Exhibit 99.2

pncbanklogoa18a.jpg



THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT
FIRST QUARTER 2023
(Unaudited)



THE PNC FINANCIAL SERVICES GROUP, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2023
(UNAUDITED)
Consolidated Results:
Page
6-7
9-11
Business Segment Results:
14-15
18-20

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on April 14, 2023. 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 coast-to-coast. PNC also has strategic international offices in four countries outside the U.S.





THE PNC FINANCIAL SERVICES GROUP, INC.
Cross Reference Index to First Quarter 2023 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 ended
March 31December 31September 30June 30March 31
In millions, except per share data20232022202220222022
Interest Income
Loans$4,258 $3,860 $3,138 $2,504 $2,293 
Investment securities885 836 715 631 544 
Other516 413 279 146 77 
Total interest income5,659 5,109 4,132 3,281 2,914 
Interest Expense
Deposits1,291 812 340 88 27 
Borrowed funds783 613 317 142 83 
Total interest expense2,074 1,425 657 230 110 
Net interest income3,585 3,684 3,475 3,051 2,804 
Noninterest Income
Asset management and brokerage356 345 357 365 377 
Capital markets and advisory262 336 299 409 252 
Card and cash management659 671 671 671 620 
Lending and deposit services306 296 287 282 269 
Residential and commercial mortgage177 184 143 161 159 
Other (a) (b)258 247 317 177 211 
Total noninterest income2,018 2,079 2,074 2,065 1,888 
Total revenue5,603 5,763 5,549 5,116 4,692 
Provision For (Recapture of) Credit Losses235 408 241 36 (208)
Noninterest Expense
Personnel1,826 1,943 1,805 1,779 1,717 
Occupancy251 247 241 246 258 
Equipment350 369 344 351 331 
Marketing74 106 93 95 61 
Other820 809 797 773 805 
Total noninterest expense3,321 3,474 3,280 3,244 3,172 
Income before income taxes and noncontrolling interests2,047 1,881 2,028 1,836 1,728 
Income taxes353 333 388 340 299 
Net income1,694 1,548 1,640 1,496 1,429 
Less: Net income attributable to noncontrolling interests17 20 16 15 21 
Preferred stock dividends (c)68 120 65 71 45 
Preferred stock discount accretion and redemptions2 1 1 1 2 
Net income attributable to common shareholders$1,607 $1,407 $1,558 $1,409 $1,361 
Earnings Per Common Share
Basic$3.98 $3.47 $3.78 $3.39 $3.23 
Diluted$3.98 $3.47 $3.78 $3.39 $3.23 
Average Common Shares Outstanding
Basic401 404 410 414 420 
Diluted402 404 410 414 420 
Efficiency59 %60 %59 %63 %68 %
Noninterest income to total revenue36 %36 %37 %40 %40 %
Effective tax rate (d)17.2 %17.7 %19.1 %18.5 %17.3 %
(a)Includes net gains (losses) on sales of securities of less than $1 million, $(3) million, less than $1 million, less than $(1) million and $(4) million for the quarters ended March 31, 2023, December 31, 2022, September 30, 2022, June 30, 2022 and March 31, 2022, respectively.
(b)Includes Visa Class B derivative fair value adjustments of $(45) million, $(41) million, $13 million, $(16) million and $4 million for the quarters ended March 31, 2023, December 31, 2022, September 30, 2022, June 30, 2022 and March 31, 2022, respectively.
(c)Dividends are payable quarterly other than Series R and Series S preferred stock, which are payable semiannually.
(d)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)
March 31December 31September 30June 30March 31
In millions, except par value20232022202220222022
Assets
Cash and due from banks$5,940 $7,043 $6,548 $8,582 $7,572 
Interest-earning deposits with banks (a)33,865 27,320 40,278 28,404 48,776 
Loans held for sale (b)998 1,010 1,126 1,191 1,506 
Investment securities – available for sale 43,220 44,159 45,798 52,984 112,313 
Investment securities – held to maturity95,019 95,175 90,653 79,748 20,098 
Loans (b)326,475 326,025 315,400 310,800 294,457 
Allowance for loan and lease losses (4,741)(4,741)(4,581)(4,462)(4,558)
Net loans321,734 321,284 310,819 306,338 289,899 
Equity investments8,323 8,437 8,130 8,441 7,798 
Mortgage servicing rights3,293 3,423 3,206 2,608 2,208 
Goodwill10,987 10,987 10,987 10,916 10,916 
Other (b) 38,398 38,425 41,932 41,574 40,160 
Total assets$561,777 $557,263 $559,477 $540,786 $541,246 
Liabilities
Deposits
Noninterest-bearing$118,014 $124,486 $138,423 $146,438 $150,798 
Interest-bearing318,819 311,796 299,771 294,373 299,399 
Total deposits436,833 436,282 438,194 440,811 450,197 
Borrowed funds
Federal Home Loan Bank borrowings32,020 32,075 30,075 10,000 
Senior debt19,622 16,657 13,357 14,358 16,206 
