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PNC BANK EARNS $167.6 MILLION IN THE FIRST QUARTER

 PITTSBURGH, April 15 /PRNewswire/ -- PNC Bank Corp. (NYSE: PNC) today reported net income for the first quarter of 1993 of $167.6 million, or $.70 per fully diluted share compared with $23.0 million, or $.10 per share in 1992, after the effect of accounting changes in both quarters.
 PNC Bank reported income before the accounting changes of $187.0 million, or $.78 per share compared with $125.5 million, or $.57 per share in 1992.
 "Our momentum continues, thanks primarily to strong earnings from our core businesses," said Thomas H. O'Brien, chairman and chief executive officer of PNC Bank. "The fundamental ingredients we've identified for continued favorable performance -- financial strength, operating efficiency, high credit quality and a dedicated customer focus -- are yielding positive results."
 During the first quarter, PNC Bank adopted Statement of Financial Accounting Standards (SFAS) No. 109 related to income taxes and changed its accounting method to provide for a more rapid write-off of mortgage servicing rights. These changes resulted in additional after-tax expense of $19.4 million, or $.08 per fully diluted share.
 The first quarter of 1992 included the effect of adopting SFAS No. 106 related to postretirement benefits which resulted in a one-time after-tax expense of $102.5 million, or $.47 per share.
 PNC Bank's asset quality continued to improve, with a ratio of nonperforming assets to total loans and foreclosed assets of 2.92 percent at March 31, 1993, which was below 3 percent for the first time since mid 1990. This ratio was 3.14 percent last quarter and 3.99 percent at March 31, 1992.
 Other measures of asset quality also improved, with nonperforming assets (which include nonaccrual loans, restructured loans and foreclosed assets) declining by $79.6 million to $740.1 million at March 31, 1993. The ratio of nonperforming assets to total assets was 1.45 percent at the end of the quarter, compared with 1.60 percent at Dec. 31, 1992, and 2.29 percent a year ago. Nonperforming loans totaled $484.9 million at March 31, 1993, compared with $553.3 million at Dec. 31, 1992, and $698.3 million a year ago.
 The provision for credit losses in the first quarter totaled $61.4 million and net charge-offs were $47.4 million, compared with $90.4 million and $92.8 million, respectively, in the corresponding 1992 period. The allowance for credit losses increased to $910.8 million at March 31, 1993, and represented 187.8 percent of nonperforming loans compared with 162.1 percent at Dec. 31, 1992, and 113.8 percent a year ago.
 PNC Bank's total assets were $51.1 billion at March 31, 1993, compared with $51.4 billion at year end and $43.8 billion at March 31, 1992. Shareholders' equity totaled $3.9 billion at March 31, 1993. The leverage capital ratio was 8.0 percent, and estimated Tier I and total risk-based capital ratios are 10.5 percent and 12.7 percent, respectively.
 The net interest margin was 4.14 percent, compared with 3.95 percent a year earlier. Average earning assets increased $4.8 billion to $45.0 billion in 1993. On the strength of the improved margin and growth in earning assets, net interest income on a taxable-equivalent basis increased 16.6 percent to $463.6 million.
 Noninterest income increased 17.3 percent to $280.3 million in the first quarter of 1993.
 Core fee income -- comprised of trust income and service charges, fees and commissions -- increased 2.5 percent in 1993 to $155.6 million. Net security gains totaled $112.5 million in the first quarter of 1993 (including $7.5 million in net gains from equity securities), compared with $81.0 million in 1992.
 Noninterest expenses totaled $387.0 million in the first quarter of 1993 compared with $346.6 million in the corresponding 1992 period. The primary reasons for the increase were approximately $40 million in expenses related to consolidating certain operations, contributions to the PNC Bank Foundation, legal costs and various other accruals.
 The overhead ratio was 54.1 percent in the first quarter of 1993 compared with 54.4 percent in 1992.
 PNC Bank is the 10th-largest banking organization in the United States, with $51.4 billion in assets at year-end 1992 and more than 550 community banking offices throughout Pennsylvania, Delaware, Ohio, Kentucky and Indiana. PNC Bank's major lines of business are retail banking; corporate banking; investment management and trust; and investment banking.
