Asset Quality

12 Months Ended

Dec. 31, 2014

Note 3 Asset Quality

Asset Quality

We closely monitor economic conditions and loan performance trends to manage and evaluate our exposure to credit risk. Trends in delinquency rates may be a key indicator, among other considerations, of credit risk within the loan portfolios. The measurement of delinquency status is based on the contractual terms of each loan. Loans that are 30 days or more past due in terms of payment are considered delinquent. Loan delinquencies exclude loans held for sale, purchased impaired loans, nonperforming loans and loans accounted for under the fair value option which are on nonaccrual status, but include government insured or guaranteed loans and accruing loans accounted for under the fair value option.

The trends in nonperforming assets represent another key indicator of the potential for future credit losses. Nonperforming assets include nonperforming loans, OREO and foreclosed assets. Nonperforming loans are those loans accounted for at amortized cost whose credit quality has deteriorated to the extent that full collection of contractual principal and interest is not probable. Interest income is not recognized on these loans. Loans accounted for under the fair value option are reported as performing loans as these loans are accounted for at fair value. However, when nonaccrual criteria is met, interest income is not recognized on these loans. Additionally, certain government insured or guaranteed loans for which we expect to collect substantially all principal and interest are not reported as nonperforming loans and continue to accrue interest. Purchased impaired loans are excluded from nonperforming loans as we are currently accreting interest income over the expected life of the loans. See Note 4 Purchased Loans for further information.

See Note 1 Accounting Policies for additional delinquency, nonperforming, and charge-off information.

The following tables display the delinquency status of our loans and our nonperforming assets at December 31, 2014 and December 31, 2013, respectively.

Table 60: Analysis of Loan Portfolio (a)

			Accruing
			Current or Less			30-59			60-89				90 Days				Total							Fair Value Option				Purchased				Total
			Than 30 Days			Days			Days				Or More				Past			Nonperforming				Nonaccrual				Impaired				Loans
Dollars in millions				Past Due		Past Due			Past Due				Past Due				Due (b)				Loans			Loans (c)				Loans			(d) (e)
December 31, 2014
	Commercial Lending
		Commercial	$	96,922		$	73			$	24			$	37		$	134			$	290						$	74		$	97,420
		Commercial real estate		22,667			23				2							25				334							236			23,262
		Equipment lease financing		7,672			11				1							12				2										7,686
	Total commercial lending			127,261			107				27				37			171				626							310			128,368
	Consumer Lending
		Home equity		31,474			70				32							102				1,112							1,989			34,677
		Residential real estate (f)		9,900			163				68				742			973				706			$	269			2,559			14,407
		Credit card		4,528			28				20				33			81				3										4,612
		Other consumer (g)		22,071			214				112				293			619				63										22,753
	Total consumer lending			67,973			475				232				1,068			1,775				1,884				269			4,548			76,449
		Total	$	195,234		$	582			$	259			$	1,105		$	1,946			$	2,510			$	269		$	4,858		$	204,817
	Percentage of total loans			95.32	%		.28	%			.13	%			.54	%		0.95	%			1.23	%			.13	%		2.37	%		100.00	%
December 31, 2013
	Commercial Lending
		Commercial	$	87,621		$	81			$	20			$	42		$	143			$	457						$	157		$	88,378
		Commercial real estate		20,090			54				11				2			67				518							516			21,191
		Equipment lease financing		7,538			31				2							33				5										7,576
	Total commercial lending			115,249			166				33				44			243				980							673			117,145
	Consumer Lending
		Home equity		32,877			86				34							120				1,139							2,311			36,447
		Residential real estate (f)		9,311			217				87				1,060			1,364				904			$	365			3,121			15,065
		Credit card		4,339			29				19				34			82				4										4,425
		Other consumer (g)		21,788			216				112				353			681				61							1			22,531
	Total consumer lending			68,315			548				252				1,447			2,247				2,108				365			5,433			78,468
		Total	$	183,564		$	714			$	285			$	1,491		$	2,490			$	3,088			$	365		$	6,106		$	195,613
	Percentage of total loans			93.83	%		.37	%			.15	%			.76	%		1.28	%			1.58	%			.19	%		3.12	%		100.00	%
(a)		Amounts in table represent recorded investment and exclude loans held for sale.
(b)		Past due loan amounts exclude purchased impaired loans, even if contractually past due (or if we do not expect to receive payment in full based on the original contractual terms), as we are currently accreting interest income over the expected life of the loans.
(c)		Consumer loans accounted for under the fair value option for which we do not expect to collect substantially all principal and interest are subject to nonaccrual accounting and classification upon meeting any of our nonaccrual policies. Given that these loans are not accounted for at amortized cost, these loans have been excluded from the nonperforming loan population.
(d)		Net of unearned income, net deferred loan fees, unamortized discounts and premiums, and purchase discounts and premiums totaling $1.7 billion and $2.1 billion at
		December 31, 2014 and December 31, 2013, respectively.
(e)		Future accretable yield related to purchased impaired loans is not included in the analysis of loan portfolio.
(f)		Past due loan amounts at December 31, 2014 include government insured or guaranteed Residential real estate mortgages totaling $68 million for 30 to 59 days past due, $43 million for 60 to 89 days past due and $719 million for 90 days or more past due. Past due loan amounts at December 31, 2013 include government insured or guaranteed Residential real estate mortgages totaling $105 million for 30 to 59 days past due, $57 million for 60 to 89 days past due and $1,025 million for 90 days or more past due.
(g)		Past due loan amounts at December 31, 2014 include government insured or guaranteed Other consumer loans totaling $152 million for 30 to 59 days past due, $93 million for 60 to 89 days past due and $277 million for 90 days or more past due. Past due loan amounts at December 31, 2013 include government insured or guaranteed Other consumer loans totaling $154 million for 30 to 59 days past due, $94 million for 60 to 89 days past due and $339 million for 90 days or more past due.

