<PAGE> 1
FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
April 15, 1999
------------------------
(Date of Report)
NATIONAL CITY CORPORATION
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 1-10074 34-1111088
- --------------------------------------------------------------------------------
(State or other jurisdiction (Commission IRS Employer
of incorporation) File Number) Identification No.)
1900 East Ninth Street, Cleveland, Ohio 44114
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(216) 575-2000
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
<PAGE> 2
Item 5. Other Events
------------
On April 15, 1999, the Registrant issued a News Release reporting
earnings for the first quarter of Fiscal Year 1999.
Reference is made to the News Release, dated April 15, 1999, a copy
of which is filed as Exhibit 99.1 to this Current Report on Form 8-K and is
incorporated herein by reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
------------------------------------------------------------------
a) FINANCIAL STATEMENTS OF BUSINESS ACQUIRED: None
b) PRO FORMA FINANCIAL INFORMATION: None.
c) EXHIBITS:
--------
99.1 News Release, dated April 15, 1999 incorporated HEREIN by
reference.
<PAGE> 3
Signatures
----------
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: April 15, 1999 By /s/ David L. Zoeller
--------------------
David L. Zoeller
Senior Vice President
and General Counsel
<PAGE> 1
Exhibit 99.1
NATIONAL CITY NATIONAL CITY CORPORATION
CORPORATION National City Center
P.O. Box 5756
Cleveland, OH 44101-0756
(216) 575-2000
FOR MORE INFORMATION CONTACT:
Jeffrey C. Douglas
Vice President, Financial Communications
(216) 222-9849
Julie I. Sabroff
Vice President, Investor Relations
(216) 575-2467
www.national-city.com
For Immediate Release
NATIONAL CITY REPORTS RECORD FIRST QUARTER EARNINGS
CLEVELAND, Ohio--April 15, 1999--National City Corporation (NYSE:NCC)
today reported first quarter net income of $351.0 million or $1.08 per diluted
share. Excluding gains and losses on divestitures and merger and restructuring
charges as described below, first quarter earnings were $347.9 million or $1.07
per share, up 16.9% from $297.6 million or $.92 per share in 1998. On this
basis, returns on average common equity and average assets were 20.94% and
1.65%, respectively, compared to 19.23% and 1.61%, respectively, for the same
period last year.
Included in reported first quarter 1999 net income were gains on the
sales of National City's interests in Electronic Payment Services, Inc. and
Stored Value Systems, Inc., and estimated losses on the pending disposition of
certain business lines of National City's 88% owned item processing subsidiary,
National Processing, Inc. (NYSE: NAP). In the aggregate, these amounted to a net
gain of $36.8 million pre-tax or $3.1 million after-tax and increased reported
net income by $.01 per share. The first quarter of 1998 included after-tax
<PAGE> 2
merger and restructuring expenses of $193.9 million or $.60 per diluted share,
incurred in connection with the mergers with First of America Bank Corporation
and Fort Wayne National Corporation.
Chairman and CEO, David A. Daberko noted, "The first quarter results
are encouraging on several fronts. First, we are seeing revenue growth in the
former First of America franchise; second, volumes are strong across many
businesses and product lines, such as mortgage banking, commercial finance, loan
syndications and asset management. At the same time, expense levels have begun
to reflect the benefits of the merger integrations completed late last year and
should continue to decline over the next several quarters."
Total revenues on a tax-equivalent basis, grew 8.3% to $1.3 billion,
compared to $1.2 billion in the first quarter of 1998, reflecting strength in
both net interest income and fee income.
Excluding the net gain on divestitures referenced above, fees and other
income increased 12.2% to $554.1 million in the first quarter of 1999 compared
to $493.8 million in the first quarter of 1998.
In the first quarter of 1999, after-tax securities gains totaled $15.4
million or $.05 per diluted share, compared to after-tax gains of $32.0 million
or $.10 per diluted share in the fourth quarter of 1998, and $.7 million in the
first quarter of 1998.
