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174.86 Td (59) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.30 174.86 Td (14, 1) Tj ET Q q 0 0 0 rg BT 546.97 174.86 Td (15) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 155.00 161.86 Td (V) Tj ET Q q 0 0 0 rg BT 161.00 161.86 Td (alue at Risk \(V) Tj ET Q q 0 0 0 rg BT 214.24 161.86 Td (aR\) Models) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 161.86 Td (13) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 155.00 148.86 Td (T) Tj ET Q q 0 0 0 rg BT 160.18 148.86 Td (able 9: ) Tj ET Q q 0 0 0 rg BT 186.28 148.86 Td (V) Tj ET Q q 0 0 0 rg BT 192.20 148.86 Td (aR-Based Metrics) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 148.86 Td (14) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 155.00 135.86 Td (Back ) Tj ET Q q 0 0 0 rg BT 175.66 135.86 Td (T) Tj ET Q q 0 0 0 rg BT 180.76 135.86 Td (esting) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 135.86 Td (14) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 155.00 122.86 Td (Model ) Tj ET Q q 0 0 0 rg BT 180.67 122.86 Td (V) Tj ET Q q 0 0 0 rg BT 186.59 122.86 Td (alidation) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 122.86 Td (15) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 155.00 109.86 Td (Stress ) Tj ET Q q 0 0 0 rg BT 178.67 109.86 Td (T) Tj ET Q q 0 0 0 rg BT 183.77 109.86 Td (esting) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 109.86 Td (15) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 155.00 96.86 Td (Securitization Positions) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 96.86 Td (15) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 55.00 84.00 Td (Inter) Tj ET Q q 0 0 0 rg BT 74.41 84.00 Td (est Rate Risk for) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 55.00 75.00 Td (Non-T) Tj ET Q q 0 0 0 rg BT 79.67 75.00 Td (rading ) Tj ET Q q 0 0 0 rg BT 106.84 75.00 Td (Activities) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 404.00 84.00 Td (15) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.00 83.86 Td (33) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 547.00 83.86 Td (70) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 55.00 62.00 Td (Glossary of ) Tj ET Q q 0 0 0 rg BT 100.83 62.00 Td (T) Tj ET Q q 0 0 0 rg BT 106.01 62.00 Td (erms) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 404.00 62.00 Td (15) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 547.00 61.86 Td (78) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 7 0 obj <> endobj 8 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 772.60 Td ( ) Tj ET Q q 0 0 0 rg BT 84.50 772.60 Td ( PNC Pillar 3 Standardized Disclosures as of September 30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 748.80 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 24.60 Td (3) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 36.00 747.90 Td (INTRODUCTION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 723.90 Td (The PNC Financial Services Group, Inc. \(PNC\) is one of the lar) Tj ET Q q 0 0 0 rg BT 291.04 723.90 Td (gest diversified financial services companies in the United States and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 711.90 Td (is headquartered in Pittsbur) Tj ET Q q 0 0 0 rg BT 145.52 711.90 Td (gh, Pennsylvania. PNC has businesses engaged in retail banking, including residential mortgage, corporate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 699.90 Td (and institutional banking and asset management, providing many of its products and services nationally) Tj ET Q q 0 0 0 rg BT 449.71 699.90 Td (. Our retail branch network is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 687.90 Td (located in markets across the Mid-Atlantic, Midwest and Southeast. ) Tj ET Q q 0 0 0 rg BT 309.37 687.90 Td (W) Tj ET Q q 0 0 0 rg BT 318.01 687.90 Td (e also have strategic international of) Tj ET Q q 0 0 0 rg BT 462.49 687.90 Td (fices in four countries ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 675.90 Td (outside the U.S. ) Tj ET Q q 0 0 0 rg BT 101.83 675.90 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.33 675.90 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.60 675.90 Td (, consolidated total assets, total deposits and total shareholders) Tj ET Q q 0 0 0 rg BT 447.13 675.90 Td ( equity were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.06 675.90 Td ($408.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.56 675.90 Td ( billion, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 663.90 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 41.00 663.90 Td (285.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 663.90 Td ( billion and $) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.55 663.90 Td (49.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.05 663.90 Td ( billion, respectively) Tj ET Q q 0 0 0 rg BT 215.33 663.90 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 639.90 Td (PNC is a bank holding company registered under the Bank Holding Company ) Tj ET Q q 0 0 0 rg BT 349.84 639.90 Td (Act of 1956 and a financial holding company under the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 627.90 Td (Gramm-Leach-Bliley ) Tj ET Q q 0 0 0 rg BT 124.02 627.90 Td (Act. PNC provides its products and services primarily through PNC) Tj ET Q q 0 0 0 rg BT 398.44 627.90 Td (s only insured depository institution ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 615.90 Td (subsidiary) Tj ET Q q 0 0 0 rg BT 76.46 615.90 Td (, PNC Bank, National ) Tj ET Q q 0 0 0 rg BT 165.90 615.90 Td (Association \(PNC Bank\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 591.90 Td (This report \(Pillar 3 Report\) provides information about PNC) Tj ET Q q 0 0 0 rg BT 284.30 591.90 Td (s capital structure, risk exposures, risk assessment processes, risk-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 579.90 Td (weighted assets and overall capital adequacy and should be read in conjunction with PNC) Tj ET Q q 0 0 0 rg BT 397.85 579.90 Td (s Securities and Exchange Commission ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 567.90 Td (\(SEC\) filings, including the ) Tj ET Q q 0 0 0 rg BT 148.50 567.90 Td (Annual Report on Form 10-K for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.83 567.90 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.42 567.90 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.25 567.90 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.25 567.90 Td ( Form 10-K\) and Quarterly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 555.90 Td (Report on Form 10-Q for the period ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.74 555.90 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.00 555.90 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.83 555.90 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.10 555.90 Td ( Form 10-Q\). ) Tj ET Q q 0 0 0 rg BT 430.47 555.90 Td (These SEC filings are available at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 543.90 Td (www) Tj ET Q q 0 0 0 rg BT 57.02 543.90 Td (.pnc.com/secfilings. ) Tj ET Q q 0 0 0 rg BT 139.59 543.90 Td (The Pillar 3 Report and other regulatory disclosures, including PNC Bank) Tj ET Q q 0 0 0 rg BT 438.15 543.90 Td (s Call Report, are available at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 531.90 Td (http://www) Tj ET Q q 0 0 0 rg BT 80.91 531.90 Td (.pnc.com/regulatorydisclosures.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 36.00 507.90 Td (Forward-Looking Statements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 483.90 Td (Certain statements in this Pillar 3 Report are forward-looking statements, which are subject to numerous assumptions, risks and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 471.90 Td (uncertainties, which change over time. Forward-looking statements speak only as of the date made. ) Tj ET Q q 0 0 0 rg BT 435.42 471.90 Td (W) Tj ET Q q 0 0 0 rg BT 444.06 471.90 Td (e do not assume any duty and do ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 459.90 Td (not undertake to update forward-looking statements. ) Tj ET Q q 0 0 0 rg BT 247.33 459.90 Td (Actual results or future events could dif) Tj ET Q q 0 0 0 rg BT 406.00 459.90 Td (fer) Tj ET Q q 0 0 0 rg BT 416.69 459.90 Td (, possibly materially) Tj ET Q q 0 0 0 rg BT 497.42 459.90 Td (, from those ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 447.90 Td (anticipated in forward-looking statements, as well as from historical performance. See the Cautionary Statement Regarding Forward-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 435.90 Td (Looking Information in PNC) Tj ET Q q 0 0 0 rg BT 155.16 435.90 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.55 435.90 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.82 435.90 Td ( Form 10-Q for more information. ) Tj ET Q q 0 0 0 rg BT 380.40 435.90 Td (Also see all risks and uncertainties disclosed in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 423.90 Td (PNC) Tj ET Q q 0 0 0 rg BT 58.23 423.90 Td (s SEC filings, including its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.24 423.90 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.24 423.90 Td ( Form 10-K, and subsequent reports on Forms 10-K, 10-Q and 8-K, Proxy Statements on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 411.90 Td (Schedule 14A, and, if applicable, its registration statements under the Securities ) Tj ET Q q 0 0 0 rg BT 357.58 411.90 Td (Act of 1933, as amended, all of which are or will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 399.90 Td (upon filing be accessible on PNC) Tj ET Q q 0 0 0 rg BT 172.37 399.90 Td (s website at www) Tj ET Q q 0 0 0 rg BT 242.54 399.90 Td (.pnc.com/secfilings and on the SEC) Tj ET Q q 0 0 0 rg BT 388.07 399.90 Td (s website at www) Tj ET Q q 0 0 0 rg BT 458.24 399.90 Td (.sec.gov) Tj ET Q q 0 0 0 rg BT 490.36 399.90 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 36.00 375.90 Td (Basis of Consolidation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 351.90 Td (Our consolidated financial statements include the accounts of the parent company and its subsidiaries, most of which are wholly-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 339.90 Td (owned, certain partnership interests and variable interest entities that are required to be consolidated under accounting principles ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 327.90 Td (generally accepted in the United States of ) Tj ET Q q 0 0 0 rg BT 204.55 327.90 Td (America \(GAAP\). ) Tj ET Q q 0 0 0 rg BT 280.18 327.90 Td (W) Tj ET Q q 0 0 0 rg BT 288.82 327.90 Td (e have eliminated intercompany accounts and transactions. ) Tj ET Q q 0 0 0 rg BT 526.33 327.90 Td (The basis ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 315.90 Td (for consolidation for regulatory capital calculations is the same as that used in the presentation of PNC) Tj ET Q q 0 0 0 rg BT 449.22 315.90 Td (s consolidated financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 303.90 Td (statements, which is described in further detail in Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.05 303.90 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.05 303.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.00 303.90 Td (Accounting Policies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.82 303.90 Td ( of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.98 303.90 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.98 303.90 Td ( Form 10-K. Consistent with the regulatory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 291.90 Td (capital rules, the minimum capital requirement for our consolidated insurance underwriting subsidiaries under applicable law is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 279.90 Td (deducted from our regulatory capital. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 36.00 255.90 Td (Basel III Overview) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 231.90 Td (PNC and PNC Bank are subject to the regulatory capital requirements established by the Board of Governors of the Federal Reserve) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 219.90 Td (System \(Federal Reserve\) and the Of) Tj ET Q q 0 0 0 rg BT 183.83 219.90 Td (fice of the Comptroller of the Currency \(OCC\), respectively) Tj ET Q q 0 0 0 rg BT 423.38 219.90 Td (. In July 2013, the U.S. banking) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 207.90 Td (agencies adopted rules to implement the new international regulatory capital standards established by the Basel Committee on) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 195.90 Td (Banking Supervision \(Basel Committee\), known as Basel III, as well as to implement certain provisions of Dodd-Frank. Many) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 183.90 Td (provisions are phased-in over a period of years, with the rules generally fully phased-in as of January 1, 2019. ) Tj ET Q q 0 0 0 rg BT 477.91 183.90 Td (The rules adopted in) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 171.90 Td (July 2013 generally have three fundamental parts.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 147.90 Td (The first part, referred to as the Basel III capital rule, among other things, narrowed the definition of regulatory capital, requires) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 135.90 Td (banking or) Tj ET Q q 0 0 0 rg BT 78.87 135.90 Td (ganizations with $15 billion or more in assets \(including PNC\) to phase-out trust preferred securities from ) Tj ET Q q 0 0 0 rg BT 505.26 135.90 Td (T) Tj ET Q q 0 0 0 rg BT 511.02 135.90 Td (ier 1 regulatory) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 123.90 Td (capital, establishes a new common equity ) Tj ET Q q 0 0 0 rg BT 204.38 123.90 Td (T) Tj ET Q q 0 0 0 rg BT 210.14 123.90 Td (ier 1 \(CET1\) capital regulatory requirement for banking or) Tj ET Q q 0 0 0 rg BT 444.32 123.90 Td (ganizations, and revises the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 111.90 Td (capital levels at which PNC and PNC Bank would be subject to prompt corrective action. ) Tj ET Q q 0 0 0 rg BT 395.74 111.90 Td (The Basel III capital rule became ef) Tj ET Q q 0 0 0 rg BT 538.81 111.90 Td (fective) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 99.90 Td (on January 1, 2014 for PNC and PNC Bank, although many provisions are phased-in over a period of years.) Tj ET Q endstream endobj 9 0 obj <> endobj 10 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 772.60 Td ( ) Tj ET Q q 0 0 0 rg BT 84.50 772.60 Td ( PNC Pillar 3 Standardized Disclosures as of September 30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 748.80 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 24.60 Td (4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 749.10 Td (The second major part of the rules adopted in July 2013 is referred to as the standardized approach and materially revises the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 737.10 Td (framework for the risk-weighting of assets under Basel I. ) Tj ET Q q 0 0 0 rg BT 266.86 737.10 Td (The standardized approach for risk-weighted assets takes into account credit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 725.10 Td (and market risk. Under the standardized approach for credit risk, the nominal dollar amounts of assets and credit equivalent amounts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 713.10 Td (of of) Tj ET Q q 0 0 0 rg BT 54.98 713.10 Td (f-balance sheet items are generally multiplied by one of several risk adjustment percentages set forth in the rules and that increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 701.10 Td (as the perceived credit risk of the relevant asset increases. For certain types of exposures, such as securitization exposures, the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 689.10 Td (standardized approach establishes one or more methodologies that are to be used to calculate the risk-weighted asset amount for the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 677.10 Td (exposure. ) Tj ET Q q 0 0 0 rg BT 76.92 677.10 Td (The standardized approach took ef) Tj ET Q q 0 0 0 rg BT 215.01 677.10 Td (fect on January 1, 2015.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 653.10 Td (The third part of the rules adopted in July 2013 is referred to as the advanced approaches and materially revises the framework for the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 641.10 Td (risk-weighting of assets under Basel II. ) Tj ET Q q 0 0 0 rg BT 194.95 641.10 Td (The Basel II framework, which was adopted by the Basel Committee in 2004, seeks to provide) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 629.10 Td (more risk-sensitive regulatory capital calculations and promote enhanced risk management practices among lar) Tj ET Q q 0 0 0 rg BT 480.10 629.10 Td (ge, internationally) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 617.10 Td (active banking or) Tj ET Q q 0 0 0 rg BT 105.24 617.10 Td (ganizations. Prior to fully implementing the advanced approaches to calculate risk-weighted assets, PNC and PNC) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 605.10 Td (Bank must successfully complete a parallel run qualification phase. PNC and PNC Bank entered this parallel run qualification phase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 593.10 Td (on January 1, 2013.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 569.10 Td (The risk-based capital rules that the federal banking regulators have adopted require the capital-to-assets ratios of banking ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 557.10 Td (or) Tj ET Q q 0 0 0 rg BT 44.15 557.10 Td (ganizations, including PNC and PNC Bank, to meet certain minimum standards. ) Tj ET Q q 0 0 0 rg BT 367.81 557.10 Td (The Basel III rule generally divides regulatory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 545.10 Td (capital into three components: CET1 capital, additional ) Tj ET Q q 0 0 0 rg BT 259.64 545.10 Td (T) Tj ET Q q 0 0 0 rg BT 265.40 545.10 Td (ier 1 capital \(which, together with CET1 capital, comprises ) Tj ET Q q 0 0 0 rg BT 504.31 545.10 Td (T) Tj ET Q q 0 0 0 rg BT 510.07 545.10 Td (ier 1 capital\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 533.10 Td (and ) Tj ET Q q 0 0 0 rg BT 52.76 533.10 Td (T) Tj ET Q q 0 0 0 rg BT 58.51 533.10 Td (ier 2 capital. CET1 capital is generally common stock, retained earnings, qualifying minority interest and, for advanced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 521.10 Td (approaches banking or) Tj ET Q q 0 0 0 rg BT 126.34 521.10 Td (ganizations, accumulated other comprehensive income related to both available for sale securities and pension ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 509.10 Td (and other post-retirement plans, less the deductions required to be made from CET1 capital. ) Tj ET Q q 0 0 0 rg BT 405.34 509.10 Td (Additional ) Tj ET Q q 0 0 0 rg BT 450.43 509.10 Td (T) Tj ET Q q 0 0 0 rg BT 456.19 509.10 Td (ier 1 capital generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 497.10 Td (includes, among other things, perpetual preferred stock and qualifying minority interests, less the deductions required to be made from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 485.10 Td (additional ) Tj ET Q q 0 0 0 rg BT 78.31 485.10 Td (T) Tj ET Q q 0 0 0 rg BT 84.07 485.10 Td (ier 1 capital. ) Tj ET Q q 0 0 0 rg BT 136.08 485.10 Td (T) Tj ET Q q 0 0 0 rg BT 141.84 485.10 Td (ier 2 capital generally comprises qualifying subordinated debt, less any required deductions from ) Tj ET Q q 0 0 0 rg BT 532.10 485.10 Td (T) Tj ET Q q 0 0 0 rg BT 537.86 485.10 Td (ier 2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 473.10 Td (capital. ) Tj ET Q q 0 0 0 rg BT 67.47 473.10 Td (There are significant limits on the extent to which minority interests in consolidated subsidiaries may be included in regulatory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 461.10 Td (capital. ) Tj ET Q q 0 0 0 rg BT 67.47 461.10 Td (T) Tj ET Q q 0 0 0 rg BT 72.88 461.10 Td (otal capital is the sum of ) Tj ET Q q 0 0 0 rg BT 173.23 461.10 Td (T) Tj ET Q q 0 0 0 rg BT 178.99 461.10 Td (ier 1 capital and ) Tj ET Q q 0 0 0 rg BT 245.44 461.10 Td (T) Tj ET Q q 0 0 0 rg BT 251.20 461.10 Td (ier 2 capital, less the deductions required from ) Tj ET Q q 0 0 0 rg BT 439.01 461.10 Td (T) Tj ET Q q 0 0 0 rg BT 444.42 461.10 Td (otal capital.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 38.00 449.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 437.10 Td (Because PNC remains in the parallel run qualification phase for the advanced approaches, our regulatory risk-based capital ratios in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 425.10 Td (2019 are calculated using the standardized approach for determining risk-weighted assets. Under the standardized approach for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 413.10 Td (determining credit risk-weighted assets, exposures are generally assigned a pre-defined risk weight. Exposures to high volatility ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 401.10 Td (commercial real estate, past due exposures and equity exposures are generally subject to higher risk weights than other types of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 389.10 Td (exposures. Once we exit parallel run, our regulatory risk-based capital ratios will be the lower of the ratios calculated under the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 377.10 Td (standardized approach and the advanced approaches. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 353.10 Td (The Basel III regulatory capital ratios of PNC and PNC Bank as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.66 353.10 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.92 353.10 Td ( exceeded the applicable minimum levels. For ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 341.10 Td (additional information regarding the Basel III capital ratios of PNC and PNC Bank as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.75 341.10 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.02 341.10 Td (, as well as the levels ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 329.10 Td (needed to be considered well capitalized, see the Capital Management portion of the Liquidity and Capital Management section of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 317.10 Td (Risk Management in Part I, Item 2 of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.74 317.10 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.01 317.10 Td ( Form 10-Q.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 293.10 Td (The Basel III rules also include public disclosure requirements that generally apply to banking or) Tj ET Q q 0 0 0 rg BT 424.04 293.10 Td (ganizations with total consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 281.10 Td (assets of $50 billion or more, including PNC. ) Tj ET Q q 0 0 0 rg BT 219.33 281.10 Td (An advanced approaches banking or) Tj ET Q q 0 0 0 rg BT 364.64 281.10 Td (ganization that meets the $50 billion asset threshold, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 269.10 Td (but that has not exited parallel run, such as PNC, must make the disclosures required under the standardized approach. ) Tj ET Q q 0 0 0 rg BT 511.42 269.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 560.76 269.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 257.10 Td (the disclosures by PNC in this Pillar 3 Report include those required by the standardized approach. PNC is the top-tier entity within ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 245.10 Td (the PNC or) Tj ET Q q 0 0 0 rg BT 80.82 245.10 Td (ganization to which the standardized approach applies. In addition, PNC has more than $1 billion in aggregate quarterly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 233.10 Td (average trading assets and trading liabilities, and is subject to the market risk capital rule as amended \(the "Market Risk Rule"\). ) Tj ET Q q 0 0 0 rg BT 548.00 233.10 Td (This ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 221.10 Td (Pillar 3 Report also includes PNC) Tj ET Q q 0 0 0 rg BT 174.05 221.10 Td (s required disclosures under the Market Risk Rule.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 197.10 Td (In October 2019, the Federal Reserve, Of) Tj ET Q q 0 0 0 rg BT 201.32 197.10 Td (fice of the Comptroller of the Currency \(OCC\) and Federal Deposit Insurance Corporation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 185.10 Td (\(FDIC\) adopted final rules to tailor the application of the agencies) Tj ET Q q 0 0 0 rg BT 302.95 185.10 Td ( capital \(including stress testing\) and liquidity rules, and the Federal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 173.10 Td (Reserve) Tj ET Q q 0 0 0 rg BT 70.99 173.10 Td (s enhanced prudential standards adopted under Section 165 of Dodd-Frank, to banking or) Tj ET Q q 0 0 0 rg BT 428.22 173.10 Td (ganizations with $100 billion or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 161.10 Td (more in consolidated total assets \(the Final ) Tj ET Q q 0 0 0 rg BT 209.39 161.10 Td (T) Tj ET Q q 0 0 0 rg BT 214.80 161.10 Td (ailoring Rules\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 137.10 Td (The Final ) Tj ET Q q 0 0 0 rg BT 76.92 137.10 Td (T) Tj ET Q q 0 0 0 rg BT 82.33 137.10 Td (ailoring Rules significantly modify the threshold deductions for significant common stock investments in unconsolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 125.10 Td (financial institutions, as well as mortgage servicing rights and deferred tax assets, from CET1 capital \(in each case, net of associated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 113.10 Td (deferred tax liabilities\) applicable to PNC and PNC Bank. Under the Final ) Tj ET Q q 0 0 0 rg BT 335.47 113.10 Td (T) Tj ET Q q 0 0 0 rg BT 340.88 113.10 Td (ailoring Rules, PNC and PNC Bank will have to deduct its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 101.10 Td (significant common stock investments in unconsolidated financial institutions, mortgage servicing rights and deferred tax assets from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 89.10 Td (CET1 capital \(in each case, net of associated deferred tax liabilities\) only to the extent such items individually exceed 25% of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 77.10 Td (institution's adjusted CET1 capital. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 53.10 Td (The Final ) Tj ET Q q 0 0 0 rg BT 76.92 53.10 Td (T) Tj ET Q q 0 0 0 rg BT 82.33 53.10 Td (ailoring Rules provide PNC and PNC Bank the ability to opt-out of the inclusion of accumulated other comprehensive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 41.10 Td (income \(AOCI\) related to both available for sale securities and pension and other post-retirement plans in CET1 capital.PNC and ) Tj ET Q endstream endobj 11 0 obj <> endobj 12 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 772.60 Td ( ) Tj ET Q q 0 0 0 rg BT 84.50 772.60 Td ( PNC Pillar 3 Standardized Disclosures as of September 30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 748.80 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 24.60 Td (5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 749.10 Td (PNC Bank must make this election in the or) Tj ET Q q 0 0 0 rg BT 211.91 749.10 Td (ganization) Tj ET Q q 0 0 0 rg BT 256.34 749.10 Td (s relevant regulatory reporting forms filed on the first reporting date after the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 737.10 Td (ef) Tj ET Q q 0 0 0 rg BT 43.59 737.10 Td (fective date of the Final ) Tj ET Q q 0 0 0 rg BT 140.87 737.10 Td (T) Tj ET Q q 0 0 0 rg BT 146.28 737.10 Td (ailoring Rules.PNC expects to make this election.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 713.10 Td (In addition, under the Final ) Tj ET Q q 0 0 0 rg BT 147.46 713.10 Td (T) Tj ET Q q 0 0 0 rg BT 152.88 713.10 Td (ailoring Rules, PNC and PNC Bank will not be subject to Basel III advanced approaches for determining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 701.10 Td (risk-weighted assets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 677.10 Td (The Final ) Tj ET Q q 0 0 0 rg BT 76.92 677.10 Td (T) Tj ET Q q 0 0 0 rg BT 82.33 677.10 Td (ailoring Rules become ef) Tj ET Q q 0 0 0 rg BT 182.40 677.10 Td (fective on December 31, 2019 and allow or) Tj ET Q q 0 0 0 rg BT 355.49 677.10 Td (ganizations to begin complying with the new rules ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 665.10 Td (beginning December 31, 2019, although certain related changes \(such as changes to the Basel III threshold deductions applicable to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 653.10 Td (PNC and PNC Bank described above\) do not become ef) Tj ET Q q 0 0 0 rg BT 259.94 653.10 Td (fective until January 1, 2020. ) Tj ET Q q 0 0 0 rg BT 378.52 653.10 Td (As such, we expect the changes to be fully ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 641.10 Td (ef) Tj ET Q q 0 0 0 rg BT 43.59 641.10 Td (fective for PNC and PNC Bank no later than the first quarter of 2020.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 36.00 612.30 Td (CAPIT) Tj ET Q q 0 0 0 rg BT 72.45 612.30 Td (AL) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 36.00 588.30 Td (Summary of Capital) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 564.30 Td (PNC) Tj ET Q q 0 0 0 rg BT 58.23 564.30 Td (s regulatory capital structure consists of the following capital instruments:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 36.00 540.30 Td (Common Stock) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 528.30 Td (PNC has $) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.78 528.30 Td (5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.78 528.30 Td ( par value common stock. ) Tj ET Q q 0 0 0 rg BT 188.76 528.30 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.26 528.30 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.52 528.30 Td (, there were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.94 528.30 Td (800) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.94 528.30 Td ( million shares authorized, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.46 528.30 Td (542) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.46 528.30 Td ( million shares issued, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 516.30 Td (of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.77 516.30 Td (103) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.77 516.30 Td ( million shares were held in treasury at cost. Holders of PNC common stock are entitled to receive dividends when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 504.30 Td (declared by PNC) Tj ET Q q 0 0 0 rg BT 107.09 504.30 Td (s Board of Directors out of funds legally available for this purpose. See Part II, Item 5, Market for Registrant) Tj ET Q q 0 0 0 rg BT 545.31 504.30 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 492.30 Td (Common Equity) Tj ET Q q 0 0 0 rg BT 101.74 492.30 Td (, Related Stockholder Matters and Issuer Purchases of Equity Securities in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 492.30 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.50 492.30 Td ( Form 10-K for additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 480.30 Td (information on our common stock.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 36.00 456.30 Td (Pr) Tj ET Q q 0 0 0 rg BT 46.37 456.30 Td (eferr) Tj ET Q q 0 0 0 rg BT 67.27 456.30 Td (ed Stock) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 444.30 Td (See Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.88 444.30 Td (15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.88 444.30 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.38 444.30 Td (Equity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.04 444.30 Td ( in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.65 444.30 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.65 444.30 Td ( Form 10-K for information on our preferred stock.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 36.00 420.30 Td (T) Tj ET Q q 0 0 0 rg BT 41.93 420.30 Td (rust Pr) Tj ET Q q 0 0 0 rg BT 72.02 420.30 Td (eferr) Tj ET Q q 0 0 0 rg BT 92.92 420.30 Td (ed Capital Securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 408.30 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 48.50 408.30 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.76 408.30 Td (, PNC had $206 million in principal amount of an outstanding junior subordinated debenture associated with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 396.30 Td ($200 million of trust preferred securities that were issued by a subsidiary statutory trust. See Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.52 396.30 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.52 396.30 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.02 396.30 Td (Borrowed Funds) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.96 396.30 Td ( in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.57 396.30 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.57 396.30 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 384.30 Td (Form 10-K for additional information on these instruments.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 36.00 360.30 Td (Qualifying Subordinated Debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 348.30 Td (PNC had $) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.89 348.30 Td (3.5 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.00 348.30 Td ( in subordinated debt that qualified as ) Tj ET Q q 0 0 0 rg BT 273.84 348.30 Td (T) Tj ET Q q 0 0 0 rg BT 279.60 348.30 Td (ier 2 capital for the Basel III ratio at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.92 348.30 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.19 348.30 Td (. ) Tj ET Q q 0 0 0 rg BT 511.00 348.30 Td (The interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 336.30 Td (rates on our subordinated debt range from 2.70% to 4.20% and maturities range from 2022 through 2028.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 36.00 312.30 Td (Restrictions on T) Tj ET Q q 0 0 0 rg BT 106.20 312.30 Td (ransfer of Funds or T) Tj ET Q q 0 0 0 rg BT 195.30 312.30 Td (otal Capital) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 288.30 Td (Federal law and regulations place a variety of restrictions on the ability of PNC to transfer funds or total capital among entities within ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 276.30 Td (the PNC group. See Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.88 276.30 Td (18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.88 276.30 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.38 276.30 Td (Regulatory Matters) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.86 276.30 Td ( in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.47 276.30 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.47 276.30 Td ( Form 10-K for additional information on these restrictions.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 36.00 252.30 Td (Capital ) Tj ET Q q 0 0 0 rg BT 68.13 252.30 Td (Adequacy) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 228.30 Td (PNC) Tj ET Q q 0 0 0 rg BT 58.23 228.30 Td (s overall capital planning objective is to maintain suf) Tj ET Q q 0 0 0 rg BT 269.66 228.30 Td (ficient capital resources, both in terms of quantity and quality) Tj ET Q q 0 0 0 rg BT 515.05 228.30 Td (, to cover all of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 216.30 Td (the firm) Tj ET Q q 0 0 0 rg BT 70.71 216.30 Td (s risks and allow the firm to operate ef) Tj ET Q q 0 0 0 rg BT 224.37 216.30 Td (fectively through a range of economic environments. PNC) Tj ET Q q 0 0 0 rg BT 460.98 216.30 Td (s internal capital adequacy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 204.30 Td (process \(CAP\) supports this overall objective by taking into account capital stress testing results, capital and liquidity positions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 192.30 Td (other risk considerations. In addition, PNC's CAP) Tj ET Q q 0 0 0 rg BT 234.64 192.30 Td ( has a sound risk management infrastructure, including but not limited to, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 180.30 Td (thorough review and consideration of alternative economic scenarios as well as other risks. ) Tj ET Q q 0 0 0 rg BT 402.37 180.30 Td (The Board of Directors, its Risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 168.30 Td (Committee, and senior management use the firm) Tj ET Q q 0 0 0 rg BT 233.45 168.30 Td (s CAP) Tj ET Q q 0 0 0 rg BT 258.92 168.30 Td ( results to assess the level of capital that is appropriate for the firm to maintain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 156.30 Td (in light of the range of risks facing the firm, the firm) Tj ET Q q 0 0 0 rg BT 248.72 156.30 Td (s business strategy) Tj ET Q q 0 0 0 rg BT 322.51 156.30 Td (, and its risk appetite. Sound capital stress testing practices and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 144.30 Td (methodologies are a key component of PNC) Tj ET Q q 0 0 0 rg BT 215.96 144.30 Td (s CAP) Tj ET Q q 0 0 0 rg BT 240.70 144.30 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 120.30 Td (In addition to the CAP) Tj ET Q q 0 0 0 rg BT 125.44 120.30 Td (, PNC is subject to the Federal Reserve) Tj ET Q q 0 0 0 rg BT 284.86 120.30 Td (s capital plan rule, annual capital stress testing requirements and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 108.30 Td (Comprehensive Capital ) Tj ET Q q 0 0 0 rg BT 132.09 108.30 Td (Analysis and Review \(CCAR\) process, as well as the applicable annual and mid-year Dodd-Frank capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 96.30 Td (stress testing requirements of the Federal Reserve and the OCC. ) Tj ET Q q 0 0 0 rg BT 293.99 96.30 Td (As part of the CCAR process, the Federal Reserve undertakes a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 84.30 Td (supervisory assessment of PNC) Tj ET Q q 0 0 0 rg BT 165.16 84.30 Td (s capital adequacy) Tj ET Q q 0 0 0 rg BT 237.81 84.30 Td (. ) Tj ET Q q 0 0 0 rg BT 242.63 84.30 Td (This assessment is based on a review of a comprehensive capital plan submitted by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 72.30 Td (PNC to the Federal Reserve that describes the company) Tj ET Q q 0 0 0 rg BT 261.49 72.30 Td (s planned capital actions during the nine-quarter review period, as well as the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 60.30 Td (results of stress tests conducted by both the company and the Federal Reserve under dif) Tj ET Q q 0 0 0 rg BT 385.73 60.30 Td (ferent hypothetical macroeconomic scenarios, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 48.30 Td (including a supervisory adverse and a supervisory severely adverse scenario provided by the Federal Reserve. ) Tj ET Q q 0 0 0 rg BT 477.52 48.30 Td (After completing its ) Tj ET Q endstream endobj 13 0 obj <> endobj 14 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 772.60 Td ( ) Tj ET Q q 0 0 0 rg BT 84.50 772.60 Td ( PNC Pillar 3 Standardized Disclosures as of September 30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 748.80 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 24.60 Td (6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 749.10 Td (review) Tj ET Q q 0 0 0 rg BT 62.56 749.10 Td (, the Federal Reserve may object or not object to PNC) Tj ET Q q 0 0 0 rg BT 281.67 749.10 Td (s proposed capital actions, such as plans to pay or increase common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 737.10 Td (stock dividends, repurchase common stock, or redeem preferred stock or other regulatory capital instruments, if PNC's projected post-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 725.10 Td (stress capital ratios do not remain above the applicable minimum capital ratios.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 36.00 701.10 Td (Capital Ratios) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 677.10 Td (The Basel III Common equity ) Tj ET Q q 0 0 0 rg BT 158.29 677.10 Td (T) Tj ET Q q 0 0 0 rg BT 164.05 677.10 Td (ier 1 capital, ) Tj ET Q q 0 0 0 rg BT 216.07 677.10 Td (T) Tj ET Q q 0 0 0 rg BT 221.83 677.10 Td (ier 1 risk-based capital and Leverage ratios now reflect the full phase-in of all Basel III) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 665.10 Td (adjustments, ef) Tj ET Q q 0 0 0 rg BT 96.36 665.10 Td (fective January 1, 2018. ) Tj ET Q q 0 0 0 rg BT 194.48 665.10 Td (The Basel III ) Tj ET Q q 0 0 0 rg BT 249.55 665.10 Td (T) Tj ET Q q 0 0 0 rg BT 254.96 665.10 Td (otal risk-based capital ratio includes $60 million of nonqualifying trust) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 653.10 Td (preferred capital securities that are subject to a phase-out period that runs through 2021. ) Tj ET Q q 0 0 0 rg BT 389.49 653.10 Td (All current period capital ratios are calculated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 641.10 Td (using the regulatory capital methodology applicable to us during 2018. ) Tj ET Q q 0 0 0 rg BT 321.59 641.10 Td (These Basel III capital ratios may be impacted by any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 629.10 Td (additional regulatory guidance or analysis by PNC as to the application of the rules to PNC.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 605.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 48.50 605.10 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.76 605.10 Td (, PNC and PNC Bank, our sole banking subsidiary) Tj ET Q q 0 0 0 rg BT 330.33 605.10 Td (, were both considered well capitalized, based on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 593.10 Td (applicable U.S. regulatory capital ratio requirements. ) Tj ET Q q 0 0 0 rg BT 250.46 593.10 Td (T) Tj ET Q q 0 0 0 rg BT 255.87 593.10 Td (o qualify as well capitalized, PNC must have Basel III capital ratios of at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 581.10 Td (least 6% for ) Tj ET Q q 0 0 0 rg BT 86.63 581.10 Td (T) Tj ET Q q 0 0 0 rg BT 92.39 581.10 Td (ier 1 risk-based capital and 10% for ) Tj ET Q q 0 0 0 rg BT 237.44 581.10 Td (T) Tj ET Q q 0 0 0 rg BT 242.85 581.10 Td (otal risk-based capital, and PNC Bank must have Basel III capital ratios of at least ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 569.10 Td (6.5% for Common equity ) Tj ET Q q 0 0 0 rg BT 140.53 569.10 Td (T) Tj ET Q q 0 0 0 rg BT 146.29 569.10 Td (ier 1 risk-based capital, 8% for ) Tj ET Q q 0 0 0 rg BT 271.89 569.10 Td (T) Tj ET Q q 0 0 0 rg BT 277.65 569.10 Td (ier 1 risk-based capital, 10% for ) Tj ET Q q 0 0 0 rg BT 408.26 569.10 Td (T) Tj ET Q q 0 0 0 rg BT 413.67 569.10 Td (otal risk-based capital and a Leverage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 557.10 Td (ratio of at least 5%. For PNC Bank) Tj ET Q q 0 0 0 rg BT 178.76 557.10 Td (s capital ratios, see PNC Bank) Tj ET Q q 0 0 0 rg BT 302.63 557.10 Td (s Call Report for the period ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.20 557.10 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.46 557.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 533.10 Td (The Basel III capital rule also includes a capital conservation buf) Tj ET Q q 0 0 0 rg BT 295.72 533.10 Td (fer requirement above the minimum risk-based capital ratio ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 521.10 Td (requirements that banking or) Tj ET Q q 0 0 0 rg BT 151.06 521.10 Td (ganizations must meet in order to avoid limitations on capital distributions \(including dividends and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 509.10 Td (repurchases of any ) Tj ET Q q 0 0 0 rg BT 113.29 509.10 Td (T) Tj ET Q q 0 0 0 rg BT 119.04 509.10 Td (ier 1 capital instrument, including common and qualifying preferred stock\) and certain discretionary incentive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 497.10 Td (compensation payments. ) Tj ET Q q 0 0 0 rg BT 137.19 497.10 Td (The multi-year phase-in of the capital conservation buf) Tj ET Q q 0 0 0 rg BT 357.20 497.10 Td (fer requirement began on January 1, 2016, and, for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 485.10 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 56.00 485.10 Td (, PNC and PNC Bank are required to maintain a Common equity ) Tj ET Q q 0 0 0 rg BT 317.72 485.10 Td (T) Tj ET Q q 0 0 0 rg BT 323.48 485.10 Td (ier 1 capital ratio of at least 7.0%, a ) Tj ET Q q 0 0 0 rg BT 467.96 485.10 Td (T) Tj ET Q q 0 0 0 rg BT 473.72 485.10 Td (ier 1 capital ratio of at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 473.10 Td (least 8.5%, and a ) Tj ET Q q 0 0 0 rg BT 106.35 473.10 Td (T) Tj ET Q q 0 0 0 rg BT 111.76 473.10 Td (otal risk-based capital ratio of at least 10.5% to avoid limitations on capital distributions and certain discretionary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 461.10 Td (incentive compensation payments. ) Tj ET Q q 0 0 0 rg BT 175.97 461.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.47 461.10 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.73 461.10 Td (, both PNC and PNC Bank were above these ratio requirements. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 437.10 Td (The following table outlines the Basel III ratios for PNC as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.95 437.10 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.21 437.10 Td (:) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 36.00 413.10 Td (T) Tj ET Q q 0 0 0 rg BT 41.19 413.10 Td (able ) Tj ET Q q 0 0 0 rg BT 60.91 413.10 Td (1: ) Tj ET Q q 0 0 0 rg BT 71.74 413.10 Td (Capital ) Tj ET Q q 0 0 0 rg BT 104.24 413.10 Td (Ratios ) Tj ET Q q 0 0 0 rg BT 132.86 413.10 Td (\(a\)) Tj ET Q 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 499.5 402.6 m 572.5 402.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 402.6 m 576.5 391.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 402.6 m 576.5 402.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 391.6 m 576.5 377.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 36.5 363.6 m 499.5 363.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 499.5 363.6 m 572.5 363.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 377.6 m 576.5 363.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 363.6 m 576.5 363.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 363.6 m 576.5 350.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 350.6 m 576.5 337.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 337.6 m 576.5 324.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 324.6 m 576.5 311.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 311.6 m 576.5 298.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 298.6 m 576.5 285.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 285.6 m 576.5 272.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 272.6 m 576.5 259.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 259.6 m 576.5 246.60000000000002 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 246.60000000000002 m 576.5 233.60000000000002 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 233.60000000000002 m 576.5 220.60000000000002 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 220.60000000000002 m 576.5 207.60000000000002 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 207.60000000000002 m 576.5 194.60000000000002 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 36.5 181.60000000000002 m 499.5 181.60000000000002 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 499.5 181.60000000000002 m 572.5 181.60000000000002 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 194.60000000000002 m 576.5 181.60000000000002 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 181.60000000000002 m 576.5 181.60000000000002 l s BT /F2 7.50 Tf ET q 0 0 0 rg BT 504.20 381.72 Td (September) Tj ET Q q 0 0 0 rg BT 538.71 381.72 Td ( 30, 2019) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 39.00 367.75 Td (In millions) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 521.60 367.72 Td (Basel III) Tj ET Q BT /F2 9.00 Tf ET 0 0 0 RG /GS0 gs 0.86 w 0 i [] 0 d 1 J 1 j 3 M 39 353.596337890625 m 57.49658203125 353.596337890625 l s q 0 0 0 rg BT 39.00 355.00 Td (PNC) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 39.00 342.00 Td (Regulatory capital) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 46.00 328.86 Td (Common equity ) Tj ET Q q 0 0 0 rg BT 106.42 328.86 Td (T) Tj ET Q q 0 0 0 rg BT 111.68 328.86 Td (ier 1 capital) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 502.00 328.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 536.75 328.86 Td (32,801) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 46.00 315.86 Td (T) Tj ET Q q 0 0 0 rg BT 51.34 315.86 Td (ier 1 capital) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 502.00 315.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 536.75 315.86 Td (36,631) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 46.00 302.86 Td (T) Tj ET Q q 0 0 0 rg BT 51.18 302.86 Td (otal capital) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 502.00 302.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 536.75 302.86 Td (43,214) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 39.00 290.00 Td (Risk-weighted assets) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 46.00 276.86 Td (Basel III standardized approach risk-weighted assets) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 502.00 276.