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NATIONAL CITY CORP
10-Q, 2000-08-04
NATIONAL COMMERCIAL BANKS

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Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

QUARTERLY REPORT UNDER SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2000

Commission file number 1-10074

NATIONAL CITY CORPORATION
(Exact name of registrant as specified in its charter)

DELAWARE

(State or other jurisdiction of
incorporation or organization)
34-1111088

(I.R.S. Employer
Identification No.)

1900 EAST NINTH STREET
CLEVELAND, OHIO 44114
(Address of principal executive office)

216-575-2000
(Registrant’s telephone number, including area code)

      Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (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

      Indicate the number of shares outstanding of each of the issuer’s classes of Common Stock as of the latest practicable date.

Common stock — $4.00 Par Value
Outstanding as of June 30, 2000 — 607,433,924

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FINANCIAL HIGHLIGHTS
CONSOLIDATED STATEMENTS OF INCOME
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED STATEMENTS OF CASH FLOWS
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MANAGEMENT’S DISCUSSION AND ANALYSIS
CONSOLIDATED AVERAGE BALANCE SHEETS
DAILY AVERAGE BALANCES/NET INTEREST INCOME/RATES
CORPORATE INVESTOR INFORMATION
SIGNATURE
Exhibit 3.2
Exhibit 12.1
Exhibit 27.1

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[NATIONAL CITY CORPORATION LOGO]

Quarter Ended June 30, 2000

Financial Report

and Form 10-Q

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Table of Contents

TABLE OF CONTENTS

Part I — Financial Information
Financial Highlights				3
Item 1. Financial Statements:
	Consolidated Statements of Income			4
	Consolidated Balance Sheets			5
	Consolidated Statements of Cash Flows			6
	Consolidated Statements of Changes in Stockholders’ Equity			7
	Notes to Consolidated Financial Statements			7
Item 2. Management’s Discussion and Analysis				16
Consolidated Average Balance Sheets				23
Daily Average Balances/Net Interest Income/Rates				24
Item 3. Quantitative and Qualitative Disclosures About Market Risk
	Market risk disclosures are presented in the Net Interest Income section of Management’s Discussion and Analysis.
Part II — Other Information
Item 1. Legal Proceedings
	The information contained in Note 12 to the Consolidated Financial Statements on page 12 of this Quarterly Report is incorporated herein by reference.
Item 2. Changes in Securities and Use of Proceeds (None)
Item 3. Defaults Upon Senior Securities (None)
Item 4. Submission of Matters to a Vote of Security Holders

     On April 10, 2000, at the Annual Meeting of Stockholders of the Registrant, stockholders took the following actions:

     1.  Elected as directors all nominees designated in the proxy statement of March 6, 2000, as follows:

		Number of Votes
		For				Withheld
J. E. Barfield			511,781,959				11,800,260
E. B. Brandon			511,360,879				12,221,340
J. G. Breen			511,521,137				12,061,082
J. S. Broadhurst			511,906,326				11,675,893
J. W. Brown			512,289,886				11,292,333
D. E. Collins			511,969,167				11,613,052
S. A. Crayton			511,142,935				12,439,284
D. A. Daberko			510,116,893				13,465,326
D. E. Evans			511,668,271				11,913,948
B. P. Healy			512,110,468				11,471,751
D. A. Johnson			512,163,482				11,418,737
P. A. Ormond			511,844,455				11,737,764
R. A. Paul			512,294,187				11,288,032
W. F. Roemer			511,643,566				11,938,653
M. A. Schuler			512,047,309				11,534,910
J. F. Tatar			511,938,395				11,643,824
M. Weiss			493,437,179				30,145,040
2. Approved the National City Corporation Amended and Restated Long-Term Incentive Compensation Plan for Senior Officers: 471,276,912 votes cast for, 39,957,492 votes cast against and 12,347,809 votes withheld.
3. Approved the selection of Ernst & Young LLP as independent auditors for National City for 2000: 515,717,851 votes cast for, 4,457,829 votes cast against and 3,392,534 votes withheld.

Item 5. Other Information (None)
Item 6. Exhibits and Reports on Form 8-K
	Exhibits: The index of exhibits has been filed as separate pages of the June 30, 2000 Financial Report and Form 10-Q and is available on request from the Secretary of the Corporation at the principal executive offices.
	Reports on Form 8-K:
	April 14, 2000 — National City Corporation reported earnings for the first quarter of fiscal year 2000.
	May 11, 2000 — National City Corporation reported it had entered into an agreement with a third party that provides the Corporation with an option to purchase up to $300 million of National City common stock and in accordance with this agreement the Corporation had entered into forward transactions for its common stock beginning in April.
Signature				27

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FINANCIAL HIGHLIGHTS

				Three Months Ended												Six Months Ended
				June 30												June 30
												Percent												Percent
				2000				1999				Change				2000				1999				Change
EARNINGS (In Thousands)
	Net interest income — tax-equivalent				$748,972				$758,186				(1	)%			$1,489,867				$1,522,885				(2	)%
	Provision for loan losses				68,691				59,542				15				135,017				127,576				6
	Fees and other income(a)				600,112				537,593				12				1,157,478				1,091,686				6
	Securities gains(a)				15,599				25,171				(38	)			37,132				48,859				(24	)
	Noninterest expense(a)				785,070				719,469				9				1,544,163				1,458,671				6
	Net income before nonrecurring items(a)				332,093				354,942				(6	)			653,436				702,813				(7	)
	Net income				342,387				354,488				(3	)			663,730				705,507				(6	)
PERFORMANCE RATIOS
	Return on average common equity — adjusted(a)				22.43	%			22.99	%							22.44	%			21.93	%
	Return on average common equity				23.13				22.96								22.80				22.01
	Return on average assets — adjusted(a)				1.54				1.71								1.52				1.68
	Return on average assets				1.59				1.71								1.55				1.68
	Efficiency ratio(a)				58.19				55.52								58.33				55.79
	Net interest margin				3.80				4.04								3.79				4.03
PER COMMON SHARE
	Net income:
		Basic			$.56				$.56				-				$1.09				$1.11				(2	)
		Diluted			.56				.56				-				1.09				1.10				(1	)
		Diluted-adjusted(a)			.54				.56				(4	)			1.07				1.09				(2	)
	Dividends paid				.28	5			.26				10				.57				.52				10
	Book value																10.05				9.44				6
	Market value (close)																17.06				32.75				(48	)
	Average shares — diluted				611,070,243				633,280,420				(4	)			610,882,275				642,637,332				(5	)
AT PERIOD END ($ in Millions)
	Assets																$84,601				$84,022				1
	Loans																61,570				57,317				7
	Securities (at fair value)																10,719				14,994				(29	)
	Earning assets																76,524				75,679				1
	Deposits																49,988				52,091				(4	)
	Stockholders’ equity																6,133				5,867				5
	Equity to assets ratio																7.25	%			6.98	%
	Common shares outstanding																607,433,924				618,131,386				(2	)
	Full-time equivalent employees																37,704				37,804				—
ASSET QUALITY
	Net charge-offs to average loans (annualized)				.44	%			.42	%							.44	%			.45	%
	Allowance for loan losses as a percentage of period-end loans																1.58				1.69
	Nonperforming assets to loans and OREO																.55				.44

(a)	Excludes nonrecurring items. See further discussion in Note 3 to the Consolidated Financial Statements.

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FINANCIAL STATEMENTS

					Three Months Ended								Six Months Ended
					June 30								June 30
(Dollars In Thousands, Except Per Share Amounts)					2000				1999				2000				1999
Interest Income
	Loans				$	1,433,996			$	1,205,526			$	2,776,262			$	2,417,829
	Securities:
		Taxable				176,765				195,875				379,020				409,173
		Exempt from Federal income taxes				10,914				13,465				22,085				23,664
		Dividends				13,989				12,571				27,452				23,186
	Federal funds sold and security resale agreements					6,802				9,903				13,760				20,916
	Other short-term investments					4,008				2,925				7,914				5,987
			Total interest income			1,646,474				1,440,265				3,226,493				2,900,755
Interest Expense
	Deposits					466,241				393,145				910,180				812,168
	Federal funds borrowed and security repurchase agreements					85,727				79,352				188,295				179,046
	Borrowed funds					77,782				36,957				121,063				65,441
	Long-term debt and capital securities					276,069				181,867				533,844				339,021
			Total interest expense			905,819				691,321				1,753,382				1,395,676
Net Interest Income						740,655				748,944				1,473,111				1,505,079
Provision for Loan Losses						68,691				59,542				135,017				127,576
			Net interest income after provision for loan losses			671,964				689,402				1,338,094				1,377,503
Noninterest Income
	Item processing revenue					100,575				105,089				194,944				226,792
	Service charges on deposits					108,073				104,834				214,386				204,697
	Mortgage banking revenue					147,610				89,181				258,904				182,176
	Trust and investment management fees					90,054				80,683				173,678				162,530
	Card-related fees					45,312				49,259				88,958				94,569
	Other					182,704				114,585				300,824				263,758
			Total fees and other income			674,328				543,631				1,231,694				1,134,522
	Securities gains (losses)					(42,780	)			57,224				(21,247	)			80,912
			Total noninterest income			631,548				600,855				1,210,447				1,215,434
Noninterest Expense
	Salaries, benefits and other personnel					401,309				389,585				808,180				790,349
	Equipment					57,759				52,955				115,441				105,716
	Net occupancy					51,816				49,234				104,484				103,361
	Third-party services					48,546				48,551				93,694				94,121
	Other					225,640				216,910				422,364				402,890
			Total noninterest expense			785,070				757,235				1,544,163				1,496,437
Income before income tax expense						518,442				533,022				1,004,378				1,096,500
Income tax expense						176,055				178,534				340,648				390,993
Net Income					$	342,387			$	354,488			$	663,730			$	705,507
Net Income Per Common Share
	Basic					$.56				$.56				$1.09				$1.11
	Diluted					.56				.56				1.09				1.10
Average Common Shares Outstanding
	Basic					606,927,559				623,116,746				606,346,848				632,003,530
	Diluted					611,070,243				633,280,420				610,882,275				642,637,332

See notes to consolidated financial statements.