In the normal course of business, we originate or purchase loan products with contractual characteristics that, when concentrated, may increase our exposure as a holder of those loan products. Possible product features that may create a concentration of credit risk would include a high original or updated LTV ratio, terms that may expose the borrower to future increases in repayments above increases in market interest rates, and interest-only loans, among others. We also originate home equity and residential real estate loans that are concentrated in our primary geographic markets.

We originate interest-only loans to commercial borrowers. Such credit arrangements are usually designed to match borrower cash flow expectations (e.g., working capital lines, revolvers). These products are standard in the financial services industry and product features are considered during the underwriting process to mitigate the increased risk that the interest-only feature may result in borrowers not being able to make interest and principal payments when due. We do not believe that these product features create a concentration of credit risk.

At December 31, 2014, we pledged $19.2 billion of commercial loans to the Federal Reserve Bank (FRB) and $52.8 billion of residential real estate and other loans to the Federal Home Loan Bank (FHLB) as collateral for the contingent ability to borrow, if necessary. The comparable amounts at December 31, 2013 were $23.4 billion and $40.4 billion, respectively.

Table 61: Nonperforming Assets

				December 31			December 31
Dollars in millions					2014			2013
Nonperforming loans
	Commercial lending
		Commercial		$	290		$	457
		Commercial real estate			334			518
		Equipment lease financing			2			5
			Total commercial lending		626			980
	Consumer lending (a)
		Home equity			1,112			1,139
		Residential real estate			706			904
		Credit card			3			4
		Other consumer			63			61
			Total consumer lending		1,884			2,108
Total nonperforming loans (b)					2,510			3,088
OREO and foreclosed assets
	Other real estate owned (OREO) (c)				351			360
	Foreclosed and other assets				19			9
			Total OREO and foreclosed assets		370			369
Total nonperforming assets				$	2,880		$	3,457
Nonperforming loans to total loans					1.23	%		1.58	%
Nonperforming assets to total loans, OREO and foreclosed assets					1.40			1.76
Nonperforming assets to total assets					.83			1.08
Interest on nonperforming loans
	Computed on original terms				125			163
	Recognized prior to nonperforming status				25			30
(a)	Excludes most consumer loans and lines of credit, not secured by residential real estate, which are charged off after 120 to 180 days past due and are not placed on nonperforming status.
(b)	Nonperforming loans exclude certain government insured or guaranteed loans, loans held for sale, loans accounted for under the fair value option and purchased impaired loans.
(c)	OREO excludes $194 million and $245 million at December 31, 2014 and December 31, 2013, respectively, related to residential real estate that was acquired by us upon foreclosure of serviced loans because they are insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) or guaranteed by the Department of Housing and Urban Development (HUD).

Nonperforming loans also include certain loans whose terms have been restructured in a manner that grants a concession to a borrower experiencing financial difficulties. In accordance with applicable accounting guidance, these loans are considered TDRs. See Note 1 Accounting Policies and the TDR section of this Note 3 for additional information. For the twelve months ended December 31, 2014, $1.2 billion of Consumer loans held for sale, loans accounted for under the fair value option, pooled purchased impaired loans, as well as certain government insured or guaranteed loans which were evaluated for TDR consideration, are not classified as TDRs. The comparable amount for the twelve months ended December 31, 2013 was $2.3 billion.

Total nonperforming loans in the nonperforming assets table above include TDRs of $1.4 billion at December 31, 2014 and $1.5 billion at December 31, 2013. TDRs that are performing, including all credit card TDR loans, totaled $1.2 billion at December 31, 2014 and December 31, 2013, respectively, and are excluded from nonperforming loans. These performing TDR loans, excluding credit cards which are not placed on nonaccrual status as permitted by regulatory guidance, have demonstrated a period of at least six months of consecutive performance under the restructured terms. Loans where borrowers have been discharged from personal liability through Chapter 7 bankruptcy and have not formally reaffirmed their loan obligations to PNC and loans to borrowers not currently obligated to make both principal and interest payments under the restructured terms are not returned to accrual status.

Additional Asset Quality Indicators

We have two overall portfolio segments – Commercial Lending and Consumer Lending. Each of these two segments is comprised of multiple loan classes. Classes are characterized by similarities in initial measurement, risk attributes and the manner in which we monitor and assess credit risk. The Commercial Lending segment is comprised of the commercial, commercial real estate, equipment lease financing, and commercial purchased impaired loan classes. The Consumer Lending segment is comprised of the home equity, residential real estate, credit card, other consumer, and consumer purchased impaired loan classes. Asset quality indicators for each of these loan classes are discussed in more detail below.

Commercial Lending Asset Classes

Commercial Loan Class

For commercial loans, we monitor the performance of the borrower in a disciplined and regular manner based upon the level of credit risk inherent in the loan. To evaluate the level of credit risk, we assign an internal risk rating reflecting the borrower’s PD and LGD. This two-dimensional credit risk rating methodology provides granularity in the risk monitoring process on an ongoing basis. These ratings are reviewed and updated on a risk-adjusted basis, generally at least once per year. Additionally, no less frequently than on an annual basis, we review PD rates related to each rating grade based upon internal historical data. These rates are updated as needed and augmented by market data as deemed necessary. For small balance homogenous pools of commercial loans, mortgages and leases, we apply statistical modeling to assist in determining the probability of default within these pools. Further, on a periodic basis, we update our LGD estimates associated with each rating grade based upon historical data. The combination of the PD and LGD ratings assigned to a commercial loan, capturing both the combination of expectations of default and loss severity in event of default, reflects the relative estimated likelihood of loss for that loan at the reporting date. In general, loans with better PD and LGD tend to have a lower likelihood of loss compared to loans with worse PD and LGD. The loss amount also considers exposure at date of default, which we also periodically update based upon historical data.

