PNC Financial Services : Presentation Q1 2026

Published: 2026-04-15 06:34:10 ET PNC

Published on 04/15/2026 at 06:34 am EDT

Earnings Conference Call April 15, 2026

Successfully closed FirstBank acquisition on 1/5/2026

Strong legacy loan growth driven by new production and higher utilization

Increased net interest income and net interest margin

Expenses continue to be well-controlled

Credit quality remains strong

Maintained strong capital position; Returned $1.4 billion to shareholders including $0.7 billion of share repurchases

Note: Comparison made to linked quarter unless otherwise noted. For non-GAAP figures, see reconciliation in the appendix.

1Q26 Financial Highlights

+7%

Average Loans

+2%

Total Revenue

$1.8 billion

Net Income

$4.13

Diluted Earnings per Share (EPS)

$4.32

Adjusted Diluted EPS (non-GAAP)

Year over Year

Linked Quarter

Balance Sheet Summary

Average balances, $ billions

1Q26

Total loans

$350.9

$23.0

$34.3

11%

Investment securities

$144.5

$2.3

Federal Reserve Bank balances

$31.8

$0.5

$(2.4)

(7)%

Total deposits

$458.4

$18.8

$37.7

Borrowed funds

$62.9

$2.6

$(1.6)

(3)%

Common shareholders' equity

$57.4

$3.8

$8.2

17%

Period end

3/31/26

12/31/25

3/31/25

YoY

AOCI ($ billions)

$(3.8)

$(3.4)

$(0.4)

$(5.2)

$1.5

Tangible book value per common share (non-GAAP)

$109.42

$112.51

(3)%

$100.40

Basel III CET1 capital ratio

10.1%

10.6%

(50) bps

10.6%

(50) bps

Note: AOCI = accumulated other comprehensive income (loss). For non-GAAP figures, see reconciliation in the appendix. Footnotes are presented on slide 26.

$ billions

Note: YoY = year over year. LQ = linked quarter. C&I = commercial and industrial. CRE = commercial real estate. Legacy = PNC ex. FirstBank. Totals may not sum due to rounding.

Average loans increased 7% LQ and 11% YoY

$351

$328

$317

C&I: +6% LQ and

+15% YoY

Total Loan Yield:

(10) bps LQ

CRE: +14% LQ and

+4% YoY

Consumer: +6% LQ and YoY

1Q25

Consumer

4Q25

CRE C&I

1Q26

Total Loan Yield

$99

$100

$105

$30

$33

$34

5.70%

$184

5.60%

$199

5.50%

$211

9% growth driven by FirstBank acquisition and legacy C&I growth

$15.1

$0.1

$360.9

$(1.2)

$15.5

$331.5

4Q25

C&I Legacy

CRE

Legacy

Consumer Legacy

1Q26

$ billions

Note: NIB = noninterest-bearing deposits. IB = interest-bearing deposits. Legacy = PNC ex. FirstBank. Totals may not sum due to rounding.

Deposit balances increased 4% while rate paid declined 18 bps

$458

$421

$440

1Q25

NIB

4Q25

1Q26

Rate Paid on Total IB

$95

$92

$99

2.23%

$328

2.14%

$345

1.96%

$359

4% growth driven by FirstBank acquisition offset by lower brokered CDs

$21.9

$3.3

$458.4

$(3.5)

$(2.8)

$439.5

4Q25

Brokered CDs

Consumer Commercial

1Q26

Legacy

Year over Year

Linked Quarter

Income Statement Summary

$ millions except EPS

1Q26

Net interest income

$3,961

$230

$485

14%

Noninterest income

2,204

(136)

(6)%

228

12%

Total revenue

$6,165

$94

$713

13%

Noninterest expense

3,768

165

381

11%

Noninterest expense, ex. integration expense (non-GAAP)

3,671

284

Pretax, pre-provision earnings, ex. integration costs (non-GAAP)

$2,495

$27

$430

21%

Provision for credit losses

210

51%

(9)

(4)%

Income taxes

415

119

40%

20%

Net income

$1,772

$(261)

(13)%

$273

18%

Diluted EPS

$4.13

$(0.75)

(15)%

$0.62

18%

Adjusted diluted EPS (non-GAAP)

$4.32

$(0.56)

(11)%

$0.81

23%

Note: Adjusted diluted EPS excludes 1Q26 integration costs. For non-GAAP figures, see reconciliation in the appendix.

Asset management and brokerage

420

Capital markets and advisory

463

(5)%

51%

Card and cash management

738

Lending and deposit services

340

(1)%

Residential and commercial mortgage

118

(20)%

(12)%

Fee income (non-GAAP)

Other noninterest income

$2,079

125

(2)%

(42)%

13%

(9)%

Noninterest income

$2,204

(6)%

12%

Total revenue

$6,165

13%

$ millions

Note: YoY = year over year. LQ = linked quarter. Net interest margin is calculated using taxable-equivalent net interest income, a non-GAAP measure. For non-GAAP figures, see reconciliation in the appendix.

Net Interest Income

Noninterest Income

Net Interest Margin

$6,071

$6,165

$5,452

1Q25

4Q25

1Q26

2.78%

$3,476

2.84%

$3,731

2.95%

$3,961

$1,976

$2,340

$2,204

Net interest income

$3,961

14%

YoY

1Q26

$ millions

% Change

Personnel

$2,106

11%

Occupancy

262

Equipment

415

Marketing

(14)%

Other

898

11%

15%

Total noninterest expense

$3,768

11%

Integration expense

Noninterest expense, ex. integration expense (non-GAAP)

(97)

$3,671

YoY

1Q26

$ millions

% Change

$ millions

Note: YoY = year over year. LQ = linked quarter. 1Q25 and 4Q25 noninterest expense are shown on a GAAP basis. For non-GAAP figures, see reconciliation in the appendix.

Noninterest expense, ex. integration expense (non-GAAP)

$3,603

Integration expense

$3,768

$3,387

$97

1Q25

4Q25

1Q26

$3,387

$3,603

$3,671

1Q25 4Q25 1Q26

NPLs / Total Loans (Period end) 0.72% 0.67% 0.62%

Delinquencies / Total Loans1 (Period end) 0.45% 0.44% 0.43%

NCOs / Average Loans2 0.26% 0.20% 0.29%

$ millions

Allowance for Credit Losses to Total Loans 1.64% 1.58% 1.52%

0.24% ex. $45m of acquired NCOs

Commercial

Consumer

$208m ex. $45m of acquired NCOs

$205

$162

$253

1Q25

4Q25

1Q26

Commercial

Consumer

Includes $163m of FirstBank DQs

$1,431

$1,048

$1,443

$989

$1,558

$1,049

$383

$454

$509

3/31/25

12/31/25

3/31/26

$ millions

Note: Footnotes are presented on slide 26.

Commercial

Consumer

Includes $81m of FirstBank NPLs

$2,292

$2,218

3/31/25

12/31/25

3/31/26

$1,380

$1,358

$1,467

$860

$863

$825

$2,243

~90% of loans are investment-grade

Mortgage and Consumer Credit Intermediaries (6%) Primarily multifamily agency

$33 billion of Loans to Business Credit Intermediaries

warehouse facilities

3/31/26

$26

Loans to bankruptcy-remote subsidiaries of corporate borrowers, collateralized by diversified pools of assets, including accounts receivable, leases and other high-quality asset classes

Private Equity Funds (34%) Capital commitment lines, real estate funds

$25

20% of loans

$10

Highly structured, investment-grade facilities, secured by diversified portfolios of senior-secured leveraged loans. ~90% are CLO securitizations

All Other (15%) REITs, insurance companies, etc.

Second Quarter 2026 Guidance1,2

(1Q26 baseline: $350.9 billion)

(1Q26 baseline: $3,961 million)

(1Q26 baseline: $2,079 million)

(1Q26: $125 million)

(1Q26 baseline: $6,165 million)

(1Q26 baseline: $3,671 million)

(1Q26: $253 million)

Note: Refer to Cautionary Statement in the Appendix, including economic and other assumptions. Does not take into account impact of potential legal and regulatory contingencies. For non-GAAP figures, see reconciliation in the appendix. Footnotes are presented on slide 26.

