Fair Value

6 Months Ended

Jun. 30, 2014

Fair Value [Abstract]

Fair Value

Note 8 Fair Value

Fair Value Measurement

GAAP establishes a fair value reporting hierarchy to maximize the use of observable inputs when measuring fair value. There are three levels of inputs used to measure fair value. For more information regarding the fair value hierarchy and the valuation methodologies for assets and liabilities measured at fair value on a recurring basis, see Note 9 Fair Value in our Notes To Consolidated Financial Statements under Item 8 of our 2013 Form 10-K.

Valuation Processes

We have various processes and controls in place to help ensure that fair value is reasonably estimated. Any models used to determine fair values or to validate dealer quotes are subject to review and independent testing as part of our model validation and internal control testing processes. Our Model Risk Management Committee reviews significant models at least annually. In addition, we have teams independent of the tradersthatverify marks and assumptions used for valuations at each period end.

Assets and liabilities measured at fair value, by their nature, result in a higher degree of financial statement volatility. Assets and liabilities classified within Level 3 inherently require the use of various assumptions, estimates and judgments when measuring their fair value. As observable market activity is commonly not available to use when estimating the fair value of Level 3 assets and liabilities, we must estimate fair value using various modeling techniques. These techniques include the use of a variety of inputs/assumptions including credit quality, liquidity, interest rates or other relevant inputs across the entire population of our Level 3 assets and liabilities. Changes in the significant underlying factors or assumptions (either an increase or a decrease) in any of these areas underlying our estimates may result in a significant increase/decrease in the Level 3 fair value measurement of a particular asset and/or liability from period to period.

Financial Instruments Accounted For at Fair Value on a Recurring Basis

A cross-functional team comprised of representatives from Asset & Liability Management, Finance and Market Risk Management oversees the governance of the processes and methodologies used to estimate the fair value of securities and the price validation testing that is performed. This management team reviews pricing sources and trends and the results of validation testing.

For more information regarding the fair value of financial instruments accounted for at fair value on a recurring basis, see Note 9 Fair Value in our Notes To Consolidated Financial Statements under Item 8 of our 2013 Form 10-K.

The following disclosures for financial instruments accounted for at fair value have been updated during the first six monthsof 2014:

Financial Derivatives

In connection with the sales of portions of our Visa Class B common shares, we entered into additional swap agreements with the purchaser of the shares to account for future changes in the value of the Class B common shares resulting from changes in the settlement of certain specified litigation and its effect on the conversion rate of Class B common shares into Visa Class A common shares and to make payments calculated by reference to the market price of the Class A common shares and a fixed rate of interest. The swaps are classified as Level 3 instruments and the fair valuesof the liability positions totaled $108 million at June 30, 2014and $90 million at December 31, 2013, respectively.

Commercial Mortgage Servicing Rights

As of January 1, 2014, PNC made an irrevocable election to subsequently measure all classes of commercial mortgage servicing rights (MSRs) at fair value in order to eliminate any potential measurement mismatch between our economic hedges and the commercial MSRs. The impact of the cumulative-effect adjustment to retained earnings was not material. We will recognize recurring gains/(losses) on changes in the fair value of commercial MSRs as a result of the election. Assumptions incorporated into the commercial valuation model reflect management's best estimate of factors that a market participant would use in valuing the commercial MSRs. Although sales of commercial MSRs do occur, commercial MSRs do not trade in an active, open market with readily observable prices so the precise terms and conditions of sales are not available. Due to the nature of the valuation inputs and the limited availability of market pricing, commercial MSRs are classified as Level 3.

The fair value of commercial MSRs is estimated by using a discounted cash flow model incorporating unobservable inputs for assumptions such as constant prepayment rates, discount rates and other factors. Significant increases/(decreases) in constant prepayment rates and discount rates would result in significantly lower/(higher) commercial MSR value determined based on current market conditions and expectations.

