Exhibit 99.1

pncbanklogoa181.jpg



THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT
FOURTH QUARTER 2020
(Unaudited)




THE PNC FINANCIAL SERVICES GROUP, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2020
(UNAUDITED)
Consolidated Results:
Page
7-8
9-10
11-12
Business Segment Results:
15-16
19-21

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on January 15, 2021. We have reclassified certain prior period amounts to be consistent with the current period presentation, which we believe is more meaningful to readers of our consolidated financial statements. 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, including residential mortgage, corporate and institutional banking and asset management, providing many of its products and services nationally. PNC's retail branch network is located primarily in markets across the Mid-Atlantic, Midwest and Southeast. PNC also has strategic international offices in four countries outside the U.S.

DISCONTINUED OPERATIONS
On May 15, 2020, PNC completed the sale of its 31.6 million shares of BlackRock, Inc., common and preferred stock through a registered secondary offering. In addition, BlackRock repurchased 2.65 million shares from PNC. The total proceeds from the sale were $14.2 billion in cash, net of $.2 billion in expenses, and resulted in a gain on sale of $4.3 billion. Additionally, PNC contributed 500,000 BlackRock shares to the PNC Foundation on May 18, 2020. As a result, PNC has divested its entire holding in BlackRock. PNC and its affiliates only hold shares of BlackRock stock in a fiduciary capacity for clients of PNC and its affiliates. Activity for BlackRock for all periods presented on the Consolidated Income Statement have been reclassified to discontinued operations and prior period BlackRock investment balances have been reclassified to the Asset held for sale line on the Consolidated Balance Sheet in accordance with Accounting Standard Codification (ASC) 205-20, Presentation of Financial Statements - Discontinued Operations.

PENDING ACQUISITION OF BBVA USA BANCSHARES, INC.
On November 16, 2020, PNC announced the signing of a definitive agreement with BBVA, S.A. to acquire BBVA USA Bancshares, Inc., a U.S. financial holding company conducting its business operations primarily through its U.S. banking subsidiary, BBVA USA for a fixed purchase price of $11.6 billion in cash. BBVA USA has over 600 branches in Texas, Alabama, Arizona, California, Florida, Colorado and New Mexico. The transaction is expected to add approximately $102 billion in total assets, $86 billion of deposits and $66 billion of loans to PNC's Consolidated Balance Sheet and to close in mid-2021, subject to customary closing conditions, including receipt of regulatory approvals.



THE PNC FINANCIAL SERVICES GROUP, INC.
Cross Reference Index to Fourth Quarter 2020 Financial Supplement (Unaudited)
Financial Supplement Table Reference
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THE PNC FINANCIAL SERVICES GROUP, INC.

Page 1

Table 1: Consolidated Income Statement (Unaudited)
Three months endedYear ended
December 31September 30June 30March 31December 31December 31December 31
In millions, except per share data2020202020202020201920202019
Interest Income
Loans$2,074 $2,116 $2,257 $2,480 $2,573 $8,927 $10,525 
Investment securities442 490 527 582 560 2,041 2,426 
Other60 70 71 138 201 339 811 
Total interest income2,576 2,676 2,855 3,200 3,334 11,307 13,762 
Interest Expense
Deposits53 74 141 375 468 643 1,986 
Borrowed funds99 118 187 314 378 718 1,811 
Total interest expense152 192 328 689 846 1,361 3,797 
Net interest income2,424 2,484 2,527 2,511 2,488 9,946 9,965 
Noninterest Income
Asset management221 215 199 201 216 836 862 
Consumer services387 390 330 377 390 1,484 1,555 
Corporate services 650 479 512 526 499 2,167 1,914 
Residential mortgage99 137 158 210 87 604 368 
Service charges on deposits134 119 79 168 185 500 702 
Other (a)293 457 271 343 456 1,364 1,473 
Total noninterest income1,784 1,797 1,549 1,825 1,833 6,955 6,874 
Total revenue4,208 4,281 4,076 4,336 4,321 16,901 16,839 
Provision For (Recapture of) Credit Losses(254)52 2,463 914 221 3,175 773 
Noninterest Expense
Personnel1,521 1,410 1,373 1,369 1,468 5,673 5,647 
Occupancy215 205 199 207 201 826 834 
Equipment296 292 301 287 348 1,176 1,210 
Marketing64 67 47 58 77 236 301 
Other612 557 595 622 668 2,386 2,582 
Total noninterest expense2,708 2,531 2,515 2,543 2,762 10,297 10,574 
Income (loss) from continuing operations before income taxes and noncontrolling interests1,754 1,698 (902)879 1,338 3,429 5,492 
Income taxes (benefit) from continuing operations298 166 (158)120 195 426 901 
Net income (loss) from continuing operations1,456 1,532 (744)759 1,143 3,003 4,591 
Income from discontinued operations before taxes5,596 181 288 5,777 988 
Income taxes from discontinued operations1,197 25 50 1,222 161 
Net income from discontinued operations4,399 156 238 4,555 827 
Net income1,456 1,532 3,655 915 1,381 7,558 5,418 
Less: Net income attributable to noncontrolling interests14 13 14 41 49 
Preferred stock dividends (b)48 63 55 63 55 229 236 
Preferred stock discount accretion and
redemptions
Net income attributable to common shareholders$1,393 $1,455 $3,592 $844 $1,311 $7,284 $5,129 
Earnings Per Common Share
Basic earnings (loss) from continuing operations$3.26 $3.40 $(1.90)$1.59 $2.44 $6.37 $9.59 
Basic earnings from discontinued operations 10.28 0.37 0.54 10.62 1.84 
Total basic earnings$3.26 $3.40 $8.40 $1.96 $2.98 $16.99 $11.43 
Diluted earnings (loss) from continuing operations$3.26 $3.39 $(1.90)$1.59 $2.43 $6.36 $9.57 
Diluted earnings from discontinued operations10.28 0.36 0.54 10.60 1.82 
Total diluted earnings$3.26 $3.39 $8.40 $1.95 $2.97 $16.96 $11.39 
Average Common Shares Outstanding
Basic425 426 426 429 437 427 447 
Diluted426 426 426 430 438 427 448 
Efficiency64 %59 %62 %59 %64 %61 %63 %
Noninterest income to total revenue42 %42 %38 %42 %42 %41 %41 %
Effective tax rate from continuing operations (c)17.0 %9.8 %17.5 %13.7 %14.6 %12.4 %16.4 %

