株探米国株
エドガーで原本を確認する
0000713676false00007136762026-07-152026-07-15

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
July 15, 2026
Date of Report (Date of earliest event reported)
THE PNC FINANCIAL SERVICES GROUP, INC.
(Exact name of registrant as specified in its charter)
Commission File Number 001-09718
Pennsylvania 25-1435979
(State or other jurisdiction of (I.R.S. Employer
incorporation) Identification No.)
The Tower at PNC Plaza
300 Fifth Avenue
Pittsburgh, Pennsylvania 15222-2401
(Address of principal executive offices, including zip code)
(888) 762-2265
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐
 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
 Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
 Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
 Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to 12(b) of the Act:
Title of Each Class Trading Symbol(s)
 Name of Each Exchange
    on Which Registered    
Common Stock, par value $5.00 PNC New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company  ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐


Item 2.02 Results of Operations and Financial Condition.

On July 15, 2026, The PNC Financial Services Group, Inc. (“PNC”) issued a press release regarding PNC’s earnings and business results for the second quarter of 2026. A copy of PNC’s press release is included in this Report as Exhibit 99.1 and is furnished herewith.

In connection therewith, PNC provided supplementary financial information on its website. A copy of PNC’s supplementary financial information is included in this Report as Exhibit 99.2 and is furnished herewith.

Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.  
Number Description Method of Filing
99.1 Furnished herewith
99.2 Furnished herewith
104 The cover page of this Current Report on Form 8-K, formatted in Inline XBRL.


- 2 -


SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
THE PNC FINANCIAL SERVICES GROUP, INC.
(Registrant)
Date: July 15, 2026 By: /s/ Gregory H. Kozich
Gregory H. Kozich
Senior Vice President and Controller
 - 3 -

EX-99.1 2 q22026financialhighlightsa.htm EX-99.1 Document
newsrelease_headerimage002a.jpg
Exhibit 99.1
PNC Reports Second Quarter 2026 Net Income of $2.1 Billion,
$4.81 Diluted EPS or $4.85 as Adjusted
Generated record revenue, net interest income and fee income
Increased quarterly common stock dividend 30 cents, or 18%, to $2.00 per share
PITTSBURGH, July 15, 2026 – The PNC Financial Services Group, Inc. (NYSE: PNC) today reported:
For the quarter
In millions, except per share data and as noted 2Q26 1Q26 2Q25
Second Quarter Highlights

▪
Financial Results
Comparisons reflect 2Q26 vs. 1Q26
Net interest income (NII) $ 4,107 $ 3,961 $ 3,555
Income Statement
▪Adjusted EPS was $4.85 which excludes the net impact of FirstBank integration costs and 2Q26 significant items, resulting in a 4 cent reduction to EPS
▪Generated 3% positive operating leverage; PPNR increased 16%; ROTCE of 17.9%
▪NII increased 4%; NIM of 2.96% increased 1 bp
▪Fee income increased 10%, driven by strong capital markets activity
▪Noninterest expense of $4.1 billion included $140 million of PNC Foundation contribution expense, $121 million of integration expenses and the impact of increased business activity
Balance Sheet
▪Average loans increased $12.3 billion, or 4%
▪Average deposits were stable
–Average noninterest-bearing deposits grew 4%
–Rate paid on interest-bearing deposits declined 5 basis points
▪Net loan charge-offs were $226 million, or 0.25% annualized to average loans
▪Maintained strong capital position
–CET1 capital ratio of 9.9%
–Returned $1.3 billion to shareholders, including $0.6 billion of share repurchases
–Increased quarterly common stock dividend 30 cents, or 18% to $2.00 per share
▪Converted FirstBank customers, employees, systems and branches as of June 22, 2026


Fee income (non-GAAP)
2,279 2,079 1,894
Other noninterest income 489 125 212
Noninterest income 2,768 2,204 2,106
Revenue 6,875 6,165 5,661
Noninterest expense 4,098 3,768 3,383
Pretax, pre-provision earnings (PPNR) (non-GAAP)
2,777 2,397 2,278
Provision for credit losses 191 210 254
Net income 2,055 1,772 1,643
Per Common Share
Diluted earnings per share (EPS) $ 4.81 $ 4.13 $ 3.85
EPS impact of integration costs and 2Q26 significant items 0.04 0.19 —
Diluted EPS - as adjusted (non-GAAP)
4.85 4.32 3.85
Average diluted common shares outstanding 403 405 397
Book value 145.52 143.65 131.61
Tangible book value (TBV) (non-GAAP)
111.09 109.42 103.96
Balance Sheet & Credit Quality
Average loans In billions
$ 363.2 $ 350.9 $ 322.8
Noninterest-bearing deposits In billions
103.5 99.1 93.1
Interest-bearing deposits In billions
353.5 359.3 329.8
Average deposits In billions
457.0 458.4 423.0
Accumulated other comprehensive income (loss) (AOCI)
In billions
 (4.1) (3.8) (4.7)
Net loan charge-offs 226  253  198 
Allowance for credit losses to total loans 1.48  % 1.52  % 1.62  %
Selected Ratios
Return on average common shareholders’ equity 13.61  % 11.92  % 12.20  %
Return on avg. tangible common equity (ROTCE) (non-GAAP)
17.88  15.66  15.55 
Return on average assets 1.34  1.19  1.17 
Net interest margin (NIM) (non-GAAP)
2.96  2.95  2.80 
Noninterest income to total revenue 40  36  37 
Efficiency 60  61  60 
Common equity tier 1 (CET1) capital ratio 9.9  10.1  10.5 
See non-GAAP financial measures in the Consolidated Financial Highlights accompanying this release. Totals may not sum due to rounding. 1Q26 Diluted EPS - as adjusted, excludes $98 million of integration costs related to the FirstBank acquisition.
From Bill Demchak, PNC Chairman and Chief Executive Officer:
“Our strong second quarter performance reflects the disciplined execution of our growth strategy and positions us well for the second half of the year. We remain focused on delivering results that support our customers, shareholders and communities. Our successful FirstBank conversion, strong capital position and announced dividend increase provide further evidence of the strength and resilience of our franchise.”
- more -


PNC Reports Second Quarter 2026 Net Income of $2.1 Billion, $4.81 Diluted EPS or $4.85 As Adjusted – Page 2
Acquisition of FirstBank
As of June 22, 2026, PNC has converted approximately 780,000 customers, more than 1,620 employees and 95 branches across Colorado and Arizona, merging FirstBank into PNC Bank. Second quarter of 2026 results include the full quarter benefit of FirstBank. First quarter of 2026 results include FirstBank operations since acquisition close on January 5, 2026.
Integration Costs and 2Q26 Significant Items
In the second quarter of 2026, PNC incurred integration costs related to the FirstBank acquisition of $127 million. Results for the quarter also reflected the impact of several significant items. PNC participated in the Visa exchange program monetizing 50% of its Visa Class B-2 shares resulting in a gain of $448 million and converting its remaining holdings into 0.9 million of Visa Class B-3 shares. This gain was substantially offset by a $140 million PNC Foundation contribution expense, a $139 million securities loss related to the repositioning of approximately $4 billion of available-for-sale investment securities into higher yielding instruments, and negative $85 million of Visa Class B-3 derivative fair value adjustments, driven by the extension of anticipated litigation resolution timing. The combined impact of both integration costs and 2Q26 significant items resulted in a $15 million decline in net income, or a 4 cent reduction to EPS.
Impact of Integration Costs and 2Q26 Significant Items
In millions 2Q26 Integration Costs and Significant Items
Noninterest Income Integration Costs Significant Items Net Impact
Gain on exchange of Visa Class B-2 shares $ 448  $ 448 
Visa Class B-3 derivative fair value adjustments (85) (85)
Loss on sale of securities (139) (139)
Integration costs $ (6) (6)
Noninterest income impact of integration costs
and 2Q26 significant items		 $ (6) $ 224  $ 218 
Noninterest Expense
Contribution to PNC Foundation $ 140  $ 140 
Integration costs $ 121  121 
Noninterest expense impact of integration costs
and 2Q26 significant item		 $ 121  $ 140  $ 261 
Net Income and EPS
Pretax, pre-provision impact $ (127) $ 84  $ (43)
Income taxes (benefit) (26) (2) (28)
Net Income decrease from integration costs
and 2Q26 significant items		 $ (101) $ 86  $ (15)
EPS impact of integration costs and 2Q26 significant items $ (0.25) $ 0.21  $ (0.04)
Income taxes on integration costs and 2Q26 significant items are calculated at a statutory tax rate of 21% on pretax, pre-provision earnings. Significant items tax impact also includes the benefit of shares donated to the PNC Foundation.


Income Statement Highlights
Second quarter 2026 compared with first quarter 2026
▪Total revenue of $6.9 billion increased $710 million, or 12%, driven by growth in both noninterest income and net interest income.
–Net interest income of $4.1 billion increased $146 million, or 4%, and included the benefit of commercial loan growth and higher noninterest-bearing deposit balances.
- more -


PNC Reports Second Quarter 2026 Net Income of $2.1 Billion, $4.81 Diluted EPS or $4.85 As Adjusted – Page 3
•Net interest margin increased 1 basis point to 2.96%.
–Fee income of $2.3 billion increased $200 million, or 10%, driven by growth across all fee categories, including record capital markets and advisory revenue.
–Other noninterest income of $489 million included both integration costs and 2Q26 significant items totaling $218 million as well as positive valuation adjustments of private equity investments.
▪Noninterest expense of $4.1 billion increased $330 million, or 9%, and included $261 million of both integration expenses and 2Q26 significant items, compared to $97 million of integration expenses in the first quarter. Excluding these items from each quarter, noninterest expense was $3.8 billion, increasing $166 million, or 5%, primarily due to increased business activity.
▪Provision for credit losses was $191 million in the second quarter and reflected portfolio activity as well as updates to macroeconomic factors.
▪The effective tax rate was 20.5% for the second quarter and 19.0% for the first quarter.
Balance Sheet Highlights
Second quarter 2026 compared with first quarter 2026 or June 30, 2026 compared with March 31, 2026
▪Average loans of $363.2 billion increased $12.3 billion, or 4%. Average commercial loans increased $13.0 billion, or 5%, driven by strong new production and increased utilization. Average consumer loans decreased $0.7 billion, or 1%, due to declines in both residential mortgage and auto loans, partially offset by growth in credit card loans.
–Loans at June 30, 2026 of $368.0 billion increased $7.0 billion, or 2%, from March 31, 2026 and included commercial loan growth, reflecting strong new production.
▪Credit quality performance:
–Delinquencies of $1.4 billion decreased $122 million, or 8%, due to lower commercial loan delinquencies.
–Total nonperforming loans of $2.0 billion decreased $216 million, or 10%, driven by lower commercial real estate nonperforming loans.
–Net loan charge-offs of $226 million decreased $27 million primarily due to FirstBank acquired net loan charge-offs of $45 million recognized in the first quarter.
–The allowance for credit losses of $5.5 billion was stable. The allowance for credit losses to total loans was 1.48% at June 30, 2026 and 1.52% at March 31, 2026.
▪Average investment securities of $147.1 billion increased $2.6 billion, or 2%, reflecting higher residential mortgage-backed securities.
▪Average deposits of $457.0 billion were stable. The rate paid on interest-bearing deposits of 1.91%, declined 5 basis points.
▪PNC maintained a strong capital and liquidity position:
–On July 6, 2026, the PNC board of directors raised the quarterly cash dividend on common stock to $2.00 per share, an increase of 30 cents, or 18%. The dividend is payable on August 5, 2026 to shareholders of record at the close of business July 20, 2026.
–PNC returned $1.3 billion of capital to shareholders, reflecting $0.7 billion of dividends on common shares and $0.6 billion of common share repurchases.
–Share repurchase activity in the third quarter of 2026 is expected to approximate second quarter of 2026 share repurchase levels.
–The Basel III common equity tier 1 capital ratio was an estimated 9.9% at June 30, 2026 and was 10.1% at March 31, 2026.
- more -


PNC Reports Second Quarter 2026 Net Income of $2.1 Billion, $4.81 Diluted EPS or $4.85 As Adjusted – Page 4
–PNC’s average LCR for the three months ended June 30, 2026 was 106%, exceeding the regulatory minimum requirement throughout the quarter.
Earnings Summary
In millions, except per share data 2Q26 1Q26 2Q25
Net income $ 2,055  $ 1,772  $ 1,643 
Net income attributable to diluted common shareholders $ 1,941  $ 1,675  $ 1,532 
Net income attributable to diluted common shareholders - as adjusted (non-GAAP)
$ 1,956  $ 1,752  $ 1,532 
Diluted earnings per common share $ 4.81  $ 4.13  $ 3.85 
Diluted earnings per common share - as adjusted (non-GAAP)
$ 4.85  $ 4.32  $ 3.85 
Average diluted common shares outstanding 403  405  397 
Cash dividends declared per common share $ 1.70  $ 1.70  $ 1.60 
See non-GAAP financial measures in the Consolidated Financial Highlights accompanying this release.

The Consolidated Financial Highlights accompanying this news release include additional information regarding reconciliations of non-GAAP financial measures to reported (GAAP) amounts. This information supplements results as reported in accordance with GAAP and should not be viewed in isolation from, or as a substitute for, GAAP results. Information in this news release, including the financial tables, is unaudited.
CONSOLIDATED REVENUE REVIEW
Revenue Change Change
2Q26 vs 2Q26 vs
In millions 2Q26 1Q26 2Q25 1Q26 2Q25
Net interest income $ 4,107  $ 3,961  $ 3,555  4  % 16  %
Noninterest income 2,768  2,204  2,106  26  % 31  %
Total revenue $ 6,875  $ 6,165  $ 5,661  12  % 21  %

Total revenue for the second quarter of 2026 increased $710 million compared to the first quarter of 2026 and $1.2 billion compared to the second quarter of 2025. In both comparisons, the increase was driven by both higher noninterest income and net interest income.
Net interest income of $4.1 billion increased $146 million from the first quarter of 2026 and $552 million from the second quarter of 2025. In each comparison, the increase included the benefit of commercial loan growth and higher noninterest-bearing deposit balances. In comparison to the second quarter of 2025, the increase also reflected the benefit of FirstBank and lower funding costs.
Net interest margin was 2.96% in the second quarter of 2026, increasing 1 basis point from the first quarter of 2026. Compared to the second quarter of 2025, net interest margin expanded 16 basis points.
- more -


PNC Reports Second Quarter 2026 Net Income of $2.1 Billion, $4.81 Diluted EPS or $4.85 As Adjusted – Page 5
Noninterest Income Change Change
2Q26 vs 2Q26 vs
In millions 2Q26 1Q26 2Q25 1Q26 2Q25
Asset management and brokerage $ 440  $ 420  $ 391  5  % 13  %
Capital markets and advisory 577  463  321  25  % 80  %
Card and cash management 772  738  737  5  % 5  %
Lending and deposit services 346  340  317  2  % 9  %
Residential and commercial mortgage 144  118  128  22  % 13  %
Fee income (non-GAAP)
2,279  2,079  1,894  10  % 20  %
Other 489  125  212  291  % 131  %
Total noninterest income $ 2,768  $ 2,204  $ 2,106  26  % 31  %
Integration costs and 2Q26 significant items 218  (1) — 
Noninterest income, excluding integration costs and 2Q26 significant items (non-GAAP)
$ 2,550  $ 2,205  $ 2,106  16  % 21  %
See non-GAAP financial measures in the Consolidated Financial Highlights accompanying this release.

