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PNC FINANCIAL SERVICES GROUP INC

For the period ended Jun 30, 2024. Filed Aug 2, 2024.

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About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Jun 30, 2024 · Filed Aug 2, 2024

PNC$225.38-0.6%Stored close · as of Nov 6, 2026
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

or

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-09718

The PNC Financial Services Group, Inc.

(Exact name of registrant as specified in its charter)

Pennsylvania25-1435979
(State or other jurisdiction ofincorporation or organization)(I.R.S. EmployerIdentification No.)

The Tower at PNC Plaza,300 Fifth Avenue, Pittsburgh, Pennsylvania 15222-2401

(Address of principal executive offices, including zip code)

(888)762-2265

(Registrant’s telephone number including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common Stock, par value $5.00PNCNew York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer☒Accelerated filer☐
Non-accelerated filer☐Smaller reporting company☐
Emerging growth company☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No☒

As of July 15, 2024, there were 397,496,265 shares of the registrant’s common stock ($5 par value) outstanding.

Cross-Reference Index to Second Quarter 2024 Form 10-Q

Pages
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited).
Consolidated Income Statement41
Consolidated Statement of Comprehensive Income42
Consolidated Balance Sheet43
Consolidated Statement of Cash Flows44
Notes To Consolidated Financial Statements (Unaudited)
Note 1 Accounting Policies46
Note 2 Investment Securities47
Note 3 Loans and Related Allowance for Credit Losses50
Note 4 Loan Sale and Servicing Activities and Variable Interest Entities64
Note 5 Goodwill and Mortgage Servicing Rights66
Note 6 Leases68
Note 7 Borrowed Funds69
Note 8 Commitments70
Note 9 Total Equity and Other Comprehensive Income71
Note 10 Earnings Per Share74
Note 11 Fair Value75
Note 12 Financial Derivatives84
Note 13 Legal Proceedings90
Note 14 Segment Reporting91
Note 15 Fee-based Revenue from Contracts with Customers95
Note 16 Subsequent Events96
Statistical Information (Unaudited)
Average Consolidated Balance Sheet And Net Interest Analysis97
Reconciliation of Taxable-Equivalent Net Interest Income (non-GAAP)99
Reconciliation of Noninterest Income Guidance, Excluding Significant Items (non-GAAP)99
Reconciliation of Revenue Guidance, Excluding Significant Items (non-GAAP)99
Reconciliation of Core Noninterest Expense Guidance (non-GAAP)100
Glossary100
Defined Terms100
Acronyms100
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A).
Financial Review1
Executive Summary1
Consolidated Income Statement Review7
Consolidated Balance Sheet Review10
Business Segments Review13
Risk Management20
Recent Regulatory Developments36
Critical Accounting Estimates and Judgments36
Internal Controls and Disclosure Controls and Procedures38
Cautionary Statement Regarding Forward-Looking Information39
Item 3. Quantitative and Qualitative Disclosures about Market Risk.21-38, 49-50,83-89
Item 4. Controls and Procedures.38
PART II – OTHER INFORMATION
Item 1. Legal Proceedings.101
Item 1A. Risk Factors.101
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.101
Item 5. Other Information101
Item 6. Exhibits.102
Exhibit Index102
Corporate Information102
Signature104
MD&A TABLE REFERENCE
TableDescriptionPage
1Summary of Operations, Per Common Share Data and Performance Ratios2
2Balance Sheet Highlights and Other Selected Ratios3
3Summarized Average Balances and Net Interest Income7
4Noninterest Income8
5Noninterest Expense9
6Provision for Credit Losses9
7Summarized Balance Sheet Data10
8Loans11
9Investment Securities11
10Weighted-Average Expected Maturities of Mortgage and Asset-Backed Debt Securities12
11Details of Funding Sources12
12Retail Banking Table14
13Corporate & Institutional Banking Table16
14Asset Management Group Table19
15Details of Loans20
16Commercial and Industrial Loans by Industry21
17Commercial Real Estate Loans by Geography and Property Type22
18Residential Real Estate Loan Statistics23
19Home Equity Loan Statistics24
20Auto Loan Statistics24
21Nonperforming Assets by Type25
22Change in Nonperforming Assets25
23Accruing Loans Past Due26
24Allowance for Credit Losses by Loan Class27
25Loan Charge-Offs and Recoveries28
26Senior and Subordinated Debt29
27Primary Contingent Liquidity Sources29
28Parent Company Notes Issued30
29Credit Ratings and Outlook31
30Basel III Capital32
31Net Interest Income Sensitivity Analysis33
32Economic Value of Equity Sensitivity Analysis34
33Equity Investments Summary34
34Key Macroeconomic Variables in CECL Weighted-Average Scenarios37
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS TABLE REFERENCE
TableDescriptionPage
35Investment Securities Summary47
36Gross Unrealized Loss and Fair Value of Securities Available for Sale Without an Allowance for Credit Losses48
37Gains (Losses) on Sales of Securities Available for Sale48
38Contractual Maturity of Debt Securities49
39Fair Value of Securities Pledged and Accepted as Collateral49
40Analysis of Loan Portfolio51
41Nonperforming Assets52
42Commercial Credit Quality Indicators53
43Credit Quality Indicators for Residential Real Estate and Home Equity Loan Classes54
44Credit Quality Indicators for Automobile, Credit Card, Education and Other Consumer Loan Classes56
45Loan Modifications Granted to Borrowers Experiencing Financial Difficulty58
46Financial Effect of FDMs60
47Payment Performance of FDMs Modified in the Last 12 Months62
48Payment Performance of FDMs62
49Subsequently Defaulted FDMs63
50Rollforward of Allowance for Credit Losses64
51Loan Sale and Servicing Activities65
52Principal Balance, Delinquent Loans and Net Charge-offs Related to Serviced Loans For Others65
53Non-Consolidated VIEs66
54Mortgage Servicing Rights67
55Commercial Mortgage Servicing Rights – Key Valuation Assumptions68
56Residential Mortgage Servicing Rights – Key Valuation Assumptions68
57Lessor Income68
58Borrowed Funds69
59FHLB Borrowings, Senior Debt and Subordinated Debt69
60Commitments to Extend Credit and Other Commitments70
61Rollforward of Total Equity71
62Other Comprehensive Income (Loss)72
63Accumulated Other Comprehensive Income (Loss) Components72
64Dividends Per Share73
65Basic and Diluted Earnings Per Common Share74
66Fair Value Measurements – Recurring Basis Summary75
67Reconciliation of Level 3 Assets and Liabilities76
68Fair Value Measurements – Recurring Quantitative Information80
69Fair Value Measurements – Nonrecurring82
70Fair Value Option – Fair Value and Principal Balances82
71Fair Value Option – Changes in Fair Value83
72Additional Fair Value Information Related to Other Financial Instruments83
73Total Gross Derivatives85
74Gains (Losses) Recognized on Fair Value and Cash Flow Hedges in the Consolidated Income Statement87
75Hedged Items - Fair Value Hedges88
76Gains (Losses) on Derivatives Not Designated for Hedging88
77Derivative Assets and Liabilities Offsetting89
78Credit-Risk Contingent Features90
79Results of Businesses93
80Noninterest Income by Business Segment and Reconciliation to Consolidated Noninterest Income95
ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.