Exhibit 99.1 PNC BANK CORP. Public Relations One PNC Plaza [PNC BANK LOGO] 249 Fifth Avenue Pittsburgh, PA 15222-2707 412 762-8221 News Release CONTACTS: MEDIA: - ------ R. Jeep Bryant (412) 762-4550 public.relations@pncbank.com INVESTORS: - ---------- William H. Callihan (412) 762-8257 invrela@pncmail.com PNC BANK CORP. REPORTS HIGHER THIRD QUARTER 1999 EARNINGS PITTSBURGH, October 20, 1999 - PNC Bank Corp. ("PNC Bank" - NYSE: PNC) today reported third quarter 1999 earnings of $320 million or $1.06 per diluted share. Excluding $27 million of pretax gains from the sale of branches, earnings for the quarter were $303 million or $1.00 per diluted share and, on that basis, return on average common shareholders' equity was 21.81% and return on average assets was 1.63%. Earnings for the third quarter of 1998 were $281 million or $0.91 per diluted share. "We continue to deliver strong financial performance driven by a mix of businesses that we believe can deliver long-term value for our shareholders," said Thomas H. O'Brien, chairman and chief executive officer of PNC Bank Corp. "We are especially pleased with the continued growth at BlackRock, PFPC Worldwide, PNC Advisors, PNC Mortgage and treasury management services, which has increased our noninterest income to 51% of total revenue." THIRD QUARTER 1999 HIGHLIGHTS o Diluted earnings per share excluding the branch gains increased 10% compared with the prior-year quarter. o Noninterest income to total revenue excluding the effect of the branch gains was 51% driven by double-digit growth in revenue at BlackRock, PFPC Worldwide, PNC Advisors, PNC Mortgage and treasury management services. o The quarterly dividend payable on October 24, 1999 was increased 10% to $.45 per common share. -more- PNC Bank Corp. Reports Third Quarter 1999 Earnings -- Page 2 o PNC Bank announced a definitive agreement to purchase First Data Investor Services Group ("ISG"). The combination of ISG with PFPC Worldwide, PNC Bank's investment servicing subsidiary, will make PFPC Worldwide one of the nation's leading full-service processors for investment products. This transaction is expected to close in the fourth quarter of 1999, subject to regulatory approvals and customary conditions to closing. o BlackRock, PNC Bank's investment management subsidiary, issued 9 million shares of class A common stock at $14.00 per share in an initial public offering on October 1, 1999. PNC Bank will continue to own approximately 70% of BlackRock's stock and expects to record an after-tax gain in the fourth quarter of 1999 of $60 to $70 million depending on whether the underwriters exercise their option to purchase additional shares to cover over-allotments. INCOME STATEMENT REVIEW Taxable-equivalent net interest income was $599 million in the third quarter of 1999, a $54 million decrease compared with the prior-year quarter. The net interest margin was 3.59% for the third quarter of 1999 compared with 3.81% in the third quarter of 1998. These declines were primarily due to the sale of the credit card business in the first quarter of 1999. Excluding the credit card business, net interest income increased $29 million or 5% and the net interest margin widened six basis points compared with the third quarter of 1998. The provision for credit losses was $30 million in the third quarter of 1999 and net charge-offs were $29 million. Noninterest income was $651 million in the third quarter of 1999 a 23% increase compared with the third quarter of 1998 and included $27 million of gains from the sale of branches. Excluding the branch gains, noninterest income increased 18% compared with the prior-year quarter driven by growth in fee-based revenue. Asset management fees grew 22% compared with the prior-year quarter primarily reflecting new business. Assets under management increased to approximately $193 billion at September 30, 1999 compared with $152 billion at September 30, 1998. Mutual fund servicing fees grew 17% compared with the third quarter of 1998 due to an increase in assets serviced. At September 30, 1999, PFPC Worldwide provided custody and accounting/administration services for $353 billion and $246 billion of mutual fund assets, respectively. The comparable amounts were $287 billion and $228 billion, respectively, a year ago. -more- PNC Bank Corp. Reports Third Quarter 1999 Earnings -- Page 3 Consumer services revenue of $105 million for the third quarter of 1999 increased 7% compared with the third quarter of 1998 primarily due to an increase in brokerage fees associated with the Hilliard Lyons acquisition that was substantially offset by lower credit card fees. Corporate services revenue increased $30 million compared with the prior-year quarter due to higher commercial mortgage banking, capital markets and treasury management fees. Net residential mortgage banking revenue grew $28 million or 60% compared with the prior-year quarter primarily due to growth in the servicing portfolio. At September 30, 1999, approximately $73 billion of residential mortgages were serviced compared with $60 billion a year ago. Residential mortgage originations, including both retail and correspondent activity, totaled $4 billion for the third