Assets and liabilities measured at fair value on a recurring basis, including instruments for which PNC has elected the fair value option, follow.
Table 81: Fair Value Measurements - Recurring Basis Summary
					June 30, 2014								December 31, 2013
											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		$	4,723	$	644			$	5,367	$	3,460	$	658			$	4,118
		Residential mortgage-backed
			Agency				20,081				20,081				22,831				22,831
			Non-agency				234	$	5,107		5,341				247	$	5,358		5,605
		Commercial mortgage-backed
			Agency				604				604				646				646
			Non-agency				3,558				3,558				4,042				4,042
		Asset-backed					4,819		619		5,438				5,131		641		5,772
		State and municipal					1,580		345		1,925				2,284		333		2,617
		Other debt					1,812		31		1,843				2,505		38		2,543
			Total debt securities		4,723		33,332		6,102		44,157		3,460		38,344		6,370		48,174
		Corporate stocks and other			347		15				362		417		16				433
			Total securities available for sale		5,070		33,347		6,102		44,519		3,877		38,360		6,370		48,607
	Financial derivatives (a) (b)
		Interest rate contracts			28		4,600		39		4,667		25		4,540		34		4,599
		Other contracts					135		2		137				192		2		194
			Total financial derivatives		28		4,735		41		4,804		25		4,732		36		4,793
	Residential mortgage loans held for sale (c)						1,255		4		1,259				1,307		8		1,315
	Trading securities (d)
		Debt (e)			1,317		857		33		2,207		2,159		862		32		3,053
		Equity			21						21		20						20
			Total trading securities		1,338		857		33		2,228		2,179		862		32		3,073
	Trading loans (a)						14				14				6				6
	Residential mortgage servicing rights (f)								967		967						1,087		1,087
	Commercial mortgage servicing rights (f) (g)								515		515
	Commercial mortgage loans held for sale (c)								521		521						586		586
	Equity investments (a) (h)
		Direct investments							1,219		1,219						1,069		1,069
		Indirect investments (i)							574		574						595		595
			Total equity investments						1,793		1,793						1,664		1,664
	Customer resale agreements (j)						194				194				207				207
	Loans (k)						524		360		884				513		512		1,025
	Other assets (a)
		BlackRock Series C Preferred Stock (l)							335		335						332		332
		Other			194		211		8		413		209		184		8		401
			Total other assets		194		211		343		748		209		184		340		733
		Total assets		$	6,630	$	41,137	$	10,679	$	58,446	$	6,290	$	46,171	$	10,635	$	63,096
Liabilities
	Financial derivatives (b) (m)
		Interest rate contracts		$	16	$	3,150	$	7	$	3,173	$	6	$	3,307	$	13	$	3,326
		BlackRock LTIP							335		335						332		332
		Other contracts					214		112		326				182		94		276
			Total financial derivatives		16		3,364		454		3,834		6		3,489		439		3,934
	Trading securities sold short (n)
		Debt			858		17				875		1,341		1				1,342
			Total trading securities sold short		858		17				875		1,341		1				1,342
	Other borrowed funds								170		170						184		184
		Total liabilities		$	874	$	3,381	$	624	$	4,879	$	1,347	$	3,490	$	623	$	5,460
(a)		Included in Other assets on our Consolidated Balance Sheet.
(b)		Amounts at June 30, 2014 and December 31, 2013 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. The net asset amounts were $2.0 billion at June 30, 2014 and $1.7 billion at December 31, 2013, and the net liability amounts were $1.0 billion and $.9 billion, respectively.
(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 $32 million at June 30, 2014 compared with net unrealized gains of $11 million at December 31, 2013.
(e)		Approximately 24% of these securities are residential mortgage-backed securities and 59% are U.S. Treasury and government agencies securities at June 30, 2014. Comparable amounts at December 31, 2013 were 17% and 69%, respectively.
(f)		Included in Other intangible assets on our Consolidated Balance Sheet.
(g)		As of January 1, 2014, PNC made an irrevocable election to measure all classes of commercial MSRs at fair value. Accordingly, beginning with the first quarter of 2014, commercial MSRs are measured at fair value on a recurring basis.
(h)		Our adoption of ASU 2013-08, Financial Services - Investment Companies (Topic 946): Amendments to the Scope, Measurement and Disclosure Requirements, did not result in a change in classification or status of our accounting for investment companies.
(i)		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 related to indirect equity investments was $124 million and related to direct equity investments was $29 million as of June 30, 2014, respectively. Comparable amounts at December 31, 2013 were $128 million and $36 million, respectively.
(j)		Included in Federal funds sold and resale agreements on our Consolidated Balance Sheet. PNC has elected the fair value option for these items.
(k)		Included in Loans on our Consolidated Balance Sheet.
(l)		PNC has elected the fair value option for these shares.
(m)		Included in Other liabilities on our Consolidated Balance Sheet.
(n)		Included in Other borrowed funds on our Consolidated Balance Sheet.

