EX-99.1 2 q32020financialsupplement.htm EXHIBIT 99.1
Exhibit 99.1
THE PNC FINANCIAL SERVICES GROUP, INC.
FINANCIAL SUPPLEMENT
THIRD QUARTER 2020
(Unaudited)

THE PNC FINANCIAL SERVICES GROUP, INC.
FINANCIAL SUPPLEMENT
THIRD 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 October 14, 2020. 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 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.

THE PNC FINANCIAL SERVICES GROUP, INC. |
Cross Reference Index to Third 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 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 |  |  | Nine months ended
| September 30 |  | June 30 |  | March 31 |  | December 31 |  | September 30 |  |  | September 30 |  | September 30
In millions, except per share data | 2020 |  | 2020 |  | 2020 |  | 2019 |  | 2019 |  |  | 2020 |  | 2019
Interest Income |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans | $ | 2,116 |  |  | $ | 2,257 |  |  | $ | 2,480 |  |  | $ | 2,573 |  |  | $ | 2,678 |  |  |  | $ | 6,853 |  |  | $ | 7,952 |
Investment securities | 490 |  |  | 527 |  |  | 582 |  |  | 560 |  |  | 617 |  |  |  | 1,599 |  |  | 1,866 |
Other | 70 |  |  | 71 |  |  | 138 |  |  | 201 |  |  | 208 |  |  |  | 279 |  |  | 610 |
Total interest income | 2,676 |  |  | 2,855 |  |  | 3,200 |  |  | 3,334 |  |  | 3,503 |  |  |  | 8,731 |  |  | 10,428 |
Interest Expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits | 74 |  |  | 141 |  |  | 375 |  |  | 468 |  |  | 531 |  |  |  | 590 |  |  | 1,518 |
Borrowed funds | 118 |  |  | 187 |  |  | 314 |  |  | 378 |  |  | 468 |  |  |  | 619 |  |  | 1,433 |
Total interest expense | 192 |  |  | 328 |  |  | 689 |  |  | 846 |  |  | 999 |  |  |  | 1,209 |  |  | 2,951 |
Net interest income | 2,484 |  |  | 2,527 |  |  | 2,511 |  |  | 2,488 |  |  | 2,504 |  |  |  | 7,522 |  |  | 7,477 |
Noninterest Income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Asset management | 215 |  |  | 199 |  |  | 201 |  |  | 216 |  |  | 213 |  |  |  | 615 |  |  | 646 |
Consumer services | 390 |  |  | 330 |  |  | 377 |  |  | 390 |  |  | 402 |  |  |  | 1,097 |  |  | 1,165 |
Corporate services | 479 |  |  | 512 |  |  | 526 |  |  | 499 |  |  | 469 |  |  |  | 1,517 |  |  | 1,415 |
Residential mortgage | 137 |  |  | 158 |  |  | 210 |  |  | 87 |  |  | 134 |  |  |  | 505 |  |  | 281 |
Service charges on deposits | 119 |  |  | 79 |  |  | 168 |  |  | 185 |  |  | 178 |  |  |  | 366 |  |  | 517 |
Other (a) | 457 |  |  | 271 |  |  | 343 |  |  | 456 |  |  | 342 |  |  |  | 1,071 |  |  | 1,017 |
Total noninterest income | 1,797 |  |  | 1,549 |  |  | 1,825 |  |  | 1,833 |  |  | 1,738 |  |  |  | 5,171 |  |  | 5,041 |
Total revenue | 4,281 |  |  | 4,076 |  |  | 4,336 |  |  | 4,321 |  |  | 4,242 |  |  |  | 12,693 |  |  | 12,518 |
Provision For Credit Losses | 52 |  |  | 2,463 |  |  | 914 |  |  | 221 |  |  | 183 |  |  |  | 3,429 |  |  | 552 |
Noninterest Expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Personnel | 1,410 |  |  | 1,373 |  |  | 1,369 |  |  | 1,468 |  |  | 1,400 |  |  |  | 4,152 |  |  | 4,179 |
Occupancy | 205 |  |  | 199 |  |  | 207 |  |  | 201 |  |  | 206 |  |  |  | 611 |  |  | 633 |
Equipment | 292 |  |  | 301 |  |  | 287 |  |  | 348 |  |  | 291 |  |  |  | 880 |  |  | 862 |
Marketing | 67 |  |  | 47 |  |  | 58 |  |  | 77 |  |  | 76 |  |  |  | 172 |  |  | 224 |
Other | 557 |  |  | 595 |  |  | 622 |  |  | 668 |  |  | 650 |  |  |  | 1,774 |  |  | 1,914 |
Total noninterest expense | 2,531 |  |  | 2,515 |  |  | 2,543 |  |  | 2,762 |  |  | 2,623 |  |  |  | 7,589 |  |  | 7,812 |
Income (loss) from continuing operations before income taxes and noncontrolling interests | 1,698 |  |  | (902 | ) |  | 879 |  |  | 1,338 |  |  | 1,436 |  |  |  | 1,675 |  |  | 4,154 |
Income taxes (benefit) from continuing operations | 166 |  |  | (158 | ) |  | 120 |  |  | 195 |  |  | 255 |  |  |  | 128 |  |  | 706 |
Net income (loss) from continuing operations | 1,532 |  |  | (744 | ) |  | 759 |  |  | 1,143 |  |  | 1,181 |  |  |  | 1,547 |  |  | 3,448 |
Income from discontinued operations before taxes |  |  |  | 5,596 |  |  | 181 |  |  | 288 |  |  | 251 |  |  |  | 5,777 |  |  | 700 |
Income taxes from discontinued operations |  |  |  | 1,197 |  |  | 25 |  |  | 50 |  |  | 40 |  |  |  | 1,222 |  |  | 111 |
Net income from discontinued operations |  |  |  | 4,399 |  |  | 156 |  |  | 238 |  |  | 211 |  |  |  | 4,555 |  |  | 589 |
Net income | 1,532 |  |  | 3,655 |  |  | 915 |  |  | 1,381 |  |  | 1,392 |  |  |  | 6,102 |  |  | 4,037 |
Less: Net income attributable to noncontrolling interests | 13 |  |  | 7 |  |  | 7 |  |  | 14 |  |  | 13 |  |  |  | 27 |  |  | 35 |
Preferred stock dividends (b) | 63 |  |  | 55 |  |  | 63 |  |  | 55 |  |  | 63 |  |  |  | 181 |  |  | 181 |
Preferred stock discount accretion and redemptions | 1 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | 1 |  |  |  | 3 |  |  | 3 |
Net income attributable to common shareholders | $ | 1,455 |  |  | $ | 3,592 |  |  | $ | 844 |  |  | $ | 1,311 |  |  | $ | 1,315 |  |  |  | $ | 5,891 |  |  | $ | 3,818 |
Earnings Per Common Share |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic earnings (loss) from continuing operations | $ | 3.40 |  |  | $ | (1.90 | ) |  | $ | 1.59 |  |  | $ | 2.44 |  |  | $ | 2.47 |  |  |  | $ | 3.11 |  |  | $ | 7.15 |
Basic earnings from discontinued operations |  |  |  | 10.28 |  |  | .37 |  |  | .54 |  |  | .48 |  |  |  | 10.61 |  |  | 1.30 |
Total basic earnings | $ | 3.40 |  |  | $ | 8.40 |  |  | $ | 1.96 |  |  | $ | 2.98 |  |  | $ | 2.95 |  |  |  | $ | 13.73 |  |  | $ | 8.45 |
Diluted earnings (loss) from continuing operations | $ | 3.39 |  |  | $ | (1.90 | ) |  | $ | 1.59 |  |  | $ | 2.43 |  |  | $ | 2.47 |  |  |  | $ | 3.11 |  |  | $ | 7.13 |
Diluted earnings from discontinued operations |  |  |  | 10.28 |  |  | .36 |  |  | .54 |  |  | .47 |  |  |  | 10.59 |  |  | 1.29 |
Total diluted earnings | $ | 3.39 |  |  | $ | 8.40 |  |  | $ | 1.95 |  |  | $ | 2.97 |  |  | $ | 2.94 |  |  |  | $ | 13.70 |  |  | $ | 8.42 |
Average Common Shares Outstanding |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic | 426 |  |  | 426 |  |  | 429 |  |  | 437 |  |  | 444 |  |  |  | 427 |  |  | 450 |
Diluted | 426 |  |  | 426 |  |  | 430 |  |  | 438 |  |  | 445 |  |  |  | 428 |  |  | 451 |
Efficiency | 59 | % |  | 62 | % |  | 59 | % |  | 64 | % |  | 62 | % |  |  | 60 | % |  | 62 | %
Noninterest income to total revenue | 42 | % |  | 38 | % |  | 42 | % |  | 42 | % |  | 41 | % |  |  | 41 | % |  | 40 | %
Effective tax rate from continuing operations (c) | 9.8 | % |  | 17.5 | % |  | 13.7 | % |  | 14.6 | % |  | 17.8 | % |  |  | 7.6 | % |  | 17.0 | %

(a) | Includes net gains on sales of securities of $32 million, $40 million, $182 million, $12 million, and $3 million for the quarters ended September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019 and September 30, 2019, respectively, and $254 million and $36 million for the nine months ended September 30, 2020 and September 30, 2019, 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)

| September 30 |  | June 30 |  | March 31 |  | December 31 |  | September 30
In millions, except par value | 2020 |  | 2020 |  | 2020 |  | 2019 |  | 2019
Assets |  |  |  |  |  |  |  |  |
Cash and due from banks | $ | 6,629 |  |  | $ | 6,338 |  |  | $ | 7,493 |  |  | $ | 5,061 |  |  | $ | 5,671 |
Interest-earning deposits with banks (a) | 70,959 |  |  | 50,233 |  |  | 19,986 |  |  | 23,413 |  |  | 19,036 |
Loans held for sale (b) | 1,787 |  |  | 1,443 |  |  | 1,693 |  |  | 1,083 |  |  | 1,872 |
Asset held for sale (c) |  |  |  |  |  | 8,511 |  |  | 8,558 |  |  | 8,321 |
Investment securities – available for sale | 89,747 |  |  | 97,052 |  |  | 89,077 |  |  | 69,163 |  |  | 69,057 |
Investment securities – held to maturity | 1,438 |  |  | 1,441 |  |  | 1,469 |  |  | 17,661 |  |  | 18,826 |
Loans (b) | 249,279 |  |  | 258,236 |  |  | 264,643 |  |  | 239,843 |  |  | 237,377 |
Allowance for loan and lease losses (d) | (5,751 | ) |  | (5,928 | ) |  | (3,944 | ) |  | (2,742 | ) |  | (2,738 | )
Net loans | 243,528 |  |  | 252,308 |  |  | 260,699 |  |  | 237,101 |  |  | 234,639 |
Equity investments | 4,938 |  |  | 4,943 |  |  | 4,694 |  |  | 5,176 |  |  | 5,004 |
Mortgage servicing rights | 1,113 |  |  | 1,067 |  |  | 1,082 |  |  | 1,644 |  |  | 1,483 |
Goodwill | 9,233 |  |  | 9,233 |  |  | 9,233 |  |  | 9,233 |  |  | 9,233 |
Other (b) | 32,445 |  |  | 34,920 |  |  | 41,556 |  |  | 32,202 |  |  | 35,774 |
Total assets | $ | 461,817 |  |  | $ | 458,978 |  |  | $ | 445,493 |  |  | $ | 410,295 |  |  | $ | 408,916 |
Liabilities |  |  |  |  |  |  |  |  |
Deposits |  |  |  |  |  |  |  |  |
Noninterest-bearing | $ | 107,281 |  |  | $ | 99,458 |  |  | $ | 81,614 |  |  | $ | 72,779 |  |  | $ | 74,077 |
Interest-bearing | 247,798 |  |  | 246,539 |  |  | 223,590 |  |  | 215,761 |  |  | 211,506 |
Total deposits | 355,079 |  |  | 345,997 |  |  | 305,204 |  |  | 288,540 |  |  | 285,583 |
Borrowed funds |  |  |  |  |  |  |  |  |
Federal Home Loan Bank borrowings | 5,500 |  |  | 8,500 |  |  | 23,491 |  |  | 16,341 |  |  | 21,901 |
Bank notes and senior debt | 26,839 |  |  | 27,704 |  |  | 31,438 |  |  | 29,010 |  |  | 27,148 |
Subordinated debt | 6,465 |  |  | 6,500 |  |  | 6,475 |  |  | 6,134 |  |  | 5,473 |
Other (b) | 3,306 |  |  | 4,322 |  |  | 11,995 |  |  | 8,778 |  |  | 6,832 |
Total borrowed funds | 42,110 |  |  | 47,026 |  |  | 73,399 |  |  | 60,263 |  |  | 61,354 |
Allowance for unfunded lending related commitments (d) | 689 |  |  | 662 |  |  | 450 |  |  | 318 |  |  | 304 |
Accrued expenses and other liabilities | 10,629 |  |  | 12,345 |  |  | 17,150 |  |  | 11,831 |  |  | 12,220 |
Total liabilities | 408,507 |  |  | 406,030 |  |  | 396,203 |  |  | 360,952 |  |  | 359,461 |
Equity |  |  |  |  |  |  |  |  |
Preferred stock (e) |  |  |  |  |  |  |  |  |
Common stock - $5 par value |  |  |  |  |  |  |  |  |
Authorized 800 shares, issued 542 shares | 2,712 |  |  | 2,712 |  |  | 2,712 |  |  | 2,712 |  |  | 2,711 |
Capital surplus | 15,836 |  |  | 16,284 |  |  | 16,288 |  |  | 16,369 |  |  | 16,297 |
Retained earnings | 45,947 |  |  | 44,986 |  |  | 41,885 |  |  | 42,215 |  |  | 41,413 |
Accumulated other comprehensive income | 2,997 |  |  | 3,069 |  |  | 2,518 |  |  | 799 |  |  | 837 |
Common stock held in treasury at cost:118, 117, 118, 109 and 103 shares | (14,216 | ) |  | (14,128 | ) |  | (14,140 | ) |  | (12,781 | ) |  | (11,838 | )
Total shareholders’ equity | 53,276 |  |  | 52,923 |  |  | 49,263 |  |  | 49,314 |  |  | 49,420 |
Noncontrolling interests | 34 |  |  | 25 |  |  | 27 |  |  | 29 |  |  | 35 |
Total equity | 53,310 |  |  | 52,948 |  |  | 49,290 |  |  | 49,343 |  |  | 49,455 |
Total liabilities and equity | $ | 461,817 |  |  | $ | 458,978 |  |  | $ | 445,493 |  |  | $ | 410,295 |  |  | $ | 408,916 |

