Exhibit 99.1 CONTACTS: MEDIA: Jonathan Williams (412) 762-4550 pubrela@pncmail.com INVESTORS: William H. Callihan (412) 762-8257 invrela@pncmail.com PNC BANK CORP. REPORTS STRONG FOURTH QUARTER, LEADING TO RECORD EARNINGS FOR 1997 PITTSBURGH, Jan. 15, 1998 - PNC Bank Corp. (NYSE: PNC) today reported strong fourth quarter 1997 earnings of $265 million or $0.85 per diluted share and record full year earnings of $1.052 billion or $3.28 per diluted share. Comparable 1996 results were $272 million or $0.79 per diluted share for the fourth quarter and $992 million or $2.88 per diluted share for the year. Return on average common shareholders' equity was 20.28% for the fourth quarter and 20.01% for the year compared with 18.58% and 17.18%, respectively for the prior year. Return on average assets was 1.49% for both the last quarter and full year compared with 1.56% and 1.40% for the respective 1996 periods. "Our record performance reflects solid revenue growth," said Thomas H. O'Brien, chairman and chief executive officer. "Our aggressive investments over the past several years in fee-based businesses such as Asset Management, Treasury Management, Capital Markets and Mutual Fund Servicing have generated significant contributions to our performance. Noninterest revenues represented more than 44% of total revenues in the fourth quarter and we expect that relative contribution to increase to over 50% by 2000." PNC Bank Corp. Reports Strong Fourth Quarter, Leading To Record Earnings For 1997 -- Page 2 HIGHLIGHTS o Revenue increased 12% in the year-to-year comparison. o Noninterest income grew $413 million led by fee-based revenue growth of 21%. o The relationship of noninterest income to total revenue was 42% for 1997 and increased to 44% for the fourth quarter. o The net interest margin widened 11 basis points to 3.94% during 1997. o Significant investments were made in national consumer businesses, including the AAA initiative which is expected to become profitable in the fourth quarter of 1998. o Asset quality improved significantly. Nonperforming assets declined 15% from the third quarter and 27% since last year and finished the year at 0.61% of loans and foreclosed assets. Net charge-offs for 1997 were 0.51% of average loans. o Continued aggressive reduction in the securities portfolio and related wholesale funding while maintaining a balance sheet that is essentially neutral to changes in interest rates. o Capital management activities for 1997 included reducing the securities portfolio to $8.5 billion or 12.8% of earning assets and repurchasing 29.3 million common shares or 9.0% of shares outstanding. INCOME STATEMENT REVIEW Taxable-equivalent net interest income was $2.524 billion for 1997, a $46 million increase over 1996. The net interest margin widened to 3.94% compared with 3.83% in the prior year primarily resulting from a higher-yielding earning asset mix. The provision for credit losses was $70 million for 1997. No provision was recorded in the prior year. -more- PNC Bank Corp. Reports Strong Fourth Quarter, Leading To Record Earnings For 1997 -- Page 3 Noninterest income totaled $1.808 billion in 1997 and represented 42% of total revenue compared with $1.395 billion and 36%, respectively, in 1996. Growth in investment advisory, private banking and mutual fund servicing contributed to a $106 million or 21% increase in asset management fees. Managed assets increased to approximately $137 billion at Dec. 31, 1997 compared with $109 billion a year ago. Service fees increased $146 million or 26% primarily from growth in credit card, corporate finance, insurance, deposit, treasury management and consumer services. Mortgage banking revenue grew primarily due to higher income from securitization activities. Mortgage originations totaled $6.1 billion in 1997 compared with $5.6 billion a year ago. At Dec. 31, 1997, the corporation serviced approximately $40.7 billion of mortgages, including $31.7 billion serviced for others. Other noninterest income increased $132 million in the comparison primarily due to higher venture capital and asset securitization income. Noninterest expense increased $303 million to $2.615 billion in 1997 largely due to $187 million of incremental costs associated with AAA and credit card-related initiatives. The remaining increase was attributable to higher incentive compensation commensurate with growth in fee-based revenue and the cost of trust preferred capital securities. The efficiency ratio was 59.4% for 1997 compared with 59.6% a year ago. BALANCE SHEET REVIEW Total assets were $75.1 billion at Dec. 31, 1997. Average earning assets declined $708 million during the year to $64.0 billion as loan growth was more than offset by securities portfolio reductions. Average loans grew 7.7% to $52.9 billion, a $3.8 billion increase from the prior year. Loans represented 82.6% of average earning assets compared with 75.9% a year ago. Growth in credit cards, residential mortgages and middle market commercial loans more than offset downsizing of the indirect automobile lending portfolio and the impact of loan securitizations. Since 1994, the corporation has aggressively downsized the securities portfolio and related wholesale funding. As a result, average securities have been reduced to $8.8 billion or 13.7% of average earning assets. -more- PNC Bank Corp. Reports Strong Fourth Quarter, Leading To Record Earnings For 1997 -- Page 4 Average interest-bearing funding was substantially unchanged at $53.5 billion in 1997. Deposits represented 63.0% of total sources of funds for 1997 compared with 63.7% a year ago. Shareholders' equity totaled $5.4 billion at Dec. 31, 1997. The leverage ratio was 7.3% and Tier I and total risk-based capital ratios are estimated to be 7.4% and 11.0%, respectively. During 1997, the corporation repurchased 29.3 million common shares. During the fourth quarter, the board of directors approved a 5.4% increase in the quarterly common dividend to $0.39 per share. The ratio of nonperforming assets to total loans and foreclosed assets declined to 0.61% at Dec. 31, 1997, compared with 0.73% at Sept. 30, 1997, and 0.88% a year ago. Nonperforming assets declined to $333 million at Dec. 31, 1997, compared with $394 million at Sept. 30, 1997, and $459 million at Dec. 31, 1996. The allowance for credit losses was $972 million at Dec. 31, 1997, and represented 352% of nonperforming loans compared with 334% a year ago. Net charge-offs were $272 million or 0.51% of average loans in 1997 compared with $164 million and 0.33%, respectively, a year ago. The increase was primarily associated with higher credit card outstandings. PNC Bank Corp., headquartered in Pittsburgh, is one of the largest diversified financial services organizations in the United States. Its major businesses include consumer banking, corporate banking, private banking, mortgage banking, secured lending and asset management. Visit PNC Bank on the World Wide Web at http://www.pncbank.com Our SEC reports, accessible on our website, identify factors that can affect forward looking statements. [TABULAR MATERIAL FOLLOWS] PNC BANK CORP. AND SUBSIDIARIES Page 5 Consolidated Financial Highlights
Three months ended December 31 Year ended December 31 1997 1996 1997 1996 - ------------------------------------------------------------------------------------------------------------------------------------ FINANCIAL PERFORMANCE (in thousands, except per share data) Revenue Net interest income (taxable-equivalent basis) $638,912 $625,637 $2,524,207 $2,478,609 Noninterest income 503,993 388,579 1,808,166 1,395,100 Total revenue 1,142,905 1,014,216 4,332,373 3,873,709 Net income 265,489 271,903 1,052,468 992,226 Per common share Diluted earnings .85 .79 3.28 2.88 Cash dividends declared .39 .37 1.50 1.42 SELECTED RATIOS Return on Average common shareholders' equity 20.28% 18.58% 20.01% 17.18% Average assets 1.49 1.56 1.49 1.40 Net interest margin 3.95 3.92 3.94 3.83 After-tax profit margin 23.23 26.81 24.29 25.61 Efficiency ratio (excluding distributions on capital securities) 60.20 57.69 59.36 59.64 Net charge-offs to average loans .59 .45 .51 .33
