Fair Value (Tables)

12 Months Ended

Dec. 31, 2014

Fair Value Measurements - Recurring Basis Summary

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

Table 83: Fair Value Measurements - Recurring Basis Summary

					December 31, 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		$	4,795	$	627			$	5,422	$	3,460	$	658			$	4,118
		Residential mortgage-backed
			Agency (a)				18,043				18,043				21,714				21,714
			Non-agency				144	$	4,798		4,942				247	$	5,358		5,605
		Commercial mortgage-backed
			Agency (a)				2,187				2,187				1,763				1,763
			Non-agency				4,162				4,162				4,042				4,042
		Asset-backed					4,624		563		5,187				5,131		641		5,772
		State and municipal					1,904		134		2,038				2,284		333		2,617
		Other debt					1,783		30		1,813				2,505		38		2,543
			Total debt securities		4,795		33,474		5,525		43,794		3,460		38,344		6,370		48,174
		Corporate stocks and other			426		15				441		417		16				433
			Total securities available for sale		5,221		33,489		5,525		44,235		3,877		38,360		6,370		48,607
	Financial derivatives (b) (c)
		Interest rate contracts			4		4,874		40		4,918		25		4,540		34		4,599
		Other contracts					314		2		316				192		2		194
			Total financial derivatives		4		5,188		42		5,234		25		4,732		36		4,793
	Residential mortgage loans held for sale (d)						1,255		6		1,261				1,307		8		1,315
	Trading securities (e)
		Debt (f)			1,340		960		32		2,332		2,159		862		32		3,053
		Equity			21						21		20						20
			Total trading securities		1,361		960		32		2,353		2,179		862		32		3,073
	Trading loans (b)						30		7		37				6				6
	Residential mortgage servicing rights (g)								845		845						1,087		1,087
	Commercial mortgage servicing rights (g) (h)								506		506
	Commercial mortgage loans held for sale (d)								893		893						586		586
	Equity investments (b) (i)
		Direct investments							1,152		1,152						1,069		1,069
		Indirect investments (j)							469		469						595		595
			Total equity investments						1,621		1,621						1,664		1,664
	Customer resale agreements (k)						155				155				207				207
	Loans (l) (m)						637		397		1,034				623		527		1,150
	Other assets (b)
		BlackRock Series C Preferred Stock (n)							375		375						332		332
		Other			190		226		8		424		209		184		8		401
			Total other assets		190		226		383		799		209		184		340		733
		Total assets		$	6,776	$	41,940	$	10,257	$	58,973	$	6,290	$	46,281	$	10,650	$	63,221
Liabilities
	Financial derivatives (c) (o)
		Interest rate contracts				$	3,260	$	12	$	3,272	$	6	$	3,307	$	13	$	3,326
		BlackRock LTIP							375		375						332		332
		Other contracts					241		139		380				182		94		276
			Total financial derivatives				3,501		526		4,027		6		3,489		439		3,934
	Trading securities sold short (p)
		Debt		$	1,479		11				1,490		1,341		1				1,342
			Total trading securities sold short		1,479		11				1,490		1,341		1				1,342
	Other borrowed funds (m) (p)						92		181		273				110		199		309
	Other liabilities (o)								9		9
		Total liabilities		$	1,479	$	3,604	$	716	$	5,799	$	1,347	$	3,600	$	638	$	5,585
(a)		In our third quarter 2014 10-Q, these line items were corrected as of December 31, 2013 due to a misclassification of Government National Mortgage Association (GNMA) securities collateralized by project loans. $1.1 billion was previously reported as residential mortgage-backed agency securities and was reclassified to commercial mortgage-backed agency securities.
(b)		Included in Other assets on our Consolidated Balance Sheet.
(c)		Amounts at December 31, 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 $2.6 billion at December 31, 2014 and $1.7 billion at December 31, 2013, and the net liability amounts were $1.4 billion and $.9 billion, respectively.
(d)		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.
(e)		Fair value includes net unrealized gains of $54 million at December 31, 2014 compared with net unrealized gains of $11 million at December 31, 2013.
(f)		Approximately 34% of these securities are residential mortgage-backed securities and 57% are U.S. Treasury and government agencies securities at December 31, 2014. Comparable amounts at December 31, 2013 were 17% and 69%, respectively.
(g)		Included in Other intangible assets on our Consolidated Balance Sheet.
(h)		As of January 1, 2014, PNC made an irrevocable election to subsequently 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.
(i)		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.
(j)		The indirect equity funds are not redeemable, but PNC receives distributions over the life of the partnership from liquidation of the underlying investments by the investee, which we expect to occur over the next twelve years. The amount of unfunded contractual commitments as of December 31, 2014 related to indirect equity investments was $112 million and related to direct equity investments was $28 million, respectively. Comparable amounts at December 31, 2013 were $128 million and $36 million, respectively.
(k)		Included in Federal funds sold and resale agreements on our Consolidated Balance Sheet. PNC has elected the fair value option for these items.
(l)		Included in Loans on our Consolidated Balance Sheet.
(m)		In our third quarter 2014 10-Q, these line items were corrected as of December 31, 2013 to include transferred loans over which PNC regained effective control and the related liabilities that are recorded pursuant to ASC 860. This resulted in a $125 million increase of both Loans and Other borrowed funds as of December 31, 2013.
(n)		PNC has elected the fair value option for these shares.
(o)		Included in Other liabilities on our Consolidated Balance Sheet.
(p)		Included in Other borrowed funds on our Consolidated Balance Sheet.

