1
Exhibit 99
CONTACTS:
MEDIA:
- ------
Jonathan Williams
(412) 762-4550
pubrela@pncmail.com
INVESTORS:
- ----------
William H. Callihan
(412) 762-8257
invrela@pncmail.com
PNC BANK CORP. REPORTS EPS OF $0.83
FOR THE THIRD QUARTER 1997
PITTSBURGH, Oct. 15, 1997 -- PNC Bank Corp. (NYSE: PNC) today
reported third quarter 1997 earnings of $0.83 per fully diluted share compared
with $0.68 per fully diluted share in the third quarter of 1996. Net income was
$262 million compared with $234 million in the year-earlier period. Returns on
average common shareholders' equity and average assets were 20.11% and 1.47%,
respectively, compared with 16.16% and 1.34% in the prior-year quarter.
Results for 1996 include a charge for the one-time special
assessment to recapitalize the Savings Association Insurance Fund ("SAIF").
Excluding the SAIF assessment, earnings totaled $256 million or $0.75 per fully
diluted share for the third quarter of 1996.
"Our third quarter results reflect continuing progress in the
strategic transition of our organization," said Thomas H. O'Brien, chairman and
chief executive officer. "We have demonstrated ongoing discipline in managing
our traditional banking franchise while investing heavily in national,
fee-driven businesses such as Asset Management, Capital Markets and Treasury
Management. Noninterest income from these and other businesses now contributes
41% of total revenues."
-more-
2
PNC Bank Corp. Reports EPS Of $0.83 For The Third Quarter 1997--Page 2
HIGHLIGHTS
* Revenue increased 11% in the quarter-to-quarter comparison as the
net interest margin widened to 3.89%.
* Revenues from fee-based businesses grew 24% in the
quarter-to-quarter comparison.
* Loans outstanding to AAA members totaled $2.2 billion and
positively impacted net interest margin during the third
quarter.
* Asset quality remained strong. Nonperforming assets were 0.73% of
loans and foreclosed assets at Sept. 30, 1997, declining $48
million during the quarter and $107 million since last year. Net
charge-offs were 0.54% of average loans.
* On Oct. 2, 1997, the board of directors approved a 5.4% increase
in the fourth quarter dividend to $0.39 per common share.
INCOME STATEMENT REVIEW
Taxable-equivalent net interest income increased $10 million to
$627 million for the third quarter of 1997 and the net interest margin widened
to 3.89% compared with 3.85% in the year-earlier period. These increases
primarily resulted from a higher-yielding earning asset mix, which more than
offset the cost of common share repurchases. Compared with the second quarter
of 1997, net interest income increased $7 million and net interest margin was 5
basis points higher primarily due to the expiration of lower introductory
credit card rates.
The provision for credit losses was $20 million for the third
quarter of 1997. No provision was recorded in the prior-year quarter.
Noninterest income increased $97 million to $446 million in the
third quarter of 1997 compared with $348 million in the year-earlier period.
Growth in investment advisory, private banking and mutual fund servicing
contributed to a $29 million or 23% increase in asset management fees. Managed
assets increased to approximately $127 billion at Sept. 30, 1997 compared with
$105 billion a year ago. Service fees increased $31 million or 21% primarily
from growth in credit card, treasury management and consumer services.
-more-
3
PNC Bank Corp. Reports EPS Of $0.83 For The Third Quarter 1997--Page 3
Mortgage banking revenue grew primarily due to higher marketing
gains. Mortgage originations totaled $1.7 billion in the third quarter of 1997
compared with $1.3 billion in the year-earlier period. At Sept. 30, 1997, the
corporation serviced approximately $41.0 billion of mortgages, including $31.3
billion serviced for others.
Other noninterest income increased $36 million in the comparison
primarily due to higher venture capital and asset securitization income.
Noninterest expense increased $43 million to $639 million in the
third quarter of 1997 largely due to $28 million of incremental costs
associated with AAA and credit card-related initiatives. The remaining increase
was attributable to higher incentive compensation commensurate with revenue
growth and the cost of trust preferred capital securities. The efficiency ratio
improved to 59.5% for the third quarter of 1997 compared with 61.7% a year ago.
BALANCE SHEET REVIEW
Total assets were $71.8 billion at Sept. 30, 1997. Average earning
assets were substantially unchanged at $64.0 billion as loan growth was offset
by continued securities portfolio reduction. Average securities declined $4.9
billion to $8.2 billion and represented 12.8% of average earning assets
compared with 20.6% a year ago. Average loans grew approximately 9% to $53.2
billion, a $4.5 billion increase from the prior-year quarter. Growth in credit
cards, residential mortgages and commercial loans were partially offset by
reductions in indirect lending and the impact of loan securitizations.
Loans represented 83.2% of average earning assets compared with 76.7% a
year ago.
Average interest-bearing funding increased $1.1 billion to $53.4
billion in the third quarter of 1997. Deposits represented 63.2% of total
sources of funds for the third quarter of 1997 compared with 64.3% a year ago.
During the third quarter of 1997, the corporation further
diversified its funding base by initiating a $2.5 billion Euro medium-term bank
note program. The corporation issued $500 million of bank notes under this
program subsequent to quarter end.
-more-
4
PNC Bank Corp. Reports EPS Of $0.83 For The Third Quarter 1997--Page 4
Shareholders' equity totaled $5.5 billion at Sept. 30, 1997. The
leverage ratio was 7.5% and Tier I and total risk-based capital ratios are
estimated to be 7.8% and 11.5%, respectively. During the third quarter of
1997, the corporation repurchased 3.3 million common shares. On Oct. 2, 1997,
the board of directors approved a 5.4% increase in the common dividend to $0.39
per share.
Nonperforming assets declined to $394 million at Sept. 30, 1997
compared with $442 million at June 30, 1997 and $501 million at Sept. 30, 1996.
The ratio of nonperforming assets to total loans and foreclosed assets was
0.73% at Sept. 30, 1997, 0.83% at June 30, 1997 and 1.01% a year ago.
The allowance for credit losses was $1.0 billion at Sept. 30, 1997
and represented 324% of nonperforming loans compared with 306% a year ago. Net
charge-offs were $73 million or 0.54% of average loans in the third quarter of
1997 compared with $37 million and 0.30%, respectively, in the year-earlier
period. The increase was primarily associated with higher credit card
outstandings.
YEAR TO DATE RESULTS
Earnings per fully diluted share were $2.43 for the first nine months
of 1997 compared with $2.08 for 1996. Net income increased 9% to $787 million
for the first nine months of 1997 compared with $720 million a year ago.
Returns on average common shareholders' equity and average assets were 19.93%
and 1.49%, respectively, compared with 16.71% and 1.35%, respectively, for the
first nine months of 1996. Excluding the one-time SAIF assessment, earnings for
the first nine months of 1996 totaled $743 million or $2.15 per fully diluted
share.
