PNC Bank 2004 Annual Report Download - page 12

A SMALL WORLD GROWS
Small World Toys, based in Culver City, California, had
been manufacturing and distributing high quality toys
for 30 years when, in May 2004, it was purchased from
a private owner and then became a public company,
Small World Kids.
The company’s two divisions, Small World Toys and SW Express, sell toys that
promote healthy minds and bodies under several well-known brands, including
IQ Baby, Puzzibilities, All About Baby and Active Edge.
As a public company, growth was imperative for Small World Kids, and when
its leaders saw an opportunity to add the complementary brand Neurosmith
to its stable, PNC Business Credit stepped in with an attractive $16.5 million
credit facility to support the acquisition, as well as Small World’s existing
operations. The result: an ambitious company had its opportunity to grow, and
PNC Business Credit had earned another important long-term relationship.
Business Credit reach
PNC Business Credit’s success on behalf of Small World Kids provides one
snapshot from a year of remarkable growth for this business unit, which now
manages more than $10 billion in commitments. PNC Business Credit closed
118 deals in 2004, an increase of 27 percent over the prior year.
Much of this growth can be attributed to the expanding national scope of
the business unit, which operates from 25 offices from New York to Chicago
to Los Angeles, and to a primary advantage the unit has over many of its
competitors: It can rely on PNC’s broad product range, including merger
and acquisition advice, debt underwriting and treasury management, to win
clients. Armed with this array of products and a national prospect list, the
expanded PNC Business Credit sales force can deliver creative, fast action
to a growing customer base.
Wholesale Growth
Nearly half of PNC’s revenue in the
Wholesale Banking segment – and nearly
two-thirds of our consolidated revenue –
comes from noninterest sources, which is a
good proxy for the success of our fee-based
businesses. Several fee-based product
lines produced exceptional results in 2004,
highlighted by record revenue at Midland
Loan Services and good performance
from Treasury Management and Capital
Markets. These fee-based products within
a traditionally credit-driven segment of
our company provide important earnings
diversification.
10 2004 PNC Summary Annual Report
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