Fair Value Measurements – Nonrecurring (a)
## Table 0 ##
(a) All Level 3 except $5 million in loans held for sale which are Level 2 at December 31, 2009.
(b) Includes LIHTC and other equity investments.
(c) No strata at fair value at December 31, 2009 and two strata at December 31, 2008.
During 2009, we recorded a $35 million recovery of previous impairment on commercial mortgage servicing rights.
Refer to Note 9 Goodwill and Other Intangible Assets for additional information.
(d) Principally other real estate owned.
Fair Value Option Commercial Mortgage Loans Held for Sale We account for certain commercial mortgage loans classified as held for sale at fair value.
The election of the fair value option aligns the accounting for the commercial mortgages with the related hedges.
At origination, these loans were intended for securitization.
Due to inactivity in the CMBS securitization market in 2009 and 2008, we determined the fair value of commercial mortgage loans held for sale by using a whole loan methodology.
Fair value was determined using assumptions that management believed a market participant would use in pricing the loans.
When available, valuation assumptions included observable inputs based on whole loan sales.
Adjustments were made to these assumptions when uncertainties exist, including market conditions and liquidity.
Credit risk is included as part of our valuation process for these loans by considering expected rates of return for market participants for similar loans in the marketplace.
Based on the significance of unobservable inputs, we classify this portfolio as Level 3.
At December 31, 2009, commercial mortgage loans held for sale for which we elected the fair value option had an aggregate fair value of $1.1 billion and an aggregate outstanding principal balance of $1.3 billion.
The comparable amounts at December 31, 2008 were $1.4 billion and $1.6 billion, respectively.
Interest income on these loans is recorded as earned and reported on the Consolidated Income Statement in other interest income.
Net losses resulting from changes in fair value of these loans of $68 million in 2009 and $251 million for 2008 were recorded in other noninterest income.
The impact on earnings of offsetting economic hedges is not reflected in these amounts.
Changes in fair value due to instrument-specific credit risk for 2009 and 2008 were not material.
The changes in fair value of these loans were partially offset by changes in the fair value of the related financial derivatives that economically hedged these loans.
Residential Mortgage Loans Held for Sale We have elected to account for certain residential mortgage loans originated for sale at fair value on a recurring basis.
As of December 31, 2009, all residential mortgage loans held for sale were at fair value.
Residential mortgage loans are valued based on quoted market prices, where available, prices for other traded mortgage loans with similar characteristics, and purchase commitments and bid information received from market participants.
These loans are regularly traded in active markets and observable pricing information is available from market participants.
The prices are adjusted as necessary to include the embedded servicing value in the loans and to take into consideration the specific characteristics of certain loans that are priced based on the pricing of similar loans.
These adjustments represent unobservable inputs to the valuation but are not considered significant to the fair value of the loans.
Accordingly, residential mortgage loans held for sale are classified as Level 2.
At December 31, 2009, residential mortgage loans held for sale for which we elected the fair value option had an aggregate fair value and outstanding principal balance of $1.0 billion.
Throughout 2009, certain residential mortgage loans for which we elected the fair value option were subsequently reclassified to portfolio loans.
Changes in fair value due to instrument-specific credit risk for 2009 was not material.
At December 31, 2009, residential mortgage loans held in portfolio had a total fair value of $88 million and a total outstanding principal balance of $104 million.
Customer Resale Agreements and Bank Notes We have elected to account for structured resale agreements and structured bank notes, which are economically hedged using free-standing financial derivatives at fair value.
The fair value for structured resale agreements and structured bank notes is determined using a model which includes observable market data as inputs such as interest rates.
Readily observable market inputs to this model can be
awards, total compensation expense is recognized in full on all awarded units on the date of grant.
INCENTIVE/PERFORMANCE UNIT SHARE AWARDS AND RESTRICTED STOCK/UNIT AWARDS The fair value of nonvested incentive/performance unit share awards and restricted stock/unit awards is initially determined based on prices not less than the market value of our common stock price on the date of grant.
Incentive/performance unit share awards are subsequently valued subject to the achievement of one or more financial and other performance goals over a three-year period.
The Personnel and Compensation Committee of the Board of Directors approves the final award payout with respect to incentive/performance unit share awards.
Restricted stock/unit awards have various vesting periods ranging from 12 months to 60 months.
There are no financial or performance goals associated with any of our restricted stock/unit awards.
The weighted-average grant-date fair value of incentive/ performance unit share awards and restricted stock/unit awards granted in 2009, 2008 and 2007 was $41.16, $59.25 and $73.83 per share, respectively.
We recognize compensation expense for such awards ratably over the corresponding vesting and/or performance periods for each type of program.
A summary of nonvested incentive/performance unit shares and restricted stock/unit share activity follows:
## Table 1 ##
In the chart above, the unit shares and related weightedaverage grant-date fair value of the incentive/performance awards exclude the effect of dividends on the underlying shares, as those dividends will be paid in cash.
