Table 41: Bank-Owned Consumer Real Estate Related Loan Modifications Re-Default by Vintage (a) (b)
## Table 0 ##
(a) An account is considered in re-default if it is 60 days or more delinquent after modification.
The data in this table represents loan modifications completed during the quarters ending June 30, 2011 through June 30, 2012 and represents a vintage look at all quarterly accounts and the number of those modified accounts (for each quarterly vintage) 60 days or more delinquent at six, nine, twelve, and fifteen months after modification.
Account totals include active and inactive accounts that were delinquent when they achieved inactive status.
(b) Vintage refers to the quarter in which the modification occurred.
(c) Reflects December 31, 2012 unpaid principal balances of the re-defaulted accounts for the Second Quarter 2012 Vintage at Six Months, for the First Quarter 2012 Vintage at Nine Months, for the Fourth Quarter 2011 Vintage at Twelve Months, and for the Third and Second Quarter 2011 at Fifteen Months.
In addition to temporary loan modifications, we may make available to a borrower a payment plan or a HAMP trial payment period.
Under a payment plan or a HAMP trial payment period, there is no change to the loan’s contractual terms so the borrower remains legally responsible for payment of the loan under its original terms.
A payment plan involves the borrower paying the past due amounts over a short period of time, generally three months, in addition to the contractual payment amounts over that period upon which a borrower is brought current.
Due to the short term nature of the payment plan there is a minimal impact to the ALLL.
Under a HAMP trial payment period, we establish an alternate payment, generally at an amount less than the contractual payment amount, for the borrower during this short time period.
This allows a borrower to demonstrate successful payment performance before permanently restructuring the loan into a HAMP modification.
Subsequent to successful
In April 2011, the FASB issued ASU 2011-03 Transfers and Servicing (Topic 860), Reconsideration of Effective Control for Repurchase Agreements.
This ASU removes from the assessment of effective control (i) the criterion requiring the transferor to have the ability to repurchase or redeem the financial assets on substantially the agreed terms, even in the event of default by the transferee, and (ii) the collateral maintenance implementation guidance related to that criterion.
Other criteria applicable to the assessment of effective control have not been changed by this ASU.
The adoption of ASU 2011-03 on January 1, 2012 did not have a material effect on our results of operations or financial position.
NOTE 2 ACQUISITION AND DIVESTITURE ACTIVITY RBC BANK (USA) ACQUISITION On March 2, 2012, PNC acquired 100% of the issued and outstanding common stock of RBC Bank (USA), the US retail banking subsidiary of Royal Bank of Canada.
As part of the acquisition, PNC also purchased a credit card portfolio from RBC Bank (Georgia), National Association.
PNC paid $3.6 billion in cash as consideration for the acquisition of both RBC Bank (USA) and the credit card portfolio.
The transactions added approximately $18.1 billion of deposits and $14.5 billion of loans to PNC’s Consolidated Balance Sheet.
RBC Bank (USA), based in Raleigh, North Carolina, operated more than 400 branches in North Carolina, Florida, Alabama, Georgia, Virginia and South Carolina.
The primary reasons for the acquisition of RBC were to enhance shareholder value, to improve PNC’s competitive position in the financial services industry, and to further expand PNC’s existing branch network in the states where it currently operates as well as expanding into new markets.
The RBC Bank (USA) transactions noted above were accounted for using the acquisition method of accounting and, as such, assets acquired, liabilities assumed and consideration exchanged were recorded at their estimated fair value on the acquisition date.
All acquired loans were also recorded at fair value.
No allowance for loan losses was carried over and no allowance was created at acquisition.
In connection with the acquisition, the assets acquired, and the liabilities assumed, were recorded at fair value on the date of acquisition, as summarized in the following table: Table 55: RBC Bank (USA) Purchase Accounting (a) (b)
## Table 1 ##
(a) The table above has been updated to reflect certain immaterial adjustments, including final purchase price settlement.
(b) These amounts include assets and deposits related to Smartstreet, which was sold effective October 26, 2012.
(c) These items are considered as non-cash activity for the Consolidated Statement of Cash Flows.
In many cases the determination of estimated fair values required management to make certain estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature.
The most significant of these determinations related to the fair valuation of acquired loans.
See Note 6 Purchased Loans for further discussion of the accounting for purchased impaired and purchased non-impaired loans, including the determination of fair value for acquired loans.
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 acquired by PNC.
The goodwill was assigned primarily to PNC’s Retail Banking and Corporate & Institutional Banking segments, and is not deductible for income tax purposes.
