The PNC Financial Services Group, Inc. 8K Results of Operations and Financial Condition | PNC 14 Apr 22

Exhibit 99.1

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2022

(Unaudited)

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2022

(UNAUDITED)


Consolidated Results:			Page
Income Statement			1
Balance Sheet			2
Average Balance Sheet			3
Details of Net Interest Margin			4

Loans			5
Allowance for Credit Losses			6-7
Nonperforming Assets			8
Accruing Loans Past Due			9-11

Business Segment Results:
Descriptions			12
Period End Employees			12
Net Income and Revenue			13
Retail Banking			14-15
Corporate & Institutional Banking			16
Asset Management Group			17

Glossary of Terms			18-20

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

BUSINESS

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

PRESENTATION OF NONINTEREST INCOME

Effective for the first quarter of 2022, PNC updated the presentation of its noninterest income categorization to be based on product and service type, and accordingly, has changed the basis of presentation of its noninterest income revenue streams to: (i) Asset management and brokerage, (ii) Capital markets related, (iii) Card and cash management, (iv) Lending and deposit services, (v) Residential and commercial mortgage and (vi) Other noninterest income. For a description of each updated noninterest income revenue stream, see PNC's Current Report on Form 8-K filed on March 31, 2022.

ACQUISITION OF BBVA USA BANCSHARES, INC.

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

On October 8, 2021, BBVA USA merged into PNC Bank. As of October 12, 2021, PNC converted approximately 2.6 million

customers, 9,000 employees and over 600 branches across seven states. Our 2021 results of operations reflect the benefit of BBVA's acquired business operations for the period since the acquisition closed on June 1, 2021. PNC's balance sheets at March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021 include BBVA's balances.


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

Table	Description	Page
1	Consolidated Income Statement	1
2	Consolidated Balance Sheet	2
3	Average Consolidated Balance Sheet	3
4	Details of Net Interest Margin	4

5	Details of Loans	5
6	Change in Allowance for Loan and Lease Losses	6
7	Components of the Provision for (Recapture of) Credit Losses	7
8	Allowance for Credit Losses by Loan Class	7
9	Nonperforming Assets by Type	8
10	Change in Nonperforming Assets	8
11	Accruing Loans Past Due 30 to 59 Days	9
12	Accruing Loans Past Due 60 to 89 Days	10
13	Accruing Loans Past Due 90 Days or More	11
14	Period End Employees	12
15	Summary of Business Segment Net Income and Revenue	13
16	Retail Banking	14-15
17	Corporate & Institutional Banking	16
18	Asset Management Group	17


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 1

Table 1: Consolidated Income Statement (Unaudited)


	Three months ended
	March 31			December 31			September 30			June 30			March 31
In millions, except per share data	2022			2021			2021			2021			2021
Interest Income
Loans	$	2,293		$	2,414		$	2,437		$	2,160		$	1,996
Investment securities	544			484			460			469			421
Other	77			77			78			72			66
Total interest income	2,914			2,975			2,975			2,701			2,483
Interest Expense
Deposits	27			27			29			30			40
Borrowed funds	83			86			90			90			95
Total interest expense	110			113			119			120			135
Net interest income	2,804			2,862			2,856			2,581			2,348
Noninterest Income
Asset management and brokerage	377			385			375			350			328
Capital markets related	252			460			482			324			311
Card and cash management	620			646			663			597			492
Lending and deposit services	269			273			305			270			254
Residential and commercial mortgage	159			209			248			206			187
Other (a)	211			292			268			339			300
Total noninterest income	1,888			2,265			2,341			2,086			1,872
Total revenue	4,692			5,127			5,197			4,667			4,220
Provision For (Recapture of) Credit Losses	(208)			(327)			(203)			302			(551)
Noninterest Expense
Personnel	1,717			2,038			1,986			1,640			1,477
Occupancy	258			260			248			217			215
Equipment	331			437			355			326			293
Marketing	61			97			103			74			45
Other	805			959			895			793			544
Total noninterest expense	3,172			3,791			3,587			3,050			2,574
Income before income taxes and noncontrolling interests	1,728			1,663			1,813			1,315			2,197
Income taxes	299			357			323			212			371




Net income	1,429			1,306			1,490			1,103			1,826
Less: Net income attributable to noncontrolling interests	21			13			16			12			10
Preferred stock dividends (b)	45			71			57			48			57
Preferred stock discount accretion and redemptions	2			2			1			1			1
Net income attributable to common shareholders	$	1,361		$	1,220		$	1,416		$	1,042		$	1,758
Earnings Per Common Share
Basic	$	3.23		$	2.87		$	3.31		$	2.43		$	4.11


Diluted	$	3.23		$	2.86		$	3.30		$	2.43		$	4.10


Average Common Shares Outstanding
Basic	420			424			426			427			426
Diluted	420			424			426			427			426
Efficiency	68		%	74		%	69		%	65		%	61		%
Noninterest income to total revenue	40		%	44		%	45		%	45		%	44		%
Effective tax rate from continuing operations (c)	17.3		%	21.5		%	17.8		%	16.1		%	16.9		%

(a)Includes net gains (losses) on sales of securities of $(4) million, $14 million, $15 million, $10 million and $25 million for the quarters ended March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021, respectively.

(b)Dividends are payable quarterly other than Series R and Series S preferred stock, which are payable semiannually.

