Fair Value (Tables)

6 Months Ended

Jun. 30, 2015

Fair Value Measurements - Recurring Basis Summary

Table 74: Fair Value Measurements - Recurring Basis Summary

					June 30, 2015								December 31, 2014
											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		$	5,476	$	619			$	6,095	$	4,795	$	627			$	5,422
		Residential mortgage-backed
			Agency				20,842				20,842				18,043				18,043
			Non-agency				128	$	4,424		4,552				144	$	4,798		4,942
		Commercial mortgage-backed
			Agency				1,994				1,994				2,187				2,187
			Non-agency				4,422				4,422				4,162				4,162
		Asset-backed					4,904		531		5,435				4,624		563		5,187
		State and municipal					2,042		16		2,058				1,904		134		2,038
		Other debt					1,821		33		1,854				1,783		30		1,813
			Total debt securities		5,476		36,772		5,004		47,252		4,795		33,474		5,525		43,794
		Corporate stocks and other			365		62				427		426		15				441
			Total securities available for sale		5,841		36,834		5,004		47,679		5,221		33,489		5,525		44,235
	Financial derivatives (a) (b)
		Interest rate contracts			5		4,560		34		4,599		4		4,874		40		4,918
		Other contracts					250		2		252				314		2		316
			Total financial derivatives		5		4,810		36		4,851		4		5,188		42		5,234
	Residential mortgage loans held for sale (c)						1,354		10		1,364				1,255		6		1,261
	Trading securities (d)
		Debt (e)			1,048		1,272		3		2,323		1,340		960		32		2,332
		Equity			11						11		21						21
			Total trading securities		1,059		1,272		3		2,334		1,361		960		32		2,353
	Trading loans (a)						48				48				30		7		37
	Residential mortgage servicing rights (f)								1,015		1,015						845		845
	Commercial mortgage servicing rights (f)								543		543						506		506
	Commercial mortgage loans held for sale (c)								757		757						893		893
	Equity investments (a)
		Direct investments							1,191		1,191						1,152		1,152
		Indirect investments (g)							425		425						469		469
			Total equity investments						1,616		1,616						1,621		1,621
	Customer resale agreements (h)						150				150				155				155
	Loans (i)						576		365		941				637		397		1,034
	Other assets (a)
		BlackRock Series C Preferred Stock (j)							363		363						375		375
		Other			248		186		7		441		190		226		8		424
			Total other assets		248		186		370		804		190		226		383		799
		Total assets		$	7,153	$	45,230	$	9,719	$	62,102	$	6,776	$	41,940	$	10,257	$	58,973
Liabilities
	Financial derivatives (b) (k)
		Interest rate contracts		$	3	$	3,101	$	8	$	3,112			$	3,260	$	12	$	3,272
		BlackRock LTIP							363		363						375		375
		Other contracts					225		127		352				241		139		380
			Total financial derivatives		3		3,326		498		3,827				3,501		526		4,027
	Trading securities sold short (l)
		Debt			1,410		19				1,429	$	1,479		11				1,490
			Total trading securities sold short		1,410		19				1,429		1,479		11				1,490
	Other borrowed funds (l)						59		165		224				92		181		273
	Other liabilities (k)						3		10		13						9		9
		Total liabilities		$	1,413	$	3,407	$	673	$	5,493	$	1,479	$	3,604	$	716	$	5,799
(a)		Included in Other assets on our Consolidated Balance Sheet.
(b)		Amounts at June 30, 2015 and December 31, 2014 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. At both June 30, 2015 and December 31, 2014, the net asset amounts were $2.6 billion and the net liability amounts were $1.4 billion.
(c)		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.
(d)		Fair value includes net unrealized gains of $18 million at June 30, 2015 compared with net unrealized gains of $54 million at December 31, 2014.
(e)		Approximately 37% of these securities are residential mortgage-backed securities and 45% are U.S. Treasury and government agencies securities at June 30, 2015. Comparable amounts at December 31, 2014 were 34% and 57%, respectively.
(f)		Included in Other intangible assets on our Consolidated Balance Sheet.
(g)		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 as of June 30, 2015 related to indirect equity investments was $118 million and related to direct equity investments was $26 million, respectively. Comparable amounts at December 31, 2014 were $112 million and $28 million, respectively.
(h)		Included in Federal funds sold and resale agreements on our Consolidated Balance Sheet. PNC has elected the fair value option for these items.
(i)		Included in Loans on our Consolidated Balance Sheet.
(j)		PNC has elected the fair value option for these shares.
(k)		Included in Other liabilities on our Consolidated Balance Sheet.
(l)		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 and six months ended June 30, 2015 and 2014 follow:

