10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q  

(Mark One)

☒ Quarterly Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

For the quarterly period ended June 30, 2024

☐ Transition Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

For the transition period from                      to                     

Commission file number 001-31940  

F.N.B. CORPORATION

(Exact name of registrant as specified in its charter) 

Pennsylvania	25-1255406
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

One North Shore Center,	12 Federal Street,	Pittsburgh,	PA	15212
(Address of principal executive offices)				(Zip Code)

Registrant’s telephone number, including area code: 800-555-5455

(Former name, former address and former fiscal year, if changed since last report) 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer	☒	Accelerated Filer	☐
Non-accelerated Filer	☐	Smaller reporting company	☐
		Emerging Growth Company	☐

1

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Exchange on which Registered
Common Stock, par value $0.01 per share	FNB	New York Stock Exchange

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding at	July 31, 2024
Common Stock, $0.01 Par Value	359,571,111	Shares

2

F.N.B. CORPORATION

FORM 10-Q

June 30, 2024

INDEX

		PAGE
PART I – FINANCIAL INFORMATION
	Glossary of Acronyms and Terms	4
Item 1.	Financial Statements
	Consolidated Balance Sheets	5
	Consolidated Statements of Income	6
	Consolidated Statements of Comprehensive Income (Loss)	7
	Consolidated Statements of Stockholders’ Equity	8
	Consolidated Statements of Cash Flows	10
	Notes to Consolidated Financial Statements	11
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	58
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	96
Item 4.	Controls and Procedures	96
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	97
Item 1A.	Risk Factors	97
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	97
Item 3.	Defaults Upon Senior Securities	97
Item 4.	Mine Safety Disclosures	97
Item 5.	Other Information	97
Item 6.	Exhibits	98
Signatures		99

3

Glossary of Acronyms and Terms

Acronym	Description	Acronym	Description
ACL	Allowance for credit losses	FTE	Fully taxable equivalent
AFS	Available for sale	GAAP	U.S. generally accepted accounting principles
ALCO	Asset/Liability Committee	HTM	Held to maturity
AOCI	Accumulated other comprehensive income	LGD	Loss given default
ASU	Accounting Standards Update	LIHTC	Various partnerships of affordable housing
AULC	Allowance for unfunded loan commitments	MBS	Mortgage-backed securities
CECL	Current expected credit losses	MD&A	Management's Discussion and Analysis of Financial Condition and Results of Operations
CET1	Common equity tier 1	MSRs	Mortgage servicing rights
CFPB	Consumer Financial Protection Bureau	OCC	Office of the Comptroller of the Currency
DOJ	U.S. Department of Justice	OREO	Other real estate owned
EVE	Economic value of equity	R&S	Reasonable and Supportable
FASB	Financial Accounting Standards Board	SBA	Small Business Administration
FDIC	Federal Deposit Insurance Corporation	SEC	Securities and Exchange Commission
FHLB	Federal Home Loan Bank	SOFR	Secured Overnight Financing Rate
FICO	Fair Isaac Corporation	TPS	Trust preferred securities
FNB	F.N.B. Corporation	U.S.	United States of America
FNBPA	First National Bank of Pennsylvania	UST	U.S. Department of the Treasury
FOMC	Federal Open Market Committee	VIE	Variable interest entity
FRB	Board of Governors of the Federal Reserve System

4

PART I – FINANCIAL INFORMATION

ITEM 1.    FINANCIAL STATEMENTS

F.N.B. CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in millions, except share and per share data)

	June 30, 2024		December 31, 2023
	(Unaudited)
Assets
Cash and due from banks	$	448	$	447
Interest-bearing deposits with banks	1,432		1,129
Cash and Cash Equivalents	1,880		1,576
Debt securities available for sale (amortized cost of $3,585 and $3,460; allowance for credit losses of $0 and $0)	3,364		3,254
Debt securities held to maturity (fair value of $3,532 and $3,593; allowance for credit losses of $0 and $0)	3,893		3,911
Loans held for sale (includes $128 and $150 measured at fair value) (1)	132		488
Loans and leases, net of unearned income of $100 and $91 (includes $47 and $45 measured at fair value) (1)	33,757		32,323
Allowance for credit losses on loans and leases	(419)		(406)
Net Loans and Leases	33,338		31,917
Premises and equipment, net	489		461
Goodwill	2,477		2,477
Core deposit and other intangible assets, net	60		69
Bank owned life insurance	667		660
Other assets	1,415		1,345
Total Assets	$	47,715	$	46,158
Liabilities
Deposits:
Non-interest-bearing demand	$	10,062	$	10,222
Interest-bearing demand	14,697		14,809
Savings	3,348		3,465
Certificates and other time deposits	6,887		6,215
Total Deposits	34,994		34,711
Short-term borrowings	3,616		2,506
Long-term borrowings	2,016		1,971
Other liabilities	999		920
Total Liabilities	41,625		40,108
Stockholders’ Equity
Preferred stock
Issued – 0 and 110,877 shares - $0.01 par value	—		107
Common stock - $0.01 par value
Authorized – 500,000,000 shares
Issued – 374,982,366 and 374,939,537 shares	4		4
Additional paid-in capital	4,690		4,692
Retained earnings	1,820		1,669
Accumulated other comprehensive loss	(243)		(235)
Treasury stock – 15,424,340 and 16,110,120 shares at cost	(181)		(187)
Total Stockholders’ Equity	6,090		6,050
Total Liabilities and Stockholders’ Equity	$	47,715	$	46,158

(1)Amount represents loans for which we have elected the fair value option. See Note 18.

See accompanying Notes to Consolidated Financial Statements (unaudited)

5

F.N.B. CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in millions, except per share data)

Unaudited

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Interest Income
Loans and leases, including fees	$	494	$	429	$	975	$	823
Securities:
Taxable	48		35		94		71
Tax-exempt	7		7		14		14
Other	8		13		17		20
Total Interest Income	557		484		1,100		928
Interest Expense
Deposits	180		112		350		196
Short-term borrowings	32		22		60		32
Long-term borrowings	29		21		55		34
Total Interest Expense	241		155		465		262
Net Interest Income	316		329		635		666
Provision for credit losses	20		19		34		33
Net Interest Income After Provision for Credit Losses	296		310		601		633
Non-Interest Income
Service charges	23		20		44		40
Interchange and card transaction fees	13		14		26		26
Trust services	12		10		23		21
Insurance commissions and fees	6		6		13		14
Securities commissions and fees	8		7		16		14
Capital markets income	5		6		11		13
Mortgage banking operations	7		5		15		10
Dividends on non-marketable equity securities	7		6		13		10
Bank owned life insurance	4		3		7		6
Other	3		4		8		6
Total Non-Interest Income	88		81		176		160
Non-Interest Expense
Salaries and employee benefits	121		114		250		234
Net occupancy	19		17		39		34
Equipment	24		21		48		43
Amortization of intangibles	5		5		9		10
Outside services	23		20		46		40
Marketing	4		4		9		8
FDIC insurance	10		8		23		15
Bank shares and franchise taxes	4		4		8		8
Merger-related	—		—		—		2
Other	17		19		32		38
Total Non-Interest Expense	227		212		464		432
Income Before Income Taxes	157		179		313		361
Income taxes	34		37		68		72
Net Income	123		142		245		289
Preferred stock dividends	—		2		6		4
Net Income Available to Common Stockholders	$	123	$	140	$	239	$	285
Earnings per Common Share
Basic	$	0.34	$	0.39	$	0.66	$	0.79
Diluted	0.34		0.39		0.66		0.78

See accompanying Notes to Consolidated Financial Statements (unaudited)

6

F.N.B. CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Dollars in millions)

Unaudited

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net income	$	123	$	142	$	245	$	289
Other comprehensive income (loss):
Securities available for sale:
Unrealized gains (losses) arising during the period, net of tax expense (benefit) of $1, $(9), $(3) and $1	2		(31)		(11)		4
Derivative instruments:
Unrealized gains (losses) arising during the period, net of tax expense (benefit) of $0, $(4), $(3) and $(3)	(3)		(14)		(12)		(10)
Reclassification adjustment for gains included in net income, net of tax expense of $2, $1, $4 and $2	8		4		15		7
Pension and postretirement benefit obligations:
Unrealized gains arising during the period, net of tax expense of $0, $0, $0 and $0	—		1		—		1
Other Comprehensive Income (Loss)	7		(40)		(8)		2
Comprehensive Income	$	130	$	102	$	237	$	291

See accompanying Notes to Consolidated Financial Statements (unaudited)

7

F.N.B. CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Dollars in millions, except per share data)

Unaudited

	Preferred Stock		Common Stock		Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Total
Three Months Ended June 30, 2023
Balance at beginning of period	$	107	$	4	$	4,693	$	1,471	$	(315)	$	(172)	$	5,788
Comprehensive income (loss)							142		(40)				102
Dividends declared:
Preferred stock: $18.13/share							(2)						(2)
Common stock: $0.12/share							(43)						(43)
Issuance of common stock			—		(9)		(4)				9		(4)
Repurchase of common stock											(25)		(25)
Restricted stock compensation					2								2
Balance at end of period	$	107	$	4	$	4,686	$	1,564	$	(355)	$	(188)	$	5,818
Three Months Ended June 30, 2024
Balance at beginning of period	$	—	$	4	$	4,694	$	1,740	$	(250)	$	(182)	$	6,006
Comprehensive income (loss)							123		7				130
Dividends declared:
Common stock: $0.12/share							(43)						(43)
Issuance of common stock			—		(6)		—				4		(2)
Repurchase of common stock											(3)		(3)
Restricted stock compensation					2								2
Balance at end of period	$	—	$	4	$	4,690	$	1,820	$	(243)	$	(181)	$	6,090

8

	Preferred Stock		Common Stock		Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Total
Six Months Ended June 30, 2023
Balance at beginning of period	$	107	$	4	$	4,696	$	1,370	$	(357)	$	(167)	$	5,653
Comprehensive income (loss)							289		2				291
Dividends declared:
Preferred stock: $36.26/share							(4)						(4)
Common stock: $0.24/share							(87)						(87)
Issuance of common stock			—		(22)		(4)				16		(10)
Repurchase of common stock											(37)		(37)
Restricted stock compensation					12								12
Balance at end of period	$	107	$	4	$	4,686	$	1,564	$	(355)	$	(188)	$	5,818
Six Months Ended June 30, 2024
Balance at beginning of period	$	107	$	4	$	4,692	$	1,669	$	(235)	$	(187)	$	6,050
Comprehensive income (loss)							245		(8)				237
Dividends declared:
Preferred stock: $18.13/share							(2)						(2)
Common stock: $0.24/share							(87)						(87)
Redemption of preferred stock	(107)						(4)						(111)
Issuance of common stock			—		(14)		—				9		(5)
Repurchase of common stock											(3)		(3)
Restricted stock compensation					12								12
Adoption of new accounting standard							(1)						(1)
Balance at end of period	$	—	$	4	$	4,690	$	1,820	$	(243)	$	(181)	$	6,090

See accompanying Notes to Consolidated Financial Statements (unaudited)

9

F.N.B. CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in millions)

Unaudited

	Six Months Ended June 30,
	2024		2023
Operating Activities
Net income	$	245	$	289
Adjustments to reconcile net income to net cash flows provided by (used in) operating activities:
Depreciation, amortization and accretion	32		42
Provision for credit losses	34		33
Deferred tax expense (benefit)	16		(3)
Loans originated for sale	(681)		(458)
Loans sold	702		459
Net (gain) loss on sale of loans	(9)		3
Net change in:
Interest receivable	(17)		(11)
Interest payable	4		24
Bank owned life insurance, excluding purchases	(6)		(5)
Other, net	10		(224)
Net cash flows provided by operating activities	330		149
Investing Activities
Net change in loans and leases, excluding sales and transfers	(1,449)		(1,092)
Debt securities available for sale:
Purchases	(725)		(135)
Maturities/payments	603		234
Debt securities held to maturity:
Purchases	(173)		(75)
Maturities/payments	194		175
Increase in premises and equipment	(59)		(60)
Net proceeds from sales of portfolio loans	345		—
Net cash flows provided by (used in) investing activities	(1,264)		(953)
Financing Activities
Net change in:
Demand (non-interest-bearing and interest-bearing) and savings accounts	(389)		(2,668)
Time deposits	670		1,721
Short-term borrowings	1,110		1,019
Proceeds from issuance of long-term borrowings	271		1,220
Repayment of long-term borrowings	(227)		(332)
Redemption of preferred stock	(111)		—
Repurchases of common stock	(3)		(37)
Cash dividends paid:
Preferred stock	(2)		(4)
Common stock	(87)		(87)
Other, net	6		2
Net cash flows provided by (used in) financing activities	1,238		834
Net Increase (Decrease) in Cash and Cash Equivalents	304		30
Cash and cash equivalents at beginning of period	1,576		1,674
Cash and Cash Equivalents at End of Period	$	1,880	$	1,704

See accompanying Notes to Consolidated Financial Statements (unaudited)

10

F.N.B. CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

June 30, 2024

The terms “FNB,” “the Corporation,” “we,” “us” and “our” throughout this Report mean F.N.B. Corporation and our consolidated subsidiaries, unless the context indicates that we refer only to the parent company, F.N.B. Corporation. When we refer to "FNBPA" in this Report, we mean our bank subsidiary, First National Bank of Pennsylvania, and its subsidiaries.

NATURE OF OPERATIONS

F.N.B. Corporation, headquartered in Pittsburgh, Pennsylvania, is a diversified financial services company operating in seven states and the District of Columbia. Our market coverage spans several major metropolitan areas including: Pittsburgh, Pennsylvania; Baltimore, Maryland; Cleveland, Ohio; Washington, D.C.; Charlotte, Raleigh, Durham and the Piedmont Triad (Winston-Salem, Greensboro and High Point) in North Carolina; and Charleston, South Carolina. As of June 30, 2024, we had 345 branches throughout Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington D.C. and Virginia.

We provide a full range of commercial banking, consumer banking and wealth management solutions through our subsidiary network which is led by our largest affiliate, FNBPA, founded in 1864. Commercial banking solutions include corporate banking, small business banking, investment real estate financing, government banking, business credit, capital markets and lease financing. Consumer banking provides a full line of consumer banking products and services, including deposit products, mortgage lending, consumer lending and a complete suite of mobile and online banking services. Wealth management services include asset management, private banking and insurance.

NOTE 1.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Our accompanying Consolidated Financial Statements and these Notes to Consolidated Financial Statements (unaudited) include subsidiaries in which we have a controlling financial interest. We own and operate FNBPA, First National Trust Company, First National Investment Services Company, LLC, F.N.B. Investment Advisors, Inc., First National Insurance Agency, LLC, Bank Capital Services, LLC, F.N.B. Capital Corporation, LLC and Waubank Securities, LLC, and include results for each of these entities in the accompanying Consolidated Financial Statements.

Companies in which we hold a controlling financial interest, or are a VIE in which we have the power to direct the activities of an entity that most significantly impact the entity’s economic performance and have an obligation to absorb losses or the right to receive benefits which could potentially be significant to the VIE, are consolidated. For a voting interest entity, a controlling financial interest is generally where we hold more than 50% of the outstanding voting shares. VIEs in which we do not hold the power to direct the activities of the entity that most significantly impact the entity’s economic performance or an obligation to absorb losses or the right to receive benefits which could potentially be significant to the VIE are not consolidated. Investments in companies that are not consolidated are accounted for using the equity method when we have the ability to exert significant influence or the cost method when we do not have the ability to exert significant influence. Investments in private investment partnerships that are accounted for under the equity method or the cost method are included in other assets and our proportional interest in the equity investments’ earnings are included in other non-interest income. Investment interests accounted for under the cost and equity methods are periodically evaluated for impairment.

The accompanying interim unaudited Consolidated Financial Statements include all adjustments that are necessary, in the opinion of management, to fairly reflect our financial position and results of operations in accordance with GAAP. All significant intercompany balances and transactions have been eliminated. Certain prior period amounts have been reclassified to the current period presentation. Such reclassifications had no impact on our net income and stockholders' equity. Events occurring subsequent to June 30, 2024 have been evaluated for potential recognition or disclosure in the Consolidated Financial Statements through the date of the filing of the Consolidated Financial Statements with the SEC.

Certain information and Note disclosures normally included in Consolidated Financial Statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. The interim operating results are not necessarily indicative of operating results we expect for the full year. These interim unaudited Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto included in our 2023 Annual Report on Form 10-K filed with the SEC on February 26, 2024.

11

Use of Estimates

Our accounting and reporting policies conform with GAAP. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes to Consolidated Financial Statements (unaudited). Actual results could materially differ from those estimates. Material estimates that are particularly susceptible to significant changes include the ACL, fair value of financial instruments, goodwill and other intangible assets and income taxes and deferred tax assets, which are listed in the critical accounting estimates. For a detailed description of our significant accounting policies and critical accounting estimates, see Note 1, "Summary of Significant Accounting Policies" and the "Application of Critical Accounting Policies" section in the MD&A, both in our 2023 Annual Report on Form 10-K.

Adoption of New Accounting Standards

Effective January 1, 2024, we adopted the provision of ASU 2023-02, Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, which permits reporting entities to make an accounting policy election to account for tax equity investments using the proportional amortization method if certain conditions are met. The election is to be made on a tax-credit-program-by-tax-credit-program basis and should be applied consistently to all investments within an elected tax credit program. Upon the adoption of ASU 2023-02, we elected to apply the proportional amortization method of accounting to our qualifying historic and new market tax credit investments. The proportional amortization method recognizes the amortized cost of the investment as a component of income tax expense on the consolidated statements of income and as a component of operating activities within other assets and other liabilities on the consolidated statements of cash flows. We historically applied proportional amortization to the majority of our LIHTC investments. LIHTCs that do not meet the requirements of the proportional amortization method are recognized using the equity method. See Note 8, "Variable Interest Entities" for additional information.

NOTE 2.    NEW ACCOUNTING STANDARDS

The following table summarizes accounting pronouncements issued by the FASB that we recently adopted or will be adopting in the future.

TABLE 2.1

Standard	Description	Financial Statements Impact
Income Taxes
ASU 2023-09, Income Taxes: Improvements to Income Tax Disclosures	This Update requires public business entities to disclose additional categories of information about federal, state, and foreign income taxes in the tabular rate reconciliation table. Additionally, entities must provide more details regarding reconciling items in some categories if the items are equal to or greater than a specified quantitative threshold. This Update also requires all entities to annually disclose income taxes paid, net of refunds received, disaggregated by federal, state, and foreign taxes and further disaggregated by jurisdiction based on a specified quantitative threshold.	This Update is to be applied using a prospective method with an option to apply it retrospectively for each period presented and will be effective as of January 1, 2025. Early adoption is permitted. We are currently evaluating the effect this Update will have on our consolidated financial statements, the related disclosures and our processes, systems, and controls related to disclosures.

12

Standard	Description	Financial Statements Impact
Segment Reporting
ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure	This Update requires all public entities to disclose significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required in annual disclosures.	This Update is to be applied using a retrospective method to all prior periods presented and is effective for annual periods beginning on January 1, 2024, and will be effective for interim periods beginning on January 1, 2025. Early adoption is permitted. We do not expect the adoption of this Update to materially impact our consolidated financial statements and we are currently evaluating the effect this Update will have on the related disclosures.
Tax Equity Investments
ASU 2023-02, Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method	This Update expands the use of the proportional amortization method of accounting, previously only allowable for LIHTC investments, to equity investments in other tax credit structures that meet certain criteria. The Update also removed the specialized guidance for LIHTC investments that are not accounted for using the proportional amortization method or equity method and require that those investments are accounted for using Topic 321 regarding equity investments.	This Update is to be applied using either a modified retrospective or a retrospective method and is effective as of January 1, 2024. Early adoption of this Update is permitted. We adopted this Update on January 1, 2024 on a modified retrospective basis for tax credit programs that are eligible to apply proportional amortization. As a result, we recorded a reduction of $0.5 million in retained earnings for the cumulative effect of the adoption.

NOTE 3.    SECURITIES

The amortized cost and fair value of AFS debt securities are presented in the table below. There was no ACL associated with the AFS portfolio at June 30, 2024 and December 31, 2023. Accrued interest receivable on AFS debt securities totaled $13.3 million at June 30, 2024 and $9.6 million at December 31, 2023, and is excluded from the estimate of credit losses and assessed separately in other assets in the Consolidated Balance Sheets. Accordingly, we have excluded accrued interest receivable from both the fair value and amortized cost basis of AFS debt securities.

13

TABLE 3.1

(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair  Value
Debt Securities AFS:
June 30, 2024
U.S. Treasury	$	199	$	—	$	(2)	$	197
U.S. government agencies	67		—		—		67
U.S. government-sponsored entities	301		1		(4)		298
Residential MBS:
Agency MBS	951		—		(65)		886
Agency collateralized mortgage obligations	871		—		(113)		758
Agency commercial MBS	1,127		3		(38)		1,092
States of the U.S. and political subdivisions (municipals)	28		—		(2)		26
Other debt securities	41		—		(1)		40
Total debt securities AFS	$	3,585	$	4	$	(225)	$	3,364

(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair  Value
Debt Securities AFS:
December 31, 2023
U.S. Treasury	$	422	$	—	$	(2)	$	420
U.S. government agencies	78		1		—		79
U.S. government-sponsored entities	227		—		(4)		223
Residential MBS:
Agency MBS	814		—		(62)		752
Agency collateralized mortgage obligations	946		—		(114)		832
Agency commercial MBS	905		9		(30)		884
States of the U.S. and political subdivisions (municipals)	30		—		(3)		27
Other debt securities	38		—		(1)		37
Total debt securities AFS	$	3,460	$	10	$	(216)	$	3,254

14

The amortized cost and fair value of HTM debt securities are presented in the following table. The ACL for the HTM portfolio was $0.27 million and $0.28 million at June 30, 2024 and December 31, 2023, respectively. Accrued interest receivable on HTM debt securities totaled $14.1 million and $14.7 million at June 30, 2024 and December 31, 2023, respectively, and is excluded from the estimate of credit losses and assessed separately in other assets in the Consolidated Balance Sheets. Accordingly, we have excluded accrued interest receivable from both the fair value and amortized cost basis of HTM debt securities.

TABLE 3.2

(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair  Value
Debt Securities HTM:
June 30, 2024
U.S. Treasury	$	1	$	—	$	—	$	1
U.S. government agencies	1		—		—		1
U.S. government-sponsored entities	28		—		—		28
Residential MBS:
Agency MBS	977		1		(106)		872
Agency collateralized mortgage obligations	769		—		(108)		661
Agency commercial MBS	1,094		2		(50)		1,046
States of the U.S. and political subdivisions (municipals)	1,007		—		(98)		909
Other debt securities	16		—		(2)		14
Total debt securities HTM	$	3,893	$	3	$	(364)	$	3,532

(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair  Value
Debt Securities HTM:
December 31, 2023
U.S. government agencies	$	1	$	—	$	—	$	1
U.S. government-sponsored entities	68		—		—		68
Residential MBS:
Agency MBS	1,057		2		(101)		958
Agency collateralized mortgage obligations	824		—		(104)		720
Agency commercial MBS	929		4		(43)		890
States of the U.S. and political subdivisions (municipals)	1,017		2		(77)		942
Other debt securities	15		—		(1)		14
Total debt securities HTM	$	3,911	$	8	$	(326)	$	3,593

There were no significant gross gains or gross losses realized on securities during the six months ended June 30, 2024 or 2023. In the fourth quarter of 2023, we sold $648.7 million of AFS securities resulting in a realized loss of $67.4 million as part of a proactive balance sheet management strategy. Unrealized losses on the AFS and HTM portfolios are due to the increase in market interest rates with 85.0% of these securities backed or sponsored by the U.S. government as of June 30, 2024.

15

As of June 30, 2024, the amortized cost and fair value of debt securities, by contractual maturities, were as follows:

TABLE 3.3

	Available for Sale				Held to Maturity
(in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	112	$	110	$	3	$	3
Due after one year but within five years	461		456		86		82
Due after five years but within ten years	33		32		224		207
Due after ten years	30		30		740		661
	636		628		1,053		953
Residential MBS:
Agency MBS	951		886		977		872
Agency collateralized mortgage obligations	871		758		769		661
Agency commercial MBS	1,127		1,092		1,094		1,046
Total debt securities	$	3,585	$	3,364	$	3,893	$	3,532

Actual maturities may differ from contractual terms because security issuers may have the right to call or prepay obligations with or without penalties. Periodic principal payments are received on residential MBS based on the payment patterns of the underlying collateral.

Following is information relating to securities pledged:

TABLE 3.4

(dollars in millions)	June 30, 2024			December 31, 2023
Securities pledged (carrying value):
To secure public deposits, trust deposits and for other purposes as required by law	$	5,805		$	6,190
As collateral for short-term borrowings	225			250
Securities pledged as a percent of total securities	83.1		%	89.9		%

16

Following are summaries of the fair values of AFS debt securities in an unrealized loss position for which an ACL has not been recorded, segregated by security type and length of time in a continuous loss position:

TABLE 3.5

	Less than 12 Months					12 Months or More					Total
(dollars in millions)	#	Fair  Value		Unrealized Losses		#	Fair  Value		Unrealized Losses		#	Fair  Value		Unrealized Losses
Debt Securities AFS
June 30, 2024
U.S. Treasury	1	$	49	$	—	2	$	74	$	(2)	3	$	123	$	(2)
U.S. government agencies	—	—		—		13	31		—		13	31		—
U.S. government-sponsored entities	3	74		—		7	123		(4)		10	197		(4)
Residential MBS:
Agency MBS	6	179		(1)		104	659		(64)		110	838		(65)
Agency collateralized mortgage obligations	—	—		—		69	758		(113)		69	758		(113)
Agency commercial MBS	16	494		(5)		20	361		(33)		36	855		(38)
States of the U.S. and political subdivisions (municipals)	—	—		—		12	26		(2)		12	26		(2)
Other debt securities	1	5		—		7	18		(1)		8	23		(1)
Total	27	$	801	$	(6)	234	$	2,050	$	(219)	261	$	2,851	$	(225)
	Less than 12 Months					12 Months or More					Total
(dollars in millions)	#	Fair  Value		Unrealized Losses		#	Fair  Value		Unrealized Losses		#	Fair  Value		Unrealized Losses
Debt Securities AFS
December 31, 2023
U.S. Treasury	—	$	—	$	—	2	$	73	$	(2)	2	$	73	$	(2)
U.S. government agencies	2	4		—		12	36		—		14	40		—
U.S. government-sponsored entities	1	25		—		7	123		(4)		8	148		(4)
Residential MBS:
Agency MBS	—	—		—		104	750		(62)		104	750		(62)
Agency collateralized mortgage obligations	—	—		—		71	832		(114)		71	832		(114)
Agency commercial MBS	1	32		—		20	377		(30)		21	409		(30)
States of the U.S. and political subdivisions (municipals)	—	—		—		13	27		(3)		13	27		(3)
Other debt securities	2	9		—		7	17		(1)		9	26		(1)
Total	6	$	70	$	—	236	$	2,235	$	(216)	242	$	2,305	$	(216)

We evaluated the AFS debt securities that were in an unrealized loss position at June 30, 2024. Based on the credit ratings and implied government guarantee for these securities, we concluded the loss position is temporary and caused by the significant movement of interest rates since 2022 and does not reflect any expected credit losses. We do not intend to sell these AFS debt securities and it is not more likely than not that we will be required to sell these securities before the recovery of their amortized cost basis.

17

Credit Quality Indicators

We use credit ratings and the most recent financial information to help evaluate the credit quality of our credit-related AFS and HTM securities portfolios. Management reviews the credit profile of each issuer on an annual basis, and more frequently as needed. Based on the nature of the issuers and current conditions, we have determined that securities backed by the UST, Fannie Mae, Freddie Mac, FHLB, Ginnie Mae, and the SBA have zero expected credit loss.

Our municipal bond portfolio, with a carrying amount of $1.0 billion as of June 30, 2024 is highly rated with an average rating of AA and over 99% of the portfolio rated A or better. All of the securities in the municipal portfolio are general obligation bonds. Geographically, municipal bonds support our primary footprint as 60% of the securities are from municipalities located in the primary states within which we conduct business. The average holding size of the securities in the municipal bond portfolio is $2.5 million. In addition to the strong stand-alone ratings, 61% of the municipal bonds have some formal credit enhancement (e.g., insurance) that strengthens the creditworthiness of the bond.

The ACL on the HTM municipal bond portfolio is calculated on each bond using:

•The bond’s underlying credit rating, time to maturity and exposure amount;

•Credit enhancements that improve the bond’s credit rating (e.g., insurance); and

•Moody’s U.S. Bond Defaults and Recoveries, 1970-2022 study.

By using these components, we derive the expected credit loss on the HTM general obligation municipal bond portfolio. We further refine the expected credit loss by factoring in economic forecast data using our Commercial and Industrial Non-Manufacturing loan portfolio forecast adjustment as derived through our assessment of the loan portfolio as a proxy for our municipal bond portfolio.

Our corporate bond portfolio, with a carrying amount of $56.1 million as of June 30, 2024 primarily consists of subordinated debentures of banks within our footprint. The average holding size of the securities in the corporate bond portfolio is $3.1 million.

The ACL on the HTM corporate bond portfolio is calculated using:

•The bond’s credit rating, time to maturity and exposure amount;

•Moody’s Annual Default Study, 02/26/2024; and

•The most recent financial statements.

By using these components, we derive the expected credit loss on the HTM corporate bond portfolio. We further refine the expected credit loss by factoring in economic forecast data using our bank-wide loan portfolio forecast adjustment as derived through our assessment of FNBPA's loan portfolio as a proxy for our corporate bond portfolio.

For the year-to-date periods ending June 30, 2024 and 2023, we had no significant provision expense and no charge-offs or recoveries for the securities portfolio. The ACL on the HTM portfolio was $0.27 million, consisting of $0.06 million relating to the municipal bond portfolio and $0.21 million relating to other debt securities, as of June 30, 2024, and $0.06 million relating to the municipal bond portfolio and $0.22 million relating to other debt securities as of December 31, 2023. The AFS securities portfolios did not have an ACL at June 30, 2024 or December 31, 2023 and there were no securities that were past due or on non-accrual at either date.

18

NOTE 4.    LOANS AND LEASES

Accrued interest receivable on loans and leases, which totaled $141.6 million at June 30, 2024 and $128.6 million at December 31, 2023, is excluded from the estimate of credit losses and assessed separately in other assets in the Consolidated Balance Sheets for both periods and is not included in the following tables.

Loans and Leases by Portfolio Segment

Following is a summary of total loans and leases, net of unearned income:

TABLE 4.1

(in millions)	June 30, 2024		December 31, 2023
Commercial real estate	$	12,664	$	12,305
Commercial and industrial	7,597		7,482
Commercial leases	683		599
Other	145		110
Total commercial loans and leases	21,089		20,496
Direct installment	2,700		2,741
Residential mortgages	7,459		6,640
Indirect installment	1,188		1,149
Consumer lines of credit	1,321		1,297
Total consumer loans	12,668		11,827
Total loans and leases, net of unearned income	$	33,757	$	32,323

The remaining accretable discount included in the amortized cost of acquired loans was $35.8 million and $42.6 million at June 30, 2024 and December 31, 2023, respectively.

The loans and leases portfolio categories are comprised of the following types of loans, where in each case the LGD is dependent on the nature and value of the respective collateral:

•Commercial real estate includes both owner-occupied and non-owner-occupied loans, including construction loans, secured by commercial properties where operational cash flows on owner-occupied properties, including rents paid by stand-alone business customers, or rents received by our borrowers from their tenant(s) on both a property and global basis are the primary default risk drivers;

•Commercial and industrial includes loans to businesses that are not secured by real estate where the borrower's leverage and cash flows from operations are the primary default risk drivers;

•Commercial leases consist of leases for new or used equipment where the borrower's cash flow from operations is the primary default risk driver;

•Other is comprised primarily of credit cards and mezzanine loans where the borrower's cash flow from operations is the primary default risk driver;

•Direct installment is comprised of fixed-rate, closed-end consumer loans for personal, family or household use, such as home equity loans and automobile loans where the primary default risk driver is the borrower's employment status and income;

•Residential mortgages consist of conventional and jumbo mortgage loans, including construction loans, for 1-4 family properties where the primary default risk driver is the borrower's employment status and income;

•Indirect installment is comprised of loans originated by approved third parties and underwritten by us, primarily automobile loans where the primary default risk driver is the borrower's employment status and income; and

19

•Consumer lines of credit include home equity lines of credit and consumer lines of credit that are either unsecured or secured by collateral other than home equity where the primary default risk driver is the borrower's employment status and income.

The loans and leases portfolio consists principally of loans to individuals and small- and medium-sized businesses within our primary market in seven states and the District of Columbia. Our primary market coverage spans several major metropolitan areas including: Pittsburgh, Pennsylvania; Baltimore, Maryland; Cleveland, Ohio; Washington, D.C.; Charlotte, Raleigh, Durham and the Piedmont Triad (Winston-Salem, Greensboro and High Point) in North Carolina; and Charleston, South Carolina.

The following table shows occupancy information relating to commercial real estate loans:

TABLE 4.2

(dollars in millions)	June 30, 2024		December 31, 2023
Commercial real estate:
Percent owner-occupied	29.5	%	29.0	%
Percent non-owner-occupied	70.5		71.0

Credit Quality

We monitor the credit quality of our loan portfolio using several performance measures based on payment activity and borrower performance. We use an internal risk rating assigned to a commercial loan or lease at origination, summarized below.

TABLE 4.3

Rating Category	Definition
Pass	in general, the condition of the borrower and the performance of the loan is satisfactory or better
Special Mention	in general, the condition of the borrower has deteriorated, requiring an increased level of monitoring
Substandard	in general, the condition of the borrower has significantly deteriorated and the performance of the loan could further deteriorate if deficiencies are not corrected
Doubtful	in general, the condition of the borrower has significantly deteriorated and the collection in full of both principal and interest is highly questionable or improbable

The use of these internally assigned credit quality categories within the commercial loan and lease portfolio permits our use of transition matrices to establish a basis which is then impacted by quantitative inputs from our econometric model forecasts over the R&S period. Our internal credit risk grading system is based on past experiences with similarly graded loans and leases and conforms to regulatory categories. In general, loan and lease risk ratings within each category are reviewed on an ongoing basis according to our policy for each class of loans and leases. Each quarter, we analyze the resulting ratings, as well as other external statistics and factors such as delinquency, to track the migration performance of the commercial loan and lease portfolio. Loans and leases within the Pass credit category or that migrate toward the Pass credit category generally have a lower risk of loss compared to loans and leases that migrate toward the Substandard or Doubtful credit categories. Accordingly, we apply higher risk factors to Substandard and Doubtful credit categories.

20

The following table summarizes the designated loan rating category by loan class including term loans on an amortized cost basis by origination year and year-to-date gross charge-offs by originating year:

TABLE 4.4

June 30, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
(in millions)
COMMERCIAL
Commercial Real Estate:
Risk Rating:
Pass	$	708	$	1,570	$	2,133	$	2,187	$	1,338	$	3,515	$	176	$	11,627
Special Mention	1		14		155		81		140		241		35		667
Substandard	6		16		56		73		20		196		3		370
Total commercial real estate	715		1,600		2,344		2,341		1,498		3,952		214		12,664
Commercial real estate current period gross charge-offs	—		0.3		0.6		0.3		0.1		9.0		—		10.3
Commercial and Industrial:
Risk Rating:
Pass	490		1,360		1,169		671		466		753		2,061		6,970
Special Mention	1		31		37		119		14		70		36		308
Substandard	1		43		20		50		6		81		118		319
Total commercial and industrial	492		1,434		1,226		840		486		904		2,215		7,597
Commercial and industrial current period gross charge-offs	—		0.5		1.0		1.0		0.9		5.2		—		8.6
Commercial Leases:
Risk Rating:
Pass	179		207		121		69		36		48		—		660
Special Mention	—		1		—		—		—		1		—		2
Substandard	—		7		2		5		6		1		—		21
Total commercial leases	179		215		123		74		42		50		—		683
Commercial leases current period gross charge-offs	—		—		—		—		—		0.2		—		0.2
Other Commercial:
Risk Rating:
Pass	8		54		—		—		—		6		77		145
Total other commercial	8		54		—		—		—		6		77		145
Other commercial current period gross charge-offs	—		—		—		—		—		1.9		—		1.9
Total commercial loans and leases	1,394		3,303		3,693		3,255		2,026		4,912		2,506		21,089

21

June 30, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
(in millions)
CONSUMER
Direct Installment:
Current	165		310		667		732		366		447		—		2,687
Past due	—		1		1		1		1		9		—		13
Total direct installment	165		311		668		733		367		456		—		2,700
Direct installment current period gross charge-offs	—		0.1		0.1		0.1		—		0.3		—		0.6
Residential Mortgages:
Current	918		1,499		1,642		1,469		763		1,109		1		7,401
Past due	1		8		6		6		3		34		—		58
Total residential mortgages	919		1,507		1,648		1,475		766		1,143		1		7,459
Residential mortgages current period gross charge-offs	—		0.1		—		—		—		0.1		—		0.2
Indirect Installment:
Current	256		269		323		188		72		60		—		1,168
Past due	—		3		7		7		2		1		—		20
Total indirect installment	256		272		330		195		74		61		—		1,188
Indirect installment current period gross charge-offs	—		0.8		2.5		1.6		0.3		0.2		—		5.4
Consumer Lines of Credit:
Current	5		34		56		13		3		117		1,078		1,306
Past due	—		—		1		1		—		11		2		15
Total consumer lines of credit	5		34		57		14		3		128		1,080		1,321
Consumer lines of credit current period gross charge-offs	—		—		0.1		—		—		0.5		—		0.6
Total consumer loans	1,345		2,124		2,703		2,417		1,210		1,788		1,081		12,668
Total loans and leases	$	2,739	$	5,427	$	6,396	$	5,672	$	3,236	$	6,700	$	3,587	$	33,757
Total charge-offs	$	—	$	1.8	$	4.3	$	3.0	$	1.3	$	17.4	$	—	$	27.8

22

December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
(in millions)
COMMERCIAL
Commercial Real Estate:
Risk Rating:
Pass	$	1,508	$	2,133	$	2,298	$	1,449	$	1,131	$	2,711	$	230	$	11,460
Special Mention	10		66		76		136		105		197		5		595
Substandard	5		27		27		13		59		104		15		250
Total commercial real estate	1,523		2,226		2,401		1,598		1,295		3,012		250		12,305
Commercial real estate current period gross charge-offs	0.2		0.4		0.4		0.7		0.2		10.5		—		12.4
Commercial and Industrial:
Risk Rating:
Pass	1,509		1,369		844		575		370		585		1,773		7,025
Special Mention	12		3		56		2		12		35		35		155
Substandard	34		26		62		9		24		58		89		302
Total commercial and industrial	1,555		1,398		962		586		406		678		1,897		7,482
Commercial and industrial current period gross charge-offs	0.1		0.3		1.0		1.0		2.2		46.6		—		51.2
Commercial Leases:
Risk Rating:
Pass	247		134		82		47		24		41		—		575
Special Mention	—		1		—		—		—		1		—		2
Substandard	7		3		4		7		1		—		—		22
Total commercial leases	254		138		86		54		25		42		—		599
Commercial leases current period gross charge-offs	—		—		—		—		—		—		—		—
Other Commercial:
Risk Rating:
Pass	39		—		—		—		—		8		63		110
Total other commercial	39		—		—		—		—		8		63		110
Other commercial current period gross charge-offs	—		—		—		—		—		4.5		—		4.5
Total commercial loans and leases	3,371		3,762		3,449		2,238		1,726		3,740		2,210		20,496

23

December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
(in millions)
CONSUMER
Direct Installment:
Current	340		712		784		392		136		364		—		2,728
Past due	—		1		—		1		1		10		—		13
Total direct installment	340		713		784		393		137		374		—		2,741
Direct installment current period gross charge-offs	—		0.2		0.1		0.1		—		0.2		—		0.6
Residential Mortgages:
Current	1,421		1,686		1,516		799		343		819		1		6,585
Past due	3		6		5		3		3		35		—		55
Total residential mortgages	1,424		1,692		1,521		802		346		854		1		6,640
Residential mortgages current period gross charge-offs	—		—		—		—		—		0.7		—		0.7
Indirect Installment:
Current	311		387		238		100		42		49		—		1,127
Past due	2		8		8		2		1		1		—		22
Total indirect installment	313		395		246		102		43		50		—		1,149
Indirect installment current period gross charge-offs	0.4		4.3		3.7		0.6		0.3		1.4		—		10.7
Consumer Lines of Credit:
Current	38		61		14		2		3		117		1,044		1,279
Past due	—		1		1		—		—		13		3		18
Total consumer lines of credit	38		62		15		2		3		130		1,047		1,297
Consumer lines of credit current period gross charge-offs	0.1		—		—		—		—		0.9		—		1.0
Total consumer loans	2,115		2,862		2,566		1,299		529		1,408		1,048		11,827
Total loans and leases	$	5,486	$	6,624	$	6,015	$	3,537	$	2,255	$	5,148	$	3,258	$	32,323
Total charge-offs	$	0.8	$	5.2	$	5.2	$	2.4	$	2.7	$	64.8	$	—	$	81.1

We use delinquency transition matrices within the consumer and other loan classes to establish the basis for the R&S forecast portion of the credit risk. Each month, management analyzes payment and volume activity, FICO scores and Debt-to-Income (DTI) scores and other external factors such as unemployment, to determine how consumer loans are performing.

24

Non-Performing and Past Due

The following table provides an analysis of the aging of loans by class.

TABLE 4.5

(in millions)	30-89 Days Past Due		> 90 Days Past Due and Still Accruing		Non- Accrual		Total Past Due		Current		Total Loans and Leases		Non-accrual with No ACL
June 30, 2024
Commercial real estate	$	10	$	—	$	33	$	43	$	12,621	$	12,664	$	19
Commercial and industrial	9		—		45		54		7,543		7,597		19
Commercial leases	2		—		3		5		678		683		—
Other	3		1		2		6		139		145		—
Total commercial loans and leases	24		1		83		108		20,981		21,089		38
Direct installment	7		1		5		13		2,687		2,700		—
Residential mortgages	39		7		12		58		7,401		7,459		—
Indirect installment	18		—		2		20		1,168		1,188		—
Consumer lines of credit	7		2		6		15		1,306		1,321		—
Total consumer loans	71		10		25		106		12,562		12,668		—
Total loans and leases	$	95	$	11	$	108	$	214	$	33,543	$	33,757	$	38

(in millions)	30-89 Days Past Due		> 90 Days Past Due and Still Accruing		Non- Accrual		Total Past Due		Current		Total Loans and Leases		Non-accrual with No ACL
December 31, 2023
Commercial real estate	$	21	$	—	$	42	$	63	$	12,242	$	12,305	$	18
Commercial and industrial	9		—		39		48		7,434		7,482		7
Commercial leases	2		—		3		5		594		599		—
Other	1		1		—		2		108		110		—
Total commercial loans and leases	33		1		84		118		20,378		20,496		25
Direct installment	7		1		5		13		2,728		2,741		—
Residential mortgages	38		7		10		55		6,585		6,640		—
Indirect installment	19		1		2		22		1,127		1,149		—
Consumer lines of credit	10		2		6		18		1,279		1,297		—
Total consumer loans	74		11		23		108		11,719		11,827		—
Total loans and leases	$	107	$	12	$	107	$	226	$	32,097	$	32,323	$	25

25

Following is a summary of non-performing assets:

TABLE 4.6

(dollars in millions)	June 30, 2024			December 31, 2023
Non-accrual loans	$	108		$	107
Total non-performing loans and leases	108			107
Other real estate owned	3			3
Total non-performing assets	$	111		$	110
Asset quality ratios:
Non-performing loans and leases / total loans and leases	0.32		%	0.33		%
Non-performing assets plus 90 days or more past due / total loans and leases plus OREO	0.36			0.38

The carrying value of residential-secured consumer OREO held as a result of obtaining physical possession upon completion of a foreclosure or through completion of a deed in lieu of foreclosure amounted to $1.2 million at both June 30, 2024 and December 31, 2023. The recorded investment of residential-secured consumer OREO for which formal foreclosure proceedings are in process at June 30, 2024 and December 31, 2023 totaled $12.9 million and $9.4 million, respectively.

Approximately $65.6 million of commercial loans are collateral dependent at June 30, 2024. Repayment is expected to be substantially made through the operation or sale of the collateral on the loan. These loans are primarily secured by business assets or commercial real estate.

Loan Modifications

During the period, there are loans whose contractual terms have been modified in a manner that grants a concession to a borrower experiencing financial difficulties. These modifications typically result from loss mitigation activities and could include a term extension, interest rate reduction, principal forgiveness and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of collateral. Accrued interest receivable on loan modifications totaled $0.05 million and $0.08 million at June 30, 2024 and June 30, 2023, respectively, and is excluded from the amortized cost of loan modifications in the tables that follow.

26

The following table shows the amortized cost basis at the end of the reporting period of the loans modified during the period to borrowers experiencing financial difficulty, disaggregated by class of financing receivable, type of concession granted and the financial effect of the modifications made to borrowers experiencing financial difficulty:

TABLE 4.7

(dollars in millions)	Amortized Cost Basis		% of Total Class of Financing Receivable		Financial Effect
Three Months Ended June 30, 2024
Term Extension
Direct installment	$	0.7	0.03	%	The modified loans had an average increase in term of 41 months extending the maturity date.
Residential mortgages	3.4		0.05		The modified loans had an average increase in term of 24 months extending the maturity date.
Consumer lines of credit	0.5		0.04		The modified loans had an average increase in term of 162 months extending the maturity date.
Total	4.6
Term Extension and Rate Reduction
Residential mortgages	0.2		—		Multiple modifications were made with no material financial effect.
Consumer lines of credit	0.2		0.02		Multiple modifications were made with no material financial effect.
Total	0.4
Other
Commercial real estate	0.1		—		3 to 9 month payment deferrals with no income being earned on these loans.
Total	0.1
Total Outstanding Modified	$	5.1

27

(dollars in millions)	Amortized Cost Basis		% of Total Class of Financing Receivable		Financial Effect
Six Months Ended June 30, 2024
Term Extension
Direct installment	$	0.8	0.03	%	The modified loans had an average increase in term of 61 months, extending the maturity date.
Residential mortgages	4.1		0.05		The modified loans had an average increase in term of 28 months, extending the maturity date.
Consumer lines of credit	1.0		0.08		The modified loans had an average increase in term of 208 months, extending the maturity date.
Total	5.9
Rate Reduction
Residential mortgages	0.1		—		The term was extended, with a weighted average yield reduction of 100 basis points.
Total	0.1
Term Extension and Rate Reduction
Commercial real estate	0.9		0.01		Multiple modifications were made with no material financial effect.
Residential mortgages	0.8		0.01		Multiple modifications were made with no material financial effect.
Consumer lines of credit	0.2		0.02		Multiple modifications were made with no material financial effect.
Total	1.9
Balloon Payment
Commercial real estate	0.6		—		Multiple modifications were made with no material financial effect.
Total	0.6
Other
Commercial real estate	4.2		0.03		3 to 12 month payment deferrals with no income being earned on these loans.
Commercial and industrial	0.6		0.01		Multiple modifications were made with no material financial effect.
Total	4.8
Total Outstanding Modified	$	13.3

28

(dollars in millions)	Amortized Cost Basis		% of Total Class of Financing Receivable		Financial Effect
Three Months Ended June 30, 2023
Term Extension
Commercial real estate	$	11.2	0.10	%	The modified loans had an average increase in term of 22 months, extending the maturity date.
Direct installment	0.3		0.01		The repayment on the loans modified were extended, lowering the monthly repayment.
Residential mortgages	1.5		0.02		The modified loans had an average increase in term of 138 months, extending the maturity date.
Total	13.0
Term Extension and Rate Reduction
Commercial and industrial	0.1		—		The term was extended, with a weighted average yield reduction of 487 basis points.
Direct installment	0.2		0.01		The modified loans had an average increase in term of 445 months, extending the maturity date.
Residential mortgages	0.4		0.01		The modified loans had an average increase in term of 151 months, extending the maturity date.
Consumer lines of credit	0.6		0.05		The term was extended, with a weighted average yield reduction of 326 basis points.
Total	1.3
Other
Consumer lines of credit	0.2		0.02		Multiple modifications were made with no material financial effect.
Total	0.2
Total Outstanding Modified	$	14.5

29

(dollars in millions)	Amortized Cost Basis		% of Total Class of Financing Receivable		Financial Effect
Six Months Ended June 30, 2023
Term Extension
Commercial real estate	$	11.5	0.10	%	The modified loans had an average increase in term of 22 months, extending the maturity date.
Commercial and industrial	2.3		0.03		The modified loans had an average increase in term of 12 months, extending the maturity date.
Direct installment	0.4		0.01		The repayment on the loans modified were extended, lowering the monthly repayment.
Residential mortgages	1.6		0.03		The modified loans had an average increase in term of 141 months, extending the maturity date.
Consumer lines of credit	0.2		0.02		The repayment on the loans modified was extended, lowering the monthly repayment.
Total	16.0
Term Extension and Rate Reduction
Commercial and industrial	0.2		—		The term was extended, with a weighted average yield reduction of 487 basis points.
Direct installment	0.3		0.01		The modified loans had an average increase in term of 363 months, extending the maturity date.
Residential mortgages	0.7		0.01		The term was extended, with a weighted average yield reduction of 278 basis points.
Consumer lines of credit	0.6		0.05		The term was extended, with a weighted average yield reduction of 326 basis points.
Total	1.8
Other
Commercial real estate	0.3		—		Multiple modifications were made with no material financial effect.
Residential mortgages	0.1		—		Multiple modifications were made with no material financial effect.
Consumer lines of credit	0.2		0.02		Multiple modifications were made with no material financial effect.
Total	0.6
Total Outstanding Modified	$	18.4

Some loan modifications may not ultimately result in the full collection of principal and interest, as modified, and may result in potential incremental losses which are factored into the ACL. There were no additional funds committed to borrowers whose loans were modified during the first six months of 2024.

Commercial loans over $1.0 million whose terms have been modified may be placed on non-accrual, individually analyzed and measured based on the fair value of the underlying collateral. Our ACL includes specific reserves for commercial loans modified. There were $0.5 million and $5.3 million in specific reserves for commercial loans modified at June 30, 2024 and December 31, 2023, respectively, and pooled reserves for individual loans of $1.9 million and $2.0 million for those same periods, respectively, based on loan segment LGD. Upon default, the amount of the recorded investment of the modified loan balance in excess of the fair value of the collateral, less estimated selling costs, is generally considered a confirmed loss and is charged-off against the ACL.

All other classes of loans whose terms have been modified are pooled and measured based on the loan segment LGD. Our ACL included pooled reserves for these classes of loans of $4.1 million and $3.8 million as of June 30, 2024 and December 31, 2023, respectively. Upon default of an individual loan, our charge-off policy is followed for that class of loan.

30

Following is a summary of loans modified in a manner that grants a concession to a borrower experiencing financial difficulties, by class, for which there was a payment default, excluding loans that have been paid off and/or sold. Default occurs when a loan is 90 days or more past due or in non-accrual and is within 12 months of restructuring.

TABLE 4.8

Amortized cost basis of modified financing receivables that subsequently defaulted:
(in millions)	Term Extension		Term Extension and Rate Reduction		Balloon Payment		Other		Total Outstanding Modified
Three Months Ended June 30, 2024
Commercial real estate	$	0.4	$	—	$	—	$	0.2	$	0.6
Commercial and industrial	—		—		—		0.9		0.9
Total commercial loans and leases	0.4		—		—		1.1		1.5
Residential mortgages	1.5		—		—		—		1.5
Total consumer loans	1.5		—		—		—		1.5
Total	$	1.9	$	—	$	—	$	1.1	$	3.0
Six Months Ended June 30, 2024
Commercial real estate	$	0.7	$	0.9	$	0.6	$	8.8	$	11.0
Commercial and industrial	20.3		0.2		—		1.6		22.1
Total commercial loans and leases	21.0		1.1		0.6		10.4		33.1
Residential mortgages	1.7		—		—		—		1.7
Total consumer loans	1.7		—		—		—		1.7
Total	$	22.7	$	1.1	$	0.6	$	10.4	$	34.8

(in millions)	Term Extension		Term Extension and Rate Reduction		Other		Total Outstanding Modified
Three Months Ended June 30, 2023
Commercial real estate	$	0.4	$	—	$	0.1	$	0.5
Commercial and industrial	—		0.1		—		0.1
Total commercial loans and leases	0.4		0.1		0.1		0.6
Total	$	0.4	$	0.1	$	0.1	$	0.6
Six Months Ended June 30, 2023
Commercial real estate	$	0.4	$	—	$	0.7	$	1.1
Commercial and industrial	1.5		0.2		—		1.7
Total commercial loans and leases	1.9		0.2		0.7		2.8
Residential mortgages	—		0.3		—		0.3
Consumer lines of credit	0.1		—		—		0.1
Total consumer loans	0.1		0.3		—		0.4
Total	$	2.0	$	0.5	$	0.7	$	3.2

31

We closely monitor the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of our modification efforts. The following table depicts the performance of loans that have been modified in the last 12 months:

TABLE 4.9

Payment status - amortization cost basis:
(in millions)	Current		30-89 Days Past Due		90+ Days Past Due
June 30, 2024
Commercial real estate	$	14.8	$	—	$	—
Commercial and industrial	18.5		—		—
Total commercial loans and leases	33.3		—		—
Direct installment	1.3		0.8		—
Residential mortgages	3.3		2.9		1.2
Consumer lines of credit	1.6		0.4		—
Total consumer loans	6.2		4.1		1.2
Total	$	39.5	$	4.1	$	1.2
(in millions)	Current		30-89 Days Past Due		90+ Days Past Due
June 30, 2023
Commercial real estate	$	11.9	$	—	$	—
Commercial and industrial	1.7		0.8		—
Total commercial loans and leases	13.6		0.8		—
Direct installment	0.6		0.1		—
Residential mortgages	1.8		0.5		—
Consumer lines of credit	1.0		—		—
Total consumer loans	3.4		0.6		—
Total	$	17.0	$	1.4	$	—

NOTE 5.    ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES

The ACL is maintained for credit losses expected in the existing loan and lease portfolio and is presented as a reserve against loans and leases on the Consolidated Balance Sheets. Loan and lease losses are charged off against the ACL, with recoveries of amounts previously charged off credited to the ACL. Provisions for credit losses are charged to operations based on management’s periodic evaluation of the appropriate level of the ACL.

32

Following is a summary of changes in the ACL, by loan and lease class:

TABLE 5.1

(in millions)	Balance at Beginning of Period		Charge- Offs		Recoveries		Net (Charge- Offs) Recoveries		Provision for Credit Losses		Balance at End of Period
Three Months Ended June 30, 2024
Commercial real estate	$	161.9	$	(3.2)	$	0.8	$	(2.4)	$	(1.8)	$	157.7
Commercial and industrial	86.9		(4.7)		1.7		(3.0)		9.6		93.5
Commercial leases	22.4		—		0.1		0.1		0.4		22.9
Other	4.1		(1.0)		0.6		(0.4)		0.3		4.0
Total commercial loans and leases	275.3		(8.9)		3.2		(5.7)		8.5		278.1
Direct installment	30.6		(0.4)		0.2		(0.2)		0.5		30.9
Residential mortgages	79.3		(0.2)		0.1		(0.1)		9.0		88.2
Indirect installment	12.5		(2.5)		0.9		(1.6)		2.2		13.1
Consumer lines of credit	8.6		(0.3)		0.1		(0.2)		0.1		8.5
Total consumer loans	131.0		(3.4)		1.3		(2.1)		11.8		140.7
Total allowance for credit losses on loans and leases	406.3		(12.3)		4.5		(7.8)		20.3		418.8
Allowance for unfunded loan commitments	21.9		—		—		—		(0.1)		21.8
Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments	$	428.2	$	(12.3)	$	4.5	$	(7.8)	$	20.2	$	440.6
Six Months Ended June 30, 2024
Commercial real estate	$	166.6	$	(10.3)	$	1.2	$	(9.1)	$	0.2	$	157.7
Commercial and industrial	87.8		(8.6)		2.5		(6.1)		11.8		93.5
Commercial leases	21.2		(0.2)		0.1		(0.1)		1.8		22.9
Other	3.7		(1.9)		0.9		(1.0)		1.3		4.0
Total commercial loans and leases	279.3		(21.0)		4.7		(16.3)		15.1		278.1
Direct installment	33.8		(0.6)		0.4		(0.2)		(2.7)		30.9
Residential mortgages	70.5		(0.2)		0.1		(0.1)		17.8		88.2
Indirect installment	12.8		(5.4)		1.5		(3.9)		4.2		13.1
Consumer lines of credit	9.2		(0.6)		0.5		(0.1)		(0.6)		8.5
Total consumer loans	126.3		(6.8)		2.5		(4.3)		18.7		140.7
Total allowance for credit losses on loans and leases	405.6		(27.8)		7.2		(20.6)		33.8		418.8
Allowance for unfunded loan commitments	21.5		—		—		—		0.3		21.8
Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments	$	427.1	$	(27.8)	$	7.2	$	(20.6)	$	34.1	$	440.6

33

(in millions)	Balance at Beginning of Period		Charge- Offs		Recoveries		Net (Charge- Offs) Recoveries		Provision for Credit Losses		Balance at End of Period
Three Months Ended June 30, 2023
Commercial real estate	$	159.2	$	(1.8)	$	1.3	$	(0.5)	$	(4.5)	$	154.2
Commercial and industrial	101.7		(5.5)		0.7		(4.8)		17.4		114.3
Commercial leases	14.8		—		—		—		0.4		15.2
Other	4.0		(1.6)		0.2		(1.4)		1.2		3.8
Total commercial loans and leases	279.7		(8.9)		2.2		(6.7)		14.5		287.5
Direct installment	36.2		(0.1)		0.1		—		(0.6)		35.6
Residential mortgages	60.4		(0.2)		—		(0.2)		3.2		63.4
Indirect installment	16.6		(2.2)		0.5		(1.7)		1.7		16.6
Consumer lines of credit	10.5		(0.3)		0.2		(0.1)		(0.8)		9.6
Total consumer loans	123.7		(2.8)		0.8		(2.0)		3.5		125.2
Total allowance for credit losses on loans and leases	403.4		(11.7)		3.0		(8.7)		18.0		412.7
Allowance for unfunded loan commitments	20.5		—		—		—		0.5		21.0
Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments	$	423.9	$	(11.7)	$	3.0	$	(8.7)	$	18.5	$	433.7
Six Months Ended June 30, 2023
Commercial real estate	$	162.1	$	(8.3)	$	2.3	$	(6.0)	$	(1.9)	$	154.2
Commercial and industrial	102.1		(11.3)		1.6		(9.7)		21.9		114.3
Commercial leases	13.5		—		—		—		1.7		15.2
Other	4.0		(2.4)		0.5		(1.9)		1.7		3.8
Total commercial loans and leases	281.7		(22.0)		4.4		(17.6)		23.4		287.5
Direct installment	35.9		(0.4)		0.3		(0.1)		(0.2)		35.6
Residential mortgages	55.5		(0.6)		0.2		(0.4)		8.3		63.4
Indirect installment	17.3		(4.8)		1.1		(3.7)		3.0		16.6
Consumer lines of credit	11.3		(0.6)		0.5		(0.1)		(1.6)		9.6
Total consumer loans	120.0		(6.4)		2.1		(4.3)		9.5		125.2
Total allowance for credit losses on loans and leases	401.7		(28.4)		6.5		(21.9)		32.9		412.7
Allowance for unfunded loan commitments	21.4		—		—		—		(0.4)		21.0
Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments	$	423.1	$	(28.4)	$	6.5	$	(21.9)	$	32.5	$	433.7

Following is a summary of changes in the AULC by portfolio segment:

TABLE 5.2

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
(in millions)
Balance at beginning of period	$	21.9	$	20.5	$	21.5	$	21.4
Provision for unfunded loan commitments and letters of credit:
Commercial portfolio	(0.1)		0.5		0.4		(0.4)
Consumer portfolio	—		—		(0.1)		—
Balance at end of period	$	21.8	$	21.0	$	21.8	$	21.0

34

The model used to calculate the ACL is dependent on the portfolio composition and credit quality, as well as historical experience, current conditions and forecasts of economic conditions and interest rates. Specifically, the following considerations are incorporated into the ACL calculation:

•a third-party macroeconomic forecast scenario;

•a 24-month R&S forecast period for macroeconomic factors with a reversion to the historical mean on a straight-line basis over a 12-month period; and

•the historical through-the-cycle mean was calculated using an expanded period to include a prior recessionary period.

At June 30, 2024 and December 31, 2023, we utilized a third-party consensus macroeconomic forecast reflecting the current and projected macroeconomic environment. For our ACL calculation at June 30, 2024, the macroeconomic variables that we utilized included, but were not limited to: (i) the purchase only Housing Price Index, which increases 7.2% over our R&S forecast period, (ii) a Commercial Real Estate Price Index, which increases 5.9% over our R&S forecast period, (iii) S&P Volatility, which increases 12.3% in 2024 and decreases 0.8% in 2025 and (iv) personal and business bankruptcies, which increase steadily over the R&S forecast period but average below the historical through the cycle period. Macroeconomic variables that we utilized for our ACL calculation as of December 31, 2023 included, but were not limited to: (i) the purchase only Housing Price Index, which increases 5.3% over our R&S forecast period, (ii) a Commercial Real Estate Price Index, which increases 0.1% over our R&S forecast period, (iii) S&P Volatility, which decreases 4.0% in 2024 and 2.9% in 2025 and (iv) bankruptcies, which increase steadily over the R&S forecast period but average below the historical through the cycle period.

The ACL on loans and leases of $418.8 million at June 30, 2024 increased $13.2 million, or 3.3%, from December 31, 2023. Our ending ACL coverage ratio at June 30, 2024 was 1.24%, compared to 1.25% at December 31, 2023. Total provision for credit losses for the three months ended June 30, 2024 was $20.2 million compared to $18.5 million for the same period of 2023 which included a $13 million specific reserve established for a single $32 million commercial and industrial loan downgraded to non-performing status during the second quarter of 2023. The second quarter of 2024 reflected net charge-offs of $7.8 million, or 0.09% annualized of average total loans, compared to $8.7 million, or 0.11% annualized, in the second quarter of 2023. Total provision for credit losses for the six months ended June 30, 2024 was $34.1 million compared to $32.6 million for the same period of 2023. Net charge-offs were $20.6 million, or 0.13% annualized of average total loans, during the six months ended June 30, 2024, compared to $21.9 million, or 0.14% annualized, for the same period of 2023.