Noninterest expenses, excluding merger and restructuring expenses, were
$739.2 million in the first quarter of 1999. On a linked quarter basis, expenses
were down $27.7 million or 3.6% from the fourth quarter of 1998, and $43.2
million or 5.5% from the third quarter, primarily reflecting savings from the
integration of the First of America and Fort Wayne mergers.
2
<PAGE> 3
In the first quarter of 1999, average loans increased 9.8% to $57.3
billion compared to $52.2 billion a year ago. Growth was driven by commercial
and consumer installment loans, including loans acquired as part of the Fort
Wayne purchase, offset by the planned run-off of one- to four family residential
mortgages as those loans were replaced with higher yielding assets.
Nonperforming assets at March 31, 1999 were $271.9 million or .47% of
total loans and real estate owned, compared to .52% last year. The allowance for
loan losses was $970.3 million or 1.69% of total loans. For the first quarter of
1999, net charge-offs totaled $68.0 million or .48% of average loans compared to
.41% for the same period last year. Net charge-offs were covered by the
provision in both periods.
Total assets at March 31, 1999 were $84.1 billion and stockholders'
equity was $6.3 billion. Equity capital as a percentage of assets was 7.44% at
March 31, 1999 compared to 8.46% a year ago.
Mr. Daberko's comments contain forward-looking statements that involve
significant risks and uncertainties including changes in general economic and
financial market conditions and the Corporation's ability to execute its
business plans. Although management believes that the expectations reflected in
such forward-looking statements are reasonable, actual results may differ
materially.
National City Corporation is an $84 billion diversified financial
services company headquartered in Cleveland, Ohio. National City operates banks
and other financial services subsidiaries principally in Ohio, Michigan,
Pennsylvania, Indiana, Kentucky and Illinois.
3
<PAGE> 4
UNAUDITED
National City Corporation
Financial Highlights
(Dollars in Millions Except Per Share Amounts)
<TABLE>
<CAPTION>
1999 1998
----------------------------------------------------- 1Q99/
First Fourth Third Second First 1Q98
Quarter Quarter Quarter Quarter Quarter % Change
------- ------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
Tax-equivalent net interest
income .......................... $ 764.7 $ 757.9 $ 745.8 $ 739.9 $ 708.3 8.0 %
Provision for loan losses ......... 68.0 56.9 45.2 43.0 56.3 20.8
Fee and other income - recurring .. 554.1 576.3 555.5 554.1 493.8 12.2
Securities gains .................. 23.7 49.3 64.4 19.7 1.1 -
Noninterest expense - recurring ... 739.2 766.8 782.4 749.2 699.3 5.7
Net income before non -
recurring items ................. 347.9 359.3 344.5 331.2 297.6 16.9
Nonrecurring items (1):
Pre-tax ......................... 36.8 (104.7) - - (274.7) -
After-tax ....................... 3.1 (68.0) - - (193.9) -
Net income ........................ 351.0 291.3 344.5 331.2 103.7 238.5
Net income per common share:
Basic ......................... 1.09 .89 1.05 1.01 .33 230.3
Diluted ....................... 1.08 .88 1.03 .99 .32 237.5
Diluted - adjusted (2) ........ 1.07 1.06 1.03 .99 .92 16.3
Diluted - cash basis (2)(3) ... 1.12 1.13 1.09 1.04 .95 17.9
Dividends paid per common share ... .52 .48 .48 .46 .46 13.0
Performance Ratios (2)
Return on average common equity ... 20.94 % 19.43 % 19.00 % 19.47 % 19.23 %
Return on average assets .......... 1.65 1.69 1.69 1.66 1.61
Net interest margin ............... 4.02 4.00 4.10 4.15 4.19
Overhead ratio .................... 24.21 25.15 30.42 26.36 29.02
Efficiency ratio .................. 56.05 57.48 60.12 57.90 58.17
Assets ............................ $84,094 $88,246 $83,135 $81,258 $80,716 4.2 %
Loans and mortgage loans
held for sale ................... 59,832 61,519 58,684 57,478 56,453 6.0
Securities ........................ 15,264 16,119 15,425 13,898 15,635 (2.4)
Deposits .......................... 52,051 58,247 54,228 54,832 55,387 (6.0)
Stockholders' equity .............. 6,257 7,013 7,273 7,019 6,826 (8.3)
Book value per common share ....... 19.80 21.38 21.91 21.25 20.73 (4.5)
Market value per common share ..... 66.38 72.50 65.94 71.00 73.31 (9.5)
</TABLE>
- -------------------------------------
(1) Represents net gains on asset disposals in 1999 (EPS - $95.7 million
pre-tax, $62.2 million after-tax; SVS - $6.1 million pre-tax, $4.0 million
after-tax; NPI business lines - net of minority interest ($65.0) million
pre- tax, ($63.1) million after-tax) and merger expenses in 1998.