December 31 September 30 June 30 March 31 December 31 1997 1997 1997 1997 1996 - ------------------------------------------------------------------------------------------------------------------------------------ BALANCE SHEET DATA (in millions) Assets $75,120 $71,828 $71,973 $71,166 $73,260 Earning assets 66,688 64,208 64,297 64,255 65,439 Loans, net of unearned income 54,245 53,651 53,497 52,575 51,798 Securities 8,522 8,000 8,396 9,593 11,917 Deposits 47,649 44,788 45,216 44,902 45,676 Borrowed funds 19,622 19,052 19,066 18,547 19,604 Shareholders' equity 5,384 5,476 5,384 5,478 5,869 Common shareholders' equity 5,069 5,161 5,068 5,162 5,553 CAPITAL RATIOS Leverage 7.27% 7.46% 7.35% 7.17% 7.70% Common shareholders' equity to assets 6.75 7.18 7.04 7.25 7.58 ASSET QUALITY RATIOS Nonperforming assets to loans and foreclosed assets .61 .73 .83 .82 .88 Allowance for credit losses to loans 1.79 1.91 2.01 2.13 2.25 Allowance for credit losses to nonperforming loans 351.79 324.25 310.34 346.11 334.40 Book value per common share $16.87 $16.92 $16.51 $16.45 $17.13 - ------------------------------------------------------------------------------------------------------------------------------------
-more- PNC BANK CORP. AND SUBSIDIARIES Page 6 Consolidated Statement of Income
Three months ended December 31 Year ended December 31 -------------------------- -------------------------- In thousands, except per share data 1997 1996 1997 1996 - ------------------------------------------------------------------------------------------------------------------------------- INTEREST INCOME Loans and fees on loans $1,117,551 $1,011,871 $4,353,744 $3,943,586 Securities 119,366 181,264 539,953 858,686 Other 44,426 30,490 157,306 136,463 ---------------------------------------------------- Total interest income 1,281,343 1,223,625 5,051,003 4,938,735 INTEREST EXPENSE Deposits 369,572 354,985 1,456,587 1,428,771 Borrowed funds 279,570 250,906 1,099,198 1,065,663 ---------------------------------------------------- Total interest expense 649,142 605,891 2,555,785 2,494,434 ---------------------------------------------------- Net interest income 632,201 617,734 2,495,218 2,444,301 Provision for credit losses 25,000 70,000 ---------------------------------------------------- Net interest income less provision for credit losses 607,201 617,734 2,425,218 2,444,301 NONINTEREST INCOME Asset management 166,409 129,048 602,804 496,739 Service fees 192,788 158,045 712,452 566,358 Mortgage banking 45,741 47,532 156,486 153,672 Other 77,621 46,399 287,851 156,207 ---------------------------------------------------- Total noninterest income before net securities gains 482,559 381,024 1,759,593 1,372,976 Net securities gains 21,434 7,555 48,573 22,124 ---------------------------------------------------- Total noninterest income 503,993 388,579 1,808,166 1,395,100 NONINTEREST EXPENSE Staff expense 312,339 269,233 1,208,175 1,109,932 Net occupancy and equipment 97,611 92,955 369,380 368,649 Amortization 56,104 36,701 173,921 117,439 Other 222,014 186,210 820,171 714,439 Distributions on capital securities 13,123 1,391 43,138 1,391 ---------------------------------------------------- Total noninterest expense 701,191 586,490 2,614,785 2,311,850 Income before income taxes 410,003 419,823 1,618,599 1,527,551 Applicable income taxes 144,514 147,920 566,131 535,325 ---------------------------------------------------- Net income $265,489 $271,903 $1,052,468 $992,226 - ------------------------------------------------------------------------------------------------------------------------------- Net income applicable to common shareholders $261,675 $268,662 $1,037,324 $991,558 EARNINGS PER COMMON SHARE Basic $.86 $.80 $3.33 $2.91 Diluted .85 .79 3.28 2.88 CASH DIVIDENDS DECLARED PER COMMON SHARE .39 .37 1.50 1.42 AVERAGE COMMON SHARES OUTSTANDING Basic 303,207 332,266 310,147 338,568 Diluted 309,533 338,678 316,221 344,576 - -------------------------------------------------------------------------------------------------------------------------------
-more- PNC BANK CORP. AND SUBSIDIARIES Page 7 Details of Net Interest Income
