Exhibit 99 PNC BANK CORP. EARNINGS INCREASE 33 PERCENT PITTSBURGH, April 17, 1996--PNC Bank Corp. (NYSE: PNC) today reported that 1996 first quarter net income increased 33 percent to $238.3 million, or $.69 per fully diluted share, compared with $179.5 million, or $.52 per fully diluted share, a year ago. Returns on average assets and average common shareholders' equity were 1.34 percent and 16.65 percent, respectively, compared with 0.97 percent and 12.81 percent a year ago. The after-tax profit margin was 25.4 percent compared with 21.5 percent in the first quarter of 1995. Thomas H. O'Brien, chairman and chief executive officer, said, "This quarter's strong results were driven by substantial revenue growth and expense discipline and reflect the benefits of our 1995 balance sheet repositioning and the Midlantic merger. The integration with Midlantic is proceeding very well, and we continue to believe we will exceed our original cost savings estimate." Taxable-equivalent net interest income increased 11.8 percent to $616.1 million and the net interest margin widened to 3.73 percent in the first quarter of 1996. Net interest income and margin were $551.1 million and 3.16 percent, respectively, in the first quarter of 1995. The net interest income and margin reflect the benefits of the balance sheet repositioning completed in 1995 combined with a $5.1 billion increase in average loans. -more- PNC Bank Corp. Earnings Increase 33 Percent Page 2 Noninterest income increased $36.0 million, or 12.6 percent, when compared with the year-earlier period. Investment management and trust income increased 33.8 percent to $120.9 million, reflecting the BlackRock acquisition, new business and an increase in the value of managed assets. Discretionary assets under management totaled $103 billion at March 31, 1996, compared with $85 billion a year ago. Service fees increased 7.2 percent, to $130.3 million, primarily due to higher deposit and brokerage revenue. Mortgage banking revenue was positively impacted by higher than expected mortgage origination volumes, but declined in the comparison due to servicing sales in the prior-year period. At March 31, 1996, the corporation serviced $40.4 billion of mortgages, including $28.1 billion serviced for others. Other noninterest income increased $3.8 million to $31.5 million, primarily due to higher venture capital income. Noninterest expense was 2.2 percent higher when compared with the prior-year quarter. Excluding acquisitions and the benefit of lower Federal deposit insurance premiums, noninterest expense was flat in the comparison. The efficiency ratio improved to 60.3 percent compared with 66.1 percent in the first quarter of 1995. PNC Bank's average total assets and average earning assets were $71.7 billion and $65.7 billion, respectively, during the first quarter of 1996 compared with $74.8 billion and $69.5 billion, respectively, a year ago. The declines reflect the corporation's actions to downsize the securities portfolio, partially offset by loan growth. Average loans were $48.6 billion compared with $43.7 billion in the first quarter of 1995. Excluding acquisitions, average loans increased 6.2 percent in the year-to-year comparison. As a percent of average earning assets, average loans were 74.0 percent during the first quarter of 1996 compared with 62.9 percent a year ago. Average securities declined $9.2 billion to $14.8 billion compared with the prior-year period. Average deposits were $45.6 billion compared with $43.7 billion a year ago. Wholesale funds represented 28.5 percent of total sources of funds in the first quarter of 1996, compared with 35.3 percent in the year-earlier period. The allowance for credit losses totaled $1.2 billion at March 31, 1996 and was 329 percent of nonperforming loans compared with 265 percent at March 31, 1995. Net charge-offs -more- PNC Bank Corp. Earnings Increase 33 Percent Page 3 totaled $34 million in the first quarter of 1996 compared with $36 million in the year-earlier period. Nonperforming assets totaled $540 million at March 31, 1996, compared with $702 million at the end of the first quarter 1995. The ratio of nonperforming assets to total loans and foreclosed assets was 1.10 percent at March 31, 1996 and 1.58 percent at March 31, 1995. Shareholders' equity totaled $5.8 billion at March 31, 1996. The leverage capital ratio was 6.90 percent, and Tier I and total risk-based capital ratios are estimated to be 8.1 percent and 11.6 percent, respectively. PNC Bank Corp., headquartered in Pittsburgh, is one of the largest financial services organizations in the United States, with banking subsidiaries in Pennsylvania, New Jersey, Delaware, Ohio, Kentucky, Indiana, Massachusetts, and Florida. Its major businesses include consumer banking, corporate banking, mortgage banking, real estate banking and asset management. [TABULAR MATERIAL FOLLOWS] PNC BANK CORP. AND SUBSIDIARIES Consolidated Financial Highlights
