PNC Bank 2007 Annual Report Download - page 112

N OTE 20 E ARNINGS P ER S HARE
The following table sets forth basic and diluted earnings per common share calculations:
Year ended December 31 - in millions, except share and per share data 2007 2006 2005
C ALCULATION O F B ASIC E ARNINGS P ER C OMMON S HARE
Net income $1,467 $2,595 $1,325
Less: Preferred dividends declared 11
Net income applicable to basic earnings per common share $1,467 $2,594 $1,324
Basic weighted-average common shares outstanding (in thousands) 331,300 291,758 286,276
Basic earnings per common share $4.43 $8.89 $4.63
C ALCULATION O F D ILUTED E ARNINGS P ER C OMMON S HARE (a)
Net income $1,467 $2,595 $1,325
Less: BlackRock adjustment for common stock equivalents 867
Net income applicable to diluted earnings per common share $1,459 $2,589 $1,318
Basic weighted-average common shares outstanding (in thousands) 331,300 291,758 286,276
Weighted-average common shares to be issued using average market price and assuming:
Conversion of preferred stock Series A and B 65 70 78
Conversion of preferred stock Series C and D 542 584 618
Conversion of debentures 222
Exercise of stock options 1,774 2,178 1,178
Incentive/performance unit share and restricted stock/unit awards 1,474 1,930 1,688
Diluted weighted-average common shares outstanding (in thousands) 335,157 296,522 289,840
Diluted earnings per common share $4.35 $8.73 $4.55
(a) Excludes stock options considered to be anti-dilutive (in thousands) 4,135 4,230 10,532
N OTE 21 S UMMARIZED F INANCIAL
I NFORMATION OF B LACK R OCK
As required by SEC Regulation S-X, summarized
consolidated financial information of BlackRock follows (in
millions).
December 31 2007
Total assets $22,562
Total liabilities $10,387
Non-controlling interest 578
Stockholders’ equity 11,597
Total liabilities, non-controlling Interest and
stockholders’ equity $22,562
Year ended December 31 2007
Total revenue $4,845
Total expenses 3,551
Operating income 1,294
Non-operating income 529
Income before income taxes and non-controlling
interest 1,823
Income taxes 464
Non-controlling interest 364
Net income $995
N OTE 22 R EGULATORY M ATTERS
We are subject to the regulations of certain federal and state
agencies and undergo periodic examinations by such
regulatory authorities.
The access to and cost of funding new business initiatives
including acquisitions, the ability to pay dividends, the level
of deposit insurance costs, and the level and nature of
regulatory oversight depend, in large part, on a financial
institution’s capital strength. The minimum U.S. regulatory
capital ratios are 4% for tier 1 risk-based, 8% for total risk-
based and 4% for leverage. However, regulators may require
higher capital levels when particular circumstances warrant.
To qualify as “well capitalized,” regulators require banks to
maintain capital ratios of at least 6% for tier 1 risk-based, 10%
for total risk-based and 5% for leverage. At December 31,
2007 and December 31, 2006, each of our domestic bank
subsidiaries met the “well capitalized” capital ratio
requirements.
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