34The PNC Financial Services Group, Inc. – Form 10-Q

The following graph presents the SOFR curves for the base rate scenario and each of the alternate scenarios one year forward:

Table ~~31:~~33: Alternate Interest Rate Scenarios: One Year Forward

The third quarter ~~2022~~2023 interest sensitivity analyses indicate that our Consolidated Balance Sheet is positioned to benefit from an increase in interest rates over the longer term and an upward sloping interest rate yield curve. We believe that we have the deposit funding base and balance sheet flexibility to adjust, where appropriate and permissible, to changing interest rates and market conditions.

~~LIBOR Transition~~

The scheduled discontinuance of the requirement that banks submit rates for the calculation of LIBOR after June 30, 2023 presents risks to the financial instruments originated, held or serviced by PNC that use LIBOR as a reference rate. For more discussion regarding the transition from LIBOR, see the Risk Management section in Item 7 of our 2021 Form 10-K.

~~Key efforts related to our transition plan to date have included:~~

•~~Enhancing fallback language in new contracts and reviewing existing legal contracts/agreements to assess fallback language impacts,~~

•~~Making preparations for internal operational readiness,~~

•~~Making necessary enhancements to PNC's infrastructure, including systems, models, valuation tools and processes,~~

•~~Developing and delivering on internal and external LIBOR cessation communication plans,~~

•~~Engaging with PNC clients, industry working groups and regulators,~~

•~~Monitoring developments associated with LIBOR alternatives and industry practices related to LIBOR-indexed instruments,~~

•~~Incorporating BBVA into PNC’s LIBOR transition effort, and~~

•Initiating the offering of instruments referencing alternative rates in order to align with regulatory guidance encouraging the transition away from the use of USD LIBOR in new contracts after December 31, 2021.

As of December 31, 2021, PNC Bank ceased entering into new contracts with a LIBOR reference rate, except on a limited basis, as permissible. PNC is offering conforming adjustable rate mortgages using SOFR instead of USD LIBOR, in line with Fannie Mae and Freddie Mac requirements, and nonconforming adjustable rate residential mortgages using SOFR and private education loans using Prime. Alternative rates, primarily SOFR, are currently offered to our corporate and commercial customers. The focus for 2022 is planning for the cessation event in 2023 for all lines of business. Corporate & Institutional Banking has initiated amending contracts with inadequate fallback language, working on systems enhancements and continuing with client outreach and education. PNC has provided regular updates to Federal Reserve, OCC and FDIC examination staff regarding its LIBOR cessation and transition plans.

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

Market Risk Management – Customer-Related Trading Risk

We engage in fixed income securities, derivatives and foreign exchange transactions to support our customers’ investing and hedging activities. These transactions, related hedges and the credit valuation adjustment related to our customer derivatives portfolio are marked-to-market daily and reported as customer-related trading ~~activities.We~~activities. We do not engage in proprietary trading of these products.

We use VaR as the primary means to measure and monitor market risk in customer-related trading activities. VaR is used to estimate the probability of portfolio losses based on the statistical analysis of historical market risk factors. VaR is calculated for each of the portfolios that comprise our customer-related trading activities of which the majority are covered positions as defined by the Market Risk Rule. VaR is computed with positions and market risk factors updated daily to ensure each portfolio is operating within its acceptable limits.

See the Market Risk Management – Customer-Related Trading Risk section of our ~~2021~~2022 Form 10-K for more information on our models used to calculate VaR and our backtesting process.

Customer-related trading revenue was $118 million for the nine months ended September 30, 2023, compared to $291 million for the nine months ended September 30, ~~2022, compared to $278 million for the nine months ended September 30, 2021.~~2022. The ~~increase~~decrease was ~~primarily~~mainly due to ~~improved interest rate~~higher funding costs on the trading positions inventory and lower derivative ~~and foreign exchange~~ client sales revenues, partially offset by ~~the impact of changes in credit valuations for customer-related derivative activities.~~improved foreign exchange client revenues.

Market Risk Management – Equity And Other Investment Risk

Equity investment risk is the risk of potential losses associated with investing in both private and public equity markets. In addition to extending credit, taking deposits, underwriting securities and trading financial instruments, we make and manage direct investments in a variety of transactions, including management buyouts, recapitalizations and growth financings in a variety of industries. We also have investments in affiliated and non-affiliated funds that make similar investments in private equity, consistent with regulatory limitations. The economic and/or book value of these investments and other assets are directly affected by changes in market factors.

Various PNC business units manage our equity and other investment activities. Our businesses are responsible for making investment decisions within the approved policy limits and associated guidelines.

The PNC Financial Services Group, Inc. – Form 10-Q 35

A summary of our equity investments follows:

Table ~~32:~~34: Equity Investments Summary


		September 30 2022		December 31 2021		Change					September 30 2023		December 31 2022		Change
Dollars in millions	Dollars in millions					$		%		Dollars in millions					$		%
Tax credit investments	Tax credit investments	$	3,993	$	3,954	$	39	1	%	Tax credit investments	$	4,159	$	4,308	$	(149)	(3)	%
Private equity and other	Private equity and other	4,137		4,226		(89)		(2)	%	Private equity and other	3,887		4,129		(242)		(6)	%
Total	Total	$	8,130	$	8,180	$	(50)	(1)	%	Total	$	8,046	$	8,437	$	(391)	(5)	%

Tax Credit Investments

Included in our equity investments are direct tax credit investments and equity investments held by consolidated entities. These tax credit investment balances included unfunded commitments totaling ~~$2.3 billion and $2.2~~$2.5 billion at both September 30, ~~2022~~2023 and December 31, ~~2021,~~2022, respectively. These unfunded commitments are included in Other liabilities on our Consolidated Balance Sheet.

Note 5 Loan Sale and Servicing Activities and Variable Interest Entities in ~~the Notes To Consolidated Financial Statements in Item 8 of~~ our ~~2021~~2022 Form 10-K has further information on tax credit investments.

Private Equity and Other

The largest component of our other equity investments is our private equity portfolio. The private equity portfolio is an illiquid portfolio consisting of mezzanine and equity investments that vary by industry, stage and type of investment. Private equity investments carried at estimated fair value totaled ~~$2.0~~$1.9 billion and $1.8 billion at September 30, ~~2022~~2023 and December 31, ~~2021,~~2022, respectively. As of September 30, ~~2022, $1.8~~2023, $1.7 billionwas invested directly in a variety of companies and $0.2 billion was invested indirectly through various private equity funds.

Included in our other equity investments are Visa Class B common shares, which are recorded at cost. Visa Class B common shares that we own are transferable only under limited circumstances until they can be converted into shares of the publicly-traded Class A common shares, which cannot happen until the resolution of the pending interchange litigation. Based upon the September 30, ~~2022~~2023 per share closing price of ~~$177.65~~$230.01 for a Visa Class A common share, the estimated value of our total investment in the Class B common shares was approximately ~~$1.0~~$1.3 billion at the current conversion rate of Visa B shares to Visa A shares, while our cost basis was insignificant. See Note 15 Fair Value and Note 21 Legal Proceedings in ~~the Notes To Consolidated Financial Statements~~our 2022 Form 10-K and Note 13 Legal Proceedings in ~~Item 8 of our 2021 Form 10-K~~this Report for additional information regarding our Visa ~~agreements.~~agreements, and Visa’s proposed amendments to its Certificate of Incorporation to institute, if approved by stockholders, an exchange offer program that would release transfer restrictions on portions of the Visa Class B common shares. The estimated value does not represent fair value of the Visa B common shares given the ~~shares'~~shares’ limited transferability and the lack of observable transactions in the marketplace.

~~The PNC Financial Services Group, Inc. –~~ ~~Form 10-Q~~ 37

We also have certain other equity investments, the majority of which represent investments in affiliated and non-affiliated funds with both traditional and alternative investment strategies. Net gains related to these investments were $17 million for the nine months ended September 30, 2023 and $26 million for the nine months ended September 30, ~~2022 and $44 million for the nine months ended September 30, 2021.~~

2022.

Financial Derivatives

We use a variety of financial derivatives as part of the overall asset and liability risk management process to help manage exposure to market (primarily interest rate) and credit risk inherent in our business activities. We also enter into derivatives with customers to facilitate their risk management activities.

Financial derivatives involve, to varying degrees, market and credit risk. 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 and an underlying as specified in the contract. Therefore, cash requirements and exposure to credit risk are significantly less than the notional amount on these instruments.

Further information on our financial derivatives is presented in Note 1 Accounting Policies, Note 15 Fair Value and Note 16 Financial Derivatives in our ~~Notes To Consolidated Financial Statements in Item 8 of our 2021~~2022 Form 10-K and in Note 1211 Fair Value and Note 1312 Financial Derivatives in ~~the Notes To Consolidated Financial Statements in Item 1 of~~ this Report.

Not all elements of market and credit risk are addressed through the use of financial derivatives, and such instruments may be ineffective for their intended purposes due to unanticipated market changes, among other reasons.

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

RECENT REGULATORY DEVELOPMENTS

Long-Term Debt Requirements

In August ~~2022,~~2023, the ~~President signed~~federal banking agencies proposed rules that would require Category II, III, and IV bank holding companies under the Federal Reserve’s Enhanced Prudential Standards to issue and maintain minimum amounts of long-term debt that satisfies certain requirements. Under the proposal, insured depository institutions of such bank holding companies would also be required to issue and maintain long-term debt internally to a company that consolidates the insured depository institution, which in turn would be required to purchase that long-term debt. Additionally, Category II, III, and IV bank holding companies would be subject to “clean holding company” requirements, which would prohibit such companies from entering into ~~law~~certain financial arrangements and cap liabilities that are not long-term debt and rank at either the ~~Inflation Reduction Act~~same priority as or junior to eligible external long-term debt. PNC, as a Category III holding company, and PNC Bank would be subject to the rules and would have a three-year phase-in period after any final rule to achieve compliance with the long-term debt requirements. If the rules were finalized in their current form, we would expect to achieve compliance through normal course funding.

Resolution Plan Requirements

In August 2023, the FDIC proposed changes to its rule requiring certain insured depository institutions, including PNC Bank, to periodically submit a resolution plan that, in the event of ~~2022 (the “Act”). Among other things, including~~a hypothetical failure, should enable the ~~allocation of $369.0~~FDIC to resolve the bank under the Federal Deposit Insurance Act. Under the proposed rule, banks with $100 billion ~~for climate-related spending~~or more in assets, such as ~~clean energy tax credits~~PNC Bank, would be required to submit full resolution plans on a two-year cycle with an interim informational supplement and ~~investments,~~FDIC supervisory activities and capabilities testing between full submissions. The proposed rule would significantly expand the required content elements and add virtual data room and valuation capabilities as significant components of the resolution planning process. The proposal would divide banks with $100 billion or more in assets into two future groups, with one group of banks required to submit their first full resolution plan under the new rule at least 270 days after the effective date of the final rule, and the other submitting full plans the following year.

The Federal Reserve and FDIC also proposed new guidance for holding company resolution plans submitted by triennial full filers, such as PNC, under section 165(d) of the Dodd-Frank Act ~~imposes a 15% minimum tax on~~and the ~~adjusted financial statement income~~implementing regulations. The proposed guidance bifurcates each area of ~~taxpayers~~requirements into separate sections for single point of entry and multiple point of entry resolution strategies, generally applying—to the extent relevant to each resolution strategy—the expectations from the 2019 resolution plan guidance applicable to U.S. GSIBs. Firms like PNC with a multiple point of entry resolution strategy would be required to incorporate more ~~than $1.0 billion of such income. The Act also imposes a 1% excise tax on corporate stock repurchases. The minimum tax~~severe plan assumptions and ~~excise tax requirements, as written, could impact PNC's cash tax liability.~~

~~In October 2022,~~include new required plan content, operational capabilities, legal entity rationalization, and separability options, among other requirements. PNC’s next 165(d) resolution plan is due July 1, 2024, unless the Federal Reserve and FDIC ~~jointly issued~~provide an advance notice of proposed rulemaking to solicit input on potential changes to the resolution-related requirements applicable to large banking organizations like PNC that are not GSIBs. The advance notice of proposed rulemaking solicits comments and poses specific questions on whether to impose GSIB-like resolution requirements on large banking organizations that are not GSIBs, including a requirement to maintain loss-absorbing capacity at the insured depository institution or holding company in the form of long-term debt, a “clean holding company” requirement that would prohibit top-tier holding companies from entering certain financial arrangements (such as short-term borrowing or derivative contracts), the Federal Reserve’s supervisory guidance on recovery planning, separability requirements and certain disclosure requirements currently applicable to GSIBs. Such requirements could, among other things, increase PNC’s borrowing costs, require the implementation of new operational capabilities, and require changes to PNC’s resolution strategies at the holding company and bank level.extension.

