PNC Bank 2006 Annual Report Download - page 14

resources to attracting and retaining talented professionals and
to the ongoing enhancement of its investment technology and
operating capabilities to deliver on its strategy.
PFPC
PFPC is a leading full service provider of processing,
technology and business solutions for the global investment
industry. Securities services include custody, securities
lending, and accounting and administration for funds
registered under the 1940 Act and alternative investments.
Investor services include transfer agency, managed accounts,
subaccounting, and distribution. PFPC serviced $2.2 trillion in
total assets and 68 million shareholder accounts as of
December 31, 2006 both domestically and internationally
through its Ireland and Luxembourg operations.
PFPC focuses technological resources on driving efficiency
through streamlining operations and developing flexible
systems architecture and client-focused servicing solutions.
SUBSIDIARIES Our corporate legal structure at December 31,
2006 consisted of two subsidiary banks, including their
subsidiaries, and approximately 60 active non-bank
subsidiaries. PNC Bank, N.A., headquartered in Pittsburgh,
Pennsylvania, is our principal bank subsidiary. At
December 31, 2006, PNC Bank, N.A. had total consolidated
assets representing approximately 89% of our consolidated
assets. Our other bank subsidiary is PNC Bank, Delaware. For
additional information on our subsidiaries, you may review
Exhibit 21 to this Report.
STATISTICAL DISCLOSURE BY BANK HOLDING COMPANIES
The following statistical information is included on the
indicated pages of this Report and is incorporated herein by
reference:
Form 10-K page
Average Consolidated Balance Sheet And Net Interest
Analysis 119
Analysis Of Year-To-Year Changes In Net Interest
Income 118
Book Values Of Securities 28 and 89-91
Maturities And Weighted-Average Yield Of Securities 91
Loan Types 27, 92 and 120
Selected Loan Maturities And Interest Sensitivity 122
Nonaccrual, Past Due And Restructured Loans And
Other Nonperforming Assets 49,75-76, 94 and 120
Potential Problem Loans And Loans Held For Sale 29-30, 49
Summary Of Loan Loss Experience 49-50 and 121
Assignment Of Allowance For Loan And Lease Losses 49-50 and 121
Average Amount And Average Rate Paid On Deposits 119
Time Deposits Of $100,000 Or More 97 and 122
Selected Consolidated Financial Data 18-19
SUPERVISION AND REGULATION
O VERVIEW
PNC is a bank holding company registered under the Bank
Holding Company Act of 1956 as amended (“BHC Act”) and
a financial holding company under the Gramm-Leach-Bliley
Act (“GLB Act”).
We are subject to numerous governmental regulations, some
of which are highlighted below. You should also read Note 4
Regulatory Matters in the Notes To Consolidated Financial
Statements in Item 8 of this Report, included here by
reference, for additional information regarding our regulatory
issues. Applicable laws and regulations restrict permissible
activities and investments and require compliance with
protections for loan, deposit, brokerage, fiduciary, mutual
fund and other customers, among other things. They also
restrict our ability to repurchase stock or to receive dividends
from bank subsidiaries and impose capital adequacy
requirements. The consequences of noncompliance can
include substantial monetary and nonmonetary sanctions.
In addition, we are subject to comprehensive examination and
supervision by, among other regulatory bodies, the Board of
Governors of the Federal Reserve System (“Federal Reserve”)
and the Office of the Comptroller of the Currency (“OCC”).
We are subject to examination by these regulators, which
results in examination reports and ratings (which are not
publicly available) that can impact the conduct and growth of
our businesses. These examinations consider not only
compliance with applicable laws and regulations, but also
capital levels, asset quality and risk, management ability and
performance, earnings, liquidity, and various other factors. An
examination downgrade by any of our federal bank regulators
potentially can result in the imposition of significant
limitations on our activities and growth. These regulatory
agencies generally have broad discretion to impose restrictions
and limitations on the operations of a regulated entity where
the agencies determine, among other things, that such
operations are unsafe or unsound, fail to comply with
applicable law or are otherwise inconsistent with laws and
regulations or with the supervisory policies of these agencies.
This supervisory framework could materially impact the
conduct, growth and profitability of our operations.
We are also subject to regulation by the Securities and
Exchange Commission (“SEC”) by virtue of our status as a
public company and due to the nature of some of our
businesses.
As a regulated financial services firm, our relationships and
good standing with regulators are of fundamental importance
to the continuation and growth of our businesses. The Federal
Reserve, OCC, SEC, and other domestic and foreign
regulators have broad enforcement powers, and powers to
approve, deny, or refuse to act upon our applications or
notices to conduct new activities, acquire or divest businesses
or assets, or reconfigure existing operations.
Over the last several years, there has been an increasing
regulatory focus on compliance with anti-money laundering
laws and regulations, resulting in, among other things, several
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