=============================================================================================================== March 31 December 31 March 31 1996 1995 1995 ............................................................................................................... FINANCIAL PERFORMANCE Three months ended (Dollars in thousands, except per share data) Net interest income (taxable-equivalent basis) $616,108 $563,825 $551,136 Net income (loss) 238,320 (176,177) 179,547 Fully diluted earnings (loss) per common share .69 (.52) .52 Return on average total assets 1.34% (.92)% .97% Return on average common shareholders' equity 16.65 (11.92) 12.81 Net interest margin 3.73 3.22 3.16 After-tax profit margin 25.42 (30.01) 21.46 Efficiency ratio 60.32 140.66 66.14 AVERAGE BALANCES Three months ended (In millions) Assets $71,733 $75,707 $74,841 Earning assets 65,705 69,681 69,486 Loans, net of unearned income 48,625 48,304 43,710 Securities 14,818 19,450 23,984 Deposits 45,553 46,216 43,667 Shareholders' equity 5,764 5,893 5,710 PERIOD END BALANCES (In millions) Assets $72,668 $73,404 $75,750 Earning assets 66,041 66,772 69,369 Loans, net of unearned income 48,800 48,653 44,192 Securities 14,692 15,839 23,487 Deposits 45,621 46,899 43,598 Shareholders' equity 5,786 5,768 5,758 SELECTED RATIOS Capital ratios Book value per common share As reported $16.88 $16.87 $16.90 Excluding net unrealized securities gains/losses 17.16 16.79 17.10 Leverage 6.90% 6.37% 6.88% Common shareholders' equity to assets 7.94 7.83 7.51 Average common shareholders' equity to average assets 8.01 7.76 7.54 Asset quality ratios Net charge-offs to average loans .28 .45 .33 Nonperforming loans to loans .76 .74 1.12 Nonperforming assets to loans and foreclosed assets 1.10 1.10 1.58 Nonperforming assets to total assets .74 .73 .93 Allowance for credit losses to loans 2.51 2.59 2.98 Allowance for credit losses to nonperforming loans 328.88 351.68 265.19 ===============================================================================================================
PNC BANK CORP. AND SUBSIDIARIES Consolidated Statement of Income
===================================================================================================================== Three months ended March 31 December 31 March 31 In thousands, except per share data 1996 1995 1995 ..................................................................................................................... INTEREST INCOME Loans and fees on loans $980,836 $983,267 $887,421 Securities 237,442 283,703 345,404 Other 37,060 33,032 28,452 ..................................................................................................................... Total interest income 1,255,338 1,300,002 1,261,277 INTEREST EXPENSE Deposits 370,983 400,962 357,721 Borrowed funds 112,457 177,403 211,129 Notes and debentures 165,041 168,889 153,147 ..................................................................................................................... Total interest expense 648,481 747,254 721,997 Net interest income 606,857 552,748 539,280 Provision for credit losses 1,500 1,500 ..................................................................................................................... Net interest income less provision for credit losses 606,857 551,248 537,780 NONINTEREST INCOME Investment management and trust 120,877 111,524 90,368 Service fees 130,269 130,803 121,472 Mortgage banking 35,982 39,427 44,723 Net securities gains (losses) 2,943 (288,958) 1,254 Other 31,491 30,490 27,740 ..................................................................................................................... Total noninterest income 321,562 23,286 285,557 NONINTEREST EXPENSES Staff expense 278,657 266,962 263,401 Net occupancy and equipment 93,283 88,063 86,734 Intangible asset and MSR amortization 23,664 41,387 23,335 Federal deposit insurance 3,190 7,662 24,320 Other 166,852 161,827 155,561 Special charges 259,926 ..................................................................................................................... Total noninterest expenses 565,646 825,827 553,351 ..................................................................................................................... Income before income taxes (benefits) 362,773 (251,293) 269,986 Applicable income taxes (benefits) 124,453 (75,116) 90,439 ..................................................................................................................... Net income (loss) $238,320 $(176,177) $179,547 ..................................................................................................................... EARNINGS (LOSSES) PER COMMON SHARE Primary $.69 $(.52) $.52 Fully diluted .69 (.52) .52 CASH DIVIDENDS DECLARED PER COMMON SHARE .35 .35 .35 AVERAGE COMMON SHARES OUTSTANDING Primary 342,872 336,954 341,740 Fully diluted 347,367 336,954 347,008 =====================================================================================================================
PNC BANK CORP. AND SUBSIDIARIES Details of Net Interest Income and Net Interest Margin NET INTEREST INCOME
