1 Exhibit 99 MEDIA: - ------ Jonathan Williams (412) 762-4550 INVESTORS: - ---------- William H. Callihan (412) 762-8257 PNC BANK CORP. EARNS $137.0 MILLION IN SECOND QUARTER PITTSBURGH, July 20, 1995 -- PNC Bank Corp. (NYSE: PNC) today reported 1995 second quarter net income of $137.0 million, or $.59 per fully diluted share, compared with $187.8 million, or $.79 per fully diluted share, a year ago. Return on average assets and return on average common shareholders' equity were .89 percent and 12.59 percent, respectively, and the after-tax profit margin was 22 percent. Earnings for the second quarter of 1995 increased approximately 9 percent when compared with first quarter net income of $125.7 million or $.54 per share. Thomas H. O'Brien, chairman and chief executive officer, said "PNC Bank's results for the quarter are consistent with our expectations and reflect strategic actions taken to reduce the corporation's historic reliance on wholesale funding and investment activities. In addition to significantly increasing our market share in Philadelphia and New Jersey, our recently announced merger with Midlantic provides us with a unique opportunity to increase core retail funding and accelerate our balance sheet initiatives." -more- 2 PNC Bank Corp. Earns $137.0 Million in Second Quarter -- Page 2 Taxable-equivalent net interest income totaled $370.6 million in the second quarter of 1995 compared with $501.4 million a year ago. The net interest margin was 2.58 percent compared with 2.72 percent in the first quarter of 1995 and 3.58 percent in the second quarter of 1994. Noninterest income, excluding securities transactions, increased $29.0 million or 12.7 percent to $257.3 million in the second quarter of 1995 compared with the year-earlier period. Investment management and trust income increased $24.0 million to $97.5 million. The BlackRock acquisition contributed approximately $18 million of the increase with the remainder attributable to new business and an increase in the value of managed assets. Discretionary assets totaled $84.1 billion at June 30, 1995 compared with $53.6 billion at June 30, 1994. Service charges, fees and commissions decreased $3.2 million to $89.0 million reflecting the impact of the corporation's credit card alliance which was effective May 1, 1995. Mortgage banking income increased 18.8 percent to $50.7 million compared with $42.7 million in the second quarter of 1994. Gains from originated mortgage servicing rights totaling $12.1 million in the second quarter of 1995 more than offset a modest decline in servicing revenue and lower gains on sales of servicing. During the quarter, the corporation adopted Statement of Financial Accounting Standard No. 122, "Accounting for Mortgage Servicing Rights," which provides for the immediate recognition of the value of originated mortgage servicing rights. Noninterest expense increased 1.9 percent to $426.4 million for the second quarter of 1995 compared with the year-earlier period. Excluding acquisitions, noninterest expense declined 5.5 percent in the comparison, reflecting the corporation's continued emphasis on developing alternative lower-cost delivery systems and reducing the cost of traditional banking operations. Net income for the first six months of 1995 totaled $262.6 million or $1.13 per fully diluted share, compared with $393.5 million and $1.65, respectively, for the first six months of 1994. -more- 3 PNC Bank Corp. Earns $137.0 Million in Second Quarter -- Page 3 The corporation's asset quality remained strong during the quarter. The allowance for credit losses was $961 million at June 30, 1995 and, as a percent of nonperforming loans, was 312 percent compared with 267 percent at June 30, 1994. Nonperforming assets totaled $446 million at June 30, 1995 compared with $544 million at June 30, 1994. The ratio of nonperforming assets to total loans and foreclosed assets was 1.21 percent at June 30, 1995 compared with 1.55 percent a year ago. Net charge-offs totaled $20 million in the second quarter of 1995 compared with $29 million in the year-earlier period. Average assets for the second quarter of 1995 totaled $61.9 billion compared with $59.6 billion in the second quarter last year. Securities declined $2.0 billion on average in the comparison reflecting the strategic initiative to downsize this portfolio. Loan outstandings for the second quarter of 1995 averaged $36.2 billion. Excluding acquisitions, average loans increased 2.4 percent and 8.1 percent compared with the first quarter of 1995 and the second quarter of 1994, respectively. Average loans for the current quarter represented 63.2 percent of average earning assets compared with 58.0 percent a year ago. At June 30, 1995, the leverage capital ratio was 6.29 percent, and Tier I and total risk-based capital ratios are estimated to be 8.1 percent and 11.6 percent, respectively. Common shares outstanding totaled 227.9 million and 233.2 million at June 30, 1995 and December 31, 1994, respectively, reflecting the impact of the corporation's share repurchase program. In July 1995 the corporation entered into a definitive merger agreement with Midlantic Corporation, a regional bank holding company headquartered in Edison, New Jersey. At June 30, 1995, Midlantic had assets and deposits of approximately $13.7 billion and $10.9 billion, respectively. Under terms of the agreement, PNC Bank Corp. will exchange 2.05 shares of its common stock for each share of Midlantic common stock. The transaction is valued at approximately $3 billion and will be accounted for as a pooling of interests. The merger is targeted to be completed by year-end 1995, pending approval by shareholders of both companies and various regulatory agencies. -more- 4 PNC Bank Corp. Earns $137.0 Million in Second Quarter -- Page 4 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. [TABULAR MATERIAL FOLLOWS] 5 Page 5 PNC BANK CORP. AND SUBSIDIARIES Consolidated Financial Highlights Three months ended Six months ended June 30 June 30 ------------------------- --------------------------- 1995 1994 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------------ FINANCIAL PERFORMANCE (Dollars in thousands, except per share data) Net interest income (taxable-equivalent basis) $370,571 $501,363 $762,739 $1,007,167 Net income 136,988 187,845 262,639 393,534 Fully diluted earnings per common share .59 .79 1.13 1.65 Return on average total assets .89% 1.26% .86% 1.34% Return on average common shareholders' equity 12.59 17.70 12.16 18.51 Net interest margin 2.58 3.58 2.65 3.63 After-tax profit margin 21.55 25.75 20.76 26.34 Overhead ratio 67.09 57.33 68.29 56.57 SELECTED AVERAGE BALANCES (In millions) Assets $61,918 $59,625 $61,806 $59,297 Earnings assets 57,220 56,062 57,333 55,625 Loans, net of unearned income 36,191 32,531 35,755 32,278 Securities 19,858 21,859 20,378 21,550 Deposits 33,787 32,252 33,422 31,996 Shareholders' equity 4,369 4,268 4,363 4,299 ================================================================================================================================== June 30 March 31 December 31 June 30 1995 1995 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------------ SELECTED RATIOS Capital Leverage 6.29% 6.26% 6.59% 6.99% Common shareholders' equity to total assets 7.04 7.04 6.82 6.77 Average common shareholders' equity to average total assets 7.03 7.03 7.09 7.22 Asset quality Net charge-offs to average loans .23 .24 .29 .32 Nonperforming loans to total loans .84 .85 .90 1.11 Nonperforming assets to total loans and foreclosed assets 1.21 1.25 1.25 1.55 Allowance for credit losses to total loans 2.62 2.75 2.83 2.97 Allowance for credit losses to nonperforming loans 311.53 324.94 314.17 267.09 Book value per common share As reported $19.38 $19.08 $18.76 $18.37 Excluding net unrealized securities losses 19.56 19.36 19.26 19.02 =================================================================================================================================== -more- 6 PNC BANK CORP. AND SUBSIDIARIES Page 6 Condensed Consolidated Statement of Income Three months ended Six months ended June 30 June 30 -------------------------- --------------------------- In thousands, except per share data 1995 1994 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------------ INTEREST INCOME Loans and fees on loans $737,967 $594,011 $1,445,006 $1,166,847 Securities 283,364 316,647 578,787 612,455 Other 21,308 24,336 42,929 50,796 - ------------------------------------------------------------------------------------------------------------------------------------ Total interest income 1,042,639 934,994 2,066,722 1,830,098 INTEREST EXPENSE Deposits 320,284 217,512 612,618 417,516 Borrowed funds 214,908 110,574 418,867 207,311 Notes and debentures 145,119 113,949 288,935 214,971 - ------------------------------------------------------------------------------------------------------------------------------------ Total interest expense 680,311 442,035 1,320,420 839,798 - ------------------------------------------------------------------------------------------------------------------------------------ Net interest income 362,328 492,959 746,302 990,300 Provision for credit losses 25,030 50,045 - ------------------------------------------------------------------------------------------------------------------------------------ Net interest income less provision for credit losses 362,328 467,929 746,302 940,255 NONINTEREST INCOME Investment management and trust 97,509 73,494 176,649 146,461 Service charges, fees and commissions 88,984 92,205 180,408 180,041 Mortgage banking 50,670 42,658 95,320 80,363 Net securities