PNC FINANCIAL SERVICES GROUP, INC.PNC

PNC FINANCIAL SERVICES GROUP, INC. Commitments Disclosure

10-KFiled Feb 21, 20253 min read
COMMITMENTS
In the normal course of business, we have various commitments outstanding, certain of which are not included on our Consolidated Balance Sheet. The following table presents our outstanding commitments to extend credit along with other commitments as of December 31, 2024 and 2023.

Table 79: Commitments to Extend Credit and Other Commitments
In millionsDecember 31, 2024December 31, 2023
Commitments to extend credit
Commercial$209,864 $203,080 
Home equity 24,086 23,970 
Credit card36,447 33,978 
Other7,388 7,363 
Total commitments to extend credit277,785 268,391 
Net outstanding standby letters of credit (a)11,251 10,913 
Standby bond purchase agreements (b)1,095 1,078 
Other commitments (c)4,969 4,386 
Total commitments to extend credit and other commitments$295,100 $284,768 
(a)Net outstanding standby letters of credit that support remarketing programs were $3.7 billion and $3.9 billion at December 31, 2024 and 2023, respectively.
(b)We enter into standby bond purchase agreements to support municipal bond obligations.
(c)Includes $2.2 billion and $2.1 billion related to investments in qualified affordable housing projects at December 31, 2024 and 2023, respectively.

Commitments to Extend Credit
Commitments to extend credit, or net unfunded loan commitments, represent arrangements to lend funds or provide liquidity subject to specified contractual conditions. These commitments generally have fixed expiration dates, may require payment of a fee and generally contain termination clauses in the event the customer’s credit quality deteriorates.
Net Outstanding Standby Letters of Credit
We issue standby letters of credit and share in the risk of standby letters of credit issued by other financial institutions, in each case to support obligations of our customers to third parties, such as insurance requirements and the facilitation of transactions involving capital markets product execution. Approximately 97% of our net outstanding standby letters of credit were rated as Pass at December 31, 2024, with the remainder rated as Criticized. An internal credit rating of Pass indicates the expected risk of loss is currently low, while a rating of Criticized indicates a higher degree of risk.
If the customer fails to meet its financial or performance obligation to the third party under the terms of the contract or there is a need to support a remarketing program, then upon a draw by a beneficiary, subject to the terms of the letter of credit, we would be obligated to make payment to them. The standby letters of credit outstanding on December 31, 2024 had terms ranging from less than one year to seven years.
As of December 31, 2024, assets of $1.0 billion secured certain specifically identified standby letters of credit. In addition, a portion of the remaining standby letters of credit issued on behalf of specific customers was also secured by collateral or guarantees that secure the customers’ other obligations to us. The carrying amount of the liability for our obligations related to standby letters of credit and participations in standby letters of credit was $0.2 billion at December 31, 2024 and is included in Other liabilities on our Consolidated Balance Sheet.

Historical Timeline

Fiscal YearFiled
2024Feb 21, 2025Showing above
2023Feb 21, 2024
2022Feb 22, 2023
2021Feb 25, 2022
2020Feb 26, 2021
2019Mar 2, 2020
2018Mar 1, 2019
2017Feb 28, 2018
2016Feb 28, 2017
2015Feb 29, 2016

About Commitments Disclosures

Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.

Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.

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