Form 8-K PNC FINANCIAL SERVICES For: Apr 14

April 14, 2022 3:07 PM EDT

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Exhibit 99.1

pncbanklogoa18a.jpg



THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT
FIRST QUARTER 2022
(Unaudited)




THE PNC FINANCIAL SERVICES GROUP, INC.
FINANCIAL SUPPLEMENT
FIRST QUARTER 2022
(UNAUDITED)

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on April 14, 2022. We have reclassified certain prior period amounts to be consistent with the current period presentation, which we believe is more meaningful to readers of our consolidated financial statements. This information speaks only as of the particular date or dates included in the schedules. We do not undertake any obligation to, and disclaim any duty to, correct or update any of the information provided in this Financial Supplement. Our future financial performance is subject to risks and uncertainties as described in our United States Securities and Exchange Commission (SEC) filings.

BUSINESS
PNC is one of the largest diversified financial services companies in the United States (U.S.) and is headquartered in Pittsburgh, Pennsylvania. PNC has businesses engaged in retail banking, including residential mortgage, corporate and institutional banking and asset management, providing many of its products and services nationally. PNC's retail branch network is located coast-to-coast. PNC also has strategic international offices in four countries outside the U.S.

PRESENTATION OF NONINTEREST INCOME
Effective for the first quarter of 2022, PNC updated the presentation of its noninterest income categorization to be based on product and service type, and accordingly, has changed the basis of presentation of its noninterest income revenue streams to: (i) Asset management and brokerage, (ii) Capital markets related, (iii) Card and cash management, (iv) Lending and deposit services, (v) Residential and commercial mortgage and (vi) Other noninterest income. For a description of each updated noninterest income revenue stream, see PNC's Current Report on Form 8-K filed on March 31, 2022.

ACQUISITION OF BBVA USA BANCSHARES, INC.
On June 1, 2021, PNC acquired BBVA USA Bancshares Inc. (BBVA), a U.S. financial holding company conducting its business operations primarily through its U.S. banking subsidiary, BBVA USA. PNC paid $11.5 billion in cash as consideration for the acquisition.

On October 8, 2021, BBVA USA merged into PNC Bank. As of October 12, 2021, PNC converted approximately 2.6 million
customers, 9,000 employees and over 600 branches across seven states. Our 2021 results of operations reflect the benefit of BBVA's acquired business operations for the period since the acquisition closed on June 1, 2021. PNC's balance sheets at March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021 include BBVA's balances.






THE PNC FINANCIAL SERVICES GROUP, INC.
Cross Reference Index to First Quarter 2022 Financial Supplement (Unaudited)
Financial Supplement Table Reference
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THE PNC FINANCIAL SERVICES GROUP, INC.

Page 1

Table 1: Consolidated Income Statement (Unaudited)
Three months ended
March 31December 31September 30June 30March 31
In millions, except per share data20222021202120212021
Interest Income
Loans$2,293 $2,414 $2,437 $2,160 $1,996 
Investment securities544 484 460 469 421 
Other77 77 78 72 66 
Total interest income2,914 2,975 2,975 2,701 2,483 
Interest Expense
Deposits27 27 29 30 40 
Borrowed funds83 86 90 90 95 
Total interest expense110 113 119 120 135 
Net interest income2,804 2,862 2,856 2,581 2,348 
Noninterest Income
Asset management and brokerage377 385 375 350 328 
Capital markets related252 460 482 324 311 
Card and cash management620 646 663 597 492 
Lending and deposit services269 273 305 270 254 
Residential and commercial mortgage159 209 248 206 187 
Other (a)211 292 268 339 300 
Total noninterest income1,888 2,265 2,341 2,086 1,872 
Total revenue4,692 5,127 5,197 4,667 4,220 
Provision For (Recapture of) Credit Losses(208)(327)(203)302 (551)
Noninterest Expense
Personnel1,717 2,038 1,986 1,640 1,477 
Occupancy258 260 248 217 215 
Equipment331 437 355 326 293 
Marketing61 97 103 74 45 
Other805 959 895 793 544 
Total noninterest expense3,172 3,791 3,587 3,050 2,574 
Income before income taxes and noncontrolling interests1,728 1,663 1,813 1,315 2,197 
Income taxes299 357 323 212 371 
Net income1,429 1,306 1,490 1,103 1,826 
Less: Net income attributable to noncontrolling interests21 13 16 12 10 
Preferred stock dividends (b)45 71 57 48 57 
Preferred stock discount accretion and redemptions
Net income attributable to common shareholders$1,361 $1,220 $1,416 $1,042 $1,758 
Earnings Per Common Share
Basic$3.23 $2.87 $3.31 $2.43 $4.11 
Diluted$3.23 $2.86 $3.30 $2.43 $4.10 
Average Common Shares Outstanding
Basic420 424 426 427 426 
Diluted420 424 426 427 426 
Efficiency68 %74 %69 %65 %61 %
Noninterest income to total revenue40 %44 %45 %45 %44 %
Effective tax rate from continuing operations (c)17.3 %21.5 %17.8 %16.1 %16.9 %
(a)Includes net gains (losses) on sales of securities of $(4) million, $14 million, $15 million, $10 million and $25 million for the quarters ended March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021, respectively.
(b)Dividends are payable quarterly other than Series R and Series S preferred stock, which are payable semiannually.
(c)The effective income tax rates are generally lower than the statutory rate due to the relationship of pretax income to tax credits and earnings that are not subject to tax.
















THE PNC FINANCIAL SERVICES GROUP, INC.

Page 2
Table 2: Consolidated Balance Sheet (Unaudited)
March 31December 31September 30June 30March 31
In millions, except par value20222021202120212021
Assets
Cash and due from banks$7,572 $8,004 $8,843 $8,724 $7,455 
Interest-earning deposits with banks (a)48,776 74,250 75,478 72,447 86,161 
Loans held for sale (b)1,506 2,231 2,121 2,227 1,967 
Investment securities – available for sale 112,313 131,536 124,127 125,058 96,799 
Investment securities – held to maturity20,098 1,426 1,479 1,485 1,456 
Loans (b)294,457 288,372 290,230 294,704 237,013 
Allowance for loan and lease losses (4,558)(4,868)(5,355)(5,730)(4,714)
Net loans289,899 283,504 284,875 288,974 232,299 
Equity investments7,798 8,180 7,737 7,521 6,386 
Mortgage servicing rights2,208 1,818 1,833 1,793 1,680 
Goodwill10,916 10,916 10,885 10,958 9,317 
Other (b) 40,160 35,326 36,137 35,025 30,894 
Total assets$541,246 $557,191 $553,515 $554,212 $474,414 
Liabilities
Deposits
Noninterest-bearing$150,798 $155,175 $156,305 $154,190 $120,641 
Interest-bearing299,399 302,103 292,597 298,693 254,426 
Total deposits450,197 457,278 448,902 452,883 375,067 
Borrowed funds
Federal Home Loan Bank borrowings1,500 
Bank notes and senior debt16,206 20,661 22,993 24,408 22,139 
Subordinated debt6,766 6,996 7,074 7,120 6,241 
Other (b)3,599 3,127 3,404 3,285 3,150 
Total borrowed funds26,571 30,784 33,471 34,813 33,030 
Allowance for unfunded lending related commitments 639 662 646 645 507 
Accrued expenses and other liabilities14,623 12,741 14,199 11,186 11,931 
Total liabilities492,030 501,465 497,218 499,527 420,535 
Equity
Preferred stock (c)
Common stock - $5 par value
Authorized 800 shares, issued 543 shares2,713 2,713 2,713 2,713 2,713 
Capital surplus17,487 17,457 17,453 15,928 15,879 
Retained earnings51,058 50,228 49,541 48,663 48,113 
Accumulated other comprehensive income (loss)(5,731)409 1,079 1,463 1,290 
Common stock held in treasury at cost: 128, 123, 120, 118, and 118 shares(16,346)(15,112)(14,527)(14,140)(14,146)
Total shareholders’ equity49,181 55,695 56,259 54,627 53,849 
Noncontrolling interests35 31 38 58 30 
Total equity49,216 55,726 56,297 54,685 53,879 
Total liabilities and equity$541,246 $557,191 $553,515 $554,212 $474,414 
(a)Amounts include balances held with the Federal Reserve Bank of $48.4 billion, $73.8 billion, $75.1 billion, $71.9 billion and $85.8 billion as of March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021, respectively.
(b)Amounts include assets and liabilities for which PNC has elected the fair value option. Our 2021 Form 10-K included, and our first quarter 2022 Form 10-Q will include, additional information regarding these items.
(c)Par value less than $0.5 million at each date.




