Fair Value (Tables)

9 Months Ended

Sep. 30, 2014

Fair Value Measurements - Recurring Basis Summary

Assets and liabilities measured at fair value on a recurring basis, including instruments for which PNC has elected the fair value option, follow.

Table 81: Fair Value Measurements - Recurring Basis Summary

					September 30, 2014								December 31, 2013
											Total								Total
In millions				Level 1		Level 2		Level 3		Fair Value			Level 1	Level 2		Level 3		Fair Value
Assets
	Securities available for sale
		U.S. Treasury and government agencies		$	4,712	$	631			$	5,343	$	3,460	$	658			$	4,118
		Residential mortgage-backed
			Agency (a)				18,160				18,160				21,714				21,714
			Non-agency				227	$	4,911		5,138				247	$	5,358		5,605
		Commercial mortgage-backed
			Agency (a)				1,792				1,792				1,763				1,763
			Non-agency				3,788				3,788				4,042				4,042
		Asset-backed					4,531		592		5,123				5,131		641		5,772
		State and municipal					1,704		346		2,050				2,284		333		2,617
		Other debt					1,798		31		1,829				2,505		38		2,543
			Total debt securities		4,712		32,631		5,880		43,223		3,460		38,344		6,370		48,174
		Corporate stocks and other			382		15				397		417		16				433
			Total securities available for sale		5,094		32,646		5,880		43,620		3,877		38,360		6,370		48,607
	Financial derivatives (b) (c)
		Interest rate contracts			2		4,097		27		4,126		25		4,540		34		4,599
		Other contracts					223		2		225				192		2		194
			Total financial derivatives		2		4,320		29		4,351		25		4,732		36		4,793
	Residential mortgage loans held for sale (d)						1,183		4		1,187				1,307		8		1,315
	Trading securities (e)
		Debt (f)			1,333		1,263		34		2,630		2,159		862		32		3,053
		Equity			20						20		20						20
			Total trading securities		1,353		1,263		34		2,650		2,179		862		32		3,073
	Trading loans (b)						35				35				6				6
	Residential mortgage servicing rights (g)								978		978						1,087		1,087
	Commercial mortgage servicing rights (g) (h)								532		532
	Commercial mortgage loans held for sale (d)								867		867						586		586
	Equity investments (b) (i)
		Direct investments							1,235		1,235						1,069		1,069
		Indirect investments (j)							553		553						595		595
			Total equity investments						1,788		1,788						1,664		1,664
	Customer resale agreements (k)						191				191				207				207
	Loans (l) (m)						634		383		1,017				623		527		1,150
	Other assets (b)
		BlackRock Series C Preferred Stock (n)							345		345						332		332
		Other			188		221		8		417		209		184		8		401
			Total other assets		188		221		353		762		209		184		340		733
		Total assets		$	6,637	$	40,493	$	10,848	$	57,978	$	6,290	$	46,281	$	10,650	$	63,221
Liabilities
	Financial derivatives (c) (o)
		Interest rate contracts		$	2	$	2,886	$	5	$	2,893	$	6	$	3,307	$	13	$	3,326
		BlackRock LTIP							345		345						332		332
		Other contracts					160		149		309				182		94		276
			Total financial derivatives		2		3,046		499		3,547		6		3,489		439		3,934
	Trading securities sold short (p)
		Debt			1,352		14				1,366		1,341		1				1,342
			Total trading securities sold short		1,352		14				1,366		1,341		1				1,342
	Other borrowed funds (m)						94		180		274				110		199		309
		Total liabilities		$	1,354	$	3,154	$	679	$	5,187	$	1,347	$	3,600	$	638	$	5,585
(a)		These line items were corrected as of December 31, 2013 due to a misclassification of Government National Mortgage Association (GNMA) securities collateralized by project loans. $1.1 billion was previously reported as residential mortgage-backed agency securities and was reclassified to commercial mortgage-backed agency securities.
(b)		Included in Other assets on our Consolidated Balance Sheet.
(c)		Amounts at September 30, 2014 and December 31, 2013 are presented gross and are not reduced by the impact of legally enforceable master netting agreements that allow PNC to net positive and negative positions and cash collateral held or placed with the same counterparty. The net asset amounts were $1.8 billion at September 30, 2014 and $1.7 billion at December 31, 2013, and the net liability amounts were $1.0 billion and $.9 billion, respectively.
(d)		Included in Loans held for sale on our Consolidated Balance Sheet. PNC has elected the fair value option for certain residential and commercial mortgage loans held for sale.
(e)		Fair value includes net unrealized gains of $35 million at September 30, 2014 compared with net unrealized gains of $11 million at December 31, 2013.
(f)		Approximately 29% of these securities are residential mortgage-backed securities and 51% are U.S. Treasury and government agencies securities at September 30, 2014. Comparable amounts at December 31, 2013 were 17% and 69%, respectively.
(g)		Included in Other intangible assets on our Consolidated Balance Sheet.
(h)		As of January 1, 2014, PNC made an irrevocable election to measure all classes of commercial MSRs at fair value. Accordingly, beginning with the first quarter of 2014, commercial MSRs are measured at fair value on a recurring basis.
(i)		Our adoption of ASU 2013-08, Financial Services - Investment Companies (Topic 946): Amendments to the Scope, Measurement and Disclosure Requirements, did not result in a change in classification or status of our accounting for investment companies.
(j)		The indirect equity funds are not redeemable, but PNC receives distributions over the life of the partnership from liquidation of the underlying investments by the investee, which we expect to occur over the next twelve years. The amount of unfunded contractual commitments related to indirect equity investments was $117 million and related to direct equity investments was $28 million as of September 30, 2014, respectively. Comparable amounts at December 31, 2013 were $128 million and $36 million, respectively.
(k)		Included in Federal funds sold and resale agreements on our Consolidated Balance Sheet. PNC has elected the fair value option for these items.
(l)		Included in Loans on our Consolidated Balance Sheet.
(m)		These line items were corrected as of December 31, 2013 to include transferred loans over which PNC regained effective control and the related liabilities that are recorded pursuant to ASC 860.
(n)		PNC has elected the fair value option for these shares.
(o)		Included in Other liabilities on our Consolidated Balance Sheet.
(p)		Included in Other borrowed funds on our Consolidated Balance Sheet.

