Fair Value

3 Months Ended

Mar. 31, 2016

Note 7 Fair Value

Fair Value Measurement

PNC measures certain financial assets and liabilities at fair value in accordance with GAAP. Fair value is defined in GAAP as the price that would be received to sell an asset or the price that would be paid to transfer a liability on the measurement date. GAAP focuses on the exit price in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. GAAP also establishes a fair value hierarchy to maximize the use of observable inputs when measuring fair value. For more information regarding the fair value hierarchy see Note 7 Fair Value in our 2015 Form 10-K.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

For more information on the valuation methodologies used to measure assets and liabilities at fair value on a recurring basis, see Note 7 Fair Value in our 2015 Form 10-K. The following table summarizes our assets and liabilities measured at fair value on a recurring basis, including instruments for which PNC has elected the fair value option.

Table 65: Fair Value Measurements - Recurring Basis Summary

					March 31, 2016								December 31, 2015
											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		$	9,859	$	613			$	10,472	$	9,267	$	607			$	9,874
		Residential mortgage-backed
			Agency				25,685				25,685				24,820				24,820
			Non-agency				141	$	3,810		3,951				143	$	4,008		4,151
		Commercial mortgage-backed
			Agency				1,870				1,870				1,918				1,918
			Non-agency				4,743				4,743				4,903				4,903
		Asset-backed					5,174		451		5,625				4,941		482		5,423
		State and municipal					2,028		14		2,042				2,041		15		2,056
		Other debt					2,584		30		2,614				1,996		30		2,026
			Total debt securities		9,859		42,838		4,305		57,002		9,267		41,369		4,535		55,171
		Corporate stocks and other			350		63				413		527		62				589
			Total securities available for sale		10,209		42,901		4,305		57,415		9,794		41,431		4,535		55,760
	Financial derivatives (a) (b)
		Interest rate contracts			2		6,634		38		6,674				4,626		29		4,655
		Other contracts					253		3		256				284		2		286
			Total financial derivatives		2		6,887		41		6,930				4,910		31		4,941
	Residential mortgage loans held for sale (c)						776		4		780				838		5		843
	Trading securities (d)
		Debt			762		1,108		2		1,872		987		727		3		1,717
		Equity			12						12		9						9
			Total trading securities		774		1,108		2		1,884		996		727		3		1,726
	Residential mortgage servicing rights								863		863						1,063		1,063
	Commercial mortgage servicing rights								460		460						526		526
	Commercial mortgage loans held for sale (c)								655		655						641		641
	Equity investments - direct investments								1,156		1,156						1,098		1,098
	Equity investments - indirect investments (e) (f)										347								347
	Customer resale agreements (g)						138				138				137				137
	Loans (h)						566		329		895				565		340		905
	Other assets
		BlackRock Series C Preferred Stock (i)							208		208						357		357
		Other			250		195		6		451		254		199		7		460
			Total other assets		250		195		214		659		254		199		364		817
		Total assets		$	11,235	$	52,571	$	8,029	$	72,182	$	11,044	$	48,807	$	8,606	$	68,804
Liabilities
	Financial derivatives (b) (j)
		Interest rate contracts		$	3	$	4,654	$	10	$	4,667	$	1	$	3,124	$	7	$	3,132
		BlackRock LTIP							208		208						357		357
		Other contracts					245		115		360				204		109		313
			Total financial derivatives		3		4,899		333		5,235		1		3,328		473		3,802
	Trading securities sold short (k)
		Debt			847		9				856		960		27				987
			Total trading securities sold short		847		9				856		960		27				987
	Other borrowed funds						55		8		63				81		12		93
	Other liabilities								14		14						10		10
		Total liabilities		$	850	$	4,963	$	355	$	6,168	$	961	$	3,436	$	495	$	4,892
(a)		Included in Other assets on the Consolidated Balance Sheet.
(b)		Amounts at March 31, 2016 and December 31, 2015, 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 March 31, 2016 and December 31, 2015, the net asset amounts were $2.5 billion and $1.8 billion, respectively, and the net liability amounts were $.5 billion and $.6 billion, respectively.
(c)		Included in Loans held for sale on the 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 $49 million at March 31, 2016 compared with net unrealized gains of $23 million at December 31, 2015.
(e)		In accordance with ASC 820-10, certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheet.
(f)		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 March 31, 2016 related to indirect equity investments was $111 million and related to direct equity investments was $22 million, respectively. Comparable amounts at December 31, 2015 were $103 million and $23 million, respectively.
(g)		Included in Federal funds sold and resale agreements on the Consolidated Balance Sheet. PNC has elected the fair value option for these items.
(h)		Included in Loans on the Consolidated Balance Sheet.
(i)		PNC has elected the fair value option for these shares.
(j)		Included in Other liabilities on the Consolidated Balance Sheet.
(k)		Included in Other borrowed funds on the Consolidated Balance Sheet.