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, 2014 and 2013 follow:
Table 82: Reconciliation of Level 3 Assets and Liabilities
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					506			10					22		(132)				(24)		3		(25)		360		8
	Other assets
		BlackRock Series C
			Preferred Stock			330			5																	335		5
		Other				8																				8
			Total other assets			338			5																	343		5
				Total assets	$	11,052		$	110	(e)	$	44	$	141	$	(254)	$	30	$	(419)	$	4	$	(29)	$	10,679	$	43	(f)
Liabilities
	Financial derivatives (d)				$	440		$	30										$	(16)					$	454	$	16
	Other borrowed funds					181			(7)											(4)						170
				Total liabilities	$	621		$	23	(e)									$	(20)					$	624	$	16	(f)

Three Months Ended June 30, 2013
																											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					2013			Earnings			income		Purchases		Sales		Issuances		Settlements		Level 3 (b)		Level 3 (b)		2013		2013 (c)
Assets
	Securities available for
		sale
		Residential mortgage-
			backed non-agency		$	6,038		$	47		$	(100)							$	(274)					$	5,711	$	(3)
		Commercial mortgage-
			backed non-agency						2											(2)
		Asset-backed				701			1			4								(34)						672		(1)
		State and municipal				330						(2)	$	4						(1)						331
		Other debt				49								1	$	(2)										48
			Total securities
				available for sale		7,118			50			(98)		5		(2)				(311)						6,762		(4)
	Financial derivatives					93			64					1						(105)			$	(2)		51		50
	Residential mortgage
		loans held for sale				44								21		(1)				1	$	3		(38)		30
	Trading securities - Debt					32																				32
	Residential mortgage
		servicing rights				779			208								$	43		(55)						975		208
	Commercial mortgage
		loans held for sale				769			(13)							(100)				(21)						635		(14)
	Equity investments
		Direct investments				1,193			15					49		(142)										1,115
		Indirect investments				627			20					6		(30)										623		20
			Total equity
				investments		1,820			35					55		(172)										1,738		20
	Loans					272			16											(10)		45		(12)		311		12
	Other assets
		BlackRock Series C
			Preferred Stock			270																				270
		Other				9						(1)														8
			Total other assets			279						(1)														278
				Total assets	$	11,206		$	360	(e)	$	(99)	$	82	$	(275)	$	43	$	(501)	$	48	$	(52)	$	10,812	$	272	(f)
Liabilities
	Financial derivatives (d)				$	400		$	84						$	1			$	(102)					$	383	$	16
	Other borrowed funds					130			3											62						195
				Total liabilities	$	530		$	87	(e)					$	1			$	(40)					$	578	$	16	(f)

Six 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				Dec. 31,				Included in			comprehensive										into		out of		June 30,		at June 30,
In millions					2013				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			$	5,358		$	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	(g)					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						512			19					54		(138)				(43)		10		(54)		360		14
	Other assets
		BlackRock Series C
			Preferred Stock				332			3																	335		3
		Other					8																				8
			Total other assets				340			3																	343		3
				Total assets		$	10,635		$	195	(e)	$	118	$	277	$	(303)	$	60	$	(250)	$	14	$	(67)	$	10,679	$	59	(f)
Liabilities
	Financial derivatives (d)					$	439		$	70						$	1			$	(56)					$	454	$	22
	Other borrowed funds						184			(3)											(11)						170
				Total liabilities		$	623		$	67	(e)					$	1			$	(67)					$	624	$	22	(f)