 PNC Bank Corp. operates as PNC Bank in most of its Pennsylvania markets and in Kentucky and Ohio. Its Marine Bank in Northwestern Pennsylvania; CCNB Bank, Hershey Bank and First Bank and Trust in Southcentral Pennsylvania; and Bank of Delaware in Delaware will change names to PNC Bank by the first quarter of 1994. PNC Bank Corp. is headquartered in Pittsburgh.
 PNC BANK CORP. AND SUBSIDIARIES
 Financial Highlights
 (Dollars in thousands, except per share data)
 Three months ended March 31 1993 1992
 FINANCIAL PERFORMANCE
 Net interest income
 (taxable-equivalent basis) $463,568 $397,700
 Income before cumulative effect of
 changes in accounting principles 187,011 125,475
 Net income 167,618 22,974
 Earnings per common share
 Before cumulative effect of changes
 in accounting principles
 Primary .79 .57
 Fully diluted .78 .57
 Net income
 Primary .71 .10
 Fully diluted .70 .10
 Cash dividends declared per common share .285 .265
 Average common shares outstanding
 Primary 235,914 218,548
 Fully diluted 238,435 219,278
 Net interest margin 4.14pct. 3.95pct.
 Return on average total assets 1.42 .94
 Return on average shareholders' equity 17.83 12.25
 Return on average common shareholders'
 equity 17.89 12.29
 Average shareholders equity to average
 total assets 7.98 7.68
 Net charge-offs to average loans .76 1.52
 Provision for credit losses to net
 charge-offs 129.47 97.40
 Overhead ratio 54.14 54.44
 March 31 Dec. 31 March 31
 1993 1992 1992
 PERIOD-END RATIOS
 Capital
 Leverage 7.96pct. 7.62pct. 7.62pct.
 Common shareholders' equity
 to total assets 7.50 7.23 7.46
 Asset quality
 Nonperforming loans to
 total loans 1.93 2.14 2.81
 Nonperforming assets to
 total loans and
 foreclosed assets 2.92 3.14 3.99
 Nonperforming assets
 to total assets 1.45 1.60 2.29
 Allowance for credit
 losses to total loans 3.62 3.47 3.20
 Allowance for credit losses
 to nonperforming loans 187.85 162.08 113.83
 BOOK VALUE PER COMMON SHARE $16.42 $15.96 $15.12
 PNC BANK CORP. AND SUBSIDIARIES
 Consolidated Statement of Income
 (In thousands)
 Three months ended March 31 1993 1992
 INTEREST INCOME
 Loans and fees on loans $486,219 $513,216
 Money market assets 5,782 11,596
 Securities 298,497 289,166
 Other 3,055 5,895
 Total interest income 793,553 819,873
 INTEREST EXPENSE
 Deposits 199,177 325,878
 Borrowed funds 115,303 87,473
 Notes and debentures 25,382 20,234
 Total interest expense 339,862 433,585
 Net interest income 453,691 386,288
 Provision for credit losses 61,417 90,420
 Net interest income less provision
 for credit losses 392,274 295,868
 NONINTEREST INCOME
 Trust 66,273 65,324
 Service charges, fees and commissions 89,339 86,489
 Trading account profits (losses) 2,514 (1,230)
 Net equity and other security
 gains (losses) 7,506 (755)
 Net debt security gains 105,027 81,746
 Other 9,622 7,290
 Total noninterest income 280,281 238,864
 NONINTEREST EXPENSES
 Compensation and benefits 176,404 157,158
 Net occupancy and equipment 58,319 50,629
 Other 152,292 138,768
 Total noninterest expenses 387,015 346,555
 Income before income taxes and
 cumulative effect of changes in
 accounting principles 285,540 188,177
 Applicable income taxes 98,529 62,702
 Income before cumulative effect of
 changes in accounting principles 187,011 125,475
