Printer Friendly

PNC EARNS $129.8 MILLION IN SECOND QUARTER

 PNC EARNS $129.8 MILLION IN SECOND QUARTER
 PITTSBURGH, July 23 /PRNewswire/ -- PNC Financial Corp (NYSE: PNC)


today reported consolidated net income of $129.8 million, or $1.17 per fully diluted share, for the second quarter of 1992, compared with $93.6 million, or $.95 per fully diluted share, reported for the second quarter last year.
 Consolidated net income for the first six months of 1992 totaled $257.5 million or $2.33 per fully diluted share. This compares with $182.0 million and $1.85, respectively, for the first half of 1991.
 Thomas H. O'Brien, chairman and chief executive officer of PNC, stated, "The second quarter represented another positive step in the achievement of our key strategic objectives: improving asset quality, strong core earnings, increased reserve coverage and capital levels among the highest of the nation's largest banks. The quarter was also marked by substantial progress in our move to operate as one bank on a line-of-business basis."
 PNC, the nation's 13th-largest banking company, ended the quarter with $45.5 billion in assets. On an annualized basis, return on average total assets was 1.21 percent for the first six months and return on average common shareholders' equity was 15.23 percent. These results compare with .84 percent and 13.76 percent, respectively, for the first six months of 1991.
 Total nonperforming assets, which include nonaccrual loans, restructured loans and foreclosed assets, declined 9.1 percent to $911.7 million at June 30, 1992, the sixth consecutive quarterly decline in nonperforming assets. The ratio of nonperforming assets to total loans and foreclosed assets was 3.67 percent at the end of the quarter, compared with 3.99 percent last quarter and 4.21 percent at Dec. 31, 1991. Nonperforming loans totaled $631.4 million at June 30, 1992, compared with $698.3 million last quarter and $761.2 million at Dec. 31, 1991.
 The provision for credit losses in the second quarter totaled $100.2 million and net charge-offs were $58.0 million. This compares with $90.4 million and $92.8 million, respectively, in the first quarter of 1992 and $103.7 million and $95.6 million in the second quarter a year ago. The allowance for credit losses of $837.1 million at June 30 was 132.6 percent of nonperforming loans compared with 113.8 percent at March 31 and 104.7 percent at year end. In addition, valuation adjustments of $10.4 million were taken in the quarter to reduce further the carrying value of foreclosed assets.
 Shareholders' equity totaled $3.5 billion at June 30, 1992. The leverage capital ratio was 8.1 percent, while Tier I and total risk-based capital ratios are estimated to be 10.4 percent and 12.7 percent, increasing from 7.9 percent, 10.1 percent and 12.4 percent, respectively at March 31, 1992. PNC was ranked second in the leverage capital ratio and third for the Tier I risk-based capital ratio among the 25 largest U.S. bank holding companies at the end of the first quarter.
 On a taxable-equivalent basis, net interest income for the first six months increased 8.9 percent to $803.9 million from 1991. Average earning assets declined 2.0 percent to $40.2 billion in the first half of 1992. The net interest margin was 3.99 percent, compared with 3.59 percent a year earlier.
 Core fee income, which includes trust revenues and fees, service charges and commissions, increased 2.3 percent in the first six months over 1991 to $307.0 million. Adjusting for the sale of a substantial portion of the merchant processing business, four Ohio banks and certain other transactions, core fee income increased by approximately 11 percent on a comparable basis.
 Earnings for the second quarter included pre-tax net security gains of $51.4 million compared with $81.0 million for the first quarter and $22.9 million for the second quarter a year ago.
 Noninterest expenses totaled $670.7 million for the first six months compared with $626.2 million in the first six months of 1991. The primary factors responsible for the increase were accruals relating to consolidation and corporate identity projects, valuation adjustments and various expenses.
 The overhead ratio was 53.0 percent for the first six months of 1992 compared with 56.1 percent for the first half of last year.
 PNC Financial Corp, headquartered in Pittsburgh, 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.
 PNC FINANCIAL CORP AND SUBSIDIARIES
 Financial Highlights
 (Dollars in thousands, except per share data)
 Three Months Ended Six Months Ended
 June 30 June 30
 1992 1991 1992 1991
 FINANCIAL PERFORMANCE
 Net interest income
 (taxable-equivalent
 basis) $406,179 $374,003 $803,879 $738,244
 Net income 129,788 93,575 257,473 181,973
 Earnings per common share
 Primary $1.18 $.96 $2.35 $1.87
 Fully diluted $1.17 $.95 $2.33 $1.85
 Average common
 shares outstanding
 Primary 109,879 96,944 109,583 96,569
 Fully diluted 111,318 98,613 111,146 98,445
 Net interest
 margin 4.04pct. 3.70pct. 3.99pct. 3.59pct.
