PNC FINANCIAL SERVICES GROUP, INC.
For the period ended Jun 30, 2025. Filed Aug 1, 2025.
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Jun 30, 2025 · Filed Aug 1, 2025
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Hedged Items - Fair Value Hedges
Detail regarding the impact of fair value hedge accounting on the carrying value of the hedged items is presented in the following table:
Table 77: Hedged Items - Fair Value Hedges
| June 30, 2025 | December 31, 2024 | |||
|---|---|---|---|---|
| In millions | Carrying Value of the Hedged Items | Cumulative Fair Value Hedge Adjustment included in the Carrying Value of Hedged Items (a) | Carrying Value of the Hedged Items | Cumulative Fair Value Hedge Adjustment included in the Carrying Value of Hedged Items (a) |
| Investment securities - available-for-sale (b) | $21,753 | $206 | $18,716 | $(305) |
| Borrowed funds | $37,897 | $(181) | $35,139 | $(1,057) |
(a)Includes an insignificant amount of fair value hedge adjustments related to discontinued available-for-sale securities and borrowed funds hedge relationships at both June 30, 2025 and December 31, 2024.
(b)Carrying value shown represents amortized cost.
Net Investment Hedges
We enter into foreign currency forward contracts to hedge non-U.S. dollar net investments in foreign subsidiaries against adverse changes in foreign exchange rates. We assess whether the hedging relationship is highly effective in achieving offsetting changes in the value of the hedge and hedged item by qualitatively verifying that the critical terms of the hedge and hedged item match at the inception of the hedging relationship and on an ongoing basis. Net investment hedge derivatives are classified as foreign exchange contracts. There were no components of derivative gains or losses excluded from the assessment of the hedge effectiveness for the periods presented. Net gains (losses) on net investment hedge derivatives recognized in OCI were $(83) million for the three months ended June 30, 2025 compared to $(2) million for the three months ended June 30, 2024 and $(124) million for the six months ended June 30, 2025 compared to $9 million for the same period in 2024.
Derivatives Not Designated as Hedging Instruments
Beginning in the first quarter of 2025, the other risk management portfolio includes derivatives that are used to economically hedge interest-rate risk associated with interest-bearing brokered time deposits accounted for at fair value on a recurring basis. Gains or losses on these derivatives are included in Deposits interest expense on our Consolidated Income Statement. For additional information on derivatives not designated as hedging instruments under GAAP, see Note 15 Financial Derivatives in our 2024 Form 10-K.
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