Consumer Real Estate Secured Asset Quality Indicators – Purchased Impaired Loans
## Table 0 ##
(a) Amounts shown represent outstanding balance.
See Note 6 Purchased Impaired Loans for additional information.
(b) For the estimate of cash flows utilized in our purchased impaired loan accounting, other assumptions and estimates are made, including amortization of first lien balances, pre-payment rates, etc.
, which are not reflected in this table.
(c) The following states have the highest percentage of loans: California 22%, Florida 13%, Illinois 12%, Ohio 9%, Michigan 5% and New York 4%.
None of the remaining states have above 3% concentration of purchased impaired, however, on a collective basis the remaining states make up 35% of the purchased impaired portfolio.
(d) Based upon updated LTV (inclusive of CLTV for second lien positions).
(e) Updated LTV (inclusive of CLTV for second lien positions) are estimated using modeled property values.
These ratios are updated at least annually.
The related estimates and inputs are based upon an approach that uses a combination of third-party AVMs, HPI indices, property location, internal and external balance information, origination data and management assumptions.
In cases where we are in an originated second lien position, we generally utilize origination balances provided by a third-party which do not include an amortization assumption when calculating updated LTV.
Accordingly, the results of these calculations do not represent actual appraised loan level collateral or updated LTV based upon a current first lien balance, and as such, are necessarily imprecise and subject to change as we enhance our methodology Throughout 2011 management continued to refine its process for updating LTVs, including the acquisition of additional third-party data to determine updated LTVs.
Prior to the fourth quarter 2011, updated LTV information was not readily available for a portion of the home equity and residential real estate loan classes and, therefore, management relied on a combination of original and updated LTVs for internal and external reporting of credit quality indicators for the home equity and residential real estate loan classes as set forth in the 2010 Consumer Real Estate Secured Asset Quality Indicators table (the “2010 Table”).
The 2011 Consumer Real Estate Secured Asset Quality Indicators – Excluding Purchased Impaired Loans table (the “2011 Table”) and Consumer Real Estate Secured Asset Quality Indicators – Purchased Impaired Loans table (the “2011 Purchased Impaired Table” and together with the 2011 Table, the “2011 Tables”) are not directly comparable to the 2010 Table.
Due to our 2011 process enhancements and availability of updated LTVs at December 31, 2011, we have defined higher risk loans in the 2011 Table based upon an updated LTV of 100% or greater, whereas higher risk loans in the 2010 Table were based a combination of original LTV of 90% or greater and updated LTV of 90% or greater.
We have also provided a separate 2011 Purchased Impaired Table for our purchased impaired loans, whereas purchased impaired loans were included in our 2010 Table.
Additionally, please see the Home Equity and Residential Real Estate Balances table for a reconciliation of outstanding balances to recorded investment utilized in the 2011 Tables and 2010 Table, respectively.
Generally, our variable-rate home equity lines of credit have either a seven or ten year draw period, followed by a 20 year amortization term.
During the draw period, we have home equity lines of credit where borrowers pay interest only and home equity lines of credit where borrowers pay principal and interest.
Based upon outstanding balances at December 31, 2011, the following table presents the periods when home equity lines of credit draw periods are scheduled to end.
Home Equity Lines of Credit - Draw Period End Dates
## Table 1 ##
(a) Includes approximately $306 million, $44 million, $60 million, $100 million, and $246 million of home equity lines of credit with balloon payments with draw periods scheduled to end in 2012, 2013, 2014, 2015, and 2016 and thereafter, respectively.
We view home equity lines of credit where borrowers are paying principal and interest under the draw period as less risky than those where the borrowers are paying interest only, as these borrowers have a demonstrated ability to make some level of principal and interest payments.
Based upon outstanding balances, and excluding purchased impaired loans, at December 31, 2011, for home equity lines of credit for which the borrower can no longer draw (e. g. , draw period has ended or borrowing privileges have been terminated), approximately 4.32% were 30-89 days past due and approximately 5.57% were greater than or equal to 90 days past due.
Generally, when a borrower becomes 60 days past due, we terminate borrowing privileges, and those privileges are not subsequently reinstated.
At that point, we continue our collection/recovery processes, which may include a loss mitigation loan modification resulting in a loan that is classified as a TDR.
See Note 5 Asset Quality and Allowances for Loan and Lease Losses and Unfunded Loan Commitments and Letters of Credit in the Notes To Consolidated Financial Statements in Item 8 of this Report for additional information.
LOAN MODIFICATIONS AND TROUBLED DEBT RESTRUCTURINGS Consumer Loan Modifications We modify loans under government and PNC-developed programs based upon our commitment to help eligible homeowners and borrowers avoid foreclosure, where appropriate.
Initially, a borrower is evaluated for a modification under a government program.
If a borrower does not qualify under a government program, the borrower is then evaluated under a PNC program.
Our programs utilize both temporary and permanent modifications and typically reduce the interest rate, extend the term and/or defer principal.
Temporary and permanent modifications under programs involving a change to loan terms are generally classified as TDRs.
Further, certain payment plans and trial payment arrangements which do not include a contractual change to loan terms may be classified as TDRs.