Six Months Ended June 30, 2013
																											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		June 30,		at June 30,
In millions					2012			Earnings			income		Purchases		Sales		Issuances		Settlements		Level 3 (b)		Level 3 (b)		2013		2013 (c)
Assets
	Securities available for
		sale
		Residential mortgage-
			backed non-agency		$	6,107		$	90		$	39							$	(525)					$	5,711	$	(10)
		Commercial mortgage
			backed non-agency						3											(3)
		Asset-backed				708			4			29								(69)						672		(4)
		State and municipal				339			1				$	4						(13)						331
		Other debt				48								2	$	(2)										48
			Total securities
				available for sale		7,202			98			68		6		(2)				(610)						6,762		(14)
	Financial derivatives					106			153					2						(208)			$	(2)		51		113
	Residential mortgage
		loans held for sale				27			1					49		(1)				1	$	6		(53)		30		1
	Trading securities - Debt					32																				32
	Residential mortgage
		servicing rights				650			286					64			$	80		(105)						975		279
	Commercial mortgage
		loans held for sale				772			(12)							(102)				(23)						635		(13)
	Equity investments
		Direct investments				1,171			34					63		(153)										1,115		14
		Indirect investments				642			33					10		(62)										623		33
			Total equity
				investments		1,813			67					73		(215)										1,738		47
	Loans					134			21											115		57		(16)		311		17
	Other assets
		BlackRock Series C
			Preferred Stock			243			60											(33)						270		60
		Other				9						(1)														8
			Total other assets			252			60			(1)								(33)						278		60
				Total assets	$	10,988		$	674	(e)	$	67	$	194	$	(320)	$	80	$	(863)	$	63	$	(71)	$	10,812	$	490	(f)
Liabilities
	Financial derivatives (d)				$	376		$	160						$	1			$	(154)					$	383	$	77
	Other borrowed funds								3											192						195
				Total liabilities	$	376		$	163	(e)					$	1			$	38					$	578	$	77	(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 $87 million for the second quarter of 2014, while for the first six months of 2014 there were $128 million of net gains (realized and unrealized) included in earnings. The comparative amounts included net gains (realized and unrealized) of $273 million for second quarter 2013 and net gains (realized and unrealized) of $511 million for the first six months of 2013. These amounts also included amortization and accretion of $44 million for the second quarter of 2014 and $85 million for the first six months of 2014. The comparative amounts were $54 million for the second quarter of 2013 and $111 million for the first six months of 2013. 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 $27 million for the second quarter of 2014, while for the first six months of 2014
			there were $37 million of net unrealized gains. The comparative amounts included net unrealized gains of $256 million for the second quarter of 2013 and net unrealized gains of $413 million for the first six months of 2013. These amounts were included in Noninterest income on the Consolidated Income Statement.
(g)			Settlements relating to commercial MSRs of $552 million represent 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 9 Goodwill and Other Intangible Assets for additional information on commercial MSRs.

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. During the first six months of 2014, there were transfers of residential mortgage loans held for sale from Level 2 to Level 3 of$4 millionas a result of reduced marketability in the secondary residential mortgage sales market which reduced the observability of valuation inputs. Also duringthe first six months of 2014,there were transfers out of Level 3 residential mortgage loans held for sale and loans of $3 million and $54 million, respectively, primarily due to the transfer of residential mortgage loans held for sale and loans to OREO. In addition, there was approximately $10 million of Level 3 residential mortgage loans held for sale reclassified to Level 3 loans during the first six months of 2014 due to the loans being reclassified from held for sale loans to held in portfolio loans. This amount was included in Transfers out of Level 3 residential mortgages loans held for sale and Transfers into Level 3 loans within Table 82.

During the first six monthsof 2013, there were transfers of residential mortgage loans held for sale and loans from Level 2 to Level 3 of $6 million and $11million, respectively, as a result of reduced marketability in the secondary residential mortgage sales market which reduced the observability of valuation inputs. Also during the first six months of 2013, there were transfers out of Level 3 residential mortgage loans held for sale and loans of $7 million and $16 million, respectively, primarily due to the transfer of residential mortgage loans held for sale and loans to OREO. In addition, there was approximately $46 million of Level 3 residential mortgage loans held for sale reclassified to Level 3 loans during the first six months of 2013 due to the loans being reclassified from held for sale loans to held in portfolio loans. This amount was included in Transfers out of Level 3 residential mortgage loans held for sale and Transfers into Level 3 loans within Table 82.

