<PAGE> 1
UNITED STATES
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
JULY 20, 1995
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED)
COMMISSION FILE NUMBER 1-9718
PNC BANK CORP.
(Exact name of registrant as specified in its charter)
PENNSYLVANIA 25-1435979
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
ONE PNC PLAZA
FIFTH AVENUE AND WOOD STREET
PITTSBURGH, PENNSYLVANIA 15265
(Address of principal executive offices)
(Zip Code)
(412) 762-3900
(Registrant's telephone number, including area code)
(Former name or former address, if changed since last report)
<PAGE> 2
ITEM 5. OTHER EVENTS
1995 SECOND QUARTER FINANCIAL RESULTS
On July 20, 1995, PNC Bank Corp. ("Corporation") reported results
of operations for the three months and six months ended June 30,
1995. A copy of the earnings press release issued by the
Corporation is attached as Exhibit 99 and incorporated herein
by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
The exhibit listed on the Exhibit Index on page 4 of this Form 8-K is
filed herewith.
2
<PAGE> 3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PNC BANK CORP.
(registrant)
Date: July 20, 1995 By /s/ ROBERT L. HAUNSCHILD
--------------------------
Robert L. Haunschild
Senior Vice President and
Chief Financial Officer
3
<PAGE> 4
EXHIBIT INDEX
99 A copy of the earnings press release issued by the Corporation on
July 20, 1995, with respect to the results of operations for the three
months and six months ended June 30, 1995, is filed herewith.
4
<PAGE> 1
Exhibit 99
MEDIA:
- ------
Jonathan Williams
(412) 762-4550
INVESTORS:
- ----------
William H. Callihan
(412) 762-8257
PNC BANK CORP. EARNS $137.0 MILLION IN SECOND QUARTER
PITTSBURGH, July 20, 1995 -- PNC Bank Corp. (NYSE: PNC) today reported
1995 second quarter net income of $137.0 million, or $.59 per fully diluted
share, compared with $187.8 million, or $.79 per fully diluted share, a year
ago. Return on average assets and return on average common shareholders' equity
were .89 percent and 12.59 percent, respectively, and the after-tax profit
margin was 22 percent. Earnings for the second quarter of 1995 increased
approximately 9 percent when compared with first quarter net income of $125.7
million or $.54 per share.
Thomas H. O'Brien, chairman and chief executive officer, said "PNC
Bank's results for the quarter are consistent with our expectations and reflect
strategic actions taken to reduce the corporation's historic reliance on
wholesale funding and investment activities. In addition to significantly
increasing our market share in Philadelphia and New Jersey, our recently
announced merger with Midlantic provides us with a unique opportunity to
increase core retail funding and accelerate our balance sheet initiatives."
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<PAGE> 2
PNC Bank Corp. Earns $137.0 Million in Second Quarter -- Page 2
Taxable-equivalent net interest income totaled $370.6 million in the
second quarter of 1995 compared with $501.4 million a year ago. The net
interest margin was 2.58 percent compared with 2.72 percent in the first
quarter of 1995 and 3.58 percent in the second quarter of 1994.
Noninterest income, excluding securities transactions, increased $29.0
million or 12.7 percent to $257.3 million in the second quarter of 1995
compared with the year-earlier period. Investment management and trust income
increased $24.0 million to $97.5 million. The BlackRock acquisition contributed
approximately $18 million of the increase with the remainder attributable to
new business and an increase in the value of managed assets. Discretionary
assets totaled $84.1 billion at June 30, 1995 compared with $53.6 billion at
June 30, 1994. Service charges, fees and commissions decreased $3.2 million to
$89.0 million reflecting the impact of the corporation's credit card alliance
which was effective May 1, 1995.
Mortgage banking income increased 18.8 percent to $50.7 million
compared with $42.7 million in the second quarter of 1994. Gains from
originated mortgage servicing rights totaling $12.1 million in the second
quarter of 1995 more than offset a modest decline in servicing revenue and
lower gains on sales of servicing. During the quarter, the corporation adopted
Statement of Financial Accounting Standard No. 122, "Accounting for Mortgage
Servicing Rights," which provides for the immediate recognition of the value of
originated mortgage servicing rights.