Based upon the amount of the lending arrangement and our risk rating assessment, we follow a formal schedule of written periodic review. Quarterly, we conduct formal reviews of a market's or business unit's entire loan portfolio, focusing on those loans which we perceive to be of higher risk, based upon PDs and LGDs, or loans for which credit quality is weakening. If circumstances warrant, it is our practice to review any customer obligation and its level of credit risk more frequently. We attempt to proactively manage our loans by using various procedures that are customized to the risk of a given loan, including ongoing outreach, contact, and assessment of obligor financial conditions, collateral inspection and appraisal.

Commercial Real Estate Loan Class

We manage credit risk associated with our commercial real estate projects and commercial mortgage activities similar to commercial loans by analyzing PD and LGD. Additionally, risks connected with commercial real estate projects and commercial mortgage activities tend to be correlated to the loan structure and collateral location, project progress and business environment. As a result, these attributes are also monitored and utilized in assessing credit risk.

As with the commercial class, a formal schedule of periodic review is also performed to assess market/geographic risk and business unit/industry risk. Often as a result of these overviews, more in-depth reviews and increased scrutiny are placed on areas of higher risk, including adverse changes in risk ratings, deteriorating operating trends, and/or areas that concern management. These reviews are designed to assess risk and take actions to mitigate our exposure to such risks.

Equipment Lease Financing Loan Class

We manage credit risk associated with our equipment lease financing loan class similar to commercial loans by analyzing PD and LGD.

Based upon the dollar amount of the lease and of the level of credit risk, we follow a formal schedule of periodic review. Generally, this occurs quarterly, although we have established practices to review such credit risk more frequently if circumstances warrant. Our review process entails analysis of the following factors: equipment value/residual value, exposure levels, jurisdiction risk, industry risk, guarantor requirements, and regulatory compliance.

Commercial Purchased Impaired Loan Class

Estimates of the expected cash flows primarily determine the valuation of commercial purchased impaired loans. Commercial cash flow estimates are influenced by a number of credit related items, which include but are not limited to: estimated collateral value, receipt of additional collateral, secondary trading prices, circumstances of possible and/or ongoing liquidation, capital availability, business operations and payment patterns.

We attempt to proactively manage these factors by using various procedures that are customized to the risk of a given loan. These procedures include a review by our Special Asset Committee (SAC), ongoing outreach, contact, and assessment of obligor financial conditions, collateral inspection and appraisal.

See Note 4 Purchased Loans for additional information.

Table 62: Commercial Lending Asset Quality Indicators (a)(b)
					Criticized Commercial Loans
				Pass	Special									Total
In millions				Rated	Mention (c)		Substandard (d)			Doubtful (e)				Loans
December 31, 2014
	Commercial		$	92,884	$	1,984		$	2,424		$	55	$	97,347
	Commercial real estate			22,066		285			639			35		23,025
	Equipment lease financing			7,518		73			93			2		7,686
	Purchased impaired loans					4			280			26		310
		Total commercial lending	$	122,468	$	2,346		$	3,436		$	118	$	128,368
December 31, 2013
	Commercial		$	83,903	$	1,894		$	2,352		$	72	$	88,221
	Commercial real estate			19,175		301			1,113			86		20,675
	Equipment lease financing			7,403		77			93			3		7,576
	Purchased impaired loans			10		31			469			163		673
		Total commercial lending	$	110,491	$	2,303		$	4,027		$	324	$	117,145
(a)	Based upon PDs and LGDs. We apply a split rating classification to certain loans meeting threshold criteria. By assigning a split classification, a loan's exposure amount may be split into more than one classification category in the above table.
(b)	Loans are included above based on the Regulatory Classification definitions of "Pass", "Special Mention", "Substandard" and "Doubtful".
(c)	Special Mention rated loans have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration
	of repayment prospects at some future date. These loans do not expose us to sufficient risk to warrant a more adverse classification at this time.
(d)	Substandard rated loans have a well-defined weakness or weaknesses that jeopardize the collection or liquidation of debt. They are characterized by the distinct possibility
	that we will sustain some loss if the deficiencies are not corrected.
(e)	Doubtful rated loans possess all the inherent weaknesses of a Substandard loan with the additional characteristics that the weakness makes collection or liquidation in full
	improbable due to existing facts, conditions, and values.

Consumer Lending Asset Classes

Home Equity and Residential Real Estate Loan Classes

We use several credit quality indicators, including delinquency information, nonperforming loan information, updated credit scores, originated and updated LTV ratios, and geography, to monitor and manage credit risk within the home equity and residential real estate loan classes. We evaluate mortgage loan performance by source originators and loan servicers. A summary of asset quality indicators follows:

Delinquency/Delinquency Rates: We monitor trending of delinquency/delinquency rates for home equity and residential real estate loans. See the Asset Quality section of this Note 3 for additional information.

Nonperforming Loans: We monitor trending of nonperforming loans for home equity and residential real estate loans. See the Asset Quality section of this Note 3 for additional information.

Credit Scores: We use a national third-party provider to update FICO credit scores for home equity loans and lines of credit and residential real estate loans at least quarterly. The updated scores are incorporated into a series of credit management reports, which are utilized to monitor the risk in the loan classes.

