PNC Bank 2001 Annual Report Download - page 78

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Net Unfunded Commitments
December 31 - in millions 2001 2000
Commercial $20,233 $24,253
Commercial real estate 711 1,039
Consumer 4,977 4,414
Lease financing 146 123
Other 139 173
Institutional lending repositioning 4,837 1,700
Total $31,043 $31,702
Commitments to extend credit represent arrangements to
lend funds subject to specified contractual conditions. At
December 31, 2001, commercial commitments are reported
net of $7.1 billion of participations, assignments and
syndications, primarily to financial institutions. The
comparable amount was $7.2 billion at December 31, 2000.
Commitments generally have fixed expiration dates, may
require payment of a fee, and contain termination clauses in
the event the customer’s credit quality deteriorates. Based on
the Corporation’s historical experience, most commitments
expire unfunded, and therefore cash requirements are
substantially less than the total commitment.
Net outstanding letters of credit totaled $4.0 billion at
December 31, 2001 and 2000 and consisted primarily of
standby letters of credit that commit the Corporation to
make payments on behalf of customers if certain specified
future events occur. Such instruments are typically issued to
support industrial revenue bonds, commercial paper, and
bid-or-performance related contracts. At year-end 2001, the
largest industry concentration within standby letters of credit
was for educational services, which accounted for
approximately 9% of the total. Maturities for standby letters
of credit ranged from 2002 to 2011.
At December 31, 2001, $14.7 billion of loans were
pledged to secure borrowings and for other purposes.
Certain directors and executive officers of the
Corporation and its subsidiaries, as well as certain affiliated
companies of these directors and officers, were customers of
and had loans with subsidiary banks in the ordinary course of
business. All such loans were on substantially the same
terms, including interest rates and collateral, as those
prevailing at the time for comparable transactions with other
customers and did not involve more than a normal risk of
collectibility. The aggregate principal amounts of these loans
were $24 million and $29 million at December 31, 2001 and
2000, respectively. During 2001, new loans of $47 million
were funded and repayments totaled $52 million.
NOTE 10 NONPERFORMING ASSETS
The following table sets forth nonperforming assets and related information:
December 31 - dollars in millions 2001 2000 1999 1998 1997
Nonaccrual loans $211 $323 $291 $286 $270
Nonperforming loans held for sale (a) 169 33 17
Foreclosed assets 11 16 17 33 52
T
otal non
p
erformin
g
assets (b) $391 $372 $325 $319 $322
Nonaccrual loans to total loans .56% .64% .59% .50% .50%
Nonperforming assets to total loans, loans held for sale
and foreclosed assets .93 .71 .61 .55 .59
Nonperforming assets to total assets .56 .53 .47 .45 .45
Interest on nonperforming loans
Computed on original terms $27 $42 $28 $25 $31
Recognized 10 10 11 6 6
Past due loans
Accruing loans past due 90 days or more $159 $113 $86 $263 $287
As a percentage of total loans .42% .22% .17% .46% .53%
Past due loans held for sale
Accruing loans held for sale past due 90 days or more $33 $16 $24
As a percentage of total loans held for sale .79% .97% .69%
(a) Includes $6 million of a troubled debt restructured loan held for sale in 2001.
(b) The above table excludes $18 million, $18 million and $13 million of equity management assets at December 31, 2001, 2000 and 1999, respectively, that are carried at estimated fair
value.