PITTSBURGH, April 15, 2026 /PRNewswire/ -- The PNC Financial Services Group, Inc. (NYSE:PNC) today reported:
For the quarter
In millions, except per share data and as noted
1Q26
4Q25
1Q25
First Quarter Highlights
Financial Results
Comparisons reflect 1Q26 vs. 4Q25
Net interest income (NII)
$ 3,961
$ 3,731
$ 3,476
Income Statement
First quarter results include FirstBank operations since acquisition close on Jan. 5th 2026
Adjusted EPS was $4.32, excluding FirstBank integration costs of $98 million, pre-tax
Revenue increased 2%
NII increased 6%; NIM of 2.95% increased 11 bps
Fee income decreased 2%
Other noninterest income of $125 million
Noninterest expense increased 5% primarily due to FirstBank operating and integration expenses. Excludingintegration expenses, noninterest expense increased 2%
Balance Sheet
Average loans increased $23.0 billion, or 7%, driven by loans acquired from FirstBank and commercial loan growth
Total loans increased $29.4 billion, or 9%
Average deposits grew $18.8 billion, or 4%, driven by FirstBank deposits
Net loan charge-offs were $253 million and included $45 million of acquired net loan charge-offs related to FirstBank loans.
Maintained strong capital position
CET1 capital ratio of 10.1%
Returned $1.4 billion to shareholders through $0.7 billion of share repurchases and $0.7 billion of common stock dividends
Fee income (non-GAAP)
2,079
2,123
1,839
Other noninterest income
125
217
137
Noninterest income
2,204
2,340
1,976
Revenue
6,165
6,071
5,452
Noninterest expense
3,768
3,603
3,387
Pretax, pre-provision earnings (PPNR) (non-GAAP)
2,397
2,468
2,065
Integration costs
98
—
—
PPNR excluding integration costs (non-GAAP)
2,495
2,468
2,065
Provision for credit losses
210
139
219
Net income
1,772
2,033
1,499
Per Common Share
Diluted earnings per share (EPS)
$ 4.13
$ 4.88
$ 3.51
Diluted EPS - as adjusted (non-GAAP)
4.32
4.88
3.51
Average diluted common shares outstanding
405
394
398
Book value
143.65
140.44
127.98
Tangible book value (TBV) (non-GAAP)
109.42
112.51
100.40
Balance Sheet & Credit Quality
Average loans In billions
$ 350.9
$ 327.9
$ 316.6
Average deposits In billions
458.4
439.5
420.6
Net loan charge-offs
253
162
205
Acquired net loan charge-offs
45
—
—
Non-acquired net loan charge-offs
208
162
205
Allowance for credit losses to total loans
1.52 %
1.58 %
1.64 %
Selected Ratios
Return on average common shareholders' equity
11.92 %
14.33 %
11.60 %
Return on average assets
1.19
1.40
1.09
Net interest margin (NIM) (non-GAAP)
2.95
2.84
2.78
Noninterest income to total revenue
36
39
36
Efficiency
61
59
62
Efficiency excluding integration costs (non-GAAP)
60
59
62
Common equity tier 1 (CET1) capital ratio
10.1
10.6
10.6
See non-GAAP financial measures in the Consolidated Financial Highlights accompanying this release. Totals may not sum due to rounding.
From Bill Demchak, PNC Chairman and Chief Executive Officer:"2026 is off to a great start for PNC. During the first quarter we successfully closed the FirstBank acquisition, and in addition, generated strong legacy loan growth. Client activity remains robust across all our geographies, and importantly, we're well positioned to continue our strong momentum."
Acquisition of FirstBank
On January 5, 2026, PNC completed its acquisition of FirstBank Holding Company, including its banking subsidiary FirstBank. At close, FirstBank had $26 billion of assets, $16 billion of loans and $23 billion of deposits. Effective January 5, 2026, FirstBank's financial results are included in PNC's consolidated operations and, during the first quarter of 2026, PNC incurred $98 million, pre-tax, of the expected total integration costs of $325 million.
