April 15, 2026 - EX-99.2 - 8-K: Current report | The PNC Financial Services Group, Inc. (PNC)

Exhibit 99.2

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2026

(Unaudited)

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2026

(UNAUDITED)


Consolidated Results:			Page
Income Statement			1
Balance Sheet			2
Average Balance Sheet			3
Details of Net Interest Margin			4

Loans			5
Allowance for Credit Losses			6-7
Nonperforming Assets			8
Accruing Loans Past Due			9-10

Business Segment Results:
Descriptions			11
Period End Employees			11
Net Income and Revenue			12
Retail Banking			13-14
Corporate & Institutional Banking			15-16
Asset Management Group			17

Glossary of Terms			18-19

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

BUSINESS

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

ACQUISITION OF FIRSTBANK HOLDING COMPANY

On January 5, 2026, PNC completed its acquisition of FirstBank Holding Company, including its banking subsidiary FirstBank. At close, FirstBank had $26 billion of assets, $16 billion of loans and $23 billion of deposits. Effective January 5, 2026, FirstBank’s financial results are included in PNC’s consolidated operations. PNC's previously disclosed amounts do not include FirstBank amounts. PNC's first quarter 2026 Form 10-Q will include additional information on this acquisition.

PRESENTATION OF LOAN CLASSES

Effective January 1, 2026, PNC updated its defined loan classes (classes of financing receivables) as follows: (i) equipment lease financing loans were reclassified to the Commercial and industrial loan class based on similarities in the manner in which credit risk is monitored and assessed within these portfolios, as well as materiality considerations, and (ii) education loans were reclassified to the Other consumer loan class based on materiality considerations. All impacted tables have been updated accordingly, and prior periods have been adjusted to conform with the current presentation.


THE PNC FINANCIAL SERVICES GROUP, INC.
Cross Reference Index to First Quarter 2026 Financial Supplement (Unaudited)
Financial Supplement Table Reference

Table	Description	Page
1	Consolidated Income Statement	1
2	Consolidated Balance Sheet	2
3	Average Consolidated Balance Sheet	3
4	Details of Net Interest Margin	4

5	Details of Loans	5
6	Change in Allowance for Loan and Lease Losses	6
7	Components of the Provision for Credit Losses	7
8	Allowance for Credit Losses by Loan Class	7
9	Nonperforming Assets by Type	8
10	Change in Nonperforming Assets	8
11	Accruing Loans Past Due 30 to 59 Days	9
12	Accruing Loans Past Due 60 to 89 Days	9
13	Accruing Loans Past Due 90 Days or More	10
14	Period End Employees	11
15	Summary of Business Segment Net Income and Revenue	12
16	Retail Banking	13-14
17	Corporate & Institutional Banking	15-16
18	Asset Management Group	17


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 1

Table 1: Consolidated Income Statement (Unaudited)


	Three months ended
	March 31			December 31			September 30			June 30			March 31
In millions, except per share data	2026			2025			2025			2025			2025
Interest Income
Loans	$	4,792		$	4,640		$	4,751		$	4,609		$	4,472
Investment securities	1,202			1,188			1,211			1,151			1,124
Other	450			552			565			510			534
Total interest income	6,444			6,380			6,527			6,270			6,130
Interest Expense
Deposits	1,735			1,864			1,980			1,845			1,808
Borrowed funds	748			785			899			870			846
Total interest expense	2,483			2,649			2,879			2,715			2,654
Net interest income	3,961			3,731			3,648			3,555			3,476
Noninterest Income
Asset management and brokerage	420			411			404			391			391
Capital markets and advisory	463			489			432			321			306
Card and cash management	738			733			737			737			692
Lending and deposit services	340			342			335			317			316
Residential and commercial mortgage	118			148			161			128			134




Other (a) (b)	125			217			198			212			137
Total noninterest income	2,204			2,340			2,267			2,106			1,976
Total revenue	6,165			6,071			5,915			5,661			5,452
Provision For Credit Losses	210			139			167			254			219
Noninterest Expense
Personnel	2,106			2,033			1,970			1,889			1,890
Occupancy	262			247			235			235			245
Equipment	415			412			416			394			384
Marketing	87			101			93			99			85
Other	898			810			747			766			783
Total noninterest expense	3,768			3,603			3,461			3,383			3,387
Income before income taxes and noncontrolling interests	2,187			2,329			2,287			2,024			1,846
Income taxes	415			296			465			381			347




Net income	1,772			2,033			1,822			1,643			1,499
Less: Net income attributable to noncontrolling interests	12			13			14			16			18
Preferred stock dividends (c)	73			83			71			83			71
Preferred stock discount accretion and redemptions	1			3			2			2			2
Net income attributable to common shareholders	$	1,686		$	1,934		$	1,735		$	1,542		$	1,408
Earnings Per Common Share
Basic	$	4.13		$	4.88		$	4.36		$	3.86		$	3.52


Diluted	$	4.13		$	4.88		$	4.35		$	3.85		$	3.51


Average Common Shares Outstanding
Basic	405			394			396			397			398
Diluted	405			394			396			397			398
Efficiency	61		%	59		%	59		%	60		%	62		%
Noninterest income to total revenue	36		%	39		%	38		%	37		%	36		%
Effective tax rate (d)	19.0		%	12.7		%	20.3		%	18.8		%	18.8		%

(a)Includes net gains (losses) on sale of securities of $28 million, $(7) million, less than $1 million, less than $1 million and $(2) million for the quarters ended March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025 and March 31, 2025.

(b)Includes Visa derivative fair value adjustments of $(32) million, $(41) million, $(35) million, $2 million and $(40) million for the quarters ended March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025 and March 31, 2025. These adjustments are primarily related to escrow funding and the extension of anticipated litigation resolution timing.

