EXHIBIT 12.2
PNC BANK CORP. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
Year ended December 31
Nine months ended -------------------------------------------------------------------
Dollars in thousands September 30, 1995 1994 1993 1992 1991 1990
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EARNINGS
Income before taxes and cumulative
effect of changes in accounting principles.. $ 603,945 $ 902,389 $1,116,612 $ 778,122 $ 548,201 $ 29,425
Fixed charges and preferred stock dividends
excluding interest on deposits.............. 1,072,297 1,045,609 652,432 521,908 518,004 922,156
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Subtotal................................... 1,676,242 1,947,998 1,769,044 1,300,030 1,066,205 951,581
Interest on deposits......................... 941,996 935,876 742,772 1,063,422 1,727,765 1,973,087
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Total...................................... $2,618,238 $2,883,874 $2,511,816 $2,363,452 $2,793,970 $2,924,668
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FIXED CHARGES
Interest on notes and debentures............. $ 425,990 $ 521,979 $ 279,646 $ 160,460 $ 95,103 $ 84,045
Interest on borrowed funds................... 626,580 493,005 348,702 336,827 398,883 816,448
Amortization of notes and debentures......... 535 1,346 967 970 584 538
Interest component of rentals................ 17,509 26,865 20,583 19,167 18,800 17,667
Preferred stock dividend requirements........ 1,683 2,414 2,534 4,484 4,634 3,458
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Subtotal................................... 1,072,297 1,045,609 652,432 521,908 518,004 922,156
Interest on deposits......................... 941,996 935,876 742,772 1,063,422 1,727,765 1,973,087
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Total...................................... $2,014,293 $1,981,485 $1,395,204 $1,585,330 $2,245,769 $2,895,243
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RATIO OF EARNINGS TO COMBINED FIXED
CHARGES AND PREFERRED STOCK DIVIDENDS
Excluding interest on deposits.............. 1.56x 1.86x 2.71x 2.49x 2.06x 1.03x
Including interest on deposits.............. 1.30 1.46 1.80 1.49 1.24 1.01
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MIDLANTIC CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED DIVIDENDS
Year ended December 31
Nine months ended -------------------------------------------------------------------
Dollars in thousands September 30, 1995 1994 1993 1992 1991 1990
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EARNINGS
Income before taxes and
cumulative effect of changes in
accounting principles................ $271,719 $304,005 $ 20,353 $ 9,872 $ (586,779) $ (295,839)
Fixed charges and preferred stock
dividends excluding interest
on deposits.......................... 63,489 66,955 59,907 70,994 105,996 208,025
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Subtotal........................... 335,208 370,960 80,260 80,866 (480,783) (87,814)
Interest on deposits................... 208,858 223,366 262,886 483,154 1,011,800 1,175,719
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Total.............................. $544,066 $594,326 $343,146 $564,020 $ 531,017 $1,087,905
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FIXED CHARGES
Interest on notes and debentures....... $ 25,678 $ 34,453 $ 36,385 $ 41,517 $ 42,220 $ 42,178
Interest on borrowed funds............. 30,671 21,128 11,586 16,806 50,224 152,391
Amortization of notes and debentures... 188 415 451 535 535 534
Interest component of rentals.......... 4,163 5,382 5,908 6,572 7,241 7,146
Preferred stock dividend requirements.. 2,789 5,577 5,577 5,564 5,776 5,776
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Subtotal........................... 63,489 66,955 59,907 70,994 105,996 208,025
Interest on deposits................... 208,858 223,366 262,886 483,154 1,011,800 1,175,719
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Total.............................. $272,347 $290,321 $322,793 $554,148 $1,117,796 $1,383,744
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RATIO OF EARNINGS TO COMBINED FIXED
CHARGES AND PREFERRED STOCK DIVIDENDS
Excluding interest on deposits......... 5.28x 5.54x 1.34x 1.14x (a) (a)
Including interest on deposits......... 2.00 2.05 1.06 1.02 (a) (a)
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(a) Earnings are insufficient to cover fixed charges by $586.8 million and $295.8 million in 1991 and 1990, respectively.
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PNC BANK CORP. AND SUBSIDIARIES
PRO FORMA COMPUTATION OF RATIO OF EARNINGS
TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS
GIVING EFFECT TO MIDLANTIC MERGER
Year ended December 31
Nine months ended -------------------------------------------------------------------
Dollars in thousands September 30, 1995 1994 1993 1992 1991 1990
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EARNINGS
Income before taxes and
cumulative effect of changes in
accounting principles................ $ 875,664 $1,206,394 $1,136,965 $ 787,994 $ (38,578) $ (266,414)
Fixed charges and preferred stock
dividends excluding interest
on deposits.......................... 1,135,786 1,112,564 712,339 592,902 624,000 1,130,181
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Subtotal........................... 2,011,450 2,318,958 1,849,304 1,380,896 585,422 863,767
Interest on deposits................... 1,150,854 1,159,242 1,005,658 1,546,576 2,739,565 3,148,806
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Total.............................. $3,162,304 $3,478,200 $2,854,962 $2,927,472 $3,324,987 $4,012,573
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FIXED CHARGES
Interest on notes and debentures....... $ 451,668 $ 556,432 $ 316,031 $ 201,977 $ 137,323 $ 126,223
Interest on borrowed funds............. 657,251 514,133 360,288 353,633 449,107 968,839
Amortization of notes and debentures... 723 1,761 1,418 1,505 1,119 1,072
Interest component of rentals.......... 21,672 32,247 26,491 25,739 26,041 24,813
Preferred stock dividend requirements.. 4,472 7,991 8,111 10,048 10,410 9,234
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Subtotal........................... 1,135,786 1,112,564 712,339 592,902 624,000 1,130,181
Interest on deposits................... 1,150,854 1,159,242 1,005,658 1,546,576 2,739,565 3,148,806
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Total.............................. $2,286,640 $2,271,806 $1,717,997 $2,139,478 $3,363,565 $4,278,987
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RATIO OF EARNINGS TO COMBINED FIXED
CHARGES AND PREFERRED STOCK DIVIDENDS
Excluding interest on deposits......... 1.77x 2.08x 2.60x 2.33x (a) (a)
Including interest on deposits......... 1.38 1.53 1.66 1.37 (a) (a)
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(a) Earnings are insufficient to cover fixed charges by $38.6 million and $266.4 million in 1991 and 1990, respectively.
The pro forma computation of the ratio of earnings to combined fixed charges and
preferred stock dividends gives effect to the Merger to be accounted for as a
pooling of interests. The financial information in Exhibit 12.2 presents
(i) the historical computation of the ratio of the earnings to fixed charges and
preferred stock dividends of both the Corporation and Midlantic, for the nine
months ended September 30, 1995 and for each of the five years in the period
ended December 31, 1994 and (ii) the computation of the ratio of earnings to
fixed charges and preferred stock dividends, giving effect to the Merger as if
it had occurred at the beginning of the earliest period presented.
The pro forma consolidated financial information is intended for informational
purposes and may not be indicative of the financial position or results that
actually would have occurred had the transaction been consummated on the dates
indicated, or which will be attained in the future. The pro forma consolidated
financial information should be read in conjunction with the 1994 Annual Reports
on Form 10-K and the Quarterly Reports on Form 10-Q for the quarterly period
ended September 30, 1995 of the Corporation and Midlantic.
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