THE PNC FINANCIAL SERVICES GROUP, INC.

Page 3
Table 3: Average Consolidated Balance Sheet (Unaudited) (a) (b)
Three months ended
March 31December 31September 30June 30March 31
In millions20222021202120212021
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency$67,498 $64,521 $63,163 $56,042 $45,298 
Non-agency1,007 9741,0511,1421,236
Commercial mortgage-backed5,229 5,5386,1346,4656,241
Asset-backed6,2256,2065,6085,8555,304
U.S. Treasury and government agencies47,46844,41538,14932,41922,309
Other4,8764,7414,9945,1074,561
Total securities available for sale132,303126,395119,099107,03084,949
Securities held to maturity
Residential mortgage-backed106 
U.S. Treasury and government agencies919812807802797
Other569642680671650
Total securities held to maturity1,5941,4541,4871,4731,447
Total investment securities133,897127,849120,586108,50386,396
Loans
Commercial and industrial155,481152,355152,964137,892129,996
Commercial real estate34,00435,25637,05431,61128,598
Equipment lease financing6,0996,1836,3006,3326,332
Consumer54,96556,24457,53352,57550,904
Residential real estate40,15238,87237,47527,19722,305
Total loans290,701288,910291,326255,607238,135
Interest-earning deposits with banks (c)62,54075,37780,27478,52285,410
Other interest-earning assets9,4179,1139,1138,0797,829
Total interest-earning assets496,555501,249501,299450,711417,770
Noninterest-earning assets53,54158,12357,94353,71850,450
Total assets$550,096 $559,372 $559,242 $504,429 $468,220 
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market$62,596 $65,214 $82,911 $64,990 $59,083 
Demand112,372108,345106,58899,09191,619
Savings108,532104,64489,67987,30782,926
Time deposits16,04318,02919,29318,04818,449
Total interest-bearing deposits299,543296,232298,471269,436252,077
Borrowed funds
Federal Home Loan Bank borrowings2652,411
Bank notes and senior debt18,01521,58122,57322,62022,799
Subordinated debt6,7736,7796,7876,2185,929
Other5,5245,9874,9925,0464,057
Total borrowed funds30,31234,34734,35234,14935,196
Total interest-bearing liabilities329,855330,579332,823303,585287,273
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits153,726156,549155,948132,283113,299
Accrued expenses and other liabilities14,05816,81815,33214,75514,258
Equity52,45755,42655,13953,80653,390
Total liabilities and equity$550,096 $559,372 $559,242 $504,429 $468,220 
(a)Calculated using average daily balances.
(b)Nonaccrual loans are included in loans, net of unearned income. The impact of financial derivatives used in interest rate risk management is included in the interest income/expense and average yields/rates of the related assets and liabilities. Basis adjustments related to hedged items are included in noninterest-earning assets and noninterest-bearing liabilities. Average balances of securities are based on amortized historical cost (excluding adjustments to fair value, which are included in other assets). Average balances for certain loans and borrowed funds accounted for at fair value are included in noninterest-earning assets and noninterest-bearing liabilities, with changes in fair value recorded in Noninterest income.
(c)Amounts include average balances held with the Federal Reserve Bank of Cleveland of $62.3 billion, $75.1 billion, $80.1 billion, $78.3 billion and $85.2 billion for the three months ended March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021, respectively.



THE PNC FINANCIAL SERVICES GROUP, INC.