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 businesses include consumer banking, private
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]
5
PNC BANK CORP. AND SUBSIDIARIES Page 5
Consolidated Financial Highlights
Three months ended Nine months ended
September 30 September 30
-------------------------------------------------------------
1997 1996 1997 1996
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL PERFORMANCE (in thousands, except per share data)
Revenue
Net interest income (taxable-equivalent basis) $627,431 $616,938 $1,885,295 $1,852,972
Noninterest income 445,650 348,374 1,304,173 1,006,521
Total revenue 1,073,081 965,312 3,189,468 2,859,493
Net income 261,595 233,953 786,979 720,323
Per common share
Fully diluted earnings .83 .68 2.43 2.08
Cash dividends declared .37 .35 1.11 1.05
SELECTED RATIOS
Return on
Average common shareholders' equity 20.11% 16.16% 19.93% 16.71%
Average assets 1.47 1.34 1.49 1.35
Net interest margin 3.89 3.85 3.91 3.77
After-tax profit margin 24.38 24.24 24.67 25.19
Efficiency ratio 59.51 61.68 60.00 60.34
Net charge-offs to average loans .54 .30 .49 .29
September 30 June 30 December 31 September 30
1997 1997 1996 1996
- ------------------------------------------------------------------------------------------------------------------------------------
BALANCE SHEET DATA (in millions)
Assets $71,828 $71,973 $73,260 $69,662
Earning assets 64,208 64,297 65,439 62,533
Loans, net of unearned income 53,651 53,497 51,798 49,443
Securities 8,000 8,396 11,917 11,243
Deposits 44,788 45,216 45,676 45,430
Borrowed funds 19,052 19,066 19,604 16,650
Shareholders' equity 5,476 5,384 5,869 5,798
Common shareholders' equity 5,161 5,068 5,553 5,781
CAPITAL RATIOS
Leverage 7.46% 7.35% 7.70% 7.18%
Common shareholders' equity to assets 7.18 7.04 7.58 8.30
ASSET QUALITY RATIOS
Nonperforming assets to loans and foreclosed assets .73 .83 .88 1.01
Allowance for credit losses to loans 1.91 2.01 2.25 2.33
Allowance for credit losses to nonperforming loans 324.25 310.34 334.40 306.11
Book value per common share $16.92 $16.51 $17.13 $17.23
====================================================================================================================================
-more-
6
PNC BANK CORP. AND SUBSIDIARIES Page 6
Consolidated Statement of Income
Three months ended Nine months ended
September 30 September 30
--------------------------------------------------------
In thousands, except per share data 1997 1996 1997 1996
- -------------------------------------------------------------------------------------------------------------------------------
INTEREST INCOME
Loans and fees on loans $1,101,508 $979,050 $3,236,193 $2,931,715
Securities 125,347 207,729 420,587 677,422
Other 43,489 29,851 112,880 105,973
------------ ------------ ------------ -------------
Total interest income 1,270,344 1,216,630 3,769,660 3,715,110
INTEREST EXPENSE
Deposits 372,860 350,912 1,087,015 1,073,786
Borrowed funds 277,567 256,788 819,628 814,757
------------ ------------ ------------ -------------
Total interest expense 650,427 607,700 1,906,643 1,888,543
------------ ------------ ------------ -------------
Net interest income 619,917 608,930 1,863,017 1,826,567
Provision for credit losses 20,000 45,000
------------ ------------ ------------ -------------
Net interest income less provision for credit losses 599,917 608,930 1,818,017 1,826,567
NONINTEREST INCOME
Asset management 150,805 122,299 436,395 367,691
Service fees 175,146 144,446 519,664 408,313
Mortgage banking 46,551 34,400 110,745 106,140
Other 75,805 39,507 210,230 109,808
------------ ------------ ------------ -------------
Total noninterest income before net securities gains (losses) 448,307 340,652 1,277,034 991,952
Net securities gains (losses) (2,657) 7,722 27,139 14,569
------------ ------------ ------------ -------------
Total noninterest income 445,650 348,374 1,304,173 1,006,521
NONINTEREST EXPENSE
Staff expense 298,974 277,761 895,836 840,699
Net occupancy and equipment 90,704 90,229 271,769 275,694
Amortization 48,459 29,012 117,817 80,738
Other 187,229 198,390 598,157 528,229
Distributions on capital securities 13,192 30,015
------------ ------------ ------------ -------------
Total noninterest expense 638,558 595,392 1,913,594 1,725,360