Reconciliation of Level 3 Assets and Liabilities

Reconciliations of assets and liabilities measured at fair value on a recurring basis using Level 3 inputs for the three months and nine months ended September 30, 2014 and 2013 follow:

Table 82: Reconciliation of Level 3 Assets and Liabilities

Three Months Ended September 30, 2014

																											Unrealized
																											gains (losses)
								Total realized / unrealized																			on assets and
							gains or losses for the period (a)																				liabilities held on
											Included																Consolidated
Level 3 Instruments					Fair Value						in Other										Transfers		Transfers		Fair Value		Balance Sheet
	Only				June 30,			Included in			comprehensive										into		out of		Sept. 30,		at Sept. 30,
In millions					2014			Earnings			income		Purchases		Sales		Issuances		Settlements		Level 3 (b)		Level 3 (b)		2014		2014 (c)
Assets
	Securities available for
		sale
		Residential mortgage-
			backed non-agency		$	5,107		$	31		$	(5)							$	(222)					$	4,911	$	(1)
		Asset-backed				619			3			9								(39)						592
		State and municipal				345						1														346
		Other debt				31																				31
			Total securities
				available for sale		6,102			34			5								(261)						5,880		(1)
	Financial derivatives					41			46				$	1						(59)						29		30
	Residential mortgage
		loans held for sale				4								3							$	5	$	(8)		4
	Trading securities - Debt					33			1																	34
	Residential mortgage
		servicing rights				967			(4)					28			$	23		(36)						978		(3)
	Commercial mortgage
		servicing rights				515			5					16				19		(23)						532		5
	Commercial mortgage
		loans held for sale				521			6									349		(9)						867		6
	Equity investments
		Direct investments				1,219			48					93	$	(125)										1,235		38
		Indirect investments				574			28					7		(56)										553		27
			Total equity
				investments		1,793			76					100		(181)										1,788		65
	Loans					373			22					29		(4)				(22)		7		(22)		383		20
	Other assets
		BlackRock Series C
			Preferred Stock			335			10																	345		10
		Other				8																				8
			Total other assets			343			10																	353		10
				Total assets	$	10,692		$	196	(e)	$	5	$	177	$	(185)	$	391	$	(410)	$	12	$	(30)	$	10,848	$	132	(f)
Liabilities
	Financial derivatives (d)				$	454		$	75										$	(30)					$	499	$	51
	Other borrowed funds					183			3								$	10		(16)						180
				Total liabilities	$	637		$	78	(e)								10	$	(46)					$	679	$	51	(f)

