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Total Equity and Other Comprehensive Income
 6 Months Ended
Jun. 30, 2020
Other Comprehensive Income [Abstract]  
Total Equity and Other Comprehensive Income Disclosure TOTAL EQUITY AND OTHER COMPREHENSIVE INCOME

Activity in total equity for the six months ended June 30, 2020 and 2019 is as follows.
Table 64: Rollforward of Total Equity
 
 
 
Shareholders’ Equity
 
  
  
 
In millions
Shares
Outstanding
Common
Stock

 
Common
Stock

Capital
Surplus -
Preferred
Stock

Capital
Surplus -
Common
Stock and
Other

Retained
Earnings

Accumulated
Other
Comprehensive
Income (Loss)

Treasury
Stock

 
Non-
controlling
Interests

Total Equity

 
Three months ended
 
 
 
 
 
 
 
 
 
 
 
 
Balance at March 31, 2019 (a)
452

 
$
2,711

$
3,990

$
12,183

$
39,742

$
(5
)
$
(10,085
)
 
$
39

$
48,575

 
Net income
 
 
 
 
 
1,362

 
 
 
12

1,374

 
Other comprehensive income (loss), net of tax
 
 
 
 
 
 
636

 
 
 
636

 
Cash dividends declared - Common
 
 
 
 
 
(432
)
 
 
 
 
(432
)
 
Cash dividends declared - Preferred
 
 
 
 
 
(55
)
 
 
 
 
(55
)
 
Preferred stock discount accretion
 
 
 
1

 
(1
)
 
 
 
 


 
Common stock activity
 
 
 
 
10

 
 
 
 
 
10

 
Treasury stock activity
(5
)
 
 
 
(1
)
 
 
(781
)
 
 
(782
)
 
Other
 
 
 

65

 
 
 
 
(10
)
55

 
Balance at June 30, 2019 (a)
447

 
$
2,711

$
3,991

$
12,257

$
40,616

$
631

$
(10,866
)
 
$
41

$
49,381

 
Balance at March 31, 2020 (a)
424

 
$
2,712

$
3,994

$
12,294

$
41,885

$
2,518

$
(14,140
)
 
$
27

$
49,290

 
Net income
 
 
 
 
 
3,648

 
 
 
7

3,655

 
Other comprehensive income, net of tax
 
 
 
 
 
 
551

 
 
 
551

 
Cash dividends declared - Common
 
 
 
 
 
(491
)
 
 
 
 
(491
)
 
Cash dividends declared - Preferred
 
 
 
 
 
(55
)
 
 
 
 
(55
)
 
Preferred stock discount accretion
 
 
 
1

 
(1
)
 
 
 
 

 
Common stock activity
 
 
 
 
11

 
 
 
 
 
11

 
Treasury stock activity
1

 
 
 
2

 
 
12

 
 
14

 
Other
 
 
 
 
(18
)
 
 
 
 
(9
)
(27
)
 
Balance at June 30, 2020 (a)
425

 
$
2,712

$
3,995

$
12,289

$
44,986

$
3,069

$
(14,128
)
 
$
25

$
52,948

 
Six months ended
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2018 (a)
457

 
$
2,711

$
3,986

$
12,291

$
38,919

$
(725
)
$
(9,454
)
 
$
42

$
47,770

 
Cumulative effect of ASU 2016-02 adoption (b)
 
 
 
 
 
62


 
 
 
62

 
Balance at January 1, 2019 (a)
457

 
$
2,711

$
3,986

$
12,291

$
38,981

$
(725
)
$
(9,454
)
 
$
42

$
47,832

 
Net income
 
 
 
 
 
2,623

 
 
 
22

2,645

 
Other comprehensive income (loss), net of tax
 
 
 
 
 
 
1,356

 
 
 
1,356

 
Cash dividends declared - Common
 
 
 
 
 
(868
)
 
 
 
 
(868
)
 
Cash dividends declared - Preferred
 
 
 
 
 
(118
)
 
 
 
