Item 1. FINANCIAL STATEMENTS (UNAUDITED)

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Item 1. FINANCIAL STATEMENTS (UNAUDITED)

CONSOLIDATED INCOME STATEMENT

THE PNC FINANCIAL SERVICES GROUP, INC.


Unaudited	Three months ended June 30				Six months ended June 30
In millions, except per share data	2026		2025		2026		2025
Interest Income
Loans	$	4,986	$	4,609	$	9,778	$	9,081
Investment securities	1,263		1,151		2,465		2,275
Other	445		510		895		1,044
Total interest income	6,694		6,270		13,138		12,400
Interest Expense
Deposits	1,682		1,845		3,417		3,653
Borrowed funds	905		870		1,653		1,716
Total interest expense	2,587		2,715		5,070		5,369
Net interest income	4,107		3,555		8,068		7,031
Noninterest Income
Asset management and brokerage	440		391		860		782
Capital markets and advisory	577		321		1,040		627
Card and cash management	772		737		1,510		1,429
Lending and deposit services	346		317		686		633
Residential and commercial mortgage	144		128		262		262
Other income
Gain on Visa shares exchange program	448		—		448		—
Securities gains (losses)	(139)		—		(111)		(2)
Other	180		212		277		351
Total other income	489		212		614		349
Total noninterest income	2,768		2,106		4,972		4,082
Total revenue	6,875		5,661		13,040		11,113
Provision For Credit Losses	191		254		401		473
Noninterest Expense
Personnel	2,273		1,889		4,379		3,779
Occupancy	252		235		514		480
Equipment	435		394		850		778
Marketing	110		99		197		184
Other	1,028		766		1,926		1,549
Total noninterest expense	4,098		3,383		7,866		6,770
Income before income taxes and noncontrolling interests	2,586		2,024		4,773		3,870
Income taxes	531		381		946		728
Net income	2,055		1,643		3,827		3,142
Less: Net income attributable to noncontrolling interests	15		16		27		34
Preferred stock dividends	85		83		158		154
Preferred stock discount accretion and redemptions	2		2		3		4
Net income attributable to common shareholders	$	1,953	$	1,542	$	3,639	$	2,950
Earnings Per Common Share
Basic	$	4.82	$	3.86	$	8.95	$	7.37
Diluted	$	4.81	$	3.85	$	8.94	$	7.37
Average Common Shares Outstanding
Basic	403		397		404		398
Diluted	403		397		404		398

See accompanying Notes to Consolidated Financial Statements.

46 The PNC Financial Services Group, Inc. – Form 10-Q

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

THE PNC FINANCIAL SERVICES GROUP, INC.


Unaudited In millions		Three months ended June 30					Six months ended June 30
2026	2025			2026		2025
Net income		$	2,055	$	1,643		$	3,827	$	3,142
Other comprehensive income (loss), before tax and net of reclassifications into Net income
Net change in debt securities		109		263			(50)		1,192
Net change in cash flow hedge derivatives		(556)		485			(888)		1,310
Pension and other postretirement benefit plan adjustments		(6)		(19)			2		(21)
Net change in Other		(5)		(2)			(4)		(3)
Other comprehensive income (loss), before tax and net of reclassifications into Net income		(458)		727			(940)		2,478
Income tax benefit (expense) related to items of other comprehensive income		111		(172)			228		(595)
Other comprehensive income (loss), after tax and net of reclassifications into Net income		(347)		555			(712)		1,883





Comprehensive income		1,708		2,198			3,115		5,025
Less: Comprehensive income attributable to noncontrolling interests		15		16			27		34
Comprehensive income attributable to PNC		$	1,693	$	2,182		$	3,088	$	4,991

See accompanying Notes to Consolidated Financial Statements.

The PNC Financial Services Group, Inc. – Form 10-Q 47

CONSOLIDATED BALANCE SHEET

THE PNC FINANCIAL SERVICES GROUP, INC.


Unaudited	June 30, 2026		December 31, 2025
In millions, except par value
Assets
Cash and due from banks	$	5,951	$	6,777
Interest-earning deposits with banks	22,794		32,936
Loans held for sale (a)	1,522		1,939
Investment securities – available-for-sale	71,100		68,135
Investment securities – held-to-maturity	78,406		70,105
Loans (a)	367,953		331,481
Allowance for loan and lease losses	(4,652)		(4,410)
Net loans	363,301		327,071
Equity investments	11,735		10,790
Mortgage servicing rights	3,801		3,659
Goodwill	13,317		10,959
Other (a)	44,107		41,201
Total assets	$	616,034	$	573,572
Liabilities
Deposits
Noninterest-bearing	$	99,356	$	91,748
Interest-bearing (b)	350,436		349,118
Total deposits	449,792		440,866
Borrowed funds
Federal Home Loan Bank advances	40,416		13,000
Senior debt	38,144		38,642
Subordinated debt	4,396		3,016
Other (b)	2,767		2,443
Total borrowed funds	85,723		57,101
Allowance for unfunded lending related commitments	809		818
Accrued expenses and other liabilities (b)	15,649		14,151
Total liabilities	551,973		512,936
Equity
Preferred stock (c)	—		—
Common stock ($5 par value, Authorized 800,000,000 shares, issued 557,291,838 and 543,497,966 shares)	2,786		2,717
Capital surplus	21,999		18,922
Retained earnings	65,518		63,266
Accumulated other comprehensive income (loss)	(4,120)		(3,408)
Common stock held in treasury at cost: 157,826,113 and 153,084,091 shares	(22,175)		(20,912)
Total shareholders’ equity	64,008		60,585
Noncontrolling interests	53		51
Total equity	64,061		60,636
Total liabilities and equity	$	616,034	$	573,572

(a)Our consolidated assets included the following for which we have elected the fair value option: Loans held for sale of $1.3 billion, Loans held for investment of $1.1 billion and Other assets of $0.1 billion at June 30, 2026. Comparable amounts at December 31, 2025 were $1.7 billion, $1.1 billion and $0.2 billion, respectively.

(b)Our consolidated liabilities included the following for which we have elected the fair value option: Interest-bearing deposits of $0.8 billion, Other borrowed funds of less than $0.1 billion and Other liabilities of $0.1 billion at June 30, 2026. Comparable amounts at December 31, 2025 were $3.6 billion, less than $0.1 billion and $0.1 billion, respectively.

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

See accompanying Notes to Consolidated Financial Statements.

48 The PNC Financial Services Group, Inc. – Form 10-Q

CONSOLIDATED STATEMENT OF CASH FLOWS

THE PNC FINANCIAL SERVICES GROUP, INC.


Unaudited In millions	Six months ended June 30
2026	2025
Operating Activities
Net income	$	3,827	$	3,142
Adjustments to reconcile net income to net cash provided (used) by operating activities
Provision for credit losses	401		473
Depreciation, amortization and accretion	173		172
Deferred income taxes (benefit)	152		(58)
Net losses on sales of securities	111		2
Changes in fair value of mortgage servicing rights	185		328

Gain on Visa shares exchange program	(448)		—

Net change in
Trading securities and other short-term investments	(187)		(1,646)
Loans held for sale and related securitization activity	377		(955)
Other assets	(285)		1,782
Accrued expenses and other liabilities	(1,284)		(2,395)
Other operating activities, net	1,053		126
Net cash provided (used) by operating activities	$	4,075	$	971
Investing Activities
Sales
Securities available-for-sale	$	11,977	$	1,331

Loans	403		293
Repayments/maturities
Securities available-for-sale	4,406		3,392
Securities held-to-maturity	6,582		6,843
Purchases
Securities available-for-sale	(13,672)		(9,045)
Securities held-to-maturity	(11,066)		(3,979)
Loans	(1,128)		(853)
Net change in federal funds sold and resale agreements	501		(188)

Other changes in loans, net	(20,490)		(9,812)
Net cash paid for acquisition (a)	(80)		—
Other investing activities, net	(3,079)		(670)
Net cash provided (used) by investing activities	$	(25,646)	$	(12,688)

The PNC Financial Services Group, Inc. – Form 10-Q 49

CONSOLIDATED STATEMENT OF CASH FLOWS

THE PNC FINANCIAL SERVICES GROUP, INC.


(Continued from previous page)
Unaudited In millions	Six months ended June 30
2026	2025
Financing Activities
Net change in
Noninterest-bearing deposits	$	(2,282)	$	613
Interest-bearing deposits	(11,862)		(654)
Federal funds purchased and repurchase agreements	(44)		(36)
Short-term Federal Home Loan Bank advances	4,000		—

Other borrowed funds	198		149
Sales/issuances
Federal Home Loan Bank advances	28,000		3,000
Senior debt	4,211		5,237
Subordinated debt	1,495		—


Common and treasury stock	34		34
Repayments/maturities
Federal Home Loan Bank advances	(6,000)		(7,000)
Senior debt	(4,250)		(2,750)
Subordinated debt	(71)		(700)



Acquisition of treasury stock	(1,418)		(598)
Preferred stock cash dividends paid	(158)		(154)
Common stock cash dividends paid	(1,387)		(1,281)
Other financing activities, net	137		—
Net cash provided (used) by financing activities	$	10,603	$	(4,140)
Net Increase (Decrease) In Cash, Cash Equivalents And Restricted Cash	$	(10,968)	$	(15,857)


Cash, cash equivalents and restricted cash at beginning of period	39,713		46,251
Cash, cash equivalents and restricted cash at end of period (b)	$	28,745	$	30,394





Supplemental Disclosures (c)
Interest paid	$	5,138	$	5,511


Leased assets obtained in exchange for new operating lease liabilities	$	331	$	149

Non-cash Investing And Financing Items

Transfer from loans to loans held for sale, net	$	80	$	108

Transfer from loans to foreclosed assets	$	23	$	21
Common stock issuances for acquisition	$	2,943	$	—
Preferred stock issuances for acquisition	$	119	$	—

(a)Cash paid to acquire FirstBank was $1,238 million. The amount of $80 million represents the cash paid for the acquisition less $162 million in Cash and due from banks and $996 million in Interest-earning deposits with banks acquired from FirstBank. See Note 2 Acquisition Activity for more detailed information on the FirstBank acquisition.

(b)Includes restricted cash at end of period of $882 million and $992 million for the six months ended June 30, 2026 and 2025, respectively.

(c)Disclosures of income taxes paid (net of refunds) are presented in the Income Taxes Note of our Form 10-K pursuant to our adoption of ASU 2023-09. See Note 1 Accounting Policies in our 2025 Form 10-K for additional information related to our adoption of this ASU.

See accompanying Notes to Consolidated Financial Statements.

50 The PNC Financial Services Group, Inc. – Form 10-Q

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

THE PNC FINANCIAL SERVICES GROUP, INC.

Unaudited

See page 102 for a glossary of certain terms and acronyms used in this Report.

B****USINESS

PNC is one of the largest diversified financial services companies in the U.S. and is headquartered in Pittsburgh, Pennsylvania.

We have businesses engaged in retail banking, corporate and institutional banking and asset management, providing many of our products and services nationally. Our retail branch network is located coast-to-coast. We also have strategic international offices in four countries outside the U.S.

N****OTE 1 A****CCOUNTING P****OLICIES

Basis of Financial Statement Presentation

Our consolidated financial statements include the accounts of the parent company and its subsidiaries, most of which are wholly-owned, certain partnership interests and VIEs.

On January 5, 2026, we acquired FirstBank Holding Company, including its banking subsidiary, FirstBank. Our results for the three and six months ended June 30, 2026 reflect FirstBank’s acquired business operations for the period since the acquisition closed on January 5, 2026, and our balance sheet at June 30, 2026 includes FirstBank balances. See Note 2 Acquisition Activity for additional information on this acquisition.

We prepared these consolidated financial statements in accordance with GAAP. We have eliminated intercompany accounts and transactions. We have also reclassified certain prior-year amounts to conform to the current period presentation, which did not have a

material impact on our consolidated financial condition or results of operations.

In our opinion, the unaudited interim consolidated financial statements reflect all normal, recurring adjustments needed to state fairly our results for the interim periods. The results of operations for interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period.

We have also considered the impact of subsequent events on these consolidated financial statements through the date of issuance of the consolidated financials.

When preparing these unaudited interim consolidated financial statements, we have assumed that you have read the audited consolidated financial statements included in our 2025 Form 10-K. Reference is made to Note 1 Accounting Policies in our 2025 Form 10-K for a detailed description of significant accounting policies. These interim consolidated financial statements serve to update our 2025 Form 10-K and may not include all information and Notes necessary to constitute a complete set of financial statements.

Loans

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

Allowance for Credit Losses

Purchased Seasoned Loans

On January 1, 2026, we adopted ASU 2025-08 - Financial Instruments - Credit Losses (Topic 326): Purchased Loans, which expanded the population of acquired financial assets subject to the gross-up approach. Purchased seasoned loans, or PSLs, are 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 at least 90 days after origination and PNC was not involved in the origination of the loan. All loans (excluding credit cards) that are acquired without credit deterioration through a business combination are deemed seasoned.

The PNC Financial Services Group, Inc. – Form 10-Q 51

The allowance for PSLs is determined at the time of acquisition, as the estimated expected credit loss of the outstanding balance or par value, based on the methodologies described in our 2025 Form 10-K for loans. In accordance with CECL, the allowance recognized at acquisition is added to the acquisition date purchase price to determine the asset’s amortized cost basis.

Use of Estimates

We prepared these consolidated financial statements using financial information available at the time of preparation, which requires us to make estimates and assumptions that affect the amounts reported. Our most significant estimates pertain to the ACL and our fair value measurements. Actual results may differ from the estimates, and the differences may be material to the consolidated financial statements.

Recently Adopted Accounting Standards


Accounting Standards Update			Description			Financial Statement Impact
Purchased Loans - ASU 2025-08 Issued November 2025			• Required effective date of January 1, 2027; early adoption is permitted. • Expands the population of acquired financial assets subject to the gross-up approach, which requires recognition of an ACL for the estimate of credit losses at the acquisition date. • Clarifies that loans (excluding credit cards) acquired without credit deterioration and deemed “seasoned” are purchased seasoned loans and accounted for using the gross-up approach at acquisition. • Requires entities to evaluate whether loans acquired in an asset acquisition (or initially recognized through the consolidation of a VIE) are deemed “seasoned”. A loan is seasoned if it was purchased at least 90 days after origination and the acquirer was not involved in the origination of the loan. All loans (excluding credit cards) that are acquired without credit deterioration through a business combination are deemed “seasoned”. • Requires a prospective transition approach; the ASU is applied to loans that are acquired on or after the initial application date.			• We adopted this ASU on January 1, 2026. • Adoption of this ASU resulted in more acquired loans using the gross-up approach, primarily through our acquisition of FirstBank; under the gross-up approach, a reserve is established through an increase to the loan’s amortized cost basis, thus avoiding the need to provide for a reserve on these acquired loans through Provision for credit losses. See Note 2 Acquisition Activity for more information on our acquisition of FirstBank. Otherwise, this ASU did not materially impact our Consolidated Income Statement, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Consolidated Statement of Changes in Equity or Consolidated Statement of Cash Flows.

N****OTE 2 A****CQUISITION A****CTIVITY

Acquisition of FirstBank Holding Company

On January 5, 2026, PNC acquired FirstBank Holding Company including its banking subsidiary, FirstBank, representing $4.2 billion of consideration in cash and PNC common stock to FirstBank Holding Company common shareholders and Series A preferred shareholders, and $0.1 billion of consideration to Series B preferred shareholders through the exchange of each share of Series B preferred stock into a newly created series of preferred stock of PNC, designated Series X. This acquisition accelerates our expansion in Colorado and Arizona.

In June 2026, PNC converted approximately 780,000 customers, more than 1,620 employees and 95 branches across Colorado and Arizona, merging FirstBank into PNC Bank.

PNC has accounted for this transaction as a business combination. Accordingly, the assets and liabilities from FirstBank were recorded at fair value as of the acquisition date. The determination of fair value requires management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change. Fair value estimates related to the assets and liabilities from FirstBank are subject to adjustment for up to one year after the closing date of the acquisition as additional information becomes available. Valuations subject to adjustment include, but are not limited to, loans, certain deposits, certain other assets and the core deposit intangibles.

PNC incurred total integration costs of $127 million for the three months ended June 30, 2026, of which $121 million was reflected in expenses and $6 million was reflected in revenue. For the six months ended June 30, 2026, PNC incurred $225 million in total integration costs, of which $218 million was reflected in expenses and $7 million was reflected in revenue. These costs were primarily within personnel, advisory and legal expense.

52 The PNC Financial Services Group, Inc. – Form 10-Q

The following table includes the preliminary fair value of the identifiable tangible and intangible assets and liabilities from FirstBank:

Table 40: Acquisition Consideration


	January 5, 2026
In millions, except share data	Fair Value
Acquisition consideration
Common stock issued (13,715,133 shares) (a)	$	2,943
Preferred stock issued (115,200 shares)	119
Cash paid	1,238
Total consideration	$	4,300
Assets
Cash and due from banks	$	162
Interest-earning deposits with banks	996

Investment securities	8,278
Net loans	15,177


Core deposit intangible	761
Other	1,282
Total assets	$	26,656
Liabilities
Deposits	$	23,076

Borrowed funds and other	1,638
Total liabilities	$	24,714

Net assets	$	1,942
Goodwill (b)	$	2,358

(a) Amount includes $29 million of deferred restricted stock compensation and $13 million withheld to satisfy certain tax obligations.

(b) Includes immaterial measurement period adjustments recorded in the second quarter.

Preliminary goodwill of $2.4 billion recorded in connection with the transaction resulted from the reputation, operating model and expertise of FirstBank. The amount of goodwill recorded reflected the increased market share and related synergies that resulted from the acquisition and represents the excess purchase price over the estimated fair value of the net assets from FirstBank. The goodwill was allocated to our Retail Banking segment and is not deductible for income tax purposes. See Note 6 Goodwill and Mortgage Servicing Rights for additional information on our goodwill.

The following table includes the fair value and unpaid principal balance of the loans from the FirstBank acquisition.

Table 41: Fair Value and Unpaid Principal Balance of Loans from the FirstBank Acquisition


	January 5, 2026
In millions	Unpaid Principal Balance (a)		Fair Value
Loans
Commercial
Commercial and industrial	$	3,354	$	3,165
Commercial real estate	5,163		4,835

Total commercial	8,517		8,000
Consumer
Residential real estate	7,061		6,615
Home equity	499		477


Credit card and other consumer	93		85
Total consumer	7,653		7,177
Total	$	16,170	$	15,177

(a) Amounts exclude $45 million of acquired loan net charge-offs on certain loans previously charged off by FirstBank, which were written up upon acquisition to unpaid principal balance as required by purchase accounting.

The following is a description of the methods used to determine the fair values of significant assets acquired and liabilities assumed in the acquisition.

Cash and Due from Banks and Interest-earning Deposits with Banks

The carrying amount of these assets is a reasonable estimate of fair value based on the short-term nature of these assets.

The PNC Financial Services Group, Inc. – Form 10-Q 53

Investment Securities

Investment securities were classified either in the held-to-maturity portfolio or the available-for-sale portfolio based on management’s intent, and in the case of held-to-maturity, the ability to hold the securities to maturity. Fair values for investment securities were determined using third-party pricing services, dealer quotes, or subsequent sale prices and were subject to price validation testing independent of the risk-taking function. See Note 14 Fair Value in our 2025 Form 10-K for more information on the valuation methodologies used to determine fair values for investment securities.

Loans

Fair value for loans is based on a discounted cash flow methodology that considered credit loss and prepayment expectations, market interest rates and other market factors, such as liquidity, from the perspective of a market participant. Loan cash flows were generated on an individual loan basis. The PD, LGD, exposure at default and prepayment assumptions are the key factors driving credit losses which are embedded into the estimated cash flows.

Core Deposit Intangible

This intangible asset represents the value of certain client deposit relationships. The fair value was estimated utilizing the cost method. Appropriate consideration was given to deposit costs including servicing costs, client retention and alternative funding source costs at the time of acquisition. The discount rate used was derived taking into account the estimated cost of equity, risk-free return rate and risk premium for the market and specific risk related to the asset’s cash flows. The core deposit intangible is being amortized over 10 years using an accelerated amortization methodology.

Deposits

The fair values for time deposits were estimated by discounting contractual cash flows using current market rates for instruments with similar maturities. For deposits with no defined maturity, carrying values approximate fair values.