Three Months Ended September 30, 2013

																											Unrealized
																											gains (losses)
								Total realized / unrealized																			on assets and
							gains or losses for the period (a)																				liabilities held on
											Included																Consolidated
Level 3 Instruments					Fair Value						in Other										Transfers		Transfers		Fair Value		Balance Sheet
	Only				June 30,			Included in			comprehensive										into		out of		Sept. 30,		at Sept. 30,
In millions					2013			Earnings			income		Purchases		Sales		Issuances		Settlements		Level 3 (b)		Level 3 (b)		2013		2013 (c)
Assets
	Securities available for
		sale
		Residential mortgage-
			backed non-agency		$	5,711		$	59		$	32							$	(311)					$	5,491
		Asset-backed				672			2			12								(32)						654	$	(2)
		State and municipal				331																				331
		Other debt				48									$	(5)				(3)						40
			Total securities
				available for sale		6,762			61			44				(5)				(346)						6,516		(2)
	Financial derivatives					51			113				$	2						(101)						65		74
	Residential mortgage
		loans held for sale				30								7		(1)				4	$	4	$	(30)		14		1
	Trading securities - Debt					32																				32
	Residential mortgage
		servicing rights				975			44					22			$	49		(53)						1,037		43
	Commercial mortgage
		loans held for sale				635										(20)				(3)						612
	Equity investments
		Direct investments				1,115			34					44		(50)										1,143		27
		Indirect investments				623			19					8		(34)										616		19
			Total equity
				investments		1,738			53					52		(84)										1,759		46
	Loans					311			12							(1)				(19)		37		(5)		335		6
	Other assets
		BlackRock Series C
			Preferred Stock			270			14																	284		14
		Other				8																				8
			Total other assets			278			14																	292		14
				Total assets	$	10,812		$	297	(e)	$	44	$	83	$	(111)	$	49	$	(518)	$	41	$	(35)	$	10,662	$	182	(f)
Liabilities
	Financial derivatives (d)				$	383		$	87						$	2			$	(88)					$	384	$	12
	Other borrowed funds					195			2											(11)						186
				Total liabilities	$	578		$	89	(e)					$	2			$	(99)					$	570	$	12	(f)

Nine Months Ended September 30, 2014

																												Unrealized
																												gains (losses)
								Total realized / unrealized																				on assets and
								gains or losses for the period (a)																				liabilities held on
												Included																Consolidated
Level 3 Instruments					Fair Value							in Other										Transfers		Transfers		Fair Value		Balance Sheet
	Only				Dec. 31,				Included in			comprehensive										into		out of		Sept. 30,		at Sept. 30,
In millions					2013				Earnings			income		Purchases		Sales		Issuances		Settlements		Level 3 (b)		Level 3 (b)		2014		2014 (c)
Assets
	Securities available for
		sale
		Residential mortgage-
			backed non-agency			$	5,358		$	105		$	80							$	(632)					$	4,911	$	(4)
		Asset-backed					641			11			28								(88)						592
		State and municipal					333			(2)			15														346
		Other debt					38			1				$	1	$	(7)				(2)						31
			Total securities
				available for sale			6,370			115			123		1		(7)				(722)						5,880		(4)
	Financial derivatives						36			165					2						(174)						29		105
	Residential mortgage
		loans held for sale					8			1					11		(3)				(1)	$	9	$	(21)		4		1
	Trading securities - Debt						32			2																	34		2
	Residential mortgage
		servicing rights					1,087			(120)					45			$	66		(100)						978		(115)
	Commercial mortgage
		servicing rights								(20)					32				36		484	(g)					532		(20)
	Commercial mortgage
		loans held for sale					586			13									349		(81)						867		13
	Equity investments
		Direct investments					1,069			120					261		(215)										1,235		101
		Indirect investments					595			61					19		(121)				(1)						553		59
			Total equity
				investments			1,664			181					280		(336)				(1)						1,788		160
	Loans						527			41					85		(142)				(69)		17		(76)		383		34
	Other assets
		BlackRock Series C
			Preferred Stock				332			13																	345		13
		Other					8																				8
			Total other assets				340			13																	353		13
				Total assets		$	10,650		$	391	(e)	$	123	$	456	$	(488)	$	451	$	(664)	$	26	$	(97)	$	10,848	$	189	(f)
Liabilities
	Financial derivatives (d)					$	439		$	145						$	1			$	(86)					$	499	$	9
	Other borrowed funds						199											$	29		(48)						180
				Total liabilities		$	638		$	145	(e)					$	1	$	29	$	(134)					$	679	$	9	(f)