Reconciliation of Level 3 Assets and Liabilities

Reconciliations of assets and liabilities measured at fair value on a recurring basis using Level 3 inputs for 2014 and 2013 follow.

Table 84: Reconciliation of Level 3 Assets and Liabilities

Year Ended December 31, 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		Dec. 31,		at Dec. 31,
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		$	120		$	64							$	(821)	$	77			$	4,798	$	(10)
		Commercial mortgage								1											(1)
			backed non-agency
		Asset-backed					641			13			23								(114)						563		(1)
		State and municipal					333			(2)			15								(198)			$	(14)		134
		Other debt					38			1				$	1	$	(8)				(2)						30
			Total securities
				available for sale			6,370			133			102		1		(8)				(1,136)		77		(14)		5,525		(11)
	Financial derivatives						36			226					3						(223)						42		142
	Residential mortgage
		loans held for sale					8			1					15		(3)				(1)		11		(25)		6		1
	Trading securities - Debt						32			2											(31)		29				32		2
	Trading loans																						7				7
	Residential mortgage
		servicing rights					1,087			(238)					45			$	85		(134)						845		(231)
	Commercial mortgage
		servicing rights								(53)					43				53		463	(g)					506		(53)
	Commercial mortgage
		loans held for sale					586			38									1,790		(1,521)						893		6
	Equity investments
		Direct investments					1,069			184					306		(407)										1,152		134
		Indirect investments					595			78					23		(223)				(4)						469		74
			Total equity
				investments			1,664			262					329		(630)				(4)						1,621		208
	Loans						527			74					120		(153)				(86)		20		(105)		397		46
	Other assets
		BlackRock Series C
			Preferred Stock				332			43																	375		43
		Other					8																				8
			Total other assets				340			43																	383		43
				Total assets		$	10,650		$	488	(e)	$	102	$	556	$	(794)	$	1,928	$	(2,673)	$	144	$	(144)	$	10,257	$	153	(f)
Liabilities
	Financial derivatives (d)					$	439		$	222						$	1			$	(136)					$	526	$	(51)
	Other borrowed funds						199			5								$	57		(80)						181
	Other liabilities																				9						9
				Total liabilities		$	638		$	227	(e)					$	1	$	57	$	(207)					$	716	$	(51)	(f)