Other Regulatory Developments

On October 19, 2023, the CFPB proposed for public comment a rule to implement Section 1033 of the Dodd-Frank Act, which requires certain entities, including PNC and PNC Bank, to, upon request, make available to a consumer information in the entity’s control or possession concerning the consumer financial product or service that the consumer obtained from that entity. In general, the proposed rule would require data providers holding a consumer account, such as PNC Bank, to establish a developer interface satisfying certain security and other standards, accept requests for specific types of data covered by the rule through the developer interface and, in response to such a request, make that data available in electronic form to consumers and authorized third parties, including data aggregators. Data providers could not charge consumers or third parties fees for processing these requests. The proposed rule would also place data security, authorization, and other obligations on third parties accessing covered data from data providers, which could include PNC and PNC Bank when acting in certain capacities. The rule would also require third parties to limit their collection, use, and retention of the data received to only that reasonably necessary to provide the consumer’s requested product or service. The rule would be effective for PNC and PNC Bank six months after publication of the final rule.

On October 24, 2023, the federal banking agencies issued a final rule to amend the regulations implementing the Community Reinvestment Act (CRA), which requires the agencies to assess a bank’s record of meeting the credit needs of the communities in which they do business, including low- and moderate-income neighborhoods. The rule significantly expands the number of areas in which a bank is evaluated, materially changes the tests used to evaluate the bank in those areas and expands the data a bank must collect and report. We expect the rule will increase PNC Bank’s obligations and compliance costs necessary to achieve a “Satisfactory” or “Outstanding” rating under the CRA framework, which factors into the ability of banks to expand and engage in new activities.

On October 25, 2023, the Federal Reserve proposed revisions to the three components of the interchange fee cap for a debit card transaction received by a debit card issuer that does not qualify for a statutory exemption, such as PNC Bank. Under the proposed rule, the base component would decrease from 21.0 to 14.4 cents, the ad valorem component would decrease from 5.0 basis points to 4.0 basis points (multiplied by the value of the transaction) and for a debit card issuer that meets certain fraud-prevention standards, the fraud-prevention adjustment component would increase from 1.0 cents to 1.3 cents. The proposed rule would also codify an approach to update the three components every other year. The final rule would take effect on the first day of the next calendar quarter that begins at least 60 days after the rule is published.

The PNC Financial Services Group, Inc. – Form 10-Q 37

CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS

Our consolidated financial statements are prepared by applying certain accounting policies. Note 1 Accounting Policies in our ~~2021~~2022 Form 10-K describes the most significant accounting policies that we ~~use to prepare our consolidated financial statements.~~use. Certain of these policies require us to make estimates or economic assumptions that may vary under different assumptions or conditions, and such variations may significantly affect our reported results and financial position for the period or in future periods. The policies and judgments related to residential and commercial MSRs and ~~level~~Level 3 fair value measurements are described in Critical Accounting Estimates and Judgments in ~~Item 7 of~~ our ~~2021~~2022 Form 10-K. The following details the critical estimates and judgments around the ACL.

Allowance for Credit Losses

We maintain the ACL at levels that we believe to be appropriate as of the balance sheet date to absorb expected credit losses on our existing investment securities, loans, equipment finance leases, other financial assets and unfunded lending related commitments, for the remaining estimated contractual term of the assets or exposures, taking into consideration expected ~~prepayments.~~prepayments and estimated recoveries. Our determination of the ACL is based on historical loss and performance experience, as well as current borrower and transaction characteristics including collateral type and quality, current economic conditions, reasonable and supportable forecasts of future economic conditions and other relevant factors. We use methods sensitive to changes in economic conditions to interpret these factors and to estimate expected credit losses. We evaluate and, when appropriate, enhance the quality of our data and models and other methods used to estimate the ACL on an ongoing basis. We ~~apply~~incorporate qualitative factors ~~to reflect~~ in the ACL that reflect our best estimate of ~~amounts that we do not expect to collect because~~

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

~~of, among other things, idiosyncratic risk factors, changes in economic conditions~~expected losses that may not be ~~reflected~~adequately represented in ~~forecasted results,~~our quantitative methods or ~~other potential methodology limitations.~~economic assumptions. The major drivers of ACL estimates ~~include:~~include, but are not limited to:

•Current economic conditions: Our forecast of expected losses depends on economic conditions as of the estimation date. As current economic conditions evolve, forecasted losses could be materially affected.

•Scenario weights and design: Our loss estimates are sensitive to the shape, direction and rate of change of macroeconomic forecasts and thus vary significantly between upside and downside scenarios. Changes to probability weights assigned to these scenarios and timing of peak business cycles reflected by the scenarios could materially affect our loss estimates.

•Current borrower quality: Our forecast of expected losses depends on current borrower and transaction characteristics, including credit metrics and collateral type/quality. As borrower quality ~~changes,~~evolves, forecasted losses could be materially affected.

•Portfolio ~~volume and mix:~~composition: Changes to portfolio volume and mix could materially affect our estimates, as CECL reserves

would be recognized upon origination or ~~acquisition.~~acquisition and derecognized upon paydown, maturity or sale.

For all assets and unfunded lending related commitments within the scope of the CECL standard, the applicable ACL is composed of one or a combination of the following components: (i) collectively assessed or pooled reserves, (ii) individually assessed reserves, and

(iii) qualitative (judgmental) reserves. Our methodologies and key assumptions for each of these components are discussed in Note 1

Accounting ~~Policies in our 2021 Form 10-K.~~Policies.

Reasonable and Supportable Economic Forecast

~~Under~~Pursuant to the CECL standard, we are required to consider reasonable and supportable forecasts in estimating expected credit losses. For this purpose,

we have established a framework ~~which~~that includes a ~~three year~~three-year forecast period and the use of four economic scenarios with associated probability weights, which in combination create a forecast of expected economic ~~outcomes over our reasonable and supportable forecast period.~~outcomes. Credit losses estimated in our reasonable and supportable forecast period are sensitive to the shape and severity of the scenarios used and weights assigned to them.

To generate the four economic forecast scenarios, we use a combination of quantitative macroeconomic models, other measures of economic activity and forward-looking expert judgment to forecast the distribution of economic outcomes over the reasonable and supportable forecast period. Each scenario is then given an associated probability (weight) ~~in order~~ to represent our current expectation within that distribution over the forecast period. This process is informed by current economic conditions, expected business cycle evolution and the expert judgment of PNC’s RAC. This approach seeks to provide a reasonable representation of the forecast of expected economic outcomes and is used to estimate expected credit losses across a variety of loans, securities and ~~securities.~~other financial assets. Each quarter, the scenarios are presented to RAC for approval, ~~to PNC’s RAC, which~~and the committee also ~~determines and~~ approves CECL ~~scenarios'~~scenario weights for use ~~for~~during the current reporting period.

The scenarios used for the period ended September 30, ~~2022 reflect an increase in downside risk compared to December 31, 2021. The current outlook considers~~2023 consider, among other factors, the ongoing inflationary pressures ~~that have broadened~~ and ~~intensified since~~ the ~~start~~corresponding tightening of ~~the year, along with the fact that the FOMC raised interest rates more aggressively than what was expected at December 31, 2021, increasing the risk of a broader-ranged economic slowdown. Though the~~monetary policy and credit availability. Our most-likely expectation ~~continues to be~~at September 30, 2023 is that the U.S. economy ~~narrowly avoids~~will be impacted by a mild recession ~~growth is expected to slow and~~starting in the ~~primary downside risk to the outlook has shifted from the pandemic to monetary policy tightening and inflation.~~first half of 2024.

We used a number of economic variables in our scenarios, with two of the most significant drivers being ~~Real~~real GDP and the U.S. unemployment rate. The following table presents a comparison of these two economic variables based on the weighted-average scenario forecasts used in determining our ACL at September 30, ~~2022~~2023 and December 31, ~~2021.~~2022.

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

Table ~~33:~~35: Key Macroeconomic Variables in CECL Weighted-Average Scenarios

Assumptions as of September 30, 2022
2022 2023 2024
U.S. Real GDP (a) 0.2% 0.1% 1.5%
U.S. Unemployment Rate (b) 3.8% 4.8% 4.7%
Assumptions as of December 31, 2021
2022 2023 2024
U.S. Real GDP (a) 2.8% 1.4% 1.3%
U.S. Unemployment Rate (b) 4.4% 4.1% 3.9%


	Assumptions as of September 30, 2023
	2023	2024	2025
U.S. real GDP (a)	2.1%	(0.1)%	1.9%
U.S. unemployment rate (b)	3.8%	4.6%	4.6%
	Assumptions as of December 31, 2022
	2023	2024	2025
U.S. real GDP (a)	(0.4)%	1.4%	1.9%
U.S. unemployment rate (b)	4.9%	4.9%	4.4%

(a)Represents year-over-year growth (loss) rates.

(b)Represents quarterly average rate at December 31, ~~2022,~~ 2023, 2024 and ~~2024,~~2025, respectively.

Real GDP growth is expected to end ~~2022~~2023 at ~~0.2%~~2.1% on a weighted average basis, ~~down~~up from the ~~2.8%~~(0.4%) assumed at December 31, ~~2021~~2022, primarily due ~~primarily~~ to ~~weaker expected~~stronger-than-anticipated growth in the ~~second~~first half of ~~2022, along with the unexpected contraction of GDP in the first and second quarter of 2022.~~2023. Growth then drops to ~~0.1%~~(0.1)% in ~~2023,~~2024, before ~~growing~~jumping to ~~1.5%~~1.9% in ~~2024.~~2025. In line with stronger-than-anticipated job growth in 2023, the ~~slowing in overall economic~~

~~The PNC Financial Services Group, Inc. –~~ ~~Form 10-Q~~ 39

~~activity,~~weighted-average projection of the ~~weighted average~~ unemployment rate is expected to end 2023 at 3.8%, down from the 4.9% assumed at December 31,2022. The weighted-average unemployment rate is then expected to increase ~~modestly to 4.8% in 2023, with unemployment narrowly improving to 4.7% in 2024.~~through 2024, reaching 4.6% by year-end 2024, and remain flat at 4.6% through the fourth quarter of 2025.

The current state of the economy reflects an environment with receding ~~COVID-19 related~~pandemic-related risks ~~but~~and labor-related supply chain pressures. However, heightened uncertainty remains ~~in terms of losses~~ due to structural and secular changes fostered by the pandemic for certain sectors of the economy combined with inflation, rising interest rates and ~~ongoing supply chain pressures.~~declining consumer savings and deposit balances. As such, for both our commercial and consumer loan portfolios, PNC identified and performed significant analysis around segments impacted by such uncertainties to ensure our reserves are adequate, given our current macroeconomic expectations.

We believe the economic scenarios effectively reflect the distribution of potential economic outcomes. Additionally, through in-depth and granular ~~analysis~~analyses, we have addressed reserve requirements for the specific populations most affected in the current environment. Through this approach, we believe the reserve levels appropriately reflect the expected credit losses in the portfolio as of the balance sheet date.

See the following for additional details on the components of our ACL:

•Allowance ~~For~~for Credit Losses in the Credit Risk Management section of this Financial Review,

•Note 2 Investment Securities, and

•Note 3 ~~Investment Securities and Note 4~~ Loans and Related Allowance for Credit ~~Losses in the Notes To Consolidated Financial Statements included in this Report.~~Losses.

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

~~Recently Issued Accounting Standards~~


~~Accounting Standards Update~~	~~Description~~	~~Financial Statement Impact~~
~~Portfolio Layer Hedging -~~ ~~ASU 2022-01~~ ~~Issued March 2022~~	~~• Required effective date of January 1, 2023; early adoption is permitted.~~ ~~• Permits entities to expand their use of the portfolio layer method (previously the last-of-layer method) for fair value hedges of interest rate risk.~~ ~~• Expands the scope to allow nonprepayable financial assets to be included in a closed portfolio hedge using the portfolio layer method.~~ ~~• Allows multiple hedged layers to be designated for a single closed portfolio of financial assets or one or more beneficial interests secured by a portfolio of financial instruments.~~ • Provides additional guidance on accounting for fair value hedge basis adjustments associated with portfolio layer hedges, generally requiring these adjustments to be maintained at the closed portfolio level and clarifying how these amounts should be disclosed. • Requires a prospective transition approach for designation of multiple hedged layers of a single closed portfolio, a modified retrospective transition approach for hedge basis adjustments under the portfolio layer method, and the option of a prospective or retrospective transition approach for disclosures. • Allows for an election to transfer debt securities classified as held to maturity to available for sale if the portfolio layer hedging method is applied to those securities; the election must be made within 30 days of adoption.	~~• We are currently evaluating when to adopt the amendments in ASU 2022-01 and the impact of the ASU on our consolidated results of operations and our consolidated financial position.~~
~~Troubled Debt Restructurings and Vintage Disclosures - ASU 2022-02~~ ~~Issued March 2022~~	• ~~Required effective date of January 1, 2023; early adoption is permitted.~~ • Eliminates the accounting guidance for TDRs and requires an entity to apply the loan refinancing and restructuring guidance to determine whether a modification results in a new loan or a continuation of an existing loan. • ~~Eliminates the requirement to use a discounted cash flow approach to measure the allowance for credit losses for TDRs.~~ • ~~Enhances disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty.~~ • ~~Requires disclosure of current-period gross charge-offs by year of origination for financing receivables and net investments in leases within the scope of CECL.~~ • Requires a prospective transition approach to all amendments except those related to the recognition and measurement of TDRs (which allow a modified retrospective transition approach through a cumulative-effect adjustment to retained earnings in the period of adoption).	• ~~We do not plan to early adopt ASU 2022-02.~~ • We do not expect the adoption of this standard to materially impact our consolidated results of operations or our consolidated financial position. The amendments will require changes to disclosures on information related to loan modifications to borrowers experiencing financial difficulty and current-period gross charge-offs.

