EX-99.1 2 q22021financialsupplement.htm EX-99.1
Exhibit 99.1
THE PNC FINANCIAL SERVICES GROUP, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2021
(Unaudited)

THE PNC FINANCIAL SERVICES GROUP, INC.
FINANCIAL SUPPLEMENT
SECOND QUARTER 2021
(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
Glossary of Terms | 13-15

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on July 14, 2021. We have reclassified certain prior period amounts to be consistent with the current period presentation, which we believe is more meaningful to readers of our consolidated financial statements. This information speaks only as of the particular date or dates included in the schedules. We do not undertake any obligation to, and disclaim any duty to, correct or update any of the information provided in this Financial Supplement. Our future financial performance is subject to risks and uncertainties as described in our United States Securities and Exchange Commission (SEC) filings.
BUSINESS
PNC is one of the largest diversified financial services companies in the United States (U.S.) and is headquartered in Pittsburgh, Pennsylvania. PNC has businesses engaged in retail banking, including residential mortgage, corporate and institutional banking and asset management, providing many of its products and services nationally. PNC's retail branch network is located primarily in markets across the Mid-Atlantic, Midwest, Southeast and Southwest. PNC also has strategic international offices in four countries outside the U.S.
PNC has three reportable business segments: Retail Banking, Corporate & Institutional Banking, and Asset Management Group. Business segment results and a description of each business will be included in PNC's second quarter 2021 Form 10-Q.
ACQUISITION OF BBVA USA BANCSHARES, INC.
On June 1, 2021, PNC acquired BBVA USA Bancshares Inc. (BBVA), a U.S. financial holding company conducting its business operations primarily through its U.S. banking subsidiary, BBVA USA. BBVA USA has more than 600 branches in Texas, Alabama, Arizona, California, Florida, Colorado and New Mexico. PNC paid $11.5 billion in cash as consideration for the acquisition, and added $82.2 billion of deposits and $60.5 billion of loans to PNC's Consolidated Balance Sheet as a result of the acquisition. PNC's second quarter earnings results reflect BBVA's acquired business operations for the month of June 2021 and PNC's balance sheet dated June 30, 2021 includes BBVA's balances. PNC's previously disclosed amounts do not include BBVA amounts. PNC's second quarter 2021 Form 10-Q will include additional information on this acquisition.
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 $0.2 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 Second Quarter 2021 Financial Supplement (Unaudited)
Financial Supplement Table Reference
Table | Description | Page
1 | Consolidated Income Statement | 1
2 | Consolidated Balance Sheet | 2
3 | Average Consolidated Balance Sheet | 3
4 | Details of Net Interest Margin | 4
5 | Per Share Related Information | 5
6 | Details of Loans | 6
7 | Change in Allowance for Loan and Lease Losses | 7
8 | Components of the Provision for (Recapture of) Credit Losses Under CECL | 8
9 | Allowance for Credit Losses by Loan Class | 8
10 | Nonperforming Assets by Type | 9
11 | Change in Nonperforming Assets | 10
12 | Largest Individual Nonperforming Assets | 10
13 | Accruing Loans Past Due 30 to 59 Days | 11
14 | Accruing Loans Past Due 60 to 89 Days | 12
15 | Accruing Loans Past Due 90 Days or More | 12

THE PNC FINANCIAL SERVICES GROUP, INC. | Page 1

Table 1: Consolidated Income Statement (Unaudited)

| Three months ended |  |  | Six months ended
| June 30 |  | March 31 |  | December 31 |  | September 30 |  | June 30 |  |  | June 30 |  | June 30
In millions, except per share data | 2021 |  | 2021 |  | 2020 |  | 2020 |  | 2020 |  |  | 2021 |  | 2020
Interest Income |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans | $ | 2,160 |  |  | $ | 1,996 |  |  | $ | 2,074 |  |  | $ | 2,116 |  |  | $ | 2,257 |  |  |  | $ | 4,156 |  |  | $ | 4,737 |
Investment securities | 469 |  |  | 421 |  |  | 442 |  |  | 490 |  |  | 527 |  |  |  | 890 |  |  | 1,109 |
Other | 72 |  |  | 66 |  |  | 60 |  |  | 70 |  |  | 71 |  |  |  | 138 |  |  | 209 |
Total interest income | 2,701 |  |  | 2,483 |  |  | 2,576 |  |  | 2,676 |  |  | 2,855 |  |  |  | 5,184 |  |  | 6,055 |
Interest Expense |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits | 30 |  |  | 40 |  |  | 53 |  |  | 74 |  |  | 141 |  |  |  | 70 |  |  | 516 |
Borrowed funds | 90 |  |  | 95 |  |  | 99 |  |  | 118 |  |  | 187 |  |  |  | 185 |  |  | 501 |
Total interest expense | 120 |  |  | 135 |  |  | 152 |  |  | 192 |  |  | 328 |  |  |  | 255 |  |  | 1,017 |
Net interest income | 2,581 |  |  | 2,348 |  |  | 2,424 |  |  | 2,484 |  |  | 2,527 |  |  |  | 4,929 |  |  | 5,038 |
Noninterest Income |  |  |  |  |  |  |  |  |  |  |  |  |  |
Asset management | 239 |  |  | 226 |  |  | 221 |  |  | 215 |  |  | 199 |  |  |  | 465 |  |  | 400 |
Consumer services | 457 |  |  | 384 |  |  | 387 |  |  | 390 |  |  | 330 |  |  |  | 841 |  |  | 707 |
Corporate services | 688 |  |  | 555 |  |  | 650 |  |  | 479 |  |  | 512 |  |  |  | 1,243 |  |  | 1,038 |
Residential mortgage | 103 |  |  | 105 |  |  | 99 |  |  | 137 |  |  | 158 |  |  |  | 208 |  |  | 368 |
Service charges on deposits | 131 |  |  | 119 |  |  | 134 |  |  | 119 |  |  | 79 |  |  |  | 250 |  |  | 247 |
Other (a) | 468 |  |  | 483 |  |  | 293 |  |  | 457 |  |  | 271 |  |  |  | 951 |  |  | 614 |
Total noninterest income | 2,086 |  |  | 1,872 |  |  | 1,784 |  |  | 1,797 |  |  | 1,549 |  |  |  | 3,958 |  |  | 3,374 |
Total revenue | 4,667 |  |  | 4,220 |  |  | 4,208 |  |  | 4,281 |  |  | 4,076 |  |  |  | 8,887 |  |  | 8,412 |
Provision For (Recapture of) Credit Losses | 302 |  |  | (551) |  |  | (254) |  |  | 52 |  |  | 2,463 |  |  |  | (249) |  |  | 3,377 |
Noninterest Expense |  |  |  |  |  |  |  |  |  |  |  |  |  |
Personnel | 1,640 |  |  | 1,477 |  |  | 1,521 |  |  | 1,410 |  |  | 1,373 |  |  |  | 3,117 |  |  | 2,742 |
Occupancy | 217 |  |  | 215 |  |  | 215 |  |  | 205 |  |  | 199 |  |  |  | 432 |  |  | 406 |
Equipment | 326 |  |  | 293 |  |  | 296 |  |  | 292 |  |  | 301 |  |  |  | 619 |  |  | 588 |
Marketing | 74 |  |  | 45 |  |  | 64 |  |  | 67 |  |  | 47 |  |  |  | 119 |  |  | 105 |
Other | 793 |  |  | 544 |  |  | 612 |  |  | 557 |  |  | 595 |  |  |  | 1,337 |  |  | 1,217 |
Total noninterest expense | 3,050 |  |  | 2,574 |  |  | 2,708 |  |  | 2,531 |  |  | 2,515 |  |  |  | 5,624 |  |  | 5,058 |
Income (loss) from continuing operations before income taxes and noncontrolling interests | 1,315 |  |  | 2,197 |  |  | 1,754 |  |  | 1,698 |  |  | (902) |  |  |  | 3,512 |  |  | (23) |
Income taxes (benefit) from continuing operations | 212 |  |  | 371 |  |  | 298 |  |  | 166 |  |  | (158) |  |  |  | 583 |  |  | (38) |
Net income (loss) from continuing operations | 1,103 |  |  | 1,826 |  |  | 1,456 |  |  | 1,532 |  |  | (744) |  |  |  | 2,929 |  |  | 15 |
Income from discontinued operations before taxes |  |  |  |  |  |  |  |  | 5,596 |  |  |  |  |  | 5,777 |
Income taxes from discontinued operations |  |  |  |  |  |  |  |  | 1,197 |  |  |  |  |  | 1,222 |
Net income from discontinued operations |  |  |  |  |  |  |  |  | 4,399 |  |  |  |  |  | 4,555 |
Net income | 1,103 |  |  | 1,826 |  |  | 1,456 |  |  | 1,532 |  |  | 3,655 |  |  |  | 2,929 |  |  | 4,570 |
Less: Net income attributable to noncontrolling interests | 12 |  |  | 10 |  |  | 14 |  |  | 13 |  |  | 7 |  |  |  | 22 |  |  | 14 |
Preferred stock dividends (b) | 48 |  |  | 57 |  |  | 48 |  |  | 63 |  |  | 55 |  |  |  | 105 |  |  | 118 |
Preferred stock discount accretion and redemptions | 1 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | 1 |  |  |  | 2 |  |  | 2 |
Net income attributable to common shareholders | $ | 1,042 |  |  | $ | 1,758 |  |  | $ | 1,393 |  |  | $ | 1,455 |  |  | $ | 3,592 |  |  |  | $ | 2,800 |  |  | $ | 4,436 |
Earnings Per Common Share |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic earnings (loss) from continuing operations | $ | 2.43 |  |  | $ | 4.11 |  |  | $ | 3.26 |  |  | $ | 3.40 |  |  | $ | (1.90) |  |  |  | $ | 6.54 |  |  | $ | (0.29) |
Basic earnings from discontinued operations |  |  |  |  |  |  |  |  | 10.28 |  |  |  |  |  | 10.60 |
Total basic earnings | $ | 2.43 |  |  | $ | 4.11 |  |  | $ | 3.26 |  |  | $ | 3.40 |  |  | $ | 8.40 |  |  |  | $ | 6.54 |  |  | $ | 10.33 |
Diluted earnings (loss) from continuing operations | $ | 2.43 |  |  | $ | 4.10 |  |  | $ | 3.26 |  |  | $ | 3.39 |  |  | $ | (1.90) |  |  |  | $ | 6.53 |  |  | $ | (0.29) |
Diluted earnings from discontinued operations |  |  |  |  |  |  |  |  | 10.28 |  |  |  |  |  | 10.59 |
Total diluted earnings | $ | 2.43 |  |  | $ | 4.10 |  |  | $ | 3.26 |  |  | $ | 3.39 |  |  | $ | 8.40 |  |  |  | $ | 6.53 |  |  | $ | 10.32 |
Average Common Shares Outstanding |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic | 427 |  |  | 426 |  |  | 425 |  |  | 426 |  |  | 426 |  |  |  | 426 |  |  | 428 |
Diluted | 427 |  |  | 426 |  |  | 426 |  |  | 426 |  |  | 426 |  |  |  | 427 |  |  | 428 |
Efficiency | 65 | % |  | 61 | % |  | 64 | % |  | 59 | % |  | 62 | % |  |  | 63 | % |  | 60 | %
Noninterest income to total revenue | 45 | % |  | 44 | % |  | 42 | % |  | 42 | % |  | 38 | % |  |  | 45 | % |  | 40 | %
Effective tax rate from continuing operations (c) | 16.1 | % |  | 16.9 | % |  | 17.0 | % |  | 9.8 | % |  | 17.5 | % |  |  | 16.6 | % |  | 165.2 | %

