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PNC EARNS $135.1 MILLION IN THIRD QUARTER

 PNC EARNS $135.1 MILLION IN THIRD QUARTER
 PITTSBURGH, Oct. 20 /PRNewswire/ -- PNC Financial Corp


(NYSE: PNC) today reported consolidated net income of $135.1 million, or $1.20 per fully diluted share. Net income increased 26 percent over the third quarter of last year. The percentage increase would have been substantially greater after adjusting for gains on the sale of certain operations reported in the third quarter of last year.
 Consolidated net income for the first nine months of 1992 totaled $392.5 million, or $3.53 per fully diluted share. This compares with $289.2 million and $2.94, respectively, for the corresponding 1991 period.
 Thomas H. O'Brien, chairman and chief executive officer of PNC, stated, "We are satisfied with the consistency and quality of our earnings and are well positioned for 1993. On the basis of this outlook, PNC's board of directors on Oct. 1 approved a 7.5 percent increase in the quarterly cash dividend to 57 cents per share and a two- for-one stock split."
 PNC ended the quarter with $46.6 billion in assets. On an annualized basis, return on average total assets was 1.21 percent for the first nine months and return on average common shareholders' equity was 15.19 percent. These results compare with .85 percent and 13.57 percent, respectively, for the first nine months of 1991.
 Total nonperforming assets, which include nonaccrual loans, restructured loans and foreclosed assets, declined $26.4 million to $885.3 million at Sept. 30, 1992. The lower level of nonperforming assets represents the seventh consecutive quarterly decline and occurred despite the addition of one large commercial credit and the consummation of previously announced bank acquisitions, which together totaled approximately $41 million. The ratio of nonperforming assets to total assets was 1.90 percent at the end of the quarter, compared with 2.01 percent last quarter and 2.41 percent at Dec. 31, 1991. The ratio of nonperforming assets to total loans and foreclosed assets was 3.59 percent at the end of the quarter, compared with 3.67 percent last quarter and 4.21 percent at Dec. 31, 1991. Nonperforming loans totaled $600.1 million at Sept. 30, 1992, compared with $631.4 million last quarter and $761.2 million at Dec. 31, 1991.
 The provision for credit losses in the third quarter totaled $69.9 million and net charge-offs were $52.6 million compared with $100.2 million and $58.0 million, respectively, in the second quarter of 1992, and $148.9 million and $112.8 million in the third quarter a year ago. The allowance for credit losses increased to $870.1 million at Sept. 30, 1992 and represented 145.0 percent of nonperforming loans compared with 132.6 percent at June 30, 1992 and 104.7 percent at year end.
 Shareholders' equity totaled $3.7 billion at Sept. 30, 1992. The leverage capital ratio was 7.99 percent, while Tier I and total risk- based capital ratios are estimated to be 10.8 percent and 12.8 percent, respectively.
 On a taxable-equivalent basis, net interest income for the first nine months increased 11.1 percent to $1.2 billion from 1991. Average earning assets increased $641 million to $41.0 billion in the first nine months of 1992 compared with the corresponding 1991 period. The net interest margin was 4.02 percent, compared with 3.67 percent a year earlier.
 Core fee income, comprised of trust income and service charges, fees and commissions, increased 2.3 percent in the first nine months over 1991 to $462.2 million. Adjusting for the sale of certain operations in the third quarter of 1991, core fee income increased by approximately 11 percent on a comparable basis.
 Noninterest expenses totaled $1.0 billion for the first nine months compared with $958.8 million in the corresponding 1991 period. The primary factors responsible for the increase were accruals relating to consolidation and corporate identity projects, growth in certain fee- based businesses and acquisitions.
 The overhead ratio was 54.2 percent for the first nine months of 1992 and 1991.
 PNC Financial Corp, headquartered in Pittsburgh, was the nation's 13th-largest bank holding company at June 30, 1992, and had assets of $46.6 billion at Sept. 30, 1992. It operates more than 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 Nine Months Ended
 Sept. 30 Sept. 30
 1992 1991 1992 1991
 FINANCIAL PERFORMANCE
 Net interest income
 (taxable-equivalent
 basis) $432,147 $374,438 $1,236,026 $1,112,682
 Net income 135,056 107,261 392,529 289,234
 Earnings per
 common share
 Primary 1.21 1.10 3.55 2.97
 Fully diluted 1.20 1.09 3.53 2.94
 Average common
 shares outstanding
 Primary 111,824 97,466 110,336 96,872
 Fully diluted 113,049 99,020 111,656 98,783
 Net interest
 margin 4.06 pct. 3.84 pct. 4.02 pct. 3.67 pct.
