<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
(AMENDMENT NO. 1)
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
JULY 10, 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
This Form 8-K/A amends PNC Bank Corp.'s ("Corporation") Form 8-K
dated as of July 10, 1995 and filed on July 13, 1995 ("Form 8-K") pursuant to
which the Corporation announced the execution of the Agreement and Plan of
Reorganization and related matters with Midlantic Corporation ("Midlantic").
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements
Audited consolidated financial statements of Midlantic as of
December 31, 1994 and 1993, and for each of the three years in the
period ended December 31, 1994, and the independent auditors' report
thereon, included on pages 42 - 70 of Midlantic's 1994 Annual Report to
Shareholders and incorporated by reference in Midlantic's Annual Report
on Form 10-K for the year ended December 31, 1994 (File No. 0-15870)
("Midlantic Form 10-K") are incorporated herein by reference to
such Midlantic Form 10-K.
Unaudited consolidated financial statements of Midlantic as of
March 31, 1995 and for the three months ended March 31, 1995 and 1994
included on pages 3 to 11 of Midlantic's Quarterly Report on Form
10-Q for the quarterly period ended March 31, 1995 (File No. 0-15870)
("Midlantic Form 10-Q") are incorporated herein by reference to such
Midlantic Form 10-Q.
(b) Pro Forma Financial Information
Pro forma consolidated financial information giving effect to
the proposed merger of Midlantic with and into a wholly-owned
subsidiary of the Corporation is attached hereto as Exhibit 99.4
and incorporated herein by reference.
(c) Exhibits
The exhibits listed below are filed herewith or incorporated
herein by reference:
2 Agreement and Plan of Reorganization dated as of July 10,
1995, by and among Midlantic, the Corporation and PNC Bancorp, Inc.,
including Agreement and Plan of Merger (Annex A) incorporated herein
by reference to Exhibit 2 of the Form 8-K.*
23 Consent of Coopers & Lybrand L.L.P., independent auditors
for Midlantic, filed herewith.
99.1 Press Release dated July 10, 1995 incorporated herein by reference
to Exhibit 99.1 of the Form 8-K.
99.2 Midlantic Stock Option Agreement dated as of July 10, 1995, by and
between Midlantic and the Corporation incorporated herein by
reference to Exhibit 99.2 of the Form 8-K.
99.3 PNC Stock Option Agreement dated as of July 10, 1995, by and between
Midlantic and the Corporation incorporated herein by reference to
Exhibit 99.3 of the Form 8-K.
99.4 Pro forma financial information filed herewith.
[FN]
* The exhibits of the agreements have been omitted.
They are (a) Exhibit 4.9(a) - form of Midlantic affiliate
letter, (b) Exhibit 4.9(b) - form of Corporation
affiliate letter, (c) Exhibit 5.2(f) - form
of opinion of Corporation counsel, and (d)
Exhibit 5.3(g) - form of opinion of
Midlantic counsel. The Corporation agrees
to furnish supplementally a copy of any
omitted exhibit to the Commission upon request.
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 17, 1995 By /s/Robert L. Haunschild
--------------------------
Robert L. Haunschild
Senior Vice President and
Chief Financial Officer
3
<PAGE> 4
EXHIBIT INDEX
23 Consent of Coopers & Lybrand L.L.P., independent auditors for
Midlantic, filed herewith.
99.4 Pro forma consolidated financial information, filed herewith.
4
<PAGE> 1
EXHIBIT 23
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference, in the Registration Statements
listed below, of our report dated January 18, 1995 (January 20, 1995 as to Note
28), with respect to the consolidated financial statements of Midlantic
Corporation and Subsidiaries ("Midlantic") incorporated by reference in this
Form 8-K from Midlantic's 1994 Form 10-K as filed with the Securities and
Exchange Commission.
