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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Goodwill by Business Segment
Goodwill
Allocations of Goodwill by business segment at December 31, 2023, 2022 and 2021 follow:
Table 54: Goodwill by Business Segment
| In millions | Retail Banking | Corporate & Institutional Banking | Asset Management Group | Total |
|---|---|---|---|---|
| Balance as of December 31, 2023 | $6,473 | $4,270 | $189 | $10,932 |
| Other | (55) | (55) | ||
| Balance as of December 31, 2022 | $6,473 | $4,325 | $189 | $10,987 |
| Other | 71 | 71 | ||
| Balance as of December 31, 2021 | $6,473 | $4,254 | $189 | $10,916 |
We review goodwill in each of our reporting units for impairment at least annually, in the fourth quarter, or more frequently if events occur or circumstances have changed significantly from the annual test date. Based on the results of our analysis, there wereno impairment charges related to goodwill in 2023, 2022 or 2021. See Note 1 Accounting Policies for additional information regarding the goodwill impairment test.
Mortgage Servicing Rights
We recognize the right to service mortgage loans for others as an intangible asset when the benefits of servicing are expected to be more than adequate compensation to a servicer for performing the servicing. MSRs are recognized either when purchased or when originated loans are sold with servicing retained. MSRs totaled $3.7 billion at December 31, 2023 and $3.4 billion at December 31, 2022, and consisted of loan servicing contracts for commercial and residential mortgages measured at fair value.
Commercial Mortgage Servicing Rights
We recognize gains (losses) on changes in the fair value of commercial MSRs. Commercial MSRs are subject to changes in value from actual or expected prepayment of the underlying loans and defaults as well as market driven changes in interest rates. We manage this risk by economically hedging the fair value of commercial MSRs with securities, derivative instruments and resale agreements which are expected to increase (or decrease) in value when the value of commercial MSRs decreases (or increases).
The fair value of commercial MSRs is estimated by using a discounted cash flow model incorporating inputs for assumptions as to constant prepayment rates, discount rates and other factors determined based on current market conditions and expectations.
The PNC Financial Services Group, Inc. –2023 Form 10-K 127
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