Subordinated debt5,630 6,307 7,286 7,487 6,766 
Other (b)3,550 3,674 3,915 4,139 3,599 
Total borrowed funds60,822 58,713 54,633 35,984 26,571 
Allowance for unfunded lending related commitments 672 694 682 681 639 
Accrued expenses and other liabilities14,376 15,762 19,245 15,622 14,623 
Total liabilities512,703 511,451 512,754 493,098 492,030 
Equity
Preferred stock (c)
Common stock - $5 par value
Authorized 800 shares, issued 543 shares2,714 2,714 2,714 2,714 2,713 
Capital surplus19,864 18,376 19,810 18,531 17,487 
Retained earnings54,598 53,572 52,777 51,841 51,058 
Accumulated other comprehensive income (loss)(9,108)(10,172)(10,486)(8,358)(5,731)
Common stock held in treasury at cost: 144, 142, 139, 132, and 128 shares(19,024)(18,716)(18,127)(17,076)(16,346)
Total shareholders’ equity49,044 45,774 46,688 47,652 49,181 
Noncontrolling interests30 38 35 36 35 
Total equity49,074 45,812 46,723 47,688 49,216 
Total liabilities and equity$561,777 $557,263 $559,477 $540,786 $541,246 
(a)Amounts include balances held with the Federal Reserve Bank of $32.5 billion, $26.9 billion, $39.8 billion, $28.0 billion and $48.4 billion as of March 31, 2023, December 31, 2022, September 30, 2022, June 30, 2022 and March 31, 2022, respectively.
(b)Amounts include assets and liabilities for which PNC has elected the fair value option. Our 2022 Form 10-K included, and our first quarter 2023 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
March 31December 31September 30June 30March 31
In millions20232022202220222022
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency$31,850 $31,818 $32,500 $37,285 $67,498 
Non-agency689 7147489021,007
Commercial mortgage-backed3,102 3,3773,4894,3625,229
Asset-backed2181051102,3886,225
U.S. Treasury and government agencies9,08810,34511,78917,48047,468
Other3,2633,3703,5064,2004,876
Total securities available for sale48,21049,72952,14266,617132,303
Securities held to maturity
Residential mortgage-backed45,616 44,184 39,329 33,086 106 
Commercial mortgage-backed2,453 2,323 2,069 1,175 
Asset-backed7,026 6,995 6,571 4,119 
U.S. Treasury and government agencies36,74836,441 34,27928,167 919
Other3,3383,2182,6001,560569
Total securities held to maturity95,18193,16184,84868,1071,594
Total investment securities143,391142,890136,990134,724133,897
Loans
Commercial and industrial182,017179,111172,788166,968155,481
Commercial real estate36,11036,18135,14034,46734,004
Equipment lease financing6,4526,2756,2026,2006,099
Consumer55,02054,80954,56354,55154,965
Residential real estate45,92745,49944,33342,60440,152
Total loans325,526321,875313,026304,790290,701
Interest-earning deposits with banks (c)34,05430,39531,89239,68962,540
Other interest-earning assets8,8069,6909,5609,9359,417
Total interest-earning assets511,777504,850491,468489,138496,555
Noninterest-earning assets50,55552,35655,62957,74053,541
Total assets$562,332 $557,206 $547,097 $546,878 $550,096 
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market$65,753 $63,944 $60,934 $58,019 $62,596 
Demand124,376122,501120,358119,636112,372
Savings104,408102,020106,761109,063108,532
Time deposits20,51912,98210,02010,37816,043
Total interest-bearing deposits315,056301,447298,073297,096299,543
Borrowed funds
Federal Home Loan Bank borrowings32,05630,64016,708 6,978
Senior debt19,67916,31214,59716,17218,015
Subordinated debt6,1006,9337,6146,9986,773
Other5,1335,3465,3425,5085,524
Total borrowed funds62,96859,23144,26135,65630,312
Total interest-bearing liabilities378,024360,678342,334332,752329,855
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits121,176133,461141,167149,432153,726
Accrued expenses and other liabilities16,01417,46115,69917,11614,058
Equity47,11845,60647,89747,57852,457
Total liabilities and equity$562,332 $557,206 $547,097 $546,878 $550,096 
(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. Basis 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). Average balances for certain loans and borrowed funds accounted for at fair value are included in noninterest-earning assets and noninterest-bearing liabilities, with changes in fair value recorded in Noninterest income.
(c)Amounts include average balances held with the Federal Reserve Bank of $33.5 billion, $30.0 billion, $31.5 billion, $39.3 billion and $62.3 billion for the three months ended March 31, 2023, December 31, 2022, September 30, 2022, June 30, 2022 and March 31, 2022, respectively.

THE PNC FINANCIAL SERVICES GROUP, INC.

