PNC Bank 2013 Annual Report Download - page 243

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A
NALYSIS OF
Y
EAR
-T
O
-Y
EAR
C
HANGES
I
N
N
ET
I
NTEREST
I
NCOME
2013/2012 2012/2011
Increase/(Decrease) in Income/
Expense Due to Changes in:
Increase/(Decrease) in Income/
Expense Due to Changes in:
Taxable-equivalent basis – in millions Volume Rate Total Volume Rate Total
Interest-Earning Assets
Investment securities
Securities available for sale
Residential mortgage-backed
Agency $ (76) $ (115) $(191) $ 21 $(100) $ (79)
Non-agency (37) 4 (33) (49) 5 (44)
Commercial mortgage-backed 17 (13) 4 10 (12) (2)
Asset-backed 12 (8) 4 39 (17) 22
U.S. Treasury and government agencies (8) (10) (18) (35) (24) (59)
State and municipal 15 (9) 6 (4) 4
Other debt (10) (8) (18) (9) 4 (5)
Total securities available for sale (87) (159) (246) (11) (156) (167)
Securities held to maturity
Residential mortgage-backed (2) (1) (3) 70 3 73
Commercial mortgage-backed (38) (6) (44) (8) (17) (25)
Asset-backed 2 (3) (1) (22) (4) (26)
U.S. Treasury and government agencies 66
State and municipal 3 11 14 17 (1) 16
Other 1 1 4 (1) 3
Total securities held to maturity (29) (4) (33) 55 (8) 47
Total investment securities (115) (164) (279) 41 (161) (120)
Loans
Commercial 394 (598) (204) 790 (267) 523
Commercial real estate 72 (140) (68) 73 53 126
Equipment lease financing 28 (43) (15) 22 (24) (2)
Consumer 108 (165) (57) 241 (113) 128
Residential real estate (23) (36) (59) 29 (80) (51)
Total loans 601 (1,004) (403) 1,185 (461) 724
Loans held for sale (4) (7) (11) 14 (39) (25)
Federal funds sold and resale agreements (7) (7) (14) (10) (1) (11)
Other 83 (79) 4 (31) 43 12
Total interest-earning assets $ 518 $(1,221) $(703) $1,069 $(489) $ 580
Interest-Bearing Liabilities
Interest-bearing deposits
Money market $ 10 $ (20) $ (10) $ 20 $ (66) $ (46)
Demand 4 4 4 (13) (9)
Savings 1 1 2 (8) (6)
Retail certificates of deposit (35) 5 (30) (80) (138) (218)
Time deposits in foreign offices and other time (4) (3) (7) 2 (5) (3)
Total interest-bearing deposits 16 (58) (42) 41 (323) (282)
Borrowed funds
Federal funds purchased and repurchase agreements (1) (3) (4) 3 3
Federal Home Loan Bank borrowings (7) (20) (27) 36 (17) 19
Bank notes and senior debt 21 (66) (45) (22) 6 (16)
Subordinated debt 15 (130) (115) (91) (45) (136)
Commercial paper (4) (3) (7) 14 14
Other 2 4 6 (13) 11 (2)
Total borrowed funds (30) (162) (192) 127 (245) (118)
Total interest-bearing liabilities 25 (259) (234) 121 (521) (400)
Change in net interest income $ 461 $ (930) $(469) $ 953 $ 27 $ 980
Changes attributable to rate/volume are prorated into rate and volume components.
Interest income includes the effects of taxable-equivalent adjustments using a statutory federal income tax rate of 35% to increase tax-exempt interest income to a taxable-equivalent basis.
The taxable-equivalent adjustments to interest income for the years ended December 31, 2013, 2012 and 2011 were $168 million, $144 million and $104 million, respectively.
The PNC Financial Services Group, Inc. – Form 10-K 225