PNC FINANCIAL SERVICES GROUP, INC.

Our Consolidated Income Statement is presented in Item 1 of this Report.

Net income of $1.8 billion, or $4.13 per diluted common share, for the first quarter of 2026 decreased $261 million, or 13%, compared to $2.0 billion, or $4.88 per diluted common share, for the fourth quarter of 2025, due to increased noninterest expense, lower noninterest income and higher provision for credit losses, partially offset by higher net interest income. Net income increased $273 million, or 18%, compared to $1.5 billion, or $3.51 per diluted common share, for the same period in 2025, primarily due to higher net interest and noninterest income, partially offset by increased noninterest expense.

Table 3: Summarized Average Balances and Net Interest Income (a)

(a)Interest income is calculated as taxable-equivalent interest income. To provide more meaningful comparisons of interest income and yields for all interest-earning assets, as well as net interest margins, 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 interest income earned on taxable investments. This adjustment is not permitted under GAAP on the Consolidated Income Statement. For more information, see Table 36 Reconciliation of Taxable-Equivalent Net Interest Income (non-GAAP).

The PNC Financial Services Group, Inc. –Form 10-Q 5

(b)Interest income from Interest-earning deposits with banks primarily includes interest earned on our balances held with the FRB and is reported as Other interest income on our Consolidated Income Statement.

Changes in net interest income and margin result from the interaction of the volume and composition of interest-earning assets and related yields, interest-bearing liabilities and related rates paid and noninterest-bearing sources of funding. See Table 35 Average Consolidated Balance Sheet and Net Interest Analysis for additional information.

Net interest income increased $230 million, or 6%, for the first quarter of 2026 compared to the fourth quarter of 2025, reflecting the benefit of FirstBank, lower funding costs and commercial loan growth. Net interest income increased $485 million, or 14%, for the first three months of 2026 compared to the same period in 2025 and reflected the benefit of FirstBank, loan growth and lower funding costs. Net interest margin increased 11 basis points compared to the fourth quarter of 2025, reflecting an 18 basis point decline in the rate paid on interest-bearing deposits. Compared to the first three months of 2025, net interest margin increased 17 basis points and included the continued benefit of fixed rate asset repricing.

Average investment securities increased $2.3 billion, or 2%, compared to both the fourth and first quarters of 2025. In both comparisons, the increase primarily reflected higher residential mortgage-backed securities, partially offset by a decline in U.S. Treasury securities. Average investment securities represented 27% of average interest-earning assets for both the first quarter of 2026 and the fourth quarter of 2025, compared to 28% for the first three months of 2025.

Average loans increased $23.0 billion, or 7%, compared to the fourth quarter of 2025, and $34.3 billion, or 11%, compared to the first three months of 2025. In both comparisons, the increase is primarily due to growth in commercial and industrial loans, driven by strong new production and increased utilization, as well as the addition of FirstBank loans. Average loans represented 65% of average interest-earning assets for the first quarter of 2026, compared to 63% for both the fourth and first quarters of 2025.

Average interest-earning deposits with banks increased $0.6 billion, or 2%, compared to the fourth quarter of 2025 and decreased $2.0 billion, or 6%, compared to the first quarter of 2025. The decrease compared to the first three months of 2025 reflected higher loans and securities balances and lower borrowed funds, partially offset by increased deposits.

Average interest-bearing deposits increased $14.6 billion, or 4%, compared to the fourth quarter of 2025, and $31.0 billion, or 9%, compared to the first quarter of 2025. Both comparisons reflected the addition of FirstBank deposits, partially offset by lower brokered time deposits. In total, average interest-bearing deposits represented 85% of average interest-bearing liabilities for both the first quarter of 2026 and the fourth quarter of 2025, compared to 84% for the first three months of 2025.

Average borrowed funds increased $2.6 billion, or 4%, compared to the fourth quarter of 2025, and reflected an increase in FHLB advances. Average borrowed funds decreased $1.6 billion, or 3%, compared to the first three months of 2025, primarily due to lower FHLB advances, partially offset by higher senior debt outstanding.

Further details regarding average loans and deposits are included in the Business Segments Review section of this Financial Review.