PNC · The PNC Financial Services Group, Inc.

PNC's first quarter 2026 results reflect the immediate impact of the FirstBank acquisition completed on January 5, 2026, which contributed significantly to loan and deposit growth while also generating integration costs. Net interest income increased 6% to $4.0 billion, driven by the addition of FirstBank, lower funding costs, and commercial loan growth, with net interest margin expanding 11 basis points to 2.95%. Fee income declined 2% primarily due to a $31 million decline in mortgage servicing rights valuation, while other noninterest income included negative $32 million of Visa derivative adjustments. Noninterest expense increased 5% primarily due to FirstBank operating and integration expenses, with $98 million of pre-tax integration costs incurred during the quarter. Credit quality showed net loan charge-offs of $253 million, including $45 million related to FirstBank loans, while the allowance for credit losses to total loans decreased to 1.52%. Management commentary from Chairman and CEO Bill Demchak highlighted a 'great start' to 2026 with successful FirstBank integration and strong legacy loan growth, positioning the company for continued momentum. The company maintained strong capital return with $1.4 billion returned to shareholders through dividends and repurchases, while the CET1 capital ratio declined to 10.1% from 10.6% in the prior quarter.