PNC Financial Services PNC Form 10-Q filing Q1 FY2026

Item 1. Financial Statements (Unaudited).

Consolidated Income Statement 44

Consolidated Statement of Comprehensive Income 45

Consolidated Balance Sheet 46

Consolidated Statement of Cash Flows 47

Notes to Consolidated Financial Statements (Unaudited)

Note 1 Accounting Policies 49

Note 2 Acquisition Activity 50

Note 3 Investment Securities 53

Note4Loans and Related Allowance for Credit Losses 56

Note5Loan Sale and Servicing Activities and Variable Interest Entities 66

Note6Goodwill and Mortgage Servicing Rights 68

Note7Leases 70

Note8Borrowed Funds 70

Note9Commitments 71

Note10Total Equity and Other Comprehensive Income 72

Note 11Earnings Per Share 74

Note 12Fair Value 75

Note 13Financial Derivatives 82

Note 14Legal Proceedings 88

Note 15Segment Reporting 89

Note 16Fee-based Revenue from Contracts with Customers 91

Note 17 Subsequent Events 92

Glossary 93

Defined Terms 93

Acronyms 93

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A).

Financial Review 1

Executive Summary 1

Consolidated Income Statement Review 5

Consolidated Balance Sheet Review 8

Business Segments Review 11

Risk Management 18

Average Consolidated Balance Sheet and Net Interest Analysis 36

Non-GAAP Financial Information 38

Recent Regulatory Developments 38

Critical Accounting Estimates and Judgments 38

Internal Controls and Disclosure Controls and Procedures 41

Item 3. Quantitative and Qualitative Disclosures about Market Risk. 21-38, 49-50, 83-89

Item 4. Controls and Procedures. 41

PART II – OTHER INFORMATION

Item 1. Legal Proceedings 93

Item 1A. Risk Factors 93

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 93

Item 5. Other Information 94

Item 6. Exhibits 94

Exhibit Index 94

Corporate Information 95

Signature 96

MD&A TABLE REFERENCE / Table MD&A TABLE REFERENCE / Description Page

(1) Summary of Operations, Per Common Share Data and Performance Ratios 2 (2) Balance Sheet Highlights and Other Selected Ratios 2 (3) Summarized Average Balances and Net Interest Income 5 (4) Noninterest Income 6 (5) Noninterest Expense 7 (6) Provision for Credit Losses 7 (7) Summarized Balance Sheet Data 8 (8) Loans 9 (9) Investment Securities 9 (10) Weighted-Average Expected Maturities of Mortgage and Asset-Backed Debt Securities 10 (11) Details of Funding Sources 10 (12) Retail Banking Table 12 (13) Corporate & Institutional Banking Table 14 (14) Asset Management Group Table 17 (15) Details of Loans 19 (16) Commercial and Industrial Loans by Industry 20 (17) Commercial Real Estate Loans by Geography and Property Type 21 (18) Residential Real Estate Loan Statistics 22 (19) Home Equity Loan Statistics 23 (20) Nonperforming Assets by Type 24 (21) Change in Nonperforming Assets 24 (22) Accruing Loans Past Due 25 (23) Allowance for Credit Losses by Loan Class 26 (24) Loan Charge-Offs and Recoveries 27 (25) Senior and Subordinated Debt 28 (26) Primary Contingent Liquidity Sources 28 (27) PNC Bank Notes Redeemed 29 (28) Parent Company Notes Issued 30 (29) Parent Company Notes Redeemed 30 (30) Credit Ratings and Outlook 31 (31) Basel III Capital 32 (32) Net Interest Income Sensitivity Analysis 33 (33) Economic Value of Equity Sensitivity Analysis 34 (34) Equity Investments Summary 34 (35) Average Consolidated Balance Sheet and Net Interest Analysis 36 (36) Reconciliation of Taxable-Equivalent Net Interest Income (non-GAAP) 38 (37) Key Macroeconomic Variables in CECL Weighted-Average Scenarios 40

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS TABLE REFERENCE / Table NOTES TO CONSOLIDATED FINANCIAL STATEMENTS TABLE REFERENCE / Description Page

(38) Acquisition Consideration 51 (39) Fair Value and Unpaid Principal Balance of Loans from the FirstBank Acquisition 51 (40) PCD Loan Activity 52 (41) PSL Activity 52 (42) Investment Securities Summary 53 (43) Gross Unrealized Loss and Fair Value of Securities Available-for-Sale Without an Allowance for Credit Losses 54 (44) Gains (Losses) on Sales of Securities Available-for-Sale 54 (45) Contractual Maturity of Debt Securities 55 (46) Fair Value of Securities Pledged and Accepted as Collateral 55 (47) Analysis of Loan Portfolio 57 (48) Nonperforming Assets 58 (49) Commercial Credit Quality Indicators 59 (50) Credit Quality Indicators for Residential Real Estate and Home Equity Loan Classes 60 (51) Credit Quality Indicators for Automobile, Credit Card and Other Consumer Loan Classes 62 (52) Loan Modifications Granted to Borrowers Experiencing Financial Difficulty 64 (53) Financial Effect of FDMs 64 (54) Delinquency Status of FDMs 65 (55) Consumer FDMs 65 (56) Rollforward of Allowance for Credit Losses 66 (57) Loan Sale and Servicing Activities 67 (58) Principal Balance, Delinquent Loans and Net Charge-offs Related to Serviced Loans For Others 67 (59) Non-Consolidated VIEs 68 (60) Mortgage Servicing Rights 69 (61) Commercial Mortgage Servicing Rights – Key Valuation Assumptions 69 (62) Residential Mortgage Servicing Rights – Key Valuation Assumptions 70 (63) Lessor Income 70 (64) Borrowed Funds 70 (65) FHLB Advances, Senior Debt and Subordinated Debt 71 (66) Commitments to Extend Credit and Other Commitments 71 (67) Rollforward of Total Equity 72 (68) Other Comprehensive Income (Loss) 73 (69) Accumulated Other Comprehensive Income (Loss) Components 73 (70) Dividends Per Share 73 (71) Basic and Diluted Earnings Per Common Share 74 (72) Fair Value Measurements – Recurring Basis Summary 75 (73) Reconciliation of Level 3 Assets and Liabilities 76 (74) Fair Value Measurements – Recurring Quantitative Information 78 (75) Fair Value Measurements – Nonrecurring 79 (76) Fair Value Option – Fair Value and Principal Balances 80 (77) Fair Value Option – Changes in Fair Value 80 (78) Additional Fair Value Information Related to Other Financial Instruments 81 (79) Total Gross Derivatives 83 (80) Gains (Losses) Recognized on Fair Value and Cash Flow Hedges in the Consolidated Income Statement 85 (81) Hedged Items - Fair Value Hedges 85 (82) Gains (Losses) on Derivatives Not Designated for Hedging under GAAP 86 (83) Derivative Assets and Liabilities Offsetting 87 (84) Credit-Risk Contingent Features 88 (85) Business Segment Results 90 (86) Reconciliation of Business Segment Results to Consolidated 91 (87) Noninterest Income by Business Segment and Reconciliation to Consolidated Noninterest Income 92

FINANCIAL REVIEW

THE PNC FINANCIAL SERVICES GROUP, INC.

This Financial Review, including the Consolidated Financial Highlights, should be read together with our unaudited Consolidated Financial Statements included elsewhere in this Quarterly Report on Form 10-Q (the “Report” or “Form 10-Q”) and with Items 7, 8 and 9A of our 2025 Annual Report on Form 10-K (our “2025 Form 10-K”). For information regarding certain business, regulatory and legal risks, see the following: the Risk Management section of this Financial Review and Item 7 in our 2025 Form 10-K; Item 1A Risk Factors included in our 2025 Form 10-K; and the Commitments and Legal Proceedings Notes included in this Report and Item 8 of our 2025 Form 10-K. Also, see the Cautionary Statement Regarding Forward-Looking Information section in this Financial Review and the Critical Accounting Estimates and Judgments section in this Financial Review and in our 2025 Form 10-K for certain other factors that could cause actual results or future events to differ, perhaps materially, from historical performance and from those anticipated in the forward-looking statements included in this Report. See Note 14 Segment Reporting for a reconciliation of total business segment earnings to total PNC consolidated net income as reported on a GAAP basis. In this Report, “PNC,” “we” or “us” refers to The PNC Financial Services Group, Inc. and its subsidiaries on a consolidated basis (except when referring to PNC as a public company, its common stock or other securities issued by PNC, which just refer to The PNC Financial Services Group, Inc.). References to The PNC Financial Services Group, Inc. or to any of its subsidiaries are specifically made where applicable.

See page 93 for a glossary of certain terms and acronyms used in this Report.

EXECUTIVE SUMMARY

Headquartered in Pittsburgh, Pennsylvania, we are one of the largest diversified financial institutions in the U.S. We have businesses engaged in retail banking, corporate and institutional banking and asset management, providing many of our products and services nationally. Our retail branch network is located coast-to-coast. We also have strategic international offices in four countries outside the U.S.

At PNC we manage our company for the long term. We are focused on the fundamentals of growing customers, loans, deposits and revenue and improving profitability, while investing for the future and managing risk, expenses and capital. We continue to invest in our products, markets and brand, and embrace our commitments to our customers, shareholders, employees and the communities where we do business.

We strive to serve our customers and expand and deepen relationships by offering a broad range of deposit, credit and fee-based products and services. We are focused on delivering those products and services to our customers with the goal of addressing their financial objectives and needs. Our business model is built on customer loyalty and engagement, understanding our customers’ financial goals and offering our diverse products and services to help them achieve financial well-being. Our approach is concentrated on organically growing and deepening client relationships across our businesses that meet our risk/return measures.

Our capital and liquidity priorities are to support customers, fund business investments and return excess capital to shareholders, while maintaining appropriate capital and liquidity in light of economic conditions, the Basel III framework and other regulatory expectations. For more detail, see the Capital and Liquidity Highlights portion of this Executive Summary, the Liquidity and Capital Management portion of the Risk Management section of this Financial Review and the Supervision and Regulation section in Item 1 Business of our 2025 Form 10-K.

Acquisition of FirstBank Holding Company

On January 5, 2026, PNC acquired FirstBank Holding Company including its banking subsidiary, FirstBank, representing $4.2 billion of consideration in cash and PNC common stock to FirstBank Holding Company common shareholders and Series A preferred shareholders, and $0.1 billion of consideration to Series B preferred shareholders through the exchange of each share of Series B preferred stock into a newly created series of preferred stock of PNC, designated Series X. Conversion of FirstBank customers to PNC Bank is expected to occur mid-June 2026. Until conversion, FirstBank will remain a separate bank subsidiary of PNC.

Our results for the three months ended March 31, 2026 reflect the impact of FirstBank’s acquired business operations for the period since the acquisition closed on January 5, 2026. As of close and prior to purchase accounting adjustments, FirstBank had $26.4 billion of assets, $16.0 billion of loans and $23.1 billion of deposits.

For additional information on the acquisition of FirstBank, see Note 2 Acquisition Activity.

The PNC Financial Services Group, Inc. – Form 10-Q 1

Selected Financial Data

The following tables include selected financial data which should be reviewed in conjunction with the Consolidated Financial Statements and Notes included in Item 1 of this Report as well as the other disclosures in this Report concerning our historical financial performance, our future prospects and the risks associated with our business and financial performance.

Table 1: Summary of Operations, Per Common Share Data and Performance Ratios

(a)The Executive Summary and Consolidated Income Statement Review portions of this Financial Review section provide information regarding items impacting the comparability of the periods presented.

(b)See explanation and reconciliation of this non-GAAP measure in the Average Consolidated Balance Sheet and Net Interest Analysis and Non-GAAP Financial Information sections of this Item 2.

Table 2: Balance Sheet Highlights and Other Selected Ratios

(a)The Executive Summary and Consolidated Balance Sheet Review portions of this Financial Review provide information regarding items impacting the comparability of applicable periods presented.