Nine Months Ended September 30, 2013

																											Unrealized
																											gains (losses)
								Total realized / unrealized																			on assets and
							gains or losses for the period (a)																				liabilities held on
											Included																Consolidated
Level 3 Instruments					Fair Value						in Other										Transfers		Transfers		Fair Value		Balance Sheet
	Only				Dec. 31,			Included in			comprehensive										into		out of		Sept. 30,		at Sept. 30,
In millions					2012			Earnings			income		Purchases		Sales		Issuances		Settlements		Level 3 (b)		Level 3 (b)		2013		2013 (c)
Assets
	Securities available for
		sale
		Residential mortgage-
			backed non-agency		$	6,107		$	149		$	71							$	(836)					$	5,491	$	(10)
		Commercial mortgage
			backed non-agency						3											(3)
		Asset-backed				708			6			41								(101)						654		(6)
		State and municipal				339			1				$	4						(13)						331
		Other debt				48								2	$	(7)				(3)						40
			Total securities
				available for sale		7,202			159			112		6		(7)				(956)						6,516		(16)
	Financial derivatives					106			266					4						(309)			$	(2)		65		151
	Residential mortgage
		loans held for sale				27			1					56		(2)				5	$	10		(83)		14		2
	Trading securities - Debt					32																				32
	Residential mortgage
		servicing rights				650			330					86			$	129		(158)						1,037		314
	Commercial mortgage
		loans held for sale				772			(12)							(122)				(26)						612		(13)
	Equity investments
		Direct investments				1,171			68					107		(203)										1,143		41
		Indirect investments				642			52					18		(96)										616		51
			Total equity
				investments		1,813			120					125		(299)										1,759		92
	Loans					134			33							(1)				96		94		(21)		335		23
	Other assets
		BlackRock Series C
			Preferred Stock			243			74											(33)						284		74
		Other				9						(1)														8
			Total other assets			252			74			(1)								(33)						292		74
				Total assets	$	10,988		$	971	(e)	$	111	$	277	$	(431)	$	129	$	(1,381)	$	104	$	(106)	$	10,662	$	627	(f)
Liabilities
	Financial derivatives (d)				$	376		$	247						$	3			$	(242)					$	384	$	115
	Other borrowed funds								5											181						186
				Total liabilities	$	376		$	252	(e)					$	3			$	(61)					$	570	$	115	(f)
(a)			Losses for assets are bracketed while losses for liabilities are not.
(b)			PNC's policy is to recognize transfers in and transfers out as of the end of the reporting period.
(c)			The amount of the total gains or losses for the period included in earnings that is attributable to the change in unrealized gains or losses related to those assets and liabilities held at the end of the reporting period.
(d)			Includes swaps entered into in connection with sales of certain Visa Class B common shares.
(e)			Net gains (realized and unrealized) included in earnings relating to Level 3 assets and liabilities were $118 million for the third quarter of 2014, while for the first nine months of 2014 there were $246 million of net gains (realized and unrealized) included in earnings. The comparative amounts included net gains (realized and unrealized) of $208 million for third quarter 2013 and net gains (realized and unrealized) of $719 million for the first nine months of 2013. These amounts also included amortization and accretion of $37 million for the third quarter of 2014 and $122 million for the first nine months of 2014. The comparative amounts were $63 million for the third quarter of 2013 and $174 million for the first nine months of 2013. The amortization and accretion amounts were included in Interest income on the Consolidated Income Statement and the remaining net gains/(losses) (realized and unrealized) were included in Noninterest income on the Consolidated Income Statement.
(f)			Net unrealized gains relating to those assets and liabilities held at the end of the reporting period were $81 million for the third quarter of 2014, while for the first nine months of 2014
			there were $180 million of net unrealized gains. The comparative amounts included net unrealized gains of $170 million for the third quarter of 2013 and net unrealized gains of $512 million for the first nine months of 2013. These amounts were included in Noninterest income on the Consolidated Income Statement.
(g)			Settlements relating to commercial MSRs of $552 million represent the fair value as of January 1, 2014 as a result of an irrevocable election to measure all classes of commercial MSRs at fair value. Refer to Note 9 Goodwill and Other Intangible Assets for additional information on commercial MSRs.

Fair Value Measurements - Recurring Quantitative Information

Quantitative information about the significant unobservable inputs within Level 3 recurring assets and liabilities follows.

Table 83: Fair Value Measurements - Recurring Quantitative Information

September 30, 2014

Level 3 Instruments Only

Dollars in millions

Fair Value

Valuation Techniques

Unobservable Inputs

Range (Weighted Average)

Residential mortgage-backed

non-agency securities

4,911

Priced by a third-party vendor

Constant prepayment rate (CPR)

1.0%-28.9% (6.8%)

(a)

using a discounted cash flow

Constant default rate (CDR)

0%-17.5% (5.9%)

(a)

pricing model (a)

Loss severity

6.1%-96.4% (53.1%)

(a)

Spread over the benchmark curve (b)

213bps weighted average

(a)

Asset-backed securities

592

Priced by a third-party vendor

Constant prepayment rate (CPR)

1.0%-15.7% (6.1%)

(a)

using a discounted cash flow

Constant default rate (CDR)

1.7%-13.9% (7.8%)

(a)

pricing model (a)

Loss severity

14.6%-100% (73.0%)

(a)

Spread over the benchmark curve (b)

304bps weighted average

(a)

State and municipal securities

133

Discounted cash flow

Spread over the benchmark curve (b)

50bps-160bps (62bps)

213

Consensus pricing (c)

Credit and Liquidity discount

0%-25.0% (2.2%)

Other debt securities

Consensus pricing (c)

Credit and Liquidity discount

7.0%-95.0% (88.4%)

Trading securities - Debt

Consensus pricing (c)

Credit and Liquidity discount

2.0%-20.0% (2.7%)

Residential mortgage servicing rights

978

Discounted cash flow

Constant prepayment rate (CPR)