Quantitative information about the significant unobservable inputs within Level 3 recurring assets and liabilities follows.
Table 83: Fair Value Measurements - Recurring Quantitative Information
June 30, 2014
Level 3 Instruments Only
Dollars in millions			Fair Value		Valuation Techniques		Unobservable Inputs		Range (Weighted Average)
	Residential mortgage-backed
		non-agency securities	$	5,107		Priced by a third-party vendor	Constant prepayment rate (CPR)			1.0%-28.9% (6.9%)	(a)
						using a discounted cash flow	Constant default rate (CDR)			0%-19.3% (6.1%)	(a)
						pricing model (a)	Loss severity			6.1%-96.4% (52.8%)	(a)
							Spread over the benchmark curve (b)			223bps weighted average	(a)
	Asset-backed securities			619		Priced by a third-party vendor	Constant prepayment rate (CPR)			1.0%-15.7% (6.0%)	(a)
						using a discounted cash flow	Constant default rate (CDR)			1.0%-13.9% (7.9%)	(a)
						pricing model (a)	Loss severity			14.6%-100% (72.2%)	(a)
							Spread over the benchmark curve (b)			288bps weighted average	(a)
	State and municipal securities			132		Discounted cash flow	Spread over the benchmark curve (b)			60bps-195bps (74bps)
				213		Consensus pricing (c)	Credit and Liquidity discount			0%-25.0% (2.2%)
	Other debt securities			31		Consensus pricing (c)	Credit and Liquidity discount			7.0%-95.0% (88.4%)
	Trading securities - Debt			33		Consensus pricing (c)	Credit and Liquidity discount			2.0%-20.0% (3.4%)
	Residential mortgage servicing rights			967		Discounted cash flow	Constant prepayment rate (CPR)			3.5%-48.6% (9.1%)
							Spread over the benchmark curve (b)			889bps-1,889bps (1,040bps)
	Commercial mortgage servicing			515		Discounted cash flow	Constant prepayment rate (CPR)			6.4%-14.4% (8.2%)
		rights					Discount rate			4.4%-8.9% (6.7%)
	Commercial mortgage loans held
		for sale		521		Discounted cash flow	Spread over the benchmark curve (b)			455bps-10,650bps (1,174bps)
	Equity investments - Direct investments			1,219		Multiple of adjusted earnings	Multiple of earnings			3.2x-12.5x (7.3x)
	Equity investments - Indirect (d)			574		Net asset value	Net asset value
	Loans - Residential real estate			100		Consensus pricing (c)	Cumulative default rate			2.0%-100% (92.6%)
							Loss severity			0%-100% (43.7%)
							Discount rate			4.1%-12.0% (10.8%)
				143		Discounted cash flow	Loss severity			8.0% weighted average
							Discount rate			10.0% weighted average
	Loans - Home equity (e)			117		Consensus pricing (c)	Credit and Liquidity discount			36.0%-99.0% (57.0%)
	BlackRock Series C Preferred Stock			335		Consensus pricing (c)	Liquidity discount			20.0%
	BlackRock LTIP			(335)		Consensus pricing (c)	Liquidity discount			20.0%
	Swaps related to sales of certain Visa			(108)		Discounted cash flow	Estimated conversion factor of
		Class B common shares						Class B shares into Class A shares		41.5%
							Estimated growth rate of Visa
								Class A share price		14.0%
	Other borrowed funds (e)			(170)		Consensus pricing (c)	Credit and Liquidity discount			0%-99.0% (21.0%)
							Spread over the benchmark curve (b)			43bps
	Insignificant Level 3 assets, net of
		liabilities (f)		42
Total Level 3 assets, net of liabilities (g)			$	10,055

December 31, 2013

Level 3 Instruments Only

Dollars in millions

Fair Value

Valuation Techniques

Unobservable Inputs

Range (Weighted Average)

Residential mortgage-backed

non-agency securities

$

5,358

Priced by a third-party vendor

Constant prepayment rate (CPR)

1.0%-32.1% (6.0%)

(a)

using a discounted cash flow

Constant default rate (CDR)

0%-21.9% (6.6%)

(a)

pricing model (a)

Loss severity

6.1%-92.9% (52.3%)

(a)

Spread over the benchmark curve (b)

237bps weighted average

(a)

Asset-backed securities

641

Priced by a third-party vendor

Constant prepayment rate (CPR)

1.0%-11.1% (5.0%)

(a)

using a discounted cash flow

Constant default rate (CDR)

1.0%-13.9% (8.7%)

(a)

pricing model (a)

Loss severity

10.0%-100% (70.1%)

(a)

Spread over the benchmark curve (b)

326bps weighted average

(a)

State and municipal securities

132

Discounted cash flow

Spread over the benchmark curve (b)

80bps-240bps (97bps)

201

Consensus pricing (c)

Credit and Liquidity discount

0%-25.0% (8.3%)

Other debt securities

38

Consensus pricing (c)

Credit and Liquidity discount

7.0%-95.0% (88.4%)

Trading securities - Debt

32

Consensus pricing (c)

Credit and Liquidity discount

0%-20.0% (8.3%)

Residential mortgage servicing rights

1,087

Discounted cash flow

Constant prepayment rate (CPR)

2.2%-32.9% (7.6%)

Spread over the benchmark curve (b)

889bps-1,888bps (1,024bps)

Commercial mortgage loans held

for sale

586

Discounted cash flow

Spread over the benchmark curve (b)

460bps-6,655bps (972bps)

Equity investments - Direct investments

1,069

Multiple of adjusted earnings

Multiple of earnings

4.5x-10.8x (7.2x)

