☒
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Pennsylvania
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25-1435979
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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Title of Each Class
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Trading Symbol(s)
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Name of Each Exchange
on Which Registered
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Common Stock, par value $5.00
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PNC
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New York Stock Exchange
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Depositary Shares Each Representing a 1/4,000 Interest in a Share of Fixed-to-
Floating Rate Non-Cumulative Perpetual Preferred Stock, Series P |
PNC P
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New York Stock Exchange
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Depositary Shares Each Representing a 1/4,000 Interest in a Share of 5.375%
Non-Cumulative Perpetual Preferred Stock, Series Q |
PNC Q
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New York Stock Exchange
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Large accelerated filer
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☒
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Accelerated filer
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☐
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Emerging growth company
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Page
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PART I
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Item 1
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Item 1A
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Item 1B
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Item 2
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Item 3
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Item 4
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PART II
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Item 5
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Item 6
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Item 7
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Item 7A
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Item 8
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Page
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Item 8
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Financial Statements and Supplementary Data. (continued)
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Item 9
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Item 9A
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Item 9B
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PART III
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Item 10
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Item 11
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Item 12
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Item 13
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Item 14
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PART IV
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Item 15
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Item 16
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Table
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Description
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Page
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1
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2
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3
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4
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5
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6
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7
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8
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9
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10
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11
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12
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13
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14
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15
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16
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17
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18
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19
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20
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21
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22
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23
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24
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25
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26
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27
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28
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29
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30
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31
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32
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33
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Table
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Description
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Page
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34
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35
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36
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37
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38
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39
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40
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41
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42
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43
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44
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45
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46
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47
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48
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49
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50
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51
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52
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53
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54
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55
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56
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57
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58
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59
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60
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61
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62
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63
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64
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65
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66
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Table
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Description
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Page
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67
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68
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69
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70
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71
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72
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73
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74
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75
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76
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77
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78
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79
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80
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81
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82
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83
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84
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85
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86
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87
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88
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89
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90
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91
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92
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93
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94
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95
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96
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97
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98
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99
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100
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101
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102
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103
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104
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105
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106
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Form 10-K page
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Average Consolidated Balance Sheet And Net Interest Analysis
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172
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Analysis Of Year-To-Year Changes In Net Interest Income
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173
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Book Values Of Securities
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42 and 118-120
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Maturities And Weighted-Average Yield Of Securities
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43 and 120
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Loan Types
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41-42, 57, 110-111 and 174
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Selected Loan Maturities And Interest Sensitivity
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175
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Nonaccrual, Past Due And Restructured Loans And Other Nonperforming Assets
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56-65, 96-100, 109-116 and 175
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Potential Problem Loans
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56-65
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Summary Of Loan Loss Experience
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63-65, 117 and 176
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Allocation Of Allowance For Loan And Lease Losses
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63-65, and 176
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Average Amount And Average Rate Paid On Deposits
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172
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Time Deposits Of $100,000 Or More
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177
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Selected Consolidated Financial Data
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33-35
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Short-term Borrowings – not included as average balances during 2019, 2018 and 2017 were less than 30% of total shareholders’ equity at the end of each period.
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•
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Other commercial banks,
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Savings banks,
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Credit unions,
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Consumer finance companies,
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Leasing companies,
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Other non-bank lenders,
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•
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Financial technology companies,
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•
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Treasury management service companies,
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•
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Insurance companies, and
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•
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Issuers of commercial paper and other securities, including mutual funds.
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•
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Investment management firms,
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•
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Large banks and other financial institutions,
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Brokerage firms,
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•
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Financial technology companies,
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Mutual fund complexes, and
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Insurance companies.
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Commercial banks,
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Investment banking firms,
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•
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Collateralized loan obligation managers,
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•
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Hedge funds,
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•
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Mutual fund complexes,
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•
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Merchant banks,
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•
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Insurance companies,
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•
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Private equity firms, and
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•
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Other investment vehicles.
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•
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Changes in interest rates or interest rate spreads affect the difference between the interest that we earn on assets and the interest that we pay on liabilities, which impacts our overall net interest income and margin as well as our profitability.
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Such changes can affect the ability of borrowers to meet obligations under variable or adjustable rate loans and other debt instruments, and can, in turn, increase our credit losses on those assets.
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Such changes can decrease the demand for interest rate-based products and services, including loans and deposit accounts.
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Such changes affect our hedging of various forms of market and interest rate risk and may decrease the effectiveness of those hedges in helping to manage such risks.
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Movements in interest rates also affect mortgage prepayment speeds and could result in impairments of mortgage servicing assets or otherwise affect the profitability of such assets.
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Increases in interest rates likely lower the price we would receive on fixed-rate customer obligations if we were to sell them.
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If the acquisition includes loan portfolios, the extent of credit losses following completion of the acquisition.
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If a significant aspect of the value of an acquired business is intellectual property, the extent to which the intellectual property may be protected and commercialized by PNC following the acquisition.
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If the acquisition involves entering into new businesses or geographic or other markets, potential limitations on our ability to take advantage of these opportunities as a result of our inexperience with respect to them.
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The results of litigation and governmental investigations that may be pending at the time of the acquisition or be filed or commenced thereafter, as a result of an acquisition or otherwise. It is often hard to predict the results of such legal proceedings. It may also be hard to anticipate what legal proceedings may be started following an acquisition.
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Name
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Age
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Position with PNC
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Year Employed (a)
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William S. Demchak
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57
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Chairman, President and Chief Executive Officer (b)
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2002
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Michael J. Hannon
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63
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Executive Vice President and Chief Credit Officer
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1982
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Vicki C. Henn
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51
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Executive Vice President and Chief Human Resources Officer
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1994
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Gregory B. Jordan
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60
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Executive Vice President, General Counsel and Chief Administrative Officer
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2013
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Stacy M. Juchno
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44
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Executive Vice President and General Auditor
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2009
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Karen L. Larrimer
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57
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Executive Vice President, Chief Customer Officer and Head of Retail Banking
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1995
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Michael P. Lyons
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49
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Executive Vice President, Head of Corporate & Institutional Banking and Head of Asset
Management Group
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2011
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E William Parsley, III
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54
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Executive Vice President and Chief Operating Officer
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2003
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Robert Q. Reilly
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55
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Executive Vice President and Chief Financial Officer
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1987
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Joseph E. Rockey
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55
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Executive Vice President and Chief Risk Officer
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1999
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Steven Van Wyk
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61
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Executive Vice President and Head of Technology and Innovation
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2013
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Gregory H. Kozich
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56
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Senior Vice President and Controller
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2010
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(a)
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Where applicable, refers to year employed by predecessor company.
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(b)
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Mr. Demchak also serves as a director. Biographical information for Mr. Demchak is included in “Election of Directors (Item 1)” in our proxy statement for the 2020 annual meeting of shareholders. See Item 10 of this Report.
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In thousands, except per share data
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2019 period
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Total shares purchased (a)
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Average price paid per share
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Total shares purchased as part of publicly announced programs (b)
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Maximum number of shares that may yet be purchased under the programs (b)
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October 1 – 31
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2,774
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$
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142.77
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2,764
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89,778
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November 1 – 30
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1,768
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$
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151.74
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1,768
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88,010
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December 1 – 31
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1,918
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$
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156.46
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1,918
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86,092
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Total
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6,460
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$
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149.29
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6,450
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(a)
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Includes PNC common stock purchased in connection with our various employee benefit plans generally related to forfeitures of unvested restricted stock awards and shares used to cover employee payroll tax withholding requirements. Note 11 Employee Benefit Plans and Note 12 Stock Based Compensation Plans in the Notes To Consolidated Financial Statements in Item 8 of this Report include additional information regarding our employee benefit and equity compensation plans that use PNC common stock.
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(b)
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On April 4, 2019, our Board of Directors approved the establishment of a new stock repurchase program authorization in the amount of 100 million shares of PNC common stock, effective July 1, 2019. The previous 2015 authorization was terminated as of end of day on June 30, 2019. Under this authorization, repurchases may be made in open market or privately negotiated transactions, with the timing and exact amount of common stock repurchases depending on a number of factors including, among others, market and general economic conditions, regulatory capital considerations, alternative uses of capital, the potential impact on our credit ratings, and contractual and regulatory limitations, including the results of the supervisory assessment of capital adequacy and capital planning processes undertaken by the Federal Reserve as part of the CCAR process. In June 2019, we announced share repurchase programs of up to $4.3 billion for the four quarter period beginning with the third quarter of 2019, in accordance with PNC's 2019 capital plan. In January 2020, we announced an increase to these programs to repurchase up to an additional $1.0 billion in common shares through the end of the second quarter of 2020. The aggregate price of shares repurchased during the fourth quarter of 2019 was $1.0 billion. See the Liquidity and Capital Management portion of the Risk Management section in Item 7 of this Report for more information on the authorized share repurchase programs for the period July 1, 2019 through June 30, 2020.
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Base Period
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Assumes $100 investment at Close of Market on December 31, 2014
Total Return = Price change plus reinvestment of dividends
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5-Year Compound Growth Rate
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Dec. 2014
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Dec. 2015
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Dec. 2016
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Dec. 2017
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Dec. 2018
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Dec. 2019
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PNC
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$
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100
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$
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106.81
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$
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134.34
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$
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169.22
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$
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140.49
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$
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197.94
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14.63
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%
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S&P 500 Index
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$
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100
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$
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101.37
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$
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113.49
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$
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138.26
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$
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132.19
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$
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173.80
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11.69
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%
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S&P 500 Banks
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$
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100
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$
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100.85
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$
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125.36
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$
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153.64
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$
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128.38
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$
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180.55
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12.54
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%
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Peer Group
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$
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100
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$
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99.30
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$
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132.37
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$
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157.91
|
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$
|
126.57
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$
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170.67
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11.28
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%
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Year ended December 31
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Dollars in millions, except per share data
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2019
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2018
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2017
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2016
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2015
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Summary of Operations
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Interest income
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$
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13,762
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$
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12,582
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$
|
10,814
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$
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9,652
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|
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$
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9,323
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Interest expense
|
3,797
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2,861
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|
1,706
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1,261
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1,045
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Net interest income
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9,965
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9,721
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9,108
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8,391
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8,278
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Noninterest income
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7,862
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7,411
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7,221
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6,771
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6,947
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Total revenue
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17,827
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17,132
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16,329
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15,162
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15,225
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Provision for credit losses
|
773
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|
408
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|
441
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433
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255
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Noninterest expense
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10,574
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10,296
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10,398
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9,476
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9,463
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Income before income taxes and noncontrolling interests
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6,480
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6,428
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5,490
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5,253
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|
|
5,507
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Income taxes
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1,062
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|
|
1,082
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|
|
102
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|
1,268
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1,364
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Net income
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5,418
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|
|
5,346
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|
|
5,388
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|
3,985
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|
4,143
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Less: Net income attributable to noncontrolling interests
|
49
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|
45
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50
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|
|
82
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|
37
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Preferred stock dividends
|
236
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|
|
236
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|
|
236
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|
|
209
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|
|
220
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Preferred stock discount accretion and redemptions
|
4
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4
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26
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6
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5
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Net income attributable to common shareholders
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$
|
5,129
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$
|
5,061
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$
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5,076
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$
|
3,688
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$
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3,881
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Per Common Share
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Basic earnings
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$
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11.43
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$
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10.79
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$
|
10.49
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$
|
7.42
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$
|
7.52
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Diluted earnings
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$
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11.39
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$
|
10.71
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$
|
10.36
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$
|
7.30
|
|
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$
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7.39
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Book value
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$
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104.59
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$
|
95.72
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|
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$
|
91.94
|
|
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$
|
85.94
|
|
|
$
|
81.84
|
|
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Cash dividends declared
|
$
|
4.20
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|
|
$
|
3.40
|
|
|
$
|
2.60
|
|
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$
|
2.12
|
|
|
$
|
2.01
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|
|
Effective tax rate (a)
|
16.4
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%
|
|
16.8
|
%
|
|
1.9
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%
|
|
24.1
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%
|
|
24.8
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%
|
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|||||
Performance Ratios
|
|
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|
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||||||||||
Net interest margin (b)
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2.89
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%
|
|
2.97
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%
|
|
2.87
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%
|
|
2.73
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%
|
|
2.74
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%
|
|
|||||
Noninterest income to total revenue
|
44
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%
|
|
43
|
%
|
|
44
|
%
|
|
45
|
%
|
|
46
|
%
|
|
|||||
Efficiency
|
59
|
%
|
|
60
|
%
|
|
64
|
%
|
|
62
|
%
|
|
62
|
%
|
|
|||||
Return on:
|
|
|
|
|
|
|
|
|
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||||||||||
Average common shareholders' equity
|
11.50
|
%
|
|
11.83
|
%
|
|
12.09
|
%
|
|
8.85
|
%
|
|
9.50
|
%
|
|
|||||
Average assets
|
1.35
|
%
|
|
1.41
|
%
|
|
1.45
|
%
|
|
1.10
|
%
|
|
1.17
|
%
|
|
(a)
|
The effective tax rates are generally lower than the statutory rate due to the relationship of pretax income to tax credits and earnings that are not subject to tax.
|
(b)
|
Net interest margin is the total yield on interest-earning assets minus the total rate on interest-bearing liabilities and includes the benefit from use of noninterest-bearing sources. To provide more meaningful comparisons of net interest margins, we use net interest income on a taxable-equivalent basis in calculating average yields used in the calculation of net interest margin by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under GAAP in the Consolidated Income Statement. For additional information, see Reconciliation of Taxable-Equivalent Net Interest Income (Non-GAAP) Statistical Information (Unaudited) in Item 8 of this Report.
|
|
At or for the year ended December 31
|
|
||||||||||||||||||
Dollars in millions, except as noted
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
||||||||||
Balance Sheet Highlights
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets
|
$
|
410,295
|
|
|
$
|
382,315
|
|
|
$
|
380,768
|
|
|
$
|
366,380
|
|
|
$
|
358,493
|
|
|
Loans
|
$
|
239,843
|
|
|
$
|
226,245
|
|
|
$
|
220,458
|
|
|
$
|
210,833
|
|
|
$
|
206,696
|
|
|
Allowance for loan and lease losses
|
$
|
2,742
|
|
|
$
|
2,629
|
|
|
$
|
2,611
|
|
|
$
|
2,589
|
|
|
$
|
2,727
|
|
|
Interest-earning deposits with banks (a)
|
$
|
23,413
|
|
|
$
|
10,893
|
|
|
$
|
28,595
|
|
|
$
|
25,711
|
|
|
$
|
30,546
|
|
|
Investment securities
|
$
|
86,824
|
|
|
$
|
82,701
|
|
|
$
|
76,131
|
|
|
$
|
75,947
|
|
|
$
|
70,528
|
|
|
Loans held for sale
|
$
|
1,083
|
|
|
$
|
994
|
|
|
$
|
2,655
|
|
|
$
|
2,504
|
|
|
$
|
1,540
|
|
|
Equity investments (b)
|
$
|
13,734
|
|
|
$
|
12,894
|
|
|
$
|
11,392
|
|
|
$
|
10,728
|
|
|
$
|
10,587
|
|
|
Mortgage servicing rights
|
$
|
1,644
|
|
|
$
|
1,983
|
|
|
$
|
1,832
|
|
|
$
|
1,758
|
|
|
$
|
1,589
|
|
|
Goodwill
|
$
|
9,233
|
|
|
$
|
9,218
|
|
|
$
|
9,173
|
|
|
$
|
9,103
|
|
|
$
|
9,103
|
|
|
Other assets
|
$
|
32,202
|
|
|
$
|
34,408
|
|
|
$
|
27,894
|
|
|
$
|
27,506
|
|
|
$
|
26,566
|
|
|
Noninterest-bearing deposits
|
$
|
72,779
|
|
|
$
|
73,960
|
|
|
$
|
79,864
|
|
|
$
|
80,230
|
|
|
$
|
79,435
|
|
|
Interest-bearing deposits
|
$
|
215,761
|
|
|
$
|
193,879
|
|
|
$
|
185,189
|
|
|
$
|
176,934
|
|
|
$
|
169,567
|
|
|
Total deposits
|
$
|
288,540
|
|
|
$
|
267,839
|
|
|
$
|
265,053
|
|
|
$
|
257,164
|
|
|
$
|
249,002
|
|
|
Borrowed funds (c)
|
$
|
60,263
|
|
|
$
|
57,419
|
|
|
$
|
59,088
|
|
|
$
|
52,706
|
|
|
$
|
54,532
|
|
|
Total shareholders’ equity
|
$
|
49,314
|
|
|
$
|
47,728
|
|
|
$
|
47,513
|
|
|
$
|
45,699
|
|
|
$
|
44,710
|
|
|
Common shareholders’ equity
|
$
|
45,321
|
|
|
$
|
43,742
|
|
|
$
|
43,530
|
|
|
$
|
41,723
|
|
|
$
|
41,258
|
|
|
Accumulated other comprehensive income (loss)
|
$
|
799
|
|
|
$
|
(725
|
)
|
|
$
|
(148
|
)
|
|
$
|
(265
|
)
|
|
$
|
130
|
|
|
Period-end common shares outstanding (millions)
|
433
|
|
|
457
|
|
|
473
|
|
|
485
|
|
|
504
|
|
|
|||||
Loans to deposits
|
83
|
%
|
|
84
|
%
|
|
83
|
%
|
|
82
|
%
|
|
83
|
%
|
|
|||||
Client Assets (billions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Discretionary client assets under management
|
$
|
154
|
|
|
$
|
148
|
|
|
$
|
151
|
|
|
$
|
137
|
|
|
$
|
134
|
|
|
Nondiscretionary client assets under administration
|
143
|
|
|
124
|
|
|
131
|
|
|
120
|
|
|
119
|
|
|
|||||
Total client assets under administration
|
297
|
|
|
272
|
|
|
282
|
|
|
257
|
|
|
253
|
|
|
|||||
Brokerage account client assets
|
54
|
|
|
47
|
|
|
49
|
|
|
44
|
|
|
43
|
|
|
|||||
Total
|
$
|
351
|
|
|
$
|
319
|
|
|
$
|
331
|
|
|
$
|
301
|
|
|
$
|
296
|
|
|
Capital Ratios (d) (e)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basel III (f)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Common equity Tier 1
|
9.5
|
%
|
|
9.6
|
%
|
|
9.8
|
%
|
|
10.0
|
%
|
|
10.0
|
%
|
|
|||||
Tier 1 risk-based
|
10.7
|
%
|
|
10.8
|
%
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
|||||
Total capital risk-based
|
12.7
|
%
|
|
13.0
|
%
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
|||||
Pro forma Basel III (Non-GAAP) (g)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Common equity Tier 1
|
10.1
|
%
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
|||||
Tier 1 risk-based
|
11.2
|
%
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
|||||
Total capital risk-based
|
13.4
|
%
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
|||||
Transitional Basel III
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Common equity Tier I
|
N/A
|
|
|
N/A
|
|
|
10.4
|
%
|
|
10.6
|
%
|
|
10.6
|
%
|
|
|||||
Tier 1 risk-based capital
|
N/A
|
|
|
N/A
|
|
|
11.6
|
%
|
|
12.0
|
%
|
|
12.0
|
%
|
|
|||||
Other Selected Ratios
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividend payout
|
36.7
|
%
|
|
31.5
|
%
|
|
24.7
|
%
|
|
29.0
|
%
|
|
27.0
|
%
|
|
|||||
Common shareholders’ equity to total assets
|
11.0
|
%
|
|
11.4
|
%
|
|
11.4
|
%
|
|
11.4
|
%
|
|
11.5
|
%
|
|
|||||
Average common shareholders’ equity to average assets
|
11.1
|
%
|
|
11.3
|
%
|
|
11.3
|
%
|
|
11.5
|
%
|
|
11.5
|
%
|
|
|||||
Selected Statistics
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Employees
|
51,918
|
|
|
53,063
|
|
|
52,906
|
|
|
52,006
|
|
|
52,513
|
|
|
|||||
Retail Banking branches
|
2,296
|
|
|
2,372
|
|
|
2,459
|
|
|
2,520
|
|
|
2,616
|
|
|
|||||
ATMs
|
9,091
|
|
|
9,162
|
|
|
9,051
|
|
|
9,024
|
|
|
8,956
|
|
|
(a)
|
Includes balances held with the Federal Reserve Bank of Cleveland of $23.2 billion, $10.5 billion, $28.3 billion, $25.1 billion and $30.0 billion as of December 31, 2019, 2018, 2017, 2016 and 2015, respectively.
|
(b)
|
Includes our equity investment in BlackRock.
|
(c)
|
Includes long-term borrowings of $33.2 billion, $37.4 billion, $43.1 billion, $38.3 billion and $43.6 billion for 2019, 2018, 2017, 2016 and 2015, respectively. Borrowings which mature more than one year after December 31, 2019 are considered to be long-term.
|
(d)
|
See capital ratios discussion in the Supervision and Regulation section of Item 1 and in the Liquidity and Capital Management portion of the Risk Management section in Item 7 of this Report for additional discussion on these capital ratios. Additional information on the 2015-2017 fully phased-in ratios and Transitional Basel III ratios is included in the Statistical Information (Unaudited) section in Item 8 of this Report.
|
(e)
|
All ratios are calculated using the regulatory capital methodology applicable to PNC during each period presented, except for the 2015-2017 Basel III Common equity Tier 1 ratios, which are fully phased-in Basel III ratios and are presented as pro forma estimates. Ratios for all periods were calculated based on the standardized approach.
|
(f)
|
The 2019 and 2018 Basel III ratios for Common equity Tier 1 capital and Tier 1 risk-based capital reflect the full phase-in of all Basel III adjustments to these metrics applicable to PNC. The 2019 and 2018 Basel III Total capital risk-based ratios include nonqualifying trust preferred capital securities of $60 million and $80 million, respectively, that are subject to a phase-out period that runs through 2021.
|
(g)
|
Pro forma Basel III ratios are calculated as if the 2019 Tailoring Rules, and PNC's election to opt-out of the inclusion of certain elements of accumulated other comprehensive income in regulatory capital, had been in effect on December 31, 2019. We believe that the pro forma Basel III ratios are a useful tool to assess the impact to our capital position after adoption of the 2019 Tailoring Rules.
|
•
|
Expanding our leading banking franchise to new markets and digital platforms;
|
•
|
Deepening customer relationships by delivering a superior banking experience and financial solutions; and
|
•
|
Leveraging technology to innovate and enhance products, services, security and processes.
|
•
|
Global and domestic economic conditions, including the continuity and stamina of the current U.S. economic expansion;
|
•
|
The monetary policy actions and statements of the Federal Reserve and the Federal Open Market Committee (FOMC);
|
•
|
The level of, and direction, timing and magnitude of movement in, interest rates and the shape of the interest rate yield curve;
|
•
|
The functioning and other performance of, and availability of liquidity in, U.S. and global financial markets, including capital markets;
|
•
|
The impact of tariffs and other trade policies of the U.S. and its global trading partners;
|
•
|
Changes in the competitive and regulatory landscape;
|
•
|
The impact of legislative, regulatory and administrative initiatives and actions;
|
•
|
The impact of market credit spreads on asset valuations;
|
•
|
The ability of customers, counterparties and issuers to perform in accordance with contractual terms, and the resulting impact on our asset quality;
|
•
|
Loan demand, utilization of credit commitments and standby letters of credit; and
|
•
|
The impact on customers and changes in customer behavior due to changing business and economic conditions or regulatory or legislative initiatives.
|
•
|
Effectively managing capital and liquidity including:
|
•
|
Continuing to maintain and grow our deposit base as a low-cost stable funding source;
|
•
|
Prudent liquidity and capital management to meet evolving regulatory capital, capital planning, stress testing and liquidity standards; and
|
•
|
Actions we take within the capital and other financial markets.
|
•
|
Execution of our strategic priorities;
|
•
|
Management of credit risk in our portfolio;
|
•
|
Our ability to manage and implement strategic business objectives within the changing regulatory environment;
|
•
|
The impact of legal and regulatory-related contingencies; and
|
•
|
The appropriateness of reserves needed for critical accounting estimates and related contingencies.
|
•
|
Total revenue increased $695 million, or 4%, to $17.8 billion.
|
•
|
Net interest income increased $244 million, or 3%, to $10.0 billion.
|
•
|
Net interest margin decreased to 2.89% for 2019 compared to 2.97% for 2018.
|
•
|
Noninterest income increased $451 million, or 6%, to $7.9 billion.
|
•
|
Provision for credit losses was $773 million in 2019 compared to $408 million for 2018.
|
•
|
Noninterest expense increased $278 million, or 3%, to $10.6 billion.
|
•
|
We generated positive operating leverage in 2019 of 1.4%.
|
•
|
Earnings per diluted common share increased reflecting lower average common shares outstanding due to share repurchases, and higher net income.
|
•
|
Total loans increased $13.6 billion, or 6%, to $239.8 billion.
|
•
|
Total commercial lending grew $8.3 billion, or 5%, to $160.6 billion.
|
•
|
Total consumer lending increased $5.3 billion, or 7%, to $79.2 billion.
|
•
|
Total deposits increased $20.7 billion, or 8%, to $288.5 billion.
|
•
|
Investment securities increased $4.1 billion, or 5%, to $86.8 billion.
|
•
|
Interest earning deposits with banks, primarily with the Federal Reserve Bank, increased $12.5 billion to $23.4 billion.
|
•
|
Borrowed funds of $60.3 billion increased $2.8 billion, or 5%.
|
•
|
Shareholders' equity increased $1.6 billion, or 3%, to $49.3 billion.
|
•
|
At December 31, 2019 compared to December 31, 2018:
|
▪
|
Nonperforming assets of $1.8 billion decreased $56 million, or 3%.
|
▪
|
Overall loan delinquencies of $1.5 billion increased $19 million, or 1%.
|
•
|
Net charge-offs of $642 million in 2019 increased 53% compared to net charge-offs of $420 million for 2018.
|
•
|
The allowance for loan and lease losses to total loans was 1.14% at December 31, 2019 and 1.16% at December 31, 2018.
|
•
|
The Basel III common equity Tier 1 capital ratio was 9.5% at December 31, 2019 compared with 9.6% at December 31, 2018.
|
•
|
In 2019, we returned $5.4 billion of capital to shareholders through repurchases of 25.9 million common shares for $3.5 billion and dividends on common shares of $1.9 billion.
|
•
|
In June 2019, we announced share repurchase programs of up to $4.3 billion for the four quarter period beginning with the third quarter of 2019. In January 2020, we announced an increase to these programs of up to $1.0 billion in additional common share repurchases through the end of second quarter of 2020.
|
•
|
The quarterly cash dividend on common stock was increased from $.95 to $1.15 per share effective with the August 5, 2019 dividend payment date.
|
•
|
The U.S. economy grew at a solid pace in 2019 albeit more slowly than in 2018. Economic growth is expected to slow noticeably in 2020.
|
•
|
Job growth will continue in 2020, but at a slower pace from 2019 due to both difficulty in finding workers and slower economic growth. The unemployment rate is expected to remain near its current level in the near term, but the labor market will remain tight, pushing wages higher and supporting continued gains in consumer spending.
|
•
|
Inflation is expected to continue to slow in the near term because of lower commodity prices associated with coronavirus. Inflation is expected to gradually increase in 2021.
|
•
|
Our current baseline forecast expects the federal funds rate to remain unchanged in 2020. The federal funds rate is modestly positive for near-term economic growth in its current range of 1.50% to 1.75%.
|
•
|
Average loan growth to be between 4% and 5%;
|
•
|
Revenue growth on the low end of low-single digits, on a percentage basis, including approximately 1% of net interest income growth;
|
•
|
Noninterest expense to remain stable;
|
•
|
The effective tax rate to be approximately 17.5%; and
|
•
|
To generate positive operating leverage of approximately 1% in 2020.
|
•
|
Average loans to be up approximately 1%;
|
•
|
Net interest income to decline approximately 2%, reflecting the first quarter of 2020 decline in interest rates as well as one less day in the quarter;
|
•
|
Fee income to be down approximately 6%, which includes the impact of a charitable contribution by BlackRock as previously announced in its Form 8-K filed on February 13, 2020. Fee income consists of asset management, consumer services, corporate services, residential mortgage and service charges on deposits;
|
•
|
Other noninterest income to be between $300 million and $350 million, excluding net securities gains and activities related to Visa Class B common shares;
|
•
|
Noninterest expense to be down in the mid-single digit range, on a percentage basis; and
|
•
|
Provision for credit losses to be between $225 million and $300 million.
|
|
2019
|
|
2018
|
||||||||||||||
Year ended December 31
Dollars in millions
|
Average
Balances
|
|
Average
Yields/
Rates
|
|
Interest
Income/
Expense
|
|
|
Average
Balances
|
|
Average
Yields/
Rates
|
|
Interest
Income/
Expense
|
|
||||
Assets
|
|
|
|
|
|
|
|
||||||||||
Interest-earning assets
|
|
|
|
|
|
|
|
||||||||||
Investment securities
|
$
|
83,666
|
|
2.93
|
%
|
$
|
2,450
|
|
|
$
|
78,784
|
|
2.91
|
%
|
$
|
2,289
|
|
Loans
|
235,016
|
|
4.51
|
%
|
10,604
|
|
|
223,278
|
|
4.33
|
%
|
9,667
|
|
||||
Interest-earning deposits with banks
|
16,878
|
|
2.09
|
%
|
353
|
|
|
20,603
|
|
1.84
|
%
|
379
|
|
||||
Other
|
12,425
|
|
3.69
|
%
|
458
|
|
|
8,093
|
|
4.47
|
%
|
362
|
|
||||
Total interest-earning assets/interest income
|
$
|
347,985
|
|
3.98
|
%
|
13,865
|
|
|
$
|
330,758
|
|
3.84
|
%
|
12,697
|
|
||
Liabilities
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing liabilities
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits
|
$
|
204,588
|
|
.97
|
%
|
1,986
|
|
|
$
|
186,361
|
|
.66
|
%
|
1,229
|
|
||
Borrowed funds
|
61,528
|
|
2.94
|
%
|
1,811
|
|
|
59,306
|
|
2.75
|
%
|
1,632
|
|
||||
Total interest-bearing liabilities/interest expense
|
$
|
266,116
|
|
1.43
|
%
|
3,797
|
|
|
$
|
245,667
|
|
1.16
|
%
|
2,861
|
|
||
Net interest income/margin (Non-GAAP)
|
|
2.89
|
%
|
10,068
|
|
|
|
2.97
|
%
|
9,836
|
|
||||||
Taxable-equivalent adjustments
|
|
|
(103
|
)
|
|
|
|
(115
|
)
|
||||||||
Net interest income (GAAP)
|
|
|
$
|
9,965
|
|
|
|
|
$
|
9,721
|
|
(a)
|
Interest income calculated as taxable-equivalent interest income. To provide more meaningful comparisons of interest income and yields for all interest-earning assets, as well as net interest margins, we use interest income on a taxable-equivalent basis in calculating average yields and net interest margins by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under GAAP on the Consolidated Income Statement. For more information, see Reconciliation of Taxable-Equivalent Net Interest Income (Non-GAAP) in the Statistical Information (Unaudited) section in Item 8 of this Report.
|
Year ended December 31
|
|
|
Change
|
||||||||
Dollars in millions
|
2019
|
|
2018
|
|
$
|
|
%
|
||||
Noninterest income
|
|
|
|
|
|||||||
Asset management
|
$
|
1,850
|
|
$
|
1,825
|
|
$
|
25
|
|
1
|
%
|
Consumer services
|
1,555
|
|
1,502
|
|
53
|
|
4
|
%
|
|||
Corporate services
|
1,914
|
|
1,849
|
|
65
|
|
4
|
%
|
|||
Residential mortgage
|
368
|
|
316
|
|
52
|
|
16
|
%
|
|||
Service charges on deposits
|
702
|
|
714
|
|
(12
|
)
|
(2
|
)%
|
|||
Other
|
1,473
|
|
1,205
|
|
268
|
|
22
|
%
|
|||
Total noninterest income
|
$
|
7,862
|
|
$
|
7,411
|
|
$
|
451
|
|
6
|
%
|
Year ended December 31
|
|
|
Change
|
||||||||
Dollars in millions
|
2019
|
|
2018
|
|
$
|
|
%
|
||||
Noninterest expense
|
|
|
|
|
|||||||
Personnel
|
$
|
5,647
|
|
$
|
5,471
|
|
$
|
176
|
|
3
|
%
|
Occupancy
|
834
|
|
818
|
|
16
|
|
2
|
%
|
|||
Equipment
|
1,210
|
|
1,103
|
|
107
|
|
10
|
%
|
|||
Marketing
|
301
|
|
285
|
|
16
|
|
6
|
%
|
|||
Other
|
2,582
|
|
2,619
|
|
(37
|
)
|
(1
|
)%
|
|||
Total noninterest expense
|
$
|
10,574
|
|
$
|
10,296
|
|
$
|
278
|
|
3
|
%
|
|
December 31
|
|
|
December 31
|
|
|
Change
|
|
||||||
Dollars in millions
|
2019
|
|
|
2018
|
|
|
$
|
%
|
|
|||||
Assets
|
|
|
|
|
|
|
|
|||||||
Interest-earning deposits with banks
|
$
|
23,413
|
|
|
$
|
10,893
|
|
|
$
|
12,520
|
|
115
|
%
|
|
Loans held for sale
|
1,083
|
|
|
994
|
|
|
89
|
|
9
|
%
|
|
|||
Investment securities
|
86,824
|
|
|
82,701
|
|
|
4,123
|
|
5
|
%
|
|
|||
Loans
|
239,843
|
|
|
226,245
|
|
|
13,598
|
|
6
|
%
|
|
|||
Allowance for loan and lease losses
|
(2,742
|
)
|
|
(2,629
|
)
|
|
(113
|
)
|
(4
|
)%
|
|
|||
Mortgage servicing rights
|
1,644
|
|
|
1,983
|
|
|
(339
|
)
|
(17
|
)%
|
|
|||
Goodwill
|
9,233
|
|
|
9,218
|
|
|
15
|
|
—
|
|
|
|||
Other, net
|
50,997
|
|
|
52,910
|
|
|
(1,913
|
)
|
(4
|
)%
|
|
|||
Total assets
|
$
|
410,295
|
|
|
$
|
382,315
|
|
|
$
|
27,980
|
|
7
|
%
|
|
Liabilities
|
|
|
|
|
|
|
|
|||||||
Deposits
|
$
|
288,540
|
|
|
$
|
267,839
|
|
|
$
|
20,701
|
|
8
|
%
|
|
Borrowed funds
|
60,263
|
|
|
57,419
|
|
|
2,844
|
|
5
|
%
|
|
|||
Other
|
12,149
|
|
|
9,287
|
|
|
2,862
|
|
31
|
%
|
|
|||
Total liabilities
|
360,952
|
|
|
334,545
|
|
|
26,407
|
|
8
|
%
|
|
|||
Equity
|
|
|
|
|
|
|
|
|||||||
Total shareholders’ equity
|
49,314
|
|
|
47,728
|
|
|
1,586
|
|
3
|
%
|
|
|||
Noncontrolling interests
|
29
|
|
|
42
|
|
|
(13
|
)
|
(31
|
)%
|
|
|||
Total equity
|
49,343
|
|
|
47,770
|
|
|
1,573
|
|
3
|
%
|
|
|||
Total liabilities and equity
|
$
|
410,295
|
|
|
$
|
382,315
|
|
|
$
|
27,980
|
|
7
|
%
|
|
•
|
Total assets increased as a result of loan growth, higher interest-earning deposits with banks and higher investment securities;
|
•
|
Total liabilities increased due to deposit growth and higher borrowed funds;
|
•
|
Total equity increased due to higher retained earnings driven by net income substantially offset by share repurchases and common and preferred dividends and as a result of higher accumulated other comprehensive income (AOCI).
|
|
December 31
|
|
|
December 31
|
|
|
Change
|
|
||||||
Dollars in millions
|
2019
|
|
|
2018
|
|
|
$
|
%
|
|
|||||
Commercial lending
|
|
|
|
|
|
|
|
|||||||
Commercial
|
$
|
125,337
|
|
|
$
|
116,834
|
|
|
$
|
8,503
|
|
7
|
%
|
|
Commercial real estate
|
28,110
|
|
|
28,140
|
|
|
(30
|
)
|
—
|
|
|
|||
Equipment lease financing
|
7,155
|
|
|
7,308
|
|
|
(153
|
)
|
(2
|
)%
|
|
|||
Total commercial lending
|
160,602
|
|
|
152,282
|
|
|
8,320
|
|
5
|
%
|
|
|||
Consumer lending
|
|
|
|
|
|
|
|
|||||||
Home equity
|
25,085
|
|
|
26,123
|
|
|
(1,038
|
)
|
(4
|
)%
|
|
|||
Residential real estate
|
21,821
|
|
|
18,657
|
|
|
3,164
|
|
17
|
%
|
|
|||
Automobile
|
16,754
|
|
|
14,419
|
|
|
2,335
|
|
16
|
%
|
|
|||
Credit card
|
7,308
|
|
|
6,357
|
|
|
951
|
|
15
|
%
|
|
|||
Education
|
3,336
|
|
|
3,822
|
|
|
(486
|
)
|
(13
|
)%
|
|
|||
Other consumer
|
4,937
|
|
|
4,585
|
|
|
352
|
|
8
|
%
|
|
|||
Total consumer lending
|
79,241
|
|
|
73,963
|
|
|
5,278
|
|
7
|
%
|
|
|||
Total loans
|
$
|
239,843
|
|
|
$
|
226,245
|
|
|
$
|
13,598
|
|
6
|
%
|
|
|
December 31, 2019
|
|
December 31, 2018
|
|
Ratings (a)
As of December 31, 2019 |
|
|||||||||||||||||||||||||
Dollars in millions
|
Amortized
Cost
|
|
|
Fair
Value
|
|
|
Amortized
Cost
|
|
|
Fair
Value
|
|
|
AAA/
AA
|
|
|
A
|
|
|
BBB
|
|
|
BB and
Lower
|
|
|
No
Rating
|
|
|
||||
U.S. Treasury and government agencies
|
$
|
16,926
|
|
|
$
|
17,348
|
|
|
$
|
18,862
|
|
|
$
|
18,863
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
||||
Agency residential mortgage-backed
|
50,266
|
|
|
50,984
|
|
|
45,153
|
|
|
44,407
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
||||||||
Non-agency residential mortgage-backed
|
1,648
|
|
|
1,954
|
|
|
2,076
|
|
|
2,365
|
|
|
13
|
%
|
|
1
|
%
|
|
2
|
%
|
|
47
|
%
|
|
37
|
%
|
|
||||
Agency commercial mortgage-backed
|
3,153
|
|
|
3,178
|
|
|
2,773
|
|
|
2,720
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
||||||||
Non-agency commercial mortgage-backed (b)
|
3,782
|
|
|
3,806
|
|
|
3,177
|
|
|
3,145
|
|
|
87
|
%
|
|
4
|
%
|
|
|
|
|
|
9
|
%
|
|
||||||
Asset-backed (c)
|
5,096
|
|
|
5,166
|
|
|
5,115
|
|
|
5,155
|
|
|
90
|
%
|
|
2
|
%
|
|
|
|
7
|
%
|
|
1
|
%
|
|
|||||
Other debt (d)
|
4,580
|
|
|
4,771
|
|
|
5,670
|
|
|
5,753
|
|
|
74
|
%
|
|
16
|
%
|
|
7
|
%
|
|
1
|
%
|
|
2
|
%
|
|
||||
Total investment securities (e)
|
$
|
85,451
|
|
|
$
|
87,207
|
|
|
$
|
82,826
|
|
|
$
|
82,408
|
|
|
97
|
%
|
|
1
|
%
|
|
|
|
1
|
%
|
|
1
|
%
|
|
(a)
|
Ratings percentages allocated based on amortized cost.
|
(b)
|
Collateralized primarily by retail properties, office buildings, lodging properties and multifamily housing.
|
(c)
|
Collateralized primarily by corporate debt, government guaranteed education loans and other consumer credit products.
|
(d)
|
Includes state and municipal securities.
|
(e)
|
Includes available for sale and held to maturity securities, which are recorded on our balance sheet at fair value and amortized cost, respectively.
|
December 31, 2019
|
Years
|
|
Agency residential mortgage-backed
|
4.2
|
|
Non-agency residential mortgage-backed
|
6.7
|
|
Agency commercial mortgage-backed
|
4.6
|
|
Non-agency commercial mortgage-backed
|
2.8
|
|
Asset-backed
|
2.0
|
|
|
December 31
|
|
|
December 31
|
|
|
Change
|
|
||||||
Dollars in millions
|
2019
|
|
|
2018
|
|
|
$
|
%
|
|
|||||
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|||
Noninterest-bearing
|
$
|
72,779
|
|
|
$
|
73,960
|
|
|
$
|
(1,181
|
)
|
(2
|
)%
|
|
Interest-bearing
|
|
|
|
|
|
|
|
|||||||
Money market
|
54,115
|
|
|
53,368
|
|
|
747
|
|
1
|
%
|
|
|||
Demand
|
71,692
|
|
|
65,211
|
|
|
6,481
|
|
10
|
%
|
|
|||
Savings
|
68,291
|
|
|
56,793
|
|
|
11,498
|
|
20
|
%
|
|
|||
Time deposits
|
21,663
|
|
|
18,507
|
|
|
3,156
|
|
17
|
%
|
|
|||
Total interest-bearing deposits
|
215,761
|
|
|
193,879
|
|
|
21,882
|
|
11
|
%
|
|
|||
Total deposits
|
288,540
|
|
|
267,839
|
|
|
20,701
|
|
8
|
%
|
|
|||
Borrowed funds
|
|
|
|
|
|
|
|
|||||||
Federal Home Loan Bank (FHLB) borrowings
|
16,341
|
|
|
21,501
|
|
|
(5,160
|
)
|
(24
|
)%
|
|
|||
Bank notes and senior debt
|
29,010
|
|
|
25,018
|
|
|
3,992
|
|
16
|
%
|
|
|||
Subordinated debt
|
6,134
|
|
|
5,895
|
|
|
239
|
|
4
|
%
|
|
|||
Other
|
8,778
|
|
|
5,005
|
|
|
3,773
|
|
75
|
%
|
|
|||
Total borrowed funds
|
60,263
|
|
|
57,419
|
|
|
2,844
|
|
5
|
%
|
|
|||
Total funding sources
|
$
|
348,803
|
|
|
$
|
325,258
|
|
|
$
|
23,545
|
|
7
|
%
|
|
•
|
Retail Banking
|
•
|
Corporate & Institutional Banking
|
•
|
Asset Management Group
|
•
|
BlackRock
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|||||||
Year ended December 31
|
|
|
|
|
Change
|
|
|||||||||
Dollars in millions, except as noted
|
2019
|
|
2018
|
|
$
|
|
%
|
|
|||||||
Income Statement
|
|
|
|
|
|
|
|
|
|||||||
Net interest income
|
$
|
5,520
|
|
|
$
|
5,119
|
|
|
$
|
401
|
|
|
8
|
%
|
|
Noninterest income
|
2,648
|
|
|
2,631
|
|
|
17
|
|
|
1
|
%
|
|
|||
Total revenue
|
8,168
|
|
|
7,750
|
|
|
418
|
|
|
5
|
%
|
|
|||
Provision for credit losses
|
517
|
|
|
373
|
|
|
144
|
|
|
39
|
%
|
|
|||
Noninterest expense
|
6,061
|
|
|
5,978
|
|
|
83
|
|
|
1
|
%
|
|
|||
Pretax earnings
|
1,590
|
|
|
1,399
|
|
|
191
|
|
|
14
|
%
|
|
|||
Income taxes
|
377
|
|
|
335
|
|
|
42
|
|
|
13
|
%
|
|
|||
Earnings
|
$
|
1,213
|
|
|
$
|
1,064
|
|
|
$
|
149
|
|
|
14
|
%
|
|
Average Balance Sheet
|
|
|
|
|
|
|
|
|
|||||||
Loans held for sale
|
$
|
627
|
|
|
$
|
636
|
|
|
$
|
(9
|
)
|
|
(1
|
)%
|
|
Loans
|
|
|
|
|
|
|
|
|
|||||||
Consumer lending
|
|
|
|
|
|
|
|
|
|||||||
Home equity
|
$
|
22,657
|
|
|
$
|
23,991
|
|
|
$
|
(1,334
|
)
|
|
(6
|
)%
|
|
Residential real estate
|
16,196
|
|
|
13,985
|
|
|
2,211
|
|
|
16
|
%
|
|
|||
Automobile
|
15,510
|
|
|
13,827
|
|
|
1,683
|
|
|
12
|
%
|
|
|||
Education
|
3,611
|
|
|
4,135
|
|
|
(524
|
)
|
|
(13
|
)%
|
|
|||
Credit cards
|
6,550
|
|
|
5,838
|
|
|
712
|
|
|
12
|
%
|
|
|||
Other
|
2,244
|
|
|
1,843
|
|
|
401
|
|
|
22
|
%
|
|
|||
Total consumer lending
|
66,768
|
|
|
63,619
|
|
|
3,149
|
|
|
5
|
%
|
|
|||
Commercial and commercial real estate
|
10,410
|
|
|
10,383
|
|
|
27
|
|
|
—
|
|
|
|||
Total loans
|
$
|
77,178
|
|
|
$
|
74,002
|
|
|
$
|
3,176
|
|
|
4
|
%
|
|
Total assets
|
$
|
92,959
|
|
|
$
|
89,739
|
|
|
$
|
3,220
|
|
|
4
|
%
|
|
Deposits
|
|
|
|
|
|
|
|
|
|||||||
Noninterest-bearing demand
|
$
|
31,675
|
|
|
$
|
30,670
|
|
|
$
|
1,005
|
|
|
3
|
%
|
|
Interest-bearing demand
|
42,077
|
|
|
42,042
|
|
|
35
|
|
|
—
|
|
|
|||
Money market
|
25,317
|
|
|
29,798
|
|
|
(4,481
|
)
|
|
(15
|
)%
|
|
|||
Savings
|
56,722
|
|
|
47,019
|
|
|
9,703
|
|
|
21
|
%
|
|
|||
Certificates of deposit
|
12,613
|
|
|
12,007
|
|
|
606
|
|
|
5
|
%
|
|
|||
Total deposits
|
$
|
168,404
|
|
|
$
|
161,536
|
|
|
$
|
6,868
|
|
|
4
|
%
|
|
Performance Ratios
|
|
|
|
|
|
|
|
|
|||||||
Return on average assets
|
1.30
|
%
|
|
1.19
|
%
|
|
|
|
|
|
|||||
Noninterest income to total revenue
|
32
|
%
|
|
34
|
%
|
|
|
|
|
|
|||||
Efficiency
|
74
|
%
|
|
77
|
%
|
|
|
|
|
|
Year ended December 31
|
|
|
|
|
Change
|
|
|||||||||
Dollars in millions, except as noted
|
2019
|
|
2018
|
|
$
|
|
%
|
|
|||||||
Supplemental Noninterest Income Information
|
|
|
|
|
|
|
|
|
|||||||
Consumer services (a)
|
$
|
1,174
|
|
|
$
|
1,128
|
|
|
$
|
46
|
|
|
4
|
%
|
|
Brokerage (b)
|
$
|
356
|
|
|
$
|
350
|
|
|
$
|
6
|
|
|
2
|
%
|
|
Residential mortgage
|
$
|
368
|
|
|
$
|
316
|
|
|
$
|
52
|
|
|
16
|
%
|
|
Service charges on deposits
|
$
|
687
|
|
|
$
|
688
|
|
|
$
|
(1
|
)
|
|
—
|
|
|
Residential Mortgage Information
|
|
|
|
|
|
|
|
|
|||||||
Residential mortgage servicing statistics (in billions, except as noted) (c)
|
|
|
|
|
|
|
|
|
|||||||
Serviced portfolio balance (d)
|
$
|
120
|
|
|
$
|
125
|
|
|
$
|
(5
|
)
|
|
(4
|
)%
|
|
Serviced portfolio acquisitions
|
$
|
12
|
|
|
$
|
12
|
|
|
$
|
—
|
|
|
—
|
|
|
MSR asset value (d)
|
$
|
1.0
|
|
|
$
|
1.3
|
|
|
$
|
(.3
|
)
|
|
(23
|
)%
|
|
MSR capitalization value (in basis points) (d)
|
83
|
|
|
100
|
|
|
(17
|
)
|
|
(17
|
)%
|
|
|||
Servicing income: (in millions)
|
|
|
|
|
|
|
|
|
|
|
|||||
Servicing fees, net (e)
|
$
|
178
|
|
|
$
|
181
|
|
|
$
|
(3
|
)
|
|
(2
|
)%
|
|
Mortgage servicing rights valuation, net of economic hedge
|
$
|
47
|
|
|
$
|
3
|
|
|
$
|
44
|
|
|
*
|
|
|
Residential mortgage loan statistics
|
|
|
|
|
|
|
|
|
|||||||
Loan origination volume (in billions)
|
$
|
11.5
|
|
|
$
|
7.4
|
|
|
$
|
4.1
|
|
|
55
|
%
|
|
Loan sale margin percentage
|
2.41
|
%
|
|
2.41
|
%
|
|
|
|
|
|
|||||
Percentage of originations represented by:
|
|
|
|
|
|
|
|
|
|||||||
Purchase volume (f)
|
47
|
%
|
|
67
|
%
|
|
|
|
|
|
|||||
Refinance volume
|
53
|
%
|
|
33
|
%
|
|
|
|
|
|
|
||||
Other Information (d)
|
|
|
|
|
|
|
|
|
|||||||
Customer-related statistics (average)
|
|
|
|
|
|
|
|
|
|||||||
Non-teller deposit transactions (g)
|
57
|
%
|
|
55
|
%
|
|
|
|
|
|
|||||
Digital consumer customers (h)
|
69
|
%
|
|
66
|
%
|
|
|
|
|
|
|||||
Credit-related statistics
|
|
|
|
|
|
|
|
|
|||||||
Nonperforming assets (i)
|
$
|
1,046
|
|
|
$
|
1,126
|
|
|
$
|
(80
|
)
|
|
(7
|
)%
|
|
Net charge-offs
|
$
|
534
|
|
|
$
|
420
|
|
|
$
|
114
|
|
|
27
|
%
|
|
Other statistics
|
|
|
|
|
|
|
|
|
|
|
|||||
ATMs
|
9,091
|
|
|
9,162
|
|
|
(71
|
)
|
|
(1
|
)%
|
|
|||
Branches (j)
|
2,296
|
|
|
2,372
|
|
|
(76
|
)
|
|
(3
|
)%
|
|
|||
Brokerage account client assets (in billions) (k)
|
$
|
54
|
|
|
$
|
47
|
|
|
$
|
7
|
|
|
15
|
%
|
|
(a)
|
Excludes brokerage noninterest income, which is included in Consumer services on our Consolidated Income Statement.
|
(b)
|
Included in Consumer services on our Consolidated Income Statement.
|
(c)
|
Represents mortgage loan servicing balances for third parties and the related income.
|
(d)
|
Presented as of December 31, except for customer-related statistics, which are averages for the year ended, and net charge-offs, which are for the year ended.
|
(e)
|
Servicing fees net of impact of decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan payments, prepayments, and loans that were paid down or paid off during the period.
|
(f)
|
Mortgages with borrowers as part of residential real estate purchase transactions.
|
(g)
|
Percentage of total consumer and business banking deposit transactions processed at an ATM or through our mobile banking application.
|
(h)
|
Represents consumer checking relationships that process the majority of their transactions through non-teller channels.
|
(i)
|
Includes nonperforming loans of $1.0 billion and $1.1 billion at December 31, 2019 and 2018, respectively.
|
(j)
|
Excludes stand-alone mortgage offices and satellite offices (e.g., drive-ups, electronic branches and retirement centers) that provide limited products and/or services.
|
(k)
|
Includes cash and money market balances.
|
•
|
Average residential mortgages increased primarily as a result of growth in nonconforming residential mortgage loans.
|
•
|
Average auto loans increased primarily due to strong new indirect auto loan volumes, including in our Southeast and expansion markets, as well as growth in direct auto loans.
|
•
|
Average credit card balances increased as we continued to focus on our long-term objective of deepening penetration within our existing customer base as well as new client acquisition.
|
•
|
Average home equity loans decreased as paydowns and payoffs on loans exceeded new originated volume.
|
•
|
Average education loans decreased driven by a decline in the runoff portfolio of government guaranteed education loans.
|
•
|
Approximately 69% of consumer customers used non-teller channels for the majority of their transactions in 2019 compared with 66% in 2018.
|
•
|
Deposit transactions via ATM and mobile channels increased to 57% of total deposit transactions in 2019 from 55% in 2018.
