,853 8,111,275
</TABLE>
<PAGE>
TO OUR STOCKHOLDERS:
Net earnings were $3,471,000 for the second quarter of 1997, up 18 percent,
compared with $2,942,000 in the second quarter of 1996. Earnings per share
increased to $0.42 compared with $0.36 in the second quarter of 1996.
Second quarter net interest income was $10,732,000, which was higher by
$1,229,000, or 12.9 percent, than in the second quarter of 1996. The improvement
was primarily attributable to an increase in average loans, which were up $82.1
million, or 14.7 percent from the second 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
5.18 percent for the second quarter compared with 5.28 percent for the same
period last year. Noninterest income for the second quarter was $70,000 or 2.9
percent more than the second quarter of 1996. Noninterest expense for the second
quarter was $236,000 or 3.5 percent more than the second quarter of 1996. The
increase occurred mainly in depreciation related to our new quarters, offset
partially by lower personnel costs.
Net loan charge-offs for the second quarter were $156,000. Additional loss
provisions of $567,000 were added to the reserve during the quarter. As a
result, the Company's reserve for loan losses at quarter-end was $9,242,000 or
1.40 percent of loans outstanding compared to $8,511,000 and 1.43 percent at
December 31, 1996. Nonperforming assets, those loans on which interest is no
longer expected to be earned, were down to $1.5 million or .23 percent of total
loans at June 30, 1997 compared with $3.2 million or .54 percent of total loans
at December 31, 1996. The increased reserve and lower nonperforming assets
combined to improve the reserve coverage of these assets to 610 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>
BULK RATE
U.S. POSTAGE
PAID
MINNEAPOLIS, MN
PERMIT NO. 2816
NATIONAL CITY BANCORPORATION
651 Nicollet Mall
Minneapolis, Minnesota 55402-1611
Telephone 612-904-8503
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 48,369
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 38,300
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 129,517
<INVESTMENTS-CARRYING> 42,511
<INVESTMENTS-MARKET> 42,764
<LOANS> 659,072
<ALLOWANCE> 9,242
<TOTAL-ASSETS> 950,241
<DEPOSITS> 482,933
<SHORT-TERM> 276,551
<LIABILITIES-OTHER> 7,968
<LONG-TERM> 57,720
10,139
0
<COMMON> 0
<OTHER-SE> 114,717
<TOTAL-LIABILITIES-AND-EQUITY> 950,241
<INTEREST-LOAN> 16,360
<INTEREST-INVEST> 2,810
<INTEREST-OTHER> 338
<INTEREST-TOTAL> 19,508
<INTEREST-DEPOSIT> 3,883
<INTEREST-EXPENSE> 8,776
<INTEREST-INCOME-NET> 10,732
<LOAN-LOSSES> 567
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 6,900
<INCOME-PRETAX> 5,745
<INCOME-PRE-EXTRAORDINARY> 5,745
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,471
<EPS-PRIMARY> 0.42
<EPS-DILUTED> 0.42
<YIELD-ACTUAL> 5.17
<LOANS-NON> 1,136
<LOANS-PAST> 379
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 19,396
<ALLOWANCE-OPEN> 8,831
<CHARGE-OFFS> 173
<RECOVERIES> 17
<ALLOWANCE-CLOSE> 9,242
<ALLOWANCE-DOMESTIC> 1,680
<ALLOWANCE-FOREIGN> 95
<ALLOWANCE-UNALLOCATED> 7,467
</TABLE>