(c)Dividends are payable quarterly, other than Series S preferred stock, which is 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 31		December 31		September 30		June 30		March 31
In millions, except par value	2026		2025		2025		2025		2025
Assets
Cash and due from banks	$	5,646	$	6,777	$	5,553	$	5,939	$	6,102
Interest-earning deposits with banks (a)	26,053		32,936		33,318		24,455		32,298
Loans held for sale (b)	1,332		1,939		1,104		1,837		1,236
Investment securities – available-for-sale	71,072		68,135		68,297		67,136		63,318
Investment securities – held-to-maturity	72,040		70,105		73,226		75,212		74,457
Loans (b)	360,923		331,481		326,616		326,340		318,850
Allowance for loan and lease losses	(4,663)		(4,410)		(4,478)		(4,523)		(4,544)
Net loans	356,260		327,071		322,138		321,817		314,306
Equity investments	10,512		10,790		9,972		9,755		9,448
Mortgage servicing rights	3,816		3,659		3,627		3,467		3,564
Goodwill	13,282		10,959		10,962		10,932		10,932
Other (b)	43,015		41,201		40,570		38,557		39,061
Total assets	$	603,028	$	573,572	$	568,767	$	559,107	$	554,722
Liabilities
Deposits
Noninterest-bearing	$	99,297	$	91,748	$	91,207	$	93,253	$	92,369
Interest-bearing (b)	358,351		349,118		341,542		333,443		330,546
Total deposits	457,648		440,866		432,749		426,696		422,915
Borrowed funds
Federal Home Loan Bank advances	21,417		13,000		16,100		18,000		18,000
Senior debt	38,021		38,642		38,695		35,750		34,987
Subordinated debt	4,502		3,016		3,512		3,490		4,163
Other (b)	2,726		2,443		4,037		3,184		3,572
Total borrowed funds	66,666		57,101		62,344		60,424		60,722
Allowance for unfunded lending related commitments	832		818		775		759		674
Accrued expenses and other liabilities (b)	14,206		14,151		13,861		13,573		13,960
Total liabilities	539,352		512,936		509,729		501,452		498,271
Equity
Preferred stock (c)	—		—		—		—		—
Common stock - $5 par value
Authorized 800,000,000 shares, issued 557,213,012; 543,497,966; 543,412,079; 543,412,101 and 543,310,646 shares	2,786		2,717		2,717		2,717		2,717
Capital surplus	21,926		18,922		18,859		18,809		18,731
Retained earnings	64,256		63,266		62,008		60,951		60,051
Accumulated other comprehensive income (loss)	(3,773)		(3,408)		(4,077)		(4,682)		(5,237)
Common stock held in treasury at cost: 155,167,491; 153,084,091; 151,030,533; 149,426,326 and 147,519,772 shares	(21,568)		(20,912)		(20,517)		(20,188)		(19,857)
Total shareholders’ equity	63,627		60,585		58,990		57,607		56,405
Noncontrolling interests	49		51		48		48		46
Total equity	63,676		60,636		59,038		57,655		56,451
Total liabilities and equity	$	603,028	$	573,572	$	568,767	$	559,107	$	554,722

(a)Amounts include balances held with the Federal Reserve Bank of $25.3 billion, $32.0 billion, $32.7 billion, $23.9 billion and $31.9 billion as of March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025 and March 31, 2025, respectively.

(b)Amounts include assets and liabilities for which PNC has elected the fair value option. Our 2025 Form 10-K included, and our first quarter 2026 Form 10-Q will include, additional information regarding these items.

(c)Par value less than $0.5 million at each date.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 3


Table 3: Average Consolidated Balance Sheet (Unaudited) (a) (b)
	Three months ended
	March 31		December 31		September 30		June 30		March 31
In millions	2026		2025		2025		2025		2025
Assets
Interest-earning assets:
Investment securities
Securities available-for-sale
Residential mortgage-backed	$	34,652	$	33,564	$	34,752	$	34,567	$	33,793
U.S. Treasury and government agencies	28,491		28,119		26,799		25,372		24,382
Other	8,505		8,202		8,293		7,818		7,505
Total securities available-for-sale	71,648		69,885		69,844		67,757		65,680
Securities held-to-maturity
Residential mortgage-backed	45,078		42,925		42,667		40,440		40,045
U.S. Treasury and government agencies	20,683		23,426		25,540		26,900		28,931
Other	7,117		5,983		6,384		6,838		7,525
Total securities held-to-maturity	72,878		72,334		74,591		74,178		76,501
Total investment securities	144,526		142,219		144,435		141,935		142,181
Loans
Commercial and industrial	211,358		198,726		195,903		191,526		184,025
Commercial real estate	34,367		30,173		30,850		31,838		33,067
Consumer	55,483		54,884		54,238		53,851		53,421
Residential real estate	49,675		44,146		44,941		45,539		46,111
Total loans	350,883		327,929		325,932		322,754		316,624
Interest-earning deposits with banks (c)	32,612		32,009		35,003		31,570		34,614
Other interest-earning assets	12,457		18,618		12,759		11,348		10,147
Total interest-earning assets	540,478		520,775		518,129		507,607		503,566
Noninterest-earning assets	60,984		55,071		53,404		54,079		52,811
Total assets	$	601,462	$	575,846	$	571,533	$	561,686	$	556,377
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	85,196	$	78,742	$	75,890	$	70,909	$	73,063
Demand	137,558		132,591		128,962		126,222		125,046
Savings	100,940		97,188		96,627		97,028		97,409
Time deposits	35,579		36,180		37,593		35,674		32,763
Total interest-bearing deposits	359,273		344,701		339,072		329,833		328,281
Borrowed funds
Federal Home Loan Bank advances	16,616		14,671		17,615		18,319		19,703
Senior debt	37,383		38,623		38,012		36,142		34,933
Subordinated debt	4,200		3,299		3,616		3,686		4,320
Other	4,675		3,722		7,070		7,146		5,549
Total borrowed funds	62,874		60,315		66,313		65,293		64,505
Total interest-bearing liabilities	422,147		405,016		405,385		395,126		392,786
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits	99,081		94,834		92,756		93,142		92,367
Accrued expenses and other liabilities	16,944		16,646		15,624		16,942		16,214
Equity	63,290		59,350		57,768		56,476		55,010
Total liabilities and equity	$	601,462	$	575,846	$	571,533	$	561,686	$	556,377

(a)Calculated using average daily balances.