LTV (inclusive of combined loan-to-value (CLTV) for first and subordinate lien positions): At least annually, we update the property values of real estate collateral and calculate an updated LTV ratio. For open-end credit lines secured by real estate in regions experiencing significant declines in property values, more frequent valuations may occur. We examine LTV migration and stratify LTV into categories to monitor the risk in the loan classes.

Historically, we used, and we continue to use, a combination of original LTV and updated LTV for internal risk management and reporting purposes (e.g., line management, loss mitigation strategies). In addition to the fact that estimated property values by their nature are estimates, given certain data limitations it is important to note that updated LTVs may be based upon management’s assumptions (e.g., if an updated LTV is not provided by the third-party service provider, home price index (HPI) changes will be incorporated in arriving at management’s estimate of updated LTV).

Geography: Geographic concentrations are monitored to evaluate and manage exposures. Loan purchase programs are sensitive to, and focused within, certain regions to manage geographic exposures and associated risks.

A combination of updated FICO scores, originated and updated LTV ratios and geographic location assigned to home equity loans and lines of credit and residential real estate loans is used to monitor the risk in the loan classes. Loans with higher FICO scores and lower LTVs tend to have a lower level of risk. Conversely, loans with lower FICO scores, higher LTVs, and in certain geographic locations tend to have a higher level of risk.

Consumer Purchased Impaired Loan Class

Estimates of the expected cash flows primarily determine the valuation of consumer purchased impaired loans. Consumer cash flow estimates are influenced by a number of credit related items, which include, but are not limited to: estimated real estate values, payment patterns, updated FICO scores, the current economic environment, updated LTV ratios and the date of origination. These key factors are monitored to help ensure that concentrations of risk are managed and cash flows are maximized.

See Note 4 Purchased Loans for additional information.

Table 63: Home Equity and Residential Real Estate Balances

			December 31			December 31
In millions				2014		2013
	Home equity and residential real estate loans - excluding purchased impaired loans (a)		$	43,348	$	44,376
	Home equity and residential real estate loans - purchased impaired loans (b)			4,541		5,548
	Government insured or guaranteed residential real estate mortgages (a)			1,188		1,704
	Purchase accounting adjustments - purchased impaired loans			7		(116)
		Total home equity and residential real estate loans (a)	$	49,084	$	51,512
(a)	Represents recorded investment.
(b)	Represents outstanding balance.

Table 64: Home Equity and Residential Real Estate Asset Quality Indicators – Excluding Purchased Impaired Loans (a) (b)

			Home Equity				Residential Real Estate
December 31, 2014 - in millions			1st Liens		2nd Liens				Total
Current estimated LTV ratios (c)
	Greater than or equal to 125% and updated FICO scores:
		Greater than 660	$	333	$	1,399	$	360	$	2,092
		Less than or equal to 660 (d) (e)		57		273		92		422
		Missing FICO		1		9		8		18

	Greater than or equal to 100% to less than 125% and updated FICO scores:
		Greater than 660		839		2,190		772		3,801
		Less than or equal to 660 (d) (e)		118		383		153		654
		Missing FICO		1		5		12		18

	Greater than or equal to 90% to less than 100% and updated FICO scores:
		Greater than 660		891		1,703		755		3,349
		Less than or equal to 660		103		271		118		492
		Missing FICO		2		3		5		10

	Less than 90% and updated FICO scores:
		Greater than 660		13,878		7,874		7,703		29,455
		Less than or equal to 660		1,319		995		573		2,887
		Missing FICO		27		14		109		150

Total home equity and residential real estate loans			$	17,569	$	15,119	$	10,660	$	43,348

			Home Equity				Residential Real Estate
December 31, 2013 - in millions			1st Liens		2nd Liens				Total
Current estimated LTV ratios (c)
	Greater than or equal to 125% and updated FICO scores:
		Greater than 660	$	438	$	1,914	$	563	$	2,915
		Less than or equal to 660 (d) (e)		74		399		185		658
		Missing FICO		1		11		20		32

	Greater than or equal to 100% to less than 125% and updated FICO scores:
		Greater than 660		987		2,794		1,005		4,786
		Less than or equal to 660 (d) (e)		150		501		210		861
		Missing FICO		2		5		32		39

	Greater than or equal to 90% to less than 100% and updated FICO scores:
		Greater than 660		1,047		1,916		844		3,807
		Less than or equal to 660		134		298		131		563
		Missing FICO		2		3		22		27

	Less than 90% and updated FICO scores:
		Greater than 660		13,445		7,615		6,309		27,369
		Less than or equal to 660		1,349		1,009		662		3,020
		Missing FICO		25		17		256		298

	Missing LTV and updated FICO scores:
		Greater than 660						1		1
Total home equity and residential real estate loans			$	17,654	$	16,482	$	10,240	$	44,376
(a)	Excludes purchased impaired loans of approximately $4.5 billion and $5.4 billion in recorded investment, certain government insured or guaranteed residential real estate mortgages of approximately $1.2 billion and $1.7 billion, and loans held for sale at December 31, 2014 and December 31, 2013, respectively. See the Home Equity and Residential Real Estate Asset Quality Indicators - Purchased Impaired Loans table below for additional information on purchased impaired loans.
(b)	Amounts shown represent recorded investment.
(c)	Based upon updated LTV (inclusive of combined loan-to-value (CLTV) for first and subordinate lien positions). Updated LTV is estimated using modeled property values. These ratios are updated at least semi-annually. The related estimates and inputs are based upon an approach that uses a combination of third-party automated valuation models (AVMs), broker price opinions (BPOs), HPI indices, property location, internal and external balance information, origination data and management assumptions. In cases where we are in an originated second lien position, we generally utilize origination balances provided by a third-party which do not include an amortization assumption when calculating updated LTV. Accordingly, the results of these calculations do not represent actual appraised loan level collateral or updated LTV based upon a current first lien balance, and as such, are necessarily imprecise and subject to change as we enhance our methodology.
(d)	Higher risk loans are defined as loans with both an updated FICO score of less than or equal to 660 and an updated LTV greater than or equal to 100%.
(e)	The following states had the highest percentage of higher risk loans at December 31, 2014: New Jersey 14%, Pennsylvania 12%, Illinois 12%, Ohio 12%, Florida 8%, Maryland 6%, Michigan 5% and North Carolina 4%. The remainder of the states had lower than 4% of the higher risk loans individually, and collectively they represent approximately 28% of the higher risk loans. The following states had the highest percentage of higher risk loans at December 31, 2013: New Jersey 13%, Illinois 12%, Pennsylvania 12%, Ohio 11%, Florida 9%, Maryland 5%, Michigan 5%, and California 4%. The remainder of the states had lower than 4% of the high risk loans individually, and collectively they represent approximately 29% of the higher risk loans.

