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PNC Financial Services Group, Inc. – ‘8-K’ for 1/15/21 – ‘EX-99.1’

On: Friday, 1/15/21, at 1:20pm ET · For: 1/15/21 · Accession #: 713676-21-16 · File #: 1-09718

  As Of               Filer                 Filing    For·On·As Docs:Size

 1/15/21  PNC Fin’l Services Group, Inc.    8-K:2,8,9   1/15/21   14:6.9M

Current Report — Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                      HTML     28K 
 2: EX-99.1     Miscellaneous Exhibit                               HTML    604K 
 3: EX-99.2     Miscellaneous Exhibit                               HTML     41K 
10: R1          Cover Page                                          HTML     52K 
12: XML         IDEA XML File -- Filing Summary                      XML     13K 
 9: XML         XBRL Instance -- pnc-20210115_htm                    XML     29K 
11: EXCEL       IDEA Workbook of Financial Reports                  XLSX      6K 
 5: EX-101.CAL  XBRL Calculations -- pnc-20210115_cal                XML      7K 
 6: EX-101.DEF  XBRL Definitions -- pnc-20210115_def                 XML     45K 
 7: EX-101.LAB  XBRL Labels -- pnc-20210115_lab                      XML     92K 
 8: EX-101.PRE  XBRL Presentations -- pnc-20210115_pre               XML     44K 
 4: EX-101.SCH  XBRL Schema -- pnc-20210115                          XSD     13K 
13: JSON        XBRL Instance as JSON Data -- MetaLinks               15±    22K 
14: ZIP         XBRL Zipped Folder -- 0000713676-21-000016-xbrl      Zip     94K

‘EX-99.1’ — Miscellaneous Exhibit
Exhibit Table of Contents

Page	(sequential)	(alphabetic)	↑Top
		Alternative Formats (Word, et al.) Accruing Loans Past Due Accruing Loans Past Due 30 to 59 Days Accruing Loans Past Due 60 to 89 Days Accruing Loans Past Due 90 Days or More Allowance for Credit Losses Allowance for Credit Losses by Loan Class Asset Management Group Average Balance Sheet Average Consolidated Balance Sheet Balance Sheet Change in Allowance for Loan and Lease Losses Change in Nonperforming Assets Components of the Provision for (Recapture of) Credit Losses Under CECL Consolidated Balance Sheet Consolidated Income Statement Corporate & Institutional Banking Descriptions Details of Loans Details of Net Interest Margin Glossary of Terms Income and Revenue Income Statement Largest Individual Nonperforming Assets Loans Nonperforming Assets Nonperforming Assets by Type Period End Employees Per Share Related Information Retail Banking Summary of Business Segment Income and Revenue
1	1st Page – Filing Submission
"	Income Statement
"	Consolidated Income Statement
"	Balance Sheet
"	Consolidated Balance Sheet
"	Average Balance Sheet
"	Average Consolidated Balance Sheet
"	Details of Net Interest Margin
"	Per Share Related Information
"	Loans
"	Details of Loans
"	Allowance for Credit Losses
"	Change in Allowance for Loan and Lease Losses
"	Components of the Provision for (Recapture of) Credit Losses Under CECL
"	Allowance for Credit Losses by Loan Class
"	Nonperforming Assets
"	Nonperforming Assets by Type
"	Change in Nonperforming Assets
"	Largest Individual Nonperforming Assets
"	Accruing Loans Past Due
"	Accruing Loans Past Due 30 to 59 Days
"	Accruing Loans Past Due 60 to 89 Days
"	Accruing Loans Past Due 90 Days or More
"	Descriptions
"	Period End Employees
"	Income and Revenue
"	Summary of Business Segment Income and Revenue
"	Retail Banking
"	Corporate & Institutional Banking
"	Asset Management Group
"	Glossary of Terms

This Exhibit is an HTML Document rendered as filed. [ Alternative Formats ]

<! C: C:

Document

Exhibit 99.1

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2020

(Unaudited)

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2020

(UNAUDITED)


Consolidated Results:			Page
Income Statement			1
Balance Sheet			2
Average Balance Sheet			3
Details of Net Interest Margin			4
Per Share Related Information			5
Loans			6
Allowance for Credit Losses			7-8
Nonperforming Assets			9-10
Accruing Loans Past Due			11-12

Business Segment Results:
Descriptions			13
Period End Employees			13
Income and Revenue			14
Retail Banking			15-16
Corporate & Institutional Banking			17
Asset Management Group			18

Glossary of Terms			19-21

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on January 15, 2021. We have reclassified certain prior period amounts to be consistent with the current period presentation, which we believe is more meaningful to readers of our consolidated financial statements. This information speaks only as of the particular date or dates included in the schedules. We do not undertake any obligation to, and disclaim any duty to, correct or update any of the information provided in this Financial Supplement. Our future financial performance is subject to risks and uncertainties as described in our United States Securities and Exchange Commission (SEC) filings.

BUSINESS

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

DISCONTINUED OPERATIONS

On May 15, 2020, PNC completed the sale of its 31.6 million shares of BlackRock, Inc., common and preferred stock through a registered secondary offering. In addition, BlackRock repurchased 2.65 million shares from PNC. The total proceeds from the sale were $14.2 billion in cash, net of $.2 billion in expenses, and resulted in a gain on sale of $4.3 billion. Additionally, PNC contributed 500,000 BlackRock shares to the PNC Foundation on May 18, 2020. As a result, PNC has divested its entire holding in BlackRock. PNC and its affiliates only hold shares of BlackRock stock in a fiduciary capacity for clients of PNC and its affiliates. Activity for BlackRock for all periods presented on the Consolidated Income Statement have been reclassified to discontinued operations and prior period BlackRock investment balances have been reclassified to the Asset held for sale line on the Consolidated Balance Sheet in accordance with Accounting Standard Codification (ASC) 205-20, Presentation of Financial Statements - Discontinued Operations.

PENDING ACQUISITION OF BBVA USA BANCSHARES, INC.

On November 16, 2020, PNC announced the signing of a definitive agreement with BBVA, S.A. to acquire BBVA USA Bancshares, Inc., a U.S. financial holding company conducting its business operations primarily through its U.S. banking subsidiary, BBVA USA for a fixed purchase price of $11.6 billion in cash. BBVA USA has over 600 branches in Texas, Alabama, Arizona, California, Florida, Colorado and New Mexico. The transaction is expected to add approximately $102 billion in total assets, $86 billion of deposits and $66 billion of loans to PNC's Consolidated Balance Sheet and to close in mid-2021, subject to customary closing conditions, including receipt of regulatory approvals.


THE PNC FINANCIAL SERVICES GROUP, INC.
Cross Reference Index to Fourth Quarter 2020 Financial Supplement (Unaudited)
Financial Supplement Table Reference

Table	Description	Page
1	Consolidated Income Statement	1
2	Consolidated Balance Sheet	2
3	Average Consolidated Balance Sheet	3
4	Details of Net Interest Margin	4
5	Per Share Related Information	5
6	Details of Loans	6
7	Change in Allowance for Loan and Lease Losses	7
8	Components of the Provision for (Recapture of) Credit Losses Under CECL	8
9	Allowance for Credit Losses by Loan Class	8
10	Nonperforming Assets by Type	9
11	Change in Nonperforming Assets	10
12	Largest Individual Nonperforming Assets	10
13	Accruing Loans Past Due 30 to 59 Days	11
14	Accruing Loans Past Due 60 to 89 Days	11
15	Accruing Loans Past Due 90 Days or More	12
16	Period End Employees	13
17	Summary of Business Segment Income and Revenue	14
18	Retail Banking	15-16
19	Corporate & Institutional Banking	17
20	Asset Management Group	18


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 1

Table 1: Consolidated Income Statement (Unaudited)