(b)Nonaccrual loans are included in loans, net of unearned income. The impact of financial derivatives used in interest rate risk management is included in the interest income/expense and average yields/rates of the related assets and liabilities. Fair value adjustments related to hedged items are included in noninterest-earning assets and noninterest-bearing liabilities. Average balances of securities are based on amortized historical cost (excluding adjustments to fair value, which are included in other assets).

(c)Amounts include average balances held with the Federal Reserve Bank of $31.8 billion, $31.3 billion, $34.2 billion, $30.8 billion and $34.2 billion for the three months ended March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025 and March 31, 2025, respectively.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 4


Table 4: Details of Net Interest Margin (Unaudited)
	Three months ended
	March 31		December 31		September 30		June 30		March 31
	2026		2025		2025		2025		2025
Average yields/rates (a)
Yield on interest-earning assets
Investment securities
Securities available-for-sale
Residential mortgage-backed	3.72	%	3.80	%	3.82	%	3.76	%	3.68	%
U.S. Treasury and government agencies	4.04	%	4.29	%	4.58	%	4.55	%	4.50	%
Other	4.00	%	3.97	%	3.91	%	3.69	%	3.65	%
Total securities available-for-sale	3.88	%	4.02	%	4.12	%	4.05	%	3.98	%
Securities held-to-maturity
Residential mortgage-backed	3.20	%	3.13	%	3.07	%	2.90	%	2.84	%
U.S. Treasury and government agencies	1.59	%	1.50	%	1.51	%	1.53	%	1.49	%
Other	4.23	%	4.28	%	4.35	%	4.34	%	4.39	%
Total securities held-to-maturity	2.84	%	2.70	%	2.65	%	2.54	%	2.48	%
Total investment securities	3.36	%	3.35	%	3.36	%	3.26	%	3.17	%
Loans
Commercial and industrial	5.43	%	5.55	%	5.78	%	5.72	%	5.71	%
Commercial real estate	5.79	%	5.92	%	6.06	%	6.01	%	5.94	%
Consumer	6.99	%	7.09	%	7.18	%	7.11	%	7.14	%
Residential real estate	3.97	%	3.74	%	3.75	%	3.76	%	3.78	%
Total loans	5.50	%	5.60	%	5.76	%	5.70	%	5.70	%
Interest-earning deposits with banks	3.64	%	3.92	%	4.34	%	4.38	%	4.42	%
Other interest-earning assets	4.95	%	4.95	%	5.51	%	5.66	%	6.02	%
Total yield on interest-earning assets	4.80	%	4.86	%	4.99	%	4.93	%	4.90	%
Rate on interest-bearing liabilities
Interest-bearing deposits
Money market	2.53	%	2.77	%	3.07	%	3.01	%	2.99	%
Demand	1.61	%	1.78	%	1.96	%	1.89	%	1.87	%
Savings	1.49	%	1.62	%	1.68	%	1.63	%	1.64	%
Time deposits	3.26	%	3.53	%	3.67	%	3.64	%	3.69	%
Total interest-bearing deposits	1.96	%	2.14	%	2.32	%	2.24	%	2.23	%
Borrowed funds
Federal Home Loan Bank advances	3.98	%	4.41	%	4.73	%	4.74	%	4.73	%
Senior debt	5.14	%	5.55	%	5.85	%	5.77	%	5.64	%
Subordinated debt	5.12	%	5.52	%	5.81	%	5.69	%	5.54	%
Other	4.14	%	4.02	%	4.19	%	4.24	%	4.38	%
Total borrowed funds	4.76	%	5.18	%	5.38	%	5.31	%	5.25	%
Total rate on interest-bearing liabilities	2.37	%	2.59	%	2.81	%	2.74	%	2.72	%
Interest rate spread	2.43	%	2.27	%	2.18	%	2.19	%	2.18	%
Benefit from use of noninterest-bearing sources (b)	0.52	%	0.57	%	0.61	%	0.61	%	0.60	%
Net interest margin	2.95	%	2.84	%	2.79	%	2.80	%	2.78	%

(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, 2026, December 31, 2025, September 30, 2025, June 30, 2025 and March 31, 2025 were $29 million, $31 million, $30 million, $28 million and $28 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 31		December 31		September 30		June 30		March 31
In millions	2026		2025		2025		2025		2025
Commercial
Commercial and industrial
Financial services	$	42,224	$	37,592	$	33,939	$	32,378	$	29,815
Manufacturing	34,977		30,623		31,044		31,958		29,742
Service providers	27,303		25,552		25,159		24,373		24,206
Wholesale trade	21,146		19,843		19,917		20,045		19,758
Real estate related (a)	17,138		15,275		15,405		15,214		15,370
Technology, media and telecommunications	13,613		12,324		11,594		11,263		10,199
Retail trade	12,973		12,073		12,408		12,970		11,986
Transportation and warehousing	9,872		9,258		8,156		7,865		7,816
Health care	9,526		9,135		9,851		9,873		10,195
Rental and leasing	9,281		9,074		8,940		8,919		8,302
Other industries	23,137		22,149		20,681		20,900		19,880
Total commercial and industrial	221,190		202,898		197,094		195,758		187,269
Commercial real estate	34,770		29,565		30,281		31,250		32,307
Total commercial	255,960		232,463		227,375		227,008		219,576
Consumer
Residential real estate	49,567		43,760		44,637		45,257		45,890
Home equity	26,223		25,941		25,942		25,928		25,846
Automobile	16,325		16,591		16,272		15,892		15,324
Credit card	7,069		7,014		6,636		6,570		6,550
Other consumer	5,779		5,712		5,754		5,685		5,664
Total consumer	104,963		99,018		99,241		99,332		99,274
Total loans	$	360,923	$	331,481	$	326,616	$	326,340	$	318,850

