The PNC Financial Services Group, Inc. (PNC) 10-K 11 Mar 10 2009 FY Annual report Financial data

Statement Of Income Interest Ba

Statement Of Income Interest Based Revenue (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009		12 Months Ended Dec. 31, 2008		12 Months Ended Dec. 31, 2007
Interest Income
Loans	$8,919		$4,138		$4,232
Investment securities	2,688		1,746		1,429
Other	479		417		483
Total interest income	12,086		6,301		6,144
Interest Expense
Deposits	1,741		1,485		2,053
Borrowed funds	1,262		962		1,144
Total interest expense	3,003		2,447		3,197
Net interest income	9,083		3,854		2,947
Noninterest Income
Asset management	858		686		784
Consumer services	1,290		623		692
Corporate services	1,021		704		713
Residential mortgage	990		0		0
Service charges on deposits	950		372		348
Net gains on sales of securities	550		106		1
Other-than-temporary impairments	(1,935)		(312)		(6)
Less: Noncredit portion of other-than-temporary impairments	(1,358)	[1]	0	[1]	0	[1]
Net other-than-temporary impairments	(577)		(312)		(6)
Gain on BlackRock/BGI transaction	1,076		0		0
Other	987		263		412
Total noninterest income	7,145		2,442		2,944
Total revenue	16,228		6,296		5,891
Provision For Credit Losses	3,930		1,517		315
Noninterest Expense
Personnel	4,119		1,766		1,815
Occupancy	713		331		318
Equipment	695		280		247
Marketing	233		123		113
Other	3,313		1,185		1,159
Total noninterest expense	9,073		3,685		3,652
Income from continuing operations before income taxes and noncontrolling interests	3,225		1,094		1,924
Income taxes	867		298		561
Income from continuing operations before noncontrolling interests	2,358		796		1,363
Income from discontinued operations (net of income taxes of $54, $63 and $66)	45		118		128
Net income	2,403		914		1,491
Less: Net income (loss) attributable to noncontrolling interests	(44)		32		24
Preferred stock dividends	388		21		0
Preferred stock discount accretion	56		0		0
Net income attributable to common shareholders	$2,003		$861		$1,467
From continuing operations
Basic	4.3		2.15		4.02
Diluted	4.26		2.1		3.94
From net income
Basic	4.4		2.49		4.4
Diluted	4.36		2.44		4.32
Average Common Shares Outstanding
Basic	454		344		331
Diluted	455		346		334
[1]Included in accumulated other comprehensive loss.

1_Statement Of Income Interest

Statement Of Income Interest Based Revenue (Parenthetical) (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Income from discontinued operations, income taxes	$54	$63	$66

Statement Of Financial Position

Statement Of Financial Position Unclassified - Deposit Based Operations (USD $)
In Millions	Dec. 31, 2009		Dec. 31, 2008
Assets
Cash and due from banks	$4,288		$4,471
Federal funds sold and resale agreements (includes $990 and $1,072 measured at fair value)	2,390	[1]	1,856	[1]
Trading securities	2,124		1,725
Interest-earning deposits with banks	4,488		14,859
Loans held for sale (includes $2,062 and $1,400 measured at fair value)	2,539	[1]	4,366	[1]
Investment securities	56,027		43,473
Loans (includes $88 measured at fair value at December 31, 2009)	157,543	[1]	175,489	[1]
Allowance for loan and lease losses	(5,072)		(3,917)
Net loans	152,471		171,572
Goodwill	9,505		8,868
Other intangible assets	3,404		2,820
Equity investments	10,254		8,554
Other (includes $486 measured at fair value at December 31, 2009)	22,373	[1]	28,517	[1]
Total assets	269,863		291,081
Deposits
Noninterest-bearing	44,384		37,148
Interest-bearing	142,538		155,717
Total deposits	186,922		192,865
Borrowed funds
Federal funds purchased and repurchase agreements	3,998		5,153
Federal Home Loan Bank borrowings	10,761		18,126
Bank notes and senior debt	12,362		13,664
Subordinated debt	9,907		11,208
Other	2,233		4,089
Total borrowed funds	39,261		52,240
Allowance for unfunded loan commitments and letters of credit	296		344
Accrued expenses	3,590		3,949
Other	7,227		14,035
Total liabilities	237,296		263,433
Equity
Preferred stock	0	[2]	0	[2]
Common stock - $5 par value Authorized 800 shares, issued 471 and 452 shares	2,354		2,261
Capital surplus - preferred stock	7,974		7,918
Capital surplus - common stock and other	8,945		8,328
Retained earnings	13,144	[3]	11,461	[3]
Accumulated other comprehensive loss	(1,962)	[3]	(3,949)	[3]
Common stock held in treasury at cost: 9 and 9 shares	(513)		(597)
Total shareholders' equity	29,942		25,422
Noncontrolling interests	2,625		2,226
Total equity	32,567	[4]	27,648	[4]
Total liabilities and equity	$269,863		$291,081
[1]Amounts represent items for which the Corporation has elected the fair value option.
[2]Par value less than $.5 million at each date.
[3]Retained earnings at January 1, 2009 was increased $110 million representing the after-tax noncredit portion of other-than-temporary impairment losses recognized in net income during 2008 that has been reclassified to accumulated other comprehensive loss.
[4]The par value of our preferred stock outstanding was less than $.5 million at each date and, therefore, is excluded from this presentation.

2_Statement Of Financial Positi

Statement Of Financial Position Unclassified - Deposit Based Operations (Parenthetical) (USD $)
In Millions, except Per Share data	Dec. 31, 2009	Dec. 31, 2008
Federal funds sold and resale agreements, fair value	$990	$1,072
Loans held for sale, fair value	2,062	1,400
Loans, fair value	88	0
Other, fair value	$486	$0
Common stock, par value	$5	$5
Common stock, Authorized	800	800
Common stock, issued	471	452
Common stock held in treasury at cost, shares	9	9

Statement Of Shareholders Equit

Statement Of Shareholders Equity And Other Comprehensive Income (USD $)
In Millions	Series K Preferred Stock	Series K Preferred Stock Capital Surplus - Preferred Stock	Series L Preferred Stock	Series L Preferred Stock Capital Surplus - Preferred Stock	Series N Preferred Stock		Series N Preferred Stock Capital Surplus - Preferred Stock		Supervisory Capital Assessment Program	Supervisory Capital Assessment Program Common Stock	Supervisory Capital Assessment Program Capital Surplus - Common Stock and Other	Common Stock Activity	Common Stock Activity Common Stock	Common Stock Activity Capital Surplus - Common Stock and Other	Common Stock		Capital Surplus - Preferred Stock		Capital Surplus - Common Stock and Other		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Noncontrolling Interests		Total
Beginning Balance at Dec. 31, 2006															$1,764	[1]			$1,651	[1]	$10,985	[1]	($235)	[1]	($3,377)	[1]	$885	[1]	$11,673	[1]
Beginning Balance (in shares) at Dec. 31, 2006															293	[1]
Net income																					1,467						24		1,491
Net unrealized securities gains (losses)																							(76)						(76)
Net unrealized gains (losses) on cash flow hedge derivatives																							188						188
Pension, other postretirement and postemployment benefit plan adjustments																							(29)						(29)
Other																							5						5
Comprehensive income (loss)																											24		1,579
Cash dividends declared - Common																					(806)								(806)
Net effect of adopting FASB ASC 840-35																					(149)								(149)
Treasury stock issued for acquisitions (in shares)															56
Treasury stock issued for acquisitions																			872						3,147				4,019
Treasury stock activity (in shares)															(8)
Treasury stock activity																			(17)						(648)				(665)
Tax benefit of stock option plans																			18										18
Stock options granted																			28										28
Effect of BlackRock equity transactions																			53										53
Restricted stock/unit and incentive/performance unit share transactions																			13										13
Other																											745		745
Ending Balance (in shares) at Dec. 31, 2007															341	[1]
Ending Balance at Dec. 31, 2007															1,764	[1]			2,618	[1]	11,497	[1]	(147)	[1]	(878)	[1]	1,654	[1]	16,508	[1]
Net effect of adopting FASB ASC 715-60																					(12)								(12)
Net effect of adopting FASB ASC 820 and FASB ASC 825-10																					17								17
Restated Beginning Balance (in shares)															341
Restated Beginning Balance															1,764				2,618		11,502		(147)		(878)		1,654		16,513
Net income																					882						32		914
Net unrealized securities gains (losses)																							(3,459)						(3,459)
Net unrealized gains (losses) on cash flow hedge derivatives																							199						199
Pension, other postretirement and postemployment benefit plan adjustments																							(490)						(490)
Other																							(52)						(52)
Comprehensive income (loss)																											32		(2,888)
Cash dividends declared - Common																					(902)								(902)
Cash dividends declared - Preferred																					(21)								(21)
Common stock activity - acquisition (in shares)															99
Common stock activity - acquisition															497				5,419										5,916
Treasury stock activity (in shares)															3
Treasury stock activity																			(110)						281				171
TARP Warrant																			304	[2]									304	[2]
Tax benefit of stock option plans																			17										17
Stock options granted																			22										22
Effect of BlackRock equity transactions																			43										43
Restricted stock/unit and incentive/performance unit share transactions																			15										15
Other																											540		540
Stock issuance	493	493	150	150	7,275	[2]	7,275	[2]
Ending Balance (in shares) at Dec. 31, 2008															443	[1]
Ending Balance at Dec. 31, 2008															2,261	[1]	7,918	[1]	8,328	[1]	11,461	[1]	(3,949)	[1]	(597)	[1]	2,226	[1]	27,648	[1]
Cumulative effect of adopting FASB ASC 320-10																					110		(110)						0
Restated Beginning Balance (in shares)															443
Restated Beginning Balance															2,261		7,918		8,328		11,571		(4,059)		(597)		2,226		27,648
Net income																					2,447						(44)		2,403
Other-than-temporary losses on debt securities																							(706)						(706)
Net unrealized securities gains (losses)																							2,866						2,866
Net unrealized gains (losses) on cash flow hedge derivatives																							(208)						(208)
Pension, other postretirement and postemployment benefit plan adjustments																							125						125
Other																							20						20
Comprehensive income (loss)																											(44)		4,500
Cash dividends declared - Common																					(430)								(430)
Cash dividends declared - Preferred																					(388)								(388)
Preferred stock discount accretion																	56				(56)								0
Treasury stock activity																			(158)	[3]					84	[3]			(74)	[3]
Other																			79								443		522
Stock issuance (in shares)										15			4
Stock issuance									624	75	549	165	18	147
Ending Balance (in shares) at Dec. 31, 2009															462	[1]
Ending Balance at Dec. 31, 2009															$2,354	[1]	$7,974	[1]	$8,945	[1]	$13,144	[1]	($1,962)	[1]	($513)	[1]	$2,625	[1]	$32,567	[1]
[1]The par value of our preferred stock outstanding was less than $.5 million at each date and, therefore, is excluded from this presentation.
[2]Issued to the US Department of Treasury on December 31, 2008 under the TARP Capital Purchase Program.
[3]Net treasury stock activity totaled less than .5 million shares issued.