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


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 2

Table 2: Consolidated Balance Sheet (Unaudited)


	March 31		December 31		September 30		June 30		March 31
In millions, except par value	2022		2021		2021		2021		2021
Assets
Cash and due from banks	$	7,572	$	8,004	$	8,843	$	8,724	$	7,455
Interest-earning deposits with banks (a)	48,776		74,250		75,478		72,447		86,161
Loans held for sale (b)	1,506		2,231		2,121		2,227		1,967
Investment securities – available for sale	112,313		131,536		124,127		125,058		96,799
Investment securities – held to maturity	20,098		1,426		1,479		1,485		1,456
Loans (b)	294,457		288,372		290,230		294,704		237,013
Allowance for loan and lease losses	(4,558)		(4,868)		(5,355)		(5,730)		(4,714)
Net loans	289,899		283,504		284,875		288,974		232,299
Equity investments	7,798		8,180		7,737		7,521		6,386
Mortgage servicing rights	2,208		1,818		1,833		1,793		1,680
Goodwill	10,916		10,916		10,885		10,958		9,317
Other (b)	40,160		35,326		36,137		35,025		30,894
Total assets	$	541,246	$	557,191	$	553,515	$	554,212	$	474,414
Liabilities
Deposits
Noninterest-bearing	$	150,798	$	155,175	$	156,305	$	154,190	$	120,641
Interest-bearing	299,399		302,103		292,597		298,693		254,426
Total deposits	450,197		457,278		448,902		452,883		375,067
Borrowed funds
Federal Home Loan Bank borrowings									1,500
Bank notes and senior debt	16,206		20,661		22,993		24,408		22,139
Subordinated debt	6,766		6,996		7,074		7,120		6,241
Other (b)	3,599		3,127		3,404		3,285		3,150
Total borrowed funds	26,571		30,784		33,471		34,813		33,030
Allowance for unfunded lending related commitments	639		662		646		645		507
Accrued expenses and other liabilities	14,623		12,741		14,199		11,186		11,931
Total liabilities	492,030		501,465		497,218		499,527		420,535
Equity
Preferred stock (c)
Common stock - $5 par value
Authorized 800 shares, issued 543 shares	2,713		2,713		2,713		2,713		2,713
Capital surplus	17,487		17,457		17,453		15,928		15,879
Retained earnings	51,058		50,228		49,541		48,663		48,113
Accumulated other comprehensive income (loss)	(5,731)		409		1,079		1,463		1,290
Common stock held in treasury at cost: 128, 123, 120, 118, and 118 shares	(16,346)		(15,112)		(14,527)		(14,140)		(14,146)
Total shareholders’ equity	49,181		55,695		56,259		54,627		53,849
Noncontrolling interests	35		31		38		58		30
Total equity	49,216		55,726		56,297		54,685		53,879
Total liabilities and equity	$	541,246	$	557,191	$	553,515	$	554,212	$	474,414

(a)Amounts include balances held with the Federal Reserve Bank of $48.4 billion, $73.8 billion, $75.1 billion, $71.9 billion and $85.8 billion as of March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021, respectively.

(b)Amounts include assets and liabilities for which PNC has elected the fair value option. Our 2021 Form 10-K included, and our first quarter 2022 Form 10-Q will include, additional information regarding these items.

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


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 3


Table 3: Average Consolidated Balance Sheet (Unaudited) (a) (b)
	Three months ended
	March 31		December 31		September 30		June 30		March 31
In millions	2022		2021		2021		2021		2021
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	$	67,498	$	64,521	$	63,163	$	56,042	$	45,298
Non-agency	1,007		974		1,051		1,142		1,236
Commercial mortgage-backed	5,229		5,538		6,134		6,465		6,241
Asset-backed	6,225		6,206		5,608		5,855		5,304
U.S. Treasury and government agencies	47,468		44,415		38,149		32,419		22,309
Other	4,876		4,741		4,994		5,107		4,561
Total securities available for sale	132,303		126,395		119,099		107,030		84,949
Securities held to maturity
Residential mortgage-backed	106


U.S. Treasury and government agencies	919		812		807		802		797
Other	569		642		680		671		650
Total securities held to maturity	1,594		1,454		1,487		1,473		1,447
Total investment securities	133,897		127,849		120,586		108,503		86,396
Loans
Commercial and industrial	155,481		152,355		152,964		137,892		129,996
Commercial real estate	34,004		35,256		37,054		31,611		28,598
Equipment lease financing	6,099		6,183		6,300		6,332		6,332
Consumer	54,965		56,244		57,533		52,575		50,904
Residential real estate	40,152		38,872		37,475		27,197		22,305
Total loans	290,701		288,910		291,326		255,607		238,135
Interest-earning deposits with banks (c)	62,540		75,377		80,274		78,522		85,410
Other interest-earning assets	9,417		9,113		9,113		8,079		7,829
Total interest-earning assets	496,555		501,249		501,299		450,711		417,770
Noninterest-earning assets	53,541		58,123		57,943		53,718		50,450
Total assets	$	550,096	$	559,372	$	559,242	$	504,429	$	468,220
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	62,596	$	65,214	$	82,911	$	64,990	$	59,083
Demand	112,372		108,345		106,588		99,091		91,619
Savings	108,532		104,644		89,679		87,307		82,926
Time deposits	16,043		18,029		19,293		18,048		18,449
Total interest-bearing deposits	299,543		296,232		298,471		269,436		252,077
Borrowed funds
Federal Home Loan Bank borrowings							265		2,411
Bank notes and senior debt	18,015		21,581		22,573		22,620		22,799
Subordinated debt	6,773		6,779		6,787		6,218		5,929
Other	5,524		5,987		4,992		5,046		4,057
Total borrowed funds	30,312		34,347		34,352		34,149		35,196
Total interest-bearing liabilities	329,855		330,579		332,823		303,585		287,273
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits	153,726		156,549		155,948		132,283		113,299
Accrued expenses and other liabilities	14,058		16,818		15,332		14,755		14,258
Equity	52,457		55,426		55,139		53,806		53,390
Total liabilities and equity	$	550,096	$	559,372	$	559,242	$	504,429	$	468,220

(a)Calculated using average daily balances.

(b)Nonaccrual loans are included in loans, net of unearned income. The impact of financial derivatives used in interest rate risk management is included in the interest income/expense and average yields/rates of the related assets and liabilities. Basis adjustments related to hedged items are included in noninterest-earning assets and noninterest-bearing liabilities. Average balances of securities are based on amortized historical cost (excluding adjustments to fair value, which are included in other assets). Average balances for certain loans and borrowed funds accounted for at fair value are included in noninterest-earning assets and noninterest-bearing liabilities, with changes in fair value recorded in Noninterest income.