======================================================================================================================== Three months ended Taxable-equivalent basis March 31 December 31 September 30 June 30 March 31 In thousands 1996 1995 1995 1995 1995 ........................................................................................................................ Interest income/expense before financial derivatives Interest income $1,236,277 $1,318,461 $1,312,720 $1,314,090 $1,278,832 Loan fees 24,457 17,965 23,115 21,354 19,589 Taxable-equivalent adjustment 9,251 11,077 11,790 11,919 11,856 ........................................................................................................................ Total interest income 1,269,985 1,347,503 1,347,625 1,347,363 1,310,277 Interest expense 647,197 739,819 760,001 762,064 717,411 ........................................................................................................................ Net interest income before financial derivatives 622,788 607,684 587,624 585,299 592,866 Effect of financial derivatives on Interest income (5,396) (36,424) (42,326) (40,801) (37,144) Interest expense 1,284 7,435 6,489 9,757 4,586 ........................................................................................................................ Total effect of financial derivatives (6,680) (43,859) (48,815) (50,558) (41,730) ........................................................................................................................ Net interest income $616,108 $563,825 $538,809 $534,741 $551,136 ========================================================================================================================
NET INTEREST MARGIN
======================================================================================================================== Three months ended March 31 December 31 September 30 June 30 March 31 Taxable-equivalent basis 1996 1995 1995 1995 1995 ........................................................................................................................ Book-basis yield on earning assets 7.51 % 7.50 % 7.49 % 7.49 % 7.34 % Effect of loan fees .15 .10 .13 .12 .11 Taxable-equivalent adjustment .06 .06 .07 .07 .07 ........................................................................................................................ Taxable-equivalent yield on earnings assets 7.72 7.66 7.69 7.68 7.52 Rate on interest-bearing liabilities 4.74 4.98 5.11 5.09 4.86 ........................................................................................................................ Interest rate spread 2.98 2.68 2.58 2.59 2.66 Noninterest-bearing sources .79 .79 .79 .77 .74 ........................................................................................................................ Net interest margin before financial derivatives 3.77 3.47 3.37 3.36 3.40 Effect of financial derivatives on Interest income (.03) (.20) (.24) (.23) (.21) Interest expense .01 .05 .04 .07 .03 ........................................................................................................................ Total effect of financial derivatives (.04) (.25) (.28) (.30) (.24) ........................................................................................................................ Net interest margin 3.73 % 3.22 % 3.09 % 3.06 % 3.16 % ========================================================================================================================
PNC BANK CORP. AND SUBSIDIARIES Details of Noninterest Income and Noninterest Expense NONINTEREST INCOME
====================================================================================================================== Three months ended In thousands March 31 December 31 September 30 June 30 March 31 1996 1995 1995 1995 1995 ...................................................................................................................... Investment management and trust Trust $76,891 $69,175 $68,288 $69,826 $58,519 Mutual funds 43,986 42,349 40,829 39,325 31,849 ...................................................................................................................... Total investment management and trust 120,877 111,524 109,117 109,151 90,368 Service fees Deposit 65,518 62,843 60,722 58,326 58,387 Credit card and merchant 8,918 10,888 9,649 11,321 15,331 Corporate finance 13,415 14,592 13,133 13,021 12,384 Brokerage 13,642 11,587 10,113 10,311 9,342 Consumer 13,458 14,821 14,437 11,839 12,326 Insurance 6,772 6,599 6,764 6,062 5,406 Other 8,546 9,473 8,465 8,211 8,296 ...................................................................................................................... Total service fees 130,269 130,803 123,283 119,091 121,472 Mortgage banking Servicing 29,038 28,488 30,215 29,772 31,126 Sale of servicing 350 1,046 10,745 9,672 12,258 Marketing 6,594 9,893 10,649 11,414 1,339 ...................................................................................................................... Total mortgage banking 35,982 39,427 51,609 50,858 44,723 Other 31,491 30,490 54,273 26,184 27,740 ...................................................................................................................... Total noninterest income before securities transactions 318,619 312,244 338,282 305,284 284,303 Net securities gains (losses) 2,943 (288,958) 44 7,966 1,254 ...................................................................................................................... Total $321,562 $23,286 $338,326 $313,250 $285,557 ======================================================================================================================