Noninterest income for the second quarter of 2026 of $2.8 billion included $218 million of both integration costs and 2Q26 significant items. The first quarter of 2026 included $1 million of FirstBank related integration costs. Excluding these items from each quarter, noninterest income was $2.6 billion, increasing $345 million, or 16%, from the first quarter of 2026 and $444 million, or 21%, from the second quarter of 2025.
In comparison to the first quarter of 2026, fee income increased $200 million, or 10%, driven by growth across all fee categories. Asset management and brokerage fees increased $20 million as a result of higher average equity markets and increased client activity. Capital markets and advisory revenue increased $114 million driven by record merger and acquisition advisory fees as well as strong activity across other capital markets businesses. Card and cash management revenue increased $34 million due to seasonally higher consumer transaction volumes and growth in treasury management product revenue. Lending and deposit related revenue increased $6 million primarily due to increased customer activity. Residential and commercial mortgage revenue increased $26 million primarily driven by a first quarter of 2026 negative valuation of residential mortgage servicing rights, net of economic hedge, which did not recur.
Compared to the second quarter of 2025, fee income increased $385 million, or 20%, driven by an increase in capital markets and advisory revenue of $256 million as well as broad-based growth across the other fee income categories.
Other noninterest income of $489 million in the second quarter of 2026 included both integration costs and 2Q26 significant items totaling $218 million as well as positive valuation adjustments of private equity investments.
- more -


PNC Reports Second Quarter 2026 Net Income of $2.1 Billion, $4.81 Diluted EPS or $4.85 As Adjusted – Page 6
CONSOLIDATED EXPENSE REVIEW
Noninterest Expense Change Change
2Q26 vs 2Q26 vs
In millions 2Q26 1Q26 2Q25 1Q26 2Q25
Personnel $ 2,273  $ 2,106  $ 1,889  8  % 20  %
Occupancy 252  262  235  (4) % 7  %
Equipment 435  415  394  5  % 10  %
Marketing 110  87  99  26  % 11  %
Other 1,028  898  766  14  % 34  %
Total noninterest expense $ 4,098  $ 3,768  $ 3,383  9  % 21  %
Integration costs and 2Q26 significant items 261  97  — 
Noninterest expense, excluding integration costs and 2Q26 significant items (non-GAAP)
$ 3,837  $ 3,671  $ 3,383  5  % 13  %
See non-GAAP financial measures in the Consolidated Financial Highlights accompanying this release.

Noninterest expense for the second quarter of 2026 of $4.1 billion included both integration costs and 2Q26 significant items totaling $261 million. The first quarter of 2026 included $97 million of FirstBank integration costs.
Noninterest expense excluding both integration costs and 2Q26 significant items was $3.8 billion, increasing $166 million from the first quarter of 2026 and $454 million compared to the second quarter of 2025. In each comparison the increase reflected the impact of increased business activity, higher marketing spend and continued investments to support business growth. Compared with the second quarter of 2025, the increase also included the impact of FirstBank operating expenses.
The effective tax rate was 20.5% for the second quarter of 2026, 19.0% for the first quarter of 2026 and 18.8% for the second quarter of 2025.
CONSOLIDATED BALANCE SHEET REVIEW
Loans Change Change
2Q26 vs 2Q26 vs
In billions 2Q26 1Q26 2Q25 1Q26 2Q25
Average
Commercial and industrial $ 223.7  $ 211.4  $ 191.5  6  % 17  %
Commercial real estate 35.1  34.4  31.8  2  % 10  %
Commercial $ 258.8  $ 245.7  $ 223.4  5  % 16  %
Consumer 104.4  105.2  99.4  (1) % 5  %
Average loans $ 363.2  $ 350.9  $ 322.8  4  % 13  %
Quarter end
Commercial and industrial $ 227.9  $ 221.2  $ 195.8  3  % 16  %
Commercial real estate 36.0  34.8  31.3  3  % 15  %
Commercial $ 263.9  $ 256.0  $ 227.0  3  % 16  %
Consumer 104.1  105.0  99.3  (1) % 5  %
Total loans $ 368.0  $ 360.9  $ 326.3  2  % 13  %
Totals may not sum due to rounding
- more -


PNC Reports Second Quarter 2026 Net Income of $2.1 Billion, $4.81 Diluted EPS or $4.85 As Adjusted – Page 7
Average loans for the second quarter of 2026 increased $12.3 billion compared to the first quarter of 2026 and $40.4 billion compared to the second quarter of 2025.
Average commercial loans increased $13.0 billion and $35.4 billion compared to the first quarter of 2026 and the second quarter of 2025, respectively. In comparison to the first quarter of 2026, growth was driven by strong new production and increased utilization. Compared to the second quarter of 2025, the increase was attributable to strong new production as well as acquired FirstBank loans.
Average consumer loans decreased $0.7 billion compared to the first quarter of 2026, primarily due to declines in both residential mortgage and auto loans, partially offset by growth in credit card loans. Compared to the second quarter of 2025, average consumer loans increased $5.0 billion driven by the benefit of FirstBank loans.
Loans at June 30, 2026 increased $7.0 billion and $41.6 billion from March 31, 2026 and June 30, 2025, respectively. In each comparison, the increase included growth in commercial loans, reflecting strong new production. Compared to the second quarter of 2025, the increase was also attributable to acquired FirstBank commercial and consumer loans.
Average Investment Securities Change Change
2Q26 vs 2Q26 vs
In billions 2Q26 1Q26 2Q25 1Q26 2Q25
Available for sale $ 73.7  $ 71.6  $ 67.8  3  % 9  %
Held to maturity 73.4  72.9  74.2  1  % (1) %
Total $ 147.1  $ 144.5  $ 141.9  2  % 4  %
Totals may not sum due to rounding
Average investment securities of $147.1 billion in the second quarter of 2026 increased $2.6 billion compared to the first quarter of 2026 and $5.2 billion compared to the second quarter of 2025. In both comparisons, the increase reflected higher residential mortgage-backed securities.
During the second quarter of 2026, PNC completed a repositioning of the investment securities portfolio, selling approximately $4 billion of available-for-sale securities with a weighted average yield of approximately 3.2%. The proceeds from the sale were then redeployed into an equivalent amount of investment securities with a weighted average yield of approximately 4.4%.
The duration of the investment securities portfolio was 3.6 years as of June 30, 2026 and March 31, 2026 and 3.4 years as of June 30, 2025. Net unrealized losses on available-for-sale securities were $2.1 billion at both June 30, 2026 and March 31, 2026 and $2.6 billion at June 30, 2025.
- more -


PNC Reports Second Quarter 2026 Net Income of $2.1 Billion, $4.81 Diluted EPS or $4.85 As Adjusted – Page 8
Average Deposits Change Change
2Q26 vs 2Q26 vs
In billions 2Q26 1Q26 2Q25 1Q26 2Q25
Commercial $ 228.2  $ 229.6  $ 205.8  (1) % 11  %
Consumer 228.4  226.9  210.5  1  % 9  %
Brokered time deposits 0.4  1.9  6.7  (79) % (94) %
Total $ 457.0  $ 458.4  $ 423.0  —  8  %
IB % of total avg. deposits 77  % 78  % 78  %
NIB % of total avg. deposits 23  % 22  % 22  %
IB - Interest-bearing
NIB - Noninterest-bearing
Second quarter 2026 average deposits of $457.0 billion were stable compared to the first quarter of 2026, as higher consumer deposits were offset by both lower brokered time deposits and a seasonal decline in commercial deposits. Average deposits increased $34.0 billion compared to the second quarter of 2025 and included the addition of FirstBank deposits.
Average noninterest-bearing deposits as a percentage of total average deposits increased to 23% in the second quarter of 2026 from 22% in both the first quarter of 2026 and second quarter of 2025.
Average Borrowed Funds Change Change
2Q26 vs 2Q26 vs
In billions 2Q26 1Q26 2Q25 1Q26 2Q25
Total $ 78.9 $ 62.9 $ 65.3 25  % 21  %
Avg. borrowed funds to avg. liabilities 14  % 12  % 13  %
Totals may not sum due to rounding

Average borrowed funds of $78.9 billion in the second quarter of 2026 increased $16.1 billion compared to the first quarter of 2026 and $13.6 billion compared to the second quarter of 2025. In both comparisons, the increase was primarily due to higher Federal Home Loan Bank advances.
Capital June 30, 2026 March 31, 2026 June 30, 2025
Common shareholders’ equity In billions
$ 58.1  $ 57.8  $ 51.9 
Accumulated other comprehensive income (loss)
In billions
 $ (4.1) $ (3.8) $ (4.7)
Basel III common equity tier 1 capital ratio * 9.9  % 10.1  % 10.5  %
*June 30, 2026 ratio is estimated.

PNC maintained a strong capital position. Common shareholders’ equity at June 30, 2026 increased $0.3 billion from March 31, 2026 primarily due to net income, partially offset by dividends paid and share repurchases as well as a decline in accumulated other comprehensive income.
As a Category III institution, PNC has elected to exclude accumulated other comprehensive income related to both available-for-sale securities and pension and other post-retirement plans from CET1 capital. Accumulated other comprehensive income was negative $4.1 billion at June 30, 2026 compared to negative $3.8 billion at March 31,
- more -


PNC Reports Second Quarter 2026 Net Income of $2.1 Billion, $4.81 Diluted EPS or $4.85 As Adjusted – Page 9
2026 and negative $4.7 billion at June 30, 2025. The change in each comparison reflected the impact of interest rate movements on securities and swaps and the continued accretion of unrealized losses.
In the second quarter of 2026, PNC returned $1.3 billion of capital to shareholders, reflecting $0.7 billion of dividends on common shares and $0.6 billion of common share repurchases. The Stress Capital Buffer (SCB) framework permits capital return in amounts in excess of SCB minimum levels. Consistent with this framework, PNC had approximately 29% of the 100 million common shares still available for repurchase at June 30, 2026 under the repurchase program previously approved by our board of directors.
Share repurchase activity in the third quarter of 2026 is expected to approximate second quarter of 2026 share repurchase levels. PNC may adjust share repurchase activity depending on market and economic conditions, as well as other factors. PNC’s SCB will be maintained at the regulatory minimum of 2.5% through September 30, 2027.
On July 6, 2026, the PNC board of directors raised the quarterly cash dividend on common stock to $2.00 per share, an increase of 30 cents, or 18%. The dividend is payable on August 5, 2026 to shareholders of record at the close of business July 20, 2026.
At June 30, 2026, PNC was considered “well capitalized” based on applicable U.S. regulatory capital ratio requirements. For additional information regarding PNC’s Basel III capital ratios, see Capital Ratios in the Consolidated Financial Highlights.
CREDIT QUALITY REVIEW
Credit Quality Change Change
June 30, 2026 March 31, 2026 June 30, 2025 06/30/26 vs 06/30/26 vs
In millions 03/31/26 06/30/25
Provision for credit losses (a) $ 191  $ 210  $ 254  $ (19) $ (63)
Net loan charge-offs (a) $ 226  $ 253  $ 198  (11) % 14  %
Allowance for credit losses (b) $ 5,461  $ 5,495  $ 5,282  (1) % 3  %
Total delinquencies (c) $ 1,436  $ 1,558  $ 1,303  (8) % 10  %
Nonperforming loans $ 2,027  $ 2,243  $ 2,108  (10) % (4) %
Net charge-offs to average loans (annualized) 0.25  % 0.29  % 0.25  %
Allowance for credit losses to total loans 1.48  % 1.52  % 1.62  %
Nonperforming loans to total loans 0.55  % 0.62  % 0.65  %
(a) Represents amounts for the three months ended for each respective period
(b) Excludes allowances for investment securities and other financial assets
(c) Total delinquencies represent accruing loans 30 days or more past due
Provision for credit losses was $191 million in the second quarter of 2026 and reflected portfolio activity as well as updates to macroeconomic factors. Provision for credit losses was $210 million in the first quarter of 2026 and $254 million in the second quarter of 2025.
Net loan charge-offs were $226 million in the second quarter of 2026, decreasing $27 million compared to the first quarter of 2026. The decrease was primarily due to FirstBank acquired net loan charge-offs of $45 million recognized in the first quarter. Compared to the second quarter of 2025, net loan charge-offs increased $28 million primarily due to higher commercial loan net charge-offs.
- more -


PNC Reports Second Quarter 2026 Net Income of $2.1 Billion, $4.81 Diluted EPS or $4.85 As Adjusted – Page 10
The allowance for credit losses was $5.5 billion at both June 30, 2026 and March 31, 2026 and $5.3 billion at June 30, 2025. The allowance for credit losses as a percentage of total loans was 1.48% at June 30, 2026, 1.52% at March 31, 2026 and 1.62% at June 30, 2025.
Delinquencies at June 30, 2026 were $1.4 billion, decreasing $122 million from March 31, 2026 due to lower commercial loan delinquencies. Compared to June 30, 2025, delinquencies increased $133 million due to higher consumer loan delinquencies.
Nonperforming loans of $2.0 billion at June 30, 2026 decreased $216 million compared to March 31, 2026 and $81 million compared to June 30, 2025. In both comparisons, the decrease was driven by lower commercial real estate nonperforming loans.
BUSINESS SEGMENT RESULTS
Business Segment Income (Loss)
In millions 2Q26 1Q26 2Q25
Retail Banking $ 1,747  $ 1,349  $ 1,386 
Corporate & Institutional Banking 1,588  1,480  1,318 
Asset Management Group 135  121  132 
Other (1,430) (1,190) (1,209)
Net income excluding noncontrolling interests $ 2,040  $ 1,760  $ 1,627 
Retail Banking Change Change
2Q26 vs 2Q26 vs
In millions 2Q26 1Q26 2Q25 1Q26 2Q25
Net interest income $ 3,291  $ 3,237  $ 3,010  $ 54  $ 281 
Noninterest income $ 1,227  $ 770  $ 782  $ 457  $ 445 
Noninterest expense $ 2,111  $ 2,115  $ 1,890  $ (4) $ 221 
Provision for credit losses $ 120  $ 124  $ 83  $ (4) $ 37 
Earnings $ 1,747  $ 1,349  $ 1,386  $ 398  $ 361 


In billions
Brokerage account client assets $ 97  $ 91  $ 87  $ 6  $ 10 
In billions


Average loans $ 110.5  $ 110.9  $ 97.5  $ (0.4) $ 13.0 
Average deposits $ 271.6  $ 268.2  $ 243.5  $ 3.4  $ 28.1 
Net loan charge-offs In millions
$ 123  $ 118  $ 120  $ 5  $ 3 
During the second quarter of 2026, PNC updated its internal funds transfer pricing methodology. The update resulted in impacts to net interest income and associated income statement line items for all business segments. Prior periods have been adjusted to conform with the current presentation.
Retail Banking Highlights
Second quarter 2026 compared with first quarter 2026
▪Earnings increased 30%, reflecting higher noninterest income and net interest income.
–Noninterest income increased 59% and included a gain of $448 million related to PNC’s participation in the Visa exchange program as well as the benefit of seasonally higher customer activity and positive residential mortgage servicing rights valuation, net of economic hedge. These increases were partially offset by Visa Class B-3 derivative fair value adjustments of negative $85 million.
–Noninterest expense was stable.
- more -


PNC Reports Second Quarter 2026 Net Income of $2.1 Billion, $4.81 Diluted EPS or $4.85 As Adjusted – Page 11
•Brokerage account client assets increased 7%, driven by higher spot equity markets.
▪Average loans were stable.
▪Average deposits increased 1%, primarily due to higher noninterest-bearing and savings deposits.
Second quarter 2026 compared with second quarter 2025
▪Earnings increased 26%, driven by higher noninterest income and net interest income, partially offset by higher noninterest expense as well as a higher provision for credit losses.
–Noninterest income increased 57%, and included the second quarter of 2026 Visa exchange impacts and Visa class B-3 derivative fair value adjustments. The increase also reflects growth in client activity and the addition of FirstBank customers.
–Noninterest expense increased 12%, and included the impact of continued technology and branch investments as well as increased costs related to FirstBank.
•Brokerage account client assets increased 11%, driven by higher spot equity markets.
▪Average loans increased 13%, driven by higher commercial and residential real estate loans, primarily attributable to acquired FirstBank loans.
▪Average deposits increased 12% and included the benefit of acquired FirstBank deposits.
Corporate & Institutional Banking Change Change
2Q26 vs 2Q26 vs
In millions 2Q26 1Q26 2Q25 1Q26 2Q25
Net interest income $ 1,992  $ 1,942  $ 1,814  $ 50  $ 178 
Noninterest income $ 1,291  $ 1,144  $ 1,022  $ 147  $ 269 
Noninterest expense $ 1,131  $ 1,076  $ 950  $ 55  $ 181 
Provision for credit losses $ 76  $ 77  $ 184  $ (1) $ (108)
Earnings $ 1,588  $ 1,480  $ 1,318  $ 108  $ 270 
In billions
Average loans $ 236.1  $ 223.5  $ 208.6  $ 12.6  $ 27.5 
Average deposits $ 158.6  $ 161.2  $ 146.5  $ (2.6) $ 12.1 
Net loan charge-offs In millions
$ 105  $ 92  $ 83  $ 13  $ 22 
During the second quarter of 2026, PNC updated its internal funds transfer pricing methodology. The update resulted in impacts to net interest income and associated income statement line items for all business segments. Prior periods have been adjusted to conform with the current presentation.
Corporate & Institutional Banking Highlights
Second quarter 2026 compared with first quarter 2026
▪Earnings increased 7%, reflecting higher noninterest income and net interest income, partially offset by higher noninterest expense.
–Noninterest income increased 13%, driven by higher capital markets and advisory fees, including record merger and acquisition advisory activity.
–Noninterest expense increased 5%, reflecting higher variable compensation associated with increased business activity.
▪Average loans increased 6%, driven by strong new production and increased utilization of loan commitments.
▪Average deposits decreased 2%, reflecting seasonal declines in corporate deposits.
Second quarter 2026 compared with second quarter 2025
- more -


PNC Reports Second Quarter 2026 Net Income of $2.1 Billion, $4.81 Diluted EPS or $4.85 As Adjusted – Page 12
▪Earnings increased 20%, driven by higher noninterest income and net interest income as well as a lower provision for credit losses, partially offset by higher noninterest expense.
–Noninterest income increased 26%, primarily due to broad-based increases across the capital markets and advisory businesses and growth in treasury management product revenue.
–Noninterest expense increased 19%, reflecting higher variable compensation associated with increased business activity.
▪Average loans increased 13%, driven by strong new production within the commercial and industrial portfolio.
▪Average deposits increased 8%, due to growth in both interest-bearing and noninterest-bearing deposits.
Asset Management Group Change Change
2Q26 vs 2Q26 vs
In millions 2Q26 1Q26 2Q25 1Q26 2Q25
Net interest income $ 191  $ 193  $ 184  $ (2) $ 7 
Noninterest income $ 271  $ 262  $ 244  $ 9  $ 27 
Noninterest expense $ 289  $ 292  $ 268  $ (3) $ 21 
Provision for (recapture of) credit losses $ (3) $ 5  $ (13) $ (8) $ 10 
Earnings $ 135  $ 121  $ 132  $ 14  $ 3 
In billions
Discretionary client AUM $ 247  $ 230  $ 217  $ 17  $ 30 
Nondiscretionary client AUM $ 256  $ 233  $ 204  $ 23  $ 52 
Client AUM at quarter end $ 503  $ 463  $ 421  $ 40  $ 82 
In billions
Average loans $ 14.6  $ 14.4  $ 14.2  $ 0.2  $ 0.4 
Average deposits $ 27.0  $ 27.7  $ 26.9  $ (0.7) $ 0.1 
Net loan charge-offs (recoveries) In millions
$ 1  —  $ (1) $ 1  $ 2 
AUM - Assets under management
During the second quarter of 2026, PNC updated its internal funds transfer pricing methodology. The update resulted in impacts to net interest income and associated income statement line items for all business segments. Prior periods have been adjusted to conform with the current presentation.
Asset Management Group Highlights
Second quarter 2026 compared with first quarter 2026
▪Earnings increased 12%, due to higher noninterest income, a provision recapture and lower noninterest expense, partially offset by a modest decline in net interest income.
–Noninterest income increased 3%, reflecting higher average equity markets.
–Noninterest expense decreased 1%.
▪Discretionary client AUM increased 7%, driven by higher spot equity markets and positive net flows.
▪Nondiscretionary client AUM increased 10%, driven by higher spot equity markets.
▪Average loans increased 1%, primarily due to growth in securities-based lending.
▪Average deposits decreased 3%, driven by the timing of annual client income tax payments.
Second quarter 2026 compared with second quarter 2025
▪Earnings increased 2%, due to higher noninterest income and net interest income, partially offset by higher noninterest expense and a lower provision recapture.
–Noninterest income increased 11%, reflecting higher average equity markets and positive net flows.
- more -


PNC Reports Second Quarter 2026 Net Income of $2.1 Billion, $4.81 Diluted EPS or $4.85 As Adjusted – Page 13
–Noninterest expense increased 8%, and included continued investments to support business growth as well as higher variable compensation associated with increased business activity.
▪Discretionary client AUM increased 14% and nondiscretionary client AUM increased 25%. In both instances, the increase was driven by higher spot equity markets and positive net flows.
▪Average loans increased 3%, primarily due to growth in securities-based lending and higher commercial loan balances.
▪Average deposits were stable.
Other
The “Other” category, for the purposes of this release, includes remaining corporate operations that do not meet the criteria for disclosure as a separate reportable business, such as asset and liability management activities, including net securities gains or losses, ACL for investment securities, certain trading activities, certain runoff consumer loan portfolios, private equity investments, intercompany eliminations, corporate overhead net of allocations, tax adjustments that are not allocated to business segments, exited businesses and the residual impact from funds transfer pricing operations.
CONFERENCE CALL AND SUPPLEMENTAL FINANCIAL INFORMATION
PNC Chairman and Chief Executive Officer William S. Demchak and Executive Vice President and Chief Financial Officer Robert Q. Reilly will hold a conference call for investors today at 10:00 a.m. Eastern Time regarding the topics addressed in this news release and the related earnings materials. Dial-in numbers for the conference call are (866) 604-1697 and (215) 268-9875 (international) and Internet access to the live audio listen-only webcast of the call is available at www.pnc.com/investorevents. PNC’s second quarter 2026 earnings materials to accompany the conference call remarks will be available at www.pnc.com/investorevents prior to the beginning of the call. A telephone replay of the call will be available for four weeks at (877) 660-6853 and (201) 612-7415 (international), Access ID 13760708 and a replay of the audio webcast will be available on PNC’s website for 30 days.
The PNC Financial Services Group, Inc. is one of the largest diversified financial services institutions in the United States, organized around its customers and communities for strong relationships and local delivery of retail and business banking including a full range of lending products; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management. For information about PNC, visit www.pnc.com.
CONTACTS
MEDIA: INVESTORS:
Anne Pace Bryan Gill
(631) 338-3268 (412) 768-4143
anne.pace@pnc.com investor.relations@pnc.com




[TABULAR MATERIAL FOLLOWS]
- more -


PNC Reports Second Quarter 2026 Net Income of $2.1 Billion, $4.81 Diluted EPS or $4.85 As Adjusted – Page 14
2
The PNC Financial Services Group, Inc.
Consolidated Financial Highlights (Unaudited)
FINANCIAL RESULTS Three months ended Six months ended
Dollars in millions, except per share data June 30 March 31 June 30 June 30 June 30
2026 2026 2025 2026 2025
Revenue
Net interest income $ 4,107  $ 3,961  $ 3,555  $ 8,068  $ 7,031 
Noninterest income 2,768  2,204  2,106  4,972  4,082 
Total revenue 6,875  6,165  5,661  13,040  11,113 
Provision for credit losses 191  210  254  401  473 
Noninterest expense 4,098  3,768  3,383  7,866  6,770 
Income before income taxes and noncontrolling interests $ 2,586  $ 2,187  $ 2,024  $ 4,773  $ 3,870 
Income taxes 531  415  381  946  728 
Net income $ 2,055 

$ 1,772 

$ 1,643  $ 3,827 

$ 3,142 
Less:
Net income attributable to noncontrolling interests 15  12  16  27  34 
Preferred stock dividends (a) 85  73  83  158  154 
Preferred stock discount accretion and redemptions 2  1  2  3  4 
Net income attributable to common shareholders $ 1,953  $ 1,686  $ 1,542  $ 3,639  $ 2,950 
Less: Dividends and undistributed earnings allocated to nonvested restricted shares 12  11  10  23  19 
Net income attributable to diluted common shareholders $ 1,941  $ 1,675  $ 1,532  $ 3,616  $ 2,931 
Per Common Share
Basic $ 4.82  $ 4.13  $ 3.86  $ 8.95  $ 7.37 
Diluted $ 4.81  $ 4.13  $ 3.85  $ 8.94  $ 7.37 
Cash dividends declared per common share $ 1.70 

$ 1.70 

$ 1.60  $ 3.40 

$ 3.20 
Effective tax rate (b) 20.5  % 19.0  % 18.8  % 19.8  % 18.8  %
PERFORMANCE RATIOS
Net interest margin (c) 2.96  % 2.95  % 2.80  % 2.96  % 2.79  %
Noninterest income to total revenue 40  % 36  % 37  % 38  % 37  %
Efficiency (d) 60  % 61  % 60  % 60  % 61  %
Return on:
Average common shareholders' equity 13.61  % 11.92  % 12.20  % 12.77  % 11.91  %
Average assets 1.34  % 1.19  % 1.17  % 1.27  % 1.13  %
(a)Dividends are payable quarterly, other than Series S preferred stock, which is payable semiannually.
(b)The effective income tax rates are generally lower than the statutory rate due to the relationship of pretax income to tax credits and earnings that are not subject to tax.
(c)Net interest margin is the total yield on interest-earning assets minus the total rate on interest-bearing liabilities and includes the benefit from use of noninterest-bearing sources. To provide more meaningful comparisons of net interest margins, we use net interest income on a taxable-equivalent basis in calculating average yields used in the calculation of net interest margin by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under generally accepted accounting principles (GAAP) in the Consolidated Income Statement. The taxable-equivalent adjustments to net interest income for the three months ended June 30, 2026, March 31, 2026 and June 30, 2025 were $27 million, $29 million and $28 million, respectively. The taxable-equivalent adjustments to net interest income for both the six months ended June 30, 2026 and 2025 were $56 million.
(d)Calculated as noninterest expense divided by total revenue.

- more -


PNC Reports Second Quarter 2026 Net Income of $2.1 Billion, $4.81 Diluted EPS or $4.85 As Adjusted – Page 15
The PNC Financial Services Group, Inc.
Consolidated Financial Highlights (Unaudited)
June 30 March 31 June 30
2026 2026 2025
BALANCE SHEET DATA
Dollars in millions, except per share data and as noted
Assets $ 616,034  $ 603,028  $ 559,107 
Loans (a) $ 367,953  $ 360,923  $ 326,340 
Allowance for loan and lease losses $ 4,652  $ 4,663  $ 4,523 
Interest-earning deposits with banks $ 22,794  $ 26,053  $ 24,455 
Investment securities $ 149,506  $ 143,112  $ 142,348 
Total deposits (a) $ 449,792  $ 457,648  $ 426,696 
Borrowed funds (a) $ 85,723  $ 66,666  $ 60,424 
Allowance for unfunded lending related commitments $ 809  $ 832  $ 759 
Total shareholders' equity $ 64,008  $ 63,627  $ 57,607 
Common shareholders' equity $ 58,131  $ 57,752  $ 51,854 
Accumulated other comprehensive income (loss) $ (4,120) $ (3,773) $ (4,682)
Book value per common share $ 145.52  $ 143.65  $ 131.61 
Tangible book value per common share (non-GAAP) (b)
$ 111.09  $ 109.42  $ 103.96 
Period end common shares outstanding (In millions)
399  402  394 
Loans to deposits 82  % 79  % 76  %
Common shareholders' equity to total assets 9.4  % 9.6  % 9.3  %
CLIENT ASSETS (In billions)
Discretionary client assets under management $ 247  $ 230  $ 217 
Nondiscretionary client assets under administration 256  233  204 
Total client assets under administration 503  463  421 
Brokerage account client assets 99  93  89 
Total client assets $ 602  $ 556  $ 510 
CAPITAL RATIOS
Basel III (c)
Common equity tier 1 9.9  % 10.1  % 10.5  %
Tier 1 risk-based 11.1  % 11.3  % 11.8  %
Total capital risk-based 12.9  % 13.1  % 13.6  %
Leverage 9.0  % 9.1  % 9.3  %
  Supplementary leverage 7.2  % 7.4  % 7.6  %
ASSET QUALITY
Nonperforming loans to total loans 0.55  % 0.62  % 0.65  %
Nonperforming assets to total loans, OREO, foreclosed and other assets (d) 0.58  % 0.66  % 0.66  %
Nonperforming assets to total assets 0.35  % 0.40  % 0.38  %
Net charge-offs to average loans (for the three months ended) (annualized) 0.25  % 0.29  % 0.25  %
Allowance for loan and lease losses to total loans 1.26  % 1.29  % 1.39  %
Allowance for credit losses to total loans (e) 1.48  % 1.52  % 1.62  %
Allowance for loan and lease losses to nonperforming loans 230  % 208  % 215  %
Total delinquencies (In millions) (f)
$ 1,436  $ 1,558  $ 1,303 
(a)Amounts include assets and liabilities for which we have elected the fair value option. Our first quarter 2026 Form 10-Q included, and our second quarter 2026 Form 10-Q will include, additional information regarding these Consolidated Balance Sheet line items.
(b)See the Tangible Book Value per Common Share table on page 19 for additional information.
(c)All ratios are calculated using the regulatory capital methodology applicable to PNC during each period presented and calculated based on the standardized approach. See Capital Ratios on page 16 for additional information. The ratios as of June 30, 2026 are estimated.
(d)Amounts include nonaccrual servicing advances primarily to single asset/single borrower trusts with commercial real estate as collateral totaling $90 million and $103 million at June 30, 2026 and March 31, 2026, respectively.
(e)Excludes allowances for investment securities and other financial assets.
(f)Total delinquencies represent accruing loans 30 days or more past due.
- more -


PNC Reports Second Quarter 2026 Net Income of $2.1 Billion, $4.81 Diluted EPS or $4.85 As Adjusted – Page 16
The PNC Financial Services Group, Inc. Consolidated Financial Highlights (Unaudited)

CAPITAL RATIOS

PNC's regulatory risk-based capital ratios in 2026 are calculated using the standardized approach for determining risk-weighted assets. Under the standardized approach for determining credit risk-weighted assets, exposures are generally assigned a pre-defined risk weight. Exposures to high volatility commercial real estate, past due exposures and equity exposures are generally subject to higher risk weights than other types of exposures.