Table 65: Home Equity and Residential Real Estate Asset Quality Indicators – Purchased Impaired Loans (a)

			Home Equity (b) (c)				Residential Real Estate (b) (c)
December 31, 2014 - in millions			1st Liens		2nd Liens				Total
Current estimated LTV ratios (d)
	Greater than or equal to 125% and updated FICO scores:
		Greater than 660	$	8	$	243	$	276	$	527
		Less than or equal to 660		9		125		144		278
		Missing FICO				8		6		14

	Greater than or equal to 100% to less than 125% and updated FICO scores:
		Greater than 660		15		426		272		713
		Less than or equal to 660		12		194		200		406
		Missing FICO				11		5		16

	Greater than or equal to 90% to less than 100% and updated FICO scores:
		Greater than 660		12		207		186		405
		Less than or equal to 660		9		93		123		225
		Missing FICO				5		3		8

	Less than 90% and updated FICO scores:
		Greater than 660		102		339		626		1,067
		Less than or equal to 660		109		200		515		824
		Missing FICO		1		12		15		28

	Missing LTV and updated FICO scores:
		Greater than 660		1				14		15
		Less than or equal to 660		4				10		14
		Missing FICO						1		1
Total home equity and residential real estate loans			$	282	$	1,863	$	2,396	$	4,541

			Home Equity (b) (c )				Residential Real Estate (b) (c)
December 31, 2013 - in millions			1st Liens		2nd Liens				Total
Current estimated LTV ratios (d)
	Greater than or equal to 125% and updated FICO scores:
		Greater than 660	$	13	$	435	$	361	$	809
		Less than or equal to 660		15		215		296		526
		Missing FICO				12		24		36

	Greater than or equal to 100% to less than 125% and updated FICO scores:
		Greater than 660		21		516		373		910
		Less than or equal to 660		15		239		281		535
		Missing FICO				14		14		28

	Greater than or equal to 90% to less than 100% and updated FICO scores:
		Greater than 660		15		202		197		414
		Less than or equal to 660		12		101		163		276
		Missing FICO				7		6		13

	Less than 90% and updated FICO scores:
		Greater than 660		93		261		646		1,000
		Less than or equal to 660		126		198		590		914
		Missing FICO		1		11		47		59

	Missing LTV and updated FICO scores:
		Greater than 660		1				11		12
		Less than or equal to 660						13		13
		Missing FICO						3		3
Total home equity and residential real estate loans			$	312	$	2,211	$	3,025	$	5,548
(a)	Amounts shown represent outstanding balance. See Note 4 Purchased Loans for additional information.
(b)	For the estimate of cash flows utilized in our purchased impaired loan accounting, other assumptions and estimates are made, including amortization of first lien balances, pre-payment rates, etc., which are not reflected in this table.
(c)	The following states had the highest percentage of purchased impaired loans at December 31, 2014: California 17%, Florida 15%, Illinois 11%, Ohio 8%, North Carolina 7%, and Michigan 5%. The remainder of the states had lower than a 4% concentration of purchased impaired loans individually, and collectively they represent approximately 37% of the purchased impaired portfolio. The following states had the highest percentage of purchased impaired loans at December 31, 2013: California 17%, Florida 16%, Illinois 11%, Ohio 8%, North Carolina 8% and Michigan 5%. The remainder of the states had lower than a 4% concentration of purchased impaired loans individually, and collectively they represent approximately 35% of the purchased impaired portfolio.
(d)	Based upon updated LTV (inclusive of combined loan-to-value (CLTV) for first and subordinate lien positions). Updated LTV is estimated using modeled property values. These ratios are updated at least semi-annually. The related estimates and inputs are based upon an approach that uses a combination of third-party automated valuation models (AVMs), broker price opinions (BPOs), HPI indices, property location, internal and external balance information, origination data and management assumptions. In cases where we are in an originated second lien position, we generally utilize origination balances provided by a third-party which do not include an amortization assumption when calculating updated LTV. Accordingly, the results of these calculations do not represent actual appraised loan level collateral or updated LTV based upon a current first lien balance, and as such, are necessarily imprecise and subject to change as we enhance our methodology.

Credit Card and Other Consumer Loan Classes

We monitor a variety of asset quality information in the management of the credit card and other consumer loan classes. Other consumer loan classes include education, automobile, and other secured and unsecured lines and loans. Along with the trending of delinquencies and losses for each class, FICO credit score updates are generally obtained monthly, as well as a variety of credit bureau attributes. Loans with high FICO scores tend to have a lower likelihood of loss. Conversely, loans with low FICO scores tend to have a higher likelihood of loss.