Purchased Loan Activity

Under CECL, PNC is required to determine whether purchased loans held for investment have experienced more-than-insignificant deterioration in credit quality since origination. PNC considers a variety of factors in connection with the identification of more-than-insignificant deterioration in credit quality, or PCD, including but not limited to nonperforming status, delinquency, risk ratings, FDM classification, and other qualitative factors that indicate deterioration in credit quality since origination. PNC established the initial ACL for PCD loans through an adjustment to FirstBank loan balances and the related purchase accounting mark. The non-credit discount is accreted through Interest income using the effective interest rate method over the contractual life of the loan. In accordance with GAAP, there was no carryover of the ACL that had been previously recorded by FirstBank. The following table presents PCD loans as of January 5, 2026.

Table 42: PCD Loan Activity


	January 5, 2026
In millions
Principal balance	$	415
ACL at acquisition	(93)
Non-credit discount	(11)
Purchase price	$	311

On January 1, 2026, we adopted ASU 2025-08 and established the initial ACL for PSLs through an adjustment to FirstBank loan balances and the related purchase accounting mark. The non-credit discount is accreted through Interest income using the effective interest rate method over the contractual life of the loan. In a business combination, all loans acquired that are not identified as PCD are classified as “seasoned,” or PSLs, with the exception of credit cards. The following table presents PSL activity as of January 5, 2026.

Table 43: PSL Activity


	January 5, 2026
In millions
Principal balance	$	15,720
ACL at acquisition	(229)
Non-credit discount	(672)
Purchase price	$	14,819

For additional information on our adoption of ASU 2025-08, see Note 1 Accounting Policies.

54 The PNC Financial Services Group, Inc. – Form 10-Q

N****OTE 3 I****NVESTMENT S****ECURITIES

The following table summarizes our available-for-sale and held-to-maturity portfolios by major security type:

Table 44: Investment Securities Summary (a) (b)


	June 30, 2026								December 31, 2025
In millions	Amortized Cost (c)		Unrealized				Fair Value		Amortized Cost (c)		Unrealized				Fair Value
Gains	Losses				Gains		Losses
Securities Available-for-Sale
U.S. Treasury and government agencies	$	28,804	$	72	$	(351)	$	28,525	$	29,022	$	188	$	(313)	$	28,897
Residential mortgage-backed
Agency	35,794		119		(2,025)		33,888		32,429		176		(1,942)		30,663
Non-agency	417		104		(4)		517		442		110		(4)		548
Commercial mortgage-backed
Agency	3,416		20		(75)		3,361		3,395		43		(66)		3,372
Non-agency	160		—		(2)		158		256		—		(4)		252
Asset-backed	2,521		31		(3)		2,549		2,247		50		—		2,297
Other	2,095		58		(51)		2,102		2,106		54		(54)		2,106
Total securities available-for-sale	$	73,207	$	404	$	(2,511)	$	71,100	$	69,897	$	621	$	(2,383)	$	68,135
Securities Held-to-Maturity
U.S. Treasury and government agencies	$	18,666	$	2	$	(385)	$	18,283	$	21,537	$	25	$	(318)	$	21,244
Residential mortgage-backed
Agency	51,294		155		(2,588)		48,861		42,599		279		(2,155)		40,723
Non-agency	213		—		(13)		200		222		—		(11)		211
Commercial mortgage-backed
Agency	4,545		8		(72)		4,481		1,091		16		(7)		1,100
Non-agency	150		3		—		153		328		3		(1)		330
Asset-backed	1,130		11		(7)		1,134		1,840		46		(6)		1,880
Other	2,408		29		(27)		2,410		2,488		34		(31)		2,491
Total securities held-to-maturity (d)	$	78,406	$	208	$	(3,092)	$	75,522	$	70,105	$	403	$	(2,529)	$	67,979

(a) At June 30, 2026, the accrued interest associated with our available-for-sale and held-to-maturity portfolios totaled $335 million and $246 million, respectively. The comparable amounts at December 31, 2025 were $348 million and $219 million, respectively. These amounts are included in Other assets on the Consolidated Balance Sheet.

(b) Credit ratings represent a primary credit quality indicator used to monitor and manage credit risk. Of our total securities portfolio, 97% were rated AAA/AA at both June 30, 2026 and December 31, 2025.

(c) Amortized cost is presented net of allowance of $61 million for securities available-for-sale, primarily related to non-agency commercial mortgage-backed securities, and $4 million for securities held-to-maturity at June 30, 2026. Comparable amounts at December 31, 2025 were $61 million and $5 million, respectively.

(d) Held-to-maturity securities transferred from available-for-sale are included in held-to-maturity at fair value at the time of the transfer. The amortized cost of held-to-maturity securities included net unrealized losses of $2.4 billion at June 30, 2026 related to securities transferred, which are offset in AOCI, net of tax. The comparable amount at December 31, 2025 was $2.7 billion.

The fair value of investment securities is impacted by interest rates, credit spreads, market volatility and liquidity conditions. Securities available-for-sale are carried at fair value with net unrealized gains and losses included in Total shareholders’ equity as AOCI, unless credit-related. Net unrealized gains and losses are determined by taking the difference between the fair value of a security and its amortized cost, net of any allowance. Securities held-to-maturity are carried at amortized cost, net of any allowance. Investment securities at June 30, 2026 included $918 million of net unsettled purchases that represent non-cash investing activity, and accordingly, are not reflected on the Consolidated Statement of Cash Flows. The comparable amount at June 30, 2025 was $577 million of net unsettled purchases.

We maintain the allowance for investment securities at levels that we believe to be appropriate as of the balance sheet date to absorb expected credit losses on our portfolio. At June 30, 2026, the allowance for investment securities was $65 million and primarily related to non-agency commercial mortgage-backed securities in the available-for-sale portfolio. The comparable amount at December 31, 2025 was $66 million. See Note 1 Accounting Policies in our 2025 Form 10-K for a discussion of the methodologies used to determine the allowance for investment securities.

At June 30, 2026, AOCI included pre-tax losses of $230 million from derivatives that hedged the purchase of investment securities classified as held-to-maturity. The losses will be accreted to interest income as an adjustment of yield on the securities.

Table 45 presents the gross unrealized losses and fair value of securities available-for-sale that do not have an associated allowance for investment securities at June 30, 2026 and December 31, 2025. These securities are segregated between investments that had been in a continuous unrealized loss position for less than twelve months and twelve months or more, based on the point in time that the fair

The PNC Financial Services Group, Inc. – Form 10-Q 55

value declined below the amortized cost basis. All securities included in the table have been evaluated to determine if a credit loss exists. As part of that assessment, as of June 30, 2026, we concluded that we do not intend to sell and believe we will not be required to sell these securities prior to recovery of the amortized cost basis.

Table 45: Gross Unrealized Loss and Fair Value of Securities Available-for-Sale Without an Allowance for Credit Losses


	Unrealized loss position less than 12 months				Unrealized loss position 12 months or more				Total
In millions	Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value
June 30, 2026

U.S. Treasury and government agencies	$	(34)	$	7,060	$	(317)	$	1,386	$	(351)	$	8,446
Residential mortgage-backed
Agency	(68)		7,664		(1,957)		15,093		(2,025)		22,757
Non-agency	—		—		(1)		30		(1)		30
Commercial mortgage-backed
Agency	(2)		407		(73)		1,515		(75)		1,922
Non-agency	—		—		(2)		71		(2)		71
Asset-backed	(3)		829		—		—		(3)		829
Other	(2)		173		(40)		1,099		(42)		1,272
Total securities available-for-sale	$	(109)	$	16,133	$	(2,390)	$	19,194	$	(2,499)	$	35,327
December 31, 2025
U.S. Treasury and government agencies	$	(1)	$	103	$	(312)	$	1,427	$	(313)	$	1,530
Residential mortgage-backed
Agency	(4)		541		(1,938)		17,383		(1,942)		17,924
Non-agency	—		—		(1)		24		(1)		24
Commercial mortgage-backed
Agency	—		—		(66)		1,572		(66)		1,572
Non-agency	—		—		(4)		167		(4)		167
Asset-backed	—		—		—		—		—		—
Other	—		—		(43)		1,518		(43)		1,518

Total securities available-for-sale	$	(5)	$	644	$	(2,364)	$	22,091	$	(2,369)	$	22,735

Information related to gross realized securities gains and losses from the sales of securities is set forth in the following table:

Table 46: Gains (Losses) on Sales of Securities Available-for-Sale


Six months ended June 30 In millions
	Gross Gains	Gross Losses				Net Gains (Losses)	Tax Expense (Benefit)
2026		$	31	$	(142)	(a)	$	(111)	$	(23)
2025		$	2	$	(4)		$	(2)	$	—

(a) Includes a securities loss of $139 million related to the sale of approximately $4.1 billion of available-for-sale securities as part of the repositioning of the investment securities portfolio.

56 The PNC Financial Services Group, Inc. – Form 10-Q

The following table presents, by remaining contractual maturity, the amortized cost, fair value and weighted-average yield of debt securities at June 30, 2026:

Table 47: Contractual Maturity of Debt Securities


June 30, 2026 Dollars in millions	1 Year or Less			After 1 Year through 5 Years			After 5 Years through 10 Years			After 10 Years			Total
Securities Available-for-Sale
U.S. Treasury and government agencies	$	497		$	24,352		$	1,665		$	2,290		$	28,804
Residential mortgage-backed
Agency	1			426			2,432			32,935			35,794
Non-agency	—			—			177			240			417
Commercial mortgage-backed
Agency	8			1,447			135			1,826			3,416
Non-agency	—			79			55			26			160
Asset-backed	5			1,399			295			822			2,521
Other	512			812			256			515			2,095
Total securities available-for-sale at amortized cost	$	1,023		$	28,515		$	5,015		$	38,654		$	73,207
Fair value	$	1,018		$	28,436		$	4,952		$	36,694		$	71,100
Weighted-average yield, GAAP basis (a)	3.48		%	4.07		%	3.64		%	3.93		%	3.96		%
Securities Held-to-Maturity
U.S. Treasury and government agencies	$	7,458		$	9,849		$	541		$	818		$	18,666
Residential mortgage-backed
Agency	—			14			3,767			47,513			51,294
Non-agency	—			—			—			213			213
Commercial mortgage-backed
Agency	—			3,516			491			538			4,545
Non-agency	—			—			—			150			150
Asset-backed	14			97			520			499			1,130
Other	114			635			250			1,409			2,408
Total securities held-to-maturity at amortized cost	$	7,586		$	14,111		$	5,569		$	51,140		$	78,406
Fair value	$	7,567		$	13,800		$	5,332		$	48,823		$	75,522
Weighted-average yield, GAAP basis (a)	1.30		%	2.40		%	2.50		%	3.50		%	3.02		%

(a)Weighted-average yields are based on amortized cost with effective yields weighted for the contractual maturity of each security. Actual maturities and yields may differ as certain securities may be prepaid.

The following table presents the fair value of securities that have been either pledged to or accepted from others to collateralize outstanding borrowings and unused borrowing capacity:

Table 48: Fair Value of Securities Pledged and Accepted as Collateral


In millions	June 30, 2026		December 31, 2025
Pledged to others	$	65,015	$	61,230
Accepted from others:
Permitted by contract or custom to sell or repledge	$	1,047	$	759
Permitted amount repledged to others	$	1,047	$	759

The securities pledged to others include positions held in our portfolio of investment securities, trading securities and securities accepted as collateral from others that we are permitted by contract or custom to sell or repledge. Such securities were pledged to the Federal Reserve and pledged to secure public and trust deposits, repurchase agreements and for other purposes. See Note 13 Financial Derivatives for information related to securities pledged and accepted as collateral for derivatives.

The PNC Financial Services Group, Inc. – Form 10-Q 57

N****OTE 4 L****OANS A****ND R****ELATED A****LLOWANCE F****OR C****REDIT L****OSSES

Loan Portfolio

Our loan portfolio consists of two portfolio segments – Commercial and Consumer. Each of these segments comprises multiple loan classes. Classes are characterized by similarities in risk attributes and the manner in which we monitor and assess credit risk.


Commercial						Consumer

• Commercial and industrial						• Residential real estate
• Commercial real estate						• Home equity
						• Automobile
						• Credit card
						• Other consumer

See Note 1 Accounting Policies for additional information on our loan classes. See Note 1 Accounting Policies in our 2025 Form 10-K for additional information on our loan related policies.

Credit Quality

We closely monitor economic conditions and loan performance trends to manage and evaluate our exposure to credit risk within the loan portfolio based on our defined loan classes. In doing so, we use several credit quality indicators, including, but not limited to, trends in delinquency rates, nonperforming status, analyses of PD and LGD ratings, updated credit scores and originated and updated LTV ratios.

We manage credit risk based on the risk profile of the borrower, repayment sources, underlying collateral and other support given current events, economic conditions and expectations. We refine our practices to address operating environment changes such as inflation levels, industry specific risks, interest rate levels, the level of consumer savings and deposit balances, and structural and secular changes such as those that arose from the pandemic. We offer loan modifications and collection programs to assist our customers and mitigate losses.

58 The PNC Financial Services Group, Inc. – Form 10-Q

Table 49 presents the composition and delinquency status of our loan portfolio at June 30, 2026 and December 31, 2025. Loan delinquencies include government insured or guaranteed loans and loans accounted for under the fair value option.

Table 49: Analysis of Loan Portfolio (a) (b)


	Accruing
Dollars in millions	Current or Less Than 30 Days Past Due			30-59 Days Past Due			60-89 Days Past Due			90 Days or More Past Due			Total Past Due (c)				Nonperforming Loans			Fair Value Option Nonaccrual Loans (d)			Total Loans (e)(f)
June 30, 2026
Commercial
Commercial and industrial	$	226,910		$	123		$	121		$	76		$	320			$	685		$	—		$	227,915
Commercial real estate	35,482			7			9			—			16				464			—			35,962
Total commercial	262,392			130			130			76			336				1,149			—			263,877
Consumer
Residential real estate	47,486			372			115			230			717			(c)	325			181			48,709
Home equity	25,698			65			26			—			91				456			35			26,280
Automobile	15,712			59			15			4			78				82			—			15,872
Credit card	7,179			37			28			56			121				11			—			7,311
Other consumer	5,807			32			24			37			93				4			—			5,904
Total consumer	101,882			565			208			327			1,100				878			216			104,076
Total	$	364,274		$	695		$	338		$	403		$	1,436			$	2,027		$	216		$	367,953
Percentage of total loans	99.00		%	0.19		%	0.09		%	0.11		%	0.39		%		0.55		%	0.06		%	100.00		%
December 31, 2025
Commercial
Commercial and industrial	$	201,772		$	182		$	103		$	57		$	342			$	784		$	—		$	202,898
Commercial real estate	28,879			14			98			—			112				574			—			29,565
Total commercial	230,651			196			201			57			454				1,358			—			232,463
Consumer
Residential real estate	42,687			243			101			209			553			(c)	320			200			43,760
Home equity	25,365			70			30			—			100				439			37			25,941
Automobile	16,411			74			18			5			97				83			—			16,591
Credit card	6,859			45			32			65			142				13			—			7,014
Other consumer	5,610			32			21			44			97				5			—			5,712
Total consumer	96,932			464			202			323			989				860			237			99,018
Total	$	327,583		$	660		$	403		$	380		$	1,443			$	2,218		$	237		$	331,481
Percentage of total loans	98.82		%	0.20		%	0.12		%	0.11		%	0.44		%		0.67		%	0.07		%	100.00		%

(a)Amounts in table represent loans held for investment and do not include any associated ALLL.

(b)The accrued interest associated with our loan portfolio totaled $1.5 billion and $1.3 billion at June 30, 2026 and December 31, 2025, respectively. These amounts are included in Other assets on the Consolidated Balance Sheet.

(c)Past due loan amounts include government insured or guaranteed residential real estate loans totaling $0.3 billion at both June 30, 2026 and December 31, 2025.

(d)Consumer loans accounted for under the fair value option for which we do not expect to collect substantially all principal and interest are subject to nonaccrual accounting and classification upon meeting any of our nonaccrual policy criteria. Given that these loans are not accounted for at amortized cost, they have been excluded from the nonperforming loan population.

(e)Includes unearned income, unamortized deferred fees and costs on originated loans and premiums or discounts on purchased loans totaling $1.7 billion and $1.1 billion at June 30, 2026 and December 31, 2025, respectively.

(f)Collateral dependent loans totaled $1.3 billion and $1.5 billion at June 30, 2026 and December 31, 2025, respectively.

At June 30, 2026, we pledged unpaid principal balances in the amounts of $68.7 billion of commercial and consumer loans to the FRB and $86.6 billion of secured real estate and other loans to the FHLB as collateral for the ability to borrow, if necessary. The comparable amounts at December 31, 2025 were $55.0 billion and $80.6 billion, respectively.

Nonperforming Assets

Nonperforming assets include nonperforming loans and leases, OREO, foreclosed and other assets. Nonperforming loans are those 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 generally not recognized on these loans. Loans accounted for under the fair value option are reported as performing loans; however, when nonaccrual criteria is met, interest income is not recognized on these loans. Additionally, certain government insured or guaranteed loans for which we expect to collect substantially all principal and interest are not reported as nonperforming loans and continue to accrue interest. See Note 1 Accounting Policies in our 2025 Form 10-K for additional information on our nonperforming loan and lease policies.

The PNC Financial Services Group, Inc. – Form 10-Q 59

The following table presents our nonperforming assets as of June 30, 2026 and December 31, 2025:

Table 50: Nonperforming Assets


Dollars in millions	June 30, 2026			December 31, 2025
Nonperforming loans
Commercial	$	1,149		$	1,358
Consumer (a)	878			860
Total nonperforming loans (b)	2,027			2,218
OREO, foreclosed and other assets	123			143
Total nonperforming assets	$	2,150		$	2,361
Nonperforming loans to total loans	0.55		%	0.67		%
Nonperforming assets to total loans, OREO, foreclosed and other assets	0.58		%	0.71		%
Nonperforming assets to total assets	0.35		%	0.41		%

(a)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.

(b)Nonperforming loans for which there is no related ALLL totaled $0.7 billion and $0.6 billion at June 30, 2026 and December 31, 2025, respectively. This primarily includes loans with a fair value of collateral that exceeds the amortized cost basis.

Additional Credit Quality Indicators by Loan Class

Commercial Loan Classes

See Note 3 Loans and Related Allowance for Credit Losses in our 2025 Form 10-K for additional information related to these loan classes, including discussion around the credit quality indicators that we use to monitor and manage the credit risk associated with each loan class.

60 The PNC Financial Services Group, Inc. – Form 10-Q

The following table presents credit quality indicators for our commercial loan classes:

Table 51: Commercial Credit Quality Indicators (a)


	Term Loans by Origination Year
June 30, 2026 In millions	2026			2025		2024		2023		2022		Prior		Revolving Loans		Revolving Loans Converted to Term		Total
Commercial and industrial
Pass Rated	$	23,536		$	31,025	$	14,272	$	9,541	$	11,991	$	15,825	$	113,235	$	79	$	219,504
Criticized	112			577		911		564		890		675		4,637		45		8,411
Total commercial and industrial loans	23,648			31,602		15,183		10,105		12,881		16,500		117,872		124		227,915
Gross charge-offs (b)	8		(c)	13		16		20		38		21		153		1		270
Commercial real estate
Pass Rated	4,939			4,555		2,663		2,707		5,355		9,184		762		—		30,165
Criticized	—			207		601		1,380		1,671		1,922		16		—		5,797
Total commercial real estate loans	4,939			4,762		3,264		4,087		7,026		11,106		778		—		35,962
Gross charge-offs (b)	—			9		—		15		—		16		3		—		43
Total commercial loans	$	28,587		$	36,364	$	18,447	$	14,192	$	19,907	$	27,606	$	118,650	$	124	$	263,877
Total commercial gross charge-offs (d)	$	8		$	22	$	16	$	35	$	38	$	37	$	156	$	1	$	313


	Term Loans by Origination Year
December 31, 2025 In millions	2025			2024		2023		2022		2021		Prior		Revolving Loans		Revolving Loans Converted to Term		Total
Commercial and industrial
Pass Rated	$	35,176		$	16,478	$	10,180	$	13,815	$	4,139	$	12,757	$	101,222	$	125	$	193,892
Criticized	559			896		574		1,181		333		510		4,838		115		9,006
Total commercial and industrial loans	35,735			17,374		10,754		14,996		4,472		13,267		106,060		240		202,898
Gross charge-offs (b)	45		(c)	48		82		28		11		18		131		31		394
Commercial real estate
Pass Rated	3,169			2,395		3,080		5,215		1,324		7,686		610		—		23,479
Criticized	221			571		1,467		1,637		287		1,899		4		—		6,086
Total commercial real estate loans	3,390			2,966		4,547		6,852		1,611		9,585		614		—		29,565
Gross charge-offs (b)	5			1		1		—		7		100		—		2		116
Total commercial loans	$	39,125		$	20,340	$	15,301	$	21,848	$	6,083	$	22,852	$	106,674	$	240	$	232,463
Total commercial gross charge-offs	$	50		$	49	$	83	$	28	$	18	$	118	$	131	$	33	$	510

(a)Loans in our commercial portfolio are classified as Pass Rated or Criticized based on the regulatory definitions, which are driven by the PD and LGD ratings that we assign. The Criticized classification includes loans that were rated special mention, substandard or doubtful as of June 30, 2026 and December 31, 2025.

