Fair Value (Tables)

6 Months Ended

Jun. 30, 2011

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

Fair Value Measurements - Summary

					June 30, 2011								December 31, 2010
											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
		US Treasury and government agencies		$	3,692	$	438			$	4,130	$	5,289	$	421			$	5,710
		Residential mortgage-backed
			Agency				25,500				25,500				31,720				31,720
			Non-agency					$	6,454		6,454					$	7,233		7,233
		Commercial mortgage-backed
			Agency				1,303				1,303				1,797				1,797
			Non-agency				2,545				2,545				1,856				1,856
		Asset-backed					2,734		951		3,685				1,537		1,045		2,582
		State and municipal					1,961		341		2,302				1,729		228		1,957
		Other debt					3,367		75		3,442				4,004		73		4,077
			Total debt securities		3,692		37,848		7,821		49,361		5,289		43,064		8,579		56,932
		Corporate stocks and other			306						306		307		67		4		378
			Total securities available for sale		3,998		37,848		7,821		49,667		5,596		43,131		8,583		57,310
	Financial derivatives (a) (b)
		Interest rate contracts			2		5,597		51		5,650				5,502		68		5,570
		Other contracts					196		9		205				178		9		187
			Total financial derivatives		2		5,793		60		5,855				5,680		77		5,757
	Residential mortgage loans held for sale (c)						1,351				1,351				1,878				1,878
	Trading securities (d)
		Debt (e) (f)			607		1,368		56		2,031		1,348		367		69		1,784
		Equity			44						44		42						42
			Total trading securities		651		1,368		56		2,075		1,390		367		69		1,826
	Residential mortgage servicing rights (g)								996		996						1,033		1,033
	Commercial mortgage loans held for sale (c)								856		856						877		877
	Equity investments
		Direct investments							849		849						749		749
		Indirect investments (h)							664		664						635		635
			Total equity investments						1,513		1,513						1,384		1,384
	Customer resale agreements (i)						813				813				866				866
	Loans (j)						235		4		239				114		2		116
	Other assets
		BlackRock Series C Preferred Stock (k)							426		426						396		396
		Other					468		8		476				450		7		457
			Total other assets				468		434		902				450		403		853
		Total assets		$	4,651	$	47,876	$	11,740	$	64,267	$	6,986	$	52,486	$	12,428	$	71,900
Liabilities
	Financial derivatives (b) (l)
		Interest rate contracts				$	4,223	$	7	$	4,230			$	4,302	$	56	$	4,358
		BlackRock LTIP							426		426						396		396
		Other contracts					196		11		207				173		8		181
			Total financial derivatives				4,419		444		4,863				4,475		460		4,935
	Trading securities sold short (m)
		Debt (e)		$	1,804		41				1,845	$	2,514		16				2,530
			Total trading securities sold short		1,804		41				1,845		2,514		16				2,530
	Other liabilities														6				6
		Total liabilities		$	1,804	$	4,460	$	444	$	6,708	$	2,514	$	4,497	$	460	$	7,471
(a)		Included in Other assets on our Consolidated Balance Sheet.
(b)		Amounts at June 30, 2011 and December 31, 2010 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 June 30, 2011 and December 31, 2010,
		respectively, the net asset amounts were $1.8 billion and $1.9 billion and the net liability amounts were $.9 billion and $1.1 billion.
(c)		Included in Loans held for sale on our Consolidated Balance Sheet. PNC has elected the fair value option for certain commercial and residential
		mortgage loans held for sale.
(d)		Fair value includes net unrealized gains of $7 million at June 30, 2011 compared with net unrealized losses of $17 million at December 31, 2010.
(e)		Approximately 57% of these securities are residential mortgage-backed agency hybrid securities and 31% are US Treasury and government agencies securities at
		June 30, 2011.
(f)		At June 30, 2011, $1.0 billion of residential mortgage-backed agency hybrid securities are carried in Trading securities.
(g)		Included in Other intangible assets on our Consolidated Balance Sheet.
(h)		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.
(i)		Included in Federal funds sold and resale agreements on our Consolidated Balance Sheet. PNC has elected the fair value option for these items.
(j)		Included in Loans on our Consolidated Balance Sheet.
(k)		PNC has elected the fair value option for these shares.
(l)		Included in Other liabilities on our Consolidated Balance Sheet.
(m)		Included in Other borrowed funds on our Consolidated Balance Sheet.

