Loan Sale and Servicing Activities and Variable Interest Entities (Tables)

6 Months Ended

Jun. 30, 2016

Loan Sale and Servicing Activities and Variable Interest Entities [Abstract]

Cash Flows Associated with Loan Sale and Servicing Activities

Table 42: Cash Flows Associated with Loan Sale and Servicing Activities
		Residential			Commercial		Home Equity
In millions		Mortgages			Mortgages (a)		Loans/Lines (b)
CASH FLOWS - Three months ended June 30, 2016
Sales of loans (c)			$	1,408	$	804
Repurchases of previously transferred loans (d)			$	103
Servicing fees (e)			$	93	$	32	$	3
Servicing advances recovered/(funded), net			$	48	$	(24)	$	(4)
Cash flows on mortgage-backed securities held (f)			$	417	$	92
CASH FLOWS - Three months ended June 30, 2015
Sales of loans (c)			$	2,015	$	1,159
Repurchases of previously transferred loans (d)			$	134
Servicing fees (e)			$	82	$	36	$	4
Servicing advances recovered/(funded), net			$	47	$	21	$	1
Cash flows on mortgage-backed securities held (f)			$	429	$	54
CASH FLOWS - Six months ended June 30, 2016
Sales of loans (c)			$	2,846	$	1,454
Repurchases of previously transferred loans (d)			$	263
Servicing fees (e)			$	186	$	62	$	6
Servicing advances recovered/(funded), net			$	76	$	7	$	20
Cash flows on mortgage-backed securities held (f)			$	769	$	197
CASH FLOWS - Six months ended June 30, 2015
Sales of loans (c)			$	3,955	$	2,179
Repurchases of previously transferred loans (d)			$	303			$	2
Servicing fees (e)			$	165	$	68	$	8
Servicing advances recovered/(funded), net			$	38	$	28	$	25
Cash flows on mortgage-backed securities held (f)			$	669	$	114
(a)	Represents cash flow information associated with both commercial mortgage loan transfer and servicing activities.
(b)	These activities were part of an acquired brokered home equity lending business in which PNC is no longer engaged.
(c)	Gains/losses recognized on sales of loans were insignificant for the periods presented.
(d)	Includes residential mortgage government insured or guaranteed loans eligible for repurchase through the exercise of our Removal of Account Provision (ROAP) option, and loans repurchased due to alleged breaches of origination covenants or representations and warranties made to purchasers. Includes home equity lines of credit repurchased at the end of their draw periods due to contractual requirements.
(e)	Includes contractually specified servicing fees, late charges and ancillary fees.
(f)	Represents cash flows on securities we hold issued by a securitization SPE in which PNC transferred to and/or services loans. The carrying values of such securities held were $6.4 billion in residential mortgage-backed securities and $1.1 billion in commercial mortgage-backed securities at June 30, 2016 and $5.6 billion in residential mortgage-backed securities and $1.2 billion in commercial mortgage-backed securities at June 30, 2015. Additionally, at December 31, 2015, the carrying values of such securities held were $6.6 billion in residential mortgage-backed securities and $1.3 billion in commercial mortgage-backed securities.

Principal Balance, Delinquent Loans (Loans 90 Days or More Past Due), and Net Charge-Offs Related to Serviced Loans

Table 43: Principal Balance, Delinquent Loans, and Net Charge-offs Related to Serviced Loans For Others
		Residential		Commercial		Home Equity
In millions		Mortgages		Mortgages (a)		Loans/Lines (b)
June 30, 2016
Total principal balance	$	69,268	$	49,625	$	2,533
Delinquent loans (c)	$	1,555	$	1,035	$	893
December 31, 2015
Total principal balance	$	72,898	$	53,789	$	2,806
Delinquent loans (c)	$	1,923	$	1,057	$	904
Three months ended June 30, 2016
Net charge-offs (d)	$	28	$	157	$	9
Three months ended June 30, 2015
Net charge-offs (d)	$	37	$	148	$	8
Six months ended June 30, 2016
Net charge-offs (d)	$	54	$	1,069	$	16
Six months ended June 30, 2015
Net charge-offs (d)	$	69	$	255	$	15
(a) Represents information at the securitization level in which PNC has sold loans and is the servicer for the securitization.
(b) These activities were part of an acquired brokered home equity lending business in which PNC is no longer engaged.
(c) Serviced delinquent loans are 90 days or more past due or are in process of foreclosure.
(d) Net charge-offs for Residential mortgages and Home equity loans/lines represent credit losses less recoveries distributed and as reported to investors during the period. Net charge-offs for Commercial mortgages represent credit losses less recoveries distributed and as reported by the trustee for commercial mortgage backed securitizations. Realized losses for Agency securitizations are not reflected as we do not manage the underlying real estate upon foreclosure and, as such, do not have access to loss information.

Consolidated VIEs - Carrying Value

Table 44: Consolidated VIEs – Carrying Value (a)
June 30, 2016 (b)
In millions			Total
Assets
Equity investments				$	220
Other assets					47
	Total assets			$	267
	Total liabilities			$	11
Noncontrolling interests				$	123
December 31, 2015
In millions			Total
Assets
Cash and due from banks				$	11
Interest-earning deposits with banks					4
Loans					1,341
Allowance for loan and lease losses					(48)
Equity investments					183
Other assets					402
	Total assets			$	1,893
Liabilities
Other borrowed funds				$	148
Accrued expenses					44
Other liabilities					202
	Total liabilities			$	394
Noncontrolling interests				$	99
(a)		Amounts represent carrying value on PNC’s Consolidated Balance Sheet.
(b)		Amounts for June 30, 2016 reflect the first quarter 2016 adoption of ASU 2015-02.

Non-Consolidated VIEs

Table 45: Non-Consolidated VIEs
		PNC Risk of Loss (a)		Carrying Value of Assets Owned by PNC			Carrying Value of Liabilities Owned by PNC
In millions
June 30, 2016 (b)
Commercial Mortgage-Backed Securitizations (c)		$	1,284	$	1,284	(d)
Residential Mortgage-Backed Securitizations (c)			6,406		6,406	(d)	$	1	(f)
Tax Credit Investments and Other			3,042		2,963	(e)		771	(g)
	Total	$	10,732	$	10,653		$	772
December 31, 2015
Commercial Mortgage-Backed Securitizations (c)		$	1,498	$	1,498	(d)	$	1	(f)
Residential Mortgage-Backed Securitizations (c)			6,680		6,680	(d)		1	(f)
Tax Credit Investments and Other			2,551		2,622	(e)		836	(g)
	Total	$	10,729	$	10,800		$	838
(a)	This represents loans, investments and other assets related to non-consolidated VIEs, net of collateral (if applicable).
(b)	Amounts for June 30, 2016 reflect the first quarter 2016 adoption of ASU 2015-02.
(c)	Amounts reflect involvement with securitization SPEs where PNC transferred to and/or services loans for an SPE and we hold securities issued by that SPE. Values disclosed in the PNC Risk of Loss column represent our maximum exposure to loss for those securities’ holdings.
(d)	Included in Trading securities, Investment securities, Other intangible assets and Other assets on our Consolidated Balance Sheet.
(e)	Included in Loans, Equity investments and Other assets on our Consolidated Balance Sheet.
(f)	Included in Other liabilities on our Consolidated Balance Sheet.
(g)	Included in Deposits and Other liabilities on our Consolidated Balance Sheet.