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PNC Financial's quarterly earnings tumble

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PNC Financial Services Group Inc.'s third-quarter earnings fell as the regional bank made less money from loans, deposits, fees and charges. The year-ago results also included a hefty gain tied to a sale.

Pittsburgh-based PNC is the parent company of PNC Bank, which has about 1,200 employees and 88 branches in the Indianapolis area.

PNC said Wednesday that its earnings fell to $826 million, or $1.55 per share, for the three months ended Sept. 30. That's down from $1.09 billion, or $2.07 per share, a year earlier.

The prior-year period benefited from a $328 million, or 62-cents-per-share gain, related to the sale of PNC Global Investment Servicing.

The results surpassed the earnings of $1.50 per share that analysts polled by FactSet predicted.

PNC Financial's provision for loan losses — money set aside to cover souring loans — dropped to $261 million from $486 million. Further signs of improving credit included declines in nonperforming assets and net charge-offs, or loans written off as uncollectable.

Revenue dipped 2 percent, to $3.54 billion from $3.6 billion, missing Wall Street's estimate of $3.56 billion.

Net interest income, or money earned from deposits and loans, fell 2 percent, to $2.18 billion from $2.22 billion.

Noninterest income, or earnings from fees and charges, declined 1 percent, to $1.37 billion from $1.38 billion.

The company's third-quarter tax rate was 27 percent, compared with 18.8 percent a year earlier. PNC Financial said the lower rate in the year-ago period was mostly due to a tax benefit related to a favorable IRS letter ruling that resolved a prior tax position.

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  1. PJ - Mall operators like Simon, and most developers/ land owners, establish individual legal entities for each property to avoid having a problem location sink the ship, or simply structure the note to exclude anything but the property acting as collateral. Usually both. The big banks that lend are big boys that know the risks and aren't mad at Simon for forking over the deed and walking away.

  2. Do any of the East side residence think that Macy, JC Penny's and the other national tenants would have letft the mall if they were making money?? I have read several post about how Simon neglected the property but it sounds like the Eastsiders stopped shopping at the mall even when it was full with all of the national retailers that you want to come back to the mall. I used to work at the Dick's at Washington Square and I know for a fact it's the worst performing Dick's in the Indianapolis market. You better start shopping there before it closes also.

  3. How can any company that has the cash and other assets be allowed to simply foreclose and not pay the debt? Simon, pay the debt and sell the property yourself. Don't just stiff the bank with the loan and require them to find a buyer.

  4. If you only knew....

  5. The proposal is structured in such a way that a private company (who has competitors in the marketplace) has struck a deal to get "financing" through utility ratepayers via IPL. Competitors to BlueIndy are at disadvantage now. The story isn't "how green can we be" but how creative "financing" through captive ratepayers benefits a company whose proposal should sink or float in the competitive marketplace without customer funding. If it was a great idea there would be financing available. IBJ needs to be doing a story on the utility ratemaking piece of this (which is pretty complicated) but instead it suggests that folks are whining about paying for being green.

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