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CONSOLIDATED BALANCE SHEETS

						June 30				December 31				June 30
(In Thousands)						2000				1999				1999
Assets
	Loans:
		Commercial				$	24,935,236			$	23,402,556			$	22,153,612
		Real estate — commercial					6,265,055				6,012,016				6,277,934
		Real estate — residential					9,419,808				8,777,422				8,388,380
		Consumer					14,146,292				15,986,133				15,184,825
		Credit card					2,601,931				2,339,658				2,050,842
		Home equity					4,201,854				3,686,119				3,261,466
			Total loans				61,570,176				60,203,904				57,317,059
			Allowance for loan losses				(970,362	)			(970,463	)			(970,229	)
				Net loans			60,599,814				59,233,441				56,346,830
	Mortgage loans held for sale						3,198,328				2,731,166				2,338,641
	Securities available for sale, at fair value						10,719,285				14,904,343				14,993,616
	Federal funds sold and security resale agreements						493,130				556,351				864,178
	Other short-term investments						145,623				231,099				196,974
	Cash and demand balances due from banks						3,262,268				3,480,756				3,807,336
	Properties and equipment						1,098,053				1,127,980				1,103,912
	Accrued income and other assets						5,084,132				4,856,363				4,370,986
			Total Assets			$	84,600,633			$	87,121,499			$	84,022,473
Liabilities and Stockholders’ Equity
Liabilities:
	Noninterest bearing deposits					$	11,384,267			$	11,182,681			$	11,624,345
	NOW and money market accounts						16,291,791				16,561,494				16,845,872
	Savings accounts						3,230,386				3,470,700				3,870,281
	Time deposits of individuals						15,583,974				14,700,944				14,609,034
	Other time deposits						2,874,460				2,897,166				2,822,235
	Deposits in overseas offices						623,331				1,253,325				2,319,594
			Total deposits				49,988,209				50,066,310				52,091,361
	Federal funds borrowed and security repurchase agreements						4,012,113				5,182,506				6,979,837
	Borrowed funds						6,974,817				9,772,611				4,495,831
	Long-term debt						15,976,934				14,858,014				13,137,293
	Corporation-obligated mandatorily redeemable capital securities of subsidiary trusts holding solely debentures of the Corporation						180,000				180,000				180,000
	Accrued expenses and other liabilities						1,335,080				1,334,325				1,270,942
			Total Liabilities				78,467,153				81,393,766				78,155,264
Stockholders’ Equity:
	Preferred stock						29,982				30,233				30,513
	Common stock						2,429,736				2,428,234				2,472,526
	Capital surplus						812,671				782,960				757,326
	Retained earnings						3,119,402				2,665,674				2,586,540
	Accumulated other comprehensive income (loss)						(258,311	)			(179,368	)			20,304
			Total Stockholders’ Equity				6,133,480				5,727,733				5,867,209
			Total Liabilities and Stockholders’ Equity			$	84,600,633			$	87,121,499			$	84,022,473

See notes to consolidated financial statements.

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CONSOLIDATED STATEMENTS OF CASH FLOWS

					Six Months Ended June 30
(In Thousands)					2000				1999
Operating Activities
	Net income				$	663,730			$	705,507
	Adjustments to reconcile net income to net cash provided by operating activities:
		Provision for loan losses				135,017				127,576
		Depreciation and amortization of properties and equipment				85,318				80,904
		Amortization of intangibles and servicing rights				92,758				84,298
		Amortization of premiums/discounts on securities and  debt				(3,848	)			(4,751	)
		Securities losses (gains)				21,247				(80,912	)
		Other gains and losses, net				(203,437	)			(117,056	)
		Originations and purchases of mortgage loans held for sale				(10,251,630	)			(8,909,996	)
		Proceeds from sales of mortgage loans held for sale				9,732,624				10,171,835
		Increase in interest receivable				(46,401	)			(27,838	)
		Increase in interest payable				83,140				28,390
		Net change in other assets/liabilities				26,864				(272,792	)
			Net cash provided by operating activities			335,382				1,785,165
Lending and Investing Activities
	Net decrease in federal funds sold, security resale agreements and other short-term investments					148,697				119,510
	Purchases of available-for-sale securities					(316,672	)			(2,840,626	)
	Proceeds from sales of available-for-sale securities					3,177,869				1,844,272
	Proceeds from maturities and prepayments of available-for-sale securities					1,193,468				1,819,409
	Net (increase) decrease in loans					(3,572,469	)			359,592
	Proceeds from sales of loans					2,148,449				82,962
	Net increase in properties and equipment					(52,462	)			(20,682	)
	Disposals					—				72,408
			Net cash provided by lending and investing activities			2,726,880				1,436,845
Deposit and Financing Activities
	Net decrease in Federal funds borrowed and security repurchase agreements					(1,170,393	)			(2,447,472	)
	Net (decrease) increase in borrowed funds					(2,797,794	)			2,377,915
	Net decrease in noninterest bearing, savings, NOW, money market accounts, and deposits in overseas offices					(938,425	)			(3,854,940	)
	Net increase (decrease) in time deposits					860,324				(2,300,608	)
	Repayment of long-term debt and capital securities					(3,087,475	)			(1,897,547	)
	Proceeds from issuance of long-term debt, net					4,205,253				5,526,688
	Dividends paid					(346,667	)			(334,130	)
	Issuances of common stock					41,569				95,389
	Repurchases of common stock					(47,142	)			(1,363,460	)
			Net cash used in deposit and financing activities			(3,280,750	)			(4,198,165	)
	Net decrease in cash and demand balances due from banks					(218,488	)			(976,155	)
	Cash and demand balances due from banks, January 1					3,480,756				4,783,491
	Cash and demand balances due from banks, June 30				$	3,262,268			$	3,807,336
Supplemental Disclosures
	Interest paid				$	1,670,242			$	1,367,286
	Income taxes paid					168,964				158,671

See notes to consolidated financial statements.

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																					Accumulated
																					Other
(Dollars in Thousands,					Preferred				Common				Capital				Retained				Comprehensive
Except Per Share Amounts)					Stock				Stock				Surplus				Earnings				Income				Total
Balance, January 1, 1999					$	36,098			$	1,305,309			$	1,968,751			$	3,430,672			$	272,078			$	7,012,908
	Comprehensive Income:
		Net income																705,507								705,507
		Other comprehensive income, net of tax:
			Change in unrealized gains and losses on securities of $(199,181), net of reclassification adjustment for gains included in net income of $52,593																			(251,774	)			(251,774	)
	Total comprehensive income																									453,733
	Common dividends declared, $.53 per  share																	(330,536	)							(330,536	)
	Preferred dividends declared																	(825	)							(825	)
	Issuance of 4,316,732 common shares under corporate stock and dividend reinvestment plans									8,633				86,756												95,389
	Purchase of 39,178,400 common shares									(78,357	)			(66,825	)			(1,218,278	)							(1,363,460	)
	Conversion of 111,697 shares of preferred stock to 338,334 common shares					(5,585	)			677				4,908												—
	Stock split									1,236,264				(1,236,264	)											—
Balance, June 30, 1999					$	30,513			$	2,472,526			$	757,326			$	2,586,540			$	20,304			$	5,867,209
Balance, January 1, 2000					$	30,233			$	2,428,234			$	782,960			$	2,665,674			$	(179,368	)		$	5,727,733
	Comprehensive Income:
		Net income																663,730								663,730
		Other comprehensive income, net of tax:
			Change in unrealized gains and losses on securities of $(92,754), net of reclassification adjustment for losses included in net income of $(13,811)																			(78,943	)			(78,943	)
	Total comprehensive income																									584,787
	Common dividends declared $.285 per share																	(173,024	)							(173,024	)
	Preferred dividends declared																	(443	)							(443	)
	Issuance of 2,510,377 common shares under corporate stock and dividend reinvestment plans									10,041				31,528												41,569
	Purchase of 2,150,000 common shares									(8,600	)			(2,007	)			(36,535	)							(47,142	)
	Conversion of 5,013 shares of preferred stock to 15,183 common shares					(251	)			61				190												—
Balance, June 30, 2000					$	29,982			$	2,429,736			$	812,671			$	3,119,402			$	(258,311	)		$	6,133,480

See notes to consolidated financial statements.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

     National City Corporation (“National City” or “the Corporation”) is a financial holding company headquartered in Cleveland, Ohio. National City operates banks and other financial service subsidiaries principally in Ohio, Michigan, Pennsylvania, Indiana, Kentucky and Illinois. Principal activities include commercial and retail banking, consumer finance, asset management, mortgage financing and servicing, and item processing.

1.	BASIS OF PRESENTATION AND ACCOUNTING POLICIES

    The consolidated financial statements include the accounts of the Corporation and its subsidiaries. All significant intercompany transactions and balances have been eliminated. Certain prior period amounts have been reclassified to conform with the current period presentation. The accounting and reporting policies of National City conform with accounting principles generally accepted in the United States. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. For the interim periods presented, management believes the unaudited consolidated financial statements reflect all adjustments of a normal recurring nature and disclosures which are necessary for a fair presentation of the results for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period. These interim financial statements should be read in conjunction with the Corporation’s 1999 Annual Report and Form 10-K.

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2.  RECENT ACCOUNTING PRONOUNCEMENTS

    Accounting for Derivative Instruments and Hedging Activities: Statement of Financial Accounting Standards (“SFAS”) No. 133, Accounting for Derivative Instruments and Hedging Activities, as amended by SFAS No. 137, Accounting for Derivative Instruments and Hedging Activities — Deferral of the Effective Date of FASB Statement No. 133 and SFAS No. 138, Accounting for Certain Derivative Instruments and Certain Hedging Activities, requires derivative instruments be carried at fair value on the balance sheet. The statement continues to allow the hedging of various risks with derivative instruments and sets forth specific criteria to be used to determine when hedge accounting can be used. The statement provides for changes in fair value or cash flows of both the derivative and the hedged asset or liability to be recognized in earnings in the same period. For derivative instruments not accounted for as hedges, changes in fair value are also required to be recognized in earnings.