NOTE 6.    LOAN SERVICING

Mortgage Loan Servicing

We retain the servicing rights on certain mortgage loans sold. The unpaid principal balance of mortgage loans serviced for others is listed below:

TABLE 6.1

(in millions)	June 30, 2024		December 31, 2023
Mortgage loans sold with servicing retained	$	6,095	$	5,729

The following table summarizes activity relating to mortgage loans sold with servicing retained:

TABLE 6.2

	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2024		2023		2024		2023
Mortgage loans sold with servicing retained	$	306	$	261	$	622	$	459
Pre-tax net gains (losses) resulting from above loan sales (1)	5		1		11		1
Mortgage servicing fees (1)	3		4		7		7

(1) Recorded in mortgage banking operations on the Consolidated Statements of Income.

35

Following is a summary of activity relating to MSRs:

TABLE 6.3

	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2024		2023		2024		2023
Balance at beginning of period	$	62.5	$	54.3	$	59.5	$	52.8
Additions	3.9		2.7		7.8		5.2
Payoffs and curtailments	(0.8)		—		(1.3)		(0.3)
Impairment (charge) / recovery	—		—		0.2		—
Amortization / other	(0.5)		(1.3)		(1.1)		(2.0)
Balance at end of period	$	65.1	$	55.7	$	65.1	$	55.7
Fair value, beginning of period	$	75.2	$	67.8	$	71.8	$	68.6
Fair value, end of period	78.0		72.1		78.0		72.1

There was no valuation allowance for MSRs at June 30, 2024 and the valuation allowance for MSRs as of December 31, 2023 was $0.2 million.

The fair value of MSRs is highly sensitive to changes in assumptions and is determined by estimating the present value of the asset’s future cash flows utilizing market-based prepayment rates, discount rates and other assumptions validated through comparison to trade information, industry surveys and the use of independent third-party valuations. Changes in prepayment speed assumptions have the most significant impact on the fair value of MSRs. Generally, as interest rates decline, mortgage loan prepayments accelerate due to increased refinance activity, which results in a decrease in the fair value of MSRs and as interest rates increase, mortgage loan prepayments decline, which results in an increase in the fair value of MSRs. Measurement of fair value is limited to the conditions existing and the assumptions utilized as of a particular point in time, and those assumptions may not be appropriate if they are applied at a different point in time.

Following is a summary of the sensitivity of the fair value of MSRs to changes in key assumptions:

TABLE 6.4

(dollars in millions)	June 30, 2024			December 31, 2023
Weighted average life (months)	92			92
Constant prepayment rate (annualized)	8.1		%	7.9		%
Discount rate	10.2		%	10.2		%
Effect on fair value due to change in interest rates:
+2.00%	$	8		$	7
+1.00%	6			5
+0.50%	4			3
+0.25%	2			2
-0.25%	(2)			(2)
-0.50%	(5)			(4)
-1.00%	(10)			(8)
-2.00%	(19)			(21)
-3.00%	(36)			(42)

The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. Changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the changes in assumptions to fair value may not be linear. Also, in this table, the effects of an adverse variation in a particular assumption on the fair value of MSRs is calculated without changing any other assumptions, while, in reality, changes in one factor may result in changing another, which may magnify or contract the effect of the change.

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NOTE 7.    LEASES

We have operating leases primarily for certain branches, office space, land and office equipment. We have finance leases for certain branches. Our operating leases expire at various dates through the year 2046 and generally include one or more options to renew. Our finance leases expire at various dates through the year 2051 and generally include one or more options to renew. The exercise of lease renewal options is at our sole discretion. As of June 30, 2024, we had operating lease right-of-use assets and operating lease liabilities of $199.3 million and $240.4 million, respectively. We have finance lease right-of-use assets and finance lease liabilities of $34.6 million and $36.2 million, respectively.

Our operating lease agreements do not contain any material residual value guarantees or material restrictive covenants. As of June 30, 2024, we have certain operating lease agreements, primarily for administrative office space, that have not yet commenced. At commencement, it is expected that these leases will add approximately $8.0 million in right-of-use assets and $8.3 million in other liabilities. These operating leases are currently expected to commence in 2024 and 2025 with lease terms of up to 20 years. These operating leases include the lease, with a related party, of the future new FNB headquarters building in Pittsburgh, Pennsylvania. Beginning in 2023, several floors of the FNB headquarters building have been made available to FNB for the purpose of constructing our office spaces, and we commenced the lease of those floors. The related party operating lease is accounted for in a manner consistent with all other leases on the basis of the legally enforceable terms and conditions of the lease and the related party represents a VIE for which we are not the primary beneficiary.

The components of lease expense were as follows:

TABLE 7.1

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in millions)	2024		2023		2024		2023
Operating lease cost	$	9	$	8	$	19	$	16
Variable lease cost	2		1		3		2
Finance lease cost	1		1		2		2
Total lease cost	$	12	$	10	$	24	$	20

Other information related to leases is as follows:

TABLE 7.2

	Six Months Ended June 30,
(dollars in millions)	2024			2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	15		$	7
Operating cash flows from finance leases	$	1		$	—
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	25		$	—
Finance leases	$	4		$	—
Weighted average remaining lease term (years):
Operating leases	11.00			9.11
Finance leases	19.00			19.97
Weighted average discount rate:
Operating leases	3.8		%	2.7		%
Finance leases	3.4		%	3.1		%

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Future cash flows of lease liabilities are as follows:

TABLE 7.3

(in millions)	Operating Leases		Finance Leases		Total Leases
June 30, 2024
0 - 12 months	$	35	$	2	$	37
13 - 24 months	30		2		32
25 - 36 months	27		2		29
37 - 48 months	25		3		28
49 - 60 months	23		3		26
Later years	164		37		201
Total lease payments	304		49		353
Less: imputed interest	(64)		(13)		(77)
Present value of lease liabilities	$	240	$	36	$	276

As a lessor we offer commercial leasing services to customers in need of new or used equipment primarily within our market areas of Pennsylvania, Ohio, Maryland, North Carolina, South Carolina and West Virginia. Additional information relating to commercial leasing is provided in Note 4, “Loans and Leases” in the Notes to Consolidated Financial Statements.

NOTE 8.     VARIABLE INTEREST ENTITIES

We evaluate our interest in certain entities to determine if these entities meet the definition of a VIE and whether we are the primary beneficiary and required to consolidate the entity based on the variable interest we held both at inception and when there is a change in circumstances that requires a reconsideration.

Unconsolidated VIEs

The following table provides a summary of the assets and liabilities included in our Consolidated Financial Statements, as well as the maximum exposure to losses, associated with our interests related to VIEs for which we hold an interest, but are not the primary beneficiary.

TABLE 8.1

(in millions)	Total Assets		Total Liabilities		Maximum Exposure to Loss
June 30, 2024
Trust preferred securities (1)	$	3	$	73	$	—
Tax credit partnerships	174		81		174
Other investments	28		—		28
Total	$	205	$	154	$	202
December 31, 2023
Trust preferred securities (1)	$	3	$	73	$	—
Tax credit partnerships	143		62		143
Other investments	40		6		40
Total	$	186	$	141	$	183
(1) Represents our investment in unconsolidated subsidiaries.

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Trust-Preferred Securities

We have certain wholly-owned trusts whose assets, liabilities, equity, income and expenses are not included within our Consolidated Financial Statements. These trusts have been formed for the sole purpose of issuing TPS, from which the proceeds are then invested in our junior subordinated debentures, which are reflected in our Consolidated Balance Sheets as junior subordinated debt. The TPS are the obligations of the trusts, and as such, are not consolidated within our Consolidated Financial Statements. For additional information relating to our TPS, see Note 9, “Borrowings” in the Notes to Consolidated Financial Statements.

Each issue of the junior subordinated debentures has an interest rate equal to the corresponding TPS distribution rate. We have the right to defer payment of interest on the debentures at any time, or from time-to-time for a period not exceeding five years provided that no extension period may extend beyond the stated maturity of the related debentures. During any such extension period, distributions to the TPS will also be deferred and our ability to pay dividends on our common stock will be restricted. Periodic cash payments and payments upon liquidation or redemption with respect to TPS are guaranteed by us to the extent of funds held by the trusts. The guarantee ranks subordinate and junior in right of payment to all our indebtedness to the same extent as the junior subordinated debt. The guarantee does not place a limitation on the amount of additional indebtedness that may be incurred by us.

Affordable Housing, Historic and New Market Tax Credit Partnerships

We make equity investments as a limited partner in various partnerships of affordable housing (LIHTC), historic tax credit (HTC) and new market tax credit (NMTC) programs pursuant to Sections 42, 47 and 45d of the Internal Revenue Code, respectively. The purpose of many of these investments is to support initiatives associated with the Community Reinvestment Act while earning a satisfactory return. The activities of the LIHTC partnerships include the development and operation of multi-family housing that is leased to qualifying residential tenants. HTC partnerships allow us to make investments in projects that involve the rehabilitation of historic structures, often combining our investments with bank financing. NMTC partnerships are designed to channel investments into distressed communities, fostering community development and stimulating economic growth. These tax credit partnerships are generally located in communities where we have a banking presence and meet the definition of a VIE; however, we are not the primary beneficiary of the entities, as the general partner or managing member has both the power to direct the activities that most significantly impact the economic performance of the entities and the obligation to absorb losses beyond our own equity investment.

We apply the proportional amortization method of accounting for our investments in LIHTC partnerships. Effective January 1, 2024, upon the adoption of ASU 2023-02, Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, we also began applying the proportional amortization method of accounting to our investments in HTC and NMTC partnerships. The proportional amortization method recognizes the amortized cost of the investments in these tax credit partnerships as a component of income tax expense on the Consolidated Statements of Income. Prior to the adoption of ASU 2023-02, we applied the equity method of accounting to the investments in HTC and NMTC partnerships. The adoption of ASU 2023-02 did not have a material impact on our consolidated financial statements. We record our investment in tax credit partnerships as a component of other assets.

The following table presents the balances of our LIHTC, HTC and NMTC investments and related unfunded commitments:

TABLE 8.2

(in millions)	June 30, 2024		December 31, 2023
Tax credit investments included in other assets	$	93	$	81
Unfunded tax credit investments	81		62

In the first quarter of 2024, we adopted ASU 2023-02, resulting in the amortization of HTC and NMTC investments being recognized in the provision for income taxes as of the adoption of this standard. These activities were previously recognized in non-interest expense.

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The following table summarizes the impact of these tax credit investments on the provision for income taxes in our Consolidated Statements of Income:

TABLE 8.3

	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2024		2023		2024		2023
Provision for income taxes:
Amortization of tax credit investments under proportional method	$	6	$	4	$	11	$	8
Tax credits from tax credit investments	(6)		(4)		(11)		(8)
Other tax benefits related to tax credit investments	(1)		—		(2)		(1)
Total impact on provision for income taxes	$	(1)	$	—	$	(2)	$	(1)

Other Investments

Other investments we also consider to be unconsolidated VIEs include investments in Small Business Investment Companies and other equity method investments.

NOTE 9.    BORROWINGS

Following is a summary of short-term borrowings:

TABLE 9.1

(in millions)	June 30, 2024		December 31, 2023
Securities sold under repurchase agreements	$	201	$	233
Federal Home Loan Bank advances	2,990		1,900
Federal funds purchased	298		260
Subordinated notes	127		113
Total short-term borrowings	$	3,616	$	2,506

Borrowings with original maturities of one year or less are classified as short-term. Securities sold under repurchase agreements are comprised of customer repurchase agreements, which are sweep accounts with next-day maturities utilized by larger commercial customers to earn interest on their funds. Securities are pledged to these customers in an amount at least equal to the outstanding balance. Of the total short-term FHLB advances, $840.0 million, or 28.1%, had overnight maturities as of June 30, 2024. We had $450.0 million, or 23.7%, of short-term FHLB advances with overnight maturities as of December 31, 2023. At June 30, 2024, $200.0 million, or 6.7%, of the short-term FHLB advances were swapped to fixed rates with various maturities through 2024. This compares to $400.0 million, or 21.1%, as of December 31, 2023. Federal funds purchased are overnight funds borrowed from other financial institutions. Subordinated notes are unsecured and subordinated to our other indebtedness. The short-term subordinated notes mature within one year.

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Following is a summary of long-term borrowings:

TABLE 9.2

(in millions)	June 30, 2024		December 31, 2023
Federal Home Loan Bank advances	$	1,250	$	1,200
Senior notes	349		349
Subordinated notes	77		82
Junior subordinated debt	73		73
Other subordinated debt	267		267
Total long-term borrowings	$	2,016	$	1,971

Our banking affiliate has available credit with the FHLB of $11.6 billion, of which $4.2 billion was utilized and included in short-term and long-term borrowings and $450.0 million was utilized for a letter of credit for pledging of public funds as of June 30, 2024. These advances are secured by loans collateralized by residential mortgages, home equity lines of credit, commercial real estate and FHLB stock. The short-term borrowings are scheduled to mature in various amounts periodically during 2024 while the long-term borrowings are scheduled to mature periodically through 2027. Effective interest rates paid on fixed rate long-term FHLB advances ranged from 4.23% to 4.88% for both the three months ended June 30, 2024 and for the year ended December 31, 2023. The effective interest rate paid on variable rate long-term FHLB advances was Overnight SOFR plus an average spread of 33.1 basis points for the three months ended June 30, 2024. There were no variable rate advances for the year ended December 31, 2023.

The following table provides information relating to our senior notes and other subordinated debt as of June 30, 2024. The subordinated notes are eligible for treatment as tier 2 capital for regulatory capital purposes.

TABLE 9.3

(dollars in millions)	Aggregate Principal Amount Issued		Net Proceeds (5)		Carrying Value		Stated Maturity Date	Interest Rate
Senior Notes:
5.150% Senior Notes due August 25, 2025	$	350	$	347	$	349	8/25/2025	5.150	%
Total senior notes	350		347		349
Other Subordinated Debt:
7.984% Fixed-To-Floating Rate Subordinated Notes due 2029 (1)	120		118		119		2/14/2029	7.984	%
4.875% Subordinated Notes due 2025	100		98		100		10/2/2025	4.875	%
8.620% Fixed-To-Floating Rate Subordinated Notes due December 6, 2028 (2) (4)	25		26		24		12/6/2028	8.620	%
5.000% Fixed-To-Floating Rate Subordinated Note due May 29, 2030 (3) (4)	25		24		24		5/29/2030	5.000	%
Total other subordinated debt	270		266		267
Total	$	620	$	613	$	616

(1) Floating rate effective February 14, 2024, determined by the Benchmark Replacement (three-month CME term SOFR plus a tenor spread adjustment of 26 basis points) plus 240 basis points.

(2) Floating rate effective December 6, 2023, determined by the Benchmark Replacement (three-month CME term SOFR plus a tenor spread adjustment of 26 basis points) plus 302 basis points.

(3) Fixed rate until May 29, 2025, at which time it converts to a floating rate determined by three-month SOFR plus 464 basis points.

(4) Assumed from an acquisition and adjusted to fair value at the time of acquisition.

(5) After deducting underwriting discounts and commissions and offering costs. For the debt assumed from acquisitions, this is the fair value of the debt at the time of the acquisition.

The junior subordinated debt is comprised of the debt securities issued by FNB, or companies we acquired, in relation to our four unconsolidated subsidiary trusts (collectively, the Trusts), which are unconsolidated VIEs, and are included on the Consolidated Balance Sheets in long-term borrowings. Since third-party investors are the primary beneficiaries, the Trusts are

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not consolidated in our Financial Statements. We record the distributions on the junior subordinated debt issued to the Trusts as interest expense.

The following table provides information relating to the Trusts as of June 30, 2024:

TABLE 9.4

(dollars in millions)	Trust Preferred Securities		Common Securities		Junior Subordinated Debt		Stated Maturity Date	Interest Rate		Rate Reset Factor
F.N.B. Statutory Trust II	$	22	$	1	$	22	6/15/2036	7.25	%	SOFR + 165 bps
Yadkin Valley Statutory Trust I	25		1		23		12/15/2037	6.92	%	SOFR + 132 bps
FNB Financial Services Capital Trust I	25		1		23		9/30/2035	7.05	%	SOFR + 146 bps
Patapsco Statutory Trust I	5		—		5		12/15/2035	7.08	%	SOFR + 148 bps
Total	$	77	$	3	$	73

The SOFR rate used for the rate reset factors in the above table is the Benchmark Replacement (three-month CME term SOFR plus a tenor spread adjustment of 26 basis points).

Other Credit Availability

Our banking affiliate has additional unused other wholesale credit availability of $7.9 billion as of June 30, 2024.

NOTE 10.    DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

We are exposed to certain risks arising from both our business operations and economic conditions. We principally manage our exposures to a wide variety of business and operational risks through management of our core business activities. We manage economic risks, including interest rate risk, primarily by managing the amount, source, and duration of our assets and liabilities, and through the use of derivative instruments. Derivative instruments are used to reduce the effects that changes in interest rates may have on net income and cash flows. We also use derivative instruments to facilitate transactions on behalf of our customers.

All derivatives are carried on the Consolidated Balance Sheets at fair value and do not take into account the effects of master netting arrangements we have with other financial institutions. Credit risk is included in the determination of the estimated fair value of derivatives. Derivative assets are reported in the Consolidated Balance Sheets in other assets and derivative liabilities are reported in other liabilities. Cash flow activity relating to derivative assets and derivative liabilities is reported in the other, net line in operating activities on the Consolidated Statements of Cash Flows. Changes in fair value are recognized in earnings except for certain changes related to derivative instruments designated as part of a cash flow hedging relationship, which are recognized in other comprehensive income.

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The following table presents notional amounts and gross fair values of our derivative assets and derivative liabilities which are not offset in the Consolidated Balance Sheets:

TABLE 10.1

	June 30, 2024						December 31, 2023
	Notional		Fair Value				Notional		Fair Value
(in millions)	Amount		Asset		Liability		Amount		Asset		Liability
Gross Derivatives
Subject to master netting arrangements:
Interest rate contracts – designated	$	1,600	$	—	$	3	$	1,800	$	1	$	—
Interest rate swaps – not designated	5,806		104		16		5,660		74		35
Total subject to master netting arrangements	7,406		104		19		7,460		75		35
Not subject to master netting arrangements:
Interest rate swaps – not designated	5,806		16		336		5,660		35		289
Interest rate lock commitments – not designated	323		3		—		239		5		—
Forward delivery commitments – not designated	366		1		1		294		1		4
Credit risk contracts – not designated	762		—		—		629		—		—
Total not subject to master netting arrangements	7,257		20		337		6,822		41		293
Total	$	14,663	$	124	$	356	$	14,282	$	116	$	328

Certain derivative exchanges have enacted a rule change which in effect results in the legal characterization of variation margin payments for certain derivative contracts as settlement of the derivatives mark-to-market exposure and not collateral. Accordingly, we have changed our reporting of certain derivatives to record variation margin on trades cleared through these exchanges as settled.  The daily settlement of the derivative exposure does not change or reset the contractual terms of the instrument.

We adopted Reference Rate Reform (RRR) on October 1, 2020, and the guidance will be followed until the Update terminates on December 31, 2024. As of October 16, 2020, we changed our valuation methodology to reflect changes made by central clearinghouses that changed the discounting methodology and interest calculation of cash migration from overnight index swap (OIS) to SOFR for U.S. dollar cleared interest rate swaps to better reflect prices obtainable in the markets in which we transact. Certain of these valuation methodology changes were applied to eligible hedging relationships. Accordingly, we have updated our hedge documentation to reflect the election of certain expedients and exceptions related to our cash flow hedging programs. The change in valuation methodology was applied prospectively as a change in accounting estimate and did not have a material impact on our consolidated financial position or results of operations.

Derivatives Designated as Hedging Instruments under GAAP

Interest Rate Contracts. We entered into interest rate derivative agreements to modify the interest rate characteristics of certain commercial loans and certain of our FHLB advances from variable rate to fixed rate in order to reduce the impact of changes in future cash flows due to market interest rate changes. These agreements are designated as cash flow hedges, in the form of interest rate swaps and collars, hedging the exposure to variability in expected future cash flows. The derivative’s gain or loss, including any ineffectiveness, is initially reported as a component of other comprehensive income and subsequently reclassified into earnings in the same line item associated with the forecasted transaction when the forecasted transaction affects earnings.

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The following table shows amounts reclassified from AOCI:

TABLE 10.2

	Amount of Gain (Loss) Recognized in OCI on Derivatives				Location of Gain (Loss) Reclassified from AOCI into Income	Amount of Gain (Loss) Reclassified from AOCI into Income
	Six Months Ended June 30,					Six Months Ended June 30,
(in millions)	2024		2023			2024		2023
Derivatives in cash flow hedging relationships:
Interest rate contracts	$	(15)	$	(13)	Interest income (expense)	$	(19)	$	(9)
					Other income	—		—

The following table represents gains (losses) recognized in the Consolidated Statements of Income on cash flow hedging relationships:

TABLE 10.3

	Six months ended June 30,
	2024				2023
(in millions)	Interest Income - Loans and Leases		Interest Expense - Short-Term Borrowings		Interest Income - Loans and Leases		Interest Expense - Short-Term Borrowings
Total amounts of income and expense line items presented in the Consolidated Statements of Income (the effects of cash flow hedges are included in these line items)	$	975	$	60	$	823	$	32
The effects of cash flow hedging:
Gain (loss) on cash flow hedging relationships:
Interest rate contracts:
Amount of gain (loss) reclassified from AOCI into net income	(25)		6		(21)		12

As of June 30, 2024, the maximum length of time over which forecasted interest cash flows are hedged is 1.8 years. In the twelve months that follow June 30, 2024, we expect to reclassify from the amount currently reported in AOCI net derivative losses of $35.9 million ($27.8 million net of tax), in association with interest on the hedged loans and FHLB advances. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, and the addition of other hedges subsequent to June 30, 2024.

There were no components of derivative gains or losses excluded from the assessment of hedge effectiveness related to these cash flow hedges. Also, during the six months ended June 30, 2024 and 2023, there were no gains or losses from cash flow hedge derivatives reclassified to earnings because it became probable that the original forecasted transactions would not occur.

Derivatives Not Designated as Hedging Instruments under GAAP

A description of interest rate swaps, interest rate lock commitments, forward delivery commitments and credit risk contracts can be found in Note 16, "Derivative Instruments and Hedging Activities" in the Consolidated Financial Statements included in our 2023 Annual Report on Form 10-K filed with the SEC on February 26, 2024.

Interest rate swap agreements with loan customers and with the offsetting counterparties are reported at fair value in other assets and other liabilities on the Consolidated Balance Sheets with any resulting gain or loss recorded in current period earnings as other income or other expense.

Risk participation agreements sold with notional amounts totaling $603.9 million as of June 30, 2024 have remaining terms ranging from one month to seventeen years. Under these agreements, our maximum exposure assuming a customer defaults on their obligation to perform under certain derivative swap contracts with third parties would be $0.1 million at both June 30,

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2024 and December 31, 2023. The fair values of risk participation agreements purchased and sold were $0.1 million and $0.1 million, respectively, at June 30, 2024 and $0.2 million and $0.1 million, respectively at December 31, 2023.

The following table presents the effect of certain derivative financial instruments on the Consolidated Statements of Income:

TABLE 10.4

		Six Months Ended June 30,
(in millions)	Consolidated Statements of Income Location	2024		2023
Interest rate swaps	Non-interest income - other	$	—	$	—
Interest rate lock commitments	Mortgage banking operations	—		—
Forward delivery contracts	Mortgage banking operations	4		3
Credit risk contracts	Non-interest income - other	—		—

Counterparty Credit Risk

We are party to master netting arrangements with most of our swap derivative dealer counterparties. Collateral, usually marketable securities and/or cash, is exchanged between FNB and our counterparties, and is generally subject to thresholds and transfer minimums. For swap transactions that require central clearing, we post cash and securities to our clearing agency. Collateral positions are settled or valued daily, and adjustments to amounts received and pledged by us are made as appropriate to maintain proper collateralization for these transactions.

Certain master netting agreements contain provisions that, if violated, could cause the counterparties to request immediate settlement or demand full collateralization under the derivative instrument. If we had breached our agreements with our derivative counterparties we would be required to settle our obligations under the agreements at the termination value and would be required to pay nothing as of June 30, 2024 or December 31, 2023, in excess of amounts previously posted as collateral with the respective counterparty.

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The following table presents a reconciliation of the net amounts of derivative assets and derivative liabilities presented in the Consolidated Balance Sheets to the net amounts that would result in the event of offset:

TABLE 10.5

			Amount Not Offset in the Consolidated Balance Sheets
(in millions)	Net Amount Presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral		Net Amount
June 30, 2024
Derivative Assets
Interest rate contracts:
Not designated	$	104	$	—	$	103	$	1
Total	$	104	$	—	$	103	$	1

Derivative Liabilities
Interest rate contracts:
Designated	$	3	$	—	$	3	$	—
Not designated	16		—		16		—
Total	$	19	$	—	$	19	$	—

December 31, 2023
Derivative Assets
Interest rate contracts:
Designated	$	1	$	—	$	1	$	—
Not designated	74		—		74		—
Total	$	75	$	—	$	75	$	—

Derivative Liabilities
Interest rate contracts:
Not designated	$	35	$	—	$	35	$	—
Total	$	35	$	—	$	35	$	—

NOTE 11.    COMMITMENTS, CREDIT RISK AND CONTINGENCIES

We have commitments to extend credit and standby letters of credit that involve certain elements of credit risk in excess of the amount stated in the Consolidated Balance Sheets. Our exposure to credit loss in the event of non-performance by the customer is represented by the contractual amount of those instruments. The credit risk associated with commitments to extend credit and standby letters of credit is essentially the same as that involved in extending loans and leases to customers and is subject to normal credit policies. Since many of these commitments expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements.

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Following is a summary of off-balance sheet credit risk information:

TABLE 11.1

(in millions)	June 30, 2024		December 31, 2023
Commitments to extend credit	$	14,103	$	13,656
Standby letters of credit	253		257

At June 30, 2024, funding of 76.8% of the commitments to extend credit was dependent on the financial condition of the customer. We have the ability to withdraw such commitments at our discretion. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Based on management’s credit evaluation of the customer, collateral may be deemed necessary. Collateral requirements vary and may include accounts receivable, inventory, property, plant and equipment and income-producing commercial properties.

Standby letters of credit are conditional commitments issued by us that may require payment at a future date. The credit risk involved in issuing letters of credit is actively monitored through review of the historical performance of our portfolios.

Our AULC for commitments that are not unconditionally cancellable, which is included in other liabilities on the Consolidated Balance Sheets, was $21.8 million at June 30, 2024 and $21.5 million at December 31, 2023. Additional information relating to the AULC is provided in Note 5, "Allowance for Credit Losses on Loans and Leases" in the Notes to Consolidated Financial Statements.

In addition to the above commitments, subordinated notes issued by FNB Financial Services, LP, a wholly-owned finance subsidiary, are fully and unconditionally guaranteed by FNB. These subordinated notes are included in the summaries of short-term borrowings and long-term borrowings in Note 9, “Borrowings” in the Notes to Consolidated Financial Statements.

Other Legal Proceedings

In the ordinary course of business, we may assert claims in legal proceedings against another party or parties, and likewise may be named as defendants in, or made parties to, pending and potential legal actions. Also, as regulated entities, we are subject to governmental and regulatory examinations, information-gathering requests, and may be subject to investigations and proceedings (both formal and informal). Such asserted or threatened claims, litigation, investigations, inquiries, regulatory and administrative proceedings typically entail matters that are considered incidental to the normal conduct of business. Claims for significant monetary damages may be asserted in many of these types of legal actions, while claims for disgorgement, reimbursement, restitution, penalties and/or other remedial actions or sanctions may be sought in regulatory matters. In these instances, if we determine that we have meritorious defenses, we will engage in an aggressive defense. However, if management determines, in consultation with counsel, that settlement of a matter is in the best interest of FNB and our shareholders, we may do so. It is inherently difficult to predict the eventual outcomes of such matters given their complexity and the particular facts and circumstances at issue in each of these matters. However, on the basis of our current knowledge and understanding, and advice of counsel, we do not believe that judgments, sanctions, settlement resolutions, regulatory actions, investigations, inquiries, settlements or orders, if any, that have arisen or may arise from these matters (either individually or in the aggregate, after giving effect to applicable reserves and insurance coverage) will have a material adverse effect on our financial position or liquidity, although they could potentially have a material effect on net income in a given period.

In view of the inherent unpredictability of outcomes in litigation and governmental and regulatory matters, particularly where (i) the damages sought are indeterminate, (ii) the proceedings are in the early stages, or (iii) the matters involve novel legal theories or a large number of parties, as a matter of course, there is considerable uncertainty surrounding the timing or ultimate resolution of litigation and governmental and regulatory matters, including a possible eventual loss, financial or other commitments, fine, restitution, penalty, business or adverse reputational impact, if any, associated with each such matter. In accordance with applicable accounting guidance, we establish accruals for litigation and governmental and regulatory matters when those matters proceed to a stage where they present loss contingencies that are both probable and reasonably estimable. In such cases, there may be a possible exposure to loss in excess of any amounts accrued. We will continue to monitor such matters, including ongoing reviews, examinations, and investigations by banking regulatory agencies and other government authorities, for developments that could affect the amount of the accrual, and will adjust the accrual amount as appropriate. If the loss contingency in question is not both probable and reasonably estimable, we do not establish an accrual and the matter will continue to be monitored for any developments that would make the loss contingency both probable and reasonably

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estimable. We believe that our accruals for legal proceedings are appropriate and, in the aggregate, are not material to our consolidated financial position, although future accruals could have a material effect on net income in a given period.

On February 5, 2024, we announced that Yadkin Bank and its successor by merger, FNBPA, reached a settlement with the DOJ and the State of North Carolina to resolve their fair lending concerns, which FNBPA disputes, related to the assessment of mortgage lending activities during a four-year period in the Winston-Salem and Charlotte, North Carolina markets that began prior to Yadkin’s merger with FNBPA in March 2017. The settlement includes FNBPA's commitment to provide $11.75 million in subsidies on mortgages and home equity loans originated in the Charlotte and Winston-Salem, North Carolina markets beginning in 2024, continuing until the full amount has been deployed. This subsidy amount is part of our existing, previously announced commitment to underserved communities, including the Winston-Salem and Charlotte markets. The settlement was not initiated through a referral by a federal bank regulatory agency or consumer complaint, and included no civil money penalties levied against FNBPA.

NOTE 12.    STOCK INCENTIVE PLANS

Restricted Stock

We issue restricted stock awards to key employees under our Incentive Compensation Plan (Plan). We issue time-based awards and performance-based awards under this Plan, both of which are based on a three-year vesting period. The grant date fair value of the time-based awards is equal to the price of our common stock on the grant date. The fair value of the performance-based awards is based on a Monte-Carlo simulation valuation of our common stock as of the grant date. The assumptions used for this valuation include stock price volatility, risk-free interest rate and dividend yield. We granted 1,249,783 and 1,354,017 restricted stock units during the six months ended June 30, 2024 and 2023, respectively, including 331,182 and 282,106 performance-based restricted stock units during those same periods, respectively. We have shareholder approval under the Plan to issue up to 14,000,000 shares of common stock, including 8,000,000 shares registered during the second quarter of 2024. As of June 30, 2024, we had 9,106,891 remaining shares available for awards under the Plan.

The unvested restricted stock unit awards are eligible to receive cash dividends or dividend equivalents which are ultimately used to purchase additional shares of stock and are subject to forfeiture if the requisite service period is not completed or the specified performance criteria are not met. These awards are subject to certain accelerated vesting provisions upon retirement, death, disability or in the event of a change in control as defined in the award agreements.

The following table summarizes the activity relating to restricted stock units during the periods indicated:

TABLE 12.1

	Six Months Ended June 30,
	2024			2023
	Units	Weighted Average Grant Price per Share		Units	Weighted Average Grant Price per Share
Unvested units outstanding at beginning of period	3,502,598	$	12.89	4,821,182	$	10.30
Granted	1,249,783	14.04		1,354,017	12.74
Net adjustment	341,857	—		306,917	8.43
Vested	(1,499,097)	12.76		(2,303,266)	7.99
Forfeited/expired/canceled	(27,777)	12.25		(578,493)	8.13
Dividend reinvestment	—	—		74,505	12.16
Unvested units outstanding at end of period	3,567,364	13.36		3,674,862	12.87

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The following table provides certain information related to restricted stock units:

TABLE 12.2

(in millions)	Six Months Ended June 30,
	2024		2023
Stock-based compensation expense	$	12	$	13
Tax benefit related to stock-based compensation expense	3		3
Fair value of units vested	19		30

As of June 30, 2024, there was $15.6 million of unrecognized compensation cost related to unvested restricted stock units.

The components of the restricted stock units as of June 30, 2024 are as follows:

TABLE 12.3

(dollars in millions)	Service- Based Units		Performance- Based Units		Total
Unvested restricted stock units	2,614,032		953,332		3,567,364
Unrecognized compensation expense	$	15	$	1	$	16
Intrinsic value	$	36	$	13	$	49
Weighted average remaining life (in years)	1.96		1.72		1.89

NOTE 13.      INCOME TAXES

Income Tax Expense

Federal and state income tax expense and the statutory tax rate and the actual effective tax rate consist of the following:

TABLE 13.1

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in millions)	2024			2023			2024			2023
Current income taxes:
Federal taxes	$	30		$	36		$	47		$	67
State taxes	2			3			4			5
Total current income taxes	32			39			51			72
Deferred income taxes:
Federal taxes	1			(3)			14			(1)
State taxes	1			1			3			1
Total deferred income taxes	2			(2)			17			—
Total income taxes	$	34		$	37		$	68		$	72
Statutory federal tax rate	21.0		%	21.0		%	21.0		%	21.0		%
Effective tax rate	21.6			20.5			21.6			20.0

Income tax expense was lower for the six months ended June 30, 2024 due to lower pre-tax earnings, partially offset by lower stock compensation vesting deductions, higher disallowance of FDIC premium deductions and higher levels of proportional amortization for certain tax credit investments resulting from the adoption of FASB ASU 2023-02 on January 1, 2024. The effective tax rate increased for the three months ended June 30, 2024 as a result of these offsetting items.

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Deferred Income Taxes

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and tax purposes. Deferred tax assets and liabilities are measured based on the enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid. Net deferred tax assets were $107.4 million and $120.8 million at June 30, 2024 and December 31, 2023, respectively.

NOTE 14.    OTHER COMPREHENSIVE INCOME (LOSS)

The following table presents changes in AOCI, net of tax, by component:

TABLE 14.1

(in millions)	Unrealized Net Gains (Losses) on Debt Securities Available for Sale		Unrealized Net Gains (Losses) on Derivative Instruments		Unrecognized Pension and Postretirement Obligations		Total
Six Months Ended June 30, 2024
Balance at beginning of period	$	(160)	$	(33)	$	(42)	$	(235)
Other comprehensive (loss) income before reclassifications	(11)		(12)		—		(23)
Amounts reclassified from AOCI	—		15		—		15
Net current period other comprehensive (loss) income	(11)		3		—		(8)
Balance at end of period	$	(171)	$	(30)	$	(42)	$	(243)

The amounts reclassified from AOCI related to debt securities AFS are included in net securities gains (losses) on the Consolidated Statements of Income, while the amounts reclassified from AOCI related to derivative instruments in cash flow hedge programs are generally included in interest income on loans and leases on the Consolidated Statements of Income. The tax (benefit) expense amounts reclassified from AOCI in connection with the debt securities AFS and derivative instruments reclassifications are included in income taxes on the Consolidated Statements of Income.

NOTE 15.    EARNINGS PER COMMON SHARE

Basic earnings per common share is calculated by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding net of unvested shares of restricted stock.

Diluted earnings per common share is calculated by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding, adjusted for the dilutive effect of potential common shares issuable for stock options and restricted shares, as calculated using the treasury stock method. Adjustments to the weighted average number of shares of common stock outstanding are made only when such adjustments dilute earnings per common share.

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The following table sets forth the computation of basic and diluted earnings per common share:

TABLE 15.1

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in millions, except per share data)	2024		2023		2024		2023
Net income	$	123	$	142	$	245	$	289
Less: Preferred stock dividends	—		2		6		4
Net income available to common stockholders	$	123	$	140	$	239	$	285
Basic weighted average common shares outstanding	361,754,312		360,124,415		361,500,357		360,489,630
Net effect of dilutive stock options and restricted stock	946,921		2,501,767		1,159,902		3,286,929
Diluted weighted average common shares outstanding	362,701,233		362,626,182		362,660,259		363,776,559
Earnings per common share:
Basic	$	0.34	$	0.39	$	0.66	$	0.79
Diluted	$	0.34	$	0.39	$	0.66	$	0.78

There were no anti-dilutive shares for the six months ended June 30, 2024 and 2023.

NOTE 16.    CASH FLOW INFORMATION

Following is a summary of supplemental cash flow information:

TABLE 16.1

	Six Months Ended June 30,
(in millions)	2024		2023
Interest paid on deposits and other borrowings	$	461	$	238
Income taxes paid	26		67
Transfers of loans to other real estate owned	1		1
Loans transferred to portfolio from held for sale	12		26

We did not have any restricted cash as of June 30, 2024 and 2023.

NOTE 17.    BUSINESS SEGMENTS

We operate in three reportable segments: Community Banking, Wealth Management and Insurance.

•The Community Banking segment provides commercial and consumer banking services. Commercial banking solutions include corporate banking, small business banking, investment real estate financing, business credit, capital markets and lease financing. Consumer banking products and services include deposit products, mortgage lending, consumer lending and a complete suite of mobile and online banking services.

•The Wealth Management segment provides a broad range of personal and corporate fiduciary services including the administration of decedent and trust estates. In addition, it offers various alternative products, including securities brokerage (under a third-party arrangement) and investment advisory services, mutual funds and annuities.

•The Insurance segment includes a full-service insurance brokerage service offering all lines of commercial and personal insurance through major carriers. The Insurance segment also includes a reinsurer.

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The following table provides financial information for these segments of FNB. The information provided under the caption “Parent and Other” represents operations not considered to be reportable segments and/or general operating expenses of FNB, and includes the parent company, other non-bank subsidiaries and eliminations and adjustments to reconcile to the Consolidated Financial Statements.

TABLE 17.1

(in millions)	Community Banking		Wealth Management		Insurance		Parent and Other		Consolidated
At or for the Three Months Ended June 30, 2024
Interest income	$	555	$	—	$	—	$	2	$	557
Interest expense	233		—		—		8		241
Net interest income	322		—		—		(6)		316
Provision for credit losses	20		—		—		—		20
Non-interest income	65		20		6		(3)		88
Non-interest expense (1)	199		14		6		3		222
Amortization of intangibles	5		—		—		—		5
Income tax expense (benefit)	36		1		—		(3)		34
Net income (loss)	127		5		—		(9)		123
Total assets	47,421		42		36		216		47,715
Total intangibles	2,503		9		25		—		2,537
At or for the Three Months Ended June 30, 2023
Interest income	$	483	$	—	$	—	$	1	$	484
Interest expense	147		—		—		8		155
Net interest income	336		—		—		(7)		329
Provision for credit losses	19		—		—		—		19
Non-interest income	57		18		7		(1)		81
Non-interest expense (1)	187		13		5		2		207
Amortization of intangibles	5		—		—		—		5
Income tax expense (benefit)	39		1		1		(4)		37
Net income (loss)	143		4		1		(6)		142
Total assets	44,629		39		32		78		44,778
Total intangibles	2,521		9		26		—		2,556
(1) Excludes amortization of intangibles, which is presented separately.

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(in millions)	Community Banking		Wealth Management		Insurance		Parent and Other		Consolidated
At or for the Six Months Ended June 30, 2024
Interest income	$	1,097	$	—	$	—	$	3	$	1,100
Interest expense	451		—		—		14		465
Net interest income	646		—		—		(11)		635
Provision for credit losses	34		—		—		—		34
Non-interest income	127		40		13		(4)		176
Non-interest expense (1)	410		27		10		8		455
Amortization of intangibles	9		—		—		—		9
Income tax expense (benefit)	70		3		1		(6)		68
Net income (loss)	250		10		2		(17)		245
Total assets	47,421		42		36		216		47,715
Total intangibles	2,503		9		25		—		2,537
At or for the Six Months Ended June 30, 2023
Interest income	$	925	$	—	$	—	$	3	$	928
Interest expense	245		—		—		17		262
Net interest income	680		—		—		(14)		666
Provision for credit losses	33		—		—		—		33
Non-interest income	112		36		14		(2)		160
Non-interest expense (1)	382		26		9		5		422
Amortization of intangibles	10		—		—		—		10
Income tax expense (benefit)	77		2		1		(8)		72
Net income (loss)	290		8		4		(13)		289
Total assets	44,629		39		32		78		44,778
Total intangibles	2,521		9		26		—		2,556

(1) Excludes amortization of intangibles, which is presented separately.

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NOTE 18.    FAIR VALUE MEASUREMENTS

Refer to Note 26, "Fair Value Measurements" to the Consolidated Financial Statements included in our 2023 Annual Report on Form 10-K filed with the SEC on February 26, 2024 for a description of additional valuation methodologies for assets and liabilities measured at fair value on a recurring and non-recurring basis.

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis:

TABLE 18.1

(in millions)	Level 1		Level 2		Level 3		Total
June 30, 2024
Assets Measured at Fair Value
Debt securities available for sale
U.S. Treasury	$	197	$	—	$	—	$	197
U.S. government agencies	—		67		—		67
U.S. government-sponsored entities	—		298		—		298
Residential MBS:
Agency MBS	—		886		—		886
Agency collateralized mortgage obligations	—		758		—		758
Agency commercial MBS	—		1,092		—		1,092
States of the U.S. and political subdivisions (municipals)	—		26		—		26
Other debt securities	—		40		—		40
Total debt securities available for sale	197		3,167		—		3,364
Loans held for sale	—		128		—		128
Loans receivable	—		—		47		47
Derivative financial instruments
Trading	—		120		—		120
Not for trading	—		1		3		4
Total derivative financial instruments	—		121		3		124
Total assets measured at fair value on a recurring basis	$	197	$	3,416	$	50	$	3,663
Liabilities Measured at Fair Value
Derivative financial instruments
Trading	$	—	$	353	$	—	$	353
Not for trading	—		3		—		3
Total derivative financial instruments	—		356		—		356
Total liabilities measured at fair value on a recurring basis	$	—	$	356	$	—	$	356

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(in millions)	Level 1		Level 2		Level 3		Total
December 31, 2023
Assets Measured at Fair Value
Debt securities available for sale
U.S. Treasury	$	420	$	—	$	—	$	420
U.S. government agencies	—		79		—		79
U.S. government-sponsored entities	—		223		—		223
Residential MBS:
Agency MBS	—		752		—		752
Agency collateralized mortgage obligations	—		832		—		832
Agency commercial MBS	—		884		—		884
States of the U.S. and political subdivisions (municipals)	—		27		—		27
Other debt securities	—		37		—		37
Total debt securities available for sale	420		2,834		—		3,254
Loans held for sale	—		150		—		150
Derivative financial instruments
Trading	—		109		—		109
Not for trading	—		2		5		7
Total derivative financial instruments	—		111		5		116
Total assets measured at fair value on a recurring basis	$	420	$	3,095	$	5	$	3,520
Liabilities Measured at Fair Value
Derivative financial instruments
Trading	$	—	$	324	$	—	$	324
Not for trading	—		4		—		4
Total derivative financial instruments	—		328		—		328
Total liabilities measured at fair value on a recurring basis	$	—	$	328	$	—	$	328

The following table presents additional information about assets measured at fair value on a recurring basis and for which we have utilized Level 3 inputs to determine fair value:

TABLE 18.2

(in millions)	Other Debt Securities		Loans Receivable		Interest Rate Lock Commitments		Total
Six Months Ended June 30, 2024
Balance at beginning of period	$	—	$	—	$	5	$	5
Purchases, issuances, sales and settlements:
Issuances	—		—		3		3
Settlements	—		—		(5)		(5)
Transfers into Level 3	—		47		—		47
Balance at end of period	$	—	$	47	$	3	$	50
Year Ended December 31, 2023
Balance at beginning of period	$	—	$	—	$	—	$	—
Purchases, issuances, sales and settlements:
Issuances	—		—		6		6
Settlements	—		—		(1)		(1)
Balance at end of period	$	—	$	—	$	5	$	5

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We review fair value hierarchy classifications on a quarterly basis. Changes in the observability of the valuation attributes may result in reclassification of certain financial assets or liabilities. Such reclassifications are reported as transfers in/out of Level 3 at fair value at the beginning of the period in which the changes occur. During the first six months of 2024, $47.3 million in loans receivable were measured using the fair value option at Level 3 on a recurring basis. There were no transfers of assets or liabilities between the hierarchy levels during the first six months of 2023.

From time to time, we measure certain assets at fair value on a non-recurring basis. These adjustments to fair value usually result from the application of the lower of cost or fair value accounting or write-downs of individual assets. Valuation methodologies used to measure these fair value adjustments were described in Note 26, "Fair Value Measurements" to the Consolidated Financial Statements included in 2023 Annual Report on Form 10-K. For assets measured at fair value on a non-recurring basis still held at the Balance Sheet date, the following table provides the hierarchy level and the fair value of the related assets or portfolios:

TABLE 18.3

(in millions)	Level 1		Level 2		Level 3		Total
June 30, 2024
Collateral dependent loans	$	—	$	—	$	35	$	35
Other assets - MSRs	—		—		1		1
December 31, 2023
Collateral dependent loans	$	—	$	—	$	35	$	35
Indirect installment loans held for sale	—		—		338		338
Other assets - MSRs	—		—		12		12
Other assets - SBA servicing asset	—		—		1		1
Other real estate owned	—		—		2		2

The fair value amounts for collateral dependent loans and OREO in the table above were estimated at a date during the six months or twelve months ended June 30, 2024 and December 31, 2023, respectively. Consequently, the fair value information presented is not necessarily as of the period’s end. Collateral dependent loans measured or re-measured at fair value on a non-recurring basis during the six months ended June 30, 2024 had a carrying amount of $34.8 million, which includes an allocated ACL of $7.3 million. The ACL includes a provision applicable to the current period fair value measurements of $7.1 million, which was included in provision for credit losses for the six months ended June 30, 2024.

MSRs measured at fair value on a non-recurring basis had a carrying value of $0.7 million, and there was no valuation allowance as of June 30, 2024. The valuation allowance includes a provision of $0.2 million included in earnings for 2024.

Fair Value of Financial Instruments

Refer to Note 26, "Fair Value Measurements" to the Consolidated Financial Statements included in our 2023 Annual Report on Form 10-K filed with the SEC on February 26, 2024 for a description of methods and assumptions that were used to estimate the fair value of each financial instrument.

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The fair values of our financial instruments are as follows:

TABLE 18.4

					Fair Value Measurements
(in millions)	Carrying Amount		Fair  Value		Level 1		Level 2		Level 3
June 30, 2024
Financial Assets
Cash and cash equivalents	$	1,880	$	1,880	$	1,880	$	—	$	—
Debt securities available for sale	3,364		3,364		197		3,167		—
Debt securities held to maturity	3,893		3,532		—		3,532		—
Net loans and leases, including loans held for sale	33,470		31,998		—		128		31,870
Loan servicing rights	67		79		—		—		79
Derivative assets	124		124		—		121		3
Accrued interest receivable	178		178		178		—		—
Financial Liabilities
Deposits	34,994		34,938		28,107		6,831		—
Short-term borrowings	3,616		3,633		3,633		—		—
Long-term borrowings	2,016		2,043		—		1,274		769
Derivative liabilities	356		356		—		356		—
Accrued interest payable	73		73		73		—		—
December 31, 2023
Financial Assets
Cash and cash equivalents	$	1,576	$	1,576	$	1,576	$	—	$	—
Debt securities available for sale	3,254		3,254		420		2,834		—
Debt securities held to maturity	3,911		3,593		—		3,593		—
Net loans and leases, including loans held for sale	32,405		30,641		—		150		30,491
Loan servicing rights	61		73		—		—		73
Derivative assets	116		116		—		111		5
Accrued interest receivable	160		160		160		—		—
Financial Liabilities
Deposits	34,711		34,654		28,496		6,158		—
Short-term borrowings	2,506		2,505		2,505		—		—
Long-term borrowings	1,971		1,928		—		1,192		736
Derivative liabilities	328		328		—		328		—
Accrued interest payable	69		69		69		—		—

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MD&A represents an overview of and highlights material changes to our financial condition and consolidated results of operations at and for the six-month periods ended June 30, 2024 and 2023. This MD&A should be read in conjunction with the Consolidated Financial Statements and Notes thereto contained herein and our 2023 Annual Report on Form 10-K filed with the SEC on February 26, 2024. Our results of operations for the six months ended June 30, 2024 are not necessarily indicative of results expected for the full year.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This Report may contain statements regarding our outlook for earnings, revenues, expenses, tax rates, capital and liquidity levels and ratios, asset quality levels, financial position and other matters regarding or affecting our current or future business and operations. These statements can be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve various assumptions, risks and uncertainties which can change over time. Actual results or future events may be different from those anticipated in our forward-looking statements and may not align with historical performance and events. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance upon such statements. Forward-looking statements are typically identified by words such as "believe," "plan," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "will," "should," "project," "goal," and other similar words and expressions. We do not assume any duty to update forward-looking statements, except as required by federal securities laws.

Our forward-looking statements are subject to the following principal risks and uncertainties:

•Our business, financial results and balance sheet values are affected by business, economic and political circumstances, including, but not limited to: (i) developments with respect to the U.S. and global financial markets; (ii) supervision, regulation, enforcement and other actions by several governmental agencies, including the FRB, FDIC, Financial Stability Oversight Council (FSOC), DOJ, CFPB, UST, OCC and Department of Housing and Urban Development (HUD), state attorney generals and other governmental agencies whose actions may affect, among other things, our consumer and mortgage lending and deposit practices, capital structure, investment practices, dividend policy, annual FDIC insurance premium assessment and growth, money supply, market interest rates or otherwise affect business activities of the financial services industry; (iii) a slowing of the U.S. economy in general and regional and local economies within our market area; (iv) inflation concerns; (v) the impacts of tariffs or other trade policies of the U.S. or its global trading partners; and (vi) the sociopolitical environment in the U.S.

•Business and operating results are affected by our ability to identify and effectively manage risks inherent in our businesses, including, where appropriate, through effective use of systems and controls, third-party insurance, derivatives, and capital management techniques, and to meet evolving regulatory capital and liquidity standards.

•Competition can have an impact on customer acquisition, growth and retention, and on credit spreads, deposit gathering and product pricing, which can affect market share, loans, deposits and revenues. Our ability to anticipate, react quickly and continue to respond to technological changes and significant adverse industry and economic events can also impact our ability to respond to customer needs and meet competitive demands.

•Business and operating results can also be affected by difficult to predict uncertainties, such as widespread natural and other disasters, wars, pandemics, including post-pandemic return to normalcy, global events and geopolitical instability, including the Ukraine-Russia conflict and the military conflict in Israel and Gaza, shortages of labor, supply chain disruptions and shipping delays, terrorist activities, system failures, security breaches, significant political events, cyber-attacks, international hostilities or other extraordinary events which are beyond our control and may significantly impact the U.S. or global economy and financial markets generally, or us or our counterparties, customers or third-party vendors specifically.

•Our ability to take certain capital actions, including returning capital to shareholders, is subject to us meeting or exceeding minimum capital levels. Our regulatory capital ratios in the future will depend on, among other things, our financial performance, the scope and terms of final capital regulations then in effect and management actions affecting the composition of our balance sheet.

•Historically we have grown our business in part through acquisitions, new strategic and business initiatives and new products. Potential risks and uncertainties include those presented by the nature of the business acquired, the strategic or business initiative or the new product, including in some cases those associated with our entry into new business lines or new geographic or other markets and risks resulting from our inexperience in those new areas, as well as risks

58

and uncertainties related to the acquisition transactions themselves, increased scrutiny associated with the regulatory approval process, other regulatory issues stemming from such acquisitions or new initiatives or product lines, the integration of the acquired businesses into us after closing or any failure to execute strategic or operational plans.

•Legal, regulatory and accounting developments could have an impact on our ability to operate and grow our businesses, financial condition, results of operations, competitive position, and reputation. Reputational impacts could affect matters such as business generation and retention, liquidity, funding, and the ability to attract and retain talent. These developments could include:

◦Policies and priorities of the current U.S. presidential administration, including legislative and regulatory reforms, more aggressive approaches to supervisory or enforcement priorities with consumer and anti-discrimination lending laws by the federal banking regulatory agencies and the DOJ, changes affecting oversight of the financial services industry, regulatory obligations or restrictions, consumer protection, taxes, employee benefits, compensation practices, pension, bankruptcy and other industry aspects, and changes in accounting policies and principles.

◦Ability to continue to attract, develop and retain key talent.

◦Changes to laws and regulations, including changes affecting the oversight of the financial services industry along with changes in enforcement and interpretation of such laws and regulations, and changes to accounting standards governing bank capital requirements, loan loss reserves and liquidity standards.

◦Changes in monetary and fiscal policies, including interest rate policies and strategies of the FOMC.

◦Unfavorable resolution of legal proceedings or other claims and regulatory and other governmental investigations or inquiries. These matters may result in monetary judgments or settlements, enforcement actions or other remedies, including fines, penalties, restitution or alterations in our business practices, including financial and other types of commitments, and in additional expenses and collateral costs, and may cause reputational harm to us.

◦Results of the regulatory examination and supervision process, including our failure to satisfy requirements imposed by the federal bank regulatory agencies or other governmental agencies.

◦Business and operating results are affected by our ability to effectively identify and manage risks inherent in our businesses, including, where appropriate, through effective use of policies, processes, systems and controls, third-party insurance, derivatives, and capital and liquidity management techniques.

◦The impact on our financial condition, results of operations, financial disclosures and future business strategies related to the impact on the ACL due to changes in forecasted macroeconomic conditions as a result of applying the “current expected credit loss” accounting standard, or CECL.

◦A failure or disruption in or breach of our operational or security systems or infrastructure, or those of third parties, including as a result of cyber-attacks or campaigns.

◦Increased funding costs and market volatility due to market illiquidity and competition for funding.

We caution that the risks identified here are not exhaustive of the types of risks that may adversely impact us and actual results may differ materially from those expressed or implied as a result of these risks and uncertainties, including, but not limited to, the risk factors and other uncertainties described under Item 1A. Risk Factors and the Risk Management sections of our 2023 Annual Report on Form 10-K (including the MD&A section), our subsequent 2024 Quarterly Reports on Form 10-Q (including the risk factors and risk management discussions) and our other 2024 filings with the SEC, which are available on our corporate website at https://www.fnb-online.com/about-us/investor-information/reports-and-filings or the SEC's website at www.sec.gov. We have included our web address as an inactive textual reference only. Information on our website is not part of our SEC filings.

APPLICATION OF CRITICAL ACCOUNTING POLICIES

A description of our critical accounting policies is included in the MD&A section of our 2023 Annual Report on Form 10-K filed with the SEC on February 26, 2024 under the heading “Application of Critical Accounting Policies”. There have been no significant changes in critical accounting policies or the assumptions and judgments utilized in applying these policies since December 31, 2023.

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USE OF NON-GAAP FINANCIAL MEASURES AND KEY PERFORMANCE INDICATORS

To supplement our Consolidated Financial Statements presented in accordance with GAAP, we use certain non-GAAP financial measures, such as operating net income available to common stockholders, operating earnings per diluted common share, return on average tangible common equity, operating return on average tangible common equity, return on average tangible assets, tangible book value per common share, the ratio of tangible common equity to tangible assets, pre-provision net revenue (reported), operating pre-provision net revenue, operating non-interest expense, efficiency ratio and net interest margin (FTE) to provide information useful to investors in understanding our operating performance and trends, and to facilitate comparisons with the performance of our peers. Management uses these measures internally to assess and better understand our underlying business performance and trends related to core business activities. The non-GAAP financial measures and key performance indicators we use may differ from the non-GAAP financial measures and key performance indicators other financial institutions use to assess their performance and trends.

These non-GAAP financial measures should be viewed as supplemental in nature, and not as a substitute for, or superior to, our reported results prepared in accordance with GAAP. When non-GAAP financial measures are disclosed, the SEC's Regulation G requires: (i) the presentation of the most directly comparable financial measure calculated and presented in accordance with GAAP and (ii) a reconciliation of the differences between the non-GAAP financial measure presented and the most directly comparable financial measure calculated and presented in accordance with GAAP. Reconciliations of non-GAAP operating measures to the most directly comparable GAAP financial measures are included later in this report under the heading “Reconciliations of Non-GAAP Financial Measures and Key Performance Indicators to GAAP”.

Management believes items such as merger expenses, preferred deemed dividend at redemption, FDIC special assessment, loss on indirect auto loan sale and branch consolidation costs are not organic to run our operations and facilities. These items are considered significant items impacting earnings as they are deemed to be outside of ordinary banking activities. These costs are specific to each individual transaction and may vary significantly based on the size and complexity of the transaction.

To facilitate peer comparisons of net interest margin and efficiency ratio, we use net interest income on a taxable-equivalent basis in calculating net interest margin by increasing the interest income earned on tax-exempt assets (loans and investments) to make it fully equivalent to interest income earned on taxable investments (this adjustment is not permitted under GAAP).  Taxable-equivalent amounts for 2024 and 2023 were calculated using a federal statutory income tax rate of 21%.

FINANCIAL SUMMARY

Net income available to common stockholders for the second quarter of 2024 was $123.0 million or $0.34 per diluted common share, compared to net income available to common stockholders for the second quarter of 2023 of $140.4 million or $0.39 per diluted common share. On an operating basis, earnings per diluted common share (non-GAAP) was $0.34 for the second quarter of 2024, excluding less than $0.01 of significant items impacting earnings per diluted common share, while the second quarter of 2023 was $0.39, excluding less than $0.01 of significant items impacting earnings per diluted common share.

Pre-provision net revenue (non-GAAP) increased over 4%, on a linked-quarter basis, supported by our well-managed expenses and strong non-interest income levels. Tangible book value per share grew 12% year-over-year to reach a record high at $9.88. We continue to execute on our strategy to steadily increase market share by leveraging our investments in eStore® and our experienced banking teams, shown by our linked-quarter loan and deposit growth of 3.6% and 0.7%, respectively, including non-interest-bearing deposit growth of 0.8%. Our capital position remained strong as we were able to support robust loan growth and maintain the tangible common equity ratio (non-GAAP) near 8% and the CET1 regulatory capital ratio at 10.2%. Our comprehensive approach to credit risk management has led to strong and stable asset quality results with non-performing loans and OREO to total loans and leases plus OREO ending at 0.33%, a multi-year low, and net charge-offs to total average loans and leases at 0.09%.

Income Statement Highlights (second quarter of 2024 compared to second quarter of 2023, except as noted)

•Net interest income decreased $13.4 million, or 4.1%, to $315.9 million primarily due to higher deposit costs, including balance migration to higher yielding deposit products, as well as higher total average borrowings, partially offset by growth in earning assets and higher earning asset yields.

•Net interest margin (FTE) (non-GAAP) decreased 28 basis points to 3.09% as a 49 basis point increase in the total yield on earnings assets (non-GAAP) was more than offset by total cost of funds increasing 82 basis points.

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•On a linked-quarter basis, the net interest margin (FTE) (non-GAAP) decreased 9 basis points to 3.09% largely due to increased short-term borrowings to fund the strong loan growth in the quarter as a 3 basis point increase in the total yield on earning assets (non-GAAP) to 5.43% was more than offset by a 13 basis point increase in the total cost of funds to 2.46%.

•The provision for credit losses of $20.2 million supported the strong loan growth as well as net charge-off activity.

•Non-interest income totaled $87.9 million, benefiting from our diversified business model.

•Pre-provision net revenue (non-GAAP) totaled $177.2 million, a 4.4% increase from the prior quarter. On an operating basis, pre-provision net revenue (non-GAAP) totaled $178.0 million, a 3.0% increase from the prior quarter, driven by a decrease in non-interest expense and continued strong non-interest income generation, more than offsetting the decrease in net interest income. Reported non-interest expense included an additional FDIC insurance special assessment expense (pre-tax) of $0.8 million due to last year's bank failures, bringing the year-to-date FDIC special assessment expense to $5.2 million.

•Non-interest expense totaled $226.6 million, a decrease of $10.5 million, or 4.4%, on a linked-quarter basis. The second quarter of 2024 included significant items of $0.8 million (pre-tax) of FDIC special assessment. The second quarter of 2023 included a significant item of $0.2 million (pre-tax) of merger expenses. On an operating basis, non-interest expense (non-GAAP) totaled $225.8 million and increased $14.0 million, or 6.6%, when adjusting for significant items.

•The efficiency ratio (non-GAAP) remained at a solid level of 54.4%, compared to 50.0% at June 30, 2023, and 56.0% at March 31, 2024.

Balance Sheet Highlights

•Period-end total loans and leases increased $2.4 billion, or 7.7%, compared to June 30, 2023. Commercial loans and leases increased $1.4 billion, or 7.2%, and consumer loans increased $989.5 million, or 8.5%. Our loan growth was driven by the continued success of our strategy to grow high-quality loans and deepen customer relationships across our diverse geographic footprint.

•On a linked-quarter basis, period-end total loans and leases increased $1.2 billion, or 3.6%, as consumer loans increased $632.7 million and commercial loans and leases increased $540.1 million, including healthy growth in commercial and industrial loans and equipment finance, as well as the seasonal peak for residential mortgage originations.

•Period-end total deposits increased $1.2 billion, or 3.5%, compared to June 30, 2023, driven by an increase of $1.6 billion in time deposits and $879.2 million in interest-bearing demand deposits which more than offset the decline in non-interest-bearing demand deposits of $851.5 million and savings deposits of $410.6 million as customers continued to opt for higher-yielding deposit products given the interest rate environment.

•On a linked-quarter basis, period-end total deposits increased $258.6 million, or 0.7%, with an increase in non-interest-bearing deposits of 0.8%. The mix of non-interest-bearing deposits to total deposits equaled 29% at June 30, 2024, consistent with the prior two quarter-ends.

•The loan-to-deposit ratio was 96% at June 30, 2024, compared to the prior quarter at 94%, driven by the strong seasonal loan growth.

•The ratio of non-performing loans plus OREO to total loans and leases plus OREO decreased 14 basis points to 0.33%. Total delinquency decreased 12 basis points to 0.63%, compared to 0.75% at June 30, 2023. Both measures continue to remain at or near historically low levels.

•The second quarter of 2024 reflected net charge-offs of $7.8 million, or 0.09% annualized of total average loans.

•The ACL was $418.8 million, an increase of $6.0 million compared to June 30, 2023, with the ratio of the ACL to total loans and leases decreasing 8 basis points to 1.24% reflecting net loan growth and charge-off activity.