Noninterest expense increased 1.9 percent to $426.4 million for the
second quarter of 1995 compared with the year-earlier period. Excluding
acquisitions, noninterest expense declined 5.5 percent in the comparison,
reflecting the corporation's continued emphasis on developing alternative
lower-cost delivery systems and reducing the cost of traditional banking
operations.
Net income for the first six months of 1995 totaled $262.6 million or
$1.13 per fully diluted share, compared with $393.5 million and $1.65,
respectively, for the first six months of 1994.
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<PAGE> 3
PNC Bank Corp. Earns $137.0 Million in Second Quarter -- Page 3
The corporation's asset quality remained strong during the quarter. The
allowance for credit losses was $961 million at June 30, 1995 and, as a percent
of nonperforming loans, was 312 percent compared with 267 percent at June 30,
1994. Nonperforming assets totaled $446 million at June 30, 1995 compared with
$544 million at June 30, 1994.
The ratio of nonperforming assets to total loans and foreclosed assets
was 1.21 percent at June 30, 1995 compared with 1.55 percent a year ago. Net
charge-offs totaled $20 million in the second quarter of 1995 compared with $29
million in the year-earlier period.
Average assets for the second quarter of 1995 totaled $61.9 billion
compared with $59.6 billion in the second quarter last year. Securities
declined $2.0 billion on average in the comparison reflecting the strategic
initiative to downsize this portfolio. Loan outstandings for the second quarter
of 1995 averaged $36.2 billion. Excluding acquisitions, average loans increased
2.4 percent and 8.1 percent compared with the first quarter of 1995 and the
second quarter of 1994, respectively. Average loans for the current quarter
represented 63.2 percent of average earning assets compared with 58.0 percent a
year ago.
At June 30, 1995, the leverage capital ratio was 6.29 percent, and Tier
I and total risk-based capital ratios are estimated to be 8.1 percent and 11.6
percent, respectively. Common shares outstanding totaled 227.9 million and
233.2 million at June 30, 1995 and December 31, 1994, respectively, reflecting
the impact of the corporation's share repurchase program.
In July 1995 the corporation entered into a definitive merger agreement
with Midlantic Corporation, a regional bank holding company headquartered in
Edison, New Jersey. At June 30, 1995, Midlantic had assets and deposits of
approximately $13.7 billion and $10.9 billion, respectively. Under terms of the
agreement, PNC Bank Corp. will exchange 2.05 shares of its common stock for
each share of Midlantic common stock. The transaction is valued at
approximately $3 billion and will be accounted for as a pooling of interests.
The merger is targeted to be completed by year-end 1995, pending approval by
shareholders of both companies and various regulatory agencies.
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<PAGE> 4
PNC Bank Corp. Earns $137.0 Million in Second Quarter -- Page 4
PNC Bank Corp., headquartered in Pittsburgh, is one of the largest
financial services organizations in the United States. It operates consumer
banking offices across Pennsylvania, Delaware, Ohio, Kentucky and Indiana and
mortgage offices in 30 states. PNC Bank's major businesses include corporate
banking; consumer banking; private banking; mortgage banking; and trust and
mutual fund asset management.