Our Basel III capital ratios may be impacted by changes to the regulatory capital rules and additional regulatory guidance or analysis. The following table summarizes our March 31, 2026, June 30, 2025 and estimated June 30, 2026 capital balances and ratios.
Basel lll Common Equity Tier 1 Capital Ratios
Basel III
June 30
2026
(estimated)		 March 31
2026		 June 30
 2025
Dollars in millions
Common stock, related surplus and retained earnings, net of treasury stock $ 62,249  $ 61,523  $ 56,536 
Less regulatory capital adjustments:
Goodwill and disallowed intangibles, net of deferred tax liabilities (13,752) (13,757) (10,896)
All other adjustments (84) (80) (81)
Basel III Common equity tier 1 capital $ 48,413  $ 47,686  $ 45,559 
Basel III standardized approach risk-weighted assets (a) $ 487,609  $ 472,981  $ 433,190 
Basel III Common equity tier 1 capital ratio 9.9  % 10.1  % 10.5  %
(a)Basel III standardized approach risk-weighted assets are based on the Basel III standardized approach rules and include credit and market risk-weighted assets.































- more -


PNC Reports Second Quarter 2026 Net Income of $2.1 Billion, $4.81 Diluted EPS or $4.85 As Adjusted – Page 17
The PNC Financial Services Group, Inc. Consolidated Financial Highlights (Unaudited)

NON-GAAP MEASURES

Fee Income (non-GAAP) Three months ended
June 30 March 31 June 30
Dollars in millions 2026 2026 2025
Noninterest income

Asset management and brokerage $ 440  $ 420  $ 391 
Capital markets and advisory 577  463  321 
Card and cash management 772  738  737 
Lending and deposit services 346  340  317 
Residential and commercial mortgage 144  118  128 
Fee income (non-GAAP)
$ 2,279  $ 2,079  $ 1,894 
Other income 489  125  212 
Total noninterest income $ 2,768  $ 2,204  $ 2,106 

Fee income is a non-GAAP measure and is comprised of noninterest income in the following categories: asset management and brokerage, capital markets and advisory, card and cash management, lending and deposit services, and residential and commercial mortgage. We believe this non-GAAP measure serves as a useful tool for comparison of noninterest income related to fees.


Pretax Pre-Provision Earnings (non-GAAP) Three months ended
June 30 March 31 June 30
Dollars in millions 2026 2026 2025
Income before income taxes and noncontrolling interests $ 2,586  $ 2,187  $ 2,024 
Provision for credit losses 191  210  254 
Pretax pre-provision earnings (non-GAAP)
$ 2,777  $ 2,397  $ 2,278 

Pretax pre-provision earnings is a non-GAAP measure and is based on adjusting income before income taxes and noncontrolling interests to exclude provision for credit losses. We believe that pretax, pre-provision earnings is a useful tool to help evaluate the ability to provide for credit costs through operations and provides an additional basis to compare results between periods by isolating the impact of provision for credit losses, which can vary significantly between periods.


























- more -


PNC Reports Second Quarter 2026 Net Income of $2.1 Billion, $4.81 Diluted EPS or $4.85 As Adjusted – Page 18
The PNC Financial Services Group, Inc. Consolidated Financial Highlights (Unaudited)

Noninterest Expense Excluding Integration Costs and 2Q26 Significant Items (non-GAAP)
Noninterest Income Excluding Integration Costs and 2Q26 Significant Items (non-GAAP)
Three months ended Three months ended
June 30 March 31 Change June 30 June 30 Change
Dollars in millions 2026 2026 $ % 2026 2025 $ %
Noninterest expense $ 4,098  $ 3,768  $ 330  9  % $ 4,098  $ 3,383  $ 715  21  %
Contribution to PNC Foundation (140) —  (140) — 
Integration costs (121) (97) (121) — 
Noninterest expense excluding integration costs and 2Q26 significant items (non-GAAP)
$ 3,837  $ 3,671  $ 166  5  % $ 3,837  $ 3,383  $ 454  13  %
Noninterest income $ 2,768  $ 2,204  $ 564  26  % $ 2,768  $ 2,106  $ 662  31  %
Gain on exchange of Visa Class B-2 shares 448  —  448  — 
Visa Class B-3 derivative fair value adjustments (85) —  (85) — 
Loss on sale of securities (139) —  (139) — 
Integration costs (6) (1) (6) — 
Noninterest income excluding integration costs and 2Q26 significant items (non-GAAP)
$ 2,550  $ 2,205  $ 345  16  % $ 2,550  $ 2,106  $ 444  21  %
Pretax, pre-provision impact of integration costs and 2Q26 significant items $ (43) $ (98) $ (43) $ — 
Income taxes (benefit) (a) (28) (21) (28) — 
After tax impact of integration costs and 2Q26 significant items $ (15) $ (77) $ (15) $ — 
(a)Income taxes on integration costs and 2Q26 significant items are calculated at a statutory tax rate of 21% on pretax, pre-provision earnings. Significant items tax impact also includes the benefit of shares donated to the PNC Foundation.

Noninterest expense excluding integration costs and 2Q26 significant items is a non-GAAP measure and is based on adjusting noninterest expense to exclude integration costs related to the FirstBank acquisition and 2Q26 significant items during the period. The 2Q26 significant items are described in the Integration Costs and 2Q26 Significant Items section on page 2. We believe this non-GAAP measure to be a useful tool for comparison of operating expenses incurred during the normal course of business. The exclusion of integration costs and 2Q26 significant items increases comparability across periods, demonstrates the impact of significant items and provides a useful measure for determining PNC’s expenses that are core to our business operations and expected to recur over time.

Noninterest income excluding integration costs and 2Q26 significant items is a non-GAAP measure and is based on adjusting noninterest income to exclude integration costs related to the FirstBank acquisition and 2Q26 significant items during the period. The 2Q26 significant items are described in the Integration Costs and 2Q26 Significant Items section on page 2. We believe this non-GAAP measure to be a useful tool for comparison of noninterest income earned during the normal course of business. The exclusion of integration costs and 2Q26 significant items increases comparability across periods, demonstrates the impact of significant items and provides a useful measure for determining PNC’s noninterest income generating activities that are core to our business operations and expected to recur over time.
















- more -


PNC Reports Second Quarter 2026 Net Income of $2.1 Billion, $4.81 Diluted EPS or $4.85 As Adjusted – Page 19


The PNC Financial Services Group, Inc. Consolidated Financial Highlights (Unaudited)

Adjusted Diluted Earnings per Common Share Excluding Integration Costs and 2Q26 Significant Items (non-GAAP)
Three months ended
June 30 Per Common March 31 Per Common
Dollars in millions, except per share data 2026 Share 2026 Share
Net income attributable to diluted common shareholders $ 1,941  $ 4.81  $ 1,675  $ 4.13 
After tax impact of integration costs and 2Q26 significant items 15  0.04  77  0.19 
Adjusted net income attributable to diluted common shareholders excluding integration costs and 2Q26 significant items (non-GAAP)
$ 1,956  $ 4.85  $ 1,752  $ 4.32 
Average diluted common shares outstanding (In millions)
403 405

The adjusted diluted earnings per common share excluding integration costs and 2Q26 significant items is a non-GAAP measure and excludes integration costs related to the FirstBank acquisition and 2Q26 significant items during the period. It is calculated based on adjusting net income attributable to diluted common shareholders by removing post-tax effects of integration costs and 2Q26 significant items in the period. The 2Q26 significant items are described in the Integration Costs and 2Q26 Significant Items section on page 2. We believe this non-GAAP measure serves as a useful tool in understanding PNC's results by providing greater comparability between periods, as well as demonstrating the effect of significant items.


Tangible Book Value per Common Share (non-GAAP)
June 30 March 31 June 30
Dollars in millions, except per share data 2026 2026 2025
Book value per common share $ 145.52 

$ 143.65  $ 131.61 
Tangible book value per common share
Common shareholders' equity $ 58,131  $ 57,752  $ 51,854 
Goodwill and other intangible assets (14,161) $ (14,174) (11,137)
Deferred tax liabilities on goodwill and other intangible assets 408  416  242 
Tangible common shareholders' equity $ 44,378  $ 43,994  $ 40,959 
Period-end common shares outstanding (In millions)
399  402  394 
Tangible book value per common share (non-GAAP)
$ 111.09 

$ 109.42  $ 103.96 

Tangible book value per common share is a non-GAAP measure and is calculated based on tangible common shareholders' equity divided by period-end common shares outstanding. We believe this non-GAAP measure serves as a useful tool to help evaluate the strength and discipline of a company’s capital management strategies and as an additional, conservative measure of total company value.


Return on Average Tangible Common Equity (non-GAAP) Three months ended
June 30 March 31 June 30
Dollars in millions 2026 2026 2025
Return on average common shareholders' equity 13.61  %

11.92  % 12.20  %
Return on average tangible common equity
Average common shareholders' equity $ 57,556  $ 57,382  $ 50,676 
Average goodwill and other intangible assets (14,162) (14,056) (11,145)
Average deferred tax liabilities on goodwill and other intangible assets 412  327  241 
Average tangible common shareholders' equity $ 43,806  $ 43,653  $ 39,772 
Net income attributable to common shareholders $ 1,953  $ 1,686  1,542 
Net income attributable to common shareholders, annualized $ 7,833  $ 6,838  $ 6,185 
Return on average tangible common equity (non-GAAP)
17.88  %

15.66  % 15.55  %

Return on average tangible common equity is a non-GAAP measure and is calculated based on annualized net income attributable to common shareholders divided by tangible common equity. We believe this non-GAAP measure serves as a useful tool to help measure and assess a company's use of common equity.


- more -


PNC Reports Second Quarter 2026 Net Income of $2.1 Billion, $4.81 Diluted EPS or $4.85 As Adjusted – Page 20


The PNC Financial Services Group, Inc. Consolidated Financial Highlights (Unaudited)

Taxable-Equivalent Net Interest Income (non-GAAP) Three months ended
June 30 March 31 June 30
Dollars in millions 2026 2026 2025
Net interest income $ 4,107  $ 3,961  $ 3,555 
Taxable-equivalent adjustments 27  29  28 
Net interest income (Fully Taxable-Equivalent - FTE) (non-GAAP)
$ 4,134  $ 3,990  $ 3,583 

The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of net interest income, we use interest income on a taxable-equivalent basis by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under GAAP. Taxable-equivalent net interest income is only used for calculating net interest margin. Net interest income shown elsewhere in this presentation is GAAP net interest income.









- more -


PNC Reports Second Quarter 2026 Net Income of $2.1 Billion, $4.81 Diluted EPS or $4.85 As Adjusted – Page 21
Cautionary Statement Regarding Forward-Looking Information

We make statements in this news release and related conference call, and we may from time to time make other statements, regarding our outlook for financial performance, such as earnings, revenues, expenses, tax rates, capital and liquidity levels and ratios, asset levels, asset quality, financial position, and other matters regarding or affecting us and our future business and operations, including our sustainability strategy, that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements are typically identified by words such as “believe,” “plan,” “expect,” “anticipate,” “see,” “look,” “intend,” “outlook,” “project,” “forecast,” “estimate,” “goal,” “will,” “should” and other similar words and expressions.

Forward-looking statements are necessarily subject to numerous assumptions, risks and uncertainties, which change over time. Future events or circumstances may change our outlook and may also affect the nature of the assumptions, risks and uncertainties to which our forward-looking statements are subject. Forward-looking statements speak only as of the date made. We do not assume any duty and do not undertake any obligation to update forward-looking statements. Actual results or future events could differ, possibly materially, from those anticipated in forward-looking statements, as well as from historical performance. As a result, we caution against placing undue reliance on any forward-looking statements.

Our forward-looking statements are subject to the following principal risks and uncertainties.
▪Our businesses, financial results and balance sheet values are affected by business and economic conditions, including:
–Changes in interest rates and valuations in debt, equity and other financial markets,
–Disruptions in the U.S. and global financial markets,
–Actions by the Federal Reserve Board, U.S. Treasury and other government agencies, including those that impact money supply, market interest rates and inflation,
–Changes in customer behavior due to changing business and economic conditions or legislative or regulatory initiatives,
–Changes in customers’, suppliers’ and other counterparties’ performance and creditworthiness,
–Impacts of sanctions, tariffs and other trade policies of the U.S. and its global trading partners,
–Impacts of changes in federal, state and local governmental policy, including on the regulatory landscape, capital markets, taxes, infrastructure spending and social programs,
–Our ability to attract, recruit and retain skilled employees, and
–Commodity price volatility.
▪Our forward-looking financial statements are subject to the risk that economic and financial market conditions will be substantially different than those we are currently expecting. These statements are based on our views that:
–PNC’s baseline forecast remains for continued expansion in 2026, with economic growth expected to remain resilient despite oil prices that are up from early 2026, supported by strong AI-related capex, tax refunds, and an improving labor market. We expect real GDP growth of 2.1% in 2026, with continued modest job gains and the unemployment rate holding roughly steady, ending the year at around 4.3%. Inflation risks have eased somewhat but we still expect inflation to remain elevated, with CPI inflation staying above 3% through year-end. Risks to our growth and inflation outlook include a sudden reversal in AI-related sentiment, which would have knock-on effects on both capex and wealth-driven consumer spending, as well as any further sharp rise in oil prices.
–Our baseline forecast is for the Federal Reserve to keep the federal funds rate unchanged throughout 2026 and into 2027, in a range between 3.50% and 3.75%. However, risks remain skewed toward tighter monetary policy given persistent above-target inflation and inflationary pressures from higher energy prices and continued strength in capital spending.

▪PNC’s ability to take certain capital actions, including returning capital to shareholders, is subject to PNC meeting or exceeding minimum capital levels, including a stress capital buffer established by the Federal Reserve Board in connection with the Federal Reserve Board’s Comprehensive Capital Analysis and Review (CCAR) process.









- more -


PNC Reports Second Quarter 2026 Net Income of $2.1 Billion, $4.81 Diluted EPS or $4.85 As Adjusted – Page 22
Cautionary Statement Regarding Forward-Looking Information (Continued)

▪PNC's regulatory capital ratios in the future will depend on, among other things, PNC’s financial performance,
the scope and terms of final capital regulations then in effect and management actions affecting the
composition of PNC’s balance sheet. In addition, PNC’s ability to determine, evaluate and forecast regulatory
capital ratios, and to take actions (such as capital distributions) based on actual or forecasted capital ratios,
will be dependent at least in part on the development, validation and regulatory review of related models and
the reliability of and risks resulting from extensive use of such models.

▪Legal and regulatory developments could have an impact on our ability to operate our businesses, financial condition, results of operations, competitive position, reputation, or pursuit of attractive acquisition opportunities. Reputational impacts could affect matters such as business generation and retention, liquidity, funding, and ability to attract and retain employees. These developments could include:
–Changes to laws and regulations, including changes affecting oversight of the financial services industry, changes in the enforcement and interpretation of such laws and regulations, and changes in accounting and reporting standards.
–Unfavorable resolution of legal proceedings or other claims and regulatory and other governmental investigations or other inquiries resulting in monetary losses, costs, or alterations in our business practices, and potentially causing reputational harm to PNC.
–Results of the regulatory examination and supervision process, including our failure to satisfy requirements of agreements with governmental agencies.
–Costs associated with obtaining rights in intellectual property claimed by others and of adequacy of our intellectual property protection in general.

▪Business and operating results are affected by our ability to identify and effectively manage risks inherent in our businesses, including, where appropriate, through effective use of systems and controls, third-party insurance, derivatives, and capital management techniques, and to meet evolving regulatory capital and liquidity standards.

▪Our reputation and business and operating results may be affected by our ability to appropriately meet or address environmental, social or governance targets, goals, commitments or concerns that may arise.

▪We grow our business in part through acquisitions and new strategic initiatives. Risks and uncertainties include those presented by the nature of the business acquired and strategic initiative, including in some cases those associated with our entry into new businesses or new geographic or other markets and risks resulting from our inexperience in those new areas, as well as risks and uncertainties related to the acquisition transactions themselves, regulatory issues, the integration of the acquired businesses into PNC after closing or any failure to execute strategic or operational plans.