Additional detail on TDRs is discussed below as well as in Note 5 Asset Quality and Allowances for Loan and Lease Losses and Unfunded Loan Commitments and Letters of Credit in the Notes To Consolidated Financial Statements in Item 8 of this Report.
A temporary modification, with a term between three and 60 months, involves a change in original loan terms for a period of time and reverts to the original loan terms as of a specific date or the occurrence of an event, such as a failure to pay in accordance with the terms of the modification.
Typically, these modifications are for a period of up to 24 months after which the interest rate reverts to the original loan rate.
A permanent modification, with a term greater than 60 months, is a modification in which the terms of the original loan are changed.
Permanent modifications primarily include the government-created Home Affordable Modification Program (HAMP) or PNC-developed HAMP-like modification programs.
For consumer loan programs, such as residential mortgages and home equity loans and lines, we will enter into a temporary modification when the borrower has indicated a temporary hardship and a willingness to bring current the delinquent loan balance.
Examples of this situation often include delinquency due to illness or death in the family, or a loss of employment.
Permanent modifications are entered into when it is confirmed that the borrower does not possess the income necessary to continue making loan payments at the current amount, but our expectation is that payments at lower amounts can be made.
Residential mortgage and home equity loans and lines have been modified with changes in terms for up to 60 months, although the majority involve periods of three to 24 months.
We also monitor the success rates and delinquency status of our loan modification programs to assess their effectiveness in serving our customers’ needs while mitigating credit losses.
The following tables provide the number of accounts and unpaid principal balance of modified consumer real estate related loans as well as the number of accounts and unpaid principal balance of modified loans that were 60 days or more past due as of six months, nine months and twelve months after the modification date.
Our total commitments were $155.1 billion at December 31, 2015.
The increase in the comparison is primarily attributable to an increase in commitments to extend credit, partially offset by declines in net outstanding standby letters of credit.
Credit Ratings PNC’s credit ratings affect the cost and availability of shortand long-term funding, collateral requirements for certain derivative instruments, and the ability to offer certain products.
In general, rating agencies base their ratings on many quantitative and qualitative factors, including capital adequacy, liquidity, asset quality, business mix, level and quality of earnings, and the current legislative and regulatory environment, including implied government support.
In addition, rating agencies themselves have been subject to scrutiny arising from the most recent financial crisis and could make or be required to make substantial changes to their ratings policies and practices, particularly in response to legislative and regulatory changes.
Potential changes in the legislative and regulatory environment and the timing of those changes could impact our ratings, which as noted above, could impact our liquidity and financial condition.
A decrease, or potential decrease, in credit ratings could impact access to the capital markets and/or increase the cost of debt, and thereby adversely affect liquidity and financial condition.
Table 27: Credit Ratings as of December 31, 2016 for PNC and PNC Bank
## Table 2 ##
Capital Management We manage our funding and capital positions by making adjustments to our balance sheet size and composition, issuing or redeeming debt, issuing equity or other capital instruments, executing treasury stock transactions and capital redemptions, and managing dividend policies and retaining earnings.
For the full year 2016, we returned $3.1 billion of capital to shareholders.
Repurchases totaled 22.8 million common shares for $2.0 billion and dividends on common shares were $1.1 billion.
We repurchase shares of PNC common stock under share repurchase authorization provided by our Board of Directors in the amount of up to 100 million shares and consistent with capital plans submitted to, and accepted by, the Federal Reserve.
Repurchases are made on the open market or in privately negotiated transactions and the extent and timing of share repurchases under authorizations depend on a number of factors including, among others, market and general economic conditions, economic and regulatory capital considerations, alternative uses of capital, the potential impact on our credit ratings, contractual and regulatory limitations, and the results of supervisory assessments of capital adequacy and capital planning processes undertaken by the Federal Reserve as part of the CCAR and DFAST processes.
For the five quarter period ended June 30, 2016, we repurchased 29.9 million shares of PNC common stock for $2.7 billion, which was consistent with the 2015 capital plan accepted by the Federal Reserve as part of our 2015 CCAR submission.
Of the total repurchased, 12.0 million shares for $1.0 billion occurred in the first two quarters of 2016.
In connection with the 2016 CCAR process, the Federal Reserve accepted our capital plan, as approved by our Board of Directors, and did not object to our proposed capital actions in April 2016.
As provided for in the 2016 capital plan, we announced new share repurchase programs of up to $2.0 billion for the four quarter period beginning in the third quarter of 2016, including repurchases of up to $200 million related to employee benefit plans.
We repurchased 10.8 million common shares for $1.0 billion during the third and fourth quarters of 2016 under these share repurchase programs.
In January 2017, we announced a $300 million increase in our share repurchase programs for the four quarter period ended June 30, 2017.
The quarterly cash dividend on common stock was increased to 55 cents from 51 cents effective with the August 5, 2016 dividend payment date.
On November 1, 2016 we issued 525,000 depositary shares, each representing a 1/100th interest in a share of our Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series S, in an underwritten public offering resulting in gross proceeds of $525 million to us before commissions and expenses.
We issued 5,250 shares of Series S Preferred Stock to the depositary in this transaction.
