PNC Reports First Quarter 2026 Net Income of $1.8 Billion, $4.13 Diluted EPS or $4.32 as Adjusted

PNC Reports First Quarter 2026 Net Income of $1.8 Billion, $4.13 Diluted EPS or $4.32 as Adjusted NII increased 6%, NIM of 2.95%; grew average loans 7%; ~$700 million of share repurchases

PITTSBURGH, April 15, 2026 /PRNewswire/ -- The PNC Financial Services Group, Inc. (NYSE: PNC) today reported:

For the quarter

In millions, except per share data and as noted

1Q26

4Q25

1Q25

First Quarter Highlights

Financial Results

Comparisons reflect 1Q26 vs. 4Q25

Net interest income (NII)

$ 3,961

$ 3,731

$ 3,476

Income Statement

Balance Sheet

Fee income (non-GAAP)

2,079

2,123

1,839

Other noninterest income

125

217

137

Noninterest income

2,204

2,340

1,976

Revenue

6,165

6,071

5,452

Noninterest expense

3,768

3,603

3,387

Pretax, pre-provision earnings (PPNR) (non-GAAP)

2,397

2,468

2,065

Integration costs

—

PPNR excluding integration costs (non-GAAP)

2,495

2,468

2,065

Provision for credit losses

210

139

219

Net income

1,772

2,033

1,499

Per Common Share

Diluted earnings per share (EPS)

$ 4.13

$ 4.88

$ 3.51

Diluted EPS - as adjusted (non-GAAP)

4.32

4.88

3.51

Average diluted common shares outstanding

405

394

398

Book value

143.65

140.44

127.98

Tangible book value (TBV) (non-GAAP)

109.42

112.51

100.40

Balance Sheet & Credit Quality

Average loans In billions

$ 350.9

$ 327.9

$ 316.6

Average deposits In billions

458.4

439.5

420.6

Net loan charge-offs

253

162

205

Acquired net loan charge-offs

—

Non-acquired net loan charge-offs

208

162

205

Allowance for credit losses to total loans

1.52 %

1.58 %

1.64 %

Selected Ratios

Return on average common shareholders' equity

11.92 %

14.33 %

11.60 %

Return on average assets

1.19

1.40

1.09

Net interest margin (NIM) (non-GAAP)

2.95

2.84

2.78

Noninterest income to total revenue

Efficiency

Efficiency excluding integration costs (non-GAAP)

Common equity tier 1 (CET1) capital ratio

10.1

10.6

See non-GAAP financial measures in the Consolidated Financial Highlights accompanying this release.

Totals may not sum due to rounding.

From Bill Demchak, PNC Chairman and Chief Executive Officer:

"2026 is off to a great start for PNC. During the first quarter we successfully closed the FirstBank acquisition, and in addition, generated strong legacy loan growth. Client activity remains robust across all our geographies, and importantly, we're well positioned to continue our strong momentum."

Acquisition of FirstBank

Income Statement Highlights

First quarter 2026 compared with fourth quarter 2025

Balance Sheet Highlights

First quarter 2026 compared with fourth quarter 2025 or March 31, 2026 compared with December 31, 2025

Earnings Summary

In millions, except per share data

1Q26

4Q25

1Q25

Net income

$ 1,772

$ 2,033

$ 1,499

Net income attributable to diluted common shareholders

$ 1,675

$ 1,922

$ 1,399

Net income attributable to diluted common shareholders - as adjusted (non-GAAP)

$ 1,752

$ 1,922

$ 1,399

Diluted earnings per common share

$ 4.13

$ 4.88

$ 3.51

Diluted earnings per common share - as adjusted (non-GAAP)

$ 4.32

$ 4.88

$ 3.51

Average diluted common shares outstanding

405

394

398

Cash dividends declared per common share

$ 1.70

$ 1.60

See non-GAAP financial measures in the Consolidated Financial Highlights accompanying this release.

The Consolidated Financial Highlights accompanying this news release include additional information regarding reconciliations of non-GAAP financial measures to reported (GAAP) amounts. This information supplements results as reported in accordance with GAAP and should not be viewed in isolation from, or as a substitute for, GAAP results. Information in this news release, including the financial tables, is unaudited.

CONSOLIDATED REVENUE REVIEW

Revenue

Change

1Q26 vs

In millions

1Q26

4Q25

1Q25

4Q25

1Q25

Net interest income

$ 3,961

$ 3,731

$ 3,476

6 %

14 %

Noninterest income

2,204

2,340

1,976

(6) %

12 %

Total revenue

$ 6,165

$ 6,071

$ 5,452

2 %

13 %

Total revenue for the first quarter of 2026 increased $94 million compared to the fourth quarter of 2025 driven by increased net interest income. Compared to the first quarter of 2025, total revenue increased $713 million as a result of growth in both net interest income and noninterest income.

Net interest income of $4.0 billion increased $230 million from the fourth quarter of 2025 and $485 million from the first quarter of 2025. In both comparisons, the increase reflected the benefit of FirstBank, lower funding costs and commercial loan growth.

Net interest margin was 2.95% in the first quarter of 2026, increasing 11 basis points from the fourth quarter of 2025, reflecting an 18 basis point decline in the rate paid on interest-bearing deposits. Compared to the first quarter of 2025 net interest margin expanded 17 basis points.

Noninterest Income

Change

1Q26 vs

In millions

1Q26

4Q25

1Q25

4Q25

1Q25

Asset management and brokerage

$ 420

$ 411

$ 391

2 %

7 %

Capital markets and advisory

463

489

306

(5) %

51 %

Card and cash management

738

733

692

1 %

7 %

Lending and deposit services

340

342

316

(1) %

8 %

Residential and commercial mortgage

118

148

134

(20) %

(12) %

Fee income (non-GAAP)

2,079

2,123

1,839

(2) %

13 %

Other

125

217

137

(42) %

(9) %

Total noninterest income

$ 2,204

$ 2,340

$ 1,976

(6) %

12 %

Noninterest income for the first quarter of 2026 decreased $136 million, or 6%, compared with the fourth quarter of 2025 and increased $228 million, or 12%, from the first quarter of 2025.

In comparison to the fourth quarter of 2025, fee income decreased $44 million, or 2%. Asset management and brokerage fees increased $9 million as a result of higher average equity markets and increased client activity. Capital markets and advisory revenue decreased $26 million as both higher underwriting and trading revenue were more than offset by lower merger and acquisition advisory fees. Card and cash management revenue increased $5 million and included higher treasury management product revenue. Residential and commercial mortgage revenue decreased $30 million due to a $31 million decline in mortgage servicing rights valuation, net of economic hedge driven by rate volatility.

Compared to the first quarter of 2025, fee income increased $240 million, or 13%, driven by broad-based growth across business lines and fee income categories.

Other noninterest income of $125 million in the first quarter of 2026 included negative $32 million of Visa derivative adjustments, unfavorable valuation adjustments of private equity investments and $28 million of net securities gains.

CONSOLIDATED EXPENSE REVIEW

Noninterest Expense

Change

1Q26 vs

In millions

1Q26

4Q25

1Q25

4Q25

1Q25

Personnel

$ 2,106

$ 2,033

$ 1,890

4 %

11 %

Occupancy

262

247

245

6 %

7 %

Equipment

415

412

384

1 %

8 %

Marketing

101

(14) %

2 %

Other

898

810

783

11 %

15 %

Total noninterest expense

$ 3,768

$ 3,603

$ 3,387

5 %

11 %

Integration expense

—

Noninterest expense, excluding integration expense

(non-GAAP)

$ 3,671

$ 3,603

$ 3,387

2 %

8 %

Noninterest expense for the first quarter of 2026 increased $165 million compared to the fourth quarter of 2025 and $381 million compared with the first quarter of 2025. In both comparisons, the increase included FirstBank operating and integration expenses. In comparison to the fourth quarter of 2025, the increase was partially offset by seasonally lower marketing spend. Compared to the first quarter of 2025, the increase was also the result of increased business activity and continued investments to support business growth.

The effective tax rate was 19.0% for the first quarter of 2026, 12.7% for the fourth quarter of 2025 and 18.8% for the first quarter of 2025. The fourth quarter of 2025 included the favorable resolution of several tax matters.

CONSOLIDATED BALANCE SHEET REVIEW

Loans

Change

1Q26 vs

In billions

1Q26

4Q25

1Q25

4Q25

1Q25

Average

Commercial and industrial

$ 211.4

$ 198.7

$ 184.0

6 %

15 %

Commercial real estate

34.4

30.2

33.1

14 %

4 %

Commercial

$ 245.7

$ 228.9

$ 217.1

7 %

13 %

Consumer

105.2

99.0

99.5

6 %

Average loans

$ 350.9

$ 327.9

$ 316.6

7 %

11 %

Quarter end

Commercial and industrial

$ 221.2

$ 202.9

$ 187.3

9 %

18 %

Commercial real estate

34.8

29.6

32.3

18 %

8 %

Commercial

$ 256.0

$ 232.5

$ 219.6

10 %

17 %

Consumer

105.0

99.0

99.3

6 %

Total loans

$ 360.9

$ 331.5

$ 318.9

9 %

13 %

Totals may not sum due to rounding

Average loans for the first quarter of 2026 increased $23.0 billion compared to the fourth quarter of 2025 and $34.3 billion compared to the first quarter of 2025.

Average commercial loans increased $16.8 billion and $28.6 billion compared to the fourth quarter of 2025 and the first quarter of 2025, respectively. In both comparisons, growth within the commercial and industrial portfolio was driven by strong new production, increased utilization and the addition of FirstBank loans. The increase in commercial real estate loans was attributable to acquired FirstBank loans.

Average consumer loans increased $6.1 billion and $5.6 billion compared to the fourth quarter of 2025 and the first quarter of 2025 driven by the benefit of acquired FirstBank residential mortgage loans.

Loans at March 31, 2026 increased $29.4 billion and $42.1 billion from December 31, 2025 and March 31, 2025, respectively. In both comparisons, the increase included $15.5 billion of FirstBank loans, comprised of $3.2 billion of commercial and industrial loans, $5.1 billion of commercial real estate loans and $7.2 billion of consumer loans. Excluding the impact of the FirstBank acquisition, growth in both comparisons was driven by strong activity across the legacy commercial and industrial portfolio. Compared to December 31, 2025, the increase was also attributable to modest growth in the legacy PNC commercial real estate portfolio.

Average Investment Securities

Change

1Q26 vs

In billions

1Q26

4Q25

1Q25

4Q25

1Q25

Available for sale

$ 71.6

$ 69.9

$ 65.7

2 %

9 %

Held to maturity

72.9

72.3

76.5

1 %

(5) %

Total

$ 144.5

$ 142.2

2 %

Average investment securities of $144.5 billion in the first quarter of 2026 increased $2.3 billion compared to both the fourth quarter of 2025 and the first quarter of 2025. In both comparisons, the increase reflected higher residential mortgage-backed securities.

The duration of the investment securities portfolio was 3.6 years as of March 31, 2026, 3.5 years as of December 31, 2025 and 3.4 years as of March 31, 2025. Net unrealized losses on available-for-sale securities were $2.1 billion at March 31, 2026, $1.8 billion at December 31, 2025 and $2.7 billion at March 31, 2025.

Average Deposits

Change

1Q26 vs

In billions

1Q26

4Q25

1Q25

4Q25

1Q25

Commercial

$ 229.6

$ 224.0

$ 206.5

3 %

11 %

Consumer

226.9

210.1

209.5

8 %

Brokered time deposits

1.9

5.4

4.7

(65) %

(60) %

Total

$ 458.4

$ 439.5

$ 420.6

4 %

9 %

IB % of total avg. deposits

78 %

NIB % of total avg. deposits

22 %

IB - Interest-bearing

NIB - Noninterest-bearing

Totals may not sum due to rounding

First quarter 2026 average deposits of $458.4 billion increased $18.8 billion compared to the fourth quarter of 2025 and $37.7 billion compared to the first quarter of 2025 driven by the addition of FirstBank deposits, partially offset by lower brokered time deposits.

Average Borrowed Funds

Change

1Q26 vs

In billions

1Q26

4Q25

1Q25

4Q25

1Q25

Total

$ 62.9

$ 60.3

$ 64.5

4 %

(3) %

Avg. borrowed funds to avg. liabilities

12 %

13 %

Average borrowed funds of $62.9 billion in the first quarter of 2026 increased $2.6 billion compared to the fourth quarter of 2025 and reflected increases in Federal Home Loan Bank advances. Average borrowed funds decreased $1.6 billion compared to the first quarter of 2025 primarily due to lower Federal Home Loan Bank advances, partially offset by higher senior debt outstanding.

Capital

March 31, 2026

December 31, 2025

March 31, 2025

Common shareholders' equity In billions

$ 57.8

$ 54.8

$ 50.7

Accumulated other comprehensive income (loss)

In billions

$ (3.8)

$ (3.4)

$ (5.2)

Basel III common equity tier 1 capital ratio *

10.1 %

10.6 %

*March 31, 2026 ratio is estimated.

PNC maintained a strong capital position. Common shareholders' equity at March 31, 2026 increased $3.0 billion from December 31, 2025 primarily due to common stock issuance related to the FirstBank acquisition.

As a Category III institution, PNC has elected to exclude accumulated other comprehensive income related to both available-for-sale securities and pension and other post-retirement plans from CET1 capital. Accumulated other comprehensive income was negative $3.8 billion at March 31, 2026 compared to negative $3.4 billion at December 31, 2025 and negative $5.2 billion at March 31, 2025. The change in each comparison reflected the impact of interest rate movements on securities and swaps and the continued accretion of unrealized losses.

In the first quarter of 2026, PNC returned $1.4 billion of capital to shareholders, reflecting $0.7 billion of dividends on common shares and $0.7 billion of common share repurchases. The Stress Capital Buffer (SCB) framework permits capital return in amounts in excess of SCB minimum levels. Consistent with this framework, PNC had approximately 32% of the 100 million common shares still available for repurchase at March 31, 2026 under the repurchase program previously approved by our board of directors.

Share repurchase activity in the second quarter of 2026 is expected to approximate $600 million to $700 million. PNC may adjust share repurchase activity depending on market and economic conditions, as well as other factors.

PNC's SCB for the four-quarter period beginning October 1, 2025 is the regulatory minimum of 2.5%. On April 2, 2026, the PNC board of directors declared a quarterly cash dividend on common stock of $1.70 per share to be paid on May 5, 2026 to shareholders of record at the close of business April 14, 2026.

At March 31, 2026, PNC was considered "well capitalized" based on applicable U.S. regulatory capital ratio requirements. For additional information regarding PNC's Basel III capital ratios, see Capital Ratios in the Consolidated Financial Highlights.

CREDIT QUALITY REVIEW

Credit Quality

Change

March 31,

2026

December 31,

2025

March 31,

2025

03/31/26 vs

In millions

12/31/25

03/31/25

Provision for credit losses (a)

$ 210

$ 139

$ 219

$ 71

$ (9)

Net loan charge-offs (a)

$ 253

$ 162

$ 205

56 %

23 %

Acquired net loan charge-offs

$ 45

—

Non-acquired net loan charge-offs

$ 208

$ 162

$ 205

28 %

1 %

Allowance for credit losses (b)

$ 5,495

$ 5,228

$ 5,218

5 %

Total delinquencies (c)

$ 1,558

$ 1,443

$ 1,431

8 %

9 %

Nonperforming loans

$ 2,243

$ 2,218

$ 2,292

1 %

(2) %

Net charge-offs to average loans

(annualized)

0.29 %

0.20 %

0.26 %

Acquired net loan charge-offs to average

loans (annualized)

0.05 %

—

Non-acquired net loan charge-offs to

average loans (annualized)

0.24 %

0.20 %

0.26 %

Allowance for credit losses to total loans

1.52 %

1.58 %

1.64 %

Nonperforming loans to total loans

0.62 %

0.67 %

0.72 %

(a) Represents amounts for the three months ended for each respective period

(b) Excludes allowances for investment securities and other financial assets

Provision for credit losses was $210 million in the first quarter of 2026 and reflected portfolio activity, including loan growth and the addition of FirstBank, as well as updates to macroeconomic factors. Provision for credit losses was $139 million in the fourth quarter of 2025 and $219 million in the first quarter of 2025.

Net loan charge-offs were $253 million in the first quarter of 2026, and included $45 million of acquired net loan charge-offs related to purchase accounting treatment for certain FirstBank loans. Excluding FirstBank acquired net loan charge-offs, net loan charge-offs were $208 million, or 0.24% annualized to average loans, increasing $46 million compared to the fourth quarter of 2025 due to higher commercial net loan charge-offs.

The allowance for credit losses was $5.5 billion at March 31, 2026, and $5.2 billion at December 31, 2025 and March 31, 2025. The allowance for credit losses as a percentage of total loans was 1.52% at March 31, 2026, 1.58% at December 31, 2025 and 1.64% at March 31, 2025.

Delinquencies at March 31, 2026 were $1.6 billion, increasing $115 million from December 31, 2025 and $127 million from March 31, 2025. In both comparisons the increase was primarily due to the addition of FirstBank commercial and consumer loans.

Nonperforming loans of $2.2 billion at March 31, 2026 were stable compared to December 31, 2025 and decreased modestly from March 31, 2025.

BUSINESS SEGMENT RESULTS

Business Segment Income (Loss)

In millions

1Q26

4Q25

1Q25

Retail Banking

$ 1,320

$ 1,241

$ 1,121

Corporate & Institutional Banking

1,400

1,514

1,244

Asset Management Group

118

121

105

Other

(1,078)

(856)

(989)

Net income excluding noncontrolling interests

$ 1,760

$ 2,020

$ 1,481

Retail Banking

Change

1Q26 vs

In millions

1Q26

4Q25

1Q25

4Q25

1Q25

Net interest income

$ 3,198

$ 2,989

$ 2,836

$ 209

$ 362

Noninterest income

$ 770

$ 706

—

$ 64

Noninterest expense

$ 2,115

$ 1,977

$ 1,902

$ 138

$ 213

Provision for credit losses

$ 124

$ 155

$ 168

$ (31)

$ (44)

Earnings

$ 1,320

$ 1,241

$ 1,121

$ 79

$ 199

In billions

Average loans

$ 110.9

$ 97.0

$ 97.8

$ 13.9

$ 13.1

Average deposits

$ 268.2

$ 244.1

$ 240.9

$ 24.1

$ 27.3

Net loan charge-offs In millions

$ 118

$ 116

$ 144

$ 2

$ (26)

Retail Banking Highlights

First quarter 2026 compared with fourth quarter 2025

First quarter 2026 compared with first quarter 2025

Corporate & Institutional Banking

Change

1Q26 vs

In millions

1Q26

4Q25

1Q25

4Q25

1Q25

Net interest income

$ 1,838

$ 1,856

$ 1,652

$ (18)

$ 186

Noninterest income

$ 1,144

$ 1,210

$ 978

$ (66)

$ 166

Noninterest expense

$ 1,076

$ 1,107

$ 956

$ (31)

$ 120

Provision for credit losses

$ 77

$ 14

$ 49

$ 63

$ 28

Earnings

$ 1,400

$ 1,514

$ 1,244

$ (114)

$ 156

In billions

Average loans

$ 223.5

$ 214.6

$ 202.2

$ 8.9

$ 21.3

Average deposits

$ 161.2

$ 163.8

$ 148.0

$ (2.6)

$ 13.2

Net loan charge-offs In millions

$ 92

$ 49

$ 64

$ 43

$ 28

Corporate & Institutional Banking Highlights

First quarter 2026 compared with fourth quarter 2025

First quarter 2026 compared with first quarter 2025

Asset Management Group

Change

1Q26 vs

In millions

1Q26

4Q25

1Q25

4Q25

1Q25

Net interest income

$ 189

$ 180

$ 174

$ 9

$ 15

Noninterest income

$ 262

$ 260

$ 243

$ 2

$ 19

Noninterest expense

$ 292

$ 293

$ 279

$ (1)

$ 13

Provision for (recapture of) credit losses

$ 5

$ (11)

$ 1

$ 16

$ 4

Earnings

$ 118

$ 121

$ 105

$ (3)

$ 13

In billions

Discretionary client assets under management

$ 230

$ 234

$ 210

$ (4)

$ 20

Nondiscretionary client assets under administration

$ 233

$ 238

$ 201

$ (5)

$ 32

Client assets under administration at quarter end

$ 463

$ 472

$ 411

$ (9)

$ 52

In billions

Average loans

$ 14.4

$ 14.1

$ 14.0

$ 0.3

$ 0.4

Average deposits

$ 27.7

$ 27.0

$ 27.6

$ 0.7

$ 0.1

Asset Management Group Highlights

First quarter 2026 compared with fourth quarter 2025

First quarter 2026 compared with first quarter 2025

Other

The "Other" category, for the purposes of this release, includes remaining corporate operations that do not meet the criteria for disclosure as a separate reportable business, such as asset and liability management activities, including net securities gains or losses, ACL for investment securities, certain trading activities, certain runoff consumer loan portfolios, private equity investments, intercompany eliminations, corporate overhead net of allocations, tax adjustments that are not allocated to business segments, exited businesses and the residual impact from funds transfer pricing operations.

CONFERENCE CALL AND SUPPLEMENTAL FINANCIAL INFORMATION

PNC Chairman and Chief Executive Officer William S. Demchak and Executive Vice President and Chief Financial Officer Robert Q. Reilly will hold a conference call for investors today at 10:00 a.m. Eastern Time regarding the topics addressed in this news release and the related earnings materials. Dial-in numbers for the conference call are (866) 604-1697 and (215) 268-9875 (international) and Internet access to the live audio listen-only webcast of the call is available at www.pnc.com/investorevents. PNC's first quarter 2026 earnings materials to accompany the conference call remarks will be available at www.pnc.com/investorevents prior to the beginning of the call. A telephone replay of the call will be available for 30 days at (877) 660-6853 and (201) 612-7415 (international), Access ID 13758610 and a replay of the audio webcast will be available on PNC's website for 30 days.

The PNC Financial Services Group, Inc. is one of the largest diversified financial services institutions in the United States, organized around its customers and communities for strong relationships and local delivery of retail and business banking including a full range of lending products; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management. For information about PNC, visit www.pnc.com.

CONTACTS

MEDIA:

Anne Pace

(631) 338-3268

[email protected]

INVESTORS:

Bryan Gill

(412) 768-4143

[email protected]

[TABULAR MATERIAL FOLLOWS]

The PNC Financial Services Group, Inc.

Consolidated Financial Highlights

(Unaudited)

FINANCIAL RESULTS

Three months ended

Dollars in millions, except per share data

March 31

December 31

March 31

2026

2025

Revenue

Net interest income

$ 3,961

$ 3,731

$ 3,476

Noninterest income

2,204

2,340

1,976

Total revenue

6,165

6,071

5,452

Provision for credit losses

210

139

219

Noninterest expense

3,768

3,603

3,387

Income before income taxes and noncontrolling interests

$ 2,187

$ 2,329

$ 1,846

Income taxes

415

296

347

Net income

$ 1,772

$ 2,033

$ 1,499

Less:

Net income attributable to noncontrolling interests

Preferred stock dividends (a)

Preferred stock discount accretion and redemptions

Net income attributable to common shareholders

$ 1,686

$ 1,934

$ 1,408

Less: Dividends and undistributed earnings allocated to nonvested restricted shares

Net income attributable to diluted common shareholders

$ 1,675

$ 1,922

$ 1,399

Per Common Share

Basic

$ 4.13

$ 4.88

$ 3.52

Diluted

$ 4.13

$ 4.88

$ 3.51

Cash dividends declared per common share

$ 1.70

$ 1.60

Effective tax rate (b)

19.0 %

12.7 %

18.8 %

PERFORMANCE RATIOS

Net interest margin (c)

2.95 %

2.84 %

2.78 %

Noninterest income to total revenue

36 %

39 %

36 %

Efficiency (d)

61 %

59 %

62 %

Return on:

Average common shareholders' equity

11.92 %

14.33 %

11.60 %

Average assets

1.19 %

1.40 %

1.09 %

(a)

Dividends are payable quarterly, other than Series S preferred stock, which is payable semiannually.

(b)

The effective income tax rates are generally lower than the statutory rate due to the relationship of pretax income to tax credits and earnings that are not subject to tax.

(c)

Net interest margin is the total yield on interest-earning assets minus the total rate on interest-bearing liabilities and includes the benefit from use of noninterest-bearing sources. To provide more meaningful comparisons of net interest margins, we use net interest income on a taxable-equivalent basis in calculating average yields used in the calculation of net interest margin by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under generally accepted accounting principles (GAAP) in the Consolidated Income Statement. The taxable-equivalent adjustments to net interest income for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025 were $29 million, $31 million and $28 million, respectively.

(d)

Calculated as noninterest expense divided by total revenue.

The PNC Financial Services Group, Inc.

Consolidated Financial Highlights (Unaudited)

March 31

December 31

March 31

2026

2025

BALANCE SHEET DATA

Dollars in millions, except per share data and as noted

Assets

$ 603,028

$ 573,572

$ 554,722

Loans (a)

$ 360,923

$ 331,481

$ 318,850

Allowance for loan and lease losses

$ 4,663

$ 4,410

$ 4,544

Interest-earning deposits with banks

$ 26,053

$ 32,936

$ 32,298

Investment securities

$ 143,112

$ 138,240

$ 137,775

Total deposits (a)

$ 457,648

$ 440,866

$ 422,915

Borrowed funds (a)

$ 66,666

$ 57,101

$ 60,722

Allowance for unfunded lending related commitments

$ 832

$ 818

$ 674

Total shareholders' equity

$ 63,627

$ 60,585

$ 56,405

Common shareholders' equity

$ 57,752

$ 54,828

$ 50,654

Accumulated other comprehensive income (loss)

$ (3,773)

$ (3,408)

$ (5,237)

Book value per common share

$ 143.65

$ 140.44

$ 127.98

Tangible book value per common share (non-GAAP) (b)

$ 109.42

$ 112.51

$ 100.40

Period end common shares outstanding (In millions)

402

390

396

Loans to deposits

79 %

75 %

Common shareholders' equity to total assets

9.6 %

9.1 %

CLIENT ASSETS (In billions)

Discretionary client assets under management

$ 230

$ 234

$ 210

Nondiscretionary client assets under administration

233

238

201

Total client assets under administration

463

472

411

Brokerage account client assets

Total client assets

$ 556

$ 566

$ 497

CAPITAL RATIOS

Basel III (c)

Common equity tier 1

10.1 %

10.6 %

Tier 1 risk-based

11.3 %

11.9 %

Total capital risk-based

13.1 %

13.5 %

13.7 %

Leverage

9.1 %

9.4 %

9.2 %

Supplementary leverage

7.4 %

7.6 %

ASSET QUALITY

Nonperforming loans to total loans

0.62 %

0.67 %

0.72 %

Nonperforming assets to total loans, OREO, foreclosed and other assets (d)

0.66 %

0.71 %

0.73 %

Nonperforming assets to total assets

0.40 %

0.41 %

0.42 %

Net charge-offs to average loans (for the three months ended) (annualized)

0.29 %

0.20 %

0.26 %

Allowance for loan and lease losses to total loans

1.29 %

1.33 %

1.43 %

Allowance for credit losses to total loans (e)

1.52 %

1.58 %

1.64 %

Allowance for loan and lease losses to nonperforming loans

208 %

199 %

198 %

Total delinquencies (In millions) (f)

$ 1,558

$ 1,443

$ 1,431

(a)

Amounts include assets and liabilities for which we have 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 Consolidated Balance Sheet line items.

(b)

See the Tangible Book Value per Common Share table on page 18 for additional information.

(c)

All ratios are calculated using the regulatory capital methodology applicable to PNC during each period presented and calculated based on the standardized approach. See Capital Ratios on page 16 for additional information. The ratios as of March 31, 2026 are estimated.

(d)

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

(e)

Excludes allowances for investment securities and other financial assets.

(f)

Total delinquencies represent accruing loans 30 days or more past due.

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

CAPITAL RATIOS

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

Our Basel III capital ratios may be impacted by changes to the regulatory capital rules and additional regulatory guidance or analysis. The following table summarizes our December 31, 2025, March 31, 2025 and estimated March 31, 2026 capital balances and ratios.

Basel lll Common Equity Tier 1 Capital Ratios

Basel III

March 31

2026

(estimated)

December 31

2025

March 31

2025

Dollars in millions

Common stock, related surplus and retained earnings, net of treasury stock

$ 61,523

$ 58,235

$ 55,891

Less regulatory capital adjustments:

Goodwill and disallowed intangibles, net of deferred tax liabilities

(13,757)

(10,901)

(10,914)

All other adjustments

(82)

(75)

(84)

Basel III Common equity tier 1 capital

$ 47,684

$ 47,259

$ 44,893

Basel III standardized approach risk-weighted assets (a)

$ 472,733

$ 444,438

$ 423,931

Basel III Common equity tier 1 capital ratio

10.1 %

10.6 %

(a)

Basel III standardized approach risk-weighted assets are based on the Basel III standardized approach rules and include credit and market risk-weighted assets.