	Three months ended															Year ended
	December 31			September 30			June 30			March 31			December 31			December 31			December 31
In millions, except per share data	2020			2020			2020			2020			2019			2020			2019
Interest Income
Loans	$	2,074		$	2,116		$	2,257		$	2,480		$	2,573		$	8,927		$	10,525
Investment securities	442			490			527			582			560			2,041			2,426
Other	60			70			71			138			201			339			811
Total interest income	2,576			2,676			2,855			3,200			3,334			11,307			13,762
Interest Expense
Deposits	53			74			141			375			468			643			1,986
Borrowed funds	99			118			187			314			378			718			1,811
Total interest expense	152			192			328			689			846			1,361			3,797
Net interest income	2,424			2,484			2,527			2,511			2,488			9,946			9,965
Noninterest Income
Asset management	221			215			199			201			216			836			862
Consumer services	387			390			330			377			390			1,484			1,555
Corporate services	650			479			512			526			499			2,167			1,914
Residential mortgage	99			137			158			210			87			604			368
Service charges on deposits	134			119			79			168			185			500			702
Other (a)	293			457			271			343			456			1,364			1,473
Total noninterest income	1,784			1,797			1,549			1,825			1,833			6,955			6,874
Total revenue	4,208			4,281			4,076			4,336			4,321			16,901			16,839
Provision For (Recapture of) Credit Losses	(254)			52			2,463			914			221			3,175			773
Noninterest Expense
Personnel	1,521			1,410			1,373			1,369			1,468			5,673			5,647
Occupancy	215			205			199			207			201			826			834
Equipment	296			292			301			287			348			1,176			1,210
Marketing	64			67			47			58			77			236			301
Other	612			557			595			622			668			2,386			2,582
Total noninterest expense	2,708			2,531			2,515			2,543			2,762			10,297			10,574
Income (loss) from continuing operations before income taxes and noncontrolling interests	1,754			1,698			(902)			879			1,338			3,429			5,492
Income taxes (benefit) from continuing operations	298			166			(158)			120			195			426			901
Net income (loss) from continuing operations	1,456			1,532			(744)			759			1,143			3,003			4,591
Income from discontinued operations before taxes							5,596			181			288			5,777			988
Income taxes from discontinued operations							1,197			25			50			1,222			161
Net income from discontinued operations							4,399			156			238			4,555			827
Net income	1,456			1,532			3,655			915			1,381			7,558			5,418
Less: Net income attributable to noncontrolling interests	14			13			7			7			14			41			49
Preferred stock dividends (b)	48			63			55			63			55			229			236
Preferred stock discount accretion and redemptions	1			1			1			1			1			4			4
Net income attributable to common shareholders	$	1,393		$	1,455		$	3,592		$	844		$	1,311		$	7,284		$	5,129
Earnings Per Common Share
Basic earnings (loss) from continuing operations	$	3.26		$	3.40		$	(1.90)		$	1.59		$	2.44		$	6.37		$	9.59
Basic earnings from discontinued operations							10.28			0.37			0.54			10.62			1.84
Total basic earnings	$	3.26		$	3.40		$	8.40		$	1.96		$	2.98		$	16.99		$	11.43
Diluted earnings (loss) from continuing operations	$	3.26		$	3.39		$	(1.90)		$	1.59		$	2.43		$	6.36		$	9.57
Diluted earnings from discontinued operations							10.28			0.36			0.54			10.60			1.82
Total diluted earnings	$	3.26		$	3.39		$	8.40		$	1.95		$	2.97		$	16.96		$	11.39
Average Common Shares Outstanding
Basic	425			426			426			429			437			427			447
Diluted	426			426			426			430			438			427			448
Efficiency	64		%	59		%	62		%	59		%	64		%	61		%	63		%
Noninterest income to total revenue	42		%	42		%	38		%	42		%	42		%	41		%	41		%
Effective tax rate from continuing operations (c)	17.0		%	9.8		%	17.5		%	13.7		%	14.6		%	12.4		%	16.4		%

(a)Includes net gains on sales of securities of $51 million, $32 million, $40 million, $182 million, and $12 million for the quarters ended December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020 and December 31, 2019, respectively. Amounts for the twelve months ended December 31, 2020 and December 31, 2019 were $305 million and $48 million, respectively.

(b)Dividends are payable quarterly other than Series O, Series R and Series S preferred stock, which are payable semiannually, with the Series O payable in different quarters than the Series R and Series S preferred stock.

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


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 2

Table 2: Consolidated Balance Sheet (Unaudited)


	December 31		September 30		June 30		March 31		December 31
In millions, except par value	2020		2020		2020		2020		2019
Assets
Cash and due from banks	$	7,017	$	6,629	$	6,338	$	7,493	$	5,061
Interest-earning deposits with banks (a)	85,173		70,959		50,233		19,986		23,413
Loans held for sale (b)	1,597		1,787		1,443		1,693		1,083
Asset held for sale (c)							8,511		8,558
Investment securities – available for sale	87,358		89,747		97,052		89,077		69,163
Investment securities – held to maturity	1,441		1,438		1,441		1,469		17,661
Loans (b)	241,928		249,279		258,236		264,643		239,843
Allowance for loan and lease losses (d)	(5,361)		(5,751)		(5,928)		(3,944)		(2,742)
Net loans	236,567		243,528		252,308		260,699		237,101
Equity investments	6,052		4,938		4,943		4,694		5,176
Mortgage servicing rights	1,242		1,113		1,067		1,082		1,644
Goodwill	9,233		9,233		9,233		9,233		9,233
Other (b)	30,999		32,445		34,920		41,556		32,202
Total assets	$	466,679	$	461,817	$	458,978	$	445,493	$	410,295
Liabilities
Deposits
Noninterest-bearing	$	112,637	$	107,281	$	99,458	$	81,614	$	72,779
Interest-bearing	252,708		247,798		246,539		223,590		215,761
Total deposits	365,345		355,079		345,997		305,204		288,540
Borrowed funds
Federal Home Loan Bank borrowings	3,500		5,500		8,500		23,491		16,341
Bank notes and senior debt	24,271		26,839		27,704		31,438		29,010
Subordinated debt	6,403		6,465		6,500		6,475		6,134
Other (b)	3,021		3,306		4,322		11,995		8,778
Total borrowed funds	37,195		42,110		47,026		73,399		60,263
Allowance for unfunded lending related commitments (d)	584		689		662		450		318
Accrued expenses and other liabilities	9,514		10,629		12,345		17,150		11,831
Total liabilities	412,638		408,507		406,030		396,203		360,952
Equity
Preferred stock (e)
Common stock - $5 par value
Authorized 800 shares, issued 543 shares	2,713		2,712		2,712		2,712		2,712
Capital surplus	15,884		15,836		16,284		16,288		16,369
Retained earnings	46,848		45,947		44,986		41,885		42,215
Accumulated other comprehensive income	2,770		2,997		3,069		2,518		799
Common stock held in treasury at cost:119, 118, 117, 118 and 109 shares	(14,205)		(14,216)		(14,128)		(14,140)		(12,781)
Total shareholders’ equity	54,010		53,276		52,923		49,263		49,314
Noncontrolling interests	31		34		25		27		29
Total equity	54,041		53,310		52,948		49,290		49,343
Total liabilities and equity	$	466,679	$	461,817	$	458,978	$	445,493	$	410,295

(a)Amounts include balances held with the Federal Reserve Bank of Cleveland of $84.9 billion, $70.6 billion, $50.0 billion, $19.6 billion and $23.2 billion as of December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020 and December 31, 2019, respectively.

(b)Amounts include assets and liabilities for which PNC has elected the fair value option. Our third quarter 2020 Form 10-Q included, and our 2020 Form 10-K will include, additional information regarding these items.

(c)Represents our held for sale investment in BlackRock. In the second quarter of 2020, PNC divested its entire holding in BlackRock. Prior period BlackRock investment balances have been reclassified to the Asset held for sale line in accordance with Accounting Standards Codification 205-20, Presentation of Financial Statements - Discontinued Operations. Our second and third quarter 2020 Form 10-Qs included, and our 2020 Form 10-K will include additional information.

(d)Amounts as of December 31, 2020, September 30, 2020, June 30, 2020 and March 31, 2020 reflect the impact of adopting Accounting Standards Update 2016-13, Financial Instruments - Credit Losses, which is commonly referred to as the Current Expected Credit Losses (CECL) standard and our transition from an incurred loss methodology for these reserves to an expected credit loss methodology. Our 2019 Form 10-K and 2020 Form 10-Qs included, and our 2020 Form 10-K will include, additional information related to our adoption of this standard.

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


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 3


Table 3: Average Consolidated Balance Sheet (Unaudited) (a)
	Three months ended										Year ended
	December 31		September 30		June 30		March 31		December 31		December 31		December 31
In millions	2020		2020		2020		2020		2019		2020		2019
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	$	48,036	$	52,215	$	52,500	$	49,636	$	33,937	$	50,594	$	31,526
Non-agency	1,337		1,437		1,529		1,617		1,582		1,480		1,746
Commercial mortgage-backed	6,568		6,927		7,232		6,734		6,054		6,865		5,676
Asset-backed	5,017		5,033		5,309		5,003		5,059		5,090		5,199
U.S. Treasury and government agencies	18,783		18,724		15,457		15,938		15,966		17,234		17,642
Other	4,561		4,723		4,952		4,024		2,849		4,564		3,200
Total securities available for sale	84,302		89,059		86,979		82,952		65,447		85,827		64,989
Securities held to maturity
Residential mortgage-backed									14,943				15,421
Commercial mortgage-backed									498				553
Asset-backed					22		51		54		18		120
U.S. Treasury and government agencies	793		788		783		779		774		786		767
Other	650		655		646		640		1,794		648		1,816
Total securities held to maturity	1,443		1,443		1,451		1,470		18,063		1,452		18,677
Total investment securities	85,745		90,502		88,430		84,422		83,510		87,279		83,666
Loans
Commercial and industrial	134,944		139,795		153,595		128,723		124,876		139,254		123,524
Commercial real estate	28,991		29,081		28,707		28,275		28,670		28,765		28,526
Equipment lease financing	6,380		6,771		7,035		7,066		7,199		6,812		7,255
Consumer	52,872		54,692		56,485		57,680		56,765		55,423		55,671
Residential real estate	22,638		22,753		22,292		21,828		21,341		22,379		20,040
Total loans	245,825		253,092		268,114		243,572		238,851		252,633		235,016
Interest-earning deposits with banks (b)	76,374		60,327		34,600		17,569		23,316		47,333		16,878
Other interest-earning assets	8,134		9,752		10,867		9,468		11,371		9,553		12,425
Total interest-earning assets	416,078		413,673		402,011		355,031		357,048		396,798		347,985
Noninterest-earning assets	48,901		48,466		55,302		57,405		54,371		52,497		52,350
Total assets	$	464,979	$	462,139	$	457,313	$	412,436	$	411,419	$	449,295	$	400,335
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	62,621	$	63,598	$	61,346	$	53,287	$	56,209	$	60,229	$	55,505
Demand	88,026		87,226		82,881		70,931		69,496		82,295		65,729
Savings	79,430		77,479		75,345		69,977		66,827		75,574		62,938
Time deposits	19,448		20,248		21,873		21,141		21,600		20,673		20,416
Total interest-bearing deposits	249,525		248,551		241,445		215,336		214,132		238,771		204,588
Borrowed funds
Federal Home Loan Bank borrowings	4,761		7,196		12,559		13,440		18,944		9,470		22,253
Bank notes and senior debt	24,022		25,858		28,298		29,988		27,403		27,030		26,781
Subordinated debt	5,936		5,936		5,937		5,934		5,760		5,936		5,588
Other	3,433		4,354		6,435		7,826		7,926		5,502		6,906
Total borrowed funds	38,152		43,344		53,229		57,188		60,033		47,938		61,528
Total interest-bearing liabilities	287,677		291,895		294,674		272,524		274,165		286,709		266,116
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits	109,878		101,931		93,776		74,396		73,626		95,055		72,212
Accrued expenses and other liabilities	14,348		15,341		16,989		16,437		14,541		15,774		13,371
Equity	53,076		52,972		51,874		49,079		49,087		51,757		48,636
Total liabilities and equity	$	464,979	$	462,139	$	457,313	$	412,436	$	411,419	$	449,295	$	400,335

(a)Calculated using average daily balances.

(b)Amounts include average balances held with the Federal Reserve Bank of Cleveland of $76.1 billion, $60.0 billion, $34.2 billion, $17.3 billion and $23.0 billion for the three months ended December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020 and December 31, 2019, respectively. Amounts include $47.0 billion and $16.6 billion for the twelve months ended December 31, 2020 and December 31, 2019, respectively.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 4


Table 4: Details of Net Interest Margin (Unaudited)
	Three months ended										Year ended
	December 31		September 30		June 30		March 31		December 31		December 31		December 31
	2020		2020		2020		2020		2019		2020		2019
Average yields/rates (a)
Yield on interest-earning assets
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	1.81	%	2.03	%	2.29	%	2.63	%	2.48	%	2.19	%	2.75	%
Non-agency	7.15	%	7.26	%	7.13	%	7.87	%	8.09	%	7.36	%	8.08	%
Commercial mortgage-backed	2.66	%	2.50	%	2.59	%	2.95	%	2.30	%	2.67	%	2.85	%
Asset-backed	2.04	%	2.44	%	2.60	%	3.05	%	3.26	%	2.53	%	3.31	%
U.S. Treasury and government agencies	1.77	%	1.64	%	1.77	%	2.29	%	2.31	%	1.88	%	2.47	%
Other	3.45	%	3.39	%	3.47	%	3.69	%	3.36	%	3.51	%	3.34	%
Total securities available for sale	2.05	%	2.16	%	2.39	%	2.77	%	2.65	%	2.35	%	2.90	%
Securities held to maturity
Residential mortgage-backed									2.63	%			2.84	%
Commercial mortgage-backed									4.44	%			3.80	%
Asset-backed					2.38	%	2.77	%	3.02	%			4.17	%
U.S. Treasury and government agencies	2.88	%	2.86	%	2.84	%	2.84	%	2.86	%	2.80	%	2.87	%
Other	4.20	%	4.20	%	4.27	%	4.48	%	4.47	%	4.32	%	4.41	%
Total securities held to maturity	3.47	%	3.47	%	3.47	%	3.56	%	2.87	%	3.44	%	3.03	%
Total investment securities	2.08	%	2.18	%	2.41	%	2.78	%	2.70	%	2.36	%	2.93	%
Loans
Commercial and industrial	2.87	%	2.82	%	2.83	%	3.62	%	3.88	%	3.07	%	4.17	%
Commercial real estate	2.63	%	2.65	%	2.84	%	3.64	%	3.89	%	2.98	%	4.33	%
Equipment lease financing	3.90	%	3.80	%	3.82	%	3.93	%	3.87	%	3.86	%	3.93	%
Consumer	4.74	%	4.69	%	4.86	%	5.38	%	5.45	%	4.93	%	5.54	%
Residential real estate	3.69	%	3.74	%	3.86	%	3.96	%	4.10	%	3.81	%	4.21	%
Total loans	3.35	%	3.32	%	3.37	%	4.08	%	4.27	%	3.55	%	4.51	%
Interest-earning deposits with banks	0.10	%	0.10	%	0.10	%	1.27	%	1.66	%	0.21	%	2.09	%
Other interest-earning assets	1.99	%	2.23	%	2.26	%	3.51	%	3.65	%	2.50	%	3.69	%
Total yield on interest-earning assets	2.46	%	2.57	%	2.85	%	3.62	%	3.71	%	2.87	%	3.98	%
Rate on interest-bearing liabilities
Interest-bearing deposits
Money market	0.05	%	0.07	%	0.15	%	0.72	%	0.93	%	0.23	%	1.10	%
Demand	0.04	%	0.05	%	0.08	%	0.41	%	0.51	%	0.13	%	0.54	%
Savings	0.08	%	0.11	%	0.31	%	0.79	%	0.97	%	0.31	%	1.11	%
Time deposits	0.41	%	0.58	%	0.80	%	1.34	%	1.52	%	0.79	%	1.60	%
Total interest-bearing deposits	0.08	%	0.12	%	0.23	%	0.70	%	0.87	%	0.27	%	0.97	%
Borrowed funds
Federal Home Loan Bank borrowings	0.40	%	0.47	%	1.00	%	1.69	%	2.11	%	1.09	%	2.56	%
Bank notes and senior debt	1.00	%	1.08	%	1.56	%	2.41	%	2.77	%	1.58	%	3.24	%
Subordinated debt	1.38	%	1.51	%	1.91	%	2.73	%	3.06	%	1.89	%	3.83	%
Other	1.39	%	1.31	%	0.92	%	1.69	%	1.89	%	1.36	%	2.30	%
Total borrowed funds	1.02	%	1.06	%	1.39	%	2.18	%	2.47	%	1.50	%	2.94	%
Total rate on interest-bearing liabilities	0.21	%	0.26	%	0.44	%	1.00	%	1.21	%	0.47	%	1.43	%
Interest rate spread	2.25	%	2.31	%	2.41	%	2.62	%	2.50	%	2.40	%	2.55	%
Benefit from use of noninterest bearing sources (b)	0.07		0.08		0.11		0.22		0.28		0.13		0.34
Net interest margin	2.32	%	2.39	%	2.52	%	2.84	%	2.78	%	2.53	%	2.89	%

(a)Yields and rates are calculated using the applicable annualized interest income or interest expense divided by the applicable average earning assets or interest-bearing liabilities. Net interest margin is the total yield on interest-earning assets minus the total rate on interest-bearing liabilities and includes the benefit from use of noninterest-bearing sources. To provide more meaningful comparisons of net interest margins, we use net interest income on a taxable-equivalent basis in calculating average yields used in the calculation of net interest margin by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under generally accepted accounting principles (GAAP) in the Consolidated Income Statement. The taxable-equivalent adjustments to net interest income for the three months ended December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020 and December 31, 2019 were $17 million, $17 million, $19 million, $22 million and $23 million, respectively. The taxable-equivalent adjustments to net interest income for the years ended December 31, 2020 and December 31, 2019 were $75 million and $103 million, respectively.