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect Deposit Based Operations (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Operating Activities
Net income	$2,403	$914	$1,491
Adjustments to reconcile net income to net cash provided (used) by operating activities
Provision For Credit Losses	3,930	1,517	315
Depreciation and amortization	978	463	391
Deferred income taxes (benefit)	932	(261)	78
Net gains on sales of securities	(550)	(106)	(1)
Net other-than-temporary impairments	577	312	6
Gain on BlackRock/BGI transaction	(1,076)	0	0
Net losses (gains) related to BlackRock LTIP shares adjustment	(103)	(246)	127
Undistributed earnings of BlackRock	(144)	(129)	(207)
Visa redemption gain	0	(95)	0
Excess tax benefits from share-based payment arrangements	(1)	(13)	(15)
Net change in
Trading securities and other short-term investments	61	1,459	(552)
Loans held for sale	1,110	303	(1,441)
Other assets	5,485	(1,974)	37
Accrued expenses and other liabilities	(8,118)	5,140	(498)
Other	269	130	(147)
Net cash provided (used) by operating activities	5,753	7,414	(416)
Sales
Securities available for sale	18,861	10,283	6,056
Visa shares	0	95	0
Loans	644	76	329
Repayments/maturities
Securities available for sale	7,291	4,225	4,374
Securities held to maturity	495	21	0
Purchases
Securities available for sale	(34,078)	(19,381)	(15,884)
Securities held to maturity	(2,367)	(101)	0
Loans	(970)	(249)	(2,747)
Net change in
Federal funds sold and resale agreements	(560)	1,301	(1,147)
Interest-earning deposits with Federal Reserve	10,124	(6,234)	0
Loans	13,863	(4,595)	(2,160)
Net cash received from (paid for) acquisition and divestiture activity	(3,396)	2,761	(2,543)
Purchases of corporate and bank-owned life insurance	0	(350)	(117)
Other	(428)	(838)	(800)
Net cash provided (used) by investing activities	9,479	(12,986)	(14,639)
Net change in
Noninterest-bearing deposits	7,169	1,719	230
Interest-bearing deposits	(9,849)	2,065	1,769
Federal funds purchased and repurchase agreements	(1,173)	(8,081)	4,057
Federal Home Loan Bank short-term borrowings	280	(2,000)	2,000
Other short-term borrowed funds	(1,726)	840	514
Sales/issuances
Federal Home Loan Bank long-term borrowings	2,092	5,050	4,750
Bank notes and senior debt	2,461	3,626	4,523
Subordinated debt	0	759	943
Other long-term borrowed funds	234	96	250
Perpetual trust securities	0	369	490
Preferred stock - TARP	0	7,275	0
Preferred stock - Other	0	492	0
TARP Warrant	0	304	0
Supervisory Capital Assessment Program-common stock	624	0	0
Common and treasury stock	247	375	253
Repayments/maturities
Federal Home Loan Bank long-term borrowings	(9,671)	(1,158)	(232)
Bank notes and senior debt	(3,887)	(3,815)	(1,590)
Subordinated debt	(1,000)	(140)	(887)
Other long-term borrowed funds	(211)	(156)	(217)
Excess tax benefits from share-based payment arrangements	1	13	15
Acquisition of treasury stock	(188)	(234)	(963)
Preferred stock cash dividends paid	(388)	(21)	0
Common stock cash dividends paid	(430)	(902)	(806)
Net cash provided (used) by financing activities	(15,415)	6,476	15,099
Net Increase (Decrease) In Cash And Due From Banks	(183)	904	44
Cash and due from banks at beginning of period	4,471	3,567	3,523
Cash and due from banks at end of period	4,288	4,471	3,567
Supplemental Disclosures
Interest paid	3,151	2,145	2,973
Income taxes paid	66	797	662
Income taxes refunded	718	91	3
Non-cash Investing and Financing Items
Issuance of common stock for acquisitions	0	5,916	4,019
Issuance of preferred stock for National City acquisition	0	150	0
Transfer from loans held for sale to loans, net	172	1,763	(288)
Transfer from trading securities to investment securities	0	599	0
Transfer from loans to foreclosed assets	$1,012	$45	$24

BUSINESS

BUSINESS
	12 Months Ended Dec. 31, 2009
BUSINESS	BUSINESS PNC is one of the largest diversified financial services companies in the United States and is headquartered in Pittsburgh, Pennsylvania. PNC has businesses engaged in retail banking, corporate and institutional banking, asset management, residential mortgage banking and global investment servicing, providing many of its products and services nationally and others in PNCs primary geographic markets located in Pennsylvania, Ohio, New Jersey, Michigan, Maryland, Illinois, Indiana, Kentucky, Florida, Missouri, Virginia, Delaware, Washington, D.C., and Wisconsin. PNC also provides certain investment servicing internationally. As described in Note 1 Accounting Policies and Note 2 Acquisitions and Divestitures, PNC acquired National City Corporation (National City) on December31, 2008.

ACCOUNTING POLICIES

ACCOUNTING POLICIES
	12 Months Ended Dec. 31, 2009
ACCOUNTING POLICIES	NOTE 1 ACCOUNTING POLICIES BASIS OF FINANCIAL STATEMENT PRESENTATION Our consolidated financial statements include the accounts of the parent company and its subsidiaries, most of which are wholly owned, and certain partnership interests and variable interest entities. We acquired National City on December31, 2008. Our Consolidated Balance Sheet as of December31, 2009 and 2008 and other information as of and subsequent to December31, 2008 included in these consolidated financial statements reflects the impact of National City. Also, the Consolidated Income Statement for all years presented and related Notes to Consolidated Financial Statements reflect the global investment servicing business as discontinued operations. See Note 2 Acquisitions and Divestitures. We prepared these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America. We have eliminated intercompany accounts and transactions. We have also reclassified certain prior year amounts to conform with the 2009 presentation, including reclassifications required in connection with the adoption of new guidance impacting the accounting and reporting of noncontrolling interests in consolidated financial statements. These reclassifications did not have a material impact on our consolidated financial condition or results of operations. Effective July1, 2009, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. (SFAS) 168, The FASB Accounting Standards Codification TM and the Hierarchy of Generally Accepted Accounting Principlesa replacement of FASB Statement No.162. The FASB Accounting Standards CodificationTM (FASB ASC) is the single source of authoritative nongovernmental generally accepted accounting principles (GAAP) in the United States of America. The FASB ASC was effective for financial statements that cover interim and annual periods ending after September15, 2009. Technical references to GAAP included in these Notes To Consolidated Financial Statements are provided under the new FASB ASC structure. We have considered the impact on these consolidated financial statements of events occurring subsequent to December31, 2009. USE OF ESTIMATES We prepare the consolidated financial statements using financial information available at the time, which requires us to make estimates and assumptions that affect the amounts reported. Our most significant estimates pertain to our allowance for loan and lease losses, impaired loans, fair value measurements, including security valuations and residential mortgage servicing rights, and revenue recognition. Actual results may differ from the estimates and the differences may be material to the consolidated financial statements. INVESTMENT IN BLACKROCK, INC. We account for our investment in the common stock, Series B and Series D Preferred Stocks of BlackRock (both deemed to be in substance common stock) under the equity method of accounting. On January31, 2010, the Series D Preferred Stock was converted to Series B Preferred Stock. The investment in BlackRock is reflected on our Consolidated Balance Sheet in the

ACQUISITIONS AND DIVESTITURES

ACQUISITIONS AND DIVESTITURES
	12 Months Ended Dec. 31, 2009
ACQUISITIONS AND DIVESTITURES	NOTE 2 ACQUISITIONS AND DIVESTITURES PENDING SALE OF PNC GLOBAL INVESTMENT SERVICING On February2, 2010, we entered into a definitive agreement to sell PNC Global Investment Servicing Inc. (GIS), a leading provider of processing, technology and business intelligence services to asset managers, broker-dealers and financial advisors worldwide, for $2.3 billion in cash. We currently anticipate closing the transaction in the third quarter of 2010. Completion of the transaction is subject to regulatory approvals and certain other closing conditions. Results of operations of GIS are presented as income from discontinued operations, net of income taxes, on our Consolidated Income Statement for all years presented. Income taxes related to discontinued operations for 2009 include $18 million of deferred income taxes provided on the difference in the stock investment and tax basis of GIS, a US subsidiary. Investment in Discontinued Operations December31, 2009 In millions Interest-earning deposits with banks $ 255 Goodwill 1,243 Other intangible assets 51 Other 359 Total assets $ 1,908 Deposits $ 93 Accrued expenses 266 Other 1,009 Total liabilities $ 1,368 Net assets $ 540 NATIONAL CITY CORPORATION On December31, 2008, we acquired National City for approximately $6.1 billion. The total consideration included approximately $5.6 billion of common stock, representing approximately 95million shares, $150 million of preferred stock and cash of $379 million paid to warrant holders by National City. The transaction required no future contingent consideration payments. National City, based in Cleveland, Ohio, was one of the nations largest financial services companies. At December31, 2008, prior to our acquisition, National City had total assets of approximately $153 billion and total deposits of approximately $101 billion. This acquisition was accounted for under the purchase method of accounting. The purchase price was allocated to the National City assets acquired and liabilities assumed using their estimated fair values as of the acquisition date. During 2009, additional information was obtained about the fair value of assets acquired and liabilities assumed as of December31, 2008 which resulted in adjustments to the initial purchase price allocation. Most significantly, additional information was obtained on the credit quality of certain loans as of the acquisition date which resulted in additional fair value writedowns on acquired impaired loans. These adjustments resulted in the allocation of $446 million to other intangible assets and $891 million to premises and equipment which had been reduced in the initial purchase price allocation. The purchase price allocation was completed as of December31, 2009 with goodwill of $647 million recognized from the National City acquisition. As a condition for regulatory approval of the transaction, we were required to divest 61 branches. This divestiture, which included $4.1 billion of deposits and $.8 billion of loans, was completed during the third quarter of 2009. A summary of adjustme

