EX-99.1 2 q42021financialsupplement.htm EX-99.1
Exhibit 99.1
THE PNC FINANCIAL SERVICES GROUP, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2021
(Unaudited)

THE PNC FINANCIAL SERVICES GROUP, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2021
(UNAUDITED)

Consolidated Results: | Page
Income Statement | 1
Balance Sheet | 2
Average Balance Sheet | 3
Details of Net Interest Margin | 4
Loans | 5
Allowance for Credit Losses | 6-7
Nonperforming Assets | 8
Accruing Loans Past Due | 9-11
Business Segment Results: |
Descriptions | 12
Period End Employees | 12
Net Income and Revenue | 13
Retail Banking | 14-15
Corporate & Institutional Banking | 16
Asset Management Group | 17
Glossary of Terms | 18-20

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on January 18, 2022. 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 coast-to-coast. PNC also has strategic international offices in four countries outside the U.S.
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. PNC paid $11.5 billion in cash as consideration for the acquisition.
On October 8, 2021, BBVA USA merged into PNC Bank. As of October 12, 2021, PNC converted approximately 2.6 million
customers, 9,000 employees and over 600 branches across seven states. Our results for the year ended 2021 reflect the benefit of BBVA's acquired business operations for the period since the acquisition closed on June 1, 2021. PNC's balance sheets at December 31, 2021, September 30, 2021 and June 30, 2021 include BBVA's balances.
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 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 Fourth 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 | Details of Loans | 5
6 | Change in Allowance for Loan and Lease Losses | 6
7 | Components of the Provision for (Recapture of) Credit Losses | 7
8 | Allowance for Credit Losses by Loan Class | 7
9 | Nonperforming Assets by Type | 8
10 | Change in Nonperforming Assets | 8
11 | Accruing Loans Past Due 30 to 59 Days | 9
12 | Accruing Loans Past Due 60 to 89 Days | 10
13 | Accruing Loans Past Due 90 Days or More | 11
14 | Period End Employees | 12
15 | Summary of Business Segment Net Income and Revenue | 13
16 | Retail Banking | 14-15
17 | Corporate & Institutional Banking | 16
18 | Asset Management Group | 17

THE PNC FINANCIAL SERVICES GROUP, INC. | Page 1

Table 1: Consolidated Income Statement (Unaudited)

| Three months ended |  |  | Year ended
| December 31 |  | September 30 |  | June 30 |  | March 31 |  | December 31 |  |  | December 31 |  | December 31
In millions, except per share data | 2021 |  | 2021 |  | 2021 |  | 2021 |  | 2020 |  |  | 2021 |  | 2020
Interest Income |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans | $ | 2,414 |  |  | $ | 2,437 |  |  | $ | 2,160 |  |  | $ | 1,996 |  |  | $ | 2,074 |  |  |  | $ | 9,007 |  |  | $ | 8,927 |
Investment securities | 484 |  |  | 460 |  |  | 469 |  |  | 421 |  |  | 442 |  |  |  | 1,834 |  |  | 2,041 |
Other | 77 |  |  | 78 |  |  | 72 |  |  | 66 |  |  | 60 |  |  |  | 293 |  |  | 339 |
Total interest income | 2,975 |  |  | 2,975 |  |  | 2,701 |  |  | 2,483 |  |  | 2,576 |  |  |  | 11,134 |  |  | 11,307 |
Interest Expense |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits | 27 |  |  | 29 |  |  | 30 |  |  | 40 |  |  | 53 |  |  |  | 126 |  |  | 643 |
Borrowed funds | 86 |  |  | 90 |  |  | 90 |  |  | 95 |  |  | 99 |  |  |  | 361 |  |  | 718 |
Total interest expense | 113 |  |  | 119 |  |  | 120 |  |  | 135 |  |  | 152 |  |  |  | 487 |  |  | 1,361 |
Net interest income | 2,862 |  |  | 2,856 |  |  | 2,581 |  |  | 2,348 |  |  | 2,424 |  |  |  | 10,647 |  |  | 9,946 |
Noninterest Income |  |  |  |  |  |  |  |  |  |  |  |  |  |
Asset management | 251 |  |  | 248 |  |  | 239 |  |  | 226 |  |  | 221 |  |  |  | 964 |  |  | 836 |
Consumer services | 508 |  |  | 496 |  |  | 457 |  |  | 384 |  |  | 387 |  |  |  | 1,845 |  |  | 1,484 |
Corporate services | 839 |  |  | 842 |  |  | 688 |  |  | 555 |  |  | 650 |  |  |  | 2,924 |  |  | 2,167 |
Residential mortgage | 101 |  |  | 147 |  |  | 103 |  |  | 105 |  |  | 99 |  |  |  | 456 |  |  | 604 |
Service charges on deposits | 126 |  |  | 159 |  |  | 131 |  |  | 119 |  |  | 134 |  |  |  | 535 |  |  | 500 |
Other (a) | 440 |  |  | 449 |  |  | 468 |  |  | 483 |  |  | 293 |  |  |  | 1,840 |  |  | 1,364 |
Total noninterest income | 2,265 |  |  | 2,341 |  |  | 2,086 |  |  | 1,872 |  |  | 1,784 |  |  |  | 8,564 |  |  | 6,955 |
Total revenue | 5,127 |  |  | 5,197 |  |  | 4,667 |  |  | 4,220 |  |  | 4,208 |  |  |  | 19,211 |  |  | 16,901 |
Provision For (Recapture of) Credit Losses | (327) |  |  | (203) |  |  | 302 |  |  | (551) |  |  | (254) |  |  |  | (779) |  |  | 3,175 |
Noninterest Expense |  |  |  |  |  |  |  |  |  |  |  |  |  |
Personnel | 2,038 |  |  | 1,986 |  |  | 1,640 |  |  | 1,477 |  |  | 1,521 |  |  |  | 7,141 |  |  | 5,673 |
Occupancy | 260 |  |  | 248 |  |  | 217 |  |  | 215 |  |  | 215 |  |  |  | 940 |  |  | 826 |
Equipment | 437 |  |  | 355 |  |  | 326 |  |  | 293 |  |  | 296 |  |  |  | 1,411 |  |  | 1,176 |
Marketing | 97 |  |  | 103 |  |  | 74 |  |  | 45 |  |  | 64 |  |  |  | 319 |  |  | 236 |
Other | 959 |  |  | 895 |  |  | 793 |  |  | 544 |  |  | 612 |  |  |  | 3,191 |  |  | 2,386 |
Total noninterest expense | 3,791 |  |  | 3,587 |  |  | 3,050 |  |  | 2,574 |  |  | 2,708 |  |  |  | 13,002 |  |  | 10,297 |
Income from continuing operations before income taxes and noncontrolling interests | 1,663 |  |  | 1,813 |  |  | 1,315 |  |  | 2,197 |  |  | 1,754 |  |  |  | 6,988 |  |  | 3,429 |
Income taxes from continuing operations | 357 |  |  | 323 |  |  | 212 |  |  | 371 |  |  | 298 |  |  |  | 1,263 |  |  | 426 |
Net income from continuing operations | 1,306 |  |  | 1,490 |  |  | 1,103 |  |  | 1,826 |  |  | 1,456 |  |  |  | 5,725 |  |  | 3,003 |
Income from discontinued operations before taxes |  |  |  |  |  |  |  |  |  |  |  |  |  | 5,777 |
Income taxes from discontinued operations |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,222 |
Net income from discontinued operations |  |  |  |  |  |  |  |  |  |  |  |  |  | 4,555 |
Net income | 1,306 |  |  | 1,490 |  |  | 1,103 |  |  | 1,826 |  |  | 1,456 |  |  |  | 5,725 |  |  | 7,558 |
Less: Net income attributable to noncontrolling interests | 13 |  |  | 16 |  |  | 12 |  |  | 10 |  |  | 14 |  |  |  | 51 |  |  | 41 |
Preferred stock dividends (b) | 71 |  |  | 57 |  |  | 48 |  |  | 57 |  |  | 48 |  |  |  | 233 |  |  | 229 |
Preferred stock discount accretion and redemptions | 2 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | 1 |  |  |  | 5 |  |  | 4 |
Net income attributable to common shareholders | $ | 1,220 |  |  | $ | 1,416 |  |  | $ | 1,042 |  |  | $ | 1,758 |  |  | $ | 1,393 |  |  |  | $ | 5,436 |  |  | $ | 7,284 |
Earnings Per Common Share |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic earnings from continuing operations | $ | 2.87 |  |  | $ | 3.31 |  |  | $ | 2.43 |  |  | $ | 4.11 |  |  | $ | 3.26 |  |  |  | $ | 12.71 |  |  | $ | 6.37 |
Basic earnings from discontinued operations |  |  |  |  |  |  |  |  |  |  |  |  |  | 10.62 |
Total basic earnings | $ | 2.87 |  |  | $ | 3.31 |  |  | $ | 2.43 |  |  | $ | 4.11 |  |  | $ | 3.26 |  |  |  | $ | 12.71 |  |  | $ | 16.99 |
Diluted earnings from continuing operations | $ | 2.86 |  |  | $ | 3.30 |  |  | $ | 2.43 |  |  | $ | 4.10 |  |  | $ | 3.26 |  |  |  | $ | 12.70 |  |  | $ | 6.36 |
Diluted earnings from discontinued operations |  |  |  |  |  |  |  |  |  |  |  |  |  | 10.60 |
Total diluted earnings | $ | 2.86 |  |  | $ | 3.30 |  |  | $ | 2.43 |  |  | $ | 4.10 |  |  | $ | 3.26 |  |  |  | $ | 12.70 |  |  | $ | 16.96 |
Average Common Shares Outstanding |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic | 424 |  |  | 426 |  |  | 427 |  |  | 426 |  |  | 425 |  |  |  | 426 |  |  | 427 |
Diluted | 424 |  |  | 426 |  |  | 427 |  |  | 426 |  |  | 426 |  |  |  | 426 |  |  | 427 |
Efficiency | 74 | % |  | 69 | % |  | 65 | % |  | 61 | % |  | 64 | % |  |  | 68 | % |  | 61 | %
Noninterest income to total revenue | 44 | % |  | 45 | % |  | 45 | % |  | 44 | % |  | 42 | % |  |  | 45 | % |  | 41 | %
Effective tax rate from continuing operations (c) | 21.5 | % |  | 17.8 | % |  | 16.1 | % |  | 16.9 | % |  | 17.0 | % |  |  | 18.1 | % |  | 12.4 | %

(a)Includes net gains on sales of securities of $14 million, $15 million, $10 million, $25 million, and $51 million for the quarters ended December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020, respectively, and $64 million and $305 million for the twelve months ended December 31, 2021 and December 31, 2020, respectively.
(b)Dividends are payable quarterly other than Series R and Series S preferred stock, which are payable semiannually.
(c)The effective income tax rates are generally lower than the statutory rate due to the relationship of pretax income to tax credits and earnings that are not subject to tax.

THE PNC FINANCIAL SERVICES GROUP, INC. | Page 2

Table 2: Consolidated Balance Sheet (Unaudited)

| December 31 |  | September 30 |  | June 30 |  | March 31 |  | December 31
In millions, except par value | 2021 |  | 2021 |  | 2021 |  | 2021 |  | 2020
Assets |  |  |  |  |  |  |  |  |
Cash and due from banks | $ | 8,004 |  |  | $ | 8,843 |  |  | $ | 8,724 |  |  | $ | 7,455 |  |  | $ | 7,017 |
Interest-earning deposits with banks (a) | 74,250 |  |  | 75,478 |  |  | 72,447 |  |  | 86,161 |  |  | 85,173 |
Loans held for sale (b) | 2,231 |  |  | 2,121 |  |  | 2,227 |  |  | 1,967 |  |  | 1,597 |
Investment securities – available for sale | 131,536 |  |  | 124,127 |  |  | 125,058 |  |  | 96,799 |  |  | 87,358 |
Investment securities – held to maturity | 1,426 |  |  | 1,479 |  |  | 1,485 |  |  | 1,456 |  |  | 1,441 |
Loans (b) | 288,372 |  |  | 290,230 |  |  | 294,704 |  |  | 237,013 |  |  | 241,928 |
Allowance for loan and lease losses | (4,868) |  |  | (5,355) |  |  | (5,730) |  |  | (4,714) |  |  | (5,361) |
Net loans | 283,504 |  |  | 284,875 |  |  | 288,974 |  |  | 232,299 |  |  | 236,567 |
Equity investments | 8,180 |  |  | 7,737 |  |  | 7,521 |  |  | 6,386 |  |  | 6,052 |
Mortgage servicing rights | 1,818 |  |  | 1,833 |  |  | 1,793 |  |  | 1,680 |  |  | 1,242 |
Goodwill | 10,916 |  |  | 10,885 |  |  | 10,958 |  |  | 9,317 |  |  | 9,233 |
Other (b) | 36,583 |  |  | 36,137 |  |  | 35,025 |  |  | 30,894 |  |  | 30,999 |
Total assets | $ | 558,448 |  |  | $ | 553,515 |  |  | $ | 554,212 |  |  | $ | 474,414 |  |  | $ | 466,679 |
Liabilities |  |  |  |  |  |  |  |  |
Deposits |  |  |  |  |  |  |  |  |
Noninterest-bearing | $ | 155,175 |  |  | $ | 156,305 |  |  | $ | 154,190 |  |  | $ | 120,641 |  |  | $ | 112,637 |
Interest-bearing | 302,103 |  |  | 292,597 |  |  | 298,693 |  |  | 254,426 |  |  | 252,708 |
Total deposits | 457,278 |  |  | 448,902 |  |  | 452,883 |  |  | 375,067 |  |  | 365,345 |
Borrowed funds |  |  |  |  |  |  |  |  |
Federal Home Loan Bank borrowings |  |  |  |  |  |  | 1,500 |  |  | 3,500 |
Bank notes and senior debt | 20,661 |  |  | 22,993 |  |  | 24,408 |  |  | 22,139 |  |  | 24,271 |
Subordinated debt | 6,996 |  |  | 7,074 |  |  | 7,120 |  |  | 6,241 |  |  | 6,403 |
Other (b) | 3,127 |  |  | 3,404 |  |  | 3,285 |  |  | 3,150 |  |  | 3,021 |
Total borrowed funds | 30,784 |  |  | 33,471 |  |  | 34,813 |  |  | 33,030 |  |  | 37,195 |
Allowance for unfunded lending related commitments | 662 |  |  | 646 |  |  | 645 |  |  | 507 |  |  | 584 |
Accrued expenses and other liabilities | 13,998 |  |  | 14,199 |  |  | 11,186 |  |  | 11,931 |  |  | 9,514 |
Total liabilities | 502,722 |  |  | 497,218 |  |  | 499,527 |  |  | 420,535 |  |  | 412,638 |
Equity |  |  |  |  |  |  |  |  |
Preferred stock (c) |  |  |  |  |  |  |  |  |
Common stock - $5 par value |  |  |  |  |  |  |  |  |
Authorized 800 shares, issued 543 shares | 2,713 |  |  | 2,713 |  |  | 2,713 |  |  | 2,713 |  |  | 2,713 |
Capital surplus | 17,457 |  |  | 17,453 |  |  | 15,928 |  |  | 15,879 |  |  | 15,884 |
Retained earnings | 50,228 |  |  | 49,541 |  |  | 48,663 |  |  | 48,113 |  |  | 46,848 |
Accumulated other comprehensive income | 409 |  |  | 1,079 |  |  | 1,463 |  |  | 1,290 |  |  | 2,770 |
Common stock held in treasury at cost: 123, 120, 118, 118, and 119 shares | (15,112) |  |  | (14,527) |  |  | (14,140) |  |  | (14,146) |  |  | (14,205) |
Total shareholders’ equity | 55,695 |  |  | 56,259 |  |  | 54,627 |  |  | 53,849 |  |  | 54,010 |
Noncontrolling interests | 31 |  |  | 38 |  |  | 58 |  |  | 30 |  |  | 31 |
Total equity | 55,726 |  |  | 56,297 |  |  | 54,685 |  |  | 53,879 |  |  | 54,041 |
Total liabilities and equity | $ | 558,448 |  |  | $ | 553,515 |  |  | $ | 554,212 |  |  | $ | 474,414 |  |  | $ | 466,679 |

(a)Amounts include balances held with the Federal Reserve Bank of $73.8 billion, $75.1 billion, $71.9 billion, $85.8 billion and $84.9 billion as of December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020, respectively.
(b)Amounts include assets and liabilities for which PNC has elected the fair value option. Our 2021 Form 10-Qs included, and our 2021 Form 10-K 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) |  |  |  |  |
| Three months ended |  |  | Year ended
| December 31 |  | September 30 |  | June 30 |  | March 31 |  | December 31 |  |  | December 31 |  | December 31
In millions | 2021 |  | 2021 |  | 2021 |  | 2021 |  | 2020 |  |  | 2021 |  | 2020
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-earning assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment securities |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency | $ | 64,521 |  |  | $ | 63,163 |  |  | $ | 56,042 |  |  | $ | 45,298 |  |  | $ | 48,036 |  |  |  | $ | 57,325 |  |  | $ | 50,594 |
Non-agency | 974 |  |  | 1,051 |  | 1,142 |  | 1,236 |  | 1,337 |  |  | 1,100 |  | 1,480 |
Commercial mortgage-backed | 5,538 |  |  | 6,134 |  | 6,465 |  | 6,241 |  | 6,568 |  |  | 6,093 |  | 6,865 |
Asset-backed | 6,206 |  | 5,608 |  | 5,855 |  | 5,304 |  | 5,017 |  |  | 5,745 |  | 5,090 |
U.S. Treasury and government agencies | 44,415 |  | 38,149 |  | 32,419 |  | 22,309 |  | 18,783 |  |  | 34,394 |  | 17,234 |
Other | 4,741 |  | 4,994 |  | 5,107 |  | 4,561 |  | 4,561 |  |  | 4,852 |  | 4,564 |
Total securities available for sale | 126,395 |  | 119,099 |  | 107,030 |  | 84,949 |  | 84,302 |  |  | 109,509 |  | 85,827
Securities held to maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |
Asset-backed |  |  |  |  |  |  |  |  |  |  |  |  |  | 18 |
U.S. Treasury and government agencies | 812 |  | 807 |  | 802 |  | 797 |  | 793 |  |  | 805 |  | 786 |
Other | 642 |  | 680 |  | 671 |  | 650 |  | 650 |  |  | 660 |  | 648 |
Total securities held to maturity | 1,454 |  | 1,487 |  | 1,473 |  | 1,447 |  | 1,443 |  |  | 1,465 |  | 1,452
Total investment securities | 127,849 |  | 120,586 |  | 108,503 |  | 86,396 |  | 85,745 |  |  | 110,974 |  | 87,279
Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial | 152,355 |  | 152,964 |  | 137,892 |  | 129,996 |  | 134,944 |  |  | 143,389 |  | 139,254 |
Commercial real estate | 35,256 |  | 37,054 |  | 31,611 |  | 28,598 |  | 28,991 |  |  | 33,159 |  | 28,765 |
Equipment lease financing | 6,183 |  | 6,300 |  | 6,332 |  | 6,332 |  | 6,380 |  |  | 6,286 |  | 6,812 |
Consumer | 56,244 |  | 57,533 |  | 52,575 |  | 50,904 |  | 52,872 |  |  | 54,338 |  | 55,423 |
Residential real estate | 38,872 |  | 37,475 |  | 27,197 |  | 22,305 |  | 22,638 |  |  | 31,524 |  | 22,379 |
Total loans | 288,910 |  | 291,326 |  | 255,607 |  | 238,135 |  | 245,825 |  |  | 268,696 |  | 252,633
Interest-earning deposits with banks (b) | 75,377 |  | 80,274 |  | 78,522 |  | 85,410 |  | 76,374 |  |  | 79,869 |  | 47,333 |
Other interest-earning assets | 9,112 |  | 9,113 |  | 8,079 |  | 7,829 |  | 8,134 |  |  | 8,539 |  | 9,553 |
Total interest-earning assets | 501,248 |  | 501,299 |  | 450,711 |  | 417,770 |  | 416,078 |  |  | 468,078 |  | 396,798
Noninterest-earning assets | 59,032 |  | 57,943 |  | 53,718 |  | 50,450 |  | 48,901 |  |  | 55,317 |  | 52,497 |
Total assets | $ | 560,280 |  |  | $ | 559,242 |  |  | $ | 504,429 |  |  | $ | 468,220 |  |  | $ | 464,979 |  |  |  | $ | 523,395 |  |  | $ | 449,295 |
Liabilities and Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing deposits |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market | $ | 65,214 |  |  | $ | 82,911 |  |  | $ | 64,990 |  |  | $ | 59,083 |  |  | $ | 62,621 |  |  |  | $ | 68,124 |  |  | $ | 60,229 |
Demand | 108,345 |  | 106,588 |  | 99,091 |  | 91,619 |  | 88,026 |  |  | 101,471 |  | 82,295 |
Savings | 104,644 |  | 89,679 |  | 87,307 |  | 82,926 |  | 79,430 |  |  | 91,194 |  | 75,574 |
Time deposits | 18,029 |  | 19,293 |  | 18,048 |  | 18,449 |  | 19,448 |  |  | 18,439 |  | 20,673 |
Total interest-bearing deposits | 296,232 |  | 298,471 |  | 269,436 |  | 252,077 |  | 249,525 |  |  | 279,228 |  | 238,771
Borrowed funds |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal Home Loan Bank borrowings |  |  |  |  | 265 |  | 2,411 |  | 4,761 |  |  | 661 |  | 9,470 |
Bank notes and senior debt | 21,581 |  | 22,573 |  | 22,620 |  | 22,799 |  | 24,022 |  |  | 22,390 |  | 27,030 |
Subordinated debt | 6,779 |  | 6,787 |  | 6,218 |  | 5,929 |  | 5,936 |  |  | 6,432 |  | 5,936 |
Other | 5,987 |  | 4,992 |  | 5,046 |  | 4,057 |  | 3,433 |  |  | 5,025 |  | 5,502 |
Total borrowed funds | 34,347 |  | 34,352 |  | 34,149 |  | 35,196 |  | 38,152 |  |  | 34,508 |  | 47,938
Total interest-bearing liabilities | 330,579 |  | 332,823 |  | 303,585 |  | 287,273 |  | 287,677 |  |  | 313,736 |  | 286,709
Noninterest-bearing liabilities and equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing deposits | 156,549 |  | 155,948 |  | 132,283 |  | 113,299 |  | 109,878 |  |  | 139,683 |  | 95,055 |
Accrued expenses and other liabilities | 17,726 |  | 15,332 |  | 14,755 |  | 14,258 |  | 14,348 |  |  | 15,528 |  | 15,774 |
Equity | 55,426 |  | 55,139 |  | 53,806 |  | 53,390 |  | 53,076 |  |  | 54,448 |  | 51,757 |
Total liabilities and equity | $ | 560,280 |  |  | $ | 559,242 |  |  | $ | 504,429 |  |  | $ | 468,220 |  |  | $ | 464,979 |  |  |  | $ | 523,395 |  |  | $ | 449,295 |

(a)Calculated using average daily balances.
(b)Amounts include average balances held with the Federal Reserve Bank of Cleveland of $75.1 billion, $80.1 billion, $78.3 billion, $85.2 billion and $76.1 billion for the three months ended December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020, and $79.6 billion and $47.0 billion for the twelve months ended December 31, 2021 and December 31, 2020, respectively.

THE PNC FINANCIAL SERVICES GROUP, INC. | Page 4

Table 4: Details of Net Interest Margin (Unaudited) |  |  |  |  |
| Three months ended |  |  | Year ended
| December 31 |  | September 30 |  | June 30 |  | March 31 |  | December 31 |  |  | December 31 |  | December 31
| 2021 |  | 2021 |  | 2021 |  | 2021 |  | 2020 |  |  | 2021 |  | 2020
Average yields/rates (a) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Yield on interest-earning assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment securities |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency | 1.47 | % |  | 1.41 | % |  | 1.61 | % |  | 1.72 | % |  | 1.81 | % |  |  | 1.54 | % |  | 2.19 | %
Non-agency | 7.36 | % |  | 8.07 | % |  | 7.85 | % |  | 7.24 | % |  | 7.15 | % |  |  | 7.64 | % |  | 7.36 | %
Commercial mortgage-backed | 2.37 | % |  | 2.34 | % |  | 2.49 | % |  | 2.58 | % |  | 2.66 | % |  |  | 2.45 | % |  | 2.67 | %
Asset-backed | 1.48 | % |  | 1.50 | % |  | 2.07 | % |  | 1.84 | % |  | 2.04 | % |  |  | 1.72 | % |  | 2.53 | %
U.S. Treasury and government agencies | 1.17 | % |  | 1.18 | % |  | 1.30 | % |  | 1.68 | % |  | 1.77 | % |  |  | 1.30 | % |  | 1.88 | %
Other | 2.77 | % |  | 2.90 | % |  | 3.00 | % |  | 3.28 | % |  | 3.45 | % |  |  | 2.97 | % |  | 3.51 | %
Total securities available for sale | 1.50 | % |  | 1.51 | % |  | 1.73 | % |  | 1.95 | % |  | 2.05 | % |  |  | 1.65 | % |  | 2.35 | %
Securities held to maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and government agencies | 2.89 | % |  | 2.88 | % |  | 2.86 | % |  | 2.83 | % |  | 2.88 | % |  |  | 2.86 | % |  | 2.80 | %
Other | 4.20 | % |  | 4.33 | % |  | 3.67 | % |  | 4.17 | % |  | 4.20 | % |  |  | 4.09 | % |  | 4.32 | %
Total securities held to maturity | 3.47 | % |  | 3.54 | % |  | 3.23 | % |  | 3.43 | % |  | 3.47 | % |  |  | 3.41 | % |  | 3.44 | %
Total investment securities | 1.52 | % |  | 1.54 | % |  | 1.75 | % |  | 1.97 | % |  | 2.08 | % |  |  | 1.67 | % |  | 2.36 | %
Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial | 2.90 | % |  | 2.80 | % |  | 2.89 | % |  | 2.91 | % |  | 2.87 | % |  |  | 2.92 | % |  | 3.07 | %
Commercial real estate | 2.86 | % |  | 3.17 | % |  | 2.92 | % |  | 2.80 | % |  | 2.63 | % |  |  | 2.99 | % |  | 2.98 | %
Equipment lease financing | 3.81 | % |  | 3.83 | % |  | 3.76 | % |  | 3.90 | % |  | 3.90 | % |  |  | 3.82 | % |  | 3.86 | %
Consumer | 4.71 | % |  | 4.85 | % |  | 4.82 | % |  | 4.78 | % |  | 4.74 | % |  |  | 4.79 | % |  | 4.93 | %
Residential real estate | 3.26 | % |  | 3.15 | % |  | 3.50 | % |  | 3.53 | % |  | 3.69 | % |  |  | 3.32 | % |  | 3.81 | %
Total loans | 3.32 | % |  | 3.32 | % |  | 3.38 | % |  | 3.38 | % |  | 3.35 | % |  |  | 3.37 | % |  | 3.55 | %
Interest-earning deposits with banks | 0.15 | % |  | 0.16 | % |  | 0.11 | % |  | 0.10 | % |  | 0.10 | % |  |  | 0.13 | % |  | 0.21 | %
Other interest-earning assets | 2.14 | % |  | 2.03 | % |  | 2.46 | % |  | 2.34 | % |  | 1.99 | % |  |  | 2.23 | % |  | 2.50 | %
Total yield on interest-earning assets | 2.36 | % |  | 2.36 | % |  | 2.40 | % |  | 2.40 | % |  | 2.46 | % |  |  | 2.39 | % |  | 2.87 | %
Rate on interest-bearing liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing deposits |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market | 0.02 | % |  | 0.03 | % |  | 0.03 | % |  | 0.03 | % |  | 0.05 | % |  |  | 0.03 | % |  | 0.23 | %
Demand | 0.02 | % |  | 0.03 | % |  | 0.03 | % |  | 0.04 | % |  | 0.04 | % |  |  | 0.03 | % |  | 0.13 | %
Savings | 0.04 | % |  | 0.04 | % |  | 0.05 | % |  | 0.06 | % |  | 0.08 | % |  |  | 0.05 | % |  | 0.31 | %
Time deposits | 0.11 | % |  | 0.12 | % |  | 0.20 | % |  | 0.32 | % |  | 0.41 | % |  |  | 0.18 | % |  | 0.79 | %
Total interest-bearing deposits | 0.04 | % |  | 0.04 | % |  | 0.05 | % |  | 0.06 | % |  | 0.08 | % |  |  | 0.05 | % |  | 0.27 | %
Borrowed funds |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal Home Loan Bank borrowings |  |  |  |  | 0.35 | % |  | 0.43 | % |  | 0.40 | % |  |  | 0.45 | % |  | 1.09 | %
Bank notes and senior debt | 0.94 | % |  | 0.97 | % |  | 0.98 | % |  | 1.04 | % |  | 1.00 | % |  |  | 1.00 | % |  | 1.58 | %
Subordinated debt | 1.28 | % |  | 1.28 | % |  | 1.35 | % |  | 1.43 | % |  | 1.38 | % |  |  | 1.34 | % |  | 1.89 | %
Other | 0.79 | % |  | 0.93 | % |  | 0.97 | % |  | 1.21 | % |  | 1.39 | % |  |  | 0.96 | % |  | 1.36 | %
Total borrowed funds | 0.98 | % |  | 1.03 | % |  | 1.04 | % |  | 1.09 | % |  | 1.02 | % |  |  | 1.05 | % |  | 1.50 | %
Total rate on interest-bearing liabilities | 0.13 | % |  | 0.14 | % |  | 0.16 | % |  | 0.19 | % |  | 0.21 | % |  |  | 0.16 | % |  | 0.47 | %
Interest rate spread | 2.23 | % |  | 2.22 | % |  | 2.24 | % |  | 2.21 | % |  | 2.25 | % |  |  | 2.23 | % |  | 2.40 | %
Benefit from use of noninterest bearing sources (b) | 0.04 | % |  | 0.05 | % |  | 0.05 | % |  | 0.06 | % |  | 0.07 | % |  |  | 0.06 | % |  | 0.13 | %
Net interest margin | 2.27 | % |  | 2.27 | % |  | 2.29 | % |  | 2.27 | % |  | 2.32 | % |  |  | 2.29 | % |  | 2.53 | %

(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 December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020 were $22 million, $22 million, $15 million, $15 million and $17 million, respectively. The taxable-equivalent adjustments to net interest income for the twelve months ended December 31, 2021 and December 31, 2020 were $74 million and $75 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: Details of Loans (Unaudited)

|  | December 31 |  | September 30 |  | June 30 |  | March 31 |  | December 31
In millions |  | 2021 |  | 2021 |  | 2021 |  | 2021 |  | 2020
Commercial |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 152,933 |  |  | $ | 152,735 |  |  | $ | 155,300 |  |  | $ | 129,798 |  |  | $ | 132,073 |
Commercial real estate |  | 34,015 |  |  | 36,195 |  |  | 37,964 |  |  | 28,319 |  |  | 28,716 |
Equipment lease financing |  | 6,130 |  |  | 6,257 |  |  | 6,376 |  |  | 6,389 |  |  | 6,414 |
Total commercial |  | 193,078 |  | 195,187 |  | 199,640 |  | 164,506 |  | 167,203
Consumer |  |  |  |  |  |  |  |  |  |
Residential real estate |  | 39,712 |  |  | 38,214 |  |  | 36,846 |  |  | 22,418 |  |  | 22,560 |
Home equity |  | 24,061 |  |  | 24,479 |  |  | 25,174 |  |  | 23,493 |  |  | 24,088 |
Automobile |  | 16,635 |  |  | 17,265 |  |  | 17,551 |  |  | 13,584 |  |  | 14,218 |
Credit card |  | 6,626 |  |  | 6,466 |  |  | 6,528 |  |  | 5,675 |  |  | 6,215 |
Education |  | 2,533 |  |  | 2,653 |  |  | 2,726 |  |  | 2,842 |  |  | 2,946 |
Other consumer |  | 5,727 |  |  | 5,966 |  |  | 6,239 |  |  | 4,495 |  |  | 4,698 |
Total consumer |  | 95,294 |  |  | 95,043 |  |  | 95,064 |  |  | 72,507 |  |  | 74,725 |
Total loans |  | $ | 288,372 |  |  | $ | 290,230 |  |  | $ | 294,704 |  |  | $ | 237,013 |  |  | $ | 241,928 |