gains (losses) 7,782 (85) 9,036 30,307 Other 20,089 19,968 40,734 49,619 - ------------------------------------------------------------------------------------------------------------------------------------ Total noninterest income 265,034 228,240 502,147 486,791 NONINTEREST EXPENSE Staff expense 204,590 203,972 406,448 410,871 Net occupancy and equipment 67,909 66,860 136,759 132,142 Other 153,904 147,463 320,575 302,128 - ------------------------------------------------------------------------------------------------------------------------------------ Total noninterest expense 426,403 418,295 863,782 845,141 - ------------------------------------------------------------------------------------------------------------------------------------ Income before income taxes 200,959 277,874 384,667 581,905 Applicable income taxes 63,971 90,029 122,028 188,371 - ------------------------------------------------------------------------------------------------------------------------------------ Net income $136,988 $187,845 $262,639 $393,534 ==================================================================================================================================== EARNINGS PER COMMON SHARE Primary $.59 $.79 $1.13 $1.66 Fully diluted .59 .79 1.13 1.65 CASH DIVIDENDS DECLARED PER COMMON SHARE .35 .32 .70 .64 AVERAGE COMMON SHARES OUTSTANDING Primary 230,178 237,241 231,388 236,974 Fully diluted 231,960 239,086 233,412 238,887 ==================================================================================================================================== -more- 7 PNC BANK CORP. AND SUBSIDIARIES Page 7 Details of Net Interest Income Three months ended Six months ended June 30 June 30 Taxable-equivalent basis ----------------------------- ----------------------------- In thousands 1995 1994 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------------ Net interest income before swaps and caps Interest income $1,065,165 $906,004 $2,109,929 $1,761,162 Loan fees 18,922 16,090 35,492 34,779 Taxable-equivalent adjustment 8,243 8,404 16,437 16,867 - ------------------------------------------------------------------------------------------------------------------------------------ Total interest income 1,092,330 930,498 2,161,858 1,812,808 Interest expense 671,750 468,528 1,308,342 901,699 - ------------------------------------------------------------------------------------------------------------------------------------ Net interest income before swaps and caps 420,580 461,970 853,516 911,109 Effect of swaps and caps on Interest income (41,448) 12,900 (78,699) 34,157 Interest expense 8,561 (26,493) 12,078 (61,901) - ------------------------------------------------------------------------------------------------------------------------------------ Total swaps and caps (50,009) 39,393 (90,777) 96,058 - ------------------------------------------------------------------------------------------------------------------------------------ Net interest income $ 370,571 $501,363 $ 762,739 $1,007,167 ==================================================================================================================================== Three months ended Taxable-equivalent basis June 30 March 31 December 31 September 30 June 30 In thousands 1995 1995 1994 1994 1994 - ------------------------------------------------------------------------------------------------------------------------------------ Net interest income before swaps and caps Interest income $1,065,165 $1,044,764 $1,026,612 $ 978,784 $906,004 Loan fees 18,922 16,570 15,011 19,543 16,090 Taxable-equivalanet adjustment 8,243 8,194 8,371 8,285 8,404 - ------------------------------------------------------------------------------------------------------------------------------------ Total interest income 1,092,330 1,069,528 1,049,994 1,006,612 930,498 Interest expense 671,750 636,592 598,060 527,250 468,528 - ------------------------------------------------------------------------------------------------------------------------------------ Net interest income before swaps and caps 420,580 432,936 451,934 479,362 461,970 Effect of swaps and caps on Interest income (41,448) (37,251) (17,478) 9,242 12,900 Interest expense 8,561 3,517 1,734 (14,636) (26,493) - ------------------------------------------------------------------------------------------------------------------------------------ Total swaps and caps (50,009) (40,768) (19,212) 23,878 39,393 - ------------------------------------------------------------------------------------------------------------------------------------ Net interest income $ 370,571 $ 392,168 $ 432,722 $ 503,240 $501,363 ==================================================================================================================================== -more- 8 PNC BANK CORP. AND SUBSIDIARIES