A Financial Analysis of National City Bank (PNC)

A Financial Analysis of

National City Bank / PNC [USA]

By

Asokendu Samanta (SMSID 104118, SID RB09035)

[Course: Financial Markets and Banking]

[Faculty: Dr. Santoshkumar Prakash Sangem, Dr. Ram Kumar Kakani]

Post Graduate Certificate in Business Management (PGCBM 15)

Centre: Powai, Mumbai February 14, 2010 [Time 10:00 a.m.]

A Financial Analysis of National City Bank / PNC

Asokendu Samanta (SID RB09035, SMS ID 104118), PGCBM 15, XLRI, Center: Powai, Mumbai

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A Financial Analysis of

National City Bank / PNC [USA]

[Course: Financial Markets and Banking] [Faculty: Dr. Santoshkumar Prakash Sangem, Dr. Ram Kumar Kakani]

Asokendu Samanta

SMSID 104118, SID RB09035, PGCBM 15, XLRI, Center- Powai, Mumbai, Email: [email protected], February 14, 2010 [Time 10:00 a.m.]

Abstract – National City's [Fig. 1] corporate histories date to the mid-19th century, when National City was founded as the City Bank of Cleveland in 1845. The bank received national charters under the National Banking Act, and was able to print U.S. currency until the United States Treasury assumed operations in the 1920s. The bank had strong bases in its home markets. However, in 2008, National City became a victim of the subprime mortgage crisis and was eventually taken over by PNC Financial Services on October, 2008. The deal received much controversy due to PNC using TARP funds to buy National City only hours after accepting the funds while National City itself was denied funds, as well as civic pride for the city of Cleveland, Ohio, where National City was based. Due to this merger, only combined financial reports of National City and PNC are available in the official website of National City Bank [https://www.nationalcity.com]. As such in this present report, analyses of these combined reports available from the web site of National City / PNC are analyzed, mainly from the financial health point of view of the bank. Various aspects (common size Balance sheet, ratio analysis) are done chapter wise collecting data mainly from bank’s annual reports. Sample calculations (ratio) are shown in details and remarks are made wherever required. At the end, conclusions are drawn in analyzing all aspects. Key Words: CAMELS, Financial Ratio, National City Bank, PNC, Risk

Fig. 1 National City branch in Springboro, Ohio [Source: http://en.wikipedia.org/wiki/National_City_Corp.]



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Contents Abstract 1 Contents 2-3 Chapter 1 Profile of the Bank 4-8 1.1 History 4 1.2 Acquisition by the Bank 5 1.3 Problem of National City 5 1.4 Take Over by PNC and Merger 6 1.4.1 Combined PNC and National City Facts 8 Chapter 2 Financial Statement Analysis 9-13 2.1 Balance Sheet, Profit & Loss, and Cash Flow 9 Chapter 3 Common Size Balance Sheet and Income Statements 14-17 3.1 Common Size Balance Sheet, Profit & Loss Statements 14

Chapter 4 Financial Ratio Analysis 18-30 4.1 Introduction 18 4.1.1 Non-Performing Assets 19 4.2 Capital Adequacy Ratio 20 4.3 Asset Quality, Market Risk and Liquidity Ratio 22



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4.4 Sectoral Concentration Ratios 24 4.5 Liquidity, Relative Growth Rate Ratio 26 4.6 Profitability Ratio 28 4.7 Decomposition of Profitability 30 Chapter 5 Conclusions 31-32 5.1 Summary 31 References 33 Abbreviation 33



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Chapter ONE

PROFILE OF THE BANK

1.1 History

ational City Bank was founded on 17 May 1845, when a group of Cleveland businessmen pooled $50,000 to organize the City Bank of Cleveland, the first bank opened under the Ohio Bank Act of 1845 in a small town with no gas, electricity, public waterworks, or railroad. The city's only bank at the time, opened its doors to the public at No. 52 Superior

Street [Ref 1]. National City Corporation [Table 1.1] was once one of the ten largest banks in America in terms of deposits, mortgages and home equity lines of credit. Subsidiary National City Mortgage is credited for doing the first mortgage in America. The company operated through an extensive banking network primarily in Ohio, Illinois, Indiana, Kentucky, Michigan, Missouri, Pennsylvania, Florida, and Wisconsin, and also serves customers in selected markets nationally. Its core businesses included commercial and retail banking, mortgage financing and servicing, consumer finance, and asset management. The bank reaches out to customers primarily through mass advertising and offers comprehensive banking services online. In its last years the company was commonly known in the media by the abbreviated NatCity with its investment banking arm even bearing the official name NatCity Investments. In 2007, National City Corp. ranked number 188 on the Fortune 500 list, and 9th in terms of revenue in the U.S. commercial banking industry with total assets of about $140 billion.

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Table 1.1 Quick facts of National City Bank [Ref. 1]

Bank National City bank Former type Subsidiary

Founded 1845

Defunct 2009

Headquarters Cleveland, Ohio, USA

Key people Peter E. Raskind;

Industry Super Regional Banks

Products Commercial and retail banking, mortgage financing

Revenue US$ 11.79 billion (2008)

Net income US$ 314 million (2008)

Total assets US$ 150.4 billion (2008)

Employees 31,270 (2006) Full-Time

Parent PNC Financial Services

Website www.nationalcity.com

1.2 Acquisition by the Bank

National City went on an acquisition spree from 2004 through 2008, headed by its $2.1 billion purchase of Cincinnati-based Provident Financial Group in 2004. In addition, in 2005, National City acquired Allegiant Bancorp to secure a presence in the St. Louis, MO market. In 2006, they acquired Fidelity Bankshares Inc. for an estimated $1 billion dollar deal that was half cash, half stock. The bank also acquired Harbor Florida Bancshares Inc. through a $1.1 billion stock deal, with both acquired banks located in Florida; these acquisitions gave National City $7.4 billion of assets and 94 branches in Florida. On the other side of the ledger, National City sold to Bank of America its 83% stake in National Processing Company, which earns fees from processing merchant credit card transactions. The sale of San Jose, California based First Franklin origination franchise and related servicing platform to Merrill Lynch & Co. was completed on 30 December 2006 for $1.3 billion. In May 2007, National City announced the purchase of MAF Bancorp Inc., the holding company for MidAmerica Bank. As of 30 June 2006, MidAmerica Bank had the 9th-ranked market share in the Chicago-Naperville-Joliet Metropolitan Statistical Area at 2.18%. Following the merger using the same dataset, the combined National City and MidAmerica Banks were expected to rank 4th in the Chicago market with a market share of 3.96% and deposits of more than $10 billion. 1.3 Problem of National City The downfall of National City began in 2007 when the United States housing bubble began to burst, and consumers began to default on subprime mortgages, which National City had gotten involved with [Ref 2]. Although National City was otherwise healthy on paper, the mortgage business was dragging down



