PNC Bank 2014 Annual Report Download - page 20

Corporate & Institutional Banking’s strategy is to be the
leading relationship-based provider of traditional banking
products and services to its customers through the economic
cycles. We aim to expand our market share and drive higher
returns by growing and deepening customer relationships
while maintaining prudent risk and expense management.
Asset Management Group includes personal wealth
management for high net worth and ultra high net worth
clients and institutional asset management. Wealth
management products and services include investment and
retirement planning, customized investment management,
private banking, tailored credit solutions, and trust
management and administration for individuals and their
families. Hawthorn provides multi-generational family
planning including wealth strategy, investment management,
private banking, tax and estate planning guidance,
performance reporting and personal administration services to
ultra high net worth families. Institutional asset management
provides investment management, custody administration and
retirement administration services. Institutional clients include
corporations, unions, municipalities, non-profits, foundations
and endowments, primarily located in our geographic
footprint.
Asset Management Group is focused on being one of the
premier bank-held individual and institutional asset managers
in each of the markets it serves. The business seeks to deliver
high quality banking advice and trust and investment
management services to our high net worth, ultra high net
worth and institutional client sectors through a broad array of
products and services. Asset Management Group’s primary
goals are to service our clients, grow the business and deliver
solid financial performance with prudent risk and expense
management.
Residential Mortgage Banking directly originates first lien
residential mortgage loans on a nationwide basis with a
significant presence within the retail banking footprint.
Mortgage loans represent loans collateralized by one-to-four-
family residential real estate. These loans are typically
underwritten to government agency and/or third-party
standards, and either sold, servicing retained, or held on
PNC’s balance sheet. Loan sales are primarily to secondary
mortgage conduits of Federal National Mortgage Association
(FNMA), Federal Home Loan Mortgage Corporation
(FHLMC), Federal Home Loan Banks and third-party
investors, or are securitized and issued under the Government
National Mortgage Association (GNMA) program, as
described in more detail in Note 2 Loan Sale and Servicing
Activities and Variable Interest Entities in Item 8 of this
Report and included here by reference. The mortgage
servicing operation performs all functions related to servicing
mortgage loans, primarily those in first lien position, for
various investors and for loans owned by PNC.
Residential Mortgage Banking is focused on adding value to
the PNC franchise by building stronger customer
relationships, providing quality investment loans and
mortgage servicing opportunities, and delivering acceptable
returns consistent with our desired risk appetite. A strategic
priority for PNC is to build a stronger residential mortgage
business offering seamless delivery to customers while
improving efficiencies. Our national distribution capability
provides volume that drives economies of scale, risk
dispersion and cost-effective extension of the retail banking
footprint for cross-selling opportunities.
BlackRock, in which we hold an equity investment, is a
leading publicly traded investment management firm
providing a broad range of investment and risk management
services to institutional and retail clients worldwide. Using a
diverse platform of active and index investment strategies
across asset classes, BlackRock develops investment
outcomes and asset allocation solutions for clients. Product
offerings include single- and multi-asset class portfolios
investing in equities, fixed income, alternatives and money
market instruments. BlackRock also offers an investment and
risk management technology platform, risk analytics and
advisory services and solutions to a broad base of institutional
investors. We hold our equity investment in BlackRock as a
key component of our diversified revenue strategy. BlackRock
is a publicly traded company, and additional information
regarding its business is available in its filings with the
Securities and Exchange Commission (SEC).
Non-Strategic Assets Portfolio includes a consumer portfolio
of mainly residential mortgage and brokered home equity
loans and lines of credit and a small commercial/commercial
real estate loan and lease portfolio. We obtained a significant
portion of these non-strategic assets through acquisitions of
other companies.
Subsidiaries
Our corporate legal structure at December 31, 2014 consisted
of one domestic subsidiary bank, including its subsidiaries,
and approximately 80 active non-bank subsidiaries, in
addition to various affordable housing investments. Our bank
subsidiary is PNC Bank, National Association (PNC Bank), a
national bank headquartered in Pittsburgh, Pennsylvania. For
additional information on our subsidiaries, see Exhibit 21 to
this Report.
2The PNC Financial Services Group, Inc. – Form 10-K