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PNC Financial Beats Q1 Earnings on Higher NII After FirstBank Deal
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Key Takeaways
PNC Financial posted Q1 EPS of $4.32, beating estimates on higher NII, NIM expansion and loan growth.
Revenues rose 13% to $6.2B as the FirstBank deal and lower funding costs boosted net interest income.
Loans and deposits climbed post-acquisition, while higher expenses weighed on the results.
The PNC Financial Services Group, Inc. (PNC - Free Report) has delivered adjusted earnings per share of $4.32 in the first quarter of 2026, beating the Zacks Consensus Estimate of $4.12 and up from $3.51 a year ago.
Results reflected higher net interest income (NII), a rise in the net interest margin (NIM), and strong loan and deposit growth, aided by the FirstBank acquisition (completed in January 2026). However, higher expenses were headwinds.
Results excluded certain non-recurring charges. After considering those, net income (GAAP basis) was $1.77 billion, which rose 18.2% from the year-ago quarter.
PNC Financial’s Revenues & Expenses Rise
Quarterly revenue came in at $6.2 billion, up 13% year over year while missing the consensus mark by 0.5%.
NII rose to $4 billion in the quarter, increasing nearly 14% from the year-ago period. PNC’s NIM improved to 2.95%, expanding 17 basis points year over year, as the bank benefited from lower funding costs and loan growth.
Non-interest income totaled $2.2 billion, up 11.5% from the first quarter of 2025, reflecting broader improvement across several fee categories. Within fee income lines, capital markets and advisory revenues rose sharply from last year, while residential and commercial mortgage revenues declined year over year.
Non-interest expenses increased to $3.8 billion, up 11.2% year over year. The rise largely reflected FirstBank’s operating and integration expenses, increased business activity, and continued investments to support growth. PNC incurred $98 million of integration costs (pre-tax) in the quarter related to the FirstBank acquisition, and management noted that expense growth was notably more modest, excluding integration expenses.
The efficiency ratio was 61% compared with 62% in the prior-year quarter.
PNC's Loan & Deposit Balance Rises
The balance sheet expansion was notable following the closure of the FirstBank deal. Total loans increased 8.9% sequentially to $360.9 billion, while total deposits climbed 3.8% sequentially to $457.6 billion, aided by acquired balances.
PNC’s Credit Quality Remained Solid
Total non-performing loans were $2.24 billion, down 2.1% from the year-ago quarter.
Net loan charge-offs were $253 million, up 23.4% from the year-ago quarter. These included $45 million in acquired net loan charge-offs related to certain FirstBank loans. Excluding acquired net loan charge-offs, net charge-offs were $208 million.
The company reported a provision for credit losses of $210 million in the first quarter, down 4.1% from the year-ago quarter. The allowance for credit losses increased to $5.5 billion from $5.22 billion as of March 31, 2025. The allowance for credit losses to total loans ratio was 1.52% compared with 1.64% in the year-ago quarter.
PNC’s Capital Position & Profitability Ratios
As of March 31, 2026, the Basel III common equity tier 1 capital ratio was 10.1% compared with 10.6% as of March 31, 2025.
Return on average assets and average common shareholders’ equity were 1.19% and 11.92%, respectively, compared with 1.09% and 11.60% in the year-ago quarter.
PNC’s Capital Return Stayed Robust
In the first quarter of 2026, PNC returned $1.4 billion of capital to shareholders. This included $0.7 billion in common stock dividends and $0.7 billion in common share repurchases. Share repurchase activity in the second quarter of 2026 is expected to be $600-$700 million.
PNC Financial’s Guidance
For the second quarter of 2026, PNC expects average loans to rise 2% to 3% from the first-quarter baseline.
NII is expected to rise 3% and total revenues are likely to grow 3.5% sequentially in the second quarter of 2026.
For 2026, the company raised its average loan growth outlook to about 11% from nearly 8% growth mentioned previously.
The company also lifted its 2026 NII growth view to 14.5% (from the 14% previously stated), while reiterating expectations for total revenues of 11%.
Our View on PNC
PNC Financial’s higher NII, expanding NIM, and solid loan and deposit growth, will likely continue supporting the top-line performance. The company’s strong capital position also provides room for steady shareholder returns.
In January 2026, PNC completed the acquisition of FirstBank Holding Company and its banking subsidiary, FirstBank, adding 95 branches and $26.8 billion in assets. This transaction more than tripled PNC’s branch footprint in Colorado and expanded its Arizona presence to above 70 branches, positioning the company for enhanced long-term growth. However, elevated expenses tied to integration and higher credit costs remain near-term headwinds.
The PNC Financial Services Group, Inc Price, Consensus and EPS Surprise
Fifth Third Bancorp (FITB - Free Report) is scheduled to release first-quarter 2026 earnings on April 17. The consensus estimate for FITB’s quarterly earnings has been revised downward to 84 cents per share over the past seven days. This indicates a rise of 15.1% from the year-ago reported level.
Huntington Bancshares Inc. (HBAN - Free Report) is slated to report first-quarter 2026 results on April 23. Over the past seven days, the Zacks Consensus Estimate for HBAN’s quarterly earnings has been unchanged at 36 cents per share. This indicates a rise of 5.9% rise from the year-ago reported level.