3.	NONRECURRING ITEMS

    The following table summarizes various income and expense items designated as nonrecurring:

		Three Months								Six Months
		Ended								Ended
		June 30								June 30
(In Thousands)		2000				1999				2000				1999
Gain on sale of student loans		$	74,216			$	—			$	74,216			$	—
Loss on sale and impairment of certain securities			(58,379	)			—				(58,379	)			—
Gain on sale of Electronic Payment Services, Inc.			—				—				—				95,734
Gain on sale of Concord EFS, Inc. common stock			—				32,053				—				32,053
Gain on sale of Stored Value Systems, Inc.			—				—				—				6,050
Net gain (loss) on sale of National Processing business lines			—				6,038				—				(58,948	)
Facilities charge			—				(28,604	)			—				(28,604	)
Executive contract obligations			—				(9,162	)			—				(9,162	)
Net pre-tax nonrecurring income			15,837				325				15,837				37,123
Tax expense			5,543				779				5,543				34,429
Net after-tax nonrecurring income (loss)		$	10,294			$	(454	)		$	10,294			$	2,694

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4.  LOANS AND ALLOWANCE FOR LOAN LOSSES

    The following table presents the activity in the allowance for loan losses:

			Three Months								Six Months
			Ended								Ended
			June 30								June 30
(In Thousands)			2000				1999				2000				1999
Balance at beginning of period			$	970,642			$	970,336			$	970,463			$	970,243
Allowance related to loans acquired (sold)				(305	)			268				(305	)			361
Provision				68,691				59,542				135,017				127,576
Charge-offs:
	Commercial			25,085				32,018				49,226				45,041
	Real estate — commercial			3,282				738				3,537				2,115
	Real estate — residential			2,125				444				4,181				2,146
	Consumer			40,917				40,019				86,129				95,690
	Credit card			26,083				25,185				51,993				52,291
	Home equity			2,036				2,032				3,160				4,041
	Total charge-offs			99,528				100,436				198,226				201,324
Recoveries:
	Commercial			3,714				6,937				9,405				10,456
	Real estate — commercial			848				3,343				2,474				4,766
	Real estate — residential			153				805				258				948
	Consumer			19,074				22,910				37,569				44,347
	Credit card			6,313				5,468				12,207				10,794
	Home equity			760				1,056				1,500				2,062
	Total recoveries			30,862				40,519				63,413				73,373
Net charge-offs				68,666				59,917				134,813				127,951
Balance at end of period			$	970,362			$	970,229			$	970,362			$	970,229

    The allowance for loan losses is the amount believed adequate to absorb estimated credit losses in the loan portfolio based on management’s evaluation of various factors including overall growth in the portfolio, an analysis of individual credits, adverse situations that could affect a borrower’s ability to repay (including the timing of future payments), prior and current loss experience, and economic conditions. Loan losses are charged off against the allowance, while recoveries of amounts previously charged off are credited to the allowance. A provision for loan losses is charged to operations based on management’s periodic evaluation of the factors previously mentioned as well as other pertinent factors.

5.  SECURITIES

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			June 30, 2000
			Amortized				Fair
(In Thousands)			Cost				Value
U.S. Treasury and Federal agency debentures			$	975,019			$	935,886
Mortgage-backed securities				6,349,368				6,072,094
Asset-backed and corporate debt securities				1,871,928				1,848,943
States and political subdivisions				791,531				797,793
Other				1,128,841				1,064,569
	Total securities		$	11,116,687			$	10,719,285

			December 31, 1999
			Amortized				Fair
(In Thousands)			Cost				Value
U.S. Treasury and Federal agency debentures			$	1,171,397			$	1,119,508
Mortgage-backed securities				9,629,200				9,351,797
Asset-backed and corporate debt securities				2,633,335				2,600,128
States and political subdivisions				825,941				828,810
Other				920,376				1,004,100
	Total securities		$	15,180,249			$	14,904,343

			June 30, 1999
			Amortized				Fair
(In Thousands)			Cost				Value
U.S. Treasury and Federal agency debentures			$	1,178,507			$	1,144,713
Mortgage-backed securities				9,109,144				8,923,184
Asset-backed and corporate debt securities				2,887,087				2,869,398
States and political subdivisions				865,308				883,860
Other				922,333				1,172,461
	Total securities		$	14,962,379			$	14,993,616

6. BORROWED FUNDS

			Jun. 30				Dec. 31				Jun. 30
(In Thousands)			2000				1999				1999
U.S. Treasury demand notes			$	6,168,376			$	9,228,154			$	2,912,006
Commercial paper				784,675				313,396				917,987
Other				21,766				231,061				665,838
	Total borrowed funds		$	6,974,817			$	9,772,611			$	4,495,831

  U.S. Treasury demand notes represent secured borrowings from the U.S. Treasury. These borrowings are collateralized by qualifying securities and loans. The funds are placed with the banks at the discretion of the U.S. Treasury and may be called at any time.

7.  LONG-TERM DEBT

				Jun. 30				Dec. 31				Jun. 30
(Dollars in Thousands)				2000				1999				1999
9 7/8% subordinated notes due 1999				$	—			$	—			$	64,988
6.50% subordinated notes due 2000					—				99,983				99,957
8.50% subordinated notes due 2002					99,955				99,943				99,932
6 5/8% subordinated notes due 2004					249,525				249,460				249,396
7.75% subordinated notes due 2004					198,953				198,825				198,697
8.50% subordinated notes due 2004					149,548				149,484				149,421
7.20% subordinated notes due 2005					249,857				249,843				249,826
5.75% subordinated notes due 2009					299,014				298,956				298,899
6 7/8% subordinated notes due 2019					698,840				698,809				698,377
Other					10,000				10,000				11,882
	Total parent company				1,955,692				2,055,303				2,121,375
6.50% subordinated notes due 2003					199,788				199,750				199,710
7.25% subordinated notes due 2010					223,353				223,271				223,189
6.30% subordinated notes due 2011					200,000				200,000				200,000
7.25% subordinated notes due 2011					197,771				197,672				197,573
6.25% subordinated notes due 2011					297,510				297,394				297,278
Other					887				1,142				1,188
	Total subsidiary				1,119,309				1,119,229				1,118,938
	Total long-term debt qualifying for Tier 2 Capital				3,075,001				3,174,532				3,240,313
Senior bank notes					10,140,800				8,918,601				7,527,279
Federal Home Loan Bank advances					2,755,771				2,757,648				2,362,013
Other					5,362				7,233				7,688
	Total other long-term debt				12,901,933				11,683,482				9,896,980
		Total long-term debt		$	15,976,934			$	14,858,014			$	13,137,293

  All of the subordinated notes of the parent and bank subsidiaries pay interest semi-annually and may not be redeemed prior to maturity.

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8.	CORPORATION-OBLIGATED MANDATORILY REDEEMABLE CAPITAL SECURITIES OF SUBSIDIARY TRUSTS HOLDING SOLELY DEBENTURES OF THE CORPORATION

			Jun. 30				Dec. 31				Jun. 30
(Dollars in Thousands)			2000				1999				1999
8.12% capital securities of First of America Capital Trust  I, due January 31, 2027			$	150,000			$	150,000			$	150,000
9.85% capital securities of Fort Wayne Capital Trust I, due April 15, 2027				30,000				30,000				30,000
	Total capital securities		$	180,000			$	180,000			$	180,000

    The corporation-obligated mandatorily redeemable capital securities (the “capital securities”) of subsidiary trusts holding solely junior subordinated debt securities of the Corporation (the “debentures”) were issued by two statutory business trusts, First of America Capital Trust I and Fort Wayne Capital Trust I, of which 100% of the common equity in each of the trusts is owned by the Corporation. The trusts were formed for the purpose of issuing the capital securities and investing the proceeds from the sale of such capital securities in the debentures. The debentures held by each trust are the sole assets of that trust. Distributions on the capital securities issued by each trust are payable semiannually at a rate per annum equal to the interest rate being earned by the trust on the debentures held by that trust and are recorded as interest expense by the Corporation. The capital securities are subject to mandatory redemption, in whole or in part, upon repayment of the debentures. The Corporation has entered into agreements which, taken collectively, fully and unconditionally guarantee the capital securities subject to the terms of each of the guarantees.

9.  REGULATORY RESTRICTIONS AND CAPITAL RATIOS

  The Corporation and its banking subsidiaries are subject to various regulatory capital requirements administrated by the federal banking agencies that involve quantitative measures of assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Failure to meet minimum capital requirements can result in certain mandatory and possible additional discretionary actions by regulators that could have a material effect on the Corporation’s financial statements and operations.

		Jun. 30								Dec. 31								Jun. 30
		2000								1999								1999
(Dollars in
Millions)		Amount				Ratio				Amount				Ratio				Amount				Ratio
Total equity (a)		$	6,133.5				7.25	%		$	5,727.7				6.57	%		$	5,867.2				6.98	%
Total common equity(a)			6,103.5				7.21				5,697.5				6.54				5,836.7				6.95
Tangible  common equity (b)			4,841.0				5.81				4,391.1				5.12				4,799.5				5.78
Tier 1 capital(c)			5,341.3				7.24				4,828.0				6.61				5,037.6				7.14
Total risk- based capital (d)			8,964.7				12.15				8,190.2				11.22				8,544.2				12.12
Leverage(e)			5,341.3				6.28				4,828.0				5.72				5,037.6				6.06

(a)	Computed in accordance with generally accepted accounting principles, including unrealized fair value adjustment of securities available for sale.
(b)	Common stockholders’ equity less all intangible assets; computed as a ratio to total assets less all intangible assets.
(c)	Stockholders’ equity plus qualifying capital securities less certain intangibles and adjusted to exclude the unrealized fair value of securities available for sale; computed as a ratio to risk-adjusted assets, as defined.
(d)	Tier 1 capital plus qualifying loan loss allowance and subordinated debt and unrealized holding gains on certain equity securities; computed as a ratio to risk-adjusted assets, as defined.
(e)	Tier 1 capital; computed as a ratio to average total assets less certain intangible assets.

			Jun. 30				Dec. 31				Jun. 30
(In Millions)			2000				1999				1999
Goodwill			$	1,175.9			$	1,210.4			$	962.4
Other intangibles				86.6				96.0				74.8
	Total intangibles		$	1,262.5			$	1,306.4			$	1,037.2

10.  STOCKHOLDERS’ EQUITY

		Jun. 30				Dec. 31				Jun. 30
		2000				1999				1999
(Outstanding Shares)
Preferred Stock, no par value, authorized 5,000,000 shares			599,639				604,652				610,258
Common Stock, $4 par value, authorized 1,400,000,000 shares			607,433,924				607,058,364				618,131,386

    National City’s preferred stock has a stated value of $50 per share. The holders of the preferred shares are entitled to receive cumulative preferred dividends payable quarterly at the annual rate of 6%. The preferred shares may be redeemed by the Corporation at its option at any time, or from time to time, on or after April 1, 2002 at $50 per share, plus accrued and unpaid dividends. Such redemption may be subject to prior

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11.  INCOME TAX EXPENSE

    The composition of income tax expense follows:

			Six Months Ended
			June 30
(In Thousands)			2000				1999
Applicable to income exclusive of securities transactions			$	348,084			$	362,674
Applicable to securities transactions				(7,436	)			28,319
	Total income tax expense		$	340,648			$	390,993

    The effective tax rate was 33.9% and 35.7% for the six months ended June 30, 2000 and 1999, respectively. Income taxes for the first six months of 1999 included the effect of the write-off of nondeductible goodwill related to the disposal of certain National Processing business lines. See Note 3.

