PNC Bank 2010 Annual Report Download - page 10
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Please find page 10 of the 2010 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.TABLE OF CONTENTS
PART I Page
Item 1 Business. 2
Item 1A Risk Factors. 11
Item 1B Unresolved Staff Comments. 19
Item 2 Properties. 19
Item 3 Legal Proceedings. 19
Item 4 Reserved. 19
Executive Officers of the Registrant 19
Directors of the Registrant 20
PART II
Item 5 Market for Registrant’s Common Equity,
Related Stockholder Matters and Issuer
Purchases of Equity Securities. 20
Common Stock Performance Graph 22
Item 6 Selected Financial Data. 23
Item 7 Management’s Discussion and Analysis
of Financial Condition and Results of
Operations 25
Item 7A Quantitative and Qualitative Disclosures
About Market Risk. 93
Item 8 Financial Statements and Supplementary
Data. 94
Item 9 Changes in and Disagreements With
Accountants on Accounting and
Financial Disclosure. 192
Item 9A Controls and Procedures. 192
Item 9B Other Information. 193
PART III
Item 10 Directors, Executive Officers and
Corporate Governance. 193
Item 11 Executive Compensation. 193
Item 12 Security Ownership of Certain Beneficial
Owners and Management and Related
Stockholder Matters. 193
Item 13 Certain Relationships and Related
Transactions, and Director
Independence. 194
Item 14 Principal Accounting Fees and Services. 194
PART IV
Item 15 Exhibits, Financial Statement Schedules. 194
SIGNATURES 195
EXHIBIT INDEX E-1
PART I
Forward-Looking Statements: From time to time, The PNC
Financial Services Group, Inc. (PNC or the Corporation) has
made and may continue to make written or oral forward-
looking statements regarding our outlook or expectations for
earnings, revenues, expenses, capital levels, liquidity levels,
asset quality or other future financial or business
performance, strategies or expectations, or the impact of
legal, regulatory or supervisory matters on our business
operations or performance. This Annual Report on Form 10-K
(the Report or Form 10-K) also includes forward-looking
statements. With respect to all such forward-looking
statements, you should review our Risk Factors discussion in
Item 1A and our Risk Management, Critical Accounting
Policies and Judgments, and Cautionary Statement Regarding
Forward-Looking Information sections included in Item 7 of
this Report.
ITEM
1–
BUSINESS
B
USINESS
O
VERVIEW
Headquartered in Pittsburgh,
Pennsylvania, we are one of the largest diversified financial
services companies in the United States. We have businesses
engaged in retail banking, corporate and institutional banking,
asset management, and residential mortgage banking,
providing many of our products and services nationally and
others in our primary geographic markets located in
Pennsylvania, Ohio, New Jersey, Michigan, Maryland,
Illinois, Indiana, Kentucky, Florida, Virginia, Missouri,
Delaware, Washington, D.C., and Wisconsin. We also provide
certain products and services internationally. At December 31,
2010, our consolidated total assets, deposits and total
shareholders’ equity were $264.3 billion, $183.4 billion and
$30.2 billion, respectively.
We were incorporated under the laws of the Commonwealth
of Pennsylvania in 1983 with the consolidation of Pittsburgh
National Corporation and Provident National Corporation.
Since 1983, we have diversified our geographical presence,
business mix and product capabilities through internal growth,
strategic bank and non-bank acquisitions and equity
investments, and the formation of various non-banking
subsidiaries.
S
ALE OF
PNC G
LOBAL
I
NVESTMENT
S
ERVICING
On July 1, 2010, we sold PNC Global Investment Servicing
Inc. (GIS), a leading provider of processing, technology and
business intelligence services to asset managers, broker-
dealers and financial advisors worldwide, for $2.3 billion in
cash pursuant to a definitive agreement entered into on
February 2, 2010. The pretax gain recorded in the third quarter
of 2010 related to this sale was $639 million, or $328 million
after taxes.
Results of operations of GIS through June 30, 2010 and the
related after-tax gain on sale in the third quarter of 2010 are
presented as income from discontinued operations, net of
income taxes, on our Consolidated Income Statement for the
periods presented in this Report. Once we entered into the
sales agreement, GIS was no longer a reportable business
segment. Further information regarding the GIS sale is
included in Note 2 Divestiture in Item 8 of this Report and
here by reference.
A
CQUISITION OF
N
ATIONAL
C
ITY
C
ORPORATION
On December 31, 2008, we acquired National City
Corporation (National City) for approximately $6.1 billion.
The total consideration included approximately $5.6 billion of
PNC common stock, $150 million of preferred stock, and cash
of $379 million paid to warrant holders by National City.
Following the closing, PNC received $7.6 billion from the
United States Department of the Treasury (US Treasury)
under the Emergency Economic Stabilization Act of 2008
(EESA) in exchange for the issuance of preferred stock and a
common stock warrant (the TARP Preferred Stock and TARP
2