PNC Bank 2013 Annual Report Download - page 21

We hold an equity investment in BlackRock, which is a key
component of our diversified revenue strategy. BlackRock is a
publicly traded company, and additional information
regarding its business is available in its filings with the
Securities and Exchange Commission (SEC).
Non-Strategic Assets Portfolio includes a consumer portfolio
of mainly residential mortgage and brokered home equity
loans and lines of credit, and a small commercial loan and
lease portfolio. We obtained a significant portion of these non-
strategic assets through acquisitions of other companies.
S UBSIDIARIES
Our corporate legal structure at December 31, 2013 consisted of
one domestic subsidiary bank, including its subsidiaries, and
approximately 130 active non-bank subsidiaries. Our bank
subsidiary is PNC Bank, National Association (PNC Bank,
N.A.), headquartered in Pittsburgh, Pennsylvania. For additional
information on our subsidiaries, see Exhibit 21 to this Report.
S TATISTICAL D ISCLOSURE B Y B ANK H OLDING C OMPANIES
The following statistical information is included on the indicated
pages of this Report and is incorporated herein by reference:
Form 10-K page
Average Consolidated Balance Sheet And
Net Interest Analysis 223-224
Analysis Of Year-To-Year Changes In Net
Interest Income 225
Book Values Of Securities 43-44
and 149-154
Maturities And Weighted-Average Yield Of
Securities 153-154
Loan Types 38-42, 130-131
and 226
Selected Loan Maturities And Interest
Sensitivity 229
Nonaccrual, Past Due And Restructured
Loans And Other Nonperforming Assets
73-82, 117-120,
131-144 and 227
Potential Problem Loans And Loans Held
For Sale 44 and 74-84
Summary Of Loan Loss Experience 82-84,
131-148 and 228
Assignment Of Allowance For Loan And
Lease Losses 82-84 and 228
Average Amount And Average Rate Paid
On Deposits 223-224
Time Deposits Of $100,000 Or More 176 and 229
Selected Consolidated Financial Data 28-29
Short-term borrowings – not included as
average balances during 2013, 2012, and
2011 were less than 30% of total
shareholders’ equity at the end of each
period.
E UROPEAN E XPOSURE
For information regarding our exposure to European entities at
December 31, 2013 and December 31, 2012, see the European
Exposure section included in Item 7 of this Report.
S UPERVISION AND R EGULATION
PNC is a bank holding company registered under the Bank
Holding Company Act of 1956 as amended (BHC Act) and a
financial holding company under the Gramm-Leach-Bliley Act.
We are subject to numerous governmental regulations, some
of which are highlighted below. See Note 22 Regulatory
Matters in the Notes To Consolidated Financial Statements in
Item 8 of this Report for additional information regarding our
regulatory matters. Applicable laws and regulations restrict
our permissible activities and investments, impose conditions
and requirements on the products and services we offer and
the manner in which they are offered and sold, and require
compliance with protections for loan, deposit, brokerage,
fiduciary, investment management and other customers,
among other things. They also restrict our ability to
repurchase stock or pay dividends, or to receive dividends
from our bank subsidiary, and impose capital adequacy
requirements. The consequences of noncompliance can
include substantial monetary and nonmonetary sanctions.
In addition, we are subject to comprehensive supervision and
periodic examination by, among other regulatory bodies, the
Board of Governors of the Federal Reserve System (Federal
Reserve) and the Office of the Comptroller of the Currency
(OCC). These examinations consider not only compliance
with applicable laws, regulations and supervisory policies of
the agency, but also capital levels, asset quality and risk,
management ability and performance, earnings, liquidity and
various other factors. The results of examination activity by
any of our federal bank regulators potentially can result in the
imposition of significant limitations on our activities and
growth. These regulatory agencies generally have broad
discretion to impose restrictions and limitations on the
operations of a regulated entity and take enforcement action
against a regulated entity where the relevant agency
determines, among other things, that such operations fail to
comply with applicable law or regulations or are conducted in
an unsafe or unsound manner. This supervisory framework,
including the examination reports and supervisory ratings
(which are not publicly available) of the agencies, could
materially impact the conduct, growth and profitability of our
operations.
The Consumer Financial Protection Bureau (CFPB) is
responsible for examining PNC Bank, N.A. and its affiliates
(including PNC) for compliance with most federal consumer
financial protection laws, including the laws relating to fair
lending and prohibiting unfair, deceptive or abusive acts or
practices in connection with the offer, sale or provision of
consumer financial products or services, and for enforcing
such laws with respect to PNC Bank, N.A. and its affiliates.
The PNC Financial Services Group, Inc. – Form 10-K 3