(a) | Amounts include balances held with the Federal Reserve Bank of Cleveland of $70.6 billion, $50.0 billion, $19.6 billion, $23.2 billion and $18.8 billion as of September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019 and September 30, 2019, respectively.

(b) | Amounts include assets and liabilities for which PNC has elected the fair value option. Our second quarter 2020 Form 10-Q included, and our third quarter 2020 Form 10-Q 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 ASC 205-20, Presentation of Financial Statements - Discontinued Operations. Our second quarter 2020 Form 10-Q included additional information related to the Blackrock divestiture.

(d) | Amounts as of September 30, 2020 and 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 10-K and our first and second quarter 2020 Form 10-Qs included, and our third quarter 2020 Form 10-Q will include, additional information related to our adoption of this standard.

(e) | Par value less than $.5 million at each date.

THE PNC FINANCIAL SERVICES GROUP, INC. | Page 3

Table 3: Average Consolidated Balance Sheet (Unaudited) (a) |  |  |  |  |
| Three months ended |  |  | Nine months ended
| September 30 |  | June 30 |  | March 31 |  | December 31 |  | September 30 |  |  | September 30 |  | September 30
In millions | 2020 |  | 2020 |  | 2020 |  | 2019 |  | 2019 |  |  | 2020 |  | 2019
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-earning assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment securities |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency | $ | 52,215 |  |  | $ | 52,500 |  |  | $ | 49,636 |  |  | $ | 33,937 |  |  | $ | 32,926 |  |  |  | $ | 51,453 |  |  | $ | 30,714 |
Non-agency | 1,437 |  |  | 1,529 |  |  | 1,617 |  |  | 1,582 |  |  | 1,716 |  |  |  | 1,527 |  |  | 1,802 |
Commercial mortgage-backed | 6,927 |  |  | 7,232 |  |  | 6,734 |  |  | 6,054 |  |  | 5,728 |  |  |  | 6,964 |  |  | 5,549 |
Asset-backed | 5,033 |  |  | 5,309 |  |  | 5,003 |  |  | 5,059 |  |  | 5,208 |  |  |  | 5,115 |  |  | 5,247 |
U.S. Treasury and government agencies | 18,724 |  |  | 15,457 |  |  | 15,938 |  |  | 15,966 |  |  | 17,573 |  |  |  | 16,714 |  |  | 18,207 |
Other | 4,723 |  |  | 4,952 |  |  | 4,024 |  |  | 2,849 |  |  | 3,053 |  |  |  | 4,567 |  |  | 3,316 |
Total securities available for sale | 89,059 |  |  | 86,979 |  |  | 82,952 |  |  | 65,447 |  |  | 66,204 |  |  |  | 86,340 |  |  | 64,835 |
Securities held to maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed | — |  |  | — |  |  | — |  |  | 14,943 |  |  | 15,768 |  |  |  | — |  |  | 15,582 |
Commercial mortgage-backed | — |  |  | — |  |  | — |  |  | 498 |  |  | 544 |  |  |  | — |  |  | 571 |
Asset-backed | — |  |  | 22 |  |  | 51 |  |  | 54 |  |  | 79 |  |  |  | 24 |  |  | 143 |
U.S. Treasury and government agencies | 788 |  |  | 783 |  |  | 779 |  |  | 774 |  |  | 769 |  |  |  | 783 |  |  | 765 |
Other | 655 |  |  | 646 |  |  | 640 |  |  | 1,794 |  |  | 1,802 |  |  |  | 648 |  |  | 1,823 |
Total securities held to maturity | 1,443 |  |  | 1,451 |  |  | 1,470 |  |  | 18,063 |  |  | 18,962 |  |  |  | 1,455 |  |  | 18,884 |
Total investment securities | 90,502 |  |  | 88,430 |  |  | 84,422 |  |  | 83,510 |  |  | 85,166 |  |  |  | 87,795 |  |  | 83,719 |
Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial | 139,795 |  |  | 153,595 |  |  | 128,723 |  |  | 124,876 |  |  | 125,356 |  |  |  | 140,701 |  |  | 123,069 |
Commercial real estate | 29,081 |  |  | 28,707 |  |  | 28,275 |  |  | 28,670 |  |  | 28,855 |  |  |  | 28,689 |  |  | 28,477 |
Equipment lease financing | 6,771 |  |  | 7,035 |  |  | 7,066 |  |  | 7,199 |  |  | 7,272 |  |  |  | 6,958 |  |  | 7,273 |
Consumer | 54,692 |  |  | 56,485 |  |  | 57,680 |  |  | 56,765 |  |  | 55,702 |  |  |  | 56,279 |  |  | 55,303 |
Residential real estate | 22,753 |  |  | 22,292 |  |  | 21,828 |  |  | 21,341 |  |  | 20,497 |  |  |  | 22,292 |  |  | 19,602 |
Total loans | 253,092 |  |  | 268,114 |  |  | 243,572 |  |  | 238,851 |  |  | 237,682 |  |  |  | 254,919 |  |  | 233,724 |
Interest-earning deposits with banks (b) | 60,327 |  |  | 34,600 |  |  | 17,569 |  |  | 23,316 |  |  | 15,632 |  |  |  | 37,582 |  |  | 14,708 |
Other interest-earning assets | 9,752 |  |  | 10,867 |  |  | 9,468 |  |  | 11,371 |  |  | 14,094 |  |  |  | 10,028 |  |  | 12,780 |
Total interest-earning assets | 413,673 |  |  | 402,011 |  |  | 355,031 |  |  | 357,048 |  |  | 352,574 |  |  |  | 390,324 |  |  | 344,931 |
Noninterest-earning assets | 48,466 |  |  | 55,302 |  |  | 57,405 |  |  | 54,371 |  |  | 54,135 |  |  |  | 53,705 |  |  | 51,668 |
Total assets | $ | 462,139 |  |  | $ | 457,313 |  |  | $ | 412,436 |  |  | $ | 411,419 |  |  | $ | 406,709 |  |  |  | $ | 444,029 |  |  | $ | 396,599 |
Liabilities and Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing deposits |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market | $ | 63,598 |  |  | $ | 61,346 |  |  | $ | 53,287 |  |  | $ | 56,209 |  |  | $ | 56,271 |  |  |  | $ | 59,426 |  |  | $ | 55,268 |
Demand | 87,226 |  |  | 82,881 |  |  | 70,931 |  |  | 69,496 |  |  | 65,444 |  |  |  | 80,371 |  |  | 64,459 |
Savings | 77,479 |  |  | 75,345 |  |  | 69,977 |  |  | 66,827 |  |  | 64,054 |  |  |  | 74,279 |  |  | 61,627 |
Time deposits | 20,248 |  |  | 21,873 |  |  | 21,141 |  |  | 21,600 |  |  | 21,173 |  |  |  | 21,084 |  |  | 20,017 |
Total interest-bearing deposits | 248,551 |  |  | 241,445 |  |  | 215,336 |  |  | 214,132 |  |  | 206,942 |  |  |  | 235,160 |  |  | 201,371 |
Borrowed funds |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal Home Loan Bank borrowings | 7,196 |  |  | 12,559 |  |  | 13,440 |  |  | 18,944 |  |  | 25,883 |  |  |  | 11,051 |  |  | 23,368 |
Bank notes and senior debt | 25,858 |  |  | 28,298 |  |  | 29,988 |  |  | 27,403 |  |  | 27,409 |  |  |  | 28,040 |  |  | 26,571 |
Subordinated debt | 5,936 |  |  | 5,937 |  |  | 5,934 |  |  | 5,760 |  |  | 5,189 |  |  |  | 5,935 |  |  | 5,530 |
Other | 4,354 |  |  | 6,435 |  |  | 7,826 |  |  | 7,926 |  |  | 5,452 |  |  |  | 6,199 |  |  | 6,564 |
Total borrowed funds | 43,344 |  |  | 53,229 |  |  | 57,188 |  |  | 60,033 |  |  | 63,933 |  |  |  | 51,225 |  |  | 62,033 |
Total interest-bearing liabilities | 291,895 |  |  | 294,674 |  |  | 272,524 |  |  | 274,165 |  |  | 270,875 |  |  |  | 286,385 |  |  | 263,404 |
Noninterest-bearing liabilities and equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing deposits | 101,931 |  |  | 93,776 |  |  | 74,396 |  |  | 73,626 |  |  | 72,149 |  |  |  | 90,078 |  |  | 71,736 |
Accrued expenses and other liabilities | 15,341 |  |  | 16,989 |  |  | 16,437 |  |  | 14,541 |  |  | 14,529 |  |  |  | 16,251 |  |  | 12,975 |
Equity | 52,972 |  |  | 51,874 |  |  | 49,079 |  |  | 49,087 |  |  | 49,156 |  |  |  | 51,315 |  |  | 48,484 |
Total liabilities and equity | $ | 462,139 |  |  | $ | 457,313 |  |  | $ | 412,436 |  |  | $ | 411,419 |  |  | $ | 406,709 |  |  |  | $ | 444,029 |  |  | $ | 396,599 |

(a) | Calculated using average daily balances.

(b) | Amounts include average balances held with the Federal Reserve Bank of Cleveland of $60.0 billion, $34.2 billion, $17.3 billion, $23.0 billion and $15.3 billion for the three months ended September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019, and September 30, 2019, respectively, and $37.3 billion and $14.4 billion for the nine months ended September 30, 2020 and September 30, 2019, respectively.

THE PNC FINANCIAL SERVICES GROUP, INC. | Page 4

Table 4: Details of Net Interest Margin (Unaudited) |  |  |  |  |
| Three months ended |  |  | Nine months ended
| September 30 |  | June 30 |  | March 31 |  | December 31 |  | September 30 |  |  | September 30 |  | September 30
| 2020 |  | 2020 |  | 2020 |  | 2019 |  | 2019 |  |  | 2020 |  | 2019
Average yields/rates (a) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Yield on interest-earning assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment securities |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency | 2.03 | % |  | 2.29 | % |  | 2.63 | % |  | 2.48 | % |  | 2.70 | % |  |  | 2.31 | % |  | 2.85 | %
Non-agency | 7.26 | % |  | 7.13 | % |  | 7.87 | % |  | 8.09 | % |  | 8.89 | % |  |  | 7.43 | % |  | 8.04 | %
Commercial mortgage-backed | 2.50 | % |  | 2.59 | % |  | 2.95 | % |  | 2.30 | % |  | 2.97 | % |  |  | 2.68 | % |  | 3.05 | %
Asset-backed | 2.44 | % |  | 2.60 | % |  | 3.05 | % |  | 3.26 | % |  | 3.31 | % |  |  | 2.70 | % |  | 3.33 | %
U.S. Treasury and government agencies | 1.64 | % |  | 1.77 | % |  | 2.29 | % |  | 2.31 | % |  | 2.44 | % |  |  | 1.88 | % |  | 2.47 | %
Other | 3.39 | % |  | 3.47 | % |  | 3.69 | % |  | 3.36 | % |  | 3.41 | % |  |  | 3.51 | % |  | 3.36 | %
Total securities available for sale | 2.16 | % |  | 2.39 | % |  | 2.77 | % |  | 2.65 | % |  | 2.90 | % |  |  | 2.43 | % |  | 2.97 | %
Securities held to maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed | — |  |  | — |  |  | — |  |  | 2.63 | % |  | 2.78 | % |  |  | — |  |  | 2.91 | %
Commercial mortgage-backed | — |  |  | — |  |  | — |  |  | 4.44 | % |  | 3.68 | % |  |  | — |  |  | 3.59 | %
Asset-backed | — |  |  | 2.38 | % |  | 2.77 | % |  | 3.02 | % |  | 5.48 | % |  |  | 2.66 | % |  | 4.18 | %
U.S. Treasury and government agencies | 2.86 | % |  | 2.84 | % |  | 2.84 | % |  | 2.86 | % |  | 2.86 | % |  |  | 2.85 | % |  | 2.84 | %
Other | 4.20 | % |  | 4.27 | % |  | 4.48 | % |  | 4.47 | % |  | 4.40 | % |  |  | 4.32 | % |  | 4.41 | %
Total securities held to maturity | 3.47 | % |  | 3.47 | % |  | 3.56 | % |  | 2.87 | % |  | 2.98 | % |  |  | 3.50 | % |  | 3.08 | %
Total investment securities | 2.18 | % |  | 2.41 | % |  | 2.78 | % |  | 2.70 | % |  | 2.91 | % |  |  | 2.45 | % |  | 3.00 | %
Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial | 2.82 | % |  | 2.83 | % |  | 3.62 | % |  | 3.88 | % |  | 4.06 | % |  |  | 3.07 | % |  | 4.20 | %
Commercial real estate | 2.65 | % |  | 2.84 | % |  | 3.64 | % |  | 3.89 | % |  | 4.40 | % |  |  | 3.03 | % |  | 4.40 | %
Equipment lease financing | 3.80 | % |  | 3.82 | % |  | 3.93 | % |  | 3.87 | % |  | 3.82 | % |  |  | 3.85 | % |  | 3.94 | %
Consumer | 4.69 | % |  | 4.86 | % |  | 5.38 | % |  | 5.45 | % |  | 5.61 | % |  |  | 4.98 | % |  | 5.57 | %
Residential real estate | 3.74 | % |  | 3.86 | % |  | 3.96 | % |  | 4.10 | % |  | 4.21 | % |  |  | 3.85 | % |  | 4.25 | %
Total loans | 3.32 | % |  | 3.37 | % |  | 4.08 | % |  | 4.27 | % |  | 4.47 | % |  |  | 3.58 | % |  | 4.54 | %
Interest-earning deposits with banks | .10 | % |  | .10 | % |  | 1.27 | % |  | 1.66 | % |  | 2.17 | % |  |  | .28 | % |  | 2.32 | %
Other interest-earning assets | 2.23 | % |  | 2.26 | % |  | 3.51 | % |  | 3.65 | % |  | 3.49 | % |  |  | 2.64 | % |  | 3.70 | %
Total yield on interest-earning assets | 2.57 | % |  | 2.85 | % |  | 3.62 | % |  | 3.71 | % |  | 3.95 | % |  |  | 2.98 | % |  | 4.04 | %
Rate on interest-bearing liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing deposits |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market | .07 | % |  | .15 | % |  | .72 | % |  | .93 | % |  | 1.14 | % |  |  | .29 | % |  | 1.15 | %
Demand | .05 | % |  | .08 | % |  | .41 | % |  | .51 | % |  | .58 | % |  |  | .17 | % |  | .55 | %
Savings | .11 | % |  | .31 | % |  | .79 | % |  | .97 | % |  | 1.14 | % |  |  | .39 | % |  | 1.15 | %
Time deposits | .58 | % |  | .80 | % |  | 1.34 | % |  | 1.52 | % |  | 1.66 | % |  |  | .91 | % |  | 1.63 | %
Total interest-bearing deposits | .12 | % |  | .23 | % |  | .70 | % |  | .87 | % |  | 1.02 | % |  |  | .34 | % |  | 1.01 | %
Borrowed funds |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal Home Loan Bank borrowings | .47 | % |  | 1.00 | % |  | 1.69 | % |  | 2.11 | % |  | 2.48 | % |  |  | 1.16 | % |  | 2.63 | %
Bank notes and senior debt | 1.08 | % |  | 1.56 | % |  | 2.41 | % |  | 2.77 | % |  | 3.21 | % |  |  | 1.72 | % |  | 3.35 | %
Subordinated debt | 1.51 | % |  | 1.91 | % |  | 2.73 | % |  | 3.06 | % |  | 3.53 | % |  |  | 2.05 | % |  | 4.09 | %
Other | 1.31 | % |  | .92 | % |  | 1.69 | % |  | 1.89 | % |  | 2.43 | % |  |  | 1.33 | % |  | 2.44 | %
Total borrowed funds | 1.06 | % |  | 1.39 | % |  | 2.18 | % |  | 2.47 | % |  | 2.87 | % |  |  | 1.59 | % |  | 3.05 | %
Total rate on interest-bearing liabilities | .26 | % |  | .44 | % |  | 1.00 | % |  | 1.21 | % |  | 1.45 | % |  |  | .56 | % |  | 1.48 | %
Interest rate spread | 2.31 | % |  | 2.41 | % |  | 2.62 | % |  | 2.50 | % |  | 2.50 | % |  |  | 2.42 | % |  | 2.56 | %
Benefit from use of noninterest bearing sources (b) | .08 |  |  | .11 |  |  | .22 |  |  | .28 |  |  | .34 |  |  |  | .15 |  |  | .35 |
Net interest margin | 2.39 | % |  | 2.52 | % |  | 2.84 | % |  | 2.78 | % |  | 2.84 | % |  |  | 2.57 | % |  | 2.91 | %

(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 September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019 and September 30, 2019 were $17 million, $19 million, $22 million, $23 million and $25 million, respectively. The taxable-equivalent adjustments to net interest income for the nine months ended September 30, 2020 and September 30, 2019 were $58 million and $79 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 |  |  | Nine months ended
| September 30 |  | June 30 |  | March 31 |  | December 31 |  | September 30 |  |  | September 30 |  | September 30
In millions, except per share data | 2020 |  | 2020 |  | 2020 |  | 2019 |  | 2019 |  |  | 2020 |  | 2019
Basic |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) from continuing operations | $ | 1,532 |  |  | $ | (744 | ) |  | $ | 759 |  |  | $ | 1,143 |  |  | $ | 1,181 |  |  |  | $ | 1,547 |  |  | $ | 3,448 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income attributable to noncontrolling interests | 13 |  |  | 7 |  |  | 7 |  |  | 14 |  |  | 13 |  |  |  | 27 |  |  | 35 |
Preferred stock dividends (a) | 63 |  |  | 55 |  |  | 63 |  |  | 55 |  |  | 63 |  |  |  | 181 |  |  | 181 |
Preferred stock discount accretion and redemptions | 1 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | 1 |  |  |  | 3 |  |  | 3 |
Net income (loss) from continuing operations attributable to common shareholders | 1,455 |  |  | (807 | ) |  | 688 |  |  | 1,073 |  |  | 1,104 |  |  |  | 1,336 |  |  | 3,229 |
Less: Dividends and undistributed earnings allocated to nonvested restricted shares | 8 |  |  | 1 |  |  | 3 |  |  | 5 |  |  | 5 |  |  |  | 7 |  |  | 13 |
Net income (loss) from continuing operations attributable to basic common shareholders | $ | 1,447 |  |  | $ | (808 | ) |  | $ | 685 |  |  | $ | 1,068 |  |  | $ | 1,099 |  |  |  | $ | 1,329 |  |  | $ | 3,216 |
Net income from discontinued operations attributable to common shareholders |  |  | $ | 4,399 |  |  | $ | 156 |  |  | $ | 238 |  |  | $ | 211 |  |  |  | $ | 4,555 |  |  | $ | 589 |
Less: Undistributed earnings allocated to nonvested restricted shares |  |  | 21 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | 0 |  | 22 |  |  | 2 |
Net income from discontinued operations attributable to basic common shareholders |  |  | $ | 4,378 |  |  | $ | 155 |  |  | $ | 237 |  |  | $ | 210 |  |  |  | $ | 4,533 |  |  | $ | 587 |
Basic weighted-average common shares outstanding | 426 |  |  | 426 |  |  | 429 |  |  | 437 |  |  | 444 |  |  |  | 427 |  |  | 450 |
Basic earnings (loss) per common share from continuing operations | $ | 3.40 |  |  | $ | (1.90 | ) |  | $ | 1.59 |  |  | $ | 2.44 |  |  | $ | 2.47 |  |  |  | $ | 3.11 |  |  | $ | 7.15 |
Basic earnings per common share from discontinued operations |  |  | $ | 10.28 |  |  | $ | .37 |  |  | $ | .54 |  |  | $ | .48 |  |  |  | $ | 10.61 |  |  | $ | 1.30 |
Basic earnings per common share | $ | 3.40 |  |  | $ | 8.40 |  |  | $ | 1.96 |  |  | $ | 2.98 |  |  | $ | 2.95 |  |  |  | $ | 13.73 |  |  | $ | 8.45 |
Diluted |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) from continuing operations attributable to diluted common shareholders | $ | 1,447 |  |  | $ | (808 | ) |  | $ | 685 |  |  | $ | 1,068 |  |  | $ | 1,099 |  |  |  | $ | 1,329 |  |  | $ | 3,216 |
Net income from discontinued operations attributable to basic common shareholders |  |  | $ | 4,378 |  |  | $ | 155 |  |  | $ | 237 |  |  | $ | 210 |  |  |  | $ | 4,533 |  |  | $ | 587 |
Less: Impact of earnings per share dilution from discontinued operations |  |  | 1 |  |  | 1 |  |  | 3 |  |  | 2 |  |  | 0 |  | 2 |  | 0 |  | 7 |
Net income from discontinued operations attributable to diluted common shareholders |  |  | $ | 4,377 |  |  | $ | 154 |  |  | $ | 234 |  |  | $ | 208 |  |  |  | $ | 4,531 |  |  | $ | 580 |
Basic weighted-average common shares outstanding | 426 |  |  | 426 |  |  | 429 |  |  | 437 |  |  | 444 |  |  |  | 427 |  |  | 450 |
Dilutive potential common shares |  |  |  |  | 1 |  |  | 1 |  | 0.000004 |  | 1 |  |  |  | 1 |  |  | 1 |
Diluted weighted-average common shares outstanding | 426 |  |  | 426 |  |  | 430 |  |  | 438 |  |  | 445 |  |  |  | 428 |  |  | 451 |
Diluted earnings (loss) per common share from continuing operations | $ | 3.39 |  |  | $ | (1.90 | ) |  | $ | 1.59 |  |  | $ | 2.43 |  |  | $ | 2.47 |  |  |  | $ | 3.11 |  |  | $ | 7.13 |
Diluted earnings per common share from discontinued operations |  |  | $ | 10.28 |  |  | $ | .36 |  |  | $ | .54 |  |  | $ | .47 |  |  |  | $ | 10.59 |  |  | $ | 1.29 |
Diluted earnings per common share | $ | 3.39 |  |  | $ | 8.40 |  |  | $ | 1.95 |  |  | $ | 2.97 |  |  | $ | 2.94 |  |  |  | $ | 13.70 |  |  | $ | 8.42 |