Table 75: Reconciliation of Level 3 Assets and Liabilities

Three Months Ended June 30, 2015

																											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				March 31,			Included in			comprehensive										into		out of		June 30,		at June 30,
In millions					2015			Earnings			income		Purchases		Sales		Issuances		Settlements		Level 3 (b)		Level 3 (b)		2015		2015 (c)
Assets
	Securities available for
		sale
		Residential mortgage-
			backed non-agency		$	4,624		$	30		$	(8)							$	(222)					$	4,424
		Commercial mortgage-
			backed non-agency						1											(1)
		Asset-backed				548			5			5								(27)						531
		State and municipal				133														(117)						16
		Other debt				33																				33
			Total securities
				available for sale		5,338			36			(3)								(367)						5,004
	Financial derivatives					54			16											(34)						36	$	33
	Residential mortgage
		loans held for sale				7							$	11	$	(2)				(1)	$	1	$	(6)		10
	Trading securities - Debt					3																				3
	Trading loans					2										(2)
	Residential mortgage
		servicing rights				839			135					67			$	21		(47)						1,015		134
	Commercial mortgage
		servicing rights				494			34					17				20		(22)						543		34
	Commercial mortgage
		loans held for sale				975			23							(56)		1,008		(1,193)						757
	Equity investments
		Direct investments				1,149			27					95		(80)										1,191		22
		Indirect investments				442			21					5		(43)										425		20
			Total equity
				investments		1,591			48					100		(123)										1,616		42
	Loans					383			5					23		(4)				(35)		6		(13)		365		1
	Other assets
		BlackRock Series C
			Preferred Stock			384			(21)																	363		(21)
		Other				8														(1)						7
			Total other assets			392			(21)											(1)						370		(21)
				Total assets	$	10,078		$	276	(e)	$	(3)	$	218	$	(187)	$	1,049	$	(1,700)	$	7	$	(19)	$	9,719	$	223	(f)
Liabilities
	Financial derivatives (d)				$	529		$	(15)						$	1			$	(17)					$	498	$	(25)
	Other borrowed funds					171			3								$	21		(30)						165
	Other liabilities					10																				10
				Total liabilities	$	710		$	(12)	(e)					$	1	$	21	$	(47)					$	673	$	(25)	(f)

Three Months Ended June 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				March 31,			Included in			comprehensive										into		out of		June 30,		at June 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		$	5,234		$	40		$	31							$	(198)					$	5,107	$	(1)
		Asset-backed				642			4											(27)						619
		State and municipal				331						13								1						345
		Other debt				32							$	1	$	(1)				(1)						31
			Total securities
				available for sale		6,239			44			44		1		(1)				(225)						6,102		(1)
	Financial derivatives					30			59					1						(49)						41		47
	Residential mortgage
		loans held for sale				5			1					3		(1)				(1)	$	1	$	(4)		4		1
	Trading securities - Debt					32			1																	33		2
	Residential mortgage
		servicing rights				1,039			(57)								$	20		(35)						967		(57)
	Commercial mortgage
		servicing rights				529			(11)					9				10		(22)						515		(11)
	Commercial mortgage
		loans held for sale				577			5											(61)						521		5
	Equity investments
		Direct investments				1,163			38					99		(81)										1,219		30
		Indirect investments				594			15					6		(39)				(2)						574		14
			Total equity
				investments		1,757			53					105		(120)				(2)						1,793		44
	Loans (g)					518			10					25		(132)				(26)		3		(25)		373		8
	Other assets
		BlackRock Series C
			Preferred Stock			330			5																	335		5
		Other				8																				8
			Total other assets			338			5																	343		5
				Total assets	$	11,064		$	110	(e)	$	44	$	144	$	(254)	$	30	$	(421)	$	4	$	(29)	$	10,692	$	43	(f)
Liabilities
	Financial derivatives (d)				$	440		$	30										$	(16)					$	454	$	16
	Other borrowed funds (g)					193			(7)								$	10		(13)						183
				Total liabilities	$	633		$	23	(e)							$	10	$	(29)					$	637	$	16	(f)