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES
	12 Months Ended Dec. 31, 2009
VARIABLE INTEREST ENTITIES	NOTE 3 VARIABLE INTEREST ENTITIES We are involved with various entities in the normal course of business that were deemed to be VIEs. We consolidated certain VIEs as of December31, 2009 and 2008 for which we were determined to be the primary beneficiary. Consolidated VIEs PNC Is Primary Beneficiary In millions Aggregate Assets Aggregate Liabilities Tax credit investments (a) December31, 2009 $ 1,933 $ 808 December31, 2008 $ 1,690 $ 921 Credit Risk Transfer Transaction December31, 2009 $ 860 $ 860 December31, 2008 $ 1,070 $ 1,070 (a) Amounts reported primarily represent investments in low income housing projects. We hold significant variable interests in VIEs that have not been consolidated because we are not considered the primary beneficiary. Information on these VIEs follows: Non-Consolidated VIEs Significant Variable Interests In millions Aggregate Assets Aggregate Liabilities PNCRisk of Loss December31, 2009 Market Street $ 3,698 $ 3,718 $ 6,155 (a) Tax credit investments (b)(c) 1,786 1,156 743 Collateralized debt obligations 23 2 Total $ 5,507 $ 4,874 $ 6,900 December31, 2008 Market Street $ 4,916 $ 5,010 $ 6,965 (a) Tax credit investments (b)(c) 1,517 1,041 811 Collateralized debt obligations 20 2 Total $ 6,453 $ 6,051 $ 7,778 (a) PNCs risk of loss consists of off-balance sheet liquidity commitments to Market Street of $5.6 billion and other credit enhancements of $.6 billion at December31, 2009. The comparable amounts were $6.4 billion and $.6 billion at December31, 2008. (b) Amounts reported primarily represent investments in low income housing projects. (c) Aggregate assets and aggregate liabilities represent estimated balances due to limited availability of financial information associated with certain acquired National City partnerships. MARKET STREET Market Street is a multi-seller asset-backed commercial paper conduit that is owned by an independent third party. Market Streets activities primarily involve purchasing assets or making loans secured by interests in pools of receivables from US corporations that desire access to the commercial paper market. Market Street funds the purchases of assets or loans by issuing commercial paper which has been rated A1/P1/F1 by Standard Poors, Moodys, and Fitch, respectively, and is supported by pool-specific credit enhancements, liquidity facilities and program-level credit enhancement. Generally, Market Street mitigates its potential interest rate risk by entering into agreements with its borrowers that reflect interest rates based upon its weighted average commercial paper cost of funds. During 2008 and 2009, Market Street met all of its funding needs through the issuance of commercial paper. PNC Bank, N.A. provides certain administrative services, the program-level credit enhancement and all of the liquidity facilities to Market Street i

LOANS, COMMITMENTS TO EXTEND CR

LOANS, COMMITMENTS TO EXTEND CREDIT AND CONCENTRATIONS OF CREDIT RISK
	12 Months Ended Dec. 31, 2009
LOANS, COMMITMENTS TO EXTEND CREDIT AND CONCENTRATIONS OF CREDIT RISK	NOTE 4 LOANS, COMMITMENTS TO EXTEND CREDIT AND CONCENTRATIONS OF CREDIT RISK Loans outstanding were as follows: In millions December31 2009 December31 2008 Commercial $ 54,818 $ 69,220 Commercial real estate 23,131 25,736 Consumer 53,582 52,489 Residential real estate 19,810 21,583 Equipment lease financing 6,202 6,461 Total loans $ 157,543 $ 175,489 Loans are presented net of unearned income, net deferred loan fees, unamortized discounts and premiums, and purchase discounts and premiums totaling $3.2 billion and $4.3 billion at December31, 2009 and December31, 2008, respectively. Future accretable interest related to purchased impaired loans is not included in loans outstanding. Concentrations of credit risk exist when changes in economic, industry or geographic factors similarly affect groups of counterparties whose aggregate exposure is material in relation to our total credit exposure. Loans outstanding and related unfunded commitments are concentrated in our primary geographic markets. At December31, 2009, no specific industry concentration exceeded 6% of total commercial loans outstanding. In the normal course of business, we originate or purchase loan products whose contractual features, when concentrated, may increase our exposure as a holder and servicer of those loan products. Possible product terms and features that may create a concentration of credit risk would include loan products whose terms permit negative amortization, a high loan-to-value ratio, features that may expose the borrower to future increases in repayments above increases in market interest rates, below-market interest rates and interest-only loans, among others. We originate interest-only loans to commercial borrowers. These products are standard in the financial services industry and the features of these products are considered during the underwriting process to mitigate the increased risk of this product feature that 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. We also originate home equity loans and lines of credit that result in a credit concentration of high loan-to-value ratio loan products at the time of origination. In addition, these loans are concentrated in our primary geographic markets. Certain loans are accounted for at fair value with changes in the fair value reported in current period earnings. The fair value of these loans was $107 million, or approximately .07% of the total loan portfolio, at December31, 2009. Loans held for sale are reported separately on the Consolidated Balance Sheet and are not included in the table above. Interest income from total loans held for sale was $270 million in 2009, $166 million in 2008 and $184 million in 2007 and is included in Other interest income on our Consolidated Income Statement. Net Unfunded Credit Commitments In millions December31 2009 December31 2008 Commercial and commercial real estate $ 60,143 $ 60,020 Home equi

ASSET QUALITY

ASSET QUALITY
	12 Months Ended Dec. 31, 2009
ASSET QUALITY	NOTE 5 ASSET QUALITY The following table sets forth nonperforming assets and related information. These amounts exclude purchased impaired loans acquired in connection with the National City acquisition. See Note 6 Purchased Impaired Loans Related to National City for further information. Dollars in millions December31, 2009 December31, 2008 Nonaccrual loans Commercial $ 1,806 $ 576 Commercial real estate 2,140 766 Equipment lease financing 130 97 TOTAL COMMERCIAL LENDING 4,076 1,439 Consumer Home equity 356 66 Other 36 4 Total consumer 392 70 Residential real estate Residential mortgage 955 139 Residential construction 248 14 Total residential real estate 1,203 153 TOTAL CONSUMER LENDING 1,595 223 Total nonaccrual/nonperforming loans 5,671 1,662 Foreclosed and other assets Commercial lending 266 50 Consumer lending 379 469 Total foreclosed and other assets 645 519 Total nonperforming assets $ 6,316 $ 2,181 Nonperforming loans to total loans 3.60 % .95 % Nonperforming assets to total loans and foreclosed and other assets 3.99 1.24 Nonperforming assets to total assets 2.34 .75 Interest on nonperforming loans Computed on original terms $ 302 $ 115 Recognized prior to nonperforming status 90 60 Past due loans (a)(b) Accruing loans past due 90 days or more $ 884 $ 395 As a percentage of total loans .60 % .24 % (a) Excludes loans that are government insured/guaranteed, primarily residential mortgages. (b) Excludes purchased impaired loans acquired from National City totaling $2.7 billion at December31, 2009 and $2.0 billion at December31, 2008. These loans are excluded as they were recorded at estimated fair value when acquired and are currently considered performing loans due to the accretion of interest income in purchase accounting. Loans whose contractual terms have been restructured in a manner which grants a concession to a borrower experiencing financial difficulties where we do not receive adequate compensation are considered troubled debt restructurings. Troubled debt restructurings typically result from our loss mitigation activities and could include rate reductions, principal forgiveness, forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of collateral. Troubled debt restructurings included in total nonperforming loans in the table above totaled $440 million at December31, 2009. Net interest income less the provision for credit losses was $5.1 billion for 2009 compared with $2.3 billion for 2008 and $2.6 billion for 2007. Changes in the allowance for loan and lease losses follow: In millions 2009 2008 2007 January1 $ 3,917 $ 830 $ 560 Cha

PURCHASED IMPAIRED LOANS RELATE

PURCHASED IMPAIRED LOANS RELATED TO NATIONAL CITY
	12 Months Ended Dec. 31, 2009
PURCHASED IMPAIRED LOANS RELATED TO NATIONAL CITY	NOTE 6 PURCHASED IMPAIRED LOANS RELATED TO NATIONAL CITY At December31, 2008, we identified certain loans related to the National City acquisition, for which there was evidence of credit quality deterioration since origination and it was probable that we would be unable to collect all contractually required principal and interest payments. Evidence of credit quality deterioration included statistics such as past due status, declines in current borrower FICO credit scores, geographic concentration and increases in current loan-to-value ratios. GAAP requires these loans to be recorded at fair value at acquisition date and prohibits the carrying over or the creation of valuation allowances in the initial accounting for such loans acquired in a transfer. GAAP allows purchasers to aggregate impaired loans acquired in the same fiscal quarter into one or more pools, provided that the loans have common risk characteristics. A pool is then accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. With respect to the National City acquisition, we aggregated homogeneous consumer and residential real estate loans into pools with common risk characteristics. We account for commercial and commercial real estate loans individually. During 2009, additional information was obtained about the credit quality of acquired loans as of the acquisition date. As a result, an additional $2.6 billion of acquired loans were deemed impaired as of December31, 2008 and the net carryover allowance for loan losses attributable to these loans of $112 million was released. Adjustments to the fair value of impaired loans of $1.8 billion were also recognized. At December31, 2009 and December31, 2008, purchased impaired loans had a carrying value of $10.4 billion and $12.7 billion, respectively. During 2009, the amount of purchased impaired loans decreased by a net $2.3 billion as a result of payments and other exit activities primarily offset by accretion. The unpaid principal balance of these loans was $15.4 billion at December31, 2009 and $21.9 billion at December31, 2008, as detailed below: Purchased Impaired Loans December31, 2009 December31, 2008 In millions Recorded Investment Outstanding Balance Recorded Investment Outstanding Balance Commercial (a) $ 558 $ 1,016 $ 1,016 $ 2,485 Commercial real estate (a) 1,694 2,705 1,911 3,856 Consumer 3,457 5,097 3,887 6,618 Residential real estate 4,663 6,620 5,895 8,959 Total $ 10,372 $ 15,438 $ 12,709 $ 21,918 (a) Includes purchased impaired loans held for sale. The recorded investment and outstanding balance of these loans was $85 million and $200 million, respectively, at December31, 2009. The excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized in interest income over the remaining life of the loan using the constant effective yield method. The difference between contractually required payments at acquisition and the cash flows e