Form S-3 relating to the shelf registration of $1 billion of debt securities of
PNC Funding Corp, unconditionally guaranteed by PNC Bank Corp., and/or
preferred stock of PNC Bank Corp. (File No. 33-55114)
Form S-3 relating to the Dividend Reinvestment and Stock Purchase Plan of PNC
Bank Corp. (File No. 33-52844)
Form S-3 relating to the shelf registration of six million shares of PNC Bank
Corp. preferred stock (File No. 33-40602)
Post-Effective Amendment No. 1 on Form S-3 relating to the shelf registration
of $500 million of debt securities of PNC Funding Corp, unconditionally
guaranteed by PNC Bank Corp. (File No. 33-42803)
Form S-8 relating to the PNC Bank Corp. 1992 Long-Term Incentive Award Plan
(File No. 33-54960)
Form S-8 relating to the 1987 Senior Executive Long-Term Award Plan of PNC Bank
Corp.(now known as the PNC Bank Corp. 1992 Long-Term Incentive Award Plan)
(File No. 33-28828)
Post-Effective Amendment No. 2 on Form S-8 relating to the Employee Stock
Purchase Plan of PNC Bank Corp. (File No. 2-83150)
Post Effective Amendment No. 1 on Form S-8 relating to the Stock Option Plan of
PNC Bank Corp. (File No. 2-92181)
Form S-8 relating to the PNC Bank Corp. Incentive Savings Plan (File No.
33-25140)
Post-Effective Amendment No. 1 (on Form S-3) to Form S-4 relating to the
conversion of outstanding debentures assumed in connection with the merger of
PNC Bank Corp., Kentucky, Inc., with and into a wholly-owned subsidiary of PNC
Bank Corp. (File No. 33-10016)
5
<PAGE> 2
Post-Effective Amendment No. 2 (on Form S-8) to Form S-4 relating to the
exercise of stock options assumed by PNC Bank Corp. in connection with the
merger of PNC Bank Corp., Kentucky, Inc., with and into a wholly-owned
subsidiary of PNC Bank Corp. (File No. 33-10016)
Post-Effective Amendment No. 1 (on Form S-8) to Form S-4 relating to the
exercise of stock options assumed by PNC Bank Corp. in connection with the
merger of a wholly-owned subsidiary of PNC Bank Corp. with and into Bank of
Delaware Corporation (File No. 33-25642)
/s/ COOPERS & LYBRAND L.L.P.
----------------------------
New York, New York
July 17, 1995
6
<PAGE> 1
Exhibit 99.4
PRO FORMA CONSOLIDATED FINANCIAL INFORMATION
PNC Bank Corp. ("Corporation") has entered into a definitive agreement to merge
Midlantic Corporation ("Midlantic") with and into a wholly-owned subsidiary of
the Corporation. The transaction is expected to close by the year-end 1995,
pending shareholder and regulatory approvals.
The pro forma financial information on the following pages is unaudited and
presents (i) the historical consolidated balance sheets of the Corporation and
Midlantic at March 31, 1995, and (ii) the historical consolidated statements of
income of the Corporation and Midlantic for the three months ended March 31,
1995 and 1994, and for each of the three years in the period ended December 31,
1994, assuming the companies had been combined for each period presented on a
pooling of interests accounting basis. Certain financial statement
reclassifications have been made for purposes of presenting the pro forma
consolidated financial information. Intercompany transactions between the
Corporation and Midlantic were not material.
The pro forma financial information includes only those actions to be
completed on or prior to the closing date and excludes (i) balance sheet
changes, if any, that may occur after the closing date; (ii) expenses and
nonrecurring charges related to the merger; and (iii) the estimated effect of
revenue enhancements and expense savings to be initiated as part of the
consolidation of the operations of the Corporation and Midlantic.
The pro forma consolidated financial information is intended for
informational purposes and may not be indicative of the financial position or
results of operations that actually would have occurred, or will be attained in
the future, had the merger been completed on the dates indicated. The pro forma
consolidated financial information should be read in conjunction with the 1994
Annual Reports on Form 10-K and the Quarterly Reports on Form 10-Q for the
quarterly period ended March 31, 1995 of the Corporation and Midlantic.
