<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
July 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 July 15, 1999, the Registrant issued a News Release reporting
earnings for the second quarter and first six months of Fiscal Year 1999.
Reference is made to the News Release, dated July 15, 1999, a copy
of which is filed as Exhibit 99.1 to this Current Report on Form 8-K and
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 July 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: July 15, 1999 By /s/ David L. Zoeller
--------------------
David L. Zoeller
Senior Vice President
and General Counsel
<PAGE> 1
Exhibit 99.1
[NATIONAL CITY LETTERHEAD]
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 13% INCREASE IN
-------------------------------------
SECOND QUARTER EARNINGS PER SHARE
---------------------------------
CLEVELAND, Ohio--July 15, 1999--National City Corporation (NYSE: NCC)
today reported second quarter net income of $354.5 million, or $1.12 per diluted
share, and net income of $705.5 million, or $2.20 per diluted share, for the
first six months of 1999.
Giving effect to the two-for-one stock split declared on June 30, 1999,
which will become effective July 26, 1999, second quarter earnings per diluted
share were $.56 in 1999 compared to $.50 in the second quarter of 1998. For the
first half of 1999, post-split earnings per diluted share were $1.10, up from
$.66 in the first half of 1998.
Excluding the nonrecurring items described below, 1999 second quarter
net income was $354.9 million and earnings per diluted share were $1.12, an
increase of 13.1% over the $.99 in 1998. On this basis, returns on average
common equity and average assets were 22.99% and 1.71%, respectively.
Net income, excluding nonrecurring items, for the first half of 1999
was $702.8 million, or $2.19 per diluted share, an increase of 14.7% from $1.91
per diluted share for the first half of
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<PAGE> 2
-2-
1998. On this basis, returns on average common equity and average assets for the
1999 first half were 21.93% and 1.68%, respectively.
Included in the interim results were several non-recurring items which,
while having nominal per share impact in 1999, did affect a number of reported
income and expense line items.
Reported securities gains in the second quarter of 1999 included a
pre-tax gain of $32.1 million from the sale of National City's holdings in
Concord EFS, Inc. (NASDAQ:CEFT). Other noninterest income included a $6.0
million pre-tax positive adjustment relating to the sale of certain business
lines of National City's 88%-owned item processing subsidiary, National
Processing, Inc. (NYSE: NAP).
Noninterest expense for the second quarter of 1999 included $37.8
million in pre-tax charges pursuant to a plan to improve the cost-efficiency of
branch office facilities, along with certain unrelated executive contract
obligations.
Included in other noninterest income for the first quarter of 1999 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 disposition of
certain business lines at National Processing. Coupled with the items previously
cited, these items produced a pre-tax benefit of $37.1 million, and increased
reported first half net income by $2.7 million, or $.01 per diluted share.
The first half 1998 results included a pre-tax merger charge of $274.7
million, or $.59 per diluted share after-tax, incurred in connection with the
mergers with First of America Bank Corporation and Fort Wayne National
Corporation.
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<PAGE> 3
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Chairman and CEO, David A. Daberko noted, "On a fundamental basis, our
core business lines are performing well compared to last year and versus their
business plans. The steady progress achieved in the second quarter reflects our
efforts to more effectively manage our businesses. Overall, noninterest expense
continued to decline as merger savings and other efficiency measures were
realized. Our strategy to improve the mix of the loan portfolio has benefited
the net interest margin, despite higher interest costs associated with share
repurchases. While the decisions to repurchase shares, to improve the mix of the
loan portfolio, and to dispose of certain business lines at National Processing
have lowered revenue growth in the short run, we believe these actions will
enhance shareholder returns over the longer term."
Net interest income for the second quarter of 1999 increased 2.5% to
$758.2 million from $739.9 million for the same period in 1998. The
year-over-year increase represents a higher level of earning assets reduced
somewhat by a lower net interest margin. On a linked-quarter basis, a better
earning asset and deposit mix, partially offset by additional long-term
borrowings to fund the share repurchase program, led to an increased net
interest margin. Despite the improvement in margin, a managed reduction in
lower-yielding assets, principally residential real estate loans and securities,
led to a .9% decline in net interest income for the second quarter of 1999.
Fees and other income of $537.6 million, excluding nonrecurring items,
represented a 3.0% decline from $554.1 million in the first quarter of 1999. The
disposition of the National Processing business lines in the second quarter of
1999 led to this decline in noninterest income.
Noninterest expense, excluding nonrecurring items, declined 4.0% to
$719.5 million in the 1999 second quarter from $749.2 million in the second
quarter of 1998. Compared to the
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<PAGE> 4
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first quarter of 1999, noninterest expense, excluding the nonrecurring items,
was down 2.7%. Merger integration savings and lower expenses from the
disposition of the National Processing business lines in the second quarter of
1999 contributed to the declines in both periods.
Asset quality improved as nonperforming assets fell to $249.5 million
or .44% of total loans and real estate owned at June 30, 1999, from $271.9
million and .47% of total loans and real estate owned as of March 31, 1999. For
the second quarter of 1999, net charge-offs totaled $59.9 million, or .42% of
average loans. Net charge-offs totaled $128.0 million, or .45% of average loans
in the first half of 1999.
Total assets were $84.0 billion as of June 30, 1999 and total
stockholders' equity was $5.9 billion. Equity capital as a percentage of assets
was 6.98% at the end of the second quarter of 1999. In the first half of 1999,
19.6 million common shares were repurchased at a total cost of approximately
$1.4 billion.
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 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.
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<PAGE> 5
<TABLE>
<CAPTION>
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UNAUDITED
NATIONAL CITY CORPORATION
FINANCIAL HIGHLIGHTS
(DOLLARS IN MILLIONS EXCEPT PER SHARE AMOUNTS)
NOTE: FINANCIAL INFORMATION ON PAGES 5 THROUGH 11 IS PRESENTED ON A PRE-SPLIT BASIS.
