PNC Bank 2010 Annual Report Download - page 122
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Please find page 122 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.(a) Represents financial and cash flow information associated with both commercial mortgage loan transfer and servicing activities.
(b) These activities were part of an acquired brokered home equity business that PNC is no longer engaged in. See Note 23 Commitments and Guarantees for further information.
(c) For our continuing involvement with residential mortgages and home equity loan/line transfers, amount represents outstanding balance of loans transferred and serviced. For
commercial mortgages, amount represents the portion of the overall servicing portfolio in which loans have been transferred by us or third parties to VIEs. It does not include loans
serviced by us that were originated by third parties and have not been transferred to a VIE.
(d) See Note 8 Fair Value and Note 9 Goodwill and Other Intangible Assets for further information.
(e) Represents liability for our loss exposure associated with loan repurchases for breaches of representations and warranties and our commercial mortgage loss share arrangements for
our Residential Mortgage Banking, Corporate & Institutional Banking, and Distressed Assets Portfolio segments, respectively. See Note 23 Commitments and Guarantees for further
information.
(f) Represents securities held where PNC transferred to and/or serviced loans for a securitization SPE and we hold securities issued by that SPE.
(g) There were no gains or losses recognized on the transaction date for sales of residential mortgage and certain commercial mortgage loans as these loans are recognized on the balance
sheet at fair value. For transfers of commercial loans not recognized on the balance sheet at fair value, gains/losses recognized on sales of these loans were insignificant for 2010.
(h) Includes repurchases of insured loans, government guaranteed loans, and loans repurchased through the exercise of our ROAP option.
V
ARIABLE
I
NTEREST
E
NTITIES
(VIEs)
We are involved with various entities in the normal course of business that are deemed to be VIEs. We assess VIEs for
consolidation based upon the accounting policies described in Note 1 and effective January 1, 2010, we consolidated Market Street,
a credit card securitization trust, and certain Low Income Housing Tax Credit (LIHTC) investments as a result of adopting ASU
2009-17 – Consolidations (Topic 810).
The following provides a summary of VIEs, including those that we have consolidated and those in which we hold variable
interests but have not consolidated into our financial statements as of December 31, 2010 and December 31, 2009, respectively.
Consolidated VIEs – Carrying Value (a)
December 31, 2010
In millions Market Street
Credit Card
Securitization Trust
Tax Credit
Investments (b) Total
Assets
Cash and due from banks $2$2
Interest-earning deposits with banks $ 284 4 288
Investment securities $ 192 192
Loans 2,520 2,125 4,645
Allowance for loan and lease losses (183) (183)
Equity investments 1,177 1,177
Other assets 271 9 396 676
Total assets $2,983 $2,235 $1,579 $6,797
Liabilities
Other borrowed funds $2,715 $ 523 $ 116 $3,354
Accrued expenses 97988
Other liabilities 268 188 456
Total liabilities $2,983 $ 532 $ 383 $3,898
(a) Amounts represent carrying value on PNC’s Consolidated Balance Sheet.
(b) Amounts reported primarily represent LIHTC investments.
Consolidated VIEs
In millions
Aggregate
Assets
Aggregate
Liabilities
December 31, 2010
Market Street $3,584 $3,588
Credit Card Securitization Trust 2,269 1,004
Tax Credit Investments (a) 1,590 420
December 31, 2009
Tax Credit Investments (a) $1,933 $ 808
Credit Risk Transfer Transaction 860 860
(a) Amounts reported primarily represent LIHTC investments.
Aggregate assets and aggregate liabilities differ from the consolidated carrying value of assets and liabilities due to elimination of
intercompany assets and liabilities held by the consolidated VIE.
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