<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
January 13, 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
1994 FINANCIAL RESULTS
On January 19, 1995, PNC Bank Corp. ("Corporation") reported results
of operations for the three months and twelve months ended December 31,
1994. Excerpts from the earnings press release issued by the
Corporation is attached as Exhibit 99 and incorporated herein
by reference.
ACQUISITION OF INDIAN RIVER FEDERAL SAVINGS BANK
On January 13, 1995, the Corporation acquired Indian River Federal
Savings Bank ("Indian River") for approximately $12 million in cash.
Indian River had assets of $79 million and deposits of $62 million on
December 31, 1994. Indian River offers full private banking services to
customers throughout Florida.
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: January 23, 1995 By /s/ Robert L. Haunschild
--------------------------
Robert L. Haunschild
SENIOR VICE PRESIDENT AND
CHIEF FINANCIAL OFFICER
3
<PAGE> 4
EXHIBIT INDEX
99 Excerpts from the earnings press release issued by the Corporation on
January 19, 1995, with respect to results of operations for the three
months and twelve months ended December 31, 1994, filed herewith.
4
<PAGE> 1
Exhibit 99
PNC BANK CORP. AND SUBSIDIARIES
Consolidated Financial Highlights
<TABLE>
FINANCIAL PERFORMANCE
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<CAPTION>
Three months ended Twelve months ended
December 31 December 31
------------------------- ---------------------------
IN THOUSANDS, EXCEPT PER SHARE DATA AND RATIOS 1994 1993 1994 1993
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<S> <C> <C> <C> <C>
Net interest income (taxable-equivalent basis) $432,722 $470,955 $1,943,129 $1,868,535
Income before cumulative effect of
changes in accounting principles 28,530 171,434 610,062 745,263
Net income 28,530 171,434 610,062 725,870
Earnings per common share
Before cumulative effect of changes in accounting principles
Primary .12 .72 2.57 3.14
Fully diluted .12 .72 2.56 3.13
Net income
Primary .12 .72 2.57 3.06
Fully diluted .12 .72 2.56 3.04
Cash dividends declared per common share .35 .32 1.31 1.175
Average common shares outstanding
Primary 235,337 236,427 236,610 236,386
Fully diluted 237,134 238,360 238,448 238,421
Net interest margin 2.92% 3.77% 3.40% 3.95%
Returns before cumulative effect of changes in accounting principles
Return on average total assets .18 1.28 1.00 1.48
Return on average common shareholders' equity 2.56 16.52 14.10 18.89
Returns based on net income
Return on average total assets .18 1.28 1.00 1.44
Return on average common shareholders' equity 2.56 16.52 14.10 18.40
Average shareholders' equity to average total assets 6.97 7.79 7.12 7.86
Net charge-offs to average loans .32 .60 .29 .66
Provision for credit losses to net charge-offs 0.00 92.12 62.77 118.57
After-tax profit margin 5.31 25.31 22.06 25.80
Overhead ratio 90.92 55.46 63.99 51.66
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</TABLE>
<TABLE>
<CAPTION>
PERIOD-END RATIOS
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1993 1993
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<S> <C> <C>
Capital
Leverage 6.59% 7.85%
Common shareholders' equity to total assets 6.82 6.93
Asset quality
Nonperforming loans to total loans .90 1.15
Nonperforming assets to total loans and foreclosed assets 1.25 1.65
Nonperforming assets to total assets .69 .89
Allowance for credit losses to total loans 2.83 2.92
Allowance for credit losses to nonperforming loans 314.17 253.12
Book value per common share
As reported $18.76 $18.34
Excluding net unrealized securities gains/losses 19.26 17.96
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</TABLE>
<PAGE> 2
PNC BANK CORP. AND SUBSIDIARIES
Condensed Consolidated Statement of Income
<TABLE>
<CAPTION>
====================================================================================================================================
Three months ended Twelve months ended
December 31 December 31
-------------------------- ---------------------------
IN THOUSANDS 1994 1993 1994 1993
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<S> <C> <C> <C> <C>
INTEREST INCOME
Loans and fees on loans $660,119 $517,005 $2,479,093 $1,950,937
Securities 343,426 279,858 1,290,998 1,203,151
Other 20,600 18,338 91,721 47,032
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Total interest income 1,024,145 815,201 3,861,812 3,201,120
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INTEREST EXPENSE
Deposits 271,099 180,564 935,876 742,772
Borrowed funds 160,858 86,425 499,252 362,995
Notes and debentures 167,837 86,498 517,078 266,320
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Total interest expense 599,794 353,487 1,952,206 1,372,087
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Net interest income 424,351 461,714 1,909,606 1,829,033
Provision for credit losses 38,692 60,123 203,944
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Net interest income less provision for credit losses 424,351 423,022 1,849,483 1,625,089
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NONINTEREST INCOME
Investment management and trust 73,237 70,269 292,052 273,849
Service charges, fees and commissions 95,011 93,102 370,146 354,297
Mortgage banking 39,274 24,093 198,548 50,590
Net securities gains (losses) (121,024) 3,404 (134,919) 187,694
Other 18,253 15,462 96,814 78,819
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Total noninterest income 104,751 206,330 882,641 945,249
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NONINTEREST EXPENSE
Staff expense 216,673 173,379 835,672 685,388
Net occupancy and equipment 80,415 60,486 280,437 229,308
Amortization of intangibles 22,759 8,852 82,237 31,589
Federal deposit insurance 19,157 16,824 73,902 65,488
Other 149,677 116,108 497,487 441,953
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Total noninterest expense 488,681 375,649 1,769,735 1,453,726
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Income before income taxes and cumulative
effect of changes in accounting principles 40,421 253,703 902,389 1,116,612
Applicable income taxes 11,891 82,269 292,327 371,349