7
<PAGE> 2
PNC BANK CORP.
Pro Forma Consolidated Balance Sheet (Unaudited)
March 31, 1995
<TABLE>
<CAPTION>
PNC MIDLANTIC PRO FORMA
In millions BANK CORP. CORPORATION ADJUSTMENTS PRO FORMA
___________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
ASSETS
Cash and due from banks $ 2,699 $ 791 $ 17 $ 3,507
Short-term investments 533 965 1,498
Loans held for sale 437 437
Securities available for sale 3,137 778 3,915
Investment securities 17,070 2,502 19,572
Loans, net of unearned income 35,724 8,223 43,947
Allowance for credit losses (981) (337) (1,318)
-----------------------------------------------------------
Net loans 34,743 7,886 42,629
Other 3,475 712 29 4,216
--------------------------------------------------------------
Total assets $ 62,094 $ 13,634 $46 $ 75,774
==============================================================
LIABILITIES
Deposits
Noninterest-bearing $ 6,578 $ 2,599 $ 9,177
Interest-bearing 26,363 8,058 34,421
--------------------------------------------------------------
Total deposits 32,941 10,657 43,598
Borrowed funds
Federal funds purchased 2,928 60 2,988
Repurchase agreements 7,059 922 7,981
Commercial paper 825 825
Other 2,968 27 2,995
--------------------------------------------------------------
Total borrowed funds 13,780 1,009 14,789
Notes and debentures 9,599 373 9,972
Accrued expenses and other liabilities 1,384 186 1,570
--------------------------------------------------------------
Total liabilities 57,704 12,225 69,929
--------------------------------------------------------------
SHAREHOLDERS' EQUITY
Preferred stock 1 50 51
Common stock 1,181 158 $ (158) 1,741
560
Capital surplus 463 613 (613) 712
249
Retained earnings 3,062 599 3,661
Deferred ESOP benefit expense (83) (83)
Net unrealized securities losses (65) (3) (68)
Common stock held in treasury at cost (169) (8) 8 (169)
--------------------------------------------------------------
Total shareholders' equity 4,390 1,409 46 5,845
--------------------------------------------------------------
Total liabilities and shareholders' equity $ 62,094 $ 13,634 $46 $ 75,774
________________________________________________________________________________________________________________
</TABLE>
See accompanying Notes to Pro Forma Consolidated Financial Information.
8
<PAGE> 3
PNC BANK CORP.
Pro Forma Consolidated Statement of Income (Unaudited)
Three months ended March 31, 1995
<TABLE>
<CAPTION>
PNC MIDLANTIC PRO FORMA
In thousands, except per share data BANK CORP. CORPORATION ADJUSTMENTS PRO FORMA
_____________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
INTEREST INCOME
Loans and fees on loans $ 707,039 $ 174,500 $881,539
Securities 295,423 50,082 345,505
Other 21,621 12,612 34,233
--------------------------------------------------------------
Total interest income 1,024,083 237,194 1,261,277
INTEREST EXPENSE
Deposits 292,334 65,387 357,721
Borrowed funds 204,121 7,914 212,035
Notes and debentures 143,654 8,587 152,241
--------------------------------------------------------------
Total interest expense 640,109 81,888 721,997
--------------------------------------------------------------
Net interest income 383,974 155,306 539,280
Provision for credit losses 1,500 1,500
--------------------------------------------------------------
Net interest income less provision for
credit losses 383,974 153,806 537,780
NONINTEREST INCOME
Investment management and trust 79,140 11,228 90,368
Service charges, fees and commissions 91,424 18,845 110,269
Mortgage banking 44,650 44,650
Net securities gains 1,254 1,254
Other 20,645 18,371 39,016
--------------------------------------------------------------
Total noninterest income 237,113 48,444 285,557
NONINTEREST EXPENSE
Staff expense 201,858 62,423 264,281
Net occupancy and equipment 68,850 17,884 86,734
Amortization of intangibles 21,146 2,189 23,335
Federal deposit insurance 18,376 5,944 24,320
Other 127,149 28,412 155,561
--------------------------------------------------------------
Total noninterest expense 437,379 116,852 554,231
--------------------------------------------------------------
Income before income taxes 183,708 85,398 269,106
Applicable income taxes 58,057 32,074 90,131
--------------------------------------------------------------
Net income $ 125,651 $ 53,324 $178,975
_____________________________________________________________________________________________________________
EARNINGS PER COMMON SHARE
Primary $ .54 $ .98 $ .52
Fully diluted .54 .97 .52
AVERAGE COMMON SHARES OUTSTANDING
Primary 232,589 53,244 341,739
Fully diluted 234,463 54,900 347,008
_____________________________________________________________________________________________________________
</TABLE>
See accompanying Notes to Pro Forma Consolidated Financial Information.
9
<PAGE> 4
PNC BANK CORP.
Pro Forma Consolidated Statement of Income (Unaudited)
Three months ended March 31, 1994
<TABLE>
<CAPTION>
PNC MIDLANTIC PRO FORMA
In thousands, except per share data BANK CORP. CORPORATION ADJUSTMENTS PRO FORMA
________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
INTEREST INCOME
Loans and fees on loans $ 572,836 $ 162,482 $ 735,318
Securities 295,808 27,705 323,513
Other 26,460 14,761 41,221
---------------------------------------------------------
Total interest income 895,104 204,948 1,100,052
INTEREST EXPENSE
Deposits 200,004 53,748 253,752
Borrowed funds 96,737 5,243 101,980
Notes and debentures 101,022 8,660 109,682
---------------------------------------------------------
Total interest expense 397,763 67,651 465,414
---------------------------------------------------------
Net interest income 497,341 137,297 634,638
Provision for credit losses 25,015 8,156 33,171
---------------------------------------------------------
Net interest income less provision for
credit losses 472,326 129,141 601,467
NONINTEREST INCOME
Investment management and trust 72,967 9,782 82,749
Service charges, fees and commissions 87,902 18,946 106,848
Mortgage banking 37,892 37,892
Net securities gains 30,392 1,263 31,655
Other 29,398 17,338 46,736
---------------------------------------------------------
Total noninterest income 258,551 47,329 305,880
NONINTEREST EXPENSE
Staff expense 206,899 56,214 263,113
Net occupancy and equipment 65,282 19,160 84,442
Amortization of intangibles 19,560 1,605 21,165
Federal deposit insurance 18,176 7,194 25,370
Other 116,929 36,676 153,605
---------------------------------------------------------
Total noninterest expense 426,846 120,849 547,695
---------------------------------------------------------
Income before income taxes and
cumulative effect of change in
accounting principle 304,031 55,621 359,652
Applicable income taxes 98,342 2,268 100,610
---------------------------------------------------------
Income before cumulative effect of
change in accounting principle 205,689 53,353 259,042
Cumulative effect of change in
accounting principle (7,528) (7,528)
---------------------------------------------------------
Net income $ 205,689 $ 45,825 $ 251,514
________________________________________________________________________________________________________
EARNINGS PER COMMON SHARE
Primary before cumulative effect of
change in accounting principle $ .87 $ .99 $ .75
Cumulative effect of change in
accounting principle (.14) (.02)
--------------------------------------------------------
Primary $ .87 $ .85 $ .73
--------------------------------------------------------
Fully diluted before cumulative effect
of change in accounting principle $ .86 $ .98 $ .74
Cumulative effect of change in
accounting principle (.14) (.02)
--------------------------------------------------------
Fully diluted $ .86 $ .84 $ .72
---------------------------------------------------------
AVERAGE COMMON SHARES OUTSTANDING
Primary 236,698 52,821 344,981
Fully diluted 238,592 54,403 350,118
________________________________________________________________________________________________________
</TABLE>
See accompanying Notes to Pro Forma Consolidated Financial Information.
10
<PAGE> 5
PNC BANK CORP.