(2) Excluding after-tax effects of nonrecurring items.
(3) Excludes amortization of goodwill and other intangible assets.
4
<PAGE> 5
UNAUDITED
National City Corporation
Consolidated Statements of Income
(Dollars in Thousands Except Per Share Amounts)
<TABLE>
<CAPTION>
1999 1998
---------- -------------------------------------------------------------
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Interest Income:
Loans ............................... $1,212,303 $1,232,070 $1,229,009 $1,210,235 $1,140,421
Securities:
Taxable ............................ 223,913 215,406 207,384 207,228 206,412
Exempt from Federal income taxes ... 10,199 9,524 13,145 14,562 11,600
Federal funds sold and security
resale agreements ................. 11,013 12,852 16,642 8,293 6,006
Other short-term investments ........ 3,062 2,407 4,302 4,973 4,206
---------- ---------- ---------- ---------- ----------
Total interest income ............. 1,460,490 1,472,259 1,470,482 1,445,291 1,368,645
Interest Expense:
Deposits ............................ 419,023 451,800 475,951 472,064 446,461
Federal funds borrowed and
security repurchase agreements .... 99,694 102,602 96,416 81,101 73,763
Borrowed funds ...................... 28,484 30,589 38,078 48,564 51,276
Long-term debt ...................... 157,154 140,083 123,672 113,439 99,170
---------- ---------- ---------- ---------- ----------
Total interest expense ............ 704,355 725,074 734,117 715,168 670,670
---------- ---------- ---------- ---------- ----------
Net interest income ............... 756,135 747,185 736,365 730,123 697,975
Provision for loan losses ........... 68,034 56,888 45,212 43,033 56,267
---------- ---------- ---------- ---------- ----------
Net interest income after
provision for loan losses ........ 688,101 690,297 691,153 687,090 641,708
Noninterest Income:
Item processing revenue ............. 121,703 130,009 124,268 117,686 112,540
Service charges on deposit
accounts ........................... 99,863 98,649 98,472 96,104 91,713
Trust and investment management
fees ............................... 81,847 79,802 74,565 79,729 76,954
Card-related fees ................... 45,310 48,479 56,415 49,383 46,891
Mortgage banking revenue ............ 92,995 89,412 79,362 97,223 61,250
Other ............................... 149,173 129,915 122,435 114,004 104,423
---------- ---------- ---------- ---------- ----------
Total fees and other income ....... 590,891 576,266 555,517 554,129 493,771
Securities gains .................... 23,688 49,242 64,451 19,714 1,052
---------- ---------- ---------- ---------- ----------
Total noninterest income .......... 614,579 625,508 619,968 573,843 494,823
Noninterest Expense:
Salaries and other personnel ........ 400,764 405,050 409,279 396,574 383,854
Equipment ........................... 52,761 58,618 51,054 51,471 51,728
Net occupancy ....................... 54,127 52,519 51,737 49,671 48,737
Assessments and taxes ............... 15,146 13,321 15,395 12,097 11,689
Merger and restructuring ............ - 104,678 - - 274,698
Other ............................... 216,404 237,348 254,935 239,365 203,295
---------- ---------- ---------- ---------- ----------
Total noninterest expense ......... 739,202 871,534 782,400 749,178 974,001
---------- ---------- ---------- ---------- ----------
Income before income taxes ........... 563,478 444,271 528,721 511,755 162,530
Income tax expense ................... 212,459 153,012 184,265 180,511 58,808
---------- ---------- ---------- ---------- ----------
Net income ........................ $ 351,019 $ 291,259 $ 344,456 $ 331,244 $ 103,722
---------- ---------- ---------- ---------- ----------
Preferred dividends ............... 415 537 546 1,099 -
---------- ---------- ---------- ---------- ----------
Net income applicable to common
