1 EXHIBIT 99 PITTSBURGH, April 17, 1995 - PNC Bank Corp. (NYSE: PNC) today reported 1995 first quarter net income of $125.7 million, or $.54 per fully diluted share, compared with $205.7 million, or $.86 per fully diluted share, a year ago. Return on average assets and return on average common shareholders' equity were .83 percent and 11.71 percent, respectively, and the after-tax profit margin was 20 percent. Thomas H. O'Brien, charirman and chief executive officer, said, "First quarter results were consistent with our expectations and reflect the impact of strategic actions taken to reduce sensitivity to further rate increases and to downsize our securities portfolio. "During the quarter we also continued to make significant progress pursuing other strategic initiatives. We enhanced our asset management capabilities with the addition of BlackRock Financial Management; targeted an attractive customer base with our planned acquisition of Chemical Bank New Jersey; and entered into an agreement with two innovators in the credit card industry that will increase our credit card processing and marketing capabilities." Taxable-equivalent net interest income totaled $392.2 million in the first quarter of 1995 compared with $432.7 million in the fourth quarter of 1994. The net interest margin was 2.72 percent compared with 2.92 percent in the previous quarter. These declines reflect the cost of actions taken in the fourth quarter of 1994 to reduce interest rate sensitivity and 2 higher deposit and borrowing costs. The increase in deposit costs primarily reflects customers shifting balances from lower-rate transaction products to higher-rate alternatives. In the first quarter of 1994, taxable-equivalent net interest income and net interest margin were $505.8 million and 3.68 percent, respectively. Noninterest income, excluding securities transactions, increased $5.9 million to $234.0 million in the first quarter of 1995 compared with the year-earlier period. Investment management and trust income increased 8.5 percent to $79.1 million, primarily due to the BlackRock acquisition. BlackRock is expected to add approximately 20 percent to investment management and trust income on an annualized basis. Service charges, fees and commissions increased 1.9 percent to $89.6 million. Mortgage banking income increased 17.8 percent to $44.7 million, due to higher gains on sales of mortgage servicing. Other noninterest income declined $8.8 million in the comparison primarily due to lower venture capital income. Noninterest expense increased 2.0 percent to $435.6 million for the first quarter of 1995 compared with the year-earlier period. Excluding acquisitions, noninterest expense declined 4.0 percent in the comparison. Asset quality remained strong during the quarter. The allowance for credit losses was $981 million at March 31, 1995 and, as a percent of nonperforming loans, increased to 325 percent compared with 314 percent at year-end 1994 and 270 percent at March 31, 1994. Nonperforming assets totaled $447 million at March 31, 1995 and were flat compared with year-end 1994. The ratio of nonperforming assets to total loans and foreclosed assets was 1.25 percent at March 31, 1995 and December 31, 1994, and 1.56 percent a year ago. Net charge-offs totaled $22 million in the first quarter of 1995 compared with $23 million in the year-earlier period. PNC Bank's total assets declined $2.1 billion during the quarter to $62.1 billion at March 31, 1995 due to a reduction of the securities portfolio. Average loans increased 10.3 percent during the first quarter of 1995 compared with the first quarter 1994. Excluding acquisitions, average loans increased 6.2 percent in the comparison. Average loans for the 3 first quarter represented 61.5 percent of average earning assets compared with 58.0 percent a year ago. At March 31, 1995, the leverage capital ratio was 6.3 percent, and Tier I and total risk-based capital ratios are estimated to be 8.3 percent and 11.2 percent, respectively. These ratios declined from year-end 1994 primarily due to the BlackRock acquisition. Common shares outstanding totaled 229.1 million and 233.2 million at March 31, 1995 and December 31, 1994, respectively, reflecting the impact of the corporation's share repurchase program. During the first quarter of 1995, the corporation announced a definitive agreement to acquire the Chemical Bank franchise in southern and central New Jersey. The transaction includes approximately $3.3 billion of assets and $2.9 billion of retail core deposits and is expected to close by year-end 1995, pending regulatory approvals. The corporation also completed the acquisitions of Indian River Federal Savings Bank, Vero Beach, Florida, and Brentwood Financial Corporation, Cincinnati, Ohio, with combined assets and deposits of $175 million and $140 million, respectively. In April 1995, PNC Bank Corp. announced an agreement with First Data Corporation/Card Services Group and Card Issuer Program Management Corporation to provide marketing expertise and state-of-the-art processing technology designed to increase the corporation's share of the credit card business. PNC Bank Corp., headquartered in Pittsburgh, is one of the largest financial services organizations in the United States. It operates consumer banking offices across Pennsylvania, Delaware, Ohio, Kentucky and Indiana and mortgage offices in 30 states. PNC Bank's major businesses include corporate banking; consumer banking; private banking; mortgage banking; and trust and mutual fund asset management. 