Year Ended December 31, 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		Dec. 31,		at Dec. 31,
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		$	189		$	147							$	(1,085)					$	5,358	$	(10)
		Commercial mortgage-
			backed non-agency						3											(3)
		Asset-backed				708			9			53								(129)						641		(6)
		State and municipal				339			1			2	$	4						(13)						333
		Other debt				48								3	$	(10)				(3)						38
			Total securities
				available for sale		7,202			202			202		7		(10)				(1,233)						6,370		(16)
	Financial derivatives					106			297					4						(369)			$	(2)		36		166
	Residential mortgage
		loans held for sale				27			2					61		(3)				4	$	13		(96)		8		2
	Trading securities - Debt					32																				32
	Residential mortgage
		servicing rights				650			366					110		(4)	$	158		(193)						1,087		354
	Commercial mortgage
		loans held for sale				772			(11)							(130)				(45)						586		(12)
	Equity investments
		Direct investments				1,171			141					177		(420)										1,069		62
		Indirect investments				642			81			(3)		26		(151)										595		76
			Total equity
				investments		1,813			222			(3)		203		(571)										1,664		138
	Loans (h)					134			46					1		(1)				83		292		(28)		527		34
	Other assets
		BlackRock Series C
			Preferred Stock			243			122											(33)						332		122
		Other				9						(1)														8
			Total other assets			252			122			(1)								(33)						340		122
				Total assets	$	10,988		$	1,246	(e)	$	198	$	386	$	(719)	$	158	$	(1,786)	$	305	$	(126)	$	10,650	$	788	(f)
Liabilities
	Financial derivatives (d)				$	376		$	317						$	2			$	(256)					$	439	$	181
	Other borrowed funds (h)								9											175	$	15				199
				Total liabilities	$	376		$	326	(e)					$	2			$	(81)	$	15			$	638	$	181	(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 $261 million for 2014 compared with net gains (realized and unrealized) of $920 million for 2013. These amounts also included amortization and accretion of $146 million for 2014 compared with $217 million for 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 $204 million for 2014, compared with net unrealized gains of $607 million for 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 8 Goodwill and Other Intangible Assets for additional information on commercial MSRs.
(h)			These line items were corrected for the year ended December 31, 2013 to include transferred loans over which PNC regained effective control and the related liabilities that are recorded pursuant to ASC 860. This resulted in additional transfers into Level 3 of $15 million for both Loans and Other borrowed funds.

Fair Value Measurements - Recurring Quantitative Information

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

Table 85: Fair Value Measurements - Recurring Quantitative Information

December 31, 2014

Level 3 Instruments Only

Dollars in millions

Fair Value

Valuation Techniques

Unobservable Inputs

Range (Weighted Average)

Residential mortgage-backed

non-agency securities

4,798

Priced by a third-party vendor

Constant prepayment rate (CPR)

1.0%-28.9% (6.8%)

(a)

using a discounted cash flow

Constant default rate (CDR)

0%-16.7% (5.6%)

(a)

pricing model (a)

Loss severity

6.1%-100.0% (53.1%)

(a)

Spread over the benchmark curve (b)

249bps weighted average

(a)

Asset-backed securities

563

Priced by a third-party vendor

Constant prepayment rate (CPR)

1.0%-15.7% (5.9%)

(a)

using a discounted cash flow

Constant default rate (CDR)

1.7%-13.9% (7.6%)

(a)

pricing model (a)

Loss severity

14.6%-100% (73.5%)

(a)

Spread over the benchmark curve (b)

352bps weighted average

(a)

State and municipal securities

132

Discounted cash flow

Spread over the benchmark curve (b)

55bps-165bps (67bps)

Consensus pricing (c)

Credit and Liquidity discount

0%-20.0% (14.9%)

Other debt securities

Consensus pricing (c)

Credit and Liquidity discount

7.0%-95.0% (88.6%)

Trading securities - Debt

Consensus pricing (c)

Credit and Liquidity discount

0.0%-15.0% (8.0%)

Residential mortgage servicing rights

845

Discounted cash flow

Constant prepayment rate (CPR)

3.8%-32.7% (11.2%)

Spread over the benchmark curve (b)

889bps-1,888bps (1,036bps)

Commercial mortgage servicing

506

Discounted cash flow

Constant prepayment rate (CPR)