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

NON-GAAP MEASURES

Fee Income (non-GAAP)

Three months ended

March 31

December 31

March 31

Dollars in millions

2026

2025

Noninterest income

Asset management and brokerage

$ 420

$ 411

$ 391

Capital markets and advisory

463

489

306

Card and cash management

738

733

692

Lending and deposit services

340

342

316

Residential and commercial mortgage

118

148

134

Fee income (non-GAAP)

$ 2,079

$ 2,123

$ 1,839

Other income

125

217

137

Total noninterest income

$ 2,204

$ 2,340

$ 1,976

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

Pretax Pre-Provision Earnings (non-GAAP)

Pretax Pre-Provision Earnings Excluding Integration Costs (non-GAAP)

Three months ended

March 31

December 31

March 31

Dollars in millions

2026

2025

Income before income taxes and noncontrolling interests

$ 2,187

$ 2,329

$ 1,846

Provision for credit losses

210

139

219

Pretax pre-provision earnings (non-GAAP)

$ 2,397

$ 2,468

$ 2,065

Integration costs

—

Pretax pre-provision earnings excluding integration costs (non-GAAP)

$ 2,495

$ 2,468

$ 2,065

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

Pretax pre-provision earnings excluding integration costs is a non-GAAP measure and is based on adjusting pretax pre-provision earnings to exclude integration costs related to the FirstBank acquisition during the period. We believe that pretax, pre-provision earnings excluding integration costs is a useful tool in understanding PNC's results by providing greater comparability between periods, as well as demonstrating the effect of significant items.

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

Adjusted Diluted Earnings per Common Share Excluding Integration Costs (non-GAAP)

Three months ended

March 31

Per Common

Dollars in millions, except per share data

2026

Net income attributable to diluted common shareholders

$ 1,675

$ 4.13

Integration costs after tax (a)

0.19

Adjusted net income attributable to diluted common shareholders excluding integration costs (non-GAAP)

$ 1,752

$ 4.32

Average diluted common shares outstanding (In millions)

405

(a)

Statutory tax rate of 21% used to calculate impacts.

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

Tangible Book Value per Common Share (non-GAAP)

March 31

December 31

March 31

Dollars in millions, except per share data

2026

2025

Book value per common share

$ 143.65

$ 140.44

$ 127.98

Tangible book value per common share

Common shareholders' equity

$ 57,752

$ 54,828

$ 50,654

Goodwill and other intangible assets

(14,174)

(11,138)

(11,154)

Deferred tax liabilities on goodwill and other intangible assets

416

237

239

Tangible common shareholders' equity

$ 43,994

$ 43,927

$ 39,739

Period-end common shares outstanding (In millions)

402

390

396

Tangible book value per common share (non-GAAP)

$ 109.42

$ 112.51

$ 100.40

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

Taxable-Equivalent Net Interest Income (non-GAAP)

Three months ended

March 31

December 31

March 31

Dollars in millions

2026

2025

Net interest income

$ 3,961

$ 3,731

$ 3,476

Taxable-equivalent adjustments

Net interest income (Fully Taxable-Equivalent - FTE) (non-GAAP)

$ 3,990

$ 3,762

$ 3,504

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

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

Noninterest Expense Excluding Integration Expense (non-GAAP)

Efficiency Ratio Excluding Integration Costs (non-GAAP)

Three months ended

March 31

December 31

Change

March 31

Change

Dollars in millions

2026

2025

2026

2025

Noninterest expense

$ 3,768

$ 3,603

$ 165

5 %

$ 3,768

$ 3,387

$ 381

11 %

Integration expense

(97)

—

(97)

—

Noninterest expense excluding

integration expense (non-GAAP)

$ 3,671

$ 3,603

$ 68

2 %

$ 3,671

$ 3,387

$ 284

8 %

Total revenue

$ 6,165

$ 6,071

$ 94

2 %

$ 6,165

$ 5,452

$ 713

13 %

Integration costs - contra revenue

(1)

—

(1)

—

Total revenue excluding integration

costs - contra revenue (non-GAAP)

$ 6,166

$ 6,071

$ 95

2 %

$ 6,166

$ 5,452

$ 714

13 %

Efficiency ratio (a)

61 %

59 %

61 %

62 %

Efficiency ratio excluding

integration costs (non-GAAP) (b)

60 %

59 %

60 %

62 %

(a)

Calculated as noninterest expense divided by total revenue.

(b)

Calculated as noninterest expense excluding integration expense divided by total revenue excluding integration costs - contra revenue.

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

The efficiency ratio excluding integration costs is a non-GAAP measure and excludes the integration costs related to the FirstBank acquisition. It is calculated based on adjusting the efficiency ratio calculation by excluding integration costs during the period from noninterest expense and total revenue. We believe that this non-GAAP measure is a useful tool for the purpose of evaluating PNC's results.

Cautionary Statement Regarding Forward-Looking Information

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

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

Our forward-looking statements are subject to the following principal risks and uncertainties.

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

SOURCE The PNC Financial Services Group, Inc.