•Tangible book value per common share (non-GAAP) of $9.88, increased $1.09, or 12.4%, compared to June 30, 2023. AOCI reduced the tangible book value per common share (non-GAAP) by $0.67 as of June 30, 2024, primarily due to

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the impact of higher interest rates on the fair value of AFS securities, compared to a $0.70 reduction as of March 31, 2024, and a $0.99 reduction as of June 30, 2023.

•Our capital position remained strong as we were able to support robust loan growth and maintain the tangible common equity ratio near 8% and the CET1 regulatory capital ratio at 10.2%.

•During the second quarter of 2024, we repurchased 250,000 shares of our common stock at a weighted average share price of $13.56 while maintaining capital at or above stated operating levels and supporting loan growth in the quarter.

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TABLE 1

	Three Months Ended June 30,
Quarterly Results Summary	2024			2023
Reported results
Net income available to common stockholders (millions)	$	123.0		$	140.4
Net income per diluted common share	0.34			0.39
Book value per common share	16.94			15.92
Operating results (non-GAAP)
Operating net income available to common stockholders (millions)	123.7			140.5
Operating net income per diluted common share	0.34			0.39
Average diluted common shares outstanding (thousands)	362,701			362,626
Significant items impacting earnings(1) (millions)
Pre-tax merger-related expenses	$	—		$	(0.2)
After-tax impact of merger-related expenses	—			(0.1)
Pre-tax FDIC assessment	(0.8)			—
After-tax impact of FDIC assessment	(0.6)			—
Total significant items after-tax	$	(0.6)		$	(0.1)
Capital measures
Common equity tier 1	10.19		%	10.05		%
Tangible common equity to tangible assets (non-GAAP)	7.86			7.47
Tangible book value per common share (non-GAAP)	$	9.88		$	8.79
	Six Months Ended June 30,
Year-to-Date Results Summary	2024			2023
Reported results
Net income available to common stockholders (millions)	$	239.4		$	284.9
Net income per diluted common share	0.66			0.78
Operating results (non-GAAP)
Operating net income available to common stockholders (millions)	246.4			286.6
Operating net income per diluted common share	0.68			0.79
Average diluted common shares outstanding (thousands)	362,660			363,777
Significant items impacting earnings(1) (millions)
Preferred dividend equivalent at redemption	$	(4.0)		$	—
Pre-tax merger-related expenses	—			(2.2)
After-tax impact of merger-related expenses	—			(1.8)
Pre-tax branch consolidation costs	(1.2)			—
After-tax impact of branch consolidation costs	(0.9)			—
Pre-tax FDIC assessment	(5.2)			—
After-tax impact of FDIC assessment	(4.1)			—
Pre-tax reduction of previous estimated loss on indirect auto loan sale	2.6			—
After-tax impact of previous estimated loss on indirect auto loan sale	2.1			—
Total significant items after-tax	$	(6.9)		$	(1.8)
(1) Favorable (unfavorable) impact on earnings

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RESULTS OF OPERATIONS

Three Months Ended June 30, 2024 Compared to the Three Months Ended June 30, 2023

Net income available to common stockholders for the three months ended June 30, 2024 was $123.0 million or $0.34 per diluted common share, compared to $140.4 million or $0.39 per diluted common share for the three months ended June 30, 2023. On an operating basis, second quarter of 2024 earnings per diluted common share (non-GAAP) was $0.34, excluding $0.8 million (pre-tax) of FDIC insurance special assessment expense. By comparison, second quarter of 2023 earnings per diluted common share (non-GAAP) was $0.39 on an operating basis, excluding $2.1 million (pre-tax) in merger-related significant items.

Net interest income totaled $315.9 million a decrease of $13.4 million, or 4.1%, primarily due to higher deposit costs resulting from balance migration to higher yielding deposit products, as well as increased total average borrowings, partially offset by growth in earning assets and higher earning asset yields. The net interest margin (FTE) (non-GAAP) decreased 28 basis points to 3.09%. The yield on earning assets (non-GAAP) increased 49 basis points to 5.43%, reflecting the higher interest rate environment as the FOMC raised the target federal funds rate by 25 basis points on July 27, 2023. The earning assets yield increase was driven by a 65 basis point increase on investment securities to 3.14% which benefited from the balance sheet restructuring in late 2023 and a 43 basis point increase on loans to 5.96%. Total cost of funds increased 82 basis points to 2.46% with a 96 basis point increase in interest-bearing deposit costs to 2.93%, and an increase of 122 basis points in short-term borrowing costs. The provision for credit losses was $20.2 million, compared to $18.5 million with the current quarter's level supporting strong loan growth. Non-interest income increased by $7.6 million, or 9.5%, reflecting increased service charges income, mortgage banking operations income, wealth management revenues and dividends on non-marketable equity securities, offset by reduced capital markets income and interchange and card transaction fees. Non-interest expense for the second quarter of 2024 increased $14.7 million, or 6.9%. The biggest drivers of the non-interest expense increase were salaries and benefits expense with an increase of $7.0 million, or 6.1%, primarily from production-related commissions and normal annual merit increases, and net occupancy and equipment expense with an increase of $4.9 million, or 13.0%, largely from technology-related investments. Income taxes of $34.0 million declined $2.7 million, or 7.4% from lower pre-tax income levels.

Financial highlights are summarized below:

TABLE 2

	Three Months Ended June 30,				$		%
(in thousands, except per share data)	2024		2023		Change		Change
Net interest income	$	315,890	$	329,244	$	(13,354)	(4.1)	%
Provision for credit losses	20,189		18,516		1,673		9.0
Non-interest income	87,922		80,309		7,613		9.5
Non-interest expense	226,612		211,955		14,657		6.9
Income taxes	33,974		36,690		(2,716)		(7.4)
Net income	123,037		142,392		(19,355)		(13.6)
Less: Preferred stock dividends	—		2,010		(2,010)		(100.0)
Net income available to common stockholders	$	123,037	$	140,382	$	(17,345)	(12.4)	%
Earnings per common share – Basic	$	0.34	$	0.39	$	(0.05)	(12.8)	%
Earnings per common share – Diluted	0.34		0.39		(0.05)		(12.8)
Cash dividends per common share	0.12		0.12		—		—

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The following table presents selected financial ratios and other relevant data used to analyze our performance:

TABLE 3

	Three Months Ended June 30,
	2024			2023
Return on average equity	8.20		%	9.79		%
Return on average tangible common equity (1)	14.54			18.28
Return on average assets	1.06			1.29
Return on average tangible assets (1)	1.16			1.40
Book value per common share	$	16.94		$	15.92
Tangible book value per common share (1)	9.88			8.79
Equity to assets	12.76		%	12.99		%
Average equity to average assets	12.99			13.13
Common equity to assets	12.76			12.75
Tangible common equity to tangible assets (1)	7.86			7.47
Common equity tier 1 capital ratio	10.19			10.05
Dividend payout ratio	35.42			30.88

(1) Non-GAAP

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The following table provides information regarding the average balances and yields earned on interest-earning assets (non-GAAP) and the average balances and rates paid on interest-bearing liabilities:

TABLE 4

	Three Months Ended June 30,
	2024						2023
(dollars in thousands)	Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Assets
Interest-earning assets:
Interest-bearing deposits with banks	$	868,390	$	8,207	3.80	%	$	1,234,026	$	13,131	4.27	%
Taxable investment securities (1)	6,154,907		47,564		3.09		6,084,971		35,244		2.32
Tax-exempt investment securities (1)(2)	1,033,552		8,911		3.45		1,059,893		9,207		3.47
Loans held for sale	110,855		2,519		9.09		102,187		1,844		7.23
Loans and leases (2)(3)	33,255,738		492,902		5.96		31,048,352		428,043		5.53
Total interest-earning assets (2)	41,423,442		560,103		5.43		39,529,429		487,469		4.94
Cash and due from banks	387,374						427,287
Allowance for credit losses	(414,372)						(410,566)
Premises and equipment	484,851						459,966
Other assets	4,590,486						4,404,196
Total assets	$	46,471,781					$	44,410,312
Liabilities
Interest-bearing liabilities:
Deposits:
Interest-bearing demand	$	14,662,774	98,211		2.69		$	13,922,773	63,861		1.84
Savings	3,360,593		10,136		1.21		3,843,785		9,117		0.95
Certificates and other time	6,645,682		71,613		4.33		5,003,024		38,820		3.11
Total interest-bearing deposits	24,669,049		179,960		2.93		22,769,582		111,798		1.97
Short-term borrowings	2,640,985		32,837		4.99		2,340,603		22,041		3.77
Long-term borrowings	2,164,983		28,501		5.29		1,703,667		21,117		4.97
Total interest-bearing liabilities	29,475,017		241,298		3.29		26,813,852		154,956		2.32
Non-interest-bearing demand	9,921,073						11,006,705
Total deposits and borrowings	39,396,090				2.46		37,820,557				1.64
Other liabilities	1,037,452						756,569
Total liabilities	40,433,542						38,577,126
Stockholders’ equity	6,038,239						5,833,186
Total liabilities and stockholders’ equity	$	46,471,781					$	44,410,312
Net interest-earning assets	$	11,948,425					$	12,715,577
Net interest income (FTE) (2)			318,805						332,513
Tax-equivalent adjustment			(2,915)						(3,269)
Net interest income			$	315,890					$	329,244
Net interest spread					2.14	%					2.62	%
Net interest margin (2)					3.09	%					3.37	%

(1)The average balances and yields earned on securities are based on historical cost.

(2)The interest income amounts are reflected on an FTE basis (non-GAAP), which adjusts for the tax benefit of income on certain tax-exempt loans and investments using the federal statutory tax rate of 21%. The yield on earning assets and the net interest margin are presented on an FTE basis (non-GAAP). We believe this measure to be the preferred industry measurement of net interest income and provides relevant comparison between taxable and non-taxable amounts.

(3)Average loans and leases consist of average total loans, including non-accrual loans, less average unearned income.

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Net Interest Income

Net interest income on an FTE basis (non-GAAP) decreased $13.7 million, or 4.1%, to $318.8 million for the second quarter of 2024 primarily due to higher deposit costs resulting from the continued deposit balance migration to higher yielding products as well as increased total average borrowings, partially offset by growth in earning assets and higher earning asset yields. Average earning assets of $41.4 billion increased $1.9 billion, or 4.8%, driven by an increase in average loans and leases from solid origination activity. Average interest-bearing liabilities of $29.5 billion increased $2.7 billion, or 9.9%, driven by an increase of $1.9 billion in average interest-bearing deposits and an increase in average borrowings of $761.7 million to support strong loan growth. Our net interest margin FTE (non-GAAP) decreased 28 basis points to 3.09%, as the total cost of funds increased 82 basis points to 2.46% which more than offset the increase in the yield on earning assets (non-GAAP) of 49 basis points to 5.43%.

The following table provides certain information regarding changes in net interest income on an FTE basis (non-GAAP) attributable to changes in the average volumes and yields earned on interest-earning assets and the average volume and rates paid for interest-bearing liabilities for the three months ended June 30, 2024, compared to the three months ended June 30, 2023:

TABLE 5

(in thousands)	Volume		Rate		Net
Interest Income (1)
Interest-bearing deposits with banks	$	(3,814)	$	(1,110)	$	(4,924)
Securities (2)	370		11,654		12,024
Loans held for sale	158		517		675
Loans and leases (2)	30,962		33,897		64,859
Total interest income (2)	27,676		44,958		72,634
Interest Expense (1)
Deposits:
Interest-bearing demand	7,815		26,535		34,350
Savings	228		791		1,019
Certificates and other time	14,322		18,471		32,793
Short-term borrowings	4,048		6,748		10,796
Long-term borrowings	5,838		1,546		7,384
Total interest expense	32,251		54,091		86,342
Net change (2)	$	(4,575)	$	(9,133)	$	(13,708)

(1)The amount of change not solely due to rate or volume changes was allocated between the change due to rate and the change due to volume based on the net size of the rate and volume changes.

(2)Interest income amounts are reflected on an FTE basis (non-GAAP) which adjusts for the tax benefit of income on certain tax-exempt loans and investments using the federal statutory tax rate of 21%. We believe this measure to be the preferred industry measurement of net interest income and provides relevant comparison between taxable and non-taxable amounts.

Interest income on an FTE basis (non-GAAP) of $560.1 million for the second quarter of 2024, increased $72.6 million, or 14.9%, from the same quarter of 2023, resulting from the interest rate increases by the FOMC and an increase in average earning assets of $1.9 billion. The increase in earning assets was primarily driven by a $2.2 billion, or 7.1%, increase in average loans and leases, partially offset by a decrease of $365.6 million in average cash balances. Average commercial loan growth of $1.3 billion, or 6.4%, was led by increases of $970.6 million in commercial real estate, $224.7 million in commercial and industrial loans and $68.3 million in commercial leases. The increase in average commercial loans and leases was driven by activity across the footprint, with double-digit year-over-year growth across the Carolinas. The Pittsburgh and Cleveland regions and commercial equipment finance also posted strong contributions. The increase in commercial real estate included fundings on previously originated projects. Average consumer loans increased $943.7 million, or 8.3%, with a $1.3 billion increase in residential mortgages largely due to the continued successful execution in key markets by our expanded mortgage banker team and long-standing strategy of serving the purchase market. This growth was partially offset by a decrease in indirect auto loans of $363.0 million reflecting the sale of $332 million that closed in the first quarter of 2024. The yield on average earning assets (non-GAAP) increased 49 basis points to 5.43% for the second quarter of 2024, primarily due to higher yields on loans and investment securities reflecting the higher interest rate environment. The increase was driven by a 65 basis

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point increase on investment securities to 3.14%, which benefited from the balance sheet restructuring in late 2023 and a 43 basis point increase on loans to 5.96%.

Interest expense of $241.3 million for the second quarter of 2024 increased $86.3 million from the same quarter of 2023, primarily due to the higher interest rate environment and an increase in average interest-bearing deposits and borrowings. Average interest-bearing deposits increased $1.9 billion, or 8.3%, while average non-interest-bearing deposits decreased $1.1 billion, or 9.9%, as customers continued to migrate balances into higher-yielding products. The growth in average total deposits reflected organic growth in new and existing customer relationships. Average short-term borrowings increased $300.4 million, or 12.8%, primarily reflecting increases of $251.9 million and $99.1 million in short-term FHLB advances and Federal Funds purchased, respectively, partially offset by a decrease of $56.5 million in repurchase agreements. Average long-term borrowings increased $461.3 million, or 27.1%, primarily reflecting an increase in long-term FHLB advances as we have maintained additional liquidity following the banking industry disruption and in a continued effort to support strong loan growth. The rate paid on interest-bearing liabilities increased 97 basis points from 2.32% to 3.29%. The total cost of funds increased 82 basis points to 2.46% with a 96 basis point increase in interest-bearing deposit costs to 2.93%, and an increase of 122 basis points in short-term borrowing costs to fund the strong loan growth. Since the current interest rate increases began in March 2022, our total cumulative spot deposit beta equaled 38% at June 30,2024, consistent with our expectations.

Provision for Credit Losses

Provision for credit losses is determined based on management’s estimates of the appropriate level of ACL needed to absorb expected life-of-loan losses in the loan and lease portfolio, after giving consideration to charge-offs and recoveries for the period. The following table presents information regarding the provision for credit loss expense and net charge-offs:

TABLE 6

	Three Months Ended June 30,						$		%
(dollars in thousands)	2024			2023			Change		Change
Provision for credit losses on loans and leases	$	20,312		$	18,026		$	2,286	12.7	%
Provision for unfunded loan commitments	(119)			490			(609)		(124.3)
Total provision for credit losses on loans and leases	20,193			18,516			1,677		9.1
Provision for securities	(4)			—			(4)		n/m
Total provision for credit losses	$	20,189		$	18,516		$	1,673	9.0	%
Net loan charge-offs	$	7,849		$	8,700		$	(851)	(9.8)	%
Net loan charge-offs (annualized) / total average loans and leases	0.09		%	0.11		%
n/m - not meaningful

Provision for credit losses was $20.2 million during the second quarter of 2024, an increase of $1.7 million from the same period of 2023. The second quarter of 2024 is comprised of a $20.3 million provision for loans and leases outstanding and a $0.1 million net benefit on provision for unfunded loan commitments. The net increase supported the strong loan growth. The second quarter of 2024 reflected net charge-offs of $7.8 million, or 0.09% annualized of total average loans, compared to $8.7 million, or 0.11% annualized, in the second quarter of 2023. For additional information relating to the allowance and provision for credit losses, refer to the Allowance for Credit Losses on Loans and Leases section of this Management’s Discussion and Analysis.

68

Non-Interest Income

The breakdown of non-interest income for the three months ended June 30, 2024 and 2023 is presented in the following table:

TABLE 7

	Three Months Ended June 30,				$		%
(dollars in thousands)	2024		2023		Change		Change
Service charges	$	23,332	$	20,534	$	2,798	13.6	%
Interchange and card transaction fees	13,005		13,522		(517)		(3.8)
Trust services	11,475		10,630		845		7.9
Insurance commissions and fees	5,973		5,996		(23)		(0.4)
Securities commissions and fees	7,980		7,021		959		13.7
Capital markets income	5,143		5,884		(741)		(12.6)
Mortgage banking operations	6,956		4,907		2,049		41.8
Dividends on non-marketable equity securities	6,895		5,467		1,428		26.1
Bank owned life insurance	3,419		2,995		424		14.2
Net securities gains (losses)	(3)		(6)		3		—
Other	3,747		3,359		388		11.6
Total non-interest income	$	87,922	$	80,309	$	7,613	9.5	%

Total non-interest income increased by $7.6 million, or 9.5%, to $87.9 million for the second quarter of 2024, compared to $80.3 million for the second quarter of 2023. The variances in the individual non-interest income items are explained in the following paragraphs.

Service charges of $23.3 million increased $2.8 million, or 13.6%, with strong treasury management activity and higher consumer transaction activity.

Wealth management revenues increased $1.8 million, or 10.2%, as securities commissions and fees and trust income increased 13.7% and 7.9%, respectively, through contributions across the geographic footprint and the $506.8 million, or 5.9%, increase in the market value of assets under management.

Capital markets income decreased $0.7 million, or 12.6%, reflecting lower commercial customer transaction activity.

Mortgage banking operations income increased $2.0 million, or 41.8%, driven by improved gain on sale from strong production volumes. During the second quarter of 2024, we sold $324.9 million of residential mortgage loans, compared to $228.7 million for the same period of 2023.

Dividends on non-marketable equity securities increased $1.4 million, or 26.1%, reflecting higher FHLB dividends due to additional borrowings.

69

Non-Interest Expense

The breakdown of non-interest expense for the three months ended June 30, 2024 and 2023 is presented in the following table:

TABLE 8

	Three Months Ended June 30,				$		%
(dollars in thousands)	2024		2023		Change		Change
Salaries and employee benefits	$	120,917	$	113,946	$	6,971	6.1	%
Net occupancy	18,632		16,689		1,943		11.6
Equipment	24,335		21,345		2,990		14.0
Amortization of intangibles	4,379		5,044		(665)		(13.2)
Outside services	23,250		20,539		2,711		13.2
Marketing	4,006		3,943		63		1.6
FDIC insurance	9,954		7,717		2,237		29.0
Bank shares and franchise taxes	3,930		3,926		4		0.1
Merger-related	—		163		(163)		(100.0)
Other	17,209		18,643		(1,434)		(7.7)
Total non-interest expense	$	226,612	$	211,955	$	14,657	6.9	%

Total non-interest expense of $226.6 million for the second quarter of 2024 increased $14.7 million, or 6.9%, from the same period of 2023. Non-interest expense increased $14.0 million, or 6.6%, when excluding significant items of $0.8 million of FDIC special assessment expense in the second quarter of 2024 related to last year's bank failures and merger-related costs of $0.2 million in the second quarter 2023. The variances in the individual non-interest expense items are explained in the following paragraphs.

Salaries and employee benefits of $120.9 million increased $7.0 million, or 6.1%, primarily from normal annual merit increases and higher production-related commissions from strong non-interest income activity.

Net occupancy and equipment of $43.0 million increased $4.9 million, or 13.0%, largely from continued technology-related investments.

Outside services of $23.3 million increased $2.7 million, or 13.2%, with higher third-party and volume-related technology costs.

FDIC insurance of $10.0 million increased $2.2 million, or 29.0%, reflecting a $0.8 million estimated special assessment to further replenish the FDIC's Deposit Insurance Fund associated with protecting uninsured depositors following the failed banks in early 2023 based on updated loss information provided by the FDIC, as well as loan growth and balance sheet mix changes.

The following table presents non-interest expense excluding significant items for the three months ended June 30, 2024 and 2023:

TABLE 9

	Three Months Ended June 30,				$		%
(dollars in thousands)	2024		2023		Change		Change
Total non-interest expense, as reported	$	226,612	$	211,955	$	14,657	6.9	%
Significant items:
Merger-related	—		(163)		163
FDIC special assessment	(804)		—		(804)
Total non-interest expense, excluding significant items (1)	$	225,808	$	211,792	$	14,016	6.6	%

(1) Non-GAAP

Current period significant items relate to a continuation of prior period significant items.

70

Income Taxes

The following table presents information regarding income tax expense and certain tax rates:

TABLE 10

	Three Months Ended June 30,
(dollars in thousands)	2024			2023
Income tax expense	$	33,974		$	36,690
Effective tax rate	21.6		%	20.5		%
Statutory federal tax rate	21.0			21.0

Income tax expense was lower due to lower pre-tax earnings, partially offset by lower stock compensation vesting deductions, higher disallowance of FDIC premium deductions, and higher levels of proportional amortization for certain tax credit investments resulting from the adoption of FASB ASU 2023-02 on January 1, 2024. The effective tax rate increased for the three months ended June 30, 2024 as a result of these offsetting items.

Six Months Ended June 30, 2024 Compared to the Six Months Ended June 30, 2023

Net income available to common stockholders for the first six months of 2024 was $239.4 million or $0.66 per diluted common share, compared to $284.9 million or $0.78 per diluted common share for the first six months of 2023. On an operating basis (non-GAAP), net income available to common stockholders for the first six months of 2024 was $246.4 million, or $0.68 per diluted common share, compared to $286.6 million or $0.79 per diluted common share for the first six months of 2023. Net interest income totaled $634.9 million, a decrease of $31.0 million, or 4.7%, compared to $665.9 million. The net interest margin (FTE) (non-GAAP) decreased 33 basis points to 3.13%, as the total cost of funds increased 99 basis points to 2.40% with a 115-basis point increase in interest-bearing deposit costs to 2.88%, as well as an increase of 32 basis points in long-term debt costs. These funding cost increases were partially offset by an increase in the yield on earning assets (non-GAAP) of 60 basis points to 5.41%, primarily due to higher yields on loans and investment securities. Between June 30, 2023 and June 30, 2024, the FOMC raised the target Federal Funds interest rate by 25 basis points in July of 2023. The provision for credit losses for the first six months of 2024 totaled $34.1 million, compared to $32.6 million. Non-interest income totaled $175.8 million, a 10.1% increase compared to $159.7 million, reflecting increased mortgage banking operations income, continued strong wealth management revenues, and higher levels of service charges and dividends on non-marketable equity securities, partially offset by lower insurance commissions and fees. Non-interest expense totaled $463.7 million, increasing $31.8 million, or 7.4%. On an operating basis (non-GAAP), non-interest expense totaled $459.9 million, an increase of $30.2 million, or 7.0%, compared to the first six months of 2023. Salaries and benefits increased $15.9 million, or 6.8%, due largely to normal annual merit increases and higher production-related commissions from strong non-interest income activity. Additionally, net occupancy and equipment expense increased $8.9 million, or 11.4%, largely from technology-related investments. FDIC insurance increased $7.8 million, or 52.4%, primarily due to incremental FDIC special assessment expense of $5.2 million to further replenish the FDIC's Deposit Insurance Fund after the 2023 bank failures.

71

Financial highlights are summarized below:

TABLE 11

	Six Months Ended June 30,				$		%
(in thousands, except per share data)	2024		2023		Change		Change
Net interest income	$	634,898	$	665,898	$	(31,000)	(4.7)	%
Provision for credit losses	34,079		32,577		1,502		4.6
Non-interest income	175,784		159,698		16,086		10.1
Non-interest expense	463,708		431,872		31,836		7.4
Income taxes	67,527		72,250		(4,723)		(6.5)
Net income	245,368		288,897		(43,529)		(15.1)
Less: Preferred stock dividends	6,005		4,020		1,985		49.4
Net income available to common stockholders	$	239,363	$	284,877	$	(45,514)	(16.0)	%
Earnings per common share – Basic	$	0.66	$	0.79	$	(0.13)	(16.5)	%
Earnings per common share – Diluted	0.66		0.78		(0.12)		(15.4)
Cash dividends per common share	0.24		0.24		—		—

The following table presents selected financial ratios and other relevant data used to analyze our performance:

TABLE 12

	Six Months Ended June 30,
	2024			2023
Return on average equity	8.17		%	10.07		%
Return on average tangible common equity (1)	14.27			18.96
Return on average assets	1.07			1.33
Return on average tangible assets (1)	1.17			1.45
Book value per common share	$	16.94		$	15.92
Tangible book value per common share (1)	9.88			8.79
Equity to assets	12.76		%	12.99		%
Average equity to average assets	13.11			13.17
Common equity to assets	12.76			12.75
Tangible common equity to tangible assets (1)	7.86			7.47
Common equity tier 1 capital ratio	10.19			10.05
Dividend payout ratio	36.56			30.59

(1) Non-GAAP

72

The following table provides information regarding the average balances and yields earned on interest-earning assets (non-GAAP) and the average balances and rates paid on interest-bearing liabilities:

TABLE 13          

	Six Months Ended June 30,
	2024						2023
(dollars in thousands)	Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Assets
Interest-earning assets:
Interest-bearing deposits with banks	$	870,372	$	17,385	4.02	%	$	1,027,117	$	19,784	3.88	%
Taxable investment securities (1)	6,138,237		93,388		3.04		6,149,284		70,719		2.30
Tax-exempt investment securities (1)(2)	1,037,388		17,883		3.45		1,057,554		18,366		3.47
Loans held for sale	173,981		6,805		7.84		109,137		3,438		6.32
Loans and leases (2) (3)	32,818,345		971,049		5.94		30,731,126		821,939		5.39
Total interest-earning assets (2)	41,038,323		1,106,510		5.41		39,074,218		934,246		4.81
Cash and due from banks	399,027						434,956
Allowance for credit losses	(412,119)						(408,149)
Premises and equipment	477,183						451,252
Other assets	4,572,271						4,366,564
Total assets	$	46,074,685					$	43,918,841
Liabilities
Interest-bearing liabilities:
Deposits:
Interest-bearing demand	$	14,608,616	192,953		2.66		$	14,258,082	116,151		1.64
Savings	3,386,231		20,135		1.20		3,932,627		16,958		0.87
Certificates and other time	6,472,481		137,270		4.26		4,595,128		62,781		2.76
Total interest-bearing deposits	24,467,328		350,358		2.88		22,785,837		195,890		1.73
Short-term borrowings	2,520,544		60,538		4.82		1,953,125		31,785		3.28
Long-term borrowings	2,111,400		54,891		5.23		1,394,571		34,130		4.94
Total interest-bearing liabilities	29,099,272		465,787		3.22		26,133,533		261,805		2.02
Non-interest-bearing demand	9,930,212						11,207,490
Total deposits and borrowings	39,029,484				2.40		37,341,023				1.41
Other liabilities	1,006,295						795,124
Total liabilities	40,035,779						38,136,147
Stockholders’ equity	6,038,906						5,782,694
Total liabilities and stockholders’ equity	$	46,074,685					$	43,918,841
Net interest-earning assets	$	11,939,051					$	12,940,685
Net interest income (FTE) (2)			640,723						672,441
Tax-equivalent adjustment			(5,825)						(6,543)
Net interest income			$	634,898					$	665,898
Net interest spread					2.19	%					2.79	%
Net interest margin (2)					3.13	%					3.46	%

(1)The average balances and yields earned on securities are based on historical cost.

(2)The interest income amounts are reflected on an FTE basis (non-GAAP), which adjusts for the tax benefit of income on certain tax-exempt loans and investments using the federal statutory tax rate of 21%. The yield on earning assets and the net interest margin are presented on an FTE basis (non-GAAP). We believe this measure to be the preferred industry measurement of net interest income and provides relevant comparison between taxable and non-taxable amounts.

(3)Average loans and leases consist of average total loans, including non-accrual loans, less average unearned income.

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Net Interest Income

Net interest income on an FTE basis (non-GAAP) totaled $640.7 million, decreasing $31.7 million, or 4.7%, primarily due to higher interest-bearing deposit costs from continued balance migration to higher yielding deposit products in the current interest rate environment and higher total average borrowings, partially offset by growth in earning assets and higher earning asset yields. Average earning assets grew $2.0 billion, or 5.0%, primarily driven by loan growth. Total average commercial loans increased $1.2 billion, or 6.1%. Average consumer loans increased $901.8 million, or 8.0%, with an increase in residential mortgage loans of $1.3 billion, or 23.6%, largely due to the continued successful execution in key markets by our expanded mortgage banker team and long-standing strategy of serving the purchase market. Partially offsetting the growth in residential mortgage loans, indirect installment loans decreased $382.4 million, or 24.9%, reflecting the $332 million sale that closed in the first quarter of 2024. Additionally, we reinvested the proceeds of the AFS securities sold in December 2023 as part of our balance sheet repositioning with an average yield of 1.08% into securities with yields approximately 350 basis points higher and a similar duration and convexity profile. For interest-bearing liabilities, average time deposits increased $1.9 billion, or 40.9%, given the continued migration into higher-yielding deposit products. Total average borrowings increased $1.3 billion due to maintaining additional liquidity on the balance sheet following the banking industry disruption in 2023 and to support strong loan growth. The net interest margin (FTE) (non-GAAP) decreased 33 basis points to 3.13%.

The following table provides certain information regarding changes in net interest income on an FTE basis (non-GAAP) attributable to changes in the average volumes and yields earned on interest-earning assets and the average volume and rates paid for interest-bearing liabilities for the six months ended June 30, 2024, compared to the six months ended June 30, 2023:

TABLE 14

(in thousands)	Volume		Rate		Net
Interest Income (1)
Interest-bearing deposits with banks	$	(2,964)	$	565	$	(2,399)
Securities (2)	(401)		22,587		22,186
Loans held for sale	1,039		2,328		3,367
Loans and leases (2)	59,176		89,934		149,110
Total interest income (2)	56,850		115,414		172,264
Interest Expense (1)
Deposits:
Interest-bearing demand	10,600		66,202		76,802
Savings	501		2,676		3,177
Certificates and other time	30,825		43,664		74,489
Short-term borrowings	14,272		14,481		28,753
Long-term borrowings	18,216		2,545		20,761
Total interest expense	74,414		129,568		203,982
Net change (2)	$	(17,564)	$	(14,154)	$	(31,718)

(1)The amount of change not solely due to rate or volume changes was allocated between the change due to rate and the change due to volume based on the net size of the rate and volume changes.

(2)Interest income amounts are reflected on an FTE basis (non-GAAP) which adjusts for the tax benefit of income on certain tax-exempt loans and investments using the federal statutory tax rate of 21%. We believe this measure to be the preferred industry measurement of net interest income and provides relevant comparison between taxable and non-taxable amounts.

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Provision for Credit Losses

The following table presents information regarding the provision for credit loss expense and net charge-offs:

TABLE 15

	Six Months Ended June 30,						$		%
(dollars in thousands)	2024			2023			Change		Change
Provision for credit losses on loans and leases	$	33,821		$	32,917		$	904	2.7	%
Provision for unfunded loan commitments	268			(434)			702		161.8
Total provision for credit losses on loans and leases	34,089			32,483			1,606		4.9
Provision for securities	(10)			95			(105)		(110.5)
Total provision for credit losses	$	34,079		$	32,578		$	1,501	4.6	%
Net loan charge-offs	$	20,626		$	21,897		$	(1,271)	(5.8)	%
Net loan charge-offs (annualized) / total average loans and leases	0.13		%	0.14		%

The provision for credit losses was $34.1 million, compared to $32.6 million in the first six months of 2023. The provision for credit losses for the first six months of 2024 was primarily due to loan growth and charge-off activity. The provision for credit losses in the first six months of 2023 was primarily due to loan growth, CECL-related model impacts from forecasted macroeconomic conditions and charge-off activity. Our non-performing loan coverage position remains strong at 388%. The first six months of 2024 reflected net charge-offs of $20.6 million, or 0.13% annualized of total average loans, compared to $21.9 million, or 0.14% annualized, in the first six months of 2023. The ACL was $418.8 million, an increase of $6.0 million, with the ratio of the ACL to total loans and leases decreasing 8 basis points to 1.24%, reflecting net loan growth and charge-off activity.

Non-Interest Income

The breakdown of non-interest income for the six months ended June 30, 2024 and 2023 is presented in the following table:

TABLE 16

	Six Months Ended June 30,				$		%
(dollars in thousands)	2024		2023		Change		Change
Service charges	$	43,901	$	40,798	$	3,103	7.6	%
Interchange and card transaction fees	25,705		25,898		(193)		(0.7)
Trust services	22,899		21,241		1,658		7.8
Insurance commissions and fees	12,725		13,783		(1,058)		(7.7)
Securities commissions and fees	16,135		14,403		1,732		12.0
Capital markets income	11,474		12,677		(1,203)		(9.5)
Mortgage banking operations	14,870		9,762		5,108		52.3
Dividends on non-marketable equity securities	13,088		9,575		3,513		36.7
Bank owned life insurance	6,762		5,820		942		16.2
Net securities gains (losses)	(3)		(23)		20		—
Other	8,228		5,764		2,464		42.7
Total non-interest income	$	175,784	$	159,698	$	16,086	10.1	%

Total non-interest income increased by $16.1 million, or 10.1%. The variances in significant individual non-interest income items are explained in the following paragraphs.

Service charges increased $3.1 million, or 7.6%, primarily due to strong treasury management activity and higher consumer transaction activity.

75

Wealth management revenues increased $3.4 million, or 9.5%, as securities commissions and fees and trust income increased 12.0% and 7.8%, respectively, through continued strong contributions across the geographic footprint.

Mortgage banking operations income increased $5.1 million, or 52.3%, driven by improved gain on sale from strong production volumes. During the first six months of 2024, we sold $654.1 million of residential mortgage loans, a 49.2% increase compared to $438.3 million for the same period of 2023.

Dividends on non-marketable equity securities increased $3.5 million, or 36.7%, reflecting higher FHLB dividends due to additional borrowings.

Non-Interest Expense

The breakdown of non-interest expense for the six months ended June 30, 2024 and 2023 is presented in the following table:

TABLE 17

	Six Months Ended June 30,				$		%
(dollars in thousands)	2024		2023		Change		Change
Salaries and employee benefits	$	250,043	$	234,193	$	15,850	6.8	%
Net occupancy	38,227		34,059		4,168		12.2
Equipment	48,107		43,417		4,690		10.8
Amortization of intangibles	8,821		10,163		(1,342)		(13.2)
Outside services	46,130		39,937		6,193		15.5
Marketing	9,437		7,644		1,793		23.5
FDIC insurance	22,616		14,836		7,780		52.4
Bank shares and franchise taxes	8,056		8,098		(42)		(0.5)
Merger-related	—		2,215		(2,215)		(100.0)
Other	32,271		37,310		(5,039)		(13.5)
Total non-interest expense	$	463,708	$	431,872	$	31,836	7.4	%

Total non-interest expense of $463.7 million for the first six months of 2024 increased $31.8 million, a 7.4% increase from the same period of 2023. On an operating basis, non-interest expense (non-GAAP) totaled $459.9 million and increased $30.2 million, or 7.0%, when adjusting for significant items of $3.8 million and $2.2 million in the first six months of 2024 and 2023, respectively. See Table 18 in this section for a list of significant items. The variances in the individual non-interest expense items are further explained in the following paragraphs.

Salaries and employee benefits increased $15.9 million, or 6.8%, related to normal annual merit increases and higher production-related commissions from strong non-interest income activity. Included in salaries and employee benefits in the first quarter of 2024 and 2023 were $6.9 million and $6.7 million, respectively, related to normal seasonal long-term compensation expense.

Net occupancy and equipment expense of $86.3 million increased $8.9 million, or 11.4%, primarily from continued technology-related investments.

Outside services increased $6.2 million, or 15.5%, with higher volume-related technology and third-party costs.

Marketing expense of $9.4 million increased $1.8 million, or 23.5%, primarily due to the timing of marketing campaigns.

FDIC insurance increased $7.8 million, or 52.4%, primarily due to special assessment expense of $5.2 million in 2024 to further replenish the FDIC's Deposit Insurance Fund associated with protecting uninsured depositors following the failed banks in early 2023 based on updated loss information provided by the FDIC, as well as loan growth and balance sheet mix changes.

We recorded $2.2 million in merger-related costs for the first six months of 2023 related to the UB Bancorp acquisition completed in December 2022.

76

Other non-interest expense was $32.3 million and $37.3 million for the first six months of 2024 and 2023, respectively. The first six months of 2024 included a $2.6 million reduction to the previously estimated loss on the indirect auto loan sale.

The following table presents non-interest expense excluding significant items impacting earnings:

TABLE 18

	Six Months Ended June 30,				$		%
(dollars in thousands)	2024		2023		Change		Change
Total non-interest expense, as reported	$	463,708	$	431,872	$	31,836	7.4	%
Significant items:
Branch consolidations	(1,194)		—		(1,194)
Merger-related	—		(2,215)		2,215
FDIC special assessment	(5,212)		—		(5,212)
Reduction in previously estimated loss on indirect auto loan sale	2,603		—		2,603
Total non-interest expense, excluding significant items (1)	$	459,905	$	429,657	$	30,248	7.0	%

(1) Non-GAAP

Income Taxes

The following table presents information regarding income tax expense and certain tax rates:

TABLE 19

	Six Months Ended June 30,
(dollars in thousands)	2024			2023
Income tax expense	$	67,527		$	72,250
Effective tax rate	21.6		%	20.0		%
Statutory federal tax rate	21.0			21.0

Income tax expense was lower in the first six months of 2024 due to lower pre-tax earnings, partially offset by lower stock compensation vesting deductions, higher disallowance of FDIC premium deductions, and higher levels of proportional amortization for certain tax credit investments resulting from the adoption of FASB ASU 2023-02 on January 1, 2024. The effective tax rate increased for the six months ended June 30, 2024 as a result of these offsetting items.

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FINANCIAL CONDITION

The following table presents our condensed Consolidated Balance Sheets:

TABLE 20

(dollars in millions)	June 30, 2024		December 31, 2023		$ Change		% Change
Assets
Cash and cash equivalents	$	1,880	$	1,576	$	304	19.3	%
Securities	7,257		7,165		92		1.3
Loans held for sale	132		488		(356)		(73.0)
Loans and leases, net	33,338		31,917		1,421		4.5
Goodwill and other intangibles	2,537		2,546		(9)		(0.4)
Other assets	2,571		2,466		105		4.3
Total Assets	$	47,715	$	46,158	$	1,557	3.4	%
Liabilities and Stockholders’ Equity
Deposits	$	34,994	$	34,711	$	283	0.8	%
Borrowings	5,632		4,477		1,155		25.8
Other liabilities	999		920		79		8.6
Total Liabilities	41,625		40,108		1,517		3.8
Stockholders’ Equity	6,090		6,050		40		0.7
Total Liabilities and Stockholders’ Equity	$	47,715	$	46,158	$	1,557	3.4	%

Lending Activity

The loan and lease portfolio consists principally of loans and leases to individuals and small- and medium-sized businesses within our primary markets in seven states and the District of Columbia. Our market coverage spans several major metropolitan areas including: Pittsburgh, Pennsylvania; Baltimore, Maryland; Cleveland, Ohio; Washington, D.C.; Charlotte, Raleigh, Durham and the Piedmont Triad (Winston-Salem, Greensboro and High Point) in North Carolina; and Charleston, South Carolina. Loans held for sale declined $356 million, or 73.0%, from December 31, 2023 due primarily to the sale of $332 million of indirect auto loans that closed in the first quarter of 2024.

Following is a summary of loans and leases:

TABLE 21

	June 30, 2024		December 31, 2023		$ Change		% Change
(in millions)
Commercial real estate	$	12,664	$	12,305	$	359	2.9	%
Commercial and industrial	7,597		7,482		115		1.5
Commercial leases	683		599		84		14.0
Other	145		110		35		31.8
Total commercial loans and leases	21,089		20,496		593		2.9
Direct installment	2,700		2,741		(41)		(1.5)
Residential mortgages	7,459		6,640		819		12.3
Indirect installment	1,188		1,149		39		3.4
Consumer lines of credit	1,321		1,297		24		1.9
Total consumer loans	12,668		11,827		841		7.1
Total loans and leases	$	33,757	$	32,323	$	1,434	4.4	%

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The growth in commercial loans and leases was across our footprint. For consumer lending, average residential mortgages increased $1.3 billion, primarily driven by seasonal growth in mortgage originations in the second quarter of 2024. Our commercial real estate portfolio included $8.9 billion of non-owner-occupied loans of which 19.6% represented office space. Our top 25 non-owner-occupied commercial real estate loans averaged approximately $24 million per exposure although the office space was primarily made up of mid-sized offices located outside of metropolitan business districts with 41% of the office portfolio averaging less than $5 million per exposure.

Non-Performing Assets

Following is a summary of non-performing assets:

TABLE 22

(in millions)	June 30, 2024		December 31, 2023		$ Change		% Change
Commercial real estate	$	33	$	42	$	(9)	(21.4)	%
Commercial and industrial	45		39		6		15.4
Commercial leases	3		3		—		—
Other	2		—		2		—
Total commercial loans and leases	83		84		(1)		(1.2)
Direct installment	5		5		—		—
Residential mortgages	12		10		2		20.0
Indirect installment	2		2		—		—
Consumer lines of credit	6		6		—		—
Total consumer loans	25		23		2		8.7
Total non-performing loans and leases	108		107		1		0.9
Other real estate owned	3		3		—		—
Total non-performing assets	$	111	$	110	$	1	0.9	%

Non-performing assets increased slightly by $0.6 million, from $110.0 million at December 31, 2023 to $110.5 million at June 30, 2024, and remain at or near historically low levels.

Allowance for Credit Losses on Loans and Leases

The CECL model takes into consideration the expected credit losses over the life of the loan at the time the loan is originated. The model used to calculate the ACL is dependent on the portfolio composition and credit quality, as well as historical experience, current conditions and forecasts of economic conditions and interest rates. Specifically, the following considerations are incorporated into the ACL calculation:

•a third-party macroeconomic forecast scenario;

•a 24-month R&S forecast period for macroeconomic factors with a reversion to the historical mean on a straight-line basis over a 12-month period; and

•the historical through-the-cycle default mean calculated using an expanded period to include a prior recessionary period.

At June 30, 2024 and December 31, 2023, we utilized a third-party consensus macroeconomic forecast reflecting the current and projected macroeconomic environment. For our ACL calculation at June 30, 2024, the macroeconomic variables that we utilized included, but were not limited to: (i) the purchase only Housing Price Index, which increases 7.2% over our R&S forecast period, (ii) a Commercial Real Estate Price Index, which increases 5.9% over our R&S forecast period, (iii) S&P Volatility, which increases 12.3% in 2024 and decreases 0.8% in 2025 and (iv) personal and business bankruptcies, which increase steadily over the R&S forecast period but average below the historical through-the-cycle period. Macroeconomic variables that we utilized for our ACL calculation as of December 31, 2023 included, but were not limited to: (i) the purchase only Housing Price Index, which increases 5.3% over our R&S forecast period, (ii) a Commercial Real Estate Price Index, which increases 0.1% over our R&S forecast period, (iii) S&P Volatility, which decreases 4.0% in 2024 and 2.9% in 2025 and

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(iv) bankruptcies, which increase steadily over the R&S forecast period but average below the historical through the cycle period.

Following is a summary of certain data related to the ACL and loans and leases:

TABLE 23

	Net Loan Charge-Offs				Net Loan Charge-Offs to Average Loans				ACL at
	Six Months Ended June 30,				Six Months Ended June 30,				June 30,
	2024		2023		2024		2023		2024
(dollars in millions)
Commercial real estate	$	9.1	$	6.0	0.06	%	0.04	%	$	157.7
Commercial and industrial	6.1		9.7		0.04		0.07		93.5
Commercial leases	0.1		—		—		—		22.9
Other commercial	1.0		1.9		0.01		0.01		4.0
Direct installment	0.2		0.1		—		—		30.9
Residential mortgages	0.1		0.4		—		—		88.2
Indirect installment	3.9		3.7		0.02		0.02		13.1
Consumer lines of credit	0.1		0.1		—		—		8.5
Total net loan charge-offs on loans and leases, net loan charge-offs (annualized)/average loans	$	20.6	$	21.9	0.13	%	0.14	%	$	418.8
Allowance for credit losses/total loans and leases					1.24	%	1.32	%
Allowance for credit losses/non-performing loans					388.11	%	289.45	%

The ACL on loans and leases of $418.8 million at June 30, 2024 increased $13.2 million, or 3.3%, from December 31, 2023. Our ending ACL coverage ratio was stable at 1.24% at June 30, 2024 compared to 1.25% at December 31, 2023. Total provision for credit losses for the six months ended June 30, 2024 was $34.1 million, compared to $32.6 million for the same period in 2023. Net charge-offs were $20.6 million for the six months ended June 30, 2024, compared to $21.9 million for the first six months of 2023. The ACL as a percentage of non-performing loans for the total portfolio increased slightly to 388% as of June 30, 2024, compared to 378% as of December 31, 2023.

Deposits

Our primary source of funds is deposits. Our diversified and granular deposit base are provided by business, consumer and municipal customers who we serve within our footprint.

Following is a summary of deposits:

TABLE 24

(in millions)	June 30, 2024		December 31, 2023		$ Change		% Change
Non-interest-bearing demand	$	10,062	$	10,222	$	(160)	(1.6)	%
Interest-bearing demand	14,697		14,809		(112)		(0.8)
Savings	3,348		3,465		(117)		(3.4)
Certificates and other time deposits	6,887		6,215		672		10.8
Total deposits	$	34,994	$	34,711	$	283	0.8	%

Total deposits increased $283.1 million, or 0.8%, from December 31, 2023, however we continued to experience balance migration into higher-yielding deposit products. We ended the quarter with approximately 78% of all deposits insured by the FDIC or collateralized.

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Capital Resources and Regulatory Matters

Our capital position depends in part on the access to, and cost of, funding for new business initiatives, the ability to engage in expanded business activities, the ability to pay dividends and the level and nature of regulatory oversight.

The assessment of capital adequacy depends on a number of factors such as expected organic growth in the Consolidated Balance Sheet, asset quality, liquidity, earnings performance and sustainability, changing competitive conditions, regulatory changes or actions, and economic forces. We seek to maintain a strong capital base to support our growth and expansion activities, to provide stability to current operations and to promote public confidence.

Pursuant to and in compliance with applicable SEC laws, rules and regulations, we may, from time to time, issue and sell in one or more offerings any combination of common stock, preferred stock, debt securities, depositary shares, warrants, stock purchase contracts or units.

Since inception of our $300 million stock purchase program, we repurchased 14.1 million shares at a weighted average share price of $11.39 for $164.3 million, with $135.7 million remaining for repurchase. Any repurchases will be made from time to time on the open market at prevailing market prices or in privately negotiated transactions. The purchases will be funded from available working capital. There is no guarantee as to the exact number of shares that will be repurchased and we may discontinue purchases at any time. The Inflation Reduction Act of 2022 includes a 1% excise tax on stock repurchases beginning January 1, 2023.

On February 15, 2024, we redeemed all our Series E, 7.25% Fixed Rate / Floating Rate Non-Cumulative Perpetual Preferred Stock in the amount of $111 million. The preferred stock is no longer outstanding and dividends will no longer accrue on such securities.

Capital management is a continuous process, with capital plans and stress testing for FNB and FNBPA updated at least annually. These capital plans include assessing the adequacy of expected capital levels assuming various scenarios by projecting capital needs for a forecast period of 2-3 years beyond the current year. From time to time, we issue shares initially acquired by us as treasury stock under our various benefit plans. We may issue additional preferred or common stock to maintain our well-capitalized status.

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 CET1 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 business and corporate strategies. 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.

At June 30, 2024, the capital levels of both FNB and FNBPA exceeded all regulatory capital requirements and their regulatory capital ratios were above the minimum levels required to be considered “well-capitalized” for regulatory purposes.

In December 2018, the FRB and other U.S. banking agencies approved a rule to address the impact of CECL on regulatory capital by allowing bank holding companies (BHCs) and banks, including FNB, the option to phase in the day-one impact of CECL over a three-year period. In March 2020, the FRB and other U.S. banking agencies issued a final rule that became effective on March 31, 2020, and provides BHCs and banks with an alternative option to temporarily delay the impact of CECL, relative to the incurred loss methodology for the ACL, on regulatory capital. We have elected this alternative option instead of the one described in the December 2018 rule. As a result, under the final rule, we delayed recognizing the estimated impact of CECL on regulatory capital until after a two-year deferral period, which for us extended through December 31, 2021. Beginning on January 1, 2022, we were required to phase in 25% of the previously deferred capital impact of CECL, with an additional 25% to be phased in at the beginning of each subsequent year until fully phased in by the first quarter of 2025. Under the final rule, the estimated impact of CECL on regulatory capital that we will defer and later phase in is calculated as the entire day-one impact at adoption plus 25% of the subsequent change in the ACL during the two-year deferral period. As of June 30, 2024, the total deferred impact on CET1 capital related to our adoption of CECL was approximately $17.2 million, or 5 basis points, which will be eliminated in 2025.

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In this unprecedented economic and uncertain environment, we frequently run stress tests for a variety of economic situations, including severely adverse scenarios that have economic conditions like the current conditions. Under these scenarios, the results of these stress tests indicate that our regulatory capital ratios would remain above the regulatory requirements and we would be able to maintain appropriate liquidity levels, demonstrating our expected ability to continue to support our customers and communities under stressful financial conditions.

Following are the capital amounts and related ratios for FNB and FNBPA:

TABLE 25

	Actual				Well-Capitalized Requirements (1)				Minimum Capital Requirements plus Capital Conservation Buffer
(dollars in millions)	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of June 30, 2024
F.N.B. Corporation
Total capital	$	4,508	12.01	%	$	3,754	10.00	%	$	3,941	10.50	%
Tier 1 capital	3,825		10.19		2,252		6.00		3,191		8.50
Common equity tier 1	3,825		10.19		n/a		n/a		2,628		7.00
Leverage	3,825		8.63		n/a		n/a		1,773		4.00
Risk-weighted assets	37,538
FNBPA
Total capital	$	4,692	12.58	%	$	3,731	10.00	%	$	3,917	10.50	%
Tier 1 capital	3,866		10.36		2,984		8.00		3,171		8.50
Common equity tier 1	3,786		10.15		2,425		6.50		2,611		7.00
Leverage	3,866		8.77		2,205		5.00		1,764		4.00
Risk-weighted assets	37,306
As of December 31, 2023
F.N.B. Corporation
Total capital	$	4,456	12.16	%	$	3,664	10.00	%	$	3,847	10.50	%
Tier 1 capital	3,786		10.33		2,198		6.00		3,114		8.50
Common equity tier 1	3,680		10.04		n/a		n/a		2,565		7.00
Leverage	3,786		8.72		n/a		n/a		1,736		4.00
Risk-weighted assets	36,641
FNBPA
Total capital	$	4,559	12.50	%	$	3,647	10.00	%	$	3,829	10.50	%
Tier 1 capital	3,769		10.34		2,917		8.00		3,100		8.50
Common equity tier 1	3,689		10.12		2,370		6.50		2,553		7.00
Leverage	3,769		8.71		2,164		5.00		1,731		4.00
Risk-weighted assets	36,466

(1) Reflects the well-capitalized standard under Regulation Y for F.N.B. Corporation and the prompt corrective action framework for FNBPA.

In accordance with Basel III Capital Rules, the minimum capital requirements plus capital conservation buffer, which are presented for each period above, represent the minimum requirements needed to avoid limitations on distributions of dividends and certain discretionary bonus payments.

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Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act)

The Dodd-Frank Act broadly affects the financial services industry by establishing a framework for systemic risk oversight, creating a resolution authority for institutions determined to be systemically important, mandating higher capital and liquidity requirements, requiring banks to pay increased fees to regulatory agencies and containing numerous other provisions aimed at strengthening the sound operation of the financial services sector that significantly change the system of regulatory oversight as described in more detail under Part I, Item 1, “Business - Government Supervision and Regulation” included in our 2023 Annual Report on Form 10-K as filed with the SEC on February 26, 2024.

LIQUIDITY

Our primary liquidity management goal is to satisfy the cash flow requirements of customers and the operating cash needs of FNB with cost-effective funding. Our Board of Directors has established an Asset/Liability Management Policy to guide management in achieving and maintaining earnings performance consistent with long-term goals, while maintaining acceptable levels of interest rate risk, a “well-capitalized” Balance Sheet and appropriate levels of liquidity. Our Board of Directors has also established Liquidity and Contingency Funding Policies to guide management in addressing the ability to identify, measure, monitor and control both normal and stressed liquidity conditions. These policies designate our ALCO as the body responsible for meeting these objectives. The ALCO, which is comprised of members of executive management, reviews liquidity on a continuous basis and approves significant changes in strategies that affect Balance Sheet or cash flow positions. Liquidity is centrally managed daily by our Treasury Department.

Parent Company Liquidity

The parent company’s funding requirements primarily consist of shareholder dividends, debt service, income taxes, operating expenses, funding of non-bank subsidiaries, and stock repurchases. The parent company’s funding sources primarily consist of dividends and interest received from the Bank and other direct subsidiaries, net taxes collected from subsidiaries included in the consolidated tax returns, fees for services provided to subsidiaries and the issuance of debt instruments. The dividends received from the Bank and other direct subsidiaries may be impacted by the parent’s or its subsidiaries’ capital and liquidity needs, statutory laws and regulations, corporate policies, contractual restrictions, profitability and other factors. In addition, through one of our subsidiaries, we regularly issue subordinated notes, which are guaranteed by FNB.

Management utilizes various strategies to ensure sufficient cash on hand is available to meet the parent company's funding needs. During the third quarter of 2022, we completed a Senior Debt offering for $347.7 million in net proceeds. A portion of these proceeds was used to retire debt that matured in February 2023 (for additional information, see Note 9, "Borrowings" in the Notes to the Consolidated Financial Statements in this Report). We have historically been opportunistic when accessing the capital markets, and we will continue with that strategy. The parent company's cash position at June 30, 2024 was $282.9 million, down $92.5 million from year-end, primarily due to the redemption of all $111 million of our Series E, 7.25% Fixed Rate / Floating Rate Non-Cumulative Perpetual Preferred Stock in February 2024. The Board of Directors declared the redemption of the preferred stock given its higher relative cost of capital and our strong capital position with the regulatory CET1 ratio and Total Capital ratios at 10.2% and 12.0%, respectively, at June 30, 2024 with the Total Capital ratio reflecting the preferred stock redemption.

Two metrics that are used to gauge the adequacy of the parent company’s cash position are the Liquidity Coverage Ratio (LCR) and Months of Cash on Hand (MCH). The LCR is defined as the sum of cash on hand plus projected cash inflows over the next 12 months divided by projected cash outflows over the next 12 months. The MCH is defined as the number of months of corporate expenses and dividends that can be covered by the existing cash on hand. The LCR and MCH ratios and Parent company cash on hand are presented in the following table:

TABLE 26

	June 30, 2024		December 31, 2023		Internal Limit
Liquidity coverage ratio	2.7 times		2.0 times		> 1 time
Months of cash on hand	15.0 months		13.0 months		> 12 months
Parent company cash on hand (millions)	$	282.9	$	375.4	n/a

As previously mentioned, our parent company cash on hand declined from December 31, 2023 due to the preferred stock redemption, however our liquidity coverage ratio and months of cash on hand metrics improved primarily due to the lower

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projected 12-month net cash outflow related to the preferred stock redemption. Management has concluded that our cash levels remain appropriate given the current market environment.

Bank Liquidity

Bank-level liquidity sources from assets include payments from loans and investments, as well as the ability to securitize, pledge or sell loans, investment securities and other assets. Liquidity sources from liabilities are generated primarily through the banking offices of FNBPA in the form of deposits and customer repurchase agreements. The Bank also has access to reliable and cost-effective wholesale sources of liquidity. Short- and long-term funds are available for use to help fund normal business operations, and unused credit availability can be utilized to serve as contingency funding if faced with a liquidity crisis.

Over time, our liquidity position has been positively impacted by FNBPA's ability to generate growth in relationship-based accounts. Organic growth in low-cost transaction deposits has been complemented by management’s continued strategy of deposit gathering efforts focused on attracting new customer relationships across our geographic footprint and deepening relationships with existing customers, in part through internal lead generation efforts leveraging data analytics capabilities.

At June 30, 2024, approximately 78% of our deposits were insured by the FDIC or collateralized, stable with December 31, 2023. Non-interest-bearing demand deposits decreased $160.4 million, compared to December 31, 2023. Interest-bearing demand deposits decreased $111.6 million and savings account balances decreased $117.0 million, while time deposits increased $672.0 million, compared to December 31, 2023, as customers continue to migrate deposits into higher-yielding deposit products. The mix of non-interest-bearing deposits to total deposits remained consistent with the prior quarter at 29%. Our cash balances held at the FRB were $1.4 billion at June 30, 2024 and $1.1 billion at December 31, 2023. Management will continue to evaluate appropriate levels of liquidity based on expected loan and deposit growth and other balance sheet activity.

The following table presents certain information relating to FNBPA’s credit availability and salable unpledged securities:

TABLE 27

(dollars in millions)	June 30, 2024			December 31, 2023
Unused wholesale credit availability	$	14,914		$	15,899
Unused wholesale credit availability as a % of FNBPA assets	31.4		%	34.6		%
Salable unpledged government and agency securities	$	1,126		$	657
Salable unpledged government and agency securities as a % of FNBPA assets	2.4		%	1.4		%
Cash and salable unpledged government and agency securities as a % of FNBPA assets	5.4		%	3.8		%

Our bank-level liquidity position was strong throughout the first half of 2024. Our contingency funding policy and periodic liquidity stress testing of multiple stress scenarios is particularly valuable as we successfully manage our liquidity. We continue to have ample unused borrowing capacity that could cover 1.9 times the uninsured deposit and non-collateralized deposit balances as of June 30, 2024. A portion of this capacity includes the FRB's Discount Window. We have no borrowings under this facility. Additional sources of unused wholesale credit availability for FNBPA include the ability to borrow from the FHLB, correspondent bank lines, and access to other channels. In addition to credit availability, FNBPA also possesses salable unpledged government and agency securities that could be utilized to meet funding needs and has excess cash to meet its pledging requirements. At June 30, 2024, FNBPA has $2.5 billion of cash and salable unpledged government and agency securities representing 5.4% of total assets. This compares to a policy minimum of 3.0%.

Another metric for measuring liquidity risk is the liquidity gap analysis. The following liquidity gap analysis as of June 30, 2024 compares the difference between our cash flows from existing earning assets and interest-bearing liabilities over future time intervals. Management calculates this ratio at least quarterly and it is reviewed regularly by ALCO. Management monitors the size of the liquidity gaps so that sources and uses of funds are reasonably matched in the normal course of business and in relation to implied forward rate expectations. A reasonably matched position lays a better foundation for dealing with additional funding needs during a potential liquidity crisis. A positive gap position means that more assets are expected to mature over the next 12 months than liabilities. The allocation of non-maturity deposits and customer repurchase agreements to the twelve-month categories is based on the estimated lives of each product.

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TABLE 28

(dollars in millions)	Within 1 Month			2-3 Months			4-6 Months			7-12 Months			Total 1 Year
Assets
Loans	$	1,031		$	1,705		$	2,236		$	3,534		$	8,506
Investments	1,521			177			253			623			2,574
	2,552			1,882			2,489			4,157			11,080
Liabilities
Non-maturity deposits	292			585			877			1,754			3,508
Time deposits	978			1,367			1,996			1,972			6,313
Borrowings	3,044			112			264			645			4,065
	4,314			2,064			3,137			4,371			13,886
Period Gap (Assets - Liabilities)	$	(1,762)		$	(182)		$	(648)		$	(214)		$	(2,806)
Cumulative Gap	$	(1,762)		$	(1,944)		$	(2,592)		$	(2,806)
Cumulative Gap to Total Assets	(3.7)		%	(4.1)		%	(5.4)		%	(5.9)		%

The twelve-month cumulative gap to total assets ratio was (5.9)% as of June 30, 2024, compared to (2.6)% as of December 31, 2023. The change in the twelve-month cumulative gap to total assets was primarily related to the active management of deposit pricing across the deposit product maturity tenors which reduced our asset sensitivity. In addition, the ALCO regularly monitors various liquidity ratios, stress scenarios of our liquidity position and assumptions considering market disruptions, lending demand, deposit behavior, and funding availability. The stress scenarios forecast that adequate funding will be available even under severe conditions. Management believes we have sufficient liquidity available to meet our normal operating and contingency funding cash needs.

MARKET RISK

Market risk refers to potential losses arising predominately from changes in interest rates, foreign exchange rates, equity prices and commodity prices. Interest rate risk is comprised of repricing risk, basis risk, yield curve risk and options risk. We are primarily exposed to interest rate risk inherent in our lending and deposit-taking activities as a financial intermediary. To succeed in this capacity, we offer an extensive variety of financial products to meet the diverse needs of our customers. These products sometimes contribute to interest rate risk for us when product groups do not complement one another. For example, depositors may want short-term deposits, while borrowers may desire long-term loans.

Changes in market interest rates may result in changes in the fair value of our financial instruments, cash flows and net interest income. Subject to its ongoing oversight, the Board of Directors has given ALCO the responsibility for market risk management, which involves devising policy guidelines, risk measures and limits, and managing the amount of interest rate risk and its effect on net interest income and capital. We use derivative financial instruments for interest rate risk management purposes and not for trading or speculative purposes.

We use an asset/liability model to measure our interest rate risk. Interest rate risk measures we utilize include earnings simulation, EVE and gap analysis. Gap analysis and EVE are static measures that do not incorporate assumptions regarding future business. Gap analysis, while a helpful diagnostic tool, displays cash flows for only a single rate environment. EVE’s long-term horizon helps identify changes in optionality and longer-term positions. However, EVE’s liquidation perspective does not translate into the earnings-based measures that are the focus of managing and valuing a going concern. Net interest income simulations explicitly measure the exposure to earnings from changes in market rates of interest. In these simulations, our current financial position is combined with assumptions regarding future business activities to calculate net interest income under various hypothetical rate scenarios. The ALCO regularly reviews earnings simulations over multiple years under various interest rate scenarios. Reviewing these various measures provides us with a comprehensive view of our interest rate risk profile, which provides the basis for balance sheet management strategies.