(c)Amounts include average balances held with the Federal Reserve Bank of Cleveland of $62.3 billion, $75.1 billion, $80.1 billion, $78.3 billion and $85.2 billion for the three months ended March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021, respectively.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 4


Table 4: Details of Net Interest Margin (Unaudited)
	Three months ended
	March 31		December 31		September 30		June 30		March 31
	2022		2021		2021		2021		2021
Average yields/rates (a)
Yield on interest-earning assets
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	1.73	%	1.47	%	1.41	%	1.61	%	1.72	%
Non-agency	7.53	%	7.36	%	8.07	%	7.85	%	7.24	%
Commercial mortgage-backed	2.36	%	2.37	%	2.34	%	2.49	%	2.58	%
Asset-backed	1.35	%	1.48	%	1.50	%	2.07	%	1.84	%
U.S. Treasury and government agencies	1.18	%	1.17	%	1.18	%	1.30	%	1.68	%
Other	2.73	%	2.77	%	2.90	%	3.00	%	3.28	%
Total securities available for sale	1.62	%	1.50	%	1.51	%	1.73	%	1.95	%
Securities held to maturity



U.S. Treasury and government agencies	2.61	%	2.89	%	2.88	%	2.86	%	2.83	%
Other	4.17	%	4.20	%	4.33	%	3.67	%	4.17	%
Total securities held to maturity	2.99	%	3.47	%	3.54	%	3.23	%	3.43	%
Total investment securities	1.64	%	1.52	%	1.54	%	1.75	%	1.97	%
Loans
Commercial and industrial	2.75	%	2.90	%	2.80	%	2.89	%	2.91	%
Commercial real estate	2.79	%	2.86	%	3.17	%	2.92	%	2.80	%
Equipment lease financing	3.74	%	3.81	%	3.83	%	3.76	%	3.90	%
Consumer	4.69	%	4.71	%	4.85	%	4.82	%	4.78	%
Residential real estate	3.10	%	3.26	%	3.15	%	3.50	%	3.53	%
Total loans	3.19	%	3.32	%	3.32	%	3.38	%	3.38	%
Interest-earning deposits with banks	0.19	%	0.15	%	0.16	%	0.11	%	0.10	%
Other interest-earning assets	2.07	%	2.14	%	2.03	%	2.46	%	2.34	%
Total yield on interest-earning assets	2.37	%	2.36	%	2.36	%	2.40	%	2.40	%
Rate on interest-bearing liabilities
Interest-bearing deposits
Money market	0.03	%	0.02	%	0.03	%	0.03	%	0.03	%
Demand	0.02	%	0.02	%	0.03	%	0.03	%	0.04	%
Savings	0.04	%	0.04	%	0.04	%	0.05	%	0.06	%
Time deposits	0.13	%	0.11	%	0.12	%	0.20	%	0.32	%
Total interest-bearing deposits	0.04	%	0.04	%	0.04	%	0.05	%	0.06	%
Borrowed funds
Federal Home Loan Bank borrowings							0.35	%	0.43	%
Bank notes and senior debt	1.02	%	0.94	%	0.97	%	0.98	%	1.04	%
Subordinated debt	1.40	%	1.28	%	1.28	%	1.35	%	1.43	%
Other	0.97	%	0.79	%	0.93	%	0.97	%	1.21	%
Total borrowed funds	1.10	%	0.98	%	1.03	%	1.04	%	1.09	%
Total rate on interest-bearing liabilities	0.13	%	0.13	%	0.14	%	0.16	%	0.19	%
Interest rate spread	2.24	%	2.23	%	2.22	%	2.24	%	2.21	%
Benefit from use of noninterest bearing sources (b)	0.04	%	0.04	%	0.05	%	0.05	%	0.06	%
Net interest margin	2.28	%	2.27	%	2.27	%	2.29	%	2.27	%

(a)Yields and rates are calculated using the applicable annualized interest income or interest expense divided by the applicable average earning assets or interest-bearing liabilities. Net interest margin is the total yield on interest-earning assets minus the total rate on interest-bearing liabilities and includes the benefit from use of noninterest-bearing sources. To provide more meaningful comparisons of net interest margins, we use net interest income on a taxable-equivalent basis in calculating average yields used in the calculation of net interest margin by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under GAAP in the Consolidated Income Statement. The taxable-equivalent adjustments to net interest income for the three months ended March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021 were $22 million, $22 million, $22 million, $15 million and $15 million, respectively.

(b)Represents the positive effects of investing noninterest-bearing sources in interest-earning assets.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 5

Table 5: Details of Loans (Unaudited)


	March 31		December 31		September 30		June 30		March 31
In millions	2022		2021		2021		2021		2021
Commercial
Commercial and industrial
Manufacturing	$	25,035	$	22,597	$	22,760	$	22,709	$	20,032
Retail/wholesale trade	25,027		22,803		22,238		22,596		20,349
Service providers	20,584		20,750		20,969		22,303		19,403
Financial services	17,674		17,950		18,022		15,947		13,382
Real estate related (a)	15,459		15,123		14,809		14,945		13,052
Technology, media & telecommunications	10,684		10,070		8,920		9,195		7,746
Health care	9,810		9,944		10,567		11,713		8,741
Transportation and warehousing	7,209		7,136		7,318		7,967		6,751
Other industries	26,392		26,560		27,132		27,925		20,342
Total commercial and industrial	157,874		152,933		152,735		155,300		129,798
Commercial real estate	34,171		34,015		36,195		37,964		28,319
Equipment lease financing	6,216		6,130		6,257		6,376		6,389
Total commercial	198,261		193,078		195,187		199,640		164,506
Consumer
Residential real estate	41,566		39,712		38,214		36,846		22,418
Home equity	24,185		24,061		24,479		25,174		23,493
Automobile	16,001		16,635		17,265		17,551		13,584
Credit card	6,464		6,626		6,466		6,528		5,675
Education	2,441		2,533		2,653		2,726		2,842
Other consumer	5,539		5,727		5,966		6,239		4,495
Total consumer	96,196		95,294		95,043		95,064		72,507
Total loans	$	294,457	$	288,372	$	290,230	$	294,704	$	237,013

(a)Represents loans to customers in the real estate and construction industries.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 6

Allowance for Credit Losses (Unaudited)

Table 6: Change in Allowance for Loan and Lease Losses


	Three months ended
	March 31			December 31			September 30			June 30			March 31
Dollars in millions	2022			2021			2021			2021			2021
Allowance for loan and lease losses
Beginning balance	$	4,868		$	5,355		$	5,730		$	4,714		$	5,361
Acquisition PCD reserves							(59)			1,115
Gross charge-offs:
Commercial and industrial	(41)			(35)			(46)			(245)			(59)
Commercial real estate	(10)			(2)			(1)			(28)			(5)
Equipment lease financing	(1)			(4)			(3)			(1)			(5)
Residential real estate	(7)			(4)			(4)			(3)			(4)
Home equity	(4)			(4)			(2)			(7)			(7)
Automobile	(52)			(49)			(33)			(35)			(52)
Credit card	(68)			(60)			(62)			(65)			(69)
Education	(4)			(4)			(3)			(3)			(5)
Other consumer	(64)			(62)			(52)			(41)			(37)
Total gross charge-offs	(251)			(224)			(206)			(428)			(243)
Recoveries:
Commercial and industrial	30			20			25			29			14
Commercial real estate	1			2			2			2			1
Equipment lease financing	3			3			2			3			3
Residential real estate	5			8			9			6			5
Home equity	21			23			25			21			17
Automobile	31			26			38			41			38
Credit card	12			10			13			11			12
Education	1			2			2			2			2
Other consumer	10			6			9			7			5
Total recoveries	114			100			125			122			97
Net (charge-offs) / recoveries:
Commercial and industrial	(11)			(15)			(21)			(216)			(45)
Commercial real estate	(9)						1			(26)			(4)
Equipment lease financing	2			(1)			(1)			2			(2)
Residential real estate	(2)			4			5			3			1
Home equity	17			19			23			14			10
Automobile	(21)			(23)			5			6			(14)
Credit card	(56)			(50)			(49)			(54)			(57)
Education	(3)			(2)			(1)			(1)			(3)
Other consumer	(54)			(56)			(43)			(34)			(32)
Total net (charge-offs) (a)	(137)			(124)			(81)			(306)			(146)
Provision for (recapture of) credit losses (b)	(172)			(362)			(229)			206			(502)
Other	(1)			(1)			(6)			1			1
Ending balance	$	4,558		$	4,868		$	5,355		$	5,730		$	4,714
Supplemental Information
Net charge-offs
Commercial net charge-offs	$	(18)		$	(16)		$	(21)		$	(240)		$	(51)
Consumer net charge-offs	(119)			(108)			(60)			(66)			(95)
Total net charge-offs (a)	$	(137)		$	(124)		$	(81)		$	(306)		$	(146)
Net charge-offs to average loans (annualized)	0.19		%	0.17		%	0.11		%	0.48		%	0.25		%
Commercial	0.04		%	0.03		%	0.04		%	0.55		%	0.13		%
Consumer	0.51		%	0.45		%	0.25		%	0.33		%	0.53		%

(a) Amounts for the three months ended June 30, 2021 included $248 million attributable to BBVA, primarily related to commercial and industrial loans, which were largely the result of required purchase accounting treatment for the BBVA acquisition on June 1, 2021.

(b) See Table 7 for the components of the Provision for (recapture of) credit losses being reported on the Consolidated Income Statement.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 7

Allowance for Credit Losses (Unaudited) (Continued)

Table 7: Components of the Provision for (Recapture of) Credit Losses


	Three months ended
	March 31		December 31		September 30		June 30		March 31
In millions	2022		2021		2021		2021 (a)		2021
Provision for (recapture of) credit losses
Loans and leases	$	(172)	$	(362)	$	(229)	$	206	$	(502)
Unfunded lending related commitments	(23)		16		1		92		(77)
Investment securities	1				25				26
Other financial assets	(14)		19				4		2
Total provision for (recapture of) credit losses	$	(208)	$	(327)	$	(203)	$	302	$	(551)

(a) Amounts include $1.0 billion of provision for credit losses that was recorded as part of the BBVA acquisition on June 1, 2021.

Table 8: Allowance for Credit Losses by Loan Class (a)


	March 31, 2022						December 31, 2021						March 31, 2021
Dollars in millions	Allowance Amount		Total Loans		% of Total Loans		Allowance Amount		Total Loans		% of Total Loans		Allowance Amount		Total Loans		% of Total Loans
Allowance for loan and lease losses
Commercial
Commercial and industrial	$	1,884	$	157,874	1.19	%	$	1,879	$	152,933	1.23	%	$	1,815	$	129,798	1.40	%
Commercial real estate	1,034		34,171		3.03	%	1,216		34,015		3.57	%	1,126		28,319		3.98	%
Equipment lease financing	85		6,216		1.37	%	90		6,130		1.47	%	142		6,389		2.22	%
Total commercial	3,003		198,261		1.51	%	3,185		193,078		1.65	%	3,083		164,506		1.87	%
Consumer
Residential real estate	25		41,566		0.06	%	21		39,712		0.05	%	(17)		22,418		(0.08)	%
Home equity	170		24,185		0.70	%	149		24,061		0.62	%	239		23,493		1.02	%
Automobile	276		16,001		1.72	%	372		16,635		2.24	%	344		13,584		2.53	%
Credit card	708		6,464		10.95	%	712		6,626		10.75	%	693		5,675		12.21	%
Education	66		2,441		2.70	%	71		2,533		2.80	%	112		2,842		3.94	%
Other consumer	310		5,539		5.60	%	358		5,727		6.25	%	260		4,495		5.78	%
Total consumer	1,555		96,196		1.62	%	1,683		95,294		1.77	%	1,631		72,507		2.25	%
Total	4,558		$	294,457	1.55	%	4,868		$	288,372	1.69	%	4,714		$	237,013	1.99	%
Allowance for unfunded lending related commitments	639						662						507
Allowance for credit losses	$	5,197					$	5,530					$	5,221