Table 66: Credit Card and Other Consumer Loan Classes Asset Quality Indicators

		Credit Card (a)				Other Consumer (b)
				% of Total Loans				% of Total Loans
				Using FICO				Using FICO
Dollars in millions			Amount	Credit Metric			Amount	Credit Metric
December 31, 2014
	FICO score greater than 719	$	2,717	59	%	$	9,156	64	%
	650 to 719		1,288	28			3,459	24
	620 to 649		203	4			528	4
	Less than 620		239	5			619	4
	No FICO score available or required (c)		165	4			557	4
Total loans using FICO credit metric			4,612	100	%		14,319	100	%
	Consumer loans using other internal credit metrics (b)						8,434
Total loan balance		$	4,612			$	22,753
Weighted-average updated FICO score (d)				732				744
December 31, 2013 (e)
	FICO score greater than 719	$	2,546	58	%	$	8,596	63	%
	650 to 719		1,253	28			3,511	26
	620 to 649		203	4			527	4
	Less than 620		258	6			628	4
	No FICO score available or required (c)		165	4			474	3
Total loans using FICO credit metric			4,425	100	%		13,736	100	%
	Consumer loans using other internal credit metrics (b)						8,795
Total loan balance		$	4,425			$	22,531
Weighted-average updated FICO score (d)				730				741
(a)	At December 31, 2014, we had $35 million of credit card loans that are higher risk (i.e., loans with both updated FICO scores less than 660 and in late stage (90+ days)
	delinquency status). The majority of the December 31, 2014 balance related to higher risk credit card loans is geographically distributed throughout the following areas:
	Ohio 17%, Pennsylvania 16%, Michigan 9%, New Jersey 7%, Illinois 7%, Indiana 6%, Florida 6% and North Carolina 4%. All other states had less than 4% individually and
	make up the remainder of the balance. At December 31, 2013, we had $35 million of credit card loans that are higher risk. The majority of the December 31,
	2013 balance related to higher risk credit card loans is geographically distributed throughout the following areas: Ohio 18%, Pennsylvania 17%, Michigan 11%, Illinois 7%,
	New Jersey 7%, Indiana 6%, Florida 6% and Kentucky 4%. All other states had less than 4% individually and make up the remainder of the balance.
(b)	Other consumer loans for which updated FICO scores are used as an asset quality indicator include non-government guaranteed or insured education loans, automobile
	loans and other secured and unsecured lines and loans. Other consumer loans for which other internal credit metrics are used as an asset quality indicator include primarily
	government guaranteed or insured education loans, as well as consumer loans to high net worth individuals. Other internal credit metrics may include delinquency status,
	geography or other factors.
(c)	Credit card loans and other consumer loans with no FICO score available or required generally refers to new accounts issued to borrowers with limited credit history, accounts for which we cannot obtain an updated FICO score (e.g., recent profile changes), cards issued with a business name, and/or cards secured by collateral. Management proactively assesses the risk and size of this loan portfolio and, when necessary, takes actions to mitigate the credit risk.
(d)	Weighted-average updated FICO score excludes accounts with no FICO score available or required.
(e)	In the second quarter of 2014, we corrected our credit card FICO score determination process by further refining the data. This impacted FICO scores greater than 719, 650 to 719, 620 to 649, less than 620 and no FICO score available. This resulted in an adjustment to amounts previously reported in 2013 of $242 million from "No FICO score available or required" to the other line items. The majority of the adjustment to amounts previously reported in 2013 went to the "FICO score greater than 719" category.

Troubled Debt Restructurings (TDRs)

A TDR is a loan whose terms have been restructured in a manner that grants a concession to a borrower experiencing financial difficulty. TDRs result from our loss mitigation activities, and include rate reductions, principal forgiveness, postponement/reduction of scheduled amortization, and extensions, which are intended to minimize economic loss and to avoid foreclosure or repossession of collateral. Additionally, TDRs also result from borrowers that have been discharged from personal liability through Chapter 7 bankruptcy and have not formally reaffirmed their loan obligations to PNC. In those situations where principal is forgiven, the amount of such principal forgiveness is immediately charged off.

Some TDRs may not ultimately result in the full collection of principal and interest, as restructured, and result in potential incremental losses. These potential incremental losses have been factored into our overall ALLL estimate. The level of any subsequent defaults will likely be affected by future economic conditions. Once a loan becomes a TDR, it will continue to be reported as a TDR until it is ultimately repaid in full, the collateral is foreclosed upon, or it is fully charged off. We held specific reserves in the ALLL of $.4 billion and $.5 billion at December 31, 2014 and December 31, 2013, respectively, for the total TDR portfolio.

Table 67: Summary of Troubled Debt Restructurings

			December 31		December 31
In millions			2014		2013
Total consumer lending		$	2,041	$	2,161
Total commercial lending			542		578
	Total TDRs	$	2,583	$	2,739
Nonperforming		$	1,370	$	1,511
Accruing (a)			1,083		1,062
Credit card			130		166
	Total TDRs	$	2,583	$	2,739
(a)	Accruing TDR loans have demonstrated a period of at least six months of performance under the restructured terms and are excluded from nonperforming loans. Loans where borrowers have been discharged from personal liability through Chapter 7 bankruptcy and have not formally reaffirmed their loan obligations to PNC and loans to borrowers not currently obligated to make both principal and interest payments under the restructured terms are not returned to accrual status.

