PNC Financial PNC pulled off a second-quarter 2021 positive earnings surprise of 42.4% on substantial reserve release. Adjusted earnings per share of $4.50 surpassed the Zacks Consensus Estimate of $3.16.The company’s results reflect the impacts of the BBVA USA acquisition, which was closed in June 2021.Fee income growth on higher asset management revenues and service charges on deposits were tailwinds. However, higher expenses and a contraction of margin were negatives.Net income in the second quarter was $1.1 billion against a net loss of $744 million in the prior-year quarter.Revenues and Loans Improve, Expenses RiseTotal revenues in the reported quarter were around $4.7 billion, up 14% year over year. The top line surpassed the Zacks Consensus Estimate of $4.4 billion.Net interest income improved 2% from the year-ago quarter to $2.58 billion. The upswing is attributable to interest-earning assets acquired in the reported quarter and lower rates on deposits, partially offset by loans outstanding and securities yields. However, the net interest margin contracted 23 basis points to 2.29%, reflecting higher average balances held with the Federal Reserve Bank.Non-interest income grew 35% year over year to $2.09 billion on higher asset management, corporate and consumer services revenues. This was partially muted by a lower residential mortgage.PNC Financial’s non-interest expenses totaled $3.05 billion, up 21% from the year-ago figure. The rise primarily resulted from higher personnel, equipment, and occupancy and marketing costs.Efficiency ratio was 65% compared with 62% in the year-ago quarter. Higher efficiency ratio indicates lower profitability.As of Jun 30, 2021, total loans were up 24% sequentially to $294.7 billion. Total deposits improved 21% to $452.9 billion.Credit Quality: A Mixed BagNon-performing assets increased 44% year over year to $2.82 billion. Net loan charge-offs were $306 million, up 30% year over year.The company reported provisions for credit losses of $302 million compared with provisions of $2,463 million in the year-earlier quarter. Allowance for loan and lease losses declined 3% to $5.73 billion, on a year-over-year basis.Capital PositionAs of Jun 30, 2021, the Basel III common equity Tier 1 capital ratio was 10% compared with 11.3% as of Jun 30, 2020.Return on average assets and average common equity came in at 0.88% and 8.32%, respectively, compared with 3.21% and 30.11% witnessed in the prior-year quarter.Share Repurchase UpdateIn the second quarter of 2021, PNC Financial returned capital to shareholders through dividends on common shares of $0.5 billion. The company suspended repurchasing shares for the acquisition of BBVA USA.In June 2021, PNC reinstated its share-repurchase programs, with repurchases of up to $2.9 billion for the four-quarter window beginning in the third quarter of 2021.Our ViewpointThe company displayed a strong performance in the quarter under review. In the said quarter, it completed the acquisition of BBVA USA and organically improved fee income. Going forward, the company is well-poised to grow on the back of its diverse revenue mix. It remains on track to execute its strategic goals, including technology initiatives, which bodes well for the long term.With the gradual recovery of the economic backdrop, the company’s provisions are reducing, which is encouraging. However, a lower net interest margin and escalating expenses are headwinds.The PNC Financial Services Group, Inc Price, Consensus and EPS Surprise The PNC Financial Services Group, Inc price-consensus-eps-surprise-chart | The PNC Financial Services Group, Inc QuoteCurrently, PNC Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earnings Date of Other BanksPeople's United Financial, Inc. PBCT and U.S. Bancorp USB are scheduled to come out with quarterly numbers on Jul 15, while First Horizon Corporation FHN is slated to release Q2 numbers on Jul 16. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. 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