quarter of 1999 compared with $7 billion in the prior-year period. Other noninterest income increased $16 million compared with the third quarter of 1998 due to various operating items. Noninterest expense of $724 million for the third quarter of 1999 increased 4% compared with the third quarter of 1998 primarily to support growth in fee-based businesses. The efficiency ratio of 53.3% remained consistent in the third quarter of 1999 compared with the prior-year quarter reflecting the continued focus on improving returns in traditional businesses. BALANCE SHEET REVIEW Total assets were $73.0 billion at September 30, 1999 compared with $76.2 billion at September 30, 1998. Average earning assets decreased $2.0 billion to $66.0 billion for the third quarter of 1999 compared with the prior-year quarter of $68.0 billion. The decrease was primarily due to a $4.2 billion decrease in average loans in the period-to-period comparison that resulted from the sale of the credit card business and the decision to exit certain institutional lending businesses. Loans represented 78% of average earning assets in the third quarter of 1999 compared with 82% a year ago. Partially offsetting the decrease in average loans was a $1.7 billion increase in average securities available for sale that was attributable to securities held to hedge residential mortgage servicing rights. Average securities available for sale represented 13% and 10% of average earning assets in the third quarter of 1999 and 1998, respectively. -more- PNC Bank Corp. Reports Third Quarter 1999 Earnings -- Page 4 Average deposits were $44.9 billion and represented 61% of total sources of funds for the third quarter of 1999 compared with $44.5 billion and 59%, respectively, in the third quarter of 1998. The increase in average deposits was primarily in consumer deposits. Average borrowed funds decreased $2.4 billion to $20.2 billion compared with the third quarter of 1998. Shareholders' equity totaled $5.9 billion at September 30, 1999. The leverage ratio was 7.76% and Tier I and total risk-based capital ratios are estimated to be 8.4% and 11.8%, respectively. Overall asset quality characteristics remained relatively stable during the third quarter of 1999. The ratio of nonperforming assets to total loans, loans held for sale and foreclosed assets was 0.65% at September 30, 1999 compared with 0.59% and 0.54% at June 30, 1999 and September 30, 1998, respectively. Nonperforming assets were $361 million at September 30, 1999 compared with $333 million and $329 million at June 30, 1999 and September 30, 1998, respectively. The allowance for credit losses was $674 million and represented 1.31% of period-end loans and 215% of nonaccrual loans at September 30, 1999. The comparable amounts were 1.29% and 224% at June 30, 1999 and 1.44% and 289% at September 30, 1998, respectively. Net charge-offs were $29 million or 0.22% of average loans in the third quarter of 1999 compared with $24 million or 0.18% in the second quarter of 1999 and $88 million or 0.62% a year ago. YEAR TO DATE RESULTS Earnings were $960 million or $3.14 per diluted share for the nine months ended September 30, 1999. Results for the first nine months of 1999 included $331 million of pretax gains on the sales of PNC Bank's credit card business, an equity interest in Electronic Payment Services, Inc. and Concord EFS Inc. stock. The first nine months of 1999 also included $142 million of valuation adjustments associated with exiting certain institutional lending businesses, $98 million of costs related to efficiency initiatives and a $30 million contribution to the PNC Bank Foundation. Excluding these items and the branch gains recorded in the third quarter of 1999, year-to-date core earnings were $895 million or $2.92 per diluted share and, on that basis, return on average common shareholders' equity was 21.24% and return on average assets was 1.59%. Earnings for the nine months ended September 30, 1998 were $830 million or $2.68 per diluted share. -more- PNC Bank Corp. Reports Third Quarter 1999 Earnings -- Page 5 PNC Bank Corp., headquartered in Pittsburgh, is one of the largest diversified financial services organizations in the United States. Its major businesses include PNC Regional Bank, PNC Advisors, BlackRock, PFPC Worldwide, PNC Institutional Bank, PNC Secured Finance and PNC Mortgage. Visit PNC Bank on the World Wide Web at www.pncbank.com This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to financial performance and other financial and business matters. Forward-looking statements are typically identified by words such as "believe" or "expect", or future or conditional verbs such as "will" or similar expressions. These forward-looking statements are subject to numerous assumptions, risks and uncertainties, all of which change over time, and PNC Bank assumes no duty to update these forward-looking statements. The following factors, among others, could cause actual results to differ materially from forward-looking statements: increased credit risk: the introduction, withdrawal, success and timing of business initiatives and strategies; the ability to realize cost savings or revenues and implement integration plans associated with acquisitions and divestitures; changes in economic conditions, interest rates, and financial and capital markets; inflation; customer borrowing, repayment, investment, and deposit practices; customer acceptance of PNC Bank products and services; the inability of PNC Bank or others to remediate year 2000 concerns; and the impact, extent, and timing of technological changes, capital management activities, actions of the Federal Reserve Board, and legislative and regulatory actions and reforms. Our SEC reports, accessible on our website, identify additional factors that can affect forward-looking statements. [TABULAR MATERIAL FOLLOWS] -more- PNC BANK CORP. Consolidated Financial Highlights Page 6