12.  CONTINGENT LIABILITIES

    During the fourth quarter of 1999, the Corporation was notified by the Internal Revenue Service (“IRS”) of adjustments relating to its corporate-owned life insurance (“COLI”) programs proposed in the Revenue Agent’s Reports for the Corporation’s Federal income tax returns for the years 1990 through 1995. These proposed adjustments involve the disallowance of certain deductions, which, with the expected effect on tax returns for years subsequent to 1995, represent an exposure for tax and interest of approximately $200 million. In the first quarter of 2000, the Corporation made payments of taxes and interest attributable to COLI interest deductions for years 1990 through 1995 to avoid the potential assessment by the IRS of any additional above-market rate interest on the contested amount. The payments to the IRS are included on the balance sheet in other assets pending the resolution of this matter. The Corporation will seek refund, either administratively or through litigation, of all amounts paid plus interest. Management does not agree with these proposed adjustments and will vigorously contest this claim. In the event resolution of this matter is unfavorable, it may have a material adverse effect on the Corporation’s net income for the period in which such unfavorable resolution occurs.

13.  NET INCOME PER SHARE

    The calculation of net income per common share follows:

			Three Months								Six Months
			Ended								Ended
			June 30								June 30
(In Thousands, Except
Per Share Amounts)			2000				1999				2000				1999
Basic:
	Net income		$	342,387			$	354,488			$	663,730			$	705,507
	Less preferred dividends			450				410				900				825
	Net income applicable to common stock		$	341,937			$	354,078			$	662,830			$	704,682
	Average common shares outstanding			606,928				623,117				606,347				632,004
	Net income per common share — basic			$.56				$.56				$1.09				$1.11
Diluted:
	Net income		$	342,387			$	354,488			$	663,730			$	705,507
	Average common shares outstanding			606,928				623,117				606,347				632,004
	Stock option adjustment			2,326				8,315				2,716				8,734
	Preferred stock adjustment			1,816				1,848				1,819				1,899
	Average common shares outstanding — diluted			611,070				633,280				610,882				642,637
	Net income per common share — diluted			$.56				$.56				$1.09				$1.10

14.  OFF-BALANCE SHEET FINANCIAL AGREEMENTS

    The Corporation uses a variety of off-balance sheet financial instruments such as interest rate swaps, futures, options, forwards, and cap and floor contracts. These financial agreements, frequently called interest rate derivatives, enable the Corporation to manage its exposure to changes in interest rates. As with any financial instrument, derivatives have inherent risks. Market risk includes the risk of gains and losses that result from changes in interest rates. These gains and losses may be offset by other on- or off-balance sheet transactions. Credit risk is the risk that a counterparty to a derivative contract with an unrealized gain fails to perform according to the terms of the agreement. Credit risk can be measured as the cost of acquiring a new derivative agreement with cash flows identical to those of a defaulted agreement in the current interest rate environment. The credit exposure to counterparties is

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    Summary information regarding derivatives used for interest rate and mortgage servicing risk management at June 30, 2000 and December 31, 1999 follows:

				Interest Rate Risk Management
				Notional Amount Applicable to Hedged Item
																Total				Net Unrealized
(In Thousands)				Loans				Securities				Funding				Notional				Gain (Loss)
June 30, 2000:
Interest rate swaps
	Receive fixed swaps			$	594,313			$	—			$	5,934,000			$	6,528,313			$	(237,336	)
	Pay fixed swaps				3,091,891				250,000				1,000,000				4,341,891				112,960
	Basis swaps				2,350,000				—				3,026,000				5,376,000				(14,865	)
	Principal only swaps				—				—				—				—				—
		Total interest rate swaps			6,036,204				250,000				9,960,000				16,246,204				(139,241	)
Interest rate caps and floors
	Eurodollar caps purchased				3,501				20,000				—				23,501				(28	)
	Eurodollar caps sold				340,000				—				—				340,000				1,587
	Eurodollar floors purchased				1,165,000				25,000				—				1,190,000				(3,439	)
	Eurodollar floors sold				10,000				—				—				10,000				(210	)
	U.S. Treasury caps purchased				—				—				—				—				—
	U.S. Treasury floors purchased				—				—				—				—				—
		Total interest rate caps and floors			1,518,501				45,000				—				1,563,501				(2,090	)
Interest rate futures
	Eurodollar futures purchased				467,000				—				—				467,000				121
	Eurodollar futures sold				1,265,000				5,227,000				4,500,000				10,992,000				(10,700	)
		Total interest rate futures			1,732,000				5,227,000				4,500,000				11,459,000				(10,579	)
		Total interest rate swaps, caps, floors and futures		$	9,286,705			$	5,522,000			$	14,460,000			$	29,268,705			$	(151,910	)

[Additional columns below]

[Continued from above table, first column(s) repeated]

				Mortgage Servicing Risk
				Management
								Net Unrealized
(In Thousands)				Notional				Gain (Loss)
June 30, 2000:
Interest rate swaps
	Receive fixed swaps			$	1,378,000			$	(61,101	)
	Pay fixed swaps				—				—
	Basis swaps				—				—
	Principal only swaps				400,311				(47,688	)
		Total interest rate swaps			1,778,311				(108,789	)
Interest rate caps and floors
	Eurodollar caps purchased				—				—
	Eurodollar caps sold				—				—
	Eurodollar floors purchased				—				—
	Eurodollar floors sold				—				—
	U.S. Treasury caps purchased				2,690,000				10,412
	U.S. Treasury floors purchased				300,000				177
		Total interest rate caps and floors			2,990,000				10,589
Interest rate futures
	Eurodollar futures purchased				—				—
	Eurodollar futures sold				—				—
		Total interest rate futures			—				—
		Total interest rate swaps, caps, floors and futures		$	4,768,311			$	(98,200	)

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				Interest Rate Risk Management
				Notional Amount Applicable to Hedged Item
																Total				Net Unrealized
(In Thousands)				Loans				Securities				Funding				Notional				Gain (Loss)
December 31, 1999:
Interest rate swaps
	Receive fixed swaps			$	961,488			$	—			$	4,792,000			$	5,753,488			$	(210,781	)
	Pay fixed swaps				2,690,841				156,000				1,000,000				3,846,841				100,366
	Basis swaps				2,000,000				—				4,091,000				6,091,000				(4,676	)
	Principal only swaps				—				—				—				—				—
		Total interest rate swaps			5,652,329				156,000				9,883,000				15,691,329				(115,091	)
Interest rate caps and floors
	Eurodollar caps purchased				3,605				70,000				1,500,000				1,573,605				(592	)
	Eurodollar caps sold				35,000				—				—				35,000				(190	)
	Eurodollar floors purchased				665,000				525,000				—				1,190,000				(2,649	)
	Eurodollar floors sold				10,000				—				—				10,000				92
	U.S. Treasury caps purchased				—				—				—				—				—
	U.S. Treasury floors purchased				—				—				—				—				—
		Total interest rate caps and floors			713,605				595,000				1,500,000				2,808,605				(3,339	)
Interest rate futures
	Eurodollar futures purchased				637,000				—				—				637,000				(203	)
	Eurodollar futures sold				808,000				10,613,000				—				11,421,000				1,135
	U.S. Treasury futures sold				—				143,000				—				143,000				—
		Total interest rate futures			1,445,000				10,756,000				—				12,201,000				932
		Total interest rate swaps, caps, floors and futures		$	7,810,934			$	11,507,000			$	11,383,000			$	30,700,934			$	(117,498	)

[Additional columns below]

[Continued from above table, first column(s) repeated]

				Mortgage Servicing Risk
				Management
								Net Unrealized
(In Thousands)				Notional				Gain (Loss)
December 31, 1999:
Interest rate swaps
	Receive fixed swaps			$	1,808,000			$	(102,915	)
	Pay fixed swaps				—				—
	Basis swaps				—				—
	Principal only swaps				364,792				(60,332	)
		Total interest rate swaps			2,172,792				(163,247	)
Interest rate caps and floors
	Eurodollar caps purchased				—				—
	Eurodollar caps sold				—				—
	Eurodollar floors purchased				—				—
	Eurodollar floors sold				—				—
	U.S. Treasury caps purchased				2,690,000				29,334
	U.S. Treasury floors purchased				700,000				143
		Total interest rate caps and floors			3,390,000				29,477
Interest rate futures
	Eurodollar futures purchased				—				—
	Eurodollar futures sold				—				—
	U.S. Treasury futures sold				—				—
		Total interest rate futures			—				—
		Total interest rate swaps, caps, floors and futures		$	5,562,792			$	(133,770	)

15.  LINE OF BUSINESS REPORTING

    National City operates six major lines of business: corporate banking, retail sales and distribution, consumer finance, asset management, National City Mortgage and National Processing.