[TABULAR MATERIAL FOLLOWS]
<PAGE> 5
Page 5
PNC BANK CORP. AND SUBSIDIARIES
Consolidated Financial Highlights
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30 June 30
------------------------- ---------------------------
1995 1994 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FINANCIAL PERFORMANCE (Dollars in thousands, except per share data)
Net interest income (taxable-equivalent basis) $370,571 $501,363 $762,739 $1,007,167
Net income 136,988 187,845 262,639 393,534
Fully diluted earnings per common share .59 .79 1.13 1.65
Return on average total assets .89% 1.26% .86% 1.34%
Return on average common shareholders' equity 12.59 17.70 12.16 18.51
Net interest margin 2.58 3.58 2.65 3.63
After-tax profit margin 21.55 25.75 20.76 26.34
Overhead ratio 67.09 57.33 68.29 56.57
SELECTED AVERAGE BALANCES (In millions)
Assets $61,918 $59,625 $61,806 $59,297
Earnings assets 57,220 56,062 57,333 55,625
Loans, net of unearned income 36,191 32,531 35,755 32,278
Securities 19,858 21,859 20,378 21,550
Deposits 33,787 32,252 33,422 31,996
Shareholders' equity 4,369 4,268 4,363 4,299
==================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
June 30 March 31 December 31 June 30
1995 1995 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SELECTED RATIOS
Capital
Leverage 6.29% 6.26% 6.59% 6.99%
Common shareholders' equity to total assets 7.04 7.04 6.82 6.77
Average common shareholders' equity to average total assets 7.03 7.03 7.09 7.22
Asset quality
Net charge-offs to average loans .23 .24 .29 .32
Nonperforming loans to total loans .84 .85 .90 1.11
Nonperforming assets to total loans and foreclosed assets 1.21 1.25 1.25 1.55
Allowance for credit losses to total loans 2.62 2.75 2.83 2.97
Allowance for credit losses to nonperforming loans 311.53 324.94 314.17 267.09
Book value per common share
As reported $19.38 $19.08 $18.76 $18.37
Excluding net unrealized securities losses 19.56 19.36 19.26 19.02
===================================================================================================================================
</TABLE>
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<PAGE> 6
PNC BANK CORP. AND SUBSIDIARIES Page 6
Condensed Consolidated Statement of Income
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30 June 30
-------------------------- ---------------------------
In thousands, except per share data 1995 1994 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INTEREST INCOME
Loans and fees on loans $737,967 $594,011 $1,445,006 $1,166,847
Securities 283,364 316,647 578,787 612,455
Other 21,308 24,336 42,929 50,796
- ------------------------------------------------------------------------------------------------------------------------------------
Total interest income 1,042,639 934,994 2,066,722 1,830,098
INTEREST EXPENSE
Deposits 320,284 217,512 612,618 417,516
Borrowed funds 214,908 110,574 418,867 207,311
Notes and debentures 145,119 113,949 288,935 214,971
- ------------------------------------------------------------------------------------------------------------------------------------
Total interest expense 680,311 442,035 1,320,420 839,798
- ------------------------------------------------------------------------------------------------------------------------------------
Net interest income 362,328 492,959 746,302 990,300
Provision for credit losses 25,030 50,045
- ------------------------------------------------------------------------------------------------------------------------------------
Net interest income less provision for credit losses 362,328 467,929 746,302 940,255
NONINTEREST INCOME
Investment management and trust 97,509 73,494 176,649 146,461
Service charges, fees and commissions 88,984 92,205 180,408 180,041
Mortgage banking 50,670 42,658 95,320 80,363
Net securities gains (losses) 7,782 (85) 9,036 30,307
Other 20,089 19,968 40,734 49,619
- ------------------------------------------------------------------------------------------------------------------------------------
Total noninterest income 265,034 228,240 502,147 486,791
NONINTEREST EXPENSE
Staff expense 204,590 203,972 406,448 410,871
Net occupancy and equipment 67,909 66,860 136,759 132,142
Other 153,904 147,463 320,575 302,128
- ------------------------------------------------------------------------------------------------------------------------------------
Total noninterest expense 426,403 418,295 863,782 845,141
- ------------------------------------------------------------------------------------------------------------------------------------
Income before income taxes 200,959 277,874 384,667 581,905
Applicable income taxes 63,971 90,029 122,028 188,371
- ------------------------------------------------------------------------------------------------------------------------------------
Net income $136,988 $187,845 $262,639 $393,534
====================================================================================================================================
EARNINGS PER COMMON SHARE
Primary $.59 $.79 $1.13 $1.66
Fully diluted .59 .79 1.13 1.65
CASH DIVIDENDS DECLARED PER COMMON SHARE .35 .32 .70 .64
AVERAGE COMMON SHARES OUTSTANDING
Primary 230,178 237,241 231,388 236,974
Fully diluted 231,960 239,086 233,412 238,887
====================================================================================================================================
</TABLE>
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<PAGE> 7
PNC BANK CORP. AND SUBSIDIARIES Page 7
Details of Net Interest Income
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30 June 30
Taxable-equivalent basis ----------------------------- -----------------------------
In thousands 1995 1994 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net interest income before swaps and caps
Interest income $1,065,165 $906,004 $2,109,929 $1,761,162
Loan fees 18,922 16,090 35,492 34,779
Taxable-equivalent adjustment 8,243 8,404 16,437 16,867
- ------------------------------------------------------------------------------------------------------------------------------------
Total interest income 1,092,330 930,498 2,161,858 1,812,808
Interest expense 671,750 468,528 1,308,342 901,699
- ------------------------------------------------------------------------------------------------------------------------------------
Net interest income before swaps and caps 420,580 461,970 853,516 911,109
Effect of swaps and caps on
Interest income (41,448) 12,900 (78,699) 34,157
Interest expense 8,561 (26,493) 12,078 (61,901)
- ------------------------------------------------------------------------------------------------------------------------------------
Total swaps and caps (50,009) 39,393 (90,777) 96,058
- ------------------------------------------------------------------------------------------------------------------------------------
Net interest income $ 370,571 $501,363 $ 762,739 $1,007,167
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Three months ended
Taxable-equivalent basis June 30 March 31 December 31 September 30 June 30
In thousands 1995 1995 1994 1994 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net interest income before swaps and caps
Interest income $1,065,165 $1,044,764 $1,026,612 $ 978,784 $906,004
Loan fees 18,922 16,570 15,011 19,543 16,090
Taxable-equivalanet adjustment 8,243 8,194 8,371 8,285 8,404
- ------------------------------------------------------------------------------------------------------------------------------------
Total interest income 1,092,330 1,069,528 1,049,994 1,006,612 930,498
Interest expense 671,750 636,592 598,060 527,250 468,528
- ------------------------------------------------------------------------------------------------------------------------------------
Net interest income before
swaps and caps 420,580 432,936 451,934 479,362 461,970
Effect of swaps and caps on
Interest income (41,448) (37,251) (17,478) 9,242 12,900
Interest expense 8,561 3,517 1,734 (14,636) (26,493)
- ------------------------------------------------------------------------------------------------------------------------------------
Total swaps and caps (50,009) (40,768) (19,212) 23,878 39,393
- ------------------------------------------------------------------------------------------------------------------------------------
Net interest income $ 370,571 $ 392,168 $ 432,722 $ 503,240 $501,363
====================================================================================================================================
</TABLE>
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<PAGE> 8
PNC BANK CORP. AND SUBSIDIARIES Page 8
Details of Net Interest Margin
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30 June 30
----------------------- ----------------------
Taxable-equivalent basis 1995 1994 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Interest rate spread before swaps and caps
Book-basis yield on earning assets 7.42% 6.48% 7.36% 6.36%
Effect of loan fees .13 .11 .12 .13
Taxable-equivalent adjustment .06 .06 .06 .06
- ------------------------------------------------------------------------------------------------------------------------------------
Taxable-equivalent yield on earning assets 7.61 6.65 7.54 6.55
Rate on interest-bearing liabilities 5.37 3.90 5.25 3.80
- ------------------------------------------------------------------------------------------------------------------------------------
Interest rate spread before swaps and caps 2.24 2.75 2.29 2.75
Effect of
Noninterest-bearing sources .69 .52 .68 .50
Interest rate swaps and caps on
Interest income (.28) .09 (.27) .12
Interest expense .07 (.22) .05 (.26)
- ------------------------------------------------------------------------------------------------------------------------------------
Total swaps and caps (.35) .31 (.32) .38
- ------------------------------------------------------------------------------------------------------------------------------------
Net interest margin 2.58% 3.58% 2.65% 3.63%
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
June 30 March 31 December 31 September 30 June 30
Taxable-equivalent basis 1995 1995 1994 1994 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Interest rate spread before swaps and caps
Book-basis yield on earnings assets 7.42% 7.29% 6.91% 6.69% 6.48%
Effect of loan fees .13 .11 .10 .13 .11
Taxable-equivalanet adjustment .06 .06 .06 .06 .06
- ------------------------------------------------------------------------------------------------------------------------------------
Taxable-equivalent yield on earnings assets 7.61 7.46 7.07 6.88 6.65