Page 8 Details of Net Interest Margin Three months ended Six months ended June 30 June 30 ----------------------- ---------------------- Taxable-equivalent basis 1995 1994 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------------ Interest rate spread before swaps and caps Book-basis yield on earning assets 7.42% 6.48% 7.36% 6.36% Effect of loan fees .13 .11 .12 .13 Taxable-equivalent adjustment .06 .06 .06 .06 - ------------------------------------------------------------------------------------------------------------------------------------ Taxable-equivalent yield on earning assets 7.61 6.65 7.54 6.55 Rate on interest-bearing liabilities 5.37 3.90 5.25 3.80 - ------------------------------------------------------------------------------------------------------------------------------------ Interest rate spread before swaps and caps 2.24 2.75 2.29 2.75 Effect of Noninterest-bearing sources .69 .52 .68 .50 Interest rate swaps and caps on Interest income (.28) .09 (.27) .12 Interest expense .07 (.22) .05 (.26) - ------------------------------------------------------------------------------------------------------------------------------------ Total swaps and caps (.35) .31 (.32) .38 - ------------------------------------------------------------------------------------------------------------------------------------ Net interest margin 2.58% 3.58% 2.65% 3.63% ==================================================================================================================================== June 30 March 31 December 31 September 30 June 30 Taxable-equivalent basis 1995 1995 1994 1994 1994 - ------------------------------------------------------------------------------------------------------------------------------------ Interest rate spread before swaps and caps Book-basis yield on earnings assets 7.42% 7.29% 6.91% 6.69% 6.48% Effect of loan fees .13 .11 .10 .13 .11 Taxable-equivalanet adjustment .06 .06 .06 .06 .06 - ------------------------------------------------------------------------------------------------------------------------------------ Taxable-equivalent yield on earnings assets 7.61 7.46 7.07 6.88 6.65 Rate on interest-bearing liabilities 5.37 5.13 4.64 4.16 3.90 - ------------------------------------------------------------------------------------------------------------------------------------ Interest rate spread before swaps and caps 2.24 2.33 2.43 2.72 2.75 Effect of Noninterest-bearing sources .69 .67 .62 .55 .52 Interest rate swaps and caps on Interest income (.28) (.25) (.12) .06 .09 Interest expense .07 .03 .01 (.12) (.22) - ------------------------------------------------------------------------------------------------------------------------------------ Total swaps and caps (.35) (.28) (.13) .18 .31 - ------------------------------------------------------------------------------------------------------------------------------------ Net interest margin 2.58% 2.72% 2.92% 3.45% 3.58% ==================================================================================================================================== -more- 9 PNC BANK CORP. AND SUBSIDIARIES Page 9 Details of Noninterest Income NONINTEREST INCOME Three months ended Six months ended June 30 June 30 --------------------------------- ------------------------------- In thousands 1995 1994 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------------ Investment management and trust Trust $ 62,229 $ 49,406 $113,196 $ 98,805 Mutual funds 32,280 24,088 63,453 47,656 - ------------------------------------------------------------------------------------------------------------------------------------ Total investment management and trust 97,509 73,494 176,649 146,461 Service charges, fees and commissions Deposit account and corporate services 38,796 42,484 78,338 82,225 Credit card and merchant services 10,094 13,878 24,269 26,797 Brokerage 10,818 8,545 20,061 17,223 Corporate finance 11,545 10,547 22,252 21,227 Other services 17,731 16,751 35,488 32,569 - ------------------------------------------------------------------------------------------------------------------------------------ Total service charges, fees and commissions 88,984 92,205 180,408 180,041 Mortgage banking Servicing 29,761 30,825 60,884 60,702 Sales of servicing 9,672 11,445 21,930 16,590 Marketing 11,237 388 12,506 3,071 - ------------------------------------------------------------------------------------------------------------------------------------ Total mortgage banking 50,670 42,658 95,320 80,363 Other 20,089 19,968 40,734 49,619 - ------------------------------------------------------------------------------------------------------------------------------------ Total noninterest income before securities transactions 257,252 228,325 493,111 456,484 Net securities gains (losses) 7,782 (85) 9,036 