Income before income taxes 407,009 361,912 1,208,596 1,107,728
Applicable income taxes 145,414 127,959 421,617 387,405
------------ ------------ ------------ -------------
Net income $261,595 $233,953 $786,979 $720,323
- -------------------------------------------------------------------------------------------------------------------------------
Net income applicable to common shareholders $257,813 $234,803 $775,649 $722,897
EARNINGS PER COMMON SHARE
Primary $.83 $.69 $2.46 $2.10
Fully diluted .83 .68 2.43 2.08
CASH DIVIDENDS DECLARED PER COMMON SHARE .37 .35 1.11 1.05
AVERAGE COMMON SHARES OUTSTANDING
Primary 308,049 340,535 314,603 342,143
Fully diluted 312,253 345,173 319,040 346,958
===============================================================================================================================
-more-
7
PNC BANK CORP. AND SUBSIDIARIES Page 7
Details of Net Interest Income
Three months ended Nine months ended
NET INTEREST INCOME September 30 September 30
Taxable-equivalent basis --------------------------------------------------------
In thousands 1997 1996 1997 1996
- -------------------------------------------------------------------------------------------------------------------------------
Interest income
Loans $1,107,250 $985,235 $3,253,317 $2,951,177
Securities 127,053 209,526 425,541 684,196
Other interest-earning assets 43,555 29,877 113,080 106,142
------------ ------------ ------------ -------------
Total interest income 1,277,858 1,224,638 3,791,938 3,741,515
Interest expense
Deposits 372,860 350,912 1,087,015 1,073,786
Borrowed funds 277,567 256,788 819,628 814,757
------------ ------------ ------------ -------------
Total interest expense 650,427 607,700 1,906,643 1,888,543
------------ ------------ ------------ -------------
Net interest income $627,431 $616,938 $1,885,295 $1,852,972
===============================================================================================================================
Taxable-equivalent basis September 30 June 30 March 31 December 31 September 30
Three months ended - in thousands 1997 1997 1997 1996 1996
- -------------------------------------------------------------------------------------------------------------------------------
Interest income
Loans $1,107,250 $1,084,532 $1,061,535 $1,017,982 $985,235
Securities 127,053 140,618 157,870 183,013 209,526
Other interest-earning assets 43,555 39,416 30,109 30,533 29,877
----------- ------------ ------------ ------------ -------------
Total interest income 1,277,858 1,264,566 1,249,514 1,231,528 1,224,638
Interest expense
Deposits 372,860 368,000 346,155 354,985 350,912
Borrowed funds 277,567 275,985 266,076 250,906 256,788
----------- ------------ ------------ ------------ -------------
Total interest expense 650,427 643,985 612,231 605,891 607,700
----------- ------------ ------------ ------------ -------------
Net interest income $627,431 $620,581 $637,283 $625,637 $616,938
===============================================================================================================================
-more-
8
PNC BANK CORP. AND SUBSIDIARIES Page 8
Details of Net Interest Margin
NET INTEREST MARGIN
Three months ended Nine months ended
September 30 September 30
-----------------------------------------------------
Taxable-equivalent basis 1997 1996 1997 1996
- -------------------------------------------------------------------------------------------------------------------------------
Rates earned/paid
Yield on earning assets
Loans 8.23% 8.01% 8.21% 8.02%
Securities 6.17 6.39 6.23 6.41
Other interest-earning assets 6.83 6.87 6.75 6.54
------------ ------------ ------------ -------------
Total yield on earning assets 7.92 7.64 7.87 7.62
Rate on interest-bearing liabilities
Deposits 4.23 4.01 4.16 4.06
Borrowed funds 5.92 5.83 5.84 5.74
------------ ------------ ------------ -------------
Total rate on interest-bearing liabilities 4.82 4.60 4.74 4.64
------------ ------------ ------------ -------------
Interest rate spread 3.10 3.04 3.13 2.98
Impact of noninterest-bearing sources .79 .81 .78 .79
------------ ------------ ------------ -------------
Net interest margin 3.89% 3.85% 3.91% 3.77%
===============================================================================================================================
