EXHIBIT 11 CALCULATION OF PRIMARY AND FULLY DILUTED EARNINGS PER SHARE PNC BANK CORP. AND SUBSIDIARIES
- -------------------------------------------------------------------------------------------------------------------------------- Year Ended December 31, ------------------------------------------------------------------------ In Thousands, except per share data 1993 1992 1991 1990 1989 - -------------------------------------------------------------------------------------------------------------------------------- PRIMARY AVERAGE COMMON SHARES OUTSTANDING Weighted average shares of common stock outstanding 233,782 221,408 195,372 189,520 186,440 Weighted average common shares to be issued using average market price and assuming: Exercise of stock options 2,556 2,498 1,370 76 658 Exercise of warrants 48 117 130 118 172 - -------------------------------------------------------------------------------------------------------------------------------- Primary weighted average common shares 236,386 224,023 196,872 189,714 187,270 - -------------------------------------------------------------------------------------------------------------------------------- FULLY DILUTED AVERAGE COMMON SHARES OUTSTANDING Weighted average shares of common stock outstanding 233,782 221,408 195,372 189,520 186,440 Weighted average common shares to be issued using average market price or period-end market price, whichever is higher, and assuming: Conversion of preferred stock Series A & B 256 296 328 370 424 Conversion of preferred stock Series C 748 870 944 1,482 Conversion of preferred stock Series D 946 1,186 1,354 2,316 Conversion of debentures 85 206 478 1,402 Exercise of stock options 2,556 3,037 2,696 76 660 Exercise of warrants 48 122 152 118 172 - -------------------------------------------------------------------------------------------------------------------------------- Fully diluted weighted average common shares 238,421 227,125 201,324 190,084 192,896 - -------------------------------------------------------------------------------------------------------------------------------- PRIMARY EARNINGS PER COMMON SHARE Income before cumulative effect of changes in accounting principles $745,263 $529,440 $389,786 $70,912 $377,440 Cumulative effect of changes in accounting principles, net of tax benefit of $5,343 and $52,804 (19,393) (102,501) - -------------------------------------------------------------------------------------------------------------------------------- Net income $725,870 $426,939 $389,786 $70,912 $377,440 Add: ESOP dividends tax benefit 2,680 1,985 2,195 Less: Preferred dividends declared 1,832 3,056 3,295 3,458 4,794 - -------------------------------------------------------------------------------------------------------------------------------- Net income applicable to primary earnings per common share $724,038 $426,563 $388,476 $69,649 $372,646 Primary before cumulative effect of changes in accounting principles $3.14 $2.36 $1.97 $.37 $1.99 Cumulative effect of changes in accounting principles (.08) (.46) - -------------------------------------------------------------------------------------------------------------------------------- Primary earnings per common share $3.06 $1.90 $1.97 $.37 $1.99 - -------------------------------------------------------------------------------------------------------------------------------- FULLY DILUTED EARNINGS PER COMMON SHARE Income before cumulative effect of changes in accounting principles $745,263 $529,440 $389,786 $70,912 $377,440 Cumulative effect of changes in accounting principles, net of tax benefit of $5,343 and $52,804 (19,393) (102,501) - -------------------------------------------------------------------------------------------------------------------------------- Net income $725,870 $426,939 $389,786 $70,912 $377,440 Add: Interest expense on convertible debentures (net of tax) 57 142 368 971 ESOP dividends tax benefit 2,680 1,985 2,195 Less: Dividends declared on non-convertible preferred stock 34 879 879 879 879 Convertible preferred dividends 2,499 - -------------------------------------------------------------------------------------------------------------------------------- Net income applicable to fully diluted earnings per common share $725,893 $428,882 $391,260 $69,729 $377,532 Fully diluted before cumulative effect of changes in accounting principles $3.13 $2.34 $1.94 $.37 $1.96 Cumulative effect of changes in accounting principles (.09) (.45) - -------------------------------------------------------------------------------------------------------------------------------- Fully diluted earnings per common share $3.04 $1.89 $1.94 $.37 $1.96 - --------------------------------------------------------------------------------------------------------------------------------
With respect to the 1990 fully diluted earnings per share calculation, preferred stock series C and D, and the convertible debentures were excluded since the conversion of these securities would have the effect of increasing the earnings per share amount for the year.