3.6%-42.0% (9.1%)

Spread over the benchmark curve (b)

889bps-1,889bps (1,037bps)

Commercial mortgage servicing

532

Discounted cash flow

Constant prepayment rate (CPR)

8.5%-14.7% (9.2%)

rights

Discount rate

4.2%-8.8% (6.7%)

Commercial mortgage loans held

867

Discounted cash flow

Spread over the benchmark curve (b)

36bps-17,420bps (1,591bps)

for sale

Estimated servicing cash flows

0.0%-2.6% (1.8%)

Equity investments - Direct investments

1,235

Multiple of adjusted earnings

Multiple of earnings

3.2x-15.0x (7.7x)

Equity investments - Indirect (d)

553

Net asset value

Loans - Residential real estate

122

Consensus pricing (c)

Cumulative default rate

2.0%-100% (91.0%)

Loss severity

0%-100% (39.4%)

Discount rate

5.0%-7.0% (6.4%)

147

Discounted cash flow

Loss severity

8.0% weighted average

Discount rate

10.0% weighted average

Loans - Home equity

114

Consensus pricing (c)

Credit and Liquidity discount

36.0%-99.0% (58.0%)

BlackRock Series C Preferred Stock

345

Consensus pricing (c)

Liquidity discount

20.0%

BlackRock LTIP

(345)

Consensus pricing (c)

Liquidity discount

20.0%

Swaps related to sales of certain Visa

(146)

Discounted cash flow

Estimated conversion factor of

Class B common shares

Class B shares into Class A shares

41.1%

Estimated growth rate of Visa

Class A share price

14.9%

Other borrowed funds - non-agency

securitization

(167)

Consensus pricing (c)

Credit and Liquidity discount

0%-99.0% (20.0%)

Spread over the benchmark curve (b)

98bps

Insignificant Level 3 assets, net of

liabilities (e)

Total Level 3 assets, net of liabilities (f)

10,169

December 31, 2013

Level 3 Instruments Only

Dollars in millions

Fair Value

Valuation Techniques

Unobservable Inputs

Range (Weighted Average)

Residential mortgage-backed

non-agency securities

5,358

Priced by a third-party vendor

Constant prepayment rate (CPR)

1.0%-32.1% (6.0%)

(a)

using a discounted cash flow

Constant default rate (CDR)

0%-21.9% (6.6%)

(a)

pricing model (a)

Loss severity

6.1%-92.9% (52.3%)

(a)

Spread over the benchmark curve (b)

237bps weighted average

(a)

Asset-backed securities

641

Priced by a third-party vendor

Constant prepayment rate (CPR)

1.0%-11.1% (5.0%)

(a)

using a discounted cash flow

Constant default rate (CDR)

1.0%-13.9% (8.7%)

(a)

pricing model (a)

Loss severity

10.0%-100% (70.1%)

(a)

Spread over the benchmark curve (b)

326bps weighted average

(a)

State and municipal securities

132

Discounted cash flow

Spread over the benchmark curve (b)

80bps-240bps (97bps)

201

Consensus pricing (c)

Credit and Liquidity discount

0%-25.0% (8.3%)

Other debt securities

Consensus pricing (c)

Credit and Liquidity discount

7.0%-95.0% (88.4%)

Trading securities - Debt

Consensus pricing (c)

Credit and Liquidity discount

0%-20.0% (8.3%)

Residential mortgage servicing rights

1,087

Discounted cash flow

Constant prepayment rate (CPR)

2.2%-32.9% (7.6%)

Spread over the benchmark curve (b)

889bps-1,888bps (1,024bps)

Commercial mortgage loans held

for sale

586

Discounted cash flow

Spread over the benchmark curve (b)

460bps-6,655bps (972bps)

Equity investments - Direct investments

1,069

Multiple of adjusted earnings

Multiple of earnings

4.5x-10.8x (7.2x)

Equity investments - Indirect (d)

595

Net asset value

Loans - Residential real estate

225

Consensus pricing (c)

Cumulative default rate

2.0%-100% (80.0%)

Loss severity

0%-100% (48.4%)

Discount rate

12.0%-13.0% (12.2%)

179

Discounted cash flow

Loss severity

8.0% weighted average

Discount rate

10.0% weighted average

Loans - Home equity

123

Consensus pricing (c)

Credit and Liquidity discount

36.0%-99.0% (55.0%)

BlackRock Series C Preferred Stock

332

Consensus pricing (c)

Liquidity discount

20.0%

BlackRock LTIP

(332)

Consensus pricing (c)

Liquidity discount

20.0%

Swaps related to sales of certain

(90)

Discounted cash flow

Estimated conversion factor of

Visa Class B common shares

Class B shares into Class A shares

41.7%

Estimated growth rate of Visa Class

A share price

8.6%

Other borrowed funds - non-agency

securitization

(184)

