PNC Bank 2010 Annual Report Download - page 136
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Please find page 136 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.In millions
Amortized Unrealized Fair
Cost (a) Gains Losses Value
December 31, 2008
S
ECURITIES
A
VAILABLE
F
OR
S
ALE
Debt securities
US Treasury and government agencies $ 738 $ 1 $ 739
Residential mortgage-backed
Agency 22,744 371 $ (9) 23,106
Non-agency 13,205 (4,374) 8,831
Commercial mortgage-backed (non-agency) 4,305 (859) 3,446
Asset-backed 2,069 4 (446) 1,627
State and municipal 1,326 13 (76) 1,263
Other debt 563 11 (15) 559
Total debt securities 44,950 400 (5,779) 39,571
Corporate stocks and other 575 (4) 571
Total securities available for sale $45,525 $400 $(5,783) $40,142
S
ECURITIES
H
ELD
T
O
M
ATURITY
Debt securities
Commercial mortgage-backed (non-agency) $ 1,945 $ 10 $ (59) $ 1,896
Asset-backed 1,376 7 (25) 1,358
Other debt 10 10
Total securities held to maturity $ 3,331 $ 17 $ (84) $ 3,264
(a) The amortized cost for debt securities for which an OTTI was recorded prior to January 1, 2009 was adjusted for the $110 million pretax cumulative effect adjustment recorded under
new GAAP that we adopted as of that date.
The fair value of investment securities is impacted by interest rates, credit spreads, market volatility and liquidity conditions. Net
unrealized gains and losses in the securities available for sale portfolio are included in shareholders’ equity as accumulated other
comprehensive income or loss, net of tax, unless credit-related.
In March 2010, we transferred $2.2 billion of available for sale commercial mortgage-backed non-agency securities to the held to
maturity portfolio. The reclassification was made at fair value at the date of transfer. Net pretax unrealized gains in accumulated
other comprehensive loss totaled $92 million at the transfer date and will be accreted over the remaining life of the related
securities as an adjustment of yield in a manner consistent with the amortization of the premium on the same transferred securities,
resulting in no impact on net income.
The gross unrealized loss on debt securities held to maturity was $5 million at December 31, 2010 and $13 million at
December 31, 2009 with $675 million and $388 million of positions in a continuous loss position for less than 12 months at
December 31, 2010 and 2009, respectively.
The following table presents gross unrealized loss and fair value of securities available for sale at December 31, 2010 and
December 31, 2009. The securities are segregated between investments that have been in a continuous unrealized loss position for
less than twelve months and twelve months or more based on the point in time the fair value declined below the amortized cost
basis. The table includes debt securities where a portion of OTTI has been recognized in accumulated other comprehensive loss.
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