Six Months Ended June 30, 2015

																												Unrealized
								Total realized / unrealized																				gains (losses)
								gains or losses for the period (a)																				on assets and
												Included																liabilities held on
Level 3 Instruments					Fair Value							in Other										Transfers		Transfers		Fair Value		Consolidated
	Only				Dec. 31,				Included in			comprehensive										into		out of		June 30,		Balance Sheet
In millions					2014				Earnings			income		Purchases		Sales		Issuances		Settlements		Level 3 (b)		Level 3 (b)		2015		at June 30, 2015 (c)
Assets
	Securities available for
		sale
		Residential mortgage-
			backed non-agency			$	4,798		$	55		$	(22)							$	(407)					$	4,424	$	(1)
		Commercial mortgage
			backed non-agency							8											(8)
		Asset-backed					563			11			9								(52)						531
		State and municipal					134						(1)								(117)						16
		Other debt					30			1				$	3						(1)						33
			Total securities
				available for sale			5,525			75			(14)		3						(585)						5,004		(1)
	Financial derivatives						42			87					1						(94)						36		76
	Residential mortgage
		loans held for sale					6								17	$	(2)				(1)	$	2	$	(12)		10
	Trading securities - Debt						32														(29)						3
	Trading loans						7										(7)
	Residential mortgage
		servicing rights					845			68					150			$	38		(86)						1,015		72
	Commercial mortgage
		servicing rights					506			18					28				34		(43)						543		18
	Commercial mortgage
		loans held for sale					893			44							(56)		2,091		(2,215)						757		2
	Equity investments
		Direct investments					1,152			56					138		(155)										1,191		40
		Indirect investments					469			35					8		(87)										425		33
			Total equity
				investments			1,621			91					146		(242)										1,616		73
	Loans						397			15					55		(8)				(72)		11		(33)		365		9
	Other assets
		BlackRock Series C
			Preferred Stock				375			(12)																	363		(12)
		Other					8														(1)						7
			Total other assets				383			(12)											(1)						370		(12)
				Total assets		$	10,257		$	386	(e)	$	(14)	$	400	$	(315)	$	2,163	$	(3,126)	$	13	$	(45)	$	9,719	$	237	(f)
Liabilities
	Financial derivatives (d)					$	526		$	26						$	1			$	(55)					$	498	$	(17)
	Other borrowed funds						181			3								$	46		(65)						165
	Other liabilities						9			1																	10
				Total liabilities		$	716		$	30	(e)					$	1	$	46	$	(120)					$	673	$	(17)	(f)