▪Competition can have an impact on customer acquisition, growth and retention and on credit spreads and product pricing, which can affect market share, deposits and revenues. Our ability to anticipate and respond to technological changes can also impact our ability to respond to customer needs and meet competitive demands.

▪Business and operating results can also be affected by widespread manmade, natural and other disasters (including severe weather events), health emergencies, dislocations, geopolitical instabilities or events, terrorist activities, system failures or disruptions, security breaches, cyberattacks, international hostilities, or other extraordinary events beyond PNC’s control through impacts on the economy and financial markets generally or on us or our counterparties, customers or third-party vendors and service providers specifically.

We provide greater detail regarding these as well as other factors in our most recent Form 10-K and in any subsequent Form 10-Qs, including in the Risk Factors and Risk Management sections and the Legal Proceedings and Commitments Notes of the Notes To Consolidated Financial Statements in those reports, and in our other subsequent SEC filings. Our forward-looking statements may also be subject to other risks and uncertainties, including those we may discuss elsewhere in this news release or in our SEC filings, accessible on the SEC’s website at www.sec.gov and on our corporate website at www.pnc.com/secfilings. We have included these web addresses as inactive textual references only. Information on these websites is not part of this document.
###
EX-99.2 3 q22026financialsupplement.htm EX-99.2 Document

Exhibit 99.2






logo3a.jpg


THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT
SECOND QUARTER 2026
(Unaudited)



THE PNC FINANCIAL SERVICES GROUP, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2026
(UNAUDITED)

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on July 15, 2026. This information speaks only as of the particular date or dates included in the schedules. We do not undertake any obligation to, and disclaim any duty to, correct or update any of the information provided in this Financial Supplement. Our future financial performance is subject to risks and uncertainties as described in our United States Securities and Exchange Commission (SEC) filings.

BUSINESS
PNC is one of the largest diversified financial services companies in the United States (U.S.) and is headquartered in Pittsburgh, Pennsylvania. PNC has businesses engaged in retail banking, corporate and institutional banking and asset management, providing many of its products and services nationally. PNC's retail branch network is located coast-to-coast. PNC also has strategic international offices in four countries outside the U.S.

ACQUISITION OF FIRSTBANK HOLDING COMPANY
On January 5, 2026, PNC completed its acquisition of FirstBank Holding Company, including its banking subsidiary FirstBank. At close, FirstBank had $26 billion of assets, $16 billion of loans and $23 billion of deposits. Effective January 5, 2026, FirstBank’s financial results are included in PNC’s consolidated operations.

As of June 22, 2026, PNC converted approximately 780,000 customers, more than 1,600 employees and 95 branches across Colorado and Arizona, merging FirstBank into PNC Bank. Our first quarter 2026 Form 10-Q included additional information on this acquisition.


THE PNC FINANCIAL SERVICES GROUP, INC.
Cross Reference Index to Second Quarter 2026 Financial Supplement (Unaudited)
Financial Supplement Table Reference
Table Description Page
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
13-14
17
15-16
18


THE PNC FINANCIAL SERVICES GROUP, INC.
Page 1

Table 1: Consolidated Income Statement (Unaudited)
Three months ended Six months ended
June 30 March 31 December 31 September 30 June 30 June 30 June 30
In millions, except per share data 2026 2026 2025 2025 2025 2026 2025
Interest Income
Loans $ 4,986  $ 4,792  $ 4,640  $ 4,751  $ 4,609  $ 9,778  $ 9,081 
Investment securities 1,263  1,202  1,188  1,211  1,151  2,465  2,275 
Other 445  450  552  565  510  895  1,044 
Total interest income 6,694  6,444  6,380  6,527  6,270  13,138  12,400 
Interest Expense
Deposits 1,682  1,735  1,864  1,980  1,845  3,417  3,653 
Borrowed funds 905  748  785  899  870  1,653  1,716 
Total interest expense 2,587  2,483  2,649  2,879  2,715  5,070  5,369 
Net interest income 4,107  3,961  3,731  3,648  3,555  8,068  7,031 
Noninterest Income
Asset management and brokerage 440  420  411  404  391  860  782 
Capital markets and advisory 577  463  489  432  321  1,040  627 
Card and cash management 772  738  733  737  737  1,510  1,429 
Lending and deposit services 346  340  342  335  317  686  633 
Residential and commercial mortgage 144  118  148  161  128  262  262 
Other income
    Gain on Visa shares exchange program 448  —  —  —  —  448  — 
    Securities gains (losses) (139) 28  (7) —  —  (111) (2)
    Other (a) 180  97  224  198  212  277  351 
Total other income 489  125  217  198  212  614  349 
Total noninterest income 2,768  2,204  2,340  2,267  2,106  4,972  4,082 
Total revenue 6,875  6,165  6,071  5,915  5,661  13,040  11,113 
Provision For Credit Losses 191  210  139  167  254  401  473 
Noninterest Expense
Personnel 2,273  2,106  2,033  1,970  1,889  4,379  3,779 
Occupancy 252  262  247  235  235  514  480 
Equipment 435  415  412  416  394  850  778 
Marketing 110  87  101  93  99  197  184 
Other 1,028  898  810  747  766  1,926  1,549 
Total noninterest expense 4,098  3,768  3,603  3,461  3,383  7,866  6,770 
Income before income taxes and noncontrolling interests 2,586  2,187  2,329  2,287  2,024  4,773  3,870 
Income taxes 531  415  296  465  381  946  728 
Net income 2,055  1,772  2,033  1,822  1,643  3,827  3,142 
Less: Net income attributable to noncontrolling interests 15  12  13  14  16  27  34 
Preferred stock dividends (b) 85  73  83  71  83  158  154 
Preferred stock discount accretion and redemptions 2  1  3  2  2  3  4 
Net income attributable to common shareholders $ 1,953  $ 1,686  $ 1,934  $ 1,735  $ 1,542  $ 3,639  $ 2,950 
Earnings Per Common Share
Basic $ 4.82  $ 4.13  $ 4.88  $ 4.36  $ 3.86  $ 8.95  $ 7.37 
Diluted $ 4.81  $ 4.13  $ 4.88  $ 4.35  $ 3.85  $ 8.94  $ 7.37 
Average Common Shares Outstanding
Basic 403  405  394  396  397  404  398 
Diluted 403  405  394  396  397  404  398 
Efficiency 60  % 61  % 59  % 59  % 60  % 60  % 61  %
Noninterest income to total revenue 40  % 36  % 39  % 38  % 37  % 38  % 37  %
Effective tax rate (c) 20.5  % 19.0  % 12.7  % 20.3  % 18.8  % 19.8  % 18.8  %
(a)Includes Visa derivative fair value adjustments of $(85) million, $(32) million, $(41) million, $(35) million and $2 million for the quarters ended June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025 and June 30, 2025 and $(117) million and $(38) million for the six months ended June 30, 2026 and June 30, 2025, respectively. These adjustments are primarily related to escrow funding and the extension of anticipated litigation resolution timing.
(b)Dividends are payable quarterly, other than Series S preferred stock, which is payable semiannually.
(c)The effective income tax rates are generally lower than the statutory rate due to the relationship of pretax income to tax credits and earnings that are not subject to tax.








THE PNC FINANCIAL SERVICES GROUP, INC.
Page 2
Table 2: Consolidated Balance Sheet (Unaudited)
June 30 March 31 December 31 September 30 June 30
In millions, except par value 2026 2026 2025 2025 2025
Assets
Cash and due from banks $ 5,951  $ 5,646  $ 6,777  $ 5,553  $ 5,939 
Interest-earning deposits with banks (a) 22,794  26,053  32,936  33,318  24,455 
Loans held for sale (b) 1,522  1,332  1,939  1,104  1,837 
Investment securities – available-for-sale 71,100  71,072  68,135  68,297  67,136 
Investment securities – held-to-maturity 78,406  72,040  70,105  73,226  75,212 
Loans (b) 367,953  360,923  331,481  326,616  326,340 
Allowance for loan and lease losses (4,652) (4,663) (4,410) (4,478) (4,523)
Net loans 363,301  356,260  327,071  322,138  321,817 
Equity investments 11,735  10,512  10,790  9,972  9,755 
Mortgage servicing rights 3,801  3,816  3,659  3,627  3,467 
Goodwill 13,317  13,282  10,959  10,962  10,932 
Other (b) 44,107  43,015  41,201  40,570  38,557 
Total assets $ 616,034  $ 603,028  $ 573,572  $ 568,767  $ 559,107 
Liabilities
Deposits
Noninterest-bearing $ 99,356  $ 99,297  $ 91,748  $ 91,207  $ 93,253 
Interest-bearing (b) 350,436  358,351  349,118  341,542  333,443 
Total deposits 449,792  457,648  440,866  432,749  426,696 
Borrowed funds
Federal Home Loan Bank advances 40,416  21,417  13,000  16,100  18,000 
Senior debt 38,144  38,021  38,642  38,695  35,750 
Subordinated debt 4,396  4,502  3,016  3,512  3,490 
Other (b) 2,767  2,726  2,443  4,037  3,184 
Total borrowed funds 85,723  66,666  57,101  62,344  60,424 
Allowance for unfunded lending related commitments 809  832  818  775  759 
Accrued expenses and other liabilities (b) 15,649  14,206  14,151  13,861  13,573 
Total liabilities 551,973  539,352  512,936  509,729  501,452 
Equity
Preferred stock (c) — — — — —
Common stock - $5 par value
Authorized 800,000,000 shares, issued 557,291,838; 557,213,012; 543,497,966; 543,412,079 and 543,412,101 shares 2,786  2,786  2,717  2,717  2,717 
Capital surplus 21,999  21,926  18,922  18,859  18,809 
Retained earnings 65,518  64,256  63,266  62,008  60,951 
Accumulated other comprehensive income (loss) (4,120) (3,773) (3,408) (4,077) (4,682)
Common stock held in treasury at cost: 157,826,113; 155,167,491; 153,084,091; 151,030,533 and 149,426,326 shares (22,175) (21,568) (20,912) (20,517) (20,188)
Total shareholders’ equity 64,008  63,627  60,585  58,990  57,607 
Noncontrolling interests 53  49  51  48  48 
Total equity 64,061  63,676  60,636  59,038  57,655 
Total liabilities and equity $ 616,034  $ 603,028  $ 573,572  $ 568,767  $ 559,107 
(a)Amounts include balances held with the Federal Reserve Bank of $22.2 billion, $25.3 billion, $32.0 billion, $32.7 billion and $23.9 billion as of June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025 and June 30, 2025, respectively.
(b)Amounts include assets and liabilities for which PNC has elected the fair value option. Our first quarter 2026 Form 10-Q included, and our second quarter 2026 Form 10-Q will include, additional information regarding these items.
(c)Par value less than $0.5 million at each date.




THE PNC FINANCIAL SERVICES GROUP, INC.
Page 3
Table 3: Average Consolidated Balance Sheet (Unaudited) (a) (b)
Three months ended Six months ended
June 30 March 31 December 31 September 30 June 30 June 30 June 30
In millions 2026 2026 2025 2025 2025 2026 2025
Assets
Interest-earning assets:
Investment securities
Securities available-for-sale
Residential mortgage-backed $ 37,333  $ 34,652  $ 33,564  $ 34,752  $ 34,567  $ 36,000  $ 34,182 
U.S. Treasury and government agencies 27,972 28,491 28,119 26,799 25,372 28,230 24,880 
Other 8,407 8,505 8,202 8,293 7,818 8,456 7,663 
Total securities available-for-sale 73,712 71,648 69,885 69,844 67,757 72,686 66,725
Securities held-to-maturity
Residential mortgage-backed 46,512  45,078  42,925  42,667  40,440  45,799  40,243 
U.S. Treasury and government agencies 18,687 20,683  23,426 25,540  26,900 19,679 27,910 
Other 8,188 7,117 5,983 6,384 6,838 7,656 7,180 
Total securities held-to-maturity 73,387 72,878 72,334 74,591 74,178 73,134 75,333
Total investment securities 147,099 144,526 142,219 144,435 141,935 145,820 142,058
Loans
Commercial and industrial 223,711 211,358 198,726 195,903 191,526 217,569 187,796 
Commercial real estate 35,057 34,367 30,173 30,850 31,838 34,714 32,450 
Consumer 55,334 55,483 54,884 54,238 53,851 55,408 53,637 
Residential real estate 49,094 49,675 44,146 44,941 45,539 49,383 45,823 
Total loans 363,196 350,883 327,929 325,932 322,754 357,074 319,706
Interest-earning deposits with banks (c) 30,734 32,612 32,009 35,003 31,570 31,668 33,209 
Other interest-earning assets 13,985 12,457 18,618 12,759 11,348 13,238 10,750 
Total interest-earning assets 555,014 540,478 520,775 518,129 507,607 547,800 505,723
Noninterest-earning assets 61,256 60,984 55,071 53,404 54,079 61,122 53,323 
Total assets $ 616,270  $ 601,462  $ 575,846  $ 571,533  $ 561,686  $ 608,922  $ 559,046 
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market $ 81,402  $ 85,196  $ 78,742  $ 75,890  $ 70,909  $ 83,288  $ 71,980 
Demand 136,487 137,558 132,591 128,962 126,222 137,020 125,637 
Savings 102,624 100,940 97,188 96,627 97,028 101,787 97,217 
Time deposits 33,027 35,579 36,180 37,593 35,674 34,295 34,227 
Total interest-bearing deposits 353,540 359,273 344,701 339,072 329,833 356,390 329,061
Borrowed funds
Federal Home Loan Bank advances 29,362 16,616 14,671  17,615 18,319 23,024 19,007 
Senior debt 38,184 37,383 38,623 38,012 36,142 37,786 35,541 
Subordinated debt 4,544 4,200 3,299 3,616 3,686 4,373 4,001 
Other 6,843 4,675 3,722 7,070 7,146 5,766 6,352 
Total borrowed funds 78,933 62,874 60,315 66,313 65,293 70,949 64,901
Total interest-bearing liabilities 432,473 422,147 405,016 405,385 395,126 427,339 393,962
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits 103,479 99,081 94,834 92,756 93,142 101,292 92,757 
Accrued expenses and other liabilities 16,848 16,944 16,646 15,624 16,942 16,909 16,580 
Equity 63,470 63,290 59,350 57,768 56,476 63,382 55,747 
Total liabilities and equity $ 616,270  $ 601,462  $ 575,846  $ 571,533  $ 561,686  $ 608,922  $ 559,046 
(a)Calculated using average daily balances.
(b)Nonaccrual loans are included in loans, net of unearned income. The impact of financial derivatives used in interest rate risk management is included in the interest income/expense and average yields/rates of the related assets and liabilities. Fair value adjustments related to hedged items are included in noninterest-earning assets and noninterest-bearing liabilities. Average balances of securities are based on amortized historical cost (excluding adjustments to fair value, which are included in other assets).
(c)Amounts include average balances held with the Federal Reserve Bank of $29.9 billion, $31.8 billion, $31.3 billion, $34.2 billion and $30.8 billion for the three months ended June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025 and June 30, 2025 and $30.8 billion and $32.5 billion for the six months ended June 30, 2026 and 2025, respectively.

