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PNC BANK CORP. EARNS $169.1 MILLION IN SECOND QUARTER

    PITTSBURGH, July 14 /PRNewswire/ --  PNC Bank Corp. (NYSE: PNC) today reported net income for the second quarter of 1993 of $169.1 million, or $.71 per fully diluted share compared with $127.6 million, or $.58 per fully diluted share reported for the second quarter of 1992.
    Return on assets and return on common shareholders' equity  were 1.35 percent and 17.59 percent, respectively, in the second quarter of 1993.
    Net income for the first six months of 1993 totaled $336.8 million or $1.41 per fully diluted share, compared with $150.6 million and $.68, respectively, for the first half of 1992, after the effect of accounting changes in both periods.  PNC Bank reported income before the accounting changes of $356.2 million, or $1.49 per share compared with $253.1 million, or $1.14 per share in 1992.
    "The second quarter demonstrates the earnings power of PNC Bank," said Thomas H. O'Brien, chairman and chief executive officer. "In a period unaffected by significant securities gains and non-recurring expense items, we have achieved our 25 percent profit margin goal."
    Net income in the second quarter reflected basic core earnings. Record net interest income of $455.6 million was slightly higher than in the first quarter, as benefits from earning asset volume more than offset a decline in margin.  Net interest income in the comparable 1992 period was $395.1 million.
    Margin declined to 3.96 percent as a result of lower loan fees, a reduced benefit from noninterest bearing funds, and accelerated prepayments of higher rate mortgage-backed debt as homeowners continued to refinance in the current low-rate environment.
    Noninterest income, excluding securities gains, increased by $12.7 million or 7.2 percent in the second quarter. Net security gains totaled $6.6 million in 1993, compared with $46.6 million in 1992.
    Total noninterest expenses of $345.1 million were $41.9 million lower than the first quarter and contained no significant non-recurring items. In the second quarter of 1992, noninterest expenses were $330.9 million.  The increase in the year-to-year comparison was primarily due to acquisitions completed in the second half of 1992.  The overhead ratio for the second quarter was 52.3 percent.
    PNC Bank's asset quality continued to improve with nonperforming assets (which include nonaccrual loans, restructured loans, and foreclosed assets) declining by $65 million since the first quarter to $675 million at June 30, 1993.  The ratio of nonperforming assets to total assets was 1.25 percent at the end of the quarter, compared with 1.60 percent at December 31, 1992, and 2.01 percent a year ago.  The ratio of nonperforming assets to total loans and foreclosed assets was 2.63 percent, compared with 3.14 percent at year end and 3.67 percent at June 30, 1992.  Nonperforming loans totaled $459 million at June 30, 1993, compared with $554 million at December 31, 1992, and $632 million a year ago.
    The second quarter provision for credit losses was $53.8 million compared with $100.2 million in the comparable 1992 period.  Net charge-offs were $48 million, compared with $58 million, in the corresponding 1992 period.  The allowance for credit losses increased to $917 million at June 30, 1993, and represented 199.6 percent of nonperforming loans compared with 162.1 percent at December 31, 1992, and 132.6 percent a year ago.
    PNC Bank's total assets were $53.8 billion at June 30, 1993, compared with $51.4 billion at year end and $45.5 billion at June 30, 1992.  Investment securities accounted for substantially all of the increase.  Shareholders' equity totaled $4.0 billion at June 30, 1993.  The leverage capital ratio was 7.80 percent, and estimated Tier I and total risk-based capital ratios were 10.5 percent and 12.6 percent, respectively.
    Net interest income on a taxable-equivalent basis for the first six months of 1993 increased 15.7 percent to $929.7 million as a result of a higher margin and increased earning assets.  Net interest margin for the first six months of 1993 was 4.04 percent, compared with 3.99 percent a year earlier.
    Excluding securities gains, noninterest income increased 8.4 percent to $362.9 million in the first six months of 1993.  Net securities gains totaled $111.8 million in 1993, compared with $125.8 million in 1992.
    Noninterest expenses totaled $732.2 million in the first six months of 1993 compared with $677.4 million in the corresponding 1992 period. The overhead ratio was 52.1 percent in 1993 compared with 53.6 percent in 1992.
    PNC Bank is one of the largest banking organizations in the United States, with $53.8 billion in assets at June 30, 1993, and more than 550 community banking offices throughout Pennsylvania, Delaware, Ohio, Kentucky and Indiana.  PNC Bank's major lines of business include 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, Ohio and Indiana.  Its 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 ratios and per share data)
                         Three Months Ended       Six Months Ended
                              June 30                 June 30
                          1993        1992        1993        1992
    FINANCIAL PERFORMANCE
    Net interest income
      (taxable-equivalent
      basis)          $466,134    $406,179    $929,702    $803,879
    Income before cumulative
      effect of changes
      in accounting
      principles       169,142     127,578     356,153     253,053
    Net income         169,142     127,578     336,760     150,552
    Earnings per common share
      Before cumulative
      effect of changes in
      accounting principles
      Primary              .71         .58        1.50        1.15
      Fully diluted        .71         .58        1.49        1.14
      Net income
      Primary              .71         .58        1.42         .69
      Fully diluted        .71         .58        1.41         .68
    Cash dividends
      declared per
      common share        .285        .265         .57         .53
      Average common shares
      outstanding
      Primary          236,561     219,758     236,241     219,166
      Fully diluted    238,751     222,636     238,545     222,292
    Net interest
      margin (pct.)       3.96        4.04        4.04        3.99
    Returns before cumulative
      effect of changes in
      accounting principles
      Return on average
        total assets      1.35        1.20        1.47        1.19
      Return on average
        common shareholders'
        equity           17.59       15.42       18.76       15.44
    Returns based on
      net income
      Return on average
        total assets      1.35        1.20        1.39         .71
      Return on average
        common shareholders'
        equity           17.59       15.42       17.73        9.15
    Average shareholders
      equity to average
      total assets        7.71        7.83        7.84        7.76
    Net charge-offs to
      average loans        .76         .96         .76        1.24
    Provision for credit
      losses to net
      charge-offs       112.08      172.79      120.72      126.38
    Overhead ratio       52.25       52.69       52.13       53.57
                                   June 30     Dec. 31     June 30
                                      1993        1992        1992
    PERIOD-END RATIOS
    Capital
      Leverage                        7.80 pct.   7.62 pct.   7.84 pct.
    Common shareholders'
        equity to total assets        7.32        7.23        7.39
    Asset quality
      Nonperforming loans to
        total loans                   1.81        2.14        2.57
      Nonperforming assets
        to total loans and
        foreclosed assets             2.63        3.14        3.67
      Nonperforming assets
        to total assets               1.25        1.60        2.01
      Allowance for credit
        losses to total loans         3.60        3.47        3.41
      Allowance for credit loses to
        nonperforming loans         199.57      162.08      132.58
    BOOK VALUE PER COMMON SHARE     $16.84      $15.96      $15.45
                         PNC BANK CORP. AND SUBSIDIARIES
                        Consolidated Statement of Income
                                  (In thousands)
                         Three Months Ended       Six Months Ended
                              June 30                 June 30
                          1993        1992        1993        1992
    INTEREST INCOME
    Loans and fees
      on loans        $475,335    $490,009    $961,554  $1,003,225
    Short-term
      investments        4,089       6,902       9,871      18,498
    Securities         315,936     278,350     614,433     567,516
    Other                5,116       5,496       8,171      11,391
      Total interest
        income         800,476     780,757   1,594,029   1,600,630
    INTEREST EXPENSE
    Deposits           188,536     275,031     387,713     600,909
    Borrowed funds     122,969      90,408     238,272     177,881
    Notes and
      debentures        33,325      20,220      58,707      40,454
      Total interest
        expense        344,830     385,659     684,692     819,244
      Net interest
        income         455,646     395,098     909,337     781,386
    Provision for
      credit losses     53,814     100,186     115,231     190,606
    Net interest income
      less provision for
      credit losses    401,832     294,912     794,106     590,780
    NONINTEREST INCOME
    Trust               69,093      67,762     135,366     133,086
    Service charges, fees
      & commissions     96,986      87,415     186,325     173,904
    Trading account
      profits            1,157       1,278       3,671          48
    Net securities
      gains              6,616      46,580     111,777     125,801
    Other               20,582      18,702      37,576      27,762
      Total noninterest
        income         194,434     221,737     474,715     460,601
    NONINTEREST EXPENSES
    Compensation and
      benefits         169,936     159,449     346,340     316,607