4 PNC BANK CORP. AND SUBSIDIARIES Consolidated Financial Highlights =============================================================================================================== March 31 December 31 March 31 Three months ended 1995 1994 1994 ............................................................................................................... FINANCIAL PERFORMANCE (Dollars in thousands, except per share data) Net interest income (taxable-equivalent basis) $392,168 $432,722 $505,804 Net income 125,651 28,530 205,689 Fully diluted earnings per common share .54 .12 .86 Return on average total assets .83 % .18 % 1.41 % Return on average common shareholders' equity 11.71 2.56 19.32 Net interest margin 2.72 2.92 3.68 After-tax profit margin 20.02 5.31 26.91 Overhead ratio 69.42 90.92 55.84 SELECTED AVERAGE BALANCES (In millions) Assets $61,693 $62,952 $58,966 Earning assets 57,448 59,173 55,182 Loans, net of unearned income 35,315 34,955 32,023 Securities 20,903 22,923 21,238 Deposits 33,052 33,409 31,737 Shareholders' equity 4,357 4,386 4,330 =============================================================================================================== ======================================================================================================== March 31 December 31 March 31 1995 1994 1994 ........................................................................................................ SELECTED RATIOS Capital Leverage 6.26 % 6.59 % 7.15 % Common shareholders' equity to total assets 7.04 6.82 6.97 Average common shareholders' equity to average total assets 7.03 7.09 7.31 Asset quality Net charge-offs to average loans .24 .29 .29 Nonperforming loans to total loans .85 .90 1.09 Nonperforming assets to total loans and foreclosed assets 1.25 1.25 1.56 Allowance for credit losses to total loans 2.75 2.83 2.94 Allowance for credit losses to nonperforming loans 324.94 314.17 269.60 Book value per common share As reported $19.08 $18.76 $18.14 Excluding net unrealized securities gains/losses 19.36 19.26 18.53 ======================================================================================================== 5 PNC BANK CORP. AND SUBSIDIARIES Condensed Consolidated Statement of Income ===================================================================================================================== Three months ended March 31 December 31 March 31 In thousands except per share data 1995 1994 1994 ..................................................................................................................... INTEREST INCOME Loans and fees on loans $707,039 $660,119 $572,836 Securities 295,423 343,426 295,808 Other 21,621 20,600 26,460 ..................................................................................................................... Total interest income 1,024,083 1,024,145 895,104 ..................................................................................................................... INTEREST EXPENSE Deposits 292,334 271,099 200,004 Borrowed funds 204,121 160,858 96,737 Notes and debentures 143,654 167,837 101,022 ..................................................................................................................... Total interest expense 640,109 599,794 397,763 ..................................................................................................................... Net interest income 383,974 424,351 497,341 Provision for credit losses 25,015 ..................................................................................................................... Net interest income less provision for credit losses 383,974 424,351 472,326 ..................................................................................................................... NONINTEREST INCOME Investment management and trust 79,140 73,237 72,967 Service charges, fees and commissions 89,614 95,011 87,902 Mortgage banking 44,650 39,274 37,892 Net securities gains (losses) 1,254 (121,024) 30,392 Other 20,645 18,253 29,398 ..................................................................................................................... Total noninterest income 235,303 104,751 258,551 ..................................................................................................................... NONINTEREST EXPENSES Staff expense 201,171 216,673 206,899 Net occupancy and equipment 68,375 80,415 65,282 Other 166,023 191,593 154,665 ..................................................................................................................... Total noninterest expenses 435,569 488,681 426,846 ..................................................................................................................... Income before income taxes 183,708 40,421 304,031 Applicable income taxes 58,057 11,891 98,342 ..................................................................................................................... Net income $125,651 $28,530 $205,689 ..................................................................................................................... EARNINGS PER COMMON SHARE Primary $.54 $.12 $.87 Fully diluted .54 .12 .86 ..................................................................................................................... CASH DIVIDENDS DECLARED PER COMMON SHARE .35 .35 .32 ..................................................................................................................... AVERAGE COMMON SHARES OUTSTANDING Primary 232,589 235,337 236,698 Fully diluted 234,463 237,134 238,592 ===================================================================================================================== 6 PNC BANK CORP. AND SUBSIDIARIES Details of Net Interest Income and Net Interest Margin NET INTEREST INCOME ================================================================================================================= Three months ended Taxable-equivalent basis March 31 December 31 March 31 In thousands 1995 1994 1994 ................................................................................................................. Net interest income before swaps and caps Interest income $1,044,764 $1,026,612 $855,158 Loan fees 16,570 15,011 18,689 Taxable-equivalent adjustment 8,194 8,371 8,463 ................................................................................................................. Total interest income 1,069,528 1,049,994 882,310 