Income Statement Highlights

Net income of $1.8 billion, or $4.13 per diluted common share, for the first quarter of 2026 decreased $261 million, or 13%, compared to $2.0 billion, or $4.88 per diluted common share, for the fourth quarter of 2025, due to increased noninterest expense, lower noninterest income and higher provision for credit losses, partially offset by higher net interest income.

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

• For the three months ended March 31, 2026 compared to the three months ended December 31, 2025:
• Total revenue of $6.2 billion increased $94 million, or 2%.
• Net interest income of $4.0 billion increased $230 million, or 6%, reflecting the benefit of FirstBank, lower funding costs and commercial loan growth.
• Net interest margin increased 11 basis points to 2.95%, reflecting an 18 basis point decline in the rate paid on interest-bearing deposits.
• Noninterest income of $2.2 billion decreased $136 million, or 6%, primarily due to lower private equity revenue, a decline in mortgage servicing rights valuation, net of economic hedge, and lower capital markets and advisory fees.
• Provision for credit losses was $210 million in the first quarter of 2026 and reflected portfolio activity, including loan growth and the addition of FirstBank, as well as updates to macroeconomic factors. The fourth quarter of 2025 included a provision for credit losses of $139 million.
• Noninterest expense increased $165 million, or 5%, and included FirstBank operating and integration expenses, partially offset by seasonally lower marketing spend.

First quarter 2026 net income increased $273 million, or 18%, compared to $1.5 billion, or $3.51 per diluted common share, for the first quarter of 2025, primarily due to higher net interest and noninterest income, partially offset by increased noninterest expense.

• For the three months ended March 31, 2026 compared to the three months ended March 31, 2025:
• Total revenue increased $713 million, or 13%.
• Net interest income increased $485 million, or 14%, reflecting the benefit of FirstBank, loan growth and lower funding costs.
• Net interest margin increased 17 basis points and included the continued benefit of fixed rate asset repricing.
• Noninterest income increased $228 million, or 12%, primarily due to higher capital markets and advisory fees.
• Provision for credit losses was $210 million for the first three months of 2026. The first three months of 2025 included a provision for credit losses of $219 million.
• Noninterest expense increased $381 million, or 11%, compared to the first three months of 2025, and included FirstBank operating and integration expenses, higher personnel costs as a result of increased business activity and higher equipment expenses reflecting continued investments in technology.

For additional detail, see the Consolidated Income Statement Review section of this Financial Review.

Balance Sheet Highlights

Our balance sheet was well positioned at March 31, 2026. In comparison to December 31, 2025:

• Total assets of $603.0 billion increased primarily due to higher loans and higher securities balances, including the impact of the FirstBank acquisition, partially offset by lower balances held with the FRB.
• Total loans of $360.9 billion increased $29.4 billion, or 9%.
• Total commercial loans increased $23.5 billion, or 10%, to $256.0 billion, due to growth in the commercial and industrial portfolio, reflecting new production and higher utilization of loan commitments as well as the addition of FirstBank loans.
• Total consumer loans increased $5.9 billion, or 6%, to $105.0 billion, driven by the benefit of acquired FirstBank residential mortgage loans.
• Investment securities increased $4.9 billion, or 4%, to $143.1 billion, primarily due to the acquisition of FirstBank investment securities and net purchase activity in both the available-for-sale and held-to-maturity portfolios.
• Interest-earning deposits with banks, primarily with the FRB, decreased $6.9 billion, or 21%, to $26.1 billion, as higher loan and security balances outpaced funding growth from deposits and borrowed funds.
• Total deposits increased $16.8 billion, or 4%, driven by higher interest-bearing and noninterest-bearing deposits, primarily due to the addition of FirstBank deposits, partially offset by lower brokered time deposits.
• Borrowed funds increased $9.6 billion, or 17%, to $66.7 billion, primarily due to higher FHLB advances.

For additional detail, see the Consolidated Balance Sheet Review section of this Financial Review.

The PNC Financial Services Group, Inc. – Form 10-Q 3

Credit Quality Highlights

In the first quarter of 2026, PNC maintained strong credit quality performance.

• At March 31, 2026 compared to December 31, 2025:
• Overall loan delinquencies of $1.6 billion increased $115 million, or 8%, due to the addition of FirstBank commercial and consumer loans.
• The ACL related to loans, which consists of the ALLL and the allowance for unfunded lending related commitments, totaled $5.5 billion at March 31, 2026, compared to $5.2 billion at December 31, 2025. The increase was driven by portfolio activity, including the addition of FirstBank loans. ACL to total loans was 1.52% at March 31, 2026, compared to 1.58% at December 31, 2025.
• Nonperforming assets of $2.4 billion were stable.
• Net loan charge-offs of $253 million, or 0.29% of average loans, in the first quarter of 2026 increased $91 million compared to the fourth quarter of 2025, and included $45 million of acquired net loan charge-offs related to purchase accounting treatment for certain FirstBank loans.

For additional detail see the Credit Risk Management portion of the Risk Management section of this Financial Review.

Capital and Liquidity Highlights

We maintained our strong capital and liquidity positions.

• Common shareholders’ equity of $57.8 billion at March 31, 2026, increased $2.9 billion, or 5%, compared to December 31, 2025, primarily due to common stock issuances related to the FirstBank acquisition.
• In the first quarter of 2026, PNC returned $1.4 billion of capital to shareholders, reflecting $0.7 billion of dividends on common shares and $0.7 billion of common share repurchases.
• On April 2, 2026, the PNC Board of Directors declared a quarterly cash dividend on common stock of $1.70 per share paid on May 5, 2026 to shareholders of record at the close of business April 14, 2026.
• Our CET1 ratio was 10.1% at March 31, 2026 and 10.6% at December 31, 2025.

For additional information on our liquidity and capital actions as well as our capital ratios, see Capital Management in the Risk Management section in this Financial Review, the Recent Regulatory Developments section in this Financial Review and the Supervision and Regulation section in our 2025 Form 10-K.

Business Outlook

Statements regarding our business outlook are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. 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:

• PNC’s baseline forecast remains for continued expansion in 2026, but slower economic growth in 2026 than in 2025 and 2024. The baseline forecast anticipates real GDP growth slowing to around 1.7% 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.

Consistent with the forward guidance we provided on April 15, 2026, for the second quarter of 2026, compared to the first quarter of 2026, we expect:

• Average loans to be up 2% to 3%,
• Net interest income to be up approximately 3%,
• Fee income to be up approximately 2.5%,
• Other noninterest income to be $150 million to $200 million,
• Total revenue to be up approximately 3.5%,
• Noninterest expense excluding integration expense to be up approximately 2%, and
• Net loan charge-offs to be approximately $225 million.

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

Consistent with the forward guidance we provided on April 15, 2026, for the full year of 2026, compared to the full year of 2025, we expect:

• Average loans to be up approximately 11%,
• Net interest income to be up approximately 14.5%,
• Noninterest income to be up approximately 6%,
• Total revenue to be up approximately 11%,
• Noninterest expense excluding integration expense to be up approximately 7%, and
• Effective tax rate to be approximately 19.5%.

Other noninterest income, noninterest income and total revenue guidance does not forecast net securities gains or losses, or Visa activity. Additionally, noninterest expense excluding integration expense does not include our expectation for non-recurring merger and integration costs. We expect to incur integration costs of $150 million and $325 million for the second quarter of 2026 and full year of 2026, respectively.

We are unable to provide a meaningful or accurate reconciliation of forward-looking non-GAAP measures, without unreasonable effort, to their most directly comparable GAAP financial measures. This is due to the inherent difficulty of forecasting the timing and amounts necessary for the reconciliation, when such amounts are subject to events that cannot be reasonably predicted, as noted in our Cautionary Statement. Accordingly, we cannot address the probable significance of unavailable information.

See the Cautionary Statement Regarding Forward-Looking Information section in this Financial Review and Item 1A Risk Factors included in our 2025 Form 10-K for other factors that could cause future events to differ, perhaps materially, from those anticipated in these forward-looking statements.

CONSOLIDATED INCOME STATEMENT REVIEW

Our Consolidated Income Statement is presented in Item 1 of this Report.

Net income of $1.8 billion, or $4.13 per diluted common share, for the first quarter of 2026 decreased $261 million, or 13%, compared to $2.0 billion, or $4.88 per diluted common share, for the fourth quarter of 2025, due to increased noninterest expense, lower noninterest income and higher provision for credit losses, partially offset by higher net interest income. Net income increased $273 million, or 18%, compared to $1.5 billion, or $3.51 per diluted common share, for the same period in 2025, primarily due to higher net interest and noninterest income, partially offset by increased noninterest expense.

Table 3: Summarized Average Balances and Net Interest Income (a)

(a)Interest income is calculated as taxable-equivalent interest income. To provide more meaningful comparisons of interest income and yields for all interest-earning assets, as well as net interest margins, 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 interest income earned on taxable investments. This adjustment is not permitted under GAAP on the Consolidated Income Statement. For more information, see Table 36 Reconciliation of Taxable-Equivalent Net Interest Income (non-GAAP).

The PNC Financial Services Group, Inc. – Form 10-Q 5

(b)Interest income from Interest-earning deposits with banks primarily includes interest earned on our balances held with the FRB and is reported as Other interest income on our Consolidated Income Statement.

Changes in net interest income and margin result from the interaction of the volume and composition of interest-earning assets and related yields, interest-bearing liabilities and related rates paid and noninterest-bearing sources of funding. See Table 35 Average Consolidated Balance Sheet and Net Interest Analysis for additional information.

Net interest income increased $230 million, or 6%, for the first quarter of 2026 compared to the fourth quarter of 2025, reflecting the benefit of FirstBank, lower funding costs and commercial loan growth. Net interest income increased $485 million, or 14%, for the first three months of 2026 compared to the same period in 2025 and reflected the benefit of FirstBank, loan growth and lower funding costs. Net interest margin increased 11 basis points compared to the fourth quarter of 2025, reflecting an 18 basis point decline in the rate paid on interest-bearing deposits. Compared to the first three months of 2025, net interest margin increased 17 basis points and included the continued benefit of fixed rate asset repricing.

Average investment securities increased $2.3 billion, or 2%, compared to both the fourth and first quarters of 2025. In both comparisons, the increase primarily reflected higher residential mortgage-backed securities, partially offset by a decline in U.S. Treasury securities. Average investment securities represented 27% of average interest-earning assets for both the first quarter of 2026 and the fourth quarter of 2025, compared to 28% for the first three months of 2025.

Average loans increased $23.0 billion, or 7%, compared to the fourth quarter of 2025, and $34.3 billion, or 11%, compared to the first three months of 2025. In both comparisons, the increase is primarily due to growth in commercial and industrial loans, driven by strong new production and increased utilization, as well as the addition of FirstBank loans. Average loans represented 65% of average interest-earning assets for the first quarter of 2026, compared to 63% for both the fourth and first quarters of 2025.

Average interest-earning deposits with banks increased $0.6 billion, or 2%, compared to the fourth quarter of 2025 and decreased $2.0 billion, or 6%, compared to the first quarter of 2025. The decrease compared to the first three months of 2025 reflected higher loans and securities balances and lower borrowed funds, partially offset by increased deposits.

Average interest-bearing deposits increased $14.6 billion, or 4%, compared to the fourth quarter of 2025, and $31.0 billion, or 9%, compared to the first quarter of 2025. Both comparisons reflected the addition of FirstBank deposits, partially offset by lower brokered time deposits. In total, average interest-bearing deposits represented 85% of average interest-bearing liabilities for both the first quarter of 2026 and the fourth quarter of 2025, compared to 84% for the first three months of 2025.

Average borrowed funds increased $2.6 billion, or 4%, compared to the fourth quarter of 2025, and reflected an increase in FHLB advances. Average borrowed funds decreased $1.6 billion, or 3%, compared to the first three months of 2025, primarily due to lower FHLB advances, partially offset by higher senior debt outstanding.