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profits into losses, with the company CEO even fearing that the bank might fail. National City had put itself up for sale in March 2008. Adding to the bank's problems, The Wall Street Journal reported on June 6, 2008 that National City had entered into a memorandum of understanding with federal regulators, effectively putting the bank on probation. Terms of the confidential agreement, entered into a month earlier with the Office of the Comptroller of the Currency (which regulates nationally chartered banks), were not known. On June 10, 2008, National City Corp. confirmed that it had reached agreements with regulators "regarding capital levels, risk-management practices and other aspects of its business." The company stated that there had been no material developments in these areas since these memorandums of understanding were signed in April and May, 2008. By October 2008, National City was in serious sale discussions following the failure of Washington Mutual and the forced sale of Wachovia to Wells Fargo. Among the publicly known front-runners were Minneapolis-based U.S. Bancorp, Toronto-based Scotiabank, and eventual buyer PNC. Scotiabank, which has long stayed out of the U.S. market unlike its Canadian rivals, was considered the best option for the local government since Scotiabank didn't have a pre-existing presence in the United States, allowing most of the National City operations to stay in Cleveland. Wells Fargo, Fifth Third Bank, and crosstown rival KeyBank all also expressed interest in National City, with Fifth Third even offering to move its corporate headquarters to Cleveland from across the state in Cincinnati if it were to buy National City. 1.4 Take Over by PNC and Merger On October 9, 2008, The Wall Street Journal ran an article citing unnamed sources indicating that National City was in talks with several other banks including PNC [Fig. 1.1] for a possible sale.

Fig. 1.1 Statistics of PNC Financial Service Group [Source: http://en.wikipedia.org/wiki/PNC_Financial_Services]



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The article named Pittsburgh-based PNC Financial Services, Toronto-based Scotiabank, and Minneapolis-based U.S. Bancorp as the leading contenders. A spokesperson for National City declined to comment on the report. PNC Financial Services announced October 24, 2008 its purchase of National City for about $5.2 billion in stock with funds from the U.S. Treasury. The acquisition, which became formal on December 31, 2008 [Ref 3], was described as a "take-under," meaning the purchase price was below National City's market value [Ref 4]. The acquisition was a stock purchase transaction completed before the end of 2008. National City will be merged into PNC [Fig 1.2], and the National City brand is to eventually be dissolved. The deal was approved by shareholders of both banks on December 23, 2008. The deal made PNC the largest bank in Pennsylvania, Ohio, and Kentucky, as well as the second largest bank in Maryland and Indiana. It greatly expanded PNC's presence in the Midwest as well as entering the Florida market. Pittsburgh, Louisville, Kentucky, and Cincinnati were the only three markets before the acquisition deal that both banks had a major presence in. PNC began to convert the National City branches to the PNC name on November 7th, 2009, which also saw the rebranding of National City Mortgage into PNC Mortgage and NatCity Investments fully merged into PNC Investments. In addition, National City's bank charter was merged into PNC's, effectively having the retail banking branches having yet to convert being legally known as PNC Bank.

Fig. 1.2 National City is now a part of PNC Financial Service after the merger in 2008 [Source: https://www.nationalcity.com/]



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The National City name, as expected, lasted well into 2009 since it would take PNC some time to integrate the two banks together. Despite the branch closures and the sale of others to First Niagara, PNC still ended up with a 46% market share in Pittsburgh over three and a half times the market share of second-place Citizens Financial Group with 13%. PNC began to convert the National City branches that were not sold off or closed on November 7, 2009, starting with Pennsylvania (where the two had the most overlap), Florida, and the Youngstown & Steubenville, Ohio regions [Fig 1.3]. The conversion of National City to PNC is expected to be completed by the end of June 2010, in the following phases:

• February 2010 Central & Southern Ohio (including Cincinnati, Dayton, and the state capital of Columbus), Southeastern Indiana, and all of Kentucky.

• April 2010 Northern Ohio (including National City's home market of Cleveland, Akron, Canton, and Toledo) and all of Michigan.

• June 2010 The rest of Indiana and all of Illinois, Missouri, and Wisconsin.

1.4.1 Combined PNC and National City Facts [Ref 1]

• One of the nation’s top five banks by deposits and branches • 60,000 employees across the United States and abroad • 6,000 ATMs • 2,600 branches • $279 billion in assets • $181.1 billion in deposits • Shareholder equity $27.5 billion • Assets Under Mgmt. $121 billion • Customers- Approximately 5 million consumer and small business customers.

Fig. 1.3 National City/PNC footprint [Source: http://www.wikipedia.com]



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Chapter TWO

FINANCIAL

STATEMENTS ANALYSIS

2.1 Balance Sheet, Profit & Loss and Cash Flow

n this chapter, financial statements of National City / PNC are demonstrated. Central banks/ banking regulators, credit rating agencies, equity analysts, lenders & other investors are interested in the analysis of financial statements of banks. As the National City Bank is now a part of PNC Financial Services, consolidated (National City and PNC) balance sheets and profit

and loss account are available in the web site of National City bank [https://www.nationalcity.com/, Ref 5]. These Balance sheets and Profit & Loss Statements are collected for five years (2004 to 2008), arranged [Table 2.1, 2.2, 2.3] and analyzed. Remarks are made at the end.

