Why is PNC redeeming these Trust Preferred Securities?

PNC is redeeming these securities because a 'Capital Treatment Event' or 'Regulatory Capital Event' has occurred. This event was triggered by new rulemaking from the Federal Reserve, FDIC, and OCC concerning Section 171 of the Dodd-Frank Act, which will cease to provide Tier 1 capital treatment for outstanding trust preferred securities.

What is the total value of the securities being redeemed?

PNC is redeeming $450,000,000 of trust preferred securities from PNC Capital Trust E and $517,500,000 from National City Capital Trust IV, for a combined total of $967,500,000.

How will these redemptions affect PNC's financial results?

The redemptions will be funded with available cash. PNC expects its total second half non-cash charges to increase to $162 million, up from the previously disclosed $150 million, due to these redemptions and the expected redemption of other trust preferred securities in the fourth quarter of 2012.

What is the redemption price for these securities?

The redemption price will be $25 per security, which represents 100% of the liquidation amount, plus any accrued and unpaid distributions up to the redemption date of July 30, 2012.

PNC 8-K SEC Disclosure — Jun 28, 2012

Summary

PNC Financial Services Group, Inc. (PNC) announced via an 8-K filing on June 28, 2012, its decision to redeem all outstanding Trust Preferred Securities (TPS) issued by PNC Capital Trust E and National City Capital Trust IV. The redemption, scheduled for July 30, 2012, will be funded by available cash and is being exercised due to a 'Capital Treatment Event' or 'Regulatory Capital Event' triggered by new Federal Reserve regulations concerning trust preferred securities under the Dodd-Frank Act. This proactive redemption reflects PNC's strategic financial management in response to regulatory changes that will cease to grant Tier 1 capital treatment to these securities. While the redemption will result in a slight increase in expected non-cash charges for the second half of 2012, it demonstrates PNC's commitment to optimizing its capital structure and aligning with evolving regulatory requirements.

Key Highlights

1PNC is redeeming all outstanding Trust Preferred Securities (TPS) from PNC Capital Trust E and National City Capital Trust IV.
2The redemption date is set for July 30, 2012.
3The redemption is a result of a 'Capital Treatment Event' or 'Regulatory Capital Event' related to new Dodd-Frank Act regulations impacting Tier 1 capital treatment for trust preferred securities.
4The total redemption amount includes the liquidation amount (100% of par value) plus accrued and unpaid distributions.
5PNC Capital Trust E TPS have a distribution rate of 7.750% and a scheduled redemption in 2038.
6National City Capital Trust IV TPS have a distribution rate of 8.000% and a scheduled maturity in 2047.
7The redemptions will be funded using PNC's available cash.

PNC FINANCIAL SERVICES GROUP, INC. 8-K Report, Corporate Update (Jun 28, 2012)

Summary

Key Highlights

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