Other intangible assets acquired, as of March 2, 2012 consisted of the following: Table 56: RBC Bank (USA) Intangible Assets
## Table 2 ##
(a) Intangible asset accounted for at fair value.
TROUBLED DEBT RESTRUCTURINGS (TDRS) A TDR is a loan whose terms have been restructured in a manner that grants a concession to a borrower experiencing financial difficulties.
TDRs typically result from our loss mitigation activities and include rate reductions, principal forgiveness, postponement/reduction of scheduled amortization, extensions, and bankruptcy discharges where no formal reaffirmation was provided by the borrower and therefore a concession has been granted based upon discharge from personal liability, which are intended to minimize economic loss and to avoid foreclosure or repossession of collateral.
In those situations where principal is forgiven, the amount of such principal forgiveness is immediately charged off.
Some TDRs may not ultimately result in the full collection of principal and interest, as restructured, and result in potential incremental losses.
These potential incremental losses have been factored into our overall ALLL estimate.
The level of any subsequent defaults will likely be affected by future economic conditions.
Once a loan becomes a TDR, it will continue to be reported as a TDR until it is ultimately repaid in full, the collateral is foreclosed upon, or it is fully charged off.
We held specific reserves in the ALLL of $587 million and $580 million at December 31, 2012 and December 31, 2011, respectively, for the total TDR portfolio.
Table 71: Summary of Troubled Debt Restructurings
## Table 3 ##
(a) Pursuant to regulatory guidance issued in the third quarter of 2012, additional troubled debt restructurings related to changes in treatment of certain loans of $366 million in 2012, net of charge-offs, resulting from bankruptcy where no formal reaffirmation was provided by the borrower and therefore a concession has been granted based upon discharge from personal liability were added to the consumer lending population.
The additional TDR population increased nonperforming loans by $288 million.
Charge-offs have been taken where the fair value less costs to sell the collateral was less than the recorded investment of the loan and were $128.1 million.
Of these nonperforming loans, approximately 78% were current on their payments at December 31, 2012.
(b) Accruing loans have demonstrated a period of at least six months of performance under the restructured terms and are excluded from nonperforming loans.
(c) Includes credit cards and certain small business and consumer credit agreements whose terms have been restructured and are TDRs.
However, since our policy is to exempt these loans from being placed on nonaccrual status as permitted by regulatory guidance as generally these loans are directly charged off in the period that they become 180 days past due, these loans are excluded from nonperforming loans.
The following table quantifies the number of loans that were classified as TDRs as well as the change in the recorded investments as a result of the TDR classification during the years ended December 31, 2012 and 2011.
Additionally, the table provides information about the types of TDR concessions.
The Principal Forgiveness TDR category includes principal forgiveness and accrued interest forgiveness.
These types of TDRs result in a write down of the recorded investment and a charge-off if such action has not already taken place.
The Rate Reduction TDR category includes reduced interest rate and interest deferral.
The TDRs within this category would result in reductions to future interest income.
The Other TDR category primarily includes postponement/reduction of scheduled amortization, as well as contractual extensions.
In some cases, there have been multiple concessions granted on one loan.
When there have been multiple concessions granted, the principal forgiveness TDR was prioritized for purposes of determining the inclusion in the table below.
For example, if there is principal forgiveness in conjunction with lower interest rate and postponement of amortization, the type of concession will be reported as Principal Forgiveness.
Second in priority would be rate reduction.
For example, if there is an interest rate reduction in conjunction with postponement of amortization, the type of concession will be reported as a Rate Reduction.
We sold $2.2 billion of commercial mortgages held for sale carried at the lower of cost or market in 2012.
The comparable amount in 2011 was $2.4 billion.
The increase in these loans to $620 million at December 31, 2012, compared to $451 million at December 31, 2011, was due to an increase in loans awaiting sale to government agencies.
We recognized total net gains of $41 million in 2012 and $48 million in 2011 on the valuation and sale of commercial mortgage loans held for sale, net of hedges.
Residential mortgage loan origination volume was $15.2 billion in 2012 compared with $11.4 billion in 2011.
Substantially all such loans were originated under agency or Federal Housing Administration (FHA) standards.
We sold $13.8 billion of loans and recognized related gains of $747 million during 2012.
The comparable amounts for 2011 were $11.9 billion and $384 million, respectively.
Interest income on loans held for sale was $168 million in 2012 and $193 million in 2011.
These amounts are included in Other interest income on our Consolidated Income Statement.
Additional information regarding our loan sale and servicing activities is included in Note 3 Loan Sale and Servicing Activities and Variable Interest Entities in our Notes To Consolidated Financial Statements included in Item 8 of this Report.
GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill and other intangible assets totaled $10.9 billion at December 31, 2012 and $10.1 billion at December 31, 2011.
During 2012, we recorded goodwill of $950 million and other intangible assets of $180 million associated with the RBC Bank (USA) acquisition.
In the fourth quarter of 2012, we sold certain deposits and assets of the Smartstreet business unit, which was acquired by PNC as part of the RBC Bank (USA) acquisition, which resulted in a reduction of goodwill and core deposit intangibles by approximately $46 million and $13 million, respectively.
Also in the fourth quarter of 2012, we recorded a $45 million noncash charge for goodwill impairment related to PNC’s Residential Mortgage Banking business segment.
See Note 2 Acquisition and Divestiture Activity and Note 10 Goodwill and Other Intangible Assets in the Notes To Consolidated Financial Statements included in Item 8 of this Report.
FUNDING AND CAPITAL SOURCES Table 16: Details Of Funding Sources

<table><tr><td></td><td colspan="2">Six Months</td><td colspan="2">Nine Months</td><td colspan="2">Twelve Months</td><td colspan="2">Fifteen Months</td><td></td></tr><tr><td>December 31, 2012Dollars in millions</td><td>Number of Accounts Re-defaulted</td><td>% of Vintage Re-defaulted</td><td>Number ofAccounts Re-defaulted</td><td>% of Vintage Re-defaulted</td><td>Number ofAccounts Re-defaulted</td><td>% of Vintage Re-defaulted</td><td>Number ofAccounts Re-defaulted</td><td>% of Vintage Re-defaulted</td><td>UnpaidPrincipal Balance (c)</td></tr><tr><td> Permanent Modifications</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> Home Equity</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Second Quarter 2012</td><td>36</td><td>2.0%</td><td></td><td></td><td></td><td></td><td></td><td></td><td>$2,340</td></tr><tr><td>First Quarter 2012</td><td>24</td><td>2.2</td><td>42</td><td>3.8%</td><td></td><td></td><td></td><td></td><td>2,519</td></tr><tr><td>Fourth Quarter 2011</td><td>9</td><td>2.0</td><td>18</td><td>3.9</td><td>25</td><td>5.4%</td><td></td><td></td><td>2,149</td></tr><tr><td>Third Quarter 2011</td><td>23</td><td>4.0</td><td>31</td><td>5.4</td><td>37</td><td>6.5</td><td>49</td><td>8.6%</td><td>3,514</td></tr><tr><td>Second Quarter 2011</td><td>20</td><td>5.4</td><td>29</td><td>7.8</td><td>38</td><td>10.2</td><td>42</td><td>11.3</td><td>2,588</td></tr><tr><td> Residential Mortgages</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Second Quarter 2012</td><td>192</td><td>18.7</td><td></td><td></td><td></td><td></td><td></td><td></td><td>32,842</td></tr><tr><td>First Quarter 2012</td><td>181</td><td>17.7</td><td>238</td><td>23.2</td><td></td><td></td><td></td><td></td><td>38,753</td></tr><tr><td>Fourth Quarter 2011</td><td>206</td><td>21.8</td><td>281</td><td>29.7</td><td>318</td><td>33.6</td><td></td><td></td><td>53,211</td></tr><tr><td>Third Quarter 2011</td><td>260</td><td>21.6</td><td>350</td><td>29.1</td><td>442</td><td>36.7</td><td>471</td><td>39.1</td><td>75,420</td></tr><tr><td>Second Quarter 2011</td><td>338</td><td>25.5</td><td>424</td><td>31.9</td><td>469</td><td>35.3</td><td>533</td><td>40.1</td><td>83,804</td></tr><tr><td> Non-Prime Mortgages</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Second Quarter 2012</td><td>39</td><td>20.1</td><td></td><td></td><td></td><td></td><td></td><td></td><td>5,014</td></tr><tr><td>First Quarter 2012</td><td>46</td><td>21.3</td><td>57</td><td>26.4</td><td></td><td></td><td></td><td></td><td>8,344</td></tr><tr><td>Fourth Quarter 2011</td><td>38</td><td>14.7</td><td>59</td><td>22.9</td><td>81</td><td>31.4</td><td></td><td></td><td>11,390</td></tr><tr><td>Third Quarter 2011</td><td>85</td><td>23.0</td><td>103</td><td>27.8</td><td>133</td><td>35.9</td><td>144</td><td>38.9</td><td>19,836</td></tr><tr><td>Second