Three months ended NET INTEREST INCOME December 31 Year ended December 31 Taxable-equivalent basis ------------------------------------------------------- In thousands 1997 1996 1997 1996 - ------------------------------------------------------------------------------------------------------------------------------------ Interest income Loans $1,123,127 $1,017,982 $4,376,444 $3,969,159 Securities 120,395 183,013 545,936 867,209 Other interest-earning assets 44,532 30,533 157,612 136,675 --------------------------------------------------------- Total interest income 1,288,054 1,231,528 5,079,992 4,973,043 Interest expense Deposits 369,572 354,985 1,456,587 1,428,771 Borrowed funds 279,570 250,906 1,099,198 1,065,663 --------------------------------------------------------- Total interest expense 649,142 605,891 2,555,785 2,494,434 --------------------------------------------------------- Net interest income $638,912 $625,637 $2,524,207 $2,478,609 - ------------------------------------------------------------------------------------------------------------------------------------
Taxable-equivalent basis December 31 September 30 June 30 March 31 December 31 Three months ended - in thousands 1997 1997 1997 1997 1996 - ------------------------------------------------------------------------------------------------------------------------------------ Interest income Loans $1,123,127 $1,107,250 $1,084,532 $1,061,535 $1,017,982 Securities 120,395 127,053 140,618 157,870 183,013 Other interest-earning assets 44,532 43,555 39,416 30,109 30,533 --------------------------------------------------------------------- Total interest income 1,288,054 1,277,858 1,264,566 1,249,514 1,231,528 Interest expense Deposits 369,572 372,860 368,000 346,155 354,985 Borrowed funds 279,570 277,567 275,985 266,076 250,906 --------------------------------------------------------------------- Total interest expense 649,142 650,427 643,985 612,231 605,891 --------------------------------------------------------------------- Net interest income $638,912 $627,431 $620,581 $637,283 $625,637 - ------------------------------------------------------------------------------------------------------------------------------------
-more- PNC BANK CORP. AND SUBSIDIARIES Page 8 Details of Net Interest Margin
Three months ended December 31 Year ended December 31 NET INTEREST MARGIN ----------------------------------------------------- Taxable-equivalent basis 1997 1996 1997 1996 - ------------------------------------------------------------------------------------------------------------------------------- Rates earned/paid Yield on earning assets Loans 8.27% 8.07% 8.27% 8.08% Securities 6.19 6.32 6.22 6.40 Other interest-earning assets 6.68 6.84 6.75 6.64 ---------------------------------------------------- Total yield on earning assets 7.96 7.71 7.93 7.68 Rate on interest-bearing liabilities Deposits 4.23 4.05 4.18 4.06 Borrowed funds 5.91 5.79 5.91 5.82 ---------------------------------------------------- Total rate on interest-bearing liabilities 4.82 4.62 4.78 4.66 ---------------------------------------------------- Interest rate spread 3.14 3.09 3.15 3.02 Impact of noninterest-bearing sources .81 .83 .79 .81 ---------------------------------------------------- Net interest margin 3.95% 3.92% 3.94% 3.83% - -------------------------------------------------------------------------------------------------------------------------------
Taxable-equivalent basis December 31 September 30 June 30 March 31 December 31 Three months ended 1997 1997 1997 1997 1996 - -------------------------------------------------------------------------------------------------------------------------------- Rates earned/paid Yield on earning assets Loans 8.27% 8.23% 8.19% 8.20% 8.07% Securities 6.19 6.17 6.21 6.27 6.32 Other interest-earning assets 6.68 6.83 6.76 6.68 6.84 ---------------------------------------------------------------- Total yield on earning assets 7.96 7.92 7.85 7.86 7.71 Rate on interest-bearing liabilities Deposits 4.23 4.23 4.18 4.06 4.05 Borrowed funds 5.91 5.92 5.88 5.76 5.79 ---------------------------------------------------------------- Total rate on interest-bearing liabilities 4.82 4.82 4.77 4.66 4.62 ---------------------------------------------------------------- Interest rate spread 3.14 3.10 3.08 3.20 3.09 Impact of noninterest-bearing sources .81 .79 .76 .78 .83 ---------------------------------------------------------------- Net interest margin 3.95% 3.89% 3.84% 3.98% 3.92% - -------------------------------------------------------------------------------------------------------------------------------
-more- PNC BANK CORP. AND SUBSIDIARIES Page 9 Details of Noninterest Income
Three months ended December 31 Year ended December 31 NONINTEREST INCOME ----------------------------------------------------- In thousands 1997 1996 1997 1996 - ------------------------------------------------------------------------------------------------------------------------------- Asset management Asset management and trust $128,916 $97,588 $461,512 $377,854 Mutual fund servicing 37,493 31,460 141,292 118,885 ---------------------------------------------------- Total asset management 166,409 129,048 602,804 496,739 Service fees Deposit 78,408 77,571 317,489 289,596 Credit card and merchant services 28,802 14,903 93,158 29,759 Corporate finance and capital markets 27,194 16,449 83,356 65,615 Consumer 19,965 19,246 74,783 63,676 Brokerage 14,230 12,392 54,341 53,810 Insurance 10,543 8,706 39,769 30,062 Other 13,646 8,778 49,556 33,840 ---------------------------------------------------- Total service fees 192,788 158,045 712,452 566,358 Mortgage banking Servicing 30,503 30,064 116,231 118,906 Marketing 14,775 8,022 37,440 23,638 Sale of servicing 463 9,446 2,815 11,128 ---------------------------------------------------- Total mortgage banking 45,741 47,532 156,486 153,672 Other 77,621 46,399 287,851 156,207 ---------------------------------------------------- Total noninterest income before net securities gains 482,559 381,024 1,759,593 1,372,976 Net securities gains 21,434 7,555 48,573 22,124 ---------------------------------------------------- Total $503,993 $388,579 $1,808,166 $1,395,100 - -------------------------------------------------------------------------------------------------------------------------------
December 31 September 30 June 30 March 31 December 31 Three months ended - in thousands 1997 1997 1997 1997 1996 - ------------------------------------------------------------------------------------------------------------------------------- Asset management Asset management and trust $128,916 $115,197 $110,500 $106,899 $97,588 Mutual fund servicing 37,493 35,608 35,518 32,673 31,460 ----------------------------------------------------------------- Total asset management 166,409 150,805 146,018 139,572 129,048 Service fees Deposit 78,408 78,406 79,817 80,858 77,571 Credit card and merchant services 28,802 23,292 21,960 19,104 14,903 Corporate finance and capital markets 27,194 18,480 21,090 16,592 16,449 Consumer 19,965 19,533 17,988 17,297 19,246 Brokerage 14,230 14,138 12,731 13,242 12,392 Insurance 10,543 10,421 9,659 9,146 8,706 Other 13,646 10,876 13,852 11,182 8,778 ----------------------------------------------------------------- Total service fees 192,788 175,146 177,097 167,421 158,045 Mortgage banking Servicing 30,503 30,316 27,963 27,449 30,064 Marketing 14,775 15,552 3,692 3,421 8,022 Sale of servicing 463 683 494 1,175 9,446 ----------------------------------------------------------------- Total mortgage banking 45,741 46,551 32,149 32,045 47,532 Other 77,621 75,805 64,773 69,652 46,399 ----------------------------------------------------------------- Total noninterest income before net securities gains (losses) 482,559 448,307 420,037 408,690 381,024 Net securities gains (losses) 21,434 (2,657) 13,370 16,426 7,555 ----------------------------------------------------------------- Total $503,993 $445,650 $433,407 $425,116 $388,579 - -------------------------------------------------------------------------------------------------------------------------------
-more- PNC BANK CORP. AND SUBSIDIARIES Page 10 Details of Noninterest Expense
