PNC Bank 2001 Annual Report Download - page 95

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93
NOTE 31 PARENT COMPANY
Summarized financial information of the parent company is
as follows:
Statement Of Income
Year ended December 31 - in millions 2001 2000 1999
OPERATING REVENUE
Dividends from:
Bank subsidiaries $1,116 $690 $1,139
Nonbank subsidiaries 60 55 80
Interest income 699
Noninterest income 214
Total operating revenue 1,184 755 1,232
OPERATING
E
XPENS
E
Interest expense 50 54 86
Other expense 6(6) 52
Total operating expense 56 48 138
Income before income taxes and
equity in undistributed net
income of subsidiaries 1,128 707 1,094
Income tax benefits (17) (21) (47)
Income before equity in
undistributed net income of
subsidiaries 1,145 728 1,141
Bank subsidiaries (531) 386 (7)
Nonbank subsidiaries (237) 165 130
Net income $377 $1,279 $1,264
Balance Sheet
December 31 - in millions 2001 2000
ASSETS
Cash and due from banks $1 $1
Securities available for sale 94 53
Investments in:
Bank subsidiaries 5,324 5,640
Nonbank subsidiaries 1,555 1,656
Other assets 152 160
T
otal assets $7,126 $7,510
LIABILITIE
S
Borrowed funds $100
Nonbank affiliate borrowings $1,086 522
Accrued expenses and other liabilities 217 232
T
otal liabilities 1,303 854
S
HAREHOLDERS’
E
QUITY 5,823 6,656
Total liabilities and shareholders’ equity $7,126 $7,510
Borrowed funds at December 31, 2000 were repaid in 2001.
Commercial paper and all other debt issued by PNC Funding
Corp., a wholly owned finance subsidiary, is fully and
unconditionally guaranteed by the parent company. In
addition, in connection with certain affiliates’ commercial
mortgage servicing operations, the parent company has
committed to maintain such affiliates’ net worth above
minimum requirements.
During 2001, 2000 and 1999, the parent company
received net income tax refunds of $37 million, $36 million
and $44 million, respectively. Such refunds represent the
parent company’s portion of consolidated income taxes.
During 2001, 2000 and 1999, the parent company paid
interest of $49 million, $56 million and $96 million,
respectively.
Statement Of Cash Flows
Year ended December 31 - in millions 2001 2000 1999
OPERATING ACTIVITIES
Net income $377 $1,279 $1,264
Adjustments to reconcile net
income to net cash provided
(used) by operating activities:
Equity in undistributed net
earnings of subsidiaries 768 (551) (123)
Other 44 (24) (14)
Net cash provided by operating
activities 1,189 704 1,127
INVESTING ACTIVITIES
Net change in short-term
investments with subsidiary
bank 16 (7)
Net capital (contributed to)
returned from subsidiaries (237) 258 631
Securities available for sale
Sales and maturities 1,206 372 1,592
Purchases (1,247) (425) (1,565)
Cash paid in acquisitions (2)
Other (14) (13) (17)
Net cash (used) provided by
investing activities (292) 208 632
FINANCING ACTIVITIES
Borrowings from nonbank
subsidiary 763 314 687
Repayments on borrowings from
nonbank subsidiary (190) (440) (1,080)
Acquisition of treasury stock (681) (428) (803)
Cash dividends paid to
shareholders (569) (546) (520)
Issuance of stock 181 189 141
Series F preferred stock tender
offer/maturity (301)
Repayments on borrowings (100) (200)
Other 15
Net cash used by financing
activities (897) (911) (1,760)
Increase (decrease) in cash and
due from banks 1 (1)
Cash and due from banks at
beginning of year 1$1
Cash and due from banks at
end of year $1 $1