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						Retail
						Sales
		Corporate				and				Consumer				Asset				National City
(In Thousands)		Banking				Distribution				Finance				Management				Mortgage
Quarter Ended June 30, 2000
Net interest income (expense) (a)		$	233,115			$	371,227			$	158,197			$	25,009			$	11,016
Provision (benefit) for loan losses			22,382				9,641				37,531				2,317				—
Net interest income (expense) after provision			210,733				361,586				120,666				22,692				11,016
Noninterest income (loss)			60,193				135,579				119,457				125,340				111,983
Noninterest expense			99,079				281,172				115,057				83,462				86,341
Income (loss) before taxes			171,847				215,993				125,066				64,570				36,658
Income tax expense (benefit) (a)			64,855				82,759				48,223				23,943				13,935
Net income (loss)		$	106,992			$	133,234			$	76,843			$	40,627			$	22,723
Intersegment revenue (expense)		$	—			$	3,109			$	—			$	6,847			$	2,675
Average assets (in millions)		$	27,699			$	16,487			$	18,696			$	2,425			$	3,643
Quarter Ended June 30, 1999
Net interest income (expense) (a)		$	215,531			$	374,505			$	148,260			$	22,750			$	14,232
Provision (benefit) for loan losses			21,915				6,426				39,080				220				—
Net interest income (expense) after provision			193,616				368,079				109,180				22,530				14,232
Noninterest income			49,419				133,064				24,436				123,786				83,131
Noninterest expense			97,652				285,945				66,454				84,866				60,515
Income (loss) before taxes			145,383				215,198				67,162				61,450				36,848
Income tax expense (benefit) (a)			54,154				81,468				25,176				22,431				14,195
Net income		$	91,229			$	133,730			$	41,986			$	39,019			$	22,653
Intersegment revenue (expense)		$	—			$	2,190			$	—			$	9,612			$	3,018
Average assets (in millions)		$	25,993			$	17,128			$	15,449			$	2,318			$	3,152
Six Months Ended June 30, 2000
Net interest income (expense) (a)		$	453,079			$	739,827			$	314,993			$	48,913			$	19,072
Provision (benefit) for loan losses			37,796				18,794				82,530				3,207				—
Net interest income (expense) after provision			415,283				721,033				232,463				45,706				19,072
Noninterest income			114,136				264,614				159,196				246,373				207,536
Noninterest expense			202,463				564,618				210,625				171,894				164,980
Income (loss) before taxes			326,956				421,029				181,034				120,185				61,628
Income tax expense (benefit) (a)			123,432				161,410				69,636				44,629				23,456
Net income (loss)		$	203,524			$	259,619			$	111,398			$	75,556			$	38,172
Intersegment revenue (expense)		$	—			$	7,431			$	—			$	14,389			$	5,491
Average assets (in millions)		$	27,293			$	16,519			$	18,536			$	2,399			$	3,211
Six Months Ended June 30, 1999
Net interest income (expense) (a)		$	427,972			$	741,536			$	295,209			$	43,864			$	29,775
Provision (benefit) for loan losses			29,568				18,993				94,218				1,256				—
Net interest income (expense) after provision			398,404				722,543				200,991				42,608				29,775
Noninterest income			101,675				271,040				45,565				239,013				165,934
Noninterest expense			192,646				581,724				132,937				169,058				120,393
Income (loss) before taxes			307,433				411,859				113,619				112,563				75,316
Income tax expense(a)			114,492				155,990				42,755				41,147				28,882
Net income (loss)		$	192,941			$	255,869			$	70,864			$	71,416			$	46,434
Intersegment revenue (expense)		$	—			$	33,911			$	—			$	16,488			$	5,488
Average assets (in millions)		$	25,908			$	17,783			$	15,187			$	2,262			$	3,058

[Additional columns below]

[Continued from above table, first column(s) repeated]

		National				Parent				Consolidated
(In Thousands)		Processing				and Other				Total
Quarter Ended June 30, 2000
Net interest income (expense) (a)		$	2,228			$	(51,820	)		$	748,972
Provision (benefit) for loan losses			—				(3,180	)			68,691
Net interest income (expense) after provision			2,228				(48,640	)			680,281
Noninterest income (loss)			102,794				(23,798	)			631,548
Noninterest expense			89,044				30,915				785,070
Income (loss) before taxes			15,978				(103,353	)			526,759
Income tax expense (benefit) (a)			6,758				(56,101	)			184,372
Net income (loss)		$	9,220			$	(47,252	)		$	342,387
Intersegment revenue (expense)		$	—			$	(12,631	)		$	—
Average assets (in millions)		$	375			$	17,446			$	86,771
Quarter Ended June 30, 1999
Net interest income (expense) (a)		$	456			$	(17,548	)		$	758,186
Provision (benefit) for loan losses			—				(8,099	)			59,542
Net interest income (expense) after provision			456				(9,449	)			698,644
Noninterest income			127,124				59,895				600,855
Noninterest expense			106,121				55,682				757,235
Income (loss) before taxes			21,459				(5,236	)			542,264
Income tax expense (benefit) (a)			6,807				(16,455	)			187,776
Net income		$	14,652			$	11,219			$	354,488
Intersegment revenue (expense)		$	—			$	(14,820	)		$	—
Average assets (in millions)		$	369			$	18,960			$	83,369
Six Months Ended June 30, 2000
Net interest income (expense) (a)		$	4,086			$	(90,103	)		$	1,489,867
Provision (benefit) for loan losses			—				(7,310	)			135,017
Net interest income (expense) after provision			4,086				(82,793	)			1,354,850
Noninterest income			199,075				19,517				1,210,447
Noninterest expense			172,902				56,681				1,544,163
Income (loss) before taxes			30,259				(119,957	)			1,021,134
Income tax expense (benefit) (a)			12,657				(77,816	)			357,404
Net income (loss)		$	17,602			$	(42,141	)		$	663,730
Intersegment revenue (expense)		$	—			$	(27,311	)		$	—
Average assets (in millions)		$	370			$	18,033			$	86,361
Six Months Ended June 30, 1999
Net interest income (expense) (a)		$	2,121			$	(17,592	)		$	1,522,885
Provision (benefit) for loan losses			—				(16,459	)			127,576
Net interest income (expense) after provision			2,121				(1,133	)			1,395,309
Noninterest income			178,732				213,475				1,215,434
Noninterest expense			219,426				80,253				1,496,437
Income (loss) before taxes			(38,573	)			132,089				1,114,306
Income tax expense(a)			7,649				17,884				408,799
Net income (loss)			(46,222	)			114,205			$	705,507
Intersegment revenue (expense)		$	—			$	(55,887	)		$	—
Average assets (in millions)		$	437			$	19,804			$	84,439

^(a) Includes tax-equivalent adjustment for tax-exempt interest income.

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Financial Highlights

			Three Months Ended June 30								Six Months Ended June 30
(In Millions)				2000				1999				2000				1999
Corporate banking			$	107.0			$	91.2			$	203.5			$	192.9
Retail sales and distribution				133.2				133.7				259.6				255.9
Consumer finance				76.8				42.0				111.4				70.9
Asset management				40.6				39.0				75.6				71.4
National City Mortgage				22.8				22.7				38.2				46.4
National Processing				9.2				14.7				17.6				(46.2	)
Parent and other				(47.2	)			11.2				(42.2	)			114.2
	Consolidated total		$	342.4			$	354.5			$	663.7			$	705.5

Line of Business Results

     National City’s operations are managed along six major lines of business: corporate banking, retail sales and distribution, consumer finance, asset management, National City Mortgage and National Processing. Note 15 to the Consolidated Financial Statements provides selected financial information for each business line. Table 1 summarizes net income by line of business.

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Net Interest Income

     Tax-equivalent net interest income for the second quarter and first six months of 2000 was $749.0 million and $1,489.9 million, respectively, down from $758.2 million and $1,522.9 million for the comparable 1999 periods. On a year-to-date basis, the net interest margin declined in 2000 to 3.79% from 4.03% last year. Higher-cost funding in a rising rate environment combined with the Corporation’s liability sensitivity and increasing competition in the loan markets acted to narrow net interest income and margin in the first half of 2000. In addition, interest expense incurred as a result of funding share repurchase activity had the effect of reducing the 2000 year-to-date margin by ap-

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			Three Months Ended
(In Millions)				Jun. 30 2000				Mar. 31 2000				Jun. 30 1999
Loans			$	65,385			$	63,144			$	59,601
Securities (at cost)				13,064				14,600				14,638
Other				578				635				999
	Total earning assets		$	79,027			$	78,379			$	75,238

Table 3:  Average Sources of Funding

			Three Months Ended
(In Millions)				Jun. 30 2000				Mar. 31 2000				Jun. 30 1999
Noninterest bearing deposits			$	10,934			$	10,716			$	11,542
Interest bearing core deposits				35,183				34,875				35,802
	Total core deposits			46,117				45,591				47,344
Purchased deposits				5,743				6,225				5,199
Short-term borrowings				11,109				10,849				10,354
Long-term debt and capital securities				16,636				16,259				13,305
	Total funding		$	79,605			$	78,924			$	76,202

Table 4:  Percentage Composition of Average Funding Sources

			Three Months Ended
(In Millions)			Jun.  30 2000					Mar.  31 2000				Jun.  30 1999
Core deposits				57.9	%			57.8	%			62.1	%
Purchased deposits				7.2				7.9				6.8
Short-term borrowings				14.0				13.7				13.6
Long-term debt and capital securities				20.9				20.6				17.5
	Total			100.0	%			100.0	%			100.0	%

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			Three Months Ended												Six Months Ended
(In Thousands)				Jun. 30 2000				Mar. 31 2000				Jun. 30 1999				Jun. 30 2000				Jun. 30 1999
Item processing revenue			$	100,575			$	94,369			$	105,089			$	194,944			$	226,792
Service charges on deposits				108,073				106,313				104,834				214,386				204,697
Mortgage banking revenue				147,610				111,294				89,181				258,904				182,176
Trust and investment management fees				90,054				83,624				80,683				173,678				162,530
Card-related fees				45,312				43,646				49,259				88,958				94,569
Brokerage revenue				24,587				27,011				29,042				51,598				53,486
Service fees — other				30,918				24,337				21,397				55,255				46,352
Other				52,983				66,772				58,108				119,755				121,084
	Total fees and other income			600,112				557,366				537,593				1,157,478				1,091,686
Securities gains				15,599				21,533				25,171				37,132				48,859
	Total noninterest income before nonrecurring items			615,711				578,899				562,764				1,194,610				1,140,545
Nonrecurring income, net				15,837				—				38,091				15,837				74,889
	Total noninterest income		$	631,548			$	578,899			$	600,855			$	1,210,447			$	1,215,434

Noninterest Income

     Certain events designated as nonrecurring affected reported noninterest income in 2000 and 1999 and are described in detail in Note 3 to the Consolidated Financial Statements. Excluding these nonrecurring items, fees and other income (Table 5) for the second quarter of 2000 increased to $600.1 million from $537.6 million in the second quarter of 1999. On this same basis, fees and other income for the first half of 2000 reached $1,157.5 million, up from $1.091.7 million last year. Affecting the year-over-year comparisons of fee income were the 1999 divestitures of certain business lines at National Processing, Inc., the Corporation’s 88%-owned item processing subsidiary, which prior to disposal in 1999 contributed $17.6 million and $56.7 million to fee income in the second quarter and first half, respectively. Excluding the effects of these business lines from the 1999 periods, fees and other income for the second quarter and first half of 2000 grew 15% and 12%, respectively, over the comparable 1999 periods due primarily to growth in mortgage banking revenue, item processing revenue, deposit and other bank service fees, and trust and investment management fees. These same revenue sources also drove the 8% growth in fees and other income from the first quarter to the second quarter of 2000.