(b)Gross charge-offs are presented on a year-to-date basis, as of the period end date.

(c)Includes charge-offs of deposit overdrafts.

(d)Acquired commercial gross charge-offs are excluded from the balance above and 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.

Consumer Loan Classes

The PNC Financial Services Group, Inc. – Form 10-Q 61

Residential Real Estate and Home Equity

The following table presents credit quality indicators for our residential real estate and home equity loan classes:

Table 52: Credit Quality Indicators for Residential Real Estate and Home Equity Loan Classes


	Term Loans by Origination Year
June 30, 2026 In millions	2026		2025		2024		2023		2022		Prior		Revolving Loans		Revolving Loans Converted to Term		Total
Residential real estate
Current estimated LTV ratios
Greater than 100%	$	3	$	42	$	64	$	61	$	64	$	133	$	—	$	—	$	367
Greater than or equal to 80% to 100%	345		573		313		337		835		653		—		—		3,056
Less than 80%	1,012		1,970		1,618		3,190		8,843		28,022		—		—		44,655
No LTV available	1		—		—		—		—		10		—		—		11
Government insured or guaranteed loans	—		2		7		30		31		550		—		—		620
Total residential real estate loans	$	1,361	$	2,587	$	2,002	$	3,618	$	9,773	$	29,368	$	—	$	—	$	48,709
Updated FICO scores
Greater than or equal to 780	$	782	$	1,784	$	1,391	$	2,537	$	7,774	$	21,238	$	—	$	—	$	35,506
720 to 779	465		553		403		573		1,296		4,320		—		—		7,610
660 to 719	92		168		139		230		434		1,709		—		—		2,772
Less than 660	9		43		37		128		166		986		—		—		1,369
No FICO score available (a)	13		37		25		120		72		565		—		—		832
Government insured or guaranteed loans	—		2		7		30		31		550		—		—		620
Total residential real estate loans	$	1,361	$	2,587	$	2,002	$	3,618	$	9,773	$	29,368	$	—	$	—	$	48,709
Gross charge-offs (b) (c)	$	—	$	—	$	—	$	—	$	—	$	1	$	—	$	—	$	1
Home equity (d)
Current estimated LTV ratios
Greater than 100%	$	1	$	2	$	1	$	1	$	1	$	22	$	491	$	423	$	942
Greater than or equal to 80% to 100%	10		7		5		3		3		47		1,566		1,580		3,221
Less than 80%	48		22		17		20		15		3,584		7,911		10,477		22,094
No LTV available	13		—		—		—		—		1		6		3		23
Total home equity loans	$	72	$	31	$	23	$	24	$	19	$	3,654	$	9,974	$	12,483	$	26,280
Updated FICO scores
Greater than or equal to 780	$	16	$	17	$	9	$	8	$	9	$	2,375	$	5,960	$	5,916	$	14,310
720 to 779	8		7		6		6		4		687		2,600		2,974		6,292
660 to 719	4		5		6		5		3		341		1,236		2,052		3,652
Less than 660	—		2		2		5		3		249		173		1,511		1,945
No FICO score available (a)	44		—		—		—		—		2		5		30		81
Total home equity loans	$	72	$	31	$	23	$	24	$	19	$	3,654	$	9,974	$	12,483	$	26,280
Gross charge-offs (b) (c)	$	—	$	—	$	—	$	—	$	—	$	—	$	7	$	13	$	20

62 The PNC Financial Services Group, Inc. – Form 10-Q


(Continued from previous page)	Term Loans by Origination Year
December 31, 2025 In millions	2025		2024		2023		2022		2021		Prior		Revolving Loans		Revolving Loans Converted to Term		Total
Residential real estate
Current estimated LTV ratios
Greater than 100%	$	7	$	24	$	74	$	70	$	55	$	51	$	—	$	—	$	281
Greater than or equal to 80% to 100%	534		290		342		707		447		223		—		—		2,543
Less than 80%	1,594		1,466		3,332		8,003		13,210		12,694		—		—		40,299
No LTV available	—		—		—		—		9		2		—		—		11
Government insured or guaranteed loans	—		6		26		27		20		547		—		—		626
Total residential real estate loans	$	2,135	$	1,786	$	3,774	$	8,807	$	13,741	$	13,517	$	—	$	—	$	43,760
Updated FICO scores
Greater than or equal to 780	$	1,337	$	1,325	$	2,748	$	7,065	$	11,095	$	8,644	$	—	$	—	$	32,214
720 to 779	661		354		568		1,206		1,837		2,225		—		—		6,851
660 to 719	117		86		192		394		543		978		—		—		2,310
Less than 660	19		15		134		109		181		751		—		—		1,209
No FICO score available (a)	1		—		106		6		65		372		—		—		550
Government insured or guaranteed loans	—		6		26		27		20		547		—		—		626
Total residential real estate loans	$	2,135	$	1,786	$	3,774	$	8,807	$	13,741	$	13,517	$	—	$	—	$	43,760
Gross charge-offs (b)	$	—	$	1	$	1	$	3	$	2	$	1	$	—	$	—	$	8
Home equity (e)
Current estimated LTV ratios
Greater than 100%	$	—	$	—	$	—	$	—	$	1	$	24	$	422	$	422	$	869
Greater than or equal to 80% to 100%	—		—		—		—		5		45		1,342		1,562		2,954
Less than 80%	—		—		—		—		125		3,772		7,572		10,649		22,118
Total home equity loans	$	—	$	—	$	—	$	—	$	131	$	3,841	$	9,336	$	12,633	$	25,941
Updated FICO scores
Greater than or equal to 780	$	—	$	—	$	—	$	—	$	86	$	2,465	$	5,423	$	5,967	$	13,941
720 to 779	—		—		—		—		29		737		2,504		3,063		6,333
660 to 719	—		—		—		—		11		372		1,200		2,077		3,660
Less than 660	—		—		—		—		5		265		207		1,496		1,973
No FICO score available (a)	—		—		—		—		—		2		2		30		34
Total home equity loans	$	—	$	—	$	—	$	—	$	131	$	3,841	$	9,336	$	12,633	$	25,941
Gross charge-offs (b)	$	—	$	—	$	—	$	—	$	—	$	—	$	13	$	22	$	35

(a)Loans where FICO scores are not available or required generally refers to accounts for which we cannot obtain an updated FICO score (e.g., recent profile changes, bankruptcy event, deceased borrower) and/or loans titled with a business name. Management proactively assesses the risk and size of this loan category and, when necessary, takes actions to mitigate the credit risk.

(b)Gross charge-offs are presented on a year-to-date basis, as of the period end date.

(c)Acquired consumer gross charge-offs are excluded from the balance above and 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)Amounts as of June 30, 2026 include home equity installment loans acquired from FirstBank, which are reflected in the table based on the date the loan was originated.

(e)New originations consisted only of revolving home equity lines of credit for vintage years 2022 through 2025.

The PNC Financial Services Group, Inc. – Form 10-Q 63

Automobile, Credit Card and Other Consumer

The following table presents credit quality indicators for our automobile, credit card and other consumer loan classes:

Table 53: Credit Quality Indicators for Automobile, Credit Card and Other Consumer Loan Classes


	Term Loans by Origination Year
June 30, 2026 In millions	2026			2025		2024		2023		2022		Prior		Revolving Loans		Revolving Loans Converted to Term		Total
Automobile
Updated FICO scores
Greater than or equal to 780	$	1,822		$	3,255	$	1,581	$	755	$	423	$	256	$	—	$	—	$	8,092
720 to 779	904			1,930		892		437		218		121		—		—		4,502
660 to 719	316			834		504		284		135		77		—		—		2,150
Less than 660	50			306		314		239		127		92		—		—		1,128

Total automobile loans	$	3,092		$	6,325	$	3,291	$	1,715	$	903	$	546	$	—	$	—	$	15,872
Gross charge-offs (a)	$	—		$	18	$	17	$	14	$	6	$	5	$	—	$	—	$	60
Credit card
Updated FICO scores
Greater than or equal to 780	$	—		$	—	$	—	$	—	$	—	$	—	$	2,301	$	1	$	2,302
720 to 779	—			—		—		—		—		—		1,990		6		1,996
660 to 719	—			—		—		—		—		—		1,911		18		1,929
Less than 660	—			—		—		—		—		—		918		50		968
No FICO score available or required (b)	—			—		—		—		—		—		114		2		116
Total credit card loans	$	—		$	—	$	—	$	—	$	—	$	—	$	7,234	$	77	$	7,311
Gross charge-offs (a) (c)	$	—		$	—	$	—	$	—	$	—	$	—	$	133	$	19	$	152
Other consumer
Updated FICO scores
Greater than or equal to 780	$	135		$	248	$	125	$	80	$	74	$	280	$	34	$	—	$	976
720 to 779	152			250		124		62		41		97		61		—		787
660 to 719	120			171		98		43		24		43		67		—		566
Less than 660	19			54		40		20		12		20		37		—		202
No FICO score available or required (b)	2			5		5		2		1		1		—		—		16
Total loans using FICO credit metric	428			728		392		207		152		441		199		—		2,547
Other internal credit metrics	1			—		2		29		7		689		2,620		9		3,357
Total other consumer loans	$	429		$	728	$	394	$	236	$	159	$	1,130	$	2,819	$	9	$	5,904
Gross charge-offs (a) (c)	$	43	(d)	$	12	$	12	$	6	$	3	$	6	$	5	$	—	$	87

64 The PNC Financial Services Group, Inc. – Form 10-Q


(Continued from previous page)	Term Loans by Origination Year
December 31, 2025 In millions	2025			2024		2023		2022		2021		Prior		Revolving Loans		Revolving Loans Converted to Term		Total
Automobile
Updated FICO Scores
Greater than or equal to 780	$	4,241		$	1,991	$	1,022	$	608	$	387	$	85	$	—	$	—	$	8,334
720 to 779	2,394			1,216		609		322		178		52		—		—		4,771
660 to 719	883			668		387		199		104		39		—		—		2,280
Less than 660	236			352		292		167		100		59		—		—		1,206
Total automobile loans	$	7,754		$	4,227	$	2,310	$	1,296	$	769	$	235	$	—	$	—	$	16,591
Gross charge-offs (a)	$	9		$	38	$	39	$	20	$	11	$	13	$	—	$	—	$	130
Credit card
Updated FICO scores
Greater than or equal to 780	$	—		$	—	$	—	$	—	$	—	$	—	$	2,199	$	1	$	2,200
720 to 779	—			—		—		—		—		—		1,903		6		1,909
660 to 719	—			—		—		—		—		—		1,813		17		1,830
Less than 660	—			—		—		—		—		—		922		55		977
No FICO score available or required (b)	—			—		—		—		—		—		96		2		98
Total credit card loans	$	—		$	—	$	—	$	—	$	—	$	—	$	6,933	$	81	$	7,014
Gross charge-offs (a)	$	—		$	—	$	—	$	—	$	—	$	—	$	280	$	40	$	320
Other consumer
Updated FICO scores
Greater than or equal to 780	$	301		$	168	$	108	$	93	$	39	$	282	$	34	$	—	$	1,025
720 to 779	324			175		90		58		20		98		64		—		829
660 to 719	230			133		62		38		10		44		70		—		587
Less than 660	48			45		27		20		6		22		37		—		205
No FICO score available or required (b)	5			5		3		1		—		—		—		—		14
Total loans using FICO credit metric	908			526		290		210		75		446		205		—		2,660
Other internal credit metrics	6			5		18		7		10		703		2,296		7		3,052
Total other consumer loans	$	914		$	531	$	308	$	217	$	85	$	1,149	$	2,501	$	7	$	5,712
Gross charge-offs (a)	$	81	(d)	$	24	$	24	$	14	$	5	$	14	$	10	$	1	$	173

(a)Gross charge-offs are presented on a year-to-date basis, as of the period end date.

(b)Loans where FICO scores are not available or required generally refers to new accounts issued to borrowers with limited credit history, accounts for which we cannot obtain an updated FICO score (e.g., recent profile changes), cards issued with a business name and/or cards secured by collateral. Management proactively assesses the risk and size of this loan category and, when necessary, takes actions to mitigate the credit risk.

(d)Includes charge-offs of deposit overdrafts.

The PNC Financial Services Group, Inc. – Form 10-Q 65

Loan Modifications to Borrowers Experiencing Financial Difficulty

FDMs result from our loss mitigation activities and include loan modifications that may result in interest rate reductions, term extensions, payment delays, repayment plans or combinations thereof. See Note 1 Accounting Policies in our 2025 Form 10-K for additional information on FDMs.

The following table presents the amortized cost basis, as of the period end date, of commercial FDMs granted during the three and six months ended June 30, 2026 and 2025:

Table 54: Commercial FDMs (a) (b)


Three months ended June 30 Dollars in millions	Term Extension		Payment Delay		Interest Rate Reduction and Term Extension		Payment Delay and Term Extension		Interest Rate Reduction, Payment Delay and Term Extension		Other		Total		% of Loan Class
2026
Commercial and industrial	$	356	$	116	$	1	$	1	$	—	$	96	$	570	0.25	%
Commercial real estate	729		32		—		—		—		—		761		2.12	%

Total commercial	$	1,085	$	148	$	1	$	1	$	—	$	96	$	1,331	0.50	%
2025
Commercial and industrial	$	550	$	37	$	1	$	17	$	—	$	7	$	612	0.32	%
Commercial real estate	268		35		—		—		—		—		303		0.97	%
Total commercial	$	818	$	72	$	1	$	17	$	—	$	7	$	915	0.40	%


Six months ended June 30 Dollars in millions	Term Extension		Payment Delay		Interest Rate Reduction and Term Extension		Payment Delay and Term Extension		Interest Rate Reduction, Payment Delay and Term Extension		Other		Total		% of Loan Class
2026
Commercial and industrial	$	579	$	132	$	2	$	12	$	—	$	96	$	821	0.36	%
Commercial real estate	955		50		—		44		—		—		1,049		2.92	%

Total commercial	$	1,534	$	182	$	2	$	56	$	—	$	96	$	1,870	0.71	%
2025
Commercial and industrial	$	788	$	31	$	2	$	24	$	14	$	54	$	913	0.48	%
Commercial real estate	550		35		—		—		—		14		599		1.92	%
Total commercial	$	1,338	$	66	$	2	$	24	$	14	$	68	$	1,512	0.67	%

(a)The unfunded lending related commitments on FDMs granted during the six months ended June 30, 2026 and 2025 were $0.6 billion and $0.4 billion, respectively.

(b)Excludes the amortized cost basis of modified loans that were paid off, charged off or otherwise liquidated as of the period end date.

66 The PNC Financial Services Group, Inc. – Form 10-Q

Table 55 presents the weighted average financial effect of commercial FDMs granted during the three and six months ended June 30, 2026 and 2025:

Table 55: Financial Effect of Commercial FDMs (a)


Three months ended June 30 Dollars in millions	2026		2025
	Amortized cost basis (b)	Financial effect	Amortized cost basis (b)	Financial effect
Weighted-average term extension (months)
Commercial and industrial	$358	16	$568	11
Commercial real estate	$729	14	$268	16
Interest rate reduction
Commercial and industrial	$1	4.61%	$1	5.50%

Weighted-average payment delay (months)
Commercial and industrial	$117	4	$54	5
Commercial real estate	$32	6	$35	6


Six months ended June 30 Dollars in millions	2026		2025
	Amortized cost basis (b)	Financial effect	Amortized cost basis (b)	Financial effect
Weighted-average term extension (months)
Commercial and industrial	$593	15	$828	17
Commercial real estate	$999	15	$550	16
Interest rate reduction
Commercial and industrial	$2	4.07%	$16	1.17%

Weighted-average payment delay (months)
Commercial and industrial	$144	8	$69	12
Commercial real estate	$94	7	$35	6

(a)Excludes the financial effects of modifications for loans that were paid off, charged off or otherwise liquidated as of the period end date.

(b)The amortized cost basis presented in Table 55 includes combination modification categories in addition to the standalone modification categories presented in Table 54. Primarily due to this reason, the amortized cost basis presented in Table 55 may not agree to the amortized cost basis presented alongside the standalone modification categories in Table 54. Amortized cost basis is as of the period end date.

After we modify a loan, we continue to track its performance under its most recent modified terms. The following table presents the performance, as of the period end date, of commercial FDMs granted during the twelve months preceding June 30, 2026 and 2025:

Table 56: Delinquency Status of Commercial FDMs (a) (b)


Twelve months ended June 30 Dollars in millions	Current or Less Than 30 Days Past Due		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Nonperforming Loans		Total
2026
Commercial
Commercial and industrial	$	1,703	$	4	$	—	$	—	$	242	$	1,949
Commercial real estate	1,383		—		—		—		191		1,574

Total commercial	$	3,086	$	4	$	—	$	—	$	433	$	3,523
2025
Commercial
Commercial and industrial	$	1,118	$	9	$	4	$	—	$	106	$	1,237
Commercial real estate	711		—		—		—		301		1,012
Total commercial	$	1,829	$	9	$	4	$	—	$	407	$	2,249

(a)Represents amortized cost basis.

(b)Loans in our Payment Delay category are reported as past due in accordance with their contractual terms. Once contractually modified, these loans are reported as past due in accordance with their restructured terms.

We generally consider FDMs to have subsequently defaulted when they become 60 days past due after the most recent date the loan was modified. Commercial loans that were both (i) classified as FDMs, and (ii) subsequently defaulted during the three and six months ended June 30, 2026 were $47 million and $70 million, respectively. Comparable amounts at June 30, 2025 were $61 million and $105 million, respectively.

The PNC Financial Services Group, Inc. – Form 10-Q 67

The following table presents information about our consumer FDMs:

Table 57: Consumer FDMs (a)(b)


	Three months ended June 30						Six months ended June 30
Dollars in millions	2026			2025			2026			2025
Modifications by type (c)
Payment delay	$	59		$	65		$	93		$	91
Repayment plan	15			18			29			35
Other (d)	12			12			23			22
Total consumer	$	86		$	95		$	145		$	148
Percentage of portfolio segment	0.08		%	0.10		%	0.14		%	0.15		%
Financial effects (c) (e)
Weighted-average payment delay (months)	8			6			9			6


	Twelve months ended June 30
Dollars in millions	2026		2025
Delinquency status (f)
Current or less than 30 days past due	$	57	$	56
30-59 days past due	4		4
60-89 days past due	3		4
90 days or more past due	6		7
Nonperforming loans	155		167
Total	$	225	$	238

(a)Represents amortized cost basis.

(b)The unfunded lending related commitments on consumer FDMs granted were immaterial during the three and six months ended June 30, 2026 and 2025.

(c)Excludes the amortized cost basis and financial effect of modified loans that were paid off, charged-off or otherwise liquidated as of the period end date.

(d)Represents all other modifications and includes trial modifications and loans where we have received notification that a borrower has filed for Chapter 7 bankruptcy relief, but specific instructions as to the terms of the relief have not been formally ruled upon by the court.

(e)Repayment plans are excluded from financial effects because of varying terms offered in these plans. Credit card and unsecured lines of credit programs both offer short-term and fully-amortized repayment plans, impacting terms and interest rates. Home equity programs offer a fixed payment plan, establishing a modified monthly payment based primarily on the borrower’s financial situation and the current market environment.

(f)Loans in our Payment Delay category are reported as past due in accordance with their contractual terms. Once contractually modified, these loans are reported as past due in accordance with their restructured terms.

We generally consider FDMs to have subsequently defaulted when they become 60 days past due after the most recent date the loan

was modified. Consumer loans that were both (i) classified as FDMs, and (ii) subsequently defaulted during the three and six months ended June 30, 2026 were $31 million and $51 million, respectively. Comparable amounts at June 30, 2025 were $21 million and $48 million, respectively.