Pro Forma Consolidated Statement of Income (Unaudited)
Year ended December 31, 1994
<TABLE>
<CAPTION>
PNC MIDLANTIC PRO FORMA
In thousands, except per share data BANK CORP. CORPORATION ADJUSTMENTS PRO FORMA
____________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
INTEREST INCOME
Loans and fees on loans $2,479,093 $ 676,741 $3,155,834
Securities 1,290,998 116,887 1,407,885
Other 91,721 69,856 161,577
----------------------------------------------------------------
Total interest income 3,861,812 863,484 4,725,296
INTEREST EXPENSE
Deposits 935,876 223,366 1,159,242
Borrowed funds 499,252 21,128 520,380
Notes and debentures 517,078 34,453 551,531
----------------------------------------------------------------
Total interest expense 1,952,206 278,947 2,231,153
----------------------------------------------------------------
Net interest income 1,909,606 584,537 2,494,143
Provision for credit losses 60,123 23,335 83,458
----------------------------------------------------------------
Net interest income less provision for
credit losses 1,849,483 561,202 2,410,685
NONINTEREST INCOME
Investment management and trust 292,052 43,263 335,315
Service charges, fees and commissions 370,146 77,337 447,483
Mortgage banking 198,548 198,548
Net securities losses (134,919) (6,663) (141,582)
Other 96,814 100,273 197,087
----------------------------------------------------------------
Total noninterest income 822,641 214,210 1,036,851
NONINTEREST EXPENSE
Staff expense 835,672 226,676 1,062,348
Net occupancy and equipment 280,437 67,896 348,333
Amortization of intangibles 82,237 6,460 88,697
Federal deposit insurance 73,902 28,407 102,309
Other 497,487 141,968 639,455
----------------------------------------------------------------
Total noninterest expense 1,769,735 471,407 2,241,142
----------------------------------------------------------------
Income before income taxes and
cumulative effect of change in
accounting principle 902,389 304,005 1,206,394
Applicable income taxes 292,327 24,900 317,227
----------------------------------------------------------------
Income before cumulative effect of
change in accounting principle 610,062 279,105 889,167
Cumulative effect of change in
accounting principle (7,528) (7,528)
----------------------------------------------------------------
Net income $ 610,062 $ 271,577 $ 881,639
___________________________________________________________________________________________________________
EARNINGS PER COMMON SHARE
Primary before cumulative effect of
change in accounting principle $ 2.57 $ 5.18 $ 2.56
Cumulative effect of change in
accounting principle (.14) (.02)
----------------------------------------------------------------
Primary $ 2.57 $ 5.04 $ 2.54
----------------------------------------------------------------
Fully diluted before cumulative effect
of change in accounting principle $ 2.56 $ 5.11 $ 2.54
Cumulative effect of change in
accounting principle (.14) (.02)
----------------------------------------------------------------
Fully diluted $ 2.56 $ 4.97 $ 2.52
----------------------------------------------------------------
AVERAGE COMMON SHARES OUTSTANDING
Primary 236,610 52,978 345,215
Fully diluted 238,448 54,522 350,218
__________________________________________________________________________________________________________
<FN>
See accompanying Notes to Pro Forma Consolidated Financial Information.
</TABLE>
11
<PAGE> 6
PNC BANK CORP.
