<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
SEPTEMBER 26, 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) 762-1553
(Registrant's telephone number, including area code)
(Former name or former address, if changed since last report)
<PAGE> 2
ITEM 5. OTHER EVENTS
1995 THIRD QUARTER FINANCIAL RESULTS
On October 18, 1995, PNC Bank Corp. ("Corporation") reported results
of operations for the three months and nine months ended September 30,
1995. A copy of the earnings press release issued by the
Corporation is attached as Exhibit 99 and incorporated herein
by reference.
PROPOSED MERGER WITH MIDLANTIC CORPORATION
On September 26, 1995, the Corporation received approval of the
proposed merger ("Merger") with Midlantic Corporation ("Midlantic")
from the Board of Governors of the Federal Reserve System ("Federal
Reserve") under the Bank Holding Company Act of 1956, as amended (the
"BHCA"). The BHCA provides that the Merger may not be consummated until
the 30th day after Federal Reserve approval is received. On October 3,
1995, the Corporation also received approval of the Merger from the
Commissioner of Banking of New Jersey under applicable provisions of
New Jersey banking laws.
At a Special Meeting of Shareholders to be held on Friday,
November 17, 1995, shareholders of record of the Corporation at the
close of business on September 29, 1995, will be asked to consider and
vote upon the Merger, including, among other things, the issuance of
up to 115,000,000 shares of the Corporation's common stock.
ADDITIONAL DIRECTOR
On October 5, 1995, Paul W. Chellgren, President and Chief
Operating Officer of Ashland, Inc., was appointed to the Corporation's
Board of Directors, increasing the number of directors to eighteen.
As previously disclosed, there will be an additional four directors
appointed to the Corporation's Board of Directors upon consummation
of the Merger.
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: October 19, 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
October 18, 1995, with respect to the results of operations for the three
months and nine months ended September 30, 1995, is filed herewith.
4
<PAGE> 1
Exhibit 99
CONTACTS:
MEDIA:
- ------
Jonathan Williams
(412) 762-4550
INVESTORS:
- ----------
William H. Callihan
(412) 762-8257
PNC BANK CORP. EARNS $149.0 MILLION IN THIRD QUARTER
PITTSBURGH, October 18, 1995 -- PNC Bank Corp. (NYSE: PNC) today
reported 1995 third quarter net income of $149.0 million, or $0.64 per fully
diluted share, compared with $188.0 million, or $0.79 per fully diluted share,
a year ago. Return on average assets and return on average common shareholders'
equity were 0.96 percent and 13.42 percent, respectively, in the third quarter
of 1995, and the after-tax profit margin was 22.6 percent. Net income totaled
$137.0 million, or $0.59 per fully diluted share, for the second quarter of
1995. For the first nine months of 1995, net income was $411.7 million or $1.77
per fully diluted share, compared with $581.5 million and $2.44, respectively,
in the previous year.
"Third quarter results are consistent with our expectations and
characterized by a solid performance in our core businesses. Actions taken
within the last year to reposition our balance sheet have had a stabilizing
effect on net interest income and net interest margin," said Thomas H. O'Brien,
chairman and chief executive officer.
"We have received regulatory approval for our merger with Midlantic
Corporation. This transaction, coupled with the acquisition of Chemical Bank
New Jersey, will further strengthen our balance sheet by adding a stable base
of core deposits and consumer assets; leverage our position in Philadelphia;
and give us a significant presence in the attractive New Jersey marketplace."
-more-
<PAGE> 2
PNC Bank Corp. Earns $149.0 Million in Third Quarter -- Page 2
Taxable-equivalent net interest income totaled $372.8 million in the
third quarter of 1995 compared with $503.2 million a year ago. The net
interest margin was 2.61 percent compared with 3.45 percent in the third
quarter of 1994. The declines reflect the costs of actions taken over the last
year to downsize the balance sheet and reduce interest rate sensitivity.
