PNC Bank 2015 Annual Report Download - page 236

NONPERFORMING ASSETS AND RELATED INFORMATION
December 31 – dollars in millions 2015 2014 2013 2012 2011
Nonperforming loans
Commercial $ 351 $ 290 $ 457 $ 590 $ 899
Commercial real estate 187 334 518 807 1,345
Equipment lease financing 7 2 5 13 22
Total commercial lending 545 626 980 1,410 2,266
Consumer lending (a)
Home equity (b) (c) 977 1,112 1,139 951 529
Residential real estate (b) 549 706 904 845 726
Credit card (d) 33458
Other consumer (b) 52 63 61 43 31
Total consumer lending (e) 1,581 1,884 2,108 1,844 1,294
Total nonperforming loans (f) 2,126 2,510 3,088 3,254 3,560
OREO and foreclosed assets
Other real estate owned (OREO) 279 351 360 507 561
Foreclosed and other assets 20 19 9 33 35
Total OREO and foreclosed assets 299 370 369 540 596
Total nonperforming assets $2,425 $2,880 $3,457 $3,794 $4,156
Nonperforming loans to total loans 1.03% 1.23% 1.58% 1.75% 2.24%
Nonperforming assets to total loans, OREO and foreclosed assets 1.17 1.40 1.76 2.04 2.60
Nonperforming assets to total assets .68 .83 1.08 1.24 1.53
Interest on nonperforming loans
Computed on original terms $ 115 $ 125 $ 163 $ 212 $ 278
Recognized prior to nonperforming status 22 25 30 30 47
Troubled Debt Restructurings
Nonperforming $1,119 $1,370 $1,511 $1,589 $1,141
Performing 1,232 1,213 1,228 1,270 1,062
Past due loans
Accruing loans past due 90 days or more (g) $ 881 $1,105 $1,491 $2,351 $2,973
As a percentage of total loans .43% .54% .76% 1.26% 1.87%
Past due loans held for sale
Accruing loans held for sale past due 90 days or more (h) $ 4 $ 9 $ 4 $ 38 $ 49
As a percentage of total loans held for sale .29% .40% .18% 1.03% 1.67%
(a) Excludes most consumer loans and lines of credit, not secured by residential real estate, which are charged off after 120 to 180 days past due and are not placed on nonperforming
status.
(b) Pursuant to alignment with interagency supervisory guidance on practices for loans and lines of credit related to consumer lending in the first quarter of 2013, nonperforming home
equity loans increased $214 million, nonperforming residential mortgage loans increased $187 million and nonperforming other consumer loans increased $25 million. Charge-offs
were taken on these loans where the fair value less costs to sell the collateral was less than the recorded investment of the loan and were $134 million.
(c) In the first quarter of 2012, we adopted a policy stating that Home equity loans past due 90 days or more would be placed on nonaccrual status. Prior policy required that these loans
be past due 180 days before being placed on nonaccrual status.
(d) Effective in the second quarter 2011, the commercial nonaccrual policy was applied to certain small business credit card balances. This change resulted in loans being placed on
nonaccrual status when they become 90 days or more past due. We continue to charge off these loans at 180 days past due.
(e) Pursuant to regulatory guidance, issued in the third quarter of 2012, nonperforming consumer loans, primarily home equity and residential mortgage, increased $288 million in 2012
related to changes in treatment of certain loans classified as TDRs, net of charge-offs, resulting from bankruptcy where no formal reaffirmation was provided by the borrower and
therefore a concession has been granted based upon discharge from personal liability. Charge-offs have been taken where the fair value less costs to sell the collateral was less than the
recorded investment of the loan and were $128 million.
(f) Nonperforming loans exclude certain government insured or guaranteed loans, loans held for sale, loans accounted for under the fair value option and purchased impaired loans.
(g) Amounts include certain government insured or guaranteed consumer loans totaling $765 million, $996 million, $995 million, $2,236 million and $2,474 million at December 31,
2015, December 31, 2014, December 31, 2013, December 31, 2012 and December 31, 2011, respectively. Past due loan amounts exclude purchased impaired loans as they are
considered current loans due to the accretion of interest income.
(h) Amounts include certain government insured or guaranteed consumer loans held for sale totaling $4 million, $9 million, $4 million, zero, and $15 million at December 31,
2015, December 31, 2014, December 31, 2013, December 31, 2012 and December 31, 2011, respectively.
218 The PNC Financial Services Group, Inc. – Form 10-K