XML 63 R27.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME T AXES The components of income tax expense are as follows: Table 109: Components of Income Tax Expense
Year ended December 31 In millions | 2024 |  | 2023 |  | 2022 |
Current |  |  |  |  |  |
Federal | $ | 1,098 |  |  | $ | 1,021 |  |  | $ | 782 |  |
State | 221 |  |  | 320 |  |  | 227 |  |
Total current | 1,319 |  |  | 1,341 |  |  | 1,009 |  |
Deferred |  |  |  |  |  |
Federal | (1) |  |  | (149) |  |  | 307 |  |
State | (29) |  |  | (103) |  |  | 44 |  |
Total deferred | (30) |  |  | (252) |  |  | 351 |  |
Total | $ | 1,289 |  |  | $ | 1,089 |  |  | $ | 1,360 |  |
Significant components of deferred tax assets and liabilities are as follows: Table 110: Deferred Tax Assets and Liabilities
December 31 – in millions | 2024 |  | 2023 |
Deferred tax assets |  |  |  |
Net unrealized losses on securities and financial instruments | $ | 2,098 |  |  | $ | 2,417 |  |
Allowance for loan and lease losses | 1,105 |  |  | 1,147 |  |
Lease obligations | 475 |  |  | 508 |  |
Compensation and benefits | 312 |  |  | 261 |  |
Allowance for unfunded lending related commitments | 177 |  |  | 161 |  |
Accrued expenses | 188 |  |  | 209 |  |
Other | 340 |  |  | 384 |  |
Total gross deferred tax assets | 4,695 |  |  | 5,087 |  |
Valuation allowance | (23) |  |  | (26) |  |
Total deferred tax assets | 4,672 |  |  | 5,061 |  |
Deferred tax liabilities |  |  |  |
Leasing | 919 |  |  | 938 |  |
Fixed assets | 397 |  |  | 477 |  |
Right of Use Assets | 412 |  |  | 445 |  |
Mortgage servicing rights | 434 |  |  | 359 |  |
Goodwill and intangibles | 249 |  |  | 252 |  |
Other | 472 |  |  | 461 |  |
Total deferred tax liabilities | 2,883 |  |  | 2,932 |  |
Net deferred tax asset | $ | 1,789 |  |  | $ | 2,129 |  |
A reconciliation between the statutory and effective tax rates follows: Table 111: Reconciliation of Statutory and Effective Tax Rates
Year ended December 31 | 2024 |  | 2023 |  | 2022
Statutory tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Increases (decreases) resulting from: |  |  |  |  |
State taxes net of federal benefit | 3.0 |  |  | 2.9 |  |  | 2.7 |
Tax-exempt interest | (1.4) |  |  | (1.7) |  |  | (1.2) |
Life insurance | (0.9) |  |  | (0.9) |  |  | (0.8) |
Tax credits | (5.0) |  |  | (5.2) |  |  | (3.2) |
Other | 1.1 |  |  | 0.1 |  |  | (0.3) |
Effective tax rate | 17.8 | % |  | 16.2 | % |  | 18.2 | %
The net operating loss carryforwards at December 31, 2024 and 2023 follow: Table 112: Net Operating Loss Carryforwards
Dollars in millions | December 31, 2024 |  | December 31, 2023 |  | Expiration |
Net Operating Loss Carryforwards (a): |  |  |  |  |  |
State | $ | 585 |  |  | $ | 624 |  |  | 2025-2036 |
(a)There were no federal net operating loss carryforwards at both December 31, 2024 and 2023. The majority of tax credit carryforwards expire in 2027-2044 and were insignificant at both December 31, 2024 and 2023. We anticipate that we will be able to fully utilize our tax credit carryforwards. Some state net operating loss carryforwards are from acquired entities and utilization is subject to various statutory limitations. Retained earnings included $0.1 billion at both December 31, 2024 and 2023 in allocations for bad debt deductions of former thrift subsidiaries for which no income tax has been provided. Under current law, if certain subsidiaries use these bad debt reserves for purposes other than to absorb bad debt losses, they will be subject to Federal income tax at the current corporate tax rate. A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows: Table 113: Change in Unrecognized Tax Benefits
In millions | 2024 |  | 2023 |  | 2022 |
Balance of gross unrecognized tax benefits at January 1 | $ | 368 |  |  | $ | 318 |  |  | $ | 275 |  |
Increases: |  |  |  |  |  |
Positions taken during a current period | 23 |  |  | 20 |  |  |  |  |
Positions taken during a prior period | 35 |  |  | 35 |  |  | 46 |  |
Decreases: |  |  |  |  |  |
Settlements with taxing authorities | (1) |  |  | (4) |  |  | (3) |  |
Reductions resulting from lapse of statute of limitations | (60) |  |  | (1) |  |  |  |
Balance of gross unrecognized tax benefits at December 31 | $ | 365 |  |  | $ | 368 |  |  | $ | 318 |  |
Favorable impact if recognized | $ | 314 |  |  | $ | 306 |  |  | $ | 258 |  |
We do not expect that the balance of unrecognized tax benefits will significantly increase or decrease in the next twelve months. We are subject to U.S. federal income tax as well as income tax in most states and some foreign jurisdictions. Table 114 summarizes the status of significant IRS examinations. Table 114: IRS Tax Examination Status
| Year(s) |  | Status at December 31, 2024 |
| The PNC Financial Services Group, Inc. | BBVA USA Bancshares, Inc. |  |  |
Federal | 2020 2021 | 2018 2020 |  | Under Exam |
In addition, we are under continuous examinations by various state taxing authorities. With few exceptions, we are no longer subject to state and local and foreign income tax examinations by taxing authorities for periods before 2015. For all open audits, any potential adjustments have been considered in establishing our unrecognized tax benefits as of December 31, 2024. Our policy is to classify interest and penalties associated with income taxes as income tax expense. For 2024 and 2023, the amount of gross interest and penalties was insignificant. The related amounts of accrued interest and penalties were $0.1 billion at December 31, 2024 and insignificant at December 31, 2023.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration