PNC Financial Cuts 2001 Earnings Again

PNC Financial Services Group said it reduced 2001 earnings by an additional $35 million after discovering the bank incorrectly accounted for the sale of its mortgage banking business.

The Pittsburgh company, which in January was forced by the Federal Reserve to cut 2001 net income by $155 million, said an entry for the sale of its $605-million residential mortgage unit to Washington Mutual Inc. was accounted for as retained earnings instead of discontinued operations.

The bookkeeping error was found during its year-end review, the company said.