> ## Content Index
> Fetch the complete content index at: https://www.bullished.co/llms.txt
> Use this file to discover other available public pages before exploring further.

# PNC's Nonperforming Office Loans Climb To 10.8% From 8.1% As Brokered Deposits Reach $8.6 Billion
- URL: https://www.bullished.co/pncs-nonperforming-office-loans-climb-to-10-8-from-8-1-as-brokered-deposits-reach-8-6-19971861/
- Published: 2026-11-03T20:21:09.000Z
- Updated: 2026-11-03T20:21:09.000Z
- Description: PNC's office book shifted from criticized toward nonperforming in one quarter, while borrowed funds rose 40% since year-end.
- Author: Matteo Parrino
- Tags: SEC Filings, PNC, Industry: Financials

The share of [PNC](https://www.bullished.co/tag/pnc/)'s office loans that are nonperforming reached [10.8% at September 30](https://www.sec.gov/Archives/edgar/data/0000713676/000162828026069377/pnc-20260930.htm?ref=bullished.co), up from 8.1% at June 30, according to the bank's quarterly report filed Tuesday. The bank, which describes its overall credit quality as strong, also leaned harder on brokered deposits, which total $8.6 billion.

## Office loans turn nonperforming

PNC, a bank holding company with retail, corporate and institutional, and asset management businesses, had $4.8 billion of office loans outstanding at September 30, or 1.3% of total loans, plus $0.5 billion of unfunded commitments.

The [prior quarter's filing](https://www.sec.gov/Archives/edgar/data/0000713676/000162828026053170/pnc-20260630.htm?ref=bullished.co) put nonperforming office loans at 8.1% and criticized loans at 29.4% of a $5.1 billion book. Criticized loans, a regulatory category for loans showing weakness, now total 27.9%, so the mix is moving from criticized toward outright nonperforming.

Reserves against office loans rose to 9.2% from 8.8%. Management says that level reflects the expected credit losses in the portfolio.

Office is 13% of commercial real estate loans, which total $37.0 billion, against 17% at December 31, 2025.

## Leaning on wholesale funding

Total brokered deposits, which banks buy through intermediaries, were $8.6 billion at September 30, including $7.6 billion of brokered time deposits. At December 31, 2025 the figures were $5.1 billion and $3.6 billion. Management says both balances sit well below internal and regulatory limits.

Borrowed funds rose $22.7 billion, or 40%, since year-end to $79.8 billion, mostly from higher Federal Home Loan Bank advances. PNC closed its FirstBank acquisition on January 5, 2026, and total loans are up 14% to $378.8 billion since year-end.

The common equity tier 1 capital ratio, a core measure of loss-absorbing capital, was 9.8%, down from 10.6% at year-end, mainly on higher risk-weighted assets, buybacks and dividends.

## Strong credit, one education-loan hit

Overall, nonperforming assets of $2.3 billion fell $36 million since year-end. Net loan charge-offs were $257 million for the quarter, including $35 million tied to moving the $1.4 billion education loan portfolio to held-for-sale.

Third-quarter net income was $2.1 billion, or $4.97 per diluted share. PNC's market value was $92.4 billion in Tuesday afternoon trading.

For the fourth quarter, PNC guides to net loan charge-offs of about $250 million.

### Sources

- [10-Q Filing — PNC Financial (PNC)](https://www.sec.gov/Archives/edgar/data/0000713676/000162828026069377/pnc-20260930.htm?ref=bullished.co) — SEC EDGAR
- [10-Q Filing — PNC Financial (PNC), Q2 FY2026 filed 2026-08-05 (comparison basis)](https://www.sec.gov/Archives/edgar/data/0000713676/000162828026053170/pnc-20260630.htm?ref=bullished.co) — SEC EDGAR
- [Earnings release (8-K Item 2.02, q32026financialhighlightsa.htm) — PNC Financial, filed 2026-10-15](https://www.sec.gov/Archives/edgar/data/0000713676/000162828026065936/q32026financialhighlightsa.htm?ref=bullished.co) — SEC EDGAR

### More on PNC Financial Services

- [PNC Targets A 3.0% Or Higher Net Interest Margin In The Fourth Quarter And Lifts 2026 Loan Outlook To About 13.5%](https://www.bullished.co/pnc-targets-a-3-0-or-higher-net-interest-margin-in-the-fourth-quarter-and-lifts-2026-loan-df359214/)
- [PNC's Demchak Says A Big Deal Could 'Destroy Massive Value' By Slowing Its AI Build](https://www.bullished.co/pncs-demchak-says-a-big-deal-could-destroy-massive-value-by-slowing-its-ai-build-9bc642fa/)
- [PNC's Efficiency Ratio Improves To 57% From 60% As Expenses Fall 8% And Loans Grow](https://www.bullished.co/pncs-efficiency-ratio-improves-to-57-from-60-as-expenses-fall-8-and-loans-grow-844110b3/)

[All PNC Financial Services (PNC) coverage →](https://www.bullished.co/tag/pnc/)