PNC Bank 2005 Annual Report Download - page 92

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NOTE 12 DEPOSITS
The aggregate amount of time deposits with a denomination
of $100,000 or more was $7.1 billion at December 31, 2005
and $5.7 billion at December 31, 2004.
Contractual maturities of time deposits for the years 2006
through 2010 and thereafter are as follows:
• 2006: $11.2 billion,
• 2007: $2.8 billion,
• 2008: $.4 billion,
• 2009: $.3 billion, and
• 2010 and thereafter: $1.7 billion.
NOTE 13 BORROWED FUNDS
Bank notes at December 31, 2005 totaling $1.437 billion
have interest rates ranging from 2.75% to 4.35% with
approximately $850 million maturing in 2006. Senior and
subordinated notes consisted of the following:
December 31, 2005
Dollars in millions
Outstanding Stated Rate Maturity
Senior
Nonconvertible $2,188 4.20% – 5.75% 2006 – 2010
Convertible 250 2.625 2035
Total senior 2,438
Subordinated
Junior 1,538 4.98 – 10.01 2026 – 2033
All other 2,931 4.88 – 9.65 2007 – 2017
Total subordinated 4,469
Total senior and
subordinated $6,907
Total borrowed funds at December 31, 2005 have scheduled
repayments for the years 2006 through 2010 and thereafter as
follows:
• 2006: $10.1 billion,
• 2007: $1.1 billion,
• 2008: $.5 billion,
• 2009: $.9 billion, and
• 2010 and thereafter: $4.3 billion.
Included in borrowed funds are FHLB advances of $1.2
billion at December 31, 2005, $1.1 billion of which are
collateralized by a blanket lien on residential mortgage and
other real estate-related loans and mortgage-backed
securities.
Included in outstandings for the senior and subordinated
notes in the table above are basis adjustments of negative $7
million and positive $32 million, respectively, related to fair
value accounting hedges.
See Note 14 Capital Securities of Subsidiary Trusts for
information about the $1.5 billion of junior subordinated
debt.
NOTE 14 CAPITAL SECURITIES OF
SUBSIDIARY TRUSTS
These capital securities represent non-voting preferred
beneficial interests in the assets of PNC Institutional Capital
Trusts A and B, PNC Capital Trusts C and D, UNB Capital
Trust I and Capital Statutory Trust II, and the Riggs Capital
Trust and Capital Trust II (the “Trusts”). Trust A is a wholly
owned finance subsidiary of PNC Bank, N.A., PNC’ s
principal bank subsidiary. All other Trusts are wholly owned
finance subsidiaries of PNC. The UNB Trusts were acquired
effective January 1, 2004 as part of the United National
acquisition. The Riggs Trusts were acquired in May 2005 as
part of the Riggs acquisition. In the event of certain changes
or amendments to regulatory requirements or federal tax rules,
the capital securities are redeemable in whole. With the
exception of Riggs Capital Trust, the financial statements of
the Trusts are not included in PNC’ s consolidated financial
statements in accordance with GAAP.
• Trust A, formed in December 1996, issued $350
million of 7.95% capital securities due December 15,
2026, that are redeemable after December 15, 2006 at
a premium that declines from 103.975% to par on or
after December 15, 2016.
• Trust B, formed in May 1997, issued $300 million of
8.315% capital securities due May 15, 2027, that are
redeemable after May 15, 2007 at a premium that
declines from 104.1575% to par on or after May 15,
2017.
• Trust C, formed in June 1998, issued $200 million of
capital securities due June 1, 2028, bearing interest at
a floating rate per annum equal to 3-month LIBOR
plus 57 basis points. The rate in effect at December
31, 2005 was 4.98%. Trust C Capital Securities are
redeemable on or after June 1, 2008 at par.
• Trust D, formed in December 2003, issued $300
million of 6.125% capital securities due December
15, 2033 that are redeemable on or after December
18, 2008 at par.
• UNB Capital Trust I, formed in March 1997 with $16
million outstanding of 10.01% capital securities due
March 15, 2027, that are redeemable on or after
March 15, 2007 at a premium that declines from
105.00% to par on or after March 15, 2017.
• UNB Capital Statutory Trust II, formed in December
2001, issued $30 million of capital securities due
December 18, 2031, bearing interest at a floating rate
per annum equal to 3-month LIBOR plus 360 basis
points. The rate in effect at December 31, 2005 was
8.10%. Trust II is redeemable on or after December
18, 2006 at par.
• Riggs Capital Trust was formed in December 1996
when $150 million of 8 5/8% capital securities were
issued. These securities are due December 31, 2026,
and are redeemable after December 31, 2006 at a
premium that declines from 104.313% to par on or
after December 31, 2016. Riggs had acquired more
than 50% of the capital securities and, therefore,
under FIN 46R PNC is deemed to be the primary
beneficiary of the Trust. Accordingly, the financial
statements of this Trust are included in PNC’ s
consolidated financial statements. The net