PNC Bank 2013 Annual Report Download - page 106

had $18.8 billion pledged as collateral for borrowings, trust,
and other commitments. The level of liquid assets fluctuates
over time based on many factors, including market conditions,
loan and deposit growth and balance sheet management
activities.
In addition to the customer deposit base, which has
historically provided the single largest source of relatively
stable and low-cost funding, the bank also obtains liquidity
through the issuance of traditional forms of funding including
long-term debt (senior notes and subordinated debt and FHLB
advances) and short-term borrowings (Federal funds
purchased, securities sold under repurchase agreements,
commercial paper issuances and other short-term borrowings).
In 2004, PNC Bank, N.A. was authorized by its Board to offer
up to $20 billion in senior and subordinated unsecured debt
obligations with maturities of more than nine months.
Through December 31, 2013, PNC Bank, N.A. had issued
$18.9 billion of debt under this program including the
following during 2013:
• $750 million of fixed rate senior notes with a
maturity date of January 28, 2016. Interest is payable
semi-annually, at a fixed rate of .80%, on January 28
and July 28 of each year, beginning on July 28, 2013,
• $250 million of floating rate senior notes with a
maturity date of January 28, 2016. Interest is payable
at the 3-month LIBOR rate, reset quarterly, plus a
spread of .31%, on January 28, April 28, July 28, and
October 28 of each year, beginning on April 28,
2013,
• $750 million of subordinated notes with a maturity
date of January 30, 2023. Interest is payable semi-
annually, at a fixed rate of 2.950%, on January 30
and July 30 of each year, beginning on July 30, 2013,
• $1.4 billion of senior extendible floating rate bank
notes issued to an affiliate with an initial maturity
date of April 14, 2014, subject to the holder’s
monthly option to extend, and a final maturity date of
January 14, 2015. Interest is payable at the 3-month
LIBOR rate, reset quarterly, plus a spread of .225%,
which spread is subject to four potential one basis
point increases in the event of certain extensions of
maturity by the holder. Interest is payable on
March 14, June 14, September 14, and December 14
of each year, beginning on June 14, 2013,
• $645 million of floating rate senior notes with a
maturity date of April 29, 2016. Interest is payable at
the 3-month LIBOR rate, reset quarterly, plus a
spread of .32% on January 29, April 29, July 29 and
October 29 of each year, beginning on July 29, 2013,
• $800 million of senior extendible floating rate bank
notes with an initial maturity date of July 18, 2014,
subject to the holder’s monthly option to extend, and
a final maturity date of June 18, 2015. Interest is
payable at the 3-month LIBOR rate, reset quarterly,
plus a spread of .225%, which spread is subject to
four potential one basis point increases in the event
of certain extensions of maturity by the holder.
Interest is payable on March 20, June 20,
September 20 and December 20 of each year,
beginning on September 20, 2013,
• $750 million of subordinated notes with a maturity
date of July 25, 2023. Interest is payable semi-
annually, at a fixed rate of 3.80% on January 25 and
July 25 of each year, beginning on January 25, 2014,
• $750 million of fixed rate senior notes with a maturity
date of October 3, 2016. Interest is payable semi-
annually, at a fixed rate of 1.30% on April 3 and
October 3 of each year, beginning on April 3, 2014,
• $500 million of senior extendible floating rate bank
notes issued to an affiliate with an initial maturity
date of October 12, 2014, subject to the holder’s
monthly option to extend, and a final maturity date of
September 12, 2015. Interest is payable at the 3-
month LIBOR rate, reset quarterly, plus a spread of
.225%, which spread is subject to four potential one
basis point increases in the event of certain
extensions of maturity by the holder. Interest is
payable on March 12, June 12, September 12 and
December 12 of each year, beginning on
December 12, 2013,
• $750 million of fixed rate senior notes with a
maturity date of November 1, 2016. Interest is
payable semi-annually, at a fixed rate of 1.15% on
May 1 and November 1 of each year, beginning on
May 1, 2014,
• $500 million of subordinated notes with a maturity
date of November 1, 2025. Interest is payable semi-
annually, at a fixed rate of 4.20% on May 1 and
November 1 of each year, beginning on May 1, 2014,
and
• $600 million of senior extendible floating rate bank
notes issued to an affiliate with an initial maturity
date of December 7, 2014, subject to the holder’s
monthly option to extend, and a final maturity date of
November 7, 2015. Interest is payable at the 3-month
LIBOR rate, reset quarterly, plus a spread of .330%,
which spread is subject to four potential one basis
point increases in the event of certain extensions of
maturity by the holder. Interest is payable on
February 7, May 7, August 7 and November 7 of
each year, beginning on February 7, 2014.
Total senior and subordinated debt of PNC Bank, N.A.
increased to $14.6 billion at December 31, 2013 from $9.3
billion at December 31, 2012 primarily due to $8.4 billion in
new borrowing less $2.9 billion in calls and maturities.
On January 16, 2014, PNC Bank, N.A. established a new bank
note program under which it may from time to time offer up to
$25 billion aggregate principal amount at any one time
outstanding of its unsecured senior and subordinated notes due
more than nine months from their date of issue (in the case of
88 The PNC Financial Services Group, Inc. – Form 10-K