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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
January 19, 1994
PNC BANK CORP.
(Exact name of registrant as specified in its charter)
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PENNSYLVANIA 1-9718 25-1435979
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
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ONE PNC PLAZA
FIFTH AVENUE AND WOOD STREET
PITTSBURGH, PENNSYLVANIA 15265
(Address of principal executive offices) (Zip Code)
(412) 762-2666
(Registrant's telephone number, including area code)
(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
1993 Financial Results
On January 19, 1994, PNC Bank Corp. ("Corporation") reported results of
operations for the three months and twelve months ended December 31, 1993.
Excerpts from the earnings press release issued by the Corporation are attached
as Exhibit 28.1 and incorporated herein by reference.
United Federal Bancorp, Inc. ("United") Acquisition
On January 21, 1994, the Corporation completed the previously reported
acquisition of United and merged United's subsidiary, United Federal Savings
Bank, into PNC Bank, National Association, a wholly-owned subsidiary of the
Corporation. Additional information regarding the transaction is included in
the press release attached as Exhibit 28.2 and incorporated herein by
reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
The exhibits listed on the Exhibit Index on page 4 of this Form 8-K are
filed herewith.
2
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SIGNATURE
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.
PNC BANK CORP.
(Registrant)
Date: January 26, 1994 /s/ Robert L. Haunschild
By __________________________
Robert L. Haunschild
Senior Vice President,
Planning/Finance
3
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EXHIBIT INDEX
28.1 Excerpts from the earnings press release issued by the Corporation on
January 19, 1994, with respect to earnings for the three months and
twelve months ended December 31, 1993, filed herewith.
28.2 Press release issued by the Corporation on January 21, 1994, with
respect to the consummation of the United acquisition, filed herewith.
4
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EXHIBIT 28.1
PNC BANK CORP. AND SUBSIDIARIES
Financial Highlights Page 4
(In thousands, except ratios and per share data)
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Three Months Ended Twelve Months Ended
December 31 December 31
-------------------- --------------------
1993 1992 1993 1992
.......................................................................................................
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FINANCIAL PERFORMANCE
Net interest income (taxable-equivalent basis) $470,955 $464,039 $1,868,535 $1,700,065
Income before cumulative effect of
changes in accounting principles 171,434 143,542 745,263 529,440
Net income 171,434 143,542 725,870 426,939
Earnings per common share
Before cumulative effect of changes in accounting
principles
Primary .72 .61 3.14 2.36
Fully diluted .72 .61 3.13 2.34
Net income
Primary .72 .61 3.06 1.90
Fully diluted .72 .61 3.04 1.89
Cash dividends declared per common share .32 .285 1.175 1.08
Average common shares outstanding
Primary 236,427 233,905 236,386 224,023
Fully diluted 238,360 236,504 238,421 227,125
Net interest margin 3.77 % 4.07 % 3.95 % 4.03 %
Returns before cumulative effect of changes in
accounting principles
Return on average total assets 1.28 1.18 1.48 1.18
Return on average common shareholders' equity 16.52 15.74 18.89 15.03
Returns based on net income
Return on average total assets 1.28 1.18 1.44 .95
Return on average common shareholders' equity 16.52 15.74 18.40 12.47
Average shareholders' equity to average total assets 7.79 7.52 7.86 7.68
Net charge-offs to average loans .60 1.23 .66 1.15
Provision for credit losses to net charge-offs 92.12 81.18 118.57 115.11
Overhead ratio 55.46 58.62 51.66 55.76
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December 31 September 30 December 31
1993 1993 1992
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PERIOD-END RATIOS
Capital
Leverage 7.85 % 8.10 % 7.62 %
Common shareholders' equity to total assets 6.93 7.84 7.23
Asset quality
Nonperforming loans to total loans 1.15 1.53 2.14
Nonperforming assets to total loans and foreclosed assets 1.65 2.25 3.14
Nonperforming assets to total assets .89 1.19 1.60
Allowance for credit losses to total loans 2.92 3.43 3.47
Allowance for credit losses to nonperforming loans 253.12 223.87 162.08
BOOK VALUE PER COMMON SHARE $18.34 $17.50 $15.96
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PNC BANK CORP. AND SUBSIDIARIES
Consolidated Condensed Statement of Income Page 5
(In thousands)
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Three Months Ended Twelve Months Ended
December 31 December 31
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1993 1992 1993 1992
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INTEREST INCOME
Loans and fees on loans $517,005 $486,077 $1,950,937 $1,964,248
Securities 279,858 324,965 1,203,151 1,203,643
Other 18,338 10,858 47,032 51,080
................................................................................................