7.0%-16.8% (8.0%)

rights

Discount rate

2.5%-8.6% (6.6%)

Commercial mortgage loans held

893

Discounted cash flow

Spread over the benchmark curve (b)

37bps-4,025bps (549bps)

for sale

Estimated servicing cash flows

0.0%-2.0% (1.2%)

Equity investments - Direct investments

1,152

Multiple of adjusted earnings

Multiple of earnings

3.2x-13.9x (7.7x)

Equity investments - Indirect (d)

469

Net asset value

Loans - Residential real estate

114

Consensus pricing (c)

Cumulative default rate

2.0%-100% (90.5%)

Loss severity

0%-100% (35.6%)

Discount rate

5.4%-7.0% (6.4%)

154

Discounted cash flow

Loss severity

8.0% weighted average

Discount rate

3.4% weighted average

Loans - Home equity

129

Consensus pricing (c)

Credit and Liquidity discount

26.0%-99.0% (51.0%)

BlackRock Series C Preferred Stock

375

Consensus pricing (c)

Liquidity discount

20.0%

BlackRock LTIP

(375)

Consensus pricing (c)

Liquidity discount

20.0%

Swaps related to sales of certain Visa

(135)

Discounted cash flow

Estimated conversion factor of

Class B common shares

Class B shares into Class A shares

41.1%

Estimated growth rate of Visa

Class A share price

14.8%

Other borrowed funds - non-agency

securitization

(166)

Consensus pricing (c)

Credit and Liquidity discount

0%-99.0% (18.0%)

Spread over the benchmark curve (b)

113bps

Insignificant Level 3 assets, net of

liabilities (e)

Total Level 3 assets, net of liabilities (f)

9,541

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

Consensus pricing (c)

Credit and Liquidity discount

7.0%-95.0% (88.4%)

Trading securities - Debt

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

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%)

179

Discounted cash flow

Loss severity

8.0% weighted average

Discount rate

10.0% weighted average

Loans - Home equity

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 - non-agency

securitization

(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 (e)

Total Level 3 assets, net of liabilities (f)

10,012

(a)

Level 3 residential mortgage-backed non-agency and asset-backed securities with fair values as of December 31, 2014 totaling $4,081 million and $532 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 this Note 7. Certain Level 3 residential mortgage-backed non-agency and asset-backed securities with fair values as of December 31, 2014 of $717 million and $31 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)

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, trading loans, other assets, other borrowed funds (ROAPs) and other liabilities. For additional information, please see the Fair Value Measurement discussion included in this Note 7.

(f)

Consisted of total Level 3 assets of $10,257 million and total Level 3 liabilities of $716 million as of December 31, 2014 and $10,650 million and $638 million as of December 31, 2013, respectively.

Fair Value Measurements - Nonrecurring

Table 86: Fair Value Measurements - Nonrecurring

						Fair Value
					December 31		December 31
In millions					2014		2013
Assets (a)
	Nonaccrual loans				$	54	$	35
	Loans held for sale (b)					8		224
	Equity investments					17		6
	Commercial mortgage servicing rights (c)							543
	OREO and foreclosed assets					168		181
	Long-lived assets held for sale					22		51
		Total assets			$	269	$	1,040

Year ended December 31				Gains (Losses)
In millions				2014		2013		2012
Assets
	Nonaccrual loans		$	(19)	$	(8)	$	(68)
	Loans held for sale (b)					(7)		(4)
	Equity investments			(2)		(1)
	Commercial mortgage servicing rights (c)					88		(5)
	OREO and foreclosed assets			(19)		(26)		(73)
	Long-lived assets held for sale			(14)		(40)		(20)
		Total assets	$	(54)	$	6	$	(170)
(a)		All Level 3 as of December 31, 2014 and 2013 except for $8 million included in Loans held for sale which was categorized as Level 2 as of December 31, 2014.
(b)		As of September 1, 2014, PNC elected to account for agency loans held for sale at fair value. Accordingly, beginning on September 1, 2014, all new commercial mortgage loans held for sale originated for sale to the agencies are measured at fair value on a recurring basis.
(c)		As of January 1, 2014, PNC made an irrevocable election to subsequently 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.