(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 31			December 31			September 30			June 30			March 31
Dollars in millions	2026			2025			2025			2025			2025
Allowance for loan and lease losses
Beginning balance	$	4,410		$	4,478		$	4,523		$	4,544		$	4,486
Acquisition PCD reserves	93			—			—			—			—
Acquisition PSL reserves (a)	229			—			—			—			—
Adjusted beginning balance	4,732			4,478			4,523			4,544			4,486
Gross charge-offs:
Commercial and industrial	(129)			(85)			(97)			(99)			(113)
Commercial real estate	(19)			(15)			(19)			(64)			(18)
Residential real estate	(1)			—			(6)			—			(2)
Home equity	(10)			(7)			(10)			(9)			(9)
Automobile	(31)			(33)			(32)			(30)			(35)
Credit card	(74)			(73)			(76)			(81)			(90)
Other consumer	(45)			(43)			(44)			(41)			(45)
Acquired loans (b)	(45)			—			—			—			—
Total gross charge-offs	(354)			(256)			(284)			(324)			(312)
Recoveries:
Commercial and industrial	33			33			38			53			42
Commercial real estate	5			3			6			8			5
Residential real estate	2			3			3			3			2
Home equity	8			8			7			12			8
Automobile	20			22			25			24			23
Credit card	20			15			17			15			15
Other consumer	13			10			9			11			12
Total recoveries	101			94			105			126			107
Net (charge-offs) / recoveries:
Commercial and industrial	(96)			(52)			(59)			(46)			(71)
Commercial real estate	(14)			(12)			(13)			(56)			(13)
Residential real estate	1			3			(3)			3			—
Home equity	(2)			1			(3)			3			(1)
Automobile	(11)			(11)			(7)			(6)			(12)
Credit card	(54)			(58)			(59)			(66)			(75)
Other consumer	(32)			(33)			(35)			(30)			(33)


Acquired loans	(45)			—			—			—			—
Total net (charge-offs)	(253)			(162)			(179)			(198)			(205)
Provision for credit losses (c)	188			93			136			171			260
Other	(4)			1			(2)			6			3
Ending balance	$	4,663		$	4,410		$	4,478		$	4,523		$	4,544
Supplemental Information
Net charge-offs
Commercial net charge-offs	$	(120)		$	(64)		$	(72)		$	(102)		$	(84)
Consumer net charge-offs	(133)			(98)			(107)			(96)			(121)
Total net charge-offs	(253)			(162)			(179)			(198)			(205)
Net charge-offs to average loans (annualized)	0.29		%	0.20		%	0.22		%	0.25		%	0.26		%
Commercial	0.18		%	0.11		%	0.13		%	0.18		%	0.16		%
Consumer	0.38		%	0.39		%	0.43		%	0.39		%	0.49		%

(a)On January 1, 2026, we adopted ASU 2025-08 - Financial Instruments - Credit Losses (Topic 326): Purchased Loans, and established the initial ACL for purchased seasoned loans (PSLs). Our first quarter 2026 Form 10-Q will include additional information on the adoption of this ASU.

(b)Primarily represents the charge-off of certain loans previously charged off by FirstBank, which were written up upon acquisition to unpaid principal balance as required by purchase accounting.

(c)See Table 7 for the components of the Provision for credit losses being reported on the Consolidated Income Statement.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 7

Allowance for Credit Losses (Unaudited) (Continued)

Table 7: Components of the Provision for Credit Losses


	Three months ended
	March 31		December 31		September 30		June 30		March 31
In millions	2026		2025		2025		2025		2025
Provision for credit losses
Loans and leases	$	188	$	93	$	136	$	171	$	260
Unfunded lending related commitments	14		43		16		84		(46)
Investment securities	—		—		(1)		(1)		3
Other financial assets	8		3		16		—		2
Total provision for credit losses	$	210	$	139	$	167	$	254	$	219

Table 8: Allowance for Credit Losses by Loan Class (a)


	March 31, 2026						December 31, 2025						March 31, 2025
Dollars in millions	Allowance Amount		Total Loans		% of Total Loans		Allowance Amount		Total Loans		% of Total Loans		Allowance Amount		Total Loans		% of Total Loans
Allowance for loan and lease losses
Commercial
Commercial and industrial	$	2,149	$	221,190	0.97	%	$	2,032	$	202,898	1.00	%	$	1,772	$	187,269	0.95	%
Commercial real estate	1,120		34,770		3.22	%	1,057		29,565		3.58	%	1,433		32,307		4.44	%
Total commercial	3,269		255,960		1.28	%	3,089		232,463		1.33	%	3,205		219,576		1.46	%
Consumer
Residential real estate	92		49,567		0.19	%	44		43,760		0.10	%	43		45,890		0.09	%
Home equity	275		26,223		1.05	%	271		25,941		1.04	%	286		25,846		1.11	%
Automobile	163		16,325		1.00	%	158		16,591		0.95	%	167		15,324		1.09	%
Credit card	647		7,069		9.15	%	632		7,014		9.01	%	621		6,550		9.48	%
Other consumer	217		5,779		3.75	%	216		5,712		3.78	%	222		5,664		3.92	%
Total consumer	1,394		104,963		1.33	%	1,321		99,018		1.33	%	1,339		99,274		1.35	%
Total	4,663		$	360,923	1.29	%	4,410		$	331,481	1.33	%	4,544		$	318,850	1.43	%
Allowance for unfunded lending related commitments	832						818						674
Allowance for credit losses	$	5,495					$	5,228					$	5,218