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.25 276.86 Td (340,912) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 46.00 263.86 Td (Basel III advanced approaches risk-weighted assets) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 502.00 263.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.25 263.86 Td (319,960) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 46.00 250.86 Td (A) Tj ET Q q 0 0 0 rg BT 52.17 250.86 Td (verage quarterly adjusted total assets) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 502.00 250.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.25 250.86 Td (393,009) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 39.00 238.00 Td (Risk-based capital and leverage ratios) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 46.00 224.86 Td (Common equity ) Tj ET Q q 0 0 0 rg BT 106.42 224.86 Td (T) Tj ET Q q 0 0 0 rg BT 111.68 224.86 Td (ier 1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 553.25 224.86 Td (9.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 564.50 224.86 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 46.00 211.86 Td (T) Tj ET Q q 0 0 0 rg BT 51.34 211.86 Td (ier 1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 548.75 211.86 Td (10.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 564.50 211.86 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 46.00 198.86 Td (T) Tj ET Q q 0 0 0 rg BT 51.18 198.86 Td (otal) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 548.75 198.86 Td (12.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 564.50 198.86 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 46.00 185.86 Td (Leverage) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 553.25 185.86 Td (9.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 564.50 185.86 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 7.50 Tf ET q 0 0 0 rg BT 36.00 173.10 Td (\(a\) ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 54.00 173.10 Td (See ) Tj ET Q q 0 0 0 rg BT 66.57 173.10 Td (T) Tj ET Q q 0 0 0 rg BT 70.63 173.10 Td (able ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 84.99 173.10 Td (28) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 92.49 173.10 Td (: ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 96.45 173.10 Td (Basel III Capital) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 146.02 173.10 Td ( in the Capital Management portion of the Liquidity and Capital Management section of Risk Management in our ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 488.46 173.10 Td (September30, 2019) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 548.66 173.10 Td ( Form ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 54.00 164.10 Td (10-Q for additional information on the elements of, and, adjustments and deductions to our consolidated regulatory capital.) Tj ET Q endstream endobj 15 0 obj <> endobj 16 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 772.60 Td ( ) Tj ET Q q 0 0 0 rg BT 84.50 772.60 Td ( PNC Pillar 3 Standardized Disclosures as of September 30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 748.80 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 24.60 Td (7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 749.10 Td (The following table outlines PNC) Tj ET Q q 0 0 0 rg BT 173.76 749.10 Td (s standardized approach risk-weighted assets as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.31 749.10 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.57 749.10 Td ( using the categorization ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 737.10 Td (based on the standardized definitions:) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 36.00 713.10 Td (T) Tj ET Q q 0 0 0 rg BT 41.19 713.10 Td (able 2: Standardized Risk-W) Tj ET Q q 0 0 0 rg BT 157.96 713.10 Td (eighted ) Tj ET Q q 0 0 0 rg BT 190.08 713.10 Td (Assets ) Tj ET Q 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 36.5 689.6 m 461.5 689.6 l s 0 0 0 RG /GS0 gs 0.25 w 0 i [] 0 d 0 J 0 j 3 M 461.5 702.6 m 572.5 702.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 461.5 689.6 m 572.5 689.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 702.6 m 576.5 689.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 702.6 m 576.5 702.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 689.6 m 576.5 689.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 689.6 m 576.5 676.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 676.6 m 576.5 663.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 663.6 m 576.5 650.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 650.6 m 576.5 637.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 637.6 m 576.5 624.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 624.6 m 576.5 611.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 611.6 m 576.5 598.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 598.6 m 576.5 585.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 585.6 m 576.5 572.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 572.6 m 576.5 559.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 559.6 m 576.5 546.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 546.6 m 576.5 533.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 533.6 m 576.5 520.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 520.6 m 576.5 507.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 507.6 m 576.5 494.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 494.6 m 576.5 481.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 481.6 m 576.5 468.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 461.5 455.6 m 572.5 455.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 468.6 m 576.5 455.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 36.5 455.6 m 461.5 455.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 36.5 442.6 m 461.5 442.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 461.5 455.6 m 572.5 455.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 461.5 442.6 m 572.5 442.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 455.6 m 576.5 442.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 455.6 m 576.5 455.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 442.6 m 576.5 442.6 l s BT /F1 7.50 Tf ET q 0 0 0 rg BT 39.00 693.75 Td (In millions) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 485.20 693.72 Td (September) Tj ET Q q 0 0 0 rg BT 519.64 693.72 Td ( 30, 2019) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 39.00 681.00 Td (On Balance Sheet) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 46.00 667.86 Td (Exposures to sovereign entities \(a\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 46.00 654.86 Td (Exposures to depository institutions and foreign banks) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 464.00 654.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 552.15 654.86 Td (513) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 46.00 641.86 Td (Exposures to public sector entities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.40 641.86 Td (3,844) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 46.00 628.86 Td (Corporate exposures) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 536.40 628.86 Td (174,818) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 46.00 615.86 Td (Residential mortgage exposures) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 540.90 615.86 Td (30,283) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 46.00 602.86 Td (High volatility commercial real estate) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.40 602.86 Td (3,969) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 46.00 589.86 Td (Past due loans) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.40 589.86 Td (1,091) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 46.00 576.86 Td (Other assets) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 540.90 576.86 Td (24,125) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 46.00 563.86 Td (Securitization exposures) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.40 563.86 Td (9,851) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 46.00 550.86 Td (Equity exposures) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 540.90 550.86 Td (18,391) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 39.00 538.00 Td (Off Balance Sheet and Market Risk) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 46.00 524.86 Td (Of) Tj ET Q q 0 0 0 rg BT 55.42 524.86 Td (f balance sheet commitments, maturity less than one year) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.40 524.86 Td (4,846) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 46.00 511.86 Td (Of) Tj ET Q q 0 0 0 rg BT 55.42 511.86 Td (f balance sheet commitments, maturity more than one year) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 540.90 511.86 Td (50,318) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 46.00 498.86 Td (Derivatives) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.40 498.86 Td (3,928) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 46.00 485.86 Td (Securitization exposures) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.40 485.86 Td (1,698) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 46.00 472.86 Td (Letters of credit and other) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 540.90 472.86 Td (10,621) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 46.00 459.86 Td (Market risk) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.40 459.86 Td (2,616) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 39.00 447.00 Td (T) Tj ET Q q 0 0 0 rg BT 44.18 447.00 Td (otal Standardized Risk-W) Tj ET Q q 0 0 0 rg BT 143.69 447.00 Td (eighted ) Tj ET Q q 0 0 0 rg BT 173.44 447.00 Td (Assets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 464.00 447.00 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 536.40 447.00 Td (340,912) Tj ET Q BT /F1 10.00 Tf ET BT /F1 7.50 Tf ET q 0 0 0 rg BT 36.00 434.10 Td (\(a\) ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 54.00 434.10 Td (Exposures to, and portions of exposures that are directly and unconditionally guaranteed by) Tj ET Q q 0 0 0 rg BT 328.24 434.10 Td (, the U.S. government, its agencies and the Federal Reserve receive 0% risk ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 54.00 425.10 Td (weight.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 36.00 398.70 Td (CREDIT) Tj ET Q q 0 0 0 rg BT 82.46 398.70 Td ( RISK) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 374.70 Td (Credit risk represents the possibility that a customer) Tj ET Q q 0 0 0 rg BT 243.61 374.70 Td (, counterparty) Tj ET Q q 0 0 0 rg BT 298.50 374.70 Td (, or issuer may not perform in accordance with contractual terms. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 362.70 Td (Credit risk is inherent in the financial services business and results from extending credit to customers, purchasing securities, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 350.70 Td (entering into financial derivative transactions and certain guarantee contracts. Credit risk is one of our most significant risks. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 338.70 Td (processes for managing credit risk are embedded in PNC) Tj ET Q q 0 0 0 rg BT 266.49 338.70 Td (s risk culture and in our decision-making processes using a systematic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 326.70 Td (approach whereby credit risks and related exposures are identified and assessed, managed through specific policies and processes, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 314.70 Td (measured and evaluated against our risk appetite and credit concentration limits, and reported, along with specific mitigation activities, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 302.70 Td (to management and the Board of Directors through our governance structure. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 36.00 278.70 Td (Credit Risk Management) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 254.70 Td (Credit risk management is integrated into the overall enterprise risk management governance model. ) Tj ET Q q 0 0 0 rg BT 440.68 254.70 Td (The committees responsible for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 242.70 Td (conducting specific oversight, monitoring and reporting of credit risk management activities are described in further detail within the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 230.70 Td (Risk Management section in Part II, Item 7 of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.90 230.70 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.90 230.70 Td ( Form 10-K. PNC) Tj ET Q q 0 0 0 rg BT 332.35 230.70 Td (s overall credit process includes comprehensive credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 218.70 Td (policies, judgmental or statistical credit underwriting, frequent and detailed risk measurement and modeling, extensive credit training ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 206.70 Td (programs, and an ongoing credit risk review and/or audit process. PNC management desires to construct and maintain a loan portfolio ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 194.70 Td (that will allow it to meet its strategic return goals while remaining within our risk appetite, as described further in the Risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 182.70 Td (Management section in Part II, Item 7 of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.06 182.70 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.06 182.70 Td ( Form 10-K. ) Tj ET Q q 0 0 0 rg BT 288.73 182.70 Td (A) Tj ET Q q 0 0 0 rg BT 295.40 182.70 Td ( component of our credit risk management framework is our credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 170.70 Td (concentration process, by which we maintain limits and monitor credit exposure by industry) Tj ET Q q 0 0 0 rg BT 403.88 170.70 Td (, geography) Tj ET Q q 0 0 0 rg BT 450.43 170.70 Td (, property) Tj ET Q q 0 0 0 rg BT 488.66 170.70 Td (, product type and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 158.70 Td (customer) Tj ET Q q 0 0 0 rg BT 72.10 158.70 Td (. Loan participations with third parties, and loan sales and syndications, are used to manage risk concentrations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 134.70 Td (In addition to credit policies and procedures, PNC uses established guidelines for delinquent and nonperforming loans, acceptable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 122.70 Td (levels of industry and total borrower exposure, and other relevant credit measures to monitor risk. ) Tj ET Q q 0 0 0 rg BT 429.32 122.70 Td (These guidelines are established by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 110.70 Td (Credit Risk Management at the corporate, business and segment levels with the goal of achieving a desired level of risk within PNC) Tj ET Q q 0 0 0 rg BT 566.99 110.70 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 98.70 Td (risk appetite. ) Tj ET Q q 0 0 0 rg BT 89.97 98.70 Td (The established portfolio limits focus on specific pools or characteristics of risk and are designed to ensure that we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 86.70 Td (become aware of portfolio trends and help to enforce the desired construct of the loan portfolio. ) Tj ET Q q 0 0 0 rg BT 420.96 86.70 Td (W) Tj ET Q q 0 0 0 rg BT 429.60 86.70 Td (e may employ portfolio ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 74.70 Td (diversification and risk mitigation techniques to counter any undesirable risk pool trends or concentrations. Please refer to the Credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 62.70 Td (Risk Management section within Part I, Item 2 of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.35 62.70 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.61 62.70 Td ( Form 10-Q and Part II, Item 7 of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.53 62.70 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.53 62.70 Td ( Form 10-K for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 50.70 Td (the metrics that we use to monitor and manage credit risk.) Tj ET Q endstream endobj 17 0 obj <> endobj 18 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 772.60 Td ( ) Tj ET Q q 0 0 0 rg BT 84.50 772.60 Td ( PNC Pillar 3 Standardized Disclosures as of September 30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 748.80 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 24.60 Td (8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 749.10 Td (Credit risk management actions undertaken across the enterprise include continual refinement of underwriting standards, ef) Tj ET Q q 0 0 0 rg BT 529.26 749.10 Td (forts to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 737.10 Td (reduce credit exposure where appropriate, and regular credit risk monitoring and management activities. ) Tj ET Q q 0 0 0 rg BT 455.38 737.10 Td (T) Tj ET Q q 0 0 0 rg BT 460.79 737.10 Td (o further mitigate credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 725.10 Td (risk, we may periodically reduce or exit certain lending areas. ) Tj ET Q q 0 0 0 rg BT 285.16 725.10 Td (Where we have chosen not to retain the credit risk, it is either because it ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 713.10 Td (did not fit within the desired risk appetite, and/or because compensation for such risk is not adequate.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 36.00 689.10 Td (Summary of Credit Exposures) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 665.10 Td (PNC) Tj ET Q q 0 0 0 rg BT 58.23 665.10 Td (s major types of credit risk exposures consist of the following, all of which are presented in accordance with GAAP:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 36.00 641.10 Td (Loans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 629.10 Td (PNC had $) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.89 629.10 Td (237.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.39 629.10 Td ( billion in loans at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.11 629.10 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.37 629.10 Td (. See the Loans section within the Consolidated Balance Sheet Review in Part ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 617.10 Td (I, Item 2 of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.32 617.10 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.58 617.10 Td ( Form 10-Q for quantitative information on our loans and Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.70 617.10 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.70 617.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.64 617.10 Td (Asset Quality) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.36 617.10 Td ( in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 605.10 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.26 605.10 Td ( Form 10-Q for further information on loans. ) Tj ET Q q 0 0 0 rg BT 297.62 605.10 Td (Also see Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.22 605.10 Td (4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.22 605.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.17 605.10 Td (Allowance for Loan and Lease Losses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.17 605.10 Td ( in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 593.10 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.26 593.10 Td ( Form 10-Q for information on our allowance for loan losses.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 569.10 Td (Credit concentration limits have been established to avoid excessive credit concentrations in certain risk pools that, in the event of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 557.10 Td (increased credit losses, could af) Tj ET Q q 0 0 0 rg BT 162.71 557.10 Td (fect portfolio optimization in terms of capital preservation. Credit concentrations arise when otherwise ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 545.10 Td (unrelated loans are linked by a common characteristic \(such as aggregate customer exposure, industry) Tj ET Q q 0 0 0 rg BT 442.98 545.10 Td (, product, property or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 533.10 Td (geography\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 509.10 Td (See ) Tj ET Q q 0 0 0 rg BT 52.76 509.10 Td (T) Tj ET Q q 0 0 0 rg BT 58.17 509.10 Td (able ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.32 509.10 Td (15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.32 509.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.82 509.10 Td (Commercial Loans by Industry) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.52 509.10 Td ( within Credit Risk Management in Part I, Item 2 of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.32 509.10 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.58 509.10 Td ( Form 10-Q ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 497.10 Td (for the distribution of commercial loans by industry) Tj ET Q q 0 0 0 rg BT 242.25 497.10 Td (. See ) Tj ET Q q 0 0 0 rg BT 264.01 497.10 Td (T) Tj ET Q q 0 0 0 rg BT 269.42 497.10 Td (able ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.58 497.10 Td (16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.58 497.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.08 497.10 Td (Commercial Real Estate Loans by Geography and Property ) Tj ET Q q 0 0 0 rg BT 540.83 497.10 Td (T) Tj ET Q q 0 0 0 rg BT 546.24 497.10 Td (ype) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 560.68 497.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 485.10 Td (T) Tj ET Q q 0 0 0 rg BT 41.41 485.10 Td (able ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.57 485.10 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.57 485.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.07 485.10 Td (Home Equity Loans by Geography and by Lien ) Tj ET Q q 0 0 0 rg BT 265.62 485.10 Td (T) Tj ET Q q 0 0 0 rg BT 271.03 485.10 Td (ype) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.47 485.10 Td ( and ) Tj ET Q q 0 0 0 rg BT 304.73 485.10 Td (T) Tj ET Q q 0 0 0 rg BT 310.14 485.10 Td (able ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.29 485.10 Td (18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.29 485.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.79 485.10 Td (Residential Real Estate Loans by Geography) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.91 485.10 Td ( within ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 473.10 Td (Credit Risk Management in Part I, Item 2 of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.24 473.10 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.50 473.10 Td ( Form 10-Q for loans by geographic market, property type and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 461.10 Td (lien type.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 437.10 Td (The following table presents our consumer and commercial loan portfolios by remaining contractual maturity:) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 36.00 413.10 Td (T) Tj ET Q q 0 0 0 rg BT 41.19 413.10 Td (able 3: Loan Exposures by Remaining Contractual Maturity) Tj ET Q 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 236.5 402.6 m 317.5 402.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 317.5 402.6 m 321.5 402.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 321.5 402.6 m 402.5 402.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 402.5 402.6 m 406.5 402.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 406.5 402.6 m 487.5 402.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 487.5 402.6 m 491.5 402.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 491.5 402.6 m 572.5 402.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 402.6 m 576.5 389.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 402.6 m 576.5 402.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 36.5 376.6 m 236.5 376.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 236.5 376.6 m 317.5 376.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 317.5 376.6 m 321.5 376.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 321.5 376.6 m 402.5 376.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 402.5 376.6 m 406.5 376.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 406.5 376.6 m 487.5 376.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 487.5 376.6 m 491.5 376.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 491.5 376.6 m 572.5 376.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 389.6 m 576.5 376.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 376.6 m 576.5 376.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 236.5 376.6 m 317.5 376.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 321.5 376.6 m 402.5 376.