Three months ended September 30 Nine months ended September 30 --------------------------------- -------------------------------- Dollars in millions, except per share data 1999 1998 1999 1998 - ----------------------------------------------------------------------------------------------------------------------------------- FINANCIAL PERFORMANCE Revenue Net interest income (taxable-equivalent basis) $599 $653 $1,875 $1,934 Noninterest income 651 529 2,046 1,604 Total revenue 1,250 1,182 3,921 3,538 Net income 320 281 960 830 Per common share Basic earnings 1.07 .92 3.17 2.71 Diluted earnings 1.06 .91 3.14 2.68 Cash dividends declared .41 .39 1.23 1.17 - ----------------------------------------------------------------------------------------------------------------------------------- SELECTED RATIOS Return on Average common shareholders' equity 23.07% 20.52% 22.81% 21.00% Average assets 1.72 1.48 1.71 1.51 Net interest margin 3.59 3.81 3.70 3.86 Noninterest income to total revenue 52.08 44.75 52.18 45.34 Efficiency * 53.34 53.28 53.78 55.50 * Excluding amortization, distributions on capital securities and residential mortgage banking hedging activities ===================================================================================================================================
September 30 June 30 March 31 December 31 September 30 1999 1999 1999 1998 1998 - ----------------------------------------------------------------------------------------------------------------------------------- BALANCE SHEET DATA Assets $73,003 $75,558 $74,868 $77,207 $76,238 Earning assets 64,782 66,889 66,710 69,027 68,638 Loans, net of unearned income 51,398 52,075 52,800 57,650 56,752 Securities available for sale 8,096 8,856 9,170 7,074 7,152 Deposits 45,146 47,685 45,799 47,496 46,875 Borrowed funds 18,898 18,464 19,935 20,946 19,972 Shareholders' equity 5,871 5,755 5,931 6,043 5,793 Common shareholders' equity 5,558 5,442 5,617 5,729 5,479 Book value per common share 18.90 18.40 18.78 18.86 18.21 CAPITAL RATIOS Leverage 7.76% 7.47% 7.28% 7.28% 7.18% Common shareholders' equity to total assets 7.61 7.20 7.50 7.42 7.19 ASSET QUALITY RATIOS Nonperforming assets to total loans, loans held for sale and foreclosed assets .65% .59% .58% .55% .54% Allowance for credit losses to total loans 1.31 1.29 1.27 1.31 1.44 Allowance for credit losses to nonaccrual loans 214.65 224.33 230.93 255.25 289.36 Net charge-offs to average loans .22 .18 .56 1.24 .62 ===================================================================================================================================
-more- PNC BANK CORP. Consolidated Statement of Income Page 7
Three months ended September 30 Nine months ended September 30 --------------------------------- -------------------------------- In millions, except per share data 1999 1998 1999 1998 - ----------------------------------------------------------------------------------------------------------------------------------- INTEREST INCOME Loans and fees on loans $985 $1,166 $3,086 $3,424 Securities available for sale 127 103 363 324 Other 100 85 257 211 - ----------------------------------------------------------------------------------------------------------------------------------- Total interest income 1,212 1,354 3,706 3,959 - ----------------------------------------------------------------------------------------------------------------------------------- INTEREST EXPENSE Deposits 340 371 1,024 1,095 Borrowed funds 278 337 823 950 - ----------------------------------------------------------------------------------------------------------------------------------- Total interest expense 618 708 1,847 2,045 - ----------------------------------------------------------------------------------------------------------------------------------- Net interest income 594 646 1,859 1,914 Provision for credit losses 30 45 133 110 - ----------------------------------------------------------------------------------------------------------------------------------- Net interest income less provision for credit losses 564 601 1,726 1,804 - ----------------------------------------------------------------------------------------------------------------------------------- NONINTEREST INCOME Asset management 175 143 505 421 Mutual fund servicing 55 47 159 134 Service charges on deposits 53 53 154 151 Consumer services 105 98 340 273 Corporate services 84 54 112 167 Net residential mortgage banking 75 47 205 155 Net securities gains 2 1 44 14 Other 102 86 527 289 - ----------------------------------------------------------------------------------------------------------------------------------- Total noninterest income 651 529 2,046 1,604 - ----------------------------------------------------------------------------------------------------------------------------------- NONINTEREST EXPENSE Staff expense 362 335 1,138 1,023 Net occupancy and equipment 103 101 381 301 Amortization 21 28 70 81 Marketing 18 14 50 78 Distributions on capital securities 16 16 48 43 Other 204 202 627 617 - ----------------------------------------------------------------------------------------------------------------------------------- Total noninterest expense 724 696 2,314 2,143 - ----------------------------------------------------------------------------------------------------------------------------------- Income before income taxes 491 434 1,458 1,265 Income taxes 171 153 498 435 - ----------------------------------------------------------------------------------------------------------------------------------- Net income $320 $281 $960 $830 - ----------------------------------------------------------------------------------------------------------------------------------- Net income applicable to diluted earnings $315 $276 $946 $817 EARNINGS PER COMMON SHARE Basic $1.07 $.92 $3.17 $2.71 Diluted 1.06 .91 3.14 2.68 CASH DIVIDENDS DECLARED PER COMMON SHARE .41 .39 1.23 1.17 AVERAGE COMMON SHARES OUTSTANDING Basic 294.5 300.6 298.0 300.5 Diluted 297.6 304.2 301.3 305.3 ===================================================================================================================================
-more- PNC BANK CORP. Details of Net Interest Income Page 8
NET INTEREST INCOME Three months ended September 30 Nine months ended September 30 Taxable-equivalent basis --------------------------------- -------------------------------- In millions 1999 1998 1999 1998 - ----------------------------------------------------------------------------------------------------------------------------------- Interest income Loans $989 $1,172 $3,098 $3,440 Securities available for sale 128 104 366 327 Other 100 85 258 212 - ----------------------------------------------------------------------------------------------------------------------------------- Total interest income 1,217 1,361 3,722 3,979 Interest expense Deposits 340 371 1,024 1,095 Borrowed funds 278 337 823 950 - ----------------------------------------------------------------------------------------------------------------------------------- Total interest expense 618 708 1,847 2,045 - ----------------------------------------------------------------------------------------------------------------------------------- Net interest income $599 $653 $1,875 $1,934 ===================================================================================================================================
Taxable-equivalent basis September 30 June 30 March 31 December 31 September 30 Three months ended - in millions 1999 1999 1999 1998 1998 - ----------------------------------------------------------------------------------------------------------------------------------- Interest income Loans $989 $992 $1,117 $1,171 $1,172 Securities available for sale 128 131 107 102 104 Other 100 86 72 87 85 - ----------------------------------------------------------------------------------------------------------------------------------- Total interest income 1,217 1,209 1,296 1,360 1,361 Interest expense Deposits 340 333 351 376 371 Borrowed funds 278 264 281 319 337 - ----------------------------------------------------------------------------------------------------------------------------------- Total interest expense 618 597 632 695 708 - ----------------------------------------------------------------------------------------------------------------------------------- Net interest income $599 $612 $664 $665 $653 ===================================================================================================================================
-more- PNC BANK CORP. Details of Net Interest Margin Page 9 NET INTEREST MARGIN
Three months ended September 30 Nine months ended September 30 --------------------------------- -------------------------------- Taxable-equivalent basis 1999 1998 1999 1998 - ----------------------------------------------------------------------------------------------------------------------------------- Average yields/rates Yield on earning assets Loans 7.55% 8.28% 7.67% 8.29% Securities available for sale 5.79 5.85 5.64 5.91 Other 7.26 6.87 6.93 6.86 Total yield on earning assets 7.29 7.92 7.35 7.94 Rate on interest-bearing liabilities Deposits 3.69 4.17 3.71 4.17 Borrowed funds 5.40 5.83 5.23 5.83 Total rate on interest-bearing liabilities 4.30 4.82 4.25 4.80 - ----------------------------------------------------------------------------------------------------------------------------------- Interest rate spread 2.99 3.10 3.10 3.14 Impact of noninterest-bearing sources .60 .71 .60 .72 - ----------------------------------------------------------------------------------------------------------------------------------- Net interest margin 3.59% 3.81% 3.70% 3.86% ===================================================================================================================================
