Summary
PNC Financial Services Group, Inc. (PNC) filed this Current Report on Form 8-K on January 15, 2010, primarily to update its previously filed financial information in its 2008 Form 10-K. This update is a requirement associated with the filing of new registration statements on Form S-3, which replace expired ones. The report specifically revises historical financial data to reflect changes in PNC's business segments following the acquisition of National City Corporation, the retroactive adoption of new accounting standards (SFAS 160 and FSP EITF 03-06-1), and adjustments related to BlackRock, Inc.'s adoption of accounting standards. For investors, the key takeaway is the restructuring of PNC's reporting segments to seven distinct areas: Retail Banking, Corporate & Institutional Banking, Asset Management Group, Residential Mortgage Banking, BlackRock, Global Investment Servicing, and Distressed Assets Portfolio. Notably, two new segments, Residential Mortgage Banking and Distressed Assets Portfolio, largely comprise businesses acquired from National City and do not have prior financial data presented in these revised statements. The report also clarifies that the financial information for BlackRock and Global Investment Servicing remains unaffected by these segment changes.
Key Highlights
- 1PNC is filing a Form 8-K to update historical financial statements in its 2008 Form 10-K due to the expiration of previous Form S-3 registration statements and the filing of new ones.
- 2The report details a reorganization of PNC's business segments into seven categories following the National City acquisition: Retail Banking, Corporate & Institutional Banking, Asset Management Group, Residential Mortgage Banking, BlackRock, Global Investment Servicing, and Distressed Assets Portfolio.
- 3Two new business segments, Residential Mortgage Banking and Distressed Assets Portfolio, are introduced, primarily consisting of assets acquired from National City.
- 4The financial data for the new Residential Mortgage Banking and Distressed Assets Portfolio segments are not included for prior periods as they were acquired during 2009.
- 5PNC is retroactively adopting new accounting standards: SFAS 160 (Noncontrolling Interests) and FSP EITF 03-06-1 (Participating Securities).
- 6Revisions were also made to the financial information of BlackRock, Inc. to reflect its retroactive adoption of SFAS 160, FSP EITF 03-06-1, and FSP APB 14-1 (Convertible Debt).
- 7The revised financial statements filed as Exhibit 99.1 will serve as historical audited consolidated financial statements for future filings until PNC's 2009 Form 10-K is filed.