PNC Bank 2009 Annual Report Download - page 170

financial statement reporting (GAAP), including the
presentation of net income attributable to noncontrolling
interests. Assets, revenue and earnings attributable to foreign
activities were not material in the periods presented for
comparative purposes.
B USINESS S EGMENT P RODUCTS A ND S ERVICES
Retail Banking provides deposit, lending, brokerage, trust,
investment management, and cash management services to
consumer and small business customers within our primary
geographic markets. Our customers are serviced through our
branch network, call centers and the internet. The branch
network is located primarily in Pennsylvania, Ohio, New
Jersey, Michigan, Maryland, Illinois, Indiana, Kentucky,
Florida, Missouri, Virginia, Delaware, Washington, D.C., and
Wisconsin.
Corporate & Institutional Banking provides lending, treasury
management, and capital markets-related products and
services to mid-sized corporations, government and
not-for-profit entities, and selectively to large corporations.
Lending products include secured and unsecured loans, letters
of credit and equipment leases. Treasury management services
include cash and investment management, receivables
management, disbursement services, funds transfer services,
information reporting, and global trade services. Capital
markets-related products and services include foreign
exchange, derivatives, loan syndications, mergers and
acquisitions advisory and related services to middle-market
companies, securities underwriting, and securities sales and
trading. Corporate & Institutional Banking also provides
commercial loan servicing, and real estate advisory and
technology solutions for the commercial real estate finance
industry. Corporate & Institutional Banking provides products
and services generally within our primary geographic markets,
with certain products and services offered nationally.
Asset Management Group includes personal wealth
management for high net worth and ultra high net worth
clients and institutional asset management. Wealth
management products and services include financial planning,
customized investment management, private banking, tailored
credit solutions and trust management and administration for
individuals and their families. Institutional asset management
provides investment management, custody, and retirement
planning services. The institutional clients include
corporations, foundations and unions and charitable
endowments located primarily in our geographic footprint.
This segment includes the asset management businesses
acquired through the National City acquisition and the legacy
PNC wealth management business previously included in the
Retail Banking segment.
Residential Mortgage Banking directly originates primarily
first lien residential mortgage loans on a nationwide basis with
a significant presence within the retail banking footprint and
also originates loans through joint venture partners. Mortgage
loans represent loans collateralized by one-to-four-family
residential real estate and are made to borrowers in good
credit standing. These loans are typically underwritten to
government agency and/or third party standards, and sold,
servicing retained, to primary mortgage market conduits
Federal National Mortgage Association (Fannie Mae), Federal
Home Loan Mortgage Corporation (Freddie Mac), Federal
Home Loan Banks and third-party investors, or are securitized
and issued under the Government National Mortgage
Association (Ginnie Mae) program. The mortgage servicing
operation performs all functions related to servicing first
mortgage loans for various investors. Certain loans originated
through our joint ventures are serviced by a joint venture
partner. In November 2009, we reduced our joint venture
relationship related to our legacy PNC business and rebranded
the former National City Mortgage as PNC Mortgage.
BlackRock is the largest publicly traded investment
management firm in the world. BlackRock manages assets on
behalf of institutional and individual investors worldwide
through a variety of equity, fixed income, multi-asset class,
alternative and cash management separate accounts and funds.
In addition, BlackRock provides market risk management,
financial markets advisory and enterprise investment system
services globally to a broad base of clients. At December 31,
2009, our share of BlackRock’s earnings was approximately
23%.
Distressed Assets Portfolio includes commercial residential
development loans, cross-border leases, consumer brokered
home equity loans, retail mortgages, non-prime mortgages,
and residential construction loans. These loans require special
servicing and management oversight given current market
conditions. The majority of these loans are from acquisitions,
primarily National City.
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