Rate on interest-bearing liabilities 5.37 5.13 4.64 4.16 3.90
- ------------------------------------------------------------------------------------------------------------------------------------
Interest rate spread before swaps and caps 2.24 2.33 2.43 2.72 2.75
Effect of
Noninterest-bearing sources .69 .67 .62 .55 .52
Interest rate swaps and caps on
Interest income (.28) (.25) (.12) .06 .09
Interest expense .07 .03 .01 (.12) (.22)
- ------------------------------------------------------------------------------------------------------------------------------------
Total swaps and caps (.35) (.28) (.13) .18 .31
- ------------------------------------------------------------------------------------------------------------------------------------
Net interest margin 2.58% 2.72% 2.92% 3.45% 3.58%
====================================================================================================================================
</TABLE>
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<PAGE> 9
PNC BANK CORP. AND SUBSIDIARIES Page 9
Details of Noninterest Income
<TABLE>
<CAPTION>
NONINTEREST INCOME
Three months ended Six months ended
June 30 June 30
--------------------------------- -------------------------------
In thousands 1995 1994 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment management and trust
Trust $ 62,229 $ 49,406 $113,196 $ 98,805
Mutual funds 32,280 24,088 63,453 47,656
- ------------------------------------------------------------------------------------------------------------------------------------
Total investment management and trust 97,509 73,494 176,649 146,461
Service charges, fees and commissions
Deposit account and corporate services 38,796 42,484 78,338 82,225
Credit card and merchant services 10,094 13,878 24,269 26,797
Brokerage 10,818 8,545 20,061 17,223
Corporate finance 11,545 10,547 22,252 21,227
Other services 17,731 16,751 35,488 32,569
- ------------------------------------------------------------------------------------------------------------------------------------
Total service charges, fees and commissions 88,984 92,205 180,408 180,041
Mortgage banking
Servicing 29,761 30,825 60,884 60,702
Sales of servicing 9,672 11,445 21,930 16,590
Marketing 11,237 388 12,506 3,071
- ------------------------------------------------------------------------------------------------------------------------------------
Total mortgage banking 50,670 42,658 95,320 80,363
Other 20,089 19,968 40,734 49,619
- ------------------------------------------------------------------------------------------------------------------------------------
Total noninterest income before
securities transactions 257,252 228,325 493,111 456,484
Net securities gains (losses) 7,782 (85) 9,036 30,307
- ------------------------------------------------------------------------------------------------------------------------------------
Total $265,034 $228,240 $502,147 $486,791
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Three months ended June 30 March 31 December 31 September 30 June 30
In thousands 1995 1995 1994 1994 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment management and trust
Trust $ 62,229 $ 50,967 $ 47,402 $ 47,853 $ 49,406
Mutual funds 35,280 28,173 25,835 24,501 24,088
- ------------------------------------------------------------------------------------------------------------------------------------
Total investment management and trust 97,509 79,140 73,237 72,354 73,494
Service charges, fees and commissions
Deposit account and corporate services 38,796 39,542 40,064 41,931 42,484
Credit card and merchant services 10,094 14,175 15,500 13,723 13,878
Brokerage 10,818 9,243 9,010 9,306 8,545
Corporate finance 11,545 10,707 11,414 12,075 10,547
Other services 17,731 17,757 19,023 18,059 16,751
- ------------------------------------------------------------------------------------------------------------------------------------
Total service charges, fees
and commissions 88,984 91,424 95,011 95,094 92,205
Mortgage banking
Servicing 29,761 31,123 28,636 32,439 30,825
Sales of servicing 9,672 12,258 9,235 34,747 11,445
Marketing 11,237 1,269 1,403 11,725 388
- ------------------------------------------------------------------------------------------------------------------------------------
Total mortgage banking 50,670 44,650 39,274 78,911 44,658
Other 20,089 20,645 18,253 28,942 19,968
- ------------------------------------------------------------------------------------------------------------------------------------
Total noninterest income before
securities transactions 257,252 235,859 225,775 275,301 228,325
Net securities gains (losses) 7,782 1,254 (121,024) (44,202) (85)
- ------------------------------------------------------------------------------------------------------------------------------------
Total $265,034 $237,113 $104,751 $231,099 $228,240
====================================================================================================================================
</TABLE>
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<PAGE> 10
PNC BANK CORP. AND SUBSIDIARIES Page 10
Details of Noninterest Expense
<TABLE>
<CAPTION>
NONINTEREST EXPENSE
Three months ended Six months ended
June 30 June 30
