EX-99.2 3 q32022financialsupplement.htm EX-99.2 Document


Exhibit 99.2

pncbanklogoa18.jpg



THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT
THIRD QUARTER 2022
(Unaudited)



THE PNC FINANCIAL SERVICES GROUP, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2022
(UNAUDITED)

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on October 14, 2022. We have reclassified certain prior period amounts to be consistent with the current period presentation, which we believe is more meaningful to readers of our consolidated financial statements. This information speaks only as of the particular date or dates included in the schedules. We do not undertake any obligation to, and disclaim any duty to, correct or update any of the information provided in this Financial Supplement. Our future financial performance is subject to risks and uncertainties as described in our United States Securities and Exchange Commission (SEC) filings.

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

PRESENTATION OF NONINTEREST INCOME
Effective for the first quarter of 2022, PNC updated the presentation of its noninterest income categorization to be based on product and service type, and accordingly, has changed the basis of presentation of its noninterest income revenue streams to: (i) Asset management and brokerage, (ii) Capital markets related, (iii) Card and cash management, (iv) Lending and deposit services, (v) Residential and commercial mortgage and (vi) Other noninterest income. For a description of each updated noninterest income revenue stream, see our second quarter 2022 Form 10-Q.

ACQUISITION OF BBVA USA BANCSHARES, INC.
On June 1, 2021, PNC acquired BBVA USA Bancshares Inc. (BBVA), a U.S. financial holding company conducting its business operations primarily through its U.S. banking subsidiary, BBVA USA. PNC paid $11.5 billion in cash as consideration for the acquisition.

On October 8, 2021, BBVA USA merged into PNC Bank. As of October 12, 2021, PNC converted approximately 2.6 million
customers, 9,000 employees and over 600 branches across seven states. Our results of operations and balance sheets for all periods presented in this Report reflect the benefit of BBVA’s acquired businesses for the period since the acquisition closed on June 1, 2021.





THE PNC FINANCIAL SERVICES GROUP, INC.
Cross Reference Index to Third Quarter 2022 Financial Supplement (Unaudited)
Financial Supplement Table Reference
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THE PNC FINANCIAL SERVICES GROUP, INC.

Page 1

Table 1: Consolidated Income Statement (Unaudited)
Three months endedNine months ended
September 30June 30March 31December 31September 30September 30September 30
In millions, except per share data2022202220222021202120222021
Interest Income
Loans$3,138 $2,504 $2,293 $2,414 $2,437 $7,935 $6,593 
Investment securities715 631 544 484 460 1,890 1,350 
Other279 146 77 77 78 502 216 
Total interest income4,132 3,281 2,914 2,975 2,975 10,327 8,159 
Interest Expense
Deposits340 88 27 27 29 455 99 
Borrowed funds317 142 83 86 90 542 275 
Total interest expense657 230 110 113 119 997 374 
Net interest income3,475 3,051 2,804 2,862 2,856 9,330 7,785 
Noninterest Income
Asset management and brokerage357 365 377 385 375 1,099 1,053 
Capital markets related299 409 252 460 482 960 1,117 
Card and cash management671 671 620 646 663 1,962 1,752 
Lending and deposit services287 282 269 273 305 838 829 
Residential and commercial mortgage143 161 159 209 248 463 641 
Other (a)317 177 211 292 268 705 907 
Total noninterest income2,074 2,065 1,888 2,265 2,341 6,027 6,299 
Total revenue5,549 5,116 4,692 5,127 5,197 15,357 14,084 
Provision For (Recapture of) Credit Losses241 36 (208)(327)(203)69 (452)
Noninterest Expense
Personnel1,805 1,779 1,717 2,038 1,986 5,301 5,103 
Occupancy241 246 258 260 248 745 680 
Equipment344 351 331 437 355 1,026 974 
Marketing93 95 61 97 103 249 222 
Other797 773 805 959 895 2,375 2,232 
Total noninterest expense3,280 3,244 3,172 3,791 3,587 9,696 9,211 
Income before income taxes and noncontrolling interests2,028 1,836 1,728 1,663 1,813 5,592 5,325 
Income taxes388 340 299 357 323 1,027 906 
Net income1,640 1,496 1,429 1,306 1,490 4,565 4,419 
Less: Net income attributable to noncontrolling interests16 15 21 13 16 52 38 
Preferred stock dividends (b)65 71 45 71 57 181 162 
Preferred stock discount accretion and
    redemptions		1 1 2 2 1 4 3 
Net income attributable to common shareholders$1,558 $1,409 $1,361 $1,220 $1,416 $4,328 $4,216 
Earnings Per Common Share
Basic$3.78 $3.39 $3.23 $2.87 $3.31 $10.39 $9.84 
Diluted$3.78 $3.39 $3.23 $2.86 $3.30 $10.39 $9.83 
Average Common Shares Outstanding
Basic410 414 420 424 426 414 426 
Diluted410 414 420 424 426 415 427 
Efficiency59 %63 %68 %74 %69 %63 %65 %
Noninterest income to total revenue37 %40 %40 %44 %45 %39 %45 %
Effective tax rate from continuing operations (c)19.1 %18.5 %17.3 %21.5 %17.8 %18.4 %17.0 %
(a)Includes net gains (losses) on sales of securities of less than $1 million, less than $(1) million, $(4) million, $14 million and $15 million for the quarters ended September 30, 2022, June 30, 2022, March 31, 2022, December 31, 2021 and September 30, 2021, respectively, and $(4) million and $50 million for the nine months ended September 30, 2022 and September 30, 2021, respectively.
(b)Dividends are payable quarterly other than Series R and Series S preferred stock, which are payable semiannually.
(c)The effective income tax rates are generally lower than the statutory rate due to the relationship of pretax income to tax credits and earnings that are not subject to tax.












THE PNC FINANCIAL SERVICES GROUP, INC.