Six Months Ended June 30, 2014

																												Unrealized
								Total realized / unrealized																				gains (losses)
							gains or losses for the period (a)																					on assets and
											Included																	liabilities held
Level 3 Instruments					Fair Value						in Other											Transfers		Transfers		Fair Value		on Consolidated
	Only				Dec. 31,			Included in			comprehensive											into		out of		June 30,		Balance Sheet
In millions					2013			Earnings			income		Purchases		Sales		Issuances		Settlements			Level 3 (b)		Level 3 (b)		2014		at June 30, 2014 (c)
Assets
	Securities available for
		sale
		Residential mortgage-
			backed non-agency		$	5,358		$	74		$	85							$	(410)						$	5,107	$	(3)
		Asset-backed				641			8			19								(49)							619
		State and municipal				333			(2)			14															345
		Other debt				38			1				$	1	$	(7)				(2)							31
			Total securities
				available for sale		6,370			81			118		1		(7)				(461)							6,102		(3)
	Financial derivatives					36			119					1						(115)							41		80
	Residential mortgage
		loans held for sale				8			1					8		(3)				(1)		$	4	$	(13)		4		1
	Trading securities - Debt					32			1																		33		2
	Residential mortgage
		servicing rights				1,087			(116)					17			$	43		(64)							967		(114)
	Commercial mortgage
		servicing rights							(25)					16				17		507	(h)						515		(25)
	Commercial mortgage
		loans held for sale				586			7											(72)							521		7
	Equity investments
		Direct investments				1,069			72					168		(90)											1,219		63
		Indirect investments				595			33					12		(65)				(1)							574		31
			Total equity
				investments		1,664			105					180		(155)				(1)							1,793		94
	Loans (g)					527			19					24		(138)				(47)			42		(54)		373		14
	Other assets
		BlackRock Series C
			Preferred Stock			332			3																		335		3
		Other				8																					8
			Total other assets			340			3																		343		3
				Total assets	$	10,650		$	195	(e)	$	118	$	247	$	(303)	$	60	$	(254)		$	46	$	(67)	$	10,692	$	59	(f)
Liabilities
	Financial derivatives (d)				$	439		$	70						$	1			$	(56)						$	454	$	22
	Other borrowed funds (g)					199			(3)								$	19		(32)							183
				Total liabilities	$	638		$	67	(e)					$	1	$	19	$	(88)						$	637	$	22	(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 $288 million for the second quarter of 2015, while for the first six months of 2015 there were $356 million of net gains (realized and unrealized) included in earnings. The comparative amounts included net gains (realized and unrealized) of $87 million for the second quarter of 2014 and net gains (realized and unrealized) of $128 million for the first six months of 2014. These amounts also included amortization and accretion of $37 million for the second quarter of 2015 and $77 million for the first six months of 2015. The comparative amounts were $44 million for the second quarter of 2014 and $85 million for the first six months of 2014. 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 $248 million for the second quarter of 2015, while for the first six months of 2015 there were $254 million of net unrealized gains. The comparative amounts included net unrealized gains of $27 million for the second quarter of 2014 and net unrealized gains of $37 million for the first six months of 2014. These amounts were included in Noninterest income on the Consolidated Income Statement.
(g)			These line items were corrected for the three and six months ended June 30, 2014 to include transferred loans over which PNC regained effective control and the related liabilities that are recorded pursuant to ASC 860.
(h)			Settlements relating to commercial MSRs include $552 million, which represents 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 8 Goodwill and Other Intangible Assets in our 2014 Form 10-K for additional information on this election.

Fair Value Measurements - Recurring Quantitative Information

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

Table 76: Fair Value Measurements - Recurring Quantitative Information

June 30, 2015

Level 3 Instruments Only

Dollars in millions

Fair Value

Valuation Techniques

Unobservable Inputs

Range (Weighted Average)

Residential mortgage-backed

non-agency securities

4,424

Priced by a third-party vendor

Constant prepayment rate (CPR)

1.0%-24.2% (6.9%)

(a)

using a discounted cash flow

Constant default rate (CDR)

0.0%-16.7% (5.4%)

(a)

pricing model (a)

Loss severity

10.0%-98.5% (53.1%)

(a)

Spread over the benchmark curve (b)

242bps weighted average

(a)

Asset-backed securities

531

Priced by a third-party vendor

Constant prepayment rate (CPR)

1.0%-15.7% (6.4%)

(a)

using a discounted cash flow

Constant default rate (CDR)

1.7%-13.9% (6.9%)

(a)

pricing model (a)

Loss severity

15.0%-100% (76.4%)

(a)

Spread over the benchmark curve (b)

308bps weighted average

(a)

Other debt securities

Consensus pricing (c)

Credit and Liquidity discount

7.0%-100.0% (88.4%)

Residential mortgage servicing rights

1,015

Discounted cash flow

Constant prepayment rate (CPR)

0.3%-38.4% (9.7%)

Spread over the benchmark curve (b)

558bps-1,861bps (966bps)

Commercial mortgage servicing

543

Discounted cash flow

Constant prepayment rate (CPR)

4.8%-13.8% (5.9%)

rights

Discount rate

3.5%-9.1% (7.6%)

Commercial mortgage loans held

757

Discounted cash flow

Spread over the benchmark curve (b)

32bps-3,115bps (455bps)

for sale

Estimated servicing cash flows

0.0%-5.2% (2.5%)

Equity investments - Direct investments

1,191

Multiple of adjusted earnings

Multiple of earnings

4.2x-14.0x (7.7x)

Equity investments - Indirect (d)

