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PITTSBURGH - On Wednesday, PNC Financial Services Group (NYSE:PNC) reported first quarter earnings that exceeded analyst expectations, though revenue fell short of estimates as the bank integrated its recent FirstBank acquisition.
The company’s stock was unchanged in pre-market trading following the results.
The bank posted adjusted earnings per share of $4.32 for the first quarter, excluding $98 million in pre-tax integration costs related to the FirstBank acquisition.
On a GAAP basis, diluted EPS came in at $4.13, beating the analyst consensus of $3.91 by $0.22. However, revenue of $6.17 billion missed the $6.24 billion analyst estimate, though it increased 13% YoY from $5.45 billion in the first quarter of 2025.
Net interest income rose 14% YoY to $3.96 billion, driven by the FirstBank acquisition, lower funding costs, and commercial loan growth.
The net interest margin expanded to 2.95%, up 17 basis points from 2.78% a year earlier. Average loans grew 11% YoY to $350.9 billion, while average deposits increased 9% to $458.4 billion.
"2026 is off to a great start for PNC," said Chairman and CEO Bill Demchak. "During the first quarter we successfully closed the FirstBank acquisition, and in addition, generated strong legacy loan growth."
PNC completed its acquisition of FirstBank on January 5, 2026, adding $26 billion in assets, $16 billion in loans, and $23 billion in deposits.
The bank incurred $98 million in integration costs during the quarter out of an expected total of $325 million.
Net loan charge-offs totaled $253 million, including $45 million related to acquired FirstBank loans. Excluding the FirstBank charge-offs, net loan charge-offs were $208 million, or 0.24% annualized.
The provision for credit losses was $210 million, reflecting loan growth and the FirstBank addition.
PNC returned $1.4 billion to shareholders through $700 million in share repurchases and $700 million in common stock dividends. The bank expects second quarter share repurchases of $600 million to $700 million.
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