Taxable-equivalent basis September 30 June 30 March 31 December 31 September 30
Three months ended 1997 1997 1997 1996 1996
- --------------------------------------------------------------------------------------------------------------------------------
Rates earned/paid
Yield on earning assets
Loans 8.23% 8.19% 8.20% 8.07% 8.01%
Securities 6.17 6.21 6.27 6.32 6.39
Other interest-earning assets 6.83 6.76 6.68 6.84 6.87
------------ ------------ ------------ ------------- ------------
Total yield on earning assets 7.92 7.85 7.86 7.71 7.64
Rate on interest-bearing liabilities
Deposits 4.23 4.18 4.06 4.05 4.01
Borrowed funds 5.92 5.88 5.76 5.79 5.83
------------ ------------ ------------ ------------- ------------
Total rate on interest-bearing liabilities 4.82 4.77 4.66 4.62 4.60
------------ ------------ ------------ ------------- ------------
Interest rate spread 3.10 3.08 3.20 3.09 3.04
Impact of noninterest-bearing sources .79 .76 .78 .83 .81
------------ ------------ ------------ ------------- ------------
Net interest margin 3.89% 3.84% 3.98% 3.92% 3.85%
================================================================================================================================
-more-
9
PNC BANK CORP. AND SUBSIDIARIES Page 9
Details of Noninterest Income
NONINTEREST INCOME
Three months ended Nine months ended
September 30 September 30
-------------------------- --------------------------
In thousands 1997 1996 1997 1996
- -------------------------------------------------------------------------------------------------------------------------------
Asset management
Asset management and trust $115,197 $92,569 $332,596 $280,266
Mutual fund servicing 35,608 29,730 103,799 87,425
----------------------------------------------------
Total asset management 150,805 122,299 436,395 367,691
Service fees
Deposit 78,406 74,104 239,081 212,025
Credit card and merchant services 23,292 5,656 64,356 14,856
Corporate finance and capital markets 18,480 19,645 56,162 49,166
Consumer 19,533 16,602 54,818 44,430
Brokerage 14,138 12,432 40,111 41,418
Insurance 10,421 7,712 29,226 21,356
Other 10,876 8,295 35,910 25,062
----------------------------------------------------
Total service fees 175,146 144,446 519,664 408,313
Mortgage banking
Servicing 30,316 29,361 85,728 88,842
Marketing 15,552 4,339 22,665 15,616
Sale of servicing 683 700 2,352 1,682
----------------------------------------------------
Total mortgage banking 46,551 34,400 110,745 106,140
Other 75,805 39,507 210,230 109,808
----------------------------------------------------
Total noninterest income before net securities gains (losses) 448,307 340,652 1,277,034 991,952
Net securities gains (losses) (2,657) 7,722 27,139 14,569
----------------------------------------------------
Total $445,650 $348,374 $1,304,173 $1,006,521
===============================================================================================================================
September 30 June 30 March 31 December 31 September 30
Three months ended - in thousands 1997 1997 1997 1996 1996
- -------------------------------------------------------------------------------------------------------------------------------
Asset management
Asset management and trust $115,197 $110,500 $106,899 $97,588 $92,569
Mutual fund servicing 35,608 35,518 32,673 31,460 29,730
-----------------------------------------------------------------
Total asset management 150,805 146,018 139,572 129,048 122,299
Service fees
Deposit 78,406 79,817 80,858 77,571 74,104
Credit card and merchant services 23,292 21,960 19,104 14,903 5,656
Corporate finance and capital markets 18,480 21,090 16,592 16,449 19,645
Consumer 19,533 17,988 17,297 19,246 16,602
Brokerage 14,138 12,731 13,242 12,392 12,432
Insurance 10,421 9,659 9,146 8,706 7,712
Other 10,876 13,852 11,182 8,778 8,295
-----------------------------------------------------------------
Total service fees 175,146 177,097 167,421 158,045 144,446
Mortgage banking
Servicing 30,316 27,963 27,449 30,064 29,361
Marketing 15,552 3,692 3,421 8,022 4,339
Sale of servicing 683 494 1,175 9,446 700
-----------------------------------------------------------------
Total mortgage banking 46,551 32,149 32,045 47,532 34,400
Other 75,805 64,773 69,652 46,399 39,507
-----------------------------------------------------------------