Further details regarding average loans and deposits are included in the Business Segments Review section of this Financial Review.

Noninterest Income

Table 4: Noninterest Income

Noninterest income as a percentage of total revenue was 36% for the first quarter of 2026 compared to 39% for the fourth quarter of 2025 and 36% for the first three months of 2025.

Asset management and brokerage fees increased compared to the fourth and first quarters of 2025. In both comparisons, the increase was a result of higher average equity markets and increased client activity. PNC’s discretionary client assets under management of $230 billion at March 31, 2026 decreased $4.0 billion compared to $234 billion at December 31, 2025, driven by decreases in spot

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

equity markets. PNC’s discretionary client assets under management at March 31, 2026 increased $20.0 billion from $210 billion at March 31, 2025 and included the impact from higher spot equity markets and positive net flows.

Capital markets and advisory fees decreased compared to the fourth quarter of 2025 as both higher underwriting and trading revenue were more than offset by lower merger and acquisition advisory fees. The increase compared to the first quarter of 2025 was primarily due to higher merger and acquisition advisory activity and increased trading revenue.

Card and cash management revenue increased compared to the fourth and first quarters of 2025 and included higher treasury management product revenue.

Lending and deposit services decreased compared to the fourth quarter of 2025 and included seasonally lower customer activity and the addition of FirstBank. Compared to the first three months of 2025, the increase reflected the addition of FirstBank customer activity.

Residential and commercial mortgage decreased compared to the fourth quarter of 2025 due to a $31 million decline in mortgage servicing rights valuation, net of economic hedge, driven by rate volatility. The decrease compared to the first three months of 2025 was primarily due to lower commercial mortgage revenue.

Other noninterest income decreased compared to both the fourth and first quarters of 2025. The decrease in both comparisons reflected lower private equity revenue, partially offset by net securities gains and lower negative Visa derivative adjustments. Visa derivative adjustments for the first quarter of 2026 were negative $32 million compared to negative $41 million in the fourth quarter of 2025 and negative $40 million for the first quarter of 2025.

Noninterest Expense

Table 5: Noninterest Expense

Noninterest expense increased compared to the fourth and first quarters of 2025. In both comparisons, the increase included FirstBank operating and integration expenses. In comparison to the fourth quarter of 2025, the increase was partially offset by seasonally lower marketing spend. Compared to the first quarter of 2025, the increase was also driven by higher personnel costs as a result of increased business activity and higher equipment expenses reflecting continued investments in technology.

Effective Income Tax Rate

The effective income tax rate was 19.0% for the first quarter of 2026 compared to 12.7% for the fourth quarter of 2025 and 18.8% for the first three months of 2025. The fourth quarter of 2025 included the favorable resolution of several tax matters.

Provision For Credit Losses

Table 6: Provision for Credit Losses

The PNC Financial Services Group, Inc. – Form 10-Q 7

Provision for credit losses of $210 million in the first quarter of 2026 reflected portfolio activity, including loan growth and the addition of FirstBank, as well as updates to macroeconomic factors.

CONSOLIDATED BALANCE SHEET REVIEW

The summarized balance sheet data in Table 7 is based upon our Consolidated Balance Sheet in Item 1 of this Report.

Table 7: Summarized Balance Sheet Data

Our balance sheet was well positioned at March 31, 2026. In comparison to December 31, 2025:

• Total assets increased primarily due to higher loans and higher securities balances, including the impact of the FirstBank acquisition, partially offset by lower balances held with the FRB.
• Total liabilities increased reflecting higher deposits driven by the acquisition of FirstBank and higher borrowed funds.
• Total equity increased primarily due to stock issuances related to the FirstBank acquisition and net income, partially offset by dividends paid, common share repurchases and lower AOCI.

The following discussion provides additional information about the major components of our balance sheet. Information regarding our ACL related to loans is included in the Credit Risk Management section and Critical Accounting Estimates and Judgments section of this Financial Review and in Note 4 Loans and Related Allowance for Credit Losses. Additional discussion of our ACL is included in Note 1 Accounting Polices of our 2025 Form 10-K. For additional information on the ACL for PSLs, see Note 1 Accounting Policies. Information regarding our capital and regulatory compliance is included in the Liquidity and Capital Management portion of the Risk Management section and the Recent Regulatory Developments section in this Financial Review. Additional information can be found in the Supervision and Regulation section and Note 19 Regulatory Matters of our 2025 Form 10-K.

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

Loans

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

Table 8: Loans

Commercial loans increased due to growth in the commercial and industrial portfolio, reflecting new production and higher utilization of loan commitments as well as the addition of FirstBank loans.

Consumer loans increased driven by the benefit of acquired FirstBank residential mortgage loans.

For additional information regarding our loan portfolio see the Credit Risk Management portion of the Risk Management section in this Financial Review and Note 4 Loans and Related Allowance for Credit Losses.

Investment Securities

Investment securities of $143.1 billion at March 31, 2026 increased $4.9 billion, or 4%, compared to December 31, 2025, primarily due to the acquisition of FirstBank investment securities and net purchase activity in both the available-for-sale and held-to-maturity portfolios.

The level and composition of the investment securities portfolio fluctuates over time based on many factors, including market conditions, loan and deposit growth and balance sheet management activities. We manage our investment securities portfolio to optimize returns, while providing a reliable source of liquidity for our banking and other activities, considering the LCR, NSFR and other internal and external guidelines and constraints.

Table 9: Investment Securities (a)

(a)Of our total securities portfolio, 97% were rated AAA/AA at both March 31, 2026 and December 31, 2025.

(b)Amortized cost is presented net of the allowance for investment securities, which totaled $66 million at both March 31, 2026 and December 31, 2025, primarily related to non-agency commercial mortgage-backed securities.

(c)Collateralized primarily by multifamily housing, office buildings, retail properties, lodging properties and industrial properties.

(d)Collateralized primarily by consumer credit products, corporate debt and government guaranteed education loans.

(e)Includes state and municipal securities and corporate bonds.

The PNC Financial Services Group, Inc. – Form 10-Q 9

(f)Includes available-for-sale and held-to-maturity securities, which are recorded on our balance sheet at fair value and amortized cost, respectively.

Table 9 presents our investment securities portfolio by amortized cost and fair value. The difference between fair value and amortized cost at March 31, 2026 primarily reflected the impact of interest rate changes on the valuation of fixed-rate securities. We continually monitor the credit risk in our portfolio and maintain the allowance for investment securities at an appropriate level to absorb expected credit losses on our investment securities portfolio for the remaining contractual term of the securities adjusted for expected prepayments. See Note 3 Investment Securities for additional details regarding the allowance for investment securities.

The duration of investment securities was 3.6 years and 3.5 years at March 31, 2026 and December 31, 2025, respectively. We estimate that at March 31, 2026 the effective duration of investment securities was 3.6 years for an immediate 50 basis points parallel increase in interest rates and 3.5 years for an immediate 50 basis points parallel decrease in interest rates. Comparable amounts at December 31, 2025 for the effective duration of investment securities were 3.5 years and 3.4 years, respectively.

Based on expected prepayment speeds, the weighted-average expected maturity of the investment securities portfolio was 5.2 years at both March 31, 2026 and December 31, 2025.

Table 10: Weighted-Average Expected Maturities of Mortgage and Asset-Backed Debt Securities

Additional information regarding our investment securities portfolio is included in Note 3 Investment Securities and Note 12 Fair Value.

Funding Sources

Table 11: Details of Funding Sources

Deposits are considered an attractive source of funding due to their stability and relatively low cost to fund. Compared to December 31, 2025, our funding source composition included higher deposit balances and borrowed funds outstanding. Funding costs decreased compared to the fourth quarter of 2025 as growth in funding sources was more than offset by the impact of lower funding rates.

Total deposits increased compared to December 31, 2025 driven by higher interest-bearing and noninterest-bearing deposits, primarily due to the addition of FirstBank deposits. The increase in interest-bearing deposits was partially offset by a decline in brokered time deposits. Our total brokered deposit balance was $1.9 billion at March 31, 2026 compared to $5.1 billion at December 31, 2025, and was significantly below both our internal and regulatory guidelines and limits.

Borrowed funds increased primarily due to higher FHLB advances.

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

The level and composition of borrowed funds fluctuates over time based on many factors, including market conditions, capital considerations, and funding needs, which are primarily driven by changes in loan, deposit and investment securities balances. While our largest source of liquidity on a consolidated basis is the customer deposit base generated by our banking businesses, we also manage our borrowed funds to provide a reliable source of liquidity for our banking and other activities, considering our LCR and NSFR requirements and other internal and external guidelines and constraints. See the Liquidity and Capital Management portion of the Risk Management section and the Recent Regulatory Developments section in this Financial Review and the Supervision and Regulation section and Note 19 Regulatory Matters of our 2025 Form 10-K for additional information regarding our liquidity and capital activities. See Note 8 Borrowed Funds in this Report and Note 9 Borrowed Funds in our 2025 Form 10-K for additional information related to our borrowings. See the Average Consolidated Balance Sheet and Net Interest Analysis section of this Financial Review for additional information on volume and related funding cost changes.

Shareholders’ Equity

Total shareholders’ equity of $63.6 billion at March 31, 2026 increased $3.0 billion, or 5%, compared to December 31, 2025, due to stock issuances related to the FirstBank acquisition of $3.0 billion and net income of $1.8 billion, partially offset by dividends paid of $0.8 billion, common share repurchases of $0.7 billion and a decline in AOCI of $0.4 billion.

BUSINESS SEGMENTS REVIEW

We have three reportable business segments: Retail Banking, Corporate & Institutional Banking and the Asset Management Group. Our reportable business segments are defined by the nature of products and services, types of customers, methods used to distribute products or provide services and similar financial performance.

Total business segment financial results differ from our consolidated reporting due to the remaining corporate operations, or other activities, that do not meet the criteria for disclosure as a separate reportable business. These other activities include residual activities such as asset and liability management activities including net securities gains or losses, ACL for investment securities, certain trading activities, certain runoff consumer loan portfolios, private equity investments, intercompany eliminations, corporate overhead net of allocations, tax adjustments that are not allocated to business segments, exited businesses and the residual impact from FTP operations. See Table 86 in Note 15 Segment Reporting for additional information.

Certain amounts included in this Business Segments Review differ from those amounts shown in Note 15, primarily due to the presentation in this Financial Review of business net interest income on a taxable-equivalent basis.

See Note 15 Segment Reporting for additional information on our business segments, including a description of each business.

The PNC Financial Services Group, Inc. – Form 10-Q 11

Retail Banking

Retail Banking’s core strategy is to build lifelong, primary relationships by creating a sense of financial well-being and ease for our clients. Over time, we seek to deepen those relationships by meeting the broad range of our clients’ financial needs across savings, liquidity, lending, payments, investment and retirement solutions. We work to deliver these solutions in the most seamless and efficient way possible, meeting our customers where they are—whether in a branch, through digital channels, at an ATM or through our phone-based customer contact centers—while continuously optimizing the cost to sell and service. We believe that, over time, we can grow our customer base, enhance the breadth and depth of our client relationships and improve our efficiency through differentiated products and leading digital channels.

Table 12: Retail Banking Table

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

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*- Not Meaningful

(a)During the second quarter of 2025, certain loans and deposits, and the associated income statement impact, were transferred from the Asset Management Group to Retail Banking to better align products and services with the appropriate business segment. Prior periods have been adjusted to conform with the current presentation.

(b)During the second quarter of 2025, brokered time deposits, and the associated income statement impact, were reclassified from Retail Banking to other activities, reflecting their use for asset and liability management. Prior periods have been adjusted to conform with the current presentation.

(c)As a result of an organizational realignment, certain expenses were reclassified as corporate operations and were moved from Retail Banking to other activities during the second quarter of 2025. Prior periods have been adjusted to conform with the current presentation.

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

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

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

(g)As of March 31.