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|||||||
Year ended December 31
|
|
|
|
|
Change
|
|
|||||||||
Dollars in millions, except as noted
|
2019
|
|
2018
|
|
$
|
|
%
|
|
|||||||
Income Statement
|
|
|
|
|
|
|
|
|
|||||||
Net interest income
|
$
|
3,714
|
|
|
$
|
3,637
|
|
|
$
|
77
|
|
|
2
|
%
|
|
Noninterest income
|
2,537
|
|
|
2,406
|
|
|
131
|
|
|
5
|
%
|
|
|||
Total revenue
|
6,251
|
|
|
6,043
|
|
|
208
|
|
|
3
|
%
|
|
|||
Provision for credit losses
|
284
|
|
|
85
|
|
|
199
|
|
|
234
|
%
|
|
|||
Noninterest expense
|
2,813
|
|
|
2,706
|
|
|
107
|
|
|
4
|
%
|
|
|||
Pretax earnings
|
3,154
|
|
|
3,252
|
|
|
(98
|
)
|
|
(3
|
)%
|
|
|||
Income taxes
|
706
|
|
|
744
|
|
|
(38
|
)
|
|
(5
|
)%
|
|
|||
Earnings
|
$
|
2,448
|
|
|
$
|
2,508
|
|
|
$
|
(60
|
)
|
|
(2
|
)%
|
|
Average Balance Sheet
|
|
|
|
|
|
|
|
|
|||||||
Loans held for sale
|
$
|
505
|
|
|
$
|
739
|
|
|
$
|
(234
|
)
|
|
(32
|
)%
|
|
Loans
|
|
|
|
|
|
|
|
|
|||||||
Commercial lending
|
|
|
|
|
|
|
|
|
|||||||
Commercial
|
$
|
112,809
|
|
|
$
|
103,285
|
|
|
$
|
9,524
|
|
|
9
|
%
|
|
Commercial real estate
|
26,340
|
|
|
26,569
|
|
|
(229
|
)
|
|
(1
|
)%
|
|
|||
Equipment lease financing
|
7,255
|
|
|
7,437
|
|
|
(182
|
)
|
|
(2
|
)%
|
|
|||
Total commercial lending
|
146,404
|
|
|
137,291
|
|
|
9,113
|
|
|
7
|
%
|
|
|||
Consumer
|
15
|
|
|
42
|
|
|
(27
|
)
|
|
(64
|
)%
|
|
|||
Total loans
|
$
|
146,419
|
|
|
$
|
137,333
|
|
|
$
|
9,086
|
|
|
7
|
%
|
|
Total assets
|
$
|
164,243
|
|
|
$
|
154,119
|
|
|
$
|
10,124
|
|
|
7
|
%
|
|
Deposits
|
|
|
|
|
|
|
|
|
|||||||
Noninterest-bearing demand
|
$
|
39,141
|
|
|
$
|
44,099
|
|
|
$
|
(4,958
|
)
|
|
(11
|
)%
|
|
Interest-bearing demand
|
19,487
|
|
|
15,114
|
|
|
4,373
|
|
|
29
|
%
|
|
|||
Money market
|
28,091
|
|
|
24,060
|
|
|
4,031
|
|
|
17
|
%
|
|
|||
Other
|
6,676
|
|
|
5,136
|
|
|
1,540
|
|
|
30
|
%
|
|
|||
Total deposits
|
$
|
93,395
|
|
|
$
|
88,409
|
|
|
$
|
4,986
|
|
|
6
|
%
|
|
Performance Ratios
|
|
|
|
|
|
|
|
|
|||||||
Return on average assets
|
1.49
|
%
|
|
1.63
|
%
|
|
|
|
|
|
|||||
Noninterest income to total revenue
|
41
|
%
|
|
40
|
%
|
|
|
|
|
|
|||||
Efficiency
|
45
|
%
|
|
45
|
%
|
|
|
|
|
|
|
||||
Other Information
|
|
|
|
|
|
|
|
|
|||||||
Consolidated revenue from: (a)
|
|
|
|
|
|
|
|
|
|||||||
Treasury Management (b)
|
$
|
1,866
|
|
|
$
|
1,779
|
|
|
$
|
87
|
|
|
5
|
%
|
|
Capital Markets (b)
|
$
|
1,140
|
|
|
$
|
1,088
|
|
|
$
|
52
|
|
|
5
|
%
|
|
Commercial mortgage banking activities:
|
|
|
|
|
|
|
|
|
|||||||
Commercial mortgage loans held for sale (c)
|
$
|
97
|
|
|
$
|
107
|
|
|
$
|
(10
|
)
|
|
(9
|
)%
|
|
Commercial mortgage loan servicing income (d)
|
261
|
|
|
247
|
|
|
14
|
|
|
6
|
%
|
|
|||
Commercial mortgage servicing rights valuation, net of economic hedge (e)
|
19
|
|
|
27
|
|
|
(8
|
)
|
|
(30
|
)%
|
|
|||
Total
|
$
|
377
|
|
|
$
|
381
|
|
|
$
|
(4
|
)
|
|
(1
|
)%
|
|
Commercial mortgage servicing rights asset value (f)
|
$
|
649
|
|
|
$
|
726
|
|
|
$
|
(77
|
)
|
|
(11
|
)%
|
|
Average Loans by C&IB Business (g)
|
|
|
|
|
|
|
|
|
|||||||
Corporate Banking
|
$
|
74,016
|
|
|
$
|
66,503
|
|
|
$
|
7,513
|
|
|
11
|
%
|
|
Real Estate
|
37,149
|
|
|
37,571
|
|
|
(422
|
)
|
|
(1
|
)%
|
|
|||
Business Credit
|
22,586
|
|
|
20,800
|
|
|
1,786
|
|
|
9
|
%
|
|
|||
Commercial Banking
|
7,984
|
|
|
8,109
|
|
|
(125
|
)
|
|
(2
|
)%
|
|
|||
Other
|
4,684
|
|
|
4,350
|
|
|
334
|
|
|
8
|
%
|
|
|||
Total average loans
|
$
|
146,419
|
|
|
$
|
137,333
|
|
|
$
|
9,086
|
|
|
7
|
%
|
|
Credit-related statistics
|
|
|
|
|
|
|
|
|
|||||||
Nonperforming assets (f) (h)
|
$
|
444
|
|
|
$
|
377
|
|
|
$
|
67
|
|
|
18
|
%
|
|
Net charge-offs
|
$
|
105
|
|
|
$
|
10
|
|
|
$
|
95
|
|
|
950
|
%
|
|
(a)
|
See the additional revenue discussion regarding treasury management, capital markets-related products and services, and commercial mortgage banking activities in the Product Revenue section of this Corporate & Institutional Banking section.
|
(b)
|
Amounts reported in net interest income and noninterest income.
|
(c)
|
Represents other noninterest income for valuations on commercial mortgage loans held for sale and related commitments, derivative valuations, originations fees, gains on sale of loans held for sale and net interest income on loans held for sale.
|
(d)
|
Represents net interest income and noninterest income (primarily in corporate service fees) from loan servicing net of reduction in commercial mortgage servicing rights due to amortization expense and payoffs. Commercial mortgage servicing rights valuation, net of economic hedge is shown separately.
|
(e)
|
Amounts are reported in corporate service fees.
|
(f)
|
As of December 31.
|
(g)
|
As a result of our first quarter 2019 C&IB business realignment, average loans previously reported as Equipment Finance were reclassified to other C&IB businesses for all periods presented.
|
(h)
|
Primarily nonperforming loans of $.4 billion and $.3 billion at December 31, 2019 and 2018, respectively.
|
•
|
Corporate Banking provides lending, treasury management and capital markets-related products and services to mid-sized and large corporations, and government and not-for-profit entities. Average loans for this business grew reflecting strong production in asset-backed financing as well as increased lending to large and mid-sized corporate clients.
|
•
|
PNC Business Credit provides asset-based lending. The loan portfolio is relatively high yielding, with acceptable risk as the loans are mainly secured by short-term assets. Average loans for this business increased primarily due to net new originations and higher utilization.
|
•
|
PNC Real Estate provides banking, financing and servicing solutions for commercial real estate clients across the country. Average loans for this business decreased slightly primarily driven by project loan payoffs, partially offset by higher commercial mortgage balances.
|
•
|
Commercial Banking provides lending, treasury management and capital markets-related products and services to smaller corporations and businesses. Average loans for this business were relatively unchanged.
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|||||||
Year ended December 31
|
|
|
|
|
Change
|
|
|||||||||
Dollars in millions, except as noted
|
2019
|
|
2018
|
|
$
|
|
%
|
|
|||||||
Income Statement
|
|
|
|
|
|
|
|
|
|||||||
Net interest income
|
$
|
288
|
|
|
$
|
287
|
|
|
$
|
1
|
|
|
—
|
|
|
Noninterest income
|
991
|
|
|
892
|
|
|
99
|
|
|
11
|
%
|
|
|||
Total revenue
|
1,279
|
|
|
1,179
|
|
|
100
|
|
|
8
|
%
|
|
|||
Provision for credit losses
|
(1
|
)
|
|
2
|
|
|
(3
|
)
|
|
(150
|
)%
|
|
|||
Noninterest expense
|
939
|
|
|
913
|
|
|
26
|
|
|
3
|
%
|
|
|||
Pretax earnings
|
341
|
|
|
264
|
|
|
77
|
|
|
29
|
%
|
|
|||
Income taxes
|
79
|
|
|
62
|
|
|
17
|
|
|
27
|
%
|
|
|||
Earnings
|
$
|
262
|
|
|
$
|
202
|
|
|
$
|
60
|
|
|
30
|
%
|
|
Average Balance Sheet
|
|
|
|
|
|
|
|
|
|||||||
Loans
|
|
|
|
|
|
|
|
|
|||||||
Consumer lending
|
|
|
|
|
|
|
|
|
|||||||
Residential real estate
|
$
|
1,923
|
|
|
$
|
1,588
|
|
|
$
|
335
|
|
|
21
|
%
|
|
Other
|
4,232
|
|
|
4,656
|
|
|
(424
|
)
|
|
(9
|
)%
|
|
|||
Total consumer lending
|
6,155
|
|
|
6,244
|
|
|
(89
|
)
|
|
(1
|
)%
|
|
|||
Commercial and commercial real estate
|
759
|
|
|
727
|
|
|
32
|
|
|
4
|
%
|
|
|||
Total loans
|
$
|
6,914
|
|
|
$
|
6,971
|
|
|
$
|
(57
|
)
|
|
(1
|
)%
|
|
Total assets
|
$
|
7,360
|
|
|
$
|
7,423
|
|
|
$
|
(63
|
)
|
|
(1
|
)%
|
|
Deposits
|
|
|
|
|
|
|
|
|
|||||||
Noninterest-bearing demand
|
$
|
1,360
|
|
|
$
|
1,458
|
|
|
$
|
(98
|
)
|
|
(7
|
)%
|
|
Interest-bearing demand
|
4,060
|
|
|
3,323
|
|
|
737
|
|
|
22
|
%
|
|
|||
Money market
|
1,832
|
|
|
2,253
|
|
|
(421
|
)
|
|
(19
|
)%
|
|
|||
Savings
|
6,216
|
|
|
4,890
|
|
|
1,326
|
|
|
27
|
%
|
|
|||
Other
|
822
|
|
|
466
|
|
|
356
|
|
|
76
|
%
|
|
|||
Total deposits
|
$
|
14,290
|
|
|
$
|
12,390
|
|
|
$
|
1,900
|
|
|
15
|
%
|
|
Performance Ratios
|
|
|
|
|
|
|
|
|
|||||||
Return on average assets
|
3.56
|
%
|
|
2.72
|
%
|
|
|
|
|
|
|||||
Noninterest income to total revenue
|
77
|
%
|
|
76
|
%
|
|
|
|
|
|
|||||
Efficiency
|
73
|
%
|
|
77
|
%
|
|
|
|
|
|
|
||||
Supplemental Noninterest Income Information
|
|
|
|
|
|
|
|
|
|||||||
Asset management fees
|
$
|
862
|
|
|
$
|
883
|
|
|
$
|
(21
|
)
|
|
(2
|
)%
|
|
Other Information
|
|
|
|
|
|
|
|
|
|||||||
Nonperforming assets (a) (b)
|
$
|
39
|
|
|
$
|
46
|
|
|
$
|
(7
|
)
|
|
(15
|
)%
|
|
Net charge-offs
|
$
|
5
|
|
|
$
|
9
|
|
|
$
|
(4
|
)
|
|
(44
|
)%
|
|
Client Assets Under Administration (in billions) (a) (c)
|
|
|
|
|
|
|
|
|
|||||||
Discretionary client assets under management
|
$
|
154
|
|
|
$
|
148
|
|
|
$
|
6
|
|
|
4
|
%
|
|
Nondiscretionary client assets under administration
|
143
|
|
|
124
|
|
|
19
|
|
|
15
|
%
|
|
|||
Total
|
$
|
297
|
|
|
$
|
272
|
|
|
$
|
25
|
|
|
9
|
%
|
|
Discretionary client assets under management
|
|
|
|
|
|
|
|
|
|||||||
Personal
|
$
|
99
|
|
|
$
|
87
|
|
|
$
|
12
|
|
|
14
|
%
|
|
Institutional
|
55
|
|
|
61
|
|
|
(6
|
)
|
|
(10
|
)%
|
|
|||
Total
|
$
|
154
|
|
|
$
|
148
|
|
|
$
|
6
|
|
|
4
|
%
|
|
(a)
|
As of December 31.
|
(b)
|
Includes nonperforming loans of $38 million at December 31, 2019 and $45 million at December 31, 2018.
|
(c)
|
Excludes brokerage account client assets.
|
Year ended December 31
|
|
|
|
|
||||
Dollars in millions
|
2019
|
|
|
2018
|
|
|
||
Business segment earnings (a)
|
$
|
838
|
|
|
$
|
781
|
|
|
PNC’s economic interest in BlackRock (b)
|
22
|
%
|
|
22
|
%
|
|
(a)
|
Represents our share of BlackRock’s reported GAAP earnings net of income taxes on those earnings incurred by us.
|
(b)
|
At December 31.
|
In billions
|
December 31, 2019
|
|
|
December 31, 2018
|
|
|
||
Carrying value of our investment in BlackRock (c)
|
$
|
8.7
|
|
|
$
|
8.2
|
|
|
Market value of our investment in BlackRock (d)
|
$
|
17.5
|
|
|
$
|
13.7
|
|
|
(c)
|
We account for our investment in BlackRock under the equity method of accounting, exclusive of a related deferred tax liability of $1.8 billion at December 31, 2019 and $1.7 billion at December 31, 2018. Our voting interest in BlackRock common stock was approximately 22% at December 31, 2019.
|
(d)
|
Does not include liquidity discount.
|
•
|
Audit Committee: monitors the integrity of our consolidated financial statements; monitors internal control over financial reporting; monitors compliance with our code of ethics; evaluates and monitors the qualifications and independence of our independent auditors; and evaluates and monitors the performance of our Internal Audit function and our independent auditors.
|
•
|
Nominating and Governance Committee: oversees the implementation of sound corporate governance principles and practices while promoting our best interests and those of our shareholders
|
•
|
Personnel and Compensation Committee: oversees the compensation of our executive officers and other specified responsibilities related to personnel and compensation matters affecting us. The committee is also responsible for evaluating the relationship between risk-taking activities and incentive compensation plans.
|
•
|
Risk Committee: oversees enterprise-wide risk structure and the processes established to identify, measure, monitor and manage the organization’s risks and evaluates and approves our risk governance framework. The Risk Committee has formed a Technology Subcommittee and a Compliance Subcommittee to facilitate Board-level oversight of risk management in these areas.
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
||||||||||
Dollars in millions
|
Amount
|
|
% of Total
|
|
|
Amount
|
|
% of Total
|
|
||||||
Commercial
|
|
|
|
|
|
|
|
|
|
||||||
Manufacturing
|
$
|
21,540
|
|
|
17
|
%
|
|
|
$
|
21,207
|
|
|
18
|
%
|
|
Retail/wholesale trade
|
21,565
|
|
|
17
|
|
|
|
20,850
|
|
|
18
|
|
|
||
Service providers
|
16,112
|
|
|
13
|
|
|
|
14,869
|
|
|
13
|
|
|
||
Real estate related (a)
|
12,346
|
|
|
10
|
|
|
|
12,312
|
|
|
11
|
|
|
||
Financial services
|
11,318
|
|
|
9
|
|
|
|
9,500
|
|
|
8
|
|
|
||
Health care
|
8,035
|
|
|
6
|
|
|
|
8,886
|
|
|
8
|
|
|
||
Transportation and warehousing
|
7,474
|
|
|
6
|
|
|
|
5,781
|
|
|
5
|
|
|
||
Other industries
|
26,947
|
|
|
22
|
|
|
|
23,429
|
|
|
19
|
|
|
||
Total commercial loans
|
$
|
125,337
|
|
|
100
|
%
|
|
|
$
|
116,834
|
|
|
100
|
%
|
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
||||||||||
Dollars in millions
|
Amount
|
|
% of Total
|
|
|
Amount
|
|
% of Total
|
|
||||||
Geography
|
|
|
|
|
|
|
|
|
|
||||||
California
|
$
|
4,393
|
|
|
16
|
%
|
|
|
$
|
4,154
|
|
|
15
|
%
|
|
Florida
|
2,557
|
|
|
9
|
|
|
|
2,157
|
|
|
8
|
|
|
||
Maryland
|
1,889
|
|
|
7
|
|
|
|
1,966
|
|
|
7
|
|
|
||
Texas
|
1,717
|
|
|
6
|
|
|
|
1,531
|
|
|
5
|
|
|
||
Virginia
|
1,547
|
|
|
6
|
|
|
|
1,682
|
|
|
6
|
|
|
||
Pennsylvania
|
1,310
|
|
|
4
|
|
|
|
1,214
|
|
|
4
|
|
|
||
Ohio
|
1,307
|
|
|
4
|
|
|
|
1,053
|
|
|
4
|
|
|
||
New Jersey
|
1,106
|
|
|
4
|
|
|
|
884
|
|
|
3
|
|
|
||
North Carolina
|
1,015
|
|
|
4
|
|
|
|
915
|
|
|
3
|
|
|
||
Illinois
|
1,001
|
|
|
4
|
|
|
|
1,368
|
|
|
5
|
|
|
||
Other
|
10,268
|
|
|
36
|
|
|
|
11,216
|
|
|
40
|
|
|
||
Total commercial real estate loans
|
$
|
28,110
|
|
|
100
|
%
|
|
|
$
|
28,140
|
|
|
100
|
%
|
|
Property Type
|
|
|
|
|
|
|
|
|
|
||||||
Multifamily
|
$
|
9,003
|
|
|
32
|
%
|
|
|
$
|
8,770
|
|
|
31
|
%
|
|
Office
|
7,641
|
|
|
27
|
|
|
|
7,279
|
|
|
26
|
|
|
||
Retail
|
3,702
|
|
|
13
|
|
|
|
4,065
|
|
|
14
|
|
|
||
Industrial/Warehouse
|
2,003
|
|
|
7
|
|
|
|
1,678
|
|
|
6
|
|
|
||
Hotel/Motel
|
1,813
|
|
|
7
|
|
|
|
1,686
|
|
|
6
|
|
|
||
Senior Housing
|
1,123
|
|
|
4
|
|
|
|
1,092
|
|
|
4
|
|
|
||
Mixed Use
|
943
|
|
|
3
|
|
|
|
933
|
|
|
3
|
|
|
||
Other
|
1,882
|
|
|
7
|
|
|
|
2,637
|
|
|
10
|
|
|
||
Total commercial real estate loans
|
$
|
28,110
|
|
|
100
|
%
|
|
|
$
|
28,140
|
|
|
100
|
%
|
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
||||||||||
Dollars in millions
|
Amount
|
|
% of Total
|
|
|
Amount
|
|
% of Total
|
|
||||||
Geography
|
|
|
|
|
|
|
|
|
|
||||||
Pennsylvania
|
$
|
5,812
|
|
|
23
|
%
|
|
|
$
|
6,160
|
|
|
24
|
%
|
|
New Jersey
|
3,728
|
|
|
15
|
|
|
|
3,935
|
|
|
15
|
|
|
||
Ohio
|
2,899
|
|
|
12
|
|
|
|
3,095
|
|
|
12
|
|
|
||
Illinois
|
1,544
|
|
|
6
|
|
|
|
1,634
|
|
|
6
|
|
|
||
Maryland
|
1,420
|
|
|
6
|
|
|
|
1,481
|
|
|
6
|
|
|
||
Michigan
|
1,371
|
|
|
5
|
|
|
|
1,340
|
|
|
5
|
|
|
||
Florida
|
1,340
|
|
|
5
|
|
|
|
1,227
|
|
|
5
|
|
|
||
North Carolina
|
1,092
|
|
|
4
|
|
|
|
1,161
|
|
|
4
|
|
|
||
Kentucky
|
990
|
|
|
4
|
|
|
|
1,040
|
|
|
4
|
|
|
||
Indiana
|
820
|
|
|
3
|
|
|
|
845
|
|
|
3
|
|
|
||
Other
|
4,069
|
|
|
17
|
|
|
|
4,205
|
|
|
16
|
|
|
||
Total home equity loans
|
$
|
25,085
|
|
|
100
|
%
|
|
|
$
|
26,123
|
|
|
100
|
%
|
|
Lien type
|
|
|
|
|
|
|
|
|
|
||||||
1st lien
|
|
|
59
|
%
|
|
|
|
|
58
|
%
|
|
||||
2nd lien
|
|
|
41
|
|
|
|
|
|
42
|
|
|
||||
Total
|
|
|
100
|
%
|
|
|
|
|
100
|
%
|
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
||||||||||
Dollars in millions
|
Amount
|
|
% of Total
|
|
|
Amount
|
|
% of Total
|
|
||||||
Geography
|
|
|
|
|
|
|
|
|
|
||||||
California
|
$
|
6,800
|
|
|
31
|
%
|
|
|
$
|
4,666
|
|
|
25
|
%
|
|
New Jersey
|
1,779
|
|
|
8
|
|
|
|
1,649
|
|
|
9
|
|
|
||
Florida
|
1,580
|
|
|
7
|
|
|
|
1,544
|
|
|
8
|
|
|
||
Illinois
|
1,118
|
|
|
5
|
|
|
|
1,161
|
|
|
6
|
|
|
||
Pennsylvania
|
1,113
|
|
|
5
|
|
|
|
1,031
|
|
|
6
|
|
|
||
New York
|
1,008
|
|
|
5
|
|
|
|
956
|
|
|
5
|
|
|
||
Maryland
|
923
|
|
|
4
|
|
|
|
913
|
|
|
5
|
|
|
||
North Carolina
|
877
|
|
|
4
|
|
|
|
854
|
|
|
5
|
|
|
||
Virginia
|
868
|
|
|
4
|
|
|
|
825
|
|
|
4
|
|
|
||
Ohio
|
704
|
|
|
3
|
|
|
|
682
|
|
|
4
|
|
|
||
Other
|
5,051
|
|
|
24
|
|
|
|
4,376
|
|
|
23
|
|
|
||
Total residential real estate loans
|
$
|
21,821
|
|
|
100
|
%
|
|
|
$
|
18,657
|
|
|
100
|
%
|
|
|
|
December 31 2019
|
|
|
December 31
2018 |
|
|
Change
|
|
||||||
Dollars in millions
|
|
$
|
|
|
%
|
|
|||||||||
Nonperforming loans
|
|
|
|
|
|
|
|
|
|
||||||
Commercial lending
|
|
$
|
501
|
|
|
$
|
432
|
|
|
$
|
69
|
|
|
16%
|
|
Consumer lending (a)
|
|
1,134
|
|
|
1,262
|
|
|
(128
|
)
|
|
(10)%
|
|
|||
Total nonperforming loans
|
|
1,635
|
|
|
1,694
|
|
|
(59
|
)
|
|
(3)%
|
|
|||
OREO and foreclosed assets
|
|
117
|
|
|
114
|
|
|
3
|
|
|
3%
|
|
|||
Total nonperforming assets
|
|
$
|
1,752
|
|
|
$
|
1,808
|
|
|
$
|
(56
|
)
|
|
(3)%
|
|
TDRs included in nonperforming loans
|
|
$
|
843
|
|
|
$
|
863
|
|
|
$
|
(20
|
)
|
|
(2)%
|
|
Percentage of total nonperforming loans
|
|
52
|
%
|
|
51
|
%
|
|
|
|
|
|
||||
Nonperforming loans to total loans
|
|
.68
|
%
|
|
.75
|
%
|
|
|
|
|
|
||||
Nonperforming assets to total loans, OREO and foreclosed assets
|
|
.73
|
%
|
|
.80
|
%
|
|
|
|
|
|
||||
Nonperforming assets to total assets
|
|
.43
|
%
|
|
.47
|
%
|
|
|
|
|
|
||||
Allowance for loan and lease losses to total nonperforming loans
|
|
168
|
%
|
|
155
|
%
|
|
|
|
|
|
(a)
|
Excludes most unsecured consumer loans and lines of credit, which are charged off after 120 to 180 days past due and are not placed on nonperforming status.
|
In millions
|
|
2019
|
|
|
2018
|
|
|
||
January 1
|
|
$
|
1,808
|
|
|
$
|
2,035
|
|
|
New nonperforming assets
|
|
1,342
|
|
|
1,110
|
|
|
||
Charge-offs and valuation adjustments
|
|
(664
|
)
|
|
(556
|
)
|
|
||
Principal activity, including paydowns and payoffs
|
|
(472
|
)
|
|
(476
|
)
|
|
||
Asset sales and transfers to loans held for sale
|
|
(95
|
)
|
|
(139
|
)
|
|
||
Returned to performing status
|
|
(167
|
)
|
|
(166
|
)
|
|
||
December 31
|
|
$
|
1,752
|
|
|
$
|
1,808
|
|
|
|
|
Amount
|
|
|
|
|
|
Percentage of Total Loans Outstanding
|
|
|||||||||||||
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
|
Change
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
|
|||||||
Dollars in millions
|
|
|
|
$
|
|
|
%
|
|
|
|
|
|||||||||||
Early stage loan delinquencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Accruing loans past due 30 to 59 days
|
|
$
|
661
|
|
|
$
|
585
|
|
|
$
|
76
|
|
|
13
|
%
|
|
.28
|
%
|
|
.26
|
%
|
|
Accruing loans past due 60 to 89 days
|
|
258
|
|
|
271
|
|
|
(13
|
)
|
|
(5
|
)%
|
|
.11
|
%
|
|
.12
|
%
|
|
|||
Total
|
|
919
|
|
|
856
|
|
|
63
|
|
|
7
|
%
|
|
.38
|
%
|
|
.38
|
%
|
|
|||
Late stage loan delinquencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Accruing loans past due 90 days or more
|
|
585
|
|
|
629
|
|
|
(44
|
)
|
|
(7
|
)%
|
|
.24
|
%
|
|
.28
|
%
|
|
|||
Total
|
|
$
|
1,504
|
|
|
$
|
1,485
|
|
|
$
|
19
|
|
|
1
|
%
|
|
.63
|
%
|
|
.66
|
%
|
|
(a)
|
Past due loan amounts include government insured or guaranteed loans of $.6 billion at December 31, 2019 and $.7 billion at December 31, 2018.
|
|
|
December 31 2019
|
|
|
December 31
2018 |
|
|
Change
|
|
||||||
In millions
|
|
$
|
|
%
|
|
||||||||||
Total commercial lending
|
|
$
|
361
|
|
|
$
|
409
|
|
|
$
|
(48
|
)
|
|
(12)%
|
|
Total consumer lending
|
|
1,303
|
|
|
1,442
|
|
|
(139
|
)
|
|
(10)%
|
|
|||
Total TDRs
|
|
$
|
1,664
|
|
|
$
|
1,851
|
|
|
$
|
(187
|
)
|
|
(10)%
|
|
Nonperforming
|
|
$
|
843
|
|
|
$
|
863
|
|
|
$
|
(20
|
)
|
|
(2)%
|
|
Accruing (b)
|
|
821
|
|
|
988
|
|
|
(167
|
)
|
|
(17)%
|
|
|||
Total TDRs
|
|
$
|
1,664
|
|
|
$
|
1,851
|
|
|
$
|
(187
|
)
|
|
(10)%
|
|
(a)
|
Amounts in table represent recorded investment, which includes the unpaid principal balance plus net accounting adjustments, less any charge-offs. Recorded investment does not include any associated valuation allowance.
|
(b)
|
Accruing loans include consumer credit card loans and loans that have demonstrated a period of at least six months of performance under the restructured terms and are excluded from nonperforming loans.
|
•
|
Industry concentrations and conditions,
|
•
|
Changes in market conditions,
|
•
|
Recent credit quality trends,
|
•
|
Recent loss experience in particular portfolios, including specific and unique events,
|
•
|
Recent macro-economic factors,
|
•
|
Model imprecision,
|
•
|
Changes in lending policies and procedures,
|
•
|
Timing of available information, including the performance of first lien positions, and
|
•
|
Limitations of available historical data.
|
Dollars in millions
|
|
2019
|
|
2018
|
|
||||
January 1
|
|
$
|
2,629
|
|
|
$
|
2,611
|
|
|
Total net charge-offs
|
|
(642
|
)
|
|
(420
|
)
|
|
||
Provision for credit losses
|
|
773
|
|
|
408
|
|
|
||
Net decrease / (increase) in allowance for unfunded loan commitments and letters of credit
|
|
(33
|
)
|
|
12
|
|
|
||
Other
|
|
15
|
|
|
18
|
|
|
||
December 31
|
|
$
|
2,742
|
|
|
$
|
2,629
|
|
|
Net charge-offs to average loans (for the year ended)
|
|
.27
|
%
|
|
.19
|
%
|
|
||
ALLL to total loans
|
|
1.14
|
%
|
|
1.16
|
%
|
|
||
Commercial lending net charge-offs
|
|
$
|
(138
|
)
|
|
$
|
(25
|
)
|
|
Consumer lending net charge-offs
|
|
(504
|
)
|
|
(395
|
)
|
|
||
Total net charge-offs
|
|
$
|
(642
|
)
|
|
$
|
(420
|
)
|
|
Net charge-offs to average loans (for the year ended)
|
|
|
|
|
|
||||
Commercial lending
|
|
.09
|
%
|
|
.02
|
%
|
|
||
Consumer lending
|
|
.67
|
%
|
|
.54
|
%
|
|
Year ended December 31
Dollars in millions
|
|
Gross Charge-offs
|
|
|
Recoveries
|
|
|
Net Charge-offs / (Recoveries)
|
|
|
Percent of Average Loans
|
|
|
|||
2019
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial
|
|
$
|
183
|
|
|
$
|
59
|
|
|
$
|
124
|
|
|
.10
|
%
|
|
Commercial real estate
|
|
18
|
|
|
11
|
|
|
7
|
|
|
.02
|
%
|
|
|||
Equipment lease financing
|
|
15
|
|
|
8
|
|
|
7
|
|
|
.10
|
%
|
|
|||
Home equity
|
|
68
|
|
|
74
|
|
|
(6
|
)
|
|
(.02
|
)%
|
|
|||
Residential real estate
|
|
9
|
|
|
14
|
|
|
(5
|
)
|
|
(.02
|
)%
|
|
|||
Automobile
|
|
261
|
|
|
114
|
|
|
147
|
|
|
.95
|
%
|
|
|||
Credit card
|
|
263
|
|
|
27
|
|
|
236
|
|
|
3.60
|
%
|
|
|||
Education
|
|
26
|
|
|
8
|
|
|
18
|
|
|
.50
|
%
|
|
|||
Other consumer
|
|
131
|
|
|
17
|
|
|
114
|
|
|
2.41
|
%
|
|
|||
Total
|
|
$
|
974
|
|
|
$
|
332
|
|
|
$
|
642
|
|
|
.27
|
%
|
|
2018
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial
|
|
$
|
108
|
|
|
$
|
67
|
|
|
$
|
41
|
|
|
.04
|
%
|
|
Commercial real estate
|
|
8
|
|
|
24
|
|
|
(16
|
)
|
|
(.06
|
)%
|
|
|||
Equipment lease financing
|
|
8
|
|
|
8
|
|
|
—
|
|
|
|
|
|
|||
Home equity
|
|
110
|
|
|
98
|
|
|
12
|
|
|
.04
|
%
|
|
|||
Residential real estate
|
|
6
|
|
|
21
|
|
|
(15
|
)
|
|
(.08
|
)%
|
|
|||
Automobile
|
|
171
|
|
|
77
|
|
|
94
|
|
|
.68
|
%
|
|
|||
Credit card
|
|
217
|
|
|
24
|
|
|
193
|
|
|
3.30
|
%
|
|
|||
Education
|
|
31
|
|
|
8
|
|
|
23
|
|
|
.56
|
%
|
|
|||
Other consumer
|
|
105
|
|
|
17
|
|
|
88
|
|
|
1.98
|
%
|
|
|||
Total
|
|
$
|
764
|
|
|
$
|
344
|
|
|
$
|
420
|
|
|
.19
|
%
|
|
In billions
|
2019
|
|
|
|
January 1
|
$
|
30.9
|
|
|
Issuances
|
9.7
|
|
|
|
Calls and maturities
|
(6.3
|
)
|
|
|
Other
|
.8
|
|
|
|
December 31
|
$
|
35.1
|
|
|
Issuance Date
|
Amount
|
Description of Issuance
|
October 22, 2019
|
$750 million
|
Subordinated notes with a maturity date of October 22, 2029. Interest is payable semi-annually at a fixed rate of 2.70% per annum, on April 22 and October 22 of each year, beginning April 22, 2020.
|
December 9, 2019
|
$750 million
|
Senior floating rate notes with a maturity date of December 9, 2022. Redeemable in whole, but not in part, on or after December 9, 2021, and in whole or in part on or after November 9, 2022. Interest is payable quarterly, at the 3-month LIBOR rate plus 43 basis points, on March 9, June 9, September 9 and December 9 of each year, beginning March 9, 2020.
|
December 9, 2019
|
$650 million
|
Senior fixed-to-floating rate notes with a maturity date of December 9, 2022. Redeemable in whole, but not in part, on December 9, 2021, and in whole or in part on or after November 9, 2022. From the issue date of the notes to, but excluding, December 9, 2021, interest is payable semi-annually at a fixed rate of 2.028% per annum on December 9 and June 9 of each year, beginning June 9, 2020. Beginning on December 9, 2021, interest is payable quarterly, at the 3-month LIBOR rate, reset quarterly, plus 42 basis points, on March 9, June 9, September 9, and December 9, beginning on March 9, 2022.
|
•
|
Bank-level capital needs;
|
•
|
Laws and regulations;
|
•
|
Corporate policies;
|
•
|
Contractual restrictions; and
|
•
|
Other factors.
|
|
|
|
Payment Due By Period
|
|
||||||||||||||||
December 31, 2019 – in millions
|
Total
|
|
|
Less than
one year
|
|
|
One to
three years
|
|
|
Four to
five years
|
|
|
After five
years
|
|
|
|||||
Remaining contractual maturities of time deposits
|
$
|
21,663
|
|
|
$
|
18,541
|
|
|
$
|
2,211
|
|
|
$
|
598
|
|
|
$
|
313
|
|
|
Borrowed funds (a)
|
60,263
|
|
|
27,079
|
|
|
16,396
|
|
|
5,368
|
|
|
11,420
|
|
|
|||||
Minimum annual rentals on noncancellable operating leases
|
2,425
|
|
|
355
|
|
|
646
|
|
|
501
|
|
|
923
|
|
|
|||||
Nonqualified pension and postretirement benefits
|
453
|
|
|
54
|
|
|
102
|
|
|
94
|
|
|
203
|
|
|
|||||
Purchase obligations (b)
|
973
|
|
|
511
|
|
|
298
|
|
|
129
|
|
|
35
|
|
|
|||||
Total contractual cash obligations
|
$
|
85,777
|
|
|
$
|
46,540
|
|
|
$
|
19,653
|
|
|
$
|
6,690
|
|
|
$
|
12,894
|
|
|
(a)
|
Includes basis adjustment relating to accounting hedges and purchase accounting adjustments.
|
(b)
|
Includes purchase obligations for goods and services covered by noncancellable contracts and contracts including cancellation fees.
|
|
|
|
Amount Of Commitment Expiration By Period
|
|
||||||||||||||||
December 31, 2019 – in millions
|
Total Amounts Committed
|
|
|
Less than one
year
|
|
|
One to
three years
|
|
|
Four to
five years
|
|
|
After
five years
|
|
|
|||||
Commitments to extend credit (b)
|
$
|
185,589
|
|
|
$
|
86,126
|
|
|
$
|
44,444
|
|
|
$
|
54,244
|
|
|
$
|
775
|
|
|
Net outstanding standby letters of credit (c)
|
9,843
|
|
|
4,249
|
|
|
3,804
|
|
|
1,786
|
|
|
4
|
|
|
|||||
Reinsurance agreements (d)
|
1,393
|
|
|
1
|
|
|
4
|
|
|
6
|
|
|
1,382
|
|
|
|||||
Standby bond purchase agreements
|
1,295
|
|
|
425
|
|
|
621
|
|
|
249
|
|
|
|
|
||||||
Other commitments (e)
|
1,498
|
|
|
1,098
|
|
|
301
|
|
|
80
|
|
|
19
|
|
|
|||||
Total commitments
|
$
|
199,618
|
|
|
$
|
91,899
|
|
|
$
|
49,174
|
|
|
$
|
56,365
|
|
|
$
|
2,180
|
|
|
(a)
|
Other commitments are funding commitments that could potentially require performance in the event of demands by third parties or contingent events. Loan commitments are reported net of syndications, assignments and participations.
|
(b)
|
Commitments to extend credit, or net unfunded loan commitments, represent arrangements to lend funds or provide liquidity subject to specified contractual conditions.
|
(c)
|
Includes $4.1 billion of standby letters of credit that support remarketing programs for customers’ variable rate demand notes.
|
(d)
|
Reinsurance agreements are with third-party insurers related to insurance sold to our customers. Balances represent estimates based on availability of financial information.
|
(e)
|
Includes other commitments of $.5 billion that were not on our Consolidated Balance Sheet. The remaining $1.0 billion of other commitments were included in Other liabilities on our Consolidated Balance Sheet.
|
Dollars in millions
|
Basel III
December 31, 2019 (a)
|
Pro Forma
Basel III (Non-GAAP) (estimated)
December 31, 2019 (b)
|
||||
Common equity Tier 1 capital
|
|
|
||||
Common stock plus related surplus, net of treasury stock
|
$
|
2,307
|
|
$
|
2,307
|
|
Retained earnings
|
42,215
|
|
42,215
|
|
||
Accumulated other comprehensive income (loss) for securities currently, and those transferred from, available for sale
|
1,067
|
|
|
|||
Accumulated other comprehensive income (loss) for pension and other postretirement plans
|
(408
|
)
|
|
|||
Goodwill, net of associated deferred tax liabilities
|
(9,030
|
)
|
(9,030
|
)
|
||
Other disallowed intangibles, net of deferred tax liabilities
|
(224
|
)
|
(224
|
)
|
||
Other adjustments/(deductions)
|
(173
|
)
|
(168
|
)
|
||
Total common equity Tier 1 capital before threshold deductions
|
35,754
|
|
35,100
|
|
||
Total threshold deductions
|
(3,276
|
)
|
|
|||
Common equity Tier 1 capital
|
$
|
32,478
|
|
$
|
35,100
|
|
Additional Tier 1 capital
|
|
|
||||
Preferred stock plus related surplus
|
3,993
|
|
3,993
|
|
||
Other adjustments/(deductions)
|
(165
|
)
|
|
|||
Tier 1 capital
|
$
|
36,306
|
|
$
|
39,093
|
|
Additional Tier 2 capital
|
|
|
||||
Qualifying subordinated debt
|
3,905
|
|
4,396
|
|
||
Trust preferred capital securities
|
60
|
|
60
|
|
||
Eligible credit reserves includable in Tier 2 capital
|
3,060
|
|
3,060
|
|
||
Total Basel III capital
|
$
|
43,331
|
|
$
|
46,609
|
|
Risk-weighted assets
|
|
|
||||
Basel III standardized approach risk-weighted assets (c)
|
$
|
340,799
|
|
$
|
347,805
|
|
Basel III advanced approaches risk-weighted assets (d)
|
$
|
318,722
|
|
|
||
Average quarterly adjusted total assets
|
$
|
397,446
|
|
$
|
400,887
|
|
Supplementary leverage exposure (e)
|
$
|
478,438
|
|
$
|
482,161
|
|
Basel III risk-based capital and leverage ratios (f)
|
|
|
||||
Common equity Tier 1
|
9.5
|
%
|
10.1
|
%
|
||
Tier 1
|
10.7
|
%
|
11.2
|
%
|
||
Total (g)
|
12.7
|
%
|
13.4
|
%
|
||
Leverage (h)
|
9.1
|
%
|
9.8
|
%
|
||
Supplementary leverage ratio (i)
|
7.6
|
%
|
8.1
|
%
|
(a)
|
The Basel III Common equity Tier 1 capital, Tier 1 risk-based capital, Leverage and Supplementary ratios as of December 31, 2019 reflect the full phase-in of all Basel III adjustments to these metrics applicable to PNC.
|
(b)
|
Pro forma Basel III ratios are calculated as if the 2019 Tailoring Rules, and PNC's election to opt-out of the inclusion of certain elements of accumulated other comprehensive income in regulatory capital, had been in effect at December 31, 2019. We believe that the pro forma Basel III ratios are a useful tool to assess the impact to our capital position after adoption of the 2019 Tailoring Rules.
|
(c)
|
Includes credit and market risk-weighted assets.
|
(d)
|
Basel III advanced approaches risk-weighted assets are calculated based on the Basel III advanced approaches rules, and include credit, market and operational risk-weighted assets.
|
(e)
|
Supplementary leverage exposure is the sum of Adjusted average assets and certain off-balance sheet exposures including undrawn credit commitments and derivative potential future exposures.
|
(f)
|
For comparative purposes only, the advanced approaches Basel III Common equity Tier 1, Tier 1 risk-based and Total risk-based ratios for December 31, 2019 were 10.2%, 11.4% and 12.7%, respectively.
|
(g)
|
The Basel III Total risk-based capital ratio includes $60 million of nonqualifying trust preferred capital securities that are subject to a phase-out period that runs through 2021.
|
(h)
|
Leverage ratio is calculated based on Tier 1 capital divided by Average quarterly adjusted total assets.
|
(i)
|
Supplementary leverage ratio is calculated based on Tier 1 capital divided by Supplementary leverage exposure. PNC and PNC Bank are subject to a 3% minimum supplementary leverage ratio.
|
•
|
Traditional banking activities of gathering deposits and extending loans;
|
•
|
Equity and other investments and activities whose economic values are directly impacted by market factors; and
|
•
|
Fixed income securities, derivatives and foreign exchange activities, as a result of customer activities and securities underwriting.
|
|
Fourth Quarter 2019
|
|
|
Fourth Quarter 2018
|
|
|
Net Interest Income Sensitivity Simulation (a)
|
|
|
|
|
||
Effect on net interest income in first year from gradual interest rate change over the following 12
months of:
|
|
|
|
|
||
100 basis point increase
|
1.5
|
%
|
|
1.7
|
%
|
|
100 basis point decrease
|
(2.2
|
)%
|
|
(2.2
|
)%
|
|
Effect on net interest income in second year from gradual interest rate change over the preceding 12
months of:
|
|
|
|
|
||
100 basis point increase
|
3.8
|
%
|
|
3.7
|
%
|
|
100 basis point decrease
|
(6.9
|
)%
|
|
(6.2
|
)%
|
|
Duration of Equity Model (a)
|
|
|
|
|
||
Base case duration of equity (in years)
|
(3.7
|
)
|
|
(1.0
|
)
|
|
Key Period-End Interest Rates
|
|
|
|
|
||
One-month LIBOR
|
1.76
|
%
|
|
2.50
|
%
|
|
Three-month LIBOR
|
1.91
|
%
|
|
2.81
|
%
|
|
Three-year swap
|
1.69
|
%
|
|
2.59
|
%
|
|
(a)
|
Given the inherent limitations in certain of these measurement tools and techniques, results become less meaningful as interest rates approach zero.
|
|
December 31, 2019
|
||||||||
|
PNC
Economist
|
|
|
Market
Forward
|
|
|
Slope
Flattening
|
|
|
First year sensitivity
|
(.9
|
)%
|
|
(.4
|
)%
|
|
(1.2
|
)%
|
|
Second year sensitivity
|
(1.7
|
)%
|
|
.2
|
%
|
|
(5.0
|
)%
|
|
Dollars in millions
|
December 31 2019
|
|
|
December 31 2018
|
|
|
Change
|
|
|||||||
|
$
|
|
%
|
|
|||||||||||
BlackRock
|
$
|
8,558
|
|
|
$
|
8,016
|
|
|
$
|
542
|
|
|
7
|
%
|
|
Tax credit investments
|
2,218
|
|
|
2,219
|
|
|
(1
|
)
|
|
—
|
|
|
|||
Private equity and other
|
2,958
|
|
|
2,659
|
|
|
299
|
|
|
11
|
%
|
|
|||
Total
|
$
|
13,734
|
|
|
$
|
12,894
|
|
|
$
|
840
|
|
|
7
|
%
|
|
•
|
Operations: Risk resulting from inadequate or failed internal processes, misconduct or errors of people or fraud.
|
•
|
Compliance: Risk of legal or regulatory sanctions, financial loss, or damage to reputation resulting from failure to comply with laws, regulations, rules, self-regulatory standards, or other regulatory requirements.
|
•
|
Data Management: Risk associated with incomplete or inaccurate data.
|
•
|
Model: Risk associated with the design, implementation, and ongoing use and management of a model.
|
•
|
Technology and Systems: Risk associated with the use, operation, and adoption of technology.
|
•
|
Information Security: Risk resulting from the failure to protect information and ensure appropriate access to, and use and handling of information assets.
|
•
|
Business Continuity: Risk of potential disruptive events to business activities.
|
•
|
Third Party: Risk arising from failure of third party providers to conduct activity in a safe and sound manner and in compliance with contract provisions and applicable laws and regulations.
|
•
|
Probability of default (PD);
|
•
|
Loss given default (LGD);
|
•
|
Exposure at default;
|
•
|
Movement through delinquency stages;
|
•
|
Amounts and timing of expected future cash flows;
|
•
|
Value of collateral; and
|
•
|
Qualitative factors, such as changes in current economic conditions, that may not be reflected in modeled results. For all loans, the ALLL is the sum of three components: (i) asset specific/individual impaired reserves, (ii) quantitative (formulaic or pooled) reserves and (iii) qualitative (judgmental) reserves.
|
•
|
Allowances For Loan And Lease Losses And Unfunded Loan Commitments And Letters Of Credit in the Credit Risk Management section of this Item 7; and
|
•
|
Note 1 Accounting Policies and Note 4 Allowance for Loan and Lease Losses in the Notes To Consolidated Financial Statements and Allocation of Allowance for Loan and Lease Losses in the Statistical Information (Unaudited) section of Item 8 of this Report.
|
Accounting Standards Update (ASU)
|
Description
|
Financial Statement Impact
|
Goodwill -
ASU 2017-04
Issued January 2017
|
• Required effective date of January 1, 2020.
