PNC Bank 2002 Annual Report Download - page 89

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87
NOTE 10 LOANS AND COMMITMENTS TO EXTEND CREDIT
Loans outstanding were as follows:
December 31 - in millions 2002 2001 2000 1999 1998
Commercial $14,987 $15,205 $21,207 $21,468 $25,177
Commercial real estate 2,267 2,372 2,583 2,730 3,449
Consumer 9,854 9,164 9,133 9,348 10,980
Residential mortgage 3,921 6,395 13,264 12,506 12,253
Lease financing 5,081 5,557 4,845 3,663 2,978
Credit card 2,958
Other 415 445 568 682 392
T
otal loans 36,525 39,138 51,600 50,397 58,187
Unearned income (1,075) (1,164) (999) (724) (554)
Total loans, net of unearned income $35,450 $37,974 $50,601 $49,673 $57,633
Loans outstanding and related unfunded commitments are concentrated in PNC’s primary geographic markets. At December
31, 2002, no specific industry concentration exceeded 7.5 % of total commercial loans outstanding and unfunded commitments.
Net Unfunded Commitments
December 31 - in millions 2002 2001
Commercial $19,525 $20,233
Commercial real estate 718 711
Consumer 5,372 4,977
Lease financing 103 146
Other 125 139
Institutional lending repositioning 1,015 4,837
Total $26,858 $31,043
Commitments to extend credit represent arrangements to lend
funds subject to specified contractual conditions. At
December 31, 2002, commercial commitments are reported
net of $6.2 billion of participations, assignments and
syndications, primarily to financial institutions. The
comparable amount was $7.1 billion at December 31, 2001.
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 $3.7 billion at
December 31, 2002 and $4.0 billion at December 31, 2001 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 2002, the largest industry concentration within
standby letters of credit was for real estate projects, which
accounted for approximately 8% of the total. Maturities for
standby letters of credit ranged from 2003 to 2010. See Note
29 Commitments And Guarantees.
At December 31, 2002, $11.6 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 or present
other unfavorable features. The aggregate principal amounts
of these loans were $18 million and $24 million at December
31, 2002 and 2001, respectively. During 2002, new loans of
$52 million were funded and repayments totaled $58 million.