THE PNC FINANCIAL SERVICES GROUP, INC. | Page 6

Allowance for Credit Losses (Unaudited)
Table 6: Change in Allowance for Loan and Lease Losses

|  | Three months ended |  |  | Year ended
|  | December 31 |  | September 30 |  | June 30 |  | March 31 |  | December 31 |  |  | December 31 |  | December 31
Dollars in millions |  | 2021 |  | 2021 |  | 2021 |  | 2021 |  | 2020 |  |  | 2021 |  | 2020
Allowance for loan and lease losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 5,355 |  |  | $ | 5,730 |  |  | $ | 4,714 |  |  | $ | 5,361 |  |  | $ | 5,751 |  |  |  | $ | 5,361 |  |  | $ | 2,742 |
Adoption of ASU 2016-03 (a) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 463 |
Acquisition PCD reserves |  |  |  | (59) |  |  | 1,115 |  |  |  |  |  |  |  | 1,056 |  |  |
Gross charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | (35) |  |  | (46) |  |  | (245) |  |  | (59) |  |  | (133) |  |  |  | (385) |  |  | (382) |
Commercial real estate |  | (2) |  |  | (1) |  |  | (28) |  |  | (5) |  |  | (1) |  |  |  | (36) |  |  | (2) |
Equipment lease financing |  | (4) |  |  | (3) |  |  | (1) |  |  | (5) |  |  | (4) |  |  |  | (13) |  |  | (23) |
Residential real estate |  | (4) |  |  | (4) |  |  | (3) |  |  | (4) |  |  | (6) |  |  |  | (15) |  |  | (10) |
Home equity |  | (4) |  |  | (2) |  |  | (7) |  |  | (7) |  |  | (11) |  |  |  | (20) |  |  | (42) |
Automobile |  | (49) |  |  | (33) |  |  | (35) |  |  | (52) |  |  | (55) |  |  |  | (169) |  |  | (265) |
Credit card |  | (60) |  |  | (62) |  |  | (65) |  |  | (69) |  |  | (72) |  |  |  | (256) |  |  | (300) |
Education |  | (4) |  |  | (3) |  |  | (3) |  |  | (5) |  |  | (3) |  |  |  | (15) |  |  | (16) |
Other consumer |  | (62) |  |  | (52) |  |  | (41) |  |  | (37) |  |  | (42) |  |  |  | (192) |  |  | (152) |
Total gross charge-offs |  | (224) |  |  | (206) |  |  | (428) |  |  | (243) |  |  | (327) |  |  |  | (1,101) |  |  | (1,192) |
Recoveries: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | 20 |  |  | 25 |  |  | 29 |  |  | 14 |  |  | 23 |  |  |  | 88 |  |  | 75 |
Commercial real estate |  | 2 |  |  | 2 |  |  | 2 |  |  | 1 |  |  | 3 |  |  |  | 7 |  |  | 9 |
Equipment lease financing |  | 3 |  |  | 2 |  |  | 3 |  |  | 3 |  |  | 3 |  |  |  | 11 |  |  | 10 |
Residential real estate |  | 8 |  |  | 9 |  |  | 6 |  |  | 5 |  |  | 4 |  |  |  | 28 |  |  | 16 |
Home equity |  | 23 |  |  | 25 |  |  | 21 |  |  | 17 |  |  | 17 |  |  |  | 86 |  |  | 61 |
Automobile |  | 26 |  |  | 38 |  |  | 41 |  |  | 38 |  |  | 33 |  |  |  | 143 |  |  | 128 |
Credit card |  | 10 |  |  | 13 |  |  | 11 |  |  | 12 |  |  | 9 |  |  |  | 46 |  |  | 35 |
Education |  | 2 |  |  | 2 |  |  | 2 |  |  | 2 |  |  | 2 |  |  |  | 8 |  |  | 8 |
Other consumer |  | 6 |  |  | 9 |  |  | 7 |  |  | 5 |  |  | 4 |  |  |  | 27 |  |  | 18 |
Total recoveries |  | 100 |  |  | 125 |  |  | 122 |  |  | 97 |  |  | 98 |  |  |  | 444 |  |  | 360 |
Net (charge-offs) / recoveries: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | (15) |  |  | (21) |  |  | (216) |  |  | (45) |  |  | (110) |  |  |  | (297) |  |  | (307) |
Commercial real estate |  |  |  | 1 |  |  | (26) |  |  | (4) |  |  | 2 |  |  |  | (29) |  |  | 7 |
Equipment lease financing |  | (1) |  |  | (1) |  |  | 2 |  |  | (2) |  |  | (1) |  |  |  | (2) |  |  | (13) |
Residential real estate |  | 4 |  |  | 5 |  |  | 3 |  |  | 1 |  |  | (2) |  |  |  | 13 |  |  | 6 |
Home equity |  | 19 |  |  | 23 |  |  | 14 |  |  | 10 |  |  | 6 |  |  |  | 66 |  |  | 19 |
Automobile |  | (23) |  |  | 5 |  |  | 6 |  |  | (14) |  |  | (22) |  |  |  | (26) |  |  | (137) |
Credit card |  | (50) |  |  | (49) |  |  | (54) |  |  | (57) |  |  | (63) |  |  |  | (210) |  |  | (265) |
Education |  | (2) |  |  | (1) |  |  | (1) |  |  | (3) |  |  | (1) |  |  |  | (7) |  |  | (8) |
Other consumer |  | (56) |  |  | (43) |  |  | (34) |  |  | (32) |  |  | (38) |  |  |  | (165) |  |  | (134) |
Total net (charge-offs) (b) |  | (124) |  |  | (81) |  |  | (306) |  |  | (146) |  |  | (229) |  |  |  | (657) |  |  | (832) |
Provision for (recapture of) credit losses (c) |  | (362) |  |  | (229) |  |  | 206 |  |  | (502) |  |  | (164) |  |  |  | (887) |  |  | 2,985 |
Other |  | (1) |  |  | (6) |  |  | 1 |  |  | 1 |  |  | 3 |  |  |  | (5) |  |  | 3 |
Ending balance |  | $ | 4,868 |  |  | $ | 5,355 |  |  | $ | 5,730 |  |  | $ | 4,714 |  |  | $ | 5,361 |  |  |  | $ | 4,868 |  |  | $ | 5,361 |
Supplemental Information |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net charge-offs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial net charge-offs |  | $ | (16) |  |  | $ | (21) |  |  | $ | (240) |  |  | $ | (51) |  |  | $ | (109) |  |  |  | $ | (328) |  |  | $ | (313) |
Consumer net charge-offs |  | (108) |  |  | (60) |  |  | (66) |  |  | (95) |  |  | (120) |  |  |  | (329) |  |  | (519) |
Total net charge-offs (b) |  | $ | (124) |  |  | $ | (81) |  |  | $ | (306) |  |  | $ | (146) |  |  | $ | (229) |  |  |  | $ | (657) |  |  | $ | (832) |
Net charge-offs to average loans (d) |  | 0.17 | % |  | 0.11 | % |  | 0.48 | % |  | 0.25 | % |  | 0.37 | % |  |  | 0.24 | % |  | 0.33 | %
Commercial |  | 0.03 | % |  | 0.04 | % |  | 0.55 | % |  | 0.13 | % |  | 0.25 | % |  |  | 0.18 | % |  | 0.18 | %
Consumer |  | 0.45 | % |  | 0.25 | % |  | 0.33 | % |  | 0.53 | % |  | 0.63 | % |  |  | 0.38 | % |  | 0.67 | %

(a) Represents the impact of adopting ASU 2016-13, Financial Instruments - Credit Losses on January 1, 2020, and our transition from an incurred loss methodology for our reserves to an expected credit loss methodology. Our 2020 Form 10-K included additional information related to our adoption of the CECL standard.
(b) Amounts for the three months ended June 30, 2021 included $248 million attributable to BBVA, primarily related to commercial industrial loans, which were largely the result of required purchase accounting treatment for the BBVA acquisition on June 1, 2021.
(c) See Table 7 for the components of the Provision for (recapture of) credit losses being reported on the Consolidated Income Statement.
(d) Three month period percentages are annualized.

THE PNC FINANCIAL SERVICES GROUP, INC. | Page 7

Allowance for Credit Losses (Unaudited) (Continued)
Table 7: Components of the Provision for (Recapture of) Credit Losses

|  | Three months ended |  |  | Year ended
|  | December 31 |  | September 30 |  | June 30 |  | March 31 |  | December 31 |  |  | December 31 |  | December 31
In millions |  | 2021 |  | 2021 |  | 2021 (a) |  | 2021 |  | 2020 |  |  | 2021 (a) |  | 2020
Provision for (recapture of) credit losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and leases |  | $ | (362) |  |  | $ | (229) |  |  | $ | 206 |  |  | $ | (502) |  |  | $ | (164) |  |  |  | (887) |  |  | $ | 2,985 |
Unfunded lending related commitments |  | 16 |  |  | 1 |  |  | 92 |  |  | (77) |  |  | (105) |  |  |  | 32 |  |  | 87 |
Investment securities |  |  |  | 25 |  |  |  |  | 26 |  |  | 11 |  |  |  | 51 |  |  | 80 |
Other financial assets |  | 19 |  |  |  |  | 4 |  |  | 2 |  |  | 4 |  |  |  | 25 |  |  | 23 |
Total provision for (recapture of) credit losses |  | $ | (327) |  |  | $ | (203) |  |  | $ | 302 |  |  | $ | (551) |  |  | $ | (254) |  |  |  | $ | (779) |  |  | $ | 3,175 |

(a) Amounts include $1.0 billion of provision for credit losses that was recorded as part of the BBVA acquisition on June 1, 2021.
Table 8: Allowance for Credit Losses by Loan Class (a)

| December 31, 2021 |  | September 30, 2021 |  | December 31, 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 | $ | 1,879 |  |  | $ | 152,933 |  | 1.23 | % |  | $ | 2,173 |  |  | $ | 152,735 |  | 1.42 | % |  | $ | 2,300 |  |  | $ | 132,073 |  | 1.74 | %
Commercial real estate | 1,216 |  |  | 34,015 |  | 3.57 | % |  | 1,312 |  |  | 36,195 |  | 3.62 | % |  | 880 |  |  | 28,716 |  | 3.06 | %
Equipment lease financing | 90 |  |  | 6,130 |  | 1.47 | % |  | 118 |  |  | 6,257 |  | 1.89 | % |  | 157 |  |  | 6,414 |  | 2.45 | %
Total commercial | 3,185 |  |  | 193,078 |  | 1.65 | % |  | 3,603 |  |  | 195,187 |  | 1.85 | % |  | 3,337 |  |  | 167,203 |  | 2.00 | %
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate | 21 |  |  | 39,712 |  | 0.05 | % |  | 42 |  |  | 38,214 |  | 0.11 | % |  | 28 |  |  | 22,560 |  | 0.12 | %
Home equity | 149 |  |  | 24,061 |  | 0.62 | % |  | 167 |  |  | 24,479 |  | 0.68 | % |  | 313 |  |  | 24,088 |  | 1.30 | %
Automobile | 372 |  |  | 16,635 |  | 2.24 | % |  | 365 |  |  | 17,265 |  | 2.11 | % |  | 379 |  |  | 14,218 |  | 2.67 | %
Credit card | 712 |  |  | 6,626 |  | 10.75 | % |  | 701 |  |  | 6,466 |  | 10.84 | % |  | 816 |  |  | 6,215 |  | 13.13 | %
Education | 71 |  |  | 2,533 |  | 2.80 | % |  | 81 |  |  | 2,653 |  | 3.05 | % |  | 129 |  |  | 2,946 |  | 4.38 | %
Other consumer | 358 |  |  | 5,727 |  | 6.25 | % |  | 396 |  |  | 5,966 |  | 6.64 | % |  | 359 |  |  | 4,698 |  | 7.64 | %
Total consumer | 1,683 |  |  | 95,294 |  | 1.77 | % |  | 1,752 |  |  | 95,043 |  | 1.84 | % |  | 2,024 |  |  | 74,725 |  | 2.71 | %
Total | 4,868 |  |  | $ | 288,372 |  | 1.69 | % |  | 5,355 |  |  | $ | 290,230 |  | 1.85 | % |  | 5,361 |  |  | $ | 241,928 |  | 2.22 | %
Allowance for unfunded lending related commitments | 662 |  |  |  |  |  | 646 |  |  |  |  |  | 584 |  |  |  |
Allowance for credit losses | $ | 5,530 |  |  |  |  |  | $ | 6,001 |  |  |  |  |  | $ | 5,945 |  |  |  |
Supplemental Information |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses to total loans |  |  |  | 1.92 | % |  |  |  |  | 2.07 | % |  |  |  |  | 2.46 | %
Commercial |  |  |  | 1.94 | % |  |  |  |  | 2.12 | % |  |  |  |  | 2.29 | %
Consumer |  |  |  | 1.87 | % |  |  |  |  | 1.96 | % |  |  |  |  | 2.84 | %

(a) Excludes allowances for investment securities and other financial assets, which together totaled $171 million, $162 million and $109 million at December 31, 2021, September 30, 2021 and December 31, 2020, respectively.

THE PNC FINANCIAL SERVICES GROUP, INC. | Page 8

Details of Nonperforming Assets (Unaudited)
Table 9: Nonperforming Assets by Type

|  | December 31 |  | September 30 |  | June 30 |  | March 31 |  | December 31
Dollars in millions |  | 2021 |  | 2021 |  | 2021 |  | 2021 |  | 2020
Nonperforming loans, including TDRs |  |  |  |  |  |  |  |  |  |
Commercial |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  |  |  |  |  |  |  |  |
Service providers |  | $ | 188 |  |  | $ | 220 |  |  | $ | 206 |  |  | $ | 79 |  |  | $ | 90 |
Real estate related (a) |  | 64 |  |  | 49 |  |  | 78 |  |  | 48 |  |  | 95 |
Manufacturing |  | 52 |  |  | 62 |  |  | 65 |  |  | 55 |  |  | 81 |
Retail/wholesale trade |  | 50 |  |  | 59 |  |  | 71 |  |  | 66 |  |  | 61 |
Health care |  | 46 |  |  | 56 |  |  | 71 |  |  | 19 |  |  | 20 |
Transportation and warehousing |  | 18 |  |  | 21 |  |  | 18 |  |  | 18 |  |  | 20 |
Other industries |  | 378 |  |  | 362 |  |  | 421 |  |  | 227 |  |  | 299 |
Total commercial and industrial |  | 796 |  |  | 829 |  |  | 930 |  |  | 512 |  |  | 666 |
Commercial real estate |  | 364 |  |  | 365 |  |  | 501 |  |  | 221 |  |  | 224 |
Equipment lease financing |  | 8 |  |  | 10 |  |  | 15 |  |  | 16 |  |  | 33 |
Total commercial |  | 1,168 |  |  | 1,204 |  |  | 1,446 |  |  | 749 |  |  | 923 |
Consumer (b) |  |  |  |  |  |  |  |  |  |
Residential real estate |  | 517 |  |  | 533 |  |  | 503 |  |  | 541 |  |  | 528 |
Home equity |  | 596 |  |  | 592 |  |  | 626 |  |  | 656 |  |  | 645 |
Automobile |  | 183 |  |  | 184 |  |  | 191 |  |  | 178 |  |  | 175 |
Credit card |  | 7 |  |  | 7 |  |  | 7 |  |  | 7 |  |  | 8 |
Other consumer |  | 9 |  |  | 8 |  |  | 6 |  |  | 7 |  |  | 7 |
Total consumer |  | 1,312 |  |  | 1,324 |  |  | 1,333 |  |  | 1,389 |  |  | 1,363 |
Total nonperforming loans (c) |  | 2,480 |  |  | 2,528 |  |  | 2,779 |  |  | 2,138 |  |  | 2,286 |
OREO and foreclosed assets |  | 26 |  |  | 31 |  |  | 39 |  |  | 41 |  |  | 51 |
Total nonperforming assets |  | $ | 2,506 |  |  | $ | 2,559 |  |  | $ | 2,818 |  |  | $ | 2,179 |  |  | $ | 2,337 |
Nonperforming loans to total loans |  | 0.86 | % |  | 0.87 | % |  | 0.94 | % |  | 0.90 | % |  | 0.94 | %
Nonperforming assets to total loans, OREO and foreclosed assets |  | 0.87 | % |  | 0.88 | % |  | 0.96 | % |  | 0.92 | % |  | 0.97 | %
Nonperforming assets to total assets |  | 0.45 | % |  | 0.46 | % |  | 0.51 | % |  | 0.46 | % |  | 0.50 | %
Allowance for loan and lease losses to nonperforming loans |  | 196 | % |  | 212 | % |  | 206 | % |  | 220 | % |  | 235 | %

(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.
Table 10: Change in Nonperforming Assets

|  | October 1, 2021 - |  | July 1, 2021 - |  | April 1, 2021 - |  | January 1, 2021 - |  | October 1, 2020 -
In millions |  | December 31, 2021 |  | September 30, 2021 |  | June 30, 2021 |  | March 31, 2021 |  | December 31, 2020
Beginning balance |  | $ | 2,559 |  |  | $ | 2,818 |  |  | $ | 2,179 |  |  | $ | 2,337 |  |  | $ | 2,152 |
Acquired nonperforming assets (a) |  |  |  |  |  | 880 |  |  |  |  |
New nonperforming assets |  | 395 |  |  | 365 |  |  | 207 |  |  | 249 |  |  | 586 |
Charge-offs and valuation adjustments |  | (53) |  |  | (71) |  |  | (61) |  |  | (70) |  |  | (97) |
Principal activity, including paydowns and payoffs |  | (240) |  |  | (333) |  |  | (264) |  |  | (186) |  |  | (185) |
Asset sales and transfers to loans held for sale |  | (3) |  |  | (30) |  |  | (15) |  |  | (86) |  |  | (14) |
Returned to performing status |  | (152) |  |  | (190) |  |  | (108) |  |  | (65) |  |  | (105) |
Ending balance |  | $ | 2,506 |  |  | $ | 2,559 |  |  | $ | 2,818 |  |  | $ | 2,179 |  |  | $ | 2,337 |

(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. Our second quarter 2021 Form 10-Q included additional information on the BBVA acquisition.

THE PNC FINANCIAL SERVICES GROUP, INC. | Page 9

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 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 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 third quarter 2021 Form 10-Q included, and our 2021 Form 10-K will include, additional information on COVID-19 related loan modifications.
Table 11: Accruing Loans Past Due 30 to 59 Days (a)

|  | December 31 |  | September 30 |  | June 30 |  | March 31 |  | December 31
Dollars in millions |  | 2021 |  | 2021 |  | 2021 |  | 2021 |  | 2020
Commercial |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 235 |  | $ | 97 |  | $ | 72 |  | $ | 80 |  | $ | 106
Commercial real estate |  | 46 |  | 68 |  | 5 |  | 12 |  | 6
Equipment lease financing |  | 25 |  | 5 |  | 3 |  | 21 |  | 31
Total commercial |  | 306 |  | 170 |  | 80 |  | 113 |  | 143
Consumer |  |  |  |  |  |  |  |  |  |
Residential real estate |  |  |  |  |  |  |  |  |  |
Non government insured (b) |  | 310 |  | 178 |  | 182 |  | 61 |  | 89
Government insured |  | 69 |  | 81 |  | 88 |  | 101 |  | 92
Home equity |  | 53 |  | 45 |  | 44 |  | 43 |  | 50
Automobile |  | 146 |  | 114 |  | 98 |  | 76 |  | 134
Credit card |  | 49 |  | 42 |  | 37 |  | 31 |  | 43
Education |  |  |  |  |  |  |  |  |  |
Non government insured |  | 5 |  | 5 |  | 5 |  | 6 |  | 5
Government insured |  | 38 |  | 40 |  | 41 |  | 43 |  | 50
Other consumer |  | 35 |  | 34 |  | 31 |  | 11 |  | 14
Total consumer |  | 705 |  | 539 |  | 526 |  | 372 |  | 477
Total |  | $ | 1,011 |  | $ | 709 |  | $ | 606 |  | $ | 485 |  | $ | 620
Supplemental Information |  |  |  |  |  |  |  |  |  |
Total accruing loans past due 30-59 days to total loans |  | 0.35 | % |  | 0.24 | % |  | 0.21 | % |  | 0.20 | % |  | 0.26 | %
Commercial |  | 0.16 | % |  | 0.09 | % |  | 0.04 | % |  | 0.07 | % |  | 0.09 | %
Consumer |  | 0.74 | % |  | 0.57 | % |  | 0.55 | % |  | 0.51 | % |  | 0.64 | %

(a)Excludes loans held for sale.
(b)Amounts as of September 30, 2021 and June 30, 2021 have been revised to align the methodology of acquired residential real estate loans attributable to BBVA to PNC's methodology, which resulted in an increase of $50 million and $58 million as of September 30, 2021 and June 30, 2021, respectively. This change was made as a result of the conversion of bank systems completed in October 2021.

THE PNC FINANCIAL SERVICES GROUP, INC. | Page 10

Accruing Loans Past Due (Unaudited) (Continued)
Table 12: Accruing Loans Past Due 60 to 89 Days (a)

|  | December 31 |  | September 30 |  | June 30 |  | March 31 |  | December 31
Dollars in millions |  | 2021 |  | 2021 |  | 2021 |  | 2021 |  | 2020
Commercial |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 72 |  | $ | 50 |  | $ | 27 |  | $ | 13 |  | $ | 26
Commercial real estate |  | 24 |  | 2 |  | 3 |  | 1 |  | 1
Equipment lease financing |  | 2 |  | 4 |  | 4 |  | 1 |  | 5
Total commercial |  | 98 |  | 56 |  | 34 |  | 15 |  | 32
Consumer |  |  |  |  |  |  |  |  |  |
Residential real estate |  |  |  |  |  |  |  |  |  |
Non government insured (b) |  | 78 |  | 53 |  | 53 |  | 13 |  | 16
Government insured |  | 41 |  | 45 |  | 52 |  | 60 |  | 62
Home equity |  | 18 |  | 18 |  | 17 |  | 20 |  | 21
Automobile |  | 40 |  | 23 |  | 20 |  | 19 |  | 34
Credit card |  | 33 |  | 27 |  | 24 |  | 24 |  | 30
Education |  |  |  |  |  |  |  |  |  |
Non government insured |  | 2 |  | 3 |  | 2 |  | 3 |  | 2
Government insured |  | 23 |  | 23 |  | 20 |  | 22 |  | 27
Other consumer |  | 22 |  | 15 |  | 16 |  | 6 |  | 10
Total consumer |  | 257 |  | 207 |  | 204 |  | 167 |  | 202
Total |  | $ | 355 |  | $ | 263 |  | $ | 238 |  | $ | 182 |  | $ | 234
Supplemental Information |  |  |  |  |  |  |  |  |  |
Total accruing loans past due 60-89 days to total loans |  | 0.12 | % |  | 0.09 | % |  | 0.08 | % |  | 0.08 | % |  | 0.10 | %
Commercial |  | 0.05 | % |  | 0.03 | % |  | 0.02 | % |  | 0.01 | % |  | 0.02 | %
Consumer |  | 0.27 | % |  | 0.22 | % |  | 0.21 | % |  | 0.23 | % |  | 0.27 | %

(a)Excludes loans held for sale.
(b)Amounts as of September 30, 2021 and June 30, 2021 have been revised to align the methodology of acquired residential real estate loans attributable to BBVA to PNC's methodology, which resulted in an increase of $18 million and $23 million as of September 30, 2021 and June 30, 2021, respectively. This change was made as a result of the conversion of bank systems completed in October 2021.

THE PNC FINANCIAL SERVICES GROUP, INC. | Page 11

Accruing Loans Past Due (Unaudited) (Continued)
Table 13: Accruing Loans Past Due 90 Days or More (a)

|  | December 31 |  | September 30 |  | June 30 |  | March 31 |  | December 31
Dollars in millions |  | 2021 |  | 2021 |  | 2021 |  | 2021 |  | 2020
Commercial |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 132 |  | $ | 56 |  | $ | 45 |  | $ | 63 |  | $ | 30
Commercial real estate |  | 1 |  | 11 |  | 2 |  |  |  |
Total commercial |  | 133 |  | 67 |  | 47 |  | 63 |  | 30
Consumer |  |  |  |  |  |  |  |  |  |
Residential real estate |  |  |  |  |  |  |  |  |  |
Non government insured (b) |  | 59 |  | 33 |  | 44 |  | 17 |  | 27
Government insured |  | 269 |  | 268 |  | 297 |  | 258 |  | 292
Automobile |  | 14 |  | 4 |  | 3 |  | 6 |  | 12
Credit card |  | 62 |  | 53 |  | 59 |  | 52 |  | 60
Education |  |  |  |  |  |  |  |  |  |
Non government insured |  | 2 |  | 1 |  | 1 |  | 2 |  | 2
Government insured |  | 63 |  | 60 |  | 66 |  | 74 |  | 75
Other consumer |  | 17 |  | 11 |  | 14 |  | 7 |  | 11
Total consumer |  | 486 |  | 430 |  | 484 |  | 416 |  | 479
Total |  | $ | 619 |  | $ | 497 |  | $ | 531 |  | $ | 479 |  | $ | 509
Supplemental Information |  |  |  |  |  |  |  |  |  |
Total accruing loans past due 90 days or more to total loans |  | 0.21 | % |  | 0.17 | % |  | 0.18 | % |  | 0.20 | % |  | 0.21 | %
Commercial |  | 0.07 | % |  | 0.03 | % |  | 0.02 | % |  | 0.04 | % |  | 0.02 | %
Consumer |  | 0.51 | % |  | 0.45 | % |  | 0.51 | % |  | 0.57 | % |  | 0.64 | %
Total accruing loans past due |  | $ | 1,985 |  | $ | 1,469 |  | $ | 1,375 |  | $ | 1,146 |  | $ | 1,363
Commercial |  | $ | 537 |  | $ | 293 |  | $ | 161 |  | $ | 191 |  | $ | 205
Consumer |  | $ | 1,448 |  | $ | 1,176 |  | $ | 1,214 |  | $ | 955 |  | $ | 1,158
Total accruing loans past due to total loans |  | 0.69 | % |  | 0.51 | % |  | 0.47 | % |  | 0.48 | % |  | 0.56 | %
Commercial |  | 0.28 | % |  | 0.15 | % |  | 0.08 | % |  | 0.12 | % |  | 0.12 | %
Consumer |  | 1.52 | % |  | 1.24 | % |  | 1.28 | % |  | 1.32 | % |  | 1.55 | %

(a)Excludes loans held for sale.
(b)Amounts as of September 30, 2021 and June 30, 2021 have been revised to align the methodology of acquired residential real estate loans attributable to BBVA to PNC's methodology, which resulted in an increase of $5 million and $4 million as of September 30, 2021 and June 30, 2021, respectively. This change was made as a result of the conversion of bank systems completed in October 2021.

THE PNC FINANCIAL SERVICES GROUP, INC. | Page 12

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. As a result of the BBVA acquisition, we have become a coast-to-coast Retail Bank. Our national expansion strategy is designed to grow customers with digitally-led banking and a thin branch network as we expand into new markets. Deposit products include checking, savings and money market accounts and certificates of deposit. Lending products include residential mortgages, home equity loans and lines of credit, auto loans, credit cards, education loans and personal and small business loans and lines of credit. The residential mortgage loans are directly originated within our branch network and nationwide, and are typically underwritten to agency and/or third-party standards, and either sold, servicing retained or held on our balance sheet. Brokerage, investment management and cash management products and services include managed, education, retirement and trust accounts.
Corporate & Institutional Banking provides lending, treasury management, and capital markets-related products and services to mid-sized and large corporations, and government and not-for-profit entities. Lending products include secured and unsecured loans, letters of credit and equipment leases. The Treasury Management business provides corporations with cash and investment management services, receivables and disbursement management services, funds transfer services, international payment services and access to online/mobile information management and reporting services. Within Treasury Management, PNC Global Transfers (formerly BBVA Transfer Services, Inc.) provides wholesale money transfer processing capabilities between the U.S. and Mexico and other countries primarily in Central America and South America. Capital markets-related products and services include foreign exchange, derivatives, fixed income, 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 private banking for high net worth and ultra high net worth clients and institutional asset management. The Asset Management group is comprised of two distinct operating units:
•PNC Private Bank provides products and services to emerging affluent, high net worth and ultra high net worth individuals and their families including investment and retirement planning, customized investment management, credit and cash management solutions, and trust management and administration. In addition, multi-generational family planning services are also provided to ultra high net worth individuals and families which include estate, financial, tax, fiduciary and customized performance reporting through PNC Private Bank Hawthorn.
•Institutional Asset Management provides outsourced chief investment officer, custody, private real estate, cash and fixed income client solutions, and retirement plan fiduciary investment services to institutional clients including corporations, healthcare systems, insurance companies, unions, municipalities and non-profits.
Table 14: Period End Employees

| December 31 |  | September 30 |  | June 30 |  | March 31 |  | December 31
| 2021 |  | 2021 |  | 2021 |  | 2021 |  | 2020
Full-time employees |  |  |  |  |  |  |  |  |
Retail Banking | 32,563 |  |  | 33,188 |  |  | 33,471 |  |  | 27,690 |  |  | 27,621 |
Other full-time employees | 25,105 |  |  | 25,442 |  |  | 25,512 |  |  | 22,281 |  |  | 21,928 |
Total full-time employees | 57,668 |  |  | 58,630 |  |  | 58,983 |  |  | 49,971 |  |  | 49,549 |
Part-time employees |  |  |  |  |  |  |  |  |
Retail Banking | 1,669 |  |  | 1,616 |  |  | 1,821 |  |  | 1,697 |  |  | 1,611 |
Other part-time employees | 89 |  |  | 94 |  |  | 431 |  |  | 101 |  |  | 97 |
Total part-time employees | 1,758 |  |  | 1,710 |  |  | 2,252 |  |  | 1,798 |  |  | 1,708 |
Total | 59,426 |  |  | 60,340 |  |  | 61,235 |  |  | 51,769 |  |  | 51,257 |

THE PNC FINANCIAL SERVICES GROUP, INC. | Page 13

Table 15: Summary of Business Segment Net Income and Revenue (Unaudited) (a)

| Three months ended |  |  | Year ended
| December 31 |  | September 30 |  | June 30 |  | March 31 |  | December 31 |  |  | December 31 |  | December 31
In millions | 2021 |  | 2021 |  | 2021 |  | 2021 |  | 2020 |  |  | 2021 |  | 2020
Income |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail Banking | $ | 362 |  |  | $ | 447 |  |  | $ | 232 |  |  | $ | 607 |  |  | $ | 336 |  |  |  | $ | 1,648 |  |  | $ | 844 |
Corporate & Institutional Banking | 1,334 |  |  | 1,123 |  |  | 809 |  |  | 1,058 |  |  | 992 |  |  |  | 4,324 |  |  | 1,674 |
Asset Management Group | 106 |  |  | 114 |  |  | 87 |  |  | 99 |  |  | 82 |  |  |  | 406 |  |  | 255 |
Other | (509) |  |  | (210) |  |  | (37) |  |  | 52 |  |  | 32 |  |  |  | (704) |  |  | 189 |
Net income from continuing operations excluding noncontrolling interests | $ | 1,293 |  |  | $ | 1,474 |  |  | $ | 1,091 |  |  | $ | 1,816 |  |  | $ | 1,442 |  |  |  | $ | 5,674 |  |  | $ | 2,962 |
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail Banking | $ | 2,408 |  |  | $ | 2,375 |  |  | $ | 2,203 |  |  | $ | 2,016 |  |  | $ | 1,853 |  |  |  | $ | 9,002 |  |  | $ | 8,128 |
Corporate & Institutional Banking | 2,281 |  |  | 2,306 |  |  | 1,959 |  |  | 1,808 |  |  | 1,913 |  |  |  | 8,354 |  |  | 7,111 |
Asset Management Group | 388 |  |  | 397 |  |  | 356 |  |  | 322 |  |  | 316 |  |  |  | 1,463 |  |  | 1,211 |
Other | 50 |  |  | 119 |  |  | 149 |  |  | 74 |  |  | 126 |  |  |  | 392 |  |  | 451 |
Total revenue | $ | 5,127 |  |  | $ | 5,197 |  |  | $ | 4,667 |  |  | $ | 4,220 |  |  | $ | 4,208 |  |  |  | $ | 19,211 |  |  | $ | 16,901 |

(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.
Prior to the conversion of bank systems and branches on October 12, 2021, PNC Bank and BBVA customers were served through their respective PNC Bank and BBVA USA branches, websites and mobile apps, financial advisors and relationship managers. Following conversion, there were changes in the segmentation of BBVA USA customers as we integrated data to PNC applications, finalized the review of customer relationships and better aligned customers with PNC's products and services. These changes are reflected in fourth quarter reporting and are considered immaterial.

THE PNC FINANCIAL SERVICES GROUP, INC. | Page 14

Table 16: Retail Banking (Unaudited) (a)

| Three months ended |  |  | Year ended
| December 31 |  | September 30 |  | June 30 |  | March 31 |  | December 31 |  |  | December 31 |  | December 31
Dollars in millions | 2021 |  | 2021 |  | 2021 |  | 2021 |  | 2020 |  |  | 2021 |  | 2020
Income Statement |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income | $ | 1,634 |  |  | $ | 1,713 |  |  | $ | 1,497 |  |  | $ | 1,362 |  |  | $ | 1,380 |  |  |  | $ | 6,206 |  |  | $ | 5,609 |
Noninterest income | 774 |  |  | 662 |  |  | 706 |  |  | 654 |  |  | 473 |  |  |  | 2,796 |  |  | 2,519 |
Total revenue | 2,408 |  |  | 2,375 |  |  | 2,203 |  |  | 2,016 |  |  | 1,853 |  |  |  | 9,002 |  |  | 8,128 |
Provision for (recapture of) credit losses | 55 |  |  | (113) |  |  | 214 |  |  | (257) |  |  | (81) |  |  |  | (101) |  |  | 968 |
Noninterest expense | 1,874 |  |  | 1,889 |  |  | 1,677 |  |  | 1,476 |  |  | 1,482 |  |  |  | 6,916 |  |  | 6,019 |
Pretax earnings | 479 |  |  | 599 |  |  | 312 |  |  | 797 |  |  | 452 |  |  |  | 2,187 |  |  | 1,141 |
Income taxes | 112 |  |  | 140 |  |  | 73 |  |  | 183 |  |  | 105 |  |  |  | 508 |  |  | 266 |
Noncontrolling interests | 5 |  |  | 12 |  |  | 7 |  |  | 7 |  |  | 11 |  |  |  | 31 |  |  | 31 |
Earnings | $ | 362 |  |  | $ | 447 |  |  | $ | 232 |  |  | $ | 607 |  |  | $ | 336 |  |  |  | $ | 1,648 |  |  | $ | 844 |
Average Balance Sheet |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans held for sale | $ | 1,425 |  |  | $ | 1,583 |  |  | $ | 1,405 |  |  | $ | 891 |  |  | $ | 672 |  |  |  | $ | 1,328 |  |  | $ | 745 |
Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate | $ | 30,888 |  |  | $ | 30,702 |  |  | $ | 21,653 |  |  | $ | 17,468 |  |  | $ | 18,042 |  |  |  | $ | 25,230 |  |  | $ | 18,171 |
Home equity | 22,572 |  |  | 23,047 |  |  | 22,080 |  |  | 21,833 |  |  | 22,366 |  |  |  | 22,387 |  |  | 22,633 |
Automobile | 16,944 |  |  | 17,377 |  |  | 14,888 |  |  | 13,890 |  |  | 14,536 |  |  |  | 15,787 |  |  | 15,968 |
Credit card | 6,513 |  |  | 6,484 |  |  | 5,900 |  |  | 5,819 |  |  | 6,218 |  |  |  | 6,182 |  |  | 6,629 |
Education | 2,620 |  |  | 2,712 |  |  | 2,812 |  |  | 2,938 |  |  | 3,027 |  |  |  | 2,770 |  |  | 3,176 |
Other consumer | 2,612 |  |  | 2,892 |  |  | 2,175 |  |  | 1,898 |  |  | 2,086 |  |  |  | 2,397 |  |  | 2,334 |
Total consumer | 82,149 |  |  | 83,214 |  |  | 69,508 |  |  | 63,846 |  |  | 66,275 |  |  |  | 74,753 |  |  | 68,911 |
Commercial | 12,844 |  |  | 15,895 |  |  | 14,796 |  |  | 13,743 |  |  | 13,391 |  |  |  | 14,321 |  |  | 12,573 |
Total loans | $ | 94,993 |  |  | $ | 99,109 |  |  | $ | 84,304 |  |  | $ | 77,589 |  |  | $ | 79,666 |  |  |  | $ | 89,074 |  |  | $ | 81,484 |
Total assets | $ | 114,656 |  |  | $ | 117,394 |  |  | $ | 100,948 |  |  | $ | 92,891 |  |  | $ | 94,303 |  |  |  | $ | 106,551 |  |  | $ | 97,643 |
Deposits |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing | $ | 65,510 |  |  | $ | 65,985 |  |  | $ | 54,260 |  |  | $ | 44,845 |  |  | $ | 43,818 |  |  |  | $ | 57,729 |  |  | $ | 39,754 |
Interest-bearing | 197,312 |  |  | 196,006 |  |  | 178,946 |  |  | 163,389 |  |  | 157,011 |  |  |  | 184,040 |  |  | 150,482 |
Total deposits | $ | 262,822 |  |  | $ | 261,991 |  |  | $ | 233,206 |  |  | $ | 208,234 |  |  | $ | 200,829 |  |  |  | $ | 241,769 |  |  | $ | 190,236 |
Performance Ratios |  |  |  |  |  |  |  |  |  |  |  |  |  |
Return on average assets | 1.25 | % |  | 1.51 | % |  | 0.92 | % |  | 2.65 | % |  | 1.41 | % |  |  | 1.55 | % |  | 0.86 | %
Noninterest income to total revenue | 32 | % |  | 28 | % |  | 32 | % |  | 32 | % |  | 26 | % |  |  | 31 | % |  | 31 | %
Efficiency | 78 | % |  | 80 | % |  | 76 | % |  | 73 | % |  | 80 | % |  |  | 77 | % |  | 74 | %

