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THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT
THIRD QUARTER 2026
(Unaudited)



THE PNC FINANCIAL SERVICES GROUP, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2026
(UNAUDITED)
Consolidated Results:
Page
6-7
9-10
Business Segment Results:
13-14
15-16
18-19

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on October 15, 2026. This information speaks only as of the particular date or dates included in the schedules. We do not undertake any obligation to, and disclaim any duty to, correct or update any of the information provided in this Financial Supplement. Our future financial performance is subject to risks and uncertainties as described in our United States Securities and Exchange Commission (SEC) filings.
BUSINESS
PNC is one of the largest diversified financial services companies in the United States (U.S.) and is headquartered in Pittsburgh, Pennsylvania. PNC has businesses engaged in retail banking, corporate and institutional banking and asset management, providing many of its products and services nationally. PNC's retail branch network is located coast-to-coast. PNC also has strategic international offices in four countries outside the U.S.
ACQUISITION OF FIRSTBANK HOLDING COMPANY
On January 5, 2026, PNC completed its acquisition of FirstBank Holding Company, including its banking subsidiary FirstBank. At close, FirstBank had $26 billion of assets, $16 billion of loans and $23 billion of deposits. Effective January 5, 2026, FirstBank’s financial results are included in PNC’s consolidated operations.

As of June 22, 2026, PNC converted approximately 780,000 customers, more than 1,620 employees and 95 branches across Colorado and Arizona, merging FirstBank into PNC Bank. Our second quarter 2026 Form 10-Q included additional information on this acquisition.
EDUCATION LOAN PORTFOLIO
During the third quarter of 2026, PNC transferred its $1.4 billion education loan portfolio to Loans held-for-sale and incurred $35 million in charge-offs upon transfer. Prior to the transfer, this portfolio was included in loan disclosures within the Other consumer loan class.


THE PNC FINANCIAL SERVICES GROUP, INC.
Cross Reference Index to Third Quarter 2026 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 endedNine months ended
September 30June 30March 31December 31September 30September 30September 30
In millions, except per share data2026202620262025202520262025
Interest Income
Loans$5,187 $4,986 $4,792 $4,640 $4,751 $14,965 $13,832 
Investment securities1,356 1,263 1,202 1,188 1,211 3,821 3,486 
Other461 445 450 552 565 1,356 1,609 
Total interest income7,004 6,694 6,444 6,380 6,527 20,142 18,927 
Interest Expense
Deposits1,799 1,682 1,735 1,864 1,980 5,216 5,633 
Borrowed funds999 905 748 785 899 2,652 2,615 
Total interest expense2,798 2,587 2,483 2,649 2,879 7,868 8,248 
Net interest income4,206 4,107 3,961 3,731 3,648 12,274 10,679 
Noninterest Income
Asset management and brokerage447 440 420 411 404 1,307 1,186 
Capital markets and advisory433 577 463 489 432 1,473 1,059 
Card and cash management769 772 738 733 737 2,279 2,166 
Lending and deposit services358 346 340 342 335 1,044 968 
Residential and commercial mortgage135 144 118 148 161 397 423 
Other income
    Gains related to Visa share exchange11 448 — — — 459 — 
    Securities gains (losses)(1)(139)28 (7)— (112)(2)
    Other (a)204 180 97 224 198 481 549 
Total other income214 489 125 217 198 828 547 
Total noninterest income2,356 2,768 2,204 2,340 2,267 7,328 6,349 
Total revenue6,562 6,875 6,165 6,071 5,915 19,602 17,028 
Provision For Credit Losses189 191 210 139 167 590 640 
Noninterest Expense
Personnel2,031 2,273 2,106 2,033 1,970 6,410 5,749 
Occupancy262 252 262 247 235 776 715 
Equipment435 435 415 412 416 1,285 1,194 
Marketing106 110 87 101 93 303 277 
Other917 1,028 898 810 747 2,843 2,296 
Total noninterest expense3,751 4,098 3,768 3,603 3,461 11,617 10,231 
Income before income taxes and noncontrolling interests2,622 2,586 2,187 2,329 2,287 7,395 6,157 
Income taxes525 531 415 296 465 1,471 1,193 
Net income2,097 2,055 1,772 2,033 1,822 5,924 4,964 
Less: Net income attributable to noncontrolling interests16 15 12 13 14 43 48 
Preferred stock dividends (b)73 85 73 83 71 231 225 
Preferred stock discount accretion and redemptions2 2 1 3 2 5 6 
Net income attributable to common shareholders$2,006 $1,953 $1,686 $1,934 $1,735 $5,645 $4,685 
Earnings Per Common Share
Basic$4.98 $4.82 $4.13 $4.88 $4.36 $13.92 $11.73 
Diluted$4.97 $4.81 $4.13 $4.88 $4.35 $13.91 $11.72 
Average Common Shares Outstanding
Basic401 403 405 394 396 403 397 
Diluted401 403 405 394 396 403 397 
Efficiency57 %60 %61 %59 %59 %59 %60 %
Noninterest income to total revenue36 %40 %36 %39 %38 %37 %37 %
Effective tax rate (c)20.0 %20.5 %19.0 %12.7 %20.3 %19.9 %19.4 %
(a)Includes Visa derivative fair value adjustments of $(36) million, $(85) million, $(32) million, $(41) million and $(35) million for the quarters ended September 30, 2026, June 30, 2026, March 31, 2026, December 31, 2025 and September 30, 2025 and $(153) million and $(73) million for the nine months ended September 30, 2026 and September 30, 2025, respectively. These adjustments are primarily related to escrow funding and the extension of anticipated litigation resolution timing.
(b)Dividends are payable quarterly, other than Series S preferred stock, which is payable semiannually.
(c)The effective income tax rates are generally lower than the statutory rate due to the relationship of pretax income to tax credits and earnings that are not subject to tax.








THE PNC FINANCIAL SERVICES GROUP, INC.