Table 68 quantifies the number of loans that were classified as TDRs as well as the change in the recorded investments as a result of the TDR classification during 2014, 2013, and 2012, respectively. Additionally, the table provides information about the types of TDR concessions. The Principal Forgiveness TDR category includes principal forgiveness and accrued interest forgiveness. These types of TDRs result in a write down of the recorded investment and a charge-off if such action has not already taken place. The Rate Reduction TDR category includes reduced interest rate and interest deferral. The TDRs within this category result in reductions to future interest income. The Other TDR category primarily includes consumer borrowers that have been discharged from personal liability through Chapter 7 bankruptcy and have not formally reaffirmed their loan obligations to PNC, as well as postponement/reduction of scheduled amortization and contractual extensions for both consumer and commercial borrowers.

In some cases, there have been multiple concessions granted on one loan. This is most common within the commercial loan portfolio. When there have been multiple concessions granted in the commercial loan portfolio, the principal forgiveness concession was prioritized for purposes of determining the inclusion in Table 68. For example, if there is principal forgiveness in conjunction with lower interest rate and postponement of amortization, the type of concession will be reported as Principal Forgiveness. Second in priority would be rate reduction. For example, if there is an interest rate reduction in conjunction with postponement of amortization, the type of concession will be reported as a Rate Reduction. In the event that multiple concessions are granted on a consumer loan, concessions resulting from discharge from personal liability through Chapter 7 bankruptcy without formal affirmation of the loan obligations to PNC would be prioritized and included in the Other type of concession in the table below. After that, consumer loan concessions would follow the previously discussed priority of concessions for the commercial loan portfolio.

Table 68: Financial Impact and TDRs by Concession Type (a)

				Pre-TDR		Post-TDR Recorded Investment (c)
During the year ended December 31, 2014		Number		Recorded			Principal		Rate
Dollars in millions		of Loans		Investment (b)			Forgiveness		Reduction		Other		Total
Commercial lending
	Commercial		131	$	192		$	10	$	11	$	137	$	158
	Commercial real estate		79		171			27		11		100		138
Total commercial lending (d)			210		363			37		22		237		296
Consumer lending
	Home equity		2,950		193					51		132		183
	Residential real estate		527		73					26		45		71
	Credit card		7,720		60					57				57
	Other consumer		1,092		18					1		13		14
Total consumer lending			12,289		344					135		190		325
	Total TDRs		12,499	$	707		$	37	$	157	$	427	$	621
During the year ended December 31, 2013
Dollars in millions
Commercial lending
	Commercial		168	$	216		$	10	$	21	$	132	$	163
	Commercial real estate		116		284			28		51		144		223
	Equipment lease financing		1		3
Total commercial lending			285		503			38		72		276		386
Consumer lending
	Home equity		4,132		289					139		126		265
	Residential real estate		911		127					39		86		125
	Credit card		8,397		64					61				61
	Other consumer		1,379		22					1		19		20
Total consumer lending			14,819		502					240		231		471
	Total TDRs		15,104	$	1,005		$	38	$	312	$	507	$	857
During the year ended December 31, 2012
Dollars in millions
Commercial lending
	Commercial (e)		220	$	335		$	19	$	58	$	206	$	283
	Commercial real estate (e)		68		244			19		77		121		217
	Equipment lease financing (e)		1		1							1		1
Total commercial lending			289		580			38		135		328		501
Consumer lending
	Home equity		4,813		313					200		110		310
	Residential real estate		754		147					60		83		143
	Credit card		13,306		93					90				90
	Other consumer		835		20					2		19		21
Total consumer lending			19,708		573					352		212		564
	Total TDRs		19,997	$	1,153		$	38	$	487	$	540	$	1,065
(a)	Impact of partial charge-offs at TDR date are included in this table.
(b)	Represents the recorded investment of the loans as of the quarter end prior to TDR designation, and excludes immaterial amounts of accrued interest receivable.
(c)	Represents the recorded investment of the TDRs as of the end of the quarter in which the TDR occurs, and excludes immaterial amounts of accrued interest receivable.
(d)	During the twelve months ended December 31, 2014, there were no loans classified as TDRs in the Equipment lease financing loan class.
(e)	Certain amounts within the Commercial lending portfolio for 2012 were reclassified to conform to the presentation in 2013.

TDRs may result in charge-offs and interest income not being recognized. The amount of principal balance charged off at or around the time of modification for the twelve months ended December 31, 2014 was not material. A financial effect of rate reduction TDRs is that interest income is not recognized for the difference between the original contractual interest rate terms and the restructured terms. Interest income not recognized that otherwise would have been earned in the twelve months ended December 31, 2014 and 2013, related to all commercial TDRs and consumer TDRs, was not material.

After a loan is determined to be a TDR, we continue to track its performance under its most recent restructured terms. In Table 69, we consider a TDR to have subsequently defaulted when it becomes 60 days past due after the most recent date the loan was restructured. The following table presents the recorded investment of loans that both (i) were classified as TDRs or were subsequently modified during each 12-month period preceding January 1, 2014, 2013, and 2012, respectively, and (ii) subsequently defaulted during 2014, 2013, and 2012, respectively.