Page 2
Table 2: Consolidated Balance Sheet (Unaudited)
September 30June 30March 31December 31September 30
In millions, except par value20222022202220212021
Assets
Cash and due from banks$6,548 $8,582 $7,572 $8,004 $8,843 
Interest-earning deposits with banks (a)40,278 28,404 48,776 74,250 75,478 
Loans held for sale (b)1,126 1,191 1,506 2,231 2,121 
Investment securities – available for sale 45,798 52,984 112,313 131,536 124,127 
Investment securities – held to maturity90,653 79,748 20,098 1,426 1,479 
Loans (b)315,400 310,800 294,457 288,372 290,230 
Allowance for loan and lease losses (4,581)(4,462)(4,558)(4,868)(5,355)
Net loans310,819 306,338 289,899 283,504 284,875 
Equity investments8,130 8,441 7,798 8,180 7,737 
Mortgage servicing rights3,206 2,608 2,208 1,818 1,833 
Goodwill10,987 10,916 10,916 10,916 10,885 
Other (b) 41,932 41,574 40,160 35,326 36,137 
Total assets$559,477 $540,786 $541,246 $557,191 $553,515 
Liabilities
Deposits
Noninterest-bearing$138,423 $146,438 $150,798 $155,175 $156,305 
Interest-bearing299,771 294,373 299,399 302,103 292,597 
Total deposits438,194 440,811 450,197 457,278 448,902 
Borrowed funds
Federal Home Loan Bank borrowings30,075 10,000 
Bank notes and senior debt13,357 14,358 16,206 20,661 22,993 
Subordinated debt7,286 7,487 6,766 6,996 7,074 
Other (b)3,915 4,139 3,599 3,127 3,404 
Total borrowed funds54,633 35,984 26,571 30,784 33,471 
Allowance for unfunded lending related commitments 682 681 639 662 646 
Accrued expenses and other liabilities19,245 15,622 14,623 12,741 14,199 
Total liabilities512,754 493,098 492,030 501,465 497,218 
Equity
Preferred stock (c)
Common stock - $5 par value
Authorized 800 shares, issued 543 shares2,714 2,714 2,713 2,713 2,713 
Capital surplus19,810 18,531 17,487 17,457 17,453 
Retained earnings52,777 51,841 51,058 50,228 49,541 
Accumulated other comprehensive income (loss)(10,486)(8,358)(5,731)409 1,079 
Common stock held in treasury at cost: 139, 132, 128, 123, and 120 shares(18,127)(17,076)(16,346)(15,112)(14,527)
Total shareholders’ equity46,688 47,652 49,181 55,695 56,259 
Noncontrolling interests35 36 35 31 38 
Total equity46,723 47,688 49,216 55,726 56,297 
Total liabilities and equity$559,477 $540,786 $541,246 $557,191 $553,515 
(a)Amounts include balances held with the Federal Reserve Bank of $39.8 billion, $28.0 billion, $48.4 billion, $73.8 billion and $75.1 billion as of September 30, 2022, June 30, 2022, March 31, 2022, December 31, 2021 and September 30, 2021, respectively.
(b)Amounts include assets and liabilities for which PNC has elected the fair value option. Our second quarter 2022 Form 10-Q included, and our third quarter 2022 Form 10-Q will include, additional information regarding these items.
(c)Par value less than $0.5 million at each date.



THE PNC FINANCIAL SERVICES GROUP, INC.

Page 3
Table 3: Average Consolidated Balance Sheet (Unaudited) (a) (b)
Three months endedNine months ended
September 30June 30March 31December 31September 30September 30September 30
In millions2022202220222021202120222021
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency$32,500 $37,285 $67,498 $64,521 $63,163 $45,633 $54,900 
Non-agency748 9021,0079741,0518851,142 
Commercial mortgage-backed3,489 4,3625,2295,5386,1344,3546,280 
Asset-backed1102,3886,2256,2065,6082,8855,590 
U.S. Treasury and government agencies11,78917,48047,46844,41538,14925,44831,017 
Other3,5064,2004,8764,7414,9944,1894,889 
Total securities available for sale52,14266,617132,303126,395119,09983,394103,818
Securities held to maturity
Residential mortgage-backed39,329 33,086 106 24,317 
Commercial mortgage-backed2,069 1,175 1,089 
Asset-backed6,571 4,119 3,587
U.S. Treasury and government agencies34,27928,167 91981280721,243802 
Other2,6001,5605696426801,585667 
Total securities held to maturity84,84868,1071,5941,4541,48751,8211,469
Total investment securities136,990134,724133,897127,849120,586135,215105,287
Loans
Commercial and industrial172,788166,968155,481152,355152,964165,142140,368 
Commercial real estate35,14034,46734,00435,25637,05434,54132,452 
Equipment lease financing6,2026,2006,0996,1836,3006,1686,321 
Consumer54,56354,55154,96556,24457,53354,69253,695 
Residential real estate44,33342,60440,15238,87237,47542,37829,048 
Total loans313,026304,790290,701288,910291,326302,921261,884
Interest-earning deposits with banks (c)31,89239,68962,54075,37780,27444,64181,383 
Other interest-earning assets9,5609,9359,4179,1139,1139,6378,345 
Total interest-earning assets491,468489,138496,555501,249501,299492,414456,899
Noninterest-earning assets55,62957,74053,54158,12357,94356,02954,065 
Total assets$547,097 $546,878 $550,096 $559,372 $559,242 $548,443 $510,964 
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market$60,934 $58,019 $62,596 $65,214 $82,911 $60,510 $69,105 
Demand120,358119,636112,372108,345106,588117,48599,154 
Savings106,761109,063108,532104,64489,679108,11286,662 
Time deposits10,02010,37816,04318,02919,29312,12518,577 
Total interest-bearing deposits298,073297,096299,543296,232298,471298,232273,498
Borrowed funds
Federal Home Loan Bank borrowings16,7086,9787,957883 
Bank notes and senior debt14,59716,17218,01521,58122,57316,24922,663 
Subordinated debt7,6146,9986,7736,7796,7877,1316,315 
Other5,3425,5085,5245,9874,9925,4574,701 
Total borrowed funds44,26135,65630,31234,34734,35236,79434,562
Total interest-bearing liabilities342,334332,752329,855330,579332,823335,026308,060
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits141,167149,432153,726156,549155,948148,062133,999 
Accrued expenses and other liabilities15,69917,11614,05816,81815,33216,06114,787 
Equity47,89747,57852,45755,42655,13949,29454,118 
Total liabilities and equity$547,097 $546,878 $550,096 $559,372 $559,242 $548,443 $510,964 
(a)Calculated using average daily balances.
(b)Nonaccrual loans are included in loans, net of unearned income. The impact of financial derivatives used in interest rate risk management is included in the interest income/expense and average yields/rates of the related assets and liabilities. Basis adjustments related to hedged items are included in noninterest-earning assets and noninterest-bearing liabilities. Average balances of securities are based on amortized historical cost (excluding adjustments to fair value, which are included in other assets). Average balances for certain loans and borrowed funds accounted for at fair value are included in noninterest-earning assets and noninterest-bearing liabilities, with changes in fair value recorded in Noninterest income.
(c)Amounts include average balances held with the Federal Reserve Bank of $31.5 billion, $39.3 billion, $62.3 billion, $75.1 billion and $80.1 billion for the three months ended September 30, 2022, June 30, 2022, March 31, 2022, December 31, 2021 and September 30, 2021, and $44.2 billion and $81.1 billion for the nine months ended September 30, 2022 and September 30, 2021, respectively.

