AmazonScience/document-haystack

1• Core noninterest expense to be stable, and2• The effective tax rate to be approximately 18.5%.3For the first quarter of 2024, compared to the fourth quarter of 2023, we expect:4• Average loans to be down approximately 1%,5• Net interest income to be down 3% to 5%, 6• Fee income to be down 6% to 8%,7• Other noninterest income, excluding net securities gains and Visa activity, to be between $150 million and $200 million,8• Total revenue to be down 3% to 4%,9• Core noninterest expense to be down 3% to 4%, and10• Net loan charge-offs to be between $200 million and $250 million.11 12Core noninterest expense guidance excludes the $515 million pre-tax impact of the FDIC’s special assessment related to the closures 13of Silicon Valley Bank and Signature Bank as well as $150 million of pre-tax workforce reduction charges incurred in the fourth 14quarter of 2023. See the Statistical Information (Unaudited) – Reconciliation of Core Noninterest Expense Guidance (non-GAAP) 15section of this Report.16We are unable to provide a meaningful or accurate reconciliation of forward-looking non-GAAP measures, without unreasonable 17effort, to their most directly comparable GAAP financial measures except for the impact of charges related to the FDIC special 18assessment and the workforce reduction to noninterest expense. This is due to the inherent difficulty of forecasting the timing and 19amounts necessary for the reconciliation when such amounts are subject to events that cannot be reasonably predicted, as noted in our 20Cautionary Statement. Accordingly, we cannot address the probable significance of unavailable information.21CONSOLIDATED INCOME STATEMENT REVIEW22Our Consolidated Income Statement is presented in Item 8 of this Report. For the comparison of 2022 over 2021, see the Consolidated 23Income Statement Review section in our 2022 Form 10-K. 24Net income for 2023 was $5.6 billion, or $12.79 per diluted common share, a decrease of $0.5 billion, or 8%, compared to net income 25of $6.1 billion, or $13.85 per diluted common share, for 2022. The decrease was driven by higher expenses, which included the impact 26of the FDIC special assessment and workforce reduction charges, as well as lower noninterest income and a higher provision for credit 27losses, partially offset by higher net interest income.28Net Interest Income29Table 3: Summarized Average Balances and Net Interest Income (a)30 2023 202231Year ended December 3132Dollars in millions33Average34Balances35Average36Yields/37Rates38Interest39Income/40Expense41Average42Balances43Average44Yields/45Rates46Interest47Income/48Expense49Assets50Interest-earning assets51Investment securities $ 140,351  2.54 % $ 3,568 $ 137,149  2.00 % $ 2,747 52Loans  323,520  5.69 %  18,423  307,699  3.86 %  11,886 53Interest-earning deposits with banks  36,645  5.19 %  1,902  41,050  1.41 %  578 54Other  8,884  6.33 %  562  9,651  3.50 %  337 55Total interest-earning assets/interest income $ 509,400  4.80 %  24,455 $ 495,549  3.14 %  15,548 56Liabilities57Interest-bearing liabilities58Interest-bearing deposits $ 315,393  2.10 %  6,609 $ 299,042  0.42 %  1,267 59Borrowed funds  67,282  5.62 %  3,783  42,450  2.72 %  1,155 60Total interest-bearing liabilities/interest expense $ 382,675  2.72 %  10,392 $ 341,492  0.71 %  2,422 61Net interest margin/income (non-GAAP)  2.76 %  14,063  2.65 %  13,126 62Taxable-equivalent adjustments  (147)  (112) 63Net interest income (GAAP)   $ 13,916   $ 13,014 64(a) Interest income calculated as taxable-equivalent interest income. To provide more meaningful comparisons of interest income and yields for all interest-earning assets, as 65well as net interest margins, we use interest income on a taxable-equivalent basis in calculating average yields and net interest margins by increasing the interest income 66earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under GAAP on the Consolidated 67Income Statement. For more information, see Reconciliation of Taxable-Equivalent Net Interest Income (non-GAAP) in the Statistical Information (Unaudited) section in 68Item 8 of this Report.69 7042    The PNC Financial Services Group, Inc. – 2023 Form 10-K71The secret object #1 is a "door".