See Note 15 Equity in the Notes to Consolidated Financial Statements in Item 8 of this Report for more information on the terms of the securities.
See the Supervision and Regulation section of Item 1 Business in this Report for further information concerning the CCAR process and the factors the Federal Reserve takes into consideration in its evaluation of capital plans.
See Note 23 Subsequent Events for discussion of our February 2017 announcement of our March 2017 redemption of the Fixed-to-Floating Rate Non-Cumulative Exchangeable Perpetual Trust Securities of PNC Preferred Funding Trust I and PNC Preferred Funding Trust II.

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td colspan="2">Home Equity (a) (b)</td><td rowspan="2">Residential RealEstate (a) (b) 1st Liens (c)</td><td></td></tr><tr><td>December 31, 2011 - in millions</td><td>1st Liens (c)</td><td>2nd Liens (c)</td><td>Total (a)</td></tr><tr><td>Current estimated LTV ratios (d) (e)</td><td></td><td></td><td></td><td></td></tr><tr><td>Greater than or equal to 125% and updated FICO scores:</td><td></td><td></td><td></td><td></td></tr><tr><td>Greater than 660</td><td>$21</td><td>$871</td><td>$361</td><td>$1,253</td></tr><tr><td>Less than or equal to 660</td><td>28</td><td>532</td><td>681</td><td>1,241</td></tr><tr><td>Missing FICO</td><td></td><td>24</td><td>38</td><td>62</td></tr><tr><td>Greater than or equal to 100% to less than 125% and updated FICO scores:</td><td></td><td></td><td></td><td></td></tr><tr><td>Greater than 660</td><td>19</td><td>490</td><td>229</td><td>738</td></tr><tr><td>Less than or equal to 660</td><td>22</td><td>272</td><td>375</td><td>669</td></tr><tr><td>Missing FICO</td><td></td><td>19</td><td>7</td><td>26</td></tr><tr><td>Greater than or equal to 90% to less than 100% and updated FICO scores:</td><td></td><td></td><td></td><td></td></tr><tr><td>Greater than 660</td><td>10</td><td>118</td><td>116</td><td>244</td></tr><tr><td>Less than or equal to 660</td><td>13</td><td>69</td><td>208</td><td>290</td></tr><tr><td>Missing FICO</td><td></td><td>5</td><td>4</td><td>9</td></tr><tr><td>Less than 90% and updated FICO scores:</td><td></td><td></td><td></td><td></td></tr><tr><td>Greater than 660</td><td>52</td><td>398</td><td>404</td><td>854</td></tr><tr><td>Less than or equal to 660</td><td>102</td><td>322</td><td>679</td><td>1,103</td></tr><tr><td>Missing FICO</td><td>1</td><td>16</td><td>22</td><td>39</td></tr><tr><td>Missing LTV and updated FICO scores:</td><td></td><td></td><td></td><td></td></tr><tr><td>Greater than 660</td><td></td><td></td><td>1</td><td>1</td></tr><tr><td>Less than or equal to 660</td><td></td><td></td><td>1</td><td>1</td></tr><tr><td>Missing FICO</td><td></td><td>1</td><td>2</td><td>3</td></tr><tr><td>Total Home Equity and Residential Real Estate Loans</td><td>$268</td><td>$3,137</td><td>$3,128</td><td>$6,533</td></tr></table>
<table><tr><td>In millions</td><td>Interest Only Product</td><td>Principal and Interest Product</td></tr><tr><td>2012</td><td>$904</td><td>$266</td></tr><tr><td>2013</td><td>1,211</td><td>331</td></tr><tr><td>2014</td><td>2,043</td><td>598</td></tr><tr><td>2015</td><td>1,988</td><td>820</td></tr><tr><td>2016 and thereafter</td><td>6,961</td><td>5,601</td></tr><tr><td>Total (a)</td><td>$13,107</td><td>$7,616</td></tr></table>
<table><tr><td></td><td>Moody’s</td><td>Standard & Poor’s</td><td>Fitch</td></tr><tr><td> PNC</td><td></td><td></td><td></td></tr><tr><td>Senior debt</td><td>A3</td><td>A-</td><td>A+</td></tr><tr><td>Subordinated debt</td><td>A3</td><td>BBB+</td><td>A</td></tr><tr><td>Preferred stock</td><td>Baa2</td><td>BBB-</td><td>BBB-</td></tr><tr><td> PNC Bank</td><td></td><td></td><td></td></tr><tr><td>Senior debt</td><td>A2</td><td>A</td><td>A+</td></tr><tr><td>Subordinated debt</td><td>A3</td><td>A-</td><td>A</td></tr><tr><td>Long-term deposits</td><td>Aa2</td><td>A</td><td>AA-</td></tr><tr><td>Short-term deposits</td><td>P-1</td><td>A-1</td><td>F+</td></tr><tr><td>Short-term notes</td><td>P-1</td><td>A-1</td><td>F1</td></tr></table>

Question: What is the ratio of all elements that are in the range of 20 and 50 to the sum of elements for 1st Liens (c)?
Answer: 0.26493
Reasoning program: add(21,28), add(#0,22), divide(#1,268)