PNC FINANCIAL SERVICES GROUP INC
For the period ended Dec 31, 2023. Filed Feb 21, 2024.
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FY2023 · Filed Feb 21, 2024
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Change in Nonperforming Assets
The following table provides details on the change in nonperforming assets for the years ended December 31, 2023 and 2022:
Table 22: Change in Nonperforming Assets
| In millions | 2023 | 2022 |
|---|---|---|
| January 1 | $2,019 | $2,506 |
| New nonperforming assets | 1,999 | 1,523 |
| Charge-offs and valuation adjustments | (452) | (370) |
| Principal activity, including paydowns and payoffs | (831) | (868) |
| Asset sales and transfers to loans held for sale | (71) | (52) |
| Returned to performing status | (448) | (720) |
| December 31 | $2,216 | $2,019 |
As of December 31, 2023, approximately 97% of total nonperforming loans were secured by collateral.
Loan Delinquencies
We regularly monitor the level of loan delinquencies and believe these levels are a key indicator of credit quality in our loan portfolio. Measurement of delinquency status is based on the contractual terms of each loan. Loans that are 30 days or more past due are considered delinquent. Loan delinquencies include government insured or guaranteed loans, loans accounted for under the fair value option and PCD loans. Amounts exclude loans held for sale.
We manage credit risk based on the risk profile of the borrower, repayment sources, underlying collateral, and other support given current events, economic conditions and expectations. We refine our practices to meet the changing environment, such as inflation levels, industry specific risks, interest rate levels, the level of consumer savings and deposit balances, and structural and secular changes fostered by the pandemic. To mitigate losses and enhance customer support, we offer loan modifications and collection programs to assist our customers. The CARES Act credit reporting rules expired in the third quarter of 2023 and, as such, delinquency status at December 31, 2023 is being reported for all loans based on the contractual terms of the loan. Amounts as of December 31, 2022 continue to be presented in accordance with the credit reporting rules under the CARES Act, which required certain loans
The PNC Financial Services Group, Inc. –2023 Form 10-K 63 modified due to pandemic-related hardships to not be reported as past due based on the contractual terms of the loan, even when borrowers may not have made payments on their loans during the modification period.
The following table presents a summary of accruing loans past due by delinquency status:
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