Recently Adopted Accounting Pronouncements

See Note 1 Accounting Policies ~~in the Notes To Consolidated Financial Statements included in this Report~~ regarding the impact of new accounting pronouncements ~~which~~that we have adopted.

~~The PNC Financial Services Group, Inc. –~~ ~~Form 10-Q~~ 41

INTERNAL CONTROLS AND DISCLOSURE CONTROLS AND PROCEDURES

As of September 30, ~~2022,~~2023, we performed an evaluation under the supervision of and with the participation of our management, including the Chairman, President and Chief Executive Officer and the Executive Vice President and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures and of changes in our internal control over financial reporting.

Based on that evaluation, our Chairman, President and Chief Executive Officer and our Executive Vice President and Chief Financial Officer concluded that our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) were effective as of September 30, ~~2022,~~2023, and that there has been no change in PNC’s internal control over financial reporting that occurred during the third quarter of ~~2022~~2023 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

The PNC Financial Services Group, Inc. – Form 10-Q 39

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

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

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

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

•Our businesses, financial results and balance sheet values are affected by business and economic conditions, including:

–Changes in interest rates and valuations in debt, equity and other financial markets,

–Disruptions in the U.S. and global financial markets,

–Actions by the Federal Reserve Board, U.S. Treasury and other government agencies, including those that impact money supply, market interest rates and inflation,

–Changes in customer behavior due to changing business and economic conditions or legislative or regulatory initiatives,

–Changes in customers’, suppliers’ and other counterparties’ performance and creditworthiness,

–Impacts of sanctions, tariffs and other trade policies of the U.S. and its global trading partners,

–~~The impact of the Russia-Ukraine conflict, and associated sanctions or other actions in response, on the global and U.S. economy,~~

–~~The length and extent of the economic impacts of the COVID-19 pandemic,~~

–Impacts of changes in federal, state and local governmental policy, including on the regulatory landscape, capital markets, taxes, infrastructure spending and social programs,

–~~PNC’s~~Our ability to attract, recruit and retain skilled employees, and

–Commodity price volatility.

•Our forward-looking financial statements are subject to the risk that economic and financial market conditions will be substantially different than those we are currently expecting and do not take into account potential legal and regulatory contingencies. These statements are based on our views that:

–~~Although real GDP contracted~~Economic growth accelerated in the first half of 2023, but ongoing Federal Reserve monetary policy tightening to slow inflation is weighing on interest-rate sensitive industries. Sectors where interest rates play an outsized role, such as business investment and ~~second quarters of 2022, the U.S. economy is not~~consumer spending on durable goods, will contract in a recession. In particular, the labor market remains extremely strong, with average monthly job growth well above the pre-pandemic pace, and the unemployment rate at a 50-year low. Supply-chain difficulties will continue to ease into 2023. Labor shortages will remain a constraint into 2023, although strong wage growth and high levels of household saving will support consumer spending.2024.

–~~PNC expects economic growth~~PNC’s baseline outlook is for a mild recession starting in mid-2024, with a small contraction in real GDP of less than 1%, lasting into late 2024. The unemployment rate will be below its long-term trend in the near term as the Federal Reserve continues to tighten monetary policy in an attempt to reduce inflationary pressures, but does not expect a near-term recession. Recession risks over the next few years are elevated, however, because of tighter monetary policy.

–Inflation has started to slow, but remains near the strongest pace in decades. Inflation should slow further due to softer economic growth and a continued easing in supply-chain difficulties and will return to the Federal Reserve's 2% long-run objective in 2024.

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

–~~The FOMC raised the federal funds rate by 0.75% in September, to a range of 3.00% to 3.25%. PNC expects further increases in the federal funds rate~~increase through the rest of ~~this year,~~2023 and throughout 2024, peaking at close to ~~a range~~5% in early 2025. Inflation will slow with weaker demand, moving back to the Federal Reserve’s 2% objective by the second half of ~~4.25% to 4.50% at the end of 2022.~~ 2024.

–PNC expects the federal funds rate to ~~peak~~remain unchanged in the near term, between ~~4.50%~~5.25% and ~~4.75%~~5.50% through mid-2024, with federal funds rate cuts starting in ~~early 2023, before falling~~the third quarter of 2024 in ~~early 2024 as inflation ebbs and economic growth slows.~~response to the recession.

•PNC’s ability to take certain capital actions, including returning capital to shareholders, is subject to PNC meeting or exceeding an SCB established by the Federal Reserve Board in connection with the Federal Reserve ~~Board's~~Board’s CCAR process.

•PNC’s regulatory capital ratios in the future will depend on, among other things, the company’s financial performance, the scope and terms of final capital regulations then in effect and management actions affecting the composition of PNC’s balance sheet. In addition, PNC’s ability to determine, evaluate and forecast regulatory capital ratios, and to take actions (such as capital distributions) based on actual or forecasted capital ratios, will be dependent at least in part on the development, validation and regulatory review of related models and the reliability of and risks resulting from extensive use of such models.

•Legal and regulatory developments could have an impact on our ability to operate our businesses, financial condition, results of operations, competitive position, reputation, or pursuit of attractive acquisition opportunities. Reputational impacts could affect matters such as business generation and retention, liquidity, funding and ability to attract and retain employees. These developments could include:

–Changes to laws and regulations, including changes affecting oversight of the financial services industry, changes in the enforcement and interpretation of such laws and regulations and changes in accounting and reporting standards.

–Unfavorable resolution of legal proceedings or other claims and regulatory and other governmental investigations or other inquiries resulting in monetary losses, costs, or alterations in our business practices and potentially causing reputational harm to PNC.

–Results of the regulatory examination and supervision process, including our failure to satisfy requirements of agreements with governmental agencies.

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

–Costs associated with obtaining rights in intellectual property claimed by others and of adequacy of our intellectual property protection in general.

•Business and operating results are affected by our ability to identify and effectively manage risks inherent in our businesses, including, where appropriate, through effective use of systems and controls, third-party insurance, derivatives, and capital management techniques and to meet evolving regulatory capital and liquidity standards.

•Our reputation and business and operating results may be affected by our ability to appropriately meet or address environmental, social or governance targets, goals, commitments or concerns that may arise.

•We grow our business in part through acquisitions and new strategic initiatives. Risks and uncertainties include those presented by the nature of the business acquired and strategic initiative, including in some cases those associated with our entry into new businesses or new geographic or other markets and risks resulting from our inexperience in those new areas, as well as risks and uncertainties related to the acquisition transactions themselves, regulatory issues, the integration of the acquired businesses into PNC after closing or any failure to execute strategic or operational plans.

•Competition can have an impact on customer acquisition, growth and retention and on credit spreads and product pricing, which can affect market share, deposits and revenues. Our ability to anticipate and respond to technological changes can also impact our ability to respond to customer needs and meet competitive demands.

•Business and operating results can also be affected by widespread manmade, natural and other disasters (including severe weather events), health emergencies, dislocations, geopolitical instabilities or events, terrorist activities, system failures or disruptions, security breaches, cyberattacks, international hostilities, or other extraordinary events beyond ~~PNC's~~PNC’s control through impacts on the economy and financial markets generally or on us or our counterparties, customers or third-party vendors and service providers specifically.

We provide greater detail regarding these as well as other factors in our ~~2021~~2022 Form 10-K and subsequent Form 10-Qs and elsewhere in this Report, including in the Risk Factors and Risk Management sections and the Legal Proceedings and Commitments Notes of the Notes To Consolidated Financial Statements in these reports. Our forward-looking statements may also be subject to other risks and uncertainties, including those discussed elsewhere in this Report or in our other filings with the SEC.

The PNC Financial Services Group, Inc. – Form 10-Q 4341

CONSOLIDATED INCOME STATEMENT

THE PNC FINANCIAL SERVICES GROUP, INC.


Unaudited	Unaudited	Three months ended September 30				Nine months ended September 30				Unaudited	Three months ended September 30				Nine months ended September 30
In millions, except per share data	In millions, except per share data	2022		2021		2022		2021		In millions, except per share data	2023		2022		2023		2022
Interest Income	Interest Income									Interest Income
Loans	Loans	$	3,138	$	2,437	$	7,935	$	6,593	Loans	$	4,643	$	3,138	$	13,424	$	7,935
Investment securities	Investment securities	715		460		1,890		1,350		Investment securities	892		715		2,660		1,890
Other	Other	279		78		502		216		Other	668		279		1,722		502
Total interest income	Total interest income	4,132		2,975		10,327		8,159		Total interest income	6,203		4,132		17,806		10,327
Interest Expense	Interest Expense									Interest Expense
Deposits	Deposits	340		29		455		99		Deposits	1,792		340		4,614		455
Borrowed funds	Borrowed funds	317		90		542		275		Borrowed funds	993		317		2,679		542
Total interest expense	Total interest expense	657		119		997		374		Total interest expense	2,785		657		7,293		997
Net interest income	Net interest income	3,475		2,856		9,330		7,785		Net interest income	3,418		3,475		10,513		9,330
Noninterest Income	Noninterest Income									Noninterest Income
Asset management and brokerage	Asset management and brokerage	357		375		1,099		1,053		Asset management and brokerage	348		357		1,052		1,099
Capital markets related		299		482		960		1,117
Capital markets and advisory										Capital markets and advisory	168		299		643		960
Card and cash management	Card and cash management	671		663		1,962		1,752		Card and cash management	689		671		2,045		1,962
Lending and deposit services	Lending and deposit services	287		305		838		829		Lending and deposit services	315		287		919		838
Residential and commercial mortgage	Residential and commercial mortgage	143		248		463		641		Residential and commercial mortgage	201		143		476		463
Other	Other	317		268		705		907		Other	94		317		481		705
Total noninterest income	Total noninterest income	2,074		2,341		6,027		6,299		Total noninterest income	1,815		2,074		5,616		6,027
Total revenue	Total revenue	5,549		5,197		15,357		14,084		Total revenue	5,233		5,549		16,129		15,357
Provision For (Recapture of) Credit Losses		241		(203)		69		(452)
Provision For Credit Losses										Provision For Credit Losses	129		241		510		69
Noninterest Expense	Noninterest Expense									Noninterest Expense
Personnel	Personnel	1,805		1,986		5,301		5,103		Personnel	1,773		1,805		5,445		5,301
Occupancy	Occupancy	241		248		745		680		Occupancy	244		241		739		745
Equipment	Equipment	344		355		1,026		974		Equipment	347		344		1,046		1,026
Marketing	Marketing	93		103		249		222		Marketing	93		93		276		249
Other	Other	797		895		2,375		2,232		Other	788		797		2,432		2,375
Total noninterest expense	Total noninterest expense	3,280		3,587		9,696		9,211		Total noninterest expense	3,245		3,280		9,938		9,696
Income before income taxes and noncontrolling interests	Income before income taxes and noncontrolling interests	2,028		1,813		5,592		5,325		Income before income taxes and noncontrolling interests	1,859		2,028		5,681		5,592
Income taxes	Income taxes	388		323		1,027		906		Income taxes	289		388		917		1,027

