PNC FINANCIAL SERVICES GROUP, INC.

Funding Sources

Table 11: Details of Funding Sources

Deposits are considered an attractive source of funding due to their stability and relatively low cost to fund. Compared to December 31, 2025, our funding source composition included higher borrowed funds outstanding and higher deposit balances. Funding costs decreased compared to the fourth quarter of 2025 as growth in funding sources was more than offset by the impact of lower funding rates.

Total deposits increased compared to December 31, 2025, primarily driven by higher noninterest-bearing deposits, and included the addition of FirstBank deposits. Interest-bearing deposits were stable and reflected higher consumer balances, offset by a seasonal decline in commercial balances and lower brokered time deposits. Our total brokered deposit balance was $2.1 billion at June 30, 2026 compared to $5.1 billion at December 31, 2025, and was significantly below both our internal and regulatory guidelines and limits.

Borrowed funds increased primarily due to higher FHLB advances.

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 first quarter 2026 Form 10-Q, as well as the Supervision and Regulation section and Note 19 Regulatory Matters of our 2025 Form 10-K for additional information regarding our liquidity and capital acti vities. See Note 8 Borrowed Funds in this Report and Note 9 Borrowed Funds in our 2025 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 $64.0 billion at June 30, 2026 increased $3.4 billion, or 6%, compared to December 31, 2025, primarily due to the benefit of net income of $3.8 billion and stock issuances related to the FirstBank acquisition of $3.0 billion, partially offset by dividends paid of $1.5 billion, common share repurchases of $1.3 billion and a decline in AOCI of $0.7 billion.

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