Three months ended December 31 Year ended December 31 NONINTEREST EXPENSE ----------------------------------------------------- In thousands 1997 1996 1997 1996 - ------------------------------------------------------------------------------------------------------------------------------- Staff expense Compensation $276,768 $234,690 $1,015,898 $929,626 Employee benefits 35,571 34,543 192,277 180,306 ---------------------------------------------------- Total staff expense 312,339 269,233 1,208,175 1,109,932 Net occupancy 49,813 49,681 189,345 196,975 Equipment 47,798 43,274 180,035 171,674 Goodwill amortization 13,143 15,118 52,795 54,300 Other amortization 42,961 21,583 121,126 63,139 Taxes other than income 13,730 12,360 56,476 53,353 Distributions on capital securities 13,123 1,391 43,138 1,391 Other 208,284 173,850 763,695 661,086 ---------------------------------------------------- Total $701,191 $586,490 $2,614,785 $2,311,850 - -------------------------------------------------------------------------------------------------------------------------------
December 31 September 30 June 30 March 31 December 31 Three months ended - in thousands 1997 1997 1997 1997 1996 - ------------------------------------------------------------------------------------------------------------------------------- Staff expense Compensation $276,768 $250,833 $243,602 $244,695 $234,690 Employee benefits 35,571 48,141 50,559 58,006 34,543 ----------------------------------------------------------------- Total staff expense 312,339 298,974 294,161 302,701 269,233 Net occupancy 49,813 46,221 46,071 47,240 49,681 Equipment 47,798 44,483 45,710 42,044 43,274 Goodwill amortization 13,143 13,110 13,274 13,268 15,118 Other amortization 42,961 35,349 26,253 16,563 21,583 Taxes other than income 13,730 13,879 13,832 15,035 12,360 Distributions on capital securities 13,123 13,192 9,867 6,956 1,391 Other 208,284 173,350 189,664 192,397 173,850 ----------------------------------------------------------------- Total $701,191 $638,558 $638,832 $636,204 $586,490 - -------------------------------------------------------------------------------------------------------------------------------
-more- PNC BANK CORP. AND SUBSIDIARIES Page 11 Consolidated Balance Sheet
December 31 December 31 In millions 1997 1996 - ------------------------------------------------------------------------------------------------------------------------------- ASSETS Cash and due from banks $4,303 $4,016 Short-term investments 1,526 774 Loans held for sale 2,324 941 Securities available for sale 8,522 11,917 Loans, net of unearned income of $412 and $385 54,245 51,798 Allowance for credit losses (972) (1,166) ------------------------- Net loans 53,273 50,632 Other 5,172 4,980 ------------------------- Total assets $75,120 $73,260 ------------------------- LIABILITIES Deposits Noninterest-bearing $10,158 $10,937 Interest-bearing 37,491 34,739 ------------------------- Total deposits 47,649 45,676 Borrowed funds Bank notes and senior debt 9,826 8,093 Federal funds purchased 3,632 3,933 Repurchase agreements 714 645 Other borrowed funds 3,753 5,576 Subordinated debt 1,697 1,357 ------------------------- Total borrowed funds 19,622 19,604 Other 1,815 1,761 ------------------------- Total liabilities 69,086 67,041 Mandatorily redeemable capital securities of subsidiary trusts 650 350 SHAREHOLDERS' EQUITY Preferred stock 7 7 Common stock - $5 par value Authorized $450,000,000 shares Issued 348,447,600 and 345,154,238 shares 1,742 1,726 Capital surplus 1,042 939 Retained earnings 4,641 4,075 Deferred benefit expense (41) (60) Net unrealized securities losses (23) (67) Common stock held in treasury at cost: 48,017,641 and 21,036,195 shares (1,984) (751) ------------------------- Total shareholders' equity 5,384 5,869 ------------------------- Total liabilities, capital securities and shareholders' equity $75,120 $73,260 - -------------------------------------------------------------------------------------------------------------------------------
-more- PNC BANK CORP. AND SUBSIDIARIES Page 12 Consolidated Average Balance Sheet Data