Page 2
Table 2: Consolidated Balance Sheet (Unaudited)
September 30June 30March 31December 31September 30
In millions, except par value20262026202620252025
Assets
Cash and due from banks$5,755 $5,951 $5,646 $6,777 $5,553 
Interest-earning deposits with banks (a)24,670 22,794 26,053 32,936 33,318 
Loans held for sale (b)2,753 1,522 1,332 1,939 1,104 
Investment securities – available-for-sale 67,175 71,100 71,072 68,135 68,297 
Investment securities – held-to-maturity79,195 78,406 72,040 70,105 73,226 
Loans (b)378,792 367,953 360,923 331,481 326,616 
Allowance for loan and lease losses (4,536)(4,652)(4,663)(4,410)(4,478)
Net loans374,256 363,301 356,260 327,071 322,138 
Equity investments12,094 11,735 10,512 10,790 9,972 
Mortgage servicing rights4,049 3,801 3,816 3,659 3,627 
Goodwill13,317 13,317 13,282 10,959 10,962 
Other (b) 44,552 44,107 43,015 41,201 40,570 
Total assets$627,816 $616,034 $603,028 $573,572 $568,767 
Liabilities
Deposits
Noninterest-bearing$99,720 $99,356 $99,297 $91,748 $91,207 
Interest-bearing (b)366,642 350,436 358,351 349,118 341,542 
Total deposits466,362 449,792 457,648 440,866 432,749 
Borrowed funds
Federal Home Loan Bank advances36,512 40,416 21,417 13,000 16,100 
Senior debt36,310 38,144 38,021 38,642 38,695 
Subordinated debt4,239 4,396 4,502 3,016 3,512 
Other (b)2,696 2,767 2,726 2,443 4,037 
Total borrowed funds79,757 85,723 66,666 57,101 62,344 
Allowance for unfunded lending related commitments 850 809 832 818 775 
Accrued expenses and other liabilities (b)18,437 15,649 14,206 14,151 13,861 
Total liabilities565,406 551,973 539,352 512,936 509,729 
Equity
Preferred stock (c)—————
Common stock - $5 par value
Authorized 800,000,000 shares, issued 557,291,841; 557,291,838; 557,213,012; 543,497,966 and 543,412,079 shares2,786 2,786 2,786 2,717 2,717 
Capital surplus22,059 21,999 21,926 18,922 18,859 
Retained earnings66,715 65,518 64,256 63,266 62,008 
Accumulated other comprehensive income (loss)(6,472)(4,120)(3,773)(3,408)(4,077)
Common stock held in treasury at cost: 160,049,284; 157,826,113; 155,167,491; 153,084,091 and 151,030,533 shares(22,735)(22,175)(21,568)(20,912)(20,517)
Total shareholders’ equity62,353 64,008 63,627 60,585 58,990 
Noncontrolling interests57 53 49 51 48 
Total equity62,410 64,061 63,676 60,636 59,038 
Total liabilities and equity$627,816 $616,034 $603,028 $573,572 $568,767 
(a)Amounts include balances held with the Federal Reserve Bank of $23.9 billion, $22.2 billion, $25.3 billion, $32.0 billion and $32.7 billion as of September 30, 2026, June 30, 2026, March 31, 2026, December 31, 2025 and September 30, 2025, respectively.
(b)Amounts include assets and liabilities for which PNC has elected the fair value option. Our second quarter 2026 Form 10-Q included, and our third 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 endedNine months ended
September 30June 30March 31December 31September 30September 30September 30
In millions2026202620262025202520262025
Assets
Interest-earning assets:
Investment securities
Securities available-for-sale
Residential mortgage-backed$35,582 $37,333 $34,652 $33,564 $34,752 $35,859 $34,374 
U.S. Treasury and government agencies27,88627,97228,49128,11926,79928,11425,527 
Other8,5638,4078,5058,2028,2938,4927,875 
Total securities available-for-sale72,03173,71271,64869,88569,84472,46567,776
Securities held-to-maturity
Residential mortgage-backed53,623 46,512 45,078 42,925 42,667 48,436 41,060 
U.S. Treasury and government agencies17,57518,687 20,68323,426 25,54018,97027,111 
Other8,1218,1887,1175,9836,3847,8126,912 
Total securities held-to-maturity79,31973,38772,87872,33474,59175,21875,083
Total investment securities151,350147,099144,526142,219144,435147,683142,859
Loans
Commercial and industrial232,552223,711211,358198,726195,903222,618190,571 
Commercial real estate36,62335,05734,36730,17330,85035,35731,911 
Consumer54,70455,33455,48354,88454,23855,17153,840 
Residential real estate48,29549,09449,67544,14644,94149,01645,526 
Total loans372,174363,196350,883327,929325,932362,162321,848
Interest-earning deposits with banks (c)27,68630,73432,61232,00935,00330,32733,815 
Other interest-earning assets14,90413,98512,45718,61812,75913,79911,432 
Total interest-earning assets566,114555,014540,478520,775518,129553,971509,954
Noninterest-earning assets62,77261,25660,98455,07153,40461,65253,350 
Total assets$628,886 $616,270 $601,462 $575,846 $571,533 $615,623 $563,304 
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market$82,821 $81,402 $85,196 $78,742 $75,890 $83,131 $73,297 
Demand135,951136,487137,558132,591128,962136,660126,760 
Savings105,192102,624100,94097,18896,627102,93497,018 
Time deposits36,01233,02735,57936,18037,59334,87435,363 
Total interest-bearing deposits359,976353,540359,273344,701339,072357,599332,438
Borrowed funds
Federal Home Loan Bank advances37,59529,36216,616 14,67117,61527,93518,538 
Senior debt38,27838,18437,38338,62338,01237,95236,374 
Subordinated debt4,5414,5444,2003,2993,6164,4303,871 
Other5,2606,8434,6753,7227,0705,5946,594 
Total borrowed funds85,67478,93362,87460,31566,31375,91165,377
Total interest-bearing liabilities445,650432,473422,147405,016405,385433,510397,815
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits101,208103,47999,08194,83492,756101,26392,760 
Accrued expenses and other liabilities18,83116,84816,94416,64615,62417,54116,382 
Equity63,19763,47063,29059,35057,76863,30956,347 
Total liabilities and equity$628,886 $616,270 $601,462 $575,846 $571,533 $615,623 $563,304 
(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 $26.9 billion, $29.9 billion, $31.8 billion, $31.3 billion and $34.2 billion for the three months ended September 30, 2026, June 30, 2026, March 31, 2026, December 31, 2025 and September 30, 2025 and $29.5 billion and $33.1 billion for the nine months ended September 30, 2026 and 2025, respectively.

THE PNC FINANCIAL SERVICES GROUP, INC.

Page 4
Table 4: Details of Net Interest Margin (Unaudited)
Three months endedNine months ended
September 30June 30March 31December 31September 30September 30September 30
2026202620262025202520262025
Average yields/rates (a)
Yield on interest-earning assets
Investment securities
Securities available-for-sale
Residential mortgage-backed3.92 %3.85 %3.72 %3.80 %3.82 %3.83 %3.76 %
U.S. Treasury and government agencies3.96 %3.94 %4.04 %4.29 %4.58 %3.98 %4.56 %
Other4.07 %4.01 %4.00 %3.97 %3.91 %4.02 %3.75 %
Total securities available-for-sale3.95 %3.90 %3.88 %4.02 %4.12 %3.91 %4.06 %
Securities held-to-maturity
Residential mortgage-backed3.62 %3.31 %3.20 %3.13 %3.07 %3.39 %2.94 %
U.S. Treasury and government agencies1.67 %1.64 %1.59 %1.50 %1.51 %1.63 %1.52 %
Other4.42 %4.36 %4.23 %4.28 %4.35 %4.34 %4.36 %
Total securities held-to-maturity3.27 %3.00 %2.84 %2.70 %2.65 %3.04 %2.56 %
Total investment securities3.59 %3.45 %3.36 %3.35 %3.36 %3.47 %3.27 %
Loans
Commercial and industrial5.42 %5.39 %5.43 %5.55 %5.78 %5.41 %5.74 %
Commercial real estate5.69 %5.71 %5.79 %5.92 %6.06 %5.73 %6.00 %
Consumer7.06 %6.94 %6.99 %7.09 %7.18 %7.00 %7.14 %
Residential real estate4.00 %4.03 %3.97 %3.74 %3.75 %4.00 %3.77 %
Total loans5.50 %5.47 %5.50 %5.60 %5.76 %5.49 %5.72 %
Interest-earning deposits with banks3.66 %3.63 %3.64 %3.92 %4.34 %3.64 %4.37 %
Other interest-earning assets5.39 %4.69 %4.95 %4.95 %5.51 %5.02 %5.71 %
Total yield on interest-earning assets4.90 %4.82 %4.80 %4.86 %4.99 %4.84 %4.94 %
Rate on interest-bearing liabilities
Interest-bearing deposits
Money market2.62 %2.51 %2.53 %2.77 %3.07 %2.55 %3.02 %
Demand1.66 %1.60 %1.61 %1.78 %1.96 %1.63 %1.91 %
Savings1.49 %1.48 %1.49 %1.62 %1.68 %1.49 %1.65 %
Time deposits3.15 %3.03 %3.26 %3.53 %3.67 %3.15 %3.66 %
Total interest-bearing deposits1.98 %1.91 %1.96 %2.14 %2.32 %1.95 %2.26 %
Borrowed funds
Federal Home Loan Bank advances3.94 %3.89 %3.98 %4.41 %4.73 %3.93 %4.74 %
Senior debt5.19 %5.10 %5.14 %5.55 %5.85 %5.15 %5.76 %
Subordinated debt5.26 %5.16 %5.12 %5.52 %5.81 %5.18 %5.68 %
Other
4.77 %4.08 %4.14 %4.02 %4.19 %4.31 %4.26 %
Total borrowed funds4.62 %4.57 %4.76 %5.18 %5.38 %4.64 %5.31 %
Total rate on interest-bearing liabilities2.49 %2.39 %2.37 %2.59 %2.81 %2.42 %2.76 %
Interest rate spread2.41 %2.43 %2.43 %2.27 %2.18 %2.42 %2.18 %
Benefit from use of noninterest-bearing sources (b)0.53 %0.53 %0.52 %0.57 %0.61 %0.53 %0.61 %
Net interest margin (c)(d)2.94 %2.96 %2.95 %2.84 %2.79 %2.95 %2.79 %
(a)Yields and rates are calculated using the applicable annualized interest income or expense for each product, based on its contractual day-count convention (e.g., 30/360; actual/actual; actual/360), divided by the applicable average earning assets or interest-bearing liabilities. This approach accounts for differences in product conventions to reduce seasonal volatility in net interest margin.
(b)Represents the positive effects of investing noninterest-bearing sources in interest-earning assets.
(c)Net interest margin is the total yield on interest-earning assets minus the total rate on interest-bearing liabilities and includes the benefit from use of noninterest-bearing sources.
(d)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 September 30, 2026, June 30, 2026, March 31, 2026, December 31, 2025 and September 30, 2025 were $26 million, $27 million, $29 million, $31 million and $30 million, respectively. The taxable-equivalent adjustments to net interest income for the nine months ended September 30, 2026 and 2025 were $82 million and $86 million, respectively.


THE PNC FINANCIAL SERVICES GROUP, INC.

