PNC Bank 2015 Annual Report Download - page 157

Impaired Loans
Impaired loans include commercial nonperforming loans and consumer and commercial TDRs, regardless of nonperforming status.
TDRs that were previously recorded at amortized cost and are now classified and accounted for as held for sale are also included.
Excluded from impaired loans are nonperforming leases, loans accounted for as held for sale other than the TDRs described in the
preceding sentence, loans accounted for under the fair value option, smaller balance homogeneous type loans and purchased
impaired loans. See Note 4 Purchased Loans for additional information. Nonperforming equipment lease financing loans of $7
million and $2 million at December 31, 2015 and 2014, respectively, are excluded from impaired loans pursuant to authoritative
lease accounting guidance. We did not recognize any interest income on impaired loans that have not returned to performing status,
while they were impaired during the years ended December 31, 2015 and 2014. The following table provides further detail on
impaired loans individually evaluated for impairment and the associated ALLL. Certain commercial and consumer impaired loans
do not have a related ALLL as the valuation of these impaired loans exceeded the recorded investment.
Table 64: Impaired Loans
In millions
Unpaid
Principal
Balance
Recorded
Investment
Associated
Allowance (a)
Average
Recorded
Investment (b)
December 31, 2015
Impaired loans with an associated allowance
Commercial $ 442 $ 337 $ 84 $ 306
Commercial real estate 254 130 35 197
Home equity 978 909 216 965
Residential real estate 272 264 35 359
Credit card 108 108 24 118
Other consumer 31 26 1 32
Total impaired loans with an associated allowance $2,085 $1,774 $395 $1,977
Impaired loans without an associated allowance
Commercial $ 201 $ 118 $ 87
Commercial real estate 206 158 168
Home equity 464 206 158
Residential real estate 512 396 346
Other consumer 24 8 8
Total impaired loans without an associated allowance $1,407 $ 886 $ 767
Total impaired loans $3,492 $2,660 $395 $2,744
December 31, 2014
Impaired loans with an associated allowance
Commercial $ 432 $ 318 $ 74 $ 360
Commercial real estate 418 262 65 283
Home equity 1,021 984 215 986
Residential real estate 397 420 75 422
Credit card 130 130 32 147
Other consumer 64 47 2 51
Total impaired loans with an associated allowance $2,462 $2,161 $463 $2,249
Impaired loans without an associated allowance
Commercial $ 106 $ 84 $ 133
Commercial real estate 249 187 276
Home equity 403 145 134
Residential real estate 344 315 365
Total impaired loans without an associated allowance $1,102 $ 731 $ 908
Total impaired loans $3,564 $2,892 $463 $3,157
(a) Associated allowance amounts include $.3 billion and $.4 billion for TDRs at December 31, 2015 and December 31, 2014, respectively.
(b) Average recorded investment is for the years ended December 31, 2015 and December 31, 2014, respectively.
The PNC Financial Services Group, Inc. – Form 10-K 139