AmazonScience/document-haystack

1• Our ability to manage operational risks related to new products and services, changes in processes and procedures or the 2implementation of new technology.3Our financial performance is also substantially affected by a number of external factors outside of our control, including the following:4• Global and domestic economic conditions, 5• The actions by the Federal Reserve, U.S. Treasury and other government agencies, including those that impact money supply 6and market interest rates and inflation,7• The level of, and direction, timing and magnitude of movement in, interest rates and the shape of the interest rate yield curve,8• The functioning and other performance of, and availability of liquidity in, U.S. and global financial markets, including capital 9markets,10• The impact of tariffs and other trade policies of the U.S. and its global trading partners,11• Changes in the competitive landscape,12• Impacts of changes in federal, state and local governmental policy, including on the regulatory landscape, capital markets, 13taxes, infrastructure spending and social programs,14• The impact of market credit spreads on asset valuations,15• The ability of customers, counterparties and issuers to perform in accordance with contractual terms, and the resulting impact 16on our asset quality,17• The effect of climate change on our business and performance, including indirectly through impacts on our customers,18• Loan demand, utilization of credit commitments and standby letters of credit, and19• The impact on customers and changes in customer behavior due to changing business and economic conditions or regulatory 20or legislative initiatives.21For additional information on the risks we face, see Item 1A Risk Factors and the Cautionary Statement Regarding Forward-Looking 22Information section in this Item 7.23Acquisition of BBVA USA Bancshares, Inc.24On June 1, 2021, PNC acquired BBVA, a U.S. financial holding company conducting its business operations primarily through its 25U.S. banking subsidiary, BBVA USA. PNC paid $11.5 billion in cash as consideration for the acquisition.26On October 8, 2021, BBVA USA merged into PNC Bank. On October 12, 2021, PNC converted approximately 2.6 million customers, 279,000 employees and over 600 branches across seven states. Our results of operations and balance sheets for all periods presented in 28this Report reflect the benefit of BBVA’s acquired businesses for the period since the acquisition closed on June 1, 2021.29Presentation of Noninterest Income30Effective for the first quarter of 2022, PNC updated the presentation of its noninterest income categorization to be based on product 31and service type, and accordingly, has changed the basis of presentation of its noninterest income revenue streams to: (i) Asset 32management and brokerage, (ii) Capital markets related, (iii) Card and cash management, (iv) Lending and deposit services, (v) 33Residential and commercial mortgage and (vi) Other noninterest income. For a description of each updated noninterest income 34revenue stream, see Note 1 Accounting Policies. Additionally, in the fourth quarter of 2022, PNC updated the name of the noninterest 35income line item “Capital markets related” to “Capital markets and advisory.” This update did not impact the components of the 36category. All periods presented herein reflect these changes.37Signature Bank Portfolio Acquisition38On October 2, 2023, PNC acquired a portfolio of capital commitments facilities from Signature Bridge Bank, N.A. through an 39agreement with the FDIC as receiver of the former Signature Bank, New York. The acquired portfolio represented approximately 40$16.0 billion in total commitments, including approximately $9.0 billion of funded loans, at the time of acquisition. 41Workforce Reduction42During the fourth quarter of 2023, PNC implemented a workforce reduction that is expected to reduce 2024 personnel expense by 43approximately $325 million annually, on a pre-tax basis. PNC incurred expenses of $150 million in the fourth quarter of 2023 in 44connection with this workforce reduction.45FDIC Special Assessment46In November 2023, the FDIC approved a final rule to implement a special assessment to recover the loss to the Deposit Insurance 47Fund associated with protecting uninsured depositors following the closures of Silicon Valley Bank and Signature Bank. PNC 48 4938    The PNC Financial Services Group, Inc. – 2023 Form 10-K