- -----
1999 1998 2Q99/
---------------------------- ------------------------------------------
SECOND FIRST FOURTH THIRD SECOND 2Q98
QUARTER QUARTER QUARTER QUARTER QUARTER % CHANGE
------------- ------------ ----------- ------------ ------------ --------
<S> <C> <C> <C> <C> <C> <C>
TAX-EQUIVALENT NET
INTEREST INCOME ........................ $ 758.2 $ 764.7 $ 757.9 $ 745.8 $ 739.9 2.5%
PROVISION FOR LOAN
LOSSES ................................. 59.6 68.0 56.9 45.2 43.0 38.4
FEE AND OTHER INCOME -
RECURRING .............................. 537.6 554.1 576.3 555.5 554.1 (3.0)
SECURITIES GAINS BEFORE NON-
RECURRING ITEMS ........................ 25.2 23.7 49.3 64.4 19.7 27.9
NONINTEREST EXPENSE -
RECURRING .............................. 719.5 739.2 766.8 782.4 749.2 (4.0)
NET INCOME BEFORE NON -
RECURRING ITEMS ........................ 354.9 347.9 359.3 344.5 331.2 7.2
NONRECURRING ITEMS:
PRE-TAX ................................ 0.3 36.8 (104.7) -- -- --
AFTER-TAX .............................. (0.4) 3.1 (68.0) -- -- --
NET INCOME ............................... 354.5 351.0 291.3 344.5 331.2 7.0
NET INCOME PER COMMON SHARE:
BASIC ................................ 1.14 1.09 .89 1.05 1.01 12.9
DILUTED .............................. 1.12 1.08 .88 1.03 .99 13.1
DILUTED - ADJUSTED (1) ............... 1.12 1.07 1.06 1.03 .99 13.1
DILUTED - CASH
BASIS (1)(2) ....................... 1.17 1.12 1.13 1.09 1.04 12.5
DIVIDENDS PAID PER
COMMON SHARE ........................... .52 .52 .48 .48 .46 13.0
PERFORMANCE RATIOS (1):
RETURN ON AVERAGE
COMMON EQUITY .......................... 22.99% 20.94% 19.43% 19.00% 19.47%
RETURN ON AVERAGE
ASSETS ................................. 1.71 1.65 1.69 1.69 1.66
NET INTEREST MARGIN ...................... 4.04 4.02 4.00 4.10 4.15
OVERHEAD RATIO ........................... 23.99 24.21 25.15 30.42 26.36
EFFICIENCY RATIO ......................... 55.52 56.05 57.48 60.12 57.90
ASSETS ................................... $ 84,022 $ 84,094 $ 88,246 $ 83,135 $ 81,258 3.4%
LOANS AND MORTGAGE
LOANS HELD FOR SALE .................... 59,656 59,832 61,519 58,684 57,478 3.8
SECURITIES ............................... 14,994 15,264 16,119 15,425 13,898 7.9
DEPOSITS ................................. 52,091 52,051 58,247 54,228 54,832 (5.0)
STOCKHOLDERS' EQUITY ..................... 5,867 6,257 7,013 7,273 7,019 (16.4)
BOOK VALUE PER COMMON
SHARE .................................. 18.88 19.80 21.38 21.91 21.25 (11.2)
MARKET VALUE PER COMMON
SHARE .................................. 65.50 66.38 72.50 65.94 71.00 (7.7)
NONRECURRING ITEMS DETAIL:
GAIN ON SALE OF CEFT STOCK ............... $ 32.1 $ -- $ -- $ -- $ --
GAIN ON SALE OF EPS ...................... -- 95.7 -- -- --
GAIN ON SALE OF SVS ...................... -- 6.1 -- -- --
NPI BUSINESS LINE DIVEST-
ITURES, NET OF MINORITY
INTEREST ............................... 6.0 (65.0) -- -- --
FACILITIES CHARGE AND
EXECUTIVE CONTRACT
OBLIGATIONS ............................ (37.8) -- -- -- --
MERGER CHARGES ........................... -- -- (104.7) -- --
------------ ------------ ----------- ----------- ----------
NONRECURRING PRE-TAX ..................... $ 0.3 $ 36.8 $ (104.7) $ -- $ --
============ ============ =========== =========== ==========
<CAPTION>
SIX MONTHS ENDED
JUNE 30,
-----------------------------------------------------------------
1999 1998 % CHANGE
-------------- ----------- ----------
<S> <C> <C> <C>
TAX-EQUIVALENT NET
INTEREST INCOME ........................ $ 1,522.9 $ 1,448.2 5.2%
PROVISION FOR LOAN
LOSSES ................................. 127.6 99.3 28.5
FEE AND OTHER INCOME -
RECURRING .............................. 1,091.7 1,047.9 4.2
SECURITIES GAINS BEFORE NON-
RECURRING ITEMS ........................ 48.9 20.8 --
NONINTEREST EXPENSE -
RECURRING .............................. 1,458.7 1,448.5 0.7
NET INCOME BEFORE NON -
RECURRING ITEMS ........................ 702.8 628.9 11.8
NONRECURRING ITEMS:
PRE-TAX ................................ 37.1 (274.7) --
AFTER-TAX .............................. 2.7 (193.9) --
NET INCOME ............................... 705.5 435.0 62.2
NET INCOME PER COMMON SHARE:
BASIC ................................ 2.23 1.34 66.4
DILUTED .............................. 2.20 1.32 66.7
DILUTED - ADJUSTED (1) ............... 2.19 1.91 14.7
DILUTED - CASH
BASIS (1)(2) ....................... 2.29 1.99 15.1
DIVIDENDS PAID PER
COMMON SHARE ........................... 1.04 .92 13.0
PERFORMANCE RATIOS (1):
RETURN ON AVERAGE
COMMON EQUITY .......................... 21.93% 19.07%
RETURN ON AVERAGE
ASSETS ................................. 1.68 1.64
NET INTEREST MARGIN ...................... 4.03 4.16
OVERHEAD RATIO ........................... 24.10 27.66
EFFICIENCY RATIO ......................... 55.79 58.03
ASSETS ...................................