Page 4
Table 4: Details of Net Interest Margin (Unaudited)
Three months ended
March 31December 31September 30June 30March 31
20232022202220222022
Average yields/rates (a)
Yield on interest-earning assets
Investment securities
Securities available for sale
Residential mortgage-backed
Agency2.67 %2.54 %2.36 %2.17 %1.73 %
Non-agency8.53 %7.85 %7.62 %7.56 %7.53 %
Commercial mortgage-backed2.62 %2.75 %2.70 %2.45 %2.36 %
Asset-backed7.04 %11.98 %6.31 %1.84 %1.35 %
U.S. Treasury and government agencies2.05 %1.96 %1.73 %1.60 %1.18 %
Other2.47 %2.39 %2.47 %2.59 %2.73 %
Total securities available for sale2.64 %2.52 %2.33 %2.13 %1.62 %
Securities held to maturity
Residential mortgage-backed2.74 %2.60 %2.30 %1.98 %
Commercial mortgage-backed4.95 %4.57 %3.50 %2.30 %
Asset-backed3.97 %3.44 %2.58 %1.92 %
U.S. Treasury and government agencies1.33 %1.30 %1.19 %1.05 %2.61 %
Other4.62 %4.47 %4.10 %4.21 %4.17 %
Total securities held to maturity2.41 %2.27 %1.96 %1.65 %2.99 %
Total investment securities2.49 %2.36 %2.10 %1.89 %1.64 %
Loans
Commercial and industrial5.34 %4.70 %3.69 %2.90 %2.75 %
Commercial real estate6.02 %5.28 %4.27 %3.15 %2.79 %
Equipment lease financing4.28 %4.18 %3.85 %3.62 %3.74 %
Consumer6.34 %5.88 %5.32 %4.68 %4.69 %
Residential real estate3.35 %3.28 %3.21 %3.11 %3.10 %
Total loans5.29 %4.75 %3.98 %3.29 %3.19 %
Interest-earning deposits with banks4.58 %3.76 %2.32 %0.79 %0.19 %
Other interest-earning assets5.75 %5.20 %3.94 %2.76 %2.07 %
Total yield on interest-earning assets4.46 %4.02 %3.35 %2.69 %2.37 %
Rate on interest-bearing liabilities
Interest-bearing deposits
Money market2.40 %1.75 %0.85 %0.19 %0.03 %
Demand1.58 %1.14 %0.59 %0.15 %0.02 %
Savings1.03 %0.50 %0.09 %0.04 %0.04 %
Time deposits3.00 %1.45 %0.26 %0.18 %0.13 %
Total interest-bearing deposits1.66 %1.07 %0.45 %0.12 %0.04 %
Borrowed funds
Federal Home Loan Bank borrowings4.80 %3.92 %2.60 %1.24 %
Senior debt5.39 %4.30 %2.96 %1.61 %1.02 %
Subordinated debt5.69 %4.79 %3.43 %1.94 %1.40 %
Other
3.70 %3.24 %2.20 %1.46 %0.97 %
Total borrowed funds4.98 %4.07 %2.81 %1.58 %1.10 %
Total rate on interest-bearing liabilities2.20 %1.55 %0.75 %0.27 %0.13 %
Interest rate spread2.26 %2.47 %2.60 %2.42 %2.24 %
Benefit from use of noninterest-bearing sources (b)0.58 %0.45 %0.22 %0.08 %0.04 %
Net interest margin2.84 %2.92 %2.82 %2.50 %2.28 %
(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 March 31, 2023, December 31, 2022, September 30, 2022, June 30, 2022 and March 31, 2022 were $38 million, $36 million, $29 million, $25 million and $22 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: Details of Loans (Unaudited)
March 31December 31September 30June 30March 31
In millions20232022202220222022
Commercial
Commercial and industrial
Manufacturing$32,132 $30,845 $28,629 $27,179 $25,035 
Retail/wholesale trade29,17229,17627,53226,47525,027
Service providers23,18623,54822,04321,18420,584
Financial services22,53421,32021,59019,59417,674
Real estate related (a)17,54817,78017,51316,17915,459
Technology, media & telecommunications11,33811,84511,36616,24910,684
Health care10,53710,64910,42010,1539,810
Transportation and warehousing7,8247,8587,9777,6047,209
Other industries28,72629,19826,74327,21426,392
Total commercial and industrial182,997 182,219 173,813 171,831 157,874 
Commercial real estate35,991 36,316 35,592 34,452 34,171 
Equipment lease financing6,424 6,514 6,192 6,240 6,216 
Total commercial225,412225,049215,597212,523198,261
Consumer
Residential real estate46,067 45,889 45,057 43,717 41,566 
Home equity26,203 25,983 25,367 24,693 24,185 
Automobile14,923 14,836 15,025 15,323 16,001 
Credit card6,961 7,069 6,774 6,650 6,464 
Education2,131 2,173 2,287 2,332 2,441 
Other consumer4,778 5,026 5,293 5,562 5,539 
Total consumer101,063 100,976 99,803 98,277 96,196 
Total loans$326,475 $326,025 $315,400 $310,800 $294,457 
(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
March 31December 31September 30June 30March 31
Dollars in millions20232022202220222022
Allowance for loan and lease losses
Beginning balance$4,741 $4,581 $4,462 $4,558 $4,868 
Adoption of ASU 2022-02 (a)(35)
Beginning balance, adjusted4,706 4,581 4,462 4,558 4,868 
Gross charge-offs:
Commercial and industrial(104)(121)(65)(30)(41)
Commercial real estate(12)(22)(7)(5)(10)
Equipment lease financing(4)(2)(1)(2)(1)
Residential real estate(3)(2)(2) (7)
Home equity(6)(6)(3)(2)(4)
Automobile(33)(34)(32)(34)(52)
Credit card(74)(62)(59)(67)(68)
Education(4)(4)(4)(4)(4)
Other consumer(42)(64)(49)(51)(64)
Total gross charge-offs(282)(317)(222)(195)(251)
Recoveries:
Commercial and industrial20 33 23 15 30 
Commercial real estate2 2 1 1 1 
Equipment lease financing3 1 1 3 3 
Residential real estate3 2 4 6 5 
Home equity11 13 19 18 21 
Automobile24 24 30 39 31 
Credit card11 8 12 19 12 
Education2 1 1 2 1 
Other consumer11 9 12 9 10 
Total recoveries87 93 103 112 114 
Net (charge-offs) / recoveries:
Commercial and industrial(84)(88)(42)(15)(11)
Commercial real estate(10)(20)(6)(4)(9)
Equipment lease financing(1)(1)1 2 
Residential real estate2 6 (2)
Home equity5 7 16 16 17 
Automobile(9)(10)(2)5 (21)
Credit card(63)(54)(47)(48)(56)
Education(2)(3)(3)(2)(3)
Other consumer(31)(55)(37)(42)(54)
Total net (charge-offs) (195)(224)(119)(83)(137)
Provision for (recapture of) credit losses (b)229 380 241 (10)(172)
Other1 4 (3)(3)(1)
Ending balance$4,741 $4,741 $4,581 $4,462 $4,558 
Supplemental Information
Net charge-offs
Commercial net charge-offs$(95)$(109)$(48)$(18)$(18)
Consumer net charge-offs(100)(115)(71)(65)(119)
Total net charge-offs $(195)$(224)$(119)$(83)$(137)
Net charge-offs to average loans 0.24 %0.28 %0.15 %0.11 %0.19 %
Commercial0.17 %0.20 %0.09 %0.03 %0.04 %
Consumer0.40 %0.45 %0.28 %0.27 %0.51 %
(a)Represents the impact of adopting ASU 2022-02 Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures on January 1, 2023. As a result of adoption, we eliminated the accounting guidance for TDRs, including the use of a discounted cash flow approach to measure the allowance for TDRs. Our first quarter 2023 Form 10-Q will include additional information related to our adoption of this ASU.
(b)See Table 7 for the components of the Provision for (recapture of) 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 (Recapture of) Credit Losses
Three months ended
March 31December 31September 30June 30March 31
In millions20232022202220222022
Provision for (recapture of) credit losses
Loans and leases$229 $380 $241 $(10)$(172)
Unfunded lending related commitments(22)12 1 42 (23)
Investment securities (1)10 3 3 1 
Other financial assets29 6 (4)1 (14)
Total provision for (recapture of) credit losses$235 $408 $241 $36 $(208)


Table 8: Allowance for Credit Losses by Loan Class (a)
March 31, 2023December 31, 2022March 31, 2022

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$1,771 $182,997 0.97 %$1,957 $182,219 1.07 %$1,884 $157,874 1.19 %
Commercial real estate1,171 35,991 3.25 %1,047 36,316 2.88 %1,034 34,171 3.03 %
Equipment lease financing104 6,424 1.62 %110 6,514 1.69 %85 6,216 1.37 %
Total commercial3,046 225,412 1.35 %3,114 225,049 1.38 %3,003 198,261 1.51 %
Consumer
Residential real estate95 46,067 0.21 %92 45,889 0.20 %25 41,566 0.06 %
Home equity316 26,203 1.21 %274 25,983 1.05 %170 24,185 0.70 %
Automobile199 14,923 1.33 %226 14,836 1.52 %276 16,001 1.72 %
Credit card782 6,961 11.23 %748 7,069 10.58 %708 6,464 10.95 %
Education64 2,131 3.00 %63 2,173 2.90 %66 2,441 2.70 %
Other consumer239 4,778 5.00 %224 5,026 4.46 %310 5,539 5.60 %
Total consumer1,695 101,063 1.68 %1,627 100,976 1.61 %1,555 96,196 1.62 %
Total
4,741 $326,475 1.45 %4,741 $326,025 1.45 %4,558 $294,457 1.55 %
Allowance for unfunded lending related commitments
672 694 639 
Allowance for credit losses
$5,413 $5,435 $5,197 
Supplemental Information
Allowance for credit losses to total loans
1.66 %1.67 %1.76 %
Commercial1.60 %1.66 %1.81 %
Consumer1.79 %1.69 %1.67 %
(a)    Excludes allowances for investment securities and other financial assets, which together totaled $205 million, $176 million and $158 million at March 31, 2023, December 31, 2022 and March 31, 2022, respectively.

THE PNC FINANCIAL SERVICES GROUP, INC.

Page 8
Details of Nonperforming Assets (Unaudited)

Table 9: Nonperforming Assets by Type
March 31December 31September 30June 30March 31
Dollars in millions20232022202220222022
Nonperforming loans (a)
Commercial
Commercial and industrial
Service providers$128 $174 $223 $151 $173 
Manufacturing105 85 88 101 70 
Retail/wholesale trade82 151 158 87 59 
Health care57 50 45 54 37 
Real estate related (b)43 50 47 59 39 
Transportation and warehousing24 27 29 30 28 
Technology, media & telecommunications22 20 20 21 36 
Other industries87 106 138 146 218 
Total commercial and industrial548 663 748 649 660 
Commercial real estate337 189 148 161 332 
Equipment lease financing6 6 7 5 6 
Total commercial891 858 903 815 998 
Consumer (c)
Residential real estate 432 424 429 457 526 
Home equity523 526 530 556 576 
Automobile145 155 167 175 181 
Credit card9 8 6 6 8 
Other consumer10 14 33 37 9 
Total consumer1,119 1,127 1,165 1,231 1,300 
Total nonperforming loans (d)2,010 1,985 2,068 2,046 2,298 
OREO and foreclosed assets38 34 33 29 26 
Total nonperforming assets$2,048 $2,019 $2,101 $2,075 $2,324 
Nonperforming loans to total loans0.62 %0.61 %0.66 %0.66 %0.78 %
Nonperforming assets to total loans, OREO and foreclosed assets0.63 %0.62 %0.67 %0.67 %0.79 %
Nonperforming assets to total assets0.36 %0.36 %0.38 %0.38 %0.43 %
Allowance for loan and lease losses to nonperforming loans 236 %239 %222 %218 %198 %
(a)In connection with the adoption of ASU 2022-02 Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, nonperforming loans as of March 31, 2023 include certain loans whose terms were modified as a result of a borrower’s financial difficulty. Prior period amounts included nonperforming TDRs, for which accounting guidance was eliminated effective January 1, 2023. Our first quarter 2023 Form 10-Q will include additional information related to our adoption of this ASU.
(b)Represents loans related to customers in the real estate and construction industries.
(c)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.
(d)Nonperforming loans exclude certain government insured or guaranteed loans, loans held for sale and loans accounted for under the fair value option.


Table 10: Change in Nonperforming Assets
January 1, 2023 -October 1, 2022 -July 1, 2022 -April 1, 2022 -January 1, 2022 -
In millionsMarch 31, 2023December 31, 2022September 30, 2022June 30, 2022March 31, 2022
Beginning balance$2,019 $2,101 $2,075 $2,324 $2,506 
New nonperforming assets452 346 438 393 346 
Charge-offs and valuation adjustments(122)(174)(79)(55)(62)
Principal activity, including paydowns and payoffs(172)(139)(182)(273)(274)
Asset sales and transfers to loans held for sale(46)(22)(3)(6)(21)
Returned to performing status(83)(93)(148)(308)(171)
Ending balance$2,048 $2,019 $2,101 $2,075 $2,324 




THE PNC FINANCIAL SERVICES GROUP, INC.

Page 9
Accruing Loans Past Due (Unaudited)                  

Under the CARES Act credit reporting rules, certain loans modified due to COVID-19 related hardships are not being reported as past due
for the periods presented based on the contractual terms of the loan, even where borrowers may not be making payments on their loans during the modification period.

Table 11: Accruing Loans Past Due 30 to 59 Days (a)
March 31December 31September 30June 30March 31
Dollars in millions20232022202220222022
Commercial
Commercial and industrial$119$169$321$99$185
Commercial real estate2519112868
Equipment lease financing33206720
Total commercial177208338134273
Consumer
Residential real estate
Non government insured 167190223230239
Government insured7891756866
Home equity4853464341
Automobile7910696102109
Credit card4850443739
Education
Non government insured 65655
Government insured
2929303936
Other consumer1315213847
Total consumer468539541562582
Total$645$747$879$696$855
Supplemental Information
Total accruing loans past due 30-59 days to total loans0.20 %0.23 %0.28 %0.22 %0.29 %
Commercial0.08 %0.09 %0.16 %0.06 %0.14 %
Consumer0.46 %0.53 %0.54 %0.57 %0.61 %
(a)Excludes loans held for sale.



THE PNC FINANCIAL SERVICES GROUP, INC.

Page 10
Accruing Loans Past Due (Unaudited) (Continued)

Table 12: Accruing Loans Past Due 60 to 89 Days (a)
March 31December 31September 30June 30March 31
Dollars in millions20232022202220222022
Commercial
Commercial and industrial$21$27$55$128$64
Commercial real estate1441141
Equipment lease financing54641
Total commercial273565143106
Consumer
Residential real estate
Non government insured 4354495347
Government insured5558464237
Home equity1820161416
Automobile1825212426
Credit card3535302528
Education
Non government insured
42423
Government insured
1720222121
Other consumer812152126
Total consumer198226203202204
Total$225$261$268$345$310
Supplemental Information
Total accruing loans past due 60-89 days to total loans0.07 %0.08 %0.08 %0.11 %0.11 %
Commercial0.01 %0.02 %0.03 %0.07 %0.05 %
Consumer0.20 %0.22 %0.20 %0.21 %0.21 %
(a)Excludes loans held for sale.




THE PNC FINANCIAL SERVICES GROUP, INC.

Page 11
Accruing Loans Past Due (Unaudited) (Continued)

Table 13: Accruing Loans Past Due 90 Days or More (a)
March 31December 31September 30June 30March 31
Dollars in millions20232022202220222022
Commercial
Commercial and industrial$134$137$139$138$105
Commercial real estate57
Total commercial134137144138112
Consumer
Residential real estate
Non government insured 2632302041
Government insured152167166182232
Automobile57668
Credit card7470585462
Education
Non government insured 22222
Government insured
5457615662
Other consumer910121215
Total consumer322345335332422
Total$456$482$479$470$534
Supplemental Information
Total accruing loans past due 90 days or more to total loans0.14 %0.15 %0.15 %0.15 %0.18 %
Commercial0.06 %0.06 %0.07 %0.06 %0.06 %
Consumer0.32 %0.34 %0.34 %0.34 %0.44 %
Total accruing loans past due$1,326$1,490$1,626$1,511$1,699
Commercial$338$380$547$415$491
Consumer$988$1,110$1,079$1,096$1,208
Total accruing loans past due to total loans0.41 %0.46 %0.52 %0.49 %0.58 %
Commercial0.15 %0.17 %0.25 %0.20 %0.25 %
Consumer0.98 %1.10 %1.08 %1.12 %1.26 %
(a)Excludes loans held for sale.





































THE PNC FINANCIAL SERVICES GROUP, INC.

Page 12

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 coast-to-cost branch network, ATMs, call centers, online banking and mobile channels. 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, 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, international payment 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 through PNC Private Bank Hawthorn.
•Institutional Asset Management provides outsourced chief investment officer, custody, private real estate, cash and fixed income client solutions, retirement plan fiduciary investment services to institutional clients including corporations, healthcare systems, insurance companies, unions, municipalities and non-profits.

Table 14: Period End Employees
March 31December 31September 30June 30March 31
20232022202220222022
Full-time employees
Retail Banking31,583 32,467 33,288 33,565 33,293 
Other full-time employees27,874 27,427 26,328 25,390 25,037 
Total full-time employees59,457 59,894 59,616 58,955 58,330 
Part-time employees
Retail Banking1,537 1,577 1,520 1,712 1,670 
Other part-time employees79 74 77 460 82 
Total part-time employees1,616 1,651 1,597 2,172 1,752 
Total61,073 61,545 61,213 61,127 60,082 


THE PNC FINANCIAL SERVICES GROUP, INC.

Page 13
Table 15: Summary of Business Segment Net Income and Revenue (Unaudited) (a)
Three months ended
March 31December 31September 30June 30March 31
In millions20232022202220222022
Net Income
Retail Banking$647 $752 $560 $322 $340 
Corporate & Institutional Banking1,059 982 929 1,003 956 
Asset Management Group52 52 90 86 102 
Other(81)(258)45 70 10 
Net income excluding noncontrolling interests$1,677 $1,528 $1,624 $1,481 $1,408 
  
Revenue
Retail Banking$3,024 $3,079 $2,742 $2,410 $2,276 
Corporate & Institutional Banking2,300 2,451 2,255 2,221 1,964 
Asset Management Group357 375 396 387 386 
Other(78)(142)156 98 66 
Total revenue$5,603 $5,763 $5,549 $5,116 $4,692 
(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 14
Table 16: Retail Banking (Unaudited) (a)
Three months ended
March 31December 31September 30June 30March 31
Dollars in millions20232022202220222022
Income Statement
Net interest income$2,281 $2,330 $2,017 $1,662 $1,531 
Noninterest income743 749 725 748 745 
Total revenue3,024 3,079 2,742 2,410 2,276 
Provision for (recapture of) credit losses238 193 92 55 (81)
Noninterest expense1,927 1,892 1,901 1,913 1,892 
Pretax earnings 859 994 749 442 465 
Income taxes202 232 175 105 109 
Noncontrolling interests10 10 14 15 16 
Earnings $647 $752 $560 $322 $340 
Average Balance Sheet
Loans held for sale$542 $737 $837 $957 $1,183 
Loans
Consumer
Residential real estate$35,421 $35,286 $34,465 $33,240 $31,528 
Home equity24,571 24,126 23,393 22,886 22,458 
Automobile14,918 14,793 15,088 15,566 16,274 
Credit card6,904 6,882 6,684 6,508 6,401 
Education2,188 2,257 2,327 2,410 2,532 
Other consumer1,990 2,049 2,092 2,173 2,348 
Total consumer 85,992 85,393 84,049 82,783 81,541 
Commercial 11,438 11,181 10,881 11,044 11,610 
Total loans$97,430 $96,574 $94,930 $93,827 $93,151 
Total assets$115,384 $115,827 $114,619 $113,068 $111,754 
Deposits
Noninterest-bearing $60,801 $64,031 $65,405 $65,599 $64,058 
Interest-bearing 201,720 195,743 198,956 202,801 201,021 
Total deposits$262,521 $259,774 $264,361 $268,400 $265,079 
Performance Ratios
Return on average assets2.27 %2.58 %1.94 %1.14 %1.23 %
Noninterest income to total revenue25 %24 %26 %31 %33 %
Efficiency64 %61 %69 %79 %83 %
(a)See note (a) on page 13.

THE PNC FINANCIAL SERVICES GROUP, INC.

Page 15
Retail Banking (Unaudited) (Continued)
Three months ended
March 31December 31September 30June 30March 31
Dollars in millions, except as noted20232022202220222022
Supplemental Noninterest Income Information
Asset management and brokerage $131 $128 $131 $135 $134 
Card and cash management$324 $335 $344 $351 $308 
Lending and deposit services $181 $172 $167 $167 $164 
Residential and commercial mortgage $104 $111 $38 $71 $99 
Residential Mortgage Information
Residential mortgage servicing statistics (in billions, except as noted) (a)
Serviced portfolio balance (b)$188 $190 $170 $145 $135 
Serviced portfolio acquisitions$2 $24 $29 $15 $6 
MSR asset value (b)$2.2 $2.3 $2.1 $1.6 $1.3 
MSR capitalization value (in basis points) (b)119 122 122 112 98 
Servicing income: (in millions)
Servicing fees, net (c)$78 $73 $50 $36 $33 
Mortgage servicing rights valuation, net of economic hedge$14 $24 $(30)$13 $2 
Residential mortgage loan statistics
Loan origination volume (in billions)$1.4 $2.1 $3.1 $4.8 $5.1 
Loan sale margin percentage2.26 %2.20 %1.97 %1.88 %2.45 %
Percentage of originations represented by:
Purchase volume (d)84 %88 %85 %74 %42 %
Refinance volume16 %12 %15 %26 %58 %
Other Information (b)
Customer-related statistics (average)
Non-teller deposit transactions (e)65 %65 %65 %64 %64 %
Digital consumer customers (f)75 %76 %78 %78 %78 %
Credit-related statistics
Nonperforming assets $1,009 $1,003 $1,027 $1,088 $1,168 
Net charge-offs - loans and leases$112 $108 $98 $88 $141 
Other statistics
ATMs8,697 8,933 9,169 9,301 9,502 
Branches (g)2,450 2,518 2,527 2,535 2,591 
Brokerage account client assets (in billions) (h)$73 $70 $67 $68 $74 
(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 ended.
(c)Servicing fees net of impact of decrease in MSR value due to passage of time, including the impact from regularly scheduled loan principal payments, prepayments and loans 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)Reflects all branches and solution centers excluding standalone 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.


THE PNC FINANCIAL SERVICES GROUP, INC.