Supplemental Information
Allowance for credit losses to total loans					1.76	%					1.92	%					2.20	%
Commercial					1.81	%					1.94	%					2.12	%
Consumer					1.67	%					1.87	%					2.39	%

(a) Excludes allowances for investment securities and other financial assets, which together totaled $158 million, $171 million and $136 million at March 31, 2022, December 31, 2021 and March 31, 2021, respectively.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 8

Details of Nonperforming Assets (Unaudited)

Table 9: Nonperforming Assets by Type


	March 31			December 31			September 30			June 30			March 31
Dollars in millions	2022			2021			2021			2021			2021
Nonperforming loans, including TDRs
Commercial
Commercial and industrial
Service providers	$	173		$	188		$	220		$	206		$	79
Manufacturing	70			52			62			65			55
Retail/wholesale trade	59			50			59			71			66
Real estate related (a)	39			64			49			78			48
Health care	37			46			56			71			19
Technology, media & telecommunications	36			33			37			62			43
Transportation and warehousing	28			18			21			18			18
Other industries	218			345			325			359			184
Total commercial and industrial	660			796			829			930			512
Commercial real estate	332			364			365			501			221
Equipment lease financing	6			8			10			15			16
Total commercial	998			1,168			1,204			1,446			749
Consumer (b)
Residential real estate	526			517			533			503			541
Home equity	576			596			592			626			656
Automobile	181			183			184			191			178
Credit card	8			7			7			7			7
Other consumer	9			9			8			6			7
Total consumer	1,300			1,312			1,324			1,333			1,389
Total nonperforming loans (c)	2,298			2,480			2,528			2,779			2,138
OREO and foreclosed assets	26			26			31			39			41
Total nonperforming assets	$	2,324		$	2,506		$	2,559		$	2,818		$	2,179
Nonperforming loans to total loans	0.78		%	0.86		%	0.87		%	0.94		%	0.90		%
Nonperforming assets to total loans, OREO and foreclosed assets	0.79		%	0.87		%	0.88		%	0.96		%	0.92		%
Nonperforming assets to total assets	0.43		%	0.45		%	0.46		%	0.51		%	0.46		%
Allowance for loan and lease losses to nonperforming loans	198		%	196		%	212		%	206		%	220		%

(a)Represents loans related to customers in the real estate and construction industries.

(b)Excludes most unsecured consumer loans and lines of credit, which are charged off after 120 to 180 days past due and are not placed on nonperforming status.

(c)Nonperforming loans exclude certain government insured or guaranteed loans, loans held for sale and loans accounted for under the fair value option.

Table 10: Change in Nonperforming Assets


	January 1, 2022 -		October 1, 2021 -		July 1, 2021 -		April 1, 2021 -		January 1, 2021 -
In millions	March 31, 2022		December 31, 2021		September 30, 2021		June 30, 2021		March 31, 2021
Beginning balance	$	2,506	$	2,559	$	2,818	$	2,179	$	2,337
Acquired nonperforming assets (a)							880
New nonperforming assets	346		395		365		207		249
Charge-offs and valuation adjustments	(62)		(53)		(71)		(61)		(70)
Principal activity, including paydowns and payoffs	(274)		(240)		(333)		(264)		(186)
Asset sales and transfers to loans held for sale	(21)		(3)		(30)		(15)		(86)
Returned to performing status	(171)		(152)		(190)		(108)		(65)
Ending balance	$	2,324	$	2,506	$	2,559	$	2,818	$	2,179

(a)Represents nonperforming assets acquired as a part of the BBVA acquisition on June 1, 2021 and includes $871 million of loans and $9 million of OREO and foreclosed assets. Our second quarter 2021 Form 10-Q included additional information on the BBVA acquisition.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 9

Accruing Loans Past Due (Unaudited)

Under the CARES Act credit reporting rules, certain loans modified due to COVID-19 related hardships are not being reported as past due

for the periods presented based on the contractual terms of the loan, even where borrowers may not be making payments on their loans during the modification period. Our 2021 Form 10-K included additional information on COVID-19 related loan modifications.

Table 11: Accruing Loans Past Due 30 to 59 Days (a)



	March 31			December 31			September 30			June 30			March 31
Dollars in millions	2022			2021			2021			2021			2021
Commercial
Commercial and industrial	$	185		$	235		$	97		$	72		$	80
Commercial real estate	68			46			68			5			12
Equipment lease financing	20			25			5			3			21
Total commercial	273			306			170			80			113
Consumer
Residential real estate
Non government insured	239			310			178			182			61
Government insured	66			69			81			88			101
Home equity	41			53			45			44			43
Automobile	109			146			114			98			76
Credit card	39			49			42			37			31
Education
Non government insured	5			5			5			5			6
Government insured	36			38			40			41			43
Other consumer	47			35			34			31			11
Total consumer	582			705			539			526			372
Total	$	855		$	1,011		$	709		$	606		$	485
Supplemental Information
Total accruing loans past due 30-59 days to total loans	0.29		%	0.35		%	0.24		%	0.21		%	0.20		%
Commercial	0.14		%	0.16		%	0.09		%	0.04		%	0.07		%
Consumer	0.61		%	0.74		%	0.57		%	0.55		%	0.51		%

(a)Excludes loans held for sale.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 10

Accruing Loans Past Due (Unaudited) (Continued)

Table 12: Accruing Loans Past Due 60 to 89 Days (a)