(a)Includes net gains on sales of securities of $10 million, $25 million, $51 million, $32 million and $40 million for the quarters ended June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively. Amounts for the six months ended June 30, 2021 and June 30, 2020 were $35 million and $222 million, respectively.
(b)Dividends are payable quarterly other than Series O, Series R and Series S preferred stock, which are payable semiannually, with the Series O payable in different quarters than the Series R and Series S preferred stock.
(c)The effective income tax rates are generally lower than the statutory rate due to the relationship of pretax income to tax credits and earnings that are not subject to tax.

THE PNC FINANCIAL SERVICES GROUP, INC. | Page 2

Table 2: Consolidated Balance Sheet (Unaudited)

| June 30 |  | March 31 |  | December 31 |  | September 30 |  | June 30
In millions, except par value | 2021 |  | 2021 |  | 2020 |  | 2020 |  | 2020
Assets |  |  |  |  |  |  |  |  |
Cash and due from banks | $ | 8,724 |  |  | $ | 7,455 |  |  | $ | 7,017 |  |  | $ | 6,629 |  |  | $ | 6,338 |
Interest-earning deposits with banks (a) | 72,447 |  |  | 86,161 |  |  | 85,173 |  |  | 70,959 |  |  | 50,233 |
Loans held for sale (b) | 2,227 |  |  | 1,967 |  |  | 1,597 |  |  | 1,787 |  |  | 1,443 |
Investment securities – available for sale | 125,058 |  |  | 96,799 |  |  | 87,358 |  |  | 89,747 |  |  | 97,052 |
Investment securities – held to maturity | 1,485 |  |  | 1,456 |  |  | 1,441 |  |  | 1,438 |  |  | 1,441 |
Loans (b) | 294,704 |  |  | 237,013 |  |  | 241,928 |  |  | 249,279 |  |  | 258,236 |
Allowance for loan and lease losses | (5,730) |  |  | (4,714) |  |  | (5,361) |  |  | (5,751) |  |  | (5,928) |
Net loans | 288,974 |  |  | 232,299 |  |  | 236,567 |  |  | 243,528 |  |  | 252,308 |
Equity investments | 7,521 |  |  | 6,386 |  |  | 6,052 |  |  | 4,938 |  |  | 4,943 |
Mortgage servicing rights | 1,793 |  |  | 1,680 |  |  | 1,242 |  |  | 1,113 |  |  | 1,067 |
Goodwill | 10,958 |  |  | 9,317 |  |  | 9,233 |  |  | 9,233 |  |  | 9,233 |
Other (b) | 35,025 |  |  | 30,894 |  |  | 30,999 |  |  | 32,445 |  |  | 34,920 |
Total assets | $ | 554,212 |  |  | $ | 474,414 |  |  | $ | 466,679 |  |  | $ | 461,817 |  |  | $ | 458,978 |
Liabilities |  |  |  |  |  |  |  |  |
Deposits |  |  |  |  |  |  |  |  |
Noninterest-bearing | $ | 154,190 |  |  | $ | 120,641 |  |  | $ | 112,637 |  |  | $ | 107,281 |  |  | $ | 99,458 |
Interest-bearing | 298,693 |  |  | 254,426 |  |  | 252,708 |  |  | 247,798 |  |  | 246,539 |
Total deposits | 452,883 |  |  | 375,067 |  |  | 365,345 |  |  | 355,079 |  |  | 345,997 |
Borrowed funds |  |  |  |  |  |  |  |  |
Federal Home Loan Bank borrowings |  |  | 1,500 |  |  | 3,500 |  |  | 5,500 |  |  | 8,500 |
Bank notes and senior debt | 24,408 |  |  | 22,139 |  |  | 24,271 |  |  | 26,839 |  |  | 27,704 |
Subordinated debt | 7,120 |  |  | 6,241 |  |  | 6,403 |  |  | 6,465 |  |  | 6,500 |
Other (b) | 3,285 |  |  | 3,150 |  |  | 3,021 |  |  | 3,306 |  |  | 4,322 |
Total borrowed funds | 34,813 |  |  | 33,030 |  |  | 37,195 |  |  | 42,110 |  |  | 47,026 |
Allowance for unfunded lending related commitments | 645 |  |  | 507 |  |  | 584 |  |  | 689 |  |  | 662 |
Accrued expenses and other liabilities | 11,186 |  |  | 11,931 |  |  | 9,514 |  |  | 10,629 |  |  | 12,345 |
Total liabilities | 499,527 |  |  | 420,535 |  |  | 412,638 |  |  | 408,507 |  |  | 406,030 |
Equity |  |  |  |  |  |  |  |  |
Preferred stock (c) |  |  |  |  |  |  |  |  |
Common stock - $5 par value |  |  |  |  |  |  |  |  |
Authorized 800 shares, issued 543, 543, 543, 542, and 542 shares | 2,713 |  |  | 2,713 |  |  | 2,713 |  |  | 2,712 |  |  | 2,712 |
Capital surplus | 15,928 |  |  | 15,879 |  |  | 15,884 |  |  | 15,836 |  |  | 16,284 |
Retained earnings | 48,663 |  |  | 48,113 |  |  | 46,848 |  |  | 45,947 |  |  | 44,986 |
Accumulated other comprehensive income | 1,463 |  |  | 1,290 |  |  | 2,770 |  |  | 2,997 |  |  | 3,069 |
Common stock held in treasury at cost:118, 118, 119, 118 and 117 shares | (14,140) |  |  | (14,146) |  |  | (14,205) |  |  | (14,216) |  |  | (14,128) |
Total shareholders’ equity | 54,627 |  |  | 53,849 |  |  | 54,010 |  |  | 53,276 |  |  | 52,923 |
Noncontrolling interests | 58 |  |  | 30 |  |  | 31 |  |  | 34 |  |  | 25 |
Total equity | 54,685 |  |  | 53,879 |  |  | 54,041 |  |  | 53,310 |  |  | 52,948 |
Total liabilities and equity | $ | 554,212 |  |  | $ | 474,414 |  |  | $ | 466,679 |  |  | $ | 461,817 |  |  | $ | 458,978 |

(a)Amounts include balances held with the Federal Reserve Bank of $71.9 billion, $85.8 billion, $84.9 billion, $70.6 billion and $50.0 billion as of June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively.
(b)Amounts include assets and liabilities for which PNC has elected the fair value option. Our first quarter 2021 Form 10-Q included, and our second quarter 2021 Form 10-Q will include, additional information regarding these items.
(c)Par value less than $0.5 million at each date.