Net income	Net income	1,640		1,490		4,565		4,419		Net income	1,570		1,640		4,764		4,565
Less: Net income attributable to noncontrolling interests	Less: Net income attributable to noncontrolling interests	16		16		52		38		Less: Net income attributable to noncontrolling interests	16		16		50		52
Preferred stock dividends	Preferred stock dividends	65		57		181		162		Preferred stock dividends	104		65		299		181
Preferred stock discount accretion and redemptions	Preferred stock discount accretion and redemptions	1		1		4		3		Preferred stock discount accretion and redemptions	2		1		6		4
Net income attributable to common shareholders	Net income attributable to common shareholders	$	1,558	$	1,416	$	4,328	$	4,216	Net income attributable to common shareholders	$	1,448	$	1,558	$	4,409	$	4,328
Earnings Per Common Share	Earnings Per Common Share									Earnings Per Common Share
Basic	Basic	$	3.78	$	3.31	$	10.39	$	9.84	Basic	$	3.60	$	3.78	$	10.95	$	10.39

Diluted	Diluted	$	3.78	$	3.30	$	10.39	$	9.83	Diluted	$	3.60	$	3.78	$	10.94	$	10.39

Average Common Shares Outstanding	Average Common Shares Outstanding									Average Common Shares Outstanding
Basic	Basic	410		426		414		426		Basic	400		410		401		414
Diluted	Diluted	410		426		415		427		Diluted	400		410		401		415


Pennsylvania						25-1435979
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, par value $5.00	PNC	New York Stock Exchange


			Pages
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited).
Consolidated Income Statement			4442
Consolidated Statement of Comprehensive Income			4543
Consolidated Balance Sheet			4644
Consolidated Statement of Cash Flows			4745
Notes To Consolidated Financial Statements (Unaudited)
Note 1 Accounting Policies			4947
Note 2 ~~Acquisition Activity~~Investment Securities			5156
Note 3 ~~Investment Securities~~			52
~~Note 4~~ Loans and Related Allowance for Credit Losses			5559
Note 54 Loan Sale and Servicing Activities and Variable Interest Entities			65
~~Note 6 Goodwill and Mortgage Servicing Rights~~			67
~~Note 7 Leases~~			68
~~Note 8 Borrowed Funds~~			69
~~Note 9 Commitments~~			70
~~Note 10 Total Equity and Other Comprehensive Income~~			71
Note ~~11 Earnings Per Share~~5 Goodwill and Mortgage Servicing Rights			73
Note ~~12 Fair Value~~6 Leases			74
Note 137 Borrowed Funds			75
Note 8 Commitments			76
Note 9 Total Equity and Other Comprehensive Income			77
Note 10 Earnings Per Share			80
Note 11 Fair Value			81
Note 12 Financial Derivatives			8390
Note 13 Legal Proceedings			96
Note 14 ~~Legal Proceedings~~Segment Reporting			8998
Note 15 ~~Segment Reporting~~			91
~~Note 16~~ Fee-based Revenue from Contracts with Customers			94101
Note 1716 Regulatory Matters			103
Note 1 7 Subsequent Events			96104
Statistical Information (Unaudited)
Average Consolidated Balance Sheet And Net Interest Analysis			97105
Reconciliation of Taxable-Equivalent Net Interest Income (non-GAAP)			99107
Reconciliation of Core Noninterest Expense Guidance (non-GAAP)			107
Glossary			99107
Defined Terms			99107
Acronyms			99107
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A).
Financial Review			1
~~Consolidated Financial Highlights~~			1
Executive Summary			21
Consolidated Income Statement Review			5
Consolidated Balance Sheet Review			9
Business Segments Review			13
Risk Management			21
Recent Regulatory Developments			3837
Critical Accounting Estimates and Judgments			38
Internal Controls and Disclosure Controls and Procedures			4139
Cautionary Statement Regarding Forward-Looking Information			4240
Item 3. Quantitative and Qualitative Disclosures about Market Risk.			21-38, 49-50, 83-89
Item 4. Controls and Procedures.			4139
PART II – OTHER INFORMATION
Item 1. Legal Proceedings.			99108
Item 1A. Risk Factors.			99108
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.			~~100~~108
Item 5. Other Information			108
Item 6. Exhibits.			~~101~~109
Exhibit Index			~~101~~109
Corporate Information			~~101~~109
Signature			~~103~~111


Dollars in millions, except as noted Unaudited	September 30 2022			December 31 2021			September 30 2021
Balance Sheet Data
Assets	$	559,477		$	557,191		$	553,515
Loans	$	315,400		$	288,372		$	290,230
Allowance for loan and lease losses	$	4,581		$	4,868		$	5,355
Interest-earning deposits with banks	$	40,278		$	74,250		$	75,478
Investment securities	$	136,451		$	132,962		$	125,606








Total deposits	$	438,194		$	457,278		$	448,902
Borrowed funds	$	54,633		$	30,784		$	33,471

Total shareholders’ equity	$	46,688		$	55,695		$	56,259
Common shareholders’ equity	$	39,444		$	50,685		$	51,250











Other Selected Ratios
Common equity Tier 1	9.3		%	10.3		%	10.3		%






Loans to deposits	72		%	63		%	65		%
Common shareholders’ equity to total assets	7.1		%	9.1		%	9.3		%


Dollars in millions, except as noted Unaudited	September 30 2023			December 31 2022			September 30 2022
Balance Sheet Highlights (a)
Assets	$	557,334		$	557,263		$	559,477
Loans	$	318,416		$	326,025		$	315,400
Allowance for loan and lease losses	$	4,767		$	4,741		$	4,581
Interest-earning deposits with banks	$	41,484		$	27,320		$	40,278
Investment securities	$	132,387		$	139,334		$	136,451








Total deposits	$	423,609		$	436,282		$	438,194
Borrowed funds	$	66,167		$	58,713		$	54,633

Total shareholders’ equity	$	49,454		$	45,774		$	46,688
Common shareholders’ equity	$	42,215		$	40,028		$	39,444











Other Selected Ratios
Common equity Tier 1	9.8		%	9.1		%	9.3		%






Loans to deposits	75		%	75		%	72		%
Common shareholders’ equity to total assets	7.6		%	7.2		%	7.1		%


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


MD&A TABLE REFERENCE	MD&A TABLE REFERENCE			MD&A TABLE REFERENCE
Table	Table	Description	Page	Table	Description	Page
1	1	Consolidated Financial Highlights	1	1	Summary of Operations, Per Common Share Data and Performance Ratios	2
2	2	Summarized Average Balances and Net Interest Income	6	2	Balance Sheet Highlights and Other Selected Ratios	2
3	3	Noninterest Income	7	3	Summarized Average Balances and Net Interest Income	6
4	4	Noninterest Expense	8	4	Noninterest Income	7
5	5	Provision for (Recapture of) Credit Losses	8	5	Noninterest Expense	8
6	6	Summarized Balance Sheet Data	9	6	Provision for (Recapture of) Credit Losses	8
7	7	Loans	10	7	Summarized Balance Sheet Data	9
8	8	Investment Securities	11	8	Loans	10
9	9	Weighted-Average Expected Maturities of Mortgage and Asset-Backed Debt Securities	12	9	Investment Securities	11
10	10	Details of Funding Sources	12	10	Weighted-Average Expected Maturities of Mortgage and Asset-Backed Debt Securities	11
11	11	Retail Banking Table	14	11	Details of Funding Sources	12
12	12	Corporate & Institutional Banking Table	17	12	Retail Banking Table	14
13	13	Asset Management Group Table	20	13	Corporate & Institutional Banking Table	17
14	14	Details of Loans	21	14	Asset Management Group Table	20
15	15	Commercial and Industrial Loans by Industry	22	15	Details of Loans	21
16	16	Commercial Real Estate Loans by Geography and Property Type	23	16	Commercial and Industrial Loans by Industry	22
17	17	Residential Real Estate Loan Statistics	24	17	Commercial Real Estate Loans by Geography and Property Type	23
18	18	Home Equity Loan Statistics	25	18	Residential Real Estate Loan Statistics	24
19	19	Auto Loan Statistics	25	19	Home Equity Loan Statistics	25
20	20	Nonperforming Assets by Type	26	20	Auto Loan Statistics	25
21	21	Change in Nonperforming Assets	26	21	Nonperforming Assets by Type	26
22	22	Accruing Loans Past Due	27	22	Change in Nonperforming Assets	26
23	23	Summary of Troubled Debt Restructurings	28	23	Accruing Loans Past Due	27
24	24	Allowance for Credit Losses by Loan Class	29	24	Allowance for Credit Losses by Loan Class	28
25	25	Loan Charge-Offs and Recoveries	30	25	Loan Charge-Offs and Recoveries	29
26	26	Senior and Subordinated Debt	31	26	Senior and Subordinated Debt	30
27	27	Credit Ratings for PNC and PNC Bank	33	27	Contingent Liquidity Sources	30
28	28	Basel III Capital	34	28	Parent Company Notes Issued	31
29	29	Interest Sensitivity Analysis	35	29	Credit Ratings and Outlook	32
30	30	Net Interest Income Sensitivity to Alternative Rate Scenarios	35	30	Basel III Capital	33
31	31	Alternate Interest Rate Scenarios: One Year Forward	36	31	Interest Sensitivity Analysis	34
32	32	Equity Investments Summary	37	32	Net Interest Income Sensitivity to Alternative Rate Scenarios	34
33	33	Key Macroeconomic Variables in CECL Weighted-Average Scenarios	39	33	Alternate Interest Rate Scenarios: One Year Forward	35
34				34	Equity Investments Summary	36
35				35	Key Macroeconomic Variables in CECL Weighted-Average Scenarios	39


Dollars in millions, except per share data Unaudited	Three months ended									Nine months ended
	September 30			June 30			September 30			September 30			September 30
	2022			2022			2021			2022			2021
Financial Results (a)

Net interest income	$	3,475		$	3,051		$	2,856		$	9,330		$	7,785
Noninterest income	2,074			2,065			2,341			6,027			6,299
Total revenue	5,549			5,116			5,197			15,357			14,084
Provision for (recapture of) credit losses	241			36			(203)			69			(452)
Noninterest expense	3,280			3,244			3,587			9,696			9,211
Income before income taxes and noncontrolling interests	$	2,028		$	1,836		$	1,813		$	5,592		$	5,325
Income taxes	388			340			323			1,027			906




Net income	$	1,640		$	1,496		$	1,490		$	4,565		$	4,419




Net income attributable to common shareholders	$	1,558		$	1,409		$	1,416		$	4,328		$	4,216
Per Common Share
Basic	$	3.78		$	3.39		$	3.31		$	10.39		$	9.84


Diluted	$	3.78		$	3.39		$	3.30		$	10.39		$	9.83




Book value per common share	$	97.59		$	101.39		$	121.16
Performance Ratios
Net interest margin (b)	2.82		%	2.50		%	2.27		%	2.54		%	2.28		%
Noninterest income to total revenue	37		%	40		%	45		%	39		%	45		%
Efficiency	59		%	63		%	69		%	63		%	65		%
Return on:
Average common shareholders’ equity	14.97		%	13.52		%	10.95		%	13.31		%	11.17		%
Average assets	1.19		%	1.10		%	1.06		%	1.11		%	1.16		%


		September 30, 2022						June 30, 2022						September 30, 2023						June 30, 2023
Three months ended Dollars in millions	Three months ended Dollars in millions	Average Balances		Average Yields/ Rates		Interest Income/ Expense		Average Balances		Average Yields/ Rates		Interest Income/ Expense			Three months ended Dollars in millions	Average Balances		Average Yields/ Rates		Interest Income/ Expense		Average Balances		Average Yields/ Rates		Interest Income/ Expense
Assets	Assets														Assets
Interest-earning assets	Interest-earning assets														Interest-earning assets
Investment securities	Investment securities	$	136,990	2.10	%	$	720	$	134,724	1.89	%	$	636		Investment securities	$	139,663	2.57	%	$	898	$	141,038	2.52	%	$	889
Loans	Loans	313,026		3.98	%	3,162		304,790		3.29	%	2,524			Loans	319,504		5.75	%	4,673		324,534		5.57	%	4,554
Interest-earning deposits with banks	Interest-earning deposits with banks	31,892		2.32	%	185		39,689		0.79	%	78			Interest-earning deposits with banks	38,352		5.44	%	522		31,433		5.10	%	400
Other	Other	9,560		3.94	%	94		9,935		2.76	%	68			Other	8,777		6.66	%	146		9,215		5.96	%	138
Total interest-earning assets/interest income	Total interest-earning assets/interest income	$	491,468	3.35	%	4,161		$	489,138	2.69	%	3,306			Total interest-earning assets/interest income	$	506,296	4.87	%	6,239		$	506,220	4.70	%	5,981
Liabilities	Liabilities														Liabilities
Interest-bearing liabilities	Interest-bearing liabilities														Interest-bearing liabilities
Interest-bearing deposits	Interest-bearing deposits	$	298,073	0.45	%	340		$	297,096	0.12	%	88			Interest-bearing deposits	$	314,555	2.26	%	1,792		$	312,559	1.96	%	1,531
Borrowed funds	Borrowed funds	44,261		2.81	%	317		35,656		1.58	%	142			Borrowed funds	67,465		5.77	%	993		65,692		5.44	%	903
Total interest-bearing liabilities/interest expense	Total interest-bearing liabilities/interest expense	$	342,334	0.75	%	657		$	332,752	0.27	%	230			Total interest-bearing liabilities/interest expense	$	382,020	2.86	%	2,785		$	378,251	2.56	%	2,434
Net interest margin/income (non-GAAP)	Net interest margin/income (non-GAAP)			2.82	%	3,504				2.50	%	3,076			Net interest margin/income (non-GAAP)			2.71	%	3,454				2.79	%	3,547
Taxable-equivalent adjustments	Taxable-equivalent adjustments					(29)						(25)			Taxable-equivalent adjustments					(36)						(37)
Net interest income (GAAP)	Net interest income (GAAP)					$	3,475					$	3,051		Net interest income (GAAP)					$	3,418					$	3,510