LOANS AND MORTGAGE
LOANS HELD FOR SALE ....................
SECURITIES ...............................
DEPOSITS .................................
STOCKHOLDERS' EQUITY .....................
BOOK VALUE PER COMMON
SHARE ..................................
MARKET VALUE PER COMMON
SHARE ..................................
NONRECURRING ITEMS DETAIL:
GAIN ON SALE OF CEFT STOCK ............... $ 32.1 $ -
GAIN ON SALE OF EPS ...................... 95.7 -
GAIN ON SALE OF SVS ...................... 6.1 -
NPI BUSINESS LINE DIVEST-
ITURES, NET OF MINORITY
INTEREST ............................... (59.0) -
FACILITIES CHARGE AND
EXECUTIVE CONTRACT
OBLIGATIONS ............................ (37.8) -
MERGER CHARGES ........................... - (274.7)
------------- ------------
NONRECURRING PRE-TAX ..................... $ 37.1 $ (274.7)
============= ============
<FN>
=======================================
(1) Excluding after-tax effects of nonrecurring items.
(2) Excludes amortization of goodwill and other intangible assets.
</TABLE>
<PAGE> 6
<TABLE>
<CAPTION>
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UNAUDITED
NATIONAL CITY CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
1999 1998
---------------------------- --------------------------------------------
SECOND FIRST FOURTH THIRD SECOND
QUARTER QUARTER QUARTER QUARTER QUARTER
----------- ---------- ----------- ------------- ------------
<S> <C> <C> <C> <C> <C>
INTEREST INCOME:
LOANS ........................................ $1,205,526 $1,212,303 $1,232,070 $1,229,009 $1,210,235
SECURITIES:
TAXABLE ..................................... 208,446 223,913 215,406 207,384 207,228
EXEMPT FROM FEDERAL INCOME
TAXES ..................................... 13,465 10,199 9,524 13,145 14,562
FEDERAL FUNDS SOLD AND SECURITY
RESALE AGREEMENTS .......................... 9,903 11,013 12,852 16,642 8,293
OTHER SHORT-TERM INVESTMENTS ................. 2,925 3,062 2,407 4,302 4,973
---------- ---------- ---------- ---------- ----------
TOTAL INTEREST INCOME ...................... 1,440,265 1,460,490 1,472,259 1,470,482 1,445,291
INTEREST EXPENSE:
DEPOSITS ..................................... 393,145 419,023 451,800 475,951 472,064
FEDERAL FUNDS BORROWED AND
SECURITY REPURCHASE AGREEMENTS ............. 79,352 99,694 102,602 96,416 81,101
BORROWED FUNDS ............................... 36,957 28,484 30,589 38,078 48,564
LONG-TERM DEBT AND CAPITAL
SECURITIES .................................. 181,867 157,154 140,083 123,672 113,439
---------- ---------- ---------- ---------- ----------
TOTAL INTEREST EXPENSE ..................... 691,321 704,355 725,074 734,117 715,168
---------- ---------- ---------- ---------- ----------
NET INTEREST INCOME ........................ 748,944 756,135 747,185 736,365 730,123
PROVISION FOR LOAN LOSSES .................... 59,542 68,034 56,888 45,212 43,033
---------- ---------- ---------- ---------- ----------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES ................. 689,402 688,101 690,297 691,153 687,090
NONINTEREST INCOME:
ITEM PROCESSING REVENUE ...................... 105,089 121,703 130,009 124,268 117,686
SERVICE CHARGES ON DEPOSIT
ACCOUNTS ................................... 104,834 99,863 98,649 98,472 96,104
TRUST AND INVESTMENT MANAGEMENT
FEES ....................................... 80,683 81,847 79,802 74,565 79,729
CARD-RELATED FEES ............................ 49,259 45,310 48,479 56,415 49,383
MORTGAGE BANKING REVENUE ..................... 89,181 92,995 89,412 79,362 97,223
OTHER ........................................ 114,585 149,173 129,915 122,435 114,004
---------- ---------- ---------- ---------- ----------
TOTAL FEES AND OTHER INCOME ................ 543,631 590,891 576,266 555,517 554,129
SECURITIES GAINS ............................. 57,224 23,688 49,242 64,451 19,714
---------- ---------- ---------- ---------- ----------
TOTAL NONINTEREST INCOME ................... 600,855 614,579 625,508 619,968 573,843
NONINTEREST EXPENSE:
SALARIES AND OTHER PERSONNEL ................. 389,585 400,764 405,050 409,279 396,574
EQUIPMENT .................................... 52,955 52,761 58,618 51,054 51,471
NET OCCUPANCY ................................ 49,234 54,127 52,519 51,737 49,671
THIRD PARTY SERVICES ......................... 48,551 45,570 55,233 70,075 51,352
MERGER EXPENSES .............................. -- -- 104,678 -- --
OTHER ........................................ 216,910 185,980 195,436 200,255 200,110
---------- ---------- ---------- ---------- ----------
TOTAL NONINTEREST EXPENSE .................. 757,235 739,202 871,534 782,400 749,178
---------- ---------- ---------- ---------- ----------
INCOME BEFORE INCOME TAXES .................... 533,022 563,478 444,271 528,721 511,755
INCOME TAX EXPENSE ............................ 178,534 212,459 153,012 184,265 180,511
---------- ---------- ---------- ---------- ----------
NET INCOME ................................. $ 354,488 $ 351,019 $ 291,259 $ 344,456 $ 331,244
========== ========== ========== ========== ==========
NET INCOME APPLICABLE TO
COMMON STOCK ............................. $ 354,078 $ 350,604 $ 290,722 $ 343,910 $ 330,145
========== ========== ========== ========== ==========
NET INCOME PER COMMON SHARE:
BASIC ...................................... $ 1.14 $ 1.09 $ .89 $ 1.05 $ 1.01