THE PNC FINANCIAL SERVICES GROUP, INC.
Page 4
Table 4: Details of Net Interest Margin (Unaudited)
Three months ended Six months ended
June 30 March 31 December 31 September 30 June 30 June 30 June 30
2026 2026 2025 2025 2025 2026 2025
Average yields/rates (a)
Yield on interest-earning assets
Investment securities
Securities available-for-sale
Residential mortgage-backed 3.85  % 3.72  % 3.80  % 3.82  % 3.76  % 3.78  % 3.72  %
U.S. Treasury and government agencies 3.94  % 4.04  % 4.29  % 4.58  % 4.55  % 3.99  % 4.56  %
Other 4.01  % 4.00  % 3.97  % 3.91  % 3.69  % 4.00  % 3.67  %
Total securities available-for-sale 3.90  % 3.88  % 4.02  % 4.12  % 4.05  % 3.89  % 4.03  %
Securities held-to-maturity
Residential mortgage-backed 3.31  % 3.20  % 3.13  % 3.07  % 2.90  % 3.26  % 2.87  %
U.S. Treasury and government agencies 1.64  % 1.59  % 1.50  % 1.51  % 1.53  % 1.61  % 1.52  %
Other 4.36  % 4.23  % 4.28  % 4.35  % 4.34  % 4.30  % 4.37  %
Total securities held-to-maturity 3.00  % 2.84  % 2.70  % 2.65  % 2.54  % 2.92  % 2.51  %
Total investment securities 3.45  % 3.36  % 3.35  % 3.36  % 3.26  % 3.41  % 3.22  %
Loans
Commercial and industrial 5.39  % 5.43  % 5.55  % 5.78  % 5.72  % 5.41  % 5.71  %
Commercial real estate 5.71  % 5.79  % 5.92  % 6.06  % 6.01  % 5.75  % 5.97  %
Consumer 6.94  % 6.99  % 7.09  % 7.18  % 7.11  % 6.97  % 7.12  %
Residential real estate 4.03  % 3.97  % 3.74  % 3.75  % 3.76  % 4.00  % 3.77  %
Total loans 5.47  % 5.50  % 5.60  % 5.76  % 5.70  % 5.49  % 5.70  %
Interest-earning deposits with banks 3.63  % 3.64  % 3.92  % 4.34  % 4.38  % 3.63  % 4.38  %
Other interest-earning assets 4.69  % 4.95  % 4.95  % 5.51  % 5.66  % 4.80  % 5.83  %
Total yield on interest-earning assets 4.82  % 4.80  % 4.86  % 4.99  % 4.93  % 4.81  % 4.92  %
Rate on interest-bearing liabilities
Interest-bearing deposits
Money market 2.51  % 2.53  % 2.77  % 3.07  % 3.01  % 2.52  % 3.00  %
Demand 1.60  % 1.61  % 1.78  % 1.96  % 1.89  % 1.61  % 1.88  %
Savings 1.48  % 1.49  % 1.62  % 1.68  % 1.63  % 1.48  % 1.64  %
Time deposits 3.03  % 3.26  % 3.53  % 3.67  % 3.64  % 3.15  % 3.66  %
Total interest-bearing deposits 1.91  % 1.96  % 2.14  % 2.32  % 2.24  % 1.93  % 2.24  %
Borrowed funds
Federal Home Loan Bank advances 3.89  % 3.98  % 4.41  % 4.73  % 4.74  % 3.93  % 4.74  %
Senior debt 5.10  % 5.14  % 5.55  % 5.85  % 5.77  % 5.12  % 5.71  %
Subordinated debt 5.16  % 5.12  % 5.52  % 5.81  % 5.69  % 5.14  % 5.61  %
Other
4.08  % 4.14  % 4.02  % 4.19  % 4.24  % 4.10  % 4.30  %
Total borrowed funds 4.57  % 4.76  % 5.18  % 5.38  % 5.31  % 4.65  % 5.28  %
Total rate on interest-bearing liabilities 2.39  % 2.37  % 2.59  % 2.81  % 2.74  % 2.38  % 2.73  %
Interest rate spread 2.43  % 2.43  % 2.27  % 2.18  % 2.19  % 2.43  % 2.19  %
Benefit from use of noninterest-bearing sources (b) 0.53  % 0.52  % 0.57  % 0.61  % 0.61  % 0.53  % 0.60  %
Net interest margin 2.96  % 2.95  % 2.84  % 2.79  % 2.80  % 2.96  % 2.79  %
(a)Yields and rates are calculated using the applicable annualized interest income or interest expense divided by the applicable average earning assets or interest-bearing liabilities. Net interest margin is the total yield on interest-earning assets minus the total rate on interest-bearing liabilities and includes the benefit from use of noninterest-bearing sources. To provide more meaningful comparisons of net interest margins, we use net interest income on a taxable-equivalent basis in calculating average yields used in the calculation of net interest margin by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under GAAP in the Consolidated Income Statement. The taxable-equivalent adjustments to net interest income for the three months ended June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025 and June 30, 2025 were $27 million, $29 million, $31 million, $30 million and $28 million, respectively. The taxable-equivalent adjustments to net interest income for both the six months ended June 30, 2026 and 2025 were $56 million.
(b)Represents the positive effects of investing noninterest-bearing sources in interest-earning assets.

THE PNC FINANCIAL SERVICES GROUP, INC.
Page 5
Table 5: Details of Loans (Unaudited)
June 30 March 31 December 31 September 30 June 30
In millions 2026 2026 2025 2025 2025
Commercial
Commercial and industrial
Financial services $ 44,297  $ 42,224  $ 37,592  $ 33,939  $ 32,378 
Manufacturing 35,114 34,977 30,623 31,044 31,958
Service providers 27,756 27,303 25,552 25,159 24,373
Wholesale trade 22,713 21,146 19,843 19,917 20,045
Real estate related (a) 17,994 17,138 15,275 15,405 15,214
Retail trade 13,375 12,973 12,073 12,408 12,970
Technology, media and telecommunications 12,682 13,613 12,324 11,594 11,263
Transportation and warehousing 9,893 9,872 9,258 8,156 7,865
Rental and leasing 9,696 9,281 9,074 8,940 8,919
Health care 9,536 9,526 9,135 9,851 9,873
Other industries 24,859 23,137 22,149 20,681 20,900
Total commercial and industrial 227,915  221,190  202,898  197,094  195,758 
Commercial real estate 35,962  34,770  29,565  30,281  31,250 
Total commercial 263,877  255,960  232,463  227,375  227,008 
Consumer
Residential real estate 48,709  49,567  43,760  44,637  45,257 
Home equity 26,280  26,223  25,941  25,942  25,928 
Automobile 15,872  16,325  16,591  16,272  15,892 
Credit card 7,311  7,069  7,014  6,636  6,570 
Other consumer 5,904  5,779  5,712  5,754  5,685 
Total consumer 104,076  104,963  99,018  99,241  99,332 
Total loans $ 367,953  $ 360,923  $ 331,481  $ 326,616  $ 326,340 
(a)Represents loans to customers in the real estate and construction industries.



THE PNC FINANCIAL SERVICES GROUP, INC.
Page 6
Allowance for Credit Losses (Unaudited)

Table 6: Change in Allowance for Loan and Lease Losses
Three months ended Six months ended
June 30 March 31 December 31 September 30 June 30 June 30 June 30
Dollars in millions 2026 2026 2025 2025 2025 2026 2025
Allowance for loan and lease losses
Beginning balance $ 4,663  $ 4,410  $ 4,478  $ 4,523  $ 4,544  $ 4,410      $ 4,486 
Acquisition PCD reserves —  93  —  —  —  93      — 
Acquisition PSL reserves (a) —  229  —  —  —  229      — 
Adjusted beginning balance 4,663  4,732  4,478  4,523  4,544  4,732      4,486 
Gross charge-offs:
Commercial and industrial (141) (129) (85) (97) (99) (270) (212)
Commercial real estate (24) (19) (15) (19) (64) (43) (82)
Residential real estate —  (1) —  (6) —  (1) (2)
Home equity (10) (10) (7) (10) (9) (20) (18)
Automobile (29) (31) (33) (32) (30) (60) (65)
Credit card (78) (74) (73) (76) (81) (152) (171)
Other consumer (42) (45) (43) (44) (41) (87) (86)
Acquired loans (b) —  (45) —  —  —  (45) — 
Total gross charge-offs (324) (354) (256) (284) (324) (678) (636)
Recoveries:
Commercial and industrial 33  33  33  38  53  66  95 
Commercial real estate 3  5  3  6  8  8  13 
Residential real estate 2  2  3  3  3  4  5 
Home equity 7  8  8  7  12  15  20 
Automobile 21  20  22  25  24  41  47 
Credit card 19  20  15  17  15  39  30 
Other consumer 13  13  10  9  11  26  23 
Total recoveries 98  101  94  105  126  199  233 
Net (charge-offs) / recoveries:
Commercial and industrial (108) (96) (52) (59) (46) (204) (117)
Commercial real estate (21) (14) (12) (13) (56) (35) (69)
Residential real estate 2  1  3  (3) 3  3  3 
Home equity (3) (2) 1  (3) 3  (5) 2 
Automobile (8) (11) (11) (7) (6) (19) (18)
Credit card (59) (54) (58) (59) (66) (113) (141)
Other consumer (29) (32) (33) (35) (30) (61) (63)
Acquired loans —  (45) —  —  —  (45) — 
Total net (charge-offs) (226) (253) (162) (179) (198) (479) (403)
Provision for credit losses (c) 213  188  93  136  171  401  431 
Other 2  (4) 1  (2) 6  (2) 9 
Ending balance $ 4,652  $ 4,663  $ 4,410  $ 4,478  $ 4,523  $ 4,652  $ 4,523 
Supplemental Information
Net charge-offs
Commercial net charge-offs $ (129) $ (120) $ (64) $ (72) $ (102) $ (249) $ (186)
Consumer net charge-offs (97) (133) (98) (107) (96) (230) (217)
Total net charge-offs (226) (253) (162) (179) (198) (479) (403)
Net charge-offs to average loans (annualized) 0.25  % 0.29  % 0.20  % 0.22  % 0.25  % 0.25  % 0.25  %
Commercial 0.20  % 0.18  % 0.11  % 0.13  % 0.18  % 0.19  % 0.17  %
Consumer 0.37  % 0.38  % 0.39  % 0.43  % 0.39  % 0.38  % 0.44  %
(a)On January 1, 2026, we adopted ASU 2025-08 - Financial Instruments - Credit Losses (Topic 326): Purchased Loans, and established the initial ACL for purchased seasoned loans (PSLs). Our second quarter 2026 Form 10-Q will include additional information on the adoption of this ASU.
(b)Primarily represents the charge-off of certain loans previously charged off by FirstBank, which were written up upon acquisition to unpaid principal balance as required by purchase accounting.
(c)See Table 7 for the components of the Provision for credit losses being reported on the Consolidated Income Statement.


THE PNC FINANCIAL SERVICES GROUP, INC.
Page 7
Allowance for Credit Losses (Unaudited) (Continued)

Table 7: Components of the Provision for Credit Losses
Three months ended Six months ended
June 30 March 31 December 31 September 30 June 30 June 30 June 30
In millions 2026 2026 2025 2025 2025 2026 2025
Provision for credit losses
Loans and leases $ 213  $ 188  $ 93  $ 136  $ 171  $ 401  $ 431 
Unfunded lending related commitments (20) 14  43  16  84  (6) 38 
Investment securities (1) —  —  (1) (1) (1) 2 
Other financial assets (1) 8  3  16  —  7  2 
Total provision for credit losses $ 191  $ 210  $ 139  $ 167  $ 254  $ 401  $ 473 

Table 8: Allowance for Credit Losses by Loan Class (a)
June 30, 2026 March 31, 2026 June 30, 2025

Dollars in millions 		Allowance Amount Total Loans % of Total Loans Allowance Amount Total Loans % of Total Loans Allowance Amount Total Loans % of Total Loans
Allowance for loan and lease losses
Commercial
Commercial and industrial $ 2,219  $ 227,915  0.97  % $ 2,149  $ 221,190  0.97  % $ 1,948  $ 195,758  1.00  %
Commercial real estate 1,035  35,962  2.88  % 1,120  34,770  3.22  % 1,282  31,250  4.10  %
Total commercial 3,254  263,877  1.23  % 3,269  255,960  1.28  % 3,230  227,008  1.42  %
Consumer
Residential real estate 90  48,709  0.18  % 92  49,567  0.19  % 52  45,257  0.11  %
Home equity 280  26,280  1.07  % 275  26,223  1.05  % 292  25,928  1.13  %
Automobile 160  15,872  1.01  % 163  16,325  1.00  % 151  15,892  0.95  %
Credit card 647  7,311  8.85  % 647  7,069  9.15  % 579  6,570  8.81  %
Other consumer 221  5,904  3.74  % 217  5,779  3.75  % 219  5,685  3.85  %
Total consumer 1,398  104,076  1.34  % 1,394  104,963  1.33  % 1,293  99,332  1.30  %
Total
 4,652  $ 367,953  1.26  % 4,663  $ 360,923  1.29  % 4,523  $ 326,340  1.39  %
Allowance for unfunded lending related commitments
 809  832  759 
Allowance for credit losses
 $ 5,461  $ 5,495  $ 5,282 
Supplemental Information
Allowance for credit losses to total loans
 1.48  % 1.52  % 1.62  %
Commercial 1.49  % 1.55  % 1.69  %
Consumer 1.48  % 1.46  % 1.45  %
(a)    Excludes allowances for investment securities and other financial assets, which together totaled $99 million, $103 million and $88 million at June 30, 2026, March 31, 2026 and June 30, 2025, respectively.

THE PNC FINANCIAL SERVICES GROUP, INC.
Page 8
Details of Nonperforming Assets (Unaudited)

Table 9: Nonperforming Assets by Type
June 30 March 31 December 31 September 30 June 30
Dollars in millions 2026 2026 2025 2025 2025
Nonperforming loans
Commercial
Commercial and industrial
Manufacturing $ 186  $ 224  $ 98  $ 75  $ 73 
Service providers 131  136  116  119  126 
Wholesale trade 106  97  161  96  19 
Transportation and warehousing 83  71  62  68  68 
Real estate related (a) 50  25  27  20  24 
Health care 47  42  47  45  54 
Technology, media and telecommunications 41  25  27  83  31 
Retail trade 14  79  194  36  64 
Rental and leasing 4  5  6  13  16 
Other industries 23  46  46  64  23 
Total commercial and industrial 685  750  784  619  498 
Commercial real estate 464  630  574  663  753 
Total commercial 1,149  1,380  1,358  1,282  1,251 
Consumer (b)
Residential real estate 325  316  320  326  325 
Home equity 456  447  439  431  436 
Automobile 82  85  83  82  80 
Credit card 11  12  13  13  13 
Other consumer 4  3  5  3  3 
Total consumer 878  863  860  855  857 
Total nonperforming loans (c) 2,027  2,243  2,218  2,137  2,108 
OREO, foreclosed and other assets (d) 123  139  143  162  33 
Total nonperforming assets $ 2,150  $ 2,382  $ 2,361  $ 2,299  $ 2,141 
Nonperforming loans to total loans 0.55  % 0.62  % 0.67  % 0.65  % 0.65  %
Nonperforming assets to total loans, OREO, foreclosed and other assets (d) 0.58  % 0.66  % 0.71  % 0.70  % 0.66  %
Nonperforming assets to total assets 0.35  % 0.40  % 0.41  % 0.40  % 0.38  %
Allowance for loan and lease losses to nonperforming loans 230  % 208  % 199  % 210  % 215  %
(a)Represents loans related to customers in the real estate and construction industries.
(b)Excludes most unsecured consumer loans and lines of credit, which are charged off after 120 to 180 days past due and are not placed on nonperforming status.
(c)Nonperforming loans exclude certain government insured or guaranteed loans, loans held for sale and loans accounted for under the fair value option.
(d)Amounts include nonaccrual servicing advances primarily to single asset/single borrower trusts with commercial real estate as collateral totaling $90 million, $103 million, $105 million and $127 million at June 30, 2026, March 31, 2026, December 31, 2025 and September 30, 2025, respectively.