30,307 - ------------------------------------------------------------------------------------------------------------------------------------ Total $265,034 $228,240 $502,147 $486,791 ==================================================================================================================================== Three months ended June 30 March 31 December 31 September 30 June 30 In thousands 1995 1995 1994 1994 1994 - ------------------------------------------------------------------------------------------------------------------------------------ Investment management and trust Trust $ 62,229 $ 50,967 $ 47,402 $ 47,853 $ 49,406 Mutual funds 35,280 28,173 25,835 24,501 24,088 - ------------------------------------------------------------------------------------------------------------------------------------ Total investment management and trust 97,509 79,140 73,237 72,354 73,494 Service charges, fees and commissions Deposit account and corporate services 38,796 39,542 40,064 41,931 42,484 Credit card and merchant services 10,094 14,175 15,500 13,723 13,878 Brokerage 10,818 9,243 9,010 9,306 8,545 Corporate finance 11,545 10,707 11,414 12,075 10,547 Other services 17,731 17,757 19,023 18,059 16,751 - ------------------------------------------------------------------------------------------------------------------------------------ Total service charges, fees and commissions 88,984 91,424 95,011 95,094 92,205 Mortgage banking Servicing 29,761 31,123 28,636 32,439 30,825 Sales of servicing 9,672 12,258 9,235 34,747 11,445 Marketing 11,237 1,269 1,403 11,725 388 - ------------------------------------------------------------------------------------------------------------------------------------ Total mortgage banking 50,670 44,650 39,274 78,911 44,658 Other 20,089 20,645 18,253 28,942 19,968 - ------------------------------------------------------------------------------------------------------------------------------------ Total noninterest income before securities transactions 257,252 235,859 225,775 275,301 228,325 Net securities gains (losses) 7,782 1,254 (121,024) (44,202) (85) - ------------------------------------------------------------------------------------------------------------------------------------ Total $265,034 $237,113 $104,751 $231,099 $228,240 ==================================================================================================================================== -more- 10 PNC BANK CORP. AND SUBSIDIARIES Page 10 Details of Noninterest Expense NONINTEREST EXPENSE Three months ended Six months ended June 30 June 30 -------------------------------- --------------------------------- In thousands 1995 1994 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------------ Compensation $167,100 $164,610 $330,207 $329,402 Employee benefits 37,490 39,362 76,241 81,469 - ------------------------------------------------------------------------------------------------------------------------------------ Total staff expense 204,590 203,972 406,448 410,871 Net occupancy 35,008 34,142 69,712 66,562 Equipment 32,901 32,718 67,047 65,580 Amortization of intangible assets 22,040 18,270 43,186 37,830 Federal deposit insurance 18,273 18,163 36,649 36,339 Taxes other than income 12,348 10,782 24,405 21,878 Other 101,243 100,248 216,335 206,081 - ------------------------------------------------------------------------------------------------------------------------------------ Total $426,403 $418,295 $863,782 $845,141 ==================================================================================================================================== Three months ended June 30 March 31 December 31 September 30 June 30 In thousands 1995 1995 1994 1994 1994 - ------------------------------------------------------------------------------------------------------------------------------------ Compensation $167,100 $163,107 $188,507 $168,433 $164,610 Employee benefits 37,490 38,751 28,166 39,695 39,362 - ------------------------------------------------------------------------------------------------------------------------------------ Total staff expense 204,590 201,858 216,673 208,128 203,972 Net occupancy 35,008 34,704 46,606 34,545 34,142 Equipment 32,901 34,146 33,809 33,335 32,718 Amortization of intangible assets 22,040 21,146 22,759 21,648 18,270 Federal deposit insurance 18,273 18,376 19,157 18,406 18,163 Taxes other than income 12,348 12,057 10,816 11,533 10,782 Other 101,243 115,092 138,861 108,318 100,248 - ------------------------------------------------------------------------------------------------------------------------------------ Total $426,403 $437,379 $488,681 $435,913 $418,295 ==================================================================================================================================== - more - 11 PNC BANK