Income Statement Highlights
First quarter 2026 compared with fourth quarter 2025
Total revenue of $6.2 billion increased $94 million, or 2%, driven by higher net interest income.
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.
Fee income of $2.1 billion decreased $44 million, or 2%, primarily due to a $31 million decline in mortgage servicing rights valuation, net of economic hedge, driven by rate volatility.
Other noninterest income of $125 million included negative $32 million of Visa derivative adjustments, unfavorable valuation adjustments of private equity investments and $28 million of net securities gains.
Noninterest expense of $3.8 billion increased $165 million, or 5%, driven by FirstBank operating and integration expenses, partially offset by seasonally lower marketing spend.
Excluding integration expenses of $97 million, noninterest expense increased 2%.
Provision for credit losses was $210 million in the first quarter and reflected portfolio activity, including loan growth and the addition of FirstBank, as well as updates to macroeconomic factors.
The effective tax rate was 19.0% for the first quarter and 12.7% for the fourth quarter. The fourth quarter included the favorable resolution of several tax matters.
Balance Sheet Highlights
First quarter 2026 compared with fourth quarter 2025 or March 31, 2026 compared with December 31, 2025
Average loans of $350.9 billion increased $23.0 billion, or 7%. Average commercial loans increased $16.8 billion, or 7%, due to growth within the commercial and industrial portfolio, reflecting new production and increased utilization, as well as the addition of FirstBank loans. Average consumer loans increased $6.1 billion, or 6%, driven by the benefit of acquired FirstBank residential mortgage loans.
Loans at March 31, 2026 of $360.9 billion increased $29.4 billion, or 9%, from December 31, 2025, reflecting strong commercial loan growth and $15.5 billion of FirstBank loans.
Credit quality performance:
Delinquencies of $1.6 billion increased $115 million, or 8%, primarily due to the addition of FirstBank commercial and consumer loans.
Total nonperforming loans of $2.2 billion were stable.
Net loan charge-offs of $253 million increased $91 million and included $45 million of acquired net loan charge-offs related to purchase accounting treatment for certain FirstBank loans. Excluding FirstBank acquired net loan charge-offs, net loan charge-offs were $208 million, an increase of $46 million driven by higher commercial net loan charge-offs.
The allowance for credit losses of $5.5 billion increased $0.3 billion. The allowance for credit losses to total loans was 1.52% at March 31, 2026 and 1.58% at December 31, 2025.
Average investment securities of $144.5 billion increased $2.3 billion, or 2%, reflecting higher residential mortgage-backed securities.
Average deposits of $458.4 billion increased $18.8 billion, or 4%, driven by the addition of FirstBank deposits, partially offset by lower brokered time deposits.
PNC maintained a strong capital and liquidity position:
On April 2, 2026, the PNC board of directors declared a quarterly cash dividend on common stock of $1.70 per share to be paid on May 5, 2026 to shareholders of record at the close of business April 14, 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.
Share repurchase activity in the second quarter of 2026 is expected to approximate $600 million to $700 million.
The Basel III common equity tier 1 capital ratio was an estimated 10.1% at March 31, 2026 and was 10.6% at December 31, 2025.
PNC's average LCR for the three months ended March 31, 2026 was 107%, exceeding the regulatory minimum requirement throughout the quarter.
Earnings Summary
In millions, except per share data
1Q26
4Q25
1Q25
Net income
$ 1,772
$ 2,033
$ 1,499
Net income attributable to diluted common shareholders
$ 1,675
$ 1,922
$ 1,399
Net income attributable to diluted common shareholders - as adjusted (non-GAAP)
$ 1,752
$ 1,922
$ 1,399
Diluted earnings per common share
$ 4.13
$ 4.88
$ 3.51
Diluted earnings per common share - as adjusted (non-GAAP)
$ 4.32
$ 4.88
$ 3.51
Average diluted common shares outstanding
405
394
398
Cash dividends declared per common share
$ 1.70
$ 1.70
$ 1.60
See non-GAAP financial measures in the Consolidated Financial Highlights accompanying this release.
The Consolidated Financial Highlights accompanying this news release include additional information regarding reconciliations of non-GAAP financial measures to reported (GAAP) amounts. This information supplements results as reported in accordance with GAAP and should not be viewed in isolation from, or as a substitute for, GAAP results. Information in this news release, including the financial tables, is unaudited.
CONSOLIDATED REVENUE REVIEW
Revenue
Change
Change
1Q26 vs
1Q26 vs
In millions
1Q26
4Q25
1Q25
4Q25
1Q25
Net interest income
$ 3,961
$ 3,731
$ 3,476
6 %
14 %
Noninterest income
2,204
2,340
1,976
(6) %
12 %
Total revenue
$ 6,165
$ 6,071
$ 5,452
2 %
13 %
Total revenue for the first quarter of 2026 increased $94 million compared to the fourth quarter of 2025 driven by increased net interest income. Compared to the first quarter of 2025, total revenue increased $713 million as a result of growth in both net interest income and noninterest income.
Net interest income of $4.0 billion increased $230 million from the fourth quarter of 2025 and $485 million from the first quarter of 2025. In both comparisons, the increase reflected the benefit of FirstBank, lower funding costs and commercial loan growth.
Net interest margin was 2.95% in the first quarter of 2026, increasing 11 basis points from the fourth quarter of 2025, reflecting an 18 basis point decline in the rate paid on interest-bearing deposits. Compared to the first quarter of 2025 net interest margin expanded 17 basis points.
Noninterest Income
Change
Change
1Q26 vs
1Q26 vs
In millions
1Q26
4Q25
1Q25
4Q25
1Q25
Asset management and brokerage
$ 420
$ 411
$ 391
2 %
7 %
Capital markets and advisory
463
489
306
(5) %
51 %
Card and cash management
738
733
692
1 %
7 %
Lending and deposit services
340
342
316
(1) %
8 %
Residential and commercial mortgage
118
148
134
(20) %
(12) %
Fee income (non-GAAP)
2,079
2,123
1,839
(2) %
13 %
Other
125
217
137
(42) %
(9) %
Total noninterest income
$ 2,204
$ 2,340
$ 1,976
(6) %
12 %
Noninterest income for the first quarter of 2026 decreased $136 million, or 6%, compared with the fourth quarter of 2025 and increased $228 million, or 12%, from the first quarter of 2025.
In comparison to the fourth quarter of 2025, fee income decreased $44 million, or 2%. Asset management and brokerage fees increased $9 million as a result of higher average equity markets and increased client activity. Capital markets and advisory revenue decreased $26 million as both higher underwriting and trading revenue were more than offset by lower merger and acquisition advisory fees. Card and cash management revenue increased $5 million and included higher treasury management product revenue. Residential and commercial mortgage revenue decreased $30 million due to a $31 million decline in mortgage servicing rights valuation, net of economic hedge driven by rate volatility.
Compared to the first quarter of 2025, fee income increased $240 million, or 13%, driven by broad-based growth across business lines and fee income categories.
Other noninterest income of $125 million in the first quarter of 2026 included negative $32 million of Visa derivative adjustments, unfavorable valuation adjustments of private equity investments and $28 million of net securities gains.
CONSOLIDATED EXPENSE REVIEW
Noninterest Expense
Change
Change
1Q26 vs
1Q26 vs
In millions
1Q26
4Q25
1Q25
4Q25
1Q25
Personnel
$ 2,106
$ 2,033
$ 1,890
4 %
11 %
Occupancy
262
247
245
6 %
7 %
Equipment
415
412
384
1 %
8 %
Marketing
87
101
85
(14) %
2 %
Other
898
810
783
11 %
15 %
Total noninterest expense
$ 3,768
$ 3,603
$ 3,387
5 %
11 %
Integration expense
97
—
—
Noninterest expense, excluding integration expense (non-GAAP)
$ 3,671
$ 3,603
$ 3,387
2 %
8 %
Noninterest expense for the first quarter of 2026 increased $165 million compared to the fourth quarter of 2025 and $381 million compared with the first quarter 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 the result of increased business activity and continued investments to support business growth.
The effective tax rate was 19.0% for the first quarter of 2026, 12.7% for the fourth quarter of 2025 and 18.8% for the first quarter of 2025. The fourth quarter of 2025 included the favorable resolution of several tax matters.
CONSOLIDATED BALANCE SHEET REVIEW
Loans
Change
Change
1Q26 vs
1Q26 vs
In billions
1Q26
4Q25
1Q25
4Q25
1Q25
Average
Commercial and industrial
$ 211.4
$ 198.7
$ 184.0
6 %
15 %
Commercial real estate
34.4
30.2
33.1
14 %
4 %
Commercial
$ 245.7
$ 228.9
$ 217.1
7 %
13 %
Consumer
105.2
99.0
99.5
6 %
6 %
Average loans
$ 350.9
$ 327.9
$ 316.6
7 %
11 %
Quarter end
Commercial and industrial
$ 221.2
$ 202.9
$ 187.3
9 %
18 %
Commercial real estate
34.8
29.6
32.3
18 %
8 %
Commercial
$ 256.0
$ 232.5
$ 219.6
10 %
17 %
Consumer
105.0
99.0
99.3
6 %
6 %
Total loans
$ 360.9
$ 331.5
$ 318.9
9 %
13 %
Totals may not sum due to rounding
Average loans for the first quarter of 2026 increased $23.0 billion compared to the fourth quarter of 2025 and $34.3 billion compared to the first quarter of 2025.
Average commercial loans increased $16.8 billion and $28.6 billion compared to the fourth quarter of 2025 and the first quarter of 2025, respectively. In both comparisons, growth within the commercial and industrial portfolio was driven by strong new production, increased utilization and the addition of FirstBank loans. The increase in commercial real estate loans was attributable to acquired FirstBank loans.
Average consumer loans increased $6.1 billion and $5.6 billion compared to the fourth quarter of 2025 and the first quarter of 2025 driven by the benefit of acquired FirstBank residential mortgage loans.
Loans at March 31, 2026 increased $29.4 billion and $42.1 billion from December 31, 2025 and March 31, 2025, respectively. In both comparisons, the increase included $15.5 billion of FirstBank loans, comprised of $3.2 billion of commercial and industrial loans, $5.1 billion of commercial real estate loans and $7.2 billion of consumer loans. Excluding the impact of the FirstBank acquisition, growth in both comparisons was driven by strong activity across the legacy commercial and industrial portfolio. Compared to December 31, 2025, the increase was also attributable to modest growth in the legacy PNC commercial real estate portfolio.
Average Investment Securities
Change
Change
1Q26 vs
1Q26 vs
In billions
1Q26
4Q25
1Q25
4Q25
1Q25
Available for sale
$ 71.6
$ 69.9
$ 65.7
2 %
9 %
Held to maturity
72.9
72.3
76.5
1 %
(5) %
Total
$ 144.5
$ 142.2
$ 142.2
2 %
2 %
Average investment securities of $144.5 billion in the first quarter of 2026 increased $2.3 billion compared to both the fourth quarter of 2025 and the first quarter of 2025. In both comparisons, the increase reflected higher residential mortgage-backed securities.
The duration of the investment securities portfolio was 3.6 years as of March 31, 2026, 3.5 years as of December 31, 2025 and 3.4 years as of March 31, 2025. Net unrealized losses on available-for-sale securities were $2.1 billion at March 31, 2026, $1.8 billion at December 31, 2025 and $2.7 billion at March 31, 2025.
Average Deposits
Change
Change
1Q26 vs
1Q26 vs
In billions
1Q26
4Q25