Page 4
Table 4: Details of Net Interest Margin (Unaudited)
Three months ended
March 31December 31September 30June 30March 31
20222021202120212021
Average yields/rates (a)
Yield on interest-earning assets
Investment securities
Securities available for sale
Residential mortgage-backed
Agency1.73 %1.47 %1.41 %1.61 %1.72 %
Non-agency7.53 %7.36 %8.07 %7.85 %7.24 %
Commercial mortgage-backed2.36 %2.37 %2.34 %2.49 %2.58 %
Asset-backed1.35 %1.48 %1.50 %2.07 %1.84 %
U.S. Treasury and government agencies1.18 %1.17 %1.18 %1.30 %1.68 %
Other2.73 %2.77 %2.90 %3.00 %3.28 %
Total securities available for sale1.62 %1.50 %1.51 %1.73 %1.95 %
Securities held to maturity
U.S. Treasury and government agencies2.61 %2.89 %2.88 %2.86 %2.83 %
Other4.17 %4.20 %4.33 %3.67 %4.17 %
Total securities held to maturity2.99 %3.47 %3.54 %3.23 %3.43 %
Total investment securities1.64 %1.52 %1.54 %1.75 %1.97 %
Loans
Commercial and industrial2.75 %2.90 %2.80 %2.89 %2.91 %
Commercial real estate2.79 %2.86 %3.17 %2.92 %2.80 %
Equipment lease financing3.74 %3.81 %3.83 %3.76 %3.90 %
Consumer4.69 %4.71 %4.85 %4.82 %4.78 %
Residential real estate3.10 %3.26 %3.15 %3.50 %3.53 %
Total loans3.19 %3.32 %3.32 %3.38 %3.38 %
Interest-earning deposits with banks0.19 %0.15 %0.16 %0.11 %0.10 %
Other interest-earning assets2.07 %2.14 %2.03 %2.46 %2.34 %
Total yield on interest-earning assets2.37 %2.36 %2.36 %2.40 %2.40 %
Rate on interest-bearing liabilities
Interest-bearing deposits
Money market0.03 %0.02 %0.03 %0.03 %0.03 %
Demand0.02 %0.02 %0.03 %0.03 %0.04 %
Savings0.04 %0.04 %0.04 %0.05 %0.06 %
Time deposits0.13 %0.11 %0.12 %0.20 %0.32 %
Total interest-bearing deposits0.04 %0.04 %0.04 %0.05 %0.06 %
Borrowed funds
Federal Home Loan Bank borrowings0.35 %0.43 %
Bank notes and senior debt1.02 %0.94 %0.97 %0.98 %1.04 %
Subordinated debt1.40 %1.28 %1.28 %1.35 %1.43 %
Other
0.97 %0.79 %0.93 %0.97 %1.21 %
Total borrowed funds1.10 %0.98 %1.03 %1.04 %1.09 %
Total rate on interest-bearing liabilities0.13 %0.13 %0.14 %0.16 %0.19 %
Interest rate spread2.24 %2.23 %2.22 %2.24 %2.21 %
Benefit from use of noninterest bearing sources (b)0.04 %0.04 %0.05 %0.05 %0.06 %
Net interest margin2.28 %2.27 %2.27 %2.29 %2.27 %
(a)Yields and rates are calculated using the applicable annualized interest income or interest expense divided by the applicable average earning assets or interest-bearing liabilities. Net interest margin is the total yield on interest-earning assets minus the total rate on interest-bearing liabilities and includes the benefit from use of noninterest-bearing sources. To provide more meaningful comparisons of net interest margins, we use net interest income on a taxable-equivalent basis in calculating average yields used in the calculation of net interest margin 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 in the Consolidated Income Statement. The taxable-equivalent adjustments to net interest income for the three months ended March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021 were $22 million, $22 million, $22 million, $15 million and $15 million, respectively.
(b)Represents the positive effects of investing noninterest-bearing sources in interest-earning assets.



THE PNC FINANCIAL SERVICES GROUP, INC.