• Eliminates Step 2 from the goodwill impairment test to simplify the subsequent measurement of goodwill under which a loss was recognized only if the estimated implied fair value of the goodwill is below its carrying value.
• Requires impairment to be recognized if the reporting unit's carrying value exceeds the fair value.
|
• We adopted this standard on January 1, 2020.
• We do not expect the adoption of this standard to impact our consolidated results of operations or our consolidated financial position.
|
•
|
Contractual Obligations and Commitments included within the Risk Management section of this Item 7; and
|
•
|
Note 2 Loan Sale and Servicing Activities and Variable Interest Entities;
|
•
|
Note 10 Borrowed Funds;
|
•
|
Note 15 Equity; and
|
•
|
Note 20 Commitments, all of which are in the Notes To Consolidated Financial Statements included in Item 8 of this Report.
|
•
|
Our businesses, financial results and balance sheet values are affected by business and economic conditions, including the following:
|
–
|
Changes in interest rates and valuations in debt, equity and other financial markets.
|
–
|
Disruptions in the U.S. and global financial markets.
|
–
|
Actions by the Federal Reserve Board, U.S. Treasury and other government agencies, including those that impact money supply and market interest rates.
|
–
|
Changes in customer behavior due to changing business and economic conditions or legislative or regulatory initiatives.
|
–
|
Changes in customers’, suppliers’ and other counterparties’ performance and creditworthiness.
|
–
|
Impacts of tariffs and other trade policies of the U.S. and its global trading partners.
|
–
|
Slowing or reversal of the current U.S. economic expansion.
|
–
|
Commodity price volatility.
|
–
|
The U.S. economy grew at a solid pace in 2019 albeit more slowly than in 2018. Economic growth is expected to slow noticeably in 2020.
|
–
|
Job growth will continue in 2020, but at a slower pace from 2019 due to both difficulty in finding workers and slower economic growth. The unemployment rate is expected to remain near its current level in the near term, but the labor market will remain tight, pushing wages higher and supporting continued gains in consumer spending.
|
–
|
Inflation is expected to continue to slow in the near term because of lower commodity prices associated with coronavirus. Inflation is expected to gradually increase in 2021.
|
–
|
Our current baseline forecast expects the federal funds rate to remain unchanged in 2020. The federal funds rate is modestly positive for near-term economic growth in its current range of 1.50% to 1.75%.
|
•
|
Near-term risks are to the downside, including a further softening in the global economy, perhaps due to coronavirus; a further escalation in trade tensions; and geopolitical concerns. The federal funds rate is more likely to end 2020 below its current range than above it. But there are some upside opportunities as well, such as a comprehensive U.S.-China trade deal and stronger labor force growth.
|
•
|
PNC’s ability to take certain capital actions, including returning capital to shareholders, is subject to review by the Federal Reserve Board as part of PNC’s comprehensive capital plan for the applicable period in connection with the Federal Reserve Board’s Comprehensive Capital Analysis and Review (CCAR) process and to the acceptance of such capital plan and non-objection to such capital actions by the Federal Reserve Board.
|
•
|
PNC’s regulatory capital ratios in the future will depend on, among other things, the company’s financial performance, the scope and terms of final capital regulations then in effect and management actions affecting the composition of PNC’s balance sheet. In addition, PNC’s ability to determine, evaluate and forecast regulatory capital ratios, and to take actions (such as capital distributions) based on actual or forecasted capital ratios, will be dependent at least in part on the development, validation and regulatory review of related models.
|
•
|
Legal and regulatory developments could have an impact on our ability to operate our businesses, financial condition, results of operations, competitive position, reputation, or pursuit of attractive acquisition opportunities. Reputational impacts could affect matters such as business generation and retention, liquidity, funding, and ability to attract and retain management. These developments could include:
|
–
|
Changes to laws and regulations, including changes affecting oversight of the financial services industry, consumer protection, bank capital and liquidity standards, pension, bankruptcy and other industry aspects, and changes in accounting policies and principles.
|
–
|
Unfavorable resolution of legal proceedings or other claims and regulatory and other governmental investigations or other inquiries. These matters may result in monetary judgments or settlements or other remedies, including fines, penalties, restitution or alterations in our business practices, and in additional expenses and collateral costs, and may cause reputational harm to PNC.
|
–
|
Results of the regulatory examination and supervision process, including our failure to satisfy requirements of agreements with governmental agencies.
|
–
|
Impact on business and operating results of any costs associated with obtaining rights in intellectual property claimed by others and of adequacy of our intellectual property protection in general.
|
•
|
Business and operating results are affected by our ability to identify and effectively manage risks inherent in our businesses, including, where appropriate, through effective use of systems and controls, third-party insurance, derivatives, and capital management techniques, and to meet evolving regulatory capital and liquidity standards.
|
•
|
Business and operating results also include impacts relating to our equity interest in BlackRock, Inc. and rely to a significant extent on information provided to us by BlackRock. Risks and uncertainties that could affect BlackRock are discussed in more detail by BlackRock in its SEC filings.
|
•
|
We grow our business in part through acquisitions and new strategic initiatives. Risks and uncertainties include those presented by the nature of the business acquired and strategic initiative, including in some cases those associated with our
|
•
|
Competition can have an impact on customer acquisition, growth and retention and on credit spreads and product pricing, which can affect market share, deposits and revenues. Our ability to anticipate and respond to technological changes can also impact our ability to respond to customer needs and meet competitive demands.
|
•
|
Business and operating results can also be affected by widespread natural and other disasters, pandemics, dislocations, terrorist activities, system failures, security breaches, cyberattacks or international hostilities through impacts on the economy and financial markets generally or on us or our counterparties specifically.
|
|
Year ended December 31
|
||||||||||
In millions, except per share data
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Interest Income
|
|
|
|
|
|
||||||
Loans
|
$
|
10,525
|
|
|
$
|
9,580
|
|
|
$
|
8,238
|
|
Investment securities
|
2,426
|
|
|
2,261
|
|
|
1,998
|
|
|||
Other
|
811
|
|
|
741
|
|
|
578
|
|
|||
Total interest income
|
13,762
|
|
|
12,582
|
|
|
10,814
|
|
|||
Interest Expense
|
|
|
|
|
|
||||||
Deposits
|
1,986
|
|
|
1,229
|
|
|
623
|
|
|||
Borrowed funds
|
1,811
|
|
|
1,632
|
|
|
1,083
|
|
|||
Total interest expense
|
3,797
|
|
|
2,861
|
|
|
1,706
|
|
|||
Net interest income
|
9,965
|
|
|
9,721
|
|
|
9,108
|
|
|||
Noninterest Income
|
|
|
|
|
|
||||||
Asset management
|
1,850
|
|
|
1,825
|
|
|
1,942
|
|
|||
Consumer services
|
1,555
|
|
|
1,502
|
|
|
1,415
|
|
|||
Corporate services
|
1,914
|
|
|
1,849
|
|
|
1,742
|
|
|||
Residential mortgage
|
368
|
|
|
316
|
|
|
350
|
|
|||
Service charges on deposits
|
702
|
|
|
714
|
|
|
695
|
|
|||
Other
|
1,473
|
|
|
1,205
|
|
|
1,077
|
|
|||
Total noninterest income
|
7,862
|
|
|
7,411
|
|
|
7,221
|
|
|||
Total revenue
|
17,827
|
|
|
17,132
|
|
|
16,329
|
|
|||
Provision For Credit Losses
|
773
|
|
|
408
|
|
|
441
|
|
|||
Noninterest Expense
|
|
|
|
|
|
||||||
Personnel
|
5,647
|
|
|
5,471
|
|
|
5,268
|
|
|||
Occupancy
|
834
|
|
|
818
|
|
|
868
|
|
|||
Equipment
|
1,210
|
|
|
1,103
|
|
|
1,065
|
|
|||
Marketing
|
301
|
|
|
285
|
|
|
244
|
|
|||
Other
|
2,582
|
|
|
2,619
|
|
|
2,953
|
|
|||
Total noninterest expense
|
10,574
|
|
|
10,296
|
|
|
10,398
|
|
|||
Income before income taxes and noncontrolling interests
|
6,480
|
|
|
6,428
|
|
|
5,490
|
|
|||
Income taxes
|
1,062
|
|
|
1,082
|
|
|
102
|
|
|||
Net income
|
5,418
|
|
|
5,346
|
|
|
5,388
|
|
|||
Less: Net income attributable to noncontrolling interests
|
49
|
|
|
45
|
|
|
50
|
|
|||
Preferred stock dividends
|
236
|
|
|
236
|
|
|
236
|
|
|||
Preferred stock discount accretion and redemptions
|
4
|
|
|
4
|
|
|
26
|
|
|||
Net income attributable to common shareholders
|
$
|
5,129
|
|
|
$
|
5,061
|
|
|
$
|
5,076
|
|
Earnings Per Common Share
|
|
|
|
|
|
||||||
Basic
|
$
|
11.43
|
|
|
$
|
10.79
|
|
|
$
|
10.49
|
|
Diluted
|
$
|
11.39
|
|
|
$
|
10.71
|
|
|
$
|
10.36
|
|
Average Common Shares Outstanding
|
|
|
|
|
|
||||||
Basic
|
447
|
|
|
467
|
|
|
481
|
|
|||
Diluted
|
448
|
|
|
470
|
|
|
486
|
|
|
Year ended December 31
|
||||||||||
In millions
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Net income
|
$
|
5,418
|
|
|
$
|
5,346
|
|
|
$
|
5,388
|
|
Other comprehensive income (loss), before tax and net of reclassifications into Net income:
|
|
|
|
|
|
||||||
Net unrealized gains (losses) on non-OTTI securities
|
1,465
|
|
|
(526
|
)
|
|
16
|
|
|||
Net unrealized gains (losses) on OTTI securities
|
24
|
|
|
(14
|
)
|
|
172
|
|
|||
Net unrealized gains (losses) on cash flow hedge derivatives
|
297
|
|
|
(178
|
)
|
|
(287
|
)
|
|||
Pension and other postretirement benefit plan adjustments
|
158
|
|
|
16
|
|
|
169
|
|
|||
Other
|
22
|
|
|
(37
|
)
|
|
61
|
|
|||
Other comprehensive income (loss), before tax and net of reclassifications into Net income
|
1,966
|
|
|
(739
|
)
|
|
131
|
|
|||
Income tax benefit (expense) related to items of other comprehensive income
|
(442
|
)
|
|
156
|
|
|
(14
|
)
|
|||
Other comprehensive income (loss), after tax and net of reclassifications into Net income
|
1,524
|
|
|
(583
|
)
|
|
117
|
|
|||
Comprehensive income
|
6,942
|
|
|
4,763
|
|
|
5,505
|
|
|||
Less: Comprehensive income attributable to noncontrolling interests
|
49
|
|
|
45
|
|
|
50
|
|
|||
Comprehensive income attributable to PNC
|
$
|
6,893
|
|
|
$
|
4,718
|
|
|
$
|
5,455
|
|
|
December 31
|
|
|
December 31
|
|
||
In millions, except par value
|
2019
|
|
|
2018
|
|
||
Assets
|
|
|
|
||||
Cash and due from banks
|
$
|
5,061
|
|
|
$
|
5,608
|
|
Interest-earning deposits with banks
|
23,413
|
|
|
10,893
|
|
||
Loans held for sale (a)
|
1,083
|
|
|
994
|
|
||
Investment securities – available for sale
|
69,163
|
|
|
63,389
|
|
||
Investment securities – held to maturity
|
17,661
|
|
|
19,312
|
|
||
Loans (a)
|
239,843
|
|
|
226,245
|
|
||
Allowance for loan and lease losses
|
(2,742
|
)
|
|
(2,629
|
)
|
||
Net loans
|
237,101
|
|
|
223,616
|
|
||
Equity investments (b)
|
13,734
|
|
|
12,894
|
|
||
Mortgage servicing rights
|
1,644
|
|
|
1,983
|
|
||
Goodwill
|
9,233
|
|
|
9,218
|
|
||
Other (a)
|
32,202
|
|
|
34,408
|
|
||
Total assets
|
$
|
410,295
|
|
|
$
|
382,315
|
|
Liabilities
|
|
|
|
||||
Deposits
|
|
|
|
||||
Noninterest-bearing
|
$
|
72,779
|
|
|
$
|
73,960
|
|
Interest-bearing
|
215,761
|
|
|
193,879
|
|
||
Total deposits
|
288,540
|
|
|
267,839
|
|
||
Borrowed funds
|
|
|
|
||||
Federal Home Loan Bank borrowings
|
16,341
|
|
|
21,501
|
|
||
Bank notes and senior debt
|
29,010
|
|
|
25,018
|
|
||
Subordinated debt
|
6,134
|
|
|
5,895
|
|
||
Other (c)
|
8,778
|
|
|
5,005
|
|
||
Total borrowed funds
|
60,263
|
|
|
57,419
|
|
||
Allowance for unfunded loan commitments and letters of credit
|
318
|
|
|
285
|
|
||
Accrued expenses and other liabilities
|
11,831
|
|
|
9,002
|
|
||
Total liabilities
|
360,952
|
|
|
334,545
|
|
||
Equity
|
|
|
|
||||
Preferred stock (d)
|
|
|
|
||||
Common stock ($5 par value, Authorized 800 shares, issued 542 shares)
|
2,712
|
|
|
2,711
|
|
||
Capital surplus
|
16,369
|
|
|
16,277
|
|
||
Retained earnings
|
42,215
|
|
|
38,919
|
|
||
Accumulated other comprehensive income (loss)
|
799
|
|
|
(725
|
)
|
||
Common stock held in treasury at cost: 109 and 85 shares
|
(12,781
|
)
|
|
(9,454
|
)
|
||
Total shareholders’ equity
|
49,314
|
|
|
47,728
|
|
||
Noncontrolling interests
|
29
|
|
|
42
|
|
||
Total equity
|
49,343
|
|
|
47,770
|
|
||
Total liabilities and equity
|
$
|
410,295
|
|
|
$
|
382,315
|
|
(a)
|
Our consolidated assets included the following for which we have elected the fair value option: Loans held for sale of $1.1 billion, Loans of $.7 billion, and Other assets of
|
(b)
|
Amounts include our equity investment in BlackRock.
|
(c)
|
Our consolidated liabilities included Other borrowed funds of $.1 billion at both December 31, 2019 and 2018, for which we have elected the fair value option.
|
(d)
|
Par value less than $.5 million at each date.
|
|
|
|
Shareholders’ Equity
|
|
|
|||||||||||||||||||||||
In millions
|
Shares
Outstanding
Common
Stock
|
|
|
Common
Stock
|
|
Capital
Surplus -
Preferred
Stock
|
|
Capital
Surplus -
Common
Stock and
Other
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Treasury
Stock
|
|
|
Noncontrolling
Interests
|
|
Total
Equity
|
|
||||||||
Balance at December 31, 2016 (a)
|
485
|
|
|
$
|
2,709
|
|
$
|
3,977
|
|
$
|
12,674
|
|
$
|
31,670
|
|
$
|
(265
|
)
|
$
|
(5,066
|
)
|
|
$
|
1,155
|
|
$
|
46,854
|
|
Net income
|
|
|
|
|
|
5,338
|
|
|
|
|
50
|
|
5,388
|
|
||||||||||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
117
|
|
|
|
|
117
|
|
|||||||||||||||
Cash dividends declared
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common
|
|
|
|
|
|
(1,266
|
)
|
|
|
|
|
(1,266
|
)
|
|||||||||||||||
Preferred
|
|
|
|
|
|
(236
|
)
|
|
|
|
|
(236
|
)
|
|||||||||||||||
Preferred stock discount accretion
|
|
|
|
6
|
|
|
(6
|
)
|
|
|
|
|
|
|
||||||||||||||
Redemption of noncontrolling interests (b)
|
|
|
|
|
|
(19
|
)
|
|
|
|
(981
|
)
|
(1,000
|
)
|
||||||||||||||
Common stock activity (c)
|
|
|
1
|
|
|
17
|
|
|
|
|
|
|
18
|
|
||||||||||||||
Treasury stock activity
|
(12
|
)
|
|
|
|
(309
|
)
|
|
|
(1,838
|
)
|
|
|
(2,147
|
)
|
|||||||||||||
Other
|
|
|
|
2
|
|
7
|
|
|
|
|
|
(152
|
)
|
(143
|
)
|
|||||||||||||
Balance at December 31, 2017 (a)
|
473
|
|
|
$
|
2,710
|
|
$
|
3,985
|
|
$
|
12,389
|
|
$
|
35,481
|
|
$
|
(148
|
)
|
$
|
(6,904
|
)
|
|
$
|
72
|
|
$
|
47,585
|
|
Cumulative effect of ASU adoptions (d)
|
|
|
|
|
|
(22
|
)
|
6
|
|
|
|
|
(16
|
)
|
||||||||||||||
Balance at January 1, 2018 (a)
|
473
|
|
|
$
|
2,710
|
|
$
|
3,985
|
|
$
|
12,389
|
|
$
|
35,459
|
|
$
|
(142
|
)
|
$
|
(6,904
|
)
|
|
$
|
72
|
|
$
|
47,569
|
|
Net income
|
|
|
|
|
|
5,301
|
|
|
|
|
45
|
|
5,346
|
|
||||||||||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
(583
|
)
|
|
|
|
(583
|
)
|
|||||||||||||||
Cash dividends declared
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Common
|
|
|
|
|
|
(1,601
|
)
|
|
|
|
|
(1,601
|
)
|
|||||||||||||||
Preferred
|
|
|
|
|
|
(236
|
)
|
|
|
|
|
(236
|
)
|
|||||||||||||||
Preferred stock discount accretion
|
|
|
|
4
|
|
|
(4
|
)
|
|
|
|
|
|
|
||||||||||||||
Common stock activity (c)
|
|
|
1
|
|
|
19
|
|
|
|
|
|
|
20
|
|
||||||||||||||
Treasury stock activity
|
(16
|
)
|
|
|
|
(101
|
)
|
|
|
(2,550
|
)
|
|
|
(2,651
|
)
|
|||||||||||||
Other
|
|
|
|
(3
|
)
|
(16
|
)
|
|
|
|
|
(75
|
)
|
(94
|
)
|
|||||||||||||
Balance at December 31, 2018 (a)
|
457
|
|
|
$
|
2,711
|
|
$
|
3,986
|
|
$
|
12,291
|
|
$
|
38,919
|
|
$
|
(725
|
)
|
$
|
(9,454
|
)
|
|
$
|
42
|
|
$
|
47,770
|
|
Cumulative effect of ASU adoptions (e)
|
|
|
|
|
|
62
|
|
|
|
|
|
62
|
|
|||||||||||||||
Balance at January 1, 2019 (a)
|
457
|
|
|
$
|
2,711
|
|
$
|
3,986
|
|
$
|
12,291
|
|
$
|
38,981
|
|
$
|
(725
|
)
|
$
|
(9,454
|
)
|
|
$
|
42
|
|
$
|
47,832
|
|
Net income
|
|
|
|
|
|
5,369
|
|
|
|
|
49
|
|
5,418
|
|
||||||||||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
1,524
|
|
|
|
|
1,524
|
|
|||||||||||||||
Cash dividends declared
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common
|
|
|
|
|
|
(1,895
|
)
|
|
|
|
|
(1,895
|
)
|
|||||||||||||||
Preferred
|
|
|
|
|
|
(236
|
)
|
|
|
|
|
(236
|
)
|
|||||||||||||||
Preferred stock discount accretion
|
|
|
|
4
|
|
|
(4
|
)
|
|
|
|
|
|
|
||||||||||||||
Common stock activity (c)
|
|
|
1
|
|
|
20
|
|
|
|
|
|
|
21
|
|
||||||||||||||
Treasury stock activity
|
(24
|
)
|
|
|
|
3
|
|
|
|
(3,327
|
)
|
|
|
(3,324
|
)
|
|||||||||||||
Other
|
|
|
|
3
|
|
62
|
|
|
|
|
|
(62
|
)
|
3
|
|
|||||||||||||
Balance at December 31, 2019 (a)
|
433
|
|
|
$
|
2,712
|
|
$
|
3,993
|
|
$
|
12,376
|
|
$
|
42,215
|
|
$
|
799
|
|
$
|
(12,781
|
)
|
|
$
|
29
|
|
$
|
49,343
|
|
(a)
|
The par value of our preferred stock outstanding was less than $.5 million at each date and, therefore, is excluded from this presentation.
|
(b)
|
Relates to the redemption of Perpetual Trust Securities in the first quarter of 2017. See Note 15 in our 2017 Annual Report on Form 10-K for additional information.
|
(c)
|
Common stock activity totaled less than .5 million shares issued.
|
(d)
|
Represents the cumulative effect of adopting ASU 2014-09, ASU 2016-01, ASU 2017-12 and ASU 2018-02. See the Recently Adopted Accounting Standards portion of Note 1 Accounting Policies in our 2018 Form 10-K for additional detail on the adoption of these ASUs.
|
(e)
|
Represents the impact of the adoption of ASU 2016-02 related primarily to deferred gains on previous sale-leaseback transactions. See the Recently Adopted Accounting Standards portion of Note 1 Accounting Policies for additional detail.
|
|
|
Year ended December 31
|
||||||||||
In millions
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Operating Activities
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
5,418
|
|
|
$
|
5,346
|
|
|
$
|
5,388
|
|
Adjustments to reconcile net income to net cash provided (used) by operating activities
|
|
|
|
|
|
|
||||||
Provision for credit losses
|
|
773
|
|
|
408
|
|
|
441
|
|
|||
Depreciation and amortization
|
|
1,315
|
|
|
1,129
|
|
|
1,117
|
|
|||
Deferred income taxes
|
|
303
|
|
|
133
|
|
|
(403
|
)
|
|||
Changes in fair value of mortgage servicing rights
|
|
645
|
|
|
172
|
|
|
323
|
|
|||
Undistributed earnings of BlackRock
|
|
(531
|
)
|
|
(525
|
)
|
|
(727
|
)
|
|||
Net change in
|
|
|
|
|
|
|
||||||
Trading securities and other short-term investments
|
|
560
|
|
|
(893
|
)
|
|
305
|
|
|||
Loans held for sale
|
|
(123
|
)
|
|
1,635
|
|
|
(1,148
|
)
|
|||
Other assets
|
|
(788
|
)
|
|
108
|
|
|
647
|
|
|||
Accrued expenses and other liabilities
|
|
132
|
|
|
295
|
|
|
(704
|
)
|
|||
Other
|
|
(341
|
)
|
|
32
|
|
|
340
|
|
|||
Net cash provided (used) by operating activities
|
|
$
|
7,363
|
|
|
$
|
7,840
|
|
|
$
|
5,579
|
|
Investing Activities
|
|
|
|
|
|
|
||||||
Sales
|
|
|
|
|
|
|
||||||
Securities available for sale
|
|
$
|
7,755
|
|
|
$
|
7,505
|
|
|
$
|
5,647
|
|
Loans
|
|
1,664
|
|
|
1,323
|
|
|
2,001
|
|
|||
Repayments/maturities
|
|
|
|
|
|
|
||||||
Securities available for sale
|
|
11,974
|
|
|
9,388
|
|
|
10,734
|
|
|||
Securities held to maturity
|
|
3,348
|
|
|
2,447
|
|
|
2,948
|
|
|||
Purchases
|
|
|
|
|
|
|
||||||
Securities available for sale
|
|
(23,739
|
)
|
|
(23,418
|
)
|
|
(13,605
|
)
|
|||
Securities held to maturity
|
|
(1,751
|
)
|
|
(3,370
|
)
|
|
(5,605
|
)
|
|||
Loans
|
|
(1,027
|
)
|
|
(690
|
)
|
|
(841
|
)
|
|||
Net change in
|
|
|
|
|
|
|
||||||
Federal funds sold and resale agreements
|
|
4,899
|
|
|
(5,837
|
)
|
|
(245
|
)
|
|||
Interest-earning deposits with banks
|
|
(12,520
|
)
|
|
17,702
|
|
|
(2,884
|
)
|
|||
Loans
|
|
(14,963
|
)
|
|
(7,335
|
)
|
|
(10,483
|
)
|
|||
Net cash (paid for) received from acquisition and divestiture activity
|
|
75
|
|
|
|
|
|
(1,342
|
)
|
|||
Other
|
|
(705
|
)
|
|
(1,684
|
)
|
|
(1,220
|
)
|
|||
Net cash provided (used) by investing activities
|
|
$
|
(24,990
|
)
|
|
$
|
(3,969
|
)
|
|
$
|
(14,895
|
)
|
|
|
Year ended December 31
|
||||||||||
In millions
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Financing Activities
|
|
|
|
|
|
|
||||||
Net change in
|
|
|
|
|
|
|
||||||
Noninterest-bearing deposits
|
|
$
|
(1,166
|
)
|
|
$
|
(6,016
|
)
|
|
$
|
(264
|
)
|
Interest-bearing deposits
|
|
21,882
|
|
|
8,690
|
|
|
8,255
|
|
|||
Federal funds purchased and repurchase agreements
|
|
4,260
|
|
|
392
|
|
|
(148
|
)
|
|||
Federal Home Loan Bank borrowings
|
|
4,800
|
|
|
1,500
|
|
|
|
||||
Commercial paper
|
|
|
|
(100
|
)
|
|
100
|
|
||||
Other borrowed funds
|
|
(495
|
)
|
|
20
|
|
|
459
|
|
|||
Sales/issuances
|
|
|
|
|
|
|
||||||
Federal Home Loan Bank borrowings
|
|
12,040
|
|
|
9,500
|
|
|
11,000
|
|
|||
Bank notes and senior debt
|
|
8,977
|
|
|
3,238
|
|
|
7,062
|
|
|||
Subordinated debt
|
|
744
|
|
|
1,243
|
|
|
|
||||
Other borrowed funds
|
|
1,131
|
|
|
500
|
|
|
427
|
|
|||
Preferred stock
|
|
|
|
|
|
|
|
|
||||
Common and treasury stock
|
|
90
|
|
|
69
|
|
|
132
|
|
|||
Repayments/maturities
|
|
|
|
|
|
|
||||||
Federal Home Loan Bank borrowings
|
|
(22,000
|
)
|
|
(10,536
|
)
|
|
(7,512
|
)
|
|||
Bank notes and senior debt
|
|
(5,600
|
)
|
|
(6,175
|
)
|
|
(1,800
|
)
|
|||
Subordinated debt
|
|
(700
|
)
|
|
(575
|
)
|
|
(2,758
|
)
|
|||
Other borrowed funds
|
|
(1,174
|
)
|
|
(548
|
)
|
|
(318
|
)
|
|||
Redemption of noncontrolling interests
|
|
|
|
|
|
|
|
(1,000
|
)
|
|||
Acquisition of treasury stock
|
|
(3,578
|
)
|
|
(2,877
|
)
|
|
(2,447
|
)
|
|||
Preferred stock cash dividends paid
|
|
(236
|
)
|
|
(236
|
)
|
|
(236
|
)
|
|||
Common stock cash dividends paid
|
|
(1,895
|
)
|
|
(1,601
|
)
|
|
(1,266
|
)
|
|||
Net cash provided (used) by financing activities
|
|
$
|
17,080
|
|
|
$
|
(3,512
|
)
|
|
$
|
9,686
|
|
Net Increase (Decrease) In Cash And Due From Banks
|
|
$
|
(547
|
)
|
|
$
|
359
|
|
|
$
|
370
|
|
Cash and due from banks at beginning of period
|
|
5,608
|
|
|
5,249
|
|
|
4,879
|
|
|||
Cash and due from banks at end of period
|
|
$
|
5,061
|
|
|
$
|
5,608
|
|
|
$
|
5,249
|
|
Supplemental Disclosures
|
|
|
|
|
|
|
||||||
Interest paid
|
|
$
|
3,742
|
|
|
$
|
2,835
|
|
|
$
|
1,743
|
|
Income taxes paid
|
|
$
|
430
|
|
|
$
|
372
|
|
|
$
|
72
|
|
Income taxes refunded
|
|
$
|
17
|
|
|
$
|
468
|
|
|
$
|
24
|
|
Leased assets obtained in exchange for new operating lease liabilities
|
|
$
|
317
|
|
|
|
|
|
||||
Right-of-use assets recognized at adoption of ASU 2016-02
|
|
$
|
2,004
|
|
|
|
|
|
||||
Non-cash Investing and Financing Items
|
|
|
|
|
|
|
||||||
Transfer from loans to loans held for sale, net
|
|
$
|
958
|
|
|
$
|
403
|
|
|
$
|
419
|
|
Transfer from loans to foreclosed assets
|
|
$
|
174
|
|
|
$
|
193
|
|
|
$
|
215
|
|
Transfer from trading securities to available for sale securities
|
|
$
|
328
|
|
|
|
|
|
$
|
192
|
|
•
|
Does not have equity investors with voting rights that can directly or indirectly make decisions about the entity’s activities through those voting rights or similar rights; or
|
•
|
Has equity investors that do not provide sufficient equity for the entity to finance its activities without additional subordinated financial support.
|
•
|
Lending;
|
•
|
Securities portfolio;
|
•
|
Asset management;
|
•
|
Customer deposits;
|
•
|
Loan sales, loan securitizations, and servicing;
|
•
|
Brokerage services;
|
•
|
Sale of loans and securities;
|
•
|
Certain private equity activities; and
|
•
|
Securities, derivatives and foreign exchange activities.
|
•
|
Issuing loan commitments, standby letters of credit and financial guarantees;
|
•
|
Deposit account services;
|
•
|
Merchant services;
|
•
|
Selling various insurance products;
|
•
|
Providing treasury management services;
|
•
|
Providing merger and acquisition advisory and related services;
|
•
|
Debit and credit card transactions; and
|
•
|
Participating in certain capital markets transactions.
|
•
|
Ownership interest;
|
•
|
Our plans for the investment; and
|
•
|
The nature of the investment.
|
•
|
We use the equity method for general and limited partner ownership interests and limited liability companies in which we are considered to have significant influence over the operations of the investee. Under the equity method, we record our equity ownership share of net income or loss of the investee in Noninterest income and any dividends received on equity method investments are recorded as a reduction to the investment balance. When an equity investment experiences an other-than-temporary decline in value, we may be required to record a loss on the investment.
|
•
|
We measure equity securities that have a readily determinable fair value at fair value through Net income. Both realized and unrealized gains and losses are included in Noninterest income. Dividend income on these equity securities is included in Other interest income on our Consolidated Income Statement.
|
•
|
We generally use the practicability exception to fair value measurement for all other investments without a readily determinable fair value. When we elect this alternative measurement method, the carrying value is adjusted for impairment, if any, plus or minus changes in value resulting from observable price changes in orderly transactions for identical or similar instruments of the same issuer. These investments are written down to fair value if a qualitative assessment indicates impairment and the fair value is less than the carrying value. The amount of the write-down is accounted for as a loss included in Noninterest income. Distributions received on these investments are included in Noninterest income.
|
Commercial Lending
|
|
Loans Classified as Nonperforming and Accounted for as Nonaccrual
|
• Loans accounted for at amortized cost where:
– The loan is 90 days or more past due.
– The loan is rated substandard or worse due to the determination that full collection of principal and
interest is not probable as demonstrated by the following conditions:
• The collection of principal or interest is 90 days or more past due;
• Reasonable doubt exists as to the certainty of the borrower’s future debt service ability,
according to the terms of the credit arrangement, regardless of whether 90 days have passed or not;
• The borrower has filed or will likely file for bankruptcy;
• The bank advances additional funds to cover principal or interest;
• We are in the process of liquidating a commercial borrower; or
• We are pursuing remedies under a guarantee.
|
Loans Excluded from Nonperforming Classification but Accounted for as Nonaccrual
|
• Loans accounted for under the fair value option and full collection of principal and interest is not probable.
• Loans accounted for at the lower of cost or market less costs to sell (held for sale) and full collection of
principal and interest is not probable.
|
Loans Excluded from Nonperforming Classification and Nonaccrual Accounting
|
• Loans that are well secured and in the process of collection.
|
Consumer Lending
|
|
Loans Classified as Nonperforming and Accounted for as Nonaccrual
|
• Loans accounted for at amortized cost where full collection of contractual principal and interest is not
deemed probable as demonstrated in the policies below:
– The loan is 90 days past due for home equity and installment loans, and 180 days past due for well
secured residential real estate loans;
– The loan has been modified and classified as a troubled debt restructuring (TDR);
– Notification of bankruptcy has been received;
– The bank holds a subordinate lien position in the loan and the first lien mortgage loan is seriously
stressed (i.e., 90 days or more past due);
– Other loans within the same borrower relationship have been placed on nonaccrual or charge-offs have
been taken on them;
– The bank has ordered the repossession of non-real estate collateral securing the loan; or
– The bank has charged-off the loan to the value of the collateral.
|
Loans Excluded from Nonperforming Classification but Accounted for as Nonaccrual
|
• Loans accounted for under the fair value option and full collection of principal and interest is not probable.
• Loans accounted for at the lower of cost or market less costs to sell (held for sale) and full collection of
principal and interest is not probable.
|
Loans Excluded from Nonperforming Classification and Nonaccrual Accounting
|
• Purchased impaired loans because interest income is accreted through the accounting model.
• Certain government insured loans where substantially all principal and interest is insured.
• Residential real estate loans that are well secured and in the process of collection.
• Consumer loans and lines of credit, not secured by residential real estate or automobiles, as permitted by
regulatory guidance.
|
•
|
The bank holds a subordinate lien position in the loan and a foreclosure notice has been received on the first lien loan;
|
•
|
The bank holds a subordinate lien position in the loan which is 30 days or more past due with a combined loan to value ratio of greater than or equal to 110% and the first lien loan is seriously stressed (i.e., 90 days or more past due);
|
•
|
The loan is modified or otherwise restructured in a manner that results in the loan becoming collateral dependent;
|
•
|
Notification of bankruptcy has been received within the last 60 days;
|
•
|
The borrower has been discharged from personal liability through Chapter 7 bankruptcy and has not formally reaffirmed his or her loan obligation to us; or
|
•
|
The collateral securing the loan has been repossessed and the value of the collateral is less than the recorded investment of the loan outstanding.
|
•
|
Probability of default (PD);
|
•
|
Loss given default (LGD);
|
•
|
Exposure at default (EAD);
|
•
|
Movement through delinquency stages;
|
•
|
Amounts and timing of expected future cash flows;
|
•
|
Value of collateral; and
|
•
|
Qualitative factors, such as changes in current economic conditions, that may not be reflected in modeled results.
|
•
|
For commercial nonperforming loans and commercial TDRs greater than or equal to a defined dollar threshold, specific reserves are based on an analysis of the present value of the loan’s expected future cash flows, the loan’s observable market price or the fair value of the collateral.
|
•
|
For commercial nonperforming loans and commercial TDRs below the defined dollar threshold, the individual loan’s LGD percentage is multiplied by the loan balance and the results are aggregated for purposes of measuring specific reserve impairment.
|
•
|
Consumer nonperforming loans are collectively reserved for unless classified as consumer TDRs. For consumer TDRs, specific reserves are determined through an analysis of the present value of the loan’s expected future cash flows, except for those instances where loans have been deemed collateral dependent, including loans where borrowers have been discharged from personal liability through Chapter 7 bankruptcy and have not formally reaffirmed their loan obligations to us. Once that determination has been made, those TDRs are charged down to the fair value of the collateral less costs to sell at each period end.
|
•
|
Industry concentrations and conditions;
|
•
|
Changes in market conditions;
|
•
|
Recent credit quality trends;
|
•
|
Recent loss experience in particular portfolios, including specific and unique events;
|
•
|
Recent macro-economic factors;
|
•
|
Model imprecision;
|
•
|
Changes in lending policies and procedures;
|
•
|
Timing of available information, including the performance of first lien positions; and
|
•
|
Limitations of available historical data.
|
•
|
Deposit balances and interest rates for escrow and commercial reserve earnings;
|
•
|
Discount rates;
|
•
|
Estimated prepayment speeds; and
|
•
|
Estimated servicing costs.
|
Accounting Standards Update (ASU)
|
Description
|
Financial Statement Impact
|
Leases -
ASU 2016-02
Issued February 2016
|
• Requires lessees to recognize a right-of-use asset and related lease liability for all leases with lease terms of more than 12 months.
• Recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee will depend on its classification as a finance or operating lease.
• Targeted changes have been made to the lessor accounting model to align the guidance with the new lessee model and revenue recognition guidance.
• Permits option to adopt using a modified retrospective approach through a cumulative-effect adjustment to retained earnings at adoption.
|
• Adopted January 1, 2019 under the modified retrospective approach.
• Amended presentation and disclosures are made prospectively. Refer to the lease disclosures in this Note 1 and Note 24 Leases for additional information.
• The impact of adoption was immaterial to PNC's consolidated income statement.
• The impact of adoption of the changes to the lessor accounting model did not have a material impact on our financial statements.
|
Accounting Standards Update (ASU)
|
Description
|
Financial Statement Impact
|
Credit Losses - ASU 2016-13
Issued June 2016
Codification Improvements - ASU 2019-04
Various improvements related to Credit Losses (Topics 1, 2 and 5)
Issued April 2019
Targeted Transition
Relief - Credit Losses - ASU 2019-05
Issued May 2019
Codification Improvements - ASU 2019-11
Issued November 2019
|
• Required effective date of January 1, 2020.
• Commonly referred to as the Current Expected Credit Losses (CECL) standard.
• Replaces measurement, recognition and disclosure guidance for credit related reserves (i.e., ALLL and the allowance for unfunded loan commitments and letters of credit) and OTTI for debt securities.
• Requires the use of an expected credit loss methodology; specifically, current expected credit losses for the remaining life of the asset will be recognized starting from the time of origination or acquisition.
• Methodology applies to loans, net investment in leases, debt securities and certain financial assets not accounted for at fair value through net income. It will also apply to off-balance sheet credit exposures except for unconditionally cancellable commitments.
• In-scope assets will be presented at the net amount expected to be collected after the deduction or addition of the allowance for credit losses (ACL) from the amortized cost basis of the assets.
• Requires inclusion of expected recoveries of previously charged-off amounts for in-scope assets.
• Requires enhanced credit quality disclosures including disaggregation of credit quality indicators by vintage.
• Requires a modified retrospective approach through a cumulative-effect adjustment to retained earnings at adoption.
|
Subsequent event
• We adopted the CECL standard on January 1, 2020.
• Based on current and forecasted economic conditions and portfolio balances as of January 1, 2020, the adoption of the CECL standard resulted in an ACL of $3.7 billion. See Table 34 for details of the ACL composition and a summary of the impact of adoption. The overall change in total reserves at December 31, 2019 was primarily due to the move to a life of loan reserve estimate as well as methodology changes required under CECL.
• Our ACL estimate uses various models and estimation techniques based on our historical loss experience, current borrower characteristics, current conditions, reasonable and supportable forecasts and other relevant factors. Expected losses in our reasonable and supportable forecast period of three years are estimated using four macroeconomic scenarios and their estimated probabilities. These scenarios are produced by our economics team using a combination of structural models and expert judgment and are designed to reflect a range of plausible economic conditions and emerging business cycles over the next three years. After the end of the reasonable and supportable forecast period, expected losses are reverted to historical average losses, using a reversion period where applicable.
• ACL also includes identified qualitative factors related to idiosyncratic risk factors, changes in current economic conditions that may not be reflected in quantitatively derived results, and other relevant factors to ensure the ACL reflects our best estimate of current expected credit losses.
• We expect that our CECL estimate will be sensitive to various factors, including, but not limited to, the following major factors:
- Current economic conditions and borrower quality: Our forecast of expected losses depends on conditions and portfolio quality as of the estimation date. As current conditions evolve, forecasted losses could be materially affected.
- Scenario weights and design: Our loss estimates are sensitive to the shape and severity of macroeconomic forecasts and thus vary significantly between upside and downside scenarios. Changes to probability weights assigned to these scenarios and timing of peak business cycles reflected by the scenarios could materially affect our loss estimates.
- Portfolio volume and mix: Changes to the volume and mix in our portfolios could materially affect our estimates, as CECL reserves would be recognized at origination or acquisition.
• We implemented the CECL standard using the modified retrospective approach, and did not elect to maintain purchased credit impaired accounting upon adoption. We elected the one-time fair value option election for some of our purchased credit impaired loans and nonperforming assets.
|
Accounting Standards Update (ASU)
|
Description
|
Financial Statement Impact
|
Codification Improvements - ASU 2019-04
Topic 3: Codification Improvements to ASU 2017-12 and Other Hedging Items
Issued April 2019
|
• Required effective date of January 1, 2020.
• Targeted improvements related to:
- Partial-term fair value hedges of interest rate risk
- Amortization of fair value hedge basis adjustments
- Disclosure of fair value hedge basis adjustments
- Consideration of the hedged contractually specified interest rate under the hypothetical derivative method
- Application of a first-payments-received cash flow hedging technique to overall cash flows on a group of variable interest payments
- Update to transition guidance for ASU 2017-12
• This ASU permits a one-time transfer out of held to maturity securities to provide entities the opportunity to hedge fixed rate, prepayable securities under a last of layer hedging strategy (although an entity is not required to hedge such securities subsequent to transfer).
|
Subsequent event
• We adopted this standard on January 1, 2020.
• As permitted by the eligibility requirements in this guidance, at adoption we elected to transfer debt securities with an amortized cost of $16.2 billion (fair value of $16.5 billion) from held to maturity to the available for sale portfolio. The transfer resulted in a pretax increase to AOCI of $306 million. There were no other impacts to PNC's consolidated financial statements from the adoption of this guidance.
|
|
|
ALLL (a)
|
|
ACL (a)
|
||||||
In millions
|
|
December 31, 2019
|
|
Transition Adjustment
|
|
January 1, 2020
|
|
|||
Allowance (a)
|
|
|
|
|
||||||
Loans and leases
|
|
|
|
|
||||||
Commercial lending
|
|
$
|
1,812
|
|
$
|
(304
|
)
|
$
|
1,508
|
|
Consumer lending
|
|
930
|
|
767
|
|
1,697
|
|
|||
Total loans and leases allowance
|
|
2,742
|
|
463
|
|
3,205
|
|
|||
Off-balance sheet credit exposures (b)
|
|
318
|
|
179
|
|
497
|
|
|||
Other
|
|
—
|
|
19
|
|
19
|
|
|||
Total allowance
|
|
$
|
3,060
|
|
$
|
661
|
|
$
|
3,721
|
|
|
|
|
|
|
||||||
In millions
|
|
December 31, 2019
|
|
Transition Adjustment
|
|
January 1, 2020
|
|
|||
Impact to retained earnings (c)
|
|
$
|
42,215
|
|
$
|
(671
|
)
|
$
|
41,544
|
|
In millions
|
Residential Mortgages
|
|
|
Commercial Mortgages (a)
|
|
|
|||
Cash Flows - Year ended December 31, 2019
|
|
|
|
|
|
||||
Sales of loans (b)
|
$
|
4,259
|
|
|
|
$
|
3,540
|
|
|
Repurchases of previously transferred loans (c)
|
$
|
321
|
|
|
|
$
|
30
|
|
|
Servicing fees (d)
|
$
|
352
|
|
|
|
$
|
130
|
|
|
Servicing advances recovered/(funded), net
|
$
|
45
|
|
|
|
$
|
63
|
|
|
Cash flows on mortgage-backed securities held (e)
|
$
|
4,362
|
|
|
|
$
|
84
|
|
|
Cash Flows - Year ended December 31, 2018
|
|
|
|
|
|
||||
Sales of loans (b)
|
$
|
4,474
|
|
|
|
$
|
4,140
|
|
|
Repurchases of previously transferred loans (c)
|
$
|
393
|
|
|
|
$
|
32
|
|
|
Servicing fees (d)
|
$
|
362
|
|
|
|
$
|
135
|
|
|
Servicing advances recovered/(funded), net
|
$
|
45
|
|
|
|
$
|
(3
|
)
|
|
Cash flows on mortgage-backed securities held (e)
|
$
|
1,964
|
|
|
|
$
|
109
|
|
|
(a)
|
Represents cash flow information associated with both commercial mortgage loan transfer and servicing activities.
|
(b)
|
Gains/losses recognized on sales of loans were insignificant for the periods presented.
|
(c)
|
Includes both residential and commercial mortgage government insured or guaranteed loans eligible for repurchase through the exercise of our ROAP option, as well as residential mortgage loans repurchased due to alleged breaches of origination covenants or representations and warranties made to purchasers.
|
(d)
|
Includes contractually specified servicing fees, late charges and ancillary fees.
|
(e)
|
Represents cash flows on securities where we transferred to, and/or service loans for, a securitization SPE and we hold securities issued by that SPE. The carrying values of such securities held were $17.8 billion in residential mortgage-backed securities and $.6 billion in commercial mortgage-backed securities at December 31, 2019 and $13.3 billion in residential mortgage-backed securities and $.6 billion in commercial mortgage-backed securities at December 31, 2018.
|
In millions
|
Residential Mortgages
|
|
|
|
Commercial Mortgages (a)
|
|
|
||
December 31, 2019
|
|
|
|
|
|
||||
Total principal balance
|
$
|
49,323
|
|
|
|
$
|
42,414
|
|
|
Delinquent loans (b)
|
$
|
492
|
|
|
|
$
|
64
|
|
|
December 31, 2018
|
|
|
|
|
|
||||
Total principal balance
|
$
|
54,028
|
|
|
|
$
|
47,969
|
|
|
Delinquent loans (b)
|
$
|
622
|
|
|
|
$
|
234
|
|
|
Year ended December 31, 2019
|
|
|
|
|
|
||||
Net charge-offs (c)
|
$
|
40
|
|
|
|
$
|
520
|
|
|
Year ended December 31, 2018
|
|
|
|
|
|
||||
Net charge-offs (c)
|
$
|
47
|
|
|
|
$
|
269
|
|
|
(a)
|
Represents information at the securitization level in which we have sold loans and we are the servicer for the securitization.
|
(b)
|
Serviced delinquent loans are 90 days or more past due or are in process of foreclosure.
|
(c)
|
Net charge-offs for Residential mortgages represent credit losses less recoveries distributed and as reported to investors during the period. Net charge-offs for Commercial mortgages represent credit losses less recoveries distributed and as reported by the trustee for commercial mortgage backed securitizations. Realized losses for Agency securitizations are not reflected as we do not manage the underlying real estate upon foreclosure and, as such, do not have access to loss information.
|
In millions
|
PNC Risk of Loss (a)
|
|
|
|
Carrying Value of Assets
Owned by PNC |
|
|
|
|
Carrying Value of Liabilities
Owned by PNC |
|
|
|||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||
Mortgage-backed securitizations (b)
|
$
|
19,287
|
|
|
|
$
|
19,287
|
|
(c)
|
|
|
|
|
||
Tax credit investments and other
|
3,131
|
|
|
|
3,028
|
|
(d)
|
|
|
$
|
1,101
|
|
(e)
|
||
Total
|
$
|
22,418
|
|
|
|
$
|
22,315
|
|
|
|
|
$
|
1,101
|
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||
Mortgage-backed securitizations (b)
|
$
|
14,266
|
|
|
|
$
|
14,266
|
|
(c)
|
|
|
|
|
||
Tax credit investments and other
|
2,949
|
|
|
|
2,911
|
|
(d)
|
|
|
$
|
806
|
|
(e)
|
||
Total
|
$
|
17,215
|
|
|
|
$
|
17,177
|
|
|
|
|
$
|
806
|
|
|
(a)
|
Represents loans, investments and other assets related to non-consolidated VIEs, net of collateral (if applicable). The risk of loss excludes any potential tax recapture associated with tax credit investments.
|
(b)
|
Amounts reflect involvement with securitization SPEs where we transferred to, and/or service loans for, an SPE and we hold securities issued by that SPE. Values disclosed in the PNC Risk of Loss column represent our maximum exposure to loss for those securities’ holdings.
|
(c)
|
Included in Investment securities, Mortgage servicing rights and Other assets on our Consolidated Balance Sheet.
|
(d)
|
Included in Investment securities, Loans, Equity investments and Other assets on our Consolidated Balance Sheet.
|
(e)
|
Included in Deposits and Other liabilities on our Consolidated Balance Sheet.