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The following repricing gap analysis as of June 30, 2024 compares the difference between the amount of interest-earning assets and interest-bearing liabilities subject to repricing over a period of time. The allocation of non-maturity deposits and customer repurchase agreements to the one-month maturity category below is based on the estimated sensitivity of each product to changes in market rates. For example, if a product’s rate is estimated to increase by 50% as much as the market rates, then 50% of the account balance was placed in this category.

Management utilizes the repricing gap analysis as a diagnostic tool in managing net interest income and EVE risk measures.

TABLE 29

(dollars in millions)	Within 1 Month			2-3 Months			4-6 Months			7-12 Months			Total 1 Year
Assets
Loans	$	15,695		$	1,094		$	947		$	1,768		$	19,504
Investments	1,530			181			315			618			2,644
	17,225			1,275			1,262			2,386			22,148
Liabilities
Non-maturity deposits	8,148			—			—			—			8,148
Time deposits	1,076			1,365			1,993			1,967			6,401
Borrowings	3,130			426			4			950			4,510
	12,354			1,791			1,997			2,917			19,059
Off-balance sheet	(1,200)			100			(100)			500			(700)
Period Gap (Assets – Liabilities + Off-balance sheet)	$	3,671		$	(416)		$	(835)		$	(31)		$	2,389
Cumulative Gap	$	3,671		$	3,255		$	2,420		$	2,389
Cumulative Gap to Earning Assets	8.6		%	7.6		%	5.7		%	5.6		%

The twelve-month cumulative repricing gap to total assets was 5.6% and 10.3% as of June 30, 2024 and December 31, 2023, respectively. The positive cumulative gap positions indicate that we have a greater amount of repricing earning assets than repricing interest-bearing liabilities over the subsequent twelve months. The change in the cumulative repricing gap at June 30, 2024, compared to December 31, 2023, is primarily related to customers moving into shorter-term time deposits and the increase in short-term and variable-rate borrowings.

In addition to the repricing gap analysis above, we model rate scenarios which move all rates gradually over twelve months (Rate Ramps). We also model rate scenarios which move all rates in an immediate and parallel fashion (Rate Shocks) and model scenarios that gradually change the shape of the yield curve. Using a static Balance Sheet structure and utilizing net interest income simulations, the following table presents an analysis of the potential sensitivity of our net interest income to changes in interest rates using Rate Ramps and the sensitivity of EVE using Rate Shocks. The variance percentages represent the change between the net interest income and EVE calculated under the particular rate scenario compared to the net interest income and EVE that was calculated assuming market rates as of June 30, 2024. The calculated results do not reflect management's potential actions.

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TABLE 30

	June 30, 2024		December 31, 2023		ALCO Limits
Net interest income change over 12 months (Rate Ramps):
+ 200 basis points	2.9	%	3.9	%	(10.0)	%
+ 100 basis points	1.5		2.0		(10.0)
- 100 basis points	(1.5)		(2.0)		(10.0)
- 200 basis points	(3.1)		(4.1)		(10.0)
Economic value of equity (Rate Shocks):
+ 300 basis points	4.8		4.6		(25.0)
+ 200 basis points	3.9		3.2		(15.0)
+ 100 basis points	2.4		1.6		(10.0)
- 100 basis points	(3.5)		(2.5)		(10.0)
- 200 basis points	(8.2)		(8.0)		(15.0)

There are multiple factors that influence our interest rate risk position and impact net interest income. These include external factors such as the shape of the yield curve, the competitive landscape and expectations regarding future interest rates, as well as internal factors regarding product offerings, product mix and pricing of loans and deposits. Our current interest rate risk position is primarily driven by our loan portfolio. Total variable and adjustable-rate loans were 62.8% and 62.2% of total net loans and leases at June 30, 2024 and December 31, 2023, respectively. Forty-eight percent of our net loans and leases reprice within the next three months and are indexed to short-term SOFR, Prime and other indices. Furthermore, we regularly sell long-term fixed-rate residential mortgages in the secondary market and have been successful in the origination of consumer and commercial loans with short-term repricing characteristics.

Management continues to be proactive in managing our interest rate risk (IRR) position with the intention to manage to a more neutral position given the current market expectations for future interest rates. During the first half of 2024, management adjusted the IRR position by slightly extending the duration of the investment securities portfolio, originating adjustable rate mortgage loans with longer-duration fixed periods, strategically meeting our customers' preferences for higher yielding deposit products, in particular, with shorter-term time deposits, and utilizing borrowings of variable rates and varying maturities. As a result, the net interest income change over 12 months shown above in both the up and down rate ramp scenarios is closer to neutral compared to December 31, 2023.

We also utilize derivatives to manage the IRR position. These positions are used to protect the fair value of assets and liabilities by converting the contractual interest rate on a specified amount (i.e., notional amounts) to another interest rate index or to hedge the variability in cash flows attributable to the contractually specified interest rate by converting the variable rate index into a fixed rate. The volume, maturity and mix of derivative positions change periodically as we adjust our broader interest rate risk management objectives, and the balance sheet positions to be hedged. We currently have $1.2 billion (notional) of receive-fixed interest rate swaps designated as cash flow hedges for variable rate commercial loans with $1.0 billion (notional) of these swaps maturing at various dates throughout 2025 and $0.2 billion (notional) maturing in May 2026. Additionally, we have a $0.2 million (notional) interest rate collar on variable rate commercial loans with strike rates between 2.8525% and 5.50% that matures in April 2026. We also designated $0.2 billion (notional) of interest rate swaps as hedges of variable rate short-term debt with $0.1 billion and $0.1 billion maturing in July and November 2024, respectively.

Derivative financial instruments are also offered to enable commercial customers to meet their financing and investing objectives and for their risk management purposes. We typically enter into offsetting third-party contracts with reputable counterparties with substantially matching terms to economically hedge the exposure related to these derivatives. At June 30, 2024, the commercial customer-related interest rate swaps totaled $5.8 billion (notional), up from $5.7 billion (notional) at December 31, 2023. For additional information regarding interest rate swaps, see Note 10, "Derivative Instruments and Hedging Activities" in the Notes to Consolidated Financial Statements in this Report.

In addition to the rate ramp scenarios for net interest income changes shown above, we also model immediate interest rate shock scenarios. These results use historical long-term deposit rate beta assumptions that are regularly analyzed and adjusted as necessary for both rising and falling rate scenarios. Assuming a static Balance Sheet, a +100 basis point Rate Shock increases net interest income (12 months) by 2.5% at June 30, 2024 and 3.4% at December 31, 2023. For a +200 basis point Rate Shock, net interest income (12 months) increases by 4.9% at June 30, 2024 and 6.7% at December 31, 2023. The corresponding

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metrics for a minus 100 basis point Rate Shock are (2.7)% and (3.6)% at June 30, 2024 and December 31, 2023, respectively. The drivers of the change in net interest income in the rate shock scenarios include the mix shift of deposit products into shorter-term time deposits, the pace of deposit repricing and assumed betas and loan prepayments. These results reflect a more neutral net interest income change over 12 months in both the up and down rate shock scenarios compared to December 31, 2023, consistent with the rate ramp results.

We recognize that all asset/liability models have some inherent shortcomings. Asset/liability models require certain assumptions to be made, such as prepayment rates on interest-earning assets and repricing impact on non-maturity deposits, which may differ from actual experience. These business assumptions are based upon our experience, business plans, economic and market trends and available industry data. While management believes that its methodology for developing such assumptions is reasonable, there can be no assurance that modeled results will be achieved. Furthermore, the metrics are based upon the Balance Sheet structure as of the valuation date and do not reflect planned growth or management actions that could be taken.

CREDIT RATINGS

Our credit ratings affect the cost and availability of short- and long-term funding and collateral requirements for certain derivative instruments.

Credit ratings are subject to ongoing review by rating agencies, which consider a number of factors, including our financial strength, performance, prospects and operations as well as factors not under our control. Other factors that influence our credit ratings include changes to the rating agencies’ methodologies for our industry or certain security types; the rating agencies’ assessment of the general operating environment for financial services companies; our relative positions in the markets in which we compete; our various risk exposures and risk management policies and activities; pending litigation and other contingencies; our reputation; our liquidity position, diversity of funding sources and funding costs; the current and expected level and volatility of our earnings; our capital position and capital management practices; our corporate governance; current or future regulatory and legislative initiatives; and the agencies’ views on whether the U.S. government would provide meaningful support to us or our subsidiaries in a crisis.

Credit rating downgrades or negative watch warnings could negatively impact our reputation with lenders, investors and other third parties, which could also impair our ability to compete in certain markets or engage in certain transactions. In particular, holders of deposits which exceed FDIC insurance limits may perceive such a downgrade or warning negatively and withdraw all or a portion of such deposits.

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The following table presents the credit ratings for FNB and FNBPA as of June 30, 2024:

TABLE 31

	Moody's	Standard & Poor's	Kroll
F.N.B. Corporation
Issuer credit rating	Baa2	BBB-	A-
Senior debt	Baa2	BBB-	A-
Subordinated debt	Baa2	n/a	BBB+
First National Bank of Pennsylvania
Baseline credit assessment	Baa1	n/a	n/a
Issuer credit rating	Baa1	BBB	A
Senior debt	n/a	n/a	A
Subordinated debt	n/a	n/a	A-
Bank deposits	A2/P-1	n/a	A
Short-term borrowings	n/a	A-2	K1
Outlook for F.N.B. Corporation and First National Bank of Pennsylvania	Negative	Stable	Stable
n/a - not applicable

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RISK MANAGEMENT

As a financial institution, we take on a certain amount of risk in every business decision, transaction and activity. Accordingly, we have designed an Enterprise Risk Management Framework and risk management practices to help manage enterprise risks. Our Board of Directors and senior management have identified seven major categories of risk: credit risk, market risk, liquidity risk, operational risk, legal and compliance risk, reputation risk and strategic risk. In its oversight role of our risk management function, the Board of Directors focuses on the strategies, analyses and conclusions of management relating to identifying, understanding and managing risks to optimize total shareholder value, while balancing prudent business and safety and soundness considerations.

We support our risk management processes and business oversight through the three lines of defense and a governance structure at the Board of Directors and management levels.

The lines of defense model consists of:

•First Line of Defense - consists of our businesses and enterprise support areas that engage in risk-taking activities and are principally responsible for owning and managing the day-to-day risk-taking activities in accordance with the risk frameworks.

•Second Line of Defense - consists of Risk Management and Compliance Departments responsible for developing risk frameworks, overseeing risk-taking activities and identifying, assessing, monitoring and reporting on enterprise aggregate risks.

•Third Line of Defense - is Internal Audit and provides independent assurance on the effectiveness of controls and risk management practices across our first and second lines of defense.

Our Board of Directors is responsible for the oversight of management on behalf of our stockholders. The Board of Directors has assistance in carrying out its duties and may delegate authority through the following standing Board Committees:

•Audit Committee - provides oversight of our internal and external audit processes. In addition, monitors the integrity of the consolidated financial statements, internal controls over financial reporting, qualifications and independence of our audit function.

•Nominating and Corporate Governance Committee - responsible for selecting and recommending nominees for election to the FNB and FNBPA Boards of Directors.

•Compensation Committee - reviews performance and compensation of senior management and reviews and implements compensation and benefit matters having corporate-wide significance.

•Executive Committee - joint session of the FNB and FNBPA Board of Directors to cover special matters, as deemed necessary, in between regularly scheduled board meetings.

•Risk Committee - provides oversight of our risk management and assessment processes, including the review and approval of risk management policies, procedures and practices, to identify, assess, monitor and report material risks.

•Credit Fair Lending and CRA Committee - responsible for providing oversight of credit and lending strategies and objectives.

The Risk Committee serves as the primary point of contact between our Board of Directors and the Risk Management Council (RMC), which is the senior management level committee responsible for identifying, assessing, monitoring and reporting on enterprise-wide risks. The Risk Committee and RMC are supported by other risk management committees, including Credit Risk Committees, Operational Risk Committee, Compliance Risk Committee and ALCO.

Risk appetite is an integral element of our enterprise risk management framework and of our business and capital planning processes through our Board Risk Committee and Risk Management Council. We use our risk appetite processes to promote appropriate alignment of risk, capital and performance tactics, while also considering risk capacity and appetite constraints from both financial and non-financial risks. The Board of Directors adopted an enterprise risk appetite that defines acceptable risk limits under which we seek to operate in pursuit of optimizing returns. As such, we monitor a series of Key Risk Indicators for various business lines and operation units to measure performance alignment with our stated risk appetite. Our top-down risk

90

appetite process serves as a limit for undue risk-taking for bottom-up planning from our various business functions. Our Board Risk Committee, in collaboration with our Risk Management Council, approves our risk appetite on an annual basis, or more frequently, as needed to reflect changes in the risk, regulatory, economic and strategic plan environments, with the goal of ensuring that our risk appetite remains consistent with our strategic plans and business operations, regulatory environment and our shareholders' expectations.

Our Enterprise Risk Management Framework provides the practices to identify, assess, control and monitor and report on risk across the organization. Reports relating to our risk appetite and strategic plans, and our ongoing monitoring thereof, and our aggregate risk profile, are regularly presented to our various management level risk oversight and planning committees and periodically reported up through our Board Risk Committee.

The Board of Directors believes that our enterprise-wide risk management process is effective and enables the Board of Directors to:

•assess the quality of the information they receive;

•understand the businesses, investments and financial, accounting, legal, regulatory and strategic considerations, and the risks that FNB faces;

•oversee and assess how senior management evaluates risk; and

•assess appropriately the quality of our enterprise-wide risk management processes.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND KEY PERFORMANCE INDICATORS TO GAAP

Reconciliations of non-GAAP operating measures and key performance indicators discussed in this Report to the most directly comparable GAAP financial measures are included in the following tables.

TABLE 32

Operating net income available to common stockholders

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2024		2023		2024		2023
Net income available to common stockholders	$	123,037	$	140,382	$	239,363	$	284,877
Preferred dividend at redemption	—		—		3,995		—
Merger-related expense	—		163		—		2,215
Tax benefit of merger-related expense	—		(34)		—		(465)
Branch consolidation costs	—		—		1,194		—
Tax benefit of branch consolidation costs	—		—		(251)		—
FDIC special assessment	804		—		5,212		—
Tax benefit of FDIC special assessment	(169)		—		(1,095)		—
Reduction of previous estimated loss on indirect auto loan sale	—		—		(2,603)		—
Tax expense of reduction of previous estimated loss on indirect auto loan sale	—		—		547		—
Operating net income available to common stockholders (non-GAAP)	$	123,672	$	140,511	$	246,362	$	286,627

The table above shows how operating net income available to common stockholders (non-GAAP) is derived from amounts reported in our financial statements. We believe certain charges, such as merger expenses, preferred deemed dividend at redemption, FDIC special assessment, loss on indirect auto loan sale and branch consolidation costs are not organic costs to run our operations and facilities. These costs are specific to each individual transaction, and may vary significantly based on the size and complexity of the transaction.

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TABLE 33

Operating earnings per diluted common share

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net income per diluted common share	$	0.34	$	0.39	$	0.66	$	0.78
Preferred dividend at redemption	—		—		0.01		—
Merger-related expense	—		—		—		0.01
Tax benefit of merger-related expense	—		—		—		—
Branch consolidation costs	—		—		—		—
Tax benefit of branch consolidation costs	—		—		—		—
FDIC special assessment	—		—		0.01		—
Tax benefit of FDIC special assessment	—		—		—		—
Reduction of previous estimated loss on indirect auto loan sale	—		—		(0.01)		—
Tax expense of reduction of previous estimated loss on indirect auto loan sale	—		—		—		—
Operating earnings per diluted common share (non-GAAP)	$	0.34	$	0.39	$	0.68	$	0.79

TABLE 34

Return on average tangible common equity

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2024			2023			2024			2023
Net income available to common stockholders (annualized)	$	494,851		$	563,073		$	481,357		$	574,476
Amortization of intangibles, net of tax (annualized)	13,913			15,984			14,014			16,190
Tangible net income available to common stockholders (annualized) (non-GAAP)	$	508,764		$	579,057		$	495,371		$	590,666
Average total stockholders’ equity	$	6,038,239		$	5,833,186		$	6,038,906		$	5,782,694
Less: Average preferred stockholders' equity	—			(106,882)			(26,427)			(106,882)
Less: Average intangible assets (1)	(2,539,710)			(2,558,631)			(2,541,871)			(2,561,087)
Average tangible common equity (non-GAAP)	$	3,498,529		$	3,167,673		$	3,470,608		$	3,114,725
Return on average tangible common equity (non-GAAP)	14.54		%	18.28		%	14.27		%	18.96		%

(1) Excludes loan servicing rights.

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TABLE 35

Operating return on average tangible common equity

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2024			2023			2024			2023
Operating net income available to common stockholders (annualized)	$	497,406		$	563,588		$	495,431		$	578,005
Amortization of intangibles, net of tax (annualized)	13,913			15,984			14,014			16,190
Tangible operating net income available to common stockholders (annualized) (non-GAAP)	$	511,319		$	579,572		$	509,445		$	594,195
Average total stockholders' equity	$	6,038,239		$	5,833,186		$	6,038,906		$	5,782,694
Less:  Average preferred stockholders' equity	—			(106,882)			(26,427)			(106,882)
Less:  Average intangible assets (1)	(2,539,710)			(2,558,631)			(2,541,871)			(2,561,087)
Average tangible common equity (non-GAAP)	$	3,498,529		$	3,167,673		$	3,470,608		$	3,114,725
Operating return on average tangible common equity (non-GAAP)	14.62		%	18.30		%	14.68		%	19.08		%

(1) Excludes loan servicing rights.

TABLE 36

Return on average tangible assets

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2024			2023			2024			2023
Net income (annualized)	$	494,851		$	571,131		$	493,431		$	582,582
Amortization of intangibles, net of tax (annualized)	13,913			15,984			14,014			16,190
Tangible net income (annualized) (non-GAAP)	$	508,764		$	587,115		$	507,445		$	598,772
Average total assets	$	46,471,781		$	44,410,312		$	46,074,685		$	43,918,841
Less: Average intangible assets (1)	(2,539,710)			(2,558,631)			(2,541,871)			(2,561,087)
Average tangible assets (non-GAAP)	$	43,932,071		$	41,851,681		$	43,532,814		$	41,357,754
Return on average tangible assets (non-GAAP)	1.16		%	1.40		%	1.17		%	1.45		%

(1) Excludes loan servicing rights.

TABLE 37

Tangible book value per common share

	June 30, 2024		June 30, 2023
(dollars in thousands, except per share data)
Total stockholders’ equity	$	6,089,634	$	5,817,749
Less: Preferred stockholders’ equity	—		(106,882)
Less: Intangible assets (1)	(2,537,532)		(2,556,307)
Tangible common equity (non-GAAP)	$	3,552,102	$	3,154,560
Ending common shares outstanding	359,558,026		358,820,568
Tangible book value per common share (non-GAAP)	$	9.88	$	8.79

(1) Excludes loan servicing rights.

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TABLE 38

Tangible common equity to tangible assets

	June 30, 2024			June 30, 2023
(dollars in thousands)
Total stockholders' equity	$	6,089,634		$	5,817,749
Less:  Preferred stockholders' equity	—			(106,882)
Less:  Intangible assets (1)	(2,537,532)			(2,556,307)
Tangible common equity (non-GAAP)	$	3,552,102		$	3,154,560
Total assets	$	47,714,742		$	44,777,964
Less:  Intangible assets (1)	(2,537,532)			(2,556,307)
Tangible assets (non-GAAP)	$	45,177,210		$	42,221,657
Tangible common equity to tangible assets (non-GAAP)	7.86		%	7.47		%

(1) Excludes loan servicing rights.

TABLE 39

Operating non-interest expense

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
(dollars in thousands)
Non-interest expense	$	226,612	$	211,955	$	463,708	$	431,872
Branch consolidations	—		—		(1,194)		—
Merger-related	—		(163)		—		(2,215)
FDIC special assessment	(804)		—		(5,212)		—
Reduction of previous estimated loss on indirect auto loan sale	—		—		2,603		—
Operating non-interest expense (non-GAAP)	$	225,808	$	211,792	$	459,905	$	429,657

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Key Performance Indicators

TABLE 40

Pre-provision net revenue:	Three Months Ended
(Dollars in thousands)	June 30, 2024		March 31, 2024
Net interest income	$	315,890	$	319,008
Non-interest income	87,922		87,862
Less: Non-interest expense	(226,612)		(237,096)
Pre-provision net revenue (reported) (non-GAAP)	$	177,200	$	169,774
Pre-provision net revenue (reported) (annualized) (non-GAAP)	$	712,695	$	682,825
Adjustments:
Add: Branch consolidation costs (non-interest expense)	—		1,194
Add: FDIC special assessment (non-interest expense)	804		4,408
Less: Reduction of previous estimated loss on indirect auto loan sale (non-interest expense)	—		(2,603)
Operating pre-provision net revenue (non-GAAP)	$	178,004	$	172,773
Operating pre-provision net revenue (annualized) (non-GAAP)	$	715,928	$	694,887

TABLE 41

Efficiency ratio

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2024			2023			2024			2023
Non-interest expense	$	226,612		$	211,955		$	463,708		$	431,872
Less: Amortization of intangibles	(4,379)			(5,044)			(8,821)			(10,163)
Less: OREO expense	(200)			(492)			(390)			(1,049)
Less: Merger-related expense	—			(163)			—			(2,215)
Less: Branch consolidation costs	—			—			(1,194)			—
Less: FDIC special assessment	(804)			—			(5,212)			—
Add: Reduction of previous estimated loss on indirect auto loan sale	—			—			2,603			—
Adjusted non-interest expense	$	221,229		$	206,256		$	450,694		$	418,445
Net interest income	$	315,890		$	329,244		$	634,898		$	665,898
Taxable equivalent adjustment	2,915			3,269			5,825			6,543
Non-interest income	87,922			80,309			175,784			159,698
Less: Net securities (gains) losses	3			6			3			23
Adjusted net interest income (FTE) + non-interest income	$	406,730		$	412,828		$	816,510		$	832,162
Efficiency ratio (FTE) (non-GAAP)	54.39		%	49.96		%	55.20		%	50.28		%

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ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The information called for by this item is provided in the Market Risk section of "MD&A," which is included in Item 2 of this Report, and is incorporated herein by reference.

ITEM 4.    CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. FNB’s management, with the participation of our principal executive and financial officers, evaluated our disclosure controls and procedures (as defined in Rules 13a–15(e) and 15d–15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on this evaluation, our management, including the Chief Executive Officer (CEO) and the Chief Financial Officer (CFO), concluded that, as of the end of the period covered by this quarterly report, our disclosure controls and procedures were effective as of such date at the reasonable assurance level as discussed below to ensure that information required to be disclosed by us in the reports we file under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

LIMITATIONS ON THE EFFECTIVENESS OF CONTROLS. FNB’s management, including the CEO and the CFO, does not expect that our disclosure controls and internal controls will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within FNB have been detected. These inherent limitations include the realities that judgments in decision making can be faulty, and that breakdowns can occur because of simple error or mistake. In addition, controls can be circumvented by the individual acts of some persons, by collusion of two or more people or by management override of the controls.

CHANGES IN INTERNAL CONTROLS. The CEO and the CFO have evaluated the changes to our internal controls over financial reporting that occurred during our fiscal quarter ended June 30, 2024, as required by paragraph (d) of Rules 13a–15 and 15d–15 under the Securities Exchange Act of 1934, as amended, and have concluded that there were no such changes that materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

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PART II - OTHER INFORMATION

ITEM 1.    LEGAL PROCEEDINGS

The information required by this Item is set forth in the “Other Legal Proceedings” discussion in Note 11, "Commitments, Credit Risk and Contingencies" of the Notes to the Consolidated Financial Statements, which is incorporated herein by reference in response to this Item.

ITEM 1A.    RISK FACTORS

For information regarding risk factors that could affect our results of operations, financial condition and liquidity, see the risk factors disclosed in the “Risk Factors” section of our 2023 Annual Report on Form 10-K. There were no material changes in risk factors relevant to our results of operations, financial condition or liquidity since December 31, 2023.

ITEM 2.    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table provides information regarding FNB's purchases of our common stock during the quarter ended June 30, 2024.
Period	Total number of shares purchased	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs	Maximum number (or approximate dollar value) of shares that may yet be purchased under the plans or programs (1)
May 1 - May 31, 2024	250,000	$	13.56	250,000	$	135,741,432
Total	250,000	$	13.56	250,000
(1) The number shown represents, as of the end of each period, the approximate dollar value of Common Stock that may yet be purchased under publicly-announced share repurchase authorizations. The shares may be purchased, from time-to-time, depending on market conditions. This program was announced on September 23, 2019 for the repurchase of up to an aggregate of $150 million of our common stock, with an additional $150 million available to repurchase in April 2022 bringing the total amount authorized for repurchase to $300 million.

ITEM 3.    DEFAULTS UPON SENIOR SECURITIES

NONE

ITEM 4.    MINE SAFETY DISCLOSURES

Not Applicable.

ITEM 5.    OTHER INFORMATION

During the three months ended June 30, 2024, no director or officer of FNB, nor FNB itself, adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

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ITEM 6.    EXHIBITS

Exhibit Index

Exhibit Number	Description
10.1	F.N.B. Corporation 2022 Incentive Compensation Plan amended and restated March 11, 2024. (Incorporated by reference to Annex D of FNB’s 2024 Proxy Statement filed on March 29, 2024).
31.1.	Certification of Chief Executive Officer Sarbanes-Oxley Act Section 302. (filed herewith).
31.2.	Certification of Chief Financial Officer Sarbanes-Oxley Act Section 302. (filed herewith).
32.1.	Certification of Chief Executive Officer Sarbanes-Oxley Act Section 906. (furnished herewith).
32.2.	Certification of Chief Financial Officer Sarbanes-Oxley Act Section 906. (furnished herewith).
101.INS	Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	Inline XBRL Taxonomy Extension Schema Document (filed herewith).
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document (filed herewith).
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document (filed herewith).
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document (filed herewith).
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document (filed herewith).
104	Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document).

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		F.N.B. Corporation
Dated:	August 6, 2024	/s/ Vincent J. Delie, Jr.
		Vincent J. Delie, Jr.
		Chairman, President and Chief Executive Officer
		(Principal Executive Officer)
Dated:	August 6, 2024	/s/ Vincent J. Calabrese, Jr.
		Vincent J. Calabrese, Jr.
		Chief Financial Officer
		(Principal Financial Officer)
Dated:	August 6, 2024	/s/ James L. Dutey
		James L. Dutey
		Corporate Controller
		(Principal Accounting Officer)

99

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

SARBANES-OXLEY ACT SECTION 302

I, Vincent J. Delie, Jr., certify that:

1.I have reviewed this quarterly report on Form 10-Q for the quarter ended June 30, 2024 of F.N.B. Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report.

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 6, 2024	/s/ Vincent J. Delie, Jr.
	Vincent J Delie, Jr. Chairman, President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

SARBANES-OXLEY ACT SECTION 302

I, Vincent J. Calabrese, Jr., certify that:

1.I have reviewed this quarterly report on Form 10-Q for the quarter ended June 30, 2024 of F.N.B. Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report.

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 6, 2024	/s/ Vincent J. Calabrese, Jr.
	Vincent J. Calabrese, Jr. Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

SARBANES-OXLEY ACT SECTION 906

Pursuant to Section 1350 of Title 18 of the United States Code, I, Vincent J. Delie, Jr., Chairman, President and Chief Executive Officer of F.N.B. Corporation (the “Company”), hereby certify that, to the best of my knowledge:

1.The Company’s Form 10-Q Quarterly Report for the period ended June 30, 2024 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 6, 2024	/s/ Vincent J. Delie, Jr.
	Vincent J Delie, Jr. Chairman, President and Chief Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

SARBANES-OXLEY ACT SECTION 906

Pursuant to Section 1350 of Title 18 of the United States Code, I, Vincent J. Calabrese, Jr., Chief Financial Officer of F.N.B. Corporation (the “Company”), hereby certify that, to the best of my knowledge:

1.The Company’s Form 10-Q Quarterly Report for the period ended June 30, 2024 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 6, 2024	/s/ Vincent J. Calabrese, Jr.
	Vincent J. Calabrese, Jr. Chief Financial Officer

XML

Cover Page - shares	6 Months Ended
	Jun. 30, 2024	Jul. 31, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-31940
Entity Registrant Name	FNB CORP/PA/
Entity Incorporation, State or Country Code	PA
Entity Tax Identification Number	25-1255406
Entity Address, Address Line One	One North Shore Center,
Entity Address, Address Line Two	12 Federal Street,
Entity Address, City or Town	Pittsburgh,
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	15212
City Area Code	800
Local Phone Number	555-5455
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	FNB
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding		359,571,111
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000037808
Current Fiscal Year End Date	--12-31

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions		Jun. 30, 2024	Dec. 31, 2023
Assets
Cash and due from banks		$ 448	$ 447
Interest-bearing deposits with banks		1,432	1,129
Cash and Cash Equivalents		1,880	1,576
Debt securities available for sale (amortized cost of $3,585 and $3,460; allowance for credit losses of $0 and $0)		3,364	3,254
Debt securities held to maturity (fair value of $3,532 and $3,593; allowance for credit losses of $0 and $0)		3,893	3,911
Loans held for sale (includes $128 and $150 measured at fair value)	[1]	132	488
Loans and leases, net of unearned income of $100 and $91 (includes $47 and $45 measured at fair value)	[1]	33,757	32,323
Allowance for credit losses on loans and leases		(419)	(406)
Net Loans and Leases		33,338	31,917
Premises and equipment, net		489	461
Goodwill		2,477	2,477
Core deposit and other intangible assets, net		60	69
Bank owned life insurance		667	660
Other assets		1,415	1,345
Total Assets		47,715	46,158
Liabilities
Non-interest-bearing demand		10,062	10,222
Interest-bearing demand		14,697	14,809
Savings		3,348	3,465
Certificates and other time deposits		6,887	6,215
Total Deposits		34,994	34,711
Short-term borrowings		3,616	2,506
Long-term borrowings		2,016	1,971
Other liabilities		999	920
Total Liabilities		41,625	40,108
Stockholders’ Equity
Preferred stock - Issued – 0 and 110,877 shares - $0.01 par value		0	107
Common stock - $0.01 par value Authorized – 500,000,000 shares Issued – 374,982,366 and 374,939,537 shares		4	4
Additional paid-in capital		4,690	4,692
Retained earnings		1,820	1,669
Accumulated other comprehensive loss		(243)	(235)
Treasury stock – 15,424,340 and 16,110,120 shares at cost		(181)	(187)
Total Stockholders’ Equity		6,090	6,050
Total Liabilities and Stockholders’ Equity		$ 47,715	$ 46,158

[1] Amount represents loans for which we have elected the fair value option. See Note 18.

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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Debt securities available for sale, amortized cost	$ 3,585,000,000	$ 3,460,000,000
Debt securities available for sale, allowance for credit losses	0	0
Debt securities held-to-maturity, fair value	3,532,000,000	3,593,000,000
Debt securities held to maturity, allowance for credit losses	270,000	280,000
Loans held for sale, fair value	128,000,000	150,000,000	[1]
Loans and leases, unearned income	100,000,000	91,000,000
Loans and leases, unearned income fair value	$ 47,000,000	$ 45,000,000
Preferred stock, shares issued (in shares)	0	110,877
Preferred stock, liquidation preference per share (USD per share)	$ 0.01	$ 0.01
Common stock, par value (USD per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	374,982,366	374,939,537
Treasury stock, shares (in shares)	15,424,340	16,110,120

[1] Amount represents loans for which we have elected the fair value option. See Note 18.

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CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Interest Income
Loans and leases, including fees	$ 494.0	$ 429.0	$ 975.0	$ 823.0
Securities:
Taxable	48.0	35.0	94.0	71.0
Tax-exempt	7.0	7.0	14.0	14.0
Other	8.0	13.0	17.0	20.0
Total Interest Income	557.0	484.0	1,100.0	928.0
Interest Expense
Deposits	180.0	112.0	350.0	196.0
Short-term borrowings	32.0	22.0	60.0	32.0
Long-term borrowings	29.0	21.0	55.0	34.0
Total Interest Expense	241.0	155.0	465.0	262.0
Net Interest Income	316.0	329.0	635.0	666.0
Provision for credit losses	20.2	18.5	34.1	32.6
Net Interest Income After Provision for Credit Losses	296.0	310.0	601.0	633.0
Non-Interest Income
Service charges	23.0	20.0	44.0	40.0
Interchange and card transaction fees	13.0	14.0	26.0	26.0
Trust services	12.0	10.0	23.0	21.0
Insurance commissions and fees	6.0	6.0	13.0	14.0
Securities commissions and fees	8.0	7.0	16.0	14.0
Capital markets income	5.0	6.0	11.0	13.0
Mortgage banking operations	7.0	5.0	15.0	10.0
Dividends on non-marketable equity securities	7.0	6.0	13.0	10.0
Bank owned life insurance	4.0	3.0	7.0	6.0
Other	3.0	4.0	8.0	6.0
Total Non-Interest Income	88.0	81.0	176.0	160.0
Non-Interest Expense
Salaries and employee benefits	121.0	114.0	250.0	234.0
Net occupancy	19.0	17.0	39.0	34.0
Equipment	24.0	21.0	48.0	43.0
Amortization of intangibles	5.0	5.0	9.0	10.0
Outside services	23.0	20.0	46.0	40.0
Marketing	4.0	4.0	9.0	8.0
FDIC insurance	10.0	8.0	23.0	15.0
Bank shares and franchise taxes	4.0	4.0	8.0	8.0
Merger-related	0.0	0.0	0.0	2.0
Other	17.0	19.0	32.0	38.0
Total Non-Interest Expense	227.0	212.0	464.0	432.0
Income Before Income Taxes	157.0	179.0	313.0	361.0
Income taxes	34.0	37.0	68.0	72.0
Net Income	123.0	142.0	245.0	289.0
Preferred stock dividends	0.0	2.0	6.0	4.0
Net income available to common stockholders	123.0	140.0	239.0	285.0
Net income available to common stockholders	$ 123.0	$ 140.0	$ 239.0	$ 285.0
Earnings per Common Share
Basic (USD per share)	$ 0.34	$ 0.39	$ 0.66	$ 0.79
Diluted (USD per share)	$ 0.34	$ 0.39	$ 0.66	$ 0.78

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 123	$ 142	$ 245	$ 289
Securities available for sale:
Unrealized gains (losses) arising during the period, net of tax expense (benefit) of $1, $(9), $(3) and $1	2	(31)	(11)	4
Derivative instruments:
Unrealized gains (losses) arising during the period, net of tax expense (benefit) of $0, $(4), $(3) and $(3)	(3)	(14)	(12)	(10)
Reclassification adjustment for gains included in net income, net of tax expense of $2, $1, $4 and $2	8	4	15	7
Pension and postretirement benefit obligations:
Unrealized gains arising during the period, net of tax expense of $0, $0, $0 and $0	0	1	0	1
Other Comprehensive Income (Loss)	7	(40)	(8)	2
Comprehensive Income	$ 130	$ 102	$ 237	$ 291

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Comprehensive Income [Abstract]
Unrealized gains (losses) arising during the period, tax expense (benefit)	$ 1	$ (9)	$ (3)	$ 1
Unrealized gains (losses) arising during the period, tax expense (benefit)	0	(4)	(3)	(3)
Reclassification adjustment for gains included in net income, tax expense	2	1	4	2
Unrealized gains arising during the period, tax expense	$ 0	$ 0	$ 0	$ 0

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CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Millions	Total	Adoption of new accounting standard	Preferred Stock	Common Stock	Additional Paid-In Capital	Retained Earnings	Retained Earnings Adoption of new accounting standard	Accumulated Other Comprehensive Income (Loss)	Treasury Stock
Balance at beginning of period at Dec. 31, 2022	$ 5,653.0		$ 107.0	$ 4.0	$ 4,696.0	$ 1,370.0		$ (357.0)	$ (167.0)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income (loss)	291.0					289.0		2.0
Dividends declared:
Preferred stock	(4.0)					(4.0)
Common stock	(87.0)					(87.0)
Issuance of common stock	(10.0)				(22.0)	(4.0)			16.0
Repurchase of common stock	(37.0)								(37.0)
Restricted stock compensation	12.0				12.0
Balance at end of period at Jun. 30, 2023	5,818.0		107.0	4.0	4,686.0	1,564.0		(355.0)	(188.0)
Balance at beginning of period at Dec. 31, 2022	5,653.0		107.0	4.0	4,696.0	1,370.0		(357.0)	(167.0)
Balance at end of period at Dec. 31, 2023	$ 6,050.0	$ (1.0)	107.0	4.0	4,692.0	1,669.0	$ (0.5)	(235.0)	(187.0)
Dividends declared:
Accounting Standards Update [Extensible Enumeration]	Accounting Standards Update 2023-02 [Member]
Balance at beginning of period at Mar. 31, 2023	$ 5,788.0		107.0	4.0	4,693.0	1,471.0		(315.0)	(172.0)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income (loss)	102.0					142.0		(40.0)
Dividends declared:
Preferred stock	(2.0)					(2.0)
Common stock	(43.0)					(43.0)
Issuance of common stock	(4.0)				(9.0)	(4.0)			9.0
Repurchase of common stock	(25.0)								(25.0)
Restricted stock compensation	2.0				2.0
Balance at end of period at Jun. 30, 2023	5,818.0		107.0	4.0	4,686.0	1,564.0		(355.0)	(188.0)
Balance at beginning of period at Dec. 31, 2023	6,050.0	$ (1.0)	107.0	4.0	4,692.0	1,669.0	$ (0.5)	(235.0)	(187.0)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income (loss)	237.0					245.0		(8.0)
Dividends declared:
Preferred stock	(2.0)					(2.0)
Common stock	(87.0)					(87.0)
Redemption of preferred stock	(111.0)		(107.0)			(4.0)
Issuance of common stock	(5.0)				(14.0)				9.0
Repurchase of common stock	(3.0)								(3.0)
Restricted stock compensation	12.0				12.0
Balance at end of period at Jun. 30, 2024	6,090.0		0.0	4.0	4,690.0	1,820.0		(243.0)	(181.0)
Balance at beginning of period at Mar. 31, 2024	6,006.0		0.0	4.0	4,694.0	1,740.0		(250.0)	(182.0)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income (loss)	130.0					123.0		7.0
Dividends declared:
Common stock	(43.0)					(43.0)
Issuance of common stock	(2.0)				(6.0)				4.0
Repurchase of common stock	(3.0)								(3.0)
Restricted stock compensation	2.0				2.0
Balance at end of period at Jun. 30, 2024	$ 6,090.0		$ 0.0	$ 4.0	$ 4,690.0	$ 1,820.0		$ (243.0)	$ (181.0)

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CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Stockholders' Equity [Abstract]
Preferred stock dividends per share (USD per share)		$ 18.13	$ 18.13	$ 36.26
Common stock dividends per share (USD per share)	$ 0.12	$ 0.12	$ 0.24	$ 0.24

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Operating Activities
Net income	$ 245.0	$ 289.0
Adjustments to reconcile net income to net cash flows provided by (used in) operating activities:
Depreciation, amortization and accretion	32.0	42.0
Provision for credit losses	34.1	32.6
Deferred tax expense (benefit)	16.0	(3.0)
Loans originated for sale	(681.0)	(458.0)
Loans sold	702.0	459.0
Net (gain) loss on sale of loans	(9.0)	3.0
Net change in:
Interest receivable	(17.0)	(11.0)
Interest payable	4.0	24.0
Bank owned life insurance, excluding purchases	(6.0)	(5.0)
Other, net	10.0	(224.0)
Net cash flows provided by operating activities	330.0	149.0
Investing Activities
Net change in loans and leases, excluding sales and transfers	(1,449.0)	(1,092.0)
Debt securities available for sale:
Purchases	(725.0)	(135.0)
Maturities/payments	603.0	234.0
Debt securities held to maturity:
Purchases	(173.0)	(75.0)
Maturities/payments	194.0	175.0
Increase in premises and equipment	(59.0)	(60.0)
Net proceeds from sales of portfolio loans	345.0	0.0
Net cash flows provided by (used in) investing activities	(1,264.0)	(953.0)
Financing Activities
Demand (non-interest-bearing and interest-bearing) and savings accounts	(389.0)	(2,668.0)
Time deposits	670.0	1,721.0
Short-term borrowings	1,110.0	1,019.0
Proceeds from issuance of long-term borrowings	271.0	1,220.0
Repayment of long-term borrowings	(227.0)	(332.0)
Redemption of preferred stock	(111.0)	0.0
Repurchases of common stock	(3.0)	(37.0)
Cash dividends paid:
Preferred stock	(2.0)	(4.0)
Common stock	(87.0)	(87.0)
Other, net	6.0	2.0
Net cash flows provided by (used in) financing activities	1,238.0	834.0
Net Increase (Decrease) in Cash and Cash Equivalents	304.0	30.0
Cash and cash equivalents at beginning of period	1,576.0	1,674.0
Cash and Cash Equivalents at End of Period	$ 1,880.0	$ 1,704.0

XML

NATURE OF OPERATIONS

6 Months Ended

Jun. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

NATURE OF OPERATIONS

NATURE OF OPERATIONS

F.N.B. Corporation, headquartered in Pittsburgh, Pennsylvania, is a diversified financial services company operating in seven states and the District of Columbia. Our market coverage spans several major metropolitan areas including: Pittsburgh, Pennsylvania; Baltimore, Maryland; Cleveland, Ohio; Washington, D.C.; Charlotte, Raleigh, Durham and the Piedmont Triad (Winston-Salem, Greensboro and High Point) in North Carolina; and Charleston, South Carolina. As of June 30, 2024, we had 345 branches throughout Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington D.C. and Virginia.

We provide a full range of commercial banking, consumer banking and wealth management solutions through our subsidiary network which is led by our largest affiliate, FNBPA, founded in 1864. Commercial banking solutions include corporate banking, small business banking, investment real estate financing, government banking, business credit, capital markets and lease financing. Consumer banking provides a full line of consumer banking products and services, including deposit products, mortgage lending, consumer lending and a complete suite of mobile and online banking services. Wealth management services include asset management, private banking and insurance.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Our accompanying Consolidated Financial Statements and these Notes to Consolidated Financial Statements (unaudited) include subsidiaries in which we have a controlling financial interest. We own and operate FNBPA, First National Trust Company, First National Investment Services Company, LLC, F.N.B. Investment Advisors, Inc., First National Insurance Agency, LLC, Bank Capital Services, LLC, F.N.B. Capital Corporation, LLC and Waubank Securities, LLC, and include results for each of these entities in the accompanying Consolidated Financial Statements.

Companies in which we hold a controlling financial interest, or are a VIE in which we have the power to direct the activities of an entity that most significantly impact the entity’s economic performance and have an obligation to absorb losses or the right to receive benefits which could potentially be significant to the VIE, are consolidated. For a voting interest entity, a controlling financial interest is generally where we hold more than 50% of the outstanding voting shares. VIEs in which we do not hold the power to direct the activities of the entity that most significantly impact the entity’s economic performance or an obligation to absorb losses or the right to receive benefits which could potentially be significant to the VIE are not consolidated. Investments in companies that are not consolidated are accounted for using the equity method when we have the ability to exert significant influence or the cost method when we do not have the ability to exert significant influence. Investments in private investment partnerships that are accounted for under the equity method or the cost method are included in other assets and our proportional interest in the equity investments’ earnings are included in other non-interest income. Investment interests accounted for under the cost and equity methods are periodically evaluated for impairment.

The accompanying interim unaudited Consolidated Financial Statements include all adjustments that are necessary, in the opinion of management, to fairly reflect our financial position and results of operations in accordance with GAAP. All significant intercompany balances and transactions have been eliminated. Certain prior period amounts have been reclassified to the current period presentation. Such reclassifications had no impact on our net income and stockholders' equity. Events occurring subsequent to June 30, 2024 have been evaluated for potential recognition or disclosure in the Consolidated Financial Statements through the date of the filing of the Consolidated Financial Statements with the SEC.

Certain information and Note disclosures normally included in Consolidated Financial Statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. The interim operating results are not necessarily indicative of operating results we expect for the full year. These interim unaudited Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto included in our 2023 Annual Report on Form 10-K filed with the SEC on February 26, 2024.

Use of Estimates

Our accounting and reporting policies conform with GAAP. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes to Consolidated Financial Statements (unaudited). Actual results could materially differ from those estimates. Material estimates that are particularly susceptible to significant changes include the ACL, fair value of financial instruments, goodwill and other intangible assets and income taxes and deferred tax assets, which are listed in the critical accounting estimates. For a detailed description of our significant accounting policies and critical accounting estimates, see Note 1, "Summary of Significant Accounting Policies" and the "Application of Critical Accounting Policies" section in the MD&A, both in our 2023 Annual Report on Form 10-K.

Adoption of New Accounting Standards

Effective January 1, 2024, we adopted the provision of ASU 2023-02, Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, which permits reporting entities to make an accounting policy election to account for tax equity investments using the proportional amortization method if certain conditions are met. The election is to be made on a tax-credit-program-by-tax-credit-program basis and should be applied consistently to all investments within an elected tax credit program. Upon the adoption of ASU 2023-02, we elected to apply the proportional amortization method of accounting to our qualifying historic and new market tax credit investments. The proportional amortization method recognizes the amortized cost of the investment as a component of income tax expense on the consolidated statements of income and as a component of operating activities within other assets and other liabilities on the consolidated statements of cash flows. We historically applied proportional amortization to the majority of our LIHTC investments. LIHTCs that do not meet the requirements of the proportional amortization method are recognized using the equity method. See Note 8, "Variable Interest Entities" for additional information.

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NEW ACCOUNTING STANDARDS

6 Months Ended

Jun. 30, 2024

Accounting Changes and Error Corrections [Abstract]

NEW ACCOUNTING STANDARDS

NEW ACCOUNTING STANDARDS

The following table summarizes accounting pronouncements issued by the FASB that we recently adopted or will be adopting in the future.

TABLE 2.1

Standard	Description	Financial Statements Impact
Income Taxes
ASU 2023-09, Income Taxes: Improvements to Income Tax Disclosures	This Update requires public business entities to disclose additional categories of information about federal, state, and foreign income taxes in the tabular rate reconciliation table. Additionally, entities must provide more details regarding reconciling items in some categories if the items are equal to or greater than a specified quantitative threshold. This Update also requires all entities to annually disclose income taxes paid, net of refunds received, disaggregated by federal, state, and foreign taxes and further disaggregated by jurisdiction based on a specified quantitative threshold.	This Update is to be applied using a prospective method with an option to apply it retrospectively for each period presented and will be effective as of January 1, 2025. Early adoption is permitted. We are currently evaluating the effect this Update will have on our consolidated financial statements, the related disclosures and our processes, systems, and controls related to disclosures.

Standard	Description	Financial Statements Impact
Segment Reporting
ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure	This Update requires all public entities to disclose significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required in annual disclosures.	This Update is to be applied using a retrospective method to all prior periods presented and is effective for annual periods beginning on January 1, 2024, and will be effective for interim periods beginning on January 1, 2025. Early adoption is permitted. We do not expect the adoption of this Update to materially impact our consolidated financial statements and we are currently evaluating the effect this Update will have on the related disclosures.
Tax Equity Investments
ASU 2023-02, Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method	This Update expands the use of the proportional amortization method of accounting, previously only allowable for LIHTC investments, to equity investments in other tax credit structures that meet certain criteria. The Update also removed the specialized guidance for LIHTC investments that are not accounted for using the proportional amortization method or equity method and require that those investments are accounted for using Topic 321 regarding equity investments.	This Update is to be applied using either a modified retrospective or a retrospective method and is effective as of January 1, 2024. Early adoption of this Update is permitted. We adopted this Update on January 1, 2024 on a modified retrospective basis for tax credit programs that are eligible to apply proportional amortization. As a result, we recorded a reduction of $0.5 million in retained earnings for the cumulative effect of the adoption.

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SECURITIES

6 Months Ended

Jun. 30, 2024

Investments, Debt and Equity Securities [Abstract]

SECURITIES

SECURITIES

The amortized cost and fair value of AFS debt securities are presented in the table below. There was no ACL associated with the AFS portfolio at June 30, 2024 and December 31, 2023. Accrued interest receivable on AFS debt securities totaled $13.3 million at June 30, 2024 and $9.6 million at December 31, 2023, and is excluded from the estimate of credit losses and assessed separately in other assets in the Consolidated Balance Sheets. Accordingly, we have excluded accrued interest receivable from both the fair value and amortized cost basis of AFS debt securities.

TABLE 3.1

(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair  Value
Debt Securities AFS:
June 30, 2024
U.S. Treasury	$	199	$	—	$	(2)	$	197
U.S. government agencies	67		—		—		67
U.S. government-sponsored entities	301		1		(4)		298
Residential MBS:
Agency MBS	951		—		(65)		886
Agency collateralized mortgage obligations	871		—		(113)		758
Agency commercial MBS	1,127		3		(38)		1,092
States of the U.S. and political subdivisions (municipals)	28		—		(2)		26
Other debt securities	41		—		(1)		40
Total debt securities AFS	$	3,585	$	4	$	(225)	$	3,364

(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair  Value
Debt Securities AFS:
December 31, 2023
U.S. Treasury	$	422	$	—	$	(2)	$	420
U.S. government agencies	78		1		—		79
U.S. government-sponsored entities	227		—		(4)		223
Residential MBS:
Agency MBS	814		—		(62)		752
Agency collateralized mortgage obligations	946		—		(114)		832
Agency commercial MBS	905		9		(30)		884
States of the U.S. and political subdivisions (municipals)	30		—		(3)		27
Other debt securities	38		—		(1)		37
Total debt securities AFS	$	3,460	$	10	$	(216)	$	3,254

The amortized cost and fair value of HTM debt securities are presented in the following table. The ACL for the HTM portfolio was $0.27 million and $0.28 million at June 30, 2024 and December 31, 2023, respectively. Accrued interest receivable on HTM debt securities totaled $14.1 million and $14.7 million at June 30, 2024 and December 31, 2023, respectively, and is excluded from the estimate of credit losses and assessed separately in other assets in the Consolidated Balance Sheets. Accordingly, we have excluded accrued interest receivable from both the fair value and amortized cost basis of HTM debt securities.

TABLE 3.2

(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair  Value
Debt Securities HTM:
June 30, 2024
U.S. Treasury	$	1	$	—	$	—	$	1
U.S. government agencies	1		—		—		1
U.S. government-sponsored entities	28		—		—		28
Residential MBS:
Agency MBS	977		1		(106)		872
Agency collateralized mortgage obligations	769		—		(108)		661
Agency commercial MBS	1,094		2		(50)		1,046
States of the U.S. and political subdivisions (municipals)	1,007		—		(98)		909
Other debt securities	16		—		(2)		14
Total debt securities HTM	$	3,893	$	3	$	(364)	$	3,532

(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair  Value
Debt Securities HTM:
December 31, 2023
U.S. government agencies	$	1	$	—	$	—	$	1
U.S. government-sponsored entities	68		—		—		68
Residential MBS:
Agency MBS	1,057		2		(101)		958
Agency collateralized mortgage obligations	824		—		(104)		720
Agency commercial MBS	929		4		(43)		890
States of the U.S. and political subdivisions (municipals)	1,017		2		(77)		942
Other debt securities	15		—		(1)		14
Total debt securities HTM	$	3,911	$	8	$	(326)	$	3,593

There were no significant gross gains or gross losses realized on securities during the six months ended June 30, 2024 or 2023. In the fourth quarter of 2023, we sold $648.7 million of AFS securities resulting in a realized loss of $67.4 million as part of a proactive balance sheet management strategy. Unrealized losses on the AFS and HTM portfolios are due to the increase in market interest rates with 85.0% of these securities backed or sponsored by the U.S. government as of June 30, 2024.

As of June 30, 2024, the amortized cost and fair value of debt securities, by contractual maturities, were as follows:

TABLE 3.3

	Available for Sale				Held to Maturity
(in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	112	$	110	$	3	$	3
Due after one year but within five years	461		456		86		82
Due after five years but within ten years	33		32		224		207
Due after ten years	30		30		740		661
	636		628		1,053		953
Residential MBS:
Agency MBS	951		886		977		872
Agency collateralized mortgage obligations	871		758		769		661
Agency commercial MBS	1,127		1,092		1,094		1,046
Total debt securities	$	3,585	$	3,364	$	3,893	$	3,532

Actual maturities may differ from contractual terms because security issuers may have the right to call or prepay obligations with or without penalties. Periodic principal payments are received on residential MBS based on the payment patterns of the underlying collateral.

Following is information relating to securities pledged:

TABLE 3.4

(dollars in millions)	June 30, 2024			December 31, 2023
Securities pledged (carrying value):
To secure public deposits, trust deposits and for other purposes as required by law	$	5,805		$	6,190
As collateral for short-term borrowings	225			250
Securities pledged as a percent of total securities	83.1		%	89.9		%

Following are summaries of the fair values of AFS debt securities in an unrealized loss position for which an ACL has not been recorded, segregated by security type and length of time in a continuous loss position:

TABLE 3.5

	Less than 12 Months					12 Months or More					Total
(dollars in millions)	#	Fair  Value		Unrealized Losses		#	Fair  Value		Unrealized Losses		#	Fair  Value		Unrealized Losses
Debt Securities AFS
June 30, 2024
U.S. Treasury	1	$	49	$	—	2	$	74	$	(2)	3	$	123	$	(2)
U.S. government agencies	—	—		—		13	31		—		13	31		—
U.S. government-sponsored entities	3	74		—		7	123		(4)		10	197		(4)
Residential MBS:
Agency MBS	6	179		(1)		104	659		(64)		110	838		(65)
Agency collateralized mortgage obligations	—	—		—		69	758		(113)		69	758		(113)
Agency commercial MBS	16	494		(5)		20	361		(33)		36	855		(38)
States of the U.S. and political subdivisions (municipals)	—	—		—		12	26		(2)		12	26		(2)
Other debt securities	1	5		—		7	18		(1)		8	23		(1)
Total	27	$	801	$	(6)	234	$	2,050	$	(219)	261	$	2,851	$	(225)
	Less than 12 Months					12 Months or More					Total
(dollars in millions)	#	Fair  Value		Unrealized Losses		#	Fair  Value		Unrealized Losses		#	Fair  Value		Unrealized Losses
Debt Securities AFS
December 31, 2023
U.S. Treasury	—	$	—	$	—	2	$	73	$	(2)	2	$	73	$	(2)
U.S. government agencies	2	4		—		12	36		—		14	40		—
U.S. government-sponsored entities	1	25		—		7	123		(4)		8	148		(4)
Residential MBS:
Agency MBS	—	—		—		104	750		(62)		104	750		(62)
Agency collateralized mortgage obligations	—	—		—		71	832		(114)		71	832		(114)
Agency commercial MBS	1	32		—		20	377		(30)		21	409		(30)
States of the U.S. and political subdivisions (municipals)	—	—		—		13	27		(3)		13	27		(3)
Other debt securities	2	9		—		7	17		(1)		9	26		(1)
Total	6	$	70	$	—	236	$	2,235	$	(216)	242	$	2,305	$	(216)

We evaluated the AFS debt securities that were in an unrealized loss position at June 30, 2024. Based on the credit ratings and implied government guarantee for these securities, we concluded the loss position is temporary and caused by the significant movement of interest rates since 2022 and does not reflect any expected credit losses. We do not intend to sell these AFS debt securities and it is not more likely than not that we will be required to sell these securities before the recovery of their amortized cost basis.

Credit Quality Indicators

We use credit ratings and the most recent financial information to help evaluate the credit quality of our credit-related AFS and HTM securities portfolios. Management reviews the credit profile of each issuer on an annual basis, and more frequently as needed. Based on the nature of the issuers and current conditions, we have determined that securities backed by the UST, Fannie Mae, Freddie Mac, FHLB, Ginnie Mae, and the SBA have zero expected credit loss.

Our municipal bond portfolio, with a carrying amount of $1.0 billion as of June 30, 2024 is highly rated with an average rating of AA and over 99% of the portfolio rated A or better. All of the securities in the municipal portfolio are general obligation bonds. Geographically, municipal bonds support our primary footprint as 60% of the securities are from municipalities located in the primary states within which we conduct business. The average holding size of the securities in the municipal bond portfolio is $2.5 million. In addition to the strong stand-alone ratings, 61% of the municipal bonds have some formal credit enhancement (e.g., insurance) that strengthens the creditworthiness of the bond.

The ACL on the HTM municipal bond portfolio is calculated on each bond using:

•The bond’s underlying credit rating, time to maturity and exposure amount;

•Credit enhancements that improve the bond’s credit rating (e.g., insurance); and

•Moody’s U.S. Bond Defaults and Recoveries, 1970-2022 study.

By using these components, we derive the expected credit loss on the HTM general obligation municipal bond portfolio. We further refine the expected credit loss by factoring in economic forecast data using our Commercial and Industrial Non-Manufacturing loan portfolio forecast adjustment as derived through our assessment of the loan portfolio as a proxy for our municipal bond portfolio.

Our corporate bond portfolio, with a carrying amount of $56.1 million as of June 30, 2024 primarily consists of subordinated debentures of banks within our footprint. The average holding size of the securities in the corporate bond portfolio is $3.1 million.

The ACL on the HTM corporate bond portfolio is calculated using:

•The bond’s credit rating, time to maturity and exposure amount;

•Moody’s Annual Default Study, 02/26/2024; and

•The most recent financial statements.

By using these components, we derive the expected credit loss on the HTM corporate bond portfolio. We further refine the expected credit loss by factoring in economic forecast data using our bank-wide loan portfolio forecast adjustment as derived through our assessment of FNBPA's loan portfolio as a proxy for our corporate bond portfolio.

For the year-to-date periods ending June 30, 2024 and 2023, we had no significant provision expense and no charge-offs or recoveries for the securities portfolio. The ACL on the HTM portfolio was $0.27 million, consisting of $0.06 million relating to the municipal bond portfolio and $0.21 million relating to other debt securities, as of June 30, 2024, and $0.06 million relating to the municipal bond portfolio and $0.22 million relating to other debt securities as of December 31, 2023. The AFS securities portfolios did not have an ACL at June 30, 2024 or December 31, 2023 and there were no securities that were past due or on non-accrual at either date.

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LOANS AND LEASES

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

LOANS AND LEASES

LOANS AND LEASES

Accrued interest receivable on loans and leases, which totaled $141.6 million at June 30, 2024 and $128.6 million at December 31, 2023, is excluded from the estimate of credit losses and assessed separately in other assets in the Consolidated Balance Sheets for both periods and is not included in the following tables.

Loans and Leases by Portfolio Segment

Following is a summary of total loans and leases, net of unearned income:

TABLE 4.1

(in millions)	June 30, 2024		December 31, 2023
Commercial real estate	$	12,664	$	12,305
Commercial and industrial	7,597		7,482
Commercial leases	683		599
Other	145		110
Total commercial loans and leases	21,089		20,496
Direct installment	2,700		2,741
Residential mortgages	7,459		6,640
Indirect installment	1,188		1,149
Consumer lines of credit	1,321		1,297
Total consumer loans	12,668		11,827
Total loans and leases, net of unearned income	$	33,757	$	32,323

The remaining accretable discount included in the amortized cost of acquired loans was $35.8 million and $42.6 million at June 30, 2024 and December 31, 2023, respectively.

The loans and leases portfolio categories are comprised of the following types of loans, where in each case the LGD is dependent on the nature and value of the respective collateral:

•Commercial real estate includes both owner-occupied and non-owner-occupied loans, including construction loans, secured by commercial properties where operational cash flows on owner-occupied properties, including rents paid by stand-alone business customers, or rents received by our borrowers from their tenant(s) on both a property and global basis are the primary default risk drivers;

•Commercial and industrial includes loans to businesses that are not secured by real estate where the borrower's leverage and cash flows from operations are the primary default risk drivers;

•Commercial leases consist of leases for new or used equipment where the borrower's cash flow from operations is the primary default risk driver;

•Other is comprised primarily of credit cards and mezzanine loans where the borrower's cash flow from operations is the primary default risk driver;

•Direct installment is comprised of fixed-rate, closed-end consumer loans for personal, family or household use, such as home equity loans and automobile loans where the primary default risk driver is the borrower's employment status and income;

•Residential mortgages consist of conventional and jumbo mortgage loans, including construction loans, for 1-4 family properties where the primary default risk driver is the borrower's employment status and income;

•Indirect installment is comprised of loans originated by approved third parties and underwritten by us, primarily automobile loans where the primary default risk driver is the borrower's employment status and income; and

•Consumer lines of credit include home equity lines of credit and consumer lines of credit that are either unsecured or secured by collateral other than home equity where the primary default risk driver is the borrower's employment status and income.

The loans and leases portfolio consists principally of loans to individuals and small- and medium-sized businesses within our primary market in seven states and the District of Columbia. Our primary market coverage spans several major metropolitan areas including: Pittsburgh, Pennsylvania; Baltimore, Maryland; Cleveland, Ohio; Washington, D.C.; Charlotte, Raleigh, Durham and the Piedmont Triad (Winston-Salem, Greensboro and High Point) in North Carolina; and Charleston, South Carolina.

The following table shows occupancy information relating to commercial real estate loans:

TABLE 4.2

(dollars in millions)	June 30, 2024		December 31, 2023
Commercial real estate:
Percent owner-occupied	29.5	%	29.0	%
Percent non-owner-occupied	70.5		71.0

Credit Quality

We monitor the credit quality of our loan portfolio using several performance measures based on payment activity and borrower performance. We use an internal risk rating assigned to a commercial loan or lease at origination, summarized below.

TABLE 4.3

Rating Category	Definition
Pass	in general, the condition of the borrower and the performance of the loan is satisfactory or better
Special Mention	in general, the condition of the borrower has deteriorated, requiring an increased level of monitoring
Substandard	in general, the condition of the borrower has significantly deteriorated and the performance of the loan could further deteriorate if deficiencies are not corrected
Doubtful	in general, the condition of the borrower has significantly deteriorated and the collection in full of both principal and interest is highly questionable or improbable

The use of these internally assigned credit quality categories within the commercial loan and lease portfolio permits our use of transition matrices to establish a basis which is then impacted by quantitative inputs from our econometric model forecasts over the R&S period. Our internal credit risk grading system is based on past experiences with similarly graded loans and leases and conforms to regulatory categories. In general, loan and lease risk ratings within each category are reviewed on an ongoing basis according to our policy for each class of loans and leases. Each quarter, we analyze the resulting ratings, as well as other external statistics and factors such as delinquency, to track the migration performance of the commercial loan and lease portfolio. Loans and leases within the Pass credit category or that migrate toward the Pass credit category generally have a lower risk of loss compared to loans and leases that migrate toward the Substandard or Doubtful credit categories. Accordingly, we apply higher risk factors to Substandard and Doubtful credit categories.

