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PNC EARNS $127.7 MILLION IN FIRST QUARTER

 PNC EARNS $127.7 MILLION IN FIRST QUARTER
 PITTSBURGH, April 16 /PRNewswire/ -- PNC Financial Corp


(NYSE: PNC) today reported consolidated net income of $127.7 million for the first quarter of 1992 compared with $88.4 million reported last year.
 Fully diluted earnings per common share were $1.16, compared with $.91 in 1991.
 Thomas H. O'Brien, chairman and chief executive officer of PNC, said, "The strength of our net interest margin, continued control of costs and the overall strength of our business units enabled us to have a solid performance in the first quarter."
 Significant actions were taken during the quarter to strengthen PNC's reserve coverage of nonperforming loans to 114 percent and write down foreclosed assets to facilitate liquidation. In addition, estimated expenses were accrued to cover the costs associated with the consolidation of PNC's six Pennsylvania banks and the development of a common corporate identity system.
 The provision for credit losses was $90.4 million for the quarter; coverage of nonperforming loans increased to 114 percent from 105 percent at year end; and valuation adjustments in the amount of $7.5 million were taken during the quarter to further reduce the carrying value of foreclosed property.
 Nonperforming assets declined to approximately $1 billion. This represents the fifth consecutive quarter of declining nonperforming assets. The ratio of nonperforming assets to loans and foreclosed property was 3.99 percent at the end of the quarter, compared with 4.21 percent at year end and 4.48 percent a year ago. Nonperforming loans totaled $698.3 million, compared with $761.2 million at year-end 1991 and $976.2 million at March 31, 1991, a year-to-year decline of 28.5 percent.
 PNC's leverage ratio at March 31, 1992, was 7.87 percent, up from 7.81 percent at year end and 5.80 percent in the prior year. The Tier 1 Risk-Based Capital ratio is estimated to be 10.1 percent at March 31, 1992, compared with 9.69 percent at year end and 7.22 percent at the end of the 1991 first quarter. The Total Risk-Based Capital ratio is estimated at 12.4 percent, compared with 12.13 percent at year end and 9.60 percent at March 31, 1991.
 Average earning assets stood at $40.2 billion for the period, compared with $41.8 billion in the first quarter last year.
 Net interest income on a taxable-equivalent basis for the first quarter was $397.7 million, a 9.2 percent increase from the same period in 1991. The net interest margin was 3.95 percent. The net interest margin in the fourth quarter of 1991 was 3.90 percent and 3.47 percent in the first quarter of 1991.
 Core fee income, comprised of trust revenues and service charges, fees and commissions, increased 4.3 percent over 1991 to $151.8 million. Trust revenues were up by 11.8 percent. Service charges, fees and commissions were relatively unchanged in the comparison, reflecting the sale in the third quarter last year of four Ohio banks and a large portion of PNC's merchant service processing business.
 Pretax gains of $81 million resulted from the sale of securities which were held for sale at year end.
 Noninterest expenses totaled $343.2 million, compared with $308.1 million in the first quarter of 1991. Among the leading factors in the increase were charges for consolidation and corporate identity projects, valuation adjustments, and various expense accruals in the amount of approximately $35 million.
 The overhead ratio, a relative measurement of the costs associated with generating revenues, improved to 53.9 percent, compared with 56.3 percent for the same quarter last year.
 Return on average total assets for the most recent quarter was 1.20 percent and return on average common shareholders' equity was 15.24 percent, compared with .80 percent and 13.63 percent, respectively, in the first quarter of 1991.
 PNC Financial Corp, headquartered in Pittsburgh, is the nation's 15th largest bank holding company, with assets of $43.8 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 Fidet?y 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.
 PNC FINANCIAL CORP AND SUBSIDIARIES
 Financial Highlights
 (Dollars in thousands, except per share data)
 Three months ended March 31 1992 1991
 FINANCIAL PERFORMANCE
 Net interest income
 (taxable-equivalent basis) $397,700 $364,241
 Net income 127,685 88,398
 Earnings per common share
 Primary 1.17 .92
 Fully diluted 1.16 .91
 Average common
 shares outstanding
 Primary 109,274 96,149
 Fully diluted 110,713 98,126
 Net interest margin 3.95 pct. 3.47 pct.
 Return on average
 total assets 1.20 .80
 Return on average
 shareholders' equity 15.17 13.56
 Return on average
 common shareholders' equity 15.24 13.63
 Average shareholders' equity
 to average total assets 7.92 5.92
 Net charge-offs to
 average loans 1.52 1.28
 Provision for credit losses
 to net charge-offs 97.40 113.57
 Overhead ratio 53.92 56.28
 March 31 Dec. 31 March 31
 1992 1991 1991
 PERIOD-END RATIOS
 Capital
 Leverage 7.87pct. 7.81pct. 5.80pct.
