How did the FirstBank acquisition affect PNC's first-quarter 2026 results?

The FirstBank acquisition closed on January 5, 2026 and drove much of the balance sheet growth: average loans rose 7% linked quarter and average deposits rose 4%. It also brought about $98 million of integration costs in the quarter, which PNC excluded from its adjusted EPS of $4.32. Management expects roughly $325 million of total integration expense for 2026, mostly in the first half.

Why did GAAP EPS decline linked quarter even though revenue grew?

Diluted EPS fell to $4.13 from about $4.88 in the fourth quarter, a 15% decline, despite total revenue rising 2% to $6,165 million. Noninterest expense rose 5% to $3,768 million, including integration costs, and the provision for credit losses increased 51% to $210 million, with higher income taxes also weighing on net income.

Is PNC's capital position still strong after the acquisition and buybacks?

PNC's estimated CET1 ratio fell 50 bps to 10.1%, reflecting acquisition-related balance sheet growth and $1.4 billion of shareholder returns. Tangible book value per share declined 3% to $109.42. Capital levels remain above regulatory minimums, but future buybacks are subject to meeting stress capital buffer requirements under the Federal Reserve's CCAR process.

What is the outlook for the second quarter and full year 2026?

For 2Q26, PNC guides to average loan growth of 2% to 3%, net interest income up about 3%, fee income up about 2.5%, and noninterest expense (ex. integration) up about 2%, with net charge-offs near $225 million. For full-year 2026, it raised average loan growth to about 11% and net interest income growth to about 14.5%, while keeping total revenue growth near 11% and the effective tax rate near 19.5%.

What are the main credit risks investors should watch?

Net charge-offs rose to 0.29% of average loans in 1Q26 from 0.20% in 4Q25, although PNC noted that acquired charge-offs accounted for $45 million. Non-depository financial institution (NDFI) loans total $73 billion, about 20% of loans, though roughly 90% are rated investment grade. Management also cites an extended Iran conflict, higher energy prices, and a possible Federal Reserve rate move as risks to its baseline outlook.

PNC 8-K: Regulation FD — Apr 15, 2026

01—Abstract

Summary

Summary of the 8-K filed April 15, 2026. Cited figures are marked; the original filing is the authoritative source.

PNC Financial Services Group's Form 8-K furnishes the slides used on its April 15, 2026 first-quarter 2026 earnings call (Item 7.01 / Exhibit 99.1).

The headline story is a larger, FirstBank-driven balance sheet: average loans rose 7% linked quarter and 11% year over year to $350.9 billion^a, and deposits grew 4% linked quarter to $458.4 billion after the FirstBank acquisition closed on January 5, 2026. Net interest income reached $3,961 million (up 6% LQ, 14% YoY) and the net interest margin expanded to 2.95%. GAAP net income was $1.77 billion and diluted EPS $4.13, down 15% linked quarter but up 18% year over year; adjusted diluted EPS excluding $98 million of integration costs was $4.32 (non-GAAP).

Credit quality looks stable on the headline metrics: nonperforming loans fell to 0.62% of total loans from 0.67%, though net charge-offs rose to 0.29% of average loans (0.24% excluding $45 million^b of acquired charge-offs). The Basel III CET1 ratio declined 50 bps to an estimated 10.1% as the company returned $1.4 billion to shareholders, including $0.7 billion of buybacks, and tangible book value per share fell 3% linked quarter to $109.42 amid the acquisition-related share issuance and AOCI losses. Forward guidance points to continued growth: for 2Q26, PNC expects average loans up 2% to 3%, net interest income up about 3%, and net charge-offs near $225 million.

For full-year 2026, management raised average loan growth expectations to about 11% (from about 8%) and net interest income growth to about 14.5% (from about 14%), while keeping total revenue growth near 11% and noninterest expense growth near 7% excluding roughly $325 million^c of integration expense. The baseline macro outlook assumes the Federal Reserve holds rates at 3.50%-3.75% through 2027, with an extended Iran conflict and energy prices flagged as key risks.

02—Key points

Key Highlights

Average loans of $350.9 billion, up 7% linked quarter and 11% year over year, driven by FirstBank acquisition and legacy C&I growth (+6% LQ, +15% YoY)
Net interest income of $3,961 million (+6% LQ, +14% YoY); net interest margin expanded to 2.95% from 2.84% in 4Q25
GAAP diluted EPS of $4.13 (down 15% LQ, up 18% YoY); adjusted diluted EPS of $4.32 excluding $98 million of integration costs (non-GAAP)
Credit quality stable: NPLs fell to 0.62% of total loans from 0.67% LQ, though NCOs rose to 0.29% of average loans from 0.20%
CET1 ratio declined 50 bps to an estimated 10.1%; $1.4 billion returned to shareholders, including $0.7 billion of share repurchases
Raised FY26 average loan growth outlook to ~11% (from ~8%) and net interest income growth to ~14.5% (from ~14%), including FirstBank
Tangible book value per common share fell 3% LQ to $109.42, while the company's equity base grew to $57.4 billion on average

03—Questions

Frequently Asked Questions

How did the FirstBank acquisition affect PNC's first-quarter 2026 results?
The FirstBank acquisition closed on January 5, 2026 and drove much of the balance sheet growth: average loans rose 7% linked quarter and average deposits rose 4%. It also brought about $98 million of integration costs in the quarter, which PNC excluded from its adjusted EPS of $4.32. Management expects roughly $325 million of total integration expense for 2026, mostly in the first half.
Why did GAAP EPS decline linked quarter even though revenue grew?
Diluted EPS fell to $4.13 from about $4.88 in the fourth quarter, a 15% decline, despite total revenue rising 2% to $6,165 million. Noninterest expense rose 5% to $3,768 million, including integration costs, and the provision for credit losses increased 51% to $210 million, with higher income taxes also weighing on net income.
Is PNC's capital position still strong after the acquisition and buybacks?
PNC's estimated CET1 ratio fell 50 bps to 10.1%, reflecting acquisition-related balance sheet growth and $1.4 billion of shareholder returns. Tangible book value per share declined 3% to $109.42. Capital levels remain above regulatory minimums, but future buybacks are subject to meeting stress capital buffer requirements under the Federal Reserve's CCAR process.
What is the outlook for the second quarter and full year 2026?
For 2Q26, PNC guides to average loan growth of 2% to 3%, net interest income up about 3%, fee income up about 2.5%, and noninterest expense (ex. integration) up about 2%, with net charge-offs near $225 million. For full-year 2026, it raised average loan growth to about 11% and net interest income growth to about 14.5%, while keeping total revenue growth near 11% and the effective tax rate near 19.5%.
What are the main credit risks investors should watch?
Net charge-offs rose to 0.29% of average loans in 1Q26 from 0.20% in 4Q25, although PNC noted that acquired charge-offs accounted for $45 million. Non-depository financial institution (NDFI) loans total $73 billion, about 20% of loans, though roughly 90% are rated investment grade. Management also cites an extended Iran conflict, higher energy prices, and a possible Federal Reserve rate move as risks to its baseline outlook.

04—Continue

← View all 8-K filings