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Acquisition Activity | 3 Months Ended
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Mar. 31, 2022
Business Combination and Asset Acquisition [Abstract] |
Acquisition Activity | ACQUISITION ACTIVITY Acquisition of BBVA USA Bancshares, Inc. On June 1, 2021, PNC acquired BBVA including its U.S. banking subsidiary, BBVA USA, for $11.5 billion in cash. PNC did not acquire the following entities as part of the acquisition: BBVA Securities, Inc., Propel Venture Partners Fund I, L.P. and BBVA Processing Services, Inc. This transaction has been accounted for as a business combination. Accordingly, the assets and liabilities from BBVA were recorded at fair value as of the acquisition date. The determination of fair value requires management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change. Fair value estimates related to the assets and liabilities from BBVA are subject to adjustment for up to one year after the closing date of the acquisition as additional information becomes available. Valuations subject to adjustment include, but are not limited to, loans, certain deposits, certain other assets, customer relationships and the core deposit intangibles. On October 12, 2021, PNC converted approximately 2.6 million customers, 9,000 employees and over 600 branches across seven states, merging BBVA USA into PNC Bank. PNC incurred merger and integration costs of $31 million for the three months ended March 31, 2022, in connection with the transaction. These costs are recorded as contra-revenue and expense on the Consolidated Income Statement. The integration expenses are primarily related to realty services and technology expenses. Cumulative costs through March 31, 2022 were $836 million. The following table includes the preliminary fair value of the identifiable tangible and intangible assets and liabilities from BBVA: Table 36: Acquisition Consideration
|  | June 1, 2021
In millions |  | Fair Value
Fair value of acquisition consideration |  | $ | 11,480 |
Assets |  |
Cash and due from banks |  | $ | 969 |
Interest-earning deposits with banks |  | 13,313 |
Loans held for sale |  | 463 |
Investment securities – available for sale |  | 18,358 |
Net loans |  | 61,423 |
Equity investments |  | 723 |
Mortgage servicing rights |  | 35 |
Core deposit intangibles and other intangible assets |  | 378 |
Other |  | 3,527 |
Total assets |  | $ | 99,189 |
Liabilities |  |
Deposits |  | $ | 85,562 |
Borrowed funds |  | 2,449 |
Accrued expenses and other liabilities |  | 1,275 |
Total liabilities |  | $ | 89,286 |
Noncontrolling interests |  | 22 |
Less: Net assets |  | $ | 9,881 |
Goodwill |  | $ | 1,599 |
Preliminary goodwill of $1.6 billion recorded in connection with the transaction resulted from the reputation, operating model and expertise of BBVA. The amount of goodwill recorded reflects the increased market share and related synergies that are expected to result from the acquisition, and represents the excess purchase price over the estimated fair value of the net assets from BBVA. The goodwill was allocated to each of our three business segments on a preliminary basis and is not deductible for income tax purposes. See Note 6 Goodwill and Mortgage Servicing Rights in Item 8 of our 2021 Form 10-K for additional information on the allocation of goodwill to the segments. For a description of the fair value and unpaid principal balance of loans from the BBVA acquisition, as well as the methods used to determine the fair values of significant assets and liabilities, see Note 2 Acquisition and Divestiture Activity in Item 8 of our 2021 Form 10-K.

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- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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