Fair Value Measurements - Nonrecurring Quantitative Information

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

Table 87: Fair Value Measurements - Nonrecurring Quantitative Information

Level 3 Instruments Only

Dollars in millions

Fair Value

Valuation Techniques

Unobservable Inputs

Range (Weighted Average)

December 31, 2014

Assets

Nonaccrual loans (a)

LGD percentage (b)

Loss severity

2.9%-68.5% (42.1%)

Equity investments

Discounted cash flow

Market rate of return

6.0%

Other (c)

215

Fair value of property or collateral

Appraised value/sales price

Not meaningful

Total Assets

261

December 31, 2013

Assets

Nonaccrual loans (a)

LGD percentage (b)

Loss severity

7.0%-84.9% (36.6%)

Loans held for sale (d)

224

Discounted cash flow

Spread over the benchmark curve (e)

35bps-220bps (144bps)

Estimated servicing cash flows

.8%-3.5% (2.0%)

Equity investments

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 (f)

Discount rate

5.4%-7.6% (6.7%)

Other (c)

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)

Other included Nonaccrual loans of $25 million, OREO and foreclosed assets of $168 million and Long-lived assets held for sale of $22 million as of December 31, 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.

(d)

As of September 1, 2014, PNC elected to account for agency loans held for sale at fair value. Accordingly, beginning on September 1, 2014, all new commercial mortgage loans held for sale originated for sale to the agencies are measured at fair value on a recurring basis.

(e)

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.

(f)

As of January 1, 2014, PNC made an irrevocable election to subsequently 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.

Fair Value Option - Changes in Fair Value

Table 88: Fair Value Option - Changes in Fair Value (a)


Year ended December 31			Gains (Losses)
In millions			2014		2013		2012
Assets
	Customer resale agreements		$	(3)	$	(7)	$	(10)
	Residential mortgage-backed agency securities with embedded derivatives (b)							13
	Trading loans			2		3		2
	Commercial mortgage loans held for sale			50		(10)		(5)
	Residential mortgage loans held for sale (c)			212		213		(223)
	Residential mortgage loans – portfolio (c)			157		60		7
	BlackRock Series C Preferred Stock			43		122		33
Liabilities
	Other borrowed funds			(5)		(9)
(a)		The impact on earnings of offsetting hedged items or hedging instruments is not reflected in these amounts.
(b)		At December 31, 2014, 2013 and 2012, the balance of residential mortgage-backed agency securities with embedded derivatives carried in Trading securities was zero.
(c)		Prior periods were corrected for the allocation between Residential mortgage loans held for sale and Residential mortgage loans - portfolio. This resulted in a decrease of $34 million from gains on Residential mortgage loans held for sale and an increase of $33 million to gains on Residential mortgage loans - portfolio for 2013. Comparable amounts for 2012 were a decrease of $43 million from gains on Residential mortgage loans held for sale and an increase of $43 million to gains on Residential mortgage loans - portfolio.

Fair Value Option - Fair Value and Principal Balances

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

Table 89: Fair Value Option - Fair Value and Principal Balances

							Aggregate Unpaid
In millions				Fair Value			Principal Balance		Difference
December 31, 2014
Assets
	Customer resale agreements				$	155	$	148	$	7
	Trading loans					37		37
	Residential mortgage loans held for sale
		Performing loans				1,236		1,176		60
		Accruing loans 90 days or more past due				9		9
		Nonaccrual loans				16		17		(1)
			Total			1,261		1,202		59
	Commercial mortgage loans held for sale (a)
		Performing loans				873		908		(35)
		Nonaccrual loans				20		64		(44)
			Total			893		972		(79)
	Residential mortgage loans - portfolio
		Performing loans				194		256		(62)
		Accruing loans 90 days or more past due (b)				570		573		(3)
		Nonaccrual loans				270		449		(179)
			Total			1,034		1,278		(244)
Liabilities
	Other borrowed funds				$	273	$	312	$	(39)
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 (c)
		Performing loans				233		332		(99)
		Accruing loans 90 days or more past due (b)				552		626		(74)
		Nonaccrual loans				365		598		(233)
		Total				1,150		1,556		(406)
Liabilities
	Other borrowed funds (c)				$	309	$	353	$	(44)
(a)	There were no accruing loans 90 days or more past due within this category at December 31, 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)	Prior period amounts were corrected in our third quarter 2014 10-Q to include transferred loans over which PNC regained effective control and the related liabilities that are recorded pursuant to ASC 860. This resulted in increases of $125 million in fair value and $128 million in aggregate unpaid principal balance for both Residential mortgage loans - portfolio and Other borrowed funds as of December 31, 2013.