 Return on average
 total assets 1.22 .87 1.21 .84
 Return on average
 shareholders'
 equity 15.14 13.81 15.16 13.69
 Return on average
 common shareholder'
 equity 15.21 13.89 15.23 13.76
 Average shareholders
 equity to average
 total assets 8.08 6.31 8.00 6.12
 Net charge-offs to
 average loans .96 1.37 1.24 1.32
 Provision for credit
 losses to net
 charge-offs 172.79 108.43 126.38 110.94
 Overhead ratio 52.16 55.84 53.04 56.06
 June 30 March 31 Dec. 31 June 30
 1992 1992 1991 1991
 PERIOD-END RATIOS
 Capital
 Leverage 8.09pct. 7.87pct. 7.81pct. 6.25pct.
 Common shareholders'
 equity to total
 assets 7.62 7.70 7.31 6.27
 Credit quality
 Nonperforming
 loans to
 total loans 2.57 2.81 2.99 3.21
 Nonperforming assets
 to total loans
 and foreclosed
 assets 3.67 3.99 4.21 4.40
 Allowance for credit
 losses to
 total loans 3.41 3.20 3.13 2.98
 Allowance for
 credit losses
 to nonperforming
 loans 132.58 113.83 104.71 92.89
 BOOK VALUE PER
 COMMON SHARE $31.86 $31.20 $30.53 $28.20
 PNC FINANCIAL CORP AND SUBSIDIARIES
 Consolidated Statement of Income
 (In thousands, except per share data)
 Three Months Ended Six Months Ended
 June 30 June 30
 1992 1991 1992 1991
 INTEREST INCOME
 Loans and fees
 on loans $490,009 $657,055 $1,003,225 $1,356,519
 Deposits with
 banks 1,916 5,927 4,489 13,534
 Federal funds sold
 and resale
 agreements 3,913 5,288 9,541 17,740
 Trading account
 securities 1,073 1,825 4,468 3,254
 Securities
 Taxable 268,554 238,376 547,516 480,683
 Tax-exempt 9,046 11,319 18,543 23,515
 Dividends 750 752 1,457 1,979
 Other 5,496 5,973 11,391 10,887
 Total interest
 income 780,757 926,515 1,600,630 1,908,111
 INTEREST EXPENSE
 Deposits 275,031 448,223 600,909 938,588
 Borrowed funds 90,408 94,555 177,881 213,586
 Notes and
 debentures 20,220 24,776 40,454 49,767
 Total interest
 expense 385,659 567,554 819,244 1,201,941
 Net interest
 income 395,098 358,961 781,386 706,170
 Provision for
 credit losses 100,186 103,654 190,606 206,762
 Net interest income
 less provision for
 credit losses 294,912 255,307 590,780 499,408
 NONINTEREST INCOME
 Trust 67,762 61,227 133,086 119,669
 Service charges, fees
 & commissions 87,415 93,342 173,904 180,438
 Trading account
 profits 1,278 5,102 48 7,401
 Net equity and other
 security gains
 (losses) 4,070 (716) 3,315 759
 Net debt security
 gains 47,302 23,634 129,048 44,523
 Other 13,910 13,170 21,200 26,118
 Total noninterest
 income 221,737 195,759 460,601 378,908
 NONINTEREST EXPENSES
 Compensation 128,301 124,166 252,034 248,431
 Employee
 benefits 27,799 27,140 57,875 54,186
 Net occupancy 26,319 25,812 52,732 50,757
 Equipment 22,639 23,065 46,855 47,789
 Federal deposit
 insurance 16,556 15,041 33,122 30,075
 Other 105,912 102,904 228,114 194,988
 Total noninterest
 expenses 327,526 318,128 670,732 626,226
 Income before
 income taxes 189,123 132,938 380,649 252,090
 Applicable income
 taxes 59,335 39,363 123,176 70,117
 Net income $129,788 $93,575 $257,473 $181,973
 EARNINGS PER COMMON SHARE
 Primary $1.18 $.96 $2.35 $1.87
 Fully diluted $1.17 $.95 $2.33 $1.85
 PNC FINANCIAL CORP AND SUBSIDIARIES
 Consolidated Balance Sheet
 (Dollars in thousands, except par values)
 June 30 Dec. 31 June 30
 1992 1991 1991
 ASSETS