-------------------------------- ---------------------------------
In thousands 1995 1994 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Compensation $167,100 $164,610 $330,207 $329,402
Employee benefits 37,490 39,362 76,241 81,469
- ------------------------------------------------------------------------------------------------------------------------------------
Total staff expense 204,590 203,972 406,448 410,871
Net occupancy 35,008 34,142 69,712 66,562
Equipment 32,901 32,718 67,047 65,580
Amortization of intangible assets 22,040 18,270 43,186 37,830
Federal deposit insurance 18,273 18,163 36,649 36,339
Taxes other than income 12,348 10,782 24,405 21,878
Other 101,243 100,248 216,335 206,081
- ------------------------------------------------------------------------------------------------------------------------------------
Total $426,403 $418,295 $863,782 $845,141
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Three months ended June 30 March 31 December 31 September 30 June 30
In thousands 1995 1995 1994 1994 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Compensation $167,100 $163,107 $188,507 $168,433 $164,610
Employee benefits 37,490 38,751 28,166 39,695 39,362
- ------------------------------------------------------------------------------------------------------------------------------------
Total staff expense 204,590 201,858 216,673 208,128 203,972
Net occupancy 35,008 34,704 46,606 34,545 34,142
Equipment 32,901 34,146 33,809 33,335 32,718
Amortization of intangible assets 22,040 21,146 22,759 21,648 18,270
Federal deposit insurance 18,273 18,376 19,157 18,406 18,163
Taxes other than income 12,348 12,057 10,816 11,533 10,782
Other 101,243 115,092 138,861 108,318 100,248
- ------------------------------------------------------------------------------------------------------------------------------------
Total $426,403 $437,379 $488,681 $435,913 $418,295
====================================================================================================================================
</TABLE>
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<PAGE> 11
PNC BANK CORP. AND SUBSIDIARIES Page 11
Condensed Consolidated Balance Sheet
<TABLE>
<CAPTION>
June 30 December 31 June 30
In millions, except share data 1995 1994 1994
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Cash and due from banks $2,612 $2,592 $1,989
Short-term investments 502 809 672
Loans held for sale 773 487 804
Securities available for sale 2,447 3,457 7,236
Investment securities, fair value of $16,434 and $16,233
and $15,233 16,658 17,464 15,971
Loans, net of unearned income of $226, $240 and $218 36,690 35,407 34,860
Allowance for credit losses (961) (1,002) (1,036)
- -----------------------------------------------------------------------------------------------------------------------------------
Net loans 35,729 34,405 33,824
Other 4,042 4,931 3,471
- -----------------------------------------------------------------------------------------------------------------------------------
Total assets $62,763 $64,145 $63,967
===================================================================================================================================
LIABILITIES
Deposits
Noninterest-bearing $ 6,660 $6,992 $6,257
Interest-bearing 28,630 28,019 26,692
- -----------------------------------------------------------------------------------------------------------------------------------
Total deposits 35,290 35,011 32,949
Borrowed funds 12,386 11,608 13,402
Notes and debentures 8,995 11,754 11,437
Other 1,656 1,378 1,830
- -----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 58,327 59,751 59,618
- -----------------------------------------------------------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
Realized shareholders' equity 4,477 4,513 4,503
Net unrealized securities losses (41) (119) (154)
- -----------------------------------------------------------------------------------------------------------------------------------
Total shareholders' equity 4,436 4,394 4,349
- -----------------------------------------------------------------------------------------------------------------------------------
Total liabilities and shareholders' equity $62,763 $64,145 $63,967
===================================================================================================================================
COMMON SHAREHOLDERS' EQUITY $4,418 $4,375 $4,329
COMMON SHARES OUTSTANDING 227,915,764 233,248,508 235,660,470
===================================================================================================================================
</TABLE>
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<PAGE> 12
PNC BANK CORP. AND SUBSIDIARIES Page 12
Condensed Consolidated Average Balance Sheet
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30 June 30
------------------------------------ -----------------------------------
In millions 1995 1994 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Interest-earning assets
Short-term investments $620 $855 $695 $860
Securities available for sale 2,967 7,804 3,295 8,991
Investment securities 16,891 14,055 17,083 12,559
Loans, net of unearned income
Commercial 12,479 12,075 12,305 11,714
Real estate project 1,665 1,736 1,642 1,729
Real estate mortgage 11,383 8,981 11,134 9,018