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PNC Financial Beats Q1 Earnings on Higher NII After FirstBank Deal
Key Takeaways
The PNC Financial Services Group, Inc. (PNC - Free Report) has delivered adjusted earnings per share of $4.32 in the first quarter of 2026, beating the Zacks Consensus Estimate of $4.12 and up from $3.51 a year ago.
Results reflected higher net interest income (NII), a rise in the net interest margin (NIM), and strong loan and deposit growth, aided by the FirstBank acquisition (completed in January 2026). However, higher expenses were headwinds.
Results excluded certain non-recurring charges. After considering those, net income (GAAP basis) was $1.77 billion, which rose 18.2% from the year-ago quarter.
PNC Financial’s Revenues & Expenses Rise
Quarterly revenue came in at $6.2 billion, up 13% year over year while missing the consensus mark by 0.5%.
NII rose to $4 billion in the quarter, increasing nearly 14% from the year-ago period. PNC’s NIM improved to 2.95%, expanding 17 basis points year over year, as the bank benefited from lower funding costs and loan growth.
Non-interest income totaled $2.2 billion, up 11.5% from the first quarter of 2025, reflecting broader improvement across several fee categories. Within fee income lines, capital markets and advisory revenues rose sharply from last year, while residential and commercial mortgage revenues declined year over year.
Non-interest expenses increased to $3.8 billion, up 11.2% year over year. The rise largely reflected FirstBank’s operating and integration expenses, increased business activity, and continued investments to support growth. PNC incurred $98 million of integration costs (pre-tax) in the quarter related to the FirstBank acquisition, and management noted that expense growth was notably more modest, excluding integration expenses.
The efficiency ratio was 61% compared with 62% in the prior-year quarter.
PNC's Loan & Deposit Balance Rises
The balance sheet expansion was notable following the closure of the FirstBank deal. Total loans increased 8.9% sequentially to $360.9 billion, while total deposits climbed 3.8% sequentially to $457.6 billion, aided by acquired balances.
PNC’s Credit Quality Remained Solid
Total non-performing loans were $2.24 billion, down 2.1% from the year-ago quarter.
Net loan charge-offs were $253 million, up 23.4% from the year-ago quarter. These included $45 million in acquired net loan charge-offs related to certain FirstBank loans. Excluding acquired net loan charge-offs, net charge-offs were $208 million.
The company reported a provision for credit losses of $210 million in the first quarter, down 4.1% from the year-ago quarter. The allowance for credit losses increased to $5.5 billion from $5.22 billion as of March 31, 2025. The allowance for credit losses to total loans ratio was 1.52% compared with 1.64% in the year-ago quarter.
PNC’s Capital Position & Profitability Ratios
As of March 31, 2026, the Basel III common equity tier 1 capital ratio was 10.1% compared with 10.6% as of March 31, 2025.
Return on average assets and average common shareholders’ equity were 1.19% and 11.92%, respectively, compared with 1.09% and 11.60% in the year-ago quarter.
PNC’s Capital Return Stayed Robust
In the first quarter of 2026, PNC returned $1.4 billion of capital to shareholders. This included $0.7 billion in common stock dividends and $0.7 billion in common share repurchases. Share repurchase activity in the second quarter of 2026 is expected to be $600-$700 million.
PNC Financial’s Guidance
For the second quarter of 2026, PNC expects average loans to rise 2% to 3% from the first-quarter baseline.
NII is expected to rise 3% and total revenues are likely to grow 3.5% sequentially in the second quarter of 2026.
For 2026, the company raised its average loan growth outlook to about 11% from nearly 8% growth mentioned previously.
The company also lifted its 2026 NII growth view to 14.5% (from the 14% previously stated), while reiterating expectations for total revenues of 11%.
Our View on PNC
PNC Financial’s higher NII, expanding NIM, and solid loan and deposit growth, will likely continue supporting the top-line performance. The company’s strong capital position also provides room for steady shareholder returns.
In January 2026, PNC completed the acquisition of FirstBank Holding Company and its banking subsidiary, FirstBank, adding 95 branches and $26.8 billion in assets. This transaction more than tripled PNC’s branch footprint in Colorado and expanded its Arizona presence to above 70 branches, positioning the company for enhanced long-term growth. However, elevated expenses tied to integration and higher credit costs remain near-term headwinds.
The PNC Financial Services Group, Inc Price, Consensus and EPS Surprise
The PNC Financial Services Group, Inc price-consensus-eps-surprise-chart | The PNC Financial Services Group, Inc Quote
Currently, PNC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Dates & Expectations of Other Banks
Fifth Third Bancorp (FITB - Free Report) is scheduled to release first-quarter 2026 earnings on April 17. The consensus estimate for FITB’s quarterly earnings has been revised downward to 84 cents per share over the past seven days. This indicates a rise of 15.1% from the year-ago reported level.
Huntington Bancshares Inc. (HBAN - Free Report) is slated to report first-quarter 2026 results on April 23. Over the past seven days, the Zacks Consensus Estimate for HBAN’s quarterly earnings has been unchanged at 36 cents per share. This indicates a rise of 5.9% rise from the year-ago reported level.