PNC Bank 2007 Annual Report Download - page 97

Included in outstandings for the senior and subordinated notes
in the table above are basis adjustments of $21 million and
$103 million, respectively, related to fair value accounting
hedges as of December 31, 2007.
Total borrowed funds of $30.9 billion at December 31, 2007
have scheduled or anticipated repayments for the years 2008
through 2013 and thereafter as follows:
• 2008: $18.3 billion,
• 2009: $3.6 billion,
• 2010: $3.3 billion,
• 2011: $.2 billion,
• 2012: $1.1 billion, and
• 2013 and thereafter: $4.4 billion.
Included in borrowed funds are FHLB borrowings of $7.1
billion at December 31, 2007, $6.9 billion of which are
collateralized by a blanket lien on residential mortgage and
other real estate-related loans and mortgage-backed and
treasury securities. The remaining $200 million are
collateralized by pledged mortgage-backed and treasury
securities. FHLB advances of $2.0 billion have scheduled
maturities of less than one year. The remainder of the FHLB
borrowings have balances that will mature from 2009 – 2017,
with interest rates ranging from 1.25% – 5.38%.
Included in borrowed funds at December 31, 2006 were $1
billion of Floating Rate Exchangeable Senior Notes that were
issued through PNC Funding Corp, a subsidiary of PNC.
These notes were redeemed on December 21, 2007 at a price
equal to principal plus accrued and unpaid interest.
The $604 million of junior subordinated debt included in the
above table represents the only debt redeemable prior to
maturity. The call price and related premiums are discussed in
Note 12 Capital Securities of Subsidiary Trusts.
N
OTE 12 C APITAL S ECURITIES OF
S UBSIDIARY T RUSTS
At December 31, 2007, the following capital securities
totaling $572 million, net of discount, represent non-voting
preferred beneficial interests in the assets of PNC Capital
Trusts C and D, Monroe Trusts II and III, and Yardville
Capital Trusts II, III, IV, V and VI (the “Trusts”). The Monroe
Trusts were acquired in March 2007 as part of the Mercantile
acquisition. The Yardville Capital Trusts were acquired in
October 2007 as part of the Yardville acquisition. All of these
Trusts are wholly owned finance subsidiaries of PNC. In the
event of certain changes or amendments to regulatory
requirements or federal tax rules, the capital securities are
redeemable in whole. The financial statements of the Trusts
are not included in PNC’s consolidated financial statements in
accordance with GAAP.
• 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, 2007 was 5.69%. 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.
• Monroe Trust II, formed in July 2003, issued $4
million of capital securities due July 31, 2033,
bearing an interest rate equal to 3-month LIBOR plus
310 basis points. The rate in effect at December 31,
2007 was 8.33%. Monroe Trust II securities are
redeemable on or after July 31, 2008 at par.
• Monroe Trust III, formed in September 2005, issued
$8 million of capital securities due December 15,
2035 at a fixed rate of 6.253%. The fixed rate
remains in effect until September 15, 2010 at which
time the securities pay a floating rate of LIBOR plus
155 basis points. Monroe Trust III securities are
redeemable on or after December 15, 2010.
• Yardville Capital Trust II, formed in June 2000
issued $15 million of 9.5% capital securities due
June 22, 2030 that are redeemable on or after
June 23, 2010 at par plus a premium of up to 4.75%.
• Yardville Capital Trust III, formed in March 2001
issued $6 million of 10.18% capital securities due
June 2031 that are redeemable on or after June 8,
2011 at par plus a premium of up to 5.09%.
• Yardville Capital Trust IV, formed in February 2003
issued $15 million of capital securities due March 1,
2033, bearing an interest rate equal to 3-month
LIBOR plus 340 basis points. The rate in effect at
December 31, 2007 was 8.52%. Yardville Capital
Trust IV securities are redeemable on or after
March 1, 2008 at par.
• Yardville Capital Trust V, formed in September
2003, issued $10 million of capital securities due
October 8, 2033, bearing an interest rate equal to
3-month LIBOR plus 300 basis points. The rate in
effect at December 31, 2007 was 8.24%. Yardville
Capital Trust V securities are redeemable on or after
October 8, 2008 at par.
• Yardville Capital Trust VI, formed in June 2004,
issued $15 million of capital securities due July 23,
2034, bearing an interest rate equal to 3-month
LIBOR plus 270 basis points. The rate in effect at
December 31, 2007 was 7.85%. Yardville Capital
Trust VI securities are redeemable on or after
July 23, 2009 at par.
At December 31, 2007, PNC’s junior subordinated debt of
$604 million represented debentures purchased and held as
assets by the Trusts.
The obligations of the respective parent of each Trust, when
taken collectively, are the equivalent of a full and unconditional
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