Regulatory Matters

12 Months Ended

Dec. 31, 2017

Banking and Thrift [Abstract]

Regulatory Matters

REGULATORY MATTERS

FNB and FNBPA are subject to various regulatory capital requirements administered by the federal banking agencies. Quantitative measures established by regulators to ensure capital adequacy require FNB and FNBPA to maintain minimum amounts and ratios of total, tier 1 and common equity tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and of leverage ratio (as defined). Failure to meet minimum capital requirements could lead to initiation of certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on our consolidated financial statements, dividends and future merger and acquisition activity. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, FNB and FNBPA must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. FNB’s and FNBPA’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

As of December 31, 2017, the most recent notification from the federal banking agencies categorized FNB and FNBPA as “well-capitalized” under the regulatory framework for prompt corrective action. There are no conditions or events since the notification which management believes have changed this categorization.

Following are the capital ratios for FNB and FNBPA:

	Actual				Well-Capitalized Requirements				Minimum Capital Requirements
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of December 31, 2017
F.N.B. Corporation:
Total capital	$	2,666,272	11.4	%	$	2,340,362	10.0	%	$	2,164,835	9.3	%
Tier 1 capital	2,184,571		9.3		1,872,290		8.0		1,696,763		7.3
Common equity tier 1	2,077,689		8.9		1,521,235		6.5		1,345,708		5.8
Leverage	2,184,571		7.6		1,440,797		5.0		1,152,638		4.0
Risk-weighted assets	23,403,622
FNBPA:
Total capital	2,504,191		10.7		2,332,593		10.0		2,157,649		9.3
Tier 1 capital	2,332,892		10.0		1,866,075		8.0		1,691,130		7.3
Common equity tier 1	2,252,892		9.7		1,516,186		6.5		1,341,241		5.8
Leverage	2,332,892		8.1		1,432,604		5.0		1,146,084		4.0
Risk-weighted assets	23,325,934
As of December 31, 2016
F.N.B. Corporation:
Total capital	$	1,917,386	12.0	%	$	1,597,951	10.0	%	$	1,378,232	8.6	%
Tier 1 capital	1,582,251		9.9		1,278,360		8.0		1,058,642		6.6
Common equity tier 1	1,475,369		9.2		1,038,668		6.5		818,950		5.1
Leverage	1,582,251		7.7		1,027,831		5.0		822,265		4.0
Risk-weighted assets	15,979,505
FNBPA:
Total capital	1,768,561		11.1		1,588,989		10.0		1,370,503		8.6
Tier 1 capital	1,614,167		10.2		1,271,191		8.0		1,052,705		6.6
Common equity tier 1	1,534,167		9.7		1,032,843		6.5		814,357		5.1
Leverage	1,614,167		7.9		1,019,034		5.0		815,227		4.0
Risk-weighted assets	15,889,893

In accordance with Basel III standards, the implementation of capital requirements is transitional and phases-in from January 1, 2015 through January 1, 2019. The minimum capital requirements for each period above are based on the requirements that were in effect at that time. Our management believes that FNB and FNBPA will continue to meet all "well-capitalized" requirements after Basel III is completely phased-in.

FNBPA was required to maintain aggregate cash reserves with the FRB amounting to $39.6 million at December 31, 2017. We also maintain deposits for various services such as check clearing. Certain limitations exist under applicable law and regulations by regulatory agencies regarding dividend distributions to a parent by our subsidiaries. As of December 31, 2017, our subsidiaries had $206.8 million of retained earnings available for distribution to us without prior regulatory approval.

Under current FRB regulations, FNBPA is limited in the amount it may lend to non-bank affiliates, including FNB. Such loans must be secured by specified collateral. In addition, any such loans to a non-bank affiliate may not exceed 10% of FNBPA’s capital and surplus and the aggregate of loans to all such affiliates may not exceed 20% of FNBPA’s capital and surplus. The maximum amount that may be borrowed by FNB affiliates under these provisions was $474.8 million at December 31, 2017.