Page 5
Table 5: Details of Loans (Unaudited)
September 30June 30March 31December 31September 30
In millions20262026202620252025
Commercial
Commercial and industrial
Financial services$49,120 $44,297 $42,224 $37,592 $33,939 
Manufacturing36,46035,11434,97730,62331,044
Service providers28,14927,75627,30325,55225,159
Wholesale trade24,16022,71321,14619,84319,917
Real estate related (a)19,77417,99417,13815,27515,405
Retail trade14,15613,37512,97312,07312,408
Technology, media and telecommunications12,95212,68213,61312,32411,594
Rental and leasing10,6279,6969,2819,0748,940
Health care10,0239,5369,5269,1359,851
Transportation and warehousing9,9649,8939,8729,2588,156
Other industries24,64624,85923,13722,14920,681
Total commercial and industrial240,031 227,915 221,190 202,898 197,094 
Commercial real estate36,960 35,962 34,770 29,565 30,281 
Total commercial276,991 263,877 255,960 232,463 227,375 
Consumer
Residential real estate48,026 48,709 49,567 43,760 44,637 
Home equity26,280 26,280 26,223 25,941 25,942 
Automobile15,345 15,872 16,325 16,591 16,272 
Credit card7,527 7,311 7,069 7,014 6,636 
Other consumer (b)4,623 5,904 5,779 5,712 5,754 
Total consumer101,801 104,076 104,963 99,018 99,241 
Total loans$378,792 $367,953 $360,923 $331,481 $326,616 
(a)Represents loans to customers in the real estate and construction industries.
(b)During the third quarter of 2026, PNC transferred its $1.4 billion education loan portfolio to Loans held-for-sale.



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 endedNine months ended
September 30June 30March 31December 31September 30September 30September 30
Dollars in millions2026202620262025202520262025
Allowance for loan and lease losses
Beginning balance$4,652 $4,663 $4,410 $4,478 $4,523 $4,410    $4,486 
Acquisition PCD reserves— — 93    — — 93    — 
Acquisition PSL reserves (a)— — 229    — — 229    — 
Adjusted beginning balance4,652 4,663 4,732 4,478 4,523 4,732    4,486 
Gross charge-offs:
Commercial and industrial(131)(141)(129)(85)(97)(401)(309)
Commercial real estate(33)(24)(19)(15)(19)(76)(101)
Residential real estate(2)— (1)— (6)(3)(8)
Home equity(11)(10)(10)(7)(10)(31)(28)
Automobile(28)(29)(31)(33)(32)(88)(97)
Credit card(68)(78)(74)(73)(76)(220)(247)
Other consumer (b)(79)(42)(45)(43)(44)(166)(130)
Acquired loans (c)— — (45)— — (45)— 
Total gross charge-offs(352)(324)(354)(256)(284)(1,030)(920)
Recoveries:
Commercial and industrial35 33 33 33 38 101 133 
Commercial real estate1 3 5 3 6 9 19 
Residential real estate3 2 2 3 3 7 8 
Home equity13 7 8 8 7 28 27 
Automobile20 21 20 22 25 61 72 
Credit card19 19 20 15 17 58 47 
Other consumer4 13 13 10 9 30 32 
Total recoveries95 98 101 94 105 294 338 
Net (charge-offs) / recoveries:
Commercial and industrial(96)(108)(96)(52)(59)(300)(176)
Commercial real estate(32)(21)(14)(12)(13)(67)(82)
Residential real estate1 2 1 3 (3)4 — 
Home equity2 (3)(2)1 (3)(3)(1)
Automobile(8)(8)(11)(11)(7)(27)(25)
Credit card(49)(59)(54)(58)(59)(162)(200)
Other consumer(75)(29)(32)(33)(35)(136)(98)
Acquired loans— — (45)— — (45)— 
Total net (charge-offs) (257)(226)(253)(162)(179)(736)(582)
Provision for credit losses (d)141 213 188 93 136 542 567 
Other— 2 (4)1 (2)(2)7 
Ending balance$4,536 $4,652 $4,663 $4,410 $4,478 $4,536 $4,478 
Supplemental Information
Net charge-offs
Commercial net charge-offs$(128)$(129)$(120)$(64)$(72)$(377)$(258)
Consumer net charge-offs(129)(97)(133)(98)(107)(359)(324)
Total net charge-offs (257)(226)(253)(162)(179)(736)(582)
Net charge-offs to average loans (annualized)0.28 %0.25 %0.29 %0.20 %0.22 %0.26 %0.24 %
Commercial0.20 %0.20 %0.18 %0.11 %0.13 %0.18 %0.15 %
Consumer0.49 %0.37 %0.38 %0.39 %0.43 %0.42 %0.44 %
(a)On January 1, 2026, we adopted ASU 2025-08 - Financial Instruments - Credit Losses (Topic 326): Purchased Loans, and established the initial ACL for purchased seasoned loans (PSLs). Our third quarter 2026 Form 10-Q will include additional information on the adoption of this ASU.
(b)During the third quarter of 2026, PNC transferred its $1.4 billion education loan portfolio to Loans held-for-sale and incurred $35 million in charge-offs upon transfer.
(c)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.
(d)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 endedNine months ended
September 30June 30March 31December 31September 30September 30September 30
In millions2026202620262025202520262025
Provision for credit losses
Loans and leases$141 $213 $188 $93 $136 $542 $567 
Unfunded lending related commitments40 (20)14 43 16 34 54 
Investment securities — (1)— — (1)(1)1 
Other financial assets8 (1)8 3 16 15 18 
Total provision for credit losses$189 $191 $210 $139 $167 $590 $640 

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

Dollars in millions		Allowance AmountTotal Loans% of Total LoansAllowance AmountTotal Loans% of Total LoansAllowance AmountTotal Loans% of Total Loans
Allowance for loan and lease losses
Commercial
Commercial and industrial$2,106 $240,031 0.88 %$2,219 $227,915 0.97 %$2,036 $197,094 1.03 %
Commercial real estate1,085 36,960 2.94 %1,035 35,962 2.88 %1,142 30,281 3.77 %
Total commercial3,191 276,991 1.15 %3,254 263,877 1.23 %3,178 227,375 1.40 %
Consumer
Residential real estate101 48,026 0.21 %90 48,709 0.18 %50 44,637 0.11 %
Home equity270 26,280 1.03 %280 26,280 1.07 %285 25,942 1.10 %
Automobile150 15,345 0.98 %160 15,872 1.01 %153 16,272 0.94 %
Credit card654 7,527 8.69 %647 7,311 8.85 %596 6,636 8.98 %
Other consumer170 4,623 3.68 %221 5,904 3.74 %216 5,754 3.75 %
Total consumer1,345 101,801 1.32 %1,398 104,076 1.34 %1,300 99,241 1.31 %
Total
4,536 $378,792 1.20 %4,652 $367,953 1.26 %4,478 $326,616 1.37 %
Allowance for unfunded lending related commitments
850 809 775 
Allowance for credit losses
$5,386 $5,461 $5,253 
Supplemental Information
Allowance for credit losses to total loans
1.42 %1.48 %1.61 %
Commercial1.40 %1.49 %1.68 %
Consumer1.47 %1.48 %1.45 %
(a)    Excludes allowances for investment securities and other financial assets, which together totaled $103 million, $99 million and $101 million at September 30, 2026, June 30, 2026 and September 30, 2025, respectively.

THE PNC FINANCIAL SERVICES GROUP, INC.

Page 8
Details of Nonperforming Assets (Unaudited)

Table 9: Nonperforming Assets by Type
September 30June 30March 31December 31September 30
Dollars in millions20262026202620252025
Nonperforming loans
Commercial
Commercial and industrial
Service providers$269 $131 $136 $116 $119 
Wholesale trade107 106 97 161 96 
Manufacturing110 186 224 98 75 
Transportation and warehousing77 83 71 62 68 
Real estate related (a)63 50 25 27 20 
Health care50 47 42 47 45 
Technology, media and telecommunications41 41 25 27 83 
Retail trade9 14 79 194 36 
Rental and leasing5 4 5 6 13 
Other industries24 23 46 46 64 
Total commercial and industrial755 685 750 784 619 
Commercial real estate559 464 630 574 663 
Total commercial1,314 1,149 1,380 1,358 1,282 
Consumer (b)
Residential real estate 319 325 316 320 326 
Home equity 465 456 447 439 431 
Automobile81 82 85 83 82 
Credit card12 11 12 13 13 
Other consumer3 4 3 5 3 
Total consumer880 878 863 860 855 
Total nonperforming loans (c)2,194 2,027 2,243 2,218 2,137 
OREO, foreclosed and other assets (d) 131 123 139 143 162 
Total nonperforming assets$2,325 $2,150 $2,382 $2,361 $2,299 
Nonperforming loans to total loans0.58 %0.55 %0.62 %0.67 %0.65 %
Nonperforming assets to total loans, OREO, foreclosed and other assets (d) 0.61 %0.58 %0.66 %0.71 %0.70 %
Nonperforming assets to total assets0.37 %0.35 %0.40 %0.41 %0.40 %
Allowance for loan and lease losses to nonperforming loans 207 %230 %208 %199 %210 %
(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 $86 million, $90 million, $103 million, $105 million and $127 million at September 30, 2026, June 30, 2026, March 31, 2026, December 31, 2025 and September 30, 2025, respectively.


Table 10: Change in Nonperforming Assets
Three months ended
September 30June 30March 31December 31September 30
Dollars in millions20262026202620252025
Beginning balance$2,150 $2,382 $2,361 $2,299 $2,141 
New nonperforming assets692 335 539 569 653 
Charge-offs and valuation adjustments(153)(150)(152)(91)(103)
Principal activity, including paydowns and payoffs(293)(174)(343)(248)(299)
Asset sales and transfers to loans held for sale(3)(68)(9)(33)(13)
Returned to performing status (68)(175)(95)(135)(80)
Acquired nonperforming assets— — 81 — — 
Ending balance$2,325 $2,150 $2,382 $2,361 $2,299 








THE PNC FINANCIAL SERVICES GROUP, INC.

Page 9
Accruing Loans Past Due (Unaudited)              

Table 11: Accruing Loans Past Due 30 to 59 Days (a)
September 30June 30March 31December 31September 30
Dollars in millions20262026202620252025
Commercial
Commercial and industrial$106$123$283$182$161
Commercial real estate11790149
Total commercial117130373196170
Consumer
Residential real estate
Non government insured212305221170166
Government insured6667637379
Home equity6065737073
Automobile6059597470
Credit card4237414545
Other consumer832333232
Total consumer448565490464465
Total$565$695$863$660$635
Supplemental Information
Total accruing loans past due 30-59 days to total loans0.15 %0.19 %0.24 %0.20 %0.19 %
Commercial0.04 %0.05 %0.15 %0.08 %0.07 %
Consumer0.44 %0.54 %0.47 %0.47 %0.47 %
(a)Excludes loans held for sale.


Table 12: Accruing Loans Past Due 60 to 89 Days (a)
September 30June 30March 31December 31September 30
Dollars in millions20262026202620252025
Commercial
Commercial and industrial$85$121$50$103$67
Commercial real estate10291798—
Total commercial1871306720167
Consumer
Residential real estate
Non government insured 6178695748
Government insured 3737414439
Home equity 2726323027
Automobile1615151817
Credit card2928313231
Other consumer524182122
Total consumer175208206202184
Total$362$338$273$403$251
Supplemental Information
Total accruing loans past due 60-89 days to total loans0.10 %0.09 %0.08 %0.12 %0.08 %
Commercial0.07 %0.05 %0.03 %0.09 %0.03 %
Consumer0.17 %0.20 %0.20 %0.20 %0.19 %
(a)Excludes loans held for sale.




THE PNC FINANCIAL SERVICES GROUP, INC.