    Net occupancy
    and equipment       54,773      48,958     113,092      99,587
    Other              120,439     122,468     272,731     261,236
      Total noninterest
        expenses       345,148     330,875     732,163     677,430
    Income before
      income taxes
      and cumulative
      effect of changes
      in accounting
      principles       251,118     185,774     536,658     373,951
    Applicable income
      taxes             81,976      58,196     180,505     120,898
    Income before
      cumulative effect
      of changes in
      accounting
      principles       169,142     127,578     356,153     253,053
    Cumulative effect
      of changes in
      accounting
      principles,
      net of tax benefits
      of $5,343 and
      $52,804                                  (19,393)   (102,501)
    Net income        $169,142    $127,578    $336,760    $150,552
                     PNC BANK CORP. AND SUBSIDIARIES
                        Consolidated Balance Sheet
                           (Dollars in millions)
                                   June 30     Dec. 31     June 30
                                      1993        1992        1992
    ASSETS
    Cash and due from banks         $2,353      $2,117      $1,917
    Short-term investments             451       1,165         261
    Securities available for sale,
      market value of $5,791,
      $7,552 and $2,813              5,679       7,414       2,747
    Investment securities,
      market value of $18,590,
      $13,430 and $15,083           18,159      13,327      14,764
    Loans, net of unearned
      income                        25,434      25,817      24,567
    Allowance for credit losses       (917)       (897)       (837)
      Net loans                     24,517      24,920      23,730
    Other                            2,659       2,437       2,036
      Total assets                 $53,818     $51 ? $45,455
    LIABILITIES
    Deposits
      Noninterest-bearing           $6,172      $5,890      $5,141
      Interest-bearing              22,331      23,580      22,954
      Total deposits                28,503      29,470      28,095
    Borrowed funds                  14,036      14,736      11,546
    Notes and debentures             3,808       1,372       1,331
    Other                            3,510       2,056       1,090
      Total liabilities             49,857      47,634      42,062
    SHAREHOLDERS' EQUITY             3,961       3,746       3,393
      Total liabilities and
        shareholders' equity       $53,818     $51,380     $45,455
    COMMON SHAREHOLDERS' EQUITY     $3,940      $3,713      $3,358
    COMMON SHARES OUTSTANDING  233,909,151 232,573,253 217,494,136
                       PNC BANK CORP. AND SUBSIDIARIES
                           Statistical Information
    AVERAGE BALANCE SHEET
                         Three Months Ended       Six Months Ended
                              June 30                 June 30
    In millions           1993        1992        1993        1992
    ASSETS
    Loans, net of
      unearned income
      Commercial       $10,705     $10,402     $10,641     $10,545
      Real estate
        project          1,876       2,011       1,901       2,034
      Real estate
        mortgage         3,892       3,441       3,960       3,537
      Consumer           7,858       7,443       7,831       7,354
      Other                853         937         866         965
        Total loans     25,184      24,234      25,199      24,435
    Securities          21,184      15,062      20,088      14,722
    Other earning
      assets               707         919         746       1,062
    Total earning
      assets            47,075      40,215      46,033      40,219
    Other                3,077       2,468       2,946       2,486
      Total assets     $50,152     $42,683     $48,979     $42,705
    LIABILITIES
    Deposits
      Interest-
        bearing        $22,712     $23,733     $22,874     $24,258
      Noninterest-
        bearing          5,379       4,599       5,216       4,543
     Total deposits     28,091      28,332      28,090      28,801
    Borrowed funds      14,155       8,912      13,570       8,518
    Notes and
      debentures         2,908       1,296       2,414       1,303
    Other                1,129         800       1,064         771
      Total
        liabilities     46,283      39,340      45,138      39,393
    SHAREHOLDERS'
      EQUITY             3,869       3,343       3,841       3,312
      Total liabilities
       and shareholders'
        equity         $50,152     $42,683     $48,979     $42,705
    COMMON SHAREHOLDERS'
      EQUITY            $3,847      $3,307      $3,818      $3,276
                      PNC BANK CORP. AND SUBSIDIARIES
                    Statistical Information (continued)
    NONPERFORMING ASSETS
                                   June 30     Dec. 31     June 30
    In millions                       1993        1992        1992
    NONACCRUAL LOANS
    Commercial                        $238        $316        $394
    Real estate                        215         213         227
      Total nonaccrual loans           453         529         621
    RESTRUCTURED LOANS
    Commercial                           5          11           6
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Copyright 1993 Gale, Cengage Learning. All rights reserved.

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Date:Jul 14, 1993
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