April 15 - PNC Financial reported an 18% increase in first-quarter profit, driven by the integration of regional lender FirstBank and broad-based loan growth, the bank said on Wednesday. The deal, completed in January for $4.1 billion, added $26 billion in assets and strengthened PNC's footprint in Colorado and Arizona.
PNC said loan demand has recently increased across the industry as a series of U.S. Federal Reserve rate cuts encouraged customers to take on more debt. For PNC, net interest income - the spread between interest earned on loans and interest paid on deposits - rose 14% year-over-year to $3.96 billion for the quarter, reflecting the impact of the FirstBank acquisition, growth in commercial lending and lower costs for deposits.
Net interest margin, a primary gauge of lending profitability, widened by 17 basis points to 2.95% in the quarter. Total loans at PNC grew 13% from the prior year to $360.9 billion.
Commenting on the quarter, PNC CEO Bill Demchak said, "2026 is off to a great start for PNC. During the first quarter, we... generated strong legacy loan growth. Client activity remains robust across all our geographies," highlighting the bank's geographic diversification and loan performance.
Fee income also contributed to the quarter's results, rising 13% compared with a year earlier and reflecting broad-based growth across PNC's business lines. Revenue from capital markets and advisory activities surged 51% to $463 million, a gain PNC attributed to stronger dealmaking and trading activity.
PNC reported quarterly net income of $1.77 billion, or $4.13 per share, up from $1.50 billion, or $3.51 per share, in the year-ago quarter. Excluding costs related to integrating FirstBank, the bank recorded an adjusted earnings per share figure of $4.32 for the quarter.
The bank continued its buyback program, with nearly $700 million of stock repurchases completed in the three months ended March 31. PNC said it expects buybacks of roughly $600 million to $700 million in the second quarter.
PNC's stock has risen about 6% thus far this year. The results underline the immediate financial impact of the FirstBank acquisition as well as momentum in lending and fee-based businesses that supported the quarter's performance.
Key points
- PNC's first-quarter profit rose 18% to $1.77 billion, or $4.13 per share.
- Net interest income increased 14% to $3.96 billion; net interest margin expanded 17 basis points to 2.95%.
- Acquisition of FirstBank for $4.1 billion added $26 billion in assets and supported loan growth; total loans rose 13% to $360.9 billion.
Sectors impacted: Banking, commercial lending, capital markets and advisory, deposit services.
Risks and uncertainties
- Integration costs related to the FirstBank acquisition reduced headline results; adjusted earnings exclude those integration expenses, indicating integration-related costs can affect reported profitability - impacting the banking sector.
- Buyback plans are subject to change; while PNC completed nearly $700 million in repurchases and expects $600 million to $700 million in the next quarter, actual buybacks could differ, influencing investor returns and bank capital allocation.
- Loan demand appears linked to recent Fed rate cuts; changes in interest rate policy or customer borrowing behavior could alter lending growth trajectories and revenue - affecting commercial lending and deposit businesses.