Previous FY26 Guidance Current FY26 Guidance1,2

(FY25 baseline: $323.4 billion)

Up ~8%

(FY25 baseline: $14,410 million)

Up ~14% Up ~14.5%

(FY25 baseline: $8,689 million)

Up ~6%

(FY25 baseline: $23,099 million)

Up ~11% Up ~11%

(FY25 baseline: $13,834 million)

Up ~7%

(FY25: 17.5%)

~19.5% ~19.5%

We make statements in this presentation, 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,

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

− 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. These statements are based on our views that:

− PNC's baseline forecast remains for continued expansion in 2026, but slower economic growth in 2026 than in 2024 and 2025. The baseline forecast anticipates real GDP growth slowing to around 1.9% in 2026, with continued modest job gains and the unemployment rate moving slightly higher, to around 4.6% at year's end. CPI inflation will peak at around 3.5% in mid-2026, with core CPI inflation at around 2.6%. An extended conflict with Iran and higher energy prices are significant risks to the outlook, both for inflation and growth, and a reversal in sentiment around AI or a large decline in equity prices would be drags. Weaker labor force growth could lead to weaker long-run growth.

− Our baseline forecast is for the Federal Reserve to keep the federal funds rate unchanged throughout 2026 and into 2027, in a range between 3.50% and 3.75%. However, there are two-sided risks to this outlook: (1) if the conflict with Iran persists and inflation proves more persistent than expected the Federal Reserve may raise rates, or (2) if growth falters or recession emerges there could be a deep and prolonged easing in monetary policy.

PNC's ability to take certain capital actions, including returning capital to shareholders, is subject to PNC meeting or exceeding minimum capital levels, including a stress capital buffer established by the Federal Reserve Board in connection with the Federal Reserve Board's Comprehensive Capital Analysis and Review (CCAR) process.

PNC's regulatory capital ratios in the future will depend on, among other things, PNC'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.

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

Noninterest expense, ex. integration expense (non-GAAP)

For the three months ended $ Change % Change

$ millions

Mar. 31, 2026

Dec. 31, 2025

Mar. 31, 2025

YoY

Total noninterest expense

$3,768

$3,603

$3,387

$165

$381

11%

Integration expense

(97)

Noninterest expense, ex. integration expense (non-GAAP)

$3,671

$3,603

$3,387

$68

$284

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

Pretax, Pre-Provision Earnings, ex. integration cost (non-GAAP)

For the three months ended

$ millions

Mar. 31, 2026

Dec. 31, 2025

Mar. 31, 2025

Total revenue

$6,165

$6,071

$5,452

Total noninterest expense

3,768

3,603

3,387

Pretax, Pre-Provision Earnings (non-GAAP)

$2,397

$2,468

$2,065

Integration costs

Pretax, Pre-Provision Earnings, ex. integration costs (non-GAAP)

$2,495

$2,468

$2,065

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

Adjusted Diluted Earnings per Share (non-GAAP)

For the three months ended

$ millions, except per share

Mar. 31, 2026

Per common share

Net income attributable to diluted common shareholders

$1,675

$4.13

Integration costs, after tax

0.19

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

$1,752

$4.32

Average diluted common shares outstanding (millions)

405

Note: Statutory tax rate of 21% used to calculate integration costs, after tax. The adjusted diluted earnings per common share excluding integration costs is a non-GAAP measure and excludes the integration costs related to the FirstBank acquisition. It is calculated based on adjusting net income attributable to diluted common shareholders by removing post-tax integration costs in the period. We believe this non-GAAP measure serves as a useful tool in understanding PNC's results by providing greater comparability between periods, as well as demonstrating the effect of significant items.

Fee Income (non-GAAP)

For the three months ended

$ millions

Mar. 31, 2026

Dec. 31, 2025

Mar. 31, 2025

Noninterest income

Asset management and brokerage

$420

$411

$391

Capital markets and advisory

463

489

306

Card and cash management

738

733

692

Lending and deposit services

340

342

316

Residential and commercial mortgage

118

148

134

Fee income (non-GAAP)

$2,079

$2,123

$1,839

Other income

125

217

137

Total noninterest income

$2,204

$2,340

$1,976

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

Taxable-Equivalent Net Interest Income (non-GAAP)

For the three months ended

$ millions Mar. 31, 2026 Dec. 31, 2025 Mar. 31, 2025

Net interest income $3,961 $3,731 $3,476 Taxable-equivalent adjustments 29 31 28

Taxable-Equivalent Net Interest Income (non-GAAP) $3,990 $3,762 $3,504

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

Tangible Book Value per Common Share (non-GAAP)

For the three months ended

$ millions, except per share data

Mar. 31, 2026

Dec. 31, 2025

Mar. 31, 2025

Book value per common share

$143.65

$140.44

$127.98

Tangible book value per common share

Common shareholders' equity

$57,752

$54,828

$50,654

Goodwill and other intangible assets

(14,174)

(11,138)

(11,154)