THE PNC FINANCIAL SERVICES GROUP, INC.

Page 4
Table 4: Details of Net Interest Margin (Unaudited)
Three months endedNine months ended
September 30June 30March 31December 31September 30September 30September 30
2022202220222021202120222021
Average yields/rates (a)
Yield on interest-earning assets
Investment securities
Securities available for sale
Residential mortgage-backed
Agency2.36 %2.17 %1.73 %1.47 %1.41 %2.01 %1.56 %
Non-agency7.62 %7.56 %7.53 %7.36 %8.07 %7.57 %7.70 %
Commercial mortgage-backed2.70 %2.45 %2.36 %2.37 %2.34 %2.49 %2.47 %
Asset-backed6.31 %1.84 %1.35 %1.48 %1.50 %1.56 %1.80 %
U.S. Treasury and government agencies1.73 %1.60 %1.18 %1.17 %1.18 %1.36 %1.34 %
Other2.47 %2.59 %2.73 %2.77 %2.90 %2.61 %3.05 %
Total securities available for sale2.33 %2.13 %1.62 %1.50 %1.51 %1.91 %1.70 %
Securities held to maturity
Residential mortgage-backed2.30 %1.98 %2.14 %
Commercial mortgage-backed3.50 %2.30 %3.04 %
Asset-backed2.58 %1.92 %2.31 %
U.S. Treasury and government agencies1.19 %1.05 %2.61 %2.89 %2.88 %1.14 %2.86 %
Other4.10 %4.21 %4.17 %4.20 %4.33 %4.12 %4.05 %
Total securities held to maturity1.96 %1.65 %2.99 %3.47 %3.54 %1.82 %3.40 %
Total investment securities2.10 %1.89 %1.64 %1.52 %1.54 %1.88 %1.73 %
Loans
Commercial and industrial3.69 %2.90 %2.75 %2.90 %2.80 %3.14 %2.87 %
Commercial real estate4.27 %3.15 %2.79 %2.86 %3.17 %3.44 %2.98 %
Equipment lease financing3.85 %3.62 %3.74 %3.81 %3.83 %3.73 %3.83 %
Consumer5.32 %4.68 %4.69 %4.71 %4.85 %4.89 %4.82 %
Residential real estate3.21 %3.11 %3.10 %3.26 %3.15 %3.12 %3.35 %
Total loans3.98 %3.29 %3.19 %3.32 %3.32 %3.50 %3.36 %
Interest-earning deposits with banks2.32 %0.79 %0.19 %0.15 %0.16 %0.87 %0.12 %
Other interest-earning assets3.94 %2.76 %2.07 %2.14 %2.03 %2.92 %2.27 %
Total yield on interest-earning assets3.35 %2.69 %2.37 %2.36 %2.36 %2.80 %2.38 %
Rate on interest-bearing liabilities
Interest-bearing deposits
Money market0.85 %0.19 %0.03 %0.02 %0.03 %0.36 %0.03 %
Demand0.59 %0.15 %0.02 %0.02 %0.03 %0.26 %0.03 %
Savings0.09 %0.04 %0.04 %0.04 %0.04 %0.06 %0.05 %
Time deposits0.26 %0.18 %0.13 %0.11 %0.12 %0.18 %0.21 %
Total interest-bearing deposits0.45 %0.12 %0.04 %0.04 %0.04 %0.20 %0.05 %
Borrowed funds
Federal Home Loan Bank borrowings2.60 %1.24 %2.20 %0.42 %
Bank notes and senior debt2.96 %1.61 %1.02 %0.94 %0.97 %1.80 %1.00 %
Subordinated debt3.43 %1.94 %1.40 %1.28 %1.28 %2.30 %1.35 %
Other
2.20 %1.46 %0.97 %0.79 %0.93 %1.54 %1.02 %
Total borrowed funds2.81 %1.58 %1.10 %0.98 %1.03 %1.95 %1.05 %
Total rate on interest-bearing liabilities0.75 %0.27 %0.13 %0.13 %0.14 %0.39 %0.16 %
Interest rate spread2.60 %2.42 %2.24 %2.23 %2.22 %2.41 %2.22 %
Benefit from use of noninterest-bearing sources (b)0.22 %0.08 %0.04 %0.04 %0.05 %0.13 %0.06 %
Net interest margin2.82 %2.50 %2.28 %2.27 %2.27 %2.54 %2.28 %
(a)Yields and rates are calculated using the applicable annualized interest income or interest expense divided by the applicable average earning assets or interest-bearing liabilities. Net interest margin is the total yield on interest-earning assets minus the total rate on interest-bearing liabilities and includes the benefit from use of noninterest-bearing sources. To provide more meaningful comparisons of net interest margins, we use net interest income on a taxable-equivalent basis in calculating average yields used in the calculation of net interest margin by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under GAAP in the Consolidated Income Statement. The taxable-equivalent adjustments to net interest income for the three months ended September 30, 2022, June 30, 2022, March 31, 2022, December 31, 2021 and September 30, 2021 were $29 million, $25 million, $22 million, $22 million and $22 million, respectively. The taxable-equivalent adjustments to net interest income for the nine months ended September 30, 2022 and September 30, 2021 were $76 million and $52 million, respectively.
(b)Represents the positive effects of investing noninterest-bearing sources in interest-earning assets.


THE PNC FINANCIAL SERVICES GROUP, INC.

Page 5
Table 5: Details of Loans (Unaudited)
September 30June 30March 31December 31September 30
In millions20222022202220212021
Commercial
Commercial and industrial
Manufacturing$28,629 $27,179 $25,035 $22,597 $22,760 
Retail/wholesale trade27,53226,47525,02722,80322,238
Service providers22,04321,18420,58420,75020,969
Financial services21,59019,59417,67417,95018,022
Real estate related (a)17,51316,17915,45915,12314,809
Technology, media & telecommunications11,36616,24910,68410,0708,920
Health care10,42010,1539,8109,94410,567
Transportation and warehousing7,9777,6047,2097,1367,318
Other industries26,74327,21426,39226,56027,132
Total commercial and industrial173,813 171,831 157,874 152,933 152,735 
Commercial real estate35,592 34,452 34,171 34,015 36,195 
Equipment lease financing6,192 6,240 6,216 6,130 6,257 
Total commercial215,597212,523198,261193,078195,187
Consumer
Residential real estate45,057 43,717 41,566 39,712 38,214 
Home equity25,367 24,693 24,185 24,061 24,479 
Automobile15,025 15,323 16,001 16,635 17,265 
Credit card6,774 6,650 6,464 6,626 6,466 
Education2,287 2,332 2,441 2,533 2,653 
Other consumer5,293 5,562 5,539 5,727 5,966 
Total consumer99,803 98,277 96,196 95,294 95,043 
Total loans$315,400 $310,800 $294,457 $288,372 $290,230 
(a)Represents loans to customers in the real estate and construction industries.