Taxable-equivalent basis September 30 June 30 March 31 December 31 September 30 Three months ended 1999 1999 1999 1998 1998 - ----------------------------------------------------------------------------------------------------------------------------------- Average yields/rates Yield on earning assets Loans 7.55% 7.53% 7.91% 8.06% 8.28% Securities available for sale 5.79 5.56 5.55 5.58 5.85 Other 7.26 6.90 6.57 6.70 6.87 Total yield on earning assets 7.29 7.20 7.56 7.70 7.92 Rate on interest-bearing liabilities Deposits 3.69 3.63 3.80 4.03 4.17 Borrowed funds 5.40 5.08 5.21 5.51 5.83 Total rate on interest-bearing liabilities 4.30 4.15 4.31 4.59 4.82 - ----------------------------------------------------------------------------------------------------------------------------------- Interest rate spread 2.99 3.05 3.25 3.11 3.10 Impact of noninterest-bearing sources .60 .59 .61 .66 .71 - ----------------------------------------------------------------------------------------------------------------------------------- Net interest margin 3.59% 3.64% 3.86% 3.77% 3.81% ===================================================================================================================================
-more- PNC BANK CORP. Details Of Noninterest Income Page 10 DETAILS OF NONINTEREST INCOME
Three months ended September 30 Nine months ended September 30 -------------------------------- ------------------------------- In millions 1999 1998 1999 1998 - ---------------------------------------------------------------------------------------------------------------------------------- Asset management $175 $143 $505 $421 Mutual fund servicing 55 47 159 134 Service charges on deposits 53 53 154 151 Consumer services Credit card 3 35 32 93 Brokerage 47 16 138 48 Insurance 13 12 49 33 Other 42 35 121 99 - ---------------------------------------------------------------------------------------------------------------------------------- Total consumer services 105 98 340 273 Corporate services Capital markets 22 13 60 36 Net commercial mortgage banking 12 (4) 45 4 Other 50 45 7 127 - ---------------------------------------------------------------------------------------------------------------------------------- Total corporate services 84 54 112 167 Net residential mortgage banking Mortgage servicing 77 44 207 113 Origination and securitization 31 42 145 134 MSR amortization 41 (143) 25 (214) Hedging activities (74) 104 (172) 122 - ---------------------------------------------------------------------------------------------------------------------------------- Total net residential mortgage banking 75 47 205 155 Net securities gains 2 1 44 14 Other 102 86 527 289 - ---------------------------------------------------------------------------------------------------------------------------------- Total noninterest income $651 $529 $2,046 $1,604 ==================================================================================================================================
September 30 June 30 March 31 December 31 September 30 Three months ended - in millions 1999 1999 1999 1998 1998 - ------------------------------------------------------------------------------------------------------------------------------------ Asset management $175 $169 $161 $205 $143 Mutual fund servicing 55 53 51 48 47 Service charges on deposits 53 51 50 52 53 Consumer services Credit card 3 2 27 36 35 Brokerage 47 45 46 27 16 Insurance 13 17 19 16 12 Other 42 41 38 38 35 - ------------------------------------------------------------------------------------------------------------------------------------ Total consumer services 105 105 130 117 98 Corporate services Capital markets 22 19 19 16 13 Net commercial mortgage banking 12 23 10 22 (4) Other 50 46 (89) 40 45 - ------------------------------------------------------------------------------------------------------------------------------------ Total corporate services 84 88 (60) 78 54 Net residential mortgage banking Mortgage servicing 77 70 60 54 44 Origination and securitization 31 56 58 56 42 MSR amortization 41 (4) (12) (95) (143) Hedging activities (74) (52) (46) 42 104 - ------------------------------------------------------------------------------------------------------------------------------------ Total net residential mortgage banking 75 70 60 57 47 Net securities gains 2 42 2 1 Other 102 86 339 139 86 - ------------------------------------------------------------------------------------------------------------------------------------ Total noninterest income $651 $664 $731 $698 $529 ====================================================================================================================================
-more- PNC BANK CORP. Details of Noninterest Expense Page 11 DETAILS OF NONINTEREST EXPENSE