Table 69: TDRs that were Modified in the Past Twelve Months which have Subsequently Defaulted

During the year ended December 31, 2014
Dollars in millions		Number of Contracts		Recorded Investment
Commercial lending
	Commercial		38	$	26
	Commercial real estate		43		80
Total commercial lending (a)			81		106
Consumer lending
	Home equity		400		21
	Residential real estate		155		24
	Credit card		3,397		27
	Other consumer		132		1
Total consumer lending			4,084		73
	Total TDRs		4,165	$	179
During the year ended December 31, 2013
Dollars in millions		Number of Contracts		Recorded Investment
Commercial lending
	Commercial		67	$	47
	Commercial real estate		38		59
Total commercial lending (a)			105		106
Consumer lending (b)
	Home equity		592		39
	Residential real estate		255		35
	Credit card		4,598		34
	Other consumer		249		4
Total consumer lending			5,694		112
	Total TDRs		5,799	$	218
During the year ended December 31, 2012
Dollars in millions		Number of Contracts		Recorded Investment
Commercial lending
	Commercial (c)		112	$	67
	Commercial real estate (c)		42		69
	Equipment lease financing		1		1
Total commercial lending			155		137
Consumer lending
	Home equity		542		50
	Residential real estate		482		70
	Credit card		4,551		32
	Other consumer		118		4
Total consumer lending			5,693		156
	Total TDRs		5,848	$	293
(a)	During 2014 and 2013, there were no loans classified as TDRs in the Equipment lease financing loan class that have subsequently defaulted.
(b)	In the second quarter of 2014, we corrected our Consumer lending subsequent default (excluding credit card) determination process by further refining the data. For the twelve months ended December 31, 2013, this correction removed 1,426 contracts for approximately $130 million from Total consumer lending (excluding credit card).
(c)	Certain amounts within the 2012 Commercial lending portfolio were reclassified during the fourth quarter of 2013.

The impact to the ALLL for commercial lending TDRs is the effect of moving to the specific reserve methodology from the quantitative reserve methodology, described below, for those loans that were not already classified as nonaccrual. There is an impact to the ALLL as a result of the concession made, which generally results in a reduction of expected future cash flows. The decline in expected future cash flows, consideration of collateral value, and/or the application of a present value discount rate, when compared to the recorded investment, results in either an increased ALLL or a charge-off. As TDRs are individually evaluated under the specific reserve methodology, which builds in expectations of future performance, generally subsequent defaults do not significantly impact the ALLL.

For consumer lending TDRs, except TDRs resulting from borrowers that have been discharged from personal liability through Chapter 7 bankruptcy and have not formally reaffirmed their loan obligations to PNC as discussed in Note 1 Accounting Policies under the Allowance for Loans and Lease Losses section, the ALLL is calculated using a discounted cash flow model, which leverages subsequent default, prepayment, and severity rate assumptions based upon historically observed data. Similar to the commercial lending specific reserve methodology, the reduced expected cash flows resulting from the concessions granted impact the consumer lending ALLL. The decline in expected cash flows due to the application of a present value discount rate or the consideration of collateral value, when compared to the recorded investment, results in either an increased ALLL or a charge-off. Loans where a borrower has been discharged from personal liability in bankruptcy and has not formally reaffirmed its loan obligation to PNC are charged off to collateral value less costs to sell, and any associated allowance at the time of charge-off is reduced to zero.

Impaired Loans

Impaired loans include commercial nonperforming loans and consumer and commercial TDRs, regardless of nonperforming status. TDRs that were previously recorded at amortized cost and are now classified and accounted for as held for sale are also included. Excluded from impaired loans are nonperforming leases, loans accounted for as held for sale other than the TDRs described in the preceding sentence, loans accounted for under the fair value option, smaller balance homogeneous type loans and purchased impaired loans. See Note 4 Purchased Loans for additional information. Nonperforming equipment lease financing loans of $2 million and $5 million at December 31, 2014 and December 31, 2013, respectively, are excluded from impaired loans pursuant to authoritative lease accounting guidance. We did not recognize any interest income on impaired loans that have not returned to performing status, while they were impaired during the years ended December 31, 2014 and December 31, 2013. The following table provides further detail on impaired loans individually evaluated for impairment and the associated ALLL. Certain commercial impaired loans and loans to consumers discharged from bankruptcy and not formally reaffirmed do not have a related ALLL as the valuation of these impaired loans exceeded the recorded investment.

Table 70: Impaired Loans

			Unpaid							Average
			Principal		Recorded		Associated			Recorded
In millions			Balance		Investment (a)		Allowance (b)			Investment (c)
December 31, 2014
	Impaired loans with an associated allowance
		Commercial	$	432	$	318		$	74	$	360
		Commercial real estate		418		262			65		283
		Home equity		1,021		984			215		986
		Residential real estate		397		420			75		422
		Credit card		130		130			32		147
		Other consumer		64		47			2		51
	Total impaired loans with an associated allowance		$	2,462	$	2,161		$	463	$	2,249
	Impaired loans without an associated allowance
		Commercial	$	106	$	84		$		$	133
		Commercial real estate		249		187					276
		Home equity		403		145					134
		Residential real estate		344		315					365
	Total impaired loans without an associated allowance		$	1,102	$	731		$		$	908
	Total impaired loans		$	3,564	$	2,892		$	463	$	3,157
December 31, 2013
	Impaired loans with an associated allowance
		Commercial	$	549	$	400		$	90	$	442
		Commercial real estate		517		349			89		478
		Home equity		999		992			334		900
		Residential real estate		573		436			74		645
		Credit card		166		166			36		189
		Other consumer		71		57			2		68
	Total impaired loans with an associated allowance		$	2,875	$	2,400		$	625	$	2,722
	Impaired loans without an associated allowance
		Commercial	$	309	$	163		$		$	161
		Commercial real estate		421		315					354
		Home equity		366		124					166
		Residential real estate		415		386					267
	Total impaired loans without an associated allowance		$	1,511	$	988		$		$	948
	Total impaired loans		$	4,386	$	3,388		$	625	$	3,670
(a)	Recorded investment in a loan includes the unpaid principal balance plus accrued interest and net accounting adjustments, less any charge-offs. Recorded investment does not include any associated valuation allowance.
(b)	Associated allowance amounts include $.4 billion and $.5 billion for TDRs at December 31, 2014 and December 31, 2013, respectively.
(c)	Average recorded investment is for the years ended December 31, 2014 and December 31, 2013, respectively.