Consensus pricing (c)

Credit and Liquidity discount

0%-99.0% (18.0%)

Spread over the benchmark curve (b)

13bps

Insignificant Level 3 assets, net of

liabilities (e)

Total Level 3 assets, net of liabilities (f)

10,012

(a)

Level 3 residential mortgage-backed non-agency and asset-backed securities with fair values as of September 30, 2014 totaling $4,256 million and $561 million, respectively, were priced by a third-party vendor using a discounted cash flow pricing model that incorporates consensus pricing, where available. The comparable amounts as of December 31, 2013 were $4,672 million and $610 million, respectively. The significant unobservable inputs for these securities were provided by the third-party vendor and are disclosed in the table. Our procedures to validate the prices provided by the third-party vendor related to these securities are discussed further in the Fair Value Measurement section of Note 9 Fair Value in our Notes To Consolidated Financial Statements under Item 8 of our 2013 Form 10-K. Certain Level 3 residential mortgage-backed non-agency and asset-backed securities with fair values as of September 30, 2014 of $655 million and $31 million, respectively, were valued using a pricing source, such as a dealer quote or comparable security price, for which the significant unobservable inputs used to determine the price were not reasonably available. The comparable amounts as of December 31, 2013 were $686 million and $31 million, respectively.

(b)

The assumed yield spread over the benchmark curve for each instrument is generally intended to incorporate non-interest-rate risks such as credit and liquidity risks.

(c)

Consensus pricing refers to fair value estimates that are generally internally developed using information such as dealer quotes or other third-party provided valuations or comparable asset prices.

(d)

The range on these indirect equity investments has not been disclosed since these investments are recorded at their net asset redemption values.

(e)

Represents the aggregate amount of Level 3 assets and liabilities measured at fair value on a recurring basis that are individually and in the aggregate insignificant. The amount includes certain financial derivative assets and liabilities, residential mortgage loans held for sale, other assets and other borrowed funds (ROAPs). For additional information, please see the Fair Value Measurement discussion included in Note 9 Fair Value in our Notes To Consolidated Financial Statements under Item 8 of our 2013 Form 10-K.

(f)

Consisted of total Level 3 assets of $10,848 million and total Level 3 liabilities of $679 million as of September 30, 2014 and $10,650 million and $638 million as of December 31, 2013, respectively.

Fair Value Measurements - Nonrecurring

Table 84: Fair Value Measurements - Nonrecurring

								Gains (Losses)				Gains (Losses)
				Fair Value (a)				Three months ended				Nine months ended
			September 30		December 31		September 30		September 30		September 30		September 30
In millions			2014		2013		2014		2013		2014		2013
Assets
	Nonaccrual loans		$	36	$	35	$	(3)	$	(11)	$	(12)	$	(8)
	Loans held for sale (b)			8		224				(10)				(10)
	Equity investments			7		6
	Commercial mortgage servicing rights (c)					543				6				79
	OREO and foreclosed assets			166		181		(7)		(15)		(16)		(36)
	Long-lived assets held for sale			23		51		(2)		(7)		(12)		(34)
		Total assets	$	240	$	1,040	$	(12)	$	(37)	$	(40)	$	(9)
(a)		All Level 3 as of September 30, 2014 and December 31, 2013, except for $8 million included in Loans held for sale which was categorized as Level 2 as of September 30, 2014.
(b)		As of September 1, 2014, PNC elected to account for certain agency loans held for sale at fair value. Accordingly, beginning on September 1, 2014, all new commercial mortgage loans held for sale originated for sale to the agencies are measured at fair value on a recurring basis.
(c)		As of January 1, 2014, PNC made an irrevocable election to measure all classes of commercial MSRs at fair value. Accordingly, beginning with the first quarter of 2014, commercial MSRs are measured at fair value on a recurring basis.

Fair Value Measurements - Nonrecurring Quantitative Information

Quantitative information about the significant unobservable inputs within Level 3 nonrecurring assets follows.

Table 85: Fair Value Measurements - Nonrecurring Quantitative Information

Level 3 Instruments Only

Dollars in millions

Fair Value

Valuation Techniques

Unobservable Inputs

Range (Weighted Average)

September 30, 2014

Assets

Nonaccrual loans (a)

LGD percentage (b)

Loss severity

1.2%-89.3% (50.6%)

Equity investments

Discounted cash flow

Market rate of return

4.3%

Other (c)

200

Fair value of property or collateral

Appraised value/sales price

Not meaningful

Total Assets

232

December 31, 2013

Assets

Nonaccrual loans (a)

LGD percentage (b)

Loss severity

7.0%-84.9% (36.6%)

Loans held for sale (d)

224

Discounted cash flow

Spread over the benchmark curve (e)

35bps-220bps (144bps)

Estimated servicing cash flows

.8%-3.5% (2.0%)

Equity investments

Discounted cash flow

Market rate of return

6.5%

Commercial mortgage

543

Discounted cash flow

Constant prepayment rate (CPR)

7.1%-11.8% (7.7%)

servicing rights (f)

Discount rate

5.4%-7.6% (6.7%)

Other (c)

246

Fair value of property or collateral

Appraised value/sales price

Not meaningful

Total Assets

1,040

(a)

The fair value of nonaccrual loans included in this line item is determined based on internal loss rates. The fair value of nonaccrual loans where the fair value is determined based on the appraised value or sales price is included within Other, below.