Pro Forma Consolidated Statement of Income (Unaudited)
Year ended December 31, 1993
<TABLE>
<CAPTION>
PNC MIDLANTIC PRO FORMA
In thousands, except per share data BANK CORP. CORPORATION ADJUSTMENTS PRO FORMA
_____________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
INTEREST INCOME
Loans and fees on loans $1,950,937 $ 663,410 $2,614,347
Securities 1,203,151 92,048 1,295,199
Other 47,032 70,089 117,121
--------------------------------------------------------------
Total interest income 3,201,120 825,547 4,026,667
INTEREST EXPENSE
Deposits 742,772 262,886 1,005,658
Borrowed funds 362,995 11,586 374,581
Notes and debentures 266,320 36,385 302,705
--------------------------------------------------------------
Total interest expense 1,372,087 310,857 1,682,944
--------------------------------------------------------------
Net interest income 1,829,033 514,690 2,343,723
Provision for credit losses 203,944 146,305 350,249
--------------------------------------------------------------
Net interest income less provision for
credit losses 1,625,089 368,385 1,993,474
NONINTEREST INCOME
Investment management and trust 273,849 41,459 315,308
Service charges, fees and commissions 354,297 78,815 433,112
Mortgage banking 50,590 50,590
Net securities gains 187,694 7,005 194,699
Other 78,819 59,174 137,993
--------------------------------------------------------------
Total noninterest income 945,249 186,453 1,131,702
NONINTEREST EXPENSE
Staff expense 685,388 219,332 904,720
Net occupancy and equipment 229,308 71,503 300,811
Amortization of intangibles 31,589 6,334 37,923
Federal deposit insurance 65,488 33,841 99,329
Other 441,953 203,475 645,428
--------------------------------------------------------------
Total noninterest expense 1,453,726 534,485 1,988,211
--------------------------------------------------------------
Income before income taxes and
cumulative effect of changes in
accounting principles 1,116,612 20,353 1,136,965
Applicable income taxes 371,349 (111,043) 260,306
--------------------------------------------------------------
Income before cumulative effect of
changes in accounting principles 745,263 131,396 876,659
Cumulative effect of changes in
accounting principles (19,393) 38,962 19,569
--------------------------------------------------------------
Net income $ 725,870 $ 170,358 $ 896,228
_____________________________________________________________________________________________________________
EARNINGS PER COMMON SHARE
Primary before cumulative effect of
changes in accounting principles $ 3.14 $ 2.51 $ 2.55
Cumulative effect of changes in
accounting principles (.08) .76 .06
--------------------------------------------------------------
Primary $ 3.06 $ 3.27 $ 2.61
--------------------------------------------------------------
Fully diluted before cumulative effect
of changes in accounting principles $ 3.13 $ 2.51 $ 2.53
Cumulative effect of changes in
accounting principles (.09) .74 .06
--------------------------------------------------------------
Fully diluted $ 3.04 $ 3.25 $ 2.59
--------------------------------------------------------------
AVERAGE COMMON SHARES OUTSTANDING
Primary 236,386 50,943 340,820
Fully diluted 238,421 52,569 346,187
_____________________________________________________________________________________________________________
<FN>
See accompanying Notes to Pro Forma Consolidated Financial Information.
</TABLE>
12
<PAGE> 7
PNC BANK CORP.
Pro Forma Consolidated Statement of Income (Unaudited)
Year ended December 31, 1992
<TABLE>
<CAPTION>
PNC MIDLANTIC PRO FORMA
In thousands, except per share data BANK CORP. CORPORATION ADJUSTMENTS PRO FORMA
______________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
INTEREST INCOME
Loans and fees on loans $1,964,248 $ 844,240 $2,808,488
Securities 1,203,643 181,421 1,385,064
Other 51,080 36,546 87,626
--------------------------------------------------------------
Total interest income 3,218,971 1,062,207 4,281,178
INTEREST EXPENSE
Deposits 1,063,422 483,154 1,546,576
Borrowed funds 352,162 17,341 369,503
Notes and debentures 146,095 41,517 187,612
--------------------------------------------------------------
Total interest expense 1,561,679 542,012 2,103,691
--------------------------------------------------------------
Net interest income 1,657,292 520,195 2,177,487
Provision for credit losses 323,531 170,299 493,830
--------------------------------------------------------------
Net interest income less provision for
credit losses 1,333,761 349,896 1,683,657
NONINTEREST INCOME
Investment management and trust 260,113 46,776 306,889
Service charges, fees and commissions 330,317 79,478 409,795
Mortgage banking 30,476 30,476
Net securities gains 193,503 52,753 246,256