Net interest income and net interest margin in the second quarter of 1995
were $370.6 million and 2.58 percent, respectively.
Average assets for the third quarter of 1995 totaled $61.7 billion
compared with $62.0 billion in the third quarter last year. For the third
quarter of 1995, average loans totaled $36.8 billion. Excluding acquisitions,
average loans increased 6.4 percent compared with the third quarter of 1994.
Average loans represented 64.5 percent of average earning assets compared with
59.2 percent a year ago.
Noninterest income increased $56.2 million, or 24.3 percent, to $287.3
million in the third quarter of 1995 compared with the year-earlier period.
Investment management and trust income increased $24.3 million, or 33.6
percent, to $96.7 million, due to the BlackRock acquisition, new business, and
an increase in the value of managed assets. Discretionary assets totaled $85.9
billion at Sept. 30, 1995, compared with $50.1 billion a year ago. Service
charges, fees and commissions decreased $3.4 million to $91.7 million in the
third quarter of 1995 compared with the same quarter a year ago, primarily
reflecting the impact of the Corporation's credit card alliance. Effective May
1, 1995, the Corporation entered into an alliance with third parties to provide
certain administrative, marketing and data processing services for the
Corporation's credit card business. The third parties receive the related fee
income and incur associated operating expenses for such services. Excluding the
effect of this alliance, service charges, fees and commissions increased 4.0
percent, or $3.5 million.
Mortgage banking income decreased $27.6 million to $51.3 million during
the third quarter of 1995 compared with the year-earlier period primarily due
to lower gains on sales of servicing.
-more-
<PAGE> 3
PNC Bank Corp. Earns $149.0 Million in Third Quarter -- Page 3
Other noninterest income increased $18.6 million in the comparison.
A $28.2 million gain on the sale of 12 branches located in Dayton, Ohio, was
partially offset by lower venture capital income. The branch sale was
initiated in connection with the ongoing rationalization of the Corporation's
retail branch network.
Noninterest expense decreased $3.1 million to $432.8 million for the
third quarter of 1995 compared with the year-earlier period. Lower staff and
Federal deposit insurance expenses were substantially offset in the comparison
by the impact of acquisitions.
Total assets and shareholders' equity were $61.2 billion and $4.5
billion, respectively, at Sept. 30, 1995 compared with $64.1 billion and
$4.4 billion at Dec. 31, 1994. At Sept. 30, 1995, the leverage capital
ratio was 6.45 percent, and Tier I and total risk-based capital ratios are
estimated to be 8.3 percent and 11.9 percent, respectively.
The Corporation's asset quality remained strong during the quarter. The
allowance for credit losses was $943.3 million at Sept. 30, 1995, or 346
percent of nonperforming loans compared with 312 percent at June 30, 1995, and
281 percent at Sept. 30, 1994. Nonperforming assets declined $38.2 million
during the quarter to $407.7 million at Sept. 30, 1995. The comparable
amounts at June 30, 1995, and Sept. 30, 1994, were $445.9 million and $515.2
million, respectively.
The ratio of nonperforming assets to total loans and foreclosed assets
was 1.10 percent at Sept. 30, 1995, compared with 1.44 percent a year ago.
Net charge-offs totaled $17.8 million in the third quarter of 1995 compared
with $16.0 million in the year-earlier period.
On July 10, 1995, PNC Bank Corp. entered into a definitive merger
agreement with Midlantic Corporation, a regional bank holding company
headquartered in Edison, N.J. At Sept. 30, 1995, Midlantic had assets and
deposits of approximately $13.9 billion and $10.9 billion, respectively. The
merger, which will be accounted for as a pooling of interests, is targeted to
be completed by year-end 1995, pending approval by shareholders of both
companies.
