Net Unfunded Credit Commitments for PNC FINANCIAL SERVICES GROUP INC (PNC)

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PNC Financial Services (PNC)

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PNC » Topics » Net Unfunded Credit Commitments

These excerpts taken from the PNC 10-Q filed May 11, 2009.

Net Unfunded Credit Commitments


In millions	March 31 2009		Dec 31 2008
Commercial and commercial real estate	$	58,771	$	60,020
Home equity lines of credit		22,416		23,195
Consumer credit card lines		19,291		19,028
Other		2,343		2,645
Total	$	102,821	$	104,888

are reported net of participations, assignments and syndications, primarily to financial institutions, totaling $8.7 billion at March 31, 2009 and $8.6 billion at December 31, 2008.

Unfunded liquidity facility commitments and standby bond purchase agreements totaled $6.7 billion at March 31, 2009 and $7.0 billion at December 31, 2008 and are included in the preceding table primarily within the “Commercial and commercial real estate” category.

In addition to credit commitments, our net outstanding standby letters of credit totaled $10.3 billion at March 31, 2009 and December 31, 2008. Standby letters of credit commit us to make payments on behalf of our customers if specified future events occur.

Net Unfunded Credit Commitments


In millions	March 31 2009		December 31 2008
Commercial and commercial real estate	$	58,771	$	60,020
Home equity lines of credit		22,416		23,195
Consumer credit card lines		19,291		19,028
Other		2,343		2,645
Total	$	102,821	$	104,888

Commitments to extend credit represent arrangements to lend funds subject to specified contractual conditions. At March 31, 2009 commercial commitments are reported net of $8.7 billion of participations, assignments and syndications, primarily to financial services companies. The comparable amount at December 31, 2008 was $8.6 billion. Commitments generally have fixed expiration dates, may require payment of a fee, and contain termination clauses in the event the customer’s credit quality deteriorates. Based on our historical experience, most commitments expire unfunded, and therefore cash requirements are substantially less than the total commitment. Consumer home equity lines of credit accounted for 54% of consumer unfunded credit commitments.

Unfunded credit commitments related to Market Street totaled $6.1 billion at March 31, 2009 and $6.4 billion at December 31, 2008 and are included in the preceding table primarily within the “Commercial and Commercial Real Estate” category.

At March 31, 2009, we pledged $31.4 billion of loans to the Federal Reserve Bank (FRB) and $48.2 billion of loans to the

Federal Home Loan Banks (FHLB) as collateral for the contingent ability to borrow, if necessary.

Certain loans are accounted for at fair value in accordance with SFAS 155, “Accounting for Certain Hybrid Financial Instruments,” or SFAS 159, “The Fair Value Option for Financial Assets and Financial Liabilities,” with changes in the fair value reported in current period earnings. The fair value of these loans was $53 million, or less than .5% of the total loan portfolio, at March 31, 2009.

These excerpts taken from the PNC 10-K filed Mar 2, 2009.

Net Unfunded Credit Commitments


December 31 - in millions	2008 (a)		2007
Commercial and commercial real estate	$	59,982	$	42,021
Home equity lines of credit		23,195		8,680
Consumer credit card lines		19,028		969
Other		2,683		1,677
Total	$	104,888	$	53,347

(a)	Includes $53.9 billion related to National City.

Unfunded commitments are concentrated in our primary geographic markets. Commitments to extend credit represent arrangements to lend funds or provide liquidity subject to

specified contractual conditions. Commercial commitments are reported net of participations, assignments and syndications, primarily to financial institutions, totaling $8.6 billion at December 31, 2008 and $8.9 billion at December 31, 2007.

Unfunded liquidity facility commitments and standby bond purchase agreements totaled $7.0 billion at December 31, 2008 and $9.4 billion at December 31, 2007 and are included in the preceding table primarily within the “Commercial” and “Consumer” categories. The decrease from December 31, 2007 was due to a $2.5 billion decline in Market Street commitments.

In addition to credit commitments, our net outstanding standby letters of credit totaled $10.3 billion at December 31, 2008 and $4.8 billion at December 31, 2007. Standby letters of credit commit us to make payments on behalf of our customers if specified future events occur.

Net Unfunded Credit Commitments


December 31 - in millions	2008 (a)		2007
Commercial and commercial real estate	$	59,982	$	42,021
Home equity lines of credit		23,195		8,680
Consumer credit card lines		19,028		969
Other		2,683		1,677
Total	$	104,888	$	53,347

(a)	Amounts at December 31, 2008 include $53.9 billion of net unfunded credit commitments related to National City.

Commitments to extend credit represent arrangements to lend funds subject to specified contractual conditions. At December 31, 2008, commercial commitments are reported net of $8.6 billion of participations, assignments and syndications, primarily to financial services companies. The comparable amount at December 31, 2007 was $8.9 billion. Commitments generally have fixed expiration dates, may require payment of a fee, and contain termination clauses in the event the customer’s credit quality deteriorates. Based on our historical experience, most commitments expire unfunded, and therefore cash requirements are substantially less than the total commitment. Consumer home equity lines of credit accounted for 55% of consumer unfunded credit commitments.

Unfunded credit commitments related to Market Street totaled $6.4 billion at December 31, 2008 and $8.8 billion at December 31, 2007 and are included in the preceding table primarily within the “Commercial” and “Consumer” categories.

At December 31, 2008, we pledged $32.9 billion of loans to the Federal Reserve Bank (“FRB”) and $50.0 billion of loans to the Federal Home Loan Bank (“FHLB”) as collateral for the contingent ability to borrow, if necessary.

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This excerpt taken from the PNC 10-Q filed Nov 6, 2008.

Net Unfunded Credit Commitments


In millions	September 30 2008		December 31 2007
Commercial	$	42,424	$	39,171
Consumer		11,496		10,875
Commercial real estate		2,337		2,734
Other		837		567
Total	$	57,094	$	53,347

Unfunded commitments are concentrated in our primary geographic markets. Commitments to extend credit represent arrangements to lend funds or provide liquidity subject to specified contractual conditions. Commercial commitments reported net of participations, assignments and syndications totaled $7.6 billion at September 30, 2008 and $8.9 billion at December 31, 2007.

Unfunded liquidity facility commitments and standby bond purchase agreements totaled $7.8 billion at September 30,

2008 and $9.4 billion at December 31, 2007 and are included in the preceding table primarily within the “Commercial” and “Consumer” categories. The decrease from December 31, 2007 was primarily due to a decline in Market Street commitments.

In addition to credit commitments, our net outstanding standby letters of credit totaled $5.8 billion at September 30, 2008 and $4.8 billion at December 31, 2007. Standby letters of credit commit us to make payments on behalf of our customers if specified future events occur.

This excerpt taken from the PNC 10-Q filed Aug 8, 2008.

Net Unfunded Credit Commitments


In millions	June 30 2008		December 31 2007
Commercial	$	37,127	$	39,171
Consumer		11,394		10,875
Commercial real estate		2,525		2,734
Other		512		567
Total	$	51,558	$	53,347

Unfunded commitments are concentrated in our primary geographic markets. Commitments to extend credit represent arrangements to lend funds or provide liquidity subject to specified contractual conditions. Commercial commitments reported net of participations, assignments and syndications totaled $7.9 billion at June 30, 2008 and $8.9 billion at December 31, 2007. The decrease from December 31, 2007 was primarily due to Market Street.

Unfunded liquidity facility commitments and standby bond purchase agreements totaled $7.5 billion at June 30, 2008 and $9.4 billion at December 31, 2007 and are included in the preceding table primarily within the “Commercial” and “Consumer” categories. The decrease from December 31, 2007 was primarily due to Market Street.

In addition to credit commitments, our net outstanding standby letters of credit totaled $5.7 billion at June 30, 2008 and $4.8 billion at December 31, 2007. Standby letters of credit commit us to make payments on behalf of our customers if specified future events occur.

This excerpt taken from the PNC 10-Q filed May 12, 2008.