(a)Includes net gains on sales of securities of $51 million, $32 million, $40 million, $182 million, and $12 million for the quarters ended December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020 and December 31, 2019, respectively. Amounts for the twelve months ended December 31, 2020 and December 31, 2019 were $305 million and $48 million, respectively.
(b)Dividends are payable quarterly other than Series O, Series R and Series S preferred stock, which are payable semiannually, with the Series O payable in different quarters than the Series R and Series S preferred stock.
(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)
December 31September 30June 30March 31December 31
In millions, except par value20202020202020202019
Assets
Cash and due from banks$7,017 $6,629 $6,338 $7,493 $5,061 
Interest-earning deposits with banks (a)85,173 70,959 50,233 19,986 23,413 
Loans held for sale (b)1,597 1,787 1,443 1,693 1,083 
Asset held for sale (c)8,511 8,558 
Investment securities – available for sale 87,358 89,747 97,052 89,077 69,163 
Investment securities – held to maturity1,441 1,438 1,441 1,469 17,661 
Loans (b)241,928 249,279 258,236 264,643 239,843 
Allowance for loan and lease losses (d)(5,361)(5,751)(5,928)(3,944)(2,742)
Net loans236,567 243,528 252,308 260,699 237,101 
Equity investments6,052 4,938 4,943 4,694 5,176 
Mortgage servicing rights1,242 1,113 1,067 1,082 1,644 
Goodwill9,233 9,233 9,233 9,233 9,233 
Other (b) 30,999 32,445 34,920 41,556 32,202 
Total assets$466,679 $461,817 $458,978 $445,493 $410,295 
Liabilities
Deposits
Noninterest-bearing$112,637 $107,281 $99,458 $81,614 $72,779 
Interest-bearing252,708 247,798 246,539 223,590 215,761 
Total deposits365,345 355,079 345,997 305,204 288,540 
Borrowed funds
Federal Home Loan Bank borrowings3,500 5,500 8,500 23,491 16,341 
Bank notes and senior debt24,271 26,839 27,704 31,438 29,010 
Subordinated debt6,403 6,465 6,500 6,475 6,134 
Other (b)3,021 3,306 4,322 11,995 8,778 
Total borrowed funds37,195 42,110 47,026 73,399 60,263 
Allowance for unfunded lending related commitments (d)584 689 662 450 318 
Accrued expenses and other liabilities9,514 10,629 12,345 17,150 11,831 
Total liabilities412,638 408,507 406,030 396,203 360,952 
Equity
Preferred stock (e)
Common stock - $5 par value
Authorized 800 shares, issued 543 shares2,713 2,712 2,712 2,712 2,712 
Capital surplus15,884 15,836 16,284 16,288 16,369 
Retained earnings46,848 45,947 44,986 41,885 42,215 
Accumulated other comprehensive income2,770 2,997 3,069 2,518 799 
Common stock held in treasury at cost:119, 118, 117, 118 and 109 shares(14,205)(14,216)(14,128)(14,140)(12,781)
Total shareholders’ equity54,010 53,276 52,923 49,263 49,314 
Noncontrolling interests31 34 25 27 29 
Total equity54,041 53,310 52,948 49,290 49,343 
Total liabilities and equity$466,679 $461,817 $458,978 $445,493 $410,295 

(a)Amounts include balances held with the Federal Reserve Bank of Cleveland of $84.9 billion, $70.6 billion, $50.0 billion, $19.6 billion and $23.2 billion as of December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020 and December 31, 2019, respectively.
(b)Amounts include assets and liabilities for which PNC has elected the fair value option. Our third quarter 2020 Form 10-Q included, and our 2020 Form 10-K will include, additional information regarding these items.
(c)Represents our held for sale investment in BlackRock. In the second quarter of 2020, PNC divested its entire holding in BlackRock. Prior period BlackRock investment balances have been reclassified to the Asset held for sale line in accordance with Accounting Standards Codification 205-20, Presentation of Financial Statements - Discontinued Operations. Our second and third quarter 2020 Form 10-Qs included, and our 2020 Form 10-K will include additional information.
(d)Amounts as of December 31, 2020, September 30, 2020, June 30, 2020 and March 31, 2020 reflect the impact of adopting Accounting Standards Update 2016-13, Financial Instruments - Credit Losses, which is commonly referred to as the Current Expected Credit Losses (CECL) standard and our transition from an incurred loss methodology for these reserves to an expected credit loss methodology. Our 2019 Form 10-K and 2020 Form 10-Qs included, and our 2020 Form 10-K will include, additional information related to our adoption of this standard.
(e)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)
Three months endedYear ended
December 31September 30June 30March 31December 31December 31December 31
In millions2020202020202020201920202019
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency$48,036 $52,215 $52,500 $49,636 $33,937 $50,594 $31,526 
Non-agency1,337 1,4371,5291,6171,5821,4801,746 
Commercial mortgage-backed6,5686,9277,2326,7346,0546,8655,676 
Asset-backed5,0175,0335,3095,0035,0595,0905,199 
U.S. Treasury and government agencies18,78318,72415,45715,93815,96617,23417,642 
Other4,5614,7234,9524,0242,8494,5643,200 
Total securities available for sale84,30289,05986,97982,95265,44785,82764,989
Securities held to maturity
Residential mortgage-backed14,943 15,421 
Commercial mortgage-backed498553 
Asset-backed22515418120 
U.S. Treasury and government agencies793788783779774786767 
Other6506556466401,7946481,816 
Total securities held to maturity1,4431,4431,4511,47018,0631,45218,677
Total investment securities85,74590,50288,43084,42283,51087,27983,666
Loans
Commercial and industrial134,944139,795153,595128,723124,876139,254123,524 
Commercial real estate28,99129,08128,70728,27528,67028,76528,526 
Equipment lease financing6,3806,7717,0357,0667,1996,8127,255 
Consumer52,87254,69256,48557,68056,76555,42355,671 
Residential real estate22,63822,75322,29221,82821,34122,37920,040 
Total loans245,825253,092268,114243,572238,851252,633235,016
Interest-earning deposits with banks (b)76,37460,32734,60017,56923,31647,33316,878 
Other interest-earning assets8,1349,75210,8679,46811,3719,55312,425 
Total interest-earning assets416,078413,673402,011355,031357,048396,798347,985
Noninterest-earning assets48,90148,46655,30257,40554,37152,49752,350 
Total assets$464,979 $462,139 $457,313 $412,436 $411,419 $449,295 $400,335 
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market$62,621 $63,598 $61,346 $53,287 $56,209 $60,229 $55,505 
Demand88,02687,22682,88170,93169,49682,29565,729 
Savings79,43077,47975,34569,97766,82775,57462,938 
Time deposits19,44820,24821,87321,14121,60020,67320,416 
Total interest-bearing deposits249,525248,551241,445215,336214,132238,771204,588
Borrowed funds
Federal Home Loan Bank borrowings4,7617,19612,55913,44018,9449,47022,253 
Bank notes and senior debt24,02225,85828,29829,98827,40327,03026,781 
Subordinated debt5,9365,9365,9375,9345,7605,9365,588 
Other3,4334,3546,4357,8267,9265,5026,906 
Total borrowed funds38,15243,34453,22957,18860,03347,93861,528
Total interest-bearing liabilities287,677291,895294,674272,524274,165286,709266,116
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits109,878101,93193,77674,39673,62695,05572,212 
Accrued expenses and other liabilities14,34815,34116,98916,43714,54115,77413,371 
Equity53,07652,97251,87449,07949,08751,75748,636 
Total liabilities and equity$464,979 $462,139 $457,313 $412,436 $411,419 $449,295 $400,335 

(a)Calculated using average daily balances.
(b)Amounts include average balances held with the Federal Reserve Bank of Cleveland of $76.1 billion, $60.0 billion, $34.2 billion, $17.3 billion and $23.0 billion for the three months ended December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020 and December 31, 2019, respectively. Amounts include $47.0 billion and $16.6 billion for the twelve months ended December 31, 2020 and December 31, 2019, respectively.


THE PNC FINANCIAL SERVICES GROUP, INC.