Page 5
Table 5: Details of Loans (Unaudited)
March 31December 31September 30June 30March 31
In millions20222021202120212021
Commercial
Commercial and industrial
Manufacturing$25,035 $22,597 $22,760 $22,709 $20,032 
Retail/wholesale trade25,02722,80322,23822,59620,349
Service providers20,58420,75020,96922,30319,403
Financial services17,67417,95018,02215,94713,382
Real estate related (a)15,45915,12314,80914,94513,052
Technology, media & telecommunications10,68410,0708,9209,1957,746
Health care9,8109,94410,56711,7138,741
Transportation and warehousing7,2097,1367,3187,9676,751
Other industries26,39226,56027,13227,92520,342
Total commercial and industrial157,874 152,933 152,735 155,300 129,798 
Commercial real estate34,171 34,015 36,195 37,964 28,319 
Equipment lease financing6,216 6,130 6,257 6,376 6,389 
Total commercial198,261193,078195,187199,640164,506
Consumer
Residential real estate41,566 39,712 38,214 36,846 22,418 
Home equity24,185 24,061 24,479 25,174 23,493 
Automobile16,001 16,635 17,265 17,551 13,584 
Credit card6,464 6,626 6,466 6,528 5,675 
Education2,441 2,533 2,653 2,726 2,842 
Other consumer5,539 5,727 5,966 6,239 4,495 
Total consumer96,196 95,294 95,043 95,064 72,507 
Total loans$294,457 $288,372 $290,230 $294,704 $237,013 
(a)Represents loans to customers in the real estate and construction industries.



THE PNC FINANCIAL SERVICES GROUP, INC.

Page 6
Allowance for Credit Losses (Unaudited)

Table 6: Change in Allowance for Loan and Lease Losses
Three months ended
March 31December 31September 30June 30March 31
Dollars in millions20222021202120212021
Allowance for loan and lease losses
Beginning balance$4,868 $5,355 $5,730 $4,714 $5,361 
Acquisition PCD reserves(59)1,115 
Gross charge-offs:
Commercial and industrial(41)(35)(46)(245)(59)
Commercial real estate(10)(2)(1)(28)(5)
Equipment lease financing(1)(4)(3)(1)(5)
Residential real estate(7)(4)(4)(3)(4)
Home equity(4)(4)(2)(7)(7)
Automobile(52)(49)(33)(35)(52)
Credit card(68)(60)(62)(65)(69)
Education(4)(4)(3)(3)(5)
Other consumer(64)(62)(52)(41)(37)
Total gross charge-offs(251)(224)(206)(428)(243)
Recoveries:
Commercial and industrial30 20 25 29 14 
Commercial real estate
Equipment lease financing
Residential real estate
Home equity21 23 25 21 17 
Automobile31 26 38 41 38 
Credit card12 10 13 11 12 
Education
Other consumer10 
Total recoveries114 100 125 122 97 
Net (charge-offs) / recoveries:
Commercial and industrial(11)(15)(21)(216)(45)
Commercial real estate(9)(26)(4)
Equipment lease financing(1)(1)(2)
Residential real estate(2)
Home equity17 19 23 14 10 
Automobile(21)(23)(14)
Credit card(56)(50)(49)(54)(57)
Education(3)(2)(1)(1)(3)
Other consumer(54)(56)(43)(34)(32)
Total net (charge-offs) (a)(137)(124)(81)(306)(146)
Provision for (recapture of) credit losses (b)(172)(362)(229)206 (502)
Other(1)(1)(6)
Ending balance$4,558 $4,868 $5,355 $5,730 $4,714 
Supplemental Information
Net charge-offs
Commercial net charge-offs$(18)$(16)$(21)$(240)$(51)
Consumer net charge-offs(119)(108)(60)(66)(95)
Total net charge-offs (a)$(137)$(124)$(81)$(306)$(146)
Net charge-offs to average loans (annualized)0.19 %0.17 %0.11 %0.48 %0.25 %
Commercial0.04 %0.03 %0.04 %0.55 %0.13 %
Consumer0.51 %0.45 %0.25 %0.33 %0.53 %
(a)    Amounts for the three months ended June 30, 2021 included $248 million attributable to BBVA, primarily related to commercial and industrial loans, which were largely the result of required purchase accounting treatment for the BBVA acquisition on June 1, 2021.
(b)    See Table 7 for the components of the Provision for (recapture of) credit losses being reported on the Consolidated Income Statement.



THE PNC FINANCIAL SERVICES GROUP, INC.

Page 7
Allowance for Credit Losses (Unaudited) (Continued)

Table 7: Components of the Provision for (Recapture of) Credit Losses
Three months ended
March 31December 31September 30June 30March 31
In millions2022202120212021 (a)2021
Provision for (recapture of) credit losses
Loans and leases$(172)$(362)$(229)$206 $(502)
Unfunded lending related commitments(23)16 92 (77)
Investment securities 25 26 
Other financial assets(14)19 
Total provision for (recapture of) credit losses$(208)$(327)$(203)$302 $(551)
(a)     Amounts include $1.0 billion of provision for credit losses that was recorded as part of the BBVA acquisition on June 1, 2021.

