PNC has developed an array of products designed specifically to reduce costs and improve internal operating efficiency. Our dedicated professionals understand the complexities of a bank’s income statement and are driven to find solutions that boost the bottom line.
Comprehensive Treasury Management Solutions
PNC’s treasury management solutions operate behind the scenes to enhance your own internal operations, to help you increase your revenues and shareholder value.
- Streamline deposit preparation, accelerate funds availability and reduce processing costs with PNC’s Image Cash Letter service. XD9.37 formatted image files can be transmitted to PNC 24 hours a day/7 days a week for processing of deposited items.
- Provide a secure process for supplying U.S. dollar and approved foreign currency to your branch network with PNC’s Cash Logistics service. We accept and process large volumes of currency/coin delivered to and from your branch network by your armored carrier service.
- Automate transaction allocation and reconciliation with PNC’s Purchasing Card. With the use of our purchasing card program, you can reduce costs associated with your procurement of goods and services as well as extend your payables process.
- Automate the steps between procurement and payment in your accounts payable process with A/P Advantage. You can use PNC’s premier lockbox network to receive and scan your paper invoices, eliminating the inefficiencies of paper-based processes.
- Access to information reporting, transaction initiation and client service anytime and from anywhere, 24x7, through PINACLE®. PINACLE FX offers a secure online foreign exchange payment mechanism for real-time foreign currency payments.
Customized Interest Rate Risk Hedging Solutions
Balance Sheet Hedging is an effective tool for community banks to utilize interest rate swaps, caps and floors to manage their balance sheet sensitivities. PNC has developed effective hedging strategies for bank clients by focusing on specific client needs and structuring customized solutions.
A few common hedging applications include:
- Trust Preferred Hedging - Fix the rate on a core piece of capital at an historically attractive level
- FHLB Borrowings – The fixed rate on swapping FHLB Borrowings has historically been below a comparable FHLB fixed rate term advance.
- Index-Linked Deposits – Fixed rate swaps and/or caps can be utilized to lock the rate on core deposits and hedge interest rate payments.
- Pools of Floating Rate Loans – Receive fixed interest payments through swaps tied to a specific index that is related to a pool of floating rate loans.
- Floating Rate Loans with Embedded Floors – Caps and corridor structures can be utilized to hedge the margin compression that will occur as floating rates rise to the floor
PNC's Derivative Products Group consists of over 30 professionals dedicated to providing detailed market knowledge and transaction structuring expertise. Product solutions can be tailored to help you manage interest rate and currency exposure.
- Manage a trading book in excess of $100 billion
- Offer a number of no up-front cost, multi-year hedging strategies
- Provide competitive and timely market-based pricing
- Create customized hedging, monetizing and risk management solutions to meet specific client needs
- Transaction execution in all major indices – Prime, LIBOR, Fed Funds, Commercial Paper, BMA and CMS
Asset Specific Financing Solutions to Help Reduce Expenses
PNC Equipment Finance, with over $9 billion in assets under management, offers asset specific financing solutions, including loans, leases, and lines of credit to both banks directly and their corporate clients. PNC Equipment Finance has the expertise and leadership, the strength of PNC Bank's funding resources and the flexibility to deliver the asset acquisition options banks require.
Our solutions include:
- Loan and lease products for future capital expenditures
- Capital raising through a sale-leaseback of existing equipment assets owned by your institution
- Purchase equipment loan and lease portfolios
- Provide capital to your institution's clients for larger ticket equipment loans and leases
We know our clients' time is valuable, so we help Regional & Community Banks handle the many issues surrounding investments in business assets, including:
- Capital Raising: We can provide an alternative, low cost source of capital to finance up to 100% of future capital expenditures, or monetize existing assets through a sale- leaseback.
- Asset Risk Management: Our ability to manage technological obsolescence and other equipment management risks, PNC Equipment Finance can provide a variety of end of term options.
- Tax Management: Allocate tax benefits associated with equipment acquisitions to the most efficient party, minimizing your institution's after-tax cost of financing. Ability to manage an inefficient tax position, net operating loss or loss carry forward, and expedite emergence from alternative minimum tax.
- Balance Sheet Management: Improve multiples and financial ratios, including leverage and return on assets.
- Expand Commercial Business: Depending on transaction size, PNC Equipment Finance may be able to provide equipment loans and tax leases to your institution’s credit-worthy client base.
Utilizing PNC’s bundled package, PNC Institutional Investments offers non- discretionary trustee services, daily record keeping and administration, educational services and an array of investment options. PNC’s Vested Interest® is a turn-key solution for defined contribution/401(k) plan services.
Offered through PNC Institutional Investments, the service offers nondiscretionary trustee services and an array of investment options. All key services are provided in-house to achieve efficiency and accuracy at a significantly reduced cost. With over 500 defined contribution plan clients and billions of dollars in plan assets under administration, Vested Interest® has the scale to offer significant cost savings.
- 513 defined contribution plan clients
- $5.6 billion in plan assets under administration
- Over 174,000+ plan participants served
All key services and solutions are provided in-house in order to achieve efficiency and accuracy at a reduced cost. Included are:
- Compliance: ADP/ACP, Top Heavy and Annual Additions testing, Form 5500 preparation and prototype plan documents
- Investment Selection: 200+ mutual funds from 25 mutual fund families; Integrated online brokerage window
- Conversion: Dedicated team provides seamless conversion process
- Employee Education: Morningstar® Retirement ManagerSM assists choosing an asset allocation mix for retirement; Education seminars