PNC Bank 2001 Annual Report Download - page 44

Download and view the complete annual report

Please find page 44 of the 2001 PNC Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 104

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104

42
December 31, 2001 compared with 4 years and 5 months at
December 31, 2000.
Securities designated as held to maturity are carried at
amortized cost and are assets of subsidiaries of a third party
financial institution, which are consolidated in PNC’s financial
statements. The expected weighted-average life of securities
held to maturity was 18 years and 11 months at December
31, 2001. PNC had no securities held to maturity at December
31, 2000.
Details Of Securities
Amortized Fair
In millions Cos
t
Value
December 31, 2001
SECURITIES AVAILABLE FOR SALE
Debt securities
U.S. Treasury and government
agencies $808 $807
Mortgage-backed 7,302 7,261
Asset-backed 5,166 5,093
State and municipal 62 64
Other debt 75 75
Corporate stocks and other 264 245
Total securities available for sale $13,677 $13,545
SECURITIES HELD TO MATURITY
Debt securities
U.S. Treasury and government
agencies $260 $257
Asset-backed 88
Other debt 95 95
Total securities held to maturity $363 $360
December 31, 2000
SECURITIES AVAILABLE FOR SALE
Debt securities
U.S. Treasury and government
agencies $313 $313
Mortgage-backed 4,037 4,002
Asset-backed 902 893
State and municipal 94 96
Other debt 73 73
Corporate stocks and other 537 525
Total securities available for sale $5,956 $5,902
See Securitizations in the Risk Management section of this
Financial Review and Note 14 Securitizations for additional
information regarding the change in securities available for
sale.
FUNDING SOURCES
Total funding sources were $59.4 billion at December 31,
2001 and 2000. Demand and money market deposits
increased due to ongoing strategic marketing efforts to retain
customers, as higher-cost, less valuable retail certificates of
deposit were de-emphasized. The change in the composition
of borrowed funds reflected a shift within categories to
manage overall funding costs. See Liquidity Risk under Risk
Management in the Financial Review section for additional
information.
Details Of Funding Sources
December 31 - in millions 2001 2000
Deposits
Demand and money marke
t
$32,589 $28,771
Savin
g
s1,942 1,915
Retail certificates of de
p
osi
t
10,727 14,175
Other time 472 567
De
p
osits in forei
g
n offices 1,574 2,236
T
otal de
p
osits 47,304 47,664
Borrowed funds
Federal funds purchased 167 1,445
Repurchase agreements 954 607
Bank notes and senior debt 6,362 6,110
Federal Home Loan Bank
borrowings 2,047 500
Subordinated debt 2,298 2,407
Other borrowed funds 262 649
Total borrowed funds 12,090 11,718
Total $59,394 $59,382
CAPITAL
The access to and cost of funding new business initiatives
including acquisitions, the ability to engage in expanded
business activities, the ability to pay dividends, the level of
deposit insurance costs, and the level and nature of
regulatory oversight depend, in large part, on a financial
institution’s capital strength. At December 31, 2001, the
Corporation and each bank subsidiary were considered
“well-capitalized” based on regulatory capital ratio
requirements. See Note 19 Regulatory Matters and
Supervision and Regulation in the Risk Factors section of
this Financial Review for additional information.