		September 30, 2022						September 30, 2021							September 30, 2023						September 30, 2022
Nine months ended Dollars in millions	Nine months ended Dollars in millions	Average Balances		Average Yields/ Rates		Interest Income/ Expense		Average Balances		Average Yields/ Rates		Interest Income/ Expense		Nine months ended Dollars in millions	Average Balances		Average Yields/ Rates		Interest Income/ Expense		Average Balances		Average Yields/ Rates		Interest Income/ Expense
Assets	Assets													Assets
Interest-earning assets	Interest-earning assets													Interest-earning assets
Investment securities	Investment securities	$	135,215	1.88	%	$	1,904	$	105,287	1.73	%	$	1,366	Investment securities	$	141,350	2.52	%	$	2,678	$	135,215	1.88	%	$	1,904
Loans	Loans	302,921		3.50	%	7,997		261,884		3.36	%	6,629		Loans	323,166		5.54	%	13,517		302,921		3.50	%	7,997
Interest-earning deposits with banks	Interest-earning deposits with banks	44,641		0.87	%	292		81,383		0.12	%	74		Interest-earning deposits with banks	34,629		5.05	%	1,312		44,641		0.87	%	292
Other	Other	9,637		2.92	%	210		8,345		2.27	%	142		Other	8,933		6.12	%	410		9,637		2.92	%	210
Total interest-earning assets/interest income	Total interest-earning assets/interest income	$	492,414	2.80	%	10,403		$	456,899	2.38	%	8,211		Total interest-earning assets/interest income	$	508,078	4.68	%	17,917		$	492,414	2.80	%	10,403
Liabilities	Liabilities													Liabilities
Interest-bearing liabilities	Interest-bearing liabilities													Interest-bearing liabilities
Interest-bearing deposits	Interest-bearing deposits	$	298,232	0.20	%	455		$	273,498	0.05	%	99		Interest-bearing deposits	$	314,055	1.96	%	4,614		$	298,232	0.20	%	455
Borrowed funds	Borrowed funds	36,794		1.95	%	542		34,562		1.05	%	275		Borrowed funds	65,392		5.41	%	2,679		36,794		1.95	%	542
Total interest-bearing liabilities/interest expense	Total interest-bearing liabilities/interest expense	$	335,026	0.39	%	997		$	308,060	0.16	%	374		Total interest-bearing liabilities/interest expense	$	379,447	2.54	%	7,293		$	335,026	0.39	%	997
Net interest margin/income (non-GAAP)	Net interest margin/income (non-GAAP)			2.54	%	9,406				2.28	%	7,837		Net interest margin/income (non-GAAP)			2.78	%	10,624				2.54	%	9,406
Taxable-equivalent adjustments	Taxable-equivalent adjustments					(76)						(52)		Taxable-equivalent adjustments					(111)						(76)
Net interest income (GAAP)	Net interest income (GAAP)					$	9,330					$	7,785	Net interest income (GAAP)					$	10,513					$	9,330


		September 30		December 31		Change					September 30		December 31		Change
Dollars in millions	Dollars in millions	2022		2021		$		%		Dollars in millions	2023		2022		$		%
Assets	Assets									Assets
Interest-earning deposits with banks	Interest-earning deposits with banks	$	40,278	$	74,250	$	(33,972)	(46)	%	Interest-earning deposits with banks	$	41,484	$	27,320	$	14,164	52	%
Loans held for sale	Loans held for sale	1,126		2,231		(1,105)		(50)	%	Loans held for sale	923		1,010		(87)		(9)	%
Investment securities	Investment securities	136,451		132,962		3,489		3	%	Investment securities	132,387		139,334		(6,947)		(5)	%
Loans	Loans	315,400		288,372		27,028		9	%	Loans	318,416		326,025		(7,609)		(2)	%
Allowance for loan and lease losses	Allowance for loan and lease losses	(4,581)		(4,868)		287		6	%	Allowance for loan and lease losses	(4,767)		(4,741)		(26)		(1)	%
Mortgage servicing rights	Mortgage servicing rights	3,206		1,818		1,388		76	%	Mortgage servicing rights	4,006		3,423		583		17	%
Goodwill	Goodwill	10,987		10,916		71		1	%	Goodwill	10,987		10,987				—
Other	Other	56,610		51,510		5,100		10	%	Other	53,898		53,905		(7)		—
Total assets	Total assets	$	559,477	$	557,191	$	2,286	—		Total assets	$	557,334	$	557,263	$	71	—
Liabilities	Liabilities									Liabilities
Deposits	Deposits	$	438,194	$	457,278	$	(19,084)	(4)	%	Deposits	$	423,609	$	436,282	$	(12,673)	(3)	%
Borrowed funds	Borrowed funds	54,633		30,784		23,849		77	%	Borrowed funds	66,167		58,713		7,454		13	%
Allowance for unfunded lending related commitments	Allowance for unfunded lending related commitments	682		662		20		3	%	Allowance for unfunded lending related commitments	640		694		(54)		(8)	%
Other	Other	19,245		12,741		6,504		51	%	Other	17,437		15,762		1,675		11	%
Total liabilities	Total liabilities	512,754		501,465		11,289		2	%	Total liabilities	507,853		511,451		(3,598)		(1)	%
Equity	Equity									Equity
Total shareholders’ equity	Total shareholders’ equity	46,688		55,695		(9,007)		(16)	%	Total shareholders’ equity	49,454		45,774		3,680		8	%
Noncontrolling interests	Noncontrolling interests	35		31		4		13	%	Noncontrolling interests	27		38		(11)		(29)	%
Total equity	Total equity	46,723		55,726		(9,003)		(16)	%	Total equity	49,481		45,812		3,669		8	%
Total liabilities and equity	Total liabilities and equity	$	559,477	$	557,191	$	2,286	—		Total liabilities and equity	$	557,334	$	557,263	$	71	—


		September 30, 2022				December 31, 2021				Ratings as of September 30, 2022 (a)											September 30, 2023				December 31, 2022
Dollars in millions	Dollars in millions	Amortized Cost (b)		Fair Value		Amortized Cost (b)		Fair Value		AAA/ AA		A		BBB		BB and Lower		No Rating		Dollars in millions	Amortized Cost (b)		Fair Value		Amortized Cost (b)		Fair Value
U.S. Treasury and government agencies	U.S. Treasury and government agencies	$	47,213	$	44,622	$	47,024	$	47,054	100	%									U.S. Treasury and government agencies	$	43,879	$	41,156	$	45,767	$	43,330
Agency residential mortgage-backed	Agency residential mortgage-backed	74,145		67,149		67,326		67,632		100	%									Agency residential mortgage-backed	74,567		65,233		77,385		71,073
Non-agency residential mortgage-backed	Non-agency residential mortgage-backed	1,006		1,129		927		1,158		8	%			1	%	37	%	54	%	Non-agency residential mortgage-backed	870		941		973		1,074
Agency commercial mortgage-backed	Agency commercial mortgage-backed	2,593		2,391		1,740		1,773		100	%									Agency commercial mortgage-backed	2,648		2,401		2,693		2,501
Non-agency commercial mortgage-backed (c)	Non-agency commercial mortgage-backed (c)	3,109		3,026		3,423		3,436		85	%	1	%	2	%			12	%	Non-agency commercial mortgage-backed (c)	2,438		2,352		2,992		2,883
Asset-backed (d)	Asset-backed (d)	6,671		6,536		6,380		6,409		96	%	1	%			2	%	1	%	Asset-backed (d)	7,298		7,215		7,291		7,183
Other (e)	Other (e)	6,505		6,133		5,404		5,596		50	%	29	%	18	%			3	%	Other (e)	6,087		5,739		6,642		6,394
Total investment securities (f)	Total investment securities (f)	$	141,242	$	130,986	$	132,224	$	133,058	97	%	1	%	1	%			1	%	Total investment securities (f)	$	137,787	$	125,037	$	143,743	$	134,438


September 30, 2023			Years
Agency residential mortgage-backed			7.8
Non-agency residential mortgage-backed			10.1
Agency commercial mortgage-backed			5.1
Non-agency commercial mortgage-backed			1.1
Asset-backed			2.2


~~September 30, 2022~~			~~Years~~
~~Agency residential mortgage-backed~~			~~7.4~~
~~Non-agency residential mortgage-backed~~			~~9.6~~
~~Agency commercial mortgage-backed~~			~~5.3~~
~~Non-agency commercial mortgage-backed~~			~~1.5~~
~~Asset-backed~~			~~2.6~~


		September 30, 2022				December 31, 2021					September 30, 2023				December 31, 2022
Dollars in millions	Dollars in millions	Amount		% of Total		Amount		% of Total		Dollars in millions	Amount		% of Total		Amount		% of Total
Commercial and industrial	Commercial and industrial									Commercial and industrial
Manufacturing	Manufacturing	$	28,629	16	%	$	22,597	15	%	Manufacturing	$	29,163	17	%	$	30,845	17	%
Retail/wholesale trade	Retail/wholesale trade	27,532		16		22,803		15		Retail/wholesale trade	28,284		16		29,176		16
Financial services										Financial services	22,770		13		21,320		12
Service providers	Service providers	22,043		13		20,750		14		Service providers	21,680		12		23,548		13
Financial services		21,590		12		17,950		12
Real estate related (a)	Real estate related (a)	17,513		10		15,123		10		Real estate related (a)	16,182		9		17,780		10
Technology, media & telecommunications	Technology, media & telecommunications	11,366		7		10,070		7		Technology, media & telecommunications	10,989		6		11,845		7
Health care	Health care	10,420		6		9,944		7		Health care	10,092		6		10,649		6
Transportation and warehousing	Transportation and warehousing	7,977		5		7,136		5		Transportation and warehousing	7,891		5		7,858		4
Other industries	Other industries	26,743		15		26,560		15		Other industries	27,112		16		29,198		15
Total commercial and industrial loans	Total commercial and industrial loans	$	173,813	100	%	$	152,933	100	%	Total commercial and industrial loans	$	174,163	100	%	$	182,219	100	%


		September 30, 2022				December 31, 2021					September 30, 2023				December 31, 2022
Dollars in millions	Dollars in millions	Amount		% of Total		Amount		% of Total		Dollars in millions	Amount		% of Total		Amount		% of Total
Geography (a)	Geography (a)									Geography (a)
California	California	$	5,908	17	%	$	5,561	16	%	California	$	6,199	17	%	$	6,224	17	%
Florida										Florida	3,710		10		3,275		9
Texas	Texas	3,761		11		3,458		10		Texas	3,705		10		3,871		11
Florida		3,085		9		2,987		9
Pennsylvania										Pennsylvania	1,702		5		1,638		5
Virginia	Virginia	1,733		5		1,720		5		Virginia	1,573		4		1,638		5
Pennsylvania		1,594		4		1,482		4
Maryland	Maryland	1,527		4		1,557		5		Maryland	1,401		4		1,496		4
Illinois	Illinois	1,413		4		970		3		Illinois	1,256		4		1,321		4
Colorado	Colorado	1,239		3		1,126		3		Colorado	1,218		3		1,336		4
Ohio	Ohio	1,212		3		1,219		4		Ohio	1,176		3		1,236		3
Arizona	Arizona	1,114		3		855		3		Arizona	1,171		3		1,040		3
Other	Other	13,006		37		13,080		38		Other	12,665		37		13,241		35
Total commercial real estate loans	Total commercial real estate loans	$	35,592	100	%	$	34,015	100	%	Total commercial real estate loans	$	35,776	100	%	$	36,316	100	%
Property Type (a)	Property Type (a)									Property Type (a)
Multifamily	Multifamily	$	13,272	37	%	$	10,581	31	%	Multifamily	$	15,336	43	%	$	13,738	38	%
Office	Office	9,268		26		9,547		28		Office	8,569		24		9,123		25
Industrial/warehouse	Industrial/warehouse	3,509		10		2,413		7		Industrial/warehouse	3,984		11		4,035		11
Retail	Retail	2,857		8		3,570		10		Retail	2,604		7		2,855		8
Hotel/motel										Hotel/motel	1,796		5		1,896		5
Seniors housing	Seniors housing	2,289		6		2,602		8		Seniors housing	1,765		5		2,228		6
Hotel/motel		1,950		5		2,008		6
Mixed use	Mixed use	704		2		724		2		Mixed use	381		1		701		2
Other	Other	1,743		6		2,570		8		Other	1,341		4		1,740		5
Total commercial real estate loans	Total commercial real estate loans	$	35,592	100	%	$	34,015	100	%	Total commercial real estate loans	$	35,776	100	%	$	36,316	100	%