Total noninterest income before net securities
gains (losses) 448,307 420,037 408,690 381,024 340,652
Net securities gains (losses) (2,657) 13,370 16,426 7,555 7,722
-----------------------------------------------------------------
Total $445,650 $433,407 $425,116 $388,579 $348,374
===============================================================================================================================
-more-
10
PNC BANK CORP. AND SUBSIDIARIES Page 10
Details of Noninterest Expense
NONINTEREST EXPENSE
Three months ended Nine months ended
September 30 September 30
-----------------------------------------------------
In thousands 1997 1996 1997 1996
- -------------------------------------------------------------------------------------------------------------------------------
Staff expense
Compensation $250,833 $232,161 $739,130 $694,936
Employee benefits 48,141 45,600 156,706 145,763
----------------------------------------------------
Total staff expense 298,974 277,761 895,836 840,699
Net occupancy 46,221 47,530 139,532 147,294
Equipment 44,483 42,699 132,237 128,400
Goodwill amortization 13,110 13,244 39,652 39,182
Other amortization 35,349 15,768 78,165 41,556
Taxes other than income 13,879 12,972 42,746 40,993
Distributions on capital securities 13,192 30,015
Other 173,350 185,418 555,411 487,236
----------------------------------------------------
Total $638,558 $595,392 $1,913,594 $1,725,360
===============================================================================================================================
September 30 June 30 March 31 December 31 September 30
Three months ended - in thousands 1997 1997 1997 1996 1996
- -------------------------------------------------------------------------------------------------------------------------------
Staff expense
Compensation $250,833 $243,602 $244,695 $234,690 $232,161
Employee benefits 48,141 50,559 58,006 34,543 45,600
-----------------------------------------------------------------
Total staff expense 298,974 294,161 302,701 269,233 277,761
Net occupancy 46,221 46,071 47,240 49,681 47,530
Equipment 44,483 45,710 42,044 43,274 42,699
Goodwill amortization 13,110 13,274 13,268 15,118 13,244
Other amortization 35,349 26,253 16,563 21,583 15,768
Taxes other than income 13,879 13,832 15,035 12,360 12,972
Distributions on capital securities 13,192 9,867 6,956 1,391
Other 173,350 189,664 192,397 173,850 185,418
-----------------------------------------------------------------
Total $638,558 $638,832 $636,204 $586,490 $595,392
===============================================================================================================================
-more-
11
PNC BANK CORP. AND SUBSIDIARIES Page 11
Consolidated Balance Sheet
September 30 December 31 September 30
In millions 1997 1996 1996
- ----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Cash and due from banks $3,460 $4,016 $3,611
Short-term investments 1,084 774 920
Loans held for sale 1,398 941 915
Securities available for sale 8,000 11,917 11,243
Loans, net of unearned income of $382, $385 and $347 53,651 51,798 49,443
Allowance for credit losses (1,027) (1,166) (1,152)
---------------------------------------
Net loans 52,624 50,632 48,291
Other 5,262 4,980 4,682
-------------------------- ------------
Total assets $71,828 $73,260 $69,662
=======================================
LIABILITIES
Deposits
Noninterest-bearing $9,914 $10,937 $10,900
Interest-bearing 34,874 34,739 34,530
---------------------------------------
Total deposits 44,788 45,676 45,430
Borrowed funds
Bank notes and senior debt 10,469 8,093 7,902
Federal funds purchased 1,739 3,933 1,793
Repurchase agreements 889 645 909
Other borrowed funds 4,257 5,576 4,689
Subordinated debt 1,698 1,357 1,357
---------------------------------------
Total borrowed funds 19,052 19,604 16,650
Other 1,862 1,761 1,784
---------------------------------------
Total liabilities 65,702 67,041 63,864
Mandatorily redeemable capital securities of subsidiary trusts 650 350
SHAREHOLDERS' EQUITY
Preferred stock 7 7 1
Common stock 1,740 1,726 1,717
Capital surplus 1,024 939 590
Retained earnings 4,499 4,075 3,931
Deferred benefit expense (61) (60) (77)
Net unrealized securities losses (35) (67) (115)
Common stock held in treasury (1,698) (751) (249)
