PNC Bank 2011 Annual Report Download - page 63

markets for growth, and focus on the retention and growth of
balances for relationship customers.
In 2011, average total deposits of $122.5 billion decreased
$3.1 billion, or 2%, compared with 2010.
• Average demand deposits increased $3.4 billion, or
9%, over 2010. The increase was primarily driven by
customer growth and customer preferences for
liquidity.
• Average money market deposits increased $877
million, or 2%, from 2010. The increase was
primarily due to core money market growth as
customers generally preferred more liquid deposits in
a low rate environment.
• Average savings deposits increased $1.2 billion, or
17%, over 2010. The increase was attributable to net
customer growth and new product offerings.
• Average consumer certificates of deposit decreased
$8.5 billion or 21% from 2010. The decline is
expected to continue through 2012 due to the
continued run-off of higher rate certificates of
deposit.
Currently, our primary focus is on a relationship-based
lending strategy that targets specific customer sectors
including mass and mass affluent consumers, small businesses
and auto dealerships. In 2011, average total loans were $58.3
billion, a decrease of $429 million, or 1%, over 2010.
• Average indirect auto loans increased $991 million,
or 47%, over 2010. The increase was due to the
expansion of our indirect sales force and product
introduction to acquired markets, as well as overall
increases in auto sales.
• Average education loans grew $606 million, or 7%,
compared with 2010, primarily due to portfolio
purchases in December 2010, July 2011, and
November 2011 of approximately $450 million, $445
million, and $560 million, respectively.
• Average auto dealer floor plan loans grew $114
million, or 9%, compared with 2010, primarily
resulting from additional dealer relationships and
higher line utilization.
• Average credit card balances decreased $200 million,
or 5%, over 2010. The decrease was primarily the
result of fewer active accounts generating balances
coupled with increased paydowns on existing
accounts.
• Average commercial and commercial real estate
loans declined $610 million, or 5%, compared with
2010. The decline was primarily due to refinancings,
paydowns, and charge-offs outpacing loan demand.
• Average home equity loans declined $576 million, or
2%, compared with 2010. Home equity loan demand
remained soft in the current economic climate. The
decline is driven by loan demand being outpaced by
paydowns, refinancings, and charge-offs. Retail
Banking’s home equity loan portfolio is relationship
based, with 96% of the portfolio attributable to
borrowers in our primary geographic footprint. The
nonperforming assets and charge-offs that we have
experienced are within our expectations given current
market conditions.
• Average indirect other and residential mortgages are
primarily run-off portfolios and declined $397
million and $419 million, respectively, compared
with 2010. The indirect other portfolio is comprised
of marine, RV, and other indirect loan products.
54 The PNC Financial Services Group, Inc. – Form 10-K