|
|
|
Accruing
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Dollars in millions
|
|
Current or Less
Than 30 Days
Past Due
|
|
|
30-59
Days
Past Due
|
|
|
60-89
Days
Past Due
|
|
|
90 Days
Or More
Past Due
|
|
|
Total
Past
Due (b)
|
|
|
|
Nonperforming
Loans
|
|
|
Fair Value
Option
Nonaccrual
Loans (c)
|
|
|
Purchased
Impaired
Loans
|
|
|
Total
Loans (d)
|
|
|||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Commercial Lending
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Commercial
|
|
$
|
124,695
|
|
|
$
|
102
|
|
|
$
|
30
|
|
|
$
|
85
|
|
|
$
|
217
|
|
|
|
$
|
425
|
|
|
|
|
|
|
$
|
125,337
|
|
||||
Commercial real estate
|
|
28,061
|
|
|
4
|
|
|
1
|
|
|
|
|
5
|
|
|
|
44
|
|
|
|
|
|
|
28,110
|
|
||||||||||||
Equipment lease
financing |
|
7,069
|
|
|
49
|
|
|
5
|
|
|
|
|
54
|
|
|
|
32
|
|
|
|
|
|
|
7,155
|
|
||||||||||||
Total commercial lending
|
|
159,825
|
|
|
155
|
|
|
36
|
|
|
85
|
|
|
276
|
|
|
|
501
|
|
|
|
|
|
|
|
|
160,602
|
|
|||||||||
Consumer Lending
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Home equity
|
|
23,791
|
|
|
58
|
|
|
24
|
|
|
|
|
82
|
|
|
|
669
|
|
|
|
|
$
|
543
|
|
|
25,085
|
|
||||||||||
Residential real estate
|
|
19,640
|
|
|
140
|
|
|
69
|
|
|
315
|
|
|
524
|
|
(b)
|
|
315
|
|
|
$
|
166
|
|
|
1,176
|
|
|
21,821
|
|
||||||||
Automobile
|
|
16,376
|
|
|
178
|
|
|
47
|
|
|
18
|
|
|
243
|
|
|
|
135
|
|
|
|
|
|
|
16,754
|
|
|||||||||||
Credit card
|
|
7,133
|
|
|
60
|
|
|
37
|
|
|
67
|
|
|
164
|
|
|
|
11
|
|
|
|
|
|
|
7,308
|
|
|||||||||||
Education
|
|
3,156
|
|
|
55
|
|
|
34
|
|
|
91
|
|
|
180
|
|
(b)
|
|
|
|
|
|
|
|
3,336
|
|
||||||||||||
Other consumer
|
|
4,898
|
|
|
15
|
|
|
11
|
|
|
9
|
|
|
35
|
|
|
|
4
|
|
|
|
|
|
|
4,937
|
|
|||||||||||
Total consumer lending
|
|
74,994
|
|
|
506
|
|
|
222
|
|
|
500
|
|
|
1,228
|
|
|
|
1,134
|
|
|
166
|
|
|
1,719
|
|
|
79,241
|
|
|||||||||
Total
|
|
$
|
234,819
|
|
|
$
|
661
|
|
|
$
|
258
|
|
|
$
|
585
|
|
|
$
|
1,504
|
|
|
|
$
|
1,635
|
|
|
$
|
166
|
|
|
$
|
1,719
|
|
|
$
|
239,843
|
|
Percentage of total loans
|
|
97.90
|
%
|
|
.28
|
%
|
|
.11
|
%
|
|
.24
|
%
|
|
.63
|
%
|
|
|
.68
|
%
|
|
.07
|
%
|
|
.72
|
%
|
|
100.00
|
%
|
|||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Commercial Lending
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Commercial
|
|
$
|
116,300
|
|
|
$
|
82
|
|
|
$
|
54
|
|
|
$
|
52
|
|
|
$
|
188
|
|
|
|
$
|
346
|
|
|
|
|
|
|
$
|
116,834
|
|
||||
Commercial real estate
|
|
28,056
|
|
|
6
|
|
|
3
|
|
|
|
|
9
|
|
|
|
75
|
|
|
|
|
|
|
28,140
|
|
||||||||||||
Equipment lease
financing |
|
7,229
|
|
|
56
|
|
|
12
|
|
|
|
|
68
|
|
|
|
11
|
|
|
|
|
|
|
7,308
|
|
||||||||||||
Total commercial lending
|
|
151,585
|
|
|
144
|
|
|
69
|
|
|
52
|
|
|
265
|
|
|
|
432
|
|
|
|
|
|
|
|
|
152,282
|
|
|||||||||
Consumer Lending
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Home equity
|
|
24,556
|
|
|
66
|
|
|
25
|
|
|
|
|
91
|
|
|
|
797
|
|
|
|
|
$
|
679
|
|
|
26,123
|
|
||||||||||
Residential real estate
|
|
16,216
|
|
|
135
|
|
|
73
|
|
|
363
|
|
|
571
|
|
(b)
|
|
350
|
|
|
$
|
182
|
|
|
1,338
|
|
|
18,657
|
|
||||||||
Automobile
|
|
14,165
|
|
|
113
|
|
|
29
|
|
|
12
|
|
|
154
|
|
|
|
100
|
|
|
|
|
|
|
14,419
|
|
|||||||||||
Credit card
|
|
6,222
|
|
|
46
|
|
|
29
|
|
|
53
|
|
|
128
|
|
|
|
7
|
|
|
|
|
|
|
6,357
|
|
|||||||||||
Education
|
|
3,571
|
|
|
69
|
|
|
41
|
|
|
141
|
|
|
251
|
|
(b)
|
|
|
|
|
|
|
|
3,822
|
|
||||||||||||
Other consumer
|
|
4,552
|
|
|
12
|
|
|
5
|
|
|
8
|
|
|
25
|
|
|
|
8
|
|
|
|
|
|
|
4,585
|
|
|||||||||||
Total consumer lending
|
|
69,282
|
|
|
441
|
|
|
202
|
|
|
577
|
|
|
1,220
|
|
|
|
1,262
|
|
|
182
|
|
|
2,017
|
|
|
73,963
|
|
|||||||||
Total
|
|
$
|
220,867
|
|
|
$
|
585
|
|
|
$
|
271
|
|
|
$
|
629
|
|
|
$
|
1,485
|
|
|
|
$
|
1,694
|
|
|
$
|
182
|
|
|
$
|
2,017
|
|
|
$
|
226,245
|
|
Percentage of total loans
|
|
97.62
|
%
|
|
.26
|
%
|
|
.12
|
%
|
|
.28
|
%
|
|
.66
|
%
|
|
|
.75
|
%
|
|
.08
|
%
|
|
.89
|
%
|
|
100.00
|
%
|
(a)
|
Amounts in table represent recorded investment and exclude loans held for sale. Recorded investment does not include any associated valuation allowance.
|
(b)
|
Past due loan amounts exclude purchased impaired loans, even if contractually past due (or if we do not expect to receive payment in full based on the original contractual terms), as we are currently accreting interest income over the expected life of the loans. Past due loan amounts include government insured or guaranteed Residential real estate loans totaling $.4 billion and $.5 billion at December 31, 2019 and 2018, respectively, and Education loans totaling $.2 billion at both December 31, 2019 and 2018.
|
(c)
|
Consumer loans accounted for under the fair value option for which we do not expect to collect substantially all principal and interest are subject to nonaccrual accounting and classification upon meeting any of our nonaccrual policies. Given that these loans are not accounted for at amortized cost, these loans have been excluded from the nonperforming loan population.
|
(d)
|
Net of unearned income, unamortized deferred fees and costs on originated loans, and premiums or discounts on purchased loans totaling $1.1 billion and $1.2 billion December 31, 2019 and 2018, respectively.
|
Dollars in millions
|
|
December 31
2019 |
|
|
December 31
2018 |
|
|
||
Nonperforming loans
|
|
|
|
|
|
||||
Total commercial lending
|
|
$
|
501
|
|
|
$
|
432
|
|
|
Total consumer lending (a)
|
|
1,134
|
|
|
1,262
|
|
|
||
Total nonperforming loans
|
|
1,635
|
|
|
1,694
|
|
|
||
OREO and foreclosed assets
|
|
117
|
|
|
114
|
|
|
||
Total nonperforming assets
|
|
$
|
1,752
|
|
|
$
|
1,808
|
|
|
Nonperforming loans to total loans
|
|
.68
|
%
|
|
.75
|
%
|
|
||
Nonperforming assets to total loans, OREO and foreclosed assets
|
|
.73
|
%
|
|
.80
|
%
|
|
||
Nonperforming assets to total assets
|
|
.43
|
%
|
|
.47
|
%
|
|
||
Interest on nonperforming loans (b)
|
|
|
|
|
|
||||
Computed on original terms
|
|
$
|
124
|
|
|
$
|
123
|
|
|
Recognized prior to nonperforming status
|
|
$
|
17
|
|
|
$
|
17
|
|
|
(a)
|
Excludes most unsecured consumer loans and lines of credit, which are charged off after 120 to 180 days past due and are not placed on nonperforming status.
|
(b)
|
Amounts are for the year ended.
|
In millions
|
|
Pass Rated
|
|
Criticized
|
|
Total Loans
|
||||||
December 31, 2019
|
|
|
|
|
|
|
||||||
Commercial
|
|
$
|
119,761
|
|
|
$
|
5,576
|
|
|
$
|
125,337
|
|
Commercial real estate
|
|
27,424
|
|
|
686
|
|
|
28,110
|
|
|||
Equipment lease financing
|
|
6,891
|
|
|
264
|
|
|
7,155
|
|
|||
Total commercial lending
|
|
$
|
154,076
|
|
|
$
|
6,526
|
|
|
$
|
160,602
|
|
December 31, 2018
|
|
|
|
|
|
|
||||||
Commercial
|
|
$
|
111,276
|
|
|
$
|
5,558
|
|
|
$
|
116,834
|
|
Commercial real estate
|
|
27,682
|
|
|
458
|
|
|
28,140
|
|
|||
Equipment lease financing
|
|
7,180
|
|
|
128
|
|
|
7,308
|
|
|||
Total commercial lending
|
|
$
|
146,138
|
|
|
$
|
6,144
|
|
|
$
|
152,282
|
|
(a)
|
Loans are classified as Pass Rated and Criticized based on the regulatory classification definitions. The Criticized classification includes loans that were rated special mention, substandard or doubtful as of December 31, 2019 and 2018. We use PD and LGD to rate loans in the commercial lending portfolio.
|
|
December 31, 2019
|
December 31, 2018
|
||||||||||
|
Home equity
|
|
Residential real estate
|
|
Home equity
|
|
Residential real estate
|
|
||||
In millions
|
||||||||||||
Current estimated LTV ratios
|
|
|
|
|
||||||||
Greater than or equal to 125%
|
$
|
366
|
|
$
|
112
|
|
$
|
461
|
|
$
|
116
|
|
Greater than or equal to 100% to less than 125%
|
877
|
|
221
|
|
1,020
|
|
255
|
|
||||
Greater than or equal to 90% to less than 100%
|
1,047
|
|
340
|
|
1,174
|
|
335
|
|
||||
Less than 90%
|
22,068
|
|
19,305
|
|
22,644
|
|
15,922
|
|
||||
No LTV ratio available
|
184
|
|
83
|
|
145
|
|
6
|
|
||||
Government insured or guaranteed loans
|
|
584
|
|
|
685
|
|
||||||
Purchased impaired loans
|
543
|
|
1,176
|
|
679
|
|
1,338
|
|
||||
Total loans
|
$
|
25,085
|
|
$
|
21,821
|
|
$
|
26,123
|
|
$
|
18,657
|
|
Updated FICO Scores
|
|
|
|
|
|
|||||||
Greater than 660
|
$
|
22,245
|
|
$
|
19,341
|
|
$
|
22,996
|
|
$
|
15,956
|
|
Less than or equal to 660
|
2,019
|
|
569
|
|
2,210
|
|
585
|
|
||||
No FICO score available
|
278
|
|
151
|
|
238
|
|
93
|
|
||||
Government insured or guaranteed loans
|
|
584
|
|
|
685
|
|
||||||
Purchased impaired loans
|
543
|
|
1,176
|
|
679
|
|
1,338
|
|
||||
Total loans
|
$
|
25,085
|
|
$
|
21,821
|
|
$
|
26,123
|
|
$
|
18,657
|
|
Dollars in millions
|
|
Automobile
|
Credit Card
|
Education
|
Other Consumer
|
||||||||
December 31, 2019
|
|
|
|
|
|
||||||||
FICO score greater than 719
|
|
$
|
9,232
|
|
$
|
3,867
|
|
$
|
1,139
|
|
$
|
1,421
|
|
650 to 719
|
|
4,577
|
|
2,326
|
|
197
|
|
843
|
|
||||
620 to 649
|
|
1,001
|
|
419
|
|
25
|
|
132
|
|
||||
Less than 620
|
|
1,603
|
|
544
|
|
27
|
|
143
|
|
||||
No FICO score available or required (a)
|
|
341
|
|
152
|
|
15
|
|
27
|
|
||||
Total loans using FICO credit metric
|
|
16,754
|
|
7,308
|
|
1,403
|
|
2,566
|
|
||||
Consumer loans using other internal credit metrics
|
|
|
|
1,933
|
|
2,371
|
|
||||||
Total loans
|
|
$
|
16,754
|
|
$
|
7,308
|
|
$
|
3,336
|
|
$
|
4,937
|
|
Weighted-average updated FICO score (b)
|
|
726
|
|
724
|
|
773
|
|
727
|
|
||||
December 31, 2018
|
|
|
|
|
|
||||||||
FICO score greater than 719
|
|
$
|
7,740
|
|
$
|
3,809
|
|
$
|
1,240
|
|
$
|
1,280
|
|
650 to 719
|
|
4,365
|
|
1,759
|
|
194
|
|
641
|
|
||||
620 to 649
|
|
1,007
|
|
280
|
|
26
|
|
106
|
|
||||
Less than 620
|
|
1,027
|
|
332
|
|
24
|
|
105
|
|
||||
No FICO score available or required (a)
|
|
280
|
|
177
|
|
57
|
|
25
|
|
||||
Total loans using FICO credit metric
|
|
14,419
|
|
6,357
|
|
1,541
|
|
2,157
|
|
||||
Consumer loans using other internal credit metrics
|
|
|
|
2,281
|
|
2,428
|
|
||||||
Total loans
|
|
$
|
14,419
|
|
$
|
6,357
|
|
$
|
3,822
|
|
$
|
4,585
|
|
Weighted-average updated FICO score (b)
|
|
726
|
|
733
|
|
774
|
|
732
|
|
(a)
|
Loans with no FICO score available or required generally refers to new accounts issued to borrowers with limited credit history, accounts for which we cannot obtain an updated FICO score (e.g., recent profile changes), cards issued with a business name and/or cards secured by collateral. Management proactively assesses the risk and size of this loan category and, when necessary, takes actions to mitigate the credit risk.
|
(b)
|
Weighted-average updated FICO score excludes accounts with no FICO score available or required.
|
|
|
Number
of Loans
|
|
|
|
Pre-TDR
Recorded
Investment (b)
|
|
|
|
Post-TDR Recorded Investment (c)
|
||||||||||||||||
During the year ended December 31, 2019
Dollars in millions |
|
|
Principal
Forgiveness
|
|
|
Rate
Reduction
|
|
|
Other
|
|
|
|
Total
|
|
||||||||||||
Total commercial lending
|
|
75
|
|
|
|
$
|
278
|
|
|
|
|
|
$
|
11
|
|
|
$
|
241
|
|
|
|
$
|
252
|
|
||
Total consumer lending
|
|
14,548
|
|
|
|
172
|
|
|
|
|
|
97
|
|
|
64
|
|
|
|
161
|
|
||||||
Total TDRs
|
|
14,623
|
|
|
|
$
|
450
|
|
|
|
|
|
|
$
|
108
|
|
|
$
|
305
|
|
|
|
$
|
413
|
|
|
During the year ended December 31, 2018
Dollars in millions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total commercial lending
|
|
85
|
|
|
|
$
|
272
|
|
|
|
$
|
2
|
|
|
$
|
67
|
|
|
$
|
179
|
|
|
|
$
|
248
|
|
Total consumer lending
|
|
12,096
|
|
|
|
163
|
|
|
|
1
|
|
|
86
|
|
|
63
|
|
|
|
150
|
|
|||||
Total TDRs
|
|
12,181
|
|
|
|
$
|
435
|
|
|
|
$
|
3
|
|
|
$
|
153
|
|
|
$
|
242
|
|
|
|
$
|
398
|
|
During the year ended December 31, 2017
Dollars in millions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total commercial lending
|
|
120
|
|
|
|
$
|
293
|
|
|
|
$
|
18
|
|
|
$
|
7
|
|
|
$
|
227
|
|
|
|
$
|
252
|
|
Total consumer lending
|
|
11,993
|
|
|
|
248
|
|
|
|
|
|
|
146
|
|
|
97
|
|
|
|
243
|
|
|||||
Total TDRs
|
|
12,113
|
|
|
|
$
|
541
|
|
|
|
$
|
18
|
|
|
$
|
153
|
|
|
$
|
324
|
|
|
|
$
|
495
|
|
(a)
|
Impact of partial charge-offs at TDR date are included in this table.
|
(b)
|
Represents the recorded investment of the loans as of the quarter end prior to TDR designation, and excludes immaterial amounts of accrued interest receivable.
|
(c)
|
Represents the recorded investment of the TDRs as of the end of the quarter in which the TDR occurs, and excludes immaterial amounts of accrued interest receivable.
|
In millions
|
|
Unpaid Principal Balance
|
|
|
Recorded Investment
|
|
|
Associated Allowance
|
|
|
Average Recorded Investment (a)
|
|
||||
December 31, 2019
|
|
|
|
|
|
|
|
|
||||||||
Impaired loans with an associated allowance
|
|
|
|
|
|
|
|
|
||||||||
Total commercial lending
|
|
$
|
527
|
|
|
$
|
386
|
|
|
$
|
98
|
|
|
$
|
371
|
|
Total consumer lending
|
|
702
|
|
|
668
|
|
|
93
|
|
|
753
|
|
||||
Total impaired loans with an associated allowance
|
|
1,229
|
|
|
1,054
|
|
|
191
|
|
|
1,124
|
|
||||
Impaired loans without an associated allowance
|
|
|
|
|
|
|
|
|
||||||||
Total commercial lending
|
|
228
|
|
|
195
|
|
|
|
|
276
|
|
|||||
Total consumer lending
|
|
1,022
|
|
|
635
|
|
|
|
|
623
|
|
|||||
Total impaired loans without an associated allowance
|
|
1,250
|
|
|
830
|
|
|
|
|
|
899
|
|
||||
Total impaired loans
|
|
$
|
2,479
|
|
|
$
|
1,884
|
|
|
$
|
191
|
|
|
$
|
2,023
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
Impaired loans with an associated allowance
|
|
|
|
|
|
|
|
|
||||||||
Total commercial lending
|
|
$
|
440
|
|
|
$
|
315
|
|
|
$
|
73
|
|
|
$
|
349
|
|
Total consumer lending
|
|
863
|
|
|
817
|
|
|
136
|
|
|
904
|
|
||||
Total impaired loans with an associated allowance
|
|
1,303
|
|
|
1,132
|
|
|
209
|
|
|
1,253
|
|
||||
Impaired loans without an associated allowance
|
|
|
|
|
|
|
|
|
||||||||
Total commercial lending
|
|
413
|
|
|
326
|
|
|
|
|
294
|
|
|||||
Total consumer lending
|
|
1,042
|
|
|
625
|
|
|
|
|
|
645
|
|
||||
Total impaired loans without an associated allowance
|
|
1,455
|
|
|
951
|
|
|
|
|
|
939
|
|
||||
Total impaired loans
|
|
$
|
2,758
|
|
|
$
|
2,083
|
|
|
$
|
209
|
|
|
$
|
2,192
|
|
(a)
|
Average recorded investment is for the years ended December 31, 2019 and 2018.
|
|
|
2019
|
2018
|
2017
|
|||||||||||||||||||||||||||||||||
At or for the year ended December 31
Dollars in millions
|
|
Commercial
Lending
|
|
|
Consumer
Lending
|
|
|
Total
|
|
|
Commercial
Lending
|
|
|
Consumer
Lending
|
|
|
Total
|
|
|
Commercial
Lending
|
|
|
Consumer
Lending
|
|
|
Total
|
|
|
|||||||||
Allowance for Loan and Lease Losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
January 1
|
|
$
|
1,663
|
|
|
$
|
966
|
|
|
$
|
2,629
|
|
|
$
|
1,582
|
|
|
$
|
1,029
|
|
|
$
|
2,611
|
|
|
$
|
1,534
|
|
|
$
|
1,055
|
|
|
$
|
2,589
|
|
|
Charge-offs
|
|
(216
|
)
|
|
(758
|
)
|
|
(974
|
)
|
|
(124
|
)
|
|
(640
|
)
|
|
(764
|
)
|
|
(221
|
)
|
|
(565
|
)
|
|
(786
|
)
|
|
|||||||||
Recoveries
|
|
78
|
|
|
254
|
|
|
332
|
|
|
99
|
|
|
245
|
|
|
344
|
|
|
116
|
|
|
213
|
|
|
329
|
|
|
|||||||||
Net (charge-offs)
|
|
(138
|
)
|
|
(504
|
)
|
|
(642
|
)
|
|
(25
|
)
|
|
(395
|
)
|
|
(420
|
)
|
|
(105
|
)
|
|
(352
|
)
|
|
(457
|
)
|
|
|||||||||
Provision for credit losses
|
|
320
|
|
|
453
|
|
|
773
|
|
|
97
|
|
|
311
|
|
|
408
|
|
|
147
|
|
|
294
|
|
|
441
|
|
|
|||||||||
Net decrease / (increase) in allowance for unfunded loan commitments and letters of credit
|
|
(34
|
)
|
|
1
|
|
|
(33
|
)
|
|
11
|
|
|
1
|
|
|
12
|
|
|
5
|
|
|
(1
|
)
|
|
4
|
|
|
|||||||||
Other
|
|
1
|
|
|
14
|
|
|
15
|
|
|
(2
|
)
|
|
20
|
|
|
18
|
|
|
1
|
|
|
33
|
|
|
34
|
|
|
|||||||||
December 31
|
|
$
|
1,812
|
|
|
$
|
930
|
|
|
$
|
2,742
|
|
|
$
|
1,663
|
|
|
$
|
966
|
|
|
$
|
2,629
|
|
|
$
|
1,582
|
|
|
$
|
1,029
|
|
|
$
|
2,611
|
|
|
TDRs individually evaluated for impairment
|
|
$
|
40
|
|
|
$
|
93
|
|
|
$
|
133
|
|
|
$
|
25
|
|
|
$
|
136
|
|
|
$
|
161
|
|
|
$
|
35
|
|
|
$
|
195
|
|
|
$
|
230
|
|
|
Other loans individually evaluated for impairment
|
|
58
|
|
|
|
|
58
|
|
|
48
|
|
|
|
|
|
48
|
|
|
41
|
|
|
|
|
41
|
|
|
|||||||||||
Loans collectively evaluated for impairment
|
|
1,714
|
|
|
563
|
|
|
2,277
|
|
|
1,590
|
|
|
555
|
|
|
2,145
|
|
|
1,506
|
|
|
561
|
|
|
2,067
|
|
|
|||||||||
Purchased impaired loans
|
|
|
|
274
|
|
|
274
|
|
|
|
|
|
275
|
|
|
275
|
|
|
|
|
|
273
|
|
|
273
|
|
|
||||||||||
December 31
|
|
$
|
1,812
|
|
|
$
|
930
|
|
|
$
|
2,742
|
|
|
$
|
1,663
|
|
|
$
|
966
|
|
|
$
|
2,629
|
|
|
$
|
1,582
|
|
|
$
|
1,029
|
|
|
$
|
2,611
|
|
|
Loan Portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
TDRs individually evaluated for impairment
|
|
$
|
361
|
|
|
$
|
1,303
|
|
|
$
|
1,664
|
|
|
$
|
409
|
|
|
$
|
1,442
|
|
|
$
|
1,851
|
|
|
$
|
409
|
|
|
$
|
1,652
|
|
|
$
|
2,061
|
|
|
Other loans individually evaluated for impairment
|
|
220
|
|
|
|
|
220
|
|
|
232
|
|
|
|
|
|
232
|
|
|
310
|
|
|
|
|
310
|
|
|
|||||||||||
Loans collectively evaluated for impairment
|
|
160,021
|
|
|
75,477
|
|
|
235,498
|
|
|
151,641
|
|
|
69,722
|
|
|
221,363
|
|
|
146,720
|
|
|
68,102
|
|
|
214,822
|
|
|
|||||||||
Fair value option loans (a)
|
|
|
|
742
|
|
|
742
|
|
|
|
|
|
782
|
|
|
782
|
|
|
|
|
869
|
|
|
869
|
|
|
|||||||||||
Purchased impaired loans
|
|
|
|
1,719
|
|
|
1,719
|
|
|
|
|
|
2,017
|
|
|
2,017
|
|
|
|
|
|
2,396
|
|
|
2,396
|
|
|
||||||||||
December 31
|
|
$
|
160,602
|
|
|
$
|
79,241
|
|
|
$
|
239,843
|
|
|
$
|
152,282
|
|
|
$
|
73,963
|
|
|
$
|
226,245
|
|
|
$
|
147,439
|
|
|
$
|
73,019
|
|
|
$
|
220,458
|
|
|
Portfolio segment ALLL as a percentage of total ALLL
|
|
66
|
%
|
|
34
|
%
|
|
100
|
%
|
|
63
|
%
|
|
37
|
%
|
|
100
|
%
|
|
61
|
%
|
|
39
|
%
|
|
100
|
%
|
|
|||||||||
Ratio of ALLL to total loans
|
|
1.13
|
%
|
|
1.17
|
%
|
|
1.14
|
%
|
|
1.09
|
%
|
|
1.31
|
%
|
|
1.16
|
%
|
|
1.07
|
%
|
|
1.41
|
%
|
|
1.18
|
%
|
|
(a)
|
Loans accounted for under the fair value option are not evaluated for impairment as these loans are accounted for at fair value. Accordingly there is no allowance recorded on these loans.
|
|
|
December 31, 2019
|
|
|
December 31, 2018
|
||||||||||||||||||||||||||||
In millions
|
|
Amortized
Cost
|
|
|
Unrealized
|
|
Fair
Value
|
|
|
|
Amortized
Cost |
|
|
Unrealized
|
|
Fair
Value |
|
||||||||||||||||
Gains
|
|
|
Losses
|
|
|
|
|
Gains
|
|
|
Losses
|
|
|
||||||||||||||||||||
Securities Available for Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. Treasury and government agencies
|
|
$
|
16,150
|
|
|
$
|
382
|
|
|
$
|
(16
|
)
|
|
$
|
16,516
|
|
|
|
$
|
18,104
|
|
|
$
|
133
|
|
|
$
|
(137
|
)
|
|
$
|
18,100
|
|
Residential mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agency
|
|
35,847
|
|
|
517
|
|
|
(43
|
)
|
|
36,321
|
|
|
|
29,413
|
|
|
104
|
|
|
(524
|
)
|
|
28,993
|
|
||||||||
Non-agency
|
|
1,515
|
|
|
302
|
|
|
(3
|
)
|
|
1,814
|
|
|
|
1,924
|
|
|
300
|
|
|
(13
|
)
|
|
2,211
|
|
||||||||
Commercial mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agency
|
|
3,094
|
|
|
42
|
|
|
(18
|
)
|
|
3,118
|
|
|
|
2,630
|
|
|
13
|
|
|
(66
|
)
|
|
2,577
|
|
||||||||
Non-agency
|
|
3,352
|
|
|
29
|
|
|
(9
|
)
|
|
3,372
|
|
|
|
2,689
|
|
|
5
|
|
|
(37
|
)
|
|
2,657
|
|
||||||||
Asset-backed
|
|
5,044
|
|
|
78
|
|
|
(8
|
)
|
|
5,114
|
|
|
|
4,933
|
|
|
59
|
|
|
(20
|
)
|
|
4,972
|
|
||||||||
Other
|
|
2,788
|
|
|
121
|
|
|
(1
|
)
|
|
2,908
|
|
|
|
3,821
|
|
|
96
|
|
|
(38
|
)
|
|
3,879
|
|
||||||||
Total securities available for sale
|
|
$
|
67,790
|
|
|
$
|
1,471
|
|
|
$
|
(98
|
)
|
|
$
|
69,163
|
|
|
|
$
|
63,514
|
|
|
$
|
710
|
|
|
$
|
(835
|
)
|
|
$
|
63,389
|
|
Securities Held to Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. Treasury and government agencies
|
|
$
|
776
|
|
|
$
|
56
|
|
|
|
|
$
|
832
|
|
|
|
$
|
758
|
|
|
$
|
28
|
|
|
$
|
(23
|
)
|
|
$
|
763
|
|
||
Residential mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agency
|
|
14,419
|
|
|
270
|
|
|
(26
|
)
|
|
14,663
|
|
|
|
15,740
|
|
|
32
|
|
|
(358
|
)
|
|
15,414
|
|
||||||||
Non-agency
|
|
133
|
|
|
7
|
|
|
|
|
140
|
|
|
|
152
|
|
|
2
|
|
|
|
|
154
|
|
||||||||||
Commercial mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agency
|
|
59
|
|
|
1
|
|
|
|
|
60
|
|
|
|
143
|
|
|
1
|
|
|
(1
|
)
|
|
143
|
|
|||||||||
Non-agency
|
|
430
|
|
|
4
|
|
|
|
|
434
|
|
|
|
488
|
|
|
1
|
|
|
(1
|
)
|
|
488
|
|
|||||||||
Asset-backed
|
|
52
|
|
|
|
|
|
|
|
52
|
|
|
|
182
|
|
|
1
|
|
|
|
|
183
|
|
||||||||||
Other
|
|
1,792
|
|
|
85
|
|
|
(14
|
)
|
|
1,863
|
|
|
|
1,849
|
|
|
53
|
|
|
(28
|
)
|
|
1,874
|
|
||||||||
Total securities held to maturity
|
|
$
|
17,661
|
|
|
$
|
423
|
|
|
$
|
(40
|
)
|
|
$
|
18,044
|
|
|
|
$
|
19,312
|
|
|
$
|
118
|
|
|
$
|
(411
|
)
|
|
$
|
19,019
|
|
|
|
Unrealized loss position
less than 12 months
|
|
Unrealized loss position
12 months or more
|
|
Total
|
||||||||||||||||||
In millions
|
|
Unrealized
Loss
|
|
|
Fair
Value
|
|
|
Unrealized
Loss
|
|
|
Fair
Value
|
|
|
Unrealized
Loss
|
|
|
Fair
Value
|
|
||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities Available for Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury and government agencies
|
|
$
|
(14
|
)
|
|
$
|
2,451
|
|
|
$
|
(2
|
)
|
|
$
|
607
|
|
|
$
|
(16
|
)
|
|
$
|
3,058
|
|
Residential mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency
|
|
(6
|
)
|
|
2,832
|
|
|
(37
|
)
|
|
4,659
|
|
|
(43
|
)
|
|
7,491
|
|
||||||
Non-agency
|
|
|
|
|
|
(3
|
)
|
|
102
|
|
|
(3
|
)
|
|
102
|
|
||||||||
Commercial mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency
|
|
(6
|
)
|
|
852
|
|
|
(12
|
)
|
|
953
|
|
|
(18
|
)
|
|
1,805
|
|
||||||
Non-agency
|
|
(4
|
)
|
|
1,106
|
|
|
(5
|
)
|
|
230
|
|
|
(9
|
)
|
|
1,336
|
|
||||||
Asset-backed
|
|
(3
|
)
|
|
660
|
|
|
(5
|
)
|
|
561
|
|
|
(8
|
)
|
|
1,221
|
|
||||||
Other
|
|
|
|
|
|
(1
|
)
|
|
403
|
|
|
(1
|
)
|
|
403
|
|
||||||||
Total securities available for sale
|
|
$
|
(33
|
)
|
|
$
|
7,901
|
|
|
$
|
(65
|
)
|
|
$
|
7,515
|
|
|
$
|
(98
|
)
|
|
$
|
15,416
|
|
Securities Held to Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage-backed - Agency
|
|
|
|
|
|
(26
|
)
|
|
2,960
|
|
|
(26
|
)
|
|
2,960
|
|
||||||||
Other
|
|
(1
|
)
|
|
22
|
|
|
(13
|
)
|
|
105
|
|
|
(14
|
)
|
|
127
|
|
||||||
Total securities held to maturity
|
|
$
|
(1
|
)
|
|
$
|
22
|
|
|
$
|
(39
|
)
|
|
$
|
3,065
|
|
|
$
|
(40
|
)
|
|
$
|
3,087
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities Available for Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury and government agencies
|
|
$
|
(21
|
)
|
|
$
|
4,125
|
|
|
$
|
(116
|
)
|
|
$
|
5,423
|
|
|
$
|
(137
|
)
|
|
$
|
9,548
|
|
Residential mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency
|
|
(57
|
)
|
|
4,823
|
|
|
(467
|
)
|
|
13,830
|
|
|
(524
|
)
|
|
18,653
|
|
||||||
Non-agency
|
|
(1
|
)
|
|
74
|
|
|
(12
|
)
|
|
310
|
|
|
(13
|
)
|
|
384
|
|
||||||
Commercial mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency
|
|
(1
|
)
|
|
65
|
|
|
(65
|
)
|
|
1,516
|
|
|
(66
|
)
|
|
1,581
|
|
||||||
Non-agency
|
|
(23
|
)
|
|
1,809
|
|
|
(14
|
)
|
|
498
|
|
|
(37
|
)
|
|
2,307
|
|
||||||
Asset-backed
|
|
(11
|
)
|
|
2,149
|
|
|
(9
|
)
|
|
1,032
|
|
|
(20
|
)
|
|
3,181
|
|
||||||
Other
|
|
(12
|
)
|
|
868
|
|
|
(26
|
)
|
|
1,293
|
|
|
(38
|
)
|
|
2,161
|
|
||||||
Total securities available for sale
|
|
$
|
(126
|
)
|
|
$
|
13,913
|
|
|
$
|
(709
|
)
|
|
$
|
23,902
|
|
|
$
|
(835
|
)
|
|
$
|
37,815
|
|
Securities Held to Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury and government agencies
|
|
|
|
|
|
|
|
$
|
(23
|
)
|
|
$
|
446
|
|
|
$
|
(23
|
)
|
|
$
|
446
|
|
||
Residential mortgage-backed - Agency
|
|
$
|
(58
|
)
|
|
$
|
4,191
|
|
|
(300
|
)
|
|
7,921
|
|
|
(358
|
)
|
|
12,112
|
|
||||
Commercial mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency
|
|
(1
|
)
|
|
88
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
88
|
|
||||||
Non-agency
|
|
(1
|
)
|
|
152
|
|
|
|
|
|
|
(1
|
)
|
|
152
|
|
||||||||
Other
|
|
(2
|
)
|
|
75
|
|
|
(26
|
)
|
|
123
|
|
|
(28
|
)
|
|
198
|
|
||||||
Total securities held to maturity
|
|
$
|
(62
|
)
|
|
$
|
4,506
|
|
|
$
|
(349
|
)
|
|
$
|
8,490
|
|
|
$
|
(411
|
)
|
|
$
|
12,996
|
|
Year ended December 31
In millions
|
Gross Gains
|
|
|
Gross Losses
|
|
|
Net Gains
|
|
|
Tax Expense
|
|
|
||||
2019
|
$
|
69
|
|
|
$
|
(21
|
)
|
|
$
|
48
|
|
|
$
|
10
|
|
|
2018
|
$
|
57
|
|
|
$
|
(57
|
)
|
|
|
|
|
|
|
|
||
2017
|
$
|
38
|
|
|
$
|
(31
|
)
|
|
$
|
7
|
|
|
$
|
2
|
|
|
December 31, 2019
|
|
1 Year or
Less |
|
|
After 1 Year
through 5 Years
|
|
|
After 5 Years
through 10 Years
|
|
|
After 10
Years
|
|
|
Total
|
|
|||||
Dollars in millions
|
|
|
|
|
|
|||||||||||||||
Securities Available for Sale
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury and government agencies
|
|
$
|
2,198
|
|
|
$
|
10,189
|
|
|
$
|
2,984
|
|
|
$
|
779
|
|
|
$
|
16,150
|
|
Residential mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
|
2
|
|
|
65
|
|
|
1,194
|
|
|
34,586
|
|
|
35,847
|
|
|||||
Non-agency
|
|
|
|
|
|
|
|
1,515
|
|
|
1,515
|
|
||||||||
Commercial mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
|
8
|
|
|
565
|
|
|
490
|
|
|
2,031
|
|
|
3,094
|
|
|||||
Non-agency
|
|
|
|
75
|
|
|
350
|
|
|
2,927
|
|
|
3,352
|
|
||||||
Asset-backed
|
|
8
|
|
|
2,511
|
|
|
1,267
|
|
|
1,258
|
|
|
5,044
|
|
|||||
Other
|
|
337
|
|
|
1,314
|
|
|
486
|
|
|
651
|
|
|
2,788
|
|
|||||
Total securities available for sale at amortized cost
|
|
$
|
2,553
|
|
|
$
|
14,719
|
|
|
$
|
6,771
|
|
|
$
|
43,747
|
|
|
$
|
67,790
|
|
Fair value
|
|
$
|
2,573
|
|
|
$
|
14,881
|
|
|
$
|
6,924
|
|
|
$
|
44,785
|
|
|
$
|
69,163
|
|
Weighted-average yield, GAAP basis
|
|
2.94
|
%
|
|
2.28
|
%
|
|
2.66
|
%
|
|
3.19
|
%
|
|
2.93
|
%
|
|||||
Securities Held to Maturity
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury and government agencies
|
|
|
|
$
|
198
|
|
|
$
|
300
|
|
|
$
|
278
|
|
|
$
|
776
|
|
||
Residential mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
|
|
|
55
|
|
|
516
|
|
|
13,848
|
|
|
14,419
|
|
||||||
Non-agency
|
|
|
|
|
|
|
|
133
|
|
|
133
|
|
||||||||
Commercial mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
|
|
|
10
|
|
|
|
|
49
|
|
|
59
|
|
|||||||
Non-agency
|
|
|
|
|
|
|
|
430
|
|
|
430
|
|
||||||||
Asset-backed
|
|
|
|
6
|
|
|
19
|
|
|
27
|
|
|
52
|
|
||||||
Other
|
|
$
|
45
|
|
|
785
|
|
|
625
|
|
|
337
|
|
|
1,792
|
|
||||
Total securities held to maturity at amortized cost
|
|
$
|
45
|
|
|
$
|
1,054
|
|
|
$
|
1,460
|
|
|
$
|
15,102
|
|
|
$
|
17,661
|
|
Fair value
|
|
$
|
45
|
|
|
$
|
1,089
|
|
|
$
|
1,543
|
|
|
$
|
15,367
|
|
|
$
|
18,044
|
|
Weighted-average yield, GAAP basis
|
|
3.75
|
%
|
|
3.59
|
%
|
|
3.53
|
%
|
|
3.32
|
%
|
|
3.35
|
%
|
In millions
|
December 31
2019 |
|
|
December 31
2018 |
|
||
Pledged to others
|
$
|
14,609
|
|
|
$
|
7,597
|
|
Accepted from others:
|
|
|
|
||||
Permitted by contract or custom to sell or repledge (a)
|
$
|
2,349
|
|
|
$
|
6,905
|
|
Permitted amount repledged to others
|
$
|
360
|
|
|
$
|
923
|
|
(a)
|
Includes $2.0 billion and $6.0 billion in fair value of securities accepted from others to collateralize short-term investments in resale agreements that were not repledged to others at December 31, 2019 and December 31, 2018, respectively.
|
•
|
Level 1: Fair value is determined using a quoted price in an active market for identical assets or liabilities. Level 1 assets and liabilities may include debt securities, equity securities and listed derivative contracts that are traded in an active exchange market, and certain U.S. Treasury securities that are actively traded in over-the-counter markets.
|
•
|
Level 2: Fair value is estimated using inputs other than quoted prices included within Level 1 that are observable for assets or liabilities, either directly or indirectly. The majority of Level 2 assets and liabilities include debt securities and listed derivative contracts with quoted prices that are traded in markets that are not active, and certain debt and equity securities and over-the-counter derivative contracts whose fair value is determined using a pricing model without significant unobservable inputs.
|
•
|
Level 3: Fair value is estimated using unobservable inputs that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models and discounted cash flow methodologies, or similar techniques for which the significant valuation inputs are not observable and the determination of fair value requires significant management judgment or estimation.
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
||||||||||||||||||||||||||||
In millions
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
Fair Value
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
Fair Value
|
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Residential mortgage loans held for sale
|
|
|
$
|
817
|
|
|
$
|
2
|
|
|
$
|
819
|
|
|
|
|
|
$
|
493
|
|
|
$
|
2
|
|
|
$
|
495
|
|
|
||||
Commercial mortgage loans held for sale
|
|
|
182
|
|
|
64
|
|
|
246
|
|
|
|
|
|
309
|
|
|
87
|
|
|
396
|
|
|
||||||||||
Securities available for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. Treasury and government agencies
|
$
|
16,236
|
|
|
280
|
|
|
|
|
16,516
|
|
|
|
$
|
17,753
|
|
|
347
|
|
|
|
|
18,100
|
|
|
||||||||
Residential mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agency
|
|
|
36,321
|
|
|
|
|
36,321
|
|
|
|
|
|
28,993
|
|
|
|
|
28,993
|
|
|
||||||||||||
Non-agency
|
|
|
73
|
|
|
1,741
|
|
|
1,814
|
|
|
|
|
|
83
|
|
|
2,128
|
|
|
2,211
|
|
|
||||||||||
Commercial mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agency
|
|
|
3,118
|
|
|
|
|
3,118
|
|
|
|
|
|
2,577
|
|
|
|
|
2,577
|
|
|
||||||||||||
Non-agency
|
|
|
3,372
|
|
|
|
|
3,372
|
|
|
|
|
|
2,657
|
|
|
|
|
2,657
|
|
|
||||||||||||
Asset-backed
|
|
|
4,874
|
|
|
240
|
|
|
5,114
|
|
|
|
|
|
4,698
|
|
|
274
|
|
|
4,972
|
|
|
||||||||||
Other
|
|
|
2,834
|
|
|
74
|
|
|
2,908
|
|
|
|
|
|
3,795
|
|
|
84
|
|
|
3,879
|
|
|
||||||||||
Total securities available for sale
|
16,236
|
|
|
50,872
|
|
|
2,055
|
|
|
69,163
|
|
|
|
17,753
|
|
|
43,150
|
|
|
2,486
|
|
|
63,389
|
|
|
||||||||
Loans
|
|
|
442
|
|
|
300
|
|
|
742
|
|
|
|
|
|
510
|
|
|
272
|
|
|
782
|
|
|
||||||||||
Equity investments (a)
|
855
|
|
|
|
|
1,276
|
|
|
2,421
|
|
|
|
751
|
|
|
|
|
1,255
|
|
|
2,209
|
|
|
||||||||||
Residential mortgage servicing rights
|
|
|
|
|
995
|
|
|
995
|
|
|
|
|
|
|
|
1,257
|
|
|
1,257
|
|
|
||||||||||||
Commercial mortgage servicing rights
|
|
|
|
|
649
|
|
|
649
|
|
|
|
|
|
|
|
726
|
|
|
726
|
|
|
||||||||||||
Trading securities (b)
|
433
|
|
|
2,787
|
|
|
|
|
3,220
|
|
|
|
2,137
|
|
|
1,777
|
|
|
2
|
|
|
3,916
|
|
|
|||||||||
Financial derivatives (b) (c)
|
|
|
3,448
|
|
|
54
|
|
|
3,502
|
|
|
|
3
|
|
|
2,053
|
|
|
25
|
|
|
2,081
|
|
|
|||||||||
Other assets
|
339
|
|
|
131
|
|
|
|
|
470
|
|
|
|
291
|
|
|
157
|
|
|
45
|
|
|
493
|
|
|
|||||||||
Total assets (d)
|
$
|
17,863
|
|
|
$
|
58,679
|
|
|
$
|
5,395
|
|
|
$
|
82,227
|
|
|
|
$
|
20,935
|
|
|
$
|
48,449
|
|
|
$
|
6,157
|
|
|
$
|
75,744
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other borrowed funds
|
$
|
385
|
|
|
$
|
126
|
|
|
$
|
7
|
|
|
$
|
518
|
|
|
|
$
|
868
|
|
|
$
|
132
|
|
|
$
|
7
|
|
|
$
|
1,007
|
|
|
Financial derivatives (c) (e)
|
|
|
1,819
|
|
|
200
|
|
|
2,019
|
|
|
|
1
|
|
|
2,021
|
|
|
268
|
|
|
2,290
|
|
|
|||||||||
Other liabilities
|
|
|
|
|
137
|
|
|
137
|
|
|
|
|
|
|
|
58
|
|
|
58
|
|
|
||||||||||||
Total liabilities (f)
|
$
|
385
|
|
|
$
|
1,945
|
|
|
$
|
344
|
|
|
$
|
2,674
|
|
|
|
$
|
869
|
|
|
$
|
2,153
|
|
|
$
|
333
|
|
|
$
|
3,355
|
|
|
(a)
|
Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
|
(b)
|
Included in Other assets on the Consolidated Balance Sheet.
|
(c)
|
Amounts at December 31, 2019 and 2018 are presented gross and are not reduced by the impact of legally enforceable master netting agreements that allow us to net positive and negative positions and cash collateral held or placed with the same counterparty. See Note 13 Financial Derivatives for additional information related to derivative offsetting.
|
(d)
|
Total assets at fair value as a percentage of total consolidated assets was 20% at both December 31, 2019 and 2018. Level 3 assets as a percentage of total assets at fair value was 7% and 8% as of December 31, 2019 and 2018, respectively. Level 3 assets as a percentage of total consolidated assets was 1% and 2% as of December 31, 2019 and 2018, respectively.
|
(e)
|
Included in Other liabilities on the Consolidated Balance Sheet.
|
(f)
|
Total liabilities at fair value as a percentage of total consolidated liabilities was 1% at both December 31, 2019 and 2018. Level 3 liabilities as a percentage of total liabilities at fair value was 13% and 10% as of December 31, 2019 and 2018, respectively. Level 3 liabilities as a percentage of total consolidated liabilities was less than 1% at both December 31, 2019 and 2018.
|
|
|
Total realized / unrealized
gains or losses for the period (a) |
|
|
|
|
|
|
|
|
Unrealized gains / losses on assets and liabilities held on Consolidated Balance Sheet at December 31, 2019 (a) (b)
|
|||||||||||||||||||||||||
Level 3 Instruments Only
In millions |
Fair
Value Dec. 31, 2018 |
|
Included in
Earnings |
|
|
Included
in Other comprehensive income |
|
Purchases
|
|
Sales
|
|
Issuances
|
|
Settlements
|
|
Transfers
into Level 3 |
|
Transfers
out of Level 3 |
|
|
Fair Value Dec. 31, 2019
|
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Residential mortgage loans
held for sale |
$
|
2
|
|
|
|
|
$
|
5
|
|
$
|
(2
|
)
|
|
$
|
(2
|
)
|
$
|
16
|
|
$
|
(17
|
)
|
(c)
|
$
|
2
|
|
|
|
||||||||
Commercial mortgage
loans held for sale |
87
|
|
$
|
1
|
|
|
|
|
|
|
(24
|
)
|
|
|
|
64
|
|
$
|
1
|
|
|
|||||||||||||||
Securities available for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Residential mortgage-
backed non-agency |
2,128
|
|
73
|
|
|
$
|
15
|
|
|
|
|
(475
|
)
|
|
|
|
1,741
|
|
|
|
||||||||||||||||
Asset-backed
|
274
|
|
6
|
|
|
3
|
|
|
|
|
(43
|
)
|
|
|
|
240
|
|
|
|
|||||||||||||||||
Other
|
84
|
|
1
|
|
|
(6
|
)
|
9
|
|
(3
|
)
|
|
(11
|
)
|
|
|
|
|
74
|
|
|
|
||||||||||||||
Total securities
available for sale |
2,486
|
|
80
|
|
|
12
|
|
9
|
|
(3
|
)
|
|
|
(529
|
)
|
|
|
|
|
|
2,055
|
|
|
|
|
|||||||||||
Loans
|
272
|
|
13
|
|
|
|
142
|
|
(42
|
)
|
|
(54
|
)
|
|
(31
|
)
|
(c)
|
300
|
|
7
|
|
|
||||||||||||||
Equity investments
|
1,255
|
|
262
|
|
|
|
374
|
|
(615
|
)
|
|
|
|
|
|
1,276
|
|
57
|
|
|
||||||||||||||||
Residential mortgage
servicing rights |
1,257
|
|
(250
|
)
|
|
|
114
|
|
|
$
|
36
|
|
(162
|
)
|
|
|
|
995
|
|
(235
|
)
|
|
||||||||||||||
Commercial mortgage
servicing rights |
726
|
|
(87
|
)
|
|
|
103
|
|
|
53
|
|
(146
|
)
|
|
|
|
649
|
|
(87
|
)
|
|
|||||||||||||||
Trading securities
|
2
|
|
|
|
|
|
|
|
(2
|
)
|
|
|
|
|
|
|
|
|||||||||||||||||||
Financial derivatives
|
25
|
|
70
|
|
|
|
22
|
|
|
|
(63
|
)
|
|
|
|
54
|
|
94
|
|
|
||||||||||||||||
Other assets
|
45
|
|
|
|
|
|
|
|
(45
|
)
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total assets
|
$
|
6,157
|
|
$
|
89
|
|
|
$
|
12
|
|
$
|
769
|
|
$
|
(662
|
)
|
$
|
89
|
|
$
|
(1,027
|
)
|
$
|
16
|
|
$
|
(48
|
)
|
|
$
|
5,395
|
|
$
|
(163
|
)
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Other borrowed funds
|
$
|
7
|
|
|
|
|
|
|
$
|
52
|
|
$
|
(52
|
)
|
|
|
|
$
|
7
|
|
|
|
||||||||||||||
Financial derivatives
|
268
|
|
$
|
101
|
|
|
|
|
$
|
10
|
|
|
(179
|
)
|
|
|
|
|
200
|
|
$
|
112
|
|
|
||||||||||||
Other liabilities
|
58
|
|
68
|
|
|
|
$
|
16
|
|
2
|
|
81
|
|
(88
|
)
|
|
|
|
137
|
|
49
|
|
|
|||||||||||||
Total liabilities
|
$
|
333
|
|
$
|
169
|
|
|
|
|
$
|
16
|
|
$
|
12
|
|
$
|
133
|
|
$
|
(319
|
)
|
|
|
|
|
|
$
|
344
|
|
$
|
161
|
|
|
|||
Net gains (losses)
|
|
|
$
|
(80
|
)
|
(d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(324
|
)
|
(e)
|
|
|
Total realized / unrealized
gains or losses for the period (a) |
|
|
|
|
|
|
|
|
|
Unrealized gains / losses on assets and liabilities held on Consolidated Balance Sheet at December 31, 2018 (a) (b)
|
|||||||||||||||||||||||||
Level 3 Instruments Only
In millions |
Fair Value Dec. 31, 2017
|
|
Included in
Earnings |
|
Included
in Other comprehensive income |
|
Purchases
|
|
Sales
|
|
Issuances
|
|
Settlements
|
|
Transfers
into Level 3 |
|
|
Transfers
out of Level 3 |
|
|
Fair Value Dec. 31, 2018
|
|
|||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Residential mortgage loans
held for sale |
$
|
3
|
|
|
|
|
$
|
4
|
|
$
|
(3
|
)
|
|
|
$
|
14
|
|
|
$
|
(16
|
)
|
(c)
|
$
|
2
|
|
|
|
||||||||||
Commercial mortgage
loans held for sale |
107
|
|
|
|
|
|
|
|
|
$
|
(20
|
)
|
|
|
|
|
87
|
|
$
|
1
|
|
|
|||||||||||||||
Securities available for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Residential mortgage-
backed non-agency |
2,661
|
|
$
|
53
|
|
|
$
|
(24
|
)
|
|
|
|
(562
|
)
|
|
|
|
|
2,128
|
|
|
|
|
||||||||||||||
Asset-backed
|
332
|
|
5
|
|
|
(7
|
)
|
|
|
|
(56
|
)
|
|
|
|
|
274
|
|
|
|
|||||||||||||||||
Other
|
87
|
|
5
|
|
|
6
|
|
7
|
|
|
|
(16
|
)
|
|
|
(5
|
)
|
|
84
|
|
|
|
|||||||||||||||
Total securities
available for sale |
3,080
|
|
63
|
|
|
(25
|
)
|
7
|
|
|
|
|
|
(634
|
)
|
|
|
|
(5
|
)
|
|
2,486
|
|
|
|
||||||||||||
Loans
|
298
|
|
13
|
|
|
|
102
|
|
(25
|
)
|
|
(74
|
)
|
10
|
|
|
(52
|
)
|
(c)
|
272
|
|
2
|
|
|
|||||||||||||
Equity investments
|
1,036
|
|
204
|
|
|
|
411
|
|
(396
|
)
|
|
|
|
|
|
|
1,255
|
|
110
|
|
|
||||||||||||||||
Residential mortgage
servicing rights |
1,164
|
|
90
|
|
|
|
129
|
|
|
$
|
44
|
|
(170
|
)
|
|
|
|
|
1,257
|
|
83
|
|
|
||||||||||||||
Commercial mortgage
servicing rights |
668
|
|
51
|
|
|
|
93
|
|
|
57
|
|
(143
|
)
|
|
|
|
|
726
|
|
51
|
|
|
|||||||||||||||
Trading securities
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
|
|
|
||||||||||||||||||||
Financial derivatives
|
10
|
|
59
|
|
|
|
4
|
|
|
|
(48
|
)
|
|
|
|
|
25
|
|
47
|
|
|
||||||||||||||||
Other assets
|
107
|
|
(14
|
)
|
|
|
|
|
|
(48
|
)
|
|
|
|
|
45
|
|
(14
|
)
|
|
|||||||||||||||||
Total assets
|
$
|
6,475
|
|
$
|
466
|
|
|
$
|
(25
|
)
|
$
|
750
|
|
$
|
(424
|
)
|
$
|
101
|
|
$
|
(1,137
|
)
|
$
|
24
|
|
|
$
|
(73
|
)
|
|
$
|
6,157
|
|
$
|
280
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Other borrowed funds
|
$
|
11
|
|
|
|
|
|
|
$
|
64
|
|
$
|
(68
|
)
|
|
|
|
|
$
|
7
|
|
|
|
||||||||||||||
Financial derivatives
|
487
|
|
$
|
(53
|
)
|
|
|
|
$
|
12
|
|
|
(178
|
)
|
|
|
|
|
268
|
|
$
|
(42
|
)
|
|
|||||||||||||
Other liabilities
|
33
|
|
15
|
|
|
|
$
|
12
|
|
|
103
|
|
(105
|
)
|
|
|
|
|
58
|
|
13
|
|
|
||||||||||||||
Total liabilities
|
$
|
531
|
|
$
|
(38
|
)
|
|
|
|
$
|
12
|
|
$
|
12
|
|
$
|
167
|
|
$
|
(351
|
)
|
|
|
|
|
|
|
$
|
333
|
|
$
|
(29
|
)
|
|
|||
Net gains (losses)
|
|
|
$
|
504
|
|
(d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
309
|
|
(e)
|
(a)
|
Losses for assets are bracketed while losses for liabilities are not.