Consumer 9,005 8,617 9,014 8,534
Other 1,659 1,122 1,660 1,283
- ------------------------------------------------------------------------------------------------------------------------------------
Total loans, net of unearned income 36,191 32,531 35,755 32,278
Other interest-earning assets 551 817 505 937
- ------------------------------------------------------------------------------------------------------------------------------------
Total interest-earning assets 57,220 56,062 57,333 55,625
Other 4,698 3,563 4,473 3,672
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets $61,918 $59,625 $61,806 $59,297
====================================================================================================================================
LIABILITIES
Interest-bearing liabilities
Deposits $27,425 $26,128 $27,183 $25,923
Borrowed funds 13,281 10,967 13,302 11,253
Notes and debentures 9,213 11,030 9,475 10,589
- ------------------------------------------------------------------------------------------------------------------------------------
Total interest-bearing liabilities 49,919 48,125 49,960 47,765
Noninterest-bearing deposits 6,362 6,124 6,239 6,073
Other 1,268 1,108 1,244 1,160
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 57,549 55,357 57,443 54,998
- ------------------------------------------------------------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY 4,369 4,268 4,363 4,299
- ----------------------------------------------------------------------------------------------------------------------------------
Total liabilities and shareholders' equity $61,918 $59,625 $61,806 $59,297
====================================================================================================================================
COMMON SHAREHOLDERS' EQUITY $4,351 $4,248 $4,344 $4,279
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Three months ended June 30 March 31 December 31 September 30 June 30
In millions 1995 1995 1994 1994 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Interest-earning assets
Securities available for sale $2,967 $3,626 $5,172 $5,488 $7,804
Investment securities 16,891 17,277 17,751 16,934 14,055
Loans, net of unearned income 36,191 35,315 34,955 34,494 32,531
Other interest-earning assets 1,171 1,230 1,295 1,359 1,672
- ------------------------------------------------------------------------------------------------------------------------------------
Total interest-earning assets 57,220 57,448 59,173 58,275 56,062
Other 4,698 4,245 3,779 3,713 3,563
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets $61,918 $61,693 $62,952 $61,988 $59,625
====================================================================================================================================
LIABILITIES
Interest-bearing liabilities
Deposits $27,425 $26,937 $26,943 $27,657 $26,128
Borrowed funds 13,281 13,328 11,642 11,346 10,967
Notes and debentures 9,213 9,736 12,593 11,358 11,030
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Total interest-bearing liabilities 49,919 50,001 51,178 50,361 48,125
Noninterest-bearing deposits 6,362 6,115 6,466 6,325 6,124
Other 1,268 1,220 922 942 1,108
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Total liabilities 57,549 57,336 58,566 57,628 55,357
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SHAREHOLDERS' EQUITY 4,369 4,357 4,386 4,360 4,268
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Total liabilities and shareholders' equity $61,918 $61,693 $62,952 $61,988 $59,625
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</TABLE>
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<PAGE> 13
PNC BANK CORP. AND SUBSIDIARIES Page 13
Asset Quality Data
<TABLE>
<CAPTION>
ALLOWANCE FOR CREDIT LOSSES
Three months ended Six months ended
June 30 June 30
---------------------------- ----------------------------
In millions 1995 1994 1995 1994
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Beginning balance $981 $980 $1,002 $972
Charge-offs (34) (44) (74) (81)
Recoveries 14 15 32 30
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Net charge-offs (20) (29) (42) (51)
Provision for credit losses 25 50
Acquisitions 60 1 65
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Ending balance $961 $1,036 $961 $1,036
==================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
NONPERFORMING ASSETS
June 30 March 31 December 31 June 30
In millions 1995 1995 1994 1994
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Nonaccrual loans
Commercial $110 $129 $143 $189
Real estate project 95 71 70 73
Real estate mortgage 96 94 97 122
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Total nonaccrual loans 301 294 310 384
Restructured loans 7 8 9 4
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Total nonperforming loans 308 302 319 388
Foreclosed assets
Real estate project 88 89 77 94
Real estate mortgage 29 32 26 34
Other 21 24 24 28
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Total foreclosed assets 138 145 127 156
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Total $446 $447 $446 $544
==================================================================================================================================
</TABLE>
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