The following table summarizes the designated loan rating category by loan class including term loans on an amortized cost basis by origination year and year-to-date gross charge-offs by originating year:

TABLE 4.4

June 30, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
(in millions)
COMMERCIAL
Commercial Real Estate:
Risk Rating:
Pass	$	708	$	1,570	$	2,133	$	2,187	$	1,338	$	3,515	$	176	$	11,627
Special Mention	1		14		155		81		140		241		35		667
Substandard	6		16		56		73		20		196		3		370
Total commercial real estate	715		1,600		2,344		2,341		1,498		3,952		214		12,664
Commercial real estate current period gross charge-offs	—		0.3		0.6		0.3		0.1		9.0		—		10.3
Commercial and Industrial:
Risk Rating:
Pass	490		1,360		1,169		671		466		753		2,061		6,970
Special Mention	1		31		37		119		14		70		36		308
Substandard	1		43		20		50		6		81		118		319
Total commercial and industrial	492		1,434		1,226		840		486		904		2,215		7,597
Commercial and industrial current period gross charge-offs	—		0.5		1.0		1.0		0.9		5.2		—		8.6
Commercial Leases:
Risk Rating:
Pass	179		207		121		69		36		48		—		660
Special Mention	—		1		—		—		—		1		—		2
Substandard	—		7		2		5		6		1		—		21
Total commercial leases	179		215		123		74		42		50		—		683
Commercial leases current period gross charge-offs	—		—		—		—		—		0.2		—		0.2
Other Commercial:
Risk Rating:
Pass	8		54		—		—		—		6		77		145
Total other commercial	8		54		—		—		—		6		77		145
Other commercial current period gross charge-offs	—		—		—		—		—		1.9		—		1.9
Total commercial loans and leases	1,394		3,303		3,693		3,255		2,026		4,912		2,506		21,089

June 30, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
(in millions)
CONSUMER
Direct Installment:
Current	165		310		667		732		366		447		—		2,687
Past due	—		1		1		1		1		9		—		13
Total direct installment	165		311		668		733		367		456		—		2,700
Direct installment current period gross charge-offs	—		0.1		0.1		0.1		—		0.3		—		0.6
Residential Mortgages:
Current	918		1,499		1,642		1,469		763		1,109		1		7,401
Past due	1		8		6		6		3		34		—		58
Total residential mortgages	919		1,507		1,648		1,475		766		1,143		1		7,459
Residential mortgages current period gross charge-offs	—		0.1		—		—		—		0.1		—		0.2
Indirect Installment:
Current	256		269		323		188		72		60		—		1,168
Past due	—		3		7		7		2		1		—		20
Total indirect installment	256		272		330		195		74		61		—		1,188
Indirect installment current period gross charge-offs	—		0.8		2.5		1.6		0.3		0.2		—		5.4
Consumer Lines of Credit:
Current	5		34		56		13		3		117		1,078		1,306
Past due	—		—		1		1		—		11		2		15
Total consumer lines of credit	5		34		57		14		3		128		1,080		1,321
Consumer lines of credit current period gross charge-offs	—		—		0.1		—		—		0.5		—		0.6
Total consumer loans	1,345		2,124		2,703		2,417		1,210		1,788		1,081		12,668
Total loans and leases	$	2,739	$	5,427	$	6,396	$	5,672	$	3,236	$	6,700	$	3,587	$	33,757
Total charge-offs	$	—	$	1.8	$	4.3	$	3.0	$	1.3	$	17.4	$	—	$	27.8

December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
(in millions)
COMMERCIAL
Commercial Real Estate:
Risk Rating:
Pass	$	1,508	$	2,133	$	2,298	$	1,449	$	1,131	$	2,711	$	230	$	11,460
Special Mention	10		66		76		136		105		197		5		595
Substandard	5		27		27		13		59		104		15		250
Total commercial real estate	1,523		2,226		2,401		1,598		1,295		3,012		250		12,305
Commercial real estate current period gross charge-offs	0.2		0.4		0.4		0.7		0.2		10.5		—		12.4
Commercial and Industrial:
Risk Rating:
Pass	1,509		1,369		844		575		370		585		1,773		7,025
Special Mention	12		3		56		2		12		35		35		155
Substandard	34		26		62		9		24		58		89		302
Total commercial and industrial	1,555		1,398		962		586		406		678		1,897		7,482
Commercial and industrial current period gross charge-offs	0.1		0.3		1.0		1.0		2.2		46.6		—		51.2
Commercial Leases:
Risk Rating:
Pass	247		134		82		47		24		41		—		575
Special Mention	—		1		—		—		—		1		—		2
Substandard	7		3		4		7		1		—		—		22
Total commercial leases	254		138		86		54		25		42		—		599
Commercial leases current period gross charge-offs	—		—		—		—		—		—		—		—
Other Commercial:
Risk Rating:
Pass	39		—		—		—		—		8		63		110
Total other commercial	39		—		—		—		—		8		63		110
Other commercial current period gross charge-offs	—		—		—		—		—		4.5		—		4.5
Total commercial loans and leases	3,371		3,762		3,449		2,238		1,726		3,740		2,210		20,496

December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
(in millions)
CONSUMER
Direct Installment:
Current	340		712		784		392		136		364		—		2,728
Past due	—		1		—		1		1		10		—		13
Total direct installment	340		713		784		393		137		374		—		2,741
Direct installment current period gross charge-offs	—		0.2		0.1		0.1		—		0.2		—		0.6
Residential Mortgages:
Current	1,421		1,686		1,516		799		343		819		1		6,585
Past due	3		6		5		3		3		35		—		55
Total residential mortgages	1,424		1,692		1,521		802		346		854		1		6,640
Residential mortgages current period gross charge-offs	—		—		—		—		—		0.7		—		0.7
Indirect Installment:
Current	311		387		238		100		42		49		—		1,127
Past due	2		8		8		2		1		1		—		22
Total indirect installment	313		395		246		102		43		50		—		1,149
Indirect installment current period gross charge-offs	0.4		4.3		3.7		0.6		0.3		1.4		—		10.7
Consumer Lines of Credit:
Current	38		61		14		2		3		117		1,044		1,279
Past due	—		1		1		—		—		13		3		18
Total consumer lines of credit	38		62		15		2		3		130		1,047		1,297
Consumer lines of credit current period gross charge-offs	0.1		—		—		—		—		0.9		—		1.0
Total consumer loans	2,115		2,862		2,566		1,299		529		1,408		1,048		11,827
Total loans and leases	$	5,486	$	6,624	$	6,015	$	3,537	$	2,255	$	5,148	$	3,258	$	32,323
Total charge-offs	$	0.8	$	5.2	$	5.2	$	2.4	$	2.7	$	64.8	$	—	$	81.1

We use delinquency transition matrices within the consumer and other loan classes to establish the basis for the R&S forecast portion of the credit risk. Each month, management analyzes payment and volume activity, FICO scores and Debt-to-Income (DTI) scores and other external factors such as unemployment, to determine how consumer loans are performing.

Non-Performing and Past Due

The following table provides an analysis of the aging of loans by class.

TABLE 4.5

(in millions)	30-89 Days Past Due		> 90 Days Past Due and Still Accruing		Non- Accrual		Total Past Due		Current		Total Loans and Leases		Non-accrual with No ACL
June 30, 2024
Commercial real estate	$	10	$	—	$	33	$	43	$	12,621	$	12,664	$	19
Commercial and industrial	9		—		45		54		7,543		7,597		19
Commercial leases	2		—		3		5		678		683		—
Other	3		1		2		6		139		145		—
Total commercial loans and leases	24		1		83		108		20,981		21,089		38
Direct installment	7		1		5		13		2,687		2,700		—
Residential mortgages	39		7		12		58		7,401		7,459		—
Indirect installment	18		—		2		20		1,168		1,188		—
Consumer lines of credit	7		2		6		15		1,306		1,321		—
Total consumer loans	71		10		25		106		12,562		12,668		—
Total loans and leases	$	95	$	11	$	108	$	214	$	33,543	$	33,757	$	38

(in millions)	30-89 Days Past Due		> 90 Days Past Due and Still Accruing		Non- Accrual		Total Past Due		Current		Total Loans and Leases		Non-accrual with No ACL
December 31, 2023
Commercial real estate	$	21	$	—	$	42	$	63	$	12,242	$	12,305	$	18
Commercial and industrial	9		—		39		48		7,434		7,482		7
Commercial leases	2		—		3		5		594		599		—
Other	1		1		—		2		108		110		—
Total commercial loans and leases	33		1		84		118		20,378		20,496		25
Direct installment	7		1		5		13		2,728		2,741		—
Residential mortgages	38		7		10		55		6,585		6,640		—
Indirect installment	19		1		2		22		1,127		1,149		—
Consumer lines of credit	10		2		6		18		1,279		1,297		—
Total consumer loans	74		11		23		108		11,719		11,827		—
Total loans and leases	$	107	$	12	$	107	$	226	$	32,097	$	32,323	$	25

Following is a summary of non-performing assets:

TABLE 4.6

(dollars in millions)	June 30, 2024			December 31, 2023
Non-accrual loans	$	108		$	107
Total non-performing loans and leases	108			107
Other real estate owned	3			3
Total non-performing assets	$	111		$	110
Asset quality ratios:
Non-performing loans and leases / total loans and leases	0.32		%	0.33		%
Non-performing assets plus 90 days or more past due / total loans and leases plus OREO	0.36			0.38

The carrying value of residential-secured consumer OREO held as a result of obtaining physical possession upon completion of a foreclosure or through completion of a deed in lieu of foreclosure amounted to $1.2 million at both June 30, 2024 and December 31, 2023. The recorded investment of residential-secured consumer OREO for which formal foreclosure proceedings are in process at June 30, 2024 and December 31, 2023 totaled $12.9 million and $9.4 million, respectively.

Approximately $65.6 million of commercial loans are collateral dependent at June 30, 2024. Repayment is expected to be substantially made through the operation or sale of the collateral on the loan. These loans are primarily secured by business assets or commercial real estate.

Loan Modifications

During the period, there are loans whose contractual terms have been modified in a manner that grants a concession to a borrower experiencing financial difficulties. These modifications typically result from loss mitigation activities and could include a term extension, interest rate reduction, principal forgiveness and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of collateral. Accrued interest receivable on loan modifications totaled $0.05 million and $0.08 million at June 30, 2024 and June 30, 2023, respectively, and is excluded from the amortized cost of loan modifications in the tables that follow.

The following table shows the amortized cost basis at the end of the reporting period of the loans modified during the period to borrowers experiencing financial difficulty, disaggregated by class of financing receivable, type of concession granted and the financial effect of the modifications made to borrowers experiencing financial difficulty:

TABLE 4.7

(dollars in millions)	Amortized Cost Basis		% of Total Class of Financing Receivable		Financial Effect
Three Months Ended June 30, 2024
Term Extension
Direct installment	$	0.7	0.03	%	The modified loans had an average increase in term of 41 months extending the maturity date.
Residential mortgages	3.4		0.05		The modified loans had an average increase in term of 24 months extending the maturity date.
Consumer lines of credit	0.5		0.04		The modified loans had an average increase in term of 162 months extending the maturity date.
Total	4.6
Term Extension and Rate Reduction
Residential mortgages	0.2		—		Multiple modifications were made with no material financial effect.
Consumer lines of credit	0.2		0.02		Multiple modifications were made with no material financial effect.
Total	0.4
Other
Commercial real estate	0.1		—		3 to 9 month payment deferrals with no income being earned on these loans.
Total	0.1
Total Outstanding Modified	$	5.1

(dollars in millions)	Amortized Cost Basis		% of Total Class of Financing Receivable		Financial Effect
Six Months Ended June 30, 2024
Term Extension
Direct installment	$	0.8	0.03	%	The modified loans had an average increase in term of 61 months, extending the maturity date.
Residential mortgages	4.1		0.05		The modified loans had an average increase in term of 28 months, extending the maturity date.
Consumer lines of credit	1.0		0.08		The modified loans had an average increase in term of 208 months, extending the maturity date.
Total	5.9
Rate Reduction
Residential mortgages	0.1		—		The term was extended, with a weighted average yield reduction of 100 basis points.
Total	0.1
Term Extension and Rate Reduction
Commercial real estate	0.9		0.01		Multiple modifications were made with no material financial effect.
Residential mortgages	0.8		0.01		Multiple modifications were made with no material financial effect.
Consumer lines of credit	0.2		0.02		Multiple modifications were made with no material financial effect.
Total	1.9
Balloon Payment
Commercial real estate	0.6		—		Multiple modifications were made with no material financial effect.
Total	0.6
Other
Commercial real estate	4.2		0.03		3 to 12 month payment deferrals with no income being earned on these loans.
Commercial and industrial	0.6		0.01		Multiple modifications were made with no material financial effect.
Total	4.8
Total Outstanding Modified	$	13.3

(dollars in millions)	Amortized Cost Basis		% of Total Class of Financing Receivable		Financial Effect
Three Months Ended June 30, 2023
Term Extension
Commercial real estate	$	11.2	0.10	%	The modified loans had an average increase in term of 22 months, extending the maturity date.
Direct installment	0.3		0.01		The repayment on the loans modified were extended, lowering the monthly repayment.
Residential mortgages	1.5		0.02		The modified loans had an average increase in term of 138 months, extending the maturity date.
Total	13.0
Term Extension and Rate Reduction
Commercial and industrial	0.1		—		The term was extended, with a weighted average yield reduction of 487 basis points.
Direct installment	0.2		0.01		The modified loans had an average increase in term of 445 months, extending the maturity date.
Residential mortgages	0.4		0.01		The modified loans had an average increase in term of 151 months, extending the maturity date.
Consumer lines of credit	0.6		0.05		The term was extended, with a weighted average yield reduction of 326 basis points.
Total	1.3
Other
Consumer lines of credit	0.2		0.02		Multiple modifications were made with no material financial effect.
Total	0.2
Total Outstanding Modified	$	14.5

(dollars in millions)	Amortized Cost Basis		% of Total Class of Financing Receivable		Financial Effect
Six Months Ended June 30, 2023
Term Extension
Commercial real estate	$	11.5	0.10	%	The modified loans had an average increase in term of 22 months, extending the maturity date.
Commercial and industrial	2.3		0.03		The modified loans had an average increase in term of 12 months, extending the maturity date.
Direct installment	0.4		0.01		The repayment on the loans modified were extended, lowering the monthly repayment.
Residential mortgages	1.6		0.03		The modified loans had an average increase in term of 141 months, extending the maturity date.
Consumer lines of credit	0.2		0.02		The repayment on the loans modified was extended, lowering the monthly repayment.
Total	16.0
Term Extension and Rate Reduction
Commercial and industrial	0.2		—		The term was extended, with a weighted average yield reduction of 487 basis points.
Direct installment	0.3		0.01		The modified loans had an average increase in term of 363 months, extending the maturity date.
Residential mortgages	0.7		0.01		The term was extended, with a weighted average yield reduction of 278 basis points.
Consumer lines of credit	0.6		0.05		The term was extended, with a weighted average yield reduction of 326 basis points.
Total	1.8
Other
Commercial real estate	0.3		—		Multiple modifications were made with no material financial effect.
Residential mortgages	0.1		—		Multiple modifications were made with no material financial effect.
Consumer lines of credit	0.2		0.02		Multiple modifications were made with no material financial effect.
Total	0.6
Total Outstanding Modified	$	18.4

Some loan modifications may not ultimately result in the full collection of principal and interest, as modified, and may result in potential incremental losses which are factored into the ACL. There were no additional funds committed to borrowers whose loans were modified during the first six months of 2024.

Commercial loans over $1.0 million whose terms have been modified may be placed on non-accrual, individually analyzed and measured based on the fair value of the underlying collateral. Our ACL includes specific reserves for commercial loans modified. There were $0.5 million and $5.3 million in specific reserves for commercial loans modified at June 30, 2024 and December 31, 2023, respectively, and pooled reserves for individual loans of $1.9 million and $2.0 million for those same periods, respectively, based on loan segment LGD. Upon default, the amount of the recorded investment of the modified loan balance in excess of the fair value of the collateral, less estimated selling costs, is generally considered a confirmed loss and is charged-off against the ACL.

All other classes of loans whose terms have been modified are pooled and measured based on the loan segment LGD. Our ACL included pooled reserves for these classes of loans of $4.1 million and $3.8 million as of June 30, 2024 and December 31, 2023, respectively. Upon default of an individual loan, our charge-off policy is followed for that class of loan.

Following is a summary of loans modified in a manner that grants a concession to a borrower experiencing financial difficulties, by class, for which there was a payment default, excluding loans that have been paid off and/or sold. Default occurs when a loan is 90 days or more past due or in non-accrual and is within 12 months of restructuring.

TABLE 4.8

Amortized cost basis of modified financing receivables that subsequently defaulted:
(in millions)	Term Extension		Term Extension and Rate Reduction		Balloon Payment		Other		Total Outstanding Modified
Three Months Ended June 30, 2024
Commercial real estate	$	0.4	$	—	$	—	$	0.2	$	0.6
Commercial and industrial	—		—		—		0.9		0.9
Total commercial loans and leases	0.4		—		—		1.1		1.5
Residential mortgages	1.5		—		—		—		1.5
Total consumer loans	1.5		—		—		—		1.5
Total	$	1.9	$	—	$	—	$	1.1	$	3.0
Six Months Ended June 30, 2024
Commercial real estate	$	0.7	$	0.9	$	0.6	$	8.8	$	11.0
Commercial and industrial	20.3		0.2		—		1.6		22.1
Total commercial loans and leases	21.0		1.1		0.6		10.4		33.1
Residential mortgages	1.7		—		—		—		1.7
Total consumer loans	1.7		—		—		—		1.7
Total	$	22.7	$	1.1	$	0.6	$	10.4	$	34.8

(in millions)	Term Extension		Term Extension and Rate Reduction		Other		Total Outstanding Modified
Three Months Ended June 30, 2023
Commercial real estate	$	0.4	$	—	$	0.1	$	0.5
Commercial and industrial	—		0.1		—		0.1
Total commercial loans and leases	0.4		0.1		0.1		0.6
Total	$	0.4	$	0.1	$	0.1	$	0.6
Six Months Ended June 30, 2023
Commercial real estate	$	0.4	$	—	$	0.7	$	1.1
Commercial and industrial	1.5		0.2		—		1.7
Total commercial loans and leases	1.9		0.2		0.7		2.8
Residential mortgages	—		0.3		—		0.3
Consumer lines of credit	0.1		—		—		0.1
Total consumer loans	0.1		0.3		—		0.4
Total	$	2.0	$	0.5	$	0.7	$	3.2

We closely monitor the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of our modification efforts. The following table depicts the performance of loans that have been modified in the last 12 months:

TABLE 4.9

Payment status - amortization cost basis:
(in millions)	Current		30-89 Days Past Due		90+ Days Past Due
June 30, 2024
Commercial real estate	$	14.8	$	—	$	—
Commercial and industrial	18.5		—		—
Total commercial loans and leases	33.3		—		—
Direct installment	1.3		0.8		—
Residential mortgages	3.3		2.9		1.2
Consumer lines of credit	1.6		0.4		—
Total consumer loans	6.2		4.1		1.2
Total	$	39.5	$	4.1	$	1.2
(in millions)	Current		30-89 Days Past Due		90+ Days Past Due
June 30, 2023
Commercial real estate	$	11.9	$	—	$	—
Commercial and industrial	1.7		0.8		—
Total commercial loans and leases	13.6		0.8		—
Direct installment	0.6		0.1		—
Residential mortgages	1.8		0.5		—
Consumer lines of credit	1.0		—		—
Total consumer loans	3.4		0.6		—
Total	$	17.0	$	1.4	$	—

XML

ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES

ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES

The ACL is maintained for credit losses expected in the existing loan and lease portfolio and is presented as a reserve against loans and leases on the Consolidated Balance Sheets. Loan and lease losses are charged off against the ACL, with recoveries of amounts previously charged off credited to the ACL. Provisions for credit losses are charged to operations based on management’s periodic evaluation of the appropriate level of the ACL.

Following is a summary of changes in the ACL, by loan and lease class:

TABLE 5.1

(in millions)	Balance at Beginning of Period		Charge- Offs		Recoveries		Net (Charge- Offs) Recoveries		Provision for Credit Losses		Balance at End of Period
Three Months Ended June 30, 2024
Commercial real estate	$	161.9	$	(3.2)	$	0.8	$	(2.4)	$	(1.8)	$	157.7
Commercial and industrial	86.9		(4.7)		1.7		(3.0)		9.6		93.5
Commercial leases	22.4		—		0.1		0.1		0.4		22.9
Other	4.1		(1.0)		0.6		(0.4)		0.3		4.0
Total commercial loans and leases	275.3		(8.9)		3.2		(5.7)		8.5		278.1
Direct installment	30.6		(0.4)		0.2		(0.2)		0.5		30.9
Residential mortgages	79.3		(0.2)		0.1		(0.1)		9.0		88.2
Indirect installment	12.5		(2.5)		0.9		(1.6)		2.2		13.1
Consumer lines of credit	8.6		(0.3)		0.1		(0.2)		0.1		8.5
Total consumer loans	131.0		(3.4)		1.3		(2.1)		11.8		140.7
Total allowance for credit losses on loans and leases	406.3		(12.3)		4.5		(7.8)		20.3		418.8
Allowance for unfunded loan commitments	21.9		—		—		—		(0.1)		21.8
Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments	$	428.2	$	(12.3)	$	4.5	$	(7.8)	$	20.2	$	440.6
Six Months Ended June 30, 2024
Commercial real estate	$	166.6	$	(10.3)	$	1.2	$	(9.1)	$	0.2	$	157.7
Commercial and industrial	87.8		(8.6)		2.5		(6.1)		11.8		93.5
Commercial leases	21.2		(0.2)		0.1		(0.1)		1.8		22.9
Other	3.7		(1.9)		0.9		(1.0)		1.3		4.0
Total commercial loans and leases	279.3		(21.0)		4.7		(16.3)		15.1		278.1
Direct installment	33.8		(0.6)		0.4		(0.2)		(2.7)		30.9
Residential mortgages	70.5		(0.2)		0.1		(0.1)		17.8		88.2
Indirect installment	12.8		(5.4)		1.5		(3.9)		4.2		13.1
Consumer lines of credit	9.2		(0.6)		0.5		(0.1)		(0.6)		8.5
Total consumer loans	126.3		(6.8)		2.5		(4.3)		18.7		140.7
Total allowance for credit losses on loans and leases	405.6		(27.8)		7.2		(20.6)		33.8		418.8
Allowance for unfunded loan commitments	21.5		—		—		—		0.3		21.8
Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments	$	427.1	$	(27.8)	$	7.2	$	(20.6)	$	34.1	$	440.6

(in millions)	Balance at Beginning of Period		Charge- Offs		Recoveries		Net (Charge- Offs) Recoveries		Provision for Credit Losses		Balance at End of Period
Three Months Ended June 30, 2023
Commercial real estate	$	159.2	$	(1.8)	$	1.3	$	(0.5)	$	(4.5)	$	154.2
Commercial and industrial	101.7		(5.5)		0.7		(4.8)		17.4		114.3
Commercial leases	14.8		—		—		—		0.4		15.2
Other	4.0		(1.6)		0.2		(1.4)		1.2		3.8
Total commercial loans and leases	279.7		(8.9)		2.2		(6.7)		14.5		287.5
Direct installment	36.2		(0.1)		0.1		—		(0.6)		35.6
Residential mortgages	60.4		(0.2)		—		(0.2)		3.2		63.4
Indirect installment	16.6		(2.2)		0.5		(1.7)		1.7		16.6
Consumer lines of credit	10.5		(0.3)		0.2		(0.1)		(0.8)		9.6
Total consumer loans	123.7		(2.8)		0.8		(2.0)		3.5		125.2
Total allowance for credit losses on loans and leases	403.4		(11.7)		3.0		(8.7)		18.0		412.7
Allowance for unfunded loan commitments	20.5		—		—		—		0.5		21.0
Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments	$	423.9	$	(11.7)	$	3.0	$	(8.7)	$	18.5	$	433.7
Six Months Ended June 30, 2023
Commercial real estate	$	162.1	$	(8.3)	$	2.3	$	(6.0)	$	(1.9)	$	154.2
Commercial and industrial	102.1		(11.3)		1.6		(9.7)		21.9		114.3
Commercial leases	13.5		—		—		—		1.7		15.2
Other	4.0		(2.4)		0.5		(1.9)		1.7		3.8
Total commercial loans and leases	281.7		(22.0)		4.4		(17.6)		23.4		287.5
Direct installment	35.9		(0.4)		0.3		(0.1)		(0.2)		35.6
Residential mortgages	55.5		(0.6)		0.2		(0.4)		8.3		63.4
Indirect installment	17.3		(4.8)		1.1		(3.7)		3.0		16.6
Consumer lines of credit	11.3		(0.6)		0.5		(0.1)		(1.6)		9.6
Total consumer loans	120.0		(6.4)		2.1		(4.3)		9.5		125.2
Total allowance for credit losses on loans and leases	401.7		(28.4)		6.5		(21.9)		32.9		412.7
Allowance for unfunded loan commitments	21.4		—		—		—		(0.4)		21.0
Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments	$	423.1	$	(28.4)	$	6.5	$	(21.9)	$	32.5	$	433.7

Following is a summary of changes in the AULC by portfolio segment:

TABLE 5.2

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
(in millions)
Balance at beginning of period	$	21.9	$	20.5	$	21.5	$	21.4
Provision for unfunded loan commitments and letters of credit:
Commercial portfolio	(0.1)		0.5		0.4		(0.4)
Consumer portfolio	—		—		(0.1)		—
Balance at end of period	$	21.8	$	21.0	$	21.8	$	21.0

The model used to calculate the ACL is dependent on the portfolio composition and credit quality, as well as historical experience, current conditions and forecasts of economic conditions and interest rates. Specifically, the following considerations are incorporated into the ACL calculation:

•a third-party macroeconomic forecast scenario;

•a 24-month R&S forecast period for macroeconomic factors with a reversion to the historical mean on a straight-line basis over a 12-month period; and

•the historical through-the-cycle mean was calculated using an expanded period to include a prior recessionary period.

At June 30, 2024 and December 31, 2023, we utilized a third-party consensus macroeconomic forecast reflecting the current and projected macroeconomic environment. For our ACL calculation at June 30, 2024, the macroeconomic variables that we utilized included, but were not limited to: (i) the purchase only Housing Price Index, which increases 7.2% over our R&S forecast period, (ii) a Commercial Real Estate Price Index, which increases 5.9% over our R&S forecast period, (iii) S&P Volatility, which increases 12.3% in 2024 and decreases 0.8% in 2025 and (iv) personal and business bankruptcies, which increase steadily over the R&S forecast period but average below the historical through the cycle period. Macroeconomic variables that we utilized for our ACL calculation as of December 31, 2023 included, but were not limited to: (i) the purchase only Housing Price Index, which increases 5.3% over our R&S forecast period, (ii) a Commercial Real Estate Price Index, which increases 0.1% over our R&S forecast period, (iii) S&P Volatility, which decreases 4.0% in 2024 and 2.9% in 2025 and (iv) bankruptcies, which increase steadily over the R&S forecast period but average below the historical through the cycle period.

The ACL on loans and leases of $418.8 million at June 30, 2024 increased $13.2 million, or 3.3%, from December 31, 2023. Our ending ACL coverage ratio at June 30, 2024 was 1.24%, compared to 1.25% at December 31, 2023. Total provision for credit losses for the three months ended June 30, 2024 was $20.2 million compared to $18.5 million for the same period of 2023 which included a $13 million specific reserve established for a single $32 million commercial and industrial loan downgraded to non-performing status during the second quarter of 2023. The second quarter of 2024 reflected net charge-offs of $7.8 million, or 0.09% annualized of average total loans, compared to $8.7 million, or 0.11% annualized, in the second quarter of 2023. Total provision for credit losses for the six months ended June 30, 2024 was $34.1 million compared to $32.6 million for the same period of 2023. Net charge-offs were $20.6 million, or 0.13% annualized of average total loans, during the six months ended June 30, 2024, compared to $21.9 million, or 0.14% annualized, for the same period of 2023.

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LOAN SERVICING

6 Months Ended

Jun. 30, 2024

Transfers and Servicing [Abstract]

LOAN SERVICING

LOAN SERVICING

Mortgage Loan Servicing

We retain the servicing rights on certain mortgage loans sold. The unpaid principal balance of mortgage loans serviced for others is listed below:

TABLE 6.1

(in millions)	June 30, 2024		December 31, 2023
Mortgage loans sold with servicing retained	$	6,095	$	5,729

The following table summarizes activity relating to mortgage loans sold with servicing retained:

TABLE 6.2

	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2024		2023		2024		2023
Mortgage loans sold with servicing retained	$	306	$	261	$	622	$	459
Pre-tax net gains (losses) resulting from above loan sales (1)	5		1		11		1
Mortgage servicing fees (1)	3		4		7		7

(1) Recorded in mortgage banking operations on the Consolidated Statements of Income.

Following is a summary of activity relating to MSRs:

TABLE 6.3

	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2024		2023		2024		2023
Balance at beginning of period	$	62.5	$	54.3	$	59.5	$	52.8
Additions	3.9		2.7		7.8		5.2
Payoffs and curtailments	(0.8)		—		(1.3)		(0.3)
Impairment (charge) / recovery	—		—		0.2		—
Amortization / other	(0.5)		(1.3)		(1.1)		(2.0)
Balance at end of period	$	65.1	$	55.7	$	65.1	$	55.7
Fair value, beginning of period	$	75.2	$	67.8	$	71.8	$	68.6
Fair value, end of period	78.0		72.1		78.0		72.1

There was no valuation allowance for MSRs at June 30, 2024 and the valuation allowance for MSRs as of December 31, 2023 was $0.2 million.

The fair value of MSRs is highly sensitive to changes in assumptions and is determined by estimating the present value of the asset’s future cash flows utilizing market-based prepayment rates, discount rates and other assumptions validated through comparison to trade information, industry surveys and the use of independent third-party valuations. Changes in prepayment speed assumptions have the most significant impact on the fair value of MSRs. Generally, as interest rates decline, mortgage loan prepayments accelerate due to increased refinance activity, which results in a decrease in the fair value of MSRs and as interest rates increase, mortgage loan prepayments decline, which results in an increase in the fair value of MSRs. Measurement of fair value is limited to the conditions existing and the assumptions utilized as of a particular point in time, and those assumptions may not be appropriate if they are applied at a different point in time.

Following is a summary of the sensitivity of the fair value of MSRs to changes in key assumptions:

TABLE 6.4

(dollars in millions)	June 30, 2024			December 31, 2023
Weighted average life (months)	92			92
Constant prepayment rate (annualized)	8.1		%	7.9		%
Discount rate	10.2		%	10.2		%
Effect on fair value due to change in interest rates:
+2.00%	$	8		$	7
+1.00%	6			5
+0.50%	4			3
+0.25%	2			2
-0.25%	(2)			(2)
-0.50%	(5)			(4)
-1.00%	(10)			(8)
-2.00%	(19)			(21)
-3.00%	(36)			(42)

The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. Changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the changes in assumptions to fair value may not be linear. Also, in this table, the effects of an adverse variation in a particular assumption on the fair value of MSRs is calculated without changing any other assumptions, while, in reality, changes in one factor may result in changing another, which may magnify or contract the effect of the change.

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LEASES

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

LEASES

LEASES

We have operating leases primarily for certain branches, office space, land and office equipment. We have finance leases for certain branches. Our operating leases expire at various dates through the year 2046 and generally include one or more options to renew. Our finance leases expire at various dates through the year 2051 and generally include one or more options to renew. The exercise of lease renewal options is at our sole discretion. As of June 30, 2024, we had operating lease right-of-use assets and operating lease liabilities of $199.3 million and $240.4 million, respectively. We have finance lease right-of-use assets and finance lease liabilities of $34.6 million and $36.2 million, respectively.

Our operating lease agreements do not contain any material residual value guarantees or material restrictive covenants. As of June 30, 2024, we have certain operating lease agreements, primarily for administrative office space, that have not yet commenced. At commencement, it is expected that these leases will add approximately $8.0 million in right-of-use assets and $8.3 million in other liabilities. These operating leases are currently expected to commence in 2024 and 2025 with lease terms of up to 20 years. These operating leases include the lease, with a related party, of the future new FNB headquarters building in Pittsburgh, Pennsylvania. Beginning in 2023, several floors of the FNB headquarters building have been made available to FNB for the purpose of constructing our office spaces, and we commenced the lease of those floors. The related party operating lease is accounted for in a manner consistent with all other leases on the basis of the legally enforceable terms and conditions of the lease and the related party represents a VIE for which we are not the primary beneficiary.

The components of lease expense were as follows:

TABLE 7.1

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in millions)	2024		2023		2024		2023
Operating lease cost	$	9	$	8	$	19	$	16
Variable lease cost	2		1		3		2
Finance lease cost	1		1		2		2
Total lease cost	$	12	$	10	$	24	$	20

Other information related to leases is as follows:

TABLE 7.2

	Six Months Ended June 30,
(dollars in millions)	2024			2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	15		$	7
Operating cash flows from finance leases	$	1		$	—
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	25		$	—
Finance leases	$	4		$	—
Weighted average remaining lease term (years):
Operating leases	11.00			9.11
Finance leases	19.00			19.97
Weighted average discount rate:
Operating leases	3.8		%	2.7		%
Finance leases	3.4		%	3.1		%

Future cash flows of lease liabilities are as follows:

TABLE 7.3

(in millions)	Operating Leases		Finance Leases		Total Leases
June 30, 2024
0 - 12 months	$	35	$	2	$	37
13 - 24 months	30		2		32
25 - 36 months	27		2		29
37 - 48 months	25		3		28
49 - 60 months	23		3		26
Later years	164		37		201
Total lease payments	304		49		353
Less: imputed interest	(64)		(13)		(77)
Present value of lease liabilities	$	240	$	36	$	276

As a lessor we offer commercial leasing services to customers in need of new or used equipment primarily within our market areas of Pennsylvania, Ohio, Maryland, North Carolina, South Carolina and West Virginia. Additional information relating to commercial leasing is provided in Note 4, “Loans and Leases” in the Notes to Consolidated Financial Statements.

LEASES

LEASES

We have operating leases primarily for certain branches, office space, land and office equipment. We have finance leases for certain branches. Our operating leases expire at various dates through the year 2046 and generally include one or more options to renew. Our finance leases expire at various dates through the year 2051 and generally include one or more options to renew. The exercise of lease renewal options is at our sole discretion. As of June 30, 2024, we had operating lease right-of-use assets and operating lease liabilities of $199.3 million and $240.4 million, respectively. We have finance lease right-of-use assets and finance lease liabilities of $34.6 million and $36.2 million, respectively.

Our operating lease agreements do not contain any material residual value guarantees or material restrictive covenants. As of June 30, 2024, we have certain operating lease agreements, primarily for administrative office space, that have not yet commenced. At commencement, it is expected that these leases will add approximately $8.0 million in right-of-use assets and $8.3 million in other liabilities. These operating leases are currently expected to commence in 2024 and 2025 with lease terms of up to 20 years. These operating leases include the lease, with a related party, of the future new FNB headquarters building in Pittsburgh, Pennsylvania. Beginning in 2023, several floors of the FNB headquarters building have been made available to FNB for the purpose of constructing our office spaces, and we commenced the lease of those floors. The related party operating lease is accounted for in a manner consistent with all other leases on the basis of the legally enforceable terms and conditions of the lease and the related party represents a VIE for which we are not the primary beneficiary.

The components of lease expense were as follows:

TABLE 7.1

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in millions)	2024		2023		2024		2023
Operating lease cost	$	9	$	8	$	19	$	16
Variable lease cost	2		1		3		2
Finance lease cost	1		1		2		2
Total lease cost	$	12	$	10	$	24	$	20

Other information related to leases is as follows:

TABLE 7.2

	Six Months Ended June 30,
(dollars in millions)	2024			2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	15		$	7
Operating cash flows from finance leases	$	1		$	—
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	25		$	—
Finance leases	$	4		$	—
Weighted average remaining lease term (years):
Operating leases	11.00			9.11
Finance leases	19.00			19.97
Weighted average discount rate:
Operating leases	3.8		%	2.7		%
Finance leases	3.4		%	3.1		%

Future cash flows of lease liabilities are as follows:

TABLE 7.3

(in millions)	Operating Leases		Finance Leases		Total Leases
June 30, 2024
0 - 12 months	$	35	$	2	$	37
13 - 24 months	30		2		32
25 - 36 months	27		2		29
37 - 48 months	25		3		28
49 - 60 months	23		3		26
Later years	164		37		201
Total lease payments	304		49		353
Less: imputed interest	(64)		(13)		(77)
Present value of lease liabilities	$	240	$	36	$	276

As a lessor we offer commercial leasing services to customers in need of new or used equipment primarily within our market areas of Pennsylvania, Ohio, Maryland, North Carolina, South Carolina and West Virginia. Additional information relating to commercial leasing is provided in Note 4, “Loans and Leases” in the Notes to Consolidated Financial Statements.

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VARIABLE INTEREST ENTITIES

6 Months Ended

Jun. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES

We evaluate our interest in certain entities to determine if these entities meet the definition of a VIE and whether we are the primary beneficiary and required to consolidate the entity based on the variable interest we held both at inception and when there is a change in circumstances that requires a reconsideration.

Unconsolidated VIEs

The following table provides a summary of the assets and liabilities included in our Consolidated Financial Statements, as well as the maximum exposure to losses, associated with our interests related to VIEs for which we hold an interest, but are not the primary beneficiary.

TABLE 8.1

(in millions)	Total Assets		Total Liabilities		Maximum Exposure to Loss
June 30, 2024
Trust preferred securities (1)	$	3	$	73	$	—
Tax credit partnerships	174		81		174
Other investments	28		—		28
Total	$	205	$	154	$	202
December 31, 2023
Trust preferred securities (1)	$	3	$	73	$	—
Tax credit partnerships	143		62		143
Other investments	40		6		40
Total	$	186	$	141	$	183
(1) Represents our investment in unconsolidated subsidiaries.

Trust-Preferred Securities

We have certain wholly-owned trusts whose assets, liabilities, equity, income and expenses are not included within our Consolidated Financial Statements. These trusts have been formed for the sole purpose of issuing TPS, from which the proceeds are then invested in our junior subordinated debentures, which are reflected in our Consolidated Balance Sheets as junior subordinated debt. The TPS are the obligations of the trusts, and as such, are not consolidated within our Consolidated Financial Statements. For additional information relating to our TPS, see Note 9, “Borrowings” in the Notes to Consolidated Financial Statements.

Each issue of the junior subordinated debentures has an interest rate equal to the corresponding TPS distribution rate. We have the right to defer payment of interest on the debentures at any time, or from time-to-time for a period not exceeding five years provided that no extension period may extend beyond the stated maturity of the related debentures. During any such extension period, distributions to the TPS will also be deferred and our ability to pay dividends on our common stock will be restricted. Periodic cash payments and payments upon liquidation or redemption with respect to TPS are guaranteed by us to the extent of funds held by the trusts. The guarantee ranks subordinate and junior in right of payment to all our indebtedness to the same extent as the junior subordinated debt. The guarantee does not place a limitation on the amount of additional indebtedness that may be incurred by us.

Affordable Housing, Historic and New Market Tax Credit Partnerships

We make equity investments as a limited partner in various partnerships of affordable housing (LIHTC), historic tax credit (HTC) and new market tax credit (NMTC) programs pursuant to Sections 42, 47 and 45d of the Internal Revenue Code, respectively. The purpose of many of these investments is to support initiatives associated with the Community Reinvestment Act while earning a satisfactory return. The activities of the LIHTC partnerships include the development and operation of multi-family housing that is leased to qualifying residential tenants. HTC partnerships allow us to make investments in projects that involve the rehabilitation of historic structures, often combining our investments with bank financing. NMTC partnerships are designed to channel investments into distressed communities, fostering community development and stimulating economic growth. These tax credit partnerships are generally located in communities where we have a banking presence and meet the definition of a VIE; however, we are not the primary beneficiary of the entities, as the general partner or managing member has both the power to direct the activities that most significantly impact the economic performance of the entities and the obligation to absorb losses beyond our own equity investment.

We apply the proportional amortization method of accounting for our investments in LIHTC partnerships. Effective January 1, 2024, upon the adoption of ASU 2023-02, Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, we also began applying the proportional amortization method of accounting to our investments in HTC and NMTC partnerships. The proportional amortization method recognizes the amortized cost of the investments in these tax credit partnerships as a component of income tax expense on the Consolidated Statements of Income. Prior to the adoption of ASU 2023-02, we applied the equity method of accounting to the investments in HTC and NMTC partnerships. The adoption of ASU 2023-02 did not have a material impact on our consolidated financial statements. We record our investment in tax credit partnerships as a component of other assets.

The following table presents the balances of our LIHTC, HTC and NMTC investments and related unfunded commitments:

TABLE 8.2

(in millions)	June 30, 2024		December 31, 2023
Tax credit investments included in other assets	$	93	$	81
Unfunded tax credit investments	81		62

In the first quarter of 2024, we adopted ASU 2023-02, resulting in the amortization of HTC and NMTC investments being recognized in the provision for income taxes as of the adoption of this standard. These activities were previously recognized in non-interest expense.

The following table summarizes the impact of these tax credit investments on the provision for income taxes in our Consolidated Statements of Income:

TABLE 8.3

	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2024		2023		2024		2023
Provision for income taxes:
Amortization of tax credit investments under proportional method	$	6	$	4	$	11	$	8
Tax credits from tax credit investments	(6)		(4)		(11)		(8)
Other tax benefits related to tax credit investments	(1)		—		(2)		(1)
Total impact on provision for income taxes	$	(1)	$	—	$	(2)	$	(1)

Other Investments

Other investments we also consider to be unconsolidated VIEs include investments in Small Business Investment Companies and other equity method investments.

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BORROWINGS

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

BORROWINGS

BORROWINGS

Following is a summary of short-term borrowings:

TABLE 9.1

(in millions)	June 30, 2024		December 31, 2023
Securities sold under repurchase agreements	$	201	$	233
Federal Home Loan Bank advances	2,990		1,900
Federal funds purchased	298		260
Subordinated notes	127		113
Total short-term borrowings	$	3,616	$	2,506

Borrowings with original maturities of one year or less are classified as short-term. Securities sold under repurchase agreements are comprised of customer repurchase agreements, which are sweep accounts with next-day maturities utilized by larger commercial customers to earn interest on their funds. Securities are pledged to these customers in an amount at least equal to the outstanding balance. Of the total short-term FHLB advances, $840.0 million, or 28.1%, had overnight maturities as of June 30, 2024. We had $450.0 million, or 23.7%, of short-term FHLB advances with overnight maturities as of December 31, 2023. At June 30, 2024, $200.0 million, or 6.7%, of the short-term FHLB advances were swapped to fixed rates with various maturities through 2024. This compares to $400.0 million, or 21.1%, as of December 31, 2023. Federal funds purchased are overnight funds borrowed from other financial institutions. Subordinated notes are unsecured and subordinated to our other indebtedness. The short-term subordinated notes mature within one year.

Following is a summary of long-term borrowings:

TABLE 9.2

(in millions)	June 30, 2024		December 31, 2023
Federal Home Loan Bank advances	$	1,250	$	1,200
Senior notes	349		349
Subordinated notes	77		82
Junior subordinated debt	73		73
Other subordinated debt	267		267
Total long-term borrowings	$	2,016	$	1,971

Our banking affiliate has available credit with the FHLB of $11.6 billion, of which $4.2 billion was utilized and included in short-term and long-term borrowings and $450.0 million was utilized for a letter of credit for pledging of public funds as of June 30, 2024. These advances are secured by loans collateralized by residential mortgages, home equity lines of credit, commercial real estate and FHLB stock. The short-term borrowings are scheduled to mature in various amounts periodically during 2024 while the long-term borrowings are scheduled to mature periodically through 2027. Effective interest rates paid on fixed rate long-term FHLB advances ranged from 4.23% to 4.88% for both the three months ended June 30, 2024 and for the year ended December 31, 2023. The effective interest rate paid on variable rate long-term FHLB advances was Overnight SOFR plus an average spread of 33.1 basis points for the three months ended June 30, 2024. There were no variable rate advances for the year ended December 31, 2023.

The following table provides information relating to our senior notes and other subordinated debt as of June 30, 2024. The subordinated notes are eligible for treatment as tier 2 capital for regulatory capital purposes.

TABLE 9.3

(dollars in millions)	Aggregate Principal Amount Issued		Net Proceeds (5)		Carrying Value		Stated Maturity Date	Interest Rate
Senior Notes:
5.150% Senior Notes due August 25, 2025	$	350	$	347	$	349	8/25/2025	5.150	%
Total senior notes	350		347		349
Other Subordinated Debt:
7.984% Fixed-To-Floating Rate Subordinated Notes due 2029 (1)	120		118		119		2/14/2029	7.984	%
4.875% Subordinated Notes due 2025	100		98		100		10/2/2025	4.875	%
8.620% Fixed-To-Floating Rate Subordinated Notes due December 6, 2028 (2) (4)	25		26		24		12/6/2028	8.620	%
5.000% Fixed-To-Floating Rate Subordinated Note due May 29, 2030 (3) (4)	25		24		24		5/29/2030	5.000	%
Total other subordinated debt	270		266		267
Total	$	620	$	613	$	616

(1) Floating rate effective February 14, 2024, determined by the Benchmark Replacement (three-month CME term SOFR plus a tenor spread adjustment of 26 basis points) plus 240 basis points.

(2) Floating rate effective December 6, 2023, determined by the Benchmark Replacement (three-month CME term SOFR plus a tenor spread adjustment of 26 basis points) plus 302 basis points.

(3) Fixed rate until May 29, 2025, at which time it converts to a floating rate determined by three-month SOFR plus 464 basis points.

(4) Assumed from an acquisition and adjusted to fair value at the time of acquisition.

(5) After deducting underwriting discounts and commissions and offering costs. For the debt assumed from acquisitions, this is the fair value of the debt at the time of the acquisition.

The junior subordinated debt is comprised of the debt securities issued by FNB, or companies we acquired, in relation to our four unconsolidated subsidiary trusts (collectively, the Trusts), which are unconsolidated VIEs, and are included on the Consolidated Balance Sheets in long-term borrowings. Since third-party investors are the primary beneficiaries, the Trusts are

not consolidated in our Financial Statements. We record the distributions on the junior subordinated debt issued to the Trusts as interest expense.

The following table provides information relating to the Trusts as of June 30, 2024:

TABLE 9.4

(dollars in millions)	Trust Preferred Securities		Common Securities		Junior Subordinated Debt		Stated Maturity Date	Interest Rate		Rate Reset Factor
F.N.B. Statutory Trust II	$	22	$	1	$	22	6/15/2036	7.25	%	SOFR + 165 bps
Yadkin Valley Statutory Trust I	25		1		23		12/15/2037	6.92	%	SOFR + 132 bps
FNB Financial Services Capital Trust I	25		1		23		9/30/2035	7.05	%	SOFR + 146 bps
Patapsco Statutory Trust I	5		—		5		12/15/2035	7.08	%	SOFR + 148 bps
Total	$	77	$	3	$	73

The SOFR rate used for the rate reset factors in the above table is the Benchmark Replacement (three-month CME term SOFR plus a tenor spread adjustment of 26 basis points).

Other Credit Availability

Our banking affiliate has additional unused other wholesale credit availability of $7.9 billion as of June 30, 2024.

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

6 Months Ended

Jun. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

We are exposed to certain risks arising from both our business operations and economic conditions. We principally manage our exposures to a wide variety of business and operational risks through management of our core business activities. We manage economic risks, including interest rate risk, primarily by managing the amount, source, and duration of our assets and liabilities, and through the use of derivative instruments. Derivative instruments are used to reduce the effects that changes in interest rates may have on net income and cash flows. We also use derivative instruments to facilitate transactions on behalf of our customers.

All derivatives are carried on the Consolidated Balance Sheets at fair value and do not take into account the effects of master netting arrangements we have with other financial institutions. Credit risk is included in the determination of the estimated fair value of derivatives. Derivative assets are reported in the Consolidated Balance Sheets in other assets and derivative liabilities are reported in other liabilities. Cash flow activity relating to derivative assets and derivative liabilities is reported in the other, net line in operating activities on the Consolidated Statements of Cash Flows. Changes in fair value are recognized in earnings except for certain changes related to derivative instruments designated as part of a cash flow hedging relationship, which are recognized in other comprehensive income.

The following table presents notional amounts and gross fair values of our derivative assets and derivative liabilities which are not offset in the Consolidated Balance Sheets:

TABLE 10.1

	June 30, 2024						December 31, 2023
	Notional		Fair Value				Notional		Fair Value
(in millions)	Amount		Asset		Liability		Amount		Asset		Liability
Gross Derivatives
Subject to master netting arrangements:
Interest rate contracts – designated	$	1,600	$	—	$	3	$	1,800	$	1	$	—
Interest rate swaps – not designated	5,806		104		16		5,660		74		35
Total subject to master netting arrangements	7,406		104		19		7,460		75		35
Not subject to master netting arrangements:
Interest rate swaps – not designated	5,806		16		336		5,660		35		289
Interest rate lock commitments – not designated	323		3		—		239		5		—
Forward delivery commitments – not designated	366		1		1		294		1		4
Credit risk contracts – not designated	762		—		—		629		—		—
Total not subject to master netting arrangements	7,257		20		337		6,822		41		293
Total	$	14,663	$	124	$	356	$	14,282	$	116	$	328

Certain derivative exchanges have enacted a rule change which in effect results in the legal characterization of variation margin payments for certain derivative contracts as settlement of the derivatives mark-to-market exposure and not collateral. Accordingly, we have changed our reporting of certain derivatives to record variation margin on trades cleared through these exchanges as settled.  The daily settlement of the derivative exposure does not change or reset the contractual terms of the instrument.

We adopted Reference Rate Reform (RRR) on October 1, 2020, and the guidance will be followed until the Update terminates on December 31, 2024. As of October 16, 2020, we changed our valuation methodology to reflect changes made by central clearinghouses that changed the discounting methodology and interest calculation of cash migration from overnight index swap (OIS) to SOFR for U.S. dollar cleared interest rate swaps to better reflect prices obtainable in the markets in which we transact. Certain of these valuation methodology changes were applied to eligible hedging relationships. Accordingly, we have updated our hedge documentation to reflect the election of certain expedients and exceptions related to our cash flow hedging programs. The change in valuation methodology was applied prospectively as a change in accounting estimate and did not have a material impact on our consolidated financial position or results of operations.

Derivatives Designated as Hedging Instruments under GAAP

Interest Rate Contracts. We entered into interest rate derivative agreements to modify the interest rate characteristics of certain commercial loans and certain of our FHLB advances from variable rate to fixed rate in order to reduce the impact of changes in future cash flows due to market interest rate changes. These agreements are designated as cash flow hedges, in the form of interest rate swaps and collars, hedging the exposure to variability in expected future cash flows. The derivative’s gain or loss, including any ineffectiveness, is initially reported as a component of other comprehensive income and subsequently reclassified into earnings in the same line item associated with the forecasted transaction when the forecasted transaction affects earnings.

The following table shows amounts reclassified from AOCI:

TABLE 10.2

	Amount of Gain (Loss) Recognized in OCI on Derivatives				Location of Gain (Loss) Reclassified from AOCI into Income	Amount of Gain (Loss) Reclassified from AOCI into Income
	Six Months Ended June 30,					Six Months Ended June 30,
(in millions)	2024		2023			2024		2023
Derivatives in cash flow hedging relationships:
Interest rate contracts	$	(15)	$	(13)	Interest income (expense)	$	(19)	$	(9)
					Other income	—		—

The following table represents gains (losses) recognized in the Consolidated Statements of Income on cash flow hedging relationships:

TABLE 10.3

	Six months ended June 30,
	2024				2023
(in millions)	Interest Income - Loans and Leases		Interest Expense - Short-Term Borrowings		Interest Income - Loans and Leases		Interest Expense - Short-Term Borrowings
Total amounts of income and expense line items presented in the Consolidated Statements of Income (the effects of cash flow hedges are included in these line items)	$	975	$	60	$	823	$	32
The effects of cash flow hedging:
Gain (loss) on cash flow hedging relationships:
Interest rate contracts:
Amount of gain (loss) reclassified from AOCI into net income	(25)		6		(21)		12

As of June 30, 2024, the maximum length of time over which forecasted interest cash flows are hedged is 1.8 years. In the twelve months that follow June 30, 2024, we expect to reclassify from the amount currently reported in AOCI net derivative losses of $35.9 million ($27.8 million net of tax), in association with interest on the hedged loans and FHLB advances. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, and the addition of other hedges subsequent to June 30, 2024.

There were no components of derivative gains or losses excluded from the assessment of hedge effectiveness related to these cash flow hedges. Also, during the six months ended June 30, 2024 and 2023, there were no gains or losses from cash flow hedge derivatives reclassified to earnings because it became probable that the original forecasted transactions would not occur.

Derivatives Not Designated as Hedging Instruments under GAAP

A description of interest rate swaps, interest rate lock commitments, forward delivery commitments and credit risk contracts can be found in Note 16, "Derivative Instruments and Hedging Activities" in the Consolidated Financial Statements included in our 2023 Annual Report on Form 10-K filed with the SEC on February 26, 2024.

Interest rate swap agreements with loan customers and with the offsetting counterparties are reported at fair value in other assets and other liabilities on the Consolidated Balance Sheets with any resulting gain or loss recorded in current period earnings as other income or other expense.

Risk participation agreements sold with notional amounts totaling $603.9 million as of June 30, 2024 have remaining terms ranging from one month to seventeen years. Under these agreements, our maximum exposure assuming a customer defaults on their obligation to perform under certain derivative swap contracts with third parties would be $0.1 million at both June 30,

2024 and December 31, 2023. The fair values of risk participation agreements purchased and sold were $0.1 million and $0.1 million, respectively, at June 30, 2024 and $0.2 million and $0.1 million, respectively at December 31, 2023.

The following table presents the effect of certain derivative financial instruments on the Consolidated Statements of Income:

TABLE 10.4

		Six Months Ended June 30,
(in millions)	Consolidated Statements of Income Location	2024		2023
Interest rate swaps	Non-interest income - other	$	—	$	—
Interest rate lock commitments	Mortgage banking operations	—		—
Forward delivery contracts	Mortgage banking operations	4		3
Credit risk contracts	Non-interest income - other	—		—

Counterparty Credit Risk

We are party to master netting arrangements with most of our swap derivative dealer counterparties. Collateral, usually marketable securities and/or cash, is exchanged between FNB and our counterparties, and is generally subject to thresholds and transfer minimums. For swap transactions that require central clearing, we post cash and securities to our clearing agency. Collateral positions are settled or valued daily, and adjustments to amounts received and pledged by us are made as appropriate to maintain proper collateralization for these transactions.

Certain master netting agreements contain provisions that, if violated, could cause the counterparties to request immediate settlement or demand full collateralization under the derivative instrument. If we had breached our agreements with our derivative counterparties we would be required to settle our obligations under the agreements at the termination value and would be required to pay nothing as of June 30, 2024 or December 31, 2023, in excess of amounts previously posted as collateral with the respective counterparty.

The following table presents a reconciliation of the net amounts of derivative assets and derivative liabilities presented in the Consolidated Balance Sheets to the net amounts that would result in the event of offset:

TABLE 10.5

			Amount Not Offset in the Consolidated Balance Sheets
(in millions)	Net Amount Presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral		Net Amount
June 30, 2024
Derivative Assets
Interest rate contracts:
Not designated	$	104	$	—	$	103	$	1
Total	$	104	$	—	$	103	$	1

Derivative Liabilities
Interest rate contracts:
Designated	$	3	$	—	$	3	$	—
Not designated	16		—		16		—
Total	$	19	$	—	$	19	$	—

December 31, 2023
Derivative Assets
Interest rate contracts:
Designated	$	1	$	—	$	1	$	—
Not designated	74		—		74		—
Total	$	75	$	—	$	75	$	—

Derivative Liabilities
Interest rate contracts:
Not designated	$	35	$	—	$	35	$	—
Total	$	35	$	—	$	35	$	—

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COMMITMENTS, CREDIT RISK AND CONTINGENCIES

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS, CREDIT RISK AND CONTINGENCIES

COMMITMENTS, CREDIT RISK AND CONTINGENCIES

We have commitments to extend credit and standby letters of credit that involve certain elements of credit risk in excess of the amount stated in the Consolidated Balance Sheets. Our exposure to credit loss in the event of non-performance by the customer is represented by the contractual amount of those instruments. The credit risk associated with commitments to extend credit and standby letters of credit is essentially the same as that involved in extending loans and leases to customers and is subject to normal credit policies. Since many of these commitments expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements.

Following is a summary of off-balance sheet credit risk information:

TABLE 11.1

(in millions)	June 30, 2024		December 31, 2023
Commitments to extend credit	$	14,103	$	13,656
Standby letters of credit	253		257

At June 30, 2024, funding of 76.8% of the commitments to extend credit was dependent on the financial condition of the customer. We have the ability to withdraw such commitments at our discretion. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Based on management’s credit evaluation of the customer, collateral may be deemed necessary. Collateral requirements vary and may include accounts receivable, inventory, property, plant and equipment and income-producing commercial properties.

Standby letters of credit are conditional commitments issued by us that may require payment at a future date. The credit risk involved in issuing letters of credit is actively monitored through review of the historical performance of our portfolios.

Our AULC for commitments that are not unconditionally cancellable, which is included in other liabilities on the Consolidated Balance Sheets, was $21.8 million at June 30, 2024 and $21.5 million at December 31, 2023. Additional information relating to the AULC is provided in Note 5, "Allowance for Credit Losses on Loans and Leases" in the Notes to Consolidated Financial Statements.

In addition to the above commitments, subordinated notes issued by FNB Financial Services, LP, a wholly-owned finance subsidiary, are fully and unconditionally guaranteed by FNB. These subordinated notes are included in the summaries of short-term borrowings and long-term borrowings in Note 9, “Borrowings” in the Notes to Consolidated Financial Statements.

Other Legal Proceedings

In the ordinary course of business, we may assert claims in legal proceedings against another party or parties, and likewise may be named as defendants in, or made parties to, pending and potential legal actions. Also, as regulated entities, we are subject to governmental and regulatory examinations, information-gathering requests, and may be subject to investigations and proceedings (both formal and informal). Such asserted or threatened claims, litigation, investigations, inquiries, regulatory and administrative proceedings typically entail matters that are considered incidental to the normal conduct of business. Claims for significant monetary damages may be asserted in many of these types of legal actions, while claims for disgorgement, reimbursement, restitution, penalties and/or other remedial actions or sanctions may be sought in regulatory matters. In these instances, if we determine that we have meritorious defenses, we will engage in an aggressive defense. However, if management determines, in consultation with counsel, that settlement of a matter is in the best interest of FNB and our shareholders, we may do so. It is inherently difficult to predict the eventual outcomes of such matters given their complexity and the particular facts and circumstances at issue in each of these matters. However, on the basis of our current knowledge and understanding, and advice of counsel, we do not believe that judgments, sanctions, settlement resolutions, regulatory actions, investigations, inquiries, settlements or orders, if any, that have arisen or may arise from these matters (either individually or in the aggregate, after giving effect to applicable reserves and insurance coverage) will have a material adverse effect on our financial position or liquidity, although they could potentially have a material effect on net income in a given period.

In view of the inherent unpredictability of outcomes in litigation and governmental and regulatory matters, particularly where (i) the damages sought are indeterminate, (ii) the proceedings are in the early stages, or (iii) the matters involve novel legal theories or a large number of parties, as a matter of course, there is considerable uncertainty surrounding the timing or ultimate resolution of litigation and governmental and regulatory matters, including a possible eventual loss, financial or other commitments, fine, restitution, penalty, business or adverse reputational impact, if any, associated with each such matter. In accordance with applicable accounting guidance, we establish accruals for litigation and governmental and regulatory matters when those matters proceed to a stage where they present loss contingencies that are both probable and reasonably estimable. In such cases, there may be a possible exposure to loss in excess of any amounts accrued. We will continue to monitor such matters, including ongoing reviews, examinations, and investigations by banking regulatory agencies and other government authorities, for developments that could affect the amount of the accrual, and will adjust the accrual amount as appropriate. If the loss contingency in question is not both probable and reasonably estimable, we do not establish an accrual and the matter will continue to be monitored for any developments that would make the loss contingency both probable and reasonably

estimable. We believe that our accruals for legal proceedings are appropriate and, in the aggregate, are not material to our consolidated financial position, although future accruals could have a material effect on net income in a given period.

On February 5, 2024, we announced that Yadkin Bank and its successor by merger, FNBPA, reached a settlement with the DOJ and the State of North Carolina to resolve their fair lending concerns, which FNBPA disputes, related to the assessment of mortgage lending activities during a four-year period in the Winston-Salem and Charlotte, North Carolina markets that began prior to Yadkin’s merger with FNBPA in March 2017. The settlement includes FNBPA's commitment to provide $11.75 million in subsidies on mortgages and home equity loans originated in the Charlotte and Winston-Salem, North Carolina markets beginning in 2024, continuing until the full amount has been deployed. This subsidy amount is part of our existing, previously announced commitment to underserved communities, including the Winston-Salem and Charlotte markets. The settlement was not initiated through a referral by a federal bank regulatory agency or consumer complaint, and included no civil money penalties levied against FNBPA.

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STOCK INCENTIVE PLANS

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

STOCK INCENTIVE PLANS

STOCK INCENTIVE PLANS

Restricted Stock

We issue restricted stock awards to key employees under our Incentive Compensation Plan (Plan). We issue time-based awards and performance-based awards under this Plan, both of which are based on a three-year vesting period. The grant date fair value of the time-based awards is equal to the price of our common stock on the grant date. The fair value of the performance-based awards is based on a Monte-Carlo simulation valuation of our common stock as of the grant date. The assumptions used for this valuation include stock price volatility, risk-free interest rate and dividend yield. We granted 1,249,783 and 1,354,017 restricted stock units during the six months ended June 30, 2024 and 2023, respectively, including 331,182 and 282,106 performance-based restricted stock units during those same periods, respectively. We have shareholder approval under the Plan to issue up to 14,000,000 shares of common stock, including 8,000,000 shares registered during the second quarter of 2024. As of June 30, 2024, we had 9,106,891 remaining shares available for awards under the Plan.

The unvested restricted stock unit awards are eligible to receive cash dividends or dividend equivalents which are ultimately used to purchase additional shares of stock and are subject to forfeiture if the requisite service period is not completed or the specified performance criteria are not met. These awards are subject to certain accelerated vesting provisions upon retirement, death, disability or in the event of a change in control as defined in the award agreements.

