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PNC NEWS RELEASE MEDIA : Marcey Zwiebel ( 412 ) 762-4550 media.relations@pnc.com INVESTORS : Bryan Gill ( 412 ) 768-4143 investor.relations@pnc.com PNC REPORTS SECOND QUARTER 2021 NET INCOME OF $ 1.1 BILLION , $ 2.43 DILUTED EPS BBVA USA acquisition successfully closed ; strong fee income growth ; solid credit quality metrics PITTSBURGH , July 14 , 2021 - The PNC Financial Services Group , Inc. ( NYSE : PNC ) today reported : For the quarter 1Q21 2Q20 Second Quarter Highlights In millions , except per share data and as noted 2Q21 Financial Results Revenue $ 4,667 Noninterest expense 3,050 $ 4,220 2,574 $ 4,076 2,515 Pretax , pre - provision earnings ( non - GAAP ) Provision for ( recapture of ) credit losses 1,617 1,646 1,561 302 ( 551 ) 2,463 Net income ( loss ) from continuing operations 1,103 1,826 ( 744 ) Per Common Share Diluted earnings ( loss ) from continuing operations - as reported $ 2.43 $ 4.10 $ ( 1.90 ) Diluted earnings ( loss ) from continuing 4.50 ΝΑ ΝΑ operations - as adjusted ( non - GAAP ) 120.25 93.83 118.47 96.57 115.26 93.54 Book value Tangible book value ( non - GAAP ) Balance Sheet & Credit Quality Total loans ( in billions ) $ 294.7 Total deposits ( in billions ) PNC legacy net loan charge - offs Acquired net loan charge - offs 452.9 58 248 Allowance for credit losses to total loans 2.16 % $ 237.0 $ 258.2 375.1 346.0 146 236 NA ΝΑ 2.20 % 2.55 % Selected Ratios Return on average common equity 8.32 % Return on average assets 0.88 14.31 % 1.58 Net interest margin ( non - GAAP ) 2.29 2.27 30.11 % 3.21 2.52 Noninterest income to total revenue Efficiency 45 44 38 65 61 62 Common Equity Tier 1 capital ratio 10.0 12.6 11.3 ■ Closed the acquisition of BBVA USA on June 1 , 2021 ⚫ Second quarter results include one month impact of BBVA USA ■ Adjusted EPS was $ 4.50 , excluding the initial provision for credit losses and integration costs related to BBVA USA ■ Revenue increased 11 % linked quarter driven by the BBVA USA acquisition and strong PNC legacy noninterest income growth Expenses increased 18 % linked quarter including integration expenses , increased business activity and litigation reserves ■ Provision for credit losses was $ 302 million , as a provision recapture of $ 704 million was more than offset by a $ 1.0 billion initial provision for BBVA USA ■ Total loans and deposits increased 24 % and 21 % , respectively , linked quarter due to the BBVA USA acquisition ■ Solid credit performance ; acquired net loan charge - offs of $ 248 million were primarily due to purchase accounting Adjusted EPS is a non - GAAP measure calculated by excluding the initial provision for credit losses for BBVA USA recorded on June 1 , 2021 and integration costs . See this and other non - GAAP financial measures in the consolidated financial highlights accompanying this news release . From Bill Demchak , PNC Chairman , President and Chief Executive Officer : " PNC had a successful second quarter . We closed on our acquisition of BBVA USA earlier than anticipated , organically grew fee income , deployed excess liquidity through securities purchases and maintained solid credit quality metrics . Underscoring our strong financial position and commitment to capital return , our board recently approved a 10 cent per share , or 9 % , increase to our common stock dividend and announced $ 2.9 billion in share repurchase programs . Looking ahead , we are working towards a successful conversion of BBVA USA and are excited about the substantial opportunities for growth and efficiency improvements as we move forward as a combined company . " - more -