-more-
<PAGE> 4
PNC Bank Corp. Earns $149.0 Million in Third Quarter -- Page 4
Effective the close of business Oct. 6, 1995, the Corporation
completed the acquisition of the southern and central New Jersey franchise of
Chemical Bank for approximately $485 million in cash. The transaction added
total assets of $3.2 billion and retail core deposits of $2.7 billion.
PNC Bank Corp., headquartered in Pittsburgh, is one of the largest
financial services organizations in the United States, with banking
subsidiaries in Pennsylvania, New Jersey, Delaware, Ohio, Kentucky, Indiana,
Massachusetts, and Florida. Its major businesses include corporate banking;
consumer banking; mortgage banking; and asset management.
[TABULAR MATERIAL FOLLOWS]
<PAGE> 5
Page 5
PNC BANK CORP. AND SUBSIDIARIES
Consolidated Financial Highlights
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 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) $372,796 $503,240 $1,135,535 $1,510,407
Net income 149,046 187,998 411,685 581,532
Fully diluted earnings per common share .64 .79 1.77 2.44
Return on average total assets .96% 1.20% .89% 1.29%
Return on average common shareholders' equity 13.42 17.15 12.61 18.04
Net interest margin 2.61 3.45 2.64 3.57
After-tax profit margin 22.58 25.60 21.39 26.10
Overhead ratio 65.57 59.36 67.36 57.49
SELECTED AVERAGE BALANCES (In millions)
Assets $61,716 $61,988 $61,775 $60,204
Earnings assets 57,099 58,275 57,255 56,518
Loans, net of unearned income 36,824 34,494 36,116 33,025
Securities 18,805 22,422 19,848 21,844
Deposits 34,252 33,982 33,702 32,665
Borrowings 13,294 11,346 13,299 11,284
Shareholders' equity 4,425 4,360 4,384 4,320
==================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
September 30 June 30 December 31 September 30
1995 1995 1994 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SELECTED RATIOS
Capital
Leverage 6.45% 6.29% 6.59% 6.82%
Common shareholders' equity to total assets 7.33 7.04 6.82 6.92
Average common shareholders' equity to average total assets 7.07 7.03 7.09 7.14
Asset quality
Net charge-offs to average loans .22 .23 .29 .27
Nonperforming loans to total loans .74 .84 .90 1.03
Nonperforming assets to total loans and foreclosed assets 1.10 1.21 1.25 1.44
Allowance for credit losses to total loans 2.56 2.62 2.83 2.89
Allowance for credit losses to nonperforming loans 346.28 311.53 314.17 281.35
Book value per common share
As reported $19.62 $19.37 $18.76 $18.87
Excluding net unrealized securities losses 19.82 19.55 19.26 19.46
===================================================================================================================================
</TABLE>
-more-
<PAGE> 6
PNC BANK CORP. AND SUBSIDIARIES Page 6
Condensed Consolidated Statement of Income
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
-------------------------- ---------------------------
In thousands, except per share data 1995 1994 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INTEREST INCOME
Loans and fees on loans $749,019 $652,127 $2,194,025 $1,818,974
Securities 262,974 335,117 841,761 947,572
Other 27,481 20,325 70,410 71,121
- ------------------------------------------------------------------------------------------------------------------------------------
Total interest income 1,039,474 1,007,569 3,106,196 2,837,667
INTEREST EXPENSE
Deposits 329,378 249,532 941,996 664,777
Borrowed funds 210,868 131,161 629,735 338,394
Notes and debentures 134,435 131,921 423,370 349,241
- ------------------------------------------------------------------------------------------------------------------------------------
Total interest expense 674,681 512,614 1,995,101 1,352,412
- ------------------------------------------------------------------------------------------------------------------------------------
Net interest income 364,793 494,955 1,111,095 1,485,255
Provision for credit losses 10,078 60,123
- ------------------------------------------------------------------------------------------------------------------------------------
Net interest income less provision for credit losses 364,793 484,877 1,111,095 1,425,132
NONINTEREST INCOME
Investment management and trust 96,657 72,354 273,306 218,815
Service charges, fees and commissions 91,717 95,094 272,125 275,135
Mortgage banking 51,333 78,911 146,653 159,274
Net securities gains (losses) 44 (44,202) 9,080 (13,895)
Other 47,536 28,942 88,270 78,561
- ------------------------------------------------------------------------------------------------------------------------------------