DILUTED .................................... $ 1.12 $ 1.08 $ .88 $ 1.03 $ .99
<CAPTION>
SIX MONTHS ENDED
JUNE 30,
--------------------------------------
1999 1998
------------ ----------
<S> <C> <C>
INTEREST INCOME:
LOANS ........................................ $ 2,417,829 $2,350,656
SECURITIES:
TAXABLE ..................................... 432,359 413,640
EXEMPT FROM FEDERAL INCOME
TAXES ..................................... 23,664 26,162
FEDERAL FUNDS SOLD AND SECURITY
RESALE AGREEMENTS .......................... 20,916 14,299
OTHER SHORT-TERM INVESTMENTS ................. 5,987 9,179
------------ ----------
TOTAL INTEREST INCOME ...................... 2,900,755 2,813,936
INTEREST EXPENSE:
DEPOSITS ..................................... 812,168 918,525
FEDERAL FUNDS BORROWED AND
SECURITY REPURCHASE AGREEMENTS ............. 179,046 154,864
BORROWED FUNDS ............................... 65,441 99,840
LONG-TERM DEBT AND CAPITAL
SECURITIES .................................. 339,021 212,609
------------ ----------
TOTAL INTEREST EXPENSE ..................... 1,395,676 1,385,838
------------ ----------
NET INTEREST INCOME ........................ 1,505,079 1,428,098
PROVISION FOR LOAN LOSSES .................... 127,576 99,300
------------ ----------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES ................. 1,377,503 1,328,798
NONINTEREST INCOME:
ITEM PROCESSING REVENUE ...................... 226,792 230,226
SERVICE CHARGES ON DEPOSIT
ACCOUNTS ................................... 204,697 187,817
TRUST AND INVESTMENT MANAGEMENT
FEES ....................................... 162,530 156,683
CARD-RELATED FEES ............................ 94,569 96,274
MORTGAGE BANKING REVENUE ..................... 182,176 158,473
OTHER ........................................ 263,758 218,427
------------ ----------
TOTAL FEES AND OTHER INCOME ................ 1,134,522 1,047,900
SECURITIES GAINS ............................. 80,912 20,766
------------ ----------
TOTAL NONINTEREST INCOME ................... 1,215,434 1,068,666
NONINTEREST EXPENSE:
SALARIES AND OTHER PERSONNEL ................. 790,349 780,428
EQUIPMENT .................................... 105,716 103,199
NET OCCUPANCY ................................ 103,361 98,408
THIRD PARTY SERVICES ......................... 94,121 100,954
MERGER EXPENSES .............................. -- 274,698
OTHER ........................................ 402,890 365,492
------------ ----------
TOTAL NONINTEREST EXPENSE .................. 1,496,437 1,723,179
------------ ----------
INCOME BEFORE INCOME TAXES .................... 1,096,500 674,285
INCOME TAX EXPENSE ............................ 390,993 239,319
------------ ----------
NET INCOME ................................. $ 705,507 $ 434,966
============ ==========
NET INCOME APPLICABLE TO
COMMON STOCK ............................. $ 704,682 $ 433,867
============ ==========
NET INCOME PER COMMON SHARE:
BASIC ...................................... $ 2.23 $ 1.34
DILUTED .................................... $ 2.20 $ 1.32
</TABLE>
<PAGE> 7
<TABLE>
<CAPTION>
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UNAUDITED
NATIONAL CITY CORPORATION
CONSOLIDATED PERIOD-END BALANCE SHEETS
(DOLLARS IN THOUSANDS)
1999 1998
-------------------------- ----------------------------------------
SECOND FIRST FOURTH THIRD SECOND
QUARTER QUARTER QUARTER QUARTER QUARTER
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS
LOANS
COMMERCIAL ........................................... $22,153,612 $22,306,928 $22,243,114 $20,745,705 $20,220,235
REAL ESTATE - COMMERCIAL ............................. 6,277,934 6,309,277 6,251,879 6,475,950 6,518,933
REAL ESTATE - RESIDENTIAL ............................ 8,388,380 8,693,757 9,664,115 9,435,870 9,761,171
CONSUMER ............................................. 15,184,825 15,022,782 14,822,759 14,291,552 13,473,157
CREDIT CARD .......................................... 2,050,842 1,846,719 1,852,635 1,797,840 1,830,355
HOME EQUITY .......................................... 3,261,466 3,133,121 3,176,664 3,188,590 3,113,685
----------- ----------- ----------- ----------- -----------
TOTAL LOANS ........................................ 57,317,059 57,312,584 58,011,166 55,935,507 54,917,536
ALLOWANCE FOR LOAN LOSSES .......................... 970,229 970,336 970,243 975,100 976,469
----------- ----------- ----------- ----------- -----------
NET LOANS .......................................... 56,346,830 56,342,248 57,040,923 54,960,407 53,941,067
MORTGAGE LOANS HELD FOR SALE ............................ 2,338,641 2,519,462 3,507,487 2,748,139 2,560,612
SECURITIES AVAILABLE FOR SALE, AT MARKET ................ 14,993,616 15,263,581 16,119,370 15,424,507 13,898,032
FEDERAL FUNDS SOLD AND SECURITY RESALE
AGREEMENTS ............................................ 864,178 978,138 930,492 1,146,383 1,333,374
OTHER SHORT-TERM INVESTMENTS ............................ 196,974 101,696 218,149 100,292 80,220
CASH AND DEMAND BALANCES DUE FROM BANKS ................. 3,807,336 3,443,365 4,783,491 3,406,647 4,111,415
PROPERTIES AND EQUIPMENT ................................ 1,073,051 1,129,305 1,150,210 1,134,480 1,081,876
ACCRUED INCOME AND OTHER ASSETS ......................... 4,401,847 4,316,701 4,495,510 4,213,824 4,251,272
----------- ----------- ----------- ----------- -----------
TOTAL ASSETS ...................................... $84,022,473 $84,094,496 $88,245,632 $83,134,679 $81,257,868
=========== =========== =========== =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
NONINTEREST BEARING DEPOSITS ............................ $11,624,345 $11,200,312 $10,911,926 $10,158,773 $10,750,524
NOW AND MONEY MARKET ACCOUNTS ........................... 16,845,872 16,800,510 18,610,832 17,735,380 17,742,088
SAVINGS ACCOUNTS ........................................ 3,870,281 3,957,576 4,021,113 4,051,228 4,263,384
TIME DEPOSITS OF INDIVIDUALS ............................ 16,321,310 16,821,451 17,450,904 18,013,811 18,417,699
OTHER TIME DEPOSITS ..................................... 1,109,959 1,340,458 2,280,973 2,475,572 2,484,797
DEPOSITS IN OVERSEAS OFFICES ............................ 2,319,594 1,930,292 4,971,161 1,793,442 1,173,497
----------- ----------- ----------- ----------- -----------
TOTAL DEPOSITS ...................................... 52,091,361 52,050,599 58,246,909 54,228,206 54,831,989
FEDERAL FUNDS BORROWED AND SECURITY
REPURCHASE AGREEMENTS ............................... 6,979,837 8,753,759 9,427,309 8,662,013 6,069,853
BORROWED FUNDS .......................................... 4,495,831 2,840,983 2,117,916 3,122,562 4,330,313
LONG-TERM DEBT .......................................... 13,137,293 11,999,109 9,009,448 7,788,754 6,916,808
CORPORATION-OBLIGATED MANDATORILY REDEEMABLE
CAPITAL SECURITIES OF SUBSIDIARY TRUSTS HOLDING
SOLELY DEBENTURES OF THE CORPORATION ................. 180,000 679,896 679,894 679,894 679,894
ACCRUED EXPENSES AND OTHER LIABILITIES .................. 1,270,942 1,513,241 1,751,248 1,379,855 1,410,015
----------- ----------- ----------- ----------- -----------
TOTAL LIABILITIES ................................... 78,155,264 77,837,587 81,232,724 75,861,284 74,238,872
STOCKHOLDERS' EQUITY:
PREFERRED ............................................. 30,513 30,513 36,098 36,556 36,592
COMMON ................................................ 5,836,696 6,226,396 6,976,810 7,236,839 6,982,404
----------- ----------- ----------- ----------- -----------
TOTAL STOCKHOLDERS' EQUITY .......................... 5,867,209 6,256,909 7,012,908 7,273,395 7,018,996
----------- ----------- ----------- ----------- -----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY .............................. $84,022,473 $84,094,496 $88,245,632 $83,134,679 $81,257,868
=========== =========== =========== =========== ===========
</TABLE>
<PAGE> 8
<TABLE>
<CAPTION>
-8-
UNAUDITED
NATIONAL CITY CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEETS
(DOLLARS IN MILLIONS)
SIX MONTHS ENDED
1999 1998 JUNE 30,
--------------------- -------------------------------- ---------------------
SECOND FIRST FOURTH THIRD SECOND
QUARTER QUARTER QUARTER QUARTER QUARTER 1999 1998
-------- -------- -------- -------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
EARNING ASSETS:
LOANS:
COMMERCIAL .................................. $ 28,503 $ 28,459 $ 27,923 $ 26,672 $ 26,735 $ 28,480 $ 25,743
REAL ESTATE - RESIDENTIAL ................... 8,483 8,926 9,327 9,505 9,844 8,712 9,864
CONSUMER .................................... 15,130 14,956 14,491 13,964 13,107 15,040 12,793
CREDIT CARD ................................. 1,953 1,829 1,818 1,818 1,861 1,891 1,902
HOME EQUITY ................................. 3,188 3,149 3,193 3,144 3,074 3,172 3,034
-------- -------- -------- -------- -------- -------- --------
TOTAL LOANS .............................. 57,257 57,319 56,752 55,103 54,621 57,295 53,336
MORTGAGE LOANS HELD FOR SALE .................. 2,344 2,976 2,991 2,525 2,088 2,650 1,646
SECURITIES AVAILABLE FOR SALE ................. 14,638 15,126 14,500 13,614 13,874 14,881 13,757
FEDERAL FUNDS SOLD AND SECURITY
RESALE AGREEMENTS ........................... 850 945 1,157 1,177 713 898 577
OTHER SHORT-TERM INVESTMENTS .................. 149 148 113 110 118 148 117
-------- -------- -------- -------- -------- -------- --------
TOTAL EARNING ASSETS ....................... 75,238 76,514 75,513 72,529 71,414 75,872 69,433
ALLOWANCE FOR LOAN LOSSES ...................... (989) (985) (988) (994) (995) (987) (975)
MARKET VALUE APPRECIATION OF
SECURITIES AVAILABLE FOR SALE ................ 268 377 509 511 564 322 550
CASH AND DEMAND BALANCES DUE
FROM BANKS .................................. 3,506 4,068 3,826 3,685 3,616 3,785 3,492
PROPERTIES AND EQUIPMENT ....................... 1,124 1,145 1,148 1,124 1,055 1,135 1,045
ACCRUED INCOME AND OTHER ASSETS ................ 4,222 4,401 4,200 4,207 4,273 4,312 3,877
-------- -------- -------- -------- -------- -------- --------
TOTAL ASSETS ............................. $ 83,369 $ 85,520 $ 84,208 $ 81,062 $ 79,927 $ 84,439 $ 77,422
======== ======== ======== ======== ======== ======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
NOW AND MONEY MARKET ACCOUNTS ................. $ 16,997 $ 16,899 $ 18,181 $ 17,890 $ 17,628 $ 16,949 $ 16,897
SAVINGS ACCOUNTS .............................. 3,922 3,955 4,033 4,157 4,282 3,938 4,226
TIME DEPOSITS OF INDIVIDUALS .................. 16,541 17,135 17,795 18,222 18,640 16,836 18,523
OTHER TIME DEPOSITS ........................... 1,199 1,757 2,472 2,505 2,536 1,477 2,240
DEPOSITS IN OVERSEAS OFFICES .................. 2,342 3,030 2,050 1,785 1,420 2,684 1,496
-------- -------- -------- -------- -------- -------- --------