(b)

LGD percentage represents the amount that PNC expects to lose in the event a borrower defaults on an obligation.

(c)

Other included Nonaccrual loans of $11 million, OREO and foreclosed assets of $166 million and Long-lived assets held for sale of $23 million as of September 30, 2014. Comparably, as of December 31, 2013, Other included Nonaccrual loans of $14 million, OREO and foreclosed assets of $181 million and Long-lived assets held for sale of $51 million. The fair value of these assets is determined based on appraised value or sales price, the range of which is not meaningful to disclose.

(d)

As of September 1, 2014, PNC elected to account for certain agency loans held for sale at fair value. Accordingly, beginning on September 1, 2014, all new commercial mortgage loans held for sale originated for sale to the agencies are measured at fair value on a recurring basis.

(e)

The assumed yield spread over benchmark curve for each instrument is generally intended to incorporate non-interest-rate risks such as credit and liquidity risks.

(f)

As of January 1, 2014, PNC made an irrevocable election to measure all classes of commercial MSRs at fair value. Accordingly, beginning with the first quarter of 2014, commercial MSRs are measured at fair value on a recurring basis.

Fair Value Option - Changes in Fair Value

Table 86: Fair Value Option - Changes in Fair Value (a)

			Gains (Losses)				Gains (Losses)
			Three months ended				Nine months ended
			September 30		September 30		September 30		September 30
In millions			2014		2013		2014		2013
Assets
	Customer resale agreements		$	(2)			$	(3)	$	(5)
	Trading loans							1		2
	Commercial mortgage loans held for sale			6	$	1		13		(11)
	Residential mortgage loans held for sale (b)			26		72		155		64
	Residential mortgage loans – portfolio (b)			26		13		113		45
	BlackRock Series C Preferred Stock			10		14		13		74
Liabilities
	Other borrowed funds			(3)		(2)				(5)
(a)		The impact on earnings of offsetting hedged items or hedging instruments is not reflected in these amounts.
(b)		Prior periods were corrected for the allocation between Residential mortgage loans held for sale and Residential mortgage loans - portfolio. This resulted in a decrease of $29 million from gains on Residential mortgage loans held for sale and an increase of $22 million to gains on Residential mortgage loans - portfolio for the nine months ended September 30, 2013. The impacts to amounts for the three months ended September 30, 2013 were not significant.

Fair Value Option - Fair Value and Principal Balances

Fair values and aggregate unpaid principal balances of items for which we elected the fair value option follow.

Table 87: Fair Value Option - Fair Value and Principal Balances

							Aggregate Unpaid
In millions				Fair Value			Principal Balance		Difference
September 30, 2014
Assets
	Customer resale agreements				$	191	$	183	$	8
	Trading loans					35		35
	Residential mortgage loans held for sale
		Performing loans				1,174		1,125		49
		Accruing loans 90 days or more past due				4		4
		Nonaccrual loans				9		10		(1)
			Total			1,187		1,139		48
	Commercial mortgage loans held for sale (a)
		Performing loans				865		943		(78)
		Nonaccrual loans				2		3		(1)
			Total			867		946		(79)
	Residential mortgage loans - portfolio
		Performing loans				205		289		(84)
		Accruing loans 90 days or more past due (b)				551		551
		Nonaccrual loans				261		464		(203)
			Total			1,017		1,304		(287)
Liabilities
	Other borrowed funds				$	274	$	319	$	(45)
December 31, 2013
Assets
	Customer resale agreements				$	207	$	196	$	11
	Trading loans					6		6
	Residential mortgage loans held for sale
		Performing loans				1,298		1,260		38
		Accruing loans 90 days or more past due				2		2
		Nonaccrual loans				15		18		(3)
			Total			1,315		1,280		35
	Commercial mortgage loans held for sale (a)
		Performing loans				583		669		(86)
		Nonaccrual loans				3		9		(6)
			Total			586		678		(92)
	Residential mortgage loans - portfolio (c)
		Performing loans				233		332		(99)
		Accruing loans 90 days or more past due (b)				552		626		(74)
		Nonaccrual loans				365		598		(233)
		Total				1,150		1,556		(406)
Liabilities
	Other borrowed funds (c)				$	309	$	353	$	(44)
(a)	There were no accruing loans 90 days or more past due within this category at September 30, 2014 or December 31, 2013.
(b)	Included in this population are government insured loans and non-government insured home equity loans. Loans that are insured by the government result in a higher fair value than those that do not have that guarantee.
(c)	Prior period amounts were corrected to include transferred loans over which PNC regained effective control and the related liabilities that are recorded pursuant to ASC 860.