425

Net asset value

Loans - Residential real estate

123

Consensus pricing (c)

Cumulative default rate

2.0%-100% (86.6%)

Loss severity

0.0%-100% (30.2%)

Discount rate

4.9%-7.0% (5.1%)

123

Discounted cash flow

Loss severity

8.0% weighted average

Discount rate

3.5% weighted average

Loans - Home equity

119

Consensus pricing (c)

Credit and Liquidity discount

26.0%-99.0% (52.0%)

BlackRock Series C Preferred Stock

363

Consensus pricing (c)

Liquidity discount

20.0%

BlackRock LTIP

(363)

Consensus pricing (c)

Liquidity discount

20.0%

Swaps related to sales of certain Visa

(122)

Discounted cash flow

Estimated conversion factor of

Class B common shares

Class B shares into Class A shares

164.3%

(e)

Estimated growth rate of Visa

Class A share price

17.3%

Other borrowed funds - non-agency

securitization

(154)

Consensus pricing (c)

Credit and Liquidity discount

0%-99.0% (18.0%)

Spread over the benchmark curve (b)

112bps

Insignificant Level 3 assets, net of

liabilities (f)

Total Level 3 assets, net of liabilities (g)

9,046

December 31, 2014

Level 3 Instruments Only

Dollars in millions

Fair Value

Valuation Techniques

Unobservable Inputs

Range (Weighted Average)

Residential mortgage-backed

non-agency securities

4,798

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)

0.0%-16.7% (5.6%)

(a)

pricing model (a)

Loss severity

6.1%-100.0% (53.1%)

(a)

Spread over the benchmark curve (b)

249bps weighted average

(a)

Asset-backed securities

563

Priced by a third-party vendor

Constant prepayment rate (CPR)

1.0%-15.7% (5.9%)

(a)

using a discounted cash flow

Constant default rate (CDR)

1.7%-13.9% (7.6%)

(a)

pricing model (a)

Loss severity

14.6%-100.0% (73.5%)

(a)

Spread over the benchmark curve (b)

352bps weighted average

(a)

State and municipal securities

132

Discounted cash flow

Spread over the benchmark curve (b)

55bps-165bps (67bps)

Consensus pricing (c)

Credit and Liquidity discount

0.0%-20.0% (14.9%)

Other debt securities

Consensus pricing (c)

Credit and Liquidity discount

7.0%-95.0% (88.6%)

Trading securities - Debt

Consensus pricing (c)

Credit and Liquidity discount

0.0%-15.0% (8.0%)

Residential mortgage servicing rights

845

Discounted cash flow

Constant prepayment rate (CPR)

3.8%-32.7% (11.2%)

Spread over the benchmark curve (b)

889bps-1,888bps (1,036bps)

Commercial mortgage servicing rights

506

Discounted cash flow

Constant prepayment rate (CPR)

7.0%-16.8% (8.0%)

Discount rate

2.5%-8.6% (6.6%)

Commercial mortgage loans held

for sale

893

Discounted cash flow

Spread over the benchmark curve (b)

37bps-4,025bps (549bps)

Estimated servicing cash flows

0.0%-2.0% (1.2%)

Equity investments - Direct investments

1,152

Multiple of adjusted earnings

Multiple of earnings

3.2x-13.9x (7.7x)

Equity investments - Indirect (d)

469

Net asset value

Loans - Residential real estate

114

Consensus pricing (c)

Cumulative default rate

2.0%-100.0% (90.5%)

Loss severity

0.0%-100.0% (35.6%)

Discount rate

5.4%-7.0% (6.4%)

154

Discounted cash flow

Loss severity

8.0% weighted average

Discount rate

3.4% weighted average

Loans - Home equity

129

Consensus pricing (c)

Credit and Liquidity discount

26.0%-99.0% (51.0%)

BlackRock Series C Preferred Stock

375

Consensus pricing (c)

Liquidity discount

20.0%

BlackRock LTIP

(375)

Consensus pricing (c)

Liquidity discount

20.0%

Swaps related to sales of certain

(135)

Discounted cash flow

Estimated conversion factor of

Visa Class B common shares

Class B shares into Class A shares

41.1%

Estimated growth rate of Visa Class

A share price

14.8%

Other borrowed funds - non-agency

securitization

(166)

