<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
APRIL 15, 1997
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED)
PNC BANK CORP.
(Exact name of registrant as specified in its charter)
COMMISSION FILE NUMBER 1-9718
PENNSYLVANIA 25-1435979
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
ONE PNC PLAZA
249 FIFTH AVENUE
PITTSBURGH, PENNSYLVANIA 15222-2707
(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
First Quarter 1997 Financial Results
On April 15, 1997, PNC Bank Corp. ("Corporation") reported results of
operations for the three months ended March 31, 1997. 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 3 of this Form 8-K is
filed herewith.
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: April 15, 1997 By: /s/ Robert L. Haunschild
------------------------------------
Robert L. Haunschild
Senior Vice President and
Chief Financial Officer
2
<PAGE> 3
EXHIBIT INDEX
99 Earnings press release issued by the Corporation on April 15, 1997,
with respect to the results of operations for the three months ended
March 31, 1997, is filed herewith.
3
<PAGE> 1
Exhibit 99
CONTACTS:
MEDIA:
Jonathan Williams
(412) 762-4550
[email protected]
INVESTORS:
William H. Callihan
(412) 762-8257
[email protected]
PNC BANK CORP. REPORTS 16% INCREASE IN EPS
FOR FIRST QUARTER 1997
PITTSBURGH, April 15, 1997 -- PNC Bank Corp. (NYSE: PNC) today
reported first quarter 1997 earnings per share increased 16% to $0.80 per fully
diluted share compared with $0.69 per fully diluted share in the first quarter
of 1996. Net income was $266 million compared with $238 million in the
year-earlier period. Returns on average common shareholders' equity and average
assets were 19.48% and 1.54%, respectively, compared with 16.65% and 1.34% a
year ago.
"Our first quarter performance was in line with expectations," said
Thomas H. O'Brien, chairman and chief executive officer. "The results reflect
strong revenue growth from our national businesses somewhat offset by higher
marketing expenses as we continued to aggressively invest in our AAA
initiative."
HIGHLIGHTS
o Revenue increased 13% in the quarter-to-quarter comparison led by
growth in fee-based businesses.
o Asset management, mutual fund servicing, treasury management and
capital markets revenue all grew in excess of 14%.
o Net interest margin widened 25 basis points to 3.98%.
o Significant investments were made to market products and services
to AAA members nationwide.
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<PAGE> 2
PNC Bank Corp. Reports 16% Increase In EPS For First Quarter 1997 -- Page 2
o Asset quality remained strong. Nonperforming assets continued to
decline and consumer asset quality trends were stable.
o During the first quarter, 12.4 million common shares were
repurchased.
INCOME STATEMENT REVIEW
Taxable-equivalent net interest income increased $21 million to
$637 million for the first quarter of 1997 and net interest margin widened to
3.98% compared with 3.73% in the year-earlier period. These increases primarily
result from a higher-yielding earning asset mix and a lower cost of funds.
Noninterest income increased $104 million to $425 million in the
first quarter of 1997. Asset management fees increased $19 million or 15.5%
primarily due to higher private banking, employee benefits and mutual fund
servicing revenue. Managed assets increased to approximately $115 billion at
March 31, 1997 compared with $103 billion a year ago. Service fees increased
$37 million or 28.5% primarily from growth in deposit and treasury management
services, credit card and capital markets fee income.
Mortgage banking revenue declined primarily due to lower
origination volumes. Mortgage originations totaled $1.1 billion in the first
quarter of 1997 and $1.4 billion in the year-earlier period. At March 31, 1997,
the corporation serviced approximately $40.7 billion of mortgages including
$30.4 billion serviced for others.
Other noninterest income increased $38 million in the comparison
primarily due asset securitization income.
Noninterest expense increased $71 million to $636 million in the
first quarter of 1997 primarily due to $45 million of marketing, servicing and
other costs associated with AAA-related businesses. The remaining increase was
due to higher incentive compensation commensurate with revenue growth, a
special employee appreciation award and the cost of trust preferred securities.
