PNC Financial Services Group Inc. will sell or securitize $2 billion in residential mortgage loans and replace them with other residential loans with higher yields.

In an SEC filing Thursday, the Pittsburgh-based bank said the move would result in a $50 million pretax loss in the third quarter, but boost net income by $25 million a year.

On Sept. 8, PNC announced it would sell $6 billion in securities at a $200 million loss to reduce interest-rate risks. Half of the proceeds from that sale were to be used to purchase new securities, and the remainder to reduce wholesale funding. The rebalancing was expected to boost revenue by $50 million annually from improved yields and a net reduction in total assets.

PNC also said a deal in which its BlackRock Inc. money management unit acquires Merrill Lynch’s investment management business is expected to close today. The $9.5 billion transaction will halve PNC’s stake in BlackRock to 34 percent, but the larger company will contribute more to PNC’s bottom line, Reuters reported.

Because BlackRock won’t release its third-quarter results until Oct. 30, PNC will release its results the following day, the company said.

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription