PNC Bank 2007 Annual Report Download - page 93

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Net Unfunded Credit Commitments
December 31 - in millions 2007 2006
Commercial $39,171 $31,009
Consumer 10,875 10,495
Commercial real estate 2,734 2,752
Other 567 579
Total $53,347 $44,835
Commitments to extend credit represent arrangements to lend
funds subject to specified contractual conditions. At
December 31, 2007, commercial commitments are reported
net of $8.9 billion of participations, assignments and
syndications, primarily to financial services companies. The
comparable amount at December 31, 2006 was $8.3 billion.
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
our historical experience, most commitments expire unfunded,
and therefore cash requirements are substantially less than the
total commitment. Consumer home equity lines of credit
accounted for 80% of consumer unfunded credit
commitments.
Unfunded credit commitments related to Market Street totaled
$8.8 billion at December 31, 2007 and $5.6 billion at
December 31, 2006 and are included in the preceding table
primarily within the “Commercial” and “Consumer”
categories.
Note 24 Commitments and Guarantees includes information
regarding standby letters of credit and bankers’ acceptances.
At December 31, 2007, the largest industry concentration was
for general medical and surgical hospitals, which accounted
for approximately 5% of the total letters of credit and bankers’
acceptances.
At December 31, 2007, we pledged $1.6 billion of loans to the
Federal Reserve Bank (“FRB”) and $33.5 billion of loans to
the Federal Home Loan Bank (“FHLB”) as collateral for the
contingent ability to borrow, if necessary.
Certain directors and executive officers of PNC 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 $13 million at December 31, 2007 and $18
million at December 31, 2006. During 2007, new loans of $48
million were funded and repayments totaled $53 million.
88