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 406.5 376.6 m 487.5 376.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 376.6 m 576.5 363.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 236.5 350.6 m 317.5 350.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 321.5 350.6 m 402.5 350.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 406.5 350.6 m 487.5 350.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 363.6 m 576.5 350.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 36.5 350.6 m 236.5 350.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 36.5 337.6 m 236.5 337.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 236.5 337.6 m 317.5 337.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 317.5 350.6 m 321.5 350.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 317.5 337.6 m 321.5 337.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 321.5 337.6 m 402.5 337.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 402.5 350.6 m 406.5 350.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 402.5 337.6 m 406.5 337.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 406.5 337.6 m 487.5 337.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 487.5 350.6 m 491.5 350.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 487.5 337.6 m 491.5 337.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 491.5 350.6 m 572.5 350.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 491.5 337.6 m 572.5 337.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 350.6 m 576.5 337.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 350.6 m 576.5 350.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 337.6 m 576.5 337.6 l s BT /F2 7.50 Tf ET q 0 0 0 rg BT 39.00 393.72 Td (September) Tj ET Q q 0 0 0 rg BT 73.44 393.72 Td ( 30, 2019) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 248.65 380.72 Td (Less than one year) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 336.50 380.72 Td (One to five years) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 411.45 380.72 Td (Gr) Tj ET Q q 0 0 0 rg BT 420.55 380.72 Td (eater) Tj ET Q q 0 0 0 rg BT 436.64 380.72 Td ( than five years) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 525.30 380.72 Td (T) Tj ET Q q 0 0 0 rg BT 529.61 380.72 Td (otal) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 39.00 380.75 Td (In millions) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 367.86 Td (Commercial loans) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 239.00 367.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 289.25 367.86 Td (30,170) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 324.00 367.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 366.75 367.86 Td (103,976) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 409.00 367.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 456.25 367.86 Td (26,042) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 367.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 536.75 367.86 Td (160,188) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 354.86 Td (Consumer loans) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 290.75 354.86 Td (2,278) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 371.25 354.86 Td (13,855) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 456.25 354.86 Td (61,056) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 541.25 354.86 Td (77,189) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 342.00 Td (T) Tj ET Q q 0 0 0 rg BT 58.18 342.00 Td (otal) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 239.00 342.00 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 286.25 342.00 Td (32,448) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 324.00 342.00 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 366.75 342.00 Td (1) Tj ET Q q 0 0 0 rg BT 371.25 342.00 Td (17,831) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 409.00 342.00 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 456.25 342.00 Td (87,098) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 494.00 342.00 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 536.75 342.00 Td (237,377) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 314.10 Td (The methodologies used to estimate our allowance for loan and lease losses and PNC) Tj ET Q q 0 0 0 rg BT 380.08 314.10 Td (s policies for: determining past due or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 302.10 Td (delinquency status; placing loans on nonaccrual; returning loans to accrual status; identifying impaired loans, including the definition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 290.10 Td (of impaired loans; and char) Tj ET Q q 0 0 0 rg BT 145.22 290.10 Td (ging of) Tj ET Q q 0 0 0 rg BT 173.65 290.10 Td (f uncollectible amounts are described in detail in the Credit Risk Management and Critical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 278.10 Td (Accounting Estimates and Judgments sections in Part II, Item 7 and in Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.50 278.10 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.50 278.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.45 278.10 Td (Accounting Policies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.27 278.10 Td ( within our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.65 278.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 278.10 Td ( Form 10-K. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 36.00 254.10 Td (Securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 242.10 Td (PNC had $) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.89 242.10 Td (87.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.39 242.10 Td ( billion in investment securities at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.15 242.10 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.41 242.10 Td (. See the Investment Securities section within the Consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 230.10 Td (Balance Sheet Review in Part I, Item 2 of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.67 230.10 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.93 230.10 Td ( Form 10-Q for quantitative information on our investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 218.10 Td (securities. ) Tj ET Q q 0 0 0 rg BT 78.21 218.10 Td (Also see Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.81 218.10 Td (5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.81 218.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.31 218.10 Td (Investment Securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.68 218.10 Td (, in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.79 218.10 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.05 218.10 Td ( Form 10-Q for further information on investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 206.10 Td (securities, including the remaining contractual maturity on our debt securities.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 36.00 182.10 Td (Cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 170.10 Td (PNC had $) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.89 170.10 Td (19.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.39 170.10 Td ( billion in interest-earning deposits with banks and $) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.36 170.10 Td (5.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.86 170.10 Td ( billion in cash and due from banks at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.88 170.10 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.14 170.10 Td (. See ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 158.10 Td (the Consolidated Balance Sheet Review in Part I, Item 2 of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.66 158.10 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.92 158.10 Td ( Form 10-Q for further information on interest-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 146.10 Td (earning deposits with banks.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 36.00 122.10 Td (Derivatives) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 110.10 Td (PNC had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.89 110.10 Td ($4.6 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.00 110.10 Td ( in gross fair value of derivatives in an asset position and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.95 110.10 Td ($2.3 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.06 110.10 Td ( in gross fair value of derivatives in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 98.10 Td (liability position at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.05 98.10 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.32 98.10 Td (. See Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.19 98.10 Td (9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.19 98.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.69 98.10 Td (Financial Derivatives) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.50 98.10 Td ( in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.11 98.10 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.37 98.10 Td ( Form 10-Q for further ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 86.10 Td (quantitative and qualitative information on derivatives.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 62.10 Td (See the ) Tj ET Q q 0 0 0 rg BT 67.10 62.10 Td (A) Tj ET Q q 0 0 0 rg BT 73.58 62.10 Td (verage Consolidated Balance Sheet and Net Interest ) Tj ET Q q 0 0 0 rg BT 283.23 62.10 Td (Analysis in the Statistical Information section of Part I, Item 1 in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 50.10 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.26 50.10 Td ( Form 10-Q for average balances of our credit risk exposures.) Tj ET Q endstream endobj 19 0 obj <> endobj 20 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 772.60 Td ( ) Tj ET Q q 0 0 0 rg BT 84.50 772.60 Td ( PNC Pillar 3 Standardized Disclosures as of September 30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 748.80 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 24.60 Td (9) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 36.00 747.90 Td (CREDIT) Tj ET Q q 0 0 0 rg BT 82.46 747.90 Td ( RISK MITIGA) Tj ET Q q 0 0 0 rg BT 163.58 747.90 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 723.90 Td (PNC uses various strategies to mitigate credit risk in its portfolios, including: establishing credit risk appetite measures and limits that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 711.90 Td (define acceptable levels of total borrower exposure, and transferring loans to government agencies in securitization transactions. ) Tj ET Q q 0 0 0 rg BT 551.37 711.90 Td (As ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 699.90 Td (described within the Counterparty Credit Risk section of this Pillar 3 Report, we may also obtain collateral from counterparties to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 687.90 Td (manage our overall credit risk. In addition, guarantors can serve as a secondary source of repayment. ) Tj ET Q q 0 0 0 rg BT 441.49 687.90 Td (The primary types of guarantors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 675.90 Td (mitigating credit risk are: individuals, business entities, and the U.S. Government. Under the standardized approach, PNC can ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 663.90 Td (recognize a credit risk mitigation benefit for certain third-party guarantees. ) Tj ET Q q 0 0 0 rg BT 337.26 663.90 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.71 663.90 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.97 663.90 Td (, the reduction to risk-weighted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 651.90 Td (assets as a result of our qualifying third-party guarantees was approximately $2.1 billion.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 36.00 625.50 Td (COUNTERP) Tj ET Q q 0 0 0 rg BT 102.45 625.50 Td (AR) Tj ET Q q 0 0 0 rg BT 119.36 625.50 Td (TY) Tj ET Q q 0 0 0 rg BT 135.58 625.50 Td ( CREDIT) Tj ET Q q 0 0 0 rg BT 185.04 625.50 Td ( RISK) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 601.50 Td (Counterparty credit exposure arises from the risk that a counterparty is unable to meet its payment obligations to PNC under certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 589.50 Td (financial contracts. PNC aggregates a counterparty) Tj ET Q q 0 0 0 rg BT 242.03 589.50 Td (s exposures for all transactions involving derivatives and repurchase agreements. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 577.50 Td (For further information on PNC) Tj ET Q q 0 0 0 rg BT 166.54 577.50 Td (s use of derivatives, refer to Note 9 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.55 577.50 Td (Financial Derivatives) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.36 577.50 Td ( in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.96 577.50 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.23 577.50 Td ( Form 10-Q.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 553.50 Td (A) Tj ET Q q 0 0 0 rg BT 42.67 553.50 Td ( primary responsibility of credit risk management is the approval of new counterparty trading relationships and the subsequent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 541.50 Td (ongoing review of the creditworthiness of the counterparty) Tj ET Q q 0 0 0 rg BT 270.56 541.50 Td (. ) Tj ET Q q 0 0 0 rg BT 275.38 541.50 Td (The credit risk associated with derivatives executed with customers is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 529.50 Td (essentially the same as that involved in extending loans and is subject to normal credit policies. See the Credit Risk section within this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 517.50 Td (Pillar 3 Report for further discussion of our credit policies. In addition to using master netting agreements and other collateral ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 505.50 Td (agreements to reduce credit risk associated with derivative instruments, we also seek to manage credit risk by evaluating credit ratings ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 493.50 Td (of counterparties and by using internal credit analysis, limits, and monitoring procedures. Credit risk is included in the determination ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 481.50 Td (of the estimated net fair value of our derivatives.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 457.50 Td (Credit limits are typically set on a loan equivalent exposure basis and credit exposures and limits are monitored daily) Tj ET Q q 0 0 0 rg BT 503.56 457.50 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 433.50 Td (For further information on counterparty credit risk, including counterparty and transaction rating, credit approval process and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 421.50 Td (provisioning and for the notional amount of our derivatives, see Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.38 421.50 Td (9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.38 421.50 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.88 421.50 Td (Financial Derivatives) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.69 421.50 Td ( in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.29 421.50 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.56 421.50 Td ( Form 10-Q.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 36.00 397.50 Td (Counterparty Credit Risk Mitigation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 373.50 Td (Credit risk from derivatives is mitigated, where possible, through master netting agreements whereby derivative assets and liabilities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 361.50 Td (with the same counterparty can be of) Tj ET Q q 0 0 0 rg BT 183.54 361.50 Td (fset. ) Tj ET Q q 0 0 0 rg BT 202.80 361.50 Td (The International Swaps and Derivatives ) Tj ET Q q 0 0 0 rg BT 368.03 361.50 Td (Association, Inc. \(ISDA\) Master ) Tj ET Q q 0 0 0 rg BT 500.22 361.50 Td (Agreement is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 349.50 Td (PNC) Tj ET Q q 0 0 0 rg BT 58.23 349.50 Td (s preferred agreement for documenting over) Tj ET Q q 0 0 0 rg BT 234.34 349.50 Td (-the-counter \(OTC\) derivatives. It provides the contractual framework within which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 337.50 Td (dealing activities across a full range of OTC products are conducted and contractually binds both parties to apply close-out netting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 325.50 Td (across all outstanding transactions covered by such master netting agreement if either party defaults or other termination events occur) Tj ET Q q 0 0 0 rg BT 569.71 325.50 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 313.50 Td (There are certain instances in which we use customized agreements in lieu of an ISDA) Tj ET Q q 0 0 0 rg BT 381.99 313.50 Td ( Master ) Tj ET Q q 0 0 0 rg BT 414.20 313.50 Td (Agreement; however) Tj ET Q q 0 0 0 rg BT 497.93 313.50 Td (, these agreements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 301.50 Td (include closeout netting language to protect PNC in a similar manner as the ISDA) Tj ET Q q 0 0 0 rg BT 363.43 301.50 Td ( Master ) Tj ET Q q 0 0 0 rg BT 395.64 301.50 Td (Agreement. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 277.50 Td (Repurchase and resale agreements are typically entered into with counterparties under industry standard master netting agreements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 265.50 Td (which provide for the right to of) Tj ET Q q 0 0 0 rg BT 164.68 265.50 Td (fset amounts owed to one another with respect to multiple repurchase and resale agreements under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 253.50 Td (such master netting agreement \(referred to as netting arrangements\) and liquidate the purchased or borrowed securities in the event of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 241.50 Td (counterparty default. In order for an arrangement to be eligible for netting under GAAP) Tj ET Q q 0 0 0 rg BT 385.32 241.50 Td (, we must obtain the requisite assurance that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 229.50 Td (the of) Tj ET Q q 0 0 0 rg BT 58.87 229.50 Td (fsetting rights included in the master netting agreement would be legally enforceable in the event of bankruptcy) Tj ET Q q 0 0 0 rg BT 504.74 229.50 Td (, insolvency) Tj ET Q q 0 0 0 rg BT 552.41 229.50 Td (, or a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 217.50 Td (similar proceeding of such third party) Tj ET Q q 0 0 0 rg BT 186.14 217.50 Td (. Enforceability is evidenced by obtaining a legal opinion that supports, with suf) Tj ET Q q 0 0 0 rg BT 506.45 217.50 Td (ficient ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 204.30 Td (confidence, the enforceability of the master netting agreement in bankruptcy) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 341.99 204.30 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 36.00 180.30 Td (Collateral) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 156.30 Td (PNC may obtain collateral against derivative assets, depending on the creditworthiness of the counterparty and/or nature of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 144.30 Td (transaction. ) Tj ET Q q 0 0 0 rg BT 84.32 144.30 Td (All marketable transactions and associated collateral positions are independently revalued and monitored daily) Tj ET Q q 0 0 0 rg BT 526.30 144.30 Td (. Collateral ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 132.30 Td (thresholds vary by counterparty) Tj ET Q q 0 0 0 rg BT 162.26 132.30 Td (. ) Tj ET Q q 0 0 0 rg BT 167.08 132.30 Td (The majority of collateral held as credit risk mitigation is either cash, U.S. ) Tj ET Q q 0 0 0 rg BT 466.26 132.30 Td (T) Tj ET Q q 0 0 0 rg BT 472.02 132.30 Td (reasury) Tj ET Q q 0 0 0 rg BT 500.79 132.30 Td (, or Government ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 120.30 Td (agency securities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 96.30 Td (W) Tj ET Q q 0 0 0 rg BT 45.04 96.30 Td (ith respect to repurchase and resale agreements, PNC takes possession of securities purchased under agreements to resell. ) Tj ET Q q 0 0 0 rg BT 532.75 96.30 Td (W) Tj ET Q q 0 0 0 rg BT 541.39 96.30 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 84.30 Td (monitor the market value of securities to be repurchased and resold and additional collateral may be obtained where considered ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 72.30 Td (appropriate to protect against credit exposure.) Tj ET Q endstream endobj 21 0 obj <> endobj 22 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 772.60 Td ( ) Tj ET Q q 0 0 0 rg BT 84.50 772.60 Td ( PNC Pillar 3 Standardized Disclosures as of September 30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 748.80 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 24.60 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 749.10 Td (Certain derivative agreements contain various credit-risk related contingent provisions, such as those that require PNC) Tj ET Q q 0 0 0 rg BT 512.81 749.10 Td (s debt to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 737.10 Td (maintain a specified credit rating from one or more of the major credit rating agencies. For additional information on the potential ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 725.10 Td (impact of an investment rating downgrade, see the Of) Tj ET Q q 0 0 0 rg BT 250.47 725.10 Td (fsetting, Counterparty Credit Risk and Contingent Features section of Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.92 725.10 Td (9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.92 725.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 713.10 Td (Financial Derivatives) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.81 713.10 Td ( in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.41 713.10 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.68 713.10 Td ( Form 10-Q.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 689.10 Td (Further detail regarding the net unsecured credit exposure on our derivatives and other contracts is presented in the following table: ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 36.00 665.10 Td (T) Tj ET Q q 0 0 0 rg BT 41.19 665.10 Td (able 4: Counterparty Credit Risk Exposures ) Tj ET Q 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 196.5 654.6 m 200.5 654.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 200.5 654.6 m 290.5 654.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 290.5 654.6 m 294.5 654.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 294.5 654.6 m 384.5 654.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 384.5 654.6 m 388.5 654.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 388.5 654.6 m 478.5 654.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 478.5 654.6 m 482.5 654.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 482.5 654.6 m 572.5 654.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 654.6 m 576.5 641.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 654.6 m 576.5 654.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 36.5 628.6 m 196.5 628.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 196.5 628.6 m 200.5 628.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 200.5 628.6 m 290.5 628.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 290.5 628.6 m 294.5 628.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 294.5 628.6 m 384.5 628.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 384.5 628.6 m 388.5 628.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 388.5 628.6 m 478.5 628.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 478.5 628.6 m 482.5 628.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 482.5 628.6 m 572.5 628.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 641.6 m 576.5 628.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 628.6 m 576.5 628.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 200.5 628.6 m 290.5 628.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 290.5 628.6 m 294.5 628.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 294.5 628.6 m 384.5 628.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 384.5 628.6 m 388.5 628.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 388.5 628.6 m 478.5 628.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 478.5 628.6 m 482.5 628.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 482.5 628.6 m 572.5 628.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 628.6 m 576.5 615.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 36.5 602.6 m 196.5 602.