Three months ended December 31 Year ended December 31 ----------------------------------------------------- In millions 1997 1996 1997 1996 - ------------------------------------------------------------------------------------------------------------------------------- ASSETS Interest-earning assets Securities $7,769 $11,569 $8,774 $13,550 Loans, net of unearned income Consumer Credit card 3,803 1,683 3,558 1,165 Other consumer 11,108 12,084 11,224 12,192 ---------------------------------------------------- Total consumer 14,911 13,767 14,782 13,357 Residential mortgage 12,966 12,361 13,105 12,049 Commercial 19,838 18,122 19,089 17,727 Commercial real estate 4,067 4,092 4,060 4,186 Other 1,881 1,631 1,871 1,797 ---------------------------------------------------- Total loans, net of unearned income 53,663 49,973 52,907 49,116 Other interest-earning assets 2,655 1,780 2,336 2,059 ---------------------------------------------------- Total interest-earning assets 64,087 63,322 64,017 64,725 Noninterest-earning assets 6,782 6,214 6,627 6,082 ---------------------------------------------------- Total assets $70,869 $69,536 $70,644 $70,807 ---------------------------------------------------- LIABILITIES Interest-bearing liabilities Deposits $34,655 $34,829 $34,864 $35,217 Borrowed funds 18,624 17,110 18,594 18,314 ---------------------------------------------------- Total interest-bearing liabilities 53,279 51,939 53,458 53,531 Noninterest-bearing deposits 9,925 10,003 9,670 9,900 Other 1,601 1,501 1,501 1,529 ---------------------------------------------------- Total liabilities 64,805 63,443 64,629 64,960 Mandatorily redeemable capital securities of subsidiary trusts 650 76 537 19 SHAREHOLDERS' EQUITY 5,414 6,017 5,478 5,828 ---------------------------------------------------- Total liabilities, capital securities and shareholders' equity $70,869 $69,536 $70,644 $70,807 ---------------------------------------------------- COMMON SHAREHOLDERS' EQUITY $5,099 $5,727 $5,162 $5,742 - -------------------------------------------------------------------------------------------------------------------------------
-more- PNC BANK CORP. AND SUBSIDIARIES Page 13 Consolidated Balance Sheet Data
AVERAGE BALANCES December 31 September 30 June 30 March 31 December 31 Three months ended - in millions 1997 1997 1997 1997 1996 - -------------------------------------------------------------------------------------------------------------------------------- ASSETS Interest-earning assets Securities $7,769 $8,216 $9,055 $10,089 $11,569 Loans, net of unearned income Consumer Credit card 3,803 3,871 3,502 3,043 1,683 Other consumer 11,108 10,996 11,239 11,827 12,084 ----------------------------------------------------------------- Total consumer 14,911 14,867 14,741 14,870 13,767 Residential mortgage 12,966 13,503 13,164 12,781 12,361 Commercial 19,838 18,858 18,986 18,429 18,122 Commercial real estate 4,067 4,022 4,038 4,078 4,092 Other 1,881 1,952 1,884 1,764 1,631 ----------------------------------------------------------------- Total loans, net of unearned income 53,663 53,202 52,813 51,922 49,973 Other interest-earning assets 2,655 2,536 2,333 1,814 1,780 ----------------------------------------------------------------- Total interest-earning assets 64,087 63,954 64,201 63,825 63,322 Noninterest-earning assets 6,782 6,627 6,620 6,476 6,214 ----------------------------------------------------------------- Total assets $70,869 $70,581 $70,821 $70,301 $69,536 ----------------------------------------------------------------- LIABILITIES Interest-bearing liabilities Deposits $34,655 $34,952 $35,313 $34,533 $34,829 Borrowed funds 18,624 18,484 18,675 18,594 17,110 ----------------------------------------------------------------- Total interest-bearing liabilities 53,279 53,436 53,988 53,127 51,939 Noninterest-bearing deposits 9,925 9,654 9,501 9,600 10,003 Other 1,601 1,460 1,480 1,466 1,501 ----------------------------------------------------------------- Total liabilities 64,805 64,550 64,969 64,193 63,443 Mandatorily redeemable capital securities of subsidiary trusts 650 650 492 350 76 SHAREHOLDERS' EQUITY 5,414 5,381 5,360 5,758 6,017 ----------------------------------------------------------------- Total liabilities, capital securities and shareholders' equity $70,869 $70,581 $70,821 $70,301 $69,536 ----------------------------------------------------------------- COMMON SHAREHOLDERS' EQUITY $5,099 $5,066 $5,044 $5,442 $5,727 - --------------------------------------------------------------------------------------------------------------------------------