|
(b)
|
The amount of the total gains or losses for the period included in earnings that is attributable to the change in unrealized gains or losses related to those assets and liabilities held at the end of the reporting period.
|
(c)
|
Residential mortgage loan transfers out of Level 3 are primarily driven by residential mortgage loans transferring to OREO as well as reclassification of mortgage loans held for sale to held for investment.
|
(d)
|
Net gains (losses) realized and unrealized included in earnings related to Level 3 assets and liabilities included amortization and accretion. The amortization and accretion amounts were included in Interest income on the Consolidated Income Statement and the remaining net gains (losses) realized and unrealized were included in Noninterest income on the Consolidated Income Statement.
|
(e)
|
Net unrealized gains (losses) related to assets and liabilities held at the end of the reporting period were included in Noninterest income on the Consolidated Income Statement.
|
Level 3 Instruments Only
Dollars in millions
|
Fair Value
|
Valuation Techniques
|
Unobservable Inputs
|
Range (Weighted Average)
|
||
Commercial mortgage loans held for sale
|
$
|
64
|
|
Discounted cash flow
|
Spread over the benchmark curve (a)
|
530bps - 2,935bps (1,889bps)
|
Residential mortgage-backed
non-agency securities |
1,741
|
|
Priced by a third-party vendor using a discounted cash flow pricing model
|
Constant prepayment rate
|
1.0% - 36.2% (9.9%)
|
|
Constant default rate
|
0.0% - 14.1% (4.3%)
|
|||||
Loss severity
|
26.6% - 95.7% (51.9%)
|
|||||
Spread over the benchmark curve (a)
|
188bps weighted-average
|
|||||
Asset-backed securities
|
240
|
|
Priced by a third-party vendor using a discounted cash flow pricing model
|
Constant prepayment rate
|
1.0% - 22.0% (7.5%)
|
|
Constant default rate
|
1.0% - 7.2% (3.4%)
|
|||||
Loss severity
|
30.0% - 100.0% (57.6%)
|
|||||
Spread over the benchmark curve (a)
|
215bps weighted-average
|
|||||
Loans
|
184
|
|
Consensus pricing (b)
|
Cumulative default rate
|
3.6% - 100.0% (76.7%)
|
|
Loss severity
|
0.0% - 100.0% (14.5%)
|
|||||
Discount rate
|
5.0% - 8.0% (5.2%)
|
|||||
|
72
|
|
Discounted cash flow
|
Loss severity
|
8.0% weighted-average
|
|
Discount rate
|
4.8% weighted-average
|
|||||
|
44
|
|
Consensus pricing (b)
|
Credit and Liquidity discount
|
0.0% - 99.0% (63.4%)
|
|
Equity investments
|
1,276
|
|
Multiple of adjusted earnings
|
Multiple of earnings
|
5.0x - 16.5x (8.5x)
|
|
Residential mortgage servicing rights
|
995
|
|
Discounted cash flow
|
Constant prepayment rate
|
0.0% - 53.8% (13.5%)
|
|
Spread over the benchmark curve (a)
|
320bps - 1,435bps (769bps)
|
|||||
Commercial mortgage servicing rights
|
649
|
|
Discounted cash flow
|
Constant prepayment rate
|
3.5% - 18.1% (4.6%)
|
|
Discount rate
|
5.6% - 8.1% (7.9%)
|
|||||
Financial derivatives - Swaps related to
sales of certain Visa Class B common shares |
(176
|
)
|
Discounted cash flow
|
Estimated conversion factor of Visa Class B shares into Class A shares
|
162.3% weighted-average
|
|
Estimated annual growth rate of Visa Class A share price
|
16.0%
|
|||||
Estimated length of litigation resolution date
|
Q1 2021
|
|||||
Insignificant Level 3 assets, net of
liabilities (c) |
(38
|
)
|
|
|
|
|
Total Level 3 assets, net of liabilities (d)
|
$
|
5,051
|
|
|
|
|
Level 3 Instruments Only
Dollars in millions
|
Fair Value
|
Valuation Techniques
|
Unobservable Inputs
|
Range (Weighted Average)
|
||
Commercial mortgage loans held for sale
|
$
|
87
|
|
Discounted cash flow
|
Spread over the benchmark curve (a)
|
535bps - 1,900bps (1,217bps)
|
Residential mortgage-backed
non-agency securities |
2,128
|
|
Priced by a third-party vendor using a discounted cash flow pricing model
|
Constant prepayment rate
|
1.0% - 33.0% (11.8%)
|
|
Constant default rate
|
0.0% - 18.8% (5.1%)
|
|||||
Loss severity
|
10.0% - 100.0% (50.8%)
|
|||||
Spread over the benchmark curve (a)
|
216bps weighted-average
|
|||||
Asset-backed securities
|
274
|
|
Priced by a third-party vendor using a discounted cash flow pricing model
|
Constant prepayment rate
|
1.0% - 19.0% (8.5%)
|
|
Constant default rate
|
1.0% - 18.5% (4.0%)
|
|||||
Loss severity
|
15.0% - 100.0% (63.8%)
|
|||||
Spread over the benchmark curve (a)
|
198bps weighted-average
|
|||||
Loans
|
129
|
|
Consensus pricing (b)
|
Cumulative default rate
|
11.0% - 100.0% (81.8%)
|
|
Loss severity
|
0.0% - 100.0% (17.2%)
|
|||||
Discount rate
|
5.5% - 8.3% (5.8%)
|
|||||
|
90
|
|
Discounted cash flow
|
Loss severity
|
8.0% weighted-average
|
|
Discount rate
|
5.8% weighted-average
|
|||||
|
53
|
|
Consensus pricing (b)
|
Credit and Liquidity discount
|
0.0% - 99.0% (61.3%)
|
|
Equity investments
|
1,255
|
|
Multiple of adjusted earnings
|
Multiple of earnings
|
4.5x - 16.0x (8.4x)
|
|
Residential mortgage servicing rights
|
1,257
|
|
Discounted cash flow
|
Constant prepayment rate
|
0.0% - 54.5% (8.7%)
|
|
Spread over the benchmark curve (a)
|
492bps - 1,455bps (806bps)
|
|||||
Commercial mortgage servicing rights
|
726
|
|
Discounted cash flow
|
Constant prepayment rate
|
4.6% - 14.7% (5.7%)
|
|
Discount rate
|
6.9% - 8.5% (8.4%)
|
|||||
Financial derivatives - Swaps related to
sales of certain Visa Class B common shares |
(210
|
)
|
Discounted cash flow
|
Estimated conversion factor of Visa Class B shares into Class A shares
|
163.0% weighted-average
|
|
Estimated annual growth rate of Visa Class A share price
|
16.0%
|
|||||
Estimated length of litigation resolution date
|
Q4 2020
|
|||||
Insignificant Level 3 assets, net of
liabilities (c) |
35
|
|
|
|
|
|
Total Level 3 assets, net of liabilities (d)
|
$
|
5,824
|
|
|
|
|
(a)
|
The assumed yield spread over the benchmark curve for each instrument is generally intended to incorporate non-interest-rate risks, such as credit and liquidity risks.
|
(b)
|
Consensus pricing refers to fair value estimates that are generally internally developed using information such as dealer quotes or other third-party provided valuations or comparable asset prices.
|
(c)
|
Represents the aggregate amount of Level 3 assets and liabilities measured at fair value on a recurring basis that are individually and in the aggregate insignificant. The amount includes certain financial derivative assets and liabilities, trading securities, other securities, residential mortgage loans held for sale, other assets, other borrowed funds and other liabilities.
|
(d)
|
Consisted of total Level 3 assets of $5.4 billion and total Level 3 liabilities of $.3 billion as of December 31, 2019 and $6.1 billion and $.3 billion as of December 31, 2018, respectively.
|
Year ended December 31
In millions
|
Fair Value
|
Gains (Losses)
|
||||||||||||||||||
2019
|
|
2018
|
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonaccrual loans
|
$
|
136
|
|
$
|
128
|
|
|
|
$
|
(76
|
)
|
|
$
|
(28
|
)
|
|
$
|
(8
|
)
|
|
OREO and foreclosed assets
|
57
|
|
59
|
|
|
|
(5
|
)
|
|
(7
|
)
|
|
(10
|
)
|
|
|||||
Long-lived assets
|
5
|
|
11
|
|
|
|
(3
|
)
|
|
(4
|
)
|
|
(168
|
)
|
|
|||||
Total assets
|
$
|
198
|
|
$
|
198
|
|
|
|
$
|
(84
|
)
|
|
$
|
(39
|
)
|
|
$
|
(186
|
)
|
|
(a)
|
All Level 3 for the periods presented.
|
(b)
|
Valuation techniques applied were fair value of property or collateral.
|
(c)
|
Unobservable inputs used were appraised value/sales price, broker opinions or projected income/required improvement costs. Additional quantitative information was not meaningful for the periods presented.
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||
In millions
|
Fair Value
|
|
Aggregate Unpaid Principal Balance
|
|
Difference
|
|
|
Fair Value
|
|
Aggregate Unpaid Principal Balance
|
|
Difference
|
|
||||||
Assets
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage loans held for sale
|
|
|
|
|
|
|
|
||||||||||||
Performing loans
|
$
|
813
|
|
$
|
792
|
|
$
|
21
|
|
|
$
|
489
|
|
$
|
472
|
|
$
|
17
|
|
Accruing loans 90 days or more past due
|
2
|
|
2
|
|
|
|
2
|
|
2
|
|
|
|
|||||||
Nonaccrual loans
|
4
|
|
4
|
|
|
|
|
4
|
|
4
|
|
|
|
||||||
Total
|
$
|
819
|
|
$
|
798
|
|
$
|
21
|
|
|
$
|
495
|
|
$
|
478
|
|
$
|
17
|
|
Commercial mortgage loans held for sale (a)
|
|
|
|
|
|
|
|
||||||||||||
Performing loans
|
$
|
245
|
|
$
|
263
|
|
$
|
(18
|
)
|
|
$
|
396
|
|
$
|
411
|
|
$
|
(15
|
)
|
Nonaccrual loans
|
1
|
|
2
|
|
(1
|
)
|
|
|
|
|
|
|
|
||||||
Total
|
$
|
246
|
|
$
|
265
|
|
$
|
(19
|
)
|
|
$
|
396
|
|
$
|
411
|
|
$
|
(15
|
)
|
Residential mortgage loans
|
|
|
|
|
|
|
|
||||||||||||
Performing loans
|
$
|
291
|
|
$
|
304
|
|
$
|
(13
|
)
|
|
$
|
279
|
|
$
|
298
|
|
$
|
(19
|
)
|
Accruing loans 90 days or more past due
|
285
|
|
296
|
|
(11
|
)
|
|
321
|
|
329
|
|
(8
|
)
|
||||||
Nonaccrual loans
|
166
|
|
265
|
|
(99
|
)
|
|
182
|
|
292
|
|
(110
|
)
|
||||||
Total
|
$
|
742
|
|
$
|
865
|
|
$
|
(123
|
)
|
|
$
|
782
|
|
$
|
919
|
|
$
|
(137
|
)
|
Other assets
|
$
|
132
|
|
$
|
125
|
|
$
|
7
|
|
|
$
|
156
|
|
$
|
176
|
|
$
|
(20
|
)
|
Liabilities
|
|
|
|
|
|
|
|
||||||||||||
Other borrowed funds
|
$
|
63
|
|
$
|
64
|
|
$
|
(1
|
)
|
|
$
|
64
|
|
$
|
65
|
|
$
|
(1
|
)
|
(a)
|
There were no accruing loans 90 days or more past due within this category at December 31, 2019 or December 31, 2018.
|
Year ended December 31
In millions
|
Gains (Losses)
|
|
||||||||||
2019
|
|
|
2018
|
|
|
2017
|
|
|
||||
Assets
|
|
|
|
|
|
|
||||||
Residential mortgage loans held for sale
|
$
|
84
|
|
|
$
|
38
|
|
|
$
|
121
|
|
|
Commercial mortgage loans held for sale
|
$
|
61
|
|
|
$
|
67
|
|
|
$
|
87
|
|
|
Residential mortgage loans
|
$
|
23
|
|
|
$
|
24
|
|
|
$
|
27
|
|
|
Other assets
|
$
|
40
|
|
|
$
|
(40
|
)
|
|
$
|
60
|
|
|
(a)
|
The impact on earnings of offsetting hedged items or hedging instruments is not reflected in these amounts.
|
In millions
|
Carrying
Amount
|
|
|
Fair Value
|
|
|||||||||||||||
Total
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
|||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
$
|
5,061
|
|
|
$
|
5,061
|
|
|
$
|
5,061
|
|
|
|
|
|
|
||||
Interest-earning deposits with banks
|
23,413
|
|
|
23,413
|
|
|
|
|
$
|
23,413
|
|
|
|
|
||||||
Securities held to maturity
|
17,661
|
|
|
18,044
|
|
|
832
|
|
|
17,039
|
|
|
$
|
173
|
|
|
||||
Net loans (excludes leases)
|
229,205
|
|
|
232,670
|
|
|
|
|
|
|
232,670
|
|
|
|||||||
Other assets
|
5,700
|
|
|
5,700
|
|
|
|
|
5,692
|
|
|
8
|
|
|
||||||
Total assets
|
$
|
281,040
|
|
|
$
|
284,888
|
|
|
$
|
5,893
|
|
|
$
|
46,144
|
|
|
$
|
232,851
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Time deposits
|
$
|
21,663
|
|
|
$
|
21,425
|
|
|
|
|
$
|
21,425
|
|
|
|
|
||||
Borrowed funds
|
59,745
|
|
|
60,399
|
|
|
|
|
58,622
|
|
|
$
|
1,777
|
|
|
|||||
Unfunded loan commitments and letters of credit
|
318
|
|
|
318
|
|
|
|
|
|
|
318
|
|
|
|||||||
Other liabilities
|
506
|
|
|
506
|
|
|
|
|
506
|
|
|
|
|
|||||||
Total liabilities
|
$
|
82,232
|
|
|
$
|
82,648
|
|
|
|
|
|
$
|
80,553
|
|
|
$
|
2,095
|
|
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
$
|
5,608
|
|
|
$
|
5,608
|
|
|
$
|
5,608
|
|
|
|
|
|
|
||||
Interest-earning deposits with banks
|
10,893
|
|
|
10,893
|
|
|
|
|
$
|
10,893
|
|
|
|
|
||||||
Securities held to maturity
|
19,312
|
|
|
19,019
|
|
|
763
|
|
|
18,112
|
|
|
$
|
144
|
|
|
||||
Net loans (excludes leases)
|
215,525
|
|
|
216,492
|
|
|
|
|
|
|
216,492
|
|
|
|||||||
Other assets
|
11,065
|
|
|
11,065
|
|
|
|
|
11,060
|
|
|
5
|
|
|
||||||
Total assets
|
$
|
262,403
|
|
|
$
|
263,077
|
|
|
$
|
6,371
|
|
|
$
|
40,065
|
|
|
$
|
216,641
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Time deposits
|
$
|
18,507
|
|
|
$
|
18,246
|
|
|
|
|
$
|
18,246
|
|
|
|
|
||||
Borrowed funds
|
56,412
|
|
|
56,657
|
|
|
|
|
54,872
|
|
|
$
|
1,785
|
|
|
|||||
Unfunded loan commitments and letters of credit
|
285
|
|
|
285
|
|
|
|
|
|
|
285
|
|
|
|||||||
Other liabilities
|
393
|
|
|
393
|
|
|
|
|
393
|
|
|
|
|
|||||||
Total liabilities
|
$
|
75,597
|
|
|
$
|
75,581
|
|
|
|
|
|
$
|
73,511
|
|
|
$
|
2,070
|
|
|
•
|
financial instruments recorded at fair value on a recurring basis (as they are disclosed in Table 51);
|
•
|
investments accounted for under the equity method;
|
•
|
equity securities without a readily determinable fair value that apply for the alternative measurement approach to fair value under ASU 2016-01;
|
•
|
real and personal property;
|
•
|
lease financing;
|
•
|
loan customer relationships;
|
•
|
deposit customer intangibles;
|
•
|
mortgage servicing rights (MSRs);
|
•
|
retail branch networks;
|
•
|
fee-based businesses, such as asset management and brokerage;
|
•
|
trademarks and brand names;
|
•
|
trade receivables and payables due in one year or less; and
|
•
|
deposit liabilities with no defined or contractual maturities under ASU 2016-01.
|
In millions
|
Retail Banking
|
|
Corporate & Institutional Banking
|
|
Asset Management Group
|
|
Total
|
|
||||
December 31, 2019 (b)
|
$
|
5,795
|
|
$
|
3,374
|
|
$
|
64
|
|
$
|
9,233
|
|
December 31, 2018 (b)
|
$
|
5,795
|
|
$
|
3,359
|
|
$
|
64
|
|
$
|
9,218
|
|
December 31, 2017
|
$
|
5,795
|
|
$
|
3,314
|
|
$
|
64
|
|
$
|
9,173
|
|
(a)
|
The BlackRock business segment did not have any allocated goodwill during 2019, 2018 and 2017.
|
(b)
|
Corporate & Institutional Banking's goodwill balances include the impacts of $15 million at December 31, 2019 and $45 million at December 31, 2018 resulting from business acquisitions.
|
In millions
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
|||
January 1
|
$
|
726
|
|
|
$
|
668
|
|
|
$
|
576
|
|
|
Additions:
|
|
|
|
|
|
|
||||||
From loans sold with servicing retained
|
53
|
|
|
57
|
|
|
88
|
|
|
|||
Purchases
|
103
|
|
|
93
|
|
|
69
|
|
|
|||
Changes in fair value due to:
|
|
|
|
|
|
|
||||||
Time and payoffs (a)
|
(146
|
)
|
|
(143
|
)
|
|
(111
|
)
|
|
|||
Other (b)
|
(87
|
)
|
|
51
|
|
|
46
|
|
|
|||
December 31
|
$
|
649
|
|
|
$
|
726
|
|
|
$
|
668
|
|
|
Related unpaid principal balance at December 31
|
$
|
216,992
|
|
|
$
|
180,496
|
|
|
$
|
162,182
|
|
|
Servicing advances at December 31
|
$
|
157
|
|
|
$
|
220
|
|
|
$
|
217
|
|
|
(a)
|
Represents decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period.
|
(b)
|
Represents MSR value changes resulting primarily from market-driven changes in interest rates.
|
In millions
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
|||
January 1
|
$
|
1,257
|
|
|
$
|
1,164
|
|
|
$
|
1,182
|
|
|
Additions:
|
|
|
|
|
|
|
||||||
From loans sold with servicing retained
|
36
|
|
|
44
|
|
|
55
|
|
|
|||
Purchases
|
114
|
|
|
129
|
|
|
185
|
|
|
|||
Changes in fair value due to:
|
|
|
|
|
|
|
||||||
Time and payoffs (a)
|
(162
|
)
|
|
(170
|
)
|
|
(175
|
)
|
|
|||
Other (b)
|
(250
|
)
|
|
90
|
|
|
(83
|
)
|
|
|||
December 31
|
$
|
995
|
|
|
$
|
1,257
|
|
|
$
|
1,164
|
|
|
Unpaid principal balance of loans serviced for others at December 31
|
$
|
120,464
|
|
|
$
|
125,388
|
|
|
$
|
126,769
|
|
|
Servicing advances at December 31
|
$
|
111
|
|
|
$
|
156
|
|
|
$
|
201
|
|
|
(a)
|
Represents decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period.
|
(b)
|
Represents MSR value changes resulting from market-driven changes in interest rates.
|
Dollars in millions
|
December 31
2019 |
|
|
December 31
2018 |
|
|
||
Fair value
|
$
|
649
|
|
|
$
|
726
|
|
|
Weighted-average life (years)
|
4.1
|
|
|
4.1
|
|
|
||
Weighted-average constant prepayment rate
|
4.56
|
%
|
|
5.65
|
%
|
|
||
Decline in fair value from 10% adverse change
|
$
|
9
|
|
|
$
|
10
|
|
|
Decline in fair value from 20% adverse change
|
$
|
17
|
|
|
$
|
19
|
|
|
Effective discount rate
|
7.91
|
%
|
|
8.39
|
%
|
|
||
Decline in fair value from 10% adverse change
|
$
|
17
|
|
|
$
|
19
|
|
|
Decline in fair value from 20% adverse change
|
$
|
34
|
|
|
$
|
39
|
|
|
Dollars in millions
|
December 31
2019 |
|
|
December 31
2018 |
|
|
||
Fair value
|
$
|
995
|
|
|
$
|
1,257
|
|
|
Weighted-average life (years)
|
5.2
|
|
|
6.9
|
|
|
||
Weighted-average constant prepayment rate
|
13.51
|
|
%
|
8.69
|
|
%
|
||
Decline in fair value from 10% adverse change
|
$
|
46
|
|
|
$
|
41
|
|
|
Decline in fair value from 20% adverse change
|
$
|
89
|
|
|
$
|
79
|
|
|
Weighted-average option adjusted spread
|
769
|
|
bps
|
806
|
|
bps
|
||
Decline in fair value from 10% adverse change
|
$
|
27
|
|
|
$
|
37
|
|
|
Decline in fair value from 20% adverse change
|
$
|
52
|
|
|
$
|
73
|
|
|
In millions
|
December 31
2019 |
|
|
December 31
2018 |
|
|
||
Premises, equipment and leasehold improvements
|
$
|
14,681
|
|
|
$
|
11,864
|
|
|
Accumulated depreciation and amortization
|
(6,953
|
)
|
|
(6,137
|
)
|
|
||
Net book value
|
$
|
7,728
|
|
|
$
|
5,727
|
|
|
Year ended December 31
In millions
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
|||
Depreciation
|
$
|
778
|
|
|
$
|
754
|
|
|
$
|
743
|
|
|
Amortization
|
109
|
|
|
78
|
|
|
56
|
|
|
|||
Total depreciation and amortization
|
$
|
887
|
|
|
$
|
832
|
|
|
$
|
799
|
|
|
In billions
|
|||
2020
|
$
|
18.6
|
|
2021
|
$
|
1.6
|
|
2022
|
$
|
.6
|
|
2023
|
$
|
.4
|
|
2024
|
$
|
.2
|
|
2025 and thereafter
|
$
|
.3
|
|
In billions
|
|||
2020
|
$
|
27.1
|
|
2021
|
$
|
8.5
|
|
2022
|
$
|
8.0
|
|
2023
|
$
|
2.3
|
|
2024
|
$
|
3.0
|
|
2025 and thereafter
|
$
|
11.4
|
|
|
Stated Rate
|
|
Maturity
|
|
Carrying Value
|
|
||||||
Dollars in millions
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
||||
Parent Company
|
|
|
|
|
|
|
|
|
||||
Senior debt
|
2.20%-5.13%
|
|
2020-2029
|
|
$
|
8,843
|
|
|
$
|
5,063
|
|
|
Subordinated debt
|
3.90%
|
|
2024
|
|
777
|
|
|
1,447
|
|
|
||
Junior subordinated debt
|
2.48%
|
|
2028
|
|
205
|
|
|
205
|
|
|
||
Subtotal
|
|
|
|
|
9,825
|
|
|
6,715
|
|
|
||
Bank
|
|
|
|
|
|
|
|
|
||||
FHLB (a)
|
zero-6.35%
|
|
2020-2030
|
|
16,341
|
|
|
21,501
|
|
|
||
Senior debt
|
1.38%-3.50%
|
|
2020-2043
|
|
20,167
|
|
|
19,955
|
|
|
||
Subordinated debt
|
2.70%-4.20%
|
|
2022-2029
|
|
5,152
|
|
|
4,243
|
|
|
||
Subtotal
|
|
|
|
|
41,660
|
|
|
45,699
|
|
|
||
Total
|
|
|
|
|
$
|
51,485
|
|
|
$
|
52,414
|
|
|
(a)
|
FHLB borrowings are generally collateralized by residential mortgage loans, other mortgage-related loans and investment securities.
|
|
Qualified
Pension
|
|
Nonqualified
Pension
|
|
Postretirement
Benefits
|
||||||||||||||||||
In millions
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||||
Accumulated benefit obligation at December 31
|
$
|
4,740
|
|
|
$
|
4,315
|
|
|
$
|
259
|
|
|
$
|
253
|
|
|
|
|
|
||||
Projected benefit obligation at January 1
|
$
|
4,355
|
|
|
$
|
4,789
|
|
|
$
|
258
|
|
|
$
|
286
|
|
|
$
|
322
|
|
|
$
|
355
|
|
Service cost
|
115
|
|
|
116
|
|
|
3
|
|
|
3
|
|
|
4
|
|
|
5
|
|
||||||
Interest cost
|
186
|
|
|
171
|
|
|
10
|
|
|
9
|
|
|
13
|
|
|
12
|
|
||||||
Amendments
|
21
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Actuarial (gains)/losses and changes in assumptions
|
498
|
|
|
(424
|
)
|
|
25
|
|
|
(16
|
)
|
|
18
|
|
|
(28
|
)
|
||||||
Participant contributions
|
|
|
|
|
|
|
|
|
3
|
|
|
3
|
|
||||||||||
Federal Medicare subsidy on benefits paid
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|||||||||||
Benefits paid
|
(288
|
)
|
|
(297
|
)
|
|
(31
|
)
|
|
(24
|
)
|
|
(27
|
)
|
|
(26
|
)
|
||||||
Projected benefit obligation at December 31
|
$
|
4,887
|
|
|
$
|
4,355
|
|
|
$
|
265
|
|
|
$
|
258
|
|
|
$
|
333
|
|
|
$
|
322
|
|
Fair value of plan assets at January 1
|
$
|
4,963
|
|
|
$
|
5,253
|
|
|
|
|
|
|
$
|
232
|
|
|
$
|
230
|
|
||||
Actual return on plan assets
|
979
|
|
|
(193
|
)
|
|
|
|
|
|
15
|
|
|
3
|
|
||||||||
Employer contribution
|
|
|
200
|
|
|
$
|
31
|
|
|
$
|
24
|
|
|
24
|
|
|
21
|
|
|||||
Participant contributions
|
|
|
|
|
|
|
|
|
3
|
|
|
3
|
|
||||||||||
Federal Medicare subsidy on benefits paid
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|||||||||||
Benefits paid
|
(288
|
)
|
|
(297
|
)
|
|
(31
|
)
|
|
(24
|
)
|
|
(27
|
)
|
|
(26
|
)
|
||||||
Fair value of plan assets at December 31
|
$
|
5,654
|
|
|
$
|
4,963
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
247
|
|
|
$
|
232
|
|
Funded status
|
$
|
767
|
|
|
$
|
608
|
|
|
$
|
(265
|
)
|
|
$
|
(258
|
)
|
|
$
|
(86
|
)
|
|
$
|
(90
|
)
|
Amounts recognized on the consolidated balance sheet
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Noncurrent asset
|
$
|
767
|
|
|
$
|
608
|
|
|
|
|
|
|
|
|
|
||||||||
Current liability
|
|
|
|
|
$
|
(26
|
)
|
|
$
|
(26
|
)
|
|
$
|
(2
|
)
|
|
$
|
(2
|
)
|
||||
Noncurrent liability
|
|
|
|
|
(239
|
)
|
|
(232
|
)
|
|
(84
|
)
|
|
(88
|
)
|
||||||||
Net amount recognized on the consolidated balance sheet
|
$
|
767
|
|
|
$
|
608
|
|
|
$
|
(265
|
)
|
|
$
|
(258
|
)
|
|
$
|
(86
|
)
|
|
$
|
(90
|
)
|
Amounts recognized in AOCI consist of:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Prior service cost (credit)
|
$
|
29
|
|
|
$
|
12
|
|
|
|
|
|
|
$
|
2
|
|
|
$
|
1
|
|
||||
Net actuarial loss (gain)
|
411
|
|
|
608
|
|
|
$
|
78
|
|
|
$
|
57
|
|
|
1
|
|
|
(7
|
)
|
||||
Amount of loss (gain) recognized in AOCI
|
$
|
440
|
|
|
$
|
620
|
|
|
$
|
78
|
|
|
$
|
57
|
|
|
$
|
3
|
|
|
$
|
(6
|
)
|
•
|
Meet present and future benefit obligations to all participants and beneficiaries;
|
•
|
Cover reasonable expenses incurred to provide such benefits, including expenses incurred in the administration of the Trust and the Plan;
|
•
|
Provide sufficient liquidity to meet benefit and expense payment requirements on a timely basis; and
|
•
|
Provide a total return that, over the long term, maximizes the ratio of trust assets to liabilities by maximizing investment return, at an appropriate level of risk.
|
|
Target Allocation Range
|
|
Percentage of Plan Assets by Strategy at December 31
|
|
||
|
|
2019
|
|
2018
|
|
|
Asset Category
|
|
|
|
|||
Domestic Equity
|
20 – 40%
|
|
27
|
%
|
27
|
%
|
International Equity
|
10 – 25%
|
|
17
|
%
|
22
|
%
|
Private Equity
|
0 – 15%
|
|
10
|
%
|
11
|
%
|
Total Equity
|
40 – 70%
|
|
54
|
%
|
60
|
%
|
Domestic Fixed Income
|
10 – 40%
|
|
23
|
%
|
18
|
%
|
High Yield Fixed Income
|
0 – 25%
|
|
8
|
%
|
9
|
%
|
Total Fixed Income
|
10 – 65%
|
|
31
|
%
|
27
|
%
|
Real estate
|
0 – 10%
|
|
5
|
%
|
5
|
%
|
Other
|
0 – 15%
|
|
10
|
%
|
8
|
%
|
Total
|
100
|
%
|
100
|
%
|
100
|
%
|
Asset
|
Valuation Methodology
|
Money market funds
|
• Valued at the net asset value of the shares held by the pension plan at year end.
|
U.S. government and agency securities
Corporate debt
Common stock
|
• Valued at the closing price reported on the active market on which the individual securities are traded.
• If quoted market prices are not available for the specific security, then fair values are estimated by using pricing models or quoted prices of securities with similar characteristics. Such securities are generally classified within Level 2 of the valuation hierarchy but may be a Level 3 depending on the level of liquidity and activity in the market for the security.
|
Mutual funds
|
• Valued based on third-party pricing of the fund which is not actively traded.
|
Other investments
Derivative financial instruments
Group annuity contracts
Preferred stock
|
• Derivative financial instruments - recorded at estimated fair value as determined by third-party appraisals and pricing models.
• Group annuity contracts - measured at fair value by discounting the related cash flows based on current yields of similar instruments with comparable durations considering the credit-worthiness of the issuer.
• Preferred stock - Valued at the closing price reported on an active market on which the securities are traded.
|
Investments measured at NAV
Collective trust fund investments
Limited partnerships
|
• Collective trust fund investments - Valued based upon the units of such collective trust fund held by the Plan at year end multiplied by the respective unit value. The unit value of the collective trust fund is based upon significant observable inputs, although it is not based upon quoted marked prices in an active market. The underlying investments of the collective trust funds consist primarily of equity securities, debt obligations, short-term investments, and other marketable securities. Due to the nature of these securities, there are no unfunded commitments or redemption restrictions.
• Limited partnerships - Valued by investment managers based on recent financial information used to estimate fair value. The unit value of limited partnerships is based upon significant observable inputs, although it is not based upon quoted marked prices in an active market.
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
||||||||||||||||||||||||||||
In millions
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total Fair Value
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total Fair Value
|
|
|
||||||||
Interest bearing cash
|
|
|
|
$
|
1
|
|
|
|
|
$
|
1
|
|
|
|
$
|
7
|
|
|
$
|
2
|
|
|
|
|
$
|
9
|
|
|
|||||
Money market funds
|
$
|
456
|
|
|
|
|
|
|
456
|
|
|
|
149
|
|
|
|
|
|
|
149
|
|
|
|||||||||||
U.S. government and agency securities
|
582
|
|
|
135
|
|
|
$
|
1
|
|
|
718
|
|
|
|
512
|
|
|
130
|
|
|
|
|
642
|
|
|
||||||||
Corporate debt
|
|
|
660
|
|
|
3
|
|
|
663
|
|
|
|
|
|
580
|
|
|
$
|
6
|
|
|
586
|
|
|
|||||||||
Common stock
|
620
|
|
|
1
|
|
|
4
|
|
|
625
|
|
|
|
623
|
|
|
6
|
|
|
|
|
629
|
|
|
|||||||||
Mutual funds
|
|
|
253
|
|
|
|
|
253
|
|
|
|
|
|
236
|
|
|
|
|
236
|
|
|
||||||||||||
Other
|
|
|
|
126
|
|
|
|
|
126
|
|
|
|
4
|
|
|
42
|
|
|
4
|
|
|
50
|
|
|
|||||||||
Investments measured at net asset value (a)
|
|
|
|
|
|
|
2,812
|
|
|
|
|
|
|
|
|
|
2,662
|
|
|
||||||||||||||
Total
|
$
|
1,658
|
|
|
$
|
1,176
|
|
|
$
|
8
|
|
|
$
|
5,654
|
|
|
|
$
|
1,295
|
|
|
$
|
996
|
|
|
$
|
10
|
|
|
$
|
4,963
|
|
|
(a)
|
Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
|
|
Pension Plans
|
|
Postretirement Benefits
|
|
|||||||||
In millions
|
Qualified Pension
|
|
|
Nonqualified Pension
|
|
|
Gross PNC Benefit Payments
|
|
|
|
|||
Estimated 2020 employer contributions
|
|
|
$
|
26
|
|
|
$
|
28
|
|
|
|
||
Estimated future benefit payments
|
|
|
|
|
|
|
|
||||||
2020
|
$
|
300
|
|
|
$
|
26
|
|
|
$
|
28
|
|
|
|
2021
|
$
|
315
|
|
|
$
|
26
|
|
|
$
|
27
|
|
|
|
2022
|
$
|
329
|
|
|
$
|
23
|
|
|
$
|
26
|
|
|
|
2023
|
$
|
327
|
|
|
$
|
23
|
|
|
$
|
25
|
|
|
|
2024
|
$
|
316
|
|
|
$
|
21
|
|
|
$
|
25
|
|
|
|
2025-2029
|
$
|
1,557
|
|
|
$
|
92
|
|
|
$
|
111
|
|
|
|
|
Qualified Pension Plan
|
Nonqualified Pension Plan
|
Postretirement Benefits
|
||||||||||||||||||||||||
Year ended December 31 – in millions
|
2019 (b)
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
||||||||||
Net periodic cost consists of:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Service cost
|
$
|
115
|
|
$
|
116
|
|
$
|
160
|
|
$
|
3
|
|
$
|
3
|
|
$
|
3
|
|
$
|
4
|
|
$
|
5
|
|
$
|
5
|
|
Interest cost
|
186
|
|
171
|
|
179
|
|
10
|
|
9
|
|
10
|
|
13
|
|
12
|
|
14
|
|
|||||||||
Expected return on plan assets
|
(288
|
)
|
(306
|
)
|
(285
|
)
|
|
|
|
(5
|
)
|
(6
|
)
|
(5
|
)
|
||||||||||||
Amortization of prior service cost/(credit)
|
4
|
|
1
|
|
(3
|
)
|
|
|
|
|
|
(1
|
)
|
||||||||||||||
Amortization of actuarial (gain)/loss
|
4
|
|
|
43
|
|
4
|
|
5
|
|
4
|
|
|
|
|
|||||||||||||
Net periodic cost (benefit)
|
21
|
|
(18
|
)
|
94
|
|
17
|
|
17
|
|
17
|
|
12
|
|
11
|
|
13
|
|
|||||||||
Other changes in plan assets and benefit obligations recognized in OCI:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Current year prior service cost/(credit)
|
21
|
|
|
17
|
|
|
|
|
|
|
2
|
|
|||||||||||||||
Amortization of prior service (cost)/credit
|
(4
|
)
|
(1
|
)
|
3
|
|
|
|
|
|
|
1
|
|
||||||||||||||
Current year actuarial loss/(gain)
|
(193
|
)
|
75
|
|
(264
|
)
|
25
|
|
(16
|
)
|
7
|
|
9
|
|
(25
|
)
|
(22
|
)
|
|||||||||
Amortization of actuarial gain/(loss)
|
(4
|
)
|
|
(43
|
)
|
(4
|
)
|
(5
|
)
|
(4
|
)
|
|
|
|
|||||||||||||
Total recognized in OCI
|
(180
|
)
|
74
|
|
(287
|
)
|
21
|
|
(21
|
)
|
3
|
|
9
|
|
(25
|
)
|
(19
|
)
|
|||||||||
Total amounts recognized in net periodic cost and OCI
|
$
|
(159
|
)
|
$
|
56
|
|
$
|
(193
|
)
|
$
|
38
|
|
$
|
(4
|
)
|
$
|
20
|
|
$
|
21
|
|
$
|
(14
|
)
|
$
|
(6
|
)
|
(b)
|
Includes the effects of the qualified pension plan remeasurement as of January 31, 2019 as a result of a plan amendment.
|
|
Net Periodic Cost Determination
|
|||||
As of January 1
|
2019
|
|
2018
|
|
2017
|
|
Discount rate
|
|
|
|
|||
Qualified pension (a)
|
4.30
|
%
|
3.60
|
%
|
4.00
|
%
|
Nonqualified pension
|
4.15
|
%
|
3.45
|
%
|
3.80
|
%
|
Postretirement benefits
|
4.20
|
%
|
3.55
|
%
|
3.90
|
%
|
Rate of compensation increase (average)
|
3.50
|
%
|
3.50
|
%
|
3.50
|
%
|
Assumed health care cost trend rate
|
|
|
|
|||
Initial trend
|
6.50
|
%
|
6.75
|
%
|
7.00
|
%
|
Ultimate trend
|
5.00
|
%
|
5.00
|
%
|
5.00
|
%
|
Year ultimate trend reached
|
2025
|
|
2025
|
|
2025
|
|
Expected long-term return on plan assets
|
5.75
|
%
|
6.00
|
%
|
6.38
|
%
|
Year ended December 31
|
2019
|
|
|
2018
|
|
|
Discount rate
|
|
|
|
|
||
Qualified pension
|
3.30
|
%
|
|
4.30
|
%
|
|
Nonqualified pension
|
3.05
|
%
|
|
4.15
|
%
|
|
Postretirement benefits
|
3.20
|
%
|
|
4.20
|
%
|
|
Rate of compensation increase (average)
|
4.25
|
%
|
|
3.50
|
%
|
|
Assumed health care cost trend rate
|
|
|
|
|
||
Initial trend
|
6.25
|
%
|
|
6.50
|
%
|
|
Ultimate trend
|
5.00
|
%
|
|
5.00
|
%
|
|
Year ultimate trend reached
|
2025
|
|
|
2025
|
|
|
Shares in thousands
|
Nonvested Incentive/Performance Units Shares
|
|
Weighted-Average Grant Date Fair Value
|
|
Nonvested Restricted Share/Restricted Share Units
|
|
Weighted-Average Grant Date Fair Value
|
|
||
December 31, 2018
|
1,134
|
|
$
|
104.02
|
|
3,104
|
|
$
|
115.57
|
|
Granted (a)
|
207
|
|
$
|
115.36
|
|
1,560
|
|
$
|
117.82
|
|
Vested/Released (a)
|
(494
|
)
|
$
|
88.29
|
|
(1,278
|
)
|
$
|
84.37
|
|
Forfeitures
|
(3
|
)
|
$
|
105.43
|
|
(81
|
)
|
$
|
132.03
|
|
December 31, 2019
|
844
|
|
$
|
116.00
|
|
3,305
|
|
$
|
128.29
|
|
(a)
|
Includes adjustments for achieving specific performance goals for Incentive/Performance Unit Share Awards granted in prior periods.
|
|
December 31, 2019
|
December 31, 2018
|
||||||||||||||||
In millions
|
Notional /Contract Amount
|
|
Asset Fair
Value (b)
|
|
Liability Fair
Value (c)
|
|
Notional /Contract Amount
|
|
Asset Fair
Value (b)
|
|
Liability Fair
Value (c)
|
|
||||||
Derivatives used for hedging
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts (d):
|
|
|
|
|
|
|
||||||||||||
Fair value hedges
|
$
|
30,663
|
|
|
|
$
|
30,919
|
|
$
|
7
|
|
|
|
|||||
Cash flow hedges
|
23,642
|
|
$
|
6
|
|
|
17,337
|
|
1
|
|
|
|
||||||
Foreign exchange contracts:
|
|
|
|
|
|
|
||||||||||||
Net investment hedges
|
1,102
|
|
|
$
|
6
|
|
1,012
|
|
|
|
$
|
10
|
|
|||||
Total derivatives designated for hedging
|
$
|
55,407
|
|
$
|
6
|
|
$
|
6
|
|
$
|
49,268
|
|
$
|
8
|
|
$
|
10
|
|
Derivatives not used for hedging
|
|
|
|
|
|
|
||||||||||||
Derivatives used for mortgage banking activities (e):
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts:
|
|
|
|
|
|
|
||||||||||||
Swaps
|
$
|
52,007
|
|
$
|
1
|
|
|
$
|
43,084
|
|
|
|
$
|
3
|
|
|||
Futures (f)
|
3,487
|
|
|
|
10,658
|
|
|
|
|
|
||||||||
Mortgage-backed commitments
|
7,738
|
|
60
|
|
$
|
44
|
|
5,771
|
|
$
|
47
|
|
39
|
|
||||
Other
|
3,134
|
|
32
|
|
23
|
|
6,509
|
|
10
|
|
3
|
|
||||||
Total interest rate contracts
|
66,366
|
|
93
|
|
67
|
|
66,022
|
|
57
|
|
45
|
|
||||||
Derivatives used for customer-related activities:
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts:
|
|
|
|
|
|
|
||||||||||||
Swaps
|
249,075
|
|
2,769
|
|
1,187
|
|
218,496
|
|
1,352
|
|
1,432
|
|
||||||
Futures (f)
|
703
|
|
|
|
914
|
|
|
|
|
|
||||||||
Mortgage-backed commitments
|
3,721
|
|
2
|
|
6
|
|
2,246
|
|
7
|
|
10
|
|
||||||
Other
|
21,379
|
|
113
|
|
33
|
|
20,109
|
|
77
|
|
33
|
|
||||||
Total interest rate contracts
|
274,878
|
|
2,884
|
|
1,226
|
|
241,765
|
|
1,436
|
|
1,475
|
|
||||||
Commodity contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Swaps
|
5,204
|
|
234
|
|
229
|
|
4,813
|
|
244
|
|
238
|
|
||||||
Other
|
4,203
|
|
72
|
|
72
|
|
1,418
|
|
67
|
|
67
|
|
||||||
Total commodity contracts
|
9,407
|
|
306
|
|
301
|
|
6,231
|
|
311
|
|
305
|
|
||||||
Foreign exchange contracts and other
|
27,120
|
|
204
|
|
162
|
|
23,253
|
|
194
|
|
192
|
|
||||||
Total foreign exchange contracts and other
|
311,405
|
|
3,394
|
|
1,689
|
|
271,249
|
|
1,941
|
|
1,972
|
|
||||||
Derivatives used for other risk management activities:
|
|
|
|
|
|
|
||||||||||||
Foreign exchange contracts and other
|
10,201
|
|
9
|
|
257
|
|
7,908
|
|
75
|
|
263
|
|
||||||
Total derivatives not designated for hedging
|
$
|
387,972
|
|
$
|
3,496
|
|
$
|
2,013
|
|
$
|
345,179
|
|
$
|
2,073
|
|
$
|
2,280
|
|
Total gross derivatives
|
$
|
443,379
|
|
$
|
3,502
|
|
$
|
2,019
|
|
$
|
394,447
|
|
$
|
2,081
|
|
$
|
2,290
|
|
Less: Impact of legally enforceable master netting agreements
|
|
690
|
|
690
|
|
|
688
|
|
688
|
|
||||||||
Less: Cash collateral received/paid
|
|
|
616
|
|
790
|
|
|
|
341
|
|
539
|
|
||||||
Total derivatives
|
|
|
$
|
2,196
|
|
$
|
539
|
|
|
|
$
|
1,052
|
|
$
|
1,063
|
|
(a)
|
Centrally cleared derivatives are settled in cash daily and result in no derivative asset or derivative liability being recognized on our Consolidated Balance Sheet.
|
(b)
|
Included in Other assets on our Consolidated Balance Sheet.
|
(c)
|
Included in Other liabilities on our Consolidated Balance Sheet.
|
(d)
|
Represents primarily swaps.
|
(e)
|
Includes both residential and commercial mortgage banking activities.
|
(f)
|
Futures contracts settle in cash daily and, therefore, no derivative asset or derivative liability is recognized on our Consolidated Balance Sheet.
|
|
Location and Amount of Gains (Losses) Recognized in Income
|
|||||||||||
|
Interest Income
|
Interest Expense
|
Noninterest Income
|
|||||||||
In millions
|
Loans
|
Investment Securities
|
Borrowed Funds
|
Other
|
||||||||
Year ended December 31, 2019
|
|
|
|
|
||||||||
Total amounts on the Consolidated Income Statement
|
$
|
10,525
|
|
$
|
2,426
|
|
$
|
1,811
|
|
$
|
1,473
|
|
Gains (losses) on fair value hedges recognized on:
|
|
|
|
|
||||||||
Hedged items (c)
|
|
$
|
187
|
|
$
|
(808
|
)
|
|
||||
Derivatives
|
|
$
|
(178
|
)
|
$
|
659
|
|
|
||||
Amounts related to interest settlements on derivatives
|
|
$
|
13
|
|
$
|
79
|
|
|
||||
Gains (losses) on cash flow hedges (d):
|
|
|
|
|
||||||||
Amount of derivative gains (losses) reclassified from AOCI
|
$
|
9
|
|
$
|
9
|
|
|
$
|
19
|
|
||
Year ended December 31, 2018
|
|
|
|
|
||||||||
Total amounts on the Consolidated Income Statement
|
$
|
9,580
|
|
$
|
2,261
|
|
$
|
1,632
|
|
$
|
1,205
|
|
Gains (losses) on fair value hedges recognized on:
|
|
|
|
|
||||||||
Hedged items (c)
|
|
$
|
(53
|
)
|
$
|
151
|
|
|
||||
Derivatives
|
|
$
|
60
|
|
$
|
(262
|
)
|
|
||||
Amounts related to interest settlements on derivatives
|
|
$
|
3
|
|
$
|
80
|
|
|
||||
Gains (losses) on cash flow hedges (d):
|
|
|
|
|
||||||||
Amount of derivative gains (losses) reclassified from AOCI
|
$
|
41
|
|
$
|
11
|
|
|
$
|
8
|
|
||
Year ended December 31, 2017
|
|
|
|
|
||||||||
Total amounts on the Consolidated Income Statement
|
$
|
8,238
|
|
$
|
1,998
|
|
$
|
1,083
|
|
$
|
1,077
|
|
Gains (losses) on fair value hedges recognized on (e):
|
|
|
|
|
||||||||
Hedged items (c)
|
|
$
|
(50
|
)
|
$
|
268
|
|
|
||||
Derivatives
|
|
$
|
48
|
|
$
|
(284
|
)
|
|
||||
Amounts related to interest settlements on derivatives
|
|
$
|
(41
|
)
|
$
|
234
|
|
|
||||
Gains (losses) on cash flow hedges (d):
|
|
|
|
|
||||||||
Amount of derivative gains (losses) reclassified from AOCI
|
$
|
159
|
|
$
|
21
|
|
|
$
|
17
|
|
(a)
|
For all periods presented, there were no components of derivative gains or losses excluded from the assessment of hedge effectiveness for any of the fair value or cash flow hedge strategies.
|
(b)
|
All cash flow and fair value hedge derivatives were interest rate contracts for the periods presented.
|
(c)
|
Includes an insignificant amount of fair value hedge adjustments related to discontinued hedge relationships.
|
(d)
|
For all periods presented, there were no gains or losses from cash flow hedge derivatives reclassified to income because it became probable that the original forecasted transaction would not occur.
|
(e)
|
The difference between the gains (losses) recognized in income on derivatives and their related hedged items represents the ineffective portion of the change in value of our fair value hedged derivatives.
