PNC FINANCIAL SERVICES GROUP INC
For the period ended Mar 31, 2025. Filed May 2, 2025.
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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.
Mar 31, 2025 · Filed May 2, 2025
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Basic and Diluted Earnings Per Common Share
Table 66: Basic and Diluted Earnings Per Common Share
| In millions, except per share data | 2025 | 2024 |
|---|---|---|
| Basic | ||
| Net income | $1,499 | $1,344 |
| Less: | ||
| Net income attributable to noncontrolling interests | 18 | 14 |
| Preferred stock dividends | 71 | 81 |
| Preferred stock discount accretion and redemptions | 2 | 2 |
| Net income attributable to common shareholders | 1,408 | 1,247 |
| Less: Dividends and undistributed earnings allocated to nonvested restricted shares | 9 | 7 |
| Net income attributable to basic common shareholders | $1,399 | $1,240 |
| Basic weighted-average common shares outstanding | 398 | 400 |
| Basic earnings per common share (a) | $3.52 | $3.10 |
| Diluted | ||
| Net income attributable to diluted common shareholders | $1,399 | $1,240 |
| Basic weighted-average common shares outstanding | 398 | 400 |
| Diluted weighted-average common shares outstanding | 398 | 400 |
| Diluted earnings per common share (a) | $3.51 | $3.10 |
(a)Basic and diluted earnings per share under the two-class method are determined on net income reported on the income statement less earnings allocated to nonvested restricted shares and restricted share units with nonforfeitable dividends and dividend rights (participating securities).
NOTE 11 FAIR VALUE
Fair Value Measurement
We measure certain financial assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or the price that would be paid to transfer a liability on the measurement date and is determined using an exit price in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The fair value hierarchy established by GAAP requires us to maximize the use of observable inputs when measuring fair value. For more information regarding the fair value hierarchy, see Note 14 Fair Value in our 2024 Form 10-K.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Interest-bearing Deposits
In the first quarter of 2025, PNC elected to begin accounting for certain brokered time deposits, which are economically hedged with derivatives, under the fair value option. The election of the fair value option aligns the accounting for the brokered time deposits with the related hedges. Fair value is estimated by discounting contractual cash flows using current market rates for instruments with similar maturities. The portion of the change in fair value attributable to instrument-specific credit risk is recognized in OCI, and is estimated as the difference between the overall change in fair value and the change in fair value resulting from a change in the specified benchmark interest rate. The portion of the change in fair value resulting from a change in the specified benchmark interest rate is recognized in the Consolidated Income Statement within Deposits interest expense. Brokered time deposits are classified as Level 2, as the estimates of current market rates used to determine fair value are based on dealer indications and benchmark interest rates that are considered observable.
70 The PNC Financial Services Group, Inc. –Form 10-Q
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