 Common shareholders' equity
 to total assets 7.70 7.31 5.91
 Credit quality
 Nonperforming loans
 to total loans 2.81 2.99 3.42
 Nonperforming assets to
 total loans and
 foreclosed assets 3.99 4.21 4.48
 Allowance for credit losses
 to total loans 3.20 3.13 2.81
 Allowance for credit losses
 to nonperforming loans 113.83 104.71 82.14
 BOOK VALUE PER COMMON SHARE $31.20 $30.53 $27.24
 PNC FINANCIAL CORP AND SUBSIDIARIES
 Consolidated Statement of Income
 (In thousands, except per share data)
 Three months ended March 31 1992 1991
 INTEREST INCOME
 Loans and fees on loans $513,216 $699,464
 Deposits with banks 2,573 7,607
 Federal funds sold and resale agreements 5,628 12,452
 Trading account securities 3,395 1,429
 Investment securities
 Taxable 278,962 242,307
 Tax-exempt 9,497 12,196
 Dividends 707 1,227
 Other 5,895 4,914
 Total interest income 819,873 981,596
 INTEREST EXPENSE
 Deposits 325,878 490,365
 Borrowed funds 87,473 119,031
 Notes and debentures 20,234 24,991
 Total interest expense 433,585 634,387
 Net interest income 386,288 347,209
 Provision for credit losses 90,420 103,108
 Net interest income less
 provision for credit losses 295,868 244,101
 NONINTEREST INCOME
 Trust 65,324 58,442
 Service charges, fees and commissions 86,489 87,096
 Trading account profits (losses) (1,230) 2,299
 Net equity and
 other security gains (losses) (755) 1,475
 Net debt security gains 81,746 20,889
 Other 7,290 12,948
 Total noninterest income 238,864 183,149
 NONINTEREST EXPENSES
 Compensation 123,733 124,265
 Employee benefits 30,076 27,046
 Net occupancy 26,413 24,945
 Equipment 24,216 24,724
 Federal deposit insurance 16,566 15,034
 Other 122,202 92,084
 Total noninterest expenses 343,206 308,098
 Income before income taxes 191,526 119,152
 Applicable income taxes 63,841 30,754
 Net income $127,685 $88,398
 EARNINGS PER COMMON SHARE
 Primary $1.17 $.92
 Fully diluted 1.16 .91
 PNC FINANCIAL CORP AND SUBSIDIARIES
 Consolidated Balance Sheet
 (Dollars in thousands, except par values)
 March 31 Dec. 31 March 31
 1992 1991 1991
 ASSETS
 Cash and due from banks $1,760,264 $2,100,983 $1,868,397
 Interest-earning deposits
 with banks 230,875 245,070 455,697
 Federal funds sold
 and resale agreements 270,450 1,328,225 389,574
 Trading account securities 27,625 294,545 122,544
 Investment securities, market
 value of $15,420,339;
 $14,734,016 and $11,505,529 15,233,442 14,172,550 11,440,459
 Loans, net of unearned income
 of $664,714; $703,822
 and $688,868 24,828,561 25,443,068 28,562,809
 Allowance for credit losses (794,922) (796,983) (801,855)
 Net loans 24,033,639 24,646,085 27,760,954
 Customers' acceptance
 liability 123,275 81,929 127,911
 Premises, equipment and
 leasehold improvements 448,970 429,726 464,908
 Other 1,689,772 1,592,575 1,644,432
 Total assets $43,818,312 $44,891,688 $44,274,876
 LIABILITIES
 Deposits
 Noninterest-bearing 4,781,532 5,095,040 4,580,422
 Interest-bearing demand,
 money market and savings 9,422,211 9,062,506 8,446,113
 Certificates of deposit
 and other time 13,917,656 15,125,845 19,068,866
 In foreign offices 1,032,921 736,010 336,373
 Total deposits 29,154,320 30,019,401 32,431,774
 Borrowed funds
 Federal funds purchased 2,509,254 1,579,805 2,392,947
 Repurchase agreements 4,938,279 3,883,715 3,244,486
 Commercial paper 478,116 557,909 417,133
 Other 1,183,952 3,464,951 1,325,697
 Total borrowed funds 9,109,601 9,486,380 7,380,263
 Acceptances outstanding 123,275 81,929 133,198
 Notes and debentures 1,345,352 1,287,450 954,932
 Accrued expenses and
 other liabilities 674,526 699,736 720,691