INVESTMENT SECURITIES

INVESTMENT SECURITIES
	12 Months Ended Dec. 31, 2009
INVESTMENT SECURITIES	NOTE 7 INVESTMENT SECURITIES Amortized Unrealized Fair In millions Cost (a) Gains Losses Value December31, 2009 SECURITIES AVAILABLE FOR SALE Debt securities US Treasury and government agencies $ 7,548 $ 20 $ (48 ) $ 7,520 Residential mortgage-backed Agency 24,076 439 (77 ) 24,438 Non-agency 10,419 236 (2,353 ) 8,302 Commercial mortgage-backed Agency 1,299 10 (12 ) 1,297 Non-agency 4,028 42 (222 ) 3,848 Asset-backed 2,019 30 (381 ) 1,668 State and municipal 1,346 58 (54 ) 1,350 Other debt 1,984 38 (7 ) 2,015 Total debt securities 52,719 873 (3,154 ) 50,438 Corporate stocks and other 360 360 Total securities available for sale $ 53,079 $ 873 $ (3,154 ) $ 50,798 SECURITIES HELD TO MATURITY Debt securities Commercial mortgage-backed (non-agency) $ 2,030 $ 195 $ 2,225 Asset-backed 3,040 109 $ (13 ) 3,136 Other debt 159 1 160 Total securities held to maturity $ 5,229 $ 305 $ (13 ) $ 5,521 December31, 2008 SECURITIES AVAILABLE FOR SALE Debt securities US Treasury and government agencies $ 738 $ 1 $ 739 Residential mortgage-backed Agency 22,744 371 $ (9 ) 23,106 Non-agency 13,205 (4,374 ) 8,831 Commercial mortgage-backed (non-agency) 4,305 (859 ) 3,446 Asset-backed 2,069 4 (446 ) 1,627 State and municipal 1,326 13 (76 ) 1,263 Other debt 563 11 (15 ) 559 Total debt securities 44,950 400 (5,779 ) 39,571 Corporate stocks and other 575 (4 ) 571 Total securities available for sale $ 45,525 $ 400 $ (5,783 ) $ 40,142 SECURITIES HELD TO MATURITY Debt securities Commercial mortgage-backed (non-agency) $ 1,945 $ 10 $ (59 ) $ 1,896 Asset-backed 1,376 7 (25 ) 1,358 Other debt 10 10 Total securities held to maturity $ 3,331 $ 17 $ (84 ) $ 3,264 December31, 2007 SECURITIES AVAILABLE FOR SALE Debt securities US Treasury and government agencies $ 151 $ 4 $ 155 Residential mortgage-backed Agency 9,218 112 $ (16 ) 9,314 Non-agency 11,929 6 (297 ) 11,638 Commercial mortgage-backed (non-agency) 5,227 53 (16 ) 5,264 Asset-backed 2,878 4 (112 ) 2,770 State and municipal 340 1

FAIR VALUE

FAIR VALUE
	12 Months Ended Dec. 31, 2009
FAIR VALUE	NOTE 8 FAIR VALUE Fair Value Measurement Fair value is defined in GAAP as the price that would be received to sell an asset or the price paid to transfer a liability on the measurement date. The standard focuses on the exit price in the principal or most advantageous market for the asset or liability in an orderly transaction between willing market participants. GAAP establishes a fair value reporting hierarchy to maximize the use of observable inputs when measuring fair value and defines the three levels of inputs as noted below. Level 1 Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities may include debt securities, equity securities and listed derivative contracts that are traded in an active exchange market and certain US government agency securities that are actively traded in over-the-counter markets. Level 2 Observable inputs other than Level 1 such as: quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated to observable market data for substantially the full term of the asset or liability. Level 2 assets and liabilities may include debt securities, equity securities and listed derivative contracts with quoted prices that are traded in markets that are not active, and certain debt and equity securities and over-the-counter derivative contracts whose fair value is determined using a pricing model without significant unobservable inputs. This category generally includes agency residential and commercial mortgage-backed debt securities, asset-backed securities, corporate debt securities, residential mortgage loans held for sale, and derivative contracts. Level 3 Unobservable inputs that are supported by minimal or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities may include financial instruments whose value is determined using pricing models with internally developed assumptions, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category generally includes certain available for sale securities, commercial mortgage loans held for sale, private equity investments, trading securities, residential mortgage servicing rights, BlackRock Series C Preferred Stock and financial derivative contracts. The available for sale and trading securities within Level 3 include non-agency residential mortgage-backed securities, auction rate securities, certain private-issuer asset-backed securities and corporate debt securities. Nonrecurring items, primarily certain nonaccrual and other loans held for sale, commercial mortgage servicing rights, equity investments and other assets are also included in this category. Assets and liabilities measured at fair value on a recurring basis, including instruments for which PNC has elected the fair value option, follow. The assets and liabilities acquired from National City are include

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS
	12 Months Ended Dec. 31, 2009
GOODWILL AND OTHER INTANGIBLE ASSETS	NOTE 9 GOODWILL AND OTHER INTANGIBLE ASSETS Changes in goodwill by business segment during 2008 and 2009 follow: Changes in Goodwill by Business Segment (a) In millions Retail Banking Corporate Institutional Banking Asset Management Group Black- Rock Residential Mortgage Banking Other(b) Total January1, 2008 $ 4,702 $ 2,403 $ 14 $ 57 $ 1,229 $ 8,405 Sterlingacquisition 517 76 593 Hilliard Lyons divestiture (140 ) (140 ) Harris Williams contingent consideration 44 44 Other acquisitions (23 ) (2 ) 4 (21 ) BlackRock (13 ) (13 ) December31, 2008 5,056 2,521 14 44 1,233 8,868 National City acquisition 315 235 54 $ 43 647 Other acquisitions (2 ) 10 8 BlackRock (18 ) (18 ) December31, 2009 $5,369 $2,756 $68 $26 $43 $1,243 $9,505 (a) The Distressed Assets Portfolio business segment does not have any goodwill allocated to it. (b) Represents goodwill related to GIS. Changes in goodwill and other intangible assets during 2009 follow: Summary of Changes in Goodwill and Other Intangible Assets In millions Goodwill Customer- Related Servicing Rights January1, 2009 $ 8,868 $ 930 $ 1,890 Additions/adjustments: National City acquisition 647 451 18 Other acquisitions 8 Mortgage and other loan servicing rights 503 BlackRock (18 ) Reversal of prior impairment charge, net 29 Sale of servicing rights (74 ) Amortization (236 ) (107 ) December31, 2009 $ 9,505 $ 1,145 $ 2,259 We conduct a goodwill impairment test on our reporting units at least annually or more frequently if any adverse triggering events occur. Based on the results of our analysis, there were no impairment charges related to goodwill recognized in 2009, 2008 or 2007. The fair value of our reporting units is determined by using discounted cash flow and market comparability methodologies. Assets and liabilities of acquired entities are recorded at estimated fair value as of the acquisition date and are subject to refinement as information relative to the fair values at the date of acquisition becomes available. The purchase price allocation for the National City acquisition was completed as of December31, 2009 with goodwill of $647 million recognized. Our investment in BlackRock changes when BlackRock repurchases its shares in the open market or issues shares for an acquisition or pursuant to its employee compensation plans. We adjust goodwill when BlackRock repurchases its shares at an amount

LOAN SALES AND SECURITIZATIONS

LOAN SALES AND SECURITIZATIONS
	12 Months Ended Dec. 31, 2009
LOAN SALES AND SECURITIZATIONS	NOTE 10 LOAN SALES AND SECURITIZATIONS Loan Sales We sell residential and commercial mortgage loans in loan securitization transactions sponsored by Government National Mortgage Association (GNMA), FNMA, and FHLMC and in certain instances to other third-party investors. GNMA, FNMA, and the FHLMC securitize our transferred loans into mortgage-backed securities for sale into the secondary market. Generally, we do not retain any interest in the transferred loans other than mortgage servicing rights. Refer to Note 9 Goodwill and Other Intangible Assets for further discussion on our residential and commercial mortgage servicing rights assets. During 2009, residential and commercial mortgage loans sold totaled $19.8 billion and $5.7 billion, respectively. During 2008, commercial mortgage loans sold totaled $3.1 billion. There were no residential mortgage loans sales in 2008 as these activities were obtained through our acquisition of National City. Our continuing involvement in these loan sales consists primarily of servicing and limited repurchase obligations for loan and servicer breaches in representations and warranties. Generally, we hold a cleanup call repurchase option for loans sold with servicing retained to the other third-party investors. In certain circumstances as servicer, we advance principal and interest payments to the GSEs and other third-party investors and also may make collateral protection advances. Our risk of loss in these servicing advances has historically been minimal. We maintain a liability for estimated losses on loans expected to be repurchased as a result of breaches in loan and servicer representations and warranties. We have also entered into recourse arrangements associated with commercial mortgage loans sold to FNMA and FHLMC. Refer to Note 25 Commitments and Guarantees for further discussion on our repurchase liability and recourse arrangements. Our maximum exposure to loss in our loan sale activities is limited to these repurchase and recourse obligations. In addition, for certain loans transferred in the GNMA and FNMA transactions, we hold an option to repurchase individual delinquent loans that meet certain criteria. Without prior authorization from these GSEs, this option gives PNC the ability to repurchase the delinquent loan at par. Under GAAP, once we have the unilateral ability to repurchase the delinquent loan, effective control over the loan has been regained and we are required to recognize the loan and a corresponding repurchase liability on the balance sheet regardless of our intent to repurchase the loan. At December31, 2009 and December31, 2008, the balance of our repurchase option asset and liability totaled $577 million and $476 million, respectively. Securitizations In securitizations, loans are typically transferred to a qualifying special purpose entity (QSPE) that is demonstrably distinct from the transferor to transfer the risk from our Consolidated Balance Sheet. A QSPE is a bankruptcy-remote trust allowed to perform only certain passive activities. In addition, these entities are self-liquidating and in certain instances are structured as Real Estate Mortgage Investment

PREMISES, EQUIPMENT AND LEASEHO

PREMISES, EQUIPMENT AND LEASEHOLD IMPROVEMENTS
	12 Months Ended Dec. 31, 2009
PREMISES, EQUIPMENT AND LEASEHOLD IMPROVEMENTS	NOTE 11 PREMISES, EQUIPMENT AND LEASEHOLD IMPROVEMENTS Premises, equipment and leasehold improvements, stated at cost less accumulated depreciation and amortization, were as follows: December31 - in millions 2009 (a) 2008 Land $ 733 $ 577 Buildings 1,692 1,215 Equipment 3,423 2,773 Leasehold improvements 626 531 Total 6,474 5,096 Accumulated depreciation and amortization (2,277 ) (1,867 ) Net book value $ 4,197 $ 3,229 (a) Includes adjustments of the purchase price allocation related to the National City acquisition totaling $891 million. See Note 2 Acquisitions and Divestitures for additional information. Depreciation expense on premises, equipment and leasehold improvements totaled $466 million in 2009, $194 million in 2008 and $154 million in 2007. Depreciation expense on premises, equipment and leasehold improvements related to the discontinued operations of GIS totaled $29 million in 2009, $31 million in 2008, and $24 million in 2007. Amortization expense, primarily for capitalized internally developed software, was $79 million in 2009, $19 million in 2008 and $18 million in 2007. Amortization expense related to the discontinued operations of GIS was $26 million in 2009, $25 million in 2008, and $22 million in 2007. We lease certain facilities and equipment under agreements expiring at various dates through the year 2067. We account for these as operating leases. Rental expense on such leases amounted to $372 million in 2009, $184 million in 2008 and $194 million in 2007. Rental expense related to discontinued operations amounted to $16 million in 2009, $18 million in 2008, and $13 million in 2007. Required minimum annual rentals that we owe on noncancelable leases having initial or remaining terms in excess of one year totaled $2.6 billion at both December31, 2009 and December31, 2008. Future minimum annual rentals are as follows: 2010: $423 million, 2011: $303 million, 2012: $257 million, 2013: $236 million, 2014: $200 million, and 2015 and thereafter: $1.2 billion.