Net Unfunded Credit Commitments


In millions	March 31 2008		December 31 2007
Commercial	$	38,402	$	39,171
Consumer		11,075		10,875
Commercial real estate		2,652		2,734
Other		297		567
Total	$	52,426	$	53,347

Unfunded commitments are concentrated in our primary geographic markets. Commitments to extend credit represent arrangements to lend funds or provide liquidity subject to specified contractual conditions. Commercial commitments are reported net of participations, assignments and syndications, primarily to financial institutions, totaling $7.9 billion at March 31, 2008 and $8.9 billion at December 31, 2007.

Unfunded liquidity facility commitments and standby bond purchase agreements totaled $9.4 billion at both March 31, 2008 and December 31, 2007 and are included in the preceding table primarily within the “Commercial” and “Consumer” categories.

In addition to credit commitments, our net outstanding standby letters of credit totaled $5.2 billion at March 31, 2008 and $4.8 billion at December 31, 2007. Standby letters of credit commit us to make payments on behalf of our customers if specified future events occur.

This excerpt taken from the PNC 10-K filed Feb 29, 2008.

Net Unfunded Credit Commitments


December 31 - in millions	2007		2006
Commercial	$	39,171	$	31,009
Consumer		10,875		10,495
Commercial real estate		2,734		2,752
Other		567		579
Total	$	53,347	$	44,835

Commitments to extend credit represent arrangements to lend funds subject to specified contractual conditions. At December 31, 2007, commercial commitments are reported net of $8.9 billion of participations, assignments and syndications, primarily to financial services companies. The comparable amount at December 31, 2006 was $8.3 billion. Commitments generally have fixed expiration dates, may require payment of a fee, and contain termination clauses in the event the customer’s credit quality deteriorates. Based on our historical experience, most commitments expire unfunded, and therefore cash requirements are substantially less than the total commitment. Consumer home equity lines of credit accounted for 80% of consumer unfunded credit commitments.

Unfunded credit commitments related to Market Street totaled $8.8 billion at December 31, 2007 and $5.6 billion at

December 31, 2006 and are included in the preceding table primarily within the “Commercial” and “Consumer” categories.

Note 24 Commitments and Guarantees includes information regarding standby letters of credit and bankers’ acceptances. At December 31, 2007, the largest industry concentration was for general medical and surgical hospitals, which accounted for approximately 5% of the total letters of credit and bankers’ acceptances.

At December 31, 2007, we pledged $1.6 billion of loans to the Federal Reserve Bank (“FRB”) and $33.5 billion of loans to the Federal Home Loan Bank (“FHLB”) as collateral for the contingent ability to borrow, if necessary.

Certain directors and executive officers of PNC and its subsidiaries, as well as certain affiliated companies of these directors and officers, were customers of and had loans with subsidiary banks in the ordinary course of business. All such loans were on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other customers and did not involve more than a normal risk of collectibility or present other unfavorable features. The aggregate principal amounts of these loans were $13 million at December 31, 2007 and $18 million at December 31, 2006. During 2007, new loans of $48 million were funded and repayments totaled $53 million.

This excerpt taken from the PNC 10-K filed Feb 4, 2008.

Net Unfunded Credit Commitments


December 31 - in millions	2006		2005
Commercial	$	31,009	$	27,774
Consumer		10,495		9,471
Commercial real estate		2,752		2,337
Other		579		596
Total	$	44,835	$	40,178

Commitments to extend credit represent arrangements to lend funds subject to specified contractual conditions. At December 31, 2006, commercial commitments are reported net of $8.3 billion of participations, assignments and syndications, primarily to financial services companies. The comparable amount at December 31, 2005 was $6.7 billion. Commitments generally have fixed expiration dates, may require payment of a fee, and contain termination clauses in the event the customer’s credit quality deteriorates. Based on our historical experience, most commitments expire unfunded, and therefore cash requirements are substantially less than the total commitment. Consumer home equity lines of credit accounted for 74% of consumer unfunded credit commitments.

