PNC Bank 2005 Annual Report Download - page 2

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TABLE OF CONTENTS
PART I Page
Item 1 Business. 2
Item 1A Risk Factors. 8
Item 1B Unresolved Staff Comments. 11
Item 2 Properties. 11
Item 3 Legal Proceedings. 12
Item 4 Submission of Matters to a Vote of Security
Holders.
Executive Officers of the Registrant
Directors of the Registrant
14
15
15
PART II
Item 5 Market for Registrant's Common Equity, Related
Stockholder Matters and Issuer Purchases of
Equity Securities. 16
Item 6 Selected Financial Data. 17
Item 7 Management's Discussion and Analysis of
Financial Condition and Results of Operations. 19
Item 7A Quantitative and Qualitative Disclosures About
Market Risk. 63
Item 8 Financial Statements and Supplementary Data. 64
Item 9 Changes in and Disagreements With Accountants
on Accounting and Financial Disclosure. 119
Item 9A Controls and Procedures. 119
Item 9B Other Information. 120
PART III
Item 10 Directors and Executive Officers of the
Registrant. 120
Item 11 Executive Compensation. 121
Item 12 Security Ownership of Certain Beneficial Owners
and Management and Related Stockholder
Matters. 121
Item 13 Certain Relationships and Related Transactions. 122
Item 14 Principal Accounting Fees and Services. 122
PART IV
Item 15 Exhibits, Financial Statement Schedules. 122
SIGNATURES 123
EXHIBIT INDEX E-1
PART I
Forward-Looking Statements: From time to time The PNC
Financial Services Group, Inc. (“PNC” or “Corporation”) has
made and may continue to make written or oral forward-looking
statements regarding our outlook or expectations for earnings,
revenues, expenses, capital levels, asset quality or other future
financial or business performance, strategies or expectations,
or the impact of legal, regulatory or supervisory matters on our
business operations or performance. This Annual Report on
Form 10-K (“Report” or “Form 10-K”) also includes forward-
looking statements. With respect to all such forward-looking
statements, you should review our Risk Factors discussion in
Item 1A and our Cautionary Statement Regarding Forward-
Looking Information included in Item 7 of this Report.
ITEM 1 – BUSINESS
BUSINESS OVERVIEW We are one of the largest diversified
financial services companies in the United States, operating
businesses engaged in retail banking, corporate and institutional
banking, asset management, and global fund processing services.
We operate directly and through numerous subsidiaries,
providing many of our products and services nationally and
others in our primary geographic markets in Pennsylvania, New
Jersey, Delaware, Ohio, Kentucky and the greater Washington,
D.C. area. We also provide certain asset management and global
fund processing services internationally. At December 31, 2005,
our consolidated total assets, deposits and shareholders' equity
were $92.0 billion, $60.3 billion and $8.6 billion, respectively.
We were incorp orated under the laws of the Commonwealth of
Pennsylvania in 1983 with the consolidation of Pittsburgh
National Corporation and Provident National Corporation. Since
1983, we have diversified our geographical presence, business
mix and product capabilities through internal growth and
strategic bank and non-bank acquisitions and the formation of
various non-banking subsidiaries.
We include information on significant recent acquisitions and a
planned transaction in Note 2 Acquisitions and Note 26
Subsequent Event in the Notes To Consolidated Financial
Statements in Item 8 of this Report and here by reference.
REVIEW OF LINES OF BUSINESS In addition to the following
information relating to our lines of business, we incorporate
information under the captions Line of Business Highlights,
Product Revenue, Cross-Border Leases and Related Tax and
Accounting Matters, Aircraft and Vehicle Leasing Businesses,
and Business Segments Review in Item 7 of this Report here by
reference. Also, we include financial and other information by
business in Note 21 Segment Reporting in the Notes To
Consolidated Financial Statements in Item 8 of this Report here
by reference.
We operate four major businesses engaged in providing banking,
asset management and global fund processing products and
services. Assets, revenue and earnings attributable to foreign
activities were not material in the periods presented.
During the third quarter of 2005 we reorganized our banking
businesses into two units, Retail Banking and Corporate &
Institutional Banking, aligning our reporting with our client
base and with the organizational changes we made in
connection with our One PNC initiative. The Retail Banking
business segment comprises consumer and small business
customers. The Corporate & Institutional Banking business
segment includes middle market and corporate customers.
Amounts previously reported under several of our former
business segments (Regional Community Banking, PNC
Advisors and Wholesale Banking) have been reclassified to
reflect this new reporting structure. Intercompany eliminations
and other adjustments made to combine Regional Community
Banking and PNC Advisors for prior periods were not
significant. Our Current Reports on Form 8-K dated
September 30, 2005 and December 28, 2005 contain
additional information regarding this new reporting structure.