	March 31			December 31			September 30			June 30			March 31
Dollars in millions	2022			2021			2021			2021			2021
Commercial
Commercial and industrial	$	64		$	72		$	50		$	27		$	13
Commercial real estate	41			24			2			3			1
Equipment lease financing	1			2			4			4			1
Total commercial	106			98			56			34			15
Consumer
Residential real estate
Non government insured	47			78			53			53			13
Government insured	37			41			45			52			60
Home equity	16			18			18			17			20
Automobile	26			40			23			20			19
Credit card	28			33			27			24			24
Education
Non government insured	3			2			3			2			3
Government insured	21			23			23			20			22
Other consumer	26			22			15			16			6
Total consumer	204			257			207			204			167
Total	$	310		$	355		$	263		$	238		$	182
Supplemental Information
Total accruing loans past due 60-89 days to total loans	0.11		%	0.12		%	0.09		%	0.08		%	0.08		%
Commercial	0.05		%	0.05		%	0.03		%	0.02		%	0.01		%
Consumer	0.21		%	0.27		%	0.22		%	0.21		%	0.23		%

(a)Excludes loans held for sale.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 11

Accruing Loans Past Due (Unaudited) (Continued)

Table 13: Accruing Loans Past Due 90 Days or More (a)


	March 31			December 31			September 30			June 30			March 31
Dollars in millions	2022			2021			2021			2021			2021
Commercial
Commercial and industrial	$	105		$	132		$	56		$	45		$	63
Commercial real estate	7			1			11			2
Total commercial	112			133			67			47			63
Consumer
Residential real estate
Non government insured	41			59			33			44			17
Government insured	232			269			268			297			258
Automobile	8			14			4			3			6
Credit card	62			62			53			59			52
Education
Non government insured	2			2			1			1			2
Government insured	62			63			60			66			74
Other consumer	15			17			11			14			7
Total consumer	422			486			430			484			416
Total	$	534		$	619		$	497		$	531		$	479
Supplemental Information
Total accruing loans past due 90 days or more to total loans	0.18		%	0.21		%	0.17		%	0.18		%	0.20		%
Commercial	0.06		%	0.07		%	0.03		%	0.02		%	0.04		%
Consumer	0.44		%	0.51		%	0.45		%	0.51		%	0.57		%
Total accruing loans past due	$	1,699		$	1,985		$	1,469		$	1,375		$	1,146
Commercial	$	491		$	537		$	293		$	161		$	191
Consumer	$	1,208		$	1,448		$	1,176		$	1,214		$	955
Total accruing loans past due to total loans	0.58		%	0.69		%	0.51		%	0.47		%	0.48		%
Commercial	0.25		%	0.28		%	0.15		%	0.08		%	0.12		%
Consumer	1.26		%	1.52		%	1.24		%	1.28		%	1.32		%

(a)Excludes loans held for sale.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 12

Business Segment Descriptions (Unaudited)

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

Corporate & Institutional Banking provides lending, treasury management and capital markets products and services to mid-sized and large corporations, and government and not-for-profit entities. Lending products include secured and unsecured loans, letters of credit and equipment leases. The Treasury Management business provides corporations with cash and investment management services, receivables and disbursement management services, funds transfer services, international payment services and access to online/mobile information management and reporting services. Within Treasury Management, PNC Global Transfers provides wholesale money transfer processing capabilities between the U.S. and Mexico and other countries primarily in Central America and South America. Capital markets products and services include foreign exchange, derivatives, fixed income, securities underwriting, loan syndications, mergers and acquisitions advisory and equity capital markets advisory related services. We also provide commercial loan servicing and technology solutions for the commercial real estate finance industry. Products and services are provided nationally.

Asset Management Group provides private banking for high net worth and ultra high net worth clients and institutional asset management. The Asset Management group is comprised of two distinct operating units:

•PNC Private Bank provides products and services to emerging affluent, high net worth and ultra high net worth individuals and their families including investment and retirement planning, customized investment management, credit and cash management solutions, and trust management and administration. In addition, multi-generational family planning services are also provided to ultra high net worth individuals and their families which include estate, financial, tax, fiduciary and customized performance reporting through PNC Private Bank Hawthorn.

•Institutional Asset Management provides outsourced chief investment officer, custody, private real estate, cash and fixed income client solutions, and retirement plan fiduciary investment services to institutional clients including corporations, healthcare systems, insurance companies, unions, municipalities and non-profits.

Table 14: Period End Employees


	March 31	December 31	September 30	June 30	March 31
	2022	2021	2021	2021	2021
Full-time employees
Retail Banking	33,293	32,563	33,188	33,471	27,690
Other full-time employees	25,037	25,105	25,442	25,512	22,281
Total full-time employees	58,330	57,668	58,630	58,983	49,971
Part-time employees
Retail Banking	1,670	1,669	1,616	1,821	1,697
Other part-time employees	82	89	94	431	101
Total part-time employees	1,752	1,758	1,710	2,252	1,798
Total	60,082	59,426	60,340	61,235	51,769


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 13

Table 15: Summary of Business Segment Net Income and Revenue (Unaudited) (a)


	Three months ended
	March 31		December 31		September 30		June 30		March 31
In millions	2022		2021		2021		2021		2021
Income
Retail Banking	$	340	$	362	$	447	$	232	$	607
Corporate & Institutional Banking	956		1,334		1,123		809		1,058
Asset Management Group	102		106		114		87		99
Other	10		(509)		(210)		(37)		52
Net income excluding noncontrolling interests	$	1,408	$	1,293	$	1,474	$	1,091	$	1,816

Revenue
Retail Banking	$	2,276	$	2,408	$	2,375	$	2,203	$	2,016
Corporate & Institutional Banking	1,964		2,281		2,306		1,959		1,808
Asset Management Group	386		388		397		356		322
Other	66		50		119		149		74
Total revenue	$	4,692	$	5,127	$	5,197	$	4,667	$	4,220

(a)Our business information is presented based on our internal management reporting practices. Net interest income in business segment results reflects PNC’s internal funds transfer pricing methodology. Assets receive a funding charge and liabilities and capital receive a funding credit based on a transfer pricing methodology that incorporates product repricing characteristics, tenor and other factors.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 14

