PNC Bank 2007 Annual Report Download - page 94

Download and view the complete annual report

Please find page 94 of the 2007 PNC Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 141

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141

N
OTE
6A
SSET
Q
UALITY
The following table sets forth nonperforming assets and related information:
December 31 - dollars in millions 2007 2006
Nonaccrual loans
Commercial $193 $109
Commercial real estate 212 12
Consumer 17 13
Residential mortgage 10 12
Lease financing 31
Total nonaccrual loans 435 147
Restructured loans 2
Total nonperforming loans 437 147
Foreclosed and other assets
Lease financing 11 12
Residential mortgage 16 10
Other 14 2
Total foreclosed and other assets 41 24
Total nonperforming assets (a) (b) $478 $171
Nonperforming loans to total loans .64% .29%
Nonperforming assets to total loans and foreclosed assets .70 .34
Nonperforming assets to total assets .34 .17
Interest on nonperforming loans
Computed on original terms $51 $15
Recognized prior to nonperforming status 32 4
Past due loans
Accruing loans past due 90 days or more $106 $50
As a percentage of total loans .16% .10%
(a) Excludes equity management assets that are carried at estimated fair value of $4 million at December 31, 2007 and $11 million (including $4 million of troubled debt restructured
assets) at December 31, 2006.
(b) Excludes loans held for sale carried at lower of cost or market value related to the Mercantile and Yardville acquisitions of $25 million at December 31, 2007.
Changes in the allowance for loan and lease losses were as
follows:
In millions 2007 2006 2005
January 1 $ 560 $ 596 $ 607
Charge-offs (245) (180) (129)
Recoveries (a) 45 40 99
Net charge-offs (a) (200) (140) (30)
Provision for credit losses 315 124 21
Acquired allowance (b) 152 23
Net change in allowance for unfunded
loan commitments and letters of credit 3(20) (25)
December 31 $ 830 $ 560 $ 596
(a) Amount for 2005 included the impact of a $53 million loan recovery.
(b) Mercantile and Yardville in 2007 and Riggs in 2005.
Changes in the allowance for unfunded loan commitments and
letters of credit were as follows:
In millions 2007 2006 2005
Allowance at January 1 $120 $100 $ 75
Acquired allowance- Mercantile 17
Net change in allowance for unfunded loan
commitments and letters of credit (3) 20 25
December 31 $134 $120 $100
All nonperforming loans at December 31, 2007 and 2006 are
considered impaired, Under SFAS 114, which excludes leases
and smaller homogeneous type loans (i.e., consumer-related
loans), impaired loans amounted to $407 million at
December 31, 2007 and $121 million at December 31, 2006
and had a corresponding specific allowance for loan and lease
losses of $124 million and $32 million, respectively. The
average balance of SFAS 114 impaired loans was $200
million in 2007, $147 million 2006 and $106 million in 2005.
We did not recognize any interest income on loans while they
were impaired in 2007, 2006 or 2005.
89