Total noninterest income 287,287 231,099 789,434 717,890
NONINTEREST EXPENSE
Staff expense 204,841 208,128 611,289 618,999
Net occupancy and equipment 69,314 67,880 206,073 200,022
Other 158,647 159,905 479,222 462,033
- ------------------------------------------------------------------------------------------------------------------------------------
Total noninterest expense 432,802 435,913 1,296,584 1,281,054
- ------------------------------------------------------------------------------------------------------------------------------------
Income before income taxes 219,278 280,063 603,945 861,968
Applicable income taxes 70,232 92,065 192,260 280,436
- ------------------------------------------------------------------------------------------------------------------------------------
Net income $149,046 $187,998 $411,685 $581,532
====================================================================================================================================
EARNINGS PER COMMON SHARE
Primary $.65 $.79 $1.78 $2.45
Fully diluted .64 .79 1.77 2.44
CASH DIVIDENDS DECLARED PER COMMON SHARE .35 .32 1.05 .96
AVERAGE COMMON SHARES OUTSTANDING
Primary 229,837 236,914 230,869 236,954
Fully diluted 231,875 238,735 233,087 238,807
====================================================================================================================================
</TABLE>
-more-
<PAGE> 7
PNC BANK CORP. AND SUBSIDIARIES Page 7
Details of Net Interest Income
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
Taxable-equivalent basis ----------------------------- -----------------------------
In thousands 1995 1994 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net interest income before swaps and caps
Interest income $1,063,809 $978,784 $3,173,738 $2,739,946
Loan fees 19,421 19,543 54,913 54,321
Taxable-equivalent adjustment 8,003 8,285 24,440 25,152
- ------------------------------------------------------------------------------------------------------------------------------------
Total interest income 1,091,233 1,006,612 3,253,091 2,819,419
Interest expense 669,010 527,250 1,977,352 1,428,949
- ------------------------------------------------------------------------------------------------------------------------------------
Net interest income before swaps and caps 422,223 479,362 1,275,739 1,390,470
Effect of swaps and caps on
Interest income (43,756) 9,242 (122,455) 43,400
Interest expense 5,671 (14,636) 17,749 (76,537)
- ------------------------------------------------------------------------------------------------------------------------------------
Total swaps and caps (49,427) 23,878 (140,204) 119,937
- ------------------------------------------------------------------------------------------------------------------------------------
Net interest income $372,796 $503,240 $1,135,535 $1,510,407
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Three months ended
Taxable-equivalent basis September 30 June 30 March 31 December 31 September 30
In thousands 1995 1995 1995 1994 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net interest income before swaps and caps
Interest income $1,063,809 $1,065,165 $1,044,764 $1,026,612 $978,784
Loan fees 19,421 18,922 16,570 15,011 19,543
Taxable-equivalent adjustment 8,003 8,243 8,194 8,371 8,285
- ------------------------------------------------------------------------------------------------------------------------------------
Total interest income 1,091,233 1,092,330 1,069,528 1,049,994 1,006,612
Interest expense 669,010 671,750 636,592 598,060 527,250
- ------------------------------------------------------------------------------------------------------------------------------------
Net interest income before
swaps and caps 422,223 420,580 432,936 451,934 479,362
Effect of swaps and caps on
Interest income (43,756) (41,448) (37,251) (17,478) 9,242
Interest expense 5,671 8,561 3,517 1,734 (14,636)
- ------------------------------------------------------------------------------------------------------------------------------------
Total swaps and caps (49,427) (50,009) (40,768) (19,212) 23,878
- ------------------------------------------------------------------------------------------------------------------------------------
Net interest income $372,796 $370,571 $392,168 $432,722 $503,240
====================================================================================================================================
</TABLE>
-more-
<PAGE> 8
PNC BANK CORP. AND SUBSIDIARIES Page 8
Details of Net Interest Margin
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 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 7.38% 6.69% 7.37% 6.48%
Effect of loan fees .14 .13 .13 .13
Taxable-equivalent adjustment .06 .06 .06 .06
- ------------------------------------------------------------------------------------------------------------------------------------
Taxable-equivalent yield on earning assets 7.58 6.88 7.56 6.67
Rate on interest-bearing liabilities 5.34 4.16 5.29 3.93
- ------------------------------------------------------------------------------------------------------------------------------------
Interest rate spread before swaps and caps 2.24 2.72 2.27 2.74
Effect of
Noninterest-bearing sources .71 .55 .69 .52
Interest rate swaps and caps on
Interest income (.30) .06 (.28) .10
Interest expense .04 (.12) .04 (.21)
- ------------------------------------------------------------------------------------------------------------------------------------
Total swaps and caps (.34) .18 (.32) .31
- ------------------------------------------------------------------------------------------------------------------------------------
Net interest margin 2.61% 3.45% 2.64% 3.57%
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Three-months ended September 30 June 30 March 31 December 31 September 30
Taxable-equivalent basis 1995 1995 1995 1994 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Interest rate spread before swaps and caps
Book-basis yield on earnings assets 7.38% 7.42% 7.29% 6.91% 6.69%
Effect of loan fees .14 .13 .11 .10 .13
Taxable-equivalent adjustment .06 .06 .06 .06 .06
- ------------------------------------------------------------------------------------------------------------------------------------
Taxable-equivalent yield on earnings assets 7.58 7.61 7.46 7.07 6.88
Rate on interest-bearing liabilities 5.34 5.37 5.13 4.64 4.16
- ------------------------------------------------------------------------------------------------------------------------------------
Interest rate spread before swaps and caps 2.24 2.24 2.33 2.43 2.72
Effect of
Noninterest-bearing sources .71 .69 .67 .62 .55
Interest rate swaps and caps on
Interest income (.30) (.28) (.25) (.12) .06
Interest expense .04 .07 .03 .01 (.12)
- ------------------------------------------------------------------------------------------------------------------------------------
Total swaps and caps (.34) (.35) (.28) (.13) .18
- ------------------------------------------------------------------------------------------------------------------------------------
Net interest margin 2.61% 2.58% 2.72% 2.92% 3.45%
====================================================================================================================================
</TABLE>
-more-
<PAGE> 9
PNC BANK CORP. AND SUBSIDIARIES Page 9
Details of Noninterest Income
<TABLE>
<CAPTION>
NONINTEREST INCOME
Three months ended Nine months ended
September 30 September 30
--------------------------------- -------------------------------
In thousands 1995 1994 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment management and trust
Trust $60,229 $47,853 $173,425 $146,658
Mutual funds 36,428 24,501 99,881 72,157
- ------------------------------------------------------------------------------------------------------------------------------------
Total investment management and trust 96,657 72,354 273,306 218,815
Service charges, fees and commissions
Deposit account and corporate services 40,808 41,931 119,146 124,156
Credit card and merchant services 8,459 13,723 32,728 40,520
Corporate finance 11,543 12,075 33,795 33,302
Brokerage 11,175 9,306 31,236 26,529
Other services 19,732 18,059 55,220 50,628
- ------------------------------------------------------------------------------------------------------------------------------------
Total service charges, fees and commissions 91,717 95,094 272,125 275,135
Mortgage banking
Servicing 30,200 32,439 91,084 93,140
Sales of servicing 10,745 34,747 32,675 51,338
Marketing 10,388 11,725 22,894 14,796
- ------------------------------------------------------------------------------------------------------------------------------------
Total mortgage banking 51,333 78,911 146,653 159,274
Other 47,536 28,942 88,270 78,561
- ------------------------------------------------------------------------------------------------------------------------------------
Total noninterest income before
securities transactions 287,243 275,301 780,354 731,785
Net securities gains (losses) 44 (44,202) 9,080 (13,895)