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||
In millions
|
Carrying Value of the Hedged Items
|
|
|
Cumulative Fair Value Hedge Adjustment included in the Carrying Value of Hedged Items (a)
|
|
|
Carrying Value of the Hedged Items
|
|
|
Cumulative Fair Value Hedge Adjustment included in the Carrying Value of Hedged Items (a)
|
|
||||
Investment securities - Available for Sale (b)
|
$
|
5,666
|
|
|
$
|
59
|
|
|
$
|
6,216
|
|
|
$
|
(103
|
)
|
Borrowed funds
|
$
|
28,616
|
|
|
$
|
548
|
|
|
$
|
27,121
|
|
|
$
|
(260
|
)
|
(a)
|
Includes $(.3) billion and $(.5) billion of fair value hedge adjustments primarily related to discontinued borrowed funds hedge relationships at December 31, 2019 and 2018, respectively.
|
(b)
|
Carrying value shown represents amortized cost.
|
|
Year ended December 31
|
|
||||||||||
In millions
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
|||
Derivatives used for mortgage banking activities:
|
|
|
|
|
|
|
||||||
Interest rate contracts (a)
|
$
|
405
|
|
|
$
|
(56
|
)
|
|
$
|
75
|
|
|
Derivatives used for customer-related activities:
|
|
|
|
|
|
|
||||||
Interest rate contracts
|
125
|
|
|
99
|
|
|
95
|
|
|
|||
Foreign exchange contracts and other (b)
|
114
|
|
|
104
|
|
|
146
|
|
|
|||
Gains (losses) from customer-related activities (c)
|
239
|
|
|
203
|
|
|
241
|
|
|
|||
Derivatives used for other risk management activities:
|
|
|
|
|
|
|
||||||
Foreign exchange contracts and other (c)
|
(137
|
)
|
|
268
|
|
|
(525
|
)
|
|
|||
Total gains (losses) from derivatives not designated as hedging instruments
|
$
|
507
|
|
|
$
|
415
|
|
|
$
|
(209
|
)
|
|
(a)
|
Included in Residential mortgage, Corporate services and Other noninterest income on our Consolidated Income Statement.
|
(b)
|
Includes an insignificant amount of gains (losses) on commodity contracts for all periods presented.
|
(c)
|
Included in Other noninterest income on our Consolidated Income Statement.
|
In millions
|
Gross Fair Value
|
|
|
Amounts Offset on the Consolidated Balance Sheet
|
|
Net Fair Value
|
|
|
Securities Collateral Held /Pledged Under Master Netting Agreements
|
|
|
Net Amounts
|
|
||||||||||
Fair Value Offset Amount
|
|
|
Cash Collateral
|
|
|
||||||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Over-the-counter cleared
|
$
|
14
|
|
|
|
|
|
|
$
|
14
|
|
|
|
|
$
|
14
|
|
||||||
Over-the-counter
|
2,969
|
|
|
$
|
365
|
|
|
$
|
593
|
|
|
2,011
|
|
|
$
|
215
|
|
|
1,796
|
|
|||
Commodity contracts
|
306
|
|
|
198
|
|
|
18
|
|
|
90
|
|
|
|
|
90
|
|
|||||||
Foreign exchange and other contracts
|
213
|
|
|
127
|
|
|
5
|
|
|
81
|
|
|
|
|
81
|
|
|||||||
Total derivative assets
|
$
|
3,502
|
|
|
$
|
690
|
|
|
$
|
616
|
|
|
$
|
2,196
|
|
(a)
|
$
|
215
|
|
|
$
|
1,981
|
|
Derivative liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Over-the-counter cleared
|
$
|
14
|
|
|
|
|
|
|
$
|
14
|
|
|
|
|
$
|
14
|
|
||||||
Over-the-counter
|
1,279
|
|
|
$
|
475
|
|
|
$
|
692
|
|
|
112
|
|
|
|
|
112
|
|
|||||
Commodity contracts
|
301
|
|
|
152
|
|
|
17
|
|
|
132
|
|
|
|
|
132
|
|
|||||||
Foreign exchange and other contracts
|
425
|
|
|
63
|
|
|
81
|
|
|
281
|
|
|
|
|
281
|
|
|||||||
Total derivative liabilities
|
$
|
2,019
|
|
|
$
|
690
|
|
|
$
|
790
|
|
|
$
|
539
|
|
(b)
|
|
|
|
$
|
539
|
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Over-the-counter cleared
|
$
|
29
|
|
|
|
|
|
|
|
|
$
|
29
|
|
|
|
|
$
|
29
|
|
||||
Over-the-counter
|
1,472
|
|
|
$
|
450
|
|
|
$
|
117
|
|
|
905
|
|
|
$
|
25
|
|
|
880
|
|
|||
Commodity contracts
|
311
|
|
|
76
|
|
|
210
|
|
|
25
|
|
|
|
|
25
|
|
|||||||
Foreign exchange and other contracts
|
269
|
|
|
162
|
|
|
14
|
|
|
93
|
|
|
|
|
93
|
|
|||||||
Total derivative assets
|
$
|
2,081
|
|
|
$
|
688
|
|
|
$
|
341
|
|
|
$
|
1,052
|
|
(a)
|
$
|
25
|
|
|
$
|
1,027
|
|
Derivative liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Over-the-counter cleared
|
$
|
24
|
|
|
|
|
|
|
|
$
|
24
|
|
|
|
|
$
|
24
|
|
|||||
Over-the-counter
|
1,496
|
|
|
$
|
557
|
|
|
$
|
489
|
|
|
450
|
|
|
$
|
11
|
|
|
439
|
|
|||
Commodity contracts
|
305
|
|
|
56
|
|
|
17
|
|
|
232
|
|
|
|
|
232
|
|
|||||||
Foreign exchange and other contracts
|
465
|
|
|
75
|
|
|
33
|
|
|
357
|
|
|
|
|
357
|
|
|||||||
Total derivative liabilities
|
$
|
2,290
|
|
|
$
|
688
|
|
|
$
|
539
|
|
|
$
|
1,063
|
|
(b)
|
$
|
11
|
|
|
$
|
1,052
|
|
(a)
|
Represents the net amount of derivative assets included in Other assets on our Consolidated Balance Sheet.
|
(b)
|
Represents the net amount of derivative liabilities included in Other liabilities on our Consolidated Balance Sheet.
|
In millions, except per share data
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Basic
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
5,418
|
|
|
$
|
5,346
|
|
|
$
|
5,388
|
|
Less:
|
|
|
|
|
|
|
||||||
Net income attributable to noncontrolling interests
|
|
49
|
|
|
45
|
|
|
50
|
|
|||
Preferred stock dividends
|
|
236
|
|
|
236
|
|
|
236
|
|
|||
Preferred stock discount accretion and redemptions
|
|
4
|
|
|
4
|
|
|
26
|
|
|||
Net income attributable to common shareholders
|
|
5,129
|
|
|
5,061
|
|
|
5,076
|
|
|||
Less: Dividends and undistributed earnings allocated to participating securities
|
|
21
|
|
|
21
|
|
|
23
|
|
|||
Net income attributable to basic common shareholders
|
|
$
|
5,108
|
|
|
$
|
5,040
|
|
|
$
|
5,053
|
|
Basic weighted-average common shares outstanding
|
|
447
|
|
|
467
|
|
|
481
|
|
|||
Basic earnings per common share (a)
|
|
$
|
11.43
|
|
|
$
|
10.79
|
|
|
$
|
10.49
|
|
Diluted
|
|
|
|
|
|
|
||||||
Net income attributable to basic common shareholders
|
|
$
|
5,108
|
|
|
$
|
5,040
|
|
|
$
|
5,053
|
|
Less: Impact of BlackRock earnings per share dilution
|
|
10
|
|
|
9
|
|
|
16
|
|
|||
Net income attributable to diluted common shareholders
|
|
$
|
5,098
|
|
|
$
|
5,031
|
|
|
$
|
5,037
|
|
Basic weighted-average common shares outstanding
|
|
447
|
|
|
467
|
|
|
481
|
|
|||
Dilutive potential common shares
|
|
1
|
|
|
3
|
|
|
5
|
|
|||
Diluted weighted-average common shares outstanding
|
|
448
|
|
|
470
|
|
|
486
|
|
|||
Diluted earnings per common share (a)
|
|
$
|
11.39
|
|
|
$
|
10.71
|
|
|
$
|
10.36
|
|
(a)
|
Basic and diluted earnings per share under the two-class method are determined on net income reported on the income statement less earnings allocated to nonvested restricted shares and restricted share units with nonforfeitable dividends and dividend rights (participating securities).
|
|
|
|
|
Preferred Shares
|
|
||||||
December 31
Shares in thousands
|
|
Liquidation
value per share
|
|
|
2019
|
|
|
2018
|
|
|
|
Authorized
|
|
|
|
|
|
|
|
||||
$1 par value
|
|
|
|
20,000
|
|
|
20,000
|
|
|
||
Issued and outstanding
|
|
|
|
|
|
|
|
||||
Series B
|
|
$
|
40
|
|
|
1
|
|
|
1
|
|
|
Series O
|
|
$
|
100,000
|
|
|
10
|
|
|
10
|
|
|
Series P
|
|
$
|
100,000
|
|
|
15
|
|
|
15
|
|
|
Series Q
|
|
$
|
100,000
|
|
|
5
|
|
|
5
|
|
|
Series R
|
|
$
|
100,000
|
|
|
5
|
|
|
5
|
|
|
Series S
|
|
$
|
100,000
|
|
|
5
|
|
|
5
|
|
|
Total issued and outstanding
|
|
|
|
|
41
|
|
|
41
|
|
|
Preferred Stock
|
Issue
Date
|
Number of
Depositary
Shares Issued and Outstanding
|
|
Fractional Interest in a share of preferred stock represented by each Depositary Share
|
Dividend Dates (a)
|
Annual Per Share Dividend Rate
|
|
Optional
Redemption
Date (b)
|
||
Series B (c)
|
(c)
|
N/A
|
|
N/A
|
Quarterly from March 10th
|
|
$
|
1.80
|
|
None
|
Series O (d)
|
July 27, 2011
|
1 million
|
|
1/100th
|
Semi-annually beginning on February 1, 2012
until August 1, 2021 Quarterly beginning on November 1, 2021 |
6.75% until August 1, 2021
3 Mo. LIBOR plus 3.678% per annum beginning on August 1, 2021 |
|
August 1, 2021
|
||
Series P (d)
|
April 24, 2012
|
60 million
|
|
1/4,000th
|
Quarterly beginning on August 1, 2012
|
6.125% until May 1, 2022
3 Mo. LIBOR plus 4.0675% per annum beginning on May 1, 2022 |
|
May 1, 2022
|
||
Series Q (d)
|
September 21, 2012
October 9, 2012 |
18 million
1.2 million |
|
1/4,000th
|
Quarterly beginning on December 1, 2012
|
|
5.375
|
%
|
December 1, 2017
|
|
Series R (d)
|
May 7, 2013
|
500,000
|
|
1/100th
|
Semi-annually beginning on December 1, 2013 until June 1, 2023
Quarterly beginning on September 1, 2023 |
4.85% until June 1, 2023
3 Mo. LIBOR plus 3.04% per annum beginning June 1, 2023 |
|
June 1, 2023
|
||
Series S (d)
|
November 1, 2016
|
525,000
|
|
1/100th
|
Semi-annually beginning on May 1, 2017
until November 1, 2026 Quarterly beginning on February 1, 2027 |
5.00% until November 1, 2026
3 Mo. LIBOR plus 3.30% per annum beginning November 1, 2026 |
|
November 1, 2026
|
(a)
|
Dividends are payable when, as, and if declared by our Board of Directors or an authorized committee of our Board of Directors.
|
(b)
|
Redeemable at our option on or after the date stated. With the exception of the Series B preferred stock, redeemable at our option within 90 days of a regulatory capital treatment event as defined in the designations.
|
(c)
|
Cumulative preferred stock. Holders of Series B preferred stock are entitled to 8 votes per share, which is equal to the number of full shares of common stock into which the Series B preferred stock is convertible. The Series B preferred stock was issued in connection with the consolidation of Pittsburgh National Corporation and Provident National Corporation in 1983.
|
(d)
|
Non-Cumulative preferred stock.
|
December 31
|
2019
|
|
2018
|
|
2017
|
|
|||
Common Stock
|
$
|
4.20
|
|
$
|
3.40
|
|
$
|
2.60
|
|
Preferred Stock
|
|
|
|
||||||
Series B
|
$
|
1.80
|
|
$
|
1.80
|
|
$
|
1.80
|
|
Series O
|
$
|
6,750
|
|
$
|
6,750
|
|
$
|
6,750
|
|
Series P
|
$
|
6,125
|
|
$
|
6,125
|
|
$
|
6,125
|
|
Series Q
|
$
|
5,375
|
|
$
|
5,375
|
|
$
|
5,375
|
|
Series R
|
$
|
4,850
|
|
$
|
4,850
|
|
$
|
4,850
|
|
Series S
|
$
|
5,000
|
|
$
|
5,000
|
|
$
|
5,000
|
|
In millions
|
2019
|
|
2018
|
|
2017
|
|
|
|||
Net unrealized gains (losses) on non-OTTI securities
|
|
|
|
|
||||||
Increase in net unrealized gains (losses) on non-OTTI securities
|
$
|
1,505
|
|
$
|
(522
|
)
|
$
|
29
|
|
|
Less: Net gains (losses) realized as a yield adjustment reclassified to investment securities interest income
|
11
|
|
12
|
|
25
|
|
|
|||
Less: Net gains (losses) realized on sales of securities reclassified to noninterest income
|
29
|
|
(8
|
)
|
(12
|
)
|
|
|||
Net increase (decrease), pre-tax
|
1,465
|
|
(526
|
)
|
16
|
|
|
|||
Effect of income taxes
|
(337
|
)
|
121
|
|
(6
|
)
|
|
|||
Net increase (decrease), after-tax
|
1,128
|
|
(405
|
)
|
10
|
|
|
|||
Net unrealized gains (losses) on OTTI securities
|
|
|
|
|
||||||
Increase in net unrealized gains (losses) on OTTI securities
|
24
|
|
(14
|
)
|
173
|
|
|
|||
Less: Net gains (losses) realized on sales of securities reclassified to noninterest income
|
|
|
|
2
|
|
|
||||
Less: OTTI losses realized on securities reclassified to noninterest income
|
|
|
|
(1
|
)
|
|
||||
Net increase (decrease), pre-tax
|
24
|
|
(14
|
)
|
172
|
|
|
|||
Effect of income taxes
|
(5
|
)
|
3
|
|
(63
|
)
|
|
|||
Net increase (decrease), after-tax
|
19
|
|
(11
|
)
|
109
|
|
|
|||
Net unrealized gains (losses) on cash flow hedge derivatives
|
|
|
|
|
||||||
Increase in net unrealized gains (losses) on cash flow hedge derivatives
|
334
|
|
(118
|
)
|
(90
|
)
|
|
|||
Less: Net gains (losses) realized as a yield adjustment reclassified to loan interest income
|
9
|
|
41
|
|
159
|
|
|
|||
Less: Net gains (losses) realized as a yield adjustment reclassified to investment securities interest income
|
9
|
|
11
|
|
21
|
|
|
|||
Less: Net gains (losses) realized on sales of securities reclassified to noninterest income
|
19
|
|
8
|
|
17
|
|
|
|||
Net increase (decrease), pre-tax
|
297
|
|
(178
|
)
|
(287
|
)
|
|
|||
Effect of income taxes
|
(68
|
)
|
41
|
|
105
|
|
|
|||
Net increase (decrease), after-tax
|
229
|
|
(137
|
)
|
(182
|
)
|
|
|||
Pension and other postretirement benefit plan adjustments
|
|
|
|
|
||||||
Net pension and other postretirement benefit activity
|
146
|
|
10
|
|
126
|
|
|
|||
Amortization of actuarial loss (gain) reclassified to other noninterest expense
|
8
|
|
5
|
|
47
|
|
|
|||
Amortization of prior service cost (credit) reclassified to other noninterest expense
|
4
|
|
1
|
|
(4
|
)
|
|
|||
Net increase (decrease), pre-tax
|
158
|
|
16
|
|
169
|
|
|
|||
Effect of income taxes
|
(36
|
)
|
(4
|
)
|
(62
|
)
|
|
|||
Net increase (decrease), after-tax
|
122
|
|
12
|
|
107
|
|
|
|||
Other
|
|
|
|
|
||||||
PNC’s portion of BlackRock’s OCI
|
5
|
|
(55
|
)
|
52
|
|
|
|||
Net investment hedge derivatives
|
(24
|
)
|
76
|
|
(81
|
)
|
|
|||
Foreign currency translation adjustments
|
41
|
|
(58
|
)
|
90
|
|
|
|||
Net increase (decrease), pre-tax
|
22
|
|
(37
|
)
|
61
|
|
|
|||
Effect of income taxes
|
4
|
|
(5
|
)
|
12
|
|
|
|||
Net increase (decrease), after-tax
|
26
|
|
(42
|
)
|
73
|
|
|
|||
Total other comprehensive income (loss), pre-tax
|
1,966
|
|
(739
|
)
|
131
|
|
|
|||
Total other comprehensive income, tax effect
|
(442
|
)
|
156
|
|
(14
|
)
|
|
|||
Total other comprehensive income (loss), after-tax
|
$
|
1,524
|
|
$
|
(583
|
)
|
$
|
117
|
|
|
In millions, after-tax
|
Net unrealized gains (losses) on non-OTTI securities
|
|
|
Net unrealized gains (losses) on OTTI securities
|
|
|
Net unrealized gains (losses) on cash flow hedge derivatives
|
|
|
Pension and other postretirement benefit plan adjustments
|
|
|
Other
|
|
|
Total
|
|
|
||||||
Balance at December 31, 2016
|
$
|
52
|
|
|
$
|
106
|
|
|
$
|
333
|
|
|
$
|
(553
|
)
|
|
$
|
(203
|
)
|
|
$
|
(265
|
)
|
|
Net activity
|
10
|
|
|
109
|
|
|
(182
|
)
|
|
107
|
|
|
73
|
|
|
117
|
|
|
||||||
Balance at December 31, 2017
|
$
|
62
|
|
|
$
|
215
|
|
|
$
|
151
|
|
|
$
|
(446
|
)
|
|
$
|
(130
|
)
|
|
$
|
(148
|
)
|
|
Cumulative effect of adopting ASU 2018-02 (a)
|
59
|
|
|
|
|
|
33
|
|
|
(96
|
)
|
|
10
|
|
|
6
|
|
|
||||||
Balance at January 1, 2018
|
121
|
|
|
215
|
|
|
184
|
|
|
(542
|
)
|
|
(120
|
)
|
|
(142
|
)
|
|
||||||
Net activity
|
(405
|
)
|
|
(11
|
)
|
|
(137
|
)
|
|
12
|
|
|
(42
|
)
|
|
(583
|
)
|
|
||||||
Balance at December 31, 2018
|
$
|
(284
|
)
|
|
$
|
204
|
|
|
$
|
47
|
|
|
$
|
(530
|
)
|
|
$
|
(162
|
)
|
|
$
|
(725
|
)
|
|
Net activity
|
1,128
|
|
|
19
|
|
|
229
|
|
|
122
|
|
|
26
|
|
|
1,524
|
|
|
||||||
Balance at December 31, 2019
|
$
|
844
|
|
|
$
|
223
|
|
|
$
|
276
|
|
|
$
|
(408
|
)
|
|
$
|
(136
|
)
|
|
$
|
799
|
|
|
(a)
|
Represents the cumulative impact of adopting ASU 2018-02 which permits the reclassification to retained earnings of the income tax effects stranded within AOCI. See the Recently Adopted Accounting Standards portion of Note 1 Accounting Policies in our 2018 Form 10-K for additional detail on this adoption.
|
Year ended December 31
In millions
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
|||
Current
|
|
|
|
|
|
|
||||||
Federal
|
$
|
608
|
|
|
$
|
773
|
|
|
$
|
454
|
|
|
State
|
151
|
|
|
176
|
|
|
51
|
|
|
|||
Total current
|
759
|
|
|
949
|
|
|
505
|
|
|
|||
Deferred
|
|
|
|
|
|
|
||||||
Federal
|
299
|
|
|
123
|
|
|
(474
|
)
|
|
|||
State
|
4
|
|
|
10
|
|
|
71
|
|
|
|||
Total deferred
|
303
|
|
|
133
|
|
|
(403
|
)
|
|
|||
Total
|
$
|
1,062
|
|
|
$
|
1,082
|
|
|
$
|
102
|
|
|
December 31 – in millions
|
2019
|
|
|
2018
|
|
|
||
Deferred tax assets
|
|
|
|
|
||||
Allowance for loan and lease losses
|
$
|
661
|
|
|
$
|
637
|
|
|
Compensation and benefits
|
270
|
|
|
279
|
|
|
||
Partnership investments
|
120
|
|
|
184
|
|
|
||
Loss and credit carryforward
|
203
|
|
|
366
|
|
|
||
Accrued expenses
|
195
|
|
|
207
|
|
|
||
Lease obligations
|
545
|
|
|
|
|
|
||
Other
|
161
|
|
|
193
|
|
|
||
Total gross deferred tax assets
|
2,155
|
|
|
1,866
|
|
|
||
Valuation allowance
|
(31
|
)
|
|
(37
|
)
|
|
||
Total deferred tax assets
|
2,124
|
|
|
1,829
|
|
|
||
Deferred tax liabilities
|
|
|
|
|
||||
Leasing
|
1,703
|
|
|
1,169
|
|
|
||
Goodwill and intangibles
|
194
|
|
|
196
|
|
|
||
Fixed assets
|
412
|
|
|
379
|
|
|
||
Mortgage servicing rights
|
99
|
|
|
179
|
|
|
||
Net unrealized gains on securities and financial instruments
|
401
|
|
|
|
|
|
||
BlackRock basis difference
|
1,845
|
|
|
1,726
|
|
|
||
Other
|
176
|
|
|
119
|
|
|
||
Total deferred tax liabilities
|
4,830
|
|
|
3,768
|
|
|
||
Net deferred tax liability
|
$
|
2,706
|
|
|
$
|
1,939
|
|
|
Year ended December 31
|
2019
|
|
|
2018
|
|
|
2017
|
|
Statutory tax rate
|
21.0
|
%
|
|
21.0
|
%
|
|
35.0
|
%
|
Increases (decreases) resulting from:
|
|
|
|
|
|
|||
State taxes net of federal benefit
|
2.1
|
|
|
2.3
|
|
|
1.5
|
|
Tax-exempt interest
|
(1.2
|
)
|
|
(1.4
|
)
|
|
(2.5
|
)
|
Life insurance
|
(.9
|
)
|
|
(.9
|
)
|
|
(1.8
|
)
|
Dividend received deduction
|
(1.0
|
)
|
|
(.9
|
)
|
|
(1.8
|
)
|
Tax credits
|
(3.5
|
)
|
|
(3.4
|
)
|
|
(4.2
|
)
|
Federal deferred tax revaluation
|
|
|
(1.7
|
)
|
|
(21.7
|
)
|
|
Unrecognized tax benefits
|
|
|
|
1.1
|
|
|
(.1
|
)
|
Other
|
(.1
|
)
|
|
.7
|
|
|
(2.5
|
)
|
Effective tax rate
|
16.4
|
%
|
|
16.8
|
%
|
|
1.9
|
%
|
Dollars in millions
|
December 31, 2019
|
|
|
December 31, 2018
|
|
|
Expiration
|
|
||
Net Operating Loss Carryforwards:
|
|
|
|
|
|
|
||||
Federal
|
$
|
402
|
|
|
$
|
521
|
|
|
2032
|
|
State
|
$
|
1,197
|
|
|
$
|
1,577
|
|
|
2020-2039
|
|
In millions
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
|||
Balance of gross unrecognized tax benefits at January 1
|
$
|
207
|
|
|
$
|
18
|
|
|
$
|
22
|
|
|
Increases:
|
|
|
|
|
|
|
||||||
Positions taken during a prior period
|
|
|
212
|
|
|
4
|
|
|
||||
Decreases:
|
|
|
|
|
|
|
||||||
Positions taken during a prior period
|
(77
|
)
|
|
(16
|
)
|
|
(3
|
)
|
|
|||
Settlements with taxing authorities
|
|
|
(7
|
)
|
|
(4
|
)
|
|
||||
Reductions resulting from lapse of statute of limitations
|
|
|
|
|
(1
|
)
|
|
|||||
Balance of gross unrecognized tax benefits at December 31
|
$
|
130
|
|
|
$
|
207
|
|
|
$
|
18
|
|
|
Favorable (unfavorable) impact if recognized
|
$
|
76
|
|
|
$
|
76
|
|
|
$
|
17
|
|
|
|
Years under examination
|
|
Status at December 31
|
|
Federal
|
2016 – 2017
|
|
Under Exam
|
|
|
Amount
|
|
Ratios
|
|
|||||||||||||
December 31
Dollars in millions |
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
“Well Capitalized” Requirements
|
|
|
||
Risk-based capital
|
|
|
|
|
|
|
|
|
|
|
|||||||
Common equity Tier 1
|
|
|
|
|
|
|
|
|
|
|
|||||||
PNC
|
$
|
32,478
|
|
|
$
|
30,905
|
|
|
9.5
|
%
|
|
9.6
|
%
|
|
N/A
|
|
|
PNC Bank
|
$
|
32,215
|
|
|
$
|
30,046
|
|
|
9.9
|
%
|
|
9.8
|
%
|
|
6.5
|
%
|
|
Tier 1
|
|
|
|
|
|
|
|
|
|
|
|||||||
PNC
|
$
|
36,306
|
|
|
$
|
34,735
|
|
|
10.7
|
%
|
|
10.8
|
%
|
|
6.0
|
%
|
|
PNC Bank
|
$
|
32,215
|
|
|
$
|
30,046
|
|
|
9.9
|
%
|
|
9.8
|
%
|
|
8.0
|
%
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|||||||
PNC
|
$
|
43,331
|
|
|
$
|
41,606
|
|
|
12.7
|
%
|
|
13.0
|
%
|
|
10.0
|
%
|
|
PNC Bank
|
$
|
39,074
|
|
|
$
|
36,510
|
|
|
12.1
|
%
|
|
11.9
|
%
|
|
10.0
|
%
|
|
Leverage
|
|
|
|
|
|
|
|
|
|
|
|||||||
PNC
|
$
|
36,306
|
|
|
$
|
34,735
|
|
|
9.1
|
%
|
|
9.4
|
%
|
|
N/A
|
|
|
PNC Bank
|
$
|
32,215
|
|
|
$
|
30,046
|
|
|
8.3
|
%
|
|
8.3
|
%
|
|
5.0
|
%
|
|
(a)
|
Calculated using the regulatory capital methodology applicable to us during both 2019 and 2018.
|
•
|
Capital needs;
|
•
|
Laws and regulations;
|
•
|
Corporate policies;
|
•
|
Contractual restrictions; and
|
•
|
Other factors.
|
•
|
An additional settlement payment from all defendants of $900 million, with Visa’s share of the additional settlement payment being $600 million. The additional settlement payment will be added to the approximately $5.3 billion previously paid by the defendants pursuant to the original 2012 settlement agreement.
|
•
|
Up to $700 million may be returned to the defendants (with up to $467 million to Visa) if more than 15% of class members (by payment volume) opt out of the class. As more than 15% of class members opted out of the class, $700 million has been returned to the defendants ($467 million to Visa).
|
In millions
|
|
December 31 2019
|
|
|
December 31
2018 |
|
|
||
Commitments to extend credit
|
|
|
|
|
|
||||
Total commercial lending
|
|
$
|
131,762
|
|
|
$
|
120,165
|
|
|
Home equity lines of credit
|
|
16,803
|
|
|
16,944
|
|
|
||
Credit card
|
|
30,862
|
|
|
27,100
|
|
|
||
Other
|
|
6,162
|
|
|
5,069
|
|
|
||
Total commitments to extend credit
|
|
185,589
|
|
|
169,278
|
|
|
||
Net outstanding standby letters of credit (a)
|
|
9,843
|
|
|
8,655
|
|
|
||
Reinsurance agreements (b)
|
|
1,393
|
|
|
1,549
|
|
|
||
Standby bond purchase agreements (c)
|
|
1,295
|
|
|
1,000
|
|
|
||
Other commitments (d)
|
|
1,498
|
|
|
1,130
|
|
|
||
Total commitments to extend credit and other commitments
|
|
$
|
199,618
|
|
|
$
|
181,612
|
|
|
(a)
|
Net outstanding standby letters of credit include $4.1 billion and $3.7 billion at December 31, 2019 and 2018, respectively, which support remarketing programs.
|
(b)
|
Represents aggregate maximum exposure up to the specified limits of the reinsurance contracts provided by our wholly-owned captive insurance subsidiary. These amounts reflect estimates based on availability of financial information from insurance carriers. As of December 31, 2019, the aggregate maximum exposure amount comprised $1.3 billion for accidental death & dismemberment contracts and $.1 billion for credit life, accident & health contracts. Comparable amounts at December 31, 2018 were $1.3 billion and $.2 billion, respectively.
|
(c)
|
We enter into standby bond purchase agreements to support municipal bond obligations.
|
(d)
|
Includes $.6 billion and $.5 billion related to investments in qualified affordable housing projects at December 31, 2019 and 2018, respectively.
|
Year ended December 31 – in millions
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Operating Revenue
|
|
|
|
|
|
||||||
Dividends from:
|
|
|
|
|
|
||||||
Bank subsidiaries and bank holding company
|
$
|
4,030
|
|
|
$
|
3,057
|
|
|
$
|
3,278
|
|
Non-bank subsidiaries
|
170
|
|
|
157
|
|
|
376
|
|
|||
Interest income
|
169
|
|
|
147
|
|
|
109
|
|
|||
Noninterest income
|
48
|
|
|
(1
|
)
|
|
37
|
|
|||
Total operating revenue
|
4,417
|
|
|
3,360
|
|
|
3,800
|
|
|||
Operating Expense
|
|
|
|
|
|
||||||
Interest expense
|
325
|
|
|
281
|
|
|
215
|
|
|||
Other expense
|
146
|
|
|
139
|
|
|
175
|
|
|||
Total operating expense
|
471
|
|
|
420
|
|
|
390
|
|
|||
Income before income taxes and equity in undistributed net income of subsidiaries
|
3,946
|
|
|
2,940
|
|
|
3,410
|
|
|||
Income tax benefits
|
(60
|
)
|
|
(54
|
)
|
|
(52
|
)
|
|||
Income before equity in undistributed net income of subsidiaries
|
4,006
|
|
|
2,994
|
|
|
3,462
|
|
|||
Equity in undistributed net income of subsidiaries:
|
|
|
|
|
|
||||||
Bank subsidiaries and bank holding company
|
1,199
|
|
|
2,126
|
|
|
1,974
|
|
|||
Non-bank subsidiaries
|
164
|
|
|
181
|
|
|
(98
|
)
|
|||
Net income
|
$
|
5,369
|
|
|
$
|
5,301
|
|
|
$
|
5,338
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
||||||
Net pension and other postretirement benefit plan activity arising during the period
|
(2
|
)
|
|
1
|
|
|
1
|
|
|||
Other comprehensive income (loss)
|
(2
|
)
|
|
1
|
|
|
1
|
|
|||
Comprehensive income
|
$
|
5,367
|
|
|
$
|
5,302
|
|
|
$
|
5,339
|
|
December 31 – in millions
|
2019
|
|
|
2018
|
|
||
Assets
|
|
|
|
||||
Cash held at banking subsidiary
|
$
|
6
|
|
|
$
|
6
|
|
Restricted deposits with banking subsidiary
|
175
|
|
|
175
|
|
||
Nonrestricted interest-earning deposits
|
7,024
|
|
|
4,655
|
|
||
Investments in:
|
|
|
|
||||
Bank subsidiaries and bank holding company
|
48,654
|
|
|
45,863
|
|
||
Non-bank subsidiaries
|
2,054
|
|
|
1,886
|
|
||
Loans with affiliates
|
730
|
|
|
1,397
|
|
||
Other assets
|
1,512
|
|
|
1,159
|
|
||
Total assets
|
$
|
60,155
|
|
|
$
|
55,141
|
|
Liabilities
|
|
|
|
||||
Subordinated debt (a)
|
$
|
986
|
|
|
$
|
1,652
|
|
Senior debt (a)
|
8,849
|
|
|
5,061
|
|
||
Other borrowed funds from affiliates
|
307
|
|
|
79
|
|
||
Accrued expenses and other liabilities
|
699
|
|
|
619
|
|
||
Total liabilities
|
10,841
|
|
|
7,411
|
|
||
Equity
|
|
|
|
||||
Shareholders’ equity
|
49,314
|
|
|
47,730
|
|
||
Total liabilities and equity
|
$
|
60,155
|
|
|
$
|
55,141
|
|
(a)
|
See Note 10 Borrowed Funds for additional information on contractual rates and maturity dates of senior debt and subordinated debt for parent company.
|
Year ended December 31 – in millions
|
|
Interest Paid
|
|
|
Income Tax Refunds/(Payments)
|
|
||
2019
|
|
$
|
300
|
|
|
$
|
26
|
|
2018
|
|
$
|
288
|
|
|
$
|
88
|
|
2017
|
|
$
|
287
|
|
|
$
|
40
|
|
Year ended December 31 – in millions
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
Operating Activities
|
|
|
|
|
|
||||||
Net income
|
$
|
5,369
|
|
|
$
|
5,301
|
|
|
$
|
5,338
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Equity in undistributed net earnings of subsidiaries
|
(1,363
|
)
|
|
(2,307
|
)
|
|
(1,974
|
)
|
|||
Return on investment in subsidiary
|
|
|
|
|
|
98
|
|
||||
Other
|
218
|
|
|
155
|
|
|
194
|
|
|||
Net cash provided (used) by operating activities
|
$
|
4,224
|
|
|
$
|
3,149
|
|
|
$
|
3,656
|
|
Investing Activities
|
|
|
|
|
|
||||||
Net change in loans and securities from affiliates
|
$
|
664
|
|
|
$
|
540
|
|
|
$
|
114
|
|
Net change in nonrestricted interest-earning deposits
|
(2,369
|
)
|
|
1,145
|
|
|
(1,116
|
)
|
|||
Other
|
(8
|
)
|
|
2
|
|
|
|
|
|||
Net cash provided (used) by investing activities
|
$
|
(1,713
|
)
|
|
$
|
1,687
|
|
|
$
|
(1,002
|
)
|
Financing Activities
|
|
|
|
|
|
||||||
Net change in other borrowed funds from affiliates
|
$
|
228
|
|
|
$
|
(29
|
)
|
|
$
|
316
|
|
Proceeds from long-term borrowings
|
4,180
|
|
|
498
|
|
|
1,325
|
|
|||
Repayments of long-term borrowings
|
(1,300
|
)
|
|
(553
|
)
|
|
(580
|
)
|
|||
Net change in commercial paper
|
|
|
(100
|
)
|
|
100
|
|
||||
Common and treasury stock issuances
|
90
|
|
|
69
|
|
|
132
|
|
|||
Acquisition of treasury stock
|
(3,578
|
)
|
|
(2,877
|
)
|
|
(2,447
|
)
|
|||
Preferred stock cash dividends paid
|
(236
|
)
|
|
(236
|
)
|
|
(236
|
)
|
|||
Common stock cash dividends paid
|
(1,895
|
)
|
|
(1,603
|
)
|
|
(1,264
|
)
|
|||
Net cash provided (used) by financing activities
|
$
|
(2,511
|
)
|
|
$
|
(4,831
|
)
|
|
$
|
(2,654
|
)
|
Net increase (decrease) in cash and due from banks
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
—
|
|
Cash and restricted deposits held at banking subsidiary at beginning of year
|
181
|
|
|
176
|
|
|
176
|
|
|||
Cash and restricted deposits held at banking subsidiary at end of year
|
$
|
181
|
|
|
$
|
181
|
|
|
$
|
176
|
|
•
|
Retail Banking
|
•
|
Corporate & Institutional Banking
|
•
|
Asset Management Group
|
•
|
BlackRock
|
•
|
Wealth Management provides products and services to individuals and their families including investment and retirement planning, customized investment management, private banking, and trust management and administration for individuals and their families.
|
•
|
Our Hawthorn unit provides multi-generational family planning including estate, financial, tax planning, fiduciary, investment management and consulting, private banking, personal administrative services, asset custody and customized performance reporting to ultra high net worth clients.
|
•
|
Institutional asset management provides outsourced chief investment officer, custody, private real estate, cash and fixed income client solutions, and fiduciary retirement advisory services to institutional clients including corporations, healthcare systems, insurance companies, unions, municipalities and non-profits.
|
Year ended December 31
In millions |
|
Retail
Banking
|
|
|
Corporate &
Institutional
Banking
|
|
|
Asset
Management
Group
|
|
|
BlackRock
|
|
|
Other
|
|
|
Consolidated (a)
|
|
||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income Statement
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
|
$
|
5,520
|
|
|
$
|
3,637
|
|
|
$
|
288
|
|
|
|
|
$
|
520
|
|
|
$
|
9,965
|
|
||
Noninterest income
|
|
2,648
|
|
|
2,537
|
|
|
991
|
|
|
$
|
999
|
|
|
687
|
|
|
7,862
|
|
|||||
Total revenue
|
|
8,168
|
|
|
6,174
|
|
|
1,279
|
|
|
999
|
|
|
1,207
|
|
|
17,827
|
|
||||||
Provision for credit losses (benefit)
|
|
517
|
|
|
284
|
|
|
(1
|
)
|
|
|
|
(27
|
)
|
|
773
|
|
|||||||
Depreciation and amortization
|
|
230
|
|
|
198
|
|
|
62
|
|
|
|
|
545
|
|
|
1,035
|
|
|||||||
Other noninterest expense
|
|
5,831
|
|
|
2,615
|
|
|
877
|
|
|
|
|
|
216
|
|
|
9,539
|
|
||||||
Income (loss) before income taxes (benefit) and
noncontrolling interests |
|
1,590
|
|
|
3,077
|
|
|
341
|
|
|
999
|
|
|
473
|
|
|
6,480
|
|
||||||
Income taxes (benefit)
|
|
377
|
|
|
629
|
|
|
79
|
|
|
161
|
|
|
(184
|
)
|
|
1,062
|
|
||||||
Net income
|
|
$
|
1,213
|
|
|
$
|
2,448
|
|
|
$
|
262
|
|
|
$
|
838
|
|
|
$
|
657
|
|
|
$
|
5,418
|
|
Average Assets (b)
|
|
$
|
92,959
|
|
|
$
|
164,243
|
|
|
$
|
7,360
|
|
|
$
|
8,558
|
|
|
$
|
127,215
|
|
|
$
|
400,335
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income Statement
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
|
$
|
5,119
|
|
|
$
|
3,551
|
|
|
$
|
287
|
|
|
|
|
$
|
764
|
|
|
$
|
9,721
|
|
||
Noninterest income
|
|
2,631
|
|
|
2,406
|
|
|
892
|
|
|
$
|
935
|
|
|
547
|
|
|
7,411
|
|
|||||
Total revenue
|
|
7,750
|
|
|
5,957
|
|
|
1,179
|
|
|
935
|
|
|
1,311
|
|
|
17,132
|
|
||||||
Provision for credit losses (benefit)
|
|
373
|
|
|
85
|
|
|
2
|
|
|
|
|
(52
|
)
|
|
408
|
|
|||||||
Depreciation and amortization
|
|
206
|
|
|
186
|
|
|
52
|
|
|
|
|
496
|
|
|
940
|
|
|||||||
Other noninterest expense
|
|
5,772
|
|
|
2,520
|
|
|
861
|
|
|
|
|
|
203
|
|
|
9,356
|
|
||||||
Income (loss) before income taxes (benefit) and
noncontrolling interests |
|
1,399
|
|
|
3,166
|
|
|
264
|
|
|
935
|
|
|
664
|
|
|
6,428
|
|
||||||
Income taxes (benefit)
|
|
335
|
|
|
658
|
|
|
62
|
|
|
154
|
|
|
(127
|
)
|
|
1,082
|
|
||||||
Net income
|
|
$
|
1,064
|
|
|
$
|
2,508
|
|
|
$
|
202
|
|
|
$
|
781
|
|
|
$
|
791
|
|
|
$
|
5,346
|
|
Average Assets (b)
|
|
$
|
89,739
|
|
|
$
|
154,119
|
|
|
$
|
7,423
|
|
|
$
|
8,061
|
|
|
$
|
118,893
|
|
|
$
|
378,235
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income Statement
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
|
$
|
4,625
|
|
|
$
|
3,396
|
|
|
$
|
287
|
|
|
|
|
$
|
800
|
|
|
$
|
9,108
|
|
||
Noninterest income
|
|
2,236
|
|
|
2,271
|
|
|
881
|
|
|
$
|
1,078
|
|
|
755
|
|
|
7,221
|
|
|||||
Total revenue
|
|
6,861
|
|
|
5,667
|
|
|
1,168
|
|
|
1,078
|
|
|
1,555
|
|
|
16,329
|
|
||||||
Provision for credit losses (benefit)
|
|
347
|
|
|
160
|
|
|
1
|
|
|
|
|
(67
|
)
|
|
441
|
|
|||||||
Depreciation and amortization
|
|
177
|
|
|
184
|
|
|
50
|
|
|
|
|
510
|
|
|
921
|
|
|||||||
Other noninterest expense
|
|
5,569
|
|
|
2,370
|
|
|
855
|
|
|
|
|
|
683
|
|
|
9,477
|
|
||||||
Income (loss) before income taxes (benefit) and
noncontrolling interests
|
|
768
|
|
|
2,953
|
|
|
262
|
|
|
1,078
|
|
|
429
|
|
|
5,490
|
|
||||||
Income taxes (benefit)
|
|
321
|
|
|
520
|
|
|
75
|
|
|
(686
|
)
|
|
(128
|
)
|
|
102
|
|
||||||
Net income
|
|
$
|
447
|
|
|
$
|
2,433
|
|
|
$
|
187
|
|
|
$
|
1,764
|
|
|
$
|
557
|
|
|
$
|
5,388
|
|
Average Assets (b)
|
|
$
|
88,663
|
|
|
$
|
148,414
|
|
|
$
|
7,511
|
|
|
$
|
7,677
|
|
|
$
|
119,504
|
|
|
$
|
371,769
|
|
(a)
|
There were no material intersegment revenues for 2019, 2018 and 2017.
|
(b)
|
Period-end balances for BlackRock.
|
|
Year ended December 31
|
|
|||||
In millions
|
2019
|
2018
|
|
||||
Product
|
|
|
|
||||
Deposit account fees
|
$
|
642
|
|
$
|
618
|
|
|
Debit card fees
|
535
|
|
505
|
|
|
||
Brokerage fees
|
356
|
|
350
|
|
|
||
Merchant services
|
216
|
|
212
|
|
|
||
Net credit card fees (a)
|
186
|
|
189
|
|
|
||
Other
|
255
|
|
284
|
|
|
||
Total in-scope noninterest income by product
|
$
|
2,190
|
|
$
|
2,158
|
|
|
Reconciliation to total Retail Banking noninterest income
|
|
|
|
||||
Total in-scope noninterest income
|
$
|
2,190
|
|
$
|
2,158
|
|
|
Total out-of-scope noninterest income (b)
|
458
|
|
473
|
|
|
||
Total Retail Banking noninterest income
|
$
|
2,648
|
|
$
|
2,631
|
|
|
(a)
|
Net credit card fees consists of interchange fees of $498 million and $452 million and credit card reward costs of $312 million and $263 million for the years ended December 31, 2019 and 2018, respectively.
|
(b)
|
Out-of-scope noninterest income includes revenue streams that fall under the scope of other accounting and disclosure requirements outside of Topic 606.
|
|
Year ended December 31
|
|
|||||
In millions
|
2019
|
2018
|
|
||||
Product
|
|
|
|
||||
Treasury management fees
|
$
|
840
|
|
$
|
776
|
|
|
Capital markets fees
|
547
|
|
510
|
|
|
||
Commercial mortgage banking activities
|
102
|
|
87
|
|
|
||
Other
|
77
|
|
81
|
|
|
||
Total in-scope noninterest income by product
|
$
|
1,566
|
|
$
|
1,454
|
|
|
Reconciliation to total Corporate & Institutional Banking noninterest income
|
|
|
|
||||
Total in-scope noninterest income
|
$
|
1,566
|
|
$
|
1,454
|
|
|
Total out-of-scope noninterest income (a)
|
971
|
|
952
|
|
|
||
Total Corporate & Institutional Banking noninterest income
|
$
|
2,537
|
|
$
|
2,406
|
|
|
(a)
|
Out-of-scope noninterest income includes revenue streams that fall under the scope of other accounting and disclosure requirements outside of Topic 606.
|
|
Year ended December 31
|
|
|||||
In millions
|
2019
|
2018
|
|
||||
Customer Type
|
|
|
|
||||
Personal
|
$
|
620
|
|
$
|
611
|
|
|
Institutional
|
242
|
|
272
|
|
|
||
Total in-scope noninterest income by customer type
|
$
|
862
|
|
$
|
883
|
|
|
Reconciliation to Asset Management Group noninterest income
|
|
|
|
||||
Total in-scope noninterest income
|
$
|
862
|
|
$
|
883
|
|
|
Total out-of-scope noninterest income (a)
|
129
|
|
9
|
|
|
||
Total Asset Management Group noninterest income
|
$
|
991
|
|
$
|
892
|
|
|
(a)
|
Out-of-scope noninterest income includes revenue streams that fall under the scope of other accounting and disclosure requirements outside of Topic 606.
|
In millions
|
December 31, 2019
|
|
||
Lease receivables (a)
|
$
|
7,353
|
|
|
Unguaranteed residual asset values
|
741
|
|
|
|
Unearned income
|
(939
|
)
|
|
|
Equipment lease financing
|
$
|
7,155
|
|
|
(a)
|
In certain cases, PNC obtains third-party residual value insurance to reduce its residual risk. The carrying value of residual assets with third-party residual value insurance for at least a portion of the asset value was $.3 billion.
|
In millions
|
Operating Leases
|
Sales-type and Direct Financing Leases
|
||||
2020
|
$
|
159
|
|
$
|
1,620
|
|
2021
|
159
|
|
1,432
|
|
||
2022
|
112
|
|
1,161
|
|
||
2023
|
136
|
|
801
|
|
||
2024
|
128
|
|
668
|
|
||
2025 and thereafter
|
192
|
|
1,671
|
|
||
Total future minimum lease payments
|
$
|
886
|
|
$
|
7,353
|
|
|
December 31, 2019
|
|
|
Weighted-average remaining lease term (years)
|
9
|
|
|
Weighted-average discount rate
|
2.42
|
%
|
|
In millions
|
|
December 31, 2019
|
||
2020
|
|
$
|
355
|
|
2021
|
|
339
|
|
|
2022
|
|
307
|
|
|
2023
|
|
275
|
|
|
2024
|
|
226
|
|
|
2025 and thereafter
|
|
923
|
|
|
Total future lease payments
|
|
$
|
2,425
|
|
Less: Interest
|
|
255
|
|
|
Present value of operating lease liabilities
|
|
$
|
2,170
|
|
•
|
$1.0 billion of senior floating rate notes with a maturity date of February 24, 2023. Interest is payable quarterly at the 3-month LIBOR rate, reset quarterly, plus 32.5 basis points, on February 24, May 24, August 24, and November 24, beginning on May 24, 2020.
|
•
|
$500 million of senior fixed-to-floating rate notes with a maturity date of February 24, 2023. Interest is payable semi-annually at a fixed rate of 1.74% per annum, on February 24 and August 24 of each year, beginning on August 24, 2020. Beginning on February 24, 2022, interest is payable quarterly at the floating rate equal to the 3-month LIBOR rate, reset quarterly, plus 32.3 basis points, on February 24, May 24, August 24, and November 24, commencing on May 24, 2022.