68 The PNC Financial Services Group, Inc. – Form 10-Q

Allowance for Credit Losses

We maintain the ACL related to loans at levels that we believe to be appropriate to absorb expected credit losses in the portfolios as of the balance sheet date. See Note 1 Accounting Policies in our 2025 Form 10-K for a discussion of the methodologies used to determine this allowance. A rollforward of the ACL related to loans follows:

Table 58: Rollforward of Allowance for Credit Losses


	Three months ended June 30												Six months ended June 30
	2026						2025						2026						2025
In millions	Commercial		Consumer		Total		Commercial		Consumer		Total		Commercial		Consumer		Total		Commercial		Consumer		Total
Allowance for loan and lease losses
Beginning balance	$	3,269	$	1,394	$	4,663	$	3,205	$	1,339	$	4,544	$	3,089	$	1,321	$	4,410	$	3,148	$	1,338	$	4,486
Acquisition PCD reserves	—		—		—		—		—		—		53		40		93		—		—		—
Acquisition PSL reserves	—		—		—		—		—		—		184		45		229		—		—		—
Beginning balance, adjusted	3,269		1,394		4,663		3,205		1,339		4,544		3,326		1,406		4,732		3,148		1,338		4,486
Charge-offs	(165)		(159)		(324)		(163)		(161)		(324)		(313)		(320)		(633)		(294)		(342)		(636)
Recoveries	36		62		98		61		65		126		74		125		199		108		125		233
Acquired loan charge-offs (a)	—		—		—		—		—		—		(10)		(35)		(45)		—		—		—
Net (charge-offs)	(129)		(97)		(226)		(102)		(96)		(198)		(249)		(230)		(479)		(186)		(217)		(403)
Provision for credit losses	114		99		213		121		50		171		181		220		401		259		172		431
Other	—		2		2		6		—		6		(4)		2		(2)		9		—		9
Ending balance	$	3,254	$	1,398	$	4,652	$	3,230	$	1,293	$	4,523	$	3,254	$	1,398	$	4,652	$	3,230	$	1,293	$	4,523
Allowance for unfunded lending related commitments (b)
Beginning balance	$	693	$	139	$	832	$	528	$	146	$	674	$	681	$	137	$	818	$	580	$	139	$	719
Provision for (recapture of) credit losses	(23)		3		(20)		87		(3)		84		(11)		5		(6)		34		4		38
Other	—		(3)		(3)		1		—		1		—		(3)		(3)		2		—		2
Ending balance	$	670	$	139	$	809	$	616	$	143	$	759	$	670	$	139	$	809	$	616	$	143	$	759
Allowance for credit losses at June 30 (c)	$	3,924	$	1,537	$	5,461	$	3,846	$	1,436	$	5,282	$	3,924	$	1,537	$	5,461	$	3,846	$	1,436	$	5,282

(a)Amounts for the six months ended June 30, 2026 include $45 million attributable to FirstBank, which 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.

(b)See Note 9 Commitments for additional information about the underlying commitments related to this allowance.

(c)Represents the ALLL plus allowance for unfunded lending related commitments and excludes allowances for investment securities and other financial assets, which together totaled $99 million and $88 million at June 30, 2026 and 2025, respectively.

The ACL related to loans totaled $5.5 billion at June 30, 2026 and $5.2 billion at December 31, 2025. The increase was primarily driven by portfolio activity, including the addition of FirstBank loans.

N****OTE 5 L****OAN S****ALE AND S****ERVICING A****CTIVITIES AND V****ARIABLE I****NTEREST E****NTITIES

Loan Sale and Servicing Activities

As more fully described in Note 4 Loan Sale and Servicing Activities and Variable Interest Entities in our 2025 Form 10-K, we have transferred residential and commercial mortgage loans in securitization or sales transactions in which we have continuing involvement. Our continuing involvement in the FNMA, FHLMC and GNMA securitizations, non-agency securitizations, and loan sale transactions generally consists of servicing, repurchasing previously transferred loans or loss share arrangements under certain conditions, and, in limited circumstances, holding of mortgage-backed securities issued by the securitization SPEs.

We earn servicing and other ancillary fees for our role as servicer and, depending on the contractual terms of the servicing arrangement, we can be terminated as servicer with or without cause. At the consummation date of each type of loan transfer where we retain the servicing, we recognize a servicing right at fair value. See Note 6 Goodwill and Mortgage Servicing Rights and Note 12 Fair Value for further discussion of our servicing rights.

The PNC Financial Services Group, Inc. – Form 10-Q 69

The following table provides our loan sale and servicing activities.

Table 59: Loan Sale and Servicing Activities


In millions	Residential Mortgages		Commercial Mortgages
Three months ended June 30, 2026
Sales of loans and related securitization activity (a)	$	812		$	1,577
Repurchases of previously transferred loans (b)	$	22		$	3
Servicing fees (c)	$	145		$	51
Servicing advances recovered/(funded), net	$	18		$	(48)
Cash flows on mortgage-backed securities held (d)	$	729		$	6
Three months ended June 30, 2025
Sales of loans and related securitization activity (a)	$	745		$	1,094
Repurchases of previously transferred loans (b)	$	29		$	—
Servicing fees (c)	$	129		$	54
Servicing advances recovered/(funded), net	$	23		$	(65)
Cash flows on mortgage-backed securities held (d)	$	621		$	17
Six months ended June 30, 2026
Sales of loans and related securitization activity (a)	$	1,631		$	3,093
Repurchases of previously transferred loans (b)	$	62		$	80
Servicing fees (c)	$	284		$	97
Servicing advances recovered/(funded), net	$	24		$	(47)
Cash flows on mortgage-backed securities held (d)	$	1,354		$	10
Six months ended June 30, 2025
Sales of loans and related securitization activity (a)	$	1,449		$	1,587
Repurchases of previously transferred loans (b)	$	64		$	—
Servicing fees (c)	$	259		$	104
Servicing advances recovered/(funded), net	$	42		$	(54)
Cash flows on mortgage-backed securities held (d)	$	1,192		$	43

(a)Gains/losses recognized on sales of loans were insignificant for the periods presented.

(b)Represents the outstanding principal balance of repurchased loans and includes both residential and commercial mortgage government insured or guaranteed loans eligible for repurchase through the exercise of our ROAP option, as well as residential mortgage loans repurchased due to alleged breaches of origination covenants or representations and warranties made to purchasers.

(c)Includes contractually specified servicing fees, late charges and ancillary fees.

(d)Represents cash flows on securities where we transferred to and/or service loans for a securitization SPE and we hold securities issued by that SPE. The carrying values of such securities held in residential mortgage-backed securities were $20.6 billion at June 30, 2026 and $17.2 billion at both December 31, 2025 and June 30, 2025, respectively. The carrying values of commercial mortgage-backed securities were $0.4 billion, $0.4 billion and $0.5 billion at June 30, 2026, December 31, 2025 and June 30, 2025, respectively.

70 The PNC Financial Services Group, Inc. – Form 10-Q

Table 60 presents information about the principal balances of transferred loans that we service and are not recorded on our Consolidated Balance Sheet.

Table 60: Principal Balance, Delinquent Loans and Net Charge-offs Related to Serviced Loans For Others (a)


In millions	Residential Mortgages		Commercial Mortgages
June 30, 2026
Total principal balance	$	36,104		$	55,628
Delinquent loans (b)	$	253		$	207
December 31, 2025
Total principal balance	$	36,088		$	55,145
Delinquent loans (b)	$	274		$	216
Three months ended June 30, 2026
Net charge-offs (c)	$	1		$	11
Three months ended June 30, 2025
Net charge-offs (c)	$	—		$	(1)
Six months ended June 30, 2026
Net charge-offs (c)	$	2		$	42
Six months ended June 30, 2025
Net charge-offs (c)	$	1		$	9

(a)Represents information at the securitization level in which we have sold loans and we are the servicer for the securitization.

(b)Serviced delinquent loans are 90 days or more past due or are in process of foreclosure.

(c)Net charge-offs for Residential mortgages represent credit losses less recoveries distributed and as reported to investors during the period. Net charge-offs for Commercial mortgages represent credit losses less recoveries distributed and as reported by the trustee for commercial mortgage-backed securitizations. Realized losses for agency securitizations are not reflected as we do not manage the underlying real estate upon foreclosure and, as such, do not have access to loss information.

Variable Interest Entities (VIEs)

As discussed in Note 4 Loan Sale and Servicing Activities and Variable Interest Entities included in our 2025 Form 10-K, we are involved with various entities in the normal course of business that are deemed to be VIEs.

The following table provides a summary of non-consolidated VIEs with which we have significant continuing involvement but are not the primary beneficiary. We have excluded certain transactions with non-consolidated VIEs from the balances presented in Table 61 where we have determined that our continuing involvement is insignificant. We do not consider our continuing involvement to be significant when it relates to a VIE where we only invest in securities issued by the VIE and were not involved in the design of the VIE or where no transfers have occurred between us and the VIE. In addition, where we only have lending arrangements in the normal course of business with entities that could be VIEs, we have excluded these transactions with non-consolidated entities from the balances presented in Table 61. These loans are included as part of the asset quality disclosures that we make in Note 4 Loans and Related Allowance for Credit Losses.

Table 61: Non-Consolidated VIEs


In millions	PNC Risk of Loss (a)		Carrying Value of Assets			Carrying Value of Liabilities
June 30, 2026
Mortgage-backed securitizations (b)	$	21,642	$	21,642	(c)	$	—
Tax credit investments and other	6,852		6,577		(d)(e)	3,093		(f)(g)
Total	$	28,494	$	28,219		$	3,093
December 31, 2025
Mortgage-backed securitizations (b)	$	17,956	$	17,956	(c)	$	—
Tax credit investments and other	6,420		6,082		(d)(e)	2,961		(f)(g)
Total	$	24,376	$	24,038		$	2,961

(a)Represents loans, investments and other assets related to non-consolidated VIEs, net of collateral (if applicable). The risk of loss excludes any potential tax recapture associated with tax credit investments.

(b)Amounts reflect involvement with securitization SPEs where we transferred to and/or service loans for an SPE and we hold securities issued by that SPE. Values disclosed in the PNC Risk of Loss column represent our maximum exposure to loss for those securities’ holdings.

(c)Included in Investment securities, Mortgage servicing rights and Other assets on our Consolidated Balance Sheet.

(d)Included in Investment securities, Loans, Equity investments and Other assets on our Consolidated Balance Sheet.

(e)Amount includes $4.7 billion of LIHTCs and $0.1 billion of NMTCs at June 30, 2026, which are included in Equity investments on our Consolidated Balance Sheet. Comparable amounts at December 31, 2025 were $4.4 billion and $0.1 billion, respectively.

(f)Included in Deposits and Other liabilities on our Consolidated Balance Sheet.

(g)Amount includes $2.7 billion of LIHTCs and less than $0.1 billion of NMTCs at June 30, 2026, which are included in Other liabilities on our Consolidated Balance Sheet. Comparable amounts at December 31, 2025 were $2.6 billion and less than $0.1 billion, respectively.

The PNC Financial Services Group, Inc. – Form 10-Q 71

We make certain equity investments in various tax credit limited partnerships or LLCs. The purpose of these investments is to achieve a satisfactory return on capital and to assist us in achieving goals associated with the CRA. Within income taxes, during the six months ended June 30, 2026, we recognized $0.3 billion of amortization, $0.3 billion of tax credits and $0.1 billion of other tax benefits associated with qualified investments in LIHTCs and NMTCs. During the six months ended June 30, 2025, comparable amounts were $0.3 billion, $0.3 billion and less than $0.1 billion, respectively.

N****OTE 6 G****OODWILL AND M****ORTGAGE S****ERVICING R****IGHTS

Goodwill

Goodwill increased $2.4 billion during the six months ended June 30, 2026 as a result of the acquisition of FirstBank, and was allocated to our Retail segment. See Note 2 Acquisition Activity for additional information on the acquisition. See also Note 5 Goodwill and Mortgage Servicing Rights in our 2025 Form 10-K for more information regarding our goodwill.

Mortgage Servicing Rights

We recognize the right to service mortgage loans for others as an intangible asset when the benefits of servicing are expected to be more than adequate compensation to a servicer for performing the servicing. MSRs are recognized either when purchased or when originated loans are sold with servicing retained. MSRs totaled $3.8 billion at June 30, 2026 and $3.7 billion at December 31, 2025, and consisted of loan servicing contracts for commercial and residential mortgages measured at fair value.

We recognize gains or losses on changes in the fair value of MSRs. MSRs are subject to changes in value from actual or expected prepayment of the underlying loans and defaults, as well as market driven changes in interest rates. We manage this risk by economically hedging the fair value of MSRs with securities, derivative instruments and resale agreements, which are expected to increase (or decrease) in value when the value of MSRs decreases (or increases).

See the Sensitivity Analysis section of this Note 6 for more detail on our fair value measurement of MSRs. See Note 5 Goodwill and Mortgage Servicing Rights and Note 14 Fair Value in our 2025 Form 10-K for more detail on our fair value measurement and our accounting of MSRs.

Changes in the commercial and residential MSRs follow:

Table 62: Mortgage Servicing Rights


	Commercial MSRs				Residential MSRs
In millions	2026		2025		2026		2025
January 1	$	1,021	$	1,085	$	2,638	$	2,626
Additions:
FirstBank Acquisition	—		—		10		—
From loans sold with servicing retained	26		24		20		14
Purchases	31		45		240		1
Changes in fair value due to:
Time and payoffs (a)	(146)		(155)		(155)		(127)
Other (b)	107		11		9		(57)
June 30	$	1,039	$	1,010	$	2,762	$	2,457
Related unpaid principal balance of loans serviced at June 30	$	294,011	$	294,675	$	208,949	$	189,216
Servicing advances June 30	$	690	$	707	$	103	$	110

(a)Represents decrease in MSR value due to passage of time, which includes the impact from regularly scheduled loan principal payments, prepayments and loans that were paid off during the period.

(b)Includes MSR value changes resulting from changes in interest rates and other market-driven conditions.

72 The PNC Financial Services Group, Inc. – Form 10-Q

Sensitivity Analysis

The fair value of commercial and residential MSRs and significant inputs to the valuation models as of June 30, 2026 and December 31, 2025 are shown in Tables 63 and 64. The expected and actual rates of mortgage loan prepayments are significant factors driving the fair value. Management uses both internal proprietary models and a third-party model to estimate future commercial mortgage loan prepayments and a third-party model to estimate future residential mortgage loan prepayments. These models have been refined based on current market conditions and management judgment. Future interest rates are another important factor in the valuation of MSRs. Management utilizes market implied forward interest rates to estimate the future direction of mortgage and discount rates. The forward rates utilized are derived from the current yield curve for U.S. dollar interest rate swaps and are consistent with pricing of capital markets instruments. Changes in the shape and slope of the forward curve in future periods may result in volatility in the fair value estimate.

A sensitivity analysis of the hypothetical effect on the fair value of MSRs to adverse changes in key assumptions is presented in Tables 63 and 64. These sensitivities do not include the impact of the related hedging activities. Changes in fair value generally cannot be extrapolated because the relationship of the change in the assumption to the change in fair value may not be linear. Also, the effect of a variation in a particular assumption on the fair value of the MSRs is calculated independently without changing any other assumption. Changes in one factor may result in changes in another (e.g., changes in mortgage interest rates, which drive changes in prepayment rate estimates, could result in changes in the interest rate spread), which could either magnify or counteract the sensitivities.

The following tables set forth the fair value of commercial and residential MSRs and the sensitivity analysis of the hypothetical effect on the fair value of MSRs to immediate adverse changes of 10% and 20% in those assumptions.

Table 63: Commercial Mortgage Servicing Rights – Key Valuation Assumptions


Dollars in millions	June 30, 2026			December 31, 2025
Fair value	$	1,039		$	1,021
Weighted-average life (years)	3.6			3.8
Weighted-average constant prepayment rate	4.51		%	4.43		%
Decline in fair value from 10% adverse change	$	7		$	8
Decline in fair value from 20% adverse change	$	15		$	16
Effective discount rate	10.94		%	10.60		%
Decline in fair value from 10% adverse change	$	31		$	30
Decline in fair value from 20% adverse change	$	61		$	61

Table 64: Residential Mortgage Servicing Rights – Key Valuation Assumptions


Dollars in millions	June 30, 2026			December 31, 2025
Fair value	$	2,762		$	2,638
Weighted-average life (years)	7.4			7.7
Weighted-average constant prepayment rate	6.77		%	6.73		%
Decline in fair value from 10% adverse change	$	65		$	64
Decline in fair value from 20% adverse change	$	125		$	124
Weighted-average option adjusted spread	708		bps	734		bps
Decline in fair value from 10% adverse change	$	80		$	82
Decline in fair value from 20% adverse change	$	156		$	159

Fees from mortgage loan servicing, which include contractually specified servicing fees, late fees and ancillary fees were $0.2 billion for both the three months ended June 30, 2026 and 2025, and $0.4 billion for both the six months ended June 30, 2026 and 2025. We also generate servicing fees from activities provided to others for which we do not have an associated servicing asset. Fees from commercial and residential MSRs are reported within Residential and commercial mortgage noninterest income on our Consolidated Income Statement.

The PNC Financial Services Group, Inc. – Form 10-Q 73

N****OTE 7 L****EASES

PNC’s lessor arrangements primarily consist of direct financing, sales-type and operating leases for equipment. Lease agreements may include options to renew and for the lessee to purchase the leased equipment at the end of the lease term. For more information on lease accounting, see Note 1 Accounting Policies and Note 6 Leases in our 2025 Form 10-K.

The following table provides details on our income from lessor arrangements.

Table 65: Lessor Income


	Three months ended June 30				Six months ended June 30
In millions	2026		2025		2026		2025
Sales-type and direct financing leases (a)	$	91	$	85	$	183	$	170
Operating leases (b)	7		8		15		17
Lease income	$	98	$	93	$	198	$	187

(a)Included in Loans interest income on our Consolidated Income Statement.

(b)Included in Lending and deposit services noninterest income on our Consolidated Income Statement.

N****OTE 8 B****ORROWED F****UNDS

The following table shows the carrying value of total borrowed funds at June 30, 2026 (including adjustments related to accounting hedges, purchase accounting and unamortized original issuance discounts) by remaining contractual maturity.

Table 66: Borrowed Funds


In millions
Less than 1 year	$	21,005
1 to 2 years	16,236
2 to 3 years	20,954
3 to 4 years	6,172
4 to 5 years	2,646
Over 5 years	18,710
Total	$	85,723

The following table presents the contractual rates and maturity dates of our FHLB advances, senior debt and subordinated debt as of June 30, 2026, and the carrying values as of June 30, 2026 and December 31, 2025.

Table 67: FHLB Advances, Senior Debt and Subordinated Debt


	Stated Rate	Maturity	Carrying Value
Dollars in millions	June 30, 2026	June 30, 2026	June 30, 2026		December 31, 2025
Parent Company
Senior debt	1.15% - 6.88%	2026 - 2036	$	35,165	$	32,650
Subordinated debt	4.63% - 5.42%	2033 - 2041	2,278		808
Junior subordinated debt	4.49%	2028	206		206
Total Parent Company			37,649		33,664
Bank
Federal Home Loan Bank advances (a)	3.25% - 4.21%	2026 - 2031	40,416		13,000
Senior debt	3.10% - 4.43%	2027 - 2043	2,979		5,992
Subordinated debt	2.70% - 4.05%	2028 - 2029	1,912		2,002
Total Bank			45,307		20,994
Total			$	82,956	$	54,658

(a)FHLB advances are generally collateralized by residential mortgage loans, other mortgage-related loans and investment securities.

In Table 67, the carrying values for parent company senior and subordinated debt include basis adjustments of $(423) million and $(65) million, respectively, whereas Bank senior and subordinated debt include basis adjustments of $(42) million and $(84) million, respectively, related to fair value accounting hedges as of June 30, 2026.

Certain borrowings are reported at fair value. Refer to Note 12 Fair Value for more information on those borrowings.

For further information regarding junior subordinated debentures, refer to Note 9 Borrowed Funds in our 2025 Form 10-K.

74 The PNC Financial Services Group, Inc. – Form 10-Q

N****OTE 9 C****OMMITMENTS

In the normal course of business, we have various commitments outstanding, certain of which are not included on our Consolidated Balance Sheet. The following table presents our outstanding commitments to extend credit along with other commitments as of June 30, 2026 and December 31, 2025, respectively.

Table 68: Commitments to Extend Credit and Other Commitments


In millions	June 30, 2026		December 31, 2025
Commitments to extend credit
Commercial	$	253,827	$	236,142
Home equity	24,154		23,684
Credit card	42,216		39,536
Other	8,202		7,798
Total commitments to extend credit	328,399		307,160
Net outstanding standby letters of credit (a)	12,483		11,452
Standby bond purchase agreements (b)	1,041		1,026
Other commitments (c)	6,540		6,521
Total commitments to extend credit and other commitments	$	348,463	$	326,159

(a)Net outstanding standby letters of credit that support remarketing programs were $3.6 billion and $3.2 billion at June 30, 2026 and December 31, 2025, respectively.

(b)We enter into standby bond purchase agreements to support municipal bond obligations.

(c)Includes $2.8 billion and $3.0 billion related to investments that qualify for PAM at June 30, 2026 and December 31, 2025, respectively. For additional information on PAM, refer to Note 1 Accounting Policies in our 2025 Form 10-K.

Commitments to Extend Credit

Commitments to extend credit, or net unfunded loan commitments, represent arrangements to lend funds or provide liquidity subject to specified contractual conditions. These commitments generally have fixed expiration dates, may require payment of a fee and generally contain termination clauses in the event the customer’s credit quality deteriorates.

Net Outstanding Standby Letters of Credit

We issue standby letters of credit and share in the risk of standby letters of credit issued by other financial institutions, in each case to support obligations of our customers to third parties, such as insurance requirements and the facilitation of transactions involving capital markets product execution. Approximately 98% of our net outstanding standby letters of credit were rated as Pass at June 30, 2026, with the remainder rated as Criticized. An internal credit rating of Pass indicates the expected risk of loss is currently low, while a rating of Criticized indicates a higher degree of risk.

If the customer fails to meet its financial or performance obligation to the third party under the terms of the contract or there is a need to support a remarketing program, then upon a draw by a beneficiary, subject to the terms of the letter of credit, we would be obligated to make payment to them. The standby letters of credit outstanding on June 30, 2026 had terms ranging from less than one year to 11 years.

As of June 30, 2026, assets of $1.2 billion secured certain specifically identified standby letters of credit. In addition, a portion of the remaining standby letters of credit issued on behalf of specific customers is secured by collateral or guarantees that secure the customers’ other obligations to us. The carrying amount of the liability for our obligations related to standby letters of credit and participations in standby letters of credit was $0.2 billion at June 30, 2026 and is primarily included in Other liabilities on our Consolidated Balance Sheet.

The PNC Financial Services Group, Inc. – Form 10-Q 75

N****OTE 10 T****OTAL E****QUITY A****ND O****THER C****OMPREHENSIVE I****NCOME

Activity in total equity for the three and six months ended June 30, 2026 and 2025 is as follows:

Table 69: Rollforward of Total Equity


				Shareholders’ Equity
In millions	Shares Outstanding Common Stock			Common Stock		Capital Surplus - Preferred Stock		Capital Surplus - Common Stock and Other		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock				Noncontrolling Interests		Total Equity
Three months ended
Balance at March 31, 2025 (a)	396			$	2,717	$	5,751	$	12,980	$	60,051	$	(5,237)	$	(19,857)			$	46	$	56,451
Net income	—			—		—		—		1,627		—		—				16		1,643
Other comprehensive income (loss), net of tax	—			—		—		—		—		555		—				—		555
Cash dividends declared - Common	—			—		—		—		(642)		—		—				—		(642)
Cash dividends declared - Preferred	—			—		—		—		(83)		—		—				—		(83)
Preferred stock discount accretion	—			—		2		—		(2)		—		—				—		—
Common stock activity	—			—		—		18		—		—		—				—		18
Treasury stock activity	(2)			—		—		5		—		—		(331)				—		(326)
Other	—			—		—		53		—		—		—				(14)		39
Balance at June 30, 2025 (a)	394			$	2,717	$	5,753	$	13,056	$	60,951	$	(4,682)	$	(20,188)			$	48	$	57,655
Balance at March 31, 2026 (a)	402			$	2,786	$	5,878	$	16,048	$	64,256	$	(3,773)	$	(21,568)			$	49	$	63,676
Net income	—			—		—		—		2,040		—		—				15		2,055
Other comprehensive income (loss), net of tax	—			—		—		—		—		(347)		—				—		(347)
Cash dividends declared - Common	—			—		—		—		(691)		—		—				—		(691)
Cash dividends declared - Preferred	—			—		—		—		(85)		—		—				—		(85)
Preferred stock discount accretion/premium amortization	—			—		2		—		(2)		—		—				—		—
Common stock activity	—			—		—		17		—		—		—				—		17
Treasury stock activity	(3)			—		—		8		—		—		(607)				—		(599)
Other	—			—		—		46		—		—		—				(11)		35
Balance at June 30, 2026 (a)	399			$	2,786	$	5,880	$	16,119	$	65,518	$	(4,120)	$	(22,175)			$	53	$	64,061
Six months ended
Balance at December 31, 2024 (a)	396			$	2,717	$	5,749	$	12,961	$	59,282	$	(6,565)	$	(19,719)			$	44	$	54,469
Net income	—			—		—		—		3,108		—		—				34		3,142
Other comprehensive income (loss), net of tax	—			—		—		—		—		1,883		—				—		1,883
Cash dividends declared - Common	—			—		—		—		(1,281)		—		—				—		(1,281)
Cash dividends declared - Preferred	—			—		—		—		(154)		—		—				—		(154)
Preferred stock discount accretion	—			—		4		—		(4)		—		—				—		—
Common stock activity	—			—		—		18		—		—		—				—		18
Treasury stock activity	(2)			—		—		107		—		—		(469)				—		(362)
Other	—			—		—		(30)		—		—		—				(30)		(60)
Balance at June 30, 2025 (a)	394			$	2,717	$	5,753	$	13,056	$	60,951	$	(4,682)	$	(20,188)			$	48	$	57,655
Balance at December 31, 2025 (a)	390			$	2,717	$	5,758	$	13,164	$	63,266	$	(3,408)	$	(20,912)			$	51	$	60,636
Net income	—			—		—		—		3,800		—		—				27		3,827
Other comprehensive income (loss), net of tax	—			—		—		—		—		(712)		—				—		(712)
Cash dividends declared - Common	—			—		—		—		(1,387)		—		—				—		(1,387)
Cash dividends declared - Preferred	—			—		—		—		(158)		—		—				—		(158)
Preferred stock discount accretion/premium amortization	—			—		3		—		(3)		—		—				—		—
Common stock activity (b)	14			69		—		2,849		—		—		—				—		2,918
Treasury stock activity	(5)			—		—		96		—		—		(1,263)				—		(1,167)
Other (c)	—			—		119		10		—		—		—				(25)		104
Balance at June 30, 2026 (a)	399	$	—	$	2,786	$	5,880	$	16,119	$	65,518	$	(4,120)	$	(22,175)	$	—	$	53	$	64,061

(a)The par value of our preferred stock outstanding was less than $0.5 million at each date and, therefore, is excluded from this presentation.

(b)Includes $2.9 billion in common stock issuances related to the FirstBank acquisition.

(c)Includes $119 million in preferred stock issuances and $29 million in restricted stock acquisition consideration related to the FirstBank acquisition.

76 The PNC Financial Services Group, Inc. – Form 10-Q

Details of other comprehensive income (loss) are as follows:

Table 70: Other Comprehensive Income (Loss)


	Three months ended June 30												Six months ended June 30
	2026						2025						2026						2025
In millions	Pre-tax		Tax effect		After-tax		Pre-tax		Tax effect		After-tax		Pre-tax		Tax effect		After-tax		Pre-tax		Tax effect		After-tax
Debt securities
Net unrealized gains (losses) on securities	$	(180)	$	43	$	(137)	$	82	$	(20)	$	62	$	(469)	$	114	$	(355)	$	830	$	(202)	$	628
Less: Net realized (losses) reclassified to earnings (a)	(289)		70		(219)		(181)		44		(137)		(419)		102		(317)		(362)		88		(274)
Net change	109		(27)		82		263		(64)		199		(50)		12		(38)		1,192		(290)		902
Cash flow hedge derivatives
Net unrealized gains (losses) on cash flow hedge derivatives	(623)		152		(471)		299		(73)		226		(1,012)		247		(765)		930		(226)		704
Less: Net realized (losses) reclassified to earnings (a)	(67)		16		(51)		(186)		45		(141)		(124)		30		(94)		(380)		92		(288)
Net change	(556)		136		(420)		485		(118)		367		(888)		217		(671)		1,310		(318)		992
Pension and other postretirement benefit plan adjustments
Net pension and other postretirement benefit plan activity and other reclassified to earnings (b)	(6)		1		(5)		(19)		4		(15)		2		(1)		1		(21)		5		(16)
Net change	(6)		1		(5)		(19)		4		(15)		2		(1)		1		(21)		5		(16)
Other
Net unrealized gains (losses) on other transactions	(5)		1		(4)		(2)		6		4		(4)		—		(4)		(3)		8		5
Net change	(5)		1		(4)		(2)		6		4		(4)		—		(4)		(3)		8		5


Total other comprehensive income (loss)	$	(458)	$	111	$	(347)	$	727	$	(172)	$	555	$	(940)	$	228	$	(712)	$	2,478	$	(595)	$	1,883

(a)Reclassifications for pre-tax debt securities and cash flow hedges are recorded in Interest income and Noninterest income on the Consolidated Income Statement.

(b)Reclassifications include amortization of actuarial losses (gains) and amortization of prior period service costs (credits), which are recorded in Noninterest expense on the Consolidated Income Statement.

Table 71: Accumulated Other Comprehensive Income (Loss) Components


In millions, after-tax	Debt securities		Cash flow hedge derivatives		Pension and other postretirement benefit plan adjustments		Other		Total
Three months ended
Balance at March 31, 2025	$	(4,396)	$	(689)	$	(110)	$	(42)	$	(5,237)
Net activity	199		367		(15)		4		555
Balance at June 30, 2025 (a)	$	(4,197)	$	(322)	$	(125)	$	(38)	$	(4,682)
Balance at March 31, 2026	$	(3,423)	$	(432)	$	124	$	(42)	$	(3,773)
Net activity	82		(420)		(5)		(4)		(347)
Balance at June 30, 2026 (a)	$	(3,341)	$	(852)	$	119	$	(46)	$	(4,120)
Six months ended
Balance at December 31, 2024	$	(5,099)	$	(1,314)	$	(109)	$	(43)	$	(6,565)
Net activity	902		992		(16)		5		1,883
Balance at June 30, 2025 (a)	$	(4,197)	$	(322)	$	(125)	$	(38)	$	(4,682)
Balance at December 31, 2025	$	(3,303)	$	(181)	$	118	$	(42)	$	(3,408)
Net activity	(38)		(671)		1		(4)		(712)
Balance at June 30, 2026 (a)	$	(3,341)	$	(852)	$	119	$	(46)	$	(4,120)

(a)AOCI included pre-tax losses of $230 million and $265 million from derivatives that hedged the purchase of investment securities classified as held-to-maturity at June 30, 2026 and June 30, 2025, respectively.

The PNC Financial Services Group, Inc. – Form 10-Q 77

The following table provides the dividends per share for PNC’s common and preferred stock:

Table 72: Dividends Per Share (a)


	Three months ended June 30				Six months ended June 30
	2026		2025		2026		2025
Common Stock	$	1.70	$	1.60	$	3.40	$	3.20
Preferred Stock
Series B	$	0.45	$	0.45	$	0.90	$	0.90

Series S	$	2,500	$	2,500	$	2,500	$	2,500
Series T	$	850	$	850	$	1,700	$	1,700
Series U	$	1,500	$	1,500	$	3,000	$	3,000
Series V	$	1,550	$	1,550	$	3,100	$	3,100
Series W	$	1,562	$	1,562	$	3,125	$	3,125
Series X	$	18.13	$	—	$	36.26	$	—

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

On July 6, 2026, the PNC Board of Directors raised the quarterly cash dividend on common stock to $2.00 per share. The dividend is payable on August 5, 2026 to shareholders of record at the close of business July 20, 2026.

N****OTE 11 E****ARNINGS P****ER S****HARE

Table 73: Basic and Diluted Earnings Per Common Share


	Three months ended June 30				Six months ended June 30
In millions, except per share data	2026		2025		2026		2025
Basic
Net income	$	2,055	$	1,643	$	3,827	$	3,142
Less:
Net income attributable to noncontrolling interests	15		16		27		34
Preferred stock dividends	85		83		158		154
Preferred stock discount accretion and redemptions	2		2		3		4
Net income attributable to common shareholders	1,953		1,542		3,639		2,950
Less: Dividends and undistributed earnings allocated to nonvested restricted shares	12		10		23		19
Net income attributable to basic common shareholders	$	1,941	$	1,532	$	3,616	$	2,931



Basic weighted-average common shares outstanding	403		397		404		398
Basic earnings per common share (a)	$	4.82	$	3.86	$	8.95	$	7.37


Diluted
Net income attributable to diluted common shareholders	$	1,941	$	1,532	$	3,616	$	2,931





Diluted weighted-average common shares outstanding	403		397		404		398
Diluted earnings per common share (a)	$	4.81	$	3.85	$	8.94	$	7.37

(a)Basic and diluted earnings per share under the two-class method are determined on net income reported on the income statement less earnings allocated to nonvested restricted shares and restricted share units with nonforfeitable dividends and dividend rights (participating securities).

78 The PNC Financial Services Group, Inc. – Form 10-Q

N****OTE 12 F****AIR V****ALUE

Fair Value Measurement

We measure certain financial assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or the price that would be paid to transfer a liability on the measurement date and is determined using an exit price in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The fair value hierarchy established by GAAP requires us to maximize the use of observable inputs when measuring fair value. For more information regarding the fair value hierarchy, see Note 14 Fair Value in our 2025 Form 10-K. Additionally, for more information regarding the fair value of assets and liabilities from our FirstBank acquisition, see Note 2 Acquisition Activity.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

For more information on the valuation methodologies used to measure assets and liabilities at fair value on a recurring basis, see Note 14 Fair Value in our 2025 Form 10-K. The following table summarizes our assets and liabilities measured at fair value on a recurring basis, including instruments for which we have elected the fair value option.

Table 74: Fair Value Measurements – Recurring Basis Summary


	June 30, 2026								December 31, 2025
In millions	Level 1		Level 2		Level 3		Total Fair Value		Level 1		Level 2		Level 3		Total Fair Value
Assets
Residential mortgage loans held for sale	$	—	$	677	$	70	$	747	$	—	$	552	$	108	$	660
Commercial mortgage loans held for sale	—		558		—		558		—		1,059		—		1,059

Securities available-for-sale
U.S. Treasury and government agencies	27,142		1,383		—		28,525		27,871		1,026		—		28,897
Residential mortgage-backed
Agency	—		33,888		—		33,888		—		30,663		—		30,663
Non-agency	—		—		517		517		—		—		548		548
Commercial mortgage-backed
Agency	—		3,361		—		3,361		—		3,372		—		3,372
Non-agency	—		79		79		158		—		173		79		252
Asset-backed	—		2,467		82		2,549		—		2,210		87		2,297
Other	—		2,047		55		2,102		—		2,051		55		2,106
Total securities available-for-sale	27,142		43,225		733		71,100		27,871		39,495		769		68,135
Loans	—		508		585		1,093		—		492		620		1,112
Equity investments (a)	1,264		—		2,355		4,001		820		—		2,503		3,642
Residential mortgage servicing rights	—		—		2,762		2,762		—		—		2,638		2,638
Commercial mortgage servicing rights	—		—		1,039		1,039		—		—		1,021		1,021
Trading securities (b)	2,464		4,500		—		6,964		2,662		4,104		—		6,766
Financial derivatives (b) (c)	3		2,642		7		2,652		6		2,660		6		2,672
Other assets	547		142		18		707		506		162		14		682
Total assets (d)	$	31,420	$	52,252	$	7,569	$	91,623	$	31,865	$	48,524	$	7,679	$	88,387
Liabilities
Interest-bearing deposits	$	—	$	783	$	—	$	783	$	—	$	3,642	$	—	$	3,642
Other borrowed funds	905		332		4		1,241		752		189		7		948
Financial derivatives (c) (e)	7		3,948		97		4,052		1		3,546		79		3,626
Other liabilities	—		30		122		152		—		23		137		160
Total liabilities (f)	$	912	$	5,093	$	223	$	6,228	$	753	$	7,400	$	223	$	8,376

(a)Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.

(b)Included in Other assets on the Consolidated Balance Sheet.

(c)Amounts at June 30, 2026 and December 31, 2025 are presented gross and are not reduced by the impact of legally enforceable master netting agreements that allow us to net positive and negative positions and cash collateral held or placed with the same counterparty. See Note 13 Financial Derivatives for additional information related to derivative offsetting.

(d)Total assets at fair value as a percentage of total consolidated assets was 15% at both June 30, 2026 and December 31, 2025. Level 3 assets as a percentage of total assets at fair value was 8% and 9% at June 30, 2026 and December 31, 2025, respectively. Level 3 assets as a percentage of total consolidated assets was 1% at both June 30, 2026 and December 31, 2025.

(e)Included in Other liabilities on the Consolidated Balance Sheet.

(f)Total liabilities at fair value as a percentage of total consolidated liabilities was 1% and 2% at June 30, 2026 and December 31, 2025, respectively. Level 3 liabilities as a percentage of total liabilities at fair value was 4% and 3% at June 30, 2026 and December 31, 2025, respectively. Level 3 liabilities as a percentage of total consolidated liabilities was less than 1% at both June 30, 2026 and December 31, 2025.

The PNC Financial Services Group, Inc. – Form 10-Q 79

Reconciliations of assets and liabilities measured at fair value on a recurring basis using Level 3 inputs for the three and six months ended June 30, 2026 and 2025 are as follows:

Table 75: Reconciliation of Level 3 Assets and Liabilities

Three Months Ended June 30, 2026


			Total realized / unrealized gains or losses for the period (a)																				Unrealized gains/losses for the period on assets and liabilities held on Consolidated Balance Sheet at June 30, 2026 (a) (c)
Level 3 Instruments Only In millions	Fair Value Mar. 31, 2026		Included in Earnings		Included in Other comprehensive income (b)			Purchases		Sales		Issuances		Settlements		Transfers into Level 3		Transfers out of Level 3			Fair Value June 30, 2026
Assets
Residential mortgage loans held for sale	$	74	$	—		$	—	$	2	$	—	$	—	$	(2)	$	1	$	(5)	(d)	$	70	$	—


Securities available-for-sale
Residential mortgage- backed non-agency	533		2			(3)		—		—		—		(15)		—		—			517		—
Commercial mortgage- backed non-agency	79		—			—		—		—		—		—		—		—			79		—
Asset-backed	84		1			—		—		—		—		(3)		—		—			82		—
Other	55		—			—		3		—		—		(3)		—		—			55		—
Total securities available-for-sale	751		3			(3)		3		—		—		(21)		—		—			733		—
Loans	599		2			—		5		—		—		(19)		3		(5)		(d)	585		1
Equity investments	2,341		32			—		50		(68)		—		—		—		—			2,355		23
Residential mortgage servicing rights	2,786		22			—		26		—		10		(82)		—		—			2,762		22
Commercial mortgage servicing rights	1,030		58			—		15		—		11		(75)		—		—			1,039		58

Financial derivatives	5		11			—		1		—		—		(10)		—		—			7		11
Other assets	15		—			2		1		—		—		—		—		—			18		—
Total assets	$	7,601	$	128		$	(1)	$	103	$	(68)	$	21	$	(209)	$	4	$	(10)		$	7,569	$	115
Liabilities
Other borrowed funds	$	5	$	—		$	—	$	—	$	—	$	2	$	(3)	$	—	$	—		$	4	$	—
Financial derivatives	35		82			—		—		6		—		(26)		—		—			97		87
Other liabilities	137		3			—		—		—		26		(44)		—		—			122		3
Total liabilities	$	177	$	85		$	—	$	—	$	6	$	28	$	(73)	$	—	$	—		$	223	$	90
Net gains (losses)			$	43	(e)																		$	25	(f)

80 The PNC Financial Services Group, Inc. – Form 10-Q

(Continued from previous page)

Three Months Ended June 30, 2025


			Total realized / unrealized gains or losses for the period (a)																				Unrealized gains/losses for the period on assets and liabilities held on Consolidated Balance Sheet at June 30, 2025 (a) (c)
Level 3 Instruments Only In millions	Fair Value Mar. 31, 2025		Included in Earnings		Included in Other comprehensive income (b)			Purchases		Sales		Issuances		Settlements		Transfers into Level 3		Transfers out of Level 3			Fair Value June 30, 2025
Assets
Residential mortgage loans held for sale	$	104	$	1		$	—	$	32	$	(1)	$	—	$	(2)	$	1	$	(5)	(d)	$	130	$	1
Commercial mortgage loans held for sale	4		—			—		—		—		—		(3)		—		—			1		—

Securities available-for-sale
Residential mortgage- backed non-agency	596		3			1		—		—		—		(19)		—		—			581		—
Commercial mortgage- backed non-agency	99		—			2		—		—		—		(22)		—		—			79		—
Asset-backed	92		—			—		—		—		—		(2)		—		—			90		—
Other	54		1			1		3		—		—		(4)		—		—			55		—
Total securities available-for-sale	841		4			4		3		—		—		(47)		—		—			805		—
Loans	663		—			—		10		(1)		—		(19)		7		(9)		(d)	651		—
Equity investments	2,223		9			—		40		(40)		—		—		—		—			2,232		5
Residential mortgage servicing rights	2,523		(6)			—		—		—		7		(67)		—		—			2,457		(6)
Commercial mortgage servicing rights	1,041		13			—		18		—		15		(77)		—		—			1,010		13

Financial derivatives	10		6			—		1		—		—		(8)		—		—			9		11
Other assets	12		—			2		—		(1)		—		—		—		—			13		—
Total assets	$	7,421	$	27		$	6	$	104	$	(43)	$	22	$	(223)	$	8	$	(14)		$	7,308	$	24
Liabilities
Other borrowed funds	$	13	$	—		$	—	$	—	$	—	$	5	$	(7)	$	—	$	—		$	11	$	—
Financial derivatives	161		4			—		—		3		—		(59)		—		—			109		7
Other liabilities	129		6			—		—		—		—		(17)		—		—			118		3
Total liabilities	$	303	$	10		$	—	$	—	$	3	$	5	$	(83)	$	—	$	—		$	238	$	10
Net gains (losses)			$	17	(e)																		$	14	(f)

The PNC Financial Services Group, Inc. – Form 10-Q 81

(Continued from previous page)

Six Months Ended June 30, 2026


			Total realized / unrealized gains or losses for the period (a)																						Unrealized gains/losses for the period on assets and liabilities held on Consolidated Balance Sheet at June 30, 2026 (a) (c)
Level 3 Instruments Only In millions	Fair Value Dec. 31, 2025		Included in Earnings		Included in Other comprehensive income (b)			Purchases		Sales		Issuances		Settlements		Transfers into Level 3		Transfers out of Level 3			Impact from FirstBank Acquisition		Fair Value June 30, 2026
Assets
Residential mortgage loans held for sale	$	108	$	—		$	—	$	2	$	(33)	$	—	$	(4)	$	3	$	(6)	(d)	$	—	$	70	$	—


Securities available-for-sale
Residential mortgage- backed non-agency	548		5			(6)		—		—		—		(30)		—		—			—		517		—
Commercial mortgage- backed non-agency	79		—			—		—		—		—		—		—		—			—		79		—
Asset-backed	87		1			—		—		—		—		(6)		—		—			—		82		—
Other	55		1			—		3		—		—		(4)		—		—			—		55		—
Total securities available-for-sale	769		7			(6)		3		—		—		(40)		—		—			—		733		—
Loans	620		4			—		11		—		—		(38)		3		(15)		(d)	—		585		4
Equity investments	2,503		6			—		108		(262)		—		—		—		—			—		2,355		(12)
Residential mortgage servicing rights	2,638		9			—		240		—		20		(155)		—		—			10		2,762		9
Commercial mortgage servicing rights	1,021		107			—		31		—		26		(146)		—		—			—		1,039		107

Financial derivatives	6		19			—		1		—		—		(19)		—		—			—		7		19
Other assets	14		—			2		2		—		—		—		—		—			—		18		—
Total assets	$	7,679	$	152		$	(4)	$	398	$	(295)	$	46	$	(402)	$	6	$	(21)		$	10	$	7,569	$	127
Liabilities
Other borrowed funds	$	7	$	—		$	—	$	—	$	—	$	5	$	(8)	$	—	$	—		$	—	$	4	$	—
Financial derivatives	79		107			—		—		14		—		(103)		—		—			—		97		121
Other liabilities	137		(2)			—		—		—		240		(253)		—		—			—		122		2
Total liabilities	$	223	$	105		$	—	$	—	$	14	$	245	$	(364)	$	—	$	—		$	—	$	223	$	123
Net gains (losses)			$	47	(e)																				$	4	(f)

82 The PNC Financial Services Group, Inc. – Form 10-Q

(Continued from previous page)

Six Months Ended June 30, 2025


			Total realized / unrealized gains or losses for the period (a)																				Unrealized gains/losses for the period on assets and liabilities held on Consolidated Balance Sheet at June 30, 2025 (a) (c)
Level 3 Instruments Only In millions	Fair Value Dec. 31, 2024		Included in Earnings		Included in Other comprehensive income (b)			Purchases		Sales		Issuances		Settlements		Transfers into Level 3		Transfers out of Level 3			Fair Value June 30, 2025
Assets
Residential mortgage loans held for sale	$	68	$	1		$	—	$	73	$	(1)	$	—	$	(6)	$	5	$	(10)	(d)	$	130	$	1
Commercial mortgage loans held for sale	4		—			—		—		—		—		(3)		—		—			1		—

Securities available-for-sale
Residential mortgage- backed non-agency	603		5			9		—		—		—		(36)		—		—			581		—
Commercial mortgage- backed non-agency	103		(3)			1		—		—		—		(22)		—		—			79		(3)
Asset-backed	93		1			1		—		—		—		(5)		—		—			90		—
Other	54		1			1		3		—		—		(4)		—		—			55		—
Total securities available-for-sale	853		4			12		3		—		—		(67)		—		—			805		(3)
Loans	670		5			—		17		(1)		—		(38)		7		(9)		(d)	651		5
Equity investments	2,111		55			—		216		(150)		—		—		—		—			2,232		29
Residential mortgage servicing rights	2,626		(57)			—		1		—		14		(127)		—		—			2,457		(57)
Commercial mortgage servicing rights	1,085		11			—		45		—		24		(155)		—		—			1,010		11

Financial derivatives	4		19			—		1		—		—		(15)		—		—			9		20
Other assets	10		—			2		2		(1)		—		—		—		—			13		—
Total assets	$	7,431	$	38		$	14	$	358	$	(153)	$	38	$	(411)	$	12	$	(19)		$	7,308	$	6
Liabilities
Other borrowed funds	$	10	$	—		$	—	$	—	$	—	$	10	$	(9)	$	—	$	—		$	11	$	—
Financial derivatives	150		41			—		—		3		—		(85)		—		—			109		42
Other liabilities	177		16			—		—		—		—		(75)		—		—			118		10
Total liabilities	$	337	$	57		$	—	$	—	$	3	$	10	$	(169)	$	—	$	—		$	238	$	52
Net gains (losses)			$	(19)	(e)																		$	(46)	(f)

(a)Losses for assets are bracketed while losses for liabilities are not.

(b)The difference in unrealized gains and losses for the period included in Other comprehensive income and changes in unrealized gains and losses for the period included in Other comprehensive income for securities available-for-sale held at the end of the reporting period were insignificant.

(c)The amount of the total gains or losses for the period included in earnings that is attributable to the change in unrealized gains or losses related to those assets and liabilities held at the end of the reporting period.

(d)Residential mortgage loan transfers out of Level 3 are primarily driven by residential mortgage loans transferring to OREO as well as reclassification of mortgage loans held for sale to held for investment.

(e)Net gains (losses) realized and unrealized included in earnings related to Level 3 assets and liabilities included amortization and accretion. The amortization and accretion amounts are included in Interest income on the Consolidated Income Statement and the remaining net gains (losses) realized and unrealized are included in Noninterest income on the Consolidated Income Statement.

(f)Net unrealized gains (losses) related to assets and liabilities held at the end of the reporting period are included in Noninterest income on the Consolidated Income Statement.

An instrument’s categorization within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. Changes from one quarter to the next related to the observability of inputs to a fair value measurement may result in a reclassification (transfer) of assets or liabilities between hierarchy levels.

The PNC Financial Services Group, Inc. – Form 10-Q 83

Quantitative information about the significant unobservable inputs within Level 3 recurring assets and liabilities follows:

Table 76: Fair Value Measurements – Recurring Quantitative Information


Level 3 Instruments Only Dollars in millions	Fair Value		Valuation Techniques	Unobservable Inputs	Range (Weighted-Average) (a)
June 30, 2026




Residential mortgage-backed non-agency securities	$	517	Priced by a third-party vendor using a discounted cash flow pricing model	Constant prepayment rate	1.0% - 23.1% (1.9%)
Constant default rate	0.0% - 13.5% (2.0%)
Loss severity	38.4% weighted-average
Spread over the benchmark curve (b)	163bps weighted-average




Loans - residential real estate non- government insured	453		Consensus pricing (c)	Cumulative default rate	3.6% - 100.0% (52.6%)
Loss severity	5.1% weighted-average
Discount rate	5.5% - 7.5% (5.7%)






Equity investments	2,355		Multiple of adjusted earnings	Multiple of earnings	5.5x - 19.7x (10.9x)
Residential mortgage servicing rights	2,762		Discounted cash flow	Constant prepayment rate	0.0% - 64.7% (6.8%)
Spread over the benchmark curve (b)	335bps - 3,486bps (708bps)
Commercial mortgage servicing rights	1,039		Discounted cash flow	Constant prepayment rate	4.3% - 7.1% (4.5%)
Discount rate	9.0% - 11.3% (10.9%)



Insignificant Level 3 assets, net of liabilities (d)	220
Total Level 3 assets, net of liabilities (e)	$	7,346
December 31, 2025
Residential mortgage loans held for sale	$	108	Consensus pricing (c)	Cumulative default rate	3.6% - 100.0% (33.8%)
Loss severity	5.7% weighted-average
Discount rate	5.5% - 9.0% (5.9%)
Residential mortgage-backed non-agency securities	548		Priced by a third-party vendor using a discounted cash flow pricing model	Constant prepayment rate	1.0% - 23.1% (3.7%)
Constant default rate	0.0% - 13.5% (1.9%)
Loss severity	15.0% - 100.0% (42.5%)
Spread over the benchmark curve (b)	176bps weighted-average




Loans - residential real estate non-government insured	474		Consensus pricing (c)	Cumulative default rate	3.6% - 100.0% (52.7%)
Loss severity	5.0% weighted-average
Discount rate	5.5% - 7.5% (5.7%)






Equity investments	2,503		Multiple of adjusted earnings	Multiple of earnings	5.5x - 24.0x (10.8x)
Residential mortgage servicing rights	2,638		Discounted cash flow	Constant prepayment rate	0.0% - 41.4% (6.7%)
Spread over the benchmark curve (b)	314bps - 3,270bps (734bps)
Commercial mortgage servicing rights	1,021		Discounted cash flow	Constant prepayment rate	4.3% - 7.0% (4.4%)
Discount rate	8.7% - 10.9% (10.6%)





Insignificant Level 3 assets, net of liabilities (d)	164
Total Level 3 assets, net of liabilities (e)	$	7,456

(a)Unobservable inputs were weighted by the relative fair value of the instruments.

(b)The assumed yield spread over the benchmark curve for each instrument is generally intended to incorporate non-interest rate risks, such as credit and liquidity risks.

(c)Consensus pricing refers to fair value estimates that are generally internally developed using information such as dealer quotes or other third-party provided valuations or comparable asset prices.

(d)Represents the aggregate amount of Level 3 assets and liabilities measured at fair value on a recurring basis that are individually and in the aggregate insignificant. The amount includes certain financial derivative assets and liabilities, certain debt securities available-for-sale, government insured residential real estate loans, home equity loans, other assets, other borrowed funds and other liabilities. At June 30, 2026, this amount also includes residential mortgage loans held for sale.

(e)Consists of total Level 3 assets of $7.6 billion and total Level 3 liabilities of $0.2 billion as of June 30, 2026 and $7.7 billion and $0.2 billion as of December 31, 2025, respectively.

Financial Assets Accounted for at Fair Value on a Nonrecurring Basis

We may be required to measure certain financial assets at fair value on a nonrecurring basis. These adjustments to fair value usually result from the application of lower of amortized cost or fair value accounting or write-downs of individual assets due to impairment and are included in Table 77. For more information regarding the valuation methodologies of our financial assets measured at fair value on a nonrecurring basis, see Note 14 Fair Value in our 2025 Form 10-K.

84 The PNC Financial Services Group, Inc. – Form 10-Q

Assets measured at fair value on a nonrecurring basis follow:

Table 77: Fair Value Measurements – Nonrecurring (a) (b) (c)


	Fair Value				Gains (Losses) Three months ended				Gains (Losses) Six months ended
In millions	June 30 2026		December 31 2025		June 30 2026		June 30 2025		June 30 2026		June 30 2025
Assets
Nonaccrual loans	$	366	$	510	$	(33)	$	(38)	$	(52)	$	(93)
Equity investments	253		147		5		(2)		5		(2)
Loans held for sale	—		13		(33)		—		(33)		—
OREO, foreclosed and other assets	48		49		(1)		(1)		(1)		(1)
Long-lived assets	9		6		(1)		(3)		(1)		(3)
Total assets	$	676	$	725	$	(63)	$	(44)	$	(82)	$	(99)

(a)All Level 3 for the periods presented except for $13 million included in Loans held for sale categorized as Level 2 at December 31, 2025.

(b)Valuation techniques applied are fair value of property or collateral and discounted cash flow.

(c)Unobservable inputs used are appraised value/sales price, broker opinions, market rate of return or projected income/required improvement costs. Additional quantitative information is not meaningful for the periods presented.

The PNC Financial Services Group, Inc. – Form 10-Q 85

Financial Instruments Accounted for under Fair Value Option

We elect the fair value option to account for certain financial instruments. For more information on these financial instruments for

which the fair value option election has been made, see Note 14 Fair Value in our 2025 Form 10-K.

Fair values and aggregate unpaid principal balances of items for which we elected the fair value option are as follows:

Table 78: Fair Value Option – Fair Value and Principal Balances


	June 30, 2026						December 31, 2025
In millions	Fair Value (a)		Aggregate Unpaid Principal Balance		Difference		Fair Value (a)		Aggregate Unpaid Principal Balance		Difference
Assets
Residential mortgage loans held for sale
Accruing loans less than 90 days past due	$	726	$	720	$	6	$	641	$	636	$	5
Accruing loans 90 days or more past due	8		8		—		5		5		—
Nonaccrual loans	13		15		(2)		14		15		(1)
Total	$	747	$	743	$	4	$	660	$	656	$	4
Commercial mortgage loans held for sale (b) (c)
Accruing loans less than 90 days past due	$	558	$	555	$	3	$	1,059	$	1,059	$	—


Loans
Accruing loans less than 90 days past due	$	695	$	774	$	(79)	$	716	$	796	$	(80)
Accruing loans 90 days or more past due	182		195		(13)		159		172		(13)
Nonaccrual loans	216		301		(85)		237		327		(90)
Total	$	1,093	$	1,270	$	(177)	$	1,112	$	1,295	$	(183)
Other assets	$	142	$	126	$	16	$	162	$	154	$	8
Liabilities
Interest-bearing deposits	$	783	$	784	$	(1)	$	3,642	$	3,641	$	1
Other borrowed funds	$	37	$	38	$	(1)	$	31	$	32	$	(1)
Other liabilities with contractual unpaid principal balance	$	30	$	33	$	(3)	$	23	$	25	$	(2)
Other liabilities without contractual unpaid principal balance	$	110	$	—	$	110	$	122	$	—	$	122

(a)Amounts exclude accrued interest.

(b)There were no accruing loans 90 days or more past due within this category at June 30, 2026 or December 31, 2025.

(c)There were no nonaccrual loans within this category at June 30, 2026 or December 31, 2025.

The changes in fair value for items for which we elected the fair value option are as follows:

Table 79: Fair Value Option – Changes in Fair Value Included in Earnings (a)(b)


	Gains (Losses)				Gains (Losses)
	Three months ended				Six months ended
	June 30		June 30		June 30		June 30
In millions	2026		2025		2026		2025
Assets
Residential mortgage loans held for sale	$	11	$	(8)	$	18	$	(12)
Commercial mortgage loans held for sale	$	9	$	18	$	25	$	29
Loans	$	2	$	1	$	6	$	8
Other assets	$	20	$	7	$	21	$	(2)
Liabilities
Interest-bearing deposits	$	1	$	2	$	2	$	1
Other liabilities	$	(3)	$	(4)	$	(2)	$	(11)

(a)Amounts exclude interest income and interest expense.

(b)The impact on earnings of offsetting hedged items or hedging instruments is not reflected in these amounts.

86 The PNC Financial Services Group, Inc. – Form 10-Q

Additional Fair Value Information Related to Financial Instruments Not Recorded at Fair Value

The following table presents the carrying amounts and estimated fair values, as well as the level within the fair value hierarchy, of all other financial instruments that are not recorded on our Consolidated Balance Sheet at fair value as of June 30, 2026 and December 31, 2025. For more information regarding the methods and assumptions used to estimate the fair values of financial instruments included in Table 80, see Note 14 Fair Value in our 2025 Form 10-K.

Table 80: Additional Fair Value Information Related to Other Financial Instruments


	Carrying		Fair Value
In millions	Amount		Total		Level 1		Level 2		Level 3
June 30, 2026
Assets
Cash and due from banks	$	5,951	$	5,951	$	5,951	$	—	$	—
Interest-earning deposits with banks	22,794		22,794		22,171		623		—
Securities held-to-maturity	78,410		75,522		16,635		58,730		157
Net loans (excludes leases)	355,209		352,797		—		—		352,797
Other assets	6,292		6,292		—		6,291		1
Total assets	$	468,656	$	463,356	$	44,757	$	65,644	$	352,955
Liabilities
Time deposits	$	31,767	$	31,914	$	—	$	31,914	$	—
Borrowed funds	84,411		85,519		—		85,026		493
Unfunded lending related commitments	809		809		—		—		809
Other liabilities	1,239		1,239		—		1,239		—
Total liabilities	$	118,226	$	119,481	$	—	$	118,179	$	1,302
December 31, 2025
Assets
Cash and due from banks	$	6,777	$	6,777	$	6,777	$	—	$	—
Interest-earning deposits with banks	32,936		32,936		31,975		961		—
Securities held-to-maturity	70,109		67,979		19,564		48,247		168
Net loans (excludes leases)	318,869		316,005		—		—		316,005
Other assets	5,109		5,109		—		5,109		—
Total assets	$	433,800	$	428,806	$	58,316	$	54,317	$	316,173
Liabilities
Time deposits	$	30,361	$	30,576	$	—	$	30,576	$	—
Borrowed funds	56,097		57,289		—		56,793		496
Unfunded lending related commitments	818		818		—		—		818
Other liabilities	1,091		1,091		—		1,091		—
Total liabilities	$	88,367	$	89,774	$	—	$	88,460	$	1,314

The aggregate fair values in Table 80 represent only a portion of the total market value of our assets and liabilities as, in accordance with the guidance related to fair values about financial instruments, we exclude the following:

financial instruments recorded at fair value on a recurring basis (as they are disclosed in Table 74),
investments accounted for under the equity method,
equity securities without a readily determinable fair value that apply for the alternative measurement approach to fair value under ASU 2016-01,
real and personal property,
lease financing,
loan customer relationships,
deposit customer intangibles,
retail branch networks,
fee-based businesses, such as asset management and brokerage,
trade receivables and payables due in one year or less,
deposit liabilities with no defined or contractual maturities under ASU 2016-01, and
insurance contracts.

The PNC Financial Services Group, Inc. – Form 10-Q 87

N****OTE 13 F****INANCIAL D****ERIVATIVES

We use a variety of financial derivatives to both mitigate exposure to market (primarily interest rate) and credit risks inherent in our business activities, as well as to facilitate customer risk management activities. We manage these risks as part of our overall asset and liability management process and through our credit policies and procedures. Derivatives represent contracts between parties that usually require little or no initial net investment and result in one party delivering cash or another type of asset to the other party based on a notional amount and an underlying as specified in the contract.

Derivative transactions are often measured in terms of notional amount, but this amount is generally not exchanged and it is not recorded on the balance sheet. The notional amount is the basis to which the underlying is applied to determine required payments under the derivative contract. The underlying is a referenced interest rate, security price, credit spread or other index. Residential and commercial real estate loan commitments associated with loans to be sold also qualify as derivative instruments.

For more information on derivatives, see Note 1 Accounting Policies and Note 15 Financial Derivatives in our 2025 Form 10-K.

88 The PNC Financial Services Group, Inc. – Form 10-Q

The following table presents the notional and gross fair value amounts of all derivative assets and liabilities held by us.

Table 81: Total Gross Derivatives (a)


	June 30, 2026						December 31, 2025
In millions	Notional / Contract Amount		Asset Fair Value (b)		Liability Fair Value (c)		Notional / Contract Amount		Asset Fair Value (b)		Liability Fair Value (c)
Derivatives designated for hedging
Interest rate contracts (d):
Fair value hedges	$	58,364	$	—	$	—	$	60,799	$	—	$	—
Cash flow hedges	78,277		—		—		59,994		—		—

Foreign exchange contracts:
Net investment hedges	1,472		15		—		1,387		—		6
Total derivatives designated for hedging	$	138,113	$	15	$	—	$	122,180	$	—	$	6
Derivatives not designated for hedging
Derivatives used for mortgage banking activities (e):
Interest rate contracts:
Swaps	$	41,301	$	—	$	—	$	34,357	$	—	$	—
Futures (f)	3,346		—		—		9,915		—		—
Mortgage-backed commitments	6,174		49		43		6,199		69		60
Other	11,088		19		22		12,438		25		16
Total interest rate contracts	61,909		68		65		62,909		94		76
Derivatives used for customer-related activities:
Interest rate contracts:
Swaps	392,910		1,110		2,579		409,522		1,459		2,383
Futures (f)	42		—		—		45		—		—
Mortgage-backed commitments	6,589		8		15		8,278		7		12
Other	45,064		108		105		36,493		58		49
Total interest rate contracts	444,605		1,226		2,699		454,338		1,524		2,444
Commodity contracts:
Swaps	6,045		396		374		5,129		315		288
Other	8,950		281		280		7,904		234		234
Total commodity contracts	14,995		677		654		13,033		549		522
Foreign exchange contracts and other	50,252		557		509		43,025		493		417
Total derivatives for customer-related activities	509,852		2,460		3,862		510,396		2,566		3,383
Derivatives used for other risk management activities:
Foreign exchange contracts and other	17,643		109		125		18,553		12		161
Total derivatives not designated for hedging	$	589,404	$	2,637	$	4,052	$	591,858	$	2,672	$	3,620
Total gross derivatives	$	727,517	$	2,652	$	4,052	$	714,038	$	2,672	$	3,626
Less: Impact of legally enforceable master netting agreements			1,114		1,114				1,158		1,158
Less: Cash collateral received/paid			706		698				494		743
Total derivatives			$	832	$	2,240			$	1,020	$	1,725

(a)Centrally cleared derivatives are settled in cash daily and result in no derivative asset or derivative liability being recognized on our Consolidated Balance Sheet.

(b)Included in Other assets on our Consolidated Balance Sheet.

(c)Included in Other liabilities on our Consolidated Balance Sheet.

(d)Represents primarily swaps.

(e)Includes both residential and commercial mortgage banking activities.

(f)Futures contracts are settled in cash daily and result in no derivative asset or derivative liability being recognized on our Consolidated Balance Sheet.

All derivatives are carried on our Consolidated Balance Sheet at fair value. Derivative balances are presented on the Consolidated Balance Sheet on a net basis taking into consideration the effects of legally enforceable master netting agreements and, when appropriate, any related cash collateral exchanged with counterparties. Further discussion regarding the offsetting rights associated with these legally enforceable master netting agreements is included in the Offsetting and Counterparty Credit Risk section of this Note 13. Any nonperformance risk, including credit risk, is included in the determination of the estimated net fair value of the derivatives.

The PNC Financial Services Group, Inc. – Form 10-Q 89

Derivatives Designated as Hedging Instruments

Certain derivatives used to manage interest rate and foreign exchange risk as part of our asset and liability risk management activities are designated as accounting hedges. Derivatives hedging the risks associated with changes in the fair value of assets or liabilities are considered fair value hedges, derivatives hedging the variability of expected future cash flows are considered cash flow hedges and derivatives hedging a net investment in a foreign subsidiary are considered net investment hedges. Designating derivatives as accounting hedges allows for gains and losses on those derivatives to be recognized in the same period and in the same income statement line item as the earnings impact of the hedged items.

Fair Value Hedges

We enter into receive-fixed, pay-variable interest rate swaps to hedge changes in the fair value of outstanding fixed-rate funding caused by fluctuations in market interest rates. We also enter into pay-fixed, receive-variable interest rate swaps and zero-coupon swaps to hedge changes in the fair value of fixed rate and zero-coupon investment securities caused by fluctuations in market interest rates. Gains and losses on the interest rate swaps designated in these hedge relationships, along with the offsetting gains and losses on the hedged items attributable to the hedged risk, are recognized in current earnings within the same income statement line item.

Cash Flow Hedges

We enter into receive-fixed, pay-variable interest rate swaps and interest rate caps and floors to modify the interest rate characteristics of designated commercial loans from variable to fixed in order to reduce the impact of changes in future cash flows due to market interest rate changes. We also periodically enter into forward purchase and sale contracts to hedge the variability of the consideration that will be paid or received related to the purchase or sale of investment securities. The forecasted purchase or sale is consummated upon gross settlement of the forward contract itself. For these cash flow hedges, gains and losses on the hedging instruments are recorded in AOCI and are then reclassified into earnings in the same period the hedged cash flows affect earnings and within the same income statement line as the hedged cash flows.

In the 12 months that follow June 30, 2026, we expect to reclassify net derivative losses of $27 million pre-tax, or $21 million after-tax, from AOCI to interest income for these cash flow hedge strategies. This reclassified amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations and the addition of other hedges subsequent to June 30, 2026. As of June 30, 2026, the maximum length of time over which forecasted transactions are hedged is ten years.

90 The PNC Financial Services Group, Inc. – Form 10-Q

Further detail regarding gains (losses) related to our fair value and cash flow hedge derivatives is presented in the following table.

Table 82: Gains (Losses) Recognized on Fair Value and Cash Flow Hedges in the Consolidated Income Statement (a) (b) (c)


	Location and Amount of Gains (Losses) Recognized in Income
	Interest Income				Interest Expense		Noninterest Income
In millions	Loans		Investment Securities		Borrowed Funds		Other
For the three months ended June 30, 2026
Total amounts reported on the Consolidated Income Statement	$	4,986	$	1,263	$	905	$	489
Gains (losses) on fair value hedges recognized on:
Hedged items (d)	$	—	$	(194)	$	313	$	—
Derivatives	$	—	$	195	$	(314)	$	—
Amounts related to interest settlements on derivatives	$	—	$	(8)	$	(28)	$	—
Gains (losses) on cash flow hedges (e):
Amount of derivative gains (losses) reclassified from accumulated other comprehensive income	$	(44)	$	(8)	$	—	$	(15)
Other amounts related to interest settlements on derivatives	$	3	$	—	$	—	$	—
For the three months ended June 30, 2025
Total amounts reported on the Consolidated Income Statement	$	4,609	$	1,151	$	870	$	212
Gains (losses) on fair value hedges recognized on:
Hedged items (d)	$	—	$	182	$	(318)	$	—
Derivatives	$	—	$	(180)	$	319	$	—
Amounts related to interest settlements on derivatives	$	—	$	25	$	(99)	$	—
Gains (losses) on cash flow hedges (e):
Amount of derivative gains (losses) reclassified from accumulated other comprehensive income	$	(177)	$	(9)	$	—	$	—
Other amounts related to interest settlements on derivatives	$	(3)	$	—	$	—	$	—
For the six months ended June 30, 2026
Total amounts reported on the Consolidated Income Statement	$	9,778	$	2,465	$	1,653	$	614
Gains (losses) on fair value hedges recognized on:
Hedged items (d)	$	—	$	(337)	$	513	$	—
Derivatives	$	—	$	335	$	(512)	$	—
Amounts related to interest settlements on derivatives	$	—	$	(11)	$	(64)	$	—
Gains (losses) on cash flow hedges (e):
Amount of derivative gains (losses) reclassified from accumulated other comprehensive income	$	(95)	$	(14)	$	—	$	(15)
Other amounts related to interest settlements on derivatives	$	—	$	—	$	—	$	—
For the six months ended June 30, 2025
Total amounts reported on the Consolidated Income Statement	$	9,081	$	2,275	$	1,716	$	349
Gains (losses) on fair value hedges recognized on:
Hedged items (d)	$	—	$	511	$	(876)	$	—
Derivatives	$	—	$	(509)	$	881	$	—
Amounts related to interest settlements on derivatives	$	—	$	49	$	(195)	$	—
Gains (losses) on cash flow hedges (e):
Amount of derivative gains (losses) reclassified from accumulated other comprehensive income	$	(366)	$	(16)	$	—	$	2
Other amounts related to interest settlements on derivatives	$	2	$	—	$	—	$	—

(a)For all periods presented, there were no components of derivative gains or losses excluded from the assessment of hedge effectiveness for any of the fair value or cash flow hedge strategies.

(b)All cash flow and fair value hedge derivatives were interest rate contracts for the periods presented.

(c)Gains (losses) on fair value hedges related to deposits are included in Deposits interest expense on our Consolidated Income Statement and were insignificant for all periods presented.

(d)Includes an insignificant amount of fair value hedge adjustments related to discontinued hedge relationships.

(e)For all periods presented, there were no gains or losses from cash flow hedge derivatives reclassified to income because it became probable that the original forecasted transaction would not occur.

The PNC Financial Services Group, Inc. – Form 10-Q 91

Detail regarding the impact of fair value hedge accounting on the carrying value of the hedged items is presented in the following table.

Table 83: Hedged Items - Fair Value Hedges


	June 30, 2026				December 31, 2025
In millions	Carrying Value of the Hedged Items		Cumulative Fair Value Hedge Adjustment included in the Carrying Value of Hedged Items (a)		Carrying Value of the Hedged Items		Cumulative Fair Value Hedge Adjustment included in the Carrying Value of Hedged Items (a)
Investment securities - available-for-sale (b)	$	18,948	$	(213)	$	22,651	$	174
Borrowed funds	$	39,778	$	(614)	$	39,945	$	(101)
Deposits	$	300	$	—	$	100	$	—

(a)Includes an insignificant amount of fair value hedge adjustments related to discontinued available-for-sale securities and borrowed funds hedge relationships at both June 30, 2026 and December 31, 2025.

(b)Carrying value shown represents amortized cost.

Net Investment Hedges

We enter into foreign currency forward contracts to hedge non-U.S. dollar net investments in foreign subsidiaries against adverse changes in foreign exchange rates. We assess whether the hedging relationship is highly effective in achieving offsetting changes in the value of the hedge and hedged item by qualitatively verifying that the critical terms of the hedge and hedged item match at the inception of the hedging relationship and on an ongoing basis. Net investment hedge derivatives are classified as foreign exchange contracts. There were no components of derivative gains or losses excluded from the assessment of the hedge effectiveness for the periods presented. Net gains (losses) on net investment hedge derivatives recognized in OCI were $(7) million for the three months ended June 30, 2026 compared to $(83) million for the three months ended June 30, 2025 and $20 million for the six months ended June 30, 2026 compared to $(124) million for the same period in 2025.

92 The PNC Financial Services Group, Inc. – Form 10-Q

Derivatives Not Designated as Hedging Instruments

For additional information on derivatives not designated as hedging instruments under GAAP, see Note 15 Financial Derivatives in our 2025 Form 10-K.

Further detail regarding the gains (losses) on derivatives not designated in hedging relationships is presented in the following table.

Table 84: Gains (Losses) on Derivatives Not Designated for Hedging under GAAP


	Three months ended June 30					Six months ended June 30
In millions		2026		2025			2026		2025
Derivatives used for mortgage banking activities:
Interest rate contracts (a)		$	(32)	$	34		$	(50)	$	119
Derivatives used for customer-related activities:
Interest rate contracts		3		6			32		(15)
Foreign exchange contracts and other		50		109			106		177
Gains from customer-related activities (b)		53		115			138		162
Derivatives used for other risk management activities:
Foreign exchange contracts and other (c)		—		(387)			76		(561)
Total gains (losses) from derivatives not designated as hedging instruments		$	21	$	(238)		$	164	$	(280)

(a)Included in Residential and commercial mortgage noninterest income on our Consolidated Income Statement.

(b)Included in Capital markets and advisory and Other noninterest income on our Consolidated Income Statement.

(c)Included in Capital markets and advisory and Other noninterest income and Deposits interest expense on our Consolidated Income Statement.

Offsetting and Counterparty Credit Risk

We generally utilize a net presentation on the Consolidated Balance Sheet for those derivative financial instruments entered into with counterparties under legally enforceable master netting agreements. The master netting agreements reduce credit risk by permitting the closeout netting of all outstanding derivative instruments under the master netting agreement with the same counterparty upon the occurrence of an event of default. The master netting agreement also may require the exchange of cash or marketable securities to collateralize either party’s net position. For additional information on derivative offsetting and counterparty credit risk, see Note 15 Financial Derivatives in our 2025 Form 10-K.

Table 85 shows the impact legally enforceable master netting agreements had on our derivative assets and derivative liabilities at June 30, 2026 and December 31, 2025. The table includes cash collateral held or pledged under legally enforceable master netting agreements. The table also includes the fair value of any securities collateral held or pledged under legally enforceable master netting agreements. Cash and securities collateral amounts are included in the table only to the extent of the related net derivative fair values.

Table 85 includes OTC derivatives not settled through an exchange (“OTC derivatives”) and OTC derivatives cleared through a central clearing house (“OTC cleared derivatives”). OTC derivatives represent contracts executed bilaterally with counterparties that are not settled through an organized exchange or directly cleared through a central clearing house. The majority of OTC derivatives are governed by the ISDA documentation or other legally enforceable master netting agreements. OTC cleared derivatives represent contracts executed bilaterally with counterparties in the OTC market that are novated to a central clearing house that then becomes our counterparty. OTC cleared derivative instruments are typically settled in cash each day based on the prior day value.

The PNC Financial Services Group, Inc. – Form 10-Q 93

Table 85: Derivative Assets and Liabilities Offsetting


In millions			Amounts Offset on the Consolidated Balance Sheet							Securities Collateral Held/Pledged Under Master Netting Agreements
Gross Fair Value	Fair Value Offset Amount		Cash Collateral		Net Fair Value				Net Amounts
June 30, 2026
Derivative assets
Interest rate contracts:
Over-the-counter cleared	$	13	$	—	$	—	$	13		$	—	$	13

Over-the-counter	1,281		618		384		279			14		265
Commodity contracts	677		342		165		170			2		168
Foreign exchange and other contracts	681		154		157		370			1		369
Total derivative assets	$	2,652	$	1,114	$	706	$	832	(a)	$	17	$	815
Derivative liabilities
Interest rate contracts:
Over-the-counter cleared	$	19	$	—	$	—	$	19		$	—	$	19

Over-the-counter	2,745		455		647		1,643			34		1,609
Commodity contracts	654		375		4		275			—		275
Foreign exchange and other contracts	634		284		47		303			—		303
Total derivative liabilities	$	4,052	$	1,114	$	698	$	2,240	(b)	$	34	$	2,206
December 31, 2025
Derivative assets
Interest rate contracts:
Over-the-counter cleared	$	10	$	—	$	—	$	10		$	—	$	10

Over-the-counter	1,608		715		353		540			61		479
Commodity contracts	549		328		96		125			13		112
Foreign exchange and other contracts	505		115		45		345			2		343
Total derivative assets	$	2,672	$	1,158	$	494	$	1,020	(a)	$	76	$	944
Derivative liabilities
Interest rate contracts:
Over-the-counter cleared	$	17	$	—	$	—	$	17		$	—	$	17

Over-the-counter	2,503		615		616		1,272			29		1,243
Commodity contracts	522		305		8		209			—		209
Foreign exchange and other contracts	584		238		119		227			—		227
Total derivative liabilities	$	3,626	$	1,158	$	743	$	1,725	(b)	$	29	$	1,696

(a)Represents the net amount of derivative assets included in Other assets on our Consolidated Balance Sheet.

(b)Represents the net amount of derivative liabilities included in Other liabilities on our Consolidated Balance Sheet.

In addition to using master netting agreements and other collateral agreements to reduce credit risk associated with derivative instruments, we also seek to manage credit risk by evaluating credit ratings of counterparties and by using internal credit analysis, limits and monitoring procedures.

At June 30, 2026, cash and debt securities (primarily agency mortgage-backed securities) totaling $1.8 billion were pledged to us under master netting agreements and other collateral agreements to collateralize net derivative assets due from counterparties and to meet initial margin requirements, and we pledged cash and debt securities (primarily agency mortgage-backed securities) totaling $1.8 billion under these agreements to collateralize net derivative liabilities owed to counterparties and to meet initial margin requirements. These totals may differ from the amounts presented in the preceding offsetting table because these totals may include collateral exchanged under an agreement that does not qualify as a master netting agreement or because the total amount of collateral pledged exceeds the net derivative fair values with the counterparty as of the balance sheet date due to timing or other factors, such as initial margin. To the extent not netted against the derivative fair values under a master netting agreement, the receivable for cash pledged is included in Other assets and the obligation for cash held is included in Other liabilities on our Consolidated Balance Sheet. Securities pledged to us by counterparties are not recognized on our balance sheet. Likewise, securities we have pledged to counterparties remain on our balance sheet.

94 The PNC Financial Services Group, Inc. – Form 10-Q

Credit-Risk Contingent Features

Certain derivative agreements contain various credit-risk-related contingent provisions, such as those that require our debt to maintain a specified credit rating from one or more of the major credit rating agencies. If our debt ratings were to fall below such specified ratings, the counterparties to the derivative instruments could request immediate payment or demand immediate and ongoing full collateralization on derivative instruments in net liability positions. The following table presents the aggregate fair value of derivative instruments with credit-risk-related contingent features, the associated collateral posted in the normal course of business and the maximum amount of collateral we would be required to post if the credit-risk-related contingent features underlying these agreements had been triggered on June 30, 2026 and December 31, 2025.

Table 86: Credit-Risk Contingent Features


In billions	June 30, 2026		December 31, 2025
Net derivative liabilities with credit-risk contingent features	$	2.8	$	2.3
Less: Collateral posted	0.8		0.8
Maximum additional amount of collateral exposure	$	2.0	$	1.5

N****OTE 14 L****EGAL P****ROCEEDINGS

We establish accruals for legal proceedings, including litigation and regulatory and governmental investigations and inquiries, when information related to the loss contingencies represented by those matters indicates both that a loss is probable and that the amount of loss can be reasonably estimated. Any such accruals are adjusted thereafter as appropriate to reflect changed circumstances. When we are able to do so, we also determine estimates of reasonably possible losses or ranges of reasonably possible losses, whether in excess of any related accrued liability or where there is no accrued liability, for disclosed legal proceedings (“Disclosed Matters,” which are those matters disclosed in this Note 14 as well as those matters disclosed in Note 20 Legal Proceedings in our 2025 Form 10-K and in Note 14 Legal Proceedings in our first quarter 2026 Form 10-Q (such prior disclosure referred to as “Prior Disclosure”)). For Disclosed Matters where we are able to estimate such possible losses or ranges of possible losses, as of June 30, 2026, we estimate that it is reasonably possible that we could incur losses in excess of related accrued liabilities, if any, in an aggregate amount less than $300 million. The estimates included in this amount are based on our analysis of currently available information and are subject to significant judgment and a variety of assumptions and uncertainties. As new information is obtained we may change our estimates. Due to the inherent subjectivity of the assessments and unpredictability of outcomes of legal proceedings, any amounts accrued or included in this aggregate amount may not represent the ultimate loss to us from the legal proceedings in question. Thus, our exposure and ultimate losses may be higher, and possibly significantly so, than the amounts accrued or this aggregate amount.

As a result of the types of factors described in Note 20 Legal Proceedings in our 2025 Form 10-K, we are unable, at this time, to estimate the losses that are reasonably possible to be incurred or ranges of such losses with respect to some of the Disclosed Matters, and the aggregate estimated amount provided above does not include an estimate for every Disclosed Matter. Therefore, as the estimated aggregate amount disclosed above does not include all of the Disclosed Matters, the amount disclosed above does not represent our maximum reasonably possible loss exposure for all of the Disclosed Matters. The estimated aggregate amount also does not reflect any of our exposure to matters not so disclosed, as discussed below under “Other.”

We include in some of the descriptions of individual Disclosed Matters certain quantitative information related to the plaintiff’s claim against us as alleged in the plaintiff’s pleadings or other public filings or otherwise publicly available information. While information of this type may provide insight into the potential magnitude of a matter, it does not necessarily represent our estimate of reasonably possible loss or our judgment as to any currently appropriate accrual.

Some of our exposure in Disclosed Matters may be offset by applicable insurance coverage. We do not consider the possible availability of insurance coverage in determining the amounts of any accruals (although we would record the amount of related insurance recoveries that are deemed probable up to the amount of the accrual) or in determining any estimates of possible losses or ranges of possible losses.

Interchange Litigation

In June 2026, the District Court granted preliminary approval of the settlement agreement to resolve the class action seeking equitable relief in the U.S. District Court for the Eastern District of New York under the caption In re Payment Card Interchange Fee and Merchant-Discount Litigation (Master File No. 1:05-md-1720-MKB-JAM). A final approval hearing for the settlement agreement is scheduled for November 2026.

USAA Patent Infringement Litigation

PNC was a defendant in lawsuits filed in the U.S. District Court for the Eastern District of Texas under the captions United Services Automobile Association v. PNC Bank N.A. (Case No. 2:20-cv-319) and United Services Automobile Association v. PNC Bank N.A. (Case No. 2:21-cv-110) (collectively the “first consolidated cases”) and United Services Automobile Association v. PNC Bank N.A. (Case No. 2:21-cv-246) and United Services Automobile Association v. PNC Bank N.A. (Case No. 2:22-cv-193) (collectively the

The PNC Financial Services Group, Inc. – Form 10-Q 95

“second consolidated cases”). The lawsuits alleged that PNC’s mobile remote deposit capture systems infringed on patents owned by USAA.

In June 2025, the United States Court of Appeals for the Federal Circuit reversed the District Court and set aside the verdicts against PNC in both consolidated cases. In January 2026, USAA filed a petition for a writ of certiorari in both consolidated cases to the United States Supreme Court, and on May 18, 2026, the petition for both consolidated cases was denied.

Regulatory and Governmental Inquiries

We are the subject of investigations, audits, examinations and other forms of regulatory and governmental inquiry covering a broad

range of issues in our consumer, mortgage, brokerage, securities and other financial services businesses, as well as other aspects of our operations. In some cases, these inquiries are part of reviews of specified activities at multiple industry participants; in others, they are directed at PNC individually. From time to time, these inquiries have involved and may in the future involve or lead to regulatory enforcement actions and other administrative proceedings. These inquiries have also led to and may in the future lead to civil or criminal judicial proceedings. Some of these inquiries result in remedies including fines, penalties, restitution, or alterations in our business practices, and in additional expenses and collateral costs and other consequences. Such remedies and other consequences typically have not been material to us from a financial standpoint but could be in the future. Even if not financially material, they may result in significant reputational harm or other adverse consequences. Our practice is to cooperate fully with regulatory and governmental investigations, audits and other inquiries.

Other

In addition to the proceedings or other matters described in Prior Disclosure, PNC and persons to whom we may have indemnification obligations, in the normal course of business, are subject to various other pending and threatened legal proceedings in which claims for monetary damages and other relief are asserted. We do not anticipate, at the present time, that the ultimate aggregate liability, if any, arising out of such other legal proceedings will have a material adverse effect on our financial position. However, we cannot now determine whether or not any claims asserted against us or others to whom we may have indemnification obligations, whether in the proceedings or other matters described above or otherwise, will have a material adverse effect on our results of operations in any future reporting period, which will depend on, among other things, the amount of the loss resulting from the claim and the amount of income otherwise reported for the reporting period.

N****OTE 15 S****EGMENT R****EPORTING

We have three reportable business segments: Retail Banking, Corporate & Institutional Banking and the Asset Management Group. Our reportable business segments are defined by the nature of products and services, types of customers, methods used to distribute products or provide services and similar financial performance. Results of our reportable business segments are regularly reviewed by the CODM, our Chief Executive Officer. Specifically, the CODM reviews actual and forecasted quarterly financial reporting results, including net income, to assess performance and allocate resources accordingly. However, the CODM may use other metrics on an ad hoc basis as warranted.

The following describes the products and services of each business segment:

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 acquisition 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:

96 The PNC Financial Services Group, Inc. – Form 10-Q

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.

The remaining corporate operations that do not meet the criteria for disclosure as a separate reportable business segment have been included in Other activities in Table 87 for reconciliation purposes. Other activities include residual activities 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 FTP operations.

Basis of Presentation

Results of individual businesses are presented based on our internal management reporting practices. There is no comprehensive, authoritative body of guidance for management accounting equivalent to GAAP; therefore, the financial results of our individual businesses are not necessarily comparable with similar information for any other company. We periodically refine our internal methodologies as management reporting practices are enhanced. To the extent significant and practicable, retrospective application of new methodologies is made to prior period reportable business segment results and disclosures to create comparability with the current period.

Funds Transfer Pricing

Net interest income in business segment results reflects our internal FTP methodology, which is designed to consider interest rate and liquidity risks. Under our methodology, assets receive a funding charge while liabilities and capital receive a funding credit based on market interest rates, product characteristics and other factors.

Our FTP framework considers the application of funding curves and methodologies consistently across the balance sheet. A residual gain or loss from FTP operations is not allocated to our reportable business segments. This residual gain or loss is reviewed by management quarterly, in accordance with the interagency guidance of the FDIC, Federal Reserve and OCC.

Segment Allocations

Financial results are presented, to the extent practicable, as if each business operated on a standalone basis, and includes expense allocations for corporate overhead services used by the business segments.

Certain costs are not allocated to our reportable business segments because they (i) are transitory or highly irregular in nature, (ii) exist solely to support corporate activities unrelated to business segment operations, or (iii) reflect residual costs for an exited business.

We have allocated the ALLL and the allowance for unfunded lending related commitments based on the loan exposures within each business segment’s portfolio.

The PNC Financial Services Group, Inc. – Form 10-Q 97

Results of our reportable business segments for the three and six months ended June 30, 2026 and 2025 are as follows:

Table 87: Business Segment Results and Reconciliation to Consolidated


Three months ended June 30	Retail Banking				Corporate & Institutional Banking					Asset Management Group
In millions	2026		2025		2026			2025		2026		2025
Net interest income (a)	$	3,290	$	3,012	$	1,972		$	1,791	$	191	$	184
Noninterest income	1,227		782		1,291			1,022		271		244
Total revenue (a)	4,517		3,794		3,263			2,813		462		428
Provision for credit losses	120		83		76			184		(3)		(13)
Noninterest expense
Personnel	551		539		502			370		120		115
Segment allocations (b)	1,090		978		418			381		128		118
Depreciation and amortization	138		87		50			49		11		10
Other (c)	332		286		161			150		30		25
Total noninterest expense	2,111		1,890		1,131			950		289		268
Income before income taxes and noncontrolling interests (a)	2,286		1,821		2,056			1,679		176		173
Income taxes (a)	531		425		463			356		41		41
Net income (a)	1,755		1,396		1,593			1,323		135		132
Less: Net income attributable to noncontrolling interests	8		10		5			5		—		—
Net income excluding noncontrolling interests (a)	$	1,747	$	1,386	$	1,588		$	1,318	$	135	$	132
Average assets	$	130,460	$	114,061	$	263,912		$	234,391	$	15,048	$	14,629


Three months ended June 30					Other activities					Consolidated
In millions					2026			2025		2026		2025
Net interest income (a)					$	(1,346)		$	(1,432)	$	4,107	$	3,555
Noninterest income					(21)		(d)	58		2,768		2,106
Total revenue (a)					(1,367)			(1,374)		6,875		5,661
Provision for credit losses					(2)			—		191		254
Total noninterest expense					567		(e)	275		4,098		3,383
Income before income taxes and noncontrolling interests (a)					(1,932)			(1,649)		2,586		2,024
Income taxes (a)					(504)			(441)		531		381
Net income (a)					(1,428)			(1,208)		2,055		1,643
Less: Net income attributable to noncontrolling interests					2			1		15		16
Net income excluding noncontrolling interests (a)					$	(1,430)		$	(1,209)	$	2,040	$	1,627
Average Assets					$	206,850		$	198,605	$	616,270	$	561,686

98 The PNC Financial Services Group, Inc. – Form 10-Q


(Continued from previous page)
Six months ended June 30	Retail Banking				Corporate & Institutional Banking					Asset Management Group
In millions	2026		2025		2026			2025		2026		2025
Net interest income (a)	$	6,525	$	5,885	$	3,893		$	3,535	$	384	$	362
Noninterest income	1,997		1,488		2,435			2,000		533		487
Total revenue (a)	8,522		7,373		6,328			5,535		917		849
Provision for credit losses	244		251		153			233		2		(12)
Noninterest expense
Personnel	1,122		1,077		962			746		245		236
Segment allocations (b)	2,178		1,945		842			764		255		235
Depreciation and amortization	270		173		96			100		21		18
Other (c)	656		597		307			296		60		58
Total noninterest expense	4,226		3,792		2,207			1,906		581		547
Income before income taxes and noncontrolling interests (a)	4,052		3,330		3,968			3,396		334		314
Income taxes (a)	941		777		890			736		78		74
Net income (a)	3,111		2,553		3,078			2,660		256		240
Less: Net income attributable to noncontrolling interests	15		19		10			9		—		—
Net income excluding noncontrolling interests (a)	$	3,096	$	2,534	$	3,068		$	2,651	$	256	$	240
Average Assets	$	130,537	$	114,601	$	256,890		$	230,750	$	14,927	$	14,556

Six months ended June 30					Other activities					Consolidated
In millions					2026			2025		2026		2025
Net interest income (a)					$	(2,734)		$	(2,751)	$	8,068	$	7,031
Noninterest income					7		(d)	107		4,972		4,082
Total revenue (a)					(2,727)			(2,644)		13,040		11,113
Provision for credit losses					2			1		401		473
Total noninterest expense					852		(e)	525		7,866		6,770
Income before income taxes and noncontrolling interests (a)					(3,581)			(3,170)		4,773		3,870
Income taxes (a)					(963)			(859)		946		728
Net income (a)					(2,618)			(2,311)		3,827		3,142
Less: Net income attributable to noncontrolling interests					2			6		27		34
Net income excluding noncontrolling interests (a)					$	(2,620)		$	(2,317)	$	3,800	$	3,108
Average Assets					$	206,568		$	199,139	$	608,922	$	559,046

(a)During the second quarter of 2026, PNC updated its internal FTP 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.

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

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

(d)Includes a $139 million securities loss related to the repositioning of the available-for-sale investment securities portfolio in the second quarter of 2026.

(e)Includes a $140 million expense related to a PNC Foundation contribution in the second quarter of 2026.

The PNC Financial Services Group, Inc. – Form 10-Q 99

N****OTE **16 FEE-**BASED R****EVENUE FROM C****ONTRACTS WITH C****USTOMERS

As more fully described in Note 23 Fee-based Revenue from Contracts with Customers in our 2025 Form 10-K, a subset of our noninterest income relates to certain fee-based revenue within the scope of ASC Topic 606 - Revenue from Contracts with Customers (Topic 606).

Fee-based revenue within the scope of Topic 606 is recognized within our three reportable business segments: Retail Banking, Corporate & Institutional Banking and the Asset Management Group. Interest income, income from lease contracts, fair value gains from financial instruments (including derivatives), income from mortgage servicing rights and guarantee products, letter of credit fees, non-refundable fees associated with acquiring or originating a loan and gains from the sale of financial assets are outside of the scope of Topic 606.

Table 88 presents the noninterest income recognized within the scope of Topic 606 for each of our three reportable business segments’ principal products and services, along with the relationship to the noninterest income revenue streams reported on our Consolidated Income Statement. For a description of the fee-based revenue and how it is recognized for each segment’s principal products and services, see Note 23 Fee-based Revenue from Contracts with Customers in our 2025 Form 10-K.

Table 88: Noninterest Income by Business Segment and Reconciliation to Consolidated Noninterest Income


	2026						2025
Three months ended June 30 In millions	Retail Banking		Corporate & Institutional Banking		Asset Management Group		Retail Banking		Corporate & Institutional Banking		Asset Management Group
Asset management and brokerage
Asset management fees	$	—	$	—	$	268	$	—	$	—	$	241
Brokerage fees	172		—		—		150		—		—
Total asset management and brokerage	172		—		268		150		—		241
Card and cash management
Treasury management fees	12		416		—		11		404		—
Debit card fees	200		—		—		182		—		—
Net credit card fees (a)	55		—		—		50		—		—
Merchant services	37		19		—		42		18		—
Other	19		—		—		20		—		—
Total card and cash management	323		435		—		305		422		—
Lending and deposit services
Deposit account fees	180		—		—		165		—		—
Other	17		8		—		19		8		—
Total lending and deposit services	197		8		—		184		8		—
Residential and commercial mortgage (b)	—		26		—		—		27		—
Capital markets and advisory	—		424		—		—		216		—
Other	—		28		—		—		18		—
Total in-scope noninterest income	692		921		268		639		691		241
Out-of-scope noninterest income (c)	535		370		3		143		331		3
Noninterest income by business segment	$	1,227	$	1,291	$	271	$	782	$	1,022	$	244
Reconciliation to consolidated noninterest income
Total in-scope business segment noninterest income					$	1,881					$	1,571
Out-of-scope business segment noninterest income (c)					908						477
Noninterest income from other activities (d)					(21)						58
Noninterest income as reported on the Consolidated Income Statement					$	2,768					$	2,106

100 The PNC Financial Services Group, Inc. – Form 10-Q



(Continued from previous page)	2026						2025
Six months ended June 30 In millions	Retail Banking		Corporate & Institutional Banking		Asset Management Group		Retail Banking		Corporate & Institutional Banking		Asset Management Group
Asset management and brokerage
Asset management fees	$	—	$	—	$	527	$	—	$	—	$	480
Brokerage fees	333		—		—		302		—		—
Total asset management and brokerage	333		—		527		302		—		480
Card and cash management
Treasury management fees	22		824		—		21		794		—
Debit card fees	386		—		—		351		—		—
Net credit card fees (a)	107		—		—		91		—		—
Merchant services	68		38		—		77		35		—
Other	38		—		—		40		—		—
Total card and cash management	621		862		—		580		829		—
Lending and deposit services
Deposit account fees	357		—		—		326		—		—
Other	33		15		—		36		15		—
Total lending and deposit services	390		15		—		362		15		—
Residential and commercial mortgage (b)	—		58		—		—		56		—
Capital markets and advisory	—		733		—		—		433		—
Other	—		46		—		—		29		—
Total in-scope noninterest income	1,344		1,714		527		1,244		1,362		480
Out-of-scope noninterest income (c)	653		721		6		244		638		7
Noninterest income by business segment	$	1,997	$	2,435	$	533	$	1,488	$	2,000	$	487
Reconciliation to consolidated noninterest income
Total in-scope business segment noninterest income					$	3,585					$	3,086
Out-of-scope business segment noninterest income (c)					1,380						889
Noninterest income from other activities (d)					7						107
Noninterest income as reported on the Consolidated Income Statement					$	4,972					$	4,082

(a)Net credit card fees consist of interchange fees of $196 million and $177 million and credit card reward costs of $141 million and $127 million for the three months ended June 30, 2026 and 2025, respectively. Net credit card fees consist of interchange fees of $372 million and $339 million and credit card reward costs of $265 million and $248 million for the six months ended June 30, 2026 and 2025, respectively.

(b)Residential mortgage noninterest income falls under the scope of other accounting and disclosure requirements outside of Topic 606 and is included within the out-of-scope noninterest income line for the Retail Banking segment.

(c)Out-of-scope noninterest income includes revenue streams that fall under the scope of other accounting and disclosure requirements outside of Topic 606.

(d)Includes residual activities from corporate operations. For additional information, see Note 15 Segment Reporting.

N****OTE 17 S****UBSEQUENT E****VENTS

On July 21, 2026, the parent company issued $1.0 billion of 5.463% senior fixed-to-floating rate notes with a maturity date of July 21, 2037 (the “2037 Fixed-to-Floating Senior Notes”). Interest is payable on the 2037 Fixed-to-Floating Senior Notes semi-annually in arrears at a fixed rate of 5.463% per annum, on January 21 and July 21 of each year, commencing on January 21, 2027. Beginning on July 21, 2036, interest is payable on the 2037 Fixed-to-Floating Senior Notes quarterly in arrears at a floating rate per annum equal to Compounded SOFR (determined with respect to each quarterly interest period using the SOFR Index as described in the Pricing Supplement), plus 1.267%, on October 21, 2036, January 21, 2037, April 21, 2037 and at the maturity date.

On July 21, 2026, the parent company issued $1.0 billion of 4.831% senior fixed-to-floating rate notes with a maturity date of July 19, 2030 (the “2030 Fixed-to-Floating Senior Notes”). Interest is payable on the 2030 Fixed-to-Floating Senior Notes semi-annually in arrears at a fixed rate of 4.831% per annum, on January 19 and July 19 of each year, commencing on January 19, 2027. Beginning on July 19, 2029, interest is payable on the 2030 Fixed-to-Floating Senior Notes quarterly in arrears at a floating rate per annum equal to Compounded SOFR (determined with respect to each quarter interest period using the SOFR Index as described in the Pricing Supplement), plus 0.798%, on October 19, 2029, January 19, 2030, April 19, 2030 and at the maturity date.

On July 23, 2026, the parent company redeemed all of the outstanding 5.102% senior fixed-to-floating notes due July 23, 2027 issued by the parent company in the amount of $1.0 billion. The redemption price was equal to 100% of the principal amount, plus any accrued and unpaid interest to the redemption date of July 23, 2026.

The PNC Financial Services Group, Inc. – Form 10-Q 101

G****LOSSARY

D****EFINED T****ERMS

For a glossary of terms commonly used in our filings, please see the glossary of terms included in our 2025 Form 10-K.

A****CRONYMS


ACL	Allowance for credit losses	ISDA	International Swaps and Derivatives Association
AI	Artificial intelligence	LCR	Liquidity coverage ratio
ALCO	Asset and Liability Committee	LGD	Loss given default
ALLL	Allowance for loan and lease losses	LIHTC	Low income housing tax credit
AOCI	Accumulated other comprehensive income	LLC	Limited liability company
ASC	Accounting Standards Codification	LTV	Loan-to-value ratio
ASU	Accounting Standards Update	MSR	Mortgage servicing right
BHC	Bank holding company	NII	Net interest income
bps	Basis points	NMTC	New market tax credit
CCAR	Comprehensive Capital Analysis and Review	NSFR	Net stable funding ratio
CECL	Current Expected Credit Losses	OCC	Office of the Comptroller of the Currency
CET1	Common equity tier 1	OCI	Other comprehensive income
CODM	Chief operating decision maker	OREO	Other real estate owned
CPI	Consumer Price Index	OTC	Over-the-counter
CRA	Community Reinvestment Act	PAM	Proportional amortization method
EVE	Economic value of equity	PCD	Purchased credit deteriorated
FDIC	Federal Deposit Insurance Corporation	PD	Probability of default
FDM	Financial difficulty modification	PSL	Purchased Seasoned Loan
FHLB	Federal Home Loan Bank	ROAP	Removal of account provisions
FHLMC	Federal Home Loan Mortgage Corporation	SCB	Stress capital buffer
FICO	Fair Isaac Corporation (credit score)	SEC	Securities and Exchange Commission
FNMA	Federal National Mortgage Association	S&P	Standard & Poor’s
FRB	Federal Reserve Bank	SOFR	Secured Overnight Financing Rate
FTP	Funds transfer pricing	SPE	Special purpose entity
GAAP	Accounting principles generally accepted in the United States of America	U.S.	United States of America
GDP	Gross domestic product	VaR	Value-at-risk
GNMA	Government National Mortgage Association	VIE	Variable interest entity

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

See the information set forth in Note 14 Legal Proceedings, which is incorporated by reference in response to this item.

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