- ------------------------------------------------------------------------------------------------------------------------------------
Total $287,287 $231,099 $789,434 $717,890
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Three months ended September 30 June 30 March 31 December 31 September 30
In thousands 1995 1995 1995 1994 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment management and trust
Trust $60,229 $62,229 $50,967 $47,402 $47,853
Mutual funds 36,428 35,280 28,173 25,835 24,501
- ------------------------------------------------------------------------------------------------------------------------------------
Total investment management and trust 96,657 97,509 79,140 73,237 72,354
Service charges, fees and commissions
Deposit account and corporate services 40,808 38,796 39,542 40,064 41,931
Credit card and merchant services 8,459 10,094 14,175 15,500 13,723
Corporate finance 11,543 11,545 10,707 11,414 12,075
Brokerage 11,175 10,818 9,243 9,010 9,306
Other services 19,732 17,731 17,757 19,023 18,059
- ------------------------------------------------------------------------------------------------------------------------------------
Total service charges, fees
and commissions 91,717 88,984 91,424 95,011 95,094
Mortgage banking
Servicing 30,200 29,761 31,123 28,636 32,439
Sales of servicing 10,745 9,672 12,258 9,235 34,747
Marketing 10,388 11,237 1,269 1,403 11,725
- ------------------------------------------------------------------------------------------------------------------------------------
Total mortgage banking 51,333 50,670 44,650 39,274 78,911
Other 47,536 20,089 20,645 18,253 28,942
- ------------------------------------------------------------------------------------------------------------------------------------
Total noninterest income before
securities transactions 287,243 257,252 235,859 225,775 275,301
Net securities gains (losses) 44 7,782 1,254 (121,024) (44,202)
- ------------------------------------------------------------------------------------------------------------------------------------
Total $287,287 $265,034 $237,113 $104,751 $231,099
====================================================================================================================================
</TABLE>
-more-
<PAGE> 10
PNC BANK CORP. AND SUBSIDIARIES Page 10
Details of Noninterest Expense
<TABLE>
<CAPTION>
NONINTEREST EXPENSE
Three months ended Nine months ended
September 30 September 30
-------------------------------- ---------------------------------
In thousands 1995 1994 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Compensation $169,858 $168,433 $500,065 $497,835
Employee benefits 34,983 39,695 111,224 121,164
- ------------------------------------------------------------------------------------------------------------------------------------
Total staff expense 204,841 208,128 611,289 618,999
Net occupancy 35,013 34,545 104,725 101,107
Equipment 34,301 33,335 101,348 98,915
Amortization of intangible assets 23,230 21,648 66,416 59,478
Federal deposit insurance 1,885 18,406 38,534 54,745
Taxes other than income 12,046 11,533 36,451 33,411
Other 121,486 108,318 337,821 314,399
- ------------------------------------------------------------------------------------------------------------------------------------
Total $432,802 $435,913 $1,296,584 $1,281,054
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Three months ended September 30 June 30 March 31 December 31 September 30
In thousands 1995 1995 1995 1994 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Compensation $169,858 $167,100 $163,107 $188,507 $168,433
Employee benefits 34,983 37,490 38,751 28,166 39,695
- ------------------------------------------------------------------------------------------------------------------------------------
Total staff expense 204,841 204,590 201,858 216,673 208,128
Net occupancy 35,013 35,008 34,704 46,606 34,545
Equipment 34,301 32,901 34,146 33,809 33,335
Amortization of intangible assets 23,230 22,040 21,146 22,759 21,648
Federal deposit insurance 1,885 18,273 18,376 19,157 18,406
Taxes other than income 12,046 12,348 12,057 10,816 11,533
Other 121,486 101,243 115,092 138,861 108,318
- ------------------------------------------------------------------------------------------------------------------------------------
Total $432,802 $426,403 $437,379 $488,681 $435,913
====================================================================================================================================
</TABLE>
- more -
<PAGE> 11