As a result of deconsolidating Market Street in October 2005, amounts related to Market Street were considered third party unfunded commitments at December 31, 2006 and 2005. These unfunded credit commitments totaled $5.6 billion at December 31, 2006 and $4.6 billion at December 31, 2005 and are included in the preceding table primarily within the “Commercial” and “Consumer” categories.

Net outstanding standby letters of credit totaled $4.4 billion at December 31, 2006 and $4.2 billion at December 31, 2005.

Standby letters of credit commit us to make payments on behalf of customers if certain specified future events occur. Such instruments are typically issued to support industrial revenue bonds, commercial paper, and bid-or-performance related contracts. Maturities for standby letters of credit ranged from 2007 to 2017. See Note 24 Commitments and Guarantees for additional information.

At December 31, 2006, the largest industry concentration was for general medical and surgical hospitals, which accounted for approximately 5% of the total letters of credit and bankers’ acceptances.

At December 31, 2006, we pledged $1.3 billion of loans to the FRB and $24.1 billion of loans to the Federal Home Loan Bank (“FHLB”) as collateral for the contingent ability to borrow, if necessary.

Certain directors and executive officers of PNC and its subsidiaries, as well as certain affiliated companies of these directors and officers, were customers of and had loans with subsidiary banks in the ordinary course of business. All such loans were on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other customers and did not involve more than a normal risk of collectibility or present other unfavorable features. The aggregate principal amounts of these loans were $18 million at December 31, 2006 and $21 million at December 31, 2005. During 2006, new loans of $58 million were funded and repayments totaled $61 million.

This excerpt taken from the PNC 10-Q filed Nov 8, 2007.

Net Unfunded Credit Commitments


In millions	September 30 2007		December 31 2006
Commercial	$	37,906	$	32,265
Consumer		10,595		9,239
Commercial real estate		3,507		2,752
Other		582		579
Total	$	52,590	$	44,835

Unfunded commitments are concentrated in our primary geographic markets. Commitments to extend credit represent arrangements to lend funds or provide liquidity subject to specified contractual conditions. Commercial commitments are reported net of participations, assignments and syndications, primarily to financial institutions, totaling $8.5 billion at September 30, 2007 and $8.3 billion at December 31, 2006.

Unfunded liquidity facility commitments and standby bond purchase agreements totaled $8.3 billion at September 30, 2007 and $6.0 billion at December 31, 2006 and are included in the preceding table primarily within the “Commercial” and “Consumer” categories.

In addition to credit commitments, our net outstanding standby letters of credit totaled $4.8 billion at September 30, 2007 and $4.4 billion at December 31, 2006. Standby letters of credit commit us to make payments on behalf of our customers if specified future events occur.

This excerpt taken from the PNC 10-Q filed Aug 8, 2007.

Net Unfunded Credit Commitments


In millions	June 30 2007		December 31 2006
Commercial	$	35,527	$	31,009
Consumer		11,102		10,495
Commercial real estate		3,688		2,752
Other		361		579
Total	$	50,678	$	44,835

Unfunded commitments are concentrated in our primary geographic markets. Net unfunded commitments at June 30, 2007 include $4.9 billion related to our acquisition of Mercantile. Commitments to extend credit represent arrangements to lend funds or provide liquidity subject to specified contractual conditions. Commercial commitments are reported net of participations, assignments and syndications, primarily to financial institutions, totaling $9.1 billion at June 30, 2007 and $8.3 billion at December 31, 2006.

Unfunded liquidity facility commitments and standby bond purchase agreements totaled $6.9 billion at June 30, 2007 and $6.0 billion at December 31, 2006 and are included in the preceding table primarily within the “Commercial” and “Consumer” categories.

In addition to credit commitments, our net outstanding standby letters of credit totaled $4.9 billion at June 30, 2007 and $4.4 billion at December 31, 2006. Standby letters of credit commit us to make payments on behalf of our customers if specified future events occur.

This excerpt taken from the PNC 10-Q filed May 9, 2007.