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Income before cumulative effect of
changes in accounting principles 28,530 171,434 610,062 745,263
Cumulative effect of changes in accounting
principles, net of tax benefit of $5,343 (19,393)
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Net income $28,530 $171,434 $610,062 $725,870
====================================================================================================================================
</TABLE>
<PAGE> 3
PNC BANK CORP. AND SUBSIDIARIES
Details of Net Interest Income and Net Interest Margin
<TABLE>
<CAPTION>
NET INTEREST INCOME
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Three months ended Twelve months ended
December 31 September 30 December 31
----------------------------- -----------------------------
Taxable-equivalent basis 1994 1994 1994 1993
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<S> <C> <C> <C> <C>
Interest income/expense before swaps:
Interest income $1,026,612 $ 978,784 $3,766,558 $3,080,500
Loan fees 15,011 19,543 69,332 65,570
Taxable-equivalent adjustment 8,371 8,285 33,523 39,502
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Total interest income 1,049,994 1,006,612 3,869,413 3,185,572
Interest expense 598,060 527,250 2,027,009 1,520,294
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Net interest income before swaps 451,934 479,362 1,842,404 1,665,278
Interest rate swaps (19,212) 23,878 100,725 203,257
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Net interest income $432,722 $503,240 $1,943,129 $1,868,535
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
NET INTEREST MARGIN
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Three months ended Twelve months ended
December 31 September 30 December 31
------------------------------ ----------------------
Taxable-equivalent basis 1994 1994 1994 1993
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<S> <C> <C> <C> <C>
Book-basis yield on earning assets 6.91% 6.70% 6.58% 6.51%
Effect of loan fees .10 .13 .12 .14
Taxable-equivalent adjustment .06 .06 .06 .08
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Taxable-equivalent yield on earning assets 7.07 6.89 6.76 6.73
Rate on interest-bearing liabilities 4.64 4.16 4.11 3.81
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Interest rate spread 2.43 2.73 2.65 2.92
Effect of:
Noninterest-bearing sources .63 .56 .57 .60
Interest rate swaps (.14) .16 .18 .43
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Net interest margin 2.92% 3.45% 3.40% 3.95%
====================================================================================================================================
</TABLE>
<TABLE>
NONINTEREST INCOME
====================================================================================================================================
<CAPTION>
Three months ended Twelve months ended
December 31 December 31
------------------------------- -------------------------------
IN THOUSANDS 1994 1993 1994 1993
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<S> <C> <C> <C> <C>
Investment management and trust
Trust $47,402 $46,611 $194,060 $184,286
Mutual funds 25,835 23,658 97,992 89,563
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Total investment management and trust 73,237 70,269 292,052 273,849
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Service charges, fees and commissions
Deposit account and corporate services 40,064 39,122 164,220 156,468
Credit card and merchant services 15,500 14,794 56,020 55,529
Brokerage 9,010 9,751 35,539 37,989
Corporate finance 11,414 10,063 44,716 40,358
Other services 19,023 19,372 69,651 63,953
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Total service charges, fees and commissions 95,011 93,102 370,146 354,297
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Mortgage banking
Servicing 28,636 17,004 121,776 34,365
Sales of servicing 9,235 60,573
Marketing 1,403 7,089 16,199 16,225
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Total mortgage banking 39,274 24,093 198,548 50,590
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Other 18,253 15,462 96,814 78,819
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Total noninterest income before net
securities gains (losses) 225,775 202,926 957,560 757,555
Net securities gains (losses) (121,024) 3,404 (134,919) 187,694
- ------------------------------------------------------------------------------------------------------------------------------------
Total $104,751 $206,330 $822,641 $945,249
====================================================================================================================================
</TABLE>
<TABLE>
NONINTEREST EXPENSE
====================================================================================================================================
<CAPTION>
Three months ended Twelve months ended
December 31 December 31
-------------------------------- -----------------------------------
IN THOUSANDS 1994 1993 1994 1993
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<S> <C> <C> <C> <C>
Compensation $188,507 $158,872 $686,342 $582,181
Employee benefits 28,166 14,507 149,330 103,207
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Total staff expense 216,673 173,379 835,672 685,388
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Net occupancy 46,606 28,905 147,713 115,354
Equipment 33,809 31,581 132,724 113,954
Amortization of intangible assets 22,759 8,852 82,237 31,589
Federal deposit insurance 19,157 16,824 73,902 65,488
Taxes other than income 10,816 8,012 44,227 36,070
Other 138,861 108,096 453,260 405,883
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Total $488,681 $375,649 $1,769,735 $1,453,726
====================================================================================================================================
</TABLE>
<PAGE> 4
PNC BANK CORP. AND SUBSIDIARIES
Condensed Consolidated Balance Sheet
<TABLE>
<CAPTION>
===================================================================================================================================
IN MILLIONS, EXCEPT SHARE DATA 1994 1993
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<S> <C> <C>