Equity investments - Indirect (d)

595

Net asset value

Net asset value

Loans - Residential real estate

225

Consensus pricing (c)

Cumulative default rate

2.0%-100% (80.0%)

Loss severity

0%-100% (48.4%)

Discount rate

12.0%-13.0% (12.2%)

164

Discounted cash flow

Loss severity

8.0% weighted average

Discount rate

10.0% weighted average

Loans - Home equity (e)

123

Consensus pricing (c)

Credit and Liquidity discount

36.0%-99.0% (55.0%)

BlackRock Series C Preferred Stock

332

Consensus pricing (c)

Liquidity discount

20.0%

BlackRock LTIP

(332)

Consensus pricing (c)

Liquidity discount

20.0%

Swaps related to sales of certain

(90)

Discounted cash flow

Estimated conversion factor of

Visa Class B common shares

Class B shares into Class A shares

41.7%

Estimated growth rate of Visa Class

A share price

8.6%

Other borrowed funds (e)

(184)

Consensus pricing (c)

Credit and Liquidity discount

0%-99.0% (18.0%)

Spread over the benchmark curve (b)

13bps

Insignificant Level 3 assets, net of

liabilities (f)

35

Total Level 3 assets, net of liabilities (g)

$

10,012

(a)

Level 3 residential mortgage-backed non-agency and asset-backed securities with fair values as of June 30, 2014 totaling $4,437 million and $587 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, 2013 were $4,672 million and $610 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 9 Fair Value in our Notes To Consolidated Financial Statements under Item 8 of our 2013 Form 10-K. Certain Level 3 residential mortgage-backed non-agency and asset-backed securities with fair values as of June 30, 2014 of $670 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, 2013 were $686 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)

Primarily includes a consolidated Non-agency securitization.

(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, residential mortgage loans held for sale and other assets. For additional information, please see commercial mortgage loan commitment assets and liabilities, residential mortgage loan commitment assets, interest rate option assets and liabilities and risk participation agreement assets and liabilities within the Financial Derivatives discussion, and the Residential Mortgage Loans Held for Sale and Other Assets and Liabilities discussions included in Note 9 Fair Value in our Notes To Consolidated Financial Statements under Item 8 of our 2013 Form 10-K.

(g)

Consisted of total Level 3 assets of $10,679 million and total Level 3 liabilities of $624 million as of June 30, 2014 and $10,635 million and $623 million as of December 31, 2013, respectively.

Other Financial Assets Accounted for at Fair Value on a Nonrecurring Basis

We may be required to measure certain other financial assets at fair value on a nonrecurring basis. These adjustments to fair value usually result from the application of lower-of-cost-or-fair value accounting or write-downs of individual assets due to impairment and are included in Table 84and Table 85.For more information regarding the valuation methodologies for assets measured at fair value on a nonrecurring basis, see Note 9 Fair Value in our Notes To Consolidated Financial Statements under Item 8 of our 2013 Form 10-K.

Table 84: 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			2014		2013		2014		2013		2014		2013
Assets
	Nonaccrual loans		$	79	$	35	$	(11)	$	(9)	$	(15)	$	(10)
	Loans held for sale			157		224		(1)		(11)		(1)		(11)
	Equity investments					6		(3)		(3)		(3)		(3)
	Commercial mortgage servicing rights (b)					543				60				73
	OREO and foreclosed assets			149		181		(7)		(19)		(15)		(33)
	Long-lived assets held for sale			21		51		(6)		(12)		(9)		(27)
		Total assets	$	406	$	1,040	$	(28)	$	6	$	(43)	$	(11)
(a)		All Level 3 as of June 30, 2014 and December 31, 2013, except for $10 million included in Loans held for sale which are categorized as Level 2 as of June 30, 2014.
(b)		As of January 1, 2014, PNC made an irrevocable election to measure all classes of commercial MSRs at fair value. Accordingly, beginning with the first quarter of 2014, commercial MSRs are measured at fair value on a recurring basis.