 Cash and due from banks $1,917,026 $2,100,983 $1,924,926
 Interest-earning deposits
 with banks 94,376 245,070 321,536
 Federal funds sold
 and resale agreements 101,376 1,328,225 622,409
 Trading account securities 65,157 294,545 59,513
 Investment securities, market
 value of $15,083,285;
 $13,104,351 and
 $11,676,319 14,763,992 12,617,303 11,665,532
 Securities held for sale 2,746,854 1,555,247
 Loans, net of unearned income
 of $636,438; $703,822
 and $645,712 24,566,701 25,443,068 27,145,568
 Allowance for credit losses (837,128) (796,983) (809,916)
 Net loans 23,729,573 24,646,085 26,335,652
 Customers' acceptance
 liability 107,601 81,929 100,136
 Premises, equipment and
 leasehold improvements 484,628 429,726 461,883
 Other 1,444,003 1,592,575 1,838,551
 Total assets $45,454,586 $44,891,688 $43,330,138
 LIABILITIES
 Deposits
 Noninterest-bearing $5,141,174 $5,095,040 $4,748,900
 Interest-bearing demand,
 money market and savings 9,443,757 9,062,506 8,555,382
 Certificates of deposit
 and other time 12,860,331 15,125,845 17,860,851
 In foreign offices 649,465 736,010 386,530
 Total deposits 28,094,727 30,019,401 31,551,663
 Borrowed funds
 Federal funds purchased 2,446,796 1,579,805 1,955,843
 Repurchase agreements 4,606,626 3,883,715 3,371,974
 Commercial paper 370,342 557,909 341,721
 Other 4,122,296 3,464,951 1,655,536
 Total borrowed funds 11,546,060 9,486,380 7,325,074
 Acceptances outstanding 107,601 81,929 100,136
 Notes and debentures 1,330,784 1,287,450 948,853
 Accrued expenses and
 other liabilities 875,252 699,736 646,989
 Total liabilities 41,954,424 41,574,896 40,572,715
 SHAREHOLDERS' EQUITY
 Preferred stock--$1 par value
 Authorized: 17,959,155;
 18,057,123 and 18,128,642
 Issued and outstanding:
 1,601,787; 1,689,191
 and 1,758,968 1,602 1,689 1,759
 Aggregate liquidation
 value: $35,385; $37,166
 and $38,627
 Common stock--$5 par value
 Authorized: 250,000,000
 Issued: 108,747,068;
 107,412,004 and
 96,405,811 543,735 537,060 482,029
 Capital surplus 909,776 880,459 488,095
 Retained earnings 2,162,457 2,016,491 1,913,370
 Deferred ESOP
 benefit expense (117,280) (118,900) (127,660)
 Common stock held in treasury
 at cost: 2,454;
 171 and 4,677 (128) (7) (170)
 Total shareholders'
 equity 3,500,162 3,316,792 2,757,423
 Total liabilities and
 shareholders' equity $45,454,586 $44,891,688 $43,330,138
 PNC FINANCIAL CORP AND SUBSIDIARIES
 Statistical Information
 AVERAGE BALANCE SHEET
 Three Months Ended Six Months Ended
 June 30 June 30
 In millions 1992 1991 1992 1991
 ASSETS
 Loans, net of
 unearned
 income $24,234 $27,941 $24,435 $28,365
 Securities 15,062 11,357 14,722 11,379
 Other earning 919 1,007 1,062 1,306
 Total earning
 assets 40,215 40,305 40,219 41,050
 Other 2,468 2,776 2,486 2,791
 Total assets $42,683 $43,081 $42,705 $43,841
 LIABILITIES
 Deposits
 Interest-
 bearing $23,733 $27,540 $24,258 $27,980
 Noninterest-
 bearing 4,599 4,476 4,543 4,447
 Total deposits 28,332 32,016 28,801 32,427
 Borrowed funds 8,912 6,418 8,518 6,788
 Notes and
 debentures 1,296 1,367 1,303 1,356
 Other 695 563 667 589
 Total
 liabilities 39,235 40,364 39,289 41,160
 SHAREHOLDERS'
 EQUITY 3,448 2,717 3,416 2,681
 Total liabilities
 and shareholders'