Three months ended September 30 Nine months ended September 30 --------------------------------- -------------------------------- In millions 1999 1998 1999 1998 - ----------------------------------------------------------------------------------------------------------------------------------- Staff expense Compensation $317 $291 $987 $867 Employee benefits 45 44 151 156 - ----------------------------------------------------------------------------------------------------------------------------------- Total staff expense 362 335 1,138 1,023 Net occupancy and equipment Net occupancy 52 49 191 152 Equipment 51 52 190 149 - ----------------------------------------------------------------------------------------------------------------------------------- Total net occupancy and equipment 103 101 381 301 Amortization Goodwill 19 18 58 49 Other 2 10 12 32 - ----------------------------------------------------------------------------------------------------------------------------------- Total amortization 21 28 70 81 Marketing 18 14 50 78 Distributions on capital securities 16 16 48 43 Other 204 202 627 617 - ----------------------------------------------------------------------------------------------------------------------------------- Total noninterest expense $724 $696 $2,314 $2,143 ===================================================================================================================================
September 30 June 30 March 31 December 31 September 30 Three months ended - in millions 1999 1999 1999 1998 1998 - ----------------------------------------------------------------------------------------------------------------------------------- Staff expense Compensation $317 $319 $351 $353 $291 Employee benefits 45 45 61 40 44 - ----------------------------------------------------------------------------------------------------------------------------------- Total staff expense 362 364 412 393 335 Net occupancy and equipment Net occupancy 52 52 87 52 49 Equipment 51 51 88 56 52 - ----------------------------------------------------------------------------------------------------------------------------------- Total net occupancy and equipment 103 103 175 108 101 Amortization Goodwill 19 20 19 19 18 Other 2 1 9 11 10 - ----------------------------------------------------------------------------------------------------------------------------------- Total amortization 21 21 28 30 28 Marketing 18 17 15 18 14 Distributions on capital securities 16 16 16 17 16 Other 204 246 177 231 202 - ----------------------------------------------------------------------------------------------------------------------------------- Total noninterest expense $724 $767 $823 $797 $696 ===================================================================================================================================
-more- PNC BANK CORP. Consolidated Balance Sheet Page 12
September 30 December 31 September 30 In millions, except par value 1999 1998 1998 - ----------------------------------------------------------------------------------------------------------------------------------- ASSETS Cash and due from banks $2,194 $2,534 $1,982 Short-term investments 1,102 1,014 832 Loans held for sale 4,117 3,226 3,833 Securities available for sale 8,096 7,074 7,152 Loans, net of unearned income of $601, $554 and $445 51,398 57,650 56,752 Allowance for credit losses (674) (753) (816) - ----------------------------------------------------------------------------------------------------------------------------------- Net loans 50,724 56,897 55,936 Goodwill and other amortizable assets 2,943 2,548 2,302 Other 3,827 3,914 4,201 - ----------------------------------------------------------------------------------------------------------------------------------- Total assets $73,003 $77,207 $76,238 =================================================================================================================================== LIABILITIES Deposits Noninterest-bearing $8,660 $9,943 $9,136 Interest-bearing 36,486 37,553 37,739 - ----------------------------------------------------------------------------------------------------------------------------------- Total deposits 45,146 47,496 46,875 Borrowed funds Federal funds purchased 472 390 771 Repurchase agreements 857 1,669 1,041 Bank notes and senior debt 7,379 10,384 10,558 Other borrowed funds 7,563 6,722 5,759 Subordinated debt 2,627 1,781 1,843 - ----------------------------------------------------------------------------------------------------------------------------------- Total borrowed funds 18,898 20,946 19,972 Other 2,240 1,874 2,750 - ----------------------------------------------------------------------------------------------------------------------------------- Total liabilities 66,284 70,316 69,597 - ----------------------------------------------------------------------------------------------------------------------------------- Mandatorily redeemable capital securities of subsidiary trusts 848 848 848 SHAREHOLDERS' EQUITY Preferred stock 7 7 7 Common stock - $5 par value Authorized 450 shares Issued 353 shares 1,764 1,764 1,764 Capital surplus 1,270 1,250 1,178 Retained earnings 5,839 5,262 5,105 Deferred benefit expense (33) (36) (54) Accumulated other comprehensive loss (236) (43) 17 Common stock held in treasury at cost: 59, 49 and 52 shares (2,740) (2,161) (2,224) - ----------------------------------------------------------------------------------------------------------------------------------- Total shareholders' equity 5,871 6,043 5,793 - ----------------------------------------------------------------------------------------------------------------------------------- Total liabilities, capital securities and shareholders' equity $73,003 $77,207 $76,238 ===================================================================================================================================