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 196.5 602.6 m 200.5 602.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 200.5 602.6 m 290.5 602.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 290.5 602.6 m 294.5 602.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 294.5 602.6 m 384.5 602.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 384.5 602.6 m 388.5 602.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 388.5 602.6 m 478.5 602.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 478.5 602.6 m 482.5 602.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 482.5 602.6 m 572.5 602.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 615.6 m 576.5 602.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 602.6 m 576.5 602.6 l s BT /F2 7.50 Tf ET q 0 0 0 rg BT 39.00 645.72 Td (September) Tj ET Q q 0 0 0 rg BT 73.44 645.72 Td ( 30, 2019) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 204.60 632.72 Td (Gr) Tj ET Q q 0 0 0 rg BT 213.70 632.72 Td (oss Positive Fair) Tj ET Q q 0 0 0 rg BT 265.64 632.72 Td ( ) Tj ET Q q 0 0 0 rg BT 267.38 632.72 Td (V) Tj ET Q q 0 0 0 rg BT 272.38 632.72 Td (alue) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 314.30 632.72 Td (Collateral Held) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 398.10 640.22 Td (Net Unsecur) Tj ET Q q 0 0 0 rg BT 437.82 640.22 Td (ed Cr) Tj ET Q q 0 0 0 rg BT 455.80 640.22 Td (edit) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 417.85 632.72 Td (Exposur) Tj ET Q q 0 0 0 rg BT 444.88 632.72 Td (e) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 498.20 640.22 Td (Cr) Tj ET Q q 0 0 0 rg BT 506.81 640.22 Td (edit Equivalent) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 513.85 632.72 Td (Amount) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 39.00 632.75 Td (In millions) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 619.86 Td (OTC derivatives) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 203.00 619.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 263.75 619.86 Td (9,882) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 297.00 619.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 357.75 619.86 Td (2,167) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 391.00 619.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 451.75 619.86 Td (5,1) Tj ET Q q 0 0 0 rg BT 463.00 619.86 Td (17) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.00 619.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.75 619.86 Td (5,145) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 606.86 Td (Repo-style transactions) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 203.00 606.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 263.75 606.86 Td (4,047) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 297.00 606.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 357.75 606.86 Td (4,034) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 391.00 606.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.00 606.86 Td (21) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.00 606.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 552.50 606.86 Td (368) Tj ET Q BT /F1 10.00 Tf ET BT /F2 12.00 Tf ET q 0 0 0 rg BT 36.00 576.70 Td (SECURITIZA) Tj ET Q q 0 0 0 rg BT 109.80 576.70 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 552.70 Td (The Basel III rules define a securitization exposure as an exposure that meets the following criteria:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 528.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 528.70 Td (All or a portion of the credit risk of one or more underlying exposures is transferred to one or more third parties;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 516.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 516.70 Td (The credit risk associated with the underlying exposures has been separated into at least two tranches reflecting dif) Tj ET Q q 0 0 0 rg BT 530.83 516.70 Td (ferent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 504.70 Td (levels of seniority;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 492.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 492.70 Td (Performance of the securitization depends on performance of the underlying exposures;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 480.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 480.70 Td (All or substantially all of the underlying exposures are financial exposures;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 468.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 468.70 Td (The underlying exposures are not owned by an operating company; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 456.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 456.70 Td (The underlying exposures are not owned by a small business investment company or related to a community development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 444.70 Td (investment. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 420.70 Td (Generally) Tj ET Q q 0 0 0 rg BT 74.77 420.70 Td (, PNC does not securitize its own assets but does have multiple asset types meeting the definition of securitization exposure, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 408.70 Td (which are primarily secured lending and investment positions. See the Credit Risk section within this report for further discussion of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 396.70 Td (our credit policies. ) Tj ET Q q 0 0 0 rg BT 113.02 396.70 Td (The following activities meet the regulatory definition of a securitization:) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 54.00 372.20 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 372.20 Td (Investment securities that meet the definition of a securitization exposure including asset-backed securities, commercial and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 359.70 Td (residential mortgage-backed securities, and collateralized loan obligations;) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 54.00 347.20 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 347.20 Td (Secured lending to our clients consisting of collateralized loan obligations and securitizations of trade receivables, auto loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 334.70 Td (and lease assets, equipment leases, fleet leases, and capital commitments;) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 54.00 322.20 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 322.20 Td (Servicing advances to transactions including commercial and residential mortgage-backed securities;) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 54.00 309.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 309.70 Td (Subscription line facilities to real estate investment funds secured by the capital commitments of the funds) Tj ET Q q 0 0 0 rg BT 500.31 309.70 Td ( investors; and) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 54.00 297.20 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 297.20 Td (OTC derivatives to special purpose entities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 273.20 Td (For a description of the roles that PNC plays in the securitization process, refer to Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.74 273.20 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.74 273.20 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.24 273.20 Td (Loan Sale and Servicing ) Tj ET Q q 0 0 0 rg BT 494.22 273.20 Td (Activities and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 261.20 Td (V) Tj ET Q q 0 0 0 rg BT 42.11 261.20 Td (ariable Interest Entities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.85 261.20 Td ( in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.46 261.20 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.46 261.20 Td ( Form 10-K.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 36.00 237.20 Td (Summary of ) Tj ET Q q 0 0 0 rg BT 88.97 237.20 Td (Accounting Policies for Securitization ) Tj ET Q q 0 0 0 rg BT 248.06 237.20 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 213.20 Td (A) Tj ET Q q 0 0 0 rg BT 42.67 213.20 Td ( summary of PNC) Tj ET Q q 0 0 0 rg BT 117.95 213.20 Td (s accounting policies for securitization activities is outlined in Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.10 213.20 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.10 213.20 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.05 213.20 Td (Accounting Policies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.87 213.20 Td ( and in Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.53 213.20 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.53 213.20 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.03 213.20 Td (Loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 201.20 Td (Sale and Servicing ) Tj ET Q q 0 0 0 rg BT 112.93 201.20 Td (Activities and ) Tj ET Q q 0 0 0 rg BT 171.07 201.20 Td (V) Tj ET Q q 0 0 0 rg BT 177.18 201.20 Td (ariable Interest Entities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.92 201.20 Td ( in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.53 201.20 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.53 201.20 Td ( Form 10-K.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 36.00 177.20 Td (Risk Management) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 153.20 Td (The Securitization Committee, which is a sub-committee of PNC) Tj ET Q q 0 0 0 rg BT 299.56 153.20 Td (s Basel Compliance Committee, provides governance over the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 141.20 Td (identification and categorization of securitization exposures. Each line of business with securitization exposure submits a quarterly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 129.20 Td (reporting package to the Securitization Committee that includes a summary of securitization exposures attributable to their business, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 117.20 Td (the associated capital requirements and the status of associated controls.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 93.20 Td (For further information on how we use derivatives to mitigate risk associated with changes in the fair value of assets, see Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.92 93.20 Td (13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.92 93.20 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 81.20 Td (Financial Derivatives) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.81 81.20 Td ( in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.41 81.20 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.41 81.20 Td ( Form 10-K. Information on how we monitor and evaluate changes in credit can be found in Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 562.81 81.20 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 567.81 81.20 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 69.20 Td (Asset Quality) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.72 69.20 Td ( and Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.09 69.20 Td (5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.09 69.20 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.59 69.20 Td (Investment Securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.96 69.20 Td ( in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.57 69.20 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.83 69.20 Td ( Form 10-Q.) Tj ET Q endstream endobj 23 0 obj <> endobj 24 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 772.60 Td ( ) Tj ET Q q 0 0 0 rg BT 84.50 772.60 Td ( PNC Pillar 3 Standardized Disclosures as of September 30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 748.80 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.15 24.60 Td (1) Tj ET Q q 0 0 0 rg BT 305.78 24.60 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 749.10 Td (The following table presents our total on- and of) Tj ET Q q 0 0 0 rg BT 229.66 749.10 Td (f-balance sheet securitization exposures:) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 36.00 725.10 Td (T) Tj ET Q q 0 0 0 rg BT 41.19 725.10 Td (able 5: Securitization Exposures by Underlying ) Tj ET Q q 0 0 0 rg BT 238.06 725.10 Td (Asset T) Tj ET Q q 0 0 0 rg BT 267.96 725.10 Td (ype) Tj ET Q 0 0 0 RG /GS0 gs 0.25 w 0 i [] 0 d 0 J 0 j 3 M 210.5 714.6 m 328.5 714.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 210.5 701.6 m 328.5 701.6 l s 0 0 0 RG /GS0 gs 0.25 w 0 i [] 0 d 0 J 0 j 3 M 328.5 714.6 m 332.5 714.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 328.5 701.6 m 332.5 701.6 l s 0 0 0 RG /GS0 gs 0.25 w 0 i [] 0 d 0 J 0 j 3 M 332.5 714.6 m 450.5 714.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 332.5 701.6 m 450.5 701.6 l s 0 0 0 RG /GS0 gs 0.25 w 0 i [] 0 d 0 J 0 j 3 M 450.5 714.6 m 454.5 714.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 450.5 701.6 m 454.5 701.6 l s 0 0 0 RG /GS0 gs 0.25 w 0 i [] 0 d 0 J 0 j 3 M 454.5 714.6 m 572.5 714.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 454.5 701.6 m 572.5 701.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 714.6 m 576.5 701.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 714.6 m 576.5 714.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 701.6 m 576.5 701.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 36.5 688.6 m 210.5 688.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 328.5 688.6 m 332.5 688.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 332.5 688.6 m 450.5 688.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 450.5 688.6 m 454.5 688.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 454.5 688.6 m 572.5 688.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 701.6 m 576.5 688.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 688.6 m 576.5 688.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 210.5 688.6 m 328.5 688.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 688.6 m 576.5 675.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 675.6 m 576.5 662.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 662.6 m 576.5 649.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 210.5 636.6 m 328.5 636.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 454.5 636.6 m 572.5 636.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 649.6 m 576.5 636.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 636.6 m 576.5 623.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 623.6 m 576.5 610.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 610.6 m 576.5 597.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 36.5 584.6 m 210.5 584.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 210.5 584.6 m 328.5 584.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 328.5 584.6 m 332.5 584.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 332.5 584.6 m 450.5 584.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 450.5 584.6 m 454.5 584.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 454.5 584.6 m 572.5 584.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 597.6 m 576.5 584.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 584.6 m 576.5 584.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 36.5 571.6 m 210.5 571.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 210.5 571.6 m 328.5 571.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 328.5 571.6 m 332.5 571.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 332.5 571.6 m 450.5 571.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 450.5 571.6 m 454.5 571.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 454.5 571.6 m 572.5 571.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 584.6 m 576.5 571.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 571.6 m 576.5 571.6 l s BT /F2 7.50 Tf ET q 0 0 0 rg BT 359.70 705.72 Td (September) Tj ET Q q 0 0 0 rg BT 394.14 705.72 Td ( 30, 2019) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 41.00 692.75 Td (In millions) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 226.95 692.72 Td (On-Balance Sheet ) Tj ET Q q 0 0 0 rg BT 285.91 692.72 Td (Amount) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 343.25 692.72 Td (Off-Balance Sheet ) Tj ET Q q 0 0 0 rg BT 403.03 692.72 Td (Amount \(a\)) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 489.20 692.72 Td (T) Tj ET Q q 0 0 0 rg BT 493.51 692.72 Td (otal Exposur) Tj ET Q q 0 0 0 rg BT 534.43 692.72 Td (e) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 41.00 679.86 Td (Residential mortgage-backed securities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 215.00 679.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 297.75 679.86 Td (2,071) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 459.00 679.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 541.75 679.86 Td (2,071) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 41.00 666.86 Td (Commercial mortgage-backed securities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 297.75 666.86 Td (3,696) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 541.75 666.86 Td (3,696) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 41.00 653.86 Td (Asset-backed securities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 297.75 653.86 Td (5,440) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 541.75 653.86 Td (5,440) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 41.00 640.86 Td (State and municipal securities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 304.50 640.86 Td (151) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 548.50 640.86 Td (151) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 48.00 627.86 Td (T) Tj ET Q q 0 0 0 rg BT 52.87 627.86 Td (otal securities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 215.00 627.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 293.25 627.86 Td (1) Tj ET Q q 0 0 0 rg BT 297.75 627.86 Td (1,358) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 459.00 627.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 537.25 627.86 Td (1) Tj ET Q q 0 0 0 rg BT 541.75 627.86 Td (1,358) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 41.00 601.86 Td (Loans) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 215.00 601.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 293.25 601.86 Td (14,818) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 337.00 601.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 419.40 601.86 Td (8,295) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 459.00 601.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 537.25 601.86 Td (23,1) Tj ET Q q 0 0 0 rg BT 553.00 601.86 Td (13) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 41.00 588.86 Td (Other assets \(b\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 304.50 588.86 Td (339) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 430.65 588.86 Td (31) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 548.50 588.86 Td (370) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 55.00 576.00 Td (T) Tj ET Q q 0 0 0 rg BT 60.18 576.00 Td (otal) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 215.00 576.00 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 293.25 576.00 Td (26,515) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 337.00 576.00 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 419.40 576.00 Td (8,326) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 459.00 576.00 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 537.25 576.00 Td (34,841) Tj ET Q BT /F1 10.00 Tf ET BT /F1 7.50 Tf ET q 0 0 0 rg BT 36.00 563.10 Td (\(a\) ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 54.00 563.10 Td (Primarily unfunded commitments to extend credit.) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 36.00 554.10 Td (\(b\) ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 54.00 554.10 Td (Includes accrued interest on securitization exposures.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 36.00 530.10 Td (Regulatory T) Tj ET Q q 0 0 0 rg BT 89.79 530.10 Td (reatment of Securitizations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 506.10 Td (The standardized approach requires banks to use either the Simplified Supervisory Formula ) Tj ET Q q 0 0 0 rg BT 404.24 506.10 Td (Approach \(SSF) Tj ET Q q 0 0 0 rg BT 465.44 506.10 Td (A\) or assign a 1250% risk-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 494.10 Td (weight to determine regulatory capital for securitization exposures. ) Tj ET Q q 0 0 0 rg BT 306.56 494.10 Td (The total exposure includes the aggregate of all on- and of) Tj ET Q q 0 0 0 rg BT 539.62 494.10 Td (f-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 482.10 Td (balance sheet exposures.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 458.10 Td (The following table outlines our securitization exposures, the related risk-weighted amount and capital requirement:) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 36.00 434.10 Td (T) Tj ET Q q 0 0 0 rg BT 41.19 434.10 Td (able 6: Capital Requirements of Securitization Exposures by Risk-W) Tj ET Q q 0 0 0 rg BT 322.14 434.10 Td (eighting \(a\)) Tj ET Q 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 36.5 410.6 m 275.5 410.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 275.5 423.6 m 279.5 423.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 275.5 410.6 m 279.5 410.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 279.5 423.6 m 374.5 423.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 279.5 410.6 m 374.5 410.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 374.5 423.6 m 378.5 423.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 374.5 410.6 m 378.5 410.6 l s 0 0 0 RG /GS0 gs 0.25 w 0 i [] 0 d 0 J 0 j 3 M 378.5 423.6 m 473.5 423.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 378.5 410.6 m 473.5 410.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 473.5 423.6 m 477.5 423.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 473.5 410.6 m 477.5 410.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 477.5 423.6 m 572.5 423.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 477.5 410.6 m 572.5 410.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 423.6 m 576.5 410.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 423.6 m 576.5 423.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 410.6 m 576.5 410.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 36.5 397.6 m 275.5 397.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 275.5 397.6 m 279.5 397.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 279.5 397.6 m 374.5 397.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 374.5 397.6 m 378.5 397.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 378.5 397.6 m 473.5 397.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 473.5 397.6 m 477.5 397.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 477.5 397.6 m 572.5 397.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 410.6 m 576.5 397.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 397.6 m 576.5 397.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 397.6 m 576.5 384.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 384.6 m 576.5 371.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 371.6 m 576.5 358.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 358.6 m 576.5 345.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 345.6 m 576.5 332.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 332.6 m 576.5 319.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 319.6 m 576.5 306.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 36.5 293.6 m 275.5 293.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 275.5 293.6 m 279.5 293.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 279.5 293.6 m 374.5 293.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 374.5 293.6 m 378.5 293.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 378.5 293.6 m 473.5 293.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 473.5 293.6 m 477.5 293.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 477.5 293.6 m 572.5 293.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 306.6 m 576.5 293.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 293.6 m 576.5 293.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 36.5 280.6 m 275.5 280.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 275.5 280.6 m 279.5 280.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 279.5 280.6 m 374.5 280.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 374.5 280.6 m 378.5 280.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 378.5 280.6 m 473.5 280.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 473.5 280.6 m 477.5 280.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 477.5 293.6 m 572.5 293.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 477.5 280.6 m 572.5 280.