PNC BANK CORP. AND SUBSIDIARIES Page 11
Condensed Consolidated Balance Sheet
<TABLE>
<CAPTION>
September 30 December 31 September 30
In millions, except share data 1995 1994 1994
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Cash and due from banks $2,124 $2,592 $1,938
Short-term investments 637 809 782
Loans held for sale 901 487 517
Securities available for sale 2,228 3,457 4,985
Investment securities, fair value of $15,787, $16,233
and $17,113 16,035 17,464 17,976
Loans, net of unearned income of $225, $240 and $223 36,815 35,407 35,700
Allowance for credit losses (943) (1,002) (1,030)
- -----------------------------------------------------------------------------------------------------------------------------------
Net loans 35,872 34,405 34,670
Other 3,421 4,931 3,136
- -----------------------------------------------------------------------------------------------------------------------------------
Total assets $61,218 $64,145 $64,004
===================================================================================================================================
LIABILITIES
Deposits
Noninterest-bearing $6,496 $6,992 $6,572
Interest-bearing 26,517 28,019 26,997
- -----------------------------------------------------------------------------------------------------------------------------------
Total deposits 33,013 35,011 33,569
Borrowed funds 12,683 11,608 12,375
Notes and debentures 9,616 11,754 11,839
Other 1,402 1,378 1,775
- -----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 56,714 59,751 59,558
- -----------------------------------------------------------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
Realized shareholders' equity 4,549 4,513 4,584
Net unrealized securities losses (45) (119) (138)
- -----------------------------------------------------------------------------------------------------------------------------------
Total shareholders' equity 4,504 4,394 4,446
- -----------------------------------------------------------------------------------------------------------------------------------
Total liabilities and shareholders' equity $61,218 $64,145 $64,004
===================================================================================================================================
COMMON SHAREHOLDERS' EQUITY $4,486 $4,375 $4,427
COMMON SHARES OUTSTANDING 228,598,590 233,248,508 234,565,250
===================================================================================================================================
</TABLE>
-more-
<PAGE> 12
PNC BANK CORP. AND SUBSIDIARIES Page 12
Condensed Consolidated Average Balance Sheet
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
------------------------------------ -----------------------------------
In millions 1995 1994 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Interest-earning assets
Short-term investments $518 $744 $635 $821
Securities available for sale 2,445 5,488 3,009 7,810
Investment securities 16,360 16,934 16,839 14,034
Loans, net of unearned income
Commercial 12,660 12,454 12,425 11,963
Real estate project 1,713 1,621 1,666 1,693
Real estate mortgage 11,761 9,836 11,345 9,293
Consumer 9,088 8,993 9,039 8,689
Other 1,602 1,590 1,641 1,387
- ------------------------------------------------------------------------------------------------------------------------------------
Total loans, net of unearned income 36,824 34,494 36,116 33,025
Other interest-earning assets 952 615 656 828
- ------------------------------------------------------------------------------------------------------------------------------------
Total interest-earning assets 57,099 58,275 57,255 56,518
Other 4,617 3,713 4,520 3,686
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets $61,716 $61,988 $61,775 $60,204
====================================================================================================================================
LIABILITIES
Interest-bearing liabilities
Deposits $27,800 $27,657 $27,391 $26,507
Borrowed funds 13,294 11,346 13,299 11,284
Notes and debentures 8,459 11,358 9,132 10,848
- ------------------------------------------------------------------------------------------------------------------------------------
Total interest-bearing liabilities 49,553 50,361 49,822 48,639
Noninterest-bearing deposits 6,452 6,325 6,311 6,158
Other 1,286 942 1,258 1,087
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 57,291 57,628 57,391 55,884
- ------------------------------------------------------------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY 4,425 4,360 4,384 4,320