		September 30, 2022				December 31, 2021					September 30, 2023				December 31, 2022
Dollars in millions	Dollars in millions	Amount		% of Total		Amount		% of Total		Dollars in millions	Amount		% of Total		Amount		% of Total
Geography (a)	Geography (a)									Geography (a)
California	California	$	18,121	40	%	$	15,041	38	%	California	$	19,660	42	%	$	18,609	41	%
Texas	Texas	4,224		9		4,397		11		Texas	4,070		9		4,194		9
Washington										Washington	3,408		7		3,009		7
Florida	Florida	3,337		7		3,124		8		Florida	3,369		7		3,360		7
Washington		2,842		6		1,909		5
New Jersey	New Jersey	1,893		4		1,660		4		New Jersey	1,919		4		1,925		4
New York	New York	1,514		3		1,279		3		New York	1,557		3		1,558		3
Arizona	Arizona	1,431		3		1,435		4		Arizona	1,443		3		1,436		3
Pennsylvania										Pennsylvania	1,219		3		1,188		3
Colorado	Colorado	1,174		3		1,145		3		Colorado	1,199		3		1,192		3
Pennsylvania		1,173		3		1,069		3
Illinois		959		2		957		2
Virginia										Virginia	987		2		960		2
Other	Other	8,389		20		7,696		19		Other	8,528		17		8,458		18
Total residential real estate loans	Total residential real estate loans	$	45,057	100	%	$	39,712	100	%	Total residential real estate loans	$	47,359	100	%	$	45,889	100	%
		September 30, 2022				December 31, 2021					September 30, 2023				December 31, 2022
Weighted-average loan origination statistics (b)	Weighted-average loan origination statistics (b)									Weighted-average loan origination statistics (b)
Loan origination FICO score	Loan origination FICO score			771				775		Loan origination FICO score			772				770
LTV of loan originations	LTV of loan originations			69	%			67	%	LTV of loan originations			73	%			71	%


		September 30, 2022				December 31, 2021					September 30, 2023				December 31, 2022
Dollars in millions	Dollars in millions	Amount		% of Total		Amount		% of Total		Dollars in millions	Amount		% of Total		Amount		% of Total
Geography (a)	Geography (a)									Geography (a)
Pennsylvania	Pennsylvania	$	5,093	20	%	$	5,108	21	%	Pennsylvania	$	4,807	18	%	$	5,051	19	%
New Jersey	New Jersey	3,230		13		3,117		13		New Jersey	3,207		12		3,266		13
Ohio	Ohio	2,370		9		2,398		10		Ohio	2,272		9		2,352		9
Florida	Florida	1,972		8		1,701		7		Florida	2,202		8		2,082		8
California										California	1,513		6		1,247		5
Maryland										Maryland	1,238		5		1,254		5
Michigan	Michigan	1,263		5		1,246		5		Michigan	1,225		5		1,263		5
Maryland		1,239		5		1,206		5
Texas										Texas	1,208		5		1,144		4
Illinois	Illinois	1,130		4		1,154		5		Illinois	1,083		4		1,126		4
Texas		1,061		4		978		4
California		1,054		4		705		3
North Carolina	North Carolina	965		4		918		4		North Carolina	1,005		4		995		4
Other	Other	5,990		24		5,530		23		Other	6,399		24		6,203		24
Total home equity loans	Total home equity loans	$	25,367	100	%	$	24,061	100	%	Total home equity loans	$	26,159	100	%	$	25,983	100	%
Lien type	Lien type									Lien type
1st lien	1st lien			60	%			62	%	1st lien			53	%			58	%
2nd lien	2nd lien			40				38		2nd lien			47				42
Total	Total			100	%			100	%	Total			100	%			100	%
Weighted-average loan origination statistics (b)	Weighted-average loan origination statistics (b)	September 30, 2022				December 31, 2021				Weighted-average loan origination statistics (b)	September 30, 2023				December 31, 2022
Loan origination FICO score	Loan origination FICO score			775				782		Loan origination FICO score			772				774
LTV of loan originations	LTV of loan originations			67	%			66	%	LTV of loan originations			65	%			67	%


(Unaudited)	(Unaudited)											(Unaudited)
Nine months ended September 30	Nine months ended September 30							Change				Nine months ended September 30							Change
Dollars in millions, except as noted	Dollars in millions, except as noted	2022			2021			$		%		Dollars in millions, except as noted	2023			2022			$		%
Income Statement	Income Statement											Income Statement
Net interest income	Net interest income	$	5,210		$	4,572		$	638	14	%	Net interest income	$	7,305		$	5,210		$	2,095	40	%
Noninterest income	Noninterest income	2,218			2,022			196		10	%	Noninterest income	2,229			2,218			11		—
Total revenue	Total revenue	7,428			6,594			834		13	%	Total revenue	9,534			7,428			2,106		28	%
Provision for (recapture of) credit losses		66			(156)			222		*
Provision for credit losses												Provision for credit losses	266			66			200		*
Noninterest expense	Noninterest expense	5,706			5,042			664		13	%	Noninterest expense	5,707			5,706			1		—
Pretax earnings	Pretax earnings	1,656			1,708			(52)		(3)	%	Pretax earnings	3,561			1,656			1,905		115	%
Income taxes	Income taxes	389			396			(7)		(2)	%	Income taxes	834			389			445		114	%
Noncontrolling interests	Noncontrolling interests	45			26			19		73	%	Noncontrolling interests	32			45			(13)		(29)	%
Earnings	Earnings	$	1,222		$	1,286		$	(64)	(5)	%	Earnings	$	2,695		$	1,222		$	1,473	121	%
Average Balance Sheet	Average Balance Sheet											Average Balance Sheet
Loans held for sale	Loans held for sale	$	991		$	1,296		$	(305)	(24)	%	Loans held for sale	$	597		$	991		$	(394)	(40)	%
Loans	Loans											Loans
Consumer	Consumer											Consumer
Residential real estate	Residential real estate	$	33,088		$	23,323		$	9,765	42	%	Residential real estate	$	35,225		$	33,088		$	2,137	6	%
Home equity	Home equity	22,916			22,324			592		3	%	Home equity	24,608			22,916			1,692		7	%
Automobile	Automobile	15,638			15,398			240		2	%	Automobile	14,966			15,638			(672)		(4)	%
Credit card	Credit card	6,532			6,070			462		8	%	Credit card	6,999			6,532			467		7	%
Education	Education	2,422			2,820			(398)		(14)	%	Education	2,119			2,422			(303)		(13)	%
Other consumer	Other consumer	2,204			2,326			(122)		(5)	%	Other consumer	1,934			2,204			(270)		(12)	%
Total consumer	Total consumer	82,800			72,261			10,539		15	%	Total consumer	85,851			82,800			3,051		4	%
Commercial	Commercial	11,176			14,819			(3,643)		(25)	%	Commercial	11,628			11,176			452		4	%
Total loans	Total loans	$	93,976		$	87,080		$	6,896	8	%	Total loans	$	97,479		$	93,976		$	3,503	4	%
Total assets	Total assets	$	113,157		$	103,820		$	9,337	9	%	Total assets	$	114,975		$	113,157		$	1,818	2	%
Deposits	Deposits											Deposits
Noninterest-bearing	Noninterest-bearing	$	65,026		$	55,107		$	9,919	18	%	Noninterest-bearing	$	59,448		$	65,026		$	(5,578)	(9)	%
Interest-bearing	Interest-bearing	200,918			179,567			21,351		12	%	Interest-bearing	198,356			200,918			(2,562)		(1)	%
Total deposits	Total deposits	$	265,944		$	234,674		$	31,270	13	%	Total deposits	$	257,804		$	265,944		$	(8,140)	(3)	%
Performance Ratios	Performance Ratios											Performance Ratios
Return on average assets	Return on average assets	1.44		%	1.66		%					Return on average assets	3.13		%	1.44		%
Noninterest income to total revenue	Noninterest income to total revenue	30		%	31		%					Noninterest income to total revenue	23		%	30		%
Efficiency	Efficiency	77		%	76		%					Efficiency	60		%	77		%


At or for nine months ended September 30	At or for nine months ended September 30							Change				At or for nine months ended September 30							Change
Dollars in millions, except as noted	Dollars in millions, except as noted	2022			2021			$		%		Dollars in millions, except as noted	2023			2022			$		%
Supplemental Noninterest Income Information	Supplemental Noninterest Income Information											Supplemental Noninterest Income Information
Asset management and brokerage	Asset management and brokerage	$	400		$	334		$	66	20	%	Asset management and brokerage	$	384		$	400		$	(16)	(4)	%
Card and cash management	Card and cash management	$	1,003		$	934		$	69	7	%	Card and cash management	$	997		$	1,003		$	(6)	(1)	%
Lending and deposit services	Lending and deposit services	$	498		$	462		$	36	8	%	Lending and deposit services	$	550		$	498		$	52	10	%
Residential and commercial mortgage	Residential and commercial mortgage	$	208		$	355		$	(147)	(41)	%	Residential and commercial mortgage	$	307		$	208		$	99	48	%
Residential Mortgage Information	Residential Mortgage Information											Residential Mortgage Information
Residential mortgage servicing statistics (in billions, except as noted) (a)	Residential mortgage servicing statistics (in billions, except as noted) (a)											Residential mortgage servicing statistics (in billions, except as noted) (a)
Serviced portfolio balance (b)	Serviced portfolio balance (b)	$	170		$	139		$	31	22	%	Serviced portfolio balance (b)	$	213		$	170		$	43	25	%
Serviced portfolio acquisitions	Serviced portfolio acquisitions	$	50		$	42		$	8	19	%	Serviced portfolio acquisitions	$	34		$	50		$	(16)	(32)	%
MSR asset value (b)	MSR asset value (b)	$	2.1		$	1.1		$	1.0	91	%	MSR asset value (b)	$	2.8		$	2.1		$	0.7	33	%
MSR capitalization value (in basis points) (b)	MSR capitalization value (in basis points) (b)	122			81			41		51	%	MSR capitalization value (in basis points) (b)	133			122			11		9	%
Servicing income: (in millions)	Servicing income: (in millions)											Servicing income: (in millions)
Servicing fees, net (c)	Servicing fees, net (c)	$	119		$	20		$	99	*		Servicing fees, net (c)	$	212		$	119		$	93	78	%
Mortgage servicing rights valuation, net of economic hedge	Mortgage servicing rights valuation, net of economic hedge	$	(15)		$	62		$	(77)	(124)	%	Mortgage servicing rights valuation, net of economic hedge	$	42		$	(15)		$	57	*
Residential mortgage loan statistics	Residential mortgage loan statistics											Residential mortgage loan statistics
Loan origination volume (in billions)	Loan origination volume (in billions)	$	13.0		$	18.2		$	(5.2)	(29)	%	Loan origination volume (in billions)	$	5.9		$	13.0		$	(7.1)	(55)	%
Loan sale margin percentage	Loan sale margin percentage	2.13		%	2.95		%					Loan sale margin percentage	2.31		%	2.13		%
Percentage of originations represented by:	Percentage of originations represented by:											Percentage of originations represented by:
Purchase volume (d)	Purchase volume (d)	64		%	45		%					Purchase volume (d)	87		%	64		%
Refinance volume	Refinance volume	36		%	55		%					Refinance volume	13		%	36		%
Other Information (b)	Other Information (b)											Other Information (b)
Customer-related statistics (average)	Customer-related statistics (average)											Customer-related statistics (average)
Non-teller deposit transactions (e)	Non-teller deposit transactions (e)	64		%	66		%					Non-teller deposit transactions (e)	66		%	64		%
Digital consumer customers (f)	Digital consumer customers (f)	78		%	80		%					Digital consumer customers (f)	77		%	78		%
Credit-related statistics	Credit-related statistics											Credit-related statistics
Nonperforming assets	Nonperforming assets	$	1,027		$	1,220		$	(193)	(16)	%	Nonperforming assets	$	856		$	1,027		$	(171)	(17)	%
Net charge-offs - loans and leases	Net charge-offs - loans and leases	$	327		$	269		$	58	22	%	Net charge-offs - loans and leases	$	335		$	327		$	8	2	%
Other statistics	Other statistics											Other statistics
ATMs	ATMs	9,169			9,572			(403)		(4)	%	ATMs	8,476			9,169			(693)		(8)	%
Branches (g)	Branches (g)	2,527			2,712			(185)		(7)	%	Branches (g)	2,303			2,527			(224)		(9)	%
Brokerage account client assets (in billions) (h)	Brokerage account client assets (in billions) (h)	$	67		$	76		$	(9)	(12)	%	Brokerage account client assets (in billions) (h)	$	73		$	67		$	6	9	%