THE PNC FINANCIAL SERVICES GROUP, INC. | Page 3

Table 3: Average Consolidated Balance Sheet (Unaudited) (a) (c) |  |  |  |  |
| Three months ended |  |  | Six months ended
| June 30 |  | March 31 |  | December 31 |  | September 30 |  | June 30 |  |  | June 30 |  | June 30
In millions | 2021 |  | 2021 |  | 2020 |  | 2020 |  | 2020 |  |  | 2021 |  | 2020
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-earning assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment securities |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency | $ | 56,042 |  |  | $ | 45,298 |  |  | $ | 48,036 |  |  | $ | 52,215 |  |  | $ | 52,500 |  |  |  | $ | 50,700 |  |  | $ | 51,068 |
Non-agency | 1,142 |  |  | 1,236 |  | 1,337 |  | 1,437 |  | 1,529 |  |  | 1,189 |  | 1,573 |
Commercial mortgage-backed | 6,465 |  | 6,241 |  | 6,568 |  | 6,927 |  | 7,232 |  |  | 6,354 |  | 6,983 |
Asset-backed | 5,855 |  | 5,304 |  | 5,017 |  | 5,033 |  | 5,309 |  |  | 5,581 |  | 5,156 |
U.S. Treasury and government agencies | 32,419 |  | 22,309 |  | 18,783 |  | 18,724 |  | 15,457 |  |  | 27,392 |  | 15,697 |
Other | 5,107 |  | 4,561 |  | 4,561 |  | 4,723 |  | 4,952 |  |  | 4,835 |  | 4,488 |
Total securities available for sale | 107,030 |  | 84,949 |  | 84,302 |  | 89,059 |  | 86,979 |  |  | 96,051 |  | 84,965
Securities held to maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |
Asset-backed |  |  |  |  |  |  |  |  | 22 |  |  |  |  | 37 |
U.S. Treasury and government agencies | 802 |  | 797 |  | 793 |  | 788 |  | 783 |  |  | 800 |  | 781 |
Other | 671 |  | 650 |  | 650 |  | 655 |  | 646 |  |  | 660 |  | 643 |
Total securities held to maturity | 1,473 |  | 1,447 |  | 1,443 |  | 1,443 |  | 1,451 |  |  | 1,460 |  | 1,461
Total investment securities | 108,503 |  | 86,396 |  | 85,745 |  | 90,502 |  | 88,430 |  |  | 97,511 |  | 86,426
Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial | 137,892 |  | 129,996 |  | 134,944 |  | 139,795 |  | 153,595 |  |  | 133,966 |  | 141,159 |
Commercial real estate | 31,611 |  | 28,598 |  | 28,991 |  | 29,081 |  | 28,707 |  |  | 30,113 |  | 28,491 |
Equipment lease financing | 6,332 |  | 6,332 |  | 6,380 |  | 6,771 |  | 7,035 |  |  | 6,332 |  | 7,051 |
Consumer | 52,575 |  | 50,904 |  | 52,872 |  | 54,692 |  | 56,485 |  |  | 51,744 |  | 57,082 |
Residential real estate | 27,197 |  | 22,305 |  | 22,638 |  | 22,753 |  | 22,292 |  |  | 24,764 |  | 22,060 |
Total loans | 255,607 |  | 238,135 |  | 245,825 |  | 253,092 |  | 268,114 |  |  | 246,919 |  | 255,843
Interest-earning deposits with banks (b) | 78,522 |  | 85,410 |  | 76,374 |  | 60,327 |  | 34,600 |  |  | 81,947 |  | 26,085 |
Other interest-earning assets | 8,079 |  | 7,829 |  | 8,134 |  | 9,752 |  | 10,867 |  |  | 7,955 |  | 10,167 |
Total interest-earning assets | 450,711 |  | 417,770 |  | 416,078 |  | 413,673 |  | 402,011 |  |  | 434,332 |  | 378,521
Noninterest-earning assets | 53,718 |  | 50,450 |  | 48,901 |  | 48,466 |  | 55,302 |  |  | 52,093 |  | 56,353 |
Total assets | $ | 504,429 |  |  | $ | 468,220 |  |  | $ | 464,979 |  |  | $ | 462,139 |  |  | $ | 457,313 |  |  |  | $ | 486,425 |  |  | $ | 434,874 |
Liabilities and Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing deposits |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market | $ | 64,990 |  |  | $ | 59,083 |  |  | $ | 62,621 |  |  | $ | 63,598 |  |  | $ | 61,346 |  |  |  | $ | 62,053 |  |  | $ | 57,317 |
Demand | 99,091 |  | 91,619 |  | 88,026 |  | 87,226 |  | 82,881 |  |  | 95,376 |  | 76,906 |
Savings | 87,307 |  | 82,926 |  | 79,430 |  | 77,479 |  | 75,345 |  |  | 85,129 |  | 72,661 |
Time deposits | 18,048 |  | 18,449 |  | 19,448 |  | 20,248 |  | 21,873 |  |  | 18,246 |  | 21,506 |
Total interest-bearing deposits | 269,436 |  | 252,077 |  | 249,525 |  | 248,551 |  | 241,445 |  |  | 260,804 |  | 228,390
Borrowed funds |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal Home Loan Bank borrowings | 265 |  | 2,411 |  | 4,761 |  | 7,196 |  | 12,559 |  |  | 1,332 |  | 13,000 |
Bank notes and senior debt | 22,620 |  | 22,799 |  | 24,022 |  | 25,858 |  | 28,298 |  |  | 22,709 |  | 29,143 |
Subordinated debt | 6,218 |  | 5,929 |  | 5,936 |  | 5,936 |  | 5,937 |  |  | 6,074 |  | 5,935 |
Other | 5,046 |  | 4,057 |  | 3,433 |  | 4,354 |  | 6,435 |  |  | 4,555 |  | 7,131 |
Total borrowed funds | 34,149 |  | 35,196 |  | 38,152 |  | 43,344 |  | 53,229 |  |  | 34,670 |  | 55,209
Total interest-bearing liabilities | 303,585 |  | 287,273 |  | 287,677 |  | 291,895 |  | 294,674 |  |  | 295,474 |  | 283,599
Noninterest-bearing liabilities and equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing deposits | 132,283 |  | 113,299 |  | 109,878 |  | 101,931 |  | 93,776 |  |  | 122,843 |  | 84,086 |
Accrued expenses and other liabilities | 14,755 |  | 14,258 |  | 14,348 |  | 15,341 |  | 16,989 |  |  | 14,508 |  | 16,712 |
Equity | 53,806 |  | 53,390 |  | 53,076 |  | 52,972 |  | 51,874 |  |  | 53,600 |  | 50,477 |
Total liabilities and equity | $ | 504,429 |  |  | $ | 468,220 |  |  | $ | 464,979 |  |  | $ | 462,139 |  |  | $ | 457,313 |  |  |  | $ | 486,425 |  |  | $ | 434,874 |

(a)Calculated using average daily balances.
(b)Amounts include average balances held with the Federal Reserve Bank of Cleveland of $78.3 billion, $85.2 billion, $76.1 billion, $60.0 billion and $34.2 billion for the three months ended June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, and $81.7 billion and $25.8 billion for the six months ended June 30, 2021 and June 30, 2020, respectively.
(c)Second quarter results reflect BBVA's acquired business operations for the month of June. Previously disclosed amounts do not include BBVA amounts.