DEPOSITS

DEPOSITS
	12 Months Ended Dec. 31, 2009
DEPOSITS	NOTE 12 DEPOSITS The aggregate amount of time deposits with a denomination of $100,000 or more was $20.4 billion at December31, 2009 and $26.8 billion at December31, 2008. Total time deposits of $54.3 billion at December31, 2009 have future contractual maturities as follows: 2010: $37.0 billion, 2011: $6.3 billion, 2012: $7.7 billion, 2013: $1.4 billion, 2014: $.7 billion, and 2015 and thereafter: $1.2 billion.

BORROWED FUNDS

BORROWED FUNDS
	12 Months Ended Dec. 31, 2009
BORROWED FUNDS	NOTE 13 BORROWED FUNDS Bank notes along with senior and subordinated notes consisted of the following: December31, 2009 Dollars in millions Outstanding StatedRate Maturity Bank notes $ 2,677 zero5.70 % 20102047 Senior debt 9,685 .426.70 % 20102020 Bank notes and seniordebt $ 12,362 Subordinated debt Junior $ 3,022 .8310.18 % 20282068 Other 6,885 .608.11 % 20102019 Subordinated debt $ 9,907 Included in outstandings for the senior and subordinated notes in the table above are basis adjustment increases of $53 million and $154 million, respectively, related to fair value accounting hedges as of December31, 2009. Total borrowed funds of $39.3 billion at December31, 2009 have scheduled or anticipated repayments as follows: 2010: $13.0 billion, 2011: $4.9 billion, 2012: $5.5 billion, 2013: $3.4 billion, 2014: $2.1 billion, and 2015 and thereafter: $10.4 billion. Included in borrowed funds are FHLB borrowings of $10.8billion at December31, 2009, which are collateralizedby a blanket lien on residential mortgage and other real estate-related loans. FHLB advances of $4.2billion have scheduled maturities of less than one year. The remainder of the FHLB borrowings have balances that will mature from 20112030, with interest rates ranging from zero to7.33%. As part of the National City acquisition, PNC assumed liability for the conversion of $1.4billion of convertible senior notes. Interest on these notes is payable semiannually at a fixed rate of 4.0%. The maturity date of these notes is February1, 2011. PNC may not redeem these notes prior to their maturity date. Holders may convert the notes, at their option, prior to November15, 2010 under certain circumstances, including (i)if the trading price of the notes is less than a defined threshold measured against the market value of PNC common stock, (ii)any time after March31, 2008, if the market price of PNC common stock exceeds 130% of the conversion price of the notes in effect on the last trading day of the immediately preceding calendar quarter, or (iii)upon the occurrence of certain specific events. After November15, 2010, the holders may convert their notes at any time through the third scheduled trading date preceding the maturity date. The initial conversion rate equals 2.0725 shares per $1,000 face value of notes. The conversion rate will be subject to adjustment for stock splits, stock dividends, cash dividends in excess of certain thresholds, stock repurchases where the price exceeds market values, and certain other events. Upon conversion, PNC will pay cash equal to the principal balance of the notes and may issue shares of its common stock for any conversion value, determined over a 40day observation period, that exceeds the principal balance of the notes being converted. The maximum number of net common shares that PNC may be required to issue is 3.6million shares, subject to potential adjustment in the case of certain events, make-whole fundamental changes, or early terminat

CAPITAL SECURITIES OF SUBSIDIAR

CAPITAL SECURITIES OF SUBSIDIARY TRUSTS
	12 Months Ended Dec. 31, 2009
CAPITAL SECURITIES OF SUBSIDIARY TRUSTS	NOTE 14 CAPITAL SECURITIES OF SUBSIDIARY TRUSTS At December31, 2009, capital securities totaling $3.5 billion represented non-voting preferred beneficial interests in the assets of the following Trusts exclusive of those acquired as part of the National City acquisition: Trust Date Formed Description of Capital Securities Redeemable PNC Capital Trust C June 1998 $200 million due June 1, 2028, bearing interest at a floating rate per annum equal to 3-month LIBOR plus 57 basis points. The rate in effect at December 31, 2009 was .826%. On or after June 1, 2008 at par. PNC Capital Trust D December 2003 $300 million of 6.125% capital securities due December 15, 2033. On or after December 18, 2008 at par. PNC Capital Trust E February 2008 $450 million of 7.75% capital securities due March 15, 2068. On or after March 15, 2013 at par.* James Monroe Statutory Trust II July 2003 $4 million due July 31, 2033, bearing an interest rate equal to 3-month LIBOR plus 310 basis points. The rate in effect at December 31, 2009 was 3.351%. On or after July 31, 2008 at par. James Monroe Statutory Trust III September 2005 $8 million due December 15, 2035 at a fixed rate of 6.253%. The fixed rate remains in effect until September 15, 2010 at which time the securities pay a floating rate of LIBOR plus 155 basis points. On or after December 15, 2010. Yardville Capital Trust II June 2000 $15 million of 9.5% capital securities due June 22, 2030. On or after June 23, 2010 at par plus a premium of up to 4.75%. Yardville Capital Trust III March 2001 $6 million of 10.18% capital securities due June 2031. On or after June 8, 2011 at par plus a premium of up to 5.09%. Yardville Capital Trust IV February 2003 $15 million due March 1, 2033, bearing an interest rate equal to 3-month LIBOR plus 340 basis points. The rate in effect at December 31, 2009 was 3.656%. On or after March 1, 2008 at par. Yardville Capital Trust V September2003 $10 million due October 8, 2033, bearing an interest rate equal to 3-month LIBOR plus 300 basis points. The rate in effect at December 31, 2009 was 3.284%. On or after October 8, 2008 at par. Yardville Capital Trust VI June 2004 $15 million due July 23, 2034, bearing an interest rate equal to 3-month LIBOR plus 270 basis points. The rate in effect at December 31, 2009 was 2.983%. On or after July 23, 2009 at par. Sterling Financial Statutory Trust II June 2003 $35 million due June 26, 2033 at a fixed rate of 5.55%. The fixed rate remained in effect until June 26, 2008 at which time the securities began paying a floating rate of 3-month LIBOR plus 310 basis points. The rate in effect at December 31, 2009 was 3.351%. On or after June 26, 2008 at par. Sterling Financial Statutory Trust III December 2004 $15 million due December 15, 2034 at a fixed rate of 6%. The fixed rate remained in effect until December 15, 2009 at which time the securities began paying a floating rate of 3-month LIBOR plus 189 basis points. The rate in effect at

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS
	12 Months Ended Dec. 31, 2009
EMPLOYEE BENEFIT PLANS	NOTE 15 EMPLOYEE BENEFIT PLANS PENSION AND POSTRETIREMENT PLANS We have a noncontributory, qualified defined benefit pension plan covering eligible employees. The plan derives benefits from cash balance formulas based on compensation levels, age and length of service. Pension contributions are based on an actuarially determined amount necessary to fund total benefits payable to plan participants. National City had a qualified pension plan covering substantially all employees hired prior to April1, 2006. Pension benefits are derived from a cash balance formula, whereby credits based on salary, age, and years of service are allocated to employee accounts. The National City plan was merged with our qualified pension plan on December31, 2008. During 2009, no changes to either plan design or benefits occurred. Effective January1, 2010, the pension plan has one design for all eligible employees. All new participants on or after January1, 2010 will receive a fixed earnings credit of 3%. However, participants as of December31, 2009 will be maintained at the earnings credit level they have attained as of that date going forward. The percentage will not increase in future years. We also maintain nonqualified supplemental retirement plans for certain employees. On December31, 2008, the participants of National Citys supplemental executive retirement plans became 100% vested due to the change in control. We also provide certain health care and life insurance benefits for qualifying retired employees (postretirement benefits) through various plans. The nonqualified pension and postretirement benefit plans are unfunded. Effective January1, 2010, various benefit plans were amended to provide one plan design to all eligible employees. We use a measurement date of December31 for plan assets and benefit obligations. A reconciliation of the changes in the projected benefit obligation for qualified pension, nonqualified pension and postretirement benefit plans as well as the change in plan assets for the qualified pension plan follows: Qualified Pension Nonqualified Pension Postretirement Benefits December31 (Measurement Date) in millions 2009 2008 2009 2008 2009 2008 Accumulated benefit obligation at end of year $ 3,533 $ 3,493 $ 274 $ 253 Projected benefit obligation at beginning of year $ 3,617 $ 1,507 $ 263 $ 113 $ 359 $ 243 National City acquisition (164 ) 2,109 145 (7 ) 105 Other acquisitions 5 3 Service cost 90 44 2 2 4 3 Interest cost 206 86 15 6 21 15 Amendments (43 ) (17 ) 2 Actuarial losses (gains) and changes in assumptions 83 (18 ) 24 2 21 (17 ) FASB ASC 715-60 adoption 29 Participant contributions 14 9 Federal Medicare subsidy on benefits paid