Table 8: Allowance for Credit Losses by Loan Class (a)
March 31, 2022December 31, 2021March 31, 2021

Dollars in millions
Allowance AmountTotal Loans% of Total LoansAllowance AmountTotal Loans% of Total LoansAllowance AmountTotal Loans% of Total Loans
Allowance for loan and lease losses
Commercial
Commercial and industrial$1,884 $157,874 1.19 %$1,879 $152,933 1.23 %$1,815 $129,798 1.40 %
Commercial real estate1,034 34,171 3.03 %1,216 34,015 3.57 %1,126 28,319 3.98 %
Equipment lease financing85 6,216 1.37 %90 6,130 1.47 %142 6,389 2.22 %
Total commercial3,003 198,261 1.51 %3,185 193,078 1.65 %3,083 164,506 1.87 %
Consumer
Residential real estate25 41,566 0.06 %21 39,712 0.05 %(17)22,418 (0.08)%
Home equity170 24,185 0.70 %149 24,061 0.62 %239 23,493 1.02 %
Automobile276 16,001 1.72 %372 16,635 2.24 %344 13,584 2.53 %
Credit card708 6,464 10.95 %712 6,626 10.75 %693 5,675 12.21 %
Education66 2,441 2.70 %71 2,533 2.80 %112 2,842 3.94 %
Other consumer310 5,539 5.60 %358 5,727 6.25 %260 4,495 5.78 %
Total consumer1,555 96,196 1.62 %1,683 95,294 1.77 %1,631 72,507 2.25 %
Total
4,558 $294,457 1.55 %4,868 $288,372 1.69 %4,714 $237,013 1.99 %
Allowance for unfunded lending related commitments
639 662 507 
Allowance for credit losses
$5,197 $5,530 $5,221 
Supplemental Information
Allowance for credit losses to total loans
1.76 %1.92 %2.20 %
Commercial1.81 %1.94 %2.12 %
Consumer1.67 %1.87 %2.39 %

(a)     Excludes allowances for investment securities and other financial assets, which together totaled $158 million, $171 million and $136 million at March 31, 2022, December 31, 2021 and March 31, 2021, respectively.


THE PNC FINANCIAL SERVICES GROUP, INC.

Page 8
Details of Nonperforming Assets (Unaudited)

Table 9: Nonperforming Assets by Type
March 31December 31September 30June 30March 31
Dollars in millions20222021202120212021
Nonperforming loans, including TDRs
Commercial
Commercial and industrial
Service providers$173 $188 $220 $206 $79 
Manufacturing70 52 62 65 55 
Retail/wholesale trade59 50 59 71 66 
Real estate related (a)39 64 49 78 48 
Health care37 46 56 71 19 
Technology, media & telecommunications36 33 37 62 43 
Transportation and warehousing28 18 21 18 18 
Other industries218 345 325 359 184 
Total commercial and industrial660 796 829 930 512 
Commercial real estate332 364 365 501 221 
Equipment lease financing10 15 16 
Total commercial998 1,168 1,204 1,446 749 
Consumer (b)
Residential real estate526 517 533 503 541 
Home equity576 596 592 626 656 
Automobile181 183 184 191 178 
Credit card
Other consumer
Total consumer1,300 1,312 1,324 1,333 1,389 
Total nonperforming loans (c)2,298 2,480 2,528 2,779 2,138 
OREO and foreclosed assets26 26 31 39 41 
Total nonperforming assets$2,324 $2,506 $2,559 $2,818 $2,179 
Nonperforming loans to total loans0.78 %0.86 %0.87 %0.94 %0.90 %
Nonperforming assets to total loans, OREO and foreclosed assets0.79 %0.87 %0.88 %0.96 %0.92 %
Nonperforming assets to total assets0.43 %0.45 %0.46 %0.51 %0.46 %
Allowance for loan and lease losses to nonperforming loans 198 %196 %212 %206 %220 %
(a)Represents loans related to customers in the real estate and construction industries.
(b)Excludes most unsecured consumer loans and lines of credit, which are charged off after 120 to 180 days past due and are not placed on nonperforming status.
(c)Nonperforming loans exclude certain government insured or guaranteed loans, loans held for sale and loans accounted for under the fair value option.