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 293.6 m 576.5 280.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 280.6 m 576.5 280.6 l s BT /F1 7.50 Tf ET q 0 0 0 rg BT 39.00 414.75 Td (In millions) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 394.20 414.72 Td (September) Tj ET Q q 0 0 0 rg BT 428.64 414.72 Td ( 30, 2019) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 124.55 401.72 Td (Risk-W) Tj ET Q q 0 0 0 rg BT 148.93 401.72 Td (eight Bands) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 302.20 401.72 Td (T) Tj ET Q q 0 0 0 rg BT 306.86 401.72 Td (otal Exposur) Tj ET Q q 0 0 0 rg BT 347.50 401.72 Td (e) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 387.85 401.72 Td (Risk-W) Tj ET Q q 0 0 0 rg BT 412.23 401.72 Td (eighted ) Tj ET Q q 0 0 0 rg BT 437.03 401.72 Td (Amount) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 485.15 401.72 Td (Capital Requir) Tj ET Q q 0 0 0 rg BT 533.14 401.72 Td (ement \(b\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 39.00 389.00 Td (Simplified Supervisory Formula ) Tj ET Q q 0 0 0 rg BT 165.01 389.00 Td (Appr) Tj ET Q q 0 0 0 rg BT 185.18 389.00 Td (oach \(SSF) Tj ET Q q 0 0 0 rg BT 223.52 389.00 Td (A\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 375.86 Td (=20%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 282.00 375.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 343.25 375.86 Td (31,197) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 381.00 375.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 446.75 375.86 Td (6,240) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.00 375.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 552.50 375.86 Td (499) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 362.86 Td (> 20% and <= 100%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 347.75 362.86 Td (1,683) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.50 362.86 Td (627) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 557.00 362.86 Td (50) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 349.86 Td (> 100% and <= 650%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 347.75 349.86 Td (1,940) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 446.75 349.86 Td (4,448) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 552.50 349.86 Td (356) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 336.86 Td (> 650% and <1250%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 363.50 336.86 Td (9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 458.00 336.86 Td (83) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 561.50 336.86 Td (7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 323.86 Td (=1250%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 363.50 323.86 Td (9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.50 323.86 Td (1) Tj ET Q q 0 0 0 rg BT 458.00 323.86 Td (1) Tj ET Q q 0 0 0 rg BT 462.50 323.86 Td (1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 561.50 323.86 Td (9) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 39.00 311.00 Td (Non-Simplified Supervisory Formula ) Tj ET Q q 0 0 0 rg BT 183.76 311.00 Td (Appr) Tj ET Q q 0 0 0 rg BT 204.10 311.00 Td (oach \(Non-SSF) Tj ET Q q 0 0 0 rg BT 261.19 311.00 Td (A\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 297.86 Td (=1250%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 363.50 297.86 Td (3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 458.00 297.86 Td (40) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 561.50 297.86 Td (3) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 285.00 Td (T) Tj ET Q q 0 0 0 rg BT 58.18 285.00 Td (otal) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 282.00 285.00 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 343.25 285.00 Td (34,841) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 381.00 285.00 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 442.25 285.00 Td (1) Tj ET Q q 0 0 0 rg BT 446.75 285.00 Td (1,549) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 480.00 285.00 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 552.50 285.00 Td (924) Tj ET Q BT /F1 10.00 Tf ET BT /F1 7.50 Tf ET q 0 0 0 rg BT 36.00 272.10 Td (\(a\) ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 54.00 272.10 Td (Includes total resecuritization exposures of $39 million with a risk-weighted amount and capital requirement of $232 million and $19 million, respectively) Tj ET Q q 0 0 0 rg BT 517.37 272.10 Td (.) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 36.00 263.10 Td (\(b\) ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 54.00 263.10 Td (Capital requirement is calculated as 8% of risk-weighted assets.) Tj ET Q endstream endobj 25 0 obj <> endobj 26 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 772.60 Td ( ) Tj ET Q q 0 0 0 rg BT 84.50 772.60 Td ( PNC Pillar 3 Standardized Disclosures as of September 30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 748.80 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 24.60 Td (12) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 36.00 747.90 Td (EQUITIES NOT) Tj ET Q q 0 0 0 rg BT 122.81 747.90 Td ( SUBJECT) Tj ET Q q 0 0 0 rg BT 179.61 747.90 Td ( ) Tj ET Q q 0 0 0 rg BT 182.40 747.90 Td (T) Tj ET Q q 0 0 0 rg BT 190.18 747.90 Td (O ) Tj ET Q q 0 0 0 rg BT 202.30 747.90 Td (THE MARKET) Tj ET Q q 0 0 0 rg BT 284.43 747.90 Td ( RISK RULE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 723.90 Td (Equity investment risk is the risk of potential losses associated with investing in both private and public equity markets. Equity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 711.90 Td (investments include investments in unconsolidated subsidiaries, equity and other investments classified within other assets and fund ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 699.90 Td (investments that, in each case, are not a covered position for purposes of the Market Risk Rule nor a securitization exposure. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 675.90 Td (V) Tj ET Q q 0 0 0 rg BT 42.11 675.90 Td (arious PNC business units manage our equity and other investment activities and are responsible for making investment decisions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 663.90 Td (within the approved policy limits and associated guidelines. PNC has established enterprise-wide policies and methodologies to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 651.90 Td (identify) Tj ET Q q 0 0 0 rg BT 66.45 651.90 Td (, measure, monitor and report various types of market risk, including equity investment risk. Market Risk Management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 639.90 Td (provides independent oversight by monitoring compliance with established guidelines and reporting significant risks in the business to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 627.90 Td (the Risk Committee of the Board of Directors. ) Tj ET Q q 0 0 0 rg BT 223.47 627.90 Td (All exposures and corresponding risk-weighted assets are monitored and reported to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 615.90 Td (senior level management committees, including the Basel Compliance Committee and the Executive Capital Committee, on at least a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 603.90 Td (quarterly basis.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 579.90 Td (For additional details on the management of equity investment risk, see the Market Risk Management section in Part II, Item 7 of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 567.90 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 56.00 567.90 Td ( Form 10-K. For additional information on valuation and accounting, see Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.04 567.90 Td (6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.04 567.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.54 567.90 Td (Fair ) Tj ET Q q 0 0 0 rg BT 397.97 567.90 Td (V) Tj ET Q q 0 0 0 rg BT 404.09 567.90 Td (alue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.74 567.90 Td ( in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.35 567.90 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.61 567.90 Td ( Form 10-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 555.90 Td (Q and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.66 555.90 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.66 555.90 Td ( Form 10-K and Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.26 555.90 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.26 555.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.21 555.90 Td (Accounting Policies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.03 555.90 Td ( in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.64 555.90 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.64 555.90 Td ( Form 10-K.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 36.00 531.90 Td (Summary of Equity Investment Exposures) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 507.90 Td (PNC holds the following equity investments that do not meet the qualifications of a covered position under the Market Risk Rule and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 495.90 Td (are not a securitization exposure. Private equity investments are held primarily for capital appreciation purposes. Other equity and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 483.90 Td (investment fund positions are held primarily for reasons other than capital gains, including strategic purposes. Our significant equity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 471.90 Td (exposures include the following investments:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 447.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 447.90 Td (BlackRock see Business Segments Review in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.31 447.90 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.57 447.90 Td ( Form 10-Q and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.23 447.90 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.23 447.90 Td ( Form 10-K for additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 435.90 Td (information about our BlackRock investment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 423.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 423.90 Td (T) Tj ET Q q 0 0 0 rg BT 77.41 423.90 Td (ax Credit Investments see Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.38 423.90 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.38 423.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.88 423.90 Td (Loan Sale and Servicing ) Tj ET Q q 0 0 0 rg BT 319.85 423.90 Td (Activities and ) Tj ET Q q 0 0 0 rg BT 377.99 423.90 Td (V) Tj ET Q q 0 0 0 rg BT 384.10 423.90 Td (ariable Interest Entities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.84 423.90 Td ( in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.45 423.90 Td (September30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 411.90 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.00 411.90 Td ( Form 10-Q and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.66 411.90 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.66 411.90 Td ( Form 10-K for further information on tax credit investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 399.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 399.90 Td (Private Equity see the Market Risk Management section of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.88 399.90 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.14 399.90 Td ( Form 10-Q and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.80 399.90 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.80 399.90 Td ( Form 10-K for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 387.90 Td (more information on private equity investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 375.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 375.90 Td (VISA) Tj ET Q q 0 0 0 rg BT 94.78 375.90 Td ( see the Market Risk Management section of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.17 375.90 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.44 375.90 Td ( Form 10-Q and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.10 375.90 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.10 375.90 Td ( Form 10-K for more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 363.90 Td (information on our ) Tj ET Q q 0 0 0 rg BT 149.86 363.90 Td (VISA) Tj ET Q q 0 0 0 rg BT 172.64 363.90 Td ( investment. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 351.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 351.90 Td (Bank Owned/Company Owned Life Insurance policies that are considered investment funds and qualify as equity exposures ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 339.90 Td (under the regulatory capital framework.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 327.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 327.90 Td (Federal Home Loan Bank and Federal Reserve Bank stock, which are considered equity exposures under the regulatory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 315.90 Td (capital framework.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 291.90 Td (The following tables outline the book and fair values of investments that do not qualify as covered positions:) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 36.00 267.90 Td (T) Tj ET Q q 0 0 0 rg BT 41.19 267.90 Td (able 7: Book V) Tj ET Q q 0 0 0 rg BT 101.47 267.90 Td (alue and Fair V) Tj ET Q q 0 0 0 rg BT 166.21 267.90 Td (alue of Equity Exposures Not Subject to Market Risk Rule) Tj ET Q 0 0 0 RG /GS0 gs 0.25 w 0 i [] 0 d 0 J 0 j 3 M 280.5 257.4 m 290.5 257.4 l s 0 0 0 RG /GS0 gs 0.25 w 0 i [] 0 d 0 J 0 j 3 M 280.5 244.39999999999998 m 290.5 244.39999999999998 l s 0 0 0 RG /GS0 gs 0.25 w 0 i [] 0 d 0 J 0 j 3 M 290.5 257.4 m 421.5 257.4 l s 0 0 0 RG /GS0 gs 0.25 w 0 i [] 0 d 0 J 0 j 3 M 290.5 244.39999999999998 m 421.5 244.39999999999998 l s 0 0 0 RG /GS0 gs 0.25 w 0 i [] 0 d 0 J 0 j 3 M 421.5 257.4 m 431.5 257.4 l s 0 0 0 RG /GS0 gs 0.25 w 0 i [] 0 d 0 J 0 j 3 M 421.5 244.39999999999998 m 431.5 244.39999999999998 l s 0 0 0 RG /GS0 gs 0.25 w 0 i [] 0 d 0 J 0 j 3 M 431.5 257.4 m 435.5 257.4 l s 0 0 0 RG /GS0 gs 0.25 w 0 i [] 0 d 0 J 0 j 3 M 431.5 244.39999999999998 m 435.5 244.39999999999998 l s 0 0 0 RG /GS0 gs 0.25 w 0 i [] 0 d 0 J 0 j 3 M 435.5 257.4 m 566.5 257.4 l s 0 0 0 RG /GS0 gs 0.25 w 0 i [] 0 d 0 J 0 j 3 M 435.5 244.39999999999998 m 566.5 244.39999999999998 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 257.4 m 576.5 244.39999999999998 l s 0 0 0 RG /GS0 gs 0.25 w 0 i [] 0 d 0 J 0 j 3 M 566.5 257.4 m 576.5 257.4 l s 0 0 0 RG /GS0 gs 0.25 w 0 i [] 0 d 0 J 0 j 3 M 566.5 244.39999999999998 m 576.5 244.39999999999998 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 244.39999999999998 m 576.5 231.39999999999998 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 231.39999999999998 m 576.5 218.39999999999998 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 36.5 205.39999999999998 m 280.5 205.39999999999998 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 280.5 205.39999999999998 m 290.5 205.39999999999998 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 290.5 205.39999999999998 m 421.5 205.39999999999998 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 421.5 205.39999999999998 m 431.5 205.39999999999998 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 431.5 205.39999999999998 m 435.5 205.39999999999998 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 435.5 205.39999999999998 m 566.5 205.39999999999998 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 218.39999999999998 m 576.5 205.39999999999998 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 566.5 205.39999999999998 m 576.5 205.39999999999998 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 36.5 192.39999999999998 m 280.5 192.39999999999998 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 280.5 192.39999999999998 m 290.5 192.39999999999998 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 290.5 192.39999999999998 m 421.5 192.39999999999998 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 421.5 192.39999999999998 m 431.5 192.39999999999998 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 431.5 192.39999999999998 m 435.5 192.39999999999998 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 435.5 192.39999999999998 m 566.5 192.39999999999998 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 205.39999999999998 m 576.5 192.39999999999998 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 566.5 192.39999999999998 m 576.5 192.39999999999998 l s BT /F1 7.50 Tf ET q 0 0 0 rg BT 39.00 248.55 Td (In millions) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 396.70 248.52 Td (September) Tj ET Q q 0 0 0 rg BT 431.14 248.52 Td ( 30, 2019) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 39.00 235.80 Td (Equity Exposur) Tj ET Q q 0 0 0 rg BT 99.69 235.80 Td (es) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 333.60 235.80 Td (Book ) Tj ET Q q 0 0 0 rg BT 355.78 235.80 Td (V) Tj ET Q q 0 0 0 rg BT 361.78 235.80 Td (alue) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 480.45 235.80 Td (Fair) Tj ET Q q 0 0 0 rg BT 496.78 235.80 Td ( ) Tj ET Q q 0 0 0 rg BT 498.87 235.80 Td (V) Tj ET Q q 0 0 0 rg BT 504.54 235.80 Td (alue) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 222.66 Td (Publicly traded \(a\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 293.00 222.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.75 222.66 Td (7,965) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 438.00 222.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.25 222.66 Td (16,021) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 209.66 Td (Non-publicly traded) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.75 209.66 Td (8,595) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.75 209.66 Td (8,486) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 39.00 196.80 Td (T) Tj ET Q q 0 0 0 rg BT 44.18 196.80 Td (otal) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 293.00 196.80 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 393.25 196.80 Td (16,560) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 438.00 196.80 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 538.25 196.80 Td (24,507) Tj ET Q BT /F1 10.00 Tf ET BT /F1 7.50 Tf ET q 0 0 0 rg BT 36.00 183.90 Td (\(a\) ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 54.00 183.90 Td (Publicly traded consists primarily of investments in BlackRock.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 159.90 Td (There were no unrealized gains/\(losses\) related to equity exposures included in ) Tj ET Q q 0 0 0 rg BT 354.32 159.90 Td (T) Tj ET Q q 0 0 0 rg BT 360.08 159.90 Td (ier 1 or ) Tj ET Q q 0 0 0 rg BT 391.27 159.90 Td (T) Tj ET Q q 0 0 0 rg BT 397.03 159.90 Td (ier 2 capital as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.39 159.90 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 159.90 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 147.90 Td (Realized gains/\(losses\) from sales and liquidations of equity exposures were $) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.70 147.90 Td (1) Tj ET Q q 0 0 0 rg BT 353.33 147.90 Td (1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.72 147.90 Td ( for the three months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.91 147.90 Td (September30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 135.90 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 56.00 135.90 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 111.90 Td (Latent revaluation gains/\(losses\) are unrealized gains/\(losses\) on non-public equity investments that are recorded at cost. Such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 99.90 Td (unrealized gains/\(losses\) are not recognized in the income statement or through accumulated other comprehensive income. Latent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 87.90 Td (revaluation gains, all on our investment in ) Tj ET Q q 0 0 0 rg BT 206.89 87.90 Td (VISA) Tj ET Q q 0 0 0 rg BT 229.68 87.90 Td ( shares, were $979 million at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.70 87.90 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.97 87.90 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 63.90 Td (PNC uses the Simple Risk ) Tj ET Q q 0 0 0 rg BT 143.89 63.90 Td (W) Tj ET Q q 0 0 0 rg BT 152.52 63.90 Td (eight ) Tj ET Q q 0 0 0 rg BT 174.47 63.90 Td (Approach \(SR) Tj ET Q q 0 0 0 rg BT 231.41 63.90 Td (W) Tj ET Q q 0 0 0 rg BT 239.74 63.90 Td (A\) for its equity investments and either the Simple Modified Look ) Tj ET Q q 0 0 0 rg BT 507.56 63.90 Td (Through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 51.90 Td (Approach \(SML) Tj ET Q q 0 0 0 rg BT 100.90 51.90 Td (T) Tj ET Q q 0 0 0 rg BT 106.21 51.90 Td (A\) or the ) Tj ET Q q 0 0 0 rg BT 144.26 51.90 Td (Alternative Modified Look ) Tj ET Q q 0 0 0 rg BT 254.88 51.90 Td (Through ) Tj ET Q q 0 0 0 rg BT 291.27 51.90 Td (Approach \(AML) Tj ET Q q 0 0 0 rg BT 357.83 51.90 Td (T) Tj ET Q q 0 0 0 rg BT 363.14 51.90 Td (A\) for certain investment funds. ) Tj ET Q endstream endobj 27 0 obj <> endobj 28 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 772.60 Td ( ) Tj ET Q q 0 0 0 rg BT 84.50 772.60 Td ( PNC Pillar 3 Standardized Disclosures as of September 30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 748.80 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 24.60 Td (13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 749.10 Td (The following table outlines the capital requirements of equity investment exposures by risk-weighting:) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 36.00 725.10 Td (T) Tj ET Q q 0 0 0 rg BT 41.19 725.10 Td (able 8: Capital Requirements of Equity Investment Exposures by Risk-W) Tj ET Q q 0 0 0 rg BT 340.18 725.10 Td (eighting) Tj ET Q 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 264.5 714.6 m 364.5 714.6 l s 0 0 0 RG /GS0 gs 0.25 w 0 i [] 0 d 0 J 0 j 3 M 264.5 701.6 m 364.5 701.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 364.5 714.6 m 368.5 714.6 l s 0 0 0 RG /GS0 gs 0.25 w 0 i [] 0 d 0 J 0 j 3 M 364.5 701.6 m 368.5 701.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 368.5 714.6 m 468.5 714.6 l s 0 0 0 RG /GS0 gs 0.25 w 0 i [] 0 d 0 J 0 j 3 M 368.5 701.6 m 468.5 701.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 468.5 714.6 m 472.5 714.6 l s 0 0 0 RG /GS0 gs 0.25 w 0 i [] 0 d 0 J 0 j 3 M 468.5 701.6 m 472.5 701.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 472.5 714.6 m 572.5 714.6 l s 0 0 0 RG /GS0 gs 0.25 w 0 i [] 0 d 0 J 0 j 3 M 472.5 701.6 m 572.5 701.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 714.6 m 576.5 701.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 714.6 m 576.5 714.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 701.6 m 576.5 701.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 701.6 m 576.5 694.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 36.5 687.6 m 264.5 687.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 264.5 687.6 m 364.5 687.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 364.5 687.6 m 368.5 687.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 368.5 687.6 m 468.5 687.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 468.5 687.6 m 472.5 687.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 472.5 687.6 m 572.5 687.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 694.6 m 576.5 687.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 687.6 m 576.5 687.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 687.6 m 576.5 674.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 674.6 m 576.5 661.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 661.6 m 576.5 648.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 648.6 m 576.5 635.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 635.6 m 576.5 622.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 264.5 609.6 m 364.5 609.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 368.5 609.6 m 468.5 609.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 472.5 609.6 m 572.5 609.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 622.6 m 576.5 609.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 36.5 609.6 m 264.5 609.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 36.5 596.6 m 264.5 596.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 264.5 609.6 m 364.5 609.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 264.5 596.6 m 364.5 596.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 364.5 609.6 m 368.5 609.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 364.5 596.6 m 368.5 596.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 368.5 609.6 m 468.5 609.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 368.5 596.6 m 468.5 596.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 468.5 609.6 m 472.5 609.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 468.5 596.6 m 472.5 596.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 472.5 609.6 m 572.5 609.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 472.5 596.6 m 572.5 596.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 609.6 m 576.5 596.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 609.6 m 576.5 609.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 596.6 m 576.5 596.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 596.6 m 576.5 586.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 586.6 m 576.5 573.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 264.5 560.6 m 364.5 560.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 368.5 560.6 m 468.5 560.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 472.5 560.6 m 572.5 560.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 573.6 m 576.5 560.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 36.5 560.6 m 264.5 560.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 36.5 547.6 m 264.5 547.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 264.5 560.6 m 364.5 560.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 264.5 547.6 m 364.5 547.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 364.5 560.6 m 368.5 560.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 364.5 547.6 m 368.5 547.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 368.5 560.6 m 468.5 560.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 368.5 547.6 m 468.5 547.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 468.5 560.6 m 472.5 560.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 468.5 547.6 m 472.5 547.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 472.5 560.6 m 572.5 560.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 472.5 547.6 m 572.5 547.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 560.6 m 576.5 547.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 560.6 m 576.5 560.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 547.6 m 576.5 547.6 l s BT /F2 7.50 Tf ET q 0 0 0 rg BT 386.70 705.72 Td (September) Tj ET Q q 0 0 0 rg BT 421.21 705.72 Td ( 30, 2019) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 39.00 691.75 Td (In millions) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 285.20 691.72 Td (Exposur) Tj ET Q q 0 0 0 rg BT 312.23 691.72 Td (e Balance) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 378.20 691.72 Td (Risk-W) Tj ET Q q 0 0 0 rg BT 402.58 691.72 Td (eighted ) Tj ET Q q 0 0 0 rg BT 427.38 691.72 Td (Assets \(a\)) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 482.65 691.72 Td (Capital Requir) Tj ET Q q 0 0 0 rg BT 530.64 691.72 Td (ement \(b\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 39.00 679.00 Td (Simple Risk ) Tj ET Q q 0 0 0 rg BT 87.43 679.00 Td (W) Tj ET Q q 0 0 0 rg BT 96.10 679.00 Td (eight ) Tj ET Q q 0 0 0 rg BT 116.85 679.00 Td (Appr) Tj ET Q q 0 0 0 rg BT 137.03 679.00 Td (oach \(SR) Tj ET Q q 0 0 0 rg BT 171.54 679.00 Td (W) Tj ET Q q 0 0 0 rg BT 179.88 679.00 Td (A\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 46.00 665.86 Td (0% Risk ) Tj ET Q q 0 0 0 rg BT 78.92 665.86 Td (W) Tj ET Q q 0 0 0 rg BT 86.97 665.86 Td (eight) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 267.00 665.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 344.50 665.86 Td (858) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 46.00 652.86 Td (20% Risk ) Tj ET Q q 0 0 0 rg BT 83.42 652.86 Td (W) Tj ET Q q 0 0 0 rg BT 91.47 652.86 Td (eight) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 337.75 652.86 Td (1,120) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 371.00 652.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 448.50 652.86 Td (224) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.00 652.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 557.00 652.86 Td (18) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 46.00 639.86 Td (100% Risk ) Tj ET Q q 0 0 0 rg BT 87.92 639.86 Td (W) Tj ET Q q 0 0 0 rg BT 95.97 639.86 Td (eight) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 337.75 639.86 Td (3,131) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 441.75 639.86 Td (3,131) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 552.50 639.86 Td (250) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 46.00 626.86 Td (250% Risk ) Tj ET Q q 0 0 0 rg BT 87.92 626.86 Td (W) Tj ET Q q 0 0 0 rg BT 95.97 626.86 Td (eight \(c\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 337.75 626.86 Td (4,474) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 437.25 626.86 Td (1) Tj ET Q q 0 0 0 rg BT 441.75 626.86 Td (1,184) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 552.50 626.86 Td (895) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 46.00 613.86 Td (600% Risk ) Tj ET Q q 0 0 0 rg BT 87.84 613.86 Td (W) Tj ET Q q 0 0 0 rg BT 95.61 613.86 Td (eight) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 344.50 613.86 Td (169) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 441.75 613.86 Td (1,014) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 557.00 613.86 Td (81) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 39.00 601.00 Td (Sub-T) Tj ET Q q 0 0 0 rg BT 62.60 601.00 Td (otal SR) Tj ET Q q 0 0 0 rg BT 90.28 601.00 Td (W) Tj ET Q q 0 0 0 rg BT 98.63 601.00 Td (A) Tj ET Q q 0 0 0 rg BT 104.38 601.00 Td ( Equity Exposur) Tj ET Q q 0 0 0 rg BT 167.07 601.00 Td (es) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 267.00 601.00 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 337.75 601.00 Td (9,752) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 371.00 601.00 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 437.25 601.00 Td (15,553) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 475.00 601.00 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 545.75 601.00 Td (1,244) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 39.00 578.00 Td (Simple Modified Look ) Tj ET Q q 0 0 0 rg BT 127.18 578.00 Td (Thr) Tj ET Q q 0 0 0 rg BT 142.02 578.00 Td (ough ) Tj ET Q q 0 0 0 rg BT 162.95 578.00 Td (Appr) Tj ET Q q 0 0 0 rg BT 183.13 578.00 Td (oach \(SML) Tj ET Q q 0 0 0 rg BT 225.38 578.00 Td (T) Tj ET Q q 0 0 0 rg BT 230.64 578.00 Td (A\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 344.50 577.86 Td (171) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 448.50 577.86 Td (686) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 557.00 577.86 Td (55) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 39.00 565.00 Td (Alternative Modified Look ) Tj ET Q q 0 0 0 rg BT 144.16 565.00 Td (Thr) Tj ET Q q 0 0 0 rg BT 159.00 565.00 Td (ough ) Tj ET Q q 0 0 0 rg BT 179.93 565.00 Td (Appr) Tj ET Q q 0 0 0 rg BT 200.11 565.00 Td (oach \(AML) Tj ET Q q 0 0 0 rg BT 243.86 565.00 Td (T) Tj ET Q q 0 0 0 rg BT 249.11 565.00 Td (A\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 337.75 564.86 Td (2,920) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 441.75 564.86 Td (2,152) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 552.50 564.86 Td (172) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 39.00 552.00 Td (T) Tj ET Q q 0 0 0 rg BT 44.18 552.00 Td (otal) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 267.00 552.00 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 333.25 552.00 Td (12,843) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 371.00 552.00 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 437.25 552.00 Td (18,391) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 475.00 552.00 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 545.75 552.00 Td (1,471) Tj ET Q BT /F1 10.00 Tf ET BT /F1 7.50 Tf ET q 0 0 0 rg BT 36.00 539.10 Td (\(a\) ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 54.00 539.10 Td (Includes both on- and of) Tj ET Q q 0 0 0 rg BT 127.18 539.10 Td (f-balance sheet amounts.) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 36.00 530.10 Td (\(b\) ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 54.00 530.10 Td (Capital requirement is calculated as 8% of risk-weighted assets.) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 36.00 521.10 Td (\(c\) ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 54.00 521.10 Td (Includes significant investments in unconsolidated financial institutions in the form of common stock, which are not deducted from Common Equity ) Tj ET Q q 0 0 0 rg BT 501.50 521.10 Td (T) Tj ET Q q 0 0 0 rg BT 505.82 521.10 Td (ier 1.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 36.00 494.70 Td (MARKET) Tj ET Q q 0 0 0 rg BT 89.78 494.70 Td ( RISK CAPIT) Tj ET Q q 0 0 0 rg BT 161.57 494.70 Td (AL) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 470.70 Td (The U.S. banking agencies) Tj ET Q q 0 0 0 rg BT 146.06 470.70 Td ( market risk capital rules define the types of positions that are subject to the market risk capital framework ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 458.70 Td (\(referred to as covered positions\). Covered positions are generally defined as those positions that are held \(i\) for the purpose of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 446.70 Td (short-term resale, \(ii\) with the intent of benefiting from actual or expected short-term price movements, \(iii\) to lock in arbitrage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 434.70 Td (profits, or \(iv\) in order to hedge any of these types of positions. In addition, subject to certain exceptions, foreign exchange and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 422.70 Td (commodity positions are considered covered positions. Characterization of a position as trading for purposes of GAAP) Tj ET Q q 0 0 0 rg BT 519.96 422.70 Td ( is not on its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 410.70 Td (own suf) Tj ET Q q 0 0 0 rg BT 67.76 410.70 Td (ficient to classify the position as a covered position. ) Tj ET Q q 0 0 0 rg BT 277.16 410.70 Td (As a result, certain positions classified as trading under GAAP) Tj ET Q q 0 0 0 rg BT 527.29 410.70 Td ( for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 398.70 Td (financial statement presentation are not subject to the regulatory market risk capital framework. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 374.70 Td (Our covered positions primarily arise from the underwriting, investing and risk management services we provide to our customers and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 362.70 Td (associated market risk mitigating hedge activities. Our covered positions are measured and reported in our financial statements at fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 350.70 Td (value. ) Tj ET Q q 0 0 0 rg BT 62.47 350.70 Td (The products that make up our covered positions are primarily fixed income securities, interest rate derivatives and foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 338.70 Td (exchange derivatives. ) Tj ET Q q 0 0 0 rg BT 124.95 338.70 Td (The fixed income securities include mortgage-backed securities and municipal securities. Interest rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 326.70 Td (derivatives include interest rate swaps, swaptions, caps and floors. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 36.00 302.70 Td (Governance of Covered Positions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 278.70 Td (PNC has established a Covered Position ) Tj ET Q q 0 0 0 rg BT 199.14 278.70 Td (W) Tj ET Q q 0 0 0 rg BT 207.78 278.70 Td (orking Group to provide governance over the identification of covered positions, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 266.70 Td (reviewing our compliance with policies governing management of covered positions. ) Tj ET Q q 0 0 0 rg BT 381.83 266.70 Td (The Covered Positions ) Tj ET Q q 0 0 0 rg BT 475.26 266.70 Td (W) Tj ET Q q 0 0 0 rg BT 483.90 266.70 Td (orking Group is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 254.70 Td (composed of representatives from the areas of business, risk and finance, and is subject to oversight by the Basel Compliance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 242.70 Td (Committee.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 36.00 218.70 Td (V) Tj ET Q q 0 0 0 rg BT 41.56 218.70 Td (aluation Policies, Procedures & Methodologies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 194.70 Td (For details regarding our valuation policies, procedures, and methodologies, please see Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.84 194.70 Td (6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.84 194.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.34 194.70 Td (Fair ) Tj ET Q q 0 0 0 rg BT 433.76 194.70 Td (V) Tj ET Q q 0 0 0 rg BT 439.88 194.70 Td (alue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.53 194.70 Td ( in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.14 194.70 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 565.40 194.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 182.70 Td (Form 10-Q and in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.27 182.70 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.27 182.70 Td ( Form 10-K. For details regarding the risks associated with our valuation policies, procedures, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 170.70 Td (methodologies, please see Item 1A) Tj ET Q q 0 0 0 rg BT 175.13 170.70 Td ( Risk Factors in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.52 170.70 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.52 170.70 Td ( Form 10-K.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 36.00 146.70 Td (V) Tj ET Q q 0 0 0 rg BT 41.56 146.70 Td (alue at Risk \(V) Tj ET Q q 0 0 0 rg BT 101.85 146.70 Td (aR\) Models) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 122.70 Td (Our primary metrics used to measure the market risk of our covered position activity are ) Tj ET Q q 0 0 0 rg BT 392.09 122.70 Td (V) Tj ET Q q 0 0 0 rg BT 398.21 122.70 Td (alue at Risk \(V) Tj ET Q q 0 0 0 rg BT 457.36 122.70 Td (aR\) and Stressed ) Tj ET Q q 0 0 0 rg BT 526.89 122.70 Td (V) Tj ET Q q 0 0 0 rg BT 533.00 122.70 Td (aR ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 110.70 Td (\(sV) Tj ET Q q 0 0 0 rg BT 49.33 110.70 Td (aR\). ) Tj ET Q q 0 0 0 rg BT 68.59 110.70 Td (V) Tj ET Q q 0 0 0 rg BT 74.71 110.70 Td (aR is a statistically-based measure of risk that estimates the amount of potential loss that may be incurred due to adverse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 98.70 Td (market movements. ) Tj ET Q q 0 0 0 rg BT 117.19 98.70 Td (The measure is of the maximum loss that should not be exceeded on 99 out of 100 days for a 99% ) Tj ET Q q 0 0 0 rg BT 511.64 98.70 Td (V) Tj ET Q q 0 0 0 rg BT 517.75 98.70 Td (aR. Market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 86.70 Td (Risk Management \(MRM\) performs a ) Tj ET Q q 0 0 0 rg BT 190.51 86.70 Td (V) Tj ET Q q 0 0 0 rg BT 196.63 86.70 Td (aR and sV) Tj ET Q q 0 0 0 rg BT 237.18 86.70 Td (aR calculation on a daily basis using a historical ) Tj ET Q q 0 0 0 rg BT 432.23 86.70 Td (V) Tj ET Q q 0 0 0 rg BT 438.34 86.70 Td (aR methodology) Tj ET Q q 0 0 0 rg BT 504.07 86.70 Td (. 10-day ) Tj ET Q q 0 0 0 rg BT 539.16 86.70 Td (V) Tj ET Q q 0 0 0 rg BT 545.27 86.70 Td (aR and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 74.70 Td (sV) Tj ET Q q 0 0 0 rg BT 46.00 74.70 Td (aR are calculated at the 99% confidence interval by converting from corresponding daily measures while accounting for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 62.70 Td (autocorrelation and mean-reversion. ) Tj ET Q q 0 0 0 rg BT 182.98 62.70 Td (V) Tj ET Q q 0 0 0 rg BT 189.09 62.70 Td (aR is calculated using a look-back period of 500 days with market data and sensitivities updated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 50.70 Td (daily) Tj ET Q q 0 0 0 rg BT 55.35 50.70 Td (, while sV) Tj ET Q q 0 0 0 rg BT 95.07 50.70 Td (aR is computed based on a 250-day period of significant stress \(Stress Period\) which remains constant through the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 38.70 Td (quarter) Tj ET Q q 0 0 0 rg BT 63.76 38.70 Td (. ) Tj ET Q q 0 0 0 rg BT 68.58 38.70 Td (The chosen Stress Period is designed to capture the buildup of volatility and profit and loss \(P&L\) distribution widening. ) Tj ET Q q 0 0 0 rg BT 554.44 38.70 Td (The ) Tj ET Q endstream endobj 29 0 obj <> endobj 30 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 772.60 Td ( ) Tj ET Q q 0 0 0 rg BT 84.50 772.60 Td ( PNC Pillar 3 Standardized Disclosures as of September 30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 748.80 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 24.60 Td (14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 749.10 Td (selected 250-day stress period is monitored by MRM and is updated quarterly) Tj ET Q q 0 0 0 rg BT 346.67 749.10 Td (. ) Tj ET Q q 0 0 0 rg BT 351.49 749.10 Td (The models used to measure ) Tj ET Q q 0 0 0 rg BT 467.67 749.10 Td (V) Tj ET Q q 0 0 0 rg BT 473.78 749.10 Td (aR and sV) Tj ET Q q 0 0 0 rg BT 514.33 749.10 Td (aR take into ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 737.10 Td (account the following key market risk factors: interest rates, credit spreads, foreign exchange rates, mortgage rate basis, and implied ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 725.10 Td (interest rate and foreign exchange volatilities. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 701.10 Td (For the three months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.92 701.10 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.18 701.10 Td (, our ) Tj ET Q q 0 0 0 rg BT 248.83 701.10 Td (V) Tj ET Q q 0 0 0 rg BT 254.95 701.10 Td (aR and sV) Tj ET Q q 0 0 0 rg BT 295.50 701.10 Td (aR metrics were as follows:) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 36.00 677.10 Td (T) Tj ET Q q 0 0 0 rg BT 41.19 677.10 Td (able 9: V) Tj ET Q q 0 0 0 rg BT 77.30 677.10 Td (aR-Based Metrics \(a\)) Tj ET Q 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 36.5 666.6 m 185.5 666.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 185.5 666.6 m 279.5 666.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 279.5 666.6 m 283.5 666.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 283.5 666.6 m 376.5 666.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 376.5 666.6 m 380.5 666.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 380.5 666.6 m 474.5 666.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 474.5 666.6 m 478.5 666.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 478.5 666.6 m 572.5 666.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 666.6 m 576.5 653.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 666.6 m 576.5 666.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 36.5 640.6 m 185.5 640.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 185.5 640.6 m 279.5 640.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 279.5 640.6 m 283.5 640.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 283.5 640.6 m 376.5 640.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 376.5 640.6 m 380.5 640.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 380.5 640.6 m 474.5 640.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 474.5 640.6 m 478.5 640.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 478.5 640.6 m 572.5 640.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 653.6 m 576.5 640.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 640.6 m 576.5 640.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 185.5 640.6 m 279.5 640.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 279.5 640.6 m 283.5 640.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 283.5 640.6 m 376.5 640.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 376.5 640.6 m 380.5 640.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 380.5 640.6 m 474.5 640.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 474.5 640.6 m 478.5 640.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 478.5 640.6 m 572.5 640.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 640.6 m 576.5 627.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 627.6 m 576.5 614.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 614.6 m 576.5 601.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 601.6 m 576.5 588.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 588.6 m 576.5 575.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 575.6 m 576.5 562.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 562.6 m 576.5 549.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 36.5 536.6 m 185.5 536.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 185.5 536.6 m 279.5 536.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 279.5 536.6 m 283.5 536.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 283.5 536.6 m 376.5 536.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 376.5 536.6 m 380.5 536.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 380.5 536.6 m 474.5 536.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 474.5 536.6 m 478.5 536.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 478.5 536.6 m 572.5 536.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 576.5 549.6 m 576.5 536.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 572.5 536.6 m 576.5 536.6 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 41.00 657.86 Td (September 30, 2019) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 201.05 644.72 Td (Cr) Tj ET Q q 0 0 0 rg BT 209.73 644.72 Td (edit Spr) Tj ET Q q 0 0 0 rg BT 235.22 644.72 Td (ead Risk) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 300.40 644.72 Td (Inter) Tj ET Q q 0 0 0 rg BT 316.58 644.72 Td (est Rate Risk) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 389.75 644.72 Td (For) Tj ET Q q 0 0 0 rg BT 401.27 644.72 Td (eign Exchange Risk) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 497.80 644.72 Td (Overall Portfolio) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 41.00 644.72 Td (In millions) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 41.00 631.86 Td (Min ) Tj ET Q q 0 0 0 rg BT 58.17 631.86 Td (V) Tj ET Q q 0 0 0 rg BT 64.09 631.86 Td (aR \(b\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 190.00 631.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 257.75 631.86 Td (0.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 288.00 631.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 354.75 631.86 Td (0.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 385.00 631.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.75 631.86 Td (0.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.00 631.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.75 631.86 Td (2.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 41.00 618.86 Td (Max ) Tj ET Q q 0 0 0 rg BT 59.67 618.86 Td (V) Tj ET Q q 0 0 0 rg BT 65.58 618.86 Td (aR \(b\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 190.00 618.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 257.75 618.86 Td (2.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 288.00 618.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 354.75 618.86 Td (0.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 385.00 618.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.75 618.86 Td (0.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.00 618.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.75 618.86 Td (3.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 41.00 605.86 Td (A) Tj ET Q q 0 0 0 rg BT 47.17 605.86 Td (verage \(Mean\) ) Tj ET Q q 0 0 0 rg BT 101.72 605.86 Td (V) Tj ET Q q 0 0 0 rg BT 107.64 605.86 Td (aR) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 190.00 605.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 257.75 605.86 Td (1.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 288.00 605.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 354.75 605.86 Td (0.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 385.00 605.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.75 605.86 Td (0.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.00 605.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.75 605.86 Td (2.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 41.00 592.86 Td (Period End ) Tj ET Q q 0 0 0 rg BT 83.41 592.86 Td (V) Tj ET Q q 0 0 0 rg BT 89.33 592.86 Td (aR) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 190.00 592.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 257.75 592.86 Td (1.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 288.00 592.