PNC Financial $PNC Services Group reported record quarterly revenue of $6.88 billion on Wednesday, up 21% from a year earlier, as surging capital markets activity and the addition of FirstBank drove broad gains across the business.
Net income for the second quarter came in at $2.06 billion, or $4.81 per diluted share, a 25% increase from the same period a year ago. On an adjusted basis, which excludes FirstBank integration costs and other one-time items, diluted earnings per share were $4.85, compared with $3.85 a year earlier, the company said.
Capital markets and advisory revenue rose to $577 million, up 80% from last year, thanks to record M&A advisory fees and strong results in other capital markets areas. Total fee income was $2.28 billion, a 20% increase from the second quarter of 2025.
Net interest income totaled $4.11 billion, a 16% year-over-year increase, reflecting contributions from commercial loan growth, the FirstBank deal and a decline in deposit costs. Net interest margin expanded 16 basis points year over year to 2.96%.
Average loans totaled $363.2 billion, up 13% from a year earlier, and average deposits climbed 8% to $457 billion, the company said.
PNC completed its $4.1 billion acquisition of Colorado- and Arizona-based FirstBank in January, according to Reuters. As of June 22, PNC converted approximately 780,000 customers, more than 1,620 employees and 95 branches, merging FirstBank into PNC Bank, the company said.
The quarter included several notable one-time items. PNC recorded a $448 million gain tied to a partial exchange of its Visa $V Class B-2 holdings. Working against that gain were a $140 million charitable contribution to the PNC Foundation, a $139 million charge stemming from the sale of approximately $4 billion in investment securities that were rotated into higher-yielding alternatives, and $85 million in negative fair value adjustments on Visa Class B-3 derivative positions. The combined impact reduced net income by $15 million, or 4 cents per share, the company said.
Credit quality remained stable. Net loan charge-offs were $226 million, or 0.25% of average loans on an annualized basis, while nonperforming loans fell 10% from the prior quarter to $2.03 billion.
PNC's board raised the quarterly common stock dividend 18% to $2.00 per share, payable August 5 to shareholders of record as of July 20. The company returned $1.3 billion to shareholders during the quarter, including $0.6 billion in share repurchases.
"Our strong second quarter performance reflects the disciplined execution of our growth strategy and positions us well for the second half of the year," PNC Chairman and Chief Executive Officer William Demchak said in a statement.