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			Three Months Ended												Six Months Ended
(In Thousands)				Jun. 30 2000				Mar. 31 2000				Jun. 30 1999				Jun. 30 2000				Jun. 30 1999
Salaries			$	341,735			$	335,037			$	307,127			$	676,772			$	625,888
Benefits and other personnel				59,574				71,834				73,296				131,408				155,299
Equipment				57,759				57,682				52,955				115,441				105,716
Net occupancy				51,816				52,668				49,234				104,484				103,361
Third-party services				48,546				45,148				48,551				93,694				94,121
Card processing fees				40,493				38,198				38,024				78,691				71,619
Postage and supplies				31,701				30,611				29,912				62,312				64,954
Amortization of intangibles				21,975				22,100				17,448				44,075				35,046
Telephone				18,371				20,276				19,634				38,647				38,590
Marketing and public relations				23,377				22,712				14,809				46,089				25,582
State and local taxes				8,122				7,708				12,412				15,830				25,182
Travel and entertainment				15,149				13,639				12,724				28,788				24,630
Other				66,452				41,480				43,343				107,932				88,683
	Total noninterest expense before nonrecurring items			785,070				759,093				719,469				1,544,163				1,458,671
Nonrecurring expense				—				—				37,766				—				37,766
	Total noninterest expense		$	785,070			$	759,093			$	757,235			$	1,544,163			$	1,496,437

Noninterest Expense

     Noninterest expense (Table 6) was $785.1 million in the second quarter of 2000, compared to $759.1 million in the first quarter and $757.2 million in the 1999 second quarter. Noninterest expense for the first half of 2000 was $1,544.2 million compared to $1,496.4 million for the first half of 1999. Noninterest expense for the second quarter and first half of 1999 included $37.8 million in nonrecurring pre-tax charges pursuant to a plan to improve the cost-efficiency of branch office facilities, along with certain unrelated executive contract obligations. On a linked-quarter basis, higher expenses reflected volume-driven expenses related primarily to activities at National City Mortgage and National Processing, a $15.0 million write-down of auto lease residual values and other miscellaneous accrual adjustments, offset to some extent by a decline in benefits and other personnel expenses principally due to a reduction in payroll taxes. Compared to the prior- year periods, noninterest expense, excluding the 1999 nonrecurring items, was up in 2000 due to higher technology and marketing spending, fee-based business volume increases, expenses and intangibles amortization from 1999 purchase acquisitions, and the aforementioned residual value write-down. These increases were partially offset by lower expenses from the second quarter 1999 disposition of the National Processing business lines, decreases in benefits and other personnel expense and reduced state and local tax expense. A decline in expense related to compensation and benefit plans and an increase in costs capitalized in conjunction with internally- developed software projects accounted for the decrease in benefits and other personnel expense, while state and local tax expense decreased due to several refunds in 2000.

Asset Quality

     Credit quality remained sound in the second quarter of 2000. Net charge offs as a percentage of average loans were .44% for the second quarter, unchanged from the first quarter of this year and up only slightly from .42% in the second quarter of 1999. Year-to-date net charge-offs as a percentage of average loans declined in the first half of 2000 to .44% from .45% last year. Table 7 presents net charge-offs as a percentage of average loans by portfolio type. Actual net charge-offs rose slightly in the second quarter of 2000 to $68.7 million from $66.1 million in the first quarter. For the six months ended, net charge-offs totaled $134.8 million in 2000 compared to $128.0 million in the first half of 1999.

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Table 7:	Annualized Net Charge-Offs as a Percentage of Average Loans

			Three Months Ended												Six Months Ended
				Jun.  30				Mar.  31				Jun.  30				Jun.  30				Jun.  30
				2000				2000				1999				2000				1999
Commercial				.35	%			.32	%			.45	%			.33	%			.31	%
Real estate — commercial				.16				(.09	)			(.17	)			.04				(.08	)
Real estate — residential				.08				.08				(.02	)			.08				.03
Consumer				.56				.67				.45				.61				.69
Credit card				3.16				3.45				4.05				3.30				4.43
Home equity				.13				.04				.12				.09				.13
	Total net charge-offs to average loans			.44	%			.44	%			.42	%			.44	%			.45	%

Table 8:  Nonperforming Assets

(In Millions)					Jun.  30 2000				Mar.  31 2000			Dec.  31 1999					Sep.  30 1999				Jun.  30 1999
Commercial:
	Nonaccrual			$	155.3			$	138.4			$	130.2			$	106.7			$	97.1
	Restructured				.2				.2				.2				.2				.3
		Total commercial			155.5				138.6				130.4				106.9				97.4
Real estate mortgage:
	Nonaccrual				158.0				150.5				137.0				126.9				123.0
	Restructured				.2				1.7				1.8				2.3				2.4
		Total real estate mortgage			158.2				152.2				138.8				129.2				125.4
		Total nonperforming loans			313.7				290.8				269.2				236.1				222.8
Other real estate owned (OREO)					25.6				23.3				19.9				23.9				26.7
Nonperforming assets				$	339.3			$	314.1			$	289.1			$	260.0			$	249.5
Loans 90 days past due accruing interest				$	249.4			$	250.0			$	230.0			$	244.0			$	199.6

Capital

     The Corporation has consistently maintained regulatory capital ratios at or above the “well-capitalized” standards. For further detail on capital ratios, see Note 9 to the Consolidated Financial Statements.

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Forward-Looking Statements

     The discussion regarding the Corporation’s interest rate risk position included in the section entitled “Net Interest Income” contains certain forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). These forward-looking statements 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 National City believes the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially.

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Consolidated Average Balance Sheets

						Three Months Ended								Six Months Ended
						June 30								June 30
(In Millions)						2000				1999				2000				1999
Assets
Earning Assets:
	Loans:
			Commercial			$	24,379			$	22,228			$	23,937			$	22,190
			Real estate — commercial				6,157				6,275				6,088				6,290
			Real estate — residential				9,721				8,483				9,505				8,712
			Consumer				15,722				15,130				15,928				15,040
			Credit card				2,514				1,953				2,425				1,891
			Home equity				4,044				3,188				3,907				3,172
				Total loans			62,537				57,257				61,790				57,295
	Mortgage loans held for sale						2,848				2,344				2,475				2,650
	Securities available for sale, at cost						13,064				14,638				13,833				14,881
	Federal funds sold and security resale agreements						432				850				456				898
	Other short-term investments						146				149				150				148
				Total earning assets			79,027				75,238				78,704				75,872
Allowance for loan losses							(995	)			(989	)			(995	)			(987	)
Fair value (depreciation) appreciation of securities available for sale							(430	)			268				(419	)			322
Cash and demand balances due from banks							3,116				3,506				3,128				3,785
Properties and equipment							1,114				1,158				1,121				1,169
Accrued income and other assets							4,939				4,188				4,822				4,278
				Total Assets		$	86,771			$	83,369			$	86,361			$	84,439
Liabilities and Stockholders’ Equity
Liabilities:
	Noninterest bearing deposits					$	10,934			$	11,542			$	10,825			$	11,610
	NOW and money market accounts						16,477				16,997				16,460				16,949
	Savings accounts						3,321				3,922				3,367				3,938
	Time deposits of individuals						15,385				14,883				15,202				15,230
	Other time deposits						2,881				2,857				2,853				3,083
	Deposits in overseas offices						2,862				2,342				3,131				2,684
				Total deposits			51,860				52,543				51,838				53,494
	Federal funds borrowed and security repurchase agreements						6,053				7,377				6,889				8,187
	Borrowed funds						5,056				2,977				4,090				2,908
	Long-term debt and capital securities						16,636				13,305				16,448				12,309
	Accrued expenses and other liabilities						1,190				951				1,219				1,054
				Total Liabilities			80,795				77,153				80,484				77,952
Stockholders’ Equity:
		Preferred					30				31				30				31
		Common					5,946				6,185				5,847				6,456
				Total Stockholders’ Equity			5,976				6,216				5,877				6,487
				Total Liabilities and Stockholders’ Equity		$	86,771			$	83,369			$	86,361			$	84,439

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(Dollars in Millions)		Daily Average Balance

						2000								1999
						Second				First				Fourth				Third				Second
						Quarter				Quarter				Quarter				Quarter				Quarter
Assets
Earning Assets:
	Loans:
		Commercial				$	24,379			$	23,496			$	22,988			$	22,066			$	22,228
		Real estate — commercial					6,157				6,020				6,141				6,238				6,275
		Real estate — residential(a)					12,569				11,392				11,030				10,534				10,827
		Consumer					15,722				16,130				15,617				15,052				15,130
		Credit Card					2,514				2,336				2,224				2,088				1,953
		Home equity					4,044				3,770				3,561				3,336				3,188
			Total loans				65,385				63,144				61,561				59,314				59,601
	Securities:
		Taxable					12,267				13,789				14,565				14,000				13,761
		Tax-exempt					797				811				838				851				877
			Total securities				13,064				14,600				15,403				14,851				14,638
	Short-term investments						578				635				798				806				999
			Total earning assets/
				Total interest income/rates			79,027				78,379				77,762				74,971				75,238
Allowance for loan losses							(995	)			(996	)			(985	)			(990	)			(989	)
Fair value (depreciation) appreciation of securities available for sale							(430	)			(408	)			(116	)			(8	)			268
Cash and demand balances due from banks							3,116				3,140				3,376				3,306				3,506
Properties and equipment, accrued income and other assets							6,053				5,836				5,563				5,412				5,346
			Total assets			$	86,771			$	85,951			$	85,600			$	82,691			$	83,369
Liabilities and Stockholders’ Equity
Interest bearing liabilities:
	NOW and money market accounts					$	16,477			$	16,443			$	16,580			$	16,742			$	16,997
	Savings accounts						3,321				3,413				3,605				3,795				3,922
	Time deposits of individuals						15,385				15,019				14,578				14,461				14,883
	Other time deposits						2,881				2,825				3,141				2,908				2,857
	Deposits in overseas offices						2,862				3,400				3,105				2,389				2,342
	Federal funds borrowed						2,277				3,642				3,713				2,889				2,467
	Security repurchase agreements						3,776				4,081				4,531				4,814				4,910
	Borrowed funds						5,056				3,126				2,893				2,808				2,977
	Long-term debt and capital securities						16,636				16,259				15,081				13,532				13,305
			Total interest bearing liabilities/
				Total interest expense/rates			68,671				68,208				67,227				64,338				64,660
	Noninterest bearing deposits						10,934				10,716				11,278				11,338				11,542
	Accrued expenses and other liabilities						1,190				1,249				1,105				1,046				951
			Total liabilities				80,795				80,173				79,610				76,722				77,153
Total stockholders’ equity							5,976				5,778				5,990				5,969				6,216
			Total liabilities and stockholders’ equity			$	86,771			$	85,951			$	85,600			$	82,691			$	83,369
Net interest income
Interest spread
Contribution of noninterest bearing sources of funds
Net interest margin

(a)	Includes mortgage loans held for sale.