Reconciliations of assets and liabilities measured at fair value on a recurring basis using Level 3 inputs for the three months ended March 31, 2016 and 2015 follow:

Table 66: Reconciliation of Level 3 Assets and Liabilities

Three Months Ended March 31, 2016

																											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		Mar. 31,		at Mar. 31,
In millions					2015			Earnings			income		Purchases		Sales		Issuances		Settlements		Level 3		Level 3		2016		2016 (a) (b)
Assets
	Securities available for
		sale
		Residential mortgage-
			backed non-agency		$	4,008		$	22		$	(45)							$	(175)					$	3,810	$	(1)
		Asset-backed				482			3			(12)								(22)						451
		State and municipal				15						(1)														14
		Other debt				30							$	2	$	(2)										30
			Total securities
				available for sale		4,535			25			(58)		2		(2)				(197)						4,305		(1)
	Financial derivatives					31			34											(24)						41		28
	Residential mortgage
		loans held for sale				5								3		(1)					$	2	$	(5)		4
	Trading securities - Debt					3														(1)						2
	Residential mortgage
		servicing rights				1,063			(226)					52			$	11		(37)						863		(225)
	Commercial mortgage
		servicing rights				526			(55)					3				9		(23)						460		(55)
	Commercial mortgage
		loans held for sale				641			16							(649)		647								655		12
	Equity investments -
		direct investments				1,098			51					23		(16)										1,156		50
	Loans					340			2					33		(8)				(25)				(13)		329		1
	Other assets
		BlackRock Series C
			Preferred Stock			357			(11)											(138)						208		(11)
		Other				7			2			(2)				(1)										6
			Total other assets			364			(9)			(2)				(1)				(138)						214		(11)
				Total assets	$	8,606		$	(162)	(c)	$	(60)	$	116	$	(677)	$	667	$	(445)	$	2	$	(18)	$	8,029	$	(201)	(d)
Liabilities
	Financial derivatives (e)				$	473		$	7						$	2			$	(149)					$	333	$	8
	Other borrowed funds					12											$	23		(27)						8
	Other liabilities					10												38		(34)						14
				Total liabilities	$	495		$	7	(c)					$	2	$	61	$	(210)					$	355	$	8	(d)

Three Months Ended March 31, 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				Dec. 31,				Included in			comprehensive										into		out of		Mar. 31,		at Mar. 31,
In millions						2014			Earnings			income		Purchases		Sales		Issuances		Settlements		Level 3		Level 3		2015		2015 (a) (b)
Assets
	Securities available for
		sale
		Residential mortgage-
			backed non-agency			$	4,798		$	25		$	(14)							$	(185)					$	4,624	$	(1)
		Commercial mortgage-
			backed non-agency							7											(7)						-
		Asset-backed					563			6			4								(25)						548
		State and municipal					134						(1)														133
		Other debt					30			1				$	3						(1)						33
			Total securities
				available for sale			5,525			39			(11)		3						(218)						5,338		(1)
	Financial derivatives						42			71					1						(60)						54		59
	Residential mortgage
		loans held for sale					6								6							$	1	$	(6)		7
	Trading securities - Debt						32														(29)						3
	Residential mortgage
		servicing rights					845			(67)					83			$	17		(39)						839		(65)
	Commercial mortgage
		servicing rights					506			(16)					11				14		(21)						494		(16)
	Commercial mortgage
		loans held for sale					893			21						$	(1,020)		1,083		(2)						975		15
	Equity investments -
		direct investments					1,152			29					43		(75)										1,149		18
	Loans						397			10					32		(4)				(37)		5		(20)		383		8
	Other assets
		BlackRock Series C
			Preferred Stock				375			9																	384		9
		Other					15										(5)										10
			Total other assets				390			9							(5)										394		9
				Total assets		$	9,788		$	96	(c)	$	(11)	$	179	$	(1,104)	$	1,114	$	(406)	$	6	$	(26)	$	9,636	$	27	(d)
Liabilities
	Financial derivatives (e)					$	526		$	41										$	(38)					$	529	$	(6)
	Other borrowed funds						181											$	25		(35)						171
	Other liabilities						9			1																	10
				Total liabilities		$	716		$	42	(c)							$	25	$	(73)					$	710	$	(6)	(d)
(a)			Losses for assets are bracketed while losses for liabilities are not.
(b)			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.
(c)			Net losses (realized and unrealized) included in earnings relating to Level 3 assets and liabilities were $169 million for the first three months of 2016 compared with net gains (realized and unrealized) of $54 million for the first three months of 2015.These amounts also included amortization and accretion. 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.
(d)			Net unrealized losses relating to those assets and liabilities held at the end of the reporting period were $209 million for the first three months of 2016, compared with net unrealized gains of $33 million for the first three months of 2015. These amounts were included in Noninterest income on the Consolidated Income Statement.
(e)			Includes swaps entered into in connection with sales of certain Visa Class B common shares.

An instrument’s categorization within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. Changes from one quarter to the next related to the observability of inputs to a fair value measurement may result in a reclassification (transfer) of assets or liabilities between hierarchy levels. PNC’s policy is to recognize transfers in and transfers out as of the end of the reporting period. There were no significant transfers into or out of Level 3 assets and liabilities during the first three months of 2016 and 2015

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

Table 67: Fair Value Measurements - Recurring Quantitative Information

March 31, 2016

Level 3 Instruments Only

Dollars in millions

Fair Value

Valuation Techniques

Unobservable Inputs

Range (Weighted Average)

Residential mortgage-backed

non-agency securities

3,810

Priced by a third-party vendor

Constant prepayment rate (CPR)

1.0%-24.2% (7.0%)

(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% (53.3%)

(a)

Spread over the benchmark curve (b)

283bps weighted average

(a)

Asset-backed securities

451

Priced by a third-party vendor

Constant prepayment rate (CPR)

1.0%-14.0% (6.3%)

(a)

using a discounted cash flow

Constant default rate (CDR)

1.7%-13.9% (6.7%)

(a)

pricing model (a)

Loss severity

24.2%-100% (77.8%)

(a)

Spread over the benchmark curve (b)

397bps weighted average

(a)

Residential mortgage servicing rights

863

Discounted cash flow

Constant prepayment rate (CPR)

0.3%-36.6% (15.7%)

Spread over the benchmark curve (b)

171bps-1,856bps (882bps)

Commercial mortgage servicing

460

Discounted cash flow

Constant prepayment rate (CPR)

5.4%-42.0% (7.3%)

rights

Discount rate

5.1%-7.5% (7.4%)

Commercial mortgage loans held

655

Discounted cash flow

Spread over the benchmark curve (b)

64bps-5,540bps (561bps)

for sale

Estimated servicing cash flows

0.0%-6.5% (3.0%)

Equity investments - Direct investments

1,156

Multiple of adjusted earnings

Multiple of earnings

4.5x-13.8x (8.0x)

Loans - Residential real estate

126

Consensus pricing (c)

Cumulative default rate

2.0%-100% (81.5%)

Loss severity

0.0%-100% (25.5%)

Discount rate

4.9%-7.0% (5.2%)

