PNC · 10-Q · 2026Q2 · Full report

Credit Loss Provisions

PNC FINANCIAL SERVICES GROUP, INC. · 2026-08-05 · Importance 37 · Surprise 32

PNC recorded a $191 million provision for credit losses in the second quarter of 2026 and $401 million in the first six months, with both periods driven by portfolio activity and updates to macroeconomic factors. The first-quarter provision was $210 million, making the second-quarter provision $19 million lower sequentially. The allowance for credit losses related to loans totaled $5.5 billion at June 30, 2026, up from $5.2 billion at December 31, 2025. Net loan charge-offs were $226 million, or 0.25% of average loans, down $27 million sequentially after $45 million of FirstBank acquired net charge-offs were recognized in the first quarter.

Key facts

• Allowance for unfunded lending related commitments at June 30, 2026: $5,461 million; at December 31, 2025: $5,228 million source
• Allowance for loans and lease losses for commercial and industrial at June 30, 2026: $2,219 million on total C&I loans $227,915 million (0.97%); December 31, 2025: $2,032 million on $202,898 million (1.00%) source
• Allowance for loans and lease losses for commercial real estate at June 30, 2026: $1,035 million on $35,962 million (2.88%); December 31, 2025: $1,057 million on $29,565 million (3.58%) source
• Total allowance for credit losses at June 30, 2026: $5,461 million (including unfunded commitments allowance), and allowance for loans and leases $4,652 million source
• Total net charge-offs increased $76 million, or 19%, for first six months of 2026 compared to same period in 2025; $45 million of the increase related to FirstBank acquisition purchase accounting and increase in C&I net charge-offs source
• Credit card loans at June 30, 2026: $7,311 million with allowance percent 8.85%; December 31, 2025: $7,014 million with allowance percent 9.01% source
• Allowance for credit losses (ACL) related to loans totaled $5,500 million at June 30, 2026 compared to $5,200 million at December 31, 2025 and ACL to total loans was 1.48% at June 30, 2026 compared to 1.58% at December 31, 2025 source
• Allowance for credit losses to total loans at June 30, 2026: 1.48%; at December 31, 2025: 1.58% source