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						Quarterly Interest
						2000								1999
						Second				First				Fourth				Third				Second
						Quarter				Quarter				Quarter				Quarter				Quarter
Assets
Earning Assets:
	Loans:
		Commercial				$	533.8			$	490.1			$	471.6			$	434.9			$	423.4
		Real estate— commercial					134.9				130.7				134.4				135.8				133.8
		Real estate— residential(a)					251.5				220.3				211.3				198.4				202.5
		Consumer					337.0				342.8				333.5				318.5				317.5
		Credit Card					86.3				77.7				71.7				70.3				65.5
		Home equity					93.0				83.4				76.4				70.6				66.2
			Total loans				1,436.5				1,345.0				1,298.9				1,228.5				1,208.9
	Securities:
		Taxable					191.2				216.0				226.6				217.2				208.4
		Tax-exempt					16.2				16.6				17.3				17.5				19.3
			Total securities				207.4				232.6				243.9				234.7				227.7
	Short-term investments						10.9				10.9				13.3				11.7				12.9
			Total earning assets/
			Total interest income/rates			$	1,654.8			$	1,588.5			$	1,556.1			$	1,474.9			$	1,449.5
Allowance for loan losses
Fair value (depreciation) appreciation of securities available for sale
Cash and demand balances due from banks
Properties and equipment, accrued income and other assets
			Total assets
Liabilities and Stockholders’ Equity
Interest bearing liabilities:
NOW and money market accounts						$	149.3				140.0			$	135.2			$	131.2			$	126.7
		Savings accounts					13.7				14.2				15.1				16.0				16.6
		Time deposits of individuals					215.1				201.0				190.3				183.5				187.7
		Other time deposits					43.9				41.0				43.6				36.7				34.4
		Deposits in overseas offices					44.3				47.7				41.6				30.1				27.7
		Federal funds borrowed					37.1				53.9				51.3				37.5				29.6
		Security repurchase agreements					48.6				48.7				49.9				50.3				49.8
		Borrowed funds					77.6				43.3				41.1				37.7				36.9
		Long-term debt and capital securities					276.0				257.8				231.6				194.2				181.9
			Total interest bearing liabilities/
				Total interest expense/rates		$	905.8			$	847.6			$	799.7			$	717.2			$	691.3
		Noninterest bearing deposits
		Accrued expenses and other liabilities
			Total liabilities
Total stockholders’ equity
			Total liabilities and stockholders’ equity
Net interest income						$	749.0			$	740.9			$	756.4			$	757.7			$	758.2
Interest spread
Contribution of noninterest bearing sources of funds
Net interest margin

						Average Annualized Rate
						2000								1999
						Second				First				Fourth				Third				Second
						Quarter				Quarter				Quarter				Quarter				Quarter
Assets
Earning Assets:
	Loans:
		Commercial				$	8.80	%			8.39	%			8.14	%			7.82	%			7.64	%
		Real estate — commercial					8.82				8.73				8.68				8.63				8.55
		Real estate — residential(a)					8.01				7.74				7.66				7.54				7.48
		Consumer					8.62				8.55				8.47				8.40				8.42
		Credit Card					13.81				13.38				12.79				13.36				13.45
		Home equity					9.19				8.85				8.52				8.40				8.32
			Total loans				8.82				8.56				8.38				8.23				8.13
	Securities:
		Taxable					6.24				6.27				6.22				6.20				6.06
		Tax-exempt					8.13				8.19				8.25				8.24				8.80
			Total securities				6.35				6.38				6.33				6.32				6.22
	Short-term investments						7.51				6.88				6.58				5.83				5.15
			Total earning assets/
				Total interest income/rates			8.41	%			8.14	%			7.96	%			7.83	%			7.72	%
Allowance for loan losses
Fair value (depreciation) appreciation of securities available for sale
Cash and demand balances due from banks
Properties and equipment, accrued income and other assets
			Total assets
Liabilities and Stockholders’ Equity
Interest bearing liabilities:
		NOW and money market accounts					3.64	%			3.43	%			3.24	%			3.11	%			2.99	%
		Savings accounts					1.66				1.67				1.67				1.67				1.70
		Time deposits of individuals					5.62				5.38				5.18				5.04				5.06
		Other time deposits					6.13				5.84				5.51				5.00				4.84
		Deposits in overseas offices					6.22				5.64				5.32				5.00				4.74
		Federal funds borrowed					6.56				5.95				5.46				5.16				4.82
		Security repurchase agreements					5.18				4.80				4.38				4.15				4.06
		Borrowed funds					6.19				5.57				5.64				5.32				4.98
		Long-term debt and capital securities					6.67				6.37				6.09				5.69				5.48
			Total interest bearing liabilities/
				Total interest expense/rates			5.30	%			5.00	%			4.72	%			4.42	%			4.29	%
		Noninterest bearing deposits
		Accrued expenses and other liabilities
			Total liabilities
Total stockholders’ equity
			Total liabilities and stockholders’ equity
Net interest income
Interest spread							3.11	%			3.14	%			3.24	%			3.41	%			3.43	%
Contribution of noninterest bearing sources of funds							.69				.65				.63				.62				.61
Net interest margin							3.80	%			3.79	%			3.87	%			4.03	%			4.04	%

25

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CORPORATE INVESTOR INFORMATION

Corporate Headquarters

     National City Center

Transfer Agent and Registrar

     National City Bank

Investor Information

Jeffrey C. Douglas

	National City Corporation common stock is traded on the New York Stock Exchange under the symbol NCC. The stock is abbreviated in financial publications as NtlCity.

National City’s item processing subsidiary, National Processing, Inc., is traded on the New York Stock Exchange under the symbol NAP. The stock is abbreviated in financial publications as NtlProc.

Dividend Reinvestment and Stock

	Common stockholders participating in the Plan receive a three percent discount from market price when they reinvest their National City dividends in additional shares. Participants may also make optional cash purchases of common stock at a three percent discount from market price and pay no brokerage commissions. To obtain our Plan prospectus and authorization card, call 1-800-622-6757.

Debt Ratings

			Moody’s
			Investors		Standard				Thomson
			Service		& Poor’s		Fitch(b)		BankWatch
National City Corporation									A/B
	Commercial paper (short-term debt)		P-1		A-1		F-1+		TBW1
	Senior debt		A1		A		AA-
	Subordinated debt		A2		A-		A+		A
Bank Subsidiaries:(a)
	Certificates of deposit		Aa3		A+		AA
	Subordinated bank notes		A1		A		A+		A+

(a)	Includes National City Bank, National City Bank of Indiana, National City Bank of Kentucky, National City Bank of Pennsylvania and National City Bank of Michigan/Illinois, except as noted below.
(b)	Fitch ratings for certificates of deposit apply only to the banks in Ohio, Kentucky and Indiana. Fitch subordinated bank note ratings apply only to the Ohio banking subsidiary.

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FORM 10-Q — JUNE 30, 2000

      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 CORPORATION

Date:  August 4, 2000

	/s/ ROBERT G. SIEFERS
	Robert G. Siefers
	Vice Chairman and
	Chief Financial Officer
	(Duly Authorized Signer and
	Principal Financial Officer)

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[NATIONAL CITY CORPORATION LOGO] National City Center 1900 East Ninth Street Cleveland, Ohio 44114-3484		Presort Standard U.S. Postage PAID National City Corporation

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                                  EXHIBIT INDEX

EXHIBIT
NUMBER                            EXHIBIT DESCRIPTION
------                            -------------------

3.1              Restated Certificate of Incorporation of National City
                 Corporation, as amended (filed as Exhibit 3.1 to National City
                 Corporation's Annual Report on Form 10-K for the fiscal year
                 ended December 31, 1997 and incorporated herein by reference).

3.2              Amended and Restated Articles of Incorporation of National City
                 Corporation dated April 13, 1999 (filed as Exhibit 3.2).

3.3              National City Corporation First Restatement of By-laws adopted
                 April 27, 1987 (As Amended through October 24, 1994) (filed as
                 Exhibit 3.2 to Registrant's Form S-4 Registration Statement No.
                 33-56539 dated November 18, 1994 and incorporated herein by
                 reference).

4.1              The Company agrees to furnish upon request to the Commission a
                 copy of each instrument defining the rights of holders of
                 Senior and Subordinated debt of the Company.

4.2              Credit Agreement dated as of February 2, 1996 by and between
                 National City and the banks named therein (filed as Exhibit 4.2
                 to Registrant's Form S-4 Registration Statement No. 333-01697
                 dated March 13, 1996 and incorporated herein by reference).

4.3              Certificate of Stock Designation dated as of February 2, 1998
                 designating National City Corporation's 6% Cumulative
                 Convertible Preferred Stock, Series 1, without par value, and
                 fixing the powers, preferences, rights, qualifications,
                 limitations and restrictions thereof (filed as Appendix D to
                 Registrant's Form S-4 Registration Statement No. 333-45609
                 dated February 19, 1998 and incorporated herein by reference)
                 in addition to those set forth in National City Corporation's
                 Restated Certificate of Incorporation, as amended (filed as
                 Exhibit 3.2).

10.1             National City Savings and Investment Plan, As Amended and
                 Restated Effective July 1, 1992 (filed as Exhibit 10.24 to
                 Registrant's Annual Report on Form 10-K for the fiscal year
                 ended December 31, 1994 and incorporated herein by reference).

10.2             The National City Savings and Investment Plan No. 2 As Amended
                 and Restated Effective January 1, 1992 (filed as Exhibit 10.25
                 to Registrant's Annual Report on Form 10-K for the fiscal year
                 ended December 31, 1994 and incorporated herein by reference).

10.3             National City Corporation's Amended 1984 Stock Option Plan
                 (filed as Exhibit No. 10.2 to National City's Annual Report on
                 Form 10-K for the fiscal year ended December 31, 1987);
                 incorporated herein by reference.

10.4             National City Corporation 1989 Stock Option Plan (filed as
                 Exhibit 10.7 to National City's Annual Report on Form 10-K for
                 the fiscal year ended December 31, 1989, and incorporated
                 herein by reference).

10.5             National City Corporation's 1993 Stock Option Plan (filed as
                 Exhibit 10.5 to Registration Statement No. 33-49823 and
                 incorporated herein by reference).

10.6             National City Corporation 150th Anniversary Stock Option Plan
                 (filed as Exhibit 10.9 to Registrant's Form S-4 Registration
                 Statement No. 33-59487 dated May 19, 1995 and incorporated
                 herein by reference).

