PNC Bank 2000 Annual Report Download - page 76

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73
The Corporation also retained interest-only strips relat-
ed to residential mortgage loans and student loans totaling
$16 million and $46 million, respectively, at December 31,
2000. The loans associated with these retained interests
were sold and removed from the Corporation’s balance sheet
at securitization.
NO T E 1 3 D E P O S I T S
The aggregate amount of time deposits with a denomination
greater than $100,000 was $5.8 billion and $6.8 billion at
December 31, 2000 and 1999, respectively. Remaining con-
tractual maturities of time deposits for the years 2001
through 2005 and thereafter are $14.5 billion, $1.1 billion,
$270 million, $261 million and $849 million, respectively.
NO T E 1 4 B O R R O W E D FU N D S
Bank notes have interest rates ranging from 5.93% to
6.97% with approximately one-third maturing in 2001.
Senior and subordinated notes consisted of the following:
December 31, 2000
Dollars in millions Outstanding Stated Rate Maturity
Senior . . . . . . . . . . $597 6.95% – 7.00% 2002-2004
Subordinated
Nonconvertible . . 2,407 6 . 1 3%– 9.88%2001-2009
Total . . . . . . . . . . $3,004
Borrowed funds have scheduled repayments for the years
2001 through 2005 and thereafter of $5.3 billion, $1.8 bil-
lion, $1.8 billion, $0.5 billion and $2.3 billion, respectively.
Excluded from continuing operations are Federal Home
Loan Bank obligations of $4.4 billion at December 31,
2000. These obligations have maturities ranging from 2001
to 2018 and interest rates ranging from 1.00% to 7.91% .
NO T E 1 5 CA P I TA L SE C U R I T I E S
O F SU B S I D I A R Y TR U S T S
Mandatorily Redeemable Capital Securities of Subsidiary
Trusts (“Capital Securities” ) include nonvoting preferred
beneficial interests in the assets of PNC Institutional
Capital Trust A, Trust B and Trust C. Trust A, formed in
December 1996, holds $350 million of 7.95% junior subor-
dinated debentures, due December 15, 2026, and
redeemable after December 15, 2006, at a declining
redemption price ranging from 103.975% to par on or after
December 15, 2016.
Trust B, formed in May 1997, holds $300 million of
8.315% junior subordinated debentures due May 15, 2027,
and redeemable after May 15, 2007, at a declining redemp-
tion price ranging from 104.1575% to par on or after May
15, 2017. Trust C, formed in June 1998, holds $200 million
of junior subordinated debentures due June 1, 2028, bear-
ing interest at a floating rate per annum equal to 3-month
LIBOR plus 57 basis points. The rate in effect at December
31, 2000 was 7.31% . Trust C Capital Securities are
redeemable on or after June 1, 2008 at par. Cash distribu-
tions on the Capital Securities are made to the extent inter-
est on the debentures is received by the Trusts. In the event
of certain changes or amendments to regulatory requirements
or federal tax rules, the Capital Securities are redeemable
in whole.
Trust A is a wholly-owned finance subsidiary of PNC
Bank, N.A. and Trust B and Trust C are wholly-owned
finance subsidiaries of the Corporation. Distributions on the
preferred beneficial interests in the assets of Trust A, Trust
B and Trust C are fully and unconditionally guaranteed by
their respective parent companies.
NO T E 1 6 SH A R E H O L D E R S ’ EQ U I T Y
Information related to preferred stock is as follows:
December 31 Liquidation Preferred Shares
Shares in thousands Value per Share 2000 1999
Authorized
$1 par value . . . . . . . . . 17,224 17,300
Issued and outstanding
Series A . . . . . . . . . . . . $40 11 12
Series B . . . . . . . . . . . . 40 33
Series C . . . . . . . . . . . . 20 229 255
Series D . . . . . . . . . . . . 20 318 367
Series F . . . . . . . . . . . . 50 6,000 6,000
Total . . . . . . . . . . . . . . 6,561 6,637
Series A through D are cumulative and, except for Series B,
are redeemable at the option of the Corporation. Annual
dividends on Series A, B and D preferred stock total $1.80
per share and on Series C preferred stock total $1.60 per
share. Holders of Series A through D preferred stock are
entitled to a number of votes equal to the number of full
shares of common stock into which such preferred stock is
convertible. Series A through D preferred stock have the
following conversion privileges: (i) one share of Series A or
Series B is convertible into eight shares of common stock;
and (ii) 2.4 shares of Series C or Series D are convertible
into four shares of common stock.