At December 31, 2009, there was $47 million of unrecognized deferred compensation expense related to nonvested sharebased compensation arrangements granted under the Incentive Plans.
This cost is expected to be recognized as expense over a period of no longer than five years.
The total fair value of incentive/performance unit share and restricted stock /unit awards vested during 2009, 2008 and 2007 was approximately $47 million, $41 million and $79 million, respectively.
LIABILITY AWARDS Beginning in 2008, we granted cash-payable restricted share units to certain executives.
The grants were made primarily as part of an annual bonus incentive deferral plan.
While there are time-based, service-related vesting criteria, there are no market or performance criteria associated with these awards.
Compensation expense recognized related to these awards was recorded in prior periods as part of annual cash bonus criteria.
As of December 31, 2009, there were 440,441 of these cashpayable restricted share units outstanding.
During the third quarter of 2009, we entered into an agreement with certain of our executives regarding a portion of their salary to be payable in stock units.
These units, which are cash-payable, have no future service, market or performance criteria and as such are fully expensed at grant date.
These units will be settled in cash on March 31, 2011.
As of December 31, 2009, there were 221,286 of these units outstanding, with a current market value of approximately $12 million.
A summary of all nonvested, cash-payable restricted share unit activity follows:
## Table 2 ##
The total of all share-based liability awards paid out during 2009 was approximately $2 million.
There were no sharebased liability awards paid out in 2008 or 2007.
EMPLOYEE STOCK PURCHASE PLAN As of December 31, 2009, our ESPP has approximately 1.8 million shares available for issuance.
Full-time employees with six months and part-time employees with 12 months of continuous employment with us are eligible to participate in the ESPP at the commencement of the next six-month offering period.
Eligible participants may purchase our common stock at 95% of the fair market value on the last day of each six-month offering period.
No charge to earnings is recorded with respect to the ESPP.
Shares issued pursuant to the ESPP were as follows:
## Table 3 ##
BLACKROCK LTIP PROGRAMS BlackRock adopted the 2002 LTIP program to help attract and retain qualified professionals.
At that time, PNC agreed to transfer up to four million of the shares of BlackRock common stock then held by us to help fund the 2002 LTIP and future programs approved by BlackRock’s board of directors,
BLACKROCK Information related to our equity investment in BlackRock follows:
## Table 4 ##
(a) Includes PNC’s share of BlackRock’s reported GAAP earnings and additional income taxes on those earnings incurred by PNC.
(b) At December 31.
BLACKROCK/BARCLAYS GLOBAL INVESTORS TRANSACTION On December 1, 2009, BlackRock acquired BGI from Barclays Bank PLC in exchange for approximately $6.65 billion in cash and 37,566,771 shares of BlackRock common and participating preferred stock.
In connection with the BGI transaction, BlackRock entered into amendments to stockholder agreements with PNC and its other major shareholder.
These amendments, which changed certain shareholder rights, including composition of the BlackRock Board of Directors and share transfer restrictions, became effective upon closing of the BGI transaction.
Also in connection with the BGI transaction, BlackRock entered into a stock purchase agreement with PNC in which we purchased 3,556,188 shares of BlackRock’s Series D Preferred Stock at a price of $140.60 per share, or $500 million, to partially finance the transaction.
On January 31, 2010, the Series D Preferred Stock was converted to Series B Preferred Stock.
Upon closing of the BGI transaction, the carrying value of our investment in BlackRock increased significantly, reflecting our portion of the increase in BlackRock’s equity resulting from the value of BlackRock shares issued in connection with their acquisition of BGI.
PNC recognized this increase in value as a $1.076 billion pretax gain in the fourth quarter of 2009.
At December 31, 2009, our percentage ownership of BlackRock common stock was approximately 35%.
BLACKROCK LTIP PROGRAMS AND EXCHANGE AGREEMENTS PNC’s noninterest income included pretax gains of $98 million in 2009 and $243 million in 2008 related to our BlackRock LTIP shares obligation.
These gains represented the mark-to-market adjustment related to our remaining BlackRock LTIP common shares obligation and resulted from the decrease in the market value of BlackRock common shares in those periods.
As previously reported, PNC entered into an Exchange Agreement with BlackRock on December 26, 2008.
The transactions that resulted from this agreement restructured PNC’s ownership of BlackRock equity without altering, to any meaningful extent, PNC’s economic interest in BlackRock.
PNC continues to be subject to the limitations on its voting rights in its existing agreements with BlackRock.
Also on December 26, 2008, BlackRock entered into an Exchange Agreement with Merrill Lynch in anticipation of the consummation of the merger of Bank of America Corporation and Merrill Lynch that occurred on January 1, 2009.
The PNC and Merrill Lynch Exchange Agreements restructured PNC’s and Merrill Lynch’s respective ownership of BlackRock common and preferred equity.
The exchange contemplated by these agreements was completed on February 27, 2009.
On that date, PNC’s obligation to deliver BlackRock common shares was replaced with an obligation to deliver shares of BlackRock’s new Series C Preferred Stock.
PNC acquired 2.9 million shares of Series C Preferred Stock from BlackRock in exchange for common shares on that same date.
PNC accounts for these preferred shares at fair value, which offsets the impact of marking-to-market the obligation to deliver these shares to BlackRock as we aligned the fair value marks on this asset and liability.
The fair value of the BlackRock Series C Preferred Stock is included on our Consolidated Balance Sheet in Other assets.
Additional information regarding the valuation of the BlackRock Series C Preferred Stock is included in Note 8 Fair Value in the Notes To Consolidated Financial Statements included in Item 8 of this Report.
PNC accounts for its remaining investment in BlackRock under the equity method of accounting, with its share of BlackRock’s earnings reduced primarily due to the exchange of BlackRock common stock for BlackRock Series C Preferred Stock.
The Series C Preferred Stock is not taken into consideration in determining PNC’s share of BlackRock earnings under the equity method.
PNC’s percentage ownership of BlackRock common stock increased as a result of the substantial exchange of Merrill Lynch’s BlackRock common stock for BlackRock preferred stock.
As a result of the BlackRock preferred stock held by Merrill Lynch and the new BlackRock preferred stock issued to Merrill Lynch and PNC under the Exchange Agreements, PNC’s share of BlackRock common stock is higher than its overall share of BlackRock’s equity and earnings.
The transactions related to the Exchange Agreements do not affect our right to receive dividends declared by BlackRock.

<table><tr><td></td><td colspan="2">Fair Value</td><td colspan="2">Gains(Losses) Year ended</td></tr><tr><td>In millions</td><td> December 31 2009</td><td>December 31 2008</td><td>December 31 2009</td><td>December 31 2008</td></tr><tr><td> Assets</td><td></td><td></td><td></td><td></td></tr><tr><td>Nonaccrual loans</td><td>$939</td><td>$250</td><td>$-365</td><td>$-99</td></tr><tr><td>Loans held for sale</td><td>168</td><td>101</td><td>4</td><td>-2</td></tr><tr><td>Equity investments (b)</td><td>154</td><td>75</td><td>-64</td><td>-73</td></tr><tr><td>Commercial mortgage servicing rights (c)</td><td></td><td>560</td><td></td><td>-35</td></tr><tr><td>Other intangible assets</td><td>1</td><td></td><td></td><td></td></tr><tr><td>Other assets (d)</td><td>138</td><td></td><td>-50</td><td></td></tr><tr><td>Total assets</td><td>$1,400</td><td>$986</td><td>$-475</td><td>$-209</td></tr></table>
<table><tr><td>Shares in thousands</td><td>Nonvested Incentive/ Performance Unit Shares</td><td>Weighted- Average Grant Date Fair Value</td><td>Nonvested Restricted Stock/ Unit Shares</td><td>Weighted- Average Grant Date Fair Value</td></tr><tr><td>December 31, 2008</td><td>459</td><td>$67.33</td><td>1,735</td><td>$65.39</td></tr><tr><td> Granted</td><td></td><td></td><td>1,665</td><td>41.16</td></tr><tr><td> Vested</td><td>-174</td><td>69.47</td><td>-1,108</td><td>54.66</td></tr><tr><td> Forfeited</td><td></td><td></td><td>-79</td><td>39.62</td></tr><tr><td> December 31, 2009</td><td>285</td><td>$66.02</td><td>2,213</td><td>$53.45</td></tr></table>
<table><tr><td>In thousands</td><td>Nonvested Cash-Payable Restricted Unit Shares</td><td>Aggregate Intrinsic Value</td></tr><tr><td>Outstanding at December 31, 2008</td><td>202</td><td></td></tr><tr><td> Granted</td><td>917</td><td></td></tr><tr><td> Vested and released</td><td>-54</td><td></td></tr><tr><td> Forfeited</td><td>-64</td><td></td></tr><tr><td> Outstanding at December 31, 2009</td><td>1,001</td><td>$52,828</td></tr></table>
<table><tr><td>Year ended December 31</td><td>Shares</td><td colspan="2">Price Per Share</td></tr><tr><td> 2009</td><td> 158,536</td><td> $</td><td> 36.87 and $50.15</td></tr><tr><td>2008</td><td>133,563</td><td></td><td>54.25 and 46.55</td></tr><tr><td>2007</td><td>111,812</td><td></td><td>68.00 and 62.37</td></tr></table>
<table><tr><td></td><td>2009</td><td>2008</td></tr><tr><td>Business segment earnings(in millions) (a)</td><td>$207</td><td>$207</td></tr><tr><td>PNC’s share of BlackRock earnings (b)</td><td>23%</td><td>33%</td></tr><tr><td>Carrying value of PNC’s investment in BlackRock (in billions) (b)</td><td>$5.8</td><td>$4.2</td></tr></table>

Question: How many total assets exceed the average of total assets in 2009 for fair value?