The efficiency ratio was 59.9% for the first quarter of 1997.
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<PAGE> 3
PNC Bank Corp. Reports 16% Increase In EPS For First Quarter 1997 -- Page 3
BALANCE SHEET REVIEW
Total assets were $71.2 billion at March 31, 1997 and $72.7 billion
a year ago. Average earning assets declined $1.9 billion to $63.8 billion,
reflecting a continued reduction of the securities portfolio partially offset
by loan growth. Average securities declined $4.7 billion to $10.1 billion and
represented 15.8% of average earning assets compared with 22.6% a year ago.
Average loans increased $3.3 billion to $51.9 billion and represented 81.4% of
average earning assets compared with 74.0% a year ago. Excluding purchased
credit card portfolios, loans grew at an annual rate of 3.8%.
Average interest-bearing funding sources declined $1.7 billion to
$53.1 billion in the first quarter of 1997 primarily due to a lower level of
deposits. Deposits represented 62.8% of total sources for the first quarter of
1997 compared with 63.5% a year ago.
Shareholders' equity totaled $5.5 billion at March 31, 1997. The
leverage ratio was 7.17% and Tier I and total risk-based capital ratios are
estimated to be 7.7% and 11.1%, respectively. During the first quarter of 1997,
12.4 million common shares were repurchased. Subsequent to quarter end, the
board of directors authorized the repurchase of up to 15 million additional
shares of common stock through March 31, 1998.
Asset quality remained strong. Nonperforming assets declined to $429
million at March 31, 1997, compared with $540 million at March 31, 1996. The
ratio of nonperforming assets to total loans and foreclosed assets was 0.82% at
March 31, 1997 and 1.10% a year ago.
The allowance for credit losses was $1.1 billion at March 31, 1997
and represented 346% of nonperforming loans compared with 329% a year ago. Net
charge-offs increased to $61 million or 0.48% of average loans in the first
quarter of 1997 compared with $34 million and 0.28%, respectively, in the
year-earlier period. The increase was in line with expectations and was due
primarily to charge-offs associated with purchased credit card portfolios.
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<PAGE> 4
PNC Bank Corp. Reports 16% Increase In EPS For First Quarter 1997 -- Page 4
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. PNC Bank Corp.'s major businesses include consumer banking,
corporate banking, mortgage banking, real estate banking and asset management.
Visit PNC Bank on the World Wide Web at www.pncbank.com
[TABULAR MATERIAL FOLLOWS]
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<PAGE> 5
PNC BANK CORP. AND SUBSIDIARIES Page 5
Consolidated Financial Highlights
<TABLE>
<CAPTION>
March 31 December 31 March 31
As of or for the three months ended 1997 1996 1996
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FINANCIAL PERFORMANCE (dollars in thousands, except per share data)
Revenue
Net interest income (taxable-equivalent basis) $637,283 $625,637 $616,108
Noninterest income 425,116 388,579 321,562
Total revenue 1,062,399 1,014,216 937,670
Net income 266,309 271,903 238,320
Per common share
Fully diluted earnings .80 .79 .69
Book value 16.45 17.13 16.88
Cash dividends declared .37 .37 .35
SELECTED RATIOS
Performance ratios
Return on average
Common shareholders' equity 19.48% 18.58% 16.65%
Assets 1.54 1.56 1.34
Net interest margin 3.98 3.92 3.73
After-tax profit margin 25.07 26.81 25.42
Efficiency ratio 59.88 57.83 60.32
Capital ratios
Leverage 7.17 7.70 6.90
Common shareholders' equity to assets 7.25 7.58 7.94
Asset quality ratios
Net charge-offs to average loans .48 .45 .28
Nonperforming assets to loans and foreclosed assets .82 .88 1.10
Allowance for credit losses to loans 2.13 2.25 2.51
Allowance for credit losses to nonperforming loans 346.11 334.40 328.88
AVERAGE BALANCES (in millions)