|
Dollars in millions, except per share data
|
2019
|
|
|
2018
|
|
||||||||||||||||||||||||||||
Fourth
|
|
|
Third
|
|
|
Second
|
|
|
First
|
|
|
|
Fourth
|
|
|
Third
|
|
|
Second
|
|
|
First
|
|
|
|||||||||
Summary of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Interest income
|
$
|
3,334
|
|
|
$
|
3,503
|
|
|
$
|
3,497
|
|
|
$
|
3,428
|
|
|
|
$
|
3,359
|
|
|
$
|
3,223
|
|
|
$
|
3,082
|
|
|
$
|
2,918
|
|
|
Interest expense
|
846
|
|
|
999
|
|
|
999
|
|
|
953
|
|
|
|
878
|
|
|
757
|
|
|
669
|
|
|
557
|
|
|
||||||||
Net interest income
|
2,488
|
|
|
2,504
|
|
|
2,498
|
|
|
2,475
|
|
|
|
2,481
|
|
|
2,466
|
|
|
2,413
|
|
|
2,361
|
|
|
||||||||
Noninterest income
|
2,121
|
|
|
1,989
|
|
|
1,941
|
|
|
1,811
|
|
|
|
1,859
|
|
|
1,891
|
|
|
1,911
|
|
|
1,750
|
|
|
||||||||
Total revenue
|
4,609
|
|
|
4,493
|
|
|
4,439
|
|
|
4,286
|
|
|
|
4,340
|
|
|
4,357
|
|
|
4,324
|
|
|
4,111
|
|
|
||||||||
Provision for credit losses
|
221
|
|
|
183
|
|
|
180
|
|
|
189
|
|
|
|
148
|
|
|
88
|
|
|
80
|
|
|
92
|
|
|
||||||||
Noninterest expense
|
2,762
|
|
|
2,623
|
|
|
2,611
|
|
|
2,578
|
|
|
|
2,577
|
|
|
2,608
|
|
|
2,584
|
|
|
2,527
|
|
|
||||||||
Income before income taxes (benefit) and
noncontrolling interests
|
1,626
|
|
|
1,687
|
|
|
1,648
|
|
|
1,519
|
|
|
|
1,615
|
|
|
1,661
|
|
|
1,660
|
|
|
1,492
|
|
|
||||||||
Income taxes (benefit)
|
245
|
|
|
295
|
|
|
274
|
|
|
248
|
|
|
|
264
|
|
|
261
|
|
|
304
|
|
|
253
|
|
|
||||||||
Net income
|
1,381
|
|
|
1,392
|
|
|
1,374
|
|
|
1,271
|
|
|
|
1,351
|
|
|
1,400
|
|
|
1,356
|
|
|
1,239
|
|
|
||||||||
Less: Net income attributable to noncontrolling interests
|
14
|
|
|
13
|
|
|
12
|
|
|
10
|
|
|
|
14
|
|
|
11
|
|
|
10
|
|
|
10
|
|
|
||||||||
Preferred stock dividends and discount accretion
and redemptions
|
56
|
|
|
64
|
|
|
56
|
|
|
64
|
|
|
|
56
|
|
|
64
|
|
|
56
|
|
|
64
|
|
|
||||||||
Net income attributable to common shareholders
|
$
|
1,311
|
|
|
$
|
1,315
|
|
|
$
|
1,306
|
|
|
$
|
1,197
|
|
|
|
$
|
1,281
|
|
|
$
|
1,325
|
|
|
$
|
1,290
|
|
|
$
|
1,165
|
|
|
Per Common Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Book value
|
$
|
104.59
|
|
|
$
|
103.37
|
|
|
$
|
101.53
|
|
|
$
|
98.47
|
|
|
|
$
|
95.72
|
|
|
$
|
93.22
|
|
|
$
|
92.26
|
|
|
$
|
91.39
|
|
|
Cash dividends declared (a)
|
$
|
1.15
|
|
|
$
|
1.15
|
|
|
$
|
.95
|
|
|
$
|
.95
|
|
|
|
$
|
.95
|
|
|
$
|
.95
|
|
|
$
|
.75
|
|
|
$
|
.75
|
|
|
Basic earnings from net income
|
$
|
2.98
|
|
|
$
|
2.95
|
|
|
$
|
2.89
|
|
|
$
|
2.62
|
|
|
|
$
|
2.77
|
|
|
$
|
2.84
|
|
|
$
|
2.74
|
|
|
$
|
2.45
|
|
|
Diluted earnings from net income
|
$
|
2.97
|
|
|
$
|
2.94
|
|
|
$
|
2.88
|
|
|
$
|
2.61
|
|
|
|
$
|
2.75
|
|
|
$
|
2.82
|
|
|
$
|
2.72
|
|
|
$
|
2.43
|
|
|
(a)
|
On January 2, 2020, we declared a quarterly common stock cash dividend of $1.15 per share payable on February 5, 2020.
|
|
|
2019
|
|
2018
|
|
2017
|
|
|||||||||||||||||||||||||||
Taxable-equivalent basis
Dollars in millions
|
|
Average
Balances
|
|
|
Interest
Income/
Expense
|
|
|
Average
Yields/
Rates
|
|
|
Average
Balances
|
|
|
Interest
Income/
Expense
|
|
|
Average
Yields/
Rates
|
|
|
Average
Balances
|
|
|
Interest
Income/
Expense
|
|
|
Average
Yields/
Rates
|
|
|
||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Investment securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Securities available for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Residential mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Agency
|
|
$
|
31,526
|
|
|
$
|
867
|
|
|
2.75
|
%
|
|
$
|
27,156
|
|
|
$
|
740
|
|
|
2.72
|
%
|
|
$
|
25,766
|
|
|
$
|
662
|
|
|
2.57
|
%
|
|
Non-agency
|
|
1,746
|
|
|
141
|
|
|
8.08
|
%
|
|
2,196
|
|
|
146
|
|
|
6.65
|
%
|
|
2,851
|
|
|
153
|
|
|
5.37
|
%
|
|
||||||
Commercial mortgage-backed
|
|
5,676
|
|
|
162
|
|
|
2.85
|
%
|
|
4,545
|
|
|
128
|
|
|
2.82
|
%
|
|
5,193
|
|
|
156
|
|
|
3.00
|
%
|
|
||||||
Asset-backed
|
|
5,199
|
|
|
172
|
|
|
3.31
|
%
|
|
5,242
|
|
|
165
|
|
|
3.15
|
%
|
|
5,681
|
|
|
147
|
|
|
2.59
|
%
|
|
||||||
U.S. Treasury and government agencies
|
|
17,642
|
|
|
435
|
|
|
2.47
|
%
|
|
16,319
|
|
|
373
|
|
|
2.29
|
%
|
|
13,178
|
|
|
235
|
|
|
1.78
|
%
|
|
||||||
Other
|
|
3,200
|
|
|
107
|
|
|
3.34
|
%
|
|
4,064
|
|
|
142
|
|
|
3.49
|
%
|
|
5,083
|
|
|
158
|
|
|
3.11
|
%
|
|
||||||
Total securities available for sale
|
|
64,989
|
|
|
1,884
|
|
|
2.90
|
%
|
|
59,522
|
|
|
1,694
|
|
|
2.85
|
%
|
|
57,752
|
|
|
1,511
|
|
|
2.62
|
%
|
|
||||||
Securities held to maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Residential mortgage-backed
|
|
15,421
|
|
|
438
|
|
|
2.84
|
%
|
|
15,670
|
|
|
456
|
|
|
2.91
|
%
|
|
13,049
|
|
|
364
|
|
|
2.79
|
%
|
|
||||||
Commercial mortgage-backed
|
|
553
|
|
|
21
|
|
|
3.80
|
%
|
|
767
|
|
|
29
|
|
|
3.78
|
%
|
|
1,255
|
|
|
51
|
|
|
4.06
|
%
|
|
||||||
Asset-backed
|
|
120
|
|
|
5
|
|
|
4.17
|
%
|
|
192
|
|
|
7
|
|
|
3.65
|
%
|
|
405
|
|
|
10
|
|
|
2.47
|
%
|
|
||||||
U.S. Treasury and government agencies
|
|
767
|
|
|
22
|
|
|
2.87
|
%
|
|
749
|
|
|
21
|
|
|
2.80
|
%
|
|
591
|
|
|
18
|
|
|
3.05
|
%
|
|
||||||
Other
|
|
1,816
|
|
|
80
|
|
|
4.41
|
%
|
|
1,884
|
|
|
82
|
|
|
4.35
|
%
|
|
2,005
|
|
|
105
|
|
|
5.24
|
%
|
|
||||||
Total securities held to maturity
|
|
18,677
|
|
|
566
|
|
|
3.03
|
%
|
|
19,262
|
|
|
595
|
|
|
3.09
|
%
|
|
17,305
|
|
|
548
|
|
|
3.17
|
%
|
|
||||||
Total investment securities
|
|
83,666
|
|
|
2,450
|
|
|
2.93
|
%
|
|
78,784
|
|
|
2,289
|
|
|
2.91
|
%
|
|
75,057
|
|
|
2,059
|
|
|
2.74
|
%
|
|
||||||
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial
|
|
123,524
|
|
|
5,157
|
|
|
4.17
|
%
|
|
113,837
|
|
|
4,606
|
|
|
4.05
|
%
|
|
107,752
|
|
|
3,778
|
|
|
3.51
|
%
|
|
||||||
Commercial real estate
|
|
28,526
|
|
|
1,235
|
|
|
4.33
|
%
|
|
28,756
|
|
|
1,193
|
|
|
4.15
|
%
|
|
29,487
|
|
|
1,054
|
|
|
3.57
|
%
|
|
||||||
Equipment lease financing
|
|
7,255
|
|
|
285
|
|
|
3.93
|
%
|
|
7,437
|
|
|
267
|
|
|
3.59
|
%
|
|
7,618
|
|
|
248
|
|
|
3.26
|
%
|
|
||||||
Consumer
|
|
55,671
|
|
|
3,083
|
|
|
5.54
|
%
|
|
55,438
|
|
|
2,817
|
|
|
5.08
|
%
|
|
56,262
|
|
|
2,585
|
|
|
4.59
|
%
|
|
||||||
Residential real estate
|
|
20,040
|
|
|
844
|
|
|
4.21
|
%
|
|
17,810
|
|
|
784
|
|
|
4.40
|
%
|
|
16,152
|
|
|
725
|
|
|
4.49
|
%
|
|
||||||
Total loans
|
|
235,016
|
|
|
10,604
|
|
|
4.51
|
%
|
|
223,278
|
|
|
9,667
|
|
|
4.33
|
%
|
|
217,271
|
|
|
8,390
|
|
|
3.86
|
%
|
|
||||||
Interest-earning deposits with banks
|
|
16,878
|
|
|
353
|
|
|
2.09
|
%
|
|
20,603
|
|
|
379
|
|
|
1.84
|
%
|
|
24,043
|
|
|
267
|
|
|
1.11
|
%
|
|
||||||
Other interest-earning assets
|
|
12,425
|
|
|
458
|
|
|
3.69
|
%
|
|
8,093
|
|
|
362
|
|
|
4.47
|
%
|
|
8,983
|
|
|
313
|
|
|
3.48
|
%
|
|
||||||
Total interest-earning assets/interest income
|
|
347,985
|
|
|
13,865
|
|
|
3.98
|
%
|
|
330,758
|
|
|
12,697
|
|
|
3.84
|
%
|
|
325,354
|
|
|
11,029
|
|
|
3.39
|
%
|
|
||||||
Noninterest-earning assets
|
|
52,350
|
|
|
|
|
|
|
47,477
|
|
|
|
|
|
|
46,415
|
|
|
|
|
|
|
||||||||||||
Total assets
|
|
$
|
400,335
|
|
|
|
|
|
|
$
|
378,235
|
|
|
|
|
|
|
$
|
371,769
|
|
|
|
|
|
|
|||||||||
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Money market
|
|
$
|
55,505
|
|
|
609
|
|
|
1.10
|
%
|
|
$
|
56,353
|
|
|
416
|
|
|
.74
|
%
|
|
$
|
62,331
|
|
|
217
|
|
|
.35
|
%
|
|
|||
Demand
|
|
65,729
|
|
|
354
|
|
|
.54
|
%
|
|
60,599
|
|
|
190
|
|
|
.31
|
%
|
|
57,045
|
|
|
76
|
|
|
.13
|
%
|
|
||||||
Savings
|
|
62,938
|
|
|
696
|
|
|
1.11
|
%
|
|
51,908
|
|
|
428
|
|
|
.82
|
%
|
|
42,749
|
|
|
197
|
|
|
.46
|
%
|
|
||||||
Time deposits
|
|
20,416
|
|
|
327
|
|
|
1.60
|
%
|
|
17,501
|
|
|
195
|
|
|
1.11
|
%
|
|
17,322
|
|
|
133
|
|
|
.77
|
%
|
|
||||||
Total interest-bearing deposits
|
|
204,588
|
|
|
1,986
|
|
|
.97
|
%
|
|
186,361
|
|
|
1,229
|
|
|
.66
|
%
|
|
179,447
|
|
|
623
|
|
|
.35
|
%
|
|
||||||
Borrowed funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Federal Home Loan Bank borrowings
|
|
22,253
|
|
|
569
|
|
|
2.56
|
%
|
|
20,970
|
|
|
478
|
|
|
2.28
|
%
|
|
19,890
|
|
|
261
|
|
|
1.31
|
%
|
|
||||||
Bank notes and senior debt
|
|
26,781
|
|
|
869
|
|
|
3.24
|
%
|
|
27,855
|
|
|
818
|
|
|
2.94
|
%
|
|
25,564
|
|
|
517
|
|
|
2.02
|
%
|
|
||||||
Subordinated debt
|
|
5,588
|
|
|
214
|
|
|
3.83
|
%
|
|
5,292
|
|
|
224
|
|
|
4.23
|
%
|
|
6,273
|
|
|
222
|
|
|
3.54
|
%
|
|
||||||
Other
|
|
6,906
|
|
|
159
|
|
|
2.30
|
%
|
|
5,189
|
|
|
112
|
|
|
2.16
|
%
|
|
5,162
|
|
|
83
|
|
|
1.61
|
%
|
|
||||||
Total borrowed funds
|
|
61,528
|
|
|
1,811
|
|
|
2.94
|
%
|
|
59,306
|
|
|
1,632
|
|
|
2.75
|
%
|
|
56,889
|
|
|
1,083
|
|
|
1.90
|
%
|
|
||||||
Total interest-bearing liabilities/interest expense
|
|
266,116
|
|
|
3,797
|
|
|
1.43
|
%
|
|
245,667
|
|
|
2,861
|
|
|
1.16
|
%
|
|
236,336
|
|
|
1,706
|
|
|
.72
|
%
|
|
||||||
Noninterest-bearing liabilities and equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Noninterest-bearing deposits
|
|
72,212
|
|
|
|
|
|
|
76,303
|
|
|
|
|
|
|
78,634
|
|
|
|
|
|
|
||||||||||||
Accrued expenses and other liabilities
|
|
13,371
|
|
|
|
|
|
|
9,440
|
|
|
|
|
|
|
10,518
|
|
|
|
|
|
|
||||||||||||
Equity
|
|
48,636
|
|
|
|
|
|
|
46,825
|
|
|
|
|
|
|
46,281
|
|
|
|
|
|
|
||||||||||||
Total liabilities and equity
|
|
$
|
400,335
|
|
|
|
|
|
|
$
|
378,235
|
|
|
|
|
|
|
$
|
371,769
|
|
|
|
|
|
|
|||||||||
Interest rate spread
|
|
|
|
|
|
2.55
|
%
|
|
|
|
|
|
2.68
|
%
|
|
|
|
|
|
2.67
|
%
|
|
||||||||||||
Benefit from use of noninterest bearing sources
|
|
|
|
|
|
.34
|
|
|
|
|
|
|
.29
|
|
|
|
|
|
|
.20
|
|
|
||||||||||||
Net interest income/margin
|
|
|
|
$
|
10,068
|
|
|
2.89
|
%
|
|
|
|
$
|
9,836
|
|
|
2.97
|
%
|
|
|
|
$
|
9,323
|
|
|
2.87
|
%
|
|
(a)
|
Nonaccrual loans are included in loans, net of unearned income. The impact of financial derivatives used in interest rate risk management is included in the interest income/expense and average yields/rates of the related assets and liabilities. Basis adjustments related to hedged items are included in noninterest-earning assets and noninterest-bearing liabilities. Average balances of securities are based on amortized historical cost (excluding adjustments to fair value, which are included in other assets). Average balances for certain loans and borrowed funds accounted for at fair value are included in noninterest-earning assets and noninterest-bearing liabilities, with changes in fair value recorded in Noninterest income.
|
(b)
|
Loan fees for the years ended December 31, 2019, 2018 and 2017 were $163 million, $139 million and $126 million, respectively.
|
(c)
|
Interest income calculated as taxable-equivalent interest income. To provide more meaningful comparisons of interest income and yields for all interest-earning assets, as well as net interest margins, we use interest income on a taxable-equivalent basis in calculating average yields and net interest margin by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under GAAP. See Reconciliation of Taxable-Equivalent Net Interest Income in this Statistical Information section for more information.
|
|
|
2019/2018
|
|
|
2018/2017
|
|
||||||||||||||||||||
Taxable-equivalent basis
|
|
Increase/(Decrease) in Income/
Expense Due to Changes in:
|
|
|
Increase/(Decrease) in Income/
Expense Due to Changes in: |
|
||||||||||||||||||||
In millions
|
|
Volume
|
|
Rate
|
|
Total
|
|
|
Volume
|
|
Rate
|
|
Total
|
|
||||||||||||
Interest-Earning Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities available for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency
|
|
$
|
119
|
|
|
$
|
8
|
|
|
$
|
127
|
|
|
|
$
|
37
|
|
|
$
|
41
|
|
|
$
|
78
|
|
|
Non-agency
|
|
$
|
(33
|
)
|
|
$
|
28
|
|
|
(5
|
)
|
|
|
$
|
(39
|
)
|
|
$
|
32
|
|
|
(7
|
)
|
|
||
Commercial mortgage-backed
|
|
$
|
32
|
|
|
$
|
2
|
|
|
34
|
|
|
|
$
|
(18
|
)
|
|
$
|
(10
|
)
|
|
(28
|
)
|
|
||
Asset-backed
|
|
$
|
(1
|
)
|
|
$
|
8
|
|
|
7
|
|
|
|
$
|
(12
|
)
|
|
$
|
30
|
|
|
18
|
|
|
||
U.S. Treasury and government agencies
|
|
$
|
32
|
|
|
$
|
30
|
|
|
62
|
|
|
|
$
|
63
|
|
|
$
|
75
|
|
|
138
|
|
|
||
Other
|
|
$
|
(29
|
)
|
|
$
|
(6
|
)
|
|
(35
|
)
|
|
|
$
|
(34
|
)
|
|
$
|
18
|
|
|
(16
|
)
|
|
||
Total securities available for sale
|
|
$
|
160
|
|
|
$
|
30
|
|
|
190
|
|
|
|
$
|
48
|
|
|
$
|
135
|
|
|
183
|
|
|
||
Securities held to maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage-backed
|
|
$
|
(7
|
)
|
|
$
|
(12
|
)
|
|
(19
|
)
|
|
|
$
|
75
|
|
|
$
|
17
|
|
|
92
|
|
|
||
Commercial mortgage-backed
|
|
$
|
(8
|
)
|
|
|
|
|
(8
|
)
|
|
|
$
|
(18
|
)
|
|
$
|
(4
|
)
|
|
(22
|
)
|
|
|||
Asset-backed
|
|
$
|
(3
|
)
|
|
$
|
1
|
|
|
(2
|
)
|
|
|
$
|
(7
|
)
|
|
$
|
4
|
|
|
(3
|
)
|
|
||
U.S. Treasury and government agencies
|
|
$
|
1
|
|
|
$
|
1
|
|
|
2
|
|
|
|
$
|
4
|
|
|
$
|
(1
|
)
|
|
3
|
|
|
||
Other
|
|
$
|
(3
|
)
|
|
$
|
1
|
|
|
(2
|
)
|
|
|
$
|
(6
|
)
|
|
$
|
(17
|
)
|
|
(23
|
)
|
|
||
Total securities held to maturity
|
|
$
|
(18
|
)
|
|
$
|
(11
|
)
|
|
(29
|
)
|
|
|
$
|
61
|
|
|
$
|
(14
|
)
|
|
47
|
|
|
||
Total investment securities
|
|
$
|
147
|
|
|
$
|
14
|
|
|
161
|
|
|
|
$
|
104
|
|
|
$
|
126
|
|
|
230
|
|
|
||
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
|
$
|
404
|
|
|
$
|
147
|
|
|
551
|
|
|
|
$
|
224
|
|
|
$
|
604
|
|
|
828
|
|
|
||
Commercial real estate
|
|
$
|
(10
|
)
|
|
$
|
52
|
|
|
42
|
|
|
|
$
|
(27
|
)
|
|
$
|
166
|
|
|
139
|
|
|
||
Equipment lease financing
|
|
$
|
(7
|
)
|
|
$
|
25
|
|
|
18
|
|
|
|
$
|
(6
|
)
|
|
$
|
25
|
|
|
19
|
|
|
||
Consumer
|
|
$
|
12
|
|
|
$
|
254
|
|
|
266
|
|
|
|
$
|
(39
|
)
|
|
$
|
271
|
|
|
232
|
|
|
||
Residential real estate
|
|
$
|
95
|
|
|
$
|
(35
|
)
|
|
60
|
|
|
|
$
|
73
|
|
|
$
|
(14
|
)
|
|
59
|
|
|
||
Total loans
|
|
$
|
521
|
|
|
$
|
416
|
|
|
937
|
|
|
|
$
|
237
|
|
|
$
|
1,040
|
|
|
1,277
|
|
|
||
Interest-earning deposits with banks
|
|
$
|
(74
|
)
|
|
$
|
48
|
|
|
(26
|
)
|
|
|
$
|
(42
|
)
|
|
$
|
154
|
|
|
112
|
|
|
||
Other interest-earning assets
|
|
$
|
168
|
|
|
$
|
(72
|
)
|
|
96
|
|
|
|
$
|
(33
|
)
|
|
$
|
82
|
|
|
49
|
|
|
||
Total interest-earning assets
|
|
$
|
687
|
|
|
$
|
481
|
|
|
$
|
1,168
|
|
|
|
$
|
185
|
|
|
$
|
1,483
|
|
|
$
|
1,668
|
|
|
Interest-Bearing Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Money market
|
|
$
|
(6
|
)
|
|
$
|
199
|
|
|
$
|
193
|
|
|
|
$
|
(23
|
)
|
|
$
|
222
|
|
|
$
|
199
|
|
|
Demand
|
|
$
|
17
|
|
|
$
|
147
|
|
|
164
|
|
|
|
$
|
5
|
|
|
$
|
109
|
|
|
114
|
|
|
||
Savings
|
|
$
|
101
|
|
|
$
|
167
|
|
|
268
|
|
|
|
$
|
49
|
|
|
$
|
182
|
|
|
231
|
|
|
||
Time deposits
|
|
$
|
36
|
|
|
$
|
96
|
|
|
132
|
|
|
|
$
|
1
|
|
|
$
|
61
|
|
|
62
|
|
|
||
Total interest-bearing deposits
|
|
$
|
130
|
|
|
$
|
627
|
|
|
757
|
|
|
|
$
|
25
|
|
|
$
|
581
|
|
|
606
|
|
|
||
Borrowed funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal Home Loan Bank borrowings
|
|
$
|
30
|
|
|
$
|
61
|
|
|
91
|
|
|
|
$
|
15
|
|
|
$
|
202
|
|
|
217
|
|
|
||
Bank notes and senior debt
|
|
$
|
(33
|
)
|
|
$
|
84
|
|
|
51
|
|
|
|
$
|
49
|
|
|
$
|
252
|
|
|
301
|
|
|
||
Subordinated debt
|
|
$
|
12
|
|
|
$
|
(22
|
)
|
|
(10
|
)
|
|
|
$
|
(38
|
)
|
|
$
|
40
|
|
|
2
|
|
|
||
Other
|
|
40
|
|
|
$
|
7
|
|
|
47
|
|
|
|
|
|
|
$
|
29
|
|
|
29
|
|
|
||||
Total borrowed funds
|
|
$
|
62
|
|
|
$
|
117
|
|
|
179
|
|
|
|
$
|
48
|
|
|
$
|
501
|
|
|
549
|
|
|
||
Total interest-bearing liabilities
|
|
$
|
246
|
|
|
$
|
690
|
|
|
936
|
|
|
|
$
|
70
|
|
|
$
|
1,085
|
|
|
1,155
|
|
|
||
Change in net interest income
|
|
$
|
502
|
|
|
$
|
(270
|
)
|
|
$
|
232
|
|
|
|
$
|
166
|
|
|
$
|
347
|
|
|
$
|
513
|
|
|
(a)
|
Changes attributable to rate/volume are prorated into rate and volume components.
|
(b)
|
Interest income calculated as taxable-equivalent interest income. To provide more meaningful comparisons of interest income, we use interest income on a taxable-equivalent basis by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under GAAP. See Reconciliation of Taxable-Equivalent Net Interest Income in this Statistical Information section for more information.
|
Year ended December 31
In millions
|
|
|
|||||||||||||||||||
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
|
|||||||
Net interest income (GAAP)
|
|
$
|
9,965
|
|
|
$
|
9,721
|
|
|
$
|
9,108
|
|
|
$
|
8,391
|
|
|
$
|
8,278
|
|
|
Taxable-equivalent adjustments
|
|
103
|
|
|
115
|
|
|
215
|
|
|
195
|
|
|
196
|
|
|
|||||
Net interest income (Non-GAAP)
|
|
$
|
10,068
|
|
|
$
|
9,836
|
|
|
$
|
9,323
|
|
|
$
|
8,586
|
|
|
$
|
8,474
|
|
|
(a)
|
The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of net interest income, we use interest income on a taxable-equivalent basis by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under GAAP.
|
Year ended December 31
In millions
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
|||
Noninterest income
|
|
|
|
|
|
|
||||||
Asset management
|
$
|
1,850
|
|
|
$
|
1,825
|
|
|
$
|
1,942
|
|
|
Consumer services
|
1,555
|
|
|
1,502
|
|
|
1,415
|
|
|
|||
Corporate services
|
1,914
|
|
|
1,849
|
|
|
1,742
|
|
|
|||
Residential mortgage
|
368
|
|
|
316
|
|
|
350
|
|
|
|||
Service charges on deposits
|
702
|
|
|
714
|
|
|
695
|
|
|
|||
Total fee income
|
6,389
|
|
|
6,206
|
|
|
6,144
|
|
|
|||
Other
|
1,473
|
|
|
1,205
|
|
|
1,077
|
|
|
|||
Total noninterest income
|
$
|
7,862
|
|
|
$
|
7,411
|
|
|
$
|
7,221
|
|
|
December 31
Dollars in millions, except per share data
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
|
|||||
Book value per common share
|
$
|
104.59
|
|
|
$
|
95.72
|
|
|
$
|
91.94
|
|
|
$
|
85.94
|
|
|
$
|
81.84
|
|
|
Tangible book value per common share
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Common shareholders’ equity
|
$
|
45,321
|
|
|
$
|
43,742
|
|
|
$
|
43,530
|
|
|
$
|
41,723
|
|
|
$
|
41,258
|
|
|
Goodwill and other intangible assets
|
(9,441
|
)
|
|
(9,467
|
)
|
|
(9,498
|
)
|
|
(9,376
|
)
|
|
(9,482
|
)
|
|
|||||
Deferred tax liabilities on Goodwill and other intangible assets
|
187
|
|
|
190
|
|
|
191
|
|
|
304
|
|
|
310
|
|
|
|||||
Tangible common shareholders’ equity
|
$
|
36,067
|
|
|
$
|
34,465
|
|
|
$
|
34,223
|
|
|
$
|
32,651
|
|
|
$
|
32,086
|
|
|
Period-end common shares outstanding (in millions)
|
433
|
|
|
457
|
|
|
473
|
|
|
485
|
|
|
504
|
|
|
|||||
Tangible book value per common share (Non-GAAP) (a)
|
$
|
83.30
|
|
|
$
|
75.42
|
|
|
$
|
72.28
|
|
|
$
|
67.26
|
|
|
$
|
63.65
|
|
|
(a)
|
We believe this non-GAAP financial measure serves as a useful tool to help evaluate the strength and discipline of a company’s capital management strategies and as an additional conservative measure of total company value.
|
December 31 – in millions
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
|
|||||
Commercial lending
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
$
|
125,337
|
|
|
$
|
116,834
|
|
|
$
|
110,527
|
|
|
$
|
101,364
|
|
|
$
|
98,608
|
|
|
Commercial real estate
|
|
28,110
|
|
|
28,140
|
|
|
28,978
|
|
|
29,010
|
|
|
27,468
|
|
|
|||||
Equipment lease financing
|
|
7,155
|
|
|
7,308
|
|
|
7,934
|
|
|
7,581
|
|
|
7,468
|
|
|
|||||
Total commercial lending
|
|
160,602
|
|
|
152,282
|
|
|
147,439
|
|
|
137,955
|
|
|
133,544
|
|
|
|||||
Consumer lending
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity
|
|
25,085
|
|
|
26,123
|
|
|
28,364
|
|
|
29,949
|
|
|
32,133
|
|
|
|||||
Residential real estate
|
|
21,821
|
|
|
18,657
|
|
|
17,212
|
|
|
15,598
|
|
|
14,411
|
|
|
|||||
Automobile
|
|
16,754
|
|
|
14,419
|
|
|
12,880
|
|
|
12,380
|
|
|
11,157
|
|
|
|||||
Credit card
|
|
7,308
|
|
|
6,357
|
|
|
5,699
|
|
|
5,282
|
|
|
4,862
|
|
|
|||||
Education
|
|
3,336
|
|
|
3,822
|
|
|
4,454
|
|
|
5,159
|
|
|
5,881
|
|
|
|||||
Other consumer
|
|
4,937
|
|
|
4,585
|
|
|
4,410
|
|
|
4,510
|
|
|
4,708
|
|
|
|||||
Total consumer lending
|
|
79,241
|
|
|
73,963
|
|
|
73,019
|
|
|
72,878
|
|
|
73,152
|
|
|
|||||
Total loans
|
|
$
|
239,843
|
|
|
$
|
226,245
|
|
|
$
|
220,458
|
|
|
$
|
210,833
|
|
|
$
|
206,696
|
|
|
December 31, 2019
In millions |
1 Year or Less
|
|
1 Through 5 Years
|
|
After 5 Years
|
|
Gross Loans
|
|
||||
Commercial
|
$
|
39,531
|
|
$
|
79,258
|
|
$
|
6,548
|
|
$
|
125,337
|
|
Commercial real estate
|
6,251
|
|
15,064
|
|
6,795
|
|
28,110
|
|
||||
Total
|
$
|
45,782
|
|
$
|
94,322
|
|
$
|
13,343
|
|
$
|
153,447
|
|
Loans with:
|
|
|
|
|
||||||||
Predetermined rate
|
$
|
6,328
|
|
$
|
14,409
|
|
$
|
6,317
|
|
$
|
27,054
|
|
Floating or adjustable rate
|
39,454
|
|
79,913
|
|
7,026
|
|
126,393
|
|
||||
Total
|
$
|
45,782
|
|
$
|
94,322
|
|
$
|
13,343
|
|
$
|
153,447
|
|
December 31 – dollars in millions
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
|
|||||
Nonperforming loans
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
425
|
|
|
$
|
346
|
|
|
$
|
429
|
|
|
$
|
496
|
|
|
$
|
351
|
|
|
Commercial real estate
|
44
|
|
|
75
|
|
|
123
|
|
|
143
|
|
|
187
|
|
|
|||||
Equipment lease financing
|
32
|
|
|
11
|
|
|
2
|
|
|
16
|
|
|
7
|
|
|
|||||
Total commercial lending
|
501
|
|
|
432
|
|
|
554
|
|
|
655
|
|
|
545
|
|
|
|||||
Consumer lending (a)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity
|
669
|
|
|
797
|
|
|
818
|
|
|
914
|
|
|
977
|
|
|
|||||
Residential real estate
|
315
|
|
|
350
|
|
|
400
|
|
|
501
|
|
|
549
|
|
|
|||||
Automobile
|
135
|
|
|
100
|
|
|
76
|
|
|
55
|
|
|
35
|
|
|
|||||
Credit card
|
11
|
|
|
7
|
|
|
6
|
|
|
4
|
|
|
3
|
|
|
|||||
Other consumer
|
4
|
|
|
8
|
|
|
11
|
|
|
15
|
|
|
17
|
|
|
|||||
Total consumer lending
|
1,134
|
|
|
1,262
|
|
|
1,311
|
|
|
1,489
|
|
|
1,581
|
|
|
|||||
Total nonperforming loans (b)
|
1,635
|
|
|
1,694
|
|
|
1,865
|
|
|
2,144
|
|
|
2,126
|
|
|
|||||
OREO and foreclosed assets
|
117
|
|
|
114
|
|
|
170
|
|
|
230
|
|
|
299
|
|
|
|||||
Total nonperforming assets
|
$
|
1,752
|
|
|
$
|
1,808
|
|
|
$
|
2,035
|
|
|
$
|
2,374
|
|
|
$
|
2,425
|
|
|
Nonperforming loans to total loans
|
.68
|
%
|
|
.75
|
%
|
|
.85
|
%
|
|
1.02
|
%
|
|
1.03
|
%
|
|
|||||
Nonperforming assets to total loans, OREO and foreclosed assets
|
.73
|
%
|
|
.80
|
%
|
|
.92
|
%
|
|
1.12
|
%
|
|
1.17
|
%
|
|
|||||
Nonperforming assets to total assets
|
.43
|
%
|
|
.47
|
%
|
|
.53
|
%
|
|
.65
|
%
|
|
.68
|
%
|
|
|||||
Interest on nonperforming loans (c)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Computed on original terms
|
$
|
124
|
|
|
$
|
123
|
|
|
$
|
114
|
|
|
$
|
111
|
|
|
$
|
115
|
|
|
Recognized prior to nonperforming status
|
$
|
17
|
|
|
$
|
17
|
|
|
$
|
19
|
|
|
$
|
21
|
|
|
$
|
22
|
|
|
Troubled Debt Restructurings
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonperforming
|
$
|
843
|
|
|
$
|
863
|
|
|
$
|
964
|
|
|
$
|
1,112
|
|
|
$
|
1,119
|
|
|
Performing
|
$
|
821
|
|
|
$
|
988
|
|
|
$
|
1,097
|
|
|
$
|
1,109
|
|
|
$
|
1,232
|
|
|
Past due loans
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Accruing loans past due 90 days or more (d)
|
$
|
585
|
|
|
$
|
629
|
|
|
$
|
737
|
|
|
$
|
782
|
|
|
$
|
881
|
|
|
As a percentage of total loans
|
.24
|
%
|
|
.28
|
%
|
|
.33
|
%
|
|
.37
|
%
|
|
.43
|
%
|
|
|||||
Past due loans held for sale
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Accruing loans held for sale past due 90 days or more
|
$
|
3
|
|
|
$
|
4
|
|
|
$
|
3
|
|
|
$
|
4
|
|
|
$
|
4
|
|
|
As a percentage of total loans held for sale
|
.28
|
%
|
|
.40
|
%
|
|
.11
|
%
|
|
.16
|
%
|
|
.29
|
%
|
|
(a)
|
Excludes most unsecured consumer loans and lines of credit, which are charged off after 120 to 180 days past due and are not placed on nonperforming status.
|
(b)
|
Nonperforming loans exclude certain government insured or guaranteed loans, loans held for sale, loans accounted for under the fair value option and purchased impaired loans.
|
(c)
|
Amounts are for the year ended.
|
(d)
|
Past due loan amounts include government insured or guaranteed consumer loans of $.6 billion $.5 billion, $.6 billion, $.7 billion and $.8 billion at December 31, 2019, 2018, 2017, 2016 and 2015, respectively.
|
Year ended December 31 – dollars in millions
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
|||||
Allowance for loan and lease losses
|
|
|
|
|
|
|
|
|
|
||||||||||
January 1
|
$
|
2,629
|
|
|
$
|
2,611
|
|
|
$
|
2,589
|
|
|
$
|
2,727
|
|
|
$
|
3,331
|
|
Gross charge-offs
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
(183
|
)
|
|
(108
|
)
|
|
(186
|
)
|
|
(332
|
)
|
|
(206
|
)
|
|||||
Commercial real estate
|
(18
|
)
|
|
(8
|
)
|
|
(24
|
)
|
|
(26
|
)
|
|
(44
|
)
|
|||||
Equipment lease financing
|
(15
|
)
|
|
(8
|
)
|
|
(11
|
)
|
|
(5
|
)
|
|
(5
|
)
|
|||||
Home equity
|
(68
|
)
|
|
(110
|
)
|
|
(123
|
)
|
|
(143
|
)
|
|
(181
|
)
|
|||||
Residential real estate
|
(9
|
)
|
|
(6
|
)
|
|
(9
|
)
|
|
(14
|
)
|
|
(24
|
)
|
|||||
Credit card
|
(263
|
)
|
|
(217
|
)
|
|
(182
|
)
|
|
(161
|
)
|
|
(160
|
)
|
|||||
Other consumer (a)
|
(418
|
)
|
|
(307
|
)
|
|
(251
|
)
|
|
(205
|
)
|
|
(185
|
)
|
|||||
Total gross charge-offs
|
(974
|
)
|
|
(764
|
)
|
|
(786
|
)
|
|
(886
|
)
|
|
(805
|
)
|
|||||
Recoveries
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
59
|
|
|
67
|
|
|
81
|
|
|
117
|
|
|
170
|
|
|||||
Commercial real estate
|
11
|
|
|
24
|
|
|
28
|
|
|
51
|
|
|
66
|
|
|||||
Equipment lease financing
|
8
|
|
|
8
|
|
|
7
|
|
|
10
|
|
|
4
|
|
|||||
Home equity
|
74
|
|
|
98
|
|
|
91
|
|
|
84
|
|
|
93
|
|
|||||
Residential real estate
|
14
|
|
|
21
|
|
|
18
|
|
|
9
|
|
|
13
|
|
|||||
Credit card
|
27
|
|
|
24
|
|
|
21
|
|
|
19
|
|
|
21
|
|
|||||
Other consumer (a)
|
139
|
|
|
102
|
|
|
83
|
|
|
53
|
|
|
52
|
|
|||||
Total recoveries
|
332
|
|
|
344
|
|
|
329
|
|
|
343
|
|
|
419
|
|
|||||
Net (charge-offs)
|
(642
|
)
|
|
(420
|
)
|
|
(457
|
)
|
|
(543
|
)
|
|
(386
|
)
|
|||||
Provision for credit losses
|
773
|
|
|
408
|
|
|
441
|
|
|
433
|
|
|
255
|
|
|||||
Net decrease / (increase) in allowance for unfunded loan commitments and
letters of credit
|
(33
|
)
|
|
12
|
|
|
4
|
|
|
(40
|
)
|
|
(2
|
)
|
|||||
Other (b)
|
15
|
|
|
18
|
|
|
34
|
|
|
12
|
|
|
(471
|
)
|
|||||
December 31
|
$
|
2,742
|
|
|
$
|
2,629
|
|
|
$
|
2,611
|
|
|
$
|
2,589
|
|
|
$
|
2,727
|
|
ALLL as a percentage of December 31:
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans (b)
|
1.14
|
%
|
|
1.16
|
%
|
|
1.18
|
%
|
|
1.23
|
%
|
|
1.32
|
%
|
|||||
Nonperforming loans
|
168
|
%
|
|
155
|
%
|
|
140
|
%
|
|
121
|
%
|
|
128
|
%
|
|||||
As a percentage of average loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net charge-offs
|
.27
|
%
|
|
.19
|
%
|
|
.21
|
%
|
|
.26
|
%
|
|
.19
|
%
|
|||||
Provision for credit losses
|
.33
|
%
|
|
.18
|
%
|
|
.20
|
%
|
|
.21
|
%
|
|
.12
|
%
|
|||||
ALLL (b)
|
1.17
|
%
|
|
1.18
|
%
|
|
1.20
|
%
|
|
1.24
|
%
|
|
1.33
|
%
|
|||||
ALLL as a multiple of net charge-offs
|
4.27x
|
|
|
6.26x
|
|
|
5.71x
|
|
|
4.77x
|
|
|
7.06x
|
|
(a)
|
Includes automobile, education and other consumer.
|
(b)
|
Includes $468 million in write-offs of purchased impaired loans in 2015 due to the change in derecognition policy effective December 31, 2015 for certain consumer purchased impaired loans. See Note 1 Accounting Policies in our 2015 Form 10-K for additional information.
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
||||||||||||||||||||
December 31 dollars in millions
|
Allowance
|
|
Loans to
Total Loans
|
|
|
Allowance
|
|
Loans to
Total Loans
|
|
|
Allowance
|
|
Loans to
Total Loans
|
|
|
Allowance
|
|
Loans to
Total Loans
|
|
|
Allowance
|
|
Loans to
Total Loans
|
|
|
|||||
Commercial
|
$
|
1,489
|
|
52.3
|
%
|
|
$
|
1,350
|
|
51.6
|
%
|
|
$
|
1,302
|
|
50.1
|
%
|
|
$
|
1,179
|
|
48.1
|
%
|
|
$
|
1,286
|
|
47.7
|
%
|
|
Commercial real estate
|
278
|
|
11.7
|
|
|
271
|
|
12.4
|
|
|
244
|
|
13.1
|
|
|
320
|
|
13.8
|
|
|
281
|
|
13.3
|
|
|
|||||
Equipment lease financing
|
45
|
|
3.0
|
|
|
42
|
|
3.2
|
|
|
36
|
|
3.6
|
|
|
35
|
|
3.6
|
|
|
38
|
|
3.6
|
|
|
|||||
Home equity
|
87
|
|
10.5
|
|
|
204
|
|
11.6
|
|
|
284
|
|
12.9
|
|
|
357
|
|
14.2
|
|
|
484
|
|
15.5
|
|
|
|||||
Residential real estate
|
258
|
|
9.1
|
|
|
297
|
|
8.3
|
|
|
300
|
|
7.8
|
|
|
332
|
|
7.4
|
|
|
307
|
|
7.0
|
|
|
|||||
Credit card
|
288
|
|
3.0
|
|
|
239
|
|
2.8
|
|
|
220
|
|
2.6
|
|
|
181
|
|
2.5
|
|
|
167
|
|
2.4
|
|
|
|||||
Other consumer (a)
|
297
|
|
10.4
|
|
|
226
|
|
10.1
|
|
|
225
|
|
9.9
|
|
|
185
|
|
10.4
|
|
|
164
|
|
10.5
|
|
|
|||||
Total
|
$
|
2,742
|
|
100.0
|
%
|
|
$
|
2,629
|
|
100.0
|
%
|
|
$
|
2,611
|
|
100.0
|
%
|
|
$
|
2,589
|
|
100.0
|
%
|
|
$
|
2,727
|
|
100.0
|
%
|
|
December 31, 2019 - in billions
|
Domestic Time Deposits
|
|
|
Three months or less
|
$
|
1.9
|
|
Over three through six months
|
1.7
|
|
|
Over six through twelve months
|
2.4
|
|
|
Over twelve months
|
1.1
|
|
|
Total
|
$
|
7.1
|
|
|
Transitional Basel III
|
Fully Phased-In Basel III (Non-GAAP)
(estimated) (a)
|
||||||||||||||||
Dollars in millions
|
December 31
2017
|
|
December 31
2016 |
|
December 31
2015 |
|
December 31
2017
|
|
December 31
2016 |
|
December 31
2015 |
|
||||||
Common stock, related surplus and retained earnings, net of treasury stock
|
$
|
43,676
|
|
$
|
41,987
|
|
$
|
41,128
|
|
$
|
43,676
|
|
$
|
41,987
|
|
$
|
41,128
|
|
Less regulatory capital adjustments:
|
|
|
|
|
|
|
||||||||||||
Goodwill and disallowed intangibles, net of deferred tax
liabilities
|
(9,243
|
)
|
(8,974
|
)
|
(8,972
|
)
|
(9,307
|
)
|
(9,073
|
)
|
(9,172
|
)
|
||||||
Basel III total threshold deductions
|
(1,983
|
)
|
(762
|
)
|
(470
|
)
|
(2,928
|
)
|
(1,469
|
)
|
(1,294
|
)
|
||||||
Accumulated other comprehensive income (b)
|
(166
|
)
|
(238
|
)
|
(81
|
)
|
(207
|
)
|
(396
|
)
|
(201
|
)
|
||||||
All other adjustments
|
(138
|
)
|
(214
|
)
|
(112
|
)
|
(141
|
)
|
(221
|
)
|
(182
|
)
|
||||||
Basel III Common equity Tier 1 capital
|
$
|
32,146
|
|
$
|
31,799
|
|
$
|
31,493
|
|
$
|
31,093
|
|
$
|
30,828
|
|
$
|
30,279
|
|
Basel III standardized approach risk-weighted assets (c)
|
$
|
309,460
|
|
$
|
300,533
|
|
$
|
295,905
|
|
$
|
316,120
|
|
$
|
308,517
|
|
$
|
303,707
|
|
Basel III advanced approaches risk-weighted assets (d)
|
N/A
|
|
N/A
|
|
N/A
|
|
$
|
285,226
|
|
$
|
277,896
|
|
$
|
264,931
|
|
|||
Basel III Common equity Tier 1 capital ratio
|
10.4
|
%
|
10.6
|
%
|
10.6
|
%
|
9.8
|
%
|
10.0
|
%
|
10.0
|
%
|
||||||
Risk weight and associated rules utilized
|
Standardized (with 2017 transition adjustments)
|
Standardized
(with 2016 transition adjustments) |
Standardized
(with 2015 transition adjustments) |
Standardized
|
(a)
|
Pro forma fully phased-in Basel III ratios are calculated without the benefit of phase-ins. We believe that the pro forma fully phased-in Basel III capital ratios are a useful tool to assess our capital position (without the benefit of phase-ins), for the periods presented.
|
(b)
|
Represented net adjustments related to accumulated other comprehensive income for securities, and those transferred from, available for sale, as well as pension and other postretirement plans.
|
(c)
|
Basel III standardized approach risk-weighted assets were based on the Basel III standardized approach rules and include credit and market risk-weighted assets.
|
(d)
|
Basel III advanced approaches risk-weighted assets were based on the Basel III advanced approaches rules, and include credit, market and operational risk-weighted assets.
|
|
|
(a)
|
|
|
(b)
|
|
|
(c)
|
|
|
|
|
|
Number of securities to be issued upon exercise of outstanding options, warrants and rights
|
|
|
Weighted-average exercise price of outstanding options, warrants and rights (1)
|
|
|
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))
|
|
|
|
Plan Category
|
|
|
|
|
|
|
|
||||
Equity compensation plans approved by security holders
|
|
4,653,282
|
|
(2)
|
$
|
61.12
|
|
|
29,115,558
|
|
(3)
|
Equity compensation plans not approved by security holders
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
Total
|
|
4,653,282
|
|
|
$
|
61.12
|
|
|
29,115,558
|
|
|
Exhibit
No.
|
|
Description
|
|
Method of Filing +
|
|
|
|
||
3.1.1
|
|
|
Incorporated herein by reference to Exhibit 3.1 of the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2008 (2008 Form 10-K)
|
|
|
|
|
||
3.1.2
|
|
|
Incorporated herein by reference to Exhibit 3.1 of the Corporation’s Current Report on Form 8-K filed July 27, 2011
|
|
|
|
|
||
3.1.3
|
|
|
Incorporated herein by reference to Exhibit 3.1 of the Corporation’s Current Report on Form 8-K filed April 24, 2012
|
|
|
|
|
||
3.1.4
|
|
|
Incorporated herein by reference to Exhibit 3.1 of the Corporation’s Current Report on Form 8-K filed September 21, 2012
|
|
|
|
|
||
3.1.5
|
|
|
Incorporated herein by reference to Exhibit 3.1 of the Corporation’s Current Report on Form 8-K filed May 7, 2013
|
|
|
|
|
||
3.1.6
|
|
|
Incorporated herein by reference to Exhibit 3.1.6 of the Corporation’s Current Report on Form 8-K filed November 20, 2015
|
|
|
|
|
||
3.1.7
|
|
|
Incorporated herein by reference to Exhibit 3.1 of the Corporation’s Current Report on Form 8-K filed November 1, 2016
|
|
|
|
|
||
3.2
|
|
|
Incorporated herein by reference to Exhibit 3.2 of the Corporation’s Current Report on Form 8-K filed August 11, 2016
|
|
|
|
|
||
4.1
|
|
There are no instruments with respect to long-term debt of the Corporation and its subsidiaries that involve a total amount of securities authorized thereunder that exceed 10 percent of the total assets of the Corporation and its subsidiaries on a consolidated basis. The Corporation agrees to provide the SEC with a copy of instruments defining the rights of holders of long-term debt of the Corporation and its subsidiaries on request.
|
|
|
|
|
|
||
4.2
|
|
|
Incorporated herein by reference to Exhibit 4.2 of the Corporation’s Current Report on Form 8-K filed July 27, 2011
|
|
|
|
|
Exhibit
No.