LOAN PORTFOLIO December 31 September 30 June 30 March 31 December 31 Period ended - in millions 1997 1997 1997 1997 1996 - -------------------------------------------------------------------------------------------------------------------------------- Consumer Credit card $3,830 $3,861 $3,693 $3,345 $2,776 Other consumer 11,205 11,206 10,983 11,356 12,092 Residential mortgage 12,785 13,064 13,494 13,056 12,703 Commercial 19,989 19,536 19,266 19,020 18,588 Commercial real estate Commercial mortgage 1,848 1,926 1,880 1,894 1,941 Real estate project 2,126 2,159 2,123 2,137 2,157 Other 2,874 2,281 2,450 2,154 1,926 ----------------------------------------------------------------- Total loans 54,657 54,033 53,889 52,962 52,183 Unearned income (412) (382) (392) (387) (385) ----------------------------------------------------------------- Loans, net of unearned income $54,245 $53,651 $53,497 $52,575 $51,798 - --------------------------------------------------------------------------------------------------------------------------------
-more- PNC BANK CORP. AND SUBSIDIARIES Page 14 Asset Quality Data
LOAN PORTFOLIO December 31 September 30 June 30 March 31 December 31 Three months ended - in millions 1997 1997 1997 1997 1996 - ------------------------------------------------------------------------------------------------------------------------------- Beginning balance $1,027 $1,075 $1,119 $1,166 $1,152 Charge-offs Consumer Credit card (54) (53) (55) (46) (23) Other consumer (27) (25) (25) (30) (28) ---------------------------------------------------------------- Total consumer (81) (78) (80) (76) (51) Residential mortgage (1) (3) (3) (2) (2) Commercial (18) (11) (10) (10) (17) Commercial real estate (5) (3) (3) (1) (9) ---------------------------------------------------------------- Total charge-offs (105) (95) (96) (89) (79) Recoveries Consumer Credit card 5 4 9 7 2 Other consumer 10 9 9 9 9 ---------------------------------------------------------------- Total consumer 15 13 18 16 11 Residential mortgage 1 1 Commercial 4 7 18 9 7 Commercial real estate 6 2 1 3 3 ---------------------------------------------------------------- Total recoveries 25 22 37 29 22 ---------------------------------------------------------------- Net charge-offs (80) (73) (59) (60) (57) Provision for credit losses 25 20 15 10 Acquisitions 5 3 71 ---------------------------------------------------------------- Ending balance $972 $1,027 $1,075 $1,119 $1,166 - -------------------------------------------------------------------------------------------------------------------------------
NONPERFORMING ASSETS December 31 September 30 June 30 March 31 December 31 Period ended - in millions 1997 1997 1997 1997 1996 - ------------------------------------------------------------------------------------------------------------------------------- Nonaccrual loans Commercial $128 $142 $155 $135 $156 Commercial real estate Commercial mortgage 84 94 106 113 109 Real estate project 10 28 33 24 25 Consumer 10 6 5 5 6 Residential mortgage 44 45 46 45 51 ---------------------------------------------------------------- Total nonaccrual loans 276 315 345 322 347 Restructured loans 2 1 1 2 ---------------------------------------------------------------- Total nonperforming loans 276 317 346 323 349 Foreclosed assets Commercial real estate 27 37 55 66 71 Residential mortgage 21 23 23 24 22 Other 9 17 18 16 17 ---------------------------------------------------------------- Total foreclosed assets 57 77 96 106 110 ---------------------------------------------------------------- Total nonperforming assets $333 $394 $442 $429 $459 - -------------------------------------------------------------------------------------------------------------------------------