Table 10: Change in Nonperforming Assets
January 1, 2022 -October 1, 2021 -July 1, 2021 -April 1, 2021 -January 1, 2021 -
In millionsMarch 31, 2022December 31, 2021September 30, 2021June 30, 2021March 31, 2021
Beginning balance$2,506 $2,559 $2,818 $2,179 $2,337 
Acquired nonperforming assets (a)880 
New nonperforming assets346 395 365 207 249 
Charge-offs and valuation adjustments(62)(53)(71)(61)(70)
Principal activity, including paydowns and payoffs(274)(240)(333)(264)(186)
Asset sales and transfers to loans held for sale(21)(3)(30)(15)(86)
Returned to performing status(171)(152)(190)(108)(65)
Ending balance$2,324 $2,506 $2,559 $2,818 $2,179 
(a)Represents nonperforming assets acquired as a part of the BBVA acquisition on June 1, 2021 and includes $871 million of loans and $9 million of OREO and foreclosed assets. Our second quarter 2021 Form 10-Q included additional information on the BBVA acquisition.




THE PNC FINANCIAL SERVICES GROUP, INC.

Page 9
Accruing Loans Past Due (Unaudited)                  

Under the CARES Act credit reporting rules, certain loans modified due to COVID-19 related hardships are not being reported as past due
for the periods presented based on the contractual terms of the loan, even where borrowers may not be making payments on their loans during the modification period. Our 2021 Form 10-K included additional information on COVID-19 related loan modifications.

Table 11: Accruing Loans Past Due 30 to 59 Days (a)
March 31December 31September 30June 30March 31
Dollars in millions20222021202120212021
Commercial
Commercial and industrial$185$235$97$72$80
Commercial real estate684668512
Equipment lease financing20255321
Total commercial27330617080113
Consumer
Residential real estate
Non government insured 23931017818261
Government insured66698188101
Home equity4153454443
Automobile1091461149876
Credit card3949423731
Education
Non government insured 55556
Government insured
3638404143
Other consumer4735343111
Total consumer582705539526372
Total$855$1,011$709$606$485
Supplemental Information
Total accruing loans past due 30-59 days to total loans0.29 %0.35 %0.24 %0.21 %0.20 %
Commercial0.14 %0.16 %0.09 %0.04 %0.07 %
Consumer0.61 %0.74 %0.57 %0.55 %0.51 %
(a)Excludes loans held for sale.




THE PNC FINANCIAL SERVICES GROUP, INC.

Page 10
Accruing Loans Past Due (Unaudited) (Continued)

Table 12: Accruing Loans Past Due 60 to 89 Days (a)
March 31December 31September 30June 30March 31
Dollars in millions20222021202120212021
Commercial
Commercial and industrial$64$72$50$27$13
Commercial real estate4124231
Equipment lease financing12441
Total commercial10698563415
Consumer
Residential real estate
Non government insured 4778535313
Government insured3741455260
Home equity1618181720
Automobile2640232019
Credit card2833272424
Education
Non government insured
32323
Government insured
2123232022
Other consumer262215166
Total consumer204257207204167
Total$310$355$263$238$182
Supplemental Information
Total accruing loans past due 60-89 days to total loans0.11 %0.12 %0.09 %0.08 %0.08 %
Commercial0.05 %0.05 %0.03 %0.02 %0.01 %
Consumer0.21 %0.27 %0.22 %0.21 %0.23 %
(a)Excludes loans held for sale.





THE PNC FINANCIAL SERVICES GROUP, INC.

Page 11
Accruing Loans Past Due (Unaudited) (Continued)

Table 13: Accruing Loans Past Due 90 Days or More (a)
<
March 31December 31September 30June 30March 31
Dollars in millions20222021202120212021
Commercial
Commercial and industrial$105$132$56$45$63
Commercial real estate71112
Total commercial112133674763
Consumer
Residential real estate
Non government insured 415933