Consensus pricing (c)

Credit and Liquidity discount

0.0%-99.0% (18.0%)

Spread over the benchmark curve (b)

113bps

Insignificant Level 3 assets, net of

liabilities (f)

Total Level 3 assets, net of liabilities (g)

9,541

(a)

Level 3 residential mortgage-backed non-agency and asset-backed securities with fair values as of June 30, 2015 totaling $3,749 million and $500 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, 2014 were $4,081 million and $532 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 7 Fair Value in our 2014 Form 10-K. Certain Level 3 residential mortgage-backed non-agency and asset-backed securities with fair values as of June 30, 2015 of $675 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, 2014 were $717 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)

This conversion factor reflects the 4-for-1 split of Visa Class A common shares, which occurred during the first quarter of 2015.

(f)

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, trading securities (for the 2015 period), state and municipal securities (for the 2015 period), residential mortgage loans held for sale, trading loans, other assets, other borrowed funds (ROAPs) and other liabilities. For additional information, please see the Fair Value Measurement discussion included in Note 7 Fair Value in our 2014 Form 10-K.

(g)

Consisted of total Level 3 assets of $9,719 million and total Level 3 liabilities of $673 million as of June 30, 2015 and $10,257 million and $716 million as of December 31, 2014, respectively.

Fair Value Measurements - Nonrecurring

Table 77: Fair Value Measurements - Nonrecurring

								Gains (Losses)				Gains (Losses)
				Fair Value (a)				Three months ended				Six months ended
			June 30		December 31		June 30		June 30		June 30		June 30
In millions			2015		2014		2015		2014		2015		2014
Assets
	Nonaccrual loans		$	33	$	54	$	(15)	$	(11)	$	(15)	$	(15)
	Loans held for sale					8				(1)				(1)
	Equity investments					17				(3)				(3)
	OREO and foreclosed assets			110		168		(12)		(7)		(18)		(15)
	Long-lived assets held for sale			19		22		(5)		(6)		(13)		(9)
		Total assets	$	162	$	269	$	(32)	$	(28)	$	(46)	$	(43)
(a)		All Level 3 as of June 30, 2015 and December 31, 2014, except for $8 million included in Loans held for sale which was categorized as Level 2 as of December 31, 2014.

Fair Value Measurements - Nonrecurring Quantitative Information

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

Table 78: Fair Value Measurements - Nonrecurring Quantitative Information

Level 3 Instruments Only

Dollars in millions

Fair Value

Valuation Techniques

Unobservable Inputs

Range (Weighted Average)

June 30, 2015

Assets

Nonaccrual loans (a)

LGD percentage (b)

Loss severity

10.9%-99.2% (44.1%)

Other (c)

143

Fair value of property or collateral

Appraised value/sales price

Not meaningful

Total assets

162

December 31, 2014

Assets

Nonaccrual loans (a)

LGD percentage (b)

Loss severity

2.9%-68.5% (42.1%)

Equity investments

Discounted cash flow

Market rate of return

6.0%

Other (c)

215

Fair value of property or collateral

Appraised value/sales price

Not meaningful

Total assets

261

(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 $14 million, OREO and foreclosed assets of $110 million and Long-lived assets held for sale of $19 million as of June 30, 2015. Comparably, as of December 31, 2014, Other included Nonaccrual loans of $25 million, OREO and foreclosed assets of $168 million and Long-lived assets held for sale of $22 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.

Fair Value Option - Changes in Fair Value

Table 79: Fair Value Option - Changes in Fair Value (a)

			Gains (Losses)				Gains (Losses)
			Three months ended				Six months ended
			June 30		June 30		June 30		June 30
In millions			2015		2014		2015		2014
Assets
	Customer resale agreements								$	(1)
	Trading loans		$	1	$	1	$	2		1
	Commercial mortgage loans held for sale			31		5		56		7
	Residential mortgage loans held for sale			25		64		71		129
	Residential mortgage loans – portfolio			13		59		29		87
	BlackRock Series C Preferred Stock			(21)		5		(12)		3
Liabilities
	Other borrowed funds			(2)		7		(2)		3
(a)		The impact on earnings of offsetting hedged items or hedging instruments is not reflected in these amounts.