In millions	2022		2021
January 1	$	2,506	$	2,337
Acquired nonperforming assets (a)			880
New nonperforming assets	1,177		821
Charge-offs and valuation adjustments	(196)		(202)
Principal activity, including paydowns and payoffs	(729)		(783)
Asset sales and transfers to loans held for sale	(30)		(131)
Returned to performing status	(627)		(363)
September 30	$	2,101	$	2,559


		Amount								% of Total Loans Outstanding					Amount								% of Total Loans Outstanding
		September 30 2022		December 31 2021		Change				September 30 2022		December 31 2021			September 30 2023		December 31 2022		Change				September 30 2023		December 31 2022
Dollars in millions	Dollars in millions					$		%						Dollars in millions					$		%
Early stage loan delinquencies	Early stage loan delinquencies													Early stage loan delinquencies
Accruing loans past due 30 to 59 days	Accruing loans past due 30 to 59 days	$	879	$	1,011	$	(132)	(13)	%	0.28	%	0.35	%	Accruing loans past due 30 to 59 days	$	607	$	747	$	(140)	(19)	%	0.19	%	0.23	%
Accruing loans past due 60 to 89 days	Accruing loans past due 60 to 89 days	268		355		(87)		(25)	%	0.08	%	0.12	%	Accruing loans past due 60 to 89 days	253		261		(8)		(3)	%	0.08	%	0.08	%
Total early stage loan delinquencies	Total early stage loan delinquencies	1,147		1,366		(219)		(16)	%	0.36	%	0.47	%	Total early stage loan delinquencies	860		1,008		(148)		(15)	%	0.27	%	0.31	%
Late stage loan delinquencies	Late stage loan delinquencies													Late stage loan delinquencies
Accruing loans past due 90 days or more	Accruing loans past due 90 days or more	479		619		(140)		(23)	%	0.15	%	0.21	%	Accruing loans past due 90 days or more	427		482		(55)		(11)	%	0.13	%	0.15	%
Total accruing loans past due	Total accruing loans past due	$	1,626	$	1,985	$	(359)	(18)	%	0.52	%	0.69	%	Total accruing loans past due	$	1,287	$	1,490	$	(203)	(14)	%	0.40	%	0.46	%


Nine months ended September 30	Nine months ended September 30	Gross Charge-offs		Recoveries		Net Charge-offs / (Recoveries)		% of Average Loans (Annualized)		Nine months ended September 30	Gross Charge-offs		Recoveries		Net Charge-offs / (Recoveries)		% of Average Loans (Annualized)
Dollars in millions	Dollars in millions									Dollars in millions
2023										2023
Commercial										Commercial
Commercial and industrial										Commercial and industrial	$	192	$	98	$	94	0.07	%
Commercial real estate										Commercial real estate	124		4		120		0.45	%
Equipment lease financing										Equipment lease financing	11		8		3		0.06	%
Total commercial										Total commercial	327		110		217		0.13	%
Consumer										Consumer
Residential real estate										Residential real estate	6		10		(4)		(0.01)	%
Home equity										Home equity	15		36		(21)		(0.11)	%
Automobile										Automobile	91		77		14		0.12	%
Credit card										Credit card	232		32		200		3.82	%
Education										Education	13		5		8		0.50	%
Other consumer										Other consumer	124		28		96		2.73	%
Total consumer										Total consumer	481		188		293		0.39	%
Total										Total	$	808	$	298	$	510	0.21	%
2022	2022									2022
Commercial	Commercial									Commercial
Commercial and industrial	Commercial and industrial	$	136	$	68	$	68	0.06	%	Commercial and industrial	$	136	$	68	$	68	0.06	%
Commercial real estate	Commercial real estate	22		3		19		0.07	%	Commercial real estate	22		3		19		0.07	%
Equipment lease financing	Equipment lease financing	4		7		(3)		(0.07)	%	Equipment lease financing	4		7		(3)		(0.07)	%
Total commercial	Total commercial	162		78		84		0.05	%	Total commercial	162		78		84		0.05	%
Consumer	Consumer									Consumer
Residential real estate	Residential real estate	9		15		(6)		(0.02)	%	Residential real estate	9		15		(6)		(0.02)	%
Home equity	Home equity	9		58		(49)		(0.27)	%	Home equity	9		58		(49)		(0.27)	%
Automobile	Automobile	118		100		18		0.15	%	Automobile	118		100		18		0.15	%
Credit card	Credit card	194		43		151		3.09	%	Credit card	194		43		151		3.09	%
Education	Education	12		4		8		0.44	%	Education	12		4		8		0.44	%
Other consumer	Other consumer	164		31		133		3.20	%	Other consumer	164		31		133		3.20	%
Total consumer	Total consumer	506		251		255		0.35	%	Total consumer	506		251		255		0.35	%
Total	Total	$	668	$	329	$	339	0.15	%	Total	$	668	$	329	$	339	0.15	%
2021
Commercial
Commercial and industrial		$	350	$	68	$	282	0.27	%
Commercial real estate		34		5		29		0.12	%
Equipment lease financing		9		8		1		0.02	%
Total commercial		393		81		312		0.23	%
Consumer
Residential real estate		11		20		(9)		(0.04)	%
Home equity		16		63		(47)		(0.26)	%
Automobile		120		117		3		0.03	%
Credit card		196		36		160		3.52	%
Education		11		6		5		0.24	%
Other consumer		130		21		109		2.77	%
Total consumer		484		263		221		0.36	%
Total		$	877	$	344	$	533	0.27	%


In billions	~~2022~~2023
January 1	$	~~27.7~~23.0
Issuances	~~0.9~~7.0
Calls and maturities	~~(5.8)~~(2.3)
Other	~~(2.2)~~(0.6)

September 30	$	~~20.6~~27.1


Issuance Date	Amount	Description of Issuance
August 18, 2023	$750 million	$750 million of senior fixed-to-floating notes with a maturity date of August 18, 2034. Interest is payable semi-annually in arrears at a fixed rate of 5.939% per annum, on February 18 and August 18 of each year, beginning on February 18, 2024. Beginning on August 18, 2033, interest is payable 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 Prospectus Supplement), plus 1.946%, on November 18, 2033, February 18, 2034, May 18, 2034 and at the maturity date.


	September 30, ~~2022~~2023
	Moody’s (a)	Standard & Poor’s	Fitch
~~PNC~~Parent Company
Senior debt	A3	A-	A
Subordinated debt	A3	BBB+	A-
Preferred stock	Baa2	BBB-	BBB
PNC Bank
Senior debt	A2	A	A+
Subordinated debt	A3	A-	A
Long-term deposits	Aa3	A	AA-
Short-term deposits	P-1	A-1	F1+
Short-term notes	P-1	A-1	F1
PNC
Agency rating outlook	Negative	Stable	Stable


	Third Quarter 2022		Third Quarter 2021
Net Interest Income Sensitivity Simulation
Effect on net interest income in first year from gradual interest rate change over the following 12 months of:
100 basis point increase	2.5	%	4.5	%
100 basis point decrease (a)	(2.5)	%	N/A
Effect on net interest income in second year from gradual interest rate change over the preceding 12 months of:
100 basis point increase	4.5	%	11.3	%
100 basis point decrease (a)	(4.8)	%	N/A


	Third Quarter 2023		Third Quarter 2022
Net Interest Income Sensitivity Simulation
Effect on net interest income in first year from gradual parallel interest rate change over the following 12 months of:
100 basis point increase	(0.4)	%	2.5	%
100 basis point decrease	0.3	%	(2.5)	%
Effect on net interest income in second year from gradual parallel interest rate change over the preceding 12 months of:
100 basis point increase	(0.3)	%	4.5	%
100 basis point decrease	0.1	%	(4.8)	%


		September 30, 2022							September 30, 2023
		PNC Economist		Market Forward		Slope Flattening			PNC Economist		Market Forward		Slope Flattening
First year sensitivity	First year sensitivity	3.5	%	4.2	%	(0.5)	%	First year sensitivity	0.6	%	1.3	%	(0.4)	%
Second year sensitivity	Second year sensitivity	(4.3)	%	(3.0)	%	(2.7)	%	Second year sensitivity	4.5	%	3.3	%	(2.5)	%


	Assumptions as of September 30, 2022
	2022	2023	2024
U.S. Real GDP (a)	0.2%	0.1%	1.5%
U.S. Unemployment Rate (b)	3.8%	4.8%	4.7%
	Assumptions as of December 31, 2021
	2022	2023	2024
U.S. Real GDP (a)	2.8%	1.4%	1.3%
U.S. Unemployment Rate (b)	4.4%	4.1%	3.9%


Unaudited In millions	Unaudited In millions	Three months ended September 30				Nine months ended September 30				Unaudited In millions	Three months ended September 30				Nine months ended September 30
		2022		2021		2022		2021			2023		2022		2023		2022
Net income	Net income	$	1,640	$	1,490	$	4,565	$	4,419	Net income	$	1,570	$	1,640	$	4,764	$	4,565
Other comprehensive income (loss), before tax and net of reclassifications into Net income	Other comprehensive income (loss), before tax and net of reclassifications into Net income									Other comprehensive income (loss), before tax and net of reclassifications into Net income
Net change in debt securities	Net change in debt securities	(1,738)		(323)		(10,768)		(1,471)		Net change in debt securities	(932)		(1,738)		(304)		(10,768)
Net change in cash flow hedge derivatives	Net change in cash flow hedge derivatives	(1,025)		(174)		(3,484)		(727)		Net change in cash flow hedge derivatives	(35)		(1,025)		176		(3,484)
Pension and other postretirement benefit plan adjustments	Pension and other postretirement benefit plan adjustments	2		2		64		(11)		Pension and other postretirement benefit plan adjustments	1		2		(3)		64
Net change in Other	Net change in Other	4		1		(3)		2		Net change in Other	1		4		8		(3)
Other comprehensive income (loss), before tax and net of reclassifications into Net income		(2,757)		(494)		(14,191)		(2,207)
Income tax benefit (expense) related to items of other comprehensive income		629		110		3,296		516
Other comprehensive income (loss), after tax and net of reclassifications into Net income		(2,128)		(384)		(10,895)		(1,691)
Other comprehensive loss, before tax and net of reclassifications into Net income										Other comprehensive loss, before tax and net of reclassifications into Net income	(965)		(2,757)		(123)		(14,191)
Income tax benefit related to items of other comprehensive income										Income tax benefit related to items of other comprehensive income	229		629		34		3,296
Other comprehensive income loss, after tax and net of reclassifications into Net income										Other comprehensive income loss, after tax and net of reclassifications into Net income	(736)		(2,128)		(89)		(10,895)

Comprehensive income (loss)	Comprehensive income (loss)	(488)		1,106		(6,330)		2,728		Comprehensive income (loss)	834		(488)		4,675		(6,330)
Less: Comprehensive income attributable to noncontrolling interests	Less: Comprehensive income attributable to noncontrolling interests	16				52		38		Less: Comprehensive income attributable to noncontrolling interests	16				50		52
Comprehensive income (loss) attributable to PNC	Comprehensive income (loss) attributable to PNC	$	(504)	$	1,090	$	(6,382)	$	2,690	Comprehensive income (loss) attributable to PNC	$	818	$	(504)	$	4,625	$	(6,382)


(Continued from previous page)
Unaudited In millions	Nine months ended September 30
	2023		2022
Financing Activities
Net change in
Noninterest-bearing deposits	$	(18,823)	$	(16,748)
Interest-bearing deposits	6,141		(2,332)
Federal funds purchased and repurchase agreements	231		(1)


Other borrowed funds	(272)		862
Sales/issuances
Federal Home Loan Bank borrowings	4,000		30,075
Senior debt	6,977
Subordinated debt			847
Other borrowed funds	619		573
Preferred stock	1,484		2,225
Common and treasury stock	62		58
Repayments/maturities
Federal Home Loan Bank borrowings	(75)
Senior debt	(750)		(5,750)
Subordinated debt	(1,500)
Other borrowed funds	(635)		(591)


