PNC Bank 2014 Annual Report Download - page 49

At or for the year ended December 31
Dollars in millions, except as noted 2014 (a) 2013 (a) 2012 (a) 2011 2010
B ALANCE S HEET H IGHLIGHTS
Assets (b) (c) $345,072 $320,192 $305,029 $271,141 $264,230
Loans (c) (d) 204,817 195,613 185,856 159,014 150,595
Allowance for loan and lease losses (c) 3,331 3,609 4,036 4,347 4,887
Interest-earning deposits with banks (c) (e) 31,779 12,135 3,984 1,169 1,610
Investment securities (c) 55,823 60,294 61,406 60,634 64,262
Loans held for sale (d) 2,262 2,255 3,693 2,936 3,492
Goodwill and other intangible assets 10,947 11,290 10,869 10,144 10,753
Equity investments (b) (c) (f) 10,728 10,560 10,799 10,070 9,166
Noninterest-bearing deposits 73,479 70,306 69,980 59,048 50,019
Interest-bearing deposits 158,755 150,625 143,162 128,918 133,371
Total deposits 232,234 220,931 213,142 187,966 183,390
Transaction deposits (g) 198,267 186,391 176,705 147,637 134,654
Borrowed funds (c) (d) (h) 56,768 46,105 40,907 36,704 39,488
Total shareholders’ equity (b) 44,551 42,334 38,948 34,010 30,206
Common shareholders’ equity (b) 40,605 38,392 35,358 32,374 29,560
C
LIENT I NVESTMENT A SSETS (billions)
Discretionary client assets under management $ 135 $ 127 $ 112 $ 107 $ 108
Nondiscretionary client assets under management 128 120 112 103 104
Total client assets under administration 263 247 224 210 212
Brokerage account client assets 43 41 38 34 34
Total $ 306 $ 288 $ 262 $ 244 $ 246
S
ELECTED R ATIOS
Net interest margin (i) 3.08% 3.57% 3.94% 3.92% 4.14%
Noninterest income to total revenue 45 43 38 39 39
Efficiency (b) 62 60 68 63 56
Return on
Average common shareholders’ equity (b) 9.91 10.85 8.29 9.56 10.87
Average assets (b) 1.28 1.38 1.02 1.16 1.28
Loans to deposits 88 89 87 85 82
Dividend payout (b) 25.3 23.1 29.1 20.2 6.8
Transitional Basel III common equity Tier 1 capital ratio (j) (k) 10.9 N/A N/A N/A N/A
Transitional Basel III Tier 1 risk-based capital ratio (j) (k) 12.6 N/A N/A N/A N/A
Pro forma fully phased-in Basel III common equity Tier 1 capital ratio (k) (l) (m) 10.0 9.4 7.5 N/A N/A
Basel I Tier 1 common capital ratio (m) N/A 10.5 9.6 10.3 9.8
Basel I Tier 1 risk-based capital ratio (m) N/A 12.4 11.6 12.6 12.1
Common shareholders’ equity to total assets (b) 11.8 12.0 11.6 11.9 11.2
Average common shareholders’ equity to average assets (b) 12.1 11.9 11.5 11.9 10.4
S
ELECTED S TATISTICS
Employees 53,587 54,433 56,285 51,891 50,769
Retail Banking branches 2,697 2,714 2,881 2,511 2,470
ATMs 8,605 7,445 7,282 6,806 6,673
Residential mortgage servicing portfolio – Serviced for Third Parties (in billions) $ 108 $ 114 $ 119 $ 118 $ 125
Commercial mortgage servicing portfolio – Serviced for PNC and Others (in billions) $ 336 $ 308 $ 282 $ 267 $ 266
(a) Includes the impact of RBC Bank (USA), which we acquired on March 2, 2012.
(b) Amounts for prior periods have been updated to reflect the first quarter 2014 adoption of Accounting Standards Update (ASU) 2014-01 related to investments in low income housing
tax credits.
(c) Amounts include consolidated variable interest entities. See Consolidated Balance Sheet in Item 8 of this Report for additional information.
(d) Amounts include assets and liabilities for which we have elected the fair value option. See Consolidated Balance Sheet in Item 8 of this Report for additional information.
(e) Amounts include balances held with the Federal Reserve Bank of Cleveland of $31.4 billion, $11.7 billion, $3.5 billion, $.4 billion and $1.0 billion as of December 31, 2014, 2013,
2012, 2011 and 2010, respectively.
(f) Amounts include our equity interest in BlackRock.
(g) Represents the sum of interest-bearing money market deposits, interest-bearing demand deposits, and noninterest-bearing deposits.
(h) Includes long-term borrowings of $41.5 billion, $27.6 billion, $19.3 billion, $20.9 billion and $24.8 billion for 2014, 2013, 2012, 2011 and 2010, respectively. Borrowings which
mature more than one year after December 31, 2014 are considered to be long-term.
(i) Calculated as taxable-equivalent net interest income divided by average earning assets. The interest income earned on certain earning assets is completely or partially exempt from
federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of net interest margins for
all earning assets, we use net interest income on a taxable-equivalent basis in calculating net interest margin by increasing the interest income earned on tax-exempt assets to make it
fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under accounting principles generally accepted in the United States of America
(GAAP) on the Consolidated Income Statement. The taxable-equivalent adjustments to net interest income for the years 2014, 2013, 2012, 2011 and 2010 were $189 million, $168
million, $144 million, $104 million and $81 million, respectively.
(j) Calculated using the regulatory capital methodology applicable to PNC during 2014.
(k) See capital ratios discussion in the Supervision and Regulation section of Item 1 and in the Consolidated Balance Sheet Review section in Item 7 of this Report for additional
discussion on these capital ratios.
(l) Pro forma ratios as of December 31, 2014 and December 31, 2013 were calculated under the standardized approach and the pro forma ratio as of December 31, 2012 was calculated
under the advanced approaches. The prior period ratios have not been updated to reflect the first quarter 2014 adoption of ASU 2014-01 related to investments in low income housing
tax credits.
(m) See additional information on the pro forma ratios and Basel I ratios in the Statistical Information (Unaudited) section in Item 8 of this Report.
The PNC Financial Services Group, Inc. – Form 10-K 31