Reconciliation of Assets and Liabilities Using Level 3 Inputs

Reconciliations of assets and liabilities measured at fair value on a recurring basis using Level 3 inputs for the three months and
six months ended June 30, 2011 and 2010 follow.

Three Months Ended June 30, 2011

																						(*) Unrealized
																						gains or 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										Fair Value		Balance Sheet at
	Only				March 31,			Included in		comprehensive										June 30,		June 30,
In millions					2011			Earnings (*)		income		Purchases		Sales		Issuances		Settlements		2011		2011
Assets
	Securities available for
		sale
		Residential mortgage-
			backed non-agency		$	7,171		$	(58)	$	(73)	$	3	$	(280)			$	(309)	$	6,454	$	(35)
		Asset-backed				1,024					(11)								(62)		951		(4)
		State and municipal				341					1		5						(6)		341
		Other debt				73			(1)		2		2		(2)				1		75
		Corporate stocks
			and other			1													(1)
			Total securities
				available for sale		8,610			(59)		(81)		10		(282)				(377)		7,821		(39)
	Financial derivatives					50			63				3						(56)		60		63
	Trading securities - Debt					60			1										(5)		56
	Residential mortgage
		servicing rights				1,109			(107)							$	31		(37)		996		(105)
	Commercial mortgage
		loans held for sale				858			6						(6)				(2)		856		5
	Equity investments
		Direct investments				794			21				55		(21)						849		20
		Indirect investments				663			27				14		(40)						664		29
			Total equity
				investments		1,457			48				69		(61)						1,513		49
	Loans					2							2								4
	Other assets
		BlackRock Series C
			Preferred Stock			447			(21)												426		(21)
		Other				8															8
			Total other assets			455			(21)												434		(21)
				Total assets	$	12,601		$	(69)	$	(81)	$	84	$	(349)	$	31	$	(477)	$	11,740	$	(48)
				Total liabilities (c)	$	476		$	(14)					$	5			$	(23)	$	444	$	(18)

Three Months Ended June 30, 2010

																				(*) Unrealized
							Total realized / unrealized													gains or losses
							gains or losses for the period (a)													on assets and
												Purchases,								liabilities held on
											Included in	issuances,								Consolidated
					Fair Value						other	and		Transfers		Transfers		Fair Value		Balance Sheet at
Level 3 Instruments Only					March 31,			Included in			comprehensive	settlements,		into		out of		June 30,		June 30,
In millions					2010			Earnings (*)			income	net		Level 3 (b)		Level 3 (b)		2010		2010
Assets
	Securities available for sale
		Residential mortgage-
			backed non-agency		$	7,710		$	(46)	$	395	$	(422)			$	(2)	$	7,635		$	(81)
		Commercial mortgage-
			backed non-agency			3											(3)
		Asset-backed				1,187			(10)		61		(88)						1,150			(10)
		State and municipal				272			5		(11)		(29)						237
		Other debt				83					1		(2)						82
		Corporate stocks
			and other			47													47
			Total securities
				available for sale		9,302			(51)		446		(541)				(5)		9,151			(91)
	Financial derivatives					86			6				(7)						85			58
	Trading securities - Debt					77			1				(5)						73
	Residential mortgage
		servicing rights				1,271			(288)				(20)						963			(291)
	Commercial mortgage
		loans held for sale				1,041			13				(18)						1,036			14
	Equity investments
		Direct investments				602			63				(15)						650			58
		Indirect investments				606			24				(12)						618			22
			Total equity investments			1,208			87				(27)						1,268			80
	Other assets
		BlackRock Series C
			Preferred Stock			452			(154)										298
		Other				9					(1)		(1)						7
			Total other assets			461			(154)		(1)		(1)						305
				Total assets	$	13,446		$	(386)	$	445	$	(619)			$	(5)	$	12,881		$	(230)
				Total liabilities (c)	$	494		$	(159)			$	19	$	1			$	355		$	50
(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)		Financial derivatives.


