Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2014

Goodwill and Other Intangible Assets Disclosure [Abstract]

Goodwill by Business Segment

Note 9 Goodwill and Other Intangible Assets
Goodwill
Goodwill by business segment consisted of the following:
Table 89: Goodwill by Business Segment (a)
		September 30		December 31
In millions		2014		2013
Retail Banking		$	5,795	$	5,795
Corporate & Institutional Banking			3,215		3,215
Asset Management Group			64		64
	Total	$	9,074	$	9,074
(a)	The Residential Mortgage Banking and Non-Strategic Assets Portfolio business segments did not have any goodwill allocated to them as of September 30, 2014 and December 31, 2013.

Other Intangible Assets

Table 90: Other Intangible Assets
				September 30		December 31
In millions				2014		2013
Customer-related and other intangibles
	Gross carrying amount			$	1,671	$	1,676
	Accumulated amortization				(1,187)		(1,096)
		Net carrying amount		$	484	$	580
Mortgage servicing rights (a)
	Gross carrying amount			$	1,510	$	2,620
	Valuation allowance						(88)
	Accumulated amortization						(896)
		Net carrying amount		$	1,510	$	1,636
			Total	$	1,994	$	2,216
(a)	Upon the first quarter 2014 irrevocable election of fair value for commercial MSRs, the gross carrying amount of MSRs as of September 30, 2014 represents the fair value of both classes of MSRs.

Amortization Expense on Existing Intangible Assets

Table 91: Amortization Expense on Existing Intangible Assets
In millions
Nine months ended September 30, 2014		$	96
Nine months ended September 30, 2013 (a)			187
Remainder of 2014			31
2015			110
2016			93
2017			79
2018			68
2019			57
(a)	Includes amortization expense recorded during the first nine months of 2013 for commercial MSRs. As of January 1, 2014, PNC made an irrevocable election to measure commercial MSRs at fair value, and, accordingly, amortization expense for commercial MSRs is no longer recorded.

Summary Of Changes In Customer-Related and Other Intangible Assets

Table 92: Summary of Changes in Customer-Related and Other Intangible Assets
	Customer-
In millions	Related
December 31, 2013	$	580
Amortization		(96)
September 30, 2014	$	484

Commercial Mortgage Servicing Rights

Changes in commercial MSRs during the first nine months of 2013, prior to the irrevocable fair value election, follow:
Table 94: Commercial Mortgage Servicing Rights Accounted for Under the Amortization Method
In millions		2013
Commercial Mortgage Servicing Rights – Net Carrying Amount
January 1		$	420
Additions (a)			119
Amortization expense			(77)
Change in valuation allowance			79
	September 30	$	541
Commercial Mortgage Servicing Rights – Valuation Allowance
January 1		$	(176)
Provision			(18)
Recoveries			96
Other			1
	September 30	$	(97)
(a)	Additions for the first nine months of 2013 included $45 million from loans sold with servicing retained and $74 million from purchases of servicing rights from third parties.

Commercial and Residential Mortgage Servicing Rights

Changes in commercial MSRs accounted for at fair value during the first nine months of 2014 follow:
Table 93: Commercial Mortgage Servicing Rights Accounted for at Fair Value
In millions		2014
January 1		$	552
Additions:
	From loans sold with servicing retained		36
	Purchases		32
Changes in fair value due to:
	Time and payoffs (a)		(68)
	Other (b)		(20)
September 30		$	532
Unpaid principal balance of loans serviced for others at September 30		$	143,449
(a)	Represents decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period.
(b)	Represents MSR value changes resulting primarily from market-driven changes in interest rates.

Changes in the residential MSRs follow:
Table 95: Residential Mortgage Servicing Rights
In millions		2014		2013
January 1		$	1,087	$	650
Additions:
	From loans sold with servicing retained		66		129
	Purchases		45		86
Changes in fair value due to:
	Time and payoffs (a)		(100)		(158)
	Other (b)		(120)		330
September 30		$	978	$	1,037
Unpaid principal balance of loans serviced for others at September 30		$	110,749	$	115,034
(a)	Represents decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period.
(b)	Represents MSR value changes resulting primarily from market-driven changes in interest rates.

Commercial Mortgage Loan Servicing Assets - Key Valuation Assumptions

Table 96: Commercial Mortgage Loan Servicing Rights - Key Valuation Assumptions
		September 30			December 31
Dollars in millions		2014			2013
Fair Value		$	532		$	552
Weighted-average life (years)			5.0			5.3
Weighted-average constant prepayment rate			9.23	%		7.52	%
	Decline in fair value from 10% adverse change	$	11		$	12
	Decline in fair value from 20% adverse change	$	21		$	23
Effective discount rate			6.67	%		6.91	%
	Decline in fair value from 10% adverse change	$	15		$	18
	Decline in fair value from 20% adverse change	$	30		$	35

Residential Mortgage Loan Servicing Assets - Key Valuation Assumptions

Table 97: Residential Mortgage Loan Servicing Rights - Key Valuation Assumptions
		September 30			December 31
Dollars in millions		2014			2013
Fair value		$	978		$	1,087
Weighted-average life (years)			7.0			7.9
Weighted-average constant prepayment rate			9.09	%		7.61	%
	Decline in fair value from 10% adverse change	$	36		$	34
	Decline in fair value from 20% adverse change	$	69		$	67
Weighted-average option adjusted spread			10.37	%		10.24	%
	Decline in fair value from 10% adverse change	$	39		$	47
	Decline in fair value from 20% adverse change	$	75		$	91

Fees from Mortgage Loan Servicing

Table 98: Fees from Mortgage Loan Servicing
In millions	2014		2013
Nine months ended September 30	$	381	$	411
Three months ended September 30		125		137