PNC Bank 2010 Annual Report Download - page 81
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Please find page 81 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.-
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nonperforming loans included TDRs of $784 million at
December 31, 2010 and $440 million at December 31, 2009.
Purchased impaired loans are excluded from TDRs.
TDRs returned to performing (accrual) status totaled
$543 million at December 31, 2010 and are excluded from
nonperforming loans. These loans have demonstrated a period
of at least six months of performance under the modified
terms. Approximately $25 million of TDRs previously
returned to performing status are no longer current under their
modified terms and are now reported as nonperforming.
In addition, credit cards and certain small business and
consumer credit agreements whose terms have been modified
primarily through interest rate reductions totaling $331 million
at December 31, 2010 are TDRs. However, these loans are
excluded from nonperforming loans since our policy is to
exempt these loans from being placed on nonaccrual status as
permitted by regulatory guidance. As such, generally under
modified terms, these loans are directly charged off in the
period that they become 120 to 180 days past due. At
December 31, 2010 and 2009, remaining commitments to lend
additional funds to debtors whose terms have been modified in
a commercial or consumer TDR were immaterial.
Modifications of terms for commercial loans are based on
individual facts and circumstances. Commercial loan
modifications may involve reduction of the interest rate,
extension of the term of the loan and/or forgiveness of
principal. Due to the nature of commercial loan relationships,
PNC had not utilized modification programs for commercial
loans prior to 2010. Beginning in 2010, PNC established
select commercial loan modification programs for small
business loans under $250,000, Small Business
Administration loans, and investment real estate loans. As of
December 31, 2010, approximately $90 million in unpaid
principal balance had been modified.
Loan Delinquencies
We regularly monitor the level of loan delinquencies and
believe these levels to be an indicator of loan portfolio credit
quality. Measurement of delinquency and past due status are
based on the contractual terms of each loan. Loans that are
30 days or more past due in terms of payment are considered
delinquent. Loan delinquencies exclude loans held for sale,
purchase impaired loans and loans that are government
insured/guaranteed.
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