ASSETS
Cash and due from banks $2,592 $1,817
Short-term investments 809 856
Loans held for sale 487 1,392
Securities available for sale 3,457 11,388
Investment securities, fair value of $16,233 and $11,716 17,464 11,672
Loans, net of unearned income of $240 and $222 35,407 33,308
Allowance for credit losses (1,002) (972)
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Net loans 34,405 32,336
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Other 4,931 2,619
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Total assets $64,145 $62,080
===================================================================================================================================
LIABILITIES
Deposits
Noninterest-bearing $6,992 $7,057
Interest-bearing 28,019 26,058
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Total deposits 35,011 33,115
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Borrowed funds 11,608 11,662
Notes and debentures 11,754 9,585
Other 1,378 3,393
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Total liabilities 59,751 57,755
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SHAREHOLDERS' EQUITY
Realized shareholders' equity 4,513 4,237
Net unrealized securities gains (losses) (119) 88
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Total shareholders' equity 4,394 4,325
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Total liabilities and shareholders' equity $64,145 $62,080
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COMMON SHAREHOLDERS' EQUITY $4,375 $4,305
COMMON SHARES OUTSTANDING 233,248,508 234,705,237
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</TABLE>
<PAGE> 5
PNC BANK CORP. AND SUBSIDIARIES
Condensed Consolidated Average Balance Sheet
<TABLE>
<CAPTION>
====================================================================================================================================
Three months ended Twelve months ended
December 31 December 31
------------------------------------ -----------------------------------
IN MILLIONS 1994 1993 1994 1993
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<S> <C> <C> <C> <C>
ASSETS
Interest-earning assets
Short-Term investments $771 $757 $808 $575
Securities 22,923 20,428 22,116 20,403
Loans, net of unearned income
Commercial 12,311 11,096 12,051 10,877
Real estate project 1,670 1,770 1,687 1,845
Real estate mortgage 10,236 5,813 9,531 4,390
Consumer 9,061 8,279 8,782 7,974
Other 1,677 925 1,460 873
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Total loans, net of unearned income 34,955 27,883 33,511 25,959
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Other interest-earning assets 524 770 752 403
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Total interest-earning assets 59,173 49,838 57,187 47,340
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Other 3,779 3,172 3,709 2,981
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Total assets $62,952 $53,010 $60,896 $50,321
====================================================================================================================================
LIABILITIES
Interest-bearing liabilities
Deposits $26,943 $23,981 $26,617 $23,072
Borrowed funds 11,642 9,453 11,375 10,373
Notes and debentures 12,593 8,548 11,288 6,486
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Total interest-bearing liabilities 51,178 41,982 49,280 39,931
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Noninterest-bearing deposits 6,466 5,781 6,235 5,370
Other 922 1,119 1,045 1,063
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Total liabilities 58,566 48,882 56,560 46,364
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SHAREHOLDERS' EQUITY 4,386 4,128 4,336 3,957
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Total liabilities and shareholders' equity $62,952 $53,010 $60,896 $50,321
====================================================================================================================================
COMMON SHAREHOLDERS' EQUITY $4,366 $4,107 $4,316 $3,935
====================================================================================================================================
</TABLE>
<PAGE> 6
PNC BANK CORP. AND SUBSIDIARIES
Asset Quality Data
<TABLE>
<CAPTION>
NONPERFORMING ASSETS
==================================================================================================================================
IN MILLIONS 1994 1993
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Nonaccrual loans
Commercial $177 $181
Real estate project 68 91
Real estate mortgage 65 84
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Total nonaccrual loans 310 356
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Restructured loans 9 28
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Total nonperforming loans 319 384
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Foreclosed assets
Real estate project 75 108
Real estate mortgage 25 42
Other 27 20
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Total foreclosed assets 127 170
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Total $446 $554
==================================================================================================================================
</TABLE>
<TABLE>
ALLOWANCE FOR CREDIT LOSSES
==================================================================================================================================
<CAPTION>
Three months ended Twelve months ended
December 31 December 31
------------------------------ ----------------------------
IN MILLIONS 1994 1993 1994 1993
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Beginning balance $1,030 $940 $972 $897
Charge-offs (50) (63) (170) (246)
Recoveries 22 21 75 74
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Net charge-offs (28) (42) (95) (172)
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Provision for credit losses 39 60 204
Acquisitions 35 65 43
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Ending balance $1,002 $972 $1,002 $972
===================================================================================================================================
</TABLE>