stock ............................ $ 350,604 $ 290,722 $ 343,910 $ 330,145 $ 103,722
========== ========== ========== ========== =========
Net Income Per Common Share:
Basic ............................. $1.09 $.89 $1.05 $1.01 $.33
Diluted ........................... $1.08 $.88 $1.03 $.99 $.32
</TABLE>
5
<PAGE> 6
UNAUDITED
National City Corporation
Consolidated Period-End Balance Sheets
(Dollars in Thousands)
<TABLE>
<CAPTION>
1999 1998
------------ ------------------------------------------------------
First Fourth Third Second First
Assets Quarter Quarter Quarter Quarter Quarter
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Loans:
Commercial ................................... $22,306,928 $22,243,114 $20,745,705 $20,220,235 $19,996,064
Real estate - commercial ..................... 6,309,277 6,251,879 6,475,950 6,518,933 6,491,789
Real estate - residential .................... 8,693,757 9,664,115 9,435,870 9,761,171 10,110,368
Consumer ..................................... 15,022,782 14,822,759 14,291,552 13,473,157 12,834,912
Credit card .................................. 1,846,719 1,852,635 1,797,840 1,830,355 1,855,401
Home equity .................................. 3,133,121 3,176,664 3,188,590 3,113,685 3,030,871
----------- ----------- ----------- ----------- -----------
Total loans ................................ 57,312,584 58,011,166 55,935,507 54,917,536 54,319,405
Allowance for loan losses .................. 970,336 970,243 975,100 976,469 976,464
----------- ----------- ----------- ----------- -----------
Net loans .................................. 56,342,248 57,040,923 54,960,407 53,941,067 53,342,941
Mortgage loans held for sale .................... 2,519,462 3,507,487 2,748,139 2,560,612 2,133,398
Securities available for sale, at market ........ 15,263,581 16,119,370 15,424,507 13,898,032 15,635,191
Federal funds sold and security resale
agreements .................................... 978,138 930,492 1,146,383 1,333,374 475,890
Other short-term investments .................... 101,696 218,149 100,292 80,220 111,687
Cash and demand balances due from banks ......... 3,443,365 4,783,491 3,406,647 4,111,415 3,745,235
Properties and equipment ........................ 1,129,305 1,150,210 1,134,480 1,081,876 1,037,159
Accrued income and other assets ................. 4,316,701 4,495,510 4,213,824 4,251,272 4,234,687
----------- ----------- ----------- ----------- -----------
Total Assets .............................. $84,094,496 $88,245,632 $83,134,679 $81,257,868 $80,716,188
=========== =========== =========== =========== ===========
Liabilities and Stockholders' Equity
Liabilities:
Noninterest bearing deposits .................... $11,200,312 $10,911,926 $10,158,773 $10,750,524 $10,449,115
NOW and money market accounts ................... 16,800,510 18,610,832 17,735,380 17,742,088 17,312,998
Savings accounts ................................ 3,957,576 4,021,113 4,051,228 4,263,384 4,359,381
Time deposits of individuals .................... 16,821,451 17,450,904 18,013,811 18,417,699 18,980,294
Other time deposits ............................. 1,340,458 2,280,973 2,475,572 2,484,797 2,482,568
Deposits in overseas offices .................... 1,930,292 4,971,161 1,793,442 1,173,497 1,802,535
----------- ----------- ----------- ----------- -----------
Total deposits .............................. 52,050,599 58,246,909 54,228,206 54,831,989 55,386,891
Federal funds borrowed and security
repurchase agreements ....................... 8,753,759 9,427,309 8,662,013 6,069,853 7,967,150
Borrowed funds .................................. 2,840,983 2,117,916 3,122,562 4,330,313 2,762,173
Long-term debt .................................. 11,999,109 9,009,448 7,788,754 6,916,808 5,533,614
Corporation-obligated mandatorily redeemable
capital securities of subsidiary trusts
holding solely debentures of the