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

Table 13: Accruing Loans Past Due 90 Days or More (a)
September 30June 30March 31December 31September 30
Dollars in millions20262026202620252025
Commercial
Commercial and industrial$69 $76 $68 $57 $71 
Commercial real estate4 — 1 — 1 
Total commercial73  76  69  57  72  
Consumer
Residential real estate
Non government insured49 42 50 46 38 
Government insured183 188 195 163 126 
Automobile6 4 5 5 4 
Credit card57 56 64 65 63 
Other consumer6 37 39 44 44 
Total consumer301  327  353  323  275  
Total$374 $403 $422 $380 $347 
Supplemental Information
Total accruing loans past due 90 days or more to total loans0.10 %0.11 %0.12 %0.11 %0.11 %
Commercial0.03 %0.03 %0.03 %0.02 %0.03 %
Consumer0.30 %0.31 %0.34 %0.33 %0.28 %
Total accruing loans past due$1,301 $1,436 $1,558 $1,443 $1,233 
Commercial$377 $336 $509 $454 $309 
Consumer$924 $1,100 $1,049 $989 $924 
Total accruing loans past due to total loans0.34 %0.39 %0.43 %0.44 %0.38 %
Commercial0.14 %0.13 %0.20 %0.20 %0.14 %
Consumer0.91 %1.06 %1.00 %1.00 %0.93 %
(a)Excludes loans held for sale.










































THE PNC FINANCIAL SERVICES GROUP, INC.

Page 11
Business Segment Descriptions (Unaudited)

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

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

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

Table 14: Period End Employees
September 30June 30March 31December 31September 30
20262026202620252025
Full-time employees
Retail Banking26,440 26,611 28,046 26,168 26,126 
Other full-time employees29,132 29,093 28,320 27,691 27,397 
Total full-time employees55,572 55,704 56,366 53,859 53,523 
Part-time employees
Retail Banking1,347 1,429 1,389 1,427 1,367 
Other part-time employees44 495 46 47 48 
Total part-time employees1,391 1,924 1,435 1,474 1,415 
Total56,963 57,628 57,801 55,333 54,938 


THE PNC FINANCIAL SERVICES GROUP, INC.

Page 12
Table 15: Summary of Business Segment Net Income and Revenue (Unaudited) (a)
Three months endedNine months ended
September 30June 30March 31December 31September 30September 30September 30
In millions2026202620262025202520262025
Net Income (b)
Retail Banking $1,425 $1,747 $1,349 $1,266 $1,351 $4,521 $3,885 
Corporate & Institutional Banking1,552 1,588 1,480 1,597 1,545 4,620 4,196 
Asset Management Group 128 135 121 124 120 384 360 
Other (1,024)(1,430)(1,190)(967)(1,208)(3,644)(3,525)
Net income excluding noncontrolling interests$2,081 $2,040 $1,760 $2,020 $1,808 $5,881 $4,916 
  
Revenue (b)
Retail Banking $4,088 $4,518 $4,007 $3,792 $3,840 $12,613 $11,211 
Corporate & Institutional Banking3,212 3,283 3,086 3,175 3,020 9,581 8,602 
Asset Management Group 459 462 455 444 433 1,376 1,282 
Other (1,197)(1,388)(1,383)(1,340)(1,378)(3,968)(4,067)
Total revenue$6,562 $6,875 $6,165 $6,071 $5,915 $19,602 $17,028 
(a)Our business information is presented based on our internal management reporting practices. Net interest income in business segment results reflects PNC’s internal funds transfer pricing methodology. Assets receive a funding charge and liabilities and capital receive a funding credit based on a transfer pricing methodology that incorporates product repricing characteristics, tenor and other factors.
(b)During the second quarter of 2026, PNC updated its internal funds transfer pricing methodology. The update resulted in impacts to net interest income and associated income statement line items for all business segments. Prior periods have been adjusted to conform with the current presentation.


THE PNC FINANCIAL SERVICES GROUP, INC.

Page 13
Table 16: Retail Banking (Unaudited) (a)
Three months endedNine months ended
September 30June 30March 31December 31September 30September 30September 30
Dollars in millions2026202620262025202520262025
Income Statement
Net interest income (b)$3,246 $3,291 $3,237 $3,022 $3,050 $9,774 $8,933 
Noninterest income842 1,227 770 770 790 2,839 2,278 
Total revenue (b)4,088 4,518 4,007 3,792 3,840 12,613 11,211 
Provision for credit losses115 120 124 155 126 359 377 
Noninterest expense
Personnel561 551 571 535 529 1,683 1,606 
Segment allocations (c)1,069 1,090 1,088 1,020 979 3,247 2,924 
Depreciation and amortization138 138 132 95 97 408 270 
Other (d)336 332 324 327 336 992 933 
Total noninterest expense2,104 2,111 2,115 1,977 1,941 6,330 5,733 
Pre-tax earnings (b)1,869 2,287 1,768 1,660 1,773 5,924 5,101 
Income taxes (b)435 532 412 387 413 1,379 1,188 
Noncontrolling interests9 8 7 7 9 24 28 
Earnings (b)$1,425 $1,747 752 $1,349 $1,266 $1,351 $4,521 $3,885 
Average Balance Sheet
Loans held for sale$1,169 $616 $562 $699 $785 $785 $839 
Loans
Consumer
Residential real estate$37,503 $38,348 $38,939 $33,336 $34,043 $38,259 $34,624 
Home equity24,862 24,859 24,913 24,559 24,551 24,878 24,549 
Automobile15,609 16,058 16,499 16,403 16,035 16,052 15,674 
Credit card7,362 7,128 6,912 6,754 6,561 7,135 6,537 
Other consumer2,648 3,164 3,257 3,320 3,334 3,021 3,357 
Total consumer 87,984 89,557 90,520 84,372 84,524 89,345 84,741 
Commercial 19,899 20,989 20,423 12,603 12,353 20,435 12,638 
Total loans$107,883 $110,546 $110,943 $96,975 $96,877 $109,780 $97,379 
Total assets $127,602 $130,460 $130,616 $113,714 $114,146 $129,546 $114,447 
Deposits
Noninterest-bearing $60,052 $60,547 $58,714 $52,125 $52,604 $59,776 $52,093 
Interest-bearing 207,054 211,055 209,519 191,941 190,652 209,200 190,470 
Total deposits$267,106 $271,602 $268,233 $244,066 $243,256 $268,976 $242,563 
Performance Ratios (b)
Return on average assets 4.43 %5.37 %4.19 %4.42 %4.70 %4.67 %4.54 %
Noninterest income to total revenue 21 %27 %19 %20 %21 %23 %20 %
Efficiency51 %47 %53 %52 %51 %50 %51 %
(continued on following page)



THE PNC FINANCIAL SERVICES GROUP, INC.