THE PNC FINANCIAL SERVICES GROUP, INC.

Page 6
Allowance for Credit Losses (Unaudited)

Table 6: Change in Allowance for Loan and Lease Losses
Three months endedNine months ended
September 30June 30March 31December 31September 30September 30September 30
Dollars in millions2022202220222021202120222021
Allowance for loan and lease losses
Beginning balance$4,462 $4,558 $4,868 $5,355 $5,730 $4,868 $5,361 
Acquisition PCD reserves(59)1,056 
Gross charge-offs:
Commercial and industrial(65)(30)(41)(35)(46)(136)(350)
Commercial real estate(7)(5)(10)(2)(1)(22)(34)
Equipment lease financing(1)(2)(1)(4)(3)(4)(9)
Residential real estate(2)(7)(4)(4)(9)(11)
Home equity(3)(2)(4)(4)(2)(9)(16)
Automobile(32)(34)(52)(49)(33)(118)(120)
Credit card(59)(67)(68)(60)(62)(194)(196)
Education(4)(4)(4)(4)(3)(12)(11)
Other consumer(49)(51)(64)(62)(52)(164)(130)
Total gross charge-offs(222)(195)(251)(224)(206)(668)(877)
Recoveries:
Commercial and industrial23 15 30 20 25 68 68 
Commercial real estate1 1 1 2 2 3 5 
Equipment lease financing1 3 3 3 2 7 8 
Residential real estate4 6 5 8 9 15 20 
Home equity19 18 21 23 25 58 63 
Automobile30 39 31 26 38 100 117 
Credit card12 19 12 10 13 43 36 
Education1 2 1 2 2 4 6 
Other consumer12 9 10 6 9 31 21 
Total recoveries103 112 114 100 125 329 344 
Net (charge-offs) / recoveries:
Commercial and industrial(42)(15)(11)(15)(21)(68)(282)
Commercial real estate(6)(4)(9)1 (19)(29)
Equipment lease financing1 2 (1)(1)3 (1)
Residential real estate2 6 (2)4 5 6 9 
Home equity16 16 17 19 23 49 47 
Automobile(2)5 (21)(23)5 (18)(3)
Credit card(47)(48)(56)(50)(49)(151)(160)
Education(3)(2)(3)(2)(1)(8)(5)
Other consumer(37)(42)(54)(56)(43)(133)(109)
Total net (charge-offs) (a)(119)(83)(137)(124)(81)(339)(533)
Provision for (recapture of) credit losses (b)241 (10)(172)(362)(229)59 (525)
Other(3)(3)(1)(1)(6)(7)(4)
Ending balance$4,581 $4,462 $4,558 $4,868 $5,355 $4,581 $5,355 
Supplemental Information
Net charge-offs
Commercial net charge-offs$(48)$(18)$(18)$(16)$(21)$(84)$(312)
Consumer net charge-offs(71)(65)(119)(108)(60)(255)(221)
Total net charge-offs (a)$(119)$(83)$(137)$(124)$(81)$(339)$(533)
Net charge-offs to average loans (annualized)0.15 %0.11 %0.19 %0.17 %0.11 %0.15 %0.27 %
Commercial0.09 %0.03 %0.04 %0.03 %0.04 %0.05 %0.23 %
Consumer0.28 %0.27 %0.51 %0.45 %0.25 %0.35 %0.36 %
(a)    Amounts for the three months ended June 30, 2021 included $248 million attributable to BBVA, primarily related to commercial and industrial loans, which were largely the result of required purchase accounting treatment for the BBVA acquisition on June 1, 2021.
(b)    See Table 7 for the components of the Provision for (recapture of) credit losses being reported on the Consolidated Income Statement.


THE PNC FINANCIAL SERVICES GROUP, INC.

Page 7
Allowance for Credit Losses (Unaudited) (Continued)

Table 7: Components of the Provision for (Recapture of) Credit Losses
Three months endedNine months ended
September 30June 30March 31December 31September 30September 30September 30
In millions20222022202220212021 20222021 (a)
Provision for (recapture of) credit losses
Loans and leases$241 $(10)$(172)$(362)$(229)$59 $(525)
Unfunded lending related commitments1 42 (23)16 1 20 16 
Investment securities 3 3 1 25 7 51 
Other financial assets(4)1 (14)19 (17)6 
Total provision for (recapture of) credit losses$241 $36 $(208)$(327)$(203)$69 $(452)
(a)     Amounts include $1.0 billion of provision for credit losses that was recorded as part of the BBVA acquisition on June 1, 2021.

Table 8: Allowance for Credit Losses by Loan Class (a)
September 30, 2022June 30, 2022September 30, 2021

Dollars in millions		Allowance AmountTotal Loans% of Total LoansAllowance AmountTotal Loans% of Total LoansAllowance AmountTotal Loans% of Total Loans
Allowance for loan and lease losses
Commercial
Commercial and industrial$1,974 $173,813 1.14 %$1,853 $171,831 1.08 %$2,173 $152,735 1.42 %
Commercial real estate994 35,592 2.79 %993 34,452 2.88 %1,312 36,195 3.62 %
Equipment lease financing93 6,192 1.50 %91 6,240 1.46 %118 6,257 1.89 %
Total commercial3,061 215,597 1.42 %2,937 212,523 1.38 %3,603 195,187 1.85 %
Consumer
Residential real estate50 45,057 0.11 %36 43,717 0.08 %42 38,214 0.11 %
Home equity215 25,367 0.85 %190 24,693 0.77 %167 24,479 0.68 %
Automobile214 15,025 1.42 %254 15,323 1.66 %365 17,265 2.11 %
Credit card732 6,774 10.81 %715 6,650 10.75 %701 6,466 10.84 %
Education64 2,287 2.80 %63 2,332 2.70 %81 2,653 3.05 %
Other consumer245 5,293 4.63 %267 5,562 4.80 %396 5,966 6.64 %
Total consumer1,520 99,803 1.52 %1,525 98,277 1.55 %1,752 95,043 1.84 %
Total
4,581 $315,400 1.45 %4,462 $310,800 1.44 %5,355 $290,230 1.85 %
Allowance for unfunded lending related commitments
682 681 646 
Allowance for credit losses
$5,263 $5,143 $6,001 
Supplemental Information
Allowance for credit losses to total loans
1.67 %1.65 %2.07 %
Commercial1.70 %1.68 %2.12 %
Consumer1.60 %1.60 %1.96 %
(a)     Excludes allowances for investment securities and other financial assets, which together totaled $162 million, $163 million and $162 million at September 30, 2022, June 30, 2022 and September 30, 2021, respectively.

THE PNC FINANCIAL SERVICES GROUP, INC.

Page 8
Details of Nonperforming Assets (Unaudited)

Table 9: Nonperforming Assets by Type
September 30June 30March 31December 31September 30
Dollars in millions20222022202220212021
Nonperforming loans, including TDRs
Commercial
Commercial and industrial
Service providers$223 $151 $173 $188 $220 
Retail/wholesale trade158 87 59 50 59 
Manufacturing88 101 70 52 62 
Real estate related (a)47 59 39 64 49 
Health care45 54 37 46 56 
Transportation and warehousing29 30 28 18 21 
Technology, media & telecommunications20 21 36 33 37 
Other industries138 146 218 345 325 
Total commercial and industrial748 649 660 796 829 
Commercial real estate148 161 332 364 365 
Equipment lease financing7 5 6 8 10 
Total commercial903 815 998 1,168 1,204 
Consumer (b)
Residential real estate 429 457 526 517 533 
Home equity530 556 576 596 592 
Automobile167 175 181 183 184 
Credit card6 6 8 7 7 
Other consumer33 37 9 9 8 
Total consumer1,165 1,231 1,300 1,312 1,324 
Total nonperforming loans (c)2,068 2,046 2,298 2,480 2,528 
OREO and foreclosed assets33 29 26 26 31 
Total nonperforming assets$2,101 $2,075 $2,324 $2,506 $2,559 
Nonperforming loans to total loans0.66 %0.66 %0.78 %0.86 %0.87 %
Nonperforming assets to total loans, OREO and foreclosed assets0.67 %0.67 %0.79 %0.87 %0.88 %
Nonperforming assets to total assets0.38 %0.38 %0.43 %0.45 %0.46 %
Allowance for loan and lease losses to nonperforming loans 222 %218 %198 %196 %212 %
(a)Represents loans related to customers in the real estate and construction industries.
(b)Excludes most unsecured consumer loans and lines of credit, which are charged off after 120 to 180 days past due and are not placed on nonperforming status.
(c)Nonperforming loans exclude certain government insured or guaranteed loans, loans held for sale and loans accounted for under the fair value option.



Table 10: Change in Nonperforming Assets
July 1, 2022 -April 1, 2022 -January 1, 2022 -October 1, 2021 -July 1, 2021 -
In millionsSeptember 30, 2022June 30, 2022March 31, 2022December 31, 2021September 30, 2021
Beginning balance$2,075 $2,324 $2,506 $2,559 $2,818 
New nonperforming assets438 393 346 395 365 
Charge-offs and valuation adjustments(79)(55)(62)(53)(71)
Principal activity, including paydowns and payoffs(182)(273)(274)(240)(333)
Asset sales and transfers to loans held for sale(3)(6)(21)(3)(30)
Returned to performing status(148)(308)(171)(152)(190)
Ending balance$2,101 $2,075 $2,324 $2,506 $2,559 




THE PNC FINANCIAL SERVICES GROUP, INC.

Page 9
Accruing Loans Past Due (Unaudited)                  

Under the CARES Act credit reporting rules, certain loans modified due to COVID-19 related hardships are not being reported as past due
for the periods presented based on the contractual terms of the loan, even where borrowers may not be making payments on their loans during the modification period. Our 2021 Form 10-K included additional information on COVID-19 related loan modifications.

Table 11: Accruing Loans Past Due 30 to 59 Days (a)
September 30June 30March 31December 31September 30
Dollars in millions20222022202220212021
Commercial
Commercial and industrial$321$99$185$235$97
Commercial real estate1128684668
Equipment lease financing6720255
Total commercial338134273306170
Consumer
Residential real estate
Non government insured 223230239310178
Government insured7568666981
Home equity4643415345
Automobile96102109146114
Credit card4437394942
Education
Non government insured 65555
Government insured
3039363840
Other consumer2138473534
Total consumer541562582705539
Total$879$696$855$1,011$709
Supplemental Information
Total accruing loans past due 30-59 days to total loans0.28 %0.22 %0.29 %0.35 %0.24 %
Commercial0.16 %0.06 %0.14 %0.16 %0.09 %
Consumer0.54 %0.57 %0.61 %0.74 %0.57 %
(a)Excludes loans held for sale.



THE PNC FINANCIAL SERVICES GROUP, INC.

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

Table 12: Accruing Loans Past Due 60 to 89 Days (a)
September 30June 30March 31December 31September 30
Dollars in millions20222022202220212021
Commercial
Commercial and industrial$55$128$64$72$50
Commercial real estate41141242
Equipment lease financing64124
Total commercial651431069856
Consumer
Residential real estate
Non government insured 4953477853
Government insured4642374145
Home equity1614161818
Automobile2124264023
Credit card3025283327
Education
Non government insured
42323
Government insured
2221212323
Other consumer1521262215
Total consumer203202204257207
Total$268$345$310$355$263
Supplemental Information
Total accruing loans past due 60-89 days to total loans0.08 %0.11 %0.11 %0.12 %0.09 %
Commercial0.03 %0.07 %0.05 %0.05 %0.03 %
Consumer0.20 %0.21 %0.21 %0.27 %0.22 %
(a)Excludes loans held for sale.




THE PNC FINANCIAL SERVICES GROUP, INC.

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

Table 13: Accruing Loans Past Due 90 Days or More (a)
September 30June 30March 31December 31September 30
Dollars in millions20222022202220212021
Commercial
Commercial and industrial$139$138$105$132$56
Commercial real estate57111
Total commercial14413811213367
Consumer
Residential real estate
Non government insured 3020415933
Government insured166182232269268
Automobile668144
Credit card5854626253
Education
Non government insured 22221
Government insured
6156626360
Other consumer1212151711
Total consumer335332422486430
Total$479$470$534$619$497
Supplemental Information
Total accruing loans past due 90 days or more to total loans0.15 %0.15 %0.18 %0.21 %0.17 %
Commercial0.07 %0.06 %0.06 %0.07 %0.03 %
Consumer0.34 %0.34 %0.44 %0.51 %0.45 %
Total accruing loans past due$1,626$1,511$1,699$1,985$1,469
Commercial$547$415$491$537$293
Consumer$1,079$1,096$1,208$1,448$1,176
Total accruing loans past due to total loans0.52 %0.49 %0.58 %0.69 %0.51 %
Commercial0.25 %0.20 %0.25 %0.28 %0.15 %
Consumer1.08 %1.12 %1.26 %1.52 %1.24 %
(a)Excludes loans held for sale.





























THE PNC FINANCIAL SERVICES GROUP, INC.

Page 12
Business Segment Descriptions (Unaudited)

Retail Banking provides deposit, lending, brokerage, insurance services, investment management and cash management products and services to consumer and small business customers. Our customers are serviced through our branch network, ATMs, call centers, online banking and mobile channels. As a result of the BBVA acquisition, we have become a coast-to-coast retail bank. Our national expansion strategy is designed to grow customers with digitally-led banking and a thin branch network as we expand into new markets. Deposit products include checking, savings and money market accounts and certificates of deposit. Lending products include residential mortgages, home equity loans and lines of credit, auto loans, credit cards, education loans and personal and small business loans and lines of credit. The residential mortgage loans are directly originated within our branch network and nationwide, and are typically underwritten to agency and/or third-party standards, and either sold, servicing retained or held on our balance sheet. Brokerage, investment management and cash management products and services include managed, education, retirement and trust accounts.

Corporate & Institutional Banking provides lending, treasury management and capital markets related products and services to mid-sized and large corporations, and government and not-for-profit entities. Lending products include secured and unsecured loans, letters of credit and equipment leases. The Treasury Management business provides corporations with cash and investment management services, receivables and disbursement management services, funds transfer services, international payment services and access to online/mobile information management and reporting services. Within Treasury Management, PNC Global Transfers provides wholesale money transfer processing capabilities between the U.S., Mexico and other countries primarily in Central and South America. Capital markets related products and services include foreign exchange, derivatives, fixed income, securities underwriting, loan syndications, mergers and acquisitions advisory and equity capital markets advisory related services. 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 distinct operating units:
•PNC Private Bank provides products and services to emerging affluent, high net worth and ultra high net worth individuals and their families including investment and retirement planning, customized investment management, credit and cash management solutions, trust management and administration. In addition, multi-generational family planning services are also provided to ultra high net worth individuals and their families which include estate, financial, tax, fiduciary and customized performance reporting through PNC Private Bank Hawthorn.
•Institutional Asset Management provides outsourced chief investment officer, custody, private real estate, cash and fixed income client solutions, retirement plan fiduciary investment services to institutional clients including corporations, healthcare systems, insurance companies, unions, municipalities and non-profits.

Table 14: Period End Employees
September 30June 30March 31December 31September 30
20222022202220212021
Full-time employees
Retail Banking33,288 33,565 33,293 32,563 33,188 
Other full-time employees26,328 25,390 25,037 25,105 25,442 
Total full-time employees59,616 58,955 58,330 57,668 58,630 
Part-time employees
Retail Banking1,520 1,712 1,670 1,669 1,616 
Other part-time employees77 460 82 89 94 
Total part-time employees1,597 2,172 1,752 1,758 1,710 
Total61,213 61,127 60,082 59,426 60,340 


THE PNC FINANCIAL SERVICES GROUP, INC.

Page 13
Table 15: Summary of Business Segment Net Income and Revenue (Unaudited) (a)
Three months endedNine months ended
September 30June 30March 31December 31September 30September 30September 30
In millions2022202220222021202120222021
Net Income
Retail Banking$560 $322 $340 $362 $447 $1,222 $1,286 
Corporate & Institutional Banking929 1,003 956 1,334 1,123 2,888 2,990 
Asset Management Group90 86 102 106 114 278 300 
Other45 70 10 (509)(210)125 (195)
Net income excluding noncontrolling
  interests		$1,624 $1,481 $1,408 $1,293 $1,474 $4,513 $4,381 
  
Revenue
Retail Banking$2,742 $2,410 $2,276 $2,408 $2,375 $7,428 $6,594 
Corporate & Institutional Banking2,255 2,221 1,964 2,281 2,306 6,440 6,073 
Asset Management Group396 387 386 388 397 1,169 1,075 
Other156 98 66 50 119 320 342 
Total revenue$5,549 $5,116 $4,692 $5,127 $5,197 $15,357 $14,084 
(a)Our business information is presented based on our internal management reporting practices. Net interest income in business segment results reflects PNC’s internal funds transfer pricing methodology. Assets receive a funding charge and liabilities and capital receive a funding credit based on a transfer pricing methodology that incorporates product repricing characteristics, tenor and other factors.


THE PNC FINANCIAL SERVICES GROUP, INC.

Page 14
Table 16: Retail Banking (Unaudited) (a)
Three months endedNine months ended
September 30June 30March 31December 31September 30September 30September 30
Dollars in millions2022202220222021202120222021
Income Statement
Net interest income$2,017 $1,662 $1,531 $1,634 $1,713 $5,210 $4,572 
Noninterest income725 748 745 774 662 2,218 2,022 
Total revenue2,742 2,410 2,276 2,408 2,375 7,428 6,594 
Provision for (recapture of) credit losses92 55 (81)55 (113)66 (156)
Noninterest expense1,901 1,913 1,892 1,874 1,889 5,706 5,042 
Pretax earnings 749 442 465 479 599 1,656 1,708 
Income taxes175 105 109 112 140 389 396 
Noncontrolling interests14 15 16 5 12 45 26 
Earnings $560 $322 $340 $362 $447 $1,222 $1,286 
Average Balance Sheet
Loans held for sale$837 $957 $1,183 $1,425 $1,583 $991 $1,296 
Loans
Consumer
Residential real estate$34,465 $33,240 $31,528 $30,888 $30,702 $33,088 $23,323 
Home equity23,393 22,886 22,458 22,572 23,047 22,916 22,324 
Automobile15,088 15,566 16,274 16,944 17,377 15,638 15,398 
Credit card6,684 6,508 6,401 6,513 6,484 6,532 6,070 
Education2,327 2,410 2,532 2,620 2,712 2,422 2,820 
Other consumer2,092 2,173 2,348 2,612 2,892 2,204 2,326 
Total consumer 84,049 82,783 81,541 82,149 83,214 82,800 72,261 
Commercial 10,881 11,044 11,610 12,844 15,895 11,176 14,819 
Total loans$94,930 $93,827 $93,151 $94,993 $99,109 $93,976 $87,080 
Total assets$114,619 $113,068 $111,754 $113,782 $117,394 $113,157 $103,820 
Deposits
Noninterest-bearing $65,405 $65,599 $64,058 $65,510 $65,985 $65,026 $55,107 
Interest-bearing 198,956 202,801 201,021 197,312 196,006 200,918 179,567 
Total deposits$264,361 $268,400 $265,079 $262,822 $261,991 $265,944 $234,674 
Performance Ratios
Return on average assets1.94 %1.14 %1.23 %1.26 %1.51 %1.44 %1.66 %
Noninterest income to total revenue26 %31 %33 %32 %28 %30 %31 %
Efficiency69 %79 %83 %78 %80 %77 %76 %
(a)See note (a) on page 13.

THE PNC FINANCIAL SERVICES GROUP, INC.

Page 15
Retail Banking (Unaudited) (Continued)
Three months endedNine months ended
September 30June 30March 31December 31September 30September 30September 30
Dollars in millions, except as noted2022202220222021202120222021
Supplemental Noninterest Income Information
Asset management and brokerage $131 $135 $134 $131 $122 $400 $334 
Card and cash management$344 $351 $308 $347 $346 $1,003 $934 
Lending and deposit services $167 $167 $164 $157 $180 $498 $462 
Residential and commercial mortgage $38 $71 $99 $101 $147 $208 $355 
Residential Mortgage Information
Residential mortgage servicing statistics
   (in billions, except as noted) (a)
Serviced portfolio balance (b)$170 $145 $135 $133 $139 
Serviced portfolio acquisitions$29 $15 $6 $2 $2 $50 $42 
MSR asset value (b)$2.1 $1.6 $1.3 $1.1 $1.1 
MSR capitalization value (in basis points) (b)122 112 98 81 81 
Servicing income: (in millions)
Servicing fees, net (c)$50 $36 $33 $14 $18 $119 $20 
Mortgage servicing rights valuation, net of
   economic hedge		$(30)$13 $2 $2 $24 $(15)$62 
Residential mortgage loan statistics
Loan origination volume (in billions)$3.1 $4.8 $5.1 $6.6 $7.4 $13.0 $18.2 
Loan sale margin percentage1.97 %1.88 %2.45 %2.55 %3.01 %2.13 %2.95 %
Percentage of originations represented by:
Purchase volume (d)85 %74 %42 %38 %47 %64 %45 %
Refinance volume15 %26 %58 %62 %53 %36 %55 %
Other Information (b)
Customer-related statistics (average)
Non-teller deposit transactions (e)65 %64 %64 %64 %66 %64 %66 %
Digital consumer customers (f)78 %78 %78 %79 %80 %78 %80 %
Credit-related statistics
Nonperforming assets $1,027 $1,088 $1,168 $1,220 $1,220 
Net charge-offs - loans and leases$98 $88 $141 $124 $82 $327 $269 
Other statistics
ATMs9,169 9,301 9,502 9,523 9,572 
Branches (g)2,527 2,535 2,591 2,629 2,712 
Brokerage account client assets (in billions) (h)$67 $68 $74 $78 $76 
(a)Represents mortgage loan servicing balances for third parties and the related income.
(b)Presented as of period end, except for average customer-related statistics and net charge-offs, which are both shown for the three and nine months ended.
(c)Servicing fees net of impact of decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan payments, prepayments and loans that were paid down or paid off during the period.
(d)Mortgages with borrowers as part of residential real estate purchase transactions.
(e)Percentage of total consumer and business banking deposit transactions processed at an ATM or through our mobile banking application.
(f)Represents consumer checking relationships that process the majority of their transactions through non-teller channels.
(g)Excludes stand-alone mortgage offices and satellite offices (e.g., drive-ups, electronic branches and retirement centers) that provide limited products and/or services.
(h)Includes cash and money market balances.


THE PNC FINANCIAL SERVICES GROUP, INC.

Page 16
Table 17: Corporate & Institutional Banking (Unaudited) (a)
Three months endedNine months ended
September 30June 30March 31December 31September 30September 30September 30
Dollars in millions2022202220222021202120222021
Income Statement
Net interest income$1,368 $1,253 $1,160 $1,228 $1,250 $3,781 $3,343 
Noninterest income887 968 804 1,053 1,056 2,659 2,730 
Total revenue2,255 2,221 1,964 2,281 2,306 6,440 6,073 
Provision for (recapture of) credit losses150 (17)(118)(369)(99)15 (277)
Noninterest expense890 934 837 975 980 2,661 2,504 
Pretax earnings1,215 1,304 1,245 1,675 1,425 3,764 3,846 
Income taxes 281 298 285 337 299 864 846 
Noncontrolling interests5 3 4 4 3 12 10 
Earnings$929 $1,003 $956 $1,334 $1,123 $2,888 $2,990 
Average Balance Sheet
Loans held for sale$449 $490 $628 $539 $541 $522 $598 
Loans
Commercial
Commercial and industrial $160,140 $153,948 $141,622 $137,079 $134,128 $151,971 $123,505 
Commercial real estate33,525 32,844 32,433 33,559 35,368 32,938 30,919 
Equipment lease financing6,202 6,201 6,099 6,184 6,300 6,168 6,321 
Total commercial 199,867 192,993 180,154 176,822 175,796 191,077 160,745 
Consumer7 14 8 12 20 9 14 
Total loans$199,874 $193,007 $180,162 $176,834 $175,816 $191,086 $160,759 
Total assets$224,984 $219,513 $200,724 $198,874 $202,268 $215,163 $184,964 
Deposits
Noninterest-bearing $73,523 $81,028 $86,178 $88,023 $85,869 $80,197 $76,105 
Interest-bearing71,925 65,151 68,429 72,397 77,247 68,514 72,147 
Total deposits$145,448 $146,179 $154,607 $160,420 $163,116 $148,711 $148,252 
Performance Ratios
Return on average assets1.64 %1.83 %1.93 %2.66 %2.20 %1.79 %2.16 %
Noninterest income to total revenue39 %44 %41 %46 %46 %41 %45 %
Efficiency39 %42 %43 %43 %42 %41 %41 %
Other Information
Consolidated revenue from:
Treasury Management (b)$753 $659 $546 $560 $592 $1,958 $1,609 
Commercial mortgage banking activities:
Commercial mortgage loans held for sale (c)$26 $20 $16 $42 $44 $62 $103 
Commercial mortgage loan servicing income (d)66 70 68 90 88 204 244 
Commercial mortgage servicing rights
   valuation, net of economic hedge		53 33 13 16 14 99 64 
Total$145 $123 $97 $148 $146 $365 $411 
MSR asset value (e)$1,132 $988 $886 $740 $703 
Average loans by C&IB business
Corporate Banking$109,197 $103,595 $92,503 $87,284 $85,208 $101,826 $78,975 
Real Estate45,837 44,202 43,213 44,787 47,335 44,427 42,313 
Business Credit28,930 28,246 26,535 26,065 25,540 27,913 23,367 
Commercial Banking9,008 9,459 10,045 10,924 13,458 9,500 12,435 
Other6,902 7,505 7,866 7,774 4,275 7,420 3,669 
Total average loans$199,874 $193,007 $180,162 $176,834 $175,816 $191,086 $160,759 
Credit-related statistics
Nonperforming assets (e)$779 $674 $866 $1,007 $1,061 
Net charge-offs (recoveries) - loans and leases$33 $11 $(1)$(1)$13 $43 $290 
(a)See note (a) on page 13.
(b)Amounts are reported in net interest income and noninterest income.
(c)Represents commercial mortgage banking income for valuations on commercial mortgage loans held for sale and related commitments, derivative valuations, origination fees, gains on sale of loans held for sale and net interest income on loans held for sale.
(d)Represents net interest income and noninterest income from loan servicing, net of reduction in commercial mortgage servicing rights due to ammortization expense and payoffs. Commercial mortgage servicing rights valuation, net of economic hedge is shown separately.
(e)Presented as of period end.