STOCK-BASED COMPENSATION PLANS

STOCK-BASED COMPENSATION PLANS
	12 Months Ended Dec. 31, 2009
STOCK-BASED COMPENSATION PLANS	NOTE 16 STOCK-BASED COMPENSATION PLANS We have long-term incentive award plans (Incentive Plans) that provide for the granting of incentive stock options, nonqualified stock options, stock appreciation rights, incentive shares/performance units, restricted stock, restricted share units, other share-based awards and dollar-denominated awards to executives and, other than incentive stock options, to non-employee directors. Certain Incentive Plan awards may be paid in stock, cash or a combination of stock and cash. We typically grant a substantial portion of our stock-based compensation awards during the first quarter of the year. As of December31, 2009, no stock appreciation rights were outstanding. Total compensation expense recognized related to all share-based payment arrangements during 2009, 2008 and 2007 was approximately $93 million, $71 million and $72 million, respectively. During the third quarter of 2009, we took actions with respect to certain 2009 share-based payment arrangements for some of our executive officers. These actions were taken to address the impact on PNC executive compensation under current TARP rules. Under those TARP rules, a portion of some of our 2009 stock option, restricted stock, and restricted stock unit grants are required to be forfeited, based on the service period for these share-based grants. At its August 2009 meeting, the Personnel and Compensation Committee vested the restricted stock/units granted in respect of 2008 performance bonuses and eliminated all service-based forfeiture provisions from the time-vesting stock options granted in early 2009. The impact of these decisions resulted in approximately $12 million of accelerated expense recognized during the third quarter of 2009, which is included in the $93 million noted above. During the fourth quarter of 2009, we made awards of long-term restricted stock to some of our executive officers designed to comply with the requirements for long-term restricted stock imposed by the Interim Final Rule for TARP Standards for Compensation. We also made long-term stock awards to other employees, including some of our executive officers, not currently subject to the TARP restrictions but who could have become subject to such restrictions in the future. The 2009 expense impact from these stock awards was approximately $9 million, which is included in the $93 million noted above. NONQUALIFIED STOCK OPTIONS Options are granted at exercise prices not less than the market value of common stock on the grant date. Generally, options become exercisable in installments after the grant date. No option may be exercisable after 10 years from its grant date. Payment of the option exercise price may be in cash or shares of common stock at market value on the exercise date. The exercise price may be paid in previously owned shares. Generally, options granted under the Incentive Plans vest ratably over a three-year period as long as the grantee remains an employee or, in certain cases, retires from PNC. For all options granted prior to the adoption of FASB ASC 718, Stock Compensation, we recognized compensation expense over the three-year vesting period. If an em

FINANCIAL DERIVATIVES

FINANCIAL DERIVATIVES
	12 Months Ended Dec. 31, 2009
FINANCIAL DERIVATIVES	NOTE 17 FINANCIAL DERIVATIVES We use a variety of derivative financial instruments to help manage interest rate, market and credit risk and reduce the effects that changes in interest rates may have on net income, fair value of assets and liabilities, and cash flows. These instruments include interest rate swaps, swaptions, interest rate caps and floors, credit default swaps, futures contracts, and total return swaps. All derivatives are carried at fair value. Derivatives Designated in Hedge Relationships We enter into interest rate swaps to hedge the fair value of bank notes, Federal Home Loan Bank borrowings, senior debt and subordinated debt for changes in interest rates. Adjustments related to the ineffective portion of fair value hedging instruments are recorded in interest expense. We enter into interest rate swap contracts to modify the interest rate characteristics of designated commercial loans from variable to fixed in order to reduce the impact of changes in future cash flows due to interest rate changes. We hedged our exposure to the variability of future cash flows for all forecasted transactions for a maximum of 10 years for hedges converting floating-rate commercial loans to fixed. The fair value of these derivatives is reported in other assets or other liabilities and offset in accumulated other comprehensive income (loss) for the effective portion of the derivatives. We subsequently reclassify any unrealized gains or losses related to these swap contracts from accumulated other comprehensive income (loss) into interest income in the same period or periods during which the hedged forecasted transaction affects earnings. Ineffectiveness of the strategies, if any, is recognized immediately in earnings. During the next twelve months, we expect to reclassify to earnings $317 million of pretax net gains, or $206 million after-tax, on cash flow hedge derivatives currently reported in accumulated other comprehensive loss. This amount could differ from amounts actually recognized due to changes in interest rates and the addition of other hedges subsequent to December31, 2009. These net gains are anticipated to result from net cash flows on receive fixed interest rate swaps that would impact interest income recognized on the related floating rate commercial loans. During 2009, there were no gains or losses from cash flow hedge derivatives that were reclassified to earnings arising from the determination that the original forecasted transaction would not occur. The ineffective portion of the change in value of our fair value and cash flow hedge derivatives resulted in net losses of $45 million for 2009 compared to a net gain of $8 million for 2008 and a net loss of $1 million in 2007. Derivatives Not Designated in Hedge Relationships The derivative portfolio also includes free standing derivative financial instruments not included in hedging strategies. These derivatives are entered into for risk management and economic hedge purposes, to meet customer needs, and for proprietary purposes. They primarily consist of interest rate, basis and total rate of return swaps, interest rate caps, floors and futures contracts,

EARNINGS PER SHARE

EARNINGS PER SHARE
	12 Months Ended Dec. 31, 2009
EARNINGS PER SHARE	NOTE 18 EARNINGS PER SHARE The following table sets forth basic and diluted earnings per common share calculations: In millions, except share and per share data 2009 2008 2007 Basic Net income from continuing operations $ 2,358 $ 796 $ 1,363 Less: Net income (loss) attributable to noncontrolling interests (44 ) 32 24 Dividends distributed to common shareholders 428 896 801 Dividends distributed to preferred shareholders 388 21 Dividends distributed to nonvested restricted shares 1 5 5 Preferred stock discount accretion 56 Undistributed net income from continuing operations $ 1,529 $ (158 ) $ 533 Undistributed net income from discontinued operations 45 118 128 Undistributed net income $ 1,574 $ (40 ) $ 661 Percentage of undistributed income allocated to common shares 99.7 % 99.5 % 99.4 % Undistributed income from continuing operations allocated to common shares $ 1,524 $ (158 ) $ 530 Plus common dividends 428 896 801 Net income from continuing operations attributable to basic common shares $ 1,952 $ 738 $ 1,331 Undistributed income from discontinued operations allocated to common shares 45 118 128 Net income attributable to basic common shares $ 1,997 $ 856 $ 1,459 Basic weighted-average common shares outstanding 453,553 343,980 331,300 Basic earnings per common share from continuing operations $ 4.30 $ 2.15 $ 4.02 Basic earnings per common share from discontinued operations .10 .34 .38 Basic earnings per common share $ 4.40 $ 2.49 $ 4.40 Diluted Net income from continuing operations attributable to basic common shares $ 1,952 $ 738 $ 1,331 Less: BlackRock common stock equivalents 15 12 16 Net income from continuing operations attributable to diluted common shares $ 1,937 $ 726 $ 1,315 Net income from discontinued operations attributable to diluted common shares 45 118 128 Net income attributable to diluted common shares $ 1,982 $ 844 $ 1,443 Basic weighted average common shares outstanding 453,553 343,980 331,300 Dilutive potential common shares (a)(b) 1,382 1,867 2,562 Diluted weighted-average common shares outstanding 454,935 345,847 333,862 Diluted earnings per common share from continuing operations $ 4.26 $ 2.10 $ 3.94 Diluted earnings per common share from discontinued operations .10 .34 .38 Diluted earnings per common share $ 4.36 $ 2.44 $ 4.32 (a)Excludes stock options considered to be anti-dilutive (in thousands) 15,303 8,815 4,135 (b)Excludes warrants considered to be anti-dilutive

EQUITY

EQUITY
	12 Months Ended Dec. 31, 2009
EQUITY	NOTE 19 EQUITY Preferred Stock Information related to preferred stock is as follows: Preferred Shares December31 Shares in thousands Liquidation value per share 2009 2008 Authorized $1 par value 16,956 16,960 Issued and outstanding Series A $ 40 6 6 Series B 40 1 1 Series C 20 118 119 Series D 20 168 171 Series K 10,000 50 50 Series L 100,000 2 2 Series N 100,000 76 76 Total issued and outstanding 421 425 On December31, 2008, we issued $7.6 billion of Fixed Rate Cumulative Perpetual Preferred Stock, Series N, to the US Treasury under the US Treasurys Troubled Asset Relief Program (TARP) Capital Purchase Program, together with a warrant to purchase shares of common stock of PNC described below. We paid dividends totaling $332 million on this preferred stock in 2009. See Note 28 Subsequent Events regarding our February 2010 redemption of this preferred stock. As part of the National City transaction, we issued 9.875% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series L in exchange for National Citys Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series F. Dividends are payable if and when declared each 1 st of February, May, August and November. Dividends will be paid at a rate of 9.875% prior to February1, 2013 and at a rate of three-month LIBOR plus 633 basis points beginning February1, 2013. The Series L is redeemable at PNCs option, subject to a replacement capital covenant for the first ten years after issuance and subject to Federal Reserve approval, if then applicable, on or after February1, 2013 at a redemption price per share equal to the liquidation preference plus any declared but unpaid dividends. Also as part of the National City transaction, we established the PNC Non-Cumulative Perpetual Preferred Stock, Series M, which mirrors in all material respects the former National City Non-Cumulative Perpetual Preferred Stock, Series E. PNC has designated 5,751 preferred shares, liquidation value $100,000 per share, for this series. No shares have yet been issued; however, National City issued stock purchase contracts for 5,001 shares of its Series E Preferred Stock (now replaced by the PNC Series M as part of the National City transaction) to the National City Preferred Capital Trust I in connection with the issuance by that Trust of $500 million of 12.000% Fixed-to-Floating Rate Normal Automatic Preferred Enhanced Capital Securities (the Normal APEX Securities) in January 2008 by the Trust. It is expected that the Trust will purchase 5,001 of the Series M preferred shares pursuant to these stock purchase contracts on December10, 2012 or on an earlier date and possibly as late as December10, 2013. The Trust has pledged the $500,100,000 principal amount of National City 8.729% Junior Subordinated Notes due 2043 held by the Trust and their proceeds to secure this purchase obligation. If Series M shares are issued prior to December10, 2012, any dividends on such shares will be calculated at a rate per annum equal to

