PNC Bank 2001 Annual Report Download - page 27

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25
FINANCIALS
THE PNC FINANCIAL SERVICES GROUP, INC.
FINANCIAL REVIEW
Selected Consolidated
Financial Data . . . . . . . . . 26
Overview . . . . . . . . . . . . . 28
Review Of Businesses . . . . 31
Regional Community
Banking . . . . . . . . . . . . . . 32
Corporate Banking . . . . . . 33
PNC Real Estate Finance . . 34
PNC Business Credit . . . . 35
PNC Advisors . . . . . . . . . . 36
BlackRock . . . . . . . . . . . . 37
PFPC . . . . . . . . . . . . . . . . 38
Consolidated Statement Of
Income Review . . . . . . . . . 39
Consolidated Balance
Sheet Review . . . . . . . . . . . 41
Risk Factors . . . . . . . . . . . 43
Risk Management . . . . . . . 47
2000 Versus 1999 . . . . . . . . 58
Forward-Looking
Statements . . . . . . . . . . . . 60
REPORTS ON
CONSOLIDATED
FINANCIAL STATEMENTS
Management’s Responsibility
For Financial Reporting . . . 61
Report Of Ernst & Young LLP,
Independent Auditors . . . . . 61
NOTE 14 –
Securitizations . . . . . . . . . . 78
NOTE 15 –
Deposits . . . . . . . . . . . . . . 79
NOTE 16 –
Borrowed Funds . . . . . . . . 79
NOTE 17 –
Capital Securities Of
Subsidiary Trusts . . . . . . . . 79
NOTE 18 –
Shareholders’ Equity . . . . . 80
NOTE 19 –
Regulatory Matters . . . . . . 80
NOTE 20 –
Financial Derivatives . . . . . 81
NOTE 21 –
Employee Benefit Plans . . . 82
NOTE 22 –
Stock-Based Compensation
Plans . . . . . . . . . . . . . . . . 84
NOTE 23 –
Income Taxes . . . . . . . . . . 86
NOTE 24 –
Legal Proceedings . . . . . . . 86
NOTE 25 –
Earnings Per Share . . . . . . 87
NOTE 26 –
Segment Reporting . . . . . . 88
NOTE 27 –
Comprehensive Income . . . 90
NOTE 28 –
Fair Value Of Financial
Instruments . . . . . . . . . . . 91
NOTE 29 –
Unused Line Of Credit . . . 92
NOTE 30 –
Subsequent Events . . . . . . . 92
NOTE 31 –
Parent Company . . . . . . . . 93
CONSOLIDATED
FINANCIAL STATEMENTS
Consolidated Statement Of
Income . . . . . . . . . . . . . . . 62
Consolidated Balance Sheet 63
Consolidated Statement Of
Shareholders’ Equity . . . . . 64
Consolidated Statement
Of Cash Flows . . . . . . . . . 65
NOTES TO
CONSOLIDATED
FINANCIAL STATEMENTS
NOTE 1 –
Accounting Policies . . . . . . 66
NOTE 2 –
Discontinued Operations . . 72
NOTE 3 –
Restatements . . . . . . . . . . . 72
NOTE 4 –
Fourth Quarter Actions . . . 73
NOTE 5 –
Sale Of Subsidiary Stock . . 73
NOTE 6 –
Cash Flows . . . . . . . . . . . . 73
NOTE 7 –
Trading Activities . . . . . . . 73
NOTE 8 –
Securities . . . . . . . . . . . . . 74
NOTE 9 –
Loans And Commitments
To Extend Credit . . . . . . . 75
NOTE 10 –
Nonperforming Assets . . . . 76
NOTE 11 –
Allowance For
Credit Losses . . . . . . . . . . 77
NOTE 12 –
Premises, Equipment And
Leasehold Improvements . . 77
NOTE 13 –
Goodwill And Other
Amortizable Assets . . . . . . 77
STATISTICAL
INFORMATION
Selected Quarterly
Financial Data . . . . . . . . . 94
Analysis Of Year-To-Year
Changes In Net Interest
Income . . . . . . . . . . . . . . . 95
Average Consolidated
Balance Sheet And
Net Interest Analysis . . . . . 96
Summary Of Loan Loss
Experience . . . . . . . . . . . . 98
Allocation Of Allowance
For Credit Losses . . . . . . . 98
Short-Term Borrowings . . . 99
Loan Maturities And
Interest Sensitivity . . . . . . . 99
Time Deposits Of
$100,000 Or More . . . . . . 99