Six Months Ended June 30, 2011

																						(*) Unrealized
																						gains or 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										Fair Value		Balance Sheet at
	Only				Dec. 31,			Included in		comprehensive										June 30,		June 30,
In millions					2010			Earnings (*)		income		Purchases		Sales		Issuances		Settlements		2011		2011
Assets
	Securities available for
		sale
		Residential mortgage-
			backed non-agency		$	7,233		$	(64)	$	182	$	45		(280)			$	(662)	$	6,454	$	(63)
		Asset-backed				1,045			(3)		43								(134)		951		(9)
		State and municipal				228					3		121						(11)		341
		Other debt				73			(2)		4		2	$	(3)				1		75		(1)
		Corporate stocks
			and other			4													(4)
			Total securities
				available for sale		8,583			(69)		232		168		(283)				(810)		7,821		(73)
	Financial derivatives					77			106				3						(126)		60		90
	Trading securities - Debt					69			(3)										(10)		56		(5)
	Residential mortgage
		servicing rights				1,033			(71)				48			$	70		(84)		996		(70)
	Commercial mortgage
		loans held for sale				877			(1)						(13)				(7)		856		(1)
	Equity investments
		Direct investments				749			34				102		(36)						849		31
		Indirect investments				635			71				24		(66)						664		71
			Total equity
				investments		1,384			105				126		(102)						1,513		102
	Loans					2							2								4
	Other assets
		BlackRock Series C
			Preferred Stock			396			30												426		30
		Other				7							1								8
			Total other assets			403			30				1								434		30
				Total assets	$	12,428		$	97	$	232	$	348	$	(398)	$	70	$	(1,037)	$	11,740	$	73
				Total liabilities (c)	$	460		$	50					$	8			$	(74)	$	444	$	34

Six Months Ended June 30, 2010

																				(*) Unrealized
							Total realized / unrealized													gains or losses
							gains or losses for the period (a)													on assets and
												Purchases,								liabilities held on
											Included in	issuances,								Consolidated
					Fair Value						other	and		Transfers		Transfers		Fair Value		Balance Sheet at
Level 3 Instruments Only					December 31,			Included in			comprehensive	settlements,		into		out of		June 30,		June 30,
In millions					2009			Earnings (*)			income	net		Level 3 (b)		Level 3 (b)		2010		2010
Assets
	Securities available for sale
		Residential mortgage-
			backed agency		$	5						$	(5)
		Residential mortgage-
			backed non-agency			8,302		$	(115)	$	680		(1,230)				(2)	$	7,635		$	(154)
		Commercial mortgage-
			backed non-agency			6								$	2	$	(8)
		Asset-backed				1,254			(53)		118		(169)						1,150			(53)
		State and municipal				266			5		(17)		(18)		1				237
		Other debt				53					4		(4)		29				82
		Corporate stocks
			and other			47					(1)		1						47
			Total securities
				available for sale		9,933			(163)		784		(1,425)		32		(10)		9,151			(207)
	Financial derivatives					50			42				(7)						85			76
	Trading securities - Debt					89			(3)				(13)						73			(4)
	Residential mortgage
		servicing rights				1,332			(323)				(46)						963			(324)
	Commercial mortgage
		loans held for sale				1,050			22				(36)						1,036			20
	Equity investments
		Direct investments				595			88				(33)						650			73
		Indirect investments				593			41				(16)						618			33
			Total equity investments			1,188			129				(49)						1,268			106
	Other assets
		BlackRock Series C
			Preferred Stock			486			(184)				(4)						298
		Other				23					(4)		(12)						7
			Total other assets			509			(184)		(4)		(16)						305
				Total assets	$	14,151		$	(480)	$	780	$	(1,592)	$	32	$	(10)	$	12,881		$	(333)
				Total liabilities (c)	$	506		$	(173)			$	21		1			$	355		$	48
(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)		Financial derivatives.

Fair Value Measurements - Nonrecurring

Fair Value Measurements – Nonrecurring (a)

								Gains (Losses)				Gains (Losses)
				Fair Value				Three months ended				Six months ended
			June 30		December 31		June 30		June 30		June 30		June 30
In millions			2011		2010		2011		2010		2011		2010
Assets
	Nonaccrual loans		$	339	$	429	$	(42)	$	26	$	(81)
	Loans held for sale			267		350		(18)		(78)		(18)	$	(78)
	Equity investments (b)					3
	Commercial mortgage servicing rights			575		644		(40)		(14)		(75)		(18)
	Other intangible assets					1
	Foreclosed and other assets			175		245		(22)		(35)		(42)		(58)
	Long-lived assets held for sale			5		25		(1)		(4)		(2)		(13)
		Total assets	$	1,361	$	1,697	$	(123)	$	(105)	$	(218)	$	(167)
(a)		All Level 3.
(b)		Includes LIHTC and other equity investments.