Acquisition of treasury stock	(599)		(3,078)
Preferred stock cash dividends paid	(299)		(181)
Common stock cash dividends paid	(1,837)		(1,779)

Net cash provided (used) by financing activities	$	(5,276)	$	4,180
Net Increase (Decrease) In Cash And Due From Banks And Restricted Cash	$	(1,743)	$	(1,456)


Cash and due from banks and restricted cash at beginning of period	7,043		8,004
Cash and due from banks and restricted cash at end of period	$	5,300	$	6,548

Cash And Due From Banks And Restricted Cash
Cash and due from banks at end of period (unrestricted cash)	$	4,782	$	5,974
Restricted cash	518		574
Cash and due from banks and restricted cash at end of period	$	5,300	$	6,548
Supplemental Disclosures
Interest paid	$	6,273	$	895
Income taxes paid	$	945	$	80
Income taxes refunded	$	830	$	15
Leased assets obtained in exchange for new operating lease liabilities	$	148	$	149

Non-cash Investing And Financing Items
Transfer from securities available for sale to securities held to maturity			$	88,605
Transfer from loans to loans held for sale, net	$	349	$	341

Transfer from loans to foreclosed assets	$	44	$	38
Adjustment to assets and liabilities related to partially financed investment exits	$	834


Commercial
Loans classified as nonperforming and accounted for as nonaccrual			• Loans accounted for at amortized cost where: –The loan is 90 days or more past due. –The loan is rated substandard or worse due to the determination that full collection of principal and interest is not probable as demonstrated by the following conditions: •The collection of principal or interest is 90 days or more past due, •Reasonable doubt exists as to the certainty of the borrower’s future debt service ability, according to the terms of the credit arrangement, regardless of whether 90 days have passed or not, •The borrower has filed, or will likely file for bankruptcy, and it is not probable the borrower will be able to repay contractual payments due under the loan, •The bank advances additional funds to cover principal or interest, •We are in the process of liquidating a commercial borrower, or •We are pursuing remedies under a guarantee.
Loans excluded from nonperforming classification but accounted for as nonaccrual			• Loans accounted for under the fair value option and full collection of principal and interest is not probable. • Loans accounted for at the lower of cost or market less costs to sell (held for sale) and full collection of principal and interest is not probable.
Loans excluded from nonperforming classification and nonaccrual accounting			• Loans that are well secured and in the process of collection. • Certain government insured or guaranteed loans where substantially all principal and interest is insured. • Commercial purchasing card assets that do not accrue interest.


Loan Class	Forecast Period - Key Economic Variables	Reversion Method	Long-Run Average
Commercial
Commercial and industrial / Equipment lease financing	•GDP and Gross Domestic Investment measures, employment related variables and personal income and consumption measures	•Immediate reversion	•Average parameters determined based on internal and external historical data •Modeled parameters using long-run economic conditions for retail small balance obligors
Commercial real estate (CRE)	• CRE Price Index, unemployment rates, GDP, corporate bond yield and interest rates	• Immediate reversion	• Average parameters determined based on internal and external historical data
Consumer
Home equity / Residential real estate	•Unemployment rates, HPI and interest rates	•Straight-line over 3 years	•Modeled parameters using long-run economic conditions
Automobile	•Unemployment rates, HPI, disposable personal income and Manheim used car index	•Straight-line over 1 year	•Average parameters determined based on internal historical data
Credit card	•Unemployment rates, personal consumption expenditure and HPI	•Straight-line over 2 years	•Modeled parameters using long-run economic conditions
Education / Other consumer	•Modeled using either discrete risk parameters or analytical approaches based net charge-offs and pay-down rates


Accounting Standards Update	Description	Financial Statement Impact
Reference Rate Reform - ASU 2020-04 Issued March 2020 Reference Rate Reform Scope - ASU 2021-01 Issued January 2021 Reference Rate Reform Deferral of Sunset Date – ASU 2022-06 Issued December 2022	• Provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform (codified in ASC 848). • Includes optional expedients related to contract modifications that allow an entity to account for modifications (if certain criteria are met) as if the modifications were only minor (assets within the scope of ASC 310, ~~Receivables~~)Receivables), were not substantial (assets within the scope of ASC 470, ~~Debt~~)Debt) and/or did not result in remeasurements or reclassifications (assets within the scope of ASC 842, Leases,, and other Topics) of the existing contract. • Includes optional expedients related to hedging relationships within the scope of ASC 815, Derivatives & Hedging,, whereby changes to the critical terms of a hedging relationship do not require dedesignation if certain criteria are met. In addition, potential sources of ineffectiveness as a result of reference rate reform may be disregarded when performing some effectiveness assessments. • Includes optional expedients and exceptions for contract modifications and hedge accounting that apply to derivative instruments impacted by the market-wide discounting transition. • Guidance in these ASUs ~~are currently~~is effective as of March 12, 2020 through December 31, ~~2022. We expect the FASB to extend the relief to December 31, 2024 in a future ASU.~~ 2024.	• ASU 2020-04 was adopted March 12, 2020. ASU 2021-01 was retrospectively adopted October 1, 2020. ASU 2022-06 was adopted upon issuance. • Refer to Note 1 Accounting Policies in ~~the 2021~~our 2022 Form 10-K for more information on elections of optional expedients that occurred in 2020, 2021 and ~~2021.~~2022. We applied these optional expedients consistently to all eligible LIBOR cessation-related contract modifications and hedging relationships since election. • During the second quarter of 2023, we elected and applied certain optional expedients for contract modifications and hedging relationships impacted by the central clearing counterparties conversion processes for LIBOR-indexed derivative instruments. These optional expedients remove the requirement to remeasure contract modifications or dedesignate hedging relationships due to reference rate reform. The elections made apply only to derivatives instruments impacted by the central clearinghouse conversion process. • During the second quarter of 2023, we applied certain optional expedients for investment security, debt and preferred stock instrument contract modifications impacted by LIBOR cessation. These optional expedients remove the requirement to remeasure contract modifications. • We ~~did not make any~~may elect additional ~~elections for the third quarter of 2022. We expect to continue to elect various~~ optional expedients for contract modifications and hedge relationships affected by reference rate reform through the effective date of this guidance.
Accounting Standards Update	Description	Financial Statement Impact
Troubled Debt Restructurings and Vintage Disclosures - ASU 2022-02 Issued March 2022	• Eliminates the accounting guidance for TDRs and requires an entity to apply the loan refinancing and restructuring guidance to determine whether a modification results in a new loan or a continuation of an existing loan. • Eliminates the requirement to use a discounted cash flow approach to measure the allowance for credit losses for TDRs. • Enhances disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. • Requires disclosure of current-period gross charge-offs by year of origination for financing receivables and net investments in leases within the scope of CECL.	• Adopted January 1, 2023 using a modified retrospective transition approach for the amendments related to the recognition and measurement of TDRs. • The impact of adoption resulted in a decrease to the beginning period ALLL of $35 million, resulting in an increase to Retained Earnings of $26 million, net of tax, as of January 1, 2023. • The presentation of our loan modification disclosures have been updated to reflect information on loan modifications given to borrowers experiencing financial difficulty and can be found within Note 3 Loans and Related Allowance for Credit Losses. TDR disclosures are presented for comparative periods only and are not required to be updated in current periods. Additionally, our vintage disclosure has been updated to reflect gross charge-offs by year of origination.
Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method– ASU 2023-02 Issued March 2023	• Permits reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. • A reporting entity makes an accounting policy election to apply the proportional amortization method on a tax-credit-program-by-tax-credit-program basis rather than electing to apply the proportional amortization method at the reporting entity level or to individual investments.	• Adopted September 30, 2023, using a modified retrospective transition approach for the amendments related to our tax credit programs that are eligible to apply proportional amortization. The cumulative effect to Retained earnings as of January 1, 2023 was immaterial. • At adoption, we elected to apply the proportional amortization method to all qualifying investments in the NMTC program. PNC historically applied proportional amortization to LIHTC investments since applying ASU 2014-01. • See Note 4 for the impact of adoption.


	~~June 1, 2021~~
~~In millions~~	~~Fair Value~~
~~Fair value of acquisition consideration~~	$	~~11,480~~
~~Assets~~
~~Cash and due from banks~~	$	~~969~~
~~Interest-earning deposits with banks~~	~~13,313~~
~~Loans held for sale~~	~~463~~
~~Investment securities – available for sale~~	~~18,358~~
~~Net loans~~	~~61,423~~
~~Equity investments~~	~~723~~
~~Mortgage servicing rights~~	35
~~Core deposit intangibles and other intangible assets~~	~~378~~
~~Other~~	~~3,527~~
~~Total assets~~	$	~~99,189~~
~~Liabilities~~
~~Deposits~~	$	~~85,562~~
~~Borrowed funds~~	~~2,449~~
~~Accrued expenses and other liabilities~~	~~1,275~~
~~Total liabilities~~	$	~~89,286~~
~~Noncontrolling interests~~	22
~~Less: Net assets~~	$	~~9,881~~
~~Goodwill~~	$	~~1,599~~


		Unrealized loss position less than 12 months				Unrealized loss position 12 months or more				Total					Unrealized loss position less than 12 months				Unrealized loss position 12 months or more				Total
In millions	In millions	Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		In millions	Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value
September 30, 2022
September 30, 2023														September 30, 2023

U.S. Treasury and government agencies	U.S. Treasury and government agencies	$	(817)	$	9,462	$	(67)	$	404	$	(884)	$	9,866	U.S. Treasury and government agencies	$	(3)	$	374	$	(778)	$	6,013	$	(781)	$	6,387
Residential mortgage-backed	Residential mortgage-backed													Residential mortgage-backed
Agency	Agency	(2,874)		24,373		(735)		3,602		(3,609)		27,975		Agency	(107)		3,294		(4,171)		23,547		(4,278)		26,841
Non-agency	Non-agency	(3)		71		(1)		17		(4)		88		Non-agency	(1)		51		(6)		71		(7)		122
Commercial mortgage-backed	Commercial mortgage-backed													Commercial mortgage-backed
Agency	Agency	(166)		1,588		(10)		144		(176)		1,732		Agency	(1)		42		(193)		1,493		(194)		1,535
Non-agency	Non-agency	(42)		945		(7)		236		(49)		1,181		Non-agency					(55)		793		(55)		793
Asset-backed	Asset-backed	(1)		10						(1)		10		Asset-backed	(6)		687		(1)		10		(7)		697
Other	Other	(195)		2,266		(52)		314		(247)		2,580		Other	(8)		205		(208)		2,152		(216)		2,357
Total securities available for sale	Total securities available for sale	$	(4,098)	$	38,715	$	(872)	$	4,717	$	(4,970)	$	43,432	Total securities available for sale	$	(126)	$	4,653	$	(5,412)	$	34,079	$	(5,538)	$	38,732
December 31, 2021
December 31, 2022														December 31, 2022
U.S. Treasury and government agencies	U.S. Treasury and government agencies	$	(370)	$	32,600					$	(370)	$	32,600	U.S. Treasury and government agencies	$	(601)	$	5,868	$	(235)	$	2,208	$	(836)	$	8,076
Agency residential mortgage-backed		(369)		41,521		$	(20)	$	1,489	(389)		43,010

Residential mortgage-backed														Residential mortgage-backed
Agency														Agency	(1,744)		19,036		(1,560)		8,971		(3,304)		28,007
Non-agency														Non-agency	(6)		112		(2)		17		(8)		129
Commercial mortgage-backed	Commercial mortgage-backed													Commercial mortgage-backed
Agency	Agency	(5)		451		(1)		60		(6)		511		Agency	(125)		1,283		(45)		372		(170)		1,655
Non-agency	Non-agency	(4)		1,453		(3)		474		(7)		1,927		Non-agency	(44)		750		(18)		394		(62)		1,144
Asset-backed	Asset-backed	(29)		3,465		(2)		188		(31)		3,653		Asset-backed					(1)		5		(1)		5
Other	Other	(13)		1,405						(13)		1,405		Other	(96)		1,418		(112)		1,144		(208)		2,562

Total securities available for sale	Total securities available for sale	$	(790)	$	80,895	$	(26)	$	2,211	$	(816)	$	83,106	Total securities available for sale	$	(2,616)	$	28,467	$	(1,973)	$	13,111	$	(4,589)	$	41,578


Nine months ended September 30 In millions	Gross Gains		Gross Losses		Net Gains (Losses)		Tax Expense (Benefit)
2022	$	11	$	(15)	$	(4)	$	(1)
2021	$	275	$	(225)	$	50	$	11