PNC Bank 2002 Annual Report Download - page 27

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25
THE PNC FINANCIAL SERVICES GROUP, INC.
FINANCIALS
FINANCIAL REVIEW
Selected Consolidated
Financial Data . . . . . . . . . 26
Overview . . . . . . . . . . . . . 28
Review Of Businesses . . . . 30
Regional Community
Banking . . . . . . . . . . . . . . 31
Wholesale Banking
Corporate Banking . . . . . 32
PNC Real Estate
Finance . . . . . . . . . . . . . 33
PNC Business Credit . . . 34
PNC Advisors . . . . . . . . . . 35
BlackRock . . . . . . . . . . . . 36
PFPC . . . . . . . . . . . . . . . . 37
Consolidated Statement Of
Income Review . . . . . . . . . 38
Consolidated Balance
Sheet Review . . . . . . . . . . . 40
Risk Factors . . . . . . . . . . . 48
Risk Management . . . . . . . 53
2001 Versus 2000 . . . . . . . 64
Forward-Looking
Statements . . . . . . . . . . . . 66
REPORTS ON
CONSOLIDATED
FINANCIAL STATEMENTS
Management’s Responsibility
For Financial Reporting . . . 67
Report Of
Deloitte &Touche LLP,
Independent Auditors . . . . . 67
NOTE 14 –
Goodwill And Other
Intangible Assets . . . . . . . . 89
NOTE 15 –
Securitizations . . . . . . . . . . 90
NOTE 16 –
Deposits . . . . . . . . . . . . . . 92
NOTE 17 –
Borrowed Funds . . . . . . . . 92
NOTE 18 –
Capital Securities Of
Subsidiary Trusts . . . . . . . . 92
NOTE 19 –
Shareholders’ Equity . . . . . 92
NOTE 20 –
Financial Derivatives . . . . . 93
NOTE 21 –
Employee Benefit Plans . . . 93
NOTE 22 –
Stock-Based Compensation
Plans . . . . . . . . . . . . . . . . 96
NOTE 23 –
Income Taxes . . . . . . . . . . 98
NOTE 24 –
Legal Proceedings . . . . . . . 98
NOTE 25 –
Earnings Per Share . . . . . . 99
NOTE 26 –
Segment Reporting . . . . . .100
NOTE 27 –
Comprehensive Income . . .102
NOTE 28 –
Fair Value Of Financial
Instruments . . . . . . . . . . .103
NOTE 29 –
Commitments And
Guarantees . . . . . . . . . . . .104
NOTE 30 –
Unused Line Of Credit . . .106
NOTE 31 –
Parent Company . . . . . . . .106
NOTE 32 –
Subsequent Event . . . . . . .107
CONSOLIDATED
FINANCIAL STATEMENTS
Consolidated Statement Of
Income . . . . . . . . . . . . . . . 68
Consolidated Balance Sheet 69
Consolidated Statement Of
Shareholders’ Equity . . . . . 70
Consolidated Statement
Of Cash Flows . . . . . . . . . 71
NOTES TO
CONSOLIDATED
FINANCIAL STATEMENTS
NOTE 1–
Accounting Policies . . . . . . 72
NOTE 2 –
NBOC Acquisition . . . . . . 81
NOTE 3 –
Regulatory Matters . . . . . . 82
NOTE 4 –
Discontinued Operations . . 83
NOTE 5–
Fourth Quarter
2001 Actions . . . . . . . . . . 83
NOTE 6–
Sale Of Subsidiary Stock . . 84
NOTE 7–
Cash Flows . . . . . . . . . . . . 84
NOTE 8–
Trading Activities . . . . . . . 84
NOTE 9–
Securities . . . . . . . . . . . . . 85
NOTE 10 –
Loans And Commitments
To Extend Credit . . . . . . . 87
NOTE 11 –
Nonperforming Assets . . . . 88
NOTE 12 –
Allowances For
Credit Losses And
Unfunded Loan
Commitments And
Letters Of Credit . . . . . . . . 89
NOTE 13 –
Premises, Equipment And
Leasehold Improvements . . 89
STATISTICAL
INFORMATION
Selected Quarterly
Financial Data . . . . . . . . .108
Analysis Of Year-To-Year
Changes In Net Interest
Income . . . . . . . . . . . . . . .109
Average Consolidated
Balance Sheet And
Net Interest Analysis . . . . .110
Summary Of Loan Loss
Experience . . . . . . . . . . . .112
Allocation Of Allowance
For Credit Losses . . . . . . .112
Short-Term Borrowings . . .113
Loan Maturities And
Interest Sensitivity . . . . . . .113
Time Deposits Of
$100,000 Or More . . . . . .113
Common Stock
Prices/Dividends Declared . .113