Fair Value Option - Changes in Fair Value

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			2011		2010		2011		2010
Assets
	Customer resale agreements		$	1	$	7	$	(7)	$	8
	Residential mortgage-backed agency hybrid securities (b)			(3)				(3)
	Commercial mortgage loans held for sale			6		13		(1)		22
	Residential mortgage loans held for sale			60		94		108		140
	Residential mortgage loans – portfolio			(8)		1		2		3
	BlackRock Series C Preferred Stock			(21)		(154)		30		(184)
(a)		The impact on earnings of offsetting hedged items or hedging instruments is not reflected in these amounts.
(b)		These residential mortgage-backed agency hybrid securities are carried as trading securities.

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.

Fair Value Option - Fair Value and Principal Balances

						Aggregate Unpaid
In millions			Fair Value			Principal Balance		Difference
June 30, 2011
Customer resale agreements				$	813	$	761	$	52
Residential mortgage-backed agency hybrid securities (a)					1,023		852		171
Residential mortgage loans held for sale
	Performing loans				1,333		1,286		47
	Loans 90 days or more past due				16		21		(5)
	Nonaccrual loans				2		4		(2)
		Total			1,351		1,311		40
Commercial mortgage loans held for sale (b)
	Performing loans				839		981		(142)
	Nonaccrual loans				17		25		(8)
		Total			856		1,006		(150)
Residential mortgage loans - portfolio
	Performing loans				63		80		(17)
	Loans 90 days or more past due				85		92		(7)
	Nonaccrual loans				91		196		(105)
		Total		$	239	$	368	$	(129)
December 31, 2010
Customer resale agreements				$	866	$	806	$	60
Residential mortgage loans held for sale
	Performing loans				1,844		1,839		5
	Loans 90 days or more past due				33		41		(8)
	Nonaccrual loans				1		2		(1)
		Total			1,878		1,882		(4)
Commercial mortgage loans held for sale (b)
	Performing loans				847		990		(143)
	Nonaccrual loans				30		49		(19)
		Total			877		1,039		(162)
Residential mortgage loans - portfolio
	Performing loans				36		44		(8)
	Loans 90 days or more past due				64		67		(3)
	Nonaccrual loans				16		31		(15)
		Total		$	116	$	142	$	(26)
(a)		These residential mortgage-backed agency hybrid securities are carried as trading securities.
(b)		There were no loans 90 days or more past due within this category at June 30, 2011 or December 31, 2010.

Summary of Additional Fair Value Information Related to Financial Instruments

Additional Fair Value Information Related to Financial Instruments

		June 30, 2011					December 31, 2010
			Carrying		Fair			Carrying		Fair
In millions			Amount		Value			Amount		Value
Assets
Cash and short-term assets			$	11,829	$	11,829		$	9,711	$	9,711
Trading securities				2,075		2,075			1,826		1,826
Investment securities				59,414		59,577			64,262		64,487
Loans held for sale				2,679		2,683			3,492		3,492
Net loans (excludes leases)				139,484		142,563			139,316		141,431
Other assets				4,770		4,770			4,664		4,664
Mortgage servicing rights				1,588		1,594			1,698		1,707
Financial derivatives
	Designated as hedging instruments under GAAP			1,359		1,359			1,255		1,255
	Not designated as hedging instruments under GAAP			4,496		4,496			4,502		4,502

Liabilities
Demand, savings and money market deposits				145,358		145,358			141,990		141,990
Time deposits				36,534		36,870			41,400		41,825
Borrowed funds				35,457		37,617			39,821		41,273
Financial derivatives
	Designated as hedging instruments under GAAP			48		48			85		85
	Not designated as hedging instruments under GAAP			4,815		4,815			4,850		4,850
Unfunded loan commitments and letters of credit				185		185			173		173

- Definition

This item represents certain of the disclosures concerning the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

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- Definition

This element represents quantitative disclosures relating to the Company's election to apply 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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