 
(118
)
 
Preferred stock discount accretion
 
 
 
2

 
(2
)
 
 
 
 


 
Common stock activity
 
 
 
 
10

 
 
 
 
 
10

 
Treasury stock activity
(10
)
 
 
 
9

 
 
(1,412
)
 
 
(1,403
)
 
Other
 
 
 
3

(53
)
 
 
 
 
(23
)
(73
)
 
Balance at June 30, 2019 (a)
447

 
$
2,711

$
3,991

$
12,257

$
40,616

$
631

$
(10,866
)
 
$
41

$
49,381

 
Balance at December 31, 2019 (a)
433

 
$
2,712

$
3,993

$
12,376

$
42,215

$
799

$
(12,781
)
 
$
29

$
49,343

 
Cumulative effect of ASU 2016-13 adoption (c)
 
 
 
 
 
(671
)
 
 
 
 
(671
)
 
Balance at January 1, 2020 (a)
433

 
$
2,712

$
3,993

$
12,376

$
41,544

$
799

$
(12,781
)
 
$
29

$
48,672

 
Net income
 
 
 
 
 
4,556

 
 
 
14

4,570

 
Other comprehensive income, net of tax
 
 
 
 
 
 
2,270

 
 
 
2,270

 
Cash dividends declared - Common
 
 
 
 
 
(994
)
 
 
 
 
(994
)
 
Cash dividends declared - Preferred
 
 
 
 
 
(118
)
 
 
 
 
(118
)
 
Preferred stock discount accretion
 
 
 
2

 
(2
)
 
 
 
 


 
Common stock activity
 
 
 
 
11

 
 
 
 
 
11

 
Treasury stock activity
(8
)
 
 
 
51

 
 
(1,347
)
 
 
(1,296
)
 
Other
 
 
 
 
(149
)
 
 
 
 
(18
)
(167
)
 
Balance at June 30, 2020 (a)
425

 
$
2,712

$
3,995

$
12,289

$
44,986

$
3,069

$
(14,128
)
 
$
25

$
52,948

 
(a)
The par value of our preferred stock outstanding was less than $.5 million at each date and, therefore, is excluded from this presentation.
(b)
Represents the cumulative effect of adopting ASU 2016-02 - Leases related primarily to deferred gains on previous sale-leaseback transactions. See the Recently Adopted Accounting Standards portion of Note 1 Accounting Policies in our 2019 Form 10-K for additional detail.
(c)
Represents the cumulative effect of adopting ASU 2016-13 - Financial Instruments - Credit Losses. See the Recently Adopted Accounting Standards portion of Note 1 Accounting Policies in this report for additional detail on this adoption.
Other Comprehensive Income

Details of other comprehensive income (loss) are as follows:

Table 65: Other Comprehensive Income (Loss)
 
Three months ended
June 30
 
 
Six months ended
June 30
 
In millions
2020

2019

 
 
2020

2019

 
Net unrealized gains (losses) on securities without an allowance for credit losses
 
 
 
 
 
 
 
Increase in net unrealized gains (losses) on securities
$
661

 
 
 
$
2,330

 
 
Less: Net gains (losses) realized as a yield adjustment reclassified to investment securities interest income
1

 
 
 
2

 
 
Less: Net gains (losses) realized on sales of securities reclassified to noninterest income
40

 
 
 
221

 
 
Net increase (decrease), pre-tax
620

 
 
 
2,107

 
 
Effect of income taxes
(143
)
 
 
 
(484
)
 
 
Net increase (decrease), after-tax
477

 
 
 
1,623

 
 
Net unrealized gains (losses) on securities with an allowance for credit losses
 
 
 
 
 
 
 
Increase in net unrealized gains (losses) on securities
(82
)
 
 
 
(89
)
 
 
Net increase (decrease), pre-tax
(82
)
 
 
 
(89
)
 
 
Effect of income taxes
18

 
 
 
20

 
 
Net increase (decrease), after-tax
(64
)
 
 
 
(69
)
 
 
Net unrealized gains (losses) on non-OTTI securities
 
 
 
 
 
 
 
Increase in net unrealized gains (losses) on non-OTTI securities
 
$
713

 
 
 
$
1,353

 
Less: Net gains (losses) realized as a yield adjustment reclassified to investment securities interest income
 
3

 
 
 
6

 
Less: Net gains (losses) realized on sales of securities reclassified to noninterest income
 
16

 
 
 
14

 
Net increase (decrease), pre-tax
 
694

 
 
 
1,333

 
Effect of income taxes
 
(159
)
 
 
 
(306
)
 
Net increase (decrease), after-tax
 
535

 
 
 
1,027

 
Net unrealized gains (losses) on OTTI securities
 
 
 
 
 
 
 
Increase in net unrealized gains (losses) on OTTI securities
 


 
 
 
9

 
Net increase (decrease), pre-tax
 
—

 
 
 
9

 
Effect of income taxes
 


 
 
 
(2
)
 
Net increase (decrease), after-tax


—

 
 
 
7

 
Net unrealized gains (losses) on cash flow hedge derivatives
 
 
 
 
 
 
 
Increase in net unrealized gains (losses) on cash flow hedge derivatives
115

246

 
 
945

354

 
Less: Net gains (losses) realized as a yield adjustment reclassified to loan interest income
102

(12
)
 
 
144

(20
)
 
Less: Net gains (losses) realized as a yield adjustment reclassified to investment securities interest income
1

1

 
 
3

2

 
Less: Net gains (losses) realized on sales of securities reclassified to noninterest income
—

3

 
 
1

18

 
Net increase (decrease), pre-tax
12

254

 
 
797

354

 
Effect of income taxes
(3
)
(58
)
 
 
(183
)
(81
)
 
Net increase (decrease), after-tax
9

196

 
 
614

273

 
Pension and other postretirement benefit plan adjustments
 
 
 
 
 
 
 
Net pension and other postretirement benefit activity
(20
)
(89
)
 
 
(10
)
54

 
Amortization of actuarial loss (gain) reclassified to other noninterest expense
2

4

 
 
3

5

 
Amortization of prior service cost (credit) reclassified to other noninterest expense
1

1

 
 
2

2

 
Net increase (decrease), pre-tax
(17
)
(84
)
 
 
(5
)
61

 
Effect of income taxes
4

19

 
 
1

(14
)
 
Net increase (decrease), after-tax
(13
)
(65
)
 
 
(4
)
47

 
Other
 
 
 
 
 
 
 
Net investment hedge derivatives
5

32

 
 
80

14

 
Foreign currency translation adjustments and other
(3
)
(27
)
 
 
(70
)
(4
)
 
Net increase (decrease), pre-tax
2

5

 
 
10

10

 
Effect of income taxes
(1
)
(7
)
 
 
(19
)
(4
)
 
Net increase (decrease), after-tax
1

(2
)
 
 
(9
)
6

 
Total other comprehensive income (loss) from continuing operations, pre-tax
535

869

 
 
2,820

1,767

 
Total other comprehensive income (loss) from continuing operations, tax effect
(125
)
(205
)
 
 
(665
)
(407
)
 
Total other comprehensive income (loss) from continuing operations, after-tax
$
410

$
664

 
 
$
2,155

$
1,360

 
Total other comprehensive income (loss) from discontinued operations, after-tax
141

(28
)
 
 
115

(4
)
 
Total other comprehensive income (loss), after-tax
$
551

$
636

 
 
$
2,270

$
1,356

 

Table 66: Accumulated Other Comprehensive Income (Loss) Components
In millions, after-tax
Net unrealized gains (losses) on non-OTTI securities

 
Net unrealized gains (losses) on OTTI securities

 
Net unrealized gains (losses) on cash flow hedge derivatives

 
Pension and other postretirement benefit plan adjustments

 
Other

 
Accumulated other Comprehensive Income from Continuing Operations

 
Accumulated other Comprehensive Income from Discontinued Operations

Total

 
Three months ended
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at March 31, 2019
$
208

