Announced agreement to acquire FirstBank on Sept. 8, 2025
PITTSBURGH, Oct. 15, 2025 /PRNewswire/ -- The PNC Financial Services Group, Inc. (NYSE:PNC) today reported:
For the quarter
In millions, except per share data and as noted
3Q25
2Q25
3Q24
Third Quarter Highlights
Financial Results
Comparisons reflect 3Q25 vs. 2Q25
Net interest income (NII)
$ 3,648
$ 3,555
$ 3,410
Income Statement
▪ PPNR increased 8%; generated 2%
positive operating leverage
▪ Revenue increased 4%
, NII increased 3%; NIM of 2.79%
declined 1 bp driven by 5% avg.
commercial deposit growth
, Fee income increased 9%
, Other noninterest income of $198
million
▪ Noninterest expense increased 2%
, Efficiency ratio improved to 59%
Balance Sheet
▪ Average loans increased $3.2 billion,
or 1%, driven by 2% growth in
commercial and industrial loans
▪ Average deposits grew $8.9 billion, or
2%, driven by commercial deposit growth
▪ Net loan charge-offs were $179 million,
or 0.22% annualized to average loans
▪ AOCI improved $0.6 billion to negative
$4.1 billion
▪ TBV per share increased 4% to $107.84
▪ Maintained strong capital position
, CET1 capital ratio increased to 10.6%
, Returned $1 billion of capital through
common dividends and share
repurchases
▪ On September 8, 2025, PNC announced
an agreement to acquire FirstBank for
implied consideration of $4.1 billion, with
an expected close in early 2026
Fee income (non-GAAP)
2,069
1,894
1,953
Other noninterest income
198
212
69
Noninterest income
2,267
2,106
2,022
Revenue
5,915
5,661
5,432
Noninterest expense
3,461
3,383
3,327
Pretax, pre-provision earnings (PPNR) (non-GAAP)
2,454
2,278
2,105
Provision for credit losses
167
254
243
Net income
1,822
1,643
1,505
Per Common Share
Diluted earnings per share (EPS)
$ 4.35
$ 3.85
$ 3.49
Average diluted common shares outstanding
396
397
400
Book value
135.67
131.61
124.56
Tangible book value (TBV) (non-GAAP)
107.84
103.96
96.98
Balance Sheet & Credit Quality
Average loans In billions
$ 325.9
$ 322.8
$ 319.6
Average securities In billions
144.4
141.9
142.3
Average deposits In billions
431.8
423.0
422.1
Accumulated other comprehensive income (loss) (AOCI)
In billions
(4.1)
(4.7)
(5.1)
Net loan charge-offs
179
198
286
Allowance for credit losses to total loans
1.61 %
1.62 %
1.65 %
Selected Ratios
Return on average common shareholders' equity
13.24 %
12.20 %
11.72 %
Return on average assets
1.27
1.17
1.05
Net interest margin (NIM) (non-GAAP)
2.79
2.80
2.64
Noninterest income to total revenue
38
37
37
Efficiency
59
60
61
Effective tax rate
20.3
18.8
19.2
Common equity Tier 1 (CET1) capital ratio
10.6
10.5
10.3
See non-GAAP financial measures in the Consolidated Financial Highlights accompanying this
release. Totals may not sum due to rounding.
From Bill Demchak, PNC Chairman and Chief Executive Officer:"We delivered another great quarter with better than expected financial results and steady client growth across all our business lines. Fee income grew 9% and expenses were well-controlled which contributed to another quarter of positive operating leverage. Credit performed well and we continued to build on our strong capital levels. The planned acquisition of FirstBank positions us for accelerated expansion in Colorado and Arizona as we continue to strategically grow our national franchise."
Pending Acquisition of FirstBank
On September 8, 2025, PNC announced a definitive agreement to acquire FirstBank Holding Company, including its banking subsidiary FirstBank, headquartered in Lakewood, CO for implied consideration of $4.1 billion. FirstBank operates 95 branches, with a leading position in Colorado and a substantial presence in Arizona. As of June 30, 2025, FirstBank had $26.8 billion in assets. The combination will more than triple PNC's network in Colorado to 120 branches and increase PNC's presence in Arizona to more than 70 branches. The transaction is expected to close in early 2026, subject to receipt of all required approvals and other customary closing conditions.
Income Statement Highlights
Third quarter 2025 compared with second quarter 2025
Total revenue of $5.9 billion increased $254 million, or 4%, driven by growth in both noninterest income and net interest income.
Net interest income of $3.6 billion increased $93 million, or 3%, driven by the continued benefit of fixed rate asset repricing, loan growth and one additional day in the quarter.
Net interest margin declined 1 basis point to 2.79%, driven by average commercial deposit growth of 5%.
Fee income of $2.1 billion increased $175 million, or 9%, driven by broad-based growth across categories.
Other noninterest income of $198 million decreased $14 million reflecting negative Visa derivative adjustments, partially offset by higher private equity revenue.
Noninterest expense of $3.5 billion increased 2% driven by increased business activity and continued investments in technology and branches.