Assets $70,301 $69,536 $71,733
Earning assets 63,825 63,322 65,705
Loans, net of unearned income 51,922 49,973 48,625
Securities 10,089 11,569 14,818
Deposits 44,133 44,832 45,553
Shareholders' equity 5,758 6,017 5,764
Common shareholders' equity 5,442 5,727 5,747
PERIOD-END BALANCES (in millions)
Assets 71,166 73,260 72,668
Earning assets 64,255 65,439 66,041
Loans, net of unearned income 52,575 51,798 48,800
Securities 9,593 11,917 14,692
Deposits 44,902 45,676 45,621
Shareholders' equity 5,478 5,869 5,786
Common shareholders' equity 5,162 5,553 5,769
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</TABLE>
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<PAGE> 6
PNC BANK CORP. AND SUBSIDIARIES Page 6
Consolidated Statement of Income
<TABLE>
<CAPTION>
March 31 December 31 March 31
Three months ended - in thousands, except per share data 1997 1996 1996
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INTEREST INCOME
Loans and fees on loans $1,055,908 $1,011,871 $980,836
Securities 156,205 181,264 237,442
Other 30,043 30,490 37,060
---------------------------------------
Total interest income 1,242,156 1,223,625 1,255,338
INTEREST EXPENSE
Deposits 346,155 354,985 370,983
Borrowed funds 266,076 250,906 277,498
---------------------------------------
Total interest expense 612,231 605,891 648,481
---------------------------------------
Net interest income 629,925 617,734 606,857
Provision for credit losses 10,000
---------------------------------------
Net interest income less provision for credit losses 619,925 617,734 606,857
NONINTEREST INCOME
Asset management 139,572 129,048 120,877
Service fees 167,421 158,045 130,269
Mortgage banking 32,045 47,532 35,982
Other 69,652 46,399 31,491
---------------------------------------
Total noninterest income before net securities gains 408,690 381,024 318,619
Net securities gains 16,426 7,555 2,943
---------------------------------------
Total noninterest income 425,116 388,579 321,562
NONINTEREST EXPENSE
Staff expense 302,701 269,233 278,657
Net occupancy and equipment 89,284 92,955 93,283
Amortization 29,831 36,701 23,664
Other 214,388 187,601 170,042
---------------------------------------
Total noninterest expense 636,204 586,490 565,646
Income before income taxes 408,837 419,823 362,773
Applicable income taxes 142,528 147,920 124,453
---------------------------------------
Net income $266,309 $271,903 $238,320
- ----------------------------------------------------------------------------------------------------------------------------------
Net Income Applicable to Common Shareholders $262,541 $268,662 $239,179
EARNINGS PER COMMON SHARE
Primary $.81 $.80 $.69
Fully diluted .80 .79 .69
CASH DIVIDENDS DECLARED PER COMMON SHARE .37 .37 .35
AVERAGE COMMON SHARES OUTSTANDING
Primary 323,972 334,428 342,872
Fully diluted 327,917 338,707 347,367
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</TABLE>
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<PAGE> 7
PNC BANK CORP. AND SUBSIDIARIES Page 7
Details of Net Interest Income and Net Interest Margin
<TABLE>
<CAPTION>
NET INTEREST INCOME
Taxable-equivalent basis March 31 December 31 September 30 June 30 March 31
Three months ended - in thousands 1997 1996 1996 1996 1996
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Interest income
Loans $1,061,535 $1,017,982 $985,235 $978,528 $987,414
Securities 157,870 183,013 209,526 234,618 240,052
Other interest-earning assets 30,109 30,533 29,877 39,142 37,123
-----------------------------------------------------------------
Total interest income 1,249,514 1,231,528 1,224,638 1,252,288 1,264,589
Interest expense
Deposits 346,155 354,985 350,912 351,891 370,983
Borrowed funds 266,076 250,906 256,788 280,471 277,498
-----------------------------------------------------------------
Total interest expense 612,231 605,891 607,700 632,362 648,481
-----------------------------------------------------------------
Net interest income $637,283 $625,637 $616,938 $619,926 $616,108
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
NET INTEREST MARGIN
Taxable-equivalent basis March 31 December 31 September 30 June 30 March 31
Three months ended 1997 1996 1996 1996 1996
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Rates earned/paid
Yield on earning assets
Loans 8.20% 8.07% 8.01% 7.94% 8.10%
Securities 6.27 6.32 6.39 6.37 6.48
Other interest-earning assets 6.68 6.84 6.87 6.47 6.58
-----------------------------------------------------------------
Total yield on earning assets 7.86 7.71 7.64 7.53 7.69
Rate on interest-bearing liabilities
Deposits 4.06 4.05 4.01 4.00 4.16
Borrowed funds 5.76 5.79 5.77 5.67 5.86
-----------------------------------------------------------------
Total rate on interest-bearing liabilities 4.66 4.62 4.60 4.59 4.75
-----------------------------------------------------------------
Interest rate spread 3.20 3.09 3.04 2.94 2.94
Impact of noninterest-bearing sources .78 .83 .81 .78 .79
-----------------------------------------------------------------
Net interest margin 3.98% 3.92% 3.85% 3.72% 3.73%
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</TABLE>
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<PAGE> 8
PNC BANK CORP. AND SUBSIDIARIES Page 8
Details of Noninterest Income and Noninterest Expense
<TABLE>
<CAPTION>
NONINTEREST INCOME
March 31 December 31 September 30 June 30 March 31
Three months ended - in thousands 1997 1996 1996 1996 1996
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Asset management
Asset management and trust $106,899 $97,588 $92,569 $94,269 $93,428
Mutual fund servicing 32,673 31,460 29,730 30,246 27,449
----------------------------------------------------------------
Total asset management 139,572 129,048 122,299 124,515 120,877
Service fees
Deposit 80,858 77,571 74,104 72,403 65,518
Brokerage 13,242 12,392 12,432 15,344 13,642
Consumer 17,297 19,246 16,602 14,370 13,458
Corporate finance and capital markets 16,592 16,449 19,645 16,106 13,415
Credit card and merchant services 19,104 14,903 5,656 282 8,918
Insurance 9,146 8,706 7,712 6,872 6,772
Other 11,182 8,778 8,295 8,221 8,546
----------------------------------------------------------------
Total service fees 167,421 158,045 144,446 133,598 130,269
Mortgage banking
Servicing 27,449 30,064 29,361 30,443 29,038
Marketing 3,421 8,022 4,339 4,683 6,594
Sale of servicing 1,175 9,446 700 632 350
----------------------------------------------------------------
Total mortgage banking 32,045 47,532 34,400 35,758 35,982
Other 69,652 46,399 39,507 38,810 31,491
----------------------------------------------------------------
Total noninterest income before net securities gains 408,690 381,024 340,652 332,681 318,619
Net securities gains 16,426 7,555 7,722 3,904 2,943
----------------------------------------------------------------
Total $425,116 $388,579 $348,374 $336,585 $321,562
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
NONINTEREST EXPENSE
March 31 December 31 September 30 June 30 March 31
Three months ended - in thousands 1997 1996 1996 1996 1996
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Compensation $244,695 $234,690 $232,161 $234,542 $228,233
Employee benefits 58,006 34,543 45,600 49,739 50,424
----------------------------------------------------------------
Total staff expense 302,701 269,233 277,761 284,281 278,657
Net occupancy 47,240 49,681 47,530 49,192 50,572
Equipment 42,044 43,274 42,699 42,990 42,711
Goodwill amortization 13,268 15,118 13,244 13,244 12,694
Other amortization 16,563 21,583 15,768 14,818 10,970
Taxes other than income 15,035 12,360 12,972 13,391 14,630
Federal deposit insurance 2,115 (3,720) 38,324 3,435 3,190
Distributions on mandatorily redeemable capital securities of
subsidiary trust 6,956 1,391
Other 190,282 177,570 147,094 142,971 152,222