Other 72,367 111,358 183,725
--------------------------------------------------------------
Total noninterest income 886,776 290,365 1,177,141
NONINTEREST EXPENSE
Staff expense 668,403 257,221 925,624
Net occupancy and equipment 206,560 87,186 293,746
Amortization of intangibles 18,294 7,696 25,990
Federal deposit insurance 65,629 34,090 99,719
Other 483,529 244,196 727,725
--------------------------------------------------------------
Total noninterest expense 1,442,415 630,389 2,072,804
--------------------------------------------------------------
Income before income taxes and
cumulative effect of change in
accounting principle 778,122 9,872 787,994
Applicable income taxes 248,682 2,844 251,526
--------------------------------------------------------------
Income before cumulative effect of
change in accounting principle 529,440 7,028 536,468
Cumulative effect of change in
accounting principle (102,501) (102,501)
--------------------------------------------------------------
Net income $ 426,939 $ 7,028 $ 433,967
_____________________________________________________________________________________________________________
EARNINGS PER COMMON SHARE
Primary before cumulative effect of
change in accounting principle $ 2.36 $ .08 $ 1.72
Cumulative effect of change in
accounting principle (.46) (.33)
--------------------------------------------------------------
Primary $ 1.90 $ .08 $ 1.39
--------------------------------------------------------------
Fully diluted before cumulative effect
of change in accounting principle $ 2.34 $ .08 $ 1.70
Cumulative effect of change in
accounting principle (.45) (.32)
-------------------------------------------------------------
Fully diluted $ 1.89 $ .08 $ 1.38
-------------------------------------------------------------
AVERAGE COMMON SHARES OUTSTANDING
Primary 224,023 41,569 309,240
Fully diluted 227,125 41,954 316,333
______________________________________________________________________________________________________________
<FN>
See accompanying Notes to Pro Forma Consolidated Financial Information.
</TABLE>
13
<PAGE> 8
NOTES TO PRO FORMA CONSOLIDATED FINANCIAL INFORMATION
(UNAUDITED)
1. The pro forma consolidated financial information presented herein is
unaudited and has been prepared assuming the merger will be accounted for as
a pooling of interests. Accordingly, the related pro forma adjustments
included herein reflect an assumed exchange ratio of 2.05 shares
of the Corporation's common stock for each share of Midlantic common stock
("Exchange Ratio").
2. During 1995 and 1994, the Corporation completed, or has pending,
various other acquisitions which individually and in the aggregate are not
"significant subsidiaries" in relation to the Corporation. Accordingly, pro
forma financial information with respect to those acquisitions is not
included herein.
3. Pro forma earnings per share data has been computed based on the
combined historical net income applicable to common shareholders of the
Corporation and Midlantic, using the historical weighted average shares
outstanding of the Corporation's common stock and the weighted average
shares of Midlantic adjusted by the Exchange Ratio. The 1992 pro forma
earnings per share data reflects an adjustment to the Midlantic historical
net income applicable to common shareholders and fully diluted weighted
average common shares ourstanding for the dilutive effect of assuming the
conversion of Midlantic debentures and the realted interest expense.
4. The pro forma consolidated financial information does not include
any expenses or nonrecurring charges related to the transaction nor the
estimated effect of revenue enhancements and expense savings to be initiated
as part of the operations of the Corporation and Midlantic.
5. Shareholders' equity has been adjusted to record the assumed
exchange of 2.05 shares of the Corporation's common stock for each share of
outstanding Midlantic common stock (52,433,679 at March 31, 1995). In
addition, the computation assumes that all stock options have been exercised
for $17 million in cash and the recognition of a related tax benefit of $29
million. As a result, outstanding Midlantic common stock was eliminated and
Midlantic treasury stock was assumed to be retired. Common shares of the
Corporation assumed to be issued in exchange for outstanding shares and
options of Midlantic totaled 111,554,875. Midlantic's 8.25% convertible
debentures, which approximate $75 million for all periods presented, are
convertible into Midlantic common stock at a conversion price of $48 per
share. For purposes of this pro forma consolidated financial information,
conversion of these debentures has not been assumed.