 Return on average
 total assets 1.19 1.02 1.21 .85
 Return on average
 shareholders'
 equity 15.01 15.33 15.11 13.49
 Return on average
 common shareholders'
 equity 15.03 15.42 15.19 13.57
 Average shareholders
 equity to average
 total assets 7.94 6.66 7.98 6.29
 Net charge-offs to
 average loans .87 1.71 1.12 1.45
 Provision for credit
 losses to net
 charge-offs 132.89 132.01 128.07 118.88
 Overhead ratio 56.50 51.04 54.20 54.21
 Sept. 30 June 30 Dec. 31 Sept. 30
 1992 1992 1991 1991
 PERIOD-END RATIOS
 Capital
 Leverage 7.99 pct. 8.09 pct. 7.81 pct. 6.64 pct.
 Common shareholders'
 equity to total
 assets 7.77 7.62 7.31 6.58
 Credit quality
 Nonperforming
 loans to
 total loans 2.46 2.57 2.99 3.40
 Nonperforming assets
 to total loans
 and foreclosed
 assets 3.59 3.67 4.21 4.60
 Nonperforming assets
 to total
 assets 1.90 2.01 2.41 2.79
 Allowance for credit
 losses to
 total loans 3.57 3.41 3.13 3.25
 Allowance for
 credit losses
 to nonperforming
 loans 145.00 132.58 104.71 95.64
 BOOK VALUE PER
 COMMON SHARE $32.50 $31.86 $30.53 $28.81
 PNC FINANCIAL CORP AND SUBSIDIARIES
 Consolidated Statement of Income
 (In thousands, except per share data)
 Three Months Ended Nine Months Ended
 Sept. 30 Sept. 30
 1992 1991 1992 1991
 INTEREST INCOME
 Loans and fees
 on loans $474,946 $616,066 $1,478,171 $1,972,585
 Deposits with
 banks 1,243 4,625 5,732 18,159
 Federal funds sold
 and resale
 agreements 4,370 5,382 13,911 23,122
 Trading account
 securities 817 1,615 5,285 4,869
 Securities
 Taxable 301,257 243,564 848,773 724,247
 Tax-exempt 9,149 10,506 27,692 34,021
 Dividends 756 666 2,213 2,645
 Other 3,903 7,495 15,294 18,382
 Total interest
 income 796,441 889,919 2,397,071 2,798,030
 INTEREST EXPENSE
 Deposits 242,100 416,684 843,009 1,355,272
 Borrowed funds 112,366 86,966 290,247 300,552
 Notes and
 debentures 20,234 25,941 60,688 75,708
 Total interest
 expense 374,700 529,591 1,193,944 1,731,532
 Net interest
 income 421,741 360,328 1,203,127 1,066,498
 Provision for
 credit losses 69,865 148,900 260,471 355,662
 Net interest income
 less provision for
 credit losses 351,876 211,428 942,656 710,836
 NONINTEREST INCOME
 Trust 63,371 58,388 196,457 178,057
 Service charges, fees
 & commissions 91,837 93,211 265,741 273,649
 Trading account
 profits 1,090 3,601 1,138 11,002
 Net equity and other
 security gains
 (losses) 9,206 (4,058) 12,521 (3,299)
 Net debt security
 gains 18,206 26,940 147,254 71,463
 Gain on sale of
 certain
 operations 92,666 92,666
 Other 19,509 6,316 40,709 32,434
 Total noninterest
 income 203,219 277,064 663,820 655,972
 NONINTEREST EXPENSES
 Compensation 140,690 126,399 392,724 374,830
 Employee
 benefits 31,131 26,481 89,006 80,667
 Net occupancy 28,442 27,013 81,174 77,770
 Equipment 27,292 23,125 74,147 70,914
 Federal deposit
 insurance 15,942 17,755 49,064 47,830
 Other 115,454 111,780 343,568 306,768
 Total noninterest
 expenses 358,951 332,553 1,029,683 958,779
 Income before
 income taxes 196,144 155,939 576,793 408,029