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Table 2.1 Balance sheet of National City / PNC [Arranged by author collecting data from annual reports, Ref. 5]

Balance Sheet US$, In Million Dec' 08 Dec' 07 Dec' 06 Dec' 05 Dec' 04 Assets Cash and due from banks 4471 3567 3523 3518 3230 Federal funds sold and resale agreements 1856 2729 1763 350 0 Trading securities 1725 3556 0 0 0 Interest-earning deposits with banks 14859 346 0 0 0 Other short-term investments 1025 227 3130 2543 3483 Loans held for sale 4366 3927 2366 2449 1670 Investment securities 43473 30225 23191 20710 16761 Loans 175489 68319 50105 49101 43495 Allowance for loan and lease losses -3917 -830 -560 -596 -670 Net loans 171572 67489 49545 48505 42888 Goodwill 8868 8405 3402 3619 3355 Other intangible assets 2820 1146 641 847 0 Equity investments 8554 6045 5330 1323 0 Other 27492 11258 8929 8090 8336 Total assets 291081 138920 101820 91954 79723 Liabilities Deposits Noninterest -bearing 37148 19440 16070 14988 12915 Interest bearing 155717 63256 50231 45287 40354 Total deposits 192865 82696 66301 60275 53269 Borrowed funds Federal funds purchased and repurchase agreement 5153 9774 4762 5819 1595 Federal home loan bank borrowings 18126 7065 42 0 0 Bank notes and senior debt 13664 6821 3633 3875 2383 Subordinated debt 11208 4506 3962 4469 4050 Other borrowed fund 4089 2765 2629 2734 3936 Total borrowed funds 52240 30931 15028 16897 11964 Allowance for unfunded loan and letters of credit 344 134 120 100 75 Accrued expenses 3949 4330 3970 2770 0 Other 14035 4321 4728 2759 6438 Total liabilities 263433 122412 90147 82801 71746 Minority and noncontrolling interests 2226 1654 885 590 504 Shareholders' Equity Common stock 2261 1764 1764 1764 1764 Capital surplus - preferred stock 7918 0 0 0 0 Capital surplus - common stock and other 8328 2618 1651 1299 1214 Retained earnings 11461 11497 10985 9023 8273 Accumulated other comprehensive loss -3949 -147 -235 -267 -54 Common stock held in treasury at cost -597 -878 -3377 -3256 -3724 Total shareholders' equity 25422 14854 10788 8563 7473 Total liabilities, interests, shareholders' equity 291081 138920 101820 91954 79723



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Table 2.2 Profit and loss account of National City / PNC [Arranged by author collecting data from annual reports, Ref. 5]

Profit and Loss Account US$, In Million Dec' 08 Dec' 07 Dec' 06 Dec' 05 Dec' 04 Interest Income Loans 4138 4232 3203 2669 2043 Investment securities 1746 1429 1049 822 568 Others 429 505 360 243 141 Total interest income (A) 6313 6166 4612 3734 2752 Noninterest Income Fund servicing 904 835 893 870 817 Asset management 686 784 1420 1443 994 Consumer services 623 692 611 518 478 Corporate services 704 713 626 485 423 Service charges on deposits 372 348 313 273 252 Net securities gains (losses) -206 -5 -207 -41 55 Gain on Black Rock/MLIM transaction 2078 253 180 Other 284 423 593 372 373 Total noninterest income (B) 3367 3790 6327 4173 3572 Total income (C=A+B) 9680 9956 10939 7907 6324 Interest Expenses Deposits 1485 2053 1590 981 484 Borrowed funds 1005 1198 777 599 299 Total interest expenses (D) 2490 3251 2367 1580 783 Noninterest Expenses Personnel 2154 2140 2432 2393 2064 Occupancy 368 350 310 313 267 Equipment 359 311 303 296 290 Marketing 125 115 104 106 87 Other 1424 1380 1294 1198 1004 Total noninterest expenses (E) 4430 4296 4443 4306 3712 Total expenses (F=D+E) 6920 7547 6810 5886 4495 Net interest income (A-D) 3823 2915 2245 2154 1969 Provision for credit losses (G) 1517 315 124 21 52 Income before interest and taxes (I=C-F-G) 1243 2094 4005 2000 1777 Minority interest in income (J) 0 0 47 71 42 Income taxes (K) 361 627 1363 604 538 Net income (L=I-J-K) 882 1467 2595 1325 1197 Earning Per Common Share Basic 2.5 4.43 8.89 4.63 4.25 Diluted 2.46 4.35 8.73 4.55 4.21 Average Common Shares Outstanding Basic 344 331 292 286 281 Diluted 347 335 297 290 284



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Table 2.3 Cash flow of National City / PNC [Arranged by author collecting data from annual reports, Ref. 5]

Cash Flow Statement US$, In Million Dec' 08 Dec' 07 Dec' 06 Dec' 05 Dec' 04 Operating Activities Net income 882 1467 2595 1325 1197 Adjustments 1496 659 -661 428 65 Net changes in trading securities, loans, other assets 5036 -2542 225 -2433 -802 Net cash provided (used) by operating activities 7414 -416 2159 -680 460 Investing Activities Repayment of investment securities 4246 4374 3667 4261 4297 Sales 10454 6385 12212 13363 14380 Purchase -19731 -18631 -18779 -24230 -20835 Net changes in federal funds sold and loans -3294 -3307 -1691 1556 -2987 Net cash received from divestiture and others -4661 -3460 -771 -746 -48 Net cash used by investing activities -12986 -14639 -5362 -5796 -5193 Financial Activities Net change in deposits, borrowing etc -5457 8570 5089 4526 6812 Sales/issuances 18346 11209 3075 4640 1627 Repayments/maturities -6413 -4680 -4956 -2402 -3444 Net cash provided by financing activities 6476 15099 3208 6764 4995 Net increase in cash and due from banks 904 44 5 288 262 Cash and due from banks at beginning of period 3567 3523 3518 3230 2968 Cash and due from banks at end of period 4471 3567 3523 3518 3230



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Analysis and Remarks Analyzing the above mentioned statements, the following points can be observed. 1. It is observed from the Balance Sheet that total asset is increased in many folds (3.65 times) from 2004 to 2008. The assets are also increased consistently from 2004 to 2008. This indicates that financial health of PNC is progressing. 2. Consolidated Balance Sheet at December 31, 2008 included National City’s assets and liabilities at estimated fair value as of that date. This acquisition added approximately $134 billion of assets, including $99.7 billion of loans, after giving effect to purchase accounting adjustments, eliminations and reclassifications. Consolidated Balance Sheet at December 31, 2007 reflects the addition of approximately $21 billion of assets resulting from Mercantile acquisition and approximately $3 billion of assets related to Yardville acquisition. 3. Loan given to borrower is increased suddenly in the year 2008 (156.86% increase from 2007 to 2008) whereas this increases for other years are 36.35% (2006 to 2007), 2.04% (2005 to 2006), 12.88% (2004 to 2005). This sudden increase of loan amount may increase the NPA amount and the risk. 4. Profit and Loss account indicates that though the Net interest income increases consistently from 2004 to 2008, Total income started decreasing from 2006. It is also evident that Net income has decreased substantially from 2006 to 2007 and from 2007 to 2008. 5. Net interest income was $2.915 billion for 2007 and $2.245 billion for 2006, an increase of $670 million, or 30%. This increase was consistent with the $20.3 billion, or 26%, increase in average interest-earning assets during 2007 compared with 2006. The net interest margin was 3.00% in 2007 and 2.92% for 2006, an increase of 8 basis points. 6. Cash flows from operating activity are fluctuating. In 2004 it was US$ 460 million, in 2005 it was US$ -680 million, in 2006 it was US$ 2159 million, in 2007 it was US$ -416 million and in 2008 it was US$ 7414 million.



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Chapter

THREE

COMMON SIZE BALANCE SHEET AND INCOME STATEMENT

3.1 Common Size Balance Sheet, Profit & Loss Statements

n this chapter, financial statement analysis of National City / PNC are discussed. Common size balance sheet [Table 3.1] and income statement [Table 3.2] are prepared for ready comparison. Common Size Statements are the first step in any financial analysis. Common size Balance sheet is prepared based on 100% of total assets and Profit and Loss account is determined based

on 100% of total income. Analyses and remarks based on common size statements are made at the end.

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Table 3.1 Common size Balance Sheet of National City / PNC

Common Size Balance Sheet US$, In Million Dec' 08 Dec' 07 Dec' 06 Dec' 05 Dec' 04 Assets Cash and due from banks 1.54 2.57 3.46 3.83 4.05 Federal funds sold and resale agreements 0.64 1.96 1.73 0.38 0.00 Trading securities 0.59 2.56 0.00 0.00 0.00 Interest-earning deposits with banks 5.10 0.25 0.00 0.00 0.00 Other short-term investments 0.35 0.16 3.07 2.77 4.37 Loans held for sale 1.50 2.83 2.32 2.66 2.09 Investment securities 14.94 21.76 22.78 22.52 21.02 Loans 60.29 49.18 49.21 53.40 54.56 Allowance for loan and lease losses -1.35 -0.60 -0.55 -0.65 -0.84 Net loans 58.94 48.58 48.66 52.75 53.80 Goodwill 3.05 6.05 3.34 3.94 4.21 Other intangible assets 0.97 0.82 0.63 0.92 0.00 Equity investments 2.94 4.35 5.23 1.44 0.00 Other 9.44 8.10 8.77 8.80 10.46 Total assets 100.00 100.00 100.00 100.00 100.00 Liabilities Deposits Noninterest -bearing 12.76 13.99 15.78 16.30 16.20 Interest bearing 53.50 45.53 49.33 49.25 50.62 Total deposits 66.26 59.53 65.12 65.55 66.82 Borrowed funds Federal funds purchased and repurchase agreement 1.77 7.04 4.68 6.33 2.00 Federal home loan bank borrowings 6.23 5.09 0.04 0.00 0.00 Bank notes and senior debt 4.69 4.91 3.57 4.21 2.99 Subordinateed debt 3.85 3.24 3.89 4.86 5.08 Other borrowed fund 1.40 1.99 2.58 2.97 4.94 Total borrowed funds 17.95 22.27 14.76 18.38 15.01 Allowance for unfunded loan and letters of credit 0.12 0.10 0.12 0.11 0.09 Accrued expenses 1.36 3.12 3.90 3.01 0.00 Other 4.82 3.11 4.64 3.00 8.08 Total liabilities 90.50 88.12 88.54 90.05 89.99 Minority and noncontrolling interests 0.76 1.19 0.87 0.64 0.63 Shareholders' Equity Common stock 0.78 1.27 1.73 1.92 2.21 Capital surplus - preferred stock 2.72 0.00 0.00 0.00 0.00 Capital surplus - common stock and other 2.86 1.88 1.62 1.41 1.52 Retained earnings 3.94 8.28 10.79 9.81 10.38 Accumulated other comprehensive loss -1.36 -0.11 -0.23 -0.29 -0.07 Common stock held in treasury at cost -0.21 -0.63 -3.32 -3.54 -4.67 Total shareholders' equity 8.73 10.69 10.60 9.31 9.37 Total liabilities, interests, shareholders' equity 100.00 100.00 100.00 100.00 100.00



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Table 3.2 Common size Income Statement (% of total income) of National City / PNC

Common Size Profit and Loss Account US$, In Million Dec' 08 Dec' 07 Dec' 06 Dec' 05 Dec' 04 Interest Income Loans 42.75 42.51 29.28 33.75 32.31 Investment securities 18.04 14.35 9.59 10.40 8.98 Others 4.43 5.07 3.29 3.07 2.23 Total interest income (A) 65.22 61.93 42.16 47.22 43.52 Noninterest Income Fund servicing 9.34 8.39 8.16 11.00 12.92 Asset management 7.09 7.87 12.98 18.25 15.72 Consumer services 6.44 6.95 5.59 6.55 7.56 Corporate services 7.27 7.16 5.72 6.13 6.69 Service charges on deposits 3.84 3.50 2.86 3.45 3.98 Net securities gains (losses) -2.13 -0.05 -1.89 -0.52 0.87 Gain on Black Rock/MLIM transaction 0.00 0.00 19.00 3.20 2.85 Other 2.93 4.25 5.42 4.70 5.90 Total noninterest income (B) 34.78 38.07 57.84 52.78 56.48 Total income (C=A+B) 100 % 100 % 100 % 100 % 100 % Interest Expenses Deposits 15.34 20.62 14.54 12.41 7.65 Borrowed funds 10.38 12.03 7.10 7.58 4.73 Total interest expenses (D) 25.72 32.65 21.64 19.98 12.38 Noninterest Expenses Personnel 22.25 21.49 22.23 30.26 32.64 Occupancy 3.80 3.52 2.83 3.96 4.22 Equipment 3.71 3.12 2.77 3.74 4.59 Marketing 1.29 1.16 0.95 1.34 1.38 Other 14.71 13.86 11.83 15.15 15.88 Total noninterest expenses (E) 45.76 43.15 40.62 54.46 58.70 Total expenses (F=D+E) 71.49 75.80 62.25 74.44 71.08 Net interest income (A-D) 39.49 29.28 20.52 27.24 31.14 Provision for credit losses (G) 15.67 3.16 1.13 0.27 0.82 Income before interest and income taxes (I=C-F-G) 12.84 21.03 36.61 25.29 28.10 Minority interest in income (J) 0.00 0.00 0.43 0.90 0.66 Income taxes (K) 3.73 6.30 12.46 7.64 8.51 Net income (L=I-J-K) 9.11 14.73 23.72 16.76 18.93 Earning Per Common Share Basic 0.03 0.04 0.08 0.06 0.07 Diluted 0.03 0.04 0.08 0.06 0.07 Average Common Shares Outstanding Basic 3.55 3.32 2.67 3.62 4.44 Diluted 3.58 3.36 2.72 3.67 4.49



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Analysis and Remarks Analyzing the above mentioned statements, the following points can be observed. 1. It is observed that Loans attributed major percentage (50 to 60%) of the total assets of PNC. Percentages of loans to the total assets were decreasing minutely from 2004 to 2007 [54.56% in 2004, 53.40% in 2005, 49.21% in 2006, 49.18% in 2007]. However in 2008, a substantial increase in % loan amount is observed [60.29% in 2008]. 2. Percentages of investment securities were nearly constant [21 to 22% of total assets] from 2004 to 2007. In 2008 this percentage is decreased to 14.94%. 3. As the % loan amount is increased and subsequently % investment amount is decreased in 2008, bank is taking more risk in asset side. 4. Deposits attributed major percentage (60 to 65%) in liabilities. It is observed that % deposit [59.53%] was less in 2007. However in 2008 it is increased [66.26%]. 5. Percentages of total borrowed funds are fluctuating from 2004 to 2008. 6. Total interest income has increased substantially from 42-45% (during 2004 to 2006) to 62-65% in 2007 and in 2008.



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Chapter FOUR

FINANCIAL

RATIO ANALYSIS

4.1 Introduction

n this chapter, financial ratio analysis of National City / PNC are discussed. Various ratios are calculated. These are mainly Capital adequacy ratio, Asset Quality, Market Risk and Liquidity ratio, Sectoral Concentration Ratios and Profitability ratios. Sample calculations of each ratio for financial year 2008 are shown. Most commonly used approach for financial analysis of

banks is– CAMELS & variants. CAMELS were originally introduced in the US in 1979 and a framework/ approach to analysis of a bank’s financial soundness. C – Capital Adequacy A – Asset Quality M – Quality of Management E – Earnings Quality L – Liquidity S – Sensitivity to Market Risk Capital Adequacy Ratios give signals of a bank’s soundness. It indicates whether a bank is maintaining sufficient capital against its assets. It is more important since Basel – I accord in 1988 [Ref. 6]. A few

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data in addition to Balance sheet and Profit & Loss Account are given in Table 4.1, which are required to calculate many ratios. These are collected from the annual reports of the bank, PNC Financial service. Analysis and remarks are made whenever is applicable.

Table 4.1 A few data from annual report of National City / PNC

[Arranged by author collecting data from annual reports, Ref. 5]

(US $ in Million) Dec '

08Dec '

07Dec '

06Dec '

05 Dec '

04Gross Nonperforming asset (Gross NPA) 2165 495 171 216 175Provision 1517 315 124 21 52Net Nonperforming asset (Net NPA) 648 180 47 195 123Tier 1 risked based capital 24287 7815 8924 6364 5794Total risk based capital 33116 11803 11559 9277 8401Total risk weighted asset 251106 115132 85539 76673 64539Cash and Short term investments 23936 10425 8416 6411 6713Short term borrrowings 22906 19360 11024 12428 7914Liquid Assets 59600 37100 28100 23600 18600Restructured loans 0 2 0 0 3

4.1.1 Non-Performing Assets In India, as per guidelines of Reserve Bank of India (RBI), advances are classified into performing and non-performing advances (NPAs). NPAs are further classified into sub-standard, doubtful and loss assets based on the criteria stipulated by RBI. An asset, including a leased asset, becomes nonperforming when it ceases to generate income for the Bank. An NPA is a loan or an advance where: 1. Interest and/or installment of principal remains overdue for a period of more than 90 days in respect of a term loan; 2. The account remains "out-of-order'' in respect of an Overdraft or Cash Credit (OD/CC); 3. The bill remains overdue for a period of more than 90 days in case of bills purchased and discounted; 4. A loan granted for short duration crops will be treated as an NPA if the installments of principal or interest thereon remain overdue for two crop seasons; and 5. A loan granted for long duration crops will be treated as an NPA if the installments of principal or interest thereon remain overdue for one crop season. The Bank classifies an account as an NPA only if the interest imposed during any quarter is not fully repaid within 90 days from the end of the relevant quarter.



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From the annual report of PNC it is observed that total nonperforming assets at December 31, 2008 increased $1.670 billion, to $2.165 billion, from the balance at December 31, 2007. These nonperforming assets represented 0.74% of total assets at December 31, 2008 compared with 0.36% at December 31, 2007. The increase in nonperforming assets reflected higher nonaccrual residential real estate development loans and loans in related sectors, and the addition of $722 million of nonperforming assets related to National City acquisition. Based upon the current environment and the acquisition of National City, PNC believes the provision and nonperforming assets will continue to increase in 2009 versus 2008 levels.

4.2 Capital Adequacy Ratio

Table 4.2 Capital adequacy ratio

National City / PNC

Dec ' 08

Dec ' 07

Dec ' 06

Dec ' 05

Dec ' 04

Capital Adequacy Ratio

Capital-Assets Ratio 8.73 % 10.69 % 10.60 % 9.31 % 9.37 %

Net Capital-Assets Ratio 8.51 % 10.56 % 10.55 % 9.10 % 9.22 %

Net NPA Coverage Ratio 2.55 % 1.21 % 0.44 % 2.28 % 1.65 %

Tier-I Capital Ratio 9.67 % 6.79 % 10.43 % 8.30 % 8.98 %

Basel Risk Weighted Capital Ratio 13.19 % 10.25 % 13.51 % 12.10 % 13.02 %

Short Term Leverage Ratio 7.87 % 13.94 % 10.83 % 13.52 % 9.93 %



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Remarks 1. Both Capital asset ratio and Net capital asset ratio were consistent (9.5% to 10.5%) from 2004 to 2007 indicating consistent performance of the bank. However, in 2008, both ratios are decreased. As this ratio indicates the financial soundness of the bank, it can be said that in 2008, bank is less sound financially than before. 2. Net NPA coverage ratio is increased in 2008 as it is evident from the annual report that Non Performing assets represented 0.74% of total assets at December 31, 2008 compared with 0.36% at December 31 from the annual report. 3. It is observed that Basel risk was highest (13.51%) in 2006 and lowest (10.25%) in 2007.

Calculation for Capital Adequacy Ratio of National City / PNC (FY 2008)

Capital-assets ratio = %73.829108125422

assetsTotalworthNet

==

Net capital assets ratio = %51.8291081

64825422assetsTotal

s'NPANetworthNet=

−=

−

Net NPA coverage ratio = %55.225422

648worthNet

s'NPANet==

Tier-I capital ratio = %67.925110624287

assetsweightedriskTotalcapitalITier

==−

Basel risk weighted capital ratio = assetsweightedriskTotal

capitalIIITiercapitalIITiercapitalITier −+−+−

%19.1325110633116

==

Short term leverage ratio = %87.729108122906

assetsTotalfundsborrowedtermShort

==



22

4.3 Asset Quality, Market Risk and Liquidity Ratio These ratios assess the extent of risks a bank is exposed on account of the nature of its asset portfolio [Ref 6]

1) Credit Risk 2) Liquidity Risk 3) Market Risk

In the real world, such neat categorization is not possible as all risks are inter-linked. Credit Risk: Credit Risk is the variation in net income and market value of equity caused by the possibility that the bank may not be able to recover in full the payments contracted upon from its borrowers. Liquidity Risk: Liquidity is the ability of a bank to raise the reserve balances required to settle its inter-bank transactions. Liquidity risk is the variation in net income and market value of equity caused by a bank's difficulty in obtaining cash at a reasonable cost from either the sale of assets or new borrowings. Two dimensions of liquidity are

1) Existing Assets 2) Ability to Borrow

Market Risk: Market Risk is the variation in net income and market value of equity caused by the exposure of a bank to fluctuations in the prices of financial instruments that are either traded in financial markets or whose valuations are linked to some prices determined in financial markets.

Table 4.3 Asset Quality, Market Risk and Liquidity ratio

National City / PNC

Dec ' 08

Dec ' 07

Dec ' 06

Dec ' 05

Dec ' 04

Asset Quality, Market Risk & Liquidity Ratio

Gross NPA Ratio-I 0.74 % 0.36 % 0.17 % 0.23 % 0.22 %

Gross NPA Ratio-II 1.23 % 0.72 % 0.34 % 0.44 % 0.40 %

Net NPA Ratio-I 0.22 % 0.13 % 0.05 % 0.21 % 0.15 %

Net NPA Ratio-II 0.37 % 0.26 % 0.09 % 0.40 % 0.28 %

Provisions Ratio 0.86 % 0.46 % 0.25 % 0.04 % 0.12 %

Restructured Assets Ratio 0.00 % 0.00 % 0.00 % 0.00 % 0.01 %

Asset concentration Ratio* NA NA NA NA NA * Asset concentration ratio is not applicable as PNC has not given any large loans during these years.



23

Remarks 1. Gross NPA Ratio I was nearly 0.2% during 2004 to 2006. However this ratio is increased to 0.36% in 2007 and further increased to 0.74% in 2008. This is not a good sign for the bank, as amount of non performing assets is increasing. 2. Gross NPA Ratio II was consistent [0.34% to 0.4%] during 2004 to 2006. It is increased in 2007 [0.72%] and reached to its highest [1.28%] in 2008. Non performing assets management needs improvement. 3. Both Net NPA ratio I [0.222%] and ratio II [0.37%] are more in 2008, indicating that bank’s performance is not good in recent year. Net NPA Ratio II was worst in 2005, which was 0.40%. 4. As provision for doubtful debt increases, provision ratio is highest [0.86%] in 2008. 5. As PNC has not given any large loans, Asset concentration ratio, which is a ratio of Large Loan and Total advance, is not applicable. 6. As there was no restructured costs in 2005, 2006 and 2008, [Table 4.1], restructured asset ratio was nil for this year. For other two years, 2004 and 2007 restructured cost [Table 4.1] is very minimum.

Calculation for Asset Quality, Market Risk & Liquidity Ratio of National City / PNC (FY 2008)

Gross NPA ratio I = %74.02910812165

assetsTotals'NPAGross

==

Gross NPA ratio II = %23.1175489

2165advancesTotal

s'NPAGross==

Net NPA ratio I = %22.0291081

648assetsTotal

s'NPANet==

Net NPA ratio II = %37.0175489

648advancesTotal

s'NPANet==

Provisions ratio = %86.0175489

1517advancesTotal

debtsdoubtfulforovisionPr==

Restructured assets ratio = % 0.0175489

0advancesTotal

ingrestructurtosubjectAdvances==



24

4.4 Sectoral Concentration Ratios These ratios indicate in which sector the bank is concentrating more in giving loans. From Table 4.4 it is evident that PNC is mainly giving loan in Real Estate, Manufacturing, Retail/Wholesale and Consumer Home Equity. These data are analyzed in Table 4.5.

Table 4.4 Loans given by PNC in various sectors

[Arranged by author collecting data from annual reports, Ref. 5]

Loans (US$ in Million) Dec '

08Dec '

07Dec '

06Dec '

05 Dec '

04Real Estate 34843 14459 6357 5739 4084

Manufacturing 13263 4814 4189 4045 3944

Retail/Wholesale 11482 6013 5301 4854 4961

Consumer Home Equity 38276 14447 13749 13790 12734

Table 4.5 Sectoral Concentration Ratios

National City / PNC

Dec ' 08

Dec ' 07

Dec ' 06

Dec ' 05

Dec ' 04

Sectoral Concentration Ratios

Real Estate 15.25 % 13.79 % 7.78 % 7.79 % 6.41 %

Manufacturing 5.80 % 4.59 % 5.12 % 5.49 % 6.19 %

Retail/Wholesale 5.02 % 5.74 % 6.48 % 6.59 % 7.78 %

Consumer Line of Credit 16.75 % 13.78 % 16.82 % 18.72 % 19.98 %



25

Calculation for Sectoral, Concentration Ratio of National City / PNC (FY 2008)

Real Estate = ( )ssecGexceptsInvestmentadvancesTotaltorsecestaterealtoExposures

−+ L

%25.158554434731025175489

34843=

+++=

Manufacturing = ( )ssecGexceptsInvestmentadvancesTotaltorsecingmanufacturtoExposures

−+ L

%80.58554434731025175489

13263=

+++=

Retail/Wholesale = ( )ssecGexceptsInvestmentadvancesTotaltorsecestatewholesale/retailtoExposures−+ L

%02.158554434731025175489

11482=

+++=

Consumer Home Equity = ( )ssecGexceptsInvestmentadvancesTotaltorsecequityehomconsumertoExposures−+ L

%75.168554434731025175489

38276=

+++=

Remarks 1. PNC’s advances are mainly concentrated in Real Estate and Consumer Line of Credit sector. Combined these two, total percentage is 32% (15.25%+16.75%) of total advances and investments in 2008. 2. It is also observed hat PNC’s advances in Manufacturing and Retail sectors are consistent (5% to 6% on average) throughout the last five years. (2004 to 2008). 3. PNC is giving more loans in Real estate recently (15.25% in 2008) than before (7.79% in 2005 and 6.41% in 2004).



26

4.5 Liquidity, Relative Growth Rate Ratio

Table 4.6 Off Balance Sheet Arrangements [Arranged by author collecting data from annual reports, Ref. 5]

Off Balance Sheet Arrangements Dec ' 08

Dec ' 07

Dec ' 06

Dec ' 05

Dec ' 04

Consolidated VIEs Market Street 2167 Partnership interests in low income housing projects 1499 1108 680 504 Credit Risk Transfer Transaction 1070 Others 12 13 Non Consolidated VIEs Market Street 4916 5304 4020 3519 Collateralized debt obligations 20 255 815 6290 3152 Partnership interests (low income housing project / tax credit investments) 1095 298 33 35 37 Private Investment funds 5186 1872 Total 8600 6965 4868 15722 7745

Table 4.7 Liquidity, Relative Growth Rate ratio

National City / PNC

Dec ' 08

Dec ' 07

Dec ' 06

Dec ' 05

Dec ' 04

Liquidity, Market Growth Rate Ratio

Liquidity Ratio -I 27.62 % 36.35 % 36.34 % 32.46 % 30.40 %

Liquidity Ratio-II 20.48 % 26.71 % 27.60 % 25.67 % 23.33 %

Liquidity Ratio-III (Short-Term Gap Ratio) 104.50% 53.85 % 76.34 % 51.59 % 84.82 %

Off Balance Sheet Exposure Ratio 2.95 % 5.01 % 4.78 % 17.10 % 9.71 %

Relative Growth Rate Ratio-I 2.98 -1.41 0.02 1.17 0.58

Relative Growth Rate Ratio-II 0.83 -1.17 0.10 2.14 0.20

Relative Growth Rate Ratio-III 0.21 1.18 -6.43 6.71 0.74

Relative Growth Rate Ratio-IV 1.08 0.95 1.08 1.23 0.75



27

Calculation for Liquidity, Market Growth Rate Ratio of National City / PNC (FY 2008) Liquidity Ratio I =

( )fundsborrowedtermShortsliabilitiedepositInterlinkdepositsSavingsdeositsDemandassetsLiquid

+++

% 42.13251106 192865

59600=

+=

Liquid Ratio - II = % 20.4829108159600

assetsTotalassetsLiquid

==

Liquidity Ratio III = % 104.502290623936

yearoneinduesLiabilitieyearoneinmaturingAssets

==

Off-Balance sheet exposure ratio = % 2.952910818600

assetsTotalnstransactiosheetbalanceOff

==

Relative Growth Rate Ratio I = sinvestmentofrateGrowth

(%)advancesofrateGrowth

98.2(68319) )604522785541025(6045)(227 )68319175489(

=−−+

+−=

Relative Growth Rate Ratio II = sinvestmentofrateGrowth

holdingssequiritiegovernmentofrateGrowth

83.0(30225) )604522785541025(

6045)(227 )3022543473(=

−−++−

=

Relative Growth Rate Ratio III = assetstotalofrateGrowth

nstransactioetbalancesheoffofrateGrowth

21.0(6965) )138920291081(

(138920) )69658600(=

−−

=

Relative Growth Rate Ratio IV = assetstotalofrateGrowth

assetsweightedriskofrateGrowth

08.1(115132) )138920291081((138920) )115132251106(

=−−

=



28

4.6 Profitability Ratio

Table 4.8 Profitability ratio

National City / PNC

Dec ' 08

Dec ' 07

Dec ' 06

Dec ' 05

Dec ' 04

Profitability Ratio

Return on Equity 3.47 % 9.88 % 24.05 % 15.47 % 16.02 %

Return on Assets 0.30 % 1.06 % 2.55 % 1.44 % 1.50 %

Net Interest Margin 1.31 % 2.10 % 2.20 % 2.34 % 2.47 %

Interest Income Ratio 2.17 % 4.44 % 4.53 % 4.06 % 3.45 %

Interest Expense Ratio 1.02 % 2.86 % 2.91 % 2.05 % 1.20 %

Non Interest Income Ratio 88.07 % 130.02 % 281.83 % 193.73 % 181.41 %

Operating Expenses Ratio 103.12 % -6.20 % 25.19 % -10.75 % 8.30 %

NPA Provision Ratio 39.68 % 10.81 % 5.52 % 0.97 % 2.64 %

Remarks 1. PNC has a consistent Liquidity Ratio I throughout from 2004 to 2007. However, in 2008 this ratio is decreased for the first time below 30%. 2. Liquid asset ratio II, which is a ratio of liquid asset over total asset, is consistent throughout 2004 to 2007 and well over 23%. However, this ratio is nearly 20% in 2008 indicating Bank’s decrease of liquid assets recently which is definitely not a good indication. However, this may be an effect of global recession. 3. Relative growth rate ratio, I, II and III are fluctuating. However Ratio IV is consistent.



29

Remarks 1. It has been observed from Table 4.8 that Return on Equity (ROE) was highest (24.05%) in 2006. ROE is reduced drastically to 3.47% (lowest in 5 years) in 2008. Global recession during that period may be one of the reasons. Profit after tax is decreased in 2007 and in 2008. The same reason may be applicable for Return on Asset which is also lowest (0.30%) in 2008. 2. Net interest margin decreased consistently from 2.47% in 2004 to 1.31% in 2008 (2.47>2.34>2.20>2.10>1.31). It indicates that growth rates of interest expenses are more than the growth rate of interest incomes. 3. Operating expenses is increased drastically in 2008. However this is fluctuating during the last five years. 4. It is observed that up to 2007, bank’s performance was good. However, in 2008, a sudden change is observed in many ways. Provision for Non performing advances is increased (39.68% in 2008 which was 10.81% in 2007, 5.52% in 2006, 0.97% in 2005 and 2.64% in 2004) which is a very bad sign for a bank. Operating expenses in 2008 is also increased.

Calculation for Profitability Ratio of National City / PNC (FY 2008)

Return on Equity = %47.325422

882WorthNet

taxafterProfit==

Return on Assets = %30.0291081

882AssetsTotal

taxafterProfit==

Net Interest Margin = % 1.31291081

2490 - 6313assets Total

expensesInterest - incomeInterest ==

Interest Income Ratio = % 17.2291081

6313assets TotalincomeInterest

==

Interest Expense Ratio = % 1.0252240 192865

2490s Borrowing Deposits

expensesInterest =

+=

+

Non Interest Income Ratio = % 88.0738233367

incomeinterest Net incomeinterest Non

==

Operating Expenses Ratio = incomeinterest Non incomeinterest Net

expenses Operating+

% 103.123367 3823

7414=

+=

NPA Provision Ratio = % 39.6838231517

incomeinterest Net sNPA'against Provision

==



30

4.7 Decomposition of Profitability Once the profitability ratios are calculated, decomposition of profitability can be made by using the figure

below [Fig. 4.1]

Fig. 4.1 Decomposition of profitability [Ref. 6].



31

Chapter FIVE

CONCLUSIONS

5.1 Summary

ational City bank is now a part of PNC Financial Services after it became a victim of the subprime mortgage crisis and was eventually taken over by PNC Financial Services on October, 2008. Due to this merger, only combined financial reports of National City and PNC are available in the official website of National City Bank. These financial reports

are analyzed in the present report and remarks are made in the individual chapter of the analysis. Some of the major conclusions are written below. i) Reflection of Acquisition of National City: Consolidated Balance Sheet at December 31, 2008

included National City’s assets and liabilities at estimated fair value as of that date. This acquisition added approximately $134 billion of assets, including $99.7 billion of loans. Consolidated Balance Sheet at December 31, 2007 reflects the addition of approximately $21 billion of assets resulting from Mercantile acquisition and approximately $3 billion of assets related to Yardville acquisition.

ii) Aggressive Increase in Risks: From Table 3.1, Common size balance sheet, it is evident that, in 2008 the % loan amount is increased (49.18% in 2007 to 60.29% in 2008) and subsequently % investment amount is decreased (21.76% in 2007 to 14.94% in 2008). Bank is taking more risk recently in asset side.

iii) Risk Mitigating Factor: Up to 2007, risk mitigating factors were primarily on asset side activities [Table 5.1]. Liquidity ratios increased consistently. However in 2008, risk mitigating factors are primarily on liability side activities. From Common size Balance sheet [Table 3.1] it

N



32

is evident that %borrowing is reduced from 22.27% in 2007 to 17.95% in 2008 where as liquidity ratio is decreased [Table 4.7]. On the contrary, capital adequacy ratio is also decreased in 2008.

Table 5.1: Risk mitigating factors

2006 to 2007 2007 to 2008 Risk mitigating factor Asset side Liability side

Liquidity ratio Increased (36.34% to 36.35%) Decreased (36.35% to 27.62%)

% Borrowed funds Increased (14.76% to 22.27%) Decreased (22.27% to 17.95%)

% Loan Decreased (49.21% to 49.18%) Increased (49.18% to 60.29%)

iv) Decreased Involvement in Off-Balance Sheet Activities: It is evident from Table 4.7 that off

balance sheet activities are reduced in 2008 from 2007. However, for entire 5 years (2004 to 2008) these activities are fluctuating.

v) Increase of NPA: From the annual report of PNC it is observed that total nonperforming assets at December 31, 2008 increased $1.670 billion, to $2.165 billion, from the balance at December 31, 2007. These nonperforming assets represented 0.74% of total assets at December 31, 2008 compared with 0.36% at December 31, 2007. The increase in nonperforming assets reflected higher nonaccrual residential real estate development loans and loans in related sectors, and the addition of $722 million of nonperforming assets related to National City acquisition. Based upon the current environment and the acquisition of National City, PNC believes the provision and nonperforming assets will continue to increase in 2009 versus 2008 levels.

vi) Increase of NPA Ratios: Gross NPA Ratio I &II and Net NPA Ratio I & II increased in 2007 compared to 2006 [Table 4.3]. All these ratios increased further in 2008 as non performing assets are increasing corroborating the fact mentioned above in point (v). This is not a good sign for a bank.

vii) More Loans in Real Estate Sector: PNC’s advances are mainly concentrated in Real Estate and Consumer Line of Credit sector. Combined these two, total percentage is 32% (15.25%+16.75%) of total advances and investments in 2008. PNC is giving more loans in Real estate recently (15.25% in 2008) than before (7.79% in 2005 and 6.41% in 2004).

viii) Decrease of Liquid Asset: Liquid asset ratio I & II [Table 4.7] were consistent throughout 2004 to 2007. However, these ratios decreased in 2008 indicating Bank’s decrease of liquid assets recently which is definitely not a good indication. However, this may be an effect of global recession.

ix) Decrease in Profit: It has been observed from Table 4.8 that Return on Equity (ROE) was highest (24.05%) in 2006. ROE is reduced drastically to 3.47% (lowest in 5 years) in 2008. Global recession during that period may be one of the reasons. Profit after tax is decreased in 2007 and in 2008. The same reason may be applicable for Return on Asset which is also lowest (0.30%) in 2008.



33

References [1] http://en.wikipedia.org/wiki/National_City_Corp. [2] http://en.wikipedia.org/wiki/National_City_acquisition_by_PNC [3] PNC completes National City acquisition, Associated Press via Yahoo! Finance, December 31,

2008 [4] http://money.cnn.com/news/newsfeeds/ar [5] Official website of the Bank: https://www.nationalcity.com/ [6] Class Note on Financial Market and Banking, by Prof. Santosh Sangem, XLRI, Jamshedpur, 2009 Abbreviation CAMELS Capital, Asset, Management (Quality), Earnings, Liquidity and Sensitivity NPA Non Performing Advances ROA Return on Asset ROE Return on Equity USD US Dollar

T h e E n d

A Financial Analysis of National City Bank (PNC)

Business

ram kumar

santoshkumar

author collecting

risk mitigating

subprime mortgage

buy national

national city

common size