Table 16: Retail Banking (Unaudited) (a)


	Three months ended
	March 31			December 31			September 30			June 30			March 31
Dollars in millions	2022			2021			2021			2021			2021
Income Statement
Net interest income	$	1,531		$	1,634		$	1,713		$	1,497		$	1,362
Noninterest income	745			774			662			706			654
Total revenue	2,276			2,408			2,375			2,203			2,016
Provision for (recapture of) credit losses	(81)			55			(113)			214			(257)
Noninterest expense	1,892			1,874			1,889			1,677			1,476
Pretax earnings	465			479			599			312			797
Income taxes	109			112			140			73			183
Noncontrolling interests	16			5			12			7			7
Earnings	$	340		$	362		$	447		$	232		$	607
Average Balance Sheet
Loans held for sale	$	1,183		$	1,425		$	1,583		$	1,405		$	891
Loans
Consumer
Residential real estate	$	31,528		$	30,888		$	30,702		$	21,653		$	17,468
Home equity	22,458			22,572			23,047			22,080			21,833
Automobile	16,274			16,944			17,377			14,888			13,890
Credit card	6,401			6,513			6,484			5,900			5,819
Education	2,532			2,620			2,712			2,812			2,938
Other consumer	2,348			2,612			2,892			2,175			1,898
Total consumer	81,541			82,149			83,214			69,508			63,846
Commercial	11,610			12,844			15,895			14,796			13,743
Total loans	$	93,151		$	94,993		$	99,109		$	84,304		$	77,589
Total assets	$	111,754		$	113,782		$	117,394		$	100,948		$	92,891
Deposits
Noninterest-bearing	$	64,058		$	65,510		$	65,985		$	54,260		$	44,845
Interest-bearing	201,021			197,312			196,006			178,946			163,389
Total deposits	$	265,079		$	262,822		$	261,991		$	233,206		$	208,234
Performance Ratios
Return on average assets	1.23		%	1.26		%	1.51		%	0.92		%	2.65		%
Noninterest income to total revenue	33		%	32		%	28		%	32		%	32		%
Efficiency	83		%	78		%	80		%	76		%	73		%

(a)See note (a) on page 13.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 15

Retail Banking (Unaudited) (Continued)


	Three months ended
	March 31			December 31			September 30			June 30			March 31
Dollars in millions, except as noted	2022			2021			2021			2021			2021
Supplemental Noninterest Income Information
Asset management and brokerage	$	134		$	131		$	122		$	110		$	102
Card and cash management	$	308		$	347		$	346		$	324		$	264
Lending and deposit services	$	164		$	157		$	180		$	148		$	134
Residential and commercial mortgage	$	99		$	101		$	147		$	103		$	105
Residential Mortgage Information
Residential mortgage servicing statistics (in billions, except as noted) (a)
Serviced portfolio balance (b)	$	135		$	133		$	139		$	145		$	117
Serviced portfolio acquisitions	$	6		$	2		$	2		$	33		$	7
MSR asset value (b)	$	1.3		$	1.1		$	1.1		$	1.1		$	1.0
MSR capitalization value (in basis points) (b)	98			81			81			77			83
Servicing income: (in millions)
Servicing fees, net (c)	$	33		$	14		$	18		$	(3)		$	5
Mortgage servicing rights valuation, net of economic hedge	$	2		$	2		$	24		$	24		$	14
Residential mortgage loan statistics
Loan origination volume (in billions)	$	5.1		$	6.6		$	7.4		$	6.5		$	4.3
Loan sale margin percentage	2.45		%	2.55		%	3.01		%	2.67		%	3.28		%
Percentage of originations represented by:
Purchase volume (d)	42		%	38		%	47		%	48		%	34		%
Refinance volume	58		%	62		%	53		%	52		%	66		%
Other Information (b)
Customer-related statistics (average)
Non-teller deposit transactions (e)	64		%	64		%	66		%	65		%	66		%
Digital consumer customers (f)	78		%	79		%	80		%	80		%	79		%
Credit-related statistics
Nonperforming assets	$	1,168		$	1,220		$	1,220		$	1,245		$	1,229
Net charge-offs - loans and leases	$	141		$	124		$	82		$	79		$	108
Other statistics
ATMs	9,502			9,523			9,572			9,636			8,874
Branches (g)	2,591			2,629			2,712			2,724			2,137
Brokerage account client assets (in billions) (h)	$	74		$	78		$	76		$	83		$	61

(a)Represents mortgage loan servicing balances for third parties and the related income.

(b)Presented as of period end, except for average customer-related statistics and net charge-offs, which are both shown for the three months ended.

(c)Servicing fees net of impact of decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan payments, prepayments, and loans that were paid down or paid off during the period.

(d)Mortgages with borrowers as part of residential real estate purchase transactions.

(e)Percentage of total consumer and business banking deposit transactions processed at an ATM or through our mobile banking application.

(f)Represents consumer checking relationships that process the majority of their transactions through non-teller channels.

(g)Excludes stand-alone mortgage offices and satellite offices (e.g., drive-ups, electronic branches and retirement centers) that provide limited products and/or services.