 Applicable income
 taxes 61,088 48,678 184,264 118,795
 Net income $135,056 $107,261 $392,529 $289,234
 EARNINGS PER
 COMMON SHARE
 Primary $1.21 $1.10 $3.55 $2.97
 Fully diluted $1.20 $1.09 $3.53 $2.94
 PNC FINANCIAL CORP AND SUBSIDIARIES
 Consolidated Balance Sheet
 (Dollars in thousands, except par values)
 Sept. 30 Dec. 31 Sept. 30
 1992 1991 1991
 ASSETS
 Cash and due from banks $1,475,102 $2,100,983 $2,031,468
 Interest-earning deposits
 with banks 82,201 245,070 300,736
 Federal funds sold
 and resale agreements 84,800 1,328,225 659,294
 Trading account securities 80,645 294,545 60,934
 Investment securities, market
 value of $12,755,415;
 $13,104,351 and
 $12,919,352 12,506,422 12,617,303 12,632,255
 Securities available for sale,
 market value of $7,114,684
 and $1,630,290 6,842,519 1,555,247
 Loans, net of unearned income
 of $615,071; $703,822
 and $712,295 24,373,976 25,443,068 25,344,466
 Allowance for credit losses (870,140) (796,983) (823,586)
 Net loans 23,503,836 24,646,085 24,520,880
 Customers' acceptance
 liability 108,084 81,929 88,647
 Premises, equipment and
 leasehold improvements 497,855 429,726 431,472
 Other 1,451,970 1,592,575 1,558,556
 Total assets $46,633,434 $44,891,688 $42,284,242
 LIABILITIES
 Deposits
 Noninterest-bearing $4,906,938 $5,095,040 $4,896,012
 Interest-bearing demand,
 money market and savings 9,887,217 9,062,506 8,254,282
 Certificates of deposit
 and other time 12,238,381 15,125,845 16,157,391
 In foreign offices 377,906 736,010 466,689
 Total deposits 27,410,442 30,019,401 29,774,374
 Borrowed funds
 Federal funds purchased 2,306,796 1,579,805 1,782,264
 Repurchase agreements 5,180,199 3,883,715 3,516,561
 Commercial paper 590,280 557,909 286,516
 Other 4,747,560 3,464,951 2,342,295
 Total borrowed funds 12,824,835 9,486,380 7,927,636
 Acceptances outstanding 108,084 81,929 88,647
 Notes and debentures 1,374,392 1,287,450 938,519
 Accrued expenses and
 other liabilities 1,258,606 699,736 734,086
 Total liabilities 42,976,359 41,574,896 39,463,262
 SHAREHOLDERS' EQUITY
 Preferred stock--$1 par value
 Authorized: 17,938,149;
 18,057,123 and 18,093,153
 Issued and outstanding:
 1,581,199; 1,689,191
 and 1,723,631 1,581 1,689 1,724
 Aggregate liquidation
 value: $34,962; $37,166
 and $37,895
 Common stock--$5 par value
 Authorized: 250,000,000
 Issued: 111,484,874;
 107,412,004 and
 96,634,386 557,424 537,060 483,172
 Capital surplus 962,287 880,459 493,564
 Retained earnings 2,254,643 2,016,491 1,969,414
 Deferred ESOP
 benefit expense (116,470) (118,900) (126,265)
 Common stock held in treasury
 at cost: 44,260;
 171 and 16,152 (2,390) (7) (629)
 Total shareholders'
 equity 3,657,075 3,316,792 2,820,980
 Total liabilities and
 shareholders' equity $46,633,434 $44,891,688 $42,284,242
 PNC FINANCIAL CORP AND SUBSIDIARIES
 Statistical Information
 AVERAGE BALANCE SHEET
 Three Months Ended Nine Months Ended
 Sept. 30 Sept. 30
 In millions 1992 1991 1992 1991
 ASSETS
 Loans, net of
 unearned
 income $24,158 $26,230 $24,342 $27,646