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


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 5


Table 5: Per Share Related Information (Unaudited)
	Three months ended										Year ended
	December 31		September 30		June 30		March 31		December 31		December 31		December 31
In millions, except per share data	2020		2020		2020		2020		2019		2020		2019
Basic
Net income (loss) from continuing operations	$	1,456	$	1,532	$	(744)	$	759	$	1,143	$	3,003	$	4,591
Less:
Net income attributable to noncontrolling interests	14		13		7		7		14		41		49
Preferred stock dividends	48		63		55		63		55		229		236
Preferred stock discount accretion and redemptions	1		1		1		1		1		4		4
Net income (loss) from continuing operations attributable to common shareholders	1,393		1,455		(807)		688		1,073		2,729		4,302
Less: Dividends and undistributed earnings allocated to nonvested restricted shares	6		8		1		3		5		13		18
Net income (loss) from continuing operations attributable to basic common shareholders	$	1,387	$	1,447	$	(808)	$	685	$	1,068	$	2,716	$	4,284
Net income from discontinued operations attributable to common shareholders					$	4,399	$	156	$	238	$	4,555	$	827
Less: Undistributed earnings allocated to nonvested restricted shares					21		1		1		22		3
Net income from discontinued operations attributable to basic common shareholders					$	4,378	$	155	$	237	$	4,533	$	824
Basic weighted-average common shares outstanding	425		426		426		429		437		427		447
Basic earnings (loss) per common share from continuing operations (a)	$	3.26	$	3.40	$	(1.90)	$	1.59	$	2.44	$	6.37	$	9.59
Basic earnings per common share from discontinued operations (a)					$	10.28	$	0.37	$	0.54	$	10.62	$	1.84
Basic earnings per common share	$	3.26	$	3.40	$	8.40	$	1.96	$	2.98	$	16.99	$	11.43
Diluted
Net income (loss) from continuing operations attributable to diluted common shareholders	$	1,387	$	1,447	$	(808)	$	685	$	1,068	$	2,716	$	4,284
Net income from discontinued operations attributable to basic common shareholders					$	4,378	$	155	$	237	$	4,533	$	824
Less: Impact of earnings per share dilution from discontinued operations					1		1		3		2		10
Net income from discontinued operations attributable to diluted common shareholders					$	4,377	$	154	$	234	$	4,531	$	814
Basic weighted-average common shares outstanding	425		426		426		429		437		427		447
Dilutive potential common shares	1						1		1				1
Diluted weighted-average common shares outstanding	426		426		426		430		438		427		448
Diluted earnings (loss) per common share from continuing operations (a)	$	3.26	$	3.39	$	(1.90)	$	1.59	$	2.43	$	6.36	$	9.57
Diluted earnings per common share from discontinued operations (a)					$	10.28	$	0.36	$	0.54	$	10.60	$	1.82
Diluted earnings per common share	$	3.26	$	3.39	$	8.40	$	1.95	$	2.97	$	16.96	$	11.39

(a)Dividends are payable quarterly other than the Series O, Series R and Series S preferred stock, which are payable semiannually, with the Series O payable in different quarters than the Series R and Series S preferred stock.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 6

Table 6: Details of Loans (Unaudited)


	December 31		September 30		June 30		March 31		December 31
In millions	2020		2020		2020		2020		2019
Commercial
Commercial and industrial
Manufacturing	$	20,712	$	22,551	$	25,590	$	27,225	$	21,540
Retail/wholesale trade	20,218		20,287		21,747		24,408		21,565
Service providers	19,419		20,260		21,347		19,411		16,112
Real estate related (a)	13,369		14,040		14,634		14,843		12,346
Financial services	14,909		15,005		13,596		13,473		11,318
Health care	8,987		9,368		10,109		9,238		8,035
Transportation and warehousing	7,095		7,295		7,771		8,160		7,474
Other industries	27,364		28,381		29,541		32,373		26,947
Total commercial and industrial	132,073		137,187		144,335		149,131		125,337
Commercial real estate	28,716		29,028		28,763		28,544		28,110
Equipment lease financing	6,414		6,479		7,097		7,061		7,155
Total commercial	167,203		172,694		180,195		184,736		160,602
Consumer
Home equity	24,088		24,539		24,879		25,081		25,085
Residential real estate	22,560		22,886		22,469		22,250		21,821
Automobile	14,218		14,977		16,157		17,194		16,754
Credit card	6,215		6,303		6,575		7,132		7,308
Education	2,946		3,051		3,132		3,247		3,336
Other consumer	4,698		4,829		4,829		5,003		4,937
Total consumer	74,725		76,585		78,041		79,907		79,241
Total loans	$	241,928	$	249,279	$	258,236	$	264,643	$	239,843

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


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 7

Allowance for Credit Losses (Unaudited)

Table 7: Change in Allowance for Loan and Lease Losses


	Three months ended															Year ended
	December 31			September 30			June 30			March 31			December 31			December 31			December 31
Dollars in millions	2020			2020			2020			2020			2019			2020			2019
Allowance for loan and lease losses
Beginning balance	$	5,751		$	5,928		$	3,944		$	2,742		$	2,738		$	2,742		$	2,629
Adoption of ASU 2016-03 (a)										463						463
Gross charge-offs:
Commercial and industrial	(133)			(59)			(112)			(78)			(67)			(382)			(183)
Commercial real estate	(1)			(1)									(2)			(2)			(18)
Equipment lease financing	(4)			(4)			(10)			(5)			(9)			(23)			(15)
Home equity	(11)			(12)			(8)			(11)			(16)			(42)			(68)
Residential real estate	(6)			(2)						(2)			(4)			(10)			(9)
Automobile	(55)			(57)			(69)			(84)			(78)			(265)			(261)
Credit card	(72)			(74)			(76)			(78)			(70)			(300)			(263)
Education	(3)			(3)			(4)			(6)			(6)			(16)			(26)
Other consumer	(42)			(35)			(35)			(40)			(39)			(152)			(131)
Total gross charge-offs	(327)			(247)			(314)			(304)			(291)			(1,192)			(974)
Recoveries:
Commercial and industrial	23			21			13			18			14			75			59
Commercial real estate	3			2						4			3			9			11
Equipment lease financing	3			3			2			2			2			10			8
Home equity	17			15			15			14			18			61			74
Residential real estate	4			4			4			4			3			16			14
Automobile	33			31			29			35			29			128			114
Credit card	9			9			9			8			6			35			27
Education	2			2			2			2			2			8			8
Other consumer	4			5			4			5			5			18			17
Total recoveries	98			92			78			92			82			360			332
Net (charge-offs) / recoveries:
Commercial and industrial	(110)			(38)			(99)			(60)			(53)			(307)			(124)
Commercial real estate	2			1						4			1			7			(7)
Equipment lease financing	(1)			(1)			(8)			(3)			(7)			(13)			(7)
Home equity	6			3			7			3			2			19			6
Residential real estate	(2)			2			4			2			(1)			6			5
Automobile	(22)			(26)			(40)			(49)			(49)			(137)			(147)
Credit card	(63)			(65)			(67)			(70)			(64)			(265)			(236)
Education	(1)			(1)			(2)			(4)			(4)			(8)			(18)
Other consumer	(38)			(30)			(31)			(35)			(34)			(134)			(114)
Total net (charge-offs)	(229)			(155)			(236)			(212)			(209)			(832)			(642)
Provision for (recapture of) credit losses (b)	(164)			(23)			2,220			952			221			2,985			773
Net (increase) in allowance for unfunded loan commitments and letters of credit													(14)						(33)
Other	3			1						(1)			6			3			15
Ending balance	$	5,361		$	5,751		$	5,928		$	3,944		$	2,742		$	5,361		$	2,742
Supplemental Information
Net charge-offs
Commercial net charge-offs	$	(109)		$	(38)		$	(107)		$	(59)		$	(59)		$	(313)		$	(138)
Consumer net charge-offs	(120)			(117)			(129)			(153)			(150)			(519)			(504)
Total net charge-offs	$	(229)		$	(155)		$	(236)		$	(212)		$	(209)		$	(832)		$	(642)
Net charge-offs to average loans (c)	0.37		%	0.24		%	0.35		%	0.35		%	0.35		%	0.33		%	0.27		%
Commercial	0.25		%	0.09		%	0.23		%	0.14		%	0.15		%	0.18		%	0.09		%
Consumer	0.63		%	0.60		%	0.66		%	0.77		%	0.76		%	0.67		%	0.67		%

(a) Represents the impact of adopting ASU 2016-13, Financial Instruments - Credit Losses on January 1, 2020, and our transition from an incurred loss methodology for our reserves to an expected credit loss methodology. Our 2019 Form 10-K and our 2020 Form 10-Qs included, and 2020 Form 10-K will include, additional information related to our adoption of the CECL standard.

(b) See Table 8 for the components of the Provision for (recapture of) credit losses under CECL being reported on the Consolidated Income Statement.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 8

Allowance for Credit Losses (Unaudited) (Continued)

Table 8: Components of the Provision for (Recapture of) Credit Losses Under CECL


	Three months ended								Year ended
	December 31		September 30		June 30		March 31		December 31
In millions	2020		2020		2020		2020		2020
Provision for (recapture of) credit losses
Loans and leases	$	(164)	$	(23)	$	2,220	$	952	$	2,985
Unfunded lending related commitments	(105)		27		212		(47)		87
Investment securities	11		39		30				80
Other financial assets	4		9		1		9		23
Total provision for (recapture of) credit losses	$	(254)	$	52	$	2,463	$	914	$	3,175

Table 9: Allowance for Credit Losses by Loan Class (a)


	December 31, 2020						September 30, 2020						December 31, 2019
Dollars in millions	Allowance Amount		Total Loans		% of Total Loans		Allowance Amount		Total Loans		% of Total Loans		Allowance Amount		Total Loans		% of Total Loans
Allowance for loan and lease losses
Commercial
Commercial and industrial	$	2,300	$	132,073	1.74	%	$	2,735	$	137,187	1.99	%	$	1,489	$	125,337	1.19	%
Commercial real estate	880		28,716		3.06	%	630		29,028		2.17	%	278		28,110		0.99	%
Equipment lease financing	157		6,414		2.45	%	163		6,479		2.52	%	45		7,155		0.63	%
Total commercial	3,337		167,203		2.00	%	3,528		172,694		2.04	%	1,812		160,602		1.13	%
Consumer
Home equity	313		24,088		1.30	%	349		24,539		1.42	%	87		25,085		0.35	%
Residential real estate	28		22,560		0.12	%	28		22,886		0.12	%	258		21,821		1.18	%
Automobile	379		14,218		2.67	%	404		14,977		2.70	%	160		16,754		0.95	%
Credit card	816		6,215		13.13	%	891		6,303		14.14	%	288		7,308		3.94	%
Education	129		2,946		4.38	%	136		3,051		4.46	%	17		3,336		0.51	%
Other consumer	359		4,698		7.64	%	415		4,829		8.59	%	120		4,937		2.43	%
Total consumer	2,024		74,725		2.71	%	2,223		76,585		2.90	%	930		79,241		1.17	%
Total	5,361		$	241,928	2.22	%	5,751		$	249,279	2.31	%	2,742		$	239,843	1.14	%
Allowance for unfunded lending related commitments	584						689						318
Allowance for credit losses	$	5,945					$	6,440					$	3,060

Supplemental Information
Allowance for credit losses to total loans					2.46	%					2.58	%					1.28	%
Commercial					2.29	%					2.38	%					1.33	%
Consumer					2.84	%					3.04	%					1.18	%

(a) Excludes allowances for investment securities and other financial assets, which together totaled $109 million and $98 million at December 31, 2020 and September 30, 2020,

respectively.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 9

Details of Nonperforming Assets (Unaudited)

Table 10: Nonperforming Assets by Type


	December 31			September 30			June 30			March 31			December 31
Dollars in millions	2020			2020			2020			2020			2019
Nonperforming loans, including TDRs
Commercial
Commercial and industrial
Retail/wholesale trade	$	61		$	90		$	117		$	121		$	74
Manufacturing	81			80			58			79			102
Service providers	90			69			57			63			53
Real estate related (a)	95			140			158			25			24
Health care	20			20			19			14			17
Transportation and warehousing	20			14			20			23			18
Other industries	299			264			264			169			137
Total commercial and industrial	666			677			693			494			425
Commercial real estate	224			217			43			42			44
Equipment lease financing	33			21			22			30			32
Total commercial	923			915			758			566			501
Consumer (b)
Home equity	645			639			636			617			669
Residential real estate	528			339			305			292			315
Automobile	175			171			156			154			135
Credit card	8			13			15			10			11
Other consumer	7			8			6			5			4
Total consumer	1,363			1,170			1,118			1,078			1,134
Total nonperforming loans (c) (d)	2,286			2,085			1,876			1,644			1,635
OREO and foreclosed assets	51			67			79			111			117
Total nonperforming assets	$	2,337		$	2,152		$	1,955		$	1,755		$	1,752
Nonperforming loans to total loans	0.94		%	0.84		%	0.73		%	0.62		%	0.68		%
Nonperforming assets to total loans, OREO and foreclosed assets	0.97		%	0.86		%	0.76		%	0.66		%	0.73		%
Nonperforming assets to total assets	0.50		%	0.47		%	0.43		%	0.39		%	0.43		%
Allowance for loan and lease losses to nonperforming loans (e)	235		%	276		%	316		%	240		%	168		%

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

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

(c)Nonperforming loans exclude certain government insured or guaranteed loans, loans held for sale and loans accounted for under the fair value option. Amounts in 2019 also excluded purchased impaired loans.

(d)In connection with the adoption of the CECL standard, nonperforming loan amounts in 2020 include purchased credit deteriorated loans. Our 2019 Form 10-K and 2020 Form 10-Qs included, and our 2020 Form 10-K will include, additional information related to our adoption of this standard.

(e)Ratios in 2020 reflect the transition impact on our allowance for loan and lease losses from the adoption of the CECL standard along with the increases in reserves during 2020 due to the significant economic impact of COVID-19 and loan growth.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 10

Details of Nonperforming Assets (Unaudited) (Continued)

Table 11: Change in Nonperforming Assets


	October 1, 2020 -		July 1, 2020 -		April 1, 2020 -		January 1, 2020 -		October 1, 2019 -
In millions	December 31, 2020		September 30, 2020		June 30, 2020		March 31, 2020		December 31, 2019
Beginning balance	$	2,152	$	1,955	$	1,755	$	1,752	$	1,847
New nonperforming assets	586		512		458		391		357
Charge-offs and valuation adjustments	(97)		(75)		(104)		(145)		(218)
Principal activity, including paydowns and payoffs	(185)		(175)		(85)		(158)		(157)
Asset sales and transfers to loans held for sale	(14)		(20)		(28)		(20)		(21)
Returned to performing status	(105)		(45)		(41)		(65)		(56)
Ending balance	$	2,337	$	2,152	$	1,955	$	1,755	$	1,752

Table 12: Largest Individual Nonperforming Assets (a)


December 31, 2020 - Dollars in millions
Ranking	Outstandings		Industry
1	$	141	Real Estate and Rental and Leasing
2	46		Real Estate and Rental and Leasing
3	37		Real Estate and Rental and Leasing
4	33		Real Estate and Rental and Leasing
5	32		Mining, Quarrying, and Oil and Gas Extraction
6	31		Wholesale Trade
7	31		Real Estate and Rental and Leasing
8	30		Information
9	26		Manufacturing
10	26		Mining, Quarrying, and Oil and Gas Extraction
Total	$	433
As a percent of total nonperforming assets			19%

(a) Amounts shown are not net of related allowance for loan and lease losses, if applicable.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 11

Accruing Loans Past Due (Unaudited)

Pursuant to the interagency guidance issued in April 2020 and in connection with the credit reporting rules from the U.S. Coronavirus Aid, Relief and Economic Security Act (CARES Act), the delinquency status of loans modified due to COVID-19 related hardships are reported as of December 31, 2020, September 30, 2020 and June 30, 2020 in alignment with the rules set forth for banks to report delinquency status to the credit agencies. These rules require that COVID-19 related loan modifications be reported as follows:

•if current at the time of modification, the loan remains current throughout the modification period,

•if delinquent at the time of modification and the borrower was not made current as part of the modification, the loan maintains its reported as delinquent status during the modification period, or

•if delinquent at the time of modification and the borrower was made current as part of the modification or became current during the modification period, the loan is reported as current.

As a result, certain loans modified due to COVID-19 related hardships are not being reported as past due as of December 31, 2020, September 30, 2020 and June 30, 2020 based on the contractual terms of the loan, even where borrowers may not be making payments on their loans during the modification period. Our second and third quarter 2020 Form 10-Qs included, and our 2020 Form 10-K will include, additional information on COVID-19 related loan modifications.

Table 13: Accruing Loans Past Due 30 to 59 Days (a) (b)


	Amount										Percent of Total Outstandings
	Dec. 31		Sept. 30		Jun. 30		Mar. 31		Dec. 31		Dec. 31		Sept. 30		Jun. 30		Mar. 31		Dec. 31
Dollars in millions	2020		2020		2020		2020		2019		2020		2020		2020		2020		2019
Commercial and industrial	$	106	$	56	$	49	$	97	$	102	0.08	%	0.04	%	0.03	%	0.07	%	0.08	%
Commercial real estate	6		6		51		6		4		0.02	%	0.02	%	0.18	%	0.02	%	0.01	%
Equipment lease financing	31		7		8		42		49		0.48	%	0.11	%	0.11	%	0.59	%	0.68	%
Home equity	50		48		70		65		58		0.21	%	0.20	%	0.28	%	0.26	%	0.23	%
Residential real estate
Non government insured	89		99		135		121		90		0.39	%	0.43	%	0.60	%	0.54	%	0.41	%
Government insured	92		89		63		52		50		0.41	%	0.39	%	0.28	%	0.23	%	0.23	%
Automobile	134		116		105		177		178		0.94	%	0.77	%	0.65	%	1.03	%	1.06	%
Credit card	43		44		53		59		60		0.69	%	0.70	%	0.81	%	0.83	%	0.82	%
Education
Non government insured	5		6		3		7		7		0.17	%	0.20	%	0.10	%	0.22	%	0.21	%
Government insured	50		51		36		45		48		1.70	%	1.67	%	1.15	%	1.39	%	1.44	%
Other consumer	14		17		17		17		15		0.30	%	0.35	%	0.35	%	0.34	%	0.30	%
Total	$	620	$	539	$	590	$	688	$	661	0.26	%	0.22	%	0.23	%	0.26	%	0.28	%

Table 14: Accruing Loans Past Due 60 to 89 Days (a) (b)


	Amount										Percent of Total Outstandings
	Dec. 31		Sept. 30		Jun. 30		Mar. 31		Dec. 31		Dec. 31		Sept. 30		Jun. 30		Mar. 31		Dec. 31
Dollars in millions	2020		2020		2020		2020		2019		2020		2020		2020		2020		2019
Commercial and industrial	$	26	$	37	$	28	$	22	$	30	0.02	%	0.03	%	0.02	%	0.01	%	0.02	%
Commercial real estate	1		6		4		1		1		0.00	%	0.02	%	0.01	%	0.00	%	0.00	%
Equipment lease financing	5		4		9		2		5		0.08	%	0.06	%	0.13	%	0.03	%	0.07	%
Home equity	21		22		27		28		24		0.09	%	0.09	%	0.11	%	0.11	%	0.10	%
Residential real estate
Non government insured	16		22		34		30		16		0.07	%	0.10	%	0.15	%	0.13	%	0.07	%
Government insured	62		58		59		52		53		0.27	%	0.25	%	0.26	%	0.23	%	0.24	%
Automobile	34		32		34		49		47		0.24	%	0.21	%	0.21	%	0.28	%	0.28	%
Credit card	30		33		38		37		37		0.48	%	0.52	%	0.58	%	0.52	%	0.51	%
Education
Non government insured	2		2		2		4		3		0.07	%	0.07	%	0.06	%	0.12	%	0.09	%
Government insured	27		24		21		26		31		0.92	%	0.79	%	0.67	%	0.80	%	0.93	%
Other consumer	10		11		8		10		11		0.21	%	0.23	%	0.17	%	0.20	%	0.22	%
Total	$	234	$	251	$	264	$	261	$	258	0.10	%	0.10	%	0.10	%	0.10	%	0.11	%


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 12

Accruing Loans Past Due (Unaudited) (Continued)

Table 15: Accruing Loans Past Due 90 Days or More (a) (b)


	Amount										Percent of Total Outstandings
	Dec. 31		Sept. 30		Jun. 30		Mar. 31		Dec. 31		Dec. 31		Sept. 30		Jun. 30		Mar. 31		Dec. 31
Dollars in millions	2020		2020		2020		2020		2019		2020		2020		2020		2020		2019
Commercial and industrial	$	30	$	36	$	34	$	51	$	85	0.02	%	0.03	%	0.02	%	0.03	%	0.07	%
Residential real estate
Non government insured	27		28		19		18		14		0.12	%	0.12	%	0.08	%	0.08	%	0.06	%
Government insured	292		241		245		282		301		1.29	%	1.05	%	1.09	%	1.27	%	1.38	%
Automobile	12		12		19		19		18		0.08	%	0.08	%	0.12	%	0.11	%	0.11	%
Credit card	60		60		61		70		67		0.97	%	0.95	%	0.93	%	0.98	%	0.92	%
Education
Non government insured	2		1		1		2		2		0.07	%	0.03	%	0.03	%	0.06	%	0.06	%
Government insured	75		62		65		82		89		2.55	%	2.03	%	2.08	%	2.53	%	2.67	%
Other consumer	11		8		12		10		9		0.23	%	0.17	%	0.25	%	0.20	%	0.18	%
Total	$	509	$	448	$	456	$	534	$	585	0.21	%	0.18	%	0.18	%	0.20	%	0.24	%

(a) Excludes loans held for sale, amounts in 2019 also excluded purchased impaired loans.

(b) In connection with the adoption of the CECL standard, accruing loans past due amounts in 2020 include purchased credit deteriorated loans. Our 2019 Form 10-K and 2020 Form 10-Qs included, and our 2020 Form 10-K will include, additional information related to our adoption of this standard.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 13

Business Segment Descriptions (Unaudited)

Retail Banking provides deposit, lending, brokerage, insurance services, investment management and cash management products and services to consumer and small business customers. Our customers are serviced through our branch network, ATMs, call centers, online banking and mobile channels. The branch network is located primarily in markets across the Mid-Atlantic, Midwest and Southeast. In 2018, Retail Banking launched its national expansion strategy designed to grow customers with digitally-led banking and a thin branch network in markets outside of our existing retail branch network. Deposit products include checking, savings and money market accounts and certificates of deposit. Lending products include residential mortgages, home equity loans and lines of credit, auto loans, credit cards, education loans and personal and small business loans and lines of credit. The residential mortgage loans are directly originated within our branch network and nationwide, and are typically underwritten to agency and/or third-party standards, and either sold, servicing retained, or held on our balance sheet. Brokerage, investment management and cash management products and services include managed, education, retirement and trust accounts.

Corporate & Institutional Banking provides lending, treasury management, and capital markets-related products and services to mid-sized and large corporations, and government and not-for-profit entities. Lending products include secured and unsecured loans, letters of credit and equipment leases. The Treasury Management business provides payables, receivables, deposit and account services, liquidity and investments, and online and mobile banking products and services to our clients. Capital markets-related products and services include foreign exchange, derivatives, securities underwriting, loan syndications, mergers and acquisitions advisory and equity capital markets advisory related services. We also provide commercial loan servicing and technology solutions for the commercial real estate finance industry. Products and services are provided nationally.

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

•Wealth management provides products and services to individuals and their families including investment and retirement planning, customized investment management, private banking, and trust management and administration for individuals and their families.

•Our Hawthorn unit provides multi-generational family planning including estate, financial, tax planning, fiduciary, investment management and consulting, private banking, personal administrative services, asset custody and customized performance reporting to ultra high net worth clients.

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

Table 16: Period End Employees


	December 31	September 30	June 30	March 31	December 31
	2020	2020	2020	2020	2019
Full-time employees
Retail Banking	27,621	27,808	29,051	28,737	28,270
Other full-time employees	21,928	21,997	21,752	21,776	21,747
Total full-time employees	49,549	49,805	50,803	50,513	50,017
Part-time employees
Retail Banking	1,611	1,593	1,854	1,780	1,759
Other part-time employees	97	104	476	129	142
Total part-time employees	1,708	1,697	2,330	1,909	1,901
Total	51,257	51,502	53,133	52,422	51,918


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 14

Table 17: Summary of Business Segment Income and Revenue (Unaudited) (a)


	Three months ended										Year ended
	December 31		September 30		June 30		March 31		December 31		December 31		December 31
In millions	2020		2020		2020		2020		2019		2020		2019
Income
Retail Banking	$	336	$	530	$	(223)	$	201	$	277	$	844	$	1,213
Corporate & Institutional Banking	992		670		(358)		370		649		1,674		2,448
Asset Management Group	82		91		28		54		91		255		262
Other	46		241		(191)		134		126		230		668
Net income (loss) from continuing operations	$	1,456	$	1,532	$	(744)	$	759	$	1,143	$	3,003	$	4,591

Revenue
Retail Banking	$	1,853	$	2,056	$	1,975	$	2,244	$	2,054	$	8,128	$	8,168
Corporate & Institutional Banking	1,913		1,748		1,790		1,660		1,615		7,111		6,251
Asset Management Group	316		310		293		292		352		1,211		1,279
Other	126		167		18		140		300		451		1,141
Total revenue	$	4,208	$	4,281	$	4,076	$	4,336	$	4,321	$	16,901	$	16,839

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


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 15

Table 18: Retail Banking (Unaudited) (a)


	Three months ended															Year ended
	December 31			September 30			June 30			March 31			December 31			December 31			December 31
Dollars in millions	2020			2020			2020			2020			2019			2020			2019
Income Statement
Net interest income	$	1,380		$	1,383		$	1,390		$	1,456		$	1,402		$	5,609		$	5,520
Noninterest income	473			673			585			788			652			2,519			2,648
Total revenue	1,853			2,056			1,975			2,244			2,054			8,128			8,168
Provision for (recapture of) credit losses	(81)			(157)			761			445			161			968			517
Noninterest expense	1,482			1,512			1,497			1,528			1,516			6,019			6,011
Pretax earnings (loss)	452			701			(283)			271			377			1,141			1,640
Income taxes (benefit)	105			162			(63)			62			86			266			377
Noncontrolling interest	11			9			3			8			14			31			50
Earnings (loss)	$	336		$	530		$	(223)		$	201		$	277		$	844		$	1,213
Average Balance Sheet
Loans held for sale	$	672		$	700		$	829		$	779		$	747		$	745		$	627
Loans
Consumer
Home equity	$	22,366		$	22,647		$	22,790		$	22,736		$	22,590		$	22,633		$	22,657
Residential real estate	18,042			18,435			18,244			17,964			17,352			18,171			16,196
Automobile	14,536			15,573			16,688			17,096			16,427			15,968			15,510
Credit card	6,218			6,408			6,690			7,207			6,985			6,629			6,550
Education	3,027			3,119			3,218			3,343			3,428			3,176			3,611
Other consumer	2,086			2,262			2,454			2,533			2,418			2,334			2,244
Total consumer	66,275			68,444			70,084			70,879			69,200			68,911			66,768
Commercial	13,391			13,356			13,612			10,524			10,323			12,573			10,410
Total loans	$	79,666		$	81,800		$	83,696		$	81,403		$	79,523		$	81,484		$	77,178
Total assets	$	94,303		$	98,731		$	102,103		$	97,062		$	94,967		$	97,643		$	92,959
Deposits
Noninterest-bearing demand	$	43,818		$	43,752		$	39,134		$	32,225		$	32,674		$	39,754		$	31,675
Interest-bearing demand	50,702			49,274			47,339			42,865			41,689			47,557			42,077
Money market	24,112			23,816			22,942			22,866			23,927			23,436			25,317
Savings	72,041			70,236			67,947			62,781			59,877			68,267			56,722
Certificates of deposit	10,156			10,852			11,661			12,233			12,598			11,222			12,613
Total deposits	$	200,829		$	197,930		$	189,023		$	172,970		$	170,765		$	190,236		$	168,404
Performance Ratios
Return on average assets	1.41		%	2.13		%	(0.88)		%	0.84		%	1.16		%	0.86		%	1.30		%
Noninterest income to total revenue	26		%	33		%	30		%	35		%	32		%	31		%	32		%
Efficiency	80		%	74		%	76		%	68		%	74		%	74		%	74		%

(a)See note (a) on page 14.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 16

Retail Banking (Unaudited) (Continued)


	Three months ended															Year ended
	December 31			September 30			June 30			March 31			December 31			December 31			December 31
Dollars in millions, except as noted	2020			2020			2020			2020			2019			2020			2019
Supplemental Noninterest Income Information
Consumer services	$	369		$	371		$	315		$	372		$	382		$	1,427		$	1,530
Residential mortgage	$	99		$	137		$	158		$	210		$	87		$	604		$	368
Service charges on deposits	$	133		$	118		$	80		$	166		$	183		$	497		$	687
Residential Mortgage Information
Residential mortgage servicing statistics (in billions, except as noted) (a)
Serviced portfolio balance (b)	$	121		$	119		$	122		$	118		$	120
Serviced portfolio acquisitions	$	12		$	8		$	11		$	2		$	3		$	33		$	12
MSR asset value (b)	$	0.7		$	0.6		$	0.6		$	0.6		$	1.0
MSR capitalization value (in basis points) (b)	56			50			47			51			83
Servicing income: (in millions)
Servicing fees, net (c)	$	13		$	25		$	36		$	44		$	39		$	118		$	178
Mortgage servicing rights valuation, net of economic hedge	$	(1)		$	17		$	20		$	101		$	9		$	137		$	47
Residential mortgage loan statistics
Loan origination volume (in billions)	$	3.7		$	4.0		$	4.2		$	3.2		$	3.5		$	15.1		$	11.5
Loan sale margin percentage	3.75		%	3.62		%	3.67		%	3.16		%	2.42		%	3.57		%	2.41		%
Percentage of originations represented by:
*Purchase volume (d)*	45		%	44		%	34		%	36		%	40		%	40		%	47		%
Refinance volume	55		%	56		%	66		%	64		%	60		%	60		%	53		%
Other Information (b)
Customer-related statistics (average)
Non-teller deposit transactions (e)	66		%	67		%	65		%	59		%	58		%	64		%	57		%
Digital consumer customers (f)	77		%	75		%	73		%	71		%	71		%	74		%	69		%
Credit-related statistics
Nonperforming assets	$	1,211		$	1,077		$	1,037		$	1,011		$	1,046
Net charge-offs - loans and leases	$	136		$	125		$	142		$	166		$	154		$	569		$	534
Other statistics
ATMs	8,900			9,058			9,058			9,048			9,091
Branches (g)	2,162			2,207			2,256			2,277			2,296
Brokerage account client assets (in billions) (h)	$	59		$	55		$	53		$	49		$	54

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

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

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

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

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

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

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

(h)Includes cash and money market balances.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 17

Table 19: Corporate & Institutional Banking (Unaudited) (a)


	Three months ended															Year ended
	December 31			September 30			June 30			March 31			December 31			December 31			December 31
Dollars in millions	2020			2020			2020			2020			2019			2020			2019
Income Statement
Net interest income	$	994		$	1,025		$	1,064		$	966		$	969		$	4,049		$	3,714
Noninterest income	919			723			726			694			646			3,062			2,537
Total revenue	1,913			1,748			1,790			1,660			1,615			7,111			6,251
Provision for (recapture of) credit losses	(166)			211			1,585			458			65			2,088			284
Noninterest expense	801			663			670			722			726			2,856			2,813
Pretax earnings (loss)	1,278			874			(465)			480			824			2,167			3,154
Income taxes (benefit)	282			201			(110)			110			175			483			706
Noncontrolling interest	4			3			3									10
Earnings (loss)	$	992		$	670		$	(358)		$	370		$	649		$	1,674		$	2,448
Average Balance Sheet
Loans held for sale	$	1,039		$	904		$	704		$	395		$	616		$	762		$	505
Loans
Commercial
Commercial and industrial	$	120,297		$	125,187		$	138,992		$	117,288		$	114,113		$	125,426		$	112,809
Commercial real estate	27,509			27,511			27,106			26,589			26,586			27,180			26,340
Equipment lease financing	6,381			6,772			7,036			7,066			7,200			6,813			7,255
Total commercial	154,187			159,470			173,134			150,943			147,899			159,419			146,404
Consumer	10			11			8			9			11			10			15
Total loans	$	154,197		$	159,481		$	173,142		$	150,952		$	147,910		$	159,429		$	146,419
Total assets	$	177,792		$	183,266		$	199,254		$	172,502		$	167,555		$	183,189		$	164,243
Deposits
Noninterest-bearing demand	$	64,334		$	56,433		$	53,157		$	40,651		$	39,513		$	53,681		$	39,141
Interest-bearing demand	28,793			29,730			27,674			21,101			20,851			26,838			19,487
Money market	36,705			38,015			36,595			28,468			30,264			34,959			28,091
Other	8,928			8,956			9,546			7,868			7,916			8,825			6,676
Total deposits	$	138,760		$	133,134		$	126,972		$	98,088		$	98,544		$	124,303		$	93,395
Performance Ratios
Return on average assets	2.21		%	1.45		%	(0.72)		%	0.87		%	1.54		%	0.91		%	1.49		%
Noninterest income to total revenue	48		%	41		%	41		%	42		%	40		%	43		%	41		%
Efficiency	42		%	38		%	37		%	43		%	45		%	40		%	45		%
Other Information
Consolidated revenue from:
Treasury Management (b)	$	472		$	452		$	469		$	491		$	494		$	1,884		$	1,866
Capital Markets (b)	$	530		$	345		$	388		$	344		$	291		$	1,607		$	1,140
Commercial mortgage banking activities
Commercial mortgage loans held for sale (c)	$	45		$	46		$	42		$	29		$	24		$	162		$	97
Commercial mortgage loan servicing income (d)	82			76			67			69			71			294			261
Commercial mortgage servicing rights valuation, net of economic hedge (e)	14			16			22			20			2			72			19
Total	$	141		$	138		$	131		$	118		$	97		$	528		$	377
MSR asset value (f)	$	569		$	515		$	490		$	477		$	649
Average loans by C&IB business
Corporate Banking	$	76,664		$	81,617		$	91,634		$	78,057		$	75,665		$	81,977		$	74,016
Real Estate	41,427			40,592			42,124			37,368			36,908			40,381			37,149
Business Credit	21,337			21,845			23,943			23,251			22,900			22,589			22,586
Commercial Banking	11,375			11,770			10,708			7,784			7,793			10,415			7,984
Other	3,394			3,657			4,733			4,492			4,644			4,067			4,684
Total average loans	$	154,197		$	159,481		$	173,142		$	150,952		$	147,910		$	159,429		$	146,419
Credit-related statistics
Nonperforming assets (f)	$	827		$	832		$	674		$	508		$	444
Net charge-offs - loans and leases	$	99		$	32		$	99		$	50		$	47		$	280		$	105

(a)See note (a) on page 14.