Quarter 2011</td><td>105</td><td>17.8</td><td>143</td><td>24.2</td><td>163</td><td>27.6</td><td>189</td><td>32.0</td><td>28,585</td></tr><tr><td> Residential Construction</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Second Quarter 2012</td><td>4</td><td>3.0</td><td></td><td></td><td></td><td></td><td></td><td></td><td>–</td></tr><tr><td>First Quarter 2012</td><td>2</td><td>1.6</td><td>5</td><td>3.9</td><td></td><td></td><td></td><td></td><td>1,522</td></tr><tr><td>Fourth Quarter 2011</td><td>5</td><td>5.6</td><td>7</td><td>7.8</td><td>13</td><td>14.4</td><td></td><td></td><td>4,598</td></tr><tr><td>Third Quarter 2011</td><td>2</td><td>1.8</td><td>2</td><td>1.8</td><td>6</td><td>5.5</td><td>14</td><td>12.7</td><td>2,644</td></tr><tr><td>Second Quarter 2011</td><td>4</td><td>3.9</td><td>4</td><td>3.9</td><td>3</td><td>2.9</td><td>5</td><td>4.9</td><td>1,915</td></tr><tr><td> Temporary Modifications</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> Home Equity</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Second Quarter 2012</td><td>33</td><td>11.0%</td><td></td><td></td><td></td><td></td><td></td><td></td><td>$3,384</td></tr><tr><td>First Quarter 2012</td><td>33</td><td>7.1</td><td>46</td><td>9.9%</td><td></td><td></td><td></td><td></td><td>3,388</td></tr><tr><td>Fourth Quarter 2011</td><td>26</td><td>5.2</td><td>39</td><td>7.8</td><td>53</td><td>10.6%</td><td></td><td></td><td>4,688</td></tr><tr><td>Third Quarter 2011</td><td>42</td><td>9.8</td><td>50</td><td>11.7</td><td>65</td><td>15.2</td><td>76</td><td>17.8%</td><td>8,158</td></tr><tr><td>Second Quarter 2011</td><td>63</td><td>10.7</td><td>92</td><td>15.6</td><td>113</td><td>19.2</td><td>135</td><td>22.9</td><td>14,077</td></tr></table>
<table><tr><td></td><td colspan="3">As of March 2, 2012</td></tr><tr><td>Intangible Assets (in millions)</td><td rowspan="3">FairValue $16 164</td><td rowspan="3">WeightedLife 68 months 144 months</td><td rowspan="3">Amortization Method (a) Accelerated</td></tr><tr><td>Residential mortgage servicing rights</td></tr><tr><td>Core deposits</td></tr><tr><td>Total</td><td>$180</td><td></td><td></td></tr></table>
<table><tr><td> Purchase price as of March 2, 2012</td><td>$3,599</td></tr><tr><td> Recognized amounts of identifiable assets acquired and (liabilities assumed), at fair value (c)</td><td></td></tr><tr><td>Cash due from banks</td><td>305</td></tr><tr><td>Trading assets, interest-earning deposits with banks, and other short-term investments</td><td>1,493</td></tr><tr><td>Loans held for sale</td><td>97</td></tr><tr><td>Investment securities</td><td>2,349</td></tr><tr><td>Net loans</td><td>14,512</td></tr><tr><td>Other intangible assets</td><td>180</td></tr><tr><td>Equity investments</td><td>35</td></tr><tr><td>Other assets</td><td>3,383</td></tr><tr><td>Deposits</td><td>-18,094</td></tr><tr><td>Other borrowed funds</td><td>-1,321</td></tr><tr><td>Other liabilities</td><td>-290</td></tr><tr><td>Total fair value of identifiable net assets</td><td>2,649</td></tr><tr><td> Goodwill</td><td>$950</td></tr></table>
<table><tr><td>In millions</td><td>Dec. 312012</td><td>Dec. 312011</td></tr><tr><td>Total consumer lending (a)</td><td>$2,318</td><td>$1,798</td></tr><tr><td>Total commercial lending</td><td>541</td><td>405</td></tr><tr><td>Total TDRs</td><td>$2,859</td><td>$2,203</td></tr><tr><td>Nonperforming</td><td>$1,589</td><td>$1,141</td></tr><tr><td>Accruing (b)</td><td>1,037</td><td>771</td></tr><tr><td>Credit card (c)</td><td>233</td><td>291</td></tr><tr><td>Total TDRs</td><td>$2,859</td><td>$2,203</td></tr></table>

Question: the specific reserves in the alll as of december 31 , 2012 were what percent of the tdr portfolio?
Answer: 0.20532