Total interest income 815,201 821,900 3,201,120 3,218,971
................................................................................................
INTEREST EXPENSE
Deposits 180,564 220,413 742,772 1,063,422
Borrowed funds 118,427 127,089 473,116 417,336
Notes and debentures 54,496 20,233 156,199 80,921
................................................................................................
Total interest expense 353,487 367,735 1,372,087 1,561,679
................................................................................................
Net interest income 461,714 454,165 1,829,033 1,657,292
Provision for credit losses 38,692 63,060 203,944 323,531
................................................................................................
Net interest income less provision for
credit losses 423,022 391,105 1,625,089 1,333,761
................................................................................................
NONINTEREST INCOME
Investment management and trust 70,269 63,656 273,849 260,113
Service charges, fees and commissions 117,195 94,818 403,013 360,559
Trading account profits (losses) (663) 579 6,785 1,717
Net securities gains 3,404 49,187 187,694 193,503
Other 16,125 14,716 73,908 70,884
................................................................................................
Total noninterest income 206,330 222,956 945,249 886,776
................................................................................................
NONINTEREST EXPENSES
Compensation and benefits 173,379 176,626 685,388 668,403
Net occupancy and equipment 60,486 51,239 229,308 206,560
Other 141,784 174,820 539,030 567,452
................................................................................................
Total noninterest expenses 375,649 402,685 1,453,726 1,442,415
................................................................................................
Income before income taxes and cumulative
effect of changes in accounting principles 253,703 211,376 1,116,612 778,122
Applicable income taxes 82,269 67,834 371,349 248,682
................................................................................................
Income before cumulative effect of
changes in accounting principles 171,434 143,542 745,263 529,440
Cumulative effect of changes in accounting
principles, net of tax benefits of $5,343 and $52,804 (19,393) (102,501)
................................................................................................
Net income $171,434 $143,542 $725,870 $426,939
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PNC BANK CORP. AND SUBSIDIARIES
Consolidated Condensed Balance Sheet Page 6
(Dollars in millions)
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December 31 December 31
1993 1992
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ASSETS
Cash and due from banks $1,817 $2,117
Short-term investments 856 1,165
Loans held for sale 1,392 220
Securities available for sale 11,388 7,414
Investment securities, market value of $11,716 and $13,430 11,672 13,327
Loans, net of unearned income 33,308 25,817
Allowance for credit losses (972) (897)
.......................................................................................
Net loans 32,336 24,920
.......................................................................................
Other 2,619 2,217
.......................................................................................
Total assets $62,080 $51,380
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LIABILITIES
Deposits
Noninterest-bearing $7,057 $5,890
Interest-bearing 26,058 23,580
.......................................................................................
Total deposits 33,115 29,470
.......................................................................................
Borrowed funds 16,062 14,736
Notes and debentures 5,185 1,372
Other 3,393 2,056
.......................................................................................
Total liabilities 57,755 47,634
.......................................................................................
SHAREHOLDERS' EQUITY 4,325 3,746
.......................................................................................
Total liabilities and shareholders' equity $62,080 $51,380
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COMMON SHAREHOLDERS' EQUITY $4,305 $3,713
COMMON SHARES OUTSTANDING 234,705,237 232,573,253
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Effective December 31, 1993, PNC Bank Corp. adopted Statement of Financial
Accounting Standards No. 115 related to accounting for and reporting of
securities. As a result, shareholders' equity at December 31, 1993
includes $88 million of after-tax unrealized net securities gains.
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PNC BANK CORP. AND SUBSIDIARIES
Statistical Information Page 7
AVERAGE BALANCE SHEET
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Three Months Ended Twelve Months Ended
December 31 December 31
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In millions 1993 1992 1993 1992
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ASSETS
Loans, net of unearned income
Commercial $11,096 $10,405 $10,877 $10,432
Real estate project 1,770 1,976 1,845 2,001
Real estate mortgage 5,813 3,946 4,390 3,621
Consumer 8,279 7,799 7,974 7,531
Other 925 922 873 935
....................................................................................
Total loans 27,883 25,048 25,959 24,520
....................................................................................
Securities 20,430 19,595 20,403 16,653
Other earning assets 1,527 1,017 978 1,019
....................................................................................
Total earning assets 49,840 45,660 47,340 42,192
....................................................................................