-more- PNC BANK CORP. Consolidated Average Balance Sheet Data Page 13
Three months ended September 30 Nine months ended September 30 ------------------------------- ------------------------------ In millions 1999 1998 1999 1998 - ----------------------------------------------------------------------------------------------------------------------------------- ASSETS Interest-earning assets Securities available for sale $8,803 $7,073 $8,669 $7,391 Loans, net of unearned income Consumer (excluding credit card) 10,171 11,038 10,615 11,073 Credit card 4,029 899 3,942 Residential mortgage 12,451 12,455 12,378 12,598 Commercial 22,631 23,359 23,343 22,159 Commercial real estate 3,389 2,850 3,394 3,224 Other 3,104 2,207 2,993 2,133 - ----------------------------------------------------------------------------------------------------------------------------------- Total loans, net of unearned income 51,746 55,938 53,622 55,129 Loans held for sale 4,385 3,850 3,838 3,059 Other 1,102 1,097 1,112 1,042 - ----------------------------------------------------------------------------------------------------------------------------------- Total interest-earning assets 66,036 67,958 67,241 66,621 Noninterest-earning assets 7,727 7,332 8,007 7,078 - ----------------------------------------------------------------------------------------------------------------------------------- Total assets $73,763 $75,290 $75,248 $73,699 =================================================================================================================================== LIABILITIES Interest-bearing liabilities Deposits $36,581 $35,353 $36,913 $35,086 Borrowed funds 20,242 22,642 20,785 21,501 - ----------------------------------------------------------------------------------------------------------------------------------- Total interest-bearing liabilities 56,823 57,995 57,698 56,587 Noninterest-bearing deposits 8,318 9,169 8,676 9,353 Other 2,042 1,632 2,167 1,518 - ----------------------------------------------------------------------------------------------------------------------------------- Total liabilities 67,183 68,796 68,541 67,458 Mandatorily redeemable capital securities of subsidiary trusts 848 848 848 733 SHAREHOLDERS' EQUITY 5,732 5,646 5,859 5,508 - ----------------------------------------------------------------------------------------------------------------------------------- Total liabilities, capital securities and shareholders' equity $73,763 $75,290 $75,248 $73,699 =================================================================================================================================== COMMON SHAREHOLDERS' EQUITY $5,419 $5,332 $5,545 $5,193 ===================================================================================================================================
-more- PNC BANK CORP. Consolidated Balance Sheet Data Page 14
AVERAGE BALANCES September 30 June 30 March 31 December 31 September 30 Three months ended - in millions 1999 1999 1999 1998 1998 - ----------------------------------------------------------------------------------------------------------------------------------- ASSETS Interest-earning assets Securities available for sale $8,803 $9,437 $7,755 $7,323 $7,073 Loans, net of unearned income Consumer (excluding credit card) 10,171 10,729 10,955 11,075 11,038 Credit card 2,724 3,570 4,029 Residential mortgage 12,451 12,496 12,184 12,193 12,455 Commercial 22,631 22,846 24,574 24,593 23,359 Commercial real estate 3,389 3,396 3,398 3,442 2,850 Other 3,104 3,012 2,860 2,493 2,207 - ----------------------------------------------------------------------------------------------------------------------------------- Total loans, net of unearned income 51,746 52,479 56,695 57,366 55,938 Loans held for sale 4,385 3,727 3,383 4,295 3,850 Other 1,102 1,236 1,005 881 1,097 - ----------------------------------------------------------------------------------------------------------------------------------- Total interest-earning assets 66,036 66,879 68,838 69,865 67,958 Noninterest-earning assets 7,727 8,181 8,120 7,512 7,332 - ----------------------------------------------------------------------------------------------------------------------------------- Total assets $73,763 $75,060 $76,958 $77,377 $75,290 =================================================================================================================================== LIABILITIES Interest-bearing liabilities Deposits $36,581 $36,786 $37,381 $37,048 $35,353 Borrowed funds 20,242 20,544 21,584 22,723 22,642 - ----------------------------------------------------------------------------------------------------------------------------------- Total interest-bearing liabilities 56,823 57,330 58,965 59,771 57,995 Noninterest-bearing deposits 8,318 8,684 9,035 9,202 9,169 Other 2,042 2,325 2,135 1,756 1,632 - ----------------------------------------------------------------------------------------------------------------------------------- Total liabilities 67,183 68,339 70,135 70,729 68,796 Mandatorily redeemable capital securities of subsidiary trusts 848 848 848 848 848 SHAREHOLDERS' EQUITY 5,732 5,873 5,975 5,800 5,646 - ----------------------------------------------------------------------------------------------------------------------------------- Total liabilities, capital securities and shareholders' equity $73,763 $75,060 $76,958 $77,377 $75,290 =================================================================================================================================== COMMON SHAREHOLDERS' EQUITY $5,419 $5,559 $5,661 $5,486 $5,332 ===================================================================================================================================
LOAN PORTFOLIO September 30 June 30 March 31 December 31 September 30 Period ended - in millions 1999 1999 1999 1998 1998 - ----------------------------------------------------------------------------------------------------------------------------------- Consumer (excluding credit card) $9,522 $10,206 $10,893 $10,980 $11,120 Credit card 2,958 3,874 Residential mortgage 12,567 12,657 12,579 12,265 12,388 Commercial 22,659 22,731 23,082 25,182 24,239 Commercial real estate 3,369 3,468 3,417 3,449 2,838 Other 3,882 3,541 3,360 3,370 2,738 - ----------------------------------------------------------------------------------------------------------------------------------- Total loans 51,999 52,603 53,331 58,204 57,197 Unearned income (601) (528) (531) (554) (445) - ----------------------------------------------------------------------------------------------------------------------------------- Total loans, net of unearned income $51,398 $52,075 $52,800 $57,650 $56,752 ===================================================================================================================================
-more- PNC BANK CORP. Asset Quality Data Page 15
ALLOWANCE FOR CREDIT LOSSES September 30 June 30 March 31 December 31 September 30 Three months ended - in millions 1999 1999 1999 1998 1998 - ------------------------------------------------------------------------------------------------------------------------------------ Beginning balance $673 $672 $753 $816 $859 Charge-offs Consumer (excluding credit card) (15) (16) (18) (21) (19) Credit card (60) (77) (73) Residential mortgage (1) (2) (4) (1) (1) Commercial (18) (18) (12) (101) (8) Commercial real estate (3) (1) (1) (4) Other (2) (1) (2) (2) (2) - ------------------------------------------------------------------------------------------------------------------------------------ Total charge-offs (39) (37) (97) (203) (107) Recoveries Consumer (excluding credit card) 6 7 7 8 8 Credit card 2 5 4 Residential mortgage 1 Commercial 4 6 7 8 6 Commercial real estate 1 1 1 Other 1 1 - ------------------------------------------------------------------------------------------------------------------------------------ Total recoveries 10 13 19 23 19 Net charge-offs Consumer (excluding credit card) (9) (9) (11) (13) (11) Credit card (58) (72) (69) Residential mortgage (1) (2) (3) (1) (1) Commercial (14) (12) (5) (93) (2) Commercial real estate (3) (3) Other (2) (1) (1) (1) (2) - ------------------------------------------------------------------------------------------------------------------------------------ Total net charge-offs (29) (24) (78) (180) (88) Provision for credit losses 30 25 78 115 45 (Divestitures) acquisitions (81) 2 - ------------------------------------------------------------------------------------------------------------------------------------ Ending balance $674 $673 $672 $753 $816 ====================================================================================================================================
NONPERFORMING ASSETS September 30 June 30 March 31 December 31 September 30 Period ended - in millions 1999 1999 1999 1998 1998 - ----------------------------------------------------------------------------------------------------------------------------------- Nonaccrual loans Commercial $222 $197 $184 $188 $148 Commercial real estate 32 42 45 50 73 Residential mortgage 57 57 58 51 56 Consumer 3 4 4 6 5 - ----------------------------------------------------------------------------------------------------------------------------------- Total nonaccrual loans 314 300 291 295 282 Foreclosed and other assets Commercial real estate 10 12 13 15 20 Residential mortgage 14 12 15 17 18 Other 23 9 9 5 9 - ----------------------------------------------------------------------------------------------------------------------------------- Total foreclosed and other assets 47 33 37 37 47 - ----------------------------------------------------------------------------------------------------------------------------------- Total nonperforming assets $361 $333 $328 $332 $329 ====================================================================================================================================