-------------------------- ------------
Total shareholders' equity 5,476 5,869 5,798
-------------------------- ------------
Total liabilities, capital securities and shareholders' equity $71,828 $73,260 $69,662
==================================================================================================================================
-more-
12
PNC BANK CORP. AND SUBSIDIARIES Page 12
Consolidated Average Balance Sheet Data
Three months ended Nine months ended
September 30 September 30
-----------------------------------------------------
In millions 1997 1996 1997 1996
- -------------------------------------------------------------------------------------------------------------------------------
ASSETS
Interest-earning assets
Securities $8,216 $13,097 $9,113 $14,214
Loans, net of unearned income
Consumer
Credit card 3,871 1,007 3,475 991
Other consumer 10,996 12,047 11,352 12,231
----------------------------------------------------
Total consumer 14,867 13,054 14,827 13,222
Residential mortgage 13,503 12,325 13,152 11,944
Commercial 18,394 17,049 18,268 16,997
Commercial real estate 4,486 4,712 4,536 4,809
Other 1,952 1,573 1,868 1,853
----------------------------------------------------
Total loans, net of unearned income 53,202 48,713 52,651 48,825
Other interest-earning assets 2,536 1,735 2,229 2,157
----------------------------------------------------
Total interest-earning assets 63,954 63,545 63,993 65,196
Noninterest-earning assets 6,627 6,001 6,575 6,038
----------------------------------------------------
Total assets $70,581 $69,546 $70,568 $71,234
====================================================
LIABILITIES
Interest-bearing liabilities
Deposits $34,952 $34,794 $34,934 $35,348
Borrowed funds 18,484 17,558 18,584 18,719
----------------------------------------------------
Total interest-bearing liabilities 53,436 52,352 53,518 54,067
Noninterest-bearing deposits 9,654 9,922 9,585 9,866
Other 1,460 1,506 1,469 1,535
----------------------------------------------------
Total liabilities 64,550 63,780 64,572 65,468
Mandatorily redeemable capital securities of subsidiary trusts 650 498
SHAREHOLDERS' EQUITY 5,381 5,766 5,498 5,766
----------------------------------------------------
Total liabilities, capital securities and shareholders' equity $70,581 $69,546 $70,568 $71,234
===============================================================================================================================
-more-
13
PNC BANK CORP. AND SUBSIDIARIES Page 13
Consolidated Balance Sheet Data
AVERAGE BALANCES
September 30 June 30 March 31 December 31 September 30
Three months ended - in millions 1997 1997 1997 1996 1996
- --------------------------------------------------------------------------------------------------------------------------------
ASSETS
Interest-earning assets
Securities $8,216 $9,055 $10,089 $11,569 $13,097
Loans, net of unearned income
Consumer
Credit card 3,871 3,502 3,043 1,683 1,007
Other consumer 10,996 11,239 11,827 12,084 12,047
-----------------------------------------------------------------
Total consumer 14,867 14,741 14,870 13,767 13,054
Residential mortgage 13,503 13,164 12,781 12,361 12,325
Commercial 18,394 18,494 17,916 17,584 17,049
Commercial real estate 4,486 4,530 4,591 4,630 4,712
Other 1,952 1,884 1,764 1,631 1,573
-----------------------------------------------------------------
Total loans, net of unearned income 53,202 52,813 51,922 49,973 48,713
Other interest-earning assets 2,536 2,333 1,814 1,780 1,735
-----------------------------------------------------------------
Total interest-earning assets 63,954 64,201 63,825 63,322 63,545
Noninterest-earning assets 6,627 6,620 6,476 6,214 6,001
-----------------------------------------------------------------
Total assets $70,581 $70,821 $70,301 $69,536 $69,546
=================================================================
LIABILITIES
Interest-bearing liabilities
Deposits $34,952 $35,313 $34,533 $34,829 $34,794
Borrowed funds 18,484 18,675 18,594 17,110 17,558
-----------------------------------------------------------------
Total interest-bearing liabilities 53,436 53,988 53,127 51,939 52,352
Noninterest-bearing deposits 9,654 9,501 9,600 10,003 9,922
Other 1,460 1,480 1,466 1,501 1,506
-----------------------------------------------------------------
