PNC Bank 2013 Annual Report Download - page 51

• PNC enhanced its liquidity position in light of
anticipated regulatory requirements as reflected in
higher balances of interest-earning deposits with
banks and borrowed funds.
• PNC’s well-positioned balance sheet remained core
funded with a loans to deposits ratio of 89% at
December 31, 2013.
• PNC had a strong capital position at December 31,
2013.
• The Basel I Tier 1 common capital ratio
increased to 10.5% compared with 9.6% at
December 31, 2012.
• The pro forma fully phased-in Basel III Tier 1
common capital ratio increased to an estimated
9.4% at December 31, 2013 compared with
7.5% at December 31, 2012. The ratio at
December 31, 2013 was calculated using
PNC’s estimated risk-weighted assets under the
Basel III standardized approach, while the ratio
for December 31, 2012 was calculated using
PNC’s estimated risk-weighted assets under the
Basel III advanced approaches. Our pro forma
fully phased-in Basel III Tier 1 common ratio
at December 31, 2013 calculated using PNC’s
estimated risk-weighted assets under the Basel
III advanced approaches was 9.5%. See the
Capital discussion and Table 19 in the
Consolidated Balance Sheet Review section of
this Item 7 for more detail.
Our Consolidated Income Statement and Consolidated
Balance Sheet Review sections of this Financial Review
describe in greater detail the various items that impacted our
results during 2013 and 2012 and balances at December 31,
2013 and December 31, 2012, respectively.
C APITAL AND L IQUIDITY A CTIONS
Our ability to take certain capital actions, including plans to
pay or increase common stock dividends or to repurchase
shares under current or future programs, is subject to the
results of the supervisory assessment of capital adequacy
undertaken by the Federal Reserve and our primary bank
regulators as part of the CCAR process.
In connection with the 2013 CCAR, PNC submitted its 2013
capital plan, approved by its Board of Directors, to the Federal
Reserve in January 2013. As we announced on March 14, 2013,
the Federal Reserve accepted the capital plan and did not object to
our proposed capital actions, which included a recommendation to
increase the quarterly common stock dividend in the second
quarter of 2013. In April 2013, our Board of Directors approved
an increase to PNC’s quarterly common stock dividend from 40
cents per common share to 44 cents per common share. A share
repurchase program for 2013 was not included in the capital plan
primarily as a result of PNC’s 2012 acquisition of RBC Bank
(USA) and expansion into Southeastern markets.
In connection with the 2014 CCAR, PNC submitted its 2014
capital plan, approved by its Board of Directors, to the Federal
Reserve in January 2014. PNC expects to receive the Federal
Reserve’s response (either a non-objection or objection) to the
capital plan submitted as part of the 2014 CCAR in March
2014.
For additional information concerning the CCAR process and
the factors the Federal Reserve takes into consideration in
evaluating capital plans, see Item 1 Business – Supervision
and Regulation.
See the Liquidity Risk Management portion of the Risk
Management section of this Item 7 for more detail on our
2013 capital and liquidity actions.
2012 A CQUISITION AND D IVESTITURE A CTIVITY
See Note 2 Acquisition and Divestiture Activity in the Notes
To Consolidated Financial Statements in Item 8 of this Report
for information regarding our March 2, 2012 RBC Bank
(USA) acquisition and other 2012 acquisition and divestiture
activity.
The PNC Financial Services Group, Inc. – Form 10-K 33