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EXHIBIT 12.1
PNC BANK CORP. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Year ended December 31
Six months ended --------------------------------------------------------------------
Dollars in thousands June 30, 1995 1994 1993 1992 1991 1990
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EARNINGS
Income before taxes and
cumulative effect of changes in
accounting principles................ $ 384,667 $ 902,389 $1,116,612 $ 778,122 $ 548,201 $ 29,425
Fixed charges excluding interest
on deposits.......................... 719,530 1,043,195 649,898 517,424 513,370 918,698
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Subtotal............................ 1,104,197 1,945,584 1,766,510 1,295,546 1,061,571 948,123
Interest on deposits.................. 612,618 935,876 742,772 1,063,422 1,727,765 1,973,087
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Total............................... $1,716,815 $2,881,460 $2,509,282 $2,358,968 $2,789,336 $2,921,210
======================================================================================
FIXED CHARGES
Interest on notes and debentures...... $ 288,544 $ 515,732 $ 265,353 $ 145,125 $ 95,207 $ 84,045
Interest on borrowed funds............ 418,867 499,252 362,995 352,162 398,779 816,448
Amortization of notes and debentures.. 391 1,346 967 970 584 538
Interest component of rentals ........ 11,728 26,865 20,583 19,167 18,800 17,667
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Subtotal............................ 719,530 1,043,195 649,898 517,424 513,370 918,698
Interest on deposits.................. 612,618 935,876 742,772 1,063,422 1,727,765 1,973,087
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Total............................... $1,332,148 $1,979,071 $1,392,670 $1,580,846 $2,241,135 $2,891,785
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RATIO OF EARNINGS TO FIXED CHARGES
Excluding interest on deposits...... 1.53x 1.87x 2.72x 2.50x 2.07x 1.03x
Including interest on deposits...... 1.29 1.46 1.80 1.49 1.24 1.01
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2
MIDLANTIC CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Year ended December 31
Six months ended --------------------------------------------------------------------
Dollars in thousands June 30, 1995 1994 1993 1992 1991 1990
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EARNINGS
Income before taxes and
cumulative effect of changes in
accounting principles................ $175,467 $304,005 $ 20,353 $ 9,872 $ (586,779) $ (295,839)
Fixed charges excluding interest
on deposits.......................... 40,350 61,378 54,330 65,430 100,220 202,249
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Subtotal........................... $215,817 365,383 74,683 75,302 (486,559) (93,590)
Interest on deposits................... 135,857 223,366 262,886 483,154 1,011,800 1,175,719
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Total.............................. $351,674 $588,749 $337,569 $558,456 $ 525,241 $1,082,129
======================================================================================
FIXED CHARGES
Interest on notes and debentures....... $ 17,170 $ 34,453 $ 36,385 $ 41,517 $ 42,220 $ 42,178
Interest on borrowed funds............. 20,371 21,128 11,586 16,806 50,224 152,391
Amortization of notes and debentures... 125 415 451 535 535 534
Interest component of rentals.......... 2,684 5,382 5,908 6,572 7,241 7,146
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Subtotal........................... 40,350 61,378 54,330 65,430 100,220 202,249
Interest on deposits................... 135,857 223,366 262,886 483,154 1,011,800 1,175,719
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Total.............................. $176,207 $284,744 $317,216 $548,584 $1,112,020 $1,377,968
======================================================================================
RATIO OF EARNINGS TO COMBINED FIXED
CHARGES
Excluding interest on deposits......... 5.35x 5.95x 1.37x 1.15x (4.85)x (.46)x
Including interest on deposits......... 2.00 2.07 1.06 1.02 .47 .79
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3
PNC BANK CORP. AND SUBSIDIARIES
PRO FORMA COMPUTATION OF RATIO OF EARNINGS TO
FIXED CHARGES GIVING EFFECT TO MIDLANTIC MERGER
Year ended December 31
Six months ended --------------------------------------------------------------------
Dollars in thousands June 30, 1995 1994 1993 1992 1991 1990
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EARNINGS
Income before taxes and
cumulative effect of changes in
accounting principles................ $ 560,134 $1,206,394 $1,136,965 $ 787,994 $ (38,578) $ (266,414)
Fixed charges excluding interest
on deposits.......................... 759,880 1,104,573 704,228 582,854 613,590 1,120,947
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Subtotal........................... $1,320,014 2,310,967 1,841,193 1,370,848 575,012 854,533
Interest on deposits................... 748,475 1,159,242 1,005,658 1,546,576 2,739,565 3,148,806
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Total.............................. $2,068,489 $3,470,209 $2,846,851 $2,917,424 $3,314,577 $4,003,339
======================================================================================
FIXED CHARGES
Interest on notes and debentures....... $ 305,714 $ 550,185 $ 301,738 $ 186,642 $ 137,427 $ 126,223
Interest on borrowed funds............. 439,238 520,380 374,581 368,968 449,003 968,839
Amortization of notes and debentures... 516 1,761 1,418 1,505 1,119 1,072
Interest component of rentals.......... 14,412 32,247 26,491 25,739 26,041 24,813
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Subtotal........................... 759,880 1,104,573 704,228 582,854 613,590 1,120,947
Interest on deposits................... 748,475 1,159,242 1,005,658 1,546,576 2,739,565 3,148,806
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Total.............................. $1,508,355 $2,263,815 $1,709,886 $2,129,430 $3,353,155 $4,269,753
======================================================================================
RATIO OF EARNINGS TO FIXED
CHARGES
Excluding interest on deposits......... 1.74x 2.09x 2.63x 2.35x .94x .76x
Including interest on deposits......... 1.37 1.53 1.67 1.37 .99 .94
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The pro forma computation of ratio of earnings to fixed charges
gives effect to the Merger to be accounted for as a pooling of interests. The
financial information on the preceding pages presents (i) the historical
computation of ratio of earnings to fixed charges of both the Corporation and
Midlantic, for the six months ended June 30, 1995 and for each of the five years
in the period ended December 31, 1994 and (ii) the computation of ratio of
earnings to fixed charges, giving effect to the Merger as if it had occurred at
the beginning of the earliest period presented.
During 1995 and 1994, the Corporation and Midlantic completed or have pending,
various other acquisitions which individually and in the aggregate are not
"significant subsidiaries" in relation to the Corporation. Accordingly, pro
forma financial information with respect to those acquisitions is not included
herein.
The pro forma consolidated financial information is intended for informational
purposes and may not be indicative of the financial position or results that
actually would have occurred had the transaction been consummated on the dates
indicated, or which will be attained in the future. The pro forma consolidated
financial information should be read in conjunction with the 1994 Annual Reports
on Form 10-K and the Quarterly Reports on Form 10-Q for the quarterly period
ended June 30, 1995 of the Corporation and Midlantic.
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