Net Unfunded Credit Commitments


In millions	March 31 2007		December 31 2006
Commercial	$	33,613	$	31,009
Consumer		11,525		10,495
Commercial real estate		3,855		2,752
Other		270		579
Total	$	49,263	$	44,835

Unfunded commitments are concentrated in our primary geographic markets. Net unfunded commitments at March 31, 2007 include $5.0 billion related to our acquisition of Mercantile. Commitments to extend credit represent arrangements to lend funds or provide liquidity subject to specified contractual conditions. Commercial commitments are reported net of participations, assignments and syndications, primarily to financial institutions, totaling $8.5 billion at March 31, 2007 and $8.3 billion at December 31, 2006.

Unfunded liquidity facility commitments and standby bond purchase agreements totaled $6.0 billion at March 31, 2007 and $6.0 billion at December 31, 2006 and are included in the preceding table primarily within the “Commercial” and “Consumer” categories.

In addition to credit commitments, our net outstanding standby letters of credit totaled $4.8 billion at March 31, 2007 and $4.4 billion at December 31, 2006. Standby letters of credit commit us to make payments on behalf of our customers if specified future events occur.

This excerpt taken from the PNC 10-K filed Mar 1, 2007.

Net Unfunded Credit Commitments


December 31 - in millions	2006		2005
Commercial	$	31,009	$	27,774
Consumer		10,495		9,471
Commercial real estate		2,752		2,337
Other		579		596
Total	$	44,835	$	40,178

Net outstanding standby letters of credit totaled $4.4 billion at December 31, 2006 and $4.2 billion at December 31, 2005.

Certain directors and executive officers of PNC and its subsidiaries, as well as certain affiliated companies of these directors and officers, were customers of and had loans with subsidiary banks in the ordinary course of business. All such loans were on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other customers and did not involve more than a normal risk of collectibility or present other unfavorable features. The aggregate principal amounts of these loans were $18 million at December 31, 2006 and $21 million at December 31, 2005. During 2006, new loans of $58 million were funded and repayments totaled $61 million.

This excerpt taken from the PNC 10-Q filed Nov 9, 2006.

Net Unfunded Credit Commitments


In millions	September 30 2006	December 31 2005
Commercial	$30,018	$27,774
Consumer	10,164	9,471
Commercial real estate	2,998	2,337
Other	624	596
Total	$43,804	$40,178

Commitments to extend credit represent arrangements to lend funds or provide liquidity subject to specified contractual conditions. Commercial commitments are reported net of participations, assignments and syndications, primarily to financial institutions, totaling $6.8 billion at September 30, 2006 and $6.7 billion at December 31, 2005.

Unfunded liquidity facility commitments and standby bond purchase agreements totaled $6.1 billion at September 30, 2006 and $5.1 billion at December 31, 2005 and are included in the preceding table primarily within the “Commercial” and “Consumer” categories.

In addition to credit commitments, our net outstanding standby letters of credit totaled $4.4 billion at September 30, 2006 and $4.2 billion at December 31, 2005. Standby letters of credit commit us to make payments on behalf of our customers if specified future events occur.

This excerpt taken from the PNC 10-Q filed Aug 9, 2006.

Net Unfunded Credit Commitments


In millions	June 30 2006	December 31 2005
Commercial	$28,175	$27,774
Consumer	9,975	9,471
Commercial real estate	2,419	2,337
Other	335	596
Total	$40,904	$40,178

Commitments to extend credit represent arrangements to lend funds or provide liquidity subject to specified contractual conditions. Commercial commitments are reported net of participations, assignments and syndications, primarily to financial institutions, totaling $7.1 billion at June 30, 2006 and $6.7 billion at December 31, 2005.

Unfunded liquidity commitments totaled $4.6 billion at June 30, 2006 and December 31, 2005 and are included in the preceding table primarily within the “Commercial” and “Consumer” categories.

In addition to credit commitments, our net outstanding standby letters of credit totaled $4.3 billion at June 30, 2006 and $4.2 billion at December 31, 2005. Standby letters of credit commit us to make payments on behalf of our customers if specified future events occur.

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