The following table summarizes the activity relating to restricted stock units during the periods indicated:

TABLE 12.1

	Six Months Ended June 30,
	2024			2023
	Units	Weighted Average Grant Price per Share		Units	Weighted Average Grant Price per Share
Unvested units outstanding at beginning of period	3,502,598	$	12.89	4,821,182	$	10.30
Granted	1,249,783	14.04		1,354,017	12.74
Net adjustment	341,857	—		306,917	8.43
Vested	(1,499,097)	12.76		(2,303,266)	7.99
Forfeited/expired/canceled	(27,777)	12.25		(578,493)	8.13
Dividend reinvestment	—	—		74,505	12.16
Unvested units outstanding at end of period	3,567,364	13.36		3,674,862	12.87

The following table provides certain information related to restricted stock units:

TABLE 12.2

(in millions)	Six Months Ended June 30,
	2024		2023
Stock-based compensation expense	$	12	$	13
Tax benefit related to stock-based compensation expense	3		3
Fair value of units vested	19		30

As of June 30, 2024, there was $15.6 million of unrecognized compensation cost related to unvested restricted stock units.

The components of the restricted stock units as of June 30, 2024 are as follows:

TABLE 12.3

(dollars in millions)	Service- Based Units		Performance- Based Units		Total
Unvested restricted stock units	2,614,032		953,332		3,567,364
Unrecognized compensation expense	$	15	$	1	$	16
Intrinsic value	$	36	$	13	$	49
Weighted average remaining life (in years)	1.96		1.72		1.89

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INCOME TAXES

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

Income Tax Expense

Federal and state income tax expense and the statutory tax rate and the actual effective tax rate consist of the following:

TABLE 13.1

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in millions)	2024			2023			2024			2023
Current income taxes:
Federal taxes	$	30		$	36		$	47		$	67
State taxes	2			3			4			5
Total current income taxes	32			39			51			72
Deferred income taxes:
Federal taxes	1			(3)			14			(1)
State taxes	1			1			3			1
Total deferred income taxes	2			(2)			17			—
Total income taxes	$	34		$	37		$	68		$	72
Statutory federal tax rate	21.0		%	21.0		%	21.0		%	21.0		%
Effective tax rate	21.6			20.5			21.6			20.0

Income tax expense was lower for the six months ended June 30, 2024 due to lower pre-tax earnings, partially offset by lower stock compensation vesting deductions, higher disallowance of FDIC premium deductions and higher levels of proportional amortization for certain tax credit investments resulting from the adoption of FASB ASU 2023-02 on January 1, 2024. The effective tax rate increased for the three months ended June 30, 2024 as a result of these offsetting items.

Deferred Income Taxes

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and tax purposes. Deferred tax assets and liabilities are measured based on the enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid. Net deferred tax assets were $107.4 million and $120.8 million at June 30, 2024 and December 31, 2023, respectively.

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OTHER COMPREHENSIVE INCOME (LOSS)

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

OTHER COMPREHENSIVE INCOME (LOSS)

OTHER COMPREHENSIVE INCOME (LOSS)

The following table presents changes in AOCI, net of tax, by component:

TABLE 14.1

(in millions)	Unrealized Net Gains (Losses) on Debt Securities Available for Sale		Unrealized Net Gains (Losses) on Derivative Instruments		Unrecognized Pension and Postretirement Obligations		Total
Six Months Ended June 30, 2024
Balance at beginning of period	$	(160)	$	(33)	$	(42)	$	(235)
Other comprehensive (loss) income before reclassifications	(11)		(12)		—		(23)
Amounts reclassified from AOCI	—		15		—		15
Net current period other comprehensive (loss) income	(11)		3		—		(8)
Balance at end of period	$	(171)	$	(30)	$	(42)	$	(243)

The amounts reclassified from AOCI related to debt securities AFS are included in net securities gains (losses) on the Consolidated Statements of Income, while the amounts reclassified from AOCI related to derivative instruments in cash flow hedge programs are generally included in interest income on loans and leases on the Consolidated Statements of Income. The tax (benefit) expense amounts reclassified from AOCI in connection with the debt securities AFS and derivative instruments reclassifications are included in income taxes on the Consolidated Statements of Income.

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EARNINGS PER COMMON SHARE

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE

Basic earnings per common share is calculated by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding net of unvested shares of restricted stock.

Diluted earnings per common share is calculated by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding, adjusted for the dilutive effect of potential common shares issuable for stock options and restricted shares, as calculated using the treasury stock method. Adjustments to the weighted average number of shares of common stock outstanding are made only when such adjustments dilute earnings per common share.

The following table sets forth the computation of basic and diluted earnings per common share:

TABLE 15.1

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in millions, except per share data)	2024		2023		2024		2023
Net income	$	123	$	142	$	245	$	289
Less: Preferred stock dividends	—		2		6		4
Net income available to common stockholders	$	123	$	140	$	239	$	285
Basic weighted average common shares outstanding	361,754,312		360,124,415		361,500,357		360,489,630
Net effect of dilutive stock options and restricted stock	946,921		2,501,767		1,159,902		3,286,929
Diluted weighted average common shares outstanding	362,701,233		362,626,182		362,660,259		363,776,559
Earnings per common share:
Basic	$	0.34	$	0.39	$	0.66	$	0.79
Diluted	$	0.34	$	0.39	$	0.66	$	0.78

There were no anti-dilutive shares for the six months ended June 30, 2024 and 2023.

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CASH FLOW INFORMATION

6 Months Ended

Jun. 30, 2024

Supplemental Cash Flow Elements [Abstract]

CASH FLOW INFORMATION

CASH FLOW INFORMATION

Following is a summary of supplemental cash flow information:

TABLE 16.1

	Six Months Ended June 30,
(in millions)	2024		2023
Interest paid on deposits and other borrowings	$	461	$	238
Income taxes paid	26		67
Transfers of loans to other real estate owned	1		1
Loans transferred to portfolio from held for sale	12		26

We did not have any restricted cash as of June 30, 2024 and 2023.

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BUSINESS SEGMENTS

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

BUSINESS SEGMENTS

BUSINESS SEGMENTS

We operate in three reportable segments: Community Banking, Wealth Management and Insurance.

•The Community Banking segment provides commercial and consumer banking services. Commercial banking solutions include corporate banking, small business banking, investment real estate financing, business credit, capital markets and lease financing. Consumer banking products and services include deposit products, mortgage lending, consumer lending and a complete suite of mobile and online banking services.

•The Wealth Management segment provides a broad range of personal and corporate fiduciary services including the administration of decedent and trust estates. In addition, it offers various alternative products, including securities brokerage (under a third-party arrangement) and investment advisory services, mutual funds and annuities.

•The Insurance segment includes a full-service insurance brokerage service offering all lines of commercial and personal insurance through major carriers. The Insurance segment also includes a reinsurer.

The following table provides financial information for these segments of FNB. The information provided under the caption “Parent and Other” represents operations not considered to be reportable segments and/or general operating expenses of FNB, and includes the parent company, other non-bank subsidiaries and eliminations and adjustments to reconcile to the Consolidated Financial Statements.

TABLE 17.1

(in millions)	Community Banking		Wealth Management		Insurance		Parent and Other		Consolidated
At or for the Three Months Ended June 30, 2024
Interest income	$	555	$	—	$	—	$	2	$	557
Interest expense	233		—		—		8		241
Net interest income	322		—		—		(6)		316
Provision for credit losses	20		—		—		—		20
Non-interest income	65		20		6		(3)		88
Non-interest expense (1)	199		14		6		3		222
Amortization of intangibles	5		—		—		—		5
Income tax expense (benefit)	36		1		—		(3)		34
Net income (loss)	127		5		—		(9)		123
Total assets	47,421		42		36		216		47,715
Total intangibles	2,503		9		25		—		2,537
At or for the Three Months Ended June 30, 2023
Interest income	$	483	$	—	$	—	$	1	$	484
Interest expense	147		—		—		8		155
Net interest income	336		—		—		(7)		329
Provision for credit losses	19		—		—		—		19
Non-interest income	57		18		7		(1)		81
Non-interest expense (1)	187		13		5		2		207
Amortization of intangibles	5		—		—		—		5
Income tax expense (benefit)	39		1		1		(4)		37
Net income (loss)	143		4		1		(6)		142
Total assets	44,629		39		32		78		44,778
Total intangibles	2,521		9		26		—		2,556
(1) Excludes amortization of intangibles, which is presented separately.

(in millions)	Community Banking		Wealth Management		Insurance		Parent and Other		Consolidated
At or for the Six Months Ended June 30, 2024
Interest income	$	1,097	$	—	$	—	$	3	$	1,100
Interest expense	451		—		—		14		465
Net interest income	646		—		—		(11)		635
Provision for credit losses	34		—		—		—		34
Non-interest income	127		40		13		(4)		176
Non-interest expense (1)	410		27		10		8		455
Amortization of intangibles	9		—		—		—		9
Income tax expense (benefit)	70		3		1		(6)		68
Net income (loss)	250		10		2		(17)		245
Total assets	47,421		42		36		216		47,715
Total intangibles	2,503		9		25		—		2,537
At or for the Six Months Ended June 30, 2023
Interest income	$	925	$	—	$	—	$	3	$	928
Interest expense	245		—		—		17		262
Net interest income	680		—		—		(14)		666
Provision for credit losses	33		—		—		—		33
Non-interest income	112		36		14		(2)		160
Non-interest expense (1)	382		26		9		5		422
Amortization of intangibles	10		—		—		—		10
Income tax expense (benefit)	77		2		1		(8)		72
Net income (loss)	290		8		4		(13)		289
Total assets	44,629		39		32		78		44,778
Total intangibles	2,521		9		26		—		2,556

(1) Excludes amortization of intangibles, which is presented separately.

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FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

Refer to Note 26, "Fair Value Measurements" to the Consolidated Financial Statements included in our 2023 Annual Report on Form 10-K filed with the SEC on February 26, 2024 for a description of additional valuation methodologies for assets and liabilities measured at fair value on a recurring and non-recurring basis.

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis:

TABLE 18.1

(in millions)	Level 1		Level 2		Level 3		Total
June 30, 2024
Assets Measured at Fair Value
Debt securities available for sale
U.S. Treasury	$	197	$	—	$	—	$	197
U.S. government agencies	—		67		—		67
U.S. government-sponsored entities	—		298		—		298
Residential MBS:
Agency MBS	—		886		—		886
Agency collateralized mortgage obligations	—		758		—		758
Agency commercial MBS	—		1,092		—		1,092
States of the U.S. and political subdivisions (municipals)	—		26		—		26
Other debt securities	—		40		—		40
Total debt securities available for sale	197		3,167		—		3,364
Loans held for sale	—		128		—		128
Loans receivable	—		—		47		47
Derivative financial instruments
Trading	—		120		—		120
Not for trading	—		1		3		4
Total derivative financial instruments	—		121		3		124
Total assets measured at fair value on a recurring basis	$	197	$	3,416	$	50	$	3,663
Liabilities Measured at Fair Value
Derivative financial instruments
Trading	$	—	$	353	$	—	$	353
Not for trading	—		3		—		3
Total derivative financial instruments	—		356		—		356
Total liabilities measured at fair value on a recurring basis	$	—	$	356	$	—	$	356

(in millions)	Level 1		Level 2		Level 3		Total
December 31, 2023
Assets Measured at Fair Value
Debt securities available for sale
U.S. Treasury	$	420	$	—	$	—	$	420
U.S. government agencies	—		79		—		79
U.S. government-sponsored entities	—		223		—		223
Residential MBS:
Agency MBS	—		752		—		752
Agency collateralized mortgage obligations	—		832		—		832
Agency commercial MBS	—		884		—		884
States of the U.S. and political subdivisions (municipals)	—		27		—		27
Other debt securities	—		37		—		37
Total debt securities available for sale	420		2,834		—		3,254
Loans held for sale	—		150		—		150
Derivative financial instruments
Trading	—		109		—		109
Not for trading	—		2		5		7
Total derivative financial instruments	—		111		5		116
Total assets measured at fair value on a recurring basis	$	420	$	3,095	$	5	$	3,520
Liabilities Measured at Fair Value
Derivative financial instruments
Trading	$	—	$	324	$	—	$	324
Not for trading	—		4		—		4
Total derivative financial instruments	—		328		—		328
Total liabilities measured at fair value on a recurring basis	$	—	$	328	$	—	$	328

The following table presents additional information about assets measured at fair value on a recurring basis and for which we have utilized Level 3 inputs to determine fair value:

TABLE 18.2

(in millions)	Other Debt Securities		Loans Receivable		Interest Rate Lock Commitments		Total
Six Months Ended June 30, 2024
Balance at beginning of period	$	—	$	—	$	5	$	5
Purchases, issuances, sales and settlements:
Issuances	—		—		3		3
Settlements	—		—		(5)		(5)
Transfers into Level 3	—		47		—		47
Balance at end of period	$	—	$	47	$	3	$	50
Year Ended December 31, 2023
Balance at beginning of period	$	—	$	—	$	—	$	—
Purchases, issuances, sales and settlements:
Issuances	—		—		6		6
Settlements	—		—		(1)		(1)
Balance at end of period	$	—	$	—	$	5	$	5

We review fair value hierarchy classifications on a quarterly basis. Changes in the observability of the valuation attributes may result in reclassification of certain financial assets or liabilities. Such reclassifications are reported as transfers in/out of Level 3 at fair value at the beginning of the period in which the changes occur. During the first six months of 2024, $47.3 million in loans receivable were measured using the fair value option at Level 3 on a recurring basis. There were no transfers of assets or liabilities between the hierarchy levels during the first six months of 2023.

From time to time, we measure certain assets at fair value on a non-recurring basis. These adjustments to fair value usually result from the application of the lower of cost or fair value accounting or write-downs of individual assets. Valuation methodologies used to measure these fair value adjustments were described in Note 26, "Fair Value Measurements" to the Consolidated Financial Statements included in 2023 Annual Report on Form 10-K. For assets measured at fair value on a non-recurring basis still held at the Balance Sheet date, the following table provides the hierarchy level and the fair value of the related assets or portfolios:

TABLE 18.3

(in millions)	Level 1		Level 2		Level 3		Total
June 30, 2024
Collateral dependent loans	$	—	$	—	$	35	$	35
Other assets - MSRs	—		—		1		1
December 31, 2023
Collateral dependent loans	$	—	$	—	$	35	$	35
Indirect installment loans held for sale	—		—		338		338
Other assets - MSRs	—		—		12		12
Other assets - SBA servicing asset	—		—		1		1
Other real estate owned	—		—		2		2

The fair value amounts for collateral dependent loans and OREO in the table above were estimated at a date during the six months or twelve months ended June 30, 2024 and December 31, 2023, respectively. Consequently, the fair value information presented is not necessarily as of the period’s end. Collateral dependent loans measured or re-measured at fair value on a non-recurring basis during the six months ended June 30, 2024 had a carrying amount of $34.8 million, which includes an allocated ACL of $7.3 million. The ACL includes a provision applicable to the current period fair value measurements of $7.1 million, which was included in provision for credit losses for the six months ended June 30, 2024.

MSRs measured at fair value on a non-recurring basis had a carrying value of $0.7 million, and there was no valuation allowance as of June 30, 2024. The valuation allowance includes a provision of $0.2 million included in earnings for 2024.

Fair Value of Financial Instruments

Refer to Note 26, "Fair Value Measurements" to the Consolidated Financial Statements included in our 2023 Annual Report on Form 10-K filed with the SEC on February 26, 2024 for a description of methods and assumptions that were used to estimate the fair value of each financial instrument.

The fair values of our financial instruments are as follows:

TABLE 18.4

					Fair Value Measurements
(in millions)	Carrying Amount		Fair  Value		Level 1		Level 2		Level 3
June 30, 2024
Financial Assets
Cash and cash equivalents	$	1,880	$	1,880	$	1,880	$	—	$	—
Debt securities available for sale	3,364		3,364		197		3,167		—
Debt securities held to maturity	3,893		3,532		—		3,532		—
Net loans and leases, including loans held for sale	33,470		31,998		—		128		31,870
Loan servicing rights	67		79		—		—		79
Derivative assets	124		124		—		121		3
Accrued interest receivable	178		178		178		—		—
Financial Liabilities
Deposits	34,994		34,938		28,107		6,831		—
Short-term borrowings	3,616		3,633		3,633		—		—
Long-term borrowings	2,016		2,043		—		1,274		769
Derivative liabilities	356		356		—		356		—
Accrued interest payable	73		73		73		—		—
December 31, 2023
Financial Assets
Cash and cash equivalents	$	1,576	$	1,576	$	1,576	$	—	$	—
Debt securities available for sale	3,254		3,254		420		2,834		—
Debt securities held to maturity	3,911		3,593		—		3,593		—
Net loans and leases, including loans held for sale	32,405		30,641		—		150		30,491
Loan servicing rights	61		73		—		—		73
Derivative assets	116		116		—		111		5
Accrued interest receivable	160		160		160		—		—
Financial Liabilities
Deposits	34,711		34,654		28,496		6,158		—
Short-term borrowings	2,506		2,505		2,505		—		—
Long-term borrowings	1,971		1,928		—		1,192		736
Derivative liabilities	328		328		—		328		—
Accrued interest payable	69		69		69		—		—

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Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net income	$ 123	$ 142	$ 245	$ 289

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Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

Our accompanying Consolidated Financial Statements and these Notes to Consolidated Financial Statements (unaudited) include subsidiaries in which we have a controlling financial interest. We own and operate FNBPA, First National Trust Company, First National Investment Services Company, LLC, F.N.B. Investment Advisors, Inc., First National Insurance Agency, LLC, Bank Capital Services, LLC, F.N.B. Capital Corporation, LLC and Waubank Securities, LLC, and include results for each of these entities in the accompanying Consolidated Financial Statements.

Companies in which we hold a controlling financial interest, or are a VIE in which we have the power to direct the activities of an entity that most significantly impact the entity’s economic performance and have an obligation to absorb losses or the right to receive benefits which could potentially be significant to the VIE, are consolidated. For a voting interest entity, a controlling financial interest is generally where we hold more than 50% of the outstanding voting shares. VIEs in which we do not hold the power to direct the activities of the entity that most significantly impact the entity’s economic performance or an obligation to absorb losses or the right to receive benefits which could potentially be significant to the VIE are not consolidated. Investments in companies that are not consolidated are accounted for using the equity method when we have the ability to exert significant influence or the cost method when we do not have the ability to exert significant influence. Investments in private investment partnerships that are accounted for under the equity method or the cost method are included in other assets and our proportional interest in the equity investments’ earnings are included in other non-interest income. Investment interests accounted for under the cost and equity methods are periodically evaluated for impairment.

The accompanying interim unaudited Consolidated Financial Statements include all adjustments that are necessary, in the opinion of management, to fairly reflect our financial position and results of operations in accordance with GAAP. All significant intercompany balances and transactions have been eliminated. Certain prior period amounts have been reclassified to the current period presentation. Such reclassifications had no impact on our net income and stockholders' equity. Events occurring subsequent to June 30, 2024 have been evaluated for potential recognition or disclosure in the Consolidated Financial Statements through the date of the filing of the Consolidated Financial Statements with the SEC.

Certain information and Note disclosures normally included in Consolidated Financial Statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. The interim operating results are not necessarily indicative of operating results we expect for the full year. These interim unaudited Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto included in our 2023 Annual Report on Form 10-K filed with the SEC on February 26, 2024.

Use of Estimates

Use of Estimates

Our accounting and reporting policies conform with GAAP. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes to Consolidated Financial Statements (unaudited). Actual results could materially differ from those estimates. Material estimates that are particularly susceptible to significant changes include the ACL, fair value of financial instruments, goodwill and other intangible assets and income taxes and deferred tax assets, which are listed in the critical accounting estimates. For a detailed description of our significant accounting policies and critical accounting estimates, see Note 1, "Summary of Significant Accounting Policies" and the "Application of Critical Accounting Policies" section in the MD&A, both in our 2023 Annual Report on Form 10-K.

Adoption of New Accounting Standards

Adoption of New Accounting Standards

Effective January 1, 2024, we adopted the provision of ASU 2023-02, Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, which permits reporting entities to make an accounting policy election to account for tax equity investments using the proportional amortization method if certain conditions are met. The election is to be made on a tax-credit-program-by-tax-credit-program basis and should be applied consistently to all investments within an elected tax credit program. Upon the adoption of ASU 2023-02, we elected to apply the proportional amortization method of accounting to our qualifying historic and new market tax credit investments. The proportional amortization method recognizes the amortized cost of the investment as a component of income tax expense on the consolidated statements of income and as a component of operating activities within other assets and other liabilities on the consolidated statements of cash flows. We historically applied proportional amortization to the majority of our LIHTC investments. LIHTCs that do not meet the requirements of the proportional amortization method are recognized using the equity method. See Note 8, "Variable Interest Entities" for additional information.

The following table summarizes accounting pronouncements issued by the FASB that we recently adopted or will be adopting in the future.

TABLE 2.1

Standard	Description	Financial Statements Impact
Income Taxes
ASU 2023-09, Income Taxes: Improvements to Income Tax Disclosures	This Update requires public business entities to disclose additional categories of information about federal, state, and foreign income taxes in the tabular rate reconciliation table. Additionally, entities must provide more details regarding reconciling items in some categories if the items are equal to or greater than a specified quantitative threshold. This Update also requires all entities to annually disclose income taxes paid, net of refunds received, disaggregated by federal, state, and foreign taxes and further disaggregated by jurisdiction based on a specified quantitative threshold.	This Update is to be applied using a prospective method with an option to apply it retrospectively for each period presented and will be effective as of January 1, 2025. Early adoption is permitted. We are currently evaluating the effect this Update will have on our consolidated financial statements, the related disclosures and our processes, systems, and controls related to disclosures.

Standard	Description	Financial Statements Impact
Segment Reporting
ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure	This Update requires all public entities to disclose significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required in annual disclosures.	This Update is to be applied using a retrospective method to all prior periods presented and is effective for annual periods beginning on January 1, 2024, and will be effective for interim periods beginning on January 1, 2025. Early adoption is permitted. We do not expect the adoption of this Update to materially impact our consolidated financial statements and we are currently evaluating the effect this Update will have on the related disclosures.
Tax Equity Investments
ASU 2023-02, Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method	This Update expands the use of the proportional amortization method of accounting, previously only allowable for LIHTC investments, to equity investments in other tax credit structures that meet certain criteria. The Update also removed the specialized guidance for LIHTC investments that are not accounted for using the proportional amortization method or equity method and require that those investments are accounted for using Topic 321 regarding equity investments.	This Update is to be applied using either a modified retrospective or a retrospective method and is effective as of January 1, 2024. Early adoption of this Update is permitted. We adopted this Update on January 1, 2024 on a modified retrospective basis for tax credit programs that are eligible to apply proportional amortization. As a result, we recorded a reduction of $0.5 million in retained earnings for the cumulative effect of the adoption.

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NEW ACCOUNTING STANDARDS (Tables)

6 Months Ended

Jun. 30, 2024

Accounting Changes and Error Corrections [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The following table summarizes accounting pronouncements issued by the FASB that we recently adopted or will be adopting in the future.

TABLE 2.1

Standard	Description	Financial Statements Impact
Income Taxes
ASU 2023-09, Income Taxes: Improvements to Income Tax Disclosures	This Update requires public business entities to disclose additional categories of information about federal, state, and foreign income taxes in the tabular rate reconciliation table. Additionally, entities must provide more details regarding reconciling items in some categories if the items are equal to or greater than a specified quantitative threshold. This Update also requires all entities to annually disclose income taxes paid, net of refunds received, disaggregated by federal, state, and foreign taxes and further disaggregated by jurisdiction based on a specified quantitative threshold.	This Update is to be applied using a prospective method with an option to apply it retrospectively for each period presented and will be effective as of January 1, 2025. Early adoption is permitted. We are currently evaluating the effect this Update will have on our consolidated financial statements, the related disclosures and our processes, systems, and controls related to disclosures.

Standard	Description	Financial Statements Impact
Segment Reporting
ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure	This Update requires all public entities to disclose significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required in annual disclosures.	This Update is to be applied using a retrospective method to all prior periods presented and is effective for annual periods beginning on January 1, 2024, and will be effective for interim periods beginning on January 1, 2025. Early adoption is permitted. We do not expect the adoption of this Update to materially impact our consolidated financial statements and we are currently evaluating the effect this Update will have on the related disclosures.
Tax Equity Investments
ASU 2023-02, Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method	This Update expands the use of the proportional amortization method of accounting, previously only allowable for LIHTC investments, to equity investments in other tax credit structures that meet certain criteria. The Update also removed the specialized guidance for LIHTC investments that are not accounted for using the proportional amortization method or equity method and require that those investments are accounted for using Topic 321 regarding equity investments.	This Update is to be applied using either a modified retrospective or a retrospective method and is effective as of January 1, 2024. Early adoption of this Update is permitted. We adopted this Update on January 1, 2024 on a modified retrospective basis for tax credit programs that are eligible to apply proportional amortization. As a result, we recorded a reduction of $0.5 million in retained earnings for the cumulative effect of the adoption.

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SECURITIES (Tables)

6 Months Ended

Jun. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Schedule of Amortized Cost and Fair Value of Securities Available for Sale

The amortized cost and fair value of AFS debt securities are presented in the table below. There was no ACL associated with the AFS portfolio at June 30, 2024 and December 31, 2023. Accrued interest receivable on AFS debt securities totaled $13.3 million at June 30, 2024 and $9.6 million at December 31, 2023, and is excluded from the estimate of credit losses and assessed separately in other assets in the Consolidated Balance Sheets. Accordingly, we have excluded accrued interest receivable from both the fair value and amortized cost basis of AFS debt securities.

TABLE 3.1

(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair  Value
Debt Securities AFS:
June 30, 2024
U.S. Treasury	$	199	$	—	$	(2)	$	197
U.S. government agencies	67		—		—		67
U.S. government-sponsored entities	301		1		(4)		298
Residential MBS:
Agency MBS	951		—		(65)		886
Agency collateralized mortgage obligations	871		—		(113)		758
Agency commercial MBS	1,127		3		(38)		1,092
States of the U.S. and political subdivisions (municipals)	28		—		(2)		26
Other debt securities	41		—		(1)		40
Total debt securities AFS	$	3,585	$	4	$	(225)	$	3,364

(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair  Value
Debt Securities AFS:
December 31, 2023
U.S. Treasury	$	422	$	—	$	(2)	$	420
U.S. government agencies	78		1		—		79
U.S. government-sponsored entities	227		—		(4)		223
Residential MBS:
Agency MBS	814		—		(62)		752
Agency collateralized mortgage obligations	946		—		(114)		832
Agency commercial MBS	905		9		(30)		884
States of the U.S. and political subdivisions (municipals)	30		—		(3)		27
Other debt securities	38		—		(1)		37
Total debt securities AFS	$	3,460	$	10	$	(216)	$	3,254

Schedule of Amortized Cost and Fair Value of Securities Held to Maturity

The amortized cost and fair value of HTM debt securities are presented in the following table. The ACL for the HTM portfolio was $0.27 million and $0.28 million at June 30, 2024 and December 31, 2023, respectively. Accrued interest receivable on HTM debt securities totaled $14.1 million and $14.7 million at June 30, 2024 and December 31, 2023, respectively, and is excluded from the estimate of credit losses and assessed separately in other assets in the Consolidated Balance Sheets. Accordingly, we have excluded accrued interest receivable from both the fair value and amortized cost basis of HTM debt securities.

TABLE 3.2

(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair  Value
Debt Securities HTM:
June 30, 2024
U.S. Treasury	$	1	$	—	$	—	$	1
U.S. government agencies	1		—		—		1
U.S. government-sponsored entities	28		—		—		28
Residential MBS:
Agency MBS	977		1		(106)		872
Agency collateralized mortgage obligations	769		—		(108)		661
Agency commercial MBS	1,094		2		(50)		1,046
States of the U.S. and political subdivisions (municipals)	1,007		—		(98)		909
Other debt securities	16		—		(2)		14
Total debt securities HTM	$	3,893	$	3	$	(364)	$	3,532

(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair  Value
Debt Securities HTM:
December 31, 2023
U.S. government agencies	$	1	$	—	$	—	$	1
U.S. government-sponsored entities	68		—		—		68
Residential MBS:
Agency MBS	1,057		2		(101)		958
Agency collateralized mortgage obligations	824		—		(104)		720
Agency commercial MBS	929		4		(43)		890
States of the U.S. and political subdivisions (municipals)	1,017		2		(77)		942
Other debt securities	15		—		(1)		14
Total debt securities HTM	$	3,911	$	8	$	(326)	$	3,593

Schedule of Amortized Cost and Fair Value of Securities, by Contractual Maturities

As of June 30, 2024, the amortized cost and fair value of debt securities, by contractual maturities, were as follows:

TABLE 3.3

	Available for Sale				Held to Maturity
(in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	112	$	110	$	3	$	3
Due after one year but within five years	461		456		86		82
Due after five years but within ten years	33		32		224		207
Due after ten years	30		30		740		661
	636		628		1,053		953
Residential MBS:
Agency MBS	951		886		977		872
Agency collateralized mortgage obligations	871		758		769		661
Agency commercial MBS	1,127		1,092		1,094		1,046
Total debt securities	$	3,585	$	3,364	$	3,893	$	3,532

Schedule of Securities Pledged as Collateral

Following is information relating to securities pledged:

TABLE 3.4

(dollars in millions)	June 30, 2024			December 31, 2023
Securities pledged (carrying value):
To secure public deposits, trust deposits and for other purposes as required by law	$	5,805		$	6,190
As collateral for short-term borrowings	225			250
Securities pledged as a percent of total securities	83.1		%	89.9		%

Schedule of Fair Values and Unrealized Losses of Impaired Securities, Segregated by Length of Impairment

Following are summaries of the fair values of AFS debt securities in an unrealized loss position for which an ACL has not been recorded, segregated by security type and length of time in a continuous loss position:

TABLE 3.5

	Less than 12 Months					12 Months or More					Total
(dollars in millions)	#	Fair  Value		Unrealized Losses		#	Fair  Value		Unrealized Losses		#	Fair  Value		Unrealized Losses
Debt Securities AFS
June 30, 2024
U.S. Treasury	1	$	49	$	—	2	$	74	$	(2)	3	$	123	$	(2)
U.S. government agencies	—	—		—		13	31		—		13	31		—
U.S. government-sponsored entities	3	74		—		7	123		(4)		10	197		(4)
Residential MBS:
Agency MBS	6	179		(1)		104	659		(64)		110	838		(65)
Agency collateralized mortgage obligations	—	—		—		69	758		(113)		69	758		(113)
Agency commercial MBS	16	494		(5)		20	361		(33)		36	855		(38)
States of the U.S. and political subdivisions (municipals)	—	—		—		12	26		(2)		12	26		(2)
Other debt securities	1	5		—		7	18		(1)		8	23		(1)
Total	27	$	801	$	(6)	234	$	2,050	$	(219)	261	$	2,851	$	(225)
	Less than 12 Months					12 Months or More					Total
(dollars in millions)	#	Fair  Value		Unrealized Losses		#	Fair  Value		Unrealized Losses		#	Fair  Value		Unrealized Losses
Debt Securities AFS
December 31, 2023
U.S. Treasury	—	$	—	$	—	2	$	73	$	(2)	2	$	73	$	(2)
U.S. government agencies	2	4		—		12	36		—		14	40		—
U.S. government-sponsored entities	1	25		—		7	123		(4)		8	148		(4)
Residential MBS:
Agency MBS	—	—		—		104	750		(62)		104	750		(62)
Agency collateralized mortgage obligations	—	—		—		71	832		(114)		71	832		(114)
Agency commercial MBS	1	32		—		20	377		(30)		21	409		(30)
States of the U.S. and political subdivisions (municipals)	—	—		—		13	27		(3)		13	27		(3)
Other debt securities	2	9		—		7	17		(1)		9	26		(1)
Total	6	$	70	$	—	236	$	2,235	$	(216)	242	$	2,305	$	(216)

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LOANS AND LEASES (Tables)

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Schedule of Loans and Leases, Net of Unearned Income

Following is a summary of total loans and leases, net of unearned income:

TABLE 4.1

(in millions)	June 30, 2024		December 31, 2023
Commercial real estate	$	12,664	$	12,305
Commercial and industrial	7,597		7,482
Commercial leases	683		599
Other	145		110
Total commercial loans and leases	21,089		20,496
Direct installment	2,700		2,741
Residential mortgages	7,459		6,640
Indirect installment	1,188		1,149
Consumer lines of credit	1,321		1,297
Total consumer loans	12,668		11,827
Total loans and leases, net of unearned income	$	33,757	$	32,323

Schedule of Certain Information Relating to Commercial Real Estate Loans

The following table shows occupancy information relating to commercial real estate loans:

TABLE 4.2

(dollars in millions)	June 30, 2024		December 31, 2023
Commercial real estate:
Percent owner-occupied	29.5	%	29.0	%
Percent non-owner-occupied	70.5		71.0

Schedule of Loan, Credit Quality Indicators

We use an internal risk rating assigned to a commercial loan or lease at origination, summarized below.

TABLE 4.3

Rating Category	Definition
Pass	in general, the condition of the borrower and the performance of the loan is satisfactory or better
Special Mention	in general, the condition of the borrower has deteriorated, requiring an increased level of monitoring
Substandard	in general, the condition of the borrower has significantly deteriorated and the performance of the loan could further deteriorate if deficiencies are not corrected
Doubtful	in general, the condition of the borrower has significantly deteriorated and the collection in full of both principal and interest is highly questionable or improbable

Schedule of Financing Receivables, Originated Year

The following table summarizes the designated loan rating category by loan class including term loans on an amortized cost basis by origination year and year-to-date gross charge-offs by originating year:

TABLE 4.4

June 30, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
(in millions)
COMMERCIAL
Commercial Real Estate:
Risk Rating:
Pass	$	708	$	1,570	$	2,133	$	2,187	$	1,338	$	3,515	$	176	$	11,627
Special Mention	1		14		155		81		140		241		35		667
Substandard	6		16		56		73		20		196		3		370
Total commercial real estate	715		1,600		2,344		2,341		1,498		3,952		214		12,664
Commercial real estate current period gross charge-offs	—		0.3		0.6		0.3		0.1		9.0		—		10.3
Commercial and Industrial:
Risk Rating:
Pass	490		1,360		1,169		671		466		753		2,061		6,970
Special Mention	1		31		37		119		14		70		36		308
Substandard	1		43		20		50		6		81		118		319
Total commercial and industrial	492		1,434		1,226		840		486		904		2,215		7,597
Commercial and industrial current period gross charge-offs	—		0.5		1.0		1.0		0.9		5.2		—		8.6
Commercial Leases:
Risk Rating:
Pass	179		207		121		69		36		48		—		660
Special Mention	—		1		—		—		—		1		—		2
Substandard	—		7		2		5		6		1		—		21
Total commercial leases	179		215		123		74		42		50		—		683
Commercial leases current period gross charge-offs	—		—		—		—		—		0.2		—		0.2
Other Commercial:
Risk Rating:
Pass	8		54		—		—		—		6		77		145
Total other commercial	8		54		—		—		—		6		77		145
Other commercial current period gross charge-offs	—		—		—		—		—		1.9		—		1.9
Total commercial loans and leases	1,394		3,303		3,693		3,255		2,026		4,912		2,506		21,089

June 30, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
(in millions)
CONSUMER
Direct Installment:
Current	165		310		667		732		366		447		—		2,687
Past due	—		1		1		1		1		9		—		13
Total direct installment	165		311		668		733		367		456		—		2,700
Direct installment current period gross charge-offs	—		0.1		0.1		0.1		—		0.3		—		0.6
Residential Mortgages:
Current	918		1,499		1,642		1,469		763		1,109		1		7,401
Past due	1		8		6		6		3		34		—		58
Total residential mortgages	919		1,507		1,648		1,475		766		1,143		1		7,459
Residential mortgages current period gross charge-offs	—		0.1		—		—		—		0.1		—		0.2
Indirect Installment:
Current	256		269		323		188		72		60		—		1,168
Past due	—		3		7		7		2		1		—		20
Total indirect installment	256		272		330		195		74		61		—		1,188
Indirect installment current period gross charge-offs	—		0.8		2.5		1.6		0.3		0.2		—		5.4
Consumer Lines of Credit:
Current	5		34		56		13		3		117		1,078		1,306
Past due	—		—		1		1		—		11		2		15
Total consumer lines of credit	5		34		57		14		3		128		1,080		1,321
Consumer lines of credit current period gross charge-offs	—		—		0.1		—		—		0.5		—		0.6
Total consumer loans	1,345		2,124		2,703		2,417		1,210		1,788		1,081		12,668
Total loans and leases	$	2,739	$	5,427	$	6,396	$	5,672	$	3,236	$	6,700	$	3,587	$	33,757
Total charge-offs	$	—	$	1.8	$	4.3	$	3.0	$	1.3	$	17.4	$	—	$	27.8

December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
(in millions)
COMMERCIAL
Commercial Real Estate:
Risk Rating:
Pass	$	1,508	$	2,133	$	2,298	$	1,449	$	1,131	$	2,711	$	230	$	11,460
Special Mention	10		66		76		136		105		197		5		595
Substandard	5		27		27		13		59		104		15		250
Total commercial real estate	1,523		2,226		2,401		1,598		1,295		3,012		250		12,305
Commercial real estate current period gross charge-offs	0.2		0.4		0.4		0.7		0.2		10.5		—		12.4
Commercial and Industrial:
Risk Rating:
Pass	1,509		1,369		844		575		370		585		1,773		7,025
Special Mention	12		3		56		2		12		35		35		155
Substandard	34		26		62		9		24		58		89		302
Total commercial and industrial	1,555		1,398		962		586		406		678		1,897		7,482
Commercial and industrial current period gross charge-offs	0.1		0.3		1.0		1.0		2.2		46.6		—		51.2
Commercial Leases:
Risk Rating:
Pass	247		134		82		47		24		41		—		575
Special Mention	—		1		—		—		—		1		—		2
Substandard	7		3		4		7		1		—		—		22
Total commercial leases	254		138		86		54		25		42		—		599
Commercial leases current period gross charge-offs	—		—		—		—		—		—		—		—
Other Commercial:
Risk Rating:
Pass	39		—		—		—		—		8		63		110
Total other commercial	39		—		—		—		—		8		63		110
Other commercial current period gross charge-offs	—		—		—		—		—		4.5		—		4.5
Total commercial loans and leases	3,371		3,762		3,449		2,238		1,726		3,740		2,210		20,496

December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
(in millions)
CONSUMER
Direct Installment:
Current	340		712		784		392		136		364		—		2,728
Past due	—		1		—		1		1		10		—		13
Total direct installment	340		713		784		393		137		374		—		2,741
Direct installment current period gross charge-offs	—		0.2		0.1		0.1		—		0.2		—		0.6
Residential Mortgages:
Current	1,421		1,686		1,516		799		343		819		1		6,585
Past due	3		6		5		3		3		35		—		55
Total residential mortgages	1,424		1,692		1,521		802		346		854		1		6,640
Residential mortgages current period gross charge-offs	—		—		—		—		—		0.7		—		0.7
Indirect Installment:
Current	311		387		238		100		42		49		—		1,127
Past due	2		8		8		2		1		1		—		22
Total indirect installment	313		395		246		102		43		50		—		1,149
Indirect installment current period gross charge-offs	0.4		4.3		3.7		0.6		0.3		1.4		—		10.7
Consumer Lines of Credit:
Current	38		61		14		2		3		117		1,044		1,279
Past due	—		1		1		—		—		13		3		18
Total consumer lines of credit	38		62		15		2		3		130		1,047		1,297
Consumer lines of credit current period gross charge-offs	0.1		—		—		—		—		0.9		—		1.0
Total consumer loans	2,115		2,862		2,566		1,299		529		1,408		1,048		11,827
Total loans and leases	$	5,486	$	6,624	$	6,015	$	3,537	$	2,255	$	5,148	$	3,258	$	32,323
Total charge-offs	$	0.8	$	5.2	$	5.2	$	2.4	$	2.7	$	64.8	$	—	$	81.1

Schedule of Age Analysis of Past Due Loans, by Class

The following table provides an analysis of the aging of loans by class.

TABLE 4.5

(in millions)	30-89 Days Past Due		> 90 Days Past Due and Still Accruing		Non- Accrual		Total Past Due		Current		Total Loans and Leases		Non-accrual with No ACL
June 30, 2024
Commercial real estate	$	10	$	—	$	33	$	43	$	12,621	$	12,664	$	19
Commercial and industrial	9		—		45		54		7,543		7,597		19
Commercial leases	2		—		3		5		678		683		—
Other	3		1		2		6		139		145		—
Total commercial loans and leases	24		1		83		108		20,981		21,089		38
Direct installment	7		1		5		13		2,687		2,700		—
Residential mortgages	39		7		12		58		7,401		7,459		—
Indirect installment	18		—		2		20		1,168		1,188		—
Consumer lines of credit	7		2		6		15		1,306		1,321		—
Total consumer loans	71		10		25		106		12,562		12,668		—
Total loans and leases	$	95	$	11	$	108	$	214	$	33,543	$	33,757	$	38

(in millions)	30-89 Days Past Due		> 90 Days Past Due and Still Accruing		Non- Accrual		Total Past Due		Current		Total Loans and Leases		Non-accrual with No ACL
December 31, 2023
Commercial real estate	$	21	$	—	$	42	$	63	$	12,242	$	12,305	$	18
Commercial and industrial	9		—		39		48		7,434		7,482		7
Commercial leases	2		—		3		5		594		599		—
Other	1		1		—		2		108		110		—
Total commercial loans and leases	33		1		84		118		20,378		20,496		25
Direct installment	7		1		5		13		2,728		2,741		—
Residential mortgages	38		7		10		55		6,585		6,640		—
Indirect installment	19		1		2		22		1,127		1,149		—
Consumer lines of credit	10		2		6		18		1,279		1,297		—
Total consumer loans	74		11		23		108		11,719		11,827		—
Total loans and leases	$	107	$	12	$	107	$	226	$	32,097	$	32,323	$	25

Schedule of Non-Performing Assets

Following is a summary of non-performing assets:

TABLE 4.6

(dollars in millions)	June 30, 2024			December 31, 2023
Non-accrual loans	$	108		$	107
Total non-performing loans and leases	108			107
Other real estate owned	3			3
Total non-performing assets	$	111		$	110
Asset quality ratios:
Non-performing loans and leases / total loans and leases	0.32		%	0.33		%
Non-performing assets plus 90 days or more past due / total loans and leases plus OREO	0.36			0.38

Schedule of Financing Receivable, Modified

The following table shows the amortized cost basis at the end of the reporting period of the loans modified during the period to borrowers experiencing financial difficulty, disaggregated by class of financing receivable, type of concession granted and the financial effect of the modifications made to borrowers experiencing financial difficulty:

TABLE 4.7

(dollars in millions)	Amortized Cost Basis		% of Total Class of Financing Receivable		Financial Effect
Three Months Ended June 30, 2024
Term Extension
Direct installment	$	0.7	0.03	%	The modified loans had an average increase in term of 41 months extending the maturity date.
Residential mortgages	3.4		0.05		The modified loans had an average increase in term of 24 months extending the maturity date.
Consumer lines of credit	0.5		0.04		The modified loans had an average increase in term of 162 months extending the maturity date.
Total	4.6
Term Extension and Rate Reduction
Residential mortgages	0.2		—		Multiple modifications were made with no material financial effect.
Consumer lines of credit	0.2		0.02		Multiple modifications were made with no material financial effect.
Total	0.4
Other
Commercial real estate	0.1		—		3 to 9 month payment deferrals with no income being earned on these loans.
Total	0.1
Total Outstanding Modified	$	5.1

(dollars in millions)	Amortized Cost Basis		% of Total Class of Financing Receivable		Financial Effect
Six Months Ended June 30, 2024
Term Extension
Direct installment	$	0.8	0.03	%	The modified loans had an average increase in term of 61 months, extending the maturity date.
Residential mortgages	4.1		0.05		The modified loans had an average increase in term of 28 months, extending the maturity date.
Consumer lines of credit	1.0		0.08		The modified loans had an average increase in term of 208 months, extending the maturity date.
Total	5.9
Rate Reduction
Residential mortgages	0.1		—		The term was extended, with a weighted average yield reduction of 100 basis points.
Total	0.1
Term Extension and Rate Reduction
Commercial real estate	0.9		0.01		Multiple modifications were made with no material financial effect.
Residential mortgages	0.8		0.01		Multiple modifications were made with no material financial effect.
Consumer lines of credit	0.2		0.02		Multiple modifications were made with no material financial effect.
Total	1.9
Balloon Payment
Commercial real estate	0.6		—		Multiple modifications were made with no material financial effect.
Total	0.6
Other
Commercial real estate	4.2		0.03		3 to 12 month payment deferrals with no income being earned on these loans.
Commercial and industrial	0.6		0.01		Multiple modifications were made with no material financial effect.
Total	4.8
Total Outstanding Modified	$	13.3

(dollars in millions)	Amortized Cost Basis		% of Total Class of Financing Receivable		Financial Effect
Three Months Ended June 30, 2023
Term Extension
Commercial real estate	$	11.2	0.10	%	The modified loans had an average increase in term of 22 months, extending the maturity date.
Direct installment	0.3		0.01		The repayment on the loans modified were extended, lowering the monthly repayment.
Residential mortgages	1.5		0.02		The modified loans had an average increase in term of 138 months, extending the maturity date.
Total	13.0
Term Extension and Rate Reduction
Commercial and industrial	0.1		—		The term was extended, with a weighted average yield reduction of 487 basis points.
Direct installment	0.2		0.01		The modified loans had an average increase in term of 445 months, extending the maturity date.
Residential mortgages	0.4		0.01		The modified loans had an average increase in term of 151 months, extending the maturity date.
Consumer lines of credit	0.6		0.05		The term was extended, with a weighted average yield reduction of 326 basis points.
Total	1.3
Other
Consumer lines of credit	0.2		0.02		Multiple modifications were made with no material financial effect.
Total	0.2
Total Outstanding Modified	$	14.5

(dollars in millions)	Amortized Cost Basis		% of Total Class of Financing Receivable		Financial Effect
Six Months Ended June 30, 2023
Term Extension
Commercial real estate	$	11.5	0.10	%	The modified loans had an average increase in term of 22 months, extending the maturity date.
Commercial and industrial	2.3		0.03		The modified loans had an average increase in term of 12 months, extending the maturity date.
Direct installment	0.4		0.01		The repayment on the loans modified were extended, lowering the monthly repayment.
Residential mortgages	1.6		0.03		The modified loans had an average increase in term of 141 months, extending the maturity date.
Consumer lines of credit	0.2		0.02		The repayment on the loans modified was extended, lowering the monthly repayment.
Total	16.0
Term Extension and Rate Reduction
Commercial and industrial	0.2		—		The term was extended, with a weighted average yield reduction of 487 basis points.
Direct installment	0.3		0.01		The modified loans had an average increase in term of 363 months, extending the maturity date.
Residential mortgages	0.7		0.01		The term was extended, with a weighted average yield reduction of 278 basis points.
Consumer lines of credit	0.6		0.05		The term was extended, with a weighted average yield reduction of 326 basis points.
Total	1.8
Other
Commercial real estate	0.3		—		Multiple modifications were made with no material financial effect.
Residential mortgages	0.1		—		Multiple modifications were made with no material financial effect.
Consumer lines of credit	0.2		0.02		Multiple modifications were made with no material financial effect.
Total	0.6
Total Outstanding Modified	$	18.4

We closely monitor the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of our modification efforts. The following table depicts the performance of loans that have been modified in the last 12 months:

TABLE 4.9

Payment status - amortization cost basis:
(in millions)	Current		30-89 Days Past Due		90+ Days Past Due
June 30, 2024
Commercial real estate	$	14.8	$	—	$	—
Commercial and industrial	18.5		—		—
Total commercial loans and leases	33.3		—		—
Direct installment	1.3		0.8		—
Residential mortgages	3.3		2.9		1.2
Consumer lines of credit	1.6		0.4		—
Total consumer loans	6.2		4.1		1.2
Total	$	39.5	$	4.1	$	1.2
(in millions)	Current		30-89 Days Past Due		90+ Days Past Due
June 30, 2023
Commercial real estate	$	11.9	$	—	$	—
Commercial and industrial	1.7		0.8		—
Total commercial loans and leases	13.6		0.8		—
Direct installment	0.6		0.1		—
Residential mortgages	1.8		0.5		—
Consumer lines of credit	1.0		—		—
Total consumer loans	3.4		0.6		—
Total	$	17.0	$	1.4	$	—

Schedule of Financing Receivable, Modified, Subsequent Default

Following is a summary of loans modified in a manner that grants a concession to a borrower experiencing financial difficulties, by class, for which there was a payment default, excluding loans that have been paid off and/or sold. Default occurs when a loan is 90 days or more past due or in non-accrual and is within 12 months of restructuring.

TABLE 4.8

Amortized cost basis of modified financing receivables that subsequently defaulted:
(in millions)	Term Extension		Term Extension and Rate Reduction		Balloon Payment		Other		Total Outstanding Modified
Three Months Ended June 30, 2024
Commercial real estate	$	0.4	$	—	$	—	$	0.2	$	0.6
Commercial and industrial	—		—		—		0.9		0.9
Total commercial loans and leases	0.4		—		—		1.1		1.5
Residential mortgages	1.5		—		—		—		1.5
Total consumer loans	1.5		—		—		—		1.5
Total	$	1.9	$	—	$	—	$	1.1	$	3.0
Six Months Ended June 30, 2024
Commercial real estate	$	0.7	$	0.9	$	0.6	$	8.8	$	11.0
Commercial and industrial	20.3		0.2		—		1.6		22.1
Total commercial loans and leases	21.0		1.1		0.6		10.4		33.1
Residential mortgages	1.7		—		—		—		1.7
Total consumer loans	1.7		—		—		—		1.7
Total	$	22.7	$	1.1	$	0.6	$	10.4	$	34.8

(in millions)	Term Extension		Term Extension and Rate Reduction		Other		Total Outstanding Modified
Three Months Ended June 30, 2023
Commercial real estate	$	0.4	$	—	$	0.1	$	0.5
Commercial and industrial	—		0.1		—		0.1
Total commercial loans and leases	0.4		0.1		0.1		0.6
Total	$	0.4	$	0.1	$	0.1	$	0.6
Six Months Ended June 30, 2023
Commercial real estate	$	0.4	$	—	$	0.7	$	1.1
Commercial and industrial	1.5		0.2		—		1.7
Total commercial loans and leases	1.9		0.2		0.7		2.8
Residential mortgages	—		0.3		—		0.3
Consumer lines of credit	0.1		—		—		0.1
Total consumer loans	0.1		0.3		—		0.4
Total	$	2.0	$	0.5	$	0.7	$	3.2

XML

ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES (Tables)

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Schedule of Changes in Allowance for Credit Losses by Loan and Lease Class

Following is a summary of changes in the ACL, by loan and lease class:

TABLE 5.1

(in millions)	Balance at Beginning of Period		Charge- Offs		Recoveries		Net (Charge- Offs) Recoveries		Provision for Credit Losses		Balance at End of Period
Three Months Ended June 30, 2024
Commercial real estate	$	161.9	$	(3.2)	$	0.8	$	(2.4)	$	(1.8)	$	157.7
Commercial and industrial	86.9		(4.7)		1.7		(3.0)		9.6		93.5
Commercial leases	22.4		—		0.1		0.1		0.4		22.9
Other	4.1		(1.0)		0.6		(0.4)		0.3		4.0
Total commercial loans and leases	275.3		(8.9)		3.2		(5.7)		8.5		278.1
Direct installment	30.6		(0.4)		0.2		(0.2)		0.5		30.9
Residential mortgages	79.3		(0.2)		0.1		(0.1)		9.0		88.2
Indirect installment	12.5		(2.5)		0.9		(1.6)		2.2		13.1
Consumer lines of credit	8.6		(0.3)		0.1		(0.2)		0.1		8.5
Total consumer loans	131.0		(3.4)		1.3		(2.1)		11.8		140.7
Total allowance for credit losses on loans and leases	406.3		(12.3)		4.5		(7.8)		20.3		418.8
Allowance for unfunded loan commitments	21.9		—		—		—		(0.1)		21.8
Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments	$	428.2	$	(12.3)	$	4.5	$	(7.8)	$	20.2	$	440.6
Six Months Ended June 30, 2024
Commercial real estate	$	166.6	$	(10.3)	$	1.2	$	(9.1)	$	0.2	$	157.7
Commercial and industrial	87.8		(8.6)		2.5		(6.1)		11.8		93.5
Commercial leases	21.2		(0.2)		0.1		(0.1)		1.8		22.9
Other	3.7		(1.9)		0.9		(1.0)		1.3		4.0
Total commercial loans and leases	279.3		(21.0)		4.7		(16.3)		15.1		278.1
Direct installment	33.8		(0.6)		0.4		(0.2)		(2.7)		30.9
Residential mortgages	70.5		(0.2)		0.1		(0.1)		17.8		88.2
Indirect installment	12.8		(5.4)		1.5		(3.9)		4.2		13.1
Consumer lines of credit	9.2		(0.6)		0.5		(0.1)		(0.6)		8.5
Total consumer loans	126.3		(6.8)		2.5		(4.3)		18.7		140.7
Total allowance for credit losses on loans and leases	405.6		(27.8)		7.2		(20.6)		33.8		418.8
Allowance for unfunded loan commitments	21.5		—		—		—		0.3		21.8
Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments	$	427.1	$	(27.8)	$	7.2	$	(20.6)	$	34.1	$	440.6

(in millions)	Balance at Beginning of Period		Charge- Offs		Recoveries		Net (Charge- Offs) Recoveries		Provision for Credit Losses		Balance at End of Period
Three Months Ended June 30, 2023
Commercial real estate	$	159.2	$	(1.8)	$	1.3	$	(0.5)	$	(4.5)	$	154.2
Commercial and industrial	101.7		(5.5)		0.7		(4.8)		17.4		114.3
Commercial leases	14.8		—		—		—		0.4		15.2
Other	4.0		(1.6)		0.2		(1.4)		1.2		3.8
Total commercial loans and leases	279.7		(8.9)		2.2		(6.7)		14.5		287.5
Direct installment	36.2		(0.1)		0.1		—		(0.6)		35.6
Residential mortgages	60.4		(0.2)		—		(0.2)		3.2		63.4
Indirect installment	16.6		(2.2)		0.5		(1.7)		1.7		16.6
Consumer lines of credit	10.5		(0.3)		0.2		(0.1)		(0.8)		9.6
Total consumer loans	123.7		(2.8)		0.8		(2.0)		3.5		125.2
Total allowance for credit losses on loans and leases	403.4		(11.7)		3.0		(8.7)		18.0		412.7
Allowance for unfunded loan commitments	20.5		—		—		—		0.5		21.0
Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments	$	423.9	$	(11.7)	$	3.0	$	(8.7)	$	18.5	$	433.7
Six Months Ended June 30, 2023
Commercial real estate	$	162.1	$	(8.3)	$	2.3	$	(6.0)	$	(1.9)	$	154.2
Commercial and industrial	102.1		(11.3)		1.6		(9.7)		21.9		114.3
Commercial leases	13.5		—		—		—		1.7		15.2
Other	4.0		(2.4)		0.5		(1.9)		1.7		3.8
Total commercial loans and leases	281.7		(22.0)		4.4		(17.6)		23.4		287.5
Direct installment	35.9		(0.4)		0.3		(0.1)		(0.2)		35.6
Residential mortgages	55.5		(0.6)		0.2		(0.4)		8.3		63.4
Indirect installment	17.3		(4.8)		1.1		(3.7)		3.0		16.6
Consumer lines of credit	11.3		(0.6)		0.5		(0.1)		(1.6)		9.6
Total consumer loans	120.0		(6.4)		2.1		(4.3)		9.5		125.2
Total allowance for credit losses on loans and leases	401.7		(28.4)		6.5		(21.9)		32.9		412.7
Allowance for unfunded loan commitments	21.4		—		—		—		(0.4)		21.0
Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments	$	423.1	$	(28.4)	$	6.5	$	(21.9)	$	32.5	$	433.7

Following is a summary of changes in the AULC by portfolio segment:

TABLE 5.2

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
(in millions)
Balance at beginning of period	$	21.9	$	20.5	$	21.5	$	21.4
Provision for unfunded loan commitments and letters of credit:
Commercial portfolio	(0.1)		0.5		0.4		(0.4)
Consumer portfolio	—		—		(0.1)		—
Balance at end of period	$	21.8	$	21.0	$	21.8	$	21.0

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LOAN SERVICING (Tables) - Mortgage Servicing Rights

6 Months Ended

Jun. 30, 2024

Servicing Assets at Fair Value [Line Items]

Schedule of Servicing Asset at Amortized Cost

The unpaid principal balance of mortgage loans serviced for others is listed below:

TABLE 6.1

(in millions)	June 30, 2024		December 31, 2023
Mortgage loans sold with servicing retained	$	6,095	$	5,729

The following table summarizes activity relating to mortgage loans sold with servicing retained:

TABLE 6.2

	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2024		2023		2024		2023
Mortgage loans sold with servicing retained	$	306	$	261	$	622	$	459
Pre-tax net gains (losses) resulting from above loan sales (1)	5		1		11		1
Mortgage servicing fees (1)	3		4		7		7

(1) Recorded in mortgage banking operations on the Consolidated Statements of Income.

Following is a summary of activity relating to MSRs:

TABLE 6.3

	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2024		2023		2024		2023
Balance at beginning of period	$	62.5	$	54.3	$	59.5	$	52.8
Additions	3.9		2.7		7.8		5.2
Payoffs and curtailments	(0.8)		—		(1.3)		(0.3)
Impairment (charge) / recovery	—		—		0.2		—
Amortization / other	(0.5)		(1.3)		(1.1)		(2.0)
Balance at end of period	$	65.1	$	55.7	$	65.1	$	55.7
Fair value, beginning of period	$	75.2	$	67.8	$	71.8	$	68.6
Fair value, end of period	78.0		72.1		78.0		72.1

Schedule of Assumptions for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement

Following is a summary of the sensitivity of the fair value of MSRs to changes in key assumptions:

TABLE 6.4

(dollars in millions)	June 30, 2024			December 31, 2023
Weighted average life (months)	92			92
Constant prepayment rate (annualized)	8.1		%	7.9		%
Discount rate	10.2		%	10.2		%
Effect on fair value due to change in interest rates:
+2.00%	$	8		$	7
+1.00%	6			5
+0.50%	4			3
+0.25%	2			2
-0.25%	(2)			(2)
-0.50%	(5)			(4)
-1.00%	(10)			(8)
-2.00%	(19)			(21)
-3.00%	(36)			(42)

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LEASES (Tables)

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Schedule of Lease, Cost

The components of lease expense were as follows:

TABLE 7.1

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in millions)	2024		2023		2024		2023
Operating lease cost	$	9	$	8	$	19	$	16
Variable lease cost	2		1		3		2
Finance lease cost	1		1		2		2
Total lease cost	$	12	$	10	$	24	$	20

Schedule of Leases, Other Information

Other information related to leases is as follows:

TABLE 7.2

	Six Months Ended June 30,
(dollars in millions)	2024			2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	15		$	7
Operating cash flows from finance leases	$	1		$	—
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	25		$	—
Finance leases	$	4		$	—
Weighted average remaining lease term (years):
Operating leases	11.00			9.11
Finance leases	19.00			19.97
Weighted average discount rate:
Operating leases	3.8		%	2.7		%
Finance leases	3.4		%	3.1		%

Schedule of Lessee, Operating Lease, Liability, Maturity

Future cash flows of lease liabilities are as follows:

TABLE 7.3

(in millions)	Operating Leases		Finance Leases		Total Leases
June 30, 2024
0 - 12 months	$	35	$	2	$	37
13 - 24 months	30		2		32
25 - 36 months	27		2		29
37 - 48 months	25		3		28
49 - 60 months	23		3		26
Later years	164		37		201
Total lease payments	304		49		353
Less: imputed interest	(64)		(13)		(77)
Present value of lease liabilities	$	240	$	36	$	276

Schedule of Finance Lease, Liability, Fiscal Year Maturity

Future cash flows of lease liabilities are as follows:

TABLE 7.3

(in millions)	Operating Leases		Finance Leases		Total Leases
June 30, 2024
0 - 12 months	$	35	$	2	$	37
13 - 24 months	30		2		32
25 - 36 months	27		2		29
37 - 48 months	25		3		28
49 - 60 months	23		3		26
Later years	164		37		201
Total lease payments	304		49		353
Less: imputed interest	(64)		(13)		(77)
Present value of lease liabilities	$	240	$	36	$	276

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VARIABLE INTEREST ENTITIES (Tables)

6 Months Ended

Jun. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Variable Interest Entities, Assets and Liabilities

The following table provides a summary of the assets and liabilities included in our Consolidated Financial Statements, as well as the maximum exposure to losses, associated with our interests related to VIEs for which we hold an interest, but are not the primary beneficiary.

TABLE 8.1

(in millions)	Total Assets		Total Liabilities		Maximum Exposure to Loss
June 30, 2024
Trust preferred securities (1)	$	3	$	73	$	—
Tax credit partnerships	174		81		174
Other investments	28		—		28
Total	$	205	$	154	$	202
December 31, 2023
Trust preferred securities (1)	$	3	$	73	$	—
Tax credit partnerships	143		62		143
Other investments	40		6		40
Total	$	186	$	141	$	183
(1) Represents our investment in unconsolidated subsidiaries.

Schedule of Affordable Housing, Historic And New Market Tax Credit Partnerships

The following table presents the balances of our LIHTC, HTC and NMTC investments and related unfunded commitments:

TABLE 8.2

(in millions)	June 30, 2024		December 31, 2023
Tax credit investments included in other assets	$	93	$	81
Unfunded tax credit investments	81		62

Schedule of Low Income Housing Tax Credits, Income Statement Effect

The following table summarizes the impact of these tax credit investments on the provision for income taxes in our Consolidated Statements of Income:

TABLE 8.3

	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2024		2023		2024		2023
Provision for income taxes:
Amortization of tax credit investments under proportional method	$	6	$	4	$	11	$	8
Tax credits from tax credit investments	(6)		(4)		(11)		(8)
Other tax benefits related to tax credit investments	(1)		—		(2)		(1)
Total impact on provision for income taxes	$	(1)	$	—	$	(2)	$	(1)

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BORROWINGS (Tables)

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Schedule of Short-Term Borrowings

Following is a summary of short-term borrowings:

TABLE 9.1

(in millions)	June 30, 2024		December 31, 2023
Securities sold under repurchase agreements	$	201	$	233
Federal Home Loan Bank advances	2,990		1,900
Federal funds purchased	298		260
Subordinated notes	127		113
Total short-term borrowings	$	3,616	$	2,506

Schedule of Long-term Borrowings

Following is a summary of long-term borrowings:

TABLE 9.2

(in millions)	June 30, 2024		December 31, 2023
Federal Home Loan Bank advances	$	1,250	$	1,200
Senior notes	349		349
Subordinated notes	77		82
Junior subordinated debt	73		73
Other subordinated debt	267		267
Total long-term borrowings	$	2,016	$	1,971

Schedule of Senior and Other Subordinated Debt

The following table provides information relating to our senior notes and other subordinated debt as of June 30, 2024. The subordinated notes are eligible for treatment as tier 2 capital for regulatory capital purposes.

