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EXHIBIT 12.2
PNC BANK CORP. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
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 and preferred stock dividends
excluding interest on deposits.............. 720,664 1,045,609 652,432 521,908 518,004 922,156
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Subtotal................................... $1,105,331 1,947,998 1,769,044 1,300,030 1,066,205 951,581
Interest on deposits......................... 612,618 935,876 742,772 1,063,422 1,727,765 1,973,087
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Total...................................... $1,717,949 $2,883,874 $2,511,816 $2,363,452 $2,793,970 $2,924,668
===================================================================================
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
Preferred stock dividend requirements........ 1,134 2,414 2,534 4,484 4,634 3,458
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Subtotal................................... 720,664 1,045,609 652,432 521,908 518,004 922,156
Interest on deposits......................... 612,618 935,876 742,772 1,063,422 1,727,765 1,973,087
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Total...................................... $1,333,282 $1,981,485 $1,395,204 $1,585,330 $2,245,769 $2,895,243
===================================================================================
RATIO OF EARNINGS TO COMBINED FIXED
CHARGES AND PREFERRED STOCK DIVIDENDS
Excluding interest on deposits.............. 1.53x 1.86x 2.71x 2.49x 2.06x 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 COMBINED FIXED CHARGES
AND PREFERRED DIVIDENDS
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 and preferred stock
dividends excluding interest
on deposits.......................... 43,139 66,955 59,907 70,994 105,996 208,025
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Subtotal........................... $218,606 370,960 80,260 80,866 (480,783) (87,814)
Interest on deposits................... 135,857 223,366 262,886 483,154 1,011,800 1,175,719
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Total.............................. $354,463 $594,326 $343,146 $564,020 $ 531,017 $1,087,905
======================================================================================
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
Preferred stock dividend requirements.. 2,789 5,577 5,577 5,564 5,776 5,776
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Subtotal........................... 43,139 66,955 59,907 70,994 105,996 208,025
Interest on deposits................... 135,857 223,366 262,886 483,154 1,011,800 1,175,719
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Total.............................. $178,996 $290,321 $322,793 $554,148 $1,117,796 $1,383,744
======================================================================================
RATIO OF EARNINGS TO COMBINED FIXED
CHARGES AND PREFERRED STOCK DIVIDENDS
Excluding interest on deposits......... 5.07x 5.54x 1.34x 1.14x (4.54)x (.42)x
Including interest on deposits......... 1.98 2.05 1.06 1.02 .48 .79
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3
PNC BANK CORP.
PRO FORMA COMPUTATION OF RATIO OF EARNINGS
TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS
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 and preferred stock
dividends excluding interest
on deposits.......................... 763,803 1,112,564 712,339 592,902 624,000 1,130,181
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Subtotal........................... 1,323,937 2,318,958 1,849,304 1,380,896 585,422 863,767
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.............................. $2,072,412 $3,478,200 $2,854,962 $2,927,472 $3,324,987 $4,012,573
======================================================================================
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
Preferred stock dividend requirements.. 3,923 7,991 8,111 10,048 10,410 9,234
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Subtotal........................... 763,803 1,112,564 712,339 592,902 624,000 1,130,181
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.............................. $1,512,278 $2,271,806 $1,717,997 $2,139,478 $3,363,565 $4,278,987
======================================================================================
RATIO OF EARNINGS TO COMBINED FIXED
CHARGES AND PREFERRED STOCK DIVIDENDS
Excluding interest on deposits......... 1.73x 2.08x 2.60x 2.33x .94x .76x
Including interest on deposits......... 1.37 1.53 1.66 1.37 .99 .94
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The pro forma computation of ratio of earnings to combined fixed charges and
preferred stock dividends 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 and
preferred stock dividends 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 and preferred stock dividends, 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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