Quantitative information about the significant unobservable inputs within Level 3 nonrecurring assets follows.
Table 85: Fair Value Measurements - Nonrecurring Quantitative Information
Level 3 Instruments Only
Dollars in millions			Fair Value		Valuation Techniques		Unobservable Inputs	Range (Weighted Average)
June 30, 2014
Assets
	Nonaccrual loans (a)		$	56		LGD percentage (b)	Loss severity		9.1%-72.1% (34.1%)
	Loans held for sale			147		Discounted cash flow	Spread over the benchmark curve (c)		22bps-550bps (47bps)
							Embedded servicing value		.8%-3.5% (3.3%)
	Other (d)			193		Fair value of property or collateral	Appraised value/sales price		Not meaningful
		Total Assets	$	396
December 31, 2013
Assets
	Nonaccrual loans (a)		$	21		LGD percentage (b)	Loss severity		7.0%-84.9% (36.6%)
	Loans held for sale			224		Discounted cash flow	Spread over the benchmark curve (c)		35bps-220bps (144bps)
							Embedded servicing value		.8%-3.5% (2.0%)
	Equity investments			6		Discounted cash flow	Market rate of return		6.5%
	Commercial mortgage			543		Discounted cash flow	Constant prepayment rate (CPR)		7.1%-11.8% (7.7%)
		servicing rights (e)					Discount rate		5.4%-7.6% (6.7%)
	Other (d)			246		Fair value of property or collateral	Appraised value/sales price		Not meaningful
		Total Assets	$	1,040
(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)	The assumed yield spread over benchmark curve for each instrument is generally intended to incorporate non-interest-rate risks such as credit and liquidity risks.
(d)	Other included Nonaccrual loans of $23 million, OREO and foreclosed assets of $149 million and Long-lived assets held for sale of $21 million as of June 30, 2014. Comparably, as of December 31, 2013, Other included Nonaccrual loans of $14 million, OREO and foreclosed assets of $181 million and Long-lived assets held for sale of $51 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.
(e)	As of January 1, 2014, PNC made an irrevocable election to measure all classes of commercial MSRs at fair value. Accordingly, beginning with the first quarter of 2014, commercial MSRs are measured at fair value on a recurring basis.

Financial Instruments Accounted For Under Fair Value Option

For more information regarding financial instruments we elected to measure at fair value under fair value option on our Consolidated Balance Sheet, see Note 9 Fair Value in our Notes To Consolidated Financial Statements under Item 8 of our 2013 Form 10-K.

The changes in fair value included in Noninterest income for items for which we elected the fair value option are included in the table below.

Table 86: 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			2014		2013		2014		2013
Assets
	Customer resale agreements				$	(3)	$	(1)	$	(5)
	Trading loans		$	1		1		1		2
	Commercial mortgage loans held for sale			5		(13)		7		(12)
	Residential mortgage loans held for sale (b)			64		(65)		129		(8)
	Residential mortgage loans – portfolio (b)			59		26		87		32
	BlackRock Series C Preferred Stock			5				3		60
Liabilities
	Other borrowed funds			7		(3)		3		(3)
(a)		The impact on earnings of offsetting hedged items or hedging instruments is not reflected in these amounts.
(b)		Prior periods were corrected for the allocation between Residential mortgage loans held for sale and Residential mortgage loans - portfolio. This resulted in a reclass of $13 million from held for sale to the portfolio line item.

Fair values and aggregate unpaid principal balances of items for which we elected the fair value option follow.
Table 87: Fair Value Option - Fair Value and Principal Balances
							Aggregate Unpaid
In millions				Fair Value			Principal Balance		Difference
June 30, 2014
Assets
	Customer resale agreements				$	194	$	184	$	10
	Trading loans					14		14
	Residential mortgage loans held for sale
		Performing loans				1,250		1,188		62
		Accruing loans 90 days or more past due				2		2
		Nonaccrual loans				7		8		(1)
			Total			1,259		1,198		61
	Commercial mortgage loans held for sale (a)
		Performing loans				517		596		(79)
		Nonaccrual loans				4		9		(5)
			Total			521		605		(84)
	Residential mortgage loans - portfolio
		Performing loans				178		262		(84)
		Accruing loans 90 days or more past due (b)				450		529		(79)
		Nonaccrual loans				256		404		(148)
			Total			884		1,195		(311)
Liabilities
	Other borrowed funds (c)				$	170	$	215	$	(45)
December 31, 2013
Assets
	Customer resale agreements				$	207	$	196	$	11
	Trading loans					6		6
	Residential mortgage loans held for sale
		Performing loans				1,298		1,260		38
		Accruing loans 90 days or more past due				2		2
		Nonaccrual loans				15		18		(3)
			Total			1,315		1,280		35
	Commercial mortgage loans held for sale (a)
		Performing loans				583		669		(86)
		Nonaccrual loans				3		9		(6)
			Total			586		678		(92)
	Residential mortgage loans - portfolio
		Performing loans				215		313		(98)
		Accruing loans 90 days or more past due (b)				445		517		(72)
		Nonaccrual loans				365		598		(233)
		Total				1,025		1,428		(403)
Liabilities
	Other borrowed funds (c)				$	184	$	225	$	(41)
(a)	There were no accruing loans 90 days or more past due within this category at June 30, 2014 or December 31, 2013.
(b)	Included in this population are government insured loans and non-government insured home equity loans. Loans that are insured by the government result in a higher fair value than those that do not have that guarantee.
(c)	Related to a Non-agency securitization that PNC consolidated in the first quarter of 2013.