(h)Includes cash and money market balances.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 16

Table 17: Corporate & Institutional Banking (Unaudited) (a)


	Three months ended
	March 31			December 31			September 30			June 30			March 31
Dollars in millions	2022			2021			2021			2021			2021
Income Statement
Net interest income	$	1,160		$	1,228		$	1,250		$	1,092		$	1,001
Noninterest income	804			1,053			1,056			867			807
Total revenue	1,964			2,281			2,306			1,959			1,808
Provision for (recapture of) credit losses	(118)			(369)			(99)			104			(282)
Noninterest expense	837			975			980			813			711
Pretax earnings	1,245			1,675			1,425			1,042			1,379
Income taxes	285			337			299			229			318
Noncontrolling interests	4			4			3			4			3
Earnings	$	956		$	1,334		$	1,123		$	809		$	1,058
Average Balance Sheet
Loans held for sale	$	628		$	539		$	541		$	564		$	691
Loans
Commercial
Commercial and industrial	$	141,622		$	137,079		$	134,128		$	121,232		$	114,944
Commercial real estate	32,433			33,559			35,368			30,118			27,182
Equipment lease financing	6,099			6,184			6,300			6,332			6,332
Total commercial	180,154			176,822			175,796			157,682			148,458
Consumer	8			12			20			13			9
Total loans	$	180,162		$	176,834		$	175,816		$	157,695		$	148,467
Total assets	$	200,724		$	198,874		$	202,268		$	181,770		$	170,531
Deposits
Noninterest-bearing	$	86,178		$	88,023		$	85,869		$	75,570		$	66,666
Interest-bearing	68,429			72,397			77,247			69,443			69,668
Total deposits	$	154,607		$	160,420		$	163,116		$	145,013		$	136,334
Performance Ratios
Return on average assets	1.93		%	2.66		%	2.20		%	1.79		%	2.52		%
Noninterest income to total revenue	41		%	46		%	46		%	44		%	45		%
Efficiency	43		%	43		%	42		%	42		%	39		%
Other Information
Consolidated revenue from:
Treasury Management (b)	$	546		$	560		$	592		$	523		$	494
Commercial mortgage banking activities:
Commercial mortgage loans held for sale (c)	$	16		$	42		$	44		$	29		$	30
Commercial mortgage loan servicing income (d)	68			90			88			66			90
Commercial mortgage servicing rights valuation, net of economic hedge	13			16			14			33			17
Total	$	97		$	148		$	146		$	128		$	137
MSR asset value (e)	$	886		$	740		$	703		$	682		$	702
Average loans by C&IB business
Corporate Banking	$	92,503		$	87,284		$	85,208		$	77,645		$	74,459
Real Estate	43,213			44,787			47,335			41,188			38,395
Business Credit	26,535			26,065			25,540			22,965			21,552
Commercial Banking	10,045			10,924			13,458			12,513			10,807
Other	7,866			7,774			4,275			3,384			3,254
Total average loans	$	180,162		$	176,834		$	175,816		$	157,695		$	148,467
Credit-related statistics
Nonperforming assets (e)	$	866		$	1,007		$	1,061		$	1,274		$	658
Net charge-offs - loans and leases	$	(1)		$	(1)		$	13		$	233		$	44

(a)See note (a) on page 13.

(b)Amounts are reported in net interest income and noninterest income.

(c)Represents commercial mortgage banking income for valuations on commercial mortgage loans held for sale and related commitments, derivative valuations, origination fees, gains on sale of loans held for sale and net interest income on loans held for sale.

(d)Represents net interest income and noninterest income from loan servicing, net of reduction in commercial mortgage servicing rights due to ammortization expense and payoffs. Commercial mortgage servicing rights valuation, net of economic hedge is shown separately.

(e)Presented as of period end.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 17

Table 18: Asset Management Group (Unaudited) (a)


	Three months ended
	March 31			December 31			September 30			June 30			March 31
Dollars in millions, except as noted	2022			2021			2021			2021			2021
Income Statement
Net interest income	$	138		$	130		$	141		$	112		$	93
Noninterest income	248			258			256			244			229
Total revenue	386			388			397			356			322
Provision for (recapture of) credit losses	2			(15)			(6)			23			(9)
Noninterest expense	251			265			255			219			202
Pretax earnings	133			138			148			114			129
Income taxes	31			32			34			27			30
Earnings	$	102		$	106		$	114		$	87		$	99
Average Balance Sheet
Loans
Consumer
Residential real estate	$	6,989		$	6,295		$	5,727		$	4,439		$	3,635
Other consumer	4,541			4,535			4,544			4,190			4,008
Total consumer	11,530			10,830			10,271			8,629			7,643
Commercial	1,848			2,093			2,693			1,415			756
Total loans	$	13,378		$	12,923		$	12,964		$	10,044		$	8,399
Total assets	$	13,801		$	13,317		$	13,805		$	10,640		$	8,873
Deposits
Noninterest-bearing	$	3,458		$	3,025		$	4,332		$	2,537		$	1,754
Interest-bearing	29,830			26,318			24,984			20,894			18,825
Total deposits	$	33,288		$	29,343		$	29,316		$	23,431		$	20,579
Performance Ratios
Return on average assets	3.00		%	3.16		%	3.28		%	3.28		%	4.52		%
Noninterest income to total revenue	64		%	66		%	64		%	69		%	71		%
Efficiency	65		%	68		%	64		%	62		%	63		%
Other Information
Nonperforming assets (b)	$	72		$	62		$	80		$	85		$	68
Net charge-offs (recoveries) - loans and leases	$	2		$	1		$	(1)		$	2
Brokerage account client assets (in billions) (b)	$	5		$	5		$	5		$	5
Client Assets Under Administration (in billions) (b) (c)
Discretionary client assets under management	$	182		$	192		$	183		$	183		$	173
Nondiscretionary client assets under administration	165			175			170			172			161
Total	$	347		$	367		$	353		$	355		$	334
Discretionary client assets under management
PNC Private Bank	$	115		$	123		$	117		$	119		$	110
Institutional Asset Management	67			69			66			64			63
Total	$	182		$	192		$	183		$	183		$	173

(a)See note (a) on page 13.

(b)As of period end.

(c)Excludes brokerage account client assets.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 18

Glossary of Terms

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

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

Allowance for credit losses (ACL) – A valuation account that is deducted from or added to the amortized cost basis of the related

financial assets to present the net carrying value at the amount expected to be collected on the financial asset.

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

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

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

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

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

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

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

BBVA – BBVA USA Bancshares, Inc.

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

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

BlackRock – BlackRock, Inc.

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

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

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

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

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


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 19

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

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

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

Efficiency - Noninterest expense divided by total revenue.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 20

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

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

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

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

The PNC Financial Services Group, Inc. (PNC) 8-KResults of Operations and Financial Condition