Corporation ................................. 679,894 679,894 679,894 679,894 679,894
Accrued expenses and other liabilities .......... 1,513,243 1,751,248 1,379,855 1,410,015 1,560,664
----------- ----------- ----------- ----------- -----------
Total Liabilities ........................... 77,837,587 81,232,724 75,861,284 74,238,872 73,890,386
Stockholders' Equity:
Preferred ..................................... 30,513 36,098 36,556 36,592 36,999
Common ........................................ 6,226,396 6,976,810 7,236,839 6,982,404 6,788,803
----------- ----------- ----------- ----------- -----------
Total Stockholders' Equity .................. 6,256,909 7,012,908 7,273,395 7,018,996 6,825,802
Total Liabilities and Stockholders' Equity .. $84,094,496 $88,245,632 $83,134,679 $81,257,868 $80,716,188
=========== =========== =========== =========== ===========
</TABLE>
6
<PAGE> 7
UNAUDITED
National City Corporation
Consolidated Average Balance Sheets
(Dollars in Millions)
<TABLE>
<CAPTION>
1999 1998
------- --------------------------------------------------
First Fourth Third Second First
Assets Quarter Quarter Quarter Quarter Quarter
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Earning Assets:
Loans:
Commercial ........................... $28,459 $27,923 $26,672 $26,735 $24,777
Real estate - residential ............ 8,926 9,327 9,505 9,844 9,885
Consumer ............................. 14,956 14,491 13,964 13,107 12,546
Credit card .......................... 1,829 1,818 1,818 1,861 1,944
Home equity .......................... 3,149 3,193 3,144 3,074 3,006
------- ------- ------- ------- -------
Total loans ....................... 57,319 56,752 55,103 54,621 52,158
Mortgage loans held for sale ........... 2,976 2,991 2,525 2,088 1,330
Securities ............................. 15,126 14,500 13,614 13,874 13,728
Federal funds sold and security
resale agreements .................... 945 1,157 1,177 713 448
Other short-term investments ........... 148 113 110 118 125
------- ------- ------- ------- -------
Total earning assets ................ 76,514 75,513 72,529 71,414 67,789
Allowance for loan losses ............... (985) (988) (994) (995) (958)
Market value appreciation of
securities available for sale ......... 377 509 511 564 537
Cash and demand balances due
from banks ............................ 4,068 3,826 3,685 3,616 3,359
Properties and equipment ................ 1,145 1,148 1,124 1,055 1,042
Accrued income and other assets ......... 4,401 4,200 4,207 4,273 3,000
------- ------- ------- ------- -------
Total Assets ...................... $85,520 $84,208 $81,062 $79,927 $74,769
======= ======= ======= ======= =======
Liabilities and Stockholders' Equity
Liabilities:
NOW and money market accounts .......... $16,899 $18,181 $17,890 $17,628 $16,158
Savings accounts ....................... 3,955 4,033 4,157 4,282 4,169
Time deposits of individuals ........... 17,135 17,795 18,222 18,640 18,406
Other time deposits .................... 1,757 2,472 2,505 2,536 1,940
Deposits in overseas offices ........... 3,030 2,050 1,785 1,420 1,572
------- ------- ------- ------- -------
Total interest bearing deposits ..... 42,776 44,531 44,559 44,506 42,245
------- ------- ------- ------- -------
Federal funds borrowed and security
repurchase agreements ............... 9,004 9,195 7,431 6,433 5,881
Borrowed funds ......................... 2,838 2,515 2,644 3,395 3,499
Long-term debt ......................... 11,301 9,292 7,962 7,235 6,264
------- ------- ------- ------- -------
Total interest bearing liabilities .. 65,919 65,533 62,596 61,569 57,889
Noninterest bearing deposits ........... 11,681 10,168 10,051 10,053 9,392
Accrued expenses and other
liabilities .......................... 1,159 1,144 1,195 1,466 1,212
------- ------- ------- ------- -------
Total Liabilities ................. 78,759 76,845 73,842 73,088 68,493