 Cumulative effect of changes in
 accounting principles, net of tax
 benefits of $5,343 and $52,804 (19,393) (102,501)
 Net income $167,618 $22,974
 PNC BANK CORP. AND SUBSIDIARIES
 Consolidated Balance Sheet
 (Dollars in millions)
 March 31 Dec. 31 March 31
 1993 1992 1992
 ASSETS
 Cash and due from banks $1,737 $2,117 $1,760
 Money market 2,304 1,165 529
 Securities available for
 sale, market value of
 $5,429, $7,552 and $1,513 5,317 7,414 1,466
 Investment securities,
 market value of
 $15,252, $13,430
 and $13,907 14,996 13,327 13,767
 Loans, net of unearned income 25,127 25,817 24,829
 Allowance for credit losses (911) (897) (795)
 Net loans 24,216 24,920 24,034
 Other 2,554 2,437 2,262
 Total assets $51,124 $51,380 $43,818
 LIABILITIES
 Deposits
 Noninterest-bearing $5,091 $5,890 $4,781
 Interest-bearing 23,075 23,580 24,373
 Total deposits 28,166 29,470 29,154
 Borrowed funds 14,985 14,736 9,110
 Notes and debentures 2,322 1,372 1,345
 Other 1,796 2,056 903
 Total liabilities 47,269 47,634 40,512
 SHAREHOLDERS' EQUITY 3,855 3,746 3,306
 Total liabilities and
 shareholders' equity $51,124 $51,380 $43,818
 COMMON SHAREHOLDERS' EQUITY $3,833 $3,713 $3,269
 COMMON SHARES OUTSTANDING 233,413,124 232,573,253 108,166,375
 PNC BANK CORP. AND SUBSIDIARIES
 Statistical Information
 AVERAGE BALANCE SHEET
 In millions
 Three months ended March 31 1993 1992
 ASSETS
 Loans, net of unearned income
 Commercial $10,578 $10,688
 Real estate project 1,926 2,057
 Real estate mortgage 4,029 3,632
 Consumer 7,804 7,265
 Other 877 994
 Total loans 25,214 24,636
 Securities 18,980 14,381
 Other earning assets 786 1,205
 Total earning assets 44,980 40,222
 Other 2,814 2,505
 Total assets $47,794 $42,727
 LIABILITIES
 Deposits
 Interest-bearing $23,039 $24,783
 Noninterest-bearing 5,051 4,486
 Total deposits 28,090 29,269
 Borrowed funds 12,976 8,125
 Notes and debentures 1,917 1,310
 Other 997 741
 Total liabilities 43,980 39,445
 SHAREHOLDERS' EQUITY 3,814 3,282
 Total liabilities shareholders' equity $47,794 $42,727
 COMMON SHAREHOLDERS' EQUITY $3,789 $3,246
 PNC BANK CORP. AND SUBSIDIARIES
 Statistical Information (continued)
 NONPERFORMING ASSETS
 March 31 Dec. 31 March 31
 In millions 1993 1992 1992
 NONACCRUAL LOANS
 Commercial $281 $313 $429
 Real estate 195 213 253
 Foreign 3 3 5
 Total nonaccrual loans 479 529 687
 RESTRUCTURED LOANS
 Commercial 4 11 11
 Real estate 2 14 1
 Total restructured loans 6 25 12
 Total nonperforming loans 485 554 699
 FORECLOSED ASSETS
 Commercial 37 34 41
 Real estate 216 230 261
 Foreign 2 2 2
 Total foreclosed assets 255 266 304
 Total nonperforming assets $740 $820 $1,003
 ALLOWANCE FOR CREDIT LOSSES
 In millions
 Three months ended March 31 1993 1992
 Beginning balance $897 $797
 Charge-offs (63) (108)
 Recoveries 16 15
 Net charge-offs (47) (93)
 Provision for credit losses 61 91
 Ending balance $911 $795
 /delval/
 -0- 4/15/93
 /CONTACT: Jonathan Williams, media, 412-762-4550, or at home, 412-257-3257; or William H. Callihan, investors, 412-762-8257/
 (PNC)


CO: PNC Bank Corp.; PNC Bank ST: Pennsylvania IN: FIN SU: ERN

DM -- PG002 -- 6034 04/15/93 09:04 EDT
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Date:Apr 15, 1993
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