 equity $42,683 $43,081 $42,705 $43,841
 COMMON SHAREHOLDERS'
 EQUITY $3,412 $2,678 $3,380 $2,724
 ALLOWANCE FOR CREDIT LOSSES
 Three Months Ended Six Months Ended
 June 30 June 30
 In thousands 1992 1991 1992 1991
 Beginning
 balance $794,922 $801,855 $796,983 $784,533
 Net charge-offs (57,980) (95,593) (150,815) (186,379)
 Provision for
 credit losses 100,186 103,654 190,606 206,762
 Acquisitions 0 0 354 5,000
 Balance at
 June 30 $837,128 $809,916 $837,128 $809,916
 NONPERFORMING ASSETS
 June 30 March 31 Dec. 31 June 30
 In thousands 1992 1992 1991 1991
 NONPERFORMING LOANS
 Commercial
 Manufacturing $79,802 $76,099 $64,096 $89,569
 Communications 53,864 75,374 72,185 89,133
 Services 53,148 70,466 72,278 91,565
 Retail/Wholesale 42,597 47,009 56,316 43,855
 Real estate rel. 34,409 30,388 34,204 70,889
 Financial serv. 23,020 24,696 23,384 1,074
 Equine 20,477 24,676 23,080 9,507
 Transportation 12,995 22,888 24,204 45,066
 Construction 9,032 7,626 16,526 18,940
 Oil and gas 2,979 3,787 4,591 9,242
 Public utilities 0 0 13,600 11,118
 Other 63,667 56,444 61,212 71,750
 Total comml. 395,990 439,453 465,676 551,708
 Real estate
 Projects 225,083 240,927 269,708 294,977
 Commercial mortg. 4,520 5,886 10,420 4,951
 Resident. mortg. 2,327 7,141 5,916 7,800
 Total 231,930 253,954 286,044 307,728
 Foreign 3,505 4,916 9,440 12,447
 Total NPL 631,425 698,323 761,160 871,883
 FORECLOSED ASSETS
 Commercial 39,981 41,085 33,797 34,150
 Real estate
 Projects 236,735 259,706 285,094 299,601
 Commercial mortg. 198 602 969 2,200
 Resident. mortg. 1,033 620 256 380
 Total 237,966 260,928 286,319 302,181
 Foreign 2,300 2,300 2,300 2,300
 Total foreclosed 280,247 304,313 322,416 338,631
 Total NPA $911,672 $1,002,636 $1,083,576 $1,210,514
 NONPERFORMING HLT LOANS
 June 30 March 31 Dec. 31 June 30
 In thousands 1992 1992 1991 1991
 NONPERFORMING LOANS
 Communications $30,898 $48,008 $41,321 $44,270
 Retail/Wholesale 7,773 11,255 5,836 2,802
 Real estate related 6,004 6,104 7,896 9,655
 Manufacturing 5,198 3,551 1,616 21,868
 Transportation 5,186 11,372 11,504 15,291
 Services 2,034 10,344 13,925 20,476
 Total $57,093 $90,634 $82,098 $114,362
 /delval/
 -0- 7/23/92
 /CONTACT: Jonathan Williams, media, 412-762-4550, or at home, 412-257-3257, or William H. Callihan, investors, 412-762-8257/
 (PNC) CO: PNC Financial Corp ST: Pennsylvania IN: FIN SU: ERN


DM -- PG005 -- 2278 07/23/92 08:47 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 23, 1992
Words:2689
Previous Article:SUPERIOR SURGICAL DECLARES QUARTERLY DIVIDEND
Next Article:PNC EARNS $129.8 MILLION IN SECOND QUARTER
Topics:


Related Articles
PNC EARNS $129.8 MILLION IN SECOND QUARTER
FLAGSHIP FINANCIAL REPORTS SECOND QUARTER RESULTS
PNC EARNS $135.1 MILLION IN THIRD QUARTER
PNC EARNS $135.1 MILLION IN THIRD QUARTER
PNC EXPECTS TO REPORT STRONG FOURTH QUARTER EARNINGS; RECOGNIZES ONE-TIME EXPENSE FOR NON-PENSION BENEFITS
PNC BANK EARNS $167.6 MILLION IN THE FIRST QUARTER
PNC BANK CORP. EARNS $169.1 MILLION IN SECOND QUARTER
PNC BANK CORP. REPORTS RECORD EARNINGS IN THIRD QUARTER
PNC BANK CORP. EARNS $205.7 MILLION IN FIRST QUARTER
PNC BANK CORP. EARNS $137.0 MILLION IN SECOND QUARTER

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters