PNC, M&T post solid Q1 2026 bank earnings

The PNC Financial Services Group reported first-quarter 2026 net income of $1.8 billion and diluted earnings per share of $4.13. Adjusted diluted EPS, excluding FirstBank integration costs, was $4.32. Revenue rose 2% from the fourth quarter of 2025 to $6.17 billion, supported by higher net interest income.

Net interest income reached $3.96 billion, up 6% quarter over quarter and 14% year over year, reflecting the benefit of the FirstBank acquisition, lower funding costs and commercial loan growth. Net interest margin increased to 2.95%, 11 basis points higher than in the previous quarter.

Noninterest income totaled $2.20 billion, down 6% from the prior quarter but up 12% from a year earlier. Fee income of $2.08 billion declined 2% sequentially, pressured by lower residential and commercial mortgage revenue tied to mortgage servicing rights valuation, but showed broad-based growth versus the prior year.

PNC completed its acquisition of FirstBank Holding Company on January 5, 2026. At closing, FirstBank had $26 billion of assets, $16 billion of loans and $23 billion of deposits, which are now consolidated into PNC’s results.

Integration costs in the quarter totaled $98 million pre-tax. Excluding these, pretax pre-provision earnings were $2.50 billion, slightly above the prior quarter. Noninterest expense increased 5% to $3.77 billion, or 2% excluding integration costs, mainly due to FirstBank operating expenses.

Average loans rose 7% from the fourth quarter of 2025 to $350.9 billion, driven by acquired FirstBank loans and commercial growth. Average deposits increased 4% to $458.4 billion, reflecting added FirstBank deposits and lower brokered time deposits.

PNC reported $253 million of net loan charge-offs, including $45 million of acquired charge-offs related to purchase accounting for certain FirstBank loans. The allowance for credit losses increased to $5.5 billion, with the allowance-to-total-loans ratio at 1.52%.

PNC’s estimated common equity tier 1 capital ratio was 10.1% at March 31, 2026, compared with 10.6% at year-end 2025. The bank returned $1.4 billion of capital to shareholders in the quarter, split evenly between common dividends and share repurchases. The board declared a quarterly common dividend of $1.70 per share payable May 5, 2026.

Credit quality metrics showed total nonperforming loans at $2.24 billion, essentially flat versus year-end, while total delinquencies increased to $1.56 billion, largely due to the addition of FirstBank loans. Net charge-offs to average loans annualized were 0.29%.

Retail Banking earnings climbed to $1.32 billion, supported by higher net interest income and loan growth tied to FirstBank. Corporate & Institutional Banking earned $1.40 billion, with higher year-on-year loan balances and fee income from capital markets and treasury management. Asset Management Group reported earnings of $118 million, helped by higher equity markets and client assets.

M&T Bank Corporation reported first-quarter 2026 net income of $664 million, with diluted earnings per common share of $4.13. Net operating income, a non-GAAP measure that excludes amortization of certain intangibles, was $671 million, or $4.18 per diluted share.

Taxable-equivalent net interest income was $1.76 billion, down 2% from the prior quarter but up 3% from a year earlier. Net interest margin widened by 2 basis points quarter over quarter to 3.71%, as funding costs fell faster than yields on earning assets.

Average earning assets were $192.6 billion, essentially flat sequentially but up 2% year over year. Loan growth was led by commercial and industrial balances, partly offset by lower commercial real estate and consumer loans. Average investment securities increased, while interest-bearing deposits at banks declined as liquidity was redeployed.

Noninterest income was $689 million, slightly below the fourth quarter but 13% higher than a year earlier. Results reflected M&T’s January 1, 2026 election to measure residential mortgage servicing rights at fair value, lower gains on commercial mortgage loans held for sale, and a $33 million distribution from its investment in Bayview Lending Group LLC.

Noninterest expense rose 4% from the prior quarter to $1.44 billion. The increase included $115 million of seasonal salaries and employee benefits, partially offset by lower other operating costs after a $30 million charitable foundation contribution and mortgage servicing amortization in the prior quarter.

The provision for credit losses was $140 million, up from $125 million in the preceding quarter. The allowance for loan losses remained 1.53% of total loans, unchanged from December 31, 2025. Nonaccrual loans were $1.24 billion, down from $1.54 billion a year earlier, and net charge-offs equaled 0.31% of average loans on an annualized basis.

M&T’s estimated CET1 capital ratio was 10.33% at March 31, 2026. During the quarter, the bank repurchased 5.5 million common shares at a total cost of $1.25 billion. Cash dividends declared on common stock were $1.50 per share.

The company reported that its estimated liquidity coverage ratio was 107% at March 31, 2026. An accounting election to measure mortgage servicing rights at fair value increased capitalized servicing assets by $263 million and retained earnings by $197 million on January 1, 2026, contributing approximately 8 basis points to CET1 at that time.

Chief Financial Officer Daryl N. Bible said M&T continued to return capital while investing in operations, and noted the successful conversion of the bank’s core general ledger platform completed shortly before the earnings release.