Stockholders' Equity:
Preferred ............................. 33 36 37 37 -
Common ................................ 6,728 7,327 7,183 6,802 6,276
------- ------- ------- ------- -------
Total Stockholders' Equity ........ 6,761 7,363 7,220 6,839 6,276
------- ------- ------- ------- -------
Total Liabilities and
Stockholders' Equity ........... $85,520 $84,208 $81,062 $79,927 $74,769
======= ======= ======= ======= =======
</TABLE>
7
<PAGE> 8
UNAUDITED
National City Corporation
Average Balances and Rates on a Tax Equivalent Basis
For the Three Months Ended March 31, 1999 and 1998
(Dollars in Millions)
<TABLE>
<CAPTION>
1999 1998
---------------------------------------- -------------------------------------
Tax Tax
Average Equivalent Average Average Equivalent Average
Assets Balance Interest Rate Balance Interest Rate
------- ---------- ------- ------- ---------- -------
<S> <C> <C> <C> <C> <C> <C>
Earning Assets:
Loans:
Commercial .............................. $28,459 $ 553.6 7.89 % $24,777 $ 525.3 8.56 %
Real estate - residential * ............ 11,902 215.3 7.24 11,215 212.6 7.58
Consumer ................................ 14,956 313.3 8.50 12,546 271.6 8.78
Credit card ............................. 1,829 59.6 13.22 1,944 67.3 14.03
Home equity ............................. 3,149 72.0 9.27 3,006 67.3 9.08
------- -------- ----- ------- -------- -----
Total loans .......................... 60,295 1,213.8 8.14 53,488 1,144.1 8.64
Securities:
Taxable ................................. 14,227 223.9 6.30 12,890 207.4 6.45
Tax-exempt .............................. 899 17.3 7.68 838 17.3 8.26
------- -------- ----- ------- -------- -----
Total securities ...................... 15,126 241.2 6.38 13,728 224.7 6.56
Federal funds sold ........................ 43 0.5 4.79 70 0.8 4.78
Security resale agreements ................ 902 10.5 4.73 378 5.2 5.56
Other short-term investments .............. 148 3.1 8.38 125 4.2 13.65
------- -------- ----- ------- -------- -----
Total earning assets ................... 76,514 1,469.1 7.75 % 67,789 1,379.0 8.20 %
-------- --------
Allowance for loan losses .................. (985) (958)
Market value appreciation of
securities available for sale ............ 377 537
Noninterest earning assets ................. 9,614 7,401
------- -------
Total Assets ......................... $85,520 $74,769
======= =======
Liabilities and Stockholders' Equity
Liabilities:
NOW and money market accounts ............. $16,899 $ 126.5 3.04 % $16,158 $ 125.5 3.15 %
Savings accounts .......................... 3,955 16.9 1.73 4,169 21.7 2.11
Time deposits of individuals .............. 17,135 219.3 5.19 18,406 252.4 5.56
Other time deposits ....................... 1,757 21.4 4.94 1,940 25.9 5.42
Deposits in overseas offices .............. 3,030 35.0 4.68 1,572 21.0 5.42
Federal funds borrowed .................... 3,970 47.8 4.89 2,687 36.4 5.50
Security repurchase agreements ............ 5,034 51.9 4.18 3,194 37.3 4.67
Borrowed funds ............................ 2,838 28.5 4.22 3,499 51.3 5.93
Long-term debt ............................ 11,301 157.1 5.60 6,264 99.2 6.42
------- -------- ----- ------- -------- -----
Total interest bearing liabilities ...... 65,919 704.4 4.33 57,889 670.7 4.67
-------- ----- -------- -----
Noninterest bearing liabilities ............ 12,840 10,604
------- -------
Total Liabilities .................... 78,759 68,493
Stockholders' Equity ....................... 6,761 6,276
------- -------
Total Liabilities and Stockholders'
Equity ............................ $85,520 $74,769
======= =======
Net interest income and interest
spread ................................... $ 764.7 3.42 % $ 708.3 3.53 %
======== ===== ======== =====
Net interest margin ........................ 4.02 % 4.19 %
===== =====
</TABLE>
* Includes mortgage loans held for sale.