Table 10: Change in Nonperforming Assets
Three months ended
June 30 March 31 December 31 September 30 June 30
Dollars in millions 2026 2026 2025 2025 2025
Beginning balance $ 2,382  $ 2,361  $ 2,299  $ 2,141  $ 2,324 
New nonperforming assets 335  539  569  653  367 
Charge-offs and valuation adjustments (150) (152) (91) (103) (149)
Principal activity, including paydowns and payoffs (174) (343) (248) (299) (312)
Asset sales and transfers to loans held for sale (68) (9) (33) (13) (5)
Returned to performing status (175) (95) (135) (80) (84)
Acquired nonperforming assets —  81  —  —  — 
Ending balance $ 2,150  $ 2,382  $ 2,361  $ 2,299  $ 2,141 








THE PNC FINANCIAL SERVICES GROUP, INC.
Page 9
Accruing Loans Past Due (Unaudited)              

Table 11: Accruing Loans Past Due 30 to 59 Days (a)
June 30 March 31 December 31 September 30 June 30
Dollars in millions 2026 2026 2025 2025 2025
Commercial
Commercial and industrial $ 123 $ 283 $ 182 $ 161 $ 133
Commercial real estate 7 90 14 9 43
Total commercial 130 373 196 170 176
Consumer
Residential real estate
Non government insured 305 221 170 166 169
Government insured 67 63 73 79 78
Home equity 65 73 70 73 62
Automobile 59 59 74 70 74
Credit card 37 41 45 45 42
Other consumer 32 33 32 32 34
Total consumer 565 490 464 465 459
Total $ 695 $ 863 $ 660 $ 635 $ 635
Supplemental Information
Total accruing loans past due 30-59 days to total loans 0.19  % 0.24  % 0.20  % 0.19  % 0.19  %
Commercial 0.05  % 0.15  % 0.08  % 0.07  % 0.08  %
Consumer 0.54  % 0.47  % 0.47  % 0.47  % 0.46  %
(a)Excludes loans held for sale.


Table 12: Accruing Loans Past Due 60 to 89 Days (a)
June 30 March 31 December 31 September 30 June 30
Dollars in millions 2026 2026 2025 2025 2025
Commercial
Commercial and industrial $ 121 $ 50 $ 103 $ 67 $ 101
Commercial real estate 9 17 98 — 6
Total commercial 130 67 201 67 107
Consumer
Residential real estate
Non government insured 78 69 57 48 52
Government insured 37 41 44 39 39
Home equity 26 32 30 27 28
Automobile 15 15 18 17 19
Credit card 28 31 32 31 32
Other consumer 24 18 21 22 20
Total consumer 208 206 202 184 190
Total $ 338 $ 273 $ 403 $ 251 $ 297
Supplemental Information
Total accruing loans past due 60-89 days to total loans 0.09  % 0.08  % 0.12  % 0.08  % 0.09  %
Commercial 0.05  % 0.03  % 0.09  % 0.03  % 0.05  %
Consumer 0.20  % 0.20  % 0.20  % 0.19  % 0.19  %
(a)Excludes loans held for sale.




THE PNC FINANCIAL SERVICES GROUP, INC.
Page 10
Accruing Loans Past Due (Unaudited) (Continued)

Table 13: Accruing Loans Past Due 90 Days or More (a)
June 30 March 31 December 31 September 30 June 30
Dollars in millions 2026 2026 2025 2025 2025
Commercial
Commercial and industrial $ 76  $ 68  $ 57  $ 71  $ 79 
Commercial real estate —  1  —  1  — 
Total commercial 76   69   57   72   79  
Consumer
Residential real estate
Non government insured 42  50  46  38  53 
Government insured 188  195  163  126  129 
Automobile 4  5  5  4  5 
Credit card 56  64  65  63  64 
Other consumer 37  39  44  44  41 
Total consumer 327   353   323   275   292  
Total $ 403  $ 422  $ 380  $ 347  $ 371 
Supplemental Information
Total accruing loans past due 90 days or more to total loans 0.11  % 0.12  % 0.11  % 0.11  % 0.11  %
Commercial 0.03  % 0.03  % 0.02  % 0.03  % 0.03  %
Consumer 0.31  % 0.34  % 0.33  % 0.28  % 0.29  %
Total accruing loans past due $ 1,436  $ 1,558  $ 1,443  $ 1,233  $ 1,303 
Commercial $ 336  $ 509  $ 454  $ 309  $ 362 
Consumer $ 1,100  $ 1,049  $ 989  $ 924  $ 941 
Total accruing loans past due to total loans 0.39  % 0.43  % 0.44  % 0.38  % 0.40  %
Commercial 0.13  % 0.20  % 0.20  % 0.14  % 0.16  %
Consumer 1.06  % 1.00  % 1.00  % 0.93  % 0.95  %
(a)Excludes loans held for sale.










































THE PNC FINANCIAL SERVICES GROUP, INC.
Page 11
Business Segment Descriptions (Unaudited)

Retail Banking provides deposit, lending, brokerage, insurance services, investment management and cash management products and services to consumer and small business customers who are serviced through our coast-to-coast branch network, digital channels, ATMs, or through our phone-based customer contact centers. Deposit products include checking, savings and money market accounts and time deposits. Lending products include residential mortgages, home equity loans and lines of credit, auto loans, credit cards, personal and small business loans and lines of credit. The residential mortgage loans are directly originated within our branch network and nationwide, and are typically underwritten to agency and/or third-party standards, and either sold, servicing retained or held on our balance sheet. PNC Wealth Management offers brokerage, investment management and cash management products and services which include managed, education, retirement and trust accounts.

Corporate & Institutional Banking provides lending, treasury management, capital markets and advisory products and services to mid-sized and large corporations and government and not-for-profit entities. Lending products include secured and unsecured loans, letters of credit and equipment leases. The Treasury Management business provides corporations with cash and investment management services, receivables and disbursement management services, funds transfer services and access to online/mobile information management and reporting services. Capital markets and advisory includes services and activities primarily related to merger and acquisitions advisory, equity capital markets advisory, asset-backed financing, loan syndication, securities underwriting and customer-related trading. We also provide commercial loan servicing and technology solutions for the commercial real estate finance industry. Products and services are provided nationally.

Asset Management Group provides private banking for high net worth and ultra high net worth clients and institutional asset management. The Asset Management Group is composed of two operating units:
•PNC Private Bank provides products and services to emerging affluent, high net worth and ultra high net worth individuals and their families, including investment and retirement planning, customized investment management, credit and cash management solutions, trust management and administration. In addition, multi-generational family planning services are also provided to ultra high net worth individuals and their families, which include estate, financial, tax, fiduciary and customized performance reporting.
•Institutional Asset Management provides outsourced chief investment officer, custody, cash and fixed income client solutions, and retirement plan fiduciary investment services to institutional clients, including corporations, healthcare systems, insurance companies, municipalities and non-profits.

Table 14: Period End Employees
June 30 March 31 December 31 September 30 June 30
2026 2026 2025 2025 2025
Full-time employees
Retail Banking 26,611  28,046  26,168  26,126  26,291 
Other full-time employees 29,093  28,320  27,691  27,397  26,884 
Total full-time employees 55,704  56,366  53,859  53,523  53,175 
Part-time employees
Retail Banking 1,429  1,389  1,427  1,367  1,465 
Other part-time employees 495  46  47  48  407 
Total part-time employees 1,924  1,435  1,474  1,415  1,872 
Total 57,628  57,801  55,333  54,938  55,047 


THE PNC FINANCIAL SERVICES GROUP, INC.
Page 12
Table 15: Summary of Business Segment Net Income and Revenue (Unaudited) (a)
Three months ended Six months ended
June 30 March 31 December 31 September 30 June 30 June 30 June 30
In millions 2026 2026 2025 2025 2025 2026 2025
Net Income (b)
Retail Banking $ 1,747  $ 1,349  $ 1,266  $ 1,351  $ 1,386  $ 3,096  $ 2,534 
Corporate & Institutional Banking 1,588  1,480  1,597  1,545  1,318  3,068  2,651 
Asset Management Group 135  121  124  120  132  256  240 
Other (1,430) (1,190) (967) (1,208) (1,209) (2,620) (2,317)
Net income excluding noncontrolling interests $ 2,040  $ 1,760  $ 2,020  $ 1,808  $ 1,627  $ 3,800  $ 3,108 
  
Revenue (b)
Retail Banking $ 4,518  $ 4,007  $ 3,792  $ 3,840  $ 3,792  $ 8,525  $ 7,371 
Corporate & Institutional Banking 3,283  3,086  3,175  3,020  2,836  6,369  5,582 
Asset Management Group 462  455  444  433  428  917  849 
Other (1,388) (1,383) (1,340) (1,378) (1,395) (2,771) (2,689)
Total revenue $ 6,875  $ 6,165  $ 6,071  $ 5,915  $ 5,661  $ 13,040  $ 11,113 
(a)Our business information is presented based on our internal management reporting practices. Net interest income in business segment results reflects PNC’s internal funds transfer pricing methodology. Assets receive a funding charge and liabilities and capital receive a funding credit based on a transfer pricing methodology that incorporates product repricing characteristics, tenor and other factors.
(b)During the second quarter of 2026, PNC updated its internal funds transfer pricing methodology. The update resulted in impacts to net interest income and associated income statement line items for all business segments. Prior periods have been adjusted to conform with the current presentation.


THE PNC FINANCIAL SERVICES GROUP, INC.
Page 13
Table 16: Retail Banking (Unaudited) (a)
Three months ended Six months ended
June 30 March 31 December 31 September 30 June 30 June 30 June 30
Dollars in millions 2026 2026 2025 2025 2025 2026 2025
Income Statement
Net interest income (b) $ 3,291  $ 3,237  $ 3,022  $ 3,050  $ 3,010  $ 6,528  $ 5,883 
Noninterest income 1,227  770  770  790  782  1,997  1,488 
Total revenue (b) 4,518  4,007  3,792  3,840  3,792  8,525  7,371 
Provision for credit losses 120  124  155  126  83  244  251 
Noninterest expense
Personnel 551  571  535  529  539  1,122  1,077 
Segment allocations (c) 1,090  1,088  1,020  979  978  2,178  1,945 
Depreciation and amortization 138  132  95  97  87  270  173 
Other (d) 332  324  327  336  286  656  597 
Total noninterest expense 2,111  2,115  1,977  1,941  1,890  4,226  3,792 
Pre-tax earnings (b) 2,287  1,768  1,660  1,773  1,819  4,055  3,328 
Income taxes (b) 532  412  387  413  423  944  775 
Noncontrolling interests 8  7  7  9  10  15  19 
Earnings (b) $ 1,747  $ 1,349  752  $ 1,266  $ 1,351  $ 1,386  $ 3,096  $ 2,534 
Average Balance Sheet
Loans held for sale $ 616  $ 562  $ 699  $ 785  $ 874  $ 589  $ 867 
Loans
Consumer
Residential real estate $ 38,348  $ 38,939  $ 33,336  $ 34,043  $ 34,647  $ 38,642  $ 34,920 
Home equity 24,859  24,913  24,559  24,551  24,551  24,886  24,548 
Automobile 16,058  16,499  16,403  16,035  15,738  16,278  15,491 
Credit card 7,128  6,912  6,754  6,561  6,483  7,020  6,525 
Other consumer 3,164  3,257  3,320  3,334  3,342  3,210  3,368 
Total consumer 89,557  90,520  84,372  84,524  84,761  90,036  84,852 
Commercial 20,989  20,423  12,603  12,353  12,725  20,708  12,783 
Total loans $ 110,546  $ 110,943  $ 96,975  $ 96,877  $ 97,486  $ 110,744  $ 97,635 
Total assets $ 130,460  $ 130,616  $ 113,714  $ 114,146  $ 114,061  $ 130,537  $ 114,601 
Deposits
Noninterest-bearing $ 60,547  $ 58,714  $ 52,125  $ 52,604  $ 52,353  $ 59,635  $ 51,833 
Interest-bearing 211,055  209,519  191,941  190,652  191,190  210,292  190,381 
Total deposits $ 271,602  $ 268,233  $ 244,066  $ 243,256  $ 243,543  $ 269,927  $ 242,214 
Performance Ratios (b)
Return on average assets 5.37  % 4.19  % 4.42  % 4.70  % 4.87  % 4.78  % 4.46  %
Noninterest income to total revenue 27  % 19  % 20  % 21  % 21  % 23  % 20  %
Efficiency 47  % 53  % 52  % 51  % 50  % 50  % 51  %
(continued on following page)



THE PNC FINANCIAL SERVICES GROUP, INC.
Page 14
Retail Banking (Unaudited) (Continued)
Three months ended Six months ended
June 30 March 31 December 31 September 30 June 30 June 30 June 30
Dollars in millions, except as noted 2026 2026 2025 2025 2025 2026 2025
Supplemental Noninterest Income Information
Asset management and brokerage $ 172  $ 161  $ 155  $ 154  $ 150  $ 333  $ 302 
Card and cash management $ 350  $ 322  $ 328  $ 334  $ 328  $ 672  $ 624 
Lending and deposit services $ 204  $ 200  $ 199  $ 199  $ 190  $ 404  $ 374 
Residential and commercial mortgage $ 83  $ 63  $ 78  $ 89  $ 61  $ 146  $ 126 
Other income - Gain on Visa shares exchange program $ 448  $ —  $ —  $ —  $ —  $ 448  $ — 
Residential Mortgage Information
Residential mortgage servicing statistics (e)
Serviced portfolio balance (in billions) (f) $ 209  $ 212  $ 198  $ 199  $ 189 
MSR asset value (f) $ 2,762  $ 2,786  $ 2,638  $ 2,622  $ 2,457 
Servicing income:
Servicing fees, net (g) $ 61  $ 68  $ 63  $ 60  $ 60  $ 129  $ 131 
Mortgage servicing rights valuation, net of economic hedge $ 3  $ (27) $ (5) $ 18  $ 2  $ (24) $ (2)
Residential mortgage loan statistics
Loan origination volume (in billions) $ 1.7  $ 1.5  $ 1.6  $ 1.5  $ 1.7  $ 3.2  $ 2.7 
Loan sale margin percentage 2.01  % 2.25  % 1.88  % 1.67  % 0.91  % 2.12  % 0.78  %
Other Information
Credit-related statistics
Nonperforming assets (f) $ 944  $ 932  $ 840  $ 827  $ 812 
Net charge-offs - loans and leases $ 123  $ 118  $ 116  $ 126  $ 120  $ 241  $ 264 
Other statistics
Branches (f)(h) 2,304  2,315  2,224  2,219  2,218 
Brokerage account client assets (in billions) (f)(i) $ 97  $ 91  $ 91  $ 89  $ 87 
(a)See note (a) on page 12.
(b)See note (b) on page 12.
(c)Represents expense allocations for corporate overhead services used by each business segment; primarily comprised of technology, human resources and occupancy-related allocations.
(d)Other is primarily comprised of other direct expenses including outside services and equipment expense.
(e)Represents mortgage loan servicing balances for third parties and the related income.
(f)Presented as of period end.
(g)Servicing fees net of impact of decrease in MSR value due to passage of time, which includes the impact from regularly scheduled loan principal payments, prepayments and loans paid off during the period.
(h)Reflects all branches excluding standalone mortgage offices and satellite offices (e.g., drive-ups, electronic branches and retirement centers) that provide limited products and/or services.
(i)Includes cash and money market balances.