Page 14
Retail Banking (Unaudited) (Continued)
Three months endedNine months ended
September 30June 30March 31December 31September 30September 30September 30
Dollars in millions, except as noted2026202620262025202520262025
Supplemental Noninterest Income Information
Asset management and brokerage $179 $172 $161 $155 $154 $512 $456 
Card and cash management$350 $350 $322 $328 $334 $1,022 $958 
Lending and deposit services $211 $204 $200 $199 $199 $615 $573 
Residential and commercial mortgage $71 $83 $63 $78 $89 $217 $215 
Other income - Gains related to Visa share exchange$11 $448 $— $— $— $459 $— 
Residential Mortgage Information
Residential mortgage servicing statistics (e)
Serviced portfolio balance (in billions) (f)$207 $209 $212 $198 $199 
MSR asset value (f)$2,908 $2,762 $2,786 $2,638 $2,622 
Servicing income:
Servicing fees, net (g)$58 $61 $68 $63 $60 $187 $191 
Mortgage servicing rights valuation, net of economic hedge$(4)$3 $(27)$(5)$18 $(28)$16 
Residential mortgage loan statistics
Loan origination volume (in billions)$1.4 $1.7 $1.5 $1.6 $1.5 $4.6 $4.2 
Loan sale margin percentage2.04 %2.01 %2.25 %1.88 %1.67 %2.10 %1.10 %
Other Information
Credit-related statistics
Nonperforming assets (f)$978 $944 $932 $840 $827 
Net charge-offs - loans and leases$154 $123 $118 $116 $126 $395 $390 
Other statistics
Branches (f)(h)2,302 2,304 2,315 2,224 2,219 
Brokerage account client assets (in billions) (f)(i)$97 $97 $91 $91 $89 
(a)See note (a) on page 12.
(b)See note (b) on page 12.
(c)Represents expense allocations for corporate overhead services used by each business segment; primarily comprised of technology, human resources and occupancy-related allocations.
(d)Other is primarily comprised of other direct expenses including outside services and equipment expense.
(e)Represents mortgage loan servicing balances for third parties and the related income.
(f)Presented as of period end.
(g)Servicing fees net of impact of decrease in MSR value due to passage of time, which includes the impact from regularly scheduled loan principal payments, prepayments and loans paid off during the period.
(h)Reflects all branches excluding standalone mortgage offices and satellite offices (e.g., drive-ups, electronic branches and retirement centers) that provide limited products and/or services.
(i)Includes cash and money market balances.





THE PNC FINANCIAL SERVICES GROUP, INC.

Page 15
Table 17: Corporate & Institutional Banking (Unaudited) (a)
Three months endedNine months ended
September 30June 30March 31December 31September 30September 30September 30
Dollars in millions2026202620262025202520262025
Income Statement
Net interest income (b)$2,045 $1,992 $1,942 $1,965 $1,888 $5,979 $5,470 
Noninterest income1,167 1,291 1,144 1,210 1,132 3,602 3,132 
Total revenue (b)3,212 3,283 3,086 3,175 3,020 9,581 8,602 
Provision for credit losses76 76 77 14 44 229 277 
Noninterest expense
Personnel455 502 460 472 403 1,417 1,149 
Segment allocations (c)436 418 424 422 387 1,278 1,151 
Depreciation and amortization47 50 46 55 46 143 146 
Other (d)168 161 146 158 140 475 436 
Total noninterest expense1,106 1,131 1,076 1,107 976 3,313 2,882 
Pre-tax earnings (b)2,030 2,076 1,933 2,054 2,000 6,039 5,443 
Income taxes (b)473 483 448 451 450 1,404 1,233 
Noncontrolling interests5 5 5 6 5 15 14 
Earnings (b)$1,552 $1,588 $1,480 $1,597 $1,545 $4,620 $4,196 
Average Balance Sheet
Loans held for sale$566 $635 $665 $632 $691 $622 $575 
Loans
Commercial
Commercial and industrial $216,681 $207,046 $194,711 $185,195 $182,484 $206,227 $176,773 
Commercial real estate31,009 29,008 28,802 29,374 30,032 29,614 31,041 
Total commercial 247,690 236,054 223,513 214,569 212,516 235,841 207,814 
Consumer4 3 3 2 2 3 3 
Total loans$247,694 $236,057 $223,516 $214,571 $212,518 $235,844 $207,817 
Total assets $276,846 $263,912 $249,789 $241,169 $238,338 $263,615 $233,307 
Deposits
Noninterest-bearing $39,744 $41,441 $38,959 $41,308 $38,732 $40,051 $39,140 
Interest-bearing124,287 117,169 122,219 122,457 116,460 121,233 110,775 
Total deposits$164,031 $158,610 $161,178 $163,765 $155,192 $161,284 $149,915 
Performance Ratios (b)
Return on average assets2.22 %2.41 %2.40 %2.63 %2.57 %2.34 %2.40 %
Noninterest income to total revenue36 %39 %37 %38 %37 %38 %36 %
Efficiency34 %34 %35 %35 %32 %35 %34 %
(continued on following page)


























THE PNC FINANCIAL SERVICES GROUP, INC.