 Securities 17,533 11,811 15,666 11,525
 Other earning 936 1,037 1,019 1,215
 Total earning
 assets 42,627 39,078 41,027 40,386
 Other 2,460 2,626 2,477 2,735
 Total assets $45,087 $41,704 $43,504 $43,121
 LIABILITIES
 Deposits
 Interest-
 bearing $22,954 $26,355 $23,820 $27,432
 Noninterest-
 bearing 4,799 4,404 4,629 4,433
 Total deposits 27,753 30,759 28,449 31,865
 Borrowed funds 11,713 6,107 9,591 6,559
 Notes and
 debentures 1,381 1,463 1,329 1,392
 Other 661 599 664 592
 Total
 liabilities 41,508 38,928 40,033 40,408
 SHAREHOLDERS'
 EQUITY 3,579 2,776 3,471 2,713
 Total liabilities
 and shareholders'
 equity $45,087 $41,704 $43,504 $43,121
 COMMON SHAREHOLDERS'
 EQUITY $3,544 $2,738 $3,435 $2,674
 ALLOWANCE FOR CREDIT LOSSES
 Three Months Ended Nine Months Ended
 Sept. 30 Sept. 30
 In thousands 1992 1991 1992 1991
 Beginning
 balance $837,128 $809,916 $796,983 $784,533
 Net charge-offs (52,573) (112,796) (203,388) (299,175)
 Provision for
 credit losses 69,865 148,900 260,471 355,662
 Acquisitions/
 divestitures 15,720 (22,434) 16,074 (17,434)
 Balance at
 Sept. 30 $870,140 $823,586 $870,140 $823,586
 NONPERFORMING ASSETS
 Sept. 30 June 30 Dec. 31 Sept. 30
 In thousands 1992 1992 1991 1991
 NONPERFORMING LOANS
 Commercial
 Manufacturing $72,960 $79,802 $64,096 $79,341
 Retail/Wholesale 65,726 42,597 56,316 31,292
 Communications 51,243 53,864 72,185 79,158
 Services 35,530 53,148 72,278 118,780
 Real est. related 32,043 34,409 34,204 54,090
 Financial serv. 22,358 23,020 23,384 1,048
 Equine 12,320 20,477 23,080 10,195
 Construction 6,310 9,032 16,526 19,018
 Transportation 6,198 12,995 24,204 27,282
 Oil and gas 2,448 2,979 4,591 8,729
 Public utilities 13,600 23,691
 Other 66,647 63,667 61,212 83,123
 Total commercial 373,783 395,990 465,676 535,747
 Real estate
 Projects 214,906 225,083 269,708 303,175
 Cml. mortgage 5,013 4,520 10,420 5,278
 Residntl mortgage 3,326 2,327 5,916 7,173
 Total real est. 223,245 231,930 286,044 315,626
 Foreign 3,083 3,505 9,440 9,754
 Total nonperf 600,111 631,425 761,160 861,127
 FORECLOSED ASSETS
 Commercial 33,385 39,981 33,797 32,933
 Real estate
 Projects 246,912 236,735 285,094 283,109
 Cml. mortage 479 198 969 719
 Residntl mortgage 2,108 1,033 256 455
 Total real est. 249,499 237,966 286,319 284,283
 Foreign 2,300 2,300 2,300 2,300
 Total foreclo 285,184 280,247 322,416 319,516
 Total nonperf $885,295 $911,672 $1,083,576 $1,180,643
 NONPERFORMING HLT LOANS
 Sept. 30 June 30 Dec. 31 Sept. 30
 In thousands 1992 1992 1991 1991
 NONPERFORMING LOANS
 Communications $30,898 $30,898 $41,321 $43,182
 Retail/Wholesale 7,678 7,773 5,836 8,307
 Real est. related 5,803 6,004 7,896 7,936
 Manufacturing 3,160 5,198 1,616 10,733
 Transportation 2,557 5,186 11,504 12,535
 Services 2,034 2,034 13,925 19,395
 Total $52,130 $57,093 $82,098 $102,088
 /delval/
 -0- 10/20/92 R
 /CONTACT: Jonathan Williams, media, 412-762-4550, or home at, 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


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