|
|
Description
|
|
Method of Filing +
|
|
|
|
||
4.3
|
|
|
Incorporated herein by reference to Exhibit 4.2 of the Corporation’s Current Report on Form 8-K filed April 24, 2012
|
|
|
|
|
||
4.4
|
|
|
Incorporated herein by reference to Exhibit 4.2 of the Corporation’s Current Report on Form 8-K filed September 21, 2012
|
|
|
|
|
||
4.5
|
|
|
Incorporated herein by reference to Exhibit 4.2 of the Corporation’s Current Report on Form 8-K filed May 7, 2013
|
|
|
|
|
||
4.6
|
|
|
Incorporated herein by reference to Exhibit 4.2 of the Corporation’s Current Report on Form 8-K filed November 1, 2016
|
|
|
|
|
||
4.7
|
|
|
Incorporated herein by reference to Exhibit 4.11 of the Corporation’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2004
|
|
|
|
|
||
4.8.1
|
|
|
Incorporated herein by reference to Exhibit 4.25 of the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2013 (2013 Form 10-K)
|
|
|
|
|
||
4.8.2
|
|
|
Incorporated herein by reference to Exhibit 4.21.2 of the Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2015 (2nd Quarter 2015 Form 10-Q)
|
|
|
|
|
||
4.8.3
|
|
|
Incorporated herein by reference to Exhibit 4.20.3 of the Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016 (2nd Quarter 2016 Form 10-Q)
|
|
|
|
|
||
4.9
|
|
|
Incorporated herein by reference to Exhibit 4.25 of the Corporation’s 2013 Form 10-K
|
|
|
|
|
||
4.10
|
|
|
Incorporated herein by reference to Exhibit 4.21.2 of the Corporation’s 2nd Quarter 2015 Form 10-Q
|
|
|
|
|
|
|
44.11
|
|
|
Filed herewith
|
|
|
|
|
||
10.1.1
|
|
|
Incorporated herein by reference to Exhibit 10.2 of the Corporation’s 2008 Form 10-K*
|
|
|
|
|
||
10.1.2
|
|
|
Incorporated herein by reference to Exhibit 10.3 of the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2009 (2009 Form 10-K)*
|
|
|
|
|
||
10.1.3
|
|
|
Incorporated herein by reference to Exhibit 10.1.3 of the Corporation’s 2013 Form 10-K*
|
|
|
|
|
Exhibit
No.
|
|
Description
|
|
Method of Filing +
|
|
|
|
||
10.2.1
|
|
|
Incorporated herein by reference to Exhibit 10.4 of the Corporation’s 2008 Form 10-K*
|
|
|
|
|
||
10.2.2
|
|
|
Incorporated herein by reference to Exhibit 10.6 of the Corporation’s 2009 Form 10-K*
|
|
|
|
|
||
10.2.3
|
|
|
Incorporated herein by reference to Exhibit 10.8 of the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2011 (2011 Form 10-K)*
|
|
|
|
|
||
10.2.4
|
|
|
Incorporated herein by reference to Exhibit 10.2.4 of the Corporation’s 2013 Form 10-K*
|
|
|
|
|
||
10.3.1
|
|
|
Incorporated herein by reference to Exhibit 10.6 of the Corporation’s 2008 Form 10-K*
|
|
|
|
|
||
10.3.2
|
|
|
Incorporated herein by reference to Exhibit 10.9 of the Corporation’s 2009 Form 10-K*
|
|
|
|
|
||
10.4.1
|
|
|
Incorporated herein by reference to Exhibit 10.17 of the Corporation’s 2011 Form 10-K*
|
|
|
|
|
||
10.4.2
|
|
|
Incorporated herein by reference to Exhibit 10.4.2 of the Corporation’s 2013 Form 10-K*
|
|
|
|
|
||
10.5.1
|
|
|
Incorporated herein by reference to Exhibit 10.62 of the Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2009*
|
|
|
|
|
||
10.5.2
|
|
|
Incorporated herein by reference to Exhibit 10.17 of the Corporation’s 2009 Form 10-K*
|
|
|
|
|
||
10.5.3
|
|
|
Incorporated herein by reference to Exhibit 10.20 of the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2010 (2010 Form 10-K)*
|
|
|
|
|
||
10.5.4
|
|
|
Incorporated herein by reference to Exhibit 10.23 of the Corporation’s 2011 Form 10-K*
|
|
|
|
|
||
10.5.5
|
|
|
Incorporated herein by reference to Exhibit 10.24 of the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2012 (2012 Form 10-K)*
|
|
|
|
|
||
10.5.6
|
|
|
Incorporated herein by reference to Exhibit 10.5.6 of the Corporation’s 2013 Form 10-K*
|
|
|
|
|
||
10.6.1
|
|
|
Incorporated herein by reference to Exhibit 10.7 of the Corporation’s Form 10-K for the year ended December 31, 2016 (2016 Form 10-K)*
|
|
|
|
|
||
10.6.2
|
|
|
Incorporated herein by reference to Exhibit 10.6.2 of the Corporation’s Form 10-K for the year ended December 31, 2018*
|
|
|
|
|
|
|
10.6.3
|
|
|
|
Filed herewith*
|
|
|
|
||
10.7
|
|
|
Incorporated herein by reference to Exhibit 99.1 of the Corporation’s Form S-8 (File No. 333-210995) filed April 29, 2016*
|
|
|
|
|
Exhibit
No.
|
|
Description
|
|
Method of Filing +
|
|
|
|
||
10.8.1
|
|
|
Incorporated herein by reference to Exhibit 10.70 of the Corporation’s Quarterly Report on Form 1O-Q for the quarter ended March 31, 2011 (1st Quarter 2011 Form 10-Q)*
|
|
|
|
|
||
10.8.2
|
|
|
Incorporated herein by reference to Exhibit 10.28 of the Corporation’s 2011 Form 10-K*
|
|
|
|
|
||
10.9
|
|
|
Incorporated herein by reference to Exhibit 10.52 of the Corporation’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2014
|
|
|
|
|
||
10.10
|
|
|
Incorporated herein by reference to Exhibit 10.16 of the Corporation’s 2016 Form 10-K*
|
|
|
|
|
||
10.11
|
|
|
Incorporated herein by reference to Exhibit 10.15 of the Corporation’s Form 10-K for the year ended December 31, 2017*
|
|
|
|
|
||
10.12
|
|
|
Incorporated herein by reference to Exhibit 10.34 of the Corporation’s 3rd Quarter 2005 Form 10-Q*
|
|
|
|
|
||
10.13
|
|
|
Incorporated herein by reference to Exhibit 10.37 of the Corporation’s 2011 Form 10-K*
|
|
|
|
|
||
10.14
|
|
|
Incorporated herein by reference to Exhibit 10.53 of the Corporation’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2018
|
|
|
|
|
||
10.15
|
|
|
Incorporated herein by reference to Exhibit 10.48 of the Corporation’s 2009 Form 10-K*
|
|
|
|
|
||
10.16
|
|
|
|
Incorporated herein by reference to Exhibit 10.71 of the Corporation’s 1st Quarter 2011 Form 10-Q*
|
|
|
|
||
10.17
|
|
|
|
Incorporated herein by reference to Exhibit 10.77 of the Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012 (1st Quarter 2012 Form 10-Q)*
|
|
|
|
||
10.18
|
|
|
Incorporated herein by reference to Exhibit 10.78 of the Corporation’s 1st Quarter 2012 Form 10-Q*
|
|
|
|
|
||
10.19
|
|
|
Incorporated herein by reference to Exhibit 10.64 of the Corporation’s 2012 Form 10-K*
|
|
|
|
|
||
10.20
|
|
|
|
Incorporated herein by reference to Exhibit 10.82 of the Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2013*
|
|
|
|
||
10.21
|
|
|
|
Incorporated herein by reference to Exhibit 10.52 of the Corporation’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2016 (3rd Quarter 2016 Form 10-Q)*
|
|
|
|
||
10.22
|
|
|
Incorporated herein by reference to Exhibit 10.54 of the Corporation’s 3rd Quarter 2016 Form 10-Q*
|
|
|
|
|
||
10.23
|
|
|
Incorporated herein by reference to Exhibit 10.56 of the Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017 (2nd Quarter 2017 Form 10-Q)*
|
|
|
|
|
||
10.24
|
|
|
Incorporated herein by reference to Exhibit 10.57 of the Corporation’s 2nd Quarter 2017 Form 10-Q*
|
|
|
|
|
||
10.25
|
|
|
|
Incorporated herein by reference to Exhibit 10.58 of the Corporation’s 2nd Quarter 2017 Form 10-Q*
|
Exhibit
No.
|
|
Description
|
|
Method of Filing +
|
|
|
|
||
|
|
|
||
10.26
|
|
|
Incorporated herein by reference to Exhibit 10.59 of the Corporation’s 2nd Quarter 2017 Form 10-Q*
|
|
|
|
|
||
10.27
|
|
|
|
Incorporated herein by reference to Exhibit 10.50 of the Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2018 (2nd Quarter 2018 Form 10-Q)*
|
|
|
|
||
10.28
|
|
|
|
Incorporated herein by reference to Exhibit 10.51 of the Corporation’s 2nd Quarter 2018 Form 10-Q*
|
|
|
|
||
10.29
|
|
|
|
Incorporated herein by reference to Exhibit 10.52 of the Corporation’s 2nd Quarter 2018 Form 10-Q*
|
|
|
|
||
10.30
|
|
|
|
Incorporated herein by reference to Exhibit 10.45 of the Corporation’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019 (3rd Quarter 2019 Form 10-Q)*
|
|
|
|
|
|
10.31
|
|
|
|
Incorporated herein by reference to Exhibit 10.46 of the Corporation’s 3rd Quarter 2019 Form 10-Q*
|
|
|
|
|
|
10.32
|
|
|
|
Incorporated herein by reference to Exhibit 10.47 of the Corporation’s 3rd Quarter 2019 Form 10-Q*
|
|
|
|
|
|
10.33
|
|
|
|
Incorporated by reference to Exhibit 10.49 of the Corporation’s Current Report on Form 8-K filed April 4, 2014*
|
|
|
|
|
|
10.34
|
|
|
Incorporated herein by reference to Exhibit 10.51 of the Corporation’s Current Report on Form 8-K filed August 16, 2016*
|
|
|
|
|
||
10.35.1
|
|
|
Incorporated herein by reference to Exhibit 10.35 of National City Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2006*
|
|
|
|
|
||
10.35.2
|
|
|
Incorporated herein by reference to Exhibit 10.56 of the Corporation’s 2010 Form 10-K*
|
|
|
|
|
||
10.36.1
|
|
|
Incorporated herein by reference to Exhibit 10.2 of BlackRock, Inc.’s Current Report on Form 8-K filed February 27, 2009
|
|
|
|
|
||
10.36.2
|
|
|
Incorporated herein by reference to Exhibit 10.2 of BlackRock, Inc.’s Current Report on Form 8-K filed June 17, 2009
|
|
|
|
|
||
10.37
|
|
|
Incorporated herein by reference to Exhibit 10.3 of BlackRock, Inc.’s Current Report on Form 8-K filed May 23, 2012
|
|
|
|
|
||
10.38.1
|
|
|
Incorporated by reference to Exhibit 10.47 of the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2014
|
|
|
|
|
||
10.38.2
|
|
|
Incorporated herein by reference to Exhibit 10.47.2 of the Corporation’s 2nd Quarter 2015 Form 10-Q
|
|
|
|
|
Exhibit
No.
|
|
Description
|
|
Method of Filing +
|
|
|
|
||
10.38.3
|
|
|
Incorporated herein by reference to Exhibit 10.48.3 of the Corporation’s 2nd Quarter 2016 Form 10-Q
|
|
|
|
|
||
21
|
|
|
Filed herewith
|
|
|
|
|
||
23.1
|
|
|
Filed herewith
|
|
|
|
|
||
23.2
|
|
|
Filed herewith
|
|
|
|
|
||
24
|
|
|
Filed herewith
|
|
|
|
|
||
31.1
|
|
|
Filed herewith
|
|
|
|
|
||
31.2
|
|
|
Filed herewith
|
|
|
|
|
||
32.1
|
|
|
Furnished herewith
|
|
|
|
|
||
32.2
|
|
|
Furnished herewith
|
|
|
|
|
||
99.1
|
|
|
|
Filed herewith
|
|
|
|
|
|
101.INS
|
|
Inline XBRL Instance Document
|
|
Filed herewith
|
|
|
|
|
|
101.SCH
|
|
Inline XBRL Taxonomy Extension Schema Document
|
|
Filed herewith
|
|
|
|
|
|
101.CAL
|
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document
|
|
Filed herewith
|
|
|
|
|
|
101.LAB
|
|
Inline XBRL Taxonomy Extension Label Linkbase Document
|
|
Filed herewith
|
|
|
|
|
|
101.PRE
|
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document
|
|
Filed herewith
|
|
|
|
|
|
101.DEF
|
|
Inline XBRL Taxonomy Extension Definition Linkbase Document
|
|
Filed herewith
|
|
|
|
||
104
|
|
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
|
|
|
+
|
Incorporated document references to filings by the Corporation are to SEC File No. 001-09718, to filings by National City Corporation are to SEC File No. 001-10074, to filings by BlackRock through its second quarter 2006 Form 10-Q (referred to herein as Old BlackRock) are to BlackRock Holdco 2, Inc. SEC File No. 001-15305, and to filings by BlackRock, Inc. are to SEC File No. 001-33099.
|
*
|
Denotes management contract or compensatory plan.
|
By:
|
|
/s/ Robert Q. Reilly
|
|
|
Robert Q. Reilly
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
February 28, 2020
|
|
|
|
Signature
|
|
Capacities
|
|
|
|
|
|
|
/s/ William S. Demchak
|
|
Chairman, President, Chief Executive Officer and Director
|
William S. Demchak
|
|
(Principal Executive Officer)
|
|
|
|
/s/ Robert Q. Reilly
|
|
Executive Vice President and Chief Financial Officer
|
Robert Q. Reilly
|
|
(Principal Financial Officer)
|
|
|
|
/s/ Gregory H. Kozich
|
|
Senior Vice President and Controller
|
Gregory H. Kozich
|
|
(Principal Accounting Officer)
|
|
|
|
* Joseph Alvarado; Charles E. Bunch; Debra A. Cafaro; Marjorie Rodgers Cheshire; Andrew T. Feldstein; Richard J. Harshman; Daniel R. Hesse; Richard B. Kelson; Linda R. Medler, Martin Pfinsgraff; Toni Townes-Whitley; Michael J. Ward
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Directors
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*By:
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/s/ Alicia Powell
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Alicia Powell, Attorney-in-Fact,
pursuant to Powers of Attorney filed herewith
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•
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Our Amended and Restated Articles of Incorporation (the “Articles of Incorporation”), which you can find as Exhibit 3.1 to our Annual Report on Form 10-K for the year ended December 31, 2008, including the statements with respect to shares pursuant to which certain outstanding series of preferred stock were issued,
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•
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an amendment to our Articles of Incorporation, which you can find as Exhibit 3.1.6 to our Current Report on Form 8-K filed November 20, 2015,
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•
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the statement with respect to shares governing our Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series O, which you can find as Exhibit 3.1 to our Current Report on Form 8-K filed July 27, 2011,
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•
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the statement with respect to shares governing our Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series P, which you can find as Exhibit 3.1 to our Current Report on Form 8-K filed April 24, 2012,
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the statement with respect to shares governing our 5.375% Non-Cumulative Perpetual Preferred Stock, Series Q, which you can find as Exhibit 3.1 to our Current Report on Form 8-K filed September 21, 2012,
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•
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the statement with respect to shares governing our Non-Cumulative Perpetual Preferred Stock, Series R, which you can find as Exhibit 3.1 to our Current Report on Form 8-K filed May 7, 2013,
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the statement with respect to shares governing our Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series S, which you can find as Exhibit 3.1 to our Current Report on Form 8-K filed November 1, 2016, and
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the Pennsylvania Business Corporation Law (the “PBCL”).
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authorizing the Board to fix the size of the Board between five and 36 directors,
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authorizing directors to fill vacancies on the Board occurring between annual shareholder meetings, including vacancies resulting from an increase in the number of directors,
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authorizing only the Board, the Chairman of the Board or the Chief Executive Officer to call a special meeting of shareholders,
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providing advance notice requirements for director nominations and business to be properly brought before a shareholder meeting, and
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authorizing a majority of the Board to alter, amend, add to or repeal the By-Laws.
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shareholders are not entitled to call a special meeting (Section 2521),
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unless the Articles of Incorporation provide otherwise (which as of the date hereof they do not), action by shareholder consent must be unanimous (Section 2524),
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shareholders are not entitled to propose an amendment to the Articles of Incorporation (Section 2535),
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certain transactions with interested shareholders (such as mergers or sales of assets between PNC and a shareholder) where the interested shareholder is a party to the transaction or is treated differently from other shareholders require approval by a majority of the disinterested shareholders (Section 2538),
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a five-year moratorium exists on certain business combinations with a 20% or more shareholder (Sections 2551-2556), and
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shareholders have a right to “put” their shares to a 20% shareholder at a “fair value” for a reasonable period after the 20% stake is acquired (Sections 2541-2547).
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$1.80 Cumulative Convertible Preferred Stock, Series B, with a per share liquidation preference of $40.00 (“Series B Preferred Stock”) (38,542 authorized),
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Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series O, with a per share liquidation preference of $100,000 (“Series O Preferred Stock”) (10,000 authorized),
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•
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Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series P, with a per share liquidation preference of $100,000 (“Series P Preferred Stock”) (15,750 authorized),
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•
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5.375% Non-Cumulative Perpetual Preferred Stock, Series Q, with a per share liquidation preference of $100,000 (“Series Q Preferred Stock”) (5,175 authorized),
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•
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Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series R, with a per share liquidation preference of $100,000 (“Series R Preferred Stock”) (5,000 authorized), and
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Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series S, with a per share liquidation preference of $100,000 (“Series S Preferred Stock”) (5,250 authorized).
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•
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98,583 shares of $1.80 Cumulative Convertible Preferred Stock, Series A ,
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•
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1,433,935 shares of $1.60 Cumulative Convertible Preferred Stock, Series C,
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1,766,140 shares of $1.80 Cumulative Convertible Preferred Stock, Series D,
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338,100 shares of $2.60 Cumulative Nonvoting Preferred Stock, Series E,
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6,000,000 shares of Fixed/Adjustable Rate Noncumulative Preferred Stock, Series F,
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50,000 shares of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series K,
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1,500 shares of 9.875% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series L, and
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5,001 shares of Non-Cumulative Perpetual Preferred Stock, Series M.
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Preferred Series
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Annual
Dividend Rate |
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Cumulative
Dividend |
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Conversion Rate
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Voting Right
(Based on Conversion Rate) |
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Liquidation
Value per Share |
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Redeemable
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B
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$1.80
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Yes
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1 preferred: 8 common
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Yes
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$
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40
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No
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O
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(1)
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No
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None
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(1)
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$
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100,000
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(1)
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P
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(1)
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No
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None
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(1)
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$
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100,000
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(1)
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Q
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(1)
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No
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None
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(1)
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$
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100,000
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(1)
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R
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(1)
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No
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None
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(1)
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$
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100,000
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(1)
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S
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(1)
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No
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None
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(1)
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$
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100,000
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(1)
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(1)
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See discussion of particular terms for this series of preferred stock below.
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In the case of the Series O Preferred Stock, 6.75% per annum for each semi-annual dividend period from the issue date of the depositary shares to, but excluding, August 1, 2021, payable in arrears on February 1 and August 1 of each year, and three-month LIBOR plus a spread of 3.678% per annum, for each quarterly dividend period from August 1, 2021 through the redemption date of the Series O Preferred Stock, if any, payable in arrears on February 1, May 1, August 1 and November 1 of each year.
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In the case of the Series P Preferred Stock, 6.125% per annum for each quarterly dividend period from the issue date of the depositary shares to, but excluding, May 1, 2022, and three-month LIBOR plus a spread of 4.0675% per annum, for each quarterly dividend period from May 1, 2022 through the redemption date of the Series P Preferred Stock, if any, payable in arrears on February 1, May 1, August 1 and November 1 of each year.
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In the case of Series Q Preferred Stock, 5.375% per annum for each quarterly dividend period from the issue date of the depositary shares to the redemption date of the Series Q Preferred Stock, if any, payable in arrears on March 1, June 1, September 1 and December 1 of each year.
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In the case of the Series R Preferred Stock, 4.850% per annum for each semi-annual dividend period from the issue date of the depositary shares to, but excluding, June 1, 2023, payable in arrears on June 1 and December 1 of each year, and three-month LIBOR plus a spread of 3.04% per annum, for each quarterly dividend period from June 1, 2023 through the redemption date of the Series R Preferred Stock, if any, payable in arrears on March 1, June 1, September 1 and December 1 of each year.
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In the case of the Series S Preferred Stock, 5.000% per annum for each semi-annual dividend period from the issue date of the depositary shares to, but excluding, November 1, 2026, payable in arrears on May 1 and November 1 of each year, and three-month LIBOR plus a spread of 3.30% per annum, for each quarterly dividend period from November 1, 2026 through the redemption date of the Series S Preferred Stock, if any, payable in arrears on February 1, May 1, August 1 and November 1 of each year.
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authorize the Board to fix and determine the relative rights and preferences, as between series, of any preferred or special class,
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make any change in the preferences, limitations or special rights (other than preemptive rights or the right to vote cumulatively) of the shares of a class or series adverse to the class or series,
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authorize a new class or series of shares having a preference as to dividends or assets which is senior to the shares of a class or series,
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increase the number of authorized shares of any class or series having a preference as to dividends or assets which is senior in any respect to the shares of a class or series, or
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make the outstanding shares of a class or series redeemable by a method that is not pro rata, by lot or otherwise equitable.
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create or increase the authorized number of shares of any class of stock ranking senior to the preferred stock as to dividends or assets, or
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change the preferences, qualifications, privileges, limitations, restrictions or special or relative rights of the preferred stock in any material respect adverse to the holders of the preferred stock.
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authorize or increase the authorized amount of, or issue shares of, any class or series of stock ranking senior to such series of preferred stock with respect to dividends or the distribution of assets upon liquidation, dissolutions or winding up of PNC,
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issue any obligation or security convertible into or evidencing the right to purchase any class or series of stock ranking senior to such series of preferred stock with respect to payment of dividends or the distribution of assets upon liquidation, dissolution or winding up of PNC,
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amend the provisions of the Articles of Incorporation so as to adversely affect the powers, preferences, privileges or rights of such series of preferred stock, taken as a whole, or
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consolidate with or merge into any other corporation unless the shares of such series of preferred stock outstanding at the time of such consolidation or merger or sale are converted into or exchanged for preference securities having such rights, privileges and voting powers, taken as a whole, as are not materially less favorable to the holders thereof than the rights, preferences, privileges and voting powers of such series of preferred stock, taken as a whole.
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Depositary Shares, each representing a 1/100 interest in a share of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series O,
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Depositary Shares Each Representing a 1/4,000 interest in a Share of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series P,
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Depositary Shares Each Representing a 1/4,000 interest in a Share of 5.375% Non-Cumulative Perpetual Preferred Stock, Series Q,
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Depositary Shares, each representing a 1/100 interest in a share of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series R, and
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Depositary Shares, each representing a 1/100 interest in a share of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series S.
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SECTION 1 DEFINITIONS
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1
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SECTION 2 ELIGIBILITY FOR PARTICIPATION
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9
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SECTION 3 BENEFITS
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9
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Deferral Amount. 9
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Deferral Election Form 9
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Cancellation or Revocation of Deferral Elections 10
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Modification of Distribution Elections 10
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SECTION 4 DISTRIBUTION OF DEFERRAL AMOUNTS AND PARTICIPANT ACCOUNTS
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11
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Time of Distribution 11
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Form of Distribution 12
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Unforeseeable Emergency Withdrawal 13
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Death Benefit 13
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Form and Valuation of Distribution 14
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SECTION 5 INVESTMENT FUNDS
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14
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SECTION 6 DESIGNATION OF BENEFICIARIES
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14
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SECTION 7 TRUST FUND
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15
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SECTION 8 CLAIMS PROCEDURE
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15
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Initial Claim 15
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Review Procedure. 15
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Claims and Review Procedure Not Mandatory After a Change in Control 15
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Exhaustion of Claims Procedures 16
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Venue 16
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SECTION 9 ADMINISTRATION; DELEGATION
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17
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SECTION 10 AMENDMENT AND TERMINATION
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17
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SECTION 11 SUCCESSORS
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18
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SECTION 12 GOVERNING LAW
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18
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SECTION 13 MISCELLANEOUS
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18
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Liability of Board, Committee and Plan Manager 18
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No Contract of Employment 18
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Compensation Under Other Plans 18
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Withholding 19
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Spendthrift Clause 19
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Severability 19
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Construction 19
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Corporation and Affiliate Liability 19
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Entire Agreement 20
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Notices 20
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Compliance with Law 20
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Compliance with the Uniformed Services Employment and Reemployment Rights Act of 1994 20
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1.1
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“Account” means the bookkeeping account established for each Participant who is entitled to a benefit under the Plan. An Account is established only for purposes of determining the amount of benefits hereunder and not to segregate assets or to identify assets that may or must be used to satisfy benefits. An Account will be credited with Deferral Amounts set forth in Section 3 of the Plan, Special Initiative Payments that are deferred as set forth in Appendix A of the Plan, and Earnings under Section 5 of the Plan. The Participant’s Account may be administratively segregated into one or more subaccounts to reflect benefits that are payable at different times and in different forms. As used herein, the term “Account” may refer to a subaccount as the context so requires.
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1.2
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“Active Employee” means an Employee who is actively employed by an Employer. By way of example, and not limitation, an Employee is not actively employed by an Employer if the Employee is absent from work due to a leave of absence, short-term or long-term disability, or displacement. Active Employee does not include (i) leased employees (which, in accordance with Internal Revenue Code Section 414(n), means any person, other than an employee of the recipient, who, pursuant to an agreement between the recipient and any other person, has performed services for the recipient, or for the recipient and related persons determined in accordance with Internal Revenue Code Section 414(n)(6), on a substantially full-time basis for a period of at least one year, and such services are performed under the primary direction or control of the recipient); (ii) interns; (iii) temporary employees or employees who are reclassified from another classification to temporary employees; (iv) employees who are not paid through the Corporation’s primary payroll system; and (v) employees with no U.S. source income. The decision as to whether an Employee is an Active Employee shall be made by the Plan Manager in his or her sole discretion.
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1.3
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“Administrative Committee” means The PNC Financial Services Group, Inc. Administrative Committee or such other committee that is appointed to administer the ISP.
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1.4
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“Affiliate” means any business entity whose relationship with the Corporation is as described in Subsection (b), (c) or (m) of Internal Revenue Code Section 414.
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1.5
|
“Annualized Base Salary” means an Employee’s Base Salary on an annualized basis as reflected on the Employer’s payroll records. For purposes of determining an Employee’s Base Salary in connection with this Section 1.5, the term “Participant” in Section 1.6 shall mean “Employee.”
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1.6
|
“Base Salary” means the salary or other non-variable pay received by a Participant for personal services actually rendered in the course of employment with an Employer during a Plan Year to the extent that the amounts are includible in gross income or would have been includible in gross income but for an election under Internal Revenue Code Section 125, 132(f)(4), 402(e)(3) or 402(h) or any deferral election into a qualified or nonqualified plan, including, without limitation, the ISP. Base Salary does not include: (i) amounts that are not processed through the Corporation’s primary payroll system; (ii) Short-Term Incentive Pay or other cash or non-cash incentive compensation amounts or commissions; (iii) amounts received by the Participant from a third-party, including, without limitation, amounts received by the Participant pursuant to an insurance program, plan or policy; (iv) severance pay or any other amounts received by the Participant after the Participant’s Severance From Service but only to the extent that such amounts are not attributable to services rendered by the Participant prior to the Severance From Service; and (v) amounts paid as gross-up payments.
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1.7
|
“Beneficiary” or “Beneficiaries” means the individual or individuals designated by a Participant to receive the balance of the Participant’s Account upon the Participant’s death in accordance with Section 6 of the Plan.
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1.8
|
“Board” means the Board of Directors of the Corporation.
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1.9
|
“Change in Control” means a change of control of the Corporation of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any similar schedule or form) promulgated under the Exchange Act, whether or not the Corporation is then subject to such reporting requirement; provided, however, that, without limitation, a Change in Control will be deemed to have occurred if:
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(a)
|
any Person, excluding employee benefits plans of the Corporation and its subsidiaries, is or becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act or any successor provisions thereto), directly or indirectly, of securities of the Corporation representing 20% or more of the combined voting power of the Corporation’s then-outstanding securities; provided, however, that such an acquisition of beneficial ownership representing between 20% and 40%, inclusive, of such voting power will not be considered a Change in Control if the Board approves such acquisition either prior to or immediately after its occurrence;
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(b)
|
the Corporation consummates a merger, consolidation, share exchange, division or other reorganization or transaction of the Corporation (a “Fundamental Transaction”) with any other corporation, other than a Fundamental Transaction that results in the voting securities of the Corporation outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least 60% of the combined voting power immediately after such Fundamental Transaction of (i) the Corporation’s outstanding securities, (ii) the surviving entity’s outstanding securities, or (iii) in the case of a division, the outstanding securities of each entity resulting from the division;
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(c)
|
the shareholders of the Corporation approve a plan of complete liquidation or winding-up of the Corporation or an agreement for the sale or disposition (in one transaction or a series of transactions) of all or substantially all of the Corporation’s assets;
|
(d)
|
as a result of a proxy contest, individuals who, prior to the conclusion thereof, constituted the Board (including, for this purpose, any new director whose election or nomination for election by the Corporation’s shareholders in connection with such proxy contest was approved by a vote of at least two-thirds of the directors then still in office who were directors prior to such proxy contest) cease to constitute at least a majority of the Board (excluding any Board seat that is vacant or otherwise unoccupied);
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(e)
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during any period of 24 consecutive months, individuals who, at the beginning of such period, constituted the Board (including, for this purpose, any new director whose election or nomination for election by the Corporation’s shareholders was approved by a vote of at least two-thirds of the directors then still in office who were directors at the beginning of such period) cease, for any reason, to constitute at least a majority of the Board (excluding any Board seat that is vacant or otherwise unoccupied); or
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(f)
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the Board determines that a Change in Control has occurred.
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1.10
|
“Committee” means the Personnel and Compensation Committee of the Board.
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1.11
|
“Compensation Threshold” for a Plan Year means the amount of compensation designated by the Internal Revenue Service under Internal Revenue Code Section 416(i)(l)(A)(i) for the calendar year that includes the Eligibility Determination Date.
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1.12
|
“Corporate Executive Group” means the group designated as such by the Corporation (or any successor group thereto).
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1.13
|
“Corporation” means The PNC Financial Services Group, Inc. and any successors thereto.
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1.14
|
“DCP” means The PNC Financial Services Group, Inc. and Affiliates Deferred Compensation Plan, adopted as of November 21, 1996, as amended from time to time.
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1.15
|
“Deferral Amount” means the amount credited to the Participant’s Account in accordance with the Participant’s Deferral Election and, except for purposes of Sections 1.16, 1.20, 1.46, 3 and 4, the Participant’s Special Incentive Deferral Election (as defined in Appendix A). The term “Deferral Amount” will not include Earnings.
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1.16
|
“Deferral Election” means a Participant’s irrevocable election to defer a whole percentage of his or her Base Salary or Eligible Short-Term Incentive Pay earned during a Plan Year and otherwise payable to the Participant by timely delivery to the Plan Manager of a Deferral Election Form. Deferral Elections shall be calculated with respect to the gross cash Base Salary or Eligible Short-Term Incentive Pay payable to the Participant prior to any deductions or withholdings, but shall be reduced by the Committee or its delegate to the extent necessary so that Deferral Elections do not exceed 100% of the cash amounts payable to the Participant after deduction of all required income and employment taxes and any other deductions required by law. In the case of a Participant who has incurred a Severance From Service, the Participant’s Deferral Election and Deferral Election Form shall apply to his or her Base Salary or Eligible Short-Term Incentive Pay earned prior to the Severance From Service notwithstanding that the Participant had incurred a Severance From Service at the time the payment would otherwise be made absent the Deferral Election.
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1.17
|
“Deferral Election Form” means a document, in a form or forms approved by the Plan Manager, including electronic, whereby the Participant elects to defer, in whole percentages, up to 20% of the Participant’s Base Salary and/or up to 75% of any Short-Term Incentive Pay earned during a Plan Year and otherwise payable to the Participant and designates a Distribution Event and form of payment for the portion of the Participant’s Account attributable to such Deferral Amount, including Earnings.
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1.18
|
“Disability” means, except as may otherwise be required by Internal Revenue Code Section 409A, that a Participant either (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months; or (ii) by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, is receiving, and has received for at least three months, income-replacement benefits under any Corporation-sponsored disability benefit plan. A Participant who has been determined to be eligible for Social Security disability benefits shall be presumed to have a Disability as defined herein. The definition of Disability contained in the Plan shall have no impact or effect on any determination regarding disability made under any other employee benefit plan of the Employer.
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1.19
|
“Distribution Date” means the date for commencement of distributions of a Participant’s Account(s) determined in accordance with Section 4.1 of the Plan.
|
1.20
|
“Distribution Event” means the event selected by the Participant on his or her Deferral Election Form for the commencement of the distribution of the Participant’s Account attributable to a Deferral Amount (including Earnings). A Participant may select as a Distribution Event for a Deferral Account (i) Severance From Service or (ii) a Specified Date.
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1.21
|
“Earnings” means any deemed investment gains or losses credited or debited to a Participant’s Account with respect to such Participant’s Deferral Amount.
|
1.22
|
“Eligibility Determination Date” means the October 1st immediately preceding the Plan Year with respect to which an Employee who is eligible to participate in the Plan pursuant to the criteria set forth in Section 2 of the Plan may submit a Deferral Election.
|
1.23
|
“Eligible Short-Term Incentive Pay” means (i) 100% of a Participant’s first $25,000 of Short-Term Incentive Pay plus (ii) 50% of the Participant’s next $225,000 of Short-Term Incentive Pay; provided, however, that, for a Grandfathered Corporate Executive Group Participant, Eligible Short-Term Incentive Pay means such Participant’s annual Short-Term Incentive Pay not in excess of the greater of (i) $25,000 or (ii) 50% of such Participant’s Short-Term Incentive Pay.
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1.24
|
“Employee” means any person employed by an Employer.
|
1.25
|
“Employer” means the Corporation and any Affiliate that has one or more employees paid through PNC’s primary payroll system, except to the extent that any such Affiliate is designated by the Plan Manager as not an Employer for purposes of the Plan and listed on Schedule A hereto (an “Excluded Affiliate”). The Plan Manager may update Schedule A to reflect any designation, or removal of a designation, as an Excluded Affiliate pursuant to this Section 1.25 without amendment to the Plan.
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1.26
|
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.
|
1.27
|
“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.
|
1.28
|
“Grandfathered Corporate Executive Group Participant” means a Participant who (i) was a member of the Corporate Executive Group on December 31, 2009 as reflected on the Corporation’s payroll records and (ii) continues to be a member of the Corporate Executive Group.
|
1.29
|
“Installment Period” has the meaning assigned in Section 4.2(a).
|
1.30
|
“Internal Revenue Code” means the Internal Revenue Code of 1986, as amended. Any reference to a section of the Internal Revenue Code shall be deemed to include any regulation, ruling, or other guidance issued thereunder by the Department of the Treasury or the Internal Revenue Service.
|
1.31
|
“ISP” means The PNC Financial Services Group, Inc. Incentive Savings Plan, as amended from time to time.
|
1.32
|
“KEEP” means The PNC Financial Services Group, Inc. Key Executive Equity Program, as amended from time to time.
|
1.33
|
“Participant” means, except as provided in Section 1.5 or 1.53, any (i) Employee who meets the eligibility criteria set forth in Section 2 of the Plan and/or has an Account under the Plan and (ii) any former Employee who has an Account under the Plan. Notwithstanding the foregoing, an Employee who does not have an Account under the Plan shall cease to be a Participant if the Employee does not make a Deferral Election, or elects or is deemed to elect to defer no Base Salary and Eligible Short-Term Incentive Pay, for the Plan Year the Employee is otherwise entitled to make a Deferral Election.
|
1.34
|
“Pension Plan” means The PNC Financial Services Group, Inc. Pension Plan, as amended from time to time.
|
1.35
|
“Person” has the meaning given in Section 3(a)(9) of the Exchange Act and also includes any syndicate or group deemed to be a person under Section 13(d)(3) of the Exchange Act.
|
1.36
|
“Plan” means The PNC Financial Services Group, Inc. and Affiliates Deferred Compensation and Incentive Plan, which is the Plan set forth in this document, as amended from time to time.
|
1.37
|
“Plan Manager” means any individual designated by the Committee to manage the operation of the Plan as herein provided or to whom the Committee has duly delegated any of its duties and obligations hereunder.
|
1.38
|
“Plan Year” means the calendar year.
|
1.39
|
“Prior Plan” has the meaning assigned in Section 6.
|
1.40
|
“Retirement” means a Participant’s Severance From Service at any time and for any reason (other than death) on or after the Participant has attained age 55 and completed five years of Vesting Service.
|
1.41
|
“Semi-Annual Valuation Date” means the first business day of January or July, as the context so requires.
|
1.42
|
“Separation From Service” means separation from service within the meaning of Internal Revenue Code Section 409A. For purposes of this definition, a Participant shall be deemed to have a Separation From Service on the date on which the Participant and the Employer reasonably anticipate that no further services would be performed after such date or that the level of bona fide services the Participant would perform after such date would permanently decrease to no more than 20% of the average level of bona fide services performed over the immediately preceding 36-month period (or the full period of employment if less than 36 months). Notwithstanding the above, no Separation From Service shall be deemed to occur while the Participant is on military leave, sick leave or other bona fide leave of absence until the latest of: (i) six months after commencement of the leave, other than for a Disability; (ii) 29 months after commencement of the leave as the result of a Disability; or (iii) the date on which the Participant ceases to have a legally protected right to reemployment under an applicable statute or by contract.
|
1.43
|
“Severance From Service” means the Participant’s Separation From Service with the Corporation and all of its Affiliates.
|
1.44
|
“Short-Term Incentive Pay” means, with respect to a Plan Year, and only to the extent that such amounts are processed through the Corporation’s primary payroll system and designated by the Corporation as eligible for deferral hereunder, (i) any commissions earned by a Participant; (ii) any monthly, quarterly and annual incentive award or portion of an incentive award payable in cash and earned by the Participant during the Plan Year; (iii) any other cash bonus or incentive compensation payment that is payable in cash and earned by the Participant during the Plan Year; and (iv) any amounts identified in clauses (i), (ii) or (iii) that are paid after the Participant’s Severance From Service but only to the extent such amounts are earned prior to the Participant’s Severance From Service; provided, however, that Short-Term Incentive Pay shall not include any amounts that become subject to the Corporation’s general clawback policy or any other policy, program or practice concerning the recapture of an overpayment. A Participant’s Short-Term Incentive Pay is attributable to a Plan Year if it is earned during the Plan Year, notwithstanding that it may be paid during a later Plan Year. Short-Term Incentive Pay shall not include any amounts subject to mandatory deferral or gross-ups.
|
1.45
|
“SISP” means The PNC Financial Services Group, Inc. Supplemental Incentive Savings Plan, adopted as of January 1, 1989, as amended from time to time.
|
1.46
|
“Specified Date” means the Semi-Annual Valuation Date that is specified by a Participant for the commencement of the distribution of his or her Account attributable to a Deferral Amount (including Earnings); provided, however, that such date is at least one full calendar year after the last day of the Plan Year to which the Deferral Amount relates. A Participant shall not be permitted to have designated more than five Specified Dates at any one time for Deferral Amounts (including Earnings) under the Plan.
|
1.47
|
“Spouse” means the person to whom the Participant is legally married on the relevant date (as determined under the laws of the state in which the Participant is a resident at the time of marriage).
|
1.48
|
“Subsequent Deferral Election” has the meaning assigned in Section 3.4.
|
1.49
|
“Trust” means the grantor trust established by the Corporation to assist in funding its obligations under the Plan.
|
1.50
|
“Unforeseeable Emergency” means an unforeseeable emergency that is a severe financial hardship to a Participant resulting from: (i) an illness to or accident involving the Participant, the Spouse, the Participant’s beneficiary, or the Participant’s dependent (as defined in Internal Revenue Code Section 152, without regard to Internal Revenue Code Sections 152(b)(1), (b)(2), and (d)(1)(B)); (ii) loss of the Participant’s property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by insurance); or (iii) other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant. Withdrawals of amounts because of such unforeseeable emergency will only be permitted to the extent reasonably necessary to satisfy the unforeseeable emergency plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution, after taking into account the extent to which such unforeseeable emergency is or may be relieved:
|
(a)
|
by cessation of deferrals under the Plan;
|
(b)
|
through reimbursement or compensation by insurance or otherwise; or
|
(c)
|
by liquidation of the Participant’s assets, to the extent the liquidation of such assets would not itself cause financial hardship.
|
1.51
|
“Unforeseeable Emergency Withdrawal” has the meaning assigned in Section 4.3.
|
1.52
|
“Vesting Service” has the meaning assigned such term in the Pension Plan.
|
1.53
|
“Year-to-Date Short-Term Incentive Pay” means the Short-Term Incentive Pay paid or payable to an Employee between January 1 and the Eligibility Determination Date, plus, to the extent not already included, any Short-Term Incentive Pay that would have been received by the Employee during such period but for the Employee’s participation in a mandatory or elective deferral plan, including, without limitation, this Plan. For purposes of determining the Employee’s Short-Term Incentive Pay in connection with this Section 1.53, the term “Participant” in Section 1.44 shall mean “Employee.” An Employee’s Year-to-Date Short-Term Incentive Pay shall be determined by the Plan Manager in his or her sole discretion.
|
3.1
|
Deferral Amount.
|
3.2
|
Deferral Election Form.
|
3.3
|
Cancellation or Revocation of Deferral Elections.
|
3.4
|
Modification of Distribution Elections.
|
4.1
|
Time of Distribution.
|
(a)
|
Severance From Service.
|
(1)
|
If the Participant designates Severance From Service as the Distribution Event for a Deferral Amount, distribution of the Participant’s Account attributable to such Deferral Amount (including Earnings) shall commence within 30 days of the first Semi-Annual Valuation Date that is at least six months after the occurrence of the Participant’s Severance From Service.
|
(2)
|
In the event that a Participant’s Account is distributed following a Severance From Service in annual installments pursuant to Section 4.2(a) of the Plan, the first installment payment shall be made in accordance with subsection (1) above, and each subsequent annual installment payment shall be made within 30 days of the Semi-Annual Valuation Date that represents the anniversary of the Semi‑Annual Valuation Date in connection with which the Participant’s distributions commenced, until the Participant’s Account is fully distributed.
|
(b)
|
Specified Date.
|
4.2
|
Form of Distribution.
|
(a)
|
Severance From Service.
|
(b)
|
Specified Date.
|
4.3
|
Unforeseeable Emergency Withdrawal.
|
4.4
|
Death Benefit.
|
4.5
|
Form and Valuation of Distribution.
|
8.1
|
Initial Claim .
|
8.2
|
Review Procedure.
|
8.3
|
Claims and Review Procedure Not Mandatory After a Change in Control.
|
8.4
|
Exhaustion of Claims Procedures.
|
8.5
|
Venue.
|
13.1
|
Liability of Board, Committee and Plan Manager.
|
13.2
|
No Contract of Employment.
|
13.3
|
Compensation Under Other Plans.
|
13.4
|
Withholding.
|
13.5
|
Spendthrift Clause.
|
13.6
|
Severability.
|
13.7
|
Construction.
|
13.8
|
Corporation and Affiliate Liability.
|
13.9
|
Entire Agreement.
|
13.10
|
Notices.
|
13.11
|
Compliance with Law.
|
13.12
|
Compliance with the Uniformed Services Employment and Reemployment Rights Act of 1994.
|
(a)
|
“Participant” means any Employee designated by the Corporation or its delegate, in its sole discretion, to participate in the Special Initiative, who meets the eligibility criteria set forth in Section 2 of the Plan, and/or has an Account attributable to a Special Initiative Deferral Election. Notwithstanding the foregoing, an Employee who is designated to participate in the Special Initiative shall cease to be a Participant if such Employee does not make a Special Initiative Deferral Election by the date required by Treasury Regulations Section 1.409A‑2(a)(11). For the avoidance of doubt, an Employee’s eligibility to participate in the main body of the Plan document shall be unrelated to his or her eligibility to participate in this Appendix A.
|
(b)
|
“Special Initiative Deferral Election” means a Participant’s irrevocable election to defer a whole percentage of his or her Special Initiative Payment by timely delivery to the Plan Manager of a Special Initiative Deferral Election Form. Special Initiative Deferral Elections shall be calculated with respect to the gross Special Initiative Payment payable to the Participant prior to any deductions or withholdings, but shall be reduced by the Committee or its delegate to the extent necessary so that Special Initiative Deferral Elections do not exceed 100% of the cash amounts payable to the Participant after deduction of all required income and employment taxes and any other deductions required by law. A Participant’s Special Initiative Deferral Election shall have no effect on such Participant’s Deferral Election, or absence of a Deferral Election, with respect to his or her Base Salary or Eligible Short-Term Incentive Pay.
|
(c)
|
“Special Initiative Deferral Election Form” means a document, in a form or forms approved by the Plan Manager, including electronic, whereby the Participant elects to defer, in whole percentages, up to 75% of a Special Initiative Payment.
|
(d)
|
“Special Initiative Specified Date” means the first Semi-Annual Valuation Date contemporaneous with or immediately following the date that is the second anniversary of the Participant’s Severance From Service.
|
(e)
|
“Subsequent Deferral Election” has the meaning assigned in Paragraph 2(b) of this Appendix A.
|
(a)
|
Special Initiative Deferral Election and Special Initiative Deferral Election Form.
|
Name
|
State or Other Jurisdiction of
Incorporation or Organization
|
|
|
PNC Bancorp, Inc. (1)
|
Delaware
|
PNC Bank, National Association (1)
|
United States
|
PNC Equipment Finance, LLC
|
Delaware
|
PNC Merchant Services Company
|
Delaware
|
PNC NCNVINV, Inc.
|
Delaware
|
PNC Holding, LLC (1)
|
Delaware
|
PNC Investment Company, LLC
|
Delaware
|
PNC Capital Markets, LLC
|
Pennsylvania
|
PNC Capital Finance, LLC
|
Delaware
|
|
|
(1)
|
The names of the subsidiaries of the indicated entities are omitted because such subsidiaries, considered in the aggregate as a single subsidiary, would not constitute a significant subsidiary.
|
•
|
Forms S-3 relating to the Corporation's Dividend Reinvestment and Stock Purchase Plan (No. 333-210994)
|
•
|
Forms S-8 relating to the Corporation's Employee Stock Purchase Plan (No 333-156540)
|
•
|
Forms S-8 relating to the Corporation's Supplemental Incentive Savings Plan and the Corporation and Affiliates' Deferred Compensation Plan (Nos. 333-18069, 333-65040, 333-136808, and 333-172931)
|
•
|
Form S-8 relating to the Corporation's Supplemental Incentive Savings Plan and the Corporation and Affiliates' Deferred Compensation Plan (No. 333-156886)
|
•
|
Form S-8 relating to the Corporation's Deferred Compensation and Incentive Plan (Nos. 333-177896 and 333-198461)
|
•
|
Forms S-8 relating to the Corporation's 2006 Incentive Award Plan (Nos. 333-134169, 333-139345, 333-143182 and 333-177898)
|
•
|
Form S-4 relating to the Corporation's acquisition of National City Corporation (No. 333-155248)
|
•
|
Form S-8 relating to various National City plans (No. 333-156527)
|
•
|
Form S-8 relating to the Corporation's 2016 Incentive Award Plan (No. 333-210995)
|
•
|
Form S-8 relating to the Corporation's Deferred Compensation and Incentive Plan and the Corporation's Directors Deferred Compensation Plan (No. 333-229874)
|
•
|
Form S-3 relating to the shelf registration statement of debt securities, common stock, preferred stock, purchase contracts, units, warrants and depositary shares to be issued by the Corporation (No. 333-228804)
|
|
|
|
|
Name/Signature
|
Capacity
|
/s/ William S. Demchak
William S. Demchak |
Chairman, Chief Executive Officer and President (Principal Executive Officer) and Director
|
/s/ Robert Q. Reilly
Robert Q. Reilly |
Executive Vice President and Chief Financial Officer
(Principal Financial Officer) |
/s/ Gregory H. Kozich
Gregory H. Kozich |
Senior Vice President and Controller
(Principal Accounting Officer) |
|
|
|
|
/s/ Joseph Alvarado
Joseph Alvarado |
Director
|
/s/ Charles E. Bunch
Charles E. Bunch |
Director
|
/s/ Debra A. Cafaro
Debra A. Cafaro |
Director
|
/s/ Marjorie Rodgers Cheshire
Marjorie Rodgers Cheshire |
Director
|
/s/ Andrew T. Feldstein
Andrew T. Feldstein |
Director
|
/s/ Richard J. Harshman
Richard J. Harshman |
Director
|
/s/ Daniel R. Hesse
Daniel R. Hesse |
Director
|
/s/ Richard B. Kelson
Richard B. Kelson |
Director
|
/s/ Linda R. Medler
Linda R. Medler |
Director
|
/s/ Martin Pfinsgraff
Martin Pfinsgraff |
Director
|
/s/ Toni Townes-Whitley
Toni Townes-Whitley |
Director
|
/s/ Michael J. Ward
Michael J. Ward |
Director
|
1.
|
I have reviewed this Annual Report on Form 10-K for the year ended December 31, 2019 of The PNC Financial Services Group, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
|
/s/ William S. Demchak
|
|
William S. Demchak
|
|
Chairman, President and Chief Executive Officer
|
1.
|
I have reviewed this Annual Report on Form 10-K for the year ended December 31, 2019 of The PNC Financial Services Group, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
|
/s/ Robert Q. Reilly
|
|
Robert Q. Reilly
|
|
Executive Vice President and Chief Financial Officer
|
|
|
/s/ William S. Demchak
|
|
William S. Demchak
|
|
Chairman, President and Chief Executive Officer
|
|
|
/s/ Robert Q. Reilly
|
|
Robert Q. Reilly
|
|
Executive Vice President and Chief Financial Officer
|