NONINTEREST EXPENSES ====================================================================================================================== Three months ended In thousands March 31 December 31 September 30 June 30 March 31 1996 1995 1995 1995 1995 ...................................................................................................................... Compensation $228,233 $221,645 $218,934 $213,879 $208,693 Employee benefits 50,424 45,317 50,345 51,536 54,708 ...................................................................................................................... Total staff expense 278,657 266,962 269,279 265,415 263,401 Net occupancy 50,572 42,424 46,542 45,771 45,661 Equipment 42,711 45,639 40,188 38,766 41,073 Intangible assets and MSR amortization 23,664 41,387 26,094 23,855 23,335 Federal deposit insurance 3,190 7,662 1,470 24,217 24,320 Taxes other than income 14,630 13,796 12,856 13,107 13,098 Other 152,222 148,031 151,006 131,532 142,463 ...................................................................................................................... Total noninterest expense before special charges 565,646 565,901 547,435 542,663 553,351 Special charges 259,926 ...................................................................................................................... Total $565,646 $825,827 $547,435 $542,663 $553,351 ======================================================================================================================
PNC BANK CORP. AND SUBSIDIARIES Consolidated Balance Sheet
============================================================================================================== March 31 December 31 March 31 Dollars in millions, except share data 1996 1995 1995 .............................................................................................................. ASSETS Cash and due from banks $3,251 $3,679 $3,490 Short-term investments 1,170 1,611 1,253 Loans held for sale 1,369 659 437 Securities available for sale 14,692 15,839 3,915 Investment securities, fair value of $18,846 19,572 Loans, net of unearned income of $380, $403 and $389 48,800 48,653 44,192 Allowance for credit losses (1,225) (1,259) (1,318) .............................................................................................................. Net loans 47,575 47,394 42,874 Goodwill and other intangibles 1,019 997 742 Mortgage servicing rights 316 268 287 Other 3,276 2,957 3,180 .............................................................................................................. Total assets $72,668 $73,404 $75,750 ============================================================================================================== LIABILITIES Deposits Noninterest-bearing $9,899 $10,707 $9,177 Interest-bearing 35,722 36,192 34,421 .............................................................................................................. Total deposits 45,621 46,899 43,598 Borrowed funds Federal funds purchased 3,434 3,817 2,987 Repurchase agreements 2,754 2,851 7,981 Commercial paper 447 753 825 Other 1,369 1,244 2,996 .............................................................................................................. Total borrowed funds 8,004 8,665 14,789 Notes and debentures 11,448 10,398 9,972 Other 1,809 1,674 1,633 .............................................................................................................. Total liabilities 66,882 67,636 69,992 SHAREHOLDERS' EQUITY Preferred stock 1 1 51 Common stock-$5 par value Authorized: 450,000,000 shares Issued: 341,858,521, 340,863,348 and 344,209,552 shares 1,709 1,704 1,721 Capital surplus 563 545 694 Retained earnings 3,689 3,571 3,620 Deferred benefit expense (77) (79) (83) Net unrealized securities gains (losses) (98) 26 (68) Common stock held in treasury at cost: 15,291 and 7,598,485 shares (1) - (177) .............................................................................................................. Total shareholders' equity 5,786 5,768 5,758 .............................................................................................................. Total liabilities and shareholders' equity $72,668 $73,404 $75,750 ============================================================================================================== COMMON SHAREHOLDERS' EQUITY $5,769 $5,750 $5,690 ==============================================================================================================
PNC BANK CORP. AND SUBSIDIARIES Condensed Consolidated Average Balance Sheet
========================================================================================================================= Three months ended March 31 December 31 September 30 June 30 March 31 In millions 1996 1995 1995 1995 1995 ......................................................................................................................... ASSETS Interest-earning assets Short-term investments $1,102 $950 $815 $1,042 $1,333 Securities available for sale 14,818 9,349 3,222 3,754 4,206 Investment securities 10,101 18,823 19,383 19,778 Loans, net of unearned income Consumer 13,370 13,188 11,822 11,603 11,520 Residential mortgage 11,619 11,462 11,066 10,629 10,060 Commercial 16,806 16,590 15,914 15,620 15,139 Commercial real estate 4,885 5,029 5,096 5,016 5,034 Other 1,945 2,035 1,748 1,897 1,957 ......................................................................................................................... Total loans, net of unearned income 48,625 