PNC Bank 2014 Annual Report Download - page 215

Our Series L preferred stock was issued in connection with the
National City transaction in exchange for National City’s
Fixed-to-Floating Rate Non-Cumulative Preferred Stock,
Series F. Dividends on the Series L preferred stock were
payable if and when declared each 1st of February, May,
August and November. Dividends were paid at a rate of
9.875% prior to February 1, 2013 and at a rate of three-month
LIBOR plus 633 basis points beginning February 1, 2013. On
April 19, 2013, PNC redeemed all 6,000,000 depositary shares
representing interests in PNC’s Series L preferred stock and
all 1,500 shares of Series L preferred stock underlying such
depositary shares, resulting in a net outflow of $150 million.
We have authorized but unissued Series H and Series I
preferred stock. As described in Note 12 Capital Securities of
a Subsidiary Trust and Perpetual Trust Securities, the PNC
Preferred Funding Trust II securities are automatically
exchangeable into shares of PNC Series I preferred stock
under certain conditions relating to the capitalization or the
financial condition of PNC Bank and upon the direction of the
Office of the Comptroller of the Currency. The Series A
preferred stock of PNC REIT Corp. is also automatically
exchangeable under similar conditions into shares of PNC
Series H preferred stock. On March 15, 2013, we redeemed all
$375 million of the PNC Preferred Funding Trust III securities
that had been exchangeable under certain conditions into PNC
Series J preferred stock.
Warrants
We have outstanding 16,885,192 warrants, each to purchase
one share of PNC common stock at an exercise price of
$67.33 per share. These warrants were sold by the U.S.
Treasury in a secondary public offering that closed on May 5,
2010 after the U.S. Treasury exchanged its TARP Warrant
(issued on December 31, 2008 under the TARP Capital
Purchase Program) for 16,885,192 warrants. These warrants
expire December 31, 2018.
Other Shareholders’ Equity Matters
We have a dividend reinvestment and stock purchase plan.
Holders of preferred stock and PNC common stock may
participate in the plan, which provides that additional shares
of common stock may be purchased at market value with
reinvested dividends and voluntary cash payments. Common
shares issued pursuant to this plan were: 293,552 shares in
2014, 368,982 shares in 2013 and 422,642 shares in 2012.
At December 31, 2014, we had reserved approximately
99 million common shares to be issued in connection with
certain stock plans.
Effective October 4, 2007, our Board of Directors approved a
stock repurchase program to purchase up to 25 million shares
of PNC common stock on the open market or in privately
negotiated transactions. A maximum of 8.086 million shares
remained available for repurchase under this program at
December 31, 2014. This program will remain in effect until
fully utilized or until modified, superseded or terminated. We
repurchased 13.5 million shares in 2014 and 3.2 million shares
in 2012. We did not repurchase any shares during 2013 under
this program.
The PNC Financial Services Group, Inc. – Form 10-K 197