TABLE 9.3

(dollars in millions)	Aggregate Principal Amount Issued		Net Proceeds (5)		Carrying Value		Stated Maturity Date	Interest Rate
Senior Notes:
5.150% Senior Notes due August 25, 2025	$	350	$	347	$	349	8/25/2025	5.150	%
Total senior notes	350		347		349
Other Subordinated Debt:
7.984% Fixed-To-Floating Rate Subordinated Notes due 2029 (1)	120		118		119		2/14/2029	7.984	%
4.875% Subordinated Notes due 2025	100		98		100		10/2/2025	4.875	%
8.620% Fixed-To-Floating Rate Subordinated Notes due December 6, 2028 (2) (4)	25		26		24		12/6/2028	8.620	%
5.000% Fixed-To-Floating Rate Subordinated Note due May 29, 2030 (3) (4)	25		24		24		5/29/2030	5.000	%
Total other subordinated debt	270		266		267
Total	$	620	$	613	$	616

(1) Floating rate effective February 14, 2024, determined by the Benchmark Replacement (three-month CME term SOFR plus a tenor spread adjustment of 26 basis points) plus 240 basis points.

(2) Floating rate effective December 6, 2023, determined by the Benchmark Replacement (three-month CME term SOFR plus a tenor spread adjustment of 26 basis points) plus 302 basis points.

(3) Fixed rate until May 29, 2025, at which time it converts to a floating rate determined by three-month SOFR plus 464 basis points.

(4) Assumed from an acquisition and adjusted to fair value at the time of acquisition.

(5) After deducting underwriting discounts and commissions and offering costs. For the debt assumed from acquisitions, this is the fair value of the debt at the time of the acquisition.

Schedule of Junior Subordinated Debt Trusts

The following table provides information relating to the Trusts as of June 30, 2024:

TABLE 9.4

(dollars in millions)	Trust Preferred Securities		Common Securities		Junior Subordinated Debt		Stated Maturity Date	Interest Rate		Rate Reset Factor
F.N.B. Statutory Trust II	$	22	$	1	$	22	6/15/2036	7.25	%	SOFR + 165 bps
Yadkin Valley Statutory Trust I	25		1		23		12/15/2037	6.92	%	SOFR + 132 bps
FNB Financial Services Capital Trust I	25		1		23		9/30/2035	7.05	%	SOFR + 146 bps
Patapsco Statutory Trust I	5		—		5		12/15/2035	7.08	%	SOFR + 148 bps
Total	$	77	$	3	$	73

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

6 Months Ended

Jun. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts and Gross Fair Values of Derivative Assets and Derivative Liabilities

The following table presents notional amounts and gross fair values of our derivative assets and derivative liabilities which are not offset in the Consolidated Balance Sheets:

TABLE 10.1

	June 30, 2024						December 31, 2023
	Notional		Fair Value				Notional		Fair Value
(in millions)	Amount		Asset		Liability		Amount		Asset		Liability
Gross Derivatives
Subject to master netting arrangements:
Interest rate contracts – designated	$	1,600	$	—	$	3	$	1,800	$	1	$	—
Interest rate swaps – not designated	5,806		104		16		5,660		74		35
Total subject to master netting arrangements	7,406		104		19		7,460		75		35
Not subject to master netting arrangements:
Interest rate swaps – not designated	5,806		16		336		5,660		35		289
Interest rate lock commitments – not designated	323		3		—		239		5		—
Forward delivery commitments – not designated	366		1		1		294		1		4
Credit risk contracts – not designated	762		—		—		629		—		—
Total not subject to master netting arrangements	7,257		20		337		6,822		41		293
Total	$	14,663	$	124	$	356	$	14,282	$	116	$	328

Schedule of Amounts Reclassified from Accumulated Other Comprehensive Income (AOCI)

The following table shows amounts reclassified from AOCI:

TABLE 10.2

	Amount of Gain (Loss) Recognized in OCI on Derivatives				Location of Gain (Loss) Reclassified from AOCI into Income	Amount of Gain (Loss) Reclassified from AOCI into Income
	Six Months Ended June 30,					Six Months Ended June 30,
(in millions)	2024		2023			2024		2023
Derivatives in cash flow hedging relationships:
Interest rate contracts	$	(15)	$	(13)	Interest income (expense)	$	(19)	$	(9)
					Other income	—		—

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The following table represents gains (losses) recognized in the Consolidated Statements of Income on cash flow hedging relationships:

TABLE 10.3

	Six months ended June 30,
	2024				2023
(in millions)	Interest Income - Loans and Leases		Interest Expense - Short-Term Borrowings		Interest Income - Loans and Leases		Interest Expense - Short-Term Borrowings
Total amounts of income and expense line items presented in the Consolidated Statements of Income (the effects of cash flow hedges are included in these line items)	$	975	$	60	$	823	$	32
The effects of cash flow hedging:
Gain (loss) on cash flow hedging relationships:
Interest rate contracts:
Amount of gain (loss) reclassified from AOCI into net income	(25)		6		(21)		12

Schedule of Derivative Financial Instruments on the Consolidated Statements of Income

The following table presents the effect of certain derivative financial instruments on the Consolidated Statements of Income:

TABLE 10.4

		Six Months Ended June 30,
(in millions)	Consolidated Statements of Income Location	2024		2023
Interest rate swaps	Non-interest income - other	$	—	$	—
Interest rate lock commitments	Mortgage banking operations	—		—
Forward delivery contracts	Mortgage banking operations	4		3
Credit risk contracts	Non-interest income - other	—		—

Schedule of Offsetting Assets and Liabilities

The following table presents a reconciliation of the net amounts of derivative assets and derivative liabilities presented in the Consolidated Balance Sheets to the net amounts that would result in the event of offset:

TABLE 10.5

			Amount Not Offset in the Consolidated Balance Sheets
(in millions)	Net Amount Presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral		Net Amount
June 30, 2024
Derivative Assets
Interest rate contracts:
Not designated	$	104	$	—	$	103	$	1
Total	$	104	$	—	$	103	$	1

Derivative Liabilities
Interest rate contracts:
Designated	$	3	$	—	$	3	$	—
Not designated	16		—		16		—
Total	$	19	$	—	$	19	$	—

December 31, 2023
Derivative Assets
Interest rate contracts:
Designated	$	1	$	—	$	1	$	—
Not designated	74		—		74		—
Total	$	75	$	—	$	75	$	—

Derivative Liabilities
Interest rate contracts:
Not designated	$	35	$	—	$	35	$	—
Total	$	35	$	—	$	35	$	—

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COMMITMENTS, CREDIT RISK AND CONTINGENCIES (Tables)

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Schedule of Off-Balance Sheet Credit Risk Information

Following is a summary of off-balance sheet credit risk information:

TABLE 11.1

(in millions)	June 30, 2024		December 31, 2023
Commitments to extend credit	$	14,103	$	13,656
Standby letters of credit	253		257

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STOCK INCENTIVE PLANS (Tables)

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Activity Relating to Restricted Stock Units

The following table summarizes the activity relating to restricted stock units during the periods indicated:

TABLE 12.1

	Six Months Ended June 30,
	2024			2023
	Units	Weighted Average Grant Price per Share		Units	Weighted Average Grant Price per Share
Unvested units outstanding at beginning of period	3,502,598	$	12.89	4,821,182	$	10.30
Granted	1,249,783	14.04		1,354,017	12.74
Net adjustment	341,857	—		306,917	8.43
Vested	(1,499,097)	12.76		(2,303,266)	7.99
Forfeited/expired/canceled	(27,777)	12.25		(578,493)	8.13
Dividend reinvestment	—	—		74,505	12.16
Unvested units outstanding at end of period	3,567,364	13.36		3,674,862	12.87

Schedule of Certain Information Related to Restricted Stock Units

The following table provides certain information related to restricted stock units:

TABLE 12.2

(in millions)	Six Months Ended June 30,
	2024		2023
Stock-based compensation expense	$	12	$	13
Tax benefit related to stock-based compensation expense	3		3
Fair value of units vested	19		30

Schedule of Components of Restricted Stock Units

The components of the restricted stock units as of June 30, 2024 are as follows:

TABLE 12.3

(dollars in millions)	Service- Based Units		Performance- Based Units		Total
Unvested restricted stock units	2,614,032		953,332		3,567,364
Unrecognized compensation expense	$	15	$	1	$	16
Intrinsic value	$	36	$	13	$	49
Weighted average remaining life (in years)	1.96		1.72		1.89

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INCOME TAXES (Tables)

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense

Federal and state income tax expense and the statutory tax rate and the actual effective tax rate consist of the following:

TABLE 13.1

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in millions)	2024			2023			2024			2023
Current income taxes:
Federal taxes	$	30		$	36		$	47		$	67
State taxes	2			3			4			5
Total current income taxes	32			39			51			72
Deferred income taxes:
Federal taxes	1			(3)			14			(1)
State taxes	1			1			3			1
Total deferred income taxes	2			(2)			17			—
Total income taxes	$	34		$	37		$	68		$	72
Statutory federal tax rate	21.0		%	21.0		%	21.0		%	21.0		%
Effective tax rate	21.6			20.5			21.6			20.0

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OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Schedule of Changes in AOCI, Net of Tax, by Component

The following table presents changes in AOCI, net of tax, by component:

TABLE 14.1

(in millions)	Unrealized Net Gains (Losses) on Debt Securities Available for Sale		Unrealized Net Gains (Losses) on Derivative Instruments		Unrecognized Pension and Postretirement Obligations		Total
Six Months Ended June 30, 2024
Balance at beginning of period	$	(160)	$	(33)	$	(42)	$	(235)
Other comprehensive (loss) income before reclassifications	(11)		(12)		—		(23)
Amounts reclassified from AOCI	—		15		—		15
Net current period other comprehensive (loss) income	(11)		3		—		(8)
Balance at end of period	$	(171)	$	(30)	$	(42)	$	(243)

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EARNINGS PER COMMON SHARE (Tables)

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted Earnings Per Common Share

The following table sets forth the computation of basic and diluted earnings per common share:

TABLE 15.1

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in millions, except per share data)	2024		2023		2024		2023
Net income	$	123	$	142	$	245	$	289
Less: Preferred stock dividends	—		2		6		4
Net income available to common stockholders	$	123	$	140	$	239	$	285
Basic weighted average common shares outstanding	361,754,312		360,124,415		361,500,357		360,489,630
Net effect of dilutive stock options and restricted stock	946,921		2,501,767		1,159,902		3,286,929
Diluted weighted average common shares outstanding	362,701,233		362,626,182		362,660,259		363,776,559
Earnings per common share:
Basic	$	0.34	$	0.39	$	0.66	$	0.79
Diluted	$	0.34	$	0.39	$	0.66	$	0.78

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CASH FLOW INFORMATION (Tables)

6 Months Ended

Jun. 30, 2024

Supplemental Cash Flow Elements [Abstract]

Schedule of Supplemental Cash Flow Information

Following is a summary of supplemental cash flow information:

TABLE 16.1

	Six Months Ended June 30,
(in millions)	2024		2023
Interest paid on deposits and other borrowings	$	461	$	238
Income taxes paid	26		67
Transfers of loans to other real estate owned	1		1
Loans transferred to portfolio from held for sale	12		26

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BUSINESS SEGMENTS (Tables)

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Schedule of Financial Information for Segments of FNB

The following table provides financial information for these segments of FNB. The information provided under the caption “Parent and Other” represents operations not considered to be reportable segments and/or general operating expenses of FNB, and includes the parent company, other non-bank subsidiaries and eliminations and adjustments to reconcile to the Consolidated Financial Statements.

TABLE 17.1

(in millions)	Community Banking		Wealth Management		Insurance		Parent and Other		Consolidated
At or for the Three Months Ended June 30, 2024
Interest income	$	555	$	—	$	—	$	2	$	557
Interest expense	233		—		—		8		241
Net interest income	322		—		—		(6)		316
Provision for credit losses	20		—		—		—		20
Non-interest income	65		20		6		(3)		88
Non-interest expense (1)	199		14		6		3		222
Amortization of intangibles	5		—		—		—		5
Income tax expense (benefit)	36		1		—		(3)		34
Net income (loss)	127		5		—		(9)		123
Total assets	47,421		42		36		216		47,715
Total intangibles	2,503		9		25		—		2,537
At or for the Three Months Ended June 30, 2023
Interest income	$	483	$	—	$	—	$	1	$	484
Interest expense	147		—		—		8		155
Net interest income	336		—		—		(7)		329
Provision for credit losses	19		—		—		—		19
Non-interest income	57		18		7		(1)		81
Non-interest expense (1)	187		13		5		2		207
Amortization of intangibles	5		—		—		—		5
Income tax expense (benefit)	39		1		1		(4)		37
Net income (loss)	143		4		1		(6)		142
Total assets	44,629		39		32		78		44,778
Total intangibles	2,521		9		26		—		2,556
(1) Excludes amortization of intangibles, which is presented separately.

(in millions)	Community Banking		Wealth Management		Insurance		Parent and Other		Consolidated
At or for the Six Months Ended June 30, 2024
Interest income	$	1,097	$	—	$	—	$	3	$	1,100
Interest expense	451		—		—		14		465
Net interest income	646		—		—		(11)		635
Provision for credit losses	34		—		—		—		34
Non-interest income	127		40		13		(4)		176
Non-interest expense (1)	410		27		10		8		455
Amortization of intangibles	9		—		—		—		9
Income tax expense (benefit)	70		3		1		(6)		68
Net income (loss)	250		10		2		(17)		245
Total assets	47,421		42		36		216		47,715
Total intangibles	2,503		9		25		—		2,537
At or for the Six Months Ended June 30, 2023
Interest income	$	925	$	—	$	—	$	3	$	928
Interest expense	245		—		—		17		262
Net interest income	680		—		—		(14)		666
Provision for credit losses	33		—		—		—		33
Non-interest income	112		36		14		(2)		160
Non-interest expense (1)	382		26		9		5		422
Amortization of intangibles	10		—		—		—		10
Income tax expense (benefit)	77		2		1		(8)		72
Net income (loss)	290		8		4		(13)		289
Total assets	44,629		39		32		78		44,778
Total intangibles	2,521		9		26		—		2,556

(1) Excludes amortization of intangibles, which is presented separately.

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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of Balances of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis:

TABLE 18.1

(in millions)	Level 1		Level 2		Level 3		Total
June 30, 2024
Assets Measured at Fair Value
Debt securities available for sale
U.S. Treasury	$	197	$	—	$	—	$	197
U.S. government agencies	—		67		—		67
U.S. government-sponsored entities	—		298		—		298
Residential MBS:
Agency MBS	—		886		—		886
Agency collateralized mortgage obligations	—		758		—		758
Agency commercial MBS	—		1,092		—		1,092
States of the U.S. and political subdivisions (municipals)	—		26		—		26
Other debt securities	—		40		—		40
Total debt securities available for sale	197		3,167		—		3,364
Loans held for sale	—		128		—		128
Loans receivable	—		—		47		47
Derivative financial instruments
Trading	—		120		—		120
Not for trading	—		1		3		4
Total derivative financial instruments	—		121		3		124
Total assets measured at fair value on a recurring basis	$	197	$	3,416	$	50	$	3,663
Liabilities Measured at Fair Value
Derivative financial instruments
Trading	$	—	$	353	$	—	$	353
Not for trading	—		3		—		3
Total derivative financial instruments	—		356		—		356
Total liabilities measured at fair value on a recurring basis	$	—	$	356	$	—	$	356

(in millions)	Level 1		Level 2		Level 3		Total
December 31, 2023
Assets Measured at Fair Value
Debt securities available for sale
U.S. Treasury	$	420	$	—	$	—	$	420
U.S. government agencies	—		79		—		79
U.S. government-sponsored entities	—		223		—		223
Residential MBS:
Agency MBS	—		752		—		752
Agency collateralized mortgage obligations	—		832		—		832
Agency commercial MBS	—		884		—		884
States of the U.S. and political subdivisions (municipals)	—		27		—		27
Other debt securities	—		37		—		37
Total debt securities available for sale	420		2,834		—		3,254
Loans held for sale	—		150		—		150
Derivative financial instruments
Trading	—		109		—		109
Not for trading	—		2		5		7
Total derivative financial instruments	—		111		5		116
Total assets measured at fair value on a recurring basis	$	420	$	3,095	$	5	$	3,520
Liabilities Measured at Fair Value
Derivative financial instruments
Trading	$	—	$	324	$	—	$	324
Not for trading	—		4		—		4
Total derivative financial instruments	—		328		—		328
Total liabilities measured at fair value on a recurring basis	$	—	$	328	$	—	$	328

Schedule of Additional Information about Assets Measured at Fair Value on Recurring Basis

The following table presents additional information about assets measured at fair value on a recurring basis and for which we have utilized Level 3 inputs to determine fair value:

TABLE 18.2

(in millions)	Other Debt Securities		Loans Receivable		Interest Rate Lock Commitments		Total
Six Months Ended June 30, 2024
Balance at beginning of period	$	—	$	—	$	5	$	5
Purchases, issuances, sales and settlements:
Issuances	—		—		3		3
Settlements	—		—		(5)		(5)
Transfers into Level 3	—		47		—		47
Balance at end of period	$	—	$	47	$	3	$	50
Year Ended December 31, 2023
Balance at beginning of period	$	—	$	—	$	—	$	—
Purchases, issuances, sales and settlements:
Issuances	—		—		6		6
Settlements	—		—		(1)		(1)
Balance at end of period	$	—	$	—	$	5	$	5

Schedule of Additional Information about Assets Measured at Fair Value on Non-Recurring Basis

For assets measured at fair value on a non-recurring basis still held at the Balance Sheet date, the following table provides the hierarchy level and the fair value of the related assets or portfolios:

TABLE 18.3

(in millions)	Level 1		Level 2		Level 3		Total
June 30, 2024
Collateral dependent loans	$	—	$	—	$	35	$	35
Other assets - MSRs	—		—		1		1
December 31, 2023
Collateral dependent loans	$	—	$	—	$	35	$	35
Indirect installment loans held for sale	—		—		338		338
Other assets - MSRs	—		—		12		12
Other assets - SBA servicing asset	—		—		1		1
Other real estate owned	—		—		2		2

Schedule of Fair Values of Financial Instruments

The fair values of our financial instruments are as follows:

TABLE 18.4

					Fair Value Measurements
(in millions)	Carrying Amount		Fair  Value		Level 1		Level 2		Level 3
June 30, 2024
Financial Assets
Cash and cash equivalents	$	1,880	$	1,880	$	1,880	$	—	$	—
Debt securities available for sale	3,364		3,364		197		3,167		—
Debt securities held to maturity	3,893		3,532		—		3,532		—
Net loans and leases, including loans held for sale	33,470		31,998		—		128		31,870
Loan servicing rights	67		79		—		—		79
Derivative assets	124		124		—		121		3
Accrued interest receivable	178		178		178		—		—
Financial Liabilities
Deposits	34,994		34,938		28,107		6,831		—
Short-term borrowings	3,616		3,633		3,633		—		—
Long-term borrowings	2,016		2,043		—		1,274		769
Derivative liabilities	356		356		—		356		—
Accrued interest payable	73		73		73		—		—
December 31, 2023
Financial Assets
Cash and cash equivalents	$	1,576	$	1,576	$	1,576	$	—	$	—
Debt securities available for sale	3,254		3,254		420		2,834		—
Debt securities held to maturity	3,911		3,593		—		3,593		—
Net loans and leases, including loans held for sale	32,405		30,641		—		150		30,491
Loan servicing rights	61		73		—		—		73
Derivative assets	116		116		—		111		5
Accrued interest receivable	160		160		160		—		—
Financial Liabilities
Deposits	34,711		34,654		28,496		6,158		—
Short-term borrowings	2,506		2,505		2,505		—		—
Long-term borrowings	1,971		1,928		—		1,192		736
Derivative liabilities	328		328		—		328		—
Accrued interest payable	69		69		69		—		—

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NATURE OF OPERATIONS (Details)	Jun. 30, 2024 state branch
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of states, company operating financial services | state	7
Number of branches | branch	345

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NEW ACCOUNTING STANDARDS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounting Standards Update [Extensible Enumeration]	Accounting Standards Update 2023-02 [Member]
Stockholders' equity attributable to parent	$ 6,050.0	$ 6,090.0	$ 6,006.0	$ 5,818.0	$ 5,788.0	$ 5,653.0
Adoption of new accounting standard
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders' equity attributable to parent	(1.0)
Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders' equity attributable to parent	1,669.0	$ 1,820.0	$ 1,740.0	$ 1,564.0	$ 1,471.0	$ 1,370.0
Retained Earnings | Adoption of new accounting standard
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders' equity attributable to parent	$ (0.5)

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SECURITIES - Additional Information (Details) - USD ($)	3 Months Ended	6 Months Ended
	Dec. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Schedule Of Securities [Line Items]
Debt securities available for sale, allowance for credit losses	$ 0	$ 0
Debt securities, available-for-sale, accrued interest, after allowance for credit loss	9,600,000	13,300,000
Debt securities held to maturity, allowance for credit losses	280,000	270,000
Debt securities, held-to-maturity, accrued interest, after allowance for credit loss	14,700,000	14,100,000
Debt securities, available-for-sale, realized loss (gain)	67,400,000	0	$ 0
Debt securities, available for sale, sold	648,700,000
Municipal bond portfolio, value		$ 1,000,000,000.0
Percentage of formal credit enhancement insurance of municipalities		61.00%
Corporate bond portfolio, at carrying value		$ 56,100,000
Municipal Bonds | Weighted Average
Schedule Of Securities [Line Items]
Average holding size of securities in bond portfolio		$ 2,500,000
Municipal Bonds | Credit Concentration Risk | General Obligation Bonds | A Rating or Better | Minimum
Schedule Of Securities [Line Items]
Percentage of portfolio		99.00%
Municipal Bonds | Geographic Concentration Risk | Pennsylvania, Ohio and Maryland
Schedule Of Securities [Line Items]
Percentage of portfolio		60.00%
Corporate Bond | Weighted Average
Schedule Of Securities [Line Items]
Average holding size of securities in bond portfolio		$ 3,100,000
US government
Schedule Of Securities [Line Items]
Unrealized loss on debt securities, available-for-sale and held-to-maturity, backed or sponsored percentage		85.00%
States of the U.S. and political subdivisions (municipals)
Schedule Of Securities [Line Items]
Debt securities held to maturity, allowance for credit losses	60,000.00	$ 60,000.00
Other debt securities
Schedule Of Securities [Line Items]
Debt securities held to maturity, allowance for credit losses	$ 220,000	$ 210,000

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SECURITIES - Schedule of Amortized Cost and Fair Value of Securities Available for Sale (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 3,585	$ 3,460
Gross Unrealized Gains	4	10
Gross Unrealized Losses	(225)	(216)
Fair  Value	3,364	3,254
U.S. Treasury
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	199	422
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(2)	(2)
Fair  Value	197	420
U.S. government agencies
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	67	78
Gross Unrealized Gains	0	1
Gross Unrealized Losses	0	0
Fair  Value	67	79
U.S. government-sponsored entities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	301	227
Gross Unrealized Gains	1	0
Gross Unrealized Losses	(4)	(4)
Fair  Value	298	223
Agency MBS
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	951	814
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(65)	(62)
Fair  Value	886	752
Agency collateralized mortgage obligations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	871	946
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(113)	(114)
Fair  Value	758	832
Agency commercial MBS
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	1,127	905
Gross Unrealized Gains	3	9
Gross Unrealized Losses	(38)	(30)
Fair  Value	1,092	884
States of the U.S. and political subdivisions (municipals)
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	28	30
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(2)	(3)
Fair  Value	26	27
Other debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	41	38
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(1)	(1)
Fair  Value	$ 40	$ 37

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SECURITIES - Schedule of Amortized Cost and Fair Value of Securities Held to Maturity (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Investment Securities Held To Maturity [Line Items]
Amortized Cost	$ 3,893	$ 3,911
Gross Unrealized Gains	3	8
Gross Unrealized Losses	(364)	(326)
Fair  Value	3,532	3,593
U.S. Treasury
Investment Securities Held To Maturity [Line Items]
Amortized Cost	1
Gross Unrealized Gains	0
Gross Unrealized Losses	0
Fair  Value	1
U.S. government agencies
Investment Securities Held To Maturity [Line Items]
Amortized Cost	1	1
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair  Value	1	1
U.S. government-sponsored entities
Investment Securities Held To Maturity [Line Items]
Amortized Cost	28	68
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair  Value	28	68
Agency MBS
Investment Securities Held To Maturity [Line Items]
Amortized Cost	977	1,057
Gross Unrealized Gains	1	2
Gross Unrealized Losses	(106)	(101)
Fair  Value	872	958
Agency collateralized mortgage obligations
Investment Securities Held To Maturity [Line Items]
Amortized Cost	769	824
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(108)	(104)
Fair  Value	661	720
Agency commercial MBS
Investment Securities Held To Maturity [Line Items]
Amortized Cost	1,094	929
Gross Unrealized Gains	2	4
Gross Unrealized Losses	(50)	(43)
Fair  Value	1,046	890
States of the U.S. and political subdivisions (municipals)
Investment Securities Held To Maturity [Line Items]
Amortized Cost	1,007	1,017
Gross Unrealized Gains	0	2
Gross Unrealized Losses	(98)	(77)
Fair  Value	909	942
Other debt securities
Investment Securities Held To Maturity [Line Items]
Amortized Cost	16	15
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(2)	(1)
Fair  Value	$ 14	$ 14

XML

SECURITIES - Schedule of Amortized Cost and Fair Value of Securities, by Contractual Maturities (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Schedule Of Securities [Line Items]
Available for sale, due in one year or less, amortized cost	$ 112
Available for sale, due after one year but within five years, amortized cost	461
Available for sale, due after five years but within ten years, amortized cost	33
Available for sale, due after ten years, amortized cost	30
Available for sale, with contractual maturities, amortized cost	636
Amortized Cost	3,585	$ 3,460
Available for sale, due in one year or less, fair value	110
Available for sale, due after one year but within five years, fair value	456
Available for sale, due after five years but within ten years, fair value	32
Available for sale, due after ten years, fair value	30
Available for sale, with contractual maturities, fair value	628
Fair Value	3,364	3,254
Held to maturity, due in one year or less, amortized cost	3
Held to maturity, due after one year but within five years, amortized cost	86
Held to maturity, due after five years but within ten years, amortized cost	224
Held to maturity, due after ten years, amortized cost	740
Held to maturity, with contractual maturities, amortized cost	1,053
Amortized Cost	3,893	3,911
Held to maturity, due in one year or less, fair value	3
Held to maturity, due after one year but within five years, fair value	82
Held to maturity, due after five years but within ten years, fair value	207
Held to maturity, due after ten years, fair value	661
Held to maturity, with contractual maturities, fair value	953
Fair Value	3,532	3,593
Agency MBS
Schedule Of Securities [Line Items]
Available-for-sale, amortized cost	951
Amortized Cost	951	814
Available for sale, fair value	886
Fair Value	886	752
Held to maturity, amortized cost	977
Amortized Cost	977	1,057
Held to maturity, fair value	872
Fair Value	872	958
Agency collateralized mortgage obligations
Schedule Of Securities [Line Items]
Available-for-sale, amortized cost	871
Amortized Cost	871	946
Available for sale, fair value	758
Fair Value	758	832
Held to maturity, amortized cost	769
Amortized Cost	769	824
Held to maturity, fair value	661
Fair Value	661	720
Agency commercial MBS
Schedule Of Securities [Line Items]
Available-for-sale, amortized cost	1,127
Amortized Cost	1,127	905
Available for sale, fair value	1,092
Fair Value	1,092	884
Held to maturity, amortized cost	1,094
Amortized Cost	1,094	929
Held to maturity, fair value	1,046
Fair Value	$ 1,046	$ 890

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SECURITIES - Schedule of Securities Pledged as Collateral (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Securities pledged (carrying value), to secure public deposits, trust deposits and for other purposes as required by law	$ 5,805	$ 6,190
Securities pledged (carrying value), as collateral for short-term borrowings	$ 225	$ 250
Securities pledged as a percent of total securities	83.10%	89.90%

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SECURITIES - Schedule of Fair Values and Unrealized Losses of Impaired Securities, by Length of Impairment (Details) $ in Millions	Jun. 30, 2024 USD ($) security	Dec. 31, 2023 USD ($) security
Schedule Of Securities [Line Items]
Debt securities, available-for-sale, less than 12 months, number of positions | security	27	6
Debt securities, available-for-sale, 12 months or longer, number of positions | security	234	236
Debt securities, available-for-sale, number of positions | security	261	242
Debt securities, available-for-sale, less than 12 months, fair value	$ 801	$ 70
Debt securities, available-for-sale, 12 months or longer, fair value	2,050	2,235
Debt securities, available-for-sale, fair value	2,851	2,305
Debt securities, available-for-sale, less than 12 months, unrealized losses	(6)	0
Debt securities, available-for-sale, 12 months or longer, unrealized losses	(219)	(216)
Debt securities, available-for-sale, unrealized losses	$ (225)	$ (216)
U.S. Treasury
Schedule Of Securities [Line Items]
Debt securities, available-for-sale, less than 12 months, number of positions | security	1	0
Debt securities, available-for-sale, 12 months or longer, number of positions | security	2	2
Debt securities, available-for-sale, number of positions | security	3	2
Debt securities, available-for-sale, less than 12 months, fair value	$ 49	$ 0
Debt securities, available-for-sale, 12 months or longer, fair value	74	73
Debt securities, available-for-sale, fair value	123	73
Debt securities, available-for-sale, less than 12 months, unrealized losses	0	0
Debt securities, available-for-sale, 12 months or longer, unrealized losses	(2)	(2)
Debt securities, available-for-sale, unrealized losses	$ (2)	$ (2)
U.S. government agencies
Schedule Of Securities [Line Items]
Debt securities, available-for-sale, less than 12 months, number of positions | security	0	2
Debt securities, available-for-sale, 12 months or longer, number of positions | security	13	12
Debt securities, available-for-sale, number of positions | security	13	14
Debt securities, available-for-sale, less than 12 months, fair value	$ 0	$ 4
Debt securities, available-for-sale, 12 months or longer, fair value	31	36
Debt securities, available-for-sale, fair value	31	40
Debt securities, available-for-sale, less than 12 months, unrealized losses	0	0
Debt securities, available-for-sale, 12 months or longer, unrealized losses	0	0
Debt securities, available-for-sale, unrealized losses	$ 0	$ 0
U.S. government-sponsored entities
Schedule Of Securities [Line Items]
Debt securities, available-for-sale, less than 12 months, number of positions | security	3	1
Debt securities, available-for-sale, 12 months or longer, number of positions | security	7	7
Debt securities, available-for-sale, number of positions | security	10	8
Debt securities, available-for-sale, less than 12 months, fair value	$ 74	$ 25
Debt securities, available-for-sale, 12 months or longer, fair value	123	123
Debt securities, available-for-sale, fair value	197	148
Debt securities, available-for-sale, less than 12 months, unrealized losses	0	0
Debt securities, available-for-sale, 12 months or longer, unrealized losses	(4)	(4)
Debt securities, available-for-sale, unrealized losses	$ (4)	$ (4)
Agency MBS
Schedule Of Securities [Line Items]
Debt securities, available-for-sale, less than 12 months, number of positions | security	6	0
Debt securities, available-for-sale, 12 months or longer, number of positions | security	104	104
Debt securities, available-for-sale, number of positions | security	110	104
Debt securities, available-for-sale, less than 12 months, fair value	$ 179	$ 0
Debt securities, available-for-sale, 12 months or longer, fair value	659	750
Debt securities, available-for-sale, fair value	838	750
Debt securities, available-for-sale, less than 12 months, unrealized losses	(1)	0
Debt securities, available-for-sale, 12 months or longer, unrealized losses	(64)	(62)
Debt securities, available-for-sale, unrealized losses	$ (65)	$ (62)
Agency collateralized mortgage obligations
Schedule Of Securities [Line Items]
Debt securities, available-for-sale, less than 12 months, number of positions | security	0	0
Debt securities, available-for-sale, 12 months or longer, number of positions | security	69	71
Debt securities, available-for-sale, number of positions | security	69	71
Debt securities, available-for-sale, less than 12 months, fair value	$ 0	$ 0
Debt securities, available-for-sale, 12 months or longer, fair value	758	832
Debt securities, available-for-sale, fair value	758	832
Debt securities, available-for-sale, less than 12 months, unrealized losses	0	0
Debt securities, available-for-sale, 12 months or longer, unrealized losses	(113)	(114)
Debt securities, available-for-sale, unrealized losses	$ (113)	$ (114)
Agency commercial MBS
Schedule Of Securities [Line Items]
Debt securities, available-for-sale, less than 12 months, number of positions | security	16	1
Debt securities, available-for-sale, 12 months or longer, number of positions | security	20	20
Debt securities, available-for-sale, number of positions | security	36	21
Debt securities, available-for-sale, less than 12 months, fair value	$ 494	$ 32
Debt securities, available-for-sale, 12 months or longer, fair value	361	377
Debt securities, available-for-sale, fair value	855	409
Debt securities, available-for-sale, less than 12 months, unrealized losses	(5)	0
Debt securities, available-for-sale, 12 months or longer, unrealized losses	(33)	(30)
Debt securities, available-for-sale, unrealized losses	$ (38)	$ (30)
States of the U.S. and political subdivisions (municipals)
Schedule Of Securities [Line Items]
Debt securities, available-for-sale, less than 12 months, number of positions | security	0	0
Debt securities, available-for-sale, 12 months or longer, number of positions | security	12	13
Debt securities, available-for-sale, number of positions | security	12	13
Debt securities, available-for-sale, less than 12 months, fair value	$ 0	$ 0
Debt securities, available-for-sale, 12 months or longer, fair value	26	27
Debt securities, available-for-sale, fair value	26	27
Debt securities, available-for-sale, less than 12 months, unrealized losses	0	0
Debt securities, available-for-sale, 12 months or longer, unrealized losses	(2)	(3)
Debt securities, available-for-sale, unrealized losses	$ (2)	$ (3)
Other debt securities
Schedule Of Securities [Line Items]
Debt securities, available-for-sale, less than 12 months, number of positions | security	1	2
Debt securities, available-for-sale, 12 months or longer, number of positions | security	7	7
Debt securities, available-for-sale, number of positions | security	8	9
Debt securities, available-for-sale, less than 12 months, fair value	$ 5	$ 9
Debt securities, available-for-sale, 12 months or longer, fair value	18	17
Debt securities, available-for-sale, fair value	23	26
Debt securities, available-for-sale, less than 12 months, unrealized losses	0	0
Debt securities, available-for-sale, 12 months or longer, unrealized losses	(1)	(1)
Debt securities, available-for-sale, unrealized losses	$ (1)	$ (1)

XML

LOANS AND LEASES - Additional Information (Details)	6 Months Ended		12 Months Ended
	Jun. 30, 2024 USD ($) state	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest receivable	$ 141,600,000		$ 128,600,000
Discount remaining	$ 35,800,000		42,600,000
Number of states, company operating financial services | state	7
Loan modification, accrued interest receivable	$ 50,000.00	$ 80,000.00
Loan modification, additional funds	0
Pooled reserves for all other classes of loans	$ 4,100,000		3,800,000
Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due period for loan to be in default	90 days
Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due period for loan to be in default	12 months
Total commercial loans and leases
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans modified, specific reserves	$ 500,000		5,300,000
Loans modified, pooled reserves	1,900,000		2,000,000.0
Total commercial loans and leases | Commercial loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, collateral dependent	65,600,000
Threshold for loans whose terms have been modified in a trouble debt restructuring, non accrual	1,000,000.0
Residential Mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value of OREO through foreclosure	1,200,000		1,200,000
Mortgage loans on real estate, foreclosure	$ 12,900,000		$ 9,400,000

XML

LOANS AND LEASES - Schedule of Net of Unearned Income (Details) - USD ($) $ in Millions		Jun. 30, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amortized cost loans and leases, carrying amount	[1]	$ 33,757	$ 32,323
Total commercial loans and leases
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amortized cost loans and leases, carrying amount		21,089	20,496
Total commercial loans and leases | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amortized cost loans and leases, carrying amount		12,664	12,305
Total commercial loans and leases | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amortized cost loans and leases, carrying amount		7,597	7,482
Total commercial loans and leases | Commercial leases
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amortized cost loans and leases, carrying amount		683	599
Total commercial loans and leases | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amortized cost loans and leases, carrying amount		145	110
Total consumer loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amortized cost loans and leases, carrying amount		12,668	11,827
Total consumer loans | Direct installment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amortized cost loans and leases, carrying amount		2,700	2,741
Total consumer loans | Residential mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amortized cost loans and leases, carrying amount		7,459	6,640
Total consumer loans | Indirect installment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amortized cost loans and leases, carrying amount		1,188	1,149
Total consumer loans | Consumer lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amortized cost loans and leases, carrying amount		$ 1,321	$ 1,297

[1] Amount represents loans for which we have elected the fair value option. See Note 18.

XML

LOANS AND LEASES - Schedule of Commercial Real Estate Loans (Details) - Commercial real estate - Loan Portfolio Diversification Risk	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Percent owner-occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Percent of total loans and leases	29.50%	29.00%
Percent non-owner-occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Percent of total loans and leases	70.50%	71.00%

XML

LOANS AND LEASES - Schedule of Origination Year (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended		12 Months Ended
		Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		$ 2,739.0		$ 2,739.0		$ 5,486.0
Fiscal year before current fiscal year		5,427.0		5,427.0		6,624.0
Two years before current fiscal year		6,396.0		6,396.0		6,015.0
Three years before current fiscal year		5,672.0		5,672.0		3,537.0
Four years before current fiscal year		3,236.0		3,236.0		2,255.0
Prior		6,700.0		6,700.0		5,148.0
Revolving Loans Amortized Cost Basis		3,587.0		3,587.0		3,258.0
Total Loans and Leases	[1]	33,757.0		33,757.0		32,323.0
Current fiscal year, charge-off				0.0		0.8
Fiscal year before current fiscal year, charge-off				1.8		5.2
Two years before current fiscal year, charge-off				4.3		5.2
Three years before current fiscal year, charge-off				3.0		2.4
Four years before current fiscal year, charge-off				1.3		2.7
Prior, charge-off				17.4		64.8
Revolving Loans Amortized Cost Basis, charge-off				0.0		0.0
Total Loans and Leases, charge-off				27.8		81.1
Current
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans and Leases		33,543.0		33,543.0		32,097.0
Past due
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans and Leases		214.0		214.0		226.0
Total commercial loans and leases
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		1,394.0		1,394.0		3,371.0
Fiscal year before current fiscal year		3,303.0		3,303.0		3,762.0
Two years before current fiscal year		3,693.0		3,693.0		3,449.0
Three years before current fiscal year		3,255.0		3,255.0		2,238.0
Four years before current fiscal year		2,026.0		2,026.0		1,726.0
Prior		4,912.0		4,912.0		3,740.0
Revolving Loans Amortized Cost Basis		2,506.0		2,506.0		2,210.0
Total Loans and Leases		21,089.0		21,089.0		20,496.0
Total Loans and Leases, charge-off		8.9	$ 8.9	21.0	$ 22.0
Total commercial loans and leases | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans and Leases		20,981.0		20,981.0		20,378.0
Total commercial loans and leases | Past due
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans and Leases		108.0		108.0		118.0
Total commercial loans and leases | Commercial real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		715.0		715.0		1,523.0
Fiscal year before current fiscal year		1,600.0		1,600.0		2,226.0
Two years before current fiscal year		2,344.0		2,344.0		2,401.0
Three years before current fiscal year		2,341.0		2,341.0		1,598.0
Four years before current fiscal year		1,498.0		1,498.0		1,295.0
Prior		3,952.0		3,952.0		3,012.0
Revolving Loans Amortized Cost Basis		214.0		214.0		250.0
Total Loans and Leases		12,664.0		12,664.0		12,305.0
Current fiscal year, charge-off				0.0		0.2
Fiscal year before current fiscal year, charge-off				0.3		0.4
Two years before current fiscal year, charge-off				0.6		0.4
Three years before current fiscal year, charge-off				0.3		0.7
Four years before current fiscal year, charge-off				0.1		0.2
Prior, charge-off				9.0		10.5
Revolving Loans Amortized Cost Basis, charge-off				0.0		0.0
Total Loans and Leases, charge-off		3.2	1.8	10.3	8.3	12.4
Total commercial loans and leases | Commercial real estate | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans and Leases		12,621.0		12,621.0		12,242.0
Total commercial loans and leases | Commercial real estate | Past due
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans and Leases		43.0		43.0		63.0
Total commercial loans and leases | Commercial real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		708.0		708.0		1,508.0
Fiscal year before current fiscal year		1,570.0		1,570.0		2,133.0
Two years before current fiscal year		2,133.0		2,133.0		2,298.0
Three years before current fiscal year		2,187.0		2,187.0		1,449.0
Four years before current fiscal year		1,338.0		1,338.0		1,131.0
Prior		3,515.0		3,515.0		2,711.0
Revolving Loans Amortized Cost Basis		176.0		176.0		230.0
Total Loans and Leases		11,627.0		11,627.0		11,460.0
Total commercial loans and leases | Commercial real estate | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		1.0		1.0		10.0
Fiscal year before current fiscal year		14.0		14.0		66.0
Two years before current fiscal year		155.0		155.0		76.0
Three years before current fiscal year		81.0		81.0		136.0
Four years before current fiscal year		140.0		140.0		105.0
Prior		241.0		241.0		197.0
Revolving Loans Amortized Cost Basis		35.0		35.0		5.0
Total Loans and Leases		667.0		667.0		595.0
Total commercial loans and leases | Commercial real estate | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		6.0		6.0		5.0
Fiscal year before current fiscal year		16.0		16.0		27.0
Two years before current fiscal year		56.0		56.0		27.0
Three years before current fiscal year		73.0		73.0		13.0
Four years before current fiscal year		20.0		20.0		59.0
Prior		196.0		196.0		104.0
Revolving Loans Amortized Cost Basis		3.0		3.0		15.0
Total Loans and Leases		370.0		370.0		250.0
Total commercial loans and leases | Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		492.0		492.0		1,555.0
Fiscal year before current fiscal year		1,434.0		1,434.0		1,398.0
Two years before current fiscal year		1,226.0		1,226.0		962.0
Three years before current fiscal year		840.0		840.0		586.0
Four years before current fiscal year		486.0		486.0		406.0
Prior		904.0		904.0		678.0
Revolving Loans Amortized Cost Basis		2,215.0		2,215.0		1,897.0
Total Loans and Leases		7,597.0		7,597.0		7,482.0
Current fiscal year, charge-off				0.0		0.1
Fiscal year before current fiscal year, charge-off				0.5		0.3
Two years before current fiscal year, charge-off				1.0		1.0
Three years before current fiscal year, charge-off				1.0		1.0
Four years before current fiscal year, charge-off				0.9		2.2
Prior, charge-off				5.2		46.6
Revolving Loans Amortized Cost Basis, charge-off				0.0		0.0
Total Loans and Leases, charge-off		4.7	5.5	8.6	11.3	51.2
Total commercial loans and leases | Commercial and industrial | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans and Leases		7,543.0		7,543.0		7,434.0
Total commercial loans and leases | Commercial and industrial | Past due
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans and Leases		54.0		54.0		48.0
Total commercial loans and leases | Commercial and industrial | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		490.0		490.0		1,509.0
Fiscal year before current fiscal year		1,360.0		1,360.0		1,369.0
Two years before current fiscal year		1,169.0		1,169.0		844.0
Three years before current fiscal year		671.0		671.0		575.0
Four years before current fiscal year		466.0		466.0		370.0
Prior		753.0		753.0		585.0
Revolving Loans Amortized Cost Basis		2,061.0		2,061.0		1,773.0
Total Loans and Leases		6,970.0		6,970.0		7,025.0
Total commercial loans and leases | Commercial and industrial | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		1.0		1.0		12.0
Fiscal year before current fiscal year		31.0		31.0		3.0
Two years before current fiscal year		37.0		37.0		56.0
Three years before current fiscal year		119.0		119.0		2.0
Four years before current fiscal year		14.0		14.0		12.0
Prior		70.0		70.0		35.0
Revolving Loans Amortized Cost Basis		36.0		36.0		35.0
Total Loans and Leases		308.0		308.0		155.0
Total commercial loans and leases | Commercial and industrial | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		1.0		1.0		34.0
Fiscal year before current fiscal year		43.0		43.0		26.0
Two years before current fiscal year		20.0		20.0		62.0
Three years before current fiscal year		50.0		50.0		9.0
Four years before current fiscal year		6.0		6.0		24.0
Prior		81.0		81.0		58.0
Revolving Loans Amortized Cost Basis		118.0		118.0		89.0
Total Loans and Leases		319.0		319.0		302.0
Total commercial loans and leases | Commercial leases
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		179.0		179.0		254.0
Fiscal year before current fiscal year		215.0		215.0		138.0
Two years before current fiscal year		123.0		123.0		86.0
Three years before current fiscal year		74.0		74.0		54.0
Four years before current fiscal year		42.0		42.0		25.0
Prior		50.0		50.0		42.0
Revolving Loans Amortized Cost Basis		0.0		0.0		0.0
Total Loans and Leases		683.0		683.0		599.0
Current fiscal year, charge-off				0.0		0.0
Fiscal year before current fiscal year, charge-off				0.0		0.0
Two years before current fiscal year, charge-off				0.0		0.0
Three years before current fiscal year, charge-off				0.0		0.0
Four years before current fiscal year, charge-off				0.0		0.0
Prior, charge-off				0.2		0.0
Revolving Loans Amortized Cost Basis, charge-off				0.0		0.0
Total Loans and Leases, charge-off		0.0	0.0	0.2	0.0	0.0
Total commercial loans and leases | Commercial leases | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans and Leases		678.0		678.0		594.0
Total commercial loans and leases | Commercial leases | Past due
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans and Leases		5.0		5.0		5.0
Total commercial loans and leases | Commercial leases | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		179.0		179.0		247.0
Fiscal year before current fiscal year		207.0		207.0		134.0
Two years before current fiscal year		121.0		121.0		82.0
Three years before current fiscal year		69.0		69.0		47.0
Four years before current fiscal year		36.0		36.0		24.0
Prior		48.0		48.0		41.0
Revolving Loans Amortized Cost Basis		0.0		0.0		0.0
Total Loans and Leases		660.0		660.0		575.0
Total commercial loans and leases | Commercial leases | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		0.0		0.0		0.0
Fiscal year before current fiscal year		1.0		1.0		1.0
Two years before current fiscal year		0.0		0.0		0.0
Three years before current fiscal year		0.0		0.0		0.0
Four years before current fiscal year		0.0		0.0		0.0
Prior		1.0		1.0		1.0
Revolving Loans Amortized Cost Basis		0.0		0.0		0.0
Total Loans and Leases		2.0		2.0		2.0
Total commercial loans and leases | Commercial leases | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		0.0		0.0		7.0
Fiscal year before current fiscal year		7.0		7.0		3.0
Two years before current fiscal year		2.0		2.0		4.0
Three years before current fiscal year		5.0		5.0		7.0
Four years before current fiscal year		6.0		6.0		1.0
Prior		1.0		1.0		0.0
Revolving Loans Amortized Cost Basis		0.0		0.0		0.0
Total Loans and Leases		21.0		21.0		22.0
Total commercial loans and leases | Other
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		8.0		8.0		39.0
Fiscal year before current fiscal year		54.0		54.0		0.0
Two years before current fiscal year		0.0		0.0		0.0
Three years before current fiscal year		0.0		0.0		0.0
Four years before current fiscal year		0.0		0.0		0.0
Prior		6.0		6.0		8.0
Revolving Loans Amortized Cost Basis		77.0		77.0		63.0
Total Loans and Leases		145.0		145.0		110.0
Current fiscal year, charge-off				0.0		0.0
Fiscal year before current fiscal year, charge-off				0.0		0.0
Two years before current fiscal year, charge-off				0.0		0.0
Three years before current fiscal year, charge-off				0.0		0.0
Four years before current fiscal year, charge-off				0.0		0.0
Prior, charge-off				1.9		4.5
Revolving Loans Amortized Cost Basis, charge-off				0.0		0.0
Total Loans and Leases, charge-off		1.0	1.6	1.9	2.4	4.5
Total commercial loans and leases | Other | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans and Leases		139.0		139.0		108.0
Total commercial loans and leases | Other | Past due
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans and Leases		6.0		6.0		2.0
Total commercial loans and leases | Other | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		8.0		8.0		39.0
Fiscal year before current fiscal year		54.0		54.0		0.0
Two years before current fiscal year		0.0		0.0		0.0
Three years before current fiscal year		0.0		0.0		0.0
Four years before current fiscal year		0.0		0.0		0.0
Prior		6.0		6.0		8.0
Revolving Loans Amortized Cost Basis		77.0		77.0		63.0
Total Loans and Leases		145.0		145.0		110.0
Total consumer loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		1,345.0		1,345.0		2,115.0
Fiscal year before current fiscal year		2,124.0		2,124.0		2,862.0
Two years before current fiscal year		2,703.0		2,703.0		2,566.0
Three years before current fiscal year		2,417.0		2,417.0		1,299.0
Four years before current fiscal year		1,210.0		1,210.0		529.0
Prior		1,788.0		1,788.0		1,408.0
Revolving Loans Amortized Cost Basis		1,081.0		1,081.0		1,048.0
Total Loans and Leases		12,668.0		12,668.0		11,827.0
Total Loans and Leases, charge-off		3.4	2.8	6.8	6.4
Total consumer loans | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans and Leases		12,562.0		12,562.0		11,719.0
Total consumer loans | Past due
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans and Leases		106.0		106.0		108.0
Total consumer loans | Direct installment
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		165.0		165.0		340.0
Fiscal year before current fiscal year		311.0		311.0		713.0
Two years before current fiscal year		668.0		668.0		784.0
Three years before current fiscal year		733.0		733.0		393.0
Four years before current fiscal year		367.0		367.0		137.0
Prior		456.0		456.0		374.0
Revolving Loans Amortized Cost Basis		0.0		0.0		0.0
Total Loans and Leases		2,700.0		2,700.0		2,741.0
Current fiscal year, charge-off				0.0		0.0
Fiscal year before current fiscal year, charge-off				0.1		0.2
Two years before current fiscal year, charge-off				0.1		0.1
Three years before current fiscal year, charge-off				0.1		0.1
Four years before current fiscal year, charge-off				0.0		0.0
Prior, charge-off				0.3		0.2
Revolving Loans Amortized Cost Basis, charge-off				0.0		0.0
Total Loans and Leases, charge-off		0.4	0.1	0.6	0.4	0.6
Total consumer loans | Direct installment | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		165.0		165.0		340.0
Fiscal year before current fiscal year		310.0		310.0		712.0
Two years before current fiscal year		667.0		667.0		784.0
Three years before current fiscal year		732.0		732.0		392.0
Four years before current fiscal year		366.0		366.0		136.0
Prior		447.0		447.0		364.0
Revolving Loans Amortized Cost Basis		0.0		0.0		0.0
Total Loans and Leases		2,687.0		2,687.0		2,728.0
Total consumer loans | Direct installment | Past due
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		0.0		0.0		0.0
Fiscal year before current fiscal year		1.0		1.0		1.0
Two years before current fiscal year		1.0		1.0		0.0
Three years before current fiscal year		1.0		1.0		1.0
Four years before current fiscal year		1.0		1.0		1.0
Prior		9.0		9.0		10.0
Revolving Loans Amortized Cost Basis		0.0		0.0		0.0
Total Loans and Leases		13.0		13.0		13.0
Total consumer loans | Residential mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		919.0		919.0		1,424.0
Fiscal year before current fiscal year		1,507.0		1,507.0		1,692.0
Two years before current fiscal year		1,648.0		1,648.0		1,521.0
Three years before current fiscal year		1,475.0		1,475.0		802.0
Four years before current fiscal year		766.0		766.0		346.0
Prior		1,143.0		1,143.0		854.0
Revolving Loans Amortized Cost Basis		1.0		1.0		1.0
Total Loans and Leases		7,459.0		7,459.0		6,640.0
Current fiscal year, charge-off				0.0		0.0
Fiscal year before current fiscal year, charge-off				0.1		0.0
Two years before current fiscal year, charge-off				0.0		0.0
Three years before current fiscal year, charge-off				0.0		0.0
Four years before current fiscal year, charge-off				0.0		0.0
Prior, charge-off				0.1		0.7
Revolving Loans Amortized Cost Basis, charge-off				0.0		0.0
Total Loans and Leases, charge-off		0.2	0.2	0.2	0.6	0.7
Total consumer loans | Residential mortgages | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		918.0		918.0		1,421.0
Fiscal year before current fiscal year		1,499.0		1,499.0		1,686.0
Two years before current fiscal year		1,642.0		1,642.0		1,516.0
Three years before current fiscal year		1,469.0		1,469.0		799.0
Four years before current fiscal year		763.0		763.0		343.0
Prior		1,109.0		1,109.0		819.0
Revolving Loans Amortized Cost Basis		1.0		1.0		1.0
Total Loans and Leases		7,401.0		7,401.0		6,585.0
Total consumer loans | Residential mortgages | Past due
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		1.0		1.0		3.0
Fiscal year before current fiscal year		8.0		8.0		6.0
Two years before current fiscal year		6.0		6.0		5.0
Three years before current fiscal year		6.0		6.0		3.0
Four years before current fiscal year		3.0		3.0		3.0
Prior		34.0		34.0		35.0
Revolving Loans Amortized Cost Basis		0.0		0.0		0.0
Total Loans and Leases		58.0		58.0		55.0
Total consumer loans | Indirect installment
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		256.0		256.0		313.0
Fiscal year before current fiscal year		272.0		272.0		395.0
Two years before current fiscal year		330.0		330.0		246.0
Three years before current fiscal year		195.0		195.0		102.0
Four years before current fiscal year		74.0		74.0		43.0
Prior		61.0		61.0		50.0
Revolving Loans Amortized Cost Basis		0.0		0.0		0.0
Total Loans and Leases		1,188.0		1,188.0		1,149.0
Current fiscal year, charge-off				0.0		0.4
Fiscal year before current fiscal year, charge-off				0.8		4.3
Two years before current fiscal year, charge-off				2.5		3.7
Three years before current fiscal year, charge-off				1.6		0.6
Four years before current fiscal year, charge-off				0.3		0.3
Prior, charge-off				0.2		1.4
Revolving Loans Amortized Cost Basis, charge-off				0.0		0.0
Total Loans and Leases, charge-off		2.5	2.2	5.4	4.8	10.7
Total consumer loans | Indirect installment | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		256.0		256.0		311.0
Fiscal year before current fiscal year		269.0		269.0		387.0
Two years before current fiscal year		323.0		323.0		238.0
Three years before current fiscal year		188.0		188.0		100.0
Four years before current fiscal year		72.0		72.0		42.0
Prior		60.0		60.0		49.0
Revolving Loans Amortized Cost Basis		0.0		0.0		0.0
Total Loans and Leases		1,168.0		1,168.0		1,127.0
Total consumer loans | Indirect installment | Past due
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		0.0		0.0		2.0
Fiscal year before current fiscal year		3.0		3.0		8.0
Two years before current fiscal year		7.0		7.0		8.0
Three years before current fiscal year		7.0		7.0		2.0
Four years before current fiscal year		2.0		2.0		1.0
Prior		1.0		1.0		1.0
Revolving Loans Amortized Cost Basis		0.0		0.0		0.0
Total Loans and Leases		20.0		20.0		22.0
Total consumer loans | Consumer lines of credit
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		5.0		5.0		38.0
Fiscal year before current fiscal year		34.0		34.0		62.0
Two years before current fiscal year		57.0		57.0		15.0
Three years before current fiscal year		14.0		14.0		2.0
Four years before current fiscal year		3.0		3.0		3.0
Prior		128.0		128.0		130.0
Revolving Loans Amortized Cost Basis		1,080.0		1,080.0		1,047.0
Total Loans and Leases		1,321.0		1,321.0		1,297.0
Current fiscal year, charge-off				0.0		0.1
Fiscal year before current fiscal year, charge-off				0.0		0.0
Two years before current fiscal year, charge-off				0.1		0.0
Three years before current fiscal year, charge-off				0.0		0.0
Four years before current fiscal year, charge-off				0.0		0.0
Prior, charge-off				0.5		0.9
Revolving Loans Amortized Cost Basis, charge-off				0.0		0.0
Total Loans and Leases, charge-off		0.3	$ 0.3	0.6	$ 0.6	1.0
Total consumer loans | Consumer lines of credit | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		5.0		5.0		38.0
Fiscal year before current fiscal year		34.0		34.0		61.0
Two years before current fiscal year		56.0		56.0		14.0
Three years before current fiscal year		13.0		13.0		2.0
Four years before current fiscal year		3.0		3.0		3.0
Prior		117.0		117.0		117.0
Revolving Loans Amortized Cost Basis		1,078.0		1,078.0		1,044.0
Total Loans and Leases		1,306.0		1,306.0		1,279.0
Total consumer loans | Consumer lines of credit | Past due
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		0.0		0.0		0.0
Fiscal year before current fiscal year		0.0		0.0		1.0
Two years before current fiscal year		1.0		1.0		1.0
Three years before current fiscal year		1.0		1.0		0.0
Four years before current fiscal year		0.0		0.0		0.0
Prior		11.0		11.0		13.0
Revolving Loans Amortized Cost Basis		2.0		2.0		3.0
Total Loans and Leases		$ 15.0		$ 15.0		$ 18.0

[1] Amount represents loans for which we have elected the fair value option. See Note 18.

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LOANS AND LEASES - Schedule of Age Analysis of Past Due Loans (Details) - USD ($) $ in Millions		Jun. 30, 2024	Dec. 31, 2023
Financing Receivable, Past Due [Line Items]
Total Loans and Leases	[1]	$ 33,757	$ 32,323
90 Days Past Due and Still Accruing		11	12
Non-accrual loans		108	107
Non-accrual with No ACL		38	25
30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		95	107
Past due
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		214	226
Current
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		33,543	32,097
Total commercial loans and leases
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		21,089	20,496
90 Days Past Due and Still Accruing		1	1
Non-accrual loans		83	84
Non-accrual with No ACL		38	25
Total commercial loans and leases | 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		24	33
Total commercial loans and leases | Past due
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		108	118
Total commercial loans and leases | Current
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		20,981	20,378
Total commercial loans and leases | Commercial real estate
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		12,664	12,305
90 Days Past Due and Still Accruing		0	0
Non-accrual loans		33	42
Non-accrual with No ACL		19	18
Total commercial loans and leases | Commercial real estate | 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		10	21
Total commercial loans and leases | Commercial real estate | Past due
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		43	63
Total commercial loans and leases | Commercial real estate | Current
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		12,621	12,242
Total commercial loans and leases | Commercial and industrial
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		7,597	7,482
90 Days Past Due and Still Accruing		0	0
Non-accrual loans		45	39
Non-accrual with No ACL		19	7
Total commercial loans and leases | Commercial and industrial | 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		9	9
Total commercial loans and leases | Commercial and industrial | Past due
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		54	48
Total commercial loans and leases | Commercial and industrial | Current
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		7,543	7,434
Total commercial loans and leases | Commercial leases
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		683	599
90 Days Past Due and Still Accruing		0	0
Non-accrual loans		3	3
Non-accrual with No ACL		0	0
Total commercial loans and leases | Commercial leases | 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		2	2
Total commercial loans and leases | Commercial leases | Past due
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		5	5
Total commercial loans and leases | Commercial leases | Current
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		678	594
Total commercial loans and leases | Other
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		145	110
90 Days Past Due and Still Accruing		1	1
Non-accrual loans		2	0
Non-accrual with No ACL		0	0
Total commercial loans and leases | Other | 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		3	1
Total commercial loans and leases | Other | Past due
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		6	2
Total commercial loans and leases | Other | Current
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		139	108
Total consumer loans
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		12,668	11,827
90 Days Past Due and Still Accruing		10	11
Non-accrual loans		25	23
Non-accrual with No ACL		0	0
Total consumer loans | 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		71	74
Total consumer loans | Past due
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		106	108
Total consumer loans | Current
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		12,562	11,719
Total consumer loans | Direct installment
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		2,700	2,741
90 Days Past Due and Still Accruing		1	1
Non-accrual loans		5	5
Non-accrual with No ACL		0	0
Total consumer loans | Direct installment | 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		7	7
Total consumer loans | Direct installment | Past due
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		13	13
Total consumer loans | Direct installment | Current
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		2,687	2,728
Total consumer loans | Residential mortgages
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		7,459	6,640
90 Days Past Due and Still Accruing		7	7
Non-accrual loans		12	10
Non-accrual with No ACL		0	0
Total consumer loans | Residential mortgages | 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		39	38
Total consumer loans | Residential mortgages | Past due
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		58	55
Total consumer loans | Residential mortgages | Current
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		7,401	6,585
Total consumer loans | Indirect installment
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		1,188	1,149
90 Days Past Due and Still Accruing		0	1
Non-accrual loans		2	2
Non-accrual with No ACL		0	0
Total consumer loans | Indirect installment | 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		18	19
Total consumer loans | Indirect installment | Past due
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		20	22
Total consumer loans | Indirect installment | Current
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		1,168	1,127
Total consumer loans | Consumer lines of credit
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		1,321	1,297
90 Days Past Due and Still Accruing		2	2
Non-accrual loans		6	6
Non-accrual with No ACL		0	0
Total consumer loans | Consumer lines of credit | 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		7	10
Total consumer loans | Consumer lines of credit | Past due
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		15	18
Total consumer loans | Consumer lines of credit | Current
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		$ 1,306	$ 1,279

[1] Amount represents loans for which we have elected the fair value option. See Note 18.