(h)Servicing fees net of impact of decrease in MSR value due to passage of time, which includes the impact from regularly scheduled loan principal payments, prepayments and loans paid off during the period.

(i)Reflects all branches excluding standalone mortgage offices and satellite offices (e.g., drive-ups, electronic branches and retirement centers) that provide limited products and/or services.

(j)Includes cash and money market balances.

Retail Banking earnings for the first three months of 2026 increased $199 million compared to the same period in 2025 driven by higher revenue as well as a lower provision for credit losses, partially offset by higher noninterest expense.

Net interest income increased in the comparison due to the benefit of FirstBank.

Noninterest income increased in the comparison and included the addition of FirstBank customers and growth in client activity.

Provision for credit losses reflected portfolio activity, including the addition of FirstBank.

Noninterest expense increased in the comparison primarily due to FirstBank operating expenses and technology investments.

Retail Banking average total loans increased in the first three months of 2026 compared to the same period in 2025. Average consumer loans increased primarily due to residential real estate loans acquired from FirstBank. The increase in average commercial loans was attributable to acquired FirstBank loans.

Our focus on growing primary customer relationships is at the core of our deposit strategy in Retail, which is based on attracting and retaining stable, low-cost deposits as a key funding source for PNC. We have taken a disciplined approach to pricing, focused on retaining relationship-based balances and executing on targeted deposit growth and retention strategies aimed at more rate-sensitive customers. Our goal with regard to deposits is to optimize balances, economics and long-term customer growth. In the first three months of 2026, average total deposits increased compared to the same period in 2025, primarily attributable to acquired FirstBank deposits.

Retail Banking continues to enhance the customer experience with refinements to product and service offerings that drive value for consumers and small businesses. As part of our strategic focus on growing customers and meeting their financial needs, we operate and continue to optimize a coast-to-coast network of retail branches and ATMs, which are complemented by PNC’s suite of digital capabilities. In 2025, PNC announced that it would increase its total branch investment to approximately $2.0 billion by 2030, opening more than 300 new branches and reaffirmed plans to complete the renovation of the entire branch network by 2029. The additional

The PNC Financial Services Group, Inc. – Form 10-Q 13

branch investments will be focused in Nashville, Chicago, Sarasota, and Winston-Salem. This was an increase from the previously announced 2024 investment of $1.5 billion to open more than 200 new branches in the strategic growth markets of Atlanta, Austin, Charlotte, Dallas, Denver, Houston, Miami, Orlando, Phoenix, Raleigh, San Antonio, and Tampa.

Corporate & Institutional Banking

Corporate & Institutional Banking’s strategy is to be the leading relationship-based provider of traditional banking products and services to its customers through the economic cycles. We aim to grow our market share and drive higher returns by delivering value-added solutions that help our clients better run their organizations, all while maintaining prudent risk and expense management. We continue to focus on building client relationships where the risk-return profile is attractive. We are a coast-to-coast franchise and our full suite of commercial products and services is offered nationally.

Table 13: Corporate & Institutional Banking Table

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

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

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

(c)See the additional revenue discussion regarding treasury management and commercial mortgage banking activities in the Product Revenue section of this Corporate & Institutional Banking section.

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

(e)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.

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

(g)As of March 31.

(h)Represents balances related to capitalized servicing.

Corporate & Institutional Banking earnings in the first three months of 2026 increased $156 million compared to the same period in 2025 driven by higher revenue, partially offset by higher noninterest expense and a higher provision for credit losses.

Net interest income increased in the comparison primarily due to higher average loan and deposit balances as well as wider interest rate spreads on the value of deposits, partially offset by narrower interest rate spreads on the value of loans.

Noninterest income increased in the comparison primarily due to broad-based growth across the capital markets and advisory businesses and higher treasury management product revenue.

Provision for credit losses for the first three months of 2026 reflected portfolio activity, including loan growth, and updates to macroeconomic factors.

Noninterest expense increased in the comparison reflecting higher variable compensation associated with increased business activity.

Average loans increased compared to the three months ended March 31, 2025:

• Corporate Banking provides lending, equipment finance, treasury management and capital markets products and services to

mid-sized and large corporations, and government and not-for-profit entities. Average loans for this business increased reflecting new production and higher average utilization of loan commitments.

• Real Estate provides banking, financing, servicing and technology solutions for commercial real estate clients across the country. Average loans for this business declined reflecting lower average utilization of loan commitments and paydowns outpacing new production.
• Business Credit provides asset-based lending and equipment financing solutions. The loan and lease portfolio is mainly secured by business assets. Average loans for this business increased reflecting new production and a higher average utilization of loan commitments.

The PNC Financial Services Group, Inc. – Form 10-Q 15

• Commercial Banking provides lending, treasury management and capital markets products and services to smaller corporations and businesses. Average loans for this business declined driven by lower average utilization of loan commitments and paydowns outpacing new production.

The deposit strategy of Corporate & Institutional Banking is to remain disciplined on pricing and focused on growing and retaining relationship-based balances over time, executing on customer and segment-specific deposit growth strategies and continuing to provide funding and liquidity to PNC. Average total deposits increased compared to the three months ended March 31, 2025, due to growth in interest-bearing deposits. We continue to actively monitor the interest rate environment and make adjustments to our deposit strategy in response to evolving market conditions, bank funding needs and client relationship dynamics.

Product Revenue

In addition to credit and deposit products for commercial customers, Corporate & Institutional Banking offers treasury management capabilities, capital markets and advisory products and services, and commercial mortgage banking activities, for customers of all business segments. On a consolidated basis, the revenue from these other services is included in net interest income and noninterest income, as appropriate. From a business perspective, the majority of the revenue and expense related to these services is reflected in the Corporate & Institutional Banking segment results, with the remainder reflected in the results of other businesses where the customer relationships exist. The Other Information section in Table 13 includes the consolidated revenue to PNC for treasury management and commercial mortgage banking services. A discussion of the consolidated revenue from these services follows.

The Treasury Management business provides corporations with cash and investment management services, receivables and disbursement management services, funds transfer services, and access to online/mobile information management and reporting services. Treasury management revenue is reported in noninterest income and net interest income. Noninterest income includes treasury management product revenue less earnings credits provided to customers on compensating deposit balances used to pay for products and services. Net interest income includes funding credit from all treasury management customer deposit balances. Compared to the first three months of 2025, treasury management revenue increased due to growth in average deposit balances, higher product revenue and wider interest rate spreads on the value of deposits.

Commercial mortgage banking activities include revenue derived from commercial mortgage servicing (both net interest income and

noninterest income), revenue derived from commercial mortgage loans held for sale and hedges related to those activities. Total

revenue from commercial mortgage banking activities decreased in the comparison primarily due to lower revenue from commercial mortgage loans held for sale and a lower benefit from commercial mortgage servicing rights valuation, net of hedge, partially offset by higher commercial mortgage loan servicing income.

Capital markets and advisory includes services and activities primarily related to merger and acquisition advisory, equity capital markets advisory, asset-backed financing, loan syndication, securities underwriting and customer-related trading. The increase in capital markets and advisory fees in the comparison was broad-based across products and services.

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

Asset Management Group

The Asset Management Group strives to be a leading relationship-based provider of investment, planning, credit and cash management solutions and fiduciary services to affluent individuals and institutions by endeavoring to proactively deliver value-added ideas, solutions and exceptional service. The Asset Management Group’s priorities are to serve our clients’ financial objectives, grow and deepen customer relationships and deliver solid financial performance with prudent risk and expense management.

Table 14: Asset Management Group Table

*- Not Meaningful

(a)During the second quarter of 2025, certain loans and deposits, and the associated income statement impact, were transferred from the Asset Management Group to Retail Banking to better align products and services with the appropriate business segment. Prior periods have been adjusted to conform with the current presentation.

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

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

(d)As of March 31.

(e)Excludes brokerage account client assets.

The PNC Financial Services Group, Inc. – Form 10-Q 17

The Asset Management Group consists of two primary businesses: PNC Private Bank and Institutional Asset Management.

The PNC Private Bank is focused on being a premier private bank in each of the markets it serves, seeking to deliver high quality banking, trust and investment management services to our emerging affluent, high net worth and ultra-high net worth clients through a broad array of products and services.

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

Asset Management Group earnings in the first three months of 2026 increased $13 million compared to the same period in 2025, driven by higher revenue, partially offset by higher noninterest expense and a higher provision for credit losses.

Net interest income increased in the comparison primarily due to wider interest rate spreads on the value of deposits.

Noninterest income increased in the comparison reflecting higher average equity markets.

Noninterest expense increased in the comparison due to continued investments to support business growth and higher variable compensation associated with increased business activity.

Average total loans increased in the comparison and included growth in securities-based lending and higher commercial loan balances.

Average deposits were stable in the comparison.

Discretionary client assets under management increased in the comparison driven by higher spot equity markets and positive net flows.

RISK MANAGEMENT

The Risk Management section included in Item 7 of our 2025 Form 10-K describes our enterprise risk management framework, including risk culture, enterprise strategy, risk governance and oversight framework, risk identification, risk assessments, risk controls and monitoring, and risk aggregation and reporting. Additionally, our 2025 Form 10-K provides an analysis of the firm’s Capital Management and our key areas of risk, which include, but are not limited to, Credit, Market, Liquidity and Operational (including Compliance and Information Security).

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

Credit Risk Management

Credit risk, including our credit risk management processes, is described in further detail in the Credit Risk Management section of our 2025 Form 10-K. The following provides additional information around our loan portfolio, which is our most significant concentration of credit risk.

Loan Portfolio Characteristics and Analysis

Table 15: Details of Loans

In billions

We use several credit quality indicators, as further detailed in Note 4 Loans and Related Allowance for Credit Losses, to monitor and measure our exposure to credit risk within our loan portfolio. The following provides additional information about the significant loan classes that comprise our Commercial and Consumer portfolio segments.

Commercial

Commercial and Industrial

Commercial and industrial loans comprised 61% and 59% of our total loan portfolio at March 31, 2026 and December 31, 2025, respectively. The majority of our commercial and industrial loans are secured by collateral that provides a secondary source of repayment should a borrower experience cash generation difficulties. Examples of this collateral include short-term assets, such as accounts receivable, inventory and securities, and long-lived assets, such as equipment, owner-occupied real estate and other business assets.

We actively manage our commercial and industrial loans to assess any changes (both positive and negative) in the level of credit risk at both the borrower and portfolio level. To evaluate the level of credit risk, we assign internal risk ratings reflecting our estimates of the borrower’s PD and LGD for each related credit facility. This two-dimensional credit risk rating methodology provides granularity in the risk monitoring process and is updated on an ongoing basis through our credit risk management processes. In addition to monitoring the level of credit risk, we monitor different sources of concentration risk, including industry concentrations that may exist in our portfolio. Our commercial and industrial portfolio is well-diversified across industries as shown in the following table (based on the North American Industry Classification System).

The PNC Financial Services Group, Inc. – Form 10-Q 19

Table 16: Commercial and Industrial Loans by Industry

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

Owner-occupied commercial real estate loans totaled $10.3 billion and $9.0 billion at March 31, 2026 and December 31, 2025, respectively. These loans are categorized as commercial and industrial loans as the credit decisioning for servicing these loans is based on the financial conditions of the owner, not the ability of the collateral to generate income. Owner-occupied commercial real estate loans are well-diversified across industries.

Commercial Real Estate

Commercial real estate loans of $34.8 billion as of March 31, 2026 comprised $21.9 billion related to commercial mortgages on income-producing properties, $8.3 billion of intermediate-term financing loans and $4.6 billion of real estate construction project loans. At December 31, 2025, comparable amounts were $29.6 billion, $17.4 billion, $8.2 billion and $4.0 billion, respectively. Commercial real estate primarily consists of an investment in land and/or buildings held to generate income, which serves as the primary source for the repayment of the loan. However, the disposition of the assigned collateral serves as a secondary source of repayment for the loan should the borrower experience cash generation difficulties.

We monitor credit risk associated with our commercial real estate loans similar to commercial and industrial loans by analyzing PD and LGD. Additionally, risks associated with commercial real estate loans tend to be correlated to the loan structure, collateral location and quality, project progress and business environment. These attributes are also monitored and utilized in assessing credit risk. The portfolio is geographically diverse due to the nature of our business involving clients throughout the U.S.

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

The following table presents our commercial real estate loans by geography and property type:

Table 17: Commercial Real Estate Loans by Geography and Property Type

(a) Presented in descending order based on loan balances at March 31, 2026.

Commercial Real Estate: Office Portfolio

Real estate performance related to the office sector continues to be an area of focus. At March 31, 2026, our outstanding loan balances in the office portfolio totaled $5.5 billion, or 1.5% of total loans, while additional unfunded loan commitments totaled $0.4 billion. Within this population, criticized loans totaled 30.1% and nonperforming loans totaled 8.8%. We have established reserves of 8.9% against office loans, which we believe reflect the expected credit losses in this portfolio. Our office portfolio remains geographically diversified.

Consumer

Residential Real Estate

Residential real estate loans primarily consist of residential mortgage loans.

We obtain loan attributes at origination, including FICO scores and LTVs, and we update these and other credit metrics at least quarterly. We track borrower performance monthly. We also segment the mortgage portfolio into pools based on product type (e.g., nonconforming or conforming). This information is used for internal reporting and risk management. As part of our overall risk analysis and monitoring, we also segment the portfolio based upon loan delinquency, nonperforming status, modification and bankruptcy status, FICO scores, LTV and geographic concentrations.

The PNC Financial Services Group, Inc. – Form 10-Q 21

The following table presents certain key statistics related to our residential real estate portfolio:

Table 18: Residential Real Estate Loan Statistics

(a)Presented in descending order based on loan balances at March 31, 2026.

(b)Weighted-averages calculated for the twelve months ended March 31, 2026 and December 31, 2025, respectively.

We originate residential mortgage loans nationwide through our national mortgage business as well as within our branch network. Residential mortgage loans underwritten to agency standards, including conforming loan amount limits, are typically sold with servicing retained by us. We also originate nonconforming residential mortgage loans that do not meet agency standards, which we retain on our balance sheet. Our portfolio of originated nonconforming residential mortgage loans totaled $45.3 billion at March 31, 2026, with 39% located in California. Comparable amounts at December 31, 2025 were $39.5 billion and 46%, respectively.

Home Equity

Home equity loans of $26.2 billion as of March 31, 2026 were comprised of $22.4 billion of home equity lines of credit and $3.8 billion of closed-end home equity installment loans. At December 31, 2025, comparable amounts were $25.9 billion, $22.1 billion and $3.8 billion, respectively. Home equity lines of credit are a variable interest rate product with fixed rate conversion options available to certain borrowers.

Similar to residential real estate loans, we obtain loan attributes at origination, including FICO scores and LTVs, and we update these and other credit metrics at least quarterly. Borrower performance of this portfolio is tracked on a monthly basis. We also segment the population into pools based on product type (e.g., first lien product and second lien product) and track the historical performance of any related mortgage loans regardless of whether we hold such liens. This information is used for internal reporting and risk management. As part of our overall risk analysis and monitoring, we also segment the portfolio based upon loan delinquency, nonperforming status, modification and bankruptcy status, FICO scores, LTV, lien position and geographic concentration.

The credit performance of the majority of the home equity portfolio where we hold the first lien position is superior to the portion of the portfolio where we hold the second lien position but do not hold the first lien. Lien position information is generally determined at the time of origination and monitored on an ongoing basis for risk management purposes. We use a third-party service provider to obtain updated loan information, including lien and collateral data that is aggregated from public and private sources.

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

The following table presents certain key statistics related to our home equity portfolio:

Table 19: Home Equity Loan Statistics

(a)Presented in descending order based on loan balances at March 31, 2026.

(b)Weighted-averages calculated for the twelve months ended March 31, 2026 and December 31, 2025, respectively.

Automobile

At March 31, 2026, total auto loans of $16.3 billion were comprised of $15.4 billion in the indirect auto portfolio and $0.9 billion in the direct auto portfolio. At December 31, 2025, comparable amounts were $16.6 billion, $15.6 billion and $1.0 billion, respectively. The indirect auto portfolio consists of loans originated primarily through independent franchised dealers. This business is strategically aligned with our core retail banking business. For the total auto loan portfolio, weighted-average loan origination FICO score, calculated using the auto enhanced FICO scale, was 800 and the weighted-average term of loan originations was 72 months for the twelve months ended March 31, 2026. Comparable amounts for the twelve months ended December 31, 2025 were 799 and 71 months, respectively.

We offer both new and used auto financing to customers through our various channels. The portfolio balance was composed of 43% new vehicle loans and 57% used vehicle loans at both March 31, 2026 and December 31, 2025.

The auto loan portfolio’s performance is measured monthly, including both updated collateral values and FICO scores that are obtained at least quarterly. For internal reporting and risk management, we analyze the portfolio by product channel and product type and regularly evaluate default and delinquency experience. As part of our overall risk analysis and monitoring, we segment the portfolio by geography, channel, collateral attributes and credit metrics which include FICO score, LTV and term.

Nonperforming Assets and Loan Delinquencies

Nonperforming Assets

Nonperforming assets include nonperforming loans and leases, OREO, foreclosed and other assets. Nonperforming loans are those loans accounted for at amortized cost whose credit quality has deteriorated to the extent full collection of contractual principal and interest is not probable. Loans held for sale, certain government insured or guaranteed loans and loans accounted for under the fair value option are excluded from nonperforming loans. See Note 1 Accounting Policies in our 2025 Form 10-K for details on our nonaccrual policies.

The PNC Financial Services Group, Inc. – Form 10-Q 23

The following table presents a summary of nonperforming assets by major category:

Table 20: Nonperforming Assets by Type

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

(b)Calculated excluding allowances for investment securities and other financial assets.

The following table provides details on the change in nonperforming assets for the three months ended March 31, 2026 and 2025:

Table 21: Change in Nonperforming Assets

As of March 31, 2026, approximately 96% of total nonperforming loans were secured by collateral.

Loan Delinquencies

We regularly monitor the level of loan delinquencies and believe these levels are a key indicator of credit quality in our loan portfolio. Measurement of delinquency status is based on the contractual terms of each loan. Loans that are 30 days or more past due are considered delinquent. Loan delinquencies include government insured or guaranteed loans, and loans accounted for under the fair value option. Amounts exclude loans held for sale.

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

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

The following table presents a summary of accruing loans past due by delinquency status:

Table 22: Accruing Loans Past Due (a)

(a)Past due loan amounts include government insured or guaranteed loans of $0.3 billion at both March 31, 2026 and December 31, 2025.

(b)Amounts as of March 31, 2026 include $163 million of total delinquencies attributable to FirstBank.

Accruing loans past due 90 days or more continue to accrue interest because they are (i) well secured by collateral and are in the process of collection, (ii) managed in homogeneous portfolios with specified charge-off timeframes adhering to regulatory guidelines, or (iii) certain government insured or guaranteed loans. As such, they are excluded from nonperforming loans.

Loan Modifications

We may provide relief to our customers experiencing financial hardships through a variety of solutions. Commercial loan and lease modifications are based on each individual borrower’s situation, while consumer loan modifications are evaluated under our hardship relief programs. For additional information on our commercial real estate, office-related modification offerings, see the Commercial Real Estate portion of the Credit Risk Management section of this Financial Review.

See Note 4 Loans and Related Allowance for Credit Losses for additional information on loan modifications to borrowers experiencing financial difficulty.

Allowance for Credit Losses

Our determination of the ACL is based on historical loss and performance experience, current economic conditions, the reasonable and supportable forecasts of future economic conditions and other relevant factors, including current borrower and/or transaction characteristics and assessments of the remaining estimated contractual term as of the balance sheet date. We maintain the ACL at an appropriate level for expected losses on our existing investment securities, loans, equipment finance leases, other financial assets and unfunded lending related commitments.

See Note 1 Accounting Policies and the Credit Risk Management section in our 2025 Form 10-K for additional discussion of our ACL, including details of our methodologies. See also the Critical Accounting Estimates and Judgments section of this Report for further discussion of the assumptions used in the determination of the ACL as of March 31, 2026.

The PNC Financial Services Group, Inc. – Form 10-Q 25

The following table summarizes our ACL related to loans.

Table 23: Allowance for Credit Losses by Loan Class (a)

(a) Excludes allowances for investment securities and other financial assets, which together totaled $103 million and $99 million at March 31, 2026 and December 31, 2025, respectively.

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

The following table summarizes our loan charge-offs and recoveries.

Table 24: Loan Charge-Offs and Recoveries

(a)Represents the charge-off of certain loans previously charged off by FirstBank, which were written up upon acquisition to unpaid principal balance as required by purchase accounting.

Total net charge-offs increased $48 million, or 23%, for the first three months of 2026 compared to the same period in 2025. The increase in the comparison was primarily attributable to net charge-offs from the FirstBank acquisition related to purchase accounting.

See Note 1 Accounting Policies in our 2025 Form 10-K and Note 4 Loans and Related Allowance for Credit Losses of this Report for additional information.

Liquidity and Capital Management

Our liquidity risk framework and related monitoring measures and tools, including internal liquidity stress testing as well as compliance with internal and regulatory limits and guidelines, are described in further detail in the Liquidity and Capital Management section of our 2025 Form 10-K.

One of the ways we monitor our liquidity is by reference to the LCR, a regulatory minimum liquidity requirement designed to ensure that covered banking organizations maintain an adequate level of liquidity to meet net liquidity needs over the course of a hypothetical 30-day stress scenario. PNC and PNC Bank calculate the LCR daily and are required to maintain a regulatory minimum of 100%. The LCR for PNC and PNC Bank exceeded the regulatory minimum requirement throughout the first quarter of 2026. Fluctuations in our LCR result from changes to the components of the calculation, including high-quality liquid assets and net cash outflows, as a result of ongoing business activity.

The NSFR is designed to measure the stability of the maturity structure of assets and liabilities of banking organizations over a one-year time horizon. PNC and PNC Bank calculate the NSFR daily and are required to maintain a regulatory minimum of 100%. The NSFR for PNC and PNC Bank exceeded the regulatory minimum requirement throughout the first quarter of 2026.

The PNC Financial Services Group, Inc. – Form 10-Q 27

We provide additional information regarding regulatory liquidity requirements and their potential impact on us in the Supervision and Regulation section of Item 1 Business and Item 1A Risk Factors of our 2025 Form 10-K.

Sources of Liquidity

Our largest source of liquidity on a consolidated basis is the customer deposit base generated by our banking businesses. These deposits provide relatively stable and low-cost funding. Total deposits increased to $457.6 billion at March 31, 2026 from $440.9 billion at December 31, 2025 driven by higher interest-bearing and noninterest-bearing deposits, primarily due to the addition of FirstBank deposits. The increase in interest-bearing deposits was partially offset by lower brokered time deposits. As of March 31, 2026, uninsured deposits represented approximately 44% of our total deposit base, which is estimated based on the regulatory instructions in the Consolidated Reports of Condition and Income - FFIEC 031. The majority of our uninsured deposits are related to commercial operating and relationship accounts, which we define as commercial deposit customers who utilize two or more PNC products. See the Funding Sources section in the Consolidated Balance Sheet Review and the Business Segments Review of this Financial Review for additional information on our deposits and related strategies.

We may also obtain liquidity through various forms of funding, such as senior debt, subordinated debt, FHLB advances, securities sold under repurchase agreements, commercial paper and other short-term borrowings. See the Funding Sources section in the Consolidated Balance Sheet Review of this Financial Review and Note 8 Borrowed Funds included in this Report for additional information related to our borrowings.

Total senior and subordinated debt, on a consolidated basis, increased due to the following activity:

Table 25: Senior and Subordinated Debt

Additionally, PNC maintains access to contingent funding sources that include unused borrowing capacity and certain liquid assets. PNC has a contingency funding plan designed to ensure that liquidity sources are sufficient to meet ongoing obligations and commitments, particularly in the event of liquidity stress. This plan is designed to examine and quantify the organization’s liquidity under various internal liquidity stress scenarios and is periodically tested to assess the plan’s reliability. Additionally, the plan provides the strategies for addressing liquidity needs and responsive actions we would consider during liquidity stress events, which could include the issuance of incremental debt, preferred stock, or additional deposit actions, including the issuance of brokered time deposits. The plan also addresses the governance, frequency of reporting and the responsibilities of key departments in the event of liquidity stress.

PNC defines our primary contingent liquidity sources as cash held at the FRB, investment securities and unused borrowing capacity at the FHLB and FRB. The following table summarizes our primary contingent liquidity sources at March 31, 2026 and December 31, 2025.

Table 26: Primary Contingent Liquidity Sources

(a)Represents the fair value of investment securities that can be used for pledging or to secure other sources of funding.

(b)At March 31, 2026, total FHLB borrowing capacity was $70.2 billion and total FHLB advances and letters of credit were $21.8 billion. Comparable amounts at December 31, 2025 were $64.1 billion and $13.4 billion, respectively.

(c)Total borrowing capacity with the FRB was $84.3 billion at March 31, 2026 and $81.5 billion at December 31, 2025. PNC had no outstanding borrowings with the FRB at March 31, 2026 and December 31, 2025.

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

Bank Liquidity

In addition to our primary contingent liquidity sources, under PNC Bank’s 2014 bank note program, as amended, PNC Bank may from time to time offer up to $40.0 billion aggregate principal amount outstanding at any one time of its unsecured senior and subordinated notes with maturity dates more than nine months (in the case of senior notes) and five years or more (in the case of subordinated notes) from their date of issue. At March 31, 2026, PNC Bank’s remaining capacity to issue under the program was $33.7 billion.

The following table details PNC Bank note redemptions during the first quarter of 2026.

Table 27: PNC Bank Notes Redeemed

Redemption Date Amount Description of Redemption

January 15, 2026 $500 million All outstanding senior floating rate notes with an original scheduled maturity date of January 15, 2027. The redemption price was equal to 100% of the principal amount, plus any accrued and unpaid interest to the redemption date of January 15, 2026.

January 15, 2026 $1.25 billion All outstanding 4.775% senior fixed-to-floating rate notes with an original scheduled maturity date of January 15, 2027. The redemption price was equal to 100% of the principal amount, plus any accrued and unpaid interest to the redemption date of January 15, 2026.

See Note 17 Subsequent Events for details on the announcement of the May 13, 2026 redemption of all outstanding 4.543% senior fixed-to-floating rate notes with an original maturity date of May 13, 2027.

Under PNC Bank’s 2013 commercial paper program, PNC Bank has the ability to offer up to $10.0 billion of its commercial paper to provide additional liquidity. At March 31, 2026, there were no issuances outstanding under this program.

Additionally, PNC Bank may also access funding from the parent company through deposits placed at the bank or issuing intercompany unsecured notes.

Parent Company Liquidity

In addition to managing liquidity risk at the bank level, we manage the parent company’s liquidity. The parent company’s contractual obligations consist primarily of debt service related to parent company borrowings and funding non-bank affiliates. Additionally, the parent company maintains liquidity to fund discretionary activities such as paying dividends to our shareholders, share repurchases and acquisitions.

At March 31, 2026, available parent company liquidity totaled $28.9 billion. Parent company liquidity is held in intercompany cash and investments. For investments with longer durations, the related maturities are aligned with scheduled cash needs, such as the maturity of parent company debt obligations.

The principal source of parent company liquidity is the dividends or other capital distributions it receives from PNC Bank, which may be impacted by the following:

• Bank-level capital needs,
• Laws, regulations and the results of supervisory activities,
• Corporate policies,
• Contractual restrictions, and
• Other factors.

There are statutory and regulatory limitations on the ability of a national bank to pay dividends or make other capital distributions or to extend credit to the parent company or its non-bank subsidiaries. The amount available for dividend payments by PNC Bank to the parent company without prior regulatory approval was $5.4 billion at March 31, 2026. See Note 19 Regulatory Matters in our 2025 Form 10-K for further discussion of these limitations.

In addition to dividends from PNC Bank, other sources of parent company liquidity include cash and investments, as well as dividends and loan repayments from other subsidiaries and dividends or distributions from equity investments. We can also generate liquidity for the parent company and PNC’s non-bank subsidiaries through the issuance of debt and equity securities, including certain capital instruments, in public or private markets and commercial paper, and through other borrowings. Under the parent company’s 2014 commercial paper program, the parent company has the ability to offer up to $5.0 billion of commercial paper to provide additional liquidity. At March 31, 2026, there were no issuances outstanding under this program.

The PNC Financial Services Group, Inc. – Form 10-Q 29

The following table details Parent Company note issuances during the first quarter of 2026.

Table 28: Parent Company Notes Issued

Additionally, the parent company borrowed $1.1 billion through an unsecured senior term loan during the first quarter of 2026.

The following table details Parent Company note redemptions during the first quarter of 2026.

Table 29: Parent Company Notes Redeemed

Redemption Date Amount Description of Redemption

January 26, 2026 $1.25 billion All outstanding 4.758% senior fixed-to-floating rate notes with an original scheduled maturity date of January 26, 2027. The redemption price was equal to 100% of the principal amount, plus any accrued and unpaid interest to the redemption date of January 26, 2026.

Parent company senior and subordinated debt carrying value totaled $36.3 billion and $33.7 billion at March 31, 2026 and December 31, 2025, respectively.

Contractual Obligations and Commitments

We enter into various contractual arrangements in the normal course of business, certain of which require future payments that could impact our liquidity and capital resources. See the Liquidity and Capital Management portion of the Risk Management section of our 2025 Form 10-K for more information on these future cash outflows. Additionally, in the normal course of business, we have various commitments outstanding, certain of which are not included on our Consolidated Balance Sheet. We provide information on our commitments in Note 9 Commitments.

Credit Ratings

PNC’s credit ratings affect the cost and availability of short and long-term funding, collateral requirements for certain derivative instruments and the ability to offer certain products.

In general, rating agencies base their ratings on many quantitative and qualitative factors, including capital adequacy, liquidity, asset quality, business mix, level and quality of earnings, and the current legislative and regulatory environment, including implied government support. A decrease, or potential decrease, in credit ratings could impact access to the capital markets and/or increase the cost of debt, and thereby adversely affect liquidity and financial condition. For additional information on the potential impacts from a downgrade to our credit ratings, see Item 1A Risk Factors in our 2025 Form 10-K.

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

The following table presents credit ratings and outlook for The PNC Financial Services Group, Inc. and PNC Bank as of March 31, 2026:

Table 30: Credit Ratings and Outlook

March 31, 2026

Moody’s S&P (a) Fitch DBRS (b)

The PNC Financial Services Group, Inc.

Senior debt A3 A- A AA (low)

Subordinated debt A3 BBB+ A- A (high)

Preferred stock Baa2 BBB- BBB A (low)

PNC Bank

Senior debt A2 A A+ AA

Subordinated debt A2 A- A AA (low)

Long-term deposits Aa3 no rating AA- AA

Short-term deposits P-1 no rating F1+ no rating

Short-term notes P-1 A-1 F1 R-1 (high)

The PNC Financial Services Group, Inc.

Agency rating outlook Stable Stable Stable Stable

(a)S&P does not provide depositor ratings. PNC Bank’s long term issuer rating is A and short term issuer rating is A-1.

(b)DBRS does not provide a short-term depositor rating. PNC Bank’s short-term instrument rating is R-1 (high).

Capital Management

Detailed information on our capital management processes and activities is included in the Supervision and Regulation section of Item 1 of our 2025 Form 10-K.

We manage our funding and capital positions by making adjustments to our balance sheet size and composition, issuing or redeeming debt, issuing equity or other capital instruments, executing treasury stock transactions and capital redemptions or repurchases, and managing dividend policies and retaining earnings.

In the first quarter of 2026, PNC returned $1.4 billion of capital to shareholders, reflecting $0.7 billion of dividends on common shares and $0.7 billion of common share repurchases. The SCB framework permits capital return in amounts in excess of SCB minimum levels. Consistent with this framework, PNC had approximately 32% of the 100 million common shares still available for repurchase at March 31, 2026 under the repurchase program previously approved by our Board of Directors. Share repurchase activity in the second quarter of 2026 is expected to approximate $600 million to $700 million. PNC may adjust share repurchase activity depending on market and economic conditions, as well as other factors. PNC's SCB beginning October 1, 2025 through September 30, 2027 is the regulatory minimum of 2.5%.

On April 2, 2026, the PNC Board of Directors declared a quarterly cash dividend on common stock of $1.70 per share paid on May 5, 2026 to shareholders of record at the close of business April 14, 2026.

The PNC Financial Services Group, Inc. – Form 10-Q 31

The following table summarizes our Basel III capital balances and ratios.

Table 31: Basel III Capital

(a)As permitted, PNC and PNC Bank have elected to exclude AOCI related to both available-for-sale securities and pension and other post-retirement plans from CET1 capital.

(b)Basel III standardized approach risk-weighted assets are based on the Basel III standardized approach rules and include credit and market risk-weighted assets.

(c)The supplementary leverage ratio is calculated based on tier 1 capital divided by supplementary leverage exposure, which takes into account the quarterly average of both on balance sheet assets as well as certain off-balance sheet items, including loan commitments and potential future exposure under derivative contracts.

(d)The leverage ratio is calculated based on tier 1 capital divided by average quarterly adjusted total assets.

PNC’s regulatory risk-based capital ratios are calculated using the standardized approach for determining risk-weighted assets. Under the standardized approach for determining credit risk-weighted assets, exposures are generally assigned a pre-defined risk weight. Exposures to high volatility commercial real estate, nonaccruals, FDMs, past due exposures and equity exposures are generally subject to higher risk weights than other types of exposures.

At March 31, 2026, PNC and PNC Bank were considered “well capitalized” based on applicable U.S. regulatory capital ratio requirements. To qualify as “well capitalized,” PNC must have Basel III capital ratios of at least 6% for tier 1 risk-based capital and 10% for total risk-based capital, and PNC Bank must have Basel III capital ratios of at least 6.5% for common equity tier 1 risk-based capital, 8% for tier 1 risk-based capital, 10% for total risk-based capital and a leverage ratio of at least 5%.

Federal banking regulators have stated that they expect the largest U.S. BHCs, including PNC, to have a level of regulatory capital well in excess of the regulatory minimum and have required the largest U.S. BHCs, including PNC, to have a capital buffer sufficient to withstand losses and allow them to meet the credit needs of their customers through estimated stress scenarios. We seek to manage our capital consistent with these regulatory principles, and we believe that our March 31, 2026 capital levels were aligned with them.

We provide additional information regarding regulatory capital requirements and some of their potential impacts, including the proposed rules to adjust the Basel III framework, in the Recent Regulatory Developments section in this Financial Review and the Supervision and Regulation section of Item 1 Business, Item 1A Risk Factors and Note 19 Regulatory Matters in our 2025 Form 10-K .

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

Market Risk Management

See the Market Risk Management portion of the Risk Management section in our 2025 Form 10-K for additional discussion regarding market risk.

Market Risk Management – Interest Rate Risk

Interest rate risk results primarily from our traditional banking activities of gathering deposits and extending loans. Many factors, including economic and financial conditions, movements in interest rates and consumer preferences, affect the difference between the interest that we earn on assets, the interest that we pay on liabilities and the level of our noninterest-bearing funding sources. Due to the repricing term mismatches and embedded options inherent in certain of these products, changes in market interest rates not only affect expected near-term earnings, but also the economic values of these assets and liabilities.

Our Asset and Liability Management group centrally manages interest rate risk as prescribed in our market risk-related risk management policies, which are approved by management’s ALCO and the Risk Committee of the Board of Directors.

PNC utilizes sensitivities of NII and EVE to a set of interest rate scenarios to identify and measure its short-term and long-term structural interest rate risks.

The following table includes NII sensitivity results as of March 31, 2026 and 2025.

Table 32: Net Interest Income Sensitivity Analysis

(a)The effect on NII in the first year from a 100 basis point increase is approximately equal to the disclosed results for the 200 basis point scenario. The impact of a 100 basis point decrease is approximately one third of the disclosed results for the 200 basis point scenario.

When forecasting NII, we make certain key assumptions that can materially impact the resulting sensitivities, including the following:

Future Balance Sheet Composition: Our balance sheet composition is dynamic and based on our forecasted expectations. The projected balance sheet composition by the end of year one is generally consistent with the spot composition at March 31, 2026.

Balance Sheet Forecast: Our balance sheet forecast is based on various assumptions that include key interest rate risk aspects such as loan and deposit growth, as well as mix, and is consistent with our guidance.

Deposit Betas: Deposit pricing changes are primarily driven by changes in the Federal Funds rate. PNC’s cumulative deposit beta was 46% through March 2026. We define the cumulative deposit beta as the change in deposit rate paid on total interest-bearing deposits divided by the change in the upper level of the average stated Federal Funds rate range since August 2024, the start of the current easing rate cycle. For rate sensitivity purposes, PNC assumes the cumulative deposit beta will decrease slightly from the current level. For interest rate risk modeling, PNC uses dynamic beta models to adjust assumed repricing sensitivity depending on market rate levels as well as other factors. The dynamic beta assumptions reflect historical experience as well as future expectations, and are periodically updated to reflect the current view of future expectations. Actual deposit rates paid may differ from modeled projections due to variables such as competition for deposits and customer behavior.

Asset Prepayments: PNC includes prepayment assumptions for both loan and investment portfolios. Mortgage and home equity portfolios utilize an industry standard model to drive estimated prepayments that increase in lower rate environments. Commercial and other consumer loan portfolios assume static constant prepayment rates that are consistent across rate scenarios, as those portfolios historically do not exhibit significantly different prepayment behaviors based upon the level of market rates.

Impact of Derivatives: As part of our risk management strategy, PNC uses interest rate derivatives, some of which are forward starting, to hedge floating rate commercial loans. PNC had $79.3 billion in active and forward starting receive fix / pay float swaps used to hedge floating rate commercial loans as of March 31, 2026, with a weighted average duration of 2.3 years and an average fixed rate of 3.63%. Additionally, PNC utilizes receive fix / pay float swaps to hedge fixed rate debt, as well as pay fix / receive float swaps to hedge the investment securities portfolio. See Note 13 Financial Derivatives for additional information on how we use derivatives to hedge these financial instruments.

The PNC Financial Services Group, Inc. – Form 10-Q 33

The following table includes EVE sensitivity results as of March 31, 2026 and 2025.

Table 33: Economic Value of Equity Sensitivity Analysis

EVE measures the present value of all projected future cash flows associated with a point-in-time balance sheet and does not include projected new volume. EVE sensitivity to interest rate changes is a complementary metric to NII sensitivity analysis and represents an estimation of long-term interest rate risk. PNC calculates its EVE sensitivity by measuring the changes in the economic value of assets, liabilities and off-balance sheet instruments in response to an instantaneous +/-200 bps parallel shift in interest rates. Similar to the NII sensitivity analysis, we incorporate dynamic deposit repricing and loan prepayment assumptions. Directionally, higher deposit beta assumptions result in increasing liability sensitivity whereas lower deposit betas increase asset sensitivity. Conceptually similar, higher loan prepayment assumptions cause an increase in asset sensitivity and lower prepayments result in an increase in liability sensitivity. These behavioral modeling assumptions are largely consistent between the EVE and NII sensitivity analyses, and also share the same starting balance sheet position as of March 31, 2026. Deposit attrition is also a significant contributor to EVE sensitivity. Deposit attrition is projected based on a dynamic model developed using long-term historical deposit behavior in addition to management assumptions. PNC performs various sensitivity analyses to understand the impact of faster and slower deposit attrition, loan prepayments and deposit betas on our risk metrics, with the results reported to ALCO.

Compared to the first quarter of 2025, there have been no material changes to our NII sensitivity and EVE sensitivity assumptions, including data sources that drive assumptions setting.

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 and funding valuation adjustment related to our customer derivatives portfolio are marked-to-market daily and reported as customer-related trading 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. A diversified VaR reflects empirical

correlations across different asset classes. 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 2025 Form 10-K for more information on our models used to calculate VaR and our backtesting process.

Customer-related trading revenue was $91 million for the three months ended March 31, 2026, compared to $34 million for the same period in 2025, and is recorded in Capital markets and advisory noninterest income and Other interest income on our Consolidated Income Statement. The increase was primarily due to higher derivative customer-related trading revenue.

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.

A summary of our equity investments follows:

Table 34: Equity Investments Summary

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

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 $2.9 billion and $3.4 billion at March 31, 2026 and December 31, 2025, respectively. These unfunded commitments are included in Other liabilities on our Consolidated Balance Sheet.

Note 4 Loan Sale and Servicing Activities and Variable Interest Entities in our 2025 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 $2.7 billion and $2.8 billion at March 31, 2026 and December 31, 2025, respectively. As of March 31, 2026, $2.4 billion was invested directly in a variety of companies, and $0.3 billion was invested indirectly through various private equity funds. Changes in fair value of private equity investments are recognized in Other noninterest income.

PNC owns Visa Class B-2 common shares which were previously converted from Visa Class B-1 common shares as a result of the

Visa exchange program in 2024 and are included in our other equity investments at cost. The Visa Class B-2 common shares are transferable only under limited circumstances, either the resolution of the pending interchange litigation or through the launch of another exchange program by Visa, which will allow PNC to convert a portion of its Visa Class B-2 common shares into freely transferable Visa Class C common shares as described in Note 17 Subsequent Events. At March 31, 2026, the estimated value of our total investment in the Visa Class B-2 common shares was approximately $0.8 billion, while our cost basis was insignificant. The estimated value does not represent fair value of the Visa Class B-2 common shares given the shares’ limited transferability and the lack of observable transactions in the marketplace. See Note 14 Fair Value and Note 20 Legal Proceedings in our 2025 Form 10-K for additional information regarding our Visa agreements. See Note 17 Subsequent Events for additional details on Visa’s recently announced exchange offer for Visa Class B-2 common stock.

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 losses related to these investments were $1 million and $4 million for the three months ended March 31, 2026 and March 31, 2025, respectively.

Financial Derivatives

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.

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.

Further information on our financial derivatives is presented in Note 1 Accounting Policies, Note 14 Fair Value and Note 15 Financial Derivatives in our 2025 Form 10-K and in Note 12 Fair Value and Note 13 Financial Derivatives in 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.

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

AVERAGE CONSOLIDATED BALANCE SHEET AND NET INTEREST ANALYSIS

The following tables show PNC’s average consolidated balance sheet results and analysis of net interest income:

Table 35: Average Consolidated Balance Sheet and Net Interest Analysis (a) (b) (c)

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

(a)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. Fair value 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 and unsettled activity, which are included in noninterest-earning assets).

(b)Loan fees for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025 were $42 million, $42 million and $43 million, respectively.

(c)Interest income is calculated as taxable-equivalent interest income. See Table 36 Reconciliation of Taxable-Equivalent Net Interest Income (non-GAAP) in this Financial Review for more information.

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

NON-GAAP FINANCIAL INFORMATION

PNC reports certain financial measures that are not in accordance with GAAP. These non-GAAP financial measures are provided as supplemental information to the financial measures in this Report that are calculated and presented in accordance with GAAP. While we believe that these non-GAAP measures are useful tools for the purpose of evaluating certain financial results, they should not be considered superior to and are not intended to be considered in isolation or as a substitute for the related GAAP financial measures presented in this Report.

Table 36: Reconciliation of Taxable-Equivalent Net Interest Income (non-GAAP) (a)

(a)The interest income earned on certain interest-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.

RECENT REGULATORY DEVELOPMENTS

Basel Capital Proposals

On March 19, 2026, the federal banking agencies issued proposals to enhance and modernize Basel III capital rules and to adopt the final components of the Basel III international capital standards. The agencies first issued a so-called Basel III Endgame proposal in July of 2023, which would have significantly revised and increased the capital requirements for large banking organizations, including PNC and PNC Bank. The agencies did not finalize that proposal given negative feedback from the public. The new 2026 proposals are designed to adopt the final Basel III international standards and to streamline and enhance the risk-sensitivity of the capital rules. The first proposal would revise the capital requirements for the largest firms, Category I and II, and require them to calculate their risk-based capital ratios using an expanded risk‑based approach. Other firms, including PNC, are allowed to opt in to use this approach. Under this approach, firms would be subject to a stricter definition of regulatory capital and required to include most of the elements of AOCI in CET1 capital. Firms would not be required to deduct mortgage servicing assets from regulatory capital. Under the expanded risk-based approach, the risk-weighted assets would comprise credit risk, operational risk, and, if applicable, market risk and credit valuation adjustment requirements. The second proposal would revise the standardized approach in the current Basel III capital rules, which would apply to all firms (except for Category I and II firms), unless they opt in to use the expanded risk-based approach. Category III and IV firms would be required to include most of the elements of AOCI in CET1 capital, subject to a five-year transition period. Similar to the first proposal, firms would not be required to deduct mortgage servicing assets from regulatory capital. Under the standardized approach, the risk-weighted assets would comprise credit risk, and, if applicable, market risk and credit valuation adjustment requirements. The proposal would also revise certain definitions in the current capital rules and introduce greater granularity for certain asset classes, including retail and residential mortgage exposures. The comment period on both proposals is open until June 18, 2026.

Resolution and Recovery Planning

On April 1, 2026, as part of the agency’s ongoing effort to identify and eliminate unnecessary regulatory burden, the OCC published a final rule that rescinds its recovery planning guidelines that apply to large insured national banks, including PNC Bank. The final rule is effective May 1, 2026.

CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS

Our consolidated financial statements are prepared by applying certain accounting policies. Note 1 Accounting Policies in our 2025 Form 10-K describes the most significant accounting policies that we 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 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 and estimated recoveries. Our determination of the ACL is based on historical loss and performance experience, as well as current borrower and

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

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. The major drivers of ACL estimates 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 the probability weights assigned to these scenarios and the 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 evolves, forecasted losses could be materially affected.
• Portfolio composition: Changes to portfolio volume and mix could materially affect our estimates, as CECL reserves

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

We also incorporate qualitative factors in the ACL that reflect our best estimate of expected losses that may not be adequately represented in our quantitative methods or economic assumptions, as discussed below and in the Allowance for Credit Losses section of Note 1 Accounting Policies in our 2025 Form 10-K.

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. Through this approach, we believe the reserve levels appropriately reflect the expected credit losses in the portfolio as of the balance sheet date.

Our methodologies and key assumptions are further discussed in Note 1 Accounting Policies in our 2025 Form 10-K. See also Note 1 Accounting Policies in this Report for information on our adoption of ASU 2025-08 - Financial Instruments - Credit Losses (Topic 326): Purchased Loans, including how we determined the allowance for PSLs.

Reasonable and Supportable Economic Forecast

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 that includes a 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. 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 forecast the distribution of economic outcomes over the reasonable and supportable forecast period, we generate four economic forecast scenarios using a combination of quantitative macroeconomic models, other measures of economic activity and forward-looking expert judgment. Each scenario is then given an associated probability (weight) 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 other financial assets. Each quarter, the scenarios and their respective weights are presented to RAC for approval.