Page 16
Corporate & Institutional Banking (Unaudited) (Continued)
Three months endedNine months ended
September 30June 30March 31December 31September 30September 30September 30
Dollars in millions2026202620262025202520262025
Other Information
Consolidated revenue from:
Treasury Management (b) (e)$1,175 $1,171 $1,171 $1,199 $1,122 $3,517 $3,252 
Commercial mortgage banking activities:
Commercial mortgage loans held for sale (b) (f)$23 $23 $14 $34 $23 $60 $73 
Commercial mortgage loan servicing income (b) (g)123 127 120 128 135 370 373 
Commercial mortgage servicing rights valuation, net of economic hedge38 33 28 37 47 99 122 
Total$184 $183 $162 $199 $205 $529 $568 
Commercial mortgage servicing statistics
Serviced portfolio balance (in billions) (h)(i)$294 $294 $296 $294 $293 
MSR asset value (h)$1,141 $1,039 $1,029 $1,021 $1,006 
Average loans by C&IB business (j)
Corporate Banking$146,425 $139,370 $128,837 $121,379 $118,445 $138,275 $114,151 
Real Estate44,466 41,002 41,074 40,836 41,863 42,193 42,555 
Business Credit37,011 36,012 33,944 32,552 32,412 35,667 31,342 
Equipment Finance10,723 10,717 10,595 10,551 10,476 10,678 10,390 
Commercial Banking6,000 5,944 5,976 5,904 6,063 5,973 6,173 
Other3,069 3,012 3,090 3,349 3,259 3,058 3,206 
Total average loans$247,694 $236,057 $223,516 $214,571 $212,518 $235,844 $207,817 
Credit-related statistics
Nonperforming assets (h) $1,216 $1,066 $1,309 $1,375 $1,323 
Net charge-offs - loans and leases$106 $105 $92 $49 $53 $303 $200 
(a)See note (a) on page 12.
(b)See note (b) on page 12.
(c)Represents expense allocations for corporate overhead services used by each business segment; primarily comprised of technology, human resources and occupancy-related allocations.
(d)Other is primarily comprised of other direct expenses including outside services and equipment expense.
(e)Amounts are reported in net interest income and noninterest income.
(f)Represents commercial mortgage banking income for valuations on commercial mortgage loans held for sale and related commitments, derivative valuations, origination fees, gains on sale of loans held for sale and net interest income on loans held for sale.
(g)Represents net interest income and noninterest income from loan servicing, net of reduction in commercial mortgage servicing rights due to time and payoffs. Commercial mortgage servicing rights valuation, net of economic hedge is shown separately.
(h)Presented as of period end.
(i)Represents balances related to capitalized servicing.
(j)During the second quarter of 2026, certain equipment finance activity was centralized and established as a business unit within C&IB. As a result, certain loans were reclassified from Corporate Banking, Commercial Banking and Other to Equipment Finance. Prior periods have been adjusted to conform with the current presentation.


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Table 18: Asset Management Group (Unaudited) (a)
Three months endedNine months ended
September 30June 30March 31December 31September 30September 30September 30
Dollars in millions, except as noted2026202620262025202520262025
Income Statement
Net interest income (b)$188 $191 $193 $184 $179 $572 $541 
Noninterest income271 271 262 260 254 804 741 
Total revenue (b)459 462 455 444 433 1,376 1,282 
Provision for (recapture of) credit losses(4)(3)5 (11)4 (2)(8)
Noninterest expense
Personnel122 120 125 120 115 367 351 
Segment allocations (c)135 128 127 133 120 390 355 
Depreciation and amortization11 11 10 11 9 32 27 
Other (d)28 30 30 29 29 88 87 
Total noninterest expense296 289 292 293 273 877 820 
Pre-tax earnings (b)167 176 158 162 156 501 470 
Income taxes (b)39 41 37 38 36 117 110 
Earnings (b)$128 $135 $121 $124 $120 $384 $360 
Average Balance Sheet
Loans
Consumer
Residential real estate $9,938 $9,866 $9,826 $9,876 $9,937 $9,877 $9,919 
Other consumer4,070 3,964 3,735 3,673 3,574 3,924 3,530 
Total consumer 14,008 13,830 13,561 13,549 13,511 13,801 13,449 
Commercial773 814 835 566 659 807 682 
Total loans$14,781 $14,644 $14,396 $14,115 $14,170 $14,608 $14,131 
Total assets$15,185 $15,048 $14,804 $14,505 $14,575 $15,014 $14,562 
Deposits
Noninterest-bearing $1,523 $1,459 $1,411 $1,387 $1,426 $1,465 $1,517 
Interest-bearing25,375 25,575 26,310 25,564 25,437 25,750 25,621 
Total deposits$26,898 $27,034 $27,721 $26,951 $26,863 $27,215 $27,138 
Performance Ratios (b)
Return on average assets3.34 %3.60 %3.31 %3.39 %3.27 %3.42 %3.31 %
Noninterest income to total revenue59 %59 %58 %59 %59 %58 %58 %
Efficiency64 %63 %64 %66 %63 %64 %64 %
Other Information
Nonperforming assets (e) $43 $45 $45 $52 $58 
Net charge-offs (recoveries) - loans and leases $(1)$1 $— $— $2 $— $1 
Client Assets Under Administration (in billions) (e)(f)
Discretionary client assets under management
 PNC Private Bank$146 $146 $136 $138 $137 
Institutional Asset Management104 101 94 96 91 
Total discretionary clients assets under management250 247 230 234 228 
Nondiscretionary client assets under administration249 256 233 238 212 
Total$499 $503 $463 $472 $440 
(a)See note (a) on page 12.
(b)See note (b) on page 12.
(c)Represents expense allocations for corporate overhead services used by each business segment; primarily comprised of technology, human resources and occupancy-related allocations.
(d)Other is primarily comprised of other direct expenses including outside services and equipment expense.
(e)Presented as of period end.
(f)Excludes brokerage account client assets.

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Glossary of Terms

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Efficiency – Noninterest expense divided by total revenue.

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

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

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

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

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

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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.