10.7             National City Corporation 1997 Stock Option Plan (filed as
                 Exhibit A to National City Corporation's Proxy Statement Form
                 14A Registration No. 000-07229 dated February 19, 1997 and
                 incorporated herein by reference).

10.8             National City Corporation Plan for Deferred Payment of
                 Directors' Fees, As Amended (filed as Exhibit 10.5 to
                 Registration Statement No. 2-914334 and incorporated herein by
                 reference).

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                                 EXHIBIT INDEX

EXHIBIT
NUMBER                           EXHIBIT DESCRIPTION
------                           -------------------

10.9             National City Corporation Supplemental Executive Retirement
                 Plan, As Amended and Restated Effective January 1, 1997 (filed
                 as Exhibit 10.12 to Registrant's Form S-4 Registration
                 Statement No. 333-46571 dated February 19, 1998 and
                 incorporated herein by reference).

10.10            National City Corporation Executive Savings Plan, As Amended
                 and Restated Effective January 1, 1995 (filed as Exhibit 10.9
                 to National City's Annual Report on Form 10-K for the fiscal
                 year ended December 31, 1994, and incorporated herein by
                 reference).

10.11            National City Corporation Amended and Second Restated 1991
                 Restricted Stock Plan (filed as Exhibit 10.9 to Registration
                 Statement No. 33-49823 and incorporated herein by reference).

10.12            National City Corporation 1997 Restricted Stock Plan (filed as
                 Exhibit B to National City Corporation's Proxy Statement Form
                 14A Registration No. 000-07229 dated February 19, 1997 and
                 incorporated herein by reference).

10.13            Form of grant made under National City Corporation 1991
                 Restricted Stock Plan in connection with National City
                 Corporation Supplemental Executive Retirement Plan As Amended
                 (filed as Exhibit 10.10 to National City's Annual Report on
                 Form 10-K for the fiscal year ended December 31, 1992, and
                 incorporated herein by reference).

10.14            Merchants National Corporation Director's Deferred Compensation
                 Plan, As Amended and Restated August 16, 1983 (filed as Exhibit
                 10(3) to Merchants National Corporation's Form S-2 Registration
                 Statement dated June 28, 1985, and incorporated herein by
                 reference).

10.15            Merchants National Corporation Supplemental Pension Plan dated
                 November 20, 1984; First Amendment to the Supplemental Pension
                 Plans dated January 21, 1986; Second Amendment to the
                 Supplemental Pension Plans dated July 3, 1989; and Third
                 Amendment to the Supplemental Pension Plans dated November 21,
                 1990 (filed respectively as Exhibit 10(n) to Merchants National
                 Corporation Annual Report on Form 10-K for the year ended
                 December 21, 1984; as Exhibit 10(q) to the Merchants National
                 Corporation Annual Report on Form 10-K for the year ended
                 December 31, 1985; as Exhibit 10(49) to Merchants National
                 Corporation Annual Report on Form 10-K for the year ended
                 December 31, 1990; and as Exhibit 10(50) to the Merchants
                 National Corporation Annual Report on Form 10-K for the year
                 ended December 31, 1990; all incorporated herein by reference).

10.16            Merchants National Corporation Employee Benefit Trust
                 Agreement, effective July 1, 1987 (filed as Exhibit 10(27) to
                 Merchants National Corporation Annual Report on Form 10-K for
                 the year ended December 31, 1987, and incorporated herein by
                 reference).

10.17            Merchants National Corporation Non-Qualified Stock Option Plan,
                 effective January 20, 1987, and the First Amendment to that
                 Merchants National Non-Qualified Stock Option Plan, effective
                 October 16, 1990 (filed respectively as Exhibit 10(23) to
                 Merchants National Corporation Annual Report on Form 10-K for
                 the year ended December 31, 1986, and as Exhibit 10(55) to
                 Merchants National Corporation Annual Report on Form 10-K for
                 the year ended December 31, 1990, both of which are
                 incorporated herein by reference).

10.18            Merchants National Corporation 1987 Non-Qualified Stock Option
                 Plan, effective November 17, 1987, and the First Amendment to
                 effective October 16, 1990 (filed respectively as Exhibit
                 10(30) to Merchants National Corporation Annual Report on Form
                 10-K for the year ended December 31, 1987, and as Exhibit
                 10(61) to Merchants



                                      -2-

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                                 EXHIBIT INDEX

EXHIBIT
NUMBER                           EXHIBIT DESCRIPTION
------                           -------------------

                 National Corporation Annual Report on Form 10-K for the year
                 ended December 31, 1990, both of which are incorporated herein
                 by reference).

10.19            Merchants National Corporation Directors Non-Qualified Stock
                 Option Plan and the First Amendment to Merchants National
                 Corporation Directors Non-qualified Stock Option Plan effective
                 October 16, 1990 (filed respectively as Exhibit 10(44) to
                 Merchants National Corporation Annual Report on Form 10-K for
                 the year ended December 31, 1988, and as Exhibit 10(68) to
                 Merchants National Corporation Annual Report on Form 10-K for
                 the year ended December 31, 1990, both of which are
                 incorporated herein by reference).

10.20            Central Indiana Bancorp Option Plan effective March 15, 1991
                 (filed as Exhibit 10.26 to Registrant's Annual Report on Form
                 10-K for the fiscal year ended December 31, 1994 and
                 incorporated herein by reference).

10.21            Central Indiana Bancorp 1993 Option Plan effective October 12,
                 1993 (filed as Exhibit 10.27 to Registrant's Annual Report on
                 Form 10-K for the fiscal year ended December 31, 1994 and
                 incorporated herein by reference).

10.22            Forms of contracts with David A. Daberko, Vincent A.
                 DiGirolamo, William E. MacDonald III, Jon L. Gorney, Robert G.
                 Siefers, Robert J. Ondercik, Jeffrey D. Kelly, David L.
                 Zoeller, Thomas A. Richlovsky, James P. Gulick, Gary A. Glaser,
                 Herbert R. Martens, Jr., Thomas W. Golonski, Stephen A. Stitle,
                 James R. Bell III, Paul G. Clark, A. Joseph Parker, and
                 Frederick W. Schantz (filed as Exhibit 10.29 to Registrant's
                 Form S-4 Registration Statement No. 333-46571 dated February
                 19, 1998 and incorporated herein by reference).

10.23            Split Dollar Insurance Agreement effective January 1, 1994
                 between National City Corporation and those individuals listed
                 in Exhibit 10.27 and other key employees filed as exhibit 10.28
                 to Registrant's Annual Report on Form 10-K for the fiscal year
                 ended December 31, 1994 and incorporated herein by reference).

10.24            Restated First of America Bank Corporation 1987 Stock Option
                 Plan (filed as Exhibit 4.4 to Registrant's Post-Effective
                 Amendment No. 2 (on Form S-8) to Form S-4 Registration
                 Statement No. 333-46571), Amended and Restated First of America
                 Bank Corporation Stock Compensation Plan (filed as Exhibit 4.5
                 to Registrant's Post-Effective Amendment No. 2 (on Form S-8) to
                 Form S-4 Registration Statement No. 333-46571) and First of
                 America Bank Corporation Directors Stock Compensation Plan
                 (filed as Exhibit 4.6 to Registrant's Post-Effective Amendment
                 No. 2 (on Form S-8 to Form S-4 Registration Statement No.
                 333-46571) and each herein incorporated by reference.

10.25            Fort Wayne National Corporation 1985 Stock Incentive Plan
                 (filed as Exhibit 4.4 to Registrant's Post-Effective Amendment
                 No. 1 (on Form S-8) to Form S-4 Registration Statement No.
                 333-45609), Fort Wayne National Corporation 1994 Stock
                 Incentive Plan (filed as Exhibit 4.5 to Registrant's
                 Post-Effective Amendment No. 1 (on Form S-8) to Form S-4
                 Registration Statement No. 333-45609) and Fort Wayne National
                 Corporation 1994 Nonemployee Director Stock Incentive Plan
                 (filed as Exhibit 4.6 to Registrant's Post-Effective Amendment
                 No. 1 (on Form S-8 to Form S-4 Registration Statement No.
                 333-45609) and each herein incorporated by reference.

10.26            National City Corporation 1997 Stock Option Plan (filed as
                 Exhibit 4.4 to Registrant's Form S-8 Registration Statement No.
                 333-58923, dated July 10, 1998, and incorporated herein by
                 reference).



                                      -3-

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                                 EXHIBIT INDEX

EXHIBIT
NUMBER                           EXHIBIT DESCRIPTION
------                           -------------------






10.27            National City Corporation 1997 Restricted Stock Plan (filed as
                 Exhibit 4.4 to Registrant's Form S-8 Registration Statement No.
                 333-60411, dated July 31, 1998, and incorporated herein by
                 reference).

10.28            National City Corporation Long-Term Supplemental Incentive
                 Compensation Plan for Executive Officers (filed as Exhibit
                 10.40 to National City Corporation's Annual Report on Form 10-K
                 for the fiscal year ended December 31, 1999 and incorporated
                 herein by reference).

10.29            Integra Financial Corporation Employee Stock Option Plan (filed
                 as Exhibit 4.3 to Registrant's Form S-8 Registration Statement
                 No. 333-01697, dated April 30, 1996 and incorporated herein by
                 reference).

10.30            Integra Financial Corporation Management Incentive Plan (filed
                 as Exhibit 4.4 to Registrant's Form S-8 Registration Statement
                 No. 333-01697, dated April 30, 1996 and incorporated herein by
                 reference).

10.31            Integra Financial Corporation Non-Employee Directors Stock
                 Option Plan (filed as Exhibit 4.5 to Registrant's Form S-8
                 Registration Statement No. 333-01697, dated April 30, 1996 and
                 incorporated herein by reference).

10.32            National City Corporation Amended and Restated Long-Term
                 Incentive Compensation Plan for Senior Officers as Amended and
                 Restated Effective January 1, 2000 (filed as Exhibit A to Proxy
                 Statement Form 14A Registration No. 000-07229 dated March 6,
                 2000 and incorporated herein by reference).

10.33            National City Corporation Management Incentive Plan for Senior
                 Officers effective January 1, 1999 (filed as Exhibit A to Proxy
                 Statement Form 14A Registration No. 33-71403 dated March 5,
                 1999 and incorporated herein by reference).

12.1             Computation of Ratio of Earnings to Fixed Charges (filed as
                 Exhibit 12.1).

27.1             Financial Data Schedule (filed as Exhibit 27.1).





                                      -4-