DUFF & PHELPS: NATIONAL CITY BANK (CLEVELAND) $125 MILLION SUBORDINATED NOTES RATED 'AA-', (COLUMBUS) $75 MILLION SUBORDINATED NOTES RATED 'A+'
CHICAGO, April 22 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned ratings to subordinated note offerings by two subsidiary banks of National City Corporation. The $125 million offering by National City Bank (Cleveland) has been assigned a rating of `AA-' (Double-A-Minus). The $75 million offering by National City Bank, Columbus is rated `A+' (Single-A-Plus). The notes are due May 1, 2003. The ratings reflect the overall solid financial condition of National City Corporation and the two subsidiary banks. National City Corporation has produced superior levels of profitability, while improving asset quality and maintaining above average levels of capital. The company has effectively integrated its May 1992 acquisition of Merchants National of Indianapolis, reducing problem assets and improving the earnings performance. National City Cleveland reported 1992 earnings of $137 million, 1.77 percent ROA, compared with $116 million, 1.47 percent in 1991. Adoption of FAS 109 (income taxes) reduced 1992 net income by $10 million. Nonperforming assets equaled 1.64 percent of loans and OREO at Dec. 31, 1992, while net charge-offs were a low .44 percent of average loans. The loan loss reserve is strong at 1.88 percent of loans and 149 percent of nonperforming loans. The leverage ratio equaled a strong 8.00 percent at Dec. 31, 1992. National City Columbus reported 1992 earnings of $95 million, 1.69 percent ROA, compared with $35 million, .58 percent, in 1991. Net income in 1992 was increased by $17.6 million by the adoption of FAS 109. Nonperforming assets were 2.37 percent of loans and OREO at Dec. 31, 1992, while net charge-offs for 1992 equaled 1.11 percent. The loan loss reserve is very strong equaling 3.06 percent of loans and 266 percent of nonperforming loans at year end 1992. Leverage equaled 7.40 percent at Dec. 31, 1992. National City Corporation is a super-regional bank holding company headquartered in Cleveland and controls 15 banks located throughout Ohio, Kentucky and Indiana. National City reported total assets of $27.8 billion at March 31, 1993. -0- 4/22/93 /CONTACT: Charles J. Orabutt Jr., CPA of Duff & Phelps Credit Rating Co., 312-368-3153/ (NCC)
CO: National City Corporation ST: Ohio IN: FIN SU: RTG
WB -- NY131 -- 9710 04/22/93 16:37 EDT
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|Date:||Apr 22, 1993|
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