THE PNC FINANCIAL SERVICES GROUP, INC.
Page 15
Table 17: Corporate & Institutional Banking (Unaudited) (a)
Three months ended Six months ended
June 30 March 31 December 31 September 30 June 30 June 30 June 30
Dollars in millions 2026 2026 2025 2025 2025 2026 2025
Income Statement
Net interest income (b) $ 1,992  $ 1,942  $ 1,965  $ 1,888  $ 1,814  $ 3,934  $ 3,582 
Noninterest income 1,291  1,144  1,210  1,132  1,022  2,435  2,000 
Total revenue (b) 3,283  3,086  3,175  3,020  2,836  6,369  5,582 
Provision for credit losses 76  77  14  44  184  153  233 
Noninterest expense
Personnel 502  460  472  403  370  962  746 
Segment allocations (c) 418  424  422  387  381  842  764 
Depreciation and amortization 50  46  55  46  49  96  100 
Other (d) 161  146  158  140  150  307  296 
Total noninterest expense 1,131  1,076  1,107  976  950  2,207  1,906 
Pre-tax earnings (b) 2,076  1,933  2,054  2,000  1,702  4,009  3,443 
Income taxes (b) 483  448  451  450  379  931  783 
Noncontrolling interests 5  5  6  5  5  10  9 
Earnings (b) $ 1,588  $ 1,480  $ 1,597  $ 1,545  $ 1,318  $ 3,068  $ 2,651 
Average Balance Sheet
Loans held for sale $ 635  $ 665  $ 632  $ 691  $ 775  $ 650  $ 516 
Loans
Commercial
Commercial and industrial $ 207,046  $ 194,711  $ 185,195  $ 182,484  $ 177,630  $ 200,913  $ 173,872 
Commercial real estate 29,008  28,802  29,374  30,032  30,962  28,905  31,553 
Total commercial 236,054  223,513  214,569  212,516  208,592  229,818  205,425 
Consumer 3  3  2  2  4  3  3 
Total loans $ 236,057  $ 223,516  $ 214,571  $ 212,518  $ 208,596  $ 229,821  $ 205,428 
Total assets $ 263,912  $ 249,789  $ 241,169  $ 238,338  $ 234,391  $ 256,890  $ 230,750 
Deposits
Noninterest-bearing $ 41,441  $ 38,959  $ 41,308  $ 38,732  $ 39,196  $ 40,207  $ 39,347 
Interest-bearing 117,169  122,219  122,457  116,460  107,275  119,680  107,886 
Total deposits $ 158,610  $ 161,178  $ 163,765  $ 155,192  $ 146,471  $ 159,887  $ 147,233 
Performance Ratios (b)
Return on average assets 2.41  % 2.40  % 2.63  % 2.57  % 2.26  % 2.41  % 2.32  %
Noninterest income to total revenue 39  % 37  % 38  % 37  % 36  % 38  % 36  %
Efficiency 34  % 35  % 35  % 32  % 33  % 35  % 34  %
(continued on following page)


























THE PNC FINANCIAL SERVICES GROUP, INC.
Page 16
Corporate & Institutional Banking (Unaudited) (Continued)
Three months ended Six months ended
June 30 March 31 December 31 September 30 June 30 June 30 June 30
Dollars in millions 2026 2026 2025 2025 2025 2026 2025
Other Information
Consolidated revenue from:
Treasury Management (b) (e) $ 1,171  $ 1,171  $ 1,199  $ 1,122  $ 1,079  $ 2,342  $ 2,130 
Commercial mortgage banking activities:
Commercial mortgage loans held for sale (b) (f) $ 23  $ 14  $ 34  $ 23  $ 24  $ 37  $ 50 
Commercial mortgage loan servicing income (b) (g) 127  120  128  135  129  247  238 
Commercial mortgage servicing rights valuation, net of economic hedge 33  28  37  47  36  61  75 
Total $ 183  $ 162  $ 199  $ 205  $ 189  $ 345  $ 363 
Commercial mortgage servicing statistics
Serviced portfolio balance (in billions) (h)(i) $ 294  $ 296  $ 294  $ 293  $ 295 
MSR asset value (h) $ 1,039  $ 1,029  $ 1,021  $ 1,006  $ 1,010 
Average loans by C&IB business (j)
Corporate Banking $ 139,370  $ 128,837  $ 121,379  $ 118,445  $ 114,607  $ 134,132  $ 111,968 
Real Estate 41,002  41,074  40,836  41,863  42,533  41,038  42,906 
Business Credit 36,012  33,944  32,552  32,412  31,544  34,983  30,798 
Equipment Finance 10,717  10,595  10,551  10,476  10,422  10,656  10,346 
Commercial Banking 5,944  5,976  5,904  6,063  6,194  5,960  6,229 
Other 3,012  3,090  3,349  3,259  3,296  3,052  3,181 
Total average loans $ 236,057  $ 223,516  $ 214,571  $ 212,518  $ 208,596  $ 229,821  $ 205,428 
Credit-related statistics
Nonperforming assets (h) $ 1,066  $ 1,309  $ 1,375  $ 1,323  $ 1,160 
Net charge-offs - loans and leases $ 105  $ 92  $ 49  $ 53  $ 83  $ 197  $ 147 
(a)See note (a) on page 12.
(b)See note (b) on page 12.
(c)Represents expense allocations for corporate overhead services used by each business segment; primarily comprised of technology, human resources and occupancy-related allocations.
(d)Other is primarily comprised of other direct expenses including outside services and equipment expense.
(e)Amounts are reported in net interest income and noninterest income.
(f)Represents commercial mortgage banking income for valuations on commercial mortgage loans held for sale and related commitments, derivative valuations, origination fees, gains on sale of loans held for sale and net interest income on loans held for sale.
(g)Represents net interest income and noninterest income from loan servicing, net of reduction in commercial mortgage servicing rights due to time and payoffs. Commercial mortgage servicing rights valuation, net of economic hedge is shown separately.
(h)Presented as of period end.
(i)Represents balances related to capitalized servicing.
(j)During the second quarter of 2026, equipment finance activity was centralized and established as a business unit within C&IB. As a result, certain loans were reclassified from Corporate Banking, Commercial Banking and Other to Equipment Finance. Prior periods have been adjusted to conform with the current presentation.


THE PNC FINANCIAL SERVICES GROUP, INC.
Page 17
Table 18: Asset Management Group (Unaudited) (a)
Three months ended Six months ended
June 30 March 31 December 31 September 30 June 30 June 30 June 30
Dollars in millions, except as noted 2026 2026 2025 2025 2025 2026 2025
Income Statement
Net interest income (b) $ 191  $ 193  $ 184  $ 179  $ 184  $ 384  $ 362 
Noninterest income 271  262  260  254  244  533  487 
Total revenue (b) 462  455  444  433  428  917  849 
Provision for (recapture of) credit losses (3) 5  (11) 4  (13) 2  (12)
Noninterest expense
Personnel 120  125  120  115  115  245  236 
Segment allocations (c) 128  127  133  120  118  255  235 
Depreciation and amortization 11  10  11  9  10  21  18 
Other (d) 30  30  29  29  25  60  58 
Total noninterest expense 289  292  293  273  268  581  547 
Pre-tax earnings (b) 176  158  162  156  173  334  314 
Income taxes (b) 41  37  38  36  41  78  74 
Earnings (b) $ 135  $ 121  $ 124  $ 120  $ 132  $ 256  $ 240 
Average Balance Sheet
Loans
Consumer
Residential real estate $ 9,866  $ 9,826  $ 9,876  $ 9,937  $ 9,912  $ 9,846  $ 9,910 
Other consumer 3,964  3,735  3,673  3,574  3,543  3,850  3,508 
Total consumer 13,830  13,561  13,549  13,511  13,455  13,696  13,418 
Commercial 814  835  566  659  731  825  694 
Total loans $ 14,644  $ 14,396  $ 14,115  $ 14,170  $ 14,186  $ 14,521  $ 14,112 
Total assets $ 15,048  $ 14,804  $ 14,505  $ 14,575  $ 14,629  $ 14,927  $ 14,556 
Deposits
Noninterest-bearing $ 1,459  $ 1,411  $ 1,387  $ 1,426  $ 1,585  $ 1,435  $ 1,563 
Interest-bearing 25,575  26,310  25,564  25,437  25,327  25,941  25,714 
Total deposits $ 27,034  $ 27,721  $ 26,951  $ 26,863  $ 26,912  $ 27,376  $ 27,277 
Performance Ratios (b)
Return on average assets 3.60  % 3.31  % 3.39  % 3.27  % 3.62  % 3.46  % 3.32  %
Noninterest income to total revenue 59  % 58  % 59  % 59  % 57  % 58  % 57  %
Efficiency 63  % 64  % 66  % 63  % 63  % 63  % 64  %
Other Information
Nonperforming assets (e) $ 45  $ 45  $ 52  $ 58  $ 63 
Net charge-offs (recoveries) - loans and leases $ 1  $ —  $ —  $ 2  $ (1) $ 1  $ (1)
Client Assets Under Administration (in billions) (e)(f)
Discretionary client assets under management
 PNC Private Bank $ 146  $ 136  $ 138  $ 137  $ 131 
Institutional Asset Management 101  94  96  91  86 
Total discretionary clients assets under management 247  230  234  228  217 
Nondiscretionary client assets under administration 256  233  238  212  204 
Total $ 503  $ 463  $ 472  $ 440  $ 421 
(a)See note (a) on page 12.
(b)See note (b) on page 12.
(c)Represents expense allocations for corporate overhead services used by each business segment; primarily comprised of technology, human resources and occupancy-related allocations.
(d)Other is primarily comprised of other direct expenses including outside services and equipment expense.
(e)Presented as of period end.
(f)Excludes brokerage account client assets.

THE PNC FINANCIAL SERVICES GROUP, INC.
Page 18
Glossary of Terms

Allowance for credit losses (ACL) – A valuation account that is deducted from or added to the amortized cost basis of the related
financial assets to present the net carrying value at the amount expected to be collected on the financial asset.

Amortized cost basis – Amount at which a financial asset is originated or acquired, adjusted for applicable accretion or amortization of premiums, discounts and net deferred fees or costs, collection of cash, charge-offs, foreign exchange and fair value hedge accounting adjustments.

Basel III common equity tier 1 (CET1) capital (Tailoring Rules) – Common stock plus related surplus, net of treasury stock, plus retained earnings, less goodwill, net of associated deferred tax liabilities, less other disallowed intangibles, net of deferred tax liabilities and plus/less other adjustments. Investments in unconsolidated financial institutions, as well as mortgage servicing rights and deferred tax assets, must then be deducted to the extent such items (net of associated deferred tax liabilities) individually exceed 25% of our adjusted Basel III common equity tier 1 capital.

Basel III common equity tier 1 capital ratio – Common equity tier 1 capital divided by period-end risk-weighted assets (as applicable).

Basel III tier 1 capital – Common equity tier 1 capital, plus qualifying preferred stock, plus certain trust preferred capital securities, plus certain noncontrolling interests that are held by others and plus/less other adjustments.

Basel III tier 1 capital ratio – Tier 1 capital divided by period-end risk-weighted assets (as applicable).

Basel III Total capital – Tier 1 capital plus qualifying subordinated debt, plus certain trust preferred securities, plus, under the Basel III transitional rules and the standardized approach, the allowance for loan and lease losses included in tier 2 capital and other.

Basel III Total capital ratio – Basel III Total capital divided by period-end risk-weighted assets (as applicable).

Charge-off – Process of removing a loan or portion of a loan from our balance sheet because it is considered uncollectible. We also record a charge-off when a loan is transferred from portfolio holdings to held for sale by reducing the loan carrying amount to the fair value of the loan, if fair value is less than carrying amount.

Common shareholders’ equity – Total shareholders' equity less the liquidation value of preferred stock.

Credit valuation adjustment – Represents an adjustment to the fair value of our derivatives for our own and counterparties’ non-performance risk.

Criticized commercial loans – Loans with potential or identified weaknesses based upon internal risk ratings that comply with the regulatory classification definitions of “special mention,” “substandard” or “doubtful.”

Current Expected Credit Loss (CECL) – Methodology for estimating the allowance for credit losses on in-scope financial assets held at amortized cost and unfunded lending related commitments which uses a combination of expected losses over a reasonable and supportable forecast period, a reversion period and long run average credit losses for their estimated contractual term.

Discretionary client assets under management – Assets over which we have sole or shared investment authority for our customers/clients. We do not include these assets on our Consolidated Balance Sheet.

Earning assets – Assets that generate income, which include: interest-earning deposits with banks; loans held for sale; loans; investment securities; and certain other assets.

Efficiency – Noninterest expense divided by total revenue.

Fair value – The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Fee income – Refers to the following categories within Noninterest income: Asset management and brokerage, Capital markets and advisory, Card and cash management, Lending and deposit services, and Residential and commercial mortgage.

GAAP – Accounting principles generally accepted in the United States of America.

Leverage ratio – Basel III tier 1 capital divided by average quarterly adjusted total assets.

Nondiscretionary client assets under administration – Assets we hold for our customers/clients in a nondiscretionary, custodial capacity. We do not include these assets on our Consolidated Balance Sheet.

THE PNC FINANCIAL SERVICES GROUP, INC.
Page 19

Nonperforming assets – Nonperforming assets include nonperforming loans, OREO, foreclosed and other assets. We do not accrue interest income on assets classified as nonperforming.

Nonperforming loans – Loans accounted for at amortized cost whose credit quality has deteriorated to the extent that full collection of contractual principal and interest is not probable. Interest income is not recognized on nonperforming loans. Nonperforming loans exclude certain government insured or guaranteed loans for which we expect to collect substantially all principal and interest, loans held for sale and loans accounted for under the fair value option.

Operating leverage – The period to period dollar or percentage change in total revenue less the dollar or percentage change in noninterest expense. A positive variance indicates that revenue growth exceeded expense growth (i.e., positive operating leverage) while a negative variance implies expense growth exceeded revenue growth (i.e., negative operating leverage).

Other real estate owned (OREO) and foreclosed assets – Assets taken in settlement of troubled loans primarily through deed-in-lieu of foreclosure or foreclosure. Foreclosed assets include real and personal property. Certain assets that have a government-guarantee which are classified as other receivables are excluded.

Purchased credit deteriorated assets (PCD) – Acquired loans or debt securities that, at acquisition, are determined to have experienced a more-than-insignificant deterioration in credit quality since origination or issuance.

Purchased seasoned loans (PSL) – Acquired loans that, at acquisition, have not experienced a more-than-insignificant credit deterioration since origination and are deemed "seasoned". A loan is seasoned if it was purchased more than 90 days after origination and PNC was not involved in the origination of the loan. All loans that are acquired without credit deterioration through a business combination are deemed "seasoned".

Risk-weighted assets – Computed by the assignment of specific risk-weights (as defined by the Board of Governors of the Federal Reserve System) to assets and off-balance sheet instruments.

Servicing rights – Intangible assets or liabilities created by an obligation to service assets for others. Typical servicing rights include the right to receive a fee for collecting and forwarding payments on loans and related taxes and insurance premiums held in escrow.

Supplementary leverage ratio – Basel III tier 1 capital divided by Supplementary leverage exposure.

Tailoring Rules – Rules adopted by the federal banking agencies to better tailor the application of their capital, liquidity, and enhanced prudential requirements for banking organizations to the asset size and risk profile (as measured by certain regulatory metrics) of the banking organization. Effective January 1, 2020, the agencies' capital and liquidity rules classify all BHCs with $100 billion or more in total assets into one of four categories (Category I, Category II, Category III, and Category IV).

Taxable-equivalent interest income – The interest income earned on certain assets that is completely or partially exempt from federal income tax. These tax-exempt instruments typically yield lower returns than taxable investments.

Unfunded lending related commitments – Standby letters of credit, financial guarantees, commitments to extend credit and similar unfunded obligations that are not unilaterally, unconditionally, cancelable at PNC’s option.