THE PNC FINANCIAL SERVICES GROUP, INC. | Page 4

Table 4: Details of Net Interest Margin (Unaudited) (c) |  |  |  |  |
| Three months ended |  |  | Six months ended
| June 30 |  | March 31 |  | December 31 |  | September 30 |  | June 30 |  |  | June 30 |  | June 30
| 2021 |  | 2021 |  | 2020 |  | 2020 |  | 2020 |  |  | 2021 |  | 2020
Average yields/rates (a) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Yield on interest-earning assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment securities |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency | 1.61 | % |  | 1.72 | % |  | 1.81 | % |  | 2.03 | % |  | 2.29 | % |  |  | 1.66 | % |  | 2.45 | %
Non-agency | 7.85 | % |  | 7.24 | % |  | 7.15 | % |  | 7.26 | % |  | 7.13 | % |  |  | 7.54 | % |  | 7.51 | %
Commercial mortgage-backed | 2.49 | % |  | 2.58 | % |  | 2.66 | % |  | 2.50 | % |  | 2.59 | % |  |  | 2.54 | % |  | 2.76 | %
Asset-backed | 2.07 | % |  | 1.84 | % |  | 2.04 | % |  | 2.44 | % |  | 2.60 | % |  |  | 1.96 | % |  | 2.82 | %
U.S. Treasury and government agencies | 1.30 | % |  | 1.68 | % |  | 1.77 | % |  | 1.64 | % |  | 1.77 | % |  |  | 1.45 | % |  | 2.03 | %
Other | 3.00 | % |  | 3.28 | % |  | 3.45 | % |  | 3.39 | % |  | 3.47 | % |  |  | 3.13 | % |  | 3.57 | %
Total securities available for sale | 1.73 | % |  | 1.95 | % |  | 2.05 | % |  | 2.16 | % |  | 2.39 | % |  |  | 1.82 | % |  | 2.58 | %
Securities held to maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |
Asset-backed |  |  |  |  |  |  |  |  | 2.38 | % |  |  |  |  | 2.65 | %
U.S. Treasury and government agencies | 2.86 | % |  | 2.83 | % |  | 2.88 | % |  | 2.86 | % |  | 2.84 | % |  |  | 2.85 | % |  | 2.84 | %
Other | 3.67 | % |  | 4.17 | % |  | 4.20 | % |  | 4.20 | % |  | 4.27 | % |  |  | 3.91 | % |  | 4.38 | %
Total securities held to maturity | 3.23 | % |  | 3.43 | % |  | 3.47 | % |  | 3.47 | % |  | 3.47 | % |  |  | 3.33 | % |  | 3.51 | %
Total investment securities | 1.75 | % |  | 1.97 | % |  | 2.08 | % |  | 2.18 | % |  | 2.41 | % |  |  | 1.85 | % |  | 2.59 | %
Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial | 2.89 | % |  | 2.91 | % |  | 2.87 | % |  | 2.82 | % |  | 2.83 | % |  |  | 2.90 | % |  | 3.19 | %
Commercial real estate | 2.92 | % |  | 2.80 | % |  | 2.63 | % |  | 2.65 | % |  | 2.84 | % |  |  | 2.86 | % |  | 3.23 | %
Equipment lease financing | 3.76 | % |  | 3.90 | % |  | 3.90 | % |  | 3.80 | % |  | 3.82 | % |  |  | 3.83 | % |  | 3.88 | %
Consumer | 4.82 | % |  | 4.78 | % |  | 4.74 | % |  | 4.69 | % |  | 4.86 | % |  |  | 4.80 | % |  | 5.12 | %
Residential real estate | 3.50 | % |  | 3.53 | % |  | 3.69 | % |  | 3.74 | % |  | 3.86 | % |  |  | 3.51 | % |  | 3.91 | %
Total loans | 3.38 | % |  | 3.38 | % |  | 3.35 | % |  | 3.32 | % |  | 3.37 | % |  |  | 3.38 | % |  | 3.71 | %
Interest-earning deposits with banks | 0.11 | % |  | 0.10 | % |  | 0.10 | % |  | 0.10 | % |  | 0.10 | % |  |  | 0.10 | % |  | 0.50 | %
Other interest-earning assets | 2.46 | % |  | 2.34 | % |  | 1.99 | % |  | 2.23 | % |  | 2.26 | % |  |  | 2.40 | % |  | 2.84 | %
Total yield on interest-earning assets | 2.40 | % |  | 2.40 | % |  | 2.46 | % |  | 2.57 | % |  | 2.85 | % |  |  | 2.40 | % |  | 3.21 | %
Rate on interest-bearing liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing deposits |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market | 0.03 | % |  | 0.03 | % |  | 0.05 | % |  | 0.07 | % |  | 0.15 | % |  |  | 0.03 | % |  | 0.41 | %
Demand | 0.03 | % |  | 0.04 | % |  | 0.04 | % |  | 0.05 | % |  | 0.08 | % |  |  | 0.03 | % |  | 0.23 | %
Savings | 0.05 | % |  | 0.06 | % |  | 0.08 | % |  | 0.11 | % |  | 0.31 | % |  |  | 0.05 | % |  | 0.54 | %
Time deposits | 0.20 | % |  | 0.32 | % |  | 0.41 | % |  | 0.58 | % |  | 0.80 | % |  |  | 0.26 | % |  | 1.06 | %
Total interest-bearing deposits | 0.05 | % |  | 0.06 | % |  | 0.08 | % |  | 0.12 | % |  | 0.23 | % |  |  | 0.05 | % |  | 0.45 | %
Borrowed funds |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal Home Loan Bank borrowings | 0.35 | % |  | 0.43 | % |  | 0.40 | % |  | 0.47 | % |  | 1.00 | % |  |  | 0.42 | % |  | 1.36 | %
Bank notes and senior debt | 0.98 | % |  | 1.04 | % |  | 1.00 | % |  | 1.08 | % |  | 1.56 | % |  |  | 1.01 | % |  | 2.00 | %
Subordinated debt | 1.35 | % |  | 1.43 | % |  | 1.38 | % |  | 1.51 | % |  | 1.91 | % |  |  | 1.39 | % |  | 2.32 | %
Other | 0.97 | % |  | 1.21 | % |  | 1.39 | % |  | 1.31 | % |  | 0.92 | % |  |  | 1.07 | % |  | 1.34 | %
Total borrowed funds | 1.04 | % |  | 1.09 | % |  | 1.02 | % |  | 1.06 | % |  | 1.39 | % |  |  | 1.06 | % |  | 1.80 | %
Total rate on interest-bearing liabilities | 0.16 | % |  | 0.19 | % |  | 0.21 | % |  | 0.26 | % |  | 0.44 | % |  |  | 0.17 | % |  | 0.71 | %
Interest rate spread | 2.24 | % |  | 2.21 | % |  | 2.25 | % |  | 2.31 | % |  | 2.41 | % |  |  | 2.23 | % |  | 2.50 | %
Benefit from use of noninterest bearing sources (b) | 0.05 | % |  | 0.06 | % |  | 0.07 | % |  | 0.08 | % |  | 0.11 | % |  |  | 0.05 | % |  | 0.17 | %
Net interest margin | 2.29 | % |  | 2.27 | % |  | 2.32 | % |  | 2.39 | % |  | 2.52 | % |  |  | 2.28 | % |  | 2.67 | %

(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 GAAP in the Consolidated Income Statement. The taxable-equivalent adjustments to net interest income for the three months ended June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020 were $15 million, $15 million, $17 million, $17 million and $19 million, respectively. The taxable-equivalent adjustments to net interest income for the six months ended June 30, 2021 and June 30, 2020 were $30 million and $41 million, respectively.
(b)Represents the positive effects of investing noninterest-bearing sources in interest-earning assets.
(c)Second quarter results reflect BBVA's acquired business operations for the month of June. Previously disclosed amounts do not include BBVA amounts.

THE PNC FINANCIAL SERVICES GROUP, INC. | Page 5

Table 5: Per Share Related Information (Unaudited) |  |  |  |  |  |  |
| Three months ended |  |  | Six months ended
| June 30 |  | March 31 |  | December 31 |  | September 30 |  | June 30 |  |  | June 30 |  | June 30
In millions, except per share data | 2021 |  | 2021 |  | 2020 |  | 2020 |  | 2020 |  |  | 2021 |  | 2020
Basic |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) from continuing operations | $ | 1,103 |  |  | $ | 1,826 |  |  | $ | 1,456 |  |  | $ | 1,532 |  |  | $ | (744) |  |  |  | $ | 2,929 |  |  | $ | 15 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income attributable to noncontrolling interests | 12 |  |  | 10 |  |  | 14 |  |  | 13 |  |  | 7 |  |  |  | 22 |  |  | 14 |
Preferred stock dividends | 48 |  |  | 57 |  |  | 48 |  |  | 63 |  |  | 55 |  |  |  | 105 |  |  | 118 |
Preferred stock discount accretion and redemptions | 1 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | 1 |  |  |  | 2 |  |  | 2 |
Net income (loss) from continuing operations attributable to common shareholders | 1,042 |  |  | 1,758 |  |  | 1,393 |  |  | 1,455 |  |  | (807) |  |  |  | 2,800 |  |  | (119) |
Less: Dividends and undistributed earnings allocated to nonvested restricted shares | 5 |  |  | 8 |  |  | 6 |  |  | 8 |  |  | 1 |  |  |  | 13 |  |  | 4 |
Net income (loss) from continuing operations attributable to basic common shareholders | $ | 1,037 |  |  | $ | 1,750 |  |  | $ | 1,387 |  |  | $ | 1,447 |  |  | $ | (808) |  |  |  | $ | 2,787 |  |  | $ | (123) |
Net income from discontinued operations attributable to common shareholders |  |  |  |  |  |  |  |  | $ | 4,399 |  |  |  |  |  | $ | 4,555 |
Less: Undistributed earnings allocated to nonvested restricted shares |  |  |  |  |  |  |  |  |  | 21 |  |  |  |  |  | 22 |
Net income from discontinued operations attributable to basic common shareholders |  |  |  |  |  |  |  |  |  | $ | 4,378 |  |  |  |  |  | $ | 4,533 |
Basic weighted-average common shares outstanding | 427 |  |  | 426 |  |  | 425 |  |  | 426 |  |  | 426 |  |  |  | 426 |  |  | 428 |
Basic earnings (loss) per common share from continuing operations (a) | $ | 2.43 |  |  | $ | 4.11 |  |  | $ | 3.26 |  |  | $ | 3.40 |  |  | $ | (1.90) |  |  |  | $ | 6.54 |  |  | $ | (0.29) |
Basic earnings per common share from discontinued operations (a) |  |  |  |  |  |  |  |  | $ | 10.28 |  |  |  |  |  | $ | 10.60 |
Basic earnings per common share | $ | 2.43 |  |  | $ | 4.11 |  |  | $ | 3.26 |  |  | $ | 3.40 |  |  | $ | 8.40 |  |  |  | $ | 6.54 |  |  | $ | 10.33 |
Diluted |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) from continuing operations attributable to diluted common shareholder | $ | 1,037 |  |  | $ | 1,750 |  |  | $ | 1,387 |  |  | $ | 1,447 |  |  | $ | (808) |  |  |  | $ | 2,787 |  |  | $ | (123) |
Net income from discontinued operations attributable to basic common shareholders |  |  |  |  |  |  |  |  |  | $ | 4,378 |  |  |  |  |  | $ | 4,533 |
Less: Impact of earnings per share dilution from discontinued operations |  |  |  |  |  |  |  |  |  | 1 |  |  |  |  |  | 2 |
Net income from discontinued operations attributable to diluted common shareholders |  |  |  |  |  |  |  |  |  | $ | 4,377 |  |  |  |  |  | $ | 4,531 |
Basic weighted-average common shares outstanding | 427 |  |  | 426 |  | 425 |  |  | 426 |  |  | 426 |  |  |  | 426 |  |  | 428 |
Dilutive potential common shares |  |  |  |  | 1 |  |  |  |  |  |  |  | 1 |  |  |
Diluted weighted-average common shares outstanding | 427 |  |  | 426 |  |  | 426 |  |  | 426 |  |  | 426 |  |  |  | 427 |  |  | 428 |
Diluted earnings (loss) per common share from continuing operations (a) | $ | 2.43 |  |  | $ | 4.10 |  |  | $ | 3.26 |  |  | $ | 3.39 |  |  | $ | (1.90) |  |  |  | $ | 6.53 |  |  | $ | (0.29) |
Diluted earnings per common share from discontinued operations (a) |  |  |  |  |  |  |  |  | $ | 10.28 |  |  |  |  |  | $ | 10.59 |
Diluted earnings per common share | $ | 2.43 |  |  | $ | 4.10 |  |  | $ | 3.26 |  |  | $ | 3.39 |  |  | $ | 8.40 |  |  |  | $ | 6.53 |  |  | $ | 10.32 |

(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)

|  | June 30 |  | March 31 |  | December 31 |  | September 30 |  | June 30
In millions |  | 2021 (a) |  | 2021 |  | 2020 |  | 2020 |  | 2020
Commercial |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 155,300 |  |  | $ | 129,798 |  |  | $ | 132,073 |  |  | $ | 137,187 |  |  | $ | 144,335 |
Commercial real estate |  | 37,964 |  |  | 28,319 |  |  | 28,716 |  |  | 29,028 |  |  | 28,763 |
Equipment lease financing |  | 6,376 |  |  | 6,389 |  |  | 6,414 |  |  | 6,479 |  |  | 7,097 |
Total commercial |  | 199,640 |  | 164,506 |  | 167,203 |  | 172,694 |  | 180,195
Consumer |  |  |  |  |  |  |  |  |  |
Home equity |  | 25,174 |  |  | 23,493 |  |  | 24,088 |  |  | 24,539 |  |  | 24,879 |
Residential real estate |  | 36,846 |  |  | 22,418 |  |  | 22,560 |  |  | 22,886 |  |  | 22,469 |
Automobile |  | 17,551 |  |  | 13,584 |  |  | 14,218 |  |  | 14,977 |  |  | 16,157 |
Credit card |  | 6,528 |  |  | 5,675 |  |  | 6,215 |  |  | 6,303 |  |  | 6,575 |
Education |  | 2,726 |  |  | 2,842 |  |  | 2,946 |  |  | 3,051 |  |  | 3,132 |
Other consumer |  | 6,239 |  |  | 4,495 |  |  | 4,698 |  |  | 4,829 |  |  | 4,829 |
Total consumer |  | 95,064 |  |  | 72,507 |  |  | 74,725 |  |  | 76,585 |  |  | 78,041 |
Total loans |  | $ | 294,704 |  |  | $ | 237,013 |  |  | $ | 241,928 |  |  | $ | 249,279 |  |  | $ | 258,236 |

(a)Includes $60.5 billion of loans at June 30, 2021, $38.5 billion in the commercial portfolio and $22.0 billion in the consumer portfolio, that were acquired as a part of the BBVA acquisition on June 1, 2021. Additional information on this acquired loan portfolio will be included in our second quarter 2021 Form 10-Q.

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 |  |  | Six months ended
|  | June 30 |  | March 31 |  | December 31 |  | September 30 |  | June 30 |  |  | June 30 |  | June 30
Dollars in millions |  | 2021 |  | 2021 |  | 2020 |  | 2020 |  | 2020 |  |  | 2021 |  | 2020
Allowance for loan and lease losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 4,714 |  |  | $ | 5,361 |  |  | $ | 5,751 |  |  | $ | 5,928 |  |  | $ | 3,944 |  |  |  | $ | 5,361 |  |  | $ | 2,742 |
Adoption of ASU 2016-03 (a) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 463 |
Acquisition PCD reserves |  | 1,115 |  |  |  |  |  |  |  |  |  |  |  | 1,115 |  |  |
Gross charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | (40) |  |  | (59) |  |  | (133) |  |  | (59) |  |  | (112) |  |  |  | (99) |  |  | (190) |
Commercial real estate |  |  |  | (5) |  |  | (1) |  |  | (1) |  |  |  |  |  | (5) |  |  |
Equipment lease financing |  | (1) |  |  | (5) |  |  | (4) |  |  | (4) |  |  | (10) |  |  |  | (6) |  |  | (15) |
Home equity |  | (7) |  |  | (7) |  |  | (11) |  |  | (12) |  |  | (8) |  |  |  | (14) |  |  | (19) |
Residential real estate |  | (3) |  |  | (4) |  |  | (6) |  |  | (2) |  |  |  |  |  | (7) |  |  | (2) |
Automobile |  | (31) |  |  | (52) |  |  | (55) |  |  | (57) |  |  | (69) |  |  |  | (83) |  |  | (153) |
Credit card |  | (58) |  |  | (69) |  |  | (72) |  |  | (74) |  |  | (76) |  |  |  | (127) |  |  | (154) |
Education |  | (3) |  |  | (5) |  |  | (3) |  |  | (3) |  |  | (4) |  |  |  | (8) |  |  | (10) |
Other consumer |  | (31) |  |  | (37) |  |  | (42) |  |  | (35) |  |  | (35) |  |  |  | (68) |  |  | (75) |
Acquired loan gross charge-offs (b) |  | (254) |  |  |  |  |  |  |  |  |  |  |  | (254) |  |  |
Total gross charge-offs |  | (428) |  |  | (243) |  |  | (327) |  |  | (247) |  |  | (314) |  |  |  | (671) |  |  | (618) |
Recoveries: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | 28 |  |  | 14 |  |  | 23 |  |  | 21 |  |  | 13 |  |  |  | 42 |  |  | 31 |
Commercial real estate |  | 2 |  |  | 1 |  |  | 3 |  |  | 2 |  |  |  |  |  | 3 |  |  | 4 |
Equipment lease financing |  | 3 |  |  | 3 |  |  | 3 |  |  | 3 |  |  | 2 |  |  |  | 6 |  |  | 4 |
Home equity |  | 21 |  |  | 17 |  |  | 17 |  |  | 15 |  |  | 15 |  |  |  | 38 |  |  | 29 |
Residential real estate |  | 6 |  |  | 5 |  |  | 4 |  |  | 4 |  |  | 4 |  |  |  | 11 |  |  | 8 |
Automobile |  | 39 |  |  | 38 |  |  | 33 |  |  | 31 |  |  | 29 |  |  |  | 77 |  |  | 64 |
Credit card |  | 10 |  |  | 12 |  |  | 9 |  |  | 9 |  |  | 9 |  |  |  | 22 |  |  | 17 |
Education |  | 2 |  |  | 2 |  |  | 2 |  |  | 2 |  |  | 2 |  |  |  | 4 |  |  | 4 |
Other consumer |  | 5 |  |  | 5 |  |  | 4 |  |  | 5 |  |  | 4 |  |  |  | 10 |  |  | 9 |
Acquired loan recoveries |  | 6 |  |  |  |  |  |  |  |  |  |  |  | 6 |  |  |
Total recoveries |  | 122 |  |  | 97 |  |  | 98 |  |  | 92 |  |  | 78 |  |  |  | 219 |  |  | 170 |
Net (charge-offs) / recoveries: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | (12) |  |  | (45) |  |  | (110) |  |  | (38) |  |  | (99) |  |  |  | (57) |  |  | (159) |
Commercial real estate |  | 2 |  |  | (4) |  |  | 2 |  |  | 1 |  |  |  |  |  | (2) |  |  | 4 |
Equipment lease financing |  | 2 |  |  | (2) |  |  | (1) |  |  | (1) |  |  | (8) |  |  |  |  |  | (11) |
Home equity |  | 14 |  |  | 10 |  |  | 6 |  |  | 3 |  |  | 7 |  |  |  | 24 |  |  | 10 |
Residential real estate |  | 3 |  |  | 1 |  |  | (2) |  |  | 2 |  |  | 4 |  |  |  | 4 |  |  | 6 |
Automobile |  | 8 |  |  | (14) |  |  | (22) |  |  | (26) |  |  | (40) |  |  |  | (6) |  |  | (89) |
Credit card |  | (48) |  |  | (57) |  |  | (63) |  |  | (65) |  |  | (67) |  |  |  | (105) |  |  | (137) |
Education |  | (1) |  |  | (3) |  |  | (1) |  |  | (1) |  |  | (2) |  |  |  | (4) |  |  | (6) |
Other consumer |  | (26) |  |  | (32) |  |  | (38) |  |  | (30) |  |  | (31) |  |  |  | (58) |  |  | (66) |
Acquired loan net (charge-offs) |  | (248) |  |  |  |  |  |  |  |  |  |  |  | (248) |  |  |
Total net (charge-offs) |  | (306) |  |  | (146) |  |  | (229) |  |  | (155) |  |  | (236) |  |  |  | (452) |  |  | (448) |
Provision for (recapture of) credit losses (c) |  | 206 |  |  | (502) |  |  | (164) |  |  | (23) |  |  | 2,220 |  |  |  | (296) |  |  | 3,172 |
Other |  | 1 |  |  | 1 |  |  | 3 |  |  | 1 |  |  |  |  |  | 2 |  |  | (1) |
Ending balance |  | $ | 5,730 |  |  | $ | 4,714 |  |  | $ | 5,361 |  |  | $ | 5,751 |  |  | $ | 5,928 |  |  |  | $ | 5,730 |  |  | $ | 5,928 |
Supplemental Information |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net charge-offs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial net charge-offs |  | $ | (240) |  |  | $ | (51) |  |  | $ | (109) |  |  | $ | (38) |  |  | $ | (107) |  |  |  | $ | (291) |  |  | $ | (166) |
Consumer net charge-offs |  | (66) |  |  | (95) |  |  | (120) |  |  | (117) |  |  | (129) |  |  |  | (161) |  |  | (282) |
Total net charge-offs |  | $ | (306) |  |  | $ | (146) |  |  | $ | (229) |  |  | $ | (155) |  |  | $ | (236) |  |  |  | $ | (452) |  |  | $ | (448) |
Net charge-offs to average loans (annualized) |  | 0.48 | % |  | 0.25 | % |  | 0.37 | % |  | 0.24 | % |  | 0.35 | % |  |  | 0.37 | % |  | 0.35 | %
Commercial |  | 0.55 | % |  | 0.13 | % |  | 0.25 | % |  | 0.09 | % |  | 0.23 | % |  |  | 0.34 | % |  | 0.19 | %
Consumer |  | 0.33 | % |  | 0.53 | % |  | 0.63 | % |  | 0.60 | % |  | 0.66 | % |  |  | 0.42 | % |  | 0.72 | %

(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 2020 Form 10-K included additional information related to our adoption of the CECL standard.
(b) Primarily represents the charge-off of certain loans previously charged off by BBVA, which were written up upon acquisition to unpaid principal balance as required by purchase accounting.
(c) See Table 8 for the components of the Provision for (recapture of) credit losses being reported on the Consolidated Income Statement.

THE PNC FINANCIAL SERVICES GROUP, INC. | Page 8

Allowance for Credit Losses (Unaudited) (Continued)
Table 8: Components of the Provision for (Recapture of) Credit Losses

|  | Three months ended |  |  | Six months ended
|  | June 30 |  | March 31 |  | December 31 |  | September 30 |  | June 30 |  |  | June 30 |  | June 30
In millions |  | 2021 (a) |  | 2021 |  | 2020 |  | 2020 |  | 2020 |  |  | 2021 (a) |  | 2020
Provision for (recapture of) credit losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and leases |  | $ | 206 |  |  | $ | (502) |  |  | $ | (164) |  |  | $ | (23) |  |  | $ | 2,220 |  |  |  | $ | (296) |  |  | $ | 3,172 |
Unfunded lending related commitments |  | 92 |  |  | (77) |  |  | (105) |  |  | 27 |  |  | 212 |  |  |  | 15 |  |  | 165 |
Investment securities |  |  |  | 26 |  |  | 11 |  |  | 39 |  |  | 30 |  |  |  | 26 |  |  | 30 |
Other financial assets |  | 4 |  |  | 2 |  |  | 4 |  |  | 9 |  |  | 1 |  |  |  | 6 |  |  | 10 |
Total provision for (recapture of) credit losses |  | $ | 302 |  |  | $ | (551) |  |  | $ | (254) |  |  | $ | 52 |  |  | $ | 2,463 |  |  |  | $ | (249) |  |  | $ | 3,377 |

(a) Amounts for the three and six months ended June 30, 2021 include $1.0 billion of provision for credit losses that was recorded as part of the BBVA acquisition on June 1, 2021.
Table 9: Allowance for Credit Losses by Loan Class (a)

| June 30, 2021 |  | March 31, 2021 |  | June 30, 2020
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 | $ | 2,282 |  |  | $ | 155,300 |  | 1.47 | % |  | $ | 1,815 |  |  | $ | 129,798 |  | 1.40 | % |  | $ | 2,834 |  |  | $ | 144,335 |  | 1.96 | %
Commercial real estate | 1,404 |  |  | 37,964 |  | 3.70 | % |  | 1,126 |  |  | 28,319 |  | 3.98 | % |  | 382 |  |  | 28,763 |  | 1.33 | %
Equipment lease financing | 126 |  |  | 6,376 |  | 1.98 | % |  | 142 |  |  | 6,389 |  | 2.22 | % |  | 164 |  |  | 7,097 |  | 2.31 | %
Total commercial | 3,812 |  |  | 199,640 |  | 1.91 | % |  | 3,083 |  |  | 164,506 |  | 1.87 | % |  | 3,380 |  |  | 180,195 |  | 1.88 | %
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity | 188 |  |  | 25,174 |  | 0.75 | % |  | 239 |  |  | 23,493 |  | 1.02 | % |  | 382 |  |  | 24,879 |  | 1.54 | %
Residential real estate | 63 |  |  | 36,846 |  | 0.17 | % |  | (17) |  |  | 22,418 |  | (0.08) | % |  | 50 |  |  | 22,469 |  | 0.22 | %
Automobile | 421 |  |  | 17,551 |  | 2.40 | % |  | 344 |  |  | 13,584 |  | 2.53 | % |  | 450 |  |  | 16,157 |  | 2.79 | %
Credit card | 711 |  |  | 6,528 |  | 10.89 | % |  | 693 |  |  | 5,675 |  | 12.21 | % |  | 1,010 |  |  | 6,575 |  | 15.36 | %
Education | 98 |  |  | 2,726 |  | 3.60 | % |  | 112 |  |  | 2,842 |  | 3.94 | % |  | 151 |  |  | 3,132 |  | 4.82 | %
Other consumer | 437 |  |  | 6,239 |  | 7.00 | % |  | 260 |  |  | 4,495 |  | 5.78 | % |  | 505 |  |  | 4,829 |  | 10.46 | %
Total consumer | 1,918 |  |  | 95,064 |  | 2.02 | % |  | 1,631 |  |  | 72,507 |  | 2.25 | % |  | 2,548 |  |  | 78,041 |  | 3.26 | %
Total | 5,730 |  |  | $ | 294,704 |  | 1.94 | % |  | 4,714 |  |  | $ | 237,013 |  | 1.99 | % |  | 5,928 |  |  | $ | 258,236 |  | 2.30 | %
Allowance for unfunded lending related commitments | 645 |  |  |  |  |  | 507 |  |  |  |  |  | 662 |  |  |  |
Allowance for credit losses | $ | 6,375 |  |  |  |  |  | $ | 5,221 |  |  |  |  |  | $ | 6,590 |  |  |  |
Supplemental Information |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses to total loans |  |  |  | 2.16 | % |  |  |  |  | 2.20 | % |  |  |  |  | 2.55 | %
Commercial |  |  |  | 2.18 | % |  |  |  |  | 2.12 | % |  |  |  |  | 2.18 | %
Consumer |  |  |  | 2.14 | % |  |  |  |  | 2.39 | % |  |  |  |  | 3.41 | %

(a) Excludes allowances for investment securities and other financial assets, which together totaled $138 million, $136 million and $51 million at June 30, 2021, March 31, 2021 and June 30, 2020, respectively.

THE PNC FINANCIAL SERVICES GROUP, INC. | Page 9

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

|  | June 30 |  | March 31 |  | December 31 |  | September 30 |  | June 30
Dollars in millions |  | 2021 |  | 2021 |  | 2020 |  | 2020 |  | 2020
Nonperforming loans, including TDRs |  |  |  |  |  |  |  |  |  |
Commercial |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  |  |  |  |  |  |  |  |
Retail/wholesale trade |  | $ | 25 |  |  | $ | 66 |  |  | $ | 61 |  |  | $ | 90 |  |  | $ | 117 |
Manufacturing |  | 37 |  |  | 55 |  |  | 81 |  |  | 80 |  |  | 58 |
Service providers |  | 87 |  |  | 79 |  |  | 90 |  |  | 69 |  |  | 57 |
Real estate related (a) |  | 41 |  |  | 48 |  |  | 95 |  |  | 140 |  |  | 158 |
Health care |  | 17 |  |  | 19 |  |  | 20 |  |  | 20 |  |  | 19 |
Transportation and warehousing |  | 15 |  |  | 18 |  |  | 20 |  |  | 14 |  |  | 20 |
Other industries |  | 144 |  |  | 227 |  |  | 299 |  |  | 264 |  |  | 264 |
Total commercial and industrial |  | 366 |  |  | 512 |  |  | 666 |  |  | 677 |  |  | 693 |
Commercial real estate |  | 218 |  |  | 221 |  |  | 224 |  |  | 217 |  |  | 43 |
Equipment lease financing |  | 15 |  |  | 16 |  |  | 33 |  |  | 21 |  |  | 22 |
Acquired loans (b) |  | 847 |  |  |  |  |  |  |  |  |
Total commercial |  | 1,446 |  |  | 749 |  |  | 923 |  |  | 915 |  |  | 758 |
Consumer (c) |  |  |  |  |  |  |  |  |  |
Home equity |  | 624 |  |  | 656 |  |  | 645 |  |  | 639 |  |  | 636 |
Residential real estate |  | 502 |  |  | 541 |  |  | 528 |  |  | 339 |  |  | 305 |
Automobile |  | 172 |  |  | 178 |  |  | 175 |  |  | 171 |  |  | 156 |
Credit card |  | 5 |  |  | 7 |  |  | 8 |  |  | 13 |  |  | 15 |
Other consumer |  | 6 |  |  | 7 |  |  | 7 |  |  | 8 |  |  | 6 |
Acquired loans (b) |  | 24 |  |  |  |  |  |  |  |  |
Total consumer |  | 1,333 |  |  | 1,389 |  |  | 1,363 |  |  | 1,170 |  |  | 1,118 |
Total nonperforming loans (d) |  | 2,779 |  |  | 2,138 |  |  | 2,286 |  |  | 2,085 |  |  | 1,876 |
OREO and foreclosed assets |  | 30 |  |  | 41 |  |  | 51 |  |  | 67 |  |  | 79 |
Acquired OREO and foreclosed assets (b) |  | 9 |  |  |  |  |  |  |  |  |
Total nonperforming assets |  | $ | 2,818 |  |  | $ | 2,179 |  |  | $ | 2,337 |  |  | $ | 2,152 |  |  | $ | 1,955 |
Nonperforming loans to total loans |  | 0.94 | % |  | 0.90 | % |  | 0.94 | % |  | 0.84 | % |  | 0.73 | %
Acquired nonperforming loans to total acquired loans (b) |  | 1.44 | % |  |  |  |  |  |  |  |
Nonperforming assets to total loans, OREO and foreclosed assets |  | 0.96 | % |  | 0.92 | % |  | 0.97 | % |  | 0.86 | % |  | 0.76 | %
Nonperforming assets to total assets |  | 0.51 | % |  | 0.46 | % |  | 0.50 | % |  | 0.47 | % |  | 0.43 | %
Allowance for loan and lease losses to nonperforming loans |  | 206 | % |  | 220 | % |  | 235 | % |  | 276 | % |  | 316 | %
Allowance for acquired loan and lease losses to acquired nonperforming loans (b) |  | 193 | % |  |  |  |  |  |  |  |

(a)Represents loans related to customers in the real estate and construction industries.
(b)Reflects nonperforming assets acquired as a part of the BBVA acquisition on June 1, 2021. Additional information on this acquired portfolio will be included in our second quarter 2021 Form 10-Q.
(c)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.
(d)Nonperforming loans exclude certain government insured or guaranteed loans, loans held for sale and loans accounted for under the fair value option.

THE PNC FINANCIAL SERVICES GROUP, INC. | Page 10

Details of Nonperforming Assets (Unaudited) (Continued)
Table 11: Change in Nonperforming Assets

|  | April 1, 2021 - |  | January 1, 2021 - |  | October 1, 2020 - |  | July 1, 2020 - |  | April 1, 2020 -
In millions |  | June 30, 2021 |  | March 31, 2021 |  | December 31, 2020 |  | September 30, 2020 |  | June 30, 2020
Beginning balance |  | $ | 2,179 |  |  | $ | 2,337 |  |  | $ | 2,152 |  |  | $ | 1,955 |  |  | $ | 1,755 |
New nonperforming assets |  | 207 |  |  | 249 |  |  | 586 |  |  | 512 |  |  | 458 |
Charge-offs and valuation adjustments |  | (61) |  |  | (70) |  |  | (97) |  |  | (75) |  |  | (104) |
Principal activity, including paydowns and payoffs |  | (264) |  |  | (186) |  |  | (185) |  |  | (175) |  |  | (85) |
Asset sales and transfers to loans held for sale |  | (15) |  |  | (86) |  |  | (14) |  |  | (20) |  |  | (28) |
Returned to performing status |  | (108) |  |  | (65) |  |  | (105) |  |  | (45) |  |  | (41) |
Acquired nonperforming assets (a) |  | 880 |  |  |  |  |  |  |  |  |
Ending balance |  | $ | 2,818 |  |  | $ | 2,179 |  |  | $ | 2,337 |  |  | $ | 2,152 |  |  | $ | 1,955 |

(a)Represents nonperforming assets acquired as a part of the BBVA acquisition on June 1, 2021 and includes $871 million of loans and $9 million of OREO and foreclosed assets. See our second quarter 2021 Form 10-Q for additional information on this acquired portfolio.
Table 12: Largest Individual Nonperforming Assets (a)

June 30, 2021 - Dollars in millions |  |
Ranking |  | Outstandings |  | Industry
1 |  | $ | 141 |  |  | Real Estate and Rental and Leasing
2 |  | 56 |  |  | Real Estate and Rental and Leasing
3 |  | 49 |  |  | Accommodation and Food Services
4 |  | 46 |  |  | Professional, Scientific, and Technical Services
5 |  | 36 |  |  | Accommodation and Food Services
6 |  | 35 |  |  | Mining, Quarrying, and Oil and Gas Extraction
7 |  | 32 |  |  | Health Care and Social Assistance
8 |  | 32 |  |  | Arts, Entertainment, and Recreation
9 |  | 31 |  |  | Real Estate and Rental and Leasing
10 |  | 30 |  |  | Mining, Quarrying, and Oil and Gas Extraction
Total |  | $ | 488 |  |  |
As a percent of total nonperforming assets |  | 17% |

(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 for all periods presented 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 beca4me 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 for the periods presented based on the contractual terms of the loan, even where borrowers may not be making payments on their loans during the modification period. Our first quarter 2021 Form 10-Q included, and our second quarter 2021 Form 10-Q will include, additional information on COVID-19 related loan modifications.
Table 13: Accruing Loans Past Due 30 to 59 Days (a)