(a)See note (a) on page 13.

THE PNC FINANCIAL SERVICES GROUP, INC. | Page 15

Retail Banking (Unaudited) (Continued)

| Three months ended |  | Year ended
| December 31 |  | September 30 |  | June 30 |  | March 31 |  | December 31 |  | December 31 |  | December 31
Dollars in millions, except as noted | 2021 |  | 2021 |  | 2021 |  | 2021 |  | 2020 |  | 2021 |  | 2020
Supplemental Noninterest Income Information |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer services | $ | 479 |  |  | $ | 470 |  |  | $ | 435 |  |  | $ | 368 |  |  | $ | 369 |  |  | $ | 1,752 |  |  | $ | 1,427 |
Residential mortgage | $ | 101 |  |  | $ | 147 |  |  | $ | 103 |  |  | $ | 105 |  |  | $ | 99 |  |  | $ | 456 |  |  | $ | 604 |
Service charges on deposits | $ | 136 |  |  | $ | 158 |  |  | $ | 129 |  |  | $ | 119 |  |  | $ | 133 |  |  | $ | 542 |  |  | $ | 497 |
Residential Mortgage Information |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage servicing statistics (in billions, except as noted) (a) |  |  |  |  |  |  |  |  |  |  |  |  |
Serviced portfolio balance (b) | $ | 133 |  |  | $ | 139 |  |  | $ | 145 |  |  | $ | 117 |  |  | $ | 121 |  |  |  |  |
Serviced portfolio acquisitions | $ | 2 |  |  | $ | 2 |  |  | $ | 33 |  |  | $ | 7 |  |  | $ | 12 |  |  | $ | 44 |  |  | $ | 33 |
MSR asset value (b) | $ | 1.1 |  |  | $ | 1.1 |  |  | $ | 1.1 |  |  | $ | 1.0 |  |  | $ | 0.7 |  |  |  |  |
MSR capitalization value (in basis points) (b) | 81 |  |  | 81 |  |  | 77 |  |  | 83 |  |  | 56 |  |  |  |  |
Servicing income: (in millions) |  |  |  |  |  |  |  |  |  |  |  |  |
Servicing fees, net (c) | $ | 14 |  |  | $ | 18 |  |  | $ | (3) |  |  | $ | 5 |  |  | $ | 13 |  |  | $ | 34 |  |  | $ | 118 |
Mortgage servicing rights valuation, net of economic hedge | $ | 2 |  |  | $ | 24 |  |  | $ | 24 |  |  | $ | 14 |  |  | $ | (1) |  |  | $ | 64 |  |  | $ | 137 |
Residential mortgage loan statistics |  |  |  |  |  |  |  |  |  |  |  |  |
Loan origination volume (in billions) | $ | 6.6 |  |  | $ | 7.4 |  |  | $ | 6.5 |  |  | $ | 4.3 |  |  | $ | 3.7 |  |  | $ | 24.8 |  |  | $ | 15.1 |
Loan sale margin percentage | 2.55 | % |  | 3.01 | % |  | 2.67 | % |  | 3.28 | % |  | 3.75 | % |  | 2.84 | % |  | 3.57 | %
Percentage of originations represented by: |  |  |  |  |  |  |  |  |  |  |  |  |
Purchase volume (d) | 38 | % |  | 47 | % |  | 48 | % |  | 34 | % |  | 45 | % |  | 43 | % |  | 40 | %
Refinance volume | 62 | % |  | 53 | % |  | 52 | % |  | 66 | % |  | 55 | % |  | 57 | % |  | 60 | %
Other Information (b) |  |  |  |  |  |  |  |  |  |  |  |  |
Customer-related statistics (average) (e) |  |  |  |  |  |  |  |  |  |  |  |  |
Non-teller deposit transactions (f) | 64 | % |  | 66 | % |  | 65 | % |  | 66 | % |  | 66 | % |  | 65 | % |  | 64 | %
Digital consumer customers (g) | 79 | % |  | 80 | % |  | 80 | % |  | 79 | % |  | 77 | % |  | 79 | % |  | 74 | %
Credit-related statistics |  |  |  |  |  |  |  |  |  |  |  |  |
Nonperforming assets | $ | 1,220 |  |  | $ | 1,220 |  |  | $ | 1,245 |  |  | $ | 1,229 |  |  | $ | 1,211 |  |  |  |  |
Net charge-offs - loans and leases | $ | 124 |  |  | $ | 82 |  |  | $ | 79 |  |  | $ | 108 |  |  | $ | 136 |  |  | $ | 393 |  |  | $ | 569 |
Other statistics |  |  |  |  |  |  |  |  |  |  |  |  |
ATMs | 9,523 |  |  | 9,572 |  |  | 9,636 |  |  | 8,874 |  |  | 8,900 |  |  |  |  |
Branches (h) | 2,629 |  |  | 2,712 |  |  | 2,724 |  |  | 2,137 |  |  | 2,162 |  |  |  |  |
Brokerage account client assets (in billions) (i) | $ | 78 |  |  | $ | 76 |  |  | $ | 83 |  |  | $ | 61 |  |  | $ | 59 |  |  |  |  |

(a)Represents mortgage loan servicing balances for third parties and the related income.
(b)Presented as of period end, except for average customer-related statistics and net charge-offs, which are both shown for the three months and year ended, respectively.
(c)Servicing fees net of impact of decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan payments, prepayments, and loans that were paid down or paid off during the period.
(d)Mortgages with borrowers as part of residential real estate purchase transactions.
(e)Amounts prior to the three months ended December 31, 2021 represent PNC legacy only statistics. Fourth quarter statistics included BBVA activity following the conversion on October 12, 2021.
(f)Percentage of total consumer and business banking deposit transactions processed at an ATM or through our mobile banking application.
(g)Represents consumer checking relationships that process the majority of their transactions through non-teller channels.
(h)Excludes stand-alone mortgage offices and satellite offices (e.g., drive-ups, electronic branches and retirement centers) that provide limited products and/or services.
(i)Includes cash and money market balances.

THE PNC FINANCIAL SERVICES GROUP, INC. | Page 16

Table 17: Corporate & Institutional Banking (Unaudited) (a)