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 80: Fair Value Option - Fair Value and Principal Balances

							Aggregate Unpaid
In millions				Fair Value			Principal Balance		Difference
June 30, 2015
Assets
	Customer resale agreements				$	150	$	143	$	7
	Trading loans					48		48
	Residential mortgage loans held for sale
		Performing loans				1,338		1,300		38
		Accruing loans 90 days or more past due				3		3
		Nonaccrual loans				23		25		(2)
			Total			1,364		1,328		36
	Commercial mortgage loans held for sale (a)
		Performing loans				755		768		(13)
		Nonaccrual loans				2		3		(1)
			Total			757		771		(14)
	Residential mortgage loans - portfolio
		Performing loans				230		289		(59)
		Accruing loans 90 days or more past due				468		471		(3)
		Nonaccrual loans				243		397		(154)
			Total			941		1,157		(216)
Liabilities
	Other borrowed funds				$	224	$	260	$	(36)
December 31, 2014
Assets
	Customer resale agreements				$	155	$	148	$	7
	Trading loans					37		37
	Residential mortgage loans held for sale
		Performing loans				1,236		1,176		60
		Accruing loans 90 days or more past due				9		9
		Nonaccrual loans				16		17		(1)
			Total			1,261		1,202		59
	Commercial mortgage loans held for sale (a)
		Performing loans				873		908		(35)
		Nonaccrual loans				20		64		(44)
			Total			893		972		(79)
	Residential mortgage loans - portfolio
		Performing loans				194		256		(62)
		Accruing loans 90 days or more past due				570		573		(3)
		Nonaccrual loans				270		449		(179)
		Total				1,034		1,278		(244)
Liabilities
	Other borrowed funds				$	273	$	312	$	(39)
(a)	There were no accruing loans 90 days or more past due within this category at June 30, 2015 or December 31, 2014.

Additional Fair Value Information Related to Other Financial Instruments

Table 81: Additional Fair Value Information Related to Other Financial Instruments

		Carrying		Fair Value
In millions		Amount			Total		Level 1		Level 2		Level 3
June 30, 2015
Assets
Cash and due from banks		$	4,412	$	4,412	$	4,412
Short-term assets			36,743		36,743			$	36,743
Securities held to maturity			13,683		13,928		290		13,631	$	7
Loans held for sale			236		236				203		33
Net loans (excludes leases)			192,980		194,807						194,807
Other assets			1,936		2,531				1,882		649	(a)
	Total assets	$	249,990	$	252,657	$	4,702	$	52,459	$	195,496

Liabilities
Demand, savings and money market deposits		$	219,114	$	219,114			$	219,114
Time deposits			20,590		20,509				20,509
Borrowed funds			56,931		57,316				56,020	$	1,296
Unfunded loan commitments and letters of credit			228		228						228
	Total liabilities	$	296,863	$	297,167			$	295,643	$	1,524
December 31, 2014
Assets
Cash and due from banks		$	4,360	$	4,360	$	4,360
Short-term assets			34,380		34,380			$	34,380
Securities held to maturity			11,588		11,984		292		11,683	$	9
Loans held for sale			108		108				56		52
Net loans (excludes leases)			192,573		194,564						194,564
Other assets			1,879		2,544				1,802		742	(a)
	Total assets	$	244,888	$	247,940	$	4,652	$	47,921	$	195,367

Liabilities
Demand, savings and money market deposits		$	210,838	$	210,838			$	210,838
Time deposits			21,396		21,392				21,392
Borrowed funds			55,329		56,011				54,574	$	1,437
Unfunded loan commitments and letters of credit			240		240						240
	Total liabilities	$	287,803	$	288,481			$	286,804	$	1,677
(a)	Represents estimated fair value of Visa Class B common shares, which was estimated solely based upon the June 30, 2015 and December 31, 2014 closing price for the Visa Class A common shares, respectively, and the Visa Class B common share conversion rate, which reflects adjustments in respect of all litigation funding by Visa as of that date. The transfer restrictions on the Visa Class B common shares could impact the aforementioned estimate, until they can be converted to Class A common shares. See Note 22 Commitments and Guarantees in our 2014 Form 10-K for additional information.

- 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.

+ References + Details