 
$
211

 
$
124

 
$
(418
)
 
$
(35
)
 
$
90

 
$
(95
)
$
(5
)
 
Net activity
535

 


 
196

 
(65
)
 
(2
)
 
664

 
(28
)
636

 
Balance at June 30, 2019
$
743

 
$
211

 
$
320

 
$
(483
)
 
$
(37
)
 
$
754

 
$
(123
)
$
631

 
Six months ended
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2018
$
(284
)
 
$
204

 
$
47

 
$
(530
)
 
$
(43
)
 
$
(606
)
 
$
(119
)
$
(725
)
 
Net activity
1,027

 
7

 
273

 
47

 
6

 
1,360

 
(4
)
1,356

 
Balance at June 30, 2019
$
743

 
$
211

 
$
320

 
$
(483
)
 
$
(37
)
 
$
754

 
$
(123
)
$
631

 


In millions, after-tax
Net unrealized gains (losses) on securities without an Allowance

 
Net unrealized gains (losses) on securities with an Allowance

 
Net unrealized gains (losses) on cash flow hedge derivatives

 
Pension and  other postretirement benefit plan adjustments

 
Other

 
Accumulated other Comprehensive Income from Continuing Operations

 
Accumulated other Comprehensive Income from Discontinued Operations

Total

 
Three months ended
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at March 31, 2020
$
2,213

 
$
(5
)
 
$
881

 
$
(399
)
 
$
(31
)
 
$
2,659

 
$
(141
)
$
2,518

 
Net activity
477

 
(64
)
 
9

 
(13
)
 
1

 
410

 
141

551

 
Balance at June 30, 2020
$
2,690

 
$
(69
)
 
$
890

 
$
(412
)
 
$
(30
)
 
$
3,069

 


$
3,069

 
Six months ended
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2019
$
844

 
$
223

 
$
276

 
$
(408
)
 
$
(21
)
 
$
914

 
$
(115
)
$
799

 
Cumulative effect of ASU 2016-03 adoption (a)
223

 
(223
)
 


 


 
 
 


 
 


 
Balance at January 1, 2020
$
1,067

 
 
 
$
276

 
$
(408
)
 
$
(21
)
 
$
914

 
$
(115
)
$
799

 
Net activity
1,623

 
$
(69
)
 
614

 
(4
)
 
(9
)
 
2,155

 
115

2,270

 
Balance at June 30, 2020
$
2,690

 
$
(69
)
 
$
890

 
$
(412
)
 
$
(30
)
 
$
3,069

 


$
3,069

 
(a)
Represents the cumulative effect of adopting ASU 2016-13 - Credit Losses reflecting the change from OTTI to ACL for debt securities. See the Recently Adopted Accounting Standards portion of Note 1 Accounting Policies in this report for additional detail on this adoption.
The following table provides the dividends per share for PNC's common and preferred stock.

Table 67: Dividends Per Share (a)
 
Three months ended June 30
Six months ended June 30
 
2020
2019
2020
2019
Common Stock
$
1.15

$
.95

$
2.30

$
1.90

Preferred Stock
 
 
 
 
   Series B
$
.45

$
.45

$
.90

$
.90

   Series O
 
 
$
3,375

$
3,375

   Series P
$
1,532

$
1,532

$
3,063

$
3,063

   Series Q
$
1,344

$
1,344

$
2,688

$
2,688

   Series R
$
2,425

$
2,425

$
2,425

$
2,425

   Series S
$
2,500

$
2,500

$
2,500

$
2,500

(a) Dividends are payable quarterly other than Series O, Series R, and Series S preferred stock, which are payable semiannually, with the Series O payable in different quarters
from the Series R and Series S preferred stock

The PNC board of directors declared a quarterly cash dividend on common stock payable on August 5, 2020 of $1.15 per share, consistent with the second quarter dividend paid on May 5, 2020.