(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)

|  | September 30 |  | June 30 |  | March 31 |  | December 31 |  | September 30
In millions |  | 2020 |  | 2020 |  | 2020 |  | 2019 |  | 2019
Commercial |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  |  |  |  |  |  |  |  |
Manufacturing |  | $ | 22,551 |  |  | $ | 25,590 |  |  | $ | 27,225 |  |  | $ | 21,540 |  |  | $ | 21,846 |
Retail/wholesale trade |  | 20,287 |  |  | 21,747 |  |  | 24,408 |  |  | 21,565 |  |  | 21,761 |
Service providers |  | 20,260 |  |  | 21,347 |  |  | 19,411 |  |  | 16,112 |  |  | 16,189 |
Real estate related (a) |  | 14,040 |  |  | 14,634 |  |  | 14,843 |  |  | 12,346 |  |  | 12,294 |
Financial services |  | 15,005 |  |  | 13,596 |  |  | 13,473 |  |  | 11,318 |  |  | 10,437 |
Health care |  | 9,368 |  |  | 10,109 |  |  | 9,238 |  |  | 8,035 |  |  | 8,137 |
Transportation and warehousing |  | 7,295 |  |  | 7,771 |  |  | 8,160 |  |  | 7,474 |  |  | 7,216 |
Other industries |  | 28,381 |  |  | 29,541 |  |  | 32,373 |  |  | 26,947 |  |  | 26,134 |
Total commercial and industrial |  | 137,187 |  |  | 144,335 |  |  | 149,131 |  |  | 125,337 |  |  | 124,014 |
Commercial real estate |  | 29,028 |  |  | 28,763 |  |  | 28,544 |  |  | 28,110 |  |  | 28,884 |
Equipment lease financing |  | 6,479 |  |  | 7,097 |  |  | 7,061 |  |  | 7,155 |  |  | 7,290 |
Total commercial |  | 172,694 |  |  | 180,195 |  |  | 184,736 |  |  | 160,602 |  |  | 160,188 |
Consumer |  |  |  |  |  |  |  |  |  |
Home equity |  | 24,539 |  |  | 24,879 |  |  | 25,081 |  |  | 25,085 |  |  | 24,971 |
Residential real estate |  | 22,886 |  |  | 22,469 |  |  | 22,250 |  |  | 21,821 |  |  | 21,082 |
Automobile |  | 14,977 |  |  | 16,157 |  |  | 17,194 |  |  | 16,754 |  |  | 16,004 |
Credit card |  | 6,303 |  |  | 6,575 |  |  | 7,132 |  |  | 7,308 |  |  | 6,815 |
Education |  | 3,051 |  |  | 3,132 |  |  | 3,247 |  |  | 3,336 |  |  | 3,461 |
Other consumer |  | 4,829 |  |  | 4,829 |  |  | 5,003 |  |  | 4,937 |  |  | 4,856 |
Total consumer |  | 76,585 |  |  | 78,041 |  |  | 79,907 |  |  | 79,241 |  |  | 77,189 |
Total loans |  | $ | 249,279 |  |  | $ | 258,236 |  |  | $ | 264,643 |  |  | $ | 239,843 |  |  | $ | 237,377 |

(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 |  |  | Nine months ended
|  | September 30 |  | June 30 |  | March 31 |  | December 31 |  | September 30 |  |  | September 30 |  | September 30
Dollars in millions |  | 2020 |  | 2020 |  | 2020 |  | 2019 |  | 2019 |  |  | 2020 |  | 2019
Allowance for loan and lease losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 5,928 |  |  | $ | 3,944 |  |  | $ | 2,742 |  |  | $ | 2,738 |  |  | $ | 2,721 |  |  |  | $ | 2,742 |  |  | $ | 2,629 |
Adoption of ASU 2016-03 (a) |  |  |  |  |  | 463 |  |  |  |  |  |  |  | 463 |  |  |
Gross charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | (59 | ) |  | (112 | ) |  | (78 | ) |  | (67 | ) |  | (41 | ) |  |  | (249 | ) |  | (116 | )
Commercial real estate |  | (1 | ) |  | — |  |  | — |  |  | (2 | ) |  | (11 | ) |  |  | (1 | ) |  | (16 | )
Equipment lease financing |  | (4 | ) |  | (10 | ) |  | (5 | ) |  | (9 | ) |  | (2 | ) |  |  | (19 | ) |  | (6 | )
Home equity |  | (12 | ) |  | (8 | ) |  | (11 | ) |  | (16 | ) |  | (11 | ) |  |  | (31 | ) |  | (52 | )
Residential real estate |  | (2 | ) |  | — |  |  | (2 | ) |  | (4 | ) |  | (1 | ) |  |  | (4 | ) |  | (5 | )
Automobile |  | (57 | ) |  | (69 | ) |  | (84 | ) |  | (78 | ) |  | (71 | ) |  |  | (210 | ) |  | (183 | )
Credit card |  | (74 | ) |  | (76 | ) |  | (78 | ) |  | (70 | ) |  | (61 | ) |  |  | (228 | ) |  | (193 | )
Education |  | (3 | ) |  | (4 | ) |  | (6 | ) |  | (6 | ) |  | (7 | ) |  |  | (13 | ) |  | (20 | )
Other consumer |  | (35 | ) |  | (35 | ) |  | (40 | ) |  | (39 | ) |  | (36 | ) |  |  | (110 | ) |  | (92 | )
Total gross charge-offs |  | (247 | ) |  | (314 | ) |  | (304 | ) |  | (291 | ) |  | (241 | ) |  |  | (865 | ) |  | (683 | )
Recoveries: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | 21 |  |  | 13 |  |  | 18 |  |  | 14 |  |  | 14 |  |  |  | 52 |  |  | 45 |
Commercial real estate |  | 2 |  |  | — |  |  | 4 |  |  | 3 |  |  | 3 |  |  |  | 6 |  |  | 8 |
Equipment lease financing |  | 3 |  |  | 2 |  |  | 2 |  |  | 2 |  |  | 2 |  |  |  | 7 |  |  | 6 |
Home equity |  | 15 |  |  | 15 |  |  | 14 |  |  | 18 |  |  | 20 |  |  |  | 44 |  |  | 56 |
Residential real estate |  | 4 |  |  | 4 |  |  | 4 |  |  | 3 |  |  | 4 |  |  |  | 12 |  |  | 11 |
Automobile |  | 31 |  |  | 29 |  |  | 35 |  |  | 29 |  |  | 30 |  |  |  | 95 |  |  | 85 |
Credit card |  | 9 |  |  | 9 |  |  | 8 |  |  | 6 |  |  | 7 |  |  |  | 26 |  |  | 21 |
Education |  | 2 |  |  | 2 |  |  | 2 |  |  | 2 |  |  | 2 |  |  |  | 6 |  |  | 6 |
Other consumer |  | 5 |  |  | 4 |  |  | 5 |  |  | 5 |  |  | 4 |  |  |  | 14 |  |  | 12 |
Total recoveries |  | 92 |  |  | 78 |  |  | 92 |  |  | 82 |  |  | 86 |  |  |  | 262 |  |  | 250 |
Net (charge-offs) / recoveries: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | (38 | ) |  | (99 | ) |  | (60 | ) |  | (53 | ) |  | (27 | ) |  |  | (197 | ) |  | (71 | )
Commercial real estate |  | 1 |  |  | — |  |  | 4 |  |  | 1 |  |  | (8 | ) |  |  | 5 |  |  | (8 | )
Equipment lease financing |  | (1 | ) |  | (8 | ) |  | (3 | ) |  | (7 | ) |  | — |  |  |  | (12 | ) |  | — |
Home equity |  | 3 |  |  | 7 |  |  | 3 |  |  | 2 |  |  | 9 |  |  |  | 13 |  |  | 4 |
Residential real estate |  | 2 |  |  | 4 |  |  | 2 |  |  | (1 | ) |  | 3 |  |  |  | 8 |  |  | 6 |
Automobile |  | (26 | ) |  | (40 | ) |  | (49 | ) |  | (49 | ) |  | (41 | ) |  |  | (115 | ) |  | (98 | )
Credit card |  | (65 | ) |  | (67 | ) |  | (70 | ) |  | (64 | ) |  | (54 | ) |  |  | (202 | ) |  | (172 | )
Education |  | (1 | ) |  | (2 | ) |  | (4 | ) |  | (4 | ) |  | (5 | ) |  |  | (7 | ) |  | (14 | )
Other consumer |  | (30 | ) |  | (31 | ) |  | (35 | ) |  | (34 | ) |  | (32 | ) |  |  | (96 | ) |  | (80 | )
Total net (charge-offs) |  | (155 | ) |  | (236 | ) |  | (212 | ) |  | (209 | ) |  | (155 | ) |  |  | (603 | ) |  | (433 | )
Provision for (recapture of) credit losses (b) |  | (23 | ) |  | 2,220 |  |  | 952 |  |  | 221 |  |  | 183 |  |  |  | 3,149 |  |  | 552 |
Net (increase) in allowance for unfunded loan commitments and letters of credit |  | — |  |  | — |  |  | — |  |  | (14 | ) |  | (13 | ) |  |  | — |  |  | (19 | )
Other |  | 1 |  |  | — |  |  | (1 | ) |  | 6 |  |  | 2 |  |  |  | — |  |  | 9 |
Ending balance |  | $ | 5,751 |  |  | $ | 5,928 |  |  | $ | 3,944 |  |  | $ | 2,742 |  |  | $ | 2,738 |  |  |  | $ | 5,751 |  |  | $ | 2,738 |
Supplemental Information |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net charge-offs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial net charge-offs |  | $ | (38 | ) |  | $ | (107 | ) |  | $ | (59 | ) |  | $ | (59 | ) |  | $ | (35 | ) |  |  | $ | (204 | ) |  | $ | (79 | )
Consumer net charge-offs |  | (117 | ) |  | (129 | ) |  | (153 | ) |  | (150 | ) |  | (120 | ) |  |  | (399 | ) |  | (354 | )
Total net charge-offs |  | $ | (155 | ) |  | $ | (236 | ) |  | $ | (212 | ) |  | $ | (209 | ) |  | $ | (155 | ) |  |  | $ | (603 | ) |  | $ | (433 | )
Net charge-offs to average loans (annualized) |  | .24 | % |  | .35 | % |  | .35 | % |  | .35 | % |  | .26 | % |  |  | .32 | % |  | .25 | %
Commercial |  | .09 | % |  | .23 | % |  | .14 | % |  | .15 | % |  | .09 | % |  |  | .15 | % |  | .07 | %
Consumer |  | .60 | % |  | .66 | % |  | .77 | % |  | .76 | % |  | .62 | % |  |  | .68 | % |  | .63 | %

(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 first and second quarter 2020 Form 10-Qs included, and our third quarter 2020 Form 10-Q will include, additional information related to our adoption of the CECL standard.

(b) | See Table 8 for the components of the Provision for 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 Credit Losses Under CECL

|  | Three months ended |  |  | Nine months ended
|  | September 30 |  | June 30 |  | March 31 |  |  | September 30
In millions |  | 2020 |  | 2020 |  | 2020 |  |  | 2020
Provision for credit losses |  |  |  |  |  |  |  |  |
Loans and leases |  | $ | (23 | ) |  | $ | 2,220 |  |  | $ | 952 |  |  |  | $ | 3,149 |
Unfunded lending related commitments |  | 27 |  |  | 212 |  |  | (47 | ) |  |  | 192 |
Investment securities |  | 39 |  |  | 30 |  |  | — |  |  |  | 69 |
Other financial assets |  | 9 |  |  | 1 |  |  | 9 |  |  |  | 19 |
Total provision for credit losses |  | $ | 52 |  |  | $ | 2,463 |  |  | 914 |  |  |  | $ | 3,429 |

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

| September 30, 2020 |  | June 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 | $ | 2,735 |  |  | $ | 137,187 |  | 1.99 | % |  | $ | 2,834 |  |  | $ | 144,335 |  | 1.96 | % |  | $ | 1,489 |  |  | $ | 125,337 |  | 1.19 | %
Commercial real estate | 630 |  |  | 29,028 |  | 2.17 | % |  | 382 |  |  | 28,763 |  | 1.33 | % |  | 278 |  |  | 28,110 |  | .99 | %
Equipment lease financing | 163 |  |  | 6,479 |  | 2.52 | % |  | 164 |  |  | 7,097 |  | 2.31 | % |  | 45 |  |  | 7,155 |  | .63 | %
Total commercial | 3,528 |  |  | 172,694 |  | 2.04 | % |  | 3,380 |  |  | 180,195 |  | 1.88 | % |  | 1,812 |  |  | 160,602 |  | 1.13 | %
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity | 349 |  |  | 24,539 |  | 1.42 | % |  | 382 |  |  | 24,879 |  | 1.54 | % |  | 87 |  |  | 25,085 |  | .35 | %
Residential real estate | 28 |  |  | 22,886 |  | .12 | % |  | 50 |  |  | 22,469 |  | .22 | % |  | 258 |  |  | 21,821 |  | 1.18 | %
Automobile | 404 |  |  | 14,977 |  | 2.70 | % |  | 450 |  |  | 16,157 |  | 2.79 | % |  | 160 |  |  | 16,754 |  | .95 | %
Credit card | 891 |  |  | 6,303 |  | 14.14 | % |  | 1,010 |  |  | 6,575 |  | 15.36 | % |  | 288 |  |  | 7,308 |  | 3.94 | %
Education | 136 |  |  | 3,051 |  | 4.46 | % |  | 151 |  |  | 3,132 |  | 4.82 | % |  | 17 |  |  | 3,336 |  | .51 | %
Other consumer | 415 |  |  | 4,829 |  | 8.59 | % |  | 505 |  |  | 4,829 |  | 10.46 | % |  | 120 |  |  | 4,937 |  | 2.43 | %
Total consumer | 2,223 |  |  | 76,585 |  | 2.90 | % |  | 2,548 |  |  | 78,041 |  | 3.26 | % |  | 930 |  |  | 79,241 |  | 1.17 | %
Total | 5,751 |  |  | $ | 249,279 |  | 2.31 | % |  | 5,928 |  |  | $ | 258,236 |  | 2.30 | % |  | 2,742 |  |  | $ | 239,843 |  | 1.14 | %
Allowance for unfunded lending related commitments | 689 |  |  |  |  |  | 662 |  |  |  |  |  | 318 |  |  |  |
Allowance for credit losses | $ | 6,440 |  |  |  |  |  | $ | 6,590 |  |  |  |  |  | $ | 3,060 |  |  |  |
Supplemental Information |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses to total loans |  |  |  | 2.58 | % |  |  |  |  | 2.55 | % |  |  |  |  | 1.28 | %
Commercial |  |  |  | 2.38 | % |  |  |  |  | 2.18 | % |  |  |  |  | 1.33 | %
Consumer |  |  |  | 3.04 | % |  |  |  |  | 3.41 | % |  |  |  |  | 1.18 | %

(a) Excludes allowances for investment securities and other financial assets, which together totaled $98 million and $51 million at September 30, 2020 and June 30, 2020,
respectively.

THE PNC FINANCIAL SERVICES GROUP, INC. | Page 9

Details of Nonperforming Assets (Unaudited)
Table 10: Nonperforming Assets by Type

|  | September 30 |  | June 30 |  | March 31 |  | December 31 |  | September 30
Dollars in millions |  | 2020 |  | 2020 |  | 2020 |  | 2019 |  | 2019
Nonperforming loans, including TDRs |  |  |  |  |  |  |  |  |  |
Commercial |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  |  |  |  |  |  |  |  |
Retail/wholesale trade |  | $ | 90 |  |  | $ | 117 |  |  | $ | 121 |  |  | $ | 74 |  |  | $ | 61 |
Manufacturing |  | 80 |  |  | 58 |  |  | 79 |  |  | 102 |  |  | 109 |
Service providers |  | 69 |  |  | 57 |  |  | 63 |  |  | 53 |  |  | 55 |
Real estate related (a) |  | 140 |  |  | 158 |  |  | 25 |  |  | 24 |  |  | 33 |
Health care |  | 20 |  |  | 19 |  |  | 14 |  |  | 17 |  |  | 17 |
Transportation and warehousing |  | 14 |  |  | 20 |  |  | 23 |  |  | 18 |  |  | 13 |
Other industries |  | 264 |  |  | 264 |  |  | 169 |  |  | 137 |  |  | 203 |
Total commercial and industrial |  | 677 |  |  | 693 |  |  | 494 |  |  | 425 |  |  | 491 |
Commercial real estate |  | 217 |  |  | 43 |  |  | 42 |  |  | 44 |  |  | 75 |
Equipment lease financing |  | 21 |  |  | 22 |  |  | 30 |  |  | 32 |  |  | 10 |
Total commercial |  | 915 |  |  | 758 |  |  | 566 |  |  | 501 |  |  | 576 |
Consumer (b) |  |  |  |  |  |  |  |  |  |
Home equity |  | 639 |  |  | 636 |  |  | 617 |  |  | 669 |  |  | 685 |
Residential real estate |  | 339 |  |  | 305 |  |  | 292 |  |  | 315 |  |  | 325 |
Automobile |  | 171 |  |  | 156 |  |  | 154 |  |  | 135 |  |  | 128 |
Credit card |  | 13 |  |  | 15 |  |  | 10 |  |  | 11 |  |  | 9 |
Other consumer |  | 8 |  |  | 6 |  |  | 5 |  |  | 4 |  |  | 5 |
Total consumer |  | 1,170 |  |  | 1,118 |  |  | 1,078 |  |  | 1,134 |  |  | 1,152 |
Total nonperforming loans (c) (d) |  | 2,085 |  |  | 1,876 |  |  | 1,644 |  |  | 1,635 |  |  | 1,728 |
OREO and foreclosed assets |  | 67 |  |  | 79 |  |  | 111 |  |  | 117 |  |  | 119 |
Total nonperforming assets |  | $ | 2,152 |  |  | $ | 1,955 |  |  | $ | 1,755 |  |  | $ | 1,752 |  |  | $ | 1,847 |
Nonperforming loans to total loans |  | .84 | % |  | .73 | % |  | .62 | % |  | .68 | % |  | .73 | %
Nonperforming assets to total loans, OREO and foreclosed assets |  | .86 | % |  | .76 | % |  | .66 | % |  | .73 | % |  | .78 | %
Nonperforming assets to total assets |  | .47 | % |  | .43 | % |  | .39 | % |  | .43 | % |  | .45 | %
Allowance for loan and lease losses to nonperforming loans (e) |  | 276 | % |  | 316 | % |  | 240 | % |  | 168 | % |  | 158 | %

(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 loans as of September 30, 2020, June 30, 2020 and March 31, 2020 include purchased credit deteriorated loans. Our 2019 Form 10-K and our first and second quarter 2020 Form 10-Qs included, and our third quarter 2020 Form 10-Q will include, additional information related to our adoption of the CECL standard.

(e) | Ratios at September 30, 2020, June 30, 2020 and March 31, 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

|  | July 1, 2020 - |  |  | April 1, 2020 - |  |  | January 1, 2020 - |  |  | October 1, 2019 - |  |  | July 1, 2019 - |
In millions |  | September 30, 2020 |  |  | June 30, 2020 |  |  | March 31, 2020 |  |  | December 31, 2019 |  |  | September 30, 2019 |
Beginning balance |  | $ | 1,955 |  |  | $ | 1,755 |  |  | $ | 1,752 |  |  | $ | 1,847 |  |  | $ | 1,850 |
New nonperforming assets |  | 512 |  |  | 458 |  |  | 391 |  |  | 357 |  |  | 290 |
Charge-offs and valuation adjustments |  | (75 | ) |  | (104 | ) |  | (145 | ) |  | (218 | ) |  | (112 | )
Principal activity, including paydowns and payoffs |  | (175 | ) |  | (85 | ) |  | (158 | ) |  | (157 | ) |  | (122 | )
Asset sales and transfers to loans held for sale |  | (20 | ) |  | (28 | ) |  | (20 | ) |  | (21 | ) |  | (34 | )
Returned to performing status |  | (45 | ) |  | (41 | ) |  | (65 | ) |  | (56 | ) |  | (25 | )
Ending balance |  | $ | 2,152 |  |  | $ | 1,955 |  |  | $ | 1,755 |  |  | $ | 1,752 |  |  | $ | 1,847 |

Table 12: Largest Individual Nonperforming Assets (a)

September 30, 2020 - Dollars in millions |  |
Ranking |  | Outstandings |  |  | Industry
1 |  | $ | 142 |  |  | Real Estate and Rental and Leasing
2 |  | 85 |  |  | Real Estate and Rental and Leasing
3 |  | 35 |  |  | Real Estate and Rental and Leasing
4 |  | 34 |  |  | Wholesale Trade
5 |  | 33 |  |  | Real Estate and Rental and Leasing
6 |  | 33 |  |  | Mining, Quarrying, and Oil and Gas Extraction
7 |  | 29 |  |  | Information
8 |  | 27 |  |  | Mining, Quarrying, and Oil and Gas Extraction
9 |  | 23 |  |  | Mining, Quarrying, and Oil and Gas Extraction
10 |  | 20 |  |  | Mining, Quarrying, and Oil and Gas Extraction
Total |  | $ | 461 |  |  |
As a percent of total nonperforming assets |  | 21% |

(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 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 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 quarter 2020 Form 10-Q included, and our third quarter 2020 Form 10-Q 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
|  | Sept. 30 |  | Jun. 30 |  | Mar. 31 |  | Dec. 31 |  | Sept. 30 |  | Sept. 30 |  | Jun. 30 |  | Mar. 31 |  | Dec. 31 |  | Sept. 30
Dollars in millions |  | 2020 |  | 2020 |  | 2020 |  | 2019 |  | 2019 |  | 2020 |  | 2020 |  | 2020 |  | 2019 |  | 2019
Commercial and industrial |  | $ | 56 |  |  | $ | 49 |  |  | $ | 97 |  |  | $ | 102 |  |  | $ | 82 |  |  | .04 | % |  | .03 | % |  | .07 | % |  | .08 | % |  | .07 | %
Commercial real estate |  | 6 |  |  | 51 |  |  | 6 |  |  | 4 |  |  | 3 |  |  | .02 | % |  | .18 | % |  | .02 | % |  | .01 | % |  | .01 | %
Equipment lease financing |  | 7 |  |  | 8 |  |  | 42 |  |  | 49 |  |  | 6 |  |  | .11 | % |  | .11 | % |  | .59 | % |  | .68 | % |  | .08 | %
Home equity |  | 48 |  |  | 70 |  |  | 65 |  |  | 58 |  |  | 53 |  |  | .20 | % |  | .28 | % |  | .26 | % |  | .23 | % |  | .21 | %
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non government insured |  | 99 |  |  | 135 |  |  | 121 |  |  | 90 |  |  | 76 |  |  | .43 | % |  | .60 | % |  | .54 | % |  | .41 | % |  | .36 | %
Government insured |  | 89 |  |  | 63 |  |  | 52 |  |  | 50 |  |  | 53 |  |  | .39 | % |  | .28 | % |  | .23 | % |  | .23 | % |  | .25 | %
Automobile |  | 116 |  |  | 105 |  |  | 177 |  |  | 178 |  |  | 145 |  |  | .77 | % |  | .65 | % |  | 1.03 | % |  | 1.06 | % |  | .91 | %
Credit card |  | 44 |  |  | 53 |  |  | 59 |  |  | 60 |  |  | 56 |  |  | .70 | % |  | .81 | % |  | .83 | % |  | .82 | % |  | .82 | %
Education |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non government insured |  | 6 |  |  | 3 |  |  | 7 |  |  | 7 |  |  | 8 |  |  | .20 | % |  | .10 | % |  | .22 | % |  | .21 | % |  | .23 | %
Government insured |  | 51 |  |  | 36 |  |  | 45 |  |  | 48 |  |  | 48 |  |  | 1.67 | % |  | 1.15 | % |  | 1.39 | % |  | 1.44 | % |  | 1.39 | %
Other consumer |  | 17 |  |  | 17 |  |  | 17 |  |  | 15 |  |  | 17 |  |  | .35 | % |  | .35 | % |  | .34 | % |  | .30 | % |  | .35 | %
Total |  | $ | 539 |  |  | $ | 590 |  |  | $ | 688 |  |  | $ | 661 |  |  | $ | 547 |  |  | .22 | % |  | .23 | % |  | .26 | % |  | .28 | % |  | .23 | %

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

|  | Amount |  | Percent of Total Outstandings
|  | Sept. 30 |  | Jun. 30 |  | Mar. 31 |  | Dec. 31 |  | Sept. 30 |  | Sept. 30 |  | Jun. 30 |  | Mar. 31 |  | Dec. 31 |  | Sept. 30
Dollars in millions |  | 2020 |  | 2020 |  | 2020 |  | 2019 |  | 2019 |  | 2020 |  | 2020 |  | 2020 |  | 2019 |  | 2019
Commercial and industrial |  | $ | 37 |  |  | $ | 28 |  |  | $ | 22 |  |  | $ | 30 |  |  | $ | 49 |  |  | .03 | % |  | .02 | % |  | .01 | % |  | .02 | % |  | .04 | %
Commercial real estate |  | 6 |  |  | 4 |  |  | 1 |  |  | 1 |  |  | 3 |  |  | .02 | % |  | .01 | % |  | .00 | % |  | .00 | % |  | .01 | %
Equipment lease financing |  | 4 |  |  | 9 |  |  | 2 |  |  | 5 |  |  | 4 |  |  | .06 | % |  | .13 | % |  | .03 | % |  | .07 | % |  | .05 | %
Home equity |  | 22 |  |  | 27 |  |  | 28 |  |  | 24 |  |  | 24 |  |  | .09 | % |  | .11 | % |  | .11 | % |  | .10 | % |  | .10 | %
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non government insured |  | 22 |  |  | 34 |  |  | 30 |  |  | 16 |  |  | 20 |  |  | .10 | % |  | .15 | % |  | .13 | % |  | .07 | % |  | .09 | %
Government insured |  | 58 |  |  | 59 |  |  | 52 |  |  | 53 |  |  | 57 |  |  | .25 | % |  | .26 | % |  | .23 | % |  | .24 | % |  | .27 | %
Automobile |  | 32 |  |  | 34 |  |  | 49 |  |  | 47 |  |  | 36 |  |  | .21 | % |  | .21 | % |  | .28 | % |  | .28 | % |  | .22 | %
Credit card |  | 33 |  |  | 38 |  |  | 37 |  |  | 37 |  |  | 33 |  |  | .52 | % |  | .58 | % |  | .52 | % |  | .51 | % |  | .48 | %
Education |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non government insured |  | 2 |  |  | 2 |  |  | 4 |  |  | 3 |  |  | 5 |  |  | .07 | % |  | .06 | % |  | .12 | % |  | .09 | % |  | .14 | %
Government insured |  | 24 |  |  | 21 |  |  | 26 |  |  | 31 |  |  | 30 |  |  | .79 | % |  | .67 | % |  | .80 | % |  | .93 | % |  | .87 | %
Other consumer |  | 11 |  |  | 8 |  |  | 10 |  |  | 11 |  |  | 8 |  |  | .23 | % |  | .17 | % |  | .20 | % |  | .22 | % |  | .16 | %
Total |  | $ | 251 |  |  | $ | 264 |  |  | $ | 261 |  |  | $ | 258 |  |  | $ | 269 |  |  | .10 | % |  | .10 | % |  | .10 | % |  | .11 | % |  | .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
|  | Sept. 30 |  | Jun. 30 |  | Mar. 31 |  | Dec. 31 |  | Sept. 30 |  | Sept. 30 |  | Jun. 30 |  | Mar. 31 |  | Dec. 31 |  | Sept. 30
Dollars in millions |  | 2020 |  | 2020 |  | 2020 |  | 2019 |  | 2019 |  | 2020 |  | 2020 |  | 2020 |  | 2019 |  | 2019
Commercial and industrial |  | $ | 36 |  |  | $ | 34 |  |  | $ | 51 |  |  | $ | 85 |  |  | $ | 64 |  |  | .03 | % |  | .02 | % |  | .03 | % |  | .07 | % |  | .05 | %
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non government insured |  | 28 |  |  | 19 |  |  | 18 |  |  | 14 |  |  | 15 |  |  | .12 | % |  | .08 | % |  | .08 | % |  | .06 | % |  | .07 | %
Government insured |  | 241 |  |  | 245 |  |  | 282 |  |  | 301 |  |  | 287 |  |  | 1.05 | % |  | 1.09 | % |  | 1.27 | % |  | 1.38 | % |  | 1.36 | %
Automobile |  | 12 |  |  | 19 |  |  | 19 |  |  | 18 |  |  | 11 |  |  | .08 | % |  | .12 | % |  | .11 | % |  | .11 | % |  | .07 | %
Credit card |  | 60 |  |  | 61 |  |  | 70 |  |  | 67 |  |  | 57 |  |  | .95 | % |  | .93 | % |  | .98 | % |  | .92 | % |  | .84 | %
Education |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non government insured |  | 1 |  |  | 1 |  |  | 2 |  |  | 2 |  |  | 3 |  |  | .03 | % |  | .03 | % |  | .06 | % |  | .06 | % |  | .09 | %
Government insured |  | 62 |  |  | 65 |  |  | 82 |  |  | 89 |  |  | 87 |  |  | 2.03 | % |  | 2.08 | % |  | 2.53 | % |  | 2.67 | % |  | 2.51 | %
Other consumer |  | 8 |  |  | 12 |  |  | 10 |  |  | 9 |  |  | 8 |  |  | .17 | % |  | .25 | % |  | .20 | % |  | .18 | % |  | .16 | %
Total |  | $ | 448 |  |  | $ | 456 |  |  | $ | 534 |  |  | $ | 585 |  |  | $ | 532 |  |  | .18 | % |  | .18 | % |  | .20 | % |  | .24 | % |  | .22 | %

(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 as of September 30, 2020, June 30, 2020 and March 31, 2020 include purchased credit deteriorated loans. Our 2019 Form 10-K and our first and second quarter 2020 Form 10-Qs included, and our third quarter 2020 Form 10-Q will include, additional information related to our adoption of the CECL 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 an ultra-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 government 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

| September 30 |  | June 30 |  | March 31 |  | December 31 |  | September 30
| 2020 |  | 2020 |  | 2020 |  | 2019 |  | 2019
Full-time employees |  |  |  |  |  |  |  |  |
Retail Banking | 27,808 |  |  | 29,051 |  |  | 28,737 |  |  | 28,270 |  |  | 28,279 |
Other full-time employees | 21,997 |  |  | 21,752 |  |  | 21,776 |  |  | 21,747 |  |  | 21,701 |
Total full-time employees | 49,805 |  |  | 50,803 |  |  | 50,513 |  |  | 50,017 |  |  | 49,980 |
Part-time employees |  |  |  |  |  |  |  |  |
Retail Banking | 1,593 |  |  | 1,854 |  |  | 1,780 |  |  | 1,759 |  |  | 1,823 |
Other part-time employees | 104 |  |  | 476 |  |  | 129 |  |  | 142 |  |  | 153 |
Total part-time employees | 1,697 |  |  | 2,330 |  |  | 1,909 |  |  | 1,901 |  |  | 1,976 |
Total | 51,502 |  |  | 53,133 |  |  | 52,422 |  |  | 51,918 |  |  | 51,956 |

THE PNC FINANCIAL SERVICES GROUP, INC. | Page 14

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

| Three months ended |  |  | Nine months ended
| September 30 |  | June 30 |  | March 31 |  | December 31 |  | September 30 |  |  | September 30 |  | September 30
In millions | 2020 |  | 2020 |  | 2020 |  | 2019 |  | 2019 |  |  | 2020 |  | 2019
Income |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail Banking | $ | 530 |  |  | $ | (223 | ) |  | $ | 201 |  |  | $ | 277 |  |  | $ | 347 |  |  |  | $ | 508 |  |  | $ | 936 |
Corporate & Institutional Banking | 670 |  |  | (358 | ) |  | 370 |  |  | 649 |  |  | 645 |  |  |  | 682 |  |  | 1,799 |
Asset Management Group | 91 |  |  | 28 |  |  | 54 |  |  | 91 |  |  | 46 |  |  |  | 173 |  |  | 171 |
Other | 241 |  |  | (191 | ) |  | 134 |  |  | 126 |  |  | 143 |  |  |  | 184 |  |  | 542 |
Net income (loss) from continuing operations | $ | 1,532 |  |  | $ | (744 | ) |  | $ | 759 |  |  | $ | 1,143 |  |  | $ | 1,181 |  |  |  | $ | 1,547 |  |  | $ | 3,448 |
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail Banking | $ | 2,056 |  |  | $ | 1,975 |  |  | $ | 2,244 |  |  | $ | 2,054 |  |  | $ | 2,137 |  |  |  | $ | 6,275 |  |  | $ | 6,114 |
Corporate & Institutional Banking | 1,748 |  |  | 1,790 |  |  | 1,660 |  |  | 1,615 |  |  | 1,584 |  |  |  | 5,198 |  |  | 4,636 |
Asset Management Group | 310 |  |  | 293 |  |  | 292 |  |  | 352 |  |  | 286 |  |  |  | 895 |  |  | 927 |
Other | 167 |  |  | 18 |  |  | 140 |  |  | 300 |  |  | 235 |  |  |  | 325 |  |  | 841 |
Total revenue | $ | 4,281 |  |  | $ | 4,076 |  |  | $ | 4,336 |  |  | $ | 4,321 |  |  | $ | 4,242 |  |  |  | $ | 12,693 |  |  | $ | 12,518 |

(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 |  |  | Nine months ended
| September 30 |  | June 30 |  | March 31 |  | December 31 |  | September 30 |  |  | September 30 |  | September 30
Dollars in millions | 2020 |  | 2020 |  | 2020 |  | 2019 |  | 2019 |  |  | 2020 |  | 2019
Income Statement |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income | $ | 1,383 |  |  | $ | 1,390 |  |  | $ | 1,456 |  |  | $ | 1,402 |  |  | $ | 1,393 |  |  |  | $ | 4,229 |  |  | $ | 4,118 |
Noninterest income | 673 |  |  | 585 |  |  | 788 |  |  | 652 |  |  | 744 |  |  |  | 2,046 |  |  | 1,996 |
Total revenue | 2,056 |  |  | 1,975 |  |  | 2,244 |  |  | 2,054 |  |  | 2,137 |  |  |  | 6,275 |  |  | 6,114 |
Provision for (recapture of) credit losses | (157 | ) |  | 761 |  |  | 445 |  |  | 161 |  |  | 147 |  |  |  | 1,049 |  |  | 356 |
Noninterest expense | 1,521 |  |  | 1,500 |  |  | 1,536 |  |  | 1,530 |  |  | 1,536 |  |  |  | 4,557 |  |  | 4,531 |
Pretax earnings (loss) | 692 |  |  | (286 | ) |  | 263 |  |  | 363 |  |  | 454 |  |  |  | 669 |  |  | 1,227 |
Income taxes (benefit) | 162 |  |  | (63 | ) |  | 62 |  |  | 86 |  |  | 107 |  |  |  | 161 |  |  | 291 |
Earnings | $ | 530 |  |  | $ | (223 | ) |  | $ | 201 |  |  | $ | 277 |  |  | $ | 347 |  |  |  | $ | 508 |  |  | $ | 936 |
Average Balance Sheet |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans held for sale | $ | 700 |  |  | $ | 829 |  |  | $ | 779 |  |  | $ | 747 |  |  | $ | 760 |  |  |  | $ | 769 |  |  | $ | 586 |
Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity | $ | 22,647 |  |  | $ | 22,790 |  |  | $ | 22,736 |  |  | $ | 22,590 |  |  | $ | 22,434 |  |  |  | $ | 22,723 |  |  | $ | 22,679 |
Residential real estate | 18,435 |  |  | 18,244 |  |  | 17,964 |  |  | 17,352 |  |  | 16,630 |  |  |  | 18,215 |  |  | 15,806 |
Automobile | 15,573 |  |  | 16,688 |  |  | 17,096 |  |  | 16,427 |  |  | 15,761 |  |  |  | 16,449 |  |  | 15,201 |
Credit card | 6,408 |  |  | 6,690 |  |  | 7,207 |  |  | 6,985 |  |  | 6,624 |  |  |  | 6,767 |  |  | 6,403 |
Education | 3,119 |  |  | 3,218 |  |  | 3,343 |  |  | 3,428 |  |  | 3,538 |  |  |  | 3,226 |  |  | 3,672 |
Other consumer | 2,262 |  |  | 2,454 |  |  | 2,533 |  |  | 2,418 |  |  | 2,309 |  |  |  | 2,417 |  |  | 2,187 |
Total consumer | 68,444 |  |  | 70,084 |  |  | 70,879 |  |  | 69,200 |  |  | 67,296 |  |  |  | 69,797 |  |  | 65,948 |
Commercial | 13,356 |  |  | 13,612 |  |  | 10,524 |  |  | 10,323 |  |  | 10,379 |  |  |  | 12,298 |  |  | 10,440 |
Total loans | $ | 81,800 |  |  | $ | 83,696 |  |  | $ | 81,403 |  |  | $ | 79,523 |  |  | $ | 77,675 |  |  |  | $ | 82,095 |  |  | $ | 76,388 |
Total assets | $ | 98,731 |  |  | $ | 102,103 |  |  | $ | 97,062 |  |  | $ | 94,967 |  |  | $ | 93,222 |  |  |  | $ | 98,764 |  |  | $ | 92,282 |
Deposits |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing demand | $ | 43,752 |  |  | $ | 39,134 |  |  | $ | 32,225 |  |  | $ | 32,674 |  |  | $ | 32,092 |  |  |  | $ | 38,390 |  |  | $ | 31,338 |
Interest-bearing demand | 49,274 |  |  | 47,339 |  |  | 42,865 |  |  | 41,689 |  |  | 41,420 |  |  |  | 46,501 |  |  | 42,207 |
Money market | 23,816 |  |  | 22,942 |  |  | 22,866 |  |  | 23,927 |  |  | 24,807 |  |  |  | 23,210 |  |  | 25,786 |
Savings | 70,236 |  |  | 67,947 |  |  | 62,781 |  |  | 59,877 |  |  | 57,752 |  |  |  | 67,000 |  |  | 55,659 |
Certificates of deposit | 10,852 |  |  | 11,661 |  |  | 12,233 |  |  | 12,598 |  |  | 12,766 |  |  |  | 11,579 |  |  | 12,619 |
Total deposits | $ | 197,930 |  |  | $ | 189,023 |  |  | $ | 172,970 |  |  | $ | 170,765 |  |  | $ | 168,837 |  |  |  | $ | 186,680 |  |  | $ | 167,609 |
Performance Ratios |  |  |  |  |  |  |  |  |  |  |  |  |  |
Return on average assets | 2.13 | % |  | (.88 | )% |  | .84 | % |  | 1.16 | % |  | 1.48 | % |  |  | .69 | % |  | 1.36 | %
Noninterest income to total revenue | 33 | % |  | 30 | % |  | 35 | % |  | 32 | % |  | 35 | % |  |  | 33 | % |  | 33 | %
Efficiency | 74 | % |  | 76 | % |  | 68 | % |  | 74 | % |  | 72 | % |  |  | 73 | % |  | 74 | %

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

THE PNC FINANCIAL SERVICES GROUP, INC. | Page 16

Retail Banking (Unaudited) (Continued)

| Three months ended |  | Nine months ended
| September 30 |  | June 30 |  | March 31 |  | December 31 |  | September 30 |  | September 30 |  | September 30
Dollars in millions, except as noted | 2020 |  | 2020 |  | 2020 |  | 2019 |  | 2019 |  | 2020 |  | 2019
Supplemental Noninterest Income Information |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer services | $ | 371 |  |  | $ | 315 |  |  | $ | 372 |  |  | $ | 382 |  |  | $ | 397 |  |  | $ | 1,058 |  |  | $ | 1,148 |
Residential mortgage | $ | 137 |  |  | $ | 158 |  |  | $ | 210 |  |  | $ | 87 |  |  | $ | 134 |  |  | $ | 505 |  |  | $ | 281 |
Service charges on deposits | $ | 118 |  |  | $ | 80 |  |  | $ | 166 |  |  | $ | 183 |  |  | $ | 178 |  |  | $ | 364 |  |  | $ | 504 |
Residential Mortgage Information |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage servicing statistics (in billions, except as noted) (a) |  |  |  |  |  |  |  |  |  |  |  |  |
Serviced portfolio balance (b) | $ | 119 |  |  | $ | 122 |  |  | $ | 118 |  |  | $ | 120 |  |  | $ | 123 |  |  |  |  |
Serviced portfolio acquisitions | $ | 8 |  |  | $ | 11 |  |  | $ | 2 |  |  | $ | 3 |  |  | $ | 3 |  |  | $ | 21 |  |  | $ | 9 |
MSR asset value (b) | $ | 0.6 |  |  | $ | 0.6 |  |  | $ | 0.6 |  |  | $ | 1.0 |  |  | $ | 0.9 |  |  |  |  |
MSR capitalization value (in basis points) (b) | 50 |  |  | 47 |  |  | 51 |  |  | 83 |  |  | 72 |  |  |  |  |
Servicing income: (in millions) |  |  |  |  |  |  |  |  |  |  |  |  |
Servicing fees, net (c) | $ | 25 |  |  | $ | 36 |  |  | $ | 44 |  |  | $ | 39 |  |  | $ | 44 |  |  | $ | 105 |  |  | $ | 139 |
Mortgage servicing rights valuation, net of economic hedge | $ | 17 |  |  | $ | 20 |  |  | $ | 101 |  |  | $ | 9 |  |  | $ | 40 |  |  | $ | 138 |  |  | $ | 38 |
Residential mortgage loan statistics |  |  |  |  |  |  |  |  |  |  |  |  |
Loan origination volume (in billions) | $ | 4.0 |  |  | $ | 4.2 |  |  | $ | 3.2 |  |  | $ | 3.5 |  |  | $ | 3.4 |  |  | $ | 11.4 |  |  | $ | 8.0 |
Loan sale margin percentage | 3.62 | % |  | 3.67 | % |  | 3.16 | % |  | 2.42 | % |  | 2.59 | % |  | 3.51 | % |  | 2.41 | %
Percentage of originations represented by: |  |  |  |  |  |  |  |  |  |  |  |  |
Purchase volume (d) | 44 | % |  | 34 | % |  | 36 | % |  | 40 | % |  | 44 | % |  | 38 | % |  | 50 | %
Refinance volume | 56 | % |  | 66 | % |  | 64 | % |  | 60 | % |  | 56 | % |  | 62 | % |  | 50 | %
Other Information (b) |  |  |  |  |  |  |  |  |  |  |  |  |
Customer-related statistics (average) |  |  |  |  |  |  |  |  |  |  |  |  |
Non-teller deposit transactions (e) | 67 | % |  | 65 | % |  | 59 | % |  | 58 | % |  | 58 | % |  | 63 | % |  | 57 | %
Digital consumer customers (f) | 75 | % |  | 73 | % |  | 71 | % |  | 71 | % |  | 70 | % |  | 73 | % |  | 69 | %
Credit-related statistics |  |  |  |  |  |  |  |  |  |  |  |  |
Nonperforming assets | $ | 1,077 |  |  | $ | 1,037 |  |  | $ | 1,011 |  |  | $ | 1,046 |  |  | $ | 1,056 |  |  |  |  |
Net charge-offs - loans and leases | $ | 125 |  |  | $ | 142 |  |  | $ | 166 |  |  | $ | 154 |  |  | $ | 128 |  |  | $ | 433 |  |  | $ | 380 |
Other statistics |  |  |  |  |  |  |  |  |  |  |  |  |
ATMs | 9,058 |  |  | 9,058 |  |  | 9,048 |  |  | 9,091 |  |  | 9,102 |  |  |  |  |
Branches (g) | 2,207 |  |  | 2,256 |  |  | 2,277 |  |  | 2,296 |  |  | 2,310 |  |  |  |  |
Brokerage account client assets (in billions) (h) | $ | 55 |  |  | $ | 53 |  |  | $ | 49 |  |  | $ | 54 |  |  | $ | 52 |  |  |  |  |

(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 and nine months 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 |  | Nine months ended
| September 30 |  | June 30 |  | March 31 |  | December 31 |  | September 30 |  | September 30 |  | September 30
Dollars in millions | 2020 |  | 2020 |  | 2020 |  | 2019 |  | 2019 |  | 2020 |  | 2019
Income Statement |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income | $ | 1,025 |  |  | $ | 1,064 |  |  | $ | 966 |  |  | $ | 969 |  |  | $ | 930 |  |  | $ | 3,055 |  |  | $ | 2,745 |
Noninterest income | 723 |  |  | 726 |  |  | 694 |  |  | 646 |  |  | 654 |  |  | 2,143 |  |  | 1,891 |
Total revenue | 1,748 |  |  | 1,790 |  |  | 1,660 |  |  | 1,615 |  |  | 1,584 |  |  | 5,198 |  |  | 4,636 |
Provision for credit losses | 211 |  |  | 1,585 |  |  | 458 |  |  | 65 |  |  | 48 |  |  | 2,254 |  |  | 219 |
Noninterest expense | 666 |  |  | 673 |  |  | 722 |  |  | 726 |  |  | 703 |  |  | 2,061 |  |  | 2,087 |
Pretax earnings (loss) | 871 |  |  | (468 | ) |  | 480 |  |  | 824 |  |  | 833 |  |  | 883 |  |  | 2,330 |
Income taxes (benefit) | 201 |  |  | (110 | ) |  | 110 |  |  | 175 |  |  | 188 |  |  | 201 |  |  | 531 |
Earnings | $ | 670 |  |  | $ | (358 | ) |  | $ | 370 |  |  | $ | 649 |  |  | $ | 645 |  |  | $ | 682 |  |  | $ | 1,799 |
Average Balance Sheet |  |  |  |  |  |  |  |  |  |  |  |  |
Loans held for sale | $ | 904 |  |  | $ | 704 |  |  | $ | 395 |  |  | $ | 616 |  |  | $ | 720 |  |  | $ | 669 |  |  | $ | 467 |
Loans |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial | $ | 125,187 |  |  | $ | 138,992 |  |  | $ | 117,288 |  |  | $ | 114,113 |  |  | $ | 114,701 |  |  | $ | 127,149 |  |  | $ | 112,371 |
Commercial real estate | 27,511 |  |  | 27,106 |  |  | 26,589 |  |  | 26,586 |  |  | 26,570 |  |  | 27,070 |  |  | 26,257 |
Equipment lease financing | 6,772 |  |  | 7,036 |  |  | 7,066 |  |  | 7,200 |  |  | 7,272 |  |  | 6,957 |  |  | 7,273 |
Total commercial | 159,470 |  |  | 173,134 |  |  | 150,943 |  |  | 147,899 |  |  | 148,543 |  |  | 161,176 |  |  | 145,901 |
Consumer | 11 |  |  | 8 |  |  | 9 |  |  | 11 |  |  | 13 |  |  | 9 |  |  | 16 |
Total loans | $ | 159,481 |  |  | $ | 173,142 |  |  | $ | 150,952 |  |  | $ | 147,910 |  |  | $ | 148,556 |  |  | $ | 161,185 |  |  | $ | 145,917 |
Total assets | $ | 183,266 |  |  | $ | 199,254 |  |  | $ | 172,502 |  |  | $ | 167,555 |  |  | $ | 168,193 |  |  | $ | 185,001 |  |  | $ | 163,126 |
Deposits |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing demand | $ | 56,433 |  |  | $ | 53,157 |  |  | $ | 40,651 |  |  | $ | 39,513 |  |  | $ | 38,740 |  |  | $ | 50,104 |  |  | $ | 39,016 |
Interest-bearing demand | 29,730 |  |  | 27,674 |  |  | 21,101 |  |  | 20,851 |  |  | 20,523 |  |  | 26,182 |  |  | 19,027 |
Money market | 38,015 |  |  | 36,595 |  |  | 28,468 |  |  | 30,264 |  |  | 29,456 |  |  | 34,373 |  |  | 27,358 |
Other | 8,956 |  |  | 9,546 |  |  | 7,868 |  |  | 7,916 |  |  | 7,100 |  |  | 8,789 |  |  | 6,258 |
Total deposits | $ | 133,134 |  |  | $ | 126,972 |  |  | $ | 98,088 |  |  | $ | 98,544 |  |  | $ | 95,819 |  |  | $ | 119,448 |  |  | $ | 91,659 |
Performance Ratios |  |  |  |  |  |  |  |  |  |  |  |  |
Return on average assets | 1.45 | % |  | (.72 | )% |  | .87 | % |  | 1.54 | % |  | 1.52 | % |  | .49 | % |  | 1.47 | %
Noninterest income to total revenue | 41 | % |  | 41 | % |  | 42 | % |  | 40 | % |  | 41 | % |  | 41 | % |  | 41 | %
Efficiency | 38 | % |  | 38 | % |  | 43 | % |  | 45 | % |  | 44 | % |  | 40 | % |  | 45 | %
Other Information |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated revenue from: |  |  |  |  |  |  |  |  |  |  |  |  |
Treasury Management (b) | $ | 452 |  |  | $ | 469 |  |  | $ | 491 |  |  | $ | 494 |  |  | $ | 460 |  |  | $ | 1,412 |  |  | $ | 1,372 |
Capital Markets (b) | $ | 345 |  |  | $ | 388 |  |  | $ | 344 |  |  | $ | 291 |  |  | $ | 290 |  |  | $ | 1,077 |  |  | $ | 849 |
Commercial mortgage banking activities |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial mortgage loans held for sale (c) | $ | 46 |  |  | $ | 42 |  |  | $ | 29 |  |  | $ | 24 |  |  | $ | 38 |  |  | $ | 117 |  |  | $ | 73 |
Commercial mortgage loan servicing income (d) | 76 |  |  | 67 |  |  | 69 |  |  | 71 |  |  | 71 |  |  | 212 |  |  | 190 |
Commercial mortgage servicing rights valuation, net of economic hedge (e) | 16 |  |  | 22 |  |  | 20 |  |  | 2 |  |  | 1 |  |  | 58 |  |  | 17 |
Total | $ | 138 |  |  | $ | 131 |  |  | $ | 118 |  |  | $ | 97 |  |  | $ | 110 |  |  | $ | 387 |  |  | $ | 280 |
MSR asset value (f) | $ | 515 |  |  | $ | 490 |  |  | $ | 477 |  |  | $ | 649 |  |  | $ | 595 |  |  |  |  |
Average Loans by C&IB business |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate Banking | $ | 81,617 |  |  | $ | 91,634 |  |  | $ | 78,057 |  |  | $ | 75,665 |  |  | $ | 74,883 |  |  | $ | 83,762 |  |  | $ | 73,460 |
Real Estate | 40,592 |  |  | 42,124 |  |  | 37,368 |  |  | 36,908 |  |  | 38,172 |  |  | 40,030 |  |  | 37,231 |
Business Credit | 21,845 |  |  | 23,943 |  |  | 23,251 |  |  | 22,900 |  |  | 22,824 |  |  | 23,009 |  |  | 22,480 |
Commercial Banking | 11,770 |  |  | 10,708 |  |  | 7,784 |  |  | 7,793 |  |  | 7,947 |  |  | 10,093 |  |  | 8,048 |
Other | 3,657 |  |  | 4,733 |  |  | 4,492 |  |  | 4,644 |  |  | 4,730 |  |  | 4,291 |  |  | 4,698 |
Total average loans | $ | 159,481 |  |  | $ | 173,142 |  |  | $ | 150,952 |  |  | $ | 147,910 |  |  | $ | 148,556 |  |  | $ | 161,185 |  |  | $ | 145,917 |
Credit-related statistics |  |  |  |  |  |  |  |  |  |  |  |  |
Nonperforming assets (f) | $ | 832 |  |  | $ | 674 |  |  | $ | 508 |  |  | $ | 444 |  |  | $ | 526 |  |  |  |  |
Net charge-offs - loans and leases | $ | 32 |  |  | $ | 99 |  |  | $ | 50 |  |  | $ | 47 |  |  | $ | 30 |  |  | $ | 181 |  |  | $ | 58 |

(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 |  |  | Nine months ended
| September 30 |  | June 30 |  | March 31 |  | December 31 |  | September 30 |  |  | September 30 |  | September 30
Dollars in millions, except as noted | 2020 |  | 2020 |  | 2020 |  | 2019 |  | 2019 |  |  | 2020 |  | 2019
Income Statement |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income | $ | 89 |  |  | $ | 89 |  |  | $ | 88 |  |  | $ | 80 |  |  | $ | 70 |  |  |  | $ | 266 |  |  | $ | 208 |
Noninterest income | 221 |  |  | 204 |  |  | 204 |  |  | 272 |  |  | 216 |  |  |  | 629 |  |  | 719 |
Total revenue | 310 |  |  | 293 |  |  | 292 |  |  | 352 |  |  | 286 |  |  |  | 895 |  |  | 927 |
Provision for (recapture of) credit losses | (19 | ) |  | 39 |  |  | 3 |  |  | 1 |  |  | (1 | ) |  |  | 23 |  |  | (2 | )
Noninterest expense | 211 |  |  | 217 |  |  | 219 |  |  | 232 |  |  | 228 |  |  |  | 647 |  |  | 707 |
Pretax earnings | 118 |  |  | 37 |  |  | 70 |  |  | 119 |  |  | 59 |  |  |  | 225 |  |  | 222 |
Income taxes | 27 |  |  | 9 |  |  | 16 |  |  | 28 |  |  | 13 |  |  |  | 52 |  |  | 51 |
Earnings | $ | 91 |  |  | $ | 28 |  |  | $ | 54 |  |  | $ | 91 |  |  | $ | 46 |  |  |  | $ | 173 |  |  | $ | 171 |
Average Balance Sheet |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate | $ | 2,976 |  |  | $ | 2,636 |  |  | $ | 2,385 |  |  | $ | 2,193 |  |  | $ | 1,980 |  |  |  | $ | 2,667 |  |  | $ | 1,833 |
Other consumer | 4,065 |  |  | 3,975 |  |  | 4,052 |  |  | 4,145 |  |  | 4,207 |  |  |  | 4,031 |  |  | 4,261 |
Total consumer | $ | 7,041 |  |  | $ | 6,611 |  |  | $ | 6,437 |  |  | $ | 6,338 |  |  | $ | 6,187 |  |  |  | $ | 6,698 |  |  | $ | 6,094 |
Commercial | $ | 810 |  |  | $ | 883 |  |  | $ | 856 |  |  | $ | 793 |  |  | $ | 758 |  |  |  | $ | 849 |  |  | $ | 747 |
Total loans | $ | 7,851 |  |  | $ | 7,494 |  |  | $ | 7,293 |  |  | $ | 7,131 |  |  | $ | 6,945 |  |  |  | $ | 7,547 |  |  | $ | 6,841 |
Total assets | $ | 8,361 |  |  | $ | 7,958 |  |  | $ | 7,801 |  |  | $ | 7,697 |  |  | $ | 7,331 |  |  |  | $ | 8,041 |  |  | $ | 7,247 |
Deposits |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing demand | $ | 1,692 |  |  | $ | 1,421 |  |  | $ | 1,468 |  |  | $ | 1,407 |  |  | $ | 1,299 |  |  |  | $ | 1,528 |  |  | $ | 1,344 |
Interest-bearing demand | 8,101 |  |  | 7,742 |  |  | 6,850 |  |  | 6,846 |  |  | 3,393 |  |  |  | 7,566 |  |  | 3,121 |
Money market | 1,542 |  |  | 1,597 |  |  | 1,709 |  |  | 1,773 |  |  | 1,740 |  |  |  | 1,616 |  |  | 1,852 |
Savings | 7,243 |  |  | 7,398 |  |  | 7,197 |  |  | 6,950 |  |  | 6,302 |  |  |  | 7,279 |  |  | 5,969 |
Other | 554 |  |  | 722 |  |  | 847 |  |  | 898 |  |  | 893 |  |  |  | 707 |  |  | 797 |
Total deposits | $ | 19,132 |  |  | $ | 18,880 |  |  | $ | 18,071 |  |  | $ | 17,874 |  |  | $ | 13,627 |  |  |  | $ | 18,696 |  |  | $ | 13,083 |
Performance Ratios |  |  |  |  |  |  |  |  |  |  |  |  |  |
Return on average assets | 4.32 | % |  | 1.41 | % |  | 2.81 | % |  | 4.69 | % |  | 2.49 | % |  |  | 2.88 | % |  | 3.15 | %
Noninterest income to total revenue | 71 | % |  | 70 | % |  | 70 | % |  | 77 | % |  | 76 | % |  |  | 70 | % |  | 78 | %
Efficiency | 68 | % |  | 74 | % |  | 75 | % |  | 66 | % |  | 80 | % |  |  | 72 | % |  | 76 | %
Other Information |  |  |  |  |  |  |  |  |  |  |  |  |  |
Nonperforming assets (b) | $ | 39 |  |  | $ | 38 |  |  | $ | 34 |  |  | $ | 39 |  |  | $ | 42 |  |  |  |  |  |
Net charge-offs (recoveries) - loans and leases | $ | 1 |  |  | — |  |  | $ | (1 | ) |  | $ | 4 |  |  | — |  |  |  | — |  |  | $ | 1 |
Client Assets Under Administration (in billions) (b) (c) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Discretionary client assets under management | $ | 158 |  |  | $ | 151 |  |  | $ | 136 |  |  | $ | 154 |  |  | $ | 163 |  |  |  |  |  |
Nondiscretionary client assets under administration | 142 |  |  | 138 |  |  | 128 |  |  | 143 |  |  | 135 |  |  |  |  |  |
Total | $ | 300 |  |  | $ | 289 |  |  | $ | 264 |  |  | $ | 297 |  |  | $ | 298 |  |  |  |  |  |
Discretionary client assets under management |  |  |  |  |  |  |  |  |  |  |  |  |  |
Personal | $ | 99 |  |  | $ | 94 |  |  | $ | 84 |  |  | $ | 99 |  |  | $ | 98 |  |  |  |  |  |
Institutional | 59 |  |  | 57 |  |  | 52 |  |  | 55 |  |  | 65 |  |  |  |  |  |
Total | $ | 158 |  |  | $ | 151 |  |  | $ | 136 |  |  | $ | 154 |  |  | $ | 163 |  |  |  |  |  |

(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.