Page 16
Table 17: Corporate & Institutional Banking (Unaudited) (a)
Three months ended
March 31December 31September 30June 30March 31
Dollars in millions20232022202220222022
Income Statement
Net interest income$1,414 $1,489 $1,368 $1,253 $1,160 
Noninterest income886 962 887 968 804 
Total revenue2,300 2,451 2,255 2,221 1,964 
Provision for (recapture of) credit losses(28)183 150 (17)(118)
Noninterest expense939 990 890 934 837 
Pretax earnings1,389 1,278 1,215 1,304 1,245 
Income taxes 325 291 281 298 285 
Noncontrolling interests5 5 5 3 4 
Earnings$1,059 $982 $929 $1,003 $956 
Average Balance Sheet
Loans held for sale$456 $337 $449 $490 $628 
Loans
Commercial
Commercial and industrial $168,874 $166,176 $160,140 $153,948 $141,622 
Commercial real estate34,605 34,663 33,525 32,844 32,433 
Equipment lease financing6,451 6,274 6,202 6,201 6,099 
Total commercial 209,930 207,113 199,867 192,993 180,154 
Consumer7 8 7 14 8 
Total loans$209,937 $207,121 $199,874 $193,007 $180,162 
Total assets $234,536 $234,120 $224,984 $219,513 $200,724 
Deposits
Noninterest-bearing $58,529 $67,340 $73,523 $81,028 $86,178 
Interest-bearing86,832 79,916 71,925 65,151 68,429 
Total deposits$145,361 $147,256 $145,448 $146,179 $154,607 
Performance Ratios
Return on average assets1.83 %1.66 %1.64 %1.83 %1.93 %
Noninterest income to total revenue39 %39 %39 %44 %41 %
Efficiency41 %40 %39 %42 %43 %
Other Information
Consolidated revenue from:
Treasury Management (b)$785 $843 $753 $659 $546 
Commercial mortgage banking activities:
Commercial mortgage loans held for sale (c)$27 $15 $26 $20 $16 
Commercial mortgage loan servicing income (d)39 52 66 70 68 
Commercial mortgage servicing rights valuation, net of economic hedge41 39 53 33 13 
Total$107 $106 $145 $123 $97 
MSR asset value (e)$1,061 $1,113 $1,132 $988 $886 
Average loans by C&IB business
Corporate Banking$118,229 $113,619 $109,197 $103,595 $92,503 
Real Estate47,297 48,031 45,837 44,202 43,213 
Business Credit30,180 30,087 28,930 28,246 26,535 
Commercial Banking8,430 8,683 9,008 9,459 10,045 
Other5,801 6,701 6,902 7,505 7,866 
Total average loans$209,937 $207,121 $199,874 $193,007 $180,162 
Credit-related statistics
Nonperforming assets (e)$801 $761 $779 $674 $866 
Net charge-offs (recoveries) - loans and leases$85 $100 $33 $11 $(1)
(a)See note (a) on page 13.
(b)Amounts are reported in net interest income and noninterest income.
(c)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.
(d)Represents net interest income and noninterest income 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)Presented as of period end.

THE PNC FINANCIAL SERVICES GROUP, INC.

Page 17
Table 18: Asset Management Group (Unaudited) (a)
Three months ended
March 31December 31September 30June 30March 31
Dollars in millions, except as noted20232022202220222022
Income Statement
Net interest income$127 $152 $165 $153 $138 
Noninterest income230 223 231 234 248 
Total revenue357 375 396 387 386 
Provision for (recapture of) credit losses9 17 4 5 2 
Noninterest expense280 291 274 270 251 
Pretax earnings68 67 118 112 133 
Income taxes 16 15 28 26 31 
Earnings$52 $52 $90 $86 $102 
Average Balance Sheet
Loans
Consumer
Residential real estate $9,174 $8,835 $8,430 $7,835 $6,989 
Other consumer4,156 4,388 4,640 4,633 4,541 
Total consumer 13,330 13,223 13,070 12,468 11,530 
Commercial1,246 1,291 1,328 1,560 1,848 
Total loans$14,576 $14,514 $14,398 $14,028 $13,378 
Total assets$14,997 $14,935 $14,820 $14,449 $13,801 
Deposits
Noninterest-bearing $1,846 $2,107 $2,286 $2,824 $3,458 
Interest-bearing26,337 25,651 27,054 28,839 29,830 
Total deposits$28,183 $27,758 $29,340 $31,663 $33,288 
Performance Ratios
Return on average assets1.41 %1.38 %2.41 %2.39 %3.00 %
Noninterest income to total revenue64 %59 %58 %60 %64 %
Efficiency78 %78 %69 %70 %65 %
Other Information
Nonperforming assets (b)$42 $56 $95 $114 $72 
Net charge-offs (recoveries) - loans and leases  $18 $(2)$(1)$2 
Brokerage account client assets (in billions) (b)$4 $4 $4 $4 $5 
Client Assets Under Administration (in billions) (b) (c)
Discretionary client assets under management$177 $173 $166 $167 $182 
Nondiscretionary client assets under administration156 152 148 153 165 
Total$333 $325 $314 $320 $347 
Discretionary client assets under management
PNC Private Bank$108 $105 $99 $103 $115 
Institutional Asset Management69 68 67 64 67 
Total$177 $173 $166 $167 $182 
(a)See note (a) on page 13.
(b)As of period end.
(c)Excludes brokerage account client assets.

THE PNC FINANCIAL SERVICES GROUP, INC.

Page 18
Glossary of Terms

2019 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).

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).

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.

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.

THE PNC FINANCIAL SERVICES GROUP, INC.

Page 19

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.

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.

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.

Nonperforming assets – Nonperforming assets include nonperforming loans, OREO and foreclosed 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.

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.

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.

Troubled debt restructuring (TDR) – A loan whose terms have been restructured in a manner that grants a concession to a borrower experiencing financial difficulties. On January 1, 2023, we adopted ASU 2022-02, which eliminated the accounting guidance for TDRs.

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.

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

THE PNC FINANCIAL SERVICES GROUP, INC.

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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.