PNC FINANCIAL SERVICES GROUP, INC.PNC
PNC FINANCIAL SERVICES GROUP, INC. Leases Disclosure
LEASES
PNC enters into both lessor and lessee arrangements. For more information on lease accounting, see Note 1 Accounting Policies. For additional details on our equipment lease financing receivables, see Note 3 Loans and Related Allowance for Credit Losses.
Lessor Arrangements
PNC’s lessor arrangements primarily consist of direct financing, sales-type and operating leases for equipment. Lease agreements may include options to renew and for the lessee to purchase the leased equipment at the end of the lease term.
The following table provides details on our income from lessor arrangements:
Table 64: Lessor Income
| Year ended December 31 | ||||||||||||||||||||
| In millions | 2025 | 2024 | 2023 | |||||||||||||||||
| Sales-type and direct financing leases (a) | $ | 350 | $ | 355 | $ | 300 | ||||||||||||||
| Operating leases (b) | 33 | 26 | 46 | |||||||||||||||||
| Lease income | $ | 383 | $ | 381 | $ | 346 | ||||||||||||||
(a)Included in Loans interest income on the Consolidated Income Statement.
(b)Included in noninterest income on the Consolidated Income Statement.
The following table provides the components of our equipment lease financing assets:
Table 65: Sales-Type and Direct Financing Leases
| In millions | December 31, 2025 | December 31, 2024 | ||||||||||||
| Lease receivables | $ | 6,637 | $ | 6,229 | ||||||||||
| Unguaranteed residual asset values (a) | 1,449 | 1,395 | ||||||||||||
| Unearned income | (911) | (869) | ||||||||||||
| Equipment lease financing | $ | 7,175 | $ | 6,755 | ||||||||||
(a)In certain cases, PNC obtains third-party residual value insurance to reduce its residual risk. The carrying value of residual assets with third-party residual value insurance for at least a portion of the asset value was $0.6 billion at both December 31, 2025 and 2024.
Operating lease assets were $0.3 billion and accumulated depreciation was $0.2 billion at December 31, 2025, compared to operating lease assets of $0.4 billion and accumulated depreciation of $0.2 billion at December 31, 2024. We had no lease transactions with related parties or deferred selling profits at December 31, 2025 and 2024.
The future minimum lessor receivable arrangements at December 31, 2025 were as follows:
Table 66: Future Minimum Lessor Receivable Arrangements
| In millions | Operating Leases | Sales-type and Direct Financing Leases | ||||||||||||
| 2026 | $ | 28 | $ | 1,706 | ||||||||||
| 2027 | 25 | 1,678 | ||||||||||||
| 2028 | 16 | 1,178 | ||||||||||||
| 2029 | 12 | 826 | ||||||||||||
| 2030 | 8 | 733 | ||||||||||||
| 2031 and thereafter | 3 | 516 | ||||||||||||
| Total future minimum lease receivable arrangements | $ | 92 | $ | 6,637 | ||||||||||
Lessee Arrangements
We lease retail branches, datacenters, office space, land and equipment under operating and finance leases. Our leases have remaining lease terms of 1 year to 42, some of which may include options to renew the leases for up to 99 years, and some of which may include options to terminate the leases prior to the end date of the lease term. Certain leases also include options to purchase the leased asset. The exercise of lease renewal, termination and purchase options is at our sole discretion.
Certain of our lease agreements include rental payments based on a percentage of revenue and others include rental payments if certain bank deposit levels are met. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Subleases to third parties were not material at December 31, 2025 and 2024.
Tables 67 and 68 provide details on our operating leases:
Table 67: Operating Lease Costs and Cash Flows
| Year ended December 31 | ||||||||||||||||||||
| In millions | 2025 | 2024 | 2023 | |||||||||||||||||
| Operating lease cost (a) | $ | 366 | $ | 373 | $ | 386 | ||||||||||||||
| Operating cash flows | $ | 396 | $ | 413 | $ | 440 | ||||||||||||||
(a)Included in Occupancy, Equipment and Marketing expense on our Consolidated Income Statement.
Table 68: Operating Lease Assets and Liabilities
| In millions | December 31, 2025 | December 31, 2024 | ||||||||||||
| $ | 1,692 | $ | 1,619 | |||||||||||
| $ | 1,933 | $ | 1,870 | |||||||||||
(a)Included in Other assets on our Consolidated Balance Sheet.
(b)Included in Accrued expenses and other liabilities on our Consolidated Balance Sheet.
Finance lease assets and liabilities, income, expense and cash flows at December 31, 2025 and 2024 were not material.
Operating lease term and discount rates of our lessee arrangements at December 31, 2025 and 2024 were as follows:
Table 69: Operating Lease Term and Discount Rates of Lessee Arrangements
| December 31, 2025 | December 31, 2024 | |||||||||||||
| Weighted-average remaining lease term (years) | 7 | 7 | ||||||||||||
| Weighted-average discount rate | 3.08 | % | 2.76 | % | ||||||||||
The future lease payments based on maturity for our lessee liability arrangements at December 31, 2025 are as follows:
Table 70: Future Lease Payments for Operating Lease Liability Arrangements
| In millions | December 31, 2025 | |||||||
| 2026 | $ | 393 | ||||||
| 2027 | 369 | |||||||
| 2028 | 327 | |||||||
| 2029 | 265 | |||||||
| 2030 | 211 | |||||||
| 2031 and thereafter | 601 | |||||||
| Total future lease payments | $ | 2,166 | ||||||
| Less: Interest | 233 | |||||||
| Present value of operating lease liability arrangements | $ | 1,933 | ||||||
Additionally, as of December 31, 2025, PNC had future operating lease commitments of $318 million that were signed but had not yet commenced. These operating leases will commence between 2026 and 2027 with lease terms up to 12 years.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 21, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Feb 29, 2016 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.