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PNC EXPECTS TO REPORT STRONG FOURTH QUARTER EARNINGS; RECOGNIZES ONE-TIME EXPENSE FOR NON-PENSION BENEFITS

 PITTSBURGH, Jan. 7 /PRNewswire/ -- PNC Financial Corp (NYSE: PNC) today said it expects to report strong operating earnings for the fourth quarter of 1992.
 The company also announced the adoption of Statement of Financial Accounting Standards -- 106 (FAS 106) related to accounting for postretirement benefits, retroactive to Jan. 1, 1992.
 Before reflecting the accounting change, fourth quarter earnings were approximately $146 million, or $.62 per fully diluted share, compared with $101 million, or $.48 per fully diluted share, for the fourth quarter of last year. This represents a quarterly record for PNC. For the full year, PNC said it earned approximately $538 million, or $2.38 per fully diluted share, compared with $390 million, or $1.94 per fully diluted share, for 1991.
 The adoption of FAS 106 will result in additional after-tax expense in 1992 of approximately $111 million, or $.49 per fully diluted share, consisting of a one-time charge of $103 million in the first quarter and $2 million of operating expense in each quarter.
 After giving effect to the adoption of FAS 106, net income for 1992 is expected to be approximately $427 million, or $1.89 per fully diluted share. Additionally, net income for the fourth quarter is expected to be $144 million, or $.61 per fully diluted share.
 Consistent with its strategy of acquisitions in existing and adjoining markets, PNC completed two acquisitions during the fourth quarter that added about $2 billion in assets and announced two additional agreements to acquire banks with assets in excess of $2.2 billion. PNC's total assets were approximately $51 billion at year end, compared with $45 billion at year-end 1991.
 Thomas H. O'Brien, chairman and chief executive officer of PNC, said, "We are pleased with our strong performance for 1992 and confident about prospects for 1993. We anticipate growth from our core businesses; from some of our more rapidly growing businesses such as mutual funds, securities distribution, mortgage servicing and corporate services; and from acquisitions."
 Credit quality showed continued improvement in the fourth quarter. Nonperforming assets are anticipated to decline $45 million to approximately $840 million, even with the addition of $57 million from acquisitions closed in the fourth quarter. The allowance for credit losses as a percentage of total nonperforming loans will approximate 155 percent, compared with 145 percent at the end of the third quarter and 105 percent at year-end 1991. The ratio of nonperforming assets to total loans and foreclosed assets will approximate 3.2 percent at year end, versus 3.6 percent at the end of the third quarter and 4.2 percent at year-end 1991.
 FAS 106 requires companies to record the liability for postretirement health and insurance benefits during the working lives of employees beginning in 1993, with earlier adoption permitted. In adopting FAS 106, companies have the option of recording the cost related to past employee service at the time of adoption or through future charges to earnings.
 PNC has elected to record the past employee service cost in 1992.
 Commenting on the decision to take a one-time charge for the FAS 106 liabilities, O'Brien said, "Our strong earnings and capital position allowed us to put the FAS 106 liability behind us in 1992. By taking this action now instead of deferring the charge, we will minimize these costs in the future."
 PNC expects to distribute its final release of earnings for 1992 later this month.
 PNC Financial Corp, headquartered in Pittsburgh, is the nation's 13th-largest bank holding company, based on assets at Sept. 30, 1992. It operates approximately 550 community banking offices in Pennsylvania, Kentucky, Ohio, Indiana and Delaware and conducts business through additional offices in 16 states.
 PNC's principal banking affiliates include: Pittsburgh National Bank, Pittsburgh; Provident National Bank, Philadelphia; Citizens Fidelity Bank, Louisville, Ky.; Central Trust, Cincinnati; Marine Bank, Erie, Pa.; Bank of Delaware, Wilmington, Del.; Northeastern Bank, Scranton, Pa.; PNC National Bank, Wilmington, Del.; CCNB Bank, N.A., Camp Hill, Pa.; Hershey Bank, Hershey, Pa.; and The First Bank and Trust Company, Mechanicsburg, Pa.
 /delval/
 -0- 1/7/93
 /CONTACT: Jonathan Williams, media, 412-762-4550, or at home, 412-257-3257; or William H. Callihan, investors, 412-762-8257, both of PNC Financial Corp/
 (PNC)


CO: PNC Financial Corp ST: Pennsylvania IN: FIN SU: ERN

CD -- PG004 -- 2736 01/07/93 14:51 EST
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Publication:PR Newswire
Date:Jan 7, 1993
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