The following table provides additional information regarding the fair value and classification within the fair value hierarchy of financial instruments.
Table 88: Additional Fair Value Information Related to Financial Instruments
		Carrying		Fair Value
In millions		Amount			Total			Level 1		Level 2		Level 3
June 30, 2014
Assets
Cash and due from banks		$	4,892	$	4,892		$	4,892
Short-term assets			19,367		19,367				$	19,367
Trading securities			2,228		2,228			1,338		857	$	33
Investment securities			56,602		56,935			5,339		45,482		6,114
Trading loans			14		14					14
Loans held for sale			2,228		2,230					1,312		918
Net loans (excludes leases)			189,793		192,128					524		191,604
Other assets			4,270		4,899	(a)		194		1,828		2,877
Financial derivatives
	Designated as hedging instruments under GAAP		1,228		1,228					1,228
	Not designated as hedging instruments under GAAP		3,576		3,576			28		3,507		41
	Total Assets	$	284,198	$	287,497		$	11,791	$	74,119	$	201,587
Liabilities
Demand, savings and money market deposits		$	200,524	$	200,524				$	200,524
Time deposits			22,030		22,053					22,053
Borrowed funds			49,365		50,205		$	858		47,848	$	1,499
Financial derivatives
	Designated as hedging instruments under GAAP		264		264					264
	Not designated as hedging instruments under GAAP		3,570		3,570			16		3,100		454
Unfunded loan commitments and letters of credit			213		213							213
	Total Liabilities	$	275,966	$	276,829		$	874	$	273,789	$	2,166
December 31, 2013
Assets
Cash and due from banks		$	4,043	$	4,043		$	4,043
Short-term assets			15,113		15,113				$	15,113
Trading securities			3,073		3,073			2,179		862	$	32
Investment securities			60,294		60,372			4,120		49,865		6,387
Trading loans			6		6					6
Loans held for sale			2,255		2,256					1,307		949
Net loans (excludes leases)			184,305		185,887					513		185,374
Other assets			4,162		4,975	(a)		209		1,791		2,975
Financial derivatives
	Designated as hedging instruments under GAAP		1,189		1,189					1,189
	Not designated as hedging instruments under GAAP		3,604		3,604			25		3,543		36
	Total Assets	$	278,044	$	280,518		$	10,576	$	74,189	$	195,753
Liabilities
Demand, savings and money market deposits		$	197,465	$	197,465				$	197,465
Time deposits			23,466		23,487					23,487
Borrowed funds			46,427		47,258		$	1,341		44,431	$	1,486
Financial derivatives
	Designated as hedging instruments under GAAP		364		364					364
	Not designated as hedging instruments under GAAP		3,570		3,570			6		3,125		439
Unfunded loan commitments and letters of credit			224		224							224
	Total Liabilities	$	271,516	$	272,368		$	1,347	$	268,872	$	2,149
(a)	Includes $741 million for Visa Class B common shares, which was estimated solely based upon the June 30, 2014 closing price for the Visa Class A common shares and the current Visa Class B common shares conversion rate. The Class B common shares are transferable only under limited circumstances, which could impact the aforementioned estimate, until they can be converted into Class A common shares. The comparable amount at December 31, 2013 was $971 million. For additional information, see Note 24 Commitments and Guarantees in our Notes To Consolidated Financial Statements under Item 8 of our 2013 Form 10-K.

The aggregate fair value of financial instruments in Table 88does not represent thetotal market value of PNC's assets and liabilities as the table excludes the following:

• 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 fair value amounts for financial instruments and their classifications within the fair value hierarchy, see Note 9 Fair Value in our Notes To Consolidated Financial Statements under Item 8 of our 2013 Form 10-K.

The aggregate carrying value of our FHLB and FRB stock was $1.6 billion at bothJune 30,2014 and December 31, 2013, which approximates fair value at each date.