OTHER COMPREHENSIVE INCOME

OTHER COMPREHENSIVE INCOME
	12 Months Ended Dec. 31, 2009
OTHER COMPREHENSIVE INCOME	NOTE 20 OTHER COMPREHENSIVE INCOME Details of other comprehensive income (loss) are as follows (in millions): Pretax Tax After-tax Net unrealized securities gains (losses) and net OTTI losses on debt securities Balance at January1, 2007 $ (91 ) 2007 activity Increase in net unrealized gain for securities held at year-end $ (134 ) $ 52 (82 ) Less: net losses realized in net income (a) (9 ) 3 (6 ) Net unrealized securities gains (125 ) 49 (76 ) Balance at December31, 2007 (167 ) 2008 activity Increase in net unrealized losses for securities held at year-end (5,423 ) 1,992 (3,431 ) Less: net losses realized in net income (a) 44 (16 ) 28 Net unrealized securities losses (5,467 ) 2,008 (3,459 ) Balance at December31, 2008 (3,626 ) 2009 activity Decrease in net unrealized losses for securities held at year-end 4,692 (1,721 ) 2,971 Less: net gains realized in net income (a) 167 (62 ) 105 Net unrealized securities gains 4,525 (1,659 ) 2,866 Cumulative effect of adopting FASB ASC 320-10 (174 ) 64 (110 ) Net increase in OTTI losses on debt securities (1,122 ) 416 (706 ) Net OTTI losses on debt securities (1,296 ) 480 (816 ) Balance at December31, 2009 $ (1,576 ) (a) Pretax amounts represent net unrealized gains (losses) as of the prior year-end date that were realized in the subsequent year when the related securities were sold. These amounts differ from net securities losses included on the Consolidated Income Statement primarily because they do not include gains or losses realized on securities that were purchased and then sold during the same year. Pretax Tax After-tax Net unrealized gains (losses) on cash flow hedge derivatives Balance at January1, 2007 $ (13 ) 2007 activity Increase in net unrealized gains on cash flow hedge derivatives $ 283 $ (104 ) 179 Less: net gains realized in net income (14 ) 5 (9 ) Net unrealized gains on cash flow hedge derivatives 297 (109 ) 188 Balance at December31, 2007 175 2008 activity Increase in net unrealized gains on cash flow hedge derivatives 344 (127 ) 217 Less: net gains realized in net income 29 (11 ) 18 Net unrealized gains on cash flow hedge derivatives 315 (116 ) 199 Balance at December31, 2008 374 2009 activity Decrease in net unrealized gains on cash flow hedge derivatives (178 ) 66 (112 ) Less: net gains realized in net income 151 (55 ) 96 Net unrealized losses on cash flow hedge derivatives

INCOME TAXES

INCOME TAXES
	12 Months Ended Dec. 31, 2009
INCOME TAXES	NOTE 21 INCOME TAXES The components of income taxes from continuing operations are as follows: Year ended December31 In millions 2009 2008 2007 Current Federal $ (109 ) $ 473 $ 409 State 46 61 52 Total current (63 ) 534 461 Deferred Federal 912 (211 ) 82 State 18 (25 ) 18 Total deferred 930 (236 ) 100 Total $ 867 $ 298 $ 561 Significant components of deferred tax assets and liabilities are as follows: December31 - in millions 2009 2008 Deferred tax assets Allowance for loan and lease losses $ 1,978 $ 1,564 Net unrealized securities losses 922 2,121 Compensation and benefits 788 813 Unrealized losses on loans 1,349 1,825 Loss and credit carryforward 816 269 Other 1,287 1,672 Total gross deferred tax assets 7,140 8,264 Valuation allowance (31 ) (23 ) Total deferred tax assets 7,109 8,241 Deferred tax liabilities Leasing 1,191 1,292 Goodwill and Intangibles 619 636 Mortgage servicing rights 618 332 BlackRock basis difference 1,850 1,265 Other 1,124 968 Total deferred tax liabilities 5,402 4,493 Net deferred asset $ 1,707 $ 3,748 A reconciliation between the statutory and effective tax rates follows: Year ended December31 2009 2008 2007 Statutory tax rate 35.0 % 35.0 % 35.0 % Increases (decreases) resulting from State taxes net of federal benefit 1.2 2.3 2.3 Tax-exempt interest (1.2 ) (1.9 ) (.9 ) Life insurance (1.9 ) (2.6 ) (1.8 ) Dividend received deduction (1.2 ) (3.5 ) (1.7 ) Tax credits (5.4 ) (4.8 ) (3.2 ) Tax gain on sale of Hilliard Lyons 4.7 Other .4 (2.0 ) (.5 ) Effective tax rate 26.9 % 27.2 % 29.2 % At December31, 2009 and 2008, we had available $1.2 billion and $124 million, respectively, of federal and $2.0 billion and $1.7 billion, respectively, of state income tax net operating loss carryforwards. At December31, 2009 and 2008, a valuation allowance of $31 million and $23 million, respectively, was recorded against the deferred tax asset associated with the state income tax net operating losses. The net operating loss carryforwards will expire from 2010 through 2029. At December31, 2009 and 2008, we had available $254 million and $119 million, respectively, of federal and $4 million and $4 million, respectively, of state tax credit carryforwards. The tax credit carryforwards will expire from 2010 through 2029. At December31, 2009, a deferred tax liability of $18 million has been provided on the difference in the stock investment and tax basis of GIS, a US subsidiary, since PNC can no longer recover this investment in a tax-free manner. At Dec

SUMMARIZED FINANCIAL INFORMATIO

SUMMARIZED FINANCIAL INFORMATION OF BLACKROCK
	12 Months Ended Dec. 31, 2009
SUMMARIZED FINANCIAL INFORMATION OF BLACKROCK	NOTE 22 SUMMARIZED FINANCIAL INFORMATION OF BLACKROCK As required by SEC Regulation S-X, summarized consolidated financial information of BlackRock follows (in millions). December31 2009 2008 Total assets $ 177,994 $ 19,924 Total liabilities 153,392 7,364 Non-controlling interests 273 491 Stockholders equity 24,329 12,069 Total liabilities, non-controlling interests and stockholders equity $ 177,994 $ 19,924 Year ended December31 2009 2008 2007 Total revenue $ 4,700 $ 5,064 $ 4,845 Total expenses 3,422 3,471 3,551 Operating income 1,278 1,593 1,294 Non-operating income (expense) (6 ) (577 ) 526 Income before income taxes 1,272 1,016 1,820 Income tax expense 375 387 463 Net income 897 629 1,357 Less: net income (loss) attributable to non-controlling interests 22 (155 ) 364 Net income attributable to BlackRock $ 875 $ 784 $ 993

REGULATORY MATTERS

REGULATORY MATTERS
	12 Months Ended Dec. 31, 2009
REGULATORY MATTERS	NOTE 23 REGULATORY MATTERS We are subject to the regulations of certain federal and state agencies and undergo periodic examinations by such regulatory authorities. The access to and cost of funding new business initiatives including acquisitions, the ability to pay dividends, the level of deposit insurance costs, and the level and nature of regulatory oversight depend, in large part, on a financial institutions capital strength. The minimum US regulatory capital ratios are 4% for tier 1 risk-based, 8% for total risk-based and 4% for leverage. To qualify as well capitalized, regulators require banks to maintain capital ratios of at least 6% for tier 1 risk-based, 10% for total risk-based and 5% for leverage. At December31, 2009 and December31, 2008, PNC Bank, N.A. met the well capitalized capital ratio requirements. The following table sets forth regulatory capital ratios for PNC and its bank subsidiary, PNC Bank, N.A. Regulatory Capital Amount Ratios December31 Dollars in millions 2009 2008 2009 2008 Risk-based capital Tier 1 PNC $ 26,523 $ 24,287 11.4 % 9.7 % PNC Bank, N.A. 24,491 8,338 10.9 7.1 Total PNC 34,813 33,116 15.0 13.2 PNC Bank, N.A. 32,481 12,104 14.4 10.3 Leverage PNC NM NM 10.1 17.5 PNC Bank, N.A. NM NM 9.3 6.3 NM Not meaningful. The principal source of parent company cash flow is the dividends it receives from its subsidiary bank, which may be impacted by the following: Capital needs, Laws and regulations, Corporate policies, Contractual restrictions, and Other factors. Also, there are statutory and regulatory limitations on the ability of national banks to pay dividends or make other capital distributions. The amount available for dividend payments to the parent company by PNC Bank, N.A. without prior regulatory approval was approximately $378 million at December31, 2009. Under federal law, a bank subsidiary generally may not extend credit to the parent company or its non-bank subsidiaries on terms and under circumstances that are not substantially the same as comparable extensions of credit to nonaffiliates. No extension of credit may be made to the parent company or a non-bank subsidiary which is in excess of 10% of the capital stock and surplus of such bank subsidiary or in excess of 20% of the capital and surplus of such bank subsidiary as to aggregate extensions of credit to the parent company and its non-bank subsidiaries. Such extensions of credit, with limited exceptions, must be fully collateralized by certain specified assets. In certain circumstances, federal regulatory authorities may impose more restrictive limitations. Federal Reserve Board regulations require depository institutions to maintain cash reserves with the Federal Reserve Bank (FRB). At December31, 2009, the balance outstanding at the FRB was $38 million.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS
	12 Months Ended Dec. 31, 2009
LEGAL PROCEEDINGS	NOTE 24 LEGAL PROCEEDINGS National City Matters In December 2008, we completed the acquisition of National City through the merger of National City into The PNC Financial Services Group, Inc. As a result, we are now responsible for litigation and other claims pending against National City and its subsidiaries at that time. We are also responsible for litigation and other claims arising out of the conduct of the business of National City and its subsidiaries before the acquisition that have been or will be in the future brought against us. The lawsuits and other matters described below arise from National Citys business prior to the merger. We may be responsible for indemnifying individual defendants in these lawsuits and other matters. See also National City Acquisition-Related Litigation below for information regarding litigation filed against PNC and National City relating to the merger and Regulatory and Governmental Inquiries for information regarding regulatory matters with respect to National City. Visa. Beginning in June 2005, a series of antitrust lawsuits were filed against Visa, MasterCard, and several major financial institutions, including cases naming National City (since merged into PNC) and its subsidiary, National City Bank of Kentucky, since merged into National City Bank. The cases have been consolidated for pretrial proceedings in the United States District Court for the Eastern District of New York. Those cases naming National City were brought as class actions on behalf of all persons or business entities who have accepted Visa or Master Card. The plaintiffs, merchants operating commercial businesses throughout the US and trade associations, allege that the defendants conspired to fix the prices for general purpose card network services, resulting in the payment of inflated interchange fees, in violation of the antitrust laws. In January 2009, the plaintiffs filed amended and supplemental complaints adding, among other things, allegations that the restructuring of Visa and MasterCard, each of which included an initial public offering, violated the antitrust laws. The plaintiffs seek injunctive relief, actual and treble damages and attorneys fees. On January8, 2008, the district court dismissed plaintiffs claims for damages incurred prior to January1, 2004. In April 2009, the defendants filed a motion to dismiss the amended and supplemental complaints. National City and National City Bank entered into judgment and loss sharing agreements with Visa and certain other banks with respect to all of the above referenced litigation. All of this litigation against Visa is also subject to the indemnification obligations described in Note 25 Commitments and Guarantees. PNC Bank, N.A. is not named a defendant in any of the Visa or MasterCard related antitrust litigation nor was it initially a party to the judgment or loss sharing agreements, but it has been subject to these indemnification obligations and became responsible for National City Banks position in the litigation and under the agreements upon completion of the merger of National City Bank into PNC Bank, N.A. Merrill Lynch. In December2006, National City Bank

