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PNC REPORTS 1991 EARNINGS OF $389.8 MILLION, INCLUDING $100.6 MILLION IN FOURTH QUARTER

 PNC REPORTS 1991 EARNINGS OF $389.8 MILLION,
 INCLUDING $100.6 MILLION IN FOURTH QUARTER
 PITTSBURGH, Jan. 13 /PRNewswire/ -- PNC Financial Corp (NYSE: PNC) today reported consolidated net income for 1991 of $389.8 million, or $3.89 per fully diluted share, compared with $70.9 million, or $.73 per share in 1990.
 Consolidated net income for the fourth quarter was $100.6 million, or $.96 per fully diluted share, compared with a net loss of $168.3 million, or $1.77 per share, for the comparable 1990 period.
 Thomas H. O'Brien, chairman and chief executive officer, said, "Fourth-quarter earnings from our core businesses were the strongest of the year. Our nonperforming assets declined by nearly $100 million in the fourth quarter, the largest of four consecutive quarterly declines during the year. We expect continued strong performance from our core businesses and continued improvement in asset quality in 1992. Our expectations are based on the assumption of a modest economic recovery in the second half of the year."
 The allowance for credit losses as a percentage of total nonperforming loans increased to 104.7 percent, compared with 95.6 percent at the end of the third quarter and 77.0 percent at year-end 1990.
 Nonperforming assets, which include nonperforming loans and foreclosed assets, totaled $1.08 billion at Dec. 31, 1991, a decline of approximately $100 million from $1.18 billion at the end of the third quarter and a decline of $221.1 million from $1.30 billion a year ago. The ratio of nonperforming assets to loans and foreclosed assets at Dec. 31 was 4.21 percent compared with 4.60 percent at Sept. 30 and 4.67 percent a year ago.
 Nonperforming loans totaled $761 million, compared with $861 million at the end of the third quarter and $1.0 billion at year-end 1990.
 PNC's leverage capital ratio at Dec. 31, 1991, was 7.81 percent, up from 6.64 percent at the end of the third quarter and 5.62 percent at year-end 1990. PNC estimates its Tier I Risk-based Capital ratio at 9.60 percent compared with 8.43 percent at the end of the third quarter and 7.12 percent at year-end 1990. The Total Risk-based Capital ratio is estimated to be 12.0 percent, compared with 10.90 at the end of the third quarter and 9.35 at year-end 1990.
 In 1991, net interest income on a taxable-equivalent basis was $1.5 billion, a 3.4 percent increase from 1990. The net interest margin increased 33 basis points year-to-year to 3.73 percent.
 The return on average total assets for the year was .91 percent and return on average common shareholders' equity was 14.02 percent. These results compare with .16 percent and 2.46 percent, respectively, for 1990.
 PNC's provision for credit losses was $428.0 million in 1991, compared with $760.5 million a year earlier. Net charge-offs for the year were $398.2 million, compared with $591.9 million for 1990.
 Noninterest income for 1991 was $812.0 million, $155.5 million higher than the preceding year. Trust revenues increased 9.7 percent in 1991. Service charges, fees and commissions increased 5.0 percent over the previous year. Net investment security gains were $70.0 million, versus $26.2 million in 1990. The increased level of security gains during 1991 was due to the balance sheet restructuring as a result of the First Federal acquisition and the repositioning of the investment portfolio to reduce prepayment risk resulting from a declining interest rate environment.
 Noninterest income for the current year included pre-tax gains of $92.7 million resulting from the sales of four Ohio banks and a major portion of the merchant processing business.
 Noninterest expenses totaled $1.3 billion for 1991, an increase of 4.5 percent over 1990. The increase was primarily attributable to higher FDIC premiums and incremental operating expenses related to the acquisitions of First Federal of Pittsburgh and Future Federal in Louisville. The increase in noninterest expenses was tempered by the sales of the Ohio banks and the merchant processing business.
 On Nov. 15, 1991, PNC issued 10.4 million shares of common stock and received $428.6 million in net proceeds. The average number of shares on a fully diluted basis for the full year was 100.7 million, compared with 104.9 million for the fourth quarter 1991 and 99.0 million for the third quarter.
 PNC Financial Corp, headquartered in Pittsburgh, is the nation's 15th-largest bank holding company, with assets of $44.9 billion. It operates approximately 500 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; Bank of Delaware, Wilmington, Del.; Northeastern Bank, Scranton, Pa.; Marine Bank, Erie, Pa.; PNC National Bank, Wilmington, Del.; Hershey Bank, Hershey, Pa.; and The First Bank and Trust Company, Mechanicsburg, Pa.
 /delval/
 -0- 1/13/92
 /CONTACT: Jonathan Williams, media, 412-762-4550, or home at 412-359-0979, or Sheila S. Fischl, investors, 412-762-8257, both of PNC Financial/
 /FIRST AND FINAL ADD -- TABULAR MATERIAL -- TO FOLLOW/
 (PNC) CO: PNC Financial Corp ST: Pennsylvania IN: FIN SU: ERN


DM -- PG001 -- 8955 01/13/92 09:19 EST
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Date:Jan 13, 1992
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