----------------------------------------------------------------
Total $636,204 $586,490 $595,392 $564,322 $565,646
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</TABLE>
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<PAGE> 9
PNC BANK CORP. AND SUBSIDIARIES Page 9
Consolidated Balance Sheet
<TABLE>
<CAPTION>
March 31 December 31 March 31
Dollars in millions, except par values 1997 1996 1996
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Cash and due from banks $3,096 $4,016 $3,251
Short-term investments 702 774 1,170
Loans held for sale 1,375 941 1,369
Securities available for sale 9,593 11,917 14,692
Loans, net of unearned income of $387, $385 and $380 52,575 51,798 48,800
Allowance for credit losses (1,119) (1,166) (1,225)
---------------------------------------
Net loans 51,456 50,632 47,575
Other 4,944 4,980 4,611
---------------------------------------
Total assets $71,166 $73,260 $72,668
---------------------------------------
LIABILITIES
Deposits
Noninterest-bearing $9,971 $10,937 $9,899
Interest-bearing 34,931 34,739 35,722
---------------------------------------
Total deposits 44,902 45,676 45,621
Borrowed funds
Bank notes and senior debt 8,743 8,005 7,995
Federal funds purchased 2,126 2,797 3,434
Repurchase agreements 531 645 2,754
Other borrowed funds 5,796 6,800 3,911
Subordinated debt 1,351 1,357 1,358
---------------------------------------
Total borrowed funds 18,547 19,604 19,452
Other 1,889 1,761 1,809
---------------------------------------
Total liabilities 65,338 67,041 66,882
Mandatorily Redeemable Capital Securities of Subsidiary Trust 350 350
SHAREHOLDERS' EQUITY
Preferred stock 7 7 1
Common stock 1,735 1,726 1,709
Capital surplus 984 939 563
Retained earnings 4,218 4,075 3,689
Deferred benefit expense (60) (60) (77)
Net unrealized securities losses (137) (67) (98)
Common stock held in treasury (1,269) (751) (1)
---------------------------------------
Total shareholders' equity 5,478 5,869 5,786
---------------------------------------
Total liabilities and shareholders' equity $71,166 $73,260 $72,668
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</TABLE>
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<PAGE> 10
PNC BANK CORP. AND SUBSIDIARIES Page 10
Consolidated Balance Sheet Data
<TABLE>
<CAPTION>
CONSOLIDATED AVERAGE BALANCE SHEET
March 31 December 31 September 30 June 30 March 31
Three months ended - in millions 1997 1996 1996 1996 1996
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Interest-earning assets
Securities $10,089 $11,569 $13,097 $14,740 $14,818
Loans, net of unearned income
Consumer
Credit card 3,043 1,683 1,007 979 986
Other consumer 11,827 12,084 12,047 12,264 12,384
-----------------------------------------------------------------
Total consumer 14,870 13,767 13,054 13,243 13,370
Residential mortgage 12,781 12,361 12,325 11,883 11,619
Commercial 17,916 17,584 17,049 17,190 16,806
Commercial real estate 4,591 4,630 4,712 4,831 4,885
Other 1,764 1,631 1,573 2,044 1,945
-----------------------------------------------------------------
Total loans, net of unearned income 51,922 49,973 48,713 49,191 48,625
Other interest-earning assets 1,814 1,780 1,735 2,425 2,262
-----------------------------------------------------------------
Total interest-earning assets 63,825 63,322 63,545 66,356 65,705
Noninterest-earning assets 6,476 6,214 6,001 6,084 6,028
-----------------------------------------------------------------
Total assets $70,301 $69,536 $69,546 $72,440 $71,733
-----------------------------------------------------------------
LIABILITIES
Interest-bearing liabilities
Deposits $34,533 $34,829 $34,794 $35,383 $35,872
Borrowed funds 18,594 17,110 17,558 19,720 18,891
-----------------------------------------------------------------
Total interest-bearing liabilities 53,127 51,939 52,352 55,103 54,763
Noninterest-bearing deposits 9,600 10,003 9,922 9,996 9,681
Other 1,466 1,501 1,506 1,574 1,525
-----------------------------------------------------------------
Total liabilities 64,193 63,443 63,780 66,673 65,969
Mandatorily Redeemable Capital Securities of Subsidiary Trust 350 76
SHAREHOLDERS' EQUITY 5,758 6,017 5,766 5,767 5,764
-----------------------------------------------------------------
Total liabilities and shareholders' equity $70,301 $69,536 $69,546 $72,440 $71,733
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</TABLE>
<TABLE>
<CAPTION>
LOAN PORTFOLIO
March 31 December 31 September 30 June 30 March 31
Period ended - in millions 1997 1996 1996 1996 1996
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Consumer
Credit card $3,345 $2,776 $1,077 $988 $975
Other consumer 11,356 12,092 12,264 12,190 12,591
Residential mortgage 13,056 12,703 12,642 12,139 11,620
Commercial 18,517 18,062 17,484 17,296 16,950
Commercial real estate
Commercial mortgage 2,397 2,467 2,544 2,644 2,737
Real estate project 2,137 2,157 2,090 2,193 2,137
Other 2,154 1,926 1,689 2,131 2,170
-----------------------------------------------------------------
Total loans 52,962 52,183 49,790 49,581 49,180
Unearned income (387) (385) (347) (358) (380)
-----------------------------------------------------------------
Loans, net of unearned income $52,575 $51,798 $49,443 $49,223 $48,800
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</TABLE>
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<PAGE> 11
PNC BANK CORP. AND SUBSIDIARIES Page 11
Asset Quality Data
<TABLE>
<CAPTION>
ALLOWANCE FOR CREDIT LOSSES
March 31 December 31 September 30 June 30 March 31
Three months ended - in millions 1997 1996 1996 1996 1996
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Beginning balance $1,166 $1,152 $1,189 $1,225 $1,259
Charge-offs
Consumer
Credit card (46) (23) (16) (14) (13)
Other consumer (31) (28) (23) (24) (26)
-----------------------------------------------------------------
Total consumer (77) (51) (39) (38) (39)
Residential mortgage (2) (2) (3) (2) (2)
Commercial (10) (17) (9) (17) (10)
Commercial real estate (1) (9) (4) (1) (4)
-----------------------------------------------------------------
Total charge-offs (90) (79) (55) (58) (55)
Recoveries
Consumer
Credit card 7 2 2 2 1
Other consumer 9 9 8 10 8
-----------------------------------------------------------------
Total consumer 16 11 10 12 9
Residential mortgage 1 1 1
Commercial 9 7 7 6 9
Commercial real estate 3 3 1 4 2
-----------------------------------------------------------------
Total recoveries 29 22 18 22 21
-----------------------------------------------------------------
Net charge-offs (61) (57) (37) (36) (34)
Provision for credit losses 10
Acquisitions 3 71
-----------------------------------------------------------------
Ending balance $1,118 $1,166 $1,152 $1,189 $1,225
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</TABLE>
<TABLE>
<CAPTION>
NONPERFORMING ASSETS
March 31 December 31 September 30 June 30 March 31
Period ended - in millions 1997 1996 1996 1996 1996
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Nonaccrual loans
Commercial $135 $156 $176 $169 $141
Commercial real estate
Commercial mortgage 113 109 118 127 116
Real estate project 24 25 21 30 40
Consumer 5 6 5 6 7
Residential mortgage 45 51 54 46 51
-----------------------------------------------------------------
Total nonaccrual loans 322 347 374 378 355
Restructured loans 1 2 3 3 17
-----------------------------------------------------------------
Total nonperforming loans 323 349 377 381 372
Foreclosed assets
Commercial real estate 66 71 79 85 98
Residential mortgage 24 22 22 21 26
Other 16 17 23 22 44
-----------------------------------------------------------------
Total foreclosed assets 106 110 124 128 168
-----------------------------------------------------------------
Total nonperforming assets $429 $459 $501 $509 $540
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