TOTAL INTEREST BEARING DEPOSITS ............ 41,001 42,776 44,531 44,559 44,506 41,884 43,382
-------- -------- -------- -------- -------- -------- --------
FEDERAL FUNDS BORROWED AND SECURITY
REPURCHASE AGREEMENTS ...................... 7,377 9,004 9,195 7,431 6,433 8,187 6,164
BORROWED FUNDS ................................ 2,977 2,838 2,515 2,644 3,395 2,908 3,447
LONG-TERM DEBT AND CAPITAL
SECURITIES .................................. 13,305 11,301 9,292 7,962 7,235 12,309 6,753
-------- -------- -------- -------- -------- -------- --------
TOTAL INTEREST BEARING LIABILITIES ......... 64,660 65,919 65,533 62,596 61,569 65,288 59,746
NONINTEREST BEARING DEPOSITS .................. 11,542 11,681 10,168 10,051 10,053 11,610 9,724
ACCRUED EXPENSES AND OTHER
LIABILITIES ................................. 951 1,159 1,144 1,195 1,466 1,054 1,294
-------- -------- -------- -------- -------- -------- --------
TOTAL LIABILITIES ........................ 77,153 78,759 76,845 73,842 73,088 77,952 70,764
STOCKHOLDERS' EQUITY:
PREFERRED .................................... 31 33 36 37 37 31 19
COMMON ....................................... 6,185 6,728 7,327 7,183 6,802 6,456 6,639
-------- -------- -------- -------- -------- -------- --------
TOTAL STOCKHOLDERS' EQUITY ............... 6,216 6,761 7,363 7,220 6,839 6,487 6,658
-------- -------- -------- -------- -------- -------- --------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY ................................ $ 83,369 $ 85,520 $ 84,208 $ 81,062 $ 79,927 $ 84,439 $ 77,422
======== ======== ======== ======== ======== ======== ========
</TABLE>
<PAGE> 9
<TABLE>
<CAPTION>
-9-
UNAUDITED
NATIONAL CITY CORPORATION
AVERAGE BALANCES AND RATES ON A TAX EQUIVALENT BASIS
FOR THE THREE MONTHS ENDED JUNE 30, 1999 AND 1998
(DOLLARS IN MILLIONS)
1999 1998
-------------------------------------- -----------------------------------
TAX TAX
AVERAGE EQUIVALENT AVERAGE AVERAGE EQUIVALENT AVERAGE
ASSETS BALANCE INTEREST RATE BALANCE INTEREST RATE
-------- ---------- ---------- ------- --------- --------
EARNING ASSETS:
LOANS:
<S> <C> <C> <C> <C> <C> <C>
COMMERCIAL ...................................... $ 28,503 $ 557.2 7.84% $26,735 $ 564.8 8.47%
REAL ESTATE - RESIDENTIAL * .................... 10,827 202.5 7.48 11,932 225.9 7.57
CONSUMER ........................................ 15,130 317.5 8.42 13,107 289.4 8.86
CREDIT CARD ..................................... 1,953 65.5 13.45 1,861 64.7 13.92
HOME EQUITY ..................................... 3,188 66.2 8.32 3,074 69.2 9.03
-------- ---------- ---------- ------- --------- --------
TOTAL LOANS .................................. 59,601 1,208.9 8.13 56,709 1,214.0 8.58
SECURITIES:
TAXABLE ......................................... 13,761 208.4 6.06 12,846 207.8 6.47
TAX-EXEMPT ...................................... 877 19.3 8.80 1,028 19.9 7.78
-------- ---------- ---------- ------- --------- --------
TOTAL SECURITIES .............................. 14,638 227.7 6.22 13,874 227.7 6.57
FEDERAL FUNDS SOLD ................................ 78 0.9 4.84 169 1.7 4.07
SECURITY RESALE AGREEMENTS ........................ 772 9.0 4.66 544 6.6 4.85
OTHER SHORT-TERM INVESTMENTS ...................... 149 3.0 7.87 118 5.1 16.79
-------- ---------- ---------- ------- --------- --------
TOTAL EARNING ASSETS ........................... 75,238 1,449.5 7.72 71,414 1,455.1 8.16
ALLOWANCE FOR LOAN LOSSES .......................... (989) (995)
MARKET VALUE APPRECIATION OF
SECURITIES AVAILABLE FOR SALE .................... 268 564
NONINTEREST EARNING ASSETS ......................... 8,852 8,944
-------- ---------
TOTAL ASSETS ................................. $ 83,369 $ 79,927
======== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
NOW AND MONEY MARKET ACCOUNTS ..................... $ 16,997 $ 126.7 2.99% $ 17,628 $ 139.5 3.18%
SAVINGS ACCOUNTS .................................. 3,922 16.6 1.70 4,282 21.8 2.04
TIME DEPOSITS OF INDIVIDUALS ...................... 16,541 209.3 5.08 18,640 257.8 5.55
OTHER TIME DEPOSITS ............................... 1,199 12.8 4.28 2,536 34.1 5.38
DEPOSITS IN OVERSEAS OFFICES ...................... 2,342 27.7 4.74 1,420 18.9 5.34
FEDERAL FUNDS BORROWED ............................ 2,467 29.6 4.82 2,676 36.8 5.51
SECURITY REPURCHASE AGREEMENTS .................... 4,910 49.8 4.06 3,757 44.3 4.74
BORROWED FUNDS .................................... 2,977 36.9 4.98 3,395 48.6 5.74
LONG-TERM DEBT AND CAPITAL SECURITIES ............. 13,305 181.9 5.48 7,235 113.4 6.29
-------- ---------- ---------- --------- --------- --------
TOTAL INTEREST BEARING LIABILITIES .............. 64,660 691.3 4.29 61,569 715.2 4.66
---------- ---------- --------- --------
NONINTEREST BEARING LIABILITIES .................... 12,493 11,519
--------- ---------
TOTAL LIABILITIES ............................ 77,153 73,088
STOCKHOLDERS' EQUITY ............................... 6,216 6,839
TOTAL LIABILITIES AND STOCKHOLDERS'
--------- ---------
EQUITY .................................... $ 83,369 $ 79,927
========= =========
NET INTEREST INCOME AND INTEREST
SPREAD ........................................... $ 758.2 3.43% $ 739.9 3.50%
========== ========== ========= ========
NET INTEREST MARGIN ................................ 4.04% 4.15%
========== ========
<FN>
* INCLUDES MORTGAGE LOANS HELD FOR SALE.