8
<PAGE> 9
UNAUDITED
National City Corporation
Selected Financial Information
<TABLE>
<CAPTION>
1999 1998
-------- ----------------------------------------------------------
First Fourth Third Second First
(Dollars in Thousands) Quarter Quarter Quarter Quarter Quarter
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Allowance for Loan Losses:
Balance at beginning of period .... $970,243 $975,100 $976,469 $976,464 $941,874
Provision ......................... 68,034 56,888 45,212 43,033 56,267
Allowances related to loans
acquired (sold) ................. 93 (1,790) (1,388) - 30,679
Charge-offs:
Commercial ...................... 15,881 17,257 13,159 10,504 12,077
Real estate - residential ....... 1,702 3,501 2,058 1,504 1,923
Consumer ........................ 55,671 40,435 37,732 34,324 42,435
Credit card ..................... 27,106 23,843 21,434 24,694 25,710
Home equity ..................... 2,009 1,716 2,563 2,233 2,283
-------- -------- -------- -------- --------
Total charge-offs ............. 102,369 86,752 76,946 73,259 84,428
-------- -------- -------- -------- --------
Recoveries:
Commercial ...................... 6,423 6,334 10,784 7,074 8,378
Real estate - residential ....... 143 343 114 240 9
Consumer ........................ 21,437 14,888 14,863 17,187 17,392
Credit card ..................... 5,326 4,406 4,765 5,066 5,588
Home equity ..................... 1,006 826 1,227 664 705
-------- -------- -------- -------- --------
Total recoveries .............. 34,335 26,797 31,753 30,231 32,072
-------- -------- -------- -------- --------
Net charge-offs ................... 68,034 59,955 45,193 43,028 52,356
-------- -------- -------- -------- --------
Balance at end of period .......... $970,336 $970,243 $975,100 $976,469 $976,464
======== ======== ======== ======== ========
(Dollars in Millions)
Nonperforming Assets:
Nonaccrual and restructured
loans ........................... $ 242.5 $ 218.6 $ 221.9 $ 225.0 $ 244.0
Other real estate owned ........... 29.4 29.9 30.5 32.0 37.1
-------- -------- -------- -------- --------
Total nonperforming assets ........ $ 271.9 $ 248.5 $ 252.4 $ 257.0 $ 281.1
======== ======== ======== ======== ========
Credit Quality Ratios:
Net charge-offs to average loans .. .48 % .42 % .33 % .32 % .41 %
Loan loss reserve to
loans (period-end) .............. 1.69 1.67 1.74 1.78 1.80
Nonperforming assets to loans and
OREO (period-end) ............... .47 .43 .45 .47 .52
Capital Ratios*:
Tier 1 Capital .................... 7.50 % 7.97 % 8.81 % 8.41 % 8.67 %
Total risk-based capital .......... 12.20 11.82 12.70 12.36 12.75
Leverage .......................... 6.10 6.94 7.49 7.09 7.64
Tangible common equity to tangible
assets .......................... 6.17 6.72 7.46 7.30 7.08
Share Information:
Average basic shares .............. 320,494,527 329,726,921 329,692,338 328,186,746 316,227,200
Average diluted shares ............ 326,110,250 335,631,004 336,348,661 336,382,782 323,006,334
Common shares outstanding at end
of period ....................... 314,420,971 326,327,360 330,336,278 328,627,647 327,513,959
</TABLE>
* First quarter 1999 calculations are based on preliminary data.
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