- ----------------------------------------------------------------------------------------------------------------------------------
Total liabilities and shareholders' equity $61,716 $61,988 $61,775 $60,204
====================================================================================================================================
COMMON SHAREHOLDERS' EQUITY $4,407 $4,341 $4,366 $4,300
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Three months ended September 30 June 30 March 31 December 31 September 30
In thousands 1995 1995 1995 1994 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Interest-earning assets
Securities available for sale $2,445 $2,967 $3,626 $5,172 $5,488
Investment securities 16,360 16,891 17,277 17,751 16,934
Loans, net of unearned income 36,824 36,191 35,315 34,955 34,494
Other interest-earning assets 1,470 1,171 1,230 1,295 1,359
- ------------------------------------------------------------------------------------------------------------------------------------
Total interest-earning assets 57,099 57,220 57,448 59,173 58,275
Other 4,617 4,698 4,245 3,779 3,713
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets $61,716 $61,918 $61,693 $62,952 $61,988
====================================================================================================================================
LIABILITIES
Interest-bearing liabilities
Deposits $27,800 $27,425 $26,937 $26,943 $27,657
Borrowed funds 13,294 13,281 13,328 11,642 11,346
Notes and debentures 8,459 9,213 9,736 12,593 11,358
- ------------------------------------------------------------------------------------------------------------------------------------
Total interest-bearing liabilities 49,553 49,919 50,001 51,178 50,361
Noninterest-bearing deposits 6,452 6,362 6,115 6,466 6,325
Other 1,286 1,268 1,220 922 942
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 57,291 57,549 57,336 58,566 57,628
- ------------------------------------------------------------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY 4,425 4,369 4,357 4,386 4,360
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities and shareholders' equity $61,716 $61,918 $61,693 $62,952 $61,988
====================================================================================================================================
</TABLE>
-more-
<PAGE> 13
PNC BANK CORP. AND SUBSIDIARIES Page 13
Asset Quality Data
<TABLE>
<CAPTION>
ALLOWANCE FOR CREDIT LOSSES
Three months ended Nine months ended
September 30 September 30
---------------------------- ----------------------------
In millions 1995 1994 1995 1994
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Beginning balance $961 $1,036 $1,002 $972
Charge-offs (33) (39) (107) (120)
Recoveries 15 23 47 53
- ----------------------------------------------------------------------------------------------------------------------------------
Net charge-offs (18) (16) (60) (67)
Provision for credit losses 10 60
Acquisitions 1 65
- ----------------------------------------------------------------------------------------------------------------------------------
Ending balance $943 $1,030 $943 $1,030
==================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
NONPERFORMING ASSETS
September 30 March 31 December 31 September 30
In millions 1995 1995 1994 1994
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Nonaccrual loans
Commercial $93 $110 $143 $176
Real estate project 82 95 70 79
Real estate mortgage
Commercial 40 44 44 57
Residential 53 52 53 50
- ----------------------------------------------------------------------------------------------------------------------------------
Total nonaccrual loans 268 301 310 362
Restructured loans 5 7 9 4
- ----------------------------------------------------------------------------------------------------------------------------------
Total nonperforming loans 273 308 319 366
Foreclosed assets
Real estate project 87 88 77 91
Real estate mortgage
Commercial 3 4 5 5
Residential 24 25 21 26
Other 21 21 24 27
- ----------------------------------------------------------------------------------------------------------------------------------
Total foreclosed assets 135 138 127 149
- ----------------------------------------------------------------------------------------------------------------------------------
Total $408 $446 $446 $515
==================================================================================================================================
</TABLE>
###