</TABLE>
<PAGE> 10
<TABLE>
<CAPTION>
-10-
UNAUDITED
NATIONAL CITY CORPORATION
AVERAGE BALANCES AND RATES ON A TAX EQUIVALENT BASIS
FOR THE SIX MONTHS ENDED JUNE 30, 1999 AND 1998
(DOLLARS IN MILLIONS)
1999 1998
------------------------------------- ------------------------------------
TAX TAX
AVERAGE EQUIVALENT AVERAGE AVERAGE EQUIVALENT AVERAGE
BALANCE INTEREST RATE BALANCE INTEREST RATE
-------- ---------- ---------- ------- --------- --------
ASSETS
EARNING ASSETS:
LOANS:
<S> <C> <C> <C> <C> <C> <C>
COMMERCIAL ...................................... $ 28,480 $ 1,110.7 7.86% $25,743 $ 1,090.0 8.54%
REAL ESTATE - RESIDENTIAL * .................... 11,362 417.9 7.36 11,510 438.5 7.62
CONSUMER ........................................ 15,040 630.9 8.46 12,793 561.0 8.84
CREDIT CARD ..................................... 1,891 125.1 13.34 1,902 132.0 14.00
HOME EQUITY ..................................... 3,172 138.1 8.76 3,034 136.6 9.08
-------- ---------- ---------- ------- --------- --------
TOTAL LOANS .................................. 59,945 2,422.7 8.14 54,982 2,358.1 8.63
SECURITIES:
TAXABLE ......................................... 13,993 432.3 6.18 12,827 415.2 6.48
TAX-EXEMPT ...................................... 888 36.6 8.24 930 37.2 8.01
-------- ---------- ---------- ------- --------- --------
TOTAL SECURITIES .............................. 14,881 468.9 6.22 13,757 452.4 6.59
FEDERAL FUNDS SOLD ................................ 61 1.5 4.82 115 2.5 4.38
SECURITY RESALE AGREEMENTS ........................ 837 19.5 4.69 462 11.8 5.15
OTHER SHORT-TERM INVESTMENTS ...................... 148 6.0 8.12 117 9.2 15.86
-------- ---------- ---------- ------- --------- --------
TOTAL EARNING ASSETS ........................... 75,872 2,918.6 7.74 69,433 2,834.0 8.19
ALLOWANCE FOR LOAN LOSSES .......................... (987) (975)
MARKET VALUE APPRECIATION OF
SECURITIES AVAILABLE FOR SALE .................... 322 550
NONINTEREST EARNING ASSETS ......................... 9,232 8,414
--------- ----------
TOTAL ASSETS ................................. $ 84,439 $ 77,422
========= ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
NOW AND MONEY MARKET ACCOUNTS ..................... $ 16,949 $ 253.2 3.01% $16,897 $ 264.9 3.16%
SAVINGS ACCOUNTS .................................. 3,938 33.5 1.71 4,226 43.5 2.08
TIME DEPOSITS OF INDIVIDUALS ...................... 16,836 428.7 5.13 18,523 510.2 5.55
OTHER TIME DEPOSITS ............................... 1,477 34.2 4.67 2,240 60.0 5.41
DEPOSITS IN OVERSEAS OFFICES ...................... 2,684 62.6 4.70 1,496 39.9 5.38
FEDERAL FUNDS BORROWED ............................ 3,215 77.5 4.86 2,674 73.2 5.52
SECURITY REPURCHASE AGREEMENTS .................... 4,972 101.6 4.12 3,490 81.7 4.72
BORROWED FUNDS .................................... 2,908 65.4 4.54 3,447 99.8 5.84
LONG-TERM DEBT AND CAPITAL SECURITIES ............. 12,309 339.0 5.55 6,753 212.6 6.35
-------- ---------- ---------- ------- --------- --------
TOTAL INTEREST BEARING LIABILITIES .............. 65,288 1,395.7 4.31 59,746 1,385.8 4.68
---------- ---------- --------- --------
NONINTEREST BEARING LIABILITIES .................... 12,664 11,018
------- ----------
TOTAL LIABILITIES ............................ 77,952 70,764
STOCKHOLDERS' EQUITY ............................... 6,487 6,658
TOTAL LIABILITIES AND STOCKHOLDERS'
--------- ----------
EQUITY .................................... $ 84,439 $ 77,422
========= ==========
NET INTEREST INCOME AND INTEREST
SPREAD ........................................... $ 1,522.9 3.43% $ 1,448.2 3.51%
========== ========== ========= ========
NET INTEREST MARGIN ................................ 4.03% 4.16%
========== ========
* INCLUDES MORTGAGE LOANS HELD FOR SALE.
