PNC Bank 2012 Annual Report Download - page 112

Table 41: Bank-Owned Consumer Real Estate Related Loan Modifications Re-Default by Vintage (a) (b)
Six Months Nine Months Twelve Months Fifteen Months
December 31, 2012
Dollars in millions
Number of
Accounts
Re-defaulted
%of
Vintage
Re-defaulted
Number of
Accounts
Re-defaulted
%of
Vintage
Re-defaulted
Number of
Accounts
Re-defaulted
%of
Vintage
Re-defaulted
Number of
Accounts
Re-defaulted
%of
Vintage
Re-defaulted
Unpaid
Principal
Balance (c)
Permanent Modifications
Home Equity
Second Quarter 2012 36 2.0% $ 2,340
First Quarter 2012 24 2.2 42 3.8% 2,519
Fourth Quarter 2011 9 2.0 18 3.9 25 5.4% 2,149
Third Quarter 2011 23 4.0 31 5.4 37 6.5 49 8.6% 3,514
Second Quarter 2011 20 5.4 29 7.8 38 10.2 42 11.3 2,588
Residential Mortgages
Second Quarter 2012 192 18.7 32,842
First Quarter 2012 181 17.7 238 23.2 38,753
Fourth Quarter 2011 206 21.8 281 29.7 318 33.6 53,211
Third Quarter 2011 260 21.6 350 29.1 442 36.7 471 39.1 75,420
Second Quarter 2011 338 25.5 424 31.9 469 35.3 533 40.1 83,804
Non-Prime Mortgages
Second Quarter 2012 39 20.1 5,014
First Quarter 2012 46 21.3 57 26.4 8,344
Fourth Quarter 2011 38 14.7 59 22.9 81 31.4 11,390
Third Quarter 2011 85 23.0 103 27.8 133 35.9 144 38.9 19,836
Second Quarter 2011 105 17.8 143 24.2 163 27.6 189 32.0 28,585
Residential Construction
Second Quarter 2012 4 3.0 –
First Quarter 2012 2 1.6 5 3.9 1,522
Fourth Quarter 2011 5 5.6 7 7.8 13 14.4 4,598
Third Quarter 2011 2 1.8 2 1.8 6 5.5 14 12.7 2,644
Second Quarter 2011 4 3.9 4 3.9 3 2.9 5 4.9 1,915
Temporary Modifications
Home Equity
Second Quarter 2012 33 11.0% $ 3,384
First Quarter 2012 33 7.1 46 9.9% 3,388
Fourth Quarter 2011 26 5.2 39 7.8 53 10.6% 4,688
Third Quarter 2011 42 9.8 50 11.7 65 15.2 76 17.8% 8,158
Second Quarter 2011 63 10.7 92 15.6 113 19.2 135 22.9 14,077
(a) An account is considered in re-default if it is 60 days or more delinquent after modification. The data in this table represents loan modifications completed during the quarters ending
June 30, 2011 through June 30, 2012 and represents a vintage look at all quarterly accounts and the number of those modified accounts (for each quarterly vintage) 60 days or more
delinquent at six, nine, twelve, and fifteen months after modification. Account totals include active and inactive accounts that were delinquent when they achieved inactive status.
(b) Vintage refers to the quarter in which the modification occurred.
(c) Reflects December 31, 2012 unpaid principal balances of the re-defaulted accounts for the Second Quarter 2012 Vintage at Six Months, for the First Quarter 2012 Vintage at Nine
Months, for the Fourth Quarter 2011 Vintage at Twelve Months, and for the Third and Second Quarter 2011 at Fifteen Months.
In addition to temporary loan modifications, we may make
available to a borrower a payment plan or a HAMP trial
payment period. Under a payment plan or a HAMP trial
payment period, there is no change to the loan’s contractual
terms so the borrower remains legally responsible for payment
of the loan under its original terms. A payment plan involves
the borrower paying the past due amounts over a short period
of time, generally three months, in addition to the contractual
payment amounts over that period upon which a borrower is
brought current. Due to the short term nature of the payment
plan there is a minimal impact to the ALLL.
Under a HAMP trial payment period, we establish an alternate
payment, generally at an amount less than the contractual
payment amount, for the borrower during this short time
period. This allows a borrower to demonstrate successful
payment performance before permanently restructuring the
loan into a HAMP modification. Subsequent to successful
The PNC Financial Services Group, Inc. – Form 10-K 93