Loan writedown drops PNC's 4Q earnings forecast

PNC Financial Services Group Inc. on Wednesday said it expects to report fourth-quarter earnings in the range of 60 cents to 75 cents a share, and adjusted earnings between $1 and $1.15 a share.

Analysts, on average, had projected profit of $1.39 a share.

Pittsburgh-based PNC (NYSE: PNC) said the changes reflect a writedown of $1.5 billion in commercial mortgage loans, weak trading results due to market volatility and a higher provision for credit losses stemming from residential real estate development.

Most of the writedown comes from bad residential real estate loans in Maryland and Northern Virginia, the Baltimore Sun reported Thursday. PNC acquired Baltimore-based Mercantile Bankshares earlier this year.

PNC is the Tri-State's fourth-largest bank, with about $2.4 billion in local deposits, according to June figures from the Federal Deposit Insurance Corp.

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source: bizjournals.com