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Table 18: Asset Management Group (Unaudited) (a)
Three months endedNine months ended
September 30June 30March 31December 31September 30September 30September 30
Dollars in millions, except as noted2022202220222021202120222021
Income Statement
Net interest income$165 $153 $138 $130 $141 $456 $346 
Noninterest income231 234 248 258 256 713 729 
Total revenue396 387 386 388 397 1,169 1,075 
Provision for (recapture of) credit losses4 5 2 (15)(6)11 8 
Noninterest expense274 270 251 265 255 795 676 
Pretax earnings118 112 133 138 148 363 391 
Income taxes 28 26 31 32 34 85 91 
Earnings$90 $86 $102 $106 $114 $278 $300 
Average Balance Sheet
Loans
Consumer
Residential real estate $8,430 $7,835 $6,989 $6,295 $5,727 $7,756 $4,608 
Other consumer4,640 4,633 4,541 4,535 4,544 4,605 4,249 
Total consumer 13,070 12,468 11,530 10,830 10,271 12,361 8,857 
Commercial1,328 1,560 1,848 2,093 2,693 1,577 1,629 
Total loans$14,398 $14,028 $13,378 $12,923 $12,964 $13,938 $10,486 
Total assets$14,820 $14,449 $13,801 $13,317 $13,805 $14,360 $11,124 
Deposits
Noninterest-bearing $2,286 $2,824 $3,458 $3,025 $4,332 $2,852 $2,884 
Interest-bearing27,054 28,839 29,830 26,318 24,984 28,564 21,590 
Total deposits$29,340 $31,663 $33,288 $29,343 $29,316 $31,416 $24,474 
Performance Ratios
Return on average assets2.41 %2.39 %3.00 %3.16 %3.28 %2.59 %3.61 %
Noninterest income to total revenue58 %60 %64 %66 %64 %61 %68 %
Efficiency69 %70 %65 %68 %64 %68 %63 %
Other Information
Nonperforming assets (b)$95 $114 $72 $62 $80 
Net charge-offs (recoveries) - loans and leases $(2)$(1)$2 $1 $(1)$(1)$1 
Brokerage account client assets (in billions) (b)$4 $4 $5 $5 $5 
Client Assets Under Administration
     (in billions) (b) (c)
Discretionary client assets under management$166 $167 $182 $192 $183 
Nondiscretionary client assets under administration148 153 165 175 170 
Total$314 $320 $347 $367 $353 
Discretionary client assets under management
PNC Private Bank$99 $103 $115 $123 $117 
Institutional Asset Management67 64 67 69 66 
Total$166 $167 $182 $192 $183 
(a)See note (a) on page 13.
(b)As of period end.
(c)Excludes brokerage account client assets.

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Glossary of Terms

2019 Tailoring Rules – Rules adopted by the federal banking agencies to better tailor the application of their capital, liquidity, and enhanced prudential requirements for banking organizations to the asset size and risk profile (as measured by certain regulatory metrics) of the banking organization. Effective January 1, 2020, the agencies' capital and liquidity rules classify all BHCs with $100 billion or more in total assets into one of four categories (Category I, Category II, Category III, and Category IV).

Adjusted average total assets - Primarily consisted of total average quarterly (or annual) assets plus/less unrealized losses (gains) on investment securities, less goodwill and certain other intangible assets (net of eligible deferred taxes).

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

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

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

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

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

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

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

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

BBVA – BBVA USA Bancshares, Inc.

BBVA, S.A. – Banco Bilbao Vizcaya Argentaria, S.A.

BBVA USA – BBVA USA, the Alabama-chartered bank subsidiary of BBVA USA Bancshares, Inc.

BlackRock – BlackRock, Inc.

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

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

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

Criticized commercial loans - Loans with potential or identified weaknesses based upon internal risk ratings that comply with the regulatory classification definitions of “Special Mention,” “Substandard” or “Doubtful.”

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


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

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

Effective duration - A measurement, expressed in years, that, when multiplied by a change in interest rates, would approximate the percentage change in value of on- and off- balance sheet positions.

Efficiency - Noninterest expense divided by total revenue.

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

Fee income - Refers to the following categories within Noninterest income: Asset management; Consumer services; Corporate services; Residential mortgage; and Service charges on deposits.

FICO score - A credit bureau-based industry standard score created by Fair Isaac Co. which predicts the likelihood of borrower default. We use FICO scores both in underwriting and assessing credit risk in our consumer lending portfolio. Lower FICO scores indicate likely higher risk of default, while higher FICO scores indicate likely lower risk of default. FICO scores are updated on a periodic basis.

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

Leverage ratio - Basel III Tier 1 capital divided by average quarterly adjusted total assets.

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

Nonperforming assets - Nonperforming assets include nonperforming loans, OREO and foreclosed assets. We do not accrue interest income on assets classified as nonperforming.

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

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

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

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

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

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

Supplementary leverage ratio - Basel III Tier 1 capital divided by Supplementary leverage exposure.

Taxable-equivalent interest income - The interest income earned on certain assets that is completely or partially exempt from federal income tax. These tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of yields and margins for all interest-earning assets, we use interest income on a taxable-equivalent basis in calculating average yields and net interest margins by increasing the interest income earned on tax-exempt assets to make it fully equivalent to

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interest income earned on other taxable investments. This adjustment is not permitted under GAAP on the Consolidated Income Statement.

Troubled debt restructuring (TDR) - A loan whose terms have been restructured in a manner that grants a concession to a borrower experiencing financial difficulties.

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

Yield curve - A graph showing the relationship between the yields on financial instruments or market indices of the same credit quality with different maturities. For example, a “normal” or “positive” yield curve exists when long-term bonds have higher yields than short-term bonds. A “flat” yield curve exists when yields are the same for short-term and long-term bonds. A “steep” yield curve exists when yields on long-term bonds are significantly higher than on short-term bonds. An “inverted” or “negative” yield curve exists when short-term bonds have higher yields than long-term bonds.