PNC announced it would be investing approximately $1.5 billion, over the next five years, to open more than 200 new branches in key locations, including Atlanta, Austin, Charlotte, Dallas, Denver, Houston, Miami, Orlando, Phoenix, Raleigh, San Antonio, and Tampa, while completing renovations of 1,400 existing locations across the country during the same time period to enhance the customer experience.

PNC strives to serve our customers and expand and deepen relationships by offering a broad range of deposit, credit and fee-based products and services. We are focused on delivering those products and services to our customers with the goal of addressing their financial objectives and needs.

PNC continues to enhance the customer experience with refinements to product and service offerings that drive value for consumers and small businesses. As part of our strategic focus on growing customers and meeting their financial needs, we operate and continue to optimize a coast-to-coast network of retail branches, solution centers and ATMs, which are complemented by PNC's suite of digital capabilities.

Common shareholders' equity of $50.7 billion at March 31, 2025 increased $2.0 billion compared to December 31, 2024, due to the benefit of net income and an improvement in AOCI, partially offset by common dividends paid and common share repurchases.

In the first quarter of 2025, PNC returned $0.8 billion of capital to shareholders, including $0.6 billion of dividends on common shares and $0.2 billion of common share repurchases.

Our CET1 ratio increased to 10.6% at March 31, 2025 from 10.5% at December 31, 2024.

The economic fundamentals remain solid in the spring of 2025. The labor market remains strong, and job and income gains have supported consumer spending growth in early 2025. However, downside risks have materially increased with recent substantial changes to U.S. tariffs and corresponding policy changes by U.S. trading partners.

Within the multi-tenant classification, criticized levels were 53.5% while nonperforming loans totaled 21.3%, accounting for almost all of the nonperforming office population. For multi-tenant office loans that received appraisals after March 31, 2024, the weighted average LTV for those loans was 85.2% at March 31, 2025.

PNC's ability to take certain capital actions, including returning capital to shareholders, is subject to PNC meeting or exceeding an SCB established by the Federal Reserve Board in connection with the Federal Reserve Board's CCAR process.

PNC is one of the largest diversified financial services companies in the U.S. and is headquartered in Pittsburgh, Pennsylvania.

Corporate & Institutional Banking's strategy is to be the leading relationship-based provider of traditional banking products and services to its customers through the economic cycles. We aim to grow our market share and drive higher returns by delivering value-added solutions that help our clients better run their organizations, all while maintaining prudent risk and expense management.

Retail Banking's core strategy is to build lifelong, primary relationships by creating a sense of financial well-being and ease for our clients. Over time, we seek to deepen those relationships by meeting the broad range of our clients' financial needs across savings, liquidity, lending, payments, investment and retirement solutions.

Noninterest expense decreased $119 million, or 3%, to $3.4 billion, reflecting asset impairments recognized in the fourth quarter of $97 million as well as seasonally lower other noninterest expense and marketing.

Total deposits decreased $3.8 billion, or 1%, to $422.9 billion, primarily due to lower interest-bearing deposits. The decrease in interest-bearing deposits was driven by lower commercial balances and brokered time deposits, partially offset by higher consumer balances.

Borrowed funds decreased $1.0 billion, or 2%, to $60.7 billion, due to lower FHLB advances, partially offset by parent company senior debt issuances in the first quarter of 2025.

Noninterest expense increased compared to the first three months of 2024 as a result of increased business activity, technology investments and higher marketing spend.

Retail Banking continues to enhance the customer experience with refinements to product and service offerings that drive value for consumers and small businesses. As part of our strategic focus on growing customers and meeting their financial needs, we operate and continue to optimize a coast-to-coast network of retail branches, solution centers and ATMs, which are complemented by PNC's suite of digital capabilities.

Noninterest expense increased in the comparison largely due to continued investments to support business growth and higher variable compensation associated with increased business activity.

In the first quarter of 2025, PNC returned $0.8 billion of capital to shareholders, including $0.6 billion of dividends on common shares and $0.2 billion of common share repurchases.

On April 3, 2025 the PNC Board of Directors declared a quarterly cash dividend on common stock of $1.60 per share to be paid on May 5, 2025 to shareholders of record at the close of business April 16, 2025.

Second quarter 2025 share repurchase activity is expected to increase as compared to recent quarterly average share repurchase levels. PNC may adjust share repurchase activity depending on market and economic conditions, as well as other factors.

Our reputation and business and operating results may be affected by our ability to appropriately meet or address environmental, social or governance targets, goals, commitments or concerns that may arise.

Includes $2.7 billion and $2.2 billion related to investments in qualified affordable housing projects at March 31, 2025 and December 31, 2024, respectively.

We make certain equity investments in various tax credit limited partnerships or LLCs. The purpose of these investments is to achieve a satisfactory return on capital and to assist us in achieving goals associated with the CRA.

PNC's baseline forecast remains for continued expansion, but slower economic growth in 2025 than in 2024. High interest rates remain a drag on the economy, consumer spending growth will slow to a pace more consistent with household income growth, and government's contribution to economic growth will be smaller.

The baseline forecast is for four federal funds rate cuts of 25 basis points each in 2025, starting in July. This would take the federal funds rate to a range between 3.25% and 3.50% at the end of 2025.

The economic fundamentals remain solid in the spring of 2025. The labor market remains strong, and job and income gains have supported consumer spending growth in early 2025.