COMMITMENTS AND GUARANTEES

COMMITMENTS AND GUARANTEES
	12 Months Ended Dec. 31, 2009
COMMITMENTS AND GUARANTEES	NOTE 25 COMMITMENTS AND GUARANTEES EQUITY FUNDING AND OTHER COMMITMENTS Our unfunded commitments at December31, 2009 included private equity investments of $453 million and other investments of $66 million. STANDBY LETTERS OF CREDIT We issue standby letters of credit and have risk participations in standby letters of credit and bankers acceptances issued by other financial institutions, in each case to support obligations of our customers to third parties, such as remarketing programs for customers variable rate demand notes. Net outstanding standby letters of credit totaled $10.0 billion at December31, 2009 and $10.3 billion at December31, 2008. Based on PNCs internal risk rating process for standby letters of credit as of December31, 2009, 86% of the net outstanding balance had internal credit ratings of pass, indicating the expected risk of loss is currently low compared to 88% as of December31, 2008, while 14% of the net outstanding balance as of December31, 2009 had internal risk ratings below pass, indicating a higher degree of risk of default compared to 12% as of December31, 2008. If the customer fails to meet its financial or performance obligation to the third party under the terms of the contract or there is a need to support a remarketing program, then upon the request of the guaranteed party, we would be obligated to make payment to them. The standby letters of credit and risk participations in standby letters of credit and bankers acceptances outstanding on December31, 2009 had terms ranging from less than 1 year to 9 years. The aggregate maximum amount of future payments PNC could be required to make under outstanding standby letters of credit and risk participations in standby letters of credit and bankers acceptances was $13.1 billion at December31, 2009, of which $6.1 billion support remarketing programs. As of December31, 2009, assets of approximately $1.0 billion secured certain specifically identified standby letters of credit. Approximately $3.1 billion in recourse provisions from third parties was also available for this purpose as of December31, 2009. In addition, a portion of the remaining standby letters of credit and letter of credit risk participations issued on behalf of specific customers is also secured by collateral or guarantees that secure the customers other obligations to us. The carrying amount of the liability for our obligations related to standby letters of credit and risk participations in standby letters of credit and bankers acceptances was $270 million at December31, 2009. STANDBY BOND PURCHASE AGREEMENTS AND OTHER LIQUIDITY FACILITIES We enter into standby bond purchase agreements to support municipal bond obligations. At December31, 2009, the aggregate of our commitments under these facilities was $476 million. We also enter into certain other liquidity facilities to support individual pools of receivables acquired by commercial paper conduits including Market Street. At December31, 2009, our total commitments under these facilities were $5.7 billion, of which $5.6 billion was related to Market Street. INDEMNIFICATIONS We are a party to numerous acquisition or divestiture ag

PARENT COMPANY

PARENT COMPANY
	12 Months Ended Dec. 31, 2009
PARENT COMPANY	NOTE 26 PARENT COMPANY Summarized financial information of the parent company is as follows: Income Statement Year ended December31 - in millions 2009(a) 2008 2007 OPERATING REVENUE Dividends from: Bank subsidiaries and bank holding company $ 839 $ 1,012 $ 1,078 Non-bank subsidiaries 84 168 74 Interest income 12 4 15 Nononinterest income 28 18 23 Total operating revenue 963 1,202 1,190 OPERATING EXPENSE Interest expense 495 152 160 Other expense 21 46 84 Total operating expense 516 198 244 Income before income taxes and equity in undistributed net income of subsidiaries 447 1,004 946 Income tax benefits (147 ) (50 ) (78 ) Income before equity in undistributed net income of subsidiaries 594 1,054 1,024 Equity in undistributed net income of subsidiaries: Bank subsidiaries and bank holding company 1,736 (125 ) 229 Non-bank subsidiaries 117 (47 ) 214 Net income $ 2,447 $ 882 $ 1,467 Balance Sheet December31 - in millions 2009 2008 (a) ASSETS Cash and due from banks $ 104 $ 15 Interest-earning deposits with banks 95 140 Investment securities 164 Loans (b) 2,275 Investments in: Bank subsidiaries and bank holding company 32,966 27,960 Non-bank subsidiaries 2,650 2,378 Other assets 1,287 1,821 Total assets $ 37,102 $ 34,753 LIABILITIES Subordinated debt $ 3,859 $ 4,122 Senior debt 2,018 2,707 Other borrowed funds 2 Bank affiliate borrowings 92 Non-bank affiliate borrowings 945 Accrued expenses and other liabilities 1,191 1,554 Total liabilities 7,160 9,330 EQUITY Shareholders equity 29,942 25,422 Noncontrolling interests 1 Total equity 29,942 25,423 Total liabilities and equity $ 37,102 $ 34,753 (a) Includes the impact of National City. (b) Balance represents National City loans with subsidiaries Commercial paper and all other debt issued by PNC Funding Corp, a wholly owned finance subsidiary, is fully and unconditionally guaranteed by the parent company. In addition, in connection with certain affiliates commercial and residential mortgage servicing operations, the parent company has committed to maintain such affiliates net worth above minimum requirements. The parent company received net income tax refunds of $137 million in 2009, $92 million in 2008 and $65 million in 2007. Such refunds represent the parent companys portion of consolidated income taxes. The parent company paid interest of $427 million in 2009, $147 million in 2008 and $146 million in 2007. Statement Of Cash Flows Year e

SEGMENT REPORTING

SEGMENT REPORTING
	12 Months Ended Dec. 31, 2009
SEGMENT REPORTING	NOTE 27 SEGMENT REPORTING In the first quarter of 2009, we made changes to our business organization structure and management reporting in conjunction with the acquisition of National City. Business segment results for 2008 and 2007 have been reclassified to reflect current methodologies and current business and management structure and to present those periods on the same basis as 2009. As a result of its pending sale, GIS is no longer a reportable business segment. Results of individual businesses are presented based on our management accounting practices and management structure. There is no comprehensive, authoritative body of guidance for management accounting equivalent to GAAP; therefore, the financial results of our individual businesses are not necessarily comparable with similar information for any other company. We refine our methodologies from time to time as our management accounting practices are enhanced and our businesses and management structure change. Financial results are presented, to the extent practicable, as if each business operated on a stand-alone basis. As permitted under GAAP, we have aggregated the business results for certain similar operating segments for financial reporting purposes. Assets receive a funding charge and liabilities and capital receive a funding credit based on a transfer pricing methodology that incorporates product maturities, duration and other factors. Capital is intended to cover unexpected losses and is assigned to the banking and servicing businesses using our risk-based economic capital model. We have assigned capital to Retail Banking equal to 6% of funds to approximate market comparables for this business. We have allocated the allowances for loan and lease losses and unfunded loan commitments and letters of credit based on our assessment of risk inherent in each business segments loan portfolio. Our allocation of the costs incurred by operations and other shared support areas not directly aligned with the businesses is primarily based on the use of services. Total business segment financial results differ from consolidated income from continuing operations. The impact of these differences is reflected in the Other category in the business segment tables. Other includes residual activities that do not meet the criteria for disclosure as a separate reportable business, including LTIP share distributions and obligations, earnings and gains related to Hilliard Lyons for the first quarter of 2008, integration costs, asset and liability management activities including net securities gains or losses and certain trading activities, exited businesses, equity management activities, alternative investments, intercompany eliminations, most corporate overhead, and differences between business segment performance reporting and financial statement reporting (GAAP), including the presentation of net income attributable to noncontrolling interests. Assets, revenue and earnings attributable to foreign activities were not material in the periods presented for comparative purposes. BUSINESS SEGMENT PRODUCTS AND SERVICES Retail Banking provides deposit, lending, brokerage, trust, i

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS
	12 Months Ended Dec. 31, 2009
SUBSEQUENT EVENTS	NOTE 28 SUBSEQUENT EVENTS See Note 2 Acquisitions and Divestitures regarding our pending sale of GIS. COMMON STOCK AND SENIOR NOTES OFFERINGS On February8, 2010, we raised $3.0 billion in new common equity through the issuance of 55.6million shares of common stock in an underwritten offering at $54 per share. On March4, 2010, the underwriters exercised their option to purchase an additional 8.3 million shares of common stock at the offering price of $54 per share, totaling approximately $450 million, to cover over-allotments. We expect to complete this issuance on March 11, 2010. On February8, 2010, PNC Funding Corp issued the following securities: $1 billion of senior notes due February 2015; interest will be paid semiannually at a fixed rate of 3.625%. $1 billion of senior notes due February 2020; interest will be paid semiannually at a fixed rate of 5.125%. REPURCHASE OF OUTSTANDING TARP PREFERRED STOCK See Note 19 Equity regarding our December31, 2008, issuance of 75,792 shares of our Fixed Rate Cumulative Perpetual Preferred Shares, Series N (Series N Preferred Stock), related issuance discount and the warrant to purchase common shares to the US Treasury under the TARP Capital Purchase Program. As approved by the Federal Reserve Board, US Treasury and our other banking regulators, on February10, 2010, we redeemed all 75,792 shares of our Series N Preferred Stock held by the US Treasury totaling $7.6 billion. We used the net proceeds from the common stock and senior notes offerings described above and other funds to redeem the Series N Preferred Stock. In connection with the redemption of the Series N Preferred Stock, we accelerated the accretion of the remaining issuance discount on the Series N Preferred Stock and recorded a corresponding reduction in retained earnings of $250.0 million. This resulted in a one-time, noncash reduction in net income available to common stockholders and related basic and diluted earnings per share. This transaction will be reflected in our consolidated financial statements for the first quarter of 2010. Dividends of $89 million were paid on February10, 2010 when the Series N Preferred Stock was redeemed. PNC paid total dividends of $421 million to the US Treasury while the Series N preferred shares were outstanding. We did not exercise our right to seek to repurchase the related warrant to purchase common shares at the time we redeemed the Series N Preferred Stock.

Document Information

Document Information
	12 Months Ended Dec. 31, 2009
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Feb. 26, 2010	Jun. 30, 2009
Trading Symbol	PNC
Entity Registrant Name	PNC FINANCIAL SERVICES GROUP INC
Entity Central Index Key	0000713676
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		517,408,663
Entity Public Float			$17,800,000,000