Total liabilities 64,550 64,969 64,193 63,443 63,780
Mandatorily redeemable capital securities of subsidiary 650 492 350 76
trusts
SHAREHOLDERS' EQUITY 5,381 5,360 5,758 6,017 5,766
-----------------------------------------------------------------
Total liabilities, capital securities and shareholders'
equity $70,581 $70,821 $70,301 $69,536 $69,546
================================================================================================================================
LOAN PORTFOLIO
September 30 June 30 March 31 December 31 September 30
Period ended - in millions 1997 1997 1997 1996 1996
- --------------------------------------------------------------------------------------------------------------------------------
Consumer
Credit card $3,861 $3,693 $3,345 $2,776 $1,077
Other consumer 11,206 10,983 11,356 12,092 12,264
Residential mortgage 13,280 13,494 13,056 12,703 12,642
Commercial 19,088 18,789 18,517 18,062 17,484
Commercial real estate
Commercial mortgage 2,158 2,357 2,397 2,467 2,544
Real estate project 2,159 2,123 2,137 2,157 2,090
Other 2,281 2,450 2,154 1,926 1,689
-----------------------------------------------------------------
Total loans 54,033 53,889 52,962 52,183 49,790
Unearned income (382) (392) (387) (385) (347)
-----------------------------------------------------------------
Loans, net of unearned income $53,651 $53,497 $52,575 $51,798 $49,443
================================================================================================================================
-more-
14
PNC BANK CORP. AND SUBSIDIARIES Page 14
Asset Quality Data
ALLOWANCE FOR CREDIT LOSSES
September 30 June 30 March 31 December 31 September 30
Three months ended - in millions 1997 1997 1997 1996 1996
- --------------------------------------------------------------------------------------------------------------------------------
Beginning balance $1,075 $1,119 $1,166 $1,152 $1,189
Charge-offs
Consumer
Credit card (53) (55) (46) (23) (16)
Other consumer (25) (25) (30) (28) (23)
-----------------------------------------------------------------
Total consumer (78) (80) (76) (51) (39)
Residential mortgage (3) (3) (2) (2) (3)
Commercial (11) (10) (10) (17) (9)
Commercial real estate (3) (3) (1) (9) (4)
-----------------------------------------------------------------
Total charge-offs (95) (96) (89) (79) (55)
Recoveries
Consumer
Credit card 4 9 7 2 2
Other consumer 9 9 9 9 8
-----------------------------------------------------------------
Total consumer 13 18 16 11 10
Residential mortgage 1 1
Commercial 7 18 9 7 7
Commercial real estate 2 1 3 3 1
-----------------------------------------------------------------
Total recoveries 22 37 29 22 18
-----------------------------------------------------------------
Net charge-offs (73) (59) (60) (57) (37)
Provision for credit losses 20 15 10
Acquisitions 5 3 71
-----------------------------------------------------------------
Ending balance $1,027 $1,075 $1,119 $1,166 $1,152
================================================================================================================================
NONPERFORMING ASSETS
September 30 June 30 March 31 December 31 September 30
Period ended - in millions 1997 1997 1997 1996 1996
- --------------------------------------------------------------------------------------------------------------------------------
Nonaccrual loans
Commercial $142 $155 $135 $156 $176
Commercial real estate
Commercial mortgage 94 106 113 109 118
Real estate project 28 33 24 25 21
Consumer 6 5 5 6 5
Residential mortgage 45 46 45 51 54
-----------------------------------------------------------------
Total nonaccrual loans 315 345 322 347 374
Restructured loans 2 1 1 2 3
-----------------------------------------------------------------
Total nonperforming loans 317 346 323 349 377
Foreclosed assets
Commercial real estate 37 55 66 71 79
Residential mortgage 23 23 24 22 22
Other 17 18 16 17 23
-----------------------------------------------------------------
Total foreclosed assets 77 96 106 110 124
-----------------------------------------------------------------
Total nonperforming assets $394 $442 $429 $459 $501
================================================================================================================================