48,304 45,646 44,765 43,710 Other interest-earning assets 1,160 977 952 551 459 ......................................................................................................................... Total interest-earning assets 65,705 69,681 69,458 69,495 69,486 Other 6,028 6,026 5,808 5,848 5,355 ......................................................................................................................... Total assets $71,733 $75,707 $75,266 $75,343 $74,841 ========================================================================================================================= LIABILITIES Interest-bearing liabilities Deposits $35,872 $36,577 $35,945 $35,407 $34,954 Borrowed funds 7,823 11,511 14,016 14,140 13,902 Notes and debentures 11,068 10,637 8,829 9,586 10,109 ......................................................................................................................... Total interest-bearing liabilities 54,763 58,725 58,790 59,133 58,965 Noninterest-bearing deposits 9,681 9,639 9,132 8,958 8,713 Other 1,525 1,450 1,542 1,525 1,453 ......................................................................................................................... Total liabilities 65,969 69,814 69,464 69,616 69,131 SHAREHOLDERS' EQUITY 5,764 5,893 5,802 5,727 5,710 ......................................................................................................................... Total liabilities and shareholders' equity $71,733 $75,707 $75,266 $75,343 $74,841 ========================================================================================================================= COMMON SHAREHOLDERS' EQUITY $5,747 $5,875 $5,784 $5,660 $5,641 =========================================================================================================================
PNC BANK CORP. AND SUBSIDIARIES Asset Quality Data
LOAN PORTFOLIO ============================================================================================================= March 31 December 31 September 30 June 30 March 31 In millions 1996 1995 1995 1995 1995 ............................................................................................................. Consumer $13,566 $13,539 $11,954 $11,930 $11,641 Residential mortgage 11,620 11,689 11,444 10,999 10,518 Commercial 16,950 16,812 15,789 16,010 15,401 Commercial real estate Commercial mortgage 2,737 2,775 2,799 2,838 2,833 Real estate project 2,137 2,139 2,261 2,233 2,153 Other 2,170 2,102 2,044 1,874 2,035 ............................................................................................................. Total loans 49,180 49,056 46,291 45,884 44,581 Unearned income (380) (403) (390) (393) (389) ............................................................................................................. Loans, net of unearned income $48,800 $48,653 $45,901 $45,491 $44,192 =============================================================================================================
ALLOWANCE FOR CREDIT LOSSES ============================================================================================================= Three months ended March 31 December 31 September 30 June 30 March 31 In millions 1996 1995 1995 1995 1995 ............................................................................................................. Beginning balance $1,259 $1,285 $1,300 $1,318 $1,352 Charge-offs (55) (77) (48) (53) (62) Recoveries 21 22 31 27 26 ............................................................................................................. Net charge-offs (34) (55) (17) (26) (36) Provision for credit losses 1 2 2 1 Acquisitions 28 6 1 ............................................................................................................. Ending balance $1,225 $1,259 $1,285 $1,300 $1,318 =============================================================================================================
NONPERFORMING ASSETS ============================================================================================================= March 31 December 31 September 30 June 30 March 31 In millions 1996 1995 1995 1995 1995 ............................................................................................................. Nonaccrual loans Commercial $141 $118 $126 $148 $193 Commercial real estate Commercial mortgage 116 108 109 113 107 Real estate project 40 45 89 103 81 Consumer 7 10 17 14 16 Residential mortgage 51 54 55 54 54 ............................................................................................................. Total nonaccrual loans 355 335 396 432 451 Restructured loans 17 23 45 45 46 ............................................................................................................. Total nonperforming loans 372 358 441 477 497 Foreclosed assets Commercial real estate 98 105 115 119 122 Residential 26 24 25 26 29 Other 44 49 50 51 54 ............................................................................................................. Total foreclosed assets 168 178 190 196 205 ............................................................................................................. Total nonperforming assets $540 $536 $631 $673 $702 =============================================================================================================