Additional Fair Value Information Related to Financial Instruments

The following table provides additional information regarding the fair value and classification within the fair value hierarchy of financial instruments.

Table 88: Additional Fair Value Information Related to Financial Instruments

		Carrying		Fair Value
In millions		Amount			Total			Level 1		Level 2		Level 3
September 30, 2014
Assets
Cash and due from banks		$	4,164	$	4,164		$	4,164
Short-term assets			28,981		28,981				$	28,981
Trading securities			2,650		2,650			1,353		1,263	$	34
Investment securities			55,039		55,331			5,369		44,071		5,891
Trading loans			35		35					35
Loans held for sale			2,143		2,144					1,224		920
Net loans (excludes leases)			189,649		191,160					634		190,526
Other assets			4,303		4,862	(a)		188		1,885		2,789
Financial derivatives
	Designated as hedging instruments under GAAP		1,026		1,026					1,026
	Not designated as hedging instruments under GAAP		3,325		3,325			2		3,294		29
	Total Assets	$	291,315	$	293,678		$	11,076	$	82,413	$	200,189

Liabilities
Demand, savings and money market deposits		$	204,448	$	204,448				$	204,448
Time deposits			21,856		21,821					21,821
Borrowed funds			52,625		53,439		$	1,352		50,510	$	1,577
Financial derivatives
	Designated as hedging instruments under GAAP		233		233					233
	Not designated as hedging instruments under GAAP		3,314		3,314			2		2,813		499
Unfunded loan commitments and letters of credit			232		232							232
	Total Liabilities	$	282,708	$	283,487		$	1,354	$	279,825	$	2,308
December 31, 2013
Assets
Cash and due from banks		$	4,043	$	4,043		$	4,043
Short-term assets			15,113		15,113				$	15,113
Trading securities			3,073		3,073			2,179		862	$	32
Investment securities			60,294		60,372			4,120		49,865		6,387
Trading loans			6		6					6
Loans held for sale			2,255		2,256					1,307		949
Net loans (excludes leases)			184,305		185,887					513		185,374
Other assets			4,162		4,975	(a)		209		1,791		2,975
Financial derivatives
	Designated as hedging instruments under GAAP		1,189		1,189					1,189
	Not designated as hedging instruments under GAAP		3,604		3,604			25		3,543		36
	Total Assets	$	278,044	$	280,518		$	10,576	$	74,189	$	195,753

Liabilities
Demand, savings and money market deposits		$	197,465	$	197,465				$	197,465
Time deposits			23,466		23,487					23,487
Borrowed funds			46,427		47,258		$	1,341		44,431	$	1,486
Financial derivatives
	Designated as hedging instruments under GAAP		364		364					364
	Not designated as hedging instruments under GAAP		3,570		3,570			6		3,125		439
Unfunded loan commitments and letters of credit			224		224							224
	Total Liabilities	$	271,516	$	272,368		$	1,347	$	268,872	$	2,149
(a)	Includes $648 million for Visa Class B common shares, which was estimated solely based upon the September 30, 2014 closing price for the Visa Class A common shares and the current Visa Class B common shares conversion rate, which reflects adjustments in respect of all litigation funding by Visa to date. The Class B common shares are transferable only under limited circumstances, which could impact the aforementioned estimate, until they can be converted into Class A common shares. The comparable amount at December 31, 2013 was $971 million. For additional information, see Note 24 Commitments and Guarantees in our Notes To Consolidated Financial Statements under Item 8 of our 2013 Form 10-K.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References+ Details

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References+ Details

- Definition

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, provide the aggregate carrying amount of ineligible items included in each line item in the balance sheet, if any; (b) the difference between the aggregate fair value and the aggregate unpaid principal balance (assuming contractual principal amounts and fair value option elected) of: (i) loans and long-term receivables (other than securities otherwise reported at fair value) and (ii) long-term debt instruments; (c) for loans held as assets for which the fair value option has been elected: (i) the aggregate fair value of loans that are 90 days or more past due, (ii) if the policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status, and (iii) the difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both; (2) for items included in the income statement: (a) the amounts of gains and losses from fair value changes included in earnings and in which line in the income statement those gains and losses are reported whether or not combined with gains and losses from items required to be accounted for at fair value; (b) for loans and other receivables held as assets, the estimated amount of gains or losses included in earnings attributable to changes in instrument-specific credit risk; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk, the estimated amount of gains and losses from fair value changes included in earnings that are attributable to changes in the instrument-specific credit risk; and (3) certain other disclosures as required or determined to be provided.

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