Provision for credit losses was $167 million in the third quarter.
The effective tax rate was 20.3% for the third quarter and 18.8% for the second quarter.
Balance Sheet Highlights
Third quarter 2025 compared with second quarter 2025 or September 30, 2025 compared with June 30, 2025
Average loans of $325.9 billion increased $3.2 billion, or 1%, driven by growth in the commercial and industrial portfolio of $4.3 billion, or 2%, partially offset by a decline in commercial real estate loans of $1.0 billion, or 3%. Consumer loan balances were stable.
Credit quality performance:
Delinquencies of $1.2 billion decreased $70 million, or 5%, due to lower commercial and consumer loan delinquencies.
Total nonperforming loans of $2.1 billion were stable.
Net loan charge-offs of $179 million decreased $19 million reflecting lower commercial real estate net loan charge-offs.
The allowance for credit losses was stable at $5.3 billion. The allowance for credit losses to total loans was 1.61% at September 30, 2025 and 1.62% at June 30, 2025.
Average investment securities of $144.4 billion increased $2.5 billion, or 2%, reflecting net purchase activity, primarily of agency residential mortgage-backed securities late in the second quarter.
Average deposits of $431.8 billion increased $8.9 billion, or 2%, due to commercial deposit growth. Consumer deposits were stable.
PNC maintained a strong capital and liquidity position:
On October 2, 2025, the PNC board of directors declared a quarterly cash dividend on common stock of $1.70 per share to be paid on November 5, 2025 to shareholders of record at the close of business October 14, 2025.
PNC returned $1.0 billion of capital to shareholders, reflecting $0.7 billion of dividends on common shares and $0.3 billion of common share repurchases.
The Basel III common equity Tier 1 capital ratio was an estimated 10.6% at September 30, 2025 and was 10.5% at June 30, 2025.
PNC's average LCR for the three months ended September 30, 2025 was 107%, exceeding the regulatory minimum requirement throughout the quarter.
Earnings Summary
In millions, except per share data
3Q25
2Q25
3Q24
Net income
$ 1,822
$ 1,643
$ 1,505
Net income attributable to diluted common shareholders
$ 1,723
$ 1,532
$ 1,396
Diluted earnings per common share
$ 4.35
$ 3.85
$ 3.49
Average diluted common shares outstanding
396
397
400
Cash dividends declared per common share
$ 1.70
$ 1.60
$ 1.60
The Consolidated Financial Highlights accompanying this news release include additional information regarding reconciliations of non-GAAP financial measures to reported (GAAP) amounts. This information supplements results as reported in accordance with GAAP and should not be viewed in isolation from, or as a substitute for, GAAP results. Information in this news release, including the financial tables, is unaudited.
CONSOLIDATED REVENUE REVIEW
Revenue
Change
Change
3Q25 vs
3Q25 vs
In millions
3Q25
2Q25
3Q24
2Q25
3Q24
Net interest income
$ 3,648
$ 3,555
$ 3,410
3 %
7 %
Noninterest income
2,267
2,106
2,022
8 %
12 %
Total revenue
$ 5,915
$ 5,661
$ 5,432
4 %
9 %
Total revenue for the third quarter of 2025 increased $254 million compared to the second quarter of 2025 and $483 million compared to the third quarter of 2024. In each comparison the increase was driven by growth in both noninterest income and net interest income.
Net interest income of $3.6 billion increased $93 million from the second quarter of 2025, driven by the continued benefit of fixed rate asset repricing, loan growth and one additional day in the quarter. Compared to the third quarter of 2024, net interest income increased $238 million due to lower funding costs, the benefit of fixed rate asset repricing and loan growth.
Net interest margin was 2.79% in the third quarter of 2025, decreasing 1 basis point from the second quarter of 2025 driven by average commercial deposit growth of 5%. Compared to the third quarter of 2024, net interest margin increased 15 basis points reflecting the benefit of fixed rate asset repricing.
Noninterest Income
Change
Change
3Q25 vs
3Q25 vs
In millions
3Q25
2Q25
3Q24
2Q25
3Q24
Asset management and brokerage
$ 404
$ 391
$ 383
3 %
5 %
Capital markets and advisory
432
321
371
35 %
16 %
Card and cash management
737
737
698
—
6 %
Lending and deposit services
335
317
320
6 %
5 %
Residential and commercial mortgage
161
128
181
26 %
(11) %
Fee income (non-GAAP)
2,069
1,894
1,953
9 %
6 %
Other
198
212
69
(7) %
187 %
Total noninterest income
$ 2,267
$ 2,106
$ 2,022
8 %
12 %
Noninterest income for the third quarter of 2025 increased $161 million, or 8%, compared with the second quarter of 2025 driven by strong fee income growth. Asset management and brokerage fees increased $13 million driven by higher average equity markets. Capital markets and advisory revenue increased $111 million primarily due to an increase in merger and acquisition advisory activity, higher underwriting fees, and increased loan syndication revenue. Lending and deposit services increased $18 million primarily due to increased customer activity. Residential and commercial mortgage revenue increased $33 million driven by higher mortgage servicing rights valuation, net of economic hedge, and increased residential mortgage production revenue. Other noninterest income decreased $14 million reflecting negative Visa derivative adjustments, partially offset by higher private equity revenue. Visa derivative adjustments were negative $35 million in the third quarter of 2025 and positive $2 million in the second quarter of 2025.