Deferred tax liabilities on goodwill and other intangible assets

416

237

239

Tangible common shareholders' equity

$43,994

$43,927

$39,739

Period end common shares outstanding (in millions)

402

390

396

Tangible Book Value per Common Share (non-GAAP)

$109.42

$112.51

$100.40

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

Tangible Common Equity Ratio (non-GAAP)

For the three months ended

$ millions

Mar. 31, 2026

Dec. 31, 2025

Mar. 31, 2025

Tangible common shareholders' equity

Common shareholders' equity

$57,752

$54,828

$50,654

Goodwill and other intangible assets

(14,174)

(11,138)

(11,154)

Deferred tax liabilities and other intangible assets

416

237

239

Tangible common shareholders' equity

$43,994

$43,927

$39,739

Tangible assets

Total assets

$603,028

$573,572

$554,722

Goodwill and other intangible assets

(14,174)

(11,138)

(11,154)

Deferred tax liabilities on goodwill and other intangible assets

416

237

239

Tangible assets

$589,270

$562,671

$543,807

Tangible common equity ratio (non-GAAP)

7.47%

7.81%

7.31%

Tangible common equity ratio is a non-GAAP measure and is calculated based on tangible common shareholders' equity divided by tangible assets. We believe this non-GAAP measure to be a key financial metric in assessing capital adequacy.

Return On Average Tangible Common Equity (non-GAAP)

For the three months ended

$ millions

Mar. 31, 2026

Dec. 31, 2025

Mar. 31, 2025

Return on average common shareholders' equity

11.92%

14.33%

11.60%

Average common shareholders' equity

$57,382

$53,550

$49,217

Average goodwill and other intangible assets

(14,056)

(11,149)

(11,162)

Average deferred tax liabilities on goodwill and other intangible assets

327

240

Average tangible common equity

$43,653

$42,641

$38,295

Net income attributable to common shareholders

$1,686

$1,934

$1,408

Net income attributable to common shareholders, annualized

$6,838

$7,672

$5,711

Return on average tangible common equity (non-GAAP)

15.66%

17.99%

14.91%

Return on average tangible common equity is a non-GAAP financial measure and is calculated based on annualized net income attributable to common shareholders divided by tangible common equity. We believe that return on average tangible common equity is useful as a tool to help measure and assess a company's use of common equity.

For the three months ended For the year ended

$ millions

Mar. 31, 2026

Jun. 30, 2026

Sep. 30, 2026

Dec. 31, 2026

Preferred dividends

$73

$86

$73

$98

$329

The above represents our current estimate for preferred dividends in 2026 for currently outstanding series as of April 15, 2026. This estimate is based on the forward curve as of March 31, 2026, and assumes that current preferred stock remains outstanding.

Slide 4 - Larger Balance Sheet Reflects Strong Organic Growth and FirstBank Acquisition

Basel III common equity Tier (CET) 1 capital ratio - 3/31/26 ratio as used in this presentation is estimated. Details of the calculation are in the financial highlights section of the earnings release.

Slide 10 - Strong Credit Quality

Delinquencies represent accruing loans past due 30 days or more. Delinquencies to Total Loans represent delinquencies divided by period end loans.

Net loan charge-offs (NCOs) / Average Loans represent annualized net loan charge-offs to average loans for the three months ended.

Slide 12 - Second Quarter 2026 Outlook

Average loans, net interest income, fee income, total revenue and noninterest expense ex. integration expense outlooks represent estimated percentage change for 2Q26 compared to the respective 1Q26 figures presented in the table.

The 2Q26 guidance range for total revenue and other noninterest income does not forecast net securities gains or losses and activities related to Visa Class B common shares. The 2Q26 guidance range for noninterest expense ex. integration expense excludes our expectation for non-recurring merger and integration expenses of approximately $150 million.

Slide 13 - Full Year 2026 Outlook

Average loans, net interest income, noninterest income, total revenue and noninterest expense ex. integration expense outlooks represent estimated percentage change for 2026 compared to the respective 2025 figures presented in the table.

The 2026 guidance range for total revenue and noninterest income does not forecast net securities gains or losses and activities related to Visa Class B common shares. The 2026 guidance range for noninterest expense ex. integration expense excludes our expectation for non-recurring merger and integration expenses of approximately $325 million, the majority of which we expect to be recognized in the first half of 2026.

Disclaimer

The PNC Financial Services Group Inc. published this content on April 15, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 15, 2026 at 10:33 UTC.