110

Discounted cash flow

Loss severity

8.0% weighted average

Discount rate

3.8% weighted average

Loans - Home equity

Consensus pricing (c)

Credit and Liquidity discount

26.0%-99.0% (55.0%)

BlackRock Series C Preferred Stock

208

Consensus pricing (c)

Liquidity discount

20.0%

BlackRock LTIP

(208)

Consensus pricing (c)

Liquidity discount

20.0%

Swaps related to sales of certain Visa

(109)

Discounted cash flow

Estimated conversion factor of

Class B common shares

Class B shares into Class A shares

164.3%

Estimated growth rate of Visa

Class A share price

18.0%

Insignificant Level 3 assets, net of

liabilities (d)

Total Level 3 assets, net of liabilities (e)

7,674

December 31, 2015

Level 3 Instruments Only

Dollars in millions

Fair Value

Valuation Techniques

Unobservable Inputs

Range (Weighted Average)

Residential mortgage-backed

non-agency securities

4,008

Priced by a third-party vendor

Constant prepayment rate (CPR)

1.0%-24.2% (7.0%)

(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% (53.3%)

(a)

Spread over the benchmark curve (b)

241bps weighted average

(a)

Asset-backed securities

482

Priced by a third-party vendor

Constant prepayment rate (CPR)

1.0%-14.0% (6.3%)

(a)

using a discounted cash flow

Constant default rate (CDR)

1.7%-13.9% (6.8%)

(a)

pricing model (a)

Loss severity

24.2%-100.0% (77.5%)

(a)

Spread over the benchmark curve (b)

324bps weighted average

(a)

Residential mortgage servicing rights

1,063

Discounted cash flow

Constant prepayment rate (CPR)

0.3%-46.5% (10.6%)

Spread over the benchmark curve (b)

559bps-1,883bps (893bps)

Commercial mortgage servicing rights

526

Discounted cash flow

Constant prepayment rate (CPR)

3.9%-26.5% (5.7%)

Discount rate

2.6%-7.7% (7.5%)

Commercial mortgage loans held

for sale

641

Discounted cash flow

Spread over the benchmark curve (b)

85bps-4,270bps (547bps)

Estimated servicing cash flows

0.0%-7.0% (0.9%)

Equity investments - Direct investments

1,098

Multiple of adjusted earnings

Multiple of earnings

4.2x-14.1x (7.6x)

Loans - Residential real estate

123

Consensus pricing (c)

Cumulative default rate

2.0%-100.0% (85.1%)

Loss severity

0.0%-100.0% (27.3%)

Discount rate

4.9%-7.0% (5.2%)

116

Discounted cash flow

Loss severity

8.0% weighted average

Discount rate

3.9% weighted average

Loans - Home equity

101

Consensus pricing (c)

Credit and Liquidity discount

26.0%-99.0% (54.0%)

BlackRock Series C Preferred Stock

357

Consensus pricing (c)

Liquidity discount

20.0%

BlackRock LTIP

(357)

Consensus pricing (c)

Liquidity discount

20.0%

Swaps related to sales of certain

(104)

Discounted cash flow

Estimated conversion factor of

Visa Class B common shares

Class B shares into Class A shares

164.3%

Estimated growth rate of Visa Class

A share price

16.3%

Insignificant Level 3 assets, net of

liabilities (d)

Total Level 3 assets, net of liabilities (e)

8,111

(a)

Level 3 residential mortgage-backed non-agency and asset-backed securities with fair values as of March 31, 2016 totaling $3,197 million and $419 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, 2015 were $3,379 million and $448 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 Assets and Liabilities Measured at Fair Value on a Recurring Basis section of Note 7 Fair Value in our 2015 Form 10-K. Certain Level 3 residential mortgage-backed non-agency and asset-backed securities with fair values as of March 31, 2016 of $613 million and $32 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, 2015 were $629 million and $34 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)

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, state and municipal securities, other debt securities, residential mortgage loans held for sale, other assets, other borrowed funds (ROAPs) and other liabilities. For additional information, please see the Assets and Liabilities Measured at Fair Value on a Recurring Basis discussion included in Note 7 Fair Value in our 2015 Form 10-K.

(e)

Consisted of total Level 3 assets of $8,029 million and total Level 3 liabilities of $355 million as of March 31, 2016 and $8,606 million and $495 million as of December 31, 2015, respectively.

Financial Assets Accounted for at Fair Value on a Nonrecurring Basis

We may be required to measure certain financial assets at fair value on a nonrecurring basis. These adjustments to fair value usually result from the application of lower of amortized cost or fair value accounting or write-downs of individual assets due to impairment and are included in Table 68 and Table 69. For more information regarding the valuation methodologies of our financial assets measured at fair value on a nonrecurring basis, see Note 7 Fair Value in our 2015 Form 10-K.

Table 68: Fair Value Measurements - Nonrecurring

								Gains (Losses)
				Fair Value (a)				Three months ended
			March 31		December 31		March 31		March 31
In millions			2016		2015		2016		2015
Assets
	Nonaccrual loans		$	87	$	30	$	(47)	$	3
	Equity investments			1		5		(4)		(1)
	OREO and foreclosed assets			70		137		(8)		(10)
	Long-lived assets held for sale			6		23		(3)		(8)
		Total assets	$	164	$	195	$	(62)	$	(16)
(a)	All Level 3 as of March 31, 2016 and December 31, 2015.

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

Table 69: Fair Value Measurements - Nonrecurring Quantitative Information

Level 3 Instruments Only

Dollars in millions

Fair Value

Valuation Techniques

Unobservable Inputs

Range (Weighted Average)

March 31, 2016

Assets

Nonaccrual loans (a)

LGD percentage (b)

Loss severity

6.7%-62.7% (33.8%)

Equity investments

Discounted cash flow

Market rate of return

5.0%

Other (c)

101

Fair value of property or collateral

Appraised value/sales price

Not meaningful

Total assets

164

December 31, 2015

Assets

Nonaccrual loans (a)

LGD percentage (b)

Loss severity

8.1%-73.3% (58.6%)

Equity investments

Discounted cash flow

Market rate of return

5.0%

Other (c)

170

Fair value of property or collateral

Appraised value/sales price

Not meaningful

Total assets

195

(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 $25 million, OREO and foreclosed assets of $70 million and Long-lived assets held for sale of $6 million as of March 31, 2016. Comparably, as of December 31, 2015, Other included Nonaccrual loans of $10 million, OREO and foreclosed assets of $137 million and Long-lived assets held for sale of $23 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.

Financial Instruments Accounted For Under Fair Value Option

We elect the fair value option to account for certain financial instruments. For more information on these financial instruments for which the fair value option election has been made, please refer to Note 7 Fair Value in our 2015 Form 10-K.

The changes in fair value for items for which we elected the fair value option are included in Noninterest income and Noninterest expense on the Consolidated Income Statement and are as follows:

Table 70: Fair Value Option - Changes in Fair Value (a)

			Gains (Losses)
			Three months ended
		March 31		March 31
In millions		2016		2015
Assets
	Commercial mortgage loans held for sale	$	27	$	25
	Residential mortgage loans held for sale		47		46
	Residential mortgage loans – portfolio		6		16
	BlackRock Series C Preferred Stock		(11)		9
	Other assets		(16)		1
(a)	The impact on earnings of offsetting hedged items or hedging instruments is not reflected in these amounts.

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

Table 71: Fair Value Option - Fair Value and Principal Balances

							Aggregate Unpaid
In millions				Fair Value			Principal Balance		Difference
March 31, 2016
Assets
	Customer resale agreements				$	138	$	134	$	4
	Residential mortgage loans held for sale
		Performing loans				767		731		36
		Accruing loans 90 days or more past due				4		4
		Nonaccrual loans				9		9
			Total			780		744		36
	Commercial mortgage loans held for sale (a)
		Performing loans				652		657		(5)
		Nonaccrual loans				3		5		(2)
			Total			655		662		(7)
	Residential mortgage loans - portfolio
		Performing loans				270		313		(43)
		Accruing loans 90 days or more past due				410		410
		Nonaccrual loans				215		361		(146)
			Total			895		1,084		(189)
	Other assets					167		172		(5)
Liabilities
	Other borrowed funds				$	63	$	64	$	(1)
December 31, 2015
Assets
	Customer resale agreements				$	137	$	133	$	4
	Residential mortgage loans held for sale
		Performing loans				832		804		28
		Accruing loans 90 days or more past due				4		4
		Nonaccrual loans				7		8		(1)
			Total			843		816		27
	Commercial mortgage loans held for sale (a)
		Performing loans				639		659		(20)
		Nonaccrual loans				2		3		(1)
			Total			641		662		(21)
	Residential mortgage loans - portfolio
		Performing loans				204		260		(56)
		Accruing loans 90 days or more past due				475		478		(3)
		Nonaccrual loans				226		361		(135)
		Total				905		1,099		(194)
	Other assets					164		159		5
Liabilities
	Other borrowed funds				$	93	$	95	$	(2)
(a)	There were no accruing loans 90 days or more past due within this category at March 31, 2016 or December 31, 2015.

Additional Fair Value Information Related to Other Financial Instruments

The following table presents the carrying amounts and estimated fair values, including the level within the fair value hierarchy, of all other financial instruments that are not measured on the consolidated financial statements at fair value as of March 31, 2016 and December 31, 2015.

Table 72: Additional Fair Value Information Related to Other Financial Instruments

		Carrying		Fair Value
In millions		Amount			Total		Level 1		Level 2		Level 3
March 31, 2016
Assets
Cash and due from banks		$	3,861	$	3,861	$	3,861
Short-term assets			31,787		31,787			$	31,787
Securities held to maturity			15,154		15,608		317		15,285	$	6
Loans held for sale			106		109				94		15
Net loans (excludes leases)			196,280		199,002						199,002
Other assets			1,767		2,298				1,748		550	(a)
	Total assets	$	248,955	$	252,665	$	4,178	$	48,914	$	199,573

Liabilities
Demand, savings and money market deposits		$	231,304	$	231,304			$	231,304
Time deposits			19,055		19,132				19,132
Borrowed funds			53,545		54,109				52,775	$	1,334
Unfunded loan commitments and letters of credit			263		263						263
Other liabilities			53		53				53
	Total liabilities	$	304,220	$	304,861			$	303,264	$	1,597
December 31, 2015
Assets
Cash and due from banks		$	4,065	$	4,065	$	4,065
Short-term assets			32,959		32,959			$	32,959
Securities held to maturity			14,768		15,002		298		14,698	$	6
Loans held for sale			56		56				22		34
Net loans (excludes leases)			195,579		197,611						197,611
Other assets			1,817		2,408				1,786		622	(a)
	Total assets	$	249,244	$	252,101	$	4,363	$	49,465	$	198,273

Liabilities
Demand, savings and money market deposits		$	228,492	$	228,492			$	228,492
Time deposits			20,510		20,471				20,471
Borrowed funds			53,761		54,002				52,578	$	1,424
Unfunded loan commitments and letters of credit			245		245						245
	Total liabilities	$	303,008	$	303,210			$	301,541	$	1,669
(a)	Represents estimated fair value of Visa Class B common shares, which was estimated solely based upon the March 31, 2016 and December 31, 2015 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 21 Commitments and Guarantees in our 2015 Form 10-K for additional information.

The aggregate fair values in the preceding table represent only a portion of the total market value of PNC’s assets and liabilities as, in accordance with the guidance related to fair values of financial instruments, Table 72 excludes the following:

financial instruments recorded at fair value on a recurring basis,
real and personal property,
lease financing,
loan customer relationships,
deposit customer intangibles,
mortgage servicing rights,
retail branch networks,
fee-based businesses, such as asset management and brokerage, and
trademarks and brand names.

For more information regarding the methods and assumptions used to estimate the fair values of financial instruments included in Table 72, see Note 7 Fair Value in our 2015 Form 10-K.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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