DUFF & PHELPS: PITTSBURGH NATIONAL BANK $500 MILLION BANK NOTES RATED 'AA'
CHICAGO, Oct. 28 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of 'AA' (Double-A) to Pittsburgh National Bank's $500 million issue of bank notes. The non-callable notes were priced at par with a 3.547 percent yield to maturity and are due November 3, 1994. Pittsburgh National Bank is the lead bank subsidiary of PNC Bank Corp. (NYSE: PNC). The rating reflects Pittsburgh National Bank's, as well as PNC's, superior overall financial condition. The balance sheet has been strengthened as capital measures have grown, loan loss reserves have been enhanced, and asset quality is solid. Liquidity is excellent. Operating profitability is also very strong. These solid fundamentals were reflected in PNC Bank Corp.'s third quarter performance. Net income equaled $218 million, 1.72 percent return on assets, compared with $133 million, 1.17 percent, in 1992. After-tax securities gains were $47 million and $12 million in the 1993 and 1992 period, respectively with adjusted ROA equaling 1.36 percent in 1993 and 1.07 in 1992. Excellent control of overhead expense, solid non-interest income generation, and relatively low credit-related costs are key drivers of the strong profitability. Balance sheet measures also improved in the quarter. Non-performing assets declined to 2.25 percent of loans and other real estate owned at September 30, 1993, compared with 2.63 percent at mid-year 1993 and 3.14 percent at year-end 1992. The loan loss reserve equaled 224 percent of nonaccrual loans at the close of the third quarter. Stockholders' equity was a large 7.9 percent of total assets at September 30, 1993. PNC Bank Corp., reported total assets of $52.3 billion at September 30, 1993, with Pittsburgh National Bank representing about 75 percent of consolidated assets. -0- 10/28/93 /CONTACT: Charles J. Orabutt, Jr., CPA, CFA, of Duff & Phelps Credit Rating Co., 312-368-3153/ (PNC)
CO: Pittsburgh National Bank; PNC Bank Corp. ST: Pennsylvania IN: FIN SU: RTG
MP -- NY082 -- 7916 10/28/93 12:23 EDT