Additional Fair Value Information Related to Financial Instruments

Table 90: Additional Fair Value Information Related to Other Financial Instruments

		Carrying		Fair Value
In millions		Amount			Total		Level 1		Level 2		Level 3
December 31, 2014
Assets
Cash and due from banks		$	4,360	$	4,360	$	4,360
Short-term assets			34,380		34,380			$	34,380
Securities held to maturity			11,588		11,984		292		11,683	$	9
Loans held for sale			108		108				56		52
Net loans (excludes leases)			192,573		194,564						194,564
Other assets			1,879		2,544				1,802		742	(a)
	Total Assets	$	244,888	$	247,940	$	4,652	$	47,921	$	195,367

Liabilities
Demand, savings and money market deposits		$	210,838	$	210,838			$	210,838
Time deposits			21,396		21,392				21,392
Borrowed funds			55,329		56,011				54,574	$	1,437
Unfunded loan commitments and letters of credit			240		240						240
	Total Liabilities	$	287,803	$	288,481			$	286,804	$	1,677
December 31, 2013
Assets
Cash and due from banks		$	4,043	$	4,043	$	4,043
Short-term assets			14,906		14,906			$	14,906
Securities held to maturity			11,687		11,765		243		11,505	$	17
Loans held for sale			354		355						355
Net loans (excludes leases)			183,155		184,737						184,737
Other assets			1,765		2,578				1,607		971	(a)
	Total Assets	$	215,910	$	218,384	$	4,286	$	28,018	$	186,080

Liabilities
Demand, savings and money market deposits		$	197,465	$	197,465			$	197,465
Time deposits			23,466		23,487				23,487
Borrowed funds			44,776		45,607				44,320	$	1,287
Unfunded loan commitments and letters of credit			224		224						224
	Total Liabilities	$	265,931	$	266,783			$	265,272	$	1,511
(a)	Represents estimated fair value of Visa Class B common shares, which was estimated solely based upon the December 31, 2014 and December 31, 2013 closing price for the Visa Class A common shares, respectively, and the Visa Class B common share conversion rate, which reflects adjustments in respect of all litigation funding by Visa as of that date. The transfer restrictions on the Visa Class B common shares could impact the aforementioned estimate, until they can be converted to Class A common shares. See Note 22 Commitments and Guarantees for additional information.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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- Definition

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, provide the aggregate carrying amount of ineligible items included in each line item in the balance sheet, if any; (b) the difference between the aggregate fair value and the aggregate unpaid principal balance (assuming contractual principal amounts and fair value option elected) of: (i) loans and long-term receivables (other than securities otherwise reported at fair value) and (ii) long-term debt instruments; (c) for loans held as assets for which the fair value option has been elected: (i) the aggregate fair value of loans that are 90 days or more past due, (ii) if the policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status, and (iii) the difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both; (2) for items included in the income statement: (a) the amounts of gains and losses from fair value changes included in earnings and in which line in the income statement those gains and losses are reported whether or not combined with gains and losses from items required to be accounted for at fair value; (b) for loans and other receivables held as assets, the estimated amount of gains or losses included in earnings attributable to changes in instrument-specific credit risk; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk, the estimated amount of gains and losses from fair value changes included in earnings that are attributable to changes in the instrument-specific credit risk; and (3) certain other disclosures as required or determined to be provided.

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