| Three months ended |  | Year ended
| December 31 |  | September 30 |  | June 30 |  | March 31 |  | December 31 |  | December 31 |  | December 31
Dollars in millions | 2021 |  | 2021 |  | 2021 |  | 2021 |  | 2020 |  | 2021 |  | 2020
Income Statement |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income | $ | 1,228 |  |  | $ | 1,250 |  |  | $ | 1,092 |  |  | $ | 1,001 |  |  | $ | 994 |  |  | $ | 4,571 |  |  | $ | 4,049 |
Noninterest income | 1,053 |  |  | 1,056 |  |  | 867 |  |  | 807 |  |  | 919 |  |  | 3,783 |  |  | 3,062 |
Total revenue | 2,281 |  |  | 2,306 |  |  | 1,959 |  |  | 1,808 |  |  | 1,913 |  |  | 8,354 |  |  | 7,111 |
Provision for (recapture of) credit losses | (369) |  |  | (99) |  |  | 104 |  |  | (282) |  |  | (166) |  |  | (646) |  |  | 2,088 |
Noninterest expense | 975 |  |  | 980 |  |  | 813 |  |  | 711 |  |  | 801 |  |  | 3,479 |  |  | 2,856 |
Pretax earnings | 1,675 |  |  | 1,425 |  |  | 1,042 |  |  | 1,379 |  |  | 1,278 |  |  | 5,521 |  |  | 2,167 |
Income taxes | 337 |  |  | 299 |  |  | 229 |  |  | 318 |  |  | 282 |  |  | 1,183 |  |  | 483 |
Noncontrolling interests | 4 |  |  | 3 |  |  | 4 |  |  | 3 |  |  | 4 |  |  | 14 |  |  | 10 |
Earnings | $ | 1,334 |  |  | $ | 1,123 |  |  | $ | 809 |  |  | $ | 1,058 |  |  | $ | 992 |  |  | $ | 4,324 |  |  | $ | 1,674 |
Average Balance Sheet |  |  |  |  |  |  |  |  |  |  |  |  |
Loans held for sale | $ | 539 |  |  | $ | 541 |  |  | $ | 564 |  |  | $ | 691 |  |  | $ | 1,039 |  |  | $ | 583 |  |  | $ | 762 |
Loans |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial | $ | 137,079 |  |  | $ | 134,128 |  |  | $ | 121,232 |  |  | $ | 114,944 |  |  | $ | 120,297 |  |  | $ | 126,928 |  |  | $ | 125,426 |
Commercial real estate | 33,559 |  |  | 35,368 |  |  | 30,118 |  |  | 27,182 |  |  | 27,509 |  |  | 31,584 |  |  | 27,180 |
Equipment lease financing | 6,184 |  |  | 6,300 |  |  | 6,332 |  |  | 6,332 |  |  | 6,381 |  |  | 6,286 |  |  | 6,813 |
Total commercial | 176,822 |  |  | 175,796 |  |  | 157,682 |  |  | 148,458 |  |  | 154,187 |  |  | 164,798 |  |  | 159,419 |
Consumer | 12 |  |  | 20 |  |  | 13 |  |  | 9 |  |  | 10 |  |  | 13 |  |  | 10 |
Total loans | $ | 176,834 |  |  | $ | 175,816 |  |  | $ | 157,695 |  |  | $ | 148,467 |  |  | $ | 154,197 |  |  | $ | 164,811 |  |  | $ | 159,429 |
Total assets | $ | 198,910 |  |  | $ | 202,268 |  |  | $ | 181,770 |  |  | $ | 170,531 |  |  | $ | 177,792 |  |  | $ | 188,479 |  |  | $ | 183,189 |
Deposits |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing | $ | 88,023 |  |  | $ | 85,869 |  |  | $ | 75,570 |  |  | $ | 66,666 |  |  | $ | 64,334 |  |  | $ | 79,109 |  |  | $ | 53,681 |
Interest-bearing | 72,397 |  |  | 77,247 |  |  | 69,443 |  |  | 69,668 |  |  | 74,426 |  |  | 72,210 |  |  | 70,622 |
Total deposits | $ | 160,420 |  |  | $ | 163,116 |  |  | $ | 145,013 |  |  | $ | 136,334 |  |  | $ | 138,760 |  |  | $ | 151,319 |  |  | $ | 124,303 |
Performance Ratios |  |  |  |  |  |  |  |  |  |  |  |  |
Return on average assets | 2.66 | % |  | 2.20 | % |  | 1.79 | % |  | 2.52 | % |  | 2.21 | % |  | 2.29 | % |  | 0.91 | %
Noninterest income to total revenue | 46 | % |  | 46 | % |  | 44 | % |  | 45 | % |  | 48 | % |  | 45 | % |  | 43 | %
Efficiency | 43 | % |  | 42 | % |  | 42 | % |  | 39 | % |  | 42 | % |  | 42 | % |  | 40 | %
Other Information |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated revenue from: |  |  |  |  |  |  |  |  |  |  |  |  |
Treasury Management (b) | $ | 560 |  |  | $ | 592 |  |  | $ | 523 |  |  | $ | 494 |  |  | $ | 472 |  |  | $ | 2,169 |  |  | $ | 1,884 |
Capital Markets (b) | $ | 571 |  |  | $ | 577 |  |  | $ | 432 |  |  | $ | 403 |  |  | $ | 530 |  |  | $ | 1,983 |  |  | $ | 1,607 |
Commercial mortgage banking activities: |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial mortgage loans held for sale (c) | $ | 42 |  |  | $ | 44 |  |  | $ | 29 |  |  | $ | 30 |  |  | $ | 45 |  |  | $ | 145 |  |  | $ | 162 |
Commercial mortgage loan servicing income (d) | 90 |  |  | 88 |  |  | 66 |  |  | 90 |  |  | 82 |  |  | 334 |  |  | 294 |
Commercial mortgage servicing rights valuation, net of economic hedge (e) | 16 |  |  | 14 |  |  | 33 |  |  | 17 |  |  | 14 |  |  | 80 |  |  | 72 |
Total | $ | 148 |  |  | $ | 146 |  |  | $ | 128 |  |  | $ | 137 |  |  | $ | 141 |  |  | $ | 559 |  |  | $ | 528 |
MSR asset value (f) | $ | 740 |  |  | $ | 703 |  |  | $ | 682 |  |  | $ | 702 |  |  | $ | 569 |  |  |  |  |
Average loans by C&IB business |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate Banking | $ | 87,284 |  |  | $ | 85,208 |  |  | $ | 77,645 |  |  | $ | 74,459 |  |  | $ | 76,664 |  |  | $ | 81,069 |  |  | $ | 81,977 |
Real Estate | 44,787 |  |  | 47,335 |  |  | 41,188 |  |  | 38,395 |  |  | 41,427 |  |  | 42,936 |  |  | 40,381 |
Business Credit | 26,065 |  |  | 25,540 |  |  | 22,965 |  |  | 21,552 |  |  | 21,337 |  |  | 24,047 |  |  | 22,589 |
Commercial Banking | 10,924 |  |  | 13,458 |  |  | 12,513 |  |  | 10,807 |  |  | 11,375 |  |  | 12,054 |  |  | 10,415 |
Other | 7,774 |  |  | 4,275 |  |  | 3,384 |  |  | 3,254 |  |  | 3,394 |  |  | 4,705 |  |  | 4,067 |
Total average loans | $ | 176,834 |  |  | $ | 175,816 |  |  | $ | 157,695 |  |  | $ | 148,467 |  |  | $ | 154,197 |  |  | $ | 164,811 |  |  | $ | 159,429 |
Credit-related statistics |  |  |  |  |  |  |  |  |  |  |  |  |
Nonperforming assets (f) | $ | 1,007 |  |  | $ | 1,061 |  |  | $ | 1,274 |  |  | $ | 658 |  |  | $ | 827 |  |  |  |  |
Net charge-offs - loans and leases | $ | (1) |  |  | $ | 13 |  |  | $ | 233 |  |  | $ | 44 |  |  | $ | 99 |  |  | $ | 289 |  |  | $ | 280 |

(a)See note (a) on page 13.
(b)Amounts are 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 17

Table 18: Asset Management Group (Unaudited) (a)

| Three months ended |  |  | Year ended
| December 31 |  | September 30 |  | June 30 |  | March 31 |  | December 31 |  |  | December 31 |  | December 31
Dollars in millions, except as noted | 2021 |  | 2021 |  | 2021 |  | 2021 |  | 2020 |  |  | 2021 |  | 2020
Income Statement |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income | $ | 130 |  |  | $ | 141 |  |  | $ | 112 |  |  | $ | 93 |  |  | $ | 91 |  |  |  | $ | 476 |  |  | $ | 357 |
Noninterest income | 258 |  |  | 256 |  |  | 244 |  |  | 229 |  |  | 225 |  |  |  | 987 |  |  | 854 |
Total revenue | 388 |  |  | 397 |  |  | 356 |  |  | 322 |  |  | 316 |  |  |  | 1,463 |  |  | 1,211 |
Provision for (recapture of) credit losses | (15) |  |  | (6) |  |  | 23 |  |  | (9) |  |  | (2) |  |  |  | (7) |  |  | 21 |
Noninterest expense | 265 |  |  | 255 |  |  | 219 |  |  | 202 |  |  | 211 |  |  |  | 941 |  |  | 858 |
Pretax earnings | 138 |  |  | 148 |  |  | 114 |  |  | 129 |  |  | 107 |  |  |  | 529 |  |  | 332 |
Income taxes | 32 |  |  | 34 |  |  | 27 |  |  | 30 |  |  | 25 |  |  |  | 123 |  |  | 77 |
Earnings | $ | 106 |  |  | $ | 114 |  |  | $ | 87 |  |  | $ | 99 |  |  | $ | 82 |  |  |  | $ | 406 |  |  | $ | 255 |
Average Balance Sheet |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate | $ | 6,295 |  |  | $ | 5,727 |  |  | $ | 4,439 |  |  | $ | 3,635 |  |  | $ | 3,326 |  |  |  | $ | 5,033 |  |  | $ | 2,832 |
Other consumer | 4,535 |  |  | 4,544 |  |  | 4,190 |  |  | 4,008 |  |  | 4,077 |  |  |  | 4,321 |  |  | 4,042 |
Total consumer | 10,830 |  |  | 10,271 |  |  | 8,629 |  |  | 7,643 |  |  | 7,403 |  |  |  | 9,354 |  |  | 6,874 |
Commercial | 2,093 |  |  | 2,693 |  |  | 1,415 |  |  | 756 |  |  | 774 |  |  |  | 1,746 |  |  | 831 |
Total loans | $ | 12,923 |  |  | $ | 12,964 |  |  | $ | 10,044 |  |  | $ | 8,399 |  |  | $ | 8,177 |  |  |  | $ | 11,100 |  |  | $ | 7,705 |
Total assets | $ | 13,317 |  |  | $ | 13,805 |  |  | $ | 10,640 |  |  | $ | 8,873 |  |  | $ | 8,615 |  |  |  | $ | 11,677 |  |  | $ | 8,186 |
Deposits |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing | $ | 3,025 |  |  | $ | 4,332 |  |  | $ | 2,537 |  |  | $ | 1,754 |  |  | $ | 1,689 |  |  |  | $ | 2,919 |  |  | $ | 1,568 |
Interest-bearing | 26,318 |  |  | 24,984 |  |  | 20,894 |  |  | 18,825 |  |  | 17,880 |  |  |  | 22,782 |  |  | 17,347 |
Total deposits | $ | 29,343 |  |  | $ | 29,316 |  |  | $ | 23,431 |  |  | $ | 20,579 |  |  | $ | 19,569 |  |  |  | $ | 25,701 |  |  | $ | 18,915 |
Performance Ratios |  |  |  |  |  |  |  |  |  |  |  |  |  |
Return on average assets | 3.16 | % |  | 3.28 | % |  | 3.28 | % |  | 4.52 | % |  | 3.78 | % |  |  | 3.48 | % |  | 3.12 | %
Noninterest income to total revenue | 66 | % |  | 64 | % |  | 69 | % |  | 71 | % |  | 71 | % |  |  | 67 | % |  | 71 | %
Efficiency | 68 | % |  | 64 | % |  | 62 | % |  | 63 | % |  | 67 | % |  |  | 64 | % |  | 71 | %
Other Information |  |  |  |  |  |  |  |  |  |  |  |  |  |
Nonperforming assets (b) | $ | 62 |  |  | $ | 80 |  |  | $ | 85 |  |  | $ | 68 |  |  | $ | 66 |  |  |  |  |  |
Net charge-offs (recoveries) - loans and leases | $ | 1 |  |  | $ | (1) |  |  | $ | 2 |  |  |  |  | $ | 1 |  |  |  | $ | 2 |  |  | $ | 1 |
Brokerage account client assets (in billions) (b) | $ | 5 |  |  | $ | 5 |  |  | $ | 5 |  |  |  |  |  |  |  |  |  |
Client Assets Under Administration (in billions) (b) (c) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Discretionary client assets under management | $ | 192 |  |  | $ | 183 |  |  | $ | 183 |  |  | $ | 173 |  |  | $ | 170 |  |  |  |  |  |
Nondiscretionary client assets under administration | 175 |  |  | 170 |  |  | 172 |  |  | 161 |  |  | 154 |  |  |  |  |  |
Total | $ | 367 |  |  | $ | 353 |  |  | $ | 355 |  |  | $ | 334 |  |  | $ | 324 |  |  |  |  |  |
Discretionary client assets under management |  |  |  |  |  |  |  |  |  |  |  |  |  |
Personal | $ | 123 |  |  | $ | 117 |  |  | $ | 119 |  |  | $ | 110 |  |  | $ | 108 |  |  |  |  |  |
Institutional | 69 |  |  | 66 |  |  | 64 |  |  | 63 |  |  | 62 |  |  |  |  |  |
Total | $ | 192 |  |  | $ | 183 |  |  | $ | 183 |  |  | $ | 173 |  |  | $ | 170 |  |  |  |  |  |

(a)See note (a) on page 13.
(b)As of period end.
(c)Excludes brokerage account client assets.

THE PNC FINANCIAL SERVICES GROUP, INC. | Page 18

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.

THE PNC FINANCIAL SERVICES GROUP, INC. | Page 19

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

THE PNC FINANCIAL SERVICES GROUP, INC. | Page 20

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.