Other 3,170 2,776 2,981 2,552
....................................................................................
Total assets $53,010 $48,436 $50,321 $44,744
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LIABILITIES
Deposits
Interest-bearing $23,981 $23,326 $23,072 $23,696
Noninterest-bearing 5,781 5,230 5,370 4,780
....................................................................................
Total deposits 29,762 28,556 28,442 28,476
....................................................................................
Borrowed funds 13,010 13,901 13,405 10,674
Notes and debentures 4,991 1,377 3,454 1,341
Other 1,119 958 1,063 817
....................................................................................
Total liabilities 48,882 44,792 46,364 41,308
....................................................................................
SHAREHOLDERS' EQUITY 4,128 3,644 3,957 3,436
....................................................................................
Total liabilities and shareholders $53,010 $48,436 $50,321 $44,744
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COMMON SHAREHOLDERS' EQUITY $4,107 $3,610 $3,935 $3,401
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PNC BANK CORP. AND SUBSIDIARIES
Statistical Information (continued) Page 8
NONPERFORMING ASSETS
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December 31 September 30 December 31
In millions 1993 1993 1992
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NONACCRUAL LOANS
Commercial $181 $219 $316
Real estate 175 193 213
..........................................................................................
Total nonaccrual loans 356 412 529
..........................................................................................
RESTRUCTURED LOANS
Commercial 6 6 11
Real estate 22 2 14
..........................................................................................
Total restructured loans 28 8 25
..........................................................................................
Total nonperforming loans 384 420 554
..........................................................................................
FORECLOSED ASSETS
Commercial 20 34 36
Real estate 150 167 230
..........................................................................................
Total foreclosed assets 170 201 266
..........................................................................................
Total nonperforming assets $554 $621 $820
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ALLOWANCE FOR CREDIT LOSSES
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Three Months Ended Twelve Months Ended
December 31 December 31
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In millions 1993 1992 1993 1992
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Beginning balance $940 $870 $897 $797
...........................................................................................
Charge-offs (63) (95) (246) (343)
Recoveries 21 17 74 62
...........................................................................................
Net charge-offs (42) (78) (172) (281)
...........................................................................................
Provision for credit losses 39 63 204 324
Acquisitions 35 42 43 57
...........................................................................................
Ending balance $972 $897 $972 $897
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EXHIBIT 28.2
CONTACTS:
MEDIA:
Jonathan Williams
(412) 762-4550 (o)
(412) 257-3257 (h)
INVESTORS:
William H. Callihan
(412) 762-8257
PNC BANK COMPLETES ACQUISITION OF UNITED FEDERAL BANCORP, INC.
PITTSBURGH, Jan. 21, 1994--PNC Bank Corp. (NYSE: PNC) announced that
its acquisition of United Federal Bancorp, Inc. (NASDAQ: UFBK), headquartered
in State College, Pa., will be completed at the close of business today. Under
terms of the transaction, United Federal shareholders will receive $32.50 cash
per share.
United Federal has 18 branch offices in seven central Pennsylvania
counties and brings approximately $900 million in new assets to PNC Bank.
The core of United Federal Savings Bank's branches will form a new
market for PNC Bank known as PNC Bank, Central PA. It will be headed by
Charles C. Pearson Jr., formerly president and chief executive officer of
United Federal.
"This acquisition allows us to become a market leader in
fast-growing central Pennsylvania where PNC Bank previously had no presence,"
said Thomas H. O'Brien, chairman and chief executive officer of PNC Bank.
Pearson said, "Our customers will continue to be served at all of
our branches by the same helpful personnel as before, but, as a part of PNC
Bank, we can now offer our customers a wider array of services and products."
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PNC Bank Completes Acquisition of United Federal Bancorp, Inc. -- Page 2
Pearson pointed to Investment Management and Trust services,
expanded Corporate Banking services, and an array of retail, corporate and
public finance services available through PNC Securities Corp. as examples of
financial services previously unavailable through United Federal.
Pearson said customers can continue to use their existing supply of
checks and other materials and will be notified in advance of any future
changes that may affect their accounts. In the near future, United Federal
customers will be able to perform banking transactions in any of PNC Bank's
Pennsylvania branches.
PNC Bank Corp., headquartered in Pittsburgh, is one of the largest
banking organizations in the United States. It operates more than 550
community banking offices throughout Pennsylvania, Delaware, Ohio, Kentucky and
Indiana. PNC Bank's major lines of business include retail banking; corporate
banking; investment management and trust; and investment banking.
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