PNC Bank 2015 Annual Report Download - page 153

Credit Card and Other Consumer Loan Classes
We monitor a variety of asset quality information in the management of the credit card and other consumer loan classes. Other
consumer loan classes include education, automobile, and other secured and unsecured lines and loans. Along with the trending of
delinquencies and losses for each class, FICO credit score updates are generally obtained monthly, as well as a variety of credit
bureau attributes. Loans with high FICO scores tend to have a lower likelihood of loss. Conversely, loans with low FICO scores
tend to have a higher likelihood of loss.
Table 60: Credit Card and Other Consumer Loan Classes Asset Quality Indicators
Credit Card (a) Other Consumer (b)
Dollars in millions Amount
% of Total Loans
Using FICO
Credit Metric Amount
% of Total Loans
Using FICO
Credit Metric
December 31, 2015
FICO score greater than 719 $2,936 60% $ 9,371 65%
650 to 719 1,346 28 3,534 24
620 to 649 202 4 523 4
Less than 620 227 5 604 4
No FICO score available or required (c) 151 3 501 3
Total loans using FICO credit metric 4,862 100% 14,533 100%
Consumer loans using other internal credit metrics (b) 7,213
Total loan balance $4,862 $21,746
Weighted-average updated FICO score (d) 734 744
December 31, 2014
FICO score greater than 719 $2,717 59% $ 9,156 64%
650 to 719 1,288 28 3,459 24
620 to 649 203 4 528 4
Less than 620 239 5 619 4
No FICO score available or required (c) 165 4 557 4
Total loans using FICO credit metric 4,612 100% 14,319 100%
Consumer loans using other internal credit metrics (b) 8,434
Total loan balance $4,612 $22,753
Weighted-average updated FICO score (d) 732 744
(a) At December 31, 2015, we had $34 million of credit card loans that are higher risk (i.e., loans with both updated FICO scores less than 660 and in late stage (90+ days) delinquency
status). The majority of the December 31, 2015 balance related to higher risk credit card loans was geographically distributed throughout the following areas: Ohio 17%, Pennsylvania
15%, Michigan 8%, New Jersey 8%, Florida 7%, Illinois 6%, Indiana 6%, Maryland 4% and North Carolina 4%. All other states had less than 4% individually and make up the
remainder of the balance. At December 31, 2014, we had $35 million of credit card loans that are higher risk. The majority of the December 31, 2014 balance related to higher risk
credit card loans was geographically distributed throughout the following areas: Ohio 17%, Pennsylvania 16%, Michigan 9%, Illinois 7%, New Jersey 7%, Indiana 6%, Florida 6%
and North Carolina 4%. All other states had less than 4% individually and make up the remainder of the balance.
(b) Other consumer loans for which updated FICO scores are used as an asset quality indicator include non-government guaranteed or insured education loans, automobile loans and other
secured and unsecured lines and loans. Other consumer loans for which other internal credit metrics are used as an asset quality indicator include primarily government guaranteed or
insured education loans, as well as consumer loans to high net worth individuals. Other internal credit metrics may include delinquency status, geography or other factors.
(c) Credit card loans and other consumer loans with no FICO score available or required generally refers to new accounts issued to borrowers with limited credit history, accounts for
which we cannot obtain an updated FICO score (e.g., recent profile changes), cards issued with a business name, and/or cards secured by collateral. Management proactively assesses
the risk and size of this loan portfolio and, when necessary, takes actions to mitigate the credit risk.
(d) Weighted-average updated FICO score excludes accounts with no FICO score available or required.
The PNC Financial Services Group, Inc. – Form 10-K 135