The scenarios used for the period ended March 31, 2026 consider, among other factors, ongoing geopolitical conflicts, higher energy prices and the impacts of trade and fiscal policy, including tariffs, on the U.S. economic outlook. Given these factors, growth is expected to remain steady with current levels in the coming quarters. While recession risks remain elevated, our most likely expectation is that the U.S. economy avoids a recession. We believe the economic scenarios effectively reflect the distribution of potential economic outcomes.

We used a number of economic variables in our scenarios, with two of the most significant drivers being 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 March 31, 2026 and December 31, 2025.

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

Table 37: Key Macroeconomic Variables in CECL Weighted-Average Scenarios

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

(b)Represents quarterly average rate at December 31, 2026, 2027 and 2028, respectively.

Real GDP growth is expected to end 2026 at 1.2% on a weighted average basis, up from the 0.5% assumed at December 31, 2025. Growth continues through 2027, reaching 1.6% in the fourth quarter of 2027 before increasing to 2.0% in 2028. Unemployment is expected to increase slightly over the next year. The weighted-average unemployment rate will end 2026 at 4.8%, peaking at 5.1% in mid-2027, before improving to 4.6% by the end of 2028.

Qualitative Component

As discussed in the Allowance for Credit Losses section of Note 1 Accounting Policies in our 2025 Form 10-K, we incorporate qualitative reserves in the ACL that reflect our best estimate of expected losses that may not be adequately represented in our quantitative methods or economic assumptions. Qualitative factors may include, but are not limited to, inherent forecasting limitations, model imprecision, timing of available information, and/or emerging and ongoing credit risks. At March 31, 2026, the qualitative framework considers PNC’s view of the current state of the economy, which continues to reflect uncertainty due to the fundamental change in office demand, tariff and trade driven pressures and stress on consumers. Our most significant qualitative factor was related to the office portfolio of the commercial real estate loan class.

See the following for additional information related to our ACL:

• Allowance for Credit Losses in the Credit Risk Management section of this Financial Review,
• Note 3 Investment Securities and Note 4 Loans and Related Allowance for Credit Losses in this Report, and
• Note 1 Accounting Policies in our 2025 Form 10-K.

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

Recently Issued Accounting Standards

Accounting Standards Update Description Financial Statement Impact

Disaggregation of Income Statement Expenses - ASU 2024-03 Issued November 2024

• Required with issuance of 2027 Form 10-K; early adoption is permitted.
• Requires public business entities to disclose, in the notes to financial statements and on an annual and interim basis, specified information about certain costs and expenses (including, if relevant: inventory purchases, employee compensation, depreciation, intangible asset amortization, and depreciation from oil and gas-producing activities).
• Requires qualitative descriptions of amounts not separately disaggregated to be disclosed.
• Requires disclosure of the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses.
• Allows for either a prospective or retrospective transition approach.
• We are currently evaluating the disclosure requirements within this ASU and do not plan to early adopt.
• This ASU will not impact our Consolidated Income Statement, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Consolidated Statement of Changes in Equity or Consolidated Statement of Cash Flows.
• We expect to provide additional disaggregated income statement expense disclosures in accordance with this ASU.

Targeted Improvements to the Accounting for Internal-Use Software - ASU 2025-06 Issued September 2025

• Required with issuance of 2028 Form 10-K; early adoption is permitted.
• Removes all references to project stages throughout Subtopic 350-40.
• Requires entities to start capitalizing software costs when both of the following occur: (1) management has authorized and committed to funding the software project and (2) it is probable that the project will be completed and the software will be used to perform the function(s) intended.
• Clarifies that (1) the disclosures in Subtopic 360-10, Property, Plant, and Equipment – Overall, are required for all capitalized internal-use software costs and (2) the intangibles disclosures in paragraphs 350-30-50-1 through 50-3 are not required for capitalized internal-use software costs.
• Supersedes Subtopic 350-50, Intangibles – Goodwill and Other – Website Development Costs, and incorporates relevant and incremental guidance unique to website-specific development costs into Subtopic 350-40.
• Allows for either a prospective, modified prospective, or retrospective transition approach.
• We do not plan to early adopt.
• This ASU will not impact our Consolidated Income Statement, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Consolidated Statement of Changes in Equity and Consolidated Statement of Cash Flows.

INTERNAL CONTROLS AND DISCLOSURE CONTROLS AND PROCEDURES

As of March 31, 2026, we performed an evaluation under the supervision of and with the participation of our management, including the Chairman 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 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 March 31, 2026, and that there has been no change in PNC’s internal control over financial reporting that occurred during the first quarter of 2026 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

As permitted by SEC guidance that an assessment of internal controls over financial reporting of a recently acquired business may be excluded from management’s evaluation of disclosure controls and procedures for up to a year from the date of acquisition, we have excluded FirstBank from management’s reporting on internal control over financial reporting for the quarter ended March 31, 2026. We will continue to evaluate the effectiveness of internal controls over financial reporting as we complete the integration of FirstBank with that of PNC and PNC Bank and will make changes to our internal control framework, as necessary. The acquisition of FirstBank contributed $29.1 billion of assets, or 5% of our total assets, at March 31, 2026 and $266 million of revenue, or 4% of our total revenue, for the three months ended March 31, 2026.

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

CONSOLIDATED INCOME STATEMENT

THE PNC FINANCIAL SERVICES GROUP, INC.

See accompanying Notes to Consolidated Financial Statements.

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

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

THE PNC FINANCIAL SERVICES GROUP, INC.

See accompanying Notes to Consolidated Financial Statements.

The PNC Financial Services Group, Inc. – Form 10-Q 45

CONSOLIDATED BALANCE SHEET

THE PNC FINANCIAL SERVICES GROUP, INC.

(a)Our consolidated assets included the following for which we have elected the fair value option: Loans held for sale of $1.2 billion, Loans held for investment of $1.1 billion and Other assets of $0.1 billion at March 31, 2026. Comparable amounts at December 31, 2025 were $1.7 billion, $1.1 billion and $0.2 billion, respectively.

(b)Our consolidated liabilities included the following for which we have elected the fair value option: Interest-bearing deposits of $0.7 billion, Other borrowed funds of less than $0.1 billion and Other liabilities of $0.1 billion at March 31, 2026. Comparable amounts at December 31, 2025 were $3.6 billion, less than $0.1 billion and $0.1 billion, respectively.

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

See accompanying Notes to Consolidated Financial Statements.

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

CONSOLIDATED STATEMENT OF CASH FLOWS

THE PNC FINANCIAL SERVICES GROUP, INC.

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

CONSOLIDATED STATEMENT OF CASH FLOWS

THE PNC FINANCIAL SERVICES GROUP, INC.

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

(b)Includes restricted cash at end of period of $965 million and $992 million for the three months ended March 31, 2026 and 2025, respectively.

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

See accompanying Notes to Consolidated Financial Statements.

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

THE PNC FINANCIAL SERVICES GROUP, INC.

Unaudited

See page 93 for a glossary of certain terms and acronyms used in this Report.

BUSINESS

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

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

NOTE 1 ACCOUNTING POLICIES

Basis of Financial Statement Presentation

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

On January 5, 2026, we acquired FirstBank Holding Company, including its banking subsidiary, FirstBank. Our results for the three months ended March 31, 2026 reflect FirstBank’s acquired business operations for the period since the acquisition closed on January 5, 2026 and our balance sheet at March 31, 2026 includes FirstBank balances. See Note 2 Acquisition Activity for additional information on this acquisition.

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

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

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

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

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

Loans

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

Allowance for Credit Losses

Purchased Seasoned Loans

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

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

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

Use of Estimates

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

Recently Adopted Accounting Standards

Accounting Standards Update Description Financial Statement Impact

Purchased Loans - ASU 2025-08 Issued November 2025

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

NOTE 2 ACQUISITION ACTIVITY

Acquisition of FirstBank Holding Company

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

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

PNC incurred $98 million in costs for the three months ended March 31, 2026, in connection with the transaction. These costs are primarily comprised of legal, advisory and personnel related costs.

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

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

Table 38: Acquisition Consideration

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

Preliminary goodwill of $2.3 billion recorded in connection with the transaction resulted from the reputation, operating model and expertise of FirstBank. The amount of goodwill recorded reflected the increased market share and related synergies that resulted from the acquisition and represents the excess purchase price over the estimated fair value of the net assets from FirstBank. The goodwill was allocated to our Retail Banking segment and is not deductible for income tax purposes. See Note 6 Goodwill and Mortgage Servicing Rights for additional information on our goodwill.

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

Table 39: Fair Value and Unpaid Principal Balance of Loans from the FirstBank Acquisition

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

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

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

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

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

Investment Securities

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

Loans

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

Core Deposit Intangible

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

Deposits

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

Purchased Loan Activity

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

Table 40: PCD Loan Activity

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

Table 41: PSL Activity

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

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

NOTE 3 INVESTMENT SECURITIES

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

Table 42: Investment Securities Summary (a) (b)

(a) At March 31, 2026, the accrued interest associated with our held-to-maturity and available-for-sale portfolios totaled $212 million and $266 million, respectively. The comparable amounts at December 31, 2025 were $219 million and $348 million, respectively. These amounts are included in Other assets on the Consolidated Balance Sheet.

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

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

(d) Held-to-maturity securities transferred from available-for-sale are included in held-to-maturity at fair value at the time of the transfer. The amortized cost of held-to-maturity securities included net unrealized losses of $2.5 billion at March 31, 2026 related to securities transferred, which are offset in AOCI, net of tax. The comparable amount at December 31, 2025 was $2.7 billion.

The fair value of investment securities is impacted by interest rates, credit spreads, market volatility and liquidity conditions. Securities available-for-sale are carried at fair value with net unrealized gains and losses included in Total shareholders’ equity as AOCI, unless credit-related. Net unrealized gains and losses are determined by taking the difference between the fair value of a security and its amortized cost, net of any allowance. Securities held-to-maturity are carried at amortized cost, net of any allowance. Investment securities at March 31, 2026 included $1.3 billion of net unsettled purchases that represent non-cash investing activity, and accordingly, are not reflected on the Consolidated Statement of Cash Flows. The comparable amount at March 31, 2025 was $0.3 billion of net unsettled purchases.

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

At March 31, 2026, AOCI included pre-tax losses of $225 million from derivatives that hedged the purchase of investment securities classified as held-to-maturity. The losses will be accreted to interest income as an adjustment of yield on the securities.

Table 43 presents the gross unrealized losses and fair value of securities available-for-sale that do not have an associated allowance for investment securities at March 31, 2026 and December 31, 2025. These securities are segregated between investments that had been in a continuous unrealized loss position for less than twelve months and twelve months or more, based on the point in time that the fair

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

value declined below the amortized cost basis. All securities included in the table have been evaluated to determine if a credit loss exists. As part of that assessment, as of March 31, 2026, we concluded that we do not intend to sell and believe we will not be required to sell these securities prior to recovery of the amortized cost basis.

Table 43: Gross Unrealized Loss and Fair Value of Securities Available-for-Sale Without an Allowance for Credit Losses

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

Table 44: Gains (Losses) on Sales of Securities Available-for-Sale

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

The following table presents, by remaining contractual maturity, the amortized cost, fair value and weighted-average yield of debt securities at March 31, 2026.

Table 45: Contractual Maturity of Debt Securities

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

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

Table 46: Fair Value of Securities Pledged and Accepted as Collateral

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

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

NOTE 4 LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES

Loan Portfolio

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

• Commercial Consumer

• Commercial and industrial

• Residential real estate

• Commercial real estate

• Home equity

• Automobile

• Credit card

• Other consumer

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

Credit Quality

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

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

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

Table 47 presents the composition and delinquency status of our loan portfolio at March 31, 2026 and December 31, 2025. Loan delinquencies include government insured or guaranteed loans and loans accounted for under the fair value option.

Table 47: Analysis of Loan Portfolio (a) (b)