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

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

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

(e)Amounts are reported in corporate service fees.

(f)Presented as of period end.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 18

Table 20: Asset Management Group (Unaudited) (a)


	Three months ended															Year ended
	December 31			September 30			June 30			March 31			December 31			December 31			December 31
Dollars in millions, except as noted	2020			2020			2020			2020			2019			2020			2019
Income Statement
Net interest income	$	91		$	89		$	89		$	88		$	80		$	357		$	288
Noninterest income	225			221			204			204			272			854			991
Total revenue	316			310			293			292			352			1,211			1,279
Provision for (recapture of) credit losses	(2)			(19)			39			3			1			21			(1)
Noninterest expense	211			211			217			219			232			858			939
Pretax earnings	107			118			37			70			119			332			341
Income taxes	25			27			9			16			28			77			79
Earnings	$	82		$	91		$	28		$	54		$	91		$	255		$	262
Average Balance Sheet
Loans
Consumer
Residential real estate	$	3,326		$	2,976		$	2,636		$	2,385		$	2,193		$	2,832		$	1,923
Other consumer	4,077			4,065			3,975			4,052			4,145			4,042			4,232
Total consumer	7,403			7,041			6,611			6,437			6,338			6,874			6,155
Commercial	774			810			883			856			793			831			759
Total loans	$	8,177		$	7,851		$	7,494		$	7,293		$	7,131		$	7,705		$	6,914
Total assets	$	8,615		$	8,361		$	7,958		$	7,801		$	7,697		$	8,186		$	7,360
Deposits
Noninterest-bearing demand	$	1,689		$	1,692		$	1,421		$	1,468		$	1,407		$	1,568		$	1,360
Interest-bearing demand	8,404			8,101			7,742			6,850			6,846			7,777			4,060
Money market	1,606			1,542			1,597			1,709			1,773			1,613			1,832
Savings	7,388			7,243			7,398			7,197			6,950			7,307			6,216
Other	482			554			722			847			898			650			822
Total deposits	$	19,569		$	19,132		$	18,880		$	18,071		$	17,874		$	18,915		$	14,290
Performance Ratios
Return on average assets	3.78		%	4.32		%	1.41		%	2.81		%	4.69		%	3.12		%	3.56		%
Noninterest income to total revenue	71		%	71		%	70		%	70		%	77		%	71		%	77		%
Efficiency	67		%	68		%	74		%	75		%	66		%	71		%	73		%
Other Information
Nonperforming assets (b)	$	66		$	39		$	38		$	34		$	39
Net charge-offs (recoveries) - loans and leases	$	1		$	1					$	(1)		$	4		$	1		$	5
Client Assets Under Administration (in billions) (b) (c)
Discretionary client assets under management	$	170		$	158		$	151		$	136		$	154
Nondiscretionary client assets under administration	154			142			138			128			143
Total	$	324		$	300		$	289		$	264		$	297
Discretionary client assets under management
Personal	$	108		$	99		$	94		$	84		$	99
Institutional	62			59			57			52			55
Total	$	170		$	158		$	151		$	136		$	154

(a)See note (a) on page 14.

(b)As of period end.

(c)Excludes brokerage account client assets.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 19

Glossary of Terms

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

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

Basel III common equity Tier 1 capital - Common stock plus related surplus, net of treasury stock, plus retained earnings, plus accumulated other comprehensive income for securities currently, and those transferred from, available for sale and pension and other postretirement benefit plans, subject to phase-in limits, less goodwill, net of associated deferred tax liabilities, less other disallowed intangibles, net of deferred tax liabilities and plus/less other adjustments. Significant common stock investments in unconsolidated financial institutions, as well as mortgage servicing rights and deferred tax assets, must then be deducted to the extent such items individually exceed 10%, or in the aggregate exceed 15%, of our adjusted Basel III common equity Tier 1 capital.

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

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

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

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

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

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

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

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

Combined loan-to-value ratio (CLTV) - This is the aggregate principal balance(s) of the mortgages on a property divided by its appraised value or purchase price.

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

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

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

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

Duration of equity - An estimate of the rate sensitivity of our economic value of equity. A negative duration of equity is associated with asset sensitivity (i.e., positioned for rising interest rates), while a positive value implies liability sensitivity (i.e., positioned for declining interest rates). For example, if the duration of equity is -1.5 years, the economic value of equity increases by 1.5% for each 100 basis point increase in interest rates.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 20

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

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

Efficiency - Noninterest expense divided by total revenue.

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

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

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

Futures and forward contracts - Contracts in which the buyer agrees to purchase and the seller agrees to deliver a specific financial instrument at a predetermined price or yield. May be settled either in cash or by delivery of the underlying financial instrument.

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

Impaired loans - Loans are determined to be impaired when, based on current information and events, it is probable that all contractually required payments will not be collected. Impaired loans include commercial nonperforming loans and consumer and commercial TDRs, regardless of nonperforming status. Excluded from impaired loans are nonperforming leases, loans held for sale, loans accounted for under the fair value option, smaller balance homogenous type loans and purchased impaired loans.

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

LIBOR - Acronym for London InterBank Offered Rate. LIBOR is the average interest rate charged when banks in the London wholesale money market (or interbank market) borrow unsecured funds from each other. LIBOR rates are used as a benchmark for interest rates on a global basis. Our product set includes loans priced using LIBOR as a benchmark.

Loan-to-value ratio (LTV) - A calculation of a loan's collateral coverage that is used both in underwriting and assessing credit risk in our lending portfolio. LTV is the sum total of loan obligations secured by collateral divided by the market value of that same collateral. Market values of the collateral is based on an independent valuation of the collateral. For example, a LTV of less than 90% is better secured and has less credit risk than a LTV of greater than or equal to 90%.

Loss given default (LGD) - Assuming a credit obligor enters default status, an estimate of loss, based on collateral type, collateral value, loan exposure, and other factors. LGD is net of recovery, through any means, including but not limited to the liquidation of collateral or deficiency judgments rendered from foreclosure or bankruptcy proceedings.

Nonaccrual loans - Loans for which we do not accrue interest income. Nonaccrual loans include nonperforming loans, in addition to loans accounted for under fair value option and loans accounted for as held for sale for which full collection of contractual principal and/or interest is not probable.

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

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

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


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 21

Notional amount - A number of currency units, shares, or other units specified in a derivative contract.

Off-balance sheet credit exposures - Standby letters of credit, financial guarantees, commitments to extend credit and similar unfunded obligations that are not unilaterally, unconditionally, cancelable at PNC’s option.

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

Options - Contracts that grant the purchaser, for a premium payment, the right, but not the obligation, to either purchase or sell the associated financial instrument at a set price during a specified period or at a specified date in the future.

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

Probability of default (PD) - An estimate of the likelihood that a credit obligor will enter into default status.

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

Recovery - Cash proceeds received on a loan that we had previously charged off. We credit the amount received to the allowance for loan and lease losses.

Reasonable and supportable forecast period (RSFP) - In context of CECL, the period for which forecasts and projections of macroeconomic variables have been determined to be reasonable and supportable, and are used as inputs for ACL measurement.

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

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

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

Taxable-equivalent interest income - The interest income earned on certain assets that is completely or partially exempt from federal income tax. These tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of yields and margins for all interest-earning assets, we use interest income on a taxable-equivalent basis in calculating average yields and net interest margins by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on other taxable investments. This adjustment is not permitted under GAAP on the Consolidated Income Statement.

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

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

Dates Referenced Herein and Documents Incorporated by Reference

This ‘8-K’ Filing	Date	Other Filings

Filed on / For Period end:	1/15/21	8-K
	12/31/20	10-K, 13F-HR
	11/16/20	8-K
	10/1/20	3, 4, 8-K
	9/30/20	10-Q, 13F-HR
	7/1/20	4
	6/30/20	10-Q, 13F-HR, 13F-HR/A
	5/18/20	4
	5/15/20	4, 8-K
	4/1/20	4
	3/31/20	10-Q, 13F-HR
	1/1/20
	12/31/19	10-K, 13F-HR, 4, 5
	10/1/19	4
		List all Filings

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PNC Financial Services Group, Inc. – ‘8-K’ for 1/15/21 – ‘EX-99.1’

On: Friday, 1/15/21, at 1:20pm ET · For: 1/15/21 · Accession #: 713676-21-16 · File #: 1-09718

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