 Total liabilities 40,407,074 41,574,896 41,620,858
 SHAREHOLDERS' EQUITY
 Preferred stock--$1 par value
 Authorized: 18,020,907;
 18,057,123 and 18,160,456
 Issued and outstanding:
 1,659,352; 1,689,191
 and 1,790,518 1,659 1,689 1,791
 Aggregate liquidation
 value: $36,562; $37,166
 and $39,282
 Common stock--$5 par value
 Authorized: 250,000,000
 Issued: 108,177,724;
 107,412,004 and
 96,005,288 540,889 537,060 480,026
 Capital surplus 896,372 880,459 480,548
 Retained earnings 2,090,975 2,016,491 1,820,839
 Deferred ESOP benefit expense (118,090) (118,900) (129,030)
 Common stock held in treasury
 at cost: 11,349;
 171 and 5,209 (567) (7) (156)
 Total shareholders' equity 3,411,238 3,316,792 2,654,018
 Total liabilities and
 shareholders' equity $43,818,312 $44,891,688 $44,274,876
 PNC FINANCIAL CORP AND SUBSIDIARIES
 Statistical Information
 AVERAGE BALANCE SHEET
 In millions
 Three months ended 1992 1991
 ASSETS
 Loans, net of unearned income $24,636 $28,794
 Investment securities 14,381 11,402
 Other earning 1,205 1,608
 Total earning assets 40,222 41,804
 Other 2,505 2,805
 Total assets $42,727 $44,609
 LIABILITIES
 Deposits
 Interest-bearing $24,783 $28,425
 Noninterest-bearing 4,486 4,419
 Total deposits 29,269 32,844
 Borrowed funds 8,125 7,163
 Notes and debentures 1,310 1,342
 Other 638 616
 Total liabilities 39,342 41,965
 SHAREHOLDERS' EQUITY 3,385 2,644
 Total liabilities and
 shareholders' equity $42,727 $44,609
 COMMON SHAREHOLDERS' EQUITY $3,348 $2,605
 ALLOWANCE FOR CREDIT LOSSES
 In thousands
 Three months ended 1992 1991
 Balance at January 1 $796,983 $784,533
 Net charge-offs (92,835) (90,786)
 Provision for credit losses 90,420 103,108
 Acquisition 354 5,000
 Balance at March 31 $794,922 $801,855
 NONPERFORMING ASSETS March 31 Dec. 31 March 31
 In thousands 1992 1991 1991
 NONPERFORMING LOANS
 Commercial
 Communications $75,374 $72,185 $105,786
 Manufacturing 76,099 64,096 92,213
 Services 70,466 72,278 116,374
 Retail/Wholesale 47,009 56,316 66,952
 Real estate related 30,388 34,204 78,191
 Financial services 24,696 23,384 1,100
 Equine 24,676 23,080 9,759
 Transportation 22,888 24,204 42,998
 Construction 7,626 16,526 19,533
 Oil and gas 3,787 4,591 11,446
 Public utilities 0 13,600 1,028
 Other 56,444 61,212 45,933
 Total commercial 439,453 465,676 591,313
 Real estate
 Projects 240,927 269,708 357,925
 Residential mortgage 7,141 5,916 6,647
 Commercial mortgage 5,886 10,420 4,574
 Total real estate 253,954 286,044 369,146
 Foreign 4,916 9,440 15,736
 Total nonperforming loans 698,323 761,160 976,195
 FORECLOSED ASSETS
 Commercial 41,085 33,797 42,246
 Real estate
 Projects 259,706 285,094 269,546
 Residential mortgage 620 256 295
 Commercial mortgage 602 969 2,947
 Total real estate 260,928 286,319 272,788
 Foreign 2,300 2,300 2,800
 Total foreclosed assets 304,313 322,416 317,834
 Total nonperforming assets $1,002,636 $1,083,576 $1,294,029
 NONPERFORMING HLT ASSETS March 31 Dec. 31 March 31
 In thousands 1992 1991 1991
 NONPERFORMING LOANS
 Communications $48,008 $41,321 $68,703
 Transportation 11,372 11,504 21,336
 Retail/Wholesale 11,255 2,100 19,026
 Services 10,344 13,925 28,691
 Real estate related 6,104 7,896 23,825
 Manufacturing 3,551 5,352 22,859
 Total nonperforming loans 90,634 82,098 184,440
 FORECLOSED ASSETS 0 0 17,820
 Total nonperforming
 HLT assets $90,634 $82,098 $202,260
 /delval/
 -0- 4/16/92
 /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/
 (PNC) CO: PNC Financial Corp ST: Pennsylvania IN: FIN SU: ERN


DM -- PG010 -- 9194 04/16/92 10:44 EDT
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