|  | Jun. 30 |  | Mar. 31 |  | Dec. 31 |  | Sept. 30 |  | Jun. 30 |  |  |  |  |  |  |  |  |  |
Dollars in millions |  | 2021 |  | 2021 |  | 2020 |  | 2020 |  | 2020 |  |  |  |  |  |  |  |  |  |
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 46 |  | $ | 80 |  | $ | 106 |  | $ | 56 |  | $ | 49 |  |  |  |  |  |  |  |  |  |
Commercial real estate |  | 1 |  | 12 |  | 6 |  | 6 |  | 51 |  |  |  |  |  |  |  |  |  |
Equipment lease financing |  | 3 |  | 21 |  | 31 |  | 7 |  | 8 |  |  |  |  |  |  |  |  |  |
Acquired loans (b) |  | 30 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total commercial |  | 80 |  | 113 |  | 143 |  | 69 |  | 108 |  |  |  |  |  |  |  |  |  |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity |  | 38 |  | 43 |  | 50 |  | 48 |  | 70 |  |  |  |  |  |  |  |  |  |
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non government insured |  | 77 |  | 61 |  | 89 |  | 99 |  | 135 |  |  |  |  |  |  |  |  |  |
Government insured |  | 87 |  | 101 |  | 92 |  | 89 |  | 63 |  |  |  |  |  |  |  |  |  |
Automobile |  | 70 |  | 76 |  | 134 |  | 116 |  | 105 |  |  |  |  |  |  |  |  |  |
Credit card |  | 29 |  | 31 |  | 43 |  | 44 |  | 53 |  |  |  |  |  |  |  |  |  |
Education |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non government insured |  | 5 |  | 6 |  | 5 |  | 6 |  | 3 |  |  |  |  |  |  |  |  |  |
Government insured |  | 41 |  | 43 |  | 50 |  | 51 |  | 36 |  |  |  |  |  |  |  |  |  |
Other consumer |  | 10 |  | 11 |  | 14 |  | 17 |  | 17 |  |  |  |  |  |  |  |  |  |
Acquired loans (b) |  | 111 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total consumer |  | 468 |  | 372 |  | 477 |  | 470 |  | 482 |  |  |  |  |  |  |  |  |  |
Total |  | $ | 548 |  | $ | 485 |  | $ | 620 |  | $ | 539 |  | $ | 590 |  |  |  |  |  |  |  |  |  |
Supplemental Information |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total accruing loans past due 30-59 days to total loans |  | 0.19 | % |  | 0.20 | % |  | 0.26 | % |  | 0.22 | % |  | 0.23 | % |  |  |  |  |  |  |  |  |  |
Commercial |  | 0.04 | % |  | 0.07 | % |  | 0.09 | % |  | 0.04 | % |  | 0.06 | % |  |  |  |  |  |  |  |  |  |
Consumer |  | 0.49 | % |  | 0.51 | % |  | 0.64 | % |  | 0.61 | % |  | 0.62 | % |  |  |  |  |  |  |  |  |  |

THE PNC FINANCIAL SERVICES GROUP, INC. | Page 12

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

|  | Jun. 30 |  | Mar. 31 |  | Dec. 31 |  | Sept. 30 |  | Jun. 30 |  |  |  |  |  |  |  |  |  |
Dollars in millions |  | 2021 |  | 2021 |  | 2020 |  | 2020 |  | 2020 |  |  |  |  |  |  |  |  |  |
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 18 |  | $ | 13 |  | $ | 26 |  | $ | 37 |  | $ | 28 |  |  |  |  |  |  |  |  |  |
Commercial real estate |  | 3 |  | 1 |  | 1 |  | 6 |  | 4 |  |  |  |  |  |  |  |  |  |
Equipment lease financing |  | 3 |  | 1 |  | 5 |  | 4 |  | 9 |  |  |  |  |  |  |  |  |  |
Acquired loans (b) |  | 10 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total commercial |  | 34 |  | 15 |  | 32 |  | 47 |  | 41 |  |  |  |  |  |  |  |  |  |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity |  | 15 |  | 20 |  | 21 |  | 22 |  | 27 |  |  |  |  |  |  |  |  |  |
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non government insured |  | 9 |  | 13 |  | 16 |  | 22 |  | 34 |  |  |  |  |  |  |  |  |  |
Government insured |  | 51 |  | 60 |  | 62 |  | 58 |  | 59 |  |  |  |  |  |  |  |  |  |
Automobile |  | 14 |  | 19 |  | 34 |  | 32 |  | 34 |  |  |  |  |  |  |  |  |  |
Credit card |  | 19 |  | 24 |  | 30 |  | 33 |  | 38 |  |  |  |  |  |  |  |  |  |
Education |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non government insured |  | 2 |  | 3 |  | 2 |  | 2 |  | 2 |  |  |  |  |  |  |  |  |  |
Government insured |  | 20 |  | 22 |  | 27 |  | 24 |  | 21 |  |  |  |  |  |  |  |  |  |
Other consumer |  | 5 |  | 6 |  | 10 |  | 11 |  | 8 |  |  |  |  |  |  |  |  |  |
Acquired loans (b) |  | 46 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total consumer |  | 181 |  | 167 |  | 202 |  | 204 |  | 223 |  |  |  |  |  |  |  |  |  |
Total |  | $ | 215 |  | $ | 182 |  | $ | 234 |  | $ | 251 |  | $ | 264 |  |  |  |  |  |  |  |  |  |
Supplemental Information |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total accruing loans past due 60-89 days to total loans |  | 0.07 | % | 0.08 | % |  | 0.10 | % |  | 0.10 | % |  | 0.10 | % |  |  |  |  |  |  |  |  |  |
Commercial |  | 0.02 | % | 0.01 | % |  | 0.02 | % |  | 0.03 | % |  | 0.02 | % |  |  |  |  |  |  |  |  |  |
Consumer |  | 0.19 | % | 0.23 | % |  | 0.27 | % |  | 0.27 | % |  | 0.29 | % |  |  |  |  |  |  |  |  |  |

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

|  | Jun. 30 |  | Mar. 31 |  | Dec. 31 |  | Sept. 30 |  | Jun. 30 |  |  |  |  |  |  |  |  |  |
Dollars in millions |  | 2021 |  | 2021 |  | 2020 |  | 2020 |  | 2020 |  |  |  |  |  |  |  |  |  |
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 40 |  | $ | 63 |  | $ | 30 |  | $ | 36 |  | $ | 34 |  |  |  |  |  |  |  |  |  |
Acquired loans (b) |  | 7 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total commercial |  | 47 |  | 63 |  | 30 |  | 36 |  | 34 |  |  |  |  |  |  |  |  |  |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non government insured |  | 20 |  | 17 |  | 27 |  | 28 |  | 19 |  |  |  |  |  |  |  |  |  |
Government insured |  | 257 |  | 258 |  | 292 |  | 241 |  | 245 |  |  |  |  |  |  |  |  |  |
Automobile |  | 3 |  | 6 |  | 12 |  | 12 |  | 19 |  |  |  |  |  |  |  |  |  |
Credit card |  | 41 |  | 52 |  | 60 |  | 60 |  | 61 |  |  |  |  |  |  |  |  |  |
Education |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non government insured |  | 1 |  | 2 |  | 2 |  | 1 |  | 1 |  |  |  |  |  |  |  |  |  |
Government insured |  | 66 |  | 74 |  | 75 |  | 62 |  | 65 |  |  |  |  |  |  |  |  |  |
Other consumer |  | 5 |  | 7 |  | 11 |  | 8 |  | 12 |  |  |  |  |  |  |  |  |  |
Acquired loans (b) |  | 87 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total consumer |  | 480 |  | 416 |  | 479 |  | 412 |  | 422 |  |  |  |  |  |  |  |  |  |
Total |  | $ | 527 |  | $ | 479 |  | $ | 509 |  | $ | 448 |  | $ | 456 |  |  |  |  |  |  |  |  |  |
Supplemental Information |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total accruing loans past due 90 days or more to total loans |  | 0.18 | % | 0.20 | % |  | 0.21 | % |  | 0.18 | % |  | 0.18 | % |  |  |  |  |  |  |  |  |  |
Commercial |  | 0.02 | % | 0.04 | % |  | 0.02 | % |  | 0.02 | % |  | 0.02 | % |  |  |  |  |  |  |  |  |  |
Consumer |  | 0.50 | % | 0.57 | % |  | 0.64 | % |  | 0.54 | % |  | 0.54 | % |  |  |  |  |  |  |  |  |  |

(a)Excludes loans held for sale.
(b)Reflects loans acquired as part of the BBVA acquisition on June 1, 2021. Additional information on this acquired loan portfolio will be included in our second quarter 2021 Form 10-Q.

THE PNC FINANCIAL SERVICES GROUP, INC. | Page 13

Glossary of Terms
2019 Tailoring Rules – Rules adopted by the federal banking agencies to better tailor the application of their capital, liquidity, and enhanced prudential requirements for banking organizations to the asset size and risk profile (as measured by certain regulatory metrics) of the banking organization. Effective January 1, 2020, the agencies' capital and liquidity rules classify all BHCs with $100 billion or more in total assets into one of four categories (Category I, Category II, Category III, and Category IV).
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).
Allowance for credit losses (ACL) – A valuation account that is deducted from or added to the amortized cost basis of the related
financial assets to present the net carrying value at the amount expected to be collected on the financial asset.
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.
Basel III common equity Tier 1 (CET1) 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 (net of associated deferred tax liabilities) 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).
BBVA – BBVA USA Bancshares, Inc.
BBVA, S.A. – Banco Bilbao Vizcaya Argentaria, S.A.
BBVA USA – BBVA USA, the Alabama-chartered bank subsidiary of BBVA USA Bancshares, Inc.
BlackRock – BlackRock, Inc.
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.
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.”
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.

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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.
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.
GAAP - Accounting principles generally accepted in the United States of America.
Leverage ratio - Basel III Tier 1 capital divided by average quarterly adjusted total assets.
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 assets. 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.
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).
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.
Purchased credit deteriorated assets (PCD) - 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.
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 - Intangible assets or liabilities 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

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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.
Unfunded lending related commitments - Standby letters of credit, financial guarantees, commitments to extend credit and similar unfunded obligations that are not unilaterally, unconditionally, cancelable at PNC’s option.
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.