Supplemental Information
Allowance for credit losses to total loans					1.52	%					1.58	%					1.64	%
Commercial					1.55	%					1.62	%					1.70	%
Consumer					1.46	%					1.47	%					1.50	%

(a) Excludes allowances for investment securities and other financial assets, which together totaled $103 million, $99 million and $91 million at March 31, 2026, December 31, 2025 and March 31, 2025, respectively.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 8

Details of Nonperforming Assets (Unaudited)

Table 9: Nonperforming Assets by Type


	March 31			December 31			September 30			June 30			March 31
Dollars in millions	2026			2025			2025			2025			2025
Nonperforming loans
Commercial
Commercial and industrial
Manufacturing	$	224		$	98		$	75		$	73		$	98
Service providers	136			116			119			126			143
Wholesale trade	97			161			96			19			16
Retail trade	79			194			36			64			121
Transportation and warehousing	71			62			68			68			48
Health care	42			47			45			54			77
Technology, media and telecommunications	25			27			83			31			52
Real estate related (a)	25			27			20			24			25
Rental and leasing	5			6			13			16			17
Other industries	46			46			64			23			19
Total commercial and industrial	750			784			619			498			616
Commercial real estate	630			574			663			753			851
Total commercial	1,380			1,358			1,282			1,251			1,467
Consumer (b)
Residential real estate	316			320			326			325			287
Home equity	447			439			431			436			437
Automobile	85			83			82			80			83
Credit card	12			13			13			13			15
Other consumer	3			5			3			3			3
Total consumer	863			860			855			857			825
Total nonperforming loans (c)	2,243			2,218			2,137			2,108			2,292
OREO, foreclosed and other assets (d)	139			143			162			33			32
Total nonperforming assets	2,382			2,361			2,299			2,141			2,324
Nonperforming loans to total loans	0.62		%	0.67		%	0.65		%	0.65		%	0.72		%
Nonperforming assets to total loans, OREO, foreclosed and other assets (d)	0.66		%	0.71		%	0.70		%	0.66		%	0.73		%
Nonperforming assets to total assets	0.40		%	0.41		%	0.40		%	0.38		%	0.42		%
Allowance for loan and lease losses to nonperforming loans	208		%	199		%	210		%	215		%	198		%

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

(b)Excludes most unsecured consumer loans and lines of credit, which are charged off after 120 to 180 days past due and are not placed on nonperforming status.

(c)Nonperforming loans exclude certain government insured or guaranteed loans, loans held for sale and loans accounted for under the fair value option.

(d)Amounts include nonaccrual servicing advances primarily to single asset/single borrower trusts with commercial real estate as collateral totaling $103 million, $105 million and $127 million at March 31, 2026, December 31, 2025 and September 30, 2025, respectively.

Table 10: Change in Nonperforming Assets


	Three months ended
	March 31		December 31		September 30		June 30		March 31
Dollars in millions	2026		2025		2025		2025		2025
Beginning balance	$	2,361	$	2,299	$	2,141	$	2,324	$	2,357

New nonperforming assets	539		569		653		367		477
Charge-offs and valuation adjustments	(152)		(91)		(103)		(149)		(135)
Principal activity, including paydowns and payoffs	(343)		(248)		(299)		(312)		(156)
Asset sales and transfers to loans held for sale	(9)		(33)		(13)		(5)		(77)
Returned to performing status	(95)		(135)		(80)		(84)		(142)
Acquired nonperforming assets	81		—		—		—		—
Ending balance	$	2,382	$	2,361	$	2,299	$	2,141	$	2,324


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 9

Accruing Loans Past Due (Unaudited)

Table 11: Accruing Loans Past Due 30 to 59 Days (a)



	March 31			December 31			September 30			June 30			March 31
Dollars in millions	2026			2025			2025			2025			2025
Commercial
Commercial and industrial	$	283		$	182		$	161		$	133		$	257
Commercial real estate	90			14			9			43			6
Total commercial	373			196			170			176			263
Consumer
Residential real estate
Non government insured	221			170			166			169			208
Government insured	63			73			79			78			79
Home equity	73			70			73			62			71
Automobile	59			74			70			74			73
Credit card	41			45			45			42			45
Other consumer	33			32			32			34			35
Total consumer	490			464			465			459			511
Total	$	863		$	660		$	635		$	635		$	774
Supplemental Information
Total accruing loans past due 30-59 days to total loans	0.24		%	0.20		%	0.19		%	0.19		%	0.24		%
Commercial	0.15		%	0.08		%	0.07		%	0.08		%	0.12		%
Consumer	0.47		%	0.47		%	0.47		%	0.46		%	0.51		%

(a)Excludes loans held for sale.