Page 4
Table 4: Details of Net Interest Margin (Unaudited)
Three months endedYear ended
December 31September 30June 30March 31December 31December 31December 31
2020202020202020201920202019
Average yields/rates (a)
Yield on interest-earning assets
Investment securities
Securities available for sale
Residential mortgage-backed
Agency1.81 %2.03 %2.29 %2.63 %2.48 %2.19 %2.75 %
Non-agency7.15 %7.26 %7.13 %7.87 %8.09 %7.36 %8.08 %
Commercial mortgage-backed2.66 %2.50 %2.59 %2.95 %2.30 %2.67 %2.85 %
Asset-backed2.04 %2.44 %2.60 %3.05 %3.26 %2.53 %3.31 %
U.S. Treasury and government agencies1.77 %1.64 %1.77 %2.29 %2.31 %1.88 %2.47 %
Other3.45 %3.39 %3.47 %3.69 %3.36 %3.51 %3.34 %
Total securities available for sale2.05 %2.16 %2.39 %2.77 %2.65 %2.35 %2.90 %
Securities held to maturity
Residential mortgage-backed2.63 %2.84 %
Commercial mortgage-backed4.44 %3.80 %
Asset-backed2.38 %2.77 %3.02 %4.17 %
U.S. Treasury and government agencies2.88 %2.86 %2.84 %2.84 %2.86 %2.80 %2.87 %
Other4.20 %4.20 %4.27 %4.48 %4.47 %4.32 %4.41 %
Total securities held to maturity3.47 %3.47 %3.47 %3.56 %2.87 %3.44 %3.03 %
Total investment securities2.08 %2.18 %2.41 %2.78 %2.70 %2.36 %2.93 %
Loans
Commercial and industrial2.87 %2.82 %2.83 %3.62 %3.88 %3.07 %4.17 %
Commercial real estate2.63 %2.65 %2.84 %3.64 %3.89 %2.98 %4.33 %
Equipment lease financing3.90 %3.80 %3.82 %3.93 %3.87 %3.86 %3.93 %
Consumer4.74 %4.69 %4.86 %5.38 %5.45 %4.93 %5.54 %
Residential real estate3.69 %3.74 %3.86 %3.96 %4.10 %3.81 %4.21 %
Total loans3.35 %3.32 %3.37 %4.08 %4.27 %3.55 %4.51 %
Interest-earning deposits with banks0.10 %0.10 %0.10 %1.27 %1.66 %0.21 %2.09 %
Other interest-earning assets1.99 %2.23 %2.26 %3.51 %3.65 %2.50 %3.69 %
Total yield on interest-earning assets2.46 %2.57 %2.85 %3.62 %3.71 %2.87 %3.98 %
Rate on interest-bearing liabilities
Interest-bearing deposits
Money market0.05 %0.07 %0.15 %0.72 %0.93 %0.23 %1.10 %
Demand0.04 %0.05 %0.08 %0.41 %0.51 %0.13 %0.54 %
Savings0.08 %0.11 %0.31 %0.79 %0.97 %0.31 %1.11 %
Time deposits0.41 %0.58 %0.80 %1.34 %1.52 %0.79 %1.60 %
Total interest-bearing deposits0.08 %0.12 %0.23 %0.70 %0.87 %0.27 %0.97 %
Borrowed funds
Federal Home Loan Bank borrowings0.40 %0.47 %1.00 %1.69 %2.11 %1.09 %2.56 %
Bank notes and senior debt1.00 %1.08 %1.56 %2.41 %2.77 %1.58 %3.24 %
Subordinated debt1.38 %1.51 %1.91 %2.73 %3.06 %1.89 %3.83 %
Other
1.39 %1.31 %0.92 %1.69 %1.89 %1.36 %2.30 %
Total borrowed funds1.02 %1.06 %1.39 %2.18 %2.47 %1.50 %2.94 %
Total rate on interest-bearing liabilities0.21 %0.26 %0.44 %1.00 %1.21 %0.47 %1.43 %
Interest rate spread2.25 %2.31 %2.41 %2.62 %2.50 %2.40 %2.55 %
Benefit from use of noninterest bearing sources (b)0.07 0.08 0.11 0.22 0.28 0.13 0.34 
Net interest margin2.32 %2.39 %2.52 %2.84 %2.78 %2.53 %2.89 %

(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 generally accepted accounting principles (GAAP) in the Consolidated Income Statement. The taxable-equivalent adjustments to net interest income for the three months ended December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020 and December 31, 2019 were $17 million, $17 million, $19 million, $22 million and $23 million, respectively. The taxable-equivalent adjustments to net interest income for the years ended December 31, 2020 and December 31, 2019 were $75 million and $103 million, respectively.
(b)Represents the positive effects of investing noninterest-bearing sources in interest-earning assets.


THE PNC FINANCIAL SERVICES GROUP, INC.

Page 5
Table 5: Per Share Related Information (Unaudited)
Three months endedYear ended
December 31September 30June 30March 31December 31December 31December 31
In millions, except per share data2020202020202020201920202019
Basic
Net income (loss) from continuing operations$1,456 $1,532 $(744)$759 $1,143 $3,003 $4,591 
Less:
Net income attributable to noncontrolling
interests
14 13 14 41 49 
Preferred stock dividends48 63 55 63 55 229 236 
Preferred stock discount accretion and
redemptions
Net income (loss) from continuing operations
attributable to common shareholders
1,393 1,455 (807)688 1,073 2,729 4,302 
Less: Dividends and undistributed earnings
allocated to nonvested restricted shares
13 18 
Net income (loss) from continuing operations
attributable to basic common shareholders
$1,387 $1,447 $(808)$685 $1,068 $2,716 $4,284 
Net income from discontinued operations
attributable to common shareholders
$4,399 $156 $238 $4,555 $827 
Less: Undistributed earnings allocated to
nonvested restricted shares
 21 22 
Net income from discontinued operations
attributable to basic common shareholders
 $4,378 $155 $237 $4,533 $824 
Basic weighted-average common shares
outstanding
425 426 426 429 437 427 447 
Basic earnings (loss) per common share from continuing
operations (a)
$3.26 $3.40 $(1.90)$1.59 $2.44 $6.37 $9.59 
Basic earnings per common share from
discontinued operations (a)
$10.28 $0.37 $0.54 $10.62 $1.84 
Basic earnings per common share$3.26 $3.40 $8.40 $1.96 $2.98 $16.99 $11.43 
Diluted
Net income (loss) from continuing operations attributable
to diluted common shareholders
$1,387 $1,447 $(808)$685 $1,068 $2,716 $4,284 
Net income from discontinued operations
attributable to basic common shareholders
 $4,378 $155 $237 $4,533 $824 
Less: Impact of earnings per share dilution from
discontinued operations
 10 
Net income from discontinued operations
attributable to diluted common shareholders
 $4,377 $154 $234 $4,531 $814 
Basic weighted-average common shares
outstanding
425 426 426 429 437 427 447 
Dilutive potential common shares1 
Diluted weighted-average common shares
outstanding
426 426 426 430 438 427 448 
Diluted earnings (loss) per common share from
continuing operations (a)
$3.26 $3.39 $(1.90)$1.59 $2.43 $6.36 $9.57 
Diluted earnings per common share from
discontinued operations (a)
$10.28 $0.36 $0.54 $10.60 $1.82 
Diluted earnings per common share $3.26 $3.39 $8.40 $1.95 $2.97 $16.96 $11.39 

(a)Dividends are payable quarterly other than the Series O, Series R and Series S preferred stock, which are payable semiannually, with the Series O payable in different quarters than the Series R and Series S preferred stock.




THE PNC FINANCIAL SERVICES GROUP, INC.

Page 6
Table 6: Details of Loans (Unaudited)
December 31September 30June 30March 31December 31
In millions20202020202020202019
Commercial
Commercial and industrial
Manufacturing$20,712 $22,551 $25,590 $27,225 $21,540 
Retail/wholesale trade20,21820,28721,74724,40821,565
Service providers19,41920,26021,34719,41116,112
Real estate related (a)13,36914,04014,63414,84312,346
Financial services14,90915,00513,59613,47311,318
Health care8,9879,36810,1099,2388,035
Transportation and warehousing7,0957,2957,7718,1607,474
Other industries27,36428,38129,54132,37326,947
Total commercial and industrial132,073137,187144,335149,131125,337
Commercial real estate28,71629,02828,76328,54428,110
Equipment lease financing6,4146,4797,0977,0617,155
Total commercial167,203172,694180,195184,736160,602
Consumer
Home equity24,08824,53924,87925,08125,085
Residential real estate22,56022,88622,46922,25021,821
Automobile14,21814,97716,15717,19416,754
Credit card6,2156,3036,5757,1327,308
Education2,9463,0513,1323,2473,336
Other consumer4,6984,8294,8295,0034,937
Total consumer74,72576,58578,04179,90779,241
Total loans$241,928 $249,279 $258,236 $264,643 $239,843 

(a) Represents loans to customers in the real estate and construction industries.


THE PNC FINANCIAL SERVICES GROUP, INC.

Page 7
Allowance for Credit Losses (Unaudited)

Table 7: Change in Allowance for Loan and Lease Losses
Three months endedYear ended
December 31September 30June 30March 31December 31December 31December 31
Dollars in millions2020202020202020201920202019
Allowance for loan and lease losses
Beginning balance$5,751 $5,928 $3,944 $2,742 $2,738 $2,742 $2,629 
Adoption of ASU 2016-03 (a)463 463 
Gross charge-offs:
Commercial and industrial(133)(59)(112)(78)(67)(382)(183)
Commercial real estate(1)(1)(2)(2)(18)
Equipment lease financing(4)(4)(10)(5)(9)(23)(15)
Home equity(11)(12)(8)(11)(16)(42)(68)
Residential real estate(6)(2)(2)(4)(10)(9)
Automobile(55)(57)(69)(84)(78)(265)(261)
Credit card(72)(74)(76)(78)(70)(300)(263)
Education(3)(3)(4)(6)(6)(16)(26)
Other consumer(42)(35)(35)(40)(39)(152)(131)
Total gross charge-offs(327)(247)(314)(304)(291)(1,192)(974)
Recoveries:
Commercial and industrial23 21 13 18 14 75 59 
Commercial real estate11 
Equipment lease financing10 
Home equity17 15 15 14 18 61 74 
Residential real estate16 14 
Automobile33 31 29 35 29 128 114 
Credit card35 27 
Education
Other consumer18 17 
Total recoveries98 92 78 92 82 360 332 
Net (charge-offs) / recoveries:
Commercial and industrial(110)(38)(99)(60)(53)(307)(124)
Commercial real estate(7)
Equipment lease financing(1)(1)(8)(3)(7)(13)(7)
Home equity19 
Residential real estate(2)(1)
Automobile(22)(26)(40)(49)(49)(137)(147)
Credit card(63)(65)(67)(70)(64)(265)(236)
Education(1)(1)(2)(4)(4)(8)(18)
Other consumer(38)(30)(31)(35)(34)(134)(114)
Total net (charge-offs)(229)(155)(236)(212)(209)(832)(642)
Provision for (recapture of) credit losses (b)(164)(23)2,220 952 221 2,985 773 
Net (increase) in allowance for unfunded
loan commitments and letters of credit
(14)(33)
Other(1)15 
Ending balance$5,361 $5,751 $5,928 $3,944 $2,742 $5,361 $2,742 
Supplemental Information
Net charge-offs
Commercial net charge-offs$(109)$(38)$(107)$(59)$(59)$(313)$(138)
Consumer net charge-offs(120)(117)(129)(153)(150)(519)(504)
Total net charge-offs$(229)$(155)$(236)$(212)$(209)$(832)$(642)
Net charge-offs to average loans (c)0.37 %0.24 %0.35 %0.35 %0.35 %0.33 %0.27 %
Commercial0.25 %0.09 %0.23 %0.14 %0.15 %0.18 %0.09 %
Consumer0.63 %0.60 %0.66 %0.77 %0.76 %0.67 %0.67 %
(a)    Represents the impact of adopting ASU 2016-13, Financial Instruments - Credit Losses on January 1, 2020, and our transition from an incurred loss methodology for our reserves to an expected credit loss methodology. Our 2019 Form 10-K and our 2020 Form 10-Qs included, and 2020 Form 10-K will include, additional information related to our adoption of the CECL standard.
(b)    See Table 8 for the components of the Provision for (recapture of) credit losses under CECL being reported on the Consolidated Income Statement.
(c)    Three month period percentages are annualized.


THE PNC FINANCIAL SERVICES GROUP, INC.

Page 8
Allowance for Credit Losses (Unaudited) (Continued)

Table 8: Components of the Provision for (Recapture of) Credit Losses Under CECL
Three months endedYear ended
December 31September 30June 30March 31December 31
In millions20202020202020202020
Provision for (recapture of) credit losses
Loans and leases$(164)$(23)$2,220 $952 $2,985 
Unfunded lending related commitments(105)27 212 (47)87 
Investment securities 11 39 30 80 
Other financial assets23 
Total provision for (recapture of) credit losses$(254)$52 $2,463 $914 $3,175 

Table 9: Allowance for Credit Losses by Loan Class (a)
December 31, 2020September 30, 2020December 31, 2019

Dollars in millions
Allowance AmountTotal Loans% of Total LoansAllowance AmountTotal Loans% of Total LoansAllowance AmountTotal Loans% of Total Loans
Allowance for loan and lease losses
Commercial
Commercial and industrial$2,300 $132,073 1.74 %$2,735 $137,187 1.99 %$1,489 $125,337 1.19 %
Commercial real estate880 28,716 3.06 %630 29,028 2.17 %278 28,110 0.99 %
Equipment lease financing157 6,414 2.45 %163 6,479 2.52 %45 7,155 0.63 %
Total commercial3,337 167,203 2.00 %3,528 172,694 2.04 %1,812 160,602 1.13 %
Consumer
Home equity313 24,088 1.30 %349 24,539 1.42 %87 25,085 0.35 %
Residential real estate28 22,560 0.12 %28 22,886 0.12 %258 21,821 1.18 %
Automobile379 14,218 2.67 %404 14,977 2.70 %160 16,754 0.95 %
Credit card816 6,215 13.13 %891 6,303 14.14 %288 7,308 3.94 %
Education129 2,946 4.38 %136 3,051 4.46 %17 3,336 0.51 %
Other consumer359 4,698 7.64 %415 4,829 8.59 %120 4,937 2.43 %
Total consumer2,024 74,725 2.71 %2,223 76,585 2.90 %930 79,241 1.17 %
Total
5,361 $241,928 2.22 %5,751 $249,279 2.31 %2,742 $239,843 1.14 %
Allowance for unfunded lending related commitments
584 689 318 
Allowance for credit losses
$5,945 $6,440 $3,060 
Supplemental Information
Allowance for credit losses to total loans
2.46 %2.58 %1.28 %
Commercial2.29 %2.38 %1.33 %
Consumer2.84 %3.04 %1.18 %

(a)    Excludes allowances for investment securities and other financial assets, which together totaled $109 million and $98 million at December 31, 2020 and September 30, 2020,
    respectively.


THE PNC FINANCIAL SERVICES GROUP, INC.

Page 9
Details of Nonperforming Assets (Unaudited)

Table 10: Nonperforming Assets by Type
December 31September 30June 30March 31December 31
Dollars in millions20202020202020202019
Nonperforming loans, including TDRs
Commercial
Commercial and industrial
Retail/wholesale trade$61 $90 $117 $121 $74 
Manufacturing81 80 58 79 102 
Service providers90 69 57 63 53 
Real estate related (a)95 140 158 25 24 
Health care20 20 19 14 17 
Transportation and warehousing20 14 20 23 18 
Other industries299 264 264 169 137 
Total commercial and industrial666 677 693 494 425 
Commercial real estate224 217 43 42 44 
Equipment lease financing33 21 22 30 32 
Total commercial923 915 758 566 501 
Consumer (b)
Home equity645 639 636 617 669 
Residential real estate528 339 305 292 315 
Automobile175 171 156 154 135 
Credit card13 15 10 11 
Other consumer
Total consumer1,363 1,170 1,118 1,078 1,134 
Total nonperforming loans (c) (d)2,286 2,085 1,876 1,644 1,635 
OREO and foreclosed assets51 67 79 111 117 
Total nonperforming assets$2,337 $2,152 $1,955 $1,755 $1,752 
Nonperforming loans to total loans0.94 %0.84 %0.73 %0.62 %0.68 %
Nonperforming assets to total loans, OREO and foreclosed assets0.97 %0.86 %0.76 %0.66 %0.73 %
Nonperforming assets to total assets0.50 %0.47 %0.43 %0.39 %0.43 %
Allowance for loan and lease losses to nonperforming loans (e)235 %276 %316 %240 %168 %
(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. Amounts in 2019 also excluded purchased impaired loans.
(d)In connection with the adoption of the CECL standard, nonperforming loan amounts in 2020 include purchased credit deteriorated loans. Our 2019 Form 10-K and 2020 Form 10-Qs included, and our 2020 Form 10-K will include, additional information related to our adoption of this standard.
(e)Ratios in 2020 reflect the transition impact on our allowance for loan and lease losses from the adoption of the CECL standard along with the increases in reserves during 2020 due to the significant economic impact of COVID-19 and loan growth.






THE PNC FINANCIAL SERVICES GROUP, INC.

Page 10
Details of Nonperforming Assets (Unaudited) (Continued)

Table 11: Change in Nonperforming Assets
October 1, 2020 -July 1, 2020 -April 1, 2020 -January 1, 2020 -October 1, 2019 -
In millionsDecember 31, 2020September 30, 2020June 30, 2020March 31, 2020December 31, 2019
Beginning balance$2,152 $1,955 $1,755 $1,752 $1,847 
New nonperforming assets586 512 458 391 357 
Charge-offs and valuation adjustments(97)(75)(104)(145)(218)
Principal activity, including paydowns and payoffs(185)(175)(85)(158)(157)
Asset sales and transfers to loans held for sale(14)(20)(28)(20)(21)
Returned to performing status(105)(45)(41)(65)(56)
Ending balance$2,337 $2,152 $1,955 $1,755 $1,752 


Table 12: Largest Individual Nonperforming Assets (a)
December 31, 2020 - Dollars in millions
RankingOutstandingsIndustry
1$141 Real Estate and Rental and Leasing
246 Real Estate and Rental and Leasing
337 Real Estate and Rental and Leasing
433 Real Estate and Rental and Leasing
532 Mining, Quarrying, and Oil and Gas Extraction
631 Wholesale Trade
731 Real Estate and Rental and Leasing
830 Information
926 Manufacturing
1026 Mining, Quarrying, and Oil and Gas Extraction
Total$433 
As a percent of total nonperforming assets19%

(a)    Amounts shown are not net of related allowance for loan and lease losses, if applicable.


THE PNC FINANCIAL SERVICES GROUP, INC.

Page 11
Accruing Loans Past Due (Unaudited)         

Pursuant to the interagency guidance issued in April 2020 and in connection with the credit reporting rules from the U.S. Coronavirus Aid, Relief and Economic Security Act (CARES Act), the delinquency status of loans modified due to COVID-19 related hardships are reported as of December 31, 2020, September 30, 2020 and June 30, 2020 in alignment with the rules set forth for banks to report delinquency status to the credit agencies. These rules require that COVID-19 related loan modifications be reported as follows:
if current at the time of modification, the loan remains current throughout the modification period,
if delinquent at the time of modification and the borrower was not made current as part of the modification, the loan maintains its reported as delinquent status during the modification period, or
if delinquent at the time of modification and the borrower was made current as part of the modification or became current during the modification period, the loan is reported as current.
As a result, certain loans modified due to COVID-19 related hardships are not being reported as past due as of December 31, 2020, September 30, 2020 and June 30, 2020 based on the contractual terms of the loan, even where borrowers may not be making payments on their loans during the modification period. Our second and third quarter 2020 Form 10-Qs included, and our 2020 Form 10-K will include, additional information on COVID-19 related loan modifications.

Table 13: Accruing Loans Past Due 30 to 59 Days (a) (b)
AmountPercent of Total Outstandings
Dec. 31Sept. 30Jun. 30Mar. 31Dec. 31Dec. 31Sept. 30Jun. 30Mar. 31Dec. 31
Dollars in millions2020202020202020201920202020202020202019
Commercial and industrial$106 $56 $49 $97 $102 0.08 %0.04 %0.03 %0.07 %0.08 %
Commercial real estate51 0.02 %0.02 %0.18 %0.02 %0.01 %
Equipment lease financing31 42 49 0.48 %0.11 %0.11 %0.59 %0.68 %
Home equity50 48 70 65 58 0.21 %0.20 %0.28 %0.26 %0.23 %
Residential real estate
Non government insured89 99 135 121 90 0.39 %0.43 %0.60 %0.54 %0.41 %
Government insured92 89 63 52 50 0.41 %0.39 %0.28 %0.23 %0.23 %
Automobile134 116 105 177 178 0.94 %0.77 %0.65 %1.03 %1.06 %
Credit card43 44 53 59 60 0.69 %0.70 %0.81 %0.83 %0.82 %
Education
Non government insured
0.17 %0.20 %0.10 %0.22 %0.21 %
Government insured
50 51 36 45 48 1.70 %1.67 %1.15 %1.39 %1.44 %
Other consumer14 17 17 17 15 0.30 %0.35 %0.35 %0.34 %0.30 %
Total$620 $539 $590 $688 $661 0.26 %0.22 %0.23 %0.26 %0.28 %
Table 14: Accruing Loans Past Due 60 to 89 Days (a) (b)
AmountPercent of Total Outstandings
Dec. 31Sept. 30Jun. 30Mar. 31Dec. 31Dec. 31Sept. 30Jun. 30Mar. 31Dec. 31
Dollars in millions2020202020202020201920202020202020202019
Commercial and industrial$26 $37 $28 $22 $30 0.02 %0.03 %0.02 %0.01 %0.02 %
Commercial real estate0.00 %0.02 %0.01 %0.00 %0.00 %
Equipment lease financing0.08 %0.06 %0.13 %0.03 %0.07 %
Home equity21 22 27 28 24 0.09 %0.09 %0.11 %0.11 %0.10 %
Residential real estate
Non government insured16 22 34 30 16 0.07 %0.10 %0.15 %0.13 %0.07 %
Government insured62 58 59 52 53 0.27 %0.25 %0.26 %0.23 %0.24 %
Automobile34 32 34 49 47 0.24 %0.21 %0.21 %0.28 %0.28 %
Credit card30 33 38 37 37 0.48 %0.52 %0.58 %0.52 %0.51 %
Education
Non government insured
0.07 %0.07 %0.06 %0.12 %0.09 %
Government insured
27 24 21 26 31 0.92 %0.79 %0.67 %0.80 %0.93 %
Other consumer10 11 10 11 0.21 %0.23 %0.17 %0.20 %0.22 %
Total$234 $251 $264 $261 $258 0.10 %0.10 %0.10 %0.10 %0.11 %



THE PNC FINANCIAL SERVICES GROUP, INC.

Page 12
Accruing Loans Past Due (Unaudited) (Continued)

Table 15: Accruing Loans Past Due 90 Days or More (a) (b)
AmountPercent of Total Outstandings
Dec. 31Sept. 30Jun. 30Mar. 31Dec. 31Dec. 31Sept. 30Jun. 30Mar. 31Dec. 31
Dollars in millions2020202020202020201920202020202020202019
Commercial and industrial$30 $36 $34 $51 $85 0.02 %0.03 %0.02 %0.03 %0.07 %
Residential real estate
Non government insured27 28 19 18 14 0.12 %0.12 %0.08 %0.08 %0.06 %
Government insured292 241 245 282 301 1.29 %1.05 %1.09 %1.27 %1.38 %
Automobile12 12 19 19 18 0.08 %0.08 %0.12 %0.11 %0.11 %
Credit card60 60 61 70 67 0.97 %0.95 %0.93 %0.98 %0.92 %
Education
Non government insured
0.07 %0.03 %0.03 %0.06 %0.06 %
Government insured
75 62 65 82 89 2.55 %2.03 %2.08 %2.53 %2.67 %
Other consumer11 12 10 0.23 %0.17 %0.25 %0.20 %0.18 %
Total$509 $448 $456 $534 $585 0.21 %0.18 %0.18 %0.20 %0.24 %

(a) Excludes loans held for sale, amounts in 2019 also excluded purchased impaired loans.
(b) In connection with the adoption of the CECL standard, accruing loans past due amounts in 2020 include purchased credit deteriorated loans. Our 2019 Form 10-K and 2020 Form 10-Qs included, and our 2020 Form 10-K will include, additional information related to our adoption of this standard.


THE PNC FINANCIAL SERVICES GROUP, INC.

Page 13
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. Our customers are serviced through our branch network, ATMs, call centers, online banking and mobile channels. The branch network is located primarily in markets across the Mid-Atlantic, Midwest and Southeast. In 2018, Retail Banking launched its national expansion strategy designed to grow customers with digitally-led banking and a thin branch network in markets outside of our existing retail branch network. Deposit products include checking, savings and money market accounts and certificates of deposit. Lending products include residential mortgages, home equity loans and lines of credit, auto loans, credit cards, education loans and 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. Brokerage, investment management and cash management products and services include managed, education, retirement and trust accounts.

Corporate & Institutional Banking provides lending, treasury management, and capital markets-related 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 payables, receivables, deposit and account services, liquidity and investments, and online and mobile banking products and services to our clients. Capital markets-related products and services include foreign exchange, derivatives, securities underwriting, loan syndications, mergers and acquisitions advisory and equity capital markets advisory related services. 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 personal wealth management for high net worth and ultra high net worth clients and institutional asset management. The Asset Management group is comprised of three distinct operating units:
Wealth management provides products and services to individuals and their families including investment and retirement planning, customized investment management, private banking, and trust management and administration for individuals and their families.
Our Hawthorn unit provides multi-generational family planning including estate, financial, tax planning, fiduciary, investment management and consulting, private banking, personal administrative services, asset custody and customized performance reporting to ultra high net worth clients.
Institutional asset management provides outsourced chief investment officer, custody, private real estate, cash and fixed income client solutions, and fiduciary retirement advisory services to institutional clients including corporations, healthcare systems, insurance companies, unions, municipalities and non-profits.

Table 16: Period End Employees
December 31September 30June 30March 31December 31
20202020202020202019
Full-time employees
Retail Banking27,621 27,808 29,051 28,737 28,270 
Other full-time employees21,928 21,997 21,752 21,776 21,747 
Total full-time employees49,549 49,805 50,803 50,513 50,017 
Part-time employees
Retail Banking1,611 1,593 1,854 1,780 1,759 
Other part-time employees97 104 476 129 142 
Total part-time employees1,708 1,697 2,330 1,909 1,901 
Total51,257 51,502 53,133 52,422 51,918 



THE PNC FINANCIAL SERVICES GROUP, INC.

Page 14
Table 17: Summary of Business Segment Income and Revenue (Unaudited) (a)
Three months endedYear ended
December 31September 30June 30March 31December 31December 31December 31
In millions2020202020202020201920202019
Income
Retail Banking$336 $530 $(223)$201 $277 $844 $1,213 
Corporate & Institutional Banking992 670 (358)370 649 1,674 2,448 
Asset Management Group82 91 28 54 91 255 262 
Other46 241 (191)134 126 230 668 
Net income (loss) from continuing
operations
$1,456 $1,532 $(744)$759 $1,143 $3,003 $4,591 
  
Revenue
Retail Banking$1,853 $2,056 $1,975 $2,244 $2,054 $8,128 $8,168 
Corporate & Institutional Banking1,913 1,748 1,790 1,660 1,615 7,111 6,251 
Asset Management Group316 310 293 292 352 1,211 1,279 
Other126 167 18 140 300 451 1,141 
Total revenue$4,208 $4,281 $4,076 $4,336 $4,321 $16,901 $16,839 

(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.



THE PNC FINANCIAL SERVICES GROUP, INC.

Page 15
Table 18: Retail Banking (Unaudited) (a)
Three months endedYear ended
December 31September 30June 30March 31December 31December 31December 31
Dollars in millions2020202020202020201920202019
Income Statement
Net interest income$1,380 $1,383 $1,390 $1,456 $1,402 $5,609 $5,520 
Noninterest income473 673 585 788 652 2,519 2,648 
Total revenue1,853 2,056 1,975 2,244 2,054 8,128 8,168 
Provision for (recapture of) credit losses(81)(157)761 445 161 968 517 
Noninterest expense1,482 1,512 1,497 1,528 1,516 6,019 6,011 
Pretax earnings (loss)452 701 (283)271 377 1,141 1,640 
Income taxes (benefit)105 162 (63)62 86 266 377 
Noncontrolling interest 11 14 31 50 
Earnings (loss)$336 $530 $(223)$201 $277 $844 $1,213 
Average Balance Sheet
Loans held for sale$672 $700 $829 $779 $747 $745 $627 
Loans
Consumer
Home equity$22,366 $22,647 $22,790 $22,736 $22,590 $22,633 $22,657 
Residential real estate 18,042 18,435 18,244 17,964 17,352 18,171 16,196 
Automobile14,536 15,573 16,688 17,096 16,427 15,968 15,510 
Credit card6,218 6,408 6,690 7,207 6,985 6,629 6,550 
Education3,027 3,119 3,218 3,343 3,428 3,176 3,611 
Other consumer2,086 2,262 2,454 2,533 2,418 2,334 2,244 
Total consumer 66,275 68,444 70,084 70,879 69,200 68,911 66,768 
Commercial 13,391 13,356 13,612 10,524 10,323 12,573 10,410 
Total loans$79,666 $81,800 $83,696 $81,403 $79,523 $81,484 $77,178 
Total assets$94,303 $98,731 $102,103 $97,062 $94,967 $97,643 $92,959 
Deposits
Noninterest-bearing demand$43,818 $43,752 $39,134 $32,225 $32,674 $39,754 $31,675 
Interest-bearing demand50,702 49,274 47,339 42,865 41,689 47,557 42,077 
Money market24,112 23,816 22,942 22,866 23,927 23,436 25,317 
Savings72,041 70,236 67,947 62,781 59,877 68,267 56,722 
Certificates of deposit10,156 10,852 11,661 12,233 12,598 11,222 12,613 
Total deposits$200,829 $197,930 $189,023 $172,970 $170,765 $190,236 $168,404 
Performance Ratios
Return on average assets1.41 %2.13 %(0.88)%0.84 %1.16 %0.86 %1.30 %
Noninterest income to total revenue26 %33 %30 %35 %32 %31 %32 %
Efficiency80 %74 %76 %68 %74 %74 %74 %
(a)See note (a) on page 14.


THE PNC FINANCIAL SERVICES GROUP, INC.

Page 16
Retail Banking (Unaudited) (Continued)
Three months endedYear ended
December 31September 30June 30March 31December 31December 31December 31
Dollars in millions, except as noted2020202020202020201920202019
Supplemental Noninterest Income
Information
Consumer services$369 $371 $315 $372 $382 $1,427 $1,530 
Residential mortgage$99 $137 $158 $210 $87 $604 $368 
Service charges on deposits$133 $118 $80 $166 $183 $497 $687 
Residential Mortgage Information
Residential mortgage servicing statistics (in billions, except as noted) (a)
Serviced portfolio balance (b)$121 $119 $122 $118 $120 
Serviced portfolio acquisitions$12 $$11 $$$33 $12 
MSR asset value (b)$0.7 $0.6 $0.6 $0.6 $1.0 
MSR capitalization value (in basis points) (b)56 50 47 51 83 
Servicing income: (in millions)
Servicing fees, net (c)$13 $25 $36 $44 $39 $118 $178 
Mortgage servicing rights valuation, net of
economic hedge
$(1)$17 $20 $101 $$137 $47 
Residential mortgage loan statistics
Loan origination volume (in billions)$3.7 $4.0 $4.2 $3.2 $3.5 $15.1 $11.5 
Loan sale margin percentage3.75 %3.62 %3.67 %3.16 %2.42 %3.57 %2.41 %
Percentage of originations represented by:
Purchase volume (d)45 %44 %34 %36 %40 %40 %47 %
Refinance volume55 %56 %66 %64 %60 %60 %53 %
Other Information (b)
Customer-related statistics (average)
Non-teller deposit transactions (e)66 %67 %65 %59 %58 %64 %57 %
Digital consumer customers (f)77 %75 %73 %71 %71 %74 %69 %
Credit-related statistics
Nonperforming assets$1,211 $1,077 $1,037 $1,011 $1,046 
Net charge-offs - loans and leases $136 $125 $142 $166 $154 $569 $534 
Other statistics
ATMs8,900 9,058 9,058 9,048 9,091 
Branches (g)2,162 2,207 2,256 2,277 2,296 
Brokerage account client assets (in billions) (h)$59 $55 $53 $49 $54 

(a)Represents mortgage loan servicing balances for third parties and the related income.
(b)Presented as of period end, except for average customer-related statistics and net charge-offs, which are both shown for the three months and year ended, respectively.
(c)Servicing fees net of impact of decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan payments, prepayments, and loans that were paid down or paid off during the period.
(d)Mortgages with borrowers as part of residential real estate purchase transactions.
(e)Percentage of total consumer and business banking deposit transactions processed at an ATM or through our mobile banking application.
(f)Represents consumer checking relationships that process the majority of their transactions through non-teller channels.
(g)Excludes stand-alone mortgage offices and satellite offices (e.g., drive-ups, electronic branches and retirement centers) that provide limited products and/or services.
(h)Includes cash and money market balances.



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Table 19: Corporate & Institutional Banking (Unaudited) (a)
Three months endedYear ended
December 31September 30June 30March 31December 31December 31December 31
Dollars in millions2020202020202020201920202019
Income Statement
Net interest income$994 $1,025 $1,064 $966 $969 $4,049 $3,714 
Noninterest income919 723 726 694 646 3,062 2,537 
Total revenue1,913 1,748 1,790 1,660 1,615 7,111 6,251 
Provision for (recapture of) credit losses(166)211 1,585 458 65 2,088 284 
Noninterest expense801 663 670 722 726 2,856 2,813 
Pretax earnings (loss)1,278 874 (465)480 824 2,167 3,154 
Income taxes (benefit)282 201 (110)110 175 483 706 
Noncontrolling interest 10 
Earnings (loss)$992 $670 $(358)$370 $649 $1,674 $2,448 
Average Balance Sheet
Loans held for sale$1,039 $904 $704 $395 $616 $762 $505 
Loans
Commercial
Commercial and industrial $120,297 $125,187 $138,992 $117,288 $114,113 $125,426 $112,809 
Commercial real estate27,509 27,511 27,106 26,589 26,586 27,180 26,340 
Equipment lease financing6,381 6,772 7,036 7,066 7,200 6,813 7,255 
Total commercial 154,187 159,470 173,134 150,943 147,899 159,419 146,404 
Consumer10 11 11 10 15 
Total loans$154,197 $159,481 $173,142 $150,952 $147,910 $159,429 $146,419 
Total assets$177,792 $183,266 $199,254 $172,502 $167,555 $183,189 $164,243 
Deposits
Noninterest-bearing demand$64,334 $56,433 $53,157 $40,651 $39,513 $53,681 $39,141 
Interest-bearing demand28,793 29,730 27,674 21,101 20,851 26,838 19,487 
Money market36,705 38,015 36,595 28,468 30,264 34,959 28,091 
Other8,928 8,956 9,546 7,868 7,916 8,825 6,676 
Total deposits$138,760 $133,134 $126,972 $98,088 $98,544 $124,303 $93,395 
Performance Ratios
Return on average assets2.21 %1.45 %(0.72)%0.87 %1.54 %0.91 %1.49 %
Noninterest income to total revenue48 %41 %41 %42 %40 %43 %41 %
Efficiency42 %38 %37 %43 %45 %40 %45 %
Other Information
Consolidated revenue from:
Treasury Management (b)$472 $452 $469 $491 $494 $1,884 $1,866 
Capital Markets (b)$530 $345 $388 $344 $291 $1,607 $1,140 
Commercial mortgage banking activities
Commercial mortgage loans held for
sale (c)
$45 $46 $42 $29 $24 $162 $97 
Commercial mortgage loan servicing
income (d)
82 76 67 69 71 294 261 
Commercial mortgage servicing rights
    valuation, net of economic hedge (e)
14 16 22 20 72 19 
Total$141 $138 $131 $118 $97 $528 $377 
MSR asset value (f)$569 $515 $490 $477 $649 
Average loans by C&IB business
Corporate Banking$76,664 $81,617 $91,634 $78,057 $75,665 $81,977 $74,016 
Real Estate41,427 40,592 42,124 37,368 36,908 40,381 37,149 
Business Credit21,337 21,845 23,943 23,251 22,900 22,589 22,586 
Commercial Banking11,375 11,770 10,708 7,784 7,793 10,415 7,984 
Other3,394 3,657 4,733 4,492 4,644 4,067 4,684 
Total average loans$154,197 $159,481 $173,142 $150,952 $147,910 $159,429 $146,419 
Credit-related statistics
Nonperforming assets (f)$827 $832 $674 $508 $444 
Net charge-offs - loans and leases $99 $32 $99 $50 $47 $280 $105 

(a)See note (a) on page 14.
(b)Amounts reported in net interest income and noninterest income.
(c)Represents other noninterest income for valuations on commercial mortgage loans held for sale and related commitments, derivative valuations, originations fees, gains on sale of loans held for sale and net interest income on loans held for sale.
(d)Represents net interest income and noninterest income (primarily in corporate service fees) from loan servicing net of reduction in commercial mortgage servicing rights due to amortization expense and payoffs. Commercial mortgage servicing rights valuation, net of economic hedge is shown separately.
(e)Amounts are reported in corporate service fees.
(f)Presented as of period end.


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Table 20: Asset Management Group (Unaudited) (a)
Three months endedYear ended
December 31September 30June 30March 31December 31December 31December 31
Dollars in millions, except as noted2020202020202020201920202019
Income Statement
Net interest income$91 $89 $89 $88 $80 $357 $288 
Noninterest income225 221 204 204 272 854 991 
Total revenue316 310 293 292 352 1,211 1,279 
Provision for (recapture of) credit losses (2)(19)39 21 (1)
Noninterest expense211 211 217 219 232 858 939 
Pretax earnings107 118 37 70 119 332 341 
Income taxes25 27 16 28 77 79 
Earnings$82 $91 $28 $54 $91 $255 $262 
Average Balance Sheet
Loans
Consumer
Residential real estate $3,326 $2,976 $2,636 $2,385 $2,193 $2,832 $1,923 
Other consumer4,077 4,065 3,975 4,052 4,145 4,042 4,232 
Total consumer 7,403 7,041 6,611 6,437 6,338 6,874 6,155 
Commercial774 810 883 856 793 831 759 
Total loans$8,177 $7,851 $7,494 $7,293 $7,131 $7,705 $6,914 
Total assets$8,615 $8,361 $7,958 $7,801 $7,697 $8,186 $7,360 
Deposits
Noninterest-bearing demand$1,689 $1,692 $1,421 $1,468 $1,407 $1,568 $1,360 
Interest-bearing demand8,404 8,101 7,742 6,850 6,846 7,777 4,060 
Money market1,606 1,542 1,597 1,709 1,773 1,613 1,832 
Savings7,388 7,243 7,398 7,197 6,950 7,307 6,216 
Other482 554 722 847 898 650 822 
Total deposits$19,569 $19,132 $18,880 $18,071 $17,874 $18,915 $14,290 
Performance Ratios
Return on average assets3.78 %4.32 %1.41 %2.81 %4.69 %3.12 %3.56 %
Noninterest income to total revenue71 %71 %70 %70 %77 %71 %77 %
Efficiency67 %68 %74 %75 %66 %71 %73 %
Other Information
Nonperforming assets (b)$66 $39 $38 $34 $39 
Net charge-offs (recoveries) - loans and leases $$$(1)$$$
Client Assets Under Administration (in billions)
(b) (c)
Discretionary client assets under management$170 $158 $151 $136 $154 
Nondiscretionary client assets under administration154 142 138 128 143 
Total$324 $300 $289 $264 $297 
Discretionary client assets under management
Personal$108 $99 $94 $84 $99 
Institutional62 59 57 52 55 
Total$170 $158 $151 $136 $154 
(a)See note (a) on page 14.
(b)As of period end.
(c)Excludes brokerage account client assets.


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Glossary of Terms

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.

Adjusted average total assets - Primarily consisted of total average quarterly (or annual) assets plus/less unrealized losses (gains) on investment securities, less goodwill and certain other intangible assets (net of eligible deferred taxes).

Basel III common equity Tier 1 capital - Common stock plus related surplus, net of treasury stock, plus retained earnings, plus accumulated other comprehensive income for securities currently, and those transferred from, available for sale and pension and other postretirement benefit plans, subject to phase-in limits, less goodwill, net of associated deferred tax liabilities, less other disallowed intangibles, net of deferred tax liabilities and plus/less other adjustments. Significant common stock investments in unconsolidated financial institutions, as well as mortgage servicing rights and deferred tax assets, must then be deducted to the extent such items individually exceed 10%, or in the aggregate exceed 15%, of our adjusted Basel III common equity Tier 1 capital.

Basel III common equity Tier 1 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 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.

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.

Combined loan-to-value ratio (CLTV) - This is the aggregate principal balance(s) of the mortgages on a property divided by its appraised value or purchase price.

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.”

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.

Duration of equity - An estimate of the rate sensitivity of our economic value of equity. A negative duration of equity is associated with asset sensitivity (i.e., positioned for rising interest rates), while a positive value implies liability sensitivity (i.e., positioned for declining interest rates). For example, if the duration of equity is -1.5 years, the economic value of equity increases by 1.5% for each 100 basis point increase in interest rates.


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

Effective duration - A measurement, expressed in years, that, when multiplied by a change in interest rates, would approximate the percentage change in value of on- and off- balance sheet positions.

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; Consumer services; Corporate services; Residential mortgage; and Service charges on deposits.

FICO score - A credit bureau-based industry standard score created by Fair Isaac Co. which predicts the likelihood of borrower default. We use FICO scores both in underwriting and assessing credit risk in our consumer lending portfolio. Lower FICO scores indicate likely higher risk of default, while higher FICO scores indicate likely lower risk of default. FICO scores are updated on a periodic basis.

Futures and forward contracts - Contracts in which the buyer agrees to purchase and the seller agrees to deliver a specific financial instrument at a predetermined price or yield. May be settled either in cash or by delivery of the underlying financial instrument.

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

Impaired loans - Loans are determined to be impaired when, based on current information and events, it is probable that all contractually required payments will not be collected. Impaired loans include commercial nonperforming loans and consumer and commercial TDRs, regardless of nonperforming status. Excluded from impaired loans are nonperforming leases, loans held for sale, loans accounted for under the fair value option, smaller balance homogenous type loans and purchased impaired loans.

Leverage ratio - Basel III Tier 1 capital divided by average quarterly adjusted total assets.

LIBOR - Acronym for London InterBank Offered Rate. LIBOR is the average interest rate charged when banks in the London wholesale money market (or interbank market) borrow unsecured funds from each other. LIBOR rates are used as a benchmark for interest rates on a global basis. Our product set includes loans priced using LIBOR as a benchmark.

Loan-to-value ratio (LTV) - A calculation of a loan's collateral coverage that is used both in underwriting and assessing credit risk in our lending portfolio. LTV is the sum total of loan obligations secured by collateral divided by the market value of that same collateral. Market values of the collateral is based on an independent valuation of the collateral. For example, a LTV of less than 90% is better secured and has less credit risk than a LTV of greater than or equal to 90%.

Loss given default (LGD) - Assuming a credit obligor enters default status, an estimate of loss, based on collateral type, collateral value, loan exposure, and other factors. LGD is net of recovery, through any means, including but not limited to the liquidation of collateral or deficiency judgments rendered from foreclosure or bankruptcy proceedings.

Nonaccrual loans - Loans for which we do not accrue interest income. Nonaccrual loans include nonperforming loans, in addition to loans accounted for under fair value option and loans accounted for as held for sale for which full collection of contractual principal and/or interest is not probable.

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.

Nonperforming assets - Nonperforming assets include nonperforming loans, OREO and foreclosed asserts. 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, including TDRs which have not returned to performing status. 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.



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Notional amount - A number of currency units, shares, or other units specified in a derivative contract.

Off-balance sheet credit exposures - Standby letters of credit, financial guarantees, commitments to extend credit and similar unfunded obligations that are not unilaterally, unconditionally, cancelable at PNC’s 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).

Options - Contracts that grant the purchaser, for a premium payment, the right, but not the obligation, to either purchase or sell the associated financial instrument at a set price during a specified period or at a specified date in the future.

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.

Probability of default (PD) - An estimate of the likelihood that a credit obligor will enter into default status.

Purchased credit deteriorated assets - 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.

Recovery - Cash proceeds received on a loan that we had previously charged off. We credit the amount received to the allowance for loan and lease losses.

Reasonable and supportable forecast period (RSFP) - In context of CECL, the period for which forecasts and projections of macroeconomic variables have been determined to be reasonable and supportable, and are used as inputs for ACL measurement.

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 - An intangible asset or liability 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.

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. To provide more meaningful comparisons of yields and margins for all interest-earning assets, we use interest income on a taxable-equivalent basis in calculating average yields and net interest margins by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on other taxable investments. This adjustment is not permitted under GAAP on the Consolidated Income Statement.

Troubled debt restructuring (TDR) - A loan whose terms have been restructured in a manner that grants a concession to a borrower experiencing financial difficulties.

Yield curve - A graph showing the relationship between the yields on financial instruments or market indices of the same credit quality with different maturities. For example, a “normal” or “positive” yield curve exists when long-term bonds have higher yields than short-term bonds. A “flat” yield curve exists when yields are the same for short-term and long-term bonds. A “steep” yield curve exists when yields on long-term bonds are significantly higher than on short-term bonds. An “inverted” or “negative” yield curve exists when short-term bonds have higher yields than long-term bonds.