PNC Bank 2001 Annual Report Download - page 18

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REAL ESTATE FINANCE Distinguished by
an expanding array of products and serv-
ices and a strong technology platform,
PNC Real Estate Finance delivered
a diverse income stream in 2001.
Solidifying customer relationships
and cross-selling noncredit products
and services is an important part of
PNC Real Estate Finance’s strategy to
enhance the quality of its revenue. A
keen understanding of clients’ businesses
has provided the opportunity to
broaden client relationships through
the sale of noncredit products that
facilitate their strategic business and
financial goals.
In 2001, noninterest income rep-
resented approximately 43% of total
revenue. Revenue from products such
as treasury management and loan serv-
icing are particularly value-added
because they generate recurring income
and often result in longer-term client
relationships.
Acquisitions are helping to
enhance PNC Real Estate Finance’s
ability to provide broad-based financing
and servicing solutions. In October
2001, PNC Real Estate Finance
acquired certain lending- and servicing-
related assets of TRI Acceptance
Corporation, a provider of loans for
market-rate and affordable multi-family
and senior housing. The acquisition
was immediately accretive to earnings
and expanded PNC Real Estate
Finance’s multi-family servicing reach.
Also in 2001, Midland Loan
Services, a PNC Real Estate Finance
company and the nation’s second-
largest servicer of commercial
mortgage-backed securities, acquired
Zenetics, LLC, a developer of
commercial real estate loan origination
technology. Midland is combining
Zenetics’ browser-based technology
with its Enterprise! Loan Management
System to create a comprehensive,
Web-based commercial loan origination
and management solution.
Midland’s ability to leverage
technology and provide quality service
helped it to increase its commercial
mortgage servicing portfolio 26%
to $68 billion in 2001 and earn the
highest ratings from both Fitch and
Standard & Poor’s.
PNC Real Estate Finance remains
focused on adding value and building
wealth for clients by combining tradi-
tional commercial real estate financing
products with innovative financial and
technology-based solutions.
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