Table 12: Accruing Loans Past Due 60 to 89 Days (a)


	March 31			December 31			September 30			June 30			March 31
Dollars in millions	2026			2025			2025			2025			2025
Commercial
Commercial and industrial	$	50		$	103		$	67		$	101		$	45
Commercial real estate	17			98			—			6			—
Total commercial	67			201			67			107			45
Consumer
Residential real estate
Non government insured	69			57			48			52			93
Government insured	41			44			39			39			39
Home equity	32			30			27			28			28
Automobile	15			18			17			19			19
Credit card	31			32			31			32			33
Other consumer	18			21			22			20			21
Total consumer	206			202			184			190			233
Total	$	273		$	403		$	251		$	297		$	278
Supplemental Information
Total accruing loans past due 60-89 days to total loans	0.08		%	0.12		%	0.08		%	0.09		%	0.09		%
Commercial	0.03		%	0.09		%	0.03		%	0.05		%	0.02		%
Consumer	0.20		%	0.20		%	0.19		%	0.19		%	0.23		%

(a)Excludes loans held for sale.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 10

Accruing Loans Past Due (Unaudited) (Continued)

Table 13: Accruing Loans Past Due 90 Days or More (a)


	March 31			December 31			September 30			June 30			March 31
Dollars in millions	2026			2025			2025			2025			2025
Commercial
Commercial and industrial	68			57			71			79			75
Commercial real estate	1			—			1			—			—
Total commercial	69			57			72			79			75
Consumer
Residential real estate
Non government insured	50			46			38			53			53
Government insured	195			163			126			129			130
Automobile	5			5			4			5			7
Credit card	64			65			63			64			71
Other consumer	39			44			44			41			43
Total consumer	353			323			275			292			304
Total	$	422		$	380		$	347		$	371		$	379
Supplemental Information
Total accruing loans past due 90 days or more to total loans	0.12		%	0.11		%	0.11		%	0.11		%	0.12		%
Commercial	0.03		%	0.02		%	0.03		%	0.03		%	0.03		%
Consumer	0.34		%	0.33		%	0.28		%	0.29		%	0.31		%
Total accruing loans past due	$	1,558		$	1,443		$	1,233		$	1,303		$	1,431
Commercial	$	509		$	454		$	309		$	362		$	383
Consumer	$	1,049		$	989		$	924		$	941		$	1,048
Total accruing loans past due to total loans	0.43		%	0.44		%	0.38		%	0.40		%	0.45		%
Commercial	0.20		%	0.20		%	0.14		%	0.16		%	0.17		%
Consumer	1.00		%	1.00		%	0.93		%	0.95		%	1.06		%

(a)Excludes loans held for sale.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 11

Business Segment Descriptions (Unaudited)

Retail Banking provides deposit, lending, brokerage, insurance services, investment management and cash management products and services to consumer and small business customers who are serviced through our coast-to-coast branch network, digital channels, ATMs, or through our phone-based customer contact centers. Deposit products include checking, savings and money market accounts and time deposits. Lending products include residential mortgages, home equity loans and lines of credit, auto loans, credit cards, 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. PNC Wealth Management offers brokerage, investment management and cash management products and services which include managed, education, retirement and trust accounts.

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

Asset Management Group provides private banking for high net worth and ultra high net worth clients and institutional asset management. The Asset Management Group is composed of two operating units:

•PNC Private Bank provides products and services to emerging affluent, high net worth and ultra high net worth individuals and their families, including investment and retirement planning, customized investment management, credit and cash management solutions, trust management and administration. In addition, multi-generational family planning services are also provided to ultra high net worth individuals and their families, which include estate, financial, tax, fiduciary and customized performance reporting.

•Institutional Asset Management provides outsourced chief investment officer, custody, cash and fixed income client solutions and retirement plan fiduciary investment services to institutional clients, including corporations, healthcare systems, insurance companies, unions, municipalities and non-profits.

Table 14: Period End Employees


	March 31	December 31	September 30	June 30	March 31
	2026	2025	2025	2025	2025
Full-time employees
Retail Banking	28,046	26,168	26,126	26,291	27,108
Other full-time employees	28,320	27,691	27,397	26,884	26,360
Total full-time employees	56,366	53,859	53,523	53,175	53,468
Part-time employees
Retail Banking	1,389	1,427	1,367	1,465	1,460
Other part-time employees	46	47	48	407	48
Total part-time employees	1,435	1,474	1,415	1,872	1,508
Total	57,801	55,333	54,938	55,047	54,976


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 12

Table 15: Summary of Business Segment Net Income and Revenue (Unaudited) (a)


	Three months ended
	March 31		December 31		September 30		June 30		March 31
In millions	2026		2025		2025		2025		2025
Net Income
Retail Banking	$	1,320	$	1,241	$	1,324	$	1,359	$	1,121
Corporate & Institutional Banking	1,400		1,514		1,459		1,229		1,244
Asset Management Group	118		121		117		129		105
Other	(1,078)		(856)		(1,092)		(1,090)		(989)
Net income excluding noncontrolling interests	$	1,760	$	2,020	$	1,808	$	1,627	$	1,481

Revenue
Retail Banking	$	3,968	$	3,759	$	3,806	$	3,756	$	3,542
Corporate & Institutional Banking	2,982		3,066		2,909		2,720		2,630
Asset Management Group	451		440		430		423		417
Other	(1,236)		(1,194)		(1,230)		(1,238)		(1,137)
Total revenue	$	6,165	$	6,071	$	5,915	$	5,661	$	5,452

(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 13

Table 16: Retail Banking (Unaudited) (a)


	Three months ended
	March 31			December 31				September 30			June 30			March 31
Dollars in millions	2026			2025				2025			2025			2025
Income Statement
Net interest income	$	3,198		$	2,989			$	3,016		$	2,974		$	2,836
Noninterest income	770			770				790			782			706
Total revenue	3,968			3,759				3,806			3,756			3,542
Provision for credit losses	124			155				126			83			168
Noninterest expense
Personnel	571			535				529			539			538
Segment allocations (b)	1,088			1,020				979			978			967
Depreciation and amortization	132			95				97			87			86
Other (c)	324			327				336			286			311
Total noninterest expense	2,115			1,977				1,941			1,890			1,902
Pre-tax earnings	1,729			1,627				1,739			1,783			1,472
Income taxes	402			379				406			414			342
Noncontrolling interests	7			7				9			10			9
Earnings	$	1,320		$	1,241		752	$	1,324		$	1,359		$	1,121
Average Balance Sheet
Loans held for sale	$	562		$	699			$	785		$	874		$	860
Loans
Consumer
Residential real estate	$	38,939		$	33,336			$	34,043		$	34,647		$	35,197
Home equity	24,913			24,559				24,551			24,551			24,549
Automobile	16,499			16,403				16,035			15,738			15,240
Credit card	6,912			6,754				6,561			6,483			6,568
Other consumer	3,257			3,320				3,334			3,342			3,391
Total consumer	90,520			84,372				84,524			84,761			84,945
Commercial	20,423			12,603				12,353			12,725			12,841
Total loans	$	110,943		$	96,975			$	96,877		$	97,486		$	97,786
Total assets	$	130,616		$	113,714			$	114,146		$	114,061		$	115,176
Deposits
Noninterest-bearing	$	58,714		$	52,125			$	52,604		$	52,353		$	51,307
Interest-bearing	209,519			191,941				190,652			191,190			189,563
Total deposits	$	268,233		$	244,066			$	243,256		$	243,543		$	240,870
Performance Ratios
Return on average assets	4.10		%	4.33		%		4.60		%	4.78		%	3.95		%
Noninterest income to total revenue	19		%	20		%		21		%	21		%	20		%
Efficiency	53		%	53		%		51		%	50		%	54		%

(continued on following page)


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 14

Retail Banking (Unaudited) (Continued)


	Three months ended
	March 31			December 31			September 30			June 30			March 31
Dollars in millions, except as noted	2026			2025			2025			2025			2025
Supplemental Noninterest Income Information
Asset management and brokerage	$	161		$	155		$	154		$	150		$	152
Card and cash management	$	322		$	328		$	334		$	328		$	296
Lending and deposit services	$	200		$	199		$	199		$	190		$	184
Residential and commercial mortgage	$	63		$	78		$	89		$	61		$	65

Residential Mortgage Information
Residential mortgage servicing statistics (d)
Serviced portfolio balance (in billions) (e)	$	212		$	198		$	199		$	189		$	193
MSR asset value (e)	$	2,786		$	2,638		$	2,622		$	2,457		$	2,523
Servicing income:
Servicing fees, net (f)	$	68		$	63		$	60		$	60		$	71
Mortgage servicing rights valuation, net of economic hedge	$	(27)		$	(5)		$	18		$	2		$	(4)
Residential mortgage loan statistics
Loan origination volume (in billions)	$	1.5		$	1.6		$	1.5		$	1.7		$	1.0
Loan sale margin percentage	2.25		%	1.88		%	1.67		%	0.91		%	0.58		%
Other Information


Credit-related statistics
Nonperforming assets (e)	$	932		$	840		$	827		$	812		$	804
Net charge-offs - loans and leases	$	118		$	116		$	126		$	120		$	144
Other statistics
Branches (e)(g)	2,315			2,224			2,219			2,218			2,217
Brokerage account client assets (in billions) (e)(h)	$	91		$	91		$	89		$	87		$	84

(a)See note (a) on page 12.

(b)Represents expense allocations for corporate overhead services used by each business segment; primarily comprised of technology, human resources and occupancy-related allocations.

(c)Other is primarily comprised of other direct expenses including outside services and equipment expense.

(d)Represents mortgage loan servicing balances for third parties and the related income.

(e)Presented as of period end.

(f)Servicing fees net of impact of decrease in MSR value due to passage of time, which includes the impact from regularly scheduled loan principal payments, prepayments and loans paid off during the period.

(g)Reflects all branches excluding standalone mortgage offices and satellite offices (e.g., drive-ups, electronic branches and retirement centers) that provide limited products and/or services.

(h)Includes cash and money market balances.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 15

Table 17: Corporate & Institutional Banking (Unaudited) (a)


	Three months ended
	March 31			December 31			September 30			June 30			March 31
Dollars in millions	2026			2025			2025			2025			2025
Income Statement
Net interest income	$	1,838		$	1,856		$	1,777		$	1,698		$	1,652
Noninterest income	1,144			1,210			1,132			1,022			978
Total revenue	2,982			3,066			2,909			2,720			2,630
Provision for credit losses	77			14			44			184			49
Noninterest expense
Personnel	460			472			403			370			376
Segment allocations (b)	424			422			387			381			383
Depreciation and amortization	46			55			46			49			51
Other (c)	146			158			140			150			146
Total noninterest expense	1,076			1,107			976			950			956
Pre-tax earnings	1,829			1,945			1,889			1,586			1,625
Income taxes	424			425			425			352			377
Noncontrolling interests	5			6			5			5			4
Earnings	$	1,400		$	1,514		$	1,459		$	1,229		$	1,244
Average Balance Sheet
Loans held for sale	$	665		$	632		$	691		$	775		$	255
Loans
Commercial
Commercial and industrial	$	194,711		$	185,195		$	182,484		$	177,630		$	170,071
Commercial real estate	28,802			29,374			30,032			30,962			32,151
Total commercial	223,513			214,569			212,516			208,592			202,222
Consumer	3			2			2			4			3
Total loans	$	223,516		$	214,571		$	212,518		$	208,596		$	202,225
Total assets	$	249,789		$	241,169		$	238,338		$	234,391		$	227,069
Deposits
Noninterest-bearing	$	38,959		$	41,308		$	38,732		$	39,196		$	39,501
Interest-bearing	122,219			122,457			116,460			107,275			108,503
Total deposits	$	161,178		$	163,765		$	155,192		$	146,471		$	148,004
Performance Ratios
Return on average assets	2.27		%	2.49		%	2.43		%	2.10		%	2.22		%
Noninterest income to total revenue	38		%	39		%	39		%	38		%	37		%
Efficiency	36		%	36		%	34		%	35		%	36		%

(continued on following page)


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 16

Corporate & Institutional Banking (Unaudited) (Continued)


	Three months ended
	March 31		December 31		September 30		June 30		March 31
Dollars in millions	2026		2025		2025		2025		2025
Other Information
Consolidated revenue from:
Treasury Management (d)	$	1,169	$	1,197	$	1,120	$	1,077	$	1,049
Commercial mortgage banking activities:
Commercial mortgage loans held for sale (e)	$	14	$	35	$	22	$	24	$	26
Commercial mortgage loan servicing income (f)	108		115		121		116		94
Commercial mortgage servicing rights valuation, net of economic hedge	28		37		47		36		39
Total	$	150	$	187	$	190	$	176	$	159
Commercial mortgage servicing statistics
Serviced portfolio balance (in billions) (g)(h)	$	296	$	294	$	293	$	295	$	294
MSR asset value (g)	$	1,029	$	1,021	$	1,006	$	1,010	$	1,041
Average loans by C&IB business
Corporate Banking	$	137,550	$	130,050	$	126,994	$	123,069	$	117,659
Real Estate	41,074		40,836		41,863		42,533		43,283
Business Credit	33,944		32,552		32,412		31,544		30,044
Commercial Banking	7,113		7,007		7,158		7,281		7,343
Other	3,835		4,126		4,091		4,169		3,896
Total average loans	$	223,516	$	214,571	$	212,518	$	208,596	$	202,225
Credit-related statistics
Nonperforming assets (g)	$	1,309	$	1,375	$	1,323	$	1,160	$	1,372
Net charge-offs - loans and leases	$	92	$	49	$	53	$	83	$	64

(a)See note (a) on page 12.

(b)Represents expense allocations for corporate overhead services used by each business segment; primarily comprised of technology, human resources and occupancy-related allocations.

(c)Other is primarily comprised of other direct expenses including outside services and equipment expense.

(d)Amounts are reported in net interest income and noninterest income.

(e)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.

(f)Represents net interest income and noninterest income from loan servicing, net of reduction in commercial mortgage servicing rights due to time and payoffs. Commercial mortgage servicing rights valuation, net of economic hedge is shown separately.

(g)Presented as of period end.

(h)Represents balances related to capitalized servicing.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 17

Table 18: Asset Management Group (Unaudited) (a)


	Three months ended
	March 31			December 31			September 30			June 30			March 31
Dollars in millions, except as noted	2026			2025			2025			2025			2025
Income Statement
Net interest income	$	189		$	180		$	176		$	179		$	174
Noninterest income	262			260			254			244			243
Total revenue	451			440			430			423			417
Provision for (recapture of) credit losses	5			(11)			4			(13)			1
Noninterest expense
Personnel	125			120			115			115			121
Segment allocations (b)	127			133			120			118			117
Depreciation and amortization	10			11			9			10			8
Other (c)	30			29			29			25			33
Total noninterest expense	292			293			273			268			279
Pre-tax earnings	154			158			153			168			137
Income taxes	36			37			36			39			32
Earnings	$	118		$	121		$	117		$	129		$	105
Average Balance Sheet
Loans
Consumer
Residential real estate	$	9,826		$	9,876		$	9,937		$	9,912		$	9,907
Other consumer	3,735			3,673			3,574			3,543			3,472
Total consumer	13,561			13,549			13,511			13,455			13,379
Commercial	835			566			659			731			657
Total loans	$	14,396		$	14,115		$	14,170		$	14,186		$	14,036
Total assets	$	14,804		$	14,505		$	14,575		$	14,629		$	14,482
Deposits
Noninterest-bearing	$	1,411		$	1,387		$	1,426		$	1,585		$	1,540
Interest-bearing	26,310			25,564			25,437			25,327			26,106
Total deposits	$	27,721		$	26,951		$	26,863		$	26,912		$	27,646
Performance Ratios
Return on average assets	3.23		%	3.31		%	3.18		%	3.54		%	2.94		%
Noninterest income to total revenue	58		%	59		%	59		%	58		%	58		%
Efficiency	65		%	67		%	63		%	63		%	67		%
Other Information
Nonperforming assets (d)	$	45		$	52		$	58		$	63		$	36
Net charge-offs (recoveries) - loans and leases	$	—		$	—		$	2		$	(1)		$	—
Client Assets Under Administration (in billions) (d)(e)
Discretionary client assets under management
PNC Private Bank	$	136		$	138		$	137		$	131		$	127
Institutional Asset Management	94			96			91			86			83
Total discretionary clients assets under management	230			234			228			217			210
Nondiscretionary client assets under administration	233			238			212			204			201
Total	$	463		$	472		$	440		$	421		$	411

(a)See note (a) on page 12.

(b)Represents expense allocations for corporate overhead services used by each business segment; primarily comprised of technology, human resources and occupancy-related allocations.

(c)Other is primarily comprised of other direct expenses including outside services and equipment expense.

(d)Presented as of period end.

(e)Excludes brokerage account client assets.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 18

Glossary of Terms

Allowance for credit losses (ACL) – A valuation account that is deducted from or added to the amortized cost basis of the related

financial assets to present the net carrying value at the amount expected to be collected on the financial asset.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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 and brokerage, Capital markets and advisory, Card and cash management, Lending and deposit services, and Residential and commercial mortgage.

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

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


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 19

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, foreclosed and other assets. We do not accrue interest income on assets classified as nonperforming.

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

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

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

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

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

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

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

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

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

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

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

Form: 8-K

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