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 354.75 592.86 Td (0.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 385.00 592.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.75 592.86 Td (0.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.00 592.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.75 592.86 Td (3.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 41.00 579.86 Td (Min SV) Tj ET Q q 0 0 0 rg BT 69.26 579.86 Td (aR \(b\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 190.00 579.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 257.75 579.86 Td (3.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 288.00 579.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 354.75 579.86 Td (1.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 385.00 579.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.75 579.86 Td (3.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.00 579.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 546.25 579.86 Td (10.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 41.00 566.86 Td (Max SV) Tj ET Q q 0 0 0 rg BT 70.75 566.86 Td (aR \(b\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 190.00 566.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 257.75 566.86 Td (7.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 288.00 566.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 354.75 566.86 Td (8.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 385.00 566.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.75 566.86 Td (5.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.00 566.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 546.25 566.86 Td (19.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 41.00 553.86 Td (A) Tj ET Q q 0 0 0 rg BT 47.17 553.86 Td (verage \(Mean\) SV) Tj ET Q q 0 0 0 rg BT 112.80 553.86 Td (aR) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 190.00 553.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 257.75 553.86 Td (5.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 288.00 553.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 354.75 553.86 Td (2.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 385.00 553.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.75 553.86 Td (4.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.00 553.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 546.25 553.86 Td (12.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 41.00 540.86 Td (Period End SV) Tj ET Q q 0 0 0 rg BT 94.00 540.86 Td (aR) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 190.00 540.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 257.75 540.86 Td (6.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 288.00 540.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 354.75 540.86 Td (3.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 385.00 540.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.75 540.86 Td (5.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.00 540.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 546.25 540.86 Td (14.8) Tj ET Q BT /F1 10.00 Tf ET BT /F1 7.50 Tf ET q 0 0 0 rg BT 36.00 528.10 Td (\(a\) ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 54.00 528.10 Td (There were no covered positions subject to equity price risk for the three months ended ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 317.47 528.10 Td (September30, 2019) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 377.67 528.10 Td (.) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 36.00 519.10 Td (\(b\) ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 54.00 519.10 Td (The minimum and maximum for the overall portfolio may have occurred on dif) Tj ET Q q 0 0 0 rg BT 292.55 519.10 Td (ferent trading days than the minimum and maximum for the individual components. ) Tj ET Q q 0 0 0 rg BT 546.33 519.10 Td (Thus, the ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 54.00 510.10 Td (minimum and maximum for the overall portfolio will not equal the sum of the individual components.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 486.10 Td (For calculating market risk regulatory capital, daily ) Tj ET Q q 0 0 0 rg BT 244.08 486.10 Td (V) Tj ET Q q 0 0 0 rg BT 250.19 486.10 Td (aRs assume a zero diversification benefit. ) Tj ET Q q 0 0 0 rg BT 419.12 486.10 Td (W) Tj ET Q q 0 0 0 rg BT 427.76 486.10 Td (e use the standardized measurement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 474.10 Td (method, as defined by the Market Risk Rule, to determine the specific risk char) Tj ET Q q 0 0 0 rg BT 353.23 474.10 Td (ge for our covered positions and therefore we are not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 462.10 Td (required to calculate and hold incremental risk capital. In addition, our trading policies do not permit the conduct of correlation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 450.10 Td (trading. ) Tj ET Q q 0 0 0 rg BT 69.14 450.10 Td (Therefore, we are not required to calculate and hold comprehensive risk capital for our covered positions. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 36.00 426.10 Td (Back T) Tj ET Q q 0 0 0 rg BT 64.80 426.10 Td (esting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 402.10 Td (T) Tj ET Q q 0 0 0 rg BT 41.41 402.10 Td (o help ensure the integrity of the models used to calculate ) Tj ET Q q 0 0 0 rg BT 274.21 402.10 Td (V) Tj ET Q q 0 0 0 rg BT 280.33 402.10 Td (aR for our portfolio of covered positions, we use a back testing process, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 390.10 Td (which consists of comparing actual observations of gains or losses against the ) Tj ET Q q 0 0 0 rg BT 349.64 390.10 Td (V) Tj ET Q q 0 0 0 rg BT 355.76 390.10 Td (aR levels that were calculated at the close of the prior ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 378.10 Td (day) Tj ET Q q 0 0 0 rg BT 49.79 378.10 Td (. ) Tj ET Q q 0 0 0 rg BT 54.24 378.10 Td (Actual gains and losses for these purposes is calculated by holding end-of-day positions constant, and excludes fees, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 366.10 Td (commissions, reserves, net interest income, income from customer transactions and intraday trading in order to isolate the impact of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 354.10 Td (market price changes on end-of-day positions. Because of these adjustments, actual gains or losses for purposes of back testing is also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 342.10 Td (referred to as Clean P&L. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 318.10 Td (W) Tj ET Q q 0 0 0 rg BT 44.64 318.10 Td (e utilize a variety of market risk measures to monitor covered activities, as identified within our MRM policies and utilize the same ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 306.10 Td (measures to identify significant outliers. Model owners assess the results of the back testing to verify that the models are performing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 294.10 Td (as expected. In addition, model owners monitor PNC) Tj ET Q q 0 0 0 rg BT 251.24 294.10 Td (s sensitivity to changes in market risk factors on a daily basis. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 270.10 Td (The following graph shows a comparison of actual gains and losses against prior) Tj ET Q q 0 0 0 rg BT 358.50 270.10 Td (-day non-diversified ) Tj ET Q q 0 0 0 rg BT 442.19 270.10 Td (V) Tj ET Q q 0 0 0 rg BT 448.30 270.10 Td (aR for the period. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 258.10 Td (second quarter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.08 258.10 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.08 258.10 Td ( there were no back testing exceptions for our overall portfolio of covered positions.) Tj ET Q /GS0 gs q 316.00 0 0 189.00 36.00 52.10 cm /I2 Do Q BT /F1 10.00 Tf ET endstream endobj 31 0 obj <> endobj 32 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 772.60 Td ( ) Tj ET Q q 0 0 0 rg BT 84.50 772.60 Td ( PNC Pillar 3 Standardized Disclosures as of September 30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 748.80 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 24.60 Td (15) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 36.00 737.25 Td (Model ) Tj ET Q q 0 0 0 rg BT 64.61 737.25 Td (V) Tj ET Q q 0 0 0 rg BT 70.17 737.25 Td (alidation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 713.25 Td (The Model Risk Management Group performs independent validations to evaluate the conceptual framework used by the ) Tj ET Q q 0 0 0 rg BT 523.45 713.25 Td (V) Tj ET Q q 0 0 0 rg BT 529.56 713.25 Td (aR and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 701.25 Td (sV) Tj ET Q q 0 0 0 rg BT 46.00 701.25 Td (aR models \(e.g., historical simulation\), the assumptions underlying the models, the suf) Tj ET Q q 0 0 0 rg BT 391.88 701.25 Td (ficiency and completeness of the risk factors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 689.25 Td (identified as key risk drivers, as well as the suf) Tj ET Q q 0 0 0 rg BT 222.99 689.25 Td (ficiency and accuracy of the historical market data used in the models. Part of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 677.25 Td (evaluation considers the approach used in the ) Tj ET Q q 0 0 0 rg BT 219.93 677.25 Td (V) Tj ET Q q 0 0 0 rg BT 226.04 677.25 Td (aR and sV) Tj ET Q q 0 0 0 rg BT 266.59 677.25 Td (aR calculations, assesses the parameters used in the models, the accuracy of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 665.25 Td (estimated profit and loss amounts, as well as the extent to which they may be auto-correlated, and corresponding adjustments.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 36.00 641.25 Td (Stress T) Tj ET Q q 0 0 0 rg BT 68.14 641.25 Td (esting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 617.25 Td (MRM performs daily stress-testing of covered positions based on six dif) Tj ET Q q 0 0 0 rg BT 325.22 617.25 Td (ferent historical stress periods. Stress testing is dif) Tj ET Q q 0 0 0 rg BT 525.57 617.25 Td (ferent from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 605.25 Td (V) Tj ET Q q 0 0 0 rg BT 42.11 605.25 Td (aR which estimates a potential one day loss in a normal market environment. It is designed to measure potential losses due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 593.25 Td (extreme market movements so it is an additional risk management tool that allows PNC to assess its market risk exposure relative to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 581.25 Td (its risk appetite. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 557.25 Td (The stress tests employed use one-day market movements representative of market behavior during each of the historical stress ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 545.25 Td (periods. ) Tj ET Q q 0 0 0 rg BT 70.26 545.25 Td (The P&L) Tj ET Q q 0 0 0 rg BT 107.38 545.25 Td ( estimate for each scenario is treated as an instantaneous shock for each trading desk. ) Tj ET Q q 0 0 0 rg BT 449.85 545.25 Td (W) Tj ET Q q 0 0 0 rg BT 458.49 545.25 Td (e consider the following risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 533.25 Td (factors in performing our daily stress-testing: interest rates, credit spreads, foreign exchange rates, mortgage rate basis and implied ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 521.25 Td (interest rate volatility) Tj ET Q q 0 0 0 rg BT 120.88 521.25 Td (. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 36.00 497.25 Td (Securitization Positions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 473.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.44 473.25 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.71 473.25 Td (, we had no material securitization positions that were covered positions under the Market Risk Rule. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 461.25 Td (Information on securitization positions is shared with Market Risk Management monthly and balances are validated quarterly as part ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 449.25 Td (of the market risk capital char) Tj ET Q q 0 0 0 rg BT 155.49 449.25 Td (ge calculation process. MRM uses the same ) Tj ET Q q 0 0 0 rg BT 333.04 449.25 Td (V) Tj ET Q q 0 0 0 rg BT 339.15 449.25 Td (aR metrics as described within the ) Tj ET Q q 0 0 0 rg BT 478.93 449.25 Td (V) Tj ET Q q 0 0 0 rg BT 485.05 449.25 Td (alue at Risk \(V) Tj ET Q q 0 0 0 rg BT 544.20 449.25 Td (aR\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 437.25 Td (Models section of this report to monitor and measure changes to market risk daily in PNC) Tj ET Q q 0 0 0 rg BT 398.43 437.25 Td (s securitization positions. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 413.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.44 413.25 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.71 413.25 Td (, we do not hold any covered positions that are re-securitization positions as defined by the Market Risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 401.25 Td (Rule, and) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 0 0 rg BT 74.33 401.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 76.83 401.25 Td (our trading desks currently do not purchase credit protection for securitization positions.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 36.00 372.45 Td (INTEREST) Tj ET Q q 0 0 0 rg BT 96.47 372.45 Td ( RA) Tj ET Q q 0 0 0 rg BT 115.92 372.45 Td (TE RISK FOR NON-TRADING ) Tj ET Q q 0 0 0 rg BT 285.27 372.45 Td (ACTIVITIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 348.45 Td (Interest rate risk results primarily from our traditional banking activities of gathering deposits and extending loans. Many factors, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 336.45 Td (including economic and financial conditions, movements in interest rates and consumer preferences, af) Tj ET Q q 0 0 0 rg BT 447.90 336.45 Td (fect the dif) Tj ET Q q 0 0 0 rg BT 491.03 336.45 Td (ference between the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 324.45 Td (interest that we earn on assets and the interest that we pay on liabilities and the level of our noninterest-bearing funding sources. Due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 312.45 Td (to the repricing term mismatches and embedded options inherent in certain of these products, changes in market interest rates not only ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 300.45 Td (af) Tj ET Q q 0 0 0 rg BT 43.59 300.45 Td (fect expected near) Tj ET Q q 0 0 0 rg BT 116.11 300.45 Td (-term earnings, but also the economic values of these assets and liabilities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 276.45 Td (For further information on interest rate risk, including an interest sensitivity analysis, see Market Risk Management - Interest Rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 264.45 Td (Risk in the Risk Management section in Part I, Item 2 of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.40 264.45 Td (September30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.67 264.45 Td ( Form 10-Q.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 36.00 238.05 Td (GLOSSAR) Tj ET Q q 0 0 0 rg BT 92.93 238.05 Td (Y) Tj ET Q q 0 0 0 rg BT 101.15 238.05 Td ( OF) Tj ET Q q 0 0 0 rg BT 120.37 238.05 Td ( ) Tj ET Q q 0 0 0 rg BT 123.15 238.05 Td (TERMS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 214.05 Td (This Glossary defines terms related to the Pillar 3 Report. For additional definitions of terms, refer to the Glossary in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.23 214.05 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.23 214.05 Td ( Form ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 202.05 Td (10-K. ) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 36 176.71699218749995 m 265.43359375 176.71699218749995 l s q 0 0 0 rg BT 36.00 178.05 Td (Alternative Modified Look ) Tj ET Q q 0 0 0 rg BT 146.63 178.05 Td (Through ) Tj ET Q q 0 0 0 rg BT 183.01 178.05 Td (Approach \(AML) Tj ET Q q 0 0 0 rg BT 249.57 178.05 Td (T) Tj ET Q q 0 0 0 rg BT 254.88 178.05 Td (A\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.43 178.05 Td ( Under this approach, a banking or) Tj ET Q q 0 0 0 rg BT 411.32 178.05 Td (ganization assigns the adjusted carrying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 166.05 Td (value of an equity exposure to an investment fund on a pro rata basis to dif) Tj ET Q q 0 0 0 rg BT 334.91 166.05 Td (ferent risk weight categories based on the investment limits ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 154.05 Td (described in the fund) Tj ET Q q 0 0 0 rg BT 122.92 154.05 Td (s prospectus. ) Tj ET Q q 0 0 0 rg BT 176.90 154.05 Td (The banking or) Tj ET Q q 0 0 0 rg BT 237.81 154.05 Td (ganization) Tj ET Q q 0 0 0 rg BT 282.24 154.05 Td (s risk-weighted asset amount is the sum of each portion of the adjusted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 142.05 Td (carrying value assigned to an exposure type multiplied by the applicable risk weight. For purposes of the calculation the banking ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 130.05 Td (or) Tj ET Q q 0 0 0 rg BT 44.15 130.05 Td (ganization must assume the fund is invested in assets with the highest risk weight permitted by its prospectus and to the maximum ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 118.05 Td (amounts permitted.) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 36 92.71699218749995 m 105.1650390625 92.71699218749995 l s q 0 0 0 rg BT 36.00 94.05 Td (Covered Position) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.17 94.05 Td ( ) Tj ET Q q 0 0 0 rg BT 114.98 94.05 Td (The Market Risk Rule defines the types of positions that are subject to the market risk capital framework \(referred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 82.05 Td (to as covered positions\). Covered positions are generally defined as those positions that are held \(i\) for the purpose of short-term ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 70.05 Td (resale, \(ii\) with the intent of benefiting from actual or expected short-term price movements, \(iii\) to lock in arbitrage profits, or \(iv\) in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 58.05 Td (order to hedge any of these types of positions. In addition, subject to certain exceptions, foreign exchange and commodity positions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 46.05 Td (are considered covered positions.) Tj ET Q endstream endobj 33 0 obj <> endobj 34 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 772.60 Td ( ) Tj ET Q q 0 0 0 rg BT 84.50 772.60 Td ( PNC Pillar 3 Standardized Disclosures as of September 30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 748.80 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 24.60 Td (16) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 36 735.7669921875 m 141.5419921875 735.7669921875 l s q 0 0 0 rg BT 36.00 737.10 Td (Credit Equivalent ) Tj ET Q q 0 0 0 rg BT 108.76 737.10 Td (Amount) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.54 737.10 Td ( Carrying value \(including net accrued but unpaid interest and fees\) for the exposure or segment less any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 725.10 Td (allocated transfer risk reserve for the exposure or segment for on-balance sheet exposures. For of) Tj ET Q q 0 0 0 rg BT 426.22 725.10 Td (f-balance sheet exposures, credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 713.10 Td (equivalent amount is the best estimate of net additions to the outstanding amount owed the bank, including estimated future additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 701.10 Td (draws of principal and accrued but unpaid interest and fees, that are likely to occur over a one-year horizon assuming default, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 689.10 Td (potential future exposure of derivative contracts. Certain counterparty exposure credit equivalent amounts can be reduced by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 677.10 Td (recognizing the credit loss mitigation benefits of financial collateral securing the exposure. ) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 36 651.7669921875 m 238.099609375 651.7669921875 l s q 0 0 0 rg BT 36.00 653.10 Td (High ) Tj ET Q q 0 0 0 rg BT 58.32 653.10 Td (V) Tj ET Q q 0 0 0 rg BT 64.25 653.10 Td (olatility Commercial Real Estate \(HVCRE\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.10 653.10 Td ( ) Tj ET Q q 0 0 0 rg BT 247.55 653.10 Td (A) Tj ET Q q 0 0 0 rg BT 254.22 653.10 Td ( credit facility that finances or has financed the acquisition, development, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 641.10 Td (construction of real property) Tj ET Q q 0 0 0 rg BT 149.48 641.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 36 615.7669921875 m 174.8525390625 615.7669921875 l s q 0 0 0 rg BT 36.00 617.10 Td (Latent Revaluation Gains/\(Losses\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.85 617.10 Td ( Unrealized gains/\(losses\) on nonpublic equity investments that are recorded at cost. Such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 605.10 Td (unrealized gains/\(losses\) are not recognized in the income statement or through accumulated other comprehensive income.) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 36 579.7669921875 m 247.1279296875 579.7669921875 l s q 0 0 0 rg BT 36.00 581.10 Td (Simple Modified Look ) Tj ET Q q 0 0 0 rg BT 129.98 581.10 Td (Through ) Tj ET Q q 0 0 0 rg BT 166.37 581.10 Td (Approach \(SML) Tj ET Q q 0 0 0 rg BT 231.27 581.10 Td (T) Tj ET Q q 0 0 0 rg BT 236.58 581.10 Td (A\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.13 581.10 Td ( Under this approach, a banking or) Tj ET Q q 0 0 0 rg BT 393.02 581.10 Td (ganization multiplies the adjusted carrying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 569.10 Td (value of its investment in a fund by the highest risk weight that applies to any exposure the fund is permitted to hold as described in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 557.10 Td (the prospectus or fund documents.) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 36 531.7669921875 m 193.8955078125 531.7669921875 l s q 0 0 0 rg BT 36.00 533.10 Td (Simple Risk ) Tj ET Q q 0 0 0 rg BT 87.49 533.10 Td (W) Tj ET Q q 0 0 0 rg BT 96.13 533.10 Td (eight ) Tj ET Q q 0 0 0 rg BT 118.08 533.10 Td (Approach \(SR) Tj ET Q q 0 0 0 rg BT 175.01 533.10 Td (W) Tj ET Q q 0 0 0 rg BT 183.34 533.10 Td (A\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.90 533.10 Td ( Under this approach, a banking or) Tj ET Q q 0 0 0 rg BT 339.78 533.10 Td (ganization would determine the risk-weighted asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 521.10 Td (amount for each equity exposure by multiplying the adjusted carrying value of the equity exposure by the lowest applicable risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 509.10 Td (weight permitted.) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 36 483.7669921875 m 239.1396484375 483.7669921875 l s q 0 0 0 rg BT 36.00 485.10 Td (Simplified Supervisory Formula ) Tj ET Q q 0 0 0 rg BT 167.39 485.10 Td (Approach \(SSF) Tj ET Q q 0 0 0 rg BT 228.59 485.10 Td (A\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.14 485.10 Td ( Under this approach, a banking or) Tj ET Q q 0 0 0 rg BT 385.03 485.10 Td (ganization takes into account the nature and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 473.10 Td (quality of the underlying collateral when assigning a risk weight to a securitization exposure. It was designed to apply relatively ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 461.10 Td (higher capital requirements to the more risky junior tranches of a securitization that are the first to absorb losses and apply relatively ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 449.10 Td (lower requirements to the most senior positions.) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 36 423.7669921875 m 76.546875 423.7669921875 l s q 0 0 0 rg BT 36.00 425.10 Td (Sovereign) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.55 425.10 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 425.10 Td (A) Tj ET Q q 0 0 0 rg BT 92.67 425.10 Td ( central government or agency) Tj ET Q q 0 0 0 rg BT 213.63 425.10 Td (, department, ministry) Tj ET Q q 0 0 0 rg BT 301.29 425.10 Td (, or central bank of a central government. ) Tj ET Q q 0 0 0 rg BT 468.45 425.10 Td (A) Tj ET Q q 0 0 0 rg BT 475.12 425.10 Td ( sovereign exposure is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 413.10 Td (directly and unconditionally backed by the full faith and credit of a sovereign.) 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