PNC Bank 2011 Annual Report Download - page 11

TABLE OF CONTENTS
PART I Page
Item 1 Business. 2
Item 1A Risk Factors. 11
Item 1B Unresolved Staff Comments. 23
Item 2 Properties. 23
Item 3 Legal Proceedings. 24
Item 4 Mine Safety Disclosures. 24
Executive Officers of the Registrant 24
Directors of the Registrant 25
PART II
Item 5 Market for Registrant’s Common Equity,
Related Stockholder Matters and
Issuer Purchases of Equity Securities. 25
Common Stock Performance Graph 26
Item 6 Selected Financial Data. 27
Item 7 Management’s Discussion and Analysis
of Financial Condition and Results of
Operations 29
Item 7A Quantitative and Qualitative Disclosures
About Market Risk. 101
Item 8 Financial Statements and Supplementary
Data. 101
Item 9 Changes in and Disagreements With
Accountants on Accounting and
Financial Disclosure. 212
Item 9A Controls and Procedures. 212
Item 9B Other Information. 212
PART III
Item 10 Directors, Executive Officers and
Corporate Governance. 212
Item 11 Executive Compensation. 213
Item 12 Security Ownership of Certain Beneficial
Owners and Management and Related
Stockholder Matters. 213
Item 13 Certain Relationships and Related
Transactions, and Director
Independence. 215
Item 14 Principal Accounting Fees and Services. 215
PART IV
Item 15 Exhibits, Financial Statement Schedules. 215
SIGNATURES 216
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 for earnings,
revenues, expenses, capital levels and ratios, liquidity levels,
asset levels, asset quality and other matters regarding or
affecting PNC and its future business and operations 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, our Risk Management, Critical Accounting Estimates
And Judgments, and Cautionary Statement Regarding
Forward-Looking Information sections included in Item 7, and
Note 22 Legal Proceedings and Note 23 Commitments and
Guarantees in the Notes To Consolidated Financial
Statements included in Item 8 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,
Illinois, Maryland, Indiana, Kentucky, Florida, Washington,
D.C., Delaware, Virginia, Missouri, Wisconsin and Georgia.
We also provide certain products and services internationally.
At December 31, 2011, our consolidated total assets, deposits
and total shareholders’ equity were $271.2 billion, $188.0
billion and $34.1 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.
P ENDING A CQUISITION OF RBC B ANK (USA)
On June 19, 2011, we entered into a definitive agreement with
Royal Bank of Canada and RBC USA Holdco Corporation to
acquire RBC Bank (USA), the US retail banking subsidiary of
Royal Bank of Canada, for $3.45 billion. The purchase price is
subject to certain adjustments, including adjustments based on
the closing date tangible net asset value of RBC Bank (USA),
as defined in the definitive agreement. RBC Bank (USA) has
approximately $25 billion in “proforma” assets as reflected in
the definitive agreement to be included in the transaction and
more than 400 branches in North Carolina, Florida, Alabama,
Georgia, Virginia and South Carolina. The transaction is
expected to close in March 2012, subject to remaining
customary closing conditions.
F LAGSTAR B RANCH A CQUISITION
Effective December 9, 2011, PNC acquired 27 branches in the
northern metropolitan Atlanta, Georgia area from Flagstar
Bank, FSB, a subsidiary of Flagstar Bancorp, Inc. We
assumed approximately $210 million of deposits associated
with these branches. No loans were acquired in the
transaction.
B ANK A TLANTIC B RANCH A CQUISITION
Effective June 6, 2011, PNC acquired 19 branches in the
greater Tampa, Florida area from BankAtlantic, a subsidiary
of BankAtlantic Bancorp, Inc. We assumed approximately
$324 million of deposits associated with these branches. No
loans were acquired in the transaction.
R
EVIEW OF B USINESS S EGMENTS
In addition to the following information relating to our lines of
business, we incorporate the information under the captions
2The PNC Financial Services Group, Inc. – Form 10-K