PNC FINANCIAL SERVICES GROUP, INC.
For the period ended Sep 30, 2026. Filed Nov 3, 2026.
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Sep 30, 2026 · Filed Nov 3, 2026
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Rollforward of Allowance for Credit Losses
We maintain the ACL related to loans at levels that we believe to be appropriate to absorb expected credit losses in the portfolios as of the balance sheet date. See Note 1 Accounting Policies in our 2025 Form 10-K for a discussion of the methodologies used to determine this allowance. A rollforward of the ACL related to loans follows:
Table 58: Rollforward of Allowance for Credit Losses
| Three months ended September 30 · Nine months ended September 30 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 2025 | 2026 | 2025 | |||||||||
| In millions | Commercial | Consumer | Total | Commercial | Consumer | Total | Commercial | Consumer | Total | Commercial | Consumer | Total |
| Allowance for loan and lease losses | ||||||||||||
| Beginning balance | $3,254 | $1,398 | $4,652 | $3,230 | $1,293 | $4,523 | $3,089 | $1,321 | $4,410 | $3,148 | $1,338 | $4,486 |
| Acquisition PCD reserves | — | — | — | — | — | — | 53 | 40 | 93 | — | — | — |
| Acquisition PSL reserves | — | — | — | — | — | — | 184 | 45 | 229 | — | — | — |
| Beginning balance, adjusted | 3,254 | 1,398 | 4,652 | 3,230 | 1,293 | 4,523 | 3,326 | 1,406 | 4,732 | 3,148 | 1,338 | 4,486 |
| Charge-offs | (164) | (188) | (352) | (116) | (168) | (284) | (477) | (508) | (985) | (410) | (510) | (920) |
| Recoveries | 36 | 59 | 95 | 44 | 61 | 105 | 110 | 184 | 294 | 152 | 186 | 338 |
| Acquired loan charge-offs (a) | — | — | — | — | — | — | (10) | (35) | (45) | — | — | — |
| Net (charge-offs) | (128) | (129) | (257) | (72) | (107) | (179) | (377) | (359) | (736) | (258) | (324) | (582) |
| Provision for credit losses | 65 | 76 | 141 | 23 | 113 | 136 | 246 | 296 | 542 | 282 | 285 | 567 |
| Other | — | — | — | (3) | 1 | (2) | (4) | 2 | (2) | 6 | 1 | 7 |
| Ending balance | $3,191 | $1,345 | $4,536 | $3,178 | $1,300 | $4,478 | $3,191 | $1,345 | $4,536 | $3,178 | $1,300 | $4,478 |
| Allowance for unfunded lending related commitments (b) | ||||||||||||
| Beginning balance | $670 | $139 | $809 | $616 | $143 | $759 | $681 | $137 | $818 | $580 | $139 | $719 |
| Provision for (recapture of) credit losses | 24 | 16 | 40 | 18 | (2) | 16 | 13 | 21 | 34 | 52 | 2 | 54 |
| Other | — | 1 | 1 | (1) | 1 | — | — | (2) | (2) | 1 | 1 | 2 |
| Ending balance | $694 | $156 | $850 | $633 | $142 | $775 | $694 | $156 | $850 | $633 | $142 | $775 |
| Allowance for credit losses at September 30 (c) | $3,885 | $1,501 | $5,386 | $3,811 | $1,442 | $5,253 | $3,885 | $1,501 | $5,386 | $3,811 | $1,442 | $5,253 |
(a)Amounts for the nine months ended September 30, 2026 include $45 million attributable to FirstBank, which represents the charge-off of certain loans previously charged off by FirstBank, which were written up upon acquisition to unpaid principal balance as required by purchase accounting.
(b)See Note 9 Commitments for additional information about the underlying commitments related to this allowance.
(c)Represents the ALLL plus allowance for unfunded lending related commitments and excludes allowances for investment securities and other financial assets, which together totaled $103 million and $101 million at September 30, 2026 and 2025, respectively.
The ACL related to loans totaled $5.4 billion at September 30, 2026 and $5.2 billion at December 31, 2025. The increase was primarily driven by portfolio activity, including loan growth and the addition of FirstBank loans, as well as updates to macroeconomic factors.
NOTE 5 LOANSALE ANDS ERVICING ACTIVITIES ANDV ARIABLE INTERESTE NTITIES
Loan Sale and Servicing Activities
As more fully described in Note 4 Loan Sale and Servicing Activities and Variable Interest Entities in our 2025 Form 10-K, we have transferred residential and commercial mortgage loans in securitization or sales transactions in which we have continuing involvement. Our continuing involvement in the FNMA, FHLMC and GNMA securitizations, non-agency securitizations and loan sale transactions generally consists of servicing, repurchasing previously transferred loans or loss share arrangements under certain conditions, and, in limited circumstances, holding of mortgage-backed securities issued by the securitization SPEs.
We earn servicing and other ancillary fees for our role as servicer and, depending on the contractual terms of the servicing arrangement, we can be terminated as servicer with or without cause. At the consummation date of each type of loan transfer where we retain the servicing, we recognize a servicing right at fair value. See Note 6 Goodwill and Mortgage Servicing Rights and Note 12 Fair Value for further discussion of our servicing rights.
The PNC Financial Services Group, Inc. –Form 10-Q 69
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