</TABLE>
<PAGE> 11
<TABLE>
<CAPTION>
-11-
UNAUDITED
NATIONAL CITY CORPORATION
SELECTED FINANCIAL INFORMATION
1999 1998
---------------------------- ------------------------------------------------
SECOND FIRST FOURTH THIRD SECOND
(DOLLARS IN THOUSANDS) QUARTER QUARTER QUARTER QUARTER QUARTER
------------ ------------ ------------- ------------- ------------
<S> <C> <C> <C> <C> <C>
ALLOWANCE FOR LOAN LOSSES:
BALANCE AT BEGINNING
OF PERIOD ................ $ 970,336 $ 970,243 $ 975,100 $ 976,469 $ 976,464
PROVISION .................. 59,542 68,034 56,888 45,212 43,033
ALLOWANCES RELATED TO LOANS
ACQUIRED (SOLD) .......... 268 93 (1,790) (1,388) --
CHARGE-OFFS:
COMMERCIAL ............... 31,275 15,881 17,257 13,159 10,504
REAL ESTATE - RESIDENTIAL 444 1,702 3,501 2,058 1,504
CONSUMER ................. 40,019 55,671 40,435 37,732 34,324
CREDIT CARD .............. 25,185 27,106 23,843 21,434 24,694
HOME EQUITY .............. 2,032 2,009 1,716 2,563 2,233
------------ ------------ ------------- ------------- ------------
TOTAL CHARGE-OFFS ...... 98,955 102,369 86,752 76,946 73,259
------------ ------------ ------------- ------------- ------------
RECOVERIES:
COMMERCIAL ............... 8,799 6,423 6,334 10,784 7,074
REAL ESTATE - RESIDENTIAL 805 143 343 114 240
CONSUMER ................. 22,910 21,437 14,888 14,863 17,187
CREDIT CARD .............. 5,468 5,326 4,406 4,765 5,066
HOME EQUITY .............. 1,056 1,006 826 1,227 664
------------ ------------ ------------- ------------- ------------
TOTAL RECOVERIES ....... 39,038 34,335 26,797 31,753 30,231
------------ ------------ ------------- ------------- ------------
NET CHARGE-OFFS ............ 59,917 68,034 59,955 45,193 43,028
------------ ------------ ------------- ------------- ------------
BALANCE AT END OF PERIOD ... $ 970,229 $ 970,336 $ 970,243 $ 975,100 $ 976,469
============ ============ ============= ============= ============
(DOLLARS IN MILLIONS)
NONPERFORMING ASSETS:
NONACCRUAL AND
RESTRUCTURED LOANS ....... $ 222.8 $ 242.5 $ 218.6 $ 221.9 $ 225.0
OTHER REAL ESTATE OWNED .... 26.7 29.4 29.9 30.5 32.0
------------ ------------ ------------ -------------- ------------
TOTAL NONPERFORMING
ASSETS ................... $ 249.5 $ 271.9 $ 248.5 $ 252.4 $ 257.0
============ ============ ============ ============== ============
CREDIT QUALITY RATIOS:
NET CHARGE-OFFS TO
AVERAGE LOANS (ANNUALIZED) .42% .48% .42% .33% .32%
LOAN LOSS RESERVE TO
LOANS (PERIOD-END) ....... 1.69 1.69 1.67 1.74 1.78
NONPERFORMING ASSETS TO
LOANS AND OREO
(PERIOD-END) ............. .44 .47 .43 .45 .47
CAPITAL RATIOS*:
TIER 1 CAPITAL ............. 7.19% 7.34% 7.95% 8.81% 8.41%
TOTAL RISK-BASED CAPITAL ... 12.67 11.96 11.79 12.70 12.36
LEVERAGE ................... 6.12 6.13 6.94 7.49 7.09
TANGIBLE COMMON EQUITY
TO TANGIBLE ASSETS ....... 5.78 6.17 6.72 7.46 7.30
SHARE INFORMATION:
AVERAGE BASIC SHARES ....... 311,558,373 320,494,527 329,726,921 329,692,338 328,186,746
AVERAGE DILUTED SHARES ..... 316,640,210 326,110,250 335,631,004 336,348,661 336,382,782
COMMON SHARES
OUTSTANDING AT END OF
PERIOD ................... 309,065,693 314,420,971 326,327,360 330,336,278 328,627,647
<CAPTION>
SIX MONTHS ENDED
JUNE 30,
----------------------------
(DOLLARS IN THOUSANDS) 1999 1998
------------ ------------
<S> <C> <C>
ALLOWANCE FOR LOAN LOSSES:
BALANCE AT BEGINNING
OF PERIOD ................ $ 970,243 $ 941,874
PROVISION .................. 127,576 99,300
ALLOWANCES RELATED TO LOANS
ACQUIRED (SOLD) .......... 361 30,679
CHARGE-OFFS:
COMMERCIAL ............... 47,156 22,581
REAL ESTATE - RESIDENTIAL 2,146 3,427
CONSUMER ................. 95,690 76,759
CREDIT CARD .............. 52,291 50,404
HOME EQUITY .............. 4,041 4,516
------------ ------------
TOTAL CHARGE-OFFS ...... 201,324 157,687
------------ ------------
RECOVERIES:
COMMERCIAL ............... 15,222 15,452
REAL ESTATE - RESIDENTIAL 948 249
CONSUMER ................. 44,347 34,579
CREDIT CARD .............. 10,794 10,654
HOME EQUITY .............. 2,062 1,369
------------ ------------
TOTAL RECOVERIES ....... 73,373 62,303
------------ ------------
NET CHARGE-OFFS ............ 127,951 95,384
------------ ------------
BALANCE AT END OF PERIOD ... $ 970,229 $ 976,469
============ ============
(DOLLARS IN MILLIONS)
NONPERFORMING ASSETS:
NONACCRUAL AND
RESTRUCTURED LOANS .......
OTHER REAL ESTATE OWNED ....
TOTAL NONPERFORMING
ASSETS ...................
CREDIT QUALITY RATIOS:
NET CHARGE-OFFS TO
AVERAGE LOANS (ANNUALIZED) .45% .36%
LOAN LOSS RESERVE TO
LOANS (PERIOD-END) .......
NONPERFORMING ASSETS TO
LOANS AND OREO
(PERIOD-END) .............
CAPITAL RATIOS*:
TIER 1 CAPITAL .............
TOTAL RISK-BASED CAPITAL ...
LEVERAGE ...................
TANGIBLE COMMON EQUITY
TO TANGIBLE ASSETS .......
SHARE INFORMATION:
AVERAGE BASIC SHARES ....... 316,001,765 322,240,010
AVERAGE DILUTED SHARES ..... 321,318,666 329,543,875
COMMON SHARES
OUTSTANDING AT END OF
PERIOD ...................
* SECOND QUARTER 1999 CALCULATIONS ARE BASED ON PRELIMINARY DATA.
</TABLE>