XML

LOANS AND LEASES - Schedule of Non-Performing Assets (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	$ 108	$ 107
Non-Performing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	108	107
Total non-performing loans and leases	108	107
Other real estate owned	3	3
Total non-performing assets	$ 111	$ 110
Non-performing loans and leases / total loans and leases	0.32%	0.33%
Non-performing assets plus 90 days or more past due / total loans and leases plus OREO	0.36%	0.38%
Past due	90 days	90 days

XML

LOANS AND LEASES - Schedule of Loan Modifications (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Financing Receivable, Modified [Line Items]
Amortized Cost Basis	$ 5.1	$ 14.5	$ 13.3	$ 18.4
Term Extension
Financing Receivable, Modified [Line Items]
Amortized Cost Basis	4.6	13.0	5.9	16.0
Rate Reduction
Financing Receivable, Modified [Line Items]
Amortized Cost Basis			0.1
Term Extension and Rate Reduction
Financing Receivable, Modified [Line Items]
Amortized Cost Basis	0.4	1.3	1.9	1.8
Balloon Payment
Financing Receivable, Modified [Line Items]
Amortized Cost Basis			0.6
Other
Financing Receivable, Modified [Line Items]
Amortized Cost Basis	0.1	0.2	4.8	0.6
Direct installment | Term Extension
Financing Receivable, Modified [Line Items]
Amortized Cost Basis	$ 0.7	$ 0.3	$ 0.8	$ 0.4
% of Total Class of Financing Receivable	0.03%	0.01%	0.03%	0.01%
Term increase from modification	41 months		61 months
Direct installment | Term Extension and Rate Reduction
Financing Receivable, Modified [Line Items]
Amortized Cost Basis		$ 0.2		$ 0.3
% of Total Class of Financing Receivable		0.01%		0.01%
Term increase from modification		445 months		363 months
Residential mortgages | Term Extension
Financing Receivable, Modified [Line Items]
Amortized Cost Basis	$ 3.4	$ 1.5	$ 4.1	$ 1.6
% of Total Class of Financing Receivable	0.05%	0.02%	0.05%	0.03%
Term increase from modification	24 months	138 months	28 months	141 months
Residential mortgages | Rate Reduction
Financing Receivable, Modified [Line Items]
Amortized Cost Basis			$ 0.1
% of Total Class of Financing Receivable			0.00%
Term reduction from modification			1.00%
Residential mortgages | Term Extension and Rate Reduction
Financing Receivable, Modified [Line Items]
Amortized Cost Basis	$ 0.2	$ 0.4	$ 0.8	$ 0.7
% of Total Class of Financing Receivable	0.00%	0.01%	0.01%	0.01%
Term increase from modification		151 months
Term reduction from modification				2.78%
Residential mortgages | Other
Financing Receivable, Modified [Line Items]
Amortized Cost Basis				$ 0.1
% of Total Class of Financing Receivable				0.00%
Consumer lines of credit | Term Extension
Financing Receivable, Modified [Line Items]
Amortized Cost Basis	$ 0.5		$ 1.0	$ 0.2
% of Total Class of Financing Receivable	0.04%		0.08%	0.02%
Term increase from modification	162 months		208 months
Consumer lines of credit | Term Extension and Rate Reduction
Financing Receivable, Modified [Line Items]
Amortized Cost Basis	$ 0.2	$ 0.6	$ 0.2	$ 0.6
% of Total Class of Financing Receivable	0.02%	0.05%	0.02%	0.05%
Term reduction from modification		3.26%		3.26%
Consumer lines of credit | Other
Financing Receivable, Modified [Line Items]
Amortized Cost Basis		$ 0.2		$ 0.2
% of Total Class of Financing Receivable		0.02%		0.02%
Commercial real estate | Term Extension
Financing Receivable, Modified [Line Items]
Amortized Cost Basis		$ 11.2		$ 11.5
% of Total Class of Financing Receivable		0.10%		0.10%
Term increase from modification		22 months		22 months
Commercial real estate | Term Extension and Rate Reduction
Financing Receivable, Modified [Line Items]
Amortized Cost Basis			$ 0.9
% of Total Class of Financing Receivable			0.01%
Commercial real estate | Balloon Payment
Financing Receivable, Modified [Line Items]
Amortized Cost Basis			$ 0.6
% of Total Class of Financing Receivable			0.00%
Commercial real estate | Other
Financing Receivable, Modified [Line Items]
Amortized Cost Basis	$ 0.1		$ 4.2	$ 0.3
% of Total Class of Financing Receivable	0.00%		0.03%	0.00%
Commercial real estate | Other | Minimum
Financing Receivable, Modified [Line Items]
Term for payment deferrals	3 months		3 months
Commercial real estate | Other | Maximum
Financing Receivable, Modified [Line Items]
Term for payment deferrals	9 months		12 months
Commercial and industrial | Term Extension
Financing Receivable, Modified [Line Items]
Amortized Cost Basis				$ 2.3
% of Total Class of Financing Receivable				0.03%
Term increase from modification				12 months
Commercial and industrial | Term Extension and Rate Reduction
Financing Receivable, Modified [Line Items]
Amortized Cost Basis		$ 0.1		$ 0.2
% of Total Class of Financing Receivable		0.00%		0.00%
Term reduction from modification		4.87%		4.87%
Commercial and industrial | Other
Financing Receivable, Modified [Line Items]
Amortized Cost Basis			$ 0.6
% of Total Class of Financing Receivable			0.01%

XML

LOANS AND LEASES - Schedule of Loan Modifications, Subsequently Defaulted (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	$ 3.0	$ 0.6	$ 34.8	$ 3.2
Term Extension
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	1.9	0.4	22.7	2.0
Term Extension and Rate Reduction
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.0	0.1	1.1	0.5
Balloon Payment
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.0		0.6
Other
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	1.1	0.1	10.4	0.7
Total commercial loans and leases
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	1.5	0.6	33.1	2.8
Total commercial loans and leases | Term Extension
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.4	0.4	21.0	1.9
Total commercial loans and leases | Term Extension and Rate Reduction
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.0	0.1	1.1	0.2
Total commercial loans and leases | Balloon Payment
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.0		0.6
Total commercial loans and leases | Other
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	1.1	0.1	10.4	0.7
Total commercial loans and leases | Commercial real estate
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.6	0.5	11.0	1.1
Total commercial loans and leases | Commercial real estate | Term Extension
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.4	0.4	0.7	0.4
Total commercial loans and leases | Commercial real estate | Term Extension and Rate Reduction
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.0	0.0	0.9	0.0
Total commercial loans and leases | Commercial real estate | Balloon Payment
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.0		0.6
Total commercial loans and leases | Commercial real estate | Other
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.2	0.1	8.8	0.7
Total commercial loans and leases | Commercial and industrial
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.9	0.1	22.1	1.7
Total commercial loans and leases | Commercial and industrial | Term Extension
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.0	0.0	20.3	1.5
Total commercial loans and leases | Commercial and industrial | Term Extension and Rate Reduction
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.0	0.1	0.2	0.2
Total commercial loans and leases | Commercial and industrial | Balloon Payment
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.0		0.0
Total commercial loans and leases | Commercial and industrial | Other
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.9	$ 0.0	1.6	0.0
Total consumer loans
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	1.5		1.7	0.4
Total consumer loans | Term Extension
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	1.5		1.7	0.1
Total consumer loans | Term Extension and Rate Reduction
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.0		0.0	0.3
Total consumer loans | Balloon Payment
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.0		0.0
Total consumer loans | Other
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.0		0.0	0.0
Total consumer loans | Residential mortgages
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	1.5		1.7	0.3
Total consumer loans | Residential mortgages | Term Extension
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	1.5		1.7	0.0
Total consumer loans | Residential mortgages | Term Extension and Rate Reduction
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.0		0.0	0.3
Total consumer loans | Residential mortgages | Balloon Payment
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.0		0.0
Total consumer loans | Residential mortgages | Other
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	$ 0.0		$ 0.0	0.0
Total consumer loans | Consumer lines of credit
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted				0.1
Total consumer loans | Consumer lines of credit | Term Extension
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted				0.1
Total consumer loans | Consumer lines of credit | Term Extension and Rate Reduction
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted				0.0
Total consumer loans | Consumer lines of credit | Other
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted				$ 0.0

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LOANS AND LEASES - Schedule of Loan Modifications, Aging Analysis (Details) - USD ($) $ in Millions	Jun. 30, 2024	Jun. 30, 2023
Current
Financing Receivable, Modified [Line Items]
Total	$ 39.5	$ 17.0
30-89 Days Past Due
Financing Receivable, Modified [Line Items]
Total	4.1	1.4
90+ Days Past Due
Financing Receivable, Modified [Line Items]
Total	1.2	0.0
Total commercial loans and leases | Current
Financing Receivable, Modified [Line Items]
Total	33.3	13.6
Total commercial loans and leases | 30-89 Days Past Due
Financing Receivable, Modified [Line Items]
Total	0.0	0.8
Total commercial loans and leases | 90+ Days Past Due
Financing Receivable, Modified [Line Items]
Total	0.0	0.0
Total commercial loans and leases | Commercial real estate | Current
Financing Receivable, Modified [Line Items]
Total	14.8	11.9
Total commercial loans and leases | Commercial real estate | 30-89 Days Past Due
Financing Receivable, Modified [Line Items]
Total	0.0	0.0
Total commercial loans and leases | Commercial real estate | 90+ Days Past Due
Financing Receivable, Modified [Line Items]
Total	0.0	0.0
Total commercial loans and leases | Commercial and industrial | Current
Financing Receivable, Modified [Line Items]
Total	18.5	1.7
Total commercial loans and leases | Commercial and industrial | 30-89 Days Past Due
Financing Receivable, Modified [Line Items]
Total	0.0	0.8
Total commercial loans and leases | Commercial and industrial | 90+ Days Past Due
Financing Receivable, Modified [Line Items]
Total	0.0	0.0
Total consumer loans | Current
Financing Receivable, Modified [Line Items]
Total	6.2	3.4
Total consumer loans | 30-89 Days Past Due
Financing Receivable, Modified [Line Items]
Total	4.1	0.6
Total consumer loans | 90+ Days Past Due
Financing Receivable, Modified [Line Items]
Total	1.2	0.0
Total consumer loans | Direct installment | Current
Financing Receivable, Modified [Line Items]
Total	1.3	0.6
Total consumer loans | Direct installment | 30-89 Days Past Due
Financing Receivable, Modified [Line Items]
Total	0.8	0.1
Total consumer loans | Direct installment | 90+ Days Past Due
Financing Receivable, Modified [Line Items]
Total	0.0	0.0
Total consumer loans | Residential mortgages | Current
Financing Receivable, Modified [Line Items]
Total	3.3	1.8
Total consumer loans | Residential mortgages | 30-89 Days Past Due
Financing Receivable, Modified [Line Items]
Total	2.9	0.5
Total consumer loans | Residential mortgages | 90+ Days Past Due
Financing Receivable, Modified [Line Items]
Total	1.2	0.0
Total consumer loans | Consumer lines of credit | Current
Financing Receivable, Modified [Line Items]
Total	1.6	1.0
Total consumer loans | Consumer lines of credit | 30-89 Days Past Due
Financing Receivable, Modified [Line Items]
Total	0.4	0.0
Total consumer loans | Consumer lines of credit | 90+ Days Past Due
Financing Receivable, Modified [Line Items]
Total	$ 0.0	$ 0.0

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ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES - Schedule of Changes in Allowance for Credit Losses (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Allowance for Loan and Lease Losses [Roll Forward]
Balance at Beginning of Period			$ 406.0
Charge- Offs			(27.8)		$ (81.1)
Provision for Credit Losses	$ 20.2	$ 18.5	34.1	$ 32.6
Balance at End of Period	419.0		419.0		406.0
Commercial and industrial
Allowance for Loan and Lease Losses [Roll Forward]
Provision for Credit Losses		32.0
Unfunded loan commitment
Allowance for Loan and Lease Losses [Roll Forward]
Balance at Beginning of Period	21.9	20.5	21.5	21.4	21.4
Charge- Offs	0.0	0.0	0.0	0.0
Recoveries	0.0	0.0	0.0	0.0
Net (Charge- Offs) Recoveries	0.0	0.0	0.0	0.0
Provision for Credit Losses	(0.1)	0.5	0.3	(0.4)
Balance at End of Period	21.8	21.0	21.8	21.0	21.5
Total commercial loans and leases
Allowance for Loan and Lease Losses [Roll Forward]
Balance at Beginning of Period	275.3	279.7	279.3	281.7	281.7
Charge- Offs	(8.9)	(8.9)	(21.0)	(22.0)
Recoveries	3.2	2.2	4.7	4.4
Net (Charge- Offs) Recoveries	(5.7)	(6.7)	(16.3)	(17.6)
Provision for Credit Losses	8.5	14.5	15.1	23.4
Balance at End of Period	278.1	287.5	278.1	287.5	279.3
Total commercial loans and leases | Commercial real estate
Allowance for Loan and Lease Losses [Roll Forward]
Balance at Beginning of Period	161.9	159.2	166.6	162.1	162.1
Charge- Offs	(3.2)	(1.8)	(10.3)	(8.3)	(12.4)
Recoveries	0.8	1.3	1.2	2.3
Net (Charge- Offs) Recoveries	(2.4)	(0.5)	(9.1)	(6.0)
Provision for Credit Losses	(1.8)	(4.5)	0.2	(1.9)
Balance at End of Period	157.7	154.2	157.7	154.2	166.6
Total commercial loans and leases | Commercial and industrial
Allowance for Loan and Lease Losses [Roll Forward]
Balance at Beginning of Period	86.9	101.7	87.8	102.1	102.1
Charge- Offs	(4.7)	(5.5)	(8.6)	(11.3)	(51.2)
Recoveries	1.7	0.7	2.5	1.6
Net (Charge- Offs) Recoveries	(3.0)	(4.8)	(6.1)	(9.7)
Provision for Credit Losses	9.6	17.4	11.8	21.9
Balance at End of Period	93.5	114.3	93.5	114.3	87.8
Total commercial loans and leases | Commercial leases
Allowance for Loan and Lease Losses [Roll Forward]
Balance at Beginning of Period	22.4	14.8	21.2	13.5	13.5
Charge- Offs	0.0	0.0	(0.2)	0.0	0.0
Recoveries	0.1	0.0	0.1	0.0
Net (Charge- Offs) Recoveries	0.1	0.0	(0.1)	0.0
Provision for Credit Losses	0.4	0.4	1.8	1.7
Balance at End of Period	22.9	15.2	22.9	15.2	21.2
Total commercial loans and leases | Other
Allowance for Loan and Lease Losses [Roll Forward]
Balance at Beginning of Period	4.1	4.0	3.7	4.0	4.0
Charge- Offs	(1.0)	(1.6)	(1.9)	(2.4)	(4.5)
Recoveries	0.6	0.2	0.9	0.5
Net (Charge- Offs) Recoveries	(0.4)	(1.4)	(1.0)	(1.9)
Provision for Credit Losses	0.3	1.2	1.3	1.7
Balance at End of Period	4.0	3.8	4.0	3.8	3.7
Total commercial loans and leases | Unfunded loan commitment
Allowance for Loan and Lease Losses [Roll Forward]
Provision for Credit Losses	(0.1)	0.5	0.4	(0.4)
Total consumer loans
Allowance for Loan and Lease Losses [Roll Forward]
Balance at Beginning of Period	131.0	123.7	126.3	120.0	120.0
Charge- Offs	(3.4)	(2.8)	(6.8)	(6.4)
Recoveries	1.3	0.8	2.5	2.1
Net (Charge- Offs) Recoveries	(2.1)	(2.0)	(4.3)	(4.3)
Provision for Credit Losses	11.8	3.5	18.7	9.5
Balance at End of Period	140.7	125.2	140.7	125.2	126.3
Total consumer loans | Direct installment
Allowance for Loan and Lease Losses [Roll Forward]
Balance at Beginning of Period	30.6	36.2	33.8	35.9	35.9
Charge- Offs	(0.4)	(0.1)	(0.6)	(0.4)	(0.6)
Recoveries	0.2	0.1	0.4	0.3
Net (Charge- Offs) Recoveries	(0.2)	0.0	(0.2)	(0.1)
Provision for Credit Losses	0.5	(0.6)	(2.7)	(0.2)
Balance at End of Period	30.9	35.6	30.9	35.6	33.8
Total consumer loans | Residential mortgages
Allowance for Loan and Lease Losses [Roll Forward]
Balance at Beginning of Period	79.3	60.4	70.5	55.5	55.5
Charge- Offs	(0.2)	(0.2)	(0.2)	(0.6)	(0.7)
Recoveries	0.1	0.0	0.1	0.2
Net (Charge- Offs) Recoveries	(0.1)	(0.2)	(0.1)	(0.4)
Provision for Credit Losses	9.0	3.2	17.8	8.3
Balance at End of Period	88.2	63.4	88.2	63.4	70.5
Total consumer loans | Indirect installment
Allowance for Loan and Lease Losses [Roll Forward]
Balance at Beginning of Period	12.5	16.6	12.8	17.3	17.3
Charge- Offs	(2.5)	(2.2)	(5.4)	(4.8)	(10.7)
Recoveries	0.9	0.5	1.5	1.1
Net (Charge- Offs) Recoveries	(1.6)	(1.7)	(3.9)	(3.7)
Provision for Credit Losses	2.2	1.7	4.2	3.0
Balance at End of Period	13.1	16.6	13.1	16.6	12.8
Total consumer loans | Consumer lines of credit
Allowance for Loan and Lease Losses [Roll Forward]
Balance at Beginning of Period	8.6	10.5	9.2	11.3	11.3
Charge- Offs	(0.3)	(0.3)	(0.6)	(0.6)	(1.0)
Recoveries	0.1	0.2	0.5	0.5
Net (Charge- Offs) Recoveries	(0.2)	(0.1)	(0.1)	(0.1)
Provision for Credit Losses	0.1	(0.8)	(0.6)	(1.6)
Balance at End of Period	8.5	9.6	8.5	9.6	9.2
Total consumer loans | Unfunded loan commitment
Allowance for Loan and Lease Losses [Roll Forward]
Provision for Credit Losses	0.0	0.0	(0.1)	0.0
Allowance for credit losses on loans and leases
Allowance for Loan and Lease Losses [Roll Forward]
Balance at Beginning of Period	406.3	403.4	405.6	401.7	401.7
Charge- Offs	(12.3)	(11.7)	(27.8)	(28.4)
Recoveries	4.5	3.0	7.2	6.5
Net (Charge- Offs) Recoveries	(7.8)	(8.7)	(20.6)	(21.9)
Provision for Credit Losses	20.3	18.0	33.8	32.9
Balance at End of Period	418.8	412.7	418.8	412.7	405.6
Allowance for credit losses on loans and leases and allowance for unfunded loan commitments
Allowance for Loan and Lease Losses [Roll Forward]
Balance at Beginning of Period	428.2	423.9	427.1	423.1	423.1
Charge- Offs	(12.3)	(11.7)	(27.8)	(28.4)
Recoveries	4.5	3.0	7.2	6.5
Net (Charge- Offs) Recoveries	(7.8)	(8.7)	(20.6)	(21.9)
Provision for Credit Losses	20.2	18.5	34.1	32.5
Balance at End of Period	$ 440.6	$ 433.7	$ 440.6	$ 433.7	$ 427.1

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ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]
Percentage of increase, housing price index	7.20%		7.20%			5.30%
Percentage of increase, commercial real estate price index	5.90%		5.90%			0.10%
Percentage of increase (decline), S&P volatility in next fiscal year	12.30%		12.30%			(4.00%)
Percentage of decline, S&P volatility in next second year	0.80%		0.80%			2.90%
Allowance for credit loss	$ 419.0		$ 419.0			$ 406.0
Financing receivable, provision for credit losses	20.2	$ 18.5	34.1	$ 32.6
Financing receivable, allowance for credit loss, specific reserves		13.0
Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, provision for credit losses		32.0
Allowance for credit losses on loans and leases
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for credit loss	$ 418.8	412.7	418.8	412.7	$ 406.3	$ 405.6	$ 403.4	$ 401.7
Financing receivable, allowance for credit loss, period increase			$ 13.2
Financing receivable, allowance for credit loss, period decrease, percentage			3.30%
Financing receivable, allowance for credit loss, ratio	1.24%		1.24%			1.25%
Financing receivable, provision for credit losses	$ 20.3	18.0	$ 33.8	32.9
Financing receivable, allowance for credit loss, net charge-offs (recovery)	$ 7.8	$ 8.7	$ 20.6	$ 21.9
Financing receivable, allowance for credit loss, net charge-offs (recovery), percentage	0.09%	0.11%	0.13%	0.14%

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LOAN SERVICING - Schedule of Activity in MSR (Details) - Mortgage Servicing Rights - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Servicing Assets at Fair Value [Line Items]
Mortgage loans sold with servicing retained	$ 6,095,000,000		$ 6,095,000,000		$ 5,729,000,000
Mortgage loans sold with servicing retained	306,000,000	$ 261,000,000	622,000,000	$ 459,000,000
Pre-tax net gains (losses) resulting from above loan sales	5,000,000	1,000,000	11,000,000	1,000,000
Mortgage servicing fees	3,000,000	4,000,000	7,000,000	7,000,000
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Balance at beginning of period	62,500,000	54,300,000	59,500,000	52,800,000
Additions	3,900,000	2,700,000	7,800,000	5,200,000
Payoffs and curtailments	(800,000)	0	(1,300,000)	(300,000)
Impairment (charge) / recovery	0	0	200,000	0
Amortization / other	(500,000)	(1,300,000)	(1,100,000)	(2,000,000.0)
Balance at end of period	65,100,000	55,700,000	65,100,000	55,700,000
Fair value, beginning of period	75,200,000	67,800,000	71,800,000	68,600,000
Fair value, end of period	78,000,000.0	$ 72,100,000	78,000,000.0	$ 72,100,000
Valuation allowance for servicing rights	$ 0		$ 0		$ 200,000

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LOAN SERVICING - Schedule of Sensitivity of Fair Value to Changes in Key Assumptions (Details) - Mortgage Servicing Rights - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items]
Weighted average life (months)	92 months	92 months
Constant prepayment rate (annualized)	8.10%	7.90%
Discount rate	10.20%	10.20%
Sensitivity analysis of fair value, change in interest rates, plus 2.00%	$ 8	$ 7
Sensitivity analysis of fair value, change in interest rates, plus 1.00%	6	5
Sensitivity analysis of fair value, change in interest rates, plus 0.50%	4	3
Sensitivity analysis of fair value, change in interest rates, plus 0.25%	2	2
Sensitivity analysis of fair value, change in interest rates, minus 0.25%	(2)	(2)
Sensitivity analysis of fair value, change in interest rates, minus 0.50%	(5)	(4)
Sensitivity analysis of fair value, change in interest rates, minus 1.00%	(10)	(8)
Sensitivity analysis of fair value, change in interest rates, minus 2.00%	(19)	(21)
Sensitivity analysis of fair value, change in interest rates, minus 3.00%	$ (36)	$ (42)

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LEASES - Additional Information (Details) $ in Millions	Jun. 30, 2024 USD ($) option
Lessee, Lease, Description [Line Items]
Operating lease, right-of-use asset	$ 199.3
Operating lease, liability	240.4
Finance lease right-of-use asset	34.6
Finance lease liability	36.2
Operating Lease, Lease Not yet Commenced
Lessee, Lease, Description [Line Items]
Lessee, operating lease, lease not yet commenced, right-of-use asset	8.0
Lessee, operating lease, lease not yet commenced, liability	$ 8.3
Minimum
Lessee, Lease, Description [Line Items]
Lessee, operating lease, number of options to renew | option	1
Lessee, finance lease, number of options to renew | option	1
Maximum
Lessee, Lease, Description [Line Items]
Lessee, operating lease, lease not yet commenced, term of contract	20 years

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LEASES - Schedule of Lease Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Leases [Abstract]
Operating lease cost	$ 9	$ 8	$ 19	$ 16
Variable lease cost	2	1	3	2
Finance lease cost	1	1	2	2
Total lease cost	$ 12	$ 10	$ 24	$ 20

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LEASES - Schedule of Other Information (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 15	$ 7
Operating cash flows from finance leases	1	0
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	25	0
Finance leases	$ 4	$ 0
Weighted average remaining lease term (years):
Operating leases	11 years	9 years 1 month 9 days
Finance leases	19 years	19 years 11 months 19 days
Weighted average discount rate:
Operating leases	3.80%	2.70%
Finance leases	3.40%	3.10%

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LEASES - Schedule of Future Cash Flow of Lease Liabilities (Details) $ in Millions	Jun. 30, 2024 USD ($)
Operating Leases
0 - 12 months	$ 35.0
13 - 24 months	30.0
25 - 36 months	27.0
37 - 48 months	25.0
49 - 60 months	23.0
Later years	164.0
Total lease payments	304.0
Less: imputed interest	(64.0)
Present value of lease liabilities	240.4
Finance Leases
0 - 12 months	2.0
13 - 24 months	2.0
25 - 36 months	2.0
37 - 48 months	3.0
49 - 60 months	3.0
Later years	37.0
Total lease payments	49.0
Less: imputed interest	(13.0)
Present value of lease liabilities	36.2
Total Leases
0 - 12 months	37.0
13 - 24 months	32.0
25 - 36 months	29.0
37 - 48 months	28.0
49 - 60 months	26.0
Later years	201.0
Total lease payments	353.0
Less: imputed interest	(77.0)
Present value of lease liabilities	$ 276.0

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VARIABLE INTEREST ENTITIES - Schedule of Assets and Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
Variable Interest Entity [Line Items]
Total Assets	$ 47,715	$ 46,158	$ 44,778
Total Liabilities	41,625	40,108
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Total Assets	205	186
Total Liabilities	154	141
Maximum Exposure to Loss	202	183
Variable Interest Entity, Primary Beneficiary | Trust preferred securities
Variable Interest Entity [Line Items]
Total Assets	3	3
Total Liabilities	73	73
Maximum Exposure to Loss	0	0
Variable Interest Entity, Primary Beneficiary | Tax credit partnerships
Variable Interest Entity [Line Items]
Total Assets	174	143
Total Liabilities	81	62
Maximum Exposure to Loss	174	143
Variable Interest Entity, Primary Beneficiary | Other investments
Variable Interest Entity [Line Items]
Total Assets	28	40
Total Liabilities	0	6
Maximum Exposure to Loss	$ 28	$ 40

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VARIABLE INTEREST ENTITIES - Schedule of Trust-Preferred Securities (Details)	6 Months Ended
	Jun. 30, 2024
Trust Preferred Securities | Maximum
Variable Interest Entity [Line Items]
Deferral period for payment of interest	5 years

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VARIABLE INTEREST ENTITIES - Schedule of Affordable Housing, Historic And New Market Tax Credit Partnerships (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Tax credit investments included in other assets	$ 93	$ 81
Unfunded tax credit investments	$ 81	$ 62

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VARIABLE INTEREST ENTITIES - Schedule of Income Statement Effect (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Provision for income taxes:
Amortization of tax credit investments under proportional method	$ 6	$ 4	$ 11	$ 8
Tax credits from tax credit investments	(6)	(4)	(11)	(8)
Other tax benefits related to tax credit investments	(1)	0	(2)	(1)
Total impact on provision for income taxes	$ (1)	$ 0	$ (2)	$ (1)

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BORROWINGS - Schedule of Short-Term Borrowings (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Debt Disclosure [Abstract]
Securities sold under repurchase agreements	$ 201	$ 233
Federal Home Loan Bank advances	2,990	1,900
Federal funds purchased	298	260
Subordinated notes	127	113
Total short-term borrowings	$ 3,616	$ 2,506

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BORROWINGS - Additional Information (Details) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2024 USD ($) trust	Jun. 30, 2024 USD ($) trust	Dec. 31, 2023 USD ($)
Debt Instrument [Line Items]
Short-term advances	$ 200.0	$ 200.0	$ 400.0
Short-term advances, overnight maturities, percentage	6.70%	6.70%	21.10%
Federal home loan bank, advances, interest rate	0.331%	0.331%
Number of unconsolidated subsidiary trusts | trust	4	4
Trust Preferred Securities
Debt Instrument [Line Items]
Basis points, interest rate, type [Extensible Enumeration]		Secured Overnight Financing Rate (SOFR) [Member]
Tenor spread adjustment		0.0026
FHLB
Debt Instrument [Line Items]
Credit available with FHLB	$ 11,600.0	$ 11,600.0
Credit with FHLB utilized	4,200.0	4,200.0
FHLB | Letter of Credit
Debt Instrument [Line Items]
Credit with FHLB utilized	450.0	450.0
Other Wholesale Credit
Debt Instrument [Line Items]
Remaining borrowing capacity	$ 7,900.0	$ 7,900.0
Maximum | FHLB
Debt Instrument [Line Items]
Effective interest rates	4.88%	4.88%	4.88%
Minimum | FHLB
Debt Instrument [Line Items]
Effective interest rates	4.23%	4.23%	4.23%
FHLB
Debt Instrument [Line Items]
Short-term advances	$ 840.0	$ 840.0	$ 450.0
Short-term advances, overnight maturities, percentage	28.10%	28.10%	23.70%
Basis points, interest rate, type [Extensible Enumeration]	Secured Overnight Financing Rate (SOFR) [Member]
Other Subordinated Debt | Maximum
Debt Instrument [Line Items]
Debt term		1 year

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BORROWINGS - Schedule of Long-Term Borrowings (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Debt Disclosure [Abstract]
Federal Home Loan Bank advances	$ 1,250	$ 1,200
Senior notes	349	349
Subordinated notes	77	82
Junior subordinated debt	73	73
Other subordinated debt	267	267
Total long-term borrowings	$ 2,016	$ 1,971

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BORROWINGS - Schedule of Subordinated Debt (Details) $ in Millions	6 Months Ended
	Jun. 30, 2024 USD ($)
Debt Instrument [Line Items]
Aggregate Principal Amount Issued	$ 620
Net Proceeds	613
Carrying Value	616
Senior Notes
Debt Instrument [Line Items]
Aggregate Principal Amount Issued	350
Net Proceeds	347
Carrying Value	349
Other Subordinated Debt
Debt Instrument [Line Items]
Aggregate Principal Amount Issued	270
Net Proceeds	266
Carrying Value	$ 267
5.150% Senior Notes due August 25, 2025 | Senior Notes
Debt Instrument [Line Items]
Interest Rate	5.15%
Aggregate Principal Amount Issued	$ 350
Net Proceeds	347
Carrying Value	$ 349
7.968% Fixed-To-Floating Rate Subordinated Notes due 2029 | Other Subordinated Debt
Debt Instrument [Line Items]
Interest Rate	7.984%
Aggregate Principal Amount Issued	$ 120
Net Proceeds	118
Carrying Value	$ 119
Basis points, interest rate, type [Extensible Enumeration]	Secured Overnight Financing Rate (SOFR) [Member]
Basis points, tenor spread adjustment	0.0026
Basis points, spread	2.40%
4.875% Subordinated Notes due 2025 | Other Subordinated Debt
Debt Instrument [Line Items]
Interest Rate	4.875%
Aggregate Principal Amount Issued	$ 100
Net Proceeds	98
Carrying Value	$ 100
8.605% Fixed-To-Floating Rate Subordinated Notes due December 6, 2028 | Other Subordinated Debt
Debt Instrument [Line Items]
Interest Rate	8.62%
Aggregate Principal Amount Issued	$ 25
Net Proceeds	26
Carrying Value	$ 24
Basis points, interest rate, type [Extensible Enumeration]	Secured Overnight Financing Rate (SOFR) [Member]
Basis points, tenor spread adjustment	0.0026
Basis points, spread	3.02%
5.000% Fixed-To-Floating Rate Subordinated Note due May 29, 2030 | Other Subordinated Debt
Debt Instrument [Line Items]
Interest Rate	5.00%
Aggregate Principal Amount Issued	$ 25
Net Proceeds	24
Carrying Value	$ 24
Basis points, interest rate, type [Extensible Enumeration]	Secured Overnight Financing Rate (SOFR) [Member]
Basis points, spread	4.64%

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BORROWINGS - Schedule of Junior Subordinated Debt Trusts (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Subordinated Borrowing [Line Items]
Junior subordinated debt	$ 73	$ 73
Trust Preferred Securities
Subordinated Borrowing [Line Items]
Junior subordinated debt	$ 77
Basis points, interest rate, type [Extensible Enumeration]	Secured Overnight Financing Rate (SOFR) [Member]
Common Securities
Subordinated Borrowing [Line Items]
Junior subordinated debt	$ 3
F.N.B. Statutory Trust II
Subordinated Borrowing [Line Items]
Junior subordinated debt	$ 22
Interest Rate	7.25%
Basis points, interest rate, type [Extensible Enumeration]	Secured Overnight Financing Rate (SOFR) [Member]
Basis points	1.65%
F.N.B. Statutory Trust II | Trust Preferred Securities
Subordinated Borrowing [Line Items]
Junior subordinated debt	$ 22
F.N.B. Statutory Trust II | Common Securities
Subordinated Borrowing [Line Items]
Junior subordinated debt	1
Yadkin Valley Statutory Trust I
Subordinated Borrowing [Line Items]
Junior subordinated debt	$ 23
Interest Rate	6.92%
Basis points, interest rate, type [Extensible Enumeration]	Secured Overnight Financing Rate (SOFR) [Member]
Basis points	1.32%
Yadkin Valley Statutory Trust I | Trust Preferred Securities
Subordinated Borrowing [Line Items]
Junior subordinated debt	$ 25
Yadkin Valley Statutory Trust I | Common Securities
Subordinated Borrowing [Line Items]
Junior subordinated debt	1
FNB Financial Services Capital Trust I
Subordinated Borrowing [Line Items]
Junior subordinated debt	$ 23
Interest Rate	7.05%
Basis points, interest rate, type [Extensible Enumeration]	Secured Overnight Financing Rate (SOFR) [Member]
Basis points	1.46%
FNB Financial Services Capital Trust I | Trust Preferred Securities
Subordinated Borrowing [Line Items]
Junior subordinated debt	$ 25
FNB Financial Services Capital Trust I | Common Securities
Subordinated Borrowing [Line Items]
Junior subordinated debt	1
Patapsco Statutory Trust I
Subordinated Borrowing [Line Items]
Junior subordinated debt	$ 5
Interest Rate	7.08%
Basis points, interest rate, type [Extensible Enumeration]	Secured Overnight Financing Rate (SOFR) [Member]
Basis points	1.48%
Patapsco Statutory Trust I | Trust Preferred Securities
Subordinated Borrowing [Line Items]
Junior subordinated debt	$ 5
Patapsco Statutory Trust I | Common Securities
Subordinated Borrowing [Line Items]
Junior subordinated debt	$ 0

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Notional Amounts and Gross Fair Values (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Derivatives, Fair Value [Line Items]
Notional amount	$ 14,663.0	$ 14,282.0
Derivative asset, not offset against collateral	104.0	75.0
Derivative liability, not offset against collateral	19.0	35.0
Derivative asset, not subject to master netting arrangement	20.0	41.0
Derivative liability, not subject to master netting arrangement	337.0	293.0
Fair value, asset	124.0	116.0
Fair value, liability	356.0	328.0
Interest rate contracts – designated
Derivatives, Fair Value [Line Items]
Derivative asset, not offset against collateral	0.0	1.0
Derivative liability, not offset against collateral	3.0	0.0
Interest rate swaps – not designated
Derivatives, Fair Value [Line Items]
Derivative asset, not offset against collateral	104.0	74.0
Derivative liability, not offset against collateral	16.0	35.0
Derivative asset, not subject to master netting arrangement	16.0	35.0
Derivative liability, not subject to master netting arrangement	336.0	289.0
Interest rate lock commitments – not designated
Derivatives, Fair Value [Line Items]
Derivative asset, not subject to master netting arrangement	3.0	5.0
Derivative liability, not subject to master netting arrangement	0.0	0.0
Forward delivery commitments – not designated
Derivatives, Fair Value [Line Items]
Derivative asset, not subject to master netting arrangement	1.0	1.0
Derivative liability, not subject to master netting arrangement	1.0	4.0
Credit risk contracts – not designated
Derivatives, Fair Value [Line Items]
Notional amount	603.9
Derivative asset, not subject to master netting arrangement	0.0	0.0
Derivative liability, not subject to master netting arrangement	0.0	0.0
Subject to master netting arrangements:
Derivatives, Fair Value [Line Items]
Notional amount	7,406.0	7,460.0
Subject to master netting arrangements: | Interest rate contracts – designated
Derivatives, Fair Value [Line Items]
Notional amount	1,600.0	1,800.0
Subject to master netting arrangements: | Interest rate swaps – not designated
Derivatives, Fair Value [Line Items]
Notional amount	5,806.0	5,660.0
Not subject to master netting arrangements:
Derivatives, Fair Value [Line Items]
Notional amount	7,257.0	6,822.0
Not subject to master netting arrangements: | Interest rate swaps – not designated
Derivatives, Fair Value [Line Items]
Notional amount	5,806.0	5,660.0
Not subject to master netting arrangements: | Interest rate lock commitments – not designated
Derivatives, Fair Value [Line Items]
Notional amount	323.0	239.0
Not subject to master netting arrangements: | Forward delivery commitments – not designated
Derivatives, Fair Value [Line Items]
Notional amount	366.0	294.0
Not subject to master netting arrangements: | Credit risk contracts – not designated
Derivatives, Fair Value [Line Items]
Notional amount	$ 762.0	$ 629.0

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Amounts Reclassified from AOCI (Details) - Interest rate contracts - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Amount of Gain (Loss) Recognized in OCI on Derivatives	$ (15,000,000)	$ (13,000,000)
Amount of Gain (Loss) Reclassified from AOCI into Income	0	0
Interest income (expense)
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Amount of Gain (Loss) Reclassified from AOCI into Income	(19,000,000)	(9,000,000)
Other income
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Amount of Gain (Loss) Reclassified from AOCI into Income	$ 0	$ 0

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Effect of Cash Flow Hedging on Income Statement (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Derivative [Line Items]
Interest Income - Loans and Leases	$ 494,000,000	$ 429,000,000	$ 975,000,000	$ 823,000,000
Interest Expense - Short-Term Borrowings	$ 32,000,000	$ 22,000,000	60,000,000	32,000,000
Interest rate contracts
Derivative [Line Items]
Amount of gain (loss) reclassified from AOCI into net income			0	0
Interest rate contracts | Interest Income - Loans and Leases
Derivative [Line Items]
Amount of gain (loss) reclassified from AOCI into net income			(25,000,000)	(21,000,000)
Interest rate contracts | Interest Expense - Short-Term Borrowings
Derivative [Line Items]
Amount of gain (loss) reclassified from AOCI into net income			$ 6,000,000	$ 12,000,000

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Additional Information (Details) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Derivative [Line Items]
Notional amount	$ 14,663,000,000		$ 14,282,000,000
Additional amount in excess of posted collateral required in case of breached agreements	$ 0		0
Interest rate contracts
Derivative [Line Items]
Maximum length of time hedged in interest rate cash flow hedge	1 year 9 months 18 days
Period to reclassification of cash flow hedge gain loss	12 months
Derivative loss to be reclassified within twelve months	$ 35,900,000
Derivative loss to be reclassified within twelve months, net of tax	27,800,000
Derivative gain or losses excluded from assessment of hedge effectiveness	0
Amount of gain (loss) reclassified from AOCI into net income	0	$ 0
Credit risk contracts
Derivative [Line Items]
Notional amount	603,900,000
Maximum exposure under credit risk agreement assuming customer default	100,000		100,000
Credit risk derivatives, purchased at fair value	100,000		200,000
Credit risk derivatives, sold at fair value	$ 100,000		$ 100,000
Credit risk contracts | Minimum
Derivative [Line Items]
Risk participation agreements, term	1 month
Credit risk contracts | Maximum
Derivative [Line Items]
Risk participation agreements, term	17 years

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Effect of Derivative Financial Instruments on Income Statement (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Interest rate swaps
Derivative [Line Items]
Derivative financial instrument, net	$ 0	$ 0
Interest rate lock commitments
Derivative [Line Items]
Derivative financial instrument, net	0	0
Forward delivery contracts
Derivative [Line Items]
Derivative financial instrument, net	4	3
Credit risk contracts
Derivative [Line Items]
Derivative financial instrument, net	$ 0	$ 0

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Derivative Assets (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Derivative [Line Items]
Net Amount Presented in the Consolidated Balance Sheets	$ 104	$ 75
Financial Instruments	0	0
Cash Collateral	103	75
Net Amount	1	0
Interest rate contracts – designated
Derivative [Line Items]
Net Amount Presented in the Consolidated Balance Sheets	0	1
Financial Instruments		0
Cash Collateral		1
Net Amount		0
Interest rate swaps – not designated
Derivative [Line Items]
Net Amount Presented in the Consolidated Balance Sheets	104	74
Financial Instruments	0	0
Cash Collateral	103	74
Net Amount	$ 1	$ 0

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Derivative Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Derivative [Line Items]
Net Amount Presented in the Consolidated Balance Sheets	$ 19	$ 35
Financial Instruments	0	0
Cash Collateral	19	35
Net Amount	0	0
Interest rate contracts – designated
Derivative [Line Items]
Net Amount Presented in the Consolidated Balance Sheets	3	0
Financial Instruments	0
Cash Collateral	3
Net Amount	0
Interest rate swaps – not designated
Derivative [Line Items]
Net Amount Presented in the Consolidated Balance Sheets	16	35
Financial Instruments	0	0
Cash Collateral	16	35
Net Amount	$ 0	$ 0

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COMMITMENTS, CREDIT RISK AND CONTINGENCIES - Schedule of Off-Balance Sheet Credit Risk Information (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Standby letters of credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Extended credit and standby letters of credit	$ 253	$ 257
Commitments to extend credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Extended credit and standby letters of credit	$ 14,103	$ 13,656

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COMMITMENTS, CREDIT RISK AND CONTINGENCIES - Additional Information (Details) - USD ($) $ in Thousands	Feb. 05, 2024	Jun. 30, 2024	Dec. 31, 2023
Loss Contingencies [Line Items]
Percentage of commitments to extend credit dependent upon the financial condition of the customers		76.80%
Allowance for credit losses on loan commitments that are not unconditionally cancellable		$ 21,800	$ 21,500
Parent Company | Settled Litigation | Subsidies in mortgage loan and home equity loans
Loss Contingencies [Line Items]
Period under investigation	4 years
Settlement amount	$ 11,750

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STOCK INCENTIVE PLANS - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2024	Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares available up to (in shares)	14,000,000	14,000,000
Shares registered during period (in shares)	8,000,000
Common stock shares remaining available for awards under plan (in shares)	9,106,891	9,106,891
Unrecognized compensation expense	$ 16.0	$ 16.0
Performance- Based Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	1.0	$ 1.0
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of units issued		3 years
Restricted stock awards issued (in shares)		1,249,783	1,354,017
Unrecognized compensation expense	$ 15.6	$ 15.6
Restricted Stock | Performance- Based Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awards issued (in shares)		331,182	282,106

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STOCK INCENTIVE PLANS - Schedule of Restricted Stock Units Activity (Details) - $ / shares	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Units
Shares, unvested units outstanding at end of period (in shares)	3,567,364
Restricted Stock
Units
Shares, unvested units outstanding at beginning of period (in shares)	3,502,598	4,821,182
Shares, granted (in shares)	1,249,783	1,354,017
Shares, net adjustment (in shares)	341,857	306,917
Shares, vested (in shares)	(1,499,097)	(2,303,266)
Shares, forfeited/expired/canceled (in shares)	(27,777)	(578,493)
Shares, dividend reinvestment (in shares)	0	74,505
Shares, unvested units outstanding at end of period (in shares)	3,567,364	3,674,862
Weighted Average Grant Price per Share
Weighted average grant price, invested units outstanding at beginning of period (USD per share)	$ 12.89	$ 10.30
Weighted average grant price, granted (USD per share)	14.04	12.74
Weighted average grant price, net adjusted (USD per share)	0	8.43
Weighted average grant price, vested (USD per share)	12.76	7.99
Weighted average grant price, forfeited/expired/canceled (USD per share)	12.25	8.13
Weighted average grant price, dividend reinvestment (USD per share)	0	12.16
Weighted average grant price, invested units outstanding at end of period (USD per share)	$ 13.36	$ 12.87

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STOCK INCENTIVE PLANS - Schedule of Certain Information Related to Restricted Stock Units (Details) - Restricted Stock - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 12	$ 13
Tax benefit related to stock-based compensation expense	3	3
Fair value of units vested	$ 19	$ 30

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STOCK INCENTIVE PLANS - Schedule of Components of Restricted Stock Units (Details) $ in Millions	6 Months Ended
	Jun. 30, 2024 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested restricted stock units (in shares) | shares	3,567,364
Unrecognized compensation expense	$ 16
Intrinsic value	$ 49
Weighted average remaining life (in years)	1 year 10 months 20 days
Service- Based Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested restricted stock units (in shares) | shares	2,614,032
Unrecognized compensation expense	$ 15
Intrinsic value	$ 36
Weighted average remaining life (in years)	1 year 11 months 15 days
Performance- Based Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested restricted stock units (in shares) | shares	953,332
Unrecognized compensation expense	$ 1
Intrinsic value	$ 13
Weighted average remaining life (in years)	1 year 8 months 19 days

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INCOME TAXES - Schedule of Income Tax Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Current income taxes:
Federal taxes	$ 30	$ 36	$ 47	$ 67
State taxes	2	3	4	5
Total current income taxes	32	39	51	72
Deferred income taxes:
Federal taxes	1	(3)	14	(1)
State taxes	1	1	3	1
Total deferred income taxes	2	(2)	17	0
Total income taxes	$ 34	$ 37	$ 68	$ 72
Statutory federal tax rate	21.00%	21.00%	21.00%	21.00%
Effective tax rate	21.60%	20.50%	21.60%	20.00%

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INCOME TAXES - Additional Information (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Deferred tax assets	$ 107.4	$ 120.8

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OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	$ 6,006	$ 5,788	$ 6,050	$ 5,653
Other comprehensive (loss) income before reclassifications			(23)
Amounts reclassified from AOCI			15
Other Comprehensive Income (Loss)	7	(40)	(8)	2
Balance at end of period	6,090	5,818	6,090	5,818
Unrealized Net Gains (Losses) on Debt Securities Available for Sale
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period			(160)
Other comprehensive (loss) income before reclassifications			(11)
Amounts reclassified from AOCI			0
Other Comprehensive Income (Loss)			(11)
Balance at end of period	(171)		(171)
Unrealized Net Gains (Losses) on Derivative Instruments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period			(33)
Other comprehensive (loss) income before reclassifications			(12)
Amounts reclassified from AOCI			15
Other Comprehensive Income (Loss)			3
Balance at end of period	(30)		(30)
Unrecognized Pension and Postretirement Obligations
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period			(42)
Other comprehensive (loss) income before reclassifications			0
Amounts reclassified from AOCI			0
Other Comprehensive Income (Loss)			0
Balance at end of period	(42)		(42)
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(250)	(315)	(235)	(357)
Balance at end of period	$ (243)	$ (355)	$ (243)	$ (355)

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EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share [Abstract]
Net income	$ 123	$ 142	$ 245	$ 289
Less: Preferred stock dividends	0	2	6	4
Net income available to common stockholders	123	140	239	285
Net income available to common stockholders	$ 123	$ 140	$ 239	$ 285
Basic weighted average common shares outstanding (in shares)	361,754,312	360,124,415	361,500,357	360,489,630
Net effect of dilutive stock options and restricted stock (in shares)	946,921	2,501,767	1,159,902	3,286,929
Diluted weighted average common shares outstanding (in shares)	362,701,233	362,626,182	362,660,259	363,776,559
Earnings per common share:
Basic (USD per share)	$ 0.34	$ 0.39	$ 0.66	$ 0.79
Diluted (USD per share)	$ 0.34	$ 0.39	$ 0.66	$ 0.78
Average shares excluded from the diluted earnings per common share calculation (in shares)			0	0

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CASH FLOW INFORMATION - Summary of Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Supplemental Cash Flow Elements [Abstract]
Interest paid on deposits and other borrowings	$ 461	$ 238
Income taxes paid	26	67
Transfers of loans to other real estate owned	1	1
Loans transferred to portfolio from held for sale	$ 12	$ 26

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CASH FLOW INFORMATION - Additional Information (Details) - USD ($)	Jun. 30, 2024	Jun. 30, 2023
Supplemental Cash Flow Elements [Abstract]
Restricted cash	$ 0	$ 0

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BUSINESS SEGMENTS - Additional Information (Details)	6 Months Ended
	Jun. 30, 2024 segment
Segment Reporting [Abstract]
Number of reportable segments	3

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BUSINESS SEGMENTS - Schedule of Financial Information for Segments (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Segment Reporting Information [Line Items]
Interest income	$ 557.0	$ 484.0	$ 1,100.0	$ 928.0
Interest expense	241.0	155.0	465.0	262.0
Net Interest Income	316.0	329.0	635.0	666.0
Provision for credit losses	20.2	18.5	34.1	32.6
Non-interest income	88.0	81.0	176.0	160.0
Non-interest expense	222.0	207.0	455.0	422.0
Amortization of intangibles	5.0	5.0	9.0	10.0
Income tax expense (benefit)	34.0	37.0	68.0	72.0
Net income (loss)	123.0	142.0	245.0	289.0
Total Assets	47,715.0	44,778.0	47,715.0	44,778.0	$ 46,158.0
Total intangibles	2,537.0	2,556.0	2,537.0	2,556.0
Operating Segments | Community Banking
Segment Reporting Information [Line Items]
Interest income	555.0	483.0	1,097.0	925.0
Interest expense	233.0	147.0	451.0	245.0
Net Interest Income	322.0	336.0	646.0	680.0
Provision for credit losses	20.0	19.0	34.0	33.0
Non-interest income	65.0	57.0	127.0	112.0
Non-interest expense	199.0	187.0	410.0	382.0
Amortization of intangibles	5.0	5.0	9.0	10.0
Income tax expense (benefit)	36.0	39.0	70.0	77.0
Net income (loss)	127.0	143.0	250.0	290.0
Total Assets	47,421.0	44,629.0	47,421.0	44,629.0
Total intangibles	2,503.0	2,521.0	2,503.0	2,521.0
Operating Segments | Wealth Management
Segment Reporting Information [Line Items]
Interest income	0.0	0.0	0.0	0.0
Interest expense	0.0	0.0	0.0	0.0
Net Interest Income	0.0	0.0	0.0	0.0
Provision for credit losses	0.0	0.0	0.0	0.0
Non-interest income	20.0	18.0	40.0	36.0
Non-interest expense	14.0	13.0	27.0	26.0
Amortization of intangibles	0.0	0.0	0.0	0.0
Income tax expense (benefit)	1.0	1.0	3.0	2.0
Net income (loss)	5.0	4.0	10.0	8.0
Total Assets	42.0	39.0	42.0	39.0
Total intangibles	9.0	9.0	9.0	9.0
Operating Segments | Insurance
Segment Reporting Information [Line Items]
Interest income	0.0	0.0	0.0	0.0
Interest expense	0.0	0.0	0.0	0.0
Net Interest Income	0.0	0.0	0.0	0.0
Provision for credit losses	0.0	0.0	0.0	0.0
Non-interest income	6.0	7.0	13.0	14.0
Non-interest expense	6.0	5.0	10.0	9.0
Amortization of intangibles	0.0	0.0	0.0	0.0
Income tax expense (benefit)	0.0	1.0	1.0	1.0
Net income (loss)	0.0	1.0	2.0	4.0
Total Assets	36.0	32.0	36.0	32.0
Total intangibles	25.0	26.0	25.0	26.0
Parent and Other
Segment Reporting Information [Line Items]
Interest income	2.0	1.0	3.0	3.0
Interest expense	8.0	8.0	14.0	17.0
Net Interest Income	(6.0)	(7.0)	(11.0)	(14.0)
Provision for credit losses	0.0	0.0	0.0	0.0
Non-interest income	(3.0)	(1.0)	(4.0)	(2.0)
Non-interest expense	3.0	2.0	8.0	5.0
Amortization of intangibles	0.0	0.0	0.0	0.0
Income tax expense (benefit)	(3.0)	(4.0)	(6.0)	(8.0)
Net income (loss)	(9.0)	(6.0)	(17.0)	(13.0)
Total Assets	216.0	78.0	216.0	78.0
Total intangibles	$ 0.0	$ 0.0	$ 0.0	$ 0.0

XML

FAIR VALUE MEASUREMENTS - Schedule of Assets and Liabilities on Recurring Basis (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	$ 3,364	$ 3,254
Loans held for sale	128	150	[1]
Loans receivable	47	45
Derivative financial instruments	124	116
Derivative financial instruments	356	328
U.S. Treasury
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	197	420
U.S. government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	67	79
U.S. government-sponsored entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	298	223
Agency MBS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	886	752
Agency collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	758	832
Agency commercial MBS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	1,092	884
States of the U.S. and political subdivisions (municipals)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	26	27
Other debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	40	37
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	197	420
Loans receivable	0	0
Derivative financial instruments	0	0
Derivative financial instruments	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	3,167	2,834
Loans receivable	128	150
Derivative financial instruments	121	111
Derivative financial instruments	356	328
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Loans receivable	31,870	30,491
Derivative financial instruments	3	5
Derivative financial instruments	0	0
Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	3,364	3,254
Loans held for sale	128	150
Loans receivable	47
Derivative financial instruments	124	116
Total assets measured at fair value on a recurring basis	3,663	3,520
Derivative financial instruments	356	328
Total liabilities measured at fair value on a recurring basis	356	328
Fair Value, Recurring | U.S. Treasury
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	197	420
Fair Value, Recurring | U.S. government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	67	79
Fair Value, Recurring | U.S. government-sponsored entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	298	223
Fair Value, Recurring | Agency MBS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	886	752
Fair Value, Recurring | Agency collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	758	832
Fair Value, Recurring | Agency commercial MBS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	1,092	884
Fair Value, Recurring | States of the U.S. and political subdivisions (municipals)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	26	27
Fair Value, Recurring | Other debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	40	37
Fair Value, Recurring | Trading
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments	353	324
Fair Value, Recurring | Not for trading
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments	3	4
Fair Value, Recurring | Trading
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments	120	109
Fair Value, Recurring | Not for trading
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments	4	7
Fair Value, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	197	420
Loans held for sale	0	0
Loans receivable	0
Derivative financial instruments	0	0
Total assets measured at fair value on a recurring basis	197	420
Derivative financial instruments	0	0
Total liabilities measured at fair value on a recurring basis	0	0
Fair Value, Recurring | Level 1 | U.S. Treasury
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	197	420
Fair Value, Recurring | Level 1 | U.S. government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Fair Value, Recurring | Level 1 | U.S. government-sponsored entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Fair Value, Recurring | Level 1 | Agency MBS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Fair Value, Recurring | Level 1 | Agency collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Fair Value, Recurring | Level 1 | Agency commercial MBS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Fair Value, Recurring | Level 1 | States of the U.S. and political subdivisions (municipals)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Fair Value, Recurring | Level 1 | Other debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Fair Value, Recurring | Level 1 | Trading
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments	0	0
Fair Value, Recurring | Level 1 | Not for trading
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments	0	0
Fair Value, Recurring | Level 1 | Trading
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments	0	0
Fair Value, Recurring | Level 1 | Not for trading
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments	0	0
Fair Value, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	3,167	2,834
Loans held for sale	128	150
Loans receivable	0
Derivative financial instruments	121	111
Total assets measured at fair value on a recurring basis	3,416	3,095
Derivative financial instruments	356	328
Total liabilities measured at fair value on a recurring basis	356	328
Fair Value, Recurring | Level 2 | U.S. Treasury
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Fair Value, Recurring | Level 2 | U.S. government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	67	79
Fair Value, Recurring | Level 2 | U.S. government-sponsored entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	298	223
Fair Value, Recurring | Level 2 | Agency MBS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	886	752
Fair Value, Recurring | Level 2 | Agency collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	758	832
Fair Value, Recurring | Level 2 | Agency commercial MBS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	1,092	884
Fair Value, Recurring | Level 2 | States of the U.S. and political subdivisions (municipals)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	26	27
Fair Value, Recurring | Level 2 | Other debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	40	37
Fair Value, Recurring | Level 2 | Trading
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments	353	324
Fair Value, Recurring | Level 2 | Not for trading
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments	3	4
Fair Value, Recurring | Level 2 | Trading
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments	120	109
Fair Value, Recurring | Level 2 | Not for trading
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments	1	2
Fair Value, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Loans held for sale	0	0
Loans receivable	47
Derivative financial instruments	3	5
Total assets measured at fair value on a recurring basis	50	5
Derivative financial instruments	0	0
Total liabilities measured at fair value on a recurring basis	0	0
Fair Value, Recurring | Level 3 | U.S. Treasury
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Fair Value, Recurring | Level 3 | U.S. government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Fair Value, Recurring | Level 3 | U.S. government-sponsored entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Fair Value, Recurring | Level 3 | Agency MBS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Fair Value, Recurring | Level 3 | Agency collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Fair Value, Recurring | Level 3 | Agency commercial MBS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Fair Value, Recurring | Level 3 | States of the U.S. and political subdivisions (municipals)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Fair Value, Recurring | Level 3 | Other debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Fair Value, Recurring | Level 3 | Trading
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments	0	0
Fair Value, Recurring | Level 3 | Not for trading
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments	0	0
Fair Value, Recurring | Level 3 | Trading
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments	0	0
Fair Value, Recurring | Level 3 | Not for trading
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments	$ 3	$ 5

[1] Amount represents loans for which we have elected the fair value option. See Note 18.

XML

FAIR VALUE MEASUREMENTS - Schedule of Rollforward on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	$ 5	$ 0
Purchases, issuances, sales and settlements:
Issuances	3	6
Settlements	(5)	(1)
Transfers into Level 3	47
Balance at end of period	50	5
Other Debt Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	0	0
Purchases, issuances, sales and settlements:
Issuances	0	0
Settlements	0	0
Transfers into Level 3	0
Balance at end of period	0	0
Loans Receivable
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	0	0
Purchases, issuances, sales and settlements:
Issuances	0	0
Settlements	0	0
Transfers into Level 3	47
Balance at end of period	47	0
Interest Rate Lock Commitments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	5	0
Purchases, issuances, sales and settlements:
Issuances	3	6
Settlements	(5)	(1)
Transfers into Level 3	0
Balance at end of period	$ 3	$ 5

XML

FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Fair Value Measurements Disclosure [Line Items]
Collateral dependent loans, allowance for credit loss	$ 7,300,000
Provision for fair value measurements included in allowance for loan losses	7,100,000
Fair Value, Recurring
Fair Value Measurements Disclosure [Line Items]
Transfer into (from) level 3	47,300,000	$ 0
Fair Value, Nonrecurring
Fair Value Measurements Disclosure [Line Items]
Collateral dependent loans carrying value	34,800,000
Fair Value, Nonrecurring | Mortgage Servicing Rights
Fair Value Measurements Disclosure [Line Items]
Loan servicing rights	700,000
Valuation allowance for impairment of recognized servicing assets	0
Fair Value, Nonrecurring | Mortgage Servicing Rights | Provision Expense
Fair Value Measurements Disclosure [Line Items]
Valuation allowance for impairment of recognized servicing assets, provision	$ 200,000

XML

FAIR VALUE MEASUREMENTS - Schedule of Non-Recurring Basis Assets (Details) - USD ($) $ in Millions	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Mortgage Servicing Rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	$ 78.0	$ 75.2	$ 71.8	$ 72.1	$ 67.8	$ 68.6
Fair Value, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans	35.0		35.0
Indirect installment loans held for sale			338.0
Other real estate owned			2.0
Fair Value, Nonrecurring | Mortgage Servicing Rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	1.0		12.0
Fair Value, Nonrecurring | SBA-Guaranteed Loan Servicing
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets			1.0
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	0.0		0.0
Level 1 | Fair Value, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans	0.0		0.0
Indirect installment loans held for sale			0.0
Other real estate owned			0.0
Level 1 | Fair Value, Nonrecurring | Mortgage Servicing Rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	0.0		0.0
Level 1 | Fair Value, Nonrecurring | SBA-Guaranteed Loan Servicing
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets			0.0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	0.0		0.0
Level 2 | Fair Value, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans	0.0		0.0
Indirect installment loans held for sale			0.0
Other real estate owned			0.0
Level 2 | Fair Value, Nonrecurring | Mortgage Servicing Rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	0.0		0.0
Level 2 | Fair Value, Nonrecurring | SBA-Guaranteed Loan Servicing
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets			0.0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	79.0		73.0
Level 3 | Fair Value, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans	35.0		35.0
Indirect installment loans held for sale			338.0
Other real estate owned			2.0
Level 3 | Fair Value, Nonrecurring | Mortgage Servicing Rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	$ 1.0		12.0
Level 3 | Fair Value, Nonrecurring | SBA-Guaranteed Loan Servicing
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets			$ 1.0

XML

FAIR VALUE MEASUREMENTS - Schedule of Financial Instruments (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt securities available for sale	$ 3,364	$ 3,254
Debt securities held to maturity	3,532	3,593
Net loans and leases, including loans held for sale	47	45
Derivative assets	124	116
Long-term borrowings	616
Derivative liabilities	356	328
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	1,880	1,576
Debt securities available for sale	197	420
Debt securities held to maturity	0	0
Net loans and leases, including loans held for sale	0	0
Loan servicing rights	0	0
Derivative assets	0	0
Accrued interest receivable	178	160
Deposits	28,107	28,496
Short-term borrowings	3,633	2,505
Long-term borrowings	0	0
Derivative liabilities	0	0
Accrued interest payable	73	69
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	0	0
Debt securities available for sale	3,167	2,834
Debt securities held to maturity	3,532	3,593
Net loans and leases, including loans held for sale	128	150
Loan servicing rights	0	0
Derivative assets	121	111
Accrued interest receivable	0	0
Deposits	6,831	6,158
Short-term borrowings	0	0
Long-term borrowings	1,274	1,192
Derivative liabilities	356	328
Accrued interest payable	0	0
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	0	0
Debt securities available for sale	0	0
Debt securities held to maturity	0	0
Net loans and leases, including loans held for sale	31,870	30,491
Loan servicing rights	79	73
Derivative assets	3	5
Accrued interest receivable	0	0
Deposits	0	0
Short-term borrowings	0	0
Long-term borrowings	769	736
Derivative liabilities	0	0
Accrued interest payable	0	0
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	1,880	1,576
Debt securities available for sale	3,364	3,254
Debt securities held to maturity	3,893	3,911
Net loans and leases, including loans held for sale	33,470	32,405
Loan servicing rights	67	61
Derivative assets	124	116
Accrued interest receivable	178	160
Deposits	34,994	34,711
Short-term borrowings	3,616	2,506
Long-term borrowings	2,016	1,971
Derivative liabilities	356	328
Accrued interest payable	73	69
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	1,880	1,576
Debt securities available for sale	3,364	3,254
Debt securities held to maturity	3,532	3,593
Net loans and leases, including loans held for sale	31,998	30,641
Loan servicing rights	79	73
Derivative assets	124	116
Accrued interest receivable	178	160
Deposits	34,938	34,654
Short-term borrowings	3,633	2,505
Long-term borrowings	2,043	1,928
Derivative liabilities	356	328
Accrued interest payable	$ 73	$ 69