Noninterest income for the third quarter of 2025 increased $245 million, or 12%, from the third quarter of 2024, driven by higher other noninterest income and broad-based fee income growth. Other noninterest income in the third quarter of 2025 included negative $35 million of Visa derivative adjustments compared to negative $128 million in the third quarter of 2024.
CONSOLIDATED EXPENSE REVIEW
Noninterest Expense
Change
Change
3Q25 vs
3Q25 vs
In millions
3Q25
2Q25
3Q24
2Q25
3Q24
Personnel
$ 1,970
$ 1,889
$ 1,869
4 %
5 %
Occupancy
235
235
234
—
—
Equipment
416
394
357
6 %
17 %
Marketing
93
99
93
(6) %
—
Other
747
766
774
(2) %
(3) %
Total noninterest expense
$ 3,461
$ 3,383
$ 3,327
2 %
4 %
Noninterest expense for the third quarter of 2025 increased $78 million compared to the second quarter of 2025 and $134 million compared with the third quarter of 2024. In both comparisons, the increase was driven by increased business activity and continued investments in technology and branches.
The effective tax rate was 20.3% for the third quarter of 2025, 18.8% for the second quarter of 2025 and 19.2% for the third quarter of 2024.
CONSOLIDATED BALANCE SHEET REVIEW
Loans
Change
Change
3Q25 vs
3Q25 vs
In billions
3Q25
2Q25
3Q24
2Q25
3Q24
Average
Commercial and industrial
$ 189.0
$ 184.7
$ 177.0
2 %
7 %
Commercial real estate
30.9
31.8
35.5
(3) %
(13) %
Equipment lease financing
6.9
6.8
6.5
1 %
6 %
Commercial
$ 226.8
$ 223.4
$ 219.0
2 %
4 %
Consumer
99.2
99.4
100.6
—
(1) %
Average loans
$ 325.9
$ 322.8
$ 319.6
1 %
2 %
Quarter end
Commercial and industrial
$ 190.2
$ 188.8
$ 178.9
1 %
6 %
Commercial real estate
30.3
31.3
35.1
(3) %
(14) %
Equipment lease financing
6.9
6.9
6.7
—
3 %
Commercial
$ 227.4
$ 227.0
$ 220.7
—
3 %
Consumer
99.2
99.3
100.7
—
(1) %
Total loans
$ 326.6
$ 326.3
$ 321.4
—
2 %
Totals may not sum due to rounding
Average loans increased $3.2 billion compared to the second quarter of 2025. Average commercial loans increased $3.4 billion, driven by growth in the commercial and industrial portfolio of $4.3 billion partially offset by a decline in commercial real estate loans of $1.0 billion. Average consumer loans were stable as growth, primarily in the auto and credit card loan portfolio, was offset by lower residential mortgage loans.
In comparison to the third quarter of 2024, average loans increased $6.3 billion. Average commercial loans increased $7.8 billion primarily due to strong growth in commercial and industrial loans, partially offset by lower commercial real estate loans. Average consumer loans decreased $1.4 billion primarily due to lower residential mortgage loans, partially offset by growth in the auto loan portfolio.
Loans at September 30, 2025 increased $0.3 billion and $5.2 billion from June 30, 2025 and September 30, 2024, respectively. In both comparisons, the increase was due to growth in commercial and industrial loans, partially offset by lower commercial real estate loans.
Average Investment Securities
Change
Change
3Q25 vs
3Q25 vs
In billions
3Q25
2Q25
3Q24
2Q25
3Q24
Available for sale
$ 69.8
$ 67.8
$ 56.2
3 %
24 %
Held to maturity
74.6
74.2
86.1
1 %
(13) %
Total
$ 144.4
$ 141.9
$ 142.3
2 %
1 %
Totals may not sum due to rounding
Average investment securities of $144.4 billion in the third quarter of 2025 increased $2.5 billion compared to the second quarter of 2025 and $2.1 billion compared to the third quarter of 2024. In both comparisons, the increase reflected net purchase activity, primarily of agency residential mortgage-backed securities.
The duration of the investment securities portfolio was 3.4 years as of September 30, 2025 and June 30, 2025 and 3.3 years as of September 30, 2024. Net unrealized losses on available-for-sale securities were $2.1 billion at September 30, 2025, $2.6 billion at June 30, 2025 and $2.3 billion at September 30, 2024.
Average Federal Reserve Bank balances for the third quarter of 2025 were $34.2 billion, increasing $3.4 billion from the second quarter of 2025 and decreasing $10.7 billion from the third quarter of 2024. In comparison to the second quarter of 2025, the increase was driven by deposit growth. Compared to the third quarter of 2024, the decline reflected lower borrowed funds outstanding.
Average Deposits
Change