CORP. AND SUBSIDIARIES Page 11 Condensed Consolidated Balance Sheet June 30 December 31 June 30 In millions, except share data 1995 1994 1994 - ----------------------------------------------------------------------------------------------------------------------------------- ASSETS Cash and due from banks $2,612 $2,592 $1,989 Short-term investments 502 809 672 Loans held for sale 773 487 804 Securities available for sale 2,447 3,457 7,236 Investment securities, fair value of $16,434 and $16,233 and $15,233 16,658 17,464 15,971 Loans, net of unearned income of $226, $240 and $218 36,690 35,407 34,860 Allowance for credit losses (961) (1,002) (1,036) - ----------------------------------------------------------------------------------------------------------------------------------- Net loans 35,729 34,405 33,824 Other 4,042 4,931 3,471 - ----------------------------------------------------------------------------------------------------------------------------------- Total assets $62,763 $64,145 $63,967 =================================================================================================================================== LIABILITIES Deposits Noninterest-bearing $ 6,660 $6,992 $6,257 Interest-bearing 28,630 28,019 26,692 - ----------------------------------------------------------------------------------------------------------------------------------- Total deposits 35,290 35,011 32,949 Borrowed funds 12,386 11,608 13,402 Notes and debentures 8,995 11,754 11,437 Other 1,656 1,378 1,830 - ----------------------------------------------------------------------------------------------------------------------------------- Total liabilities 58,327 59,751 59,618 - ----------------------------------------------------------------------------------------------------------------------------------- SHAREHOLDERS' EQUITY Realized shareholders' equity 4,477 4,513 4,503 Net unrealized securities losses (41) (119) (154) - ----------------------------------------------------------------------------------------------------------------------------------- Total shareholders' equity 4,436 4,394 4,349 - ----------------------------------------------------------------------------------------------------------------------------------- Total liabilities and shareholders' equity $62,763 $64,145 $63,967 =================================================================================================================================== COMMON SHAREHOLDERS' EQUITY $4,418 $4,375 $4,329 COMMON SHARES OUTSTANDING 227,915,764 233,248,508 235,660,470 =================================================================================================================================== -more- 12 PNC BANK CORP. AND SUBSIDIARIES Page 12 Condensed Consolidated Average Balance Sheet Three months ended Six months ended June 30 June 30 ------------------------------------ ----------------------------------- In millions 1995 1994 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Interest-earning assets Short-term investments $620 $855 $695 $860 Securities available for sale 2,967 7,804 3,295 8,991 Investment securities 16,891 14,055 17,083 12,559 Loans, net of unearned income Commercial 12,479 12,075 12,305 11,714 Real estate project 1,665 1,736 1,642 1,729 Real estate mortgage 11,383 8,981 11,134 9,018 Consumer 9,005 8,617 9,014 8,534 Other 1,659 1,122 1,660 1,283 - ------------------------------------------------------------------------------------------------------------------------------------ Total loans, net of unearned income 36,191 32,531 35,755 32,278 Other interest-earning assets 551 817 505 937 - ------------------------------------------------------------------------------------------------------------------------------------ Total interest-earning assets 57,220 56,062 57,333 55,625 Other 4,698 3,563 4,473 3,672 - ------------------------------------------------------------------------------------------------------------------------------------ Total assets $61,918 $59,625 $61,806 $59,297 ==================================================================================================================================== LIABILITIES Interest-bearing liabilities Deposits $27,425 $26,128 $27,183 $25,923 Borrowed funds 13,281 10,967 13,302 11,253 Notes and debentures 9,213 11,030 9,475 10,589 - ------------------------------------------------------------------------------------------------------------------------------------ Total interest-bearing liabilities 49,919 48,125 49,960 47,765 Noninterest-bearing deposits 6,362 6,124 6,239 6,073 Other 1,268 1,108 1,244 1,160 - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 57,549 55,357 57,443 54,998 - ------------------------------------------------------------------------------------------------------------------------------------ SHAREHOLDERS' EQUITY 4,369 4,268 4,363 4,299 - ---------------------------------------------------------------------------------------------------------------------------------- Total liabilities and shareholders' equity $61,918 $59,625 $61,806 $59,297 ==================================================================================================================================== COMMON SHAREHOLDERS' EQUITY $4,351 $4,248 $4,344 $4,279 ==================================================================================================================================== Three months ended June 30 March 31 December 31 September 30 June 30 In millions 1995 1995 1994 1994 1994 - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Interest-earning assets Securities available for sale $2,967 $3,626 $5,172 $5,488 $7,804 Investment securities 16,891 17,277 17,751 16,934 14,055 Loans, net of unearned income 36,191 35,315 34,955 34,494 32,531 Other interest-earning assets 1,171 1,230 1,295 1,359 1,672 - ------------------------------------------------------------------------------------------------------------------------------------ Total interest-earning assets 57,220 57,448 59,173 58,275 56,062 Other 4,698 4,245 3,779 3,713 3,563 - ------------------------------------------------------------------------------------------------------------------------------------ Total assets $61,918 $61,693 $62,952 $61,988 $59,625 ==================================================================================================================================== LIABILITIES Interest-bearing liabilities Deposits $27,425 $26,937 $26,943 $27,657 $26,128 Borrowed funds 13,281 13,328 11,642 11,346 10,967 Notes and debentures 9,213 9,736 12,593 11,358 11,030 - ------------------------------------------------------------------------------------------------------------------------------------ Total interest-bearing liabilities 49,919 50,001 51,178 50,361 48,125 Noninterest-bearing deposits 6,362 6,115 6,466 6,325 6,124 Other 1,268 1,220 922 942 1,108 - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 57,549 57,336 58,566 57,628 55,357 - ------------------------------------------------------------------------------------------------------------------------------------ SHAREHOLDERS' EQUITY 4,369 4,357 4,386 4,360 4,268 - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities and shareholders' equity $61,918 $61,693 $62,952 $61,988 $59,625 ==================================================================================================================================== -more- 13 PNC BANK CORP. AND SUBSIDIARIES Page 13 Asset Quality Data ALLOWANCE FOR CREDIT LOSSES Three months ended Six months ended June 30 June 30 ---------------------------- ---------------------------- In millions 1995 1994 1995 1994 - ---------------------------------------------------------------------------------------------------------------------------------- Beginning balance $981 $980 $1,002 $972 Charge-offs (34) (44) (74) (81) Recoveries 14 15 32 30 - ---------------------------------------------------------------------------------------------------------------------------------- Net charge-offs (20) (29) (42) (51) Provision for credit losses 25 50 Acquisitions 60 1 65 - ---------------------------------------------------------------------------------------------------------------------------------- Ending balance $961 $1,036 $961 $1,036 ================================================================================================================================== NONPERFORMING ASSETS June 30 March 31 December 31 June 30 In millions 1995 1995 1994 1994 - ---------------------------------------------------------------------------------------------------------------------------------- Nonaccrual loans Commercial $110 $129 $143 $189 Real estate project 95 71 70 73 Real estate mortgage 96 94 97 122 - ---------------------------------------------------------------------------------------------------------------------------------- Total nonaccrual loans 301 294 310 384 Restructured loans 7 8 9 4 - ---------------------------------------------------------------------------------------------------------------------------------- Total nonperforming loans 308 302 319 388 Foreclosed assets Real estate project 88 89 77 94 Real estate mortgage 29 32 26 34 Other 21 24 24 28 - ---------------------------------------------------------------------------------------------------------------------------------- Total foreclosed assets 138 145 127 156 - ---------------------------------------------------------------------------------------------------------------------------------- Total $446 $447 $446 $544 ================================================================================================================================== ###