Interest expense 636,592 598,060 433,171 ................................................................................................................. Net interest income before swaps and caps 432,936 451,934 449,139 Effect of swaps and caps on Interest income (37,251) (17,478) 21,257 Interest expense 3,517 1,734 (35,408) ................................................................................................................. Total swaps and caps (40,768) (19,212) 56,665 ................................................................................................................. Net interest income $392,168 $432,722 $505,804 ================================================================================================================= NET INTEREST MARGIN ================================================================================================================= Three months ended March 31 December 31 March 31 Taxable-equivalent basis 1995 1994 1994 ................................................................................................................. Net interest spread before swaps and caps Book-basis yield on earning assets 7.29 % 6.91 % 6.23 % Effect of loan fees .11 .10 .14 Taxable-equivalent adjustment .06 .06 .06 ................................................................................................................. Taxable-equivalent yield on earnings assets 7.46 7.07 6.43 Rate on interest-bearing liabilities 5.13 4.64 3.69 ................................................................................................................. Interest rate spread before swaps and caps 2.33 2.43 2.74 Effect of Noninterest-bearing sources .67 .62 .48 Interest rate swaps and caps on Interest income (.25) (.12) .16 Interest expense .03 .01 (.30) ................................................................................................................. Total swaps and caps (.28) (.13) .46 ................................................................................................................. Net interest margin 2.72 % 2.92 % 3.68 % ================================================================================================================= 7 PNC BANK CORP. AND SUBSIDIARIES Details of Noninterest Income and Noninterest Expense NONINTEREST INCOME ============================================================================================================== Three months ended March 31 December 31 March 31 In thousands 1995 1994 1994 .............................................................................................................. Investment management and trust Trust $50,967 $47,402 $49,399 Mutual funds 28,173 25,835 23,568 .............................................................................................................. Total investment management and trust 79,140 73,237 72,967 Service charges, fees and commissions Deposit account and corporate services 39,542 40,064 39,806 Credit card and merchant services 14,175 15,500 12,920 Brokerage 9,243 9,010 8,677 Corporate finance 10,707 11,414 10,679 Other services 15,947 19,023 15,820 .............................................................................................................. Total service charges, fees and commissions 89,614 95,011 87,902 Mortgage banking Servicing 31,123 28,636 29,877 Sales of servicing 12,258 9,235 5,145 Marketing 1,269 1,403 2,870 .............................................................................................................. Total mortgage banking 44,650 39,274 37,892 Other 20,645 18,253 29,398 .............................................................................................................. Total noninterest income before securities transactions 234,049 225,775 228,159 Net securities gains (losses) 1,254 (121,024) 30,392 .............................................................................................................. Total $235,303 $104,751 $258,551 ============================================================================================================== NONINTEREST EXPENSES ============================================================================================================== Three months ended March 31 December 31 March 31 In thousands 1995 1994 1994 .............................................................................................................. Compensation $163,107 $188,507 $164,792 Employee benefits 38,064 28,166 42,107 .............................................................................................................. Total staff expense 201,171 216,673 206,899 Net occupancy 34,229 46,606 32,420 Equipment 34,146 33,809 32,862 Amortization of intangible assets 21,146 22,759 19,560 Federal deposit insurance 18,376 19,157 18,176 Taxes other than income 12,057 10,816 11,096 Other 114,444 138,861 105,833 .............................................................................................................. Total $435,569 $488,681 $426,846 ============================================================================================================== 8 PNC BANK CORP. AND SUBSIDIARIES Condensed Consolidated Balance Sheet ============================================================================================================== March 31 December 31 March 31 In millions, except share data 1995 1994 1994 .............................................................................................................. ASSETS Cash and due from banks $2,699 $2,592 $2,536 Short-term investments 533 809 1,208 Loans held for sale 437 487 996 Securities available for sale 3,137 3,457 9,751 Investment securities, fair value of $16,369, $16,233 and $11,284 17,070 17,464 11,558 Loans, net of unearned income of $236, $240 and $209 35,724 35,407 33,294 Allowance for credit losses (981) (1,002) (980) .............................................................................................................. Net