PNC FINANCIAL SERVICES GROUP, INC.

Funding Sources

Table 11: Details of Funding Sources

(a) Includes $7.3 billion of certain brokered time deposits accounted for under the fair value option at September 30, 2025.

Deposits are considered an attractive source of funding due to their stability and relatively low cost to fund. Compared to December 31, 2024, our funding source composition included higher deposit balances and borrowed funds outstanding. Funding costs decreased compared to the fourth quarter of 2024 as the growth in funding sources was more than offset by the impact of lower funding rates.

Total deposits increased compared to December 31, 2024 as higher interest-bearing deposits were partially offset by lower noninterest-bearing deposits. The increase in interest-bearing deposits was primarily due to higher commercial deposits. The decrease in noninterest-bearing deposits was primarily due to lower commercial balances. Our total brokered deposit balance of $8.1 billion at September 30, 2025 increased compared to $7.3 billion at December 31, 2024, and was significantly below both our internal and regulatory guidelines and limits.

Borrowed funds increased primarily due to higher senior debt outstanding, partially offset by lower FHLB advances.

The PNC Financial Services Group, Inc. –Form 10-Q 11

The level and composition of borrowed funds fluctuates over time based on many factors, including market conditions, capital considerations, and funding needs, which are primarily driven by changes in loan, deposit and investment securities balances. While our largest source of liquidity on a consolidated basis is the customer deposit base generated by our banking businesses, we also manage our borrowed funds to provide a reliable source of liquidity for our banking and other activities, considering our LCR and NSFR requirements and other internal and external guidelines and constraints. See the Liquidity and Capital Management portion of the Risk Management section and the Recent Regulatory Developments section in this Financial Review and the Supervision and Regulation section and Note 19 Regulatory Matters of our 2024 Form 10-K for additional information regarding our liquidity and capital acti vities. See Note 7 Borrowed Funds in this Report and Note 9 Borrowed Funds in our 2024 Form 10-K for additional information related to our borrowings. See the Average Consolidated Balance Sheet and Net Interest Analysis section of this Financial Review for additional information on volume and related funding cost changes.

Shareholders’ Equity

Total shareholders’ equity of $59.0 billion at September 30, 2025 increased $4.6 billion, or 8%, compared to December 31, 2024, primarily due to the benefit of net income of $5.0 billion and an improvement in AOCI of $2.5 billion, partially offset by dividends paid of $2.2 billion and $0.8 billion of common share repurchases.