loans 34,743 34,405 32,314 Other 3,475 4,931 2,800 .............................................................................................................. Total assets $62,094 $64,145 $61,163 ============================================================================================================== LIABILITIES Deposits Noninterest-bearing $6,578 $6,992 $6,901 Interest-bearing 26,363 28,019 26,099 .............................................................................................................. Total deposits 32,941 33,011 33,000 Borrowed funds 13,780 11,608 11,696 Notes and debentures 9,599 11,754 10,286 Other 1,384 1,378 1,899 .............................................................................................................. Total liabilities 57,704 59,751 56,881 .............................................................................................................. SHAREHOLDERS' EQUITY Realized shareholders' equity 4,455 4,513 4,374 Net unrealized securities losses (65) (119) (92) .............................................................................................................. Total shareholders' equity 4,390 4,394 4,282 .............................................................................................................. Total liabilities and shareholders' equity $62,094 $64,145 $61,163 ============================================================================================================== COMMON SHAREHOLDERS' EQUITY $4,371 $4,375 $4,262 COMMON SHARES OUTSTANDING 229,122,025 233,248,508 234,953,452 ============================================================================================================== 9 PNC BANK CORP. AND SUBSIDIARIES Condensed Consolidated Average Balance Sheet ============================================================================================================== Three months ended March 31 December 31 March 31 In millions 1995 1994 1994 .............................................................................................................. ASSETS Interest-earning assets Short-term investments $771 $771 $864 Securities available for sale 3,626 5,172 10,191 Investment securities 17,277 17,751 11,047 Loans, net of unearned income Commercial 12,129 12,311 11,349 Real estate project 1,619 1,670 1,723 Real estate mortgage 10,882 10,236 9,055 Consumer 9,023 9,061 8,450 Other 1,662 1,677 1,446 .............................................................................................................. Total loans, net of unearned income 35,315 34,955 32,023 Other interest-earning assets 459 524 1,057 .............................................................................................................. Total interest-earning assets 57,448 59,173 55,182 Other 4,245 3,779 3,784 .............................................................................................................. Total assets $61,693 $62,952 $58,966 ============================================================================================================== LIABILITIES Interest-bearing liabilities Deposits $26,937 $26,943 $25,716 Borrowed funds 13,328 11,642 11,543 Notes and debentures 9,736 12,593 10,142 .............................................................................................................. Total interest-bearing liabilities 50,001 51,178 47,401 Noninterest-bearing deposits 6,115 6,466 6,021 Other 1,220 922 1,214 .............................................................................................................. Total liabilities 57,336 58,566 54,636 .............................................................................................................. SHAREHOLDERS' EQUITY 4,357 4,386 4,330 .............................................................................................................. Total liabilities and shareholders' equity $61,693 $62,952 $58,966 ============================================================================================================== COMMON SHAREHOLDERS' EQUITY $4,338 $4,366 $4,309 ============================================================================================================== 10 PNC BANK CORP. AND SUBSIDIARIES Asset Quality Data NONPERFORMING ASSETS =================================================================================== March 31 December 31 March 31 In millions 1995 1994 1994 ................................................................................... Nonaccrual loans Commercial $129 $143 $193 Real estate project 71 70 88 Real estate mortgage 94 97 74 ................................................................................... Total nonaccrual loans 294 310 355 Restructured loans 8 9 9 ................................................................................... Total nonperforming loans 302 319 364 Foreclosed assets Real estate project 89 77 94 Real estate mortgage 32 26 40 Other 24 24 23 ................................................................................... Total foreclosed assets 145 127 157 ................................................................................... Total $447 $446 $521 =================================================================================== ALLOWANCE FOR CREDIT LOSSES =================================================================================== Three months ended March 31 December 31 March 31 In millions 1995 1994 1994 ................................................................................... Beginning balance $1,002 $1,030 $972 Charge-offs (40